RETURN ON MARKETING INVESTMENT

JUNE 2012

A BIT ABOUT ME

MEDIA PLANNER DIGITAL MEDIA

STRATEGYADVERTISING

My objectives Get you to rethink the value and

process of marketing and how you look at the measurement of marketing inputs .

Consider getting into the habit of measurement .

Persuade you …that marketers are not guesstimators and fluke artists

TO AGREE ON ROI , WE MUST FIRST AGREE ON HOW MARKETING WORKS .

HOW DOES MARKETING CONVERT TO A SALE?

MARKETING IS ABOUT IDENTIFYING NEEDS AND SERVING THOSE NEEDS AT A PROFIT

NEEDS

FUNCTIONAL

EMOTIONAL

EMOTIONAL NEEDS

FRIENDSHIP

RANK AND IDENTIFY MOST IMPORTANT DRIVERS IN A CATEGORY OR CONSUMER GROUP

GREAT

BEER T

ASTE

AFFORDABLE

BEING T

ANZANIAN

RELAXES

AFT

ER W

ORK

PRID

E IN

COUNTR

Y

THIR

ST Q

UENCHIN

G

AVAILABLE

MAKES Y

OU BUZZ

BRINGS

ME TO

GETHER

WIT

H FRIE

NDS 0

10

20

30

40

50

60

70

80

90

QUANTIFY EACH OPPORTUNITY IN CONSUMPTION OR PURCHASE

VOLUME/BUSINESS OPPORTUNITY PER BUSINESS /CONSUMPTION DRIVER.

Execute VS each variable –Example Variable Execution Measure Reward

Affordable Price promotion Small packs

New users New frequency of use

10,000 Cases

Being Tanzanian Miss TZTaifa Stars Advertising

Post sponsorship research Post ad research

100,000 Cases

Relaxes After work Advertising Product placement

Tracking research 15,000 Cases

Thirst quenching Advertising Merchandising

Tracking research 100,000 Cases

Availability Weighted distribution @ + 70% at all key seasons

Distribution research

200,000 Cases

Brings me closer to friends

AdvertisingMerchandising

Post ad research Placement in social places

20,000 Cases

Desired attribut

es

Our brand

attributes

Marketing Mix Modelling

What is MMM XBased on historical data ,

companies are able to establish how each of the important variables affect business growth .

These models measure combinations of these variables and can attribute sales to how these variables work together.

  J F M A M J J A S O N D

SALES50,00

05000

01000

04500

02500

02500

03500

05600

06500

03500

02000

04000

0

                         

AD SOV 50% 50% 20% 10% 10% 10% 20% 40% 70% 50% 10% 10%

                         

WEIGHTED DISTRIBUTION 70% 70% 60% 40% 20% 20% 50% 60% 60% 50% 30% 60%

                         

INDEX OF SOV TO COMPETITION 1 1 1 1 1 1 1 0.5 0.5 0.3 0.4 0.7

                         

INDEX OF DISTRIBUTION TO COMPETITION 0.5 0.5 0.6 1 0.7 0.3 0.7 1 1 0.6 0.3 0.2

                         

VARIABLES AND CO RELATION

ROI MEASURES

Return on objectives What is the cost vs benefits

attributed towards achieving an objective.◦Sampling ◦Awareness◦Trial

ROMI This measure attempts to

quantify the amount of additional revenue attributable to marketing efforts .

Incremental revenues attributable to marketing in Tshs * Contribution margin % - Marketing cost .

If you spend 100,000 and gain 500,000 in additional sales and you make an average of 60% margin then your ROMI is 60% x 500,000 = 300,000

Media ROI Establish your market Establish how many of them you

can reach on media without being wasteful.

Track message delivery .Track ROI.

Barriers to measurement Attitude of the business to

negative information.Cost of objective measures .Structural issues within the

business –Data collection not a defined area of work for any department .

Management culture of the business

Who is responsible for marketing measurement processes within your business ?

US Association of National Advertisers Poll

Informal grass roots efforts ; 24%

Marketing department ; 31%

Cross Functional Mgt ; 20%

Marketing and Finance only ;

17%

US companies

Key issues ◦Lack of alignment between

marketing and finance on ROI◦Lack of alignment of ROI goals with

company goals and strategies.◦Over half have no written ROI goals .

Getting started

Getting started Attitude – Test and learn

Start with realistic and available information .

Encourage admission of errors and encourage non repeat .

Scale and add on new measures.

