This document summarizes the key topics from a marketing conference. It discusses how marketing research has evolved over the past century from mainly using surveys to now leveraging big data. It provides details on the state of the US advertising industry, including projections that digital advertising will surpass television as the largest segment by 2017. The document also discusses challenges faced by traditional and digital agencies in becoming more holistic in their approach, as well as how econometric and machine learning models can be combined effectively. Breakout session topics are listed at the end.
5. …yet most marketers have
limited clarity on performance.
54%
14%
of marketers use last click
attribution…
consider last-click to be “very
effective.”
Last Click
#xcmo13
13. My challenge for you – get the most
out of your time from XCMO
› Engage in the conversation – ask
questions and share your POV
› Network and be social (tweet, post, blog)
› Have some fun and enjoy Austin
#xcmo13
15. Marketing Research
How we got here
› For more than a century marketing research had been done mainly with
surveys
– 1879 - N. W. Ayer conducts custom research in an attempt to win the advertising
business of Nichols-Shepard Co., a manufacturer of agricultural machinery.
– 1911 can be considered the year marketing research becomes an industry. That
year, J. George Frederick leaves his position as editor of Printer’s Ink to begin
his research company, the Business Bourse.
– Also in 1911, Kellogg's ad manager, R. O. Eastman creates the Association of
National Advertisers which is now known as the Association of National
Advertising Managers. The group’s first project is a postcard questionnaire to
determine magazine readership.
#xcmo13
16. Marketing Research
How we got here
› For more than a century marketing research had been done mainly
with surveys
– 1915, J. Walter Thompson establishes a Research Department
– 1922, Dr. Daniel Starch tests reader recognition levels of magazine and
newspaper advertisements and editorial content.
– 1923, Dr. George Gallup begins measuring advertising readership.
– Also in 1923, Arthur Charles Nielsen founds the ACNielsen company to
conduct marketing research.
› 1942, Nielsen inaugurates a National Radio Index for broadcasters and
advertisers.
› 1950, Nielsen begins their television ratings service.
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17. Marketing Research
How we got here
› For more than a century marketing research had been done mainly with surveys
–
–
–
–
–
–
–
The 1960s usher in the era of qualitative focus groups.
In the 1970s computers collect and store historically massive amounts of data and the
discipline of database analytics emerges.
The 1980s bring behavioral psychology to the arena of brand research and cable TV
revolutionizes broadcast media.
In the 1990s trends in in-market tracking include a greater focus on the multimedia nature of
entire advertising campaigns. CRM emerges.
The 21st century opens with a decade of global reach with the dawn of the Internet age. The
dichotomy of digital and traditional advertising emerges.
Now in the second decade of the century attention returns to the complete marketing
ecology. Online and offline brand engagement blurs into a continuum.
2007, JWT establishes its Marketing Science practice in Dallas
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22. Marketing/Advertising Agencies
It’s a jungle out there
› Full service agencies
› Creative agencies
› Specialized agencies
–
–
–
JWT
Demographic segments
Industry specific
Single client agencies
› Digital agencies
–
–
–
Web and social property design
SEO
Social
› Research agencies
–
–
–
–
Primary research (surveys & focus groups)
Database
Online analytics
Marketing analytics
› Media buyers
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24. Digital Divide
Meet in the middle
› The Internet has enabled us to track individual consumer behavior from first
ad exposure to conversion and has created opportunities to engage
consumers with brands interactively as never before.
› This has spawned a new category of research agencies devoted to analyzing
the start to end online journey.
› Until recently, this behavior was described and modeled as something
independent of exposure to all other marketing treatments.
› Clients have pushed back with business questions about how the conversion
behavior is influenced by the marketing ecology as a whole.
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26. Digital Divide
1+1=3
› Agencies have responded to this pressure.
› Traditional marketing agencies are in a mad scramble to
acquire or organically grow digital expertise.
› Digital agencies are doing the same with traditional
marketing.
#xcmo13
27. The Digital Agency Challenge
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28. The Traditional Agency Challenge
To increase his chances
of getting a job with a big
brand agency with his
degree in
Advertising, Arnold
enrolls in Machine
Learning 101.
#xcmo13
32. Symbiosis
Two-way information flow
› The key to success in connecting top-down aggregate data models that
operate at the channel level and user-level data models is to use information
from each to augment the other.
› Top to bottom
–
–
Top-down aggregate econometric models provide the view of the ecology at the channel
level.
This information can be used to scale the results of bottom-up models to the rest of the
channels to provide absolute attribution to the user-level aggregates.
› Bottom to top
–
–
Bottom-up machine learning processes can provide noise reduction to the econometric
models in the form of refined variable specifications.
This noise reduction enhances the discrimination power of all channel variables in the model.
#xcmo13
33. Econometric Models are Here to Stay
Long history of success
› Since the advent of the computer in the late 1950s econometrics has
transformed the business landscape.
› Many techniques dating back to the dawn of the applied economics age are
still successfully employed in today’s markets.
