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The Integrated Marketing Playbook: How to Create Simplicity from Complexity


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Digital marketing has the potential to achieve the dreams marketers have held for generations: the ability to directly reach potential customers at the right time, with the right message, every time. …

Digital marketing has the potential to achieve the dreams marketers have held for generations: the ability to directly reach potential customers at the right time, with the right message, every time. This dream consists of the extraordinary ability to track marketing efforts and consumer behavior in order to optimize budget and understand the audience and what is most effective, as well as the innovation and technology to manage all of this efficiently and easily.

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  • 1. The Integrated Marketing Playbook:How to Create Simplicity from Complexity A fundamental guide for digital marketers
  • 2. The Integrated Marketing Playbook: How to Create Simplicity from Complexity A fundamental guide for digital marketers
  • 3. 4 Foreword7 Chapter 1 The Evolution of Direct Marketing to Integrated Digital Marketing17 Chapter 2 Setting Your Organization Up for Success27 Chapter 3 Tools and Technologies for Integrated Marketing37 Chapter 4 Centralized Data for Actionable Insights43 Chapter 5 Bridging the Gap: Advertising, Conversion Optimization and Marketing Automation49 Chapter 6 Optimization: Get More, Do More, Learn More57 Chapter 7 The Future of Integrated Marketing65 Chapter 8 Discussions on Integrated Marketing78 Glossary of Terms80 About IgnitionOne 3
  • 4. Foreword Will Margiloff, CEO | IgnitionOne The Integrated Marketing Playbook: How to Create Simplicity from Complexity D igital marketing has the potential to with their own data sets and their own way achieve the dreams marketers have of looking at the conversion path. In addition held for generations: the ability to to data and tools, the silos set up in our own directly reach potential customers at organizations end up working against central the right time, with the right message, every time. marketing goals by putting the focus on the This dream consists of the extraordinary ability to success of individual tactics or channels. track marketing efforts and consumer behavior This structure does not have to be the norm. It in order to optimize budget and understand the is possible to integrate your marketing. Break audience and what is most effective, as well as down those silos, break down the walls, connect the innovation and technology to manage all of the dots and centralize data, tools and efforts. this efficiently and easily. We have written this guide to serve as a While achieving this dream is closer than it has valuable resource when mapping out how to ever been, digital marketing has become so approach integrated digital marketing in your complex due to the multitude of point solutions organization. It is our goal to answer some core that have flooded the digital landscape, each issues marketers face:4 Foreword
  • 5. What are the central challenges to achieving We hope that the discussion won’t stop here integrated digital marketing? and that you will continue to comment and How do I set up my organization to facilitate share your thoughts on integrated marketing. and take advantage of integration? Please reach out and share your feedback with us anytime at or on How do I centralize tools, data and Twitter @IgnitionOne. measurement to achieve integrated marketing? Will Margiloff What is the payoff for integrating my CEO marketing? IgnitionOneMany people assisted in the creation of “TheIntegrated Marketing Playbook” and their timeand efforts are thoroughly appreciated. Wewould also like to thank our CMO contributors,Julie Cary of La Quinta Inns & Suites and PeterMcDonough of Diageo for graciously agreeingto share their insights with us. Technology Centralized Media Data INTEGRATED MARKETING User Site Behavior Experience Aligned Goals 5
  • 6. 1The Evolution of DirectMarketing to IntegratedDigital Marketing 7
  • 7. The Evolution of Direct Marketing to Integrated Digital Marketing Stephan van den Bremer, Managing Director, Europe | IgnitionOne New Data = New Opportunity, New Responsibility T he phrase, “integrated marketing” requires data resources and ways to now seems as ubiquitous as analyze them. “synergy,” “thinking outside of the box” and of course, “paradigm shift.” Our industry has spent a lot of time recently But how many companies are actually moving talking about how we navigate lots and beyond the hype and executing the integration lots of data, so much in fact that we’ve just of marketing efforts well? In a survey done by decided that it’s, well, BIG. Beyond the buzz, the Association of National Advertisers (ANA ), 1 Big Data is about processing, segmenting 51% of marketers claimed to be developing and and understanding large amounts of data to executing integrated marketing programs for all be actionable in real-time. In that sense, the brands/products/services. This is up from 19% term “real-time actionable information,” would in 2006. So who are these brands and what are be more appropriate. Data is meaningless to they doing? Are they any more successful than a marketer, unless it can be translated into those brands not using integrated strategies valuable information. Similarly, a pile of bricks and tactics? is not a house. Reaching the level of having a unified and To be “actionable in real-time” is a very big holistic view on digital marketing programs statement in and of itself. For years, marketers 1 ANA Survey 1/20128 The Evolution of Direct Marketing to Integrated Digital Marketing
  • 8. have been able to piece together data for Point Solution Innovation:disparate media optimization systems, but Our Savior and Secret Enemythat data is crunched in a third party solution(often something as unsophisticated as Excel), Online marketing has come far in the last 17 years. In such a young field, we’ve seen soand then the decisions made off of that data many chapters of innovation as the industryare usually delayed as humans determine the has matured. From the early days when theproper action. This is a far cry from making big Internet was poised to change every facet ofdata “actionable in real-time”, and it is not really our daily lives and create world peace, to thepossible to act in real-time with such disparate days after the “dot com bust” when peoplemedia optimization. thought digital marketing would never pan outPut simply: If your marketing team is managing - we’ve seen many concepts come and go. But over time, the establishment and acceptanceonline media and site optimization via a series of core digital marketing channels has spedof point solutions while attempting to stitch innovation that marketers can, and must, keeptogether big data sets, you are already behind pace with to stay competitive. This innovationyour competition. has created huge expectations of the benefitsWe are already seeing the most innovative that new technology, new devices, andmarketers racing to consolidate their online new monetization allow people to connect, communicate and budgets into a unified DigitalMarketing Suite (DMS). In order to keep up with big data, marketers have added new point solutions, tested new tactics,This is the challenge that this playbook will collected new data and sometimes created newaddress. The innovative marketers we have metrics. In the beginning, the siloed results wereworked with to create this playbook call this amazing in comparison to offline methods – youThe DMS Imperative. could see, track and improve upon ROI much faster. For every marketer who’d ever promoted a product launch on a billboard, placed an ad in the paper or bought a radio spot – this was 9
  • 9. More on BIG Data Challenges Companies that are attempting to process and utilize massive data sets do so with the intention of making good things better for 1 Day = 2,250 movies companies and the customers they serve. What we’ve seen so far is that data can either do very good things or very bad things. And Let’s bring this back to companies and their more data is not always a welcomed thing. It’s customers. Customer data is growing by an immense new opportunity, but at times an 50% every year. Two billion people access overwhelming new responsibility. the Internet each day with over 4.3 billion mobile devices across the globe. That’s a lot Sifting the good data from the bad sounds like of devices, each creating its own share of an easy enough task. But in 2004, Facebook data, resulting in 2.5 quintillion bytes of data was a mere 1 million members strong and now it developed every day. More significantly, 90% has over 1 billion. Every day, 15 Terabytes of data of all digital data was produced in the last two are created by Facebook members alone. What years. This trend isn’t expected to reverse. We do we know about these Terabytes? A Terabyte are creating increasing amounts of data each could hold about 3.6 million 300 Kilobyte year. With all this in mind, online marketers images or about 300 hours of good quality have to be creative and technical while finding video – that’s 150 movies or 1,000 copies of the ways to transform this data into actionable Encyclopedia Britannica. Ten Terabytes could information and remain competitively nimble. hold the printed collection of the US Library of We’ve never before faced challenges like this. Congress. That’s a lot of data. I’d even say BIG2. But our history as an industry shows that as So everyday Facebook alone creates more data online marketers, we can prosper by adapting than the entire US Library of Congress. You’re with innovation and technology. That’s the starting to see the state of affairs that today’s only way to transform data into information digital marketer faces. and shift to actionable information. 2 The Evolution of Direct Marketing to Integrated Digital Marketing
  • 10. a major evolution. And this evolution also made by a sea of data but now a deluge of technologytracking consumer behavior and customizing vendors. Marketers struggle with separate datauser experience on websites a reality. streams that don’t communicate, in addition to disparate and often competing teams thatHowever, with all of these new methods of suffer from a lack of centralized and shareddigital marketing, things became very complex, goals. The results are silos across the marketingvery quickly. We‘ve now come to a point where organization that separate people, data andmarketers find themselves separated from the budgets, making the attainment of goals evercustomers that they wanted to reach not only more challenging. 11
  • 11. How Did Digital Marketing Enter Integrated Marketing Get So Messy? While integrated marketing is not a new thing, This culture of analytics and innovation being to some marketers it seems like a goal that built within silos has failed marketers in a major moves further away as they run toward it. But in way. Click-through rates plunged from around fact, the attainment of this aspiration is closer 5% when the dot-com market collapsed, to than ever. about .1% by 2011. In consolidating all the buying power, local advertising markets went under By integrating online efforts, marketers are with the promise of lower costs. able to merge all of these silos, eliminating the complexity that has been created through More recently, low barriers to entry have created individual solutions. By merging resources, a myriad of these start-ups, applications and tools, data and measurement, you gain the point solutions. They are often funded and unique ability to score all data sets in relation supported by venture capital backing that to each other. It’s the discovery of these looks to solve an immediate problem without relationships that allows integrated marketers the context of larger issues. And although each to categorize, prioritize and act across multiple tries to solve a problem (search, mobile, content channels in a unified manner to achieve a goal. personalization, etc) at a micro level, in doing so they create isolated online data sets, in addition Once we have taken a step back to see the to existing offline sets. And these disparate data forest from the trees, we‘re reminded that in sets ultimately become the major roadblock the midst of solving problems, we’ve lost sight barring the online marketer’s ability to interpret of the core goal: increasing customers and and act on a macro level. revenue. Messaging and efforts must be aligned So with every innovation to solve an immediate and prioritized across teams and technologies problem, a quieter and more detrimental to create a common language that can be paralysis spreads through an organization. leveraged across channels. The good news Resource allocation and prioritization is central is that this alignment can result in a single in determining a company’s success or failure methodology and metric that every team can and it requires actionable information. But relate to, interpret and act upon together. adding additional separate layers of data can actually result in less action being taken.12 The Evolution of Direct Marketing to Integrated Digital Marketing
  • 12. Fighting Past Isolation company at large. Budgets and goals were set at the beginning of the year for each channel for Future Results and the teams work feverishly in seclusion toAs obvious as the solution may seem, many earn a bonus for results within their channel.marketers are sitting in a sea of isolated data, Many senior marketers are incapable ofunable to develop insights and take action reallocating resources after budgets are setin union. The most common roadblocks are before the start of the fiscal year. So they findthe bi-products of two antiquated elements themselves beholden to a quickly obsolete– corporate structure and incentives. Just snapshot of business while operating in a rapidlylike data and reporting are siloed, people are shifting environment.also forced into arbitrary divisions due totechnology, budgets and goals. We find theperson running lead generation sitting next to,but not speaking to, the guys running the search Where is the Art?program or the Facebook community manager As much as organizational incentives andnot communicating with the Facebook ads collective technology decisions can serve as themanager. They all might as well be working for foundation for success, unifying the messagedifferent companies. is also critical. The core message should beEach group is focused on its own narrow area consistent across all channels, whether website,and in many cases, is hitting its goals in isolation mobile or print (leveraging the unique strengthswhile unknowingly becoming a detriment to the of each). Achieving data-centric precision but communicating a fragmented message may be the most painful type of failure in integrated Technology, Data and Measurement marketing efforts. Marketers should always In order to properly centralize data, to use know their audience and voice. The key tenants that data to measure a unified metric and of good marketing shouldn’t be lost in the midst then to use that metric to optimize your of wrangling data and technologies. marketing efforts- a clear technology inte- gration plan is needed. 13
