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Managing Your Marketing Dollars:
Cost-Effective Ways to Measure Your Spend and ROI
                  July 28, 2011
                  Sponsored by:
OUR SPONSOR
JACK NEFF
Editor-at-Large
Advertising Age
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For CPG companies, a major challenge is
gaining visibility into marketing spend that
is spread across various categories and
brands. As a result, marketing processes
can become inefficient, bogged down by
this lack of insight.
OUR PANEL
Rex Briggs
CEO
Marketing Evolution

Mary O’Connell
Director, Global Digital Marketing and Public Relations
Clorox Co.

Monique Duquette
Sr. Applications Consultant
Aprimo
REX BRIGGS
CEO
Marketing Evolution
Telmar Matterhorn ROI (TMR)
How the connection between Marketing ROI data and
      software will change marketing planning


       Rex Briggs, CEO Marketing Evolution
              rex@marketingevolution.com
What is a SIRF?
         And why does it matter?
           Spend-to-Impact
           Response Function


Impact



                Spend
The Most Broadly Validated Solution for ROI Measurement:
                     The “Best Practice” Standard
                               1. Leading independent marketing & research associations
                                   – The ARF (Advertising Research Foundation) in coordination with
                                       - ANA (Association of National Advertisers)
                                       - AAAA (American Association of Advertising Agencies)
                               2. Leading independent academics (partial list)
                                   – Steven Levitt, award winning economist, University of Chicago,
                                      Author, Freakonomics
                                   – John List, foremost field economist, University of Chicago
                                   – Kirthi Kalayanam, digital and retail measurement leader,
                                      University of Santa Clara, author of several Harvard Business
                                      Review articles
                               3. Media companies & trade associations
                                   – IAB (Interactive Advertising Bureau)
                                   – NAA (Newspaper Association of America)
Partial list of Marketers:         – Magazine (Time Inc, Conde Nast, Meredith, etc.)
                                   – TV (Fox, Disney, MTV Networks, etc.)
                               4. Best practice reviews
                                   – Corporate Executive Board, (B2C & B2B - US, Europe)
                                   – Forrester
                                   – ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages
                                   – Journal of Advertising Research (Dec 06)
Layering Media To Maximize ROI & Revenue
                        Case Example: CPG Marketer

                        Established Brand, seasonal purchase
                        pattern, message designed to
                        increase purchase intent


                                Online

                      TV (Trough months)*




           TV (in-season)

       Social
     Search
Telmar Matterhorn ROI (TMR)
The new syndicated ROI media planning solution, blending
 the core competencies of Marketing Evolution & Telmar.



• For years, Telmar has            • ME’s ROI experts have
  provided customized ROI            delivered 100s of cross-media
  software & service solutions       ROMO engagements around
                                     the world
• Combines Reach/ Frequency
  to optimize ROI using a multi-   • ROMO benchmark data
  media planning interface           provides media impact across
                                     verticals, targets, campaign
                                     objectives and situations
The Most Broadly Validated Solution for ROI Measurement:
                     The “Best Practice” Standard
                               1. Leading independent marketing & research associations
                                   – The ARF (Advertising Research Foundation) in coordination with
                                       - ANA (Association of National Advertisers)
                                       - AAAA (American Association of Advertising Agencies)
                               2. Leading independent academics (partial list)
                                   – Steven Levitt, award winning economist, University of Chicago,
                                      Author, Freakonomics
                                   – John List, foremost field economist, University of Chicago
                                   – Kirthi Kalayanam, digital and retail measurement leader,
                                      University of Santa Clara, author of several Harvard Business
                                      Review articles
                               3. Media companies & trade associations
                                   – IAB (Interactive Advertising Bureau)
                                   – NAA (Newspaper Association of America)
Partial list of Marketers:         – Magazine (Time Inc, Conde Nast, Meredith, etc.)
                                   – TV (Fox, Disney, MTV Networks, etc.)
                               4. Best practice reviews
                                   – Corporate Executive Board, (B2C & B2B - US, Europe)
                                   – Forrester
                                   – ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages
                                   – Journal of Advertising Research (Dec 06)
Different brands in different categories face different
challenges to growth…


      …therefore need different optimizations

TMR Accounts for Different Categories & Objectives


                –   Awareness
                –   Positive Brand Perceptions
                –   Purchase Intent
                –   Advocacy
                –   Sales
Old vs. New Model of Value Creation:
TMR accounts for BOTH.

