Q3 Report: Tablet Users Shown to be Most Engaged

IgnitionOne’s new Quarterly Online Advertising report reveals that tablet users spent 30% more time on site and had 20% higher engagement than PC users. This engagement was even higher within the retail vertical, proving the value of reaching this audience.

In the third quarter of 2013, U.S. mobile and tablet search grew to 16.3% from 14% of total search budgets and had a year-over-year (YoY) increase in spend of 167.5%. Total paid search spending grew at 17.8% YoY, representing a slight acceleration compared to the last quarter.

Download the Q3 2012 Online Advertising report here.

Additional findings include:

Mobile and tablet advertising grows as percentage of spend – U.S. Mobile grew to 16.3% from 14% of total search budgets though with a YoY increase in spend of 167.5%. This represents a deceleration from the massive growth rates experienced in the first half of the year.

Yahoo! Bing Network spending continues to accelerate in US – Google CPCs grew YoY for the first time in 2012 (up 7.7%) but Yahoo! Bing saw CPCs increase at nearly triple this at 26.1% YoY.

U.S. search growth up almost 18% YoY – While growth was flat quarter-over-quarter (QoQ), paid search spend in Q3 was up 17.8% compared to the previous year. Growth was tempered by a weaker than expected back-to-school season in retail and the continued general weakness in the macro-economy.

Tablet users are most engaged users – Compared to PC users, tablet users spent 30% more time on-site and had 20% higher Engagement Scores (proprietary user-level scoring metric).

This report is the latest in a series of IgnitionOne white papers reviewing trends across the online advertising landscape. Previous whitepapers and quarterly reports can be downloaded here.

Media Mix Modeling, the Next Frontier

By now, most marketers understand the benefits of a multi-channel view of their marketing efforts. It provides a much needed strategic picture of where and how efficiently their media dollars are being spent (read more about it here and here).

But what does a marketer do with the wealth of information in front of him? How does he monetize this new found knowledge? The easy answer here is to use this acquired data to optimize.

At this strategic level, the marketer is not optimizing intra-channel efficiency (the profitability of an individual channel), but rather the mix of media dollars across all channels.  Media Mix Modeling can be a very useful tool, helping the marketer make decisions which are backed up by historical performance and statistical significance. It can be used to create a strategic, media dollar, potential efficiency curve.

The curve is created by stacking the individual efficiency potentials of each channel together and plotting them on the same graph. This provides a comprehensive view of the relative profitability of each channel at any particular budget. It’s easy to see at what level of media spend the diminishing returns set in for each individual channel and the entire media mix as whole.

For instance, SEO and paid search brand channels are extremely efficient at very low levels of spend. However, these channels quickly become maxed out and lose their efficiency. Using a chart like this, the marketer can quickly see each channel’s potential and distribute the media dollars accordingly.

In order to take full advantage of these optimization techniques, the marketer must have control of budget making decisions at the strategic level. The usefulness of Media Mix Modeling quickly dissipates if each, or even a significant minority of channels, is “siloed” into preset budget regales of their relative inter-channel efficiencies (read more here).

The historical performance of aggregate marketing efforts can be seen by plotting several Media Mix Modeling curves on the same graph. Assuming that overall media efforts are improving, the curves will move up and to the right, showing the increased efficiency and scalability of all inter-channel media.

Innovation through a Desktop

Encourage, foster & share – those are, in my opinion, the three most important words when it comes to innovation in a company. Being a digital marketing solutions provider, our office is filled with computers, keyboards, monitors, headphones, servers and more! Being so dependent on computers inspired me to look at innovation like a computer.

Browser history

If it weren’t for innovation, IgnitionOne wouldn’t exist. Who would have thought that synchronising media management and optimization, cross-channel attribution and analytics and conversion optimization would create the first ever Digital Marketing Suite (DMS), covering all digital marketing solutions? We did.

Am I overloading my own USB a bit? Of course I am! But there’s good reason for it. Here’s why. First let’s state the obvious: what’s shown to the outside world, what’s on our monitor. IgnitionOne introduced the very first Digital Marketing Suite and are constantly innovating to improve digital marketing returns and efficiency. Another example is IgnitionOne announcing the industry’s first integrated Engagement Optimization solution, offering marketers the ability to optimize ad spend based on behaviours and interests.

