tag:econsultancy.com,2008:/topics/behavioural-targeting Latest Behavioural targeting content from Econsultancy 2016-05-23T14:29:29+01:00 tag:econsultancy.com,2008:BlogPost/67840 2016-05-23T14:29:29+01:00 2016-05-23T14:29:29+01:00 Highly targeted online ads don't work: Stanford researchers Patricio Robles <p>Eilene Zimmerman <a href="http://www.gsb.stanford.edu/insights/pedro-gardete-real-price-cheap-talk">explains</a>...</p> <blockquote> <p>In this case, the researchers were looking at cheap talk in retail, for example, an ad promising 'Lowest Prices in Town'.</p> <p>That can be credible when it’s used to draw in appropriate customers; in this case, those who are price sensitive.</p> </blockquote> <p>At the same time...</p> <blockquote> <p>They found that the most personalized ads were less effective because consumers worried they were being exploited.</p> <p>For example, says [Stanford Graduate School of Business professor Pedro Gardete], someone looking for a prom dress 'might get an ad from a retailer saying, "We have a wide selection of prom dresses! Click on this link!" The consumer clicks, and it turns out the retailer has dresses for all occasions but not specifically proms,' says Gardete.</p> <p>Those kinds of ads frustrate consumers and eventually become meaningless to them.</p> </blockquote> <p>Based on this, Gardete suggests that businesses might adopt a "less is more" approach in which less information is collected, information collection is more transparent, and targeting is used more sparingly. </p> <h3>Theory versus reality</h3> <p>While there's no doubt that a growing number of consumers are concerned about their privacy and how marketers are using information to track and target them, given the continued level of interest and investment in targeting tech and targeted ad offerings, does the researchers' model actually reflect reality?</p> <p>Obviously, a hypothetical retailer falsely promoting that it has a wide selection of prom dresses when it doesn't isn't likely to see good results, <strong>but this isn't how most experienced digital marketers are operating.</strong></p> <p>Instead, <a href="https://econsultancy.com/blog/64099-what-is-retargeting-and-why-do-you-need-it/">retargeting</a> (and <a href="https://econsultancy.com/blog/10194-the-roi-of-personalisation-infographic">personalisation</a>) are widely seen to drive ROI in the real world.</p> <p>As an example, AdRoll, a performance marketing platform provider, detailed <a href="https://www.adroll.com/sites/default/files/resources/pdf/case-study/AdRoll%20Case%20Study%20-%20Chubbies.pdf">in a case study</a> (PDF) how one apparel retailer used retargeting to deliver a 10.5x average ROI, 13% conversion lift and 33% lower CPA than average for other apparel retailers.</p> <p><a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences">Facebook Custom and Lookalike Audiences</a> have delivered similarly impressive results.</p> <p>Crowdfunding platform Tilt <a href="https://www.facebook.com/business/success/tilt">doubled</a> its conversion rate using Custom Audiences, and lowered its mobile cost per install by 30% using Lookalike Audiences.</p> <p>And Hospitality giant MGM <a href="https://www.facebook.com/business/success/mgm-resorts-international">realized</a> a greater than 5x return on spend using Custom Audiences.</p> <p>Needless to say, any specific marketer's mileage will vary, but on the whole, marketers are becoming more and more adept at targeting consumers online and doing so to good effect. </p> <p>That doesn't mean that marketers should rely on targeted ads exclusively, and the Stanford research is a reminder that targeted ads need to deliver what they promise to consumers.</p> <p>But targeted ads are here to stay because they work well enough of the time, even if <a href="https://econsultancy.com/blog/67830-young-users-aren-t-fans-of-targeted-social-ads-report/">many consumers say they don't like them</a>.</p> tag:econsultancy.com,2008:BlogPost/67835 2016-05-19T11:21:14+01:00 2016-05-19T11:21:14+01:00 Bringing data into creativity in a programmatic world Glen Calvert <p>Data isn’t sexy, consequently, it isn’t loved by brand advertisers. In their minds, data is the preserve of the far less noble direct marketing realm.</p> <p>The idea of putting data at the core of campaigns, which the direct marketer does, is an anathema to the brand advertiser.</p> <p>A neat illustration of this thinking is through <a href="https://econsultancy.com/training/courses/personalisation-enhancing-the-customer-experience/">personalised advertising</a>. Brand marketers can’t deny that they’d like to connect with us all individually.</p> <p>The “Share a Coke” campaign in which cans and bottles were personalised was a huge brand success.</p> <p>Around 1,000 name variations were available on shelves and over 500,000 available through the online store.</p> <p>So, why do brand advertisers seem reticent to deploy personalisation techniques online – a media tailor-made for such activity due to data?</p> <p>Why do we so rarely see good examples of this type of campaign in the digital environment?</p> <h3><strong>Falling in love with data?</strong></h3> <p>The answer to the previous question is branding’s lack of love for data. However, this mind-set could be changing due to a couple of factors.</p> <p>Brands love TV because it’s a wonderful platform to tell stories at scale.</p> <p>In comparison, online platforms for telling good brand stories at scale using data and creative have been more constrained.</p> <p>With smaller screen sizes and more limited ad ‘real estate’, brand banner advertising is more of a challenge.</p> <p>However, the skills and appetite for meeting this challenge and using data efficiently are increasing.</p> <p><img src="https://assets.econsultancy.com/images/0007/4847/share-a-coke.jpg" alt="Share a Coke Bottles" width="460" height="330"></p> <p>This improvement in the banner format is combining with a growth in other branding-type formats in display advertising, such as video and <a href="https://econsultancy.com/blog/63722-what-is-native-advertising-and-do-you-need-it/">native advertising</a>.