Mass Media Model:            Social Media Model:
                                     Each interaction is an
B2C    1000 impression = $10 C2C     impression
          $10 CPM = $0.50 CPI



                                        Influenced to
                                        interact with brand.
                                                                 Pass
                                        Some pass along.
                                                                 along
                                                                 continues
                                Pass
                                Along
                                        No brand visit, but
                                        positively influenced.
                                        Some pass along.
How Do We Create the Most Impact Per Dollar Spent?
         Situation
   Vertical-specific, campaign
  situation & marketer’s goals

              +
     Specific Media
      Placements
    “Impact curves” of which
 placements deliver more value




                                 ‘Impact Based’
   + Targets + Costs             Recommendation
TMR Accounts for Different Marketing
            Objectives
                                                                 New Brand
          Established Brand
                                                            Upper-funnel objectives
        Lower-funnel objectives
                                                                                      New Brand
                             Established
                                Brand



                                                           New Brand challenge on
    High awareness and
                                                          the other hand focuses on
   consideration leads to
                                                                familiarity and
 looking to maximize sales
                                                                 consideration
           volume




Unit sales up X% through impact on lower funnel metrics   Unit sales up X% through widening of the upper funnel
Based on Benchmarks of Impact Curves
                                Each media channel has a different value,
                                     depending on funnel objectives
   Customer Purchase Funnel
                                                                     Online
      & Campaign Impact                                         Magazine

                New Brand / P25-54Brand
                       Established                           Radio

                                                          Network TV




Unit sales up X% through impact on lower funnel metrics

                                                                                                 P25-54
                                                                               Of Ad Exposure



                                                            Each point represents actual tracking responses
                                                            from hundreds of ROMO client campaign studies
How Do We Create the Most Impact Per Dollar Spent?
         Situation
   Vertical-specific, campaign
  situation & marketer’s goals

              +
     Specific Media
      Placements
    “Impact curves” of which
 placements deliver more value




                                 ‘Impact Based’
   + Targets + Costs             Recommendation
Scenario Examples
     Changing The Objective Changes the Optimization

Awareness: M25-54                              Purchase Intent: M25-54

                 Magazine                                          Magazine
                 Digital Display                                   Digital Display
                 Cinema
                                                                   Cinema
                    Syndication
                                                                   Syndication

                    Network TV
                                                                   Network TV


                     Cable TV                                       Cable TV



  Changing objective to intent from awareness shows a
  noticeable shift from Network TV to Digital Display
Scenario Examples
 Changing the Target Audience Changes Optimization

Awareness: M25-54                                   Awareness: W25-54
                                                                        Newspapers
                    Magazine                                            Magazine
                    Digital Display                                     Digital Display
                    Cinema                                              Cinema

                    Syndication                                         Syndication


                    Network TV                                          Network TV



                    Cable TV                                            Cable TV


                     While overall changes aren’t
                     drastic………….
More Granularity = Better ROI
   M25-54                          W25-54
Digital (most to least $)      Digital (most to least $)
• Search Engines               • Search Engines
•Weather                       •Weather
•Sports                        •E-mail
•E-mail                        •Social
•Social                        •Entertainment

Network TV (most to least $)   Network TV (most to least $)
•Early News                    •Early Morning
•Early Morning                 •Daytime
•Sunday Morning                •Early News
•Late Night                    •Sunday Morning
•Sunday Night Football         •Late Night

Magazines (most to least $)    Magazines (most to least $)
•Men                           •Women
•Fishing Hunting               •General Editorial
•Motorcycling                  •Health
•Automotive                    •Epicurean
•Video Games
What is `Basecamp’ vs ‘Summit’?

