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Online Demand Generation: 

Strategy and Metrics
Steve Latham
@stevelatham
Agenda
  What is #^*! Is Demand Generation?
  Components of a demand gen program (roles)

  Search, Display, Email, Social/PR, Landing Pages,
   Analytics
  Planning - Segment, understand user needs and paths,
   define metrics 
  Execution – test. learn quickly, isolate changes 

  Measuring results 

  Calculating ROI

  Top 10 worst / best practices




                  Online Demand Generation – Spur Interactive
   2
Demand Generation Overview
My definition has two parts:
   Creating awareness and demand for your brand
          Direct Response requires brand awareness
      Capitalizing on brand to produce sales
It is NOT:
    Tactical / quick fix

    Silver bullet 


Comprehensive program entails:
   Media (paid and earned)

   Defined user paths and actions 

   Robust measurement 

   Ongoing optimization 
                   Online Demand Generation – Spur Interactive
   3
How Most View Online Media Mix*



         Search             Display                E-Mail               Co-Reg          Social
          Paid +           Rich, Flash,          House &    3rd         Branded /   Networks, Blogs,
          Natural         Video, .Gif Ads        Party email            Unbranded    Photos, Videos



                                                  Leads

                                              Prospects

                                                  Sales
*Was not room to include Affiliate,
 Comparison Shopping Engines,
   Contextual Text Ads, etc. 
                                                    $$$
                                     Online Demand Generation – Spur Interactive
                      4
How We Should View Online Media


                                                    Awareness


                                                       Interest 

                                                 (Consideration /
                                                   Preference)


                                                      Decision


                                                             $$$
              Online Demand Generation – Spur Interactive
          5
Roles of Online Media




             Search        Display               E-Mail                Co-Reg     Social
              CPC       CPM/CPC/CPA             CPM/CPA                  CPA        ???



Stage
       Search
       Display
               Email
               Co-Reg
     Social
Awareness
    Broad       Targeted              3rd party              Targeted   Mentions
              terms
        ads
                 sends
                 offers
Interest
    Narrow      Retargeted             3rd party                ___
      Recʼs
              terms 
       ads
                 sends
Decision
    Branded     Retargeted             Targeted                 ___
     Reviews
              terms
        ads
                 offers


                        Online Demand Generation – Spur Interactive
                          6
Engagement Paths (2 examples)

    Impression     Impression Impression Impression Paid Click Natural Click                  Visit / Action




    Display        Display     E-Mail          Display          Search              Search     Direct Nav
    Vendor #1      Vendor #2   3rd   party     Vendor #3       “Lap Band” “ABC Houston”




Day: 0
                                               30
                                                60

          Paid Click     Paid Click           Impression            Impression           Paid Click /
                                                                                           Action


          Search
      “Weight loss        Search              Display                 E-Mail                 Search
        surgery”         “Lap Band”          Retargeted
                                                                      3rd   party        “ABC Houston”


                                      Online Demand Generation – Spur Interactive
                             7
Planning
                                                            Develop Media Plan
                                                               Define roles / budget




                                           Define Metrics
                                              Segment by stage




               Define Offers and Actions
                  For each audience

                  At each stage




Define + Segment Audiences
   Demographic segments
                                                                         Get buy-in
   Purchase cycle / stages
                                                                         from your
   Their needs at each stage
                                                                            team
                      Online Demand Generation – Spur Interactive
                  8
Execution
                                                                        Ongoing Optimization
                                                                           Paid media 

                                                                           Landing pages


                                 Reporting / Analysis
                                    Media-specific 

                                    Holistic 


          Active Monitoring
             Impressions

             Clicks / Visits

             Actions / Engagement


  Buy / Traffic / Test
    Ads
                                                                               Lather,
    Web pages 
                                                               Rinse,
    Tracking
           Online Demand Generation – Spur Interactive
          Repeat
      9
So… how do you know if itʼs working? 
      What do we measure?
       What does it mean?