– Single equation models
– Simultaneous equation models
– Time-series models
› Lag models
› Vector autoregressive (VAR) models
› ARIMA with transfer functions
› The machine learning community needs to become comfortable with their
new colleagues who come to them from the social sciences.
#xcmo13
34. Artificial Intelligence
Short but solid history of success
› Machine learning is a mature discipline.
› Supervised and unsupervised data mining and modeling
techniques have proved their worth.
› Social scientists need to learn how to become
comfortable with their new computer science colleagues.
#xcmo13
35. HUDDLES #1
› 1A: Translating Insights Into Action: Taking the Last Step
from Numbers to Tangible Change
Will Stacy, SVP Marketing, Consumer USA, Santander
› 1B: Data Onboarding: Moving Your Offline Data Online for
Targeting Analytics, Attribution & Everything in Between
Paul Ohls, Managing Director Enterprise Accounts, LiveRamp
› 1C: Data Onboarding: Moving Your Offline Data Online for
Targeting Analytics, Attribution & Everything in Between
Krista Nye Schwartz, Director of Sales, Midwest Region, dstillery
#xcmo13
36. HUDDLES #2
› 2A: Examining Your Media Mix From A Start-Up
Perspective…No Matter the Size of Your Organization
Aimee Higgins, Head of Marketing, ROLI
› 2B: Identifying the Precise Moments in Media to Deliver a
Brand Message to Your Purest Audience
Rich Godwin, Director of Sales, West, dstillery
› 2C: Did Your Content Strategy Work? Maximizing &
Measuring The Return on your Content
Adam Weinroth, Chief Marketing Officer, OneSpot
#xcmo13
Editor's Notes
Welcome to the inaugural Cross-Channel Marketing Optimization Summit. We know your time is important and we greatly appreciate that you have chosen to invest the time to attend our event. We are excited by the amazing program of speakers, huddles, and networking activities we have planned for you over the next 1 ½ days. It is our sincere hope that by attending XCMO, you'll return energized and armed with ideas enabling you to set your sights higher and achieve an even greater return from your marketing. To set the stage for the event, let me walk you through a few things that motivated Adometry to invest the time and money in putting this event together.
Adometry is proud to now call over 70 of the leading brands and their agency partners our customers. And we are adding new customers at accelerating pace. And working closely with these leading companies, we have learned quite a bit about their challenges, motivations, and opportunities for taking their marketing to the next level. Without question, they are all under increased pressure to drive greater results from their marketing investments. And when we talk with these companies, we typically here three strategic opportunities that are on their priority list.
The first strategic priority is mastering the customer journey. The customer journey has become much more complex:Gone are the days of customers considering and buying within a single channel - new channels, new formats, and new devices are now part of a much more complicated and dynamic ecosystem.Not only are there many more channels for marketing and communicating with prospects, they use and interactivity among those channels has increased significantly.The opportunity: better understand and leverage each of the touch-points to provide more relevant and compelling communications, shorten the cycle, and provide a much improved brand experience.
Marketing may be the only game where last place wins. Whether it is last click or another rules-based measure of performance, we have limited clarity on the full-funnel performance of our marketing investments – and this is in the digital world. Even more, few marketers are considering the impact of digital on offline conversions, nor the impact of offline media (broadcast, print, direct mail) on digital performance.
The second strategic priority is leveraging data to drive better results. We now have more data, both broader and deeper at our disposal to driven improved marketing performance.Social profile and engagement informationLocation informationMore robust data capture and tracking capabilitiesThe opportunity: leverage this “big data” to better understand marketing performance, optimize investment within and across channels, and create and deliver more relevant messages at the right time and place, at scale.
According to IDC, the data available online has increased 9X in the past 5 years to over 2Z bytes. Projected to be 4X that in 3 years. Big data technologies are helping provide the capabilities to collect, integrate model, and take action based on greater intelligence. However, it is early stages and for many, it currently is much more hype than reality.
The third and final priority is becoming “omin-channel” in our approach. Today’s marketer has a rich arsenal of channels, formats, and devices through which they can reach their target market and customers. Ultimately the consumer will tell which channels work for which segments, for which part of the buying process.
The result is a largely untapped opportunity. For our customers we see on average, 25-40% of unrealized potential, whether it is removing waste, improving efficiency, or maximizing their mix, there is real money on the table for those focused on marketing, measuring, and improving their investments with a cross-channel view of their market. And they are compelling.
The XCMO Summit is focused on discovering new, breakthrough ideas and tackling the complex challenges of measuring and maximizing your investments across all your marketing channels—display, search, affiliate, email, social, mobile and offline. We hope the next 1 ½ days will provide opportunity to take a step back and think strategically as you share ideas and opportunities with some of marketing foremost best minds and thought leaders.
I would like take a moment to thank all of our sponsors who taken a leap of faith with a first-time event and are key to helping make this happen. I encourage you to take some time to get to know the them and the problems they help you solve.