So, how on earth do we come up with these things? Where do the ideas come from? How are they tested and worked on to produce a useful solution for our customers? These questions bring us to the chore facets of innovation, the most interesting, opening up the shell of the company and looking at the processor inside.

Encourage, foster and share

A big forté of the company here is our diverse backgrounds. In just 40 employees in Brussels, we have over 12 different nationalities– that is a whole lot of desktop applications, getting the creative juices flowing.  Our office has a very open atmosphere; it’s easy to ask anyone what he or she thinks about a certain topic and you’ll always get an honest answer.  We are even working toward redesigning the office to bring all departments closer to each other, meaning more data will be stored on the RAM instead of ROM and the CPU can create extra bits to work on testing out ideas.

Nurture and encourage growth

We try to increase the number of followers. There is a fun spirit in the office: there is music, some people play ping-pong to relax the mind, people comfortably speak with one another at the lunch table and sometimes it is there that wacky ideas are thought of (our own chef, a hunky masseur for the ladies, or just the idea to have a BBQ together). IgnitionOne creates a comfortable atmosphere that encourages its employees to work hard and produce results.

Share

In the office in Brussels we have monthly “TEDx” sessions. We present new ideas, interesting projects and results from testing, discuss suggestions. This often results in the creation of new ideas. Our TEDx sessions are interdepartmental because we understand that what each of us does has an impact on other’s work. We share the presentations after the sessions for others that are interested too (even internationally) to download, which sometimes spurs new ideas in others, opening new browser tabs.

Better than a computer

Is comparing innovation at IgnitionOne a stretch? Maybe. We avoid the blue screens of death and rebooting our team is as easy as an afternoon coffee. But the important part is the fact that all the components of our system work together like a well built machine to develop and foster new ideas to help our clients achieve their goals.

Are You Listening to Your Customers?

Imagine a stellar PPC program: Its CPCs are under control, the account is hitting monthly budgets right on the dot without caps, negatives are in place, and the structure is solid… However the lift in conversions and conversion rate is minimal at best. The above scenario seems to be common and most companies are content with their conversion rates because they believe their sites are fully optimized. Should a conversion rate really be acceptable just because it is on par with industry averages? Even when considering all the blood and sweat put in to drive quality traffic? Put in perspective, the performance of a brick and mortar store’s sales manager who cannot close the deal with 98 out of every 100 customers would likely result in one out of work manager.  So, why should we treat the online sales so differently?

The solution to overcome this fatigue is simple – listen to visitor engagement. Various customer insights tools, such as IgnitionOne’s engagement scoring technology, help advertisers overcome this strenuous task. Some of the applications of this technology that directly impact the conversion rates include:

  • Interactive Pop-Ins : Interact with those users that reach a threshold where they are more likely to convert
  • Smart Remarketing : Remarket to a selective pool of high quality leads
  • On-site Content Optimization :  Display the most relevant content to the user
  • CRM integration: Personalize email content based on relevant content
  • On-site to Off-site : Drive in-person store/showroom traffic through online incentives

Engagement metrics can shed some light on a PPC account’s performance from both direct response and branding perspectives.  Below are the metrics that are tied to campaign, group and keywords performance within the Digital Marketing Suite

  • Number of Sessions
  • Average Session Time
  • Average Score Change
  • Average Final Score
  • Average Page Views
  • Total New Users
  • Total Returning Users
  • Interest Categories

Now let’s look at one of the cool ways to slice and dice these engagement metrics and see how they can be utilized to close the loop for your SEM strategy. Below is a quadrant approach which divides keywords into two groups based on their location in the conversion funnel: Low Assisting vs. High Assisting.

The Low Assisting quadrant suggests that keywords higher in the conversion funnel with few conversions and low engagement (minimal average score change, low number of sessions, low number of interest categories) should be considered for replacement via search queries. Likewise, those low assisting keywords with high engagement scores indicate that the visitors are highly involved on the page but are not turning into closers. The area of improvement for these terms is testing landing pages or interacting with the visitor via Conversion Optimization tactics (pop-ins, lead forms, vouchers, etc.)

The High Assisting quadrant suggests that keywords lower in the conversion funnel with few conversions and low engagement should be maintained at best for future value.  On the other hand, high assisting keywords with high engagement scores should be considered true introducers, where as it falls on the advertiser to assign the trade-off value as a direct converter versus contributor.

