Digital Marketing May 22, 2014

Glen Urban Chairman, Center for Digital Business glurban@mit.edu

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Agenda

Historical perspective

Allocating funds between new and old media • Prospective Meta Marketing Analysis • Global experiments • Refined USA findings, new China and emerging Netherlands results

Networking break

Story telling – making social media more effective

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Last 5 years

Marketing and new technology and media

Web site morphing

Ad morphing

Benevolent apps

Social media – Dream Car Community

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Morphing Site Designs

Click descriptor Website

Bayesian update

Priors on distribution of decision styles

Updated user decision-style descriptor On-line

Optimization

Optimal morph for current user

Pgm: probability of purchase for individual in group g given morph m

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Side by Side Comparison

Morph 1 Morph 8

Visual

Technical Content

More Content

Audio

Less Content

General Content

6 Data

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Results

1,500+ person panel studies – A/B design

Increase consideration 25%

Probability of purchase 20% increase

Test on advertising at GM/AT&T

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Match ads to cognitive style

Real time experimentation, learning

Individual assignment

Not who to target, but how to talk to them

Visual-Details-Web Visual-NoDetails-Print

Visual-Details-Print

Verbal-NoDetails-Print Verbal-Details-Web

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

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Control (34.8%, n=155) Test (43.3%, n=404)**

** Results significant at α = 0.034

Chevrolet Consideration Measures consideration of Chevrolet by a participant for his or her next vehicle.

Lift of 24.4%

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Data Collection

Consumer Profiling

Targeting by Cognitive

Style Analysis of

Results

• Track clickstreams on CNET.com • Survey small segment to determine cognitive style

• Using MIT decisioning engine, determine cognitive style of cookies using clickstreams

• Remessage cookies on CBS ad network

• Morph AT&T banner messaging to cognitive style

• Measure lift in clickthrough rate behavior for morphed vs. unmorphed AT&T ads

Project Plan – AT&T Cnet

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Holistic - Deliberative Holistic - Impulsive

Analytic - Deliberative Analytic - Impulsive

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CNET Results

27,000 users and

63,000 sessions

CTR .25% TEST VS .13% CONTROL

Lift of 92% in click rate

Morphing works

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Introduction to DubbleWrap

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Conclusion: App Pre/Post

Consideration up 25%

Probability of purchase for rental insurance increases on average by 16%

LM Points allocation increases 84%

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Suruga Bank app “Dream Move” The app helps people choose a new home.

Information organization Setting

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A new app “Dream Move” This app also helps to understand a budget condition.

Comparison and Diagnosis Get an advice

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Results

Survey in Japan N = 1,500

Consideration (top 7 bank) from 8.4% to 16.8% or 2X

Improved brand ratings (significant at 1%): • Support for making my future financial plan • Believable advice or information • Technologically advanced

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Benevolent Apps

Benevolence can be effective in brand awareness and consideration

Improved Brand Image

Next study in evolution: Social Media and engagement thru apps

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Many Ways to Engage

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“Father and Son”

Exterior Interior

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Increase Consideration Apps Can increase consideration and strengthen brand relationships if consumers…

– Enjoy the app – Get involved and participate – Strong recall of who brought it to them – Can win and sample the auto with a drive

Surprise is that people not only design cars, but tell stories

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Today’s Presentations

New media effectiveness and budgeting advertising spending – Karen Ebben (GM)

BMW – Social media and effects of story telling – Sebastian Schwiening (BMW) and Renee Gosline (MIT)