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Setting optimization goals: You want to create marketing scenarios, where you can predict an organizational aligned outcome with a high level of confidence.
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YAHOO! CONFIDENTIAL 1
Analytics - and Choosing your
DENNIS R. MORTENSEN | MAY 2010
optimization goals
Author Blogger WAA Yahoo! Entrepreneur
Choosing Why is this important ?
optimization goals.
DENNIS R. MORTENSEN | MAY 2010
You must serve the overall
DENNIS R. MORTENSEN | MAY 2010
purpose of the organization (of course)
DENNIS R. MORTENSEN | MAY 2010
KPIs The goals of most organizations are usually set as
KPI duplicates ?
DENNIS R. MORTENSEN | MAY 2010
Are your optimization goals,
NOT KPI duplicates,
DENNIS R. MORTENSEN | MAY 2010
If optimization goals are
KPI derivatives ?
surely they are
NOT KPI derivatives,
DENNIS R. MORTENSEN | MAY 2010
If optimization goals are
KPI derivative proxies ?
they must certainly be
DENNIS R. MORTENSEN | MAY 2010
None of the above – then what ? Certainly not CTR or Visits :-)
DENNIS R. MORTENSEN | MAY 2010
The further away your optimizations goals are from your organizational KPIs
– the higher the risk of applying direct harm.
(turning decent marketing initiatives into organizational de-optimization exercises)
DENNIS R. MORTENSEN | MAY 2010
Assuming we have an optimization goal metric,
that is well aligned with organizational KPIs
* we should be home safe, yes ?
DENNIS R. MORTENSEN | MAY 2010
An optimization goal is inheritably aligned with
(multiple online channels, and generally a changing universe)
attribution choices
DENNIS R. MORTENSEN | MAY 2010
attribution modeling ? Does the optimization goal apply for respectable
DENNIS R. MORTENSEN | MAY 2010
Assuming we have perfect organizational aligned goals,
that can be accurately attributed their fair success
* we should be home safe, yes ?
DENNIS R. MORTENSEN | MAY 2010
online marketing initiative. An online optimization goal in likely to be built into an
(mixing online and offline)
DENNIS R. MORTENSEN | MAY 2010
Media Mix Modeling ?
Does the optimization goal apply for respectable
attribution modeling in conjunction with
DENNIS R. MORTENSEN | MAY 2010
Example: Let’s have a look at how people attack PPC optimization goal setting
DENNIS R. MORTENSEN | MAY 2010
Impressions
DENNIS R. MORTENSEN | MAY 2010
CTR
DENNIS R. MORTENSEN | MAY 2010
Visit-to-Sales Conversion
DENNIS R. MORTENSEN | MAY 2010
Visitor-to-Sales Conversion
DENNIS R. MORTENSEN | MAY 2010
Revenue per Visit
DENNIS R. MORTENSEN | MAY 2010
Revenue per Visitor
DENNIS R. MORTENSEN | MAY 2010
Profit per Visitor
DENNIS R. MORTENSEN | MAY 2010
Lifetime Value of a Visitor
DENNIS R. MORTENSEN | MAY 2010
Customer Lifetime Value
DENNIS R. MORTENSEN | MAY 2010
In conclusion
Setting optimization goals:
You want to create marketing scenarios,
where you can predict an organizational aligned outcome
with a high level of confidence
AND it’s not easy
Want to know more about
VisualRevenue.com/blog or Twitter.com/DennisMortensen
Analytics, Media and Marketing?
Thank you Dennis R. Mortensen, Director of Data Insights at Yahoo! | [email protected]
Blog: http://visualrevenue.com/blog
Book: http://visualrevenue.com/blog/yahoo-analytics-book
Twitter: http://twitter.com/DennisMortensen
