5 Trends to Watch in Performance MarketingJon MyersVP & Managing Director - EMEA

@JonDMyers

October, 2014

Performance Marketing: Looking back over 20 years

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The history of performance marketing 1993 - 1998

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2000: A performance marketing behemoth was born

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Google.com: 1999

NO RECORDED REVENUE FOR 1999

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The history of performance marketing 2000 - 2007

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Google.com: 2007

2007 REVENUE = $17.5BN

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The history of performance marketing 2007 - 2013

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Google.com: 2014

2013 REVENUE = $57.8BN

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October, 2014

Performance Marketing Trends: 1) Search is learning from display

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Search is online advertising’s biggest channel…

…BUT IT’S STILL LEARNING FROM OTHER CHANNELS

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Search has traditionally been focused on keywords

Keyword Portfolio

Cost related

Re

turn

rela

ted

1 2

3

4

56

high

hig

h

Audiences are the new keywords

Audience activation in RLSA: “Credit Card”

• High HHI• Affluent Cluster• Senior Mgmt

Existing Customer

Top Rewards Card Perks

Low RateDouble Miles

No MessingNegative bid boost: - 100%

Audience Search Ad Copy Bid

• Student• Frequent Traveler

Adjust bids based on audience data

12% uplift in generic query CTRs for Motor Insurance vs. standard campaigns 7% reduction in CPCs across Motor Insurance vs. standard campaigns 14% uplift in margin across the Insurance vertical

16

Adjust messaging based on audience data

Non-Member Member

October, 2014

Performance Marketing Trends: 2) Display is learning from search

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Display took search’s biddable model

Now display is taking search intent

Intent signal capture

October, 2014

Performance Marketing Trends: 3) Search and social work together

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The buyer’s journey is highly fragmented

47% of revenue comes from purchases made in more than one day (Google) 65% of revenue comes from purchases made in more than one step (Google) Search engines and social networks are the top two sources used to research and

inspire purchase decisions (eMarketer)

Sources: Brand Perfect, “Adventures in Retail”, November 9 2012 and http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html

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Search and social have become our go-to channels

Rapid and Continuous Growth

50% of Total Media Budgets

50% of Marketers Will Increase

6 Billion Google Searches / Day

1 Billion Daily Facebook Users

Google / Facebook = #1 / #2 for ROI

75% See as Critical for Cross-Channel

Sources: RBC Capital Markets and Advertising Age, “Facebook, Inc.” September 12, 2013, and http://news.magnaglobal.com/ipgmediabrands/press-releases/magna-global-advertising-forecast-2014-ipg-mediabrands.htm

Consumer Usage is Omnipresent

Marketers Are Embracing

Looking at search and social separately doesn’t tell the full story

Social is more likely to “assist” sales made in other channels For every Social click resulting in a purchase, there are two clicks assisting another

converting channel

Source: Google http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html

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Social advertising drives better search performance

Customers who touch both channels are more valuable

Search Touches + Social Touches = Better Performance

• 2X higher conversion rate, 2X higher revenue / click than Search only• 4.5X higher conversion rate, 4X higher revenue / click than Social only

Focus on Acquiring Customers Across Channels

• Focusing on a single channel ignores the customers’ path to conversion • Focusing on a single channel limits the potential results you can achieve

Google / Bing Click+ Facebook Click

Facebook ClickOnly

Google /BingClick Only

3.56% CR$3.16 RPC

1.88% CR$1.56 RPC

.76% CR$.77 RPC

Source: Marin Software’s Combining the Power of Search and Social for Exponential ROI report

Search Revenue per Click is Higher When Managed with Social o + 36% higher than Search campaigns managed independently

Search Revenue per Conversion is Higher When Managed with Social o + 68% higher than Search campaigns managed independently

Is search and social campaign integration worth it?

Source: Marin Software’s Combining the Power of Search and Social for Exponential ROI report

October, 2014

Performance Marketing Trends: 4) “Cross-channel” is about the consumer, not the channel

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Journey to conversion is about the consumer

One to One Relationship

How well do you understand your consumer?

Cross-channel audience activation

Mr. CMO – Tear down those walls

October, 2014

Performance Marketing Trends: 5) Programmatic is moving towards transparency

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Mr. CMO – Tear Down Those Walls

You need to gain transparency & control from programmatic display

Transparent bid calculations

Second-party data visibility

Full view of media costs

October, 2014

Performance Marketing in the Future: What other media could become programmatic?

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Could television ads go programmatic?

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Could radio ads go programmatic?

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Could outdoor go programmatic?

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Your World

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Thanks!Jon MyersVP & Managing Director - EMEA

@JonDMyers