Making sense of a digital world - Digital Training Academy ... · Making sense of a digital world ... in web marketing strategy Digital Training Academy ... 21 Digital Training Academy

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Digital Training Academy© 2007 Digital Strategy Consulting & Partners. All rights reserved.

Making sense of a digital world

Digital Web Analytics AcademyWeb analytics 2.0: Advertising and media measurementLessons & Issues: Digital Training Academy

Learn what to count, how to count it, and how to use what you count. In Web Analytics Academy you’ll discover why most web businesses are flying blind, failing to have the right key performance indicators in place, and why many more waste energy tracking thewrong thing altogether. Find out what to trust and what to ignore. Get it right and your marketing becomes truly trackable and your KPIs really meaningful.


More information, papers and More information, papers and backgroundbackground……..

I created the web analytics academy to help marketers unlock more of the value from their digital marketing. These simple ten lessons were collated for the EMetrics summit in London, March 2007. They are handouts to remind delegates of some of the key points. Since 1999 I’d become frustrated with the missed opportunities of advertisingand marketing that simply didn’t fulfil its potential. Only through web analytics can the business benefits be accurately quantified, and online marketing improved and enhanced. Get this process right and your develop a self-learning business engine that forever improves the effectiveness of its marketing. I hope you find these notes from the Academy useful, and if you’d like more information, further insights, or a hand with figuring out what’s right for your business, then let me know.

Danny Meadows-KlueFounder & CEO, Digital Strategy Consulting & Digital Training Academy Ltd Co-founder and CEO, Interactive Advertising Bureau (EU)[email protected]+44 20 7244 9661

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Online advertising and mediaOnline advertising and media……

Web Analytics 2.0Web Analytics 2.0Web Analytics Academy for Advertisers & PublishersWeb Analytics Academy for Advertisers & Publishers

Danny Meadows-Klue [email protected], Digital Strategy Consulting & Digital Training Academy+44 20 7244 9661


TodayToday’’s Academys Academy

• Incredible potential

• Radically under utilized

• Missed opportunity

• Digital Training Academy

• Lessons from across Europe

• Analytics : 2 years : 10 lessons : 40 minutes

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Lesson 1Lesson 1What to count?What to count?



Digital Management Information AcademyDeciding what to countDigital Training Academy

Learn what to count, how to count it, and how to use what you count. In our Management Information Academy you’ll discover why most web businesses are flying blind, failing to track what matters.

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Getting to grips with web analyticsGetting to grips with web analytics……

Deciding what to countDeciding what to count……in web marketing strategy in web marketing strategy


What should you count?What should you count?

ImpressionsAd plays

Uniques

Emails

Conversions

Views

Visits

Cookies

ResponsesClick-throughs

Plays

Streams

Mouseover eventsCVs deliveredLeadsPass-on rates

IPs

Unsubscribes

Megs

Clicks

Streaming Audio

Searches

Open rates

Posts

Uptime

Brochure requests

Emails

Customers

Registrations

Gone-aways

Pimps

Minutes

HitsLogins

Bouncebacks

SMSs sentRSS subscriptions

Reach

FrequencyPress Radio TV

Retail PR Finance Outdoor Brand & Direct Marketing

The sum of all media

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What should you count?What should you count?

ImpressionsUniques

Visits

Cookies

Click-throughs

Leads

Clicks

Posts

Reach

Frequency


Best practiceBest practice• Always start with business goals: revenue, customers,

sales, acquisitions

• Review the broadest of choices for metrics

• Build a portfolio of metrics that truly matter

• Review the choice of metrics quarterly

• Stay close to industry news for new metrics

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ButBut……• No single planning / buying tool

• No single establishment survey in most countries

• No single standard for ‘Reach’

• New models in Germany, Italy, other experimenting markets

And a philosophical debate:Dumb down to other media, or play to online’s strengths


Lesson 2Lesson 2Data needs insights to Data needs insights to become real become real knowledgeknowledge

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Digital Management Information AcademyThe conundrum of the crumbling cookieDigital Training Academy

Learn what to count, how to count it, and how to use what you count. In our Management Information Academy you’ll discover why most web businesses are flying blind, failing to track what matters.


