Marketing Effectiveness Measurement replaces Budget Envy
-
Upload
paul-laughlin -
Category
Business
-
view
308 -
download
1
Transcript of Marketing Effectiveness Measurement replaces Budget Envy
Paul Laughlin, Managing Director, Laughlin Consultancy
Marketing Effectiveness Measurement replaces Budget Envy
#CAI2015
© Laughlin Consultancy Ltd, not to be used without permission.
Our digital goldrush
❖ How many Twitter Followers?
❖ How many Facebook Fans/Likes?
❖ Has your video ‘gone viral’ on YouTube?
❖ How many downloads of your latest app?
❖ How many site/blog visits?
❖ How many people saw your commercial?
❖ Are we being recommended?© Laughlin Consultancy Ltd, not to be used without
permission.
What a business should measure
❖ Turnover is vanity…
❖ ROI before investments
❖ Return On Marketing
Expenditure
© Laughlin Consultancy Ltd, not to be used without permission.
❖ ROME = ( ΔRevenue – ΔCosts) / ΔMarketing Spend
Measuring profit
© Laughlin Consultancy Ltd, not to be used without permission.
• Fully costed marketing
• Sales caused by marketing
• Historical data on sales from different levels of marketing spend
• Max increase in sales achievable by marketing
• Marketing spend needed to achieve 50% of max
• Gross margin on sales
• % of costs that are fixed
From “Marketing Payback” Robert Shaw & David Merrick:
Two types of Marketing
© Laughlin Consultancy Ltd, not to be used without permission.
• Brand building
• Awareness & Consideration
• Maintaining Share of Voice
• Social normally TTL (from LinkedIn ads to broadcast YouTube)
ATL
BTL
• Targeted communications
• Personalised & timed
• Driving action, often to buy
Econometrics for ATL
© Laughlin Consultancy Ltd, not to be used without permission.
• Statistical technique(s) to help assess which of many possible factors are key drivers of sales results, combine them in a quantitative model and then use to predict the future
• Business input
• Base
• Ad-stock
• ‘Halo effects’
You need insight
CustomerData
Customer Research
Customer Analysis
Database Marketing
Feel &Measure
TargetMarketing
ConvergeEvidence
© Laughlin Consultancy Ltd, not to be used without permission.
Marketing Attribution
© Laughlin Consultancy Ltd, not to be used without permission.
Incremental Modelled
FinancialReporting
Market Position
Media Tracking
Budget Allocation step 1❖ Annual Marketing budget:
❖ functional unit allocation
❖ share of revenue
allocation
❖ share of voice allocation
© Laughlin Consultancy Ltd, not to be used without permission.
❖ ‘Rightsize’ the budget
❖ Optimising ROME
Budget Allocation step 2
❖ Optimal allocation across:
❖ Products/Markets
❖ Brands
❖ Purchase Funnel
© Laughlin Consultancy Ltd, not to be used without permission.
❖ Comparing ROME contributions
❖ Consider evidence for media interdependencies
Credibility requires Accountability
❖ Use the language of profit
❖ Use ROME with Finance
❖ Converge evidence
❖ Rigorous budget allocation
© Laughlin Consultancy Ltd, not to be used without permission.
linkedin.com/in/paullaughlin
+44 (0)7446 958061
Contacting me:
customerinsightleader.com
laughlinconsultancy.com
@LaughlinPaul
© Laughlin Consultancy Ltd, not to be used without permission.