TUI and Adobe talk maths, models and marketing

© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Paid search campaign optimisation: maths, models and marketing Emily Gudeman, Adobe | Chris Fensome, TUI Travel UK

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#AdobeSummit

ADOBE MULTI-CHANNEL ADVERTISING TECHNOLOGY


#AdobeSummit

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#AdobeSummit

History of Efficient Frontier Technology #Future of Digital


#AdobeSummit The Performance Difference

Using sophisticated math, we build Predictive Models based on the ad marketplace to simulate how they will perform at different bid levels

Portfolio Theory approach achieves the best performance by examining all possible tradeoffs across all ads simultaneously

When Predictive Models are combined with the Portfolio Theory approach, you can Forecast the performance of your campaign and optimize accordingly

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#Future of Digital


#AdobeSummit TUI Brands we work with

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#Future of Digital


#AdobeSummit First Choice Holidays

Part of the TUI Travel group which the largest Tour Operator in Europe

First Choice website is estimated to drive 59m visits in 2012 and over £370m in revenue

Paid Search is the largest driver of online bookings and makes up 15% of the total First Choice business

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#Future of Digital


#AdobeSummit What are we going to show you?

Increasing First Choice’s year-on-year

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paid search passengers by 77% for a 35% increase in cost

#Future of Digital


#AdobeSummit Key Takeaways

Leverage your campaign structure for maximum conversion

Understand how your money is being spent

Ensure your current campaigns follow best practice 1 2

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#Future of Digital


#AdobeSummit

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Discovery & Recommendations


#AdobeSummit What do we look for?

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• Seasonality phasing • Quality Score Mix • Simulation modelling • Uplift forecast

Exposure

Traffic

Conversion

Efficiency

• Keyword coverage • Bidding strategy • Bid frequency • Spend strategy & patterns • Match Type mix

• Competitive Landscape • Ad Copy • Ad Extension use • Promos/ Offers

• Conversion funnelling • Landing page relevance • Inventory Alignment

#Future of Digital


#AdobeSummit First Choice score card

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Optimisation

BudgetManagement

Matching

Adcopy /Keywords

Overall Score: 15/40

#Future of Digital


#AdobeSummit What did we find?

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Bid optimisation severely lacking

Keyword coverage needed to be more relevant

Ad copy should be fresher and better targeted

Budget management left money on the table

Yahoo/Bing seriously under-represented

#Future of Digital


#AdobeSummit See into the future

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Simulations will give you control over your spend investment

Decide what target best meets your goals

Available daily in MCAT dashboard

#Future of Digital


#AdobeSummit First Choice simulation

Daily

Pas

seng

ers

Daily Spend 15

Forecast a 24% increase in bookings at

the same spend level

Existing performance

#Future of Digital


#AdobeSummit Quick Wins

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Exposure

Traffic

Conversion

Efficiency

Increase phrase and exact match type mix

Expand keyword coverage to reflect product inventory

Change campaign settings to maximize daily exposure

Expand campaigns to Yahoo! & Bing

USP lead ad copy + Site links

Negative keywords to funnel traffic

Deep link landing pages

Use portfolio theory & sims in spend & bid management

#Future of Digital


#AdobeSummit 7 weeks to hit the High Season

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#Future of Digital


#AdobeSummit

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How did we do it?

#Future of Digital


#AdobeSummit Quick Wins

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Exposure

Traffic

Conversion

Efficiency

Increase phrase and exact match type mix

Expand keyword coverage to reflect product inventory

Change campaign settings to maximize daily exposure

Expand campaigns to Yahoo! & Bing

USP lead ad copy + Site links

Negative keywords to funnel traffic

Deep link landing pages

Use portfolio theory & sims in spend & bid management

#Future of Digital


#AdobeSummit Why Automation is needed – Bidding at Scale

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Spain Holidays Holidays to Spain

Holidays Spain Family Holidays in Spain

Cheap Holidays Spain Hotels Spain

All Inclusive Spain Holidays Spain Holidays

Weather in Spain Spain Holidays

Summer Holidays Spain

1m+ keywords 11 ads per page Costa clear favourite Impossible de clear a to del and holiday and you're Sol Luz of water for the and manage or Whether find Costa Costas de Golden the with these del make bids you'll beaches beauty nightlife of Sol la looking of the Blanca the beaches manually and de on Brits la favourite looking what Brits calm of what Whether 1m Costas or and Costa keywords = Spain entertainment sunshine on holiday the with Spanish 35 water the de Golden Costa entertainment Spain days Spanish to nightlife a sunshine optimise you'll for Costa Luz you're Almeria Costa Costa manually make calm you're looking or Almeria you're the find beauty and Blanca looking for o

