Brave, New Multi-Channel World Implementing & Measuring Integrated, Multi-Channel Campaign Strategies

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1 Brave, New Multi-Channel World Implementing & Measuring Integrated, Multi-Channel Campaign Strategies PRESENTED BY RICHARD BECKER, PRESIDENT TARGET ANALYTICS

2 Agenda The Marketer s Dilemma: How to Measure Cross Channel Effectiveness The Impact of On-line Advertising on Direct Mail Response Use Case Review #1: International Relief Organization Targets Active & Lapsed with Gift Request #2: Animal Welfare Organization Targets Active & Lapsed with Sustainer Request Best Practices in On-Line Advertising & Multi-Channel Marketing Q & A 2

3 The Marketer s Dilemma: How to Measure Cross Channel Effectiveness 3

4 Advertising effectiveness in question GM Will Remove $10 Million Worth Of Ads From Facebook Wednesday, May 16 th Wall Street Journal Mere days before Facebook goes public, General Motors announced that it will pull $10 million in advertising from the social media site. GM execs told the Wall Street Journal they're not getting appropriate bang for their buck from Facebook's paid ad content. 4

5 Traditional measurement techniques Typical On-line Advertising Results Click Thru 0.4% Conversion 0.005% Return-on-Ad-Spend 0.25 : 1 4 clicks per 10,000 impressions served 1-2 conversions per 100,000 impressions served 25 cents per $1 spent 5

6 Traditional models of on-line advertising Topic and Interest Targeting Target users from predefined interest categories, inferred from a user browsing history Keyword Contextual Targeting Use keywords to find web pages for your ads across your ad network Remarketing / Retargeting Target ads to people who have previously visited your website as they browse other web sites Self Reported Data Targeting Target ads based on information volunteered by the user via a membership form or user profile Location Based Targeting Target ads based on a user s geographic location Demographic Targeting Target ads based on a user s estimated age, income, gender, etc. 6

7 Limitations of traditional on-line advertising Key Limitations Advertising based on inferences of affinity, interest, and capacity, not previous philanthropic behavior or organizational affinity Advertising is delivered to unknown recipients, limiting the ability to measure its effectiveness on stimulating other on-line and off-line channels Advertising is centered on the on-line actions of web users, such as previously visiting your website, a very limited perspective that does not account for previous philanthropic related behavior or affinity 7

8 The impact of on-line advertising on direct mail response 8

9 Moving to targeted advertising Targeting moves from Where they are on-line to Who they are. You no longer have to rely on inferences or demographic profiling to determine who received advertising. Now, you can target prospects based on philanthropic behavior driven predictive modeling. Target the same prospects on-line as you do off-line. Reinforce your brand with the same prospects you are mailing, telemarketing, or targeting with other 1:1 marketing channels. Create response lift across all channels by using true integrated, multi-channel marketing. Measure on-line advertising effectiveness. Understand exactly how brand impressions on-line affect donor behavior across all solicitation channels. For example, measure how brand impressions on-line lift direct mail performance. 9

10 How it works - conceptual Your Organization s Target Prospect List Your Active Donor File Your Lapsed Donor File Your Acquisition Marketing List Any List Source Consisting of Name & Postal Address On-Line Matching Matches Your Input List to On-line Users to a Network of On-Line User Profiles Advertising Served to Your Target Prospect Wherever your Target Prospect Goes on the Web, Serve Them Advertising

11 Why it works Reinforcing the brand to build awareness, favorability, and consideration is often overlooked Direct Marketer focus is focused on the transaction

12 Use case review 12

13 Use Case #1 - Introduction Client International Relief Organization Campaign Objective Complement direct mail campaign targeting active & lapsed donors with on-line display advertising, serving direct mail recipients advertising impressions during 3 month direct marketing campaign Improve overall campaign response and donations as a result of on-line advertising Realize a minimum 1:1 return on advertising spend (ROAS) Campaign Scope # of Household Records Mail File 1,006,374 Campaign Duration 3 Months Campaign Timing October 3, 2011 December 31, 2011 Digital Campaign Spend $50,207 Cost per Thousand Impressions $9.60

14 Use case #1 Brand Exposure Brand Exposure Total Mail File - # of Households 1,006,374 Total # of Households with Cookies 518,402 % of Mail File with Cookies 51.5% Total # of Households Served Ads During Campaign 183,160 % of Mail File Served Ads 18.2% % of Mail File with Cookies Served Ads 35.3% # of Ads Served 5,229,916 Average Number of Ad Impressions Per Household 28.6 Average Number of Ad Impressions Per Household Per Month ,160 Households were delivered 5,229,916 Ad Impressions Over 3 Months

15 Use Case #1 On-line Performance Click Thru & Click View Activity Total # of Households Served Ads During Campaign 183,160 # of Ads Served 5,229,916 Total Unique Households with Click Thru 2,003 Households with Click Thru as a Percent of Total Households Served Ads 1.09% Click Thru Based Conversions 16 Conversion % (Click Thru Based Conversions as a Percent of Total Click Thru) 0.8% Click Thru Based Revenue $1,244 View Based Conversions 644 Conversion % (View Based Conversion as a Percent of HH Served Ads) 0.4% View Based Revenue $93,091 On-Line Only Activity Associated with Connection360 produced 660 donors and $94,335 in donations, yielding an On-Line Only Return on Ad Spend of 2:1