Swap in your own impact
data, utilize customized cuts
from ME’s database and/or
go more granular with media
levers, targets etc




Our syndicated offering with
100+ levers in 10+ verticals

                           TMR: Software-Based Command Center
• Flexible planning tool , integrating multiple data feeds to enable alignment & collaboration
• Marketing, research & agency teams can simulate trade-offs
• Scenario Planning different budget levels, pricing, etc.
Telmar Matterhorn ROI (TMR)
• A revolutionary new budget planning tool…
• Based on billions of dollars in marketing
  spending analyzed independently.
• Build plans on key metrics such as:
   – Awareness, Brand Image Shift,
      Increasing Demand/Purchase Intent,
      Sales Conversion, etc.
• Currently serving the following verticals:
   – Auto, Pharma, Entertainment,
      CPG (Food, Beverage, Health/Beauty)
      Restaurant, Retail, etc.
• Schedule a hands-on demo:
   • Steve Riddle (sriddle@telmar.com)
   • Jason Wertheimer (jason.wertheimer@marketingevolution.com)
   • Rex Briggs (rex@marketingevolution.com)
MARY O’CONNELL
Director, Global Digital Marketing and
Public Relations
Clorox Co.
Measuring Return on Objectives




                                                     Mary O’Connell
                 Director l Digital Marketing l The Clorox Company
                                                       July 28, 2011
“80 percent of success
is showing up.”
          -Woody Allen
Turning up the volume

        For most of us, current measurement models don’t capture ever increasing digital
        executions in their current state
                                                 Each driver has a coefficient that

                                  Base Price
                                                    defines the direction and
                                                    magnitude of its effect on
                                                                                         TV
                                                             volume.
                   Distribution                                                                 Radio
          Trend                                                                                      Print

    TPR                                                                                                  PR

                                                                                                       Online Banner*
  Feature Only                                     Brand Volume
    Display Only                                                                                     Streaming Video


    Feature&Display                                                                                   Search


                   FSI                                                                       Website
                           Competition
                                                                                  Facebook/Twitter
                                         Seasonality

                                                                         CRM-emails
It’s a moving target




•Mobile, mobile everywhere

•Partial attention syndrome

•Immediacy and high alert

•Customization

•Hyper-targeting
The journey to real-time marketing


                                                 Success: Digital analytics
                                                for real-time marketing and    Digital Analytics for
                                                   ROI measurement for             growth and
                                                      demand creation         competitive advantage




                     It’s as easy as:
                     1.   Agree on objectives
                     2.   Measure
                     3.   Iterate




                                                   Starting Point
The goal: 360 measurement




      Most current models                                            Digital Engagement Ecosystem

                                                                     Insights: Strategic feedback for real-time marketing


                                                                              Digital             Strategies &             Innovation &
             Digital
                                                                             Execution              Tactics             Business Strategies
            Execution




                                        Power of
                                         Digital

                                                   Early indictors
                Semi-annually
                 or annually




                                                                              Behavioral                     KPIs and Engagement Score
                                                                             Measurement

                                                                             Attitudinal
                                                                            Measurement


                                  Expand scope of                            Financial
           Financial                                                                                      ROI and Efficiencies
                                Financial Measurement                       Measurement
          Measurement


                                                                       Concluding indictor

    Spend/Tactic Optimization                                          Spend/Tactic Optimization
        and Forecasting                                                    and Forecasting




                                                                                Real-time marketing
Creating an engagement model: It starts with a game plan




                                            -------------------------------------------------------------
              All of digital is a learning lab. Treat it that way.
                                                                                                                  Rather than just
                                                                                                                  grabbing for the
                                         “If I do Y,                                                              latest shiny object,
                                         then Z will                                                              test your way in.
                                         happen…”                                                                 You’ll accelerate
                                                                                                                  your learning.
                                 “I wonder
                                 what would
                                 happen if….”




