The Roles of Analytics in Digital Marketing

© 2018 Leap Research. All rights reserved.
T.S. Lim
The Indonesian Statistical Analysis Conference (ISAC) 2018
Parahyangan Catholic University
Graduate School Building
30th Merdeka Street, Bandung, West Java, Indonesia
November 8, 2018

Source: https://industri.kontan.co.id/news/aqua-merambah-pasar-teh-kemasan-dengan-merek-caaya
Launched on March
7, 2018, Caaya was
the first ready-to-
drink tea brand with
an online official
store.
This brand from
Danone-AQUA was
available online at
Lazada and Shopee
during its initial
launch, in addition
to select prominent
supermarkets.

A print ad at Kompas
newspaper (October 12, 2018)
Questions:
1. How effective is this print
ad to drive sales?
2. How effective is this print
ad to drive sales at JD.id?

Approved July 2013 by the American Marketing Association Board of Directors. https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.

Select a
target
market
Discover
the needs
of the
target
market
Set a price
for the
product
Advertise
the product
to
consumers
Make the
product
available to
consumers
The 4Ps by Prof. Edmund Jerome McCarthy (1960). https://en.wikipedia.org/wiki/E._Jerome_McCarthy
Product Price Promotion Place

Today’s shoppers bounce back and forth at
their own speed in a multi-channel
marketplace. They switch devices to suit their
needs at any given moment. They search; go
off to look at reviews, ratings, styles and
prices; and then search again. They see ads
on TV and in newspapers and online. They
walk into local stores to look at products.
They talk to friends, over the back fence and
on social media. (ZMOT Handbook, 2012)Adapted from Edelman and Singer (2015)
Zero Moment of Truth

Accessed October 12, 2018. http://lexicon.ft.com/Term?term=digital-marketing
The marketing of products or services
using digital channels to reach consumers.
The key objective is to promote brands
through various forms of digital media.

Accessed October 12, 2018. http://lexicon.ft.com/Term?term=digital-marketing
Digital marketing extends beyond internet
marketing to include channels that do not
require the use of the internet. It includes
mobile phones (both SMS and MMS), social
media marketing, display advertising, search
engine marketing, and any other form of digital
media.

Source: https://www.emarketer.com/content/emarketer-total-media-ad-spending-worldwide-will-rise-7-4-in-2018
In 2018, digital media will
account for 43.5% of
investments, thanks to rising
global ecommerce spending and
shifting viewership from
traditional TV to digital channels.
By 2020, digital’s share of total
advertising will near 50%.
Digital channels will overtake
traditional mediums by 2021.

Better Segmentation
Can target a local audience based on location analytics
Can target a specific demographic profile
Better Measurability
Data and results are easily recorded and tracked
Several metrics can be calculated easily
Two-Way Conversation
Your audience can interact with you in real time
Can create a reputation for being easy to engage with
Real Time Results
You can get the data immediately
Can facilitate a faster decision
Icons made by Freepik from www.flaticon.com

Hartman, Kevin. n.d. “Digital Analytics for Marketing Professionals: Marketing Analytics in Theory.” Accessed September 2018. https://www.coursera.org/learn/marketing-analytics/home/info and Wilson (2017)
Search
Put brands where
consumers are
looking
Display
Intercept
consumers on
a journey
Video
Give brands the
opportunity to
engage
Social
Media
Connect brands
to consumers at
key moments
Email &
Messaging
Reach target
consumers in a
very personal way

Common Language in Marketing Project, 2016. Accessed October 12, 2018. http://marketing-dictionary.org/m/marketing-analytics/
Marketing analytics involves the
discovery and communication of
meaningful patterns in data from
metrics like traffic, leads, sales,
advertising, promotions, web activity,
social media, and any other relevant
marketing activity or financial data.

Marketing analytics can be defined by their use of
mathematical distributions, statistical sources, or
analytical techniques (e.g., regression) for their
construction. These analytical techniques may represent
the causal relationships among various conditions and
actions taken to achieve specific business results, and are
often used to inform future marketing actions.
Common Language in Marketing Project, 2016. Accessed October 12, 2018. http://marketing-dictionary.org/m/marketing-analytics/

Source: Hartman, Kevin. n.d. "Digital Analytics for Marketing Professionals: Marketing Analytics in Practice." Accessed September 2018. https://www.coursera.org/learn/digital-analytics/home/info.

Build
Awareness
Influence
Consideration
Improve Sales
Process
Improve Brand
Performance
Grow Loyalty
Source: Hartman, Kevin. n.d. "Digital Analytics for Marketing Professionals: Marketing Analytics in Practice." Accessed September 2018. https://www.coursera.org/learn/digital-analytics/home/info.
Do consumers recall and
recognize my brand?
Do my products satisfy
consumers’ needs?
Do my brands win at
places of purchase?
Do the experiences I deliver
fulfill customer expectations?
Do consumers advocate
for my brand?

