How the Impact of COVID-19 Is Changing Marketing

Well, it’s not as if we can start 2020 all over again — we’re already halfway through this year thus far. Yet, we can say one thing, COVID-19 and its recessionary impacts may be hanging around awhile. How may this have changed marketing mid-year, and possibly changed it permanently?

Well, it’s not as if we can start 2020 all over again — we’re already halfway through this year thus far. Yet, we can say one thing: COVID-19 and its recessionary impacts may be hanging around awhile. How may this have changed marketing mid-year, and possibly changed it permanently?

Such prognostications have kept The Winterberry Group, a marketing research consultancy, plenty busy since March: reading the tea leaves of government data, industry interviews, marketing dashboards, econometric algorithms, and the like. Principal Bruce Biegel told a Direct Marketing Club of New York audience this past week that indeed June has been better than May, which was better than April — when the U.S. (and much of the global) economy was in free fall.

So what’s underway and what’s in store for us midyear? Have we turned a corner?

Our Comeback Will Not Be a U-Turn — ‘Swoosh!’

When unemployment shoots up to 17.1%, and 40 million American jobs either furlough or disappear, there’s going to be a lag effect. The “wallet” recession is upon us, as consumers hang onto their savings, or eat through them, so there’s not going to be the same level of demand that drives upward of two-thirds of the U.S. economy.

New York City is a COVID-19 epicenter — and the commercial real estate market may take five to 10 years to recover, reports The Economist (subscription required). Knowledge workers will return, eventually. But densely populated urban centers, where innovations accelerate the economy, may look and feel different for some time, and that in and of itself could hamper national and global growth. Can other innovation clusters stave off the virus to protect collaboration?

And then there’s our world of advertising. Biegel sees digital being a “winner,” as traditional media continues to take a drubbing. Linear TV spending dropped by a quarter this quarter, and direct mail by half. Experiential and sponsorship spending has been slashed by 75%, as concerts, live sports, conferences, and festivals all took a public health-ordered hiatus. Yet, even in digital categories, Q2 has yelled “ouch.”

Email is the only channel to have held its own, though pricing pressure has cut margins. Social, search, and digital display all have posted drops from 25% to 40% during the quarter — and though all our eyes were home watching Disney+, Netflix, and the like, even OTT/addressable TV ad spending was down by 5%. With the Newfronts coming this week, it will be interesting to see what types of digital media may post gains.

So if June’s “recovery” in media spend is any indication, Q3 (sans Olympics) and Q4 (yes, we’re still having an Election, last time I checked) should be solid though not buoyant. Biegel says it may be a “swoosh” recovery — think Nike’s logo — down fast, but up again slowly, steadily and resiliently. Which begs the questions: Can ad businesses, business models, and brands cope with a new reality?

The “new normal” is about coming out of the COVID-19 crisis — and half of executives surveyed by The Winterberry Group aren’t expecting miracles:

Medium-Term Budget Cuts

IAB-Winterberry Group State of Data (2020)

 Q3 Will Start a Recovery … of Sorts

Source: Advertiser Perceptions, Pivotal Research Group (2020), as reported by Winterberry Group

And, Biegel reported, that it may indeed take to 2024 — with COVID-19 firmly in a rear view mirror — for a recovery to be complete, according to IPG Mediabrands Magna. It is predicting a 4.4% ad spend contraction this year, a 4% recovery next year, and “subdued” results thereafter until mid-decade.

So How Have We Changed — and Will These New Behaviors Stick?

Some effects, though, may indeed have permanence in how Americans consume media — perhaps hastening trends already underway, or creating a whole rethink of how we act as consumers. Consider these impacts:

  • Streaming to TVs more than doubled during COVID-19 crisis. Have we rewired our video consumption habits away from scheduled programming for good?
  • Mobile data traffic surged 380% in March alone. Consumers have taken to their smartphones everywhere — so how has mobile viewing altered consumer’s screen habits across devices, and will it stick?
  • DTC brands and catalogs know all about remote selling — and so do millions of consumers who have now come to love shopping this way.
  • Video game use is up 60% — opening the door to more in-game advertising opportunities. This may change the mix of brands seeking to engage consumers there.
  • In January there were 280,000 posted job openings in data analytics. There are 21,000 today. More than half of marketers expect predictive modeling and segmentation to occupy their marketing strategy concerns for the balance of 2020.
  • Tangible value matters. Consumers will be demanding more pricing benefits from brand loyalty, and less VIP experiences. We may be getting tired of lockdowns but we are steadfast in a recession, savings conscious mindset.
  • Business travel – yes, your clients may be returning to the office, but do they really want to see YOU? What can B2B marketers and sellers achieve virtually?