</p> <p>The IAB’s latest <a href="https://econsultancy.com/blog/67746-10-action-packed-digital-marketing-stats-from-this-week" target="_blank">digital ad spend figures</a> showed both video and native spend grew around 50% last year to account for nearly half of display ad spend.</p> <p>These two parallel developments in display prove its increasing allure as a branding medium - FMCG advertisers, historically considered the least relevant in regards to online ads, are now the dominant spender on display, accounting for nearly £1 in every £5.</p> <p>We’re seeing this increasing willingness to embrace data manifested by clients taking control of their data destiny.</p> <p>A number of high profile brands are taking on long-term software contracts with data management platforms (DMPs), showing the appetite clients have to both control and exploit the data opportunity.</p> <h3><strong>Programmatic plumbing</strong></h3> <p>Alongside the rise in online branding formats, the other factor changing mind-sets among brand advertisers, rather surprisingly, could be <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic</a>.</p> <p>Something originally seen as even less sexy than data.</p> <p>The “plumbing”, or logistics, side of programmatic is becoming less of an obstacle to using data and creative to tell a good brand story.</p> <p>The amount of heavy-lifting required is reducing in terms of time, resources and money among agencies and vendors to connect the data, the creative and the inventory.</p> <p>Consequently, there’s a growing sense of enthusiasm about take-up among brands.</p> <p>So, as programmatic matures, many of these growing pains are less pronounced.</p> <p>As the plumbing between creative, data and buying becomes more automated, it means the industry can move more towards programmatic as a creative solution.</p> <h3><strong>Programmatic as creative</strong></h3> <p>In turn, <a href="https://econsultancy.com/blog/67554-2016-the-year-of-programmatic-creative/" target="_blank">programmatic creative</a> has become more advanced and more flexible, without compromising scale and automation, to meet the specific creative requirements and nuances that advertisers have for being able to tell their brand story.</p> <p>Programmatic creative is now flexible and advanced enough to insert dynamic and personalised elements into online ads to enable the idea of “mass personalisation”, which was essentially what the big idea “Share of Coke” brand campaign was shooting for.</p> <p>These developments hopefully thaw the relationship between brand marketers and data, particularly as they open up exciting and innovative brand campaign ideas that can be brought to life in this brave new world.</p> <p>Take, for example, Netflix’s campaign to promote the addition of all ten seasons of Friends to its library.</p> <p>Conceived by Ogilvy Paris, it’s a pre-roll video campaign that responds dynamically to videos watched on YouTube by inserting a clip from Friends that relates to the video topic searched for.</p> <p><iframe src="https://www.youtube.com/embed/K_3uKmLFHRI?wmode=transparent" width="560" height="315"></iframe></p> <p>Essentially, it uses data to relate Friends to almost anything you search for on YouTube.</p> <p>What will be your big brand idea this year that comes alive through data?</p> <p><em>To learn more on this topic, book yourself onto Econsultancy's <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training Course</a>.</em></p> tag:econsultancy.com,2008:Report/4093 2016-04-12T12:23:00+01:00 2016-04-12T12:23:00+01:00 People-Based Advertising in North America <h2>Overview</h2> <p>The <strong>People-Based Advertising</strong> report, produced in collaboration with <strong><a title="Signal" href="http://www.signal.co/">Signal</a></strong>, is based on a survey of more than 350 brand marketers and media buyers in <strong>North America</strong>. It explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem.</p> <p>With the unpleasant realities of ad blocking, fraud and viewability concerns weighing on marketers' minds, this report explores whether smarter, data-driven, people-based display advertising is a viable important alternative to the legacy model that is failing the online ecosystem.</p> <h2>What you'll learn</h2> <ul> <li>What are the issues with display keeping advertisers up at night?</li> <li>How are companies managing the data governance issues created by the relative marketing dominance of brands such as Google, Facebook and Twitter?</li> <li>How important is the process of onboarding in the future that advertisers envision?</li> <li>Are consumers likely to be less compliant in the future about the use of their data in addressable media?</li> </ul> <h2>Who should read this report?</h2> <p>The report is essential reading for both in-house marketers and agency professionals based in North America, as well as those outside the region who want to understand how people-based advertising is evolving in these countries.</p> tag:econsultancy.com,2008:Report/4052 2016-03-22T09:49:00+00:00 2016-03-22T09:49:00+00:00 People-Based Advertising in Australia <h2>Overview</h2> <p>The <strong>People-Based Advertising</strong> report, produced in collaboration with <strong><a title="Signal" href="http://www.signal.co/">Signal</a></strong>, is based on a survey of more than 350 brand marketers and media buyers in <strong>Australia</strong>. It explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem. </p> <p>With the unpleasant relalities of ad blocking, fraud and viewability concerns weighing on marketers' minds, this report explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem.</p> <h2>What you'll learn</h2> <ul> <li>What are the issues with display keeping advertisers up at night?