The Data-Inspired Big Idea: Why That Matters in the Ad Business

We are amid an age where consumers are royalty — and it’s the brands that serve them. Yes, data science is required to uncover insights and inform the creative strategy, for both prospecting and retention. But that big idea still lies in the creative execution.

I just got schooled this past week at the Association of National Advertisers Masters of Marketing Conference in Orlando, along with 3,000-plus industry colleagues.

You see, I’m a data- and direct marketing- junkie. Advertising is worthless if it’s not accountable and measurable (check and check). As I was reminded repeatedly this week it also must be memorable (not always checked).

What does this mean? That in today’s always-on but distracted consumer marketplace, the ad message must tell a story. It needs compelling creative, a message that resonates, and a big idea that’s transparent and authentic and unique to a brand.

We are amid an age where consumers are royalty and it’s the brands that serve them. Yes, in the customer experience mix, data plays a pivotal role. Yes, data science is required to uncover insights and inform the creative strategy, for both prospecting and retention. But that big idea still lies in the creative execution that’s the clincher. If it doesn’t hook, then it’s not going to stick.

Brand-Building Requires Purpose and Perspective

Consider some of these executions showcased at the conference, and look for how the brand creates an emotional connection:

Disney | The Little Duck

Target | Design for All

Chipotle | Bee For Real

Ally | Banksgiving

Dunkin | Fuel Your Destiny

https://youtu.be/31A1EsTZlHA

The Data Play in ‘Brand Crave’

Then ask yourself, what role does data play in these brand stories?

At the conference, there were plenty of CMOs discussing first-party data, customer journey mapping, personas, net promoter scores, operational data, transactional data, and sentiment scoring among other metrics and inputs. Even second- and third-party data were mentioned (albeit briefly here) about how to expand reach, discover new customers, and deepen understanding with existing customers. These data points also inform the creative brief, as well as shape the media strategy.

Researchers still report that consumers still base many of their buying decisions on impulse, and on emotion. According to Kirk Perry, president of global client and agency solutions at Google, as much as 70% of advertising success depends on creative; and Kai Wright, lecturer at Columbia University, reported on how emotion weighs into consumer consideration and purchase behavior (see Image 1).

Image 1:  Emotion & Experiential Data Motivate Consumer Behavior, Perhaps More Than Audience Data

Data-Inspired big idea image
Credit: Kai Wright, Columbia University, ANA Masters of Marketing Conference, 2019.

SAP CMO Alicia Tillman reports that humans experience (and act upon) 27 emotions (Image 2). “Any one can make or break a brand or category.”

Image 2: Lots of Sentiment Scoring

Data-Inspired big idea sentiment scoring
Credit: Alicia Tillman, SAP, at ANA Masters of Marketing Conference, 2019

“Nobody can differentiate on data! It’s data-inspired storytelling that is going to win the future,” said Rishad Tobaccowala, chief growth officer at Publicis Groupe.

We are great at curating audience data. For a next-generation data ecosystem, what are we doing to help create more effective marketing through finding innovative ways to score emotion, at-scale?  What are we doing to include these consumer motivators in our business rules, algorithms and to help enhance creative prowess in authentic ways? You solve for these opportunities and there are many brand leaders and CMOs likely ready to talk to you.

It’s time to help brands tell their data-inspired stories.

 

Tips for Entering Awards: Why Earning an ECHO Means More Now

Here are a few tips for a better campaign entry into the Association of National Advertisers International ECHO Awards competition.

A lot of people don’t realize that the Association of National Advertisers International ECHO Awards competition has been around a long time a really long time like 90 years! Nearly as long as ANA itself.

But this is the first year, from call to entries (Spring 2019) to awards presentation and gala (March 2, 2020, in Orlando at the all-new ANA Masters in Data & Technology Conference), that ANA has complete stewardship of these global top awards in data-inspired marketing. ANA inherited the ECHOs from its acquisition of Data & Marketing Association last summer.

Wow, if you ever wanted to showcase your data prowess in brand engagement, then this year and all years, going forward is a most-perfect opportunity to do so. ANA’s mission is all about brands and growth. Now’s our time to show brands firsthand how data is today’s workhorse in brand engagement and can integrate, beautifully and strategically, with creative storytelling and, vitally, produce business results.

This is how you earn (and win) an ECHO, with the extended call for entries open until Aug. 30. No last chance for a summer Friday!

