How leading brand marketers are placing big bets on data and analytics to drive sales and beat
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1 SPECIAL SECTION Contributed by Gar Smyth, Merrily McGugan, and Priti Ohri IT S TIME TO DOUBLE DOWN ON DATA How leading brand marketers are placing big bets on data and analytics to drive sales and beat SHUTTERSTOCK.COM the competition ANA.NET // 9
2 In a fragile economy, investors typically divest from stocks and bonds and invest in lower-risk securities such as gold. For marketers looking to invest wisely in the tumultuous consumer market of 2016, data is the new gold. When used correctly, data lessens marketing risk and delivers improved returns on marketing investments. Data and analytics also provide the swiftest route to securing a resilient competitive advantage in the current crowded and commoditized market. In the past, leveraging next-generation data science to improve marketing results was framed as an insurmountable challenge rather than a math problem waiting to be solved. Today s leading marketers welcome data and distance themselves from guesswork and historical precedents. Heather Dumford, global marketing director of media at ConAgra Foods, has become a strong advocate of data-led marketing after observing the role data and analytics played in helping ConAgra exceed projected sales targets. To those beginning to weigh the pros and cons of a preliminary investment, as well as those who have already gone all-in on data and analytics, she offers this advice: When it comes to becoming a more data-driven marketer, test and learn is key. Don t be afraid to fail. Just make sure you do it quickly, and apply your learnings to future efforts. (See the Q&A ConAgra s Appetite for Data, below.) For marketers like Dumford, turning data into actionable insights that help the business move forward is high on the agenda and if it is not already a priority for every CMO, it should be. A number of tools, products, services, and resources already exist to help marketers get the most from their data. Data and marketing analytics providers, managed service partners, and/or self-service programmatic technology platforms can all be used to overhaul a brand s customer experience and marketing strategy. The cost of implementing data and marketing analytics technologies is typically ConAgra s Appetite for Data ConAgra Foods is one of North America s leading packaged food companies. Creator of American classics like Chef Boyardee, Slim Jim, and Hunt s, ConAgra Foods also has a strong B-to-B presence and employs more than 33,000 team members around the globe. The Fortune 500 company is in the process of moving its world headquarters to Chicago, Ill., from Omaha, Neb., but that is not the only shakeup in the works at ConAgra. Heather Dumford, global marketing director of media at ConAgra Foods, is a five-year veteran of ConAgra s marketing department and a strong supporter of the company s innovative, data-led marketing strategy. ConAgra Foods is an early adopter of analytics and technologypowered marketing within its peer set. Dumford believes data and marketing analytics have a crucial role to play in the future of marketing. M.M. Why has ConAgra s marketing department so firmly embraced Q data and analytics? Data and analytics have become a central part of ConAgra s marketing approach. They allow us to narrow in on the right consumer, A drive creative strategy, and optimize based on performance. Ultimately, this combination ensures our marketing is as effective as possible. Insights are a big benefit of data-driven marketing. How were you Q able to use insights that you ve uncovered through data-driven marketing? For one of our ConAgra brands, we used sales results to drive A creative decision making. By using data frequently, we were able to exceed projected volume results. Cross-device is a hot topic for brand marketers in How Q does ConAgra view the importance of cross-device communications when it comes to engaging consumers? Cross-device measurement is essential in enabling ConAgra to see the individual consumer experience across all touchpoints. A This measurement ability increases our effectiveness at ad frequency management and messaging sequencing, as well as ensuring more accurate analytics. What other topics or challenges besides cross-device will impact Q your marketing team or other marketers in the year ahead? At a high level, ConAgra s biggest bets with partners will be A acquiring the best and most relevant data available to drive insights and strategy for our marketing. We also leverage trusted partners to help our team create incredible content and rely on them to feed us back data to analyze effectiveness and then optimize. At a tactical level, we are interested in the following in 2016: Evolving addressable TV and programmatic TV Eliminating fraud from our digital efforts Working with partners to create unique experiences for consumers that create buzz for our brand portfolio What is one tip you d give to marketers who are interested in Q becoming more data-driven? Test and learn is key. Don t be afraid to fail. Just make sure you A do it quickly, and apply your learnings to future efforts. This is the key to success and can only be done with enterprise-wide solutions and partners like DataXu, rather than companies that operate in silos. How do you feel ConAgra compares to its competitive peer set in Q terms of leveraging data and analytics in the marketplace? Based on what we understand others are doing in this space, we A are always working to take everything one step further. Our approach is to always put data and technology at the center of our marketing. We believe our storytelling and creative are incredibly important but also believe that they can continue to improve and become even more relevant when driven by data. 10 // ASSOCIATION OF NATIONAL ADVERTISERS