  Set hypotheses l Map to growth priorities l Prioritize l Pre-commit to next steps



          1                        2                                                                        3 3
                                                                                                              3   4
The case for clear KPIs: Return on Objectives




              Agree on universal KPIs for each tactic, typically
          1   volume/transactional metrics such as friends, followers,
              sentiment, posts, ratings



          2   Then set engagement metrics for the same tactics. If fans are
              your universal KPI for Facebook, then set interactions per fan
              as an engagement metric.
The engagement model : A bridge to financials (Social media example)

                  -------------------------------------------------------------------------------------------------------




                                                                                                                                       -----
               Financial                                                                                                           Transactional
               Outcomes                                                                                                            Metrics

                  •Sales                                                                                                                            Friends
                  •Profits                                                                                                                          Followers
                                                                                                                                                    Sentiment
                                                                                                                                                    Posts
                                                              -----------------------------------------------------------------------------------   Ratings


                                                      ----------




                                                                                                   ----------
                     Financial                      Behavioral                                  Attitudinal                        Transactional
                     Outcomes                       Objectives                                  Objectives                         Metrics


                        •Sales                      •Behavioral metrics                         •Attitudinal metrics                •Friends
                        •Profits
                                                    •Qualified leads                            •Perceptions                        •Followers
                                                    •Engagement                                 •Affinity                           •Sentiment
                                                    indicators
                                                                                                •Likelihood to                      •Posts
                                                                                                recommend
                                                                                                                                    •Ratings




Source: Corporate Executive Board
Multitude of metrics


                               Multitude of metrics

  Impressions                  Pageviews/Video Views
                                                                    Frequency
         Reach                 DataCore          PR                   Bounce Rate
  Click-rate                                   agencies
                  YouTube            Vindico              Twitter       Emails Sent
                        Facebook                 Google Analytics
                 DoubleClick      WebTrends            Database
       Clicks               Dozens of Data Sources                              Visits
                  Google AdWords                          ePrize
       Opt-Ins
                                    Yahoo! Search
                 Responsys
     Open rate
                                          Individual Publishers
                       MSN Ad Center
                   Coupons Inc.                     Listening

                 Active Users Codes Entered Conversion Rate
MONIQUE DUQUETTE
Sr. Applications Consultant
Aprimo
Managing Your Marketing Dollars:
Cost-Effective ways to Measure Your Spend
and ROI

Monique Duquette, Aprimo

             Copyright © 2011 by Teradata Corporation
There is a Revolution in Marketing




               Copyright © 2011 by Teradata Corporation
ROI, Channel Integration Plagues CMOs


       What is Most Broken in Marketing Today?

                                                                            37%




                                            27%




             15%

                          10%                                   10%




         Too many    Perceived     Lack of      Channel   Correlating
           silos   lack of value marketing consistency marketing
                 from marketing channel      in messaging to revenue
                                 integration



                                                                      CMO Survey/Argyle Executive Forum




                     Copyright © 2011 by Teradata Corporation
Current State – Manual. Disconnected. Inefficient.




Budgeting & Tracking                                              Campaign Proposals




                   Workflow & Project Mgmt

                       Copyright © 2011 by Teradata Corporation
Multiple Solutions Inhibit Marketing Effectiveness




                                                            • Low value realization
                                                            • Data translation issues
                                                            • Lack of usability and integration
                                                            • Difficult to manage multiple
                                                              licenses, interfaces, data
                                                            • Lack of automated prospect
                                                              engagement across channels


Integrated marketing automation platform

Multiple separate marketing applications




                                     Aberdeen Group
                                     Best in Class Website Results: 3 Leading TechnologiesThat Work Better as 1




                                 Copyright © 2011 by Teradata Corporation
Future State – Evaluate. Collaborate. Act

                                                        Category/
                               Social                                            Product
                                                          Brand                                      Incentives
                               Media                     Interest              Information




Better Customer Experience                                         More Efficient & Effective Marketing
• Channel preference/convenience                                   • Creates relationships
• Ability to easily find Product/brand information                 • Drives loyalty & satisfaction
                                                                   • Saves on agency costs
• Relevant & timely promotional incentives
                                                                   • Focus on creative, messaging, offers
• Highly personalized communications delivered
  more frequently                                                  • Increases average purchase price
                                                                   • Store/product/brand recommendations




                                    Copyright © 2011 by Teradata Corporation
Understanding ROI




              Copyright © 2011 by Teradata Corporation
ROI - How do I get there?




