b2b marketing math: solving for roi

B2B Marketing Math: Solving for ROI

Keith RicheyDirector, Marketing at LinkedIn

Marcus AndrewsSenior Product Marketing Manager,

HubSpot

Today’s Agenda

About LinkedIn Marketing Solutions

Marketing ROI defined

The curve of marketing math success

How LinkedIn measures beyond the lead

NewsCred ROI story

For the first time in the history of media you can engage with the world’s professionals in

one place

Achieve your goals from awareness to engagement to new

businessThe most effective platform for marketers

to engage professionals

61Msenior-levelinfluencers

40Mdecision makers

10Mopinion leaders

6MC-level execs

22MMass Affluent

4MIT decision makers

433Mprofessionals are on LinkedIn

The largest global community of professionals

Today’s Agenda

About LinkedIn Marketing Solutions

Marketing ROI defined

The curve of marketing math success

How LinkedIn measures beyond the lead

NewsCred ROI story

Customer MarketingBrand Marketing Acquisition Marketing

Focus today on Acquisition Marketing ROI

Marketing ROI Defined

Return (what you earned)

Investment (what you spent)

ROIReturn on

investment

ROASReturn on Ad Spend ROI

• Spend on paid media

+ (maybe)

• Creative cost

• Spend on paid media • Creative cost

+• Sales & marketing salary

cost• Systems cost• Incentive cost• Etc . . .

‘Fully Loaded’

‘Fully Loaded’ ROI adds more investment categories. For simplicity, most companies use ROAS to mean ROI.

The ROI calculation

Ad-sourced Revenue Ad spend ROIAd spend

Ad-sourced Revenue Ad spend ROI

Alternative: simplified version

Measuring ad spend = Easy Measuring ad-sourced revenue = Harder

Today’s Agenda

About LinkedIn Marketing Solutions

Marketing ROI defined

The curve of marketing math success

How LinkedIn measures beyond the lead

NewsCred ROI story

HubSpotThe Inbound Marketing Methodology

Inbound marketing is about using marketing to bring potential customers to you, rather than having your marketing efforts

fight for their attention.

The HubSpot Ads Add-OnIt’s inbound, Amplified

1. Your Ads, Inside HubSpot • LinkedIn Sponsored updates• Google AdWords• More on the way

2. Conversions over Clicks • Close the loop on reporting by

combining HubSpot and Ad Network Data.

3. Get More from Inbound • Drive more leads from your best

performing content and offers.

The Curve of Marketing Math SuccessMove from clicks to conversions

The Curve of Marketing Math SuccessMove from clicks to conversions

Putting the Math to WorkMove from clicks to conversions

InboundCampaig

n and Goal

Build Ads Conversion Funnel

Run the Numbers

Measure Success

Optimize

Start Here!

Putting the Math to WorkMove from clicks to conversions

InboundCampaig

n and Goal

Build Ads Conversion Funnel

Run the Numbers

Measure Success

Optimize

CPC/CTR

CPC/CTR

CVR

CVRCPA

Ads and Inbound through HubSpotEHS Insight Example

All results from ads after implement HubSpot ads and focusing on other key optimizations

EHS Insight increase ad conversions 90% with HubSpot Ads Add-On“Inbound and Paid campaigns absolutely must be in harmony to maximize the value for us. HubSpot Ads makes it much easier to keep an eye on both and to correlate the results of campaigns across channels. We can make better decisions in less time.”

Gary McDonald CEO, EHS Insight SMB - SoftwareHouston, TX HubSpot customer for 12-

months. Have used the Ads Add-on for 4-months to optimize, search and social ads inside HubSpot.

225% More Visits

90% More

Conversions

211%More Contacts

70%More MQLs

Today’s Agenda

About LinkedIn Marketing Solutions

Marketing ROI defined

The curve of marketing math success

How LinkedIn measures beyond the lead

NewsCred ROI story

Our Marketing Goals

MQLs for sales team

Marketing Qualified Leads (MQLs)

BookingsTraffic

Bookings $ from new customers

Quality traffic to our properties

How we measure ‘beyond the lead’

Inquiries (aka Leads)

Marketing Qualified Leads (MQLs)

BookingsOppsTraffic

Inquiries MQLs BookingsOppsTraffic

‘Last touch’ attribution

Individual inquiries tracked through to bookings $

Website Eloqua Salesforce

Systems enable measurement

Ad-sourced measures direct impact on new business

Influenced• Brand awareness• Retention / upsell• Pipeline acceleration• Sales enablement• Customer onboarding• NPS

Sourced• Field customers• Self Serve

activations

Manage to ROI by channel, using cost per X as a leading indicator to optimize more quickly

Inquiries MQLs BookingsOpps

Ad spend

Cost/Inquiry Cost/MQL ROICost/Opp

We track 1st year customer $ actuals for reporting, and use 1-3 yr projections for investment decisions

Ad-sourced

CustomerQtr 1

revenueQtr 2

revenueQtr 3

revenueQtr 4

revenueQtr 5

revenue

Labeled as “Ad sourced” in each reporting period Not labeled as “Ad sourced”

Optimizations and investment decisions are based on 1-3 yr profit projections

Mktg + Sales Customer

Acquisition CostProjected 1-3 yr

Margin LTV 1-3 yr ROI

Reaching our goals

113% to plan for MQLs in 2015

Marketing Qualified Leads (MQLs)

BookingsTraffic

30% of new biz sourced by marketing

72% of visitors to our site

Manager+

Content is core

EVENTS

CAMPAIGNS SOCIAL +ONLINE

CONTENT

Today’s Agenda

About LinkedIn Marketing Solutions

Marketing ROI defined

The curve of marketing math success

How LinkedIn measures beyond the lead

NewsCred ROI story

Lead generation using LinkedIn Sponsored Updates

Sales Cycle

A prospect gives names and contact

info

Lead Opportunity Closed Won DealName

After the prospect expresses real sales

interest

After successful meetings with

leads who show intent to buy

When a contract has been signed

Three steps to calculating ROICalculate cost per Name by channel

Calculate value per Name by channel

Calculate ROI by channel

# of Names by channel

Ad Spend by channel

Name Conversion rate by channel

Annual Contract Value (ACV)

Value of Name Cost per Name

1

2

3

Names from LinkedIn 50% more valuable than from AdWords

Sponsored Updates delivers 5X+ the ROI of AdWords

Channel ROI (Name value / Cost per Name)

LinkedIn Sponsored Updates 17.6

Native Ads 14.9

Google AdWords 3.1

Engaging the right professionals gets results

94%of B2B Marketers

use LinkedIn

to distribute

content 1 #1LinkedIn rated the top

social network for lead

generation 2

1 B2B Content Marketing, 2016 Benchmarks, Content Marketing Institute/MarketingProfs;2 The State of B2B Digital Marketing, Fall 2015, Demandwave

Q&A