Peo presentation - UM Paris - Dataluxe [English]

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Recently, the three letters PEO (Paid Earned Owned) have joined the buzz words bandwagon as much as they became the cornerstone of any communication strategy. While many people try to understand how Paid Earned and Owned can interact, only a few have really managed to accurately quantify these interactions.

As Brand Content and Social media communications are increasingly important, major brands seize these opportunity to better engage with their audience without losing their legacy, their codes, and their values. But what is the real impact of these actions?

Today, UM, through its department dedicated to the digital strategies of the luxury sector, Dataluxe, partner with Mediabrands Analytics, the entity dedicated to econometric modelling.

Together, they give you a better understanding of the synergies between Paid (Media investments) Earned (Buzz Online) and Owned (Web visits) for the French luxury industry.

9 luxury and fashion brands were analyzed. 18 econometric models were produced. They take into account 936 weeks, more than 500 million euros of media investment and nearly 110,000 mentions to brands on blogs, news, forums and social networks.

Through this modeling we stress the importance of Paid Media in the evolution of Buzz and Interest generated around brands, but also the strength that can represent an optimal interaction between the three variables. The models demonstrate the opportunity of creating a virtuous circle of Paid, Earned and Owned. An ecosystem of synergies can be leveraged for the benefit of engagement, be it Word of Mouth of Website Traffic.
These synergies do not necessarily require the biggest budgets. This is one of the main conclusions of the study. Indeed, certain brands with low media investments have found the right combination to maximize the impact of their digital actions and make people talk about them.

This brand engagement, UM and DataLuxe help you understand how it works and carry out the actions that triggers it.

Our methodology will meet your digital issues, through models of quality and meaningful benchmarks for your business.

Because we know what works.

Curiosity works!

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Peo presentation - UM Paris - Dataluxe [English]