Searchmetricsmeasure
paidcampaignefficiency
• Click-Through
Rate
• Macro
Conversion Rate
• Cost Per
Acquisition Displaymetricsmeasure
thechannel’seffectiveness
• Click-Through
Rate
• Macro
Conversion Rate
• Cost Per
Acquisition
• Events / Visit
Videometricsmustalign
withbusinessobjectives
• Video Views
• Play Through
Rate
• Engagement
Rate
Hartman, Kevin. n.d. “Digital Analytics for Marketing Professionals: Marketing Analytics in Theory.” Accessed September 2018. https://www.coursera.org/learn/marketing-analytics/home/info

Socialmetricsmeasurethe
program’seffectiveness
• Audience
Growth
• Amplification
Rate
• Applause Rate
• Micro
Conversion Rate Emailmetricsmeasure
thechannel’seffectiveness
• Delivery Rate
• Open Rate
• Click Rate
• Unsubscribe
Rate
• Spam Complaint
Rate
Hartman, Kevin. n.d. “Digital Analytics for Marketing Professionals: Marketing Analytics in Theory.” Accessed September 2018. https://www.coursera.org/learn/marketing-analytics/home/info and Wilson (2017)

Channels Metrics Definition
Search
Click-Through Rate
The average number of click-throughs per hundred ad impressions,
expressed as a percentage
Macro Conversion Rate Simply number of sales divided by the number of visitor sessions
Cost Per Acquisition The cost associated with acquiring a new customer
Display
Click-Through Rate
The average number of click-throughs per hundred ad impressions,
expressed as a percentage
Macro Conversion Rate Simply number of sales divided by the number of visitor sessions
Cost Per Acquisition The cost associated with acquiring a new customer
Events / Visit Average number of pre-defined actions completed during a session

Video
Video Views
Full-length (“complete”) and partial (“incomplete”) views of the posted
video
Play Through Rate
The number of viewers who watch the video to completion, expressed
as a percentage
Engagement Rate
The number of viewers who participate with the video by taking some
defined action (e.g., shared video, left a comment, “liked” or favorited,
etc.), expressed as a percentage
Social
Audience Growth
Increase in the number of people following or liking digital content over
time
Amplification Rate
Rate at which your followers take your content and share it through
their network
Applause Rate
Rate at which your followers attach special recognition to your post
(e.g., Likes, +1’s, Favorites, etc.)
Micro Conversion Rate
Number of predefined goals achieved divided by the number of visitor
sessions

Email
Delivery Rate
The percentage of people who actually received your email divided by
the total emails sent
Open Rate
The percentage of people who opened the email you sent divided by
the number of people who were delivered
Click Rate
The percentage of people who clicked on something in your email
divided by the number of people who were delivered
Unsubscribe Rate
The percentage of people in your subscriber list who unsubscribed from
your email list divided by the number of people in your list
SPAM Complaint Rate
The percentage of people in your subscriber list who clicked the SPAM
button on their email service provider divided by the number of people
in your list
Wilson (2017)

Adapted from https://www.kaushik.net/avinash/best-web-analytics-tools-quantitative-qualitative/ and Hartman, Kevin. n.d. “Digital Analytics for Marketing
Professionals: Marketing Analytics in Theory.” Accessed September 2018. https://www.coursera.org/learn/marketing-analytics/home/info
Clickstream Analysis
Analysis of the parts of the
screen a computer user clicks
on while web browsing or
using another software
application
Google Analytics
Yahoo! Web Analytics
Matomo
Feedburner
Delivr
Google Webmaster Tools
Bing Webmaster Tools
Voice of Customer
Market research to understand
customers’ needs & wants,
perception, opinion,
satisfaction
Google Surveys
SurveyMonkey
Qualtrics
4Q by iPerceptions
Qualaroo
UserTesting.com
Loop11.com
Bounce
Competitive Intelligence
Action of defining, gathering,
analyzing, and distributing
intelligence about products,
customers, competitors, and
any aspect of the environment
needed to support executives
and managers making strategic
decisions for an organization
Google Trends
Google Correlate
Compete
AdWords Keyword Tool

