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An Anatomy of a Digital Audit
Workshop
Prepared by Tim Bourgeois
December 1, 2016
2
INTRODUCTION
3
Workshop Overview
Marketing management has never been so exciting -- or daunting. The
proliferation of digital tactics and lightweight technology has cleared the
path for us to take genuine ownership of our operations, and be less reliant
on other areas of the organization to do our jobs. While this new reality is
empowering, it also comes with challenges. Indeed, today's senior marketing
manager is not only tasked with traditional responsibilities such as brand
shepherding and lead generation, but also line items such as data analysis,
technology portfolio optimization, and vendor relations.
The session will explain a comprehensive 30-point methodology for conducting an
assessment, with specific focus on the following four areas of the marketing operation:
• Advertising & Promotion: digital media (search, display / banners, classified, mobile, digital video, lead
generation, sponsorships), organic search marketing, content marketing, social media, email marketing
• Websites: copy, images, video / animation, landing pages, microsites, search, live chat, blogs
• Technology: marketing automation, content management, analytics, and data management
• Vendors: even mid-sized digital marketing operations often have 10+ vendors involved in maintenance
and optimization
4
Workshop Goals
• Leave the session with 4-5 practical techniques for meaningful cost-
cutting or ROI improvement
• Develop an understanding of the entire digital ecosystem and how an
audit could be pursued at your own organization
Most digital audits are focused on the following areas of emphasis:
 Cost-savings: “Our spending on digital advertising, staff, and technology has
doubled in the past three years, and we need to find ways to get spending
under control.”
 Performance improvement: “Our digital strategy is critical to the long-term
health of the business and we need to make sure our digital investments are
optimized.”
 Competitive benchmarking: “We know we’re at a competitive disadvantage
due to our digital strategy and we need to understand the precise pain points
and how to respond.”
5
About Me: East Coast Catalyst & ChiefDigitalOfficer.net
6
About Me: Client Experience
7
THE DIGITAL LANDSCAPE
8
U.S. Internet Advertising Revenues, 2005-2015
9
Global Digital Ad Market by Medium
10
U.S. Media Spending
11
US Digital Ad Market by Format
12
DIGITAL MARKETING LANDSCAPE CHAOS
13
Rapid Expansion of New Territories
14
Insanely Complicated Digital Advertising Ecosystem
15
The Gartner Digital Marketing Transit Map
16
The Social Media Landscape
17
Programmatic Accounts for 50%+ of Display
183/15/2017 :: Page 18
May, 2015
Programmatic 90%
Direct 10%
Programmatic 50%
Direct 50%
20162015
Instagram switches on
self-service ads
High Growth Platforms > Programmatic
19
THE CHALLENGE
20
Traditional Corporate Org Structure
The traditional,
function-based
structure of
corporations
doesn’t
accommodate
successful digital
business, which
cuts across
multiple
functional areas.
21
Digital’s Impact is Far-Reaching
22
Why The Need for a Digital Audit & Roadmap?
Executing successfully on digital strategies has never been more challenging. While the
rapid proliferation of digital technologies and techniques over the past decade has
fueled the growth of an exciting new industry, and which has enabled general managers
and marketers to free themselves from the grips of the IT department, it has also created
a disruptive environment that is challenging to manage.
“In our experience, companies may be leaving as much as 20%
to 30% of potential [digital advertising] returns on the table.”
“Software is eating the world.“ (Marc Andreessen)
“The CMO will spend more on IT than the CIO by 2017.”
New research from BCG shows that today's marketing
organizations "do not have the skills to operate in a digital
world, and that the gaps and shortfalls are bigger than
they assume."
23
Other Reasons for Audits & Roadmaps
“Should I be using Outbrain?”
• CMO at $100M manufacturing company
“Do you think $9,000/month is enough for my paid search program?
• CMO at $50M marketing company
“Is Hubspot good?”
• Numerous
“I just hired a senior in college to make some noise for me on social media in between classes.”
• Consulting firm CEO
“My nephew is graduating from college this spring and I’m thinking of hiring him to run my website.”
• Successful energy entrepreneur
“What about the other 97% of my website visitors – why aren’t we getting their business too?”
• $500M company CEO in response to hearing his company’s website performs at a 3% conversion rate
Lots of confusion among senior executives about how to deploy
digital strategy, and what is considered successful or unsuccessful.
24
Frankenstein Operation
25
Financial Incentives
Company Revenues Digital Spend* Savings/Gains**
$10,000,000 $187,500 $37,500
$25,000,000 $468,750 $93,750
$50,000,000 $937,500 $187,500
$100,000,000 $1,875,000 $375,000
$250,000,000 $4,687,500 $937,500
$500,000,000 $9,375,000 $1,875,000
$1,000,000,000 $18,750,000 $3,750,000
$5,000,000,000 $93,750,000 $18,750,000
$10,000,000,000 $187,500,000 $37,500,000
* Digital spend estimated at 25% of marketing budget; marketing budget assumed to be 7.5% of revenues
** Assumes 20% savings or performance gain as a result of audit & roadmap
A typical company with $100M in sales can expect $375,000 in
savings or performance gains following a digital audit.
