Building a user centric digital strategy from your owned, earned and paid data

A key challenge of digital marketing is to ‘humanise’ data, in other terms using the data your brand has on existing customers or prospects to make your offering more relevant to them. A focus on the customer will ultimately drive better return on investment from your marketing budget.

In the past, we have been pushing the same advertising message regardless of the audience, the content or the user journey. For example, if you were visiting a News website, you’d be served the same messaging whether you were in the Sports category or the Fashion one. Not the most efficient response rate!

With the (r)evolution of data tracking and analysis through automated technology, we are now able to identify and target a specific audience based on a multitude of criteria, making the segmentation more granular and accurate, and therefore broadcasting a message that’s more personalised and relevant for the user.

In theory, it seems pretty simple, but in reality, very few companies are getting it right, as marketing functions are still siloed across brand, products and digital. So where to from here? I’ve summarised below the three key go-to-market strategies to develop a user-centric approach across your owned, earned and paid media channels.

1. Understand and utilise data from your website

  • Identify if your website visitor is a first time visitor or a returning visitor
    • If they are a returning visitor, provide them with customised content based on what they viewed previously,
    • If they are a new visitor, ensure you are able to track and identify which content they interact with.
  • Identify if they are an existing customer or a potential customer
    • If they are an existing customer, offer them to create an account or to log in once it’s created.
  • Identify where your visitors come from using Google Analytics, Omniture or any other solution that provides website analytics
    • Typically, the digital channels driving visits are organic search, paid search, affiliates, advertising campaigns, lead generation, social media, PR.

More generally, it’s important to have all your content pages tagged so you can track the content your audience is interacting with and make an ongoing improvement on your website based on those learnings.

2. Understand and utilise data from your CRM

Once a visitor is identified as a customer, you can provide them with completely personalised content. Similarly, when you have done the right segmentation across your customer’s database, your EDM campaigns should be personalised based on the customer’s need state – including up-selling and cross-selling as well as delivering relevant content in relation to their existing products or services.

Additionally, I would recommend developing a Test & Learn plan to identify the performance across your website, as well as your EDMs. A lot of marketers oversee the benefit of improving their content or look & feel based on real data, not just assumptions.

3. Understand and utilise data from your media investments

Advertising plays a crucial role in the customer journey, from brand awareness through to conversion and advocacy. In order to best optimise your budget towards the channel in delivering on the business objectives, marketers need to have a very good understanding of the data that you can use to become relevant to their audience.

What data?humanise-data

  • First-party data: using your owned data i.e. from your website, social media, CRM or any other subscription (example: newsletter program).
  • Second-party data: an exclusive exchange of data between you and a partner, which usually has an interest into your product (example: Samsung providing their data to a Telco company to promote their new phone).
  • Third-party data: a paid third-party vendor that provides you with additional data, enabling more granularity in terms of demographics, revenue, gender, geo-location, hobbies & interests, life stages, etc. (example: buying data on people who use a premium credit card).

What strategies?

Currently, any media across Display, Mobile, Video can be bought programmatically (and soon TV, Radio and Outdoor). This term simply means that media buying is automated through a stack of technology platforms leading to better performance and efficiencies.

Firstly, map out the data points that you have access to through your owned data (first party) and then your external data (second or third-party). Once this is defined, segment your audience and draft each user journey along the purchase funnel – which is not necessarily a linear one and is most likely to be different for each audience segment.

While mapping out the multiple user journeys for the media buying, you should also define the creative messaging to make it relevant to each target audience.

For example, you’re launching a new credit card campaign targeting multiple segments, you will need to define the creative messaging for each single of them across their user journey: millennial, family with young kids, empty nester, etc.

Lastly, you should develop a few creative variations for each segment and each step in the journey to see which one works best. This way, you will be able to not only optimise the media buying, but also the creative messaging.

The two other variable to define in your strategy are the frequency: how many times the same user is likely to be targeted with the same creative, and the retargeting: set up some rules to avoid becoming an annoyance to your prospects and make sure the message is timely (for example: make sure to negatively retarget people who just bought your product).

Now that you are clear on your data touch points, target audience, media reach and creative messaging, your strategy should pretty much work like a decision tree. This decision tree is the first step to build a strong, integrated user-centric strategy that can be shared and implemented across your business.

Feel free to get in touch to discuss your digital strategy or any specifics around programmatic technology and data-driven marketing opportunities!

The ad-tech skill shortage and how to make sense of the digital landscape in APAC

It is critical for business leaders to make sense of the ever-changing digital landscape to drive their strategy and be more relevant to their customers. Having met a few key players in the Australian market lately, I decided to focus on the two main criteria that are holding our industry back in terms of growth. Firstly, looking at the future of Programmatic in the APAC region and secondly assessing the skills gap on the market.

What is Programmatic?

