eMarketer Webinar: Secrets to Online Marketing Success

Presented by:

Geoffrey Ramsey

CEO & Co-Founder, eMarketer

@geofframsey

J U N E 3 0, 2 0 1 1

Secrets to Online Marketing Success

Sponsored by:

#eMwebinar

Believe in the Magic of Engaging and Measuring

Can you identify with these two 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

Twitter: #eMwebinar @geofframsey

$1 TrillionTotal US Marketing

(VSS, Myers, PwC, etc.)

$1 TrillionTotal US Marketing

(VSS, Myers, PwC, etc.)

$368 BillionAdvertising & Marketing

(Outsell)

$157 BillionTraditional & Digital

Advertising(eMarketer)

$31 BDigital

(eMarketer)

Internet as “Hub”Consumer time & engagementHuge purchase influenceMedia measurement “hook”= 20% of total media in 2011

MAGNAGLOBAL….. 15.6%Deutsche Bank……. 15.3%Barclays................... 15.2%Morgan Stanley……. 14.8%Citi…………….......... 14.6%Winterberry Group…. 14.0%WARC…..….. ………. 13.7%Caris & Co.…………. 13.3%GroupM……………... 13.0%ZenithOptimedia……. 12.6%

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 ad messages

Secret #1 is all about the need for Performance

Measurement…

Marketer’s 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 most commonly used metrics (CTR/time spent) cannot be used by themselves

The industry has not come up with a common definition of engagement that is aligned with business results and ROI.

Performance measurement online: know the right metrics framework

Secret #2 gets at the problem of

engagement with digital consumers

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

The classic interruption/disruption model of advertising is waning…

Buy Now!

“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 that it demands the consumer’s

time and attention.”

The Magnetic Content approach turns targeting on its head.

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?

“What can I do for you, the consumer, that is unique and valuable—i.e., truly worth your time and attention?”

Is it Unique?

Is it Useful?

Is it Fun?Home sales of blenders

up 700% since the video series began!

Is it Well Executed?

Creative execution counts

Use “paid media” (e.g., display ads) to drive consumers to your Magnetic Content

Click-Thru RateClick-Thru Rate

Cost Per LeadCost Per Lead

Cost per ClickCost per Click

View-ThrusView-Thrus ReachReach

Interaction Rate

Interaction Rate LeadsLeads

FrequencyFrequency

ImpressionsImpressions

Share of VoiceShare of Voice

DownloadsDownloads Conversion Rate

Conversion Rate CommentComment ForwardForward Return VisitsReturn Visits

Bounce RateBounce Rate Time on SiteTime on Site Page ViewsPage Views Video ViewsVideo Views Registration Rate

Registration Rate

Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit RateTime on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate

Interaction Rate

FrequencyFrequency

Registration Rate

How do we optimize traffic?How do we optimize traffic?

Interaction Rate

FrequencyFrequency

Registration Rate

Does the media drive high quality traffic?Does the media drive high quality traffic?

Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate

How do we improve our creative?How do we improve our creative?

Interaction Rate

FrequencyFrequency

Conversion Rate CommentsComments ForwardForward Return VisitsReturn Visits

Registration Rate

Interaction Rate

FrequencyFrequency

Registration Rate

Do we have the right site content?Do we have the right site content?

Interaction Rate

FrequencyFrequency

Registration Rate

Is site navigation working as intended?Is site navigation working as intended?

Interaction Rate

FrequencyFrequency

Registration Rate

Evaluating online adsEvaluating online ads

Too many metrics… big challenge is deciding the right metric

Start with right measurement framework

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

LINKAGE

Financial/business metrics used to quantify business performance

Low level measures related to the performance of individual channels

Higher level metrics that capture engagement, as well as brand health and changes in customer preference and perceptions

1. Qualified Reach, Visits

2. CTR

3. Brand perception Lift

4. Engagement Score

5. End Action Rate (e.g., acquisition, redemption, trial, purchase, etc.)

6. Efficiency Metrics (Cost/X)

7. ROI

The 7 most important metrics to master

I. Exposure Metrics

II. Strategic Metrics

III. Financial Metrics

Engagement Score aligned to the objectives of the content

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

ILLUSTRATIVE ENGAGEMENT

Engagement Index Methodology

1 Point1 Point

1 Point1 Point1 Point1 Point 1 Point1 Point 1 Point1 Point

2 Points2 Points1 Point1 Point

2 Points2 Points

3 Points3 Points

2 Points2 Points

3 Points3 Points 1 Point1 Point2 Points2 Points

2 Points2 Points 1 Point1 Point1 Point1 Point

2 Points2 Points

Applying Engagement Score to a Microsite

Engagement Score

Advocate Recommendation, referral

Applying Magnetic Content and Performance Measurement to the Six Digital Channels

Sample Sample Digital Digital

Channel:Channel:SocialSocialMediaMedia

Sample Sample Digital Digital

Channel:Channel:SocialSocialMediaMedia

Social Media: Connections that Count

Affluent (Dwell Strategy + Research, March, 2010) 78%Affluent (Dwell Strategy + Research, March, 2010) 78%

Millennials 18 - 34 82%

Teens 12 - 17 78%

Social media spending will continue to explode in 2011

10% of total US online ad spend

Social media spending will continue to skyrocket in 2011

10%of total US online ad spend

33% of display impressions*

17% of display ad dollars**

*comScore, 2011**eMarketer, 2011

It’s less about buying social media, and more about how you can earn

and own it!

It’s less about buying social media, and more about how you can earn

and own it!

