emarketer breakfast - digital impact: two secrets to online marketing success

June 23, 2011

New York City

eMARKETER Breakfast

Geoffrey Ramsey Vipin Mayar

Can you identify with these two 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

edge of cliff here

• Accountability mandate drivingneed for more efficient media

• Fragmentation = niche audiences

• Shift to “owned” and “earned” media

$1 TrillionTotal US Marketing

(VSS, Myers, PwC, etc)

$1 TrillionTotal US Marketing

(VSS, Myers, PwC, etc)

$368 BillionAdvertising & Marketing

(Outsell)

$157 BillionTraditional & Digital

Advertising(eMarketer)

$31 BDigital

(eMarketer)

Internet as “Hub”Consumer time & engagementHuge purchase influenceMedia measurement “hook”= 20% of total media in 2011

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 most commonly used metrics – CTR/time spent cannot be used by themsleves

The industry has not come up with a common definition of engagement that is aligned with brand business results and ROI.

Performance measurement online: know the right metrics framework

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.”

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?

“What can I do for you, the consumer, that is unique and valuable, i.e., truly worth your time and attention?”

“What can I do for you, the consumer, that is unique and valuable, i.e., truly worth your time and attention?”

Is it Unique?

Is it Useful?

Is it Fun?Home sales of blenders up 700% since the

video series began!

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

How do we optimize traffic?How do we optimize traffic?





Interaction Rate


FrequencyFrequency






Registration Rate

Does the media drive high quality traffic?Does the media drive high quality traffic?

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

How do we improve our creative?How do we improve our creative?





Interaction Rate


FrequencyFrequency




Conversion Rate CommentsComments ForwardForward Return VisitsReturn Visits


Registration Rate






Interaction Rate


FrequencyFrequency






Registration Rate

Do we have the right site content?Do we have the right site content?






Interaction Rate


FrequencyFrequency






Registration Rate

Is site navigation working as intended?Is site navigation working as intended?






Interaction Rate


FrequencyFrequency






Registration Rate

Evaluating display adsEvaluating display ads


Too many metrics… big challenge is deciding the right metric

Start with the measurement framework

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

LINKAGE

LINKAGE

LINKAGE

25

ExposureMetrics

StrategicMetrics

FinancialMetrics

Financial/business metrics used to quantify business performance

Low level measures related to performance of individual channels

Customer/brand activity metrics at the program, segment, and product level

ROI

Key campaign metrics - example

26

1. Qualified Reach

2. CTR

3. Brand perception Lift

4. Engagement Score

5. End Action Rate

6. Efficiency Metrics (Cost/X)

7. ROI

We recommend 7 metrics to master

Engagement Score: new framework/metric

ViewView

InteractInteract

RespondRespond

ShareShare

CreateCreate

AdvocateAdvocate

• Ad exposure• Web Site Exposure• Ad exposure• Web Site Exposure

• Videos• Demos• Webcasts

• Videos• Demos• Webcasts

• Info Request• Post comment• Coupons

• Info Request• Post comment• Coupons

• Send to a friend• Review comment• Send to a friend• Review comment

• Post on blog• Upload images, videos• Post on blog• Upload images, videos

• Word of Mouth• Recommendation• Word of Mouth• Recommendation

ACTIVITIESACTIVITIES METRICS TAXONOMY

METRICS TAXONOMY

• Impressions• Clicks• Page Views

• Impressions• Clicks• Page Views

• Initiations• Completions• Time

• Initiations• Completions• Time

• Open Rate• Response Rate• Redemption Rate

• Open Rate• Response Rate• Redemption Rate

• Viral Transfer Rate• Response Rate• Viral Transfer Rate• Response Rate

• Online buzz• Sentiment• Online buzz• Sentiment

• Discussion Volume• Reco. Rate• Discussion Volume• Reco. Rate

Transact Purchase

Engagement Score aligned to the objectives of the content

29

Widgets, Download apps

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

Extend

ILLUSTRATIVE ENGAGEMENT

Engagement Index Methodology

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 points for engagement

Enga

gem

ent P

oint

s

Visitors

Qualified Engagement and Visit Threshold

Qualified Visitors

Allows you to determine engagement thresholds

Gain in Engagement Below Threshold Do Not Drive BehaviorUse Engagement Score

and Qualified Visits in your

digital measurement

Applying Magnetic Content and Performance Measurement to the Six Digital Channels

