Posts Tagged ‘Teqtonic’

December 28th, 2010

2011 marketing predictions: The death of mass marketing has been greatly exaggerated

No doubt there will be many a New Year marketing prediction over the next few days.  The most common theme is likely to be that mass marketing will decline and be replaced by new and emerging channels and techniques. This year, I’m not going to make any such prediction. This year I’m standing in defence of mass marketing and mass media. I predict that mass marketing as a concept will be as strong this time next year as it is now.  I predict that marketing’s big beasts, the jumbo jets, supertankers and super-trucks of marketing otherwise known as TV, print and outdoor will not die in 2011 nor any time soon.  This year I’m flying the flag for the future of traditional mass marketing and the media channels that enable it.  Why? Because I think mass marketing has been tied down by too many critics for too long. Here then is my defence of mass marketing:

  1. Critics of mass marketing argue that it can’t work because it’s so “expensive”. This has to be a flawed argument. How can something not work simply because it is expensive? Things don’t fail because they’re expensive.  In fact, things that are expensive are, in my experience, likely to be of better quality and deliver a better experience. Yes, mass marketing is expensive from a capital perspective, but that’s because it delivers mass audiences - usually millions of consumers several times over in a campaign - at a very low unit cost. In other words, mass marketing delivers mass value. Here’s an example: If you are buying TV audience at £5 per thousand reaching 20m viewers five times then yes, it is going to cost £500,000  - but you will have delivered your message to a huge chunk of the UK population in a medium that builds brand credibility like no other.  The issue is not simply the overall cost of the activity, but whether or not the activity is delivering the brand or sales shifts required.  Unfortunately, not many of mass marketing’s critics understand how this type of value works. How many of these critics have examined the cost structures of mass marketing channels like TV and print?  How many of them know that it costs a tiny fraction of 1p to reach a consumer for 30 seconds on TV? How many of them realise that TV can be less expensive on a unit of audience basis than many online display, search or affiliate channels?
  2. Critics of mass marketing argue that it can’t work because it is “wasteful”. “It’s not targeted” the critics complain, “it reaches people who are not in your target audience” or “you are buying wastage”. But do they realise that the whole point of mass marketing is to sell products that large segments of the population want to buy? Food, drinks, home appliances, cars, computers, toys, mobile phones, holidays, credit cards, bank accounts, mortgages, furniture and so on. Mass marketing isn’t wasteful when used with products that almost everyone might want to buy in the near future.
  3. Some critics of mass marketing argue that it simply “doesn’t work”. But how many of these critics have pored over the results of the many tests, research projects, case studies and evaluation papers designed to quantify the sales effect of mass media? How many have studied the works of marketing academics and thought-leaders like Simon Broadbent, John Phillip Jones, Byron Sharp, Erwin Ephron, Giep Franzen or Colin MacDonald? How many of them understand the relationship between a £500k TV adspend and a 10% category share gain? Here’s an example. If a brand has a 10% share of a £200m category its share is worth £20m. If a mass media campaign costing £500k helps the brand increase share by 10% from £20m to £22m, then the adpsend of £500k has secured £2m in sales.
  4. Of course if points 1-3 fail to help you win the argument, you might want to ask one of mass marketing’s critics which brands they consume in different categories. Do they drink an unknown brand of soft drink, use an unknown make of PC, contract with a mobile phone network no-one has ever heard of or fly on that airline whose name no-one can remember?  No, they drink Coca-Cola, they use Apple, Dell or IBM, they make phone calls through O2, Orange and Vodafone and they fly BA, BMI, EasyJet or Virgin.  If these critics use a well known brand at least some of the time then somewhere along the way, mass marketing has done its job.
  5. If point 4 doesn’t work, you could invite a critic of mass marketing to tell Simon Cowell that TV and newspapers aren’t effective communication vehicles and see what he says. You might need to stand well back.

And finally, earlier this month the Advertising Association/Warc reported that UK advertising enjoyed its best year since 2004.  “In Q3 TV, out of home and internet were the top performers posting growth of 15.8%, 12.4% and 11% respectively. Direct mail posted a 7% rise, its first growth since Q1 2006″.Although the base was low in 2009 and the future remains “clouded by economic factors”, UK advertising expenditure is expected to increase by 2.3% in 2011.

Not quite dead yet then…. Here’s to a successful year for the big beasts of marketing in 2011.

June 29th, 2010

DRTV Campaign analysis using spot matching

If you are running a DRTV campaign it’s important to measure and analyse campaign performance in detail. Information gleaned from DRTV campaign analysis can inform subsequent DRTV campaign planning and performance.  The main thrust of analysis work in DRTV is to measure the variables that can be realistically controlled in media planning and buying. Typically, these are the following criteria:

  1. Day of Week
  2. Time of Day
  3. Channel
  4. Programme type
  5. Time length of ad
  6. Position in break
  7. Position in programme
  8. Diminishing returns (audience size)

How does DRTV Spot Matching work?