Online Media planning Setting up your campaign objectives? Like all campaigns, those that use

online need to be clear and tangible. (SMART)

A SIMPLE awareness objective could read – To raise awareness of our product – We aim to reach 100,000 of our target audience with a message introducing our new product in the first 2 weeks after launch

The decision Funnel

Target Sales /Engagements

How many consumers do I want to engage

00s

Target Clicks

What number of consumers must come to my website

000s

Target Impressions

What number of consumers must see my online ads

000,000s

ROMI on Ads on a Baby and Mother`s Fair 2009Media director –Frank Maina

Case study

Digital media spans categories and types

Online

Mobile

Digital Outdoor

Tools to measure digital media ROI are more immediate and diverse The technology platforms have

measurement in built .

Ease of data interpretation

Accountability

Case study A moms event in Kenya

2010Objectives

Grow awareness for the 2010 fair in Nairobi

Optimise communication across all media at least cost

Leverage on PR services to communicate credibility and connect with moms.

Provide mothers with a reason to attend the fair by providing them with useful information

Seed the campaign to facilitate word of mouth communication in the target group.

Media SummaryPost buy –All women 24-34 Nairobi

TV:-

Reach 85%

AVF 3.1

Coverage 442,850

Print:-

Reach 17%

AVF 1

Coverage 88’570

Radio:-

Reach 8%

AVF 1.5

Coverage 41,680

Online:-

Impressions 8,849,023

Clicks 10,912

Click through Ratio 0.123

Street Banners (Traffic Counts not available)

Jogoo Road

Gigiri

Nyayo

Consolata shrines

Ngong RD Uchumi hyper

1,075,679

280,000

spend savings

MEDIA BUDGET SPEND AND SAVINGS

623,600

200,000.00174,979

80,405

163,000

5000

114,100

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

tv spend tv saving onlinespend

onlinesaving

streetbannerspend

streetbannersaving

print spend print saving

MEDIA

KE

NYA

N S

HIL

ING

S B

EFO

RE

TAX

ES

Lower savings as compared to last year because of exclusion of Radio and minimal print deployment.. TV offered lower discounts

Banner click through was optimised so as to remain within budget limits

BABY BANDA 2010 FACEBOOK STATS

644

1008

1363

1,606 1637

1890 1916 1932 19552020 2058

881

543

937 976

1179 1213 1225 12491321

1380

740

1129

1414

1812 1864

2269 2299 2308 23312401 2428

0 0 0 32

233 233321 362

429543 599

0 0 089

482

1462

17521826

2098

24822580

0 0 0 56

421

0 0 0 0 0 00 0 0 11 16 0 0 0 0 0 00 0 0 0 0 16 38 45 60 102 1160 0 0 0 0

421

721797

1080

1580

1751

-500

0

500

1000

1500

2000

2500

3000

SE 20 SE23 SE 27 OC 1 OC 3 OC 6 OC 7 OC 12 OC13 OC 15 OC 16

DATE

CU

MU

LA

TIV

E C

LIC

KS

are u a dad baby mun Nutrition Pregnant baby shower maternity show

need preg advise pregnancy advise 2 family fun day love ur self

MEDIA SPOT AND RATINGS

1 1 1

64 3 3

5 53 3

1 1

25

42.99

9

71.4

12

2 2

67.19

44

2

68.4

12.3

25

9

3

14

6

12

12

2

-10

0

10

20

30

40

50

60

70

80

fri sat sun mon tue wed thu fri sat sun mon tue wed thu fri sat sun

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

DAY OF THE MONTH

SP

OT

S A

ND

RA

TIN

GS

TV SPOTS TV RATINGS RADIO SPOTS RADIO RATINGS PRINT SPOTS PRINT RATINGS

Media schedule compliance was at 95% with KTN rescheduling spots that were missed to later date with acceptable ratings.

PR enhanced the schedule through News items and print coverage that boosted the ratings of the media Schedule by approximately 30% of core target

ATTENDANCE

RTA, 4%

First Time, 78%

Repeat, 18%

N=2129 respondents

Aprox 5% of the Questionnaires were repeated and therefore counted only once

BABY BABNDA PREGNANCY AND BABY FAIR YEAR ON YEAR AWARENESS

39%

5% 6%

12%

25%

8%

0%

5%

38%

13%

8%9%

18%

10%

0%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TV RAD PRINT WEB PEOPLE RD BAN OTHER POSTER

20010 2009

Despite addition 3 spots on TV we have only 1% increase in awareness through TV

Increase in online performance is as a result of face book content updates, newsletter broadcasts.

Increase in people (WOM)may also include the viral nature of news letter references, face book articles forwards.

Loss of awareness through Roadside Banners with increased sites may be due to clutter at banner areas

Online still remains the best return on investment at a conversion to budget ratio of 1.3 ie 16% budget investment giving 12% return.

