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Online Measurement and Attribution was presented at the 12/10 Integrated Marketing Summit by Steve Latham, founder of Envoy Analytics. ...

Online Measurement and Attribution was presented at the 12/10 Integrated Marketing Summit by Steve Latham, founder of Envoy Analytics.

To receive a copy please contact Steve via Twitter at http://twitter.com/stevelatham

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  • 'Online Measurement and Attribution' was presented at the 12/10 Integrated Marketing Summit in Dallas. If you'd like to receive a copy please contact me!

    Steve Latham
    Twitter http://twitter.com/stevelatham
    LinkedIn: http://linkedin.com/in/stevelatham
    Facebook: http://facebook.com/slatham
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Online Measurement and Attribution Presentation Transcript

  • 1. Online Measurement and Attribution !The New Imperative for Interactive MarketingSteve LathamEnvoy Analytics@SteveLatham
  • 2. A long time ago…There were two types of advertisers   Brand marketers (ATL) Strategic Direct Response (BTL)   TacticalBrand marketers bought display   Metrics: reach, frequency and cost per impression   Measured by: Ad Server   Assumed premium inventory = more qualified reach Display   View-through was interesting but not importantDirect marketers bought PPC and 3rd party email   Metrics: Leads / Sales, Cost Per Click, Cost Per Action   Measure by: Site Analytics (crediting source of last click) SearchEveryone knew the rules and everyone was happy Online Measurement and Media Attribution. © Envoy Analytics 2010 2
  • 3. Today…Digital goes through the line   Strategic and tactical Awareness 
 (Display, Email, Social,   Branding and DR are merging Mobile, Fat Tail Search)   Social spans all channels Consideration
Integrated campaigns target all stages ! (Display, Mid-Tail Search, Social)of the funnel   Can’t win by harvesting demand (search) Preference
 (Long-Tail   Must create demand (display, social, mobile) Search, Social Email)Focus on ROI is greater than ever Action
   Each investment must stand on its own (Social, Search, Email)Yet… metrics and tools are not sufficient Online Measurement and Media Attribution. © Envoy Analytics 2010 3
  • 4. Marketing Conversation #1 How is our online advertising working? Great Boss! Wonderful! How do the results look? CTRs are up and CPCs are down! Engagement is increasing and conversion rates are improving! We’re also What the *#^@*! are you nominated for a Webby! talking about? Online Measurement and Media Attribution. © Envoy Analytics 2010 4
  • 5. Marketing Conversation #2 How is our online advertising working? Great Boss! Wonderful! How do the results look? We’re generating $7 in sales for every $1 spent while increasing brand awareness by 75%. Can you handle a bigger budget? Online Measurement and Media Attribution. © Envoy Analytics 2010 5
  • 6. The Unrealized OpportunityGoal: Effective and Efficient Measurement and ReportingThe Reality:   Reports rarely meet client needs   How is our paid media performing?   How is our social media contributing?   What is the ROI?   What is working (and what is not)?   Few have integrated cross-channel view of results   Most view results in silos   Few can see beyond clicks, CTRs and last-click attribution   Very few can measure impact of social media   Media ops are complicated, challenging and expensive   Data planning, coding, trafficking, ad serving, reporting Online Measurement and Media Attribution. © Envoy Analytics 2010 6
  • 7. ChallengesWe now know…   Awareness matters   Clicks aren’t very important   8% of users contribute 80%   Ads are effective without clicks   Can’t give credit to the last click   Assists are just as important   Site analytics miss a lot   Cookie deletion & multiple devices   Tools are still lacking   Calculating offline sales is hard! Yet… measuring impact and showing ROI is critical Online Measurement and Media Attribution. © Envoy Analytics 2010 7
  • 8. The Solution (?)There is no silver bulletRoadmap for success:1.  Define specific objectives2.  Define campaign actions and metrics 3.  Measure the right results4.  Translate results into value5.  Communicate results in terms CXOs understand (ROI)Here’s how to do it with digital media Online Measurement and Media Attribution. © Envoy Analytics 2010 8