I simply define programmatic as the use of technology to bring efficiencies and measurable outcome in delivering real-time media and creative to the right audience. The current digital landscape is extremely fragmented with an increasing number of vendors and solutions, which are clearly overwhelming to most marketers. The reality is that there is no ‘off-the-shelf’ solution for brands and this is why marketers need help to draft a strategic plan when entering this market. 

Where is Programmatic going?

In a recent article, e-consultancy revealed the discrepancies between multiple sources in regards to growth forecasting for Programmatic in APAC. The author thoroughly analysed the numbers before coming to the following conclusions.

  • Going by Magna Global and eMarketer’s reports alone we estimate that programmatic ad buying will be around 22% of the digital ad spending in 2018. That is significant, but still probably niche.
  • If we, instead, use SOCintel360’s estimates it seems that programmatic will be almost a third of our digital ad budgets. And if that is the case, then there is a much stronger possibility that programmatic will be more of an essential skill for digital marketers.

However, saying 22% is insignificant is probably far from the truth. If you worked 5 days a week this means you would spend 1 day a week on programmatic. You had better know what you are doing!

Despite this contradiction in the data sources and given Programmatic only currently appeals to large companies and niche agencies or trading desks, I strongly believe that Programmatic is going mainstream and will require marketers to up-skill themselves and their team quickly.

How do we improve Programmatic knowledge?

AppNexus 2015 Global Programmatic Trust Study reveals that nearly three-quarters of the ecosystem (71%) now recognises knowledge of programmatic as one of the most important capabilities that agencies will need to possess in five years’ time.

In my opinion, it’s not only for agencies to own this but also brands.

Another piece of research from Smart Insights, eCommerce Expo and Technology for Marketing explores the digital skill gaps on the market today. Out of the eight listed, these are the ones that can make a difference in your business:

1. There is a major skills gap across a range of core digital marketing activities. These include planning: 37% want to improve digital strategy and integrated planning, 35% want to improve their knowledge of planning integrated, multichannel campaigns and 34% want to improve budgeting and financial modelling. Key tactics which marketers wanted to improve their skills levels include affiliate marketing (40%), mobile marketing (39%), SEO (36%) and customer data, insight and analytics (36%).

This means marketers need to develop their strategic thinking and planning across all digital channels. It is for them to own the strategy and brief their agency accordingly. So far, brands have been working in silos and would hire a different agency per channel, disregarding the necessity of a holistic approach across branding, product, marketing and customer loyalty.

2. Paid skills development investment is insufficient in many businesses. For formal qualifications and training, there was inadequate support in many businesses, with around half of respondents rating this poorly: paid qualifications (50% rated company support as inadequate); paid short-term courses (44% negative); paid events and conferences (42% negative).

Despite everyone agreeing on skills shortage in this industry, most businesses do not invest in up-skilling their teams, thinking that hiring millennials or ‘digital natives’ will resolve the issue. The result is both lack of knowledge, lack of understanding and lack of involvement from senior marketers. Therefore, it is urgent for management to shift their investment towards robust training through partnerships with technology companies or universities.

3. Unplanned, reactive management of digital marketing inhibits results and skills development. 77% of respondents favoured a data-driven planned approach to digital marketing based on planning, analytics, and continuous optimisation, but the reality was very different with just 37% agreeing that this approach was used, instead 51% described their approach as ‘reactive, relatively unplanned approach to digital marketing).

This means most marketers continue to do what they’ve been doing until they are asked otherwise, and mostly without understanding the why or the how. As a result, decisions are made without a plan for a successful digital transformation. I’ve heard in many instances that a brand would invest millions in developing a new website only to realise that the platform used doesn’t talk to the customer database. What a loss of money and talent!

Where to from here?

While ad-tech vendors are rushing to demonstrate differentiation, many are facing market consolidation, which is leading to a lack of long-term vision for their business as well as their clients. As a result, we keep raising talent and skills shortage issues without being able to successfully resolve them.

On the other hand, digital marketers are quite frankly struggling to make sense of the numerous technologies promising better reach, targeting, segmentation, conversion and more. They don’t have enough time or enough technical background to make sense of this crowded landscape (see MediaScape) and make ill-informed decisions to deliver the desired outcome simply due to the pressure to become “programmatic”.

Further to that, most marketers are not encouraged to pursue a test and learn approach by their management, even though it has clearly delivered for the most innovative brands in their industries. It is just not the standard practice, and we need to deal with that at C-level.

To be successful, marketers need to build their strategy with key partners, but without relying on them to DO the strategy. In other terms, they need to surround themselves with experts who are technology agnostic and capable of setting up business models that will bring data, creative and media under the same roof.

Adapting and innovating are the key challenges for businesses, not only in terms of their products or services but more importantly in terms of designing a user-centric strategy that places digital at its core. Moving forward, marketers need take ownership and accountability for their results across owned, paid and earned media to stay competitive and be a leader in their industry.