Tips on Prepping a Better Award Entry An ECHO or Anywhere

I’ve had the opportunity to serve as a judge and jurist on several award competitions and recently, I conferred with some of my judging colleagues of the ECHOs. Here’s a few resulting tips for a better campaign entry.

Why Enter Awards, in the First Place?

First, it helps your career to gain recognition for marketing excellence among peers, your boss, your clients … and with ANA fully vested in brands (and their ad partners), that’s a whole new layer of industry recognition. Second, by becoming part of a knowledge base of “the best of the best,” you help elevate the practice of data-inspired marketing at a moment in marketing history where data-love is in high demand.

Prep Your Entry Offline Before Entering Online

Prepping the entry offline allows more freedom to write and rewrite, spell check (yes, THAT matters), and just make sure you cover each section thoroughly. Also, if English is not your first language (this is an international competition but administered in English), consider having someone who is a native English speaker review and edit your entry. That will help make sure mistakes in language don’t affect judges’ abilities to comprehend your brilliance.

Be considerate of the way judges will be reading your entry … so do NOT write one long paragraph. Instead, break sections of explanatory copy up into smaller paragraphs and don’t be afraid to bullet copy to convey or emphasize key points.

Give Context Regarding the Problem or Opportunity That a Campaign Seeks to Solve for

Don’t assume a judge has heard of the advertiser or is familiar with its products or services selected judges may come from all over the world. Set the stage for the story you’re about to tell, so it helps put your entry in a business context.  Data-inspired campaigns rely on a data strategy. Provide key insights into a brand’s target audience and what you were trying to accomplish and how data intelligence informed the campaign.

Make sure to tie results back to campaign objectives … because if you don’t, it will leave the judges wondering if you actually achieved a meaningful outcome. Make sure you provide plenty of detail and use substantive quantitative terms that speak to engagement and business goals.

Yes, it’s okay to share campaign metrics, such as open and clickthrough rates, response rates, social amplification, participation rates, and such. But a winning campaign moves the needle on business success. So having some type of business result either actual or indexed help’s judges discern the extraordinary from the merely accomplished.

Use a Storyboard or Short Video to Sell the ‘Wow’ Factor in the Campaign

Finally, any top advertising award is going to require some type of “wow” innovative creative or use of technology, stunning results, or a new strategic approach (or rarely, all three). We’re storytellers so use a creative device in the award entry to help “sell” the campaign with a bit of wit.

Video today is wisest to use even expected but even a storyboard summarizing campaign highlights helps. This is your chance to tell the judges why you believe your efforts deserve an ECHO. What makes it so noteworthy among the hundreds of entries that this campaign commands to be recognized? Don’t just repeat your results … dig down deep to help judges your peers, and brand leaders among them really understand why a particular marketing achievement is so incredible.

Conclusion

So after this month, it’s onto judging rounds this fall and the ECHO awards presentation and celebration in winter (in Florida, thank you). For that reason alone, it’s a great year to earn you, your brand, your colleagues, and your clients an ANA ECHO.

What’s the Price on ‘My Data’? Let the Marketplace Set the Rate

A bipartisan bill in Congress would assign the U.S. Securities and Exchange Commission with the task of determining what consumer data is worth; at least when it comes to Big Digital giants. So what’s my data worth?

A bipartisan bill in Congress would assign the U.S. Securities and Exchange Commission with the task of determining what consumer data is worth; at least when it comes to Big Digital giants. So what’s my data worth?

On the face of it, having the government mirror the private sector, and recognize that consumer data is a valuable asset, is actually quite wise. Data is worth something — and accounting rules, risk management, capitalism, and a reverence for asset protection — all point to a need to understand data’s worth and secure it accordingly. But should the government come up with the arithmetic? Really? And why limit this to Big Digital … data drives all economy sectors!

If this is about commerce and productivity, and facilitating next-generation accounting and capitalism, then I’d be all gung-ho. If it’s about setting the stage for just being punitive, then perhaps we can and must do better.

Take privacy. I’m already getting click fatigue — with permission notices on every site I want to visit, as well as the apps I use, it’s no wonder people are questioning if laws like GDPR and CCPA really afford any meaningful privacy protection at all, as well-intended as they may be. Privacy is personally defined — though universal principles need apply. Again, I think we can and must do better.

Recognizing data’s value — as the fuel for today’s economy — means recognizing data’s limitless beneficial uses (and encouraging such uses and further innovation), while putting a no-go ring around unreasonable uses (like throwing elections).

