Making Sense of the Performance Landscape presented by Aidan Mark

1. Making Sense of the
Performance Landscape
Digiday Media Buying Forum
26th March 2019

2. Performance media works hardest alongside
long term brand building

3. We also know that media effectiveness is
falling, driven by a rise in short-termism

4. Havas
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What is the right metric to
properly evaluate performance
marketing effectiveness?

5. Advertising should seek to create value
Havas
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Costs of media are very clear
The benefit of media investment
is subjective… it depends on how
you measure it
Value = Benefit - Cost

6. In performance marketing we tend to
quantify value with an attribution model
Havas
_6

7. Digital CPA is not a success metric
 Efficiency… not effectiveness
 Final action…. not influence
 Cost… not value
 Paid… not organic
 All actions… not incremental actions
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8. Median Baseline = 85%
Digital attribution models do not reflect causation. Baseline
is the largest driver of sales for mature brands
Source: Havas Econometric Studies 2016-2018

9. Applying the triage concept to
performance marketing effectiveness
Triage in Medicine…
Triage in Marketing…
Source: The Choice Factory, 2018

10. Sales tracked in low CPA channels are often
caused by other factors
Navigational use of
Search Engines
Viewability &
‘Banner Blindness’
Deal Hunters
Brand Search
High Propensity
Display (i.e.
retargeting)
Affiliates

11. Brand PPC delivers low CPA, but investment
increases blended CPA
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000
£7,000
£8,000
£9,000
£10,000
£0.00 £10.00 £20.00 £30.00 £40.00 £50.00 £60.00
WeeklyBrandPPCInvestment
Blended CPP (all channels)
Source: Energy Brand

12. Partially due to its cannibalisation of organic
sales
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
£0 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000
%ofTotalProductsfromSEO
Weekly Brand PPC Investment
Source: Energy Brand

13. Generic PPC has high CPA but investment is
strongly correlated with total sales
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
£40,000
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
WeeklyGenericPPCSpend
Weekly Total Products (all channels)
Source: Energy Brand

14. Which requires a broader, integrated
measurement approach
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MMM (ECONOMETRICS) ATTRIBUTION & CHANNEL REPORTS TESTING & EXPERIMENTATION
• Base contribution
• Unpicks incrementality
• Non marketing
contribution
• Strategic budget allocation
• Granular view of digital
influence
• Detailed level of budget
distribution
• Evidence for causation
• Enables optimisation
and first view of test and
learn results

15. Incremental growth is the best indicator of
success
• Recognises importance of base growth for sustainable success
• Recognises interplay of channels across the customer journey
• Recognises the value of the customers that are acquired and not just the cost
of acquiring them
• Incorporates channel roles in retaining customers
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16. Adjusting this view of performance delivers a
significant change in channel hierarchy
Brand PPC Competitor PPC Generic PPC Affiliates Display Re-
targeting
Display
Prospecting
Linear CPA Incremental Value CPA
Source: Energy Brand

17. A blended planning approach that recognises
full contribution of media
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INTEGRATION INFLUENCE ITERATIONINCREMENTALITY

18. Ongoing hypothesis development to feed a
test and learn programme
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TEST
LEARN
REFINE
ROLL
OUT

19. So…
• Have a clear view of how your objective aligns to genuine
business success
• Ensure you have a metric that closely aligns to that success and
represents incremental growth
• Make use of the right measurement methodology at the right
stage of planning and assessment.
• Continuously iterate and develop a test and learn approach
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