Relevant Engagement

The Rising Tide is Here - “Seismic” Shift in Marketing—Real-Time ROI Marketing

In 1997 when I first started working with AOL the potential to create a clearer view of what we (my client and agency) get for our dollar (ROI) was exciting stuff.  As a Media Director implementing traditional media, producing definitive results through assumptive practices was the best we had - and it was geetting old.

A change was coming and that is when I started prepping my department, executive management, account service and clients that transparency and closed looped engagement platforms were coming.  At the time digital didn't have the critical mass to command attention as a player BUT it did provide an environment for learning and we should seize on the opportunity and learn so that in the future we could apply our insight and experience to all forms of communication.

Today I read an article that rekindled that old flame. The article, "Yield Management: What Advertisers Can Learn From the Airlines" was on CMO.com republished from and article out of NielsenWire,  and it discussed the concept Yield Management and Marketing models - specifically Airlines and TV spots. 

The overarching message is change is here and here is a framework to help you understand and get started.

The following is directly from the article:

What's Required to Make it Work

1. Digital – Digital is more easily measurable and therefore more usable in a yield management model.
2. Cross-Media Measurement – Marketers must be able to measure viewership across TV, web and mobile to optimize media allocations.
3. New Measurement Tools – Marketers must be able to target viewers based on any segmentation dimension, buy media based on ad effectiveness by program, and measure ROI.
4. Real Time Data – All three of the above are needed in real time – 24/7/365.
5. Accountability – Advertisers must demand greater accountability for every media dollar spent.

Puzzle Pieces and Making it Work

1. Target the Right Audience – Targeting will move from simple demographics to more sophisticated psychographic and behavioral targeting. And Marketers will be able to drive these segmentation schemes thru most of their marketing contact points.
2. Identify the Right Program – Viewership will be supplemented with TV Program Engagement data. Marketers will become more sophisticated in identifying high engagement / high ad recall programs to improve their ad recall effectiveness.
3. Match the Right Ad – Marketers will care about and measure the impact of program fit with their brands. This will enable them to match ads to programs based on purchase intent data, for optimal impact.
4. At the Right Time – Media planning will move from an annual, exception-driven exercise to a real-time, algorithm driven process, fueled by continuously updated effectiveness metrics.

Change is needed.  I'm excited it is here.  I'm excited to see others say, "This is the coming “seismic” shift in Marketing—real-time ROI Marketing. Those who don’t get on board will be grounded in the new economy."  News Flash - been here for sometime digitally - can you say PPC (for starters).  I used to get harassed endlessly for taking such a conclusive stance - I sometimes have the tendency to be a blunt instrument. 

Regardless of all that, greater transparency and accountability are coming (and/or are here) and I'm excited to see that the dialogue is now on the table and part of the conversation: in practice not just theory.

GOT IT!

When mapping out your communication program consider two things:

1. Content
2. Context

Content is required to inform your customer

Context creates a view of the information that makes the communication worth their precious time.  You want to be passionate about your product or service through a clear and persuasive exchange that answers the all important customer questions, "what's in it for me?"

Your goal, as always, is to create a relevant engagement.

Success Measure Methods

I'm constantly being asked by clients about appropriate measures for their digital efforts.

A simple framework we like to follow always has the following core elements:

1. Identify the business problem
2. Identify the specific user behavior
3. Identify the measure associated to that behavior
4. Identify and associate a value to that measure
5. Calculate the financial impact of that effort

This is in a simplistic presentation format but the approach works. 

From the looks of some recent research, basic measures applied to their marketing efforts seem to be the benchmark for measurement.

SOS: Shiny Object Syndrome is A Constant Battle

A New World Trend that we all have to wrestle with is SOS.  Sooner or later you too will be a victim of this malady.

In this business, I feel it is a good thing to take in the daily torrent of the information in "moderation."  You'll live longer, be happier and will not end up curled in a ball in your office crying because you feel out of touch with what is going on in the new world of marketing.

The good news is, the basics still seem to carry a lot of weight with your customers.

From research just published by King Fish Media, a solid Website is a must.  Second, an engagement architecture to manage the relationships with your customers within your marketing eco-system is the next element.  If you were to stop right there with those two activities (which is a lot of work) you're doing great.

