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Custom Optimization Strategies for Digital Advertisers
SMARTER, NOT HARDER
1
Stu Richards
Programmatic Director
Meghan Lavin
Director of Marketing
2
https://bit.ly/3lj8zEU
THIS PRESENTATION ORIGINALLY
AIRED AS A WEBINAR. THE
RECORDING IS AVAILABLE HERE:
Instructions
3
Audio pin
Dialing in via phone? This
is where to find your
audio pin. Enter your
custom pin to hear the
presenters.
To ask questions
Type your question in the
"[Enter question for staff]"
field. Only the presenters
will see the question. Use
this for content questions
or any issues hearing us.
4
Business Results.
Powered by Advanced Marketing Strategy.
Organic Search | Paid Search | Paid Social
Programmatic | Retail Media
Your Speakers
5
MODERATOR SPEAKER
Meghan Lavin
Director of Marketing
Catalyst
Stu Richards
Programmatic Director
Catalyst
6
What’s on tap today:
AGENDA & BACKGROUND
THERE IS NO FORUMLA
7
Introduce the concept of weighted metrics and
optimizations
Explore how they can be uniquely developed for different
advertisers
Understand how they can be implemented across channels
Examine the efficiencies they drive when incorporated into
a media buying strategy
Media Value Assessment
8
ASSESSMENT
MODEL
WHAT IS IT? CALCULATION PROS CONS RATING
CPC Cost Per Click Media Spend / Clicks Lots of data Poor quality performance signal 2
CPLP
Cost Per Landing
Page
Media Spend / Landing Page Visits Good signal of media interaction Doesn't account for post-land actions 3
CPPV Cost Per Page View Media Spend / Page Views Accounts for all site interaction Doesn't discern the value of the action 4
CPA Cost Per Action Media Spend / Actions Strong signal of intent Doesn't account for value of intent 6
ROAS Return on Ad Spend Purchase Revenue / Media Spend
Accounts for value attributed to
action
Only accounts for a moment in time 7
LTV Lifetime Value
Sum of All Purchaser's Revenue / Media
Spend
Accounts for the value of a
consumer
Data scarcity 8
LTV + Influence
Lifetime Value +
Influence
Sum of All Purchaser's Revenue +
Influenced Purchase Revenue / Media
Spend
Very difficult to account for Data scarcity and attribution of influence 9
• Ratings are solely my opinion and do not reflect Catalyst's stance
• Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who distribute through brick and mortar
MEDIA
TRAFFIC
REVENUE
• Multinational refrigeration brand
• Distributes to multiple brick-and-
mortar resellers
• >$100M annual revenue
Our Examples
9
CAN PURCHASE ONLINE
LOW LEVEL SALES
OPTIMIZING TO CPO
CAN'T PURCHASE ONLINE
HIGH LEVEL SALES
OPTIMIZING TO CPRL
KAYLEE'S
FROST
• Luxury DTC leather goods startup
• Sells exclusively on their
eCommerce site
• <$1M annual revenue
10
Approaches for
SURFACING DATA ABOUT
SITE VISITORS’ JOURNEYS
User Journey
11
USER & SOURCE PAGES VISITED PURCHASE & REVENUE
$399
$2,299
About
Us
Sustainable
Fashion Blog
How We Give
Back
About
Us
Sustainable
Fashion Blog
$7,299
???
???
$7999
User Journey
USER & SOURCE PAGES VISITED PURCHASE & REVENUE
DIRECT Product Registration Page
Where to Buy
Where to
Buy
About
Us
13
• Site analytics tools are great, raw data is most powerful due to path
• Segment based on valuable actions, values associated to valuable actions
• If data for valuable actions is scarce, take a step back
AGGREGATED SITE ANALYTICS LOG-LEVEL USER DATA
Assessment Tools
14
Best Practices for
ANALYZING THE USER
JOURNEY
15
• Analyze the difference between those taking valuable actions and the average site visitors
• Ratings are solely my opinion and do not reflect Catalyst's stance
• Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who
distribute through brick and mortar
ANNUAL
REVENUE:
$800K
MONTHLY
VISITORS:
24K
AVERAGE
PURCHASE:
$277
DAILY AVG
PURCHASERS:
8
ANNUAL
REVENUE:
$126M
MONTHLY
VISITORS:
350K
AVERAGE
PURCHASE:
???
