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“Accounting for 
Marketing Spend in 
the Digital Age” 
Philip Alford 
Bournemouth University 
palford@bournemouth.ac.uk 
@philipalford on Twitter
Key ‘takeaways’ 
1. You can’t measure ROI in a traditional sense in a 
digital age. 
2. Have clear goals (some quantifiable others more 
qualitative) for integrated digital campaigns to 
benchmark against. 
3. Adopt a ‘test and learn’ approach over shorter 
cycles. 
4. Have a suite of tools to assist in your tracking 
and learn how to use them!
Components of digital marketing 
Source: Adapted from Chaffey and Ellis-Chadwick (2012)
Digital – a changing landscape 
• #Socialnomics 2014 by Erik Qualman: 
• https://www.youtube.com/watch? 
v=zxpa4dNVd3c
Explosive growth in social media 
http://www.personalizemedia.com/the-count/
Changing consumer 
• ‘The Break-Up’ is about the relationship 
between an advertiser and a consumer. 
• https://www.youtube.com/watch? 
v=D3qltEtl7H8
Marketing Science Institute 
Research priorities 2014-2016: 
http://www.msi.org/research/2014-2016- 
research-priorities/
Rules of thumb 
• For example, for every US $80 spent on driving traffic to 
websites companies spend only $1 converting that 
traffic, according to Omniture. 
• Avinash Kaushik’s 90:10 rule that you should spend $90 
on people (including education and training) for every 
$10 spent on analytics tools. 
• Challenge is less about technology and data and more 
about people and processes.
We had this conversation as well, we started to talk 
about measuring, and the challenges in the good 
old days, someone could ring up your staff and do a 
holiday booking and say where did you find us, and 
they’d say oh we saw your advert in whatever 
newspaper, oh great, there you go. Since Google 
and websites and things like that it’s the routes 
they take to actually end up on your site. Trying to 
find that route of how they made their journey 
actually into your company is almost impossible 
nowadays. 
We had this conversation as well, we started to talk 
about measuring, and the challenges in the good 
old days, someone could ring up your staff and do a 
holiday booking and say where did you find us, and 
they’d say oh we saw your advert in whatever 
newspaper, oh great, there you go. Since Google 
and websites and things like that it’s the routes 
they take to actually end up on your site. Trying to 
find that route of how they made their journey 
actually into your company is almost impossible 
nowadays. 
Holiday homes letting agency, Poole, Dorset; 5 staff
A short interview with Paul Dredge, 
Associate Director, Rumsey Holiday 
Homes on his priorities for digital 
https://www.youtube.com/watch? 
v=qe1eaALXrC0
Opportunity cost of digital marketing 
• Bharadwaj, P., & Soni, R. (2007) 
• Simmons, G., Armstrong, G., & Durkin, M. (2008)
Themes emerging from Digital Destinations study
Customer engagement value 
Kumar, V., L. Aksoy, et al. (2010). "Undervalued or Overvalued Customers: Capturing 
Total Customer Engagement Value." Journal of Service Research 13(3): 297-310.
Conversation marketing
Co-Creation
Digital: Is it really a paradigm shift?
The 4Cs of Gen C 
• Creation 
• Curation 
• Connection 
• Community 
• https://www.thinkwithgoogle.com/articles/enga 
gement-project-new-normal.html
"Why don’t we flip that 100% winnowed 
to 30% winnowed to 5% funnel? Rather 
than starting by thinking about how to 
reach or broadcast to as many people as 
possible to get to those who matter, what 
if we began with engaging those who are 
the most likely to care? "
Hoffman & Novak’s LEAD model 
1. Listen 
2. Experiment 
3. Apply 
4. Develop 
Hoffman, D. L. & Novak, T. P. 2011. Marketing communication in a digital Era. 
Marketing Management, 20, 36-43.
Attentive.ly 
http://vimeo.com/49986794
True Social Metrics 
http://www.kaushik.net/avinash/best-social-media-metrics-conversation- 
amplification-applause-economic-value/
Measurement is key 
‘Not everything that can be counted counts, and not 
everything that counts can be counted”
Types of data 
• What? – clickstream data – analyse data to provide insight 
and set goals and targets; 
• How much? – outcomes analysis – what did people do as 
a result of visiting our website? Set up goals in Google 
Analytics; 
• Why? – testing and voice of customer; why is your bounce 
rate is so high? Why do they leave your site on a particular 
page? Ask customers is the only option. Conduct surveys, 
Google Experiments, usertesting.com, etc;
Boiling pots!
We were talking about putting a strategy plan 
together, but actually it’s got to be more 
focused now, actually saying right, this month 
what we’re trying to get out of it. Is it number 
of likes we’re trying to get, is it number of 
bookings, and actually number of reviews at 
the end of it, and actually start to say right, 
this month we are focusing on this and that’s 
got to be our goal, because otherwise you 
can get lost amongst it all. 