                                  +
        Ingredients                                         Tools/Appliances

  •   Marketing Spend                                 •     Strategic Alignment
  •   Sales/Revenue Data                              •     Operational
  •   Response/External                                     Efficiency
      Information                                     •     Cross-brand
                                                            Coordination




                      Copyright © 2011 by Teradata Corporation
Aprimo Integrated Marketing Management




              Copyright © 2011 by Teradata Corporation
Opportunities —
    Channels, Collaboration, Performance


                                                              Increase marketing directly with consumers
      CHANNELS



1                       Proliferation of New
                       Engagement Channels
                                                              Expectations for relevancy from consumers
                                                              Empower field marketers to engage with
                                                               relevant data
       COLLABORATION




                                                              Reduce inefficiencies working with agencies

2                       Improve Agency and
                       Internal Collaboration
                                                              Improve processes and interactions with internal
                                                               teams
                                                              Manage the campaign execution processes
      PERFORMANCE




                                                              Gain visibility to marketing campaigns being
                       Improving Marketing                     executed
3                        Performance &
                          Accountability
                                                              Adjust marketing spend based on performance
                                                              Streamline marketing spend




                                         Copyright © 2011 by Teradata Corporation
THANK YOU!



      Q&A
         sponsored by:
THANK YOU!

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Managing Your Marketing $S Cost Effective Ways To Measure Your Spend And Roi Aprimo

