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The New CMO –
Cross Media Optimization

Craig Macdonald, CMO and SVP of Products
cmacdonald@covario.com
Relationship between Paid and Organic Search
Relationship between Paid and Organic Search



                         •   Loss of traffic during test
                         •   Measurement confounded by
                             other factors
                              – Cyclical patterns
                              – Other marketing actions
                                 (yours and competitors’)
                              – Economy, weather, etc.
Relationship between Paid and Organic Search



        Organic CTR




                       Paid CTR
Conclusion



•   Measurement of keyword level performance for paid and
    organic with tagged landing pages

•   Requires experimentation

•   Result: 15–20% of paid search spending is mis-targeted
Affiliate Programs
Affiliate Programs
Affiliate Programs

         Paid                Organic


                     •   50% rev increase
                         January over
                         November

                     •   Daily average
                         revenue increase
                         150% from
                         November to January

                     •   Conversion rate
                         increase up 34%
Conclusion



•   Tagging for affiliate vs. direct traffic required

•   Requires experimentation

•   Result: 35% higher returns for 33% less cost
Display and Search
Online Offline




     ROI impact of synergized TV-Search marketing — SuperBowl
Online Offline
                             TV Spots




                                                           500%
                                                         CTR increase

                                                            20%
                                                       Showed Purchase
                                                            Intent




 • Search campaigns launched with consistent messaging
 • Huge ad relevancy, traffic, and ROI gains seen immediately
 • Traffic lift persisted beyond ad flighting
Challenges


• Testing and experimentation expertise

• Flexible measurement environment

• Governance structure

• Incentives
What Has Changed?




               DJIA                              NASDAQ


•   Digital growth at 5–10% level (down from 35%+ growth)
•   NO headcount increases
•   Squeeze 15% cost improvements out of programs
•   3 month payback periods, max
Maturity Model
                                 Centralization

                                                  Cross Media Optimization


          Channel Optimization




        Channel Specific
           Process




   Fragmentation
Cross Media Optimization
                       Predictive Modeling                                             Scenario Analysis
                                                                                       Ability to conduct ―what if‖ analysis to determine
                       Ability to develop forecasts of outcomes to marketing events
  Cross Media                                                                          impact of strategic changes
                       Constraint-based Optimization
  Optimization                                                                         Deployment
                       Impact analysis on how budget and inventory                     Integration with execution systems to enable
                       constraints limit goal attainment                               optimal strategies
  Channel




            Search         Display                  Social                   Radio                TV                     Print
             Search          Video                Community               Commercial          Network               Magazines
             Mobile        Banners                  Sites                  Satellite           Cable                Trade Pubs
            Content       Rich Media                Blogs                                      Digital              Newspapers
            Targeted       Gadgets
  Direct




                             Portal                                                    Modular Applications
                             Web, Email, Personalized Reports                          Search, Display, TV, Print, Social Media, etc
 Data Integration
    Platform
                             Platform                                                  Database
                             Security, Administration, Business Rules, Workflow        Multi-Dimensional, OLAP
Getting Started


• Investment in web analytics

• Develop experimentation strategy

• Digital Center of Excellence

• Build success and knowledge — then scale

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The New CMO - Mark Krebs, Covario

  • 1. The New CMO – Cross Media Optimization Craig Macdonald, CMO and SVP of Products cmacdonald@covario.com
  • 2. Relationship between Paid and Organic Search
  • 3. Relationship between Paid and Organic Search • Loss of traffic during test • Measurement confounded by other factors – Cyclical patterns – Other marketing actions (yours and competitors’) – Economy, weather, etc.
  • 4. Relationship between Paid and Organic Search Organic CTR Paid CTR
  • 5. Conclusion • Measurement of keyword level performance for paid and organic with tagged landing pages • Requires experimentation • Result: 15–20% of paid search spending is mis-targeted
  • 8. Affiliate Programs Paid Organic • 50% rev increase January over November • Daily average revenue increase 150% from November to January • Conversion rate increase up 34%
  • 9. Conclusion • Tagging for affiliate vs. direct traffic required • Requires experimentation • Result: 35% higher returns for 33% less cost
  • 11. Online Offline ROI impact of synergized TV-Search marketing — SuperBowl
  • 12. Online Offline TV Spots 500% CTR increase 20% Showed Purchase Intent • Search campaigns launched with consistent messaging • Huge ad relevancy, traffic, and ROI gains seen immediately • Traffic lift persisted beyond ad flighting
  • 13. Challenges • Testing and experimentation expertise • Flexible measurement environment • Governance structure • Incentives
  • 14. What Has Changed? DJIA NASDAQ • Digital growth at 5–10% level (down from 35%+ growth) • NO headcount increases • Squeeze 15% cost improvements out of programs • 3 month payback periods, max
  • 15. Maturity Model Centralization Cross Media Optimization Channel Optimization Channel Specific Process Fragmentation
  • 16. Cross Media Optimization Predictive Modeling Scenario Analysis Ability to conduct ―what if‖ analysis to determine Ability to develop forecasts of outcomes to marketing events Cross Media impact of strategic changes Constraint-based Optimization Optimization Deployment Impact analysis on how budget and inventory Integration with execution systems to enable constraints limit goal attainment optimal strategies Channel Search Display Social Radio TV Print Search Video Community Commercial Network Magazines Mobile Banners Sites Satellite Cable Trade Pubs Content Rich Media Blogs Digital Newspapers Targeted Gadgets Direct Portal Modular Applications Web, Email, Personalized Reports Search, Display, TV, Print, Social Media, etc Data Integration Platform Platform Database Security, Administration, Business Rules, Workflow Multi-Dimensional, OLAP
  • 17. Getting Started • Investment in web analytics • Develop experimentation strategy • Digital Center of Excellence • Build success and knowledge — then scale