NEWS “CRYSTAL BALL” FOR ONLINE CAMPAIGNS
Retailers now have access to a “crystal ball” which shows where and how to spend online ad budgets to deliver the greatest profit – through the launch of a predictive analytics platform from online retail specialists, Summit. Called Forecaster, it takes vast amounts of internal and
external data – from sources such as Google, transaction history, weather, location, stock availability and current TV ads – and applies complex statistical models to accurately predict the likely sales from a given marketing spend. To achieve the predicted sales, the platform then recommends how to adjust the bid level and messaging for paid search, display and product listing ads so the profit from each channel is maximised. “Forecaster was designed to answer the most difficult question
we are asked by clients – how much should I spend, in what online channel and what return can I expect,” explains Hedley Aylott, Summit’s CEO. “Tey want a crystal ball and this is as close as it gets. Predictive analytics is the most sophisticated and accurate form of campaign optimisation available and addresses the age old issue of establishing the correct budget. No more educated guesses and marketing based on preference – in trials with our major retail clients we’ve seen Forecaster increase margins from campaigns by as much as 900 per cent.” Forecaster’s predictive analytics engine was developed over
four years in collaboration with a team of PhD statisticians lead by Professor David Wooff from Durham University. Aylott continues: “Te distinguishing feature of Forecaster is
the number of customer buying triggers, such as weather and TV, that the platform uses to predict behaviour – no other platform
Outlook for the eCommerce sector in 2015
Criteo has revealed its 2015 eCommerce Industry Outlook report, which highlights key trends that will have a significant impact on the industry over the course of the year. Predictions, based on data insights from billions of online transactions, include: •
Enhancing cross-device capabilities will be a major focus as 58 per cent of retail executives and ad agencies rank the technology as the most important of their 2015 mobile marketing efforts
• Rapid growth in native advertising will be driven by programmatic buying
•
Brick-and-mortar retailers will heavily focus on online strategies as webrooming and showrooming will have an increasing impact on sales
• Retailers will put a heavy emphasis on app re-engagement as 42 per cent of retail executives and ad agencies rank consumer engagement as the primary goal of mobile app strategies
“2015 will be a dynamic year for the eCommerce industry
as consumer online shopping behaviour continues to evolve at a rapid pace. Te growth in time spent across multiple screens means marketers need to manage more complexity when targeting consumers,” said Eric Eichmann, President and COO, Criteo. “Advertisers who stay ahead of the curve by making sound investments in solutions like cross-device targeting and mobile-optimised websites and apps will be best positioned to meet consumer demand and generate sales.” To access Criteo’s complete report, visit
www.criteo.com
Charles Tyrwhitt amongst charter clients for yReceipts
A digital receipts solution from yReceipts has been backed by Andy Morrey, former Argos eCommerce director and his co-director in eNova Partnership, Sophie Albizua. Te digital receipts technology enables bricks and mortar retailers to provide customers with electronic receipts and thus create a bridge between physical and ecommerce data. Early clients of yReceipts include Charles Tyrwhitt, Mothercare and LK Bennett.
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on the market has as many and our use of TV is unique. We ‘fingerprint’ TV ads by client and their competitors – when a TV ad appears, we instantly make changes to the client’s online ads. For example, PC World advertises a tablet, we increase bids for Argos tablet ads for a set period of time to ensure we capture people who go online to buy after seeing the TV ad.” Forecaster uncovers patterns in the data that can be used to
adjust and optimise marketing campaigns, for instance: •
Sledges: search volumes increase by 300 per cent on snow days with click-thru rates increasing by a third with each 1° decrease in temperature. Conversion rates double once the temperature drops below -3°
• Paddling Pools: 100 extra units sell with each 1° increase in temperature above 20°, however, if the temperature is less than 2° above the historical average it doesn’t affect search volume
• Lawn mowers: 60 per cent of all sales in spring/summer months occur between 15-20°C but they peak at 17° after which they drop off
• • TV ads: the biggest increase in search volume occurs within 10 minutes of an ad, particularly between 8:00- 9:30pm; 30 second ads increase search traffic by 11% more than 20 second ads.
A campaign for Argos, using the Forecaster system, increased
paid search traffic by 33 per cent, sales by 31 per cent , lifted conversion rates by nearly 5 per cent and the average order value by 18 per cent . Ultimately, the cost of each sale fell 14
Gap to expand its online presence in Europe
Gap is to work via Zalando in a bid to build its market share in Europe, particularly in regions where it has sparse retail store coverage. Zalando stocks a range of brands, including Converse and Gant, and operates in 15 European countries including Spain, Germany and the UK. Te Gap offering will be live via Zalando in the summer.
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