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Phil Nottingham - How the best strategies start with the right metrics
The document discusses the pitfalls of improper data interpretation in urban planning and digital marketing, highlighting how data-driven decisions can misalign with actual needs, particularly in measuring return on investment (ROI) inaccurately. It critiques the reliance on last-touch attribution and advocates for a more nuanced approach to metrics that aligns with specific goals, channels, and audiences. The author emphasizes that correct measurement practices are essential for effective marketing strategy and genuine understanding of content value.
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Phil Nottingham - How the best strategies start with the right metrics
- 1.
- 3. Boston, Massachusetts is alovely place, but it has a number of problems.
- 4.
- 6. The mayor’s officehad a bright idea to fix this
- 8.
- 10. Except there wasone problem…
- 12. The app wasused primarily by Boston techies, who have a lot more money than the majority of the population
- 13. And so thedata suggested that the potholes in the rich parts of the city were causing the most problems
- 14. GARY KING, HARVARDUNIVERSITY “This was an example of really bad analytics and it’s even worse because it’s the kind of thing that feels like it should work and does work a little bit.”
- 15. What they thinkthey’re solving for The most problematic potholes
- 16. What they’re actuallysolving for Potholes near rich people
- 17. What they shouldbe measuring Potholes in areas with highest density of traffic
- 19. When we don’tknow how to properly read and interpret data, gathering it often causes more problems that it solves
- 20. I think thisis an endemic issue in digital marketing
- 21. 1 Valuing everythingby ROI 3 Problems
- 22. 1 Valuing everythingby ROI 2 Treating all metrics as KPIs 3 Problems
- 23. 1 Valuing everythingby ROI 2 Treating all metrics as KPIs 3 Misaligning goals, channels and content 3 Problems
- 24.
- 25. (Gain from investment- Cost of investment) Cost of investment ROI =
- 26. What you thinkyou’re solving for Efficiency & efficacy of spend
- 27. So, you tryto put a monetary value on all activities
- 28. The most common,and egregious way of doing this is with last touch attribution
- 29. Session 1 Session2 Session 3 Session 4 Last Touch Attribution
- 30. When you uselast-touch attribution, this is how you end up valuing the different parts of your website…
- 31. Product Support BlogPricing Contact Pretty good! Meh? Rubbish Great! Amazing!!!
- 32. MATTHEW ZOOK, UNIVERSITYOF KENTUCKY “Once something gets measured and put into a model then everything starts optimising around that metric.”
- 34. No-one in theirright minds would read this blog post and then buy a car insurance policy, but when you value your content by how it contributes to conversions… then you end up trying to make that happen.
- 35. A slightly betterway to measure value is a linear or time decay model
- 36. Session 1 Session2 Session 3 Session 4 Linear Attribution
- 37. What you thinkyou’re solving for Efficiency & efficacy of spend
- 38. What you’re actuallysolving for Conversions
- 39. But this stillhas issues with any activity designed for brand building.
- 40. Lets take theexample of PR
- 42. Earlier this year,my boss Chris Savage was on BBC news
- 43. Gut feel tellsyou that this is really good PR coverage
- 44. Here’s what thereturn looked like in Google Analytics
- 46.
- 47. Even with linearor even first touch attribution, this looks like incredibly poor return
- 49. But… maybe wecan measure the value of this TV spot instead as if it were a bit of TV coverage
- 51. The way TVwas historically measured was via impressions and how it contributed to brand salience (as determined by recall surveys)
- 52. This was anok way to measure TV 30 years ago, when there wasn’t many other marketing or advertising channels available
- 53. But today… there’sjust too much noise to make such data meaningful. Brands who still measure in this way dramatically over value TV
- 54. AN ALL TOOCOMMON RESPONSE TO THIS PROBLEM “Lets temporarily stop all other brand activities so we can properly measure PR…”
- 55. But we knowthat PR, or advertising, or other brand building activity never works in isolation. Stopping everything necessarily reduces the efficacy of the activity you’re trying to measure.
- 56. So we’re leftwith the conclusion that…
- 57. ROI is justa bad way to measure PR
- 58. Think of itlike a soccer team.
- 59.
- 60. “ROI” in asoccer analogy is the number of goals scored.
- 61. However… you wouldn’tmeasure every player on how many goals they score, or indeed even how they contribute in terms of assists.
