Join Geoff Ramsey (CEO, eMarketer) and Vipin Mayar (EVP, McCann Worldgroup), co-authors of the new book Digital Impact: Two Secrets to Online Marketing Success, as they outline creative approaches for engaging with consumers and share proven techniques for measurement that work for every digital channel. Following the presentation, Geoff & Vipin will take your questions in a relaxed Q & A format.

1. June 23, 2011 New York City eMARKETER Breakfast Geoffrey Ramsey Vipin Mayar

6. 65%

8. Marketers view of performance measurement

10. The most commonly used metrics – CTR/time spent cannot be used by themsleves The industry has not come up with a common definition of engagement that is aligned with brand business results and ROI. Performance measurement online : know the right metrics framework

12. Secret #2 gets at the problem of engagement with digital consumers

13. 4.4% 43% of consumers say they ignore or disregard banner ads more than any other type of ad. Source: AdweekMedia/Harris Poll, October, 2010

14. The classic interruption/disruption model of advertising is waning… We interrupt this program to sell you stuff We interrupt this programming to sell you stuff! “ We need to create experiences , not just sponsor content.” -- Frank Cooper, CMO, Pepsi “ Advertising is no longer about blasting the most messages to the most people. Instead, it’s about this: Ideas that spread, win.” --Seth Godin “ Marketers are focusing on creating Magnetic Content – so entertaining, relevant, informative or useful – it demands the consumer’s time and attention.”

16. The Magnetic Content approach turns targeting on its head.

18. 20% off Mens ’ Jeans 2-for-1 Sale!

19. What about B2B? Does content as marketing work in the B2B world?

21. Is it Unique?

22. Is it Useful?

23. Is it Fun? Home sales of blenders up 700% since the video series began!

24. Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Time on Page Page CTR Circular Paths Exit Rate Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate How do we optimize traffic? Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Does the media drive high quality traffic? Time on Page Page CTR Circular Paths Exit Rate How do we improve our creative? Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comments Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Do we have the right site content? Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Is site navigation working as intended? Time on Page Page CTR Circular Paths Exit Rate Click-Thru Rate Cost Per Lead Cost per Click View-Thrus Reach Interaction Rate Leads Frequency Impressions Share of Voice Downloads Conversion Rate Comment Forward Return Visits Bounce Rate Time on Site Page Views Video Views Registration Rate Evaluating display ads Time on Page Page CTR Circular Paths Exit Rate Too many metrics… big challenge is deciding the right metric

25. Start with the measurement framework Perceptual & Behavioral Outcomes Financial Outcomes Marketing Investment LINKAGE LINKAGE LINKAGE

26. Key campaign metrics - example Financial/business metrics used to quantify business performance Low level measures related to performance of individual channels Customer/brand activity metrics at the program, segment, and product level ROI Exposure Metrics Strategic Metrics Financial Metrics

29. Engagement Score aligned to the objectives of the content Widgets, Download apps Profiles, Upload pictures Send to friend, Social media Signup, Email, Coupon, WTB Rate, Vote, Add comments Play videos, Demos Content, Pictures HIGHER VALUE LOWER VALUE Engagement Value Continuum Extend ILLUSTRATIVE ENGAGEMENT

30. Illustrative points for engagement Engagement Index Methodology 1 Point 1 Point 1 Point 1 Point 1 Point 2 Points 1 Point 2 Points 3 Points 3 Points 2 Points 3 Points 1 Point 2 Points 2 Points 1 Point 1 Point 2 Points

31. Qualified Engagement and Visit Threshold Qualified Visitors Allows you to determine engagement thresholds Gain in Engagement Below Threshold Do Not Drive Behavior Use Engagement Score and Qualified Visits in your digital measurement

32. Applying Magnetic Content and Performance Measurement to the Six Digital Channels Social Display

33. Digital Channel#1 Social Media: Connections that Count What % of Internet users go to social sites?

34. % of US Internet users who participate in social networks (2010) Source: eMarketer, 2011; *with some level of frequency

35. 20% NOT using social?!?

36. Social media spending will continue to skyrocket in 2011 10% of total US online ad spend 33% of display impressions* 17% of display ad dollars** *comScore, 2011 **eMarketer, 2011 It ’ s less about buying social media, and more about how you can earn and own it! It ’ s all a matter of TRUST Consumers trust each other more than they do marketers

40. “ By listening carefully, we harness social media as an early alert system.. so we can react quicker to issues.” --Richard Brinhammer, Dell

43. New strategy… ESCALATE

44. Adobe, I hope you’re listening, because I’ve got a problem…

45. Add value to the conversation…

46. Censored Unique Useful Well executed Fun Great use of channel

49. Marketers also believe Social Media is a key driver of brand awareness and affinity, but not so much sales

50. Applying our framework to social media Perceptual & Behavioral Outcomes Financial Outcomes Marketing Investment LINKAGE LINKAGE LINKAGE A “like” is not the end game

52. Once you have the right set of metrics, can you get to ROI? Access to a purchase is required Visibility into Purchase through either Self stated Matching to transaction database Capturing online purchase

54. ROI approach illustrated with an example Consumers Incremental Sales Lift Incremental Revenue Cost ROI Value $1,480,449 5.4 to 1 77,753 $9,457,414 500,000 Profit $8,019,414 Primary goal Acquire new prescriptions Incremental sales from test Sales data obtained from panel Approach Used panels for, incremental prescriptions from site visitors Prescriptions X price Price X margin Loaded costs Profit/costs Unique visitors from site tool

55. Digital Channel #2 Display: The Branding that Creates the Intent

57. Awareness Interest Attitudes Perceptions Pre-purchase info gathering Transaction Display ads create the demand, while search ads capture that demand… 88% of Internet users shop and research online prior to buying --eMarketer, 2011 Not just search engines Opportunity to influence prospects even before they do any research!

58. Online display ads can drive consumer activity – but you need to measure it! Do a Search Visit Website Purchase Over time Online display ads drive 44% of ultimate online transactions, whereas paid search drives only 27% --C3 Metrics Labs, Jun, 2011

60. Creative execution counts

61. Use display ads (“paid media”) to drive consumers to your Magnetic Content

62. Display landscape becoming increasing complex Integration of many data sources + real time placement + Complex analytics for testing & optimization Premium Publishers The ostrich effect Demographic Psychographic Geographic Behavioral Client

63. Key campaign metrics - example Financial/business metrics used to quantify business performance Low level measures related to performance of individual channels Customer/brand activity metrics at the program, segment, and product level ROI Sales Volume Exposure Metrics Strategic Metrics Financial Metrics

66. 2. The campaign hierarchy must capture all drivers of performance Pricing Targeting Property Placement Creative Concept Creative Technology Creative Concept Version Offer / CTA CPM Contextual Yahoo News Concept 1 Flash Concept 1A Coupon CPC Geo/demographic CNN Sports Concept 2 Video Concept 1B Widget CPA Retargeting Facebook Fashion Concept 3 Rich Media Concept 1C Sweepstake

67. 5. Use modeling to determining attribution and true ROI Total Input Contributions Search contributed 17% of the explained variation in Display ads

69. Believe in the Magic of Engaging and Measuring “ Thank You” VIPIN [email_address] TWITTER: @vipinmayar GEOFF [email_address] TWITTER: @geofframsey