the marketing metrics that actually matter featuring senior forrester analyst, tina moffett

Featuring Tina Moffett, Senior Analyst, ForresterWith Kelly Eng, Senior Product Marketing Manager, AdRoll

Starting Shortly #clicktomaniac @adroll

Adopt Advanced Marketing Measurement Approaches To Connect With CustomersTina Moffett, Senior Analyst

© 2015 Forrester Research, Inc. Reproduction Prohibited 4

Agenda

› Consumer and Marketing Trends› Advanced Measurement

Approaches› Critical Steps For Success


Agenda




Connected bodies

Connected cars

Connected doughnuts?

The world around us has changed . . .


. . . and mobile accelerated that shift

Source: Forrester’s US Mobile Mind Shift Online Survey, Q3 2013; Forrester Research World Mobile And Smartphone Adoption Forecast, 2014 To 2019 (Global); and Forrester Research World Tablet Adoption Forecast, 2013 To 2018 (Global)


The age of the customer

A 20-year business cycle in which the most successful enterprises will

reinvent themselves to systematically understand and serve increasingly

powerful customers


In the age of the customer, individuals are always-addressable…

61% of online adults are “always addressable” – using at least 3 internet connected devices from multiple different locations, multiple times a day.


B2C marketing budgets have increased in 2015…..

Source: 2015 The Year Of The Big Digital Shift


….so, marketing executives are investing heavily in measurement and analytics

Source: 2015 The Year Of The Big Digital Shift


Yet marketers have their challenges

Source: Forrester’s BT Marketing Survey, Q3 2015

Marketers struggle to manage data, react quickly

to changing customer behaviors, and measure

results


Firms that are analytic leaders are confident in their measurement, insights, and metrics

Source: The State of Customer Analytics: Most Firms Lack Sophistication


The spotlight is on measurement and insights to prove the value of marketing


Agenda




Customers are influenced by many sources, challenging traditional measurement approaches


Different measurement approaches ranges from simple to sophisticated

› Measurement approaches vary, depending on objective

› Each approach provides value, given a marketers maturity


Marketing mix modeling estimates, optimizes, and predicts the impact marketing has on the business

Measures, analyzes and optimizes marketing plans

Gives CMOs a planning roadmap

Measures overall marketing’s impact on business objectives

Cannot provide insights on tactical marketing or media performance


Advanced attribution reassigns value to tactical marketing initiatives

Accurately measures and optimizes marketing activity at the tactical level

Provides marketing performance metrics reflective of the customer journey

Provides marketing performance metrics reflective of the customer journey

Fails to incorporate other critical data points


Ad viewabilty challenges attribution measurement

› Non-viewable ads must be considered in advanced attribution models.


The future of measurement is unified marketing impact anlatyics

› Uses multiple methodologies---like attribution and marketing mix modeling—together

› Considers non-marketing effects that influence business results

› Connects data across different platforms

› Keeps models in tune with the current customer environment.


Agenda

›Consumer and Marketing Trends

›Advanced Measurement Approaches

›Critical Steps For Success


Measurement is a journey, not a destination

› Assess your measurement capabilities.› Take stock of your data—identify connection

points between channels, data quality issues, and sourcing.

› Go beyond the click and measure marketing impact on ROMI and Customer Value.

› Get support from customer insights, analytics, and marketing counterparts.

Attribution is still a challenge

Scott Racette

Is this final copy?

Kelly Eng

hey, no, i'm going to edit this tonight

Mary Shirley

Call it 'viewthrough conversions' and then show that its abbreviated as 'VTC'

Attribution is still a challenge“Last click is dead”…is dead.

We know last click is wrong, but what’s right will be different for each marketer.

We know post-click is incorrect

8% users account for 85% of clicks

Post-click-only doesn’t make sense as a KPI.

It only tells you about a small subsection of your audience.

USERS

8%

85%

CLICKS

The largest firms agree blended is better

Google HomeAway Case Study

But View through Conversions still scare marketers

What if the ad wasn’t

seen?

View-through conversions aren’t real

View-through conversions are

over-counted

We’ve always done it this way

My boss only cares about clicks

VTCs don’t fit into our current

attribution model

Valuing Views Intelligently• Use data to lead

decisions on how to value a view-through conversion

• AdRoll’s data shows difference in buying behavior by vertical

• Use buy cycle to inform model

Two approaches to valuing a view• Percentage

•Count 15% of VTCs for 30 days

• Lookback window• Count 100% of VTCs for 1 day

Using Percentage Weights for Views

Assumes x% are incremental over a longer time period.

Can use vertical benchmarks or an A/B test to calculate

Sales without retargeting

Sales with retargeting

% lift

Using shortened lookback windows• Set a shorter window, depending on

buyer behavior

• Each industry has trends and best practices

• Important to use as a starting point then validate

$

Attribution is complicatedBut we’re learning more all the timeUse better attribution to better understand campaign’s impact on your bottom line

Test, Validate, IterateValidate model by tying back to actual sales data

Don’t set it and forget it.

Make sure your marketing numbers align with your sales numbers.

Adjust your conversion model as you learn more. 1 2 3

Campaign

launched

Campaign

optimized

Campaign ended

There is no one attribution model to rule them all

Building the right attribution model

Invest in smart modelA smarter blended

model will return on the time invested

Let data leadIterate on model as you

learn more about customer behavior

ValidateVerify by looking at actual conversion

outcomes

ACME

THANK YOU!

@vmoffett@boomereng

#clicktomaniac @adroll

[email protected]@adroll.com

the marketing metrics that actually matter featuring senior forrester analyst, tina moffett

Data & Analytics