1. Measuring and Managing ROI
WFA/ISA Global Advertiser Conference
Mar

2. Agenda Why worry? The 5 keys to effective marketing management
People
Objectives
Measurement
Optimization
Monitoring
What’s in it for me?

3. The first signs of a slowdown?

4. Marketing is under the microscope
Budgets are shrinking
CEOs are demanding ROI

5. Or as the finance department says:
Why am I spending this money?
Can I do it with less?
What does it actually do to my business?

6. Marketing effectiveness can double the improvement in ROI
+ 30%
Strategic Resource Allocation
Marketing
Effectiveness
Marketing Driver Optimization
Campaign Effectiveness Mgt
Marketing Return on Investment
Media Buying Costs
Marketing
Efficiency
Marketing Materials
Marketing Services Mgt
- 15%

7. Increased focus on short-term sales drivers
Source: Donnelly Marketing; Accenture; Zipatoni, via Promo; IBM Strategy & Change analysis

8. The evolving landscape offers major challenges and opportunities
Opportunites
Ever increasing pace of decision making required
Increased consumer power and avoidance
Difficulties in managing a vast volume of data
Balancing short-term responses with longer term value creation
Relentless pressure for accountability and quarterly profit generation
Improved technology allows course correction faster than ever
Ability to target audiences of one, with relevant messages
Data mining and analytics improved over the last decade
Web 2.0 allows marketers to create a dialogue with consumers
Digital marketing opportunities allow new remuneration models and increased accountability

9. Marketers require marketing effectiveness frameworks that deliver
Speed of insight: Leverage technology to enable faster reaction to competitive/underperforming activities
360 view of business: Alignment around objectives, consolidate all data to ensure programs are coherent
Ongoing RoI capability: From ‘piecemeal’ analytics to cost effective monitoring of MROI
Actionability: Make analytics relevant by putting them in the hands of decision makers

10. The 5 keys to marketing effectiveness
People
Senior support from CEO/CFO
Objectives
Identify incremental and brand building efforts through multiple KPIs
Measurement
Quantify business drivers in financial terms
Optimization
Invest behind highest performing initiatives
Monitoring
Track and course correct on an ongoing basis

11. High level overview Data Integration Web Platform RoI Measurement
Client Internal
Sales
Financials
CRM / Promos
Client External
Retail Audit
Brand tracking
Agency
Flowcharts
Competitive spending
Consumer insights
Creative
Creative content
Environment
Seasonality
Macro trends
Benchmarks
Spending
Ratios
Effectiveness
RoI Measurement

12. Measurement example: Healthcare India
Business Context
Temperature
Pricing / Promotions
Consumer Promotions
Trade Promotions
Marketing
TV Advertising
Print Advertising
Radio
Internet
Celebrity Endorsement
Competitors
Distribution
Pricing
Marketing

13. Urban communities are more responsive to marketing but rural produces greater ROI
4.2
3.1
0.9
1.1
1.3
1.4
1.2
2.3
3.6
0.2
3.8

14. Reallocating communications spend improved profit by 18%
TV w/ endorsement
Print (Urban)
Promo (Rural)
TV : No endorsement
Radio (Rural)
Short-term incremental sales
Promo (Urban)
Print (Rural)
Internet (Urban)
Long-term brand building

15. Monitoring: Marketing Console
Shield the complexity of measurement:
Monitor business performance: Track performance against all objectives and KPIs in real time
Evaluate Marketing effectiveness: Understand business drivers, their importance and profitability in the short and long term
Optimize spending allocation: Simulate, and optimize the business outcome of alternative spending scenarios

17. What is in it for you?
Having the right process and tools in place will connect the CEO/CFO and CMO
Measurement is complex but allows you to understand the financial outcomes of decisions
Bringing this together in a marketing console allows you to balance both short-term sales drivers and longer-term brand building initiatives
Track ROI on an ongoing basis to adjust and course correct