Print effectiveness was greatly aided by pr vs cost

People, TV and online yields 75% awareness on media

People increased by 7% from last year by virtue of News letter, and facebook sharing of among facebookers

Online grew by 4% as a result of enhanced banner rotation to address demographics and psychographic.

TV remained largely the same at 1% growth despite additional spot adverts

MEDIA EXPOSURE

TV, 39%

RADIO, 5%

PRINT, 6%WEB, 12%

PEOPLE, 25%

BANNERS, 8%

POSTER, 5%

ONLINE, 16%TV, 58%

STREET BANNERS, 15%

PRINT, 11%

Spend budget proportions

FACEBOOK BABY BANDA PREGNANCY FAIR 2010

24%

14%

6%

2%

13%

18%

24%

19%

13%

5%

1%

16%

24%

22%

0%

5%

10%

15%

20%

25%

Are you a dad baby Nutrition ever has babyshower

family fun day love yourself meternity beautypageant

pregnant

BASE = 8,849,023 IMP 10,912 Clicks

%

impressions Clicks

0.099

0.109

0.121

0.083

0.151

0.1600.116

Unknown, 2%

Male, 29%

Female, 69%

baby shower

EVER HAD A BABY SHOWER DEMOGRAPHICS (599 CLICKS)

23%

38%

5%

1% 1% 1%

12%13%

4%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

18-24 25-34 35-44 45-54 55-64 65-100

AGE BANDS

%

Female Male

LOVE YOURSELF BANNER CLICK DEMOGRAPHICS (1751)

19%

32%

3%

1% 1% 1%

12%

20%

4%

1% 1% 1%

0%

5%

10%

15%

20%

25%

30%

35%

18-24 25-34 35-44 45-54 55-64 65-100

Female Male

unknown, 4%

female, 57%male, 39%

MATERNITY BEAUTY PAGEANT DEMOGRAPHICS (2580)

25%

36%

4%

2% 1% 2%

8%

12%

3%

1% 0% 1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

18-24 25-34 35-44 45-54 55-64 65-100

Female Male Unknown, 6%

Male, 25%

Female, 69%

ARE YOU A DAD? BANNER CLICK DEMOGRAPHICS (2058)

16%

22%

3%

0% 0%2%

13%

30%

7%

1% 1%1%

0%

5%

10%

15%

20%

25%

30%

35%

18-24 25-34 35-44 45-54 55-64 65-100

Female Male Unknown, 5%

Male, 52%

Female, 43%

ARE YOU PREGNANT BANNER CLICK DEMOGRAPHICS (2428)

20%

31%

5%

1% 1% 1%

12%

17%

4%

1%0%

1%

0%

5%

10%

15%

20%

25%

30%

35%

18-24 25-34 35-44 45-54 55-64 65-100

Female Male

Male, 35%

Female, 59%

Unknown, 6%

BABY AND MUM NUTRITION CLICK DEMOGRAPHICS (1380)

19%

45%

5%

2% 1%2%

6%

11%

2%0% 0% 0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

18-24 25-34 35-44 45-54 55-64 65-100

Female Male

Unknown , 5%

Male, 21%

Female, 74%

TOTAL NEWS PERFORMANCE 96%

23%

19%

4%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

delivered opened clicked forwarded forwarded & opened

delivered news letters opened news letters Number of times opened clicked links forwarded news letters forwarded & openWEEK 1 (822) 809 185 255 28 20 6WEEK 2 (905) 817 166 240 32 3 2WEEK 3 (920) 905 227 320 48 2 1

Baby Banda News Letter

There were approximately 10 complaints out of 571 newsletter opened.

Aprox 40% of newsletters opened, were opened twice. Showing that the content was engaging.

19% of the news letters opened supplied extra info through links that were clicked on

39% of the news letters that were forwarded, between recipients were opened

learning's TV:-

Additional 3 spots yielded 1% increase in awareness in comparison to last year’s schedule. Therefore need to maintain tight ROI on spot buying.PR:- Pr yielded coverage equivalent to 30% of exposure on TV

radio and Print at competitive rates (not Solus), and may be an avenue to explore in raising the profile of the fair.

ROAD BANNERS:- Despite three extra sites, banner awareness fell by 2% from

last year, indicating that traffic may be substantially lower towards the mid of the month rather than the end of the month.

Time may be saved buy separating printing works from banner hosting solution providers, when dealing with small providers.

Online:- Online contribution to awareness improved by 4%( with

improved our face book page likes, 300%) because of relevant useful content updates, longer online advertising, and newsletter broadcasts.