Having discussed monetizing the mobile channel the series of blogs on conversations from the Digiday Publishers Summit continues with another challenge that publishing execs are grappling with:
Why is that problematic?
It’s not just that, as discussed in a previous blog, display ad CPMs on mobile are very low (compared to desktop). But it appears that display ad CPMs in general are under downward pressure, supported by this quote from The Economist’s Tom Standage:
“The Economist has taken the view that advertising is nice, and we’ll certainly take money where we can get it, but we’re pretty much expecting it to go away.”
When something is commoditized, its perceived value goes down. So, given how much the Internet is flush with content, it is no surprise that CPMs are falling because the perceived value of content is lower.
So, what do publishers say they must do?
At The Economist, Tom says it is selling subscriptions to busy readers who don’t have time to scour the whole Internet to learn what they need to know. Instead, The Economist’s value is that the reader learns what they need to know in a compact format, whether that is in the print edition or mobile app.
It is also banking on thought leadership, i.e. organizing conferences and papers that can be sponsored. At Lyris, we would call this a niche publishing approach – getting the right, compact information to the right targeted audiences. Our CEO John Philpin talks about this in an article for Adotas, writing,
“Any business that wants to pursue ‘true differentiation’ needs to establish a product that, in the mind of the consumer, is markedly and undeniably different.”
At The New York Time Digital, it is called “Services.” At the Digiday Summit, Paul Smurl, general manager of core digital products for The Times also emphasized his conviction that publishers must reinvent their revenue channels and go beyond advertising to secure their future. He shared his excitement about the new “Services” that save their audiences time and effort, for example:
Bottom-line, there is so much content on the Internet already that publishers must reinvent themselves to go beyond advertising.
Here’s our team’s take.
Very similar to the examples from The Times and The Economist, Lyris and the clients we serve in the publishing industry are big believers that value is produced by bringing the right content to the right recipient at the right time through the right channel.
It’s about taking a page out of the playbooks of Facebook and Google, who are masters in content distribution and creating relevant experiences.
And, it doesn’t take an army of programmers to do this. Thanks to machine learning intelligence and with the help of the Lyris Audience Messaging platform, publishers large and small are able to let automation work for them.
The key is that we’re living in the age of data and analytics-driven intelligence. An interesting glimmer of just how key data is to the future was shared by the speaker from ABC at the Digiday Summit. Namely, Disney is working on consolidating its audience data into a common DMP platform so that it could perhaps be shared between Disney brands one day in the future in order to drive more targeted display advertising. The better the data, the more fine-grained a sponsor or advertiser can target an audience.
Likewise, there are publishers that talk about banding their data together in a data co-op to achieve similar scale across multiple publishing empires. While all this is still focused on advertising, the more powerful data can help these publishers defend themselves against the looming future where the Facebook and Google IDs could become the only relevant display ad targeting IDs that matter, as the speaker from ABC hinted.
Lyris’ Strategic DOs and DON’Ts:
Was it night-time skiing? Or partaking of certain vision-enhancing activities that happen to be legal in Colorado?
No! That’s not what’s keeping publishers up at night – it’s the top business challenges that they grapple with, and that the executives attending the Digiday Publishers Summit 2015 in Vail, Colorado almost unanimously lamented:
The Lyris team including myself were at the Summit listening, sharing, and learning alongside the larger numbers of digital publishing execs there. We’ll explore each of their top challenges in a five-part blog series, starting with this one:
By far the biggest challenge that came to light is how to better monetize publishers’ mobile channels (e.g. apps) since display advertising CPM fees are just one third that of the fees that publishers can charge for their regular website.
Brian Morrissey, editor-in-chief at Digiday, dubbed it, “Mobile is eating the world.” Just about every publisher listed it as one of their top two challenges.
No wonder. For most publishers, the majority of their audience has shifted to using mobile devices. So the low CPMs threaten to decimate publishers’ incomes. Yet, the call for how to get the CPMs raised remained unanswered.
