tag:econsultancy.com,2008:/topics/big-data Latest Big data content from Econsultancy 2016-05-19T11:21:14+01:00 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:BlogPost/67850 2016-05-16T14:29:08+01:00 2016-05-16T14:29:08+01:00 Quantitative marketing: You have enough data to improve performance. I promise. Evan Dunn <p>The thing is: <strong>there is always enough data to improve marketing performance</strong>. </p> <p>Allow me to explain. There are many ways to improve marketing's ability to accomplish its objectives.</p> <p>Each of these analytical methods is at its best with first-party (internal) data, like the juicy stuff found in campaign measurement, but each can also benefit heavily from the application of third-party (external) data.</p> <p>Even without consistent campaign data, however, there is always a wealth of insight to be garnered from analyzing first-party data, both digital and otherwise.</p> <p><a href="https://econsultancy.com/blog/66415-three-key-trends-from-our-data-driven-marketing-briefing-digital-cream-2015/">Data-driven decision-making</a> was the most critical method for driving growth for 83% of enterprise marketing executives in 2015, according to an <a href="https://www.ana.net/content/show/id/37128">Association of National Advertisers study</a>.</p> <p>Each of the following types of data are almost certainly somewhere in your organization.</p> <p>The trick is, of course, extracting them at a speed that enables marketing rather than hinders it. But that's less difficult that one might think these days.</p> <p>Once extracted, the data must be "harmonized" (taught how to play nicely with other data) in order to enable cross-channel, cross-regional and cross-departmental insights.</p> <p>We call this "quantitative marketing" - the idea that marketing can be as much science as it is art. </p> <h3>Sales (or Conversions or Transactions or Orders)</h3> <p>If you don't have this data, you're not in business. Okay, okay - you, marketing executive, may not have this data, especially not in any way that is valuable to your marketing decision-making.</p> <p>But some silo somewhere in your organization holds this treasured data set. And it can inform marketing a great deal.</p> <p><em>Obligatory stock photo of some silos</em></p> <p><em><img src="https://assets.econsultancy.com/images/0007/4946/silo.jpg" alt="" width="700"></em></p> <p>The more "digital" your business category, the more likely it is that this data is easy to access.</p> <p>For example, ecommerce tends to lend itself quite readily to the spread of sales data, since it is inherently collected in digital databases. But brick-and-mortar categories are a few degrees more complex.</p> <p>Even more complex are CPG and some B2B2C businesses, whose sales data is consumed outside of their organizations and (hopefully) reported back accurately and with ready utility. </p> <p>So, <strong>how to use sales and conversion data to improve marketing:</strong></p> <ul> <li>Analyze the data itself. Do certain products sell more than others? Have you run any campaigns for those products, or are the products you're marketing not selling well?</li> <li>Overlay the sales or conversion data onto your trendlines for spend and KPI breakdowns for different segments (territories, channels, tools, agencies, etc.). "Correlation does not imply causation" is relevant here - but that doesn't mean correlations aren't sometimes meaningful.</li> <li>Contract (or better yet, hire) <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">a data scientist</a> to run cluster analyses (and other fancy names of fancy mathematical techniques) on the data. Performance by geography, product category, product color and other attributes inform a variety of business operations. Marketing can use the insights to grease the engines of campaigns.</li> </ul> <h3>Spend</h3> <p>It feels counterintuitive to reference marketing expenses as an opportunity for improving marketing performance, but hear me out.</p> <p>There are three primary types of marketing spend data:</p> <ol> <li>Media buys.</li> <li>Agency vendors.</li> <li>Marketing technology vendors.</li> </ol> <p>Typically, agency vendors includes some media buy and some marketing technology, but it's difficult to truly parse the percentage of each with many vendors.</p> <p>Some vendors combine two or three of these spends into one bundled cost, like conversion shops you pay a cost-per-lead fee, or aggregators, or programmatic media. </p> <p>It seems a lot of the marketing world gets caught up in the parsing of these costs, when what really matters is that all costs must be accounted for.</p> <p>Media-mix modeling/optimization is one way of analyzing the spend (media buy) vs. the return (sales) using statistics.</p> <p>But the same theoretical models can be applied to martech and agency vendors - using data science to predict which vendors will deliver what results.</p> <p>Even if you don't go that deep, however, a lot can be gained from the quantification of spend data, and the visualization of spend alongside sales, with all available breakdowns.</p> <h3>Third-party data</h3> <p>Ingesting and analyzing third-party data gives quick wins to large marketing organizations. Here are some examples:</p> <p><strong>1.</strong> Ever wondered if your offline campaigns are connecting with the right audience? ComScore just acquired Rentrak - and the two together provide fascinating levels of detail into offline audiences.</p> <p><strong>2.</strong> Ever thought about what's working and what's not working on your website? <a href="https://econsultancy.com/blog/66230-a-beginner-s-dictionary-of-google-analytics/">Google Analytics</a> is free. Use it - and hire someone who knows how to dig up truly meaningful insights.</p> <p><img src="https://assets.econsultancy.com/images/0007/4947/Google_Analytics.png" alt="" width="800" height="505"></p> <p><strong>3.</strong> Ever wondered if your campaigns are successful driving awareness? If you're consumer-focused, use <a href="https://econsultancy.com/blog/67137-social-monitoring-listening-what-is-it-and-do-you-need-it/">social listening technology</a> to analyze what people say about your category vs. your competitors vs. your brand/product.</p> <p><strong>4.</strong> Looking to see how well you know your target audience, online opportunity and customers? </p> <p>Dig into Facebook Audience Insights (for free in its advertising portal), run your emails through TowerData, analyze deep mobile demographics/psychographics with PushSpring or Analyze Corp's Clientell tool.</p> <p><strong>5.</strong> Considering launching <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">paid search campaigns</a>? Use tools like SEMRush to approximate competitor investment in paid search.