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Online Media Measurement!
What (Search) Marketers Need to Know!
August 2011!




                                          Steve Latham, ceo
                                        Encore Media Metrics
                                               @stevelatham
My Goals for Today

    Provide a more global perspective on media measurement 
    Explain Attribution 

    Show why you should embrace it




                   Attribution 101 © Encore Media Metrics 2011
   2
Media Measurement Today

Digital is hard to characterize
                                              Awareness 

   Strategic + Tactical 
                                            (Display, Email, Social, Mobile,
                                                                              Fat Tail Search)
   Branding + Performance

                                                                            Consideration

Digital touches customers throughout!                                   (Display, Mid-Tail Search,
                                                                                  Social)
the funnel
                                                                              Preference

Digital is hard to measure 
                                                (Long-Tail Search,
                                                                              Social Email)
     Traditional metrics no longer suffice 

                                                                                 Action

   …Yet, each buy must stand on its own 

                                                                                  (Social,
                                                                                  Search,
                                                                                   Email)




                       Attribution 101 © Encore Media Metrics 2011
                                      3
Measurement Challenges
                    “If all you have is a hammer, everything looks like a nail.”
                                                                                -Abraham Maslow


We learned to measure performance via:
      Clicks 
      Click-through-rates (CTRs) 
      Direct conversions 

We now know these aren’t sufficient
      Keyword assists are important (Search)
      Display Ads can be effective without clicks
      Social contributes throughout the process

Clicks have very little correlation to !
performance of Display Ads
      8% of users contribute 80% of Display clicks
      Only 20% of post-imp conversions follow clicks

                                 Attribution 101 © Encore Media Metrics 2011
                      4
Think About It This Way…



                                                What if they only gave the
                                                last swimmer the medal? 

                                                That ain’t right!




               Attribution 101 © Encore Media Metrics 2011
                  5
Think About It This Way…



                                                What if they only gave the
                                                last swimmer the medal? 

                                                That ain’t right!




               Attribution 101 © Encore Media Metrics 2011
                  6
PhD Targeting… 1st Grade Metrics
The paradox in online advertising, as it relates to data..
     Most are very sophisticated in using data to find and engage audiences
     Very few are using data effectively to measure impact

It’s like hiring a PhD statistician to develop new algorithms… 
and having a1st grader assess their work




                           Attribution 101 © Encore Media Metrics 2011
        7
Why Times are Changing
The Five Forces Driving Better Analytics
Read Mediapost article http://bitly.com/iyOLpT   
                                                           Shift from
                                                          Traditional to
                                                          Digital Media




                     Growth in                                                              Increasing 

                      Display                           Better Solutions
                    Focus on 

                    Advertising
                                                           Accountability




                                                        Evolution of Web
                                                          Architecture


                                            Attribution 101 © Encore Media Metrics 2011
                     8
Attribution Methodologies

There are two primary approaches to Attribution:
1. Algorithmic modeling: correlations, regressions, etc.
     Performed in batches, monthly, quarterly or annually

2. Operational: analyzing all touch points that drive actions
     Low-funnel (click-based) and high-funnel (impressions + clicks)




                         Attribution 101 © Encore Media Metrics 2011
    9
4 Steps to Operational Attribution
1.  Aggregate and categorize                           3.  Define an Attribution model 
    campaign data
                                                 Look-back window
       Display ads 
                                              Weighing clicks vs. impressions
       Search (paid and natural)
       Email
       Affiliate, CSE


2.  Combine impression and click
    data to see engagement paths
 4.  Produce reports
       Synch ad server log files with                              Which metrics?
        visitor records
                                           How granular?
       Create record of all interactions
        that precede visit or conversion




                              Attribution 101 © Encore Media Metrics 2011
                        10
Channel Attribution




      The impact can be dramatic (last-click vs. attributable) 
      •    Display: often see 30-60% drop in CPA
      •    SEM: often see 10-15% drop in CPA 

                         Attribution 101 © Encore Media Metrics 2011
   11
Keyword Performance
           How Most View Keyword Reports
                                       




              Attribution 101 © Encore Media Metrics 2011
   12
Keyword Attribution
         How We Should View Keyword Performance




                 Attribution 101 © Encore Media Metrics 2011
   13
Additional Considerations

Defining the right attribution model 
     What is the value of an impression vs. a click?
     How will that vary based on the type of media?
     How far back should you look?




                        Attribution 101 © Encore Media Metrics 2011
   14
What Do you Do with that Information?

