Optimization puts the “iterative” in Iterative Marketing. If done correctly, their impact compounds far into the future, resulting in great gains for your marketing programs. Learn more about how optimization can result in continuous improvement for your marketing and help connect the dots to ROI.
Episode Show Notes
Introduction and Marketing Optimization Defined
(0:00 – 1:20) Introduction: Hosts Steve Robinson and Elizabeth Earin welcome viewers to the Iterative Marketing podcast. They introduce today’s subject which is Marketing Optimization, an essential aspect of the Iterative Marketing process.
(1:20 – 2:13) Marketing Optimization Defined: Marketing optimization is making incremental improvements over time. It is implementing regular changes to improve marketing, emphasizing data and experimentation to inform what these changes should be.
(2:13 – 5:06) The Why of Optimization: First, optimization capitalizes on opportunities. Second, it provides compounding improvements. Future optimizations are made on top of past optimizations to make amazing gains in your program. Finally, reporting on optimization allows you to explain where marketing efforts are going. Optimization shows that marketers are adding value to the organization.
(5:06 – 7:04) How Optimization is Different: Holistic marketing optimization is more than just A/B testing or conversion rate optimization. While optimization should include those things, holistic optimization should also measure the quality of conversions. These optimization insights should also be portable across mediums.
Four Components for Effective Optimization
(7:04 – 12:32) The Four Must-Haves For Successful Optimization: First, the program must be sustainable and repeatable. This is a fundamental truth of Iterative Marketing. Second, start small. By limiting the scope of your initial optimization it will be easier to implement and measure. Third, make a plan for measurement. Determine what the KPIs are and how you will measure them early in the process. Finally, identify the resources needed for both analysis and implementation.
The Key Areas for Optimization
(13:36 -14:08) Where to Implement Optimization: Optimization can happen in two key areas: creative and content, and the channels of delivery.
(14:08 – 21:20) Optimizing Creative and Content: Creative and content should resonate with your audience and must be measured to determine success. The KPIs for content vary depending on the goal: evoking action, informing or persuading, and generating awareness. For evoking action, the KPI should get as close to the money as possible. It should measure both the quantity and quality of leads and conversions. For informing or persuading, measure the time to close or close rate. For generating awareness, optimization and measurement is almost impossible as it is hard to isolate your brand. The key for all optimization is to set up controlled experiments. More information on building marketing experimentation will be discussed in a future podcast.
(21:20 – 26:11) Optimizing Channels of Delivery: Direct response advertising is the primary avenue for channel optimization. By measuring the quality and quantity of conversions you can determine if you are getting the right people at the right time. Once you have identified the channels that evoke strong responses, you can also utilize the channel for brand advertising. Measuring the cost for each action or conversion is an important metric to measure in this process. This is measured by the cost invested in a given channel divided by the number of actions taken. To implement channel optimization, compare ad spaces and targeting methods. Additionally, consider the format and cost of your ads. Ultimately, you must determine which channel will produce the most value.
(26:11 – 28:10) Consider the Opportunity Cost: Once you have determined the superior content and superior channel, be prepared to let go of content and channels that are not performing. Budgets are not unlimited and while it is hard to let go of a channel that may still have some audience, the opportunity cost to stay on that channel may mean losing out on another channel that performs better.
(28:10 – 29:36) Conclusion: Join the Iterative Marketing podcast next week for a deep dive into experimentation. Thank you for joining us!
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Iterative Marketing is a part of the Brilliant Metrics organization. If you would like more information on the marketing services provided by the expert team at Brilliant Metrics, reach out today for a free discovery call.
The Iterative Marketing Podcast, a production of Brilliant Metrics, ran from February 2016 to September 2017. Music by SeaStock Audio.