Core metrics may need Core metrics may need extra insightsextra insights

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Five common challengesFive common challenges1. Cookie blocking, churn and deletion distorts the frequency

capping of advertising and overstating campaign reach

2. Servers overstate traffic by not filtering out robotic and otherinvalid traffic: the role of audits, filtering and ‘invalids’

3. Counting the ‘click’ challenged by false clicks and clickfraud but resolved through best practice, filtering and a new industry code

4. Webserver and adserver data doesn’t tie up because each counts different things at different points – video play durations at the point of stream initiation (under control of media owner)

5. Under-trained executives fail to appreciate what’s being counted and the context

Resources: need more?The conundrum of the crumbling cookie


19%

11%6% 5%

58%

1.21.52.7

4.5

14.5

0%

10%

20%

30%

40%

50%

60%

70%

I II III IV VQuintiles

% o

f impa

cts b

y qui

ntile

0

2

4

6

8

10

12

14

16

Aver

age f

requ

ency

by q

uint

ile

% of Ttl Imps by Quintile Avg. Frequency by Quintile

Remember classic mediaRemember classic media

• So the traditional approach to frequency is far from perfect

Heavy users Light users

Frequency does not fall evenly in televisionFrequency does not fall evenly in television

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InsightInsight• Existing data needs interpretation

• Skilled analysts read data differently

• Firms fail to dedicate enough time and resource to data interpretation

• Challenges soften over time with industry guidelines, standards and best practice: Impression measurement counting, IAB Europe Standards Taskforce


Best practiceBest practice

• Talk with vendors and stakeholders about common challenges within those metrics

• Audit your own practices for compliance to best-practice or industry standards

• Look for alternative business processes that overcome the core problem

• Communicate those challenges within the analytics reports to ensure weaknesses and the context of data is communicated to stakeholders

• Review quarterly

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Lesson 3Lesson 3Building the right Building the right KPIsKPIs



Digital Management Information AcademyUnderstanding KPIs and measurementDigital Training Academy

In our Management Information Academy you’ll discover why most web businesses are flying blind, failing to have the right key performance indicators in place, and why many more waste energy tracking the wrong thing altogether. Find out what to trust and what to ignore. Get it right and together your KPIs and market intelligence can be turned into a digital nervous system for your online business; driving decisions and shaping strategy.

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KPIsKPIs areare……

• The tools we use to measure the business

• An early warning system for business health

• A common currency

• A way of making the complex simple


Marketers’ challenge

““What metrics What metrics should be my should be my

KPIsKPIs??””

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Core Core KPIsKPIsMedia owner; ad industryMedia owner; ad industry

• Volume (of advertising)

• Yield (of advertising)

• Share (of the market)


Common themesCommon themes

Team productivityMarketing

Advertising Audiences

CostsRevenues

Profitability

Others?

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Insight: Insight: KPIsKPIs

• Single set of data that describes the business

• Single set of data that can drive decisions

• Shared understanding and meaning

• Traffic light decision-making• Green: all’s good, no need to look• Amber: caution, may need attention• Red: deviating from the plan, needs attention


Audience Audience KPIsKPIs in in publishing firmspublishing firms

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Audience Audience KPIsKPIs to considerto consider

Digital Training Academy’s 5 Ps of traffic…

• People (unique users)• Pages (impressions)• Persistence (stickiness / duration of visit)• Pulling power (repeat visits)• Passion (intensity of their activity)

Resources: need more?Academy training in KPI development


Audience Audience KPIsKPIs• Grounded in business meaning

• Eg: Page impression = 2.5 ad impressions = CPM of $10 x sell through rate 65%

• Evolution over time• Impressions > reach > duration > video plays• New formats demand new approaches

• There are more potential KPIs in digital businesses because of their measurability

• A common sense balance is needed between entrepreneurship and scientific judgement, but KPIs can bridge the gap if this is new to the management team or there is uncertainty among stakeholders

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Best practiceBest practice• Start with business goals

• Select the KPIs from within your metrics

• Build targets for each KPI

• Create a traffic light system of red / amber / green

• Review the choice of KPIs quarterly in young businesses


Lesson 4Lesson 4Measuring market Measuring market positionposition

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Digital Competition AcademyMasterclasses for web publishersDigital Training Academy

Capturing and interpreting the signals from the market gives you a sense of where your brand is today and can be the early warning system for changes heading towards your business. Get it right and your competition tracking and KPIs act as the digital nervous system for your business; driving decisions and fuelling strategy.



““How am I How am I doing doing vsvs my my

competitors?competitors?””

