RETURN ON MARKETING INVESTMENT
JUNE 2012
A BIT ABOUT ME
MEDIA PLANNER
 DIGITAL MEDIA STRATEGY
 ADVERTISING

My objectives
Get you to rethink the value and process of marketing
and how you look at the measurement of marketing
inputs .
 Consider getting into the habit of measurement .

Persuade you …that marketers are not
guesstimators and fluke artists
TO AGREE ON ROI , WE MUST FIRST AGREE
ON HOW MARKETING WORKS .
HOW DOES MARKETING CONVERT TO A SALE?
MARKETING IS ABOUT IDENTIFYING NEEDS
AND SERVING THOSE NEEDS AT A PROFIT
NEEDS

FUNCTIONAL

EMOTIONAL
EMOTIONAL NEEDS
FRIENDSHIP
90
RANK AND IDENTIFY MOST IMPORTANT DRIVERS
IN A CATEGORY OR CONSUMER GROUP
80
70
60
50
40
30
20
10
0
GREAT BEER AFFORDABLE
BEING
RELAXES
PRIDE IN
THIRST
AVAILABLE
TASTE
TANZANIAN AFTER WORK COUNTRY QUENCHING
MAKES YOU BRINGS ME
BUZZ
TOGETHER
WITH
FRIENDS
QUANTIFY EACH OPPORTUNITY IN
CONSUMPTION OR PURCHASE
VOLUME/BUSINESS OPPORTUNITY PER BUSINESS
/CONSUMPTION DRIVER.
Execute VS each variable –Example
Variable
Execution
Measure
Reward
Affordable
Price promotion
Small packs
New users
New frequency of use
10,000 Cases
Being Tanzanian
Miss TZ
Taifa Stars
Advertising
Post sponsorship
research
Post ad research
100,000 Cases
Relaxes After work
Advertising
Product placement
Tracking research
15,000 Cases
Thirst quenching
Advertising
Merchandising
Tracking research
100,000 Cases
Availability
Weighted distribution
@ + 70% at all key
seasons
Distribution research
200,000 Cases
Brings me closer to
friends
Advertising
Merchandising
Post ad research
Placement in social
places
20,000 Cases
Desired
attributes
Our brand
attributes
Marketing Mix Modelling
What is MMM X
Based on historical data , companies are able to establish
how each of the important variables affect business
growth .
 These models measure combinations of these variables
and can attribute sales to how these variables work
together.

VARIABLES AND CO RELATION
J
SALES
F
M
A
M
J
J
A
S
O
N
D
50,000 50000 10000 45000 25000 25000 35000 56000 65000 35000 20000 40000
AD SOV
50%
50%
20%
10%
10%
10%
20%
40%
70%
50%
10%
10%
WEIGHTED DISTRIBUTION
70%
70%
60%
40%
20%
20%
50%
60%
60%
50%
30%
60%
1
1
1
1
1
1
1
0.5
0.5
0.3
0.4
0.7
0.5
0.5
0.6
1
0.7
0.3
0.7
1
1
0.6
0.3
0.2
INDEX OF SOV TO COMPETITION
INDEX OF DISTRIBUTION TO
COMPETITION
ROI MEASURES
Return on objectives

What is the cost vs benefits attributed towards achieving
an objective.
◦ Sampling
◦ Awareness
◦ Trial
ROMI
This measure attempts to quantify the amount of
additional revenue attributable to marketing efforts .
 Incremental revenues attributable to marketing in Tshs *
Contribution margin % - Marketing cost .
 If you spend 100,000 and gain 500,000 in additional
sales and you make an average of 60% margin then your
ROMI is 60% x 500,000 = 300,000

Media ROI
Establish your market
 Establish how many of them you can reach on media
without being wasteful.
 Track message delivery .
 Track ROI.

Barriers to measurement
Attitude of the business to negative information.
 Cost of objective measures .
 Structural issues within the business –Data collection not
a defined area of work for any department .
 Management culture of the business

Who is responsible for marketing measurement
processes within your business ?
Marketing and
Finance only , 17%
Cross Functional Mgt
, 20%
US Association of National
Advertisers Poll
Informal grass roots
efforts , 24%
Marketing
department , 31%
US companies

Key issues
◦ Lack of alignment between marketing and finance on ROI
◦ Lack of alignment of ROI goals with company goals and
strategies.
◦ Over half have no written ROI goals .
Getting started
Getting started

Attitude – Test and learn

Start with realistic and available information .
Encourage admission of errors and encourage non repeat
.
 Scale and add on new measures.

