Analytics - and choosing your optimization goals

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Setting optimization goals: You want to create marketing scenarios, where you can predict an organizational aligned outcome with a high level of confidence.

Technology

Analytics - and Choosing your
optimization goals

YAHOO! CONFIDENTIAL
DENNIS R. MORTENSEN | MAY 2010

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

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

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

2. Entrepreneur Author Blogger WAA Yahoo!

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

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

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

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

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

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

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

10. 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

11. 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

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

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

14. 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

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

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

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

18. Impressions DENNIS R. MORTENSEN | MAY 2010

19. CTR DENNIS R. MORTENSEN | MAY 2010

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

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

22. Revenue per Visit DENNIS R. MORTENSEN | MAY 2010

23. Revenue per Visitor DENNIS R. MORTENSEN | MAY 2010

24. Profit per Visitor DENNIS R. MORTENSEN | MAY 2010

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

26. Customer Lifetime Value DENNIS R. MORTENSEN | MAY 2010

27. 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

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

29. 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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