  • 9. 1. Define Specific ObjectivesObjectives must be SMART   Specific: awareness, transactions and sales   Measureable actions: transactions and revenue   Attainable: 20% increase over last year   Relevant: tie directly to CXO’s objectives   Time-bound: will take place this monthTips:   Think from CXO’s perspective   Document them   Communicate them 9 Online Measurement and Media Attribution. © Envoy Analytics 2010 9
  • 10. 2. Define Actions and MetricsCampaign actions and metrics (e.g.)   Primary: registrations, sales   Secondary: goal pages,! long visits, downloads, etc.   Online vs. Offline: coupons,! survey resultsAssign Value to Actions (e.g.)   Average sale = $1,500   Conversions = $150 (assuming 10% of conversions close)   Visitors = $3.00 (assuming 2% of visitors “engage”) Online Measurement and Media Attribution. © Envoy Analytics 2010 10
  • 11. 3. Measure the Right Results   Direct KPIs   Attributable results 11 Online Measurement and Media Attribution. © Envoy Analytics 2010 11
  • 12. Direct KPIsBasic Metrics Engagement metrics   Impressions   Pages viewed per visit   Clicks   Time on site   Visits   Goal Pages   Page views   Registrations   Transactions Social Media Metrics   Follows / Fans   Likes / Comments   Mentions   Viewing content   Sharing / Posting 12 Online Measurement and Media Attribution. © Envoy Analytics 2010 12
  • 13. Sample Report: Campaign Summary Look at: 1. Campaign KPIs by Vendor and Source 2. Graphical overview of visits and conversions by source Online Measurement and Media Attribution. © Envoy Analytics 2010 13
  • 14. Day-Parting Look at: 1. Performance by day 2. Performance by time of day Online Measurement and Media Attribution. © Envoy Analytics 2010 14
  • 15. Sample Report: Paid Search Look at: 1. Comparative performance each search engine 2. KPIs: clicks, impressions, spend, CTR, CPC, actions, CPA Online Measurement and Media Attribution. © Envoy Analytics 2010 15
  • 16. Sample Report: Keyword Performance Look at: 1.  Comparative performance for top 20 keywords 2.  Traditional KPIs: clicks, spend, impressions, CTR, CPC Online Measurement and Media Attribution. © Envoy Analytics 2010 16
  • 17. Sample Reports: Display Metrics Look at: 1. Comparative stats for each vendor & creative 2. KPIs: spend, impressions, clicks, CTRsAds Online Measurement and Media Attribution. © Envoy Analytics 2010 17
  • 18. Social Media KPIs Online Measurement and Media Attribution. © Envoy Analytics 2010 18
  • 19. Attribution 101Online Measurement and Media Attribution. © Envoy Analytics 2010 19
  • 20. Attributing Credit: The New Imperative  Decision cycles are not linear   Only 20% of post-impression ! conversions follow clicks (see chart)   Conversions follow numerous! interactions, e.g.: •  5-7 impressions precede a visit •  2-3 visits precede an action   Credit is usually attributed to last click   Rewards Search   Punishes Display, Email and Social  The Goal:   Identify all interactions that precede! each conversion   Attribute value to those touch points (“Attribution Analysis”) Online Measurement and Media Attribution. © Envoy Analytics 2010 20
  • 21. Sample Engagement Path What we can measure via ad server and site analytics: Impression Impression Impression Impression Visit Visit Visit / Action Display Display E-Mail Display Paid Organic Direct Nav Vendor #1 Vendor #2 3rd party Vendor #3 Search Search Category term Brand / GeoDay: 0 15 30 The “direct nav” lead was preceded by 4 ads and 2 searches Without these insights, you can’t make informed media decisions Online Measurement and Media Attribution. © Envoy Analytics 2010 21
  • 22. Attribution MethodologiesThere are two primary methodologies for attribution:   Algorithmic modeling: analyzing log files and other data to correlate impact)   Typically done after the fact in batches   Analyzing visitor records: assessing all interactive touch points that precede a visit or conversion   Requires synching of ad server and site analytics data   We like to look at Attribution for Visitors as well as Conversions Online Measurement and Media Attribution. © Envoy Analytics 2010 22
