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CONFIDENTIAL MATERIAL Marketing Transformation in the Digital Era March 9, 2017 Angela Wang, Partner and Managing Director, The Boston Consulting Group

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CONFIDENTIAL MATERIAL

Marketing Transformation in the Digital Era

March 9, 2017

Angela Wang, Partner and Managing Director, The Boston Consulting Group

1

Transforming digital marketing capabilities in the new era

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 2

CONFERENCE SHARING

Digital trends fundamentally change approach to marketing Omni-channel consumer journeys

40% Looked for inspiration online

Explosion of available data to target customers and prospects

Acceleration toward "real-time" to collect, activate data

Personalization is the "new normal"

53% Compared choices online

34% Sought advice online

Prepared online for offline purchase

> 90%

Customers beginning to expect it in their digital interactions

< 0.5% Of this data is analyzed and used

Of the world's data has been created in the last two years

38%

~ 1 000 Computers used to answer single Google search query

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 3

CONFERENCE SHARING

Male - Age 30

Cosmetics lover – Teacher Pink- Iphone 6s

Teenager Bouygues - Nokia Lumia 250

Sébastienn

Movie lover - Student SFR 4G - Samsung Galaxy S4

Male - Manchester Woman - Age 40

Woman – Salsa Dancer

Sushi

Male - Gamer

Relevant content, right audience, across its digital journey

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 4

CONFERENCE SHARING

To adapt, marketers need to shift away from legacy approach

Limited availability and usage

of data – relying on intuitions

Richness of behavioral consumer

data allowing constant feedback

loop on winning strategies

Limited number of messages, for

one broad audience, across few

channels

Targeted and personalized

communication across 100s of

touchpoints, on and offline

Few and simple measurement

frameworks (e.g., GRP for TV)

Multiplicity of measurements,

much more precise

Standardized practices, allowing

significant outsourcing –

especially for media

Renewed strategic value in

Media, requiring new skills and

tighter control over execution

Legacy approaches decline… …creating New Digital Marketing

capabilities

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 5

CONFERENCE SHARING

Digital marketing requires analytics and data expertise...

140721-Targeting Effectiveness-BMW-SC-v3.pptx 22

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1st Party: More recent visitors to site show higher click and

view-through engagement, though at reduced scale

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.00 2.00 4.00 6.00

Remarket >7days (Floodlight)

Remarket <6hrs (Floodlight)

Remarket <2days (Floodlight)

CTR %

£ CPC

Remarket <7days (Floodlight)

0.00%

5.00%

10.00%

15.00%

0.00 0.05 0.10 0.15 0.20 0.25

Remarket >7days (Floodlight)

Remarket <7days (Floodlight)

Remarket <6hrs (Floodlight)

Remarket <2days (Floodlight)

VTR %

£ CPV

Click performance View-through performance

Combined3a Detailed analysis of techniques: 1st party

Most effective time to retarget users is

immediately after they interact with brand

140721-Targeting Effectiveness-BMW-SC-v3.pptx 25

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Contextual: Channels a good source of clicks at competitive

CPC, but CPV lags behind average

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0 5 10 15 20

£ CPC

Keywords

CTR %

Auto Channels

Best Performing Sites

Click performance View-through performance

0.00%

0.10%

0.20%

0.30%

0.40%

0.00 2.00 4.00 6.00 8.00

Auto Channels

Keywords

Best Performing Sites

VTR %

£ CPV

Combined3d Detailed analysis of techniques: Contextual

Av. CPV (combined

scenarios): £1.20)

Av. CPC (combined

scenarios): £8.16

140721-Targeting Effectiveness-BMW-SC-v3.pptx 28

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New sources: Search to display remarketing a valuable new

source of users who click and view-through

0.00

0.02

0.04

0.06

0.08

0.10

30.0010.005.000.00

Search - Generic

Lookalikes

CTR %

£ CPC

YouTube WatchedAnyVid/Subscribed

YouTube Campaigns

Search - Model

0.00 0.50 1.00 1.50 2.00 2.50

0.1

0.2

0.6

0.0

0.7

VTR %

£ CPV

YouTube WatchedAnyVid/Subscribed

YouTube Campaigns

Search - Model

Search - Generic

Lookalikes

YouTube also offers competitive click performance –

potential for client to build size of YouTube audience

Click performance View-through performance

Combined3f Detailed analysis of techniques: New sources

Limited recent material

on YouTube channel ‒

only "Ultimate Driver"

video with significant

number of views in

month prior to study

140721-Targeting Effectiveness-BMW-SC-v3.pptx 14

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Campaign leveraged most control techniques, with Search

remarketing and limited YouTube in the test scenario

2 Study structure & approach

YouTube

Search-to-display

GAP

Custom audiences

KCT

Lookalikes

3rd Party

PMP / site specific

1st party (traditional)

