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welcome to



                                           #criteoboom




THE VALUE OF CLICKERS
– OCTOBER 2012                                           1
Patrick Wyatt, Head of Business Intelligence, CRITEO
WHAT IS
BIG DATA?



            2
3
Definition:

Being able to store and use
limitless amounts of data



                              4
BIG DATA
             ANALYTICS

                         REAL-TIME
                         BIG DATA




DECODING THE HUMAN
 GENOME IN 10 DAYS



                             CRAWLING 50B WEB
                                  PAGES



                                                5
Our Big Data Question:

 The Display Industry
   & the Value of
      Clickers

                         6
comScore’s Natural Born
               Clicker
  “Earning                 “Younger
  less than                browsers”
  $40,000”




                             “Downscale”
 “Clicks have
   near zero
correlation with
 conversion”
                              “Natural
                                Born
                              Clickers”


                                           7
comScore’s Report Changed Minds

“Half of All Display Ad Clicks are Worthless”
                            -Seeking Alpha, 2009


“50% Drop in Number of US Internet Users Who Click
on Display Ads”          -ComScore 2011


          “Conversions, Not Clicks, Key To Display Ads”
                         -MediaPost, 2012


                                                          8
Can we use Big Data to test this
         hypothesis?



                                   9
BIG DATA, BIG PANEL




500K Users    2 Millions Users




                                 147 Million Users

                                                     10
110M Sales
  …worth
Clickers Non-
  $11BN  Clickers



                         11
                    11
•   Nobody clicks on ads anymore

•   People who click don’t buy

•   Most Clicks are made by a few users


                                          12
“Nobody clicks on ads anymore”




                                 13
‹#›
‹#›
“People who click don’t buy”




                               16
Reality 2 : Clickers buy 3X more
  frequently than non clickers




                                   17
“Most Clicks are made by a
        few users”




                             18
10% of Criminals
Commit 50% of all Crimes

                           19
10% of Taxpayers
Pay 70% of all Income Tax

                            20
Reality 3: Half of Clicks and Sales are
        Made by 20% of Users




                                          21
Almost Half of regular
  buyers are clickers


Clickers buy 3x more
than non-clickers




                           22
Conclusion:

People who click on Ads want to
buy things

(Obvious, really)


                                  23
So why did clickers get such a
hard time?



                                 24
I’m a 30-year-old
British male who      wants
to go to New York



What Ads Did I See?


                              25
Effective   Ineffective




                          26
RIGHT
RIGHT USER
             +   MESSAGE   +   RIGHT TIME




             Buyers click
                                            27
Thanks to Big
Data, Display Ads are
now doing something
that search ads have
done for the last 10
       years…



                        28
A $20 BN Opportunity
     for Display

                  Search:
                  +1600% Growth
                  5% Of Time Spent
                  Online



                  Display:
                  +300% Growth
                  95% Of Time Spent
                  Online




                                      29
Big Data… comes in two flavors :


1. Analytics: Big Data Analytics tells us
   about the true value of clickers

2. Real-Time: Real-Time Big Data is now
   enabling Display Ads that are worth
   clicking on


                                            30
Big Data…
• Comes in two flavors – Analytics and
  Real-Time
• Big Data Analytics tells us about the
  true value of clickers
• Real-Time Big Data is now enabling
  Display Ads that are worth clicking on


                                           31

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Criteo's Ad Week 2012 presentation - Big Data and the Value of Clickers

  • 1. welcome to #criteoboom THE VALUE OF CLICKERS – OCTOBER 2012 1 Patrick Wyatt, Head of Business Intelligence, CRITEO
  • 3. 3
  • 4. Definition: Being able to store and use limitless amounts of data 4
  • 5. BIG DATA ANALYTICS REAL-TIME BIG DATA DECODING THE HUMAN GENOME IN 10 DAYS CRAWLING 50B WEB PAGES 5
  • 6. Our Big Data Question: The Display Industry & the Value of Clickers 6
  • 7. comScore’s Natural Born Clicker “Earning “Younger less than browsers” $40,000” “Downscale” “Clicks have near zero correlation with conversion” “Natural Born Clickers” 7
  • 8. comScore’s Report Changed Minds “Half of All Display Ad Clicks are Worthless” -Seeking Alpha, 2009 “50% Drop in Number of US Internet Users Who Click on Display Ads” -ComScore 2011 “Conversions, Not Clicks, Key To Display Ads” -MediaPost, 2012 8
  • 9. Can we use Big Data to test this hypothesis? 9
  • 10. BIG DATA, BIG PANEL 500K Users 2 Millions Users 147 Million Users 10
  • 11. 110M Sales …worth Clickers Non- $11BN Clickers 11 11
  • 12. Nobody clicks on ads anymore • People who click don’t buy • Most Clicks are made by a few users 12
  • 13. “Nobody clicks on ads anymore” 13
  • 16. “People who click don’t buy” 16
  • 17. Reality 2 : Clickers buy 3X more frequently than non clickers 17
  • 18. “Most Clicks are made by a few users” 18
  • 19. 10% of Criminals Commit 50% of all Crimes 19
  • 20. 10% of Taxpayers Pay 70% of all Income Tax 20
  • 21. Reality 3: Half of Clicks and Sales are Made by 20% of Users 21
  • 22. Almost Half of regular buyers are clickers Clickers buy 3x more than non-clickers 22
  • 23. Conclusion: People who click on Ads want to buy things (Obvious, really) 23
  • 24. So why did clickers get such a hard time? 24
  • 25. I’m a 30-year-old British male who wants to go to New York What Ads Did I See? 25
  • 26. Effective Ineffective 26
  • 27. RIGHT RIGHT USER + MESSAGE + RIGHT TIME Buyers click 27
  • 28. Thanks to Big Data, Display Ads are now doing something that search ads have done for the last 10 years… 28
  • 29. A $20 BN Opportunity for Display Search: +1600% Growth 5% Of Time Spent Online Display: +300% Growth 95% Of Time Spent Online 29
  • 30. Big Data… comes in two flavors : 1. Analytics: Big Data Analytics tells us about the true value of clickers 2. Real-Time: Real-Time Big Data is now enabling Display Ads that are worth clicking on 30
  • 31. Big Data… • Comes in two flavors – Analytics and Real-Time • Big Data Analytics tells us about the true value of clickers • Real-Time Big Data is now enabling Display Ads that are worth clicking on 31

Notas del editor

  1. But fundamentally, it’s something very simple
  2. Since we’re now in the domain of market research, I wanted to show off about the size of the Panel that we’re using for our study.We took all the people who saw one of our ads during 1 week – they numbered 147M unique browsers. Then we looked at the shopping and clicking behaviour of these same browsers over the course of Q1 2012. We examined a set of “Myths” taken from the Comsore papers, and confronted them to the results from our panel.
  3. Wrong, again. In our panel, clickersbuy 3x more frequentlythan non-clickers.
  4. The conclusion I draw from this is that if you show someone the right Ad, then they might click on it, and if they do, it’s because they want to engage with your products or services. Put that way it is really quite obvious.The right ad means showing an ad to the: Right User: one who has expressed an interest in your products, or might be susceptible to them (that’s targeting).It means the right message - a offer that might interest him (that’s Dynamic Creative)…. And it means the right place – the Ad has to be in a visible position on a high quality publisherIf you get all this right, then your ad should have a CTR of at least 0.5%, and the clicks that you get will be valuable expressions of purchase intent.Buyers click on on good ads