  • 23. Attribution via Visitor RecordsStep 1 - Recast Actions* by Source (*actions = visit, conversion etc.)   Quantify the number of touches that preceded each action   Assign value to each touch point (e.g. 7 impressions = 1 click)   Recast the number of touches and assign credit proportionally   See a more accurate picture of Display’s impact on results Online Measurement and Media Attribution. © Envoy Analytics 2010 23
  • 24. Attributing Cost Per Action (CPA)Step 2 – Based on Recast Actions, calculate revised Cost PerAction for each Source Online Measurement and Media Attribution. © Envoy Analytics 2010 24
  • 25. Attribution for Visitors Takeaways •  Direct and Natural get lift from Display advertising •  Key Insight: 12% of Organic visitors influenced by Ads Online Measurement and Media Attribution. © Envoy Analytics 2010 25
  • 26. Attribution for Conversions Takeaways: •  Direct and Natural get lift from Display •  Key Insight: 6.5% of Organic conversions exposed to Ads (6.4 touchpoints) Online Measurement and Media Attribution. © Envoy Analytics 2010 26
  • 27. Sample Report: Attribution by Vendor Key Takeaways •  Some vendors were more effective in creating demand than last-click CPA would indicate •  More accurate comparison of the impact of each display media buy •  Some “dogs” were actually top performers Online Measurement and Media Attribution. © Envoy Analytics 2010 27
  • 28. Attribution RecencyTakeaways:•  60% of visits occurred within 1 day•  Took 9 days to reach same % of Conversions Online Measurement and Media Attribution. © Envoy Analytics 2010 28
  • 29. Social Media Attribution!(How is it done today?) Online Measurement and Media Attribution. © Envoy Analytics 2010 29
  • 30. Advertising Equivalency Value (AEV)Borrowing from playbook of PR firms…   Estimates value of by comparing to cost of an ad   Size of the mention   Reach of the post   CPM grossed up for “editorial value”   Has some shortcomings:   It’s hard to gauge true reach   All mentions are not equal •  Sentiment / Tone •  Length / depth •  Credibility of the writer   When to use it:   When client is already used to this approach   When you have no other means  Online Measurement and Media Attribution. © Envoy Analytics 2010 30
  • 31. Market Testing To isolate the impact of social media, conduct a test   Define strategy for a test campaign:   Geographic market   Specific product, service or offer   Define the test and the control groups   Execute campaign and measure relative lift:   Site traffic: visitor geos, site sections, specific pages   Conversions, leads, sales, etc. Online Measurement and Media Attribution. © Envoy Analytics 2010 31
  • 32. Use SurveysAsk customers if they have:   Been to your web site?   Been to your Facebook page?   Followed you on Twitter?Compare results to control group Online Measurement and Media Attribution. © Envoy Analytics 2010 32 32
  • 33. How We Should Measure Social ROIIn a perfect world, we would:   Connect the dots between results and social interactions   Within Twitter stream and on Facebook pages   Blog and related social mentions   ReTweets, Mentions, Likes, Favorites, Shared Content   Integrate social engagements into ! campaign reports   Attribute credit for social assists   Assign economic value   Calculate ROIMany have tried.Not many have succeeded. Online Measurement and Media Attribution. © Envoy Analytics 2010 33
  • 34. Connecting the Dots in Social MediaHow We Do Social Media Attribution   Index URLs where your Brand is being mentioned   Facebook, Twitter, YouTube, etc.   Blog mentions, online articles, etc.   Compare Index to browser history for each visitor Browsers indicated which URLs you’ve seen before   Record matches (i.e. the purple links)   Pass matches into reporting system Online Measurement and Media Attribution. © Envoy Analytics 2010 34
  • 35. Measuring Social Media’s Impact 351 (9.4%) of visits previously interacted on social media sites Online Measurement and Media Attribution. © Envoy Analytics 2010 35
  • 36. Social Media Attribution – Top URLsShows which URLs arevisited the most beforecoming to the site Online Measurement and Media Attribution. © Envoy Analytics 2010 36
  • 37. The Goal: Cross-Channel Attribution Social The Holy Grail: Measure Attribution of Paid, Owned and Earned Media Online Measurement and Media Attribution. © Envoy Analytics 2010 37