While the above examples explain only a couple of direct response scenarios, a lot can be deduced from analyzing this data, including branding initiatives. The key benefit of this technology is adding in the visitor intent into the equation and tying it back to a PPC program’s success. It gives advertisers the chance to actively listen to their customers’ online behavior and let them choose what they desire to do with that information. Are you listening to your customers?

Want to learn more? Visit IgnitionOne or contact us.

What About Search Partner Networks?

SEM managers should be concerned with partner network traffic when seeking to increase efficiencies for a particular account.

I’m not here to outright denigrate the search partner network.  It’s a great solution to a potential problem for all parties involved.  There are a lot of smaller portals out there through which users can search the web, and these users undoubtedly constitute a considerable amount of valuable traffic.

That being said, even your engine rep will probably pitch it to you as a marginal revenue segment of your search spend rather than an efficient channel that stands on its own merit and can be expected to compete on KPI’s with the principle publishers.

Assessing partner network performance, and turning them off when warranted, is completely essential to your entire SEM effort.  Omitting a partner network can do much more than just save you the portion of the budget it’s absorbing.  Switching off a poor performing partner network can cause an uptick in every metric for a given campaign, and this comprehensive array of benefits can lift a campaign into an entirely different tier of performance.  If you’re reading this, you don’t need me to tell you the heights that harmonic interplay between rising CTR, falling CPC, and steadily climbing conversion rate can propel an SEM initiative to.

Before anyone rushes out and turns off every partner network that is currently missing marketing goals, no matter how narrowly scoped the view or by how small a margin they fall short, it’s important to be aware of the potential negatives of such a sweeping measure and decide on strategy with a caution/aggression balance tailored to your efficiency/volume needs.

At IgnitionOne, we tend to err on the side of caution when switching off partner networks, and choose to do so with “mature” search campaigns.  The reason we make this one of the last major optimizations is simple: the search partner network can respond just as strongly to optimization efforts as principle-engine search, and so to cut the network early in a campaign’s lifecycle is to miss out on possible gains that other optimizations that would possibly drive the partner network into profitable territory.  It’s best to think of most optimization measures as paint, and the partner networks as part of the canvas: see what brush strokes the space affords you and what picture you can paint before cutting out part of the picture.

When we’ve decided it’s time to cull the partner herd, we take approach that examines multiple metrics.  The first thing to look for may be partner networks missing a KPI goal such as ROAS or CPA, but that’s just scratching the surface.  It’s important to make sure that the problem is truly the partner network and not some other factor, and for that reason, we look for networks that perform below both client goals and the campaign’s engine search traffic.  If a partner network’s CTR, conversion rate, and ROAS are lower, and its CPA, is higher, we will cut it.  CPC is tricky, as sometimes a partner will provide too many cheap clicks to give up on, whether the rationale is that conversions will eventually have to follow, or that the impressions are good for branding.

A key metric some managers miss is Average Rank.  We don’t like to cut a partner network unless its average rank is around or above the engine search average rank.  If your ads aren’t showing at the same rank on both networks, how can you expect the same performance?  Lower ad rank on a search partner network is something we tend to see get hammered out over time, and so it’s best not to give up yet if you see your partner networks hampered by this effect.

Once you’ve made these changes, be sure to pay close attention to the affected campaigns and verify that you’re seeing the response in the metrics that you expected.  Tricky elements like click-path assists and other unforeseen indirect consequences could demonstrate that the partner networks you cut were providing value that wasn’t immediately apparent to you.

IgnitionOne Announces Google Shopping Integration within the Digital Marketing Suite

Today, IgnitionOne announced the launch of another feature within its Digital Marketing Suite (DMS). Google Shopping will be seamlessly integrated into the platform, which will allow retail marketers to manage Product Listing ads side-by-side search, display and Facebook. The integration also allows marketers to combine IgnitionOne’s powerful attribution capabilities to track and optimize bidding across all media channels with best-of-breed semantic optimization. This automatically creates an optimal campaign structure in AdWords based on a semantically optimized product feed.

IgnitionOne’s DMS is the first digital marketing platform to integrate with Google Product Listing Ads with this combination of optimizations. This offering will provide retail marketers the tools to maximize their efforts in Google Shopping with seamless integration to product feeds, tracking, optimization and reporting.