16 Use case #1 Total Campaign Lift Test vs. Control Affect of Advertising on All Channels Control Cookie No Ad Served Test Cookie Ad Served Unique Households 183, ,160 - Lift Total Conversions 12,999 16,642 3,643 Total Revenue $906,729 $1,165,136 $258,407 Total Conversion Rate 7.10% 9.09% 28.0% $ Per Household $4.95 $ % Average Gift Per Donor $69.75 $ % Total Activity Associated with Connection360 produced 3,643 donors and $258,407 in donations, yielding an Total Return on Ad Spend of 5:1

17 Use case #1 Performance Summary Return on AD Spend (ROAS) $50,207 Ad Spend $258,000 Incremental Revenue 5:1 ROAS Return on ad spend of 5:1. $50,207 cost against $258,000 in incremental revenue Response Rate 7.10% Control Group: No Digital Ads 9.09% Test Group: Digital Ads Served +28% Response rates were 28% higher for those that were served banner ads than the control $ per Household $4.94 Control Group: No Digital Ads $6.36 Test Group: Digital Ads Served +29% The $69 average donation was comparable between test and control; $$ per HH was 29% higher for the test group

18 Use Case #2 - Introduction Client Animal Welfare Campaign Objective Complement direct mail campaign with on-line display advertising, serving direct mail recipients advertising impressions during 3 month direct marketing campaign Improve overall campaign response and donations (and specifically optimize sustainer donations) as a result of on-line advertising Realize a minimum 1:1 return on advertising spend (ROAS) Campaign Scope # of Household Records Mail File 1,399,508 Campaign Duration 3 Months Campaign Timing December 20, 2011-March 12, 2012 Digital Campaign Spend $75,756 Cost per Thousand Impressions $9.00

19 Use case #2 Brand Exposure Brand Exposure Total Initial Mail File 1,399,508 Total # of Targetable Households after DLX match 1,343,963 Total # of Targetable Households with Cookies 867,695 % of Targetable Households with Cookies 65% Total # of Households Served Ads During Campaign 306,027 % of Targetable Households Served Ads 23% % of Targetable Households with Cookies Served Ads 35% # of Ads Served 8,417,329 Average Number of Ad Impressions Per Household 27.5 Average Number of Ad Impressions Per Household Per Month 9 306,027 Households were delivered 8,417,329 Ad Impressions Over 3 Months

20 Use case #2 Total Campaign Lift Test vs. Control Affect of Advertising on All Channels Test Gift Type Conversions % Conversions Avg. Donation 12 Month Value Total Revenue One-Time 15, % $38 $38 $605,067 Sustainer 1, % $30 $362 $651,124 Other % $27 $27 $1,113 Total 17,735 $1,257,303 Control Gift Type Conversions % Conversions Avg. Donation 12 Month Value Total Revenue One-Time 15,181 91% $38 $38 $577,874 Sustainer 1, % $30 $362 $534,972 Other % $27 $27 $822 Total 16,689 $1,113,667 Total Activity Associated with Connection360 produced 321 additional sustainer donors and $143,636 in donations, yielding an Total Return on Ad Spend of 2:1

21 Use case #2 Performance Summary Response Rate 5.46% Control Group: No Digital Ads 5.80% Test Group: Digital Ads Served +6.3% Response rates were 6% higher for those that were served banner ads than the control $ per Household $2.05 Control Group: No Digital Ads $2.16 Test Group: Digital Ads Served +5.4% $ per HH was 5% higher for those that were served banner ads; average gift per donor was comparable % Donations via Web 9.3% Control Group: No Digital Ads 12.5% Test Group: Digital Ads Served +34% Gifting via the web for the test group represented a 34% increase versus the control

22 Best Practices in On-Line Advertising & Multi-Channel Marketing 22

23 Key Ideas The ad should strive to accomplish 3 things: Drive brand awareness Communicate cause message & reason to donate Clear call to action Your campaign should adhere to these 3 things: Effective multi-channel marketing must be integrated Only use marketing channels with clear performance measurements Prior philanthropic behavior is the best indicator of future philanthropic behavior 23

24 Best practices Do s and Don ts Do: Use strong brand reinforcement with prominent brand name display - CLEAR Do Not: Use intrigue in an effort to get people to click thru Do: Keep the message simple, with an obvious call to action URGENCY Do Not: Promote social media or other intermediary steps to your desired outcome Do: Use imagery to compliment your effort to reinforce your brand USE EMOTION Do Not: Use imagery that does not involve a living person or animal Do: Use consistent creative across all landing pages and off-line media CONSISTENCY Do Not: Treat on-line advertising as a stand-alone channel, it exists to reinforce your brand Do: Make the donation form and landing page as simple as possible - SIMPLICITY Do Not: Drive click thru s to your homepage or page other than the donation page Do: Use rich media, flash, and color to attract attention BOLD Do Not: Use white as the background for your on-line ads 24

25 Great Creative

26 Great Creative

27 Questions? Contact a Target Analytics Representative today! solutions@blackbaud.com. 27