How I Cut the Cord and Learned to Love OTT

Just how many months — no, years — does it take for a logical, clear-headed, money-conscious, well-informed consumer to overcome inertia, cut the cord in his home television habits, and move to OTT?

Just how many months — no, years — does it take for a logical, clear-headed, money-conscious, well-informed consumer to overcome inertia, cut the cord in his home television habits, and move to OTT?

I’ll let you know when it happens.

Yes, I’m one of those Americans — a dwindling number, but we’re still a force. Being charged a couple hundred dollars every month with our stripped-down, no add-ons triple-play (phone/TV/Internet) packages, because there’s no cable competition (in my building) and Spectrum knows it. We don’t even have access to Verizon or AT&T, or RCN, either. Such a dilemma.

Thank goodness for Mom and Dad. They don’t pay my bills. But they donated to me their Roku device when they upgraded their own TV sets. They also added me to their Netflix account as a gift, and now my viewing habits — finally — are changing. Scheduled television via cable at home is clearly on the wane. On linear TV via cable, I watch local news and live sports, mostly — and even some of that I can stream.

As stuck as I am in my ways … I’m about to go bold. And do the deed. Snip! (Well, we’ll see.)

In the meantime, advanced television is clearly on the rise.

“Ad spend on over-the-top (OTT) streaming video will increase 20% this year to $2.6 billion, according to a Winterberry Group study of U.S. ad spend data,” reports eMarketer. “Despite OTT’s surge, it’s still small — compared with the $69.2 billion that Winterberry Group estimates U.S. advertisers will spend on linear TV. For some advertisers, measurement challenges prevent them from investing more in OTT.”

A recent Direct Marketing Club of New York program included a panel of experts who parsed some of the challenges. With OTT, you have two worlds colliding — traditional television and traditional digital — and the user (me) has an expectation that online video, if I’m to watch it as programming, had best carry the quality of linear television. I even want my online video advertisements — hey, it’s ad-financed content on many platforms — to carry the quality of a TV ad, rather than a GIF. Still, I’m open to new ad formats here — I’m starting to enjoy 6-second ads, thanks to digital training. And I’m actively searching and browsing, often on a second device concurrently, some of it prompted by content and ads.

We Need Industry Standards …

What metrics matter to whom? Audience reach and eyeballs may coo the traditional TV media buyer (and seller), who simply wants those same or similar metrics digitally. And that may be fine for CMOs who live and breathe “passive” awareness, but addressable television’s real prize is data: user data, dwell time — and demographics — that shed light on a brand’s customers, one device or cross-device, and one view or continued view (start viewing a program on one device, and finish viewing on another) at a time. Here, “active” engagement metrics matter, such as clickthroughs, conversions, and attribution. These data drive the algorithms that target and tailor the advertising.

And remember the Big Data “ouch” when mobile, social, and local users flooded the market? Same goes here: “Data is overabundant, non-standardized, and non-harmonious,” said one panelist. We need to codify, standardize, and become screen-agnostic in our reporting. Certainly, people expect viewing on a TV to be different than viewing on a smartphone. Marketers need to know device use metrics to see how ad delivery may need to differ. Yet the user metrics do need to be agnostic — audience and engagement metrics need to be settled upon for the marketplace to trust, verify, and grow. That’s because in OTT and Advanced Television, “data is the most important ROI.”

I didn’t have to finish my blog at any particular time today — thanks to TV on demand, anywhere. Oh wait a minute, I gotta shut my laptop: the season finale of “RuPaul’s Drag Race” starts in 10 minutes, and I’ve been looking forward to it for two weeks! Inertia, indeed.

Personas, Be Gone: 1:1 Marketing Revisited

Soccer moms, coffee house professionals, gears-and-gadget guys — in the world of data marketing, the audience personas available to select from enterprising data vendors go on and on and on. Tailoring and targeting based on personas — with hundreds of variables and data elements — dominate the business rules that direct billions in media spending and gazillions of business rules built inside customer journey mapping.

Millennials are not the only ones who eschew labels.

Soccer moms, coffee house professionals, gears-and-gadget guys — in the world of data marketing, the audience personas available to select from enterprising data vendors go on and on and on. Tailoring and targeting based on personas — with hundreds of variables and data elements — dominate the business rules that direct billions in media spending and gazillions of business rules built inside customer journey mapping. Practically every retailer, every brand, has a best customer look-alike model — and segments to that model.

But ask most consumers — they say they don’t want it that way.

An international survey released last week by Selligent Marketing Cloud, reported by Marketing Charts, says that 77 percent of U.S. consumers want to be marketed to as individuals, rather than as part of a larger segment.

Credit: MarketingCharts.com

The take-away seems to be that personalization at a 1:1 level should be any brand’s consumer engagement mantra. Throw out those data segments to which you may think I, the consumer, belong. “Pay attention to what I’m doing!”