Experimentation /
Testing
Orderly procedure carried out
with the goal of verifying,
refuting, or establishing the
validity of a hypothesis
Google Website Optimizer
AdWords Campaign
Experiments
Optimizely
Other Analytics
Think with Google
Sprout Social
Lithium
AnalyzeWords
Twitter Analytics
Tweet Binder
Outcomes Analysis
Analysis of the factors and
experiences associated with
some business outcome
DialogTech
LivePerson
Adapted from https://www.kaushik.net/avinash/best-web-analytics-tools-quantitative-qualitative/ and Hartman, Kevin. n.d. “Digital Analytics for Marketing
Professionals: Marketing Analytics in Theory.” Accessed September 2018. https://www.coursera.org/learn/marketing-analytics/home/info

Open Source
R
https://cran.r-project.org
Microsoft R Open
https://mran.revolutionanal
ytics.com
Commercial
SAS® Enterprise Miner™
https://www.sas.com/en_id
/software/enterprise-
miner.html
IBM SPSS Modeler
https://www.ibm.com/id-
en/marketplace/spss-
modeler
Stata
https://www.stata.com

Online advertising allows advertisers to bid and pay
only for measurable user responses, such as clicks on
ads. Consequently, click prediction systems are central
to most online advertising systems.
At Facebook, ads are not associated with a query, but
instead specify demographic and interest targeting.
Thus, the volume of ads that are eligible to be
displayed when a user visits Facebook can be larger
than for sponsored search.
With over 750 million daily active users and over 1
million active advertisers, predicting clicks on
Facebook ads is a challenging machine learning task.
The authors introduced a hybrid model which
combines decision trees with logistic regression,
outperforming either of these methods on its own by
over 3%, an improvement with significant impact to
the overall system performance.
Source: He et al. (2014)

Source: https://www.nytimes.com/2014/12/08/business/media/hollywood-tracks-social-media-chatter-to-target-hit-films.html
PreAct essentially takes information continuously
from Twitter, YouTube, Tumblr, Facebook,
Instagram, movie blogs and other sites.
It provides coming movies with scores in various
categories based on the size of the online
conversation and how much of it is positive or
negative.
It also tracks how much activity is organic and how
much is the result of specific studio efforts.
Since PreAct has already collected information for
roughly 500 movies, it can generate scores for new
films by making comparisons against existing ones.
Subscribers have access to scores for any movie
headed toward theaters enabling them to
understand the health of competing releases.

Note: RealityMine is already GDPR compliant
RealityMeter enables
the tracking of real
consumers on
multiple devices,
across all major
platforms, providing a
holistic view of
consumers’ daily lives.
All this from a single
source — an
individual person.

Sentiment &
Digital Health
Index
Filter and monitor the
sentiment of the
conversation and showing
the score of some digital
index
Audience Analysis
Knowing 'who' talking
'what' and how big the
impact, including the
audience of your
competitors
Buzzer Tracking &
Monitoring
Monitoring your Buzzer/
KOLs target delivery and
their metrics performance
Alert System
Get an automatic alert
notification towards email
and SMS based on your pre-
defined threshold

Source: https://hbr.org/2018/05/why-marketing-analytics-hasnt-lived-up-to-its-promise
In a recent Harvard Business Review article (May 30, 2018), Carl F. Mela and Christine
Moorman discussed why marketing analytics hasn’t lived up to its promise.
The data used
in analytics
The analyst
talent
producing it
Two
competing
forces at play
✓ Understand the business well
✓ Master the available tools
✓ Communicate insights
✓ Span skill boundaries
✓ Decide what to do first, and then
which data needed to do it
✓ Create an integrated 360-degree
view of the customers

Scenes from sinetron Cinta Suci - Episodes 57 & 58 (SCTV)

Source: http://marketeers.com/selama-9-9-super-shopping-day-shopee-berhasil-jual-15-juta-produk/
JD.id has introduced JD.id Virtual. Harnessing the QR Code technology, it offers a
practical and innovative way to shop a modern retail with borderless shopping and
cashless features. This new service can be tried out in 9 major railway stations in the
Jabodetabek area starting from September 5, 2018.

Articles
Court, David, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik. “The Consumer Decision Journey.” McKinsey
Quarterly, June 2009, 1-11. Accessed August 29, 2018. https://www.mckinsey.com/business-functions/marketing-
and-sales/our-insights/the-consumer-decision-journey.
Edelman, David C., and Marc Singer. “Competing on Customer Journeys.” Harvard Business Review, November 2015,
88-100. Accessed September 20, 2018. https://hbr.org/2015/11/competing-on-customer-journeys.
He, Xinran, Stuart Bowers, Joaquin Quiñonero Candela, Junfeng Pan, Ou Jin, Tianbing Xu, Bo Liu, Tao Xu, Yanxin Shi,
Antoine Atallah, and Ralf Herbrich. “Practical Lessons from Predicting Clicks on Ads at Facebook.” Proceedings of 20th
ACM SIGKDD Conference on Knowledge Discovery and Data Mining - ADKDD14, 2014, 1-9.
https://research.fb.com/publications/practical-lessons-from-predicting-clicks-on-ads-at-facebook/.
Mela, Carl F., and Christine Moorman. "Why Marketing Analytics Hasn’t Lived Up to Its Promise." Harvard Business
Review, May 30, 2018. https://hbr.org/2018/05/why-marketing-analytics-hasnt-lived-up-to-its-promise.

