Digital Impact: Two Secrets To Online Marketing Success

so it's true I've never actually spoken at an e metrics confidence before and there's really two reasons frankly gym that I have the first reason is that certainly in the earlier days when I was running around a lot trying to build the marketer and most of your conferences were in the west coast you are from San Diego I'm much I was not sure I could afford the time away from the office in the flight time and all that and then irony of ironies I was scared because I was thrilled when you said hey what's going to be right here in New York bringing it in essence to me it turns out that i had to accept another invitation to speak in san jose yesterday so i took a red-eye irony of ironies to get here today so I've had no sleep this is why we love Starbucks or at least died the second obstacle was Jim is a brilliant presenter and a brilliant person when it comes to metrics does anybody in metrics here just check if not there's a great conference right down the hall vision I want it's about dentistry or so I didn't feel in my heart of hearts being a kind of a numbers guy but not really a metrics guy at least in your sense of the word and so I really didn't think I was up to the task and then finally I decided you know I really want to get on Jim stage I really want to do it justice so I wrote a book okay I didn't really write book just for you too but it was a gotta left right and I I cheated because I didn't write the whole book myself in meijer in fact the real expert when it comes to what we're going to call performance measurement so all that aside we're here i'm here today we're here today is anybody ready to have some fun Hey Wow even better the audience in San Jose you want some head more coffee they're a little quieter let's start with this fundamental set of questions that is dogging most marketers today these are the questions that they really haven't figured out they relate to online but it's much bigger than it relates to really all of media that is a lack of adequate metrics and measurement systems to drive marketing performance this in fact was the impetus for the book Vivian Maier came to me and said hey would you like to write a book and I said no he then took me up the hour lunch no martinis and we write the book largely because the performance measure and I knew that it needed to be fixed even though if I wasn't the expert in that subject matter the second thing is that there's this frustration with how to effectively engage with consumers today because really that's what we're trying to do is marketers right not just look at a set of numbers how do we engage with them when their attention spans are so distracted they're doing simultaneous media consumption they are basically resistant to advertising messages like never before so how do you actually engage with them it will learn the secrets to both of these secret number one of course as I said before is about the need for performance measurement so looking at the need for accountability emarketer likes to look at stats so I'll throw a couple at you this is from the four days market but we found that three quarters of CEOs believe marketers lack business credibility ouch that doesn't feel good and this one this is the marketers themselves sixty-three percent of marketers believe marketing roi right will be the most important measure of the excess success in 2015 and yet only forty-four percent feel prepare to be held accountable for it so we have a little gap here in the future as well as right now because that gap is even bigger right now in fact let's kind of evoke the feeling that most marketers particularly at the senior level feel about data and analytics and all the stuff that it takes to measure marketing campaigns all right and overlaying this fear is this and this this this frustration because you practically have to have a PhD in statistics just to understand what your marketing programs are doing is the demands from up top the CEO and the CFO to account for yes every dollar that you spend in marketing what kind of return on investment am I getting for that and it's b2c companies it's be to big companies it's every vertical segment basically I'm talking about this for years and nobody's ever said no Jeff bet that's really not a problem we just throw 50 million dollars out there and see what happens now that's not happening it leads certain marketers to consume certain beverages all right we all have a little agita from what's going on with all this there's just so many different numbers to look at and then when you overlay that with this thing have you heard that there's a recession yeah yeah it's still going on that is to other people to a different beverage but we're not here to talk about that maybe later is there a coffee hour or sorry a cocktail hour late yeah very good so just kind of teeing you up nicely for that I love the way Bob Leodis who's the head of the Association of national advertisers put it so succinctly when he said the challenge is proved to me that it worked proved it works in both the short term and importantly the long term deliverables the short term not just the nanosecond of a click but over time are we moving the dial in terms of consumer sentiment brand consideration right down to guess the ottsville purchase and repurchase and brand loyalty and lifetime value and all those good things that you guys know more than I do all right so let's take a quick look at what's at stake you how many dollars are we talking about Jeff well in fact we're talking about 157 billion media advertising dollars this is above the line television radio print outdoor indoor whatever that is digital etc so 157 billion that's any marketer figure out cell having a broader definition of media marketing includes marketing whatever they want to include in that strict mail and a whole bunch of other things so that's three hundred sixty eight billion and then if you include varonis Euler and some of the other mega Watchers out there of media and marketing all of mark Communications we're talking about one trillion dollars now I know that's nothing compared to our national debt