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    An LBi/bigmouthmedia White Paper

    June 2011

    When 1+1 is more than 2.

    Blending:Digital

    ChannelIntegration

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    Adam Russsell

    Media Account Director, LBi

    A lot o agencies want to saeguard their own patch. From mypoint o view, I have always believed in doing what is right orthe client. The vital thing is that the client always has a clearpicture o everything.

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    LBi/bigmouthmedia

    3

    Specialists, clients and a twist in the integration story

    The steady emergence o individual digital channels into

    powerul marketing tools owes itsel in each case to the

    specialists who have mastered them, rened them and stretched

    their possibilities.

    Over the years, experts in SEO, PPC, display, aliate marketing

    and, more recently, social media, have rightly lobbied marketers

    to treat theirs as a complex discipline that requires single-

    minded attention and its own budget. As a result, many clients

    retain a variety o digital agencies to manage dierent aspects o

    their online marketing.

    When agencies work closely together and strategy and data areshared, such an arrangement can work. But amid an increasing

    awareness o the inter-dependence o these channels, brands

    are looking aresh at their agency relationships as they attempt

    to nd a clear overview o their digital activity.

    Since long beore the dawn o digital, integration has been a

    cyclical trend in media circles, where networks have grown and

    diversied and marketing directors have consolidated specialist

    accounts within a single group. Ater a period, the reverse trend

    kicks in and the specialists rise again.

    A version o the integration trend is beginning to take place in

    digital, but with a twist that suggests it may be a one-way move.

    Part One:

    Executivesummary

    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2

    Case study

    The online legal client

    SEO, PPC and display

    Story Working closely with SEO to identiy core terms -

    initially targeting with PPC as SEO rankings improved, then

    reducing the PPC ocus, then moving onto another set o

    terms.

    Benefts o blending The ability to react across the

    channels to any shiting results to make sure value was

    maximised. Also budget exibility: when the SEO/link-

    building work produced particularly strong results, budgetwould be re-allocated to display.

    The eect o PPC and display on SEO was that long-term

    strategies were kept sae in the knowledge that other

    channels could react quickly where SEO could not. Those

    channels could capitalise in an agile manner on a sudden

    increase in will-writing, leaving the SEO team to ocus on

    getting good content up ast.

    Results 42% increase in top 10 positions or keywords

    targeted during link-building campaign in 5 months and a

    86% increase in organic trac in the same period.

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    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2LBi/bigmouthmedia

    The new realities

    1. Consumers dont operate on a channel-by-channel basis

    Advances in tracking technology, combined with old-ashioned

    common sense, have unlocked vast reserves o data to

    demonstrate that consumers dont search the web in straight

    lines, and no digital channel works in isolation.

    Users ree-roaming digital habits slice through digital

    disciplines, and the last click may bear only a proportion o

    the credit or a sale. Digital behaviour is evolving rapidly, and

    marketing approaches need to evolve too.

    2. Clients need to see what all this digital marketing is

    adding up toWise brands want a complete picture o their digital channels

    and the way they inuence each other, the better to understand

    how a customer thinks and acts on the way to a purchase. As

    they nd their way around the digital landscape with increasing

    assurance, they are investigating ways they can maximise

    synergies between digital channels.

    They also want greater transparency and co-operation at an

    agency level. 80% o marketing directors eel digital agencies

    are too ragmented and specialised, and they want a digital

    agency that can provide a ull set o digital services (source:

    GyroHSR).

    3. Agencies are evolving - some more than othersConsolidation in the marketplace has, in a rare ew cases, put

    market-leading specialists inside larger companies that also

    house cutting-edge practitioners in other digital disciplines.

    At the same time, many more companies have bolted on or

    contracted out expertise in additional digital channels to

    provide an impression o an integrated service.

    The integration o numerous skill sets is a hard trick or agencies

    to master, either organically or by acquisition, and only a handul

    can be said to have succeeded.

    Equally, where an agency ocuses on a single digital discipline,

    its vested interest is oten in saeguarding revenue and

    ghting or its assigned channel, rather than making the

    best possible broader media decisions or a clients business.

    1+1= more than 2

    Integration o some or all o a brands interconnected digitalchannels under the watchul eye o a unied set o specialists

    is the likely next move or many marketers. Plenty o others,

    particularly in cutting-edge digital marketing sectors such as

    retail and travel, have already made that step.

    The twist is that digital, unlike ofine channels, is a single

    medium whose marketing disciplines beneted rom a siloed

    approach while they were taking their baby steps. In its maturing

    state, digital marketing is better served by a orm o blending

    that unites teams o specialists.

    Just as it ever has, every channel needs real expertise. Experience

    and deep-seated knowledge o individual disciplines remain vital

    or the blending approach to work. Clients need to beware obolted-on specialisms, and o digital agencies that are good, but

    not necessarily great, in a range o areas.