It’s ironic, Biegel said, that privacy laws and the crumbling cookie are making customer recognition harder in the addressable media ecosystem, just as consumers expect and demand to be recognized. Identity resolution platforms will evolve to cope with these new marketplace realities — both of which are independent of COVID-19 – but the solutions will bring forth a blend of technologies, processes, and people yet to be fully formulated. These are still open and important marketplace issues.

So assuming we’re healthful health-wise, we have some challenges ahead in ad land. I’m glad to have some guideposts in this unprecedented time.

2020: A Big Year for Media Spend Will Underscore Data’s Role in Marketing Strategy

With the longest U.S. economic growth span on record, one might think the wheels may be about to come off of the economy — and marketing spend along with it. Not so, says Bruce Biegel, senior marketing partner at The Winterberry Group, during his annual forecast about marketing strategy.

It is the best of times.

With the longest U.S. economic growth span on record, one might think the wheels may be about to come off of the economy — and marketing spend along with it. Not so, says Bruce Biegel, senior marketing partner at The Winterberry Group, during his Direct Marketing Club of New York annual presentation, “The Outlook for Data Driven Advertising & Marketing 2020.”

marketing strategy
Source: Winterberry Group (2020), with Permission | Credit: Winterberry Group

Sure, there is caution. The Great Recession displaced many — and served to accelerate digital disruption from retail to finance to certainly marketing, forever. Perhaps businesses have never felt safe, sound, and secure ever since. One might call it “wise agitation.” And it really has been consumer spending that has served as the primary driver of growth, particularly in 2019.

Not the R Word …

Outside of business caution and flat earnings, where are the signs of another recession? They are hard to find.

Inflation and wage growth are hardly sputtering — even as the nation’s unemployment rates are at record lows. Trade rows and impeachment proceedings only appear to buoy the stock market. Even inside the world of marketing, privacy restrictions have not diminished the luster of data deployed for marketing and insight. And with the Olympics and a General Election this year, it should be times aplenty for many media channels, agencies, data providers, and tech companies — as these events are traditional hallmarks of spending.

So who are some of the winners in the current marketing and media environment?

… But plenty of D, Even Still

D, as in Direct: Biegel noted that “Buy Direct” is creating continuous rise and sale in DTC [direct to consumer] brands. The subscription economy is booming and traditional distribution channels — read, retail — continue with a “D” of their own, “disintermediation.”

“The five-year growth (through 2019) of DTC retail is four times that of the retail market revenues — 7.64% growth vs. 1.78%,” he reports.

That doesn’t translate to digital-first success, however, as such approaches are not scaling as rising costs in paid social, for example, are inhibiting customer acquisition.

marketing strategy
Source: Winterberry Group Spend Estimates (2020)

D, as in Digital: Online media spending overall grew by 19.1% in 2019 — compared with a 5.9% decline in offline media spending for the same year. Among all digital media categories in 2019, paid search grabbed the largest share — followed by display and paid social. Yet search spending “only” grew by 13.2%, compared to 21% growth for display, and 23% growth for paid social. For 2020, online media spending will continue to climb — reaching $166.4 billion in spending, while offline media will reverse its decline and post a 2.3% climb this year (remember, Olympics and Elections) to $223.1 billion.

D, as in Data: Data spending also posted healthful growth in 2019 — up by 5% — with another 6.2% growth expected in 2020. Is data working harder for marketers — as in, increasing marketing efficiency? Possibly. Spending on offline data dropped 5.5% in 2019 — while spending on email data and analytics posted 22.4% growth, and spending on digital media data and analytics (other than email) grew by 14.4%. Yet businesses are wholly satisfied with their own level of “data-centricity.” Biegel says, “Organizations are slightly more ‘data-centric’ this year than when asked in 2017 — on the whole, industry data-centricity is not progressing as envisioned.”

marketing strategy
Source: IAB-Winterberry Group Data-Centric Org (2020)

What’s Driving Data Strategy at Businesses?

Beigel reports three primary facilitators:

  • A desire to deliver better customer experiences;
  • Heightened regulatory compliance requirements and need to honor consumer preferences; and,
  • Increased demand to better leverage both first- and third-party data assets.

