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Measuring
Marketing
Effectiveness -
What You Need to
Know!
September 2022
2 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
SHAUBHIK RAY
• Over 15 years of analytics leadership experience
• Currently Sr. Director, Digital Analytics at iQuanti and leads
the digital analytics practice
• Focuses on developing and implementing digital analytics
solutions for clients, with a focus on financial services and
retail
• Previously, worked at Oracle and Tableau
3 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
1 What, Why and How of Marketing Effectiveness
Today we’ll discuss…
2 Different Measurement Techniques Available to Marketers
3 Pros & Cons of Each Measurement Technique
4 Selecting the Right Measurement Technique for Your Business
4 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
The great marketing (advertising) conundrum!
5 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
What, Why and How of Marketing
Effectiveness!
Evolution of automation and its impact
6 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Importance of measuring your marketing effectiveness
Optimize Marketing Performance
7 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Importance of measuring your marketing effectiveness
Optimize Marketing Performance
Optimize Marketing Budget
8 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Importance of measuring your marketing effectiveness
Optimize Marketing Performance
Optimize Marketing Budget
Improve Business Performance
9 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Why is it difficult to track marketing effectiveness?
10 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Why is it difficult to track marketing effectiveness?
External Factors
 Consumers’ path to purchase is becoming longer
 The privacy landscape has changed
 Type of data available
11 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Why is it difficult to track marketing effectiveness?
External Factors
 Consumers’ path to purchase is becoming longer
 The privacy landscape has changed
 Type of data available
Internal Factors
 Inability to collect data
 Data Silos
 Data disconnected
12 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Consumers see a lot of ads on their path to purchase
13 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
The changing privacy landscape is having
a dramatic impact on the digital marketing
eco-system
14 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
The continued focus on privacy is leading to changes in the legal and technology
landscape
15 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Changing customer mindset
The continued focus on privacy is leading to changes in the legal and technology
landscape
16 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Changing customer mindset
Privacy regulations – GDPR, CCPA,
etc.
The continued focus on privacy is leading to changes in the legal and technology
landscape
17 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Changing customer mindset
Privacy regulations – GDPR, CCPA,
etc.
Privacy changes from key players -
Google & Apple
The continued focus on privacy is leading to changes in the legal and technology
landscape
18 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Changing customer mindset
Privacy regulations – GDPR, CCPA,
etc.
Privacy changes from key players -
Google & Apple
The continued focus on privacy is leading to changes in the legal and technology
landscape
*Source: AppsFlyer, Adage, CNBC
Impact of third-party cookie deprecation
• Nearly 85% of the top 1,000 sites have cookies set by a third
party, which will be ineffective
• Estimated revenue loss of $10B for publishers
19 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Changing customer mindset
Privacy regulations – GDPR, CCPA,
etc.
Privacy changes from key players -
Google & Apple
The continued focus on privacy is leading to changes in the legal and technology
landscape
*Source: AppsFlyer, Adage, CNBC
Impact of third-party cookie deprecation
• Nearly 85% of the top 1,000 sites have cookies set by a third
party, which will be ineffective
• Estimated revenue loss of $10B for publishers
Impact of Apple’s ATT feature
• With App Tracking Transparency (ATT), 63% of US customers
will actively opt to be not tracked
• Estimated revenue loss of $10B for Facebook in 2022
20 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Richness and Quality of data
Type of data available, varies by the channel
*Source: AppsFlyer, Adage, CNBC
21 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Richness and Quality of data
Granularity of data
Type of data available, varies by the channel
*Source: AppsFlyer, Adage, CNBC
22 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Richness and Quality of data
Granularity of data
Frequency of data
Type of data available, varies by the channel
*Source: AppsFlyer, Adage, CNBC
23 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
A QUICK POLL:
How well are you able to measure your marketing effectiveness?
a. Very effectively
b. Slightly effectively
c. Not effectively
d. Not sure (Mark this if you need consult or help with selecting the right approach)
24 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
How to measure marketing effectiveness?
