September 12, 2011

Geoffrey Ramsey

TWITTER: @geofframsey

#digitalimpact#imediasummit

Can you identify with these two fundamental problems?:

• Lack of adequate metrics and measurement systems to drive marketing performance

• Frustration with how to effectively engage online consumers, who have short attention spans, face abundant choices and are increasingly resistant to advertising messages

Secret #1 is all about the need for Performance Measurement…

Marketers view of performance measurement“The challenge is – ‘Prove to me that marketing works’… that the investments are paying back in both short- and long-term deliverables.”

--Bob Liodice, CEO, ANA

The online display ad landscape today...

Integration of many data sources

Exchanges

Mid/Tail Publishers

Networks

+ real time placement

+ Complex analytics for testing and

optimization

Demographic

Psychographic

Geographic

Behavioral

Client

Premium Publishers

“What’s at stake here?”

$1 TrillionTotal Marketing(VSS, Myers, PwC, etc)

$368 Billion“Advertising & Marketing”

(Outsell)

$157 BillionAdvertising(eMarketer)

$31 BDigital

(eMarketer)

Internet as “Hub”

Consumer time and engagement Huge purchase influence Now 20% of total media spend

and surpassing all print in 2012 Media measurement “hook” Power of One media to rule them all!

20.2%

Deutsche Bank……. 18.0%Barclays................... 16.5%MAGNAGLOBAL….. 15.6%PwC…………………. 15.5%Morgan Stanley……. 14.8%Citi…………….......... 14.6%Winterberry Group…. 14.0%IDC…………………… 13.8%WARC…..….. ………. 12.7%ZenithOptimedia……. 12.6%GroupM……………… 12.0%

“Where’s all this digital money coming from?”

+1.4%65%

eMARKETER FLASH Poll:

“What % of YOUR digital ad spend comes from traditional?”

Secret #2 gets at the problem of

engagement with digital consumers

4.4%

43%of consumers say they ignoreor disregard banner ads more

than any other type of ad.

Source: AdweekMedia/Harris Poll,October, 2010

Chaos Theory

BreakoutSessions

Today’s Panels:• Digital re-aggregration of media dust

• Digital is making the media universe fly apart at an accelerated rate

Rishad

Peter

John

Bob

The classic interruption/disruption model of advertising is waning…

We interrupt

this program

to sell you stuff

We interrupt this

programming to sell

you stuff!

“Advertising is no longer about blasting the most messages to the most people. Instead, it’s about

this: Ideas that spread, win.”

--Seth Godin

“We need to create experiences, not just

sponsor content.”

--Frank Cooper, CMO, Pepsi

“Marketers are focusing on creating Magnetic Content – so entertaining,

relevant, informative or useful – it demands the consumer’s

time and attention.”

“It’s more about ATTRACTION, rather than DISTRACTION.”

The Magnetic Content approach turns targeting on its head.

20% offMens’ Jeans

2-for-1Sale!

What about B2B?

Does content as marketing work in the B2B world?

Case Study Highlight:

“Name the best example of Magnetic Content that you’ve personally experienced with a

brand.”

Five Criteria for Magnetic Content

1. Is the content Unique?

2. Is it Useful?

3. Is it Well Executed?

4. Is it Fun?

5. Does it make good use of the channel in which it appears?

Ask yourself, “Would I personally want to receive this content, and share it with others?”

Is it Unique?Well Executed?Fun?

Is it Useful?Is it working?!

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Time on Page Page CTR Circular Paths Exit RateTime on Page Page CTR Circular Paths Exit Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Time on Page Page CTR Circular Paths Exit Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comments Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Time on Page Page CTR Circular Paths Exit Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Time on Page Page CTR Circular Paths Exit Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Time on Page Page CTR Circular Paths Exit Rate

Click-Thru Rate

Cost Per Lead

Cost per Click

View-Thrus Reach

Interaction Rate Leads

Frequency

Impressions

Share of Voice

Downloads Conversion Rate Comment Forward Return Visits

Bounce Rate Time on Site Page Views Video Views Registration Rate

Only 7 Key Metrics to MasterOnly 7 Key Metrics to Master

Time on Page Page CTR Circular Paths Exit Rate

Too many metrics… the big challenge is deciding the right metrics

Start with the measurement framework

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

Strategic Metrics

Exposure Metrics

LINKAGE

LINKAGE

LINKAGE

20

Low level measures related to the performance of individual channels

Higher level metrics related to longer-term changes in brand

health

Highest level metrics used to quantify business performance

e.g., Qualified Reach

e.g., Brand Perception Lift,Engagement Score

e.g., ROI

Engagement Score?

Linkages are crucial,not just a report card

Engagement Score reflects a hierarchy which is based on the brand’s objectives

21

Create

Share

Request

Respond

Interact

View

Recommend , referrals

Profiles, Upload pictures

Send to friend, Social media

Signup, Email, Coupon, WTB

Rate, Vote, Add comments

Play videos, Demos

Content, Pictures

HIGHER VALUE

LOWER VALUE

EngagementValue Continuum

Advocate

Assign point values to each gradated level of Engagement

1 Point

1 Point1 Point 1 Point 1 Point

2 Points1 Point

2 Points

3 Points

3 Points

2 Points

3 Points 1 Point2 Points

2 Points 1 Point1 Point

2 Points

Illustrative example for mappingEngagement Scores

Applying Magnetic Content and Performance Measurement to the Six Digital Channels

Social

Display

Digital Channel

#1:

SocialMedia

Social Media: Connections that Count

“Can we achieve scale?”