26
Financial Incentives
Company Revenues Digital Spend* Savings/Gains**
$10,000,000 $187,500 $37,500
$25,000,000 $468,750 $93,750
$50,000,000 $937,500 $187,500
$100,000,000 $1,875,000 $375,000
$250,000,000 $4,687,500 $937,500
$500,000,000 $9,375,000 $1,875,000
$1,000,000,000 $18,750,000 $3,750,000
$5,000,000,000 $93,750,000 $18,750,000
$10,000,000,000 $187,500,000 $37,500,000
* Digital spend estimated at 25% of marketing budget; marketing budget assumed to be 7.5% of revenues
** Assumes 20% savings or performance gain as a result of audit & roadmap
The most likely candidates for a digital audit are companies with $50M - $1B
in annual sales. Small companies aren’t spending enough on digital yet to
justify an audit, and very large companies are either too complex or
impenetrable due to their existing agency relationships.
27
Making the Case for an Audit
Your CEO Is Going to Start Asking Questions
Combined factors of increased profile + budget
Playing Catch-Up is a Bad Spot
If the audit is requested by a CEO or CFO, that puts marketing in a vulnerable positions
Objectivity is in Short Supply
If your vendor’s tool is a hammer, every problem looks like a nail
If You’re Not Confused, You’re Not Paying Attention
The growth of digital advertising and the digital tools and technologies marketplace has
resulted in sprawling, Frankenstein-like digital operations with various inefficiencies
(Practically) Every Other Group is Doing It
Many other corporate groups conduct audits regularly: finance, IT, risk, energy, HR, etc.
Your CFO Will Love You For It
It’s the CFO’s job to keep an eye on spending, and while many digital audits result in budget
increase recommendations, it can also serve as a compelling tool to influence CFO thinking
about digital investments
28
THE AUDIT
29
Digital Audit Approach (Framework)
The East Coast Catalyst digital strategy framework is a tested methodology that
ensures every aspect of an operation is assessed and incorporated into the
planning process.
CATEGORY AREA OF FOCUS
DESCRIPTION /
INVENTORY
ASSESSMENT OPTIONS RECOMMENDATIONS
Strategy Alignment with Corporate Sales, Marketing & Operational Objectives
Strategy Competitive Benchmarking: Digital Footprint & Reach
Strategy Competitive Benchmarking: Competitor Ad Spending & Budgets
Infrastructure Hosting: Setup & Configuration
Infrastructure Hosting: Performance & Scability
Applications Content Management System (CMS)
Applications Baseline Functionality (Forms, Personalization)
Applications Database / Data Warehouse
Applications Ecommerce
Applications CRM / Marketing Technology & Automation
Applications Custom Applications / Intranet / Extranet
Applications Community
Applications Mobile Apps / Mobility
Creative/Design User Experience
Creative/Design Branding / Identity
Creative/Design Website Assets (Imagery, Content, Widgets)
Creative/Design Rich Media / Video
Promotion Social Media
Promotion Search Engine Optimization / Organic Search
Promotion Pay-Per-Click (PPC) Search Marketing / Paid Search
Promotion Email Marketing
Promotion Content Marketing
Promotion Mobile Marketing
Promotion Display Advertising
Promotion Online PR
Analytics Tool(s) Setup & Configuration
Analytics Conversion / Goal Tracking
Analytics Reporting: Business Process
Talent / Skills Staff Capability Assessment
Vendors Vendor Mix, Contracts & Performance Assessment
THE DIGITAL STRATEGY AUDIT & ROADMAP FRAMEWORK
30
Digital Audit Approach (Framework) (continued)
• Strategy: Alignment with corporate goals
• Strategy: Competitor benchmarking
•Infrastructure: Hosting vendor & contract evaluation
• Infrastructure: Hosting performance & scalability
• Infrastructure: Business process management
methods
• Infrastructure: Database / data warehouse
• Website: Application (CMS)
• Website: Application (ECommerce)
• Website: Application (CRM / Marketing Automation)
• Website: Intranet / Extranet
• Website: Custom application(s)
• Website: User experience
• Website: Community
• Website: Multimedia assets
• Creative: Communication strategy & offline
integration
• Creative: Digital asset review
ECC’s digital marketing strategy discovery activities may include the investigation into
any one or all of the following components of a digital operation.
• Promotion: Display advertising
• Promotion: Organic search engine optimization (SEO)
• Promotion: Pay-per-click (PPC) advertising
• Promotion: Email marketing
• Promotion: Content marketing
• Promotion: Mobile marketing
• Promotion: Online public relations (PR)
• Promotion/Community: Social media
• Analytics: Systems & setup
• Analytics: Conversion tracking
• Competitor Review: Site assets & performance
assessment
• Competitor Review: Digital advertising activities &
budget benchmarking
• Talent/Skills Review: Assess capabilities &
composition of client team
• Vendor / Partner review: Vendor management
relationships, contracts, and optimization planning
31
Sample Audit Deliverables
Assessment results and strategic recommendations will be delivered in two
primary formats: a series of reporting documents and in-person presentations.
