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iClick Interactive Asia
          Performance Marketing Platform
          through Optimization and Algorithm




          Ricky Ng
          March 2012

Nov2011
Who Are We?

• The leading optimization platform in Asia
• Over 800 advertisers from SMEs to Fortune 100 companies
    – Finance and Banking: Citibank, DBS, eTrade, eMoney, American Express
    – Hotel and Travel: Disneyland, Hilton Hotel Group, Travelzen, Wynns, AirAsia
    – E-commerce: Dangdang, Amazon CN, Vancl, M18, Lane Crawford,
      Strawberry.net
    – FMCG: Estee Lauder, DKSH, Abbott, Revlon
• Baidu Exclusive partner in Hong Kong, Macau, Taiwan, Singapore,
  objective to bring foreign brands and corporate to China
• Optimize over US$100M online ad spend through our proprietary
  technology
    – 70 millions keywords
    – 5 millions models processed everyday
    – 4 terabytes click log data
• Real-time data integration with major publishers in the region
    – SEM & Display: Google, Yahoo!, Microsoft and Baidu
Marketer’s Pain

 In the complex online media
 landscape today, how to deliver
 a right ad in a right medium
 at a right time to gain
 sustainable ROI?
The Evolving Digital Landscape

           1996          1998          2005       2011 
           Direct Media   Rising of Ad   Ad          Demand-side
           Buy            Network        Exchanges   Platform




Example:
Our Unique Approach
     Demand                                              XMO                                             Supply
                                            (“Cross-Marketplace Optimizer”)
    Advertisers/                                                                                        Publishers /
    Objectives              • Single tracking pixels                                                     Channels
                            across platforms                             • Over 12 types of
                                                                                                          Search
Branding                    • Real time data                             categorical data models
              Cost-per-     synchronization                                      • Cross platforms
               Lead         with major                                           data modeling
                            publishers
Acquisition                                      1. Tracking    2. Data                                   Display
              Cost-per-                           and Data     Mining and
              Acquisition                        Collection    Modeling
 Regional
              Cost-per-                                                                                    SNS
               sales

  Local
                                               4. Automated    3. Analytics
               Maximize
              Conversion                       Optimization        and                                    Mobile
 Small-                     • Dynamic
                                                                 Insights           • Full conversion
 medium
                                                                                    path analysis
                              budget allocation
              Maximize                                                        • Conversion funnel
               Click        • Retargeting
                                                                              and cycle analysis
                            capabilities
Campaign-                                                                     • Industry conversion
                            • Market turmoil control                                                        Blog
  based                                                                       standard

     and more…
     and more…                                                                 5
                                  Increased efficiency in matching demand and supply
Consolidated Buying

         Data
         Data                                 Audience                         Inventory
                                                Ad Server

                       IP                       Data
                                                  +




                                                            Media Exchange
                              Data Exchange
                                                Media
                      Boom                        +
                                               Creative
                                                  +
                                                Rules
                      Sync




    Smarter Target
     Smarter Target                                                          Smarter Reach




6                           Real Time Bidding (RTB)
The Ecosystem is Changing
Introducing XMO

              1                                 2                                  3
                                                                          “Achieve On-going,
     “Efficient, ROI driven            “Data is the key to
                                                                              Automated
    media buying process”                  Success”
                                                                         Optimization at ease”
•   From media buy to audience
                                 •   Track, store and process data   •   Predictive algorithm that
    buy
                                 •   Transform into meaningful           works
•   Aggregate targeted and
                                     insights                        •   Performance forecast to
    valuable audiences                                                   identify the best campaign
•   Ad placement transparency                                            configuration




       Better Return                  Smarter Decision                      More Efficient
XMO – Unique Tracking Method

                        •   Price index by industry
                        •   Economical factors
                        •   Special events

        Seasonality
          Effect
                        •   Conversion funnel from tracking data
                        •   Bounce back rate
                        •   User segments
        Customer
        Behavior        •   Value per client type


                        •   Cost per acquisition data
        Conversion      •   Conversion life cycle
                        •   Ad Copy optimization
                        •   Value per conversion



        Keywords        •   Cost per click data
                        •   Data modeling
                        •   Data Recency
XMO – Unique Tracking Method
One single tracking code that can install for all online advertising forms to
track all activities along the conversion path


                         A budget travel package mentioned by
                         friends in social network

                         A travel agency’s banner displayed on a
                         travel website


                         Top search result a user clicks on with
                         great intention to look for the service




