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

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

  1. 1. Managing Your Marketing Dollars:Cost-Effective Ways to Measure Your Spend and ROI July 28, 2011 Sponsored by:
  2. 2. OUR SPONSOR
  3. 3. JACK NEFFEditor-at-LargeAdvertising Age
  4. 4. HOUSEKEEPING Submit Questions
  5. 5. HOUSEKEEPING Download Slides
  6. 6. TWEET #AAWEB
  7. 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. 8. OUR PANELRex BriggsCEOMarketing EvolutionMary O’ConnellDirector, Global Digital Marketing and Public RelationsClorox Co.Monique DuquetteSr. Applications ConsultantAprimo
  9. 9. REX BRIGGSCEOMarketing Evolution
  10. 10. Telmar Matterhorn ROI (TMR)How the connection between Marketing ROI data and software will change marketing planning Rex Briggs, CEO Marketing Evolution rex@marketingevolution.com
  11. 11. What is a SIRF? And why does it matter? Spend-to-Impact Response FunctionImpact Spend
  12. 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 Business Review 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. 13. Layering Media To Maximize ROI & Revenue Case Example: CPG Marketer Established Brand, seasonal purchase pattern, message designed to increase purchase intent Online TV (Trough months)* TV (in-season) Social Search
  14. 14. Telmar Matterhorn ROI (TMR)The new syndicated ROI media planning solution, blending the core competencies of Marketing Evolution & Telmar.• For years, Telmar has • ME’s ROI experts have provided customized ROI delivered 100s of cross-media software & service solutions ROMO engagements around the world• Combines Reach/ Frequency to optimize ROI using a multi- • ROMO benchmark data media planning interface provides media impact across verticals, targets, campaign objectives and situations
  15. 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 Business Review 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. 16. Different brands in different categories face differentchallenges to growth… …therefore need different optimizationsTMR Accounts for Different Categories & Objectives – Awareness – Positive Brand Perceptions – Purchase Intent – Advocacy – Sales
  17. 17. Old vs. New Model of Value Creation:TMR accounts for BOTH.Mass Media Model: Social Media Model: Each interaction is anB2C 1000 impression = $10 C2C impression $10 CPM = $0.50 CPI Influenced to interact with brand. Pass Some pass along. along continues Pass Along No brand visit, but positively influenced. Some pass along.
  18. 18. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaign situation & marketer’s goals + Specific Media Placements “Impact curves” of which placements deliver more value ‘Impact Based’ + Targets + Costs Recommendation
  19. 19. TMR Accounts for Different Marketing Objectives New Brand Established Brand Upper-funnel objectives Lower-funnel objectives New Brand Established Brand New Brand challenge on High awareness and the other hand focuses on consideration leads to familiarity 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. 20. Based on Benchmarks of Impact Curves Each media channel has a different value, depending on funnel objectives Customer Purchase Funnel Online & Campaign Impact Magazine New Brand / P25-54Brand Established Radio Network TVUnit sales up X% through impact on lower funnel metrics P25-54 Of Ad Exposure Each point represents actual tracking responses from hundreds of ROMO client campaign studies
  21. 21. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaign situation & marketer’s goals + Specific Media Placements “Impact curves” of which placements deliver more value ‘Impact Based’ + Targets + Costs Recommendation
  22. 22. Scenario Examples Changing The Objective Changes the OptimizationAwareness: M25-54 Purchase Intent: M25-54 Magazine Magazine Digital Display Digital Display Cinema Cinema Syndication Syndication Network TV Network TV Cable TV Cable TV Changing objective to intent from awareness shows a noticeable shift from Network TV to Digital Display
  23. 23. Scenario Examples Changing the Target Audience Changes OptimizationAwareness: M25-54 Awareness: W25-54 Newspapers Magazine Magazine Digital Display Digital Display Cinema Cinema Syndication Syndication Network TV Network TV Cable TV Cable TV While overall changes aren’t drastic………….
  24. 24. More Granularity = Better ROI M25-54 W25-54Digital (most to least $) Digital (most to least $)• Search Engines • Search Engines•Weather •Weather•Sports •E-mail•E-mail •Social•Social •EntertainmentNetwork TV (most to least $) Network TV (most to least $)•Early News •Early Morning•Early Morning •Daytime•Sunday Morning •Early News•Late Night •Sunday Morning•Sunday Night Football •Late NightMagazines (most to least $) Magazines (most to least $)•Men •Women•Fishing Hunting •General Editorial•Motorcycling •Health•Automotive •Epicurean•Video Games
  25. 25. What is `Basecamp’ vs ‘Summit’?Swap in your own impactdata, utilize customized cutsfrom ME’s 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. 26. Telmar Matterhorn ROI (TMR)• A revolutionary new budget planning tool…• Based on billions of dollars in marketing spending 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. 27. MARY O’CONNELLDirector, Global Digital Marketing andPublic RelationsClorox Co.
  28. 28. Measuring Return on Objectives Mary O’Connell Director l Digital Marketing l The Clorox Company July 28, 2011
  29. 29. “80 percent of successis showing up.” -Woody Allen
