Disney Breakout
The value of a holistic
marketing effectiveness
initiative
Welcome
Nathan Vadeboncoeur
Manager, Marketing Analytics and Optimization
Disney Parks and Resorts
Scott Nuernberger
Vice President
Quantitative Marketing Group
Merkle
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Objective
• Provide overview of an Disney’s multi-year marketing effectiveness initiative
• Highlight importance of a centralized data store for media and business
response data
• Demonstrate value generated for Disney through quick examples:
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Marketing performance dashboards
Marketing mix models across the sales funnel
Robust scenario planning and optimization
Relevance to CFO on proving business impact of marketing program
Business Overview
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Disney Parks and Resorts
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One segment of the Disney Company
$12B in Revenue
Disney Parks and Resorts Marketing
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Responsible for all marketing
• Walt Disney World
• Four Theme Parks (Tickets, Passes)
• New Fantasyland opened in December
• Two Water Parks (Tickets, Passes)
• 25 Resort/Disney Vacation Club (DVC) Properties ~25,000 Rooms
• Downtown Disney
• Shopping, dining, night clubs
• ESPN Wide World of Sports
• Disneyland
• Two Theme Parks (Tickets, Passes)
• California Adventure Expansion (May)/Cars Land opened (June)
• Three Resorts
• Disney Cruise Line
• Four ship fleet
• Disney Vacation Club
• Adventures By Disney
• Aulani, A Disney Resort & Spa, Ko Olina, HI
Marketing Effectiveness Initiative
Goals
•Create robust, automated, holistic foundational data store
•Transform analytics from last click to partial attribution model
•Analyze performance data, along with associated costs and investments, to
measure ROI and determine overall value
•Use learnings to make wiser decisions on future goals, overall marketing mix,
and specific campaigns and tactics
Considerations
•Identify a “Common Currency” across media
•Define, categorize and prioritize >200 metrics across all business units to
develop meaningful and valuable KPIs
•Provide granularity of data to allow for measurement at a variety of
discipline, tactic and geographic levels
•Support both analytic efforts and marketing performance
reporting/dashboards
Foundation is a centralized Marketing Effectiveness Data Store
MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns
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* Note: all data changed to protect confidentiality
MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns
Wealth of metrics available
to select including:
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* Note: all data changed to protect confidentiality
Site traffic
Report bookings and room
nights
Social metrics
MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns
Also showing awareness and intent
metrics from market research
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* Note: all data changed to protect confidentiality
MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns
Market level comparative metrics
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* Note: all data changed to protect confidentiality
MEDS Feeds Weekly Dashboards for Specific Marketing Campaigns
Map view provides wealth of
metrics by market
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* Note: all data changed to protect confidentiality
MEDS Also Feeds Centralized Reporting for all Media Activity
Overall Media summary page with drill
down dashboards for each media
Radio Detail
Video Detail
Online Detail
TV Detail
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* Note: all data changed to protect confidentiality
Print Detail
* Note: all data changed to protect confidentiality
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* Note: all data changed to protect confidentiality
Media Summary View Provides One Overview Across All Media
* Note: all data changed to protect confidentiality
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* Note: all data changed to protect confidentiality
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* Note: all data changed to protect confidentiality
TV Detail Dashboard Can Also Drill Down into Dayparts, Networks, Markets
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* Note: all data changed to protect confidentiality
* Note: all data changed to protect confidentiality
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* Note: all data changed to protect confidentiality
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* Note: all data changed to protect confidentiality
Objective
• Provide overview of an Disney’s multi-year marketing effectiveness initiative
• Highlight importance of a centralized data store for media and business
response data
• Demonstrate value generated for Disney through quick examples:
–
–
–
–
15
Marketing performance dashboards
Marketing mix models across the sales funnel
Robust scenario planning and optimization
Relevance to CFO on proving business impact of marketing program
Analysis Example #1: Funnel Models
Although the modeling focus is generally on driving resort bookings, additional models
were built to assess the impact of media higher in the funnel
This view provider more complete picture of media impact along the sales funnel
Contributions by Model
TV
Search (Google Trends)
TV
Search (Paid)
Display
TV
Web Visits
Display
TV
Vacation Planning Kit
EM/DM has strong impact
in DRC calls as well as net
bookings
Display
TV
Calls
Display
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TV
Online Booking Engine
0%
Base
Display
TV
20%
Radio
Display
40%
Direct (DM/EM)
60%
Display
80%
TV has strong impact in
driving on-line shops as
does display
100%
Search
* Note: all data changed to protect confidentiality
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Analysis Example #2: Optimization Scenarios
Optimization scenarios can be run with any budget level and set of constraints. It is this flexibility that makes
scenario planning an effective tool to aid decision making
To illustrate, twelve optimization scenarios were run:
− Different overall budget levels (90%, 100%, 110%, and 120%)
− Different media held fixed
Any media not fixed were constrained to only change by plus or minus 30%
Results are highlighted in table below. The value in each cell represents the change in expected resort
bookings.
Detail media spend change for scenario highlighted in red shown to right
Total Budget
Scenario
90%
100% 110%
120%
Nothing fixed
1.8%
10.2% 14.3% 19.7%
Intent TV Fixed
-2.1%
6.7% 12.3% 17.9%
All Intent Media Fixed
-3.9%
5.7% 11.8% 17.4%
The 6.7% increase was
achieved by making
these changes to spend
by media
* Note: all data changed to protect confidentiality
Media
Change in Spend
Display (Conversion)
$284,395
Display (Intent)
-$356,623
Direct Mail (Conversion)
$1,030,278
Email (Conversion)
$297,177
Magazine (Conversion)
$213,982
Radio (Conversion)
$547,050
Search (Conversion)
$1,537,745
Search (Intent)
$582,038
TV (Conversion)
-$1,292,684
TV (Intent)
$0
Grand Total
$0
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Analysis Example #3: Comparative Analysis
Industry comparative view of marginal marketing ROI informs broad decisions on value
of marketing as a whole
300%
Size of bubble represents size
of marketing spend
Marginal Profit ROI
250%
Disney
200%
150%
100%
50%
0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-50%
-100%
Marketing Spend as % of Revenue
Industry 1
Industry 2
Industry 3
Industry 4
Industry 5
Marginal Profit ROI = the profit generated with $1 increase in marketing investment over current spend levels
(0% is break even).
* Note: all data changed to protect confidentiality
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Summary
• Disney embraced a long term marketing effectiveness initiative which included
organizational alignment and focuses on building required infrastructure
• The broad range of data gathered in a marketing effectiveness database
(MEDS) provides a complete picture of marketing activity and effectiveness for
all groups within Disney and their partners
• Always having the data present, validated, and up to date enables quick
turnaround of analyses to keep pace with quickly changing marketing
landscape
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Thank You!
Q&A
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