Prior ECC digital strategy audit and roadmap
assignments have yielded reports that address the
following in each major area of the project (planning,
infrastructure, applications, creative, promotion,
analytics, vendors and staff):
- Description / inventory
- Research findings (quotes from the field, industry
experts)
- Competitive benchmarks
- Assessment (weak, industry standard, strong) +
insights
- Options
- Opportunity
- Costs
- Recommendations
32
Area of Focus: Infrastructure & Applications
Hosting
Hosting is literally the foundation of any digital marketing operation, but often doesn’t get the
attention or priority it deserves.
Website Speed
Most experts agree that sites should download in under five seconds. More recently, studies
have shown that users abandon sites in great numbers after two seconds.
Marketing Technology
The marketing technology category has exploded in recent years; according to VentureBeat,
the sector is growing at 50% annually.
Responsive Design / Mobile Friendly
There’s no avoiding mobile. The statistics are overwhelming, in both B2C and B2B. And it’s
more of an infrastructure (applications) problem than a design problem.
33
Area of Focus: Promotion
Search Marketing
Paid search marketing (PPC) accounts for 40%+ of all digital advertising.
Mobile Marketing
With phone and tablet internet usage officially overtaking PCs this year, a mobile strategy is a
must-have in every digital marketing portfolio.
Multi-Channel Marketing
Multichannel marketing is one of the most frequently discussed topics among digital marketing
executives these days. But given its relative newness, you still have time to get out ahead of
the pack if you move soon.
Email Marketing
"Newsletters are clicking because readers have grown tired of the endless stream of
information on the Internet."
34
Area of Focus: Vendor Management
Understand the Vendor Landscape
Ad agencies, marketing services providers, marketing technology companies
Procurement Wizardry
“Procurement departments and others have been busily grinding down fees for decades now”
Vendor Portfolio Management
The very largest companies can afford one-stop-shop relationships with full-service agencies,
and they’ll do this job for clients. The rest of us need to fend for ourselves.
Be a Good Client
When it comes to digital, skilled professionals have myriad options these days.
35
Tools of the Trade
The Google ‘Stack’
Google Analytics, AdWords, Search Console (formerly Webmaster Tools), Tag Manager
Competitive Benchmarking
SpyFu, Compete
User Experience
Optimizely, Crazy Egg
Data Collection
In-person interviews, surveys
36
CASE STUDY
[The case study used during the workshop contains sensitive and propriety information, and
therefore is not included in this document.]
37
SUMMARY & KEY TAKEAWAYS
38
Areas of Emphasis
The “80/20” rule applies to digital audits. 80% of your material findings are
going to be gleaned from 20% of the operation. These areas typically include
one of the following:
• Paid digital advertising: pay-per-click (ppc) search and display advertising (including
mobile) combine to account for about 75% of all digital advertising, and these areas are
the most fertile for auditing, if only because of their size
• Vendor management: mis-aligned or mis-managed vendors are the #1 sources of digital
operation leakage
• Staffing: the largest digital agencies have been managing annual turnover rates in
excess of 25% for years; corporations don’t typically experience this rate of turnover,
which means that unless job descriptions are being proactively evolved each year, the
“digital” job someone was hired to do 4-5 years ago is probably dramatically different
today, so mis-aligment will be apparent and problematic
39
Keys to Success
Digital audits can be challenging to conduct successfully due to their cross-
departmental variables and lack of generally agreed-upon best practice
benchmarks to measure against. In our experience, successful digital audits
include the following characteristics:
• Executive sponsorship: while this factor is true for most projects, it’s especially pertinent to
digital audits because many departments are necessary for fact-gathering; as such, a C-level
sponsor is typically required for companies with less than $500M in sales
• Stakeholder meetings at each phase of the project: most audits are complex and regular
education throughout assignments is critical for gaining the buy-in necessary to implement post-
audit recommendations (such as vendor re-balancing or new budget acquisition)
• Realistic scope: comprehensive digital audits can only be achieved with overt buy-in from the
board, CEO and/or CFO, and this commitment is unusual, especially at large companies;
however, focused digital audits (on specific areas of the digital value chain, such as PPC,
marketing technology, staffing, etc.) can also result in significant cost-savings or performance
improvements, while also serving as a path to a comprehensive audit; be realistic about what
can be included in your audit and scope it in a way that affords the best chance of success
• Avoidance of sacred cows & red herrings: if the organization has just committed to a multi-
year, enterprise-class contract with a huge software company for its marketing suite, consider
that a sunk cost and figure out a way to make the most of it; at the same time, many vendor
relationships can be reworked or even canceled without much difficulty – knowing the difference
between these two situations can be the difference between a successful or failed audit
40
East Coast Catalyst
300 Summer Street, Boston, MA 02210
617-314-6400
www.eastcoastcatalyst.com
@ECoastCatalyst
@ChiefDigOfficer
Tim Bourgeois | tbourgeois@eastcoastcatalyst.com
41
APPENDIX:
ABOUT EAST COAST CATALYST
42
About East Coast Catalyst
Located in the heart of the Boston’s Innovation District, ECC is a digital consultancy that
specializes in helping clients optimize digital operations. The firm’s principals – Tim Bourgeois
and David Polcaro – each bring more than a decade of experience in the digital industry to
every client engagement.
ECC’s core consulting offerings include digital strategy, digital audits, user experience
planning, and digital marketing optimization. Current and active ECC clients span the spectrum
of Fortune 500 organizations and start-ups alike, including: Apperian, Attivio, Cisbio, North
Bridge Ventures, Resolution (an Omnicom company), and Signiant.