25 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Defining and tracking the right metrics is important in measuring the marketing
effectiveness
26 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Defining and tracking the right metrics is important in measuring the marketing
effectiveness
Create KPI Framework to identify the important business KPIs
27 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Defining and tracking the right metrics is important in measuring the marketing
effectiveness
Create KPI Framework to identify the important business KPIs
Design a solution to accurately capture the business KPIs
28 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Defining and tracking the right metrics is important in measuring the marketing
effectiveness
Create KPI Framework to identify the important business KPIs
Design a solution to accurately capture the business KPIs
Standardize channel data collection
29 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Develop a structured approach to identify what marketing KPIs should be
collected for measuring business success
Measure Description Frequency Audience
30 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Develop a structured approach to identify what marketing KPIs should be
collected for measuring business success
Measure Description Frequency Audience
Focus
Area
Focus Areas serve as qualitative signposts to
guide a team through its mission
Ex. Increase acquisition through digital
• Annually
• Marketing Leadership
• Business / Product / Sales
Leadership
31 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Develop a structured approach to identify what marketing KPIs should be
collected for measuring business success
Measure Description Frequency Audience
Focus
Area
Focus Areas serve as qualitative signposts to
guide a team through its mission
Ex. Increase acquisition through digital
• Annually
• Marketing Leadership
• Business / Product / Sales
Leadership
Goals
Goals quantify what success for each focus
area looks like
Ex. Grow digital attribution by x%
• Annually
• Quarterly
• Marketing Leadership
• Business / Product / Sales
Leadership
• Marketing Strategy
32 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Develop a structured approach to identify what marketing KPIs should be
collected for measuring business success
Measure Description Frequency Audience
Focus
Area
Focus Areas serve as qualitative signposts to
guide a team through its mission
Ex. Increase acquisition through digital
• Annually
• Marketing Leadership
• Business / Product / Sales
Leadership
Goals
Goals quantify what success for each focus
area looks like
Ex. Grow digital attribution by x%
• Annually
• Quarterly
• Marketing Leadership
• Business / Product / Sales
Leadership
• Marketing Strategy
KPIs
KPls measure the health of the business
Ex. Increase # of clients sourced via digital
channels by x%
• Quarterly
• Monthly
• Marketing Strategy
• Channel Leads
33 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Develop a structured approach to identify what marketing KPIs should be
collected for measuring business success
Measure Description Frequency Audience
Focus
Area
Focus Areas serve as qualitative signposts to
guide a team through its mission
Ex. Increase acquisition through digital
• Annually
• Marketing Leadership
• Business / Product / Sales
Leadership
Goals
Goals quantify what success for each focus
area looks like
Ex. Grow digital attribution by x%
• Annually
• Quarterly
• Marketing Leadership
• Business / Product / Sales
Leadership
• Marketing Strategy
KPIs
KPls measure the health of the business
Ex. Increase # of clients sourced via digital
channels by x%
• Quarterly
• Monthly
• Marketing Strategy
• Channel Leads
• Content Leads
Metrics
Metrics measure performance across
identified KPls
Ex. # of clients sourced via Contact Me
• Monthly
• Weekly
• Channel Leads
• Team Operational Managers
34 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Standardize campaign tracking, enabling campaign/channel attribution
35 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Standardize campaign tracking, enabling campaign/channel attribution
Campaign Tagging Framework
Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your
reporting capabilities
36 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Standardize campaign tracking, enabling campaign/channel attribution
Campaign Tagging Framework
Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your
reporting capabilities
Campaign Naming Convention
• Campaign Framework Standardization - UTM Campaigns are defined to meet the reporting need of attributing
conversions to individual campaign initiatives
• UTM Campaign Encoding - Campaign meta-data may be encoded to ensure that the campaign audience does not get
exposed to tracking granularity
37 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Standardize campaign tracking, enabling campaign/channel attribution
Campaign Tagging Framework
Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your
reporting capabilities
Campaign Naming Convention
• Campaign Framework Standardization - UTM Campaigns are defined to meet the reporting need of attributing
conversions to individual campaign initiatives
• UTM Campaign Encoding - Campaign meta-data may be encoded to ensure that the campaign audience does not get
exposed to tracking granularity
Roll-out of Campaign Tracker
Tool Setup
• Templatizing the UTM tool as per the aligned framework
• Training and office hours to facilitate adoption
Governance
• UTM reporting to monitor deviations
• Co-ordinating with campaign channel partners to confirm
38 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Leveraging Google’s Enhanced Conversions to make conversion tracking more
accurate
39 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Using CAPI to solve challenges with existing browser data as well as preparing
for cookieless future and safeguarding data-driven marketing
CAPI
Data Flow
CAPI bypasses web
browsers to send website
data to Ad platforms like
FB thereby being
unaffected by Ad blockers
or cookie deletions
Conversions API events are similar to and should be thought of in the same way as, standard and custom pixel events. For Example, Conversions
API events:
• Are used for the same ad optimizations as pixel events (example: Conversion Optimization, Value Optimization)
• Show up on all the same surfaces as pixel events (example: Ads Manager, Events Manager, Off-Facebook Activity)
• Follow all the same restrictions as the pixel (requiring advertisers to accept the Facebook Business Tools Terms, respecting Online
Behavioral Advertising (OBA) opt-out, and appearing in Off-Facebook Activity)
40 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
A QUICK POLL:
Do you have a data foundation in place to capture, and analyze your
marketing data?
a. Yes
b. Development in Process
c. Planned
d. Not Yet
41 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Different measurement techniques available
to marketers!
