maximizing demand using the optimal online medie mix final version 2

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1 Maximizing demand by using the online media mix Ulrik Zielfelt - TradeDoubler

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  • 1. Maximizing demand by using the online media mix Ulrik Zielfelt - TradeDoubler 1
  • 2. En samlad uppfattning bland de digitala mediechefer SvD Nringsliv har pratat med r att mediesajter har halkat efter i produktutvecklingen och drmed misslyckats med att frklara ntets frtrfflighet som kommersiellt medium fr annonsrerna, vilket blir extra synligt i lgkonjunkturen SVD 18 april 2009 2
  • 3. Setting the frame work In the online environment everything is measurable thus, we tend to overstate channels that generate direct results & understate channels that does not! 3
  • 4. Last click We tend to base our investment decisions on the last click & neglect other Other interactions interaction but the last click is First click only the top of the ice berg
  • 5. Comparison of Methodologies The traditional way of evaluating Online media channels Awareness Interest Consideration Purchase Direct attribution 5 =Unit sold
  • 6. Comparison of Methodologies The holistic way of evaluating Online media channels Awareness Interest Media mix modelling Consideration Purchase 6
  • 7. An example to set the stage! Research suggests display measured by itself = understated (conversion 1x vs. 4x). 22% paid search is the ultimate demand capture mechanism, but it can't create awareness for the products and the services Robert Murray, CEO at iProspect, Boston 7
  • 8. Example Affiliate Program 30% Source: Tradedoubler study of 580 user journeys in the James Villas affiliate program 2008
  • 9. Example Affiliate Program Source: Tradedoubler study of 580 user journeys in the James Villas affiliate program 2008
  • 10. How do I assemble a strategy that maximizes demand & results?
  • 11. Mediamix modelling the true ROI SEK 2009 2010 Total Programme Revenue 9,669,231 25,886,538 Spend 1,338,000 2,370,000 Cost of Sales 14% 9% Rev ex channel costs 8,331,231 23,516,538 Number of sales 8,858 19,658 Cost per sale 151 121 Affiliate Transaction Revenue 1,920,000 7,200,000 Spend 288,000 720,000 Cost of sales 15% 10% Rev ex channel costs 1,632,000 6,480,000 Mix of spend 22% 30% Campaign Revenue 549,231 686,538 Spend 450,000 450,000 Cost of Sales 82% 66% Rev ex channel costs 99,231 236,538 Mix of spend 34% 19% Search Spend Revenue 7,200,000 18,000,000 Spend 600,000 1,200,000 Cost of Sales 8% 7% Rev ex channel costs 6,600,000 16,800,000 Mix of spend 45% 51% 11
  • 12. User Journey Analysis - Understand the vehicle contribution
  • 13. Key take aways Analyze your data properly Take the full picture into consideration when investing in different vehicles! Learn to understand the contribution of different vehicles & levers in the purchase desicion funnel 13