Paid Search Analytics & Multi Touch Attribution Crispin Sheridan Senior Director, Global Search, SAP

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1 Paid Search Analytics & Multi Touch Attribution Crispin Sheridan Senior Director, Global Search, SAP Shanghai May 29-30, 2013 #SESSH

2 Annual revenue (IFRS) of 16,22 billion SAP Today More than 232,000 customers in 188 countries More than 65,667 employees and locations in more than130 countries A 41-year history of innovation and growth as a true industry leader Search managed centrally SEO: All countries PPC: 50+ Countries funded centrally SAP.com Site Search SAP.com Test Lab 500,000 pages Search Team: Agencies

3 SAP Customer Facts Shanghai May 29-30, 2013 #SESSH >50% >86% >70% >72% of the world s athletic footwear provided of the world s packages couriered of the world s chocolate production of the world s beer production >30 million households use energy more responsibly with Smart Grid solutions >2 million people work more safely using People Safety solutions >77,000 automobiles manufactured per day

4 SAP s Attribution Issues Long sales cycles Multiple individuals Interacting with all media types Multiple platforms Significant spend on Pull & Push marketing So! What is the Customer journey?

5 Digital Journeys with SAP Prior to Conversion Touch 1 Touch 2 Touch 3 Touch

6 Multiple Sources Multiple Paths Source: Strategic Oxygen now Forrester

7 Multiple Individuals One Deal Marketing Touch Points $

8 Then.. The customer research team agrees : let s take the next step with SAP

9 Which SAP Tactics get credit? The default methods: Last click A B C D Unfairly assigns credit to direct or Pull channels (e.g. SEM) Emphasizes branded keywords First click A B C D Unfairly assigns credit to awareness or Push channels (e.g. banners) Assigns credit even within a long look-back window

10 Challenge: Reports and analysis by silos Lead Generation Report: Tactic Leads PPC 451 SEO 620 Content Syndication 236 Social Media 134 Display Direct to web 502 Mobile site 43 Banners 90 Campaign Microsite 348 Total 2,798 Demonstrative data only

11 Attribution Models to the Rescue? Linear Splits credit evenly for simplicity s sake Value diminishes with more touches Potential to be just as misleading as last or first click 25% 25% 25% 25% Weighted Recency 40% Assigns credit on a curve Requires judgment calls/ guesswork Few tools do it on the fly 10% 10% Assigns credit based on length of time passed Sophisticated but tricky to code Usually requires manual programming 40% 40 days ago 10% 20 days ago 20% 2 days ago 30% Today 40%

12 So, Right Attribution Model, but what else?

13 Micro & Macro Elements of Investment Optimization Shanghai May 29-30, 2013 #SESSH MACRO Media Mix Modeling Digital Attribution MICRO Test and Learn

14 How best to optimize digital investment? Leverages aggregate level data Enables Macro level planning (all media)

15 How best to optimize digital investment? Granular (click-stream) user level data Provides holistic view of digital touch-points Enables finer digital mix optimization

16 How best to optimize digital investment? Goes beyond vehicle mix (e.g. testing message, offer, cadence, blend, etc.) Continual optimization of digital experience (Micro optimization)

17 So, Lets Focus on Micro First off: Digital Attribution Shanghai May 29-30, 2013 #SESSH Digital Attribution

18 Multivariate Attribution Analysis Reveals: How channel overlap impact conversion rates The true reach and frequency across touch-points The contribution of each action, channel, or message The optimal sequence of channel exposure to drive a conversion

19 What is required? TAGS Tagging Governance and Process Master Tag across all Digital Touch points

20 e.g. Touch contribution is indexed & data is pivoted Channel Contribution Index to Conversion A Banner Contribution Index to Conversion A Messages Contribution Index to Conversion A SEO 150 Discovery 160 Banner A 170 Banner 130 NFL 125 Banner D 150 Social Media 125 ESPN 110 Banner C 98 Online Video 115 CNET 95 Banner F 91 SEM 113 NY Times 85 Banner B 70 Microsite 105 Forbes 50 Banner E 65 Content Page 102 SAP Homepage 95 Demonstrative data only

21 Initial Results: MIX ACTION: Optimize Volume Conversion Rate Volume of Uniques Demonstrative data only

22 Finding: Optimal Frequency (for Conversion Rate) Action 5.0% Frequency & Conversion Rate (000) 700 Frequency & Uniques Conversion Rate 4.0% 3.0% 2.0% 1.0% 7-17 frequency to conversion sweet spot Uniques retarget for more frequency sweet spot cap frequency wasted exposures 0.0% Frequency of Exposure Frequency of Exposure Demonstrative data only

23 Conversion Timeframe: First Touch to Conversion 69% 2% 2% 4% 1% 3% 7% 5% 3% 4% 0:00-0:30 0:31-1:00 1:01-2:00 2:01-24:00 24:01-48:00 48:01-7 days 7 days - 30 days 30 days - 60 days 60 days - 90 days 90 days - beyond 69% of conversions occur within 30 minutes of the first exposure Commitment to engage is limited, there is a small window of opportunity to influence conversion For the next phase, a timeframe breakout by vehicle will be interesting to see how prospects respond differently to each vehicle

24 Vehicle Last Touch Attributed Difference Introducer Volume Index Influencer Volume Index Shanghai May 29-30, 2013 #SESSH Attribution of Conversions for Media Vehicles Closer Volume Index Banner 4,634 4,248-8% SEO 3,732 3,839 3% SEM 1,792 2,035 14% rd Pty DG Promo % Social Referral Low Sample % Action re-allocate budgets from Banners to SEM Surprisingly, Banners act more as closers & SEM as openers SEM gained 14% additional conversion credit because it indexes very high as an introducer and has high overlap with other vehicles. Introducers get majority of the credit from the models.

25 Now, Test and Learn Test and Learn

26 SAP Test Lab is: 1. An internal team dedicated to testing SAP.com and campaigns. 2. Tools, resources, and processes to continuously optimize and validate marketing performance. +

27 Key Components Structure - Consistency Test Pipeline Management Insights & Reporting Prioritization Implementation

28 Test Lab Example Insight: Tailoring content based on incoming search keywords (Google Searches) has significant impact on conversion (lead generation). Control - Generic Headline Tailored, Dynamic Headlines Lift 120%* (concluded test) * 99% confidence Flexibility keyword phrases (below) lead to a headline with flexibility built into the headline, giving the visitor Custom development services Tailored software solutions an immediate sense of relevance. Customized software applications Custom application development Custom solutions for SAP software Adaptable software solutions Prebuilt software solutions Modular software solutions Modular software methodology

29 Together these drive Efficiency & Effectiveness MACRO Media Mix Modeling Digital Attribution MICRO Test and Learn

30 Key Takeaways Distinguish between Macro and Micro optimization Drive to your most relevant attribution model (s) Ensure proper tagging structure (master tag) Apply multivariate modeling & testing to optimize the impact of each tactic Commit finding and executing on your best set of attribution models

31 Thank you 谢 谢 Crispin Sheridan Senior Director, Global Search, SAP Shanghai May 29-30, 2013 #SESSH

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