Disney Breakout

The value of a holistic

marketing effectiveness

initiative

Welcome

Nathan Vadeboncoeur

Manager, Marketing Analytics and Optimization

Disney Parks and Resorts

Scott Nuernberger

Vice President

Quantitative Marketing Group

Merkle

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Objective

• Provide overview of an Disney’s multi-year marketing effectiveness initiative

• Highlight importance of a centralized data store for media and business

response data

• Demonstrate value generated for Disney through quick examples:

– Marketing performance dashboards

– Marketing mix models across the sales funnel

– Robust scenario planning and optimization

– Relevance to CFO on proving business impact of marketing program

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Business Overview

• Disney Parks and Resorts • One segment of the Disney Company • $12B in Revenue

• Disney Parks and Resorts Marketing • Responsible for all marketing

• Walt Disney World • Four Theme Parks (Tickets, Passes)

• New Fantasyland opened in December• Two Water Parks (Tickets, Passes)• 25 Resort/Disney Vacation Club (DVC) Properties ~25,000 Rooms

• Downtown Disney• Shopping, dining, night clubs

• ESPN Wide World of Sports• Disneyland

• Two Theme Parks (Tickets, Passes)• California Adventure Expansion (May)/Cars Land opened (June)• Three Resorts

• Disney Cruise Line • Four ship fleet

• Disney Vacation Club • Adventures By Disney• Aulani, A Disney Resort & Spa, Ko Olina, HI

Marketing Effectiveness Initiative

Goals•Create robust, automated, holistic foundational data store•Transform analytics from last click to partial attribution model•Analyze performance data, along with associated costs and investments, to measure ROI and determine overall value•Use learnings to make wiser decisions on future goals, overall marketing mix, and specific campaigns and tactics

Considerations•Identify a “Common Currency” across media•Define, categorize and prioritize >200 metrics across all business units to develop meaningful and valuable KPIs •Provide granularity of data to allow for measurement at a variety of discipline, tactic and geographic levels •Support both analytic efforts and marketing performance reporting/dashboards

Foundation is a centralized Marketing Effectiveness Data Store

MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns

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MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns

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Wealth of metrics available to select including:• Site traffic• Report bookings and room

nights• Social metrics

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MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns

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Also showing awareness and intent metrics from market research

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MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns

* Note: all data changed to protect confidentiality

Market level comparative metrics

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MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns

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Map view provides wealth of metrics by market

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MEDS Also Feeds Centralized Reporting for all Media Activity

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Overall Media summary page with drill down dashboards for each media

TV Detail

Video Detail

Radio Detail

Print Detail

Online Detail

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Media Summary View Provides One Overview Across All Media

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TV Detail Dashboard Can Also Drill Down into Dayparts, Networks, Markets

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15 * Note: all data changed to protect confidentiality

Objective

• Provide overview of an Disney’s multi-year marketing effectiveness initiative

• Highlight importance of a centralized data store for media and business

response data

• Demonstrate value generated for Disney through quick examples:

– Marketing performance dashboards

– Marketing mix models across the sales funnel

– Robust scenario planning and optimization

– Relevance to CFO on proving business impact of marketing program

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Analysis Example #1: Funnel Models

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0% 20% 40% 60% 80% 100%

Online Booking Engine

Calls

Vacation Planning Kit

Web Visits

Search (Paid)

Search (Google Trends)

TV

TV

TV

TV

TV

TV

Display

Display

Display

Display

Display

Display

Contributions by Model

Base TV Radio Direct (DM/EM) Display Search

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Although the modeling focus is generally on driving resort bookings, additional models were built to assess the impact of media higher in the funnel

This view provider more complete picture of media impact along the sales funnel

TV has strong impact in driving on-line shops as does display

EM/DM has strong impact in DRC calls as well as net bookings

Optimization scenarios can be run with any budget level and set of constraints. It is this flexibility that makes

scenario planning an effective tool to aid decision making

To illustrate, twelve optimization scenarios were run:

− Different overall budget levels (90%, 100%, 110%, and 120%)

− Different media held fixed

Any media not fixed were constrained to only change by plus or minus 30%

Results are highlighted in table below. The value in each cell represents the change in expected resort

bookings.

Detail media spend change for scenario highlighted in red shown to right

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Total BudgetScenario 90% 100% 110% 120%

Nothing fixed 1.8% 10.2% 14.3% 19.7%

Intent TV Fixed -2.1% 6.7% 12.3% 17.9%

All Intent Media Fixed -3.9% 5.7% 11.8% 17.4%

Media Change in Spend

Display (Conversion) $284,395

Display (Intent) -$356,623

Direct Mail (Conversion) $1,030,278

Email (Conversion) $297,177

Magazine (Conversion) $213,982

Radio (Conversion) $547,050

Search (Conversion) $1,537,745

Search (Intent) $582,038

TV (Conversion) -$1,292,684

TV (Intent) $0

Grand Total $0

The 6.7% increase was achieved by making these changes to spend by media

* Note: all data changed to protect confidentiality

Analysis Example #2: Optimization Scenarios

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-100%

-50%

0%

50%

100%

150%

200%

250%

300%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Marketing Spend as % of Revenue

Mar

gin

al P

rofi

t R

OI

Marginal Profit ROI = the profit generated with $1 increase in marketing investment over current spend levels (0% is break even).

Size of bubble represents size of marketing spend

Disney

Industry 5

Industry 4Industry 3Industry 2Industry 1

* Note: all data changed to protect confidentiality

Analysis Example #3: Comparative Analysis

Industry comparative view of marginal marketing ROI informs broad decisions on value of marketing as a whole

Summary

• Disney embraced a long term marketing effectiveness initiative which included

organizational alignment and focuses on building required infrastructure

• The broad range of data gathered in a marketing effectiveness database

(MEDS) provides a complete picture of marketing activity and effectiveness for

all groups within Disney and their partners

• Always having the data present, validated, and up to date enables quick

turnaround of analyses to keep pace with quickly changing marketing

landscape

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Thank You!

Q&A

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