Conversations with Financial Directors ..about the measurement and accountability of Digital Marketing.

Independent organically funded agency founded in 2003 with offices in New York and London In 2007 we generated USD $251 million in revenue for our clients, delivering a profit on investment of 10 (22 ROI) Manage online advertising investments across 10 European markets, Australia and North America Most efficient UK Digital Marketing Agency in 2006 and 2007 (Revolution Magazine) Who we are Thinking : Returns

Independent organically funded agency founded in 2003 with offices in New York and London

In 2007 we generated USD $251 million in revenue for our clients, delivering a profit on investment of 10 (22 ROI)

Manage online advertising investments across 10 European markets, Australia and North America

Most efficient UK Digital Marketing Agency in 2006 and 2007 (Revolution Magazine)

Consulting Channel Planning & Budgeting Pay per Performance Acquisition Strategies Measurement and Accountability Media Strategy, planning, buying, optimisation & analysis Behavioural and contextual targeting Creative Planning, design, concepting and production Social Media Marketing Measurement & monitoring of consumer sentiment & consumer generated insights Email Marketing List management, deployment, segmentation and measurement Services we offer What we do

Consulting

Channel Planning & Budgeting

Pay per Performance Acquisition Strategies

Measurement and Accountability

Media

Strategy, planning, buying, optimisation & analysis

Behavioural and contextual targeting

Creative

Planning, design, concepting and production

Social Media Marketing

Measurement & monitoring of consumer sentiment & consumer generated insights

Email Marketing

List management, deployment, segmentation and measurement

Who we work for The company we keep

“ Are we using the correct business metrics – given our customers interact through so many channels?” “ Marketing people tend to differ technical questions to the IT team – I need consensus when it comes to measuring return” “ Are we measuring and attributing true incremental revenue from online investments?” “ What is the value of hiring a full time data analyst?” Listening to our clients The challenge for Digital Marketing investments

“ Are we using the correct business metrics – given our customers interact through so many channels?”

“ Marketing people tend to differ technical questions to the IT team – I need consensus when it comes to measuring return”

“ Are we measuring and attributing true incremental revenue from online investments?”

“ What is the value of hiring a full time data analyst?”

Defining what is important. Questions that need answering

Planning What do we know (or believe) they need? Engagement Where did they come from? Are they existing or new visitors/customers? What are they doing? Why are they leaving? Conversion What are they buying? How long is it taking them to buy? Where are they interacting/buying - call centre, online, retail? What else could they buy? Conversation Why should they come back? What else can we offer them that is of value? How are they influencing peers and potential customers? Single philosophy 12 questions to answer

Planning

What do we know (or believe) they need?

Engagement

Where did they come from?

Are they existing or new visitors/customers?

What are they doing?

Why are they leaving?

Conversion

What are they buying?

How long is it taking them to buy?

Where are they interacting/buying - call centre, online, retail?

What else could they buy?

Conversation

Why should they come back?

What else can we offer them that is of value?

How are they influencing peers and potential customers?

Measuring Return. Move on from ROI. Thinking POI.

Calculating Return on investment: (Revenue – Advertising Cost)/ Advertising Cost Advertising Cost Media investment Creative investment Agency management fees Trafficking Ad serving/measurement fees Calculating Profit on Investment (Revenue – Business Cost)/Business Cost Revenue Quality and quantity of revenue Business Cost Advertising costs Fixed operational costs British Airways = Net Quality Revenue Webliquid travel client = ROI of 4 was break even! From measuring ROI to POI Accountability

Calculating Return on investment:

(Revenue – Advertising Cost)/ Advertising Cost

Advertising Cost

Media investment

Creative investment

Agency management fees

Trafficking

Ad serving/measurement fees

Calculating Profit on Investment

(Revenue – Business Cost)/Business Cost

Revenue

Quality and quantity of revenue

Business Cost

Advertising costs

Fixed operational costs

British Airways = Net Quality Revenue

Webliquid travel client = ROI of 4 was break even!

Tracking multiple channels. Single tracking; single customer view

Removes double counting of conversions Single tracking can be achieved while leveraging best of breed tools (paid search bid management tools) Use referring IDs or click commands to redirect traffic Understand true revenue contribution by channel Provides true exposure to conversion data – measure user path from engagement to conversion Track the contribution of all sources Every channel has a role to play

Removes double counting of conversions

Single tracking can be achieved while leveraging best

of breed tools (paid search bid management tools)

Use referring IDs or click commands to redirect traffic

Understand true revenue contribution by channel

Provides true exposure to conversion data – measure user

path from engagement to conversion

Attribution of revenue. Give credit where credit is due

Last click model is the standard, yet inefficient: Underestimates the role of other media which influences users on their path to conversion Overestimates the ROI from the last click (e.g. brand term paid search) Assumes a linear path to conversion Exposure to conversion data – determine the customer journey to conversion Understand impact of post impression conversions Attribute a percentage of every booking to each channel part of the conversion process Webliquid client initial attribution model: Brand term conversion driven by 2 other channel interactions; credit only 50% of conversion to brand term Marketing funds follow the best performer Attributing revenue correctly

Last click model is the standard, yet inefficient:

Underestimates the role of other media which influences users on their path to conversion

Overestimates the ROI from the last click (e.g. brand term paid search)

Assumes a linear path to conversion

Exposure to conversion data – determine the customer

journey to conversion

Understand impact of post impression conversions

Attribute a percentage of every booking to each channel

part of the conversion process

Webliquid client initial attribution model:

Brand term conversion driven by 2 other channel interactions; credit only 50% of conversion to brand term

Exposure to Conversion Different contact points prior to purchase

49% of bookings exposed to both Display & Paid Search made Brand Term searches. 93% of bookings exposed to both Display & Paid Search where attributed DIRECTLY to Paid Search (owing to Last Click Wins Attribution model). 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% ( )

49% of bookings exposed to both Display & Paid Search made Brand Term searches.

93% of bookings exposed to both Display & Paid Search where attributed DIRECTLY to Paid Search (owing to Last Click Wins Attribution model).

Listen to social media. It is more than branding. It is sentiment.

Measure and leverage conversation about your brand online Not for the purpose of promoting your brand but understanding your potential customers Indentify key sources of WOM and key influencers Bain & Co. Net Promoter index ® is a simple key metric Travel client blog Average conversion rate of a blog visitor is 50% higher than a non blog visitor Average transaction value of a blog visitor is 16% high than a non blog visitor Measuring the gold dust of social media point of view insight piece > visit webliquidgroup.com Word of mouth on demand Measuring sentiment

Measure and leverage conversation about your brand

online

Not for the purpose of promoting your brand but understanding your potential customers

Indentify key sources of WOM and key influencers

Bain & Co. Net Promoter index ® is a simple key metric

Travel client blog

Average conversion rate of a blog visitor is 50% higher than a non blog visitor

Average transaction value of a blog visitor is 16% high than a non blog visitor

Measuring the gold dust of social media point of view

insight piece > visit webliquidgroup.com

Alain Portmann Web Liquid Group [email_address] www.webliquidgroup.com

Alain Portmann

Web Liquid Group

[email_address]

www.webliquidgroup.com