but you know it's big number I'm you get within that pie is 31 billion dollars that is spent on digital marketing or advertising i should say in the US 31 billion dollars doesn't include the 60 to 70 billion that's spent on websites and all the back office stuff that requires to run that but what's increasingly happening is that the internet is seen as a hub because it's where more and more of consumers are spending their time and engagement throughout the day during at work as well as at home it is a huge purchase influence we all know that what between eighty and ninety percent of purchases nobody depending on your product category are researched online even if they end up being purchased in an offline situation right now online is about twenty percent one-fifth 19.9 percent to be specific of total media in 2011 and next year you can tweet this next year in 2012 digital will match or actually surpass newspapers and magazines combined in terms of spending that is a huge kind of milestone I remember when internet surpassed outdoor we were like boo boo at five billion so basically it's also the media measurement hook because you run a campaign on television or radio or whatever you know some of these other traditional media and what you often find is it or hopefully your engineer across media platform campaign is that you can measure whether there's engagement going on through a mobile device through a website you are able to discern granularly whether there is engagement through the digital medium so in a sense the internet is the power of what medium to rule them all ok maybe I'm getting health just a little ahead of myself but you you get the sense this is increasingly how marketers are seeing it I don't know how many conferences like yesterday when i was in san jose this is a very large b2b company in the lighting business who creates this whole two or three-day event called a digital summit digital summits are happening all over the place right in the hotel I'm looking at some kind of flyer that's there on the reception desk and it's for the thousands of Adobe employees who are going to be there the next day for a digital summit so it's happening all over the place alright moving on Jeff can you tell us what is the spending growth rate for online advertising we said it was 31 billion in 2011 in fact we're predicting twenty percent we came up with this estimate in june of this year you're probably thinking Jeff you know there's this recession thing going on what what is it be your equal is drink when they come up with numbers like double-digit twenty percent growth rate well in fact if you look at the other research sources which emarketer nikli does we are transparent we look at every single source imaginable four thousand sources we look at and in this case there's about you know almost a dozen different research sources they're all showing double-digit growth and as I argued in June we will start to see by the end of this year these numbers pop up because we not because we're so present but we do look at trends we look at the big players the market like Yahoo and MSN and Google and so on and we look at their SEC filings their earnings and we met your bottoms up what's really going on there so this is a reality-based projection and by the way we benchmark against the Interactive Advertising Bureau so when they come up with new sets of numbers like they just did reporting on first half up 23% and if you allow for maybe just a little smidge of in a rosen in online ad spending given the global economic morass wherein you probably are going to get pretty close to twenty percent so we're sticking with our twenty percent so keep that in mind twenty percent growth where is the digital growth coming from well it ain't really coming from the pole media pie which we're estimating is not even us but lots of others are now coming in at they downgraded the rest of us from about three or five three to five percent growth to about 1.4 one point six percent growth sir martin sorrell we always love to hear from him says the wash watchword is cautioned actually admitted they were nervous right then there was this we had these numbers we look at not only internet numbers we look at total media spending because of course it all has to integrate and this will happen to appear in the Wall Street Journal what you see is TVs continuing to rise in terms of ad spending 60 billion plus market but you see a steady decline in newspapers and magazines and oh what look internet going up at largely at the expense of newspapers and magazines it's not coming from television it's coming from newspapers and magazines and some other things as well and in fact that's corroborated by this source this is a society of digital agencies whatever that means brand marketers worldwide who planted shift funds from traditional to online three quarters said yup that's where it's coming from so it's not a bigger pie its borrowing from Peter to pay Paul and Paul is the internet just clarified so let's get back to the book I love to give back secret number to get to the problem of engagement with digital consumers and this is a thorny problem indeed if you thought performance measurement was tough even tougher this is your consumer today she is very distrusting of you marketers and we see this trend over time get worse and worse the numbers in terms of the perception of advertising as a practice infinitesimally low i think it's just above used car salesman and below insurance I mean it's not a pretty picture all right and then you see statistics like this and you know we can argue with if it's true or not but forty-three percent of consumers said they ignore or disregard banner ads more than any other medium and then there is that a cute affliction and I think a fund should be started to to help people have this affliction it is a really terrible disease and i hope you you don't succumb to it yes it's called banner blindness won't you give today so with that in mind I'm going to propose something pretty radical which is what we talked about in the book which is that the interruption disruption mop where we interrupt this programming to sell you