Programmatic as a Retention DriverMark Fiske, VP Channel Marketing, Ancestry

October 1, 2015

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About Ancestry• Ancestry is the world's largest online family history resource. We are dedicated to helping everyone discover, preserve and share their family history.

• 11 Brands and presence in 9 markets

• >2MM paying subscribers

• >16 Billion records

• >70 Million family trees containing >6 Billion profiles

• ~35 MM visits/month (Comscore)

The Promise of Programmatic Realized

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Ad Sales: Simplified

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Tech Stack: Simplified

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Customer Insights: Advanced“User ID ABC123 clicked on page ID 376239, hovered mouse for 14 seconds over the headline, clicked “add to tree”, entered custom comment, hovered mouse for 6 seconds, clicked “share,” shared to six email addresses, clicked “submit,” clicked “home,” hovered mouse over pending suggestions for 10 seconds, clicked “review,” rejected pending suggestion ID 194829, hovered mouse for 4 seconds, rejected pending suggestion ID 128403, hovered mouse for 6 seconds, clicked “add to tree” to suggestion ID 983290, clicked “submit,” clicked “home,” hovered mouse over pending suggestions for 4 seconds, clicked “review,” rejected pending suggestion ID 194829, hovered mouse for 4 seconds, rejected pending suggestion ID 128403, hovered mouse for 6 seconds, clicked “add to tree” to suggestion ID 983290, clicked “home,” hovered mouse over pending suggestions for 9 seconds, clicked “review,” rejected pending suggestion ID 194829, hovered mouse for 4 seconds, rejected pending suggestion ID 128403, hovered mouse for 6 seconds, clicked “add to tree” to suggestion ID 983290, clicked “home,” hovered mouse over communications tab for 6seconds, clicked “review,” rejected pending suggestion ID 194829, hovered mouse for 4 seconds, rejected pending suggestion ID 128403, hovered mouse for 6 seconds, clicked “add to tree” to suggestion ID 983290, clicked “home,” hovered mouse over pending suggestions for 11 seconds, clicked “review,” rejected pending suggestion ID 194829, hovered mouse for 4 seconds, rejected pending suggestion ID 128403, hovered mouse for 6 seconds, clicked “pedigree view” on ID 983290 clicked “home,” hovered mouse over pending suggestions for 2 seconds, clicked “review,” rejected pending suggestion ID…”

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Customer Experience: Well…

Let me show you that product again… 37 times

So, what has changed with technology?• Ways in which we can identify behaviors• Ability to communicate on a 1:1 basis like never before• Sheer quantity of channels in which we can communicate with customers• Ability to leverage media once only seen as “acquisition/branding”

And yet… Show of hands…In my company, CRM is… Cumulative

Touches/weekEmail 1.5Email + On-Site Banner 7Above + Mobile Push 8Above + Off-Site Programmatic 32Above + AdWords RLSA 34Above + Facebook WCA 49Above + Direct Mail 50

97% of Opportunity

Missed

Programmatic as CRM Driver

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Defining Channel<->Message Interaction• Test into target frequency by message

•Understand what is/is not profitable by channel• Apply Common Sense

• Define media channel mix per segment/message based on expected RPM “R” is important!  Retention & frequency have value, know it!

Test & Control

Testing: Profitability

• Target frequency of 16 per person before wasting impressions• Message-level LTR/1000 impressions = $1.37

Channel Channel Touches/week

Cost/1000

Email 1.5 $0.01

Email + On-Site Banner 5.5 $0.02

Above + Mobile Push 1 $0.03Above + Off-Site Banner 24 $1.00Above + AdWords RLSA 2 $1.30

Above + Facebook WCA 15 $1.40

Above + Direct Mail 2 $300

No further return on impressions

Unprofitable

Sample Interaction Mapping

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Communication Segment Email Site Banner

Program.Banner

FacebookNewsfeed - Cust. Aud

FB Newsfeed- Pixel

Postal Mail Mobile Push

AdWordsBrandRLSA

“Hints” – Engagement/Retention

“Message Waiting” – Engagement/Retention

Recently Canceled – Timed Reactivation

Free Trialer - Education

Military Searcher – Cross-Sell

Global Interest - Upsell

Campaign – Free Access

Card Decline - Transactional

Align Organizational Structure, Goals

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This Org Isn’t Bad…

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CMO

Channels

SEM

Display

FB

Etc

CRM

Email

Campaigns

PR

Partnerships

Earned Outreach

So Long as Shared Goals

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Team Old Goal New Goal

Channels X New Subscribers $X LTR

CRM Y ReactivationsZ New SubsN Churn Decrease

$Y LTR

PR P Pieces picked upZ Reach

$Z LTR*

This Org Isn’t Bad…

• Testing key to understand LTR impact of ‘contributor Events’ X decrease in churn

Per piece mailed

• Budget Accordingly: Stop thinking of retention as free

Infrastructure

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Uniform Definition of Customer• Define who owns customer segment logic

• Create one source with mappings across all customers/prospects

• Open System:  Consumers can feed data in / data out Flat File API Accessible to website services

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Reinventing Approach: Test, Rinse, Repeat• Your current marketing experience is likely the product of years of testing

• Start with obvious• Develop iterative testing process• Expect & encourage failure

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One of Dozens of Use Cases At Ancestry…

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Email On-Site Display

Off-Site Display

Social Mobile

And it works!

