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OMS Presentation: Online Strategy And Metrics - Steve Latham 20090205
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OMS Presentation: Online Strategy And Metrics - Steve Latham 20090205

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Here is my presentation from OMS 2/5/09 on Web strategy, metrics and ROI measurement. Also check out the Google Trends data to see how you can have a barometer of how your campaign compares to the …

Here is my presentation from OMS 2/5/09 on Web strategy, metrics and ROI measurement. Also check out the Google Trends data to see how you can have a barometer of how your campaign compares to the market.

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  • Thanks for taking a look at my presentation. if you are interested in learning more about Social Media, here are some other presentations and a resource kit for you should find useful:

    Social Media Strategy: http://bit.ly/7AS1zT
    Business Case for Social Media: http://bit.ly/lEB4b
    New Media Toolkit http://bit.ly/3hQh3Z

    If you’d like a copy of any of these please contact me via:
    Twitter http://twitter.com/stevelatham
    Facebook: http://facebook.com/stlatham

    Good luck!
    - Steve
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  • 1. Online S&M (Strategy and Metrics) Steve Latham February 2009
  • 2. My goals for today… Provide some useful data points Prescribe a Roadmap for Success Explain how to measure ROI from online marketing Present a case study If that doesnʼt work… ...Iʼll try to impress you with graphics and animation 2
  • 3. Consumer Behavior is Changing… Web accounts for >30% of media time (1) We’re #2! Online is becoming the medium of choice   #1 medium among under 30 (2)   15 million seniors online (growing fast) 50% of online time = “communitainment”   Community, Interaction, Entertainment   Enabled in part by Social Media (1) Credit Suisse, 2006 (2) Forrester 2006 3
  • 4. Media Landscape is Changing… In one word… fragmentation   1966: 5 mediums dominated   2006: 30+ mediums TV no longer offers same reach   1977: 70% reach  3 commercials   2007: 70% reach  184 commercials   >50% of primetime TV is time-shifted Print news circulation is declining Radio losing share to Satellite + iPods Direct Mail is losing effectiveness 4
  • 5. What This Means to Us (Marketers) “Prime-Time” has been replaced by “My Time”   Consumers choose when and how they engage Web impacts all businesses   While only 3% of retail sales are done online…   Web influences 25% of offline sales(1)   70% of searchers purchase offline   p.s. they spend more in-store Customers have high expectations   They expect to find “it” quickly and 
 easily…regardless of device Customers have more options   Competitors are only clicks away 5
  • 6. Threat or Opportunity? While some are threatened… …Others are excited! Crisis = Danger + Opportunity(1) Savvy marketers are embracing the new paradigm Ford: 15% of $1bn budget to digital GM: 50% of $3bn budget to digital JC Penney: 70% of BTS budget (1) The two characters for Weiji or “Crisis” in Mandarin are often said to represent “danger” and “opportunity.” Chinese dispute the translation. 6
  • 7. Online Media Mix Can Be Overwhelming E-Mail Video Search House & 3rd Display and Paid + Party email Display Social Pre-roll Natural Rich, Flash and Networks, Blogs, Static Ads Photos, Videos Content Portals Search Ad Networks Social Networks Affiliate $$$ 7
  • 8. What To Do in Troubling Times? Weak economy  shrinking budgets Increases focus on ROI   Leads, Transactions, Revenue Follow lead of savvy brands   Shift budgets to digital   Focus on proven methods   Test, Test, Test 8
  • 9. So Where Do You Start? (everyone has a different opinion, here is mine) 9
  • 10. Start With a Foundation Optimize Site Usability and Effectiveness Good User Experience + Effective Branding + CTAs = $$$   Establish metrics and system for measuring results Focus on metrics that indicate intent to purchase   Search Engine Marketing Engage customers who are “in the market”   Email marketing Cultivate long term relationships   Site Usability Metrics Search Email 10
  • 11. Whatʼs Next? ??? UGC Mobile Social Media Display Video Site Usability Metrics Search Email 11
  • 12. ..And if youʼre interested in Social Media What the #*&@%# ??? 12
  • 13. How to Play in Social Media Participate in online discussions Start posting on other sites     Be transparent: http://flyertalk.com/forum/showthread.php?t=786742 Get on LinkedIn, Facebook and Twitter Low-cost way to reach and engage audiences     Make sure you have resources to market it! Start a dialogue on your site Invite users to participate in discussion     Market like crazy! 13
  • 14. Measuring ROI begins with Metrics
 So…what should we measure? 14
  • 15. Measure that which Indicates Value Basic Metrics Engagement metrics   Impressions   % Returning   Clicks / Visits   Frequency of visit   Page views   Pages viewed per visit   Time on site   Registrations   Transactions Web 2.0 Metrics   Posts / Participation   Viewing Videos or Photos   Uploading content   Sharing / Posting 15
  • 16. Look Beyond the Last Click Decision cycles are not linear     Users often make multiple before taking action   Engagement entails multiple touch points Credit is usually attributed to the last click     Design flaw of most analytics platforms   Generally rewards Search, punishes Display and Email Case Studies: •  FedEx Kinko’s: 20% of “search” leads had display cookies •  After adjusting, reduced display CPL by 50% •  Zeno: average purchase took place after 3rd visit •  Search was used 50% of 2nd visits, 40% of 3rd visits Takeaway: understand which touch points drive action   (aka “Engagement Mapping”) 16
  • 17. Take a Holistic View Some results are directly traceable… but many are not!   Due to cookie deletion and multiple machines Case Studies: •  B2C retailer: 30% increase in home page traffic when display campaign launched (beyond click-throughs) •  Bank: 4 “home page” actions for every traceable 1 action Create a baseline 
   for comparison Agree upfront how to 
   attribute credit 17
  • 18. A New Way To Index Performance 12
Month
Google
Search
Index:
WIDGET
 3
 Understand the Context of your 2.5
 environment – use Google Trends as a proxy for Demand. 2
 1.5
 1
 