Prior to launching ECC, the firm’s principals managed Pixel Bridge, a full-service interactive
marketing and web development agency. Acquired by AMP Agency, the firm delivered a range
of digital agency and consulting services to a client list that included global brands such as
Black & Decker, The Boston Globe, Comcast, Harvard, ITW, Sulzer, Thomson-Reuters, and
TIBCO.
For more information, please visit EastCoastCatalyst.com.
East Coast Catalyst is a digital strategy consulting firm.
43
About East Coast Catalyst: What Clients Say
“East Coast Catalyst’s fresh approach to digital strategy combines analytical rigor, innovative thinking,
and nuts-and-bolts best practices. The firm is a bona fide hidden gem. I’ve hired the company on more
than one occasion and sing their praises at every opportunity.”
- Alan Osetek, Global President / Resolution, An Omnicom Company
“East Coast Catalyst is the rare digital firm that has demonstrated expertise in every area of the value
chain: strategy, tactics, execution and optimization. I've personally been a client for more than five years –
at two different companies – and I recommend them enthusiastically and without hesitation.
- Mark Lorion, CMO / Apperian
"We wanted to work with a nimble company on our digital strategy project, and East Coast Catalyst was
one of the few small shops with demonstrated expertise in this area. And they didn't disappoint - the ECC
team articulated problems and recommendations to our executives effectively, and its structured
approach to doing the work was exactly what we needed."
- Bob Visco, Marketing Director / Fortis College
"The principals at East Coast Catalyst combine both digital strategy savvy and front-line execution
expertise in a unique and highly effective way. I consider myself one of their biggest fans.”
- Brian Piccolo, Digital Strategic Services / Liberty Mutual
44
Consulting Capabilities
DIGITAL STRATEGY & PLANNING
• Corporate and business unit digital strategy
• Digital roadmaps and visioning statements
• Marketing mix assessment and ROI modeling
• Vendor and technology selection
CREATIVE & UX STRATEGY
• Digital identity and branding planning
• Website design and development
planning
• Information architecture, wireframes,
user flows, audience definition
• User testing and heuristic reviews
• Animation, video, games planning
DIGITAL MARKETING PLANNING
• Digital marketing audits and assessments
• Search marketing
• Content marketing
• Social media marketing
• Email marketing
• Mobile marketing
• Display advertising and rich media
DIGITAL MARKETING OPTIMIZATION
• Digital platform optimization
• Conversion optimization
• Digital project management
• Analytics and reporting
• Interim CMO / VP-Marketing services
45
About East Coast Catalyst: Digital Strategy Approach
Comprehensive Approach to
Digital Strategy
The digital landscape has evolved at a
breakneck pace over the past decade,
with billions of dollars invested in new
technologies and solutions – resulting in
the proliferation of social media outlets,
infrastructure technologies, advertising
exchanges, and analytics platforms. As a
result, formulating digital strategies has
never been more complicated – or more
critical.
The East Coast Catalyst digital strategy
philosophy is rooted in an integrated
approach, taking into account the
intersection of strategy, marketing,
technology, innovation, and talent
management.
46
The East Coast Catalyst Approach to Digital Strategy
ECC’s digital strategy consulting philosophy is
rooted in four beliefs:
1) Smart digital strategy directly supports
differentiation and competitive advantage
2) Digital ecosystems are complex and must
balance user experience (platform) and
promotion (marketing) to be successful
3) Digital operations require constant
attention and investment
4) Digital tactics are almost always inter-
dependent with offline activities
Philosophy
47
The East Coast Catalyst Difference
Experience
Senior team whose individuals each bring 10+ years practical, hands-on digital strategy and
marketing optimization experience
Holistic Approach
Strategy → Platform & User Experience → Promotion → Analytics → Optimization
Tailored Methodologies & Techniques
Digital Strategy Planning, Digital Marketing Audit
Network of Digital Experts
Best-in-class specialists and team assembly on-the-fly; unparalleled access via
ChiefDigitalOfficer.net
Independence & Objectivity
Technology agnostic; no contracts with solution / software vendors; no financial relationships
with agencies or technology companies
48
The Sample Audit Timeline
Quick-Hit Recommendations for Immediate
ImplementationIII
Fact-Gathering, Research, Competitive Intelligence & Analysis
II
Discovery
I
~12 Weeks
Mid-Project Results Presentation to
Client TeamIV
Summary Results
PresentationV
49
Sample Audit Process
I. Discovery
Conduct interviews across the client organization. Gather information
about strategies, competencies, vendors, audience, messaging, customer
/ partner / staff requirements, and the competitive landscape, relying on
30-point assessment framework.
II. Analysis, Research &
Competitive Intelligence
Gathering
Conduct research outside the organization – assess competitor digital
operations, consult with domain experts, and identify best practices and
map how they relate to client’s infrastructure and requirements.
III. Quick-Hit
Recommendations
Based on early research findings, deliver recommendations to client to
implement in the short-term, which will have the ability to bolster
marketing performance, save money, and/or get the organization moving
in the right direction.