    Case study

    The international retailer

    SEO, PPC and aliate marketing

    StoryA successul PPC relationship grew to include SEO and

    aliates.

    Challenges The retailer had concerns about running discount

    codes via the aliate channel and the perceived negative eect

    this might have on the brand.

    The SEO operation, meanwhile, lacked metadata and had

    experienced problems with their developers. Another challengewas generic vs. brand exposure, as most trac to the site came

    rom brand searches rather than generic keywords.

    Benefts o blending British, German and French SEO and

    aliate campaigns, sharing data and managed rom a single

    location, complemented each other well. Knowledge and

    insights were shared across the continent. Tests showed

    running tactical discount code and oers worked; the client

    embraced that cultural shit and now sees aliate marketing as

    a key channel to deliver incremental sales.

    Results The retailer is starting to rank or non-brand terms.

    Compounded PPC/SEO exposure o those keywords increased

    generic perormance.

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    Dee Miller

    Head o SEO, bigmouthmedia

    Small clients are able to win larger amounts o territory thanbigger guys, because they can move aster. The underdog willalways win out, depending on how they are structured. Insearch, you can do that so easily i you have the right attitude

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    LBi/bigmouthmedia

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    How it works, what it means

    The increasing inter-relationship o channels is a relection

    o the growth o digital. Organic search, paid search

    and social have become ar more signiicant and inter-

    dependent as they have matured. Even older channels such

    as display are in the process o joining the others in a new,

    more automated mode driven by demand-side platorms

    and ad exchanges.

    Paid search and SEO have always been known to link very

    closely together. But in the past two years, as reporting and

    analytics have made giant strides, the market has come to

    realise that the entire digital mix can oten work as one.

    Campaigns that run in one channel invariably impact on

    one or more o the others. In some cases, channels cant

    even be divided. A paid search agency might easily run ads

    on the Google Display Network, using a strategy that mixes

    conventional search, a content campaign based on multiple

    words and ad placement using data rom the other two.

    Equally, as social blossoms as a marketing platorm, its

    eects have become inextricable rom those o SEO, not

    least as Google is increasingly eeding social data into

    search. Where the two activities are not run rom a single

    account, they are almost guaranteed to trip over each

    other.

    All in all, single-channel digital campaigns that do not take

    account o other channels at the planning or execution

    stages create intererence, wastage, double-accounting

    and missed opportunities.

    Defnition The consolidation o a clients ull set o digital channels

    within a single account held by a single agency, or the sake o maxi-

    mum synergy and optimum eectiveness.

    Part Two:Digitalchannelintegration ablended aproach

    Case study

    The nancial client

    Online PR, SEO and PPC

    Story The client opted or channel integration to increase

    agility, eciency and overall campaign knowledge.

    Challenges: Maintaining cost eectiveness o the clients

    online direct response activity whilst growing volumes.

    Benets o blending: A holistic, exible media plan allows

    uid movement o budget between channels, depending

    on perormance.

    Solution Channels were optimised holistically, movingbeyond the last click wins worldview to adapt to the

    interactions that exist between channels. Optimisation

    was broadened to take into account ofine conversion

    processes, maximising cost-eective customers, rather

    than cost-eective leads.

    Results Conversions in the rst year more than doubled,

    up by 104%. Growth continued the ollowing year with

    conversions increasing a urther 60% YOY and cost-per-

    conversion alling by 28%. Since then the campaign has

    seen sustained cost-eectiveness, with an increase in paid

    search and display leads o 16% YOY.

    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2

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    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2LBi/bigmouthmedia

    Main challenges and benefts

    Business can reap many benets by amalgamating digital

    eorts and budgets and going with a single provider. But

    that provider needs to be the right one, able to demonstrate:

    Capability - specialism and expertise in every one o the

    digital channels, including strategy, design, creative and

    media

    Scale - the ability to deploy at the requested level, across

    the requested channels, internationally i necessary

    Perormance - the willingness to be judged by results

    When executed properly, with precision, scale and accountability,

    digital channel integration as a truly blended exercise is a

    holistic discipline, not a one-size-ts-all routine. While there are

    certain rules o thumb, such as the inter-dependence o SEO and

    social, SEO and PPC or search and display, no single solution ts

    any two clients, and there is no template.

