tag:econsultancy.com,2008:/topics/strategy-operations Latest Strategy & Operations content from Econsultancy 2017-09-08T11:35:52+01:00 tag:econsultancy.com,2008:BlogPost/69407 2017-09-08T11:35:52+01:00 2017-09-08T11:35:52+01:00 Programmatic in 2017: An interview with Getintent’s George Levin Seán Donnelly <p>This is especially important as programmatic continues to evolve beyond basic retargeting to include digital out-of-home, TV and audio. The pace of change certainly isn’t making things easy for marketers to understand, let alone optimise.</p> <h3>Outsourcing programmatic versus managing in-house</h3> <p>With the rapid pace of change, it’s no surprise that many brands are using agencies to manage their programmatic activities rather than hiring their own teams. Of course brands may have their own reasons for this but it’s no surprise that one of the main criticisms of this approach is that it can negatively impact upon creativity.</p> <p>To discuss this, I caught up with George Levin, the CEO and co-founder of Getintent, a machine learning-powered programmatic platform. George had some interesting things to say about the state of ad tech in general and why he thinks programmatic should be managed in house.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/8831/george_levin_v.1-blog-flyer.jpg" alt="George Levin, the CEO and co-founder of GetIntent, a machine learning-powered programmatic platform" width="202" height="202"></p> <p><em>George Levin, the CEO and co-founder of Getintent</em></p> <p>Historically, there has been some uncertainty about what bringing programmatic in-house really means. For some, it involves contracting professional services from technology vendors; for others it’s about hiring the right people and integrating the right technology and aligning programmatic with other marketing activities.</p> <p>According to George: “Brands can only be creative when programmatic is brought in house. If you run everything in house, you can have some great creative. After all, who knows the brand and the customer better than client-side marketers?”</p> <p>George points out that this becomes especially important when it comes to running programmatic for more top-of-the-funnel activities: “Prospecting activities need more involvement from the client-side marketers. More hypotheses can be tested to find the best and most efficient ways for prospecting using programmatic buying.”</p> <p>George points out that unlike basic retargeting, prospecting needs to be based on specific brand knowledge and customer research. Client-side marketers are in the best position to do this.   </p> <h3>Programmatic skills<em> </em> </h3> <p>Econsultancy has hosted a number of conferences about programmatic in recent years. A common refrain from brand side marketers has been that the budget required to manage programmatic in-house has been too great and also that it’s too difficult to assemble the skills required.</p> <p>That opinion no longer holds true according to George: “Brands can run successful programmatic campaigns with a team of just three people – a tech guy who understands the mechanics, an ad operations person and an analytics person. In fact, a smart kid spending two years in the area could run everything.”</p> <h3 style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">Ad technology is becoming commoditised<strong><br> </strong> </h3> <p>In terms of the ad tech, George explains that ad technology has become commoditised: “You don't need super smart tech guys to run your own tech stack. There are plenty of white-label DSPs, DMPs and optimization tools. </p> <p style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">"Everyone can afford a white-label DMP. This can be used to activate first-party data and high quality data from third parties. The DMP could then be connected to a white-label DSP. To integrate vendors and make your own stack without engineering help you just need a marketer with some tech background. Every marketing team should have a tech person.”</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/8801/marketing_technology_landscape_2017_slide-blog-flyer.jpg" alt="" width="470" height="264"></p> <p><em>Source: <a href="http://chiefmartec.com/2017/05/marketing-techniology-landscape-supergraphic-2017/">Chief Marketing Technologist Blog</a> by Scott Brinker</em></p> <p>Levin even went so far as to say that clients of Getintent are willing to pay for full service programmatic management. That’s something that the company facilitates but he was very clear that he wants to focus on technology that he can sell to self service clients. The problem he says is that ad technology decision-makers are relying on agencies and vendors because they don’t understand how things work.</p> <p>And so despite everything that’s been written about the state of the programmatic ecosystem in terms of transparency, fraud and ambiguous metrics, it would appear that the elephant in the room (for some) may be an aversion to taking responsibility for managing programmatic in-house. It’s just easier to ask for full service.</p> <p>Whatever the issues with programmatic are, the budget being spent on it continues to grow. According to Zenithmedia [November 2016], programmatic trading accounts for 70% of the display advertising market in the US and the UK. The same research suggests that by 2018, the programmatic advertising market is expected to reach $64 billion. That’s a big chunk of change. </p> <h3><strong>Attribution</strong></h3> <p>Attribution isn't a new challenge. Despite the increasingly crucial role that attribution plays, <a href="https://econsultancy.com/reports/the-state-of-marketing-attribution" target="_blank">Econsultancy's State of Marketing Attribution report</a> found that less than a third of organisations carry out attribution across the majority of their campaigns. According to George, many marketers still use a last-click attribution model. </p> <p>Another is when marketers use an assisted post-click attribution model. This is when an order is attributed to all sources that generated a click within a post-click window. For example, marketers can attribute part of the value of a transaction to each of their traffic sources. In some cases, they might attribute greater value to the first or last click. In other cases, they might decide to attribute equal value to each source.