We were talking about putting a strategy plan 
together, but actually it’s got to be more 
focused now, actually saying right, this month 
what we’re trying to get out of it. Is it number 
of likes we’re trying to get, is it number of 
bookings, and actually number of reviews at 
the end of it, and actually start to say right, 
this month we are focusing on this and that’s 
got to be our goal, because otherwise you 
can get lost amongst it all. 
Dorset Visual Arts, no FT staff – all freelance or board members
Developing the strategy 
Situation: where are we now? 
Objectives: where do we want 
to be? 
Strategy: how do we get there? 
Tactics: how exactly do we get 
there? 
Action: what is our plan? 
Control: did we get there?
@KarlHavard 
An Engagement Framework 
A d v o c a c y 
S u s p e c t P r o s p e c t C u s t o m e r A d v o c a t e In f l u e n c e r 
I n t e r e s t 
C o n v e r s i o n 
A w a r e n e s s
Digital marketing & measurement model 
http://www.kaushik.net/avinash/digital-marketing-and-measurement-model/
The website as hub
Measuring a Twitter campaign at 
Paultons Theme Park, Hampshire
Final student reports 
Paultons Park (Georgi Oliver working with Rob Lee)
Feedback on campaign 
“To add 400 new followers in 7 days is a great result for 
us. When celebrities have mentioned us before we have 
had added around 100-200 new followers depending on 
their following. Naturally Paultons Park generate 
around 20-30 new followers per week” 
(Rob Lee, Digital Marketing Manager, Paultons)
Return on Investment 
OR 
Return on Expectation?
Thank-you 
Philip Alford 
palford@bournemouth.ac.uk

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'Accounting for Spend in the Digital Age' presentation at University of Ulster

  • 1. “Accounting for Marketing Spend in the Digital Age” Philip Alford Bournemouth University palford@bournemouth.ac.uk @philipalford on Twitter
  • 2. Key ‘takeaways’ 1. You can’t measure ROI in a traditional sense in a digital age. 2. Have clear goals (some quantifiable others more qualitative) for integrated digital campaigns to benchmark against. 3. Adopt a ‘test and learn’ approach over shorter cycles. 4. Have a suite of tools to assist in your tracking and learn how to use them!
  • 3. Components of digital marketing Source: Adapted from Chaffey and Ellis-Chadwick (2012)
  • 4. Digital – a changing landscape • #Socialnomics 2014 by Erik Qualman: • https://www.youtube.com/watch? v=zxpa4dNVd3c
  • 5. Explosive growth in social media http://www.personalizemedia.com/the-count/
  • 6. Changing consumer • ‘The Break-Up’ is about the relationship between an advertiser and a consumer. • https://www.youtube.com/watch? v=D3qltEtl7H8
  • 7. Marketing Science Institute Research priorities 2014-2016: http://www.msi.org/research/2014-2016- research-priorities/
  • 8. Rules of thumb • For example, for every US $80 spent on driving traffic to websites companies spend only $1 converting that traffic, according to Omniture. • Avinash Kaushik’s 90:10 rule that you should spend $90 on people (including education and training) for every $10 spent on analytics tools. • Challenge is less about technology and data and more about people and processes.
  • 9. We had this conversation as well, we started to talk about measuring, and the challenges in the good old days, someone could ring up your staff and do a holiday booking and say where did you find us, and they’d say oh we saw your advert in whatever newspaper, oh great, there you go. Since Google and websites and things like that it’s the routes they take to actually end up on your site. Trying to find that route of how they made their journey actually into your company is almost impossible nowadays. We had this conversation as well, we started to talk about measuring, and the challenges in the good old days, someone could ring up your staff and do a holiday booking and say where did you find us, and they’d say oh we saw your advert in whatever newspaper, oh great, there you go. Since Google and websites and things like that it’s the routes they take to actually end up on your site. Trying to find that route of how they made their journey actually into your company is almost impossible nowadays. Holiday homes letting agency, Poole, Dorset; 5 staff
  • 10. A short interview with Paul Dredge, Associate Director, Rumsey Holiday Homes on his priorities for digital https://www.youtube.com/watch? v=qe1eaALXrC0
  • 11. Opportunity cost of digital marketing • Bharadwaj, P., & Soni, R. (2007) • Simmons, G., Armstrong, G., & Durkin, M. (2008)
  • 12. Themes emerging from Digital Destinations study
  • 13. Customer engagement value Kumar, V., L. Aksoy, et al. (2010). "Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value." Journal of Service Research 13(3): 297-310.
  • 16. Digital: Is it really a paradigm shift?
