Aaron Goldman, Chief Marketing Officer at Kenshoo, presents on paid search advertisements and paid social advertisements and SIMposium 2012.

1. PAID SEARCH AND PAID SOCIAL:
BIRDS OF A FEATHER OR
DIFFERENT FLOCK?

2. Chief Marketing Officer, Kenshoo
Aaron Goldman
Aaron Goldman is Chief Marketing Officer at
Kenshoo, a digital marketing software
company that engineers global technology
solutions for search marketing, social media
and online advertising. Kenshoo powers 7 of
the world’s top 10 retailers, 9 of the 10
largest ad agency networks, and 23 of the
Fortune 50 companies.
Goldman is a digital marketing veteran with
more than 10 years of industry experience
and the author of Everything I Know about
Marketing I Learned from Google (McGraw-
Hill 2010).

3. Agenda

4. Search + Social = 60% of Online Ad Spend
August 2011 “US Interactive Marketing Forecast, 2011 To 2016”

5. Social Ad Spend Growth Outpacing Search

6. Birds of a Feather

7. Paid + Organic

8. Paid + Organic

9. PPC Auction

10. PPC Auction

11. Precise Audience Segmentation

12. Precise Audience Segmentation

13. Highly Customized Creative Messaging

14. Highly Customized Creative Messaging

15. Continuous Optimization

16. Continuous Optimization

17. Birds of a Feather
1. PPC Auction
2. Precise Audience Segmentation
3. Highly Customized Creative Messaging
4. Continuous Optimization

18. Different Flock

19. Consumer Mindset
vs.

20. Consumer Mindset
Click Rate Distribution Between Paid Social and Search Campaigns
# of Campaigns
Social
Search
CTR

21. Time Spent

22. Time Spent

23. Ad Targeting

24. Ad Targeting

25. Ranking Criteria
High Correlation Between CTR and CPC for Retail Advertiser
CTR %
CPC %

26. Ranking Criteria
Source: SitePosition

27. Conversions

28. Conversions

29. Conversions

30. Metrics
Revenue ROI
Clicks
Purchases
Cost
Downloads
CPL
Conv Rate
CPM
CPC
CPA CTR
Impressions
Revenue/Click Leads

31. Metrics
Revenue ROI Uniques
Clicks Follows
Purchases
Social Impressions
Churn Cost
Video Views CPF
Downloads
Connections
CPL Likes
Conv Rate
Tweets CPM Mentions
Shares
AOV
Retweets
CPC Fans
CPA Share of Voice CTR
Impressions
Social Reach
RSVPs
Engagements Reach
Revenue/Click Leads

32. Different Flock
1. Consumer Mindset
2. Time Spent
3. Ad Targeting
4. Ranking Criteria
5. Conversions
6. Metrics

33. Best Practices

34. The Marketing Funnel
Awareness
Consideration
Intent
Purchase

35. The Marketing Hourglass
Awareness
Consideration
Intent
Purchase
Customer
Repeat
Loyal
Advocate

36. Holistic Strategy

37. Intelligent Campaign Automation
Advanced Keyword Bid Custom Bid
Search Keyword Tool Dimensions Optimization Algorithms
Reporting Path to Multi Channel 3rd Party Support &
Dashboard Conversion Attribution Integrations Training

38. Intelligent Campaign Automation
Budget
Cross-Profile Campaign Hyper-Local Management & Call
Advanced Search Templates Geo Targeting Reallocation Extensions
Google
Objectives Call Conversion Flexible Places/Locations SMB/Reseller
Management Optimization Reporting Integration Support

39. Intelligent Campaign Automation
Social Ads Segment Ad FB Specific Premium Ads
Manager Templates Permutations Algorithms Tracking
Custom Path to
Targeting Multi-Edit, Conversion Support &
Scheduled
Options Copy & Paste Reporting Training
Actions

40. Multi-Channel Attribution
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Ad 1 Keyword 1 Keyword 2 Keyword 3
Most advertising tracking systems report and act on only the
last click prior to purchase

41. Multi-Channel Attribution
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Ad 1 Keyword 1 Keyword 2 Keyword 3
5% 10% 25% 60%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)

42. Multi-Channel Attribution
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Official Site.
Ad 1 Keyword 1 Keyword 2 Keyword 3
40% 10% 10% 40%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)

43. Multi-Channel Attribution
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Official Site.
Ad 1 Keyword 1 Keyword 2 Keyword 3
25% 25% 25% 25%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)

44. Multi-Channel Attribution
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Ad 1 Keyword 1 Keyword 2 Keyword 3
0% 0% 0% 1 0 0 % (Last Click)
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)

45. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

46. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

47. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

48. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

49. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

50. Last Click Attribution Undervalues
Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
• First Only
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%

51. Attribution Simulation

52. Kenshoo Case Study – Search & Social
• Top 100 Internet Retailer running direct response
search and social campaigns, both with positive ROI
• 20% of all conversion paths showed ad clicks from
more than one channel (search and social)
• Over 1/3 had brand queries in the path to conversion
• Consumers discover brand on FB and then search for it by name
Logarithmic Distribution of Keywords in Multi-Channel Conversion Paths

53. QUESTIONS
aaron.goldman@kenshoo.com