Marketing Campaign Management: Planning, Buying, and Analysis for the Successful Marketing of an Onl

1
Marketing Campaign ManagementPlanning, Buying,
and Analysis for the Successful Marketing of an
Online Subscription Business

• Scott Butler, MyFamily.com, Inc./Ancestry.com
• Martin Wesley, Atlas DMT/GoToast
• January 19-20, 2004

2
Overview of Discussion

• Business Models
• Media Models
• Planning
• Channel Development
• Messaging/Offers
• Testing
• Metrics

• Optimization
• Return
• Acquisition vs. Retention
• Questions and Answers

3
Business Models

• Subscription
• Subscription On Site Media Sales

4
Media Models

• Models
• CPM
• CPC
• CPA
• Hybrid

• Which model is right for my business today, and
  tomorrow?
• Where is the risk, and the reward?

5
CPM Media Model

• Cost per thousand impressions
• Publisher gets no ROI insight, only sees CTR.
• Creative and media/placement optimization
  paramount.
• RF/ incremental reach important.
• View through key metric.
• Long term buying model on web.

• Questions
• Do I need to buy CPMs?
• What are the pros and cons?
• Publisher has no risk.
• You have all the upside.
• Buy inventory you can sell to.
• Must have aggressive message and media
  optimization.
• Must have fast outs.

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CPC Media Models

• Cost per Click
• Publisher gets no ROI insight, only sees CTR.
• Creative and media optimization paramount to
  publisher for high click rates.
• High click rate creative and sites not a flawless
  indicator of purchase intent.
• RF/ incremental reach important at the click
  level.
• View through key metric as it is gravy you did
  not have to pay for.
• Is it a long term buying model on web?
• Research what the best click to conversion window
  is for you.
• 3RD party click tracking imperative.

• Questions
• What are the pros and cons?
• Is this a no brainer?
• Publisher carries more risk.
• Publisher is not optimizing against best metric
  CTR.
• High percentage of false clicks by bots.
• Must watch click to conversions
• Click is NOT indicator of purchase.

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CPA Media Model

• Cost per Action
• What is the action?
• Publisher has complete insight to your ROI
  metrics.
• This may hurt you ability to negotiate in the
  future.
• They know if it works for you, it will work for
  others in your space.
• Creative and media optimization paramount to
  publisher for high click rates.
• How much or how long our these customers buying
  my service?
• View through key metric as it is gravy you did
  not have to pay for, or do you?
• Is it a long term buying model on web?
• Research what the best click to conversion window
  is for you.

• Questions
• No risk at all for you? Maybe or maybe not.
• Publisher side optimization (i.e. MSN Performance
  Plus)
• How much information do we share with them?
• What are the reporting windows for click to
  conversion?
• Do we pay them on view through?
• What are these customer really worth to us long
  term?
• Are there two types of customers?
• One offs
• Long term
• How do I prevent paying 2, 3 or more times for
  the same customers?

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Hybrid Media Model

• Hybrid Model
• What is the action?
• Publisher has complete insight to your ROI
  metrics.
• This may hurt you ability to negotiate in the
  future.
• They know if it works for you, it will work for
  others in your space.
• Creative and media optimization paramount to
  publisher for high click rates.
• How much or how long our these customers buying
  my service?
• View through key metric as it is gravy you did
  not have to pay for, or do you?
• Is it a long term buying model on web?
• Research what the best click to conversion window
  is for you.

• Questions
• There is risk.
• Publisher side optimization (i.e.
  Advertising.com)
• How much information do we share with them?
• What are the reporting windows for click to
  conversion?
• Do we pay them on view through?
• What are these customer really worth to us long
  term?
• Are there two types of customers?
• One offs
• Long term
• How do I prevent paying 2, 3 or more times for
  the same customers?

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Behavior Based Planning

• How can you find your most profitable customers?

• Birds of a feather flock together

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Behavior Based Planning

• What does it take?
• Traffic greater than 10,000 unique visitors to a
  pages cookie list that you plan on searching for
• A common 3rd party ad server cookie that is used
  for outbound advertising as well as reporting on
  your site

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Channel Development

• Focus
• Focus on a single channel at a time, dedicating
  resources creates learnings faster.
• Negotiate
• Early on, half of your efficiency should come
  through negotiation and half through
  optimization.
• Scale
• The moment something works, scale it as quickly
  as you can while keeping the ROI in line. Dont
  be afraid of CPCs and CPMs.
• Growth
• Always be pursuing the next channel, possibly
  separating out new channel development from
  existing channel management in your organization.

• Channels
• Search Results Overture/Yahoo, Google, FindWhat,
  AOL, MSN, etc.
• Banners/Buttons and Text Links Ad networks,
  portals, content sites
• Pops Contextual marketing networks (WhenU,
  Claria, etc.)
• E-mail List publishers, managers, brokers (make
  sure you understand federal and state laws)
• Newsletters Add-ons to all other media buys
• Co-Registration High registration sites,
  networks (dont forget that precious phone
  number!)
• Content Distribution/Co-Branding Content sites,
  portals
• Affiliate Programs Find a provider and start
  growing your program

12
Messaging/Offers

• Multiple product offers
• Single Products vs. Product Bundles
• Free Trial vs. Hard Offer
• Free Trial Duration 1 day, 7 days, 30 days
• Free Gift with Purchase
• Fee Products vs. Free Products Those that truly
  understand the latter will experience the
  greatest growth if executed correctly.

