Presentation by Aurélie Pols at Superweek 2014 (Hungary). The objectives of the session are to provide a simple and practical approach to classic and reverse monetization and learn how to prioritize your opportunities within your company. 
 - What are the biggest obstacles companies face to be successful in Digital Analytics? 
 - Do you want to continue being a reporting monkey? 
- How to monetize? 
 - What if my website doesn´t sell? 
- What´s the value of a lead and a visit? 
- Monetizing different types of sites behaviors 
- Common roadblocks to monetizing behaviors 
 - and much more ;)

1. Monetize to Prioritize
January 2014 – Superweek 2014– René Dechamps Otamendi

2. Monetize to prioritize
Objectives of the session
Provide you a simple and practical
approach to:
• Learn classic & reverse monetization
• Prioritize your opportunities
• Be able to use it tomorrow in your
company

3. Before
we
start…
“
Web
Analy*cs
packages
are
sold
as
if
it’s
an
automa*c
coffee
maker.
In
fact,
it’s
more
like
buying
a
coffee
planta*on
You
can
s*ll
get
your
coffee
(eventually),
but
you’re
going
to
have
to
s*ck
your
hands
in
a
lot
of
more
manure
than
you
ever
knew.
Tom
Cunniff
(Yahoo
User
Group)

4. Data is the New Oil
Page

4

5. In
2006
Jim
Sterne
defined
the
‘ideal’
WA
team…

6. Stephen
Victor
&
Igor
Frank
Nipper
Henry
Dilbert
Vincent
Cole
Sigmund

7. Shane & Jason delivered a presentation about monetization at eMetrics years ago
Shane Atchison &
Jason Burby
@ShanePOSSIBLE
@JasonBurby
Antes:

8. What’s the biggest obstacle companies face to be
successful in Digital Analytics?

9. In 2007…
And today in many (most?) cases
Acting on the findings
“What is the most difficult aspect of analytics for your company?”
Pulling together the data
Forming the hypothesis
Developing the analytical models
Interpreting the results
24%
9%
12%
3%
Acting on the findings
53%
Source: Forrester Research

10. Do you want to continue to be a
reporting monkey?

11. What’s the best method to
overcome this obstacle?

12. Monetize to prioritize
Use monetization models
Definition:
Assigning monetary values to the
different behaviors to understand and
quantify the value of the digital channel.

13. Monetize to prioritize
How to monetize?
We need first to understand the business
processes of the digital property we’re
analyzing.
How and where do we earn money?

14. Monetize to prioritize
What if my website
dosen’t sell?
It can sell indirectly or help cost
reductions that we can also monetize
Examples:
• A lead generation website
• A Support site that reduces the Call
Center costs

15. Monetize to prioritize
Monetize a lead generation
website
What’s the value of a lead?
Number of average leads per month via web:
% converted into clients in 3 months:
Number of new clients in 3 months:
Average sale value:
Average margin:
Average profit per sale:
Value of a lead:
10.000
2,50%
250
2.000,00 €
60%
1.200,00 €
30,00 €

16. Monetize to prioritize
Monetize a lead generation
website
What’s the value of a visit?
Number'of'visits'per'month:
Average number of leads per month from site:
% converted into clients in 3 months:
Number of new clients in 3 months:
Average sale value:
Average margin:
Average profit per sale:
Value of a lead
Value of a visit
500.000
10.000
2,50%
250
2.000,00 €
60%
1.200,00 €
30,00 €
''''''''''''
0,60'€

17. Monetize to prioritize
Monetizing desired behaviors
Desired'behavior
1.'Leads'generated'(contact)
2.'Catalogue'request
3.'Sample'request
Monthly'impact
''''''300.000,00'€
''''''''70.000,00'€
''''''150.000,00'€
Anual'impact
'3.600.000,00'€
'''''
840.000,00'€
'1.800.000,00'€
1.#Leads#generated
Number'of'visits'per'month:
Average number of leads per month from site:
% converted into clients in 3 months:
Number of new clients in 3 months:
Average sale value:
Average margin:
Average profit per sale:
Value of a lead:
Value of a visit:
500.000
10.000
2,50%
250
2.000,00 €
60%
1.200,00 €
30,00 €
''''''''''''
0,60'€