Online Media planning
Setting up your campaign objectives?
 Like all campaigns, those that use online need to be
clear and tangible. (SMART)
 A SIMPLE awareness objective could read – To raise
awareness of our product – We aim to reach 100,000 of
our target audience with a message introducing our
new product in the first 2 weeks after launch

The decision Funnel
Target Sales /Engagements
Target Clicks
How many
consumers do I
What number of
want to engage
consumers must
come to my
website
00s
000s
Target Impressions
What number of
consumers must
see my online ads
000,000s
ROMI on Ads on a Baby and Mother`s Fair
2009
Media director –Frank Maina
Case study
Digital media spans categories and types

Online

Mobile

Digital Outdoor
Tools to measure digital media ROI are more
immediate and diverse

The technology platforms have measurement in built .

Ease of data interpretation

Accountability
Case study
A moms event in Kenya
2010
Objectives
Grow awareness for the 2010 fair in
Nairobi
 Optimise communication across all
media at least cost
Leverage on PR services to
communicate credibility and connect with
moms.
Provide mothers with a reason to attend
the fair by providing them with useful
information
 Seed the campaign to facilitate word of
mouth communication in the target group.
Media Summary
Post buy –All women 24-34 Nairobi
TV:-
Print:-
Reach 85%
Reach 17%
AVF 3.1
AVF 1
Coverage 442,850
Coverage 88’570
Radio:Reach 8%
Street Banners (Traffic
Counts not available)
AVF 1.5
Jogoo Road
Coverage 41,680
Gigiri
Online:Impressions 8,849,023
Clicks 10,912
Click through Ratio 0.123
Nyayo
Consolata shrines
Ngong RD Uchumi hyper
spend
700,000
savings
280,000
MEDIA BUDGET SPEND AND SAVINGS
623,600
KENYAN SHILINGS BEFORE TAXES
600,000
Lower savings as compared to last
year because of exclusion of Radio
and minimal print deployment.. TV
offered lower discounts
500,000
400,000
300,000
1,075,679
200,000.00
200,000
174,979
163,000
114,100
80,405
100,000
5000
tv spend
tv saving
online
spend
online
saving
street
banner
spend
MEDIA
street
banner
saving
print spend print saving
BABY BANDA 2010 FACEBOOK STATS
are u a dad
baby mun Nutrition
Pregnant
baby shower
need preg advise
pregnancy advise 2
family fun day
love ur self
maternity show
3000
2500
Banner click through was
optimised so as to remain
within budget limits
2269
CUMULATIVE CLICKS
2000
1812
1,606
1500
1864
1752
1213
937
721
81
0
SE23
2058
1751
1225
1249
1321
1380
1080
543
8
0
SE 20
2020
976
482
421
233
0
2098
1955
1580
740
644
500
1932
1826
2331
2580
2428
1462
1179
1129
1008
1916
2308
1637
1414
1363
1000
1890
2299
2482
2401
0
SE 27
89
56
32
11
0
OC 1
16
0
OC 3
797
543
421
233
16
0
OC 6
-500
DATE
321
38
0
OC 7
362
45
0
OC 12
599
429
60
0
OC13
102
0
OC 15
116
0
OC 16
MEDIA SPOT AND RATINGS
80
TV SPOTS
TV RATINGS
RADIO SPOTS
RADIO RATINGS
PRINT SPOTS
PRINT RATINGS
71.4
70
68.4
67.19
60
SPOTS AND RATINGS
50
44
42.99
40
30
25
25
20
14
10
9
1
0
-10
1
12
9
6
4
2
1
12.3
12
6
3
2
1
3
2
5
5
2
3
2
3
1
1
fri
sat
sun
mon
tue
wed
thu
fri
sat
sun
mon
tue
wed
thu
fri
sat
sun
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
DAY OF THE MONTH
Media schedule compliance was at 95% with KTN rescheduling spots that were missed to later date with
acceptable ratings.
PR enhanced the schedule through News items and print coverage that boosted the ratings of the media
Schedule by approximately 30% of core target
ATTENDANCE
RTA, 4%
Repeat, 18%
First Time, 78%
N=2129 respondents
Aprox 5% of the Questionnaires were repeated and therefore counted only once
BABY BABNDA PREGNANCY AND BABY FAIR YEAR ON YEAR
AWARENESS
45%
40%
20010
39%
38%
2009
Despite addition 3 spots on TV we have only 1% increase in awareness through TV
Increase in online performance is as a result of face book content updates, newsletter broadcasts.
35%
Increase in people (WOM)may also include the viral nature of news letter references, face book articles
forwards.
30%
Loss of awareness through Roadside Banners with increased sites may be due to clutter at banner areas
