THE SALES & PROFIT ZONE INSIDE

PLA/SHOPPING CAMPAIGNS

WHO WE ARE

2

• Mission: To Help Digital Marketers Succeed Online.

• Incorporated: 2005.

• Global Offices: Princeton (HQ). London. Hyderabad.

• Team: 75+ fanatically analytical search marketers with over 5.5 MM

hours of hands-on retail search marketing experience.

CLIENT LIST

4

“”

Within 12 months

of implementing our

strategy, organic traffic

more than doubled &

transactions went up

significantly.

Ken Bausch,

VP Interactive Marketing,

World Kitchen

ABOUT NETELIXIR UNIVERSITY

NetElixir University was launched in 2012 with a vision of “democratizing the digital

marketing industry through exceptional knowledge and expertise sharing.”

Our goal is to share the best practices in retail + digital marketing with 10,000

businesses worldwide by 2015.

Join NetElixir University

https://www.linkedin.com/groups/NetElixir-University-4626057

ABOUT UDAYAN BOSE

6

Founder & CEO, NetElixir.

Founded PartyBingo.com (PartyGaming, Plc).

Guest Lecturer:

• Johnson School of Management, Cornell University.

• City University of New York, Baruch.

• Indian School of Business.

#netelixir

http://www.linkedin.com/in/udayanbose

ABOUT DON RODRIGUEZ

• Director, Analytics & Account Strategy

• Marketing is all about the math

• Former electrical engineer

• Teaches MBA classes at Rutgers

www.linkedin.com/in/donrodriguez

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{ }PLA PROFIT ZONE

METHODOLOGY

METHODOLOGY

• Started with 13 Hypotheses

• Aggregated 2 years of AdWords Performance Data – Segmented into Trademark, Non-Trademark and

PLA/Shopping Campaigns

– 6 Verticals evaluated• B2B

• Gifts

• Home Furnishings

• Hobby

• Health & Beauty

• Apparel

• Overall, analyzed over 1B impressions, and $60MM in CPC transactions

13 HYPOTHESES

1. All online retailers and etailers should be using PLAs in their online marketing mix

2. PLAs behavior varies dramatically by type of business

3. PLAs spend and revenue varies by month within market segments

4. PLA share of paid search spend and revenue is growing

5. PLAs are more effective than non-trademark ads, but not as effective as trademark ads

6. PLAs AOV and basket sizes are smaller

7. PLAs conversion rates are higher than non-trademark (NTM ) campaigns’ conversion rates

8. PLAs CPCs are higher

9. PLAs CPAs are lower vs NTM

10. PLA impression share (out of total impressions in the account) is growing

11. The law of diminishing returns applies to PLAs

12. Migration to Google Shopping improves PLA performance

13. PLAs produce incremental growth

WHY DO SHOPPING CAMPAIGNS?

12.8%

15.0%31.6%

37.5%

67.1%

38.4%

49%

{ }ARE

PRODUCT ADS

INCREMENTAL?

PLA/SHOPPING CAMPAIGN “INCREMENTALITY” ASSESSMENT

2013

2014NO PLAS

NO PLAS NO PLAS

BEFORE AFTER

Impressions +8%

Clicks -9%

Cost +7%

Impressions +51%

Clicks 21%

Cost 18%

YOY}{

PLAs

PLA/SHOPPING CAMPAIGNS APPEAR TO BE LARGELY INCREMENTAL

(AFTER SCENARIO)

+ 8 %

28%

15%

+ 51%

Impr

2013

Impr

2014

Clicks

2013

Clicks

2014

Cost

2014Cost 2013

SHOPPING CAMPAIGNS REQUIRE STRATEGY

PLA/SHOPPING NON-TRADEMARK TRADEMARK

% Rev 13% 18% 69%

% Cost 23% 58% 13%

ROAS 2.37 1.3 22.0

Conv Rate 2.4% 2.2% 4.7%

AOV $72 $85 $122

Basket Size 1.3 2.74 2.68

CPA $31 $66 $6

0%

20%

40%

60%

80%

100%

1 1.5 2 2.5 3 3.5 4 4.5 5

B/E gm vs r/c

PLAS/SHOPPING CAMPAIGNS PERFORMANCE VARIES BY BUSINESS TYPE

Untapped

Sales Potential

PLA SALES & THE “PROFIT ZONE”

PLAS/SHOPPING CAMPAIGNS SALES & PROFIT ZONES

{ }STRATEGIC

QUESTIONS FOR

YOUR SHOPPING

CAMPAIGNS

STRATEGIC QUESTIONS FOR YOUR SHOPPING CAMPAIGNS

• How does my PLA performance compare to my non-trademark performance?

• Is there room to improve my PLA performance?

• Am I following known best practices for Shopping Campaigns?

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The full list of questions are in the whitepaper.

BEST PRACTICES TO KEEP IN MIND

• Do SEO for PLAs

• Use merchant promotion feeds

• Keep your feed fresh

• Leverage industry benchmarking tools

for optimizing your bid strategies+99%+413%Sales +23%Orders +25%

MAXIMIZE GROSS MARGIN $ PER SQUARE INCH (OF SERP)

$

LEARN MORE ABOUT YOUR SHOPPING CAMPAIGNS

• Ask those strategic questions

• Adopt best practices

• Find your own PLA Sales & Profit Zone

• Read the PLA Profit Zone whitepaper

• Google Shopping Campaign case studies

– https://www.thinkwithgoogle.com/case-studies/us-mattress-wakes-up-online-sales.html

– https://www.thinkwithgoogle.com/case-studies/farfetch-tops-trends-with-google-shopping-

campaigns.html

• Fill out our webinar survey

{ }QUESTIONS?

Udayan Bose + Don Rodriguez + Marinn Hersh

NetElixir Inc. + 3 Independence Way Suite 203 + Princeton, NJ + 08540

{

PLA PERFORMANCE VS NTM PERFORMANCE

PLA/SHOPPING CAMPAIGNS TRENDS VARY BY BUSINESS

SOME USEFUL LINKS FROM GOOGLE

USE ITEM ID LEVEL REPORTING TO MONITOR AND CONTROL

COSTS, AS WELL AS TO IDENTIFY OPTIMIZATION OPPORTUNITIES