3 SPECIAL SECTION outweighed by the benefits, which include, among other things, more accurate consumer identification, better targeting across devices, more efficient and effective marketing budget utilization, increased incremental sales, and an improved return on marketing investments. Here, DataXu, a data and analytics technology provider for marketers, offers five data-centered strategies already in use by many of its customers that can help marketers drive new wins and maximize returns on marketing investments. CASH IN ON UNTAPPED DATA Digital communications make it easier than ever for marketers to amass data that has the potential to shape future digital advertising for the better. The marketing challenge lies in aggregating billions of these data points and organizing them into actionable insights. Successful brand marketers recognize their strengths and weaknesses when it comes to data science and analytics. In order to access the talent and technology required to aggregate and analyze vast quantities of previously untapped data, top marketers leverage the expertise of big data technology firms. Alongside the guidance of such experts, marketers will be able to unearth valuable consumer insights hidden within their data. Marketers can use these previously undiscovered insights to better understand their customer and increase engagement at a one-to-one level. Leading technology partners will offer to supplement firstparty data with second- and third-party data options within their platforms so that brand marketers can further curate custom audiences. ::CASE STUDY Data Science Drives ROI Increase for Lexus For every brand with a fragmented sales model, knowing how to allocate digital ad investments at the local level can be a constant challenge. Unfortunately, the cost of not knowing is just too high. Invest too little, and the advertising won t drive enough prospects to regional outlets, affiliates, or partners. Invest too much and it may create oversaturation. G.S. Challenge Lexus agency, Team One, wanted to understand the best way to invest across the 110 markets in which Lexus has a presence. This question touched both new car and certified pre-owned spend across each of these markets, effectively doubling the scale of Team One s challenge. Solution Team One and data and marketing analytics partner DataXu devised a strategy to solve Lexus challenge. Using the DataXu programmatic marketing platform, 12 investment pulses were identified in markets that are representative of the 110 total markets in which Lexus has a presence. The data derived from the investment pulse framework was used to create a response model for different investment levels, providing unprecedented insight into how different markets react to Lexus marketing messaging. Based on this deep-dive analysis, Team One was able to extract a set of investment recommendations for each of the 12 markets to drive media efficiency and over-deliver on regional campaign goals. Results The Lexus Dealer Association began implementing Team One s investment recommendations within weeks and the outcome was immediate. As a result of restructuring its regional marketing investments and success metrics based on data science and analytics, Lexus experienced stunning results, including 63 percent better conversion volume and 28 percent global KPI improvement. Leading with a data-driven marketing strategy in 12 regions helped Lexus beat out local competitors and deliver an unusually strong quarter of sales results. SPEND ALLOCATION BY CHANNEL: PRE-MARKET PULSE, VS. POST-MARKET PULSE Using DataXu s Market Pulse technology, Lexus was able to test its current spend allocation across 12 markets to see if it was maximizing return on existing investments. Market Pulse showed that some channels required additional spend to maximize sales, while some channels would benefit from reduced spend as they were not returning incremental sales. DISPLAY CURRENT SPEND BY CHANNEL MOBILE SOCIAL DISPLAY OPTIMIZED SPEND BY CHANNEL MOBILE SOCIAL REWRITE THE SUCCESS METRICS RULEBOOK Data allows modern marketers to redefine how they quantify success. The littleknown truth is that some metrics, such as TV SEARCH OUT OF HOME TV SEARCH OUT OF HOME ANA.NET // 11
4 Digital mar ket ing JULY sp AU en G Programmatic TV and addressable linear impression-by-impression level TV buying may be new to the industry, but that hasn t stopped innovative brands from becoming early adopters and targeting select U.S. households via addressable and connected television. Leading-edge marketers respect the magic that the combination of sight, sound, and motion has always provided for traditional TV 52% New auto shoppers who engaged with brands due to online behavioral advertising. OCT 9% 10% 12% 8% Average number of brands that auto manufacturers compete against. 