Mainostajien liittoMainostajien liittoMainostajien liittoMainostajien liitto

ThoughtsThoughtsThoughtsThoughts on on on on measuringmeasuringmeasuringmeasuring digitaldigitaldigitaldigital marketingmarketingmarketingmarketing successsuccesssuccesssuccess

27.1. 2014

Lotta Kopra, partner

Magenta Advisory

Purpose and agendaPurpose and agendaPurpose and agendaPurpose and agenda

Purpose:

This material has been created for Mainostajien liitto event. The purpose of material is restricted to stimulate discussion in the discussion board.

Agenda:

• What does digital marketing look like today and tomorrow?

• How shall advertisers measure digital marketing success?

• Discussion: What kind of new competencies and skills do advertisers need to succeed?

11/21/11

The digitalization of consumers’ lives is transforming

marketing towards digital with accelerating speed

• Time consumption online continues to grow, especially

mobile

• Mobile, social and local are business as usual

• Intelligence going into the cloud

• Richer media, especially video

• Relevance, personalization

• Value moving from media space towards consumer

data

• The comeback of Walled Gardens

• Time consumption online continues to grow, especially

mobile

• Mobile, social and local are business as usual

• Intelligence going into the cloud

• Richer media, especially video

• Relevance, personalization

• Value moving from media space towards consumer

data

• The comeback of Walled Gardens

• Time consumption online continues to grow, especially

mobile

• Mobile, social and local are business as usual

• Intelligence going into the cloud

• Richer media, especially video

• Relevance, personalization

• Value moving from media space towards consumer

data

• The comeback of Walled Gardens

11/21/11

Advertisers need partners for different stages of the

digital marketing process

13.2.2014 3

MARKETING MARKETING MARKETING MARKETING

PLANNINGPLANNINGPLANNINGPLANNING

CAMPAIGN CAMPAIGN CAMPAIGN CAMPAIGN

CREATIONCREATIONCREATIONCREATION

MEDIA MEDIA MEDIA MEDIA

ACQUISITIONACQUISITIONACQUISITIONACQUISITION

CAMPAIGN CAMPAIGN CAMPAIGN CAMPAIGN

PUBLISHINGPUBLISHINGPUBLISHINGPUBLISHING

MARKETING MARKETING MARKETING MARKETING

ANALYTICSANALYTICSANALYTICSANALYTICS

MEDIA AGENCIES

ADVERTISING AGENCIES

PUBLISHERS

OTHER SERVICE PROVIDERS

CORECORE CORECORESUPPORTSUPPORT

CORECORESUPPORTSUPPORT SUPPORTSUPPORT

CORECORE SUPPORTSUPPORT

CONSULTANTSCONSULTANTS ANALYSTSANALYSTSCHANNEL

SPECIALISTS

CHANNEL

SPECIALISTS

Sources: Magenta Advisory analysis.

Taking advantage of the wealth of information on

marketing performance is often a major stretch

13.2.2014 4

MARKETING MARKETING MARKETING MARKETING

PLANNINGPLANNINGPLANNINGPLANNING

CAMPAIGN CAMPAIGN CAMPAIGN CAMPAIGN

CREATIONCREATIONCREATIONCREATION

MEDIA MEDIA MEDIA MEDIA

ACQUISITIONACQUISITIONACQUISITIONACQUISITION

CAMPAIGN CAMPAIGN CAMPAIGN CAMPAIGN

PUBLISHINGPUBLISHINGPUBLISHINGPUBLISHING

MARKETING MARKETING MARKETING MARKETING

ANALYTICSANALYTICSANALYTICSANALYTICS

OWNED MEDIA BOUGHT MEDIA EARNED MEDIA

Search traffic

reportsWebsite

conversion

reportsNewsletter

KPIs

Affiliate

marketing ROI SEM

performance Display

metrics

Facebook

campaign

performanceSocial media

reports Viral campaign

analytics

FUNNEL FUNNEL FUNNEL FUNNEL

PERFORMANCEPERFORMANCEPERFORMANCEPERFORMANCE

Sources: Magenta Advisory analysis.

