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®WHITEPAPER / ANALYTICSUnified Analytics for Web,Social and Mobile
UNIFIED MARKETING PERFORMANCE: MAXIMIZING RETURN ON DIGITAL MARKETING CAMPAIGNS At a Glance Business Trend • Digital marketing has entered a new, fragmented universe, a multiple channel galaxy of web, social and mobile planets. • Consumer adoption of social and mobile is especially fast and furious, ramping up faster than past channels, putting brands and chief marketing officers under pressure to understand consumers and meet demand. • This fragmentation is disrupting the marketing landscape and presenting new challenges for determining investment and measuring effectiveness. At Issue • Many of the same challenges faced 15 years ago when companies began web marketing are at issue today in social and mobile channels. • Brands are jumping on the social and mobile bandwagons to meet demand, but in the rush to get there are bypassing the fundamentals of digital marketing planning. • Each digital channel has its own measure of success, but many marketers are unaware of what to measure and which key indicators are important Business Solution • A strategy that includes measurement, testing, targeting and optimization is a recipe for success in social and mobile channels, just as it is with websites. • Knowing what and how to measure each channel can set the stage for continual improvement, customer engagement, and conversion and revenue. • Advanced tools that allow data to be analyzed and optimized across all channels offer the best business case for achieving marketing performance by getting measurable return on marketing dollars. CHALLENGES OF THE NEW DIGITAL MARKETING LANDSCAPE An enormous wave of diversity has hit the shores of digital marketers. With the fast and furious adoption of Facebook, Twitter and smartphones, consumer demand for social and mobile channels has hit marketing like a tsunami, catching many brands – and their CMOs – unprepared to manage expectations in this new digital landscape. With every new channel comes a new set of technologies, content classification, standards and measurements that must be understood and incorporated into marketing programs. And developing new channels requires a level of investment that often requires justification to the executive board. How can brands know which new channels will be worth their time and resources?WHITEPAPER / ANALYTICS 2
The new multi-channel ecosystem, spurred by consumer demand and sophistication, is disrupting the digital marketing landscape and making it difficult to measure effectiveness and evaluate overall performance. The Fragmentation of Customer Touchpoints In May 2011, Webtrends commissioned Forrester Consulting to study the phenomenon of the "splinternet," a term Forrester coined to describe how digital interactions have moved from being primarily site-centric just a few years ago to being splintered across multiple channels and devices. The study yielded three key findings: 1. The Splinternet disrupts the marketing landscape, but adapting to a multiple channel environment is critical. 2. Marketing strategies need a reboot to meet expectations of sophisticated consumers. 3. Multi-channel success requires understanding of unified customer behavior across all channels. Success Looks Different Over Here “Get ready for mobile now. Adding to the sense of disruption - and confusion - is that success on Begin evaluating mobile social and mobile platforms is measured differently than success is channels and establishing measured on the web. benchmarks to ensure that your organization is ready For instance, web performance is most often measured in visits, page to expand into mobile once views, click-throughs, duration, etc. Social platform success is seen in it hits the tipping point with "likes," posts, comments, sponsored stories, re-tweets, etc.; while your target customers.” mobile is seen through the lens of downloads, usage, QR code usage, or even as a tool for payment. Source: Recommendation from “The Because there are significant differences in technologies across Implications of the Splinternet and Future of Web Analytics.” A Forrester platforms, there are differences in the way customer engagement is Consulting Thought Leadership Paper performed. As these channels advance and more tools and apps Commissioned by Webtrends in September, 2011 become available in each platform, what is measured – and how it is measured – is important to how success is measured.WHITEPAPER / ANALYTICS 3
HOW TO MEASURE FOR DIGITAL MARKETING SUCCESS Marketers see the splinternet as an opportunity to deliver more targeted and relevant communications for increased customer engagement. Each new channel offers another way to acquire customers and increase loyalty. Yet, 68 percent of brands enter these new channels without a plan for success. Lessons learned from the web Fifteen years ago, the web was emerging as a new marketing channel. Companies developed a website not knowing where they were headed with it or how to measure its effectiveness. And many companies were reluctant to enter the channel, not knowing if it would bring value to their customers or be worth the investment – at that time, a very expensive undertaking. The same challenges are present today in social and mobile channels. But lessons learned and tools created for measurement and optimization of websites can be carried forward into these new digital arenas. Measurement enables brands to put a strategy in place and plan for success, one step at a time. Measuring each channel strategically gives brands the ability to compare results across channels and integrate results for