Categories

Sce

nar

ios

1 &

2S

cen

ario

2

✓✓✓✓✓

✗✗✗✗✗

✓✓✓✓✓

✓✓✓✗✗

Previously used? Used in study? Comments

No suitable u-variables built

into website

Layering ✗ ✓Some new layering

techniques included in test

Techniques

Search-to-display remarketing

included

Co

ntr

ol t

ech

niq

ues

Test

tech

niq

ues

Channels (now defunct) used in

order to match past campaigns

Remarketing lists combined to

give comparison by recency

of user engagement

140721-Targeting Effectiveness-BMW-SC-v3.pptx 23

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3rd party: Affinity Segments performed better than most other

techniques for both clicks and views, and at good scale

0.00%

0.02%

0.04%

0.06%

0.00 10.00 20.00 30.00

CTR %

£ CPC

Affinity Segments Lookalikes

0.00%

0.10%

0.20%

0.30%

0.40%

0.00 0.50 1.00 1.50

VTR %

£ CPV

Affinity Segments

Lookalikes

Click performance View-through performance

Combined3b Detailed analysis of techniques: 3rd party

Google Affinity Segments key ingredient in future

campaigns to boost scale whilst retaining performance

Also drove most

digital brochure

downloads in Sc. 2c

Scale 16x larger

than avg. of all other

techniques

Av. CPV (combined

scenarios): £1.20)

Av. CPC (combined

scenarios): £8.16

Lookalikes

significantly weaker

performer than

Affinity audiences

140721-Targeting Effectiveness-BMW-SC-v3.pptx 35

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Frequency: Just 2% of users saw 12+ ads, but these users

generated 20% of clicks, 16% view-throughs, 3% conversions

50%

0% # ads seen2%1%1%1%1%2%3%6%5%9%

19%

52%

50%

0%

7%

46%

10% 4% 5% 4% 3% 2% 2% 1% 1%7% 5% 1%

50%

0% # ads seen3%1%2%2%2%3%

9%7%5%9%

23%35%

50%

0%1%5%10%

2%2%3%4%4%5%7%8%11%15%22%

80% users see

3 ads or less

All users

Users who clicked

Users who viewed-

through

Users who converted(traditional conversions)

1 2 3 4 5 6 7 8 9 10 11 12+

% of users

% of users

% of users

% of users

4b Additional drivers of performance: frequency All users

Just 2% users see

12 or more ads...

# ads seen

20 50 100

1 2 3 4 5 6 7 8 9 10 11 12- 21- 51-

...but 13% users

who clicked see

12 ads or more...

# ads seen

20 50 100

1 2 3 4 5 6 7 8 9 10 11 12- 21- 51-

20

1 2 3 4 5 6 7 8 9 10 11 12-

...16% users who

view-through see

12 ads or more

...3% users who

converted see 12

ads or more

140721-Targeting Effectiveness-BMW-SC-v3.pptx 29

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Best of each tactic: 1st party remarketing best performer but

but at limited scale

0.00%

0.10%

0.20%

0.30%

0.00 2.00 4.00 6.00 8.00

CTR %

£ CPC

Remarket <6hrs (Floodlight)

PMP Telegraph

PMP Telegraph + Affinity Segments

Affinity Segments

Search - Model

Best Performing Sites

Click performance View-through performance

0.00%

5.00%

10.00%

15.00%

0.00 2.00 4.00 6.00 8.00

Search - Generic

Affinity Segments

PMP Guardian

£ CPV

Keywords +

Affinity Segments

Remarket <6hrs (Floodlight)

VTR %

Keywords

Best Performing Sites

Scale and performance can be driven by mix of website

and search remarketing, Affinity Segments, and Telegraph

Combined3g Detailed analysis of techniques: Best in class

Layered3rd party PMPContextual1st party New sourcesSize of bubble = # of impressions