The established way to undertake these analyses is to use a technique called “spot matching”.   In simple terms, spot matching involves matching two files with each other. The first file is the DRTV spot schedule which contains spot transmission times, programme, channels, audience size and timelength. The second file is the response file which contains information about inbound response, the time of calls, and often the outcome of those calls e.g. whether it resulted in an action with value (i.e. became a qualified lead) or the call failed (i.e. caller not interested, hoax, timewaster etc).

How are the response files matched and reported?

The files are matched using a response curve.  It is generally accepted, from numerous research studies, that around 75% of DRTV calls occur within 15 minutes of spot transmission, and around 50-60%% occur within around 7-8 minutes.   By overlaying the response curve across every spot, it is possible to allocate calls to spots throughout the whole DRTV transmission schedule. When call volumes have been “attached” to each spot transmission, it is then possible to establish the call response rates for each spot.   This then enables reporting by time of day, day of week, channel, timelength etc.

Establishing Financial ROI

By multiplying spot audience volumes by the cost per thousand (CPT) rate at which the DRTV audience was bought,  we can establish the cost of each spot. Because we know the call volumes attached to each spot we are able to report cost per call by spot.  If the advertiser has a notional value that they can attach to a call with a positive outcome then it is possible to establish ROI based on the cost of call from each channel, time band, day of week, programme genre etc in order to report a ROI based on prospect value.

For more information on our analytics services visit www.teqtonic.com

October 2nd, 2009

Building an effective search engine marketing strategy

Just had to set out all the elements of an effective paid search strategy for a client. Thought it might be worth setting out some of the important areas to consider if you are to develop an effective paid search strategy. It’s not exhaustive, but it is helpful if you need a quick check list of things to cover.

  1. Platform Selection – determining which of the search platforms to use. The main options are Google, MSN/Bing and Yahoo! Bear in mind that in the UK Google’s share of the search market is around 90% (Hitwise Sept 09). This raises issues about work loads versus potential returns. In my view, sadly, alternatives to Google are below critical mass now.
  2. Network Deployment – do you run across the site’s extended network/content partners? This means your ads appear on other sites apart from the search engine you are using to create the campaign. This can be good or bad  - it depends on the ROI both options deliver to the campaign you are planning.
  3. Campaign and Ad Group Structure - Organise your keywords into Campaigns and Ad Groups for optimal targeting efficiency. Remember that budgets can only be set at campaign level so if you want to allocate specific budgets across groups of target keywords you will have to set up individual campaigns for each set.
  4. Keyword Selection – Select the keywords your target audience are searching. Remember that generic terms are likely to produce more traffic and fewer purchase conversions than highly targeted lower volume keywords. Given that you are likely to be paying for clicks, you need low levels of clicks and a high conversion rate.
  5. Negative keywords – if you’re selling ‘flat pack furniture’ you don’t want to be selling ‘flats’ or ‘puncture repairs’! Negative keyword settings allow you to eliminate these problems.
  6. Keyword matching – Search engines will return your ad against phrases that contain your target keyword terms. But because the words in a phrase can be rearranged to mean something else, poorly targeted keyword phrases may deliver searchers who are looking something different to what you are selling. You can solve this problem by using Phrase match or Exact match keyword targeting.
  7. Bid Tactics - Your keyword bid will determine how high you appear in the search engine’s listings. But remember that the #1 position does not always provide the best ROI. Lower positions can have a much higher cost efficiency. You will need to set up tests to monitor this and refine it as your campaign gathers sales data. Remeber you pay for clicks but only conversions will build your business.
  8. Day / Day parts - Your target audience may be more or less active on certain days or at certain times of day. Setting up the days and times of day that you want your ads to run allows you to target prospects when they are most active or most likely to convert to a sale.
  9. Budget Setting – You can manage budget deployment by setting your daily / monthly budgets at the campaign Campaign level.
  10. Budget delivery – Search engines will “spend” your money in two ways, either 1) as the searches are pulled through by consumers or 2) spread evenly throughout the day. The problem with route 1 is that you can be out of budget by lunchtime. You can set the way your budget delivered across day.
  11. Ad Text Copy Writing – Preparing copy to fit the confines of the ad text box and reflect your keyword selection is a vital component of search marketing. You have a fixed number of characters across each of the three lines including the headline. It pays in terms of ranking and response to match the ad text as closely as possible to the keywords you are targeting. Relevance is key.
  12. Linking / Deep Linking - Linking ads to the relevant web site page(s) and/or landing page(s) can take your prospect directly from their search, through your ad and to the page containing the product information they’re seeking. That makes for better conversion rates.
  13. Analytics tracking – setting up Google Analytics to track your campaign in detail will allow you to generate in-depth insight about where your visitors come from, how they enter your site, what they do on it, and the pages they leave from. But perhaps best of all, once you’ve gathered enough data Analytics will allow you to start optimising your campaign parameters around sales rather than clicks.
September 21st, 2009

Welcome to Teqtonic

Teqtonic is a direct-digital communications planning consultancy that helps clients and partners to achieve three things: 1) Win new customers 2) Grow sales and 3) Build brands. In other words, we’re into high performance communications planning. Here’s a bit more about us:

We tend to work with clients and partner agencies who have a digital direct marketing agenda and a strong ROI focus.