Measurement Techniques
42 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Advanced techniques for measuring effectiveness
Attribution
Media-Mix
Modelling
Incrementality
43 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Metrics for measuring marketing spend
44 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Metrics for measuring marketing spend
Cost Per Acquisition (CPA)
Spend
Acquisitions
100
10,000
CPA: $10,000/100 = $100
45 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Metrics for measuring marketing spend
Cost Per Acquisition (CPA)
Cost Per Incremental
Acquisition (CPIA)
Spend
Acquisitions
100
10,000
CPA: $10,000/100 = $100
Spend
Acquisitions
50
10,000
CPIA: $10,000/50 = $200
46 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Metrics for measuring marketing spend
Cost Per Acquisition (CPA)
Cost Per Incremental
Acquisition (CPIA)
Marginal Cost Per
Acquisition (MCPA)
Spend
Acquisitions
100
10,000
CPA: $10,000/100 = $100
Spend
Acquisitions
50
10,000
CPIA: $10,000/50 = $200
Spend
Acquisitions
MCPA: $1,000/4 = $250
47 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Digital Attribution
The science of assigning credit to each marketing touch point of the customer journey based on that touch
point’s influence on their ultimate conversion decision.
YouTube Facebook Organic Conversion
Facebook Google Shopping
DIRECT Conversion
Facebook DIRECT DIRECT
YouTube Conversion
Facebook ORGANIC
EXIT
EXIT
YouTube Facebook Google Shopping
48 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Digital Attribution
YouTube Facebook Organic Conversion
Facebook Google Shopping
DIRECT Conversion
Facebook DIRECT DIRECT
YouTube Conversion
Facebook ORGANIC
EXIT
EXIT
YouTube Facebook Google Shopping
Advertising Channel Attributed
Credit
YouTube 20%
Google Shopping 45%
Facebook 35%
The science of assigning credit to each marketing touch point of the customer journey based on that touch
point’s influence on their ultimate conversion decision.
49 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Entire customer lists
or all online
conversions leveraged
for building similar
audiences, no
prioritization based
on profitability
There are different approaches to digital attribution
50 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Entire customer lists
or all online
conversions leveraged
for building similar
audiences, no
prioritization based
on profitability
• First Touch
• Last Touch
• Linear
• Time Decay
Rule Based Attribution
There are different approaches to digital attribution
51 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Entire customer lists
or all online
conversions leveraged
for building similar
audiences, no
prioritization based
on profitability
• First Touch
• Last Touch
• Linear
• Time Decay
Rule Based Attribution
There are different approaches to digital attribution
• Markov Chain
• Shapley Value
Algorithmic Attribution
52 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Entire customer lists
or all online
conversions leveraged
for building similar
audiences, no
prioritization based
on profitability
Common challenges with digital attribution
User Tracking
Double Counting of
Conversion
Offline Activities (Events)
Offline Conversion Only CPA Available
53 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality: Proving cause and effect
Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits,
conversions, revenue) that resulted due to a marketing intervention
54 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality: Proving cause and effect
Randomize Groups
Test
Control
Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits,
conversions, revenue) that resulted due to a marketing intervention
55 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality: Proving cause and effect
Randomize Groups
Test
Control
Deliver Ads
Facebook
Ads
No Facebook
Ads
Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits,
conversions, revenue) that resulted due to a marketing intervention
56 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality: Proving cause and effect
Randomize Groups
Test
Control
Deliver Ads
Facebook
Ads
No Facebook
Ads
Track Sales Outcomes
Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits,
conversions, revenue) that resulted due to a marketing intervention
57 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality: Proving cause and effect
Randomize Groups
Test
Control
Deliver Ads
Facebook
Ads
No Facebook
Ads
Track Sales Outcomes Analyze Lift
Compare differences
between groups to
determine the ‘lift’
Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits,
conversions, revenue) that resulted due to a marketing intervention
58 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality testing approaches
* https://peertopeermarketing.co
59 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality testing approaches
* https://peertopeermarketing.co
User Level
60 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Incrementality testing approaches
* https://peertopeermarketing.co
User Level Geo Level
61 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Challenges in incrementality testing
Creating a test and
control group
Optimal test duration External factors
62 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Media Mix Modeling
Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship
between a pre-defined KPI like sales and the factors that influence them
63 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Media Mix Modeling
Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship
between a pre-defined KPI like sales and the factors that influence them
Marketing Investment
Offline Channels
Online Channels
Other Promotions
TV Radio PR
Website Paid Ads Display
Social Email Video
Internal
Ads
Coupons
64 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Media Mix Modeling
Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship
between a pre-defined KPI like sales and the factors that influence them
Marketing Investment
Offline Channels
Online Channels
Other Promotions
TV Radio PR
Website Paid Ads Display
Social Email Video
Internal
Ads
Coupons
Other Drivers/Factors
External Factors
Economy Seasonality Competition
Price New Products Distribution
Product Drivers
65 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Media Mix Modeling
Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship
between a pre-defined KPI like sales and the factors that influence them
Marketing Investment
Offline Channels
Online Channels
Other Promotions
TV Radio PR
Website Paid Ads Display
Social Email Video
Internal
Ads
Coupons
Other Drivers/Factors
External Factors
Economy Seasonality Competition
Price New Products Distribution
Product Drivers
Media Mix Model
Channel Importance
Scenario Planner
66 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Defining the baseline and contribution of various marketing channels to the
business goal
• Find the baseline performance i.e. the business performance expected in the absence of any marketing activities
• Measure the incremental contribution of each media channel to the business KPIs
67 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display
Using Ad Stock to assess ‘Memory Affect’ of marketing channels
• Ad Stock analysis helps in understanding the lag that an ad on a specific media channel has on a consumer’s behaviour
68 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Benefits of Marketing Mix Modeling
69 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Benefits of Marketing Mix Modeling
Privacy Friendly
• Uses aggregate data Vs. User-level data
• Not impacted by the loss of digital data
70 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Benefits of Marketing Mix Modeling
Privacy Friendly
• Uses aggregate data Vs. User-level data
• Not impacted by the loss of digital data
Holistic
• Considers online and offline channels
• Considers non-marketing activities (events)
• Considers external and competitive factors
71 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Benefits of Marketing Mix Modeling
Privacy Friendly
• Uses aggregate data Vs. User-level data
• Not impacted by the loss of digital data
Holistic
• Considers online and offline channels
• Considers non-marketing activities (events)
• Considers external and competitive factors
Flexible
• Adjusts based on the business types
• Can factor various business KPIs
72 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Entire customer lists
or all online
conversions leveraged
for building similar
audiences, no
prioritization based
on profitability
Common challenges with media mix modeling
Limited amount of data
Limited range of data
Correlated input variable
Selection bias
73 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Pros & Cons of each measurement technique
Comparing various techniques
74 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Pros & Cons of Multi-Touch Attribution technique
Pros
• Very easy to understand
• Can be used for digital ad optimization
Cons
• Only applicable to online channels
• Unable to account for ad impressions
• Cannot be used for full media portfolio planning
75 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Pros & Cons of Incrementality technique
Pros
• Gold standard for understanding the incremental value of marketing
• Can be easily implemented on most of the ad platforms
Cons
• There is an ‘opportunity cost’ of not marketing to the control group
• Can only measure one or two interventions at a time
• Results are valid point in time
76 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Pros & Cons of Media Mix Modeling technique
Pros
• Considers all media channels and non-media factors
• Can be used for full media portfolio planning
Cons
• Model results are highly dependent on the quality of inputs
• Requires many years of data
• Cannot be used for ad optimization
• May be difficult to understand
77 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Selecting the right measurement technique
Selecting the right measurement technique
for your business
78 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Programmatic Display Programmatic Display Programmatic Display
Factors to consider while selecting the right measurement technique
Availability of Data
• Is the data foundation in place?
• Availability of historical data and granularity of data
Availability of Resources
• What’s the current tech stack for measurement?
• Access to skilled resources
The Use Case
• Primary objective of the analysis
• Industry and the customer journeys (Path to conversion)
79 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
A QUICK POLL:
After today, do you feel more ready than before to measure marketing
effectiveness?
a. Definitely
b. Somewhat
c. Not really
d. Let’s talk! (mark this if you would like a consult or help with assessing your marketing effectiveness)
80 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Q&A
81 This document and the information in it are provided in confidence, and may not be disclosed to any third party.
Bangalore
Singapore
London
Toronto
New York
Chicago
San Francisco
Mexico City
Thank You!
