Forward Investment Partners – CEO / CMO Workshop
Martin Brennan – Cem Guralp – Yannick Roux
TV ADVERTISING FOR ONLINE BUSI...
FORWARD PORTFOLIO WORKSHOP #3
H1 2013:
> Raising Capital in 2013
> Online Customer Acquisition: There’s Nothing New Left T...
TODAY:
DATA, INSIGHTS & LEARNINGS
2.15PM PART 1
> TV Ad KPIs from 13 Web Businesses
Cem Guralp, Events Curator, Forward
> ...
FORWARD DATA PRESENTATION
CEM GURALP / 5 September 2013
WE SENT OUT A SURVEY
13 Web CMOs / CEOs
23 Questions
Lots of Data
SIX TAKEAWAYS FROM THE DATA
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4....
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
Web Businesses TV Media Spend
Top spending web companies on TV
COMPARETHEMARKET.COM
MONEYSUPERMARKET.COM
CHURCHILLCARINSUR...
% of Marketing Spend on TV
0% 0% 0%
5% 5%
14%
25% 25%
50%
90%
Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9
Range of Creative Spend
$4k $5k $12k
$30k $30k $40k $45k
$100k
$300k
$350k
£4k £5k £12k
£30k £30k £40k £45k
£100k
£300k
£3...
OTHER CONSIDERATIONS
Coordination with PPC
• “Unleash brand search budget while on TV”
• “TV increases brand searches, so ...
1. TV is part of the mix
2. For Direct Response and Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
WHAT ARE YOUR OBJECTIVES WITH TV?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8
DR
Branding
0% 0% 0%
10%
30%...
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
WHAT KPIs DO YOU TRACK?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Traffic uplift Branded
search uplift
ROI CPA Uplift in
orde...
OBSERVATION PERIOD
• 10 minute initial spike
• Followed by a residual tail
–90 days…?
RESULTS: TRAFFIC UPLIFT
Uplift in Site Traffic Uplift in Branded Search
10% – 60% 8% – 150%
“Depends on Spend”
CPA and LTV RESULTS
CPA LTV
• Similar to other core channels • Same as other paid channels
• Too early to tell but will en...
TOOLS and SOFTWARES...
We use our analytics platform to
monitor visits/revenue
A lot of the data analytics team time
Adwor...
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
ITERATING and OPTIMISING
• “Optimising mobile sign-up flow makes a big
difference”
• “Creative A/B testing”
• “Use smaller...
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
MIXED RESULTS FROM TARGETING
Good Results Bad Results
• “Can be 3x as good when
targeted”
• “Episode specific was very
suc...
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4. Its new(ish) – lots to lear...
AGENCIES ARE ESSENTIAL,
BUT FRUSTRATING
• Everyone we spoke to had used agencies,
• they are necessary
• and this is what ...
SIX TAKEAWAYS FROM THE DATA
1. TV is part of the mix
2. For Direct Response And Branding
3. Measuring is the hard thing
4....
Forward tv event slides v4
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  • When we were researching this topic, one of the things people constantly told us was that they needed real dataso we decided to collect some
  • I’ll be presenting the data, not presenting a theory on how you should advertise on TVWe intend this to be a framework for the discussion laterHopefully, you’ll gain some insights into it
  • There are over 150 web companies represented on the graphWe see at the top end, spend of around 25 millionAt the bottom end it is in the low thouandsTV is now accessibleDefinitely now a core channel
  • So lets look within the room, to data from our surveyWe see that three companies who answered this question…We see people choosing the level of their involvement – probably according to needs/experienceIN ALL, FURTHER EVIDENCE THAT REGARDLESS OF LEVEL…
  • This slide is about creative spend per campaign from within the roomWe see a range within this room of between £4000 and 350,000What do we learn from this?Don’t necessarily need massive budget to test and get results from TV. Clear divide on theory behind creativespendClearly creative spend will be a function of both company and campaign sizebut this is further evidence that TV is accessible and provides RoI at all levels