  • 17. The 4Cs of Gen C • Creation • Curation • Connection • Community • https://www.thinkwithgoogle.com/articles/enga gement-project-new-normal.html
  • 18. "Why don’t we flip that 100% winnowed to 30% winnowed to 5% funnel? Rather than starting by thinking about how to reach or broadcast to as many people as possible to get to those who matter, what if we began with engaging those who are the most likely to care? "
  • 19. Hoffman & Novak’s LEAD model 1. Listen 2. Experiment 3. Apply 4. Develop Hoffman, D. L. & Novak, T. P. 2011. Marketing communication in a digital Era. Marketing Management, 20, 36-43.
  • 20.
  • 22. True Social Metrics http://www.kaushik.net/avinash/best-social-media-metrics-conversation- amplification-applause-economic-value/
  • 23. Measurement is key ‘Not everything that can be counted counts, and not everything that counts can be counted”
  • 24. Types of data • What? – clickstream data – analyse data to provide insight and set goals and targets; • How much? – outcomes analysis – what did people do as a result of visiting our website? Set up goals in Google Analytics; • Why? – testing and voice of customer; why is your bounce rate is so high? Why do they leave your site on a particular page? Ask customers is the only option. Conduct surveys, Google Experiments, usertesting.com, etc;
  • 25.
  • 27. We were talking about putting a strategy plan together, but actually it’s got to be more focused now, actually saying right, this month what we’re trying to get out of it. Is it number of likes we’re trying to get, is it number of bookings, and actually number of reviews at the end of it, and actually start to say right, this month we are focusing on this and that’s got to be our goal, because otherwise you can get lost amongst it all. We were talking about putting a strategy plan together, but actually it’s got to be more focused now, actually saying right, this month what we’re trying to get out of it. Is it number of likes we’re trying to get, is it number of bookings, and actually number of reviews at the end of it, and actually start to say right, this month we are focusing on this and that’s got to be our goal, because otherwise you can get lost amongst it all. Dorset Visual Arts, no FT staff – all freelance or board members
  • 28. Developing the strategy Situation: where are we now? Objectives: where do we want to be? Strategy: how do we get there? Tactics: how exactly do we get there? Action: what is our plan? Control: did we get there?
  • 29. @KarlHavard An Engagement Framework A d v o c a c y S u s p e c t P r o s p e c t C u s t o m e r A d v o c a t e In f l u e n c e r I n t e r e s t C o n v e r s i o n A w a r e n e s s
  • 30.
  • 31.
  • 32. Digital marketing & measurement model http://www.kaushik.net/avinash/digital-marketing-and-measurement-model/
  • 34. Measuring a Twitter campaign at Paultons Theme Park, Hampshire
  • 35. Final student reports Paultons Park (Georgi Oliver working with Rob Lee)
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41. Feedback on campaign “To add 400 new followers in 7 days is a great result for us. When celebrities have mentioned us before we have had added around 100-200 new followers depending on their following. Naturally Paultons Park generate around 20-30 new followers per week” (Rob Lee, Digital Marketing Manager, Paultons)
  • 42.
  • 43. Return on Investment OR Return on Expectation?
  • 44. Thank-you Philip Alford palford@bournemouth.ac.uk

Editor's Notes

  1. Marketing measurement has to evolve just as marketing itself must evolve in rapidly changing marketplace. Key concepts include long term brand building and tracking; customer relationship development; co-creation of the service experience; need to have a clear idea of where digital can (and cannot) add value for the customer and the business; how can digital enable a more entrepreneurial approach to marketing?
  2. Bharadwaj, P., & Soni: SBEs questioned the strategic importance of online marketing Simmons, G., Armstrong, G., & Durkin, M. (2008): refer to SBE awareness of the opportunity cost; Related to point above, many small businesses not completely convinced of the ROI on digital marketing Businesses in the study talked more about costs than benefits
  3. CKV – a collaborative approach to marketing – engaging stakeholders and creating partnership – how to put a value on that? See examples of co-creation in later slide. Link between CIV and CKV – key influencers could be target group for co-creation. CIV – example of LiveAid enlisting 3 Vloggers with nearly 13m YouTube subscribers. The Bald Hiker is an example of an influencer.
  4. Give VW example of developing new website in collaboration with partners – what’s the value of that R&D to VW?
  5. This idea of starting with the engaged is akin to effectual logic which starts with the means at our disposal.
  6. 150 text references related to poor understanding
  7. Illustrate with Surf Steps. Boiling pots: which pots are simmering nicely - self sustaining? What pots need a little extra heat? What new pots does the owner want to start heating up? What pots do they want to take off the heat completely? Which pots do they want to revisit? For which pots is digital marketing appropriate?
  8. The term focus was used repeatedly throughout the project
  9. Awareness: Linking: show featured products screenshot from a New Mind website
  10. Workshop will focus on Google Analytics as a tool to assist planning which will involve social media;
  11. Georgi 77 Shelley 67