1.40

 0.5
 
1.20

 0
 
1.00

 
0.80

 
0.60

 Show your RELATIVE performance by indexing your quot;Google
Trends
‐
30
Day
Indexquot;
 
0.40

 results vs. Google Trends quot;Online
Leads
‐
30
Day
Indexquot;
 
0.20

 
‐



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  • 19. Communicate in a Way that Works Communicate Daily and Cumulative Leads Results, not data Executives LOVE Dashboards! Cost per Lead by Outlet Campaign Summary # Leads by Outlet 19
  • 20. How Do We Value Engagement? Determine how Actions  Intent Action Value Visits Indicates awareness Registrations Indicates consideration Store lookups Indicates preference Coupon Downloads Indicates action Tell A Friend Indicates loyalty Forecast how Intent  $$$  Some % of those who show Intent will buy Do the math and apply across each set of actions Use common sense to normalize results 20
  • 21. A Quick Example Campaign assumptions: Investment $10,000 Impressions ($5 cpm) 2,000,000 Visits (direct and indirect) 10,000 Registration (lead) rate 3% Lead Close rate 10% Revenue per customer $2,500 Expected Results: Another way to view it: • 300 leads • Value per visit: $7.50 • 30 customers • Cost per visit: $1.00 • $75k in revenue • $7.50 ROAS* *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits that did not register is of equal if not greater value. 21
  • 22. ROI Methodology Project Value Normalize Divide by Define Assign Close for each (average) Cost or Metrics Rates action Values investment Such as: Forecast: Project: Strengthen by: Net it out: •  Visits •  What % will •  Revenue, Margin •  Eliminate •  Return on purchase? or  outliers Spend NPV •  Registrants •  Based on •  Separate by •  Return on actions audience Investment •  Based on action •  Friend invites •  Customers •  Prospects •  Based on •  Based on •  Based on •  Coupon D/Ls audiences audience audience •  Customers •  Customers •  Customers •  Store lookups •  Prospects •  Prospects •  Prospects 22
  • 23. Case Study Client: Stage Stores Audiences: female teens in underserved markets Blog Objective: drive in-store purchases Strategy: back-to-school social networking site Comments 23
  • 24. Now What? Once you have a Plan and a ROI model   Document the assumptions   Show the expected economic impact   Show your execs / client how it works Communicate your successes   Internally   Externally Continue to think about “whatʼs next” 24
  • 25. In Closing… We all know the value is there… …We need to focus on what works …we need to be able to show it Success requires…   Methodical approach   Analytical rigor   Creativity   Common sense Today Iʼve showed you one approach   Many others exist – feel free to share! Letʼs stay in touch!   Check out our blog http://blog.spurinteractive.com   Join me on Facebook and LinkedIn   Email me steve@spurinteractive.com 25
  • 26. About the Presenter Steve Latham is the founder and CEO of Spur Interactive, a strategic interactive marketing agency. In this role, Steve has planned and managed successful campaigns for leading brands, including ConocoPhillips, FedEx Kinko's, Southwest Airlines, The Scooter Store, and Medical Hair Restoration. Steve is an accomplished industry lecturer and an active member of the business and non-profit community. Steveʼs articles on interactive strategies have been published by MediaPost and iMedia Connection and he has been quoted in PR Week, Fortune and CNN.com. Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma. You can find Steve on Facebook or email him at steve@spurinteractive.com . 26