</p> <p>The challenge is that some advertisers might end up assigning the same order to multiple sources, rather than weighting those sources to attribute a single order.</p> <p>This is one issue that George doesn't recommend trying to solve this problem in-house. He suggests that AI has a key role to play in handling this kind of problem: "There are a few some good vendors that can handle this problem who use AI to calculate the actual impact of each touchpoint and how it impacted the final transaction."</p> <p>In conclusion, the key points that George Levin wanted to get across are that programmatic can be used for upper funnel activies and that for it to work effectively, brands should examine how they can grow their own expertise to manage programmatic campaigns. The combination of brand knowledge, customer insight and the ability to customise programmatic campaigns will be key to success. </p> <h3>Getting on top of programmatic</h3> <p>Wherever you are in your programmatic journey, this year’s <a href="https://goo.gl/nJMlTI">Festival of Marketing</a> will play host to a stage dedicated to exploring the programmatic landscape. Attendees will learn how brands can keep abreast of new platforms for programmatic display, evolving technology to purchase and place adverts as well as the changing roles of agencies.</p> <p>Whether you want to explore programmatic trends or learn about managing programmatic strategically and tactically, we’ll have it covered. The <a href="https://goo.gl/nJMlTI">Festival of Marketing 2017</a> will take place on 4th and 5th October at Tobacco Dock on London.</p> <p><a href="http://www.festivalofmarketing.com/buy-a-ticket"><img src="https://assets.econsultancy.com/images/resized/0008/8802/festival_of_marketing_2017-blog-flyer.jpg" alt="Festival of Marketing 2017 Logo" width="470" height="118"></a></p> <p>As well as publishing <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/search/?only=BlogPost&amp;q=programmatic" target="_self">blogs on the subject</a>, Econsultancy also runs regular <a href="https://econsultancy.com/training/courses/programmatic/" target="_self">programmatic workshops</a> to help marketers cement their understanding of the programmatic landscape.</p> <p>If you already have an understanding of programmatic and want to look at some of the wider strategic use cases and challenges to be aware of, Econsultancy has published a number of reports on the subject:</p> <ul> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/" target="_self">CMO’s Guide to Programmatic</a></li> <li><a href="https://econsultancy.com/reports/programmatic-branding/" target="_self">Programmatic Branding, Driving Upper Funnel Engagement</a></li> <li><a href="https://econsultancy.com/reports/programmatic-marketing-beyond-rtb/" target="_self">Programmatic Marketing: Beyond RTB</a></li> <li><a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising/" target="_self">The Role of DMPs in the Era of Data-Driven Advertising</a></li> </ul> tag:econsultancy.com,2008:Report/4578 2017-09-04T17:18:00+01:00 2017-09-04T17:18:00+01:00 Tesco: Lessons in customer centricity <p><em>Tesco: Lessons in customer centricity</em> is part of a series of brand strategy briefings examining the marketing strategies and tactics of the most popular and searched-for brands. As part of this series, Econsultancy curates a selection of brand case studies and stories to help you improve your modern marketing efforts.</p> <p>Tesco is one of the largest retailers in the world, but faces mounting competition from discounters, including Aldi and Lidl. In this briefing, we explore how the supermarket has been putting the customer at the heart of its marketing strategy, an approach that has coincided with six consecutive months of sales growth.</p> <h2>What you'll learn</h2> <ul> <li>Tesco's shift towards ‘inside out’ marketing</li> <li>The evolution of the Clubcard loyalty scheme</li> <li>Tesco’s wine-centric approach to experiential marketing</li> <li>The brand’s trial of digital receipts</li> </ul> tag:econsultancy.com,2008:ConferenceEvent/900 2017-09-04T09:21:20+01:00 2017-09-04T09:21:20+01:00 Briefing: Marketing Trends, Challenges and Opportunities for 2018 <p>If you are going to start working on your marketing plan for 2018, you probably want to know what are the marketing trends, challenges and opportunities for next year. Professor Mark Ritson will be in Singapore on 13th October to share with you his predictions.</p> <p>Join Mark at this 1 hour briefing where he will highlight the key marketing trends, challenges and opportunities for 2018.</p> tag:econsultancy.com,2008:BlogPost/69368 2017-08-25T13:35:02+01:00 2017-08-25T13:35:02+01:00 Is WPP the canary in the coal mine for the global ad business? Patricio Robles <p>WPP CEO Martin Sorrell blamed his firm's woes on a "trifecta" of factors:</p> <ul> <li> <strong>Digital disruption.</strong> While Sorrell says that the "duopoly" of Google and Facebook isn't hurting WPP, the ways in which consumers are engaging with brands through digital channels are changing rapidly. A WPP investor document noted "content competition from Apple, Microsoft, Google, Facebook, Alibaba and Tencent." There's also Amazon. As CNBC's Patti Domm <a href="https://www.cnbc.com/2017/08/23/amazons-next-victim-worlds-biggest-ad-agency-lowers-sales-outlook.html">observed</a>, "Price wars and changing consumer tastes have turned some of the once mainstay brands into virtual commodities, with less supermarket shelf space and now less marketing clout."</li> <li> <strong>Zero-based budgeting.</strong> More and more companies are engaging in this practice, which essentially requires that every expense be justified. This generally encourages companies to lower costs, resulting in lower budgets for ads and agencies.