  • 1. Managing Your Marketing Dollars: Cost-Effective Ways to Measure Your Spend and ROI July 28, 2011 Sponsored by:
  • 4. HOUSEKEEPING Submit Questions
  • 5. HOUSEKEEPING Download Slides
  • 6. TWEET #AAWEB
  • 7. For CPG companies, a major challenge is gaining visibility into marketing spend that is spread across various categories and brands. As a result, marketing processes can become inefficient, bogged down by this lack of insight.
  • 8. OUR PANEL Rex Briggs CEO Marketing Evolution Mary O’Connell Director, Global Digital Marketing and Public Relations Clorox Co. Monique Duquette Sr. Applications Consultant Aprimo
  • 10. Telmar Matterhorn ROI (TMR) How the connection between Marketing ROI data and software will change marketing planning Rex Briggs, CEO Marketing Evolution rex@marketingevolution.com
  • 11. What is a SIRF? And why does it matter? Spend-to-Impact Response Function Impact Spend
  • 12. The Most Broadly Validated Solution for ROI Measurement: The “Best Practice” Standard 1. Leading independent marketing & research associations – The ARF (Advertising Research Foundation) in coordination with - ANA (Association of National Advertisers) - AAAA (American Association of Advertising Agencies) 2. Leading independent academics (partial list) – Steven Levitt, award winning economist, University of Chicago, Author, Freakonomics – John List, foremost field economist, University of Chicago – Kirthi Kalayanam, digital and retail measurement leader, University of Santa Clara, author of several Harvard Business Review articles 3. Media companies & trade associations – IAB (Interactive Advertising Bureau) – NAA (Newspaper Association of America) Partial list of Marketers: – Magazine (Time Inc, Conde Nast, Meredith, etc.) – TV (Fox, Disney, MTV Networks, etc.) 4. Best practice reviews – Corporate Executive Board, (B2C & B2B - US, Europe) – Forrester – ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages – Journal of Advertising Research (Dec 06)
  • 13. Layering Media To Maximize ROI & Revenue Case Example: CPG Marketer Established Brand, seasonal purchase pattern, message designed to increase purchase intent Online TV (Trough months)* TV (in-season) Social Search
  • 14. Telmar Matterhorn ROI (TMR) The new syndicated ROI media planning solution, blending the core competencies of Marketing Evolution & Telmar. • For years, Telmar has • ME’s ROI experts have provided customized ROI delivered 100s of cross-media software & service solutions ROMO engagements around the world • Combines Reach/ Frequency to optimize ROI using a multi- • ROMO benchmark data media planning interface provides media impact across verticals, targets, campaign objectives and situations
  • 15. The Most Broadly Validated Solution for ROI Measurement: The “Best Practice” Standard 1. Leading independent marketing & research associations – The ARF (Advertising Research Foundation) in coordination with - ANA (Association of National Advertisers) - AAAA (American Association of Advertising Agencies) 2. Leading independent academics (partial list) – Steven Levitt, award winning economist, University of Chicago, Author, Freakonomics – John List, foremost field economist, University of Chicago – Kirthi Kalayanam, digital and retail measurement leader, University of Santa Clara, author of several Harvard Business Review articles 3. Media companies & trade associations – IAB (Interactive Advertising Bureau) – NAA (Newspaper Association of America) Partial list of Marketers: – Magazine (Time Inc, Conde Nast, Meredith, etc.) – TV (Fox, Disney, MTV Networks, etc.) 4. Best practice reviews – Corporate Executive Board, (B2C & B2B - US, Europe) – Forrester – ESOMAR – “best practices” Wiley & Sons, April ‘07, 60 pages – Journal of Advertising Research (Dec 06)
  • 16. Different brands in different categories face different challenges to growth… …therefore need different optimizations TMR Accounts for Different Categories & Objectives – Awareness – Positive Brand Perceptions – Purchase Intent – Advocacy – Sales
  • 17. Old vs. New Model of Value Creation: TMR accounts for BOTH. Mass Media Model: Social Media Model: Each interaction is an B2C 1000 impression = $10 C2C impression $10 CPM = $0.50 CPI Influenced to interact with brand. Pass Some pass along. along continues Pass Along No brand visit, but positively influenced. Some pass along.
  • 18. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaign situation & marketer’s goals + Specific Media Placements “Impact curves” of which placements deliver more value ‘Impact Based’ + Targets + Costs Recommendation
  • 19. TMR Accounts for Different Marketing Objectives New Brand Established Brand Upper-funnel objectives Lower-funnel objectives New Brand Established Brand New Brand challenge on High awareness and the other hand focuses on consideration leads to familiarity and looking to maximize sales consideration volume Unit sales up X% through impact on lower funnel metrics Unit sales up X% through widening of the upper funnel
