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Performance Marketing: Back to basics (Lucian Despoiu for Marketing in Direct)


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Online marketing is a vast and comprehensive domain. It’s not a question on IF we do online marketing, but on HOW we do it. Lately, there is a shift on the market towards Performance Marketing, originating from a need to see measurable results from campaigns, from the over-saturation of the online marketing and from C-level attention and engagement in digital operations.

This presentation will allow you to find out more on how you can set up an efficient, measurable campaign and about the skills and competences needed to do performance marketing. You will also learn more on different type of campaigns there are and what are the relevant KPIs you must have in consideration when starting a specific campaign.

This presentation is created by Lucian Despoiu, Managing Partner at Kondiment Group, and was delivered at the “Marketing In Direct” International Conference in Bucharest.

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Performance Marketing: Back to basics (Lucian Despoiu for Marketing in Direct)

  1. 1. Performance Marketing: Back to Basics Lucian Despoiu
  3. 3. 1. CONTEXTToday it’s not a question on IF we do online marketing,but on HOW we do itThe Shift: Not just presence, but marketing under a performancematrix.
  4. 4. 1. CONTEXTHow the market looks today:• Atomization of media channels• We live in an economy of attention• Everything goes both social and mobile• Content has been re-elected as king• Excess data available• Serious money in digital ecosystem
  5. 5. 1. MOVING TO PERFORMANCE MARKETINGPressures to move to performance:• Pressure to be more profitable• Vast number of users in the digital ecosystem• C-level attention and engagement in digital operations
  6. 6. 2. KEY POINTS Before we start Strategic Online-Offline integrationSet the business objectives and continue to track the impact of marketing along the organization
  7. 7. 2. KEY POINTSBefore we start Right (online) KPI setting Will elaborate later…
  8. 8. 3. WORKING WITH THE AGENCY OR IN-HOUSE?Relevant set of skills for THE (performance marketing) AGENCY:• Analytics Competencies• Performance/cross media buying• Conversion optimization experts• Industry experts/consultants• Online sales/e-commerce experts (processes and technology)
  9. 9. 3. WORKING WITH THE AGENCY OR IN HOUSE?When building IN-HOUSE:• A critical mass of digital generated business• Focus/ Attention of the C-Level• Dedicated team
  10. 10. 4. PERFORMANCE MARKETING SKILLS• (digital) Strategy: Identifying online opportunities Identifying your customers digital needs Creating the vision Developing the strategy Communicate it properly internally
  11. 11. 4. PERFORMANCE MARKETING SKILLS•Marketing & Communication: ( consumer hobbits) Search Engine Marketing Social Media Marketing Display Advertising E-mail Marketing Online PR Mobile
  12. 12. 4. PERFORMANCE MARKETING SKILLS• Technical (build): Applications development Content Management Systems (CMS) Enterprise Solutions Development and integration Frontend development
  13. 13. 4. PERFORMANCE MARKETING SKILLS• Creative and strong (deep) analytics: Analytics A/B and MVT Testing HeatMap (LinkMap and ClickMap) Usability Audits Conversion Optimization
  14. 14. 5. THE DISCIPLINES Media management / buying
  15. 15. 5. THE DISCIPLINES PPC RTB Display Affiliates SEO Social EmailAwarenessInterestAcquisitionRetention Strong Impact Some Impact
  16. 16. 5. THE DISCIPLINES Attribution Model
  17. 17. 5. THE DISCIPLINES % of Contracts Quality - Contribution Customer life Customer Lifetime Value NPV Sales Channel Hardware Mix Flexibility CPA € (months) € € 2012 2011 Budget Display 28.3 Slow 79 310 1925 1355 30% 27% PPC 29.6 Fast 55 189 1440 1115 27% 26% FACEBOOK 24.6 Discontinued 45 301 805 630 8% 1% Not Yet Available WEB HOMEPAGE 27.6 Fast 42 164 995 675 32% 35% SEO 23.0 Medium 27 345 275 225 2% 4% MOBILE 23.0 Medium 47 225 855 675 1% 7% Cross-Channel
  18. 18. 5. THE DISCIPLINES: Media BuyingRe-targeting in a Cross Channel Environment
  19. 19. 5. THE DISCIPLINESUsability 
  20. 20. 5. THE DISCIPLINESConversion optimization Content experiments: - A/B testing - MVT
  21. 21. 5. THE DISCIPLINESAnalytics Professional implementation (events) E-mail alerts Visitors tracking Conversion goals (sales funnel) Business Intelligence E-commerce tracking
  22. 22. 6. TYPES OF CAMPAIGNSA classification of online campaigns: 1.Awareness campaigns 2.Lead generation campaigns 3.Retention campaigns 4.Sales generation campaigns 5.E-mail marketing campaigns 6.Database collecting campaigns 7.Reputation management campaigns
  23. 23. 6. TYPES OF CAMPAIGNS1.Awareness campaignsExamples: site launch, rebranding, product launch.Complex campaigns requiring a mix of strategiesSpecific performance indicators:- Number of people that have viewed a message(page, advertorial, video, image, presentation)- Number of registered reactions to the message(comments, likes, shares etc)- Number of members that have adhered communities (Facebookfans, Twitter followers etc)- Number of people involved in specific actions(game participants)- Website traffic
  24. 24. 6. TYPES OF CAMPAIGNS2. Lead Generation CampaignsCampaigns that aim to bring new clients on siteSpecific performance indicators:- Number of leads- Cost per lead- Lead rate- Number of leads transformed into clients
  25. 25. 6. TYPES OF CAMPAIGNS3. Retention campaigns Aimed to retain existing customersSpecific performance indicators:- A registered growth in sales/ client- Number of new clients- Cost/new client
  26. 26. 6. TYPES OF CAMPAIGNS4. Sale generation campaignsIncrease the number of actual sales for your customer baseSpecific performance indicators:- Number of new clients- Cost/client- A growth in the general number of sales- A growth in sales per a specific product- Sale rate- ROI (profit = revenue – expenses)
  27. 27. 6. TYPES OF CAMPAIGNS5. Database collection campaigns Obtain contacts which you can use later on in your campaigns.Specific performance indicators:- Number of contacts- Cost/contact
  28. 28. 6. TYPES OF CAMPAIGNS6. E-mail marketing campaignsTargeting a specific e-mail database and sending out a messageSpecific key performance indicators:- Open rate- Click rate- Bounce rate- Final conversion rate
  29. 29. 6. TYPES OF CAMPAIGNS7. Reputation management campaignsManage a company’s reputation through specific means.Specific performance indicators- Position of positive results in search engines- Engagement on the positive or neutral pages- An increase of sales
  30. 30.
  31. 31. 7. THE FUTUREThe future of Performance Marketing: VERTICALIZATION
  32. 32. 8. THE BIG PICTURE
  33. 33. KONDIMENT GROUPFull-service interactive agency: www.kondiment.roIn our portofolio:
  34. 34. CONTACT US OUR DETAILS Sevastopol 17 C, Sector 1; 010991 Bucharest - Romania Tel: +40 21 317 01 34; Fax: +40 21 317 01 35
  35. 35. THANK YOU!