Business Efforts to Calculate Data’s Worth

“My data” is a misnomer. On the data valuation front, we from the direct marketing world — purveyors of personally identifiable information (PII) — have been putting a price on data for years … and understand data’s value, intrinsically. Big reveal: It’s not about me. (Sorry, Taylor Swift.)

Worldata, for example, has been tracking list prices for decades, and dutifully reporting on this. In the world of direct response, there’s “sweat equity” in both response and compiled lists. For response lists, some enterprise built a list of customers (or donors). The value of that list is derived from the shared attribute those customers have – and not, as some privacy advocates would have it, with the sum of one individual after another appearing on that list. With compiled lists, observable data is harnessed and staged also for marketing use – providing a more complete view of prospects and customers. Again, the value is derived from the attributes that data subjects share.

Even in digital data driving today’s media placement for advertising (more accurately, audience placement) — the algorithms deployed in search, social, and display — the values of these formulae are derived from affinities in these proprietary calculations, much of it anonymized from a traditional PII perspective. Yes, there are lots of data — nearly $21.2 billion in U.S. trade alone — but it’s not hoarding; it’s being put to productive use — in effect, 1:1 at mass scale.

With any innovations, there are bound to be mistakes by good companies, and some bad players, too. But it’s amazing to see how the marketplace weeds these out, over time. The marketplace, in time, weeds out the wheat from the chaff. The industry comes up with brand safety, privacy, security, chain-of-trust, and other initiatives to help facilitate more transparency and control. And testing shows which data sources are timely and reliable — and which ones where data quality is in question.

Predict This: Data Unleashed for Responsible Use Unleashes Consumer Benefits

Recently, I heard a current federal official say that data may be fuel — but it’s not like oil. Oil is finite. Data, on the other hand, is a limitless resource — like fusion. And it can be replicated. In fact, he went on to say, the more it is shared for responsible data use, the more consumers, citizens, commerce, and the economy benefit. This is correct. The commercialization of the Internet, indeed, gave us today’s global Digital Economy — giving billions access to information where they are able to derive limitless benefits.

That’s why potential breaches of data do need to be risk-assessed, prevented, understood for a likelihood of harm — with data governance and employee training thoroughly implemented. That’s also why government should investigate significant breaches to detect lax practices, and to instruct enterprises how to better protect themselves from bad actors. Here, I can see a viable SEC role, where all publicly held companies, and privately held too, are called into question – not just one type of company.

Where privacy is concerned … don’t just divide Big Digital revenue by the number of users with social accounts — and start menacing on what data about me online may be worth. That immediately starts off with a false assumption, fails to recognize information’s exponential value in the economy, and denies the incredible social benefits afforded by the digitization of information.

The Digital Advertising Alliance (a client) conducted a study in 2016, and found that consumers assign a value of nearly $1,200 a year to the “free” ad-financed content they access and rely upon via digital and mobile. However, if they were forced to pay that amount – most would not be willing (or able) to pay such a premium.

This research shows why we need to protect and facilitate ad-financed content. But it’s part of a larger discussion. It’s about why the commercialization of the Internet has been a 25-year success (happy birthday, October 24) and we must keep that moving forward. As consumers, we all have prospered! Let’s start our discussion on data valuation here.

 

Where Do You Start? Teaching Direct Marketing to College Students

What’s the best approach to engage college kids in understanding direct marketing? Principles first; metrics second? Or Metrics first; principles second?

What’s the best approach to engage college kids in understanding direct marketing? Principles first; metrics second? Or Metrics first; principles second?

I remember sitting in the parlor of a Catholic parish rectory in North Jersey while my wife was participating in a wedding rehearsal. The Mets game was on TV. The brother of a parish priest who was visiting from Ireland asked me to explain baseball. Explain baseball?!?! Where do you start?

Despite all of the professional speaking and training I’ve done in direct response marketing, the first time I taught a college course devoted entirely to it was last spring. I started with the fundamental concepts of media, offer, and creative. I had them write about each of these concepts from their own experience. We went over the various targeting opportunities marketers have online and offline. And at the end, we covered measurement and metrics.

At the end of the course, I asked the students to tell me what worked, what didn’t, and what should be changed. The most insightful comment was from a student who said:

“I wish you had covered all that measurement content at the beginning of the course. It made me realize why all that other stuff was important, and how it fit into the big picture.”

HELP!

