September 12, 2011 Geoffrey Ramsey TWITTER: @geofframsey #digitalimpact #imediasummit
September 12, 2011
Geoffrey Ramsey
TWITTER: @geofframsey
#digitalimpact#imediasummit
Can you identify with these two fundamental problems?:
• Lack of adequate metrics and measurement systems to drive marketing performance
• Frustration with how to effectively engage online consumers, who have short attention spans, face abundant choices and are increasingly resistant to advertising messages
Secret #1 is all about the need for Performance Measurement…
Marketers view of performance measurement“The challenge is – ‘Prove to me that marketing works’… that the investments are paying back in both short- and long-term deliverables.”
--Bob Liodice, CEO, ANA
The online display ad landscape today...
Integration of many data sources
Exchanges
Mid/Tail Publishers
Networks
+ real time placement
+ Complex analytics for testing and
optimization
Demographic
Psychographic
Geographic
Behavioral
Client
Premium Publishers
“What’s at stake here?”
$1 TrillionTotal Marketing(VSS, Myers, PwC, etc)
$368 Billion“Advertising & Marketing”
(Outsell)
$157 BillionAdvertising(eMarketer)
$31 BDigital
(eMarketer)
Internet as “Hub”
Consumer time and engagement Huge purchase influence Now 20% of total media spend
and surpassing all print in 2012 Media measurement “hook” Power of One media to rule them all!
20.2%
Deutsche Bank……. 18.0%Barclays................... 16.5%MAGNAGLOBAL….. 15.6%PwC…………………. 15.5%Morgan Stanley……. 14.8%Citi…………….......... 14.6%Winterberry Group…. 14.0%IDC…………………… 13.8%WARC…..….. ………. 12.7%ZenithOptimedia……. 12.6%GroupM……………… 12.0%
“Where’s all this digital money coming from?”
+1.4%65%
eMARKETER FLASH Poll:
“What % of YOUR digital ad spend comes from traditional?”
Secret #2 gets at the problem of
engagement with digital consumers
4.4%
43%of consumers say they ignoreor disregard banner ads more
than any other type of ad.
Source: AdweekMedia/Harris Poll,October, 2010
Chaos Theory
BreakoutSessions
Today’s Panels:• Digital re-aggregration of media dust
• Digital is making the media universe fly apart at an accelerated rate
Rishad
Peter
John
Bob
The classic interruption/disruption model of advertising is waning…
We interrupt
this program
to sell you stuff
We interrupt this
programming to sell
you stuff!
“Advertising is no longer about blasting the most messages to the most people. Instead, it’s about
this: Ideas that spread, win.”
--Seth Godin
“We need to create experiences, not just
sponsor content.”
--Frank Cooper, CMO, Pepsi
“Marketers are focusing on creating Magnetic Content – so entertaining,
relevant, informative or useful – it demands the consumer’s
time and attention.”
“It’s more about ATTRACTION, rather than DISTRACTION.”
The Magnetic Content approach turns targeting on its head.
20% offMens’ Jeans
2-for-1Sale!
What about B2B?
Does content as marketing work in the B2B world?
Case Study Highlight:
“Name the best example of Magnetic Content that you’ve personally experienced with a
brand.”
Five Criteria for Magnetic Content
1. Is the content Unique?
2. Is it Useful?
3. Is it Well Executed?
4. Is it Fun?
5. Does it make good use of the channel in which it appears?
Ask yourself, “Would I personally want to receive this content, and share it with others?”
Is it Unique?Well Executed?Fun?
Is it Useful?Is it working?!
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Time on Page Page CTR Circular Paths Exit RateTime on Page Page CTR Circular Paths Exit Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Time on Page Page CTR Circular Paths Exit Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comments Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Time on Page Page CTR Circular Paths Exit Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Time on Page Page CTR Circular Paths Exit Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Time on Page Page CTR Circular Paths Exit Rate
Click-Thru Rate
Cost Per Lead
Cost per Click
View-Thrus Reach
Interaction Rate Leads
Frequency
Impressions
Share of Voice
Downloads Conversion Rate Comment Forward Return Visits
Bounce Rate Time on Site Page Views Video Views Registration Rate
Only 7 Key Metrics to MasterOnly 7 Key Metrics to Master
Time on Page Page CTR Circular Paths Exit Rate
Too many metrics… the big challenge is deciding the right metrics
Start with the measurement framework
Perceptual & Behavioral Outcomes
FinancialOutcomes
MarketingInvestment
Strategic Metrics
Exposure Metrics
LINKAGE
LINKAGE
LINKAGE
20
Low level measures related to the performance of individual channels
Higher level metrics related to longer-term changes in brand
health
Highest level metrics used to quantify business performance
e.g., Qualified Reach
e.g., Brand Perception Lift,Engagement Score
e.g., ROI
Engagement Score?
Linkages are crucial,not just a report card
Engagement Score reflects a hierarchy which is based on the brand’s objectives
21
Create
Share
Request
Respond
Interact
View
Recommend , referrals
Profiles, Upload pictures
Send to friend, Social media
Signup, Email, Coupon, WTB
Rate, Vote, Add comments
Play videos, Demos
Content, Pictures
HIGHER VALUE
LOWER VALUE
EngagementValue Continuum
Advocate
Assign point values to each gradated level of Engagement
1 Point
1 Point1 Point 1 Point 1 Point
2 Points1 Point
2 Points
3 Points
3 Points
2 Points
3 Points 1 Point2 Points
2 Points 1 Point1 Point
2 Points
Illustrative example for mappingEngagement Scores
Applying Magnetic Content and Performance Measurement to the Six Digital Channels
Social
Display
Digital Channel
#1:
SocialMedia
Social Media: Connections that Count
“Can we achieve scale?”