</p> <p><strong>6.</strong> Considering launching a new social presence or new social accounts? Use <a href="https://econsultancy.com/blog/65560-what-s-the-difference-between-paid-owned-and-earned-media/">owned social analytics tools</a>, coupled with social listening technology, to derive what your competitors are doing, and which of their activity seems successful.</p> <p><strong>7.</strong> Considering launching display advertising campaigns? Use Moat.com to analyze how your competitors are using online display.</p> <h4>The list keeps going...</h4> <p>...and this is just the tip of the iceberg of the applications of data to marketing activity - but you get the two big ideas:</p> <ul> <li>Useful data is out there.</li> <li>Useful data is in your organization.</li> </ul> <p>These types of quantitative analyses are foundational to marketing success. As Mike Schmoker said...</p> <blockquote> <p>What gets measured (and clearly defined) gets done.</p> </blockquote> tag:econsultancy.com,2008:BlogPost/67828 2016-05-10T14:58:27+01:00 2016-05-10T14:58:27+01:00 Palantir's woes bring Big Data challenges into focus Patricio Robles <p>That's <a href="https://www.buzzfeed.com/williamalden/inside-palantir-silicon-valleys-most-secretive-company">according to</a> BuzzFeed's William Alden, who obtained internal documents detailing how Palantir has struggled with some of its blue chip clients, some of which pay more than $1m per month for the company's services.</p> <p>According to Alden three of those clients, Coca-Cola, American Express, and Nasdaq, "have walked away" in the past 13 months, and Palantir's effort to create a data sharing consortium for CPG companies "has stumbled."</p> <p>The documents also reveal that not all of Palantir's current clients are convinced that their collaborations are paying off yet.</p> <p>For example, Alden points to Michele Buck, the North American president for The Hershey Company, who indicated that the company "did not see value from Palantir in 2015."</p> <p>A Hershey Company spokesperson told BuzzFeed that it considers Palantir "a valued partner" and stated "we have now identified areas for commercial and operational value and are targeting our efforts there," but Alden's story highlights a number of challenges that companies are facing as they seek to take advantage of Big Data.</p> <h3>Big data requires people</h3> <p>Companies have more data than ever, but data on its own only becomes truly valuable when it's translated into actionable insight.</p> <p>One of Palantir's selling points is that it has the brilliant people required to do just that. But even with more than $2bn in funding and access to the Silicon Valley labor pool, the company has apparently struggled to retain employees.</p> <p>According to Alden:</p> <blockquote> <p>A chart from Palantir’s internal wiki said the departures through mid-April amounted to 5.8% of all staff, or an annualized rate of 20%. That compares to a departure rate of 13.6% in 2015, 12.2% in 2014, and 9.2% in 2013. </p> </blockquote> <h3>Domain expertise is often important</h3> <p>But delivering actionable insight isn't just about having butts in seats. It's about having the right butts in seats.<br></p> <p>Coca-Cola conducted a pilot with Palantir in 2014 that was designed, in part, "to help revive sales of Diet Coke in North America through analysis of customer data."</p> <p>But the beverage behemonth ultimately decided not to sign a five-year agreement with the big data analytics firm.</p> <p>An internal email from a Palantir executive revealed that Coca-Cola "wanted deeper industry expertise in a partner" and that the brand's staff often found it hard to work with Palantir's team which, like many companies in Silicon Valley, skews young.</p> <h3>Data is cheap but Big Data analytics is expensive</h3> <p>Then there's the issue of cost. While generating and storing data is increasingly cheap, hiring a company like Palantir to make sense of it isn't.</p> <p>Coca-Cola "balked" at the contract Palantir presented, which called for $18m in fees in the fifth year of the deal.</p> <p>And Kimberly-Clark, when presented with an agreement that also called for $18m per year in fees, also got cold feet. According to an email from a Palantir executive, the CPG giant "wanted to see if they could do it cheaper themselves."</p> <p>That makes sense. After all, if Big Data analytics can really move the needle in a big way, wouldn't companies like Coca-Cola and Kimberly-Clark want it to become a core competency?</p> <p>Paying a third-party, one which may not have industry expertise and also faces staff turnover risk, might be easy, but it seems like a short-sighted strategy.</p> <h3>The Palantir response</h3> <p>Palantir has taken steps to address staff turnover issues and suggests that its turnover is expected given that its "really strong culture" isn't for everyone.</p> <p>It can also point to seemingly successful relationships like those it has with oil company BP, bank Credit Suisse, credit card processor First Data and insurer Axa.</p> <p>Palantir's 10-year deal with BP could be worth more than $1.2bn.</p> <p>One Palantir business development rep felt that executives at American Express were "low-vision," a reminder that shared vision and values, not just technology and smarts, can make or break relationships for firms like Palantir and their clients.</p> <p>Finally, <a href="https://www.quora.com/What-does-Joe-Lonsdale-think-of-BuzzFeeds-Inside-Palantir-article">according to</a> Palantir co-founder Joe Lonsdale, who is no longer involved in the company's day-to-day operations:</p> <blockquote> <p>[Palantir] had been expansive in who it worked with and then scaled with the areas that made sense and were aligned with its ethos and goals. Of course a few of its client relationships might not have worked out - if that wasn't the case it would have meant they weren't exploring new industries properly.</p> </blockquote> <p>That is perhaps the key take-away for brands exploring their Big Data opportunities.</p> <p>As the number of third parties offering products and services that promise to turn Big Data into big bucks grows, brands should remember that many of these firms are themselves trying to figure out their own markets and will experiment accordingly.</p> <p>The obvious risks this creates doesn't necessarily mean that brands should bring their Big Data efforts completely in-house.</p> <p>But the realistic, forward-thinking ones probably won't put all their eggs in one basket either.</p> tag:econsultancy.com,2008:BlogPost/67759 2016-05-09T15:15:00+01:00 2016-05-09T15:15:00+01:00 Expanding your marketing playbook with predictive analytics John Kelly <p>For some people, their feelings about those horses and what they say about the brand transcends more logical price or taste comparisons.