Vertical Portal (eg. Fashion site) – use a functional message Mass Media Portal (eg. News site) –use a eye-catching creative Crazy Ad’s good for branding but poor on conversion
Measurement module 100704
Session 3:Auditing Agency Performance
Todays Agenda• Integrated Media Evaluation – Offline Vs. Online – Changes to the Purchase Funnel – Best Practices – Case study: How to attribute credit for success?• Interpreting Plans and Reports – Success factors – What to look for – Reporting typology• Creative Testing – Testing Methodology’s – Best practices
Media Integration Background• Offline media is a lean back medium, online is lean forward.• TV is often a shared experience, digital is a personal experience.• Many people are online while they consume other media.• Research proves that there is a strong link with offline media driving online activity i.e. a TV ad triggers curiosity in a product, the consumer uses the internet (often a search engine) to find out more.• China* TV content is often consumed online e.g. Toudu, Youku etc. Many under 30’s don’t consume analog media.
Offline vs. Online Advertising Key Differences Offline Online• Limited channels • Vast number of sites• typically few free to air • Long tail stations • Global• Local-centric • Precise measurements• Estimated measurements • Measure quality• Measure R&F
Offline vs. Online Reach & FrequencyReach - the number of different people who are exposed an advertising message at least onceFrequency - the number of times they are exposed to the messageOffline advertising • Buy “Media Impressions” – based on overall reach • Calculate frequency by how many opportunities each person will see the adOnline advertising • Buy “Ad Impressions” – actual unique impressions on the ad • Calculate frequency by tracking each repeat visits using “cookies” technology
Online R & F MethodologyMeasuring Online Share Of Voice (SOV)% of the publisher’s total inventory (based on impressions) in a givenperiod of time.•Measurement might not be consistent from site to site – is SOV relativeto: • Impressions? • Unique visitors? • Particular media targets? • Total impression volume available on the site?Issues:•Disabled / deleted “Cookies” in browsers•Shared computer terminals•Publisher counting tactics and methodology differences
Social Media & the Purchase Funnel• While the shape of today’s funnel can take many forms depending on the author, its clear that a feedback loop that is powered by consumer generated content is an ever present addition to this model.• Word of Mouth has always been important in influencing consumer decisions, the difference is that digital media has amplified this voice and empowered consumers to listen at a higher volume.• Instead of asking 2 neighbors which soap they use you can go online and find out what thousands of people think.
Digital Age Model is Non-Linear• Today the impact of digital media has created multiple new tools for consumers to use to find out more information about potential purchase on their own terms.• Blogs, search engines, BBS, video, comments/rankings, podcasts all offer opinions about brands that are separate to the message form the brand owners
The New McKinsey Model• McKinsey rejects the linear approach in favor of a circular model of ongoing exposure leading to a trigger moment• Consumers begin with a narrow consideration set due to ad clutter and being time poor. Then a trigger occurs when the consumer decides they want to buy something new• Once they decide to buy the move into active evaluation. Here the brands considered increases (opp of linear model) and intense research is undertaken- checking out sites, paying more attention to certain kinds of relevant media they already consumer.• Third stage is closure. This is where the consumer goes to purchase although many have not made a final decision on which item to buy.Post Purchase experience dictates the degree of loyalty the consumer has: – Active loyalty: Prefers same brand and will recommend to others. – Passive loyalty: Is comfortable with repurchase but also open to other choices
Making 2+2=5 via Media Integration• Effectiveness of offline media can be measured by immediate performance of online media.• Both mediums should ALWAYS be synchronized (flighting, messaging, placement) to deliver optimal synergies.• Online media can be used to increase ROI of offline media.• The critical link in this approach is SEM- keyword bidding, copy & linking pages must be comprehensive to catch and redirect qualified traffic from offline.• In this way online media supports and leverages the larger offline media spend to make it more effective
How the integrated road to purchase worksTV Ad: 8pm to 10pm June 4th Internet Ad: 8pm to 10pm June 4th? For the treasure hunt to succeed clues must be left along the way
Measuring Success• Media channels must be evaluated together to determine how they effect one another.• Performance should be monitored before, during & after a campaign to establish baseline performance and to enable benchmarking.• If an ongoing PPC campaign usually yields 5,000 clicks per month (the baseline) but records 10,000 clicks during an offline media burst, then the campaign contribution is 5,000 clicks. Scrutiny should also be paid to changes in other digital media performance to assign credit appropriately.• An ongoing challenge is to determine the impact of offline awareness building which drives subsequent online media response.• If a TV campaign is driving a lot of brand searches on Baidu why do a PPC campaign when you can get organic clicks for free?