How Lyris helps publishers address the challenge
Publishers, you are looking in the wrong places! Guess what is the number one activity that consumers engage in on their smartphones? It’s checking email!
Publishers in-the-know take advantage of email to engage their audiences while they are on their mobile devices. These publishers drive additional advertising revenue both within the emails and on their regular, mobile-first websites when more readers click through from the emails.
Lyris recommended DOs and DONTs:
Cross posted from the Lyris Connections Blog
As I was setting up holiday lights around my house this weekend I was plugging one string of lights into the next to go around the length of the roof. That made me think: how complicated would this be if every cable had a different kind of power plug, i.e. if there wasn’t a standard socket/plug for connecting cables from different vendors. You would have needed to run a separate power cable from the main socket to each set of lights instead of simply connecting the various cable strings with each other.
Wouldn’t it be much more sensible if all of the digital marketing solutions could plug into a common set of data elements?
IBM, in collaboration with 50+ other digital leaders such as Google, Adobe, tag management vendors, etc, has chaired an initiative to establish a new digital marketing industry standard for streamlined digital data management within a World Wide Web Consortium (W3C) community group. This community of industry leaders has now approved the final Customer Experience Digital Data Layer specification which rallies the industry around a single data model for tag data collection.
The value to marketers is accelerated on-boarding of new, relevant services, reduced IT burden in managing existing services, and superior and consistent site performance.
As vendors in the industry adopt this new standard, marketers will be able to take advantage of a single tag language used across all participating digital marketing services, saving time and money during implementation.
As the chair of the W3C Community Group, IBM’s Sri Viswanath had posted his perspective on this blog earlier in the year. Therefore, let me share below voices from other digital thought leaders and practitioners.
Eric Peterson reviews the practical value of the W3C final specification on the Web Analytics Demystified blog in the light of a “coming of age” of tag management vendors. Meaning, in my opinion, that instead of competing on the commodity aspects of tag management data, vendors will now compete on the merits of what they enable businesses to do with that data. For example, how are the solutions helping their customers exchange digital data with a network of Digital Marketing solution providers in order to infuse these with real time intelligence on customer behavior?
“At Web Analytics Demystified we are excited to start leveraging this document in our client work and are looking forward to years of growth in the TMS sector.” and “those companies leveraging the W3C work will essentially enable a ‘plug and play’ environment”
Let’s go across the pond next, literally, and hear from one of the captains of web analytics that has guided and shepherded use of intelligence towards better digital marketing decisions over the past decade. Oliver Schiffers has been known for his web analytics leadership at SapientNitro for many years. Way back in 2001 he has been one of the NetGenesis crowd, so he has experienced the issues from both vendor and consulting perspectives.
“I see tremendous value in the data layer on top of the value Tag Management Systems (TMS) already provide. What was missing was still a consistent way of providing custom and dynamics values to the TMS.
Also, to be able to set a clear standard and orientation for agencies and site producers how to catch events is beneficial to both the developers as well as the analyst responsible for tagging.
When mentioning the standard, I was able to immediately gain trust within clients I am working for, because this is a W3C standard, the value is easily digestible, and it is still open for custom amendments. “
I love that endorsement that a common language helps each of the constituents in the process.
Let’s ask a practitioner on the digital analytics side of things next. Todd Belcher is a veteran in the analytics industry with many years under his belt and working with many websites. Today, he is Digital Analytics Manager (Consultant) at Putnam Investments and shares his perspective:
“I believe organizations working with multiple digital marketing and analytics technologies, and the digital analytics community as a whole will benefit as a result of migrations toward this standard. By adopting this standard, organizations’ web, application, and marketing/analytics teams are adopting a common language and process for surfacing data to digital marketing/analytics technologies. Ownership of creating this common language and process does not fall on the organization. It has already been done. “
Similar to Oliver maybe, Todd also stresses another benefit, namely helping organizations communicate unambiguously internally and with their digital marketing or analytics technology vendors:
“That internal communications efficiency must not be overlooked: when interfacing with digital marketing / analytics technology vendors, having a data layer in place promises potential ‘turn key’ implementations. It provides a common language and process… but not only for use by the organization, also for the organization to communicate with its vendors”.
