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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 Evolutionrex@marketingevolution.com

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 (sriddle@telmar.com)

• Jason Wertheimer (jason.wertheimer@marketingevolution.com)

• Rex Briggs (rex@marketingevolution.com)

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

Print

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

Twitter

ePrize

DataCore PR

agencies

Dozens of Data Sources

Coupons Inc.

MSN Ad Center

YouTube

Listening

Facebook

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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