A practical way of looking at ROI. Presented

1. R.O.I.
Sergio Barrientos
SVP, MANAGING CREATIVE DIRECTOR
sergio.barrientos@havasmedia.com
@xensei

2. Agenda
1. Theory
2. Reality
3. Connecting the dots
4. True value
5. Outcome

3. 1. Theory
R.O.I. is…
…a business metric, not a media metric.
…100% media agnostic

4.
How
to
measure
ROI?

5. 1. Theory
Gathering
a
lot
of
data…

6. 1. Theory
…but
focusing
on
YOUR
marke>ng
goals

7. 1. Theory
There
is a
simple
formula
(GAIN
FROM
INVESTMENT
-­‐
COST
OF
INVESTMENT)
ROI
=
COST
OF
INVESTMENT

8. 1. Theory
And
there
are
funnels
to
illustrate
the
theore&cal
consumer
journey
towards
a
conversion
Funnels
are
GREAT,
telling
the
story…

9. 1. Theory
…but you need to ACT ON IT!
Digital channels offer a constant opportunity for improvement

10. 2. Reality
Increased fragmentation of the media space and constant
innovation in the digital media space challenge marketers to
combine communication vehicles to reach their goals.

11. 2. Reality
A
day
of
media
consump>on
can
get
really
complex…
UK
Media
Consump?on
Habits
SOURCE:
Ofcom’s
seventh
annual
Communica>ons
Market
report

12. 3. Connecting the dots
Ad serving, social and web analytics data
enable Marketers to have access to more
extended and precise insights on consumer behavior.

13. 3. Connecting the dots
Allowing to map touch points and funnels in order to follow
consumer behaviors and not just channels.

14. 3. Connecting the dots
Understanding what’s working and what’s not
ACCOUNTABILITY
Attribution Modeling
In order to align business objectives by
understanding media spend efficiency

15. 3. Connecting the dots
Marketers need the
flexibility to experiment
with different scenarios
and understand how a
change of inputs
influences different
consumer segments.
(i.e. running TV and
paid search together
increases web base
sales for product A).

16. 3. Connecting the dots
Different combinations of messaging vehicles are needed to
comply with consumer behavior and achieve marketing
goals, leveraging synergies between channels.

17. 4. True value
Answering the right questions:
What is the true value of each online marketing channel
when comparing to marketing goals?
Where in the customer journey is each marketing channel
most likely to perform?
What are the most common paths to conversion?
Leverage weighted algorithms and attribution models
to target and re-target the “next-best” opportunity.

18. 5. Outcome
ROI tracks business performance
Funnels guide optimization
Attribution modeling helps to understand media
spend efficiency
So, ROI provides an opportunity to manage
campaigns from a business perspective.

19. Thank you