          Online Demand Generation – Spur Interactive
   10
Measure that which Indicates Value
Basic Metrics
                     Engagement metrics
    Impressions 
                     % Returning
    Clicks 
                          Frequency of visit

    Visits
                           Pages viewed per visit
    Page views 
                      Time on site 

                                       Registrations 

                                       Transactions


                                   Web 2.0 Metrics
                                      Posts / Participation

                                      Viewing Videos or Photos 

                                      Uploading content 

                                      Sharing / Posting
                     Online Demand Generation – Spur Interactive
   11
Look Beyond the Last Click
    Decision cycles are not linear
        Users often require many touches before taking action

    Credit is often attributed to the last click
        Design flaw of most analytics platforms

      Case Studies:
      • FedEx Kinkoʼs: 20% of “search” leads had display cookies
         •  After adjusting, reduced display CPL by 50%
      • Regional health care provider: 50% of leads required 5.5
        touches before taking action
      • Beauty product: average purchase took place after 3rd visit


    Takeaway: understand which touch points drive action
        engagement mapping, clickpath analysis, i-mapping
                         Online Demand Generation – Spur Interactive
   12
Donʼt Forget the Wingman
 While SEM usually gets the
  credit for scoring…
 
…there is usually an assist
      Display ads
      General search terms 
      Television
    Attribute credit where it is due
      …to the Wingman!
    Display should be viewed as a
     supporting medium
        Creates awareness and
         demand for your brand
        Drives better ROI from search
                         Online Demand Generation – Spur Interactive
   13
Take a Holistic View
Some results are directly traceable… but many are not!
  Due to cookie deletion and multiple machines

      Case Studies:
      •  B2C retailer: 30% increase in home page traffic when display
         campaign launched (beyond paid clicks)
      •  Bank: 4 “home page” actions for every traceable 1 action


  Create a baseline 

   for comparison
  Be mindful of the

   seasonal impact 
  Agree upfront how to 

   attribute credit
                      Online Demand Generation – Spur Interactive
     14
A New Way To Index Performance
            12
Month
Google
Search
Index:
WIDGET

  3

                                                                  Understand the Context of your
2.5

                                                                  environment – use Google Trends
  2
                                                              as a proxy for Demand.
1.5


  1

                                                
1.40


0.5


                                                
1.20


  0


                                                
1.00




                                                
0.80




                                                
0.60


       Show your RELATIVE
       performance by indexing your             
0.40


                                                                                 "Google
Trends
‐
30
Day
Index"


       results vs. Google Trends
                                                "Online
Leads
‐
30
Day
Index"

                                                
0.20




                                                  
‐




                                                       Jan
3
2009
    Jan
10
2009

                                     Online Demand Generation – Spur Interactive
     Jan
17
2009
    Jan
24
2009
   Jan
31
2009

                                                                                                                                15
Communicate in a Way that Works



Daily and Cumulative LeadsCommunicate
                      Information, not data


                         Executives LOVE
  Campaign Summary         Dashboards!
                            # Leads by Outlet                               Cost per Lead by Outlet




                             Online Demand Generation – Spur Interactive
                             16
ROI 101 (warmup slide)
Campaign assumptions: 
              Investment
                                                         $10,000
              Impressions ($5 cpm)
                                             2,000,000
              Visits (direct and indirect)
                                        10,000
              Registration (lead) rate
                                               3%
              Lead Close rate
                                                       10%
              Revenue per customer
                                                $2,500
       Expected Results:
                                      Another way to view it:
       •  300 leads
                                           •  Value per visit: $7.50
       •  30 customers
                                        •  Cost per visit: $1.00
       •  $75k in revenue
       •  $7.50 ROAS*
 *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits
 that did not register is of equal if not greater value. 
                                 Online Demand Generation – Spur Interactive
                    17
How Do We Value Engagement? 
Determine how Actions  Intent (retailer example) 
      Action
                   Value
      Visits
                   Indicates awareness
      Registrations
            Indicates consideration
      Store lookups
            Indicates preference
      Coupon Downloads
         Indicates action
      Tell A Friend
            Indicates loyalty 

Forecast how Intent  $$$
   Some % of those who show Intent will buy

   Do the math and apply across each set of actions

   Use common sense to normalize results

                  Online Demand Generation – Spur Interactive
   18
ROI Methodology


                                               Project Value                  Normalize          Divide by
   Define             Assign Close
                                                 for each                     (average)           Cost or
   Metrics 
            Rates
                                                  action
                       Values 
        investment


Such as:
            Forecast:
             Project:
                     Strengthen by:
     Net it out:

•  Visits
           •  What % will         •  Revenue,                   •  Eliminate        •  Return on
                        purchase?
             Margin, NPV
                  outliers 
          Spend
•  Registrants
                     •  Based on            •  Based on action
           •  Separate by      •  Return on
•  Friend invites
      actions
                                             audience
           Investment
                                            •  Based on                       •  Customers
                     •  Based on               audience
                      •  Prospects
   •  Based on
•  Coupon D/Ls
                        audiences
              •  Customers
                                    audience
                       •  Customers
            •  Prospects
                                   •  Customers
•  Store lookups
      •  Prospects
                                                            •  Prospects
                                     Online Demand Generation – Spur Interactive
                            19
Online / Offline Purchase Funnel / ROI
                         Awareness 

                          (Visits)
                    Consideration 

                (Product Page Views)
                        Preference 

                       (Add to Cart)
                           Action
                         (Purchase)




               Online Demand Generation – Spur Interactive
   20
Offline Purchase Funnel / ROI

                          Awareness 

                           (Visits)

                       Consideration

                      (Product views, 

                       long visit, etc.)

                          Preference

                          (Register)




               Online Demand Generation – Spur Interactive
   21
Case Study
Client: Stage Stores 

Audiences: female teens
in underserved markets
                             Blog
Objective: drive in-store
purchases

Strategy: back-to-school
social networking site

                 Comments
                     Online Demand Generation – Spur Interactive
   22
Supporting Calculations




 *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700
 visits that did not register is of Online Demand greater value. Interactive
                                    equal if not Generation – Spur 
                      23
Top 10 Worst and Best Practices

Worst Practices
                              Best Practices
Make big bets before testing
                 Test, test, test… then invest
One-off tests
                                Strategic planning 
Overly-Ambitious Expectations
                Under-promise, Over-deliver
Measuring each buy based on                   Attributing credit for assists, not
directly attributable results 
               just scores
Silo-based approach to assessing              Holistic view: understand role of
performance
                                  each media channel. 
In-house call center (phone leads)
 Outsource call center operations
Expecting perpetual success
                  Understanding diminishing returns 
Chasing shiny new objects
                    Business case before investing
Insourcing specialized roles
                 Hire experts
Hording information 
                         Sharing information with agency
                        Online Demand Generation – Spur Interactive
                24
In Closing…
When managed properly, nothing beats Online for demand
 generation
Success requires… 
    Strategic approach to planning 

    Creativity

    Common sense

    Willingness to fail (as long as you learn!)


Letʼs stay in touch!
    Check out our blog http://blog.spurinteractive.com 

    Follow me on Twitter www.twitter.com/stevelatham 

    Find me on Facebook and LinkedIn.


                      Online Demand Generation – Spur Interactive
   25
About the Presenter
Steve Latham is the founder and CEO of Spur Interactive, a
 strategic interactive marketing agency. In this role, Steve
 has planned and managed successful campaigns for
 leading brands, including ConocoPhillips, FedEx Kinko's,
 Southwest Airlines and The Scooter Store, to name a few.

Steve is an accomplished industry lecturer and an active
 member of the business and non-profit community. Steveʼs
 articles on interactive strategies have been published by
 MediaPost, iMedia Connection and Marketing News. He has
 been quoted in PR Week, Fortune and CNN.com.

Steve received an MBA from Harvard Business School and a
 BBA from the University of Oklahoma. You can find Steve
 on Facebook and on Twitter (stevelatham)




                              Online Demand Generation – Spur Interactive
   26

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Online Demand Generation - Spur Interactive 2009

