agile, intelligent marketing

Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Agile, intelligent marketing

Jason Juma-Ross@ideasocAdTech Sydney, 2013

2013: another digital media watershed

Television Press Magazines Radio Cinema Out of Home

Direct Mail Digital0

1,000,000

2,000,000

3,000,000

4,000,000

2012 Australian Media Spend & YOY Δ

2Source: AQX Monthly, Jan 2011 – Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012Copyright © 2013 Accenture All Rights Reserved.

($18m)

($476m)

($24m)

$21m$8m

$000s

$11m ($41m)

$516m

Historical

ROI Basis

Marginal

>Optimal

>

2013: another digital media watershed

Television Press Magazines Radio Cinema Out of Home

Direct Mail Digital0

1,000,000

2,000,000

3,000,000

4,000,000

2012 Australian Media Spend & YOY Δ

3Source: AQX Monthly, Jan 2011 – Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012, Accenture analysis: APAC region.Copyright © 2013 Accenture All Rights Reserved.

($18m)

($476m)

($24m)

$21m$8m

$000s

$11m ($41m)

$516m

ROI Basis(example)

(2%) (28%) (10%)(60%)

25% 8%

MEAN: 9%

MEDIAN: 4%

Two types of organisations; two types of marketing processes

4Source: AQX Monthly, Feb 2012 – Jan 2013Copyright © 2013 Accenture All Rights Reserved.

0 20,000 40,000 60,000 80,000 100,000 120,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Broadcast (non-interactive) Spend ($ 000s)

Inte

racti

ve (O

nlin

e &

Dire

ct) S

pend

($ 0

00s)

Harvey Norman

Coles

Woolworths

Reckitt B.

McDonalds

Toyota

Telstra

Hyundai

Holden

Target

Top 10 Traditional

ANZ Bank

Toyota

AMEX

NABOrigin

Optus

CBA

Telstra

Westpac

VW

Top 10 Digital & Interactive

Relatively unknown: iterative

Relatively known: stable process

Marketing performance varies enormously across digital campaigns

• Return (campaign performance) varies enormously– CTR median of 0.0005, range of

0.05 (100 times the median)– Skewed distribution. Only a few,

very high CTRs in the >1% range– Base scenarios becoming more

costly (having lower ROI)• Cost (CPX) is even more varied

5Source: Accenture analysis, example digital campaigns aggregate 12m dataCopyright © 2013 Accenture All Rights Reserved.

Campaign CTR

Media CPX

How can we consistently improve marketing performance in the ‘relatively unknown’ territory of

digital?

Use ‘fast transients’ to deliver relevance at scale & speed

6Copyright © 2013 Accenture All Rights Reserved.

Display Media

KWG 1 KWG 2 KWG N Seg 1 Seg N

Search

Dynamic Landing Pages

Product/Detail Pages

Seg 2

Checkout / Conversion

• Integrated data• Intelligent conversion paths• Industrialised automation &

decisioning

de-averaging

Delivering relevance has a high cost of complexityCustomers demand a more granular and continuous content and functionality development cycle than is possible in the current paradigm


Re

leva

nce

+

Unit Delivery Cost +

Complexity Dimensions

5 Product categories

27 Brands

6 Regions

3 Channels

5 Cust. Segments

New Paradigm

Platform based, componentised dev., flexible architecture with analytics linking content, usage, and value

Current Paradigm

Monolithic web development & digital supply chain. Analytics used primarily for reporting purposes

Current

1 Treatment

5 Treatments

135

2,430

12,150 Treatments

810

Profile Data

Onsite Behaviours

Social Profiles

Known user profiling to drive content targeting at the last millisecond

8NB. Example ‘Context Cloud’ from Adobe CQ5Copyright © 2013 Accenture All Rights Reserved.

Repository

Digital Data Warehouse

Demographic Data

Custom Data Stores

Context Cloud

Intent can be estimated through combining unknown user context data


Highly Predictive

Anonymous Profile For

Testing

Site Behaviour Variables• Customer/prospect• New/return visitor• Previous visit patterns• Previous Product

interests – top level• Previous Product

interests – low level• Searches • Previous online

purchases• Previous Campaign

exposure• Previous Campaign

responses

Environmental Variables• IP address• Country of origin• Time zone• Operating system• Browser type• Screen resolution

Referrer Variables• Referring domain• Campaign ID• Affiliate• PPC• Natural search• Direct/bookmark

Temporal Variables• Time of day• Day of week• Recency• Frequency

Offline Variables

Delivering individual relevance: no average user experience


Lagging

STATIC ‘ONE-SIZE FITS ALL’ WEB SITES

PERIODIC, EMPIRICALLY-DRIVEN ITERATION

Search Social Display

Personalisation(HTML)

Applications, transactional, and service platforms

Intelligence Driven(Analytics)

Leading

Core Systems(Aligned)

Foundational Components

Web Skin (HTML Layer)

Analytics (Reporting)

Search Social Display

Emerging

AGILE, INTELLIGENT DELIVERY

CustomerData Cloud

Intelligent Adaptation

Componentised

Architecture


Broadcast Paradigm

1960 1980

Demog. Segment

Simple Offer

Single Channel

Uniform Campaign

Hindsight based business

PopulationDem

and

Pro

file Campaign

Intent Paradigm

2000 2020

Intent Segments

MultipleOffers

LocalMobileSocialSearch

WebeDM/DM

IPTV, etc

Fragmented Channels

Campaign Relevance

Relevance, scale, & speedB

undl

e

PopulationDem

and

Pro

file

Campaigns


Relevance = business de-averaged

Thank you

Jason Juma-RossRegional Managing DirectorAccenture Interactive

[email protected]@ideasoc


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