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Marketing Evolution




    Digital's cross media play: the secret to
    shifting more share
    Digiday: June 26, 2012




         rex@marketingevolution.com

                 rexbriggs
    image3.png




1                                                                    Marketing Evolution
                                                MarketingEvolution.com | CONFIDENTIAL
Marketing Evolution: What We Do For Marketers
                                                                          Forecast




                                                                            Plan



     1. Forecast sales based on different levels of marketing
        spend, while determining the impact of external shocks, like
        a spike in gas prices, on sales.
     2. Determine the optimal level of total marketing spend to
        maximize profits and optimal media mix.
                                                                       Measure/Monitor
     3. Ensure best practices to ensure optimal performance from
        each media.
     4. Measure campaign performance to determine when a
        campaign is under-performing, and what to do to fill the gap
        so goals can still be achieved.

35                                                                              Marketing Evolution
The Most Broadly Validated Solution for ROI Management
     Validated by industry groups, leading academics, and marketing research associations.

                                              Leading Independent Marketing & Research Associations
                                                – The ARF (Advertising Research Foundation) in coordination with
                                              -ANA (Association of National Advertisers)
                                              -AAAA (American Association of Advertising Agencies)

                                              Leading Independent Academics (Partial List)
                                                – Steven Levitt, University of Chicago, Author, Freakonomics
                                                – Kirthi Kalayanam, digital and retail leader, University of Santa Clara

                                              Media Companies & Trade Associations
                                                – IAB (Interactive Advertising Bureau)
                                                – Magazine (MPA, Time Inc, Conde Nast, Meredith, etc.)
                                                – TV (Turner, Martha Stewart, MTV Networks, etc.)

                                              Best Practice Reviews
                                                –   Corporate Executive Board, (B2C & B2B - US, Europe)
                                                –   Forrester
                                                –   ESOMAR “Best Practices” Wiley & Sons
                                                –   Journal of Advertising Research




                       Serve CMOs: Plan budget, apply
                        best practices, measure ROI.

36                                                                                                             Marketing Evolution
Three Approaches To
   Budget Planning

• ABBS

• CPM

• SIRFs
What Can You Do With A SIRF?




                                              Unit Sales Due to
                                              Advertising




                             $1.0




    image3.png




1                rex@marketingevolution.com                       Marketing Evolution
Three Approaches


      1                2
                           CPM & R/F         3 SIRFs
                           based planning



     ABBS

                                            Sales




3                                                   Marketing Evolution
What are SIRFs?




                      Theory of the ROI:
                      People use the media, and see ads.
                      These ads influence their perception and
                      behavior.
                      •Each subsequent exposure has some
                      diminishing return




                      Lots of devices, and formats, which each
                      have different impact curves, and pricing.




4                                                           Marketing Evolution
Key Components of ROI Software
    Calculating marketing ROI for various channels uses impact (lift by frequency of exposure),
    media reach/frequency, and CPM




             +                                                                   Budget Allocation




             +                  Media Costs
                                •   CPM by lever
                                •   CPC by lever



             =
    Impact Per Dollar Spent




5                                                                                         Marketing Evolution
DIGITAL's share of the mix




                      Sales

                              $15,000,000
       Total Budget




                               Digital Advertising

                                      Video
                                   10% Games
     Other Media
                                21% 9%
                                            10%/   Social
                               15%
                                      28%
                                             Apps


7                                                           Marketing Evolution
So, how do you get
 more of the mix?
Three Approaches


      1                           2                  3 SIRFs


     ABBS

                                                    Sales

                         CPM & R/F based planning




            “How do I know it works?
            .




3                                                           Marketing Evolution
The Secret To Get
         More Of The Mix
   • Be in the system

   • Innovate and push
     best practices

   • Remove friction to
     get more budget


Case example: Net Shelter
Digital's cross media play: the
  secret to shifting more share...