Social

Display

Digital Digital ChannelChannel

#1#1

Digital Digital ChannelChannel

#1#1 Social Media: Connections that Count

What % of Internet users go to social sites?What % of Internet users go to social sites?

% of US Internet users who participate in social networks (2010)

Source: eMarketer, 2011; *with some level of frequency

20% NOT using social?!?

Social media spending will continue to skyrocket in 2011

10%of total US online ad spend

33% of display impressions*

17% of display ad dollars**

*comScore, 2011**eMarketer, 2011

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

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

Transparency Trust=

“terrible service!” “negligent!”

“#%@!!!”

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

Listening leads to Learning

“By listening carefully, we harness social media as an early alert system.. so we can react quicker to issues.”

--Richard Brinhammer, Dell

New strategy…

ESCALATE

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

Add value to the conversation…

Censored

UniqueUsefulWell executedFunGreat use of channel

Focus on Your Brand Enthusiasts:

Prospects

Customers

CORE

Find them via Social

Media

Nurture them carefully

Empower them to share

Consumers Who “Like” or Follow a Brand:

•Are more likely to buy 1, 3, 4…………………. 51%

•Tend to spend more money 2……………….. $71 •Are more likely to recommend 1, 3, 4……..…. 60%

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

Sources: 1) Chadwick Martin Bailey, Mar, 2010; 2) Syncapse, 2010;3) ROI Research, June, 2011; 4) DDB Worldwide and OpionWayResearch, Oct, 2010

% 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%

Marketers also believe Social Media is a key driver of brand awareness and affinity, but not so much sales

Applying our framework to social media

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

LINKAGE

LINKAGE

LINKAGE

50

A “like” is not the end game

KPI metricsUnique VisitorsClicksEngagement: QVTM

Reported intended behavior

•Purchase

Firm placing Content on site

Illustration

Vote

Comment Posting

Linking

Political Blog

ROI

Perception Shift

Once you have the right set of metrics, can you get to ROI?

Access to a purchase is required

Visibility into Purchase through eitherSelf stated

Matching to transaction databaseCapturing online purchase

The typical method of getting to ROI

Build Control Group

Build Control Group

Calculate ROICalculate ROI

Determine LiftDetermine Lift

Survey VisitorsSurvey Visitors

• Identify similar consumers who have not visited site using panel

• Administer the same survey to panelists

• Identify similar consumers who have not visited site using panel

• Administer the same survey to panelists

• Capture all costs of digital marketing beyond media • Capture all costs of digital marketing beyond media

• Re-contact both test and control X days later to capture lift based on self-reported transactions or get actual transactions

• Re-contact both test and control X days later to capture lift based on self-reported transactions or get actual transactions

• Track on-site behavior• Conduct post-visit survey to capture perceptions and

demographics

• Track on-site behavior• Conduct post-visit survey to capture perceptions and

demographics1

2

3

4

ROI approach illustrated with an example

ConsumersConsumers

Incremental Sales LiftIncremental Sales Lift

Incremental RevenueIncremental Revenue

CostCost

ROIROI

ValueValue

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

5.4 to 15.4 to 1

77,753 77,753

$9,457,414 $9,457,414

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

from site visitors

Prescriptions X price

Price X margin

Loaded costs

Profit/costs

Unique visitors from site tool

Digital Digital Channel Channel

#2#2

Digital Digital Channel Channel

#2#2 Display:

The Branding that Creates the Intent

• Influx of SMB display buyers due

to self-servebuying platforms

• Improvements indisplay targeting,

buying efficiencies and measurement

and metrics

• Social networkscreating new

display adopportunities

• Hockey stick growth in video

Awareness

InterestAttitudes

Perceptions

Pre-purchaseinfo gathering

Transaction

Display ads create the demand, while search ads capture that demand…88% of Internet

users shop and research online prior to buying

--eMarketer, 2011

Not justsearch engines

Opportunity to influence prospects even before they do any research!