</li> <li>What premium are brands willing to pay for people-based advertising?</li> <li>How are companies managing the data governance issues created by the relative marketing dominance of brands such as Google, Facebook and Twitter?</li> <li>How important is the process of onboarding in the future that advertisers envision?</li> <li>Are consumers likely to be less compliant in the future about the use of their data in addressable media?</li> </ul> <h2>Who should read this report?</h2> <p>The report is essential reading for both in-house marketers and agency professionals based in Australia or North America, as well as those outside the region who want to understand how people-based advertising is evolving in these countries.</p> tag:econsultancy.com,2008:BlogPost/67654 2016-03-16T14:25:45+00:00 2016-03-16T14:25:45+00:00 Google courts enterprise marketers with launch of Analytics 360 Suite Patricio Robles <p>To do all of this, the search giant has combined six products into a single platform:</p> <ul> <li> <strong>Audience Center 360</strong>, a <a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising">data management platform</a> (DMP).</li> <li> <strong>Optimize 360</strong>, a website testing and personalization solution.</li> <li> <strong>Data Studio 360</strong>, a data and visualization tool that can be used to analyze data collected by all of the Google Analytics 360 products.</li> <li> <strong>Tag Manager 360</strong>, which is based on Google's existing tag management solution.</li> <li> <strong>Analytics 360</strong>, the professional analytics solution that Google previously offered under the name GA Premium.</li> <li> <strong>Attribution 360</strong>, an attribution platform that marketers can use to evaluate the performance of their campaigns across channels.</li> </ul> <p>Google says that Analytics 360 Suite has been several years in the making, and was developed based on feedback it received from enterprise marketers, many of whom complained that their existing marketing analytics tools were not meeting their needs.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3052/blog_images__62_-blog-flyer.png" alt="" width="470" height="392"></p> <h3>Integration, integration, integration</h3> <p>Google believes it is delivering on those needs, and early customers like L'Oreal Canada, which says it has doubled anticipated revenue with Google's new offering, are already singing Analytics 360 Suite's praises.</p> <p><iframe src="https://www.youtube.com/embed/ETGsJfYb-gw?wmode=transparent" width="560" height="315"></iframe></p> <p><strong>But Google's secret sauce might not be breadth or depth, but rather integration.</strong></p> <p>Audience Center 360 offers native integration with DoubleClick and over 50 third-party data providers.</p> <p>Tag Manager 360 plays nicely with a variety of third-party vendors, including Turn, comScore, Criteo and Marin Software.</p> <p>Attribution 360 is capable of distributing data to DSPs and <a href="https://econsultancy.com/reports/rtb-buyers-guide/">RTBs</a>, can pull in data automatically from DoubleClick Campaign Manager, and offers an Offline Conversion Connector to help marketers attribute in-store sales to digital campaigns.</p> <p>Analytics 360 works with all Google ad products, and can be used to create remarketing lists that are automatically available in AdWords and DoubleClick Bid Manager.</p> <p>Because many marketers are already so heavily invested in Google's ad-related services, all of the integrations Analytics 360 Suite offers could give Google an edge when trying to win over marketers who are currently using competing solutions from a variety of vendors, some of whom only provide one or two of the functions in Analytics 360 Suite.</p> <p>That makes Analytics 360 Suite a threat to many companies, including Adobe, which offers a DMP, Adobe Audience Manager, and Tableau, which offers a business intelligence data visualization solution.</p> <p>Analytics 360 Suite likely won't be cheap – reports suggest pricing will be in the six-figure range – but if Google can lure enough enterprise customers with a one-stop shop proposition, it could prove to be one of Google's most important product launches in some time.</p> tag:econsultancy.com,2008:BlogPost/67554 2016-03-01T15:48:00+00:00 2016-03-01T15:48:00+00:00 2016: the year of programmatic creative? Glen Calvert <p>However, far less attention has been paid to the innovative element of this automated buying and selling of digital media – the creative.</p> <p>And herein lies the seed to the <a href="https://econsultancy.com/blog/67574-has-programmatic-advertising-killed-creativity-in-marketing/">merging of programmatic and creative</a>; which is the next wave of disruption and innovation to impact the digital ad industry – <a href="https://econsultancy.com/events/creative-programmatic/">programmatic creative</a>.</p> <h3>So, what is programmatic creative?</h3> <p>The software powered, automated, algorithmic approach to media buying, enabling pinpoint accuracy of people-based targeting with advanced optimisation is half the story.</p> <p>Programmatic creative is the enabling of intelligent creative, where each person is exposed to a brand’s message that adapts, changes and is personalised to them, regardless of the device or site they’re on.</p> <p>Programmatic creative enables the content of an ad to be programmatically manipulated so it’s more relevant and personal to the person it’s being served to, with a continuous feedback loop for optimisation.</p> <p>The same application of <a href="https://econsultancy.com/blog/64743-predictive-analytics-machine-learning-and-the-future-of-personalization/">machine learning algorithms</a> to decide who to target, when and on what site, will be applied to the creative messaging as well.</p> <p><strong><em>How will Programmatic Advertising impact the role of marketing professionals?