Now, as I embark on teaching a course dedicated to Direct Response Marketing at Rutgers School of Business Camden, I’m looking for advice about how to sequence things.

Last year, when I bemoaned the lack of an appropriate up-to-date textbook for this discipline in this column, Dave Marold and Harvey  Markowitz stepped up and recommended the Fourth Edition of “Direct, Digital, and Data-Driven Marketing,” by Lisa Spiller. (Thanks for that Dave and Harvey; I’m using that book in the Fall).

What Do You Think?

Now I see the benefit of stressing measurement early. Even though I told the students every class that the coolest thing about direct marketing is that you can measure it, apparently the mechanical reality of measuring something like search engine keywords was not real for them. So:

  • Do I incorporate some form of measurement into every lesson?
  • Do I introduce a comprehensive measurement unit early in the course? (Spiller’s book does that early on, in Chapter 4).
  • Or, do I go full-on “math course” at the beginning, and thin a 40-student class down to 20 students after two weeks? (Just kidding).

Opinions welcome. (Actually, encouraged.)

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.

7 Privacy UX Tips From a Privacy and Marketing Expert

There are all kinds of marketing awards, but how about one for privacy UX? How do you make your customers comfortable with your privacy user experience? It’s not just agencies — but ad tech and martech companies, data providers, analytics firms and even management consulting firms that are in the data-driven mix.

Do we need to have an award for a better Privacy UX?

With the Association of National Advertisers’ acquisition of the Data & Marketing Association last year came new ownership, too, of the International ECHO Awards. As a lover of data-driven marketing (and an ECHO Governor), it’s very exciting to see brands recognize the strategic role of data in driving more relevant consumer (and business) engagement, and the myriad ad and data partners that brands rely on to make this engagement happen.

It’s not just agencies — but ad tech and martech companies, data providers, analytics firms and even management consulting firms that are in the data-driven mix. These are the facilitators of today’s consumer intelligence that forms the basis for smarter and more efficient brand communication. Some folks even eschew the term “advertising” as we move into a world where branded and even non-branded content underlie data-inspired storytelling that are hallmarks of today’s forward-thinking campaigns.

By the way, the call for entries for this year’s ECHO Awards (to be presented March 2020 as ANA moves what was the DMA conference from this Fall to next Spring) is happening soon — though the entry portal is now open. Let me know if you’d like an invite to the launch party in New York (Wednesday, May 22, in the afternoon).

An Important Part of Brand-Consumer Dialogue — Privacy Notices

One category that won’t be part of this year’s ECHOs is related to privacy-specific communication from brands.

You’ve seen it. I’ve seen it. Again and again — all over our smartphone and laptops … communications asking for our consent for cookies, for newsletters, for device recognition, for terms and conditions — all in an effort to help enable data collection to serve the brand-consumer value exchange and subsequent dialogue.

Some of this is mandated from Europe’s General Data Protection Regulation, with halo impact in other nations and markets. Others are anticipating such notice requirements from California’s forthcoming privacy and advertising law. Still others are simply adopting heightened transparency (and choice) as part of self-regulatory and best practices regimes, where no laws may yet exist.

All of this devoted to one objective: getting a consumer (or business individual) to say “yes” to data collection about them, their devices and digital behaviors, in an effort to serve them better.

This week, during the International Association of Privacy Professionals’ Global Privacy Summit 2019 in Washington, DC, one expert — Darren Guarnaccia, Chief Product Officer, Crownpeak — offered some research insights from some 17 million preference experiences that Crownpeak has helped to facilitate on behalf of its brands. These experiences are focused on Europe in light of GDPR, but the findings offer good counsel to any brand that is thinking through its privacy UX.

Some Privacy Communications Concepts to Test

Here are just a few of the tips Guarnaccia reported:

