Download - Digital Impact The Two Secrets to Online Marketing Success

October 4, 2011

Boston

Geoffrey Ramsey Vipin Mayar

TWITTER: @vipinmayar

TWITTER: @geofframsey

#digitalimpact#dma2011

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 challenge is – ‘Prove to me that marketing works’… that the investments are paying back in both short- and long-term deliverables.”

--Bob Liodice, CEO, ANA

“What’s at stake here?”

$1 TrillionTotal Marketing “Communications”

(VSS, Myers, PwC, etc)

$1 TrillionTotal Marketing “Communications”

(VSS, Myers, PwC, etc)

$368 BillionAdvertising & Marketing

(Outsell)

$157 Billion“Media” Advertising

(eMarketer)

$31 BDigital

(eMarketer)

Internet as “Hub”

Consumer time & engagementHuge purchase influenceMedia measurement “hook”= 20% of total media in 2011, and will surpass all print in 2012Power of one media to rule them all!

20.2%

Deutsche Bank……. 18.0%Barclays................... 16.5%MAGNAGLOBAL….. 15.6%PwC…………………. 15.5%Morgan Stanley……. 14.8%Citi…………….......... 14.6%Winterberry Group…. 14.0%IDC…………………… 13.8%WARC…..….. ………. 12.7%ZenithOptimedia……. 12.6%GroupM……………… 12.0%

1st Half

+23%

Total DM Spending

Growth in 2011:

+5.6%

Total Media Spending

Growth in 2011:

+1.4%

Where is the digital growth coming from?

http://www.the-dma.org/index.php

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.”

“It’s more about ATTRACTION, rather than

DISTRACTION.”

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?

Ask yourself, “Would I personally want to receive this content, and share it with others?”

Ask yourself, “Would I personally want to receive this content, and share it with others?”

Is it Unique?Fun?Well Executed?

Is it Useful?Is it working?!

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





Interaction Rate


FrequencyFrequency






Registration Rate





Interaction Rate


FrequencyFrequency






Registration Rate

Time on PageTime on Page Page CTRPage CTR Circular PathsCircular Paths Exit RateExit Rate





Interaction Rate


FrequencyFrequency




Conversion Rate CommentsComments ForwardForward Return VisitsReturn Visits


Registration Rate






Interaction Rate


FrequencyFrequency






Registration Rate






Interaction Rate


FrequencyFrequency






Registration Rate






Interaction Rate


FrequencyFrequency






Registration Rate

Only 7 Key Metrics to MasterOnly 7 Key Metrics to Master


Too many metrics… the big challenge is deciding the right metrics

Start with the measurement framework

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

LINKAGE

LINKAGE

LINKAGE

18

e.g., Qualified Reach

e.g., Brand Perception Lift,Engagement Score

e.g., ROI

Low level measures related to the

performance of individual channels

Higher level metrics related to longer term

changes in brand health

Highest level metrics used to quantify business

performance

Linkages are crucial,not just a report card

Engagement Score?

Engagement Score aligned to the objectives of the content

19

Recommend , referrals

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

Advocate

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 example for mappingEngagement Scores

Ultimately, you want to get all your Exposure, Strategic & Financial metrics onto a Dashboard

Applying Magnetic Content and Performance Measurement to the Six Digital Channels

Social

Mobile

Digital Digital ChannelChannel

#1:#1:SocialSocialMediaMedia

Digital Digital ChannelChannel

#1:#1:SocialSocialMediaMedia

Social Media: Connections that Count

How big is social networking today?

89% are onemail

83% are using search engines

232 million Americans, or 74%, are online today

Source: eMarketer, 2011TWITTER: @geofframsey

76% are buying online

68% are watching online video

64% are social networking

11%Twittering

http://e.businessinsider.com/7kh3.3es/TnufYyalTT_dSzaKB590b

Social media ad spending will grow 37% this year

9%of total US online ad

spend

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

How can you leverage trust through social media?

• Let your fans come to your rescue

• Allow for customer ratings & reviews

“terrible service!” “negligent!”

“#%@!!!”

“… accept the apology like an adult.”

When customers finish their taxes, they are prompted to share their reviews on Facebook and TwitterThese social updates generate 4X the click-through rate of a typical banner ad, and convert 30% more often than those who click on regular TurboTax ads

“Our customers are our best

salespeople!”--Colleen Gatlin, Intuit

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

#2. Listening leads to Learning

C.L.O.

A personal story about listening…

New strategy…

ESCALATE

Adobe, I hope you’re listening, because I’ve got a problem…

#3. Add value to the conversation…

UniqueUsefulWell executedFunGreat use of channel

Sometimes, the best Magnetic Content comes from your best customers.

Which is why you should:#4. Focus on Your Fans.

#4. Focus on Your Brand Fans:

Prospects

Customers

COREFANS

Find them via Social

Media

CORE

Nurture them

carefully

Empower them to share

Consumers Who “Like” or Follow a Brand:

•Are more likely to buy 1, 2, 3…………………. 51% •Are more likely to recommend 1, 2, 3……..…. 60%

•Are more likely to be loyal to the brand 3 …. 34%

Sources: 1) Chadwick Martin Bailey, Mar, 2010; 2) ROI Research, June, 2011; 3) DDB Worldwide and OpionWayResearch, Oct, 2011

SHARPIE: Finding Fans. Empowering Them. Nurturing Them.