DAILY AVG
PURCHASERS:
???
Assessment Analysis
16
• Analyze the difference between those taking valuable actions and the average site visitors
• Ratings are solely my opinion and do not reflect Catalyst's stance
• Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who distribute through
brick and mortar
Index = (Checkout-ers/Avg Visitor) * 100
Assessment Analysis
17
• Fragmented sales data is confusing and time consuming to analyze
• Need to find a digital action point that correlates with sales
REVENUE
FINDARETAILERVISITS
LOCATIONS
jane.harris@email.com
jane.harris@email.com
Assessment Analysis
18
$399
$7,299
$2,299
TIER 3
PURCHASER
(<$999)
TIER 1
PURCHASER
(>$5000)
TIER 2
PURCHASER
($1000-$4999)
• Develop segmentation with substantial purchasers in each tier
Augmenting for Revenue
19
How to Create
WEIGHTED OPTIMIZATION
STRATEGIES
20
PAGES SCORE / MULTIPLIER
SHOWROOMS 4.0
FAQ 2.0
COMPLETE HOMES 2.0
CATEGORY PAGES 1.5
PRODUCT PAGES 1.25
HOMEPAGE .75
Scoring Methodology
21
PAGES TIER 1 TIER 2 TIER 3
INSTA LOOKBOOK 2.0 2.5 4.0
FAQ 1.25 1.24 2.0
ABOUT US 3.0 2.5 2.0
CATEGORY PAGES 1.25 2 1.5
PRODUCT PAGES 1.25 1.5 1.25
HOMEPAGE .5 .5 .75
SUSTAINABLE FASHION
BLOG
5.0 4.0 1
HOW WE GIVE BACK 4.0 5.0 .75
Scoring Methodology
22
Weighted Optimization Strategies:
IMPLEMENTATION &
OUTCOMES
23
DISPLAYSEARCHSOCIAL
DISPLAYSEARCHSOCIAL
COST PER PAGE VIEW
COST PER PURCHASE INDEX POINT
What It Looks Like
24
COST PER ORDER: $100
AVG REVENUE: $120
ROAS: 1.2
COST PER ORDER: $100
AVG REVENUE: $235
ROAS: 2.35
What It Results In
+$13
Case Study
Return on Ad
Spend
2X+
Higher ROAS than
Goal
$17MM
Revenue
KNOW YOUR DATA:
Audit & understand all available data for
analysis.
DON’T COMPARE APPLES TO ORANGES:
Don't compare what you have been doing to
what you're now doing.
APPLY TO ALL CHANNELS:
Once you've developed your weighted
optimization strategy, don't implement it in
siloes.
26
Recommendations
IMPROVE AND REFINE FREQUENTLY:
Re-assess and analyze your data frequently
to keep in line with current consumer
behavior patterns.
DEVELOP FIRST TO MARKET
OPPORTUNITIES:
This process involves work, but with your
insight, you can develop your own bespoke
initiatives.
BRING IN OUTSIDE DATA:
Brainstorm what other data could help
improve your optimizations.
Key Steps for Custom Optimizations
27
1. Collect all available data at your disposal
2. Analyze the value of each digital interaction
3. Create a set of weighted scores based on these digital interactions
4. Build the weighted scores into your omnichannel reporting
5. Optimize media budgets based on weighted scores
6. Repeat steps 1-5
1.
2.
3.
4.
5.
6.
Performance marketing webinar
hub, including on-demand
sessions covering search, social,
ecommerce, retail media,
programmatic, & more
Additional Resources: Webinar Hub
28
www.catalystdigital.com/company/performance-marketing-webinars
Digital commerce thought-leadership to
help advertisers maximize success in
the new world of commerce.
Topics include shopper insights,
Instacart Advertising, omni-channel
strategy & execution, retailer
partnership, & more.
