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

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
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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