Measuring Performance in Advertising Effectiveness

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The 'Measuring Performance in Advertising Effectiveness' session by Jorge Ruiz at Neo@Ogilvy which took place at Performance Marketing Insights NYC on March 13, 2013.

Text of Measuring Performance in Advertising Effectiveness

  • 1. Neo@Ogilvy MeasuringPerformance in Advertising Effectiveness Jorge Ruiz
  • 2. Good Attribution helps fuel Performance Clients need assurances that our advertising performance is attributable yet attribution means many things to different people Digital Cross-Channel Attribution Attribution For how many days can I take credit for view- Which channels within my campaign drive based conversions? the best Brand Awareness / Intent lifts? Should I keep investing in placements that What is my optimal channel mix through to dont drive a lot of immediate conversions? sales? 2
  • 3. How we drive Performance through AttributionClient needs will drive where and how you start. Here is our approach: Ad-Exposure Cross-Media Research Dynamic Mix Modeling Cross- Channel Display Display Brand & Advanced Attribution (Algorithmic) View-through Test Behavior Lifts Digital Implement at Launch Roadmap when scale and budget affords 3
  • 4. Lets start with Digital Attribution 4
  • 5. You have to start by asking: Whither the click? Ample evidence that the View-Thru effect is incrementalIndustry POV Neo@Ogilvy Display View-thru Norms"The comScore norms data provide compelling empirical Category Pct Lift Optimal Windowsupport for the belief that there is a quantifiable view-thru Credit Cards +12% First 12 hoursimpact of online ad exposures on brand value and sales. Forthe studies in which both retailers online and offline sales Consumer Electronics +11% Same Daywere analyzed, for periods ranging from two weeks to three Insurance Personal +54% 1 daymonths after the initial exposure to an online display ad, theincremental online sales lift was 27 percent and offline sales Travel +42% 3 dayslift was 17 percent. * Trading Options +35% 7 days Trading Stock +28% 10 days Insurance - Auto +74% 15 days* http://www.comscore.com/Press_Events/Press_Releases/2008/11/Value_of_Online_Advertising 5
  • 6. Where possible, implement behavioral lift tests You can do this with any Ad-Server Audience segmentation or through a cookie-panel research partner 6
  • 7. To do Digital Attribution right you have to use a model with a hold-out group This is why an Algorithmic approach should be a standard Attribution for Medical Researchers Attribution for Marketing ResearchersMeasure the attributable survival rate of a lab mice Measure the attributable conversion rate of aexposed to multiple protein sequences consumer exposed to multiple media placements Cookie ID: 1234 Session ID: 5678 vs. mice that did not survive with same treatment vs. non-converters with same media placements Converters Incremental probability of true conversion weight Non-Converters 7
  • 8. Good attribution models fuel Performance Here is how we found growth placements, minimized low-performers First, help me attribute Digital placements then help me predict Search opportunity Banner Attribution by Ad ID 60 Old Rank: placements by # Last-Touch conversions 50 Abandoners# Conversions Attributed 40 Conversions Travel Endemic 30 Model Attribution LT Attribution 20 10 New Rank: placements by # Attributable conversions 0 Campaign Placements(by LT Attribution) # of Conversions) Ad ID Rank (Ranked by Each dot in this chart is a Placement from Model 1 30.0% 20.0% 10.0% 8 0.0%
  • 9. Going Beyond Digital into Cross-Channel 9
  • 10. A few Cross-Channel Effectiveness Methods Cross-Media Ad Effectiveness Studies Econometric Mix Models Typical output of cross-media work is to show what Mix Models are more useful for the broader, long- combination of media exposure can yield the term measurement of how spend over time biggest brand & Sales lifts influences activity An advantage is that it can go live with a new An advantage is that it can account for external campaign and scale up /down over time business factors and allow for solid financial simulations 10
  • 11. For measuring brand campaigns, cross-media can leverage latest research innovations For example, when running campaigns with Brand Awareness/Intent goals, cross- media results can tell you the right channel mix, but not always its total impact to salesKnown Impact Modeled Impact Total Impact (Campaign Incremental) Awareness Favor. P.I. 1 Channel 2 Channel Combo 3 Channel Combo 11
  • 12. Paid/Owned/Earned? Latest Mix models can take into account the indirect effect Old Models: linear solution New Models: Account for indirect consumer behavior New market mix models can better account and help break down the optimal for all the non-linear interactions effective contribution to a business goal love Paid Media * Beyond Fans and Tweets: Measuring the Impact of Social Media, The Stern Center for Measurable Marketing, NYU, Oct 2011 12
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