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MARKETING MIX CHALLENGE: DECLINING DOLLARS / GROWING PLATFORMS

MARKETING MIX CHALLENGE: DECLINING DOLLARS / GROWING PLATFORMS. MEDIA CHANNELS. 100%. TV. 80%. PRINT. SOCIAL MEDIA. BUDGET. MOBILE. 60%. ONLINE VIDEO. PAID SEARCH. 40%. 2002. 2006. 2012. 20%. #C360. 0%. Show graphic that of traditional media plus emerging platforms

candace-hanson
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MARKETING MIX CHALLENGE: DECLINING DOLLARS / GROWING PLATFORMS

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  1. MARKETING MIX CHALLENGE:DECLINING DOLLARS / GROWING PLATFORMS MEDIA CHANNELS 100% TV 80% PRINT SOCIAL MEDIA BUDGET MOBILE 60% ONLINE VIDEO PAID SEARCH 40% 2002 2006 2012 20% #C360 0% Show graphic that of traditional media plus emerging platforms With flat/declining marketing budgets

  2. MEASURING SUCCESS REQUIRESFACT-BASED LEARNING QUANTIFYING MARKETING RETURNS IS NOT SIMPLE SOCIAL MEDIA DIGITAL GRANULAR • TACTICAL TRADITIONAL MASS • REACH #C360

  3. THE SOLUTION • MARKETING MIX IS STEP 1 • GRANULAR DATA + COSTS + CLIENT DETAILS = FORWARD-LOOKING, PRESCRIPTIVE OPTIMIZATION • MAGNITUDE OF RESULTS ARE SURPRISING #C360

  4. REI – A UNIQUE CORPORATE CULTURE KAYAKING BIKING SKIING ECO-FRIENDLY CUSTOMER SATISFACTION #C360

  5. FACT-BASED INSIGHTS = OPTIMAL RESULTS ROI 59% 1 2 3 #C360

  6. MEASURE EVERY TACTIC IN A MEANINGFUL WAY NON-BRANDED BRANDED PAID SEARCH DIGITAL TVRADIO PRINT PAID COMPARATIVE SHOPPING ENGINE UNPAID #C360

  7. MEASURE ALL SALES CHANNELSBOTH TRADITIONAL AND ONLINE TRADITIONAL RETAIL STORE SALES COMPLETE TACTIC PERFORMANCE DIGITAL REI.COM SALES BY DMA #C360

  8. FIND THE TRUE SOURCE OF AN INCREMENTAL PURCHASE AND OVERCOME THE “FALLACY OF LAST TOUCH” EXAMPLE #1 EXAMPLE #2 Marketing mix models would correctly give credit to TV Assigning credit by tracking click thru patterns would incorrectly give credit to Search Marketing mix models would correctly give credit to Display Because there is no way to directly track clicks from display to retail, credit would be “lost” KEY PROPERLY CREDITED IMPROPERLY CREDITED #C360

  9. 3-STEP PROCESS TO ANALYZE CURRENT BUSINESS PERFORMANCE MARKETING MIX MODEL- METHODOLOGY ALIGN SALES WITH MARKETING STEP 1 SALES DIRECT MAIL TV TIME #C360

  10. 3-STEP PROCESS TO ANALYZE CURRENT BUSINESS PERFORMANCE MARKETING MIX MODEL- METHODOLOGY STEP 2 SALES DIRECT MAIL TV ATTRIBUTE SALES TO ACTIVITIES OCCURRING WHEN SALES INCREASED Print TV Direct mail Online Core #C360

  11. 3-STEP PROCESS TO ANALYZE CURRENT BUSINESS PERFORMANCE MARKETING MIX MODEL- METHODOLOGY STEP 3 ANALYZE RESULTS EXPLAIN CHANGEVS. YEAR-AGO CALCULATE ROI #C360

  12. CUSTOM OPTIMIZATIONS IDENTIFY BEST POSSIBLE INVESTMENT TV PRINT ONLINE MARKETING MIX MODELS OPTIMIZED PLAN MARKETING COSTS AND PRODUCT MARGINS BY ACTIVITY BY WEEK BY BRAND BY CHANNEL BUSINESS RULES #C360

  13. OPTIMIZATION: SAME BUDGET, BETTER RESULTS Current Spend Optimal Spend Cut $500k Lose 2,500 units 40,000 40,000 35,000 35,000 30,000 30,000 TV TV Online Online 25,000 25,000 INCREMENTAL IMPACT INCREMENTAL IMPACT 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 0 250 500 750 1000 1250 1500 0 250 500 750 1000 1250 1500 Add $500kGain 12,000 units SPEND IN CHANNEL SPEND IN CHANNEL ROI = $1.25 ROI = $1.42 #C360

  14. CONTINUOUS IMPROVEMENT = IMPROVED PERFORMANCE REFINE MODELS MORE GRANULARITY NEW TACTICS #C360

  15. MAKE STRATEGIC SHIFTS IN YOUR TIMING #C360

  16. MAKE STRATEGIC SHIFTS IN YOUR MARKET RADIO MARKETS DIGITALMARKETS TVMARKETS ALL TACTICSMARKETS CHICAGO MADISON MILWAUKEE SAN FRANCISCO BOISE AUSTIN BOSTONATLANTASAN DIEGO SEATTLESALT LAKE CITYMINNEAPOLIS #C360

  17. ACCOUNT FOR DIFFERENCESACROSS SALES CHANNELS 14.7% RETAILSALES 2.9% BUDGET ONLINE SALES (2.5%) REVENUE (8.7%) #C360

  18. HOW TO IMPLEMENT • KNOW NOT ONLY WHERE MARKETING DOLLARS WENT, BUT WHERE THEY SHOULD GO • INCREASE PRECISION WITH MORE GRANULAR DATA AND MAKE MORE SUCCESSFUL STRATEGIC DECISIONS • CONTINUOUSLY REFINE/IMPROVE BASED ON THE CHANGING ENVIRONMENT #C360

  19. WHAT DID YOU THINK? RATE THIS SESSION USE THE MOBILE AGENDA: SELECT SURVEY FIND THE LINK FOR YOUR SESSION USE YOUR PC OR IPAD: NIELSEN.COM/C360 ACCESS THE ATTENDEE ONLY LINKS

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