We have below republished a recent post from MarketingMag.com.au, written by Tom Skotidas, First Rate’s Head of Marketing and Business Development:

We have always felt that search marketing and performance display were fraternal twins; that is, not identical, but definitely sharing the same DNA.

Think about it: both are built on cost per click (CPC) and cost per action (CPA) pricing models. They require constant testing and optimisation. And they are definitely direct response focused.

It was only a matter of time before both channels were recognised as such, and integration took place.

There are three technologies in particular I want to highlight, which have been successful in integrating search and display. In doing so, they have opened up many new possibilities.

1. Paid Search Video Ads

Google Adwords and Yahoo Search Marketing have released a new type of paid search ad.

They are called Google Video Extensions and Yahoo Rich Ads in Search, and allow advertisers to integrate video content within their standard text ads.

The importance of this integration is two-fold:

• Consumers are empowered with richer information about the product they are viewing, and
• Advertisers can build their brand awareness as they drive direct response.

The last point is especially important for industries that have traditionally not invested significant ad dollars into paid search. For example, the FMCG industry is well known for its light adoption of search marketing. With video ads, they can now satisfy their brand awareness-building requirements while driving traffic to their product websites.

Google Video Extensions are in limited beta mode and not currently available in Australia. However Yahoo Rich Ads are currently live in Australia, and have already received significant interest from advertisers.

2. Cross-channel, Multi-Click Conversion Attribution

We know that consumers don’t usually convert into a lead or sale after just one click. A more likely scenario involves a consumer searching, viewing, and clicking on several ads, often over the course of days or weeks, before they convert.

The ability to track and de-dupe conversions across channels (so you are not paying twice for the same conversion) is powerful, and currently available through advanced analytics platforms, like Omniture or Site Intelligence.

The problem with last click attribution

The problem lies in the conversion rate disparity between search and performance display. Compared to display, search almost always converts at a higher rate, and very often captures the last click. So paid search often takes the credit for the sale – even though display had generated an earlier click in the consumer’s journey.

Because of the last click attribution model – which is the standard in our industry – investment in performance display is usually just a fraction of search, which prevents full integration and synergy of channels from taking place.

Multi-click conversion attribution

There is a new technology that is solving the issues associated with last click attribution. It is allowing marketers to track all clicks across multiple channels, and recognise their collective contribution to the conversion. This technology is called multi-click conversion attribution.

Multi-click conversion attribution captures all of a consumer’s clicks within all channels, which took place before a consumer converted into a lead or sale. The technology then assigns a % conversion credit to each of the clicks and channels.

This is equivalent to giving a % goal credit to each player in a football team, for passing the ball around until a goal takes place.

Interestingly, the multi-click attribution model always takes a chunk of credit away from the last click (as it should), and distributes that credit among the rest of the clicks that contributed to the conversion.

Multi-click conversion attribution has profound implications for marketers investing in search and performance display. It allows marketers to:

1. ‘See’ each click and channel, and how they interact.
2. Determine performance display’s true contribution to producing conversions (instead of missing out on the last click which is often captured by paid search), and
3. Identify the true CPA of paid search and performance display.

What is the biggest benefit to marketers? Once true CPA is identified, re-allocation of channel budget can occur with full confidence. This drives incremental sales while saving money (less wastage on poorly performing keywords, banners or sites).

3. Demand side platforms

Demand side platforms (DSPs) are a technological innovation in the field of performance display. Although currently not available in Australia, they are quickly becoming mainstream in the US.

DSPs are technology tools that aggregate the inventory of multiple publishers and ad networks, and then allow advertisers to bid on this inventory in real-time. What’s more, this real-time bidding is done on a per impression basis.

The parallels to paid search are clear. And it is these parallels that have fuelled even further technological innovation.

Several SEM bid management and optimisation platforms (i.e. technology platforms that bid exclusively on paid search), have recognised the efficiency and business potential in integrating DSP within their own SEM platforms.

Examples of leading SEM technology firms that have integrated DSPs within their own platform include SearchIgnite and Efficient Frontier.

What does this mean? Well, it appears that within the next 12–24 months in Australia, marketers will be able to bid on paid search and performance display, in real-time, per impression, all within the same dashboard. This is a compelling proposition if you are trying to maximise performance, efficiency and integration across both channels.

