Performance 2010 Joris Merks Google

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Pakhuis de Zwijger, Amsterdam 2 december 2010 Pakhuis de Zwijger, Amsterdam 2 december 2010 Welkom EMERCE Performance Based Advertising

Transcript of Performance 2010 Joris Merks Google

Page 1: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010 Pakhuis de Zwijger, Amsterdam2 december 2010

Welkom

EMERCE Performance Based Advertising

Page 2: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Agenda

1. How much do we know about ROI?2. Three most asked questions?3. How can we compare quality of what we buy?4. When will we plan on ROI?

Twitter: #PBA10

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Google Confidential and Proprietary

Clicks

Reach

Synergy

Purchase

Latent conversionROPO

Brand effectQualityTargeting

ImpressionsConversions

Frequency

Cost/GRP

Demographic targeting

o2s

Attention

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Pakhuis de Zwijger, Amsterdam2 december 2010

Ad Contact

Click

BuyOnline

Dir

ect

Con

vers

ion

= 0,

1%

Page 5: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Ad Contact

Click

BuyOnline

Dir

ect

Con

vers

ion

= 0,

1%Searching, orienting,

brand effect…

BuyOnline

Lat

ent

Con

vers

ion

= +

?%

Page 6: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Click

BuyOnline

Dir

ect

Con

vers

ion

= 0,

1%Searching, orienting,

brand effect…

BuyOnline

Lat

ent

Con

vers

ion

= +

?%

ROPO, brand effect…

BuyOff-line

O2S

Con

vers

ion

= +

?%

Ad Contact

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Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1

2

3

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Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2

3

Page 9: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2 “If I spend X, how much effect?”

3

Page 10: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2 “If I spend X, how much effect?”

3 “How can I iterate my media mix on ROI?”

Page 11: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2 “If I spend X, how much effect?”

3 “How can I iterate my media mix on ROI?”

Page 12: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2 “If I spend X, how much effect?”

3 “How can I iterate my media mix on ROI?”

…but sorry…not possible…

Page 13: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Advertising is…

Creating impressions which are noticed, understood, appreciated, linked to the brand

and remembered by relevant people

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Pakhuis de Zwijger, Amsterdam2 december 2010

Brand and advertising tracker

€ 100.000,-

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Pakhuis de Zwijger, Amsterdam2 december 2010

Brand and cross media steering

€ 250.000,-

Page 16: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “How much should I spend On-line versus Off-line?”

2 “If I spend X, how much effect?”

3 “How can I iterate my media mix on ROI?”

…but sorry…not possible…

Page 17: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Three most asked media questions

1 “What are cost/ERP per medium/format?”

2 “If I spend X, how much effect?”

3 “How can I iterate my media mix on ROI?”

Page 18: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Cost/ERP is…

Cost per

USEFULimpression

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Pakhuis de Zwijger, Amsterdam2 december 2010

Media is…

Creating impressions which are noticed, by relevant people

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Pakhuis de Zwijger, Amsterdam2 december 2010

Medium/Format Efficiency

(Cost/ERP)

Impression Efficiency(Cost/GRP)

Targeting Efficiency(%contacts with relevant people)

Impression Impact(impact per impression)

Page 21: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Medium/Format Efficiency

3.0?

Medium/Format Efficiency

1,4?

Medium/Format Efficiency

1,9?

TargetingEfficiency

Index: 15,0?

Impression Impact

Index: 0,50?

ImpressionEfficiencyIndex: 5,0?

TargetingEfficiencyIndex: 1,2?

Impression Impact

Index: 0,50?

ImpressionEfficiency

Index: 0,25?

TargetingEfficiencyIndex: 1,4?

Impression Impact

Index: 4,0?

ImpressionEfficiency

Index: 0,25?

Pre-roll

Page 22: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Targeting + A

ttention

Cost/E

RP

TV Ad 1

TV Ad 2

Reach, F

requency, co

st/GR

P...

Page 23: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

Brand Funnel(available in any panel)

Orienting Behaviour(Gfk-MEP + TNS)

Purchase Behaviour(Gfk-MEP only)

Single SourceRelation

Effect Metrics

Media Contacts

TVRadioPrint

MailingsOnline

Page 24: Performance 2010 Joris Merks Google

Pakhuis de Zwijger, Amsterdam2 december 2010

outdoor meter (GPS)+ store visits

print meter (powered by Goggles)Barcode Scanner to capture purchases

TV & radio meter

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Pakhuis de Zwijger, Amsterdam2 december 2010

+ +

✔ ✗

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Pakhuis de Zwijger, Amsterdam2 december 2010

Three steps to ROI

1 Experiment and measure to compare Cost per USEFUL impression (cost/ERP)

2 Cross media modelingValidate value per ERP specific to your brand & market

3Cross media iterationIntegrated planning & Passive Single Source measurement of Media, Behavior & Purchase

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Pakhuis de Zwijger, Amsterdam2 december 2010

Let’s go for it…