Find our how to make your advertising accountable. David Beaton, Senior Partner & CEO of Custometrics leads this instructive session that addresses what measurement sources are available to advertisers in the digital space. Share an analysts’ perspective on the future of measurement and revenues from TV advertising? How can ad networks e-mail engines and campaign management systems connect? Can data be used to drive a dynamic participatory storytelling process!

1. Analogue Dollars
Vs.
Digital Pennies
A Presentation to
nextMEDIA
Nov 19, 2008

2. An Introduction to Custometrics
Ph.D. level, marketing analytics; statistical modeling and
optimization
High-impact performance management technology
North American brands, B2C, B2C; wide range of industries
The Technology
Ad-CatalystTM
1:1 OptimizationTM
Multi-channel evaluation and optimization
Tackles hard-to-measure mass channels along with direct and
retail channels
Marketing communication measured along with other
influencers: price, promotion, product introductions, etc.
The Track Record
10-90% improvements in marketing communication impacts
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3. Measurement in Digital Channels
Controllable
Intermediate Target
Influencers
Outcomes Outcomes
Web site design
SEO Cost-per-click Changes to:
Paid Search
Email design
# Page views Total Sales
Other Channels
# impressions Online sales
Demography ROI
Uncontrollable
___
Influencers
Click thru rates
Cust Sat
Competition
Unique visitors
Economy
Brand Equity
Conversion rates
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4. Drivers of Paid Search Performance
(Part 1)
Keyword type & selection
Generic vs brand
Budget caps
Total budget
Allocation by search engine
Copy
Landing page design
Web site performance
Seasonality
Market strengths and weaknesses
Brand buzz; relative strength
Offers
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5. Paid Search Performance Analysis
Short term vs holistic?
Progression
Profitable Not Profitable
Brand vs Profitable Brand-Specific KW 1
Last Word Attribution
KW's KW 2
Generic? KW 3
KW 4
Not
Profitable KW 5
KW 6 KW 15
KW 7 KW 16
Cost vs net KW 8 KW 17
KW 9 KW 18
cash flow?
KW 10
KW 11
KW 12
KW 13
KW 14
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6. Drivers of Paid Search Performance
(Part 2)
Keyword type & selection
Generic vs brand
Budget caps
Total budget
Allocation by search engine
Copy
Landing page design
Web site performance
Seasonality
Market strengths and weaknesses
Brand buzz; relative strength
Offers
Other channels!
Spending, timing, content, explicit or implicit linkages…
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nextMEDIA Conference Nov 2008 www.custometrics.com

7. The (near) future of measurement
Integrative
Multi-channel
Halo vs cannibalization effects
Holistic
Baseline vs incremental
Bottom line-oriented
ROI, profitability, volume
Predictive
Proactively manage risk
Rank reliability
Optimized
Best allocation across available options
Simulate variation
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8. The Lightning Round
(apologies to Jim Cramer)
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9. Can online advertising ever match the
revenues from TV advertising?
Online TV
The challenger The champion
8-15% of spend 35-50% of spend
Rapid increase Growth challenges
Very measureable (at Not so measureable
least short term effects)
…but not as scalable …but the work-horse for
many advertising plans
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nextMEDIA Conference Nov 2008 www.custometrics.com

10. How can ad networks, e-mail engines and
campaign management systems connect?
Multiple channels
Different measures-
of-success
Different models of
consumer
engagement
How to manage this
complexity?
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11. Knowledge-Intensive Marketing:
A Channel-Based Approach to ROI Management
DM
TV 0
10100
TM
SF
11001010
Radio 01011001101
11100101100101
10100110001000110
Print 00100010011100101
01011001000101
11011000110
Direct Mail 00111001
11010
10
Internet
E-Mail WEB
Convert Data using Models to deliver
-the right message
-about the right product
Acquisition Channels, Listening to the Customer
-in the right channel
Optimized Through Data.
-at the right time
…
To get the right result.
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nextMEDIA Conference Nov 2008 www.custometrics.com

