Presentation by Tom Mangan and J. Patrick Bewley of Acxiom Consulting Services at DMA 2009 in San Diego.

1. DMA09
San Diego, California
J. Patrick Bewley
VP, Global Marketing Strategy
October 17, 2009
© 2009 Acxiom Corporation. All Rights Reserved.

2. Helping Marketers Find Answers
• Media Mix Optimization is a comprehensive and dynamic strategic
capability that enables marketing practitioners to scientifically and
quantitatively measure, plan, manage and optimize marketing
resources and investments
• MMO helps marketers to regularly capture insight to:
– Drive business results through better strategic planning and execution of
the marketing process
– Identify opportunities to increase margin through improved ROI on existing
marketing investments
– Improve collaboration, brand positioning, coordination and consistency of
analyses across lines of business, brands and geographies
– Align resources to execute customer-centric strategies
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© 2009 Acxiom Corporation. All Rights Reserved.

3. Media Mix Optimization – what it is and what it is not
What it is What it isn’t
An application
A process and journey
model or event
Refinement to campaign
strategy or optimization
Organization change
of a budget for a
particular department
Transformational Incremental efficiency
business model improvement
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© 2009 Acxiom Corporation. All Rights Reserved.

4. Approaches
Applied to… Goal…
Inferred Attribution
Traditionally above the line Seeks to correlate media spend
marketing spend (Print, TV, with sales results, accounting for:
Radio) seasonality, competition
Direct Attribution
Traditionally below the line Seeks to close the loop on
marketing spend (Direct: IPTV, channel specific campaigns,
Mail, Email) then optimize across
Normative Performance
How do I perform against my Introduces benchmarking into
vertical market, geo, or market the equation to create an
at large? “open system”
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© 2009 Acxiom Corporation. All Rights Reserved.

5. Linking Media Strategy to Customer Lifecycle
Above the line spend
Below the line spend
Customer Value
Intelligently Prospect Lengthen and Deepen Identify and Address
to Minimize CPA Customer Value Potential Attriters
Y1 Y2 Y3 Y 4
Time
Y0
Acquisition Strategies Retention and Growth Strategies Attrition Strategies
Inferred Attribution Direct Attribution Direct Attribution
Normative Performance Normative Performance
Adopted from: Dr. V Kumar
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© 2009 Acxiom Corporation. All Rights Reserved.

6. Social Interaction
Triggers Incremental
Device and Additional
User and Consumer
Lifecycle
Incremental
Device
Consumer
Value
Content Purchase
Device Music
Registration Transmitter
Lifecycle
Relationship Feature
Strategy Service
Next Device Upgrade
Device
Purchase
Purchase
Ņ Cliff Ó
The
Consumer Life
Channel e
Strategy
SE SE Operator
Operator WEBSITE SMS Email
STORE STORE
Key Opportunity Revenue Impact Margin Impact
Avenue Revenue Per User (ARPU) Increase in ARPU
Marketing Spend Per Device Shipped Increased Margin Per Device
Value
Relationship
Improved Sales Mix Increased Revenue Per User Increased Margin Per User
Devices Sold per User Increased Revenue Per User Increased Margin Per User
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7. Connecting the dots…
Inferred Redeployed Redeployed
Attribution Media Mix #1 Media Mix #2
1 3 10-15% Reduction 6 Up to 30% Reduction off
in Media Spend original media spend
Enhanced Channel
Lifecycle Direct
Customer Propensity
Marketing Attribution
Profiles Models
2 4 Up to 20% top 5 7 10-15% reduction in
line growth direct spend
Normative
The “last” 5%
Performance
8
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© 2009 Acxiom Corporation. All Rights Reserved.

8. A Comprehensive MMO Solution
Marketing
Investments Baseline Offerings Included with Baseline Offerings (or stand alone)
Media / Marketing Media Type Marketing Cannibalization Competitor Mix
• Television
Channel Mix Optimization Spend Assessment Impact
• Newspaper
Interplay Modeling Benchmarking Assessment
• Magazine
• Radio Single or
• Out-of-Home Multiple Peer Determining Assessing
• Cinema comparison of impact on competitive
marketing revenues from marketing
• Strategy • Analytics investments other activity
• Direct Mail • Response • Segmentation Channel
and return channels impacts
• Teleservices Attribution • Optimization
• DR Broadcast • Predictive
• Digital Modeling
• DR Print Single or
• Mobile Multiple
Quantitatively-based, Continuously Assessed Output
• Optimal marketing investment mix to • Scenario planning
- reach the most profitable consumers • Quantifies halo effects
- with the right product and offer • Consolidates all marketing analyses into a single
• Single product or full portfolio optimization database
• Forecasting • Provides effective, relevant reporting
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© 2009 Acxiom Corporation. All Rights Reserved.

9. Our Approach
• Advanced analytics cover descriptive, diagnostic, predictive and
prescriptive analytic work
• Provide strategy, insights and execution on all direct and digital
channels and are building capabilities based on customer preferences
• Leverage our data and knowledge-base recognition capabilities to
avoid the garbage in, garbage out trap
• Automate the customer recognition process and provide the data at a
moments notice; analytics are replicable, repeatable and scalable;
partner with model visualization specialists
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© 2009 Acxiom Corporation. All Rights Reserved.

10. In summary…
• There are multiple approaches and definitions of MMO
• You should pick an approach that is consistent with your goals
• To get the best return, you should link above the line and below the line MMO
efforts
• Normative performance expands your horizons
• It’s a journey, not an event
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© 2009 Acxiom Corporation. All Rights Reserved.