  • Privacy Notices are Not Just a Matter of Compliance: Yes, they may be legally required in some jurisdictions – but more vitally, they should be treated with the same discipline and care of any other branded communication. Because the ultimate goal is to earn trust — going beyond compliance and permission. As a result, the whens, wheres and hows of such notices are vital to test and perfect.
  • Avoiding Legal Penalty Is Table Stakes — We Ought to Design Such Notices for Higher Purpose: To extend the previous point on consumer trust, there’s a higher price to pay if a privacy notice simply meets a legal expectation, and nothing more. Many consumers have gone “stealth” — using ad blockers and going incognito on browsers. We must remind, convince or persuade consumers of the value a brand seeks to offer in exchange for permissions and consents for data collection, analysis and application. Are we extending such notice in plain language at the right time?
  • Brand’ the Privacy Communication: This may seem obvious — but it’s often overlooked. Does the privacy notice look like it’s coming from the brand — or from somewhere else (such as a browser or ad tech partner)? In gaining consent, it’s always superior for the notice to be owned, cared and looked after by the brand itself — even if a third-party (such as an ad tech provider) is facilitating the notice. Does the creative of the notice match the colors, fonts and point sizes of the brand content behind it? By extending brand requirements to such communication, a brand is taking “ownership” of the data collection, consent and trust-building directly — as it should, in the eyes of the user.
  • Earn Before You Ask: Oftentimes, the consumer is presented with a cookie or related privacy notice upon entering a brand’s digital property — first page, upon entry. Test giving consumers a more anonymized experience for the few page visits, and then present a notice — “Are You Enjoying What You’re Seeing?” where a data collection permission is then sought. This allows the consumer to indeed value what’s on offer in information on the site.
  • Give Consumers Both an ‘Accept’ and a ‘Decline’ Choice or Button: Many sites offer only an “accept” button, leaving the consumer with an impression that they can “take it or leave it,” with no sense of real control. Test offering both an accept or decline offer — just seeing the word “decline” reminds consumers they are in control — and the actual decision to “decline” becomes more apparent for those consumers who indeed wish to be stealth.
  • Test Progressive Consent: Not every Website (or app) may need immediate access to user data for all purposes of consumer engagement. For data minimization purposes, perhaps ask visitors permission to collect only basic information (say, for contact, site optimization or customer recognition purposes) first. Then, only when necessary for utility, ask permissions for location data or other data categories, alongside the rationale for such collection and consent, as those needs arise. Asking for everything, upfront, all at once, can be a real turnoff — especially if a user is “new” to a brand. Consumers love — and frankly, need to know — the context for the permissions they give (or deny).
  • Test Privacy Notices by Market: Did you know users in the United Kingdom, for example, are 1.4 times more likely to give consent than those in France and Germany? How notices are worded and rationales explained — how transparency is conveyed — can have a big impact between markets, so it’s best to test notices by individual market (and language) to optimize consent rates. In short, national cultures and language nuance matter, too, in privacy communication.

Conclusion

In summary, there’s more payback than just permission. Consent rates in Europe can go as high as 60 to 70 percent — and hurtling over cookie walls at 80 to 90 percent — when privacy communications are optimized. Crownpeak offered far more tips (and real-market examples) in its session — about search engine optimization, personalization, analytics disclosures and other related topics. But there’s also lifetime value, and indeed consumer trust in the balance. We have an entirely new area for many marketers to test, working with their counsel and technology colleagues.

Who knows? Maybe the best such privacy-focused campaigns could still win a 2020 ECHO — based on compelling strategy, creative and results toward an earn-their-trust purpose. Is there a courageous brand ready to show us how? After all, this is one area where we all benefit from ways to raise consumer trust in advertising by sharing successful case studies. We shall see.

Marketers Doing the Data Privacy Balancing Act Ask What ‘I Want My Privacy’ Means

It’s not just policymakers who are trying to figure out how to act on consumer sentiments toward data privacy. We all, overwhelmingly, want it — business and consumer.

data privacy
Credit: Pexels.com

It’s not just policymakers who are trying to figure out how to act on consumer sentiments toward data privacy. We all, overwhelmingly, want it — business and consumer.

We are all seeking a U.S. federal privacy law to “repair” what may be broken in Europe (hey, the toaster needs fixing), and to correct any perceived privacy shortcomings in California’s new law (scheduled to take effect in January). Will such a federal law pass this year?

One of the ongoing challenges for policy in this area is what’s been called the privacy paradox. The paradox? Privacy in the form of consumer attitudes, and privacy in the form of consumer demands and behaviors, rarely are in sync. Sometimes, they are polar opposites, simultaneously!

  • Should law be enacted on how we feel, or respectful of what we actually do?
  • How do we define privacy harms and focus regulation only what is harmful and to go light, very light, or even foster wholly beneficial uses?
  • Should private sector controls and public sector controls be differentiated?
  • Do existing laws and ethical codes of conduct apply, and how might they be modified for the digital age?