• Multiple billing types
• Daily
• Monthly
• Quarterly
• Quarterly (Billed Monthly)
• Annual
• Annual (Billed Monthly)
• Pay-Per-View
• Free Trials Truly free vs. 1
• Cancellation Fees (learn from other industries)

Create as many options as you can for testing,
but manage what you show the customer.
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Testing

• Golden Rule of Testing
• Odds are, youre wrong.
• Guidelines
• Test placements first, then creative
  theme/design.
• Use testing not to create controls, but merely
  to inform your next test.
• Creative refreshes create bumps in channel
  performance and combat declining clickthrough and
  conversion rates (read they are necessary, not a
  luxury).
• Make sure you are doing at least 75 single
  variable testing.
• Variables Copy, Color, Theme, Call to Action,
  HTML vs. gif vs. rich media, Text vs. Graphical,
  Border
• When testing registration offers, differentiate
  between e-mail address, postal address, phone
  number, and all three at once.
• Place a lot of focus on testing and resource it
  appropriately (designers, traffickers, etc.) The
  ROI is far more efficient on testing than on the
  price of media.

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Metrics

• How will you measure your campaigns?
• In this presentation, this is the area that
  should be given the most forethought/ planning
  and which will yield the greatest return if
  executed correctly.
• Impressions, clicks, visitors, registrations,
  etc. are all necessary and important to monitor,
  but s has to be the final metric.
• Success is not just about driving customers, but
  about driving the right customers (well talk
  about how to figure out who the right customers
  are in a minute).

• Issues
• Tracking vs. Reporting Get one right to the get
  the other right, garbage in/garbage out.
• Data Make sure your data is being deduped and
  you are not double counting.
• Credit Decide the business rules for giving one
  channel credit vs. another.
• Time Decide on windows for viewthrough vs.
  clickthrough, but be careful what value you place
  on viewthrough.
• Costing Decide what you are willing to spend (or
  rather, what the market will tolerate) by
  channel. They will vary.

15
Optimization

• Metrics
• Understand your metrics and the desired business
  outcome.
• Technology
• Establish ROI metrics and then use the technology
  available to you (i.e. ad server, affiliate
  program mgt. tool, media optimizer, bid mgt.
  tool).
• Auto-Optimization
• It just saves time. Make sure your business
  rules drive the right metrics.

• Pixel Tracking
• Demand that the publisher pixel track (especially
  if they are an ad network).
• Entry Points
• Make sure you are bringing customers in via the
  right entry point to maximize conversion and then
  rely on your upsell/upgrade pathing to maximize
  ROI.
• Point of Sale
• Use the Web, use your Call Center, and then use
  both. Call Center conversion rate should be
  higher.

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Optimization

• Media Placement vs. Creative Theme/Design
• Which is more important in determining campaign
  performance?

• To test placement impact, we showed identical
  creative in different placements, then measured
  the conversions generated.
• To test creative theme impact, we showed ads with
  different creative templates (e.g., photography
  vs. cartoon imagery or promotional offers vs.
  product shots) in a single placement, then
  measured the conversions generated.
• To test creative design impact, we showed ads of
  similar creative themes, but with a single design
  variable modification (e.g., color or font) we
  then measured the number of conversions it
  generated.

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Optimization
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Return

• A lot of mistakes were made here early on, but we
  are still less than 10 years into Internet
  marketing.
• Customer LifecyleImpression ? Click ? Visitor ?
  Registration ? First Sale ? 30-Day Value ?
  Lifetime Value
• Use campaign ratios to measure success (CPA is a
  good proxy, but campaign ratio forces you to look
  at the most important metric).
• Move left-to-right on the customer life cycle
  above as quickly as you can (both in terms of
  measuring your campaigns and what you do with
  your customers!)
• Decide over what period of time you will measure
  customer lifetime value (proxies are needed
  here).
• Segment your lifetime values (or proxies) by
  entry point (product purchased, channel, partner,
  etc.)
• Incent your teams correctly (like a sales team).

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Acquisition vs. Retention

• Martin and I were asked to talk today about new
  customer acquisition. It is important to note
  that there are two entirely separate
  presentations that could be delivered here today
  on upselling/upgrading and retention. These two
  other pieces of the marketing mix are just as
  important as new customer acquisition and, if
  done correctly, drive new customer acquisition by
  increasing the lifetime value of the customer
  being acquired and the amount of money available
  to acquire that customer.

!
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Questions and Answers

• Questions?

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Contact Information

• Scott Butler
• Founder
• Sevven, LLC
• [phone]
• scott_at_sevven.com

• Martin Wesley
• Senior Director, Sales
• Atlas DMT
• [phone]
• martin.wesley_at_atlasdmt.com