Let’s move to mobile next and ask Lee Isensee at Localytics. Lee has been a pillar of this industry for more than a decade and worked through countless implementations of digital data collection tags with customers. That direct hands-on experience informs the value he sees in removing spaghetti coding pains, i.e. not needing to translate multiple languages into each other!
“I would stress the ease of leveraging the data in a format that is universally understood without having to create extensive, and potentially convoluted, custom parsing solutions that have weighed the market down. The uniformity of the data also provides transparency to how each vendor works with the customer’s information.”
Aurelie focused more on that last point. Specializing with her firm in the area of data and consumer privacy, Aurelie reviews the potentials of the new data collection specification from that specific angle. Here, the potential of the new data layer specification is that a commonly agreed standard of what each data element means, can also lead to more precise opt-in or opt-out mechanisms.
“I hope it will gain traction. Yet it remains a technology perspective of the Privacy problem. . As with anything in our industry, this is related to tools but certainly there is more to it, e.g. people and processes.
Therefore, when it comes to Privacy, this should clearly be part of a larger thought process, hopefully inducing Privacy by Design ways of thinking. Hopefully it will not be seen as the only solution to adopt when tackling this evolving issue.
My second stance is one related to adoption for privacy related goals, e.g. in the light of the earlier privacy project at the W3C: Platform for Privacy Preferences (P3P) that was suspended back in 2007. Through my career, I’ve had requests related to P3P but with no real drive to take into consideration these guidelines. Adoption remained low and was merely seen as a hassle, imposed by General Council if not just some enlightened Privacy defender(s). The question of adoption of the new standard for privacy purposes remains therefore open.
From the angle of data privacy, the final specification is helpful but not enough by itself, as Aurelie points out. More remains to be done for that angle.
IBM and many of the participating vendors are eager to adopt the final specification into our digital marketing and analytics solutions and implementations have already begun in some cases.
For example, David Henderson at Triggered Messaging Ltd has been implementing against the final report at his firm and is sharing his experience on the W3C Wiki. Meanwhile, users of IBM Digital Data Exchange can already today map to the uniform Digital Data Layer in order to have it feed IBM’s solutions for digital Marketing, analytics, customer experience management, and omni channel marketing.
What’s your next step?
How are you going to adopt the standard for your site, products, or customers? Download and read the final specification for the Customer Experience Digital Data Layer today!
This was cross posted from smartercommerceblog.com/digitalmarketing/
In some ways, marketing hasn’t changed at all. It’s still about knowing consumers and connecting your company’s value to that audience in order to create customers.
In other ways, marketing has changed completely. A “day in the life” of marketers past might have been like Madmen, driven mainly by artists and creative types. In those bygone days, you might have evoked with great creativity in an ad how your customer would feel if they held that cigarette in their hand or offered that drink to the hottie across the bar.
Compare that to a “day in the life” of today’s marketer. While still as creative and artistic as ever, modern marketers are also like imagineers automating their creation with the most cutting edge data science and software technology in the background.
Here is a snapshot of what the day of a marketing imagineer might look like.
1. Your day might begin by readying a new microsite to support a promotional campaign you want to test. But, if it took weeks to develop your site you’d never do it. So …
2. If you are in eCommerce, you are now considering the right prices to offer your digital target segments in order to increase profits, not just revenue. To calculate the right answer, you turn to your pricing, promotion, and product mix software solution rather than pulling a number out of thin air.
