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Managing Your Marketing Dollars:Cost-Effective Ways to Measure Your Spend and ROI
July 28, 2011
OUR SPONSOR
JACK NEFF
Editor-at-LargeAdvertising Age
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For CPG companies, a major challenge is
gaining visibility into marketing spend that
is spread across various categories and
brands. As a result, marketing processes
can become inefficient, bogged down by
this lack of insight.
OUR PANEL
Rex Briggs
CEO
Marketing Evolution
Mary O’Connell
Director, Global Digital Marketing and Public Relations
Clorox Co.
Monique Duquette
Sr. Applications Consultant
Aprimo
REX BRIGGS
CEO
Marketing Evolution
Rex Briggs, CEO Marketing [email protected]
Telmar Matterhorn ROI (TMR)
How the connection between Marketing ROI data and software will change marketing planning
What is a SIRF?And why does it matter?
Spend
Impact
Spend-to-Impact Response Function
The Most Broadly Validated Solution for ROI Measurement: The “Best Practice” Standard
1. Leading independent marketing & research associations
– The ARF (Advertising Research Foundation) in coordination with
- ANA (Association of National Advertisers)
- AAAA (American Association of Advertising Agencies)
2. Leading independent academics (partial list)
– Steven Levitt, award winning economist, University of Chicago, Author, Freakonomics
– John List, foremost field economist, University of Chicago
– Kirthi Kalayanam, digital and retail measurement leader, University of Santa Clara, author of several Harvard Business Review articles
3. Media companies & trade associations
– IAB (Interactive Advertising Bureau)
– NAA (Newspaper Association of America)
– Magazine (Time Inc, Conde Nast, Meredith, etc.)
– TV (Fox, Disney, MTV Networks, etc.)
4. Best practice reviews
– Corporate Executive Board, (B2C & B2B - US, Europe)
– Forrester
– ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages
– Journal of Advertising Research (Dec 06)
Partial list of Marketers:
TV (in-season)
TV (Trough months)*
Layering Media To Maximize ROI & Revenue
Search
Spend
Online
Case Example: CPG Marketer
Established Brand, seasonal purchase pattern, message designed to increase purchase intent
Social
• For years, Telmar has provided customized ROI software & service solutions
• Combines Reach/ Frequency to optimize ROI using a multi-media planning interface
• ME’s ROI experts have delivered 100s of cross-media ROMO engagements around the world
• ROMO benchmark data provides media impact across verticals, targets, campaign objectives and situations
Telmar Matterhorn ROI (TMR)The new syndicated ROI media planning solution, blending
the core competencies of Marketing Evolution & Telmar.
The Most Broadly Validated Solution for ROI Measurement: The “Best Practice” Standard
1. Leading independent marketing & research associations
– The ARF (Advertising Research Foundation) in coordination with
- ANA (Association of National Advertisers)
- AAAA (American Association of Advertising Agencies)
2. Leading independent academics (partial list)
– Steven Levitt, award winning economist, University of Chicago, Author, Freakonomics
– John List, foremost field economist, University of Chicago
– Kirthi Kalayanam, digital and retail measurement leader, University of Santa Clara, author of several Harvard Business Review articles
3. Media companies & trade associations
– IAB (Interactive Advertising Bureau)
– NAA (Newspaper Association of America)
– Magazine (Time Inc, Conde Nast, Meredith, etc.)
– TV (Fox, Disney, MTV Networks, etc.)
4. Best practice reviews
– Corporate Executive Board, (B2C & B2B - US, Europe)
– Forrester
– ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages
– Journal of Advertising Research (Dec 06)
Partial list of Marketers:
Different brands in different categories face different
challenges to growth…
…therefore need different optimizations
TMR Accounts for Different Categories & Objectives
– Awareness
– Positive Brand Perceptions
– Purchase Intent
– Advocacy
– Sales
Mass Media Model:
B2C
Social Media Model:
C2C1000 impression = $10
$10 CPM = $0.50 CPI
Old vs. New Model of Value Creation:
TMR accounts for BOTH.
Each interaction is an
impression
Pass
Along
Influenced to
interact with brand.
Some pass along.
No brand visit, but
positively influenced.
Some pass along.
Pass
along
continues
How Do We Create the Most Impact Per Dollar Spent?
Situation
Specific Media Placements
“Impact curves” of which placements deliver more value
+ Targets + Costs
Vertical-specific, campaign situation & marketer’s goals
+
‘Impact Based’ Recommendation
TMR Accounts for Different Marketing Objectives
Established BrandLower-funnel objectives
Unit sales up X% through impact on lower funnel metrics
Established Brand
Unit sales up X% through widening of the upper funnel
New BrandUpper-funnel objectives
New Brand
High awareness and
consideration leads to
looking to maximize sales
volume
New Brand challenge on
the other hand focuses on
familiarity and
consideration
Based on Benchmarks of Impact CurvesEach media channel has a different value,
depending on funnel objectives
Unit sales up X% through impact on lower funnel metrics
Established BrandNew Brand / P25-54
Customer Purchase Funnel & Campaign Impact Online
Magazine
Network TV
Radio
Of Ad Exposure
P25-54
Each point represents actual tracking responses from hundreds of ROMO client campaign studies
How Do We Create the Most Impact Per Dollar Spent?