89% are onemail

232 million Americans are online today (74%)

Source: eMarketer, 2011TWITTER:@geofframsey

76% are buying online

68% are watching online video

64% are social networking

11%Twittering

US social media spending will grow 55% this year to $3 billion

11%of total US online ad spend

7% of total online ad dollars

18% of display ad dollars

Overtaking Yahoo! this year at only 13% share

Four best practices for Magnetizing customers through social media content

1. Leverage the secret ingredient: Trust

2. Listening leads to learning

3. Add Value to the conversation (ala Magnetic Content!)

4. Focus on your Core Enthusiasts

e.g., letting your brand advocates speak on your behalf; allowing for customer ratings and reviews

A. Learn how consumers talk about your brand, product or service category• Notice what words and language they use• Learn about their interests and intentions

B. Discover real or perceived problems with your product or customer service

#2. Listening leads to Learning

C.L.O.

A personal story about listening…

New strategy…

ESCALATE

Censored

Adobe, I hope you’re listening, because I’ve got a problem…

#3. Add value to the conversation…

UniqueUsefulWell executedFunGreat use of channel

Sometimes, the best Magnetic Content comes from your best

customers.

Which is why you should:#4. Focus on Your Fans.

#4. Focus on Your Brand Fans:

Prospects

Customers

COREFANS

Find them via Social Media

CORE

Nurture them carefully

Empower them to share

Consumers Who “Like” or Follow a Brand:

• Are more likely to buy 1, 3, 4…………………. 51%

• Tend to spend more money 2……………….. $71

• Are more likely to recommend 1, 3, 4……..…. 60%

• Are more likely to be loyal to the brand 3 …. 34%Sources: 1) Chadwick Martin Bailey, Mar, 2010; 2) Syncapse, 2010;3) ROI Research, June, 2011; 4) DDB Worldwide and OpionWayResearch, Oct, 2010

SHARPIE: Finding Fans. Empowering Them. Nurturing Them.

Viewed 62 million times on YouTube

% of marketers saying their ability to measure ROI for media channel is “good”

Social media 19%Social media 19%

Paid search 54%Paid search 54%

N = 567 global marketers, 2010

E-mail marketing (acq) 53%E-mail marketing (acq) 53%

Online display 37%Online display 37%

TV 21%TV 21%

Newsp/Mags 20%Newsp/Mags 20%

Applying our framework to social media

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

Strategic Metrics

Exposure Metrics

LINKAGE

LINKAGE

LINKAGE

37

This is not the end game!

Conduct post-visit surveys with an exposed vs. control

group to determine lift in brand perceptions

To get to “ROI,” you need visibility into actual buying activity:

• Self-stated purchases;• Matching to a transaction database;• Capturing online purchases.

Digital Channel

#2 Display:

The Branding that Creates the Intent

• Influx of SMB

display buyers due

to self-serve

buying platforms

• RTB and

exchanges creating

improvements in

display targeting,

buying efficiencies

and metrics

• Facebook creating

new display ad

opportunities

• Hockey stick

growth in video

24.5%

MAGNAGLOBAL... 24%Barclays Capital.... 21%Morgan Stanley..... 18%Piper Jaffray…….. 18%Citi……………....... 17%ZenithOptimedia.... 15%DigitalRoute………. 14%Deutsche Bank…… 13%J.P. Morgan.………. 13%Caris & Co.………... 13%Credit Suisse…….. 8%

% Planning to Increase Display Ad Spending in 2011

• Advertisers*………… 49%• Agencies*……………. 32%• B2B Marketers**……. 13%

*Econsultancy & SAS, 2011;**Forrester Research, 2011

Video Ad Spending as a %of Total Display AdvertisingVideo Ad Spending as a %

of Total Display Advertising

17.5%17.5% 32.3%32.3%

…There’s now plenty of data showing how online display ads drive consumer activity

Do a Search

Visit Website

Buy Online

Buy Offline

O

ver time

“You don’t build brands by optimizing for clicks!”

--John Battelle

• ART – Focusing on better creative (Magnetic Content)– Better ideas, execution – including video– Providing multiple engagement options within the banner

• SCIENCE – Using data & analytics to better target, deploy and measure ads (Performance Measurement)– Real-time bidding– Audience targeting– Integration with other media

Marketers are getting better at both the Art and Science of display advertising:

“Creative is about 70% to 80% of the effectiveness of advertising.”

--Jon Gibs, VP media analytics, Nielsen

Creative execution counts

With online video...

• Tell a story• Create a laugh

• Visualize a product benefit

Is it FUN?Home sales of blenders up 700% since the video

series began!

Believe in the Magic of Magnetic Content and Performance Measurement“I do hope Geoff

realizes his time is up”

“Thank you”eMail geoff@emarketer.com

Twitter @geofframsey

eMail geoff@emarketer.com

Twitter @geofframsey

(www.Amazon.com)