SlideShare ist ein Scribd-Unternehmen logo
1 von 65
after hyper growth from !
35 to 100 people across 4 offices !
Predictive Lifetime Value for
in just over a year…!
Performance Marketing at Scale
Masterclass Tour Dublin 2014

Predictive Lifetime Value
Thank you

Predictive Lifetime Value
Predictive Lifetime Value
240+ features in 2013

Predictive Lifetime Value
$45

$79

Kerry
$7 CPA

Diana
$5 CPA
Predictive Lifetime Value
Customers?
(every marketing team’s worst nightmare)

Predictive Lifetime Value
Kerry

Diana

6 Week Purchase Cycle
Predictive Lifetime Value
The marketing multiplier effect
• Direct marketing
• Email marketing
• Content marketing
• TV campaigns
• Social engagement
• Loyalty programs &
re-marketing
Predictive Lifetime Value
Media investment = lifetime value

Predictive Lifetime Value
Lifetime ROI vs. CPA – 6X higher ROI

Predictive Lifetime Value
Review of yesterday
• Think about lead gen
• Paid products on the rise
• 230M users
• 24M users in UK, 20M on mobile
• 6M users in Netherlands, 4.8 on mobile
• Ad accuracy norm is 27%, 91% on FB
• 33% of people find product via social, 50% from search
• 300M on G+, 540M on Google products
• 2.4B global internet users
• 5x more expensive to acquire customers than retain
• 23% of Euro marketers sole focus is targeting the right audience

Predictive Lifetime Value
Looking for performance
at scale.

Predictive Lifetime Value
Predictive Lifetime Value
State of
Facebook.

Predictive Lifetime Value
5.5M in 2005

Predictive Lifetime Value
Predictive Lifetime Value
We need to generate
$1M in handbag
sales by end of
quarter

Predictive Lifetime Value
Predictive Lifetime Value
Predictive Lifetime Value
100M During Primetime Every Night

Predictive Lifetime Value
Predictive Lifetime Value
$4M for 30 Seconds

Predictive Lifetime Value
Predictive Lifetime Value
Results?

Predictive Lifetime Value
2013 retail benchmark report.

Highlights:
- 2.5X Increase in CTR
- 36% Increase in ROI
- 45% increase in CPMs
- 3x more tracking mobile revenue
- 57% of desktop is News Feed

Predictive Lifetime Value
Brand case study
• 10X greater purchase rates
• 2X greater LTV vs. any other channel
• 50% greater LTV using lookalikes
• 12M members from FB
“We’re gaining higher LTV via FB than we are from anywhere else. Right now, FB is
our most effective marketing channel.” – Tom Beverly, Fab VP Marketing
“I won’t make a move on FB unless I speak with Nanigans. I consider them an
extension of my engineering team.” – Blake Chandlee, Facebook VP

Predictive Lifetime Value
Agency case study

$80k - $200k
Predictive Lifetime Value
Best way to approach
Facebook?

Predictive Lifetime Value
Predictive Lifetime Value
Goals? Market Size? Expectations?

Predictive Lifetime Value
Creative
Targeting
Optimization

Predictive Lifetime Value
Predictive Lifetime Value
Predictive Lifetime Value
Predictive Lifetime Value
Nothing else: Self
identifiable and frictionless
ads

Predictive Lifetime Value
Aesthetics (interest)
Language (consideration)
Relevancy (decision)

Predictive Lifetime Value
Aesthetics
(interest)

Over a googol targeting combinations

250%
Predictive Lifetime Value
Have fun

- Disruptive
- “Attention”
- Self identification

Predictive Lifetime Value
Language
(consideration)

Over a googol targeting combinations

75%
Predictive Lifetime Value
Relevance
(decision)

Over a googol targeting combinations

40%
Predictive Lifetime Value
Creative
Targeting
Optimization

Predictive Lifetime Value
How many targeting
combinations are there
on Facebook?