  • 13. The Origins of and the opportunity for consumers to react to, create and influence them through social. For Integrated Marketing the first time, people have the ability co-create During the last century, direct marketing came their experience with brands. out of the realization that someone’s age, income, education, place of birth, etc., would make them more or less likely to be affected by certain Modern Digital messaging. Instead of one message and identity, Marketing Channels suddenly a brand could cater to the desires of people in unique and meaningful ways. Today marketers can take advantage of all channels and tactics that comprise digital This was a massive change in how brands marketing, including: paid search, natural started telling stories and creating desire within search, retargeted and traditional display, social, consumers. This simple idea revolutionized email, affiliates and site optimization. Each marketing and in many ways was the birth of the of these elements is based on the principles modern day advertising industry. of direct marketing. What differs is how the Online marketing does not go against the brand engages and interacts with that targeted foundation of marketing. The principles of audience - an important point as one starts to direct marketing still apply in full. Advanced orchestrate channels to work together in an segmentation of an audience through online data “integrated” way. allows the long-held vision of direct marketing to What makes a channel different is the be realized – a one-on-one relationship between experience it offers and where in the purchase the brand and the consumer. funnel it will be most successful. The purchase Understanding that online is not a new funnel is a useful organizational concept, used marketing method, but simply the purest form to see where a consumer is on their path to of direct marketing to date is important. And making a decision. This is especially useful in while the fundamental rules still apply, there digital marketing where it can be easier to track are two things that have changed – the ability the progress of a user through the funnel and to experience brand messages dynamically interact with him appropriately.14 The Evolution of Direct Marketing to Integrated Digital Marketing
  • 14. digital version of a hardcopy until the actual Attract content could be individualized based on data. Search was the first experience that put Engage the consumer in control of their own media consumption. Instead of being the passive Nurture recipient, the individual had direct input to the type of content and advertising he saw. Then Convert social changed everything: consumers had the ability to broadcast their thoughts and feelings and those messages were able to become advertisements in their own right.When display ads were introduced they simplyreplicated traditional ads until they were Bringing it Togetheranimated and interactive. The same was true The key to considering successful integratedof email marketing — a newsletter was just a marketing is to remember that while all online channels are based on direct marketing principles, each interacts differently with • Inspire your organization with an a consumer’s journey. To properly bring integrated vision and incentives everything together you must understand how • Align your technology and data to channels interact with the consumer, as well as support those priorities each other. This is the only way to allocate your marketing budget in the most effective way. • Unify but individualize your message across all platforms • Act and react by allowing the data to emphasize the experiences needed to carry the message to result in a conversion 15
  • 15. How Do You Get There? What Will You Get? In order to achieve integrated digital By fully integrating digital marketing, it is marketing, it takes a cross-organization effort possible to achieve a wide range of benefits. to align resources, goals, technology, data Marketers can work smarter by having and measurement. This is not to say that a centralized data, clear measurements, and marketer will not benefit at all from achieving unified metrics. Transparency of media mix partial integration. Marketers should not effects will enable the marketer to allocate lose motivation by the size of the task. Every budget most effectively. It will be possible to step toward integration is a step toward work more efficiently by having aligned teams improvement. and unified goals working with a streamlined and coordinated technology stack. Marketers can react more quickly and synchronized to new challenges and be able to truly leverage the insights gathered to reach and surpass goals. While there is a lot of work ahead, it is very much worth each step. Suddenly “big data” can mean better business, because above all, integrated marketing will deliver better returns on your marketing investment.16 The Evolution of Direct Marketing to Integrated Digital Marketing
  • 16. 2Setting YourOrganization Upfor Success 17
  • 17. Setting Your Organization Up for Success Roger Barnette, President | IgnitionOne Does this Sound like Your Organization? Y our company spends about the same alternatives by examining the incremental amount of money this year as last. effect on total revenue and total cost caused by Each channel gets slightly more sales a very small (just one unit) change in the output than the year before. It sounds like it’s or input of each alternative. time to celebrate and promote people, right? This aligns the organization. Marketers should Not so fast. look forward to optimal holistic potential. The lesser alternative is looking through the When you think about integrated marketing, rearview mirror with the satisfaction that you here’s the golden rule for the organization: it’s aren’t operating quite as inefficiently as last not about more channel specific conversions, it’s year. Unfortunately we can spend our budget about identifying the greatest possible potential only once, so we need to be sure that we spend for your spend across all digital channels using it in its most optimal way. Marginal Return Analysis and then tracking your Truly integrated marketing is the end goal for trajectory to reach that potential. many marketers. However, there are so many Marginal Return Analysis is the process of pieces to link and so many silos to knock down identifying the benefits and costs of different along the way. While integrating technology and18 Setting Your Organization Up for Success
  • 18. centralizing data to act on is clearly important,none of that will work without first addressingthe most important (and challenging) piece ofthe puzzle: the organization. ➊ CHALLENGE #1: ADOPTING MARGINAL RETURN ANALYSIS ACROSS YOUR TEAMSThere are four key challenges to address for Marginal Return Analysis supports decision-your teams to succeed: making based on marginal or incremental➊ All channels must be considered holistically changes to resources instead of one based on using Marginal Return Analysis for goal totals or averages. It is extremely important to setting. understand this principle and how to apply it.➋ You must get creative in how you develop Without this core piece in place, little else will data/performance-focused unity across result in an uptick in performance. Having a your team by eliminating “my channel” good framework like this to foster teamwork factions and identity distinctions. toward transparent, logical collective goals➌ Get cozy with IT as your ability to affect is the most critical element in aligning the change in digital is dependent upon this organizational structure. close relationship. PROOF POINT➍ Ensure budget allocation decisions are both Why is this so important? In a case fluid and centralized with allocation based study with Center Parcs, performance in on performance data. search and display were up by marginal percentages. But after integrating search and display they achieved a whopping 54% increase in revenue. When benchmarking performance by last year at the channel level the outcome may have been a gain of 4% when unknowingly the 50% gain was missed out on. That is the scary and exciting part for your organization. 19
  • 19. What Often Happens Today related to the display program without any connection to cross-channel efforts. This means in the Absence of Marginal that no marginal return is being considered Return Analysis holistically. This is the same in search, social, Today, many siloed department heads are email, etc. Unfortunately that measurement responsible for creating goals that incentivize of success does not map to the reality of how their teams to achieve highly focused these budgets perform or support the health of performance. The display team must get an overall business. Many organizations benchmark ROI of 3:1 based on spend and conversion data against the previous year’s performance at Start thinking possibility vs probability Marketers seeking to advance their together? How do all channels assist each organization will need to evangelize against other to reach a goal? Perhaps if all channels the desire to constantly look behind. Each are optimally aligned, search may directly person in the organization should consider produce less than last year as a channel, what’s possible versus what’s probable. but it serves a more valuable role by making That simple shift in framing questioning and significantly more total conversions possible. rationale will start to change their thinking. A short-sighted team can tell what will For example, a search team has $100 and sells probably happen based on doing what they’ve 10 widgets this year with search ads. At the always done, just slightly better. Integrated beginning of the following year, the manager is marketers need to implore what is possible. It asked how many widgets she could expect to is possible to move past “what you’ve always sell with the same budget. She might respond done, plus 1%.” Are you ready to see what’s that with some refinements and testing that possible? it’s probable she could sell 12 next year. But This holistic perspective and the improved net what is the potential of the search team, the results are at the heart of the DMS Imperative display team and the social team working challenge and goal.20 Setting Your Organization Up for Success
  • 20. the channel level. And while every channelmay perform better this year than last in totalnumber of sales for the same media spend, it isstill possible for overall potential to be harmed ➋ CHALLENGE #2: GETTING CREATIVE WITH ELIMINATING BARRIERS: MARKETING TEAMS ARE LIKEby a significant margin. This seems like aparadox, but it’s not. MEXICAN FOODThe classic example is if there is land and a What’s the difference between a burrito, anfarmer plants a crop, the result would be the enchilada and a soft taco? Not much other thanamount of crops planted and the profit you get whether the sauce and cheese is inside, outsidefrom the crop if he sells it. If he buys a tractor or on the side. But people perceive them asand the amount of farming land remains the different because they’ve been taught that’ssame size, productivity and profit will increase. how things are. The same concept applies forBut, if he buys another tractor, the profit will not the marketing organization. Each departmentincrease the same as before when he bought is a part of a greater whole and the sequencethe first tractor. In fact, his profit will decrease. and placement of these parts is what matters,Looking at tradeoff decisions to maximize the not the parts themselves. So often peopleperformance of your digital teams differs little refer to “the display guys” and “the searchfrom the farmer maximizing crops. Everything guys.” But nobody prefers to eat sour creamis interrelated. or cheese alone. Each piece contributes to the resulting whole. Three Keys: Make the idea of collective team performance 1 Adopt Marginal Return Analysis holistically a fun and inspiring effort. Start by finding ways to change your language and team metrics. 2 Stop using last year’s channel-level For example, search conversions and display benchmarks conversions should only be referred to when a 3 Strive to look for the greater missed single exposure lead to that action. Marketers opportunity of integrated optimization like can uncover the most critical paths and create Center Parcs identities around them. For example, if 20% of 21
  • 21. conversions come from a display click followed to make this manageable for an organization, by a search click, then maybe one should call there can be a number of integrated teams with that a disearch. It’s not about the parts, so a digital head. Instead of having search, display, marketers should be encouraged to create their social and conversion optimization teams own language that embodies the parts and that focus on campaigns related to multiple makes it fun to break old patterns of thought. products or promotions, smaller integrated This new vocabulary can drive common thinking teams could operate independently. To foster across the team. If that sounds silly to you, then discipline and excellence, there should still just take to heart that changing old habits will be educational forums and events to refine require new creative thinking. Simply saying, skills and share best practices, but the days of “we are one team” won’t cut it. discipline departments as the primary structure to which people identify themselves has come to an end. If you want your team to produce an integrated mindset and strive toward an disearch /dis ‘s r CH/ integrated result, then you need to promote the e DEFINITION right team relationships and identity. noun the conversions that come from a If you’re a small company, then by necessity this display click followed by a search click. may come easy to you in that one person has to manage and optimize multiple disciplines. If you’re mid-sized, where there may be 3-5 people managing, then again this should also be easy as long as there is one person adept at actually optimizing multiple types of media Today’s model of having a head of discipline to lead the team. The person leading the team at the channel level will no longer do the should have hands-on experience in multiple trick in our cross-channel world. While it’s still channels if you’re serious about getting good beneficial to have discipline specialists and results. If you’re a larger corporation or looking senior members on that team, any heads of to outsource your digital marketing to an department should be cross-functional. In order agency, then the above applies. As the client,22 Setting Your Organization Up for Success
  • 22. you have the right to know how an agency isstructured and led. Structure reflects strategy.If your integrated agency is still working in silos,then it is time to take a deeper look at how ➌ CHALLENGE #3: WHAT ABOUT I.T.? With all of this data and technology in thethings are being managed day to day. mix, we haven’t mentioned much about new necessities and dependencies. Surveys suggest that the single biggest barrier to a company Three Keys: embracing Big Data is creating the business 1 Get creative in the ways you use language case behind it. This is often tied to the fact that and internal metrics to reflect your with all this new data there are increased costs dedication to being an “integrated team.” not just in hardware, but the staffing to make and keep it working. So with all this innovation 2 Evolve your team structure internally to and technology most marketing teams are still reflect your direction in implementing yet to include technologists. integrated marketing strategies. 3 Ensure that any agency you’re working with to execute integrated marketing and Are Your CMO and has the right internal structure to make CIO Best Friends? it a reality. We can see evidence of this in a study titled, “Why Leading Marketers Outperform3.” It shows that in companies where CMOs and CIOs worked closely to build a “system of engagement” — an integrated and innovative set of technologies and processes that are born out of marketing and IT collaboration, performance increases were significant. As a group, enterprises with forward-thinking marketing organizations that engage customers effectively and invest their marketing spend better have a three-year3 blog/2012/10/20181.html 23