  1. 1. The 1st PEO (Paid-Earned-Owned) Digital Research on Luxury sector 23 may 2012
  2. 2. Introduction Understand the full territory of expressions of the luxury brands today…. to be more efficient tomorrow« The 1st analyze ever realized on the luxury market able to quantify impact and synergies between media investment, e-reputation and Online Buzz » Stéphane Bodier, President of Mediabrands France
  3. 3. Agenda Econometric Data PEO Model Results
  4. 4. Econometrics
  5. 5. Econometrics A reliable science Definition Applied to the Media sector, the goal of econometrics is to establish and measure correlations between different variables (media investment, buzz, temperature, competition, etc…) and sales (or web visits, awareness, brand search volume, etc…). The recurrence of the observed effect will allow us to be accurate in quantifying them, hence the importance of having reliable historic data. Our expertise and our proprietary tools allow us to understand and analyze millions of data in a record time
  6. 6. Econometrics A reliable science Example of uses Media contribution on Web Visits 8% Web VisitsWeb visits obtainedthrough our model 20% Media 15% investments
  7. 7. Evolution Performance at the center of the process Evolution of process through time Frequently used on the past 10 years in the Media sector, econometrics was then an extremely complex and painful process, several months were needed to obtain strong conclusions that were most of the time already obsolete. Today, thanks to technology evolutions, we are able to use many efficient tools to realize our econometric models with a higher quality and a significantly shorter period of time. Econometric has finally become an indispensable process for all clients to: - Isolate and quantify marketing activities effect (and other none media factors) - Optimize On and Off marketing strategies - Maximize performances
  8. 8. Data
  9. 9. 3 key variables A full vision on communication strategies of luxury brands PAID (MEDIA) EARNED (BUZZ) OWNED (INTEREST) Place of communication in an Assets owned by the brand that give Endorsement of a brand environment that belongs to direct contact with consumers by a third-party a third-party (generate their interest) Any Media investment On and Off, TV, Buzz Online on news web sites, blogs, Web site visits, Youtube channel , Press, OOH, Cinema, Catch Up, or forums, social networks, Twitter, Facebook page, Apps, Point of sales Affiliation, Display, mailing, etc… Facebook or Pinterest, etc… visits, Brand search volume, etc…
  10. 10. 3 key variables A strategic analyze through hard-data, real and accessible PAID (MEDIA) EARNED (BUZZ) OWNED (INTEREST) With « #Burberry Beijing », the British brand really created a state of the art event, we LIKE!!! All Media Off and Display For the ON part Mentions on Blogs, News and Forums Brand Search volume
  11. 11. The purchase funnel Google Search: representative for brand consideration External factors MIX MARKETING (Media+ Other) Econometric process is able to integrate every stage of the purchase funnel separately or simultaneously, BUZZ on the behalf of the client needs.AWARNESS CONSIDERATION INTENTION BUY Quotation requests Google Search Awarness Online subscriptions Sales Website visits Website visits
  12. 12. The purchase funnel Google Search: representative for brand consideration External factors MIX MARKETING (Media+ Other) Econometric process is able to integrate every stage of the purchase funnel separately or simultaneously, BUZZ on the behalf of the client needs.AWARNESS CONSIDERATION INTENTION BUY In this study, we will focus on Consideration and its interaction with Paid (media) and Earned (Buzz) Quotation requests Google Search Awarness Online subscriptions Sales Website visits Website visits
  13. 13. The purchase funnel Google Search: representative for brand considerationWhy Google Search instead of Web visits? - Real and reliable data, from a single source (comparisons are possible) - Minimum of 2 years of weekly data available for every brands - Brand search request (not generics one) most of the time redirect the internet user to the brand web site (so very similar to website visits) - Brand search is not influenced by Paid Search, it reflects the real interest from the internet user for the brand he’s looking forAWARNESS CONSIDERATION INTENTION BUY Quotation requests Google Search Awarness Online subscriptions Sales Website visits Website visits
  14. 14. Key information A powerful analyze integrating many data Two years of data, represents a total of 936 weeks 9 Brands of the luxury sector analyzed in France and fashion 505.000.000 € More than 110.000 Mentions of the Of Media investments brands on Blogs, Forums and News in France ….to realize 18 econometric high quality models
  15. 15. The brands 9 actors of luxury and fashion sector in France
  16. 16. Media PAID PAID is in strong progressionRépartition des investissements par Media en 2011 +11,9% of progression from 2011 vs 2010 thanks Radio Display 12% <1% to TV, Press and Display TV TV (+20%), Press (+11%) and 37% Display (+7%), Media with a strong progression Press 46% OOH 5% Jan-2010 Jan-2011 Media investment of the 9 brands analyzed from Jan. 2010 to Déc. 2011 with
  17. 17. Media by sector PAID Perfumes, the category with highest media investment Media investment by sector Progression of Media +250% invest. in 2010-2011 investment by sector communication 2010-2011 about website Autres secteurs 4,6% 5,8% Autres secteurs 42,9% Perfume is the Parfumerie sector with the higher Parfumerie 1,5% media investment 62,1% 56,0% through the 9 brands Cosmétique Cosmétique 35,8% analyzed. Marroquinerie Cosmetic and Marroquinerie -0,9% 15,1% Jewelry/watches Joaillerie/Montre 12,5% sectors are having 6,7% Joaillerie/Montre 52,4% the strongest 7,6% 6,6% 8,9% progression (and Couture/Habillement 6,7% 7,5% Couture/Habillement 26,4% website development) 2010 2011
  18. 18. Visits OWNED OWNED is following the trend With a progression of 18% in 2011 vs 2010, it’s obviously easy to connect the evolution with increase of media investment…it’s common sense. Jan-2010 Jan-2011Average of brand search volume of the 9 brands analyzed from Jan. 2010 to Déc. 2011 with
