From Insight to Action - Kenshoo Webinar Featuring Forrester

1© 2014 Kenshoo, Inc. Confidential and Proprietary Information

From Insight to Action:

October 14, 2014

Executing Successful Cross-Channel Attribution and Optimization

#Insight2Action


Webinar Instructions

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Today’s Speakers

Tina Moffett

Analyst

Forrester

Doug Chavez

Global Head of Marketing Research & Content

Kenshoo

#Insight2Action


Agenda

• The Age of the Consumer

• Survey Findings

• Recommendations

• Power of Advanced Attribution Models

• Predictive Marketing Applications Beyond

Attribution

• Key Takeaways

• Q&A

#Insight2Action

© 2014 Forrester Research, Inc. Reproduction Prohibited 5

Agenda

› Empowered customers disrupt traditional measurement

› Cross-channel attribution is still in its infancy

› Organizations struggle to take action

› Marketers reap the attribution benefits

› Recommendations

#Insight2Action


Agenda





› Recommendations

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A 20-year business cycle in which the

most successful enterprises will

reinvent themselves to systematically

understand and serve increasingly

powerful customers

Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

The age of the customer

A 20-year business cycle in which the most successful enterprises will

reinvent themselves to systematically understand and serve increasingly

powerful customers

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In the age of the customer, individuals are always-addressable…

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And they create data at every interaction point

Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report

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But they do not trust traditional, campaign-based

marketing.

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Marketing as we know it is experiencing a shift.

Source: April 2014 “The Power Of Customer Context” Forrester report

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The spotlight is on measurement and analytics

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Agenda





› Recommendations

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What do we mean by cross-channel attribution?

Source: “Cross-Channel Attribution Presents a Clear Path to Marketing ROI” September 20, 2012

The practice of allocating proportional credit to all

marketing communications, across all channels,

that ultimately lead to the desired customer

action.

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Organizations leverage many channels to reach and grow customers

Digital channels dominate those measured

taking 8 of the top 10 spots

Base: 106 marketers, advertisers, and customer insight professionals

Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo,

April, 2014

“What channels are you currently using to

drive marketing and media objectives?

Which channels are included in

attribution measurement?”

Email marketing

Online display advertising

Referral marketing

Paid search advertising

Mass media

Mobile display advertising

Search engine optimization

Affiliate marketing

Paid social advertising

Behavioral targeting advertising

Magazines or newspapers

Online video

Owned social media

Retargeting

Mobile search

Mobile apps

Direct mail or catalogs

Other events

Currently using to drive marketing and media objectives

Included in attribution measurement

87%

82%

81%

78%

76%

76%

75%

75%

73%

72%

72%

71%

71%

70%

68%

67%

65%

65%

50%

53%

50%

55%

43%

41%

46%

43%

48%

43%

45%

45%

44%

40%

40%

44%

38%

37%

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Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014

But marketers still use basic attribution approaches to measure impact

77% of marketers

moved beyond single

touch attribution

“What specific approach do you use to calculate

cross-channel attribution?”

First or last touchpointreceives all attributed

credit

Predefined rule-based attribution

Self-defined business rules

Advanced or algorithmicattribution

23%

35%

31%

11%

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Few marketers measure cross-channel halo effects



24% of marketers

measure many channels

and campaigns

simultaneously

“How are you measuring channel and campaign

efficiency and effectiveness?”

41%

36%

24%

We measure each channeland campaign separately

We measure limited cross-channel and campaign effects

We simultaneously measuremany channels and campaigns

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Marketers seek measurement help from their partners



Only 15% of

marketers use

attribution

specialists

“Which vendor or partner do you currently use for

your attribution measurement efforts?”

My data management provider 17%

My marketing service provider 16%

My web analytics provider 15%

My attribution specialist 14%

My media buying platform 14%

My digital/direct response agency 10%

My tag management provider 8%

My bid management platform 5%

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Agenda





› Recommendations

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Marketers face many hurdles preventing actionable attribution insights

What are the TWO largest obstacles preventing you from taking greater action from your attribution

tool?



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Agencies labor to alter media plans based on attribution

What are the TWO largest obstacles preventing you from taking greater action from your attribution

tool?



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Agenda





› Recommendations

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Marketers want attribution to answer difficult questions



“When evaluating attribution output and results, how important do you find each of the following?”

44%

47%

42%

47%

41%

46%

42%

48%

55%

47%

51%

19%

20%

25%

21%

28%

24%

28%

25%

20%

29%

33%

Evaluating the time, cadence, and frequency of ads acrossthe purchase path

Inputting attribution results directly into real-time mediabidding engines to optimize spend

Analyzing the true impact of exposed vs. unexposedmarketing and media

Determining the value of your affiliate programs

Measuring the influence of one channel on another, such asdigital to offline conversions or display ads on paid search

Calculating % attributed credit by channel, campaign,program, and tactic level

Generating new customer insights based on path length, timebetween touch points, order of channels, etc.

