Delivering ROI, Internationally Ian Manning Head of Client Services – International ZenithOptimedia International 09 October 2009

“marketing departments have an inadequate understanding of financial controls” Source: Advertising Age, July 2008

Profitable Growth

“Companies showing a commitment to measuring marketing tend to be better at delivering profitable growth”

Brand Power PricingDistribution Brand PowerMedia Investment Drivers of Profitable Growth

Based on detailed P&L inputs and marketing channel response functions at the market, portfolio, brand and sku level Econometrics attempts to isolate drivers by ‘unbaking the cake’

“Every brand in every country that has done marketing mix modelling or marketing ROI (econometric analysis) has improved the productivity of its marketing spending without exception” AJ Laffey Chairman, P&G

Media is a Significant investment ($454 Bill in 2009) Source: ZenithOptimedia Forecasts, July 2009

The Challenge for us is to understand the relationship between Media Investment and Profitable Growth Profitable GrowthMedia Investment

Many Metrics are Available to bridge the gap Search Metrics Web/banner Metrics Web/banner Metrics Website Metrics Website Metrics In-Store Metrics In-Store Metrics Media Metrics Brand Metrics Brand Metrics Profitable Growth Media Investment

Media Metrics

Brand/Client Metrics

Delivering ROI 1.Setting the right objective 2.Setting the right levels 3.Move from Measures to Outputs 4.Make it actionable

90% of campaigns with ROI goals deliver satisfactory results Source: Moore and Allsop, 2004

PR tracking WOM tracking Buzz tracking Net Promoter Awareness tracking Brand equity & image tracking Consider ation / purchase intent tracking Sales data EPOS data Usability tests Qual research Loyalty tracking Newslett er clicks WOM tracking 1. Setting the right Objectives

1.Reach (Grp’s, Impressions) 2.Brand tracking awareness changes 3.Search keyword mentions 4.Blog mentions 1.Time on Website 2.Newsletter downloads 3.Event attendance 4.Repurchase

Use Past performance as a guide Where own data is not possible, use competitor data or norms data Consider the required level to deliver the right conversion rate 2. Setting the right Levels

Measures ‘One-number’ fact – Eg: Cost Eg: GRP’s Eg: Web visits Metric Analysis – Cost per Grp Cost per click Intermediate Metric A stream of inputs & outputs– Awareness Cost per awareness engagement Output Metric For every € invested in x, it delivers y profit 3. Move from Measures to Outputs

4. Think ROI throughout the Process

2.2% growth in share of market (SOM) per 10% points of excess share of voice (SOV-SOM)* SOV/SOM *IPA 127 case examples IPA Effectiveness Awards cases 1980 to 2008

Media investment Sales/ Profit More profitable markets/channels are more attractive Less profitable markets /channels are less attractive Response Curves

Target descriptions influence investment 350 GRP’s 73% Reach 4.8 OTS AB Men 35+AB Men Top Income €90k less expensive

Better target understanding creates ROI Plan GRPs €320,000 20% Specialist Channels Plan GRPs €240,000 37% Specialist Channels 10% less ratings 25% less budget

Negotiation Tactics for greater value Leverage Rates Leverage Value Network Prime OOH Digital Magazines Radio Premium Cable Cable Local TV HARD SOFT

Ensure the metrics chosen can be affected by changes to the investment strategy Ensure the metrics chosen can be influenced during (not only after) the campaign Live Dashboards allow us to evaluate multiple metrics during campaigns 5. Make it Actionable

1.Clarify and agree desired outcome with all stakeholders 2.Audit available metrics 3.Agree KPI (and link to rewards) 4.Set ongoing measurement in place 5.Ongoing campaign optimisation through live dashboards Living ROI

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