Engaging the Who’s
Increase marketing performance 
by concentrating on your best 
customers and prospects 

      Tim Suth...
Living next to the train tracks

                      $112 billion                         of advertising is wasted each ...
The differentiated value of customers



                                30%   of customers deliver the majority of profit...
A look at “who” at world class brands
                       Cadillac                                       American Expre...
…and at leading publishers
                        MSN                                   Yahoo
                     96 MM ...
Like a box of chocolates…

                      •   With most media, you never know who
                          you’re ...
Concentrate ad spend to drive value
 Typical payoff of 3-5x revenue/ad value




                                  7
Concentration Multiplier ROI Illustration
                                   Concentrated       Traditional      Variance
...
What to do now
 Use the concentration multiplier principle to drive ROMI



                                       1. Iden...
Thank You




        The global interactive marketing services company



www.facebook.com    www.linkedin.com   www.twit...
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Engaging The Whos-Increase Marketing Performance

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A presentation made at DMA 2009 in San Diego by Acxiom's Tim Suther, Sr. VP of Multichannel Marketing Services

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Engaging The Whos-Increase Marketing Performance

  1. 1. Engaging the Who’s Increase marketing performance  by concentrating on your best  customers and prospects  Tim Suther SVP, Multichannel Marketing Services Tim.Suther@acxiom.com 001-630-944-0416 www.acxiom.com http://www.linkedin.com/in/timsuther http://twitter.com/timsuther http://www.slideshare.net/TimSuther
  2. 2. Living next to the train tracks $112 billion of advertising is wasted each year in the US alone $4 trillion excess brand valuation 22% of Americans feel advertising is credible…compared to 45% for talk shows 42% of consumer media consumption is online 7% of disposable income is now saved – was 0% 2
  3. 3. The differentiated value of customers 30% of customers deliver the majority of profits 50% Add nothing 20% Cost companies money SAS 3
  4. 4. A look at “who” at world class brands Cadillac American Express UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Hershey Allstate UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments 4 Source: Acxiom comScore (July 2009)
  5. 5. …and at leading publishers MSN Yahoo 96 MM UV’s 148 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments eBay AOL 56 MM UV’s 70 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments 5 Source: Acxiom comScore (July 2009)
  6. 6. Like a box of chocolates… • With most media, you never know who you’re gonna get. – ~80% online ad spend delivered to wrong audience. comScore 2009 • Knowing who determines: – How much to invest…if anything – What to say…without guessing • Most firms… – Over-invest in low value relationships – Under-invest in high value relationships 6
  7. 7. Concentrate ad spend to drive value Typical payoff of 3-5x revenue/ad value 7
  8. 8. Concentration Multiplier ROI Illustration Concentrated Traditional Variance Campaign Cost Impression Volume 43,750,000 100,000,000 Cost per Thousand $ 8.00 $ 3.50 Total Campaign Cost $ 350,000 $ 350,000 $ - Revenue Generated Revenue/conversion $ 375 $ 250 Clickthrough Rate 0.113% 0.075% Conversion to Click Rate 5.00% 2.00% Latent/viewthrough conv % 50% 50% Total Conversions 3,691 2,250 Total Revenue $ 1,384,277 $ 562,500 $ 821,777 146% higher Contribution From clickthrough $ 572,852 $ 25,000 Total Contribution $ 1,034,277 $ 212,500 $ 821,777 387% higher Revenue per Ad Dollar From clickthrough $ 1.64 $ 0.07 Total Revenue/Ad Dollar $ 3.96 $ 1.61 $ 2.35 146% higher 8
  9. 9. What to do now Use the concentration multiplier principle to drive ROMI 1. Identify customer value 2. Invest proportionally 3. Find/recognize & engage accordingly 4. Measure acquired value 9
  10. 10. Thank You The global interactive marketing services company www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com /acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom 10

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