Situation
Specific Media Placements
“Impact curves” of which placements deliver more value
+ Targets + Costs
Vertical-specific, campaign situation & marketer’s goals
+
‘Impact Based’ Recommendation
Changing The Objective Changes the Optimization
Purchase Intent: M25-54
Scenario Examples
Awareness: M25-54
Magazine Magazine
Digital Display
Cinema
Syndication
Cable TV
Changing objective to intent from awareness shows a noticeable shift from Network TV to Digital Display
Network TV
Digital Display
Cinema
Syndication
Network TV
Cable TV
Changing the Target Audience Changes Optimization
Awareness: W25-54
Scenario Examples
While overall changes aren’t drastic………….
Awareness: M25-54
Magazine MagazineDigital Display
Cinema
Syndication
Cable TV
Network TV
Digital Display
Cinema
Syndication
Network TV
Cable TV
Newspapers
More Granularity = Better ROI M25-54 W25-54
Digital (most to least $)• Search Engines•Weather•Sports•E-mail•Social
Digital (most to least $)• Search Engines•Weather•E-mail•Social•Entertainment
Network TV (most to least $)•Early News•Early Morning•Sunday Morning•Late Night•Sunday Night Football
Network TV (most to least $)•Early Morning•Daytime•Early News•Sunday Morning•Late Night
Magazines (most to least $)•Men•Fishing Hunting•Motorcycling•Automotive•Video Games
Magazines (most to least $)•Women•General Editorial•Health•Epicurean
What is `Basecamp’ vs ‘Summit’?
Our syndicated offering with 100+ levers in 10+ verticals
Swap in your own impact data, utilize customized cuts from ME’s database and/or go more granular with media levers, targets etc
TMR: Software-Based Command Center• Flexible planning tool , integrating multiple data feeds to enable alignment & collaboration • Marketing, research & agency teams can simulate trade-offs• Scenario Planning different budget levels, pricing, etc.
Telmar Matterhorn ROI (TMR)• A revolutionary new budget planning tool…
• Based on billions of dollars in marketing spending analyzed independently.
• Build plans on key metrics such as:
– Awareness, Brand Image Shift, Increasing Demand/Purchase Intent, Sales Conversion, etc.
• Currently serving the following verticals:
– Auto, Pharma, Entertainment, CPG (Food, Beverage, Health/Beauty)Restaurant, Retail, etc.
• Schedule a hands-on demo:
• Steve Riddle ([email protected])
• Jason Wertheimer ([email protected])
• Rex Briggs ([email protected])
MARY O’CONNELL
Director, Global Digital Marketing and Public RelationsClorox Co.
Measuring Return on Objectives
Mary O’Connell
Director l Digital Marketing l The Clorox Company
July 28, 2011
“80 percent of success
is showing up.”
-Woody Allen
Turning up the volume
Brand Volume
Each driver has a coefficient that
defines the direction and
magnitude of its effect on
volume.
Distribution
Base Price
TPR
Feature Only
Display Only
Feature&Display
Seasonality
FSI
Trend
Competition
Radio
TV
PR
Online Banner*
Website
Search
CRM-emails
Streaming Video
Facebook/Twitter
For most of us, current measurement models don’t capture ever increasing digital
executions in their current state
It’s a moving target
•Mobile, mobile everywhere
•Partial attention syndrome
•Immediacy and high alert
•Customization
•Hyper-targeting
The journey to real-time marketing
Digital Analytics for
growth and
competitive advantage
Starting Point
Success: Digital analytics
for real-time marketing and
ROI measurement for
demand creation
It’s as easy as:
1. Agree on objectives
2. Measure
3. Iterate
The goal: 360 measurement
Most current models
Financial
Measurement
Behavioral
Measurement
Attitudinal
Measurement
Financial
Measurement
Digital Engagement Ecosystem
Earl
y in
dic
tors
Spend/Tactic Optimization
and Forecasting
Insights: Strategic feedback for real-time marketing
Concluding indictor
Digital
Execution
Strategies &
Tactics
Innovation &
Business StrategiesDigital
Execution
Spend/Tactic Optimization
and Forecasting
Se
mi-a
nn
ua
lly
or
an
nu
ally
Expand scope of
Financial Measurement
Po
wer
of
Dig
ital
Real-time marketing
KPIs and Engagement Score
ROI and Efficiencies
Creating an engagement model: It starts with a game plan
-------------------------------------------------------------
“I wonder
what would
happen if….”