  • Other considerationsCOORDINATION: TV IS NOT AN ISOLATED CHANNELEveryone says that it impacts on PPC – so we’re interested in thisAnd we’re also interested in social, and what the impact here isWHEN TO STARTThis is a topic which came up a lot in our conversationsWe see 12 year old, established companies who haven’t yet started on TVAmazon started advertising on TV for the first time last year.At the same time we see start-ups using it from the get-go
  • We thought going into this that there were two types of campaign: branding and direct responseWe thought that we would see people going essentially for one or another.However, most interestingly they are not mutually exclusive
  • This chart shows the mix in what you’re are trying to achieve from TVWe have some companies going for complete DR message, using TV to drive sales, registrations or whatever it may be…At the same time we see some using TV to go more for a more brand-centric message but having DR in the mix to ensure some RoIOne respondent said “Campaign has to pay for itself, but branding is the longer term goal.”What influences your choice of objective?Your business modelYour choices will in turn impact on KPIs and measurement…So lets move on to measurement
  • Tracking offline ads is always difficult – this is not newParticular challenge for highly analytical data orientated people who are used to performance channelsWe’ve heard that because of this lack of data, it can be hard to get a mandate from the board to go out and experiment with TVWe’d be interested in hearing about this later on if anyone has any insights…SO LETS LOOK AT HOW PEOPLE ARE MEASURING
  • Metrics everyone is tracking…Site traffic and branded search are unsurprisingly the big ones hereThese are the most obvious and easiestLook to the middle of the graph and companies are trying to track direct response metrics BUT IT IS MUCH HARDER….They are trying to measure key customer value metrics: CPA, LTV and ROISo we know companies track the obvious metrics, but we also have a long tail to the right, of KPIs that some track, and others don’tCompanies are tailoring KPIs for themselves, not going out and looking for KPIs that work for everybody
  • Companies looking for direct response look for a spike 10 minutes after a slotResidual uplift for a period of timeOne of the complaints we see is that this gets lost in the noise around other channelsCumulative effect,90 days, reflects a different objectiveSO LETS LOOK AT THE RESULTS PEOPLE ARE ACHIEVING
  • Across the board we saw meaningful uplifts in traffic regardless of messageBut the extent differs massivelyDepends on spend but also messaging / objectives / call to actionBut we think you are guaranteed some upliftWhatever the uplift, advertising on TV will result in the opening up of new customer segmentsSO IN TERMS OF TRAFFIC, IT WORKS
  • WHAT THIS SLIDE IS SHOWING YOU IS TV CPA AND LTV vs OTHER CHANNELSOn the left side we have CPA metricsAnd you can see that for some, CPA is 40% lower while for others it is 50% higherThis is a wild variationDepends on lots of variables, not least business model and objectivesOn the right we have LTVGenerally harder to track and harder for us to get dataInterestingly we see that the company at the bottom, who’s TV CPA is 50% higher than PPC, finds LTV to 100% higherThereby making the channel very profitable.Evaluating LTV is clearly hugely important
  • We asked what tools people are usingThe information is conspicuous in its absenceWe would love to hear more today about how people are measuring
  • TV is still new and there is a lot to learnOne respondent is quoted as saying: “It's a rollercoaster: we went from great to non-viable to great again in four months...”optimisation is a big part of the game for everyone in the roomif it's 25% of our spend it's more like a 40% of our effort
  • Challenges in optimising for TV were broadLong lead times in getting informationExpense at changing creative were two big considerationsThe ways of optimising are not as concrete as onlineWould be interesting to see in more detail how they did this, if this is you, please share later
