Measurement Matters Thoughts for Building a Better Compensation Model Search Engine Strategies March 24, 2009
How I got here…
Future Conversations <ul><li>“ You mean you used to have ‘log on’ to the internet?”  (circa 2009) </li></ul><ul><li>“ You’...
<ul><li>“ The only constant is change” Heraclitus </li></ul><ul><li>“ Not everything that can be  counted counts... and no...
Change is Here <ul><li>“ Advertisers are aggressively shifting their spend to even more interactive,  measurable  formats,...
Process <ul><li>Spoke to Fortune 500 advertisers in insurance, financial services & travel </li></ul><ul><li>Interviewed d...
Interview Conclusions <ul><li>Agencies </li></ul><ul><ul><li>Fortune 500 advertisers less interested in change in compensa...
Interview Conclusions <ul><li>Advertisers </li></ul><ul><ul><li>Fortune 500 advertisers concerned changing compensation co...
SWOT Analysis Strengths Weaknesses Opportunities Threats <ul><li>Measurability </li></ul><ul><li>Cost per action </li></ul...
Smart advertisers will… <ul><li>Apply same measurement standards as available offline to online media </li></ul><ul><li>Co...
Smart agencies will… <ul><li>Measure everything </li></ul><ul><li>Use “best of breed” tools to enhance performance and red...
Thanks! @tomcuthbert [email_address]
Upcoming SlideShare
Loading in …5
×

"Measurement Matters"

1,223 views
1,137 views

Published on

My presentation at the Search Engine Strategies conference in New York, March 2009

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,223
On SlideShare
0
From Embeds
0
Number of Embeds
18
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

"Measurement Matters"

  1. 1. Measurement Matters Thoughts for Building a Better Compensation Model Search Engine Strategies March 24, 2009
  2. 2. How I got here…
  3. 3. Future Conversations <ul><li>“ You mean you used to have ‘log on’ to the internet?” (circa 2009) </li></ul><ul><li>“ You’re telling me someone THREW a newspaper on your driveway?” (circa 2019) </li></ul><ul><li>“ What’s America Online?” (circa 2029) </li></ul><ul><li>Are you kidding me… they used to pay a percentage of spend to buy digital media? </li></ul>
  4. 4. <ul><li>“ The only constant is change” Heraclitus </li></ul><ul><li>“ Not everything that can be counted counts... and not everything that counts can be counted” Albert Einstein </li></ul><ul><li>MEASUREMENT MATTERS… </li></ul>
  5. 5. Change is Here <ul><li>“ Advertisers are aggressively shifting their spend to even more interactive, measurable formats, as providers struggle to move &quot;beyond advertising&quot; to new forms of communication that combine the ROI characteristics of direct marketing with the brand characteristics of traditional advertising .” (IBM survey 3/23/09) </li></ul><ul><li>Advertisers are cutting budgets (83% up to 15%) </li></ul><ul><li>Execs expecting recovery to take 18 months </li></ul>
  6. 6. Process <ul><li>Spoke to Fortune 500 advertisers in insurance, financial services & travel </li></ul><ul><li>Interviewed digital media agency executives from Top 50 firms </li></ul><ul><li>Read publications to try and gauge landscape and identify trends </li></ul><ul><li>Looked at available tools to measure performance and create buying efficiency </li></ul>
  7. 7. Interview Conclusions <ul><li>Agencies </li></ul><ul><ul><li>Fortune 500 advertisers less interested in change in compensation model, but 15% is dead </li></ul></ul><ul><ul><li>Creative methods (‘kickers’) being considered </li></ul></ul><ul><ul><li>Outsourcing is a new trend for agencies </li></ul></ul><ul><ul><li>Tools (cost passed to client) are not optional </li></ul></ul><ul><ul><ul><li>Workflow management </li></ul></ul></ul><ul><ul><ul><li>Reporting and analytics </li></ul></ul></ul><ul><ul><ul><li>Campaign/ Inventory insight </li></ul></ul></ul>
  8. 8. Interview Conclusions <ul><li>Advertisers </li></ul><ul><ul><li>Fortune 500 advertisers concerned changing compensation costs brand management </li></ul></ul><ul><ul><li>More transparency from providers is key </li></ul></ul><ul><ul><li>Better communication “prove worth” </li></ul></ul><ul><ul><li>Considering spending MORE online, “trackability” </li></ul></ul><ul><ul><li>Open to new compensation models, but objectives must align completely </li></ul></ul>
  9. 9. SWOT Analysis Strengths Weaknesses Opportunities Threats <ul><li>Measurability </li></ul><ul><li>Cost per action </li></ul><ul><li>Targeting and flexibility </li></ul><ul><li>ROI focused </li></ul><ul><li>Collapse of traditional media </li></ul><ul><li>Enhanced tools </li></ul><ul><li>Reach, while growing is small </li></ul><ul><li>Lack of standards </li></ul><ul><li>Brand building </li></ul><ul><li>Traffic quality </li></ul><ul><li>Cost structure/ margin </li></ul><ul><li>Economy </li></ul>Online
  10. 10. Smart advertisers will… <ul><li>Apply same measurement standards as available offline to online media </li></ul><ul><li>Consider creative compensation strategies that align with their objectives </li></ul><ul><li>Listen… it is a changing world </li></ul><ul><li>Leverage the brand assets </li></ul><ul><li>Hold the agency’s feet to the fire </li></ul>
  11. 11. Smart agencies will… <ul><li>Measure everything </li></ul><ul><li>Use “best of breed” tools to enhance performance and reduce friction / cost </li></ul><ul><li>Look beyond the “Big Two” to find quality </li></ul><ul><li>Keep the clients goals in focus </li></ul><ul><li>Protect and build the brand </li></ul><ul><li>Embrace the change and get creative </li></ul>
  12. 12. Thanks! @tomcuthbert [email_address]

×