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Building a 2012 Marketing Budget

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Metrics, Dashboards, KPI's & Best Practices

Published in: Business, Technology

Building a 2012 Marketing Budget

  1. Building a 2012Marketing BudgetMetrics, Dashboards,KPIs & Best Practices
  2. TwLin itter Jam ked In @j htt amie VP ie St Ma ev p:/ /lin s rke en ked tin in. c g om /in /ja mi es
  3. Marketing in 2012
  4. Analytics
  5. Marketing nowadays =Knowing the direct ROI
  6. 2000-2010 AttributionWhat is a channel worth? PPC = $55,000 of annual value Affiliate = $35,000 of annual value Display = $20,000 of annual value
  7. 2012+ AttributionWhat is a channel combination worth? PPC = $55,000 of annual value Affiliate = $35,000 of annual value Display = $20,000 of annual valueIncremental value PPC + Affiliate + Display = $20,000
  8. Sponsorships Leads Offers SEO Website Affiliate Blog Revenue Twitter PromotionsCommunity Email CRO Events Display Retention TradeshowsFacebook Launches ReportingRetargetting Branding PPC PR Pricing Local Referral UGCVideos Content Channel Leads
  9. Marketers have changed.
  10. Generalist specialistsSponsorships Leads Offers SEO Website Affiliate BlogRevenue Twitter PromotionsCommunity Email CRO EventsDisplay Retention TradeshowsFacebook Launches ReportingRetargetting Branding PPC PR
  11. Technical marketers HTML/CSS ‣ Web pages, HTML emails SQL ‣ Pulling data & listsAnalytical Capabilities ‣ Calculate ROI, reporting Regression Analytics ‣ Attribute results, analyze Forecasting ‣ Estimate value Copy capability ‣ Write ad copy Oh, and creative.
  12. Get sh*t done.
  13. MarketingGrowth
  14. What we’re discussing- Understand your marketing landscape- Building a comprehensive budget- Measuring performance
  15. Understand yourmarketing landscapeActions, channels, hubs & activities.
  16. What are your actions?
  17. What makes you money? Leads Demos Free Trials Signups Purchases
  18. And how much money? Leads $125 Demos $1000 Free Trials $11 Signups $20 Purchases $50
  19. How to calculate value?Build a funnel. Leads 200 Demos 25Contracts 10 Sale 5 Average $5000 Value $25,000 Sale$25,000 / 200 = $125
  20. How to calculate value?Build a funnel. Leads 200 Demos 25Contracts 10 Sale 5 Average $5000 Value $25,000 Sale$25,000 / 25 = $1000
  21. How to calculate value?Build a funnel.Free Trials 1000 Average Duration 10 Signups 550 Revenue Value $11,000 Per Month $20 $11,000 / 1000 = $11
  22. How to calculate value?Build a funnel.Free Trials 1000 Average Duration 10 Signups 550 Revenue Value $11,000 Per Month $20 $11,000 / 550 = $20
  23. How to calculate value?Build a funnel. Purchases 540 Value $27,000 $27,000 / 540 = $50
  24. What is each worth? Leads $125 Demos $1000 Free Trials $11 Signups $20 Purchases $50
  25. What channels drive those actions?
  26. What are your direct channels? Affiliate PPC Channel SEO Referral Display Retargetting Email Facebook Ads Twitter Ads Offline (Direct)
  27. What are your direct channels? Channel Leads Affiliate 210 PPC 195 Channel 90 SEO 165 Referral 180 Display 195 Retargetting 225 Email 45 Facebook Ads 30 Twitter Ads 15 Offline (Direct) 150 Total 1,500
  28. How many actions per channel?Channel Leads Value ($125)Affiliate 210 $26,250PPC 195 $24,375Channel 90 $11,250SEO 165 $20,625Referral 180 $22,500Display 195 $24,375Retargetting 225 $28,125Email 45 $5,625Facebook Ads 30 $3,750Twitter Ads 15 $1,875Offline (Direct) 150 $18,750Total 1,500 $187,500