</em></strong></p> <p><iframe src="https://www.youtube.com/embed/k93THhdXIIw?wmode=transparent" width="615" height="346"></iframe></p> <p>Programmatic creative optimisation enables the ad elements to adapt from various data points – such as the user’s previous surfing behaviour, their location, the time of day etc. – to change the message, font or colour in an ad.</p> <p>Programmatic creative also (and more interestingly) utilises user-specific data to enhance the messages themselves for that very individual.</p> <p>For example, showing the exact product they may like, and changing the price and offer based on who they are.</p> <p>In short, programmatic creative enables the intelligent manipulation of the creative based on what you know about that cookie ID, and the automated use of live data inside the creative so it’s increasingly personalised for the individual.</p> <p>It’s important not to confuse programmatic creative with serving dynamic ads via programmatic channels or dynamic creative optimisation.</p> <p>Programmatic creative goes beyond serving dynamic ads programmatically, it has the potential to adapt messages to individuals in real time on an on-going basis for true one-on-one communication, compared to delivering dynamic creative that is served to user segments that are predefined by the marketer.</p> <p>The critical benefit of programmatic creative is that it’ll be the only way to truly 'talk' to millions of people individually, and reach that previously mythical land for advertisers of "mass personalisation."</p> <h3>The ramifications</h3> <p>Software that can automatically build ads, optimise and personalise them, will have significant ramifications on the entire advertising value chain. It means traditional owners of marketing communications need to be prepared.</p> <p><strong><em>Has Programmatic Advertising killed creativity in marketing? </em></strong></p> <p><iframe src="https://www.youtube.com/embed/7fEj3_hG5mc?wmode=transparent" width="615" height="346"></iframe></p> <p>It’s not going to be easy. It’s a pretty well-known fact that creatives – the people designing the ad – don’t talk with the programmatic delivery teams and, therefore, don’t know if their work was effective or not.</p> <p>Some of the blame for this lies with marketers who could do more to teach creatives how their work is impacted by programmatic media plans, and the potential benefits ad tech provides without impinging on the creative process.</p> <p>Much of the focus of start-ups and innovation with digital advertising has been focused in the infrastructure, the plumbing hidden beneath that no one sees. However, with the increasing need to thwart <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">the threat of ad blocking</a>, 2016 will see much more focus on how technology can impact what we actually see, that which is delivered to consumers.</p> <p>Relevance and usefulness, without overstepping the delicate privacy line, is the key to a viable and successful online ad model.</p> <p>The impact on our industry will be huge and creative agencies should be the first to be prepared.</p> tag:econsultancy.com,2008:BlogPost/67590 2016-02-29T15:06:37+00:00 2016-02-29T15:06:37+00:00 Can targeted social ads help pharma overcome drug pricing controversy? Patricio Robles <p>As <a href="http://www.wsj.com/articles/drug-industry-launches-ad-campaign-aimed-at-lawmakers-1454885145">detailed by</a> the Wall Street Journal, as part of PhRMA's multi-million dollar spend this year, the organization will be relying heavily on social channels like Facebook, Twitter and LinkedIn for the digital portion of the campaign.</p> <p>The goal: counter ongoing public outrage over drug prices with the pharma industry's perspective in an effort to avoid or limit action that could harm pharma companies.</p> <p>According to the Wall Street Journal, the ads will try to put a human face on the industry:</p> <blockquote> <p>Many of the ads feature patients who have been helped by new medicines, and company scientists working on drug development. Others highlight the financial assistance companies provide to the poor and uninsured, through copay assistance and free-drug programs.</p> </blockquote> <h3>Smart targeting</h3> <p>The most interesting aspect of PhRMA's digital campaign is that it won't be attempting to win the hearts and minds of the general population.</p> <p>That is an impossible undertaking, as PhRMA board member and Celgene Corp CEO Robert Hugin told attendees at the JP Morgan Healthcare Conference in San Francisco in January.</p> <p>Instead, PhRMA plans to use the targeting tools offered by social channels to<strong> target its digital ads specifically to influential individuals, </strong>namely politicians and analysts who impact healthcare policy.</p> <p>Those targeting tools are increasingly powerful. For example, on Facebook, advertisers can target their ads to users in specific locations, like Washington DC.</p> <p>Combined with Facebook's ability to target using demographics, interests and behaviors, and it's likely that an organization like PhRMA could have quite a bit of success reaching a relatively small group of influencers with just a handful of thoughtful filters.</p> <p>For even greater accuracy, PhRMA could even employ <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences">Custom Audiences</a> and <a href="https://econsultancy.com/blog/65505-lookalike-audiences-the-next-big-thing-in-marketing">Lookalike Audiences</a> to deliver ads to specific individuals already known to the organization, and people who are similar to them.</p> <p>Obviously, given the controversy over how drug companies price their medications, it's improbable that a highly-targeted digital campaign alone would be sufficient.</p> <p>But combined with ads in other channels and direct lobbying/outreach, PhRMA's digital ads could play an important role in helping the organization reach political and policy influencers.