Predictive Lifetime Value
10,000,000,000
000,000,000,000,000
000,000,000,000,000
000,000,000,000,000
000,000,000,000,000
000,000,000,000,000
000,000,000,000,000

Over a googol targeting
combinations on Facebook

Predictive Lifetime Value
Unprecedented targeting
Demographics

Affinities

Social

•
•
•
•

• Likes
• Interests
• Conversations

• Relationship status
• Education level,
college, major
• Employer, position

Device

Behavior

CRM

• Type
• OS version
• Wi-fi connectivity

• Actions taken with
sites and apps
• Offline purchase
behavior

• CRM…

Age
Gender
Language
Location

Predictive Lifetime Value
CRM targeting
CRM
Database

FB Profile
Match

Targetable
Audience

james@gmail.com
laura@gmail.com
jennie@gmail.com
alex@gmail.com
scott@gmail.com

Predictive Lifetime Value
Interest targeting scales campaign
Impressions vs. Purchase Rate by Targeting Type
8,000,000,000

35.00%

7,000,000,000

30.00%

6,000,000,000

25.00%

5,000,000,000

20.00%

4,000,000,000
15.00%

3,000,000,000

10.00%

2,000,000,000
1,000,000,000

5.00%

0

0.00%

None

Partner
Lookalike
Categories

Broad

Custom
Interest
Audiences Targeting

FBX

Purchase Rate
Impressions

Predictive Lifetime Value
Creative
Targeting
Optimization (60% of employees)

Predictive Lifetime Value
Maturity curves
Affinity modeling
Cohort analysis

Predictive Lifetime Value
Early ROI signals via maturity curves
250%

200%

ROI

150%

100%

50%

0%
0

10

20

30

40

50

60

70

80

90

Hours from Click

Predictive Lifetime Value
Expand to lookalikes via affinity
modeling
High affinity with
core customers

Low affinity with
core customers
Expand into the
highest quality
segments

Predictive Lifetime Value
Track cohorts – lifetime behavior

Predictive Lifetime Value
Track cohorts – identify opportunity
Time Period

ROI Increase

Black Friday vs. prior Friday

+ 36%

London vs. Paris

+ 24%

35-44 age demo vs. 45-54

+ 9%

Cyber Monday vs. prior Monday

+ 54%

Re-targeting implementation

+ 28%

Predictive Lifetime Value
Go big – Scale with confidence

Predictive Lifetime Value
Remarket
39% more customers. 89% increase in revenue per customer

Predictive Lifetime Value
Automation – RTB, programmatically
bid, enhance and refresh
Save time with
automated
targeting, creative
testing, and
conversion-based
algorithms

Predictive Lifetime Value
That’s all there is to it…
Closing points

Predictive Lifetime Value
State of digital advertising
• Digital 25% of marketing
• Paid search 24%; at point of diminishing return
• Display represents 41%

•

290B impressions on thousands of sites; 54% not visible

• Social less than 15%
• Mobile less than 15%

Predictive Lifetime Value
Social & mobile

Predictive Lifetime Value
Why Aren’t We More
Excited About Digital
Advertising?

Predictive Lifetime Value
Predictive Lifetime Value
Technology is not
Technology.

Predictive Lifetime Value
More is not
More.

Predictive Lifetime Value
Managed service deflates
Value.

Predictive Lifetime Value
Predictive lifetime value
for performance
marketing at scale.

Predictive Lifetime Value
slagen@nanigans.com
Additional case studies on nanigans.com
• Interest targeting scales delivery 3000%
• Pixeling reduces cost per purchase by 8x
• 4x ROI with dynamic creative
• 197% higher ROI w/FBX News Feed
• 89% sales increase using FBX
• 55% sales increase with photo posts
• 12x member acquisition
• 235k fans in 3 days
• 136% ROI increase in 4 days
Predictive Lifetime Value

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