Viewed 62 million times on YouTube

Viewed 62 million times on YouTube

% 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%

Applying our framework to social media


FinancialOutcomes

MarketingInvestment

LINKAGE

LINKAGE

LINKAGE

36

This is not the end game!

This is not the end game!

Conduct post-visit surveys with an

exposed vs. control group to determine lift in brand perceptions

To get to “ROI,” you need visibility into actual buying activity:

•Self-stated purchases;•Matching to a transaction database;•Capturing online purchases

Insert short video. Cut2 mts to 45 secs

ROI approach illustrated with an example

ConsumersConsumers

Incremental Sales LiftIncremental Sales Lift

Incremental RevenueIncremental Revenue

CostCost

ROIROI

ValueValue

$1,480,449 $1,480,449

6 to 16 to 1

77,753 77,753

$10,457,414 $10,457,414

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

Prescriptions X price

Price X margin

Loaded costs

Profit/costs

Unique visitors Viewing content

Digital Digital Channel Channel

#2#2

Digital Digital Channel Channel

#2#2 Mobile: The

Anytime, Anywhere Channel

Global execs see multiple devices and platforms as a key trend impacting their business

½ of marketers have mobile in their upcoming advertising plans…

51%51%

Source: IAB survey conducted by Ovum among 300 US firms, 2011

Source: Chief Marketer survey among 681 B2B and B2C marketers, 2011

?

John Von Neumann:

“There’s no sense in being precise when you don’t even know what you’re talking about.”

$1.2 B

Spending Growth in 2011

65%

--eMarketer, 2011

TV: 4 hrs, 24

mins

TV: 4 hrs, 24

mins

Internet: 2 hrs, 35

mins

Internet: 2 hrs, 35

mins

Mobile: 50 mins

Mobile: 50 mins

Newspapers: 30 mins

Magazines:20 mins

Newspapers: 30 mins

Magazines:20 mins

Mobile Search

Mobile Video

Mobile Social

MobileGaming

Mobile Apps

MobileCoupon

s

Smartphones

= 38%

of US mobile users

Smartphones

= 38%

of US mobile users

The biggest obstacle for mobile marketers is also the biggest opportunity:

“Excuse me?!”

Why marketers love mobile marketing…

“Mobile works best when it plays a supportive, additive role to other

media.”

Use mobile as an additive, integrated channel…

… to track, measure and enhance other media efforts Pepsi Max

#34520

Mobile coupon redemption rates can often reach

20%“Mobile can add two new exciting dimensions to your marketing efforts.”

--Noah Elkin, eMarketer

“Mobile can add two new exciting dimensions to your marketing efforts.”

--Noah Elkin, eMarketer

Space Time

While in stores, consumers are using their phones to compare prices, evaluate

products and check inwith trusted friends…

= intent

…This creates richopportunities to reach consumers just when

they are at the point of making a decision.

“Think of the real-time integration opportunities for

combining geo-location technology, email

and social media!”

Think before you app!

Think about the consumers’ needs

Think Utility, Think Fun!

Remember, you’re not just competing with other marketers, you’re competing with thousands of app developers for the consumers’ time and attention

What about measurement for mobile?

MMA/Google/Ipsos Survey, 2011:

41% of global marketers said they were not investing in mobile because of uncertainty about ROI

King Fish Media Survey, 2011:

63% of US marketers either a) hadn’t measured the ROI of their mobile campaigns or b) simply had no idea what it was

Chief Marketer Survey:

51% of mobile marketers are relying on clicks to measure campaign success!

Only about a 1/3 of marketers are integrating mobile with their cross-platform

media strategies

37% 29%*

Source: IAB survey conducted by Ovum, based on average of seven industry categories, June, 2011

Source: Chief Marketer survey among 681 B2B and B2C marketers, May, 2011

Start with the measurement framework


FinancialOutcomes

MarketingInvestment

LINKAGE

LINKAGE

LINKAGE

51

e.g., Qualified Reach

i.e., End Action Rate

e.g., ROI

Some kind of conversion: registration, coupon redemption, trial, email sign-up, purchase, etc.

Look at this in terms of Sales “Incrementality”:

•Increase in # of transactions and transaction size;•Increase in # of customers;•Additional revenue from m-commerce

Linkages are crucial,not just a report card

Believe in the Magic of Engaging and Measuring“Thank You”

VIPINTWITTER: @vipinmayar

GEOFFTWITTER: @geofframsey

#digitalimpact#dma2011

https://owa.emarketer.com/owa/redir.aspx?C=76e9214c68bb4787bdf6e2343bfa7f36&URL=https://cid-53fc7625fddf497a.skydrive.live.com/redir.aspx?page=play&resid=53FC7625FDDF497A!335&parid=53FC7625FDDF497A!334&type=1&Bsrc=Photomail&Bpub=SDX.Photos&authkey=n7xKKbKmLgI$

Download - Digital Impact The Two Secrets to Online Marketing Success

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