#QuoteOfTheDay – “Don’t confuse confidence with competence or education with experience”

June 11, 2012

A departure today… this is actually a quote I came up with many years ago. I bring it up because I just read a quote from Steve Jobs and thought it similar…

“A lot of people in our industry haven’t had very diverse experiences. So they don’t have enough dots to connect and they end up with very linear solutions without a broad perspective on the problem.”  

He is speaking to the second half of what I point to in my quote, and does an excellent job of describing the impact of a lack of experience… too few dots to connect, end up with very linear solutions. Frankly, I don’t really see myself as an intellect but secretly hope that people reflect on my interactions with them as being smart. Connecting dots, innovating outside of the normal bounds.

I’ve always found competent people with a wealth of experience to be a breath of fresh air. Recently, I had the great fortune of meeting a person who epitomizes this, oddly enough he also has a PhD from MIT… proving a limited number of great people also have confidence and education:-)


Practice what you preach in your #advertising? Google puts money on offline ad investments:-)

March 27, 2012

I get it, it makes total sense. To expand their market they need to find people who aren’t currently / frequently using their services… to capture competitive share they need to go where their competitive set hunts. But you have to agree that this is optically weird. At least heavy up on some display ads off of your core site, or mobile ads. Here’s the article, WSJ… http://on.wsj.com/HbF3t5… Google’s spending on traditional advertising grows four-fold to $213M.


Enterprise – has the word lost its’ meaning?

March 12, 2012

Yester-year I worked to connect large direct response retailers to their first ecommerce experience – integrating commerce and content systems into “enterprise resource planning” systems (ERP). While we hear less about ERP systems these days, the point of those solutions was that it really did connect all aspects of the business… finance, inventory, customer service, billing, and more.

Today, we use the word enterprise to describe something that we either want a VC to perk up and hear, or something that involves merging a few disparate things. I read a MediaPost article today, “Enterprise DMP Will Require Companies to Merge Data Silos“, and was reminded of this point.

While I thoroughly agree with the authors premise that data silos  are on their way out, I disagree that having a larger silo is substantively better. Or, that it represents the “enterprise”. Combining more digital data for the purpose of sending more, or even better, digital messages is a great ideal but is not the right answer. Two points to consider…

  1. To rightfully use the term, enterprise, it should at least cover a majority of the average media spend, if not all of it. Combining all digital channels, the best we can see in this digital coverage is about a 25% of ad spend and 40% of the consumption of media.
  2. Consumers exhibit multichannel behavior, 70% research and purchase in different channels, online versus offline. Being better at just the online part of this equation match well with consumer expectations or marketer needs.

#Digital #Attribution is a misnomer

March 9, 2012

The concept of “last click” is as flawed as attributing the purchase of an adult beverage to the neon sign hanging outside the liquor store. The concept of “Digital attribution” simply tries to count the number of beer signs the person saw. What about TV, bill boards, demographics and socioeconomic factors?

While reading a Digiday article this morning, “The Last-Click Attribution Dilemma“, two arguments presented by the author struck me as worthy of comment…

  1. Authors point – Brand marketers are staying out of display ads because of the inherent inability to properly attribute spend to results. Really?!? Is TV a good example of being able to attribute spend to results? Of course not. Yet, this has been the haven for brand dollars for generations. I suggest that while attribution is AN argument to this issue, the main argument is that display ad technologies target consumers very poorly and that those targeting capabilities have little to do with the knowledge and needs of brand marketers. Comscore identified that 80% of targeted ads fail to reach their intended audience. Pause for a second… yes, 80% failure. Why? They all rely upon poor proxies of the real, underlying predictive insight required… bad and incomplete data. 3rd party cookies, context and behavior are not sufficient. Individually or collectively.
  2. Authors point – focus on expanding perspective of digital touch points to do attribution properly. Three research points come to me: 1) about 40% of ad impressions occur in digital channels; 2) Forrester estimates that 70% of consumers exhibit multichannel behavior – researching in one channel and purchasing in another; 3) multichannel customers contribute 4-5 times the revenue per customer than single channel customers. Doing a perfect job at assembling all digital touch points will never be enough. I suggest it’s a false objective. It misses the perspective of consumer behavior, information necessary to support executive media mix decisions and simply creates focus on the minority of ad spend.