3rd best CPC but

worst CPV

Remarket < 6hrs has strongest

performance in driving users to

visit BMW website

140721-Targeting Effectiveness-BMW-SC-v3.pptx 31

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Optimisation: Campaign line-items and mix were optimised in

3 phases to maximize overall performance

0

5,000,000

10,000,000

15,000,000

17117 219 1064

Impressions

2214 16128 24 2518 291915 2320 26

June 2 – June 30

132 2753 28 30

Scenario 1

Scenario 2

Both scenarios

Conduct changes to

line-item mix and

ensure pacing on target

Ensure all line

items

operational

Optimization

31

Implement line-item

optimisation based on

metric correlation analysis

2

4a Additional drivers of performance: optimisation

140721-Targeting Effectiveness-BMW-SC-v3.pptx 39

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Bid price: CPC did not improve with more expensive inventoryLowest CPC occurred for inventory < £2.40 CPM

1.0

2.5

2.0

1.5

0.05%0.5

0.0 0.00%

0.15%

0.10%

0.20%

0.25%

£ CPM

£8.00+

0.2

0.24%

£7.20-

£8.00

0.1

0.15%

£6.40-

£7.20

0.1

0.13%

£5.60-

£6.40

0.1

0.11%

£4.80-

£5.60

0.2

0.07%

£4.00-

£4.80

0.4

0.07%

£3.20-

£4.00

0.5

0.06%

£1.60-

£2.40

1.5

0.05%

£0.80-

£1.60

2.2

0.03%

£0.00-

£0.80

1.2

0.02%

# of impressions (millions) % CTR

0.05%

0.6

£2.40-

£3.20

11.23

7.718.08

6.826.29

0

5

10

152.5

0.0

2.0

0.5

1.5

1.0

# of impressions (millions) £ CPC

£ CPM

£8.00+

0.2

£7.20-

£8.00

0.1

6.18

£6.40-

£7.20

0.1

£5.60-

£6.40

0.10.2

6.22

£4.00-

£4.80

0.4

£3.20-

£4.00

0.5

£1.60-

£2.40

1.5

3.86

£0.80-

£1.60

2.2

3.36

£0.00-

£0.80

1.2

3.08

£2.40-

£3.20

4.64

0.6

£4.80-

£5.60

Higher priced inventory appears

to drive a higher CTR...

...but not high enough to cover the

incremental cost of inventory

4c Additional drivers of performance: bid prices All users

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 6

CONFERENCE SHARING

...it also requires deep change management

Strategic alignment

Media planning / allocation

RFP, vendor engagement

Tagging set-up Ad-tech set-up Campaign Execution

Continuous learning

DSP

Ad server

GAP

Search

CRM

Brands/CMO co-led Digitas Led Brands owned / DSP-driven

Brands Led Tech-partners co-led DSP led

Campaign planning

Creative

development

Media plan (v1)

Media plan (v2)

Sanitized client example

Lack of specified media allocation

Rework in media plan

Inability to manage vendors

Challenge syncing creative

Lack of alignment on KPI strategy

Difficult to drive due to multiple owners

Mid-flight campaign changes

Inconsistent tagging

Lack of strategic planning

Inability to drive targeted RFPs

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 7

CONFERENCE SHARING

Six areas where Best-in-Class companies excel

Aligned Org Structure

A highly aligned and effective org structure that creates speed, agility and transparency in digital execution Org structure that promotes rapid

decision making and experimentation

Talented Partners /Agencies

Partners and agencies that utilize rigorous test, measure and learn methods to maximize ROAS

Agencies and partners that are aligned in driving the digital strategy

Holistic Data Strategy

Forward thinking data strategy that optimizes and leverages paid, owned, and earned data

Competitive advantage through unique customer insights

360 Touchpoints understanding

Clear understanding of all consumer touchpoints and their impact on consumer choices and ROI

Appropriate budget allocation across touchpoints, end-to-end view

Personalized Activation and best-in-class execution

Personalized touchpoints, optimized spend of each individual channel

Relevant and optimized messages and spend

Enabled teams

Digital-savvy Marketers – Digital & Data at the core of ways of working, not on the side