3. Since the spray and pray days of marketing are over, you now need to capture the moments when your customers exhibit behavior that qualifies them for these discounts. And, of course, this needs to be automatic. So, you configure yourreal time digital marketing system to extend the discount codes to site visitors while they are on the site and via retargeting emails after visitors have dropped off.
4. Sometimes discount codes don’t work like they should. Rather than shrugging and accepting that as unavoidable, you’d like to be the first to find out when customers struggle. So you configure your customer experience management systemto alert you instantly when there is a spike of promo codes that aren’t going through. Using replay, you put yourself in the shoes of the customer, see what they saw, and identify and remedy the issues.
5. But, by now those customers have dropped off the site and are probably pretty annoyed. How to win them back? You connect the list from your customer experience management system into your cross-channel marketing application. You send them an email with an offer to help. Or, you let the CRM system prompt call center agents to offer help proactively when these customers call in.
6. Since nobody is perfect, you are always measuring and experimenting to see where you can improve your marketing performance. Yet, this isn’t your grandmother’s marketing reporting either. Today, statistical marketing attribution algorithms automatically tease out which marketing touch points deserve credit for truly creating incremental revenue when customers are touched by multiple campaigns in the run up to a transaction or purchase.
All that data, science, and business machinery is humming intact in the background so that you can imagineer a great customer experience and your customers can go about hunting for discounts and have fun browsing.
In the IBM Enterprise Marketing Management product team, our job is to make yours easier. For example, we just released an update to our digital marketing, customer experience management, and pricing management SaaS solutions. The new capabilities are some of the enabling capabilities in the “day of the marketer” above. See the release launch page for all the new capabilities enabling our users to engage their customers with one voice.
To hear from a real marketer that is setting the pace and outperforming their peers, tune in on October 24 when Ewald Hoppen from wehkamp.nl explains how his team uses cutting-edge technology as well as innovative marketing techniques. Their results speak for themselves, e.g. a 273% higher ratio of sales per email sent, a 63% lower email opt-out rate, and a 15x increase in ROI for their display ads.
Note: This was cross-posted from the original on the IBM.com Smarter Commerce blog.
The original version of the chart below was created by Kevin Cavanaugh back in Unica days (Kevin’s now CTO at Allant Group). Still to date it’s one of the most popular pieces of thought leadership content I carry around with me on my USB drive everywhere I go. Folks in the audience often take pictures of this during presentations.
What it shows is that customers engage with our companies through so many channels and that some of these channels are more likely to be used during certain times in the customer lifecycle. For example, after learning about a brand via mass media commercials a prospect might grab their tablet to learn more about the product and then ultimately call the call center to ask further questions and sign up or purchase.
Yet, over the years there has been a dramatic change. Kevin originally created this chart to visualize how critical it is to integrate online and offline channels for successful customer strategies. That is also how the chart was introduced in my book in 2008.
But today when you look at the chart you see an expanded number of digital channels at the heart of it. Digital is slowly taking over the chart. And the #1 take away from the chart today isn’t the online-offline integration anymore.
Rather, it’s that digital channels in themselves are an Omni-channel world ranging from website to tablet, phone, email, ad networks, social media networks, etc. Many of the most successful digital marketers today tie these digital channels together for continuous customer engagement. When a customer drops off from one channel, they continue the dialog with the customer on the next channel that he or she comes back on. That is assuming that the customer has at some point authenticated on each channel or device so he or she can be identified again.
Optimizing each of the channels and devices is bread & butter. But optimizing how they play together — that’s the Nutella on top.
One fun anecdote is that back when Kevin first created this chart we had question marks for the role of mobile in the customer lifecycle because the smartest phone around was still the Blackberry back then. It wasn’t clear at all back then how mobile would be used in the customer life cycle. Boy have we come a long way since then. Mobile is everywhere now.
IBM’s Smarter Commerce Global Summit Nashville just completed May 21-23. Hundreds of speakers shared their best practices and lessons learned.