All of this makes me thirsty… Sierra Nevada’s my favorite beer!


Is #SocialMedia a consumer haven or a #marketing channel?

March 5, 2012

adage digital facebook articleWhile reading an #AdAge article today, it dawned on me… we have yet to see how social will really play in the marketing mix. The article – “Facebook Warns Brands that Scale in Social Won’t Come For Free” – explains Facebook’s position that marketers are going to need to increase their expectations of cost when it comes to reaching the large audiences they’ve amassed. Here’s a provocative question, do consumers agree to the value exchange? Do they believe in giving up their personal information and being exposed to ad impressions? Sure, they agree to terms and conditions, but do they reciprocate that interest by clicking, buying and advocating the advertisements?


My prediction… the game has hardly started, we don’t yet know the players and it’s too early to calculate the final answer… but todays’ consumer will win.

My humble opinion… social media sites are perceived differently than other consumer tools and destinations. It’s a very personal experience that will prove to result in strained relationships as technologist and marketers attempt to monetize. Consumers add content, share it with others and increase their networks… for themselves. Intervention by external forces who attempt to shift the value equation for the consumer, from participation to monetization, will result in flight to the next “cool” thing. Search engines, blogs, portals and commerce sites have familiar business models and rather predictable consumer interaction and reception. I don’t purport to speak for all consumers but it seems to me that the familial, personal interaction with social sites serves a vastly different purpose on the part of the consumer.

I’m just say’n… but do mark this date on your calendar:-)


Link to my New Years resolution byline on the Demand Metric Blog…

January 19, 2012

http://blog.demandmetric.com/2012/01/17/new-years-resolutions-for-marketers-part-iii/

Here are the highlights… in three points…

1) Learn to identify and digest anonymous, semi-identifiable and identifiable data

2) Learn how to leverage customer lifetime value, or a strong proxy for customer value, in your media investment decisions

3) Learn how to better market at the customer level, this will be the trend to discuss next year!

 


Narrow solutions lead to false impressions

December 30, 2011

Subtitle: If all you have is a hammer, the whole world looks like a nail

I recently read an article in digiDay, written by the CEO of a modestly large online personalization firm. The title drew me in… “Outsourcing Data Management is a Mistake“.  As I read, I was consistently impressed with the idea that narrow solutions, while interesting, lead to profound mistakes.

An open reply to the article –

If the proposal is that better management of online data needs to drive towards online personalization, I believe the premise and conclusions of the article are too narrow. While interesting, they are incomplete. Consider this, even if the premise is executed perfectly, advertisers will still have not solved 60% to 80% of the problem. A growing portion of media is being consumed online and a growing number of transactions are occuring online, but it’s still a minority.

The root of my point is that the writers premise solves only a small portion of all consumers interactions with a brand… not all portions of some consumers. In a world where more than 60% of consumers act in a multichannel manner and bring 4 to 5 times more value (Forrester research), solving the larger problem of multichannel insight has become the new table stakes. Using the writers premise, relying solely upon online actions to drive personalization, success would rely upon shere luck that a media impression would actually be triggered by the appropriate marketing reason.

 Until we have a data management solution that leverages the knowledge, segmentation and targeting of a brand as the primary data select and targeting methodology, we’re going to be chasing after the big money with small solutions. Consumer behavior is more complex than the distillation of online data. Consumer expectations are greater. The problems marketers are trying to solve are larger.

 What you propose isn’t wrong, I feel it’s just incomplete.

Love to hear your thoughts!


Believing “data” is more than behavior

August 11, 2011

I read MediaPost on a regular basis and find great value in their content. Maybe it’s a matter of timing, having just read several similar articles on DigiDay, but I have to express my deep concern over the lack of substance the digital marketing community expresses regarding marketable data. Behavioral data is interesting and for in-market, bottom of funnel, DR marketing efforts it may even be critical; however, it is by no means the “Pandora’s Box” of insight.

