Achieving the Optimal B2B Media Mix:<br />A Model for Cross-Channel Planning<br /> <br />Eric Anderson<br />VP of Emerging...
B2B media planning is in crisis. <br />The downturn has prompted belt-tightening, but b2b marketers lack good models for k...
The proof the crisis is the huge disparity between where money is being spent and where b2b marketers find success.<br /> ...
It’s easy for b2b marketers to get entrenched in poorly performing techniques, with no good data to take them in new direc...
But as complex as b2b media planning can be, it still largely follows the simple formula of the “S” curve.<br /> <br />A c...
But as complex as b2b media planning can be, it still largely follows the simple formula of the “S” curve.<br /> <br />A c...
The S-curve is pretty simple to manage and measure when you’re working in only one medium – especially a measurable one.<b...
It becomes insanely complex when you’re working in multiple channels. <br />If you can’t isolate the contribution of each ...
Like baldness treatments, various methods have been tried – but none of them are entirely convincing.<br /> <br />
Method 1: In b2b marketing, as in consumer advertising, good old-fashioned reach & frequency still holds sway.<br /> <br /...
 <br />Method 1: In b2b marketing, as in consumer advertising, good old-fashioned reach & frequency still holds sway.<br /...
Method 2: Control for the incremental impact of adding another channel.<br /> <br />You can do that sequentially…<br /> <b...
Method 2: Control for the incremental impact of adding another channel.<br /> <br />Or you can do it simultaneously, one c...
Method 3: Ask prospects which channel delivered them, then optimize based on results. <br /> <br />Problem: This solution ...
Method 4: Go behavioral – figure out how your target consumes media, then divide accordingly<br /> <br />Problem: better t...
Media planners mostly agree: to truly know what works, you need to create a backwards-looking model that analyzes the impa...
But that can be difficult, painful, and expensive. Most media buyers would prefer to use limited model data combined with ...
In digital media-buying, though, we have the luxury of knowing (almost) exactly what works. <br /> <br />
The real break-through came when we moved beyond the “last click” fallacy and could measure the contribution of every expo...
We can create precise sequences of ads and serve them based on the prospect’s actions and past exposure. <br /> <br />
We’re no longer beholden to clicks – we can measure the actions of prospects who saw ads but showed up later. <br /> <br />
Digital also has the ability to look at the b2b marketing funnel in its true complexity and measure the impact of each act...
So if digital is so good at creating b2b media mix models, what can it do for offline media?  <br /> <br />
Answer: LEAD WITH DIGITAL to create the offline media model.<br />Test digital venues based on goals, then map those venue...
Example: Create a digital campaign based on driving early awareness leading to direct conversion. <br /> <br />x<br />I se...
Create a 90-day test that determines the optimal number of combined awareness and offer impressions to produce a conversio...
Video
Webinar offer</li></ul>Impressions per Target<br />
Feed this data into your cross-channel planning. Apportion your impressions according to what actually worked.<br /> <br /...
By using digital to model the media mix, we may finally be able to answer John Wanamaker’s famous dilemma:<br /> <br />x<b...
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Achieving the Optimal B2B Media Media Mix

  1. 1. Achieving the Optimal B2B Media Mix:<br />A Model for Cross-Channel Planning<br /> <br />Eric Anderson<br />VP of Emerging Media<br />White Horse<br />
  2. 2. B2B media planning is in crisis. <br />The downturn has prompted belt-tightening, but b2b marketers lack good models for knowing which belts to tighten and which to loosen.<br /> <br />
  3. 3. The proof the crisis is the huge disparity between where money is being spent and where b2b marketers find success.<br /> <br />
  4. 4. It’s easy for b2b marketers to get entrenched in poorly performing techniques, with no good data to take them in new directions. And who has the budget to experiment?<br /> <br />
  5. 5. But as complex as b2b media planning can be, it still largely follows the simple formula of the “S” curve.<br /> <br />A campaign that defines its success by lift – e.g., lead gen or brand awareness – will have an S as its goal.<br /> <br />Point of equilibrium where you’re delivering the right number of impressions for max ROI<br />Leads<br />Threshold where you’re delivering the minimum impressions to impact leads<br />Impressions per Target<br />
  6. 6. But as complex as b2b media planning can be, it still largely follows the simple formula of the “S” curve.<br /> <br />A campaign that defines success by reduction – e.g., in cost per lead – will have a reverse S.<br />In both cases, we’re chasing that point of maximum efficiency before performance tails off. <br /> <br />Cost-per-Lead<br />Point of Equilibrium<br />Impressions per Target<br />
  7. 7. The S-curve is pretty simple to manage and measure when you’re working in only one medium – especially a measurable one.<br /> <br />Ramp down impressions!<br />Leads<br />Ramp up impressions!<br />Impressions per Target<br />
  8. 8. It becomes insanely complex when you’re working in multiple channels. <br />If you can’t isolate the contribution of each channel, how do you know how when you have the right mix?<br /> <br />With all these channels, can we even find equilibrium before the campaign ends? Probably not.<br />Leads<br />Ramp up direct mail? Print? TV? A little of each? A lot of one and a little of the others? Yes for one customer segment, no for others? And when will we know if it worked? <br />Direct Mail, PPC, Print, TV Total Impressions per Target<br />