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• Significant lift vs. controlgroups receiving messagingvia solely email channel

• As with all media, granular testingachieves best results

Control Exposed LiftRegistrants 0.0% 1.2% N/A

Current Free Trialers 16.2% 26.8% 65.4%Previous Trialers 0.0% 1.4% N/A

All Others 7.5% 8.3% 10.7%TOTAL 5.9% 9.4% 58.9%

Conversion Rate

Ancestry Current Previous AllRegistrant Free Trail Trialer Others Previous Subs Current Subs

Control 0.0% 16.2% 0.0% 7.5% 0.0% 76.0%Exposed 1.2% 26.8% 1.4% 8.3% 8.3% 79.9%

Generic 1.3% 21.1% 1.8% 10.4% 10.7% 82.1%Specific Hint counts 1.2% 27.5% 1.4% 8.0% 7.9% 79.6%1 0.5% 24.8% 0.7% 3.4% 4.2% 73.1%2 0.6% 27.1% 0.9% 5.1% 4.5% 72.9%3 0.7% 21.9% 0.4% 4.4% 4.4% 70.6%4 0.7% 23.9% 0.8% 4.1% 4.8% 72.1%5 0.7% 24.4% 0.8% 6.3% 3.8% 70.9%6 0.9% 26.2% 1.3% 4.7% 4.7% 72.5%7 1.3% 26.1% 0.9% 4.5% 4.6% 72.8%8 1.1% 32.9% 1.0% 4.9% 6.2% 72.2%9 1.1% 27.7% 0.9% 4.4% 6.3% 75.5%10 1.2% 29.1% 1.1% 7.0% 6.2% 75.1%11 1.6% 30.4% 1.3% 6.6% 6.8% 73.7%12 1.6% 31.3% 2.0% 6.0% 5.8% 73.8%13-23 1.5% 25.0% 1.1% 6.3% 5.9% 74.5%24-99 1.9% 29.0% 1.3% 7.3% 6.0% 78.2%100-199 2.7% 30.4% 2.0% 10.9% 7.7% 81.8%200+ 2.4% 27.8% 2.3% 12.3% 8.4% 81.5%1000+ 3.4% 31.5% 3.2% 18.7% 15.0% 86.7%

Registrants (Never Subscribed)

Take-Aways• Thinking of programmatic as a retention driver can increase engagement opportunities 97%

• Aligning teams around LTR goals creates common language without significant organizational change

• Test into optimal frequency, channel by message to define interaction mapping

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Thank you, questionsMark Fiske@thefiske

APPENDIX

Technology Key

• Focus on ETL times, system of record Near-real-time key, hours not an option

• Tag Management System Sounds so 2010, but needed for conditional logic

• Data Management Platform Not just display any more

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Technology – Ancestry Past (24-48 hours)Data

FTPBIT 

24 Hour Wait

Web Analytics

Tool

Web Analytics

Data Feed

Rest API

Marketing Segmentation Tool

Email Service Provider

Onsite Display Ad Server

Offsite Display Platform

Processing

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The RX for 1:1 multichannel success(in this order)• Focus on core customer value proposition

• Develop interaction mapping

• Align organizational structure & goals

• Optimize infrastructure

• Test, rinse, repeat

Technology – Ancestry Present (<1 minute)

DataEmail Service

Provider

Onsite Display Ad Server

Offsite Display Platform

3rd PartyDMP

3rd PartyTag Mgr

AdWords RLSA

Facebook WCA

Technology – Why Latency Matters

0-1 Hour 1-3 Hours 3-4 Hours 24+ Hours

60%

16%

8%5%

Incremental Abandon Cart Volume By Send Time

Facebook• Website Custom Audience List

NOT just remarketing Recent audiences Tag Management tool for conditional fire

• “Traditional” Custom Audience List Campaigns Behaviors from 3+ mos ago Automate every x days

• Tie into Campaigns

AdWords RLSA• Not display remarketing

• Can be used to enable specific messaging for brand searchers

• Use tag manager to define audiences based on meaningful criteria

• Focus on persistent categorizations

• Results: Relevant messaging – Members only offer Reduction in wasted brand SEM spend Improvement in upsell rate

Testing: Target Frequency• For each messaging strategy & channel, test:

Lift by count of impressions:  Do you even need channel x to exhaust a given messaging opportunity?

LTR per 1K impressions

• Many channels won’t make sense for some messages