Analytics - and choosing your optimization goals

transcript

YAHOO! CONFIDENTIAL 1

Analytics - and Choosing your

DENNIS R. MORTENSEN | MAY 2010

optimization goals

Author Blogger WAA Yahoo! Entrepreneur

Choosing Why is this important ?

optimization goals.

You must serve the overall

purpose of the organization (of course)

KPIs The goals of most organizations are usually set as

KPI duplicates ?

Are your optimization goals,

NOT KPI duplicates,

If optimization goals are

KPI derivatives ?

surely they are

NOT KPI derivatives,

If optimization goals are

KPI derivative proxies ?

they must certainly be

None of the above – then what ? Certainly not CTR or Visits :-)

The further away your optimizations goals are from your organizational KPIs

– the higher the risk of applying direct harm.

(turning decent marketing initiatives into organizational de-optimization exercises)

Assuming we have an optimization goal metric,

that is well aligned with organizational KPIs

* we should be home safe, yes ?

An optimization goal is inheritably aligned with

(multiple online channels, and generally a changing universe)

attribution choices

attribution modeling ? Does the optimization goal apply for respectable

Assuming we have perfect organizational aligned goals,

that can be accurately attributed their fair success

* we should be home safe, yes ?

online marketing initiative. An online optimization goal in likely to be built into an

(mixing online and offline)

Media Mix Modeling ?

Does the optimization goal apply for respectable

attribution modeling in conjunction with

Example: Let’s have a look at how people attack PPC optimization goal setting

Impressions

Visit-to-Sales Conversion

Visitor-to-Sales Conversion

Revenue per Visit

Revenue per Visitor

Profit per Visitor

Lifetime Value of a Visitor

Customer Lifetime Value

In conclusion

Setting optimization goals:

You want to create marketing scenarios,

where you can predict an organizational aligned outcome

with a high level of confidence

AND it’s not easy

Want to know more about

VisualRevenue.com/blog or Twitter.com/DennisMortensen

Analytics, Media and Marketing?

Thank you Dennis R. Mortensen, Director of Data Insights at Yahoo! | dennis.mortensen@yahoo-inc.com

Blog: http://visualrevenue.com/blog

Book: http://visualrevenue.com/blog/yahoo-analytics-book

Twitter: http://twitter.com/DennisMortensen

Analytics - and choosing your optimization goals

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