</p> <p>While categories with basic emotional appeals may always exist, today’s customer is more sophisticated and the marketing necessarily more complex.</p> <p><iframe src="https://www.youtube.com/embed/dlNO2trC-mk?wmode=transparent" width="560" height="315"></iframe></p> <p>Simultaneously, there is great pressure on chief marketing officers to deliver organic growth for their companies. The playbook must have more pages!</p> <p>One of those new pages is <a href="https://econsultancy.com/blog/64743-predictive-analytics-machine-learning-and-the-future-of-personalization/">predictive analytics</a>, which empowers marketers by providing insights into customer behavior and how certain strategic decisions can increase sales.</p> <p>Those who can best predict the customer and act on those insights will ultimately take market share from their less attuned competition.</p> <p>In fact, <a href="https://econsultancy.com/blog/67315-eight-tips-for-getting-corporate-buy-in-for-data-analytics/" target="_blank">83% of marketers</a> say they now use predictive metrics to build competitive experiences and make smart product decisions.</p> <h3>Predictive Analytics X's &amp; O’s</h3> <p>Predictive analysis of data allows you to play out different “what if” scenarios so you can develop campaigns that achieve optimal growth.</p> <p>Getting more specific, here are four predictive analytics plays CMOs might consider, depending on their business:</p> <h4>1. Sentiment analysis</h4> <p>A sentiment analysis identifies and categorizes the opinions expressed in a section of text to determine whether the writer’s attitude is positive, negative, or neutral.</p> <p>If customers post product reviews on their blogs or discuss your services on social media, a sentiment analysis will dissect their text for clues about their satisfaction levels.</p> <p>Scoring the relative sentiment expressed in mediums from social media commentary to call center transcripts, and comparing peaks and valleys and their drivers over time is powerful.</p> <p>It essentially transforms the idea of “<a href="https://econsultancy.com/reports/voice-of-the-customer-listen-measure-act/">voice of the customer</a>” from a concept to a real tool to sharpen campaigns, products, and customer service operations. </p> <h4>2. Hedonic analysis</h4> <p>Hedonism means the pursuit of self-indulgence, so it follows that a hedonic analysis studies consumers’ preferred features.</p> <p>Instead of guessing what people want, you identify which options are most attractive to them. If you’re an automotive manufacturer, your next model could include dozens of feature combinations.</p> <p>Understanding which combinations will achieve the highest value in the marketplace is useful for optimizing product offerings to best match customer desires and, ultimately, demand. </p> <h4>3. Credit analysis</h4> <p>Credit rating agencies originated in the early 1900s, making credit the oldest form of predictive analysis and a basic tenet of modern businesses.</p> <p>Whenever you offer financing, you’re asking, “Does the customer have both the good faith and the ability to pay?”</p> <p>If you can tweak your approval formulas to qualify more candidates without triggering higher default rates, you’ve mastered organic growth creation. Someone figured that out already, right?</p> <p>The difference today is the availability of abundant supplemental behavioral data that, it turns out, have a lot to do with understanding whether the customer will be a faithful creditor.</p> <p>Social media patterns, cellphone ownership, and usage are just a few ways credit can be predicted more reliably, which is very useful in markets that don't have traditional credit-prediction methods like FICO scores.</p> <h4>4. Churn propensity analysis</h4> <p>Another behavior prediction measurement, churn propensity analysis, anticipates how likely customers are to cancel their annuity contracts.</p> <p>This metric is perfect for <a href="https://econsultancy.com/blog/66034-the-pros-and-cons-of-subscription-ecommerce-models/" target="_blank">subscription-based businesses</a> as well as credit card providers, media brands, cellphone carriers, and direct response companies.</p> <p>If you know which customers will leave and when, then you can court them to remain with you by employing preventive marketing measures.</p> <p>Altered service options and tailored discounts help you avoid losing their business long-term.</p> <p>One rule of marketing that hasn’t changed is that it’s less expensive to <a href="https://econsultancy.com/blog/11051-21-ways-online-retailers-can-improve-customer-retention-rates/">retain a customer</a> than to acquire a new one.</p> <h3>Use with caution</h3> <p>Be careful with the possibilities enabled with the new playbook.</p> <p>Predictive analytics enable you to engineer “wins” such as mastering <a href="https://econsultancy.com/blog/65327-why-dynamic-pricing-is-a-must-for-ecommerce-retailers/">dynamic pricing</a>, increasing profits, and retaining more customers, but those victories aren’t achieved by numbers alone.</p> <p>The most successful CMOs marry in-depth metrics with original thinking to deliver standout campaigns. </p> <p>“Data analytics — big data — is not a substitute for innovation. It’s not a substitute for creative thinking and leadership,” said Sandeep Sacheti, executive vice president for customer information management and operational excellence at Wolters Kluwer.</p> <p>CMOs who can tap into both the logical and creative will achieve greater professional success today and in the future.</p> <p>Anthony Scriffignano, senior vice president and chief data scientists at Dun &amp; Bradstreet, echoed this idea: “The environment is busy and chaotic. Marketers are under a lot of stress and pressure to deliver the growth,” he said.</p> <blockquote> <p>This new data era moves away from the creative and the gray to the very specific, the black and white, the binary. They’re not going to deliver that growth with data-driven analytics unless they take the careful time and process to do it right.</p> </blockquote> <h3>Know your data strategy</h3> <p>With some success, perhaps in the form of a pilot project, you’ll want to get much deeper.</p> <p>Consider your overall scheme if you and your company are going to be real data players.</p> <h4><strong>1. Get intimate with your data</strong></h4> <p>Verse yourself in your analytics and look for gaps in the numbers.</p> <p>It’s worth identifying your current analytics state and your ideal. What would the perfect setup look like, and which metrics do you need to get there?</p> <p>But be discerning about which numbers you emphasize. You may not need every metric available to you, and your vision for how to use your data should evolve as your company grows.