Shaubhik Ray
Sr.Director, Digital Analytics
Shaubhik.R@iquanti.com

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Measuring Marketing Effectiveness: What You Need To Know

  • 1. Measuring Marketing Effectiveness - What You Need to Know! September 2022
  • 2. 2 This document and the information in it are provided in confidence, and may not be disclosed to any third party. SHAUBHIK RAY • Over 15 years of analytics leadership experience • Currently Sr. Director, Digital Analytics at iQuanti and leads the digital analytics practice • Focuses on developing and implementing digital analytics solutions for clients, with a focus on financial services and retail • Previously, worked at Oracle and Tableau
  • 3. 3 This document and the information in it are provided in confidence, and may not be disclosed to any third party. 1 What, Why and How of Marketing Effectiveness Today we’ll discuss… 2 Different Measurement Techniques Available to Marketers 3 Pros & Cons of Each Measurement Technique 4 Selecting the Right Measurement Technique for Your Business
  • 4. 4 This document and the information in it are provided in confidence, and may not be disclosed to any third party. The great marketing (advertising) conundrum!
  • 5. 5 This document and the information in it are provided in confidence, and may not be disclosed to any third party. What, Why and How of Marketing Effectiveness! Evolution of automation and its impact
  • 6. 6 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Importance of measuring your marketing effectiveness Optimize Marketing Performance
  • 7. 7 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Importance of measuring your marketing effectiveness Optimize Marketing Performance Optimize Marketing Budget
  • 8. 8 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Importance of measuring your marketing effectiveness Optimize Marketing Performance Optimize Marketing Budget Improve Business Performance
  • 9. 9 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Why is it difficult to track marketing effectiveness?
  • 10. 10 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Why is it difficult to track marketing effectiveness? External Factors  Consumers’ path to purchase is becoming longer  The privacy landscape has changed  Type of data available
  • 11. 11 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Why is it difficult to track marketing effectiveness? External Factors  Consumers’ path to purchase is becoming longer  The privacy landscape has changed  Type of data available Internal Factors  Inability to collect data  Data Silos  Data disconnected
  • 12. 12 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Consumers see a lot of ads on their path to purchase
  • 13. 13 This document and the information in it are provided in confidence, and may not be disclosed to any third party. The changing privacy landscape is having a dramatic impact on the digital marketing eco-system
  • 14. 14 This document and the information in it are provided in confidence, and may not be disclosed to any third party. The continued focus on privacy is leading to changes in the legal and technology landscape
  • 15. 15 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Changing customer mindset The continued focus on privacy is leading to changes in the legal and technology landscape
  • 16. 16 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. The continued focus on privacy is leading to changes in the legal and technology landscape
  • 17. 17 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple The continued focus on privacy is leading to changes in the legal and technology landscape
  • 18. 18 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple The continued focus on privacy is leading to changes in the legal and technology landscape *Source: AppsFlyer, Adage, CNBC Impact of third-party cookie deprecation • Nearly 85% of the top 1,000 sites have cookies set by a third party, which will be ineffective • Estimated revenue loss of $10B for publishers
  • 19. 19 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Changing customer mindset Privacy regulations – GDPR, CCPA, etc. Privacy changes from key players - Google & Apple The continued focus on privacy is leading to changes in the legal and technology landscape *Source: AppsFlyer, Adage, CNBC Impact of third-party cookie deprecation • Nearly 85% of the top 1,000 sites have cookies set by a third party, which will be ineffective • Estimated revenue loss of $10B for publishers Impact of Apple’s ATT feature • With App Tracking Transparency (ATT), 63% of US customers will actively opt to be not tracked • Estimated revenue loss of $10B for Facebook in 2022
  • 20. 20 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Richness and Quality of data Type of data available, varies by the channel *Source: AppsFlyer, Adage, CNBC
  • 21. 21 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Richness and Quality of data Granularity of data Type of data available, varies by the channel *Source: AppsFlyer, Adage, CNBC
  • 22. 22 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Richness and Quality of data Granularity of data Frequency of data Type of data available, varies by the channel *Source: AppsFlyer, Adage, CNBC
  • 23. 23 This document and the information in it are provided in confidence, and may not be disclosed to any third party. A QUICK POLL: How well are you able to measure your marketing effectiveness? a. Very effectively b. Slightly effectively c. Not effectively d. Not sure (Mark this if you need consult or help with selecting the right approach)
  • 24. 24 This document and the information in it are provided in confidence, and may not be disclosed to any third party. How to measure marketing effectiveness?
