Disney Breakout. The value of a holistic marketing effectiveness initiative

Transcription

1 Disney Breakout The value of a holistic marketing effectiveness initiative

2 Welcome Nathan Vadeboncoeur Manager, Marketing Analytics and Optimization Disney Parks and Resorts Scott Nuernberger Vice President Quantitative Marketing Group Merkle 2

3 Objective Provide overview of an Disney s multi-year marketing effectiveness initiative Highlight importance of a centralized data store for media and business response data Demonstrate value generated for Disney through quick examples: Marketing performance dashboards Marketing mix models across the sales funnel Robust scenario planning and optimization Relevance to CFO on proving business impact of marketing program 3

4 Business Overview Disney Parks and Resorts One segment of the Disney Company $12B in Revenue Disney Parks and Resorts Marketing Responsible for all marketing Walt Disney World Four Theme Parks (Tickets, Passes) New Fantasyland opened in December Two Water Parks (Tickets, Passes) 25 Resort/Disney Vacation Club (DVC) Properties ~25,000 Rooms Downtown Disney Shopping, dining, night clubs ESPN Wide World of Sports Disneyland Two Theme Parks (Tickets, Passes) California Adventure Expansion (May)/Cars Land opened (June) Three Resorts Disney Cruise Line Four ship fleet Disney Vacation Club Adventures By Disney Aulani, A Disney Resort & Spa, Ko Olina, HI

5 Marketing Effectiveness Initiative Goals Create robust, automated, holistic foundational data store Transform analytics from last click to partial attribution model Analyze performance data, along with associated costs and investments, to measure ROI and determine overall value Use learnings to make wiser decisions on future goals, overall marketing mix, and specific campaigns and tactics Considerations Identify a Common Currency across media Define, categorize and prioritize >200 metrics across all business units to develop meaningful and valuable KPIs Provide granularity of data to allow for measurement at a variety of discipline, tactic and geographic levels Support both analytic efforts and marketing performance reporting/dashboards

6 Foundation is a centralized Marketing Effectiveness Data Store

7 MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns 7 * Note: all data changed to protect confidentiality

8 MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns Wealth of metrics available to select including: Site traffic Report bookings and room nights Social metrics 8 * Note: all data changed to protect confidentiality

9 MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns Also showing awareness and intent metrics from market research 9 * Note: all data changed to protect confidentiality

10 MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns Market level comparative metrics 10 * Note: all data changed to protect confidentiality

11 MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns Map view provides wealth of metrics by market 11 * Note: all data changed to protect confidentiality

12 MEDS Also Feeds Centralized Reporting for all Media Activity Video Detail Overall Media summary page with drill down dashboards for each media Radio Detail TV Detail 14 * Note: all data changed to protect confidentiality Online Detail Print Detail 15 * Note: all data changed to protect confidentiality 12 * Note: all data changed to protect confidentiality

13 Media Summary View Provides One Overview Across All Media 15 * Note: all data changed to protect confidentiality 14 * Note: all data changed to protect confidentiality 13 * Note: all data changed to protect confidentiality

14 TV Detail Dashboard Can Also Drill Down into Dayparts, Networks, Markets 14 * Note: all data changed to protect confidentiality 15 * Note: all data changed to protect confidentiality 5 * Note: all data changed to protect confidentiality 14 * Note: all data changed to protect confidentiality

15 Objective Provide overview of an Disney s multi-year marketing effectiveness initiative Highlight importance of a centralized data store for media and business response data Demonstrate value generated for Disney through quick examples: Marketing performance dashboards Marketing mix models across the sales funnel Robust scenario planning and optimization Relevance to CFO on proving business impact of marketing program 15

16 Analysis Example #1: Funnel Models Although the modeling focus is generally on driving resort bookings, additional models were built to assess the impact of media higher in the funnel This view provider more complete picture of media impact along the sales funnel Contributions by Model Search (Google Trends) TV Display Search (Paid) TV Display Web Visits Vacation Planning Kit TV TV Display Display EM/DM has strong impact in DRC calls as well as net bookings Calls Online Booking Engine 3 TV TV Display Display TV has strong impact in driving on-line shops as does display 0% 20% 40% 60% 80% 100% Base TV Radio Direct (DM/EM) Display Search * Note: all data changed to protect confidentiality 16

17 Analysis Example #2: Optimization Scenarios Optimization scenarios can be run with any budget level and set of constraints. It is this flexibility that makes scenario planning an effective tool to aid decision making To illustrate, twelve optimization scenarios were run: Different overall budget levels (90%, 100%, 110%, and 120%) Different media held fixed Any media not fixed were constrained to only change by plus or minus 30% Results are highlighted in table below. The value in each cell represents the change in expected resort bookings. Detail media spend change for scenario highlighted in red shown to right Total Budget Scenario 90% 100% 110% 120% Nothing fixed 1.8% 10.2% 14.3% 19.7% Intent TV Fixed -2.1% 6.7% 12.3% 17.9% All Intent Media Fixed -3.9% 5.7% 11.8% 17.4% The 6.7% increase was achieved by making these changes to spend by media * Note: all data changed to protect confidentiality Media Change in Spend Display (Conversion) $284,395 Display (Intent) -$356,623 Direct Mail (Conversion) $1,030,278 (Conversion) $297,177 Magazine (Conversion) $213,982 Radio (Conversion) $547,050 Search (Conversion) $1,537,745 Search (Intent) $582,038 TV (Conversion) -$1,292,684 TV (Intent) $0 Grand Total 17 $0

18 Marginal Profit ROI Analysis Example #3: Comparative Analysis Industry comparative view of marginal marketing ROI informs broad decisions on value of marketing as a whole 300% 250% 200% Disney Size of bubble represents size of marketing spend 150% 100% 50% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% -50% -100% Marketing Spend as % of Revenue Industry 1 Industry 2 Industry 3 Industry 4 Industry 5 Marginal Profit ROI = the profit generated with $1 increase in marketing investment over current spend levels (0% is break even). * Note: all data changed to protect confidentiality 18

19 Summary Disney embraced a long term marketing effectiveness initiative which included organizational alignment and focuses on building required infrastructure The broad range of data gathered in a marketing effectiveness database (MEDS) provides a complete picture of marketing activity and effectiveness for all groups within Disney and their partners Always having the data present, validated, and up to date enables quick turnaround of analyses to keep pace with quickly changing marketing landscape 19

20 Thank You! Q&A 20