89% are onemail
232 million Americans are online today (74%)
Source: eMarketer, 2011TWITTER:@geofframsey
76% are buying online
68% are watching online video
64% are social networking
11%Twittering
US social media spending will grow 55% this year to $3 billion
11%of total US online ad spend
7% of total online ad dollars
18% of display ad dollars
Overtaking Yahoo! this year at only 13% share
Four best practices for Magnetizing customers through social media content
1. Leverage the secret ingredient: Trust
2. Listening leads to learning
3. Add Value to the conversation (ala Magnetic Content!)
4. Focus on your Core Enthusiasts
e.g., letting your brand advocates speak on your behalf; allowing for customer ratings and reviews
A. Learn how consumers talk about your brand, product or service category• Notice what words and language they use• Learn about their interests and intentions
B. Discover real or perceived problems with your product or customer service
#2. Listening leads to Learning
C.L.O.
A personal story about listening…
New strategy…
ESCALATE
Censored
Adobe, I hope you’re listening, because I’ve got a problem…
#3. Add value to the conversation…
UniqueUsefulWell executedFunGreat use of channel
Sometimes, the best Magnetic Content comes from your best
customers.
Which is why you should:#4. Focus on Your Fans.
#4. Focus on Your Brand Fans:
Prospects
Customers
COREFANS
Find them via Social Media
CORE
Nurture them carefully
Empower them to share
Consumers Who “Like” or Follow a Brand:
• Are more likely to buy 1, 3, 4…………………. 51%
• Tend to spend more money 2……………….. $71
• Are more likely to recommend 1, 3, 4……..…. 60%
• Are more likely to be loyal to the brand 3 …. 34%Sources: 1) Chadwick Martin Bailey, Mar, 2010; 2) Syncapse, 2010;3) ROI Research, June, 2011; 4) DDB Worldwide and OpionWayResearch, Oct, 2010
SHARPIE: Finding Fans. Empowering Them. Nurturing Them.
Viewed 62 million times on YouTube
% of marketers saying their ability to measure ROI for media channel is “good”
Social media 19%Social media 19%
Paid search 54%Paid search 54%
N = 567 global marketers, 2010
E-mail marketing (acq) 53%E-mail marketing (acq) 53%
Online display 37%Online display 37%
TV 21%TV 21%
Newsp/Mags 20%Newsp/Mags 20%
Applying our framework to social media
Perceptual & Behavioral Outcomes
FinancialOutcomes
MarketingInvestment
Strategic Metrics
Exposure Metrics
LINKAGE
LINKAGE
LINKAGE
37
This is not the end game!
Conduct post-visit surveys with an exposed vs. control
group to determine lift in brand perceptions
To get to “ROI,” you need visibility into actual buying activity:
• Self-stated purchases;• Matching to a transaction database;• Capturing online purchases.
Digital Channel
#2 Display:
The Branding that Creates the Intent
• Influx of SMB
display buyers due
to self-serve
buying platforms
• RTB and
exchanges creating
improvements in
display targeting,
buying efficiencies
and metrics
• Facebook creating
new display ad
opportunities
• Hockey stick
growth in video
24.5%
MAGNAGLOBAL... 24%Barclays Capital.... 21%Morgan Stanley..... 18%Piper Jaffray…….. 18%Citi……………....... 17%ZenithOptimedia.... 15%DigitalRoute………. 14%Deutsche Bank…… 13%J.P. Morgan.………. 13%Caris & Co.………... 13%Credit Suisse…….. 8%
% Planning to Increase Display Ad Spending in 2011
• Advertisers*………… 49%• Agencies*……………. 32%• B2B Marketers**……. 13%
*Econsultancy & SAS, 2011;**Forrester Research, 2011
Video Ad Spending as a %of Total Display AdvertisingVideo Ad Spending as a %
of Total Display Advertising
17.5%17.5% 32.3%32.3%
…There’s now plenty of data showing how online display ads drive consumer activity
Do a Search
Visit Website
Buy Online
Buy Offline
O
ver time
“You don’t build brands by optimizing for clicks!”
--John Battelle
• ART – Focusing on better creative (Magnetic Content)– Better ideas, execution – including video– Providing multiple engagement options within the banner
• SCIENCE – Using data & analytics to better target, deploy and measure ads (Performance Measurement)– Real-time bidding– Audience targeting– Integration with other media
Marketers are getting better at both the Art and Science of display advertising:
“Creative is about 70% to 80% of the effectiveness of advertising.”
--Jon Gibs, VP media analytics, Nielsen
Creative execution counts
With online video...
• Tell a story• Create a laugh
• Visualize a product benefit
Is it FUN?Home sales of blenders up 700% since the video
series began!
Believe in the Magic of Magnetic Content and Performance Measurement“I do hope Geoff
realizes his time is up”
“Thank you”eMail [email protected]
Twitter @geofframsey
eMail [email protected]
Twitter @geofframsey
(www.Amazon.com)