June investments in Digital and Mobile predict continuous growth in 2016

The World Economics Global Marketing Index (GMI) for June recorded values of 55.7, 54.7 and 55.8 in Europe, the Asia-Pacific area and the Americas respectively, reflecting a strong in marketing activity across regions.

This growth, however, is essentially driven by the allocation of marketing budgets assigned to Internet Media with an index value of 77.1 for Digital and 73.9 for Mobile advertising suggesting the two media on course to have the largest share of marketing budgets by 2016.Global Marketing Budgets by Media

For the seventh consecutive month, TV budgets have been falling down with an index recorded of 45.0. in the Asia-Pacific region; Radio and OOH expenditures followed a similar trend while allocations to Press spending in marketing budgets recorded the highest decline across all regions.

Marketing Budget by RegionThe Index for Global Marketing Budgets growth in June registered a value of 52.7, up by 0.9 on the month before.Whilst the index fell by 0.2 to reach 52.9, the fourth monthly successive fall in the Asia-Pacific region.

World Economics Chief Executive Ed Jones commented on the release:

“The Headline Global Marketing Index reading for June indicates that marketing activity is still growing across the world and in all regions. Marketing Budgets are still expanding and spending on Mobile and Digital media continue to take a rapidly growing share, while other media are declining.”

Source: WARC

 

 

 

 

PwC forecasts advertising investments to reach $16.4 billion by 2019

This week, PwC published their 14th edition of The Australian Entertainment and Media Outook 2015 – 2019.  The study forecasts advertising spends to increase by 4.8% from 12.9 billions in 2014 to $16.4 billions and internet advertising set to account for more than 50% of the total Australian advertising market by 2019.

Innovation through disruption is a key focus for the success and growth of the industry where start-ups have potential to contribute $109 billion or 4% of GDP to the economy by 2033*. Despite innovation being pretty poor in Australia due to multiple hurdles from the lack of investment in R&D to universities not delivering enough quality research, the study gives a voice to some significant entrepreneurs and investors who are trying to inspire that change in the economy.

‘While technology underpins nearly all disruptive start-ups, innovation goes beyond technology and can be applied to service, relationships, content, distribution, business models and funding.’

In the feature on the emergence and usage of mobile in the society, PwC describes how much technology has influenced business models from brands urging them to shift to consumer-centric solutions, as well as publishing and advertising landscape being shaken by agile ad-tech players, revealing how data is becoming a competitive advantage to survive on this market.

The study also provides a rich list of resources such as the summary of the key players in entertainment and media, operating in Australia produced by MediaScope.

*‘The start-up economy: How to support tech start-ups and accelerate Australian innovation’, PwC, April 2013

Source & copyright: PwC

PWC_Entertainment media outlook

32% of Australians share a news story via email or social media

The Reuters Institute just released their Digital News Report 2015* giving an overview of consumption in each country which includes Australia.  The survey gives detailed data tables and statistics around the use of smartphone and tablets and the role of different social networks for news. Overall key trends show a fast development of social and mobile news, a decline in desktop internet, and a significant growth in video new consumption online intensifying battle for global audiences online.

Interestingly, 32% of Australians share a news story via email or social media, ranking 4th/12 – on part with the US and before the UK ranking 10th/12 (19%). Similarly, 32% say the smartphone is the main way of accessing online news in AU, positioning Australians as early adopters of new technology and avid digital news consumers compared to their US & UK counterparts, respectively at 26% and 27%.

SourceNews

Without too much surprise, the data show that Facebook is becoming increasingly dominant, with 41% (+6) using the network to find, read, watch, share, or comment on the news each week – more than twice the usage of its nearest rival. In Australia, 48% use it weekly, followed by YouTube (15%), Google+, Twitter (7%) and LinkedIn (5%) at the back of the pack. Facebook is without doubt the channel of choice for finding, discussing and sharing news, with owned channels such as Instagram & WhatsApp playing a big role amongst younger groups. Acknowledging these averages mask significant differences between genders, ages, and countries in terms of the networks used. 18–24s continue to use Facebook and Twitter but have also adopted other networks and messaging apps for more private conversations, sharing pictures, and a different tone in term of devices usage, we can see that Apple ranks almost equal to other devices (31% vs. 30%) for smartphones whilst being the preference for tablets (25% vs. 11%).topsocialSourceAge

The survey also reveals second & third-screen devices becoming mainstream: 45% using two or more digital devices (58% for AU) and 16% using three or more digital devices. 15% say tablet is the main way of accessing online news versus 10% in the US and 18% in the UK). When asked Which, if any, of the following devices have you used to access news in the last week, 59% of Aussies said they used their smartphone, ranking #1 before most European countries included in the survey as well as the US and Japan.

Despite the traditional media industry in Australia, some pure digital players launched in the past 3 years such as the Guardian, the Mail Online, as well as Buzzfeed and the Huffington Post most recently counting on this strong usage of digital in Australia.

*Source & copyright: Reuters Institute