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Media and Communications

Account-Based Advertising Strategy: Tying Advertising Spend to Business Outcomes

Account-Based Advertising Strategy: Tying Advertising Spend to Business Outcomes

[MUSIC PLAYING] JESSICA FEWLESS: So here we are. I’m joined by our VP of Demand
Generation, Lisa Ames, who’s going to talk a little bit
about her advertising strategy. Hi, Lisa. How do you decide how
much of your budget goes towards advertising, and
how do you tie it to revenue at the end of the day? LISA AMES: Well,
you’re right, Jessica. Ad spend is a big consideration
for us in planning. And believe it or not, we
actually pay for our own media even though we use our own
solutions, which many people might not understand. So it really is something
I have to look at closely. So like all
advertisers, I’m looking for both scale and precision. Yes, I want to drive as much
traffic to my website as I can, but I want to make sure
I’m only attracting the accounts that really matter
for my target account list. So that’s where precision
becomes critical. And now as technology has
advanced I can get really fancy and I can use intent data to
target the buying committee within those target accounts. So these are the folks that are
actually going to buy from me, and I know they’re going to
buy because of their behavior. And I can monitor that
and what they’re doing all the way across the web. But the proof is always
in the pudding, isn’t it? So I’ll confess to
you, Jessica, that I had my doubts when I first
joined Demandbase I’m like, yeah, it’s great. We’re using our own products. We’re spending all this
money on advertising. But what would happen if
we stopped advertising? Why don’t we do a test guys? And my team said
what do you mean? And I said, well, let’s stop
advertising to a segment and see if we hurt our business. Do you think we will? So even though they told
me it was a terrible idea, we decided to test it anyway. And sure enough, we
hurt our business. So we pulled out 500 accounts
from our target account list of about 3,000, decided
to stop advertising to them for a
quarter, and then we continued advertising to the
other 2,500 or so on the list. At the end of the quarter, we
measured pipeline generation against both
segments, and we found that the segment that we
kept advertising to we were able to generate pipeline
at a rate of 45% greater than the segment we
stopped advertising to. So this test, this data
gave me all the confidence I need to continue investing
in an always on ad strategy and not just at the top of
the funnel to reach my target accounts, but all the
way through to pipeline, to closed business, and
throughout the customer lifecycle. JESSICA FEWLESS: Thanks, Lisa. It must be really gratifying
to know that advertising is effective all the way
throughout the buyer’s journey and even the
customer lifecycle. Cheers to you, Lisa. Thank you. [MUSIC PLAYING]

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