The New CMO – Cross Media Optimization

Craig Macdonald, CMO and SVP of Productscmacdonald@covario.com

Relationship between Paid and Organic Search

• Loss of traffic during test• Measurement confounded by

other factors– Cyclical patterns– Other marketing actions

(yours and competitors’)– Economy, weather, etc.

Relationship between Paid and Organic Search

y = -0.9473x + 0.0949

8.0%

8.2%

8.4%

8.6%

8.8%

9.0%

9.2%

9.4%

9.6%

9.8%

10.0%

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4%Paid CTR

Org

an

ic C

TR

Relationship between Paid and Organic Search

Conclusion

• Measurement of keyword level performance for paid and organic with tagged landing pages

• Requires experimentation

• Result: 15–20% of paid search spending is mis-targeted

Affiliate Programs

Affiliate Programs

Affiliate Programs

Paid Organic

• 50% rev increase January over November

• Daily average revenue increase 150% from November to January

• Conversion rate increase up 34%

• 50% rev increase January over November

• Daily average revenue increase 150% from November to January

• Conversion rate increase up 34%

Conclusion

• Tagging for affiliate vs. direct traffic required

• Requires experimentation

• Result: 35% higher returns for 33% less cost

Display and Search

ROI impact of synergized TV-Search marketing — SuperBowl

Online Offline

Online Offline

• Search campaigns launched with consistent messaging

• Huge ad relevancy, traffic, and ROI gains seen immediately

• Traffic lift persisted beyond ad flighting

500% CTR increase

20% Showed Purchase

Intent

TV Spots

Challenges

• Testing and experimentation expertise

• Flexible measurement environment

• Governance structure

• Incentives

What Has Changed?

• Digital growth at 5–10% level (down from 35%+ growth)• NO headcount increases• Squeeze 15% cost improvements out of programs• 3 month payback periods, max

DJIA NASDAQ

Maturity Model

Fragmentation

Channel Specific Process

Channel Optimization

Centralization

Cross Media Optimization

Cross Media Optimization

Portal

Web, Email, Personalized Reports

Platform

Security, Administration, Business Rules, Workflow

Database

Multi-Dimensional, OLAP

Data Integration Platform

Modular Applications

Search, Display, TV, Print, Social Media, etc

Dir

ec

tC

ha

nn

el

Search

SearchMobile

Content Targeted

Print

MagazinesTrade PubsNewspapers

Display

VideoBanners

Rich MediaGadgets

Social

Community SitesBlogs

Radio

CommercialSatellite

TV

NetworkCableDigital

Cross MediaOptimization

Predictive Modeling

Ability to develop forecasts of outcomes to marketing events

Constraint-based Optimization

Impact analysis on how budget and inventory constraints limit goal attainment

Scenario Analysis

Ability to conduct “what if” analysis to determine impact of strategic changes

Deployment

Integration with execution systems to enable optimal strategies

Getting Started

• Investment in web analytics

• Develop experimentation strategy

• Digital Center of Excellence

• Build success and knowledge — then scale