  • 23. revenue growth that is more than 40 percent So How is This Done? higher than other companies. And their gross profit is growing at a rate double that of their With results like this coming from the partnership peers. Some highlights include that these between marketing and IT, it begs the question companies are: as to what it would look like or how it would work best. As much as some companies have 33 percent more likely to serve personalized built highly specialized systems, others just or targeted offers in at least four channels in need a tag placed on the website for tracking real-time. capabilities or a new widget to work within the 36 percent use location-specific mobile homepage of the website. messaging campaigns and ads compared to the 20 percent without a system of In order to accomplish day-to-day functions engagement. necessary for integrated marketing, some basic functions of IT must be accessible and 48 percent of the top performers are using or streamlined. More fluid changes needed for plan to use, social/local group buying in the websites, social media and tagging for analytics next 12 months. As for the group without a ideally will fall under the management of the system of engagement, that number drops marketing function. Many organizations fail to significantly to 31 percent. understand the size of missed opportunities According to the study, currently 88 percent and the death of ambition when they face a of leading companies engage in attribution six-month queue for any change to tagging. In in some way and of that group, 93 percent order to have a positive relationship between have a set process for determining marketing the CMO and CIO, these more base tasks of activity results. Clearly integrated marketers accessibility must be made self-sufficient for are getting more and they’re doing it not just the marketing function. Without the ability to by selecting technologies but by building their make basic changes nimbly to fundamental own internal systems. pieces of the marketing infrastructure, progress will halt.24 Setting Your Organization Up for Success
  • 24. Three Keys:1 With more data and technology, the relationship between marketing and IT ➍ CHALLENGE #4: CENTRALIZED, DATA-DRIVEN DECISION MAKING + FLUID BUDGETS = SUCCESS has never been more critical.2 Companies that have these departments Now that we’ve covered team structure and working in collaboration consistently the relationship with IT, we should speak a bit outperform the competition. about decision-making and budgets. In using a data-driven approach along with Marginal3 Basic necessities for integrated marketers Return Analysis, it’s critical that the planning like tagging, updating the website and and allocation of resources is reactive. This social media must be able to be executed means that you can’t plan static budgets for autonomously from IT. each channel and expect them to work as part of an integrated marketing framework. Who’s Your Integrated Decision Maker? In the evolved team structure, heads of integrated digital will do the budget allocation. By leveraging attribution, you will gain the full ability to correctly allocate this budget weekly, monthly or quarterly. As there are no heads of departments, the political fighting over bigger budgets equaling more staff and more supposed prestige in a company become moot. When the budgets are fluid and reallocated regularly and the person authorized to approve 25
  • 25. the allocation is impartial to channel politics Where to Start? and making the decision based solely on data, the organization is free to act efficiently and When discussing these broader topics, in the company’s best interest. We’ll discuss marketers often state that they feel attribution analysis and budget allocation more overwhelmed and don’t know where to start. in later chapters. But if you can’t re-allocate To overcome this, marketers need to focus and more or less budget throughout the year based align budget with testable media. Marketers on what the data is telling you, then that is a should start where they can achieve the biggest major roadblock and making any other efforts impact and work downward. None of this has toward success become significantly limited. to happen in unison to make a major impact on efficiency in the near term. Three Keys: 1 Allocation of resources needs to be Summary reactive to data. The alignment of the marketing organiza- 2 The person heading an integrated team tion needs to change as much as the digital should be able to make that decision. marketing environment. Before making con- 3 The inability to reallocate budgets siderable investments in technology platforms throughout the year is a major roadblock and partners, the fundamentals of the organi- to integrated success. zation need to get ironed out. The easiest and most significant step to take in getting there is to move to goal setting and budgets based on marginal return goals. With that initial piece in place, other aspects will start to more easily follow. The relationship between the CMO and CIO will continue to evolve over time as market- ing and technology become further intertwined when discussing a company’s strategy.26 Setting Your Organization Up for Success
  • 26. 3Tools andTechnologies forIntegrated Marketing 27
  • 27. Tools and Technologies for Integrated Marketing Dave Ragals, SVP Client Services | IgnitionOne F or marketers working towards true The Jigsaw Puzzle integrated digital marketing, the biggest obstacle in reaching this goal Choosing to go the path of integrating multiple is often their technology and tools. solutions is a direction that many take, but it The current arena of marketing management often proves an uphill battle. One initial challenge technologies is oversaturated with single point is finding solutions that can truly integrate, as a solutions with multiple platforms existing for majority of these systems have been developed every aspect of digital marketing. Navigating this by independent companies. Finding a package of complex landscape is a daunting task and presents platforms that all work together in a truly integrated numerous challenges to managing integrated fashion — and will continue to scale that way– can marketing. What is most frustrating for many prove next to impossible. Most systems have some marketers is that the technology they sought out form of API integration, which essentially means to make their lives easier actually is the piece of the they can import or export data: but how they puzzle that will hold them back from integrating actually interact with another platform’s data can their marketing in an effective way. be very limited. So just because two systems can talk to each other doesn’t mean they can have a To get to the next level of integration, marketers productive conversation. can approach this challenge in two ways – integrating multiple single-point solutions together Major insights may be overlooked as integration of or leveraging a multi-point solution. the data is likely to be only surface-deep.28 Tools and Technologies for Integrated Marketing
  • 28. Trying to integrate separate solutions can be needs under a single platform. The goal ofinefficient from a business standpoint as well, integrated marketing is to consolidate theas it means identifying the right solution for many silos that marketing organizations workeach part of a digital marketing program and in, and this is even more important for thethen managing numerous disparate vendor tools they use. In order to best take advantagerelationships. Each piece of the puzzle runs its of the benefits of integrated marketing, theown risks and challenges and managing them marketer is advised to reject piecing togethertogether can be counter-productive. individual systems and instead leverage a multi-point or centralized solution such asPerhaps the biggest risk is that the market a digital marketing suite (DMS). This type ofcannot continue to support all of these individual centralized solution will allow the marketer topoint solutions long-term. Many of these manage multiple channels, run cross-channelnascent providers are backed by VC money and attribution, view all marketing analytics in acontinue to operate at a loss. Consolidation has single place and can include other featuresalready begun and in a few short years, many of such as on-site optimization and eventhe names out there will dry up, forcing users of proprietary RTB systems. The challenge herethese products to scramble for replacements. is finding an all-in-one system that has best- of-breed solutions in each area, or at least in the areas that are most important to the Simplifying the Chaos marketer. These systems, too, often have API integrations that allow the platform to tie intoIntegrating your digital marketing tools can be other single- or multi-point solutions to helpdifficult, but the benefits are sizeable. Done round out capabilities or to better meet thecorrectly, not only does it allow for a more marketers’ needs. As capabilities within theseefficient use of time and resources, but also systems grow and functions centralize, theoffers the potential for deeper insights and need for API integrations will decrease overgreater returns on marketing investment. time but due to constantly changing needs willOur recommended approach is to seek out a never fully go away.unified, central technology solution that canbring together all of the digital marketing 29
  • 29. Paid Smart Search Retargeting Organic Display Search Media Mobile Facebook Optimization MEDIA OPTIMIZATION IS JUST ONE PIECE OF THE PUZZLE. Marketers have begun to demand these This has already begun to happen with mixed centralized solutions, and as the market results (Google’s acquisition of DoubleClick and continues to mature, it will continue moving Adobe’s acquisitions of Efficient Frontier and away from single-point solutions and toward Omniture are two examples), and this trend will truly integrated platforms. Many of the likely continue. Others will build single systems individual solutions will be acquired by bigger designed and developed organically around the companies who, in turn, will look to invest idea of a DMS. heavily in merging these disparate systems.30 Tools and Technologies for Integrated Marketing
  • 30. The Payoff Even little things, like whether you have to hit “submit” after making a change, can differThe benefits of integrating technologies are between platforms and can result in changesimmense. It is truly a situation where the whole a marketer thought they had made neveris greater than the sum of its parts. Some going through.benefits that can potentially be gained by a True Attribution. A single platform also meanscentral technology include: that the data that lives within a given channel Single Data Source. From a marketer’s is already de-duped and attributed without standpoint, it creates a single source of going through a maze of technology, such as data which leads to consistency throughout going through an API to a separate system efforts. The ability to see paid search, display for attribution against another channel’s data, and social marketing data, for example, which is coming in from yet a third platform, in a single dashboard and with detailed to be processed and then sent back to the reporting creates huge workflow efficiencies, original system. Unattributed data can be as marketers only need to log into and very valuable for deep dive analysis, but it’s understand in detail how to use a single of little to no use when trying to optimize platform. Whether each channel is managed accounts in real time. Having this data by a different user, a separate agency or by together opens the door to innovative ways the same team, this continuity in data and to understand users, their actions and the workflow ensures smoother and more reliable effect of media on them – such as optimizing work. It also means not having to switch based on engagement levels. A single system between browser tabs or applications to see also cuts down on potential points of failure data for different channels. or lag between disparate solutions as well as Fewer Errors. Not only is a single platform potential for delays or errors in one system less confusing and more efficient, but it also creating problems downstream that then cuts down on the opportunity for errors have to be fixed by multiple partners. introduced by forgetting which system Removal of Silos. Properly-aligned technology someone is working in or how to accomplish results in a single – and consistent – source for the same task between different systems. training, technical support and best practices. 31
  • 31. As digital marketing becomes more complex go beyond merely relying on human-built and integrated, the lines between channels business rules. The result is a higher efficiency and solutions blur. If a marketer has a through bringing the right message to the question concerning the impact to attribution right people at the right time. of paid search on a remarketing campaign, is that an attribution question, an SEM question or a display question? With an integrated What to Look for technology, all that matters is that it’s a digital marketing question and the expertise for all Navigating this landscape and selecting aspects resides with the same partner. It the best solution can be very complex; it is also cuts down on the wild goose chase that critical for marketers to understand their goals results from each vendor pointing to another before initiating the process. Some important for answers or fixes. considerations include: Provide Deeper Insights and Greater Returns. Which channels and tactics need to be By having data coming from a single source, managed through technology? Feature attributing success across efforts and more sets can vary greatly, so it’s vital to consider profoundly integrating marketing across the which tools are necessary for managing each board, a marketer opens the door to deeper channel. Large, complex SEM accounts may insights. With these insights, budgets can be need bulk editing capabilities, while creative more intelligently, and even automatically, repositories can be invaluable for Facebook managed and returns on investments can Marketplace Advertising. Make sure to match reach new heights. your channels’ needs with the solution you choose while keeping an eye on flexibility to Steering of Marketing Automation. By having handle future requirements that may come up. a holistic view of data we can steer better content and interactions on the website. Which other efforts, potentially managed This, in turn, will improve user experience by other partners, need to be reported on and conversions. Using all this data also gives and attributed in the same platform? While us the possibility to create high performing specific channels may be managed directly algorithms for marketing automation and in the system, other channels – whether32 Tools and Technologies for Integrated Marketing