11. Appendix

12. Key Messages
• Solving the extremely complex and dynamic problem of measuring the
performance of media and channel combinations
• Focusing on consumer-level media attribution
• Helping marketers document their business impact … verifiability,
accountability, measurability and return on investment
• Providing marketers with accurate media usage data and consumer insight to
drive consumer-centric media planning
• Media mix optimization leverages Acxiom’s demonstrable expertise in data,
analytics, technology and consulting
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© 2009 Acxiom Corporation. All Rights Reserved.

13. Changes In Media and Consumption Are Generating Vexing
Questions From Marketers
• Insight
– Which media mix drove the most volume
– What’s the ROI for each marketing investment
– Why share is up or down for this brand or line of business
• Forecasting
– What volume and profit will my current marketing strategy drive
– What would be the impact of a change in marketing mix
– How will a competitor’s marketing investment affect my profitability
• Optimizing
– What plan maximizes volume for the same spend
– How can a marketer maximize revenue after a budget cut
– How best to invest a windfall
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© 2009 Acxiom Corporation. All Rights Reserved.

14. Inferred Attribution – Top Down
Is right when:
• You have two, preferably three years of weekly sales
and marketing data
• You have a large and highly diverse marketing mix
• You go to market primarily via indirect channels
Work best when:
• They correlate sales and marketing activities using
linear and multivariate regression analysis
• Quantify the impact of multiple demand drivers –
environmental (i.e. gasoline prices, temperature)
• Reveal incremental impact and marginal return
• Can be viewed by geographic, media, or brand level
budget allocations
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© 2009 Acxiom Corporation. All Rights Reserved.

15. Direct Attribution – Bottom Up Efficiency
Curve
Maximize Return
Is right when:
• You have (or can develop) rich customer profiles
• You have multiple products that can be cross/up sold
• You have shopping basket data that allows for Fixed Marketing
Spend
collaborative filtering analysis
Efficiency
• You go to market primarily direct Curve
Fixed Return
Work best when:
• They discretely isolate a customer action (i.e.
additional information inquiry)
• You spend the time to understand the decision
making process
Minimize Spend
• They are used in a test and control methodology
• Can be viewed by geographic, media, or product
level budget allocations
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© 2009 Acxiom Corporation. All Rights Reserved.

16. Normative Performance– Outside In
Is right when:
• You have either:
– Mature mix models (Inferred or Direct)
– Or no clue where to start
• You use them to get the last mile out of
marketing spend
• You operate in a competitive or saturated
market
• You need an objective, independent case for
change
Works best when:
• They are applied at a fundamental unit level
such as CPA, allowing a apples to apples
comparison
• They are viewed at the vertical, and geo level
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© 2009 Acxiom Corporation. All Rights Reserved.

17. Tool Examples – Inferred Attribution
Intuitive
Easily create constraints based scenarios
Transparent
Allow complex manipulation of the models
“Under the hood” where appropriate
Actual Vs. Forecast
Ability to contrast results against the model
predictions
Constraints based optimization
Allows user to input spend/activity and
smooth a result to revenue, or profit targets
Side by Side contrast
Ability to contrast one planed scenario
against another in an easy to interpret
interface
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© 2009 Acxiom Corporation. All Rights Reserved.

18. Tool Examples – Direct Attribution
Dashboard Summary 11/ 01/2006 Š 11/30/ 2006 [-]
Configurable Dashboards
Provide rs Se le c te d [+ ] Me dia Type s Se le c te d [+ ] Sum m a ry Se le c te d [+ ]
American Express D irect Mail Average C ost Per Touch : $0.83
Avis Magazine Total Outbound Solicitations : 12,367,972
Delta D ental
Hartford H ome
Email
Outbound Telemarketing
D irect Mail
Magazine
1, 367,972
1, 000,000 Point of View, Point of Time Reporting
Statistical Analysis
New York Life Email 10, 000,000
more ... more ...
Solicitation Summary [-]
Monthly Solic ita tion by Provide r Provide r Solic ita tion Sta tistic s [+]
Use of complex concepts to create Readable
Visual Results
Provider D irect Mail Magazine Email Total % Total
American Express 1,367, 972 1, 367,972 1,367, 972 1,367, 972 33%
Avis 1,367, 972 1, 367,972 1,367, 972 1,367, 972 17%
D elta D ental
H artford H ome
1,367, 972
1,367, 972
1, 367,972
1, 367,972
1,367, 972
1,367, 972
1,367, 972
1,367, 972
25%
25%
more ...
Top Demographic Analysis
Inquiry /Response Summary [-]
Net out top segments such as; age, income, and
Monthly Inquiry by Provide r Provide r Inquiry by Me dia Type
Provider D irect Mail Magazine Email Total
[+ ]
geography
Real Time Reports
American Express 2,304 / 4% 1,304 / 2% 1, 304 / 1.5% 4912 / 2.3%
Avis 2,304 / 4% 1,304 / 2% 1, 304 / 1.5% 4912 / 2.3%
D elta D ental 2,304 / 4% 1,304 / 2% 1, 304 / 1.5% 4912 / 2.3%
Up to the minute/day campaign information makes
H artford H ome 2,304 / 4% 1,304 / 2% 1, 304 / 1.5% 4912 / 2.3%
more ...
Product/ Conversion Summary
Provide r Produc t C onve rsion Sta tistic s
[-]
[+ ]
decisions nimble
Provider
N umber of C onversions
% C onversion R ate
American Express
1, 523
9%
Avis
1, 523
9%
D elta D ental
1,523
9%
H artford Home
1, 523
9%
UI Ergonomics
A ggregate C ost Per A cquisition
C onversion B y Product Type
$236. 08 $236. 08 $236.08 $236. 08
Focus on simplifying interpretation, faster
decisions
more ...
Key Metrics
Top marketing metrics like CPR, CPA in real time
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© 2009 Acxiom Corporation. All Rights Reserved.