It’s all a matter of

TRUSTIt’s all a matter of

Consumers trust each other more than they do marketers

Four best practices for Magnetizing customers through social media:

• Leverage the secret ingredient: Trust

• Listening leads to learning

• Add Value to the conversation (à la Magnetic Content!)

• Focus on your Core Enthusiasts

How can you leverage trust through social media?

• Let your fans come to your rescue

• Allow for customer ratings & reviews

Transparency Trust=

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

Listening Leads to Learning

“By listening carefully, we harness social media as an early alert system...so we can react quicker to issues.” --Richard Brinhammer, Dell

“Warning!

Warning!”

Add value to the conversation…

Censored

UniqueUsefulWell executedFunGreat use of channel

Focus on Your Brand Enthusiasts:

Prospects

Customers

Find them via Social

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 OpionWay

Research, Oct, 2010

% of marketers who say 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%

If hard ROI metrics are difficult to track directly, consider a range of softer metrics that can be linked back to desired outcomes.

“Hard” ROI

• Sales• Leads• Cost-per-sale• Profits

# of Likes

# of TwitterFollowers

BrandSentiment

Video Sharing

# ofBrand

Searches

“Soft” Metrics(i.e., Measures of Engagement)

Applying our framework to social media

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

LINKAGE

Identify the specific metrics that will be measured within each bucket

I. Exposure

Social Networks (Facebook/Myspace): •Number of fans/friends •Number of comments

Twitter: •Number of followers •Number of tweets•Number of re-tweets

Videos/Photos (YouTube, Flickr): •Number of views •Number of comments •Number of pass-alongs

Brand Perception Lift (measured pre- and post, test vs. control):•Brand awareness•Brand attribute lift•Brand Favorability•Purchase intent

Engagement Score:•Based on actual behavior, it represents the degree of magnetism for your social content•Assign points (e.g., a status update or tweet will have a lower value than adding a new fan or follower)

II. Strategic

Efficiency Metrics of Cost per X: Cost per fan/friend/follower/memberCost per comment/tweetCost per brand perception liftCost per increase in purchase intent

# of Qualified Leads

Sales/Purchases

III. Financial*

*Transcend individual social channels

Using consumer panels, design a ‘test & control’ (A/B) approach to compare outcomes for each metric

• Identify and segment individuals in your target audience into two groups: those Exposed to social content and a Control group (not exposed)

• Compare outcomes (e.g., purchase history, intent to purchase, sign-ups for a demo) between the two groups by measuring the ‘lift’

• Calculate ROI for the initiative…

Once you have the right set of metrics, can you get to ROI?

Access to a purchase is required

Visibility into Purchase through:

a) Self-reporting (surveys)b) Matching to transaction database

c) Capturing online purchases

Calculating ROI for social media:

VALUE for Exposed Group

VALUE for Control(not exposed) Group

Fully LoadedCosts

X 100%

ROI approach illustrated with an example

ConsumersConsumers

Incremental Sales LiftIncremental Sales Lift

Incremental RevenueIncremental Revenue

CostCost

ROIROI

ValueValue

$1,480,449 $1,480,449

6 to 16 to 1

77,753 77,753

$10,457,414 $10,457,414

500,000500,000

ProfitProfit $8,019,414 $8,019,414

Primary goalPrimary goal Acquire new prescriptionsAcquire new prescriptions

Incremental sales from testsales data obtained from panel

Incremental sales from testsales data obtained from panel ApproachApproach

Used panels for, incremental prescriptions

Prescriptions X price

Price X margin

Loaded costs

Profit/costs

Unique visitors Viewing content

Key Takeaways:

• Magnetic Content is a complement to your traditional “paid media” efforts – it’s about attraction, not distraction

• Performance Measurement is about selecting the right metrics from across the three categories of the metrics pyramid (Exposure, Strategic, Financial)

• Follow the steps, guidelines and frameworks in the book to drive Digital Impact

LivePersonCreating Customer Connection

June 30, 2011

________________________________________________________________________________________________________________________

LivePerson – Enables Meaningful, Real Time Customer Connections

________________________________________________________________________________________________________________________

Secret #2 gets at the problem of engagement with digital

consumers

Deliver Timely, Relevant Content to Your Customers

________________________________________________________________________________________________________________________

Deliver Timely, Relevant Content to Your Customers

________________________________________________________________________________________________________________________

Create Your Own Virtual Social Media Monitoring Room…With Real Time Response

________________________________________________________________________________________________________________________

Using predefined business rules, you can respond with a Tweet of your own, inviting the customer to chat with a representative to resolve their issue in real-time:

A customer shares feedback on Twitter:

Create Your Own Virtual Social Media Monitoring Room…With Real Time Response

________________________________________________________________________________________________________________________

LivePerson can help you engage with your digital customers!

Connect with us…

www.liveperson.com

www.facebook.com/LivePersonInc

@liveperson

User: LivePersonCommunity

Secrets to Online Marketing Success

Questions & AnswersRegistrants will receive an email tomorrow that includes a link to view the deck and webinar recording.

For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions.

To learn about eMarketer Total Access please visit www.emarketer.com/productsor contact us: (800) 405-0844 or ben@emarketer.com

Digital Impact: The Two Secrets to Online Marketing Success – Now Available

Twitter Hashtag: #eMwebinar

Sponsored by:Presented by:Geoffrey RamseyCEO & Co-Founder, eMarketer, Inc.

eMarketer Webinar: Secrets to Online Marketing Success

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