Webinar: Data Science meets Search Engine Marketing

Webinar: Data Science meets Search Engine Marketing

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Alex Ortiz

• VP Marketing, QuanticMind

• Product Marketing, Salesforce

• Product, Rakuten / LinkShare

Justin Smith

• VP Data Science, QuanticMind

• VP of Analytics, Answers.com

• Manager of Analytics, NexTag

Marlin Gilbert

• VP Revenue, QuanticMind

• Industry Head, Google

• VP Business Development, Arcot



Harnessing the data explosion in paid search marketing

Why data science?

What does a data scientist look like?

Data science infrastructure

Questions and Answers


31%

63%70%

105%

Week 3 4 5 6

Not QuanticMind QuanticMind

Better performance

More revenue

More profit

More return on ad spend

Gross

Margin

% Lift

Wow!


More competition

Publisher changes

Larger scaleand budgets

Dedicated teams

Mission criticalto any marketing strategy

2006 2015

Advertising bought

with algorithms

Automated auctions

100B Google searches/mo**

1.25B Facebook Mobile MAUs***

Huge reach:

consumers shift

to digital*

2.8B Internet users

5.2B Mobile phone users

$133B Internet ad spend

Micro targeting with

granular data

“red john varvatos size 10.5”

Bid: -21% on mobile,

SF-SOMA, 2:13 pm

Sources: *KPCB Internet Trends 2015

** thinkwithgoogle.com May 20015

*** MAUs=Monthly Active Users. http://investor.fb.com/releasedetail.cfm?ReleaseID=908022


Yesterday’s data

5 – 8 data points Every possible data point about a clickvs

Premature relationship of page views to purchase

probability

15

10

5

-20 -10 10 20 30 40 50 60

In depth seasonality and other insights

15

10

5

-20 -10 10 20 30 40 50 60

PUBLISHER PERFORMANCE EXTERNAL DRIVERS

Keyword Impressions Nasdaq Airport status

Match-type Clicks NYSE Sports calendar (US, UK)

Ads Minimum bid Fed interest rate Football

Placement Current bid Weather.com Soccer

Position Location Temperature Baseball

Slot Quality score Rain Basketball

Click-type Competition Humidity Holiday calendar

Landing page Zip code – demographic Events calendar

Time of day Tax Starbucks index

Day of week Education level Concerts (Live Nation)

Device Household income Competitive search

Marital status SEM Rush

Presence of children Keyword spy

Age SpyFu

Gender Google

ADVERTISER SEASONALITY

SCALING

FACTORS USER

Conversions Time Search engine Search query

Revenue Day of week Campaigns Device

LTV Month Keywords Geo/location

Revenue parameters Year Ad copy

Custom parameters Holidays

Business constraints

Other business metrics

Promotions

Today’s data

“Whether you’re doing business intelligence or building

products, if you don’t collect the data, you can’t use it.”

-DJ Patil

● U.S. Chief Data Scientist, White House Office of

Science and Technology Policy

● Advisor, QuanticMind

● Data Scientist in Residence, Greylock

● Head of Data Products, Chief Scientist, and Chief

Security Officer, LinkedIn

Source: O’reily Radar, “Building data science teams” by DJ Patil September 16, 2011

http://radar.oreilly.com/djpatil

“The ability to take data—to be able to understand it,

to process it, to extract value from it, to visualize it, to

communicate it—that’s going to be a hugely

important skill in the next decades”

- Hal Varian, Google’s Chief Economist

Source: McKinsey&Company,“Hal Varian on how the Web challenges managers” January 2009

http://www.mckinsey.com/insights/innovation/hal_varian_on_how_the_web_challenges_managers


Source: http://radar.oreilly.com/2011/09/building-data-science-teams.html?

Here is what DJ Patil looks for:

• Technical expertise

• Curiosity

• Storytelling

• Cleverness


Source: http://radar.oreilly.com/2011/09/building-data-science-teams.html?

Typical Methodology

• Data science & analytics

• Machine learning & analytics

• Statistical & financial modelling

• Company-wide test & learn strategy implementation & support

• Relational & distributed data infrastructure design & deployment

VP of Growth & Data Science

Typical responsibilities

• Digital marketing (social media, affiliate, e-commerce, SEM)

• Marketing automation (algorithmic) & ad tech platform development

• Customer acquisition portfolio optimization

• Data driven customer satisfaction & UX improvement strategy

Justin Smith

• VP Data Science, QuanticMind

• VP of Analytics, Answers.com

• Manager of Analytics, NexTag

Marlin Gilbert

• VP Revenue, QuanticMind

• Industry Head, Google

• VP Business Development, Arcot


Optimization

Predictive Analytics

Reporting/Monitoring

Data/Analytics Platform


Data platforms

• Consolidation/Cloud

• Data democratization

• Data granularity

• Data latency

• 3rd party data: API’s GA, stock market, weather, special events …etc.


Analytics platforms

• Robust software

• Automation/Error Checking

Software options

• SAS Institute

• R

• Reporting democratization

• KPI’s

• Monitoring/Alerting






Parameter Estimate Standard Error t Value Pr > |t|

Intercept 0.1249 0.000352 354.49 <.0001

product_type 1 -0.0804 0.000252 -319.54 <.0001

product_type 2 -0.0199 0.000252 -78.95 <.0001

product_type 3 -0.0861 0.000252 -342.23 <.0001

product_type 4 0.0192 0.000268 71.57 <.0001

day_of_week 0 -0.0001 0.000239 -0.33 0.7386

day_of_week 1 -0.0162 0.000227 -71.68 <.0001

day_of_week 2 -0.0163 0.000226 -72.01 <.0001

day_of_week 3 -0.0165 0.000239 -69.08 <.0001

day_of_week 4 -0.0165 0.000239 -69.30 <.0001

day_of_week 5 -0.0001 0.000239 -0.50 0.6167

zip 1 0.0217 0.000304 71.39 <.0001

zip 2 0.0188 0.000304 61.95 <.0001

zip 3 0.0134 0.000334 40.20 <.0001

zip 4 0.0129 0.000304 42.49 <.0001

zip 5 0.0100 0.000304 32.77 <.0001

zip 6 0.0067 0.000304 22.18 <.0001

zip 7 0.0057 0.000334 17.17 <.0001

zip 8 0.0009 0.000304 2.86 0.0043

zip 9 -0.0017 0.000304 -5.59 <.0001

product_type*before_16 1 0 0.0115 0.000275 41.70 <.0001

product_type*before_16 2 0 0.0000 0.000274 -0.01 0.9945

product_type*before_16 3 0 -0.0003 0.000274 -1.10 0.2735

product_type*before_16 4 0 0.0482 0.000328 147.02 <.0001

product_type*before_16 5 0 -0.0004 0.000328 -1.16 0.2479


• Segment campaigns to take advantage of clustered hourly modifiers

• Maximize Revenue vs Maximize Dollar Margin

• Non-linear programming


• Additional resources: QuanticMind.com/resources

– Blog posts: http://quanticmind.com/blog/

– Sign-up for performance marketing newsletter

– Register for QuanticMind Platform Live Demo

• E-mail: [email protected]


http://quanticmind.com/blog/

mailto:[email protected]

Thank You!