analytics for cmos on the rise
TRANSCRIPT
MarketShare confidential and proprietary 1
Analytics for CMOs on the Rise
Kathy Bachmann
EVP Americas, MarketShare
January 27, 2015
Argyle Chief Marketing Officer Leadership Forum
MarketShare confidential and proprietary 2
MarketShare
• Industry-leading analytics solution for CMOs
• Resource allocation, budgeting, cross-media attribution
• Leveraged by 8 of the top 10 global brands
• Directs over $30B in media this year
• Top-scoring in Forrester Research report on marketing analytics, 2 years in a row
Los Angeles San Francisco London New York Bangalore Tokyo
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Data-Driven Opportunities Data-Driven Challenges
MarketShare confidential and proprietary 4
Welcome to Data-Driven Marketing!
Empowerment “Oversight”
MarketShare confidential and proprietary 5
Data-Driven Promise
“The two roles that matter most for 2015 are the CIO and the CMO—their relationship and joint strategy to boost the business will determine the future of any corporation.”
– Cliff Condon, Forrester Research, December 2014
“CMO tenure has been on the rise for the past seven years.”
– Spencer Stuart CMO Tenure Study, March 2014
MarketShare confidential and proprietary 6
Data-Driven Perils “Unless the CMO
demonstrates the value that
marketing is delivering and
clearly shows the return on
investment…The CMO could
find himself out of the job.”
- Raja Rajamannar, CMO,
MasterCard
65% of marketers feel “increasing
pressure to prove the value
of marketing" from senior leadership.
“There is an expectation that
[marketing today is] more
measureable, more targeted
and therefore more effective.
This has made everybody’s
expectations higher.”
- John Hayes, CMO,
American Express
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Are You Meeting the Challenge?
MarketShare confidential and proprietary 8
We Bought Into Integrated Customer Experiences…
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…and Integrated Marketing…
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…But Haven’t Achieved Integrated Measurement
Source: Econsultancy in association with Oracle Marketing Cloud, August 2014
67%
43%
19%
Priority: Cross-Channel IntegratedMarketing
Understand Customer Journeys &Can Adapt Mix
Measure Financial Results of Cross-Channel, Integrated Marketing
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Unfortunately, accurate measurement is not so simple Unfortunately, accurate measurement is not so simple
2005 2013
MarketShare confidential and proprietary 12
2020
35 zettabytes
Explosion of Data Requires Sophisticated Measurement
as much Data and Content Over Coming Decade
44x
Sources: The Guardian, May 2010 IDC Digital Universe, 2010 IBM Institute for Business Value, 2009 IBM CIO Study 2010 TDWI: Next Generation Data Warehouse Platforms Q4’09
2009 800,000
Petabytes
2020 35
Zettabytes
Business leaders frequently make decisions based on information they don’t trust, or don’t have 1 in 3
MarketShare confidential and proprietary 13
Meanwhile, Digital is Changing the Face of Branding
Source: eMarketer, May 2014
Nearly 3/5 digital $ for branding
Branding 41%
Direct Response
59%
MarketShare confidential and proprietary 14
And Addressable Transforms Measurable Media
• 40M US addressable TV homes in 2016 -Dave Morgan, CEO Simulmedia in AdAge
• Connected-home device sales to drive over $61B revenue in 2015 - Business Insider Research
• Wearables shipments hit 112M units in 2018 (20M in 2014) - IDC
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The New Questions for the Data-Driven CMO
How do I achieve ROI?
How do I get credit (and not get blamed unfairly)?
How should I focus on the big picture—and on the right details?
How do I choose the right mix from the choices I have?
What information should I be include that I’m ignoring today?
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We Need a New Measurement Approach Where Each Marketing Program
Gets the Credit it is Due
MarketShare confidential and proprietary 17
The CMO Imperative
Better decisions through better analytics – at scale
Quantify revenue impact of marketing, sales, & promotional investments
Predictive guidance: What and how to invest, next moves, & what will happen
Cut through complexity of multi-channel, multi-market companies to unearth true revenue drivers
MarketShare confidential and proprietary 18
Analytics 1.0: Where we began
Media Mix Models
Digital ROI/attribution Silo-based, campaign-based
Media-centric Samples of data
Focus on eyeballs, ratings
Backward-looking
Hard to convince Finance to believe
One-off Analysis
Annual
Executed by boutiques
MarketShare confidential and proprietary 19
Analytics 2.0: A New Era in Decision-Making
Iterative and ongoing
Real-time course-correction
Across all business drivers, not simply media
Fact-based decision-making
Shifting from Eyeballs to Outcomes
Forward-looking
Bridging Marketing & Finance
Enterprise software-based
MarketShare confidential and proprietary 20
“Led by a merger of attribution and marketing mix modeling, new tools will consolidate and integrate into a new marketing optimization platform” - Jim Nail, Forrester Research
MarketShare confidential and proprietary 21
Where Do We Go from Here?
5 Key Lessons
MarketShare confidential and proprietary 22
1. Ditch the Antiquated Measurement Models.
Social Media $33
Paid Search
Banner Ad $100
TV Spot $50,000
Print Ad $33
TV Spot $50,000
TV Spot Paid Search
Paid Search $33
Email Blast
Affiliated Referral
$100
Success $100
Organic Search $100
Success $51,100
Success $50,000
Success $100
Last Channel Credit
All Channels Equal Credit
All Channels All Credit
First Channel Credit
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2. Consumers Don’t Swim in “Swim Lanes”
$100 Million Sales Discrepancy
Print TV Display Search Social
Social
Search
Display
TV
Complete
Picture
MarketShare confidential and proprietary 24
3. Consider Brand Impact.
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4. It’s Not Just Marketing Inputs
5. Technology + Analytics = Seeing Things We Could Never See
MarketShare confidential and proprietary 27
Kathy Bachmann
EVP Americas, MarketShare
www.MarketShare.com
@MarketShareCo