ogilvy 360 digital influence conversationimpact 2009

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  • Nothing has been more important than developing a credible, workable measurement model for our social media-based programs at Ogilvy. Having participated in many of the forums where measure-ment geeks come together to test-drive their models, it became clear last year that we were all still in the first third of the process. If you think of the inevitable arc of standards development, the first third is floating meaningful measures - no matter how convoluted the model - marketers want to know that there are valuable metrics that even exist to justify spending in word of mouth-based social media.

    First Third of the Social Media Marketing Measurement Life CycleEveryone starts with KPIs (key performance indicators) they find compelling. We have 100,000 video views (over 1 month? 6 months? 1 year?). Our Facebook page has accumulated almost 30,000 fans/friends. Our blog mentions add up to a fat 2m UMVs (unique monthly views). KPIs are often with-out a lot of context. It is safe to say that we are passing through this phase.

    Second Third of the Social Media Marketing Measurement Life CycleAs critics punch holes - rightly so - in the pure KPI model, academic braniacs develop rigorous models in response. Walter Carl's work at ChatThreads (previously at Northeastern) seem to fit here. An extremely smart guy, all you have to do is spend a half hour with Walter and you will be convinced about the strength of his process for matchbacks and other techniques that really do ratify the spread of WOM. You will of course need to hire his company to actually apply the principles. These methods are persuasive, rigorous yet like the Eniac computer, they may require more effort and shelf space than most marketing programs can afford. So, we simplify. I am certain Walter is doing the same. That is the driving pressure behind our modelling at Ogilvy. Conversation Impact was developed to provide a credible and implementable measurement model that could be applied to most projects without a separate budget allocation. We needed a simple model that made sense to brand marketers. These simpler models are still in the early stages. It will be at least a year before 2-3 of them emerge as "leading" contenders. Ours is open to anyone to use and we will see if it gains velocity (presenting next month at ARF).

    Meanwhile, brands that explore the more complex and more meaningful measurement models inevi-table backslide into KPIs. You can hear it now from your most senior brand marketers, "Can't we just reduce all this complex modeling to 2-3 numbers we care about most? Numbers that reflect how much reach or how much time people are spending with the brand. What if we just count video views and Tweets?"

    Final Third of the Social Media Marketing Measurement Life CycleThis remains a glimmer in my eye. Once we have the solid and simple modeling out of the second third, we need to ramp up quickly for the inevitable: complexity. The real power of social media mar-keting is integrated into all sorts of communications and marketing - ALL sorts. What is the impact of social media mentions on the performance of adjacent advertising - does it make the ads perform 3x,

    The real power of social media media marketing is integrated

    into all communications and marketing

    I n t e l l e ct u a l ca p I ta l f r o m o g I lv y o cto B e r 2 0 0 9


    Conversation ImpactOgilvys Simple, Results-Driven Social Media

    Measurement Model for Marketers

  • Ogilvy insight 1

    Track the Few Metrics

    that Really MatterWith two-thirds of the worlds Internet population now visiting a

    blog or social networking site, driving results through social media

    has become an important component of the marketing strategy.

    To help guide brands on social media spending decisions, Ogilvys

    global social media marketing group, 360 Digital Influence, has

    developed and introduced a new business objective-driven model

    that provides a quantitative measurement framework for social

    media effectivenessConversation Impact.

    In developing Conversation Impact, we had Three Key Goals in mind

    The approach must allow for cross-channel performance comparison, 1. specifically including the social media channel

    The metrics must include actionable data for in-market 2. campaign optimization

    The model must be simple, objective-driven and cost-effective enough to 3. use for every campaign, social media and 360/multi-channel

    In addition to introducing the model below, the following sections walk through some specific considerations and objectives we worked through.

  • 2 Ogilvy insight


    Cross ChannelDe-emphasize metrics that dont allow apples-to-apples comparisons.