</p> <p>Most importantly, they show how the increasingly sophisticated targeting capabilities of large social platforms like Facebook are changing the game for marketers who need to reach small and very specific groups of users within the largest online crowds.</p> <p><em>For more on this topic read, <a href="https://econsultancy.com/reports/healthcare-study-organizing-marketing-in-the-digital-age/">Healthcare Study: Organizing Marketing in the Digital Age</a>, which was published in partnership with Ogilvy CommonHealth Worldwide.</em></p> tag:econsultancy.com,2008:BlogPost/67523 2016-02-19T14:25:18+00:00 2016-02-19T14:25:18+00:00 Engagement is a better route to campaign accuracy than big data alone Doug Conely <p>At the same time, technology providers are also more motivated to apply their data and target consumers efficiently, instead of simply shooting for volume.</p> <p>Of course, big data does come into play when improving engagement but it should be a means to an end, and not the end in itself.</p> <p>We’ve seen marketers who’ve become so focused on data that two worrying things happen:</p> <ol> <li>they neglect other strategic decisions,</li> <li>and fail to recognise data's limitations.</li> </ol> <h3><strong>It’s so big, there’s too much noise</strong></h3> <p>Big data has simply become too convoluted, and possibly too big.</p> <p>While useful to a point, over-saturation affects our ability to accurately assess our consumers.</p> <p>An excellent analogy is sound quality; beyond a certain point, additional resolution doesn’t noticeably improve things.</p> <p>In other words, adding other types of data beyond what is necessary doesn’t provide any additional benefits. Bar a minimal improvement in efficiency, the story stays pretty-much the same.</p> <p>Consumer data comes with a significant amount of ‘noise’ - the more collected, the more noise one has to deal with.</p> <p>These errors come up during measurement, categorisation, and most often with identification. After all, we’re still in a world where cookies, not people, are a unique identifier.</p> <p>An example of these errors is the way many targeting and measurement models assume that if you click on an ad and subsequently purchase, that conversion must have been due to that ad. This is quite a suspect assumption.</p> <p><img src="https://assets.econsultancy.com/images/0007/2048/Search_marketing.png" alt="" width="800"></p> <p>Another prime example of this measurement error is <a href="https://econsultancy.com/training/courses/seo-training/">search advertising</a>.</p> <p>Search-based ads are deliberately targeted at those consumers most likely to purchase the advertised product and timed to arrive when a consumer is performing a task related to the product.</p> <p>Data on conversions from such search campaigns that assume conversions were due to the ad is at, best, inconclusive and worst, just wrong. </p> <h3><strong>Data can backfire - even when used well</strong></h3> <p>Advertising effectiveness studies have shown that targeted ads work and do a better job of grabbing attention.</p> <p>Data plays a key part in this by allowing us to hyper target consumers.</p> <p>However, other, trickier insights have reaffirmed another truth we know – that too much of anything isn’t always a good thing. Think about how too much targeting can have a negative impact.</p> <p>Consumers can react adversely to ads that are too specific and narrowly targeted.</p> <p>Ads that seem to invade their privacy are viewed with suspicion rather than interest and can cause anger and damage to the brand.</p> <p>It’s vital – and certainly not easy – to achieve that very delicate balance of engaging the right audience, without overly interrupting the user experience and causing concern.</p> <h3><strong>Where data plays the best part</strong></h3> <p>While data can be extremely useful, its role should primarily be to identify consumer receptivity, or willingness to receive a message from a brand.</p> <p>Beyond this, it’s a better and more productive route to understand what consumers are interested in reading about, learning, or experiencing and make every effort to bring them content that hits the right notes based on these interests.</p> <p>This is where delivering the right advertising content becomes extremely important so that people are more likely to spend time looking or interacting with it.</p> <p>This is where we get into the realm of engagement – an extremely prevalent buzzword but one on which there’s very little consensus as to what it actually is.</p> <p>For me, it’s about maximising time spent with users who are the most likely to become your customers but haven’t yet raised their hands with a signal like a branded keyword search term or a site visit.</p> <p>It’s about focusing on campaigns that capture and sustain audience attention.</p> <p>After all, brand affinity can only be built when the audience has spent sufficient time engaging with a brand.</p> <p>Data will, of course, play a key role in helping us on this journey but we shouldn’t miss the wood for the trees.</p> tag:econsultancy.com,2008:BlogPost/67517 2016-02-11T11:08:00+00:00 2016-02-11T11:08:00+00:00 How to embrace creativity in the programmatic age Maeve Hosea <p>These personas include an understated man who wants to look stylish but not fashionable, ‘aspiring fashionistas’ and ‘extreme fashionistas’.</p> <p>Tom Lancaster, senior creative manager at <a href="http://www.topman.com/">Topman</a>, oversaw the development of multiple creative executions, which then ran in parallel media placements online. The one that attracted the most interactions became optimised.</p> <p>“Programmatic allows you to run segmented work that will appeal to all of your audiences – it then optimises the creative to the version that best suits a media channel’s audience,” comments Lancaster.</p> <blockquote> <p>Taking the creative programmatic route gives you a much bigger brief and a lot more work to do, but the benefit is that when you are building that creative you can make it the right kind of thing for each target audience.