Critical Success FactorsEffectiveness and ROI depend on… – Creative strategy – Targeting – Ad type – Ad Size – Frequency – Website and landing pages Optimizing these variables makes the difference between success and failure
What to look for in a media plan• There must be a clear strategy that explains how the tactics will work together in harmony to achieve the objective.• The online strategy should roll up into the overall integrated campaign strategy.• Does the media approach support the creative strategy? Often they do not compliment one another.• Is the plan a ‘cut and paste job’ from a previous campaign or a different client?• Does this agency/team consistently recommend the same publishers? If so why and are there better alternatives?
What to look for in a creative strategy• Is there a clear rationale justifying the creative concept?• Ask yourself, does this strategy make YOU think more highly of this product/brand? What about someone that you know well that is part of the target audience profile?• Does the online creative approach support and leverage the offline thinking so that it translates online?• If larger sizes are underperforming smaller sizes its likely the concept or execution is sub-optimal.• Multiple resizes are common in this market, each additional edition should take no more than 20-30 mins of billable hours.• If the creative concept is a western import, once initial translation is done there should be no extra charges.
What to look for in tracking reports• GAP Analysis: Did the campaign begin and end on time and if it’s a CPD campaign was each flighting verified?• Formatting: Manually check the formulas and that the fields all tally. Look closely at ‘Gross’ and ‘Net’ media costs.• Value added: How much of the final delivery is bonus and what is the nature of it- often its remnant inventory that’s dumped at the back end of a campaign to meet quotas.• Ad serving: This is usually marked up by the agency. It should be no more than $0.07 CPM. If the agency is using allyes it may be free in return for media booking fees collected from media owners.• Quality score: Media owners will usually pad a proposal with unsellable inventory to get to a desirable eCPM. Evaluate each line item for prominence, exclusivity and scale.• Optimization: All publishers allow mid campaign changes to placements and creative. Ideally performance should always improve over time
Tips on interpreting reportsReport Type Purpose Daily Monitor delivery – assist in identifying delivery issues (or weekly) Monitor performance – LUM analyze performance across a 2 Fortnight weeks span on sites and placements In depth analysis on entire campaign performance and takeEnd Campaign learnings into future campaigns
Type of ChartsTypical Charts• By Banner Size• By Placement• By Day Part• By Unique Users• Post Click Tracking• Impressions vs. CTR• Interaction Rate vs. Impressions• Interaction Rate vs. CTR• CPC vs. CPM
28 Type of Charts Post Click Tracking 0.60% 0.52% 0.50%Percentage 0.40% 0.46% 0.29% 0.31% 0.30% 0.19% 0.20% 0.17% 0.07% 0.10% 0.14% 0.10% 0.00% 1 2 3 Conversion Rate 0.52% 0.29% 0.31% Post Imp Conversion 0.07% 0.10% 0.17% Post Click Conversion 0.46% 0.19% 0.14% Attack
29 Type of Charts Impressions vs. CTR 350000 0.60% 300000 0.50% 250000 0.40% 200000 0.30% 150000 0.20% % R C T 100000 ) (mnopser 0.10%iI 50000 0 0.00%
30Type of ChartsInteraction Rate vs. Impressions 7,000,000 6.00% 6,000,000 5.00% 5,000,000 4.00% 4,000,000 3.00% 3,000,000 2.00% 2,000,000mnopseriI 1.00% % 1,000,000 R o n c a e r ) ( t i I 0 0.00% Lowyat Mainpage Lowyat Forum Hotmail msn messenger