</li> <li> <strong>Activist investors.</strong> The trend towards zero-based budgeting is in many cases being pushed by investors who want the companies they invest in to increase profits. To maximize their returns, some of these investors have pushed share buybacks and dividends over innovation and core business investments, which can obviously have an impact on ad budgets.</li> </ul> <p>By far, WPP has been most hurt by its CPG clients.</p> <p>As AdAge's Laurel Wentz <a href="http://adage.com/article/agency-news/packaged-good-giants-culprits-wpp-s-growth-downgrade/310212/">pointed out</a>, WPP's two largest clients, Procter &amp; Gamble and Unilever, are on a mission to cut their agency costs by half a billion dollars over the next five years.</p> <p>Unilever <a href="http://adage.com/article/agency-news/wpp-tumbles-unilever-announces-slashes-ad-costs/308589/">announced</a> earlier this year that it was cutting its ad output by 30% and Procter &amp; Gamble made headlines recently when it revealed that <a href="https://www.econsultancy.com/blog/69309-how-much-waste-is-in-the-digital-ad-market">it reduced spending on digital ads by more than $100m last quarter without impact on its growth rate</a>. According to P&amp;G CFO Jon Moeller, the reduced spend "reflected...a choice to cut spending from a digital standpoint where it was ineffective, where either we were serving bots as opposed to human beings or where the placement of ads was not facilitating the equity of our brands."</p> <h3>So is WPP sounding a warning to agencies or the entire ad industry?</h3> <p>Brian Wieser, a senior research analyst at Pivotal Research Group, told AdAge that "the thematic elements WPP is talking about are already of concern to every holding company." In other words, this isn't just about what's happening at WPP and its clients specifically.</p> <p>As Ian Leadbetter, co-founder Ruler Analytics, <a href="https://econsultancy.com/blog/69357-what-s-next-for-the-agency-model/">detailed earlier this week</a>, talk of the death of agencies is on the rise. But is the agency really on its death bed?</p> <p>As Leadbetter sees it, "there remains a need for experts—trusted sources to provide advice, guidance, assistance, and reassurance," but the agency model will have to change. For example, he argues that agencies will have to get smaller and more specialized and focused. He also suggests that agency compensation will be tied to revenue generation.</p> <p>Others have <a href="https://digiday.com/marketing/media-agencies-tweaking-pricing-models-win-big-clients/">made similar suggestions</a>.</p> <p>But it would be a mistake to assume that what ails WPP is exclusive to the agency world. Beyond the desire to cut agency costs and the cyclical ups and downs of ad spend, 2017 has seen important developments in the way advertisers are making decisions, particularly around their digital ad spend.</p> <p>As the digital ad market has matured, advertisers have become more savvy and now that they're intently focused on topics like <a href="https://econsultancy.com/blog/69245-native-ads-gain-as-advertisers-seek-brand-safety-away-from-programmatic">brand safety</a>, <a href="https://econsultancy.com/blog/69276-following-youtube-s-brand-safety-backlash-will-ad-relevance-take-center-stage">relevance</a>, <a href="https://econsultancy.com/blog/67246-advertisers-willing-to-shift-spend-over-viewability-report">viewability</a> and <a href="https://econsultancy.com/reports/the-state-of-marketing-attribution">attribution</a>, players in the global ad business would be wise to expect that agencies won't be the only ones vulnerable to advertiser pushes for accountability and efficiency.</p> tag:econsultancy.com,2008:Report/3008 2017-08-25T11:33:00+01:00 2017-08-25T11:33:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports (in addition to two sector-specific reports, B2B and Healthcare &amp; Pharma) across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are also available:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a><br></strong></li> <li><strong><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a></strong></strong></li> <li> <strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a></strong><strong> </strong> </li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> <li><strong><a title="Travel Statistics Compendium" href="https://econsultancy.com/reports/travel-statistics-compendium/" target="_self">Travel</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/69361 2017-08-24T14:23:52+01:00 2017-08-24T14:23:52+01:00 It's too easy to be snarky about digital marketing, but marketers must do better Ben Davis <p>I think so.</p> <p>There are few forms of online acquisition that are not subject to snarkiness... </p> <ul> <li>Content marketing has its exasperated and spiky detractors, despite the fact that, <a href="https://econsultancy.com/blog/67426-why-the-brands-as-publishers-trend-is-utter-nonsense/#blog_comment_979991">as Andrew Girdwood says</a>, "..brands are publishers now, whether they like it or not."</li> <li>Display advertising is derided as a nest of snakes (opacity, mark-up, non-human traffic etc.).</li> <li>Some think SEO is not such a big deal – simply get your content right, and the rest will follow.</li> <li>Microtargeting and personalisation are seen by others as error-strewn (particularly across devices) and <a href="http://adcontrarian.blogspot.co.uk/2016/03/data-vs-probability.html">inferior to 'big picture' marketing</a>.</li> <li>Social media and influencer marketing... well it hardly needs to be written.  </li> </ul> <p>Healthy scepticism is a good thing in any industry, of course – and it can also be entertaining. Ryan Wallman is retweeted in my Twitter feed because people recognise the banalities and platitudes that <a href="https://twitter.com/Dr_Draper/status/895555996231192576">he mocks</a>.