Posts Tagged ‘Marketing’

With marketing departments typically focusing on P&L / ROI of ad campaigns and product development on product quality, product feature enhancements / performance and customer UX, it’s easy for the two business areas to be fragmented which could make the end goal harder to reach.

Ironically although the individual department goals for both are normally so separate and different, the most common problems they face can sometimes be solved by the other eg. Acquisition marketing unable to increase incremental volume because the CPA / ROI / ARPU of the additional media spend doesn’t look healthy, yet fixing some bugs around the product feature in question, a feature enhancement or a new product release is likely to contribute to the solution that allows a raft of new customers through the door efficiently. Vice versa, a new shiny product or feature where the target audience is so niche that acquisition marketing efficiency / volume is poor or it’s unlikely existing customers will benefit, then it’ll be an uphill struggle to make the product viable.

Fortunately the majority of brands have both of these areas in-house so it does make optimising the relationships and responsibilities easier. Naturally one area cannot exist without the other even when you look at brands like Google and Facebook who have groundbreaking products, yet still require nicely crafted ad campaigns to generate incremental revenue.

Product developers don’t bite and marketers don’t just care about ad campaign performance, so close collaboration which is vital can be achieved by letting down a shield and discussing problems openly and bravely, so that multiple solutions can be discussed and you never know, the problem you thought was a tough problem to solve, may not be so tough anymore.

Again, close collaboration is key and potentially another way of aiding / fast tracking an improved relationship is by recruiting a marketer or two into the product development arena or vice versa.

The two departments working collaboratively to solve problems could lead to some spectacular chemistry.

It’s powerful, flexible, customisable, saves thousands of man hours, provides valuable customer insights / behaviour and most importantly ensures that you get a healthy ROI if used in the right way.

Meet The Brain: The Brain is MediaMath’s proprietary algorithm and ingests data (60 billion opportunities everyday to be exact) and decisions against that data.

Their algorithm’s left-brain and right-brain work together to analyse large pools of impressions, looking at dozens of user and media variables, to determine which impressions will best meet an advertiser’s goal.The Brain values each impression based on its likelihood of driving an action, and bids accordingly.

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Ever wondered what the digital agency market looks like from space?

Well Neil’s Recruitment did and as a result they built the below infographic:

”Digital

Not enough

Scenario: Revenue has been declining for years and the CEO is pointing the finger at acquisition marketing to grow business. Planners are very familiar with this scenario.

I wrote an article recently that all programmatic buying should be in-house, but if a brand is expecting that this alone will solve a decline in revenue, then they need to wake up and smell the coffee.

With ad spend over £15bn / year in the UK alone, this brings a lot of hungry salesman to your door insisting that their product is the best and that you should invest, which puts pressure on CEO’s and CMO’s to potentially waste a lot of money testing out the same option over and over again or testing out an option which only has a 1% chance of working to key KPIs. Also accepting a post-view window across their display buys as default because they’ve been constantly told that ‘the flashy banners are driving all organics’ is something which gets banded around often. With that amount of ad spend floating about also brings an opportunity for large sums of money to change hands under desks without the brand (if it’s an agency) or without the investors finding out.

Just because there is more hype than ever when it comes to advertising eg. programmatic buying, DSP’s and trading desks, it doesn’t mean that focus and investment should divert away from other core business areas. Many CEO’s feel that obsessing about acquisition marketing is the way forward because of the simplicity of delivering an ad which a potential customer can click on in conjunction with hundreds of salesman saying that this is the answer, but for those who are keen to work backwards – finding out why high value customers are leaving feeding this back into dev and marketing, developing products across all devices, looking at CRM and key promotions are the ones who will survive and therefore be able to afford a significantly higher CPA than competitors, giving the trading desk plenty of ad options which competitors cannot afford to buy.

If all of the below areas work together to achieve a common goal then the long term consequence of this will be shown in bottom line results and staff retention rates in a positive way:

Capture

It was really nice to read Marco Bertozzi’s article the other day where he used a personal example to demonstrate that spending money on advertising isn’t the only way of generating revenue and growth.

Listen

You have a eureka moment and you start building out the infrastructure for product, website and staff.

The product flies off the shelves and life is good. Customers are happy, customers are spending on your site and you’re living the dream.

As the business expands it produces more risk to ‘issues’ across key business areas which effect customers such as product stability, CRM / customer service and product development especially when linked to different platforms. As time goes on, competitors pop up trying to attack your weak points offering a viable alternative and the ideal solution would be to have had long term business strategies in place to cover all areas which could be at risk of those ‘issues’ appearing, resulting in customers not having a good reason to go anywhere else.