  • In general there was a mixbetween broad reach and targeted strategiesAbility to target is one of the main new drivers for TVBut as we’ll see, its not a silver bullet
  • For targeting the options we came across were: Channel, day-part And programme targeting Of these programme targeting is the most effective but hardest to scaleRegional was not effectiveUnless it was a test for a big marketWe have to say that targeting therefore is:Available but hard to get right – see the quote saying “sometimes targeted ads perform worse than non targeted”If right, effective but hard to scaleAND... Interestingly, broad reach was the most consistent driver of growth for half the participants…
  • Everyone had broadly similar experience with TV agencies…They were tricky to manageThey were not data driven – if we think about it, it is probably not in their interest to be…They struggle to think like a PPC agencyIf anyone had a particularly good time with agencies, it would be interesting to hear about…
  • To Recap, these are our six takeawaysTV is definitely worth being involved with over the next few yearsYou don’t have to spend bigIt can be a source of immediate RoILots of opportunities to optimise This means there are substantial opportunities,You’ll now be hearing from people who have taken those opportunities in the recent past
  • Forward tv event slides v4

    1. 1. Forward Investment Partners – CEO / CMO Workshop Martin Brennan – Cem Guralp – Yannick Roux TV ADVERTISING FOR ONLINE BUSINESSES HOW TO GET REAL-LIFE ROI 5 September 2013
    2. 2. FORWARD PORTFOLIO WORKSHOP #3 H1 2013: > Raising Capital in 2013 > Online Customer Acquisition: There’s Nothing New Left To Learn, Right? FUTURE EVENTS: > Maximising LTV: Conversion / Activation, Retention, Revenue, Referral > Product Management: Roles, Job Descriptions and Best Practices > How A Great COO Can Add Value To Your Business > Internationalisation / Localisation for High Growth Web Businesses > Recruiting Engineers Let us know what other topics would be useful: cem.guralp@forward.co.uk TODAY: > TV ADVERTISING FOR ONLINE BUSINESSES: How To Get Real-Life ROI
    3. 3. TODAY: DATA, INSIGHTS & LEARNINGS 2.15PM PART 1 > TV Ad KPIs from 13 Web Businesses Cem Guralp, Events Curator, Forward > Case Studies: Madbid and HPI Madhur Srivastava, Consumer Director, HPI (formerly COO / co-Founder, MadBid) > TV Advertising and Social Media Don O’Leary, Twitter > 5 Things I’ve Learned About TV Advertising For Online Brands James Burgess, CEO, Squadron Media (formerly TV marketing consultant to Moo, Seatwave, Zoopla, eHarmony) 3.30PM COFFEE BREAK 3.45PM PART 2 > Case Study: Secret Sales Robert Moss, CMO > Case Study: Just Eat Mat Braddy, CMO > Case Study: Paddy Power Tom Wyse, Head of Media > Measuring Online Response From TV Advertising Calum Smeaton, CEO, TVSquared 5.00PM DRINKS
    4. 4. FORWARD DATA PRESENTATION CEM GURALP / 5 September 2013
    5. 5. WE SENT OUT A SURVEY 13 Web CMOs / CEOs 23 Questions Lots of Data
    6. 6. SIX TAKEAWAYS FROM THE DATA 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    7. 7. 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    8. 8. Web Businesses TV Media Spend Top spending web companies on TV COMPARETHEMARKET.COM MONEYSUPERMARKET.COM CHURCHILLCARINSURANCE LOVEFILM.COM MATCH.COMDATINGSERVICE LIVERPOOLVICTORIAMOTORINSURANCE ROYAL&SUNALLIANCEMORETHAN EHARMONY.CO.UK THETRAINLINE.COM EXPERIANCREDITEXPERT FINDAPROPERTY.COM TRIVAGO.CO.UKHOTELPRICE… SAINSBURYSMOTORINSURANCE SWIFTCOVERCARINSURANCE HOTELS.COM LITTLEWOODS.COM GUMTREE.COM NPOWER RIGHTMOVE.CO.UK MUSICMAGPIE.CO.UK LIVERPOOLVICMOTORINSURANCEDRTV WOWCHER.CO.UK EBAYONLINETRADING USWITCH.COM EONENERGY ZURICHHELPOINTPENSIONS DIRECTLINEINSURANCESALE PROTECTYOURBUBBLE.COM LIVINGSOCIALWEBSITE REEDEMPLOYMENT AVIVA EBOOKERSTRAVEL NETPLAYTVSUPERCASINO.COM MOTORINSURERSBUREAU 888.COMONLINECASINO WARRANTYDIRECT.CO.UK RIASINSURANCE CASTLECOVER50PLUSINSURANCE WILLIAMHILL HOTELDIRECT.CO.UK STYLISTPICK.COM ONECALLINSURANCE GROUPON.CO.UK LOWCOSTHOLIDAYS.COM SSEJOINIPLAN.CO.UK STVHOLIDAYS.COM PADDYPOWERCASINO.COM S1HOMES SPINANDWIN.COM ALLIANZDIRECT VERNONS.COM ESTHOMEENERGYSCOTLAND CLINTONCELEBRITYFASTCARDS ABBEYINSURANCESERVICES ALLIANZMOTORDRTV ONESTOPPLUS.CO.UK AUTOLINEINSURANCEGROUP YOUVEPULLED.COM CVLIBRARYRECRUITMENT ROXYPALACE.COM COOPENERGY LOVEHONEY.CO.UK MYPROTEIN.COM ASHLEYMADISON.COM BALLISTICBLUE.COMPARTYINVITATIONS REALDEALSFORYOU.COM FINDYOURCREDITUNION.CO.UK TEMPCOVER.COM ZESTIFYSECRETGLOFAKETAN JACKPOTCITYMOBILECASINO EUSPTRANSPARO ICUSAVING.COM INBOXME.CO.UKONLINEDATING JCMDIRECTDIANARING BIDRIVALS.CO.UK TRAVELWORLDPRIVELEGECLUB NIHOTELSFEDERATION £30m