</p> <p><a href="https://www.marketingweek.com/focus/mark-ritson/">Mark Ritson</a> and <a href="http://davetrott.co.uk/">Dave Trott</a> bring their experience to bear on the topic or campaign of the day – and this can involve more than a little plain speaking, particularly about digital. Though I would never presume to include myself in the same company as Ritson and Trott, I myself have written about <a href="https://econsultancy.com/blog/68529-10-horrible-words-phrases-that-consultants-need-to-cut-out/">consultancy jargon</a>, <a href="https://econsultancy.com/blog/68670-digital-fallacies-we-should-forget-in-2017">marketing fallacies</a> (<a href="https://econsultancy.com/blog/69129-five-marketing-fallacies-that-only-the-blinkered-believe/">twice</a>), and <a href="https://econsultancy.com/blog/67389-why-won-t-internet-fridges-go-away/">my hatred for smart fridges</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/8492/ritson.jpg" alt="ritson" width="615"></p> <p><em>Mark Ritson will be facing off with Byron Sharp at the Festival of Marketing (<a href="https://goo.gl/nJMlTI">tickets here</a>, by the way)</em></p> <p>But is there something more than healthy scepticism at play?</p> <p><a href="https://twitter.com/douchebagstrat">@Douchebagstrat</a> is a more damning Twitter favourite and Tom Fishburne (the Marketoonist) has <a href="https://www.marketingweek.com/focus/marketoonist/">a regular spot in Marketing Week</a> where he takes aim at the industry's doublespeak and flawed logic. </p> <p>Nobody is above criticism, but the world of marketing and advertising seems to be particularly ill at ease with itself.</p> <p>This was evident, I thought, when Mark Ritson <a href="https://www.marketingweek.com/2016/07/12/mark-ritson-maybe-its-just-me-but-shouldnt-an-expert-in-marketing-be-trained-in-marketing/">asked</a> 'Should marketing experts be better qualified?' i.e. should they have some formal marketing education. The reaction in the comments was quite defensive, almost as though many marketers have long anticipated being called out.</p> <p>All of this seems to suggest that a central part of digital marketing and advertising debate is about reminding ourselves of the levels to which we shouldn't sink.</p> <h3>Does digital marketing deserve this?</h3> <p>Marketing has long been scorned, way before 'digital', as the engine of capitalism. Bill Hicks had <a href="https://www.youtube.com/watch?v=Tvp97SMZc6M">an infamous routine</a> in which he referred to people in marketing and advertising as 'satan's little helpers' and 'ruiners of all things good', while suggesting they kill themselves.</p> <p><img src="https://assets.econsultancy.com/images/0008/8494/hicks.jpg" alt="hicks" width="400"></p> <p><em>Bill Hicks</em></p> <p>Doing a bit of research for this declamation, I found an <a href="http://wfoa.wharton.upenn.edu/perspective/artemzhiganov/">interesting article</a> by Artem Zhiganov which uses Hicks' routine as a hook. The article is titled 'Let’s Prove Bill Hicks Wrong: The Role of Advertising in the Future of Planet Earth.'</p> <p>The article says what perhaps all of the snark hints at – marketers must do better. Zhiganov argues that to do this, to engage customers that have an attention deficit, marketers must either entertain or be useful.</p> <p>Okay, pull marketing (such as SEO/PPC) is already particularly useful to consumers, and content marketing <em>may</em> entertain, but how can marketers go further than this? Zhiganov makes three points:</p> <h4>1. Moving from a download culture to an upload culture</h4> <p>Zhiganov quotes Gareth Kay: “stop communicating products and start making communication products”. For Kay this means "useful, entertaining or memorable not interruptive experiences," and "<em>ideas that can be advertised</em>, not <em>advertising ideas</em>."</p> <p><a href="https://www.slideshare.net/garethk/postdigitalbriefs2-august-2010">Kay's presentation</a> may be seven years old, but it feels fresh. It gives examples of some organisations getting people involved ("moving from a download culture to an upload culture"), such as Threadless, which allows users to score t-shirt designs. Kay also advocates for a politics that engages the voter, using not scaremongering ads but proper voter feedback, such as that encouraged by not-for-profit Vote for Policies, which allows users to do as its name suggests.</p> <p>Kay also discusses brands that have a social mission such as <a href="https://www.econsultancy.com/blog/68127-a-closer-look-at-dove-s-anti-sexism-mybeautymysay-campaign">Dove</a>. There's nothing wrong with a great advert, but shouldn't marketing go further?</p> <p><img src="https://assets.econsultancy.com/images/0008/8493/dove_real_beauty.jpg" alt="dove real beauty" width="600"></p> <p><em>An image from Dove's Real Beauty campaign</em></p> <p>In order to get consumers involved like this, marketers need to rid themselves of campaign mentality and begin to thing about long-term processes and ideology. Lean methodology, dynamic briefs and closer collaboration with agencies can forge a more considered approach. Agencies, Zhiganov says, can be the "driving force behind the fundamental shift from propositions (i.e., 'what does a brand have to say?') to brand roles ('how can a brand improve life?') as the key element of communication strategy."</p> <h4>2. Using gamification and emergent narratives</h4> <p>"Can we learn from video games?", Zhiganov asks, "where a story has a much more powerful emotional impact if it’s not scripted, but emerges from the user’s interaction with other users within a sandbox of certain rules."</p> <p>Can customers interact with each other in this way "with non-linear outcomes", leading to more attention and conversions? How can brands gamify their marketing?</p> <p><a href="https://econsultancy.com/blog/69043-the-15-biggest-moments-in-marketing-since-the-launch-of-the-iphone/">Nike Fuelband promised</a> this type of engagement, with users challenging each other and creating a feedback loop of sorts that played into Nike's marketing of its running and training gear.