What We Learned from eCommerce This Holiday Season

8/3/2019 What We Learned from eCommerce This Holiday Season

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What We Learned fromeCommerce this Holiday Season

Jessica FisherKevin Cheung

Ian MackieJanuary 25 th 2012


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Presentation Agenda

About Point It

Launched in April 2002 Seattles largest independent

search marketing firm PPC & SEO Conversion Optimization 40+ yrs of SEM experience

Servicing clients across allverticals and revenue models


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Overall Retail Sales from Nov. 1 st - Dec. 31 st 2011:

$471.5 Billion

Up 4.1% from last year E-Commerce Retail Sales from November 1 st December 31 st 2011:

$69.62 Billion Up 12.3% from last year

Presentation Agenda

2011 e-Commerce Statistics

*United States Dept. of e-Commerce


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Product & Order Value Trends


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Presentation Agenda

About the Client

E-Commerce Health & Beauty Industry

Holiday Spend: $170,000 November $240,000 December


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Presentation Agenda

Account Level Order Value Trends

Highest Value/Conversion Days: 11/25/2011 Black Friday 11/29/2011 Tuesday

Highest Cost/Conversion Days: 12/1/2011 Thursday (1 Week

After Thanksgiving) 12/23/2011 Friday


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Presentation AgendaHoliday Ad Copy Schedule

Cyber Monday launchedon Black Friday

Generic Holiday adslaunched November 30 th

Expedited Free Shippingads Dec. 19 th 21 st

Regular ads returned Dec.22 nd


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Presentation AgendaProduct Quantity Trends

Product quantities at their highest on Cyber Monday Spikes on days that had ad copy changes

Dec. 21st

Cyber Monday


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Presentation AgendaWhy does this matter?

Did the ad scheduleaffect performance?

Sometimes the returnisnt that great duringthe holidays

Why is spending moreimportant? Take advantage of

consumers willingness toshop

Great opportunity toincrease brand awareness


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Free Shipping Ads -How Did They Perform?


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Many companies offer FREE SHIPPING duringholidays.Original :

Womens Online Boutique The Seasons Newest Arrivals Are Here! See Whats on Sale Now.

Free Shipping :

Womens Online Boutique The Seasons Newest Arrivals Are Here! Free Shipping on All Orders.

Presentation AgendaFree Shipping Ads


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Expected Benefits:

Higher CTR Better Conversion Rate



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What We Learned:Client 1 ( 12/7/2011 12/27/2011) :

Some clients - Higher CTR & Higher Conversion Rate


Impressions Clicks CTR Conversion RateFree Shipping 42,541 1,834 4.31% 3.98%Non Free Shipping 114,159 4,508 3.95% 2.73%


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What We Learned:Client 2,3,4 ( 12/7/2011 12/27/2011) :

Lower CTR & Higher CR for some clients.


Impressions Clicks CTR Conversion Rate

Free Shipping 123,813 5,103 4.12% 2.19%Non Free Shipping 146,844 6,732 4.58% 2.02%

Impressions Clicks CTR Conversion Rate

Free Shipping 44,245 1,648 3.72% 2.06%Non Free Shipping 84,032 3,705 4.41% 1.62%

Impressions Clicks CTR Conversion RateFree Shipping 68,062 4,498 6.61% 1.80%Non Free Shipping 191,097 12,964 6.78% 1.66%


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What We Learned: Attractive offer but doesnt always lead to a higher

CTR in PPC ads.

Sometimes results in a higher Conversion Rate.

Bottom Line Results Vary soTest, Test, Test!



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When Did Customers Shop?


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Important to understand holiday trends toproperly set:

Budgets Bids Ad Scheduling

Presentation AgendaWhen Did Customers Shop?


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Daily Avg. CPC and Conversions Nov. 1 to Dec. 31


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What We Learned: Avg. CPCs and Orders spike before Cyber Monday

(Nov 25-28). Avg. CPCs remained high until Christmas.

11/1 to 11/24 Avg. CPC : $1.86 11/25 to 12/24 Avg. CPC : $2.79 (50% increase) 12/25 to 12/31 Avg. CPC : $1.76

Bid Aggressively to STAY COMPETITIVE!