stuff you're probably not interested in it least not right now right to distract you from the program that you came to see in the first place you know this was born out of the television era right but it happens in radio it happens in the internet when you get 15 pop-ups or 50 ads on the page and your eye is just trying to go to the content you came to in the first place it's borrowed interest or attention we're doing that it doesn't go away entirely paid media is not dead don't please don't tweet that and have everybody kill me it's just that it's going to diminish in importance Seth Godin said it very well at a conference about a year ago he says advertising is no longer about blasting the most messages to the most people it's about this ideas creative ideas that it's that spread are the winners you know there's that viral component and then you've got one of the largest global marketers in the world Pepsi where the CMO said we need to create experiences not just sponsored tip no longer can we sit back and just say Oh brought to you by Pepsi right they want to experience with critters in the b2c and b2b world are desperately trying to do that so we call in to phrase marketers are focusing on we call it magnetic content this is content it is so compelling interesting in its own right useful entertaining that people not only welcome it they look for more of it and they want to share it with others how high a bar is that let's take it a look at an example okay everybody's seen the evian r elevators i'm not going to run an abundance we've all seen this 50 million views I just checked a ok forty-nine point whatever million but 50 million views right all on the YouTube channel not on TV one of the best product shots I've ever seen is the babies you know in and out of the bottles there why because it's it's fun to watch you want to share this with other people how many people have seen this one cheech and Chong's met of course i know jim has this is this is fantastic it's cheating John come back from the 70s with their drugs sex and rock and roll that we all know and love them from right it's a hilarious two and a half minute video right wait a second magic brownies it's actually fiber one for my generation it works because I remember them and I want to watch it very funny guys what's amazing though is this is from general mills chi ching chong sex drugs and rock it well what is going on here because it actually get it you have to entertain you have to get people's attention you can't borrow it anymore they very very subtly and cleverly weave in the product and get the product benefit in there you don't forget it you know but you're laughing all the way to the bank another example this isn't funny but it's useful is north face which makes you know ski jackets and stuff create an app for avid skier so you can download it and then understand what the snow conditions are going to be at Mount Vernon tomorrow pretty cool that's ample of utility so to clarify it's more about attraction than distraction which is what most ads are about another way to think of it is that magnetic content turns the entire targeting approach on its head think of the proverbial needle in the haystack is your consumer you're trying to reach you get all your data and analytics together to really fine-tune and target that particular customer based on whatever demographic profile you might have or lifestyle I don't care so you target it but what if instead of going through the haystack trying to find that consumer or the needle you pulled out this big fat magnet what happens well of course the needle goes to the magnet but yeah there's this little added plus which is it if you create really good magnetic content that's really funny compelling or useful or what have you you will pull out of the woodwork or the haystack all kinds of other people that are interested in your magnetic content and therefore potentially your brand as well but you would have never found them or targeted them because oh well they just don't fit my profile well who gives a crap if they want your product and they're interested in your brand because of your magnetic content bring it on so that's how you can get some scale we'll talk more about that later I love this there's even research that supports the book types of interactions that new at us new media users aren't we all new media users for when engaging with companies the very bottom of the list this is how they want to be engaged the very bottom of alyssa's oh please mark it to me send me a banner ad how many people wake up waiting for a banner ad to hit them okay I just can't wait to get online and get that get that pop up oh okay but higher on the list is offer me incentives ok this is recessionary environment we can understand that solve my problems customer service experience right and then entertain me like General Mills is doing we actually want brains to entertain us heck yeah we want to be entertained period when you think about it it's kind of like the analogy of two sports we in marketing love to use targeting and it is really like hunting kind of vernacular right so we're targeting the consumer and we blast ads at them hoping that something will stick and we can you know take this to the nth degree and be really targeted and so on but we're really hoping that the message sticks right we argue that it's not about hunting it's about fishing a more patient exercise where the real focus is on finding the best bait the best bait being that magnetic content that draws the fish out of the water to you there are plenty of big brands that you've heard of like Clorox and Procter & Gamble and Fiat we all know the examples that are using magnetic content but there's also tons of smaller companies that you've never heard of that are spending very little money and getting a lot of bang for the buck and a lot of reach and retail distribution and all kinds of good stuff by using these digital media by creating great magnetic content the bar for creativity gets that much higher I know at this point is anybody in the room in a business to business world a bunch of you good you're probably wondering jet this is all