engaging the whos
TRANSCRIPT
Engaging the Who’s
Tim SutherSVP, Multichannel Marketing [email protected]
http://www.linkedin.com/in/timsutherhttp://twitter.com/timsutherhttp://www.slideshare.net/TimSuther
Increase marketing performance by concentrating on your best customers and prospects
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Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
7% of disposable income is now saved – was 0%
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The differentiated value of customers
30% of customers deliver the majority of profits
50% Add nothing
20% Cost companies money
SAS
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A look at “who” at world class brandsCadillac
AllstateHershey
American Express
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments
UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
Source: Acxiom comScore (July 2009)
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…and at leading publishers
MSN96 MM UV’s
AOL70 MM UV’s
eBay56 MM UV’s
Yahoo148 MM UV’s
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments
UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
Source: Acxiom comScore (July 2009)
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Like a box of chocolates…
• With most media, you never know whoyou’re gonna get.
– ~80% online ad spend delivered to wrong audience. comScore 2009
• Knowing who determines:
– How much to invest…if anything
– What to say…without guessing
• Most firms…
– Over-invest in low value relationships
– Under-invest in high value relationships
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Concentrate ad spend to drive valueTypical payoff of 3-5x revenue/ad value
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Concentration Multiplier ROI IllustrationConcentrated Traditional Variance
Campaign CostImpression Volume 43,750,000 100,000,000Cost per Thousand 8.00$ 3.50$
Total Campaign Cost 350,000$ 350,000$ -$
Revenue GeneratedRevenue/conversion 375$ 250$ Clickthrough Rate 0.113% 0.075%Conversion to Click Rate 5.00% 2.00%Latent/viewthrough conv % 50% 50%Total Conversions 3,691 2,250
Total Revenue 1,384,277$ 562,500$ 821,777$ 146% higher
ContributionFrom clickthrough 572,852$ 25,000$
Total Contribution 1,034,277$ 212,500$ 821,777$ 387% higher
Revenue per Ad DollarFrom clickthrough 1.64$ 0.07$
Total Revenue/Ad Dollar 3.96$ 1.61$ 2.35$ 146% higher
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What to do nowUse the concentration multiplier principle to drive ROMI
1. Identify customer value
2. Invest proportionally
3. Find/recognize & engage accordingly
4. Measure acquired value
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The global interactive marketing services company
Thank You
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