    However, there is a reliable set o advantages to an integrated

    approach. Done right, blending can oer:

    Coherent management o internet marketing and the

    ability to nd and maximise synergies between channels

    Speed o reaction - brands can react more quickly whenone agency holds all the keys

    Efective asset coordination - landing pages, inographics

    and other content can be shared between channel campaigns

    Reduced technology redundancy - whereas

    independe ntly-managed channels will oten each employ a

    dierent technology package and use only one aspect o it

    Consolidated analytics and reporting - clients can view all

    channel data on a single dashboard

    The opportunity or agencies to be budget-agnostic,

    without the temptation to overstate the success o a

    channel - or make a case or an under-perorming one -

    simply to saeguard ees

    Does size matter?

    In Malcolm Gladwells 2009 New Yorker article, How David BeatsGoliath, the American thinker and writer explains, with the aid

    o several sporting and military examples, how underdogs that

    acknowledge their weaknesses and adopt an unconventional

    strategy are a good bet to beat their larger rivals.

    Blending is not simply a question o intelligently leveraging scale

    on behal o big brands. The value o the method applies equally,

    and perhaps even more so, to those with smaller budgets and

    less market presence. By championing an intelligent, bespoke,

    broad-based digital strategy, a genuinely integrated digital

    agency can help a smaller client pick its battles and win them.

    The increased reaction speed and clearer communication lines

    provided by digital channel integration allow marketers to respondto opportunities and challenges in real time and well ahead o the

    wider market. And where a smaller client cant aord to be active in

    several channels at once, it needs an agency that oers experience

    o all o them and sound advice on which one to pick.

    Case study

    The publisher

    Social media, SEO and PPC

    Story The client sought to maximise the number o

    unique visitors and page views or the available budget.

    Challenges Focusing consultancy hours on spotting the

    biggest opportunities or quick-win trending topics and

    marathon long-term beneits.

    Beneits o blending A mix o always-on, low-CPC,

    strategic keywords and one-o, seasonal, tacticalkeywords, ocused on increasing brand awareness.

    Bidding and positional strategies aimed to optimise

    the search real estate.

    Results Over a 12-month period, a strong overall

    strategy as well as careul campaign optimisation and

    tactical adjustments led to unique visitor increases o

    between 37% and 155% on ive dierent publications,

    all owing to search. For one particular publication, non-

    brand search visits increased by 172% (compared with

    50% or brand). The cost per unique visitor rom

    the search channel declined or all publications over

    that period.

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    Chris Lewis

    Group Account Director, bigmouthmedia

    In terms o consolidation o channels, ultimately there has tobe a beneft to doing it, and it has to be something more thanthe act that it is easier calling a single account manager. Tomy mind, thats not good enough.

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    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2LBi/bigmouthmedia

    The data point

    I a client can centralise its data in one location, de-dupe and

    analyse it, it allows the brand to see the relative value o its

    channels and look at its marketing rom the point o view o

    its business objectives. That in turn leads to more inormed

    decisions, greater eciencies and economies o scale.

    their accounts. Provided data, strategic thinking and post-

    campaign analytics are shared between agencies, who in

    turn work closely together on a daily basis, without the

    intrusion o inter-agency politics, digital channel integration

    is possible by other means.

    But thats easier said than done

    While most digital specialists pride themselves on their

    ability to cooperate, the reality is that a single client services

    team and account management team has a unique ability to

    identiy eective strategic and budgetary shits.

    At a nuts-and-bolts level, meanwhile, the problem o running

    channels separately is oten one o technology. An agency

    might change a landing page or a URL or its own reasons andail to communicate it across to its ellow supplier, tripping

    up another channels campaign in the process.

    The duplication question

    Channels that are run side by side dont need to attack the

    same targets and can do many things to avoid doing so. I

    one agency is running all digital channels, the duplication

    problem wont immediately go away, but it is certainly a lot

    easier to get a handle on.

    The analytics issue

    Realistically, channels all have dierent cost structures and are

    hard to compare: SEO is managed on an hourly rate, aliate

    is rewarded based on perormance, paid search is billed as apercentage o spend. Whether these channels are integrated or

    not, the job o merging and comparing data is not an easy one,

    but it gets a lot harder when the data is scattered across several

    organisations.

    Why isnt everybody already blending digital channels?

    Maybe they dont want to

    Many clients continue to exercise their right to organise their

    digital channels in silos. Some will have good reasons or

    doing so, such as strong long-term relationships with several

    suppliers, or the desire or a variety o perspectives. For these

    and other legacy reasons, most pitches are still conducted

    on a channel-by-channel basis, which is why integration

    tends to take place only when an agency with multi-channel

    abilities has proved itsel in one channel irst.

    Maybe they can achieve the same eects on their own

    Intelligent clients may be getting something close to the very

    best out o their digital channels without ormally integrating

    Case study

    The B2B player

    Display and creative

    StoryA UK and US recruitment drive.

    Challenges Reducing acquisition cost, rening the

    campaign in one country or roll-out in the other.

    Benefts o blending An integrated display campaign,

    launched and rened in the UK, then rolled out to the US.