Key Benefits to Customers:
Enhanced efficiency, allowing marketers to manage Google Shopping right next to search, display and Facebook with the fully-integrated centralized technology stack (DMS).
Improves ROI by combining semantic optimization and bid optimization with IgnitionOne’s cross-channel attribution capabilities, allowing marketers to allocate media budget more intelligently in order to get the most out of every dollar spent.
Marketers are able to see the full picture by leveraging sophisticated custom attribution profiles to best meet their needs.

Read the press release here.

IgnitionOne Industry Digest

September 2012

This is the most recent issue of the IgnitionOne Industry Digest, created to keep you up-to-date on the latest industry insights and competitor news.

Company Highlights

SEM Metrics that Really Matter
Search Engine Watch
August 2, 2012

Dave Ragals, SVP, Client Services at IgnitionOne discusses the metrics that are most important in search engine marketing and better allow marketers to understand the value of the results.

Five Best Practices for Display
DigitalMarketingSuite.com
August 2, 2012

David Hill, Senior Product Manager at IgnitionOne, lists five best practices for marketers implementing display into their marketing mix.

An Intelligent Business: Understanding the Conversion Path for an Online Booking
Eye for Travel
August 7, 2012

IgnitionOne data pertaining to what affects the speed of an onlinebooking and size of the average order value is used in this Eye for Travel report, as well as insights from Dominic Gramatte at IgnitionOne UK.

IgnitionOne Ignites Expedia Ireland’s CTR
Breaking News Travel
August 11, 2012

IgnitionOne announces the results of a partnership with Expedia.ie, consisting of the improvement of overall site relevancy by 25% and a four times higher CTR using targeted homepage banners compared to default or standard banners. See the case study here

Q&A with Noriaki Okubo, IgnitionOne’s Managing Director, APAC
DigitalMarketingSuite.com
August 15, 2012

Noriaki Okubo discusses marketing in Asia, the recent launch of remarketing in Japan and pivotal supplies if ever stranded on an island.

Through the Lens of an Intern
DigitalMarketingSuite.com
August 22, 2012

Isaias Garcia discusses what it is like to be an intern at IgnitionOne, some notable experiences and his take on the digital landscape.

Mobile is where it’s At (Literally)
MediaPost
August 23, 2012

Roger Barnette, President of IgnitionOne, covers mobile search in his MediaPost byline and offers key takeaways for marketers in need of integrating mobile into their mix.

Back to School for Search Marketers
Search Engine Watch
August 30, 2012

Dave Ragals reminds search marketers to revisit the fundamentals as part of the “back to school” season.

Econsultancy PPC Bid Management Technology Buyer’s Guide
DigitalMarketingSuite.com
August, 2012

IgnitionOne is featured in the 2012 Econsultancy PPC Bid Management Technology Buyer’s Guide, a valuable tool for those interested in the global market for paid search bid management technology, containing a detailed analysis of market trends and guidance about how to select the right technology.

Industry Insights

Accurately Evaluate the Performance of your Marketing Efforts
ClickZ
August 1, 2012

Four steps to ensure you are accurately measuring the performance of your marketing efforts: starting with you business objective; investing in research; knowing what success looks like and considering the big picture.

China Edges closer to the US in Online Advertising
Internet Retailer
August 3, 2012

According to a new forecast by eMarketer, China will surpass the UK in 2014 to become the second largest source of online advertising in the world, after the US, at an estimated $11.78 billion, compared to the UK’s estimated $11.25 billion and the US’ $52.80 billion.

Reinventing the CMO
ClickZ
August 6, 2012

A recent report revealed that 80% of CEOs are not satisfied with the work done by marketers, yet 90% value and trust the work of CFOs and CIOs, however, CMOs have gained access to measure, normalize, and rationalize marketing programs – demonstrating a clear and compelling marketing ROI – to silence critics and build respect in the executive suite.

The History of Marketing Channels 2012 (Infographic)
Marketing Pilgrim
August 7, 2012

An infographic that highlights the emergence of marketing in 1839 and the incredible influx of marketing channels in the last four decades.