With a data-for-marketing marketplace in the United States now valued — both offline and online —- at $23 billion, those are three very important drivers that marketing professionals needs to get right. Or else our C-suite credibility may be diminished.

Artificial intelligence also has benefited from this reverence for data. Beigel reports that $11 billion has been invested globally in AI in the past five years — with 80% of marketers seeing AI “revolutionize” marketing in the next five years. Much of this investment is set on drawing insights from both structured and unstructured data sources.

And Where Are There Lingering Concerns?

Besides enterprise command of data assets, which could go either superbly or not, there are other concerns — both macro and micro, Biegel reports.

U.S. economic growth will likely slow to 1.9%, with global growth at pronounced risk. Corporate earnings may disappoint — leading to tightened purse strings. Tariffs may be reduced – nation by nation, region by region — but to what immediate impact? In short, Biegel says, “Limited tailwinds indicate that growth must be earned or bought.”

Among offline media there will be pockets of growth — outdoor, shopper marketing, linear and addressable TV — though direct mail will only squeak growth, with radio, newspaper, and magazines continuing their declines (even as their digital counterparts grow).

Search, display, and social will continue to dominate online media spend — but less mature channels, such as influencer marketing, digital video, and OTT [over-the-top] streaming, and digital audio will post rapid growth from much smaller bases. That portends good times for online data — but is it all rosy?

marketing strategy
Source: Winterberry Group Spend Estimates (2020)

For example, are customer acquisition and retention costs, though, declining in these channels? It may be that media inflation will eat into marketing efficiency, particularly if “targeting” data gets less precise and, as a result, relevance gets more elusive. Privacy restrictions, while well-meaning, are not always implemented in such a way that serve best consumers. Still, only 16% of businesses have reduced their spending and reliance on certain kinds of data as a result of new and potential data privacy regulations, Biegel reports.

So, come December 2020, will all of these predictions and concerns bear out? That’s one of the reasons I attend Bruce Biegel’s Annual Outlook at DMCNY each year. As great a prognosticator as he is and as on-target as his business, data, and economic models are — he’s always close enough to the market to say where struggles remain, where the work of data-driven marketing is hard, where hiccups happen, and the like. These are all of the many micro and macro reasons that any best of times can go awry.

His January 2020 predictions are now in the books — and we will all be back again in January 2021 — barring any hiccups.

How to Connect Digital Media Spend to Revenue Results

Digital media spend is likely one of the largest pieces of the budget. But is it being well spent? How can you tell? The media team and their agencies use a lot of new buzzwords to describe where it is being spent, but at the end of the day CMOs want to know exactly how much revenue that budget drove.

Besides content and labor, digital media spend is likely one of the largest pieces of the budget. But is it being well spent? How can you tell? The media team and their agencies use a lot of new buzzwords to describe where it is being spent, but at the end of the day CMOs want to know exactly how much revenue that budget drove.

Understanding the Media Spend-Revenue Connection

Before we jump to answer how to ensure you are tracking the spend, let’s review what we spend the budget on at a high level. This chart provides a simplified view of the most common channels in North America:

Major North American Media Channels
Credit: Pedowitz Group by Kevin Joyce

So let’s agree the media spend can be divided between paid search, promoted posts, ads, retargeting on social channels, and display and banner ads hosted on other advertising platforms. We don’t have to blind ourselves here with which particular advertising technology (AdTech) is being used to target ads, we are just looking to understand how we track media spend to revenue.

In the Old Days, It Was Simpler

10 years ago, most of our digital media spend was display ads and paid search.

Digital marketing 10 years ago
Digital marketing 10 years ago. | Credit: Pedowitz Group by Kevin Joyce

Back then, the expectation was that a prospect gave you their identity after just one click.

But once you paid for the click, and the visitor didn’t fill in your form, you had no further ability to interact with that person. So a lot of your spend was for naught.

But tracking the spend was easy. We used UTM parameters that were picked off by the forms on the website and this enabled connecting a lead source directly to the media spend. If our digital team was smart, we had all the UTM parameters and knew what campaign and ad generated the leads. All that was left to do was carry this info over to our contacts and accounts, and onto the opportunities and we had a media spend to revenue connection. Fast forward 10 years.

Channel Complexity From Digital Media on Social Platforms

The addition of extra channels, including the social channels makes tracking media spend back to revenue more difficult because there may be multiple interactions between a prospect and you, many of them paid for by you before they become known to you.