Analyzing which search terms and/or publisher sites are themost impactful

Evaluating different creative, offers, or content versions

Measuring incremental sales generated by channel, purchasepaths, and/or touch points

Changing media buys based on prior attribution results andanalyze the impact

Very important Critically important

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Experience and greater channel measurement drives satisfaction



Marketers are Very

Satisfied with their current

measurement efforts and ability

to take action

“How satisfied are you with your . . .”

Completely satisfiedVery satisfied

46% 17%

49% 18%

Current measurement and insightsefforts for your marketing and

media channels?

Ability to take action on yourcurrent attribution results

and insights?

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Speed to action improves satisfaction



42% of marketers have the

processes and technologies to

act on their attributed results

several times a day.

“Once you have received your attributed values,

how quickly can you adjust media buys

based on the attribution results?”

In real time throughan automated process

(in less than 35 milliseconds)7%

A few hours, and results canchange several times a day

35%

About one day 19%

More than one day,but less than a week

11%

About a week or longer 28%

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Integration of attributed results into media buying platforms is desirable

Integrating advanced attribution into bid management platforms allows marketers to optimize their

digital spend without needing to make manual adjustments or monitor performance. If your

attribution tool was connected into your bid management platform, how likely would you be to use

it for at least portions of your media spend?



68% are very or completely likely

to use technologies that can

rapidly adjust digitally media

spends

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Agenda





› Recommendations

#Insight2Action


Source: A commissioned conducted by Forrester Consulting on behalf of Kenshoo, October 2014

› Build an attribution business case and get executive

sponsorship.

› Dig into your partners attribution approach.

› Connect attribution insights into media execution engines.

› Test and experiment new marketing and media strategies

to continually improve results.

Recommendations

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Thank youTina Moffett

+1 212.857.0769

[email protected]

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Attribution helps us determinewhere to allocate spendand how much to pay.

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Static attribution rules treat all opportunities the same.

Last Click Divide Evenly Time Decay U-Shaped

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Conversion

Online1 LAST CLICK

Conversion

in Store3 TIME

DECAY

100%

40%35%20%5%

Conversion

by Phone2 DIVIDE EVENLY

25%25%25%25%

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Last click is a very outdated model. You need to understand the customer’s full journey to increase conversion across the full funnel and give proper credit to each channel.”

— Online media director for an international educational software company

Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014

“

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Give credit where credit is due

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SOCIAL

SEARCH

RETARGETINGDISPLAY

EMAILPRODUCT

LISTING ADS

The world is dynamic. Not all customers or conversions are alike.

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Go from maze to model

Cheap DVD Players

Great Prices

electronics.com

Keyword 3Keyword 1

Top DVD Players

Great Prices

electronics.com

Best DVD Players

Great Prices

electronics.com

Keyword 2

Research/Awareness

40%Consideration

10% 12%Intent to Purchase/Convert

38%

Cheap DVD Players

Shop now atElectronics.com

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Savvy marketers get sharper and nimbler withattribution measurement

49% are adjusting long-term media plans

38% are changing media spend

34% are comparing campaign performance measures

23% are taking some action in real-time


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68% of marketers said they would be very likely or completely likely to use technology to directly integrate attributed results into media buying platforms, if they were available.


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Planning and measurement tools embedded into the

bidding platform

Go beyond measurement to insights and action across your programs

Optimized

Bidding

Multi-Channel

Measurement

& Attribution

Scenario Planning,

Forecasting

& Budget

Management

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Take advantage of every opportunity

Predictive technology that understands and learns your unique business

Event Driven

Performance

Predictive Media

Forecasting

Automated Bid

Optimization

Leave nothing on the table.

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Inform your optimizations with data

TV Commercial Seasonal Sale Snail Mail Campaign

I have a big promotion coming up. How can I let the algorithm know that the conversion volume will increase?

How can I see if my promotions impacted performance?

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If I knew how investment alternatives would pay out,I could boost performance.

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Challenge

Identify obtainable spend

and return levels

Solution

Scenario Planning

• Understand overall market potential

• Build forward-looking analysis

• Choose investment scenario

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Even when I feel comfortablewith a forecast, we still have tofind a way to act on it.

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Turn analysis into action

Challenge

Solution

Budget Pacing

• Translate predictions to strategy

• Apply changes across portfolio

• Repeat daily cycle

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Forecasting of an Entire

Portfolio Within Minutes

Unparalleled Accuracy in

Forecasting by Integration

with Dynamic Attribution

Budget Pacing Syncs with

Market-Leading Kenshoo

Portfolio Optimizer

Interface to Inform Engine of

Market, Seasonal or Offline

Events

Automated Alerts for Both

Opportunities and Threats

Leverage predictive marketing technology

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Key Takeaways

• Build an attribution business case and get executive sponsorship

• Dig into your partner’s attribution approach

• Connect attribution insights to media execution engines

• Test and experiment with new marketing and media strategies to

continually improve results

• Become a proactive marketing organization by applying the power

of predictive marketing in real-time to improve forecasting,

optimization, and attribution

#Insight2Action


Q&A

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Download the Study

Kenshoo.com/InsightToAction

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From Insight to Action - Kenshoo Webinar Featuring Forrester

Marketing

Transcript of From Insight to Action - Kenshoo Webinar Featuring Forrester