The article that triggered my entry today is “eXelate’s CEO Coins Term For DMP”. A main point in the article is to call out the clever twist on the acronym that the CEO of eXelate is espousing… it’s a Data Marketing Platform, not a Data Management Platform. Missing the point, is the concept of what “Data” is, not the nuance over managing data for marketing or marketing itself. The article starts off by declaring data as being behavior. Tacoda conducted research a few years ago to test out the concept of online behavior versus the purchase of a flat screen TV… using the implication of this article one would expect that the behavior of looking at flat panels would be the strongest intent indicator, right? Wrong, it was #22 on the list. #1 was viewership of military content. You’re probably asking yourself the question, “why military?” I don’t know. People are complex beings. What I’m asking myself at this point, and trying to communicate today, is “why behavioral data?”

Behavior, context, 3rd party data, and the myriad of proprietary segmentation models are all great… though each is incomplete. Not until we start to look towards the insight that brands possess regarding their target audience will the industry start to attract the brand dollars we’ve all been anticipating. The concept of marketing data and our identification as to what it is needs to expand, to include what marketers know it to be.

My $.02


500 years of marketing…

April 12, 2011

Over the last 500 years there were very few inflection points to the advertising and marketing ecosystem. In the last 5 years we’ve seen hundreds more infection points…

In the beginning… 1440 to 1940…

  • Guttenberg invented mass printing in 1440.Yet, it wasn’t until 1704 that the first newspaper advertisement, an announcement seeking a buyer for an Oyster Bay, Long Island, estate, is published in the Boston News-Letter.
  • Fearing there may be a pattern occurring, the first convention of advertising agents is held in New York in 1873.
  • Still not knowing which portion of his advertising is wasted, department store founder John Wanamaker is the first retailer to hire a full-time advertising copywriter, John E. Powers, in 1880.
  • Not until 40 years later did KDKA air the first commercial radio broadcast in1920.
  • 21 years after that, with 7,500 TV sets in New York City, NBC’s WNBT aired the world’s first legal television commercial July 1, 1941, costing the Bulova Watch Company a whopping $9.00.

Fast forward 37 years…

  • The first recognizable email marketing message was sent on 3 May, 1978 to 400 people on behalf of DEC – a now-defunct computer-maker – This is also noted as the first SPAM message.
  • In 1990, the very first tool used for searching on the Internet was launched, Archie.
  • Then, in1993, the Internet becomes a reality as 5 million users worldwide get online.
  • In 1994 HotWired coined the term “banner ad” and sold the first clickable advertisement to AT&T

During the last 15 years we’ve seen a flood of new media and advertising options: comparison shopping, SMS, mobile advertising, social media, games. As well as the digitization of our analog world: mobile phone, Kindle, addressable TV, HD radio, digital variable print.

Five years ago, who would have thought that MySpace would now be a worn out social network? Who’s next?


Consumer trust and social media marketing

July 19, 2010

I came across a new chart today, Consumer trust and purchase behaviorand found the relationship between source of input for decision-making and the resulting usefulness and trust they found in the content – people tend to trust content at approximately half the rate that they find it useful.

Point #1 – Consumers trust AND value the usefulness of information gleaned through conversation with friends, families and co-workers (peers) at an exceedingly high level around the globe. I suppose the only interesting point here is that the observation is global in its’ nature.

Point #2 – Those same consumers trust comments and blogs less. Core social content is seen as less valid in decision-making. In fact, comments are trusted and found useful at about half the rate as personal relationships, and blogs at half of that.

Point #3 – Not just that, but they tend to trust the content half as much as they find it useful. THis is probably the more interesting stat… seen from a different dimension, people consciously use the latter two sources of content at twice the rate that they find it trustworthy. This doesn’t seem sustainable. It seems to beg for a new solution… consumers around the globe appear open for new social solutions to amass decision-making content.

Love to hear your thoughts!


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