Books
Breiman, Leo, Jerome H. Friedman, Richard A. Olshen, and Charles J. Stone. Classification and Regression Trees. First
reprint ed. Boca Raton, FL: CRC Press, 1998.
Brown, Meta S. Data Mining for Dummies. Hoboken, NJ: Wiley, 2014.
Few, Stephen. Big Data, Big Dupe: A Little Book about a Big Bunch of Nonsense. El Dorado Hills, CA: Analytics Press,
2018.
Google. ZMOT Handbook: Ways to Win Shoppers at Zero Moment of Truth. 2012.
https://www.thinkwithgoogle.com/marketing-resources/2012-zmot-handbook/.
Grigsby, Mike. Marketing Analytics: A Practical Guide to Improving Consumer Insights Using Data Techniques. 2nd ed.
London: Kogan Page Limited, 2018. Kindle Edition.
Hastie, Trevor J., Robert John Tibshirani, and Jerome H. Friedman. The Elements of Statistical Learning: Data Mining,
Inference, and Prediction. 2nd ed. New York, NY: Springer, 2016.
Hahn, Gerald J., and Necip Doganaksoy. A Career in Statistics: Beyond the Numbers. Hoboken, NJ: John Wiley & Sons,
2011.
Hosmer, David W., and Stanley Lemeshow. Applied Logistic Regression. 2nd ed. New York: Wiley, 2000.

Books
Kish, Leslie. Statistical Design for Research. New York, NY: Wiley, 2004.
Linoff, Gordon S., and Michael J.A. Berry. Data Mining Techniques For Marketing, Sales, and Customer Relationship
Management. 3rd ed. Indianapolis, IN: Wiley, 2011.
Olson, David L., and Yong Shi. Introduction to Business Data Mining. International ed. Boston, MA: McGraw-Hill, 2007.
Peterson, Eric T. 2004. Web Analytics Demystified: A Marketers Guide to Understanding How Your Web Site Affects
Your Business. Portland, OR: Celilo Group Media.
Putler, Daniel S., and Robert E. Krider. Customer and Business Analytics: Applied Data Mining for Business Decision
Making Using R. International ed. Boca Raton, FL: CRC Press, 2012.
Ratner, Bruce. Statistical and Machine-Learning Data Mining: Techniques for Better Predictive Modeling and Analysis
of Big Data. 3rd ed. Boca Raton, FL: CRC Press, 2017.
Ryan, Damian. Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. 3rd ed.
London: Kogan Page, 2014.
Saikia, Hemanta. All in one Digital Marketing: Strategy, Analytics and Research for Business Dummies. Green Booker
Publishing, 2016. Kindle Edition.

Books
Sherman, Alex, and Mike Sherman. 52 Things We Wish Someone Had Told Us About Customer Analytics. Amazon
Digital Services LLC, 2018. Kindle Edition.
Stokes, Rob. eMarketing: The Essential Guide to Marketing in a Digital World. 6th ed. Cape Town: Red & Yellow
Creative School of Business, 2018.
Wilson, April E. Digital Analytics 101. CreateSpace, 2017. Kindle Edition.

Coursera Online Courses by University of Illinois at Urbana-Champaign
Hartman, Kevin. n.d. “Digital Analytics for Marketing Professionals: Marketing Analytics in Practice.” Accessed
September 2018. https://www.coursera.org/learn/digital-analytics/home/info
Hartman, Kevin. n.d. “Digital Analytics for Marketing Professionals: Marketing Analytics in Theory.” Accessed
September 2018. https://www.coursera.org/learn/marketing-analytics/home/info
Rindfleisch, Aric. n.d. “Marketing in a Digital World.” Accessed August 2018.
https://www.coursera.org/learn/marketing-digital/home/info
Yao, Mike. n.d. “Digital Media and Marketing Principles.” Accessed October 2018.
https://www.coursera.org/learn/marketing-channels/home/info
Yao, Mike. n.d. “Digital Media and Marketing Strategies.” Accessed October 2018.
https://www.coursera.org/learn/marketing-plan/home/info

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The Roles of Analytics in Digital Marketing

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