  • 38. 4. Translate Results Into ValueTo measure ROI, you first have to calculate the valueDetermine how Actions  Intent (offline purchase) Action Value Site Visits Indicates awareness Goal Page Views Indicates consideration Long Visits Indicates consideration Conversions Indicates preferenceForecast 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 Online Measurement and Media Attribution. © Envoy Analytics 2010 38
  • 39. Engagement ROI Methodology Project Normalize Divide by Define Assign Value for (average) Cost or Metrics Close Rates each action Values investmentSuch as: Forecast: Project Values: Strengthen by: Net it out:•  Impressions For each Metric: For each Metric: •  Eliminate •  Return on outliers Spend (ROS)•  Visits •  What % will buy? •  Revenue •  Return on•  Returning Visitors •  What % will •  Margin Investment influence a (ROI)•  Goal Page Views purchase? •  NPV•  Conversions Online Measurement and Media Attribution. © Envoy Analytics 2010 39
  • 40. Engagement Funnel / ROI Model AWARENESS
 (Visits) CONSIDERATION
 (Long Visits, Goal pages) PREFERENCE
 (Register) Online Measurement and Media Attribution. © Envoy Analytics 2010 40
  • 41. 5. Communicate Results Effective Communication is a Must   Communicate results that matter   Communicate them in a way CXOs will understand   Use terms they use   Leads, Opportunities, Sales, Customers, Margin   ROS, ROI, NPV   Use Charts and Dashboards   But have supporting data Online Measurement and Media Attribution. © Envoy Analytics 2010 41
  • 42. Case Studies B2C Regional Furniture Retailer   Integrated media campaign (15 million impressions and 145,000 visits per month)   Display attribution resulted in 98% lift vs. last-click analysis (46% drop in CPA)   PPC attribution resulted in 14% lift (16% drop in CPA) B2B Service Provider   Integrated media campaign (*10 million impressions and 15,000 visits per month)   Display attribution resulted in 88% lift over last-click reporting (47% drop in CPA)   PPC attribution resulted in 6% lift over last-click report (6% drop in CPA) Online Measurement and Media Attribution. © Envoy Analytics 2010 42
  • 43. More Case Studies Client: Local Community College   8-week display media campaign   Display Attribution produced in 280% lift in Actions vs. last-click reporting   Cost per conversion fell from $95 (last-click) to $18 (attributed) Client: Provider of Regional Energy Services   10-week campaign using display and 3rd party email   Display Media cost per conversion fell from $147 (Last-click) to $28 (attributed)   Email cost per conversion fell from $50 (last-click) to $33 (attributed) Online Measurement and Media Attribution. © Envoy Analytics 2010 43
  • 44. In Closing…  The bar is being raised… we have to do better.  If you do it right, you’ll see much higher ROI  Employ this 5-step approach and your budgets will grow!Let’s stay in touch!   Facebook.com/slatham   Twitter @spurinteractive   LinkedIn.com/in/stevelatham 44 Online Measurement and Media Attribution. © Envoy Analytics 2010 44
  • 45. About the PresenterA thought leader in digital media, Steve Latham is the founder of Envoy Analyticswhich provides advanced measurement, attribution and reporting of online mediaas a service. In short, Envoy offers better analytics and deeper insights intointeractive campaigns, while reducing the cost and complexity of mediameasurement. Prior to launching Envoy, Steve founded Spur Interactive, a digital marketingagency that specialized in strategic planning and execution of integrated mediacampaigns. In this role, Steve planned and executed successful campaigns forleading brands, including FedEx Office, Continental Airlines, ConocoPhillips andThe Scooter Store.Steve is an accomplished industry lecturer and thought leader. Steve speaksfrequently at industry events including Search Engine Strategies, Online MarketingSummit, Integrated Marketing Summit and Interactive Strategies. Steve’s articleshave been published by MediaPost, Online Media Daily, iMedia Connection,Marketing News and Bizjournals.com. Steve has been quoted in B2B Magazine,PR Week, Fortune and CNN.com.Steve received an MBA from Harvard Business School and a BBA from theUniversity of Oklahoma. You can read Steve’s articles at blog.spurinteractive.comand at OnlineMarketingConnect.com. http://facebook.com/slatham http://twitter.com/stevelatham www.linkedin.com/in/stevelatham Online Measurement and Media Attribution. © Envoy Analytics 2010 45