Leveraging data scientists and why content ROI

@katrina_neal • #intelcontent

Leveraging Internal and External Data Scientists

and why its key to content ROI

Katrina Neal

Content Marketing Evangelist, LinkedIn

@katrina_neal


@TwitterHandle • #intelcontent

AGENDA


How to talk ROI for [content] marketing

How to measure the value of your content marketing

How to leverage internal and external data scientists

The role of Content Marketing Platforms






AGENDA


How to talk ROI for marketing



Return on Investment (ROI) is the benefit to an investor resulting from an investment of some resource.

In this formula, "Gain from Investment” refers to the proceeds obtained from the sale of the investment of interest

Return on Investment

Gain from investment – Cost of investment

Cost of investment

=

ROI


65%of CEOs think marketers live in Marketing la-la land


For Return on Marketing Investment (ROMI) the two key metrics are incremental net profit generated from the activity (the financial return), Versus the cost of campaign (the investment). Measuring the incremental net profit requires deeper investigation.

Return on Marketing Investment

Incremental Net Profit

Cost of Campaign

=

ROMI

x 100%


AGENDA


To calculate ROMI you need

• Cost of Campaign

• Incremental Sales

• Retailer Margin

• Variable Cost per unit

• http://romi.ipa.co.uk/index.php/calculator



Calculate the revenue you generated

Incremental sales units [A] = 18 coursesAverage price paid per unit [B] = £299Value of incremental retail sales [C] = A x B

Value of incremental retail sales [C] = £5,382

Step 1Return on Marketing Investment

ActualA Incremental sales volume (units) 18B Average price paid per unit £299C = A x B Value of incremental retail sales £5,382D Retailer gross margin (%) 0%E = D x C Retailer cash margin (£) £0F = C – E Incremental sales revenue to manufacturer £5,382G Variable cost per unit £102H = G x A Incremental variable costs £1,836I = F – H Contribution margin from incremental sales £3,546J = I ÷ F Contribution margin (%) 66%K Cost of campaign £300L = I – K Net profit generated by campaign £3,246M = L ÷ K x100 Return on marketing investment (ROMI) 1082%


Calculate the actual contribution you generated. To do this you must take into account the incremental COSTS incurred.

Variable cost per course (unit) was £102 = [G]Incremental sales units [A] = 18 coursesIncremental variable costs [H] = [G] x [A]

Incremental variable costs = £1,836

Incremental revenue [F] £5,382 Incremental Costs [H] £ £1,836Contribution Margin [I] = [F] – [H]

Contribution margin [I] = £3,546




Subtract the cost of the campaign to calculate the actual profit it generated

Contribution margin [I] = £3,546Cost of Campaign [K] = £300

Net Profit Generated [L] = Contribution Margin [I] – Cost of Campaign [K]

Net Profit Generated [L] = £3,246




The ROMI is presented as a percentage to show the ratio of profit from the investment

Return on Marketing Investment (ROMI) = L F

Net profit generated by campaign [L] £3,246Cost of Campaign [K] £300

ROMI = 1082%

Step 4 Return on Marketing Investment



AGENDA


To Calculate ROMI you need

• Cost of Campaign

• Incremental Sales

• Retailer Margin

• Variable Cost per unit

• http://romi.ipa.co.uk/index.php/calculator


AGENDA


how to measure the value of your content


@TwitterHandle • #intelcontent@katrina_neal • #intelcontent

Pipeline marketing is what you’re doing, while content marketing, inbound marketing, lead nurturing, and growth hacking are how you do it.


Attribution Models

• Single Touch

• Multi touch

• Full Path



Attribution Models

LinearTime decay

U-shaped W-shaped

Full pathCustom/

Algorithmic

First Touch

Last TouchLead

conversion touch


B2B or B2C?How many channels do you use?

Do you have a sales team?How long is your sales cycle

Do you nurture opportunities?