25%
25%
20%
18%
15%
13%
12%
10%
8%
5%
10%
9%
8%
6%
5%
5%
3%
0% 0%
0%
TV
RAD
PRINT
WEB
PEOPLE
RD BAN
OTHER
POSTER
Spend budget proportions
MEDIA EXPOSURE
PRINT, 11%
POSTER, 5%
STREET BANNERS, 15%
BANNERS, 8%
TV, 58%
ONLINE, 16%
TV, 39%
PEOPLE, 25%
Online still remains the best return on investment at a
conversion to budget ratio of 1.3 ie 16% budget investment
giving 12% return.
Print effectiveness was greatly aided by pr vs cost
People, TV and online yields 75% awareness on media
RADIO, 5%
WEB, 12%
PRINT, 6%
People increased by 7% from last year by virtue of News letter,
and facebook sharing of among facebookers
Online grew by 4% as a result of enhanced banner rotation to
address demographics and psychographic.
TV remained largely the same at 1% growth despite additional
spot adverts
FACEBOOK BABY BANDA PREGNANCY FAIR 2010
impressions
25%
20%
24%
0.160
Clicks
24%
0.099
19%
0.116
24%
22%
0.151
0.109
18%
16%
14%
15%
13%
%
13%
0.121
10%
6%
5%
5%
0.083
2%
1%
0%
Are you a dad
baby Nutrition
ever has baby
shower
family fun day
love yourself
BASE = 8,849,023 IMP 10,912 Clicks
meternity beauty
pageant
pregnant
Unknown, 2%
EVER HAD A BABY SHOWER DEMOGRAPHICS (599 CLICKS)
45%
Female
40%
Male
Male, 29%
38%
35%
Female, 69%
30%
baby shower
23%
%
25%
20%
15%
12%
13%
10%
5%
4%
5%
1%
1%
1%
1%
0%
18-24
25-34
35-44
45-54
AGE BANDS
55-64
65-100
LOVE YOURSELF BANNER CLICK DEMOGRAPHICS (1751)
35%
Female
unknown, 4%
Male
32%
30%
25%
male, 39%
female, 57%
20%
20%
19%
15%
12%
10%
4%
5%
3%
1%
1%
1%
1%
1%
1%
0%
18-24
25-34
35-44
45-54
55-64
65-100
MATERNITY BEAUTY PAGEANT DEMOGRAPHICS (2580)
40%
Female
Male
Unknown, 6%
36%
35%
30%
25%
Male, 25%
25%
20%
Female, 69%
15%
12%
10%
8%
4%
5%
3%
2%
1%
1%
2%
0%
1%
0%
18-24
25-34
35-44
45-54
55-64
65-100
35%
ARE YOU A DAD? BANNER CLICK DEMOGRAPHICS (2058)
Female
Unknown, 5%
Male
30%
30%
Female, 43%
25%
22%
Male, 52%
20%
16%
15%
13%
10%
7%
5%
3%
2%
0%
1%
0%
1%
1%
0%
18-24
25-34
35-44
45-54
55-64
65-100
35%
ARE YOU PREGNANT BANNER CLICK DEMOGRAPHICS (2428)
Female
Male
Unknown, 6%
31%
30%
Male, 35%
25%
20%
20%
Female, 59%
17%
15%
12%
10%
5%
5%
4%
1%
1%
1%
1%
0%
1%
0%
18-24
25-34
35-44
45-54
55-64
65-100
BABY AND MUM NUTRITION CLICK DEMOGRAPHICS (1380)
50%
Female
Male
45%
45%
Unknown ,
5%
40%
35%
Male, 21%
30%
25%
20%
Female,
74%
19%
15%
11%
10%
6%
5%
5%
2%
2%
0%
1%
2%
0%
0%
0%
18-24
25-34
35-44
45-54
55-64
65-100
100%
TOTAL NEWS PERFORMANCE
96%
Baby Banda News Letter
90%
delivered news letters opened news letters Number of times opened clicked links forwarded news letters forwarded & open
WEEK 1 (822)
809
185
255
28
20
6
WEEK 2 (905)
817
166
240
32
3
2
WEEK 3 (920)
905
227
320
48
2
1
80%
70%
There were approximately 10 complaints out of 571 newsletter opened.
60%
Aprox 40% of newsletters opened, were opened twice. Showing that the
content was engaging.
50%
19% of the news letters opened supplied extra info through links that
were clicked on
40%
39% of the news letters that were forwarded, between recipients were
opened
36%
30%
23%
19%
20%
10%
4%
0%
delivered
opened
clicked
forwarded
forwarded & opened
learning's
TV:Additional 3 spots yielded 1% increase in awareness in comparison to last year’s schedule. Therefore need
to maintain tight ROI on spot buying.
PR: Pr yielded coverage equivalent to 30% of exposure on TV radio and Print at competitive rates (not
Solus), and may be an avenue to explore in raising the profile of the fair.
ROAD BANNERS: Despite three extra sites, banner awareness fell by 2% from last year, indicating that traffic may be
substantially lower towards the mid of the month rather than the end of the month.
 Time may be saved buy separating printing works from banner hosting solution providers, when dealing
with small providers.
Online: Online contribution to awareness improved by 4%( with improved our face book page likes, 300%)
because of relevant useful content updates, longer online advertising, and newsletter broadcasts.