33Tips on interpreting reports Snapshot in time Over time (1 month cumulative) (across 1 month)Placement Analysis Run Charts- measures Impression vs. Click - measures Impression vs. CTR- assist in analyzing placements / creative - across a set time period - assist in identifying trends or patterns
34 Tips on interpreting reportsPlacement Analysis by Site• Some sites / creative combination will be more effective in reach / impressions (e.g.: in the example below “Gamer ROS”– ad placements may appear on any pages of the target site)• Some sites / creative combination will be more efficient in generating click-through (e.g.: below “Gamer Home Page”) 900 1.00% 845 800 774 0.90% 0.88% 0.80% 700 0.70% Impressions (0000s) 600 0.59% 0.60% 500 CTR % 0.50% 400 0.40% 300 300 273 281 0.29% 0.30% 0.24% 200 169 0.20% 0.10% 100 51 0.10% 47 0.08% 0.05% 16 0.05% 0.01% - 0.00% MSN MSN GameBase GameBase Yahoo W retch Gamer W retch Gamer Home Game / Home Home Games Online Home Forum ROS Page Movie / Page Page Home Photo Page Imp (0000) 273 281 47 300 16 774 169 51 845 CTR 0.59% 0.29% 0.10% 0.08% 0.24% 0.05% 0.05% 0.88% 0.01%
35 Tips on interpreting reports Placement Analysis by Banner Type • Performance of banner types can be compared by Impressions vs. CTR • CTR is typically reflective of the effectiveness of placement and/or creative • CPC can be included in the analysis to measure placement efficiency 60,000,000 0.20% 0.18% 52,765,442 0.18% 50,000,000 0.17% 0.16% 40,000,000 0.15% 0.14% CTR (%) Impression 0.12% 30,000,000 0.10% 17,887,617 0.08% 20,000,000 0.06% 10,000,000 0.04% 4,158,155 0.02% 0 0.00% Expandable Polite Standard bannerBanner typesare grouped Impression 4,158,155 52,765,442 17,887,617together for CTR 0.18% 0.15% 0.17%easier reading
36Tips on interpreting reportsRun Charts – identify problems and trends – Is there a significant trend or pattern that should be investigated? – Are they just normal process variations? • Look at data for a long enough period of time (at least 2 weeks is recommended for online), so that a “usual” range of variation is evident • Is the data within the usual range of variation? • Is there a daily pattern? Weekly? Monthly?
37Tips on interpreting reportsIdentifying Trends – Upward and downward (seesaw) movements are common – typically 6 or more consecutive jumps in the same direction (up or down) indicates a trend – In display ads, a downward trend typically signifies “creative wear out” Creative change
38 Tips on interpreting reportsReport date range – Notice behaviour shifts – over weekends, holidays, etc. 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2 0 1 /1/2 7 2 0 1 /3/2 7 2 0 1 /6/2 7 7 0 2 1 7 0 4 2 1 7 0 5 2 1 0 7 2 1 7 0 8 2 1 7 0 9 2 1 / / / / / / 7 0 4 2 1 7 0 5 2 1 7 0 6 2 1 0 7 2 1 7 0 8 2 1 7 0 9 2 1 7 2 0 3 1 / / / / / / / weekend Cricketnext imps Mouthshut imps MSN media imps NNE education imps Tech2 imps Yahoo imps In the example above, we can observe that business tech sites gain more impressions over weekends.
Tips on interpreting reportsAdopt a holistic view – Do not interpret data in isolation In the example above, CTR was extremely high on Oct 24th. On closer examination, we find that impression was very low for that day, therefore resulting in an anonymity in the reports. As it turns out there were technical difficulties on that site in that particular day.
