This document summarizes key points from a presentation on measuring marketing ROI, specifically for acquisition marketing. It discusses:
1) Defining marketing ROI as return (revenue earned) divided by investment (costs spent), with ROAS measuring return on ad spend specifically.
2) Explaining the "curve of marketing math success" as moving from basic metrics like clicks and impressions to measuring conversions and outcomes.
3) How LinkedIn measures marketing ROI "beyond the lead" by tracking metrics like inquiries, marketing qualified leads, bookings, opportunities, and traffic, as well as estimating long-term customer value and projected multi-year ROI.
1. B2B Marketing Math: Solving
for ROI
Keith Richey
Director, Marketing at LinkedIn
Marcus Andrews
Senior Product Marketing Manager,
HubSpot
2. Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
3. For the first time in the history of media you can
engage with the world’s professionals in one place
4. Achieve your goals from awareness to
engagement to new business
The most effective platform for marketers to
engage professionals
6. Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
9. ROASReturn on Ad Spend ROI
• Spend on paid media
+ (maybe)
• Creative cost
• Spend on paid media
• Creative cost
+
• Sales & marketing salary
cost
• Systems cost
• Incentive cost
• Etc . . .
‘Fully Loaded’
‘Fully Loaded’ ROI adds more investment categories. For
simplicity, most companies use ROAS to mean ROI.
10. The ROI calculation
Ad-sourced Revenue Ad spend ROIAd spend
Ad-sourced Revenue Ad spend ROI
Alternative: simplified version
12. Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
13. HubSpot
The Inbound Marketing Methodology
Inbound marketing is about using marketing to bring potential customers
to you, rather than having your marketing efforts fight for their attention.
14. The HubSpot Ads Add-On
It’s inbound, Amplified
1. Your Ads, Inside HubSpot
• LinkedIn Sponsored updates
• Google AdWords
• More on the way
2. Conversions over Clicks
• Close the loop on reporting by combining
HubSpot and Ad Network Data.
3. Get More from Inbound
• Drive more leads from your best
performing content and offers.
15. The Curve of Marketing Math Success
Move from clicks to conversions
16. The Curve of Marketing Math Success
Move from clicks to conversions
17. Putting the Math to Work
Move from clicks to conversions
Inbound
Campaign
and Goal
Build Ads Conversion
Funnel
Run the
Numbers
Measure
Success
Optimize
Start Here!
18. Putting the Math to Work
Move from clicks to conversions
Inbound
Campaign
and Goal
Build Ads Conversion
Funnel
Run the
Numbers
Measure
Success
Optimize
CPC/CTR
CPC/CTR
CVR
CVR
CPA
19. Ads and Inbound through HubSpot
EHS Insight Example
All results from ads after implement HubSpot ads and focusing on other key optimizations
EHS Insight increase ad conversions 90% with
HubSpot Ads Add-On
“Inbound and Paid campaigns absolutely must be in
harmony to maximize the value for us. HubSpot
Ads makes it much easier to keep an eye on both
and to correlate the results of campaigns across
channels. We can make better decisions in less
time.”
Gary McDonald
CEO, EHS
Insight
SMB - Software
Houston, TX
HubSpot customer for 12-months.
Have used the Ads Add-on for
4-months to optimize, search and
social ads inside HubSpot.
225%
More Visits
90%
More
Conversions
211%
More Contacts
70%
More MQLs
20. Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
21.
22. Our Marketing Goals
MQLs for sales team
Marketing
Qualified Leads
(MQLs)
BookingsTraffic
Bookings $ from new
customers
Quality traffic to our
properties
23. How we measure ‘beyond the lead’
Inquiries
(aka Leads)
Marketing
Qualified Leads
(MQLs)
BookingsOppsTraffic
24. Inquiries MQLs BookingsOppsTraffic
‘Last touch’
attribution
Individual inquiries tracked through to bookings $
Website Eloqua Salesforce
Systems enable measurement
25. Ad-sourced measures direct impact
on new business
Influenced
• Brand awareness
• Retention / upsell
• Pipeline acceleration
• Sales enablement
• Customer onboarding
• NPS
Sourced
• Field customers
• Self Serve
activations
26. Manage to ROI by channel, using cost per X as a
leading indicator to optimize more quickly
Inquiries MQLs BookingsOpps
Ad spend
Cost/Inquiry Cost/MQL ROICost/Opp
27. We track 1st year customer $ actuals for reporting, and use 1-3
yr projections for investment decisions
Ad-sourced
Customer
Qtr 1
revenue
Qtr 2
revenue
Qtr 3
revenue
Qtr 4
revenue
Qtr 5
revenue
Labeled as “Ad sourced” in each reporting period Not labeled as “Ad
sourced”
Optimizations and investment decisions are based on 1-3 yr profit projections
Mktg + Sales
Customer
Acquisition Cost
Projected 1-3 yr
Margin LTV
1-3 yr ROI
28. Reaching our goals
113% to plan for
MQLs in 2015
Marketing
Qualified Leads
(MQLs)
BookingsTraffic
30% of new biz
sourced by marketing
72% of visitors to our
site Manager+
30. Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
32. Sales Cycle
A prospect gives
names and contact
info
Lead Opportunity
Closed Won
Deal
Name
After the prospect
expresses real sales
interest
After successful
meetings with leads
who show intent to
buy
When a contract
has been signed
33. Three steps to calculating ROI
Calculate cost per Name by
channel
Calculate value per Name by
channel
Calculate ROI by channel
# of Names by
channel
Ad Spend
by channel
Name Conversion
rate by channel
Annual Contract
Value (ACV)
Value of Name Cost per Name
1
2
3
Names from LinkedIn
50% more valuable than
from AdWords
34. Sponsored Updates delivers 5X+ the ROI of AdWords
Channel ROI (Name value / Cost per Name)
LinkedIn Sponsored Updates 17.6
Native Ads 14.9
Google AdWords 3.1
35. Engaging the right professionals gets results
1 B2B Content Marketing, 2016 Benchmarks, Content Marketing Institute/MarketingProfs;
2 The State of B2B Digital Marketing, Fall 2015, Demandwave
Hinweis der Redaktion
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LinkedIn presents a truly unique opportunity for brands. It’s the first time in the history of media you can engage with the world’s professionals in one place. With LinkedIn, you’re targeting a quality audience in a professional context. And, you can engage them in a very meaningful way: by sharing valuable content through products tailored to how professionals engage. By doing so, you become part of your audience’s conversations and education on the platform.