</p> <p>Blind pursuit of an ideal state that doesn’t match your organization is wasteful, so evaluate which information moves you toward your goals.</p> <p>As you determine the most valuable threads, you’ll have to make spending decisions about how to gather, validate, integrate, and analyze the right data.</p> <h4><strong>2. Think scientifically</strong></h4> <p>You don’t need to be <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">a data scientist</a> yourself to use analytics effectively, but you do need to hire some.</p> <p>Point-and-click technology is not an honest replacement for the hard work data scientists perform to root out causal relationships, and it creates a false sense of control over the numbers.</p> <p>Your competitors are already catching on to the importance of data scientists and going after top talent via direct hires or consultancies.</p> <p>You can’t afford to fall behind in this area, and data science is not a DIY game. Recruit the best data team you can find by offering candidates big, bold projects and a culture that values their work. </p> <h4><strong>3. Know what matters to you</strong></h4> <p>Do you know your five most impactful marketing data metrics? I don’t mean in concept; I’m talking about hard numbers. Have you tested your data, assessed its weaknesses, and identified statistically proven causal relationships?</p> <p>For instance, you might find that if you drop service wait times by 10%, you can increase prices by 5%.</p> <p>The data might indicate that changing a single term of your offering like the subscription cancellation policy and its accessibility could reduce customer churn by 10%.</p> <p>Make a plan to discover the undeniable facts of your business performance. As a leader or marketer, you must deal in proven, impactful metrics, or what I call the lowest-hanging analytical fruit. </p> <p>Predictive data and <a href="https://econsultancy.com/events/future-of-digital-marketing-london/">the future of marketing</a> are intertwined. “Data analytics is going to be standard, expected practice in every business function and business model,” Sacheti said.</p> <blockquote> <p>Just like HR is a function that exists everywhere in every company and finance exists everywhere in a company, big data scientist is going to be a profession that’ll be expected in every company.</p> </blockquote> tag:econsultancy.com,2008:BlogPost/67758 2016-04-29T14:01:05+01:00 2016-04-29T14:01:05+01:00 Big data tools & techniques successful CMOs need to know John Kelly <p>Take the entertainment and ticketing business.</p> <p>Andrew Rentmeester, senior vice president of revenue planning and operations at The Madison Square Garden Company, sees it this way:</p> <blockquote> <p>What the CMO uses now (and will always need) are simple scrapes of the ticket inventory system and what’s sold today. If you don’t have that, you really don’t know where you are in the business.</p> </blockquote> <p>Rentmeester adds that, even though it’s just an inventory system for tickets, an old-school Excel sheet works. While it isn’t ideal, it’s needed, nonetheless.</p> <p>Consider the marketing of tires. Tire manufacturers struggle to understand the market value of their brand and products.</p> <p>Typically, they web-scrape prices listed by local retailers and make rough estimations of the value of their brand versus benchmarks.</p> <p>Even the application of this crude method of <a href="https://econsultancy.com/blog/67699-how-online-retailers-can-improve-price-optimization-strategies/">price optimization</a> improves margins in a very competitive market sector. </p> <p>Shawn O’Neal, vice president of global marketing data and analytics at Unilever, suggests that tool exploration begins before its analysis:</p> <blockquote> <p>You have to know what you want before you build the database with data tools. You have to understand what attributes you’re going to scale in the hierarchy and segmentation before you ever build the database.</p> <p>If you don’t have the database built for the data, you don’t capture it.</p> </blockquote> <h3>Big data tools on the CMO’s wish list<br> </h3> <p>Rentmeester says he would like to start his morning in this way:</p> <blockquote> <p>Marketing leadership and I need a dashboard concept that we look at and know what the overall state of our key marketing levers are so that we can use that to drive the business forward.</p> </blockquote> <p>He likes the idea of a type of dashboard mechanism that allows for quick insight into key sales drivers, year-to-date numbers, and prior-year numbers (and one that also provides a way to view the revenue funnels in parallel).</p> <p>For example, if you have a website and different digital marketing strategies for that website, you want to know which method is working best, how they are stacking up against each other and, most importantly, how they are relating back to sales. </p> <p>However, in a world where large, monolithic-type reporting engines still exist, Rentmeester finds that, by the time a report is generated, it’s already out of date because the questions have changed.</p> <p>If he wants to see one specific metric — such as the average ticket price in Section 340 for Knicks games — how does he get that metric quickly?</p> <p>He argues that the reporting structure isn’t usually oriented to answer that question at that point in time, which could prove to be a challenge for a CMO.</p> <p>He’s looking for a tool that allows him to get granular and to get as much data as he needs in order to make use of it as quickly as possible.</p> <h3>Tools or Techniques?<br> </h3> <p>Other executives claim there is more value to knowing a few standard analytical techniques above any one tool that should be leveraged.</p> <p>Sandeep Sacheti, executive VP at Wolters Kluwer, suggests the following “big five”.</p> <h4>1. A/B Testing</h4> <p><a href="https://econsultancy.com/blog/67249-a-beginner-s-guide-to-a-b-testing/">A/B testing</a>, as the name implies, involves a comparison or test. It is the simplest testing method possible, measuring the effectiveness of one path versus another.</p> <p>Some ideas for areas to A/B test include webpage design or timing of messages in an email campaign. One can test creative and response rates to specific offers as well.</p> <p>Although most marketers are well-informed of this basic technique, in the rush to get the job done and get to market, fewer employ it than one would expect.</p> <h4>2. Net Promoter Score (NPS)</h4> <p>NPS is an inherently simple concept to measure customer loyalty: It’s a tally of whether customers would recommend your business to others.