13.2.2014 5

AWARENESSAWARENESSAWARENESSAWARENESS

CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION

CONVERSIONCONVERSIONCONVERSIONCONVERSION

LOYALTYLOYALTYLOYALTYLOYALTY

Business relevance of digital marketing depends largely on

the industry: there is no single right answer

Sources: Magenta Advisory analysis.

MARKETING & SALES FUNNELMARKETING & SALES FUNNELMARKETING & SALES FUNNELMARKETING & SALES FUNNEL

FastFastFastFast----moving moving moving moving

consumer consumer consumer consumer

goodsgoodsgoodsgoods Car salesCar salesCar salesCar sales

EXAMPLES OF WHERE DIGITAL MARKETING FITS IN DIFFERENT INDUSTRIESEXAMPLES OF WHERE DIGITAL MARKETING FITS IN DIFFERENT INDUSTRIESEXAMPLES OF WHERE DIGITAL MARKETING FITS IN DIFFERENT INDUSTRIESEXAMPLES OF WHERE DIGITAL MARKETING FITS IN DIFFERENT INDUSTRIES

TeleTeleTeleTele----

operatorsoperatorsoperatorsoperatorsRetailRetailRetailRetail

13.2.2014 6

AWARENESSAWARENESSAWARENESSAWARENESS

CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION

CONVERSIONCONVERSIONCONVERSIONCONVERSION

LOYALTYLOYALTYLOYALTYLOYALTY

The challenge lies inlies inlies inlies in understanding HOW understanding HOW understanding HOW understanding HOW digital marketing

can support business targets

� Category leader in discussion volume

� 80% positive discussion polarity

� 200,000 monthly product site visits

� N/A

� N/A

FMCG COMPANYFMCG COMPANYFMCG COMPANYFMCG COMPANY ONLINE RETAILERONLINE RETAILERONLINE RETAILERONLINE RETAILER

� 80% brand recognition

� 60% top of mind position

� 2,000,000 monthly visits

� <30% bounce rate

� Average visit duration >5 minutes

� 3.0% purchase conversion rate

� €150 average order value

� <40% return rate

� 50% of customers purchase more

than once / year

� +30 Net Promoter Score

ILLUSTRATIVE TARGET SETTING FOR TWO INDUSTRIESILLUSTRATIVE TARGET SETTING FOR TWO INDUSTRIESILLUSTRATIVE TARGET SETTING FOR TWO INDUSTRIESILLUSTRATIVE TARGET SETTING FOR TWO INDUSTRIES

� 80% brand recognition

� 60% top of mind position

� 50% share of voice

Sources: Magenta Advisory analysis.