                                                                   10
XMO – Performance Forecast

The enormous data collected through XMO tracking are stored to build a
spectrum of data model to predict advertising results.
XMO – Predictive Algorithm
Possess and calculate                                                                         Decides where, when
     data points             XMO Data Repository                                               how often to show
  (demographic, user         where data mining and                                              ads across all our
 behavior, performance     various algorithms are built                                                media
       statistics)                                                                               (sites, placement,
                                                                                             content verticals, ad size)
                                 Define the length of data windows to be used

                           Recent data            Historical data          Forecast data



                                                 Reallocate budget
                          Search engine                                    Geo-graphical
                                                  Campaign level
                              level                                          location



                                         #1 level keyword segmentation

                           Converting Keywords                 Non-converting keywords



                                         #2 level keyword segmentation

                         Brand         Generic         Tail          Assist      Negative



                                                  Portfolio study

                                      ROI                              Counter



                                            Up-bid / Down-bid process
                         Regression
                                             Normal           Aggressive      Conservative
                          models
XMO – Attribution and Portfolio Approach

 Traditional tracking method only credits that channel that give rise to the
 last click before conversion:

   Social Media    Rich Media     Display      Mobile       Search        Conversion
XMO – Reports and Insights

                    Advertisers login to XMO to retrieve
                    reports of all kinds.



                    Cross-marketplace dashboard to
                    understand overall campaign
                    performance at one glance



                             Unique PPC diagnostic tool to
                             evaluate market effectiveness of
                             keyword and ad group and divide
                             them into quadrants based on target
                             CPA and bid position
Uniqueness of Our Technology

• Intelligent cookie based tracking technology which can track
  across different channels
• Attribution based modeling brings complexity into simplicity
• Computer algorithm designed for Asian advertisers
• Re-targeting capability to improve conversion funnel efficiency
• Cross market place budget allocation for dynamic marketing
• Easy to use multi channel campaign management interface
• Full integration with major publishers



      The Next Generation Marketing Operating System
Well-known International Cosmetic
       Brand SEM Showcase
             Mar 2012
Unique Performance Strategy
                                                                 3rd Stage: (onwards)
                                                                 1)   Cost Optimization to stabilize cost per
                                                                      order
                          2nd Stage: (3-6 months)                2)   Expand market share to ad network
                          1)    Geographic segmentation to       3)   Expand market share to 2nd tier search
                                expand volume                         engine
                          2)    Long tail keyword expansion
                          3)    Brand Zone Optimization
                          4)    Seasonal Optimization Strategy                Text
1st Stage: (1-2 months)
1) Account Restructuring
2) Enhance full path tracking
3) Data collection and full
path analysis




              We expand keyword and channel be converting data step
                 by step so as to minimize the risk and fluctuation
Overall Performance

                        Start SEM Optimization




• Average monthly sales increased 92% after consistent optimization
• Average monthly order volume also increased 87%
• Conversion rate increased 288%
We are ready to work with you
     in launching a highly
performance driven campaign


        Contact us at:
   Ricky.ng@i-click.com.hk

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Performance marketing platform through optimization and algorithm