Remember, to keep your sanity, keep your thinking and focus simple.  SOS in moderation.  Apply relevant elements you find on your journey to your marketing efforts and you should have a long and fruitful career.

Pineapple Bubblegum Anyone?

We're finding clients and potential customers are sometimes having trouble understanding how social media can help with their overall marketing strategy.

We decided to be proactive and create a small video highlighting some of the possibilities......ever think about pineapple flavored gum?

Signal Attenuation

Basic marketing tenet: companies need to make money and they need to listen to their customers.  How to make it all work together?

It is about Signal Attenuation: gathering all of the discussions, extracting value, quickly reducing the noise and getting to the valuable discussions.  The faster this information can get back into the the feedback management loop the greater chance the corporation has for extended success.

Social CRM - Harder Than Social Media? Maybe, Maybe Not

Social CRM: How do you plan for something more complex than Social Media?

There is a huge body of opinions today that believe there are still no real viable, clear or tangible at this point in time.

Maybe, maybe not.  I do feel that success starts with a good understanding of the business objective.  From that objective you can build a framework of issues, strategies and tactics.  Basically you develop a direction and start to catalog your options.  Based on the value and need of the business and the customer, your resources and technology investments will start to clearly present themselves.  You mitigate risk when you apply a thoughtful approach to solving a very complex issue. 

Analytical approaches that can help with your efforts:

1. Understanding the “value-to-cost” ratio (also referred to as NPV or ROI) of the project/investment or initiative.
2. Secondly, determine the volatility of the investment: make an assessment of the risk/uncertainty involved in combination with how long you can afford not to make a decision.

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Potential Reach is a Risky Sales Approach

Can't take credit for this either.  However I agree 100% with the thinking. 

Potential Reach

Nearly every video publisher, network, blogger and journalist I talk to believes this metric is misleading. But, even more than the confusion it causes, I believe the potential reach metric is hurting all players in the video business for the following reasons:

1.    "Potential reach" provides no meaningful representation of reach, access to inventory or actual business traction.  In fact, if the same methodology were applied to other sectors, any (paying) company has the potential to reach 100 million+ users in email, display, outdoor, television and radio.  All that is required to achieve this "potential reach" validation from the most trusted name in measurement is to provide a list of properties a network "works with" -- literally, that's it.

2.    "Potential reach" is confusing advertisers, agencies, clients and the press.  Yes, the people who buy video advertising do not understand the metric and don't understand the difference between potential reach and actual reach.  Why?  Because vendors use the inflated potential reach numbers as a sales tool.  This inventory Ponzi scheme is a failed strategy. Eventually, it will be uncovered, but not before all industry players have been negatively impacted.

3.     "Potential reach" is tarnishing the brand of the leading Internet measurement company.  ComScore is clearly in the forefront of video measurement, and it's in a position to champion accurate measurement.  Only two other measurement alternatives exist -- Nielsen or Quantcast.  Nielsen has yet to commit to the online video category, which resulted in an incomplete solution, and Quantcast is now selling data collected from our ads to our competitors.  We need to have faith in comScore's measurement, as this ongoing issue of potential reach is beginning to break trust with key industry constituents.

4.    "Potential reach" is hurting the video companies that are doing well.  The metric blurs the distinction between the video companies that are doing well (those with large actual reach) and the companies that are new, small or faltering (those with minimal actual reach). This results in buyers failing to understand differentiation in the market. We are a nascent category and we should be promoting our success stories, not clouding them in confusion. 

Fundamentally, we deserve better measurement solutions in our industry and we must protect the collective, long-term trust within the agency and advertiser communities. Sacrificing long-term value for short-term profits may seem attractive if you are trying to hit your quarterly goal. However, I suggest we all travel a few blocks -- from Madison Avenue to Wall Street-- so we can remind ourselves of the brand damage that be done when we mislead key customers under the guise of short-term or quarterly planning.

Again the following were excerpts, you can find the full article here: Potential Reach' Is More Than Potentially Misleading by Tod Sacerdoti , Monday, October 5, 2009

Hybridized Content: Message is the Medium

I read a terrific article today discussing what the new Apple Tablet means to the news industry.

