measuring marketing spend - insight...
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Measuring Marketing Spend:Multi-Stage Marketing Mix ModelingDoug JensenVP, CRM & Corporate Marketing AnalyticsEstée Lauder Companies
October 2018
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Marketing Objective: Accurately Measure Marketing Across the Consumer Decision Journey› Challenge / Opportunity:
• Measure marketing objectives when sales isn’t the only outcome• Measure the tactics’ contribution on each stage of the journey:
awareness, consideration / engagement, conversion• Understand how upper funnel tactics contribute to each stage of the
journey• Determine how digital & e-commerce marketing efforts drive upper
funnel activity• Measure e-commerce marketing halo onto brick & mortar
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Consumer Decision Journey› We conduct consumer research to determine the important touch points on the consumer’s
journey with our brand in a key category
In-store Displays and assortments
AdvertisingIn-store Experts
Word of Mouth
Social Media (“Owned” and “Earned”)
Online reviews Promotions
The counter experience
› Answers questions such as:
• What are the purchase journeys for a brand in a given category?
• What tactics or touch points are important for awareness, consideration, conversion?
• What does this mean for our brands?
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Consumer Decision Journey / Funnel = Many Tactics
ENGAGE
CONVERT
Traditional TacticsOnline
Brand-Owned Retailer Influencer
• Traditional Paid Media
• Editorials, PR mentions
• Sampling• Events• Word of Mouth
• Non-Branded Search• Paid / Non-Paid Social• Awareness Display• Prospecting (Look-a-like
Targeting)• Native Content• Tutorials/How-to Videos
• Tutorials/How- to Videos
• Co-op Awareness Display
• Repurpose influencer UGC and cultivate influencer relationships
• Retail Events• Retail Windows• In-store
Navigation
• Paid Social / Paid Video• Brand Social Posts• Live Chat
• Content / Visibility on Retailer sites
• Influencer-led retail “meet-up” events
• Product demostration
• In-store Samples• Direct Mail
• Branded Search• Performance Display• Retargeting Display• Live Chat• Email• Online Sampling
• Co-op Performance Display
• Sampling• GWP
• Partnerships with influencers for promotions or discount codes (if appropriate)
• Demo• Loyalty Programs
(Brand and Retail)• Direct Mail
• Online Exclusives• Loyalty Programs• Email• Live Chat• Ratings & Reviews
• Retailer Loyalty Programs
• Product collaborations with Influencers
AwarenessCreate Demand &
Drive Traffic
Consideration & Engagement
Conversion & Loyalty
› There are many choices!
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Marketing Mix Modeling – Multi-Stage Approach› Multi-stage approach is a cascade model that measures the direct and indirect effects of marketing
performance at each stage of the consumer journey / purchase funnel
› Multi-stage approach allows to measure impact of both offline and online media investments on awareness, consideration, and conversion to sales
1. AWARENESS 2. CONSIDERATION 3. CONVERSION
QUERIES
(GOOGLE)
WEBSITE TRAFFIC
IN-STORE-SALES
Offline Media
Online Media
Display
Social
TV
Radio
OOH
Search Indirect impact
Direct impact Direct impact
Direct impact
STEP 1: IMPACT OF BOTH
ONLINE & OFFLINE MEDIAON SEARCH QUERIES
Indirect impact
In-Store
Promotions
Worker Hours
Other actions, etc.
ECOMM-SALES
STEP 2: IMPACT OF BOTH
ONLINE & OFFLINE MEDIAON WEBSITE TRAFFIC
STEP 3: IMPACT OF BOTH
ONLINE & OFFLINE MEDIAON B&M
AND ECOM SALES
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Marketing Mix Modeling – Multi-Stage Approach› Estimate a total ROI per marketing lever by funnel area by integrating online to store effect
› Identify differences of efficiency between lever at each step of customer purchase
1. AWARENESSQueries
2. CONSIDERATIONWebsite Traffic
3. CONVERSIONSales
Contribution
ROI
Illustrative
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Google & Facebook Actively Partner on Measurement
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Marketing Mix Vendors
Source: Forrester Research, “Marketing Mix Modeling Landscape Overview” by Luca Paderni, 2011 (classifications), updated with additional vendors listed in Forrester Wave, Q4 2016
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My Perspective on Marketing Mix Modeling vs Multi-Touch Attribution
Multi-Stage Marketing Mix Multi-Touch AttributionStrategic vs. Tactical Strategic Tactical
Areas of Spend Evaluated
Traditional, Digital & Social Media; In-store;
E-commerceE-Commerce
Areas of ConsumerJourney Evaluated
Awareness, Consideration/ Engagement, Conversion Conversion
Halo to Total Business Yes No
Endorsed by Google & Facebook Yes No
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Conclusion on Marketing Mix› Marketing Mix Modeling is a standard method for measuring overall marketing
effectiveness and endorsed by Google and Facebook
› Multi-stage modeling allows us to measure all parts of the consumer decision
journey and have a good integration of ecommerce investments:
• Having an un-siloed measure: same ROI scale for online & offline tactics
• Understanding impact of digital & social media levers at each step of the
consumer decision journey
• Measuring the Online to store effect: how e-commerce investments are
impacting B&M directly and indirectly through halo and cross channel effects