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Google Confidential and Proprietary The Shopping Transformation: How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail

How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

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Page 1: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

The Shopping Transformation:How to Strengthen Your Digital Backbone

Ari KurtzHead of Industry, Retail

Page 2: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 3: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 4: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

$4,568

$3,000 $2,953

Apple Warby

Parker

Tiffany

& Co.

Sales per square foot

Page 5: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Traditional Brick & Mortar Retailers are Adapting

Page 6: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 7: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1) Redefine traffic

2) Be everything; Be relevant

3) Surprise and Delight

Strengthen Your Digital Backbone

Page 8: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1) Redefine traffic

2) Be everything; Be relevant

3) Surprise and Delight

Strengthen Your Digital Backbone

Page 9: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

93%(% of sales in-store)

86%(% of sales digitally influenced)

Where are your sales happening?

Page 10: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Consult a professional

...Ask store attendant

Go to store...

Consumer Reports

Expert Reviews

Ask a friend

Then (1999)…K

NO

WL

ED

GE

TIME

Page 11: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Ask a friend

TIME

...Ask store attendant

Go to store...

Consumer Reports

Expert Reviews

Consult a

professional

NowK

NO

WL

ED

GE

Page 12: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Measure today’s meaning of traffic

Page 13: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

$1Investment in Google

AdWords

$8.Com Revenue

$8In-Store Revenue

+ = $16Total

Revenue

It’s more than just ROAS for online spend

Page 14: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

$1Investment in Google

AdWords

$8.Com Revenue

$4In-Store Revenue

+ = $12Total

Revenue

It’s more than just ROAS for online spend

Page 15: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1. Digital channels have a heavy influence on nearly all sales, not just

sales that happen online.

2. Retailers must measure and understand the impact of online traffic not

just online but also in store – and the impact of store traffic online.

3. KPIs should align with the new definition of traffic, and retailers must

organize properly to avoid creating bad internal incentives.

Key Takeaways

Page 16: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1) Redefine traffic

2) Be everything; be relevant

3) Surprise and Delight

Strengthen Your Digital Backbone

Page 17: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 18: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

27%

Micro Moment:Home Depot

Page 19: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 20: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1. Does your organizational structure support a channel agnostic

customer experience allowing you to be everywhere your customer is?

2. Are you making it dramatically easier for your consumers to quickly

and easily find what they are looking for?

3. Do you meet your customers where they are or do you wait for them to

come to you?

Key Takeaways

Page 21: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1) Redefine traffic

2) Be everything; be relevant

3) Surprise and Delight

Strengthen Your Digital Backbone

Page 22: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Page 23: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

“We don’t make money when

we sell things. We make

money when we help

customers make purchase

decisions.” - Jeff Bezos

Page 24: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Surprise and Delight pays off in the end

Page 25: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary
Page 26: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

1. Are you providing customers with engaging digital brand

experiences, strengthening relationships?

2. Does your content sit somewhere other than your brand site? And

are you reaching new audiences with it?

3. Are you making connections with people? Or are you just selling

stuff?

Key Takeaways

Page 27: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

AdWords Performance

Summit 2015

Page 28: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

AdWords Performance Summit Announcements

Ad experiences that

win the moment

Automation for relevance

in every moment

Measure every moment

that matters

Automobile ads

Hotel ads

Compare: insurance,

mortgages, credit cards

App promo in the Play Store

Dynamic Search Ads v2

Advancements in Auto Bidding

Target CPA Landscapes

Target Opt-in recommendations

Performance reporting v2

Full value of digital

Cross-device conversions in apps

ETC integration with bidding

Beyond the last click

Data-driven models

Cross-device search funnels

Attribution integration w/ bidding

Incrementality

Marketing experiments

Page 29: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

App Promo in the Play Store

Google Play reaches more than 1 billion people on

Android devices in more than 190 countries. App

discovery plays a critical role in building a successful

app business.

Initial beta: Search ads on Google Play is a limited

beta that brings sponsored results to Google Play.

For this pilot test, existing search app install

advertisers will begin to show for a subset of queries.

Page 30: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Dynamic Search Ads V2

DSA v2 is a new campaign creation flow for a more

simplistic and transparent way to setup the new

categories.

These new categories offer

more granular category suggestions logically

grouped to maximize advertisers’ traffic &

conversions

relevant, tailored bid recommendations for

each individual category

Example queries, sample URLs and creatives

for each individual category.

An simplified set up process for Dynamic Search Ads

Page 31: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Measure Every Moment that Matters

• AdWords attribution: You’ll be able to select an attribution model for each

of your conversion types. The choice you make will be reflected in your

AdWords reporting and integrated into your automated bidding.

• Cross-device conversions integrated with automated bidding: Later this

year, you’ll be able to take action on cross-device conversions are integrated

into automated bidding. This is part of a broader update that will give you the

option to include cross-device conversions as part of the Conversions

column

Automated bidding announcements within AdWords

Page 32: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Shopping Enhancements

PLAs in Gmail

Flexible bid strategies

Page 33: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Mobile Shopping Enhancements

Hands free shopping

Expandable shopping card

Local inventory ads

Page 34: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Questions?

#MRKGSummit15

Page 35: How to Strengthen Your Digital Backbone - Merkle Inc. of 7-Merkle-R… · How to Strengthen Your Digital Backbone Ari Kurtz Head of Industry, Retail. Google Confidential and Proprietary

Google Confidential and Proprietary

Thank you!

#MRKGSummit15