18. Monetize to prioritize
We can Monetize different types
of site behaviors
• Lead generation
• eCommerce
• Customer service
• Branding
• Ad-Revenue Driven

19. Monetize to prioritize
Understanding delayed
conversions

20. Monetize to prioritize
Prioritizing opportunities
Monetizing site behaviors can help you:
•
•
•
•
Understand overall value of digital channel
Where to focus research & analysis efforts
Prioritize potential opportunities
Evaluate the true impact of changes

21. Monetize to prioritize
Monetize potential returns
PURCHASE FUNNEL
Category X Home
Last step completed
Conversion rate
Value of purchase
Classic monetization
120.428
9.177
7,62%
50,00 € (adjust € to see impact of opportunity)
Future conversion rate
7,62%
8,00%
8,25%
8,50%
8,75%
9,00%
9,25%
9,50%
9,75%
10,00%
10,25%
10,50%
10,75%
Orders
9.177
9.634
9.935
10.236
10.537
10.839
11.140
11.441
11.742
12.043
12.344
12.645
12.946
Incremental
orders
457
758
1.059
1.360
1.662
1.963
2.264
2.565
2.866
3.167
3.468
3.769
Monthly
incremental
End year impact
value
(July launch)
- €
- €
22.862,00 €
480.102,00 €
37.915,50 €
796.225,50 €
52.969,00 €
1.112.349,00 €
68.022,50 €
1.428.472,50 €
83.076,00 €
1.744.596,00 €
98.129,50 €
2.060.719,50 €
113.183,00 €
2.376.843,00 €
128.236,50 €
2.692.966,50 €
143.290,00 €
3.009.090,00 €
158.343,50 €
3.325.213,50 €
173.397,00 €
3.641.337,00 €
188.450,50 €
3.957.460,50 €
End year impact
(Sept Launch)
- €
137.172,00 €
227.493,00 €
317.814,00 €
408.135,00 €
498.456,00 €
588.777,00 €
679.098,00 €
769.419,00 €
859.740,00 €
950.061,00 €
1.040.382,00 €
1.130.703,00 €
Reverse monetization
Impact of three
months delay
- €
-342.930,00 €
-568.732,50 €
-794.535,00 €
-1.020.337,50 €
-1.246.140,00 €
-1.471.942,50 €
-1.697.745,00 €
-1.923.547,50 €
-2.149.350,00 €
-2.375.152,50 €
-2.600.955,00 €
-2.826.757,50 €

22. Monetize to prioritize
Monetize potential returns
PURCHASE FUNNEL
Category X Home
Last step completed
Conversion rate
Value of purchase
Future conversion rate
7,62%
8,00%
8,25%
8,50%
8,75%
9,00%
9,25%
9,50%
9,75%
10,00%
10,25%
10,50%
10,75%
120.428
9.177
7,62%
65,00 € (adjust € to see impact of opportunity)
Monthly
Incremental
incremental
End year impact
Orders
orders
value
(July launch)
9.177
- €
- €
9.634
457
29.720,60 €
624.132,60 €
9.935
758
49.290,15 €
1.035.093,15 €
10.236
1.059
68.859,70 €
1.446.053,70 €
10.537
1.360
88.429,25 €
1.857.014,25 €
10.839
1.662
107.998,80 €
2.267.974,80 €
11.140
1.963
127.568,35 €
2.678.935,35 €
11.441
2.264
147.137,90 €
3.089.895,90 €
11.742
2.565
166.707,45 €
3.500.856,45 €
12.043
2.866
186.277,00 €
3.911.817,00 €
12.344
3.167
205.846,55 €
4.322.777,55 €
12.645
3.468
225.416,10 €
4.733.738,10 €
12.946
3.769
244.985,65 €
5.144.698,65 €
End year impact
(Sept Launch)
- €
178.323,60 €
295.740,90 €
413.158,20 €
530.575,50 €
647.992,80 €
765.410,10 €
882.827,40 €
1.000.244,70 €
1.117.662,00 €
1.235.079,30 €
1.352.496,60 €
1.469.913,90 €
Impact of three
months delay
- €
-445.809,00 €
-739.352,25 €
-1.032.895,50 €
-1.326.438,75 €
-1.619.982,00 €
-1.913.525,25 €
-2.207.068,50 €
-2.500.611,75 €
-2.794.155,00 €
-3.087.698,25 €
-3.381.241,50 €
-3.674.784,75 €