  19. 19. Buzz EARNED Buzz is even more impacted Mentions repartition by Buzz type in 2011 With more than 45% of mentions increase in 2011 vs 2010 thanks to News and Forums, it is more obvious that the 3 variables are correlated to each other. BLOGS 17% NEWS 45% News (+100%), FORUM Forums (35%), the 38% strongest progressions Jan-2010 Jan-2011Total Mention of the 9 brands analyzed in Jan. 2010 to Dec. 2011 with
  20. 20. Twitter EARNED with insufficient history Mentions repartition by Buzz type in 2011 including Twitter mentions Twitter represents 21% of the brand total mentions on the web. Still it has a to short historical data available to be able to integrate it in the analyze BUZZ TWITTER Jan-2010 Jan-2011Total Mention of the 9 brands analyzed in Jan. 2010 to Dec. 2011 with
  21. 21. Facebook EARNED not enough historical data and complex to integrate FB fan talks Ratio FB Fans* Language about* Fan/Share Facebook, difficult media to integrate Burberry 10 943 371 215 410 51 Eng Dior 6 911 902 120 866 57 Eng Which variable should we use? Number of Fans is not always representative of brand interest (can Chanel 5 829 839 133 411 44 Eng buy them), so does the sharing/like variable Hermes 512 865 8 660 59 Fr No historical data available Longchamp 464 531 7 113 65 Fr Zadig & Voltaire 232 522 4 551 51 Fr Comparisons are difficult (global vs local pages) Lancôme Expert 226 377 703 322 Fr Lancôme 223 695 5 897 38 Fr Could be integrated if clients share The Kooples 148 266 2 625 56 Fr data, but comparisons with other Eric Bompard 18 050 56 322 Fr brands then impossible*Facebook March 2012
  22. 22. Trends PEO variables: conclusion A sector investing more and more in Media Evident correlation between the progression of media investment, increase of brand request and buzz Need to go further into the correlation analyze through a specific methodology to quantify precisely all the synergies: Econometric!
  23. 23. PEO Model
  24. 24. PEO Model Questions answered How to optimize my Does my media activities Do I reach optimal Finally, what should be my marketing activities to have any direct effect on synergy between Buzz and next brand strategy to bemaximize brand interest? word of mouth? Website visits? more efficient?
  25. 25. PEO Model Two complementary modeling for a brand Model I want to trigger traffic to my website Model I want people to talk about my brandSources photos: www.Flickr.com
  26. 26. PEO Model Variables in detailsModèle Owned PAID EARNED = TV OOH Radio Display Press Cinema + News Blogs ForumsModèle Earned PAID OWNED TV Display OOH Press Radio Cinema + Search =
  27. 27. PEO Model Quality everywhere Predicted results by the model vs real data (Brand A) Our 18 models allow us to explain 80%* of the requests and mentions weekly variance for every of the 9 brands Actuel Modèle Ownedt = β0 + � βi × Ti (xit ) + � βj × Tj (xjt ) Formula of a multiple régression model: i∈Inc j∈Base i = Paid, Earned j = Base (Seasonality + Other factors)*Average of Adjusted R2
  28. 28. PEO Model The PEO Methodology High quality models, reliable, transparent and accessible to all Search and Buzz both integrated Hard data available, real compartmental data Possibility to compare results through different brands of different sectors, even internationally An essential support to develop a digital strategy to be more efficient in your day to day decision making process
  29. 29. Results
  30. 30. Brands with strongest synergies
  31. 31. OMG, jaurais pas du regarder la pub qui précède la vidéo en entier, maintenant il mefaut un ROUGE IN LOVE de LancômeKate Winslet, qui a réalisé pour Lancôme une collection capsule pour sa fondationGolden Hat, met en lumière un look ultraglamour, au raffinement indémodable.Jai pas résisté, jai maintenant le nouveau teint miracle de Lancôme en mapossession!!L’expérience du maquillage virtuel avec Lancôme: Cool!
  32. 32. Art of the Trench Burberry Acoustic Le premier « social network » lancé par une marque Promotion d’artistes (Juin 2010) Tweetwalk Piccadilly Circus GiftsDéfilé sur Twitter (Sept. 2011) Retransmission du défilé (Sept. 2011) Echantillons sur Facebook (Sept. 2011)
  33. 33. Observation#1 Media strategy of luxury brands generates stronger digital benefits than other sectors Campaigns have higher impact on Buzz and Search
  34. 34. Impact of PAID Luxury brands, more efficient when generating buzz and web visits Luxe  Strong simultaneous impact on Earned and Owned 20 % PAID 22 %  On 100 brand requests on Google, 22 have been stimulated before by Media activity.  On 100 brand mentions on the web, 20 have been EARNED OWNED influenced by Media exposition before. Source: Megastar, Mediabrands Analytics
  35. 35. Impact of PAID Luxury brands, efficient on EARNED Automobile TV constructors Luxe 20 % PAID 22 % Similarities  Strong media activity EARNED OWNED  Powerful launches, highly present on Media  High cost of the products promoted  Needs to discuss about it before going on the brand website Differences  Low impact of the Media investments on website visits for the other two sectorsSource: Megastar, de Mediabrands Analytics
  36. 36. Impact of PAID Luxury brands, efficient on OWNED two Telecomunication operators Luxe 20 % PAID 22 % Similarities EARNED OWNED • Strong seasonality (fashion shows, new phone launches and offers, etc..) • High buying frequency • Interest to inform at the source, directly from the client website Differences • Low impact on Buzz when Telecom operators communicate in MediaSource: Megastar, de Mediabrands Analytics
  37. 37. Impact of PAID Conclusions – Luxury PAID Media have a simultaneous impact on Earned and Owned Automobile Téléviseurs Opérateurs Téléphoniques Luxe 20 % PAID 22 % Conclusions EARNED OWNED Media of Luxury sector is generating simultaneously strong effect on digital activities The digital pathway realized by the clients is different by sector for many reasons, that is why it is important to quantify and compare it, to better understand them!Source: Megastar, de Mediabrands Analytics
