Here is my presentation from OMS 2/5/09 on Web strategy, metrics and ROI measurement. Also check out the Google Trends data to see how you can have a barometer of how your campaign compares to the market.
2. My goals for today…
Provide some useful data points
Prescribe a Roadmap for Success
Explain how to measure ROI from online marketing
Present a case study
If that doesnʼt work…
...Iʼll try to impress you with graphics and animation
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3. Consumer Behavior is Changing…
Web accounts for >30% of media time (1)
We’re #2!
Online is becoming the medium of choice
#1 medium among under 30 (2)
15 million seniors online (growing fast)
50% of online time = “communitainment”
Community, Interaction, Entertainment
Enabled in part by Social Media
(1) Credit Suisse, 2006
(2) Forrester 2006
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4. Media Landscape is Changing…
In one word… fragmentation
1966: 5 mediums dominated
2006: 30+ mediums
TV no longer offers same reach
1977: 70% reach 3 commercials
2007: 70% reach 184 commercials
>50% of primetime TV is time-shifted
Print news circulation is declining
Radio losing share to Satellite + iPods
Direct Mail is losing effectiveness
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5. What This Means to Us (Marketers)
“Prime-Time” has been replaced by “My Time”
Consumers choose when and how they engage
Web impacts all businesses
While only 3% of retail sales are done online…
Web influences 25% of offline sales(1)
70% of searchers purchase offline
p.s. they spend more in-store
Customers have high expectations
They expect to find “it” quickly and
easily…regardless of device
Customers have more options
Competitors are only clicks away
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6. Threat or Opportunity?
While some are threatened…
…Others are excited!
Crisis = Danger + Opportunity(1)
Savvy marketers are embracing the
new paradigm
Ford: 15% of $1bn budget to digital
GM: 50% of $3bn budget to digital
JC Penney: 70% of BTS budget
(1) The two characters for Weiji or “Crisis” in
Mandarin are often said to represent “danger”
and “opportunity.” Chinese dispute the
translation.
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7. Online Media Mix Can Be Overwhelming
E-Mail
Video Search
House & 3rd
Display and Paid +
Party email
Display Social
Pre-roll Natural
Rich, Flash and Networks, Blogs,
Static Ads Photos, Videos
Content Portals
Search
Ad Networks
Social Networks
Affiliate
$$$ 7
8. What To Do in Troubling Times?
Weak economy shrinking budgets
Increases focus on ROI
Leads, Transactions, Revenue
Follow lead of savvy brands
Shift budgets to digital
Focus on proven methods
Test, Test, Test
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9. So Where Do You Start?
(everyone has a different opinion, here is mine)
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10. Start With a Foundation
Optimize Site Usability and Effectiveness
Good User Experience + Effective Branding + CTAs = $$$
Establish metrics and system for measuring results
Focus on metrics that indicate intent to purchase
Search Engine Marketing
Engage customers who are “in the market”
Email marketing
Cultivate long term relationships
Site Usability
Metrics
Search
Email
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11. Whatʼs Next?
???
UGC
Mobile
Social Media
Display
Video
Site Usability
Metrics
Search
Email
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12. ..And if youʼre interested in Social Media
What the #*&@%# ???
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13. How to Play in Social Media
Participate in online discussions
Start posting on other sites
Be transparent: http://flyertalk.com/forum/showthread.php?t=786742
Get on LinkedIn, Facebook and Twitter
Low-cost way to reach and engage audiences
Make sure you have resources to market it!
Start a dialogue on your site
Invite users to participate in discussion
Market like crazy!
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15. Measure that which Indicates Value
Basic Metrics
Engagement metrics
Impressions
% Returning
Clicks / Visits
Frequency of visit
Page views
Pages viewed per visit
Time on site
Registrations
Transactions
Web 2.0 Metrics
Posts / Participation
Viewing Videos or Photos
Uploading content
Sharing / Posting
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16. Look Beyond the Last Click
Decision cycles are not linear
Users often make multiple before taking action
Engagement entails multiple touch points
Credit is usually attributed to the last click
Design flaw of most analytics platforms
Generally rewards Search, punishes Display and Email
Case Studies:
• FedEx Kinko’s: 20% of “search” leads had display cookies
• After adjusting, reduced display CPL by 50%
• Zeno: average purchase took place after 3rd visit
• Search was used 50% of 2nd visits, 40% of 3rd visits
Takeaway: understand which touch points drive action
(aka “Engagement Mapping”)
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17. Take a Holistic View
Some results are directly traceable… but many are not!