</p> </blockquote> <p><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Programmatic advertising</a> is currently gaining momentum because of the attractive promise to brands of data-led real-time relevancy and accuracy in who they can target.</p> <p>By leveraging the capacities of programmatic display advertising, Topman not only targets people on key demographics such as age and profession but has found a relevant way to reach consumers on publisher and lifestyle sites beyond the usual fashion media.</p> <p>However, although creative programmatic strategy is a part of the ongoing picture for Topman, it has its limits.</p> <p>The first is the cost factor: “You have to think how much of your budget you want to spend on your creative versus your media buy,” explains Lancaster.</p> <p>“And obviously your media buy has to be sizeable enough to want to spend money on all those additional creative executions.”</p> <p>It is not only about the budgets for individual campaigns either: if a brand is taking a programmatic approach, it has to make sure it has a tailored experience to take them through to post click.</p> <blockquote> <p>If you capture someone with quite understated style but then take them to somewhere where there isn’t any of that available to them, then you may have acquired someone but you might not be showing them something that converts them.</p> </blockquote> <h3>Topman</h3> <p>Looking ahead, Lancaster sees a considerable untapped opportunity in the creative programmatic sphere. He would like to exploit the ability to embed live text with an advert, updating the copy for each type of customer and their lifestyle habits.</p> <p>He also sees the potential for serving different creatives in relation to the weather at a given IP address.</p> <p><img src="https://assets.econsultancy.com/images/0007/1698/Screen_Shot_2016-02-11_at_11.02.16.png" alt="" width="800"></p> <p>“It is all the sort of things people have wanted to do for a really long time and if you had this granular level of media buying and creative production then you would do it,” says Lancaster.</p> <p>“However, the challenge is having all those matrix of options at the same quality level: getting that ‘hero creative’ finish lots and lots of times.”</p> <h3>Right Time, Right Place</h3> <p>While some fear the implied threat to creativity that the automated nature of programmatic brings, Nicolas Roope, founder and creative director at Poke London sees it as timely.</p> <p>“It is newly available inventory coming together with concepts that already have personalisation and contextuality built in that makes programmatic exciting now,” comments Roope.</p> <blockquote> <p>Programmatic is a natural extension of storytelling in the digital space: always about some degree of interaction, some degree of personalisation, some degree of contextuality and timeliness.</p> </blockquote> <p>With creative programmatic, those key principals of time, place and context can be applied at scale, giving mass reach to personalised advertising.</p> <p>Essentially, it allows brands to get more relevant and creative and Roope sees that creativity flourishing in the work of Unilever’s Axe brand in Brazil.</p> <p>The brand recently leveraged programmatic adverts to serve online viewers with up to 100,000 variations of its “Romeo Reboot” advert.</p> <p><iframe src="https://player.vimeo.com/video/131929702?color=fcfbfa&amp;title=0&amp;byline=0&amp;portrait=0" width="615" height="346"></iframe></p> <p>Those variations in soundtrack, setting and plotline were part of a personalisation drive that allowed for changes to six out of the eleven scenes in the advert.</p> <p>“Fundamentally programmatic is interesting,” says Roope. “Because it highlights how limp, unintelligent advertising in a digital interactive space just doesn’t make any sense.”</p> <p>If successful, he argues, it delivers compelling creative, connecting people with the brand at the opportune moment. Roope also cites Google’s work with billboards as a valuable example of an inspiring creative approach to programmatic.</p> <p>Google trialled its DoubleClick ad technology last year, allowing premium billboard ads to be bought programmatically and passers-by to see the most relevant adverts for the time of day and location.</p> <p>“The real time quality of weather, sports and travel news was quite a surprise and interesting for people,” comments Roope. “That contextuality can be really powerful.”</p> <h3>Affinity and Desire</h3> <p>The antagonism with programmatic tends to come when you examine the formats used in most programmatic deals, which are currently much more constraining than the formats used in broadcast media.</p> <p>Within creative programmatic, you need to have very quick, low-cost adaptability for the best campaigns to work. This may call for a hundred different versions of a very similar idea and so the construct tends to be more limited and more mechanical.</p> <p>Programmatic has its place for Charles Vallance, co-founder and chairman of integrated agency VCCP, but it shouldn’t be at the expense of building a brand in full view.</p> <p>He argues that brand values and brand affinity are inextricably linked to bigger budget brand awareness campaigns.</p> <p>“We must value the advantages and efficiencies of programmatic,” he says. “But we must not have that at the expense of the colossal value of building a brand and building affinity that is shared and appreciated by a broader audience.”</p> <p>Vallance says that there are two things that communication can do: the short-term goal of selling things and the longer terms one of creating an environment of ‘buyability’ around a brand.</p> <p>“If I only ever communicate to people with the precision of programmatic, I might never make them want to buy,” he cautions.</p> <blockquote> <p>The two go hand in hand: you need broadcast or mass communication to create a collective sense of why this brand is desirable, what this brand means, what this brand stands for, and then programmatic can harness and exploit that.