eMarketer Webinar: Secrets to Online Marketing Success

Presented by: Geoffrey Ramsey CEO & Co-Founder, eMarketer @geofframsey J U N E 3 0, 2 0 1 1 Secrets to Online Marketing Success Sponsored by: #eMwebinar

Believe in the Magic of Engaging and Measuring

Can you identify with these two problems?
Lack of adequate metrics and measurement systems to drive marketing performance
Frustration with how to effectively engage online consumers, who have short attention spans, face abundant choices and are increasingly resistant to advertising messages
Twitter: #eMwebinar @geofframsey

$1 Trillion Total US Marketing (VSS, Myers, PwC, etc.)
Internet as “Hub”
Consumer time & engagement
Huge purchase influence
Media measurement “hook”
= 20% of total media in 2011
$368 Billion Advertising & Marketing (Outsell) $157 Billion Traditional & Digital Advertising (eMarketer) $31 B Digital (eMarketer)

MAGNAGLOBAL….. 15.6% Deutsche Bank……. 15.3% Barclays................... 15.2% Morgan Stanley……. 14.8% Citi…………….......... 14.6% Winterberry Group…. 14.0% WARC…..….. ………. 13.7% Caris & Co.…………. 13.3% GroupM……………... 13.0% ZenithOptimedia……. 12.6%

Can you identify with these two fundamental problems?
Lack of adequate metrics and measurement systems to drive marketing performance
Frustration with how to effectively engage online consumers, who have short attention spans, face abundant choices and are increasingly resistant to ad messages
Secret #1 is all about the need for Performance Measurement…

Marketer’s view of performance measurement

“ The challenge is: ‘Prove to me that marketing works’… that the investments are paying back in both short- and long-term deliverables.” --Bob Liodice, CEO, ANA

The most commonly used metrics (CTR/time spent) cannot be used by themselves The industry has not come up with a common definition of engagement that is aligned with business results and ROI. Performance measurement online : know the right metrics framework

Twitter: #eMwebinar @geofframsey Secret #2 gets at the problem of engagement with digital consumers

4.4% 43% of consumers say they ignore or disregard banner ads more than any other type of ad. Source: AdweekMedia/Harris Poll, October 2010

The classic interruption/disruption model of advertising is waning… Buy Now!

“ We need to create experiences , not just sponsor content.” --Frank Cooper, CMO, Pepsi “ Marketers are focusing on creating Magnetic Content – so entertaining, relevant, informative or useful that it demands the consumer’s time and attention.”

The Magnetic Content approach turns targeting on its head.

Five Criteria for Magnetic Content
Is the content Unique ?
Is it Useful ?
Is it Well Executed ?
Is it Fun ?
Does it make good use of the channel in which it appears?
“ What can I do for you, the consumer, that is unique and valuable—i.e., truly worth your time and attention?”

Is it Unique?

Is it Useful?

Is it Fun? Home sales of blenders up 700% since the video series began!

Is it Well Executed?

Creative execution counts Twitter: #eMwebinar @geofframsey

Use “paid media” (e.g., display ads) to drive consumers to your Magnetic Content

Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Time on Page Page CTR Circular Paths Exit Rate Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate How do we optimize traffic? Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Does the media drive high quality traffic? Time on Page Page CTR Circular Paths Exit Rate How do we improve our creative? Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comments Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Do we have the right site content? Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Is site navigation working as intended? Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Evaluating online ads Time on Page Page CTR Circular Paths Exit Rate Too many metrics… big challenge is deciding the right metric

Start with right measurement framework Perceptual & Behavioral Outcomes Financial Outcomes Marketing Investment LINKAGE LINKAGE LINKAGE Financial/business metrics used to quantify business performance Low level measures related to the performance of individual channels Higher level metrics that capture engagement, as well as brand health and changes in customer preference and perceptions Twitter: #eMwebinar @geofframsey

Qualified Reach, Visits
CTR
Brand perception Lift
Engagement Score
End Action Rate (e.g., acquisition, redemption, trial, purchase, etc.)
Efficiency Metrics (Cost/X)
ROI
The 7 most important metrics to master I. Exposure Metrics II. Strategic Metrics III. Financial Metrics

Engagement Score aligned to the objectives of the content Recommend, referrals Profiles, Upload pictures Send to friend, Social media Signup, Email, Coupon, WTB Rate, Vote, Add comments Play videos, Demos Content, Pictures HIGHER VALUE LOWER VALUE Engagement Value Continuum Advocate ILLUSTRATIVE ENGAGEMENT

Applying Engagement Score to a Microsite Engagement Index Methodology 1 Point 1 Point 1 Point 1 Point 1 Point 2 Points 1 Point 2 Points 3 Points 3 Points 2 Points 3 Points 1 Point 2 Points 2 Points 1 Point 1 Point 2 Points Twitter: #eMwebinar @geofframsey

Engagement Score Advocate Recommendation, referral

Applying Magnetic Content and Performance Measurement to the Six Digital Channels

Sample Digital Channel: Social Media Social Media: Connections that Count

Affluent (Dwell Strategy + Research, March, 2010) 78% Millennials 18 - 34 82% Teens 12 - 17 78%

Social media spending will continue to explode in 2011 10% of total US online ad spend

Social media spending will continue to skyrocket in 2011 10% of total US online ad spend 33% of display impressions* 17% of display ad dollars** *comScore, 2011 **eMarketer, 2011 It ’ s less about buying social media, and more about how you can earn and own it! It ’ s all a matter of TRUST Consumers trust each other more than they do marketers

Four best practices for Magnetizing customers through social media:
Leverage the secret ingredient: Trust
Listening leads to learning
Add Value to the conversation ( à la Magnetic Content!)
Focus on your Core Enthusiasts

How can you leverage trust through social media?
Let your fans come to your rescue
Allow for customer ratings & reviews
Transparency Trust =

Learn how consumers talk about your brand, product or service category
Notice what words and language they use
Learn about their interests and intentions
Discover real or perceived problems with your product or customer service
Listening Leads to Learning

“ By listening carefully, we harness social media as an early alert system...so we can react quicker to issues.” --Richard Brinhammer, Dell “ Warning! Warning!”