What were some of the key takeaways for digital marketers and analysts? Surprise lessons? The hot trends of the times?
I asked a few of the digital marketing thought leaders that were in attendance. Here is what they observed.
Bryan Eisenberg – Author and “Use the Data” Expert
The biggest takeaway for me was how one of the large department store customers of IBM’s has expanded their use of data and integrated analytics across the physical and digital channels. It was great to see how stores can begin to leverage the insights that the online team has and vice versa to create better experiences cross-channel for their customers.
Sameer Khan, Rackspace Senior Digital Marketing Manager and Blogger at Keywebmetrics.com
My biggest takeaway was how IBM is making cross-channel marketing a reality with its marketing solutions. It also was interesting to learn about the cutting edge digital personalization campaigns possible using Tealeaf’s revolutionary behavioral analytics. Last but not least, the transformation of marketing attribution to statistically-significant outcomes leads us one step closer to real time budgeting by knowing which efforts truly deserve credit for downstream sales.
Mike Niemann, IBM Digital Marketing Optimization, Product Management
The predominance of omni-channel as not just a buzzword but a concept that many are really beginning to embrace and tackle was something I saw again and again. Moving from the concept of multi-channel, where the emphasis was more focused on simply getting a brand’s presence extended to various new and emerging channels, toward omni-channel, where a true understanding of customer experiences across mobile devices, interaction channels, and social networks, can really begin to allow marketers to offer a consistent and personalized experience. The business goal is to get to marketing that feels like a service, i.e. is a “youtility” as keynote speaker Jay Baer put it.
Chris Hogan’s quote from Margaret Getchell (one of, if not the, first women executives in retail) from back in the late 1800′s really stands out as being totally relevant in the digital age we live in today: “Be everywhere, do everything, and never fail to astonish the customer”
Bill Bruno, CEO, Stratigent
My #1 take away from the event is that IBM is very focused on building a product suite that truly is integrated and that can provide incredible power to the marketers looking to build customized and unique experiences for their customers. If you think further about how the capabilities from IBM Watson can expand the possibilities, you’re talking about a game-changing ability to make sense of data to identify key personas/segments for optimization efforts.
Aubrey Rupp, IBM Digital Marketing Optimization, Product Management
Own the customer experience. We need to stop thinking about digital and physical as two separate things and capitalize on the magic that happens when we can combine them. We can use this knowledge to maximize the moments with customers, creating a personal experience for each customer and treat them as the unique individuals that they are.
“Sri” Viswanath Srikanth, IBM Standards and chair of the W3C Customer Experience Digital Data Community Group
My top takeaways were that enterprise marketers are continuing to look for ease of use for their solutions, best-of-breed technologies (as opposed to becoming a single vendor or single platform house), are intrigued by the possibilities around open technologies (open source/open standards), and continue to see a convergence of mobile, social, cloud and analytics worlds impacting their space.
Blair Reeves, IBM Digital Marketing Optimization, Product Marketing Management
The emphasis has shifted from channel-specific, or even context-specific, strategies to a broader view – the omni-channel view. Or, in other words, we are going “from digital marketing to customer intelligence.” I think the term “customer intelligence” really captures what we mean by both omni-channel and Smarter Commerce – connected customers engaging via channels they choose, and expecting a compelling experience.
Leah Paschall, IBM Digital Marketing Optimization, Product Marketing Management
I couldn’t say it any better than the journalists at Forbes who described the biggest challenges facing marketers in a recent article. The article is based on the recent IBM State of Marketing 2013 survey of which a sneak preview was shared with customers in Nashville.
Michelle Kiss and John Lovett, Web Analytics Demystified
And finally, this Blogger
What do all the brilliant digital marketers and analysts that I got a chance to learn about in Nashville have in common, for example Chris Hogan, Eric Hoover, Ewald Hoppen, Inna Drut, Lisa Langan, Jennifer Stinchcomb, Michael LaHue, Nancy Flint, Sameer Khan, Venkata Duvvuri? When they speak, you hear the love for data in their voices. You hear the passion of turning data into better customer experiences. It reminds me of how the owner of a small corner store truly wants to take care of his or her customers and make them better off while looking out for business at the same time.