Revised ways of working, upskilled Marketers to enable execution

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 8

CONFERENCE SHARING

AIRLINE Rebalanced digital spend to optimize ROI across four countries

Recent programs drove significant increase in digital ROI

RETAIL

increase in ROI

Digital omni-channel deep dive Refined display, video, mobile, email

25%

FMGG

AUTOMOTIVE OEM

Company-wide digital marketing transformation

lower cost

50%

Global health check, digital pilots, and capability building

30% yield Increase

lower cost

40% 35% effectiveness gain value in-year

$200 M

FINANCE

WIRELESS

INFO. SERVICE

BIO-TECH

HOME SERVICES

AUTOMOTIVE OEM

Live campaign optimization utilizing advanced targeting

Comprehensive digital health check across email, search and display

Optimization of video and display through advanced techniques

Display optimization with emphasis on advanced geo-targeting

Optimization of campaigns through advanced top-of-funnel techniques

Setup and ran series programmatic pilot campaigns using advanced tactics

performance improvement 50%

yield Increase 60%

effectiveness gain 14%

decrease in CPA

40%

more web traffic 20%

waste reduction -15%

increase in engagement

40%

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 9

CONFERENCE SHARING

China digital landscape and digital marketing practices

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 10

CONFERENCE SHARING

0.6

1.6

0

1

2

3

China E-commerce GMV (Tn, USD)

+20%

+54%

2020 2015 2010

0.1

30% of private consumption growth

42% of private consumption growth

Other retail at 9%

Other retail at 6%

3 15 24

1 51 74

E-commerce as a % of private consumption

Mobile e-commerce as a % of total e-

commerce Source: iResearch, BCG analysis

42% of urban private consumption growth will go online

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 11

CONFERENCE SHARING

Multiple levels of digital penetration by category

11

1511

19 16 166

4

35

15 14

5 8 7 106 5

70%

80%

90%

0%

60%

100%

3

Fresh product

s

90

F&B

84

Apparel

54

74

Large applianc

e

75 76

Household sundries

% of household discretionary spend

Baby product

s

Skincare/ Cosmetics

70

Small applianc

e

offline

mobile

PC

Personal / home care

93

77

Source: BCG 2015 Omnichannel Consumer Research Survey, BCG CCCI, BCG analysis

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 12

CONFERENCE SHARING

Fragmented purchase pathway, mobile, EC, and social-driven

Shelf display

Top 3 e-tailers

Traditional media

In-store sales and

services

WeChat

Word of mouth

Other retailer and

brand sites

Other apps / sites

Price comparison, rating

sites

Social media

Product display and

usage

In-store sales and

services

EC promo

Word of mouth

Top 3 e-tailers

Other online shopping

activities

WeChat

Social media

Other mobile apps

Price comparison, rating sites

Order consolidation for free delivery

Other websites

Super market Shopping mall

Wet Market

Hyper market Other offline CVS Taobao/Tmall JD.com Other online Other apps Yihaodian

Cash / credit card digital payment of off-

line shopping

Coupon / VIP card

digital payment of on-

line shopping

credit card pay upon delivery

self take

off-line shipment on-line delivery on-line self take

None

coupon / points offline WOM online WOM on-line return

offline return

Online to online

Offline to offline

Mixed online offline

Online

Offline

Discovery Research Purchase Payment Delivery After-sales

Source: BCG 2015 Omnichannel Consumer Research Survey, BCG CCCI, BCG analysis

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 13

CONFERENCE SHARING

38% 40%

50% 44%

10%8%

4%

ROPO

Showrooming

Online solo

Store solo

China 2015

5%

China 2014

% of respondents

Worldwide average1

Online sales

ROPO

17%

46%

18%

41%

Online sales 12%

Online sales 15%

"Where have you bought the last item purchased? Where have you researched it?"

Note: 1. China excluded Source: BCG 2015 ad hoc study (10'000 respondents in 10 countries)

Even for luxury, consumers heavily rely on digital

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 14

CONFERENCE SHARING

No

Yes, occasionally

Yes, frequently1

72% of consumers use Social Media to interact with their favourite luxury brands

1. At least one Social Media used more than once per day Source: BCG 2016 ad hoc study (12,000 respondents in 10 countries)

% of respondents

Overall

Baby B. & Silver Gen. X

By generation

Millennials

By nationality

16%

57%

28%

64%56%

29%

14%16%

24%

23% 28%

47%

70%62%

51%

32%

12%16%

15%

17%

18% 23%34%

51%

14

72%

"Do you use Social Media to interact with luxury brands?"

