eMarketer breakfast - Digital Impact: Two Secrets to Online Marketing Success
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Transcript of eMarketer breakfast - Digital Impact: Two Secrets to Online Marketing Success
June 23, 2011
New York City
eMARKETER Breakfast
Geoffrey Ramsey Vipin Mayar
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
edge of cliff here
• Accountability mandate drivingneed for more efficient media
• Fragmentation = niche audiences
• Shift to “owned” and “earned” media
$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
65%
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 most commonly used metrics – CTR/time spent cannot be used by themsleves
The industry has not come up with a common definition of engagement that is aligned with brand business results and ROI.
Performance measurement online: know the right metrics framework
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.”
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?
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?”
“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!
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
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
How do we optimize traffic?How do we optimize traffic?
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
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?
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 CommentsComments 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 Rate
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
Do we have the right site content?Do we have the right site content?
Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate
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
Is site navigation working as intended?Is site navigation working as intended?
Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate
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
Evaluating display adsEvaluating display ads
Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate
Too many metrics… big challenge is deciding the right metric
Start with the measurement framework
Perceptual & Behavioral Outcomes
FinancialOutcomes
MarketingInvestment
LINKAGE
LINKAGE
LINKAGE
25
ExposureMetrics
StrategicMetrics
FinancialMetrics
Financial/business metrics used to quantify business performance
Low level measures related to performance of individual channels
Customer/brand activity metrics at the program, segment, and product level
ROI
Key campaign metrics - example
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1. Qualified Reach
2. CTR
3. Brand perception Lift
4. Engagement Score
5. End Action Rate
6. Efficiency Metrics (Cost/X)
7. ROI
We recommend 7 metrics to master
Engagement Score: new framework/metric
ViewView
InteractInteract
RespondRespond
ShareShare
CreateCreate
AdvocateAdvocate
• Ad exposure• Web Site Exposure• Ad exposure• Web Site Exposure
• Videos• Demos• Webcasts
• Videos• Demos• Webcasts
• Info Request• Post comment• Coupons
• Info Request• Post comment• Coupons
• Send to a friend• Review comment• Send to a friend• Review comment
• Post on blog• Upload images, videos• Post on blog• Upload images, videos
• Word of Mouth• Recommendation• Word of Mouth• Recommendation
ACTIVITIESACTIVITIES METRICS TAXONOMY
METRICS TAXONOMY
• Impressions• Clicks• Page Views
• Impressions• Clicks• Page Views
• Initiations• Completions• Time
• Initiations• Completions• Time
• Open Rate• Response Rate• Redemption Rate
• Open Rate• Response Rate• Redemption Rate
• Viral Transfer Rate• Response Rate• Viral Transfer Rate• Response Rate
• Online buzz• Sentiment• Online buzz• Sentiment
• Discussion Volume• Reco. Rate• Discussion Volume• Reco. Rate
Transact Purchase
Engagement Score aligned to the objectives of the content
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Widgets, Download apps
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
Extend
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
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
Illustrative points for engagement
Enga
gem
ent P
oint
s
Visitors
Qualified Engagement and Visit Threshold
Qualified Visitors
Allows you to determine engagement thresholds
Gain in Engagement Below Threshold Do Not Drive BehaviorUse Engagement Score
and Qualified Visits in your
digital measurement
Applying Magnetic Content and Performance Measurement to the Six Digital Channels
Social
Display
Digital Digital ChannelChannel
#1#1
Digital Digital ChannelChannel
#1#1 Social Media: Connections that Count
What % of Internet users go to social sites?What % of Internet users go to social sites?
% of US Internet users who participate in social networks (2010)
Source: eMarketer, 2011; *with some level of frequency
20% NOT using social?!?
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
TRUST
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 (ala Magnetic Content!)
• Focus on your Core Enthusiasts
68% of Facebook users are more likely to buy a
product or visit a retailer based on a positive FB friend
referral
--Morpace, 2010
68% of Facebook users are more likely to buy a
product or visit a retailer based on a positive FB friend
referral
--Morpace, 2010
How can you leverage trust through social media?
• Let your fans come to your rescue
• Allow for customer ratings & reviews
Transparency Trust=
“terrible service!” “negligent!”
“#%@!!!”
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
New strategy…
ESCALATE
Adobe, I hope you’re listening, because I’ve got a problem…
Add value to the conversation…
Censored
UniqueUsefulWell executedFunGreat use of channel
Focus on Your Brand Enthusiasts:
Prospects
Customers
CORE
Find them via Social
Media
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
% 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%
Less than 1/4 of US marketers are measuring the direct ROI of their social media efforts
• MENG................................. 12%• White Horse……................. 13%• Econsultancy........................ 19%• Alterian…………………….... 21%• Harvard Business Review… 24%
Marketers also believe Social Media is a key driver of brand awareness and affinity, but not so much sales
Applying our framework to social media
Perceptual & Behavioral Outcomes
FinancialOutcomes
MarketingInvestment
LINKAGE
LINKAGE
LINKAGE
50
A “like” is not the end game
KPI metricsUnique VisitorsClicksEngagement: QVTM
Reported intended behavior
•Purchase
Firm placing Content on site
Illustration
Vote
Comment Posting
Linking
Political Blog
ROI
Perception Shift
Once you have the right set of metrics, can you get to ROI?