This article is cross posted from the Smarter Commerce blog.
Tune in to the recent Beyond Web Analytics podcast on the topic of the coming Standards for digital data collection via tags. Listen as the BWA hosts Adam Greco, Rudi Shumpert explore the topic and coming standards with IBM’s Eliot Towb (product management for digital analytics and tag management), and Sri (Viswanath Srikanth) from IBM Standards.
Visit the W3C’s related standards group page to see the list of current members in the effort including the who is who in digital.
Having served in the digital analytics and marketing industry for the past 12 years, I remember waaaay back in maybe 2006 there were passionate voices in the industry advocating that the page tagging layer should be interchangeable, i.e. standardized, between web analytics solutions vendors.
Customers should have it easier to switch out web analytics solutions. Vendors should be competing on the merits of the insights that they help customers derive, not on the mechanics of data collection.
Back then, those proposals went nowhere since all of us back then at Unica, Coremetrics, Omniture, Webtrends, etc. were busy growing business like crazy and getting acquired.
I shouldn’t jinx it by speaking too optimistically but all signs are that we are on a very promising path to standardization of data acquisition via page tags now.
And this will be not just for web analytics solutions, but more generally for all digital marketing applications.
The goal is to save marketers from needing to learn and program a whole new tag data collection language with every vendor’s solution that they want to try. The value is that marketers can then be more agile with trying and using new applications since these could all feed off of a common data collection layer.
Today, the standardization effort is being lead by a few dozen member companies including the ‘who-is-who’ in digital. They are working in the W3C Customer Experience Digital Data Community and making rapid progress towards proposing a standard for data acquisition.
The participants represent:
IBM’s “Sri”, Viswanath Srikanth, from the IBM Software Standards team is chairing the group effort. Sri is planning to be in Nashville at the Smarter Commerce conference to share details from the community’s work.
Aside from the impressive list of participants, the other great news to me is that this is really straight forward from a technical and practical perspective.
You could compare it to the way standardized electrical power plugs and sockets make it possible to plug in any electrical device no matter where or which power company is serving the region. They all rely on there being a standard interface in between them, namely standardized power sockets and plugs.
But … if there is a common translation layer in between sites and apps that everybody can rely on … that would solve the problem.
But after doing this just once, all standards compliant third party solutions can plug and play.
When solutions require additional key-value pairs of data beyond those specified in the standard, no problem, those can be deployed through additional tagging.
The next milestones in the W3C Standards discussion group are for the data layer spec to be readied in May/June 2013 and finalized and published by July/August 2013.
From there, it is only a matter of time before the member organizations adopt the standard into their product road maps.
I have no doubt that the tag management solutions and major digital marketing suite vendors will be first to race and implement the standards. Once that has happened, point solutions will follow.
Simply go to the W3C’s web page for the Customer Experience Digital Data Community Group and follow the links on information about how to join.
What is it you might wonder that is driving vendors such as IBM to invest in this standards effort now given that for so many years most vendors weren’t prioritizing standardization at all.
The first major change has been the advent of tag management solutions. With those available widely, no vendor can hope to lock in their customers by making it cumbersome to retag.
Secondly, many of the participating vendors offer a wide and ever growing portfolio of solutions. We need to make it easy for our customers to plug and play with our native solutions plus with point solutions of their choice.
This is a core strategy that customers should expect from their vendors. At least that is why IBM is in it.
After all, … could you imagine undoing the standardization of electrical power plugs?
To learn more, join IBM customers and prospective customers in Nashville (May 21-23) and Monaco (June 18-20). Sri and our IBM colleague Eliot Towb are presenting on the topic and available for discussion and your feedback.