  • 32. “unmanaged,” like organic search or managed What are the requirements for accessing hugeby other partners – can still be tracked within sets of data that typically can’t be transmittedthe same platform. This allows the marketer to and/or presented efficiently in a Web-see reporting in one place and obtain a more based interface? Even the most advancedthorough understanding of how channels Web-based UI can run into bandwidth orwork together. With this knowledge you can rendering limitations when trying to deliverfocus on solutions that allow for integration or manipulate extremely large sets of data.with these externally managed channels. If huge files are necessary, how can they be How important is cross-channel attribution? delivered and can they be pumped directlyMany marketers are still tied to standard into an internal data warehouse? Understandmodels like last-click or, even worse, they allow your data and bandwidth needs and find aeach channel to be optimized in a vacuum, solution that won’t limit you.without taking into account the interactions Is the primary goal branding, direct responseamong channels. Integrated solutions or both? Being able to optimize to and reportcan provide the ability to allocate partial on performance requires setting specificcredit across a range of exposures, allowing goals and identifying the right metrics. Thesemarketers to understand how certain channels can differ greatly between direct responseor campaigns feed the funnel. As almost all goals, such as CPA and ROAS, and brandingmarketers are juggling multiple channels and goals, such as acquiring new users, propensitycustomer touchpoints, attribution needs to be to convert and session time. It is important totop of mind when integrating technology. find a solution that can meet your specific What are the plans for growth? Managing goals.integrated marketing together helps grow Who needs access to the day-to-daythe whole pie with continuous cross-channel management tools? Who needs access tofeedback, leading to growth in marketing reporting? Does management or the clientprograms. By having an idea of long-term need to be able to log in to see how campaignsneeds, marketers can prepare for success are being managed or just view reports? Doand choose a flexible, scalable technology reports need to be available on-demand, orsolution. can they be scheduled to run and be emailed 33
  • 33. on a recurring basis? All stakeholders need to platform that best suits the company’s overall be satisfied and armed with the tools to help needs and properly manage cross-departmental them succeed. expectations. What is the level of service needed? Even the most sophisticated marketer can benefit from experts who have deep insights into Pitfalls to Avoid the challenges they face. It is key to find a When attempting to develop the best technology backed by top-level service. Talk integrated technology solution for a marketing to current clients. Ask questions about client organization, there are many potential pitfalls retention and relevant case studies. for marketers to avoid. If the following are How far do we need to link online channels side-stepped, a marketer will be more likely to with click behavior on the site? Linking things succeed. like keywords and display to conversion Not looking long-term: A common pitfall actions on the website is mandatory and used in this process is failing to look long-term. in most tools nowadays. It’s good but gives us Marketers who consider how they may roll out only a one dimensional view of our campaigns. a platform across all channels – as opposed Campaigns are ranked based on their ability to just looking at, say, paid search for now to convert people, nothing more nothing less. and waiting on the others – will find much Advanced metrics like brand awareness and greater success down the road. Benefits of engagement are not measured if we take moving to an integrated platform can be felt only conversion points into account. With the almost immediately via easier workflow and analysis of all click stream data we can not more efficient reporting. But considerable only measure conversion but also potential value comes in the mid- to long-term with future conversion and engagement. better insights of how channels work together A lot of these questions can only be answered through attribution, lower training costs for by involving stakeholders. By seeking their new employees, business efficiencies through involvement up-front, marketers can put fewer vendor relationships to manage, etc. themselves in a better position to choose a34 Tools and Technologies for Integrated Marketing
  • 34. “Switching” costs between platforms can By allowing separate data sets in individual be extremely high. Implementation, training point solutions, the marketer enters worlds and simply becoming comfortable with a of parallel data which causes confusion and new partner to help manage complex digital mistrust between departments. Combining marketing campaigns is a big investment them into a single source prevents efforts and not one that marketers want to have to from working at cross-purposes and allows repeat frequently. Switching can also mean a the marketer to see how each piece supports disruption in the constant inflow of data from the other to grow the whole pie. one system to the next. Companies that move from platform to platform every couple of years can find themselves constantly behind Summary the curve as they start from scratch and need to get back up to speed on data collection, The technology decision is at the center of implementation and training each time. This an integrated marketing strategy. The right is exponentially true for those changing solution will best match the marketer’s needs solutions for multiple channels. and create both operational and technical efficiencies and consistency. It will lead to Failing to think through the impact on data: higher ROI through better performance and Centralizing reporting across channels results lower management costs. By merging channels in a common data set used by the entire together, the marketer gains the tools needed to digital marketing team. It allows marketers more effectively manage campaigns cohesively, to de-duplicate orders and use attribution cutting down on waste and ensuring that all models to better understand how channels are teams are working together. It also makes it working together. It also creates a single set easier for marketers to tout the results. From of digital marketing data that is shared across a cost-saving standpoint, picking the right teams. This provides operational efficiencies integrated solution can make this investment a and cuts down on wasted media spend as one-time cost that pays off over the long run. individual channel owners can work together instead of competing for the same purchase. 35
  • 35. 4Centralized Data forActionable Insights 37
  • 36. Centralized Data for Actionable Insights Dave Ragals, SVP Client Services | IgnitionOne B ig Data is a term we hear a lot about, of your users, how they interact with your but it is easy to forget that bigger marketing efforts, conclude what is successful is not always better. Marketers have and then automate your optimizations. Let’s become buried under a mountain take a closer look at the situation… of data that comes from a variety of sources – separate marketing systems, analytics, reports, vendors, internal teams, etc. We asked The Data Mess for all this data, we wanted to be smarter, to understand more. But the data that was The concept of centralized reporting is nothing supposed to make us smarter in the end has new. Analytics platforms have been around only paralyzed us. Having all of this data and for years, and many companies also manage a no way to act on it in an instantaneous and separate internal data warehouse. These “back- automated way puts us in a situation where we end” data solutions ensure there’s an archive are data rich but insights poor. of website activity that can, through heavy analysis, help businesses better understand So what do we do now? In order to reach the their website visitors. goal of truly integrated marketing you need to wrestle this Big Data and centralize everything. But as digital marketing has evolved, the A single repository for all your information granularity of data – and the ability to use it allows you to actually obtain a clear picture in near real-time to make effective marketing38 Centralized Data for Actionable Insights
  • 37. decisions – shifts the need for centralized data engines – or display networks or affiliates, forup front for marketers to use before and during that matter – work together.campaigns, not just after. The downside, of course, is this puts deepSingle-point solutions have helped part of this channel-specific data in silos. By shifting theproblem by providing marketers with in-depth depth and breadth of data back up to the front,and instant (or close to it) access to data for their the marketer winds up back where he or sheindividual channels. Paid search practitioners, started – with more actionable data, perhaps,for example, can use a platform to access all but still in multiple sources. And there’s noof their SEM data and pull various levers in means to look across channels to understandreal time based on this rich data. Marketers how they’re working together or how muchcan better understand how different search someone is overpaying for a given action. Third PARTY • Blue Kai • Exelate • Others FIRST PARTY (CRM) • Customer ID TRANSACTION • Subscription Info: • SKU, Data, package Renewal date, package, • Attributed Exposures lifetime value • Order ID • Demographics • Conversion Events • Anonymized PII: Credit score, etc EXPOSURES PROFILE • Display Requests – lost & won: time, creative, bid, • Interests URL,geo… • Propensity to buy • Search Click – time, kwd, CPC… Visitor_ID: • • Device ID Geo • Site Optimization 18uqzyyfkrmxc Interactions • Other: email, affiliate On-Site • Click PathCENTRALIZING DATA ALLOWS YOU TO FOCUS ON THE USER LEVEL. 39
  • 38. Enter the data warehouse. Channel-specific Attribution to the Rescue data can be exported out of all the various point solutions and stored in a centralized location. Much has been said about attribution over From here, an analytics team can run cross- the past few years. Most marketers agree that channel analysis. But that still can’t happen simple first- or last-click models are no longer until after the fact. And the marketer is back to viable and managing and reporting on each where he started. channel in its own silo is completely inefficient. Whereas with individual point solutions, the same sale could be claimed by all the marketing Break the Silos channels in the funnel. In a centralized system, these can be de-duplicated at a minimum or The way to break this vicious cycle is to have attributed through multi-exposure models that data for all channels in a centralized platform, give partial credit across all channels. updated as frequently as a point solution, while running attribution at the same time. This This has given rise to an influx of attribution creates the best of both worlds – real-time systems and services. Many follow the same data, de-duplicated and attributed across all point-solution approach – a standalone system channels, usable by the marketer and accessible that can import marketing data across channels by all from a centralized system. This way, all and run attribution analysis to be returned to media decisions, optimization and reporting are the marketer. performed in the same place using the same This, of course, is fraught with some of the same data set. problems as any point solution approach, and it introduces some new ones. While data is attributed and housed in a central location and can be sent back to the other point solutions for campaign management, it’s far from immediate. Channel-specific data has to be passed from all point systems to the attribution system, where it’s processed and fed back to each platform.40 Centralized Data for Actionable Insights
  • 39. That has inherent delays and creates multiple Centralized Reportingpotential points for failure. And these can easily is the Answercascade – a communication failure between thesearch point solution and the attribution system The only sure way to avoid all of these headacheshas an immediate impact on all the other point is through truly centralized and the teams that manage those Once the decision is made to centralizechannels. As with anything, a chain is only as reporting, the next questions are what and howstrong as its weakest link. to measure. A user’s path to a sale or sign-upNot only does this put data at risk, it creates can touch on numerous marketing efforts. Sologistical and resource issues as well. making sure all of those channels are tracked isCoordinating and managing each individual critical. Some obvious and common channelsintegration and keeping tabs on these multiple include paid search, organic search, display andflows of data can be a full-time job in and of itself. social media. But there are others to considerIt also means multiple business relationships as well.and the risk that if one solution changes its Marketers with active affiliate programs norequirements or technology, it could impact the doubt see high numbers reported by theirrest of this forced alliance. partners. This makes sense, as affiliates rely heavily on users who have already made their decision and are about to take action. But most of those users were driven through awareness and interest nurtured by other channels. So tying all of those efforts – up to and including that “coupon” or “promo code” search that got them to the affiliate site – is a    key piece of the puzzle. paid search display organic search conversion 41
  • 40. The same can be true for email, as the user has It goes beyond removing duplicates and proving likely already engaged with the brand’s site that each channel doesn’t get full credit for a when they provided their email address. Did that single action. This alone can create immediate email blast close the sale, or did it re-engage the efficiencies, as the marketer is no longer paying user to the point of interest? Once again, seeing double or triple the target CPA for a single where email fits in the funnel is important. action that came after a paid search click, a remarketing view and an email blast. And once the user visits the site, what part does user experience and content personalization play? Communicating with your audience does Cross-Channel Optimization not end with advertisements. When all is said and done, compiling all of your There could, of course, be other channels too, data together allows an understanding of what so having a firm understanding of the different efforts work together to move you towards touch points before starting down this path is your goals and where to best spend your essential. money. You begin to see that it is not about a Another important consideration is that single campaign, a single keyword or a single attribution is a means to an end. Crediting message. Your marketing is a holistic beast and different exposures across multiple channels one that you can now tame. provides the marketer with a better understanding of how they’re engaging with their users and getting them to convert. But it’s what they do with that knowledge that really matters. Unless marketers embrace this and use attribution to help adjust their media mix to increase the overall pie, it will be simply another bright, shiny object. To keep the luster from fading, it’s important to know what to measure.42 Centralized Data for Actionable Insights