    9. 9. % of Marketing Spend on TV 0% 0% 0% 5% 5% 14% 25% 25% 50% 90% Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9
    10. 10. Range of Creative Spend $4k $5k $12k $30k $30k $40k $45k $100k $300k $350k £4k £5k £12k £30k £30k £40k £45k £100k £300k £350k
    11. 11. OTHER CONSIDERATIONS Coordination with PPC • “Unleash brand search budget while on TV” • “TV increases brand searches, so we up spend” When to start • “What tests have people found most viable?” • “Can you start small? Or do you need to do big splash to get anything out of it?”
    12. 12. 1. TV is part of the mix 2. For Direct Response and Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    13. 13. WHAT ARE YOUR OBJECTIVES WITH TV? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 DR Branding 0% 0% 0% 10% 30% 50% 50% 70% 70% 100% 100% 100% 90% 70% 50% 50% 30% 30% Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Direct Response Branding
    14. 14. 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    15. 15. WHAT KPIs DO YOU TRACK? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Traffic uplift Branded search uplift ROI CPA Uplift in orders / sales LTV Registrations uplift Increase in CTR of paid search ads Brand awareness survey results Increase in onsite conversion rate
    16. 16. OBSERVATION PERIOD • 10 minute initial spike • Followed by a residual tail –90 days…?
    17. 17. RESULTS: TRAFFIC UPLIFT Uplift in Site Traffic Uplift in Branded Search 10% – 60% 8% – 150% “Depends on Spend”
    18. 18. CPA and LTV RESULTS CPA LTV • Similar to other core channels • Same as other paid channels • Too early to tell but will end up: • 1.5x PPC • ~1.35x blended CPA • too early, but will be better than PPC • Varies by market but generally • TV +25% vs paid search • +50% vs other channels • Still working on LTV metrics • Lower than PPC • N/A • 40% lower than PPC • 20% lower than blended CPA • N/A • 50%+ PPC (5%+ blended CPA) • 100%+ PPC (10% blended LTV)
    19. 19. TOOLS and SOFTWARES... We use our analytics platform to monitor visits/revenue A lot of the data analytics team time Adwords and GA
    20. 20. 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    21. 21. ITERATING and OPTIMISING • “Optimising mobile sign-up flow makes a big difference” • “Creative A/B testing” • “Use smaller markets/channels to test performance of different creative” • “Use a 12 week campaign window [to keep creative fresh], and manage frequency”
    22. 22. 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    23. 23. MIXED RESULTS FROM TARGETING Good Results Bad Results • “Can be 3x as good when targeted” • “Episode specific was very successful” • “Great CPLs!” • “50% better response” • “Sometimes targeted ads perform worse than non- targeted – GO FIGURE” • “Targeting was hard to scale” • “Buying cheap has been the biggest driver of performance, not targeting” VERY HIT AND MISS
    24. 24. 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!
    25. 25. AGENCIES ARE ESSENTIAL, BUT FRUSTRATING • Everyone we spoke to had used agencies, • they are necessary • and this is what they had to say: “try to rip you off, so do your research” “don't get online brands” “Both [kinds] are frustrating!!” “Agencies aren’t flexible” “Find an analytical media buying agency” “poor understanding of e-commerce”
    26. 26. SIX TAKEAWAYS FROM THE DATA 1. TV is part of the mix 2. For Direct Response And Branding 3. Measuring is the hard thing 4. Its new(ish) – lots to learn… 5. Targeting; a mixed review 6. Agencies; A necessary evil!

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