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Analytics - and Choosing your
                              optimization goals




YAHOO! CONFIDENTIAL
   DENNIS R. MORTEN...
Entrepreneur   Author   Blogger   WAA   Yahoo!
Choosing           optimization goals.
                                  Why is this important ?




 DENNIS R. MORTENSEN ...
You must serve the overall
        purpose of the organization
                                 (of course)




DENNIS R. ...
The goals of most organizations are usually set as

                                         KPIs


 DENNIS R. MORTENSEN |...
Are your optimization goals,
                                 KPI duplicates ?




DENNIS R. MORTENSEN | MAY 2010
If optimization goals are
            NOT KPI duplicates, surely they are

  KPI derivatives ?



 DENNIS R. MORTENSEN | M...
If optimization goals are
          NOT KPI derivatives, they must certainly be

    KPI derivative proxies ?



 DENNIS R...
None of the above – then what ?
Certainly not CTR or Visits :-)




    DENNIS R. MORTENSEN | MAY 2010
The further away your optimizations goals are from your organizational KPIs
 – the higher the risk of applying direct harm...
Assuming we have an optimization goal metric,
           that is well aligned with organizational KPIs




* we should be ...
An optimization goal is inheritably aligned with

                               attribution choices
                     ...
Does the optimization goal apply for respectable

      attribution modeling ?




 DENNIS R. MORTENSEN | MAY 2010
Assuming we have perfect organizational aligned goals,
        that can be accurately attributed their fair success




 *...
An online optimization goal in likely to be built into an

    online marketing initiative.

                             ...
Does the optimization goal apply for respectable
           attribution modeling in conjunction with


  Media Mix Modelin...
Example:
   Let’s have a look at how people attack PPC optimization goal setting




DENNIS R. MORTENSEN | MAY 2010
Impressions




DENNIS R. MORTENSEN | MAY 2010
CTR




DENNIS R. MORTENSEN | MAY 2010
Visit-to-Sales Conversion




DENNIS R. MORTENSEN | MAY 2010
Visitor-to-Sales Conversion




DENNIS R. MORTENSEN | MAY 2010
Revenue per Visit



DENNIS R. MORTENSEN | MAY 2010
Revenue per Visitor



DENNIS R. MORTENSEN | MAY 2010
Profit per Visitor



DENNIS R. MORTENSEN | MAY 2010
Lifetime Value of a Visitor


DENNIS R. MORTENSEN | MAY 2010
Customer Lifetime Value


DENNIS R. MORTENSEN | MAY 2010
In conclusion
Setting optimization goals:
    You want to create marketing scenarios,
    where you can predict an organiz...
Want to know more about
     Analytics, Media and Marketing?
VisualRevenue.com/blog or Twitter.com/DennisMortensen
Thank you
Dennis R. Mortensen, Director of Data Insights at Yahoo! | dennis.mortensen@yahoo-inc.com


Blog: http://visualr...
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Analytics - and choosing your optimization goals

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Setting optimization goals: You want to create marketing scenarios, where you can predict an organizational aligned outcome with a high level of confidence.

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Analytics - and choosing your optimization goals

  1. Analytics - and Choosing your optimization goals YAHOO! CONFIDENTIAL DENNIS R. MORTENSEN | MAY 2010
  2. Entrepreneur Author Blogger WAA Yahoo!
  3. Choosing optimization goals. Why is this important ? DENNIS R. MORTENSEN | MAY 2010
  4. You must serve the overall purpose of the organization (of course) DENNIS R. MORTENSEN | MAY 2010
  5. The goals of most organizations are usually set as KPIs DENNIS R. MORTENSEN | MAY 2010
  6. Are your optimization goals, KPI duplicates ? DENNIS R. MORTENSEN | MAY 2010
  7. If optimization goals are NOT KPI duplicates, surely they are KPI derivatives ? DENNIS R. MORTENSEN | MAY 2010
  8. If optimization goals are NOT KPI derivatives, they must certainly be KPI derivative proxies ? DENNIS R. MORTENSEN | MAY 2010
  9. None of the above – then what ? Certainly not CTR or Visits :-) DENNIS R. MORTENSEN | MAY 2010
  10. The further away your optimizations goals are from your organizational KPIs – the higher the risk of applying direct harm. (turning decent marketing initiatives into organizational de-optimization exercises) DENNIS R. MORTENSEN | MAY 2010
  11. Assuming we have an optimization goal metric, that is well aligned with organizational KPIs * we should be home safe, yes ? DENNIS R. MORTENSEN | MAY 2010
  12. An optimization goal is inheritably aligned with attribution choices (multiple online channels, and generally a changing universe) DENNIS R. MORTENSEN | MAY 2010
  13. Does the optimization goal apply for respectable attribution modeling ? DENNIS R. MORTENSEN | MAY 2010
  14. Assuming we have perfect organizational aligned goals, that can be accurately attributed their fair success * we should be home safe, yes ? DENNIS R. MORTENSEN | MAY 2010
  15. An online optimization goal in likely to be built into an online marketing initiative. (mixing online and offline) DENNIS R. MORTENSEN | MAY 2010
  16. Does the optimization goal apply for respectable attribution modeling in conjunction with Media Mix Modeling ? DENNIS R. MORTENSEN | MAY 2010
  17. Example: Let’s have a look at how people attack PPC optimization goal setting DENNIS R. MORTENSEN | MAY 2010
  18. Impressions DENNIS R. MORTENSEN | MAY 2010
  19. CTR DENNIS R. MORTENSEN | MAY 2010
  20. Visit-to-Sales Conversion DENNIS R. MORTENSEN | MAY 2010
  21. Visitor-to-Sales Conversion DENNIS R. MORTENSEN | MAY 2010
  22. Revenue per Visit DENNIS R. MORTENSEN | MAY 2010
  23. Revenue per Visitor DENNIS R. MORTENSEN | MAY 2010
  24. Profit per Visitor DENNIS R. MORTENSEN | MAY 2010
  25. Lifetime Value of a Visitor DENNIS R. MORTENSEN | MAY 2010
  26. Customer Lifetime Value DENNIS R. MORTENSEN | MAY 2010
  27. In conclusion Setting optimization goals: You want to create marketing scenarios, where you can predict an organizational aligned outcome with a high level of confidence AND it’s not easy DENNIS R. MORTENSEN | MAY 2010
  28. Want to know more about Analytics, Media and Marketing? VisualRevenue.com/blog or Twitter.com/DennisMortensen
  29. Thank you Dennis R. Mortensen, Director of Data Insights at Yahoo! | dennis.mortensen@yahoo-inc.com Blog: http://visualrevenue.com/blog Book: http://visualrevenue.com/blog/yahoo-analytics-book Twitter: http://twitter.com/DennisMortensen

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