Many businesses only have short term strategies which apply temporary fixes and patches resulting in those ‘issues’ appearing in full view to customers.

The 21st century has brought customer opinions and voices which are not only expressed across the globe but also across all channels especially social media and forums instantly within seconds to millions, so no longer does a customer have to write a letter to complain or stay on the phone for hours, customers are now in the driving seat not the brand.

Those businesses who closely monitor, analyse and engage with their customer feedback especially their high value customers will avoid getting annihilated, emmbaresed and shown up in front of millions as well as having to pay high acquisition costs to convince new customers that they have changed.

Brands need to stop thinking that they know better and start believing the classic saying that ‘the customer is always right’. Yes, not every single customer is right and you don’t need to add every piece of feedback to the business agenda, but apply logic to constructive feedback and where a clear trend appears apply it to the relevant business area.

Not only are your high value customers willing to give you an abundance of ideas on how to improve, but you only have to give a tiny gift away to get vital feedback to improve business, which in turn once implemented will give you an abundance of organic new customers compared to the expense of having to use ad budget to acquire those new customers.

On a similar note, it’s also not acceptable to put a product on the shelf when based on customer feedback post launch is clealy unfinished. A brand should never be in this situation, especially with so many tools available which would give you the feedback you need in order to build the ultimate product which meets demand prior to launch.

So when you’re lying on the beach seeing the cash flow, you need to remember that if you don’t listen and look after your customers, you can lose them significantly quicker and in greater volume than you can aquire new ones and that is certainly not what investors like to see.

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DMP’s 2.0

Posted: Jul 21, 2013 in Business, Data, Marketing
Tags: , , ,

Puzzle

DMP’s have been around for decades but the acronym only started getting banded around the ad industry recently.

DMP’s up until recently pretty much included only back end data which was overlayed with a visualisation tool such as QlikView or Omniscope. Typically media planner buyers and marketing execs used to use adservers to pull off basic performence reports as all costs were flat ie. Not biddable and held within the adserver.

Since programmatic buying became more popular, media buyers have been spending a significant amount of time pulling data together from different sources just to see how campaigns are performing – combining bid tool, adserver and back end data manually.

Programmatic media buyers should be spending as much time as possible setting up strategies and optimising campaigns rather than spending days merging data or reconciling costs.

Clearly things needed to change and they have started to, resulting in programmatic buyers having to work closer than ever to the database team who manages the DMP.

Due to this change, the volume of work load and briefs to deal with data has tripled over night for data teams. To deal with the new data demand from marketing, it’s essential to have incremental resource to deal with the additional work because otherwise it will either take years to get done or get done in a shoddy way.

Allowing marketing the extra data resource to support a data led marketing strategy is essential for business success. A DMP should now include log level data updated in real time / within three hours as standard including:

  • Back end data showing cohort conversion and revenue data
  • Paid Search bid tool spend and impression / click data
  • Social Media bid tool and fan page spend and impression / click data
  • Display bid tool spend and impression / click data
  • Banner inview data
  • CRM email impression / click data
  • Affiliate spend and impression / click data
  • Natural Search impression / click data with any flat agency fee attached
  • Mobile spend and click data
  • TV spots and any other offline channel activity with the relevant spend and volumes attached
  • Adserver data incl. adserving fee making all channel spends fully loaded
  • Site traffic data
  • Weather data
  • Competitor exposure data
  • Site / product issue data

All of this data is essential for knowing exactly what is happening across the business and why. With a click of a button marketing should be able to view real time campaign performance (CPA and projected ROI) across all campaigns and channels as well as impact of what branding, weather, competitor activity and any site / product downtime has on revenue / acquisitions. Also user journey analysis from first touch point to last and the key five attribution models should be built out from the data which all take into account CRM.

Without this, marketing cannot be expected to grow the business profitably.

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As digital media skills become more valuable to the industry and there’s a huge lack of them in certain areas, some grads in their first job in marketing / advertising are demanding an extra £20k pay rise in the first 18 months of starting work.

This causes many issues especially ad agencies when it comes to managing retention. iProspect are a good example of how agencies have had to adapt by adopting a quarterly pay review rather than annual.

With these ludicrous demands at such an early stage in their career, minimal work experience and a lack of key skills which is required to be able to think for themselves, have the confidence or knowledge to improve campaign performance independently and generally still at the stage where they’re sitting at their desk wondering ‘what to do next’ is causing a level of ungratefulness and sense that there could be greater long term benefit / ROI to businesses by scrapping a grad only policy and accepting school leavers as a priority in some cases.