</p> <p><img src="https://assets.econsultancy.com/images/0008/6113/nike_fuelband.jpeg" alt="Nike fuelband" width="266" height="190"></p> <p><em>Nike Fuelband</em></p> <h4>3. Managing data</h4> <p>The promise of multichannel marketing and <a href="https://www.econsultancy.com/blog/68526-why-marketers-need-to-pay-attention-to-the-internet-of-things">the Internet of Things</a> has always been the prospect of understanding user behaviour. How can brands accumulate enough information about customers to be able to serve them best.</p> <p>If marketers can make so-called 'communication products', this can only create more useful data. The challenge is managing all this data to best effect.</p> <h3>What are the hygiene factors marketers must keep in mind?</h3> <p>Aside from the long-term strategic shift needed in marketing, what can marketers and vendors be doing day-to-day that helps their reputation? Here's a list of just some stuff, much of it concerned with the digital side of the industry:</p> <ul> <li>Diversity needs to be prioritised – gender, age, ethnicity and disability.</li> <li>Martech vendors and agencies need to get better at <a href="https://econsultancy.com/blog/68869-why-your-agency-s-value-proposition-probably-sucks-and-what-to-do-about-it/">explaining their propositions</a>.</li> <li>Agencies need to learn how to refuse work which doesn't fit with their heritage/expertise or where the client too often overrides the experts.</li> <li>Advertisers need to fight for transparency in advertising by withdrawing spend (<a href="https://www.marketingweek.com/2017/08/04/brands-digital-pitfalls/">like P&amp;G</a>).</li> <li>Adtech needs to ensure better education of clients (e.g. the Trade Desk's <a href="https://www.thetradedesk.com/tradingacademy">Trading Academy</a>)</li> <li>Marketers need to take hype with a pinch of salt, and beware using the latest tech fad as nothing more than a PR opportunity or a way to make the CMO look good.</li> <li>Marketers and agencies need to stop prematurely pondering the death of successful media such as TV.</li> <li>Vendors should not misrepresent the success of their products with spurious statistical analysis.</li> <li>Everybody has a duty to cut back on meaningless language. Not just consultant-speak and 'millenials'. 'Customer-centric' is rapidly becoming trite and 'digital transformation' can be an unhelpful construct.</li> </ul> <h3>In summary</h3> <p>The snark is partly justified, and often from commentators who are simply too exasperated with a self-involved industry to remain courteous.</p> <p>Marketers need to cut out the BS and focus on their long-term goals.</p> <p>I realise an irony in this article – it may be pretty snarky itself, and some readers may scoff at the points made by Zhiganov and Kay, and think they are yet further example of self-indulgent agency-speak. I'm not so sure, I think they have a point, and perhaps I haven't done them justice here. If they are right, perhaps marketers can earn respect for their profession yet.</p> tag:econsultancy.com,2008:BlogPost/69357 2017-08-23T10:08:00+01:00 2017-08-23T10:08:00+01:00 What’s next for the agency model? Ian Leadbetter <p>But the truth is the promise of the agency’s death is flawed. In the end, there remains a need for experts—trusted sources to provide advice, guidance, assistance, and reassurance.</p> <p>The agency model is not dying, but it is changing.</p> <h3>The agency of the future will be smaller, specialized, and focused</h3> <p>Some of the more viral and notable marketing examples of recent years were spontaneous. '<a href="https://econsultancy.com/blog/63140-eight-great-examples-of-agile-marketing-from-oreo/">Dunk in the dark'</a> style spontaneity isn’t something that many major agencies are able to deliver on. Busy account managers and complex approval structures make large agencies slow to react, and it’s driving many businesses to replace long-time agency contracts with in-house marketing teams.</p> <p>Other major brands—such as Pepsi—do the majority of their marketing work via an <a href="https://econsultancy.com/blog/69148-in-house-agency-versus-on-site-agency-weighing-the-pros-and-cons">in-house agency</a>, but they outsource certain tasks to smaller, more specialized agencies.</p> <p>To combat these trends, the agency of the future will need to be smaller—able to accommodate swift change—and specialized enough to provide services to brands who can’t afford to have an in-house team of experts for all possible needs.</p> <p>If a business needs three videos a year, it probably doesn’t make sense to have a full-time videographer on staff. Instead, that specific work can be outsourced to an agency that specializes in creating and marketing videos.</p> <p>Additionally, subject-matter expertise will become critical to agency branding and success.</p> <p>In a conversation I had with David Gilroy of Conscious Solutions earlier this year, <a href="https://www.ruleranalytics.com/blog/agency/how-to-start-a-marketing-agency/">he told me</a> that the agency’s focus on the legal sector creates an instant value proposition over competitors who cater to multiple sectors, and it also helps with building trust with potential new clients:</p> <p>“If someone says they do law—but also recruitment and some other professional services—it’s a lot easier decision to choose Conscious because that’s all we do: legal.”</p> <p>If agencies are forced to take on too many clients to become and remain profitable, they’ll be forced to grow, which will impede their ability to react quickly.</p> <p>Conversely, specialization enables agencies to charge higher rates, higher rates means fewer clients needed, and fewer clients enables agility.