Leveraging data scientists and why content ROI

@katrina_neal • #intelcontent
Leveraging Internal and External Data
Scientists
and why its key to content ROI
Katrina Neal
Content Marketing Evangelist, LinkedIn
@katrina_neal

@TwitterHandle • #intelcontent
AGENDA
How to talk ROI for [content] marketing
How to measure the value of your content marketing
How to leverage internal and external data scientists
The role of Content Marketing Platforms

AGENDA
How to talk ROI for marketing

Return on Investment (ROI) is the
benefit to an investor resulting from
an investment of some resource.
In this formula, "Gain from
Investment” refers to the proceeds
obtained from the sale of the
investment of interest
Return on Investment
Gain from investment – Cost of investment
Cost of investment
=
ROI

65%
of CEOs think
marketers live in
Marketing la-la land

For Return on Marketing Investment
(ROMI) the two key metrics are
incremental net profit generated
from the activity (the financial
return), Versus the cost of campaign
(the investment). Measuring the
incremental net profit requires
deeper investigation.
Return on Marketing Investment
Incremental Net Profit
Cost of Campaign
=
ROMI
x 100%

AGENDA
To calculate ROMI you need
• Cost of Campaign
• Incremental Sales
• Retailer Margin
• Variable Cost per unit
• http://romi.ipa.co.uk/index.php/calculator

Calculate the revenue you generated
Incremental sales units [A] = 18 courses
Average price paid per unit [B] = £299
Value of incremental retail sales [C] = A x B
Value of incremental retail sales [C] = £5,382
Step 1
Actual
A Incremental sales volume (units) 18
B Average price paid per unit £299
C = A x B Value of incremental retail sales £5,382
D Retailer gross margin (%) 0%
E = D x C Retailer cash margin (£) £0
F = C – E Incremental sales revenue to manufacturer £5,382
G Variable cost per unit £102
H = G x A Incremental variable costs £1,836
I = F – H Contribution margin from incremental sales £3,546
J = I ÷ F Contribution margin (%) 66%
K Cost of campaign £300
L = I – K Net profit generated by campaign £3,246
M = L ÷ K x100 Return on marketing investment (ROMI) 1082%

Calculate the actual contribution you
generated. To do this you must take into
account the incremental COSTS incurred.
Variable cost per course (unit) was £102 = [G]
Incremental sales units [A] = 18 courses
Incremental variable costs [H] = [G] x [A]
Incremental variable costs = £1,836
Incremental revenue [F] £5,382
Incremental Costs [H] £ £1,836
Contribution Margin [I] = [F] – [H]
Contribution margin [I] = £3,546
Step 2
Actual

Subtract the cost of the campaign to
calculate the actual profit it generated
Contribution margin [I] = £3,546
Cost of Campaign [K] = £300
Net Profit Generated [L] =
Contribution Margin [I] – Cost of Campaign [K]
Net Profit Generated [L] = £3,246
Step 3
Actual

The ROMI is presented as a percentage to
show the ratio of profit from the investment
Return on Marketing Investment (ROMI) = L F
Net profit generated by campaign [L] £3,246
Cost of Campaign [K] £300
ROMI = 1082%
Step 4
Actual

AGENDA
To Calculate ROMI you need
• Cost of Campaign
• Incremental Sales
• Retailer Margin
• Variable Cost per unit
• http://romi.ipa.co.uk/index.php/calculator

AGENDA
how to measure the value of
your content

@TwitterHandle • #intelcontent@katrina_neal • #intelcontent
Pipeline marketing is what you’re
doing, while content marketing, inbound
marketing, lead nurturing, and growth
hacking are how you do it.

Attribution Models
• Single Touch
• Multi touch
• Full Path

Attribution Models
Linear
Time
decay
U-shaped W-shaped
Full path
Custom/
Algorithmic
First
Touch
Last Touch
Lead
conversion
touch

B2B or B2C?
How many channels do you use?
Do you have a sales team?
How long is your sales cycle
Do you nurture opportunities?

AGENDA
Single Touch Attribution
• First Touch
• Lead Conversion touch
• Last Touch

First Touch Attribution

Lead Conversion Touch

Last Touch Attribution

AGENDA
Multi Touch Attribution
• Linear
• Time decay
• U-shaped
• W-shaped
• Full path
• Custom

JavaScript Tracking Code

Urchin Tracking Module (UTM) Parameters
utm_source
=Google
utm_medium
=CPC
utm_campaign
=spring_sale
utm_content
=logolink
utm_term
=scuba+diving
Optional
Simply tags you add to a URL - supported
out of the box by Google Analytics

Linear multi-touch attribution model
Each touchpoint is assigned the same amount of revenue credit
Calculate the percentage by dividing the whole value of 1 by the total number of touchpoints along your buying journey

Time decay
If the sales cycle isn’t short, the early moments may not considered to be very important
more concern is often given to nurturing initiatives

U-shaped
The U-shaped multi-touch attribution model focuses on two key touchpoints 40% each
but 20% of the revenue kudos is divided across the moments in the middle that occur between those two stages

W-shaped
W-shaped multi-touch attribution modelling is similar to U-shaped, but it includes an additional key touchpoint

Full path
The full-path marketing attribution model is one of the most sophisticated attribution models available.
A full-path model also includes the post-opportunity stage marketing initiatives and it incorporates sales activities into the mix as well

Custom
A custom multi-touch attribution model is built upon the basis of the full-path attribution model.

AGENDA
How to leverage data scientists

Internal Data Scientists

“Today, as a data scientist, I can build
data crunching machines with complex
algorithms for a few dollars per hour”

Found: The missing link
between engagement and
revenue

Algorithmic Attribution

Q:
What is the
probability that an
Engagement
Activity would
result in an SQL?
Q:
Which activities
would result in a
Return Visit?
Content as seen through a
Bayesian Network
Arcs: showing higher probabilistic relationships
Nodes: variables

External Data Scientists

Project Bulletproof
Gaurav Nihalani Adam Yinger
Miguel Leano Alex Chen

Guide vs. e-book?
We tested a Sponsored Update Headline with a Call To Action (CTA):
Download “Guide” vs Download “e-book”
“Guide” outperformed “e-book”
95% increase in Click Through Rate (CTR)

Register vs. Join?
We tested a Sponsored Update Headline with a Call To Action (CTA):
“Register” vs “Join”
“Register” outperformed “Join”

Quotes vs. Stats?
We tested a Sponsored Update Headline:
“Quote” vs “Stats”
“Quote” outperformed “Stat”

Objects vs. People?
We tested a Sponsored Update Image:
“[Professional] Person” vs “Object”
“Person” outperformed “Object”

Inmail vs. Inmail + Sponsored Content?
We did a multi channel test:
“Inmail” vs “Inmail + Sponsored Content”
“Inmail + Sponsored Content” outperformed “Inmail alone”
72% higher Click Through Rate (CTR)

Be a champion for experimentation

How you can run a simple
A/B experiment on LinkedIn

https://business.linkedin.com/marketing-solutions/ads

AGENDA
Step 1
• First, create a campaign that you want to promote.
Customize the creative, bidding, budget, etc. then
create an exact replica of that campaign as a second
campaign.

AGENDA
Step 2
• Once you have two campaigns that are exactly alike
in every way, change one variable - for example, the
targeting, the image or the headline text
• Run against the two different audiences for at least
two weeks
• After two weeks, use an A/B significance test to
monitor the results.

Variation A:
Control (the unaltered, original version)
Variation B:
Treatment (the optimized version which you
expect to perform better)

Source:
getdatadriven.com/
ab-significance-test

splittestcalculator.com
This calculator is based on the
two-sided Chi-Square statistic
with Yates Correction.
This calculator uses a
confidence level of 95%

AGENDA
Step 3
• Make sure to also keep track of your A/B tests over
time. Finally, glean the results from all of your tests
(or design a long-term experiment) to gain insights
about your target audience and the success of your
campaigns.

Variation A:
Control (the unaltered, original version)
+ 48%
Variation B:
Treatment (the optimized version which you
expect to perform better)

https://offers.hubspot.com/
an-introduction-to-ab-
testing

Content Marketing Platforms

Q: What is the
probability that an
Engagement Activity
would result in an
SQL?
Q: Which activities
would result in a
Return Visit?

Understand commercial language
Champion the evolution of your content attribution models
Leverage data scientists and carry out your own experiments
Explore the potential of Content Marketing Platforms
TAKEAWAYS

Leveraging data scientists and why content ROI

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