</p> <p>While it might seem crazy that entire consultancies have been testing and reporting something as simple as the NPS concept, that number leads to the need for real strategic changes if not at its ideal level.</p> <p>Again, start simple: Are you asking your customers for it? And have you tracked how your score moves over time?</p> <h4>3. Customer Lifetime Value (CLTV)</h4> <p>Here’s another simple metric, but this one accomplishes a complex transformation — getting an organization to shift its priorities from quarterly profits to the health of customer relationships.</p> <p><a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">CLTV</a> is most applicable to businesses that can successfully achieve an annuity from their clients (think financial services, for example).</p> <p>Beyond that, it answers this question: “What is this customer worth to me?” to which there are three more consequential questions:</p> <ul> <li>Should I encourage this customer’s business, or let it go? </li> <li>If I want to encourage his or her business, how likely is he or she to continue?</li> <li>And what do I need to invest to keep that annuity going?</li> </ul> <h4>4. Recency, Frequency, Monetary (RFM) Analysis</h4> <p>This is the most basic method of measuring CLTV.</p> <p>Scoring of all three — combined with a weighting of each to reflect the specific importance of each to your business — is the essence of this simple tabular calculation.</p> <h4>5. Customer Wallet Estimation</h4> <p>Maintaining a base level of analytics ensures you know what your customer spends with you in a given period.</p> <p>However, in a competitive marketplace, do you know how much money that customer is spending in that same time period across your industry?</p> <p>This measure involves more advanced statistical analysis and some outside market audit data, including a small sample of customer spend with competitors.</p> <p>A reliable marketwide number can be derived from this small sample by employing rules of statistics.</p> <p>Provided in context, knowledge of this number is good for relative comparison combined with other data.</p> <p>For example, are some of your marketing dollars achieving as much customer money as your competitor’s marketing dollars are? </p> <h3>Making the most of the CMO’s big data toolkit<br> </h3> <p>What needs to happen to make these tools most effective for CMOs today and in the future?</p> <p>O’Neal insists that setting up big data infrastructures with big groups of people and big budgets is no longer the way to go.</p> <p>Analytics should be built to empower people to do work in a demand-driven way — and not in the way IT systems were built in the 1990s.</p> <p>He goes on to agree with Rentmeester above:</p> <blockquote> <p>We build minimum requirements that are highly alterable, not capacity models that hope demand will grow and become what you envision. Because what you envision today is changing so rapidly that, tomorrow, it’s out of date.</p> </blockquote> <p>Rentmeester, however, believes that more people are the answer to actually marshal the data and make it quickly usable.</p> <p>A large staff, with enough data sense and business acumen to drive business by the numbers, can achieve the right balance of analytical agility, innovation, and most importantly, actionable results.</p> tag:econsultancy.com,2008:BlogPost/67668 2016-04-04T14:25:51+01:00 2016-04-04T14:25:51+01:00 Data can be toxic, here's how companies should handle it Patricio Robles <p>Schneier <a href="https://www.schneier.com/blog/archives/2016/03/data_is_a_toxic.html">blames</a> the "hype cycle of big data" on the risks that have been created...</p> <blockquote> <p>Companies and governments are still punch-drunk on data, and have believed the wildest of promises on how valuable that data is.</p> <p>The research showing that more data isn't necessarily better, and that there are serious diminishing returns when adding additional data to processes like personalized advertising, is just starting to come out.</p> </blockquote> <p>He also points out that many companies underestimate the risks and impacts of data breaches and overestimate their ability to mitigate against them.</p> <p>And in some cases, Schneier believes, companies choose to take unreasonable risks with data because they're encouraged to.</p> <p>"The culture of venture-capital-funded startup companies is one of extreme risk taking," he argues.</p> <blockquote> <p>[These companies] are so far from profitability that their only hope for surviving is to get even more money, which means they need to demonstrate rapid growth or increasing value.</p> <p>This motivates those companies to take risks that larger, more established, companies would never take. They might take extreme chances with our data, even flout regulations, because they literally have nothing to lose.</p> </blockquote> <h3>Realistic versus unrealistic solutions</h3> <p>Not surprisingly, as a security expert and privacy advocate, Schneier wants greater regulation of data "collection, storage, use, resale and disposal" and even suggests that certain business practices that involve "surveilling people" be made illegal.</p> <p>Ostensibly, this includes much of the activities associated with digital advertising.</p> <p>While greater regulation around data is indeed likely given the growing number of costly breaches, it's highly unlikely that large swaths of the big data economy will be rendered illegal.</p> <p>Even so, companies shouldn't ignore Schneier's arguments.</p> <p>Data is digital black gold and it's similar to the black gold that comes out of the ground. That black gold, when controlled, fuels the industrial economy, but when spilled, is the source of environmental disaster.</p> <p>Likewise, digital black gold <a href="https://econsultancy.com/blog/67674-what-are-first-second-and-third-party-data/">fuels the internet economy</a>, but can also be the source of disaster when it leaks.</p> <h3>What companies should do</h3> <p>So what should companies do to avoid disaster? Here are several suggestions.</p> <h4>1. Develop a data strategy</h4> <p>In most cases, companies aren't collecting more and more data because storing it is so cheap. Many are storing all the data they can get their hands on because they don't have <a href="https://econsultancy.com/blog/67296-how-to-create-a-clear-data-strategy-for-your-business/">a data strategy</a>.</p> <p>Without a strategy, decision makers will favor storing any and all data in the hope that they might develop a use for it later on.</p> <p>In reality, "we don't know if we'll need it therefore we'll keep it" is typically a poor excuse for data collection and retention, the result of laziness and not true lack of knowledge.</p> <h4>2. Develop data acquisition and retention policies</h4> <p>With a data strategy in place, companies can create sensible data acquisition and retention policies.