Paid Search SEO Social Media

Attribution CSEs Display

MULTICHANNEL ATTRIBUTION

RKG | Rimm-Kaufman Group

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

4

Paid Search Q1 Benchmarks > Non-Brand Paid Search

• Ad Spend up 29%, Ad Clicks up 32%, CPC down 2%

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Paid Search Q1 Benchmarks > Non-Brand Click-Through Rate

• Up 25% Year over Year

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Paid Search Q1 Benchmarks > Google Share Increasing

• Controls 84% of clicks, 85% of spend

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Paid Search Q1 Benchmarks > Bing Non-Brand Volume Declines…

…But traffic quality improves.

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PLAs have become hugely important

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Paid Search Q1 Benchmarks > Google Product Listing Ads

• PLAs made up 11% of Google clicks, but at an 18% lower CPC

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Organic Search Q1 Benchmarks > Not Provided Query Level Rises to 21%

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Organic Search Q1 Benchmarks > Engine Share

Google increased its lead in Q1 taking a 76% share of visits.

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Organic Search Q1 Benchmarks > Keyword Growth Despite (not provided) Impact

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

14

Organic Search Q1 Benchmarks > Mobile Trends

• Mobile share hit 12% in Q1. • Bounce rates for mobile run 10-20% higher than Desktop.

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Paid Search Q1 Benchmarks > Mobile Performance

• Mobile accounted for 13% of Q1 clicks • Google held a 91% share of mobile clicks

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The Device Matters

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Tablet DNA > 80% of usage 6 – 9 PM > 95% of usage over wifi > Higher traffic value than

desktop/laptop > Lower cpcs by position

than desktop/laptop > Huge range of ad formats > iPad > Kindle Fire

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Smartphone DNA > Significant traffic > 1/3 Local Intent > Poor ecom conversion > Apps pose tracking

challenge > Drives people to stores > Drives people in stores to

Amazon

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CSS versus M. versus Apps? > Apps can be powerful

customer retention tools > Apps are problematic for

new customers > M. seems a mixed bag > Google seems to be

betting on smart rendering “60 % of major brands do not have an acceptable mobile experience” -- Jason Spero

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

21

Who wants to be a Billionaire?

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Organic Search Q1 Benchmarks > Traffic from Top Social Domains

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25

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“New Girl” on Google

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“New Girl” on Bing

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Social Impacts on Search > Increased CTR for liked pages – images

help => Improved Quality Score

> Increased trust therefore conversion rates after the click, conceivably.

> Organic Search: Social signals replacing or augmenting links?

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

31

The Goal of Search Engines

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It’s really about personalization

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Is this the Ultimate Search Engine?

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

35

Better Success Metrics

Cost of Traffic

Value of Traffic

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What is Value?

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What is Value?

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All Orders are Not Equally Valuable

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Margin Rates Vary

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Return Rates Vary

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Customer Lifetime Value Varies

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All Leads Aren’t Created Equal

> “Cheap Car Insurance”

> “Car Insurance”

> “Lexus Insurance”

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Online isn’t the Whole Picture

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Last Touch vs Proper Attribution

Affiliate

Paid Search

Organic Brand Search

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Diminishing Marginal Returns

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Averages Can Be Deceiving

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Incremental View is Scary

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Profit Maximization View

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Marginal Analysis

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Average ROI <> Incremental ROI

Online Marketing: What’s New?

> Search: trend data, ad formats, and more > Devices: the challenge and opportunities > Social Media: the spreading influence > Personalization: the future? > Measuring Success: more important than ever > What’s New at RKG?

52

We’re Growing!

> Top 10 Globally

> Gaining Share

> Technology Advantage

> Expanding Services

Great Partnerships with the Engines

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"This is a fantastic blog post. They really get what we're trying to do with this feature, and all their commentary and analysis of what it can and can't do, and how to think about using it today, I think is spot on. In other words, it's a typical RKG blog post. "

"Quite balanced and very knowledgeable indeed. It is great to work with such a savvy team."

Google’s Product Team on Partnering with RKG:

http://www.youtube.com/watch?v=eAJ6TnXmAUw

Google Interviews RKG on DSA Experience

Marketing Keeps Getting Harder

Email

54

Portal Placements

Banner Ads

Affiliates

Paid Search SEO

Display Retargeting

Devices/ mobile sites/Ads In Apps

Social Media

Display Ads

Comparison Shopping

Marketing Mix?

Conversion Optimization

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Paid Search SEO Social Media

Attribution CSEs Display

MULTICHANNEL ATTRIBUTION

RKG | Rimm-Kaufman Group

RKG Acquired AudetteMedia > SEOs Highly Regarded…by Google!!!

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CSEs: Proactive Management

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Sale

s

Engine Revenue by Month

Google

Shopzilla

Amazon

RKG took over management in July 2011

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

December January

Sale

s

Google YOY Growth

1 year prior

RKG

> RKG can drive results quickly and sustainably across multiple engines with a proactive approach.

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CSEs: Proactive Management

RKG management began in July 2011

58% increase in YOY revenue, Jul-Dec 2011

92% increase in YOY revenue, Q4 2011

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Performance Display Results

“The overall results were extremely positive; the initial test revealed a 123% lift in conversion rates for the Lane Bryant vs. control ads. The campaign generated thousands of additional orders within our ROI target.“

Chris Kobus Former Online Marketing Manager

Charming Direct

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Display Success > RKG continues to optimize a client’s Display campaigns,

increasing sales while delivering at a sustainable A/S.

0.0 2.0 4.0 6.0 8.0 10.0 12.0

0.00%

1.00%

2.00%

3.00%

4.00%

Month 1 Month 2 Month 3

Retargeting

ROAS CTR CR

0.0

1.0

2.0

3.0

4.0

5.0

0.00%

0.50%

1.00%

1.50%

2.00%

Month 1 Month 2 Month 3

Site Targeting

ROAS CTR CR

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A large scale e-commerce retailer leveraging social ads to amplify the reach of a national contest:

0

500000

1000000

1500000

1 3 5 7 9 11 13 15 17 19

Impressions seen of any content associated with brand during

contest

Daily Total Impressions

Social Media Awareness Success

4100 fans added in 6 days Fans generate an enormous amount of content. Weekly active user-ship remains steady following promotion.

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Thank you for your business! > Q & A

> George Michie > gmichie@rimmkaufman.com > (434) 970-1010 x 108 > @georgemichie1