Due to cookie deletion and multiple machines
Case Studies:
• B2C retailer: 30% increase in home page traffic when display campaign
launched (beyond click-throughs)
• Bank: 4 “home page” actions for every traceable 1 action
Create a baseline
for comparison
Agree upfront how to
attribute credit
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18. A New Way To Index Performance
12 Month Google Search Index: WIDGET
3
Understand the Context of your
2.5
environment – use Google Trends
as a proxy for Demand.
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1.5
1
1.40
0.5
1.20
0
1.00
0.80
0.60
Show your RELATIVE
performance by indexing your quot;Google Trends ‐ 30 Day Indexquot;
0.40
results vs. Google Trends
quot;Online Leads ‐ 30 Day Indexquot;
0.20
‐
Jan 3 2009 Jan 10 2009 Jan 17 2009 Jan 24 2009 Jan 31 2009
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19. Communicate in a Way that Works
Communicate
Daily and Cumulative Leads
Results, not data
Executives LOVE
Dashboards! Cost per Lead by Outlet
Campaign Summary # Leads by Outlet
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20. How Do We Value Engagement?
Determine how Actions Intent
Action
Value
Visits
Indicates awareness
Registrations
Indicates consideration
Store lookups
Indicates preference
Coupon Downloads
Indicates action
Tell A Friend
Indicates loyalty
Forecast how Intent $$$
Some % of those who show Intent will buy
Do the math and apply across each set of actions
Use common sense to normalize results
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21. A Quick Example
Campaign assumptions:
Investment
$10,000
Impressions ($5 cpm)
2,000,000
Visits (direct and indirect)
10,000
Registration (lead) rate
3%
Lead Close rate
10%
Revenue per customer
$2,500
Expected Results:
Another way to view it:
• 300 leads
• Value per visit: $7.50
• 30 customers
• Cost per visit: $1.00
• $75k in revenue
• $7.50 ROAS*
*Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits
that did not register is of equal if not greater value.
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22. ROI Methodology
Project Value Normalize Divide by
Define Assign Close
for each (average) Cost or
Metrics
Rates
action
Values
investment
Such as:
Forecast:
Project:
Strengthen by:
Net it out:
• Visits
• What % will • Revenue, Margin • Eliminate • Return on
purchase?
or outliers
Spend
NPV
• Registrants
• Based on • Separate by • Return on
actions
audience
Investment
• Based on action
• Friend invites
• Customers
• Prospects
• Based on • Based on • Based on
• Coupon D/Ls
audiences
audience
audience
• Customers
• Customers
• Customers
• Store lookups
• Prospects
• Prospects
• Prospects
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23. Case Study
Client: Stage Stores
Audiences: female teens
in underserved markets
Blog
Objective: drive in-store
purchases
Strategy: back-to-school
social networking site
Comments
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24. Now What?
Once you have a Plan and a ROI model
Document the assumptions
Show the expected economic impact
Show your execs / client how it works
Communicate your successes
Internally
Externally
Continue to think about “whatʼs next”
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25. In Closing…
We all know the value is there…
…We need to focus on what works
…we need to be able to show it
Success requires…
Methodical approach
Analytical rigor
Creativity
Common sense
Today Iʼve showed you one approach
Many others exist – feel free to share!
Letʼs stay in touch!
Check out our blog http://blog.spurinteractive.com
Join me on Facebook and LinkedIn
Email me steve@spurinteractive.com
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26. About the Presenter
Steve Latham is the founder and CEO of Spur Interactive, a
strategic interactive marketing agency. In this role, Steve
has planned and managed successful campaigns for
leading brands, including ConocoPhillips, FedEx Kinko's,
Southwest Airlines, The Scooter Store, and Medical Hair
Restoration.
Steve is an accomplished industry lecturer and an active
member of the business and non-profit community. Steveʼs
articles on interactive strategies have been published by
MediaPost and iMedia Connection and he has been quoted
in PR Week, Fortune and CNN.com.
Steve received an MBA from Harvard Business School and a
BBA from the University of Oklahoma. You can find Steve
on Facebook or email him at steve@spurinteractive.com .
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