Additional Resources: Virtual Event Series
29
Every Wednesday, 1 – 2:30 pm ET
www.catalystdigital.com/the-new-commerce-conference
Q&A
30
info@catalystdigital.com
THANK YOU
31

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(WEBINAR) Smarter, Not Harder: Custom Optimization Strategies for Digital Advertisers

  • 1. Custom Optimization Strategies for Digital Advertisers SMARTER, NOT HARDER 1 Stu Richards Programmatic Director Meghan Lavin Director of Marketing
  • 2. 2 https://bit.ly/3lj8zEU THIS PRESENTATION ORIGINALLY AIRED AS A WEBINAR. THE RECORDING IS AVAILABLE HERE:
  • 3. Instructions 3 Audio pin Dialing in via phone? This is where to find your audio pin. Enter your custom pin to hear the presenters. To ask questions Type your question in the "[Enter question for staff]" field. Only the presenters will see the question. Use this for content questions or any issues hearing us.
  • 4. 4 Business Results. Powered by Advanced Marketing Strategy. Organic Search | Paid Search | Paid Social Programmatic | Retail Media
  • 5. Your Speakers 5 MODERATOR SPEAKER Meghan Lavin Director of Marketing Catalyst Stu Richards Programmatic Director Catalyst
  • 6. 6 What’s on tap today: AGENDA & BACKGROUND
  • 7. THERE IS NO FORUMLA 7 Introduce the concept of weighted metrics and optimizations Explore how they can be uniquely developed for different advertisers Understand how they can be implemented across channels Examine the efficiencies they drive when incorporated into a media buying strategy
  • 8. Media Value Assessment 8 ASSESSMENT MODEL WHAT IS IT? CALCULATION PROS CONS RATING CPC Cost Per Click Media Spend / Clicks Lots of data Poor quality performance signal 2 CPLP Cost Per Landing Page Media Spend / Landing Page Visits Good signal of media interaction Doesn't account for post-land actions 3 CPPV Cost Per Page View Media Spend / Page Views Accounts for all site interaction Doesn't discern the value of the action 4 CPA Cost Per Action Media Spend / Actions Strong signal of intent Doesn't account for value of intent 6 ROAS Return on Ad Spend Purchase Revenue / Media Spend Accounts for value attributed to action Only accounts for a moment in time 7 LTV Lifetime Value Sum of All Purchaser's Revenue / Media Spend Accounts for the value of a consumer Data scarcity 8 LTV + Influence Lifetime Value + Influence Sum of All Purchaser's Revenue + Influenced Purchase Revenue / Media Spend Very difficult to account for Data scarcity and attribution of influence 9 • Ratings are solely my opinion and do not reflect Catalyst's stance • Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who distribute through brick and mortar MEDIA TRAFFIC REVENUE
  • 9. • Multinational refrigeration brand • Distributes to multiple brick-and- mortar resellers • >$100M annual revenue Our Examples 9 CAN PURCHASE ONLINE LOW LEVEL SALES OPTIMIZING TO CPO CAN'T PURCHASE ONLINE HIGH LEVEL SALES OPTIMIZING TO CPRL KAYLEE'S FROST • Luxury DTC leather goods startup • Sells exclusively on their eCommerce site • <$1M annual revenue
  • 10. 10 Approaches for SURFACING DATA ABOUT SITE VISITORS’ JOURNEYS
  • 11. User Journey 11 USER & SOURCE PAGES VISITED PURCHASE & REVENUE $399 $2,299 About Us Sustainable Fashion Blog How We Give Back About Us Sustainable Fashion Blog $7,299
  • 12. ??? ??? $7999 User Journey USER & SOURCE PAGES VISITED PURCHASE & REVENUE DIRECT Product Registration Page Where to Buy Where to Buy About Us
  • 13. 13 • Site analytics tools are great, raw data is most powerful due to path • Segment based on valuable actions, values associated to valuable actions • If data for valuable actions is scarce, take a step back AGGREGATED SITE ANALYTICS LOG-LEVEL USER DATA Assessment Tools