  • 41. 5Bridging the Gap:Advertising, ConversionOptimization andMarketing Automation 43
  • 42. Bridging the Gap: Advertising, Conversion Optimization and Marketing Automation Filip Lauweres, VP Client Services, Europe | IgnitionOne O ne of the tasks of digital marketers and advertising is providing us with ways to link – and marketing professionals in campaigns, analyze them and attribute the right general – is bridging gaps. We value. Connecting the dots or tearing down the advertise on the Internet to bring silos –when done in a proper way – will result in people to our site, and once they land there, higher conversion rates. we try to convince them to interact with us Of course, there are already prospects ending by filling in forms or by reading the content their online journey by filling in forms and we have prepared for them to eventually buy starting chats with sales people, for example. something or to better position ourselves in the But this is only a very small percentage of all consumer’s mind. visitors. We can do more and we can do better. Going from the Internet to your website and The next step in bridging gaps is ensuring that from there to conversion is about bridging gaps. websites deliver concrete performance. Digital Every step of the way, people are dropping marketing strategies must convey relevant out of the funnel and “great marketing” will content and facilitate dialogue with customers convince them to stay. pro-actively without increasing spend. As a digital marketer, we have tools and data These trends – personalization and interaction – “big data” – to optimize our advertising and - will be key. website strategy. Moreover, digital marketing44 Bridging the Gap: Advertising, Conversion Optimization and Marketing Automation
  • 43. Active personalization through behavioral of the website visitors. This analysis is calledtargeting is the first key element. Because of the behavioral targeting and is far more powerfulnear-infinite variety of content available online, than the current methodologies. If used incustomer engagement becomes increasingly a proper way – in line with privacy laws – thisimportant. Providing “sticky” content is not approach is highly beneficially for the onlineenough anymore; matching this sticky content audience. Behavioral targeting can be used toto the individual website visitor is becoming a show the right audience a specific white paper,necessity. product information or video. But behavioral targeting does not end there. It’s also usedThe right content, delivered at the right to assist with analyzing the vast amount ofmoment and to the right audience will be one of data generated with social, search and displaythe leitmotifs of the e-future. If you look at the advertising campaigns.success of television on demand, web contentmanagement systems and interest-specific This analysis is called engagement optimization.blogs, you will see the huge potential. But … Engagement optimization is based on aall of these technologies are based on declared combination of conversion and engagementpersonal preferences. You have to actively metrics of a visitor (behavioral analysis) andselect your interest in jobs, news, movies and the was created to empower marketers to movewebsite will respond by adjusting its content. beyond last-click attribution. This encourages key decision makers to gain true insights onThis approach is changing as we speak. More how to attribute the correct credit acrossand more websites are adopting their content search, display, Facebook, email and affiliatenot only in line with the declared interest of web visits before making decisions.visitors but also based on their un-declared or“behavioral” input. The result of active personalization – when used in advertising or site optimization – isThis is done by analyzing the history of the generating a much better user experience andonline behaviors of an individual or a group more repeat visits to companies’ websites. Inof people and by observing their behavior in other words, the results are higher customerreal-time. Using this data, websites today can engagement and more conversions.pre-determine the true, undeclared interests 45
  • 44. Cross-Channel Interaction is the second key- An Example: How a website should work input. Though people do increasingly more by Stewart Holt, Sales Director UK things online, it is the blend of the digital marketing with the offline marketing – ‘the Picture this: It is Saturday afternoon and you clicks and the mortar’ – that really helps are out shopping. You enter a suit shop. You companies get the most out of their websites. were here last week but didn’t  really  have Keeping this in mind and combining it with the time to browse properly. You tentatively technologies such as behavioral targeting will walk in and start looking around at all types be the core of successful business websites in of suits; grey, brown, black, navy. You decide the future. New and smart technologies – such that you feel that navy is  the route you as behavioral targeting - can be used to blend want to take, so you start looking at the cut, online interactions with real-world, human price,  and  size  of navy suits. You are not interactions. convinced that you really need or can afford a new suit, but you are becoming increasingly By connecting digital to the right “real life” interested. Should you try on a suit or walk interaction channel – a paper brochure, an away and spend your money elsewhere? instant messaging chat, a phone call – websites will become what they should be: a business During this time, a sales assistant has been tool that brings return on investment. monitoring your behavior – and he is good. He recognizes you from your visit last week and notices that you have been in the store for some time. He understands that you like the brand; you wouldn’t be here if you didn’t. He sees that navy suits are clearly your main interest. He notices that you have some reservations  though. Something is holding you back from taking the next step. He approaches you….”would you like to try on this suit sir….”46 Bridging the Gap: Advertising, Conversion Optimization and Marketing Automation
  • 45. 15 minutes later you have tried on three suits A  conversion optimization  solution is  similarand purchased one. to  an  online sales assistant.  By  monitoring a website visitor’s behavior in real-time,Now, if the sales assistant had  approached an  individual  interest profile is built. Whenyou as soon as you entered the shop, it would the technology recognizes that the site visitorhave been irritating. You didn’t even know what has reached the purchase tipping point, anyou  wanted  at that point. You  hadn’t  been interaction is triggered on screen to assist theconvinced by the brand;  you  needed  time consumer  in  converting.  The value of thisto browse.  Had he waited  much longer to online sales assistant? Clients using theapproach, you would have walked out and not solution regularly see an increase of over 30%made the purchase. He noticed that you had a in website conversions. A sales assistant whoreal interest in navy suits but also picked up on ignores the consumer’s buying signals in storethe fact that you had some reservations. He would ultimately be a failure, yet the majoritystepped in to overcome these uncertainties of marketers are happy for their websites toand made the sale. As a result of his relevant operate in this passive way.and timely approach,  you are delighted withboth your purchase and the  experience you If you had a retail store, how would you wanthad within the shop. your sales assistants to work? Your website should be no different. 47
  • 46. 6Optimization:Get More,Do More,Learn More 49
  • 47. Optimization: Get More, Do More, Learn More Eric Carlyle, Chief Knowledge Architect | IgnitionOne T he goals for a marketing organization publishing two ads instead of four, is it possible should always be set in three phases: to buy a retargeted display ad cheaper than a get more, do more and learn more. homepage takeover? The third is aligning the The first step to reach success is to message in the channel with the message on get more out of the current situation before the website to drive conversion increase and spending more money. To do this there must be streamline the conversion funnel. a reduction in waste. In setting goals, marketers should deem waste Waste in this case is spending more money on reduction their mantra. It’s like an eco-friendly prospects than is needed to persuade them to digital marketing team. The team should be buy. There are a few ways to do this. The first is given a timeframe and a method to run tests to simply reduce the number of exposures and and make the first priority a reduction in wasted amount of media spent to see how the results spend in order to increase efficiency. are affected. For example, if someone sees four ads and they buy, but would have bought after The secondary goal of growth should be the seeing just two, then you wasted two ads. It is focus only after the overlap is eliminated and important to understand how much overlap the improved ratio can be maintained as the there is and whether it can be reduced with investment grows. The last and most critical the same end result. The second way to reduce goal is based on responsiveness to move waste is to spend less on ads. In addition to budgets in response to change. Fluidity is50 Optimization: Get More, Do More, Learn More
  • 48. vital for integrated marketing success. This Reduce waste: Bigger budgets are nothingmeans that marketers have to eliminate pride to be proud of; reduction and eliminationand turf wars around budget size. Bigger is of wasted media should win the highestnot always better by any means in this case. accolade on the team.Team members should be awarded for finding Reward the best role for media: There is oneopportunities to give their budget to others. exposure that will end up converting theIt’s a reversal in traditional thought of greater visitor. If all the different types of media trysuccess equals more budget. For integrated to score their attempts may block each othermarketing success, the more budget that can from getting the goal. Focus on the mostbe reallocated to a central pot to be used as likely converting combinations of media andbest suited in other channels shows a reduction strive to increase its waste and inefficiency. Through incentives, Recycle ideas of messaging: The customer’smarketing leaders can get their teams excited position in the conversion funnel willto change their mentality. And in many cases determine how strong the call to action is,it may be necessary to eliminate channel but the creative, tone and voice need to beowners all together to drive this change. Here consistent to build the brand. Integratedare three best practices in aligning a marketing markets include both data and art. Rewardorganization: consistency in advertising that is appropriate for the position in the purchase funnel. Reduce Waste Reward the Best Role Consistent Messaging 51
  • 49. How We Got Here: Some people think that brand marketers are held less accountable than direct response Offline, Online, Brand marketers. This shouldn’t be the case. All and Direct Response efforts, whether direct or indirect, should result In addition to structure and incentives for in the financial success of the company. Unless integrated digital marketing, other distinctions there is a special project mandated from the in the marketing group pose unique questions. CEO to be 100% altruistic in nature, such as an The first one is brand vs. direct response anonymous donation, then everything in sales marketing. and marketing works toward revenue. With this in mind, the question of waste can only The traditional idea is that two teams can work be determined for brand marketing when you together with different goals. Brand marketers can measure and gauge the impact it’s having. are more concerned with getting the message After every TV commercial (often categorized in front of the most people (awareness goals) as brand marketing), there is a surge in online and making a certain type of impression activity. IgnitionOne has run tests on the (sentiment). In some cases, they are held value of a display view by exposing people to accountable to actions measurable, similar to two different ads, one related and the other direct response (such as video plays). But it’s unrelated to their brand and seeing how rare that they are responsible for the end sale. this affects purchase behavior. The results The core of reducing waste still applies here. indicated clear links: offline and brand can be It’s merely a question of how you identify the measured and this is the only way to reduce waste. A marketer can run less and alternate waste across everything. sequences of media to see if the total number of “conversions” is consistently affected or not. When it comes to brand marketing, the concept of waste is more difficult to quantify, and it must be done in the context of your overall conversion goals.52 Optimization: Get More, Do More, Learn More
  • 50. Optimization: Where to Begin At its core, optimization is the “blocking and tackling” of your marketing campaign and is theOnce a marketer has established their goals, raw manipulation of the levers provided by yourdetermined their targeting, created their media assets, and implemented theirmeasurement and attribution profile, the The line separating good and poor optimizationprocess of optimization can begin. Let’s start processes is most often delineated by twowith a simple definition: factors: 1) how effective the process is to finding and extracting value from a set ofOptimization is the tactical process of matching assets (is the campaign performing the bestthe returns of a marketer’s assets to the cost of it can be?) and 2) how much time and effortthose assets so as to achieve the stated goals. does it take to maintain the process (how complicated is the system?).This definition is important because it highlightstwo vital roles that optimization plays withinthe overall campaign:➊ Optimization brings goals to reality. Obvious to all practitioners is the fact that at the end of the day, no matter how fantastic your strategy, creative and targeting efforts have been, if you have not paid the correct amount for your exposures you will not reach your goals.➋ Optimization is tactical. Despite the tens of millions of dollars invested by ad tech companies in developing their sophisticated systems and the thousands of media analysts and managers dedicated to optimization, it is fundamentally a routine process. Match your returns to your costs, rinse and repeat. 53