a unified view of overall marketing performance. The Digital Marketing Maturity Model: Crawl, Walk, Run Entering a new channel without a plan for success that includes measurement and optimization can be costly, especially if youre "just experimenting". Thinking through goals and setting expectations can ease trepidation of entering an unknown channel, and instead set a path toward a new marketing opportunity. To plan for success, brands are adopting a three-step process, which can be thought of as the "crawl, walk, run" process, and it involves measurement, testing and targeting, and nurturing and effectiveness: Forrester’s study yielded three key findings: 1. Crawl: This is an operational reporting stage, where brands measure what matters to a companys key performance indicators, such as adoption of apps or acquisition of fans. 2. Walk: Testing and targeting allows brands to apply insights from measurement to build engagement and improve the customer experience. 3. Run: Nurturing users with targeted marketing results in conversions and revenue, providing brands with a true picture of marketing effectiveness. This process is not only a recipe for marketing success, its a path for gaining maturity in all digital channels. SOCIAL MARKETING: CONNECTIONS THAT COUNT Social media itself is changing. Facebook has been primarily known as a community site where friends could communicate and fans could engage with their favorite brands. But Facebook has evolved. In just a short time, Facebook has become a powerhouse of ad inventory, more than Yahoo!, Microsoft, FOX and AOL, with nearly 180 billion U.S. display ad impressions alone. It is now a performance environment filled with media and ad campaigns, click-throughs, conversions and revenue streams.WHITEPAPER / ANALYTICS 4
Strategies learned through online and database marketing can also be applied to Facebook: Fans are 100 percent opt-in subscribers comprised of customers and potential customers; Ad units are email campaigns; Apps are landing pages; and the Fan Page is a website. And just as with online marketing, campaign performance can be measured, tested, targeted and optimized to gain enhanced results and fan engagement. To make Facebook connections count, it is important to follow the crawl, walk, run process: acquisition, engagement and nurture, with nurture being the level that brings most value, either in conversions or revenue. Social Marketing Maturity Model Crawl: Walk: Testing, Targeting/ Run: Nurture/ Acquisition/Adoption Engagement Effectiveness Target Strangers, customers Fans Fans and friends of fans Destination Fan page or site Fan page or app App Goal or Value Build fan base or traffic for Build affinity and boost Monetize base with your website sponsored stories: "people targeted ads (ads for are talking about this" fans) Metric Facebook asset or Sponsored stories or External with campaign external page targeted ads IDs In the beginning, brands focus on fan acquisition. Once a base is built, the focus turns to engagement, but it is important to consider the nuisances of Facebook. The site uses an algorithm called EdgeRank that makes relationships with fans the highest priority. If fans aren’t actively engaging with a fan page, then wall posts aren’t included in newsfeeds. Activity that actively engages fans and their friends are on topics that are fun to talk about, such as travel, media, sports, fashion, luxury goods, Cold call targeting cars, blogs, etc., that are easily shared and commented on. Conversely, averages .05 percent CTR. wall posts that use language such as “percent off,” “sale,” and “coupon,” Ads for Fans reap a .35 attract lowest rates of fan engagement. That said, if there is budget to percent CTR. That’s 7X advertise, Facebook ads are a highly effective medium for acquiring fans greater. and building a solid fan base. However, unlike traditional pay-per-click, more is not better on Facebook. The broader the reach the less relevant ad units will be. Facebook’s ad interface allows brands to be very specific with ad targeting. Consider the results: cold targeting click-through rates (CTR) for ads average .05 percent, while targeted ads gain a .35 percent CTR. That’s 7X greater, and a measurement of social marketing maturity. MOBILE MARKETING: DEMONSTRATING VALUE Mobile devices, from smartphones to tablets, have become the remote controls for daily living. Usage is big and ramping fast, and global brands are rushing to invest billions of dollars in mobile apps, sites and advertising - evenWHITEPAPER / ANALYTICS 5
before they have a marketing strategy in place. As with other digital channels, knowing how customers are using mobile is vital to determining where marketing budgets and resources are best spent. Setting up a plan for measurement before launching an app or a mobile ad campaign is key to a successful endeavor. Thats why its important to know what metrics are meaningful at each stage of mobile marketing. Initial metrics differ slightly than those for social marketing, but the plan for success is the same. Again using the crawl, walk, run analogy, mobile channel success is a three-stage measurement process of adoption, engagement and effectiveness, a continuous process where brands gain and identify users, learn their behaviors, iterate offerings, measure effectiveness, and improve efforts. Mobile Measurement Maturity Model Crawl: Adoption Walk: Engagement Run: Effectiveness Operational Reporting Metrics Measure Usage and Do Testing Insight and Optimization Count app downloads Frequency of visits and visitors Understand mechanics and drivers of conversions Site or app visitors, sources of Depth of use – event/visitor, Improve