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Digital Marketing Strategies for Financial Services February 2013

Digital Marketing Strategies for Financial Services

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Presentation by Jim Marous and Jay Dillemuth in the Backbase webinar on Digital Marketing Strategies for Financial Services. The rise in digital technologies is transforming how bank marketers can reach, engage and deliver value to their customers. With a proliferation of media channels, financial marketers must understand these new digital tools and be in a position to implement digital strategies that add value to the marketing mix and integrate with already established marketing and business practices. This webinar will discuss several digital marketing strategies that are being successfully used by financial organizations to reach digitally savvy audiences. Tools will be presented along with examples of ways to gain a competitive advantage online

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Page 1: Digital Marketing Strategies for Financial Services

Digital Marketing Strategies for Financial Services February 2013

Page 2: Digital Marketing Strategies for Financial Services

Digital Marketing Allocation

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Page 3: Digital Marketing Strategies for Financial Services

Digital Marketing Growth

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Page 4: Digital Marketing Strategies for Financial Services

Digital Marketing Emphasis

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Page 5: Digital Marketing Strategies for Financial Services

Secrets To Digital Marketing Success

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•  Email and Direct Mail Aren’t Dead

•  Make Message Simple

•  Everything is Integrated

•  Content is Currency

Page 6: Digital Marketing Strategies for Financial Services

5 Digital Marketing Mistakes Banks Make

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•  Erecting channel silos

•  Underfunding the banks website

•  Lack of KPIs and measurement

•  Not sharing data within organization

•  Not leveraging new digital tools

Page 7: Digital Marketing Strategies for Financial Services

3 Key Digital Marketing Strategies

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•  Multi-Channel Attribution and Attribution Modeling

•  Retargeting 2.0

•  Responsive Design for Mobile Optimization

Page 8: Digital Marketing Strategies for Financial Services

3 Key Digital Marketing Strategies

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•  Multi-Channel Attribution and Attribution Modeling

•  Retargeting 2.0

•  Responsive Design for Mobile Optimization

Page 9: Digital Marketing Strategies for Financial Services

#1: Attribution Modeling

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>  Enables marketers to look at the history of ads/touches that contribute to a conversion over an extended period of time

>  Credit is given to each ad or “touch point” within the sales funnel rather than crediting the last ad clicked or viewed

Page 10: Digital Marketing Strategies for Financial Services

Our Target Converter Is Not Clicking •  Our target audience is not clicking on banners, yet they are converting •  The demographic that is clicking is very different from the demographic

which is converting

Clickers primarily <18 and >50, with <$30K HHI

Yet Converters are primarily 18-49, HHI $60K+

Source: Quantcast (based on combination of Tech, Insurance, & Apparel categories)

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Page 11: Digital Marketing Strategies for Financial Services

Evaluating Display Beyond the Last Ad Served

•  Online media has traditionally been measured based on a “last ad” model, where 100% of the credit is attributed to the last ad clicked or viewed

•  However studies have shown that the “last ad” model may ignore up to 94% of media touchpoints in converter histories.*

•  Attribution modeling considers the relative contribution of those prior touches

•  End Result…ability to drive scale by validating impact of higher funnel media

*Song, Young-Bean. Senior Director Atlas Institute. “Engagement Mapping: A new measurement standard is emerging for advertisers.’

Conversion SEM  Display RT Internal Display

BT Display/ Rich Media

Last Ad

Prior Touches

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Page 12: Digital Marketing Strategies for Financial Services

Common Cross Channel Dynamics

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Lifts response of:

Drives volume to:

Drives volume

to:

Helps optimize

content for:

Drives volume

to:

Drives volume to:

Lifts response of:

Lifts response of:

Social & Mobile

Affiliate

Display

Landing Page

Retargeting

SEO/SEM

Direct Mail

>  In reality, each channel in the mix affects all others

>  This depicts the most significant dynamics

Common Cross Channel Dynamics

Page 13: Digital Marketing Strategies for Financial Services

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>  The correlation between search and display has been statistically demonstrated often

>  The challenge to is identify the optimal allocation between the channels to achieve the lowest average cost-per-action

Actual campaign data from a financial services client showing search volume decreasing as display impressions decrease

Cross Channel Example Dynamic Display Impacts Search

Page 14: Digital Marketing Strategies for Financial Services

Cross Channel Example Dynamic Display Impacts DM

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MaxPoint Impression Delivery

MaxPoint Impression Delivery

Online Account Applications

Online Account Applications

Most Impressions Medium Impressions Fewest Impressions Digital Zips with 1+ Online Applications During Campaign

New Control has recently been successful combining display and DM to increase response and lower overall CTA

>  50% lift in response rate over DM alone –  Neighborhoods that received display ads in addition

to DM against neighborhoods that only received DM

>  Overall, the display campaign had an estimated 2.83x ROI and incremental return on DM investment of 1.83x

Page 15: Digital Marketing Strategies for Financial Services

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SEM Data helps optimize…

…DM creative

>  Message test using insights from SEM data lifted response rate 23% over control

Cross Channel Example Dynamic SEM Informs Direct Mail

Page 16: Digital Marketing Strategies for Financial Services

Common Attribution Models

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First & Last

First Touch Last Touch

Algorithmic Decay

The challenge is that these are theoretical attributions that don’t account for

channel or creative differences

Page 17: Digital Marketing Strategies for Financial Services

We recommend a reactive algorithmic approach that measures the relative impact of each ad exposure in market in order to assign a weighted credit to that particular exposure

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Page 18: Digital Marketing Strategies for Financial Services

How Attribution Works

•  Using a combination of in-market measurement and modeling, we can effectively and accurately attribute fractional credit for each conversion

OLM Display Impression #1

OLM Display Impression #2

SR Display Impression #1

Search Impression #1

CR x CTA x + + + =

OLM Display Impression #1

SR Display Impression #1

Search Impression #1

CR y CTA y + + =

OLM Display Impression #1

OLM Display Impression #2

Search Impression #1

CR z CTA z + + =

User Group A

User Group B

User Group C

By analyzing the differences between all of the in-market touchpoint paths that result in a conversion, we can deduce the relative impact of each individual impression and creative unit on conversion rate and CTA, and thereby assign the appropriate credit.