Earned, Owned, Paid, Shared: Horsemen of the Apocalypse or Best Opportunity?
ClickZ
August 13, 2012

Multi-channel, multi-media, and multi-skilled are the baseline expectations for competitive marketing with digital media. Some marketers see the shift in media as an opportunity to build an approach that fully leverages changes in consumer use of technologies, how they’re influenced, and how they influence others. The author discusses how to attract, engage and convert prospects to buyers through earned, owned, paid and shared media.

You Don’t Control Your Digital Technology Decisions, M&A Does
AdExchanger
August 14, 2012

Mergers and acquisitions are shaping the digital technology landscape, by allowing large players to evolve into the enterprise resource space. This article advises marketers to thrive in this “storm” by working with those who have a keen vision of the future and can shed light on complex situations.

The “Missing Manual” of Search Marketing in China: Part Two
Econsultancy
August 15, 2012

This article discusses the relationship between search engines and social media in China, and the implications for marketing.

Braving the Rough Waters of Online Marketing
ClickZ
August 15, 2012

This column uses rowing as a metaphor for marketing. Small to mid-sized organizations are much like beginning rowers who get better with practice. Carton offers advice: know your destination, focus on measuring what matters, don’t be afraid to experiment, be prepared to make small, frequent course corrections and take sensible precautions.

Braving the Rough Waters of Online Marketing
ClickZ
August 15, 2012

This column uses rowing as a metaphor for marketing. Small to mid-sized organizations are much like beginning rowers who get better with practice. Carton offers advice: know your destination, focus on measuring what matters, don’t be afraid to experiment, be prepared to make small, frequent course corrections and take sensible precautions.

Key Mobile Users Comfortable with Ads, Shopping with Devices
Marketing Charts
August 15, 2012

New research finds three segments who routinely use mobile media: women with children at home (77%) and mobile Boomers (74%) are highly likely to use their devices while shopping in retail stores, while Generation M are least likely to use their devices while shopping (65%) but show the most comfort with ads. 59% of mobile users say their purchases are influenced by mobile ads, ahead of the 57% influenced by TV ads and 53% of US mobile users say they have been introduced to something new via their device.

The Dangers of Buckets
Digiday
August 16 2012

People tend to force things (people, products, etc) into buckets or categories in order to stay on track, hence the bucketing of tech products and services, which is inhibiting the realization of companies’ offerings.

Ten Interesting Digital Marketing Stats We’ve Seen this Week
Econsultancy
August 17, 2012

Top statistics from the week of August 17 showing that more than three quarters of searches are successful, RTB video ad inventory is on the increase, m-commerce is predicted to boom and more.

New Data Reveals How Marketers Use Social Media
HubSpot
August 20, 2012

This infographic reveals that Facebook and Twitter lead as the most popular social networks, with Google+ as the third. 74% of marketers use LinkedIn for branding, and 60% of marketers are looking for analysis options as well as other analytics options in their social media management tools.

16 Different between Google Mobile and Desktop Search Results in 2012
Search Engine Land
August 20, 2012

Search results vary between mobile and desktop. These differences include local results being more likely on mobile, autocomplete results appear before results in mobile app search, smartphone results having different filters, CTR and bounce rates being more likely to vary in mobile, and more.

Why Media Companies are being Eaten by Tech Companies
AdExchanger
August 20, 2012

Google has continued to expand from technology to media, highlighted by acquisitions, such as its recent purchase of Frommer’s; Amazon changes its distribution model through the use of technology; Microsoft has altered the engagement model and therefore the distribution of content via the Xbox. With these examples, it is clear that existing media models will continue to be disrupted and that the future of media is intertwined with technology.

Demand for Mobile impressions through RTB Jumps During H1
Marketing Charts
August 21, 2012

Advertiser and DSP demand for mobile ad impressions through RTB rose from 0.4 bids per impression request in January to 1.6 in June, with a peak of 1.7 in May. Android saw an increase in share of auction volume of 39%, from 28% in April to 39% in June; demand for social networking impressions stood out in Q2, growing from 9% share of auction volume in April to 31% in June; and the US demonstrated the largest share of auction volume in Q2, growing from 21% in April to 25% in June, even as the rest of the world was in flux.

Integrated Marketing Checklist: Tying Together Your Promotion across Platforms
Search Engine Watch
August 22, 2012

This piece shows how marketers should tie promotions across platforms, including like-verbiage on promotional messages on-site, in paid advertising, social media and email marketing.