  29. And the cost?Channel Leads Value CostAffiliate 210 $26,250 $10,500PPC 195 $24,375 $14,625Channel 90 $11,250 $9,000SEO 165 $20,625 -Referral 180 $22,500 $4,500Display 195 $24,375 $22,425Retargetting 225 $28,125 $7,875Email 45 $5,625 $450Facebook Ads 30 $3,750 $1,050Twitter Ads 15 $1,875 $2,025Offline (Direct) 150 $18,750 $15,000Total 1,500 $187,500 $87,450
  30. Finally, the cost-per-action.Channel Leads Value Cost CPAAffiliate 210 $26,250 $10,500 $50PPC 195 $24,375 $14,625 $75Channel 90 $11,250 $9,000 $100SEO 165 $20,625 - $-Referral 180 $22,500 $4,500 $25Display 195 $24,375 $22,425 $115Retargetting 225 $28,125 $7,875 $35Email 45 $5,625 $450 $10Facebook 30 $3,750 $1,050 $35AdsTwitter Ads 15 $1,875 $2,025 $135Offline 150 $18,750 $15,000 $100(Direct)Total 1,500 $187,500 $87,450 $58
  31. What are your hubs?
  32. What are your hubs? Website Sales Team Design Collateral Development Tradeshows/Events Conversion Rate Videos Optimization Swag
  33. What are your activities?
  34. What are your activities?Activities Supporting Time-boundSponsorships Design LaunchesContent/UGC Development EventsBlogging CRO WebinarsPR Copy TradeshowsSocial Media Collateral MeetupsCommunityTradeshowsBrandingOffers/PricingRetention
  35. Your landscape includes: Actions that drive the business. Channels that result in actions. Hubs that require support. (and can be optimized) Activities that help boost everything.
  36. Performance! !  PPC! !  Affiliate! Influencers" Bloggers" MARKETING! Affiliate networks! !  Display media! LANDSCAPE! !  Retargeting! !  SEO! !  Site sponsorships! Accessibility/usability" !  Distribution partnerships! Keyword research/targeting" Link building" !  Paid social marketing! !  Customer Cohort !  Product Marketing! !  Social Media! Messaging" Analysis! Twitter" Landing pages" !  Retention Behavior! Facebook" Product tiers and features! !  Targeted Programs! New sites (Q&A)! !  Offers! !  Churn Reduction! Free trials/deals" !  Email Marketing! !  Winback Programs!Inbound! Promotions! Moz Top 10! 1.  SaaS !  Conversion Rate !  Referral Programs! !  Community Marketing! Optimization! Management! 2.  Community! Conversion! Engagement! Retention! YOUmoz" Moderator development" 3.  Education! !  Product Hand Off! !  Events! !  Training & Meetups" Education! Seminars" !  Nurture Email Webinars" Program! !  Awesome Content! !  Proactive Customer Blog" Service! Guides" Big content projects" !  Branding ! Video" !  Press Relations! Infographics" Coverage " " Industry experts" Interviews" " !  Event Sponsorships! !  Business Development! !  Word of Mouth! !  Roger!! Awareness/Brand!
  37. Take a deep breathYou now everything you need to budget.
  38. Creating your budgetCost, return, timing and staffing.
  39. Budget methodBottom up $5,000,000 in revenue How many customers or “actions” does that require?
  40. Budget methodTop down $1,000,000 budget What sort of performance can we expect from that?
  41. Objectives of a budget Channels -What months are we doing this? -How/who is managing (cost)? -How much should we spend? -Expected performance and return. Activities -What months are we doing this? -How/who is managing (cost)? -How much will it cost? What our expected KPIs per month? What are we ok not doing?
  42. Channels & Activities BudgetCosts January 2012 February 2012 Who Media Exec. Mgmt. Notes Media Exec. Mgmt. NotesChannels Launch PPC Chris $10,000 - - - $20,000 - - boost New Affiliate Janet $1,000 - - - $1,200 $1,000 - bannersActivities Media PR Illuminate $0 $500 $3,000 - $0 $5,000 $10,000 tour Seattle Events Emily - $5,000 - meetup - - - -Return Signup CPA Rev. Notes Signup CPA Rev. NotesChannels Launch PPC Chris 100 $100 $12,500 - 222 $90 $27,750 boost New Affiliate Janet 20 $50 $2,500 - 24 $50 $3,000 banners