  • 25. 25 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Defining and tracking the right metrics is important in measuring the marketing effectiveness
  • 26. 26 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Defining and tracking the right metrics is important in measuring the marketing effectiveness Create KPI Framework to identify the important business KPIs
  • 27. 27 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Defining and tracking the right metrics is important in measuring the marketing effectiveness Create KPI Framework to identify the important business KPIs Design a solution to accurately capture the business KPIs
  • 28. 28 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Defining and tracking the right metrics is important in measuring the marketing effectiveness Create KPI Framework to identify the important business KPIs Design a solution to accurately capture the business KPIs Standardize channel data collection
  • 29. 29 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Develop a structured approach to identify what marketing KPIs should be collected for measuring business success Measure Description Frequency Audience
  • 30. 30 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Develop a structured approach to identify what marketing KPIs should be collected for measuring business success Measure Description Frequency Audience Focus Area Focus Areas serve as qualitative signposts to guide a team through its mission Ex. Increase acquisition through digital • Annually • Marketing Leadership • Business / Product / Sales Leadership
  • 31. 31 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Develop a structured approach to identify what marketing KPIs should be collected for measuring business success Measure Description Frequency Audience Focus Area Focus Areas serve as qualitative signposts to guide a team through its mission Ex. Increase acquisition through digital • Annually • Marketing Leadership • Business / Product / Sales Leadership Goals Goals quantify what success for each focus area looks like Ex. Grow digital attribution by x% • Annually • Quarterly • Marketing Leadership • Business / Product / Sales Leadership • Marketing Strategy
  • 32. 32 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Develop a structured approach to identify what marketing KPIs should be collected for measuring business success Measure Description Frequency Audience Focus Area Focus Areas serve as qualitative signposts to guide a team through its mission Ex. Increase acquisition through digital • Annually • Marketing Leadership • Business / Product / Sales Leadership Goals Goals quantify what success for each focus area looks like Ex. Grow digital attribution by x% • Annually • Quarterly • Marketing Leadership • Business / Product / Sales Leadership • Marketing Strategy KPIs KPls measure the health of the business Ex. Increase # of clients sourced via digital channels by x% • Quarterly • Monthly • Marketing Strategy • Channel Leads
  • 33. 33 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Develop a structured approach to identify what marketing KPIs should be collected for measuring business success Measure Description Frequency Audience Focus Area Focus Areas serve as qualitative signposts to guide a team through its mission Ex. Increase acquisition through digital • Annually • Marketing Leadership • Business / Product / Sales Leadership Goals Goals quantify what success for each focus area looks like Ex. Grow digital attribution by x% • Annually • Quarterly • Marketing Leadership • Business / Product / Sales Leadership • Marketing Strategy KPIs KPls measure the health of the business Ex. Increase # of clients sourced via digital channels by x% • Quarterly • Monthly • Marketing Strategy • Channel Leads • Content Leads Metrics Metrics measure performance across identified KPls Ex. # of clients sourced via Contact Me • Monthly • Weekly • Channel Leads • Team Operational Managers
  • 34. 34 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Standardize campaign tracking, enabling campaign/channel attribution
  • 35. 35 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Standardize campaign tracking, enabling campaign/channel attribution Campaign Tagging Framework Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your reporting capabilities
  • 36. 36 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Standardize campaign tracking, enabling campaign/channel attribution Campaign Tagging Framework Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your reporting capabilities Campaign Naming Convention • Campaign Framework Standardization - UTM Campaigns are defined to meet the reporting need of attributing conversions to individual campaign initiatives • UTM Campaign Encoding - Campaign meta-data may be encoded to ensure that the campaign audience does not get exposed to tracking granularity
  • 37. 37 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Standardize campaign tracking, enabling campaign/channel attribution Campaign Tagging Framework Define a UTM framework and enable teams to follow standardized conventions that in turn will strengthen your reporting capabilities Campaign Naming Convention • Campaign Framework Standardization - UTM Campaigns are defined to meet the reporting need of attributing conversions to individual campaign initiatives • UTM Campaign Encoding - Campaign meta-data may be encoded to ensure that the campaign audience does not get exposed to tracking granularity Roll-out of Campaign Tracker Tool Setup • Templatizing the UTM tool as per the aligned framework • Training and office hours to facilitate adoption Governance • UTM reporting to monitor deviations • Co-ordinating with campaign channel partners to confirm
  • 38. 38 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Leveraging Google’s Enhanced Conversions to make conversion tracking more accurate