</p> <p><img src="https://assets.econsultancy.com/images/0008/8439/pepsi_ad.jpg" alt="pepsi ad" width="615" height="262"></p> <p><em>Pepsi is one company with an in-house agency, which took some stick in the wake of its pulled Kendall Jenner ad</em></p> <h3>Compensation will be tied to revenue generation</h3> <p>Metrics highlighting increases in traffic, leads, and engagement are no longer enough. </p> <p><a href="https://globenewswire.com/news-release/2017/03/14/936344/0/en/CMO-Council-Founder-Donovan-Neale-May-on-CMO-Job-Loss-Financial-Impact-Analytics-for-Marketing-and-Why-Proof-Is-So-Important.html">A record number of CMOs</a> were laid off in 2016, and one of the biggest reasons cited was <a href="https://www.cmocouncil.org/media-center/press-releases/5337">a lack of ability to prove revenue impact</a>.</p> <p><a href="https://www.cmocouncil.org/media-center/press-releases/5337">According</a> to Donovan Neale-May, Executive Director of the CMO Council: “CMOs now have to show they are impacting business growth right from the outset, or they are likely to be short-lived on the job.”</p> <p>CMOs have to prove revenue impact, and so do agencies.</p> <p>The ultimate goal of marketing is to increase sales and revenue. Traffic and engagement help with branding, and leads are potential sales. But neither increased brand recognition nor an influx of prospects can be directly tied to revenue.</p> <p>To tie marketing activities directly to revenue, agencies will have to adopt the right technology—modern analytics and reporting tools that enable tracking interactions across the entire customer lifecycle.</p> <p>When marketing agencies can provide reports showing that the revenue they’re generating for clients is much higher than the cost of working with the agency, the value of utilizing an agency over an in-house team will become clear.</p> <p>Being able to prove the value they’re providing will enable agencies to charge higher prices, and it may even push marketing into a more commission-based model—similar to the system sales teams have been using for years—that ties compensation to outcomes.</p> <p>The agency of the future may move away from hourly fees and retainers, migrating toward a <a href="https://www.marketingweek.com/2017/05/23/brands-commission-pay-models-agencies/">commission-based model</a> that highlights the value they’re bringing to clients and rewards excellent work.</p> <h3>Agencies can play the role of technology agent</h3> <p><a href="https://blog.hubspot.com/agency/tools-data-complexity-marketing-technology">A 2015 survey</a> reported that marketers use an average of 12 tools to manage their campaigns and data. If a dozen tools seems like a lot, it’s nothing in comparison to the more than 31 that nearly 10% of marketers claimed to use.</p> <p>And that was two years ago. There’s no telling how many new marketing technology products have been launched since then—hundreds, maybe thousands.</p> <p><a href="http://chiefmartec.com/2017/05/marketing-techniology-landscape-supergraphic-2017/"><img src="https://assets.econsultancy.com/images/0008/8438/martech_2017.jpg" alt="martech landscape" width="615" height="346"></a></p> <p><em>The Martech landscape in 2017</em></p> <p>Businesses need expertise to find the right marketing technology. Which tools should they use? Which are the most intuitive? Which have the most comprehensive features?</p> <p>Of course, decision-makers could conduct this research themselves, but most would rather just have a reputable third-party provide a recommendation. It would save time and help leaders avoid making the wrong decision.</p> <p>There’s a huge opportunity for agencies to play the role of technology agent, providing personalized recommendations based on their in-depth knowledge of clients’ needs, and using their expertise with the tools to offer training and support.</p> <p>As David Gilroy of Conscious Solutions told me: “It’s our job to find third-party products, tools, and services. We evaluate them on behalf of all of our clients. We have over 300 law firms who actively pay us money, and part of that agreement is to save them time by finding things that they can’t—and frankly shouldn’t—be finding for themselves.”</p> <p>The advantage for agencies is their expertise with the tools. By taking on the role of technical support with recommended marketing technology platforms, agencies become invaluable.</p> <p>For Conscious Solutions, recommending technologies has helped with client retention. As clients become reliant on the recommended technologies, they’re less likely to be willing to end a partnership with the expert on those technologies—the agency who recommended them.</p> <h3>The agency of the future will be distributed</h3> <p>For agencies to become more specialized and focused—and for the revenue-based compensation model to work in their favor—they’re going to need to hire the right talent: specialized marketers who are excellent at what they do.</p> <p>Requiring employees to work in one physical location isn’t conducive to finding ideal talent to fill open positions. The right person for the job may be in the neighborhood, or he/she may be across an ocean.</p> <p>The agencies that succeed in the future will take a different approach. They’ll utilize technological advances to work with the right people all over the world. They’ll conduct video calls when collaboration is needed, eliminate time zone problems with email, and resolve issues quickly over instant messaging.</p> <p>A large and luxurious main office may impress potential clients who visit for in-person meetings, but it also puts a significant dent in operating costs and limits choices for talent to a specific geographic region.</p> <p>Instead of hefty rent and utility payments, the agency of the future will conduct in-person meetings with clients in temporary offices rented through a service like Regus. They’ll take advantage of the growing gig economy to find people with the perfect skillsets, and they’ll avoid hefty new-hire relocation fees by adopting a remote work policy.</p> <p>Reduced costs will lead to increased profitability, which will be increased even further by having the right team members to deliver value to clients.</p> <p><img src="https://assets.econsultancy.com/images/0008/8440/karmarama.jpg" alt="karmarama offices" width="600" height="300"></p> <p><em>Fancy offices a waste of money?