“If I do Y,
then Z will
happen…”
Set hypotheses l Map to growth priorities l Prioritize l Pre-commit to next steps
1 2 3333 43 4
All of digital is a learning lab. Treat it that way.
Rather than just
grabbing for the
latest shiny object,
test your way in.
You’ll accelerate
your learning.
The case for clear KPIs: Return on Objectives
1Agree on universal KPIs for each tactic, typically
volume/transactional metrics such as friends, followers,
sentiment, posts, ratings
2 Then set engagement metrics for the same tactics. If fans are
your universal KPI for Facebook, then set interactions per fan
as an engagement metric.
The engagement model : A bridge to financials (Social media example)
Transactional
Metrics
------------------------------------------------------------------------------------------------------------Friends
Followers
Sentiment
Posts
Ratings-----------------------------------------------------------------------------------
Financial
Outcomes
Financial
Outcomes
Behavioral
Objectives
Attitudinal
Objectives
Transactional
Metrics
•Sales
•Profits
•Sales
•Profits
•Behavioral metrics
•Qualified leads
•Engagement
indicators
•Attitudinal metrics
•Perceptions
•Affinity
•Likelihood to
recommend
Source: Corporate Executive Board
•Friends
•Followers
•Sentiment
•Posts
•Ratings
----------
----------
Multitude of metrics
Clicks
Impressions
Click-rate
Visits
Pageviews/Video Views
Bounce Rate
Emails Sent
Opt-Ins
Reach
Frequency
DoubleClick
Vindico
Google AdWords
Yahoo! Search
ePrize
DataCore PR
agencies
Dozens of Data Sources
Coupons Inc.
MSN Ad Center
YouTube
Listening
Individual Publishers
Google Analytics
Database
Responsys
WebTrends
Open rate
Conversion RateActive Users Codes Entered
Multitude of metrics
MONIQUE DUQUETTE
Sr. Applications Consultant
Aprimo
Copyright © 2011 by Teradata Corporation
Managing Your Marketing Dollars: Cost-Effective ways to Measure Your Spend and ROI
Monique Duquette, Aprimo
Copyright © 2011 by Teradata Corporation
There is a Revolution in Marketing
Copyright © 2011 by Teradata Corporation
ROI, Channel Integration Plagues CMOs
10% 10%
27%
15%
37%
Too many silos
Correlatingmarketing to revenue
Channelconsistency
in messaging
Lack ofmarketingchannel
integration
Perceivedlack of value
from marketing
What is Most Broken in Marketing Today?
CMO Survey/Argyle Executive Forum
Copyright © 2011 by Teradata Corporation
Current State – Manual. Disconnected. Inefficient.
Budgeting & Tracking Campaign Proposals
Workflow & Project Mgmt
Copyright © 2011 by Teradata Corporation
Multiple Solutions Inhibit Marketing Effectiveness
Aberdeen Group Best in Class Website Results: 3 Leading TechnologiesThat Work Better as 1
• Low value realization
• Data translation issues
• Lack of usability and integration
• Difficult to manage multiple licenses, interfaces, data
• Lack of automated prospect engagement across channels
Integrated marketing automation platform
Multiple separate marketing applications
Copyright © 2011 by Teradata Corporation
Future State – Evaluate. Collaborate. Act
SocialMedia
Category/Brand
Interest
ProductInformation
Incentives
More Efficient & Effective Marketing
• Creates relationships
• Drives loyalty & satisfaction
• Saves on agency costs
• Focus on creative, messaging, offers
• Increases average purchase price
• Store/product/brand recommendations
Better Customer Experience
• Channel preference/convenience
• Ability to easily find Product/brand information
• Relevant & timely promotional incentives
• Highly personalized communications delivered more frequently
Copyright © 2011 by Teradata Corporation
Understanding ROI
Copyright © 2011 by Teradata Corporation
ROI - How do I get there?
+
Ingredients
• Marketing Spend• Sales/Revenue Data• Response/External
Information
Tools/Appliances
• Strategic Alignment• Operational
Efficiency• Cross-brand
Coordination
Copyright © 2011 by Teradata Corporation
Aprimo Integrated Marketing Management
Copyright © 2011 by Teradata Corporation
Opportunities —Channels, Collaboration, Performance
Proliferation of New Engagement Channels
Improve Agency and Internal Collaboration
Improving Marketing Performance & Accountability
Reduce inefficiencies working with agencies
Improve processes and interactions with internal teams
Manage the campaign execution processes
Increase marketing directly with consumers
Expectations for relevancy from consumers
Empower field marketers to engage with relevant data
Gain visibility to marketing campaigns being executed
Adjust marketing spend based on performance
Streamline marketing spend
CH
AN
NELS
CO
LLABO
RATIO
NPERFO
RM
AN
CE
1
2
3
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