  • 39. 39 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Using CAPI to solve challenges with existing browser data as well as preparing for cookieless future and safeguarding data-driven marketing CAPI Data Flow CAPI bypasses web browsers to send website data to Ad platforms like FB thereby being unaffected by Ad blockers or cookie deletions Conversions API events are similar to and should be thought of in the same way as, standard and custom pixel events. For Example, Conversions API events: • Are used for the same ad optimizations as pixel events (example: Conversion Optimization, Value Optimization) • Show up on all the same surfaces as pixel events (example: Ads Manager, Events Manager, Off-Facebook Activity) • Follow all the same restrictions as the pixel (requiring advertisers to accept the Facebook Business Tools Terms, respecting Online Behavioral Advertising (OBA) opt-out, and appearing in Off-Facebook Activity)
  • 40. 40 This document and the information in it are provided in confidence, and may not be disclosed to any third party. A QUICK POLL: Do you have a data foundation in place to capture, and analyze your marketing data? a. Yes b. Development in Process c. Planned d. Not Yet
  • 41. 41 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Different measurement techniques available to marketers! Measurement Techniques
  • 42. 42 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Advanced techniques for measuring effectiveness Attribution Media-Mix Modelling Incrementality
  • 43. 43 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Metrics for measuring marketing spend
  • 44. 44 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Metrics for measuring marketing spend Cost Per Acquisition (CPA) Spend Acquisitions 100 10,000 CPA: $10,000/100 = $100
  • 45. 45 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Metrics for measuring marketing spend Cost Per Acquisition (CPA) Cost Per Incremental Acquisition (CPIA) Spend Acquisitions 100 10,000 CPA: $10,000/100 = $100 Spend Acquisitions 50 10,000 CPIA: $10,000/50 = $200
  • 46. 46 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Metrics for measuring marketing spend Cost Per Acquisition (CPA) Cost Per Incremental Acquisition (CPIA) Marginal Cost Per Acquisition (MCPA) Spend Acquisitions 100 10,000 CPA: $10,000/100 = $100 Spend Acquisitions 50 10,000 CPIA: $10,000/50 = $200 Spend Acquisitions MCPA: $1,000/4 = $250
  • 47. 47 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Digital Attribution The science of assigning credit to each marketing touch point of the customer journey based on that touch point’s influence on their ultimate conversion decision. YouTube Facebook Organic Conversion Facebook Google Shopping DIRECT Conversion Facebook DIRECT DIRECT YouTube Conversion Facebook ORGANIC EXIT EXIT YouTube Facebook Google Shopping
  • 48. 48 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Digital Attribution YouTube Facebook Organic Conversion Facebook Google Shopping DIRECT Conversion Facebook DIRECT DIRECT YouTube Conversion Facebook ORGANIC EXIT EXIT YouTube Facebook Google Shopping Advertising Channel Attributed Credit YouTube 20% Google Shopping 45% Facebook 35% The science of assigning credit to each marketing touch point of the customer journey based on that touch point’s influence on their ultimate conversion decision.
  • 49. 49 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability There are different approaches to digital attribution
  • 50. 50 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability • First Touch • Last Touch • Linear • Time Decay Rule Based Attribution There are different approaches to digital attribution
  • 51. 51 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability • First Touch • Last Touch • Linear • Time Decay Rule Based Attribution There are different approaches to digital attribution • Markov Chain • Shapley Value Algorithmic Attribution
  • 52. 52 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability Common challenges with digital attribution User Tracking Double Counting of Conversion Offline Activities (Events) Offline Conversion Only CPA Available
  • 53. 53 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality: Proving cause and effect Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits, conversions, revenue) that resulted due to a marketing intervention
  • 54. 54 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality: Proving cause and effect Randomize Groups Test Control Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits, conversions, revenue) that resulted due to a marketing intervention
  • 55. 55 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality: Proving cause and effect Randomize Groups Test Control Deliver Ads Facebook Ads No Facebook Ads Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits, conversions, revenue) that resulted due to a marketing intervention
  • 56. 56 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality: Proving cause and effect Randomize Groups Test Control Deliver Ads Facebook Ads No Facebook Ads Track Sales Outcomes Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits, conversions, revenue) that resulted due to a marketing intervention
  • 57. 57 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality: Proving cause and effect Randomize Groups Test Control Deliver Ads Facebook Ads No Facebook Ads Track Sales Outcomes Analyze Lift Compare differences between groups to determine the ‘lift’ Incrementality in marketing is the lift or increase in the desired business outcome (e.g., awareness, web visits, conversions, revenue) that resulted due to a marketing intervention
  • 58. 58 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality testing approaches * https://peertopeermarketing.co
  • 59. 59 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality testing approaches * https://peertopeermarketing.co User Level
  • 60. 60 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Incrementality testing approaches * https://peertopeermarketing.co User Level Geo Level
  • 61. 61 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Challenges in incrementality testing Creating a test and control group Optimal test duration External factors