  • 15. 15 • Analyze the difference between those taking valuable actions and the average site visitors • Ratings are solely my opinion and do not reflect Catalyst's stance • Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who distribute through brick and mortar ANNUAL REVENUE: $800K MONTHLY VISITORS: 24K AVERAGE PURCHASE: $277 DAILY AVG PURCHASERS: 8 ANNUAL REVENUE: $126M MONTHLY VISITORS: 350K AVERAGE PURCHASE: ??? DAILY AVG PURCHASERS: ??? Assessment Analysis
  • 16. 16 • Analyze the difference between those taking valuable actions and the average site visitors • Ratings are solely my opinion and do not reflect Catalyst's stance • Not all advertisers are created equal – although possible, ROAS + LTV very difficult for advertisers who distribute through brick and mortar Index = (Checkout-ers/Avg Visitor) * 100 Assessment Analysis
  • 17. 17 • Fragmented sales data is confusing and time consuming to analyze • Need to find a digital action point that correlates with sales REVENUE FINDARETAILERVISITS LOCATIONS jane.harris@email.com jane.harris@email.com Assessment Analysis
  • 18. 18 $399 $7,299 $2,299 TIER 3 PURCHASER (<$999) TIER 1 PURCHASER (>$5000) TIER 2 PURCHASER ($1000-$4999) • Develop segmentation with substantial purchasers in each tier Augmenting for Revenue
  • 19. 19 How to Create WEIGHTED OPTIMIZATION STRATEGIES
  • 20. 20 PAGES SCORE / MULTIPLIER SHOWROOMS 4.0 FAQ 2.0 COMPLETE HOMES 2.0 CATEGORY PAGES 1.5 PRODUCT PAGES 1.25 HOMEPAGE .75 Scoring Methodology
  • 21. 21 PAGES TIER 1 TIER 2 TIER 3 INSTA LOOKBOOK 2.0 2.5 4.0 FAQ 1.25 1.24 2.0 ABOUT US 3.0 2.5 2.0 CATEGORY PAGES 1.25 2 1.5 PRODUCT PAGES 1.25 1.5 1.25 HOMEPAGE .5 .5 .75 SUSTAINABLE FASHION BLOG 5.0 4.0 1 HOW WE GIVE BACK 4.0 5.0 .75 Scoring Methodology
  • 23. 23 DISPLAYSEARCHSOCIAL DISPLAYSEARCHSOCIAL COST PER PAGE VIEW COST PER PURCHASE INDEX POINT What It Looks Like
  • 24. 24 COST PER ORDER: $100 AVG REVENUE: $120 ROAS: 1.2 COST PER ORDER: $100 AVG REVENUE: $235 ROAS: 2.35 What It Results In
  • 25. +$13 Case Study Return on Ad Spend 2X+ Higher ROAS than Goal $17MM Revenue
  • 26. KNOW YOUR DATA: Audit & understand all available data for analysis. DON’T COMPARE APPLES TO ORANGES: Don't compare what you have been doing to what you're now doing. APPLY TO ALL CHANNELS: Once you've developed your weighted optimization strategy, don't implement it in siloes. 26 Recommendations IMPROVE AND REFINE FREQUENTLY: Re-assess and analyze your data frequently to keep in line with current consumer behavior patterns. DEVELOP FIRST TO MARKET OPPORTUNITIES: This process involves work, but with your insight, you can develop your own bespoke initiatives. BRING IN OUTSIDE DATA: Brainstorm what other data could help improve your optimizations.
  • 27. Key Steps for Custom Optimizations 27 1. Collect all available data at your disposal 2. Analyze the value of each digital interaction 3. Create a set of weighted scores based on these digital interactions 4. Build the weighted scores into your omnichannel reporting 5. Optimize media budgets based on weighted scores 6. Repeat steps 1-5 1. 2. 3. 4. 5. 6.
  • 28. Performance marketing webinar hub, including on-demand sessions covering search, social, ecommerce, retail media, programmatic, & more Additional Resources: Webinar Hub 28 www.catalystdigital.com/company/performance-marketing-webinars
  • 29. Digital commerce thought-leadership to help advertisers maximize success in the new world of commerce. Topics include shopper insights, Instacart Advertising, omni-channel strategy & execution, retailer partnership, & more. Additional Resources: Virtual Event Series 29 Every Wednesday, 1 – 2:30 pm ET www.catalystdigital.com/the-new-commerce-conference