Does Your PPC Budget Match Your Conversion Optimization Budget?
Search Engine Watch
August 22, 2012

This article highlights the problem of not spending enough time, money and effort on optimizing your conversions.

Nine Chances for Website Conversion Optimization You Don’t Want to Miss
HubSpot
August 22, 2012

Nine tips to boost your website’s conversion potential, including leveraging social proof, revitalizing CTA designs, featuring new offers, updating CTAs on high-trafficking blog posts and web pages, reducing friction, A/B testing and optimizing landing pages and CTAs, experimenting with secondary CTAs, appropriately aligning CTA selection with web pages and optimizing pages you expect to receive high traffic.

Integrated Marketing: If You Want Your Digital Media to be Great, You Must Integrate
TopRank
August 22, 2012

This article outlines how to integrate paid, earned, owned and shared media and asserts that engaging consumers where they live online and in ways that they care about represents the path to helping brands become more relevant.

Facebook Officially Launches “Sponsored Results” Search Ads
Tech Crunch
August 22, 2012

The Sponsored Results search typehead ad unit allows marketers to target users searching for specific apps, pages and places and inserts a link into the typehead results that points to their own app, page, custom page tab or post.

Display Ads Stable on Major Web Portals
MediaPost
August 24, 2012

The most recent display ad-tracking report revealed that 38% of home page ads were oversized/custom units, up from 36% for the same period a year ago, but down from 44% in the first half of the second quarter. Financial services and media were the biggest verticals in the first half of the current quarter, accounting for 20%, and 17%, of home page ads, respectively. Automotive was another strong contributor, representing 14% of ads.

Facebook Measurement Chief Advocates New Standard for Gauging Reach
AdAge
August 27, 2012

Brad Smallwood, Facebook’s Head of Measurement and Insights, admits that the company continues to look for ways to measure experiences on the sight, and feels that media agencies and advertisers are three to five years away from demanding successful metrics.

IgnitionOne will be at Shop.org in Denver Sept 10-12

IgnitionOne will be sponsoring and exhibiting at this year’s Shop.org in Denver, Colorado!

Visit us at booth 906 to learn more about our services or to chat with a representative. We will be giving away locally brewed beer on Tuesday, beginning at 2:30pm and Wednesday, beginning at 1pm. Pick up your branded pilsner glass at booth 906 during regular Expo hours and bring it back for an afternoon refreshment. One lucky person will also win a Jawbone Jambox in our raffle.

Lisa Arsenault, Director, Client Solutions, will be speaking at the Big !dea Session on Wednesday, September 13, at 10:30am, exploring what retailers need to know in order to use mobile regarding ecommerce and research, and will evaluate appropriate methods for devising mobile search strategies and the tactics needed to support them.

If you will be at the event and would like to schedule a time to meet with one of the members of our team, please contact us at info@ignitionone.com.

The Shop.org Annual Summit is digital retail’s most influential annual event. Those who attend are some of the brightest and most innovative players in the digital retail world, and they come to the Summit to build relationships, exchange ideas, share knowledge and discover the next big thing. Each fall, Shop.org produces the Summit as an educational and networking event for the entire digital retail community: senior management, marketers, merchandisers and solution providers. More than 4,000 attendees and 200 exhibitors will gather this year in Denver for the 2012 Shop.org Annual Summit.

IgnitionOne Expands Operations to Brazil

IgnitionOne announced today the opening of its Brazilian operations, based in São Paulo. Edmardo Galli has been appointed as the managing director. The new office is already live with a base of large clients.

Galli, one of the pioneers of digital marketing in Latin America, is perhaps best known in marketing circles for successfully launching 10’ Interactive (10’ Minutos) in 1996, one of the first digital agencies in the Brazilian marketplace. After building his agency into one of the market leaders, he sold it to Ogilvy & Mather and the shop became Ogilvy Interactive in Brazil.

IgnitionOne is excited about being a part of such a vibrant market experiencing unprecedented growth. There is an opportunity to innovate within digital marketing in Brazil and IgnitionOne will be an important player in this process. This office will be the center of efforts to expand the company’s presence in South America and the rapidly growing Brazilian marketplace.

This announcement coincides with CEO Will Margiloff speaking on Integrated Digital Marketing at Digital Age 2.0, a digital marketing conference in São Paulo.

Sao Paulo brazil - IgnitionOne Office