</p> <p>Such policies can ensure that they have the data they need to meet business goals while reducing the risk that they're storing data that they don't need, or storing data in ways that are unnecessarily risky.</p> <h4>3. Treat data differently</h4> <p>Sensible data and retention policies will inherently reflect the fact that data differs in nature.</p> <p>For example, data that contains personally identifiable information (PII) isn't the same as data that doesn't contain PII, and should be handled and stored differently as a result. </p> <h4>4. Embrace compliance and risk management</h4> <p>Certain types of data are already subject to regulation.</p> <p>For instance, in the US, some health information is protected by <a href="https://econsultancy.com/blog/67498-digital-media-vs-hipaa-violations-risking-your-reputation-in-healthcare/">Health Insurance Portability and Accountability Act (HIPAA) rules</a>.</p> <p>Companies subject to these rules should see compliance as an opportunity to ensure that they're taking all the steps they can to secure their data.</p> <p>Even companies that aren't subject to government regulation have the opportunity to embrace data security through risk management.</p> <p>It's now possible to acquire data breach insurance, and companies that opt to do so can use the process as a means to implement data security best practices.</p> tag:econsultancy.com,2008:BlogPost/67650 2016-03-22T15:35:48+00:00 2016-03-22T15:35:48+00:00 Why marketers must move from data to insight to action Kym Reynolds <h3>Real-time contextualisation is here</h3> <p>Your customers are engaging with your business across an increasing number of touchpoints – websites, social media, in-store, mobile and tablets.</p> <p>But regardless of how they engage, they expect a customised, personalised, and consistent experience. This expectation continues to be a challenge for businesses, which have to manipulate enormous amounts of data to try to understand how to effectively engage each individual.</p> <p>In this landscape, data needs to be collected and analysed in real-time, and any data needs to be instantly actionable, preferably in a predictive way.</p> <p>Without these capabilities, marketing messages are less compelling and response rates fall. Conversely, those brands that embrace real-time contextualization through powerful and flexible big data see huge uplifts in campaign responses.</p> <p>Marketers are now recognising the imperative of these omni-channel, contextualised communications with their prospects and customers.</p> <p><em>The omnichannel experience - Burberry was a pioneer of 'clientelling' in-store to build customer data.</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0002/9928/burberry-regent-street-technology-store-0-blog-full.jpg" alt="burberry" width="615" height="408"></p> <h3>There's no excuse for generic experiences</h3> <p>The happy customer isn’t just a customer who wishes to purchase more, it’s a customer that is retained, upsold and – perhaps most importantly – the customer who becomes an advocate for your brand.</p> <p>Even so, how many times have you heard your peers and colleagues complain that they don’t have proper analytics capabilities, which means that they are limited in ROI view, optimisation and progressing the digital experience?</p> <p>Or that connecting all the activity and data across multiple channels and departments, and unifying them for monitoring measurement, evaluation and future marketing activity is challenging?</p> <p>And how about that disparate systems and data make it hard or impossible to personalise campaigns and gather, test and analyse customer data? </p> <p>In my mind those are pretty flimsy excuses. There are powerful customer and marketing analytics tools out there, and many will enable marketers to understand their customer’s behaviour not just by answering questions, but by asking ‘what can I do with this information?’</p> <h3>How well do you know your customers?</h3> <p>Can you answer the following questions?</p> <ul> <li> <p>Do you know how many people visited your stores, purchased, or left without buying?</p> </li> <li> <p>Do you know how long it takes for a customer to make a return purchase, and then another?</p> </li> <li> <p>Do you know when a customer becomes inactive or lapsed?</p> </li> <li> <p>Do you know what your most loyal customers look like and how to find more of them?</p> </li> <li> <p>Do you know how to apply what you learn about your customers – what/ when/ where – and turn that into personalised conversations?</p> </li> <li> <p>Do you know how to monitor changes in consumer behaviour and act on this quickly?</p> </li> <li> <p>Do you know how to use affinity reports to not only determine ‘the knowns’, ie. people who buy this also buy that, but also ‘the unknowns’ – affinities which don’t conform to a set behavior but proffer new marketing opportunities, through those affinities, brand, product or otherwise?</p> </li> <li> <p>Do you know how to shadow customers to determine when the right time is to contact them – learning their propensity to buy? </p> </li> <li> <p>Do you know how to track trending behaviours, such as identifying ‘repeat refunders’ or repeat returners – for example customers that buy three items online and return two in-store?</p> </li> </ul> <p><em>Time-tested models such as <a href="https://econsultancy.com/blog/64481-finding-your-best-customers-with-the-rfm-matrix">RFM</a> are all about actionable data.</em></p> <p><em><img src="https://assets.econsultancy.com/images/resized/0004/5405/rfm_matrix_with_values-blog-full.png" alt="rfm matrix" width="615" height="653"></em></p> <h3>Marketers need to be able to act on data</h3> <p>Marketers need to be able to act on data not just pore over numbers in spreadsheets – there is a difference between a data question and a data driven insight with targeted call to action.</p> <p>In my mind, marketers need guidance about what is relevant - what are their customer indicators, what are their churn indictors - and how to action all of this in an automated fashion.</p> <p>Basic reporting, such as how many customers shopped online, how many abandoned a sale etc arguably add to the volume of data out there, but it just adds to the information that marketers struggle with.</p> <p>As a marketer, you should ask yourself the question – if for example you knew that 40% of customers who shopped in the last 3 months were new to your brand, and out of those, 10% have bought again and most within two weeks of their initial purchase – would that be a valuable insight?</p> <p>And if you could then use a tool that identifies all those new customers who have not repurchased by two weeks and automatically re-engage with them leveraging relevant content using your marketing cloud software, would that be beneficial to your business?