Interview with Adam Goldberg,
Chief Innovation Officer & Co-Founder, Clearsaleing
When media attribution company, Clearsaleing’s Co-Founder came out to Australia last year we asked him his thought on ROI measurement, his stint at Google HQ and how you can make a better impact to your search marketing….
1. What are new imperatives for online marketing, particularly within attribution and ROI measurement?
New imperatives in terms of attribution and ROI measurement are to work towards capturing the impact offline advertising has online and vice-versa. In order to do this the world of online tracking and measurement are meeting the worlds of media mix modelling and statistics, specifically Bayesian Statistics and regression models. As Google and companies invest more into TV, print, and radio the market has more access to data to tie audiences together to understand how someone watching TV may be influenced to go online for example.
2. What do you mean by ‘impact’ when you talk about “measuring the impact of display, search, email and social media” do you mean measurement, and if so how do you propose this?
Impact meaning does the ad or marketing vehicle achieve the desired effect. At the end of the day all marketing efforts are directly or indirectly about generating profit. So ultimately what we want to measure is an ad’s impact it has on the bottom line. Impact can occur at the beginning of the buying cycle, in the middle stages and of course the final stage. Marketers today are still only focusing on impact as can be measure by occurring last in the buying cycle. The reality is impact occurs throughout the buying process. For marketers that can measure impact in any stage they stand to gain a healthier bottom line because they will be making ad budget and optimisation decisions with a much more accurate data set. The more accurate the data, the more accurate the decisions.
3. What did you do at Google and what has been your main achievement to date?
I started Google’s inside sales organisation in 2003 in NYC. At the time Google sold their product directly to only the biggest spenders and the online do-it-yourself AdWords system satisfied everyone else. The inside sales team was created to proactively sell to the mid-marketing which were companies willing to commit to spending $5000 per month or more. I grew that business unit from $0 in sales to $500 million at the time of my departure. I also developed a proprietary lead generation engine using Google’s search technology to find businesses we were not already working with, that had high-quality sites that sold products in which we had a lot of advertising inventory to sell them. This engine allowed sales people to focus on selling vs. finding leads and better insured they were calling the leads that could spend the most amount of money.
4. Why did you leave Google?
I didn’t have access to a profit metric at Google. I realised that the ROI we were providing was revenue on investment which is not Return. In order to get a return we would need to know a client’s cost of goods sold to compute a more accurate ROI.
I also realised that our lead generation clients were measuring media against a cost per lead metric which therefore assumes all leads are created equal. They were doing this because they had no method for tracking the online lead all the way through the sales process. If they could do that they would see that some leads might be more expensive but they are worth it based on the conversion rate, actual sales dollars, or both.
Lastly, I recognised that the majority of our clients conversions occurred from their branded terms. I couldn’t understand how our clients who were almost always unknown brands could find so much success with their branded terms. I knew something must have been done prior to the branded term being searched that introduced these businesses to potential customers. That’s when I wanted to track all the steps that led to conversion vs. the last step.
I took these ideas directly to Larry Paige who liked all of them, but said there is no way for Google to pull of number 1 and 2. The 3rd one is something Google is getting into today, but will most likely never want to show the effect of non-Google properties beyond the last click.
Based on these facts I decided to leave Google in 2006 and start ClearSaleing.
Adam is Co-Founder of Clearsaleing Inc, a US based organisation that specialises in Marketing Visability, Media Attribution, Data Visualisation and Automation