2. Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
7% of disposable income is now saved – was 0%
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4. A look at “who” at world class brands
Cadillac American Express
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Hershey Allstate
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
4 Source: Acxiom comScore (July 2009)
5. …and at leading publishers
MSN Yahoo
96 MM UV’s 148 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
eBay AOL
56 MM UV’s 70 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
5 Source: Acxiom comScore (July 2009)
6. Like a box of chocolates…
• With most media, you never know who
you’re gonna get.
– ~80% online ad spend delivered to
wrong audience. comScore 2009
• Knowing who determines:
– How much to invest…if anything
– What to say…without guessing
• Most firms…
– Over-invest in low value relationships
– Under-invest in high value relationships
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8. Concentration Multiplier ROI Illustration
Concentrated Traditional Variance
Campaign Cost
Impression Volume 43,750,000 100,000,000
Cost per Thousand $ 8.00 $ 3.50
Total Campaign Cost $ 350,000 $ 350,000 $ -
Revenue Generated
Revenue/conversion $ 375 $ 250
Clickthrough Rate 0.113% 0.075%
Conversion to Click Rate 5.00% 2.00%
Latent/viewthrough conv % 50% 50%
Total Conversions 3,691 2,250
Total Revenue $ 1,384,277 $ 562,500 $ 821,777 146% higher
Contribution
From clickthrough $ 572,852 $ 25,000
Total Contribution $ 1,034,277 $ 212,500 $ 821,777 387% higher
Revenue per Ad Dollar
From clickthrough $ 1.64 $ 0.07
Total Revenue/Ad Dollar $ 3.96 $ 1.61 $ 2.35 146% higher
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9. What to do now
Use the concentration multiplier principle to drive ROMI
1. Identify customer value
2. Invest proportionally
3. Find/recognize & engage
accordingly
4. Measure acquired value
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10. Thank You
The global interactive marketing services company
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/acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom
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