On top of this, consumer expectations with data and technology are not fixed. Their comfort levels with how information is used at least in the advertising sector change over time. In fact, some marketers can’t keep pace with consumer demands to be identified, recognized and rewarded across channels. Generations, too, have differences in attitudes and behaviors.

What’s creepy today may in fact be tomorrow’s consumer-demanded convenience.

Case in point: It used to be people complained about remarketing the ad following them around on the Net as they browsed. (All the same, remarketing works that’s why it was so pervasive.) Today, in role reversal, consumers sound off when the product they purchased is the same product they still see in the display ad. The consumer has little patience when brand data is locked in data silos: the transaction database doesn’t inform the programmatic media buy, in this scenario.

The marketing and advertising business have been trying to solve for the privacy paradox since the Direct Marketing Association assembled its first code of ethics in the 1960s and introduced the Mail Preference Service in 1971. (Today, the Mail Preference Service is now known as dmaChoice, and DMA is now part of the Data Marketing & Analytics division of the Association of National Advertisers.) During the 1970s, consumers could use MPS to both add their names to marketing lists, and to remove their names from marketing lists for direct mail. At that time, far more consumers sought to add their names. Later, MPS strictly devoted itself to offering consumers an industry-wide opt-out for national direct mail, with add-ons for sweepstakes and halting mail to the deceased.

During the ’70s, DMA also required its member mailers (and later telemarketers and emailers) to maintain their own in-house suppression lists. These ethics behaviors were codified, to some extent, when the U.S. government enabled the Do-Not-Call registry and enacted the CAN-SPAM Act to complement these efforts.

Fair Information Practice Principles A Framework That Still Works Wonders

So here we are in the digital age, where digital display and mobile advertising are among addressable media’s growing family. Again, the marketing community rose to the challenge enacting the Digital Advertising Alliance YourAdChoices program (disclaimer, a client) and offering consumers an opt-out program for data collection used for interest-based advertising for Web browsing (desktop and mobile) and mobile applications.

Over and over again, the pattern is the same: Give consumers notice, give consumers control, prevent unauthorized uses of marketing data, protect sensitive areas recognize advertising’s undeniable social and economic power, enable brands to connect to consumers through relevance and trust and act to prevent real harms, rather than micromanage minor annoyances. Allow marketing innovations that create diversity in content, competition and democratization of information. Let the private sector invest in data where no harms exist.

‘I own my data!’

Data ownership is a dicey concept. Isn’t there sweat equity when a business builds a physical or virtual storefront and you choose to interact with it? Is there not some expectation of data being contributed in fair exchange for the digital content we freely consume and the apps we download and enjoy? And once we elect to become a customer, isn’t it better for the brand to know you better, to serve you better? Shouldn’t loyalty over time be rewarded? That’s an intelligent data exchange, and the economy grows with it.

The demand for access to everything free, without ads, and without data exchange, without payment to creators is a demand for intellectual property theft. Sooner than later, the availability and diversity of that content would be gone. And so would democracy. If you put everything behind an ad-free paywall, then only the elites would have access.

‘But I pay for my Internet service. I pay for my phone service!’

Sure you do and that pays for the cell towers, and tech and Web infrastructure, union labor with some profit for the provider. But unless you’re also paying for subscriptions and content it’s advertising that is footing the bill for the music you listen to, the news you read, the apps you use, and so on. All the better when ads are relevant.

At the end of the day, the consumer is always right and privacy is personally defined.

I’m all for limits on what governments can do with data when it comes to surveillance, and how it goes about maintaining our safety and security (a paradox of its own).

On the private sector side, policymakers might best act to give a privacy floor (do no harm) and where economic benefits accrue (to serve consumers without harms) allow consumers freely accessible tools to set their own privacy walls, using browser settings, industry opt-outs, brand preference centers and other widely available no-cost filters. It’s a wise society that can encourage responsible data flows, while blocking altogether irresponsible data flows. Get it right, and we all participate in a thriving 21st Century Information Economy. Get it wrong, and Europe and China will set the global rules. With some luck and deliberation, we’ll get this right.

DTC Brands — How Data Fluency Enabled a Digital Disruption

My small apartment building’s lobby is a testament to these changing behaviors — there’s barely any room for the incoming DTC brands and related subscription economy shipments, daily. UPS, Amazon, FedEx and USPS — and their contractor networks — are delivering the goods that pile up. No drones just yet.