</em></p> <h3>Agencies aren’t dying—they’re evolving</h3> <p>In every industry, there’s a need for experts—trusted sources to provide advice, guidance, assistance, and reassurance. In marketing and advertising, agencies are those experts. The business is changing, but the people are the same.</p> <p>Additionally, for marketers and advertisers, major changes feel like just another day of work. They’ve built their careers on adapting to changes: overcoming algorithm updates, learning what works on a growing social platform, dealing with ad-blocking software and the rise of streaming services.</p> <p>In the world of marketing and advertising, things evolve on a daily basis, and the industry keeps going.</p> <p>The evolving agency model is no exception. </p> <p>Sure, the way agencies operate may change in the years to come, but those who can do what marketers do best—predict the need for change and adapt accordingly—will glide over these temporary speed bumps and come out stronger on the other side.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li> <a href="https://econsultancy.com/hello/top-100">The Econsultancy Top 100 Digital Agencies report </a>(soon to be updated for 2017)</li> </ul> tag:econsultancy.com,2008:Report/4569 2017-08-21T13:27:00+01:00 2017-08-21T13:27:00+01:00 Nike: Engaging customers across multiple channels <p><em>Nike: Engaging customers across multiple channels</em> is part of a series of brand strategy briefings examining the marketing strategies and tactics of the most popular and searched-for brands. As part of this series, Econsultancy curates a selection of brand case studies and stories to help you improve your modern marketing efforts.</p> <p>Nike has long been one of the most recognisable sportwear brands in the world, but how does it maintain its cachet across the digital channels? In this briefing, Econsultancy looks at Nike's greatest successes over the last 12 months, each carrying a lesson brands and marketers can learn from.</p> <h2>What you'll learn</h2> <ul> <li>How Nike turned a product launch into a must-see event, online and offline</li> <li>How Nike approaches its relationship with third-party sellers (i.e. Amazon)</li> <li>How Nike is collaborating with big digital names (i.e. Spotify)</li> <li>How Nike.com stands up as an enjoyable and user-friendly ecommerce experience</li> </ul> tag:econsultancy.com,2008:BlogPost/69334 2017-08-16T11:03:00+01:00 2017-08-16T11:03:00+01:00 Lessons in brand building from Deliciously Ella Nikki Gilliland <p>So, how has Deliciously Ella gone from being yet another food blog to an example of great success? Here’s just four lessons we can learn.</p> <p><em><strong>But before we start, it's worth pointing out that Ella Mills is one of our speakers at the <a href="https://goo.gl/nJMlTI" target="_blank">Festival of Marketing</a> in London on October 4/5 (the best marketing event you'll go to).</strong></em></p> <h3>Creating a point of difference</h3> <p>In 2011, the diagnosis of a chronic illness spurred Ella Mills to transform her diet - a decision which also lead to the creation of a blog as a place to share her recipes online. While the motivations behind the project were very much centred around health (and Ella’s own journey) – it soon started to generate wider interest.</p> <p>Deliciously Ella was able to separate itself from other food blogs early on by creating a point of difference – the creation of a philosophy around food, and one that centres around eating in order to feel good both physically and mentally. Ella has since come under criticism for perpetuating the ‘clean eating’ myth (more on that later) – but it’s important to remember that it was a time before the trend was popular. It was also before <a href="https://econsultancy.com/blog/68409-four-key-trends-within-the-world-of-influencer-marketing/" target="_blank">influencer marketing</a> was actually 'a thing'.</p> <p>By promoting food as a lifestyle – and not just the recipes themselves – Ella was able to build a strong brand image from the get-go. This differentiated her from other food bloggers, and helped establish more of a meaningful connection with the public in comparison to chefs like Jamie Oliver or Nigella Lawson.</p> <p><img src="https://assets.econsultancy.com/images/0008/8267/DE.JPG" alt="" width="780" height="742"></p> <h3>Building a personal connection</h3> <p>Since 2012, the Deliciously Ella blog has generated over 100m hits and its related recipe app, which launched in 2014, went straight to number one in the charts. </p> <p>Deliciously Ella’s social media following has undoubtedly contributed to this level of success, with Ella focusing on building a community online based on a personal connection with her audience.</p> <p>Instead of simply posting images or recipes, Ella often personally replies to comments, which encourages a continual cycle of communication and engagement from followers. This personal connection is also elevated by the <em>kind</em> of content Ella posts – offering snapshots and insights into her own life as well as the food she eats.</p> <p>This promotes a sense of authenticity, with the audience latching on to Ella’s personality and entrepreneurial journey at the same time. Of course, the rise of health and fitness content in general has also contributed to her success, but while similar bloggers or content creators might have dipped in popularity, Ella’s social following has since increased.</p> <p><img src="https://assets.econsultancy.com/images/0008/8264/Deliciously_Ella_Insta.JPG" alt="" width="780" height="676"></p> <h3>Targeting different consumer groups</h3> <p>Deliciously Ella has slowly turned from a blog into a business in the past few years, with the app, cookbook, delis – and finally – a range of snacks cementing it as a brand. </p> <p>However, the target market for each product is not necessarily the same – neither is the consumer always dedicated to the vegan or whole foods lifestyle.