IV. Mid-Project
Presentation
Deliver mid-project findings to the client project team leadership. This
step inserts a formal deliverable into the process and keeps everyone
aligned, as well as allows ECC to share initial findings and solicit
feedback, and then make changes to the process as appropriate.
V. Final Recommendations
& Presentation
Deliver final presentation and report to the client planning team(s) via in-
person presentation(s). Document findings and fully transfer knowledge to
the client marketing, sales, IT and operations groups.

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Digital Marketing Audit Template (2016)

  • 1. An Anatomy of a Digital Audit Workshop Prepared by Tim Bourgeois December 1, 2016
  • 3. 3 Workshop Overview Marketing management has never been so exciting -- or daunting. The proliferation of digital tactics and lightweight technology has cleared the path for us to take genuine ownership of our operations, and be less reliant on other areas of the organization to do our jobs. While this new reality is empowering, it also comes with challenges. Indeed, today's senior marketing manager is not only tasked with traditional responsibilities such as brand shepherding and lead generation, but also line items such as data analysis, technology portfolio optimization, and vendor relations. The session will explain a comprehensive 30-point methodology for conducting an assessment, with specific focus on the following four areas of the marketing operation: • Advertising & Promotion: digital media (search, display / banners, classified, mobile, digital video, lead generation, sponsorships), organic search marketing, content marketing, social media, email marketing • Websites: copy, images, video / animation, landing pages, microsites, search, live chat, blogs • Technology: marketing automation, content management, analytics, and data management • Vendors: even mid-sized digital marketing operations often have 10+ vendors involved in maintenance and optimization
  • 4. 4 Workshop Goals • Leave the session with 4-5 practical techniques for meaningful cost- cutting or ROI improvement • Develop an understanding of the entire digital ecosystem and how an audit could be pursued at your own organization Most digital audits are focused on the following areas of emphasis:  Cost-savings: “Our spending on digital advertising, staff, and technology has doubled in the past three years, and we need to find ways to get spending under control.”  Performance improvement: “Our digital strategy is critical to the long-term health of the business and we need to make sure our digital investments are optimized.”  Competitive benchmarking: “We know we’re at a competitive disadvantage due to our digital strategy and we need to understand the precise pain points and how to respond.”
  • 5. 5 About Me: East Coast Catalyst & ChiefDigitalOfficer.net
  • 6. 6 About Me: Client Experience
  • 8. 8 U.S. Internet Advertising Revenues, 2005-2015
  • 9. 9 Global Digital Ad Market by Medium
  • 11. 11 US Digital Ad Market by Format
  • 13. 13 Rapid Expansion of New Territories
  • 14. 14 Insanely Complicated Digital Advertising Ecosystem
  • 15. 15 The Gartner Digital Marketing Transit Map
  • 16. 16 The Social Media Landscape
  • 17. 17 Programmatic Accounts for 50%+ of Display
  • 18. 183/15/2017 :: Page 18 May, 2015 Programmatic 90% Direct 10% Programmatic 50% Direct 50% 20162015 Instagram switches on self-service ads High Growth Platforms > Programmatic
  • 20. 20 Traditional Corporate Org Structure The traditional, function-based structure of corporations doesn’t accommodate successful digital business, which cuts across multiple functional areas.
  • 21. 21 Digital’s Impact is Far-Reaching
  • 22. 22 Why The Need for a Digital Audit & Roadmap? Executing successfully on digital strategies has never been more challenging. While the rapid proliferation of digital technologies and techniques over the past decade has fueled the growth of an exciting new industry, and which has enabled general managers and marketers to free themselves from the grips of the IT department, it has also created a disruptive environment that is challenging to manage. “In our experience, companies may be leaving as much as 20% to 30% of potential [digital advertising] returns on the table.” “Software is eating the world.“ (Marc Andreessen) “The CMO will spend more on IT than the CIO by 2017.” New research from BCG shows that today's marketing organizations "do not have the skills to operate in a digital world, and that the gaps and shortfalls are bigger than they assume."
  • 23. 23 Other Reasons for Audits & Roadmaps “Should I be using Outbrain?” • CMO at $100M manufacturing company “Do you think $9,000/month is enough for my paid search program? • CMO at $50M marketing company “Is Hubspot good?” • Numerous “I just hired a senior in college to make some noise for me on social media in between classes.” • Consulting firm CEO “My nephew is graduating from college this spring and I’m thinking of hiring him to run my website.” • Successful energy entrepreneur “What about the other 97% of my website visitors – why aren’t we getting their business too?” • $500M company CEO in response to hearing his company’s website performs at a 3% conversion rate Lots of confusion among senior executives about how to deploy digital strategy, and what is considered successful or unsuccessful.
  • 25. 25 Financial Incentives Company Revenues Digital Spend* Savings/Gains** $10,000,000 $187,500 $37,500 $25,000,000 $468,750 $93,750 $50,000,000 $937,500 $187,500 $100,000,000 $1,875,000 $375,000 $250,000,000 $4,687,500 $937,500 $500,000,000 $9,375,000 $1,875,000 $1,000,000,000 $18,750,000 $3,750,000 $5,000,000,000 $93,750,000 $18,750,000 $10,000,000,000 $187,500,000 $37,500,000 * Digital spend estimated at 25% of marketing budget; marketing budget assumed to be 7.5% of revenues ** Assumes 20% savings or performance gain as a result of audit & roadmap A typical company with $100M in sales can expect $375,000 in savings or performance gains following a digital audit.