The right school leaver may not be able to string along words as grammatically correct and might require a calculator more often than grads, but what they do bring to the table is an abundance of common sense, drive, passion for their job, ability to get things done in a proactive way with less moaning and more doing , all of which are only normally naturally gained when working full time from the age of 16-18.

Let’s face it, we all know that you don’t need to be a rocket science to work in marketing / advertising and for those grads who think that all that’s required in our industry to get significant auto payrises is a degree and to turn up for work, really do need to wake up and smell the coffee because the industry is a fairly close nit industry and those who put the effort in will shine and those who expect an easy ride will be quickly identified.

Just because a degree is missing from a CV, employers should think twice before discounting the applicant.

Neil’s recruitment blog touches on school leavers in digital media nicely.

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Criteo have certainly become popular over the past few years with marketers. This is mainly due to them being sold into a no hassle site remarketing solution paying on a low risk CPC basis.

What a lot of marketers and CEOs don’t know is that by using a managed site retargeting service like Criteo is not only lazy and inefficient, but it it’s also opening the business to data leakage which could have a damaging effect.

Let’s break those three key points down further:

1. Inefficient way of spending money – Criteo typically charge c 50p CPC yet using a DSP eg. MediaMath and Adacado together, the eCPC rate would be c 5p. Everything works back to an eCPM for display, so on a CTR of 1.5% you’re paying £5 CPM for the managed service via Criteo and only c 70p CPM for the media and dynamic creative service both on a self-service basis. Not only that, 1.5% is quite conservative for a dynamic remarketing CTR so as it goes up, so does Criteo’s eCPM.

2. Lazy – it’s a lot easier to send a monthly invoice to accounts to pay but it does take a bit more intelligence, will power and proactiveness to get a self-service DSP on board and dynamic creative supplier. Display CRM would only be part of someone’s job and they’d typically apply a tight frequency cap and low CPM at the top of the funnel, but as you go lower in the funnel the frequency cap should be increased alongside the CPM as the users become more valuable to your business.

3. Data leakage – allowing a third party to ‘manage’ your data for you is always risky that it could fall in the wrong hands eg. a competitor or data exchange.

Something I haven’t mentioned is scale and volume, although Criteo do have a few exclusive publishers, this doesn’t match to any degree the sheer scale which a DSP such as MediaMath or DoubleClick Bid Manager bring to the table.

satisfied_customers

No matter how much marketing you deliver, whether it’s billions of banners on the most premium sites in the world or you’re top of key generics consistently for Google, unless you have a stable product offering which customers genuinely embrace, then your brand has a fairly bleak future.

Historically you could spend your way out of a crisis, but now if your site crashes often, you hide key T&Cs, mis-sell promotions, have a complex user journey, product not available on multiple devices, then in a few years time your brand value will show a clear decline which would eventually kill your business unless you adapt fast.

I think the below video demonstrates the future in a fantastic way and how consumers will shape products, businesses and communication. The good thing about the future is that it will kill a lot of cow boys who are short sited and have no long term business strategy.

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Using a DSP on a self service basis lets you set your own rules and strategy structure therefore site remarketing strategies should be completely separate from prospecting. It’s essential to separate them as the KPIs and strategy between prospecting and CRM are so different (similar to brand and generic search) – it’s a classic way of how a lot of ad networks used to over represent the real prospecting display results by including remarketing strategies within prospecting campaign results.

From remarketing site visitors who have bounced, to remarketing high value customers, the set-up should be bespoke to the segment. The further you get in the user journey, the less cookies there will be allowing you to be able to afford to be more aggressive as there’s less risk of budget getting out of control, also the further your customers get in the journey, the more you want to keep them (as their value increases):

Let’s start with remarketing people who have visited but not registered their details – a tight frequency should be implemented and reasonably low CPM.

Dependent on your user journey you should then split out your remarketing strategies by segment (which should all be list in your cookie CRM database) eg. Age, gender, country, product, user level – as the segment becomes more valuable to your business, the frequency cap should be loosened and CPM increased.

As well as the media strategies, the likes of creative and ongoing promotions are crucial for success in this area – it’s not going to help serving your high value customers banners telling them to sign up again or promote an out of date offer. A reminder of what’s currently available, what’s just launched, cross sell, RAF, special offers and what’s coming soon are the basics.

Remember, the harder you work on CRM and generally looking after your customers to avoid them leaving, the more you can afford to pay for new customers which has a positive effect on the incremental volume you can drive (referring to the classic volume price curve).

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