Digital marketing today.
Digital marketing today. | Credit: Pedowitz Group by Kevin Joyce

So now we can expect that a prospect won’t surrender their identity until they click eight or more times on your ads and content. But there is good news here. When they do click on an ad, or a blog post we are paying to promote, they get a cookie placed on their device. This allows us to target only people with that cookie with very specific ads (retargeting). So, it keeps our costs down, and those retargeting ads lead to forms that capture all the UTM parameters we talked about earlier. Also, if we are using a marketing automation platform, and that was the cookie we placed on their device, then all of their anonymous behavior is recorded and associated with the lead when they finally fill in a form.

Two important things happened in that last scenario:

  1. We got the ability to continue to market to individuals who clicked, but didn’t fill in a form by virtue of the social platforms providing the retargeting feature.
  2. We got to associate all the multiple interactions of an anonymous prospect, to our content, drive by media spend, because we were using a marketing automation platform.

Connecting the dots – media spend to revenue

So now the complete picture for showing attribution for media spend looks like this:

  • The top of the funnel focus is on getting people cookied (no form required here)
    • Once cookied we can track their behavior with our digital properties and content
  • The next step is to retarget those cookied people to get them to a form to identify themselves
    • Once we know who they are we connect their past anonymous behavior to the new lead
  • The next step is to start email nurturing to them with very targeted offers
  • Finally, they warm up, become SQLs, we connect them to opportunities.
  • All the UTM information, and the anonymous interactions captured in the marketing automation platform can associate your media spend with the closed won opportunities.

I simplified a few things, but the key point is this. It is possible to connect media spend to closed won opportunities. The proper usage of UTM parameters and your marketing automation platform can make this possible. Make sure your team can tell you how much revenue comes from the media spend and calculate the lag time.

Jobs for Everyone — Riding the Data Train to Washington

Positions in digital media and data analysis abound, and we’re still not training them fast enough to meet the demand — domestically. That means support for all aspects of data curricula at colleges and universities, and perhaps secondary education too, as well as retraining programs for displaced workers — something that did not receive nearly enough attention in the general election.

President-elect Donald J. Trump didn’t take long to take credit for an arrangement to keep a Carrier Corporation plant in the U.S. — even if there was some question over just how many jobs were in the balance.

Hanging onto good-paying manufacturing jobs certainly is a well-intended public policy goal, as long as we understand the incurred corporate welfare cost that was just shifted to the taxpayer. Still, a saved private-sector job is better than a lost private-sector job. However, it’s only a bridge or a bandage.

There are plenty of jobs — well paid and in America — that are dear to fill. Perhaps public policy, public and private education, research and development, and maybe even some philanthropy might do a better job preparing (all of) America for the 21st Century. We love STEM majors, but also critical thinking from liberal arts that give strategy to data analysis. AdTech and advertising are booming — we all need better and faster algorithms to help sell things efficiently, and data-informed creative skills to create more engaging and relevant content.

Let’s face it. America needs to re-orient itself for the “Data Train.”marketing dataPositions in digital media and data analysis abound, and we’re still not training them fast enough to meet the demand — domestically. That means support for all aspects of data curricula at colleges and universities, and perhaps secondary education too, as well as retraining programs for displaced workers — something that did not receive nearly enough attention in the general election.

Let the private sector do its work and let innovation grow the marketplace for jobs. Perhaps government can best help by researching and reporting what skills and training are desperately needed. This is not a call for central government planning, but if we can fund corporate incentives to “stay home,” we can certainly fund training and retraining programs for an Information Economy, based on the commercial availability and responsible use of data, that is providing financial well-being for millions of households, with millions more to come.

Hey, I’m all for “shovel-ready” jobs to rebuild American infrastructure — that well could be a bipartisan love affair that helps bolster global standing for “U.S. Open for Business.” But, also, in that same refrain, let’s demand a “jobs” plan that puts an emphasis on education and retraining for the Information Economy. The U.S. leads in this category — are we going to squander it?

Happy Holidays, and as you make your end-of-year giving, please consider our own livelihoods and future talent development in our field. Consider sponsoring a student and donate to Marketing EDGE. Philanthropy, yes, and an investment in a data-driven marketing career, one student at a time.

