Conversations With Financial Directors about measuring Online Marketing


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Presentation provides an overview of best practices in the measurement of Online Marketing through the use of 1) simple metrics, 2) measuring POI, 3) single tracking and 4) attribution of revenue.

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  • Conversations With Financial Directors about measuring Online Marketing

    1. 1. Conversations with Financial Directors ..about the measurement and accountability of Digital Marketing.
    2. 2. <ul><li>Independent organically funded agency founded in 2003 with offices in New York and London </li></ul><ul><li>In 2007 we generated USD $251 million in revenue for our clients, delivering a profit on investment of 10 (22 ROI) </li></ul><ul><li>Manage online advertising investments across 10 European markets, Australia and North America </li></ul><ul><li>Most efficient UK Digital Marketing Agency in 2006 and 2007 (Revolution Magazine) </li></ul>Who we are Thinking : Returns
    3. 3. <ul><li>Consulting </li></ul><ul><ul><li>Channel Planning & Budgeting </li></ul></ul><ul><ul><li>Pay per Performance Acquisition Strategies </li></ul></ul><ul><ul><li>Measurement and Accountability </li></ul></ul><ul><li>Media </li></ul><ul><ul><li>Strategy, planning, buying, optimisation & analysis </li></ul></ul><ul><ul><li>Behavioural and contextual targeting </li></ul></ul><ul><li>Creative </li></ul><ul><ul><li>Planning, design, concepting and production </li></ul></ul><ul><li>Social Media Marketing </li></ul><ul><ul><li>Measurement & monitoring of consumer sentiment & consumer generated insights </li></ul></ul><ul><li>Email Marketing </li></ul><ul><ul><li>List management, deployment, segmentation and measurement </li></ul></ul>Services we offer What we do
    4. 4. Who we work for The company we keep
    5. 5. <ul><li>“ Are we using the correct business metrics – given our customers interact through so many channels?” </li></ul><ul><li>“ Marketing people tend to differ technical questions to the IT team – I need consensus when it comes to measuring return” </li></ul><ul><li>“ Are we measuring and attributing true incremental revenue from online investments?” </li></ul><ul><li>“ What is the value of hiring a full time data analyst?” </li></ul>Listening to our clients The challenge for Digital Marketing investments
    6. 6. Defining what is important. Questions that need answering
    7. 7. <ul><li>Planning </li></ul><ul><li>What do we know (or believe) they need? </li></ul><ul><li>Engagement </li></ul><ul><li>Where did they come from? </li></ul><ul><li>Are they existing or new visitors/customers? </li></ul><ul><li>What are they doing? </li></ul><ul><li>Why are they leaving? </li></ul><ul><li>Conversion </li></ul><ul><li>What are they buying? </li></ul><ul><li>How long is it taking them to buy? </li></ul><ul><li>Where are they interacting/buying - call centre, online, retail? </li></ul><ul><li>What else could they buy? </li></ul><ul><li>Conversation </li></ul><ul><li>Why should they come back? </li></ul><ul><li>What else can we offer them that is of value? </li></ul><ul><li>How are they influencing peers and potential customers? </li></ul>Single philosophy 12 questions to answer
    8. 8. Measuring Return. Move on from ROI. Thinking POI.
    9. 9. <ul><li>Calculating Return on investment: </li></ul><ul><li>(Revenue – Advertising Cost)/ Advertising Cost </li></ul><ul><ul><li>Advertising Cost </li></ul></ul><ul><ul><ul><li>Media investment </li></ul></ul></ul><ul><ul><ul><li>Creative investment </li></ul></ul></ul><ul><ul><ul><li>Agency management fees </li></ul></ul></ul><ul><ul><ul><li>Trafficking </li></ul></ul></ul><ul><ul><ul><li>Ad serving/measurement fees </li></ul></ul></ul><ul><li>Calculating Profit on Investment </li></ul><ul><li>(Revenue – Business Cost)/Business Cost </li></ul><ul><ul><li>Revenue </li></ul></ul><ul><ul><ul><li>Quality and quantity of revenue </li></ul></ul></ul><ul><ul><li>Business Cost </li></ul></ul><ul><ul><ul><li>Advertising costs </li></ul></ul></ul><ul><ul><ul><li>Fixed operational costs </li></ul></ul></ul><ul><li>British Airways = Net Quality Revenue </li></ul><ul><li>Webliquid travel client = ROI of 4 was break even! </li></ul>From measuring ROI to POI Accountability
    10. 10. Tracking multiple channels. Single tracking; single customer view
    11. 11. <ul><li>Removes double counting of conversions </li></ul><ul><li>Single tracking can be achieved while leveraging best </li></ul><ul><li>of breed tools (paid search bid management tools) </li></ul><ul><li>Use referring IDs or click commands to redirect traffic </li></ul><ul><li>Understand true revenue contribution by channel </li></ul><ul><li>Provides true exposure to conversion data – measure user </li></ul><ul><li>path from engagement to conversion </li></ul>Track the contribution of all sources Every channel has a role to play
    12. 12. Attribution of revenue. Give credit where credit is due
    13. 13. <ul><li>Last click model is the standard, yet inefficient: </li></ul><ul><li>Underestimates the role of other media which influences users on their path to conversion </li></ul><ul><li>Overestimates the ROI from the last click (e.g. brand term paid search) </li></ul><ul><li>Assumes a linear path to conversion </li></ul><ul><li>Exposure to conversion data – determine the customer </li></ul><ul><li>journey to conversion </li></ul><ul><li>Understand impact of post impression conversions </li></ul><ul><li>Attribute a percentage of every booking to each channel </li></ul><ul><li>part of the conversion process </li></ul><ul><li>Webliquid client initial attribution model: </li></ul><ul><li>Brand term conversion driven by 2 other channel interactions; credit only 50% of conversion to brand term </li></ul>Marketing funds follow the best performer Attributing revenue correctly
    14. 14. Exposure to Conversion Different contact points prior to purchase
    15. 15. <ul><li>49% of bookings exposed to both Display & Paid Search made Brand Term searches. </li></ul><ul><li>93% of bookings exposed to both Display & Paid Search where attributed DIRECTLY to Paid Search (owing to Last Click Wins Attribution model). </li></ul>Case Study: Display & Paid Search Sample size of 14,313 travel brand bookings Display Only Paid Search Only Exposure to Both $1,593,058 3,385 bookings 24% ( ) $4,135,648 9,008 bookings 62.5% ( ) $888,344 1,920 bookings 13.5% ( )
    16. 16. Listen to social media. It is more than branding. It is sentiment.
    17. 17. <ul><li>Measure and leverage conversation about your brand </li></ul><ul><li>online </li></ul><ul><li>Not for the purpose of promoting your brand but understanding your potential customers </li></ul><ul><li>Indentify key sources of WOM and key influencers </li></ul><ul><li>Bain & Co. Net Promoter index ® is a simple key metric </li></ul><ul><li>Travel client blog </li></ul><ul><li>Average conversion rate of a blog visitor is 50% higher than a non blog visitor </li></ul><ul><li>Average transaction value of a blog visitor is 16% high than a non blog visitor </li></ul><ul><li>Measuring the gold dust of social media point of view </li></ul><ul><li>insight piece > visit </li></ul>Word of mouth on demand Measuring sentiment
    18. 18. <ul><li>Alain Portmann </li></ul><ul><li>Web Liquid Group </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>