forward tv event slides v4

Forward Investment Partners – CEO / CMO WorkshopMartin Brennan – Cem Guralp – Yannick Roux

TV ADVERTISING FOR ONLINE BUSINESSESHOW TO GET REAL-LIFE ROI

5 September 2013

FORWARD PORTFOLIO WORKSHOP #3H1 2013:> Raising Capital in 2013> Online Customer Acquisition: There’s Nothing New Left To Learn, Right?

FUTURE EVENTS:> Maximising LTV: Conversion / Activation, Retention, Revenue, Referral> Product Management: Roles, Job Descriptions and Best Practices> How A Great COO Can Add Value To Your Business> Internationalisation / Localisation for High Growth Web Businesses> Recruiting Engineers

Let us know what other topics would be useful: cem.guralp@forward.co.uk

TODAY:

> TV ADVERTISING FOR ONLINE BUSINESSES:How To Get Real-Life ROI

TODAY:

DATA, INSIGHTS & LEARNINGS2.15PM PART 1> TV Ad KPIs from 13 Web Businesses Cem Guralp, Events Curator, Forward> Case Studies: Madbid and HPI Madhur Srivastava, Consumer Director, HPI (formerly COO / co-Founder, MadBid)

> TV Advertising and Social Media Don O’Leary, Twitter> 5 Things I’ve Learned About TV Advertising For Online Brands James Burgess, CEO, Squadron Media (formerly TV marketing consultant to Moo, Seatwave, Zoopla, eHarmony)

3.30PM COFFEE BREAK

3.45PM PART 2

> Case Study: Secret Sales Robert Moss, CMO> Case Study: Just Eat Mat Braddy, CMO

> Case Study: Paddy Power Tom Wyse, Head of Media> Measuring Online Response From TV Advertising Calum Smeaton, CEO, TVSquared

5.00PM DRINKS

FORWARD DATA PRESENTATIONCEM GURALP / 5 September 2013

WE SENT OUT A SURVEY

13 Web CMOs / CEOs

23 Questions

Lots of Data

SIX TAKEAWAYS FROM THE DATA

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

Web Businesses TV Media Spend

Top spending web companies on TV

BRITISH GAS ENERGY SMART HOTELS.COM REDSPOTTEDHANKY.COM REED EMPLOYMENT FEELUNIQUE.COM SSE JOINIPLAN.CO.UK CHRISTIANMINGLE.COM ROXYPALACE.COM NETPLAY TV JACKPOT247.COM BIDRIVALS.CO.UK

£30m

% of Marketing Spend on TV

Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9

0% 0% 0%5% 5%

14%

25% 25%

50%

90%

Range of Creative Spend

Series1

$5k $5k $5k$5k $5k $5k $5k

$5k

$5k

$5k

Series1

£4k £5k £12k£30k £30k £40k £45k

£100k

£300k

£350k

OTHER CONSIDERATIONS

Coordination with PPC• “Unleash brand search budget while on TV”• “TV increases brand searches, so we up spend”

When to start• “What tests have people found most viable?”• “Can you start small? Or do you need to do big

splash to get anything out of it?”

1. TV is part of the mix

2. For Direct Response and Branding3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

WHAT ARE YOUR OBJECTIVES WITH TV?

1 2 3 4 5 6 7 80%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DRBranding

Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 80% 0% 0%

10%

30%

50% 50%

70% 70%

100% 100% 100%90%

70%

50% 50%

30% 30%

Branding Direct Response

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

WHAT KPIs DO YOU TRACK?

Traffic u

plift

Branded

searc

h uplift ROICPA

Uplift in

orders

/ sale

sLTV

Regist

rations u

plift

Increase

in CTR

of paid

searc

h ads

Brand aw

areness

surve

y resu

lts

Increase

in onsit

e conve

rsion ra

te0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

OBSERVATION PERIOD

• 10 minute initial spike

• Followed by a residual tail–90 days…?

RESULTS: TRAFFIC UPLIFT

Uplift in Site Traffic Uplift in Branded Search

10% – 60% 8% – 150%

“Depends on Spend”

CPA and LTV RESULTSCPA LTV

• Similar to other core channels • Same as other paid channels

• Too early to tell but will end up:• 1.5x PPC

• ~1.35x blended CPA• too early, but will be better than PPC

• Varies by market but generally• TV +25% vs paid search• +50% vs other channels

• Still working on LTV metrics

• Lower than PPC • N/A

• 40% lower than PPC• 20% lower than blended CPA • N/A

• 50%+ PPC (5%+ blended CPA) • 100%+ PPC (10% blended LTV)

TOOLS and SOFTWARES...

We use our analytics platform to monitor visits/revenue

A lot of the data analytics team time

Adwords and GA

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing

4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

ITERATING and OPTIMISING

• “Optimising mobile sign-up flow makes a big difference”

• “Creative A/B testing”• “Use smaller markets/channels to test performance

of different creative”• “Use a 12 week campaign window [to keep creative

fresh], and manage frequency”

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…

5. Targeting; a mixed review6. Agencies; A necessary evil!

MIXED RESULTS FROM TARGETING

Good Results Bad Results

• “Can be 3x as good when targeted”

• “Episode specific was very successful”

• “Great CPLs!”• “50% better response”

• “Sometimes targeted ads perform worse than non-

targeted – GO FIGURE”• “Targeting was hard to

scale”• “Buying cheap has been the

biggest driver of performance, not targeting”

VERY HIT AND MISS

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!

AGENCIES ARE ESSENTIAL, BUT FRUSTRATING• Everyone we spoke to had used agencies, • they are necessary • and this is what they had to say:

“try to rip you off, so do your research”

“don't get online brands”

“Both [kinds] are frustrating!!”

“Agencies aren’t flexible”

“Find an analytical media buying agency” “poor understanding

of e-commerce”

SIX TAKEAWAYS FROM THE DATA

1. TV is part of the mix2. For Direct Response And Branding

3. Measuring is the hard thing4. Its new(ish) – lots to learn…5. Targeting; a mixed review

6. Agencies; A necessary evil!