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Meta: Measurement 360

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Measurement 360
An Advanced Way to Think About Measurement Strategy
Seismic Shifts in the Digital Landscape
Measurement 360: Measure Consumers Where They Are
Why Measurement 360 Is More Valu...
Over the past decade, digital advertising has
become a significant conduit for brands to reach
and connect with consumers ...
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Meta: Measurement 360

  1. 1. Measurement 360 An Advanced Way to Think About Measurement Strategy
  2. 2. Seismic Shifts in the Digital Landscape Measurement 360: Measure Consumers Where They Are Why Measurement 360 Is More Valuable in an Ever-Changing Advertising Landscape How To Implement Measurement 360 Conclusion 03 05 06 08 12 Measurement 360 | An Advanced Way to Think About Measurement Strategy Contents “An Advanced Way to Think About Measurement Strategy: Measurement 360” is based on discussions held from February to March 2022 between Deloitte marketing measurement leaders and leaders at Meta who have experience in marketing and media measurement across regions, sales and marketing strategies across industries, product marketing, partnership strategies and/or the advertising ecosystem.
  3. 3. Over the past decade, digital advertising has become a significant conduit for brands to reach and connect with consumers in innovative ways at scale. This momentum continues to build, driven by the ongoing transformation of how we live, work, and play and the explosive growth of e-commerce, streaming media consumption, and virtual working environments. The pandemic accelerated the digital purchasing trend, resulting in monumental increases in digital commerce as worldwide e-commerce revenue was forecasted to have grown 19% pre-and-post COVID-19, and this trend is predicted to continue across all sectors in the years to come.1 These changes brought shifting business strategies that include Seismic Shifts in the Digital Landscape more direct-to-consumer offerings, virtual demonstrations, product visualizations, and omnichannel communications. Consumers also shifted from socializing face-to-face to connecting virtually, such as tuning into creators’ live video game streams to using virtual reality to gather as avatars in the metaverse. While the world is emerging from the pandemic to more in-person connection, some of these trends will remain as consumers become accustomed to these innovative ways to stay in touch with friends and family. As a result of changes in consumer behavior, advertisers are adjusting the mix of media 3 Measurement 360 | An Advanced Way to Think About Measurement Strategy
  4. 4. channels and experimenting with platforms to better reach and engage their target audience. This exploration has bred uncertainty in measuring the convergence of these wholesale digital landscape changes. In many cases, advertisers have to reevaluate existing measurement strategies and quickly make decisions and investments in new tools to ensure they have visibility into performance across all media channels, made possible through data signals. However, data signal availability is entering a new chapter given the changes in consumers’ expectations of privacy. Historically, many advertisers approached measurement with the goal of a 1:1 view of consumer interactions across each ad unit and the ability to pull levers and optimize at a granular level. In this new environment, many of these data signals are no longer guaranteed. Meanwhile, consumers are increasingly expecting greater personalization and connected experiences in their interactions with brands, all while placing a high value on data privacy and security. The increase of global privacy regulations and restrictions the use of various forms of data have become common place, including the General Data Protection Regulation (European Union), California Privacy Rights Act (United States), and General Law for the Protection of Personal Data (Brazil) in recent years. Major digital platforms have been phasing out their support of third-party signals and are putting more control in the hands of the consumer. These decisions have ushered in a new era of signal loss where instead of data being collected and shared with limited transparency, consumers can now select whether or not they would like to be tracked, which use cases their data can be leveraged for, and opt out at any given time. Signal loss, a byproduct in the pursuit for greater consumer privacy, negatively impacts data availability and ultimately marketing measurement. Stemming from extensive shifts in consumer behavior and media strategy, as well as increasing trust concerns in advertising practices, brands now have a unique opportunity to transform the way they think about measurement strategy. Advertisers can consider adopting a more advanced, agile framework that better reflects these large-scale shifts in the digital landscape and provides a holistic understanding of campaign performance with a lens toward future-proof and privacy-safe methodologies. Today, marketing organizations that demonstrate high effectiveness in their marketing measurement approach based on a survey conducted by Deloitte are already investing more in marketing measurement and including more data types in their marketing performance measurement model.2 These brands will likely be better prepared to innovate and evolve in contrast to brands who are relying on historical approaches that risk being left behind. 4 Measurement 360 | An Advanced Way to Think About Measurement Strategy Historically, many advertisers approached measurement with the goal of a 1:1 view of consumer interactions across each ad unit and the ability to pull levers and optimize at a granular level. In this new environment, many of these data signals are no longer guaranteed.
