Managing Your Marketing $S Cost Effective Ways To Measure Your Spend & Roi Aprimo

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  • 1. Managing Your Marketing Dollars:Cost-Effective Ways to Measure Your Spend and ROIJuly 28, 2011Sponsored by:

2. OUR SPONSOR 3. JACK NEFFEditor-at-LargeAdvertising Age 4. HOUSEKEEPING Submit Questions 5. HOUSEKEEPING Download Slides 6. TWEET#AAWEB 7. For CPG companies, a major challenge isgaining visibility into marketing spend thatis spread across various categories andbrands. As a result, marketing processescan become inefficient, bogged down bythis lack of insight. 8. OUR PANELRex BriggsCEOMarketing EvolutionMary OConnellDirector, Global Digital Marketing and Public RelationsClorox Co.Monique DuquetteSr. Applications ConsultantAprimo 9. REX BRIGGSCEOMarketing Evolution 10. Telmar Matterhorn ROI (TMR)How the connection between Marketing ROI data andsoftware will change marketing planning Rex Briggs, CEO Marketing Evolutionrex@marketingevolution.com 11. What is a SIRF? And why does it matter? Spend-to-Impact Response FunctionImpactSpend 12. The Most Broadly Validated Solution for ROI Measurement: The Best Practice Standard 1. Leading independent marketing & research associations The ARF (Advertising Research Foundation) in coordination with - ANA (Association of National Advertisers) - AAAA (American Association of Advertising Agencies) 2. Leading independent academics (partial list) Steven Levitt, award winning economist, University of Chicago,Author, Freakonomics John List, foremost field economist, University of Chicago Kirthi Kalayanam, digital and retail measurement leader,University of Santa Clara, author of several Harvard BusinessReview articles 3. Media companies & trade associations IAB (Interactive Advertising Bureau) NAA (Newspaper Association of America)Partial list of Marketers: Magazine (Time Inc, Conde Nast, Meredith, etc.) TV (Fox, Disney, MTV Networks, etc.) 4. Best practice reviews Corporate Executive Board, (B2C & B2B - US, Europe) Forrester ESOMAR best practices Wiley & Sons, April 07, 60 pages Journal of Advertising Research (Dec 06) 13. Layering Media To Maximize ROI & RevenueCase Example: CPG MarketerEstablished Brand, seasonal purchasepattern, message designed toincrease purchase intentOnlineTV (Trough months)* TV (in-season) Social Search 14. Telmar Matterhorn ROI (TMR)The new syndicated ROI media planning solution, blending the core competencies of Marketing Evolution & Telmar. For years, Telmar has MEs ROI experts haveprovided customized ROIdelivered 100s of cross-mediasoftware & service solutions ROMO engagements around the world Combines Reach/ Frequencyto optimize ROI using a multi- ROMO benchmark datamedia planning interface provides media impact across verticals, targets, campaign objectives and situations 15. The Most Broadly Validated Solution for ROI Measurement: The Best Practice Standard 1. Leading independent marketing & research associations The ARF (Advertising Research Foundation) in coordination with - ANA (Association of National Advertisers) - AAAA (American Association of Advertising Agencies) 2. Leading independent academics (partial list) Steven Levitt, award winning economist, University of Chicago,Author, Freakonomics John List, foremost field economist, University of Chicago Kirthi Kalayanam, digital and retail measurement leader,University of Santa Clara, author of several Harvard BusinessReview articles 3. Media companies & trade associations IAB (Interactive Advertising Bureau) NAA (Newspaper Association of America)Partial list of Marketers: Magazine (Time Inc, Conde Nast, Meredith, etc.) TV (Fox, Disney, MTV Networks, etc.) 4. Best practice reviews Corporate Executive Board, (B2C & B2B - US, Europe) Forrester ESOMAR best practices Wiley & Sons, April 07, 60 pages Journal of Advertising Research (Dec 06) 16. Different brands in different categories face differentchallenges to growththerefore need different optimizationsTMR Accounts for Different Categories & Objectives Awareness Positive Brand Perceptions Purchase Intent Advocacy Sales 17. Old vs. New Model of Value Creation:TMR accounts for BOTH.Mass Media Model:Social Media Model: Each interaction is anB2C1000 impression = $10 C2C impression$10 CPM = $0.50 CPIInfluenced tointeract with brand. PassSome pass along. along continuesPassAlongNo brand visit, butpositively influenced.Some pass along. 18. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaignsituation & marketers goals+ Specific MediaPlacementsImpact curves of which placements deliver more value Impact Based + Targets + Costs Recommendation 19. TMR Accounts for Different MarketingObjectives New BrandEstablished BrandUpper-funnel objectivesLower-funnel objectivesNew Brand EstablishedBrand New Brand challenge onHigh awareness andthe other hand focuses on consideration leads tofamiliarity and looking to maximize sales consideration volumeUnit sales up X% through impact on lower funnel metrics Unit sales up X% through widening of the upper funnel 20. Based on Benchmarks of Impact CurvesEach media channel has a different value, depending on funnel objectives Customer Purchase Funnel Online& Campaign Impact MagazineNew Brand / P25-54Brand Established RadioNetwork TVUnit sales up X% through impact on lower funnel metrics P25-54 Of Ad ExposureEach point represents actual tracking responsesfrom hundreds of ROMO client campaign studies 21. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaignsituation & marketers goals+ Specific MediaPlacementsImpact curves of which placements deliver more value Impact Based + Targets + Costs Recommendation 22. Scenario Examples Changing The Objective Changes the OptimizationAwareness: M25-54Purchase Intent: M25-54 MagazineMagazine Digital Display Digital Display Cinema CinemaSyndication SyndicationNetwork TV Network TV Cable TV Cable TVChanging objective to intent from awareness shows anoticeable shift from Network TV to Digital Display 23. Scenario Examples Changing the Target Audience Changes OptimizationAwareness: M25-54 Awareness: W25-54NewspapersMagazineMagazineDigital Display Digital DisplayCinemaCinemaSyndication SyndicationNetwork TVNetwork TVCable TVCable TV While overall changes arent drastic. 24. More Granularity = Better ROI M25-54W25-54Digital (most to least $)Digital (most to least $) Search Engines Search EnginesWeather WeatherSportsE-mailE-mailSocialSocialEntertainmentNetwork TV (most to least $) Network TV (most to least $)Early NewsEarly MorningEarly Morning DaytimeSunday MorningEarly NewsLate NightSunday MorningSunday Night Football Late NightMagazines (most to least $)Magazines (most to least $)Men WomenFishing Hunting General EditorialMotorcyclingHealthAutomotiveEpicureanVideo Games 25. What is `Basecamp vs Summit?Swap in your own impactdata, utilize customized cutsfrom MEs database and/orgo more granular with medialevers, targets etcOur syndicated offering with100+ levers in 10+ verticals TMR: Software-Based Command Center Flexible planning tool , integrating multiple data feeds to enable alignment & collaboration Marketing, research & agency teams can simulate trade-offs Scenario Planning different budget levels, pricing, etc. 26. Telmar Matterhorn ROI (TMR) A revolutionary new budget planning tool Based on billions of dollars in marketingspending analyzed independently. Build plans on key metrics such as: Awareness, Brand Image Shift,Increasing Demand/Purchase Intent,Sales Conversion, etc. Currently serving the following verticals: Auto, Pharma, Entertainment,CPG (Food, Beverage, Health/Beauty)Restaurant, Retail, etc. Schedule a hands-on demo: Steve Riddle (sriddle@telmar.com) Jason Wertheimer (jason.wertheimer@marketingevolution.com) Rex Briggs (rex@marketingevolution.com) 27. MARY OCONNELLDirector, Global Digital Marketing andPublic RelationsClorox Co. 28. Measuring Return on Objectives Mary OConnell Director l Digital Marketing l The Clorox Company July 28, 2011 29. 80 percent of successis showing up.-Woody Allen 30. Turning up the volumeFor most of us, current measurement models dont capture ever increasing digitalexecutions in their current state Each driver has a coefficient thatBase Pricedefines the direction andmagnitude of its effect on TV volume. Distribution RadioTrendPrintTPRPR Online Banner*Feature Only Brand VolumeDisplay Only Streaming VideoFeature&Display Search FSI Website CompetitionFacebook/Twitter Seasonality CRM-emails 31. Its a moving targetMobile, mobile everywherePartial attention syndromeImmediacy and high alertCustomizationHyper-targeting 32. The journey to real-time marketing Success: Digital analyticsfor real-time marketing andDigital Analytics for ROI measurement for growth anddemand creation competitive advantage Its as easy as: 1. Agree on objectives 2. Measure 3. Iterate Starting Point 33. The goal: 360 measurementMost current modelsDigital Engagement Ecosystem Insights: Strategic feedback for real-time marketingDigital Strategies & Innovation & Digital ExecutionTactics Business StrategiesExecutionPower of Digital Early indictorsSemi-annually or annuallyBehavioral KPIs and Engagement Score Measurement AttitudinalMeasurementExpand scope ofFinancial FinancialROI and EfficienciesFinancial Measurement MeasurementMeasurement Concluding indictorSpend/Tactic OptimizationSpend/Tactic Optimizationand Forecastingand ForecastingReal-time