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Daily Clicks and Impressions Nov. 1 to Dec. 31


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What We Learned: Clicks and Impressions increased a few days before

Cyber Monday. Remain higher until a few days before Christmas.

Set Campaign Budgets Appropriately

Dont miss out on Clicks/Impressions!



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Hourly Conversions and Cost/Conv. Nov. 1 to Dec. 31


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Conv. (1-per-click) Cost / conv. (1-per-click)


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What We Learned: 85% Conversions between 7AM to 8PM PST.

3.09% CR% between 7AM to 8PM ( 2.19% between8PM to 7AM)

$75.43 Cost/Conv. between 7AM to 8PM ( $110.82

between 8PM to 7AM - 47% higher! )



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What We Learned:

Customer purchases vary at different times.

Look at your historical data by hour.

Determine optimal ad scheduling.

Limited Budget? Ad Schedule!



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Google Analytics Multi-Channel Reports

Presentation Agenda


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Success metrics: Click-thru Rate (CTR) Traffic (clicks & impressions)

Conversions or Cost Per Conversion Total Revenue >> ROI or ROAS

Presentation AgendaMeasuring PPC Success


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Numbers dont lie? Lets think about that Low CTR = Poor Revenue? More Clicks & Impressions = positive ROI?

High CPCs = Negative ROAS?

All of these measurements are important & can

be very powerful, but they dont tell the wholestory

Presentation AgendaIs It Enough?


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Every marketer wants to find the most effective, profitable marketing mix for its products and services across allchannels, including paid search. source: Karen Burka @ Acquisio

26% of consumers that visit a store looking for a product subsequently buy

that item from a catalog; another 25% of consumers thatvisit a store subsequently purchase the product online.

In addition, more than two-thirds of catalog shoppersultimately purchase a product online, while 39% of website browsers purchase a product from a print

catalog. The Multi Channel Retail Report

Another study of more than 1,000 consumers by ArtTechnology Group (ATG) found that 78% use two or more channels to shop; 30% saidthey spread their spending across three channels. Source: Art Technology Group

What does this mean for PPC?

Presentation AgendaHow Do People Really Shop?


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Adwords

Conversions: day of click 1st Click Attribution - if a

user comes to the sitethrough an ad and thencomes back organically orthrough other mediums,AdWords will attribute thisconversion to AdWords

Analytics

Conversions : day of conversion

Last-Click Attribution if auser comes to the sitethrough an ad and thencomes back organically,Analytics will attribute thisconversion to organic

Presentation AgendaConversions & Attribution


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Last Click Attribution Unless last visit is Direct

Didnt someone say the last click model is flawed?

Presentation AgendaGoogle Analytics


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Presentation AgendaMulti-Channel Report

A report that shows which channels your customers interactedwith during the 30 days prior to converting or purchasing .

Public release end of August New version of Google Analytics Only Need Goals or eCommerce tracking

Whats the big deal?

How marketing channels work together (assisted conversions) What happened before the last click How many days pass before the conversion How many interactions before conversion


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Presentation AgendaMulti-Channel Report Overview

How marketing channels work together!


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What path did the visitor take?


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How many days to conversion?


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How many interactions before conversion


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Presentation AgendaAssisted Conversions

Assisted Conversion Analysis

First Conversion Analysis

A value close to 0 indicates that this channelfunctioned primarily as the final conversioninteraction. A value close to 1 indicates thatthis channel functioned equally in an assistrole and as the final conversion interaction.

The more this value exceeds 1, the more thischannel functioned in an assist role.

A value close to 0 indicates that this channel functionedprimarily as the final conversion interaction. A value close to 1

indicates that this channel was as frequently the firstinteraction on the conversion path as it was the final

conversion interaction. The more this value exceeds 1, themore this channel functioned as the first interaction on the

conversion path.


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What Campaigns appear to be working

Low ROIcampaign

or is it


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Again, low ROI campaigns providing a lot of assisted conversions


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Why its cool:

How marketing channels work together (assisted conversions)What happened before the last click

How many days pass before the conversionHow many interactions before conversion

Giving credit where credit is due


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Presentation AgendaQ&A

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What We Learned from eCommerce This Holiday Season

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