</p> <p>While Ella has undoubtedly tapped into this niche consumer group, the brand also targets a wider and more mass-market audience. For example, while the Deliciously Ella snack range is sold in places like Holland and Barrett and traditionally healthier food outlets – they are also available in Starbucks. </p> <p><img src="https://assets.econsultancy.com/images/0008/8266/Starbucks.JPG" alt="" width="780" height="460"></p> <p>This decision was met with some criticism from Ella’s audience, a lot of which stems from controversy over Starbucks’ affiliation with Monsanto – a supplier that uses GMO ingredients. However, Ella has defended the decision, maintaining that it’s based on the fact that the change is needed in mainstream outlets, and that “the majority of people want easy options and won't (otherwise) seek things out.”</p> <p>The fact that Deliciously Ella’s product is able to be sold in both health-food shops and by mainstream brands is also due to how the product is marketed – not as a serious or worthy health food, but an option which just so happens to be sort-of-good for you. The packaging and design of the product is bright and appealing to the eye, with personal touches such as Ella’s signature and language such as ‘my recipe’ evoking an <a href="https://econsultancy.com/blog/67874-the-rise-of-the-artisanal-tone-of-voice-among-brand-marketers/" target="_blank">artisinal nature.</a></p> <p>Interestingly, Ella’s delis have recently undergone a rebrand, changing from the previous name of ‘The Mae Deli’ to join the Deliciously Ella umbrella - with the aim of making the brand name even more recognisable.</p> <p><img src="https://assets.econsultancy.com/images/0008/8265/DEliciously_Ella_Deli.JPG" alt="" width="780" height="533"></p> <h3>Responding to criticism</h3> <p>In 2016, food writer and former GBBO winner Ruby Tandoh mentioned Ella in a widely-shared article about the dangers of ‘clean eating’. Calling out the irresponsible nature of the term – in that it signifies any other kind of eating as dirty – it spurred on a wave of backlash against the ‘wellness’ trend.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">the unhealthy truth behind wellness <a href="https://t.co/rhIMLz32qZ">https://t.co/rhIMLz32qZ</a></p> — Ruby Tandoh (@rubytandoh) <a href="https://twitter.com/rubytandoh/status/731071539039375360">May 13, 2016</a> </blockquote> <p>Instead of shying away from the controversy, Ella chose to accept an invitation to appear in the documentary <em>Clean Eating, The Dirty Truth</em> – which subsequently aired on the BBC. As well as distancing herself from the term ‘clean’, it is clear from this that Ella has learnt and subsequently adapted to the shift in feeling from both her audience and the public. Her latest book urges readers ‘not to preach’ – and points out the dangers of categorising food as ‘good’ or ‘bad’.</p> <p>You could say that Deliciously Ella is somewhat stuck between a rock and a hard place – never going to satisfy hard-core health advocates, nor going to be mainstream. However, she is a good example of how to recognise and respond to critisicm as well as the changing needs of the audience – helping to improve positive brand perception in the process. </p> <h3>In conclusion…</h3> <p>So, what can we learn from Deliciously Ella’s success? Here are a few key takeaways.</p> <p><strong>Build a brand philosophy – not just a product</strong>. It’s possible to generate a decent amount of interest solely through the product alone (healthy recipes, in this case), however, it is often the values that surround the core product that truly drives success. </p> <p><strong>Use social to build meaningful connections.</strong> Real success on platforms like Instagram often stems from being able to create a community online – which means liking, commenting, responding, and engaging with followers on a consistent basis. </p> <p><strong>Be consistent in your branding</strong>. Brand values are important, but a visual representation of these can also be highly effective for increasing awareness. Ella’s positive and non-worthy outlook is represented in the brand’s cheerful design and packaging.  </p> <p><strong>Respond to criticism</strong>. Recognising and <a href="https://www.econsultancy.com/blog/66380-how-brands-can-say-sorry-like-they-mean-it" target="_blank">adapting to criticism</a> is one of the most effective ways to counteract negativity – and even turn around the audience’s perceptions.</p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://www.econsultancy.com/blog/69311-six-lessons-we-can-learn-from-the-best-stationery-brands-on-instagram" target="_blank">Six lessons we can learn from the best stationery brands on Instagram</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/66534-three-lessons-all-retailers-can-learn-from-amazon" target="_blank">Three lessons all retailers can learn from Amazon</a></em></li> <li><em><a href="https://econsultancy.com/blog/63893-seven-twitter-q-as-and-the-lessons-that-can-be-learned" target="_blank">Seven Twitter Q&amp;As and the lessons that can be learned</a></em></li> </ul> tag:econsultancy.com,2008:Report/4566 2017-08-15T11:14:00+01:00 2017-08-15T11:14:00+01:00 Starbucks: Adapting to changing consumer habits <p><em>Starbucks: Adapting to changing consumer habits</em> is part of a series of brand strategy briefings examining the marketing strategies and tactics of the most popular and searched-for brands. As part of this series, Econsultancy curates a selection of brand case studies and stories to help you improve your modern marketing efforts.</p> <p>As one of the most successful and well-known coffee outlets, Starbucks is continuosly learning from and adapting its business and marketing strategy. Other brands and marketers can learn from these stories too.</p> <h2>What you'll learn</h2> <ul> <li>How Starbucks is battling the impact of changing consumer behaviour and engaging with new and younger audiences</li> <li>How Starbucks has responded to criticism when adapting loyalty schemes</li> <li>How the brand is utilising new technologies to improve customer experience</li> </ul>