Marketing is spaghetti of channels, audiences, tactics,. What is the role of each in driving consumption? Copyright Kvantum Inc.

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1 1 Marketing is spaghetti of channels, audiences, tactics,. What is the role of each in driving consumption?

2 2 Known Changes to algorithms in past 2 years that impact ad effectiveness Google 25+, Facebook 20+ Marketing environments change rapidly in response to change in consumer s digital interactions with advertising channels.

3 PORTA- POTTY 3 Sourced from : Pinterest CROSS DEVICE TRACKING MEASUREMENT & TRACKING PROGRAMMATIC ADS And there is a constant evolution & maturation of newer ad environments.

4 4 If I have to put all my money in only ONE marketing channel today, which channel would I choose?

5 5 No single channel can truly address all the permutations of the customer journey, but still if I have to choose a channel today, I would probably choose. Amazon (strictly my opinion!)

6 6 What about 6-12 months back? Would my choice be any different?

7 7 What about 6-12 months back? Would my choice be any different? Google Display Network (again, strictly my opinion!)

8 8 What about 18 months back? Would my choice be any different?

9 9 What about 18 months back? Would my choice be any different? Facebook platform + Instagram + Pinterest maybe

10 10 5 years back?

11 11 5 years back? TV, perhaps?

12 12 The important question is: what about 6 12 months from now?

13 13 We do not know.

14 ROI ( 1 Months Trailing) ROI ( 2 Months Trailing) Campaign Spring Style $1.20 $1.19 TV $1.19 $ Early Fringe $1.10 $0.80 News $2.15 $1.89 GDN Spend: $2MM ROI: $5.20 Target OTR: 85% Prime $3.12 $3.00 GDN $5.20 $6.20 Remarketing 30 days $7.14 $6.14 Apparel & Accessories Outerwear Home & Garden Home Decor $1.95 $1.99 $5.32 $6.82 Facebook Instagram (50:50) $3.10 $3.15 Website visitors retargeting $4.20 $4.25 Fans $1.60 $1.70 Programmatic Display $5.43 $5.43 X-Axis $6.03 $6.03 Acxiom $1.20 $1.20 Programmatic TV $7.60 $7.60 Hulu $10.18 $10.18 Samba $4.30 $4.30 The only way to know channels that work & are emerging is through rapid, granular tracking of Marketing ROI.

15 Rapid Measurement 15 Actionability Granular insight is useful only if it is paired with rapid action

16 16 How does AI enable rapid, granular insight at scale and effective cost?

17 How does AI enable rapid, granular insight at scale and 17 effective cost? 1. Consumer voice through text, image & video content 2. Learn from high dimensional data available 3. Establish situational context & tracking of marketing performance 4. Support rapid test & learn

18 18 Use AI/ML to tap into consumer voice Consumers express their opinions, reactions & perceptions through various digital & social forums. Use of AI/ML algorithms to mine context & sentiment provides a rich source of signals required to understand ongoing brand sentiment. #Convolutional Neural Nets #Deep_Learning_NLP

19 Thousands of variables that reflect media tactics, audience characteristics Harness rich, high dimensional data. 19 The marketing process generates massive amounts of data, but it is mostly very high dimensional and short run time series. AI & ML domains provides high dimensional pattern extraction & causal reasoning techniques that help exploit the information available in such large data sources. Short timeframes (12 24 weeks of data) #High Dimensional Covariance Estimation #Matrix Factorization #Clustering #Decision Trees

20 The navigation, tracking & control of the Mars Rover was done from 54.6 million miles away without a clear view of the rover. Establish situational context & tracking marketing performance. 20 We leverage very similar AI algorithms that establish situational context & tracking of the performance of a marketing channel, without the need to observe and track each consumer. The key role of AI/ML is to be able to adapt to various levels of data availability & data noise to establish actionable outcomes.

21 Feedback from past test & learn activities 21 Dayparts Media Inventory Hypothesis CPM/CPP Ranges Brand Inputs Product & Event Creatives Brand, Media Decisions & Actions Learn from actions undertaken in response to marketing performance

22 22 As an organization how do you connect this with actionability?

23 23 Breadth Depth Versatility Optimization beyond digital within a tactic of measurement utilizing benchmarks and saturation curves Gaining actionable attribution output

24 Direct Stimulus Indirect Stimulus 24 Media Other Tactic Halo Impact of Sister Brand(s) Digital Media Traditional Media Public Relations Shopper Marketing Trade Marketing Consumer Promotions Brand A Brand B Look at the entire marketing landscape not just digital

25 ROI ($) 25 TV Print Display Social Media OLV PR Paid Search Amazon Display Cartwheel FSI DFSI - Vendor A DFSI - Vendor B Year 1 Year 2 Example ROI comparison of broad tactics

26 Desktop Mobile 26 Digital Media Display / Video Social Search Programmatic Amazon Youtube Partner site Facebook Instagram Pinterest Twitter Google Bing Standard banners High impact banners Video banners Native ads Collectio n Carousel Video Image Pin Tweet GDN Shopping Adwords Deep dive into each digital tactic

27 Month 1 Month 2 Month 3 27 Media Other Tactic Print (e.g.) Trade Marketing Consumer Promotions Shopper Marketing Publication A Publication B Display Feature TPR Free Quantity IRC FSI DFSI Cartwheel Ibotta Standard Unit High Impact Unit Context Timing Coupon Value Page Length Vendor Deep dive into other tactics

28 28 Volume Effectiveness Efficiency ROI Mass Customer A, B Grocery Customer P, Q, R, S Club Drug Versatility of Measures By Channel

29 29 Automate data collection Collect/reconcile data real-time Analyze/report attribution real-time Automate real-time feedback into mix execution Opportunities

30 30 Thank You! Harpreet Singh Atif Syed