1 / 27

Delivering ROI, Internationally

Delivering ROI, Internationally. Ian Manning Head of Client Services – International ZenithOptimedia International 09 October 2009. “marketing departments have an inadequate understanding of financial controls”. Source: Advertising Age, July 2008. Profitable Growth.

betty_james
Download Presentation

Delivering ROI, Internationally

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Delivering ROI, Internationally Ian Manning Head of Client Services – International ZenithOptimedia International 09 October 2009

  2. “marketing departments have an inadequate understanding of financial controls” Source: Advertising Age, July 2008

  3. Profitable Growth

  4. “Companies showing a commitment to measuring marketing tend to be better at delivering profitable growth”

  5. Brand Power Media Investment Drivers of Profitable Growth Brand Power Distribution Pricing

  6. Econometrics attempts to isolate drivers by ‘unbaking the cake’ • Based on detailed P&L inputs and marketing channel response functions at the market, portfolio, brand and sku level

  7. “Every brand in every country that has done marketing mix modelling or marketing ROI (econometric analysis) has improved the productivity of its marketing spending without exception” AJ Laffey Chairman, P&G

  8. 2006 2007 2008 2009 2010 2011 Media is a Significant investment ($454 Bill in 2009) Source: ZenithOptimedia Forecasts, July 2009

  9. The Challenge for us is to understand the relationship between Media Investment and Profitable Growth Media Investment Profitable Growth

  10. Media Metrics Web/banner Metrics Search Metrics Media Investment Profitable Growth Brand Metrics In-Store Metrics Website Metrics Many Metrics are Available to bridge the gap

  11. Media Metrics Media Metrics Reach Frequency Grps Social mentions Positioning Web/banner Metrics Impressions Clicks Unique Users Cost Per Thousand Cost Per Click Interaction Rates Search Metrics Impressions Clicks Unique Users Cost Per Thousand Cost Per Click Interaction Rates Revenues

  12. Website Metrics Site visits engagement index dwell-time brochure requests test-drive requests In-store Metrics Store traffic Sales conversions Questionnaires Brand Metrics Awareness Familiarity Liking Consideration Preference Market Share Customer value Brand/Client Metrics

  13. Delivering ROI • Setting the right objective • Setting the right levels • Move from Measures to Outputs • Make it actionable

  14. 90% of campaigns with ROI goalsdeliver satisfactory results Source: Moore and Allsop, 2004

  15. 1. Setting the right Objectives Consideration / purchase intent tracking Awareness tracking Brand equity & image tracking Sales data EPOS data Usability tests Qualresearch PR tracking WOM tracking Buzz tracking Net Promoter Loyalty tracking Newsletter clicks WOM tracking

  16. 1. Setting the right Objectives Reach (Grp’s, Impressions) Brand tracking awareness changes Search keyword mentions Blog mentions Time on Website Newsletter downloads Event attendance Repurchase

  17. 2. Setting the right Levels • Use Past performance as a guide • Where own data is not possible, use competitor data or norms data • Consider the required level to deliver the right conversion rate

  18. 3. Move from Measures to Outputs

  19. 4. Think ROI throughout the Process

  20. SOV/SOM • 2.2% growth in share of market (SOM) per 10% points of excess share of voice (SOV-SOM)* *IPA 127 case examples IPA Effectiveness Awards cases 1980 to 2008

  21. Response Curves More profitable markets/channels are more attractive Sales/ Profit Less profitable markets /channels are less attractive Media investment

  22. Target descriptions influence investment 350 GRP’s 73% Reach 4.8 OTS AB Men 35+ AB Men 35-55 Top Income €90k less expensive

  23. Better target understanding creates ROI Plan 1 604 GRPs €320,000 20% Specialist Channels 10% less ratings25% less budget Plan 2 545 GRPs €240,000 37% Specialist Channels

  24. Negotiation Tactics for greater value HARD Network Prime Leverage Value Premium Cable Cable OOH Digital Local TV Leverage Rates Magazines Radio SOFT

  25. Ensure the metrics chosen can be affected by changes to the investment strategy • Ensure the metrics chosen can be influenced during (not only after) the campaign • Live Dashboards allow us to evaluate multiple metrics during campaigns • 5. Make it Actionable

  26. Living • ROI • Clarify and agree desired outcome with all stakeholders • Audit available metrics • Agree KPI (and link to rewards) • Set ongoing measurement in place • Ongoing campaign optimisation through live dashboards

  27. The ROI Agency

More Related