Analytics - and choosing your optimization goals

Analytics - and Choosing your optimization goals YAHOO! CONFIDENTIAL DENNIS R. MORTENSEN | MAY 2010

Entrepreneur Author Blogger WAA Yahoo!

Choosing optimization goals. Why is this important ? DENNIS R. MORTENSEN | MAY 2010

You must serve the overall purpose of the organization (of course) DENNIS R. MORTENSEN | MAY 2010

The goals of most organizations are usually set as KPIs DENNIS R. MORTENSEN | MAY 2010

Are your optimization goals, KPI duplicates ? DENNIS R. MORTENSEN | MAY 2010

If optimization goals are NOT KPI duplicates, surely they are KPI derivatives ? DENNIS R. MORTENSEN | MAY 2010

If optimization goals are NOT KPI derivatives, they must certainly be KPI derivative proxies ? DENNIS R. MORTENSEN | MAY 2010

None of the above – then what ? Certainly not CTR or Visits :-) DENNIS R. MORTENSEN | MAY 2010

The further away your optimizations goals are from your organizational KPIs – the higher the risk of applying direct harm. (turning decent marketing initiatives into organizational de-optimization exercises) DENNIS R. MORTENSEN | MAY 2010

Assuming we have an optimization goal metric, that is well aligned with organizational KPIs * we should be home safe, yes ? DENNIS R. MORTENSEN | MAY 2010

An optimization goal is inheritably aligned with attribution choices (multiple online channels, and generally a changing universe) DENNIS R. MORTENSEN | MAY 2010

Does the optimization goal apply for respectable attribution modeling ? DENNIS R. MORTENSEN | MAY 2010

Assuming we have perfect organizational aligned goals, that can be accurately attributed their fair success * we should be home safe, yes ? DENNIS R. MORTENSEN | MAY 2010

An online optimization goal in likely to be built into an online marketing initiative. (mixing online and offline) DENNIS R. MORTENSEN | MAY 2010

Does the optimization goal apply for respectable attribution modeling in conjunction with Media Mix Modeling ? DENNIS R. MORTENSEN | MAY 2010

Example: Let’s have a look at how people attack PPC optimization goal setting DENNIS R. MORTENSEN | MAY 2010

Impressions DENNIS R. MORTENSEN | MAY 2010

CTR DENNIS R. MORTENSEN | MAY 2010

Visit-to-Sales Conversion DENNIS R. MORTENSEN | MAY 2010

Visitor-to-Sales Conversion DENNIS R. MORTENSEN | MAY 2010

Revenue per Visit DENNIS R. MORTENSEN | MAY 2010

Revenue per Visitor DENNIS R. MORTENSEN | MAY 2010

Profit per Visitor DENNIS R. MORTENSEN | MAY 2010

Lifetime Value of a Visitor DENNIS R. MORTENSEN | MAY 2010

Customer Lifetime Value DENNIS R. MORTENSEN | MAY 2010

In conclusion Setting optimization goals: You want to create marketing scenarios, where you can predict an organizational aligned outcome with a high level of confidence AND it’s not easy DENNIS R. MORTENSEN | MAY 2010

Want to know more about Analytics, Media and Marketing? VisualRevenue.com/blog or Twitter.com/DennisMortensen

Thank you Dennis R. Mortensen, Director of Data Insights at Yahoo! | dennis.mortensen@yahoo-inc.com Blog: http://visualrevenue.com/blog Book: http://visualrevenue.com/blog/yahoo-analytics-book Twitter: http://twitter.com/DennisMortensen

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Analytics - and choosing your optimization goals

by Dennis Mortensen

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