marketing 34. Creating an engagement model: It starts with a game plan-------------------------------------------------------------All of digital is a learning lab. Treat it that way.Rather than justgrabbing for the If I do Y,latest shiny object, then Z willtest your way in. happen Youll accelerateyour learning. I wonder what would happen if.Set hypotheses l Map to growth priorities l Prioritize l Pre-commit to next steps123 33 4 35. The case for clear KPIs: Return on ObjectivesAgree on universal KPIs for each tactic, typically1 volume/transactional metrics such as friends, followers,sentiment, posts, ratings2 Then set engagement metrics for the same tactics. If fans areyour universal KPI for Facebook, then set interactions per fanas an engagement metric. 36. The engagement model : A bridge to financials (Social media example)------------------------------------------------------------------------------------------------------- ----- Financial Transactional OutcomesMetricsSalesFriendsProfitsFollowersSentimentPosts----------------------------------------------------------------------------------- Ratings---------- ---------- FinancialBehavioralAttitudinalTransactional Outcomes ObjectivesObjectives MetricsSalesBehavioral metrics Attitudinal metricsFriendsProfitsQualified leadsPerceptionsFollowersEngagement Affinity SentimentindicatorsLikelihood toPostsrecommendRatingsSource: Corporate Executive Board 37. Multitude of metrics Multitude of metricsImpressionsPageviews/Video ViewsFrequency Reach DataCorePR Bounce RateClick-rate agenciesYouTubeVindicoTwitter Emails SentFacebook Google Analytics DoubleClickWebTrendsDatabase Clicks Dozens of Data SourcesVisitsGoogle AdWordsePrize Opt-InsYahoo! Search Responsys Open rateIndividual Publishers MSN Ad Center Coupons Inc. Listening Active Users Codes Entered Conversion Rate 38. MONIQUE DUQUETTESr. Applications ConsultantAprimo 39. Managing Your Marketing Dollars:Cost-Effective ways to Measure Your Spendand ROIMonique Duquette, Aprimo Copyright 2011 by Teradata Corporation 40. There is a Revolution in Marketing Copyright 2011 by Teradata Corporation 41. ROI, Channel Integration Plagues CMOs What is Most Broken in Marketing Today?37%27% 15%10% 10% Too manyPerceived Lack ofChannel Correlating silos lack of value marketing consistency marketing from marketing channelin messaging to revenue integrationCMO Survey/Argyle Executive Forum Copyright 2011 by Teradata Corporation 42. Current State Manual. Disconnected. Inefficient.Budgeting & TrackingCampaign Proposals Workflow & Project Mgmt Copyright 2011 by Teradata Corporation 43. Multiple Solutions Inhibit Marketing Effectiveness Low value realization Data translation issues Lack of usability and integration Difficult to manage multiplelicenses, interfaces, data Lack of automated prospectengagement across channelsIntegrated marketing automation platformMultiple separate marketing applications Aberdeen Group Best in Class Website Results: 3 Leading TechnologiesThat Work Better as 1 Copyright 2011 by Teradata Corporation 44. Future State Evaluate. Collaborate. ActCategory/ SocialProductBrandIncentives Media InterestInformationBetter Customer Experience More Efficient & Effective Marketing Channel preference/convenience Creates relationships Ability to easily find Product/brand information Drives loyalty & satisfaction Saves on agency costs Relevant & timely promotional incentives Focus on creative, messaging, offers Highly personalized communications deliveredmore frequently Increases average purchase price Store/product/brand recommendationsCopyright 2011 by Teradata Corporation 45. Understanding ROICopyright 2011 by Teradata Corporation 46. ROI - How do I get there?+Ingredients Tools/Appliances Marketing Spend Strategic Alignment Sales/Revenue Data Operational Response/External EfficiencyInformation Cross-brandCoordinationCopyright 2011 by Teradata Corporation 47. Aprimo Integrated Marketing ManagementCopyright 2011 by Teradata Corporation 48. Opportunities Channels, Collaboration, Performance Increase marketing directly with consumersCHANNELS1 Proliferation of New Engagement Channels Expectations for relevancy from consumers Empower field marketers to engage with relevant data COLLABORATION Reduce inefficiencies working with agencies2 Improve Agency and Internal Collaboration Improve processes and interactions with internal teams Manage the campaign execution processesPERFORMANCE Gain visibility to marketing campaigns being Improving Marketing executed3Performance &Accountability Adjust marketing spend based on performance Streamline marketing spend Copyright 2011 by Teradata Corporation 49. THANK YOU!Q&A sponsored by: 50. THANK YOU!