Conference Buddies

MODERATOR:
David Helmreich, VP, Interactive Markets, TARGUSinfo

PANELISTS:
Jim Waltz, President, Traffic Marketplace
Leon Zemel, Senior VP, Analytics, [X+1]
Neil Kaplan, Senior VP, Business Development, Vantage Media
Zach Weinberg, Co-Founder and CEO, Invite Media

Drive the right ads to the right audience

High Quality Ad Network:

• Infuse technology & deliver with relevance
• Efficiency
• Internal control over infrastructure
• Transparency

Quality of leads from affiliate has degraded (increase in fraud)

Exchange 1.0 – pre-bid environment
Exchange 2.0 – agencies, advertisers, what to bid based on content

Critical for Selection of Partners for Advertisers:

1. Trust
2. Reach
3. Relevance

Ad Networks and Exchanges

Ad Networks:

400+ Ad Networks currently, 18 trilliion pageviews a day, $7 Billion revenue for top 20%

Sloan/MediaCom:

70/30:  70% long tail buys, 30% general buys
$650 Billion market world wide

Google:

• Platform (Ad serving/management)
• Ad Network (Content network)
• Ad Exchange (Ad networks are their customers)

Google has 23% of online display advertising market

Fox Interactive = owns hundreds of properties

During the Great Depression these brands spent more on Advertising and bounced back:  Twinkies, Purina, Converse, HP, Pittsburg Steelers, Coolwhip

$1 Billion spent in digital by Group M with 1300 publishers

You need to understand consumer behavior

Marketing Effectiveness – Improving Accountability and Returns to Impact Business Performance

MODERATOR:
Christopher Marriott, VP, Global Managing Director, Acxiom

PANELISTS:
Chris Caputo, VP, Digital Media Strategy, Optiem, Inc.
Cheryl Kellond, Senior VP, Advertising Business, Choice-stream
Jeff Hirsch, President and CEO, AduienceScience
Geoff Atkinson, Senior VP, Marketing, Overstock.com

Lessons of Direct Marketing

• Consumer insight first. Connect behavior to spend.
• Technology is the gateway to optimization
• Insight without execution … is pointless

73% few dollars spent per hour of target audience consumption Digital vs. TV

A New imperative in Touch Economic Times

• Decreasing number of purchase opportunities has big implications
• Tradiitional retail marketing vehicles – search and newpapers – are at their limits
• Display has all the right components: Reach, frequency, expanding purchase options
• However, until now display has under-delivered is potential

Unlocking the Performance in Online Display

Two Distinct Components

Finding the Right Audience:

• Retargeting is always a smart marketers winning bet

Delivering the Right Message:

• 1:1 messaging with the in-marketing relevance of search that creates an “occasion to purchase” like catalog

Category Specific Ad

Overstock.com

• ChoiceStream RealRelevance Advertising
• Dynamically created display Ad + landing page
• Personalize products & offers
• Purchase paterns (what they bought, what they did)
• Serve up on landing page the products the user had added to basket but didn’t purchase/abondoned, and also serve up related items below that

Conversions per Thousands of Impression (Over 3x Advertising Lift)
Revenue per Thousand Impressions   (3x-5x Lift)

———

American Greetings.com

$5M to $10M visitors a month

Challenges

• Acquisition Campaign
• Growing Competition
• Complex Traffic Patterns
• Huge Product Variety

Need: Better visibility into profit drivers

Attribution Management funnel

Awareness -> conisderation -> favorability  -> purchase  ->  loyalty
ecard -> funny ecards -> american greetings -> $$$

Data Mart:

• Media (Paid Search, Display banners, Shopping engines)
• Behavior (Visits, Engagement, Conversion)
• History (Products, COGS, Profit)

Actions

• Identified – Introducers, Influencers, Closers
• Re-allocated budget
• Eliminated losers
• Fill top of the funnels
• Feeding eagles, starting the pigeons