  9. 9. Like baldness treatments, various methods have been tried – but none of them are entirely convincing.<br /> <br />
  10. 10. Method 1: In b2b marketing, as in consumer advertising, good old-fashioned reach & frequency still holds sway.<br /> <br />See here, old boy – Reach and Frequency work just fine! <br />You figure out your target audience, then how many impressions each channel can give you for that audience, then you divvy up your media that way!<br />Traditional Media Buyer<br />
  11. 11.  <br />Method 1: In b2b marketing, as in consumer advertising, good old-fashioned reach & frequency still holds sway.<br /> <br />R&F is so last century, 1950s Guy!<br />B2B companies are mostly considered about performance, not awareness. You still need separate models to figure out what R&F is best for your goals. <br />Contemporary Media Buyer<br />
  12. 12. Method 2: Control for the incremental impact of adding another channel.<br /> <br />You can do that sequentially…<br /> <br />Source: The Ephron Consultancy<br />Problem: B2B customers don’t actually consume media as if they’re wearing out a pair of shoes. <br /> <br />
  13. 13. Method 2: Control for the incremental impact of adding another channel.<br /> <br />Or you can do it simultaneously, one channel at a time.<br /> <br />Source: Avenue/Razorfish, “Actionable Analytics” <br />Problem: How expensive and complicated is this going to get when you’re dealing with 4 or 5 channels? <br /> <br />
  14. 14. Method 3: Ask prospects which channel delivered them, then optimize based on results. <br /> <br />Problem: This solution remains stuck in the “last click” rut – it only accounts for the last exposure the user had, not the cumulative impact.<br /> <br />
  15. 15. Method 4: Go behavioral – figure out how your target consumes media, then divide accordingly<br /> <br />Problem: better than R&F, but it’s still directional. You don’t know how each channel actually performed, so you’ll still waste money. <br /> <br />
  16. 16. Media planners mostly agree: to truly know what works, you need to create a backwards-looking model that analyzes the impact of each channel.<br /> <br />
  17. 17. But that can be difficult, painful, and expensive. Most media buyers would prefer to use limited model data combined with educated guesses. <br /> <br />Zenith Optimedia’s Global Ad Forecast<br />Which is exactly why the shift to new media is nerve-wracking: the old models were already limited for b2b, and now those are no longer reliable. <br /> <br />
  18. 18. In digital media-buying, though, we have the luxury of knowing (almost) exactly what works. <br /> <br />
  19. 19. The real break-through came when we moved beyond the “last click” fallacy and could measure the contribution of every exposure.<br /> <br />Source: Avenue/Razorfish, “Actionable Analytics” <br />
  20. 20. We can create precise sequences of ads and serve them based on the prospect’s actions and past exposure. <br /> <br />
  21. 21. We’re no longer beholden to clicks – we can measure the actions of prospects who saw ads but showed up later. <br /> <br />
  22. 22. Digital also has the ability to look at the b2b marketing funnel in its true complexity and measure the impact of each action. <br />Paid Media Impression<br />Check industry reviews and forums<br />Google search for partners<br />Visit partner sites<br />Connect through forum<br />Visit Site<br />Attend webinar<br />Ask questions of other customers<br />Convert<br />
  23. 23. So if digital is so good at creating b2b media mix models, what can it do for offline media? <br /> <br />
  24. 24. Answer: LEAD WITH DIGITAL to create the offline media model.<br />Test digital venues based on goals, then map those venues to their offline counterparts. <br /> <br />Direct Mail<br />TV<br />Radio<br />PR<br />OFFLINE<br />Outdoor<br />Newspaper<br />Trade Pubs<br />Awareness Preference Lead<br />Sponsored Content<br />Trade Shows<br />Paid Search<br />Webinars<br />ONLINE<br />Social<br />Video<br />
  25. 25. Example: Create a digital campaign based on driving early awareness leading to direct conversion. <br /> <br />x<br />I see that Manufacturer X has a new solution coming out.<br />I get it – their new solution is a whole new take on Category Y. <br />I have to take a look at this solution.<br />
  26. 26. Create a 90-day test that determines the optimal number of combined awareness and offer impressions to produce a conversion. <br />Then you’ve not only got your S curve, you also know which venues produced it. <br /> <br />x<br />Optimal impression path: two takeovers plus offer.<br />Leads<br />Users exposed to a sequence of ads:<br /><ul><li>Display
  27. 27. Video
  28. 28. Webinar offer</li></ul>Impressions per Target<br />
  29. 29. Feed this data into your cross-channel planning. Apportion your impressions according to what actually worked.<br /> <br />x<br />Cross-Channel Mix<br />
  30. 30. By using digital to model the media mix, we may finally be able to answer John Wanamaker’s famous dilemma:<br /> <br />x<br />I know half of the money I spend on advertising is wasted. <br />The problem is, I don’t know which half. <br />Answer: It’s the half you’re not modeling. <br /> <br />x<br />
  31. 31. Recommendations<br /> <br />The most important thing, whether cross-channel or single-channel, is to know your S-curve. <br />Next most important: go beyond R&F and allocate according to goals and the behaviors that accompany them. <br />But to truly optimize your marketing mix: you need to know what works based on real data and be able to divvy your budget accordingly.<br /> <br />
  32. 32.  <br />THANK YOU.<br />Eric Anderson<br />VP of Marketing<br />White Horse<br />eanderson@whitehorse.com<br /> <br />

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