engaging the whos

Engaging the Who’s

Tim SutherSVP, Multichannel Marketing ServicesTim.Suther@acxiom.com001-630-944-0416www.acxiom.com

http://www.linkedin.com/in/timsutherhttp://twitter.com/timsutherhttp://www.slideshare.net/TimSuther

Increase marketing performance by concentrating on your best customers and prospects 

2

Living next to the train tracks

$112 billion of advertising is wasted each year in the US alone

$4 trillion excess brand valuation

22% of Americans feel advertising is credible…compared to 45% for talk shows

42% of consumer media consumption is online

7% of disposable income is now saved – was 0%

3

The differentiated value of customers

30% of customers deliver the majority of profits

50% Add nothing

20% Cost companies money

SAS

4

A look at “who” at world class brandsCadillac

AllstateHershey

American Express

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

Source: Acxiom comScore (July 2009)

5

…and at leading publishers

MSN96 MM UV’s

AOL70 MM UV’s

eBay56 MM UV’s

Yahoo148 MM UV’s

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

Source: Acxiom comScore (July 2009)

6

Like a box of chocolates…

• With most media, you never know whoyou’re gonna get.

– ~80% online ad spend delivered to wrong audience. comScore 2009

• Knowing who determines:

– How much to invest…if anything

– What to say…without guessing

• Most firms…

– Over-invest in low value relationships

– Under-invest in high value relationships

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Concentrate ad spend to drive valueTypical payoff of 3-5x revenue/ad value

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Concentration Multiplier ROI IllustrationConcentrated Traditional Variance

Campaign CostImpression Volume 43,750,000 100,000,000Cost per Thousand 8.00$ 3.50$

Total Campaign Cost 350,000$ 350,000$ -$

Revenue GeneratedRevenue/conversion 375$ 250$ Clickthrough Rate 0.113% 0.075%Conversion to Click Rate 5.00% 2.00%Latent/viewthrough conv % 50% 50%Total Conversions 3,691 2,250

Total Revenue 1,384,277$ 562,500$ 821,777$ 146% higher

ContributionFrom clickthrough 572,852$ 25,000$

Total Contribution 1,034,277$ 212,500$ 821,777$ 387% higher

Revenue per Ad DollarFrom clickthrough 1.64$ 0.07$

Total Revenue/Ad Dollar 3.96$ 1.61$ 2.35$ 146% higher

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What to do nowUse the concentration multiplier principle to drive ROMI

1. Identify customer value

2. Invest proportionally

3. Find/recognize & engage accordingly

4. Measure acquired value

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The global interactive marketing services company

Thank You

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