    Current approaches to advertising focus on measurement of such items as ad recall, ad reach, ad frequency, in-category brand aided/unaided recall (for evaluating awareness/consider-ation), intent to purchase and net promoter surveys (for evaluating preference); andfor measurable media such as online adsaction/conversion rates (for evaluating action or conversion).

    Traditional metrics are not readily applicable to the analysis of social mediabut are still being used. Reach/exposure (the number of people exposed to the message) is often used as a metric related to brand awareness, positioning and preference campaigns. However, word of mouth (WOM) is consistently trusted more than other forms of communication/marketing1, so direct CPM or impression-based comparisons are not useful.

    Another complicating factor is that simply applying an adjustment factor to a WOM mention is still not useful because of the varying influence levels of the conveyor of the message. That is, people trust messages differently based on context (which includes factors such as the person conveying message, tonality of message and specific content of the message).

    Finally, simply reporting activity metrics like page impressions, interactions and time does not help marketers determine whether or not a campaign was successful in driving their ultimate marketing or communication goals. Even measures of engagement cannot connect activity to core marketing goals.

    Conversation Impact simplifies and standardizes measurement in a way that is readily recog-nizable to marketers, while accommodating both conventional and new metrics and data that account for these differences in social media.

    1 emarketer Bridge ratings and university of massachusetts 2007.

  • Ogilvy insight 3

    There is rich data now available on a continuous basis, including daily data from the semantic analysis of the millions of conversations in social media. We integrate these analytics into the model to help drive optimization.

    As an example, for a brand positioning campaign, we can evaluate preference and action in ways that help us understand which social media influencers are adopting which types of messaging and in which channels. We look at what people voluntarily say and do across the social Web. We can use this data to help guide ongoing creative and spending decisions.2

    2 Source: BIgresearch SImm 14, June 2009.

    Provide Actionable Measurement that focuses on key goals

    Do you regularly/occasionally give advice to or seek advice from others about products or services you

    have purchased?2 n Moms n Adults 18+

    97.2% 94.9% 93.6% 91.5%

    Regularly/Occasionally give Advice Regularly/Occasionally seek Advice

    Figure 1: impacting Consumersgiving or seeking Advice with Purchases

  • 4 Ogilvy insight

    Use a model thats bothStrategic and Simple

    We organized our model directly around three main goal categories that build off years of marketing/communications funnel research into the best way to drive action:

    Reach & Positioning1. Preference2. Action 3.

    Table 1 presents the key representative measures within each of these categories.

    Some of these metrics are based on data from social media monitoring software; other metrics are obtained from server logs, Google and other analytics data, and surveys.

    3 Depending on volume and the prevalence of negative discussion, we may look at share of net positive voice,

    where net positive voice = brand positive mentions brand negative mentions

    table 1: Conversation impact Model with Representative Metrics

    metric/funnel goal >

    Reach & Positioning awareness consideration preference action loyalty

    umv blogs, site, microsite, applications, other, total #/% change

    volume of online conversation, #/% change, cost per online conversation generated (cpIcg)

    Share of voice in category (=volume for brand/vol-ume for category). #/% change, cost per Increase in Share of voice (cpISv)

    Search visibility (for relevant keywords)

    Preference awareness consideration preference action loyalty

    Sentiment index of online conversation (% posi-tive% negative), #/pts change, people reached vs. all, cost per Increase in Sentiment Index (cpISI)

    Share of positive voice in category (= brand positive mentions/category positive mentions), #/% change, people reached vs. all, cost per Increase in Share of positive Sentiment (cpISp)3

    relative net promoter score (npS) in category (=brand npS category npS), #/% change, people reached vs. all, cost per point Increase in npS (cpInp)

    Action awareness consideration preference action loyalty

    registration: rpa, cpa, $, #

    Sale: rpa, cpa, $, #

    advocacy: rpa, cpa, $, #

  • Ogilvy insight 5

    Reach & PositioningShare of tot