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

I 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.

Related Posts:

• Increasing the Performance of your Digital Media Spend with Cross-Channel Conversion Attribution
• New SearchIgnite 4.0 Driving Increased SEM Performance for First Rate Clients
• Do you want better results from your Paid Search?
• First Rate Announces Exclusive New Zealand and Australian Partnership with SearchIgnite

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.

Related Posts:

• The Integration of Search Marketing and Display Advertising
• New SearchIgnite 4.0 Driving Increased SEM Performance for First Rate Clients
• Do you want better results from your Paid Search?
• First Rate Announces Exclusive New Zealand and Australian Partnership with SearchIgnite

Banner ads, Facebook ads or Google AdWords…where should you be placing ads to gain the highest level of ROI?

Find out how to map out your online advertising schedule, what it all costs and what will work better for you.

Grant Osborne, First Rate’s Director of Strategy & Performance, spoke at EMA Northern on how to get the biggest bang for your buck with your online advertising spend:

• Top 10 Tips to mapping out your online advertising schedule
• Aligning your audience, call to action and conversion paths
• Costs, benefits and improving ROI

Interested to know more? Download the presentation now: Online Advertising ROI.

Related Posts:

• Actions, not eyeballs: New Zealand Performance Online Advertising
• Interview with The Independent: Online Performance Advertising
• Online Advertising: Are NZ advertisers really receiving the best service from their agencies..?
• Significant growth continues
• Paying for Action

The Performance Network has been featured in the May/June edition of New Zealand Marketing magazine.

Actions, not eyeballs - The Performance Network (TPN) is bringing a new level of accountability to online advertising: We have included a relevant graph lifted out from the article, below (source: IAB)

Feel free to download the 2 page article on NZ online advertising. (PDF)

Related Posts:

• Advertising Online: Get More Bang for Your Buck
• Paying for Action
• The Performance Network continues it’s Growth
• The Performance Network

These days, shopping online is the easiest way to grab those essentials or max out your credit card on luxury items that you ‘need’ to order a week before payday! DVDs, games, clothes, concert tickets…. we’ve bought them all – but what’s next? Cars, boats and houses..?

According to reports by Google and Ispos MORI, the internet plays a dramatic role in the purchase of a new or used car. In 2009, Google announced that 80% of new car buyers start their search on the internet and from this, 69% started that search using a search engine. Whatever happened to walking down to your local car dealer, who you’ve dealt with for years, and picking the newest model off the showroom floor based on your dealer’s advice? The only decision you had to make was whether you wanted it in black or silver! In our consumer obsessed society, manufacturers are now engaged in a tougher battle for your custom; simple advertising methods such as billboards and TV advertising are failing to make us drive up to our local garage to pick up our new dream machine.

Further to First Rate’s own research into New Zealand consumer search trends for cars, according to Google the automotive buying cycle for new cars takes an average 5 weeks from initial research to final purchase of the vehicle, and often it can take up to 12 weeks (2008/2009 data). During this period, 55% of buyers switch brands, 62% are undecided on which make of car and 69% remain undecided on which model.

What can we take from this data?

As a marketer it is essential that you ensure your brand is visible throughout the entire buying cycle. Unlike an e-commerce store selling DVDs, it is impossible to use tracking software such as Google Analytics, or even sophisticated cross-channel conversion attribution tracking, to track whether or not a consumer buys a car – offline.

In similar vein, with almost half of consumers changing their mind in the buying cycle and starting their research again, when are you going to allow your brand to drop out of the process?

How to Reach New Zealand Car Buyers Online

YouTube – Video consumption is up 237% year on year and YouTube is now the second largest search engine after Google. Don’t miss out on an ideal opportunity! With 54% of new vehicle buyers reportedly going online to view a video… have you got yours up there? Below is a graph of where auto enthusiasts use their time online to view car videos:

Search Engines – As previously mentioned, 80% of new car buyers are going online in order to purchase a car, where do you fit in? Make sure you get the relevant free traffic with a well ranking website that has been optimised for search engines (SEO).

Paid Advertising – Yahoo, Google, Facebook, all allow enhanced visual campaigns to support your offline marketing. You no longer solely need a static “information/contact only” website. Ensure your car dealership has their online showrooms and TV ads well supported online through the use of image, video and text ads across a variety of channels. Facebook Ads and Google Advertising (Adwords) are an absolute must these days for any car dealership wishing to reach today’s consumers!

Related Posts:

• How to Gain an Unfair Advantage in Search Engine Advertising
• Google Advertising – Optimisation Tips from First Rate