Post on 17-Oct-2014
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Digital Marketing Strategies for Financial Services February 2013
Digital Marketing Allocation
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Digital Marketing Growth
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Digital Marketing Emphasis
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Secrets To Digital Marketing Success
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• Email and Direct Mail Aren’t Dead
• Make Message Simple
• Everything is Integrated
• Content is Currency
5 Digital Marketing Mistakes Banks Make
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• Erecting channel silos
• Underfunding the banks website
• Lack of KPIs and measurement
• Not sharing data within organization
• Not leveraging new digital tools
3 Key Digital Marketing Strategies
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• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
3 Key Digital Marketing Strategies
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• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
#1: Attribution Modeling
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> Enables marketers to look at the history of ads/touches that contribute to a conversion over an extended period of time
> Credit is given to each ad or “touch point” within the sales funnel rather than crediting the last ad clicked or viewed
Our Target Converter Is Not Clicking • Our target audience is not clicking on banners, yet they are converting • The demographic that is clicking is very different from the demographic
which is converting
Clickers primarily <18 and >50, with <$30K HHI
Yet Converters are primarily 18-49, HHI $60K+
Source: Quantcast (based on combination of Tech, Insurance, & Apparel categories)
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Evaluating Display Beyond the Last Ad Served
• Online media has traditionally been measured based on a “last ad” model, where 100% of the credit is attributed to the last ad clicked or viewed
• However studies have shown that the “last ad” model may ignore up to 94% of media touchpoints in converter histories.*
• Attribution modeling considers the relative contribution of those prior touches
• End Result…ability to drive scale by validating impact of higher funnel media
*Song, Young-Bean. Senior Director Atlas Institute. “Engagement Mapping: A new measurement standard is emerging for advertisers.’
Conversion SEM Display RT Internal Display
BT Display/ Rich Media
Last Ad
Prior Touches
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Common Cross Channel Dynamics
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Lifts response of:
Drives volume to:
Drives volume
to:
Helps optimize
content for:
Drives volume
to:
Drives volume to:
Lifts response of:
Lifts response of:
Social & Mobile
Affiliate
Display
Landing Page
Retargeting
SEO/SEM
Direct Mail
> In reality, each channel in the mix affects all others
> This depicts the most significant dynamics
Common Cross Channel Dynamics
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> The correlation between search and display has been statistically demonstrated often
> The challenge to is identify the optimal allocation between the channels to achieve the lowest average cost-per-action
Actual campaign data from a financial services client showing search volume decreasing as display impressions decrease
Cross Channel Example Dynamic Display Impacts Search
Cross Channel Example Dynamic Display Impacts DM
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MaxPoint Impression Delivery
MaxPoint Impression Delivery
Online Account Applications
Online Account Applications
Most Impressions Medium Impressions Fewest Impressions Digital Zips with 1+ Online Applications During Campaign
New Control has recently been successful combining display and DM to increase response and lower overall CTA
> 50% lift in response rate over DM alone – Neighborhoods that received display ads in addition
to DM against neighborhoods that only received DM
> Overall, the display campaign had an estimated 2.83x ROI and incremental return on DM investment of 1.83x
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SEM Data helps optimize…
…DM creative
> Message test using insights from SEM data lifted response rate 23% over control
Cross Channel Example Dynamic SEM Informs Direct Mail
Common Attribution Models
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First & Last
First Touch Last Touch
Algorithmic Decay
The challenge is that these are theoretical attributions that don’t account for
channel or creative differences
We recommend a reactive algorithmic approach that measures the relative impact of each ad exposure in market in order to assign a weighted credit to that particular exposure
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How Attribution Works
• Using a combination of in-market measurement and modeling, we can effectively and accurately attribute fractional credit for each conversion
OLM Display Impression #1
OLM Display Impression #2
SR Display Impression #1
Search Impression #1
CR x CTA x + + + =
OLM Display Impression #1
SR Display Impression #1
Search Impression #1
CR y CTA y + + =
OLM Display Impression #1
OLM Display Impression #2
Search Impression #1
CR z CTA z + + =
User Group A
User Group B
User Group C
By analyzing the differences between all of the in-market touchpoint paths that result in a conversion, we can deduce the relative impact of each individual impression and creative unit on conversion rate and CTA, and thereby assign the appropriate credit.