  • 26. 26 Financial Incentives Company Revenues Digital Spend* Savings/Gains** $10,000,000 $187,500 $37,500 $25,000,000 $468,750 $93,750 $50,000,000 $937,500 $187,500 $100,000,000 $1,875,000 $375,000 $250,000,000 $4,687,500 $937,500 $500,000,000 $9,375,000 $1,875,000 $1,000,000,000 $18,750,000 $3,750,000 $5,000,000,000 $93,750,000 $18,750,000 $10,000,000,000 $187,500,000 $37,500,000 * Digital spend estimated at 25% of marketing budget; marketing budget assumed to be 7.5% of revenues ** Assumes 20% savings or performance gain as a result of audit & roadmap The most likely candidates for a digital audit are companies with $50M - $1B in annual sales. Small companies aren’t spending enough on digital yet to justify an audit, and very large companies are either too complex or impenetrable due to their existing agency relationships.
  • 27. 27 Making the Case for an Audit Your CEO Is Going to Start Asking Questions Combined factors of increased profile + budget Playing Catch-Up is a Bad Spot If the audit is requested by a CEO or CFO, that puts marketing in a vulnerable positions Objectivity is in Short Supply If your vendor’s tool is a hammer, every problem looks like a nail If You’re Not Confused, You’re Not Paying Attention The growth of digital advertising and the digital tools and technologies marketplace has resulted in sprawling, Frankenstein-like digital operations with various inefficiencies (Practically) Every Other Group is Doing It Many other corporate groups conduct audits regularly: finance, IT, risk, energy, HR, etc. Your CFO Will Love You For It It’s the CFO’s job to keep an eye on spending, and while many digital audits result in budget increase recommendations, it can also serve as a compelling tool to influence CFO thinking about digital investments
  • 29. 29 Digital Audit Approach (Framework) The East Coast Catalyst digital strategy framework is a tested methodology that ensures every aspect of an operation is assessed and incorporated into the planning process. CATEGORY AREA OF FOCUS DESCRIPTION / INVENTORY ASSESSMENT OPTIONS RECOMMENDATIONS Strategy Alignment with Corporate Sales, Marketing & Operational Objectives Strategy Competitive Benchmarking: Digital Footprint & Reach Strategy Competitive Benchmarking: Competitor Ad Spending & Budgets Infrastructure Hosting: Setup & Configuration Infrastructure Hosting: Performance & Scability Applications Content Management System (CMS) Applications Baseline Functionality (Forms, Personalization) Applications Database / Data Warehouse Applications Ecommerce Applications CRM / Marketing Technology & Automation Applications Custom Applications / Intranet / Extranet Applications Community Applications Mobile Apps / Mobility Creative/Design User Experience Creative/Design Branding / Identity Creative/Design Website Assets (Imagery, Content, Widgets) Creative/Design Rich Media / Video Promotion Social Media Promotion Search Engine Optimization / Organic Search Promotion Pay-Per-Click (PPC) Search Marketing / Paid Search Promotion Email Marketing Promotion Content Marketing Promotion Mobile Marketing Promotion Display Advertising Promotion Online PR Analytics Tool(s) Setup & Configuration Analytics Conversion / Goal Tracking Analytics Reporting: Business Process Talent / Skills Staff Capability Assessment Vendors Vendor Mix, Contracts & Performance Assessment THE DIGITAL STRATEGY AUDIT & ROADMAP FRAMEWORK
  • 30. 30 Digital Audit Approach (Framework) (continued) • Strategy: Alignment with corporate goals • Strategy: Competitor benchmarking •Infrastructure: Hosting vendor & contract evaluation • Infrastructure: Hosting performance & scalability • Infrastructure: Business process management methods • Infrastructure: Database / data warehouse • Website: Application (CMS) • Website: Application (ECommerce) • Website: Application (CRM / Marketing Automation) • Website: Intranet / Extranet • Website: Custom application(s) • Website: User experience • Website: Community • Website: Multimedia assets • Creative: Communication strategy & offline integration • Creative: Digital asset review ECC’s digital marketing strategy discovery activities may include the investigation into any one or all of the following components of a digital operation. • Promotion: Display advertising • Promotion: Organic search engine optimization (SEO) • Promotion: Pay-per-click (PPC) advertising • Promotion: Email marketing • Promotion: Content marketing • Promotion: Mobile marketing • Promotion: Online public relations (PR) • Promotion/Community: Social media • Analytics: Systems & setup • Analytics: Conversion tracking • Competitor Review: Site assets & performance assessment • Competitor Review: Digital advertising activities & budget benchmarking • Talent/Skills Review: Assess capabilities & composition of client team • Vendor / Partner review: Vendor management relationships, contracts, and optimization planning
  • 31. 31 Sample Audit Deliverables Assessment results and strategic recommendations will be delivered in two primary formats: a series of reporting documents and in-person presentations. Prior ECC digital strategy audit and roadmap assignments have yielded reports that address the following in each major area of the project (planning, infrastructure, applications, creative, promotion, analytics, vendors and staff): - Description / inventory - Research findings (quotes from the field, industry experts) - Competitive benchmarks - Assessment (weak, industry standard, strong) + insights - Options - Opportunity - Costs - Recommendations
  • 32. 32 Area of Focus: Infrastructure & Applications Hosting Hosting is literally the foundation of any digital marketing operation, but often doesn’t get the attention or priority it deserves. Website Speed Most experts agree that sites should download in under five seconds. More recently, studies have shown that users abandon sites in great numbers after two seconds. Marketing Technology The marketing technology category has exploded in recent years; according to VentureBeat, the sector is growing at 50% annually. Responsive Design / Mobile Friendly There’s no avoiding mobile. The statistics are overwhelming, in both B2C and B2B. And it’s more of an infrastructure (applications) problem than a design problem.