</p> <p>If the answer is yes you need to consider using the technology that is out there, to help move you towards the ultimate goal of providing only relevant and timely content and marketing messages to each of your prospects and customers.</p> <p>Remember that building your marketing strategy on a solid customer data foundation will pay dividends for years to come.</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/67640 2016-03-11T11:23:00+00:00 2016-03-11T11:23:00+00:00 Nine delightful digital marketing stats from the past week Jack Simpson <p>Well thanks to my pre-emption of your judging ways this intro will now be completely free from humour and laced instead with the kind of bitter resentment I usually reserve for people who stand on the left side of the escalator on the Tube.</p> <p>So there. </p> <p>This week we’ve got a good one lined up, with some reassuringly positive findings around women in business along with lots of lovely stats about digital transformation, generation Z, and much more. </p> <p>Here goes...</p> <h3>Optimising CX is the biggest opportunity for digital transformation</h3> <p>29% of respondents in our recent <a href="https://econsultancy.com/blog/67596-digital-transformation-in-the-retail-sector-challenges-opportunities">Digital Transformation in the Retail Sector report</a> say that the ability to optimise the customer experience is the most exciting opportunity when it comes to digital transformation in 2016. </p> <p>A fifth (20%) say data-driven marketing that focuses on the individual is the biggest opportunity, while 11% say cross-channel marketing. </p> <p><em><strong>Q: Which one area is the single most exciting opportunity for your organisation in 2016?</strong></em></p> <p><img src="https://assets.econsultancy.com/images/0007/2511/Single_most_exciting_op_Retail.JPG" alt="" width="600"></p> <h3>84% see data as integral to business strategy</h3> <p>More than four-fifths of organisations see data as an integral part of forming a business strategy and believe they could increase sales by up to 29% if their <a href="https://econsultancy.com/reports/value-exchange-from-data">customer data</a> was fully accurate, according to a new infographic by Experian. </p> <p>Check out the infographic below for more stats:
</p> <p><a href="https://www.edq.com/uk/resources/infographics/dealing-with-the-deluge-humanising-your-data-strategy/"><img src="https://assets.econsultancy.com/images/0007/2885/Screen_Shot_2016-03-10_at_15.15.07.png" alt="Data in business strategy infographic" width="600"></a></p> <h3>91% of UK businesses will ‘no longer be competitive’ by 2020</h3> <p>More than nine in ten UK employees believe their businesses will no longer be competitive by 2020 if they continue in their current format, according to <a href="http://www.infomentum.com/uk/solutions/business-solutions/Business-2020/index.htm?utm_source=pr_origin&amp;utm_medium=pr&amp;utm_campaign=Business%202020">a new report by Infomentum</a>. </p> <p>Other key findings include: </p> <ul> <li>50% say firms will have to invest in new technology in order to keep up.</li> <li>37% expect to be allowed to work from home. </li> <li>61% believe their jobs will be more automated by 2020.</li> </ul> <h3>Generation Z not on mainstream social media sites</h3> <p>Those born after 1995 – commonly referred to as ‘generation Z’ – make up a quarter of the UK population, and prefer to use non-mainstream social networks such as Snapchat, Secret and Whisper, according to a new infographic by Oliver. </p> <p>Check out the infographic below for more stats:</p> <p><a href="http://www.oliver.agency/en/news/infographic-who-are-generation-z/"><img src="https://assets.econsultancy.com/images/0007/2886/Screen_Shot_2016-03-10_at_16.34.03.png" alt="Generation Z infographic" width="600"></a></p> <h3>Companies with strong reputations have twice as many women in senior management</h3> <p>Companies that are most admired by their industry peers have a higher proportion of female leaders, according to new research by Weber Shandwick. </p> <p>Other key findings include:</p> <ul> <li>10.9% of senior executives in the world’s 500 largest companies by revenue are women.</li> <li>Of those companies, not one has an equal representation of men and women on their senior management teams.</li> <li>Almost four in 10 companies (37.6%) have an all-male senior leadership team.</li> </ul> <h3>Women driving UK economic growth</h3> <p>There are 762 female-led companies with revenue between £1m – £250m in the UK, experiencing median annual growth of 30%, according to a new infographic by Founders4Schools.</p> <p>Check out the infographic below for more stats:</p> <p><a href="https://www.founders4schools.org.uk/women/infographic/#/"><img src="https://assets.econsultancy.com/images/0007/2887/Screen_Shot_2016-03-10_at_17.09.58.png" alt="Women driving UK economic growth infographic" width="600"></a></p> <h3>66% of marketers now driving IT purchase decisions</h3> <p>Two-thirds of marketers are now calling the shots when it comes to purchasing to marketing software, according to a new study by Squiz. </p> <p>Other key findings include:</p> <ul> <li>83% of respondents say they use a CMS platform, 77% an analytics platforms and 62% a CRM platform.</li> <li>Only 45% believe that marketing software purchasing decision lie with the IT Manager.</li> </ul> <h3>UK closer to Japan than US when it comes to online behaviour</h3> <p>The behaviour of UK web users bears more resemblance to that of Japanese and French consumers than it does to those in the US, according to new research by Oban Digital. </p> <p>Brazilian and Indian consumers share a perception of what a typical computer brand site should look like and how the use of images enhances the user experience.</p> <p>France, Japan and the UK share the same view of what makes a page global or local, with local pages being seen as more trustworthy by this group. These three countries also prefer websites with plenty of product information.</p> <h3>2m Brits visited subscription box sites in last three months</h3> <p>Millions of people have visited <a href="https://econsultancy.com/blog/66034-the-pros-and-cons-of-subscription-ecommerce-models/">subscription box sites</a> such as Graze of Birchbox in the UK in the last few months, according to new figures from Hitwise, a division of Connexity.</p> <p>Other key findings include:</p> <ul> <li>Almost half of shoppers use their mobile to research subscription box offers.</li> <li>Visitors are most often women, aged between 25-34, with above-average incomes.</li> <li>30.6% begin their journey to a subscription box via a search engine.