Which Medium Works:Multichannel Testing for High

Performance Results

Spyro KourtisPresident / CEO, Hacker Group

October 4, 2011

• Our vision statement reads: “Create integrated programs that reach the target

audience where they live, work and play…” “…we are NOT media and technology neutral – we are

biased towards performance and this drives ALL

recommendations…”

• We only pursue opportunities that deliver results for our clients

Performance Bias

Presentation brought to you by the following… following…

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Once Upon A Time• Brand advertising was king, queen and the entire royal court

• The rise of “measurable” marketing in the digital world happened out of necessity and I’m sure glad it did

• My journey east to find truth

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End the theoretical fairy tale, get back to practical work

1. Focus on objectives and metrics that matter to the executive suite

2. Build and track all programs backward from point of sale

3. The new and improved integration

4. Buy into multi-dimensional testing

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#1 Measurement ≠ Successful• Many confuse “measurability” with ROI• Traditional and interactive measurements are not always

meaningful for our clients and stop short of sales

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#2 Backward from point of sale

• What’s my budget?

CPS x Customers = Budget

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What’s your goal?

• Test, measure and roll out with the best combinations to suit your needs

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Calls Clicks Sales from

CallsSales from

ClicksDirect Mail 28.90$ 223.53$ 127.52$ 1,788.24$ Email 140.97$ 10.75$ 671.27$ 89.60$ Mobile Barcode 142.32$ 237.50$ 255.03$ 1,979.17$ Mobile Advertising 10.01$ 359.39$ 168.15$ 2,807.77$ Tablet Advertising -$ 1.37$ -$ 1,407.41$

Cost Per

It begins with targeting

• Who is the target audience?

#2 It begins with targeting

• Three flavors: Behavioral/transactional information is

best Demographic/ Firmagraphic Self reported information

─ Acquisition – big ticket sales─ Customer communications

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#2 Provide content the way they want to consume it

• Seamlessly transition physical to digital

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Multichannel Testing for High-Performance Results

The New and Improved Integration

#3 No one discipline should own a specific media channel

• Mass advertising is more than TV• And direct marketing is more than just mail

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• Digital is more than just digital, huh?

• What is the responsibility and expertise of a digital agency?

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#3 No one discipline should own a specific media channel

BRANDING RECO:

• Rich Media• 2/3 CPM• One network

DIRECT RECO:• Drive leads to Call• CPC• Network testing

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• No one discipline should own a specific media channel

Integration and optimization

• Integration does not mean executing a campaign across multiple media for uncertain “synergies”

• We optimize performance by reinvesting in media that drive results and dropping those that don’t

A + B + C + D + E = ?

D > E > A > C > B

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#3 Our approach to multi-channel campaigns

• Start holistically

• Measure discretely

• Optimize by channel

• Start over: Allocate media holistically

• Not all media is created equal

• New media synergies

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Begin with a holistic view

• Not al l media are created equal !• Set a goal for what to expect f rom each

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• During execution phase, measure all media discretely

• At the right cadence for the channel

• Optimize discretely

Break it down

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• Start over again: Allocate media by channel based on performance and optimization

Put it back together

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#3 Not all media is created equal

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#3 The power of one prospect universe

• Tracks all solicitations by physical and email address

• Don’t forget mobile phone #

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Keeps you from drawing wrong conclusions One Prospect Universe

Format Summary Lift Over Control

ROI

Mail Package Only 31.22% 1518%

Mail Package with Email Follow Up

-53.22% -2619%

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Our media strategy: The 4 Cs

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1 2

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#4 Testing strategy

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Look out brand, mobile web isn’t just for impressions

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1 2

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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM

Step 1: The PowerTest® methodology

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1 2

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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM

Step 2: Look for winning combinations (HotZones™)

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1 2

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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM

Step 3: CheckTest ™ or rollout winners

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#4 Multi-Channel media synergies

• Timing• Offers

Consistency increases awareness Brand them

• Not as concerned about creative synergy

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Don’t forget about conversion: Testing strategies

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• Lessons learned – don’t assume that you have the right conversion process in place!

• Avoid spilling leads by validating that the process in place will convert

• Then test to optimize conversion for the best results

Sales conversion: Site testing

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• A/B/n Testing• Multivariate Testing (MVT)• A/B/n + MVT

Sales conversion: Site testing

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Conclusions

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• Remember to focus on the metrics that matter

• Tear down silos – plan based on discipline, and execute across ALL relevant accountable media

• Don’t attempt to boil the ocean

Questions and Answers

Thank You!!

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