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Maximizing demand using the optimal online medie mix final version 2

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Maximizing demand using the optimal online medie mix final version 2

  1. 1. 1 Maximizing demand by using the online media mix Ulrik Zielfelt - TradeDoubler
  2. 2. 2 ”En samlad uppfattning bland de digitala mediechefer SvD Näringsliv har pratat med är att mediesajter har halkat efter i produktutvecklingen och därmed misslyckats med att förklara nätets förträfflighet som kommersiellt medium för annonsörerna, vilket blir extra synligt i lågkonjunkturen” SVD 18 april 2009
  3. 3. Setting the frame work 3 In the online environment everything is measurable… … thus, we tend to overstate channels that generate direct results & understate channels that does not!
  4. 4. Last click First click Other interactions We tend to base our investment decisions on the last click & neglect other interaction …but the last click is only the top of the ice berg
  5. 5. 5 Awareness Interest Consideration Purchase Awareness Interest Consideration Purchase The traditional way of evaluating Online media channels Comparison of Methodologies Direct attribution =Unit sold
  6. 6. 6 Awareness Interest Consideration Purchase Awareness Interest Consideration Purchase The holistic way of evaluating Online media channels Comparison of Methodologies Media mix modelling
  7. 7. 7 • Research suggests display measured by itself = understated (conversion 1x vs. 4x). An example to set the stage! • “paid search is the ultimate demand capture mechanism”, but it can't create awareness for the products and the services” Robert Murray, CEO at iProspect, Boston 22%
  8. 8. Example Affiliate Program Source: Tradedoubler study of 580 user journeys in the James Villas affiliate program 2008 30%
  9. 9. Example Affiliate Program Source: Tradedoubler study of 580 user journeys in the James Villas affiliate program 2008
  10. 10. How do I assemble a strategy that maximizes demand & results?
  11. 11. 11 SEK 2009 2010 Total Programme Revenue 9,669,231 25,886,538 Spend 1,338,000 2,370,000 Cost of Sales 14% 9% Rev ex channel costs 8,331,231 23,516,538 Number of sales 8,858 19,658 Cost per sale 151 121 Affiliate Transaction Revenue 1,920,000 7,200,000 Spend 288,000 720,000 Cost of sales 15% 10% Rev ex channel costs 1,632,000 6,480,000 Mix of spend 22% 30% Campaign Revenue 549,231 686,538 Spend 450,000 450,000 Cost of Sales 82% 66% Rev ex channel costs 99,231 236,538 Mix of spend 34% 19% Search Spend Revenue 7,200,000 18,000,000 Spend 600,000 1,200,000 Cost of Sales 8% 7% Rev ex channel costs 6,600,000 16,800,000 Mix of spend 45% 51% Mediamix modelling – the true ROI
  12. 12. User Journey Analysis - Understand the vehicle contribution
  13. 13. 13 Key take aways • Analyze your data properly •Take the full picture into consideration when investing in different vehicles! •Learn to understand the contribution of different vehicles & levers in the purchase desicion funnel

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