  • 51. Optimizing in Silos Tearing Down the Silos Unfortunately, within siloed (or non-integrated) Integrated marketing campaigns, though, are campaigns, the tactical process of optimization much less fraught with these deficiencies. Within can be deteriorated across both of these an integrated marketing campaign, optimization factors. Muddled or conflicting goals, poor can be effectively simplified and easily measurement and attribution, channel ‘tunnel’ coordinated by focusing on Marginal Return vision can result in inefficient optimizations Analysis. Marginal Return Analysis is the process which sub optimally allocate dollars between of identifying the benefits and costs of different and within media channels. Likewise, the alternatives by examining the incremental effect process of optimization can become time on total revenue and total cost caused by a very consuming, prone to channel “turf wars” and small (just one unit) change in the output or input frustrating; ultimately robbing marketers of the of each alternative. Marginal Return Analysis bandwidth for more strategic and high-value supports decision-making based on marginal or initiatives. incremental changes to resources instead of one based on totals or averages. Marginal Return Instead, as is often the case, optimizations Analysis seeks to answer two basic questions: within and between marketing channels often become heuristically determined. “Hey Sally ➊ What was the marginal return of the last unit of cost spent? Search, your search budget this month is $1m and I want a ROI of 10:1 and traffic of 5 million ➋ Where should one invest the next unit of clicks.” “Hey Debra Display, your remarketing marginal spend that will lead to the highest budget this month is $400k and I want a CPA marginal return? of $4 and 45 million impressions.” The lack of Asking these two simple questions, optimization common goals and measurement means that can be performed against any media channel these directives are disjointed across channels and even between channels. and often conflicting.54 Optimization: Get More, Do More, Learn More
  • 52. An example is helpful here: of each actions is smaller; thereby resulting inImagine two keywords in a search campaign. $60 in spend and 30 actions or the same $2 CPA but with 20% more actions.Assuming that the keywords are currently atrank 2, standard asset equalization (keyword Within the context of an integrated marketinglevel rule) would attempt to move keyword 1 to campaign across multiple channels, the range ofrank 1 to ensure that both keywords have the decisions now mixes across channels, resultingsame return; thereby resulting in $50 in spend in dollars being allocated dynamically acrossand 25 actions with a CPA of $2. Marginal media channels based on where the next bestanalysis would indicate that one should instead dollar to spend is.move keyword 2 to rank 1 as the marginal cost Rank 2 Rank 1 Cost Actions CPA Cost Actions CPA MC/MRKeyword 1 10 10 1 30 15 2 4Keyword 2 20 10 2 50 20 2.5 3 A Working Example A requisite of this marginal analysis is the need for your optimization process to developAn example of the optimization process is in predictions around how assets will respond tomonthly channel budget allocation (a process changes. These predictions form the basis ofthat is dreaded by most marketers). Within a marketer’s decision set. These predictionsan integrated campaign, this process becomes leverage historical data and technology tomuch simpler and scientific. measure the elasticity changes in assets such 55
  • 53. as bids, times of days, frequency caps and the and systems that can be automated. Obviously, other levers available within digital marketing the best scenario is to have an optimization channels. It is important that this modeling technology that brings the pieces together and takes into account a number of intricacies of harnesses both the predictive component and digital marketing channels including: the automation component. ➊ Cross-correlation effects. Moving the bid For conversion optimization, this principle is valid on one digital asset may affect the delivery as well. The ROI of every additional unit spent will of another digital asset. decline as more money is spent. But there is an ➋ Constrained supply. For most digital assets additional effect: an increase in conversion rate there is an ultimate cap on the number of will bring the CPA of media down as well, which exposures that can be delivered even if the perhaps, in turn, makes it viable again to raise price escalates to extreme levels; you can’t media spend. always buy more. The point is not to prefer conversion optimization ➌ Declining marginal productivity. For many above trafficking, but to take a holistic view types of digital assets, as you increase as a marketer. Putting media and conversion the delivery, each new exposure has the optimization in silos will lead to a sub-optimal potential to be marginally less effective at allocation of marketing budget. To start with, producing return while at the same time there should be one budget, one responsibility being marginally more expensive. and one integrated technology. Each company With millions and millions of assets in the will discover which starting point works best, typical integrated marketing campaign, the whether it is on the media side or conversion side. creation of these decision sets is often handled by technology and specialized systems. With potentially hundreds of thousands of decisions daily responding to changes in cost or return structures, the application and responses to new data (competitor changes, new products, promotions) is also best handled by technology56 Optimization: Get More, Do More, Learn More
  • 54. 7The Future ofIntegrated Marketing 57
  • 55. The Future of Integrated Marketing Chris Knoch, VP Strategic Solutions | IgnitionOne History Repeating O ur shared history has many on the road in the process. This new method examples of the type of sea- reduced production time while requiring less change we are facing now- where manpower. complexity rises to an apex and then gives way to innovation and simplicity. The assembly line made the car more efficient to An excellent example of this is Ford and his produce and therefore cheaper, and paved the assembly line. way for new opportunities – just as streamlined technology will open doors for marketers. Before Ford, parts were assembled piecemeal and then cars were constructed over time. The assembly line streamlined the process of Making History building a car so that they could be built faster and more efficiently. This not only changed how The digital marketing technology industry cars were made, but also opened the door to faces a similar turning point. We are seeing new possibilities. By reducing complexity, cars an increasing number of marketers turn were made available to the masses, changing away from disparate pieces of technology the shape and fabric of our country, bringing us that don’t allow the marketer or agency to into a new age, and putting 15 million Model T’s streamline the creation, distribution and58 The Future of Integrated Marketing
  • 56. measurement of digital media. They are The Age of Customer Dialoguealready experiencing the potential to besmarter by integrating the pieces. But where is this taking us? What is the unseen, as of yet, benefit of consolidating digitalMarketers often don’t have time to think about marketing solutions, and more importantly,the possibilities of having all of their data leveraging “big data” in real time across theseworking together because they’re too busy solutions?making all the pieces work at all. They are inthe same place as consumers who didn’t even This question has to be answered in looking atknow that getting from one place to another in how people experience and consume mediaan hour and not a day was even a possibility. today, how that may change in the future andBut not all marketers. what implications that might have on the ideasToday, many marketers already buy into the and tactics behind integrated marketing.theories and principles behind integrating their The ideas behind direct marketing fifty yearsmarketing. Innovation and investment show that ago were one of the last major shifts in thepeople are placing bets on the consolidation fundamentals of marketing. Our industry isof tools and teams resulting in the breaking in the midst of its second shift – involving thedown of silos and the removal of intermediaries disintermediation of media through one-to-onebetween the customer and advertiser. marketing capabilities. This is especially (butWe are positive that as more companies see the not limited to) what we have seen in the adventbenefits of integrated marketing even more will of social as a marketing channel.follow. Over the next couple of years, we will seethis momentum surge from early adopter status Social has thrown out the old marketing modelto status quo. Point solutions will always have of talking at customers, and has enabled atheir place in helping to push innovation forward, two-way conversation with consumers. This isbut over the last few years, signals from the titans a new standard in marketing. Consumers, andof software solutions point to consolidation especially social natives, will inevitably come topicking up steam. There’s no reason to believe it demand this new standard of communicationwon’t continue gaining momentum. with brands. 59
  • 57. As the rise of social reach and influence takes But the foundation of that idea must be proof hold, the industry will see the fusion of brand positive. Due to the social dialogue, consumers and direct response goals. Awareness and are increasingly a part of building the brand dialogue created via high quality, memorable attributes rather than being told or shown. content are increasingly important as people With the rise of user-generated content and have the opportunity to become brand access to devices and geo-specific forums, ambassadors via socially enabled media. There marketing is becoming hyper-local. Localized will be no more lazy advertising that talks at content means finding new ways to hold the consumer. The most successful brands to the core principles of your brand while will create content that not only stimulates a accommodating the desires of localization. It conversation between brand and consumer, but is integrated marketing’s responsibility to take also between consumers about the brand. the broadcast and tailor the message within many different mediums. The future shifts the importance and emphasis away from the Local & Mobile broadcast and onto the increasingly smaller No one can know exactly how these things will audience. This shift comes with the expectation evolve, but there are larger implications to the and responsibility of consumers becoming brand relationship between advertisers and media ambassadors. The content and messaging that owners as well as consumers. As data and access ambassadors create is localized and distributed to it via mobile devices has become ubiquitous, across an array of mobile device types. Although purchase decisions are less based on the creative many comment on the rise of social and the shift brand building of the past. Increasing emphasis of power from brands to consumers, few have is being placed on peer-to-peer consumer talked about what the implications are for media reviews as well as price comparison data. planning as we know it. Building brands will not become less important, In fact, let’s get out of theory and speak of actual but more emphasis will be placed on building future examples. that brand in a measurable way. As consumers gain access to price comparison data in-store, understanding what that brand represents is vital.60 The Future of Integrated Marketing
  • 58. How This All Comes Together price online and get it via free shipping without paying taxes. Why on earth would I purchase atI am shopping for a television. I do some research an old bricks and mortar store today?on my own via both professional reviews andreviews listed by actual users of the televisions But it’s been a while and the retailer surpriseson both third party AV forums and online me. This particular retailer has changedretailer sites. I have honed in on a few options, drastically since I last visited. The store is cleanbut I still open it up to a quick discussion with and uncluttered and incredibly welcoming.friends on my Facebook wall. They ask me what I need and direct me to the TV department. I’m met there by a woman thatAll that done, I think I know which TV I want to greets me with a smile, and asks me which TV Ibuy, but I need to see it in person. was looking at online.So, I search on my phone for the closest How did she know I was already looking online?consumer electronics story near me in order to Well, aside from me bringing up the TV on mytake a look. This, as many in retail already know, mobile device, this is a human connection pointis called “showrooming”. But I do visit their site I have not had up until this point. I completelyto ensure that they have my desired product. forgot what this was like after all those hundredsNot only do I see the TV, I also note that TV is of online purchases. She then reminds me thatindeed more expensive than a different online- if I download the store application, they’ll offeronly retailer from which I regularly purchase. me a $50 gift card at the store. I don’t hesitate.But I do see a special offer to download theirsocially enabled mobile app to get a $50 giftcard. $50 may sound like a lot of money, butthrough a series of third party data aggregatorsthis retailer is already profiling me on my firstvisit, and knows I’m in their target demographicwith disposable income. It’s a real-time offer.I walk in with almost no intention to buy itthere because I’m conditioned to find the best 61
  • 59. $50 off right now The sales representative is sent an alert on her here $50RIGHT NOW $50 OFF right here mobile device, and she walks over to personally offer it to me. She also enthusiastically tells me about the benefits of choosing this brand down RIGHT HERE the street from me. The face-to-face human now here connection, the real-time discount offer, and the funny commercial I saw on TV by this brand right here $50 right now over the holiday all culminate in buying the TV then and there. now right here Not only that, but I have the store’s app on my phone and a future propensity to purchase from them again. With the data they collect on me in exchange for the $50 gift card, the retailer can I download the app, first connecting via leverage their integrated Digital Marketing Suite Facebook Connect, and it asks me which TV to keep their brand in my purchase cycle for all I’m looking at. This retailer’s app does its own future buying. Whenever I interact with their online price comparison search. It also collects website, app, or check-in at their store they are the social and third party data available on me tracking my propensity to purchase again, and in milliseconds and knows I’m definitely in the are tailoring offers to and dialogues with me. market and I’m potentially a repeat customer with some disposable income. Could this retailer compete with all these Big Data Delivers sites on price alone across all consumers? No. Tracking all of these interactions and leveraging However, by quickly collecting data on my them in real time is a BIG challenge. That’s online behavior and profile, it knows I’m the sort a good thing, because it’s actually the best of customer that they want. By using additional scenario of big data used in marketing: using customer profiling analysis, they know that I am data in real time to know when to communicate worth an aggressive discount. with a consumer with the right message at the right time – as personally as possible.62 The Future of Integrated Marketing
