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Roadmap for Success in 2010: !Interactive Strategy for Energy Marketers
August 2010
Steve Latham!@stevelatham
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Takeaways from MITO 2009 1. Online is a Must 2. Start with a Foundation
- Research, business case, strategy, metrics 3. Build on top of it
- Site usability - Branding - Communications - Interaction (engagement) - Integration
4. Business Case for Social Media 5. Pitfalls of Social Media (and how to avoid them) 6. Best (and Worst) Practices
View Online at http://bit.ly/MITO2009
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New Challenges for 2010
① Shift in focus: responding vs. brand-building ② Budgets are (still) tight ③ Information Overload (how to sift and prioritize?) ④ Work overload (too busy to plan?) ⑤ Measuring ROI
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What We’ll Cover Today
① Creating Demand for Your Brand
② How to think about paid, earned and owned media
③ Measuring results and calculating ROI ④ Best (and Worst) Practices
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Creating Demand for Your Brand
You can’t win by harvesting demand… You must create it.
To win customers, they must know: Who you are How you are uniquely positioned Why they should choose you
Success requires passage through the conversion funnel
Awareness Interest
(Consideration / Preference) Decision
$$$
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Creating Demand for Your Brand
Demand is best created by utilizing…
Paid Media Owned Media
Earned Media
Rules of thumb: Display and 3rd party email are best for creating awareness Search works best for capitalizing on awareness Social media does both, but reach may be a challenge
7 Attribution and ROI Measurement 7
The Solution (?)
There is no silver bullet
Success requires an integrated approach
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How Most View Online Media Mix*
Leads
Prospects
Sales
Social Networks, Blogs, Photos, Videos
Search Paid + Natural
E-Mail House & 3rd Party email
Display Rich, Flash,
Video, .Gif Ads
$$$
Mobile SMS, Sites, Apps, Ads
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How We Should View Online Media
Awareness
Interest (Consideration /
Preference)
Decision
$$$
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Display CPM/CPC/CPA
E-Mail CPM/CPA Social
???
Search CPC
Roles of Online Media
Stage Search Display Email Social Awareness Broad terms Targeted ads 3rd party
sends Follow
Interest Narrow terms Targeted ads Direct sends Like, Mention
Decision Branded terms
Retargeted ads
Targeted offers
Recs, Reviews
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Measuring Results
Direct KPIs Attributable results
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Direct KPIs
Basic Metrics Impressions Clicks Visits Page views
Engagement metrics Pages viewed per visit Time on site Goal Pages Registrations Transactions
Social Media Metrics Follows / Fans Likes / Comments Mentions Viewing content Sharing / Posting
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Decision cycles are not linear Users often make multiple before taking action Most “conversions” take place after multiple touches, e.g.:
• 5-7 impressions precede a visit • 2-3 visits precede an action
Credit usually attributed to last click Design limitation of analytics platforms Rewards Search Punishes Display, Email and Social
The Goal: Understand which touch points precede each action Assign value to those touch points (“Attribution Analysis”)
Attributing Credit: The New Imperative
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Sample Engagement Path
Display Vendor #1
Impression
Day: 0 30 15
Display Vendor #2
Impression
E-Mail 3rd party
Impression
Display Vendor #3
Impression
Paid Search
Category term
Visit
Organic Search
Brand / Geo
Visit
Direct Nav
Visit / Action
What we can measure via ad server and site analytics:
The “direct” lead was preceded by numerous ads - Without this insight, you may kill a smart media buy
The next BIG thing: incorporating Social engagement - Coming soon!
15 Attribution and ROI Measurement
Attributing Credit: Paid Media
Step 1 - Recast Actions* by Source (*actions = visit, conversion etc.) Quantify the number of touches that preceded each action Assign value to each touch point (e.g. 7 impressions = 1 click) Recast the number of touches and assign credit proportionally See a more accurate picture of Display’s impact on results
Lift: 300+%
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Attributing Credit: Paid Media (cont.)
Step 2 – Based on Recast Actions, calculate revised Cost Per Action for each Source
Drop: 70%+
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4. Translate Results Into Value
To measure ROI, you first have to calculate the value
Determine how Actions Intent (offline purchase)
Forecast how Intent $$$ Some % of those who show Intent will buy Do the math and apply across each set of actions Use common sense to normalize results
Action Value Site Visits Indicates awareness Goal Page Views Indicates consideration Long Visits Indicates consideration Conversions Indicates preference
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AWARENESS(Visits)
CONSIDERATION(Long Visits, Goal
page views)
PREFERENCE(Register)
Calculating ROI
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Worst & Best Practices in Energy Marketing
Worst Practices Best Practices One-off efforts Strategic Plan Hunting Fishing Shouting Listening and Interacting Limited Reach Building Networks Engaging like a marketer Becoming part of community Silo approach Integrated program Last-click analysis Attribution analysis Unrealistic Expectations Under-promise, Over-deliver Empire building Outsource to experts
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Thank You!
View this presentation online at http://bit.ly/MITO2010
Let’s stay in touch! Facebook.com/slatham Twitter @spurinteractive LinkedIn.com/in/stevelatham
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About the Presenter
Steve Latham is the founder and CEO of Spur Interactive, a strategic interactive marketing agency. In this role, Steve has planned and managed successful campaigns for leading brands, including ConocoPhillips, FedEx Kinko's, Continental Airlines and The Scooter Store, to name a few.
Steve is an accomplished industry lecturer and an active member of the business and non-profit community. Steve’s articles on interactive strategies have been published by MediaPost, iMedia Connection and Marketing News. He has been quoted in PR Week, Fortune and CNN.com.
Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma.
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