12. Optimization: Balancing Channel Use
Channels
Web Paid
Original Plan FSI Mag Web Display Print Radio TV
Search
Jan $ - $ - $ 5.83 $ 69.97 $ 75.76 $ 37.20 $ 2,806.12
Feb $ - $ - $ 161.70 $ 82.74 $ 53.93 $ 122.64 $ 7,106.51
Mar $ - $ 816.32 $ 350.64 $ 107.26 $ 47.90 $ 97.53 $ 6,700.31
Apr $ - $ 783.66 $ 124.17 $ 86.10 $ 101.01 $ 49.80 $ 4,447.65
May $ - $ - $ 134.26 $ 96.41 $ 61.54 $ 1.52 $ 3,220.13
Jun $ - $ - $ 36.00 $ 69.60 $ 70.32 $ 29.49 $ 171.87
Jul $ - $ - $ 32.77 $ 61.23 $ 164.11 $ 65.50 $ 161.36
Aug $ 48.87 $ - $ 34.44 $ 54.81 $ 51.27 $ 57.20 $ 64.14
Sep $ - $ - $ 9.45 $ 40.11 $ 181.71 $ 55.98 $ 357.03
Oct $ - $ - $ 6.23 $ 35.65 $ 114.98 $ 117.92 $ 305.29
Nov $ - $ - $ 6.03 $ 35.31 $ 77.31 $ 16.77 $ 119.64
Dec $ - $ - $ 6.23 $ 31.53 $ 78.28 $ 173.72 $ 28.15
annual $ 48.87 $ 1,599.98 $ 907.75 $ 770.71 $ 1,078.11 $ 825.27 $ 25,488.19
Channels
Optimized Web Paid
FSI Mag Web Display Print Radio TV
Plan Search
Jan 0.00$ 0.00$ 5.83$ 69.97$ 0.00$ 0.00$ -319.12$
Feb 0.00$ 0.00$ 161.70$ 82.74$ 44.07$ 0.00$ -1052.51$
Mar 0.00$ 0.00$ 350.64$ 107.26$ 73.11$ 29.47$ -673.31$
Apr 0.00$ 0.00$ 124.17$ 86.10$ 101.99$ 0.00$ -769.65$
May 0.00$ 0.00$ 134.26$ 96.41$ 0.00$ 0.00$ -251.17$
Jun 0.00$ 327.00$ 36.00$ 69.60$ 0.00$ 0.00$ -13.41$
Jul 0.00$ 287.00$ 32.77$ 360.78$ 0.00$ 0.00$ -12.59$
Aug 0.00$ 0.00$ 34.44$ 54.81$ 0.00$ 15.81$ -5.00$
Sep 0.00$ 0.00$ 9.45$ 40.11$ 0.00$ 0.00$ -27.85$
Oct 0.00$ 187.00$ 6.23$ 35.65$ 0.00$ 0.00$ -23.81$
Nov 0.00$ 178.00$ 6.03$ 35.31$ 0.00$ 16.23$ -9.33$
Dec 0.00$ 0.00$ 6.23$ 31.53$ 0.00$ 30.28$ -2.20$
annual $ - $ 979.00 $ 907.75 $ 1,070.26 $ 219.17 $ 91.79 $ (3,159.94)
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nextMEDIA Conference Nov 2008 www.custometrics.com

13. Can data be used to drive a dynamic
participatory storytelling process?
Under Obama, Web Would Be the Way
Unprecedented Online Outreach Expected
By Shailagh Murray and Matthew Mosk
Washington Post Staff Writers
Monday, November 10, 2008; Page A02
CHICAGO -- Armed with millions of e-mail addresses and a political operation that harnessed
the Internet like no campaign before it, Barack Obama will enter the White House with the
opportunity to create the first truly quot;wiredquot; presidency.
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14. Contact Information
David Beaton
Senior Partner & CEO
Custometrics
1 Valleywood Drive, #2
Markham, Ontario
L3R 5L9
905-479-4181
dbeaton@custometrics.com
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