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How well are you doing?How well are you doing?Traffic

Time

Your site



Time

Your site

Great!Your print title

Not so great

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Time

Your potential target for growth?

• Describe your addressable market

• Index the addressable and your own brands

• Compare changes over time

• Track shifts in market share



Time

Other sites

Your potential target for growth?

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Time

Your site

Industry averageNot so great



Zone for most companies in your secor

Average of addressable market

100

(indexed)

Time

20


Your site


100

(indexed)

Time

Average of addressable market

• Describe the industry average, or cite a basket of competitors

• Re-index to the industry average

• Track market share

+ Share rises

- Share falls


ChallengesChallenges

• Competitor benchmarking data weak

• Detailed data rarely available

• Challenges in comparability across markets

• Challenges of data aggregation and presentation inside of the firm

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Best practiceBest practice

• Review the benchmarking tools available

• Look for vendor based services such as audience panels

• Explore which other departments could also use this data

• Review the approach quarterly


Lesson 5Lesson 5Managing the data Managing the data dashboarddashboard

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Digital Management Information AcademyBuilding the KPI dashboardDigital Training Academy

Once the right metrics are in place they need to be managed, structured and made readily accessible. The dashboard that brings them together can be the controls and gears of the firm. Get it right and the complexity of the business is channelled into the key levers senior management need to pull.; driving decisions and shaping strategy.



““I have too I have too much data much data

coming from coming from too many too many sourcessources””

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Insight: Single dashboardInsight: Single dashboard

• Collation of data into a single access points

• Fusing web analytics, sales and competitor data to reveal business performance

• Sharing access to the dashboard with other departments, agencies, parent companies and stakeholders


Digital dashboardDigital dashboardGetting the right controls for the firm

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What would you like on your What would you like on your dashboard? dashboard?

Audiences:- Volume- Pages- Time- Activity

Advertising:- Volume- Format- Yield- Sector

Competitor:- Offline players- Internet plays

Question:What else?

Which KPIs form the dashboard?List them, look for them, refine them


Challenges overcome?Challenges overcome?

• Easier data management

• Improved interoperability of data standards

• More emphasis on management use of data

• Increased emphasis on dashboard toolkits

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Best practiceBest practice• Build a dashboard for your firm

• Collation of all data into a single intranet access point

• Fuse web analytics, sales and competitor data to reveal intimate business performance and the role in the value chain

• Share access to the dashboard with other departments, agencies, parent companies and stakeholders


Lesson 6Lesson 6Advertising 2.0 and Advertising 2.0 and Analytics 2.0Analytics 2.0

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Digital Web Analytics AcademyAdvertising 2.0 and the counting challengeDigital Training Academy

The sophistication and complexity of online advertising presentssome material challenges in how it is counted and reported. There are some areas in which we lack metrics that can truly express the involvement people have with marketing communications. In other areas the industry has adopted concepts from classic media that dumb down the richness of the online experience.



““Even simple Even simple advertising has advertising has

moved onmoved on””

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What is What is ‘‘Advertising 2.0Advertising 2.0’’

1. Over-the-page formats

2. Company websites and microsites

3. Email as a brand building medium

4. Search as a brand building medium


Over the page ad formatsOver the page ad formats

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OverOver--thethe--page advertising page advertising Media metrics• Audience reach• Technical interaction• Duration• Engagement• Email registration

Marketing metrics• Brand favourability• Purchase intent


Company websiteCompany website

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Company websiteCompany website


Company website / Company website / micrositemicrositeMedia metrics• Audience reach• Duration• Engagement• Email registrations• Customer journey steps


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Email: as brandingEmail: as branding

Media metrics• Audience reach• Open rates• Duration• Engagement



Search: as brandingSearch: as branding

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Search: as brandingSearch: as branding

Media metrics• Audience reach• Advertising views

Marketing metrics• Brand awareness• Brand favourability


Best practiceBest practice• Rethink a new layer of metrics

• Find out how your customers value advertising

• Look for evidence of time and engagement

• Think laterally: can you use brand building metric management in search and email?

• Run internal workshops to build out your options

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Lesson 7Lesson 7Web 2.0 and social Web 2.0 and social mediamedia



Digital Web Analytics AcademyWeb 2.0 and social mediaDigital Training Academy

The new generation of participative media add additional complexity to analytics. They challenge the notion of many fundamental principles and suggest new ways of measuring the business benefits of marketing. Here we look at some key trends and suggest ways analytics can be adjusted to capture the needs of these clients.