- 62. Goal keepers aremeasured by saves, defenders by tackles, Midfielders by passes up the field, and strikers by goals and assists.
- 63. Yet you needa well rounded team, with all the different players, to be successful.
- 64. If you measureeverything by “ROI”, you’re building a team of strikers.
- 65. THE WORST CLIENTSOF ANY SEO AGENCY “How much is this link worth?”
- 66. Anyone in SEOwho’s had this question knows how problematic and widespread this mentality is.
- 67. What you thinkyou’re solving for Efficiency & efficacy of spend
- 68. What you’re actuallysolving for Conversions
- 69. What you shouldbe measuring A sensible proxy for ‘value’
- 70. Effectiveness Sum (DA^2) Efficiency KPIs forPR Sum (DA^2) Cost
- 71. 2 Treating all metricsas KPIs
- 74. Everything needs togo up. We need to get more conversions, more traffic, more links, lower bounce- rate…longer time on page etc…
- 75. What you thinkyou’re solving for Optimising breadth of value
- 76. Here’s an examplefrom a brand I was working with recently.
- 78. They appreciated thepotential value YouTube could bring to their marketing, and so tried to optimise their activity for all possible value
- 79. Views Retention Shares Subscribes Click-Throughs Conversions TrueView Advertising Shorten Video IncludeShare CTA Include Subscribe CTA Include Link to Website Track Click-Through Conversions
- 80. What you thinkyou’re solving for Optimising breadth of value
- 81. This created afrankenstein’s monster of a video that had no value.
- 82. What you’re actuallysolving for Nothing
- 83. What you shouldbe measuring One specific, qualified variable
- 84. Here’s how we’vetried to do this at Wistia
- 87. Effectiveness View-through Conversions Efficiency KPIs forYouTube Advertising View-through Conversions Cost
- 88. 3 Misaligning goals, channelsand content
- 89. Here’s a strategyI was recently handed by a global insurance business
- 90. Strategy Industry Finance Audience Millenials ContentExplainer Videos Channel LinkedIn Goal Sign-ups Distribution Budget £1M
- 91. What you thinkyou’re solving for Integrated Strategy
- 92.
- 93. The problem isthat the strategy had no overlap in the channel, the audience or the content
- 94. Strategy Industry Finance Audience Millenials ContentExplainer Videos Channel LinkedIn Goal Sign-ups Distribution Budget £1M
- 95. No amount ofbudget in the world can make this strategy work.
- 96. What you’re actuallysolving for Discrete, unconnected and fragmented problems
- 97. What you shouldbe doing Creating content on channels appropriate for the goal and audience
- 98. Goal Audience Channel Content Distribution Metrics KPI What are youtrying to achieve? Who are you trying to reach? Where can you reach them? How can you meaningfully engage on this channel? How can you get your content to the right people? What can you accurately measure? What’s a good proxy to measure the goal? Strategy Questionnaire
- 99. Here’s an exampleof how we recently applied this plan to Facebook video
- 101. Goal Audience Channel Content Distribution Metrics KPI Strategy Questionnaire Brand Awareness Peopleworking on video for social media Facebook Competition
- 102. We created atest video to see if there was any latent demand for this kind of content.
- 104.
- 105. Goal Audience Channel Content Distribution Metrics KPI Strategy Questionnaire Brand Awareness Peopleworking on video for social media Facebook Competition Promoted Posts, Word of Mouth
- 106. We then encouragedfurther distribution with a bit of light influencer marketing
- 108. Goal Audience Channel Content Distribution Metrics KPI Strategy Questionnaire Brand Awareness Peopleworking on video for social media Facebook Competition Promoted Posts, Word of Mouth Views, Audio, Retention, Likes, Comments, Shares Page Likes
- 109. Effectiveness Page Likes Efficiency KPIs forFacebook Competitions Page Likes Cost
- 110. This lead toa 30% increase in overall page likes over the duration of the campaign, at a cost of about $2 per like.
- 111. • Bad Data< No Data • Measure everything, but always optimise for just one KPI • Only use ROI for direct response & conversion activities • Ensure alignment of content with channel and audience • Tie everything back to the goal Takeaways
- 112. Thanks! Please feel freeto follow me on the Twitters! @philnottingham