• Discussion

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DMS: Marketing Evolution

  • 1. Marketing Evolution Digital's cross media play: the secret to shifting more share Digiday: June 26, 2012 rex@marketingevolution.com rexbriggs image3.png 1 Marketing Evolution MarketingEvolution.com | CONFIDENTIAL
  • 2. Marketing Evolution: What We Do For Marketers Forecast Plan 1. Forecast sales based on different levels of marketing spend, while determining the impact of external shocks, like a spike in gas prices, on sales. 2. Determine the optimal level of total marketing spend to maximize profits and optimal media mix. Measure/Monitor 3. Ensure best practices to ensure optimal performance from each media. 4. Measure campaign performance to determine when a campaign is under-performing, and what to do to fill the gap so goals can still be achieved. 35 Marketing Evolution
  • 3. The Most Broadly Validated Solution for ROI Management Validated by industry groups, leading academics, and marketing research associations. Leading Independent Marketing & Research Associations – The ARF (Advertising Research Foundation) in coordination with -ANA (Association of National Advertisers) -AAAA (American Association of Advertising Agencies) Leading Independent Academics (Partial List) – Steven Levitt, University of Chicago, Author, Freakonomics – Kirthi Kalayanam, digital and retail leader, University of Santa Clara Media Companies & Trade Associations – IAB (Interactive Advertising Bureau) – Magazine (MPA, Time Inc, Conde Nast, Meredith, etc.) – TV (Turner, Martha Stewart, MTV Networks, etc.) Best Practice Reviews – Corporate Executive Board, (B2C & B2B - US, Europe) – Forrester – ESOMAR “Best Practices” Wiley & Sons – Journal of Advertising Research Serve CMOs: Plan budget, apply best practices, measure ROI. 36 Marketing Evolution
  • 4. Three Approaches To Budget Planning • ABBS • CPM • SIRFs
  • 5. What Can You Do With A SIRF? Unit Sales Due to Advertising $1.0 image3.png 1 rex@marketingevolution.com Marketing Evolution
  • 6. Three Approaches 1 2 CPM & R/F 3 SIRFs based planning ABBS Sales 3 Marketing Evolution
  • 7. What are SIRFs? Theory of the ROI: People use the media, and see ads. These ads influence their perception and behavior. •Each subsequent exposure has some diminishing return Lots of devices, and formats, which each have different impact curves, and pricing. 4 Marketing Evolution
  • 8. Key Components of ROI Software Calculating marketing ROI for various channels uses impact (lift by frequency of exposure), media reach/frequency, and CPM + Budget Allocation + Media Costs • CPM by lever • CPC by lever = Impact Per Dollar Spent 5 Marketing Evolution
  • 9. DIGITAL's share of the mix Sales $15,000,000 Total Budget Digital Advertising Video 10% Games Other Media 21% 9% 10%/ Social 15% 28% Apps 7 Marketing Evolution
  • 10. So, how do you get more of the mix?
  • 11. Three Approaches 1 2 3 SIRFs ABBS Sales CPM & R/F based planning “How do I know it works? . 3 Marketing Evolution
  • 12. The Secret To Get More Of The Mix • Be in the system • Innovate and push best practices • Remove friction to get more budget Case example: Net Shelter
  • 13. Digital's cross media play: the secret to shifting more share... • Discussion

Editor's Notes

  1. Audience: work for brands, agencies? Sell media? 10 years ago, coined cross media - xmos studies, dove nutrium,
  2. Let me start with last acronym, SIRF... And a quick note about my new book. Some of you may have seen the cover story ad age devoted to the book - it is a best seller on amazon and b&n, and Wharton has declared they'll make it required reading. The book is really a story of marketers journey to use ROI data at the core of marketing management. The idea is to make the complex understandable, and accessible, because I believe it is incredibly empowering. And, to help people get to the core of decision making.
  3. The effectiveness vs. efficiency it is both...
  4. Imagine a world… (present the OUTPUT – a pie chart, software and an whitepaper) The Cable % solution – guideline for spending. Internet (same thing with XMOS studies).