MARKETING & SALES FUNNELMARKETING & SALES FUNNELMARKETING & SALES FUNNELMARKETING & SALES FUNNEL

13.2.2014 7

AWARENESSAWARENESSAWARENESSAWARENESS

CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION

CONVERSIONCONVERSIONCONVERSIONCONVERSION

LOYALTYLOYALTYLOYALTYLOYALTY

OWNED MEDIA

DISPLAY

DISPLAY

DISPLAY

DISPLAY

Digital media planning across owned, bought and earned

media is more complex than its offline counterpart

BOUGHT MEDIA EARNED MEDIA

RETARGETIN

GRETARGETIN

GRETARGETIN

GRETARGETIN

G

AFF

ILIA

TE

AFF

ILIA

TE

AFF

ILIA

TE

AFF

ILIA

TE

SEM

SEM

SEM

SEM

DIRECT

DIRECT

DIRECT

DIRECT

FORUMS

FORUMS

FORUMS

FORUMS

RATIN

GS & REVIEW

SRATIN

GS & REVIEW

SRATIN

GS & REVIEW

SRATIN

GS & REVIEW

S

BLOGS

BLOGS

BLOGS

BLOGS

VIRALS

VIRALS

VIRALS

VIRALS

CAMPAIG

N SITE

CAMPAIG

N SITE

CAMPAIG

N SITE

CAMPAIG

N SITE

WEB &

MOBILE SITE

WEB &

MOBILE SITE

WEB &

MOBILE SITE

WEB &

MOBILE SITE

SEO

SEO

SEO

SEO

NEW

SLE

TTER

NEW

SLE

TTER

NEW

SLE

TTER

NEW

SLE

TTER

APPS

APPS

APPS

APPS

TW

ITTER

TW

ITTER

TW

ITTER

TW

ITTER

FB FANS

FB FANS

FB FANS

FB FANS

MARKETING & SALES FUNNEL

EXAMPLES OF HOW DIGITAL MARKETING TOOLS FIT THE MARKETING & SALES FUNNELEXAMPLES OF HOW DIGITAL MARKETING TOOLS FIT THE MARKETING & SALES FUNNELEXAMPLES OF HOW DIGITAL MARKETING TOOLS FIT THE MARKETING & SALES FUNNELEXAMPLES OF HOW DIGITAL MARKETING TOOLS FIT THE MARKETING & SALES FUNNEL

Sources: Magenta Advisory analysis.

13.2.2014 8

AWARENESSAWARENESSAWARENESSAWARENESS

CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION

CONVERSIONCONVERSIONCONVERSIONCONVERSION

LOYALTYLOYALTYLOYALTYLOYALTY

The challenge in planning campaigns is to create relevant

user journeys through the funnel

MARKETING & SALES FUNNEL

EXAMPLE ACTIVATION CONCEPT DRIVING CHRISTMAS SALES IN ONLINE STOREEXAMPLE ACTIVATION CONCEPT DRIVING CHRISTMAS SALES IN ONLINE STOREEXAMPLE ACTIVATION CONCEPT DRIVING CHRISTMAS SALES IN ONLINE STOREEXAMPLE ACTIVATION CONCEPT DRIVING CHRISTMAS SALES IN ONLINE STORE

ONLINE STORE:ONLINE STORE:ONLINE STORE:ONLINE STORE:

� CAMPAIGN

LANDING PAGE

� SEARCH

OPTIMIZATION

� MERCHANDIZING

NEWSLETTER: NEWSLETTER: NEWSLETTER: NEWSLETTER:

� DRIVE REPEAT

BUYERS

BLOGS: BLOGS: BLOGS: BLOGS:

� SEED TO

GENERATE

AWARENESS

DISPLAY ADS: DISPLAY ADS: DISPLAY ADS: DISPLAY ADS:

� TO GENERATE

AWARENESS

OWNED MEDIA BOUGHT MEDIA EARNED MEDIA

SEM: SEM: SEM: SEM:

� TURN AWARENESS

TO TRAFFIC

Sources: Magenta Advisory analysis.

11/21/11

MagentaMagentaMagentaMagenta AdvisoryAdvisoryAdvisoryAdvisory introductionintroductionintroductionintroduction

January, 2014

Lotta Kopra

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As Finland’s leading technology independent technology independent technology independent technology independent management advisoryadvisoryadvisoryadvisory in digital business –we help clients gain competitive advantage

digitallydigitallydigitallydigitally

12

Baseline of our growth will come from improving our market share within our existing Baseline of our growth will come from improving our market share within our existing Baseline of our growth will come from improving our market share within our existing Baseline of our growth will come from improving our market share within our existing

“high buying potential” clients…“high buying potential” clients…“high buying potential” clients…“high buying potential” clients…

DIGITAL TRANSFORMATION PROGRESS IN DIFFERENT INDUSTRIES

Industrial

goods

Industrial

services

Consumer

goods

Retail

Telecom

Finance

Media

High tech

Digital transformation progress

Travel

Time working on digital transformation

We are supporting many key players in their digital transformation…We are supporting many key players in their digital transformation…We are supporting many key players in their digital transformation…We are supporting many key players in their digital transformation…

Public sector

13

…throughout …throughout …throughout …throughout their digital transformation their digital transformation their digital transformation their digital transformation journeyjourneyjourneyjourney

STRATEGY BUSINESS EXCELLENCECAPABILITIES

DIGITAL MARKETING AND CRM

ONLINE AND OMNICHANNEL COMMERCE

MULTICHANNEL CUSTOMER CARE

DIGITAL PRODUCTS AND SERVICES

MAGENTA ADVISORY OFFERING

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