Costa clear favourite Impossible de clear a to del and holiday and you're Sol Luz of water for the and manage or Whether find Costa Costas de Golden the with these del make bids you'll beaches beauty nightlife of Sol la looking of the Blanca the beaches manually and de on Brits la favourite looking what Brits calm of what Whether 1m Costas or and Costa keywords = Spain entertainment sunshine on holiday the with Spanish 35 water the de Golden Costa entertainment Spain days Spanish to nightlife a sunshine optimise you'll for Costa Luz you're Almeria Costa Costa manually make calm you're looking or Almeria you're the find beauty and Blanca looking for

Impossible to manage these bids manually

1m keywords = 35 days to

optimise manually

#Future of Digital


#AdobeSummit

Turning Destinations into Campaigns

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Plugs into Advanced Campaign

Management tool

Flat File of daily prices

250k holiday offers

Generate Keywords

Dynamic Pricing

Update Inventory

#Future of Digital


#AdobeSummit Automated Campaign Structure

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Feed

Search Query = “Spain Holidays”

Short Haul Broad Short Haul Exact

Top Destinations Broad

Top Destinations Exact Hotel Destination

Generics - Exact

Accommodation Broad Brand

Hols – Costa Del Sol

G_Eclipse_New

G_Hols_Destination

M_Holidays Destination

Y Holidays Destination Mainland Spain

Mainland Spain

Mobile Visibility

Dest - Spain

Port Aventura

Broad Mainland Spain

Hols – Costa Blanca Hols – Tenerife Hols – Costa Brava

Hols – Balerics

Hols – Ibiza Hols – Majorca

Hols – Menorca

Hols - Fueterventura

Old Structure

Spain Generics

Spain Research

Majorca Research Brand + Destination

Brand + Destination

Y_Brand + Destination

Y Mobile Visibility M Spain

Y - Spain Countries

New Structure

AD Center - Spain G - Spain

#Future of Digital


#AdobeSummit Automated Campaign Structure

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Feed

Broad 64%

Exact 36% Broad

50% Exact 40%

Phrase 10%

Oct 2011 Jan 2012

#Future of Digital


#AdobeSummit

Ad Copy Month Impressions Clicks CTR

Old Ad Copy Oct 2011 8,333,382 139,805 1.68%

New Ad Copy Jan 2012 30,964,657 810,152 2.62%

Destinations restructure: ad copy

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Old Ad Copy New Ad Copy

CTR increased by 56%!

#Future of Digital


#AdobeSummit Increased Spend investment based on performance and simulations

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Based on the actual performance of the programme improvements, and additional 86% was invested in January’s PPC spend

#Future of Digital


#AdobeSummit

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How did we do?

#Future of Digital


#AdobeSummit Why Automation is needed – Bidding at Scale

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Manual Bidding Automatic Bidding

#Future of Digital


#AdobeSummit Destinations Restructure: Year on Year Comparison

Decreased CPA by 51% and CPC by 24%

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Jan 25th 2011 - 28 Feb 2011 Jan 25th 2012 - Present

CPC

CPA

CPA

CPC

#Future of Digital


#AdobeSummit Targeted campaigns lead to increased conversions

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Feed

Decreased non brand CPA by 29% Reduced total bookings from expensive generic terms from 47% to 13%

£0 £100 £200 £300

Accommodation

Brand

Destinations

Generics

Other

20112012

0% 10% 20% 30% 40% 50%

Accommodation

Brand

Destinations

Generics

Other

20112012

Cost per Acquisition % of Total Passengers

#Future of Digital


#AdobeSummit Before & After Simulation – Jan 2012

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Daily

Boo

king

s

Daily Spend

Uplift through bid optimization

Uplift through account development

YoY in January pax increased by 77% & cost by 35%

Pre-sales Simulation

Jan ‘12 Simulation

#Future of Digital


#AdobeSummit The Results: 2012 vs 2011

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67%

77%

-26%

-23%

-4%

44%

-40% -20% 0% 20% 40% 60% 80% 100%YOY % Change

Passengers

Clicks

ROAS

Conversion Rate

Cost per Acquisition

Cost per Click

#Future of Digital


#AdobeSummit Key Takeaways

Leverage your campaign structure for maximum conversion

Understand how your money is being spent

Ensure your current campaigns follow best practice 1 2

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#Future of Digital


#AdobeSummit

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#AdobeSummit

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TUI and Adobe talk maths, models and marketing

Technology

Transcript of TUI and Adobe talk maths, models and marketing