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END TO END CAMPAIGN PLANNING, EXECUTION AND MEASUREMENT Darryl Gray, Global Vice President – Sales & Business Development at SAP XM STRICTLY CONFIDENTIAL SAP Hybris Americas Summit October 14, 2016

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END TO END CAMPAIGN PLANNING, EXECUTION AND MEASUREMENT

Darryl Gray, Global Vice President – Sales & Business Development at SAP XM

STRICTLY CONFIDENTIAL

SAP Hybris Americas Summit

October 14, 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 2

• 29% of today´s media budget spent is digital.

€157bn

• 40% of tomorrows media budget

spent will be digital: €473bn

Loss of budget due to middle men

40%

Source: Total Media Ad Spending Worldwide 2015-2021, EmarketerDigital Media. Simplified.

Increased spending on digital media

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 3

• 60% of today´s global media budget spent is

lost to middle men in the value chain from

advertiser to publisher: €94bn of €157bn

• 60% of tomorrow's global media budget lost to

middle men would amount to €284bn

Loss of budget due to middle men

60%

Source : 2015 TNS Survey of Marketers (See Table 10, Page 29)Digital Media. Simplified.

Loss of media budget due to middle men

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 4Source : 2015 TNS Survey of Marketers (See Table 10, Page 29)

OLD WORLD

Digital Media. Simplified.

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 5Digital Media. Simplified.

NEW WORLD

The listed publishers are just examples for the US market. Specific inventory will be negotiated in

regards to the individual campaigns

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 6

• Ad-blocking grew by 41% globally in 2015, and is

estimated to cost publishers nearly $22bn

• 198 million users blocked ads in 2015

• More than 75% of U.S. online consumers don’t

trust ads and the numbers for digital media

are even worse

Loss of budget due to middle men

75%

Digital Media. Simplified.

Do we create relevant advertising?

Source: https://blog.pagefair.com/2015/ad-blocking-report/

Source: Adage http://adage.com/article/cmo-strategy/marketers-consumers-trust-ads/292591

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 7

Imagine…If we orchestrated end-to-end campaign planning, execution and measurement for improved ROI

Digital Media. Simplified.

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 8

• The vast majority of advertisers and media

companies – 90% – prefer an integrated

solution

Loss of budget due to middle men

90%

Source : Forrester (2016): Optimize Your Programmatic Online Ad Buying And Selling ModelDigital Media. Simplified.

What’s your preferred solution?

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 9

The challenge then?right audience+ right message+right channel+ right time

Digital Media. Simplified.

• Leverage the real-time contexts to deliver the

best and most relevant customer experiences

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 10

• 91% of marketers are prioritizing customer

experience through personalization

Loss of budget due to middle men

91%

Source:: “The Contextual Marketing Imperative”, Forrester Oct 2015Digital Media. Simplified.

Personalization is key

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 11

Loss of budget due to middle men

Sources: “Marketer Stuck on Basic Data for Personalization”, eMarketer June 2015 & “Mastering Adaptive Customer Engagement”, CMO Council 2014Digital Media. Simplified.

Only 16% have the capability to capture customer intent and respond in real time

80% don’t know much about their customers

Only 28% deliver a personalized experience across channels

However…Marketing is lacking key capabilities

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 12

Next generation marketing…An integrated solution leveraging a deeper understanding of your target customers and improved campaign performance while maximizing your overall ad spend ROI

Digital Media. Simplified.

+

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 13

Integrated solutionSupporting the end-to-end marketing process

Digital Media. Simplified.

<- Plan, measure, and optimize digital ad campaign in real-time in SAP XM ->

The perfect combination: SAP Hybris Marketing & SAP XM

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 14

Loss of budget due to middle men

Digital Media. Simplified.

IntroducingSAP XM

• Next generation, end-to-end, online media

network connecting advertisers, publishers

and digital agencies directly in the cloud

• Unique integration between AdTech and

MarTech – in real-time

• Better targeting leveraging 1st party data from

advertisers‘ corporate systems running on

SAP software (e.g. ERP, CRM, Hybris

Marketing & Commerce, POS, Ariba)

• Best-in-class user experience and real-time

performance overview

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 15

Loss of budget due to middle men

Digital Media. Simplified.