  30. 30. Turning up the volume For most of us, current measurement models don’t capture ever increasing digital executions in their current state Each driver has a coefficient that Base Price defines the direction and magnitude of its effect on TV volume. Distribution Radio Trend Print TPR PR Online Banner* Feature Only Brand Volume Display Only Streaming Video Feature&Display Search FSI Website Competition Facebook/Twitter Seasonality CRM-emails
  31. 31. It’s a moving target•Mobile, mobile everywhere•Partial attention syndrome•Immediacy and high alert•Customization•Hyper-targeting
  32. 32. The journey to real-time marketing Success: Digital analytics for real-time marketing and Digital Analytics for ROI measurement for growth and demand creation competitive advantage It’s as easy as: 1. Agree on objectives 2. Measure 3. Iterate Starting Point
  33. 33. The goal: 360 measurement Most current models Digital Engagement Ecosystem Insights: Strategic feedback for real-time marketing Digital Strategies & Innovation & Digital Execution Tactics Business Strategies Execution Power of Digital Early indictors Semi-annually or annually Behavioral KPIs and Engagement Score Measurement Attitudinal Measurement Expand scope of Financial Financial ROI and Efficiencies Financial Measurement Measurement Measurement Concluding indictor Spend/Tactic Optimization Spend/Tactic Optimization and Forecasting and Forecasting Real-time marketing
  34. 34. Creating an engagement model: It starts with a game plan ------------------------------------------------------------- All of digital is a learning lab. Treat it that way. Rather than just grabbing for the “If I do Y, latest shiny object, then Z will test your way in. happen…” You’ll accelerate your learning. “I wonder what would happen if….” Set hypotheses l Map to growth priorities l Prioritize l Pre-commit to next steps 1 2 3 3 3 4
  35. 35. The case for clear KPIs: Return on Objectives Agree on universal KPIs for each tactic, typically 1 volume/transactional metrics such as friends, followers, sentiment, posts, ratings 2 Then set engagement metrics for the same tactics. If fans are your universal KPI for Facebook, then set interactions per fan as an engagement metric.
  36. 36. The engagement model : A bridge to financials (Social media example) ------------------------------------------------------------------------------------------------------- ----- Financial Transactional Outcomes Metrics •Sales Friends •Profits Followers Sentiment Posts ----------------------------------------------------------------------------------- Ratings ---------- ---------- Financial Behavioral Attitudinal Transactional Outcomes Objectives Objectives Metrics •Sales •Behavioral metrics •Attitudinal metrics •Friends •Profits •Qualified leads •Perceptions •Followers •Engagement •Affinity •Sentiment indicators •Likelihood to •Posts recommend •RatingsSource: Corporate Executive Board
  37. 37. Multitude of metrics Multitude of metrics Impressions Pageviews/Video Views Frequency Reach DataCore PR Bounce Rate Click-rate agencies YouTube Vindico Twitter Emails Sent Facebook Google Analytics DoubleClick WebTrends Database Clicks Dozens of Data Sources Visits Google AdWords ePrize Opt-Ins Yahoo! Search Responsys Open rate Individual Publishers MSN Ad Center Coupons Inc. Listening Active Users Codes Entered Conversion Rate
  38. 38. MONIQUE DUQUETTESr. Applications ConsultantAprimo
  39. 39. Managing Your Marketing Dollars:Cost-Effective ways to Measure Your Spendand ROIMonique Duquette, Aprimo Copyright © 2011 by Teradata Corporation
  40. 40. There is a Revolution in Marketing Copyright © 2011 by Teradata Corporation
  41. 41. ROI, Channel Integration Plagues CMOs What is Most Broken in Marketing Today? 37% 27% 15% 10% 10% Too many Perceived Lack of Channel Correlating silos lack of value marketing consistency marketing from marketing channel in messaging to revenue integration CMO Survey/Argyle Executive Forum Copyright © 2011 by Teradata Corporation
  42. 42. Current State – Manual. Disconnected. Inefficient.Budgeting & Tracking Campaign Proposals Workflow & Project Mgmt Copyright © 2011 by Teradata Corporation
  43. 43. Multiple Solutions Inhibit Marketing Effectiveness • Low value realization • Data translation issues • Lack of usability and integration • Difficult to manage multiple licenses, interfaces, data • Lack of automated prospect engagement 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. 44. Future State – Evaluate. Collaborate. Act Category/ Social Product Brand Incentives Media Interest InformationBetter 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 delivered more frequently • Increases average purchase price • Store/product/brand recommendations Copyright © 2011 by Teradata Corporation
  45. 45. Understanding ROI Copyright © 2011 by Teradata Corporation
  46. 46. ROI - How do I get there? + Ingredients Tools/Appliances • Marketing Spend • Strategic Alignment • Sales/Revenue Data • Operational • Response/External Efficiency Information • Cross-brand Coordination Copyright © 2011 by Teradata Corporation
  47. 47. Aprimo Integrated Marketing Management Copyright © 2011 by Teradata Corporation
  48. 48. Opportunities — Channels, Collaboration, Performance  Increase marketing directly with consumers CHANNELS1 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 processes PERFORMANCE  Gain visibility to marketing campaigns being Improving Marketing executed3 Performance & Accountability  Adjust marketing spend based on performance  Streamline marketing spend Copyright © 2011 by Teradata Corporation
  49. 49. THANK YOU! Q&A sponsored by:
  50. 50. THANK YOU!

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