23. Monetize to prioritize
Lead generation monetization
Visit-to-lead conversion
Monthly Site Visits
Monthly leads from site
Current visit-to-lead conversion rate
Value of lead
Future
Conversion Rate:
2,381%
2,50%
2,75%
3,00%
3,25%
3,50%
3,75%
4,00%
4,25%
4,50%
4,75%
5,00%
5,25%
5,50%
5,75%
6,00%
6,25%
Inquiries
500
525
578
630
683
735
788
840
893
945
998
1.050
1.103
1.155
1.208
1.260
1.313
21.000
500 (Contact, brochure, webinar, ...)
2,381%
€ 238,00 (adjust € value to see the impact)
Incremental
Inquiries
25
78
130
183
235
288
340
393
445
498
550
603
655
708
760
813
Lost Opportunity Lost Opportunity Monthly
Annual
Delaying Optimizaiton 3 Delaying Optimizaiton
Incremental Value Incremental Value
Months
6 Months
- €
- €
- €
- €
5.950,00 €
71.400,00 €
-17.850,00 €
-35.700,00 €
18.445,00 €
221.340,00 €
-55.335,00 €
-110.670,00 €
30.940,00 €
371.280,00 €
-92.820,00 €
-185.640,00 €
43.435,00 €
521.220,00 €
-130.305,00 €
-260.610,00 €
55.930,00 €
671.160,00 €
-167.790,00 €
-335.580,00 €
68.425,00 €
821.100,00 €
-205.275,00 €
-410.550,00 €
80.920,00 €
971.040,00 €
-242.760,00 €
-485.520,00 €
93.415,00 €
1.120.980,00 €
-280.245,00 €
-560.490,00 €
105.910,00 €
1.270.920,00 €
-317.730,00 €
-635.460,00 €
118.405,00 €
1.420.860,00 €
-355.215,00 €
-710.430,00 €
130.900,00 €
1.570.800,00 €
-392.700,00 €
-785.400,00 €
143.395,00 €
1.720.740,00 €
-430.185,00 €
-860.370,00 €
155.890,00 €
1.870.680,00 €
-467.670,00 €
-935.340,00 €
168.385,00 €
2.020.620,00 €
-505.155,00 €
-1.010.310,00 €
180.880,00 €
2.170.560,00 €
-542.640,00 €
-1.085.280,00 €
193.375,00 €
2.320.500,00 €
-580.125,00 €
-1.160.250,00 €

24. Monetize to prioritize
Understand impact of lift
Ad revenue supported site
Impact of increasing visits per person & page views per visit
Assumptions
5.234.000
14.132.000
26.144.200
2,70
1,85
174.688.000
5,25
€
Current Monthly Uniques
Current Monthly Visits
Current Monthly Page Views
Current Monthly Visits per Person
Current Page Views per Visit
Current Ad Impressions
Current Average CPM
10%
5%
10%
Lift in Uniques
Lift in Visits per Person
Lift in Page Views Per Person
Impact on Page Views
Current Page Views
Forecasted Page Views
26.144.200
33.216.206
27%
% Change
Additional Page Views
Impact on Ad Revenue Based on Current CPM
Current Impressions
Forecasted Impressions based on Increased PVs
Additional Impressions Generated/Available
Current CPM
Addl Potential Monthly Rev. Based on Avg CPM
Addl Potential Annual Rev. Based on Avg CPM
7.072.006
174.688.000
221.941.104
47.253.104
5,25
€
248.078,80 €
2.976.945,55 €