One of the entrepreneurial wonders of the 21st Century economy is actually not a very new concept at all. Direct-to-the-consumer (DTC) brands have been around since the first mail-order catalogues. Names such as LLBean, Orvis and Lands’ End revolutionized remote selling, as they understood the power of data and measurement in building these enterprises, by earning customer loyalty through superior products and customer service, and generating lifetime value.

So perhaps it’s only natural that in an increasingly digital, social and mobile world where data enables such direct connections more fluidly and products can be personalized at-scale DTC startups would come to be powerful brands in their own right. Bonobos, Casper and hundreds of others are rising to disrupt consumption and create new patterns of consumer behavior for even the most everyday product. Just this week, Rent the Runway officially became the newest unicorn in the venture capital investment world.

My small apartment building’s lobby is a testament to these changing behaviors there’s barely any room for the incoming DTC and related subscription economy shipments, daily. UPS, Amazon, FedEx and USPS  and their contractor networks  are delivering the goods that pile up. No drones just yet.

If You Can’t Beat Them …

Most retailers today report that their biggest threat comes from DTC brands (see Figure 1). Yes, Amazon and private labels also are leading concerns … but the truth is that building a business with seamless data flows enables the customer, and not the product, to be front-and-center. Brands that embrace customer-centricity, and have the customer data directly, cull the benefits.

Figure 1.

DTC brands
Credit: eMarketer, 2019. Used with Permission.

When database marketing and customer relationship management came of age, we knew that pesky problems such as data silos, legacy systems, senior executive buy-in and lack of data bench strength were crippling. Where entrepreneurs love data and have great products and service, those hurdles don’t exist.

No wonder traditional brands are quickly starting up or buying their own DTC brands and relationships. There’s power in data, and having first-party data relationships with consumers even as third-party data, and perhaps a few social influencers, enable discovery and facilitate connection – has brought about the mail-order bonanza of the digital age.

Physical retailers are not powerless in this mix after all, point-of-sale transactions still rule, and hybrids are flourishing (online to offline, buy online pick up in store). It’s how quickly these stores can integrate POS and transaction data with other forms of advertising data, and even serve as data-sharing coops with the brands they carry, to serve customers better. It’s about more relevance and more personalization. We haven’t heard the last roar from Main Street, Big Box and shopping malls. They’ll need to tap data’s power in similar fashion to go back on offense.

Our Digital Selves: Living Without the ‘Big 5’ — And 7,000 Others

There, once again, is the age-old privacy paradox, which predates our digital selves. Do we — individually, as a society, as a matter of policy — understand the data-for-value exchange that is inherent not just on the commercial Internet, but in practically every business arrangement we have?

our digital selves
Chet Dalzell snapped this photo with his smartphone’s camera. (Curses!) | Credit: Chet Dalzell

During the past couple of weeks, I’ve been enjoying a thorough attempt by one Gizmodo editor, Kashmir Hill, to live life one week at a time without the titled “Big 5” — Amazon, Apple, Facebook, Google and Microsoft — and then to do so all at once.

“It was hell,” she reported.

Well, that statement alone could be interpreted as “unpleasant” or “impossible” or “really inconvenient” or “unenjoyable, or maybe all of the above. Hill’s attempts to quit cold turkey appeared to be very earnest and objectively pursued, though her editorial approach is not without a point of view: “The tech giants, while troubling in their accumulation of data, power and societal control, do offer services that make our lives a hell of a lot easier.”

Do I feel powerless with no control? I do not, but that’s a personal choice.

There, once again, is the age-old privacy paradox, which predates our digital selves. Do we — individually, as a society, as a matter of policy — understand the data-for-value exchange that is inherent not just on the commercial Internet, but in practically every business arrangement we have?

To shut off all data flows might be thought of as an exercise of a Luddite. Every individual can choose to live life this way, at least in some measure. Or perhaps it’s an exercise of being jaded: Among us, there are those who believe social media’s popular “10-year challenge” is a not-so-secret plot to update everyone’s likeness for facial recognition software.

Take a Regular Digital Break, Please

I, too, pursue and relish a weekend where I put my devices away, and go off the digital grid for hours or even one day at a time. A walk in the woods, or park, or beach, with no device in reach — and with just my thoughts – is an empowering and recharging experience (for me). It can drive my friends and family nuts, wondering where I am — but they’re used to it by this time.

Mom:

“You didn’t play ‘Words with Friends’ with me yesterday. Is everything OK?”

On the other hand, every day, I observe fellow citizens who seem unable to navigate a sidewalk, or ride an elevator, or even sit at a bar or restaurant, without having their heads down in smartphones. Kudos to them for processing digital information constantly … I think. I certainly can’t do that.

Yet to have a bias — either in practice or in policy — that blocks responsible data flows, truly is an exercise in masochism. As participants in the marketing data supply chain, we have ethical and some legal obligations to be capable stewards of data. We have associations, self-regulatory codes, and regulators that teach and tell us what to do.

Beyond the Big 5, we also have thousands of companies in the adtech/martech ecosystem — at last count, nearly 7,000. Any could be the next “big thing,” as investment flows seem to indicate.

Image of Ad Tech - Mar Tech Breadth

Slide Source: “Outlook For Data Driven Marketing: First Look 2019,” The Winterberry Group, 2019.

On top of these, we have brands and agencies using information, responsibly, to attract (discover), create (convert) and retain (serve) customers. This is not evil. This is innovation — and we shouldn’t fault a data-flow framework that facilitates commerce, consumer choice and diversity of content. We should scrutinize it for harmful data usage — and regulate the harm.

In short, every information use should be vetted. Wisdom, rather than fear, must be our starting point in such examination, with a healthy dose of data reverence. In advertising, we can (and must) have both consumer privacy protection and digital innovation. Achieving such dual, laudable outcomes, however, cannot be achieved if we are required to just shut down.

 

 

Media Outlook 2019: Spell Marketing with a ‘D’

The January marketing calendar in New York has included for the past decade or so a certain can’t-miss event of the Direct Marketing Club of New York. In 60 fly-by minutes, 100-plus advertising and marketing professionals hear a review of the previous year in marketing spend, a media outlook for the current year and macro-economic trends driving both.

The January marketing calendar in New York has included for the past decade or so a certain can’t-miss event of the Direct Marketing Club of New York. In 60 fly-by minutes, 100-plus advertising and marketing professionals hear a review of the previous year in marketing spend, a media outlook for the current year and macro-economic trends driving both.

Bruce Biegel, senior managing director at Winterberry Group, keeps everyone engaged, taking notes and thinking about their own experiences in the mix of statistics regarding digital, mobile, direct mail, TV and programmatic advertising.

“We will be OK if we can manage the Shutdown, Trump, China, Mueller, Congress and Brexit,” he noted, all of which weigh on business confidence.

Suffice it to say, marketing organizations and business, in general must navigate an interesting journey. Biegel reports estimated U.S. Gross Domestic Product (GDP) growth of 2.3 percent in 2019 down from 3 percent in 2018, while total marketing spending growth in 2018 had dipped below its historic level of exceeding two times GDP growth.

In 2019, we are poised for 5.3 percent growth in advertising and marketing spending a slight gain from the 5.2 percent growth of 2018 over 2017.

Watch the Super Bowl, By All Means But Offline Dominance Is Diminishing

Look under the hood, and you see what the big drivers are. Offline spending including sponsorships, linear TV, print, radio, outdoor and direct mail will spot anemic growth, combined, of 0.1 percent in 2019. (Of these, direct mail and sponsorships will each post growth of more than 3 percent, Winterberry Group predicts.)

But online spending growth display, digital video, social, email, digital radio, digital out-of-home, and search will grow by 15.5 percent. Has offline media across all categories finally reached its zenith? Perhaps. (See Figure 1.)

Figure 1.

Credit: Winterberry Group, 2019

Digital media spend achieved 50 percent of offline media spend for the first time in 2018. In 2019, it may reach 60 percent! So who should care?

We do! We are the livers and breathers of data, and data is in the driver’s seat. Biegel sees data spending growing by nearly 6 percent this year totaling $21.27 billion. Of this, $9.66 billion will be offline data spending, primarily direct mail. TV data spending (addressable, OTT) will reach $1.8 billion, digital data $7.85 billion, and email data spend $1.96 billion (see Figure 2.)

Figure 2.

Credit: Winterberry Group, 2019

Tortured CMOs: Unless She’s a Data Believer

Marketing today and tomorrow is not marketing yesterday. If marketing leadership does not recognize and understand data’s contribution to ad measurement, attribution and business objective ROI, then it’s time for a new generation to lead and succeed. Marketing today is spelled with a D: Data-Driven.

Unfortunately we don’t have all the data we need to manage Shutdown, Trump, China, Mueller, Congress and Brexit. That’s where sheer luck and gut instincts may still have a valid role. Sigh.