engagement mapping tp display ads+search

Download Engagement Mapping Tp Display Ads+Search

Post on 12-May-2015




0 download

Embed Size (px)


Engagement Mapping Tp Display Ads+Search


  • 1.Thought Paper > Engagement Mapping Engagement Mapping A new measurement standard is emerging for advertisersEngagement Mapping counts every customer touch point (not justthe last) and enables advertisers to be more e ective, more creative,and more relevant with their digital marketing Table of Contents> Marketers Know Theyre Not Calculating Digital Advertising ROI Correctly 2 > The Last Ad Model vs. Conventional Wisdom2 > The Last Ad Model Miscalculates ROI3 > New Research Underscores the Need for a New Conversion Model 5Understanding the interaction between channels is critical5Overlap drives higher conversion rates6Branded search skews results from search advertising7 > Technology Driven Marketing8 > With Engagement Mapping, You Can Get There from Here 9Weighting factors 10 > Practical Application of Engagement Mapping10An easy transition12Stay on course, but go a lot further13 > About Microsoft, Atlas and the Atlas Institute 13 01 2008 Microsoft. All rights reserved. Microsoft Advertiser and Publisher Solutions

2. Thought Paper > Engagement Mapping Marketers Know Theyre Not Calculating Digital Advertising ROI Correctly. Until Now, Their Hands Have Been Tied.Marketers dont need to change the way they think. They need digital marketing technology and measures to conform to their standard marketing tenets. The outdated model for measuring return on investment from digital advertising falls short but a new model is gaining momentum. Digital marketing continues to incur an enormous amount of growth. The quickening proliferation of new digital channels, compelling web sites and countless new opportu- nities makes it difficult for marketers to keep pace, and even more challenging for them to reach and engage their audience. Moreover, the increasing percentage of people accessing the internet over high-speed connections has profoundly changed the consumption patterns of media. Large brands and direct response marketers are constantly seeking the right mix of channels, sites and interesting creative to engage their audience as effectively as possible. Yet when a digital advertising campaign is successful, they can only credit one of the many touch points their audience experi- enced. Typically, between 93% and 95% of audience engagements with online advertis- ing receive no credit at all when advertisers review the ROI on their campaigns. While the universe has been getting bigger, marketers have been forced to view it through a very limited lens. And the limited view constrains marketers vision, creativity and success. The reason for this misalignment is that the industry has been using a method of ROI measurement that only attributes credit for advertising effectiveness to the last ad clicked or viewed prior to a customer conversion. The last ad standard forces market- ers to pay attention to a small set of data, and ignore key information required to properly calculate the return on investment for each site and channel. In addition, it goes against conventional marketing wisdom, and therefore stands in the way of adoption, creativity and the innovative evolution of digital advertising by marketers who are seeking better results. The last ad model forces marketers to place greater importance on the aspects of their advertising that support the model, rather than the aspects that support their advertising success. The Last Ad Model vs. Conventional Wisdom The current last ad model attributes 100% of the credit for a conversion to the last ad seen or clicked. This is the current standard the industry has relied on to justify their digital media spend. The problem with this approach is that it ignores the contributions of any previous ads that led the customer down the road to that conversion. 02 2008 Microsoft. All rights reserved. Microsoft Advertiser and Publisher Solutions 3. Thought Paper > Engagement MappingContradicting the last ad perspective is the notion that most marketers believe inthe basic tenet that individuals respond to marketing messages differently depend-ing on their awareness of, interest in, or intent to buy a particular brand or product.To date, the industrys online ROI measurement models, including click-throughrates and the last ad standard have been significantly out of alignment with thesebasic marketing fundamentals. Additionally, a critical marketing concept, the sales funnel, is completely disre-garded by the last ad model. The idea is simple: different marketing messagesplay different roles for consumers. Some marketing messages drive awareness,others close the deal. In the offline world, broadcast media have typically been atthe top of the funnel while other channels, such as direct mail, have been used toinduce a purchase. In the last ten years, online media have moved from strictly adirect response medium to a multifaceted channel with the potential