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““How do you How do you track track

participative participative marketing?marketing?””


Analytics 2.0 for Web 2.0Analytics 2.0 for Web 2.0

Participative media within web centric platforms

• Social media and user generated content

• User generated marketing

• Viral marketing

• Corporate blogging

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Viral marketing: first challenges Viral marketing: first challenges Media metrics• Audience reach• Duration• Engagement• Open rates• Pass-on rates

Marketing metrics• Brand attributes• Brand message recall• Brand favourability• Purchase intent


Corporate blogging Corporate blogging Media metrics• Audience reach• Page views• Conversations• Duration• Engagement• Trackbacks• Link equity• Trust• Social network analysis

• Popularity• Influence

Marketing metrics• Brand attributes• Brand favourability• Purchase intent

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Social media & user Social media & user gengen

Media metrics• Duration• Engagement• Audience reach



User generated advertising User generated advertising Media metrics• Audience reach• Duration• Engagement• Conversations• Content generation• Email registration


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Ajax: new layers Ajax: new layers Media metrics• User interaction• Audience reach • Duration• Engagement


Asynchronous JavaScript and XML

Ajax lets Web developers create interactive Web sites that function more like desktop programs than slow, static Web sites


Analytics 2.0 for Web 2.0Analytics 2.0 for Web 2.0Themes

• Engagement

• Customer conversion: microsteps

• Marketing brand metrics• Brand awareness• Brand attributes• Brand favourability / purchase intent

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Lesson 8Lesson 8Unlock sales through Unlock sales through operations dataoperations data



Digital Advertising Traffic AcademyGetting to grips with forecasting your inventoryDigital Training Academy

You can’t buy media that isn’t there. In classic media that wasn’t a problem because media owners and buyers could accurately predictthe number of pages in a magazine, the minutes of commercial airtime in broadcast media or the number of outdoor poster sitesavailable. Not so in online: this is a media channel where the audience creates the advertising inventory and people just are not that predictable! In this session we look at the challenges of forecasting inventory and some of the things you can do.

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Ad forecasting: Ad forecasting: benefits for publishersbenefits for publishers

• Short termAvailability for your current campaigns

• Medium termAnticipating bottlenecks and cold zonesTactical revenue maximisationRevenue forecasting

• Longer termUnderstanding how supply and demand should influence price Anticipating human or systems resource needs in your teamStrategic revenue maximisationInfluencing product or content strategy


Question

What influences What influences the availability the availability

of space in of space in classic media?classic media?

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Classic mediaClassic media

• Stable baseline supply

• Predictable fluctuations in supply (special magazine supplements, out of home media at sports events, increased seasonal cinema audiences)

• Few surprises


Question

What influences What influences the availability the availability of web banner of web banner

media?media?

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Web banners Web banners –– simple examplesimple example1. Audiences: Your audience creates the volumes – direct

relationship between viewers, page impressions and revenue opportunity

2. Bookings: Advertisers bookings can be last minute and are subject to greater change

3. Scheduling: Campaigns running in another section may spill over

4. Trading models: CPC and CPA deals consume unpredictable inventory volumes

…and a dozen more


Web banners Web banners –– one exampleone example

A x B x C x D x E x F x G x H x I =

cumulative impact

That’s WAY too complicated for a spreadsheet!

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Conclusions?Conclusions?

• Yield management is key to commercial success

• Forecasting is key to yield management

• Intelligence and processes are key to forecasting

• Data and web analysts are the starting point


Best practice: ad forecastingBest practice: ad forecasting• Dedicate responsibility for forecasting

• Create a structure to manipulate and model data

• Ring-fence resource to explore alternative scenarios

• Isolate tests and feed them back into the business

• Allow web analytics to start driving decision making

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Analytics to optimise clickAnalytics to optimise click--through ratesthrough rates

Number of exposures

New creative format introduced

New spaces introduced in media plan

New offer introduced within the creative

n5 10

Click-thru rates

.4%

.1%

.2%

.3%


Best practice: ad effectivenessBest practice: ad effectiveness

• Pre-test creative with 5% of the inventory

• Optimise creative within a site

• Optimise across a network

• Use the optimisation to build up performance patterns of sites

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Lesson 9Lesson 9Data analystsData analysts



Digital HR AcademyBuilding competencies in digital teamsDigital Training Academy

One of the most fundamental challenges firms face today is the lack of skilled people. Whether it’s the data analysts that unlock the power of web analytics, or the senior management that lead the business, digital competencies and skills are often dangerously weak. Finding the right people can be both tough and lengthy, and with the skills shortage set to remain for the next five years the effect on the firm can be stifling.