Example of Testing for Banner• Effectiveness & Efficiency vary by site and format High CTR not Equal High Action
Background to Testing• Digital is a highly measureable medium, *everything can be tracked and analyzed• The more tracking data you have the more learning’s you have, however data overload can obscure this.• Rigorous testing and analysis is time consuming and is often seen as only a ‘nice to have’ beyond basic metrics.• The key question is how much testing is optimal to provide the most cost effective outcomes.• There are eye tracking studies, creative A/B and multivariate testing, media trials and panel based surveys all to consider.• This aspect of digital marketing is the most important and undervalued: Why Invest in a medium famous for its unique measurability when you don’t leverage its core advantage???• Offline thinking (i.e focus group think) at the C-Level still precludes this elephant in the room from ever being properly acknowledged.
8 Step Closed Loop Creative Testing Approach1. The Create StepCreate six different ideas, executed in four sizes each2. The Measurement StepMeasure the success of the banners.3. The Selection and Speculation StepEvaluate each banner and try to assess why some workedand others didnt by size, idea, call-to-action, execution, etc.Why are the top/bottom performers winning/losing?4. Codify Learning’s and AssumptionsBuild on industry best practices to develop a set of client-specific &audience-specific best practices. Refine and record what is working5. Create and Measure AgainCreate a second raft of banners, based on learning’s from previousPhase. Evaluate performance using same criteria6. Select Top Performers AgainAnnotate learning’s and optimize7. Leveraging the LibraryRerun top performing banners from round 1 and 2. Run the tweaked oroptimized mid-level banners from round 1 and 2. Mix in new banners .8. Leveraging the Library Long TermPerform bi-weekly or monthly measurement reviews ,Ongoing measurement and analyticsfollowed by optimization and codified learning combine to continue driving performance.
Main Types of Land Page Testing •A/B Testing •Multivariate Testing Multivariate tests (MVT) allow you to test multiple elements of a single page at the same time. A/B tests as simplified versions of them.
6 Key Web Page Testing Mistakes1. Using the wrong type of test (A/B vs. multivariate test)A/B tests are good for alternate designs of an entire page, whereas multivariate tests are helpful indetermining the most successful elements at different locations on a page.2. Testing too many elementssoftware solutions permit thousands or even millions of combinations on a single page. Testingfewer than 100 scenarios can boost conversion rates from 4% to 15% in a matter of a few months.3. Running tests that take too longKeep track of external factors and understand that they might have an impact on your results.Minimize the time it takes to run your experiments to four weeks at the most.4. Failing to monitor your test as it takes placeDigital is not a set and forget medium. Closely monitor experiments to decide if you shouldeliminate some elements when there is enough evidence.5. Failing to conduct follow-up experimentsDesigning follow up experiments, and learning which elements worked and which elements did not,is at the heart of conversion optimization.6. Thinking that testing is a silver bulletTesting is a great tool to increase your conversion rates However, it is only one step in the process.Bottom Line: Select the right type of test to conduct based on the number of visitors and otherdata collected from analytics. Limit the number of scenarios through a holistic approach to testing.Get beyond single-digit improvement by continuing to test. Approach any project from a number ofdifferent angles, because testing alone will not maximize your results.
Eye Tracking TestingEye tracking works by reflecting invisible infrared light onto an eye, recording the reflectionpattern with a sensor system, and then calculating the exact point of gaze using a geometricalmodel. Once the point of gaze is determined, it can be visualized and shown on a computermonitor. The point of gaze can also be used to control and interface with different machines.This technique is referred to as eye control.
Summary• Offline and online media are fundamentally different mediums which are only truly effective when strategically synchronized.• Everything is measurable with digital, the key is to determine what the most important metrics are to focus on and then apply as actionable learnings.• The ‘devil is in the details’ with digital: strive to look beyond the obvious and question every single detail RUTHLESSLY to uncover the true value of a program.• If a chart, statistic or concept does not make sense in less than 10 seconds to you its not meaningful.(KISS)• ABT (Always Be Testing): digital thinking changes every 6 months and useable learnings must be deployed to make 2+2=5.• Each of you together at R3 are Chinas most important thought leaders in making our marketing industry more effective, more respected and more important. Its up to you to make it happen!