    Results Through optimisation o sites, placements and

    creative messages, the client achieved a reduction o 30%

    in acquisition cost or its UK campaign in month two. The

    lessons were carried over to a new campaign in the US

    where the rst month o activity delivered results 20%

    more ecient than the UK in month one.

    Case study

    The international telco

    Display and PPC across US, EU and UAE

    Story A new international product launch.

    Challenges: Managing display and search without

    cannibalisation and while maximising the value o both.

    Benefts o blending Two campaigns each ran search and

    display over a three-month period.

    Results Budgets increased 175% or the second campaign

    based on strong perormance. Overall CTRs improved by

    250%.

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    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2LBi/bigmouthmedia

    The LBi and bigmouthmedia approach

    Blending is central to LBi and bigmouthmedia. It allows the

    agencies to take ideas rom strategy and concept to launch and

    evaluation as quickly and eectively as possible regardless o

    the specics o the business challenge.

    Market-leading specialist teams ocus on SEO, PPC, display,

    aliate marketing, social, analytics and a ull spread o digital

    disciplines. A cross-digital team blends those units, giving a

    single point o contact to clients who want one. Those who

    preer to talk to the groups on the ground can do that too.

    From its own experience, LBi and bigmouthmedia identiy

    numerous examples o digital channel integration strategies

    that have helped to realise key business and marketing goals.

    A household name in travel, having merged its PPC and SEO

    activity, was able to consolidate its content and keywords.

    Creating a tiered structure o routes, it directed SEO and PPC

    searches or a given destination to the same landing pages. That

    approach resulted in dramatically improved organic rankings

    across numerous routes, as well as a reduction in campaign

    costs and an increase in revenue and conversions.

    A major nancial client, likewise, developed a standard SEO

    strategy into a exible online PR, SEO and PPC plan, allowing

    easy transer o budget between channels, depending on

    their success. Optimising these channels, adapting to their

    interactions and actoring in ofine processes resulted inconsistent year-on-year rises in conversions against a all in

    conversion costs.

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    I dont think you should appoint an agency to do any pieceo digital work or you unless they are an expert in that singlepiece o digital work. I you have two digital channels tomanage, the best case is an agency that is good at both. I youcant fnd that, you need to fnd two agencies.

    Andrew Girdwood

    Media Innovations Director, bigmouthmedia

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    LBi/bigmouthmedia

    12

    The move towards blending digital channels is a dierent

    debate to the time-honoured specialist vs. network

    argument that has pinged back and orth or years. The

    consolidation o digital isnt a matter o agency empire-

    building, but the maturation o digital habits and channels

    and the need to manage inter-related channels with a single

    strategy.

    Brands and agencies are all attempting to answer the

    ultimate question o what makes consumers act. Digital

    collectively represents a single window through which to

    contemplate that question. To regard the space in terms

    o individual channels is to decline the opportunity to

    build a true picture, given that those channels overlap and

    interweave at every turn.

    Ease o communication, both between clients and agencies

    and among specialists, plays an important role in the case

    or blending. So do economic arguments around the sharing

    o technology and content, and the vital issue o data hovers

    over the entire piece.

    But the key measure must be eectiveness, and the great

    majority o evidence points to the basic truth that digital

    channels operate ar better when synchronised. It is in this

    position o power, with their digital marketing working

    as one, that clients can maximise returns, reduce costs,

    minimise wasted time, eort and investment and it their

    marketing to their business goals.

    Thats a heady collection o potential achievements.

    Some single providers can oer the ull range o specialist

    disciplines and guarantee each will be managed with equal

    insight and experience. Many will oer them in the heat o a

    pitch and all short. Those that genuinely it the bill will be

    able to demonstrate:

    Capability

    Scale

    Performance

    The debate also needs to take in the question o uture-proong.

    The online landscape o tomorrow will only vaguely resemble

    todays digital space, as the web blurs into television and mobile,

    each o which will oer oshoots o the established online

    channels as well as new tools o their own.

    Brands simply cant aord to operate channel-by-channel and

    also space-by-space. That is why they will need at their disposal

    a small army o specialists who know how to march in step.

    Part Three:

    Conclusions

    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2

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    LBi/bigmouthmedia

    0845 130 0022 ino@bigmout hmedia.com @bigmouthmedia

    0207 063 6465 [email protected] @LBiLondon

    THANKS

    BLENDING: DIGITAL CHANNEL INTEGRATION

    When 1+1 is More Than 2

    This document is copyright o LBi and bigmouthmedia. We are very happy (and fattered, actually) or you to quote or

    reproduce the content (with a link please, i online) as long as you source it to LBi and/or bigmouthmedia and you dont

    reproduce it or any commercial purposes.

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