The Marketing Metrics that Actually Matter featuring Senior Forrester Analyst, Tina Moffett
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Transcript of The Marketing Metrics that Actually Matter featuring Senior Forrester Analyst, Tina Moffett
Featuring Tina Moffett, Senior Analyst, ForresterWith Kelly Eng, Senior Product Marketing Manager, AdRoll
Starting Shortly #clicktomaniac @adroll
Adopt Advanced Marketing Measurement Approaches To Connect With CustomersTina Moffett, Senior Analyst
© 2015 Forrester Research, Inc. Reproduction Prohibited 4
Agenda
› Consumer and Marketing Trends› Advanced Measurement
Approaches› Critical Steps For Success
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
› Consumer and Marketing Trends› Advanced Measurement
Approaches› Critical Steps For Success
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
Connected bodies
Connected cars
Connected doughnuts?
The world around us has changed . . .
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
. . . and mobile accelerated that shift
Source: Forrester’s US Mobile Mind Shift Online Survey, Q3 2013; Forrester Research World Mobile And Smartphone Adoption Forecast, 2014 To 2019 (Global); and Forrester Research World Tablet Adoption Forecast, 2013 To 2018 (Global)
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
The age of the customer
A 20-year business cycle in which the most successful enterprises will
reinvent themselves to systematically understand and serve increasingly
powerful customers
© 2015 Forrester Research, Inc. Reproduction Prohibited 9
In the age of the customer, individuals are always-addressable…
61% of online adults are “always addressable” – using at least 3 internet connected devices from multiple different locations, multiple times a day.
© 2015 Forrester Research, Inc. Reproduction Prohibited 10
B2C marketing budgets have increased in 2015…..
Source: 2015 The Year Of The Big Digital Shift
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
….so, marketing executives are investing heavily in measurement and analytics
Source: 2015 The Year Of The Big Digital Shift
© 2015 Forrester Research, Inc. Reproduction Prohibited 12
Yet marketers have their challenges
Source: Forrester’s BT Marketing Survey, Q3 2015
Marketers struggle to manage data, react quickly
to changing customer behaviors, and measure
results
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
Firms that are analytic leaders are confident in their measurement, insights, and metrics
Source: The State of Customer Analytics: Most Firms Lack Sophistication
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
The spotlight is on measurement and insights to prove the value of marketing
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Agenda
› Consumer and Marketing Trends› Advanced Measurement
Approaches› Critical Steps For Success
© 2015 Forrester Research, Inc. Reproduction Prohibited 16
Customers are influenced by many sources, challenging traditional measurement approaches
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Different measurement approaches ranges from simple to sophisticated
› Measurement approaches vary, depending on objective
› Each approach provides value, given a marketers maturity
© 2015 Forrester Research, Inc. Reproduction Prohibited 18
Marketing mix modeling estimates, optimizes, and predicts the impact marketing has on the business
Measures, analyzes and optimizes marketing plans
Gives CMOs a planning roadmap
Measures overall marketing’s impact on business objectives
Cannot provide insights on tactical marketing or media performance
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
Advanced attribution reassigns value to tactical marketing initiatives
Accurately measures and optimizes marketing activity at the tactical level
Provides marketing performance metrics reflective of the customer journey
Provides marketing performance metrics reflective of the customer journey
Fails to incorporate other critical data points
© 2015 Forrester Research, Inc. Reproduction Prohibited 20
Ad viewabilty challenges attribution measurement
› Non-viewable ads must be considered in advanced attribution models.
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
The future of measurement is unified marketing impact anlatyics
› Uses multiple methodologies---like attribution and marketing mix modeling—together
› Considers non-marketing effects that influence business results
› Connects data across different platforms
› Keeps models in tune with the current customer environment.
© 2015 Forrester Research, Inc. Reproduction Prohibited 22
Agenda
›Consumer and Marketing Trends
›Advanced Measurement Approaches
›Critical Steps For Success
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
Measurement is a journey, not a destination
› Assess your measurement capabilities.› Take stock of your data—identify connection
points between channels, data quality issues, and sourcing.
› Go beyond the click and measure marketing impact on ROMI and Customer Value.
› Get support from customer insights, analytics, and marketing counterparts.
Attribution is still a challenge
Attribution is still a challenge“Last click is dead”…is dead.
We know last click is wrong, but what’s right will be different for each marketer.
We know post-click is incorrect
8% users account for 85% of clicks
Post-click-only doesn’t make sense as a KPI.
It only tells you about a small subsection of your audience.
USERS
8%
85%
CLICKS
The largest firms agree blended is better
Google HomeAway Case Study
But View through Conversions still scare marketers
What if the ad wasn’t
seen?
View-through conversions aren’t real
View-through conversions are
over-counted
We’ve always done it this way
My boss only cares about clicks
VTCs don’t fit into our current
attribution model
Valuing Views Intelligently• Use data to lead
decisions on how to value a view-through conversion
• AdRoll’s data shows difference in buying behavior by vertical
• Use buy cycle to inform model
Two approaches to valuing a view• Percentage
•Count 15% of VTCs for 30 days
• Lookback window• Count 100% of VTCs for 1 day
Using Percentage Weights for Views
Assumes x% are incremental over a longer time period.
Can use vertical benchmarks or an A/B test to calculate
Sales without retargeting
Sales with retargeting
% lift
Using shortened lookback windows• Set a shorter window, depending on
buyer behavior
• Each industry has trends and best practices
• Important to use as a starting point then validate
$
Attribution is complicatedBut we’re learning more all the timeUse better attribution to better understand campaign’s impact on your bottom line
Test, Validate, IterateValidate model by tying back to actual sales data
Don’t set it and forget it.
Make sure your marketing numbers align with your sales numbers.
Adjust your conversion model as you learn more. 1 2 3
Campaign
launched
Campaign
optimized
Campaign ended
There is no one attribution model to rule them all
Building the right attribution model
Invest in smart modelA smarter blended
model will return on the time invested
Let data leadIterate on model as you
learn more about customer behavior
ValidateVerify by looking at actual conversion
outcomes
ACME