*Simple example for illustrative purposes only; ultimately there will be as many user groups as there are unique touchpoint paths

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Mix  1  Scale:  A  

Cost-­‐Per-­‐Conversion:  Y  

Optimizing the DR Mix

>  A portfolio management approach defrays risk and achieves maximum results

>  Scale and Cost-Per-Conversion are balanced

>  Optimizing the mix is achieved through testing, sufficient data, and analytics

Mix  2  Scale:  B  

Cost-­‐Per-­‐Conversion:  Z  

Page 20: Digital Marketing Strategies for Financial Services

Attribution Modeling Technology Visual IQ Example

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Analyzes sales by channel

over time

Then uses attribution modeling (not last action), to develop a recommended allocation of spend across channels that maximizes ROI

Page 21: Digital Marketing Strategies for Financial Services

3 Key Digital Marketing Strategies

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•  Multi-Channel Attribution and Attribution Modeling

•  Retargeting 2.0

•  Responsive Design for Mobile Optimization

Page 22: Digital Marketing Strategies for Financial Services

#2: Retargeting 2.0 – CRM Retargeting

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CRM  Database  

Online targeting of customers in an offline CRM database

Page 23: Digital Marketing Strategies for Financial Services

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#2: CRM Retargeting – How It Works

Cardholders in the mail file are served display ads – potentially including

downloadable coupons

IP addresses/cookies corresponding to

matched cardholders are identified

Mail file is passed to CRM Targeting

platform provider

Physical  address    123.123.123.123  

Physical  address    12.4.560.275  

Physical  address    356.5.10.153  

Physical  address    192.168.1.132  

CRM Database

Page 24: Digital Marketing Strategies for Financial Services

#2: CRM Retargeting Benefits

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>  True 1-1 targeting of of customers

>  Offers can be identical to ones cardholder would receive through DM channel

>  Can be used as a stand-alone alternative delivery method to lower program costs, or as a DM reinforcement to increase redemption and spend levels

>  Integrates with leading digital media platforms for complete flexibility of media plan

>  Spongecell ad units provide robust functionality without rich media ad serving costs

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•  Search Retargeting enables us to retarget users with display advertising based on the content of their internet searches

•  This strategy enables us to capitalize on the targeting accuracy of search engine marketing (SEM) without the character limit restrictions of traditional search ad units

A prospect searches for “Playstation Credit Card” on Google Later, they are served an ad for the Playstation Card

USER A" USER A"

#2: Retargeting 2.0 – Search Retargeting

Page 26: Digital Marketing Strategies for Financial Services

3 Key Digital Marketing Strategies

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•  Multi-Channel Attribution and Attribution Modeling

•  Retargeting 2.0

•  Responsive Design for Mobile Optimization

Page 27: Digital Marketing Strategies for Financial Services

#3: Responsive Design

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> Single source of HTML code that is built to adapt or respond to the display environment, screen size, etc.

Website viewed on a desktop

Website viewed on a mobile device

Page 28: Digital Marketing Strategies for Financial Services

More than 1 in 2 Americans already have a smartphone …

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Page 29: Digital Marketing Strategies for Financial Services

… iPhone Growing 5X Faster Than the Internet Did

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Page 30: Digital Marketing Strategies for Financial Services

… iPad Growing 3X Faster Than iPhone did

30   Sources: KPCB and Apple, as of CQ1:12 (8 quarters post iPad launch).

Page 31: Digital Marketing Strategies for Financial Services

… Android Growing 5x Faster Than iPhone did

31   Sources: KPCB, Gartner, Morgan Stanley Research, as of Q4:11

Page 32: Digital Marketing Strategies for Financial Services

#3: Responsive Design

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>  57% of people open email on mobile devices

>  Only 3% will view the same email again later

>  To make sure customers see the email or landing page that’s suited to their device, responsive design adjusts depending on the width of the screen -  Landing pages -  Websites

When should Responsive Design be used? >  Any page linked to from email has a good chance

of coming from mobile

>  Any URL mentioned in out-of-home ad may also come from mobile

Benefits include: >  Emails and landing pages work best for user

regardless of where they read it

Source: ClickZ and Litmus

Page 33: Digital Marketing Strategies for Financial Services

Digital Marketing Strategy Bonus

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•  Personalized Video

Page 34: Digital Marketing Strategies for Financial Services

Video Consumption is Growing

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Page 35: Digital Marketing Strategies for Financial Services

Video Ad Buys Are Growing

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Page 36: Digital Marketing Strategies for Financial Services

APRIL  MAY  AUGUST  OCTOBER  

SMARTVIDEO: EFFECTIVE ENGAGMENT THROUGH THE CUSTOMER LIFECYCLE