  • 1. iClick Interactive Asia Performance Marketing Platform through Optimization and Algorithm Ricky Ng March 2012 Nov2011
  • 2. Who Are We? • The leading optimization platform in Asia • Over 800 advertisers from SMEs to Fortune 100 companies – Finance and Banking: Citibank, DBS, eTrade, eMoney, American Express – Hotel and Travel: Disneyland, Hilton Hotel Group, Travelzen, Wynns, AirAsia – E-commerce: Dangdang, Amazon CN, Vancl, M18, Lane Crawford, Strawberry.net – FMCG: Estee Lauder, DKSH, Abbott, Revlon • Baidu Exclusive partner in Hong Kong, Macau, Taiwan, Singapore, objective to bring foreign brands and corporate to China • Optimize over US$100M online ad spend through our proprietary technology – 70 millions keywords – 5 millions models processed everyday – 4 terabytes click log data • Real-time data integration with major publishers in the region – SEM & Display: Google, Yahoo!, Microsoft and Baidu
  • 3. Marketer’s Pain In the complex online media landscape today, how to deliver a right ad in a right medium at a right time to gain sustainable ROI?
  • 4. The Evolving Digital Landscape 1996  1998  2005  2011  Direct Media Rising of Ad Ad Demand-side Buy Network Exchanges Platform Example:
  • 5. Our Unique Approach Demand XMO Supply (“Cross-Marketplace Optimizer”) Advertisers/ Publishers / Objectives • Single tracking pixels Channels across platforms • Over 12 types of Search Branding • Real time data categorical data models Cost-per- synchronization • Cross platforms Lead with major data modeling publishers Acquisition 1. Tracking 2. Data Display Cost-per- and Data Mining and Acquisition Collection Modeling Regional Cost-per- SNS sales Local 4. Automated 3. Analytics Maximize Conversion Optimization and Mobile Small- • Dynamic Insights • Full conversion medium path analysis budget allocation Maximize • Conversion funnel Click • Retargeting and cycle analysis capabilities Campaign- • Industry conversion • Market turmoil control Blog based standard and more… and more… 5 Increased efficiency in matching demand and supply
  • 6. Consolidated Buying Data Data Audience Inventory Ad Server IP Data + Media Exchange Data Exchange Media Boom + Creative + Rules Sync Smarter Target Smarter Target Smarter Reach 6 Real Time Bidding (RTB)
  • 7. The Ecosystem is Changing
  • 8. Introducing XMO 1 2 3 “Achieve On-going, “Efficient, ROI driven “Data is the key to Automated media buying process” Success” Optimization at ease” • From media buy to audience • Track, store and process data • Predictive algorithm that buy • Transform into meaningful works • Aggregate targeted and insights • Performance forecast to valuable audiences identify the best campaign • Ad placement transparency configuration Better Return Smarter Decision More Efficient
  • 9. XMO – Unique Tracking Method • Price index by industry • Economical factors • Special events Seasonality Effect • Conversion funnel from tracking data • Bounce back rate • User segments Customer Behavior • Value per client type • Cost per acquisition data Conversion • Conversion life cycle • Ad Copy optimization • Value per conversion Keywords • Cost per click data • Data modeling • Data Recency
  • 10. XMO – Unique Tracking Method One single tracking code that can install for all online advertising forms to track all activities along the conversion path A budget travel package mentioned by friends in social network A travel agency’s banner displayed on a travel website Top search result a user clicks on with great intention to look for the service 10
  • 11. XMO – Performance Forecast The enormous data collected through XMO tracking are stored to build a spectrum of data model to predict advertising results.
  • 12. XMO – Predictive Algorithm Possess and calculate Decides where, when data points XMO Data Repository how often to show (demographic, user where data mining and ads across all our behavior, performance various algorithms are built media statistics) (sites, placement, content verticals, ad size) Define the length of data windows to be used Recent data Historical data Forecast data Reallocate budget Search engine Geo-graphical Campaign level level location #1 level keyword segmentation Converting Keywords Non-converting keywords #2 level keyword segmentation Brand Generic Tail Assist Negative Portfolio study ROI Counter Up-bid / Down-bid process Regression Normal Aggressive Conservative models
  • 13. XMO – Attribution and Portfolio Approach Traditional tracking method only credits that channel that give rise to the last click before conversion: Social Media Rich Media Display Mobile Search Conversion
  • 14. XMO – Reports and Insights Advertisers login to XMO to retrieve reports of all kinds. Cross-marketplace dashboard to understand overall campaign performance at one glance Unique PPC diagnostic tool to evaluate market effectiveness of keyword and ad group and divide them into quadrants based on target CPA and bid position
  • 15. Uniqueness of Our Technology • Intelligent cookie based tracking technology which can track across different channels • Attribution based modeling brings complexity into simplicity • Computer algorithm designed for Asian advertisers • Re-targeting capability to improve conversion funnel efficiency • Cross market place budget allocation for dynamic marketing • Easy to use multi channel campaign management interface • Full integration with major publishers The Next Generation Marketing Operating System
  • 16. Well-known International Cosmetic Brand SEM Showcase Mar 2012
  • 17. Unique Performance Strategy 3rd Stage: (onwards) 1) Cost Optimization to stabilize cost per order 2nd Stage: (3-6 months) 2) Expand market share to ad network 1) Geographic segmentation to 3) Expand market share to 2nd tier search expand volume engine 2) Long tail keyword expansion 3) Brand Zone Optimization 4) Seasonal Optimization Strategy Text 1st Stage: (1-2 months) 1) Account Restructuring 2) Enhance full path tracking 3) Data collection and full path analysis We expand keyword and channel be converting data step by step so as to minimize the risk and fluctuation
  • 18. Overall Performance Start SEM Optimization • Average monthly sales increased 92% after consistent optimization • Average monthly order volume also increased 87% • Conversion rate increased 288%
  • 19. We are ready to work with you in launching a highly performance driven campaign Contact us at: Ricky.ng@i-click.com.hk