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 15

CONFERENCE SHARING

WeChat a very high frequency interactive platform

1. Tencent QQ 2. Sina Weibo Source: BCG 2016 ad hoc study (12,000 respondents in 10 countries)

"How frequently and which Social Media do you use to interact with luxury brands or social media peers to share opinions?"

15

0%

10%

20%

30%

40%

50%

Frequency of usage

Users (% of respondents)

≥1 time per day

≤1 time per week

1)

2)

Focus on Content

Focus on Interaction/Service

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 16

CONFERENCE SHARING

Mature data mining and CRM service tools to

leverage, lack of data integration from

different platforms

DMP emerging, tagging consumers by multiple dimensions including social, buying, media

view, etc.

Off-line retailers still rely on

partnership to deliver to door

EC delivery strongly supported by leading logistics supplier

Mature EC delivery model

Cross-channel service covering online and off-

line

Payment as link with financial services

B&M retailer omni-channel solution immature

Social media

Mobile EC fast growing

Vertical players still sub-scale

Live broadcasting

Oligopoly in EC OTV

Digital players evolving to become digital ecosystems

Origination Conversion Transaction Delivery After-sales

Baidu Alibaba Tencent

Internet celebrity / KOL

1

2

3

4

6

7

8

9

10

11

15

16

12

13

14

Short video 5

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 17

CONFERENCE SHARING

Our Project Our Project What makes China a uniquely data rich environment? • More and richer data across all 1st, 2nd, and 3rd party sources

• Significant share of data is deterministic (device ID, publisher ID) – not cookies

Unmatched CRM assets:

• Most consumer facing advertisers have massive CRM data base ...

• ... enabled by ubiquitous data collection (e.g. sales rep obtaining data in-store)

• 70%+ of purchases can be captured by CRM

• Data elements (such as ID) activatable directly by publishers

1st: CRM data

B&M retailer data

• Openness from retailers (and other qualified data owners) to data sharing

E-commerce sales data

• Platforms monetize massive ecomm data

2nd: Retailer / EC data

Social Media: deterministic data on age, gender, education, socio-demo

• Leveraging broad base of ecosystem assets from social, OTV, Taxi, other lifestyle touchpoints to form custom data audiences

Data agencies: Readymade PIIs from Telecom to boost targeting

3rd: Very qualified

China is among the most data-rich environment in the world

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 18

CONFERENCE SHARING

Other walled gardens ...

No connectivity across the walled gardens Data never leaves the walled garden "Black box" approach to data, tracking Difficult to shape consumer journey across media 4-10 different ad-techs, vendors to manage for every campaign

!

!

!

Thematic limits

!

!

However, Chinese walled gardens limit the usage of data

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 19

CONFERENCE SHARING

Many core precision ad pillars are achievable today: • Digital segmentation • Data-driven targeting • Personalized creatives • Real-time optimization

To drive scalability & speed-to-impact, valuable to prioritize -- place key bets on 2-3 ecosystems as the most important "personalizable" environments • Learn and execute better than anyone else in the market

To achieve this vision, need 3 building blocks • Lay data & tech foundation needed to execute precision marketing • Design high value precision use-cases to help brands drive the business • Embed sustainable operating model to simplify operations; up-skill the organization

Precision marketing holds transformative promises in China

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 20

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Case study: Launched precision marketing in China

2016: PIONEER PRECISION MARKETING 2017: SCALE TO THE BUSINESS

TOTAL VISIBILITY OF BIG MEDIA'S DATA ASSET (e.g. who has qualified data; who does not)

EXPAND PRECISION MARKETING TO ALL DIGITAL CAMPAIGNS ACROSS BRANDS

DIRECT CONTROL OVER TARGETING (marketers hand selects data targets; not the publisher)

DEEP UPSKILLING OF DIGITAL & MARKETING MANAGERS

MORE PERSONALIZED COMMUNICATIONS (From generic creatives to differentiated messaging)

SOLIDIFY WAYS OF WORKING WITH MEDIA PARTNERS AS THE NEW NORM

REAL-TIME PERFORMANCE OPTIMIZATION (No more blind-spot; monitor & steer performance live)

SIMPLIFY INTERNAL OP. MODEL TO REDUCE COMPLEXITY

Worked closely with the ecosystem ...