  • 20. Based on Benchmarks of Impact Curves Each media channel has a different value, depending on funnel objectives Customer Purchase Funnel Online & Campaign Impact Magazine New Brand / P25-54Brand Established Radio Network TV Unit sales up X% through impact on lower funnel metrics P25-54 Of Ad Exposure Each point represents actual tracking responses from hundreds of ROMO client campaign studies
  • 21. How Do We Create the Most Impact Per Dollar Spent? Situation Vertical-specific, campaign situation & marketer’s goals + Specific Media Placements “Impact curves” of which placements deliver more value ‘Impact Based’ + Targets + Costs Recommendation
  • 22. Scenario Examples Changing The Objective Changes the Optimization Awareness: M25-54 Purchase Intent: M25-54 Magazine Magazine Digital Display Digital Display Cinema Cinema Syndication Syndication Network TV Network TV Cable TV Cable TV Changing objective to intent from awareness shows a noticeable shift from Network TV to Digital Display
  • 23. Scenario Examples Changing the Target Audience Changes Optimization Awareness: M25-54 Awareness: W25-54 Newspapers Magazine Magazine Digital Display Digital Display Cinema Cinema Syndication Syndication Network TV Network TV Cable TV Cable TV While overall changes aren’t drastic………….
  • 24. More Granularity = Better ROI M25-54 W25-54 Digital (most to least $) Digital (most to least $) • Search Engines • Search Engines •Weather •Weather •Sports •E-mail •E-mail •Social •Social •Entertainment Network TV (most to least $) Network TV (most to least $) •Early News •Early Morning •Early Morning •Daytime •Sunday Morning •Early News •Late Night •Sunday Morning •Sunday Night Football •Late Night Magazines (most to least $) Magazines (most to least $) •Men •Women •Fishing Hunting •General Editorial •Motorcycling •Health •Automotive •Epicurean •Video Games
  • 25. What is `Basecamp’ vs ‘Summit’? Swap in your own impact data, utilize customized cuts from ME’s database and/or go more granular with media levers, targets etc Our syndicated offering with 100+ levers in 10+ verticals TMR: Software-Based Command Center • Flexible planning tool , integrating multiple data feeds to enable alignment & collaboration • Marketing, research & agency teams can simulate trade-offs • Scenario Planning different budget levels, pricing, etc.
  • 26. Telmar Matterhorn ROI (TMR) • A revolutionary new budget planning tool… • Based on billions of dollars in marketing spending analyzed independently. • Build plans on key metrics such as: – Awareness, Brand Image Shift, Increasing Demand/Purchase Intent, Sales Conversion, etc. • Currently serving the following verticals: – Auto, Pharma, Entertainment, CPG (Food, Beverage, Health/Beauty) Restaurant, Retail, etc. • Schedule a hands-on demo: • Steve Riddle (sriddle@telmar.com) • Jason Wertheimer (jason.wertheimer@marketingevolution.com) • Rex Briggs (rex@marketingevolution.com)
  • 27. MARY O’CONNELL Director, Global Digital Marketing and Public Relations Clorox Co.
  • 28. Measuring Return on Objectives Mary O’Connell Director l Digital Marketing l The Clorox Company July 28, 2011
  • 29. “80 percent of success is showing up.” -Woody Allen
  • 30. Turning up the volume For most of us, current measurement models don’t capture ever increasing digital executions in their current state Each driver has a coefficient that Base Price defines the direction and magnitude of its effect on TV volume. Distribution Radio Trend Print TPR PR Online Banner* Feature Only Brand Volume Display Only Streaming Video Feature&Display Search FSI Website Competition Facebook/Twitter Seasonality CRM-emails
  • 31. It’s a moving target •Mobile, mobile everywhere •Partial attention syndrome •Immediacy and high alert •Customization •Hyper-targeting
  • 32. The journey to real-time marketing Success: Digital analytics for real-time marketing and Digital Analytics for ROI measurement for growth and demand creation competitive advantage It’s as easy as: 1. Agree on objectives 2. Measure 3. Iterate Starting Point
  • 33. The goal: 360 measurement Most current models Digital Engagement Ecosystem Insights: Strategic feedback for real-time marketing Digital Strategies & Innovation & Digital Execution Tactics Business Strategies Execution Power of Digital Early indictors Semi-annually or annually Behavioral KPIs and Engagement Score Measurement Attitudinal Measurement Expand scope of Financial Financial ROI and Efficiencies Financial Measurement Measurement Measurement Concluding indictor Spend/Tactic Optimization Spend/Tactic Optimization and Forecasting and Forecasting Real-time marketing