</li> </ul> <h3>Timely and vaguely relevant stat of the week… </h3> <p><strong>On this day in 1993,</strong> Janet Reno was unanimously confirmed by the US Senate to become the first female attorney general.</p> <h3>For lots more up-to-date statistics…                                           </h3> <p>Download Econsultancy’s <a href="https://econsultancy.com/reports/internet-statistics-compendium/?utm_source=Econ%20Blog%20&amp;utm_medium=Blog&amp;utm_campaign=BLOGSTATS">Internet Statistics Compendium</a>, a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media.</p> <p>It’s updated monthly and covers 11 different topics from advertising, content, customer experience, mobile, ecommerce and social.</p> tag:econsultancy.com,2008:BlogPost/67606 2016-03-04T09:58:47+00:00 2016-03-04T09:58:47+00:00 How O2 achieves creativity through data Jack Simpson <p>The first talk came from O2’s Head of Digital Excellence, Nick Adams, and VCCP’s Innovation Director, Adrian Gans. </p> <p>The two of them discussed how they believe <a href="https://econsultancy.com/blog/67554-2016-the-year-of-programmatic-creative">creativity absolutely has a place in programmatic advertising</a> and ran through some examples of where O2 has demonstrated this in its own campaigns. </p> <p>Here are some of the highlights from the talk...</p> <h3>Beyond the fear and jargon</h3> <p>O2 naturally has a huge number of data collection points, from behaviour in-store to profiling people based on their My O2 account activity. </p> <p>This enables O2 to carry out very precise personalised targeting, which has led to the brand spending 70% of its total display budget on programmatic as of last year. </p> <p>But despite automating so much of its advertising, Gans insists programmatic isn’t a threat to creativity.</p> <blockquote> <p>When something is characterised as machine or robotic, it’s automatically seen as a threat. But we’re looking to go beyond the hype.</p> <p>We’re a creative agency but we’re embracing programmatic.</p> </blockquote> <p>Half the problem, Gans argues, is the sheer amount of jargon being thrown around that makes the channel seem overly complex. </p> <p>“We want to talk about the work, not just the tech,” he says. “You have to embrace a certain amount of complexity but we should be talking about ‘what’ rather than ‘how’.”</p> <p>Gans cited some stats that certainly support the idea that programmatic is full of future opportunities. </p> <p>According to a recent eMarketer study: </p> <ul> <li>52% of total ad spend is on digital.</li> <li>50% of that is on search (which, Gans says, is programmatic in nature but not particularly creative). </li> <li>40% of digital adspend goes on display.</li> <li>Of that 40%, 70% is programmatic.</li> </ul> <p>It is that 70% that Gans refers to as the ‘canvas’ for truly creative programmatic ad campaigns. </p> <h3>Examples of O2's programmatic campaigns</h3> <p><strong>1. Mobile</strong></p> <p>The challenge here was to take O2’s 'tariff refresh' TV ad and make it relevant and engaging for a mobile audience. </p> <p>So it created a system whereby it could take data about mobile usage – device, location, and so on – and offer users specific messages based on that profile. </p> <p>O2 could tell a mobile user the current recycling value of their phone, the best offer for an upgrade, what people like them generally preferred upgrading to (incorporating an element of social proof), and where the nearest store was.</p> <p><em><strong>Adrian Gans</strong></em></p> <p><img src="https://assets.econsultancy.com/images/0007/2608/Screen_Shot_2016-03-03_at_13.08.22.png" alt="O2 programmatic campaign" width="600"></p> <p>It created more than 1,000 versions of the video ad, which integrated in real time with the user’s device and location. </p> <p><strong>The results:</strong></p> <p>The personalised ads performed 128% better in terms of click-through rate (CTR). </p> <p>“We know it works,” says Gans. “This sort of thing is going to be the bedrock for what we’re developing in 2016.”</p> <p><strong>2. Social</strong></p> <p>O2 partnered with Facebook to segment its audience and target them with three different messages:</p> <ul> <li>Early upgraders.</li> <li>Out of contract. </li> <li>Approaching end of contract. </li> </ul> <p><strong><em>Nick Adams</em></strong></p> <p><img src="https://assets.econsultancy.com/images/0007/2609/Screen_Shot_2016-03-03_at_13.07.57.png" alt="O2 programmatic campaign" width="600"></p> <p>The differences between the ads were subtle, slight tweaks to the copy and images. But they definitely produced significant responses. </p> <p><strong>The results:</strong></p> <p>Overall the personalised ads achieved 49% lower cost per order (CPO). In the early upgrade segment the CPO reduced by 61%.</p> <p>Adams summarised the campaign by saying:</p> <blockquote> <p>Subtle different messages can actually drive results.</p> </blockquote> <p><strong>3. Video</strong></p> <p>When O2 was a key sponsorship for the international sporting event that must never be spoken of again (Rugby World Cup 2015, if you’re still wondering), it wanted to come up with a powerful <a href="https://econsultancy.com/blog/67221-the-20-most-shared-video-ads-of-2015">video campaign</a> that actually prompted people to engage. </p> <p>Personalisation was the answer. So it pulled in data from its avatar creation website and brought it all together to create a collection of ads. </p> <p>Here is the non-personalised version of the ad:</p> <p><iframe src="https://www.youtube.com/embed/zXppMqUVMYE?wmode=transparent" width="640" height="360"></iframe></p> <p>When people watched the personalised version they would be addressed by their first name and invited to access the avatar site. </p> <p>The interesting part was that the tech could tell which part of the avatar creation process the user was at, so whether they had just started creating one and abandoned it or had got all the way to the end. The <a href="https://econsultancy.com/blog/66755-10-brilliant-examples-of-calls-to-action">call to action</a> would be personalised accordingly. </p> <p><img src="https://assets.econsultancy.com/images/0007/2610/Screen_Shot_2016-03-03_at_13.08.46.png" alt="Rugby World Cup O2 programmatic campaign" width="600"></p> <p><strong>The results:</strong></p> <p>An 11% increase in engagement levels. </p> <h3>Does too much data and automation stifle creativity?</h3> <p>The big question of the day came up in the Q&amp;A session at the end of this talk, and this is how Gans answered it:</p> <blockquote> <p>Of course there are limits to how far (automation) should, and could, go. There is always going to be a significant role for human imagination.</p> <p>But we don’t see it as a negative. It’s just bringing more experts in to support the creative process as a whole.</p> </blockquote>