SAP XMThis is how it works…

\\DWDF213.wdf.sap.corp\ACI_LOB_SoH\56_Team_PM\MM\09 Blueprint & Capabilities\17 Rollout Material\SAP XM 1.2

Customer Rollout\XM12_MarTech-AdTech Integration_20160926.mp4

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 16

• SAP XM is the next generation, end to end, online media

network technology that connects advertisers, publishers

and digital agencies directly in the cloud in real-time

• SAP Hybris Marketing and SAP XM will empower you to:

• Easily integrate digital campaigns for your overall

marketing planning as well as in your overall corporate IT

structure

• Seamlessly manage the end-to-end planning, execution

and measurement of campaigns while leveraging a deeper

understanding of your target customers and prospects

• Improve campaign performance while maximizing your

overall ad spend ROI

Key take aways…Empower your team and improve your performance with SAP Hybris Marketing and SAP XM

Digital Media. Simplified.

© 2016 SAP SE or an SAP affiliate company. All rights reserved STRICTLY CONFIDENTIAL 17

We can help you:

1. Assess your statusFree of charge pre-assessment of your paid digital and

digital advertising processes by leading consulting partner

EY as a neutral 3rd party instance

2. Leverage competitive edge online advertisingTransform online advertising in your company and

successfully and continuously reap the benefits created

through your collaboration with SAP Hybris Marketing and

SAP XM

Let‘s get started…Leverage competitive edge online advertising

Digital Media. Simplified.

THANK YOU!

Darryl GrayGlobal Vice PresidentSales & Business Development at SAP XM

STRICTLY CONFIDENTIAL

SAP Hybris Americas Summit

October 14, 2016

BACK-UP SLIDES…

STRICTLY CONFIDENTIAL

© 2015 SAP SE or an SAP affiliate company. All rights reserved 20

SAP S/4HANA, cloud marketing edition + SAP XMH1/2016

Retrieval of transactional campaign data from SAP XM

Monitor SAP XM campaign

Marketing Expert

Marketing Expert

Media Expert

Campaign is created in SAP XM with Status ‚Draft‘Create New

Campaign in yMarketing

Maintain Campaign Data Retrieving Parameters from SAP XM

Release yMktCampaign and Create Campaign in SAP XM

Views campaign in SAP XM

edits campaign in SAP XM

Activate and release campaign

1

8 9

3

65

2

7

4

© 2015 SAP SE or an SAP affiliate company. All rights reserved 21

Typical Process of a Digital Advertising Campaign TodayTarget Design of Fully Digitized Media Process

Define Marketing Plan

Create Brief and Digital Ad Campaign

Auto-generate SAP XM Ad Campaign and create task

Monitor Marketing Campaign Progress

Global optimization of marketing plan

Marketing Expert

MediaExpert / Agent

Major Issues

Workflow & Transparency

• No media breaks:All activities system-based and fully integrated

• Full transparency on budget utilization and media tactics to marketing department

• All changes are communicated across all process stakeholder

• To-down target break-down and assignment. Integration of digital ad campaigns in superordinate marketing campaigns

Accuracy & Efficiency

• Auto-optimization of digital ad campaign and recognition of global adjustments to marketing plan or campaign

• Consideration of marketing 1st party data and enablement of “segment of one targeting”

• Integrated marketing reporting mapping digital ad campaigns to overall marketing KPI

• Instant and real-time transparency on major marketing KPIs and progress of digital ad campaign

Bu

sin

ess

Pro

ce

ss

Finalize configuration of ad campaign (inventory selection and targeting) and activate

Execute and auto-optimize ad campaign

SAP S/4HANA, cloud marketing edition

© 2015 SAP SE or an SAP affiliate company. All rights reserved 22

©2015 SAP SE or an SAP affiliate company.All rights reserved.

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Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop

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