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 21

CONFERENCE SHARING

Case study: What is different about precision marketing

FROM ... ... TO

Targeting context & demo (Age & gender centric)

Smarter targeting Targeting People while maintaining Reach (using purchase, social, search, demo signals)

Generic creatives (same for all)

More personalization

Personalized message & ad journey

"Black-box" ways of working with ecosystems

More transparency Planning led by brand team; real-time reporting during execution

Limited sharing More from retailers Data & insight sharing

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 22

CONFERENCE SHARING

Case study: Smart targeting

RESERVE AD SPACE BUY QUALIFIED AUDIENCES

Quality seeker

World traveller

Sporty outdoor lover

Display

Banners

Video window

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 23

CONFERENCE SHARING

Case study: More personalization

Quality seeker

World traveller

Sporty outdoor lover

Characteristics: Characteristics: Characteristics:

Hiking

Yoga

Nature

Running Functional

On the road

Flight

Multi-purpose

Handmade

Material

Details Classic

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 24

CONFERENCE SHARING

Case study: Real time user analysis to optimize tagging

Additional high performing audience tags identified: "Young mom"

Immediately added new tags and developed Mom creative to improve performance

0

100

200

300

0 20 40 60 80 100

Tag concentration (%)

Target effectiveness (TGI)1

Segment H

Segment B

Segment L

Segment E

Segment F

Quality seeker

Sporty

World traveller

Young mom

Segment N

Segment I

0.0

0.5

1.0

1.5

CTR(%)

Day 4 Day 3 Day 6 Day 2 Day 1 Day 5

Primarily Selected

Not selected

Added "Young mom" tag

Young mom

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 25

CONFERENCE SHARING

Case study: More relevant messages

MASS COMMUNICATION

MASS TARGETING, PERSONALIZED CREATIVES

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 26

CONFERENCE SHARING

Case study: Real-time tracking

Access to DSP for real time reports & optimization Reports by XXX on weekly basis

Impression by market 日期 排期编码 广告位类型 地域定向 频次控制 终端定向 曝光 UV

20160829 DMP人群包定向 移动前贴片 杭州市 3次/全周期 iPhone,aPhone 28060 14291

20160830 DMP人群包定向 移动前贴片 杭州市 3次/全周期 iPhone,aPhone 49240 26866

20160831 DMP人群包定向 移动前贴片 杭州市 3次/全周期 iPhone,aPhone 33363 20313

20160901 DMP人群包定向 移动前贴片 杭州市 3次/全周期 iPhone,aPhone 25828 15765

20160829 DMP人群包定向 移动前贴片 深圳市 3次/全周期 iPhone,aPhone 132803 63600

20160830 DMP人群包定向 移动前贴片 深圳市 3次/全周期 iPhone,aPhone 137794 73527

20160831 DMP人群包定向 移动前贴片 深圳市 3次/全周期 iPhone,aPhone 67418 38733

20160901 DMP人群包定向 移动前贴片 深圳市 3次/全周期 iPhone,aPhone 73570 43891

20160829 DMP人群包定向 PC前贴片 杭州市 1次/全周期 11656 11571

20160830 DMP人群包定向 PC前贴片 杭州市 1次/全周期 64164 63643

20160831 DMP人群包定向 PC前贴片 杭州市 1次/全周期 37499 37283

20160901 DMP人群包定向 PC前贴片 杭州市 1次/全周期 16838 16710

20160829 DMP人群包定向 PC前贴片 深圳市 1次/全周期 49879 49602

20160830 DMP人群包定向 PC前贴片 深圳市 1次/全周期 157748 156588

20160831 DMP人群包定向 PC前贴片 深圳市 1次/全周期 80395 79756

20160901 DMP人群包定向 PC前贴片 深圳市 1次/全周期 84232 83674

Impression by device

日期 排期编码 广告位类型 地域定向 内容定向 频次控制 终端定向 曝光 UV

20160831 移动前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 118734 70349

20160829 移动前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 113343 67195

20160901 移动前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 106513 67365

20160830 移动前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 113526 64597

20160829 移动前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 113299 56520

20160831 移动前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 83800 48209

20160901 移动前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 13453 9115

20160830 移动前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游3次/周 iPhone,aPhone 98052 52138