  5. 5. As the media landscape continues to change, purchasing behaviors are becoming increasingly complex, but advertisers still need a holistic view of the consumer across their entire journey. The historical measurement strategy some advertisers still have in place may have overemphasized a small number of measurement tools that were once best-in-class but may not stand the test of time as marketing needs evolve and new metrics become available. A well-rounded, transparent measurement strategy can enable advertisers to better understand the consumer’s journey and make informed marketing decisions, especially through measuring incrementality and being able to monitor lift in desired outcomes through testing and experimentation. Measurement 360 is a framework built on these strategic goals and can scale to incorporate the comprehensive range of media channels in use today. It also bolsters accuracy and transparency by calibrating the measurement tools to the measurement need. Measurement 360 helps advertisers utilize multiple measurement solutions in a connected framework to track all components of a brand’s marketing strategy. Each measurement tool is intentionally selected to address a specific aspect of measurement, ultimately coming together to inform advertisers how successful the overall marketing strategy was toward driving marketing goals. Leveraging different measurement tools allows marketers to tailor which tool is used to best synthesize data and validate results against Measurement 360: Measure Consumers Where They Are a business objective to evaluate marketing decisions. The objective of a Measurement 360 framework is to employ the right measurement tool for the measurement needs at hand. For example, a brand campaign with a Measurement 360 framework in place measures performance through several angles. In addition to measuring media performance through media mix modeling (MMM), collecting first-party data from platforms, and using website analytics to measure traffic, conversion, and cost efficiency metrics, other tools are in place to understand the impact on secondary key performance indicators (KPIs). Brand lift studies are used to measure incrementality and gauge brand awareness lift in a controlled setting. Social listening gathers insights in real-time on how users are reacting to campaigns through owned and earned conversation to determine the sentiment toward a brand. Mobile measurement may give insight into app performance for the brand on UX changes. While some of these tools may have been separately utilized in the past, Measurement 360 links these methodologies under one framework to tell a more complete story through embracing multiple methods and views of performance. 5 Measurement 360 | An Advanced Way to Think About Measurement Strategy
  6. 6. 6 Measurement 360 uses multiple measurement methods to evaluate performance across the customer journey in a connected framework that gives marketers the flexibility to make iterative improvements to campaigns as well as inform long-term strategic decisions Measurement 360 Framework LESS INCREMENTAL MORE INCREMENTAL Modeling Which channels, platforms, and tactics should I invest in to maximize business drivers such as sales? Marketing mix modeling (MMM) Granular MMM Test & Learn Which messages, creatives, and audiences are driving incremental lift? Social Listening Digital/mobile analytics KPI/conversion tracking Trending How is my marketing performing in the short term and how can I optimize? Social Listening Digital/mobile analytics KPI/conversion tracking Brand trackers / customer surveys Measurement 360 | An Advanced Way to Think About Measurement Strategy
  7. 7. Digital Disruption Continues Consumers made a dramatic shift to e-commerce in response to the shutdowns of the COVID-19 pandemic, and online buying habits are expected to continue as global retail e-commerce sales are forecasted to grow 8% through 2024.3 In the post-pandemic era, only some businesses are coming back, and some are there to stay in the new normal. Some advertisers are focusing on areas within the sales funnel that are new to their company, requiring them to rethink their measurement approach now and into the future as they have a more full-funnel strategy. With some traditional brand advertisers seeking to engage more directly with customers, and some performance marketers pivoting to generate brand awareness and increase reach, the need for multiple tools and a holistic measurement framework to remain agile and efficient will likely be here to stay. More importantly, the silos that have remained in marketing organizations for too long need to be broken down, and “effectiveness” needs to be driven in a language that marketers from all backgrounds can understand. Signal Loss Is Prompting New Strategies Many digital advertisers have relied on third- party cookies to identify and track prospects and customers across the Internet. Now that many of Why Measurement 360 Is More Valuable in an Ever-Changing Advertising Landscape 7 Measurement 360 | An Advanced Way to Think About Measurement Strategy those cookies are being phased out, advertisers will need to seek alternative sources of data and new marketing practices to replace obsolete audience segmentation and targeting tactics. Data privacy and security will remain key concerns in marketing as digital transformation continues. Other innovations that protect consumer privacy are likely to emerge. It’s an opportunity for the digital advertising industry to have a digital transformation moment of its own and put safeguards in place to protect consumer data and comply with desires for privacy. Maintaining a