fine and well with all these consumer examples but I don't really know if this applies to me in my b2b world does content marketing work in the b2b world how about this presentation I'm a business your business b2b that that was kind of funny all right at least it's true all right think of all the white papers and newsletters at b2b folks put out over the years right now we have webinars we have eNewsletters we've got online video we've got twitter it's all the things they they are new tools in the b2b arsenal to create magnetic content I did an entire presentation yesterday about b2b a magnetic content I don't have time for that today so just trust me it's there high five criteria for magnetic content you really have to understand what is it that what is it that it takes to get to magnetic content the first two most important things if you do nothing else make sure its unique copycats no no no that's not going anywhere is it useful does it serve some valuable purpose and I mean a real purpose in the consumers life we also look at is it well executed is it fun and finally does it make good use of the channel in which it appears i like to ask this fundamental basic question what I personally want to receive this magnetic content assuming I'm in the target right and share it with others if the answer is no about congratulations you've just produced another ad good luck with that and it might work but it won't work as well if you create great magnetic content again the premium on the creative execution is that much higher we need to see less ads like this and probably a few more like this this was successful because it was unique yep certainly fun I shared it with a whole bunch of people and but we must have sat at one point of another family in ours where there was a six kids of us all together we probably spent 15 or 20 minutes on vacation watching this with somebody what's that worth to a brand and it was also extremely well executed right at this point Jim is wondering don't you love it when I just tell you what your thoughts are you have any more examples of brands being useful how many people have kids in the room I do too I've got four of them and this is my fourth this guy gets more mess on him when he eats then I've seen all of my other three kids combined in this case it's ice cream he loves that stuff so that's why Clorox came up with this the my stain app better work you or you can pull up your app oh my gosh little Johnny spilled the ice cream or soda on himself how do I get that stain out this could be gum and the neat thing is sometimes the solution is a clorox product this is a bleach company but sometimes it's club soda or something else you find around the house what their what they got right was they said it's not about pushing Clorox products it's about serving the customers needs beyond the product itself that's the challenge so we talked about is it useful but yani we come back to is it is it is it working this is something actually happening is it moving the dial there are just too many metrics out there I mean some marketers and advertisers to look at you know hundreds of metrics and they're just in this dizzy spell all day long trying to drinking coffee trying to figure it out what we are viewing the book and I don't have time to go through all of them now but I will talk about a couple visit there are seven key metrics to master 7 we tried to simplify get it right down to seven you put that you identify those seven and you put them in the right framework and you're going to have success on your hands the framework that we talked about is a hierarchical series of buckets to capture information about the consumer at the very lowest level where most marketers just kind of skit stuck is the exposure metrics okay exposure metrics are those low level metrics related to the performance of individual channels how many clicks did I get you know just really low-level impression based kind of stuff strategic metrics happen over time these are related to long-term brand health issues over time do people are people more aware of your brand more inclined to purchase it more favorable to your brand versus competitors again this does not happen in the nanosecond declare this needs to be measured in like pre and post surveys to find out our over time over months or in case b2b b2b examples could be years are we starting to move the dial in the consumers head right in terms of their affinity for our product or brand or service and then finally we do ourselves a disservice and we're going to be displeasing to the CEO and the CFO if we do not then tie to the highest levels of metrics used to quantify business performance are the dalek that I'm putting in leading to dollars going out in such a way that I'm actually making money that is the purpose of most businesses all right the most critical thing here is that we have to establish linkages we go in depth about that in the book but the idea is that you can correlate those lowest levels of metrics to the next level strategic metrics to the next level financial metrics if I do this it work it results in this kind of exposure and if I do that those those metrics lead to the next set which is correlated with changes in the brand consideration and so on right up to financial metrics and the very one at the bottom here is that we want to introduce another new term which is not just reach which in the internet world tends to be just raw impressions there was an opportunity to see the message we say let's qualify it let's make a qualified reach which means that there has to be some physical manifestation of behavior that suggests there was actual cerebral or emotional engagement going on on the part of the consumer sometimes I mean a click could do that in some case is if your direct response but there am i watching a video is there some kind of action I take that suggests i am involved in thinking about your product or brand it will be a smaller number a smaller your impressions but it will be more illustrative of what's really going on with the consumer and therefore a much more powerful set of metrics

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