  38. 38. Observation#2 > It is not because you have a smaller media budget that you’ll be less efficient It is possible to strongly impact buzz or web visits thanks to smart media investment, content, creativity or support.
  39. 39. Impact du PAID David and Goliath, possible story for brands of the luxury sector Best impacts of Media on Owned Average weekly media investment Dior Chanel Lancôme Hermes Burberry Longchamp Best impacts of Media on Earned Zadig & Voltaire Eric Bompard The Kooples 0 500 1000 1500 2000*Average media investment calculated on the full period 2010-2011
  40. 40. Obvservation #3 Luxury Brands, a more important synergy between Earned and Owned, and more balanced than other sectors Marketers Graal: the more synergies are important and balanced, the more a virtuous cycle is created Clients engagement is the force that makes the brand live by itself on the web
  41. 41. Synergies EARNED - OWNED Strong synergies between Owned et Earned Luxe  Web visits generally generate a lot of discussions on the web PAID  On the other side, discussions (or web news) invite a bit less the internet user to go and visit the website of 18 % the brand EARNED OWNED 37 %Source: Megastar, de Mediabrands Analytics
  42. 42. Synergies EARNED - OWNED Luxury brands, more efficient and balanced between Owned and Earned Luxe  Interactions between Buzz and Website visits are not always that strong in every sector. PAID  Luxury brands is more efficient to attract people to their 18 % website from the buzz. EARNED OWNED  Luxury brands are closer to create the virtuous cycle, 37 % fluent and balanced.Source: Megastar, de Mediabrands Analytics
  43. 43. Observation #4 Luxury brands can be separated into 3 segments depending on their Owned/Earned synergy levels For each segment, we will be able to define actions to improve brand strategy and maximize performance.
  44. 44. Synergies EARNED - OWNED The 3 segments Drive to Earned Drive to Owned Earned = Owned  Innovative website and  Discussions invite client to go  They created the virtuous cycle content… and see the website thanks to an innovative  …that makes people talk  Create the need to search more marketing strategy about it information about the brand  Internet users travel between  …that make you want to buzz discussion and websites, discuss, ask and interact with interact everywhere with it others  Once they come to the website, the don’t always go back and  Capacity to generate brand  Not always manage to make the talk about the brand on the engagement, affective capital link to bring influencers to their blogs, news or forums with consumers. websites againSource: Megastar, de Mediabrands Analytics
  45. 45. Synergies EARNED - OWNED The brands inside each segment Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to, maybe because of their strategy or objectives Synergies Owned-Earned by brandOwned Drive to Earned Earned Drive to Owned
  46. 46. Synergies EARNED - OWNED The brands inside each segment Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to, maybe because of their strategy or objectives Synergies Owned-Earned by brand Drive to EarnedOwned Drive to Earned Earned Drive to Owned
  47. 47. Synergies EARNED - OWNED The brands inside each segment Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to, maybe because of their strategy or objectives Synergies Owned-Earned by brand Drive to EarnedOwned Drive to Earned Drive to Owned Earned Drive to Owned
  48. 48. Synergies EARNED - OWNED The brands inside each segment Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to, maybe because of their strategy or objectives Synergies Owned-Earned by brand Drive to EarnedOwned Drive to Earned Earned = Owned Drive to Owned Earned Drive to Owned
  49. 49. Synergies EARNED - OWNED The brands inside each segment Drive to Earned Drive to Owned Earned = OwnedSource: Megastar, de Mediabrands Analytics
  50. 50. Synergies EARNED - OWNED Some clues of the recomandations we could have by segment Drive to Earned Drive to Owned Earned = Owned Go to find internet users where Develop innovative platform, Keep the synergies growing : they are, re-orient them to your quality content, that will make  Go deeper in the marketing website: generate buzz: mix modeling to optimize  Display (Adexchange)  Mini websites media investment  Facebook Ads  Youtube chanel  Keep an eye on new digital  SEM (Paid Search)  Social Media Management trends to stay on top  PR Bloggers  Brand content  Have a strong reporting to follow your trends day by daySource: Megastar, de Mediabrands Analytics
  51. 51. Synergies EARNED - OWNED Best synergies between Earned-Owned This time, the most famous brands are on top, they managed to create the virtuous cycle, powerful and balanced, that make their clients engaged with their brand*Sum of the 2 rankings of synergies Owned on Earned and Earned on Owned, and ranking of the most balanced synergies brands
  52. 52. Our proposal
  53. 53. Understand Luxury brands and PEO Luxe With our PEO model on luxury brands, we wanted to understand 20% PAID 22% how brands manage to optimize their engagement with public audience through Paid, Earned and Owned, to create a privileged relation with them. 18% Through that study, we can observe different kinds of engagement, EARNED OWNED focused on Earned or Owned, or both of them. 37%Source: Megastar, de Mediabrands Analytics
  54. 54. Pilote Luxury brands and PEO The Dataluxe offer, is to work with you through a similar approach of the one presented today to understand what are the synergies between your three key pillars of media development, PEO Pilote PAID We could eventually go further into the analyze developing deeper models with your own data and make specific conclusions by media or buzz variables. Listen We could use our proprietary tools and expertise to optimize your actions on all or some part of your brands strategy. EARNED OWNED Piloting effectiveness off your Paid activity Listening to your universe, keeping an eye on your Earned Media Transform Transforming interest of your audience into actions on your owned media With Dataluxe, we offer the possibility to fully understand what’s working. because Curiosity Works.
  55. 55. We know what works
  56. 56. Contact

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