</p> </blockquote> <p>Shared real-time experience will never go out of style and is arguably much more valuable than automised, fragmented ones, however accurate they may be.</p> <p>“There is nothing very programmatic about Star Wars,” offers Vallance. “You don’t want 100 different versions: you want the one version that everyone is talking about.”</p> <p><strong>Creative Programmatic Conference</strong></p> <p>Charles Vallance, Tom Lancaster and Nicolas Roope will be speaking on a panel debate at Econsultancy’s <a href="https://econsultancy.com/events/creative-programmatic/">Creative Programmatic</a> event on 2nd March.</p> <p>The session will examine the opportunities and challenges of harnessing programmatic in the creative process.</p> <p><em>Please note that this article was <a href="http://www.marketingweek.com/2016/02/08/how-to-embrace-creativity-in-the-programmatic-age/">originally published on Marketing Week</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67395 2016-01-13T02:09:00+00:00 2016-01-13T02:09:00+00:00 Three things email marketing leaders do regularly [APAC case studies] Jeff Rajeck <p>In our recent <a href="https://econsultancy.com/reports/email-census">Email Marketing Industry Census 2015</a>, we discovered that email marketing is still a very popular strategy for brands globally.</p> <p>One reason for this is that email marketing offers great return on investment (ROI).  </p> <p>Two-thirds (66%) of marketers felt that their email marketing ROI was better than average, and less than one in ten (7%) of those surveyed felt it was 'poor'.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0595/roi_from_channels-blog-flyer.png" alt="" width="470" height="414"></p> <p>The same group also felt very positive about email marketing's future. The vast majority (78%) disagreed with the statement 'Email marketing will be redundant in five years' and only 9% agreed.</p> <p>So as email marketing is maintaining its popularity, it's useful to review the state of the art occasionally for some best practices.</p> <p>And though it's interesting just to see what everyone else is doing, it's also good to use these best practices to review your own email marketing and see if it is up to scratch.</p> <p>So, for your review and reflection, here are three things which Asia-Pacific email marketing leaders do regularly, each with a relevant case study.</p> <h3>1. They come up with a strategy first, then tactics</h3> <p>When thinking about all the things that you can do with email, it's easy to focus on the tactics. Tactics, after all, are where you provide value to the customer and get metrics to report upwards.</p> <p>And there are plenty of guides to help you with tactics. You can find dozens of blog posts telling you <a href="https://econsultancy.com/blog/64878-45-words-to-avoid-in-your-email-marketing-subject-lines/">how to write a better subject line</a> or about <a href="https://econsultancy.com/blog/62688-six-case-studies-and-infographics-on-the-optimal-time-to-send-emails/">the optimal time to send emails</a>.</p> <p>But without a good strategy, it's hard to know which tactics to use.</p> <p>And once your campaign is finished, it's much harder to analyse the effectiveness without referring to the original strategy.</p> <h4>OK, but what is an email marketing strategy?</h4> <p>There are many types of marketing strategies, but for email marketing one of the best is the segmenting, targeting, and positioning (or STP) approach.</p> <p>For a full explanation of STP, there are excellent resources available (<a href="http://www.slideshare.net/crisanthony/plenus-stp">here's one</a>), but here is a short description of how STP relates to email marketing.</p> <p>There are three steps to this approach: </p> <ol> <li> <strong>Segment</strong>: Divide your email list into exhaustive and mutually exclusive segments.</li> <li> <strong>Target</strong>: Decide which of your offers is most appropriate for each segment.</li> <li> <strong>Position</strong>: Then plan to communicate the value your offer provides to the targeted segment.</li> </ol> <p>How you execute on the strategy, the tactics, should be geared towards capturing the information you need to segment and delivering your offer to the intended target.</p> <p>It's fairly simple, but too often marketing departments lose sight of their original strategy and execute tactics without knowing why they are doing it.</p> <h4>Thai Airways: Strategy in practice</h4> <p>A good example of a company that had a <a href="https://www.marketingmag.com.au/hubs-c/jetting-towards-brand-loyalty/">clear strategic vision ahead of a tactical email marketing campaign</a> is Thai Airways.</p> <p>In order to re-activate its Australian customer base, Thai Airways sent an email to its Australian customers about a contest to win a free trip.  </p> <p>To enter the contest, though, participants had to tell Thai Airways when they were available to travel.</p> <p>But instead of just using this data for the contest, Thai airways then segmented its customer base using the customers' preferred travel dates.</p> <p>Then, it sent targeted emails to each segment with an offer positioned to appeal to each customer's personal travel time frame.</p> <p>In short, Thai Airways </p> <ol> <li>Segmented its customers by travel date preference.</li> <li>Targeted those customers with a travel offer relevant to their preferences.</li> <li>Positioned the fare using a personalized email highlighting the offer and the travel dates.</li> </ol> <p> <img src="https://assets.econsultancy.com/images/0007/0596/Picture4.png" alt="" width="389" height="656"></p> <p>The results were great. Through using STP Thai Airways was able to increase the average open rate of its emails to 40%, well above the Australian industry standard of 16 to 24%.