Final thoughts

The technologies mentioned above represent the next-generation approach to integrating paid search and performance display. And while they might not yet be widely used or understood in Australia, their growth in the US and UK are certain to make them mainstream in the near future.

Marketers who recognise this and take steps to prepare themselves, will be in a superior position when that moment arrives.

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First Rate uses SearchIgnite to drive client ROI for search engine marketing campaigns, as well as deliver increased performance from the total digital media spend using conversion attribution across all digital media channels.

First Rate has partnered with SearchIgnite, a company that works with a variety of marketers across all online channels including email, display, social media and search.

One SearchIgnite client in particular has enjoyed incremental success with its online bookings, increasing from 14-20% before 2006 to 70% at present. However, a key element that was missing from their strategy was an understanding of the contribution each channel makes across the entire click path, with a specific focus on understanding generic keywords that initiate or assist a conversion and using these insights to maximize ROI. This client faced a number of key challenges and partnered with SearchIgnite in order to find a solution.

Multiple Platforms to Track all Media Channels
Marketers often report the same conversion multiple times as a result of using separate tools for tracking across different channels, e.g. an analytics tool for post-click conversions and DART for Advertisers (DFA) for display post-view conversions. In the SearchIgnite conversion attribution case study featured in this blog post, the client’s conversions were being tracked multiple times and with no ability to “de-dupe.” It was therefore difficult to get an accurate depiction of the contributions of each channel and took a drawn out process to identify their real marketing ROI. This made it challenging to allocate budgets most effectively across channels.
 

Understanding the Consumer Journey across all Channels
Most online marketers give all credit to the last click or exposure that lead to the conversion – the approach known as “last click attribution.” When using this method, multiple clicks may occur from a user across the same or multiple channels, but only the last one that resulted in the action or booking gets credit – this is common practice because most technologies do not offer the ability to track and optimize multiple clicks across channels.

When all credit is given to the last click that resulted in a conversion, marketers run the risk of moving budget away from channels and keywords that may have actually been critical in moving the consumer to convert, earlier in the decision process.
 

Finding the correct Attribution Model
It is very difficult to pinpoint the correct attribution model to each media discipline. To do this many different scenarios needed to be run to see the impact it would have had on the number of conversions and revenue on each channel, down to keyword level.
 

Generate Insights that allow Real-Time Optimisation
Most analytics tracking tools provide the data, but don’t give insights on cross-channel interactions or use it to optimize paid search keywords effectively using bid management rules in real time. Additionally, many tools do not provide the consultative service, support and client-relevant analysis needed to use this data effectively.

After a thorough technology audit of its marketplace, the client opted to use SearchIgnite technology. This selection was particularly due to advanced attribution technology to meet these challenges and optimize their online spend across all channels. Other key reasons for selecting SearchIgnite were:

• Advanced search, email and digital media tracking platform

• Cross-channel media insights on exposures which assist sales to understand user exposure paths

• Use of insights and ability to perform attribution analysis based on marketing goals upon request

• Use of data for budget allocation and optimization

• Ability to use combination of rules based and portfolio bid optimisation

SearchIgnite’s advanced search and digital media attribution platform allows marketers to see the entire click path across all channels leading to the conversion and use this data for optimization. When considering allocating online budget, clients using SearchIgnite are able to see multiple clicks across their paid search, natural search, display, affiliates, and email. In addition, SearchIgnite, working alongside its world-wide partners including First Rate, provide support to perform attribution analysis and recommend a custom weighting method specific to individual clients and marketing goals.

SearchIgnite’s 5 Step Approach to Maximise Revenues Across Digital Channels

STEP 1 – Analyze the number of touch points in the online marketing mix and understand the full interactions of all channels
From the initial analysis it was found that 64.6% of paths had more than one click or exposure and that more than 50% of the client’s customers were interacting on more than one media channel before converting. The average number of exposures before conversion was 3.4 across all channels. The key insights found were that:

• 42% clicked on a PPC ad and booked with no other channel involved in the booking

• 52.1% clicked on organic search then a PPC ad and made a booking

• 4.8% viewed a display ad then clicked on a PPC ad and made a booking

• 0.4% clicked on a display ad and then a PPC ad and made a booking

The decision making process on which scenarios should be run was based on the amount of interaction there is between the channels.