  • 60. Marketers Get to Next Steps Be Creative Again Do all these multi-channel solutions exist todayThe irony in all of this is that once we overcome the in one integrated platform? No. But are theretechnology challenges, like all good technology, any integrated Digital Marketing Suites thatit should move considerably (but not completely) understand this challenge, and are seekinginto the background via simplicity. Then, we to further integrate even more creative pointshould see a doubling down on the creative solutions into their platform? Yes. Digitalelements of marketing, especially creativity marketers and partners must see the inevitablethat stimulates positive dialogue. Creativity will move towards digital marketing integration.garner attention, and one-to-one interaction will They must acknowledge the DMS Imperativebind us tightly to our most favored brands. and find partners that fit this new way of doing business. They must also find partners that takeWhere the influence that people have as brand the time to understand the brands’ own uniqueambassadors is valuable, the best and most way of doing business. Marketers must now takecost effective way to inspire them will be with the next steps into the future of our business.remarkable creative experiences. This meansmore focus on media that allows consumers tointeract so that they feel ownership and can thenpromote within their social circles. Personalizedsearch, social and local review services will likelystart to adopt auction models and metrics thatin some way acknowledge or compensate theunique qualities of each consumer, making thiscustomization time-sensitive and more relevant.The more focus on developing one-on-onerelationships and providing these experiencesdirectly, the more likely a marketer can avoidwholly depending on broad sweeping messageand ill-informed auctions-based media. 63
  • 61. 8Discussions onIntegrated Marketing 65
  • 62. QA Discussions on Integrated Marketing Julie Cary Chief Marketing Officer, La Quinta Inns & Suites La Quinta Inns & Suites has over 800 hotels in the US, Canada and Mexico and is in the limited-service segment. IO: Tell us a little bit about your role at all of the marketing efforts together for a better La Quinta. outcome is critical and to understand how they JC: I have the responsibility of all marketing interact with each other to drive more revenue functions within the organization, so everything is also very, very important. One of the ways from brand marketing to e-commerce to that we moved in that direction was putting all loyalty marketing, analytics, PR, social media, of the media with one person — so our director partnerships, and so on. of media handles both offline and online media. I think that was a really important step to look IO: How would you define integrated at the integration of all the things we are doing. marketing? JC: One of the things we look at is our holistic media plan that is online and offline and how they work together, because they do. Integrating66 Discussions on Integrated Marketing
  • 63. IO: So you changed the structure of your revenue at the best price, then you don’t win.organization. Can you discuss how the Making sure the goals are lined up is one of thestructure works and how it supports most important things.integrated marketing? La Quinta has the same revenue goals acrossJC: The position of Director of Media works with the whole team. We have individual goals bythe folks at IgnitionOne, but she also does all of functional area but they all ladder up to thethe media planning and works with the agency number one goal and what we are trying toon media buying for broadcast, radio, anything accomplish.that is not online. She also works very closelywith the marketing mix modeling that we do to Unifying these goals was critical given the mediaunderstand ROI, so she can see the influence of interaction was even greater than we thought.broadcast on search. She can see the influence Quantifying some of the work we did with ourwhen we have certain levels of impressions both mix modeling was also a learning process for and offline and what the results are for We looked at the effect of broadcast on search,overall conversion to bookings during a certain the effect of banners on search and then wetime window. The holistic view is important looked at the overall effect on paid search.for us to make sure that we were spending That interrelationship is big and very importantour money as efficiently as possible and really to driving revenue.understanding how it all works together. IO: How do you manage this tidal wave ofIO: What are the challenges for organizations data that comes at you every day?in achieving integrated marketing? JC: It is a lot, and I think that because we are inJC: Everybody must be aligned with the same hospitality, we get more information than mostgoal, which is something we do. If people industries about our customers – we get theirdon’t have common goals, sometimes they name, address, phone number and sometimesunintentionally work against one another. So their email so we really have big data. We haveif you are trying to drive acquisitions, and you lots of different data points that we pull togetherwant all the money for acquisition and your from the online experiences to the databaseultimate goal is not the most incremental that we have about guest stay behavior. The 67
  • 64. “ La Quinta has the same revenue goals across IO: How does technology factor into all of this the whole team. We have individual goals by for you? functional area but they all ladder up to the number one goal and what we are trying to JC: Technology isn’t where it needs to be yet accomplish.” in terms of cookies and tracking. Having that tracking technology that can differentiate between the customer we want vs. the one we amount of data can be very overwhelming. don’t will be critical to the evolution of current But we make data a part of everything we do, technology. Spending less on impressions to get which is most important. We have invested the right person is how the technology is going pretty significantly in tools, from reporting to to have to evolve in the cookie/ tracking space. analytics. And people in the roles have to have Database systems that simplify holding data that acumen as well, so they understand the have helped. The reporting tools are evolving and whole process. We continue to grow and learn growing and have made accessing data easier. how to apply the tools to all we are doing. The ability to retarget and the role technology Most recently, we have begun taking our data has played in that has been great. to a new level by continuing to peel the layers IO: You’ve done quite a bit in integrated of the onion. We have a digital performance marketing. Are you satisfied with the level of marketing initiative – banners and search. We integration you have achieved at this point? charge our hotels a fee if they get a booking Are you planning moving beyond? from one of those channels. Now, we are looking at those customers and asking if they JC: We are never satisfied: we are all always are new or repeat, and the frequency of their trying to find a better, cheaper, faster way to stays, so can we pay less on repeat and more do something. We will continue to do that and on acquisition. We want to understand how we we will continue to use the next layer of the can shift our media strategy to get more of the data onion to better understand our marketing customers we need at the time without losing activities including what customers we are the loyal guest. getting and at what price. We will continue to evolve to get more incremental revenue at the lowest cost that we can.68 Discussions on Integrated Marketing
  • 65. IO: How is the travel vertical different from IO: How do you balance direct response withother verticals in terms of marketing? brand goals?JC: For us, it makes online marketing a little JC: It’s easy to focus on ROI, which is criticallybit easier because we get so much data about important, but, brand building is tougher toour customer, and our database can be such measure in terms of immediate impact – itan important insight tool. When I worked in takes longer. We have done online studies topackaged goods, we knew where the product look at the perception changing ability of somewas sold – we could get scanner data – but we of the online advertising and it has been reallydidn’t know directly who was buying: where helpful for us to look at those things and brandthey lived, their zip code, whether they had engagement as well. Brand engagement isbought the same product before. The level of important but it is relegated to the number twoinformation that we have about our customers spot behind direct the travel vertical is significantly greater than IO: How do you figure out that balance?a lot of other industries. That gives us moredata to help us understand our activities and JC: If you have good messaging then you areour results. still building the brand while driving ROI. We know there are tactics where the ROI is so lowIO: What advice would you give to marketers we just won’t do it at all even if we know it wouldlooking to improve their online efforts? be a nice place for the brand to be. You have toJC: Try to be able to measure lots of things and balance metrics or set a goal. If you know thisdetermine what’s really important. Sometimes is an opportunity to reach your customer, takeyou don’t know what’s important until you it with the right messaging and the willingnessmeasure a bunch of things to figure out what to accept a lower ROI.that might be. Always have a test and learnenvironment and never be afraid to try newthings to see if they can work for you. 69
  • 66. IO: What do you see in the future for integrative marketing in terms of innovations, changes in the industry’s landscape? JC: I envision an evolution of using data to better personalize the media and the experience for the customer so that the interaction with the brand is on a one-to-one basis. Most people come to our website to view our hotels and a lot of them book there, but not all of them. Some of them call the hotel and some of them drive to the hotel and book. Understanding the experience and giving them the best personalized experience to help convert them based upon what you know about them through data is where I see the future evolving to in marketing. I also see an evolution of the skills we are going to need as marketers. We have functional experts, yet because there is so much combining of what used to be called direct marketing to online marketing to broadcast and messaging, I see roles converging more. Figuring out what those skills need to be to manage big data, drive insights and form the marketing efforts will make for an interesting evolution in marketing.70 Discussions on Integrated Marketing
  • 67. QA Discussions on Integrated MarketingPeter McDonoughChief Marketing and Innovation Officer, DiageoDiageo is the world’s leading premium drinks business with brands that include Johnnie Walker,Crown Royal, J&B, Windsor, Buchanan’s and Bushmills whiskies, Smirnoff, Ciroc and Ketel Onevodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.IO: Tell us a little bit about your role at Diageo. where our innovation work streams are focused in support of the brand strategy as opposedPM: My title is Chief Marketing and Innovation to being viewed as opportunistic ways ofOfficer for Diageo North America. I oversee capturing more consumers.brand management as well as new productdevelopment for the region. Originally we had IO: How would you define Integrated Digitala chief marketing officer and an independent Marketing?chief innovating officer, which was my prior role, PM: For the last couple years, we’ve evolved ourand we made the decision to combine both of overall approach to marketing. For us, it’s notthe roles. This was largely to create stronger about designing programs for specific channelslinkage between the role that new product and figuring out how to integrate them intodevelopment was playing in brand strategy. the digital space. It’s about what is the mostThere is a much more integrated approach now effective path for marketing in a digital age. We 71
  • 68. live in an era where consumers have more power online advertising has a role, but it is no longer than ever before. Social media, in particular, the primary driver of creating the consumer can build, or in some cases, diminish a brand, engagement or of communicating the brand’s so we develop programs that connect with story. The challenge is breaking away from consumers in meaningful ways and give them the mindset that says, “Let’s first develop a the ability to engage and ultimately share. We television campaign and then we’ll figure out refer to this concept as Participative Marketing, how to support it.” That’s the model from 25 or knowing that participation drives engagement 15 years ago – but in today’s age it’s really more and advocacy, which are paramount to building about thinking about what is the message and and sustaining our brands. the story you want to tell and then say, “How does this come to life in a social media footprint IO: What are the challenges for organizations or in a video format, which can be placed on to integrate their marketing? television, YouTube or spread virally?” It’s PM: It all starts with having the right insights stepping back and approaching the work and getting collective alignment upfront. If differently, which is, for some people, a bit of a we get the insights right, the planning and challenge. And for some agency relationships, development process can and should be a it’s a bit of a challenge because their business highly collaborative and fluid exercise. But model still hasn’t fully evolved to move away there is some old baggage about industry from their primary revenue source: television practices. As brands think about their next production. communication or participation platform, it IO: How do you make those different channels often begins with the thought of, “What is the work more closely together rather than as a next advertising campaign?” In the traditional waterfall from television? model, a brand would have an agency of record which tended to be an advertising agency that PM: That gets into teaching the brand teams was focused on developing television creative right up front to stay focused on first articulating to bring the communication to life. In today’s the idea that you want to communicate, and model, I believe that television has a role just then creating a participation platform. If you like out of home or radio or Facebook page or think of a large circle, and in the center, a bull’s72 Discussions on Integrated Marketing