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Bigger challenge

““Where are Where are the data the data

analysts?!analysts?!””


Insight: data analystsInsight: data analysts

• Chronic skills shortage• “I bought the web analytics box but we don’t

use it much”

• Not enough data analysts• Data analysts not empowered in their firms• The advice of data analysts not implemented

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Best practice: Eight solutionsBest practice: Eight solutions

1. Acknowledge the problem2. Recruit from classic direct marketing 3. Nurture internal talent4. Train the industry en masse5. Outsource to specialists6. Raise the profile and esteem of data analysts7. Reward data analysts from business results;

incentives, bonuses8. Build their stature in the firm


Lesson 10Lesson 10Lead your teamLead your team

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Digital Leadership AcademyShaping the digital networked societyDigital Strategy Consulting

In times of huge economic and social change, knowledge becomes acritical success factor. We created the Digital Thought Leaders interviews and profiles to bring you closer to people and brandsshaping the digital networked economy. They are based on privateinterviews and public lectures, and are published monthly. The aim is to unlock the potential of your team through sharing leading edge insights from people shaping the digital networked economy. If we can bring you closer to the people shaping this new work then your company and team will be stronger in their knowledge and vision.


Best practiceBest practice• Review best practice from other sectors

• Give analytics a role in senior management

• Create CIO roles

• Build development and research competencies to evaluate new ways to harness analytics

• Come to more analytics events ;-)

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Analytics 2.0Analytics 2.010 lessons10 lessons


Analytics 2.0 : Web advertisingAnalytics 2.0 : Web advertisingThe ten steps in advertising analytics

• Lesson 1: Review your metric options, decide what to count• Lesson 2: Data needs insights to become knowledge, know the

weaknesses, tackle the weaknesses, be clear about weaknesses• Lesson 3: Turn data into KPI tools that can drive your business• Lesson 4: Measure market position with meaning• Lesson 5: Build, share and manage the data dashboard• Lesson 6: Advertising 2.0 and Analytics 2.0 - start tracking• Lesson 7: Web 2.0 and social media - start evaluating• Lesson 8: Unlock revenue through operations data• Lesson 9: Invest in your data analysts, train your data analysts• Lesson 10: Lead your team, give analytics weight, appoint CIOs


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Analytics 2.0 : Web advertisingAnalytics 2.0 : Web advertisingExplosive growth in web marketing, but:

Results can be even stronger

Budgets can be even more effective

Analysts and marketers can apply their insight to reshape the firm

Massive market efficiencies are there to be madeDanny Meadows-Klue [email protected], Digital Strategy Consulting & Digital Training Academy+44 20 7244 9661


TodayToday’’s executive analytics academys executive analytics academy

• Today: Web Analytics Academy(Advertising Media)

• Next weekhttp://Analytics.DigitalStrategyConsulting.com

• Download lecture materials

• Post questions for the next two weeks

• Champion web analytics in your firm


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The Digital Training Academy

More information? Contact: [email protected] +44 (0) 20 7244 9661© 2000-2007 Digital Strategy Consulting Ltd & PartnersRemember that the use of these materials is subject to our terms and conditions,

they are client confidential and are not to be distributed to other parties




Digital Web Analytics AcademyWeb analytics 2.0: Advertising and media measurementLessons & Issues: Digital Training Academy

Learn what to count, how to count it, and how to use what you count. In Web Analytics Academy you’ll discover why most web businesses are flying blind, failing to have the right key performance indicators in place, and why many more waste energy tracking thewrong thing altogether. Find out what to trust and what to ignore. Get it right and your marketing becomes truly trackable and your KPIs really meaningful.

Danny Meadows-KlueCEO, Digital Strategy Consulting & Digital Training [email protected]+44 20 7244 9661

Documents

Making sense of a digital world - Digital Training Academy ... · Making sense of a digital world ... in web marketing strategy Digital Training Academy ... 21 Digital Training Academy