  8. 8. Measurement 360 framework can foster privacy- related conversations between advertisers and measurement partners. During the process of selecting the right tools to measure marketing performance of media channels, marketing objectives, and other key factors, advertisers should evaluate the ability of partners to adapt their solutions to signal loss and other related privacy regulations. Adjusting measurement strategiees to meet privacy standards is a process all advertisers are expected to undergo, and Measurement 360 is one facet of that process. Fragmentation In Measurement Persists Advertisers have long struggled with fragmentation as each channel or media partner offered its own measurement solution, making an apples-to-apples comparison practically impossible. Over 25% of surveyed brands with a highly effective marketing measurement strategy are already struggling with including social media, affiliate marketing, and influencer marketing in 8 25 their marketing attribution despite how popular these channels are in reaching consumers in this era of digital disruption.4 Without an overarching framework to translate into a comprehensive story of performance, advertisers can be left at a disadvantage, spending more time examining the individual discrepancies than they are arriving at actionable decision making. As the digital landscape continues to evolve and new tools enter the market, this fragmentation in measurement will likely continue. Measurement 360 | An Advanced Way to Think About Measurement Strategy of surveyed brands with a highly effective marketing measurement strategy are already struggling with including the following in their marketing attribution • social media • affiliate marketing • influencer marketing % OVER
  9. 9. How To Implement Measurement 360 1. Define objectives to gain alignment. 2. Review your current measurement framework. 3. Build more advanced analytics through collecting first-party data. 4. Experiment with different measurement methodologies. 5. Embrace a holistic test-and-learn approach to incorporate all new and existing marketing strategies. 6. Calibrate continuously with Measurement 360. 9 Measurement 360 | An Advanced Way to Think About Measurement Strategy
  10. 10. Ready to bring Measurement 360 to life in your organization? Here are several steps to help you gain greater insight into marketing performance in an agile, future-proof, privacy-safe way. How To Implement Measurement 360 Foundational to Measurement 360 is determining what to measure based on the importance to driv- ing business objectives. All marketing initiatives need to be essential pieces of the puzzle driving these overarching business objectives. Otherwise, they should be de-prioritized. Using Measurement 360, advertisers must start by first defining the objectives and purpose of each marketing task through objectives and key results (OKRs) and KPIs and reflect the overall program goals before any marketing activity takes place. It is also just as important to consider the consumer journey phase of each marketing activity as objectives will need to change based on the audience journey. A great example is defining the OKR of getting prior customers who have not made a purchase in the past 90 days to buy now vs. the overall KPI of cost per acquisition (CPA) across all customers. The first step in adopting Measurement 360 within an organization is to align with relevant teams and leadership what the OKRs and KPIs are at each phase of the consumer journey with the under- standing that these may shift over time. Advertis- ers who can consistently answer questions related to marketing performance by tracking OKRs and KPIs can instill a sense of trust in and understand- ing of measurement by other teams and leader- ship, supporting the long-term success of Measurement 360. 10 2. Review your current measurement framework. Compare KPIs and metrics against your marketing strategy and assess whether the overarching marketing goals are properly tracked across marketing channels by the measurement tools in place. Understanding where measurement gaps exist today will help shape future decisions about which tools to test and integrate into your Measurement 360 framework. Suppose there are significant gaps between KPIs being tracked and the marketing needs of the organization. In that case, an advertiser should determine whether a new measurement tool should be tested or if an existing tool can be harnessed to fill the gap. After taking inventory of the KPIs and measurement tools critical for tracking the success of your marketing strategy, incorporate them into your overarching Measurement 360 framework. As new tools are being integrated, the measurement framework should be updated to help ensure alignment across the organization of what defines success and maximizes ROI. 1. Define objectives to gain alignment. Measurement 360 | An Advanced Way to Think About Measurement Strategy