3 Reasons GIFs Have a Place in Your Marketing

We’ve all seen the GIFs of yesteryear: Flashing letters. Hokey cartoons. The dancing baby. Today, these are distractions and lack a certain classiness. Kind of like using WordArt. Now that doesn’t mean you can’t use an animated GIF, it just means you need to use them in a more sophisticated way and with an appropriate animation.

Okay, before we start, is it tomato or tomahto? Potato or potahto. Is it GIF or JIF? The creator of the format called Graphics Interchange Format, Steve Wilhite, says “jif” like the peanut butter. I’ve always said GIF with a hard “g.” The battle over how it’s pronounced is documented very well in a NY Times article “Battle Over ‘GIF’ Pronunciation Erupts” … but I’ll still say GIF.

The GIF format created in 1987 was popular due to its wide support across browsers and email clients. And in the early days, the animated GIF was one of the primary ways to add movement to a Web page.

We’ve all seen them. Flashing letters. Hokey cartoons. The dancing baby. Today, these are distractions and lack a certain classiness. Kind of like using WordArt.

7 Up SpotDrudge Siren Dancing Baby gifEmail me mailbox openUnder construction gifMy advice: Don’t do this today. Now that doesn’t mean you can’t use an animated GIF, it just means you need to use them in a more sophisticated way and with an appropriate animation. An animation that will enhance your message, not distract from it. Here are three reasons to consider the use of an animated GIF in your marketing messages:

1. Instructions/Training

Macaw demonstration gifIn this example, software company Macaw uses this GIF to demonstrate one of the features in its software. This is an excellent way to show a feature without forcing someone to watch a video or have to scroll through three to four static pictures. It quickly shows functionality.

You can use this type of animated GIF in an e-newsletter, too. Imagine showing a feature for a new version of software as Sprout Social has done below. It’s a case where the animation enhances the message.

Sprout Social gif2. Subtle Sense of Reality

Headscape homepage gifHeadscape, a digital media company in the UK, has a very subtle animation on its home page featuring an office scene (I highly suggest checking the site out via the link, since the image above is static and not animated … we weren’t able to capture the GIF). Notice the subtle movements of the pen and the person sipping coffee. I find these wonderful surprises.

Taking this one step further, you can create a cinemagraph, an animated GIF usually made from high-end photographs. The next two examples show how you can enhance a photo with either dramatic movement in the case of the Tokyo GIF or the more subtle Taxi Reflection. In both cases the animation enhances the viewing experience in an elegant way.

Tokyo cinemagraph
Cinemagraph courtesy of reddit user eatrob
Taxi cab window cinemagraph
Cinemagraph courtesy of Ann Street Studio. This studio produces wonderfully subtle cinemagraphs.

3. Enhance an Offer

You can use animated GIFs in fun ways to enhance an offer. The GIF can physically highlight the offer or simply bring attention to it.

‘Programmatic’ Goes the World – Media Buying Is Audience Buying

Direct marketers have long had a love affair with data-driven media buying. In the world of direct mail, for example, list rentals and exchanges are filled with data cards (once print, now electronic) rich with audience measurements—the very attributes marketers need to intelligently target their offers to would-be buyers.

Direct marketers have long had a love affair with data-driven media buying. In the world of direct mail, for example, list rentals and exchanges are filled with data cards (once print, now electronic) rich with audience measurements—the very attributes marketers need to intelligently target their offers to would-be buyers.

Response lists not only indicate consumers (and business) buyers who are pre-disposed to buy remotely—half the hurdle overcome—but often household income ranges, gender and other characteristics that enable exceptionally performing customer lookalike and predictive behavior models. Compiled lists supplement and enhance the audience profiles, too. Yes, the offer, strategy and creative each and all are vital, but it’s the list (the data) that makes the success of the offer, strategy and creative even possible.

Of course, this is all old news to direct marketers, including digital marketers who have “grown up” in traditional direct-response channels (direct mail, DR print, DRTV, etc.).

You have to love this LinkedIn piece from Pamela Carr—founder and general manager, Chicago Trib Shops Marketplace—who is advocating that while it is important to have long-term strategies in place to college educate a new generation of marketing students in digital marketing and execution. We have much more to gain, and more immediately so, by retraining the direct marketing professionals we already have to be fully digitally conversant. Why? Because direct marketers, old ones and new ones, truly understand data-driven marketing and audience measurements that unlock any media channel’s potential.

