An Engineering Perspective: Magnetic Acquires New Technology

A Q&A with Mark Weiss, Magnetic’s VP of Engineering

What are you most excited about by acquiring Adnamic?

The acquisition of Adnamic signals tremendous growth for Magnetic; however, for me, an equally exciting part of this partnership focuses on the technology. By combining Adnamic’s capabilities with Magnetic’s existing platform, we gain complete control over our product’s interaction with our audience and complete access to all of the data generated through the ad targeting process. We can now look beyond search data and gain insights into audience data collection and variables that impact real-time decision making, such as identifying the most valuable ad to show to a specific user, the optimal price, previous pages viewed, etc.

By analyzing multiple data points, we’re able to improve the performance of our product, while generating key insights that we can then pass on to our advertiser clients. By controlling every step of the advertising process, we are ultimately better equipped to deliver robust analytics and reporting, which in turn helps our advertising team optimize campaigns. Adnamic is helping us to propel forward into the real of heart of the data – analytics. It will be a fascinating few months as we work to build and evolve a platform beyond its existing model.

How will this enhance Magnetic’s product? 

Technology is the heart of our business. Adnamic’s platform technology is a great compliment to our existing infrastructure and will strengthen our product in a way that ultimately benefits our clients. Through this partnership, we will be able to improve campaign performance by making more precise decisions based on deeper insights into our audience search data, and access to complete data sets. In other words, we will become even more effective at reaching more customers who are interested in the message being delivered, which will ultimately drive performance.

What do you hope to achieve by acquiring Adnamic?

We will improve our platform by increasing its ability to operate on larger scale. We will also enrich our analytics platform to consider more data and make richer, more effective calculations about the value of each keyword and audience members for each campaign. Lastly, we will combine our years of experience with greater reach, control and access to data, in order to extend our market-leading position in search retargeting.

How will Adnamic fit into Magnetic’s organization?

The acquisition of Adnamic was a powerful next step for Magnetic’s organization. Our technology integration is already underway and I’m thrilled to welcome Joe Presbrey, founder and CTO of Adnamic, to Magnetic’s engineering team. We share a love of high-performance, distributed computing systems and the ability to extract knowledge from large data sets. And most importantly, we all believe in the same core engineering values: simplicity, efficiency and measurement over argument.

Bizrate Insights Reveals Favorable Consumer Attitude Toward Retargeting

A new survey from Bizrate Insights reveals that an overwhelming majority – 85% – of consumers have a positive or neutral outlook on retargeted display ads.

The study was based on 5,343 surveys from online shoppers after they completed purchases through online retailers affiliated with Bizrate, a unit of Shopzilla Inc.  Among those surveyed, 60% of the respondents say they feel neutral about retargeted ads, and 25% like them.

Among reasons for clicking on retargeted ads, the consumers mainly cited that they liked the product shown or that it served as a convenient way to visit a website of interest.

According to Bizrate Vice President, Hayley Silver, “Display retargeting is an effective way to re-engage with customers who have shown a direct interest in specific products.”

To learn more about the study, click here

Not All Digital Ads Are Created Equal

Digital advertising is on the rise, which is good news for us — the people that live and breathe in the online world.

However, as audiences migrate to digital media, better creative and more strategic ad placement is necessary. In today’s digital world, there is one point that must not be overlooked: not all digital ads are created equal.

Think about the traditional advertising world of billboards, TV ads, print magazine and newspaper ads. Each medium offers a different experience for consumers and can be associated with how consumers are spending their time.

Volkswagen knows which ad to place on a billboard while consumers drive by at 60 mph, and which ad to place in a newspaper, which consumers read on their commute to work or while they sip their morning coffee. The point is, marketers use different ads for different experiences. The same thing should be happening online across the various screens that consumers engage with.

New research from the Online Publishers Association shows that, for reading, 59% of tablet users surveyed prefer their tablet to their computer, 58% prefer tablet to a newspaper and 53% prefer tablets to magazines.

Other research dives deeper into how consumers use mobile devices throughout the day. According to InMobi, the average mobile web user consumes more than 7 hours of media per day — and 27% is spent on mobile devices (nearly 2 hours). Of that 2-hour period, 25% is spent while commuting to work, 15% while shopping, 67% while lying in bed and 39% while watching TV.

 

InMobi, Decision Fuel & On Device Research, Mobie Media Consumption Research, February 2012

 

The growth of innovation in mobile devices and tablets has led to heightened consumer engagement across all screens, at all times. Each of these technologies offers different experiences to the end user, engaging them through various features.

What Are They Doing On Their Tablets, And Where?

Consider when someone uses a desktop computer vs. when they use a tablet vs. a mobile device. Consumers may use their tablet device while lounging on their couch at home — which replaces activity they might have conducted in the past on their home desktop computer.

The Pew Research Center has uncovered multiple findings on time spent across devices and how consumers are using tablets and mobile devices compared to laptops. The site traffic from mobile provides advertisers with insight into user activity, as well as insight into on what device the activity is taking place.

One finding concluded that 42% of tablet users regularly read in-depth news articles and that people are using tablets as their primary news source. Prior to tablets, 79% of consumers retained their news from their desktop/laptop, 59% from a print newspaper or magazine and 57% from television. Research proves that times are changing.

Ads Should Match Activities And Mindset

The reason for using each digital device, and even when and where they are being used, then comes into play and should be reflected in the ads that are presented to users.