We believe that the communications landscape is getting so complex that traditional DR optimisation in itself is no longer sufficient to solve direct marketing problems; agencies have to find new communication ideas that cut through and deliver the right ROI simultaneously.

The definitions of ROI have to be reworked. The internet is bringing new measures of advertising effectiveness and we need to understand all the possibilities that these new measures bring to campaign evaluation and control.

We are particularly interested in understanding and optimising the relationship between online and offline media.

The new age of Search?

All channels have a fixed capacity to deliver results and search marketing feels this as much as any channel. Many advertisers are reaching their full capacity in search, particularly PPC.  Their challenge now is to expand beyond search whilst maintaining as efficient ROI metrics.

Teqtonic can help you optimise search and move beyond it, to use traditional channels as a way of expanding your search traffic volumes and maintaining a strong overall ROI.

We work across the entire media and communications  spectrum, from TV to SEO. We also handle print, radio and online display, as well as traditional DR media like inserts and direct mail.

If you’re an advertiser or a creative agency who recognises these issues visit www.teqtonic.com to find out more.

June 12th, 2009

Measuring web sales from offline advertising like TV, press and radio

If you are running press, radio, TV or DM activity to drive traffic to your web site and generate online sales, you may be wondering how to measure the relationship between offline media and online sales. This short piece will give you a simple guide to analysing whether your offline advertising is delivering web sales.

It’s worth stating at the outset that the job of relating offline media to online response is a complex area. Media channels like TV, press and radio don’t carry cookies so the tracking options available within the online sales funnel are simply not available when you start working with offline media.  Consequently,  we have to use other techniques that can give us an informed view about ROI from offline media in online environments.

The approach I am going to take you through is not 100% watertight, but it is a fraction of the cost of statistical modelling and will give you a reasonable idea of how to explore the efficiency of offline media in driving online sales.

Stage 1 - Visual observation of the data

  1. Obtain web log data running around 1 month prior and 1 month post your offline campaign activity
  2. These web logs should be daily level data showing both total unit sales and total sales value by day
  3. If possible obtain data for sales originated through both search engines and direct browser visits
  4. Enter into an excel spreadsheet
  5. Separate these two sources of data and undertake the following for each of the two sales data sets
  6. Add your daily offline media spend
  7. Chart the direct and search sales alongside the spend data
  8. Look at the data and see if there is any visual pattern in it. See of there are slight rises either during or lagged behind your offline campaign activity
  9. If there are any patterns which suggest an effect between your offline media and online sales proceed to the next stages.

Stage 2 -Sales analysis by day of week

  1. We need to ‘eliminate’ any day of week effect (for example, for many online companies Sunday and Monday are often their best sales days) so sort your data into the seven days of the week for the whole period
  2. You should now have seven mini data sets, one for each day of the week, each containing media spend (where applicable) and sales data.
  3. Calculate the average number of unit sales or sales revenue for each day of the week
  4. Now rank within each mini data set of days by daily unit sales or sales revenue
  5. Compare the sales for each day to the average of that day over the period
  6. If the advertising supported days are all above average, then your offline advertising is likely to be driving these online sales.

Stage 3  - Estimating the value of web sales driven by offline advertising

  1. For each of the days of the week, refer back to the average sales for each day
  2. Now for each of the days with web sales above the average, subtract those sales (or their sales value) from the average figure for the day of the week
  3. This is your incremental sales revenue
  4. Now compare your total incremental sales revenue to your offline advertising spend in the period
  5. You can now estimate sales and gross margin ROI
  6. For revenue ROI, compare the incremental sales value to the ad spend
  7. For gross margin ROI estimate your gross margin a percentage of sales and then compare the margin value to the advertising spend.

You will also need to factor in seasonality. Ideally, you would undertake the same exercise for the same period one year prior to the period you are analysing. If your sales in March are high, it may be the case that March is a good seasonal sales month. You need to account for this eventuality too.

If you’re an advertiser with large volumes of traffic and omnipresent advertising, then of course, things become more comlex. You will need to build a test marketing campaign structure with lots of media variation - i.e. different channels running at different times with different messages. This can then be seasonally adjusted and modelled using multiple regression to estimate the sales effect of each media channel being used.

February 9th, 2007

Marketing in the Digital Age

The Teqtonic blog is about the changing marketing and media landscapes. It’s about how emerging digital communication channels will affect the “old order” of marketing thought.

Over the coming months we’ll discuss the business of marketing through both Internet media channels and traditional media channels. From the web perspective, we’ll look at search, display, email, blogs, mobile and affiliate networks - plus the stuff that’s on the horizon and closing in.

We’ll also look at the traditional media channels that dominated marketers’ thoughts for so long; television, press, radio, loose inserts, door drops and direct mail. As many audiences migrate online - particularly 16-34’s - we’ll examine where traditional channels fit into the media landscape now. We’ll investigate how they’re bearing up and examine the options open to them to ensure their survival.