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R.O.I.   	
  


Sergio Barrientos
SVP, MANAGING CREATIVE DIRECTOR
sergio.barrientos@havasmedia.com

@xensei
Agenda



         1.  Theory
         2.  Reality
         3.  Connecting the dots
         4.  True value
         5.  Outcome
1. Theory




   R.O.I. is…
   …a business metric, not a media metric.
   …100% media agnostic
 	
  How	
  to	
  measure	
  ROI?	
  
1. Theory


            Gathering	
  a	
  lot	
  of	
  data…	
  
1. Theory

       …but	
  focusing	
  on	
  YOUR	
  marke>ng	
  goals	
  
1. Theory


There
is a
simple
formula




               (GAIN	
  FROM	
  INVESTMENT	
  -­‐	
  COST	
  OF	
  INVESTMENT)	
  
ROI	
  =	
  
                                 COST	
  OF	
  INVESTMENT	
  
1. Theory
And	
  there	
  are	
  funnels	
  to	
  illustrate	
  the	
  theore&cal	
  
consumer	
  journey	
  towards	
  a	
  conversion	
  




 Funnels	
  are	
  
 GREAT,	
  telling	
  
 the	
  story…	
  
1. Theory

…but you need to ACT ON IT!




Digital channels offer a constant opportunity for improvement
2. Reality


 Increased fragmentation of the media space and constant
 innovation in the digital media space challenge marketers to
 combine communication vehicles to reach their goals.	
  
2. Reality
       A	
  day	
  of	
  media	
  consump>on	
  can	
  get	
  really	
  complex…	
  




UK	
  Media	
  Consump?on	
  Habits	
  SOURCE:	
  Ofcom’s	
  seventh	
  annual	
  Communica>ons	
  Market	
  report	
  
3. Connecting the dots

            Ad serving, social and web analytics data
            enable Marketers to have access to more
       extended and precise insights on consumer behavior.
3. Connecting the dots

Allowing to map touch points and funnels in order to follow
consumer behaviors and not just channels.
3. Connecting the dots


          Understanding what’s working and what’s not


                                 ACCOUNTABILITY




                 Attribution Modeling




              In order to align business objectives by
               understanding media spend efficiency
3. Connecting the dots

Marketers need the
flexibility to experiment
with different scenarios
and understand how a
change of inputs
influences different
consumer segments.

(i.e. running TV and
paid search together
increases web base
sales for product A).
3. Connecting the dots

 Different combinations of messaging vehicles are needed to
 comply with consumer behavior and achieve marketing
 goals, leveraging synergies between channels.
4. True value

 Answering the right questions:

 What is the true value of each online marketing channel
 when comparing to marketing goals?

 Where in the customer journey is each marketing channel
 most likely to perform?

 What are the most common paths to conversion?

 Leverage weighted algorithms and attribution models
 to target and re-target the “next-best” opportunity.
5. Outcome


 ROI tracks business performance

 Funnels guide optimization

 Attribution modeling helps to understand media
 spend efficiency

 So, ROI provides an opportunity to manage
 campaigns from a business perspective.
Thank you

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Dude, where's my ROI?

  • 1. R.O.I.   Sergio Barrientos SVP, MANAGING CREATIVE DIRECTOR sergio.barrientos@havasmedia.com @xensei
  • 2. Agenda 1.  Theory 2.  Reality 3.  Connecting the dots 4.  True value 5.  Outcome
  • 3. 1. Theory R.O.I. is… …a business metric, not a media metric. …100% media agnostic
  • 4.    How  to  measure  ROI?  
  • 5. 1. Theory Gathering  a  lot  of  data…  
  • 6. 1. Theory …but  focusing  on  YOUR  marke>ng  goals  
  • 7. 1. Theory There is a simple formula (GAIN  FROM  INVESTMENT  -­‐  COST  OF  INVESTMENT)   ROI  =   COST  OF  INVESTMENT  
  • 8. 1. Theory And  there  are  funnels  to  illustrate  the  theore&cal   consumer  journey  towards  a  conversion   Funnels  are   GREAT,  telling   the  story…  
  • 9. 1. Theory …but you need to ACT ON IT! Digital channels offer a constant opportunity for improvement
  • 10. 2. Reality Increased fragmentation of the media space and constant innovation in the digital media space challenge marketers to combine communication vehicles to reach their goals.  
  • 11. 2. Reality A  day  of  media  consump>on  can  get  really  complex…   UK  Media  Consump?on  Habits  SOURCE:  Ofcom’s  seventh  annual  Communica>ons  Market  report  
  • 12. 3. Connecting the dots Ad serving, social and web analytics data enable Marketers to have access to more extended and precise insights on consumer behavior.
  • 13. 3. Connecting the dots Allowing to map touch points and funnels in order to follow consumer behaviors and not just channels.
  • 14. 3. Connecting the dots Understanding what’s working and what’s not ACCOUNTABILITY Attribution Modeling In order to align business objectives by understanding media spend efficiency
  • 15. 3. Connecting the dots Marketers need the flexibility to experiment with different scenarios and understand how a change of inputs influences different consumer segments. (i.e. running TV and paid search together increases web base sales for product A).
  • 16. 3. Connecting the dots Different combinations of messaging vehicles are needed to comply with consumer behavior and achieve marketing goals, leveraging synergies between channels.
  • 17. 4. True value Answering the right questions: What is the true value of each online marketing channel when comparing to marketing goals? Where in the customer journey is each marketing channel most likely to perform? What are the most common paths to conversion? Leverage weighted algorithms and attribution models to target and re-target the “next-best” opportunity.
  • 18. 5. Outcome ROI tracks business performance Funnels guide optimization Attribution modeling helps to understand media spend efficiency So, ROI provides an opportunity to manage campaigns from a business perspective.