Access to a purchase is required
Visibility into Purchase through eitherSelf stated
Matching to transaction databaseCapturing online purchase
The typical method of getting to ROI
Build Control Group
Build Control Group
Calculate ROICalculate ROI
Determine LiftDetermine Lift
Survey VisitorsSurvey Visitors
• Identify similar consumers who have not visited site using panel
• Administer the same survey to panelists
• Identify similar consumers who have not visited site using panel
• Administer the same survey to panelists
• Capture all costs of digital marketing beyond media • Capture all costs of digital marketing beyond media
• Re-contact both test and control X days later to capture lift based on self-reported transactions or get actual transactions
• Re-contact both test and control X days later to capture lift based on self-reported transactions or get actual transactions
• Track on-site behavior• Conduct post-visit survey to capture perceptions and
demographics
• Track on-site behavior• Conduct post-visit survey to capture perceptions and
demographics1
2
3
4
ROI approach illustrated with an example
ConsumersConsumers
Incremental Sales LiftIncremental Sales Lift
Incremental RevenueIncremental Revenue
CostCost
ROIROI
ValueValue
$1,480,449 $1,480,449
5.4 to 15.4 to 1
77,753 77,753
$9,457,414 $9,457,414
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
from site visitors
Prescriptions X price
Price X margin
Loaded costs
Profit/costs
Unique visitors from site tool
Digital Digital Channel Channel
#2#2
Digital Digital Channel Channel
#2#2 Display:
The Branding that Creates the Intent
• Influx of SMB display buyers due
to self-servebuying platforms
• Improvements indisplay targeting,
buying efficiencies and measurement
and metrics
• Social networkscreating new
display adopportunities
• Hockey stick growth in video
Awareness
InterestAttitudes
Perceptions
Pre-purchaseinfo gathering
Transaction
Display ads create the demand, while search ads capture that demand…88% of Internet
users shop and research online prior to buying
--eMarketer, 2011
Not justsearch engines
Opportunity to influence prospects even before they do any research!
Online display ads can drive consumer activity – but you need to measure it!
Do a SearchDo a Search
Visit WebsiteVisit Website
PurchasePurchase
Over ti
me
Online display ads drive 44% of ultimate online transactions,
whereas paid search drives only 27%
--C3 Metrics Labs, Jun, 2011
Six Best Practices for Magnetizing Customers through Display Ads
1. Creative counts
2. Super-size your ads
3. Pay attention to context
4. Use the latest targeting tools
5. Integrate display with search, social, mobile
6. Use display ads to drive consumers to your Magnetic Content
Creative execution counts
Use display ads (“paid media”) to drive consumers to your Magnetic Content
Display landscape becoming increasing complex
Integration of many data sources + real time placement
+ Complex analytics for
testing & optimization
Demographic
Psychographic
Geographic
Behavioral
Client
Premium Publishers
The ostrich effect
ExposureMetrics
StrategicMetrics
FinancialMetrics
Financial/business metrics used to quantify business performance
Low level measures related to performance of individual channels
Customer/brand activity metrics at the program, segment, and product level
ROI Sales Volume
Key campaign metrics - example
63
Five steps to total performance measurement for display ads
Map DriversMap Drivers
OptimizeOptimize
EstablishObjectivesEstablishObjectives
• Create a campaign hierarchy that captures all drivers of performance
• Create a campaign hierarchy that captures all drivers of performance
• Optimize at site/placement/creative level• Optimize at site/placement/creative level
• Create a single metric to drive optimization• Create a single metric to drive optimization
ROI/AttributionROI/Attribution • Drive to true ROI using modeling/attribution analytics
• Drive to true ROI using modeling/attribution analytics
1
2
4
5
Implement TrackingImplement Tracking
• Implement ad server and site tracking protocols
• Implement ad server and site tracking protocols3
1. Select the right objective
Leads
Engaged Visits
Impressions have an impact … but this is the broadcast model, overlooks
interactivity unique to digital
Only for “qualified” in-banner interactions associated with meaningful content
engagement
Not a meaningful engagement metric, bounce rates of 50%-90%
Engagement score + On-site end-actions signal meaningful engagement – 3+
pages, videos, pdf
Information exchange signals a level of consideration and brand commitment
Clicks / Visits
Interactions
Impressions
2. The campaign hierarchy must capture all drivers of performance
PricingPricing
TargetingTargeting
PropertyProperty
PlacementPlacement
Creative ConceptCreative Concept
Creative TechnologyCreative Technology
Creative Concept VersionCreative Concept Version
Offer / CTAOffer / CTA
CPMCPM
ContextualContextual
YahooYahoo
NewsNews
Concept 1Concept 1
FlashFlash
Concept 1AConcept 1A
CouponCoupon
CPCCPC
Geo/demographicGeo/demographic
CNNCNN
SportsSports
Concept 2Concept 2
VideoVideo
Concept 1BConcept 1B
WidgetWidget
CPACPA
RetargetingRetargeting
FacebookFacebook
FashionFashion
Concept 3Concept 3
Rich MediaRich Media
Concept 1CConcept 1C
SweepstakeSweepstake
Total Input Contributions
5. Use modeling to determining attribution and true ROI
Search contributed 17% of the explained variation in Display ads
Closing remarks
• Select the right metrics across three categories of the metrics pyramid
• Use the five step process for performance measurement
Believe in the Magic of Engaging and Measuring
“Thank You”
TWITTER: @vipinmayar
TWITTER: @geofframsey