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multichannel marketing
White paper
multichannel marketing 1
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multichannel marketing 2
200
150
git S al till m Ca
100
Di
50
b Porta
le
ati Navig
on De
vice
Satellite Radio
0
2002 2003 2004 2005 2006 2007 2008
Actual
2009
2010
Forecast
201 1
2012
2013
Source: July 25, 2008, Benchmark 2008: Forecast Growth of Devices And Access In The U.S. report Note: Actuals from 2005 and earlier are adjustments based on surveys of household heads.
rEAChing ConsumErs hAs bEComE morE diffiCult The challenge has increased exponentially. There are more channels, more screens and more data than ever, and the rate of change is increasing. Adoption driven by accessibility and affordability, technology enables consumers to access a vast wealth of information, on their terms. Starting in the last few decades, the trajectory of change has ramped up fast and is not projected to slow down. Selecting one of the top spend channels, TV, we can see dramatic intra-channel shifts: From a peak year in mass TV advertising, 1965, until 2002, the number of 60-second spots necessary to reach 80 percent of ones target audience has increased from three to 1178. Translating this to trust and recent research surrounding brand message acceptance, 60 percent of respondents said they need to hear information about a company
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Fast-forward to the current decade. Todays teen has become a moving target. Nearly all are double or triple tasking while watching TV. U.S. teenagers trust information from each other 5 times more than adults and 10 times more than ads11. If you think about what this world looks like five to 10 years from now, this scenario will be even more complex as this demographic will be your future target. It will pay to get on top of this challenge sooner rather than later.
Activities U.S. Teen Inuencers* Are Doing Simultaneously While Watching TV, May 2010 (% of respondents)
Texting/spending time on mobile phones Spending time online 50% Doing homework
88% 79%
stArt with your bEst CustomErs Of finer resolution than your target audience, determine those customers who tend to buy more, buy more frequently, return less, and refer you to others more those top 30 percent of your customer base who deliver 100 percent of your profitability. Determine what this elite class looks like demographics, purchase habits, media habits, decision process and how you can acquire more of them. top down And bottom up The resulting analytics should include both ATL and BTL data in a holistic model. Driven from a steeped understanding of your best customer portrait, you can then use syndicated segmentation methodologies and look alike analysis to drive acquisition media decisions, in particular those above the line. While the value of a customer is not static, neither are their needs, desires, demographics, attitudes or behaviors. Its not about customer averages or the mean, but adding a level of intelligence and insight. Using historic media placement data, company sales history and third-party demographics, your statistical model should be agnostic to the legacy view of the advertising line. This approach delivers several incremental benefits: Attribution problems become less of a concern as the full picture of media consumption is viewed by a single model. You see the overlapping effects of alternate channels rather than the internal flurry of discussion seeking to claim last click ownership. Current shifts in media consumption tend to favor BTL digital channels, yet concurrent monitoring alleviates the need for constant tweaking of the underlying analytics.
Incremental Revenue Opportunities
Incremental Sales x Operating Pro t (%)
Note: *top 15% most active and engages myYearbook Members Source: myYearbook and Ketchum, Social Media Teen Inuencer Survey, provided to eMarketer, May 25, 2010 116033 www.eMarketer.com
Complicating this, pushing more noise at consumers who have become increasingly insensitive to the charms of marketers has proven to risk exacerbating the issue and drives negative long-term brand impressions.
Media Spend
Above the Line Spend Media Arbitrage Opportunities + Incremental Direct Marketing Spend
+
Levers for Improvement Touch points Engagement factor Marketable universe Response rate Conversion rate Shopping basket value
Pricing: People, Process and Technology Levers for Improvement Consolidation Collection Virtualization Standardization Severance expense
Direct Marketing Spend: Email Executiion, Direct Mail, Banner Purchases, etc. Levers for Improvement Map media buys to the best customer demographics What data is available on rate cards? Do sponsorships align with customerbase? PersonicX value overlay
EVP =
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multichannel marketing 4
EConomiC vAluE proposition Through elimination of media wasted on the wrong audience or mix of channels, a successful marketing mix optimization program should cover at least the cost of incremental resources. Sure, this is a worst case scenario, but given the pressure on cost containment and hurdles for justification, this is the safest decision for todays CMO. put tools in thE hAnds of dECision mAkErs Planning tools Rather than a static report in a dynamic market, you need to be able to adjust and form recommendations based on your planning cycles and needs. Three degrees of resolution you should consider: Media type (e.g., TV, radio, print or online) Marketing channel (e.g., email, direct mail postcards, etc.) Region (metro, state, country, etc.) What-if scenarios Marketers are seldom happy with inflexible rationale. Instead, consider the impact of tools that allow you and your team to examine whatif scenarios to understand how constraints impact the media mix and campaign outcomes by accounting for parameters such as budgets, partner obligations, regional investments or revenue mandates. Validation reporting Marketing mix optimization solutions are only as helpful as the validity of their predictions. Consider the need for a system of self checking the accuracy of your optimization model and its recommendations by testing and measuring initial results against objectives. Incremental adjustments will increase visibility, accuracy and ROI. its A journEy Start with bite-sized chunks, the building blocks; dont try to boil the ocean. Begin as a self-funding practice through a crawl, walk and then run with your differentiated customer strategy, revving the engine of your new media optimized machine. Like any journey, youll need a destination and roadmap to guide your way as you deploy the appropriate engagement strategies and tactics while balancing customer demands and organization goals. Throughout the journey, youll identify ways to reallocate budget from less profitable media channels to other, more profitable ones as you measure and refine your tactics.
acxiom corporation
(1) nielson, 2008 (2) Alterian your brand: At risk? or ready for growth?, 2010 (3) bain & Company, Closing the delivery gap, 2005 (4) Comscore, 2009 (5) rex briggs and greg stuart, what sticks: how most Advertising fails and how to guarantee yours succeeds, 2006, kaplan publishing (6) Acxiom, average customer analysis (7) forrester research, 2009 (8) tim stengel, former Cmo at p&g (9) Edelman trust barometer, 2009 (10) emarketer mintel, Attitudes toward traditional media Advertising and promotional marketing us, 2009 (1 emarketer deloitte, state of the media democracy fourth Edition: select us highlights, 2009 1) 2011 Acxiom Corporation. All rights reserved. Acxiom is a registered trademark of Acxiom Corporation. All other trademarks and service marks mentioned herein are property of their respective owners.
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