We are the most effective platform for marketers to engage professionals.
Today we have clients across industry and around the world that trust LinkedIn to achieve their goals and grow their businesses.
At the core, we help them target the right professional audiences to Create awareness early in the purchase process, Engage audiences with content, Drive quality leads and acquire new customers.
So, LinkedIn is where by far the largest number of professionals gather to stay connected and informed, advance their career and work smarter. Over 433 million professionals are on LinkedIn. These are the decision makers, influencers, the leaders of today and tomorrow -- the people you want to target, all in one place.
On LinkedIn, we have <customize these stats to your audience>
61 million senior-level influencers
40 millions decision makers
10.7 million opinion leaders
6.8 million C-level execs
3 million MBA graduates
22.8M Mass Affluent
6.3M Small Business Owners
plus 1 customizable vertical-specific slides (e.g., 4.1 million IT decision makers)
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Background on HubSpot – how long we’ve been around, what we do.
Inbound marketing is about using marketing to bring potential customers to you, rather than having your marketing efforts fight for their attention. By creating content specifically designed to appeal to your dream customers, inbound attracts qualified prospects to your business and keeps them coming back for more.
Major Themes:
Content and distribution
Lifecycle based marketing
Personalization
Multi channel
All in one
Integration
Who am I and what do I do.
Ads add on and what we are doing with Ads.
This is the curve of advertising success … it shows that traditional ad campaigns, which are measured by clicks, are less effective than conversion focused campaigns.
By doing ads in an inbound way, we are allowing our customers to be CONVERSION focused. This allows for closed loop reporting on ad campaigns, which significantly increases their ability to optimize all ads for the highest ROI.
This approach is especially important for you, our agency partners, since quantifying ROI for your clients is critical.
This is the curve of advertising success … it shows that traditional ad campaigns, which are measured by clicks, are less effective than conversion focused campaigns.
By doing ads in an inbound way, we are allowing our customers to be CONVERSION focused. This allows for closed loop reporting on ad campaigns, which significantly increases their ability to optimize all ads for the highest ROI.
This approach is especially important for you, our agency partners, since quantifying ROI for your clients is critical.
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Let’s now talk about your objectives and how we can help. Once you’ve defined your goal, you’ll use a range of LinkedIn targeting options to reach the right people. On our platform, you’ll then engage them with valuable content, and a range of ad formats. And you’ll use our measurement tools to optimize your performance, which creates a virtuous cycle as you continue to optimize your Targeting & Engagement tactics, and ultimately performance.
Let’s now talk about your objectives and how we can help. Once you’ve defined your goal, you’ll use a range of LinkedIn targeting options to reach the right people. On our platform, you’ll then engage them with valuable content, and a range of ad formats. And you’ll use our measurement tools to optimize your performance, which creates a virtuous cycle as you continue to optimize your Targeting & Engagement tactics, and ultimately performance.
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Let’s now talk about your objectives and how we can help. Once you’ve defined your goal, you’ll use a range of LinkedIn targeting options to reach the right people. On our platform, you’ll then engage them with valuable content, and a range of ad formats. And you’ll use our measurement tools to optimize your performance, which creates a virtuous cycle as you continue to optimize your Targeting & Engagement tactics, and ultimately performance.
If you think about it, the people you’re looking to market to are just like you and me.
We’re online and on our favorite mobile devices all the time, looking for information to make big - and small - life decisions and important - and everyday - decisions at work.
But, we’re ultimately looking for the right destinations and online communities where we can get relevant information, guidance, or inspiration - and to feel connected.
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Brands are making an impact with LinkedIn. Here are just a few stats that talk to how we’re being used, and the impact.
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- LI is the #1 social media platform for content distribution -- 94% of the B2B marketers use LinkedIn to distribute content (B2B Content Marketing, 2016 Benchmarks, Content Marketing Institute/MarketingProfs)
- LI is the #1 social network for lead generation by a long shot: LinkedIn: 59%; Twitter 28%; FB: 24% (The State of B2B Digital Marketing, Fall 2015, Demandwave)
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