  • 62. 62 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Media Mix Modeling Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship between a pre-defined KPI like sales and the factors that influence them
  • 63. 63 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Media Mix Modeling Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship between a pre-defined KPI like sales and the factors that influence them Marketing Investment Offline Channels Online Channels Other Promotions TV Radio PR Website Paid Ads Display Social Email Video Internal Ads Coupons
  • 64. 64 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Media Mix Modeling Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship between a pre-defined KPI like sales and the factors that influence them Marketing Investment Offline Channels Online Channels Other Promotions TV Radio PR Website Paid Ads Display Social Email Video Internal Ads Coupons Other Drivers/Factors External Factors Economy Seasonality Competition Price New Products Distribution Product Drivers
  • 65. 65 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Media Mix Modeling Marketing Mix Modeling (MMM) is a statistical technique used to identify and quantify the relationship between a pre-defined KPI like sales and the factors that influence them Marketing Investment Offline Channels Online Channels Other Promotions TV Radio PR Website Paid Ads Display Social Email Video Internal Ads Coupons Other Drivers/Factors External Factors Economy Seasonality Competition Price New Products Distribution Product Drivers Media Mix Model Channel Importance Scenario Planner
  • 66. 66 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Defining the baseline and contribution of various marketing channels to the business goal • Find the baseline performance i.e. the business performance expected in the absence of any marketing activities • Measure the incremental contribution of each media channel to the business KPIs
  • 67. 67 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Using Ad Stock to assess ‘Memory Affect’ of marketing channels • Ad Stock analysis helps in understanding the lag that an ad on a specific media channel has on a consumer’s behaviour
  • 68. 68 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Benefits of Marketing Mix Modeling
  • 69. 69 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Benefits of Marketing Mix Modeling Privacy Friendly • Uses aggregate data Vs. User-level data • Not impacted by the loss of digital data
  • 70. 70 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Benefits of Marketing Mix Modeling Privacy Friendly • Uses aggregate data Vs. User-level data • Not impacted by the loss of digital data Holistic • Considers online and offline channels • Considers non-marketing activities (events) • Considers external and competitive factors
  • 71. 71 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Benefits of Marketing Mix Modeling Privacy Friendly • Uses aggregate data Vs. User-level data • Not impacted by the loss of digital data Holistic • Considers online and offline channels • Considers non-marketing activities (events) • Considers external and competitive factors Flexible • Adjusts based on the business types • Can factor various business KPIs
  • 72. 72 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Entire customer lists or all online conversions leveraged for building similar audiences, no prioritization based on profitability Common challenges with media mix modeling Limited amount of data Limited range of data Correlated input variable Selection bias
  • 73. 73 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Pros & Cons of each measurement technique Comparing various techniques
  • 74. 74 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Pros & Cons of Multi-Touch Attribution technique Pros • Very easy to understand • Can be used for digital ad optimization Cons • Only applicable to online channels • Unable to account for ad impressions • Cannot be used for full media portfolio planning
  • 75. 75 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Pros & Cons of Incrementality technique Pros • Gold standard for understanding the incremental value of marketing • Can be easily implemented on most of the ad platforms Cons • There is an ‘opportunity cost’ of not marketing to the control group • Can only measure one or two interventions at a time • Results are valid point in time
  • 76. 76 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Pros & Cons of Media Mix Modeling technique Pros • Considers all media channels and non-media factors • Can be used for full media portfolio planning Cons • Model results are highly dependent on the quality of inputs • Requires many years of data • Cannot be used for ad optimization • May be difficult to understand
  • 77. 77 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Selecting the right measurement technique Selecting the right measurement technique for your business
  • 78. 78 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Programmatic Display Programmatic Display Programmatic Display Factors to consider while selecting the right measurement technique Availability of Data • Is the data foundation in place? • Availability of historical data and granularity of data Availability of Resources • What’s the current tech stack for measurement? • Access to skilled resources The Use Case • Primary objective of the analysis • Industry and the customer journeys (Path to conversion)
  • 79. 79 This document and the information in it are provided in confidence, and may not be disclosed to any third party. A QUICK POLL: After today, do you feel more ready than before to measure marketing effectiveness? a. Definitely b. Somewhat c. Not really d. Let’s talk! (mark this if you would like a consult or help with assessing your marketing effectiveness)
  • 80. 80 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Q&A
  • 81. 81 This document and the information in it are provided in confidence, and may not be disclosed to any third party. Bangalore Singapore London Toronto New York Chicago San Francisco Mexico City Thank You! Shaubhik Ray Sr.Director, Digital Analytics Shaubhik.R@iquanti.com