  • 34. Creating an engagement model: It starts with a game plan ------------------------------------------------------------- All of digital is a learning lab. Treat it that way. Rather than just grabbing for the “If I do Y, latest shiny object, then Z will test your way in. happen…” You’ll accelerate your learning. “I wonder what would happen if….” Set hypotheses l Map to growth priorities l Prioritize l Pre-commit to next steps 1 2 3 3 3 4
  • 35. The case for clear KPIs: Return on Objectives Agree on universal KPIs for each tactic, typically 1 volume/transactional metrics such as friends, followers, sentiment, posts, ratings 2 Then set engagement metrics for the same tactics. If fans are your universal KPI for Facebook, then set interactions per fan as an engagement metric.
  • 36. The engagement model : A bridge to financials (Social media example) ------------------------------------------------------------------------------------------------------- ----- Financial Transactional Outcomes Metrics •Sales Friends •Profits Followers Sentiment Posts ----------------------------------------------------------------------------------- Ratings ---------- ---------- Financial Behavioral Attitudinal Transactional Outcomes Objectives Objectives Metrics •Sales •Behavioral metrics •Attitudinal metrics •Friends •Profits •Qualified leads •Perceptions •Followers •Engagement •Affinity •Sentiment indicators •Likelihood to •Posts recommend •Ratings Source: Corporate Executive Board
  • 37. Multitude of metrics Multitude of metrics Impressions Pageviews/Video Views Frequency Reach DataCore PR Bounce Rate Click-rate agencies YouTube Vindico Twitter Emails Sent Facebook Google Analytics DoubleClick WebTrends Database Clicks Dozens of Data Sources Visits Google AdWords ePrize Opt-Ins Yahoo! Search Responsys Open rate Individual Publishers MSN Ad Center Coupons Inc. Listening Active Users Codes Entered Conversion Rate
  • 39. Managing Your Marketing Dollars: Cost-Effective ways to Measure Your Spend and ROI Monique Duquette, Aprimo Copyright © 2011 by Teradata Corporation
  • 40. There is a Revolution in Marketing Copyright © 2011 by Teradata Corporation
  • 41. ROI, Channel Integration Plagues CMOs What is Most Broken in Marketing Today? 37% 27% 15% 10% 10% Too many Perceived Lack of Channel Correlating silos lack of value marketing consistency marketing from marketing channel in messaging to revenue integration CMO Survey/Argyle Executive Forum Copyright © 2011 by Teradata Corporation
  • 42. Current State – Manual. Disconnected. Inefficient. Budgeting & Tracking Campaign Proposals Workflow & Project Mgmt Copyright © 2011 by Teradata Corporation
  • 43. Multiple Solutions Inhibit Marketing Effectiveness • Low value realization • Data translation issues • Lack of usability and integration • Difficult to manage multiple licenses, interfaces, data • Lack of automated prospect engagement across channels Integrated marketing automation platform Multiple separate marketing applications Aberdeen Group Best in Class Website Results: 3 Leading TechnologiesThat Work Better as 1 Copyright © 2011 by Teradata Corporation
  • 44. Future State – Evaluate. Collaborate. Act Category/ Social Product Brand Incentives Media Interest Information Better Customer Experience More Efficient & Effective Marketing • Channel preference/convenience • Creates relationships • Ability to easily find Product/brand information • Drives loyalty & satisfaction • Saves on agency costs • Relevant & timely promotional incentives • Focus on creative, messaging, offers • Highly personalized communications delivered more frequently • Increases average purchase price • Store/product/brand recommendations Copyright © 2011 by Teradata Corporation
  • 45. Understanding ROI Copyright © 2011 by Teradata Corporation
  • 46. ROI - How do I get there? + Ingredients Tools/Appliances • Marketing Spend • Strategic Alignment • Sales/Revenue Data • Operational • Response/External Efficiency Information • Cross-brand Coordination Copyright © 2011 by Teradata Corporation
  • 47. Aprimo Integrated Marketing Management Copyright © 2011 by Teradata Corporation
  • 48. Opportunities — Channels, Collaboration, Performance  Increase marketing directly with consumers CHANNELS 1 Proliferation of New Engagement Channels  Expectations for relevancy from consumers  Empower field marketers to engage with relevant data COLLABORATION  Reduce inefficiencies working with agencies 2 Improve Agency and Internal Collaboration  Improve processes and interactions with internal teams  Manage the campaign execution processes PERFORMANCE  Gain visibility to marketing campaigns being Improving Marketing executed 3 Performance & Accountability  Adjust marketing spend based on performance  Streamline marketing spend Copyright © 2011 by Teradata Corporation
  • 49. THANK YOU! Q&A sponsored by: