Achieving Cross Channel Marketing Mix Nirvana

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This deck, intended for marketing and media professionals, explores opportunities to refine your cross-channel media mix. Eric Anderson, VP of Emerging Media at Whtie Horse covers channel trade-offs and introduces some theories for evaluating the effectiveness of individual channels and cumulative campaign results.

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  • PhilLee99,

    I’m sorry that you recall an experience with White Horse that fell short of expectations, and we’d like to find a way to make good on that. From your username alone, we can’t identify you as a former client, so please feel free to reach out to me directly (877.471.4200) and let me know what I can do.

    Thanks,

    Ami
    White Horse
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  • Good use of charts to tell a story. Strategic and accessible. All in all a great presentation.

    Unfortunately, my company's experience with White Horse was not so good. The team had a good grasp of the theory but were not able to translate that into business outcomes. Great with white boards, not so great with delivery.

    The moral with any agency, especially White Horse in my recent example, is to set clear goals and ensure accountability and not get blinded by the white light on pitch day.
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Achieving Cross Channel Marketing Mix Nirvana

  1. 1. <ul><li>Eric Anderson </li></ul><ul><li>VP of Emerging Media </li></ul><ul><li>White Horse </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  2. 2. <ul><li>This presentation on media mix optimization is brought to you by the letter “S.” </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  3. 3. <ul><li>As complex as media planning has become, it has never deviated from the simple formula of the “S” curve. </li></ul><ul><li>  </li></ul>A campaign that defines its success by lift – e.g., sales or brand awareness – will have an S as its goal.   Sales Impressions per Target Threshold where you’re delivering the minimum impressions to impact sales Point of equilibrium where you’re delivering the right number of impressions for max ROI © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  4. 4. <ul><li>As complex as media planning has become, it has never deviated from the simple formula of the “S” curve. </li></ul><ul><li>  </li></ul>A campaign that defines success by reduction – e.g., in cost per lead – will have a reverse S. In both cases, we’re chasing that point of maximum efficiency before performance tails off.   Cost-per-Lead Impressions per Target Point of Equilibrium © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  5. 5. <ul><li>The S-curve is pretty simple to manage and measure when you’re working in only one medium – especially a measurable one. </li></ul><ul><li>  </li></ul>Sales Impressions per Target Ramp up impressions! Ramp down impressions! © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  6. 6. <ul><li>It becomes insanely complex when you’re working in multiple channels. </li></ul><ul><li>If you can’t isolate the contribution of each channel, how do you know how when you have the right mix? </li></ul><ul><li>  </li></ul>Sales Print, Web, TV, Outdoor Total Impressions per Target Ramp up display impressions? Print? TV? A little of each? A lot of one and a little of the others? Yes for one demographic, no for others? And when will we know if it worked? With all these channels, can we even find equilibrium before the campaign ends? Probably not. © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  7. 7. <ul><li>Like baldness treatments, various methods have been tried – but none of them are entirely convincing. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  8. 8. <ul><li>Method 1: Common cross-channel metrics, like good old-fashioned reach & frequency. </li></ul><ul><li>  </li></ul>See here, old boy – Reach and Frequency work just fine! You figure out your target audience, then how many impressions each channel can give you for that audience, then you divvy up your media that way! Traditional Media Buyer © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  9. 9. <ul><li>  </li></ul>Method 1: Common cross-channel metrics, like good old-fashioned reach & frequency.   R&F is so last century, 1950s Dude! It doesn’t actually measure performance . You still need separate models to figure out what R&F is best for your goals. Contemporary Media Buyer © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  10. 10. <ul><li>Method 2: Control for the incremental impact of adding another channel. </li></ul><ul><li>  </li></ul>You can do that sequentially…   Problem: People don’t actually consume media as if they’re wearing out a pair of shoes.   Source: The Ephron Consultancy © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  11. 11. <ul><li>Method 2: Control for the incremental impact of adding another channel. </li></ul><ul><li>  </li></ul>Or you can do it simultaneously, one channel at a time.   Problem: How expensive and complicated is this going to get when you’re dealing with 4 or 5 channels?   Source: Avenue/Razorfish, “Actionable Analytics” © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  12. 12. <ul><li>Method 3: Ask users which channel delivered them, then optimize based on results. </li></ul><ul><li>  </li></ul>Problem: This remains stuck in the “last click” rut – it only accounts for the last exposure the user had, not the cumulative impact.   © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  13. 13. <ul><li>Method 4: Go behavioral – figure out how your target consumes media, then divide accordingly </li></ul><ul><li>  </li></ul>Problem: better than R&F, but it’s still directional. You don’t know how each channel actually performed , so you’ll still waste money.   © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  14. 14. <ul><li>Method 4: Go behavioral – figure out how your target consumes media, then divide accordingly </li></ul><ul><li>  </li></ul>Forrester has tried to improve this model by combining behavioral data with the strengths of a given medium (e.g., TV is good for awareness) to produce a mix.   But at the end of the day, it’s, yes, directional – a best guess at what will work.   © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  15. 15. <ul><li>If you use any of these methods, you’re in good company. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  16. 16. <ul><li>Media planners mostly agree: to truly know what works, you need to create a backwards-looking model that analyzes the impact of each channel. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  17. 17. <ul><li>But that can be difficult, painful, and expensive. Most media buyers would prefer to use limited model data combined with educated guesses. </li></ul><ul><li>  </li></ul>Which is exactly why the shift to new media is nerve-wracking: the old models are no longer reliable.   © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  18. 18. <ul><li>In digital media-buying, though, we have the luxury of knowing (almost) exactly what works. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  19. 19. <ul><li>The real break-through came when we moved beyond the “last click” fallacy and could measure the contribution of every exposure. </li></ul><ul><li>  </li></ul>Source: Avenue/Razorfish, “Actionable Analytics” © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  20. 20. <ul><li>We can create precise sequences of ads and serve them based on the user’s actions and past exposure. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  21. 21. <ul><li>And we’re no longer beholden to clicks – we can measure the actions of users who saw ads but showed up later. </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  22. 22. <ul><li>So if digital is so good at creating media mix models, what can it do for offline media? </li></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  23. 23. <ul><li>Answer: LEAD WITH DIGITAL to create the offline media model. </li></ul><ul><li>Test digital venues based on goals, then map those venues to their offline counterparts. </li></ul><ul><li>  </li></ul>Awareness Preference Purchase TV Radio Outdoor Newspaper Magazine PR Direct Mail Takeover Display Interactive Display Paid Search Sponsored Content Standard Display Affiliates Social Video OFFLINE ONLINE © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  24. 24. <ul><li>Example: Create a digital campaign based on driving early awareness leading to direct conversion. </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>There’s something new coming from Brand X. I keep seeing these teaser ads. I get it – their new campaign is a whole new take on Category Y. I’ve got to have this thing. © 2009 White Horse Productions, Inc. Content may not be reused without permission. Hypothetical Ad Sequence Takeover Takeover Interactive Interactive Offer Offer
  25. 25. <ul><li>Create a 90-day test that determines the optimal number of combined awareness and offer impressions to produce a conversion. </li></ul><ul><li>Then you’ve not only got your S curve, you also know which venues produced it. </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>Sales Impressions per Target <ul><li>Users exposed to a sequence of ads: </li></ul><ul><li>Takeover </li></ul><ul><li>Interactive </li></ul><ul><li>Offer </li></ul>Optimal impression path: two takeovers plus offer. © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  26. 26. <ul><li>Feed this data into your cross-channel planning. Apportion your impressions according to what actually worked . </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>Cross-Channel Mix © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  27. 27. <ul><li>Which begs the question: if digital can do it all, from awareness to sales, why not just spend it all in digital? </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>Well, some brands have come to that conclusion.   x © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  28. 28. <ul><li>But the reality is every channel still has its strengths, even if understanding the combined strength is so difficult. </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  29. 29. <ul><li>By using digital to model the media mix, we may finally be able to answer John Wanamaker’s famous dilemma: </li></ul><ul><li>  </li></ul><ul><li>x </li></ul>Answer: It’s the half you’re not modeling.   x I know half of the money I spend on advertising is wasted. The problem is, I don’t know which half. © 2009 White Horse Productions, Inc. Content may not be reused without permission.
  30. 30. <ul><li>Recommendations </li></ul><ul><li>  </li></ul><ul><ul><li>The most important thing, whether cross-channel or single-channel, is to know your S-curve. </li></ul></ul><ul><ul><li>Next most important: go beyond R&F and allocate according to goals and the behaviors that accompany them. </li></ul></ul><ul><ul><li>But to find marketing mix nirvana: you need to know what works based on real data and be able to divvy your budget with the serenity of the Buddha. </li></ul></ul><ul><li>  </li></ul>© 2009 White Horse Productions, Inc. Content may not be reused without permission.
  31. 31. <ul><li>  </li></ul>THANK YOU Visit Slideshare for the complete library of White Horse Webinar decks. Eric Anderson, VP of Emerging Media [email_address] www.w h itehorse.com | Twitter: @whitehorsepdx | Blog: http://community.whitehorse.com   © 2009 White Horse Productions, Inc. Content may not be reused without permission.
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