</p> <p>But more interesting than the results is how the team at Thai Airways: </p> <ul> <li>Thought about what product they wanted to position (time-sensitive travel deals),</li> <li>Worked out how to get the data they needed to segment their email list,</li> <li>And executed using a personalized email. </li> </ul> <p>Thai Airways truly executed a strategy-driven, tactical campaign.</p> <h3>2. They use customer behaviour to trigger emails</h3> <p>Brands gather customer data in other ways besides surveys though, too. Many companies are now using customer behaviour in order to better segment and target their customer base.</p> <p>For example, many businesses now send emails to customers who have 'abandoned' an online shopping cart on their site.  </p> <p>Our email survey indicated that nearly two in five (37%) used this tactic in 2015, nearly twice as many who did so in 2013 (20%).</p> <p>But there are other behaviors which can used to trigger an email to improve customer experience.  </p> <h4>Zuji's behavioural approach</h4> <p>Zuji, an Asian online travel site, <a href="http://www.experian.com.sg/resources/zuji-case-study-overview.html">sends emails which are triggered by browsing behaviour on its website</a>.  </p> <p>That is, when someone registered at Zuji clicks on a link or conducts a flight search, Zuji records the behavior and associates it with the person's email.</p> <p>Then, should Zuji's algorithm determine that the customer needs more information or perhaps a special offer, Zuji's email systems sends a personalized message.</p> <p>According to a recent case study, using behavioural emails resulted in a 50-fold improvement on revenue per thousand emails.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0597/capture-blog-flyer.png" alt="" width="470" height="467"></p> <p>But more than just increasing revenue, personalized emails are also a great way of improving the customer experience.</p> <p>Getting relevant, personalized information when you're in the research stage is almost always welcomed by customers.  </p> <p>And it's not surprising that doing so led to more sales for Zuji.</p> <h3>3. They keep their email list clean</h3> <p>And finally, in order for these programs to work continuously, top brands put a lot of effort into keeping their mailing list clean.</p> <p>One big part of maintaining a clean email list is monitoring the bounces when you send a campaign.  </p> <p>Just in case you weren't aware, every email campaign should have a 'bounce report' which tells you why an email couldn't be delivered to one of your customers.</p> <p>Sometimes, things happen out of your control. The customer may have closed their account or moved jobs. Or the company may have gone out of business and the domain is now invalid.</p> <p>But quite often you can fix the problem. The bounce may have been caused by a misspelling or the addition of an invalid character, such as a space. </p> <p>If you monitor your bounce report regularly, you can fix these manually and 'rescue' the email address quickly.</p> <p>But more serious problems can be identified from the bounce report, as well.  </p> <p>Your domain may have been, unknowingly, blacklisted by a major email provider such as Hotmail or Gmail. This means that your emails will either be delivered to spam folders for people who use those services, or not at all.</p> <h4>Estée Lauder: Improving deliverability</h4> <p>Estée Lauder in Malaysia <a href="http://www.experian.com.my/assets/resources/case-studies/estee-lauder-malaysia-case-study.pdf">had a big problem</a>. Its emails had a bounce rate of 14.1% on average and ran as high as 21.6%. This meant that, at times, Estée Lauder was not able to deliver email to one in five people on its list!</p> <p>To improve deliverability, Estée Lauder implemented new email software (CheetahMail) and went to work on reducing bounces.</p> <p>First, the system validated its existing list and then deployed a bounce management scheme which removed emails which frequently bounced.</p> <p>But another problem it addressed was deliverability. This involved working with a high-quality email service provider (ESP) who had good relationships with major email providers and making sure that all of their anti-spam policies were being followed.</p> <p>Then, the emails it sent were far more likely to be delivered to recipients in their inbox, and not as spam.</p> <p>The results were that Estée Lauder reduced its email bounce rate from over 10% to under 1%.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0598/picture2-blog-flyer.jpg" alt="" width="470" height="473"></p> <p>Now, it is easy see this and think you don't have a problem with a bounces. Most companies already have bounce rates under 1%.  </p> <p>But maintaining focus on deliverability is still important as every email which bounces is a lost opportunity for better ROI.  </p> <p>In fact, cleaning your email list is probably one of the most underrated and effective email marketing tactics for improving ROI.</p> <p>It's also a great place for to start looking for issues if you feel like your email campaigns aren't working as well as they used to.</p> <h3>So...</h3> <p>Brands that do email marketing well tend to have strategies before tactics, use multiple data sources when targeting emails, and use many tactics to keep their email list clean.</p> <p>If you could only do one of these, though, conducting strategic analysis of your email list before executing tactics is probably the most important.  </p> <p>You can try all the tricks to improve open and click rates through A/B testing subject lines and body copy, but a good strategy is a much better way to spend your scarce time and resources.</p> <p>This means segmenting your list into meaningful groups, coming up with offers specifically for the segment, and then positioning it in a way which appeals to them.</p> <p>Doing so is the shortest path to improving email marketing ROI and boosting your email marketing program up with the best in the industry.</p>