The turn to digital and rise of programmatic media buying exchanges for many media channels. Twice during the past year, The Winterberry Group and the Interactive Advertising Bureau have co-published two white papers on the rise of data-driven, programmatic buying: “Programmatic Everywhere: Data, Technology and the Future of Audience Engagement” and “Going Global: Programmatic Audience Development Around the World.” How wise that the emphases in these programmatic studies are on “audience” engagement—underlying data on audiences—rather than “media.” No wonder Google’s CMO recently announced that 60 percent of its digital media spend will be conducted through programmatic buying. (Google says digital here, but why not other media, too?)

I’ll be looking forward to The Winterberry Group’s Bruce Biegel, in his annual address to the Direct Marketing Club of New York on January 8, where he’ll detail a media recap of 2014—and for the first time projections for 2015—on total media spend, direct marketing media spend, and digital media spend—and the drivers (and inhibitors) of each category.

Who better knows audience engagement than traditional direct marketers? The sooner we can put direct marketers in charge of the programmatic exchanges, the better for all of advertising—and for the audience-brand interactions that will surely follow. Time for retraining!

2012 DMA ECHO Green Marketing Award Goes to: Vestas

The Green Marketing Award is not about marketing environmental products, services or causes. Rather, it’s about how efficiency and sustainability—and profitability—are incorporated in a successful marketing campaign. This year’s winner was Vestas Wind Systems (Arhaus, Denmark). The business-to-business campaign, targeting large-company executives at 23 Fortune 1000 firms, was remarkable in how it used market research, social media, direct mail and digital media to provide a truly personalized campaign to convince companies to consider wind energy as a power source for their operations.

During the summer, I had an opportunity to serve as a judge on a panel to select the Direct Marketing Association‘s special ECHO Green Marketing Award winner for 2012. That award was presented recently at DMA’s annual conference in Las Vegas, DMA2012.

The Green Marketing Award is not about marketing environmental products, services or causes. Rather, it’s about how efficiency and sustainability—and profitability—are incorporated in a successful marketing campaign. This year’s winner was Vestas Wind Systems (Arhaus, Denmark). The business-to-business campaign, targeting large-company executives at 23 Fortune 1000 firms, was remarkable in how it used market research, social media (InMail via LinkedIn), direct mail (custom Bloomberg BusinessWeek magazine wraps) and digital media (EnergyTransparency.com) to provide a truly personalized campaign to convince companies to consider wind energy as a power source for their operations.

Vestas tapped two research firms, Bloomberg and TNS Gallup, to complete two studies. One was a Corporate Renewable Energy Index that reported on corporations’ energy consumption, and the second was a Global Consumer Wind Study, that examined consumer demand for renewable energy. The surveys documented that consumers want products made with wind energy, and that corporations are eager to source more renewable energy.

Working with its agency partner, Vertic Inc. (New York, NY), the campaign targeted 419,000 employees and 300 top executives inside the 23 companies. Audiences were segmented by geography, seniority, work role and industry. Opinion leaders also were targeted. Using InMail, LinkedIn company-specific banner ads and the magazine wraps, traffic was generated to 600 individual URLs associated with EnergyTransparency.com where an executive could inspect energy consumption trends in their company and industry sector, along with customer brand preference information relevant to the company.

Overall, the campaign cost less than $1 million, and generated more than 10,000 site visits with average visit lasting more than 7 minutes on average—with 80 percent of opinion leaders visiting the site, and 30 percent of top executives targeted. InMails achieved at 13.37 percent open rate and 5.78 percent conversion rate. Business sales resulting from the campaign were not disclosed.

The judges welcomed seeing 1:1 communication, effective personalized used of social media, magazine wraps, banner ads, and successful delivery of brand interaction among C-suite executives—always a tough challenge. On the sustainability front, judges welcomed use of existing communications channels—magazines already subscribed to, social media networks where professional profiles already are present—to provide messaging, using little in the way of new production materials to convey relevant information. Overall, the campaign focused on energy use, so what better way to reach executives efficiently.

Global, integrated print & digital, b-to-b … congratulations to Vestas Wind Systems and Vertic!

Resources:
This Year’s DMA International ECHO Green Marketing Award Winner (see page 14):
http://dma.seqora.com/prod/Desktop/page.aspx?id=25&mode=SP&name=EchoAwards2012

Wanted: Data-Driven, Digital CMOs

There was a time, not so long ago, that the firm’s CMO basically acted as the chief brand steward, running a marketing department that focused on maintaining brand equity and making sure the company was sending out the right message to the masses. Data and analytics? They were usually scoffed at … That was the purview of the down-and-dirty world of the direct marketer, right? Direct marketers were the ones who obsessed over response rates, cost per order, lifetime value and so on.

