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 consumers 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%
2
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.
• 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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7. Avoid the illusion of science
• Acquisition metrics, in isolation, create…
– “leaky buckets,” “zombies” & the “quiet types”
• Incorporate “acquired value” metrics
– Longevity of relationship
– Upsell/cross-sell potential
– Influence
– Service costs
• Key takeaway: measure customer value per ad dollar
– Value beyond the click & initial transaction
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9. The Concentration Multiplier
Concentrating on the most valuable “who’s”
1. Identify customer value
2. Invest proportionally
3. Find/recognize & engage
accordingly
4. Measure acquired value
9
11. Concentrator Multiplier ROI illustration
Concentration Traditional Variance
Campaign Cost
Impression Volume 10,000,000 10,000,000
Cost per Thousand € 5.00 € 2.50
Total Campaign Cost € 50,000 € 25,000 (€ 25,000)
Revenue Generated
Revenue/conversion € 20 € 10
Clickthrough Rate 0.15% 0.10%
Latent/viewthrough revenue 50% 50%
Revenue from clickthrough € 300,000 € 100,000
Total Revenue € 450,000 € 150,000 € 300,000
Contribution
From clickthrough € 250,000 € 75,000
Total Contribution € 400,000 € 125,000 € 275,000
Revenue per Ad Dollar
From clickthrough € 6.00 € 4.00
Total Revenue/Ad Dollar € 9.00 € 6.00
Premise
Concentrating impressions on high value visitors…
>Enables higher financial return (because of focus on more valuable visitors)
>Enables higher CTRs (because creative can be versioned)
Even if visitors don't click, advertisers will generate significant online/offline lift (halo/viewthrough effect) 11
12. Sound obvious?
“… too many shortcomings to be seriously considered as a
means of communication. The device is inherently of no
value to us.“
Western Union memo on potential for the telephone, 1876.
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15. Understanding these effects is critical to ROMI
• Significant arbitrage opportunity
– 47% of advertising is wasted
• Understanding specific cause &
effect is essential
• A multichannel marketing
database plays a crucial role
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17. Target: Television
3245K Cash & Careers Digital TV
households:
Current customers: 548K
Top prospects: 798K
Lower value non-customers: 1863K
17 Illustration only
18. Assess & Recalibrate: Online Search
comScore
Top Search Terms
Category: “Banking”
• Bank of America Online Banking
• Bank of America
• Washington Mutual
• WAMU
• Citi
• Commercebankonline
• Commerceonlinebanking.com
• Commercebank.com
• USBank
• US Bank Internet Banking
18 Illustration only
19. Assess & Recalibrate: Site Traffic
comScore
Site Traffic
Segment Metrix
• Bank of America UV Index 189
• Citi UV Index 177
• WAMU UV Index 164
• HSBC UV Index 134
• Chase.com UV Index 117
19 Illustration only
20. Assess & Recalibrate: Conversion
Relevance View Index
280
270
75 70
Cash & Careers Established
Elite
Percentage of Visitors to Landing Page
Percentage of Visitors to Confirmation Page
20 Illustration only
21. Integrate: TV plus Online Display Ads
Drive Acquisition
8MM daily online display impressions
available for this specific cluster
Current customers: 548K
Top prospects: 798K
Lower value non-customers: 1863K
21 Illustration only
22. Integrate: TV plus Online Display Ads and Social
Drive Acquisition
54K “wide netters” for this specific
cluster
Avg Avg
Count % Networks Friends
Wide Netters 54252 10% 6.0 122
Selectively Social 53704 10% 2.0 38
Social Placeholders 52608 10% 5.5 3
Getting Started 191252 35% 2.0 0
Undeclared 191800 35% 0.0 0
22 Illustration only
24. The Marketing Cascade in practice…
4x “orders per thousand” $200M revenue / $4.5M
– Connecting print & digital OpEx savings
3x applications; 5x online – Connecting call center & digital
revenue; same head count $100M/yr EBIT impact
– Connecting call center & digital – Multichannel connection
2x online bookings 9-figure/yr revenue impact
– Connecting outbound & website – Multichannel connection
7.5x website spend
– Connecting mobile & email
17x response
– Connecting TV & offline
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25. This is obvious also, right?
"We don't like their sound, and guitar music is on the way
out.“
Decca Recording Co. rejecting the Beatles, 1962.
25
26. 10 Easy Money ideas
The Idea How & Why The Benefit
Test Collaborative Targeting & Relevance Concentrate ad impressions on visitors 3-5X revenue / ad dollar at other clients
with Internet properties. Then follow up most likely to be valuable, loyal, etc. Existing customers respond 17X to
with television prospects to digital TV ads
Recognize & connect with social Use existing email addresses to Match against 500M socially active
influencers recognize socially active customers & individuals (~60-70% of any email list)
prospects
Test mobile as a lifecycle messaging tool Avg. mobile purchaser has higher income Integrated with Impact. Likely halo effect
& spends 2X as a Web-only buyer
Examine call center patterns to identify Identify high-volume drivers of calls – $2M / year cost displacement & $200M /
content for future emails requests for info, small cross sales, etc. yr influenced revenue at another client
Connect Web analytics with outbound Following the digital footprints to 2X website conversions achieved at
messaging recalibrate outbound marketing another client
If chat available on their site, offer to send Email a branded transcript back to site This is the highest performing email
a branded transcript of the chat visitors. Include buttons to “buy” or to application at another client
“subscribe” to other services
Do an organic search audit Identify opportunities to improve organic 72% of GOOG CTR is organic. A proper
visibility, & possibly reduce paid expense audit enables more free traffic
If receiving third-party leads, implement Build / implement predictive models to The bottom three deciles can likely be
lead scoring screen out low value leads provided eliminated without impacting conversions
Consider a test with ACXM CoReg
services and / or e-list rental
Improve the site experience Test content with Impact Site. Personalized site experiences drive
Implement View tags to measure 4–15X ROI
conversion funnel progress by lifestage
Retarget site visitors that do not convert 53% of shopping carts abandon. Remarketing generates $4–10 revenue
Remarket based on specific site per ad dollar at other clients
behavior / lifestage
27. Marketing/Advertising in the Reset Economy
Lessons from leaders…
• Concentrate on the most valuable who’s Concentration Multiplier
• Arbitrage your media Leverage the Marketing Cascade
• Harvest the confluence of insight & media Engage, don’t just target
• Take the “easy money” Swallowing Atlantic Ocean not advisable
• Connect & leverage institutional memory (multi-channel database is essential)
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28. What could have been
owned
Portable Music
but couldn’t
become
It’s not enough…
A great customer base
owned
A great product
On-Demand Info A great strategy
but couldn’t A great team
become
owned
Darwin always wins.
Movie Inventory
Will you?
but couldn’t
become
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29. Thank you.
The global interactive marketing services company
www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com
/acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom
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