  11. 11. 3. Build more advanced analytics through collecting first- party data. 4. Experiment with different measurement methodologies. To future-proof strategy, advertisers who previously relied more on third-party data must lean into first-party data wherever possible and design new strategies and systems that enable privacy by design. This will require breaking down silos within organizations, such as tighter integration between IT and Marketing, to connect data collection to measurement and campaign activation. Advertisers can capture insights about their audiences and performance by collecting more first-party data, including the brand’s paid media performance data, and synthesizing it with second-party and third-party data. These data sources are critical for advanced measurement and media attribution solutions in the Measurement 360 framework. One way to gain more first-party customer data is by working with media partners to create a value proposition and offer users something in return for their information. Growing first-party data for customer relationship management (CRM) purposes can provide an ongoing opportunity to interact with consumers, such as through e-mail and SMS, and replace targeting based on third- party signals. As these newer means of reaching consumers are adopted, the Measurement 360 framework should incorporate these channels to ensure the content and messaging deliver results. When it comes to finding a measurement solution that works, there’s no one-size-fits-all. As a part of the need for ongoing education amid digital accel- eration and advertising ecosystem changes and in adopting a Measurement 360 framework, adver- tisers should be willing to explore and consider all methodologies to identify the ones that best fit their organization’s needs. During this exploration phase, advertisers will also need to do their due diligence to understand what capabilities these solutions and partners offer to address changes in the digital landscape and signal loss. They should also provide transparency into the modeling methodology so that advertisers can better un- derstand how these tools can be used long-term and complement one another in the Measurement 360 framework. One example of how advertisers can experiment with measurement methodologies while keeping in mind signal loss as a consideration is leaning into both MMM and granular MMM to replace more signal-based measurement methodologies. Highly effective marketers are already demon- strating this trend as 31% of those surveyed are more likely to rely on MMM than MTA alone.5 Advertisers who have not already adopted MMM have more opportunities to do so more nimbly than in the past through open-source options. An example of a solution currently in beta version that advertisers can consider incorporating into their Measurement 360 framework is Robyn, an automated MMM option from Meta. Advertisers should begin to move away from mea- surement attribution reliant on third-party data and instead consider incorporating granular MMM into their Measurement 360 approach. Granular Measurement 360 | An Advanced Way to Think About Measurement Strategy
  12. 12. MMM harnesses the power of artificial intelligence and machine learning with first-party data in a time series econometric model rather than lean- ing on third-party data for attribution modeling. Granular MMM can shed light on performance at a campaign and partner level without the privacy implications multi-touch attribution (MTA) may struggle with, and granular MMM can achieve this at a faster rate than MMM alone can provide. Although still valuable in the changing advertis- ing landscape, MMM focuses on understanding channel effectiveness but does not dive deep into why specific channels perform a certain way. MMM benefits from the more detailed and pre- dictive views that granular MMM can supplement for brands. Lastly, granular MMM can go beyond past measurement methodologies with granular scenario planning and predictive capabilities in a privacy-safe and agile environment. Best-in-class advertisers employ granular MMM models that refresh every 30-45 days and embrace this new, privacy-compliant view into measurement. During the experimental phase in reviewing whether partners meet marketing measurement needs, advertisers should ask partners what steps they are taking to meet privacy standards, how compliance is maintained over time, and how advertisers are alerted when privacy con- cerns, such as data breaches, arise. For advertis- ers keen on further prioritizing privacy in their measurement framework, privacy enhancing technologies (PETs) are another avenue to consid- er as these lessen the reliance on data collection and still offer next-gen measurement and per- sonalization capabilities. Advertisers can gain a competitive advantage by testing new measurement capabilities and beta tests with partners, infusing machine learning and artificial intelligence into reporting, and adding to their repository of best practices. To better pre- pare for the changes in the landscape, over 80% of advertisers surveyed are planning to invest in an identity spine to better understand first-party data, share data with partners for more accurate measurement, invest in intelligent data lakes or a customer data platform to centralize marketing data, or invest in data sharing clean rooms by 2023.6 Exploring these emerging capabilities may not provide an immediate benefit, but the quick- er an advertiser understands how they increase efficiencies, the sooner they can see a return on investment. Meanwhile, competitors may remain in the nascent experimentation phase. 