1 three key strategies rex briggs, principal marketing evolution [email protected]
Post on 19-Dec-2015
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Three Key StrategiesThree Key Strategies
Rex Briggs, Principal Marketing EvolutionRex Briggs, Principal Marketing Evolution
[email protected]@marketingevolution.com
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1995 1996 1997 1998 1999 2000 2001 2002 2003
Penetration
Consumer media usage has shifted Consumer media usage has shifted dramatically in the past few yearsdramatically in the past few years
Significant growth in the numbers using the Significant growth in the numbers using the InternetInternet
Substantial increase in percent of time spent Substantial increase in percent of time spent onlineonline
Arguments for updating the mixArguments for updating the mix
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““When I point, When I point,
look where I point, look where I point,
not at my not at my finger.”finger.”
Warren McCulloch, noted neurophysiologist Warren McCulloch, noted neurophysiologist and father of computational neuroscienceand father of computational neuroscience
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These shifts These shifts
change the effectivenesschange the effectiveness
of the old marketing mixof the old marketing mix
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Three insightsThree insights that reveal that reveal
effectiveeffective and and cost efficientcost efficient approaches to Online Marketingapproaches to Online Marketing
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Being Online is about bringing Being Online is about bringing your brand message to consumers…your brand message to consumers…
Insight #1Insight #1
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The power of being reaching out to consumersThe power of being reaching out to consumers
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Engage the User in a Meaningful WayEngage the User in a Meaningful Way
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Sell to Decision MakerSell to Decision Maker
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Being Online is about bringing Being Online is about bringing your brand message to consumers…your brand message to consumers…
Leverage advertising, sponsorships, Leverage advertising, sponsorships, email and other outbound effortsemail and other outbound efforts
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Economics of Websites versus sponsorshipsEconomics of Websites versus sponsorships
Several in-depth economic analysis of Several in-depth economic analysis of website vs. sponsorships have revealed a website vs. sponsorships have revealed a powerful cost advantage to sponsorships powerful cost advantage to sponsorships strategiesstrategies
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Economics of influencing brand imageEconomics of influencing brand imageWebsite versus advertising Website versus advertising
Sponsorship ReachStrategy
360* people w/positive
brand association
10,000
3.6pt increase 500 Clickthroughs
to website*
10,000
38 people w/positive brand
association
7.5pt increase
5% CTR
ClickthroughTypical Case
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Online advertisingOnline advertising
Online ads increased key perceptions by an Online ads increased key perceptions by an average of 2.7 pointsaverage of 2.7 points
Novell
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Comparison of website versus ad strategyComparison of website versus ad strategy
Upfront investment: Upfront investment: • Under $10,000Under $10,000Media investment: Media investment: • $990,000 ($50 CPM freq 4)$990,000 ($50 CPM freq 4)
Reach potential: 70% (5,000,000)Reach potential: 70% (5,000,000)
Effect: 2.7pt gain (135,000 people)Effect: 2.7pt gain (135,000 people)
Cost per person effected $7.40Cost per person effected $7.40
Upfront investment: Upfront investment: • Approx $1,500,000Approx $1,500,000Media investment:Media investment:• $500,000 ($50 CPM freq 4)$500,000 ($50 CPM freq 4)
Website reach : 5% (300,000) Website reach : 5% (300,000)
Effect: 7.2pt. gain (21,600 people) Effect: 7.2pt. gain (21,600 people)
Cost per person effected $92.60Cost per person effected $92.60
Target: 7 million IT decision makers/influencers for corporate servers
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Sponsorships are typically 3 to 5x more Sponsorships are typically 3 to 5x more cost efficient compared to clickthrough cost efficient compared to clickthrough visits to your website CRM approachvisits to your website CRM approach
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Sponsorships work better Sponsorships work better
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The key to optimizing sponsorship value is The key to optimizing sponsorship value is more than brand linked experience…more than brand linked experience…
… …it is information gathering it is information gathering for for re-marketingre-marketing
Insight #2Insight #2
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Brand awareness increased Brand awareness increased 28% and intent to purchase 28% and intent to purchase increased 5% increased 5% (Source: E-valuations, 2000)(Source: E-valuations, 2000)
Web event case exampleWeb event case example
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Loyalty program through a portalLoyalty program through a portal
For existing customers, loyalty For existing customers, loyalty programs can impact repeat programs can impact repeat purchases and brand loyaltypurchases and brand loyalty
Leverage existing customer Leverage existing customer databases to reward loyal databases to reward loyal customerscustomers
Personalized sites, product tie-Personalized sites, product tie-ins (frequent participants in ins (frequent participants in sweepstakes, contests and sweepstakes, contests and programs earn merchandise)programs earn merchandise)
Track ROI through number of Track ROI through number of repeat visits, increase in offline repeat visits, increase in offline purchases, opinions through purchases, opinions through online surveysonline surveys
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One critique:Put your logo where it is visible
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“Put your logo where it is MOST visible”
But, did they go too far?