There was a time, not so long ago, that the firm’s CMO basically acted as the chief brand steward, running a marketing department that focused on maintaining brand equity and making sure the company was sending out the right message to the masses. Data and analytics? They were usually scoffed at … That was the purview of the down-and-dirty world of the direct marketer, right? Direct marketers were the ones who obsessed over response rates, cost per order, lifetime value and so on.

Well, suffice it to say that those days are over—marketing in today’s multichannel environment is about much more than just cute creatives and killer copy. Today’s marketing is increasingly digital and data-centric. A recent article appearing in Ad Age explained that “real-time data-driven decisions, enabled by technology, have made the marketer’s job much more measureable and accountable.” Interestingly, the same article also points out that the average tenure of a CMO is a meager 28 months. No coincidence.

What it boils down to is that today’s CMO is expected, de rigueur, to be a pro when it comes to all things digital. We have two important trends to thank for this fact. The first one of these trends is the general transition to digital. Look, it’s no secret that over the past few years there’s been an incredible shift of marketing spend from traditional over to digital media. It’s the scale and speed of this transition that’s so breathtaking.

According to a June 2012 survey by RSW/U.S., 44 percent of marketers report that they are now spending at least half of their budgets on social and digital media. This represents a 42 percent increase from 2009 alone! And this is not the end of the process. I think it’s safe to say now that the proverbial tipping point has been reached—this trend will only accelerate in coming years.

Anyone who’s worked in the digital marketing arena knows that success in the space all really boils down to data: Impressions, clicks, conversions, opens—this is the vocabulary of the digital world. Well, guess what? Today’s CMO needs to have a deep understanding of these terms, what they mean and how the underlying technologies work—at least on a high level—and be generally comfortable playing in the digital space. Think about it: without a significant digital background, how on Earth can a CMO possibly be expected to run a marketing machine where at least half of the marketing dollars are being spent in the digital space? Not happening.

The other major trend is the inexorable fragmentation of the IT infrastructure within enterprise firms. Basically, what’s happening is that because technology has evolved radically over the past 10 years, it’s giving different stakeholders at companies the ability to purchase and use technology outside of their organization’s firewall, and often without IT’s involvement. Very often, in fact, IT is even without IT’s knowledge!

This is huge shift. Just a few short years ago, mind you, software was what you ran on your computer or on the company mainframe, and it was pretty much always purchased and managed by IT. Well, those days are most definitely over. What’s happened is that the emergence of the SaaS/Cloud model of software delivery has turned that world on its head.

Today, any marketer with a credit card can sign up for, say, a CRM tool or a marketing automation tool and be off to the races in seconds flat. Ask any marketer and they’ll explain how this has been a huge boon to their departments, liberating them forever from the clutches of IT.

Now, of course, a big reason for this excitement is the oftentimes frosty relationship between marketing and IT. Personality types side, in its essence this rocky relationship actually has a lot to do with conflicting mandates. It’s the IT department’s mandate to act as the stewards of the firm’s information and technology infrastructure. Essentially, it’s their job to keep internal systems running and make sure they’re secure. That’s about it. No, it’s not their job to build you a new landing page, or set up a new email campaign for this fall’s reactivation campaign.

Today’s marketing department, on the other hand, is much more focused on operations than anything else. Today marketing is about creating, testing and launching numerous marketing campaigns across various channels using different tools, and evaluating their performance using real-time analytics. And running an operationally focused marketing team requires the ability to build, dispatch and analyze lots of campaigns in rapid succession. Until recently, this heaped loads of pressure on the IT folks, who groaned under the strain. So you can see why marketers have cheered and embraced the emergence of Web-based SaaS marketing tools.

Okay, I got a little sidetracked there, so I’ll get back to the central point, which is that because marketing is rapidly becoming the de facto owners of their own IT infrastructure, this mean that they now control the technology itself and the data contained therein. It’s a big responsibility, requiring marketers to manage and safeguard this vital corporate infrastructure and information, taking on the dual roles of chief marketing technologist and data steward. But with this responsibility comes great power—to use these awesome tools and information to really, truly understand who customers and prospects are, and send out highly personalized and effective marketing campaigns with demonstrable ROI.