  • 1. Online Demand Generation: 
 Strategy and Metrics Steve Latham @stevelatham
  • 2. Agenda   What is #^*! Is Demand Generation?   Components of a demand gen program (roles)   Search, Display, Email, Social/PR, Landing Pages, Analytics   Planning - Segment, understand user needs and paths, define metrics   Execution – test. learn quickly, isolate changes   Measuring results   Calculating ROI   Top 10 worst / best practices Online Demand Generation – Spur Interactive 2
  • 3. Demand Generation Overview My definition has two parts:   Creating awareness and demand for your brand   Direct Response requires brand awareness   Capitalizing on brand to produce sales It is NOT:   Tactical / quick fix   Silver bullet Comprehensive program entails:   Media (paid and earned)   Defined user paths and actions   Robust measurement   Ongoing optimization Online Demand Generation – Spur Interactive 3
  • 4. How Most View Online Media Mix* Search Display E-Mail Co-Reg Social Paid + Rich, Flash, House & 3rd Branded / Networks, Blogs, Natural Video, .Gif Ads Party email Unbranded Photos, Videos Leads Prospects Sales *Was not room to include Affiliate, Comparison Shopping Engines, Contextual Text Ads, etc. $$$ Online Demand Generation – Spur Interactive 4
  • 5. How We Should View Online Media Awareness Interest 
 (Consideration / Preference) Decision $$$ Online Demand Generation – Spur Interactive 5
  • 6. Roles of Online Media Search Display E-Mail Co-Reg Social CPC CPM/CPC/CPA CPM/CPA CPA ??? Stage Search Display Email Co-Reg Social Awareness Broad Targeted 3rd party Targeted Mentions terms ads sends offers Interest Narrow Retargeted 3rd party ___ Recʼs terms ads sends Decision Branded Retargeted Targeted ___ Reviews terms ads offers Online Demand Generation – Spur Interactive 6
  • 7. Engagement Paths (2 examples) Impression Impression Impression Impression Paid Click Natural Click Visit / Action Display Display E-Mail Display Search Search Direct Nav Vendor #1 Vendor #2 3rd party Vendor #3 “Lap Band” “ABC Houston” Day: 0 30 60 Paid Click Paid Click Impression Impression Paid Click / Action Search “Weight loss Search Display E-Mail Search surgery” “Lap Band” Retargeted 3rd party “ABC Houston” Online Demand Generation – Spur Interactive 7
  • 8. Planning Develop Media Plan   Define roles / budget Define Metrics   Segment by stage Define Offers and Actions   For each audience   At each stage Define + Segment Audiences   Demographic segments Get buy-in   Purchase cycle / stages from your   Their needs at each stage team Online Demand Generation – Spur Interactive 8
  • 9. Execution Ongoing Optimization   Paid media   Landing pages Reporting / Analysis   Media-specific   Holistic Active Monitoring   Impressions   Clicks / Visits   Actions / Engagement Buy / Traffic / Test   Ads Lather,   Web pages Rinse,   Tracking Online Demand Generation – Spur Interactive Repeat 9
  • 10. So… how do you know if itʼs working? What do we measure? What does it mean? Online Demand Generation – Spur Interactive 10
  • 11. Measure that which Indicates Value Basic Metrics Engagement metrics   Impressions   % Returning   Clicks   Frequency of visit   Visits   Pages viewed per visit   Page views   Time on site   Registrations   Transactions Web 2.0 Metrics   Posts / Participation   Viewing Videos or Photos   Uploading content   Sharing / Posting Online Demand Generation – Spur Interactive 11
  • 12. Look Beyond the Last Click   Decision cycles are not linear   Users often require many touches before taking action   Credit is often attributed to the last click   Design flaw of most analytics platforms Case Studies: • FedEx Kinkoʼs: 20% of “search” leads had display cookies •  After adjusting, reduced display CPL by 50% • Regional health care provider: 50% of leads required 5.5 touches before taking action • Beauty product: average purchase took place after 3rd visit   Takeaway: understand which touch points drive action   engagement mapping, clickpath analysis, i-mapping Online Demand Generation – Spur Interactive 12
  • 13. Donʼt Forget the Wingman  While SEM usually gets the credit for scoring… …there is usually an assist   Display ads   General search terms   Television   Attribute credit where it is due …to the Wingman!   Display should be viewed as a supporting medium   Creates awareness and demand for your brand   Drives better ROI from search Online Demand Generation – Spur Interactive 13
  • 14. Take a Holistic View Some results are directly traceable… but many are not!   Due to cookie deletion and multiple machines Case Studies: •  B2C retailer: 30% increase in home page traffic when display campaign launched (beyond paid clicks) •  Bank: 4 “home page” actions for every traceable 1 action   Create a baseline 
 for comparison   Be mindful of the
 seasonal impact   Agree upfront how to 
 attribute credit Online Demand Generation – Spur Interactive 14
  • 15. A New Way To Index Performance 12
Month
Google
Search
Index:
WIDGET
 3
 Understand the Context of your 2.5
 environment – use Google Trends 2
 as a proxy for Demand. 1.5
 1
 
1.40

 0.5
 
1.20

 0
 
1.00

 
0.80

 
0.60

 Show your RELATIVE performance by indexing your 
0.40

 "Google
Trends
‐
30
Day
Index"
 results vs. Google Trends "Online
Leads
‐
30
Day
Index"
 
