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Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer Obama for America

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Page 1: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Lessons from Inside the Obama Analytics Cave:

Targeted Marketing, Ad Testing and Digital Strategies

Andrew ClasterFormer Deputy Chief Analytics

OfficerObama for America

Page 2: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

2

Agenda

1. Inside the Obama Analytics Cave

2. Targeted Marketing, Ad Testing and Digital Strategies

Page 3: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Analytics and Data Strategy

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1. What is our goal?

2. How do we achieve that goal?

3. What can we affect to achieve that goal?

4. How can we use analytics and data to

achieve our goal?

1. Re-elect President Obama

2. Win 270 electoral votes

3. Voter registration, persuasion, turnout and

voter protection

4. OFA Analytics and Data Strategy

Page 4: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

The Data

4

• Voter files• Election results• Census• Public polls

Public

• Field• Online (BarackObama.com, email

subscribers, online advertising, social media)

• Internal polling

Internal

• Consumer dataCommerci

al

Page 5: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

What We Did

5

Purpose

Surveys State of the race, message testing, building individual-level models

Ad testing – online, TV, direct mail

Identify most effective messages, creative executions and platforms

Ad buy optimization Optimize TV ad purchasing

Individual-level predictive modeling and targeting

Identify most responsive individuals for each message, creative execution and mode of contact and deliver targeted communications at the individual or household level

Experiments Calculate ROI for each mode of contact

Sentiment analysis Analyze importance and sentiment surrounding events and issues

Reporting Provide visibility to decision-makers regarding performance

Social media targeted sharing

Leverage social networks of supporters to increase reach and effectiveness

Page 6: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

TV Advertising

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Spending Number of Times Ads Aired

$395M

637K

$444M

571K

OFA, DNC, Priorities USA Romney, RNC, GOP Allies

April to November Ad Buys – Broadcast and National Cable Only

Source: Washington Post, Kantar Media/CMAG

Democrats spent 11% less on TV ads

But Democratic ads aired 12% more

Page 7: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

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Agenda

1. Inside the Obama Analytics Cave

2. Targeted Marketing, Ad Testing and Digital Strategies

Page 8: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Analytics & Big Data Strategy

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What are we trying to do? What are our

goals?

What can we affect to reach those goals?

How can analytics and data help us do

this?

Role of Data Mining

Page 9: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

The Data – Healthcare Public Relations and Marketing

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• Census• Public health dataPublic

• Customer and provider data – services, payments

• Online and offline• Historic sales, marketing and

advertising data

Internal

• Consumer dataCommerci

al

Page 10: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Predictive

Modeling

Big Data, Survey Data and Predictive Modeling

Big Data

Small Data

+ + =Individual-

Level Targeting

• Sales, Revenue, Profit• Corporate Reputation

Data and models can be updated

continuously

• Sales, marketing, advertising data

• CRM data• Online data (email, online ads,

Website)• Social media data• Consumer data (Acxiom,

Experian)

Big DataSmall Data

• Sampling• Surveys• Field

experiments• A/B testing

Page 11: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

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How Can Data and Analytics Help With Targeted Marketing, Ad Testing and Digital Strategy?Who should we be targeting? Renewal, retention, lapsed customers, prospects, upselling

What products, offers and messages should we be using?

To whom should we target these products, offers and messages?

How do we develop, test and deliver effective creative, messages, offers, products?

In what media should we deliver this creative, messaging, offer, product? Email, online ads, direct mail, telemarketing, Website

How do we measure return on investment?

Goal: Deliver the right creative with the right products, offers and messages to the right targets in the right media and accurately forecast and measure results

Page 12: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Key Elements

Conduct randomized controlled experiments

Use actual market outcomes (e.g. profit, revenue, unit sales)

Build individual-level predictive models

Target at the individual level

Validation process

Page 13: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

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Successful Analytics and Data Strategies

Leadership and buy-in

What does leadership care about most? What don’t they know?

Look for quick/easy win opportunities aligned to goals

Recruit allies and champions

Identify promising datasets

Get to know the data

Maintain focus on goals, results and deliverables

Page 14: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Analytics and Data Tools

1.Analytics Strategy Development: What are our goals? What can we affect to reach those goals? How can we use analytics and data to do this?

2. Internal Data Audit: What data do you have? Where does it live? What are you missing? What data is most valuable? What data hygiene and bias problems do you face?

3.External Data Testing: What’s out there? What is it worth? (quantify return on investment)

4.Data Integration: Combining data across platforms – online, offline, sales, marketing, advertising, CRM, etc.

5.Technology Tools: Facilitating, automating processes and reducing errors for better analysis and decision-making.

Page 15: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Analytics and Data Tools

6.Survey Research and Message Testing: What messages are most effective and should be tested in creative executions? What data can we collect on corporate reputation and other intangibles?

7.Ad Testing: In any format (online ads, social media, SMS, email, direct mail, TV, telemarketing) – what is our return on investment? How many dollars in revenue do we gain for each dollar of ad spending?

8.Experiments: What return are we getting on our current investments? How can we improve our messages, offers, creative execution or targeting?

9. Individual-level Predictive Modeling: For each individual, what communication (sales, marketing, advertising, etc.) is most effective – what message/offer/product do we deliver, who do we deliver it to and how do we deliver it? (creative execution and medium)

Page 16: Lessons from Inside the Obama Analytics Cave: Targeted Marketing, Ad Testing and Digital Strategies Andrew Claster Former Deputy Chief Analytics Officer

Analytics and Data Tools

10.Online/Offline Integration: How do we use online data to drive offline activity and vice-versa?

11.Social Media and Other Online Data: What can we learn by mining Twitter? What can we learn about people who follow us, friend us, like us, link to us?

12.Simulators: What tools can we provide to decision-makers to help them identify the optimal price, offer, message and measure the effect on unit sales, revenue and profit?

13.Reporting, Visualization and Mapping: Do decision-makers have insight into what is going on? Do they know what products, offers or teams are over/under-performing? What can we show them with quarterly, monthly, weekly or daily reports to help them make better decisions?