Make smart decision on the data

CPC = 13% increase
Spend = 32% increase
Profit = 28% increase  (due to better optimization)

Example – Moen.com

Situation:

• Cut Tradeshow Budget
• New Product Launch
• Increased Competition
• Diverse Audience

Need: Refresh CRMS data
And get new product info out there

Guerilla Tactics:

• Timed email communicaions post show
• Announced new products launch
• Masked CRM refresh with sweepstakes
• Added urgency to complete the form

Opens = 7% increase
Response = 43% increase
Within 48 hours = 1/2 of audience responded already

Takeaways

• True Analytics not Google Anlytics (only 1/3 of puzzle)
• Pay attention to consumer behavior
• Hard times requires creativity

Misc:

Relevancy creates Engagement & Trust

————–

Sketchers Case study

Targets Prospects across AudienceScience Targeted Marketplace

Objective

• Increase sales
• Masximize return on Ad spend
• Drive new and qualified visitors

For Sketchers.com only 1% of revenue comes from online, but focusing more efforts in that area.

Revenue Sources:

15% thru stores 15% Int’l, 1% online, > %70 from retail stores/partners

Solution:

Behavioral and demographic targeting from AudienceScience and other ad networks helped Skechers identify qualified prospects on their site, gauge their interest and intent, and then group these users into segments that they could serve re-targeting ads to

3% conversion rate on website

Optimized and tested from 20 Ad Networks to 12
Utilizing retargeting

Soho Labs (bought other brands)
Tag the user (women section, kids products, left item in cart, etc.) (serve Ad based on shoes left in cart,

ROAS = Return on Advertising Spend = (Revenue/Cost/Cost)

Return on Ad spend was 617% over the course of the campaign
The campign was optimized on a weekly basis to ensure success

• Analyzed impression volume versus clickthrough rate to ensure qualified traffic through the Run of Networkr= impressions, and conversion rate versus eCPA for retargeted Skechers visitors (90% retargeting vs. 10% RON)
• Skechers was able to continually revife its creative for maximum results

Lower performers ask for better rates

Run 3 to 5 creatives to test

Not opinion or bias, optimize by performance

Q2 2009:

• Create Storyboard across multiple Ad netowrks, allowing fo more personalize messages to specific customers
• Determine last-touch attribution for Ad buys and removal duplicate order issue
• Allows for aggregate learning across all networks in order to help optimize campaigns and Ad sizes
• Reduces strain on internal IT by utilizing universal tags that marketing team controls

————–

Name changed:
Banner Ads = Display Ads (because video, buy in ads, etc.)

Sketchers:
Search vs. Display = less than 20% spent on Display vs. Search
More money from retargeting display Ads than search

Data drives decisions

Fishing where your fish are

Search (SEO, PPC) is the best acquisition channel. It facilitates demand, but doesn’t generate demand

MODERATOR:
Michael Dunn, CEO and Chairman, Prophet

PANELISTS:
Margaret Beck, VP, Brand Direct Marketing, Williams-Sonoma, Inc.
Kelley Quain Troia, Senior Director, Marketing Operations, Wal-Mart
Aseem Chandra, Senior VP, Product Marketing, Omniture

1. Measurability give insights for strategy: creative & execution choices
2. Transparency
3. Predictability

Accountable Marketing Investment Levers:

1. Strategy
2. Content
3. Marketing Vehicles
4. Investment
5. In-Market Execution
6. Fixed Cost Management

5 Common Barriers:

1. Poor Data
2. Poor Time Investment (Not Priority)
3. Poor Analytics Understanding
4. Capability Constrained
5. Process/Goverence Constrained (lack of communications between departments)

Holistic Path

Decision Making & Measurement:

Great Strategy > Great Creativity > Great Execution > Great Analytics

Cross Channel Measurability

Marketing Mix Modeling

The need to understand Statistical Analysis + Historical Data:

1. What are you measuring?
2. Why are you measuring?
3. What is considered successful?

Variation is key for testing.