to reachconsumers across every point in their journey. The last ad model is exceptional atmeasuring ROI if your only goal is to measure the bottommost touch point in thesales funnel. In this regard, our current conversion attribution standard is sadlyout-of-touch with the reality of online marketing today.The Last Ad Model Miscalculates ROI by attributing credit to only the last click before a conversion.The model works as ifthe consumer doesnt see or click any other ads along the way.The Last Ad Model Miscalculates ROIThe last ad model is based on only a single engagement, so it forces marketers toplace greater importance on the aspects of their advertising that support the model,rather than the aspects that support their advertising success.Since the last ad model has forced marketers to attribute 100% of the credit to onlythe last click, marketers have logically allocated their marketing dollars entirely to mediathat sit at the bottom of the conversion funnel: search engines, sites and networks thatare the last stop on the conversion path.03 2008 Microsoft. All rights reserved. Microsoft Advertiser and Publisher Solutions 4. Thought Paper > Engagement Mapping To illustrate the faulty logic of the model, imagine that youre standing in the grocery store knowing precisely what you want to buy. Youve seen the product ads on TV, the full page ad in a magazine, and a full color mailer that actually made you hungry just looking at the pictures. Youve even clipped a coupon and brought it with you to the supermarket. When you ask the grocery clerk where to find the specific item, he smiles, points and says, Aisle five. Off you go to aisle five, find the item, pay, and leave the store. If you applied the last ad model to this scenario, the grocery clerk would get 100% of the credit for your purchase (no wonder hes smiling). As a result, marketers would invest heavily in grocery clerks, and theyd pull their advertising dollars from the marketing channels that actually piqued your interest or moved you through the funnel toward the purchase. Of course, everybody likes grocery clerks, but marketers need to invest in the most effective ways to get customers into the store and map each milestone along the way. Site A Site BSite C Site D Site E This is the way thatit really looks for an advertiser as peoplespend more time online.People interact with many channels. They see video online, interact with rich media, view and click on display and search ads, etc Right now marketers are optimizing their media buys based on the very last step in the process. But the last ad model is flawed. It ignores some very important questions: 1. How can marketers accurately reach their audience and plan campaignsif they are unable to calculate the return on investment on each of thetouch points upstream of the conversion? 2. What other factors beyond exposure (such as frequency and interaction)may lead to a conversion? 3. What is the interaction between different media? How much, forinstance, do search and display advertising interact? 4. Different ads, messages and media are employed at different points inthe conversion funnel. Which touchpoints make the greatest impactalong the way? Which make the smallest?04 2008 Microsoft. All rights reserved.Microsoft Advertiser and Publisher Solutions 5. Thought Paper > Engagement MappingThe last ad model is opaque. With an inflexible, black-box model, marketerscant make sound marketing decisions. Imagine a world where you could seeexactly which advertising experiences contributed to a conversion, and which wereless effective. To experience that world, you have to be able to see what youvebeen missing. New Research Underscores the Need for a New Conversion ModelRecent research proves that marketers benefit by understanding and consideringadditional factors in their ROI calculations. Evaluating the positive effects of thesynergy between multiple channels and duplicated reach can lead to a greater ROI.Research also shows that marketers benefit by reconsidering their reliance onsearch and the concept of the last ad. Understanding the interaction between channels is criticalWith the last ad model, not only is credit given to a single ad, but also a single channel.While the audience is viewing display ads, clicking on search ads and viewing web videoads, marketers can never attribute credit to more than one of those things.The reality is that multiple channels actually work together to increase conversions.Consider the impact of two popular channels, search and display. Search produces greatCPAs. It can be a very effective channel if you look at conversion rates and cost perconversion. It can also be a highly-qualified channel, reaching most consumers at thelast step of the conversion funnel. Someone who searches on your terms and clicks isprequalifying themselves as somebody who's interested in what you sell. In thepresence of such high prequalification, does it even make sense to incorporate displayadvertising in your campaign? If you've got this universe of searc