20160831 PC前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 103849 103505

20160829 PC前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 173756 173099

20160830 PC前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 178013 177573

20160901 PC前贴片 广州市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 69383 69225

20160831 PC前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 77340 77070

20160829 PC前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 88294 87888

20160901 PC前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 14841 14770

20160830 PC前贴片 南京市 电影;电视剧;综艺;娱乐;音乐;时尚;生活;母婴;旅游1次/周 87981 87643

常规OTV投放

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 27

CONFERENCE SHARING

Case study: Continuous consumer journey in ecosystem

If clicks

Landing page

If clicks

Landing page

If clicks

Landing page

Thematic video ad promoting perfume

(15')

A product banner recalling what she

saw

A video detailing the look that goes with the perfume

One month later if clicked

If completes video but

doesn't click

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 28

CONFERENCE SHARING

Case study: In soft launch, higher performance from precision marketing across metrics

OMG

Higher engagement & buy rate ...

xxX CTR xxX landing rate1 xxX Action rate2

xx X CTR xx X landing rate1 xx X Action rate2

xx X CTR xx x landing rate1

xx x Action rate3

....Lower cost of acquisition &

purchase

- xx% CPA improvement

- xx% CPA improvement - xx% CPA improvement

Cost lower due to the fact that we pay what we want in precision marketing, vs. mass "carpet bombing" approach in conventional digital buys

Precision buys vs. conventional digital

buys

1 2 3

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 29

CONFERENCE SHARING

Reach: Precision is able to deliver reach at scale

Total Internet User: 800 M

Conventional

xxx M

UV Reach

Precision

xxx M UV Reach

OMG xx M

Reach via precision buys

xx M

xx M

Despite slightly lower total reach, Precision approach

delivers high on-target reach at scale, as evident in the

higher engagement &

purchase ratios

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 30

CONFERENCE SHARING

Business results: structured match-market study

Group 3

Group 4:

Group 1

Group 2

'Control' city

Group 1 CITY CITY

Group 2 CITY CITY

Group 3 CITY CITY

Group 4 CITY CITY

'Test' city

Traditional marketing (TV+Print+Outdoors)

Direct OTV buys

Same as control

Add Precision OTV buys with xxx, & Social buys with

xxx

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 31

CONFERENCE SHARING

Business results: POS data show faster growth in precision marketing markets

Sales weighted growth comparison between Test & Control cities

XX%

Test

Control

Week1 week6 week12

Precision campaign launch

Sales growth velocity (Cumulative sales indexed to sales at launch of campaign)

Growth difference since

launch

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 32

CONFERENCE SHARING

Vision: Completely new ways of digital marketing

CRM

Who to target?

Where to target?

How to target?

Integrated Data Insights from data Targeting Landing & tracking

Land on EC for more traffic

Tracking entire consumer journey: impression conversion transaction

More data to capture

More insights from tracking & analysis

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 33

CONFERENCE SHARING

Process: 20 weeks to onboard stakeholders to "the new way"

Planning Setup Optimization ...

Target audience selection & sizing

Digital partner evaluation & selection

Consumer journey design

Overall program management of design, set-up, and measurement

Design of match market study

Finalizing pricing & booking

KPI & reporting cadence alignment

Soft-launch to de-risk

Site tagging setup

Tracking setup

Buying platform setup

Regular campaign performance review (led by partners using client issued standard reporting)

Post campaign learning (led by partner & agency)

– Match-market results (compiled by digital team)

Campaign execution

(the precision ad

way)

Process & tools

rolled out

Full launch Soft launch

Weekly performance report template

End of campaign learning compendium

Brief & reporting templates

Roles & responsibility recap

Digital marketing innovation - BCG presentation - 9Mar17-vs.pptx 34

CONFERENCE SHARING

Key Actions to Win: End-to-end Transformation of Marketing

Data acquisition

Insights & Segmentation

Messaging Activation Measurement

Create new role of Marketing in data acquisition

Through own assets (website, app, ads) and partnerships

Reinforce the A/B test mindset

Generate insights based on very granular data

Leverage billions of interactions with digital

assets - rather than focus groups

& surveys

Democratize the usage of data

Data & Analytics central to all

Marketers' job – need to build new

habits

Move to a "Content Factory" Producing

personalized content and storytelling

Create content based on Data – less intuitions

Real-time feedback loop from consumers

Develop a "Always-on" mindset

Optimize performance on an ongoing basis

Use micro-targeting across digital journey

Build richer set of KPIs and measurements