 Hint: use predictive analysis to quantify opportunity of optimizing spend




                         Attribution 101 © Encore Media Metrics 2011
         15
Case Study

  Traditional Retailer
       Integrated campaign (15mm imps and 150k visits)
         Display saw 98% lift over last-click reporting (46% drop in CPA)
         PPC saw 14% lift over last-click report (16% drop in CPA)




                             Attribution 101 © Encore Media Metrics 2011
     16
Takeaways
1. It’s time to re-assess how we measure media 
    Take a holistic (and realistic) view
    Position yourself as a thought leader, not a laggard


2. Don’t Fear Attribution. Embrace it! 
    By channel

    By vendor
    By keyword


3. Choose approach that fits your strategy
    Lower-funnel (SEM, SEO, Facebook ads, email)

    Full-funnel (Display, Rich media, video, etc.)


For more on this topic:
      Read “Attribution 101” http://bit.ly/p0lQrv 
      Read “Choosing an Attribution Vendor” by Econsultancy http://bitly.com/kLDkvz 
      Watch video interview on Attribution (via creatorbase) http://bit.ly/nyakk6



                                Attribution 101 © Encore Media Metrics 2011
             17
About the Presenter
Steve is the founder and CEO of Encore Media Metrics (http://encoremetrics.com),
which helps marketers optimize spend through better analytics. Encore’s on-
demand measurement and reporting solution allows clients to achieve deeper
insights into campaign performance while lowering the cost and complexity of
online measurement. 
Prior to launching Encore, Steve founded, grew and sold Spur Interactive, a digital
marketing agency that specialized in strategic planning and execution of
integrated media campaigns. In this role, Steve planned and executed successful
campaigns for leading brands, including FedEx Office, Continental Airlines,
ConocoPhillips and The Scooter Store.
Steve is an accomplished industry lecturer and thought leader. Steve speaks
frequently at industry events including OMMA, Search Engine Strategies, Online
Marketing Summit, eMetrics Summit, Integrated Marketing Summit and others.
Steve’s articles have been published by MediaPost, Online Media Daily, iMedia
Connection, Marketing News and Bizjournals.com. Steve has been quoted in B2B
Magazine, PR Week, Fortune and CNN.com.
Steve received an MBA from Harvard Business School and a BBA from the
University of Oklahoma. You can read Steve’s blog at http://Attribution101.com. 




      http://facebook.com/slatham        http://twitter.com/stevelatham               
 www.linkedin.com/in/stevelatham

                                       Attribution 101 © Encore Media Metrics 2011
                                        18
Contact Information




     Encore Media Metrics 
                                 Info@EncoreMetrics.com
     New York | Texas
     646.820.1006
                                          @SteveLatham
     http://EncoreMetrics.com
                              @EncoreMetrics

                                                            http://Attribution101.com 




                       Attribution 101 © Encore Media Metrics 2011
                       19

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Media Measurement for (Search) Marketers by Encore Media Metrics