Online display ads can drive consumer activity – but you need to measure it!

Do a SearchDo a Search

Visit WebsiteVisit Website

PurchasePurchase

Over ti

me

Online display ads drive 44% of ultimate online transactions,

whereas paid search drives only 27%

--C3 Metrics Labs, Jun, 2011

Six Best Practices for Magnetizing Customers through Display Ads

1. Creative counts

2. Super-size your ads

3. Pay attention to context

4. Use the latest targeting tools

5. Integrate display with search, social, mobile

6. Use display ads to drive consumers to your Magnetic Content

Creative execution counts

Use display ads (“paid media”) to drive consumers to your Magnetic Content

Display landscape becoming increasing complex

Integration of many data sources + real time placement

+ Complex analytics for

testing & optimization

Demographic

Psychographic

Geographic

Behavioral

Client

Premium Publishers

The ostrich effect

ExposureMetrics

StrategicMetrics

FinancialMetrics

Financial/business metrics used to quantify business performance

Low level measures related to performance of individual channels

Customer/brand activity metrics at the program, segment, and product level

ROI Sales Volume

Key campaign metrics - example

63

Five steps to total performance measurement for display ads

Map DriversMap Drivers

OptimizeOptimize

EstablishObjectivesEstablishObjectives

• Create a campaign hierarchy that captures all drivers of performance

• Create a campaign hierarchy that captures all drivers of performance

• Optimize at site/placement/creative level• Optimize at site/placement/creative level

• Create a single metric to drive optimization• Create a single metric to drive optimization

ROI/AttributionROI/Attribution • Drive to true ROI using modeling/attribution analytics

• Drive to true ROI using modeling/attribution analytics

1

2

4

5

Implement TrackingImplement Tracking

• Implement ad server and site tracking protocols

• Implement ad server and site tracking protocols3

1. Select the right objective

Leads

Engaged Visits

Impressions have an impact … but this is the broadcast model, overlooks

interactivity unique to digital

Only for “qualified” in-banner interactions associated with meaningful content

engagement

Not a meaningful engagement metric, bounce rates of 50%-90%

Engagement score + On-site end-actions signal meaningful engagement – 3+

pages, videos, pdf

Information exchange signals a level of consideration and brand commitment

Clicks / Visits

Interactions

Impressions

2. The campaign hierarchy must capture all drivers of performance

PricingPricing

TargetingTargeting

PropertyProperty

PlacementPlacement

Creative ConceptCreative Concept

Creative TechnologyCreative Technology

Creative Concept VersionCreative Concept Version

Offer / CTAOffer / CTA

CPMCPM

ContextualContextual

YahooYahoo

NewsNews

Concept 1Concept 1

FlashFlash

Concept 1AConcept 1A

CouponCoupon

CPCCPC

Geo/demographicGeo/demographic

CNNCNN

SportsSports

Concept 2Concept 2

VideoVideo

Concept 1BConcept 1B

WidgetWidget

CPACPA

RetargetingRetargeting

FacebookFacebook

FashionFashion

Concept 3Concept 3

Rich MediaRich Media

Concept 1CConcept 1C

SweepstakeSweepstake

Total Input Contributions

5. Use modeling to determining attribution and true ROI

Search contributed 17% of the explained variation in Display ads

Closing remarks

• Select the right metrics across three categories of the metrics pyramid

• Use the five step process for performance measurement

Believe in the Magic of Engaging and Measuring

“Thank You”

[email protected]

TWITTER: @vipinmayar

[email protected]

TWITTER: @geofframsey

mailto:[email protected]

mailto:[email protected]

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emarketer breakfast - digital impact: two secrets to online marketing success

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