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Coca-ColaCoca-Cola
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Key best practicesKey best practices
Tie Sponsorship programs to your Online Tie Sponsorship programs to your Online advertising serveradvertising server
These programs can in and of themselves drive sales These programs can in and of themselves drive sales volume…volume…
But they are also a source for valuable information about key But they are also a source for valuable information about key consumersconsumers
Set-up the program so that you can segment your Set-up the program so that you can segment your consumers (by product type, and other relevant consumers (by product type, and other relevant dimension).dimension).
Link the ad server on the segmentation page so that all Link the ad server on the segmentation page so that all advertising on other web pages can recognize the type of advertising on other web pages can recognize the type of consumer, and send the appropriate advertisementconsumer, and send the appropriate advertisement
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Insight #2Insight #2
Use sponsorships to learn about your Use sponsorships to learn about your consumers AND remarket to key targetsconsumers AND remarket to key targets
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Loyalty Program TargetingLoyalty Program Targeting
consumer
Web Browser
Ad Server
Web Site
Coors Universal Coors Universal Segment CookieSegment Cookie
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Time passesTime passes
Over the next several months, Coors can target based on segment
April May June July August September October November December
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Using Loyalty programs to target the right Using Loyalty programs to target the right consumersconsumers
consumer
Web Page
PUT AD HERE
Web Browser Web Site
Ad Server
The Twins miss youThe Twins miss youCoors Light Coors Light
Segment CookieSegment Cookie
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Using Loyalty programs to target the right Using Loyalty programs to target the right consumersconsumers
By using the loyalty program to segment By using the loyalty program to segment consumers (and link to ad server) you consumers (and link to ad server) you can…can…
Deliver the right ad message, to the right Deliver the right ad message, to the right consumerconsumer
Thus maximizing the value of the advertising Thus maximizing the value of the advertising opportunity to get the MVC the relevant messageopportunity to get the MVC the relevant message
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Timing your communication to you Timing your communication to you MVC can will produce better MVC can will produce better resultsresults
Insight #3Insight #3
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Surround the consumer with your messageSurround the consumer with your message
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Time of day targetingTime of day targeting
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Purchase preference is influenced by time of dayPurchase preference is influenced by time of day
Lunch
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The nature of your communication may The nature of your communication may change over the course of the daychange over the course of the day
The products you promote may vary over The products you promote may vary over the course of the daythe course of the day
Leverage Online’s natural dayparting Leverage Online’s natural dayparting strengthsstrengths
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Closing thought from XMOSClosing thought from XMOS
Have you re-evaluated your Have you re-evaluated your marketing mix?marketing mix?
Form a working groupForm a working groupInclude key brand, agency and measurement team Include key brand, agency and measurement team membersmembers
1.1. Examine how online fits into delivering coverage to Examine how online fits into delivering coverage to your targetyour target
2.2. Measuring Online side-by-side with Offline in terms Measuring Online side-by-side with Offline in terms of relative effectivenessof relative effectiveness
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““When I point, When I point,
look where I point, look where I point,
not at my not at my finger.”finger.”
Warren McCulloch, noted neurophysiologist Warren McCulloch, noted neurophysiologist and father of computational neuroscienceand father of computational neuroscience
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TEST, TEST, LEARN, LEARN,
EVOLVE.EVOLVE.
[email protected]@marketingevolution.com
ConclusionConclusion