How to Win with Advertising in the Mobile-First Era

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1© 2015 Kenshoo, Ltd. Confidential and Proprietary Information

How to Win with Advertising in the Mobile-First Era

June 9, 2015

2© 2015 Kenshoo, Ltd. Confidential and Proprietary Information

Your Speakers

Nate Young Director of Business Development

Kelly WratherSr Manager, Content

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• Mobile Landscape & Trends

• Challenges & Opportunities of Mobile-First

• Importance of Mobile Calls

• Mobile Advertising Best Practices

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Mobile Landscape & Trends

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By 2019, Mobile will account for 72% of digital ad spend

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Mobile Search Spend & Clicks on the Rise

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 20140%

5%

10%

15%

20%

25%

30%

35%

40%

26% 26%

29%

32%34%

28%29%

32%

35%

37%

Spend Clicks

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Mobile Search Investments Paid Off this Holiday

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Mobile is Playing a Larger Part for Consumers

“The customers who use all of our digital properties—not just

the apps—tend to be our better customers in general. They’re on digital media, they’re in the stores often and they’re using

[mobile] as a tool to make shopping easier. ”- Heidi Reale | Director of Shopper & Digital Marketing

3XUS location-targeted mobile advertising revenues will more than triple over the next 5 years

9© 2015 Kenshoo, Ltd. Confidential and Proprietary Information

Your phone or…?

Increasingly Mobile First

21% 20% 33%30%

Sources: The Huffington Post, Atlantic, SiliconFilter..com

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Challenges & Opportunities

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The Opportunity

Capture the hearts and minds.

Connect your brand on an emotional level(emotions are what make people buy)

DID YOU KNOW?

77% of smartphone owners indicated that their phone made them feel “happy”.

- PewInternet.org

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The Challenge

When things get personal,people also feel protective.

So how do you break through?

DID YOU KNOW?

80-90% of apps are eventually deleted.

- USA Today

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The RealityConsumers have high expectations…

and are disappointed when you don’t deliver

of marketers who feel consumers are disappointed when they reach a non-mobile friendly site

of marketers who think consumers would be unlikely to return to a non-optimized site after the first visit.

82% 62%

Source: Advertiser Perceptions of the Three-Screen World, Kenshoo

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Marketers Have an Opportunity to Grow

42% marketers feel that the majority of advertisers are lagging behind cross-device consumer trends

We asked…

how sophisticated do you feel most advertisers are with regards to cross-device marketing strategy?

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Importance of Mobile Calls

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Evolving Landscape Brings New Challenges

Multiple Screens Multiple LocationsMultiple Channels

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Mobile-Local Are Intrinsically Connected“Near Me" Searches

doubled in the past year, with mobile accounting for

80% of those

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Nearby Searches Drive Local-Oriented Actions

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of mobile searchers have used the “call” button

increase in average click through rate recorded when phone number added to mobile search ads

of local businesses say calls are the best leads they receives

19

Source: Bia/Kelsey 2013, Google, 2013

64%

70%

8%

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What is your mobile goal?

33%

4%33%

2%

9%

19%Online Traffic

In-store Traffic

Direct Sales

App installs

Phone Calls

Other conversion activity

Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later

What is your mobile paid search goal?

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Calls Are a Natural Conversion Type on Mobile

Callers are 10x more likely to turn into customers than form fills.

21

73 billion inbound sales calls expected in 2018

Source: : BIA Kelsey, 2013; Convirza, 2014

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Answering the Call with Powerful Data…

• What ad, campaign, keyword, or landing page drove the call?

• Where did the call come from?

• What day and time was the call made?

• What phone number was the caller calling from?

• Where was the call routed?

• Was the call answered?

• Was the caller put on hold and if so, for how long?

• How long did the call last?

22

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Closing the Loop with Call Conversion Optimization

Optimize based on the tactics that generate the most profitable phone calls

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Challenges

• Drive leads for more than 1,800 dealerships

• Increase call volume and quality

• Track offline leads

• Optimize cost-per-lead

• Integrate Kenshoo call tracking to report on phone leads

• Leverage Call Conversion Optimization to optimize campaigns based on high performing keywords

• Use insights to drive more converting calls

Solutions

Call Optimization in Action for National Auto Manufacturer

28%

Conversion Rate

Results

35%

Cost Per Lead

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Mobile Best Practices

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1. Leverage Native Ad Formats

Provide comfortable and seamless brand experiences.

• Prime inventory across key channels including Google, Facebook and Twitter

72% of all mobile ad spend

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2. Align Messaging & Targeting Across Channels

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3. Enhance Ads with Mobile Add-Ons

Click to call Location extensions Mobile PLAs None of the above

52%47%

21%

31%

Which of the following additional mobile functionality do you currently use in con-

junction with your ads?Nearly 50% of marketers utilize click-to-call and location extensions and just over 20% use mobile PLAs.

Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later

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4. Optimize the Mobile Experience

Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later

9%

34%

11%

46%

Mobile-specific ad copy

Mobile bid adjustment

Mobile ad extensions

Mobile-optimized land-ing pages

Aspects of mobile paid search that impact performance

Difficultly of manually optimizing MBAs

18%

22%

42%

7%11%

No change in difficulty

Not difficult at all

Somewhat difficult

Very difficult

I use an algorithm to calculate mobile bid ad-justments

30© 2015 Kenshoo, Ltd. Confidential and Proprietary Information

Beat the crowd and prove your relevance.

5. Capitalize on the New Channels and Formats

• Drive installs and monetize your apps without sacrificing user experience through native advertising via Yahoo! Gemini and Facebook Audience Network

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6. Keep it in Context Your mobile-first strategy should be a consumer-first strategy, tailored to their journey

retain growdiscover engage convert

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Making the Most of Mobile

• Optimize your mobile bid adjustments and understand impact of your portfolio policy on desktop and mobile performance

• Gain insights into device-level performance so you can better reach customers wherever they are

• Improve your app marketing with a scalable way to manage app extensions

33© 2015 Kenshoo, Ltd. Confidential and Proprietary Information

Winning at Mobile Means…

And make it last.

CONNECT

RESONATE

MEASURE

OPTIMIZE

Control the experience.

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