STEP 2 – Define Channel Prioritisation
SearchIgnite enables advertisers to let specific channels take pre-determined priority over other channels, which means that clicks or exposures won’t get any credit over channels which are in higher tiers (set by the client).

To each channel, we defined the value of an impression and reviewed:

• Display clicks over display views
• Organic search and email channel priorities over paid media channels
• Display view look-back window
• Display view weight

More information: SearchIgnite’s v4 release.

All attribution settings had been reviewed based on the current competitive landscape, TV, above the line campaigns and ad creatives. Importantly, settings can be varied seasonally.

STEP 3 – Distribution
SearchIgnite enables advertisers to move from a last-click ad exposure distribution to a customized distribution model. A key USP of the SearchIgnite technology is that clients can analyze 60 days worth of data through various scenarios to see what would have been the impact on bookings and revenue.

Using a different range of distribution models, the client compared this against the traditional last click attribution to evaluate the most accurate distribution model. As a result, campaign settings were altered and realigned to the right distribution model. This is based on the number of bookings and revenue allocated to each channel, campaign, placement and search keyword.

STEP 4 – Insights
Finding the best suited weights is often an iterative process of viewing how credit is distributed and the logic behind whether or not it best suits the dynamics of the business. With the new tier prioritization, channel settings and distribution model, the client observed a significant shift in the balance of revenue attributed between paid search and organic search.

STEP 5 – Apply Insights to Optimize Through SearchIgnite’s Portfolio Optimization Technology
After three months of testing, new attribution settings were selected and a new, custom distribution model was built for the client. In addition, SearchIgnite implemented bid rules using proprietary portfolio optimization technology (SPOT). Budgets allocated to each of the channels and campaigns were reviewed more accurately due to being able to eradicate duplicate bookings and re-attribute conversion data. Visibility on generic keywords and brand has been increased, which has resulted in a decrease in CPC and an increase in revenue.

SPOT’s prediction and optimization engine is driven by non-linear statistical modelling and other advanced mathematical techniques to find the optimal bid for each keyword across multiple search engines. SearchIgnite dynamically allocates a client’s budget across their portfolios of keywords based on business goals. SPOT’s technology then closely monitors click-through and conversion rates, adjusting results consistently based on real-time findings. More info: PPC bid technology case study.

Results

Significant year-over-year improvements in CPC, ROI and revenue were generated, resulting in increased confidence that the online advertising budget is being tracked, attributed, measured and spent more accurately to optimize ROI. The key performance indicators saw the following results, with a 4% decrease in paid search spend:

• 14% decrease in CPC
• 28% increase in overall bookings
• 43% increase in overall revenue
• 54% increase in ROI

About SearchIgnite
SearchIgnite is a leading provider of paid search and performance media optimization solutions that enable large, sophisticated marketers to achieve their online goals faster and smarter. The company’s media platform gives advertisers an advanced suite of tools to manage, optimize and report on their paid search campaigns in one central dashboard. In addition to saving time and achieving their paid search goals, marketers who use SearchIgnite have the ability to gather insights into the relationship between media channels, enabling them to spend smarter. Some of the world’s leading brands and advertising agencies depend on SearchIgnite technology to power their online campaigns.

For more information on SearchIgnite’s PPC bid management and digital media performance optimisation technology, please contact First Rate.

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First Rate’s Consulting Director, Samuel Stadler, spoke on Performance Branding at the Advertising & Marketing Summit 2009, “Tough times – Tougher Tactics”, at Luna Park this week.

Samuel’s presentation focused on the following aspects of Performance Marketing:

• What is Performance Branding?
• Performance Branding using Search Engine Marketing (SEM)
• Performance Branding using Search Engine Optimisation (SEO)
• SEM provides a performance benefit for SEO
• The synergies between Search and Display
• Display / Performance Online Advertising

Here the full list of speakers and topics presented at the Advertising and Marketing Summit 2009:

Day 1

• ‘The Future isn’t what it used to be – How the role and relevance of advertisers is changing with the challenge’ - Chuck Porter, Co-Chairman, Crispin Porter + Bogusky (USA).
• ‘Brands should be great storytellers’ – Ivan Wicksteed, Global Creative Director, Coca-Cola (USA)
• ‘The view from the boardroom – Why marekting is more important than ever’ – Bruce Buchanan, CEO, Jetstar
• ‘Marketing the Best job in the World’ – Anthony Hayes, CEO, Tourism Queensland
• ‘Breathing life into Woolworth’s Brand’ – Luke Dunkerley, GM Marketing, Supermarkets & Corporate, Woolworths Limited
• ‘Expanding the Conversation: A better way to converge with the wider creative world’ – David Nobay, Creative Chairman, Droga5 Australia
• ‘Facebook and harnessing the power of social media: How marketers can leverage the social media platform in a unique and different way’ – Paul Borrund, Regional Vice President, Facebook
• ‘The Power of 2: Creating a Rhapsody in Red’ – Tara Lordsmith, GM Marketing, Simplot and Ant Shannin, Executive Creative Director, Grey Worldwide.
• ‘Opportunities in the Mobile Society’ – Greg Walters, Founder & CEO, QPay
• ‘Competing for Consumer’s Time: The Challenges of Marketing Cricket’ – Luke Bould, Commercial Marketing Manager, Cricket Australia
• ‘Reel Good not Feel Good’ – Craig Maclean, Brand Manager – Cascade, The Foster’s Group

Day 2

• ‘Where Next for Australia’s Digital Community?’ – Richard Freudenstein, CEO, News Digital Media
• ‘Better Targeting through better Understanding’ – Rohan Lund, CEO, Yahoo7
• ‘How digital gets you more when you need it most’ – Jack Matthews, CEO, Fairfax Digital
• ‘Becoming more intimate with your audience’ – Joe Pollard, CEO, Ninemsn
• ‘The Mitchell Prediction | What 2009 holds for Australia’s Media Future’ – Harold MItchell AO, Executive Chairman, Mitchell Communications Group
• ‘The LEGO Brand Universe: From the child on the floor to the user online’ – Jacob Kragh, Chairman of Global Marketing Board, LEGO (Denmark)
• ‘Linking Brand Strategy and Shareholder Value’ – Amanda Johnston-Pell, Executive Director of Brands and Marketing Communications, Telstra Corporation
• ‘Valuing Marketing in Challenging Times’ – Joe Talcott, Director of Marketing, News Limited
• ‘Repositioning for tougher times’ – Andrew Seager, GM Marketing, Westpac
• ‘Developing your competitive intelligence to drive a strategic advantage’ – John Batistich, GM Marketing, Westfield

First Rate consultants at the Advertising & Marketing Summit 2009 – Celebrating in style (inside a Hummer Stretch limo).

Looking for more information on how to grow your marketshare with performance-based marketing tactics…? Please visit our page on Performance Online Advertising.

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Australia has recently elected a new Government and with it a new Prime Minister. Russell Brown from Public Address raises the impact online advertising had on Australian election campaigns in a recent post:

…There will be debate about exactly what lessons can be taken into New Zealand’s election campaign next year, but there is no doubt about one thing: the internet will be important. Kevin Rudd, famously, has 20,000 friends on Facebook, and his Kevin07 website was a masterpiece of online momentum-building. The campaign ads that ran on Australian news websites were numerous and increasingly biting.

As the Electoral Finance Bill caps third-party campaign spending in particular, internet advertising will look both smarter and more cost-effective. The full-page newspaper ad your lobby group buys is tomorrow’s fish-and-chip wrapper — but the same money could buy you a pervasive campaign online. Just watch.

We nod furiously in agreement with Russell’s thoughts. Highly-targeted interactive advertising that chooses its audience, the time of day and where on the page it appears is a no-brainer when it comes to dollar-for-dollar value. Especially if you’re having to watch your advertising budget.

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Released on: October 24, 2007, 7:24 pm
Press Release Author: Tom Skotidas

Industry: Advertising

Press Release Summary: Yahoo! Search Marketing and online marketing agency First Rate have gone into partnership to distribute Yahoo!’s sponsored search listings across First Rate’s online advertising network.

Press Release Body: Yahoo! does ad deal with First Rate

Yahoo! Search Marketing and online marketing agency First Rate have gone into partnership to distribute Yahoo!’s sponsored search listings across First Rate’s online advertising network.

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