That Darn Privacy Paradox … Again

Yet there’s a paradox here. “Paying attention to what I’m doing” raises the creep factor. The same survey shows that nearly eight in 10 consumers have at least some concerns about having their digital behaviors tracked, findings that seem to echo greater societal concerns about technology and business, with real branding impact.

Part of the addressable media conundrum comes down to intimacy. My mailbox is outside my door. I have no issues with personalization there, and I expect it. But pop “into” my laptop and now you’re getting closer to how I spend my days and nights — moving between work, play and life. That gets even more pronounced on the most intimate media of all, my smartphone. (I suppose a VR headpiece might be the “what’s-next” level of intimacy — or an embedded chip in my forehead.)

Conflicted as a marketer? Which path does my brand follow?

Revisiting Moments of Truth

One might argue that going from mass marketing to 1:1 marketing is an easier step than going from database marketing to 1:1. I’m reminded of Procter & Gamble’s moments of truth, freshly updated. A brand doesn’t need to know everything I do all day long in order to recognize the critical moments when purchase consideration comes into play. Less in-your-face, more in-the-right moment.

“Delighted, table for one.”

Whether database or 1:1 (or some combination of both), I cannot think of a smarter marketing scenario — one that engages the consumer — that does not depend on data, analysis, insight and action. Even the beefs that consumers have with marketing — remarketing when the product is already bought, not being recognized from one screen to another, for example — are cured by more data (transaction data, graph data, respectively here), not less, and such data being applied in a meaningful way.

“I’ll order the sausage, please. It’s delicious.” (Just don’t tell me how it’s made.)

In this age of transparency, we can no longer hide behind veils of ad tech and algorithms. We must explain what we’re doing with data in plain English. Based on the Selligent Marketing Cloud survey, for most consumers, it seems the path is to tell exactly how data are collected and to serve each as individuals. And we need to be smarter when, where and how ads are deployed even ad professionals are blocking ads today.

As for vital audience data, maybe we should re-think how we explain segmentation to consumers — less about finding “lookalikes” and more about serving “you,” the individual.

San Diego Dreamin’ – Charging Through ‘The DMA’

The last time the Direct Marketing Association held its annual conference in San Diego, it was 2009, we were all amid The Great Recession, and having been recently thrown out of a job, money was just too tight to attend on my own. Since then, marketing has changed—a lot—and the U.S. economy overall is in better shape than it was. Folks, looking back, we avoided a Depression

The last time the Direct Marketing Association held its annual conference in San Diego, it was 2009, we were all amid The Great Recession, and having been recently thrown out of a job, money was just too tight to attend on my own. Since then, marketing has changed—a lot—and the U.S. economy overall is in better shape than it was. Folks, looking back, we avoided a Depression.

I endured, and so did DMA. It’s 2014: The conference offering is as good as ever, and there’s simply no better place in the world for data-driven marketers to gather, learn and exchange. While I might argue, all of marketing, and all of advertising, has become data-driven, let’s not forget that measurability and accountability had its historic home in direct marketing … going back to at least 1917. ROI lives here.

It’s always good to get to The DMA early, to support Marketing EDGE (note, a client) and its Annual Awards Dinner, this year honoring Michael Becker and Google. If you didn’t make it Saturday night, you can still contribute via Marketing EDGE’s first foray into social fundraising. Literally hundreds of thousands will be raised this quarter to help build a bridge from students to market-ready marketing professionals.

Come Monday (today), it’s full-on with the conference: and I won’t be missing Magic Johnson giving “Part 3” of the opening keynote, right after DMA Chairman JoAnne Dunn, CEO of Alliant, gives the association address (can’t recall when a DMA Chairman has taken on this role at the conference), with KBM Group, joining Shell and Air Canada, on “The Evolution of Engagement: The Modern Reality of One-to-One.”

I also can’t miss “Data-Driven Marketing Genius: Google, Xerox and a Foreign Film Festival”—the first-time actual International ECHO Award Winners (they don’t know what they’ve won yet) get a main stage to tell the story behind the marketing campaigns that “Wowed” this year’s ECHO judges (including me). Happy Halloween: I’m still shaking over that Horror Festival campaign.

And since I can’t wait ’til January for my “Downton Abbey” fix, I plan to listen in on “Big Data Helps Keep Downton Abbey Alive for its Fans,” which I’m hopeful gives insight on how a popular TV program gives public television more fundraising lift through brand engagement. I’m curious about the Big Data angle.

“What’s the role of the Agency?” seems to have captured a La Jolla wave. Sessions such as “The New Engagement Agency: A Real-Time Revolution,” and “Agency A-List: The Changing Face & Role of the Agency in 2015” speak to some of the digital disruption that is going on, while Brian Fetherstonhaugh of OgilvyOne Worldwide addresses “E-Commerce: The Crucible of Customer Engagement” (all the more interesting, given Ogilvy’s creation of a new analytics agency, OgilvyAmp.)

By the time Wednesday comes, I will be exhausted, inspired and ready to put some newly learned know-how to the test—and I hope to come home with new business contacts, too—but only after I catch a wave and a libation at the Coronado.