leveraging big data analytics in deriving consumer insights - lion&lion
TRANSCRIPT
Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com
Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com
Thank you to our sponsor & partners!
Gold Sponsor
Supported by
Organised by
lion & lion The digital agency
17th MAY 2013 - Insights Valley Asia
Stefan Bruun
Managing Director of Lion&Lion
Previously
• CMO, Asia Pacific at Rocket
Internet (E.g. Zalora, The Iconic,
Lazada etc.)
• Vice President at Groupon
• Investment Banking at Morgan
Stanley
I only have 25 mins, so today is not about what data is or how it is derived,
but about how we can use it
But first, a non-business example
Last photo together Feb 2009
At what time of the year do most guys propose to their girlfriends?
Searches for Engagement Ring
Mid-End December
Searches for Wedding dresses
January
Not everyone have a seasonal or cyclical business.
How can big data help retailers and brand owners?
Search
volume
Low relevancy
High cost of acquisition
Android
Android Tablet
Samsung nexus D
High relevancy
Lowest cost of acquisition
1.5M
150K
1300
• Brands • Product types • Accessories
• Customer acquisition
Available data can give an indication of demand
There are 4 core groupings of KPIs in customer acquisition
The number of eyeballs a particular ad campaign generates and who they are
Time on site, number of page views, depth and bounce/exit rate
Behaviour
Awareness
Outcome
Macro and micro conversions
The number of clicks a particular ad campaign generates
Engagement
Traditional marketing turnaround
Planning
Executing
Analyzing
3 months
Daily
Online marketing turnaround
BUILD
OPTIMISE IMPLEMENT
vs.
3 months
3 months
Offline campaigns cast a wider net
Traditionally have fewer objective
tools to measure returns
segmented to who and when
groups are targeted
KPIs more focusses on awareness
rather than the affects of
awareness
One central message to all
BRAND MESSAGE
Online campaigns can be highly
targeted to each person resulting
in lower cost per relevant target
Targeted messages increase effect
KPIs are further in the conversion
funnel
Targeted ‘personalised’ ads
Data allows for hyper targeted ads
Trial and error is inexpensive – fail fast, learn fast!
Offline / Without data Vague idea about the effect of untraceable marketing efforts
Online / With data Trackable measure on relevant KPIs
Efficiency is the relationship between input and output. With data, the definition of marketing efficiency has changed
In marketing terms
“the value of having a well known brand”
In financial terms (with data)
The current value of future purchases
Re-thinking brand equity
Imagine if you knew exactly which offline ads worked and how they triggered customers to buy
Google, Facebook, e-mails, etc Successful conversion (KPI) Website
Attracting visitors
Conversion TO the site
(ie. Visitors, CTR)
Converting visitors
Conversion ON the site
(ie. Conversions, CR)
Data uncovers the paths and reactions that offline
marketers have dreamt of for decades
CPX
Paid Search Ads
Facebook Ads
Affiliate Marketing
Display Ads
Across channels and sub-channels there are variations in efficiency
CPX
Number of customers
As conversions increase, the incremental cost to acquire one additional conversion rises too
Budgeted spend
Margin1
Margin2
CPX
Paid Search Ads
Facebook Ads
Affiliate Marketing
Display Ads
Only some sub-channels will be effective enough. Thinking that one channel is always more effective than another is wrong
Margin
Visitors may interact a number of times before placing an order. Understanding this is key to effective spending
So
urc
e
Interaction 1
Billboard
Interaction 2
TV
Interaction 3
Magazine
Interaction 4
Radio
In the offline world
So
urc
e
Interaction 1
Banner
Interaction 2
FB Ad
Interaction 3
Direct
Interaction 4
Paid Search
In the online world
Understanding the click chain allows the marketer to engage in the most cost efficient way
A few examples of data insights
Double targeting • YouTube can mean anything
as a channel • Our Facebook friends also
liked Rihanna • Result: the best performing
display campaign
Moving the search bar • Doubling the number of
users using the search bar
• Significantly increased over-all conversion
Posts with 80 characters or less have 27 % higher engagement rates
Posting outside business hours increase engagement 20 %
Engaging customers through an advice while promoting products through a picture
Likes, comments and shares increase the number of people who will see the update in their Newsfeed
For the digital company: Profitability is not only a function of how efficient you are – it’s a choice depending on how much you want to grow
Revenue
- COGS
= Gross profit
- Administrative cost
- Sales Cost
- Marketing Cost
= Operating profit (EBITDA)
In the offline world
Revenue
- COGS
= Profit contribution 1
- All other non-marketing costs
= Profit contribution 2
- Marketing cost
= Profit contribution 3
(=EBITDA)
In the online world
Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com
Thank you to our sponsor & partners!
Gold Sponsor
Supported by
Organised by
Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com