4% 5% 8% 6% APRIL 7% 9% RCH MA MA Y NE JU 6 11% 12% DEC // ASSOCIATION OF NATIONAL ADVERTISERS d 015 in 2 h t n mo PT y b SE EXPAND TELEVISION S REACH TO INCLUDE DIGITAL AUDIENCES FE 12 Cross-device marketing, when executed properly, allows unprecedented access to individual consumers via personal or shared household devices. Data science and marketing technology facilitate marketers ability to link unique consumer IDs across multiple devices and form a more complete view of an individual consumer in the process. Data-driven cross-device marketers gain exclusive access to a slew of advantageous marketing enhancements, including consistent messaging across all devices, full control over frequency of message, amplified reach, enhanced insight into the channels that JAN In 2015, the U.S. automotive industry raked in $280 billion in revenue during a recordbreaking year. Leveraging data to objectively analyze marketing effectiveness has become key to accelerating sales in today s competitive marketplace. The insights noted here, derived from DataXu s marketing analytics platform and recent industry research, highlight just some of the opportunities data provides to inform future auto marketing strategy. P.O. GO ALL-IN ON CROSS-DEVICE influence specific consumer actions, and personalized messaging. Top marketers will use their newly enhanced visibility into the consumer journey, and what they ve learned from initial campaigns, to influence future marketing allocations. V NO An Insightful Look Inside America s Auto Advertising Industry then structuring campaigns around data to deliver more of those actions, marketers should soon experience increased sales outcomes and higher ROI. (See infographic An Insightful Look Inside America s Auto Advertising Industry, below.) B click-through rates, don t always translate into big wins. When marketers take a closer look at the audience behind those clicks, they re usually in for a disappointment. Clicks do not equal conversions, and the consumers clicking on ads are often not the ones actually buying a brand s products. Savvy marketers instead focus on the data behind higher-engagement metrics to target valuable prospects and drive increased business results in the process. Total number of pages viewed during a web session, total time spent on a webpage, and coupon downloads are all high-value data points that tie back to high-value prospective customers. To maximize sales and conversions, marketers should target audiences that are similar to the consumers who completed high-value actions. By refining goals to focus on metrics like time spent on page or (for auto advertisers) completed car configurations, and DECEMBER Month in which auto advertisers invest the highest percentage of their annual digital ad budget.
5 SPECIAL SECTION viewers. But in 2016, it is possible to take television one step further by using digital data to identify households that contain individuals of interest and then target that subset of viewers via addressable TV. Cord-cutter and cord-never audiences who were previously unreachable through television are back in the game thanks to today s smart TV targeting. Data-driven, highly specific targeting reduces the waste intrinsic to traditional TV advertising and helps drive increased marketing ROI. MINIMIZE LOSSES AND MAXIMIZE WINS IN REAL TIME Being able to measure and adjust marketing investments in real time effectively reallocating portions of a budget between channels while keeping the overall budget unchanged translates into a significant incremental sales lift across the entire marketing plan for respected brands such as Lexus. (See the case study Data Science Drives ROI Increase for Lexus, on page 11.) Through the use of marketing analytics software that designs and runs experiments at scale, such advertisers have finally unlocked marketing s best investment. These brands have been able to identify opportunities for increased sales conversions; map out the perfect marketing mix designed for maximum efficiency, smallest conceivable levels of waste, and the greatest return on marketing investments possible from the existing budget; and answer marketing s fundamental question: What is the expected sales lift from X dollars of incremental investment in X channel, campaign, or region? By investing in data, today s top marketers have struck gold. When fully implemented through technology, data science and marketing analytics allow marketers to assess the risk and returns of marketing plan investments without the weight of historical precedents or guesswork to hold them back. It s no wonder the brands that let data lead have outpaced Wall Street s S&P 500 and Nasdaq indexes. It seems that in the end, data science and marketing analytics are both big bets that pay off. Gar Smyth is the vice president of marketing, Merrily McGugan is the director of corporate marketing, and Priti Ohri is the director of global solutions, all at DataXu. them at gsmyth@dataxu.com, mmcgugan@dataxu.com, and pohri@dataxu.com. 20 Average number of digital touches prior to an automotive conversion. 7:00 P.M. TO 12:00 A.M. Segment of day with highest automotive ad conversion rates. Day of week that shoppers are most likely to engage with digital auto ads. 3 4 Average number of digital screens utilized by auto advertisers to reach cross-device consumers. 47% Average amount of 2015 digital ad budgets allocated to mobile. 50% Overall U.S. auto advertising spend accounted for by three auto advertisers M T W T F S S Day of week that shoppers are least likely to engage with digital auto ads. 13% % Amount of U.S. advertising spend owned by automotive industry. source: AdAge source: AdAge ANA.NET // 13
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