25. Monetize to prioritize
Prioritize opportunities
Potential lift through
optimization
Effort (int +
Ext)
12 months
revenue impact
12 months
ROI
Opportunity 1
45.000,00 €
3.570.693,75 €
23,80
Opportunity 2
150.000,00 €
10.002.447,00 €
20,00
Opportunity 3
40.000,00 €
1.177.605,00 €
8,83
Opportunity 4
65.000,00 €
3.131.183,25 €
14,45
300.000,00 €
17.881.929,00 €
17,88
Total potential impact

26. Monetize to prioritize
Prioritize opportunities
Average
forecast
future
conversion
estimate
Opportunity
Current
conversion
rate
Current
estimated
incremental
sales
Future
estimated
incremental
sales
Opportunity 1
0,28%
137
0,33%
160
23
156.400,00 €
1.876.800,00 €
50.000,00 €
37,54
Opportunity 2
1,12%
87
1,64%
127
40
272.000,00 €
3.264.000,00 €
75.000,00 €
43,52
Opportunity 3
1,35%
898
1,54%
1.024
126
856.560,64 €
10.278.727,68 €
200.000,00 €
51,39
Opportunity 4
0,29%
135
0,35%
162
27
183.600,00 €
2.203.200,00 €
100.000,00 €
22,03
Opportunity 5
0,29%
225
0,33%
255
30
204.000,00 €
2.448.000,00 €
50.000,00 €
48,96
Additional
sales
Estimated
monthly
potential
Estimated annual Estimated cost 12 months
potential
to optimize
ROI

27. Monetize to prioritize
Dynamic prioritization
Why prioritize at all?
Can you do it now?

28. Monetize to prioritize
Optimización y testing
Endless testing
possibilities…
Limited
time
- 20%
New
l
arriva
!
Buy Now
Free
shipping
Submit
…pricing, promotional offers,
headline copy, visual design,
customer segments, content copy,
colors, calls-to-action, buttons
styles, fonts, navigation, featured
products, registration, ad
placement...

29. Monetize to prioritize
A/B Testing

30. Monetize to prioritize
Evaluate the impact ofchanges
Launch date
Estimated
impact
(12months)
Iachieved impact
(12months)
Delta (%)
Cost
ROI
Opportunity*X October
**
1.876.800,00*€
***1.554.000,00*€
917% ****
50.000,00*€
*31,08
Opportunity*Y October
**
3.264.000,00*€
***3.549.000,00*€
9% ****
75.000,00*€
*47,32
Total **
5.140.800,00*€
***5.103.000,00*€
91% *125.000,00*€
*40,82

31. Monetize to prioritize
Common roadblocks
to monetizing behaviors
Uncertainty where to start
Lack of executive support
Full team buy in
Concern over being 100% perfect

32. Monetize to prioritize
Why monetization works?
Helps focus efforts on key areas rather than the entire
site.
Helps translate ideas/opportunities into real euro
values.
Can de used when looking at all visitors as well as
segmented.
Once you put numbers in front of people in euro terms,
they don’t want (can’t) to be the one to hold up or
ignore a 1M€opportunity.

33. Monetize to prioritize
Last tip
It is imperative you look at not only the behaviors that
benefit your company near term, but also how it
impacts you clients and prospects long-term.
Don’t risk alienating 80% of your site visitors for only a
nominal gain in conversion, it usually isn’t worth it…
Eg: emailing

34. Monetize to prioritize

35. Gracias
“The future belongs to those that
really ask good questions!”
Gracias
René
Dechamps
Otamendi
TwiUer:
@rdo
//
Email:
rene@MindYourGroup.com