efforts based on traffic and SMS subscribers duration, SMS and QR response, engagement in high-value sharing activities App usage (percentage of Retention rate (percentage of Expand testing efforts downloads) returning visitors) Geographic distribution of visitors Develop programs, sites and apps Integrate mobile data into eCRM around data insights Its clear that the number of downloads or site visits is just the beginning of measuring mobile success. Are customers using their phones and iPads on Twitter, Facebook or texting? For QR codes, banking, purchases, comparison shopping, reading the news, locating a restaurant? Or have they ignored your app completely? It’s important to know. The more data available, the more opportunity there is for consumer engagement that is meaningful, influential and ultimately, profitable. While brands are quickly engaging in both social and mobile marketing, neither effort should be treated as stand-alone activities, but rather as complementary to other digital channel activities. NOT ALL MARKETING MEASUREMENT “ Webtrends has given us a TOOLS ARE CREATED EQUAL better way of spending our marketing dollars, and the While it can be tempting to use a free analytics tool, it may deliver better I spend them and create Return On inadequate or inaccurate metrics, which can give brands a false or Investment, the better off incomplete reading on important milestones. we are as a business. ” For instance, there are analytics programs that can only measure Android TED SCHWEITZER Director, e-Commerce, or Microsoft smartphones. If you know for certain that customers use La Quinta Inns and Suites only those platforms, then measurements may be fairly accurate. But inWHITEPAPER / ANALYTICS 6
the real world, consumers use a wide range of smartphone platforms – youll want a more comprehensive analytics tool that can provide data on all mobile platforms. Measuring results on Facebook can be a challenge, too. iFrames, an HTML structure that allows an external page to be embedded within another page, cant see campaign IDs in the referring link from an ad or post in Facebook. This requires a tracking or analytics tool that supports passing app data, allowing brands to track a Facebook campaign, just as is done on a website. And to follow a Facebook visitor through to another property, such as a website, the analytics solution has to support cross-domain tracking. Open platform enables deep channel measurement Rich data is needed to measure a return on marketing investment. A robust analytics solution recognizes the difference between channels, provides deep metrics from each channel, and then enables graphical reporting across all channels. This means using an open analytics platform that is designed to accommodate the peculiarities Being able to compare, contrast and unify of diverse technologies. data from web, social and mobile channels requires an open platform analytics solution. With open platform, brands can compare and contrast data across all digital channels for a unified view of overall marketing performance. An open platform also gives companies the ability to incorporate data into customer relationship management tools. UNIFIED ANALYTICS = MAXIMIZING RETURNS ACROSS CHANNELS Marketers are warily navigating their way through the digital landscape. While uncertainty is a factor challenging even the most seasoned brand, fragmentation presents opportunities for customer engagement on many levels. A concern about a return on investment is a valid one, and the issue is made even more complex by the fact that there is no consistent metric across channels. However, by following this four-point recipe for digital marketing success, brands can achieve a competitive advantage: • Collect data across all your digital channels • Measure and improve online user experience across your website, social media channels, and mobile devices • Segment your customer base according to online behavior over time • Optimize and deliver the most relevant content and promotions that drives your customer acquisition, conversion, retention and engagement)WHITEPAPER / ANALYTICS 7
Digital marketing starts with a solid plan for measurement and optimization. Webtrends is built on an open platform and has the capability of funneling separate channel data upward into a holistic view of the marketing landscape. Working with Webtrends is how major brands achieve the power to connect with customers in meaningful ways, while unifying their marketing intelligence and justifying investment. Call us, let’s talk. North America – 877.9 32.8736 EMEA - +44 (0) 1784 415 700 ® About Webtrends Inc. Webtrends is the global leader in unified mobile, social and web analytics and engagement. We help marketers create, measure and improve campaigns for more than 3,500 global brands including: The New York Times, Microsoft, BMW, RIM, China Telecom, China Mobile, CCTV, Tencent QQ, Hitachi, The Associated Press, HSBC, Barclays, Vivo Cellular and Petrobras. Our leadership extends beyond the web analytics industry we founded to the measurement, optimization and integration of all digital content and customer intelligence, including web sites, social media, mobile and paid-search advertising. Webtrends is a registered trademark of Webtrends Inc. in the United States and other countries. All other trademarks and registered trademarks are the properties of their respective owners. 851 SW 6th Ave., Suite 1600 Webtrends Sales Europe, Middle East, Africa For offices worldwide, visit: Portland, OR 97204 1.888.932.8736 +44 (0) 1784 415 700 www.Webtrends.com 1.503.294.7025 sales@Webtrends.com emea@Webtrends.com fax: 1.503.294.7130WHITEPAPER / ANALYTICS 8