*Simple example for illustrative purposes only; ultimately there will be as many user groups as there are unique touchpoint paths
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Mix 1 Scale: A
Cost-‐Per-‐Conversion: Y
Optimizing the DR Mix
> A portfolio management approach defrays risk and achieves maximum results
> Scale and Cost-Per-Conversion are balanced
> Optimizing the mix is achieved through testing, sufficient data, and analytics
Mix 2 Scale: B
Cost-‐Per-‐Conversion: Z
Attribution Modeling Technology Visual IQ Example
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Analyzes sales by channel
over time
Then uses attribution modeling (not last action), to develop a recommended allocation of spend across channels that maximizes ROI
3 Key Digital Marketing Strategies
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• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
#2: Retargeting 2.0 – CRM Retargeting
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CRM Database
Online targeting of customers in an offline CRM database
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#2: CRM Retargeting – How It Works
Cardholders in the mail file are served display ads – potentially including
downloadable coupons
IP addresses/cookies corresponding to
matched cardholders are identified
Mail file is passed to CRM Targeting
platform provider
Physical address 123.123.123.123
Physical address 12.4.560.275
Physical address 356.5.10.153
Physical address 192.168.1.132
CRM Database
#2: CRM Retargeting Benefits
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> True 1-1 targeting of of customers
> Offers can be identical to ones cardholder would receive through DM channel
> Can be used as a stand-alone alternative delivery method to lower program costs, or as a DM reinforcement to increase redemption and spend levels
> Integrates with leading digital media platforms for complete flexibility of media plan
> Spongecell ad units provide robust functionality without rich media ad serving costs
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• Search Retargeting enables us to retarget users with display advertising based on the content of their internet searches
• This strategy enables us to capitalize on the targeting accuracy of search engine marketing (SEM) without the character limit restrictions of traditional search ad units
A prospect searches for “Playstation Credit Card” on Google Later, they are served an ad for the Playstation Card
USER A" USER A"
#2: Retargeting 2.0 – Search Retargeting
3 Key Digital Marketing Strategies
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• Multi-Channel Attribution and Attribution Modeling
• Retargeting 2.0
• Responsive Design for Mobile Optimization
#3: Responsive Design
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> Single source of HTML code that is built to adapt or respond to the display environment, screen size, etc.
Website viewed on a desktop
Website viewed on a mobile device
More than 1 in 2 Americans already have a smartphone …
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… iPhone Growing 5X Faster Than the Internet Did
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… iPad Growing 3X Faster Than iPhone did
30 Sources: KPCB and Apple, as of CQ1:12 (8 quarters post iPad launch).
… Android Growing 5x Faster Than iPhone did
31 Sources: KPCB, Gartner, Morgan Stanley Research, as of Q4:11
#3: Responsive Design
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> 57% of people open email on mobile devices
> Only 3% will view the same email again later
> To make sure customers see the email or landing page that’s suited to their device, responsive design adjusts depending on the width of the screen - Landing pages - Websites
When should Responsive Design be used? > Any page linked to from email has a good chance
of coming from mobile
> Any URL mentioned in out-of-home ad may also come from mobile
Benefits include: > Emails and landing pages work best for user
regardless of where they read it
Source: ClickZ and Litmus
Digital Marketing Strategy Bonus
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• Personalized Video
Video Consumption is Growing
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Video Ad Buys Are Growing
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APRIL MAY AUGUST OCTOBER
SMARTVIDEO: EFFECTIVE ENGAGMENT THROUGH THE CUSTOMER LIFECYCLE