The implications, in my opinion, of the tablet and the introduction of hybridized content will have a larger impact than just the news industry. 

The following was the quote on Gizmodo that prompted the article: "Apple Tablet To Redefine Newspapers, Textbooks and Magazines": The eventual goal is to have publishers create hybridized content that draws from audio, video, interactive graphics in books, magazines and newspapers, where paper layouts would be static. And with release dates for Microsoft's Courier set to be quite far away and Kindle stuck with relatively static e-ink, it appears that Apple is moving towards a pole position in distribution of this next-generation print content. First, it'll get its feet wet with more basic re-purposing of the stuff found on dead trees today.

I'd wish I could take credit for the following excerpts from What My Apple Tablet Means for News, I can't.  I can however state that the concepts covered below are concepts discussed with my closest peers for years - the enlightened crew.

Salient Points

• New technology creates new ways to tell stories. That's the exciting thing. Not the tablet itself, but what it means for news, for entertainment, for literature. Gasp. Geddit? Is the light going off yet?
• This is what Anton Chekhov meant when he said that the medium is the message. This is why the Tablet is so profound.
• Look what happened when TV was invented. In the early days, they just put radio stars on the TV. They did variety shows. Remember Milton Berle? If you do, that's nice, but you won't need to worry about what's coming next on the Internet. Thing is, at first TV was just radio with a camera. But eventually people came along who invented a new language, a new way of telling stories, one that was unique to the medium. So far with digital media we're about where TV was in 1950. We've basically just taken stuff from the old worlds of TV and print and ported it to a digital delivery mechanism. But now we're at the point where things are going to take off. The Tablet is part of that.

• Content guys are such idiots that they still can't create anything that makes it worth putting the Tablet into the world. It's stunning how few of the big guys in publishing actually understand this. We've invited them in for meetings, and while we're talking we sort of give them a little quiz, in the form of a very simple question: Where do you think publishing is going? Most of them can't see anything other than what they've done in the past. To them this is all just another blip, a little shift in their business, like going from black-and-white newspapers to color, or going from broadsheet to tabloid. But that's not it at all. We're talking about an entirely new way to convey information, one that incorporates dynamic elements (audio, video) with static elements (text, photos) plus the ability for the audience to become content creators, not just content consumers.
• The funny thing is that the publishing guys still refer to themselves the "creative" side of the business -- even though they're probably the least creative people I've ever met. The irony is, they're the ones holding everything back, because they don't have any vision for what the future should look like. Honestly, you should see them sitting there in meetings, their mouths hanging open. Sooo creative. Yeah. Worse yet, they still have loads of attitude. They really think it's unfair that the tech geeks keep reaping most of the rewards from digital media.
• "Content is king," they keep saying, and I'm like, Yeah, but not *your* content. Your content is lame and stale. You're selling a product that hasn't changed since the 1950s. Hell, since the 1850s, really. And what are the old media guys doing, when they should be out there reinventing their business? Why, they're talking to Congress and trying to get a bailout for newspapers. Good Lord! That's like organizing a bailout for black-and-white TV. Friends, we don't need to bail out newspapers. We need to hasten their demise. Let the weak ones die. Let the strong ones go bankrupt and restructure their business.
• The good news is, we're heading toward a period of incredible creativity in news and entertainment, with a new medium that is far superior to ink on paper.
• The bad news, at least from my perspective, is that I'll be selling a piece of hardware whose success depends on whether the content guys can dream up cool new things to do with this piece of hardware. And, as we've already established, most of them are bozos.
• We need to reinvent the way we tell stories. My guess is that the truly revolutionary content is not going to come from the old-guard publishers. It's going to come from new guys, kids who have grown up digital. This notion of mashing together elements comes naturally to them.

As a marketer I'm beyond words about the concepts and philosophy tossed out within this article.  This is very real and it will absolutely alter our business - client and agency side.  

* I need to go on the record and state I do not read The Huffington Post at all.  This article was sent to me by one of my left wing liberal friends.  In this particular case I'm glad he sent me the article.