But evaluating performance in this environment means not only using new marketing tools and digging through mountains of data. Just as importantly, it also means understanding what it all means. In other words, just because you’re a CMO does not mean you don’t need to know how many opt-ins you have in your company database, or how many fans on Facebook.

And guess what? It’s hard to be comfortable with digital if you’ve never played in the space. But how many CMOs are also digital pros? Not too many. So not surprisingly, firms are finding that it’s incredibly difficult to find leaders with the hard-to-find combination of senior management leadership and digital marketing experience. Given this reality, it’s not too surprising to discover that many companies are running through CMOs in a conveyor belt-like fashion.

Do you know any data-driven digital pros with senior marketing leadership experience?? If so, bet your bottom dollar these executives will be cashing in big time in coming years.

—Rio

New Paper Recovery Data Shows Impact of Recession, Digital Media

New data from the American Forest & Paper Association regarding paper recovery rates in the United States has some good news—and not-so-good news—regarding U.S. recycling collection. As marketers, we need to pay close attention to these rates, and take active steps to support increased recovery, since such recovery can have positive impact on recycled paper supply and pricing, as well as other marketplace concerns regarding our print communications and paper packaging.

New data from the American Forest & Paper Association regarding paper recovery rates in the United States has some good news—and not-so-good news—regarding U.S. recycling collection. As marketers, we need to pay close attention to these rates, and take active steps to support increased recovery, since such recovery can have positive impact on recycled paper supply and pricing, as well as other marketplace concerns regarding our print communications and paper packaging.

The good news is that the paper business has continued to increase recovery rates for all types of paper, achieving a record 66.8-percent recovery for the nation [see the first image in the media player at right].

For printing and writing grades, recovery rates slipped from its 2009 recovery percentage peak of 61.0 percent, now registering a 56.8-percent recovery rate, but still ahead of the pre-recession recovery rate [see the second image in the media player at right].

In both the overall market for all grades combined, and the printing & writing grades market, the peak year for paper consumption (the bars on both of the preceding graphs) was pre-recession 2007, a high point we have yet to re-attain in both categories as our economy has returned to tepid growth.

However, by looking at just printing & writing grades consumption, the falloff from the 2007 peak, and the lack of recovery, is far more pronounced than in the paper market overall—fully a 23.7-percent drop from 2007 to 2011. This is certainly a sign that while the recession prompted a pullback, digital media has brought on a migration from print communications, and most certainly in postal mail. That data is supported by declining U.S. Postal Service First-Class Mail volume data, and near-minimal growth in Standard Mail.

Thus, the generally higher recovery rates are generated by higher recycling collection activity or perhaps a more expansive recovery infrastructure, but also by source reduction—there’s just less printing and writing papers being generated.

Certainly, the role of direct mail is changing in an increasingly mobile, digital age—and thankfully, we’re getting a good percentage of what we do consume recycled. We need to do better.

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The Adobe/Omniture Merger: What It All Means

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

The goal of the merger, according to Adobe CEO Shantanu Narayen, is to create a holistic way to develop creative content and measure the value of that content — be it video, web pages, mobile or social media — to “close the loop” in the content creation and content measurement worlds.

With optimization capabilities embedded in Adobe’s creation tools, designers, developers and online marketers will have an integrated workflow that’ll streamline the creation and delivery of content and applications, according to an Adobe press release. The optimization capabilities also will enable advertisers and advertising agencies, publishers, and e-tailers to realize greater ROI from their digital media investments, and improve their end users’ experiences.

While mergers happen every day, this one appears to be game-changing, at least according to the myriad of comments from vendors in the space that appeared in my inbox right after the announcement was made.

Russ Mann, CEO of Covario, said the merger is “a brilliant strategic move for Adobe, one that could change the rules of the game for digital media — from creation to measurement to monetization.”

He also offered specific examples about what the Adobe media world would be like. They include the following scenarios:
• Video developers and agencies will be able to build Adobe Flash creative with Omniture tracking codes implanted from the beginning, enabling them to track the views of creative across the web.
• Web design firms and e-commerce companies can create dynamic landing pages and rich internet ads via Adobe that have tracking and multivariate testing codes via Omniture. These codes will allow marketers to create pages and new forms of user-customized content.
• PDFs could be tracked, providing valuable metrics for the creators of such content.

Blaine Mathieu, chief marketing officer of Lyris — and former executive at Adobe