  • 69. eye is the idea itself and then you can break depends on the message and the story you areup segments of the circle that surrounds it trying to tell behind the brand. The role of theand say, “This is how the idea comes to life in different mediums will be driven by the bestvarious mediums or activities or experiential way to bring the idea to life.programs,” and it forces them to think from IO: How do you use digital marketing?the beginning how to bring the idea to life asopposed to how to transfer the idea from TV to PM: I use it the same way I would use out-of-additional mediums. And that’s where the real home or radio or television or print in the sensepowerful engagement platform is focused on that I think that digital is simply another waytrying to create consumer engagement, so it’s to engage consumers. But it happens to bean engagement platform. one of the more robust ways versus the other mediums that I mentioned which are more one-IO: Would you consider this to be a way communication mediums whereas digital,unified goal that each of the channels are and more specifically, social media, allowsparticipating towards? the chance to have dialogue. The other thingPM: It’s a unified understanding for everyone about digital is that it allows you to becomethat works for me. What I’m not trying to do more refined in your targeting. A banner ad isis make sure that you have equal participation essentially no more effective in my mind thanof every channel. What I’m trying to do is say an out-of-home or a transit board, except forthink about the idea and then think about what the fact that you can be much more targeted inis the best way to bring it to life. Because there terms of who you try to create the impressionare some programs that don’t require TV at all. with. That is more difficult with the out-of-There are some that can be brought to life virally home or a transit board. The static nature ofthrough a presence focused on social media. the message isn’t a whole lot different, but theThere are others, depending on the nature of ability to be more refined in your target certainlythe story that you want to tell, are best brought is. Importantly, the social media piece is whereto life starting with an emphasis on very rapid it really gets powerful because that’s where youbroad-based reach through television and then can engage in a dialogue as opposed to a one-the other channels will be secondary. It really way channel. 73
  • 70. I don’t think of digital, per se, I think of were tweeting to their followers. We also set different aspects using digital technology to up a Facebook page for the entity itself, and communicate the message. Sometimes it’s via tied in the Facebook pages of the various DJs one-way broadcast, sometimes it’s engaging in who were competing in the contest. It was a a conversation. fully integrated program that went across all channels. This is the best example I can think of IO: Have you had much success in taking where we have taken an idea and then brought integrating different digital marketing tactics? it to life. We basically created touchpoints in PM: Smirnoff had a very holistic approach to every medium that was relevant based on our bringing the idea of Master of the Mix to life. consumer target. Master of the Mix was all about trying to make IO: How did you measure success for that Smirnoff more relevant in nightlife, specifically campaign? urban nightlife targeting African American consumers. So what they did was consider PM: We have brand tracking studies and we who the key influencer was in that context: the track on a quarterly basis how consumers DJ; they guy who sets the music and creates respond to our questions. We would look back the theme of the party. So we created a reality over a certain time period and then break into television program as a way to bring the segments. And you could see the change of program to life and inserted Smirnoff into the the consumer perception of the brand’s image brand program itself. As the DJ is the hero of through that kind of brand tracking study. There the story, we were in nightlife locations where is a list of about ten questions on the study drinks were being served so we had bartenders that center on how the consumer feels or the interacting with DJs and talking about the frequency by which they are drinking the brand drinks they were making. In conjunction with or their comfort for being an advocate for the that, we set up a digital radio station where brand and recommending it to friends. We also consumers could go online and download the track market share while we deploy these kinds music tracks that the DJs were playing. This of programs. What are we seeing in terms of created followership through the various DJs offtake in a retail environment — are we selling that were contestants on the show and who more product? Is that associated with the time74 Discussions on Integrated Marketing
  • 71. period in which these ideas were coming alive? purchase. Advocacy and engagement doesn’tAnd then we track it through conversations with do me a whole lot if I’m not getting sales out ofour distributors and with our retail partners. it. I’m having this conversation pretty regularlyWhat are they hearing and how do they sense with brand teams that are all excited aboutthe brand is moving within their retail aisles. growing their Facebook page from 200,000There is a variety of metrics that we would put fans to 1 million and I say, “That’s great. Talk toin place related to audit data, tracking, sales me about what your sales have done in thatand market share performance. But importantly associated period and if you’re sales aren’tis the brand tracking study that has a quarterly increasing then explain to me why you’re sopulse for us in how consumers view the brand. excited about these fans that we’re gathering.” There has to be a linkage here that we can track.However, we’re still working on the variousmetrics to understand which one was more IO: Do you think that in the near future thereinfluential than another in terms of shaping will be a technology in metrics that will allowperception. We’ll ask a question about you to understand this better?advertising awareness and then ask, “Where PM: I think there are an awful lot of peopledo you see messages from the brand?” I would trying to prove that. It’s not a new wrong to say that we have a sophisticated Every advertising medium that has come outanalysis set up to assert that the performance over the last 100 years has been trying tois led more by what we did through Facebook create that correlation and we have engagedversus what we might have done through in studies where we have done exposuressearch versus what we might have done through through Facebook with Nielson to understanddisplay versus TV etc. how the home panel cells react differentlyThat said, we certainly have the ability to track that had exposure through a brand marketingthe responsiveness online better than any other campaign using Facebook versus the homeplace. What I am still trying to figure out is how panel cell that had no Facebook exposure andto go back and track it to a sale. Because at the is there something different about the marketend of the day it starts with creating consumer basket purchases in one cell versus the other.engagement but the real mission is consumer We are working to try to do that. I’m sure that 75
  • 72. “ Marketers need to stop thinking about Consumer Planning, Portfolio Strategy and PR. advertising in terms of channels. That only When it comes to developing campaigns our emphasizes limitations. Consumers don’t Planning and Brand teams work together to operate in silos. There is no offline vs. online. design those programs. To help influence and Everything we create can end up anywhere. Think about your objectives, make sure guide the process we have capability experts you have the right insights, ground your that apply broader viewpoints such as our campaigns in a solid idea and then figure PR, Multicultural and Digital strategy teams. out the best communication vehicles. Once Through these broader planning sessions the you’ve mapped that out, make sure you have teams collaborate and share data and insights the right support in place. Make sure you to align our goals and determine the best have the social platforms needed to amplify your message and drive advocacy.” approach. We also bring our media team and partners into the fold early on so that we can you know folks at Facebook and Google are develop the right programs for the appropriate trying to set up that correlation. Today, to my communication vehicles. knowledge, no one has had a conclusive study IO: How do you balance multiple goals – such that proves it, though I know there are sound as brand and direct response goals or online bites out there and discussions that fans are vs. offline goals? twice more likely to participate in a category than non-fans are. We know from our Facebook PM: Whenever a campaign or program tries study, there was a small cell exposure that we to tackle too much it can often fall apart. We had double digit lift in terms of a market basket believe the best marketing approach is when side but it was a small cell test so we are now we have a clear goal to address. We don’t have trying to replicate it on a larger scale to see if specific offline vs. online goals. We develop our we can in fact replicate those results. programs and campaigns around an idea and then determine if that idea is the right approach IO: How is your marketing organization for achieving our goals. If not, we slowly pull the structured? How do the teams work together idea apart and rebuild it so it answers our need. towards combined goals? Based on what that idea is we then determine PM: We have five teams that sit within the where and how we to best communicate it. marketing organization: Innovation, Brand,76 Discussions on Integrated Marketing
  • 73. IO: How do you manage the enormous emphasizes limitations. Consumers don’tamount of data that is generated every day? operate in silos. There is no offline vs. online. Everything we create can end up anywhere.PM: We are very specific in how we handle Think about your objectives, make sure youconsumer and market data. Primary research have the right insights, ground your campaignsdata is obviously used to help generate insights. in a solid idea and then figure out the bestBroader consumer data regarding industry, communication vehicles. Once you’ve mappedcategory, brand and/or program sentiment, that out, make sure you have the right support inamong other things, is captured according place. Make sure you have the social platformsto our compliance policies, ensuring we only needed to amplify your message and drivereview information from those of legal drinking advocacy.age. Without bias or judgment, our plannerssort through the data until we find the story; IO: You have said “Consumers no longernot the marketing story, the insights story. differentiate between phones, tablets,They search for what are the key findings that computers or even television and thewill help us answer a consumer need or a brand winning brands will be those that succeed inproblem? integrating their message in relevant content across all media.” How do you imagine brandsIO: How has integrated marketing benefited doing this well?your brand? PM: By being grounded in core insights andPM: Our brands are social by design. This telling the right story. We use different vehiclesdynamic alone challenges us to always think to deliver different aspects of the story, but inabout where the conversations are taking place. the end, it’s the same story. It has to all hangWe want our consumers to participate and together. We can never lose sight of that.therefore we need to ensure that our marketingefforts are present in the right areas and canhelp drive the conversation.Marketers need to stop thinking aboutadvertising in terms of channels. That only 77
  • 74. Glossary of Terms Glossary Terms Definition 1st Party Data Data that is created or owned by the marketer. 3rd Party Data Data acquired by data aggregators, other than the marketer. Sources consist of publishers, retailers, e-commerce sites, and offline data providers. Attribution Understanding which channels or tactics deserve credit or partial credit for a conversion or brand engagement increase. Attribution allows marketers to gain the full ability to correctly allocate their budget to the channel-schema that works most efficiently for their objectives. Big Data When the collection of data sets are so large that they become difficult to process or manage. The challenge is to be actionable in real-time, which can allow the marketer to communicate with a consumer using the right messaging at the right time. Centralized Reporting Reporting on media from one source rather than gathering attribution data from multiple sources and attempting to make sense of it all in silos. Cross-Channel Allows marketers to take into account interactions among channels, Attribution providing the ability to allocate partial credit across a range of exposures, enabling the understanding of how certain channels or campaigns correlate and feed the funnel. Digital Marketing Suite A centralized solution that allows the marketer to manage multiple channels, run cross-channel attribution, and view all marketing analytics in a single place. A DMS can include other features such as on-site optimization and even proprietary RTB systems. A Digital Marketing Suite allows you to integrate your marketing mix, allowing for seamless management, optimization and reporting on media.78 Glossary of Terms
  • 75. Glossary Terms DefinitionDMS Imperative The need for innovative marketers to consolidate their online marketing budgets within a Digital Marketing Suite in order to compete in today’s marketplace.Integrated Marketing Aligns resources, goals, technology, data and measurement in order to achieve higher levels of efficiency and performance.Localization/Local A refined way to target consumers based on their location.AdvertisingMarginal Return The process of identifying the benefits and costs of different alternativesAnalysis by examining the incremental effect on total revenue and total cost caused by a very small (just one unit) change in the input of each alternative.Optimization The tactical process of matching the returns of a marketer’s assets to the cost of those assets so as to achieve the stated goals.Purchase Funnel A useful concept to gauge where a consumer is on their path to making a decision or conversion.Same Point-Solution A standalone system that can import marketing data across channels andApproach run attribution analysis to be returned to the marketer.Showrooming Visiting a brick-and-mortar retailer to see an item considered to purchase and then converting online rather than in the store itself.Social Reach Demonstrates the shift of power from brands to consumers.User-Generated A recent shift from professionals publishing content to amateurs beingContent able to publish their own content. 79
  • 76. About IgnitionOne I gnitionOne is a digital marketing solutions users on and off their website. Our solutions company providing world-class proprietary are backed by cross-channel attribution technology and expert services to and analytic capabilities to drive actionable improve digital marketing performance. insights. IgnitionOne Advisor teams provide IgnitionOne’s integrated cross-channel Digital media buying, bid optimization and media-mix Marketing SuiteSM (DMS) helps marketers modeling expertise for online advertising across centralize, manage and optimize digital media, every channel. and understand cross-channel attribution while Visit us: helping to optimize conversions on a marketer’s website. On top of this world class marketing technology, we provide services that help Follow us on Twitter: marketers manage paid search, display and @IgnitionOne Facebook advertising together, because digital marketing is not only simpler when it’s integrated, Like us on Facebook: but it is also more effective. At the core of what we do is our proprietary Engagement Scoring Contact us: Algorithm, which determines the value of a user in order to deliver the right message, at the right time, at the right cost to a marketer’s80 About IgnitionOne
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