Add value to the conversation…

Censored Unique Useful Well executed Fun Great use of channel

Focus on Your Brand Enthusiasts: Prospects Customers CORE Find them via Social Media Nurture them carefully Empower them to share

Consumers Who “Like” or Follow a Brand:
Are more likely to buy 1, 3, 4 …………………. 51%
Tend to spend more money 2 ……………….. $71
Are more likely to recommend 1, 3, 4 ……..…. 60%
Are more likely to be loyal to the brand 3 …. 34%
Sources: 1) Chadwick Martin Bailey, Mar, 2010; 2) Syncapse, 2010;
3) ROI Research, June, 2011; 4) DDB Worldwide and OpionWay Research, Oct, 2010

% of marketers who say their ability to measure ROI for media channel is “good” Social media 19% Paid search 54% N = 567 global marketers,2010 E-mail marketing (acq) 53% Online display 37% TV 21% Newsp/Mags 20%

If hard ROI metrics are difficult to track directly, consider a range of softer metrics that can be linked back to desired outcomes. # of Likes # of Twitter Followers Brand Sentiment Video Sharing # of Brand Searches “ Soft” Metrics (i.e., Measures of Engagement)
“ Hard” ROI
Sales
Leads
Cost-per-sale
Profits

Applying our framework to social media Perceptual & Behavioral Outcomes Financial Outcomes Marketing Investment LINKAGE LINKAGE LINKAGE

Identify the specific metrics that will be measured within each bucket I. Exposure
Social Networks (Facebook/Myspace):
Number of fans/friends
Number of comments
Twitter:
Number of followers
Number of tweets
Number of re-tweets
Videos/Photos (YouTube, Flickr):
Number of views
Number of comments
Number of pass-alongs

Brand Perception Lift (measured pre- and post, test vs. control) :
Brand awareness
Brand attribute lift
Brand Favorability
Purchase intent
Engagement Score :
Based on actual behavior, it represents the degree of magnetism for your social content
Assign points (e.g., a status update or tweet will have a lower value than adding a new fan or follower)
II. Strategic

*Transcend individual social channels Efficiency Metrics of Cost per X : Cost per fan/friend/follower/member Cost per comment/tweet Cost per brand perception lift Cost per increase in purchase intent # of Qualified Leads Sales/Purchases ROI III. Financial*

Identify and segment individuals in your target audience into two groups: those Exposed to social content and a Control group (not exposed)
Compare outcomes (e.g., purchase history, intent to purchase, sign-ups for a demo) between the two groups by measuring the ‘lift’
Calculate ROI for the initiative…
Using consumer panels, design a ‘test & control’ (A/B) approach to compare outcomes for each metric

Once you have the right set of metrics, can you get to ROI? Access to a purchase is required Visibility into Purchase through: a) Self-reporting (surveys) b) Matching to transaction database c) Capturing online purchases

Calculating ROI for social media: VALUE for Exposed Group VALUE for Control (not exposed) Group Fully Loaded Costs X 100%

ROI approach illustrated with an example Consumers Incremental Sales Lift Incremental Revenue Cost ROI Value $1,480,449 6 to 1 77,753 $10,457,414 500,000 Profit $8,019,414 Primary goal Acquire new prescriptions Incremental sales from test sales data obtained from panel Approach Used panels for, incremental prescriptions Prescriptions X price Price X margin Loaded costs Profit/costs Unique visitors Viewing content

Key Takeaways:
Magnetic Content is a complement to your traditional “paid media” efforts – it’s about attraction, not distraction
Performance Measurement is about selecting the right metrics from across the three categories of the metrics pyramid (Exposure, Strategic, Financial)
Follow the steps, guidelines and frameworks in the book to drive Digital Impact

LivePerson Creating Customer Connection June 30, 2011

LivePerson – Enables Meaningful, Real Time Customer Connections

Deliver Timely, Relevant Content to Your Customers Secret #2 gets at the problem of engagement with digital consumers

Deliver Timely, Relevant Content to Your Customers

Create Your Own Virtual Social Media Monitoring Room…With Real Time Response

Create Your Own Virtual Social Media Monitoring Room…With Real Time Response Using predefined business rules, you can respond with a Tweet of your own, inviting the customer to chat with a representative to resolve their issue in real-time: A customer shares feedback on Twitter:

LivePerson can help you engage with your digital customers! Connect with us… www.liveperson.com www.facebook.com/LivePersonInc @liveperson User: LivePersonCommunity

Secrets to Online Marketing Success Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or [email_address] Digital Impact: The Two Secrets to Online Marketing Success – Now Available Twitter Hashtag: #eMwebinar Sponsored by : Presented by: Geoffrey Ramsey CEO & Co-Founder, eMarketer, Inc.

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