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Performance Branding: Making Branding Accountable

Oct 19, 2014

ReportDownload

Business

 

Slide 1

Digitally Centric

Performance

Marketing

John Nardone

Chairman & CEO, [x+1]

April 23, 2009

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We all know business is tough right now..

Consumers are under pressureso they are doing more research, and giving more consideration to their purchases and relationships

Consumers continue to migrate more and more of their personal time and media consumption time onlineeven as traditional media vehicles like newspapers and magazines falter.

Meanwhile, many industries face unprecedented financial stress

and marketers in all industries are under pressure to justify and be accountable for their budgets as never before.

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A new take on performance marketing

What is performance marketing

Three pillars of performance marketing: An new purchase funnel

All marketing is response marketing

Return on behavior

Example: Performance marketing at work

Making it work in your organization

Building a roadmap to success Existing skills in a new context

New technologies

Example metrics

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Performance marketing is

Marketing that is continually optimized to perform (deliver positive ROI), based on measureable consumer response metrics.

Direct response marketing is performance marketing

Search marketing is performance marketing

For considered purchase categories, even brand marketing can be

performance marketing, if it puts digital at the center of the marketing plan.

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awareness

consideration

intent

purchase

The Traditional Purchase Funnel is wrong

In the traditional purchase funnel,

there was a bright-line

distinction between

awareness and conversion and the corresponding brand marketing and direct marketing budgets, strategies and tactics

employed.

Search marketing has changed the consumers buying process forever.

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need or desire

A New Purchase Cycle*

As control has shifted toward the consumer, a

cycle has replaced the funnel

Need is immediately researched

Search both drives awareness and establishes

consideration sets

Options are instantly ranked and refined

ranking and

refinementconversion & purchase

awareness

& investigation

search

*Thanks to Ed See, Principal, Ed See and Associates

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Implications of the New Purchase Cycle

Lessens the impact of mass media

Impairs the incumbent advantage for cross sell/upsell

Shifts focus to your website

Collecting and leveraging the right information

Managing the experience

Aggregation, review sites and blogs become important arbiters

Search and websites provide a simple means for consumers

to act, and for marketers to track that action.

With digital at is center, all marketing

can be response marketing

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It is only prospect recognition and expected timing of

response that differentiate our marketing disciplines

Known prospect

Purchase laterPurchase now

Unknown prospect

Promotional

Marketing

Classic Brand

Marketing

Relationship

Marketing

Direct

Marketing

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Building awareness, changing attitudes are weak goals:

instead, drive to immediately measureable action.

New architecture: Build marketing plans to put digital consumer behavior

at the center

New metrics: Define behavior-based metrics. Survey-based metrics such

as awareness, attributes and intent are insufficient.

New campaign management: Manage campaigns to success by monitoring

real-time consumer behavior

metricsideally calibrated to ROI.

Performance Marketing optimizes campaigns to measureable

consumer behaviorseven classic brand marketing.

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Performance marketing drives Return on Behavior

Performance marketing applies direct response concepts, even to brand campaigns:

by overcoming prospect anonymity

by identifying indicators, or constructing behavioral proxy measures for movement through the purchase cycle

by calibrating those measures to sales

by then optimizing the campaign to the approximated ROI measures

Lets talk cheese

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Case Study: Krafts Approach

Kraft launched an online performance branding campaigns based on research on recipe clipping.

Recipe clippers where identified as a segment of consumers who saved printed recipes, then reported behavior around trying those

recipes, and ultimately adopted some of them into their regular meal

routines.

Most importantly, Kraft found that recipe clipping translated directly into more sales of Kraft products.

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Case Study: Krafts Implementation

Calibrated a value for a downloaded recipe

Built an ROI based branding campaign around recipe

downloading.

Campaign optimized to an allowable cost per recipe

Eventually, campaign expanded to include other interactions, including

shopping lists, email registrations

and magazine sign-ups.

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Case Study: Krafts Results

Krafts performance branding campaign led to millions of downloaded recipes and measureable Kraft sales.

Although it used direct marketing skills, all the campaigns messaging reinforced Krafts ethos: For busy moms, Kraft makes nutritious meals easy.

Make Performance Marketing

Work for You

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Companies need a roadmap to help them build

marketing performance capability

Benefits / Characteristics

Improved Digital Performance Increasingly Dynamic Greater Prospect Knowledge

Use a maturity model to set

priorities and articulate value

What are your current capabilities to manage marketing

performance?

Where do you want to get to, what is the business value of

getting there?

Implementing a plan: Required capabilities, programs,

and skills to deliver on the vision

Digital Performance-Based Marketing Maturity Model

1 Broadcast Marketers

2 A/B Advocates

3Personalization Pros

4 Value Validators

5 Channel Champions

17

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Three keys to success

Integrate your companys direct marketing, brand marketing, and digital skills

Get experience with new one to one digital technologies

Display ad exchanges 2.0

Audience tracking and profiling

Web page personalization/optimization tools

Create simple, trackable metrics and discipline for continuous optimizationeven for your TV and mass print advertising.

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Integrate skills

In many industries, the skills you need are already in your organization

Necessary skills reside in:

Direct mail analytics team

Web development/ecommerce/online analytics

Search

Advertising/Branding/Marcom

Breaking down functional silos (or working around them!) is the biggest challenge for marketers

Set up cross functional teams around behavioral campaign objectives

How will the campaign impact each stage of the purchase cycle?

Use new technology to enable

one-to-one marketing

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21

Online ad exchanges allow display ads to target

individual consumers or consumer segments

Online ad exchanges bring open market bidding to display ads.

Exchanges provide access to inventory on a per cookie/per impression, real time bid basis much like a stock or commodities exchange.

Based on search experience, marketers will buy display on a ROI basis, but new skills/capabilities are required.

In the absence of publisher and context, online data that can inform both targeting and the price an advertiser should pay for inventory becomes critical.

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Are you talking to the right audience?

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Visitor A:

Frequent flier Skymiles Member Weekend trips to Colorado during the

winter months

Visitor B:

New to Delta.com Searched for a flight to Des Moines

Are you giving them the right offer or experience?

VAR 1

VAR 2

VAR 3

VAR 4

VAR 2A

VAR 5

Close the deal when you have the chance, with just the right offer.

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Website Traffic, Clicks

and View-throughs

Direct Traffic

(URL input)

Search

Velocity

Are they responding?

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Performance Marketing Payoff: Do more with less

Companies with a strong DM competency and culture will get there first

Their agencies will have to adapt:

More integrated planning

More analytic competency

More creative assets to address segments