AGENDA


Single Touch Attribution

• First Touch

• Lead Conversion touch

• Last Touch



First Touch Attribution


Lead Conversion Touch


Last Touch Attribution


AGENDA


Multi Touch Attribution• Linear

• Time decay

• U-shaped

• W-shaped

• Full path

• Custom



JavaScript Tracking Code


Urchin Tracking Module (UTM) Parameters

utm_source=Google

utm_medium=CPC

utm_campaign=spring_sale

utm_content=logolink

utm_term=scuba+diving

Optional

Simply tags you add to a URL - supported out of the box by Google Analytics


Linear multi-touch attribution model

Each touchpoint is assigned the same amount of revenue creditCalculate the percentage by dividing the whole value of 1 by the total number of touchpoints along your buying journey


Time decay

If the sales cycle isn’t short, the early moments may not considered to be very importantmore concern is often given to nurturing initiatives


U-shaped

The U-shaped multi-touch attribution model focuses on two key touchpoints 40% eachbut 20% of the revenue kudos is divided across the moments in the middle that occur between those two stages


W-shaped

W-shaped multi-touch attribution modelling is similar to U-shaped, but it includes an additional key touchpoint


Full path

The full-path marketing attribution model is one of the most sophisticated attribution models available.A full-path model also includes the post-opportunity stage marketing initiatives and it incorporates sales activities into the mix as well


Custom

A custom multi-touch attribution model is built upon the basis of the full-path attribution model.


AGENDA


How to leverage data scientists



Internal Data Scientists


“Today, as a data scientist, I can build data crunching machines with complex algorithms for a few dollars per hour”


Found: The missing link between engagement and

revenue


Algorithmic Attribution


Q: What is the probability that an Engagement Activity would result in an SQL?

Q: Which activities would result in a Return Visit?

Content as seen through a Bayesian Network

Arcs: showing higher probabilistic relationships

Nodes: variables



External Data Scientists


Project Bulletproof

Gaurav Nihalani Adam Yinger

Miguel Leano Alex Chen


Guide vs. e-book?

We tested a Sponsored Update Headline with a Call To Action (CTA):

Download “Guide” vs Download “e-book”

“Guide” outperformed “e-book” 95% increase in Click Through Rate (CTR)


Register vs. Join?

We tested a Sponsored Update Headline with a Call To Action (CTA):

“Register” vs “Join”

“Register” outperformed “Join” 165% increase in Click Through Rate (CTR)


Quotes vs. Stats?

We tested a Sponsored Update Headline:

“Quote” vs “Stats”

“Quote” outperformed “Stat” 30% increase in Click Through Rate (CTR)


Objects vs. People?

We tested a Sponsored Update Image:

“[Professional] Person” vs “Object”

“Person” outperformed “Object” 160% increase in Click Through Rate (CTR)


Inmail vs. Inmail + Sponsored Content?

We did a multi channel test:

“Inmail” vs “Inmail + Sponsored Content”

“Inmail + Sponsored Content” outperformed “Inmail alone” 72% higher Click Through Rate (CTR)


Be a champion for experimentation


How you can run a simple A/B experiment on LinkedIn



https://business.linkedin.com/marketing-solutions/ads



AGENDA


Step 1• First, create a campaign that you want to promote.

Customize the creative, bidding, budget, etc. then

create an exact replica of that campaign as a second

campaign.



AGENDA


Step 2• Once you have two campaigns that are exactly alike

in every way, change one variable - for example, the targeting, the image or the headline text

• Run against the two different audiences for at least two weeks

• After two weeks, use an A/B significance test to monitor the results.




Variation A:Control (the unaltered, original version)

Variation B: Treatment (the optimized version which you expect to perform better)


Source: getdatadriven.com/ab-significance-test


splittestcalculator.com

This calculator is based on the two-sided Chi-Square statistic with Yates Correction.

This calculator uses a confidence level of 95%


AGENDA


Step 3• Make sure to also keep track of your A/B tests over

time. Finally, glean the results from all of your tests (or design a long-term experiment) to gain insights about your target audience and the success of your campaigns.



Variation A:Control (the unaltered, original version)

+ 48%

Variation B: Treatment (the optimized version which you expect to perform better)


https://offers.hubspot.com/an-introduction-to-ab-testing


Content Marketing Platforms









Understand commercial language

Champion the evolution of your content attribution models

Leverage data scientists and carry out your own experiments

Explore the potential of Content Marketing Platforms

TAKEAWAYS


Leveraging Internal and External Data Scientists

and why its key to content ROI

Katrina Neal

Content Marketing Evangelist, LinkedIn

@katrina_neal
