Weitere ähnliche Inhalte Ähnlich wie Measuring your Marketing Effectiveness for Budget setting public (20) Mehr von Paul Laughlin (20) Measuring your Marketing Effectiveness for Budget setting public1. Paul Laughlin, Managing Director, Laughlin Consultancy
@LaughlinPaul
Actionable Budget
Marketing Strategy
#MSMS2015
© Laughlin Consultancy Ltd, not to be used without permission.
4. Our digital goldrush
❖ How many Twitter Followers?
❖ How many Facebook Fans/Likes?
❖ Has your video ‘gone viral’ on YouTube?
❖ How many downloads of your latest app?
❖ How many site/blog visits?
❖ How many people saw your commercial?
❖ Are we being recommended?
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5. What a business should measure
❖ Turnover is vanity…
❖
. . . Profit is sanity
❖ Return On Investment
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9. ROME
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ROME = ( Δ∆Revenue – Δ∆Costs) / Δ∆Marketing Spend
From “Marketing Payback” Robert Shaw & David Merrick:
10. Two types of Marketing
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• Brand building
• Awareness & Consideration
• Maintaining Share of Voice
• Social can be both (from LinkedIn ads to broadcast YouTube)
ATL
BTL
• Targeted communications
• Personalised & timed
• Driving action, often to buy
11. Econometrics for ATL
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• Statistical technique(s) to help assess which of many possible
factors are key drivers of sales results, combine them in a
quantitative model and then use to predict the future
• Business input
needed on factors
• Establish Base
• Allow for ad-stock
• Evaluate ‘halo
effects’
12. Experimental Method for BTL
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Response'
Data'
(all'channels)'
Contact'
History'
F2F/Service'
Call'Centre'
Website'
Outbound'
eMail/DM'
Social'
STEP'1'
Data$Gathering$
STEP'2'
Matching$Back$ Response'
Contact'
History'
STEP'3'
Considering$
rela5onship$
and$other$
drivers$
Brand$
Rela5onship$
Learning$from$
Econometrics$
Marketing attribution includes
considering multi-media attribution &
multi-channel view of value
Targeted$$
+$
Contacted$
Untargeted$
+$
Contacted$
Targeted$$
+$Not$
Contacted$
Untargeted$
+$Not$
Contacted$
14. Marketing Attribution
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Incremental
Modelled
Financial
Reporting
Market
Position
Media
Tracking
15. Budget Allocation step 1
❖ Annual Marketing budget
setting often done by:
❖ functional unit allocation
❖ share of revenue allocation
❖ share of voice allocation
© Laughlin Consultancy Ltd, not to be used without permission.
❖ More important to ‘rightsize’ the budget
❖ Optimising ROME not qualitative metrics
16. Budget Allocation step 2
❖ Optimal allocation across:
❖ Products/Markets
❖ Brands
❖ Purchase Funnel
© Laughlin Consultancy Ltd, not to be used without permission.
❖ Compare ROME contributions of each ‘cube’
❖ Consider evidence for media interdependencies
18. Diageo Marketing Measurement
Impact on the Consumer
Low High
ROI(5year)
100%
-100%
Brand A Brand B Brand C
TV Print Digital TV Print Digital TV Print Digital
GB ————— DOWN
Ireland UP
Spain
France
Portugal UP NEW NEW
Greece
Australia
South Africa
Mexico DOWN UP
Proven Effective Not yet proven
Judged Effective Unsatisfactory (ineffective)
1. Dogs and Stars chart
2. Advertising
effectiveness by brand
19. Credibility requires Accountability
❖ Use the language of profit
❖ Use ROME with Finance
❖ Converge attribution evidence
❖ Rigorous budget allocation
© Laughlin Consultancy Ltd, not to be used without permission.