  43. Considerations-Budget with padding and for rainy days.-Do you have seasonality?-Do you to include need staffing costs?-Revenue is nice. Profit is better.-Retention & repeat sales.
  44. Performance! !  PPC! !  Affiliate! Influencers" Bloggers" MARKETING! Affiliate networks! !  Display media! LANDSCAPE! !  Retargeting! !  SEO! !  Site sponsorships! Accessibility/usability" !  Distribution partnerships! Keyword research/targeting" Link building" !  Paid social marketing! !  Customer Cohort !  Product Marketing! !  Social Media! Messaging" Analysis! Twitter" Landing pages" !  Retention Behavior! Facebook" Product tiers and features! !  Targeted Programs! New sites (Q&A)! !  Offers! !  Churn Reduction! Free trials/deals" !  Email Marketing! !  Winback Programs!Inbound! Promotions! Moz Top 10! 1.  SaaS !  Conversion Rate !  Referral Programs! !  Community Marketing! Optimization! Management! 2.  Community! Conversion! Engagement! Retention! YOUmoz" Moderator development" 3.  Education! !  Product Hand Off! !  Events! !  Training & Meetups" Education! Seminars" !  Nurture Email Webinars" Program! !  Awesome Content! !  Proactive Customer Blog" Service! Guides" Big content projects" !  Branding ! Video" !  Press Relations! Infographics" Coverage " " Industry experts" Interviews" " !  Event Sponsorships! !  Business Development! !  Word of Mouth! !  Roger!! Awareness/Brand!
  45. Be ok with whatyou’re not doing.
  46. Measuring performanceGoals, KPIs, metrics and sharing data.
  47. Set monthly goalsKPIs Owner Metric Jan. Feb.Overall Signups Jamie Signups 1,000 1,200 Sales Jamie Revenue $125,000 $150,000Channels Signups 100 222 PPC Chris CPA $100 $90 Affiliate Janet Signups 20 24Traffic & Social Visits Daniel Visits 100,000 110,000 Twitter Emily Followers 20,000 22,000
  48. Track metrics weeklySEOmoz’s KPIs:Membership Stats Site TrafficFree Trials VisitsPaid Trials Search VisitsSignups Referral VisitsVoluntary Cancels Direct VisitsInvoluntary Cancels Social Media VisitsWeekly Churn %Paid Member Count Social/CommunityPaid PRO Twitter FollowersTotal PRO (including trialers) Facebook FansUsers in Free Trial LinkedIn FollowersSubscribers by Tier LinkedIn Group Members RSS SubscribersSEO Stats (many!) Blog Comments
  49. Make it easily accessibleUsing Google Spreadsheets, compare to the past,and add commentary.
  50. Make it easily accessibleEmail to the company or department, each week
  51. Create detailedworksheetsFor primary channels/activities.Owned by team members.
  52. Comparing performance3 primary ways:1.Vs. Prior Period (week or month)2.Vs. Rolling Average (6 or 12 week)3.Vs. Peer, Competitor or Benchmark data
  53. Consider a status boardWe use Geckoboard:
  54. Twice yearly off-sites- Deep dive on metrics and performance- Brainstorm activities, based on your metrics: - Brainstorm, estimate, develop, test, iterate, evaluate, repeat.
  55. Celebrate progressNot just success.
  56. Employee performance Don’t judge employee performance on metrics alone. Just as important are culture-fit, values alignment, intuition and willingness/ ability to learn.
  57. Direction.
  58. Thanks! Jamie Steven VP Marketing SEOmozTwitter @jamiesLinkedIn http://linkedin.com/in/jamies

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