Magenta Advisory's partner Lotta Kopra on measuring digital marketing success. Mainostajien Liitto, January 2014

1. Mainostajien liitto
Thoughts on measuring digital marketing success
27.1. 2014
Lotta Kopra, partner
Magenta Advisory

2. Purpose and agenda
Purpose:
This material has been created for Mainostajien liitto event.
The purpose of material is restricted to stimulate discussion in
the discussion board.
Agenda:
• What does digital marketing look like today and tomorrow?
• How shall advertisers measure digital marketing success?
• Discussion: What kind of new competencies and skills do
advertisers need to succeed?
11/21/11

3. The digitalization of consumers’ lives is transforming
marketing towards digital with accelerating speed
• Time consumption online continues to grow, especially
mobile
• Mobile, social and local are business as usual
• Intelligence going into the cloud
• Richer media, especially video
• Relevance, personalization
• Value moving from media space towards consumer
data
• The comeback of Walled Gardens
11/21/11

4. Advertisers need partners for different stages of the
digital marketing process
MARKETING
PLANNING
CAMPAIGN
CREATION
MEDIA
ACQUISITION
CAMPAIGN
PUBLISHING
MARKETING
ANALYTICS
MEDIA AGENCIES
SUPPORT
CORE
CORE
ADVERTISING AGENCIES
SUPPORT
SUPPORT
CORE
PUBLISHERS
CORE
SUPPORT
OTHER SERVICE PROVIDERS
CONSULTANTS
CHANNEL
SPECIALISTS
ANALYSTS
Sources: Magenta Advisory analysis.
13.2.2014
3

5. Taking advantage of the wealth of information on
marketing performance is often a major stretch
MARKETING
PLANNING
CAMPAIGN
CREATION
MEDIA
ACQUISITION
CAMPAIGN
PUBLISHING
MARKETING
ANALYTICS
FUNNEL
PERFORMANCE
OWNED MEDIA
Search traffic Website
reports
conversion
reports
Newsletter
KPIs
BOUGHT MEDIA
Affiliate
marketing ROI
SEM
performance
Display
metrics
EARNED MEDIA
Facebook
campaign Social media
performance
reports Viral campaign
analytics
Sources: Magenta Advisory analysis.
13.2.2014
4

6. Business relevance of digital marketing depends largely on
the industry: there is no single right answer
EXAMPLES OF WHERE DIGITAL MARKETING FITS IN DIFFERENT INDUSTRIES
MARKETING & SALES FUNNEL
AWARENESS
CONSIDERATION
FastFast-moving
consumer
goods
Car sales
TeleTeleoperators
Retail
CONVERSION
LOYALTY
Sources: Magenta Advisory analysis.
13.2.2014
5

7. The challenge lies in understanding HOW digital marketing
can support business targets
ILLUSTRATIVE TARGET SETTING FOR TWO INDUSTRIES
MARKETING & SALES FUNNEL
AWARENESS
CONSIDERATION
CONVERSION
LOYALTY
FMCG COMPANY
ONLINE RETAILER
80% brand recognition
60% top of mind position
50% share of voice
80% brand recognition
60% top of mind position
Category leader in discussion volume
80% positive discussion polarity
200,000 monthly product site visits
2,000,000 monthly visits
<30% bounce rate
Average visit duration >5 minutes
N/A
3.0% purchase conversion rate
€150 average order value
<40% return rate
N/A
50% of customers purchase more
than once / year
+30 Net Promoter Score
Sources: Magenta Advisory analysis.
13.2.2014
6

8. Digital media planning across owned, bought and earned
media is more complex than its offline counterpart
EXAMPLES OF HOW DIGITAL MARKETING TOOLS FIT THE MARKETING & SALES FUNNEL
BLOGS
FB FANS
TWITTER
RATINGS & REVIEWS
VIRALS
EARNED MEDIA
FORUMS
SEM
AFFILIATE
RETARGETING
DIRECT
DISPLAY
BOUGHT MEDIA
APPS
LOYALTY
NEWSLETTER
CONVERSION
SEO
CONSIDERATION
WEB & MOBILE SITE
AWARENESS
OWNED MEDIA
CAMPAIGN SITE
MARKETING & SALES FUNNEL
Sources: Magenta Advisory analysis.
13.2.2014
7

9. The challenge in planning campaigns is to create relevant
user journeys through the funnel
EXAMPLE ACTIVATION CONCEPT DRIVING CHRISTMAS SALES IN ONLINE STORE
MARKETING & SALES FUNNEL
OWNED MEDIA
CONVERSION
LOYALTY
ONLINE STORE:
CAMPAIGN
LANDING PAGE
SEARCH
OPTIMIZATION
MERCHANDIZING
EARNED MEDIA
BLOGS:
SEED TO
GENERATE
AWARENESS
DISPLAY ADS:
TO GENERATE
AWARENESS
AWARENESS
CONSIDERATION
BOUGHT MEDIA
SEM:
TURN AWARENESS
TO TRAFFIC
NEWSLETTER:
DRIVE REPEAT
BUYERS
Sources: Magenta Advisory analysis.
13.2.2014
8

10. 11/21/11

11. Magenta Advisory introduction
January, 2014
Lotta Kopra

12. As Finland’s leading technology independent
management advisory in digital business –
we help clients gain competitive advantage
digitally
11

13. Baseline of our growth will come from improving our market share within our existing
We are supporting many key players in their digital transformation…
“high buying potential” clients…
DIGITAL TRANSFORMATION PROGRESS IN DIFFERENT INDUSTRIES
High tech
Media
Digital transformation
progress
Finance
Travel
Telecom
Retail
Consumer
goods
Public sector
Industrial
goods
Industrial
services
Time working on digital
transformation
12

14. …throughout their digital transformation journey
MAGENTA ADVISORY OFFERING
STRATEGY
CAPABILITIES
BUSINESS EXCELLENCE
DIGITAL MARKETING AND CRM
ONLINE AND OMNICHANNEL COMMERCE
MULTICHANNEL CUSTOMER CARE
DIGITAL PRODUCTS AND SERVICES
13

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