  • 1. Online Media Measurement! What (Search) Marketers Need to Know! August 2011! Steve Latham, ceo Encore Media Metrics @stevelatham
  • 2. My Goals for Today   Provide a more global perspective on media measurement   Explain Attribution   Show why you should embrace it Attribution 101 © Encore Media Metrics 2011 2
  • 3. Media Measurement Today Digital is hard to characterize Awareness 
   Strategic + Tactical (Display, Email, Social, Mobile, Fat Tail Search)   Branding + Performance Consideration
 Digital touches customers throughout! (Display, Mid-Tail Search, Social) the funnel Preference
 Digital is hard to measure (Long-Tail Search, Social Email)   Traditional metrics no longer suffice Action
 …Yet, each buy must stand on its own (Social, Search, Email) Attribution 101 © Encore Media Metrics 2011 3
  • 4. Measurement Challenges “If all you have is a hammer, everything looks like a nail.” -Abraham Maslow We learned to measure performance via:   Clicks   Click-through-rates (CTRs)   Direct conversions We now know these aren’t sufficient   Keyword assists are important (Search)   Display Ads can be effective without clicks   Social contributes throughout the process Clicks have very little correlation to ! performance of Display Ads   8% of users contribute 80% of Display clicks   Only 20% of post-imp conversions follow clicks Attribution 101 © Encore Media Metrics 2011 4
  • 5. Think About It This Way… What if they only gave the last swimmer the medal? That ain’t right! Attribution 101 © Encore Media Metrics 2011 5
  • 6. Think About It This Way… What if they only gave the last swimmer the medal? That ain’t right! Attribution 101 © Encore Media Metrics 2011 6
  • 7. PhD Targeting… 1st Grade Metrics The paradox in online advertising, as it relates to data..   Most are very sophisticated in using data to find and engage audiences   Very few are using data effectively to measure impact It’s like hiring a PhD statistician to develop new algorithms… and having a1st grader assess their work Attribution 101 © Encore Media Metrics 2011 7
  • 8. Why Times are Changing The Five Forces Driving Better Analytics Read Mediapost article http://bitly.com/iyOLpT Shift from Traditional to Digital Media Growth in Increasing 
 Display Better Solutions Focus on 
 Advertising Accountability Evolution of Web Architecture Attribution 101 © Encore Media Metrics 2011 8
  • 9. Attribution Methodologies There are two primary approaches to Attribution: 1. Algorithmic modeling: correlations, regressions, etc.   Performed in batches, monthly, quarterly or annually 2. Operational: analyzing all touch points that drive actions   Low-funnel (click-based) and high-funnel (impressions + clicks) Attribution 101 © Encore Media Metrics 2011 9
  • 10. 4 Steps to Operational Attribution 1.  Aggregate and categorize 3.  Define an Attribution model campaign data   Look-back window   Display ads   Weighing clicks vs. impressions   Search (paid and natural)   Email   Affiliate, CSE 2.  Combine impression and click data to see engagement paths 4.  Produce reports   Synch ad server log files with   Which metrics? visitor records   How granular?   Create record of all interactions that precede visit or conversion Attribution 101 © Encore Media Metrics 2011 10
  • 11. Channel Attribution The impact can be dramatic (last-click vs. attributable) •  Display: often see 30-60% drop in CPA •  SEM: often see 10-15% drop in CPA Attribution 101 © Encore Media Metrics 2011 11
  • 12. Keyword Performance How Most View Keyword Reports Attribution 101 © Encore Media Metrics 2011 12
  • 13. Keyword Attribution How We Should View Keyword Performance Attribution 101 © Encore Media Metrics 2011 13
  • 14. Additional Considerations Defining the right attribution model   What is the value of an impression vs. a click?   How will that vary based on the type of media?   How far back should you look? Attribution 101 © Encore Media Metrics 2011 14
  • 15. What Do you Do with that Information? Hint: use predictive analysis to quantify opportunity of optimizing spend Attribution 101 © Encore Media Metrics 2011 15
  • 16. Case Study Traditional Retailer   Integrated campaign (15mm imps and 150k visits)   Display saw 98% lift over last-click reporting (46% drop in CPA)   PPC saw 14% lift over last-click report (16% drop in CPA) Attribution 101 © Encore Media Metrics 2011 16
  • 17. Takeaways 1. It’s time to re-assess how we measure media   Take a holistic (and realistic) view   Position yourself as a thought leader, not a laggard 2. Don’t Fear Attribution. Embrace it!   By channel   By vendor   By keyword 3. Choose approach that fits your strategy   Lower-funnel (SEM, SEO, Facebook ads, email)   Full-funnel (Display, Rich media, video, etc.) For more on this topic:   Read “Attribution 101” http://bit.ly/p0lQrv   Read “Choosing an Attribution Vendor” by Econsultancy http://bitly.com/kLDkvz   Watch video interview on Attribution (via creatorbase) http://bit.ly/nyakk6 Attribution 101 © Encore Media Metrics 2011 17
  • 18. About the Presenter Steve is the founder and CEO of Encore Media Metrics (http://encoremetrics.com), which helps marketers optimize spend through better analytics. Encore’s on- demand measurement and reporting solution allows clients to achieve deeper insights into campaign performance while lowering the cost and complexity of online measurement. Prior to launching Encore, Steve founded, grew and sold Spur Interactive, a digital marketing agency that specialized in strategic planning and execution of integrated media campaigns. In this role, Steve planned and executed successful campaigns for leading brands, including FedEx Office, Continental Airlines, ConocoPhillips and The Scooter Store. Steve is an accomplished industry lecturer and thought leader. Steve speaks frequently at industry events including OMMA, Search Engine Strategies, Online Marketing Summit, eMetrics Summit, Integrated Marketing Summit and others. Steve’s articles have been published by MediaPost, Online Media Daily, iMedia Connection, Marketing News and Bizjournals.com. Steve has been quoted in B2B Magazine, PR Week, Fortune and CNN.com. Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma. You can read Steve’s blog at http://Attribution101.com. http://facebook.com/slatham http://twitter.com/stevelatham www.linkedin.com/in/stevelatham Attribution 101 © Encore Media Metrics 2011 18
  • 19. Contact Information Encore Media Metrics Info@EncoreMetrics.com New York | Texas 646.820.1006 @SteveLatham http://EncoreMetrics.com @EncoreMetrics http://Attribution101.com Attribution 101 © Encore Media Metrics 2011 19