  • 33. 33 Area of Focus: Promotion Search Marketing Paid search marketing (PPC) accounts for 40%+ of all digital advertising. Mobile Marketing With phone and tablet internet usage officially overtaking PCs this year, a mobile strategy is a must-have in every digital marketing portfolio. Multi-Channel Marketing Multichannel marketing is one of the most frequently discussed topics among digital marketing executives these days. But given its relative newness, you still have time to get out ahead of the pack if you move soon. Email Marketing "Newsletters are clicking because readers have grown tired of the endless stream of information on the Internet."
  • 34. 34 Area of Focus: Vendor Management Understand the Vendor Landscape Ad agencies, marketing services providers, marketing technology companies Procurement Wizardry “Procurement departments and others have been busily grinding down fees for decades now” Vendor Portfolio Management The very largest companies can afford one-stop-shop relationships with full-service agencies, and they’ll do this job for clients. The rest of us need to fend for ourselves. Be a Good Client When it comes to digital, skilled professionals have myriad options these days.
  • 35. 35 Tools of the Trade The Google ‘Stack’ Google Analytics, AdWords, Search Console (formerly Webmaster Tools), Tag Manager Competitive Benchmarking SpyFu, Compete User Experience Optimizely, Crazy Egg Data Collection In-person interviews, surveys
  • 36. 36 CASE STUDY [The case study used during the workshop contains sensitive and propriety information, and therefore is not included in this document.]
  • 37. 37 SUMMARY & KEY TAKEAWAYS
  • 38. 38 Areas of Emphasis The “80/20” rule applies to digital audits. 80% of your material findings are going to be gleaned from 20% of the operation. These areas typically include one of the following: • Paid digital advertising: pay-per-click (ppc) search and display advertising (including mobile) combine to account for about 75% of all digital advertising, and these areas are the most fertile for auditing, if only because of their size • Vendor management: mis-aligned or mis-managed vendors are the #1 sources of digital operation leakage • Staffing: the largest digital agencies have been managing annual turnover rates in excess of 25% for years; corporations don’t typically experience this rate of turnover, which means that unless job descriptions are being proactively evolved each year, the “digital” job someone was hired to do 4-5 years ago is probably dramatically different today, so mis-aligment will be apparent and problematic
  • 39. 39 Keys to Success Digital audits can be challenging to conduct successfully due to their cross- departmental variables and lack of generally agreed-upon best practice benchmarks to measure against. In our experience, successful digital audits include the following characteristics: • Executive sponsorship: while this factor is true for most projects, it’s especially pertinent to digital audits because many departments are necessary for fact-gathering; as such, a C-level sponsor is typically required for companies with less than $500M in sales • Stakeholder meetings at each phase of the project: most audits are complex and regular education throughout assignments is critical for gaining the buy-in necessary to implement post- audit recommendations (such as vendor re-balancing or new budget acquisition) • Realistic scope: comprehensive digital audits can only be achieved with overt buy-in from the board, CEO and/or CFO, and this commitment is unusual, especially at large companies; however, focused digital audits (on specific areas of the digital value chain, such as PPC, marketing technology, staffing, etc.) can also result in significant cost-savings or performance improvements, while also serving as a path to a comprehensive audit; be realistic about what can be included in your audit and scope it in a way that affords the best chance of success • Avoidance of sacred cows & red herrings: if the organization has just committed to a multi- year, enterprise-class contract with a huge software company for its marketing suite, consider that a sunk cost and figure out a way to make the most of it; at the same time, many vendor relationships can be reworked or even canceled without much difficulty – knowing the difference between these two situations can be the difference between a successful or failed audit
  • 40. 40 East Coast Catalyst 300 Summer Street, Boston, MA 02210 617-314-6400 www.eastcoastcatalyst.com @ECoastCatalyst @ChiefDigOfficer Tim Bourgeois | tbourgeois@eastcoastcatalyst.com
  • 42. 42 About East Coast Catalyst Located in the heart of the Boston’s Innovation District, ECC is a digital consultancy that specializes in helping clients optimize digital operations. The firm’s principals – Tim Bourgeois and David Polcaro – each bring more than a decade of experience in the digital industry to every client engagement. ECC’s core consulting offerings include digital strategy, digital audits, user experience planning, and digital marketing optimization. Current and active ECC clients span the spectrum of Fortune 500 organizations and start-ups alike, including: Apperian, Attivio, Cisbio, North Bridge Ventures, Resolution (an Omnicom company), and Signiant. Prior to launching ECC, the firm’s principals managed Pixel Bridge, a full-service interactive marketing and web development agency. Acquired by AMP Agency, the firm delivered a range of digital agency and consulting services to a client list that included global brands such as Black & Decker, The Boston Globe, Comcast, Harvard, ITW, Sulzer, Thomson-Reuters, and TIBCO. For more information, please visit EastCoastCatalyst.com. East Coast Catalyst is a digital strategy consulting firm.
  • 43. 43 About East Coast Catalyst: What Clients Say “East Coast Catalyst’s fresh approach to digital strategy combines analytical rigor, innovative thinking, and nuts-and-bolts best practices. The firm is a bona fide hidden gem. I’ve hired the company on more than one occasion and sing their praises at every opportunity.” - Alan Osetek, Global President / Resolution, An Omnicom Company “East Coast Catalyst is the rare digital firm that has demonstrated expertise in every area of the value chain: strategy, tactics, execution and optimization. I've personally been a client for more than five years – at two different companies – and I recommend them enthusiastically and without hesitation. - Mark Lorion, CMO / Apperian "We wanted to work with a nimble company on our digital strategy project, and East Coast Catalyst was one of the few small shops with demonstrated expertise in this area. And they didn't disappoint - the ECC team articulated problems and recommendations to our executives effectively, and its structured approach to doing the work was exactly what we needed." - Bob Visco, Marketing Director / Fortis College "The principals at East Coast Catalyst combine both digital strategy savvy and front-line execution expertise in a unique and highly effective way. I consider myself one of their biggest fans.” - Brian Piccolo, Digital Strategic Services / Liberty Mutual
  • 44. 44 Consulting Capabilities DIGITAL STRATEGY & PLANNING • Corporate and business unit digital strategy • Digital roadmaps and visioning statements • Marketing mix assessment and ROI modeling • Vendor and technology selection CREATIVE & UX STRATEGY • Digital identity and branding planning • Website design and development planning • Information architecture, wireframes, user flows, audience definition • User testing and heuristic reviews • Animation, video, games planning DIGITAL MARKETING PLANNING • Digital marketing audits and assessments • Search marketing • Content marketing • Social media marketing • Email marketing • Mobile marketing • Display advertising and rich media DIGITAL MARKETING OPTIMIZATION • Digital platform optimization • Conversion optimization • Digital project management • Analytics and reporting • Interim CMO / VP-Marketing services
  • 45. 45 About East Coast Catalyst: Digital Strategy Approach Comprehensive Approach to Digital Strategy The digital landscape has evolved at a breakneck pace over the past decade, with billions of dollars invested in new technologies and solutions – resulting in the proliferation of social media outlets, infrastructure technologies, advertising exchanges, and analytics platforms. As a result, formulating digital strategies has never been more complicated – or more critical. The East Coast Catalyst digital strategy philosophy is rooted in an integrated approach, taking into account the intersection of strategy, marketing, technology, innovation, and talent management.
  • 46. 46 The East Coast Catalyst Approach to Digital Strategy ECC’s digital strategy consulting philosophy is rooted in four beliefs: 1) Smart digital strategy directly supports differentiation and competitive advantage 2) Digital ecosystems are complex and must balance user experience (platform) and promotion (marketing) to be successful 3) Digital operations require constant attention and investment 4) Digital tactics are almost always inter- dependent with offline activities Philosophy
  • 47. 47 The East Coast Catalyst Difference Experience Senior team whose individuals each bring 10+ years practical, hands-on digital strategy and marketing optimization experience Holistic Approach Strategy → Platform & User Experience → Promotion → Analytics → Optimization Tailored Methodologies & Techniques Digital Strategy Planning, Digital Marketing Audit Network of Digital Experts Best-in-class specialists and team assembly on-the-fly; unparalleled access via ChiefDigitalOfficer.net Independence & Objectivity Technology agnostic; no contracts with solution / software vendors; no financial relationships with agencies or technology companies
  • 48. 48 The Sample Audit Timeline Quick-Hit Recommendations for Immediate ImplementationIII Fact-Gathering, Research, Competitive Intelligence & Analysis II Discovery I ~12 Weeks Mid-Project Results Presentation to Client TeamIV Summary Results PresentationV
  • 49. 49 Sample Audit Process I. Discovery Conduct interviews across the client organization. Gather information about strategies, competencies, vendors, audience, messaging, customer / partner / staff requirements, and the competitive landscape, relying on 30-point assessment framework. II. Analysis, Research & Competitive Intelligence Gathering Conduct research outside the organization – assess competitor digital operations, consult with domain experts, and identify best practices and map how they relate to client’s infrastructure and requirements. III. Quick-Hit Recommendations Based on early research findings, deliver recommendations to client to implement in the short-term, which will have the ability to bolster marketing performance, save money, and/or get the organization moving in the right direction. IV. Mid-Project Presentation Deliver mid-project findings to the client project team leadership. This step inserts a formal deliverable into the process and keeps everyone aligned, as well as allows ECC to share initial findings and solicit feedback, and then make changes to the process as appropriate. V. Final Recommendations & Presentation Deliver final presentation and report to the client planning team(s) via in- person presentation(s). Document findings and fully transfer knowledge to the client marketing, sales, IT and operations groups.