product ads: ch-ch-ch-changes...and how to prepare by frank kochenash

29
#SMX #14b @CommerceHub Frank Kochenash, VP Client Operation, CommerceHub Product Ads: Ch-Ch-Ch-Changes . . . And how to prepare

Upload: search-marketing-expo-smx

Post on 26-Jul-2015

665 views

Category:

Retail


0 download

TRANSCRIPT

#SMX #14b @CommerceHub

Frank Kochenash, VP Client Operation, CommerceHub

Product Ads: Ch-Ch-Ch-Changes . . . And how to prepare

#SMX #14b @CommerceHub

First, a review of a transitional year (. . . A big one for mobile engagement)

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact Share of ad spend dedicated to smartphones increased during the Shopping Campaign shift but has been pretty stable since . . .

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17 0%

5%

10%

15%

20%

25%

30%

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

Weekly PLA ad spend by device type Smartphone share of ad spend

Desktop Tablet Smartphone

Shift to Shopping

Campaigns

Shift to Shopping

Campaigns

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact . . . Correspondingly smartphone impressions increased, especially during shift to Shopping Campaigns . . .

2014

-10

2014

-11

2014

-12

2014

-13

2014

-14

2014

-15

2014

-16

2014

-17

2014

-18

2014

-19

2014

-20

2014

-21

2014

-22

2014

-23

2014

-24

2014

-25

2014

-26

2014

-27

2014

-28

2014

-29

2014

-30

2014

-31

2014

-32

2014

-33

2014

-34

2014

-35

2014

-36

2014

-37

2014

-38

2014

-39

2014

-40

2014

-41

2014

-42

2014

-43

2014

-44

2014

-45

2014

-46

2014

-47

2014

-48

2014

-49

2014

-50

2014

-51

2014

-52

2014

-53

2015

-1

2015

-2

2015

-3

2015

-4

2015

-5

2015

-6

2015

-7

2015

-8

2015

-9

2015

-10

2015

-11

2015

-12

2015

-13

2015

-14

2015

-15

2015

-16

2015

-17

2015

-18

Desktop Tablet Smartphone

Weekly PLA impressions by device type

Shift to Shopping Campaigns

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact . . . But PLA CTR and CPC on smartphones remained consistent . . .

Weekly average PLA CTR by device type Weekly average PLA CPC by device type

Desktop Tablet Smartphone

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

Shift to Shopping

Campaigns

Shift to Shopping

Campaigns

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact . . . Which drove more traffic, but with a sustaining, and then improving, conversion rate. . .

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

Weekly PLA clicks by device type Weekly average PLA conversion rate by device type

Desktop Tablet Smartphone

Shift to Shopping

Campaigns

Shift to Shopping

Campaigns

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact . . . Resulting in increased smartphone orders and substantial increases in share of orders credited to smartphones, even after the GSC transition

Weekly PLA orders by device type Smartphone share of ad spend

Desktop Tablet Smartphone

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2014

-10

2014

-12

2014

-14

2014

-16

2014

-18

2014

-20

2014

-22

2014

-24

2014

-26

2014

-28

2014

-30

2014

-32

2014

-34

2014

-36

2014

-38

2014

-40

2014

-42

2014

-44

2014

-46

2014

-48

2014

-50

2014

-52

2015

-1

2015

-3

2015

-5

2015

-7

2015

-9

2015

-11

2015

-13

2015

-15

2015

-17

Shift to Shopping

Campaigns

Shift to Shopping

Campaigns

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact In total, Google Shopping returned very strong YoY same channel sales growth once the transition stabilized and best practices were re-established

0%

20%

40%

60%

80%

100%

120%

SSS YOY% SSS YOY% PY

Google Shopping Same Store Sales YOY Growth %

#SMX #14b @CommerceHub

A transitional year in review . . Mobile impact Bing also had a good year with SSS growth rates accelerating in Q4

-100%

0%

100%

200%

300%

400%

500%

600%

SSS YOY% SSS YOY% PY

Bing Shopping Same Store Sales YOY Growth %

#SMX #14b @CommerceHub

Second, take advantage of Bing (and surviving CSEs) (and new feed driven discovery sites)

#SMX #14b @CommerceHub

Bing product ads started growing strongly in Q4 2014 . . .

Bing Ads Sales

Total

#SMX #14b @CommerceHub

. . . A lot of that growth was driven by referral traffic from Yahoo! sites

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Bing Ads Sales by Domain

Total %Other % MSN % Yahoo!