0.20

 
‐



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3
2009
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10
2009
 Online Demand Generation – Spur Interactive Jan
17
2009
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2009
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2009
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  • 16. Communicate in a Way that Works Daily and Cumulative LeadsCommunicate Information, not data Executives LOVE Campaign Summary Dashboards! # Leads by Outlet Cost per Lead by Outlet Online Demand Generation – Spur Interactive 16
  • 17. ROI 101 (warmup slide) Campaign assumptions: Investment $10,000 Impressions ($5 cpm) 2,000,000 Visits (direct and indirect) 10,000 Registration (lead) rate 3% Lead Close rate 10% Revenue per customer $2,500 Expected Results: Another way to view it: •  300 leads •  Value per visit: $7.50 •  30 customers •  Cost per visit: $1.00 •  $75k in revenue •  $7.50 ROAS* *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits that did not register is of equal if not greater value. Online Demand Generation – Spur Interactive 17
  • 18. How Do We Value Engagement? Determine how Actions  Intent (retailer example) Action Value Visits Indicates awareness Registrations Indicates consideration Store lookups Indicates preference Coupon Downloads Indicates action Tell A Friend Indicates loyalty Forecast how Intent  $$$  Some % of those who show Intent will buy  Do the math and apply across each set of actions  Use common sense to normalize results Online Demand Generation – Spur Interactive 18
  • 19. ROI Methodology Project Value Normalize Divide by Define Assign Close for each (average) Cost or Metrics Rates action Values investment Such as: Forecast: Project: Strengthen by: Net it out: •  Visits •  What % will •  Revenue, •  Eliminate •  Return on purchase? Margin, NPV outliers Spend •  Registrants •  Based on •  Based on action •  Separate by •  Return on •  Friend invites actions audience Investment •  Based on •  Customers •  Based on audience •  Prospects •  Based on •  Coupon D/Ls audiences •  Customers audience •  Customers •  Prospects •  Customers •  Store lookups •  Prospects •  Prospects Online Demand Generation – Spur Interactive 19
  • 20. Online / Offline Purchase Funnel / ROI Awareness 
 (Visits) Consideration 
 (Product Page Views) Preference 
 (Add to Cart) Action (Purchase) Online Demand Generation – Spur Interactive 20
  • 21. Offline Purchase Funnel / ROI Awareness 
 (Visits) Consideration
 (Product views, 
 long visit, etc.) Preference
 (Register) Online Demand Generation – Spur Interactive 21
  • 22. Case Study Client: Stage Stores Audiences: female teens in underserved markets Blog Objective: drive in-store purchases Strategy: back-to-school social networking site Comments Online Demand Generation – Spur Interactive 22
  • 23. Supporting Calculations *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits that did not register is of Online Demand greater value. Interactive equal if not Generation – Spur 23
  • 24. Top 10 Worst and Best Practices Worst Practices Best Practices Make big bets before testing Test, test, test… then invest One-off tests Strategic planning Overly-Ambitious Expectations Under-promise, Over-deliver Measuring each buy based on Attributing credit for assists, not directly attributable results just scores Silo-based approach to assessing Holistic view: understand role of performance each media channel. In-house call center (phone leads) Outsource call center operations Expecting perpetual success Understanding diminishing returns Chasing shiny new objects Business case before investing Insourcing specialized roles Hire experts Hording information Sharing information with agency Online Demand Generation – Spur Interactive 24
  • 25. In Closing… When managed properly, nothing beats Online for demand generation Success requires…   Strategic approach to planning   Creativity   Common sense   Willingness to fail (as long as you learn!) Letʼs stay in touch!   Check out our blog http://blog.spurinteractive.com   Follow me on Twitter www.twitter.com/stevelatham   Find me on Facebook and LinkedIn. Online Demand Generation – Spur Interactive 25
  • 26. About the Presenter Steve Latham is the founder and CEO of Spur Interactive, a strategic interactive marketing agency. In this role, Steve has planned and managed successful campaigns for leading brands, including ConocoPhillips, FedEx Kinko's, Southwest Airlines and The Scooter Store, to name a few. Steve is an accomplished industry lecturer and an active member of the business and non-profit community. Steveʼs articles on interactive strategies have been published by MediaPost, iMedia Connection and Marketing News. He has been quoted in PR Week, Fortune and CNN.com. Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma. You can find Steve on Facebook and on Twitter (stevelatham) Online Demand Generation – Spur Interactive 26