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)
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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
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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
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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