If advertisers layer on information about usage when they’re considering campaign buys, they can better decide which messages should be reaching what audience and what type of ad unit is served. Essentially, campaign goals and measurement will vary by device, by ad unit and creative.

Some research firms have started to explore how consumers use search on laptops more often vs. tablets and smartphones. For an advertiser, this means that consumers may be conducting more research from a laptop or desktop.

This might lead marketers to leverage strategies like search retargeting or behavioral advertising, which influence brand preference and buying decisions during the consideration process.

A new study from Adobe suggests that consumers are most engaged when watching video ads on tablets and smartphones. Additionally, Adobe’s study suggests that the number of people watching video content online could grow as much as 50% over the next five years.

One of the reasons for rapid growth of online video consumption is the use of social media. The rise of social media has led to easier sharing capabilities for video, making them more widely viewed — and social media has also provided advertisers with the ability to reach new audiences beyond their current ones.

For example, Facebook allows brand advertisers to show ads within users’ news feeds, and Twitter features promoted tweets that users are unable to ignore. Social media’s core is all about sharing, and this gives advertisers the opportunity to target a broader audience.

 

Article originally published on Marketing Land on 7/9/12

“Search” Beyond the “Engine”: Alternative Search Sites

By now, you’ve all heard about this new whatchamacallit – the Googles. We all use the Googles quite a bit in our daily routines, and some of us even do a bit of marketing on them, too.

However, as search evolves and continues to be fused with display, it’s important for marketers to take a step back and consider how and why consumers use conventional search engines, what type of data is afforded from these search engines and what types of results marketers want to gain.

Why Do Consumers Use Search Engines?

1.  People use search engines to decide ifthey want to buy a product or service. 

Most people use Google, Yahoo! or Bing to initiate the purchase cycle when seeking a product to buy.

The goal at this point of the consideration process is to decide whether or not they’re interested in a product at all. Think of the moment (hopefully years ago) that you finally decided to replace your Blackberry (sorry, RIM) with an iPhone or an Android.

Note: If you haven’t yet switched, then this means you’re currently performing the search example I’ve illustrated below. Or, you should be.

Say you visited one of the larger search engines like Google and searched “iPhone vs. Android” or “smartphone comparison.” You weren’t planning on purchasing a replacement on the spot, but rather, you wanted to research both types of smartphones with the plan of eventually narrowing down your choice to just one of the two.

The goal of your search was to begin the product consideration process and decide if you wanted a replacement for your Blackberry (in this example, the “Blackberry replacement” itself is the product).

2.  People use search engines to find the exact product they want to purchase.

After you’ve performed the above search, you likely won’t come back to search on Google, Yahoo! or Bing until you’ve decided on the exact product that you want.

Something important happened between the first round of “iPhone vs. Android” searches and your final search, “Verizon iPhone 4S NYC sale” – but we’ll get to that in a moment.

The point is that once you’ve made up your mind, you are less likely to navigate Verizon’s website. You want Google to do the work for you, so you type in a super-descriptive search as a way of saying “Hey, Google, the least you can do is save me some time by navigating me to the product page.”

Google obliges by providing you with the exact result that you were seeking, and you then go on to purchase your shiny new addiction.

To summarize the above example: you used Google to confirm that you wanted to replace your Blackberry, and then you circled back to Google when you were ready to pull the trigger on a purchase.

But What Happened In Between?

If you’re like most consumers, you did quite a bit of research in between your first wave of Google searches and your final “purchase search” on Google.

Earlier this year, PwC surveyed consumers’ online behaviors and released a report showing that nearly 88% of consumers conducted research online before purchasing a product.

In the Blackberry replacement scenario, consumers most likely conducted their research on vertical sites with product reviews and shopping comparison engines, such as CNET, Engadget or even eBay.

The time during which consumers gather information about a product that they are interested in represents the optimal time for brands to influence customer brand preference and purchasing decisions. Consumers want to research product features, user reviews and average prices.

Throughout this process, how did those consumers conduct their online navigation? Through search! However, they did not search on search engines; instead, they were searching within alternative search properties that have a search box within their site.

According to comScore data, approximately 62 million U.S. searches will take place on search engines on an average day – and more than 33 million will take place on alternative search sites. These numbers indicate a lot of search activity happening beyond search engines.

What Does This Mean For Marketers?

Users begin and end their purchase processes on major search engines, but they’re actually deciding on the specific product that they want, the vendor they want it from and the price that they’re comfortable paying for it by performing searches on alternative sites.

comScore data also shows that searches on alternative search websites can be up to 14% greater in length than searches on traditional search engines.

Because of this, brands can reach deeper into funnel stages through alternative search, as the more specific consumers are with their search, the easier it is to target those consumers that are in purchase mode.

This also means that alternative search properties are collecting higher quality search data. (You can read more details around alternative search behaviors in a new report from my company, Magnetic, Searching Beyond Search: Life Beyond the Googleplex.)

To target people that have an idea of what they want, or people who have already made up their mind about a purchase, using data from Google, Yahoo! or Bing is the right approach.

However, in order to target people who are actively comparing your product against your competitors’ products (and to then help them choose your product over all others), marketers should consider data that comes from alternative search sites.

 

These “alternative” sources of data can drive new marketing strategies and provide brand marketers with a new mindset when it comes to whom they want to reach.

 

Article originally published on Search Engine Land on 7/5/12