Analytics for CMOs on the Rise

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Kathy Bachmann, Executive Vice President and Managing Director for Americas at MarketShare, discussed what it takes for marketers to understand the future of the global marketplace during her presentation at the 2015 Chief Marketing Officer Leadership Forum in Los Angeles on Jan. 27. In her presentation, Bachmann noted that the rising demand for marketing data has led many marketers to leverage sophisticated technologies, but marketers must understand how to optimize these tools to bolster their marketing campaigns.

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Analytics for CMOs on the Rise

  1. 1. MarketShare confidential and proprietary 1 Analytics for CMOs on the Rise Kathy Bachmann EVP Americas, MarketShare January 27, 2015 Argyle Chief Marketing Officer Leadership Forum
  2. 2. MarketShare confidential and proprietary 2 MarketShare • Industry-leading analytics solution for CMOs • Resource allocation, budgeting, cross-media attribution • Leveraged by 8 of the top 10 global brands • Directs over $30B in media this year • Top-scoring in Forrester Research report on marketing analytics, 2 years in a row Los Angeles San Francisco LondonNew York Bangalore Tokyo
  3. 3. 3 Data-Driven Opportunities Data-Driven Challenges
  4. 4. MarketShare confidential and proprietary 4 Welcome to Data-Driven Marketing! Empowerment “Oversight”
  5. 5. MarketShare confidential and proprietary 5 Data-Driven Promise “The two roles that matter most for 2015 are the CIO and the CMO—their relationship and joint strategy to boost the business will determine the future of any corporation.” – Cliff Condon, Forrester Research, December 2014 “CMO tenure has been on the rise for the past seven years.” – Spencer Stuart CMO Tenure Study, March 2014
  6. 6. MarketShare confidential and proprietary 6 Data-Driven Perils “Unless the CMO demonstrates the value that marketing is delivering and clearly shows the return on investment…The CMO could find himself out of the job.” - Raja Rajamannar, CMO, MasterCard 65% of marketers feel “increasing pressure to prove the value of marketing"from senior leadership. “There is an expectation that [marketing today is] more measureable, more targeted and therefore more effective. This has made everybody’s expectations higher.” - John Hayes, CMO, American Express
  7. 7. 7 Are You Meeting the Challenge?
  8. 8. MarketShare confidential and proprietary 8 We Bought Into Integrated Customer Experiences…
  9. 9. MarketShare confidential and proprietary 9 …and Integrated Marketing…
  10. 10. MarketShare confidential and proprietary 10 …But Haven’t Achieved Integrated Measurement Source: Econsultancy in association with Oracle Marketing Cloud, August 2014 67% 43% 19% Priority: Cross-Channel Integrated Marketing Understand Customer Journeys & Can Adapt Mix Measure Financial Results of Cross- Channel, Integrated Marketing
  11. 11. MarketShare confidential and proprietary 11 Unfortunately, accurate measurement is not so simpleUnfortunately, accurate measurement is not so simple 2005 2013
  12. 12. MarketShare confidential and proprietary 12 2020 35 zettabytes Explosion of Data Requires Sophisticated Measurement as much Data and Content Over Coming Decade 44x Sources: The Guardian, May 2010 IDC Digital Universe, 2010 IBM Institute for Business Value, 2009 IBM CIO Study 2010 TDWI: Next Generation Data Warehouse Platforms Q4’09 2009 800,000 Petabytes 2020 35 Zettabytes Business leaders frequently make decisions based on information they don’t trust, or don’t have1in3
  13. 13. MarketShare confidential and proprietary 13 Meanwhile, Digital is Changing the Face of Branding Source: eMarketer, May 2014 Nearly 3/5 digital $ for branding Branding 41% Direct Response 59%
  14. 14. MarketShare confidential and proprietary 14 And Addressable Transforms Measurable Media • 40M US addressable TV homes in 2016 -Dave Morgan, CEO Simulmedia in AdAge • Connected-home device sales to drive over $61B revenue in 2015 - Business Insider Research • Wearables shipments hit 112M units in 2018 (20M in 2014) - IDC
  15. 15. MarketShare confidential and proprietary 15 The New Questions for the Data-Driven CMO  How do I achieve ROI?  How do I get credit (and not get blamed unfairly)?  How should I focus on the big picture—and on the right details?  How do I choose the right mix from the choices I have?  What information should I be include that I’m ignoring today?
  16. 16. 16 We Need a New Measurement Approach Where Each Marketing Program Gets the Credit it is Due
  17. 17. MarketShare confidential and proprietary 17 The CMO Imperative  Better decisions through better analytics – at scale  Quantify revenue impact of marketing, sales, & promotional investments  Predictive guidance: What and how to invest, next moves, & what will happen  Cut through complexity of multi-channel, multi-market companies to unearth true revenue drivers
  18. 18. MarketShare confidential and proprietary 18 Analytics 1.0: Where we began Media Mix Models Digital ROI/attributionSilo-based, campaign-based Media-centricSamples of data Focus on eyeballs, ratings Backward-looking Hard to convince Finance to believe One-off Analysis Annual Executed by boutiques
  19. 19. MarketShare confidential and proprietary 19 Analytics 2.0: A New Era in Decision-Making Iterative and ongoing Real-time course-correction Across all business drivers, not simply media Fact-based decision-making Shifting from Eyeballs to Outcomes Forward-looking Bridging Marketing & Finance Enterprise software-based
  20. 20. MarketShare confidential and proprietary 20 “Led by a merger of attribution and marketing mix modeling, new tools will consolidate and integrate into a new marketing optimization platform” - Jim Nail, Forrester Research
  21. 21. MarketShare confidential and proprietary 21 Where Do We Go from Here? 5 Key Lessons
  22. 22. MarketShare confidential and proprietary 22 1. Ditch the Antiquated Measurement Models. Social Media $33 Paid Search Banner Ad $100 TV Spot $50,000 Print Ad $33 TV Spot $50,000 TV Spot Paid Search Paid Search $33 Email Blast Affiliated Referral $100 Success $100 Organic Search $100 Success $51,100 Success $50,000 Success $100 Last Channel Credit All Channels Equal Credit All Channels All Credit First Channel Credit
  23. 23. MarketShare confidential and proprietary 23 2. Consumers Don’t Swim in “Swim Lanes” $100 Million Sales Discrepancy Print TV Display Search Social Social Search Display TV Print Complete Picture
  24. 24. MarketShare confidential and proprietary 24 3. Consider Brand Impact.
  25. 25. MarketShare confidential and proprietary 25 4. It’s Not Just Marketing Inputs
  26. 26. 5. Technology + Analytics = Seeing Things We Could Never See
  27. 27. MarketShare confidential and proprietary 27 Kathy Bachmann EVP Americas, MarketShare www.MarketShare.com @MarketShareCo kbachmann@marketshare.com

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