5. Embrace a holistic test-and-learn approach to incorporate all new and existing marketing strategies. Measurement 360 | An Advanced Way to Think About Measurement Strategy of advertisers surveyed are planning to complete at least one of the following by 2023 • invest in an identity spine to better understand first-party data • share data with partners for more accurate measurement, • invest in intelligent data lakes or a customer data platform to centralize marketing data • invest in data sharing clean rooms A test-and-learn strategy enables advertisers to validate best practices presented by publishers and other partners and gain insight into incrementality. Advertisers from all stages of measurement maturity see the value in testing and determining incremental lift and do so across a range of methodologies. Advertisers
  13. 13. 13 6. Calibrate continuously with Measurement 360 Understanding how to take multiple data sourc- es and to synthesize them into an overall view of performance, though challenging, is critical to marketing success and fundamental to Mea- surement 360. A real-world example of this need is measuring incrementality and participating in a brand lift study with one partner to get deep learnings on the audience paired with a long- term brand health study to calibrate learnings across one another. Once in place, advertisers can calibrate on an ongoing basis using different measurement types to explain one another—and identify situations when they differ—resulting in a more accurate holistic view. That insight can lead to better decisions and much more efficient and effective marketing campaigns. can operationalize this strategy by setting aside an experimentation budget, then quickly leaning into holistic test-and-learn and experimenting with media and creative variations. An example of a test advertiser can explore is a “lights off” approach where an advertiser pauses spend with a platform for a period of time to understand the extent of the platform’s efficacy. Determining the winner of any test conducted is based on a KPI from the overall measurement framework, ensuring consistency in what is considered successful in marketing. Experimentation helps uncover what works best for the organization and helps continuously refine the marketing strategy to drive profitability, especially as companies are moving into a full-funnel marketing approach and using certain channels for the first time. Measurement 360 | An Advanced Way to Think About Measurement Strategy
  14. 14. Embracing Change Through Measurement 360 Change is a constant—and it’s a challenge advertisers must anticipate in today’s world. Consumers are relying on new digital avenues for commerce and leisure while expecting more personalization and privacy. Meanwhile, business strategies are shifting, media channels and marketing partners are evolving, and advertisers should adapt their measurement strategies to respond. A Measurement 360 framework answers that need, offering a holistic view of the customer journey with built-in flexibility and transparency. By incorporating various proven tools, platforms, and methodologies, advertisers can assess performance from every angle and assemble a more accurate composite. They can develop an approach that effectively tracks the success of the overall marketing strategy against established OKRs and KPIs. By applying advanced analytics, brands can gather insights from multiple data sources and make better- informed marketing decisions that optimize business outcomes. Conclusion Adopting a Measurement 360 framework prepares advertisers for the changing landscape and future-proofs their approach to measuring performance. It’s a holistic approach that enables the use of best-in-class measurement tools and methodologies for a given measurement need. 14 This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities(collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/aboutto learn more. Copyright © 2022 Deloitte Development LLC. All rights reserved. Measurement 360 | An Advanced Way to Think About Measurement Strategy
  15. 15. 1. “Impact of COVID Pandemic on eCommerce” by International Trade Administration, Oct 2021. 2. “Marketing measurement in a world of change” by Deloitte Digital (Quest Mindshare-fielded survey of 800 respondents who are 25-75 years of age in the United States and work at a B2C company or advertising agency with 1,000 or more employees and self-identified as senior manager level or above), March 25–April 25, 2022. 3. “eCommerce Sales & Size Forecast” by International Trade Administration, Oct 2021. 4. “Marketing measurement in a world of change” by Deloitte Digital. 5. “Marketing measurement in a world of change” by Deloitte Digital. 6. “Marketing measurement in a world of change” by Deloitte Digital. Endnotes

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