Measurability = Process Oriented

Around 32 different channels:

• print
• TV
• radio
• twitter
• video
• blog
• many online channels

Brand equity = long term view (not immediate results), loyalty

Structured experimentation to find new approaches/audience/opportunities

SPEAKER:
Darren Guarnaccia, VP, Product Marketing, Sitecore

1. Continuity of messaging throughout the process: aligning message to what customer expects
   • Bring customer back to why they started
2. Segment & Balance user experiences with site goals
   • Build credibility with visitors & prospects
   • Example: Omni Hotel advertise around local attractions to align with what customers wants – FUN
3. Deliver value back to your web visitors by waiting for the right moment
   • Lead scoring: scoring & waiting for visitor interactions (behavior)
   • Behavior: wait until they are ready based on their actions
   • User experience must win
   • Differentiating experience
   • Word of Mouth (WOM) Marketing
4. Learn to Learn: listening to your segments & optimizing messaging
   • Scoring your content & actions
   • Testing & validating with plils & surveys
5. Overcome objections & barriers using community content & engagement
   • A website is an active participant in moving prospects into the sales process: the 6th man of the sales team
   • A website helps/educates customer overcome the hurdles, objects, pain points
   • A website helps shorten the sales cycle
   • Customer look for: Affordability, Expertise, Location
6. Get the conversation started: Long-Term customer value through engaging dialog
   Engagement in community content:
   • Customer Reviews
   • Company working out rough spots with clients publicly
   • Use to build trust & credibility
   • Use to help overcome objections
   • Social content based on relevance (provide free tips, recipes, ideas for users to use your product) to drive prospects deeper to your website
7. Provide ongoing content & experience for which visitors hunger and return
   • Subscriptions
   • New content to bring back customers
   • Use ratings/reviews to determine what customers want
   • Creating long-term value overtime by re-engaging prospects

Tap the wisdom/behavior (the most popular stories/whitepaper/content) of the crowd as a filter.

Media Boot Camp Power Session:  The Modern Agency

MODERATOR:
Tim Hanlon, Executive VP, Managing Direcor, VivaKi Ventures

PANELISTS:
Torrence Boone, CEO, Enfatico
Jordan Warren, President, San Francisco, Agency.com
Sharon Gallacher, Global Media Director and Managing Director, Neo@Ogilvy San Francisco
Winston Binch, VP and Managing Director of Interactive Crispin Porter + Bogusky

• Advertising, Direct, CRM, Ad Analytics all in one P/L
• Integrated agency, leveraging strengths from world wide (i.e. bangladesh)
• Attack specific business challenge (modern business challenges)
• Full service digital agency

Integrated Marketing

• Brand communications that can sell
• Media agency bundled – own business plan, salaries, etc.
• Media thinking and technical thinking put where the creative momentum is.
• Hyper-targeted – video components served by audience type (by gender, sport, etc.).
• New disciplines interaction director, technology director added to the modern agency (in addition to the creative, media buying, other roles)
• Focus on analytics
• From an agency perspective, no one figured out social media, mobile, etc.
• Poor economy places more emphasis of accountability
• Don’t confuse Tactics with Strategy
• Re-engineering to measure ROI
• Companies don’t measure the impact of media on search / seo

Integration vs. Re-Integration vs. Silo
Money vs. Ego
Holding company  (scale, financial, leverage)
WPP/Y&R/ plug into capabilities

Brand vs. Performance

• All is performance, it’s how you measure it

ad:tech San Francisco 2009
April 21, 22, 23
San Francisco, CA

ad:tech is an interactive advertising and technology conference and exhibition.
Worldwide shows blend keynote speakers, topic driven panels and workshops to provide attendees with the tools and techniques they need to compete in a changing world.

To find more information about ad:tech, or to find more information about their conference, visit:
http://www.ad-tech.com/sf/adtech_san_francisco.aspx