1. Opportunities for optimization in digital Возможности оптимизации в digital для повышения эффективности расходов

2. Agenda  Economic context  Optimization opportunities in digital  Marketing Automation

3. Economic context Marketing budgets in context of current economic conditions

4. Context: Marketing budgets and focus  Budget trends mixed, depending on industry  Reactionary reductions in spend (demand, costs)  Preemptive cautionary cuts (costs)  Budget shifts to digital (costs, efficiency)  From business expansion to business sustainment?  Financial institutions leverage digital for PR campaigns to emphasize stability in reaction to fast changing conditions  B2B and IT retail promote credits / discounts

5. Context: advertising in Russia

6. Context: online trends  PricewaterhouseCoopers, Sep 2008 identified a “trend towards performance- based advertising is expected to accelerate in the downturn, putting pressure on display”  Search (benefits from its ability to demonstrate clear return on investment) vs.  Display (focus on brand advertising and limited measurability)

7. Context: marketing focus  The question for many is not “how much budget”, but where and with what objective?  “How much” should be derived from analyzing needs and making tradeoffs  Clarity on objectives is critical (traffic, conversions, ROAS/profits, PR, brand awareness, …)

8. Context: Russian advantage?  A: Know how to work and play hard  B: Good-looking and well-educated  C: Come into digital later in the game  D: All of the above

9. Optimization opportunities in digital for maximum campaign performance

10. Opportunities in digital marketing  Optimization of creative (banners, site usability, organic and paid search)  Optimization of marketing spend within a channel (paid search, day parting, targeting)  Optimization across online and offline channels (media planning based on campaign objectives and performance)

11.  Optimization of creative: online display

12. Creative optimization: banner anatomy Copy Calls to Action Placement Picture Size Landing Page

13. Creative optimization: from standard banners to rich media 0.07 - 0.15% 0.50 - 1.08% USRussia  Rich media on the path of 98% of conversions!  82% of the last impressions viewed before the conversion were Rich Media

14. Creative optimization: A/B Testing Project X Landing Page TreatmentClicksConversionsConversion Rate Treatment A5496812.38% Treatment B403389.43% Treatment C………  One change at a time  Small changes - Big differences  Testing two very different creatives  Clicks don't exist in a vacuum! A B Landing Page

15.  Optimization of creative: site usability

16. Creative optimization: site usability  Poor navigation  Irrelevant information  Broken checkout  … Landing Page Conversion pages  Conversion rate

17.  Optimization of creative: organic and paid search

18. Optimization of search creative: Search = SEO + SEM

19.  SEO – Organic/Natural Positioning  Site indexing (code, structure)  Relevancy index optimization (site content)  275+ variables that affect positioning  Long term approach  Cost efficient investment  SEM – Paid/Contextual - Performance driven  Placement creative  Buy relevant search queries  Contextual & short term / mid term driven  Managed costs - “You pay for what you get” Optimization of search creative: Search = SEO + SEM

20.  49% of consumers change brand after search  67% of searchers were influenced by offline  63% of search related purchases happen offline  16% of shopping spend online (up to 5% in Russia)  50% increase in online sales  85% of web traffic started with search US/EU statistics Optimization of search creative: Case for search

21.  Optimization of marketing spend within a channel

22. Spend optimization: paid search  Maximizing to an objective metric within given constrains and budget  Making tradeoffs between spend, volume, and efficiency Example:  Objective: increase #acquisitions (conversions)  Constraints: CPA, budget, min position

23. Spend optimization: paid search  Keyword based optimization vs. portfolio  Click path analysis (first vs. last)  Brand/generic – long tail dynamics  Multi objective optimization – tradeoffs Objective Budget Kwd constraints Efficiency constraints

24. Spend optimization: paid search CPC = 0.12 Clicks = 2000 Volume / Efficiency Tradeoffs

25. Spend optimization: paid/organic optimization  If my site is in position 1 in organic search, do I need to spend on paid search? And if yes, how much?  It depends on campaign objective and budget constraints  Is budget a constraint?  Is brand awareness an objective?  Measure results and optimize!

26. Spend optimization: day-parting  All digital channels: search, email, display, mobile  Finding time-dependent trends  Month of year  Week of month  Day of week  Hour of the day  Fine tune spend based on identified trends  Valuable technique, but does not work in all cases (lack of data, changing conditions)

27. Spend optimization: targeting  Targeting mechanisms:  Geographic  User profile (CRM, preferences)  Behavioral  Channels: search, display, email, mobile  Again, measurement is key

28.  Optimization across channels (online and offline)

29. Optimization across channels  Integration of online and offline enables holistic marketing campaigns  Some enabling technologies:  QR codes, bluetooth / mobile  Integration with call centers and CRM for day parting  Rationale to substantiate spend allocations based on better measurable traditional media campaigns

30. Optimization across channels  Integration of print and mobile using QR codes  Measurable print campaigns  Basis for further optimization

31. ptimization landscape $ OnlineOffline SearchDisplayMobileTV OrganicPPC PrintOOHRadio ?? Other Creative Landing Page Conversion pages Clicks Site Creative Conversions Spend Channel CRM / Call center Back office Analytics Sales Client systems Channels 3 rd party Tracking Search Impressions, clicks, conversions costs, revenue, custom data … 3 rd party

32. Automation of marketing to drive efficiencies

33. Automation: technologies  Ad serving & Tracking  Measurement & Analytics  Reporting  Other technologies: rule-based engines, statistical analysis, neural networks, NLP, genetic algorithms  Integration between marketing systems  Data exchange standards  Integration interfaces

34. Automation: analytics  Wordcatcher tool is used to conduct analysis on competitive rankings and keyword selection  Supports Russian language and Yandex

35. Automation: paid search analytics  Click2Sales is a bid optimization and campaign management tool that supports  ROI-based portfolio optimization  Rules-based keyword management  Day/time-parting  Unicode standard  Tracking  The tool supports optimization and bidding on Google, Yahoo, MSN and Baidu platforms, Yandex and Rambler planned  Reporting interface

36. Automation: analytics  SEO analytics tool  Tracks site positioning  Benchmarks against competitors  Watch for best opportunities in natural positioning

37. Automation: reporting  Marketing Console offers integrated reporting for all online media campaigns  e-commerce  display  SEM & SEO  affiliate programs  recruitment campaign  mobile  …  Where you can track  audience  conversions  bookings  leads  ROI

38. Automation: reporting  Detailed channel specific views, including online advertising and paid search  Cross channel consolidated results  Media budget forecasts  Comparisons to goals and forecasts  Key indexes, monitoring and triggers  Filters, region / business unit

39. Automation: Benefits to clients  Faster response to market changes  Objective driven, measurable campaign performance  Rationale to allocate spends based on results  Results-driven media planning  Transparency through reporting

40. Automation: Marketing analytics  Emergence of marketing analytics as core marketing discipline  Why?  Consumer focus: pull vs. push marketing  Performance driven spend  Marketing is not limited to advertising

41. Broader marketing opportunities  Remember the good old marketing mix?  Company, Customer, Competitors  Product, Price, Promotion, Place  Advertising touches most areas, but not all  Marketing Analytics enable holistic approach  Define objectives  Track and measure applicable metrics  Make judgments against objectives  Optimize and automate campaign adjustments  Communicate to consumers, suppliers, partners

42. Questions? Sam Der-Kazaryan sderkaza@digitas.com +7 916 301 7586 Thank you!