#SMX #14b @CommerceHub

Meanwhile, return justified sales and growth remain on select feed driven comparison shopping sites

-60% -40% -20%

0% 20% 40% 60% 80%

100% 120% 140%

Amazon Product Ads eBay Commerce Network PriceGrabber.com Shopzilla

#SMX #14b @CommerceHub

New entrants, especially Polyvore and Pinterest are creating new opportunities

0%

1%

2%

3%

4%

5%

6%

7%

8%

Pinterest rich pin and Polyvore traffic as a % of Google PLA traffic for clients live on both

#SMX #14b @CommerceHub

In short, leverage high quality product data across channels

•  Grow Bing properly allocating effort based on examining traffic and performance by referring site analysis

•  Explore new channel opportunities like Polyvore, Pinterest Rich Pins and Sponsored Pins, Houzz, Wanelo

•  Don’t forget about Amazon Product Ads if you can participate

#SMX #14b @CommerceHub

A test: does more structured product content make a difference? (Hint: yes)

#SMX #14b @CommerceHub

Data quality case study: Publicly traded, multi-channel specialty retailer of casual apparel & accessories, targeting 14 to 26 year olds

»  Product catalog comprises ~40,000 SKUs »  Ambiguous & Incomplete Categories

§  Example: Clearance > Girls Sales > VIEW ALL

§  15% of products were missing merchant category all together

»  Inaccurate & Inconsistent Attribute Values §  The retailers name inaccurately applied as Brand to all products

§  Abbreviated Colors: LTORNG, LTBRWN 237, LT HTHR GREY

»  Missing Key Attributes for Apparel Products §  Gender, Age Group, Material, Sleeve Length and Fit

Decent, but not great

data

#SMX #14b @CommerceHub

Customer Success Story: Increased Attribute Coverage We aggressively extracted attribute data from unstructured elements and added or filled in new structured elements

For example, client data did not have any

fields for gender, age

group, material or pattern. We populated them

#SMX #14b @CommerceHub

The impact was overwhelmingly positive

»  Assortment: 63% increase in active items

»  Searches: 60% increase in distinct search terms

»  CTR%: Increased from 4.34% to 6.16%

»  Traffic: 107% increase in paid clicks

»  Sales: 127% increase in orders

Improved performance

driven by greater listed assortment

but also by a wider “capture basin” enabled

by more keyword search relevance

#SMX #14b @CommerceHub

Another test: do more granular campaign structures perform better? (Hint: yes, but there’s a right balance to hit)

#SMX #14b @CommerceHub

Building out campaign structure to enable tighter bidding and spend management and negative keyword assignments enabled better performance

*Revenue redacted from X axis

#SMX #14b @CommerceHub

One more test: do brand terms in titles matter? Does position in title matter? (Hint: it depends)

#SMX #14b @CommerceHub

Common questions regarding brand and its usage in titles

»  Should brand be in the title?

»  If so, should it be at the front or at the end?

#SMX #14b @CommerceHub

Some findings based on portfolio review

»  If the merchant is the sole seller of the brand – do they need to include the brand in the product title?

§  No -- It may be redundant to have it in the title if they are the sole seller because seller name shows below the price on top placements

§  Yes -- There is a probability that it may help to improve quality score

»  If the merchant is not the sole seller of the brand – do they need to include the brand in the product title?

§  Yes -- Removing brand from product titles generally results in reduced traffic sales.

§  However – For short (i.e. more generic) queries on Google, only the brand of the product typically is shown, not the seller’s.

»  Does it matter if it is in the front or the back of the product title?

§  No -- Tests have not shown conclusive effectiveness

#SMX #14b @CommerceHub

Last observation: get ready for the future, where advertising converges with commerce

#SMX #14b @CommerceHub

Facebook, Twitter, Pinterest are leading a trend of distributed “buy buttons” merging commerce and advertising into a single experience . . .

Pinterest*

Buy

*Speculative mockup

#SMX #14b @CommerceHub

. . . And maybe Google is too (?)

#SMX #14b @CommerceHub

Preparing for a “commerce-like” product advertising landscape: make your advertising channels as robust as your site experience

•  Improve data quality to support needs of 3rd party transactions

•  Child SKU variations need to be right

•  Inventory availability has to be accurate

•  Improve timeliness/frequency of data updates

•  Prepare organizational functions especially fulfillment operations and merchandising

#SMX #14b @CommerceHub

THANK YOU!

Join us @SMX East NEW YORK CITY

Sept. 29th – Oct. 1st 2015