welcome to

#criteoboom

THE VALUE OF CLICKERS – OCTOBER 2012Patrick Wyatt, Head of Business Intelligence, CRITEO 1

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WHAT IS

BIG DATA?

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Definition:

Being able to store and use limitless amounts of data

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DECODING THE HUMAN GENOME IN 10

DAYS

BIG DATA ANALYTICS

CRAWLING 50B WEB PAGES

REAL-TIME BIG DATA

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Our Big Data Question:

The Display Industry & the

Value of Clickers

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comScore’s Natural Born Clicker

“Earning less than $40,000”

“Younger browsers”

“Clicks have near zero

correlation with conversion”

“Downscale”

“Natural Born

Clickers”

“Half of All Display Ad Clicks are Worthless”

-Seeking Alpha, 2009

comScore’s Report Changed Minds

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“50% Drop in Number of US Internet Users Who Click on Display Ads” -ComScore 2011

“Conversions, Not Clicks, Key To Display Ads”

-MediaPost, 2012

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Can we use Big Data to test this hypothesis?

BIG DATA, BIG PANEL

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500K Users 2 Millions Users

147 Million Users

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110M Sales…worth $11BN

Non-Clickers

Clickers

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• Nobody clicks on ads anymore

• People who click don’t buy

• Most Clicks are made by a few users

MYTHS

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“Nobody clicks on ads anymore”

MYTH 1

43% of Regular Buyers are Clickers on Criteo Ads Alone

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43%

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… But only 15% of Non-Buyers

15%

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“People who click don’t buy”

MYTH 2

Reality 2 : Clickers buy 3X more frequently than non clickers

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“Most Clicks are made by a few users”

MYTH 3

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10% of Criminals Commit 50% of all Crimes

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10% of Taxpayers Pay 70% of all Income Tax

Reality 3: Half of Clicks and Sales are Made by 20% of Users

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Almost Half of regular buyers are clickers

Clickers buy 3x more than non-clickers

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Conclusion:

People who click on Ads want to buy things

(Obvious, really)

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So why did clickers get such a hard time?

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I’m a 30-year-old British male who wants to go to New York

What Ads Did I See?

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IneffectiveEffective

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RIGHT USERRIGHT

MESSAGERIGHT TIME

Buyers click

+ +

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Thanks to Big Data, Display Ads are now

doing something that search ads have done for the last 10

years…

A $20 BN Opportunity for Display

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Search:+1600% Growth 5% Of Time Spent Online

Display:+300% Growth95% Of Time Spent Online

Big Data… comes in two flavors :

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1. Analytics: Big Data Analytics tells us about the true value of clickers

2. Real-Time: Real-Time Big Data is now enabling Display Ads that are worth clicking on

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• Comes in two flavors – Analytics and Real-Time

• Big Data Analytics tells us about the true value of clickers

• Real-Time Big Data is now enabling Display Ads that are worth clicking on

Big Data…