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B2B Marketing Math: Solving for ROI
Keith RicheyDirector, Marketing at LinkedIn
Marcus AndrewsSenior Product Marketing Manager,
HubSpot
Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
For the first time in the history of media you can engage with the world’s professionals in
one place
Achieve your goals from awareness to engagement to new
businessThe most effective platform for marketers
to engage professionals
61Msenior-levelinfluencers
40Mdecision makers
10Mopinion leaders
6MC-level execs
22MMass Affluent
4MIT decision makers
433Mprofessionals are on LinkedIn
The largest global community of professionals
Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
Customer MarketingBrand Marketing Acquisition Marketing
Focus today on Acquisition Marketing ROI
Marketing ROI Defined
Return (what you earned)
Investment (what you spent)
ROIReturn on
investment
ROASReturn on Ad Spend ROI
• Spend on paid media
+ (maybe)
• Creative cost
• Spend on paid media • Creative cost
+• Sales & marketing salary
cost• Systems cost• Incentive cost• Etc . . .
‘Fully Loaded’
‘Fully Loaded’ ROI adds more investment categories. For simplicity, most companies use ROAS to mean ROI.
The ROI calculation
Ad-sourced Revenue Ad spend ROIAd spend
Ad-sourced Revenue Ad spend ROI
Alternative: simplified version
Measuring ad spend = Easy Measuring ad-sourced revenue = Harder
Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
HubSpotThe Inbound Marketing Methodology
Inbound marketing is about using marketing to bring potential customers to you, rather than having your marketing efforts
fight for their attention.
The HubSpot Ads Add-OnIt’s inbound, Amplified
1. Your Ads, Inside HubSpot • LinkedIn Sponsored updates• Google AdWords• More on the way
2. Conversions over Clicks • Close the loop on reporting by
combining HubSpot and Ad Network Data.
3. Get More from Inbound • Drive more leads from your best
performing content and offers.
The Curve of Marketing Math SuccessMove from clicks to conversions
The Curve of Marketing Math SuccessMove from clicks to conversions
Putting the Math to WorkMove from clicks to conversions
InboundCampaig
n and Goal
Build Ads Conversion Funnel
Run the Numbers
Measure Success
Optimize
Start Here!
Putting the Math to WorkMove from clicks to conversions
InboundCampaig
n and Goal
Build Ads Conversion Funnel
Run the Numbers
Measure Success
Optimize
CPC/CTR
CPC/CTR
CVR
CVRCPA
Ads and Inbound through HubSpotEHS Insight Example
All results from ads after implement HubSpot ads and focusing on other key optimizations
EHS Insight increase ad conversions 90% with HubSpot Ads Add-On“Inbound and Paid campaigns absolutely must be in harmony to maximize the value for us. HubSpot Ads makes it much easier to keep an eye on both and to correlate the results of campaigns across channels. We can make better decisions in less time.”
Gary McDonald CEO, EHS Insight SMB - SoftwareHouston, TX HubSpot customer for 12-
months. Have used the Ads Add-on for 4-months to optimize, search and social ads inside HubSpot.
225% More Visits
90% More
Conversions
211%More Contacts
70%More MQLs
Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
Our Marketing Goals
MQLs for sales team
Marketing Qualified Leads (MQLs)
BookingsTraffic
Bookings $ from new customers
Quality traffic to our properties
How we measure ‘beyond the lead’
Inquiries (aka Leads)
Marketing Qualified Leads (MQLs)
BookingsOppsTraffic
Inquiries MQLs BookingsOppsTraffic
‘Last touch’ attribution
Individual inquiries tracked through to bookings $
Website Eloqua Salesforce
Systems enable measurement
Ad-sourced measures direct impact on new business
Influenced• Brand awareness• Retention / upsell• Pipeline acceleration• Sales enablement• Customer onboarding• NPS
Sourced• Field customers• Self Serve
activations
Manage to ROI by channel, using cost per X as a leading indicator to optimize more quickly
Inquiries MQLs BookingsOpps
Ad spend
Cost/Inquiry Cost/MQL ROICost/Opp
We track 1st year customer $ actuals for reporting, and use 1-3 yr projections for investment decisions
Ad-sourced
CustomerQtr 1
revenueQtr 2
revenueQtr 3
revenueQtr 4
revenueQtr 5
revenue
Labeled as “Ad sourced” in each reporting period Not labeled as “Ad sourced”
Optimizations and investment decisions are based on 1-3 yr profit projections
Mktg + Sales Customer
Acquisition CostProjected 1-3 yr
Margin LTV 1-3 yr ROI
Reaching our goals
113% to plan for MQLs in 2015
Marketing Qualified Leads (MQLs)
BookingsTraffic
30% of new biz sourced by marketing
72% of visitors to our site
Manager+
Content is core
EVENTS
CAMPAIGNS SOCIAL +ONLINE
CONTENT
Today’s Agenda
About LinkedIn Marketing Solutions
Marketing ROI defined
The curve of marketing math success
How LinkedIn measures beyond the lead
NewsCred ROI story
Lead generation using LinkedIn Sponsored Updates
Sales Cycle
A prospect gives names and contact
info
Lead Opportunity Closed Won DealName
After the prospect expresses real sales
interest
After successful meetings with
leads who show intent to buy
When a contract has been signed
Three steps to calculating ROICalculate cost per Name by channel
Calculate value per Name by channel
Calculate ROI by channel
# of Names by channel
Ad Spend by channel
Name Conversion rate by channel
Annual Contract Value (ACV)
Value of Name Cost per Name
1
2
3
Names from LinkedIn 50% more valuable than from AdWords
Sponsored Updates delivers 5X+ the ROI of AdWords
Channel ROI (Name value / Cost per Name)
LinkedIn Sponsored Updates 17.6
Native Ads 14.9
Google AdWords 3.1
Engaging the right professionals gets results
94%of B2B Marketers
use LinkedIn
to distribute
content 1 #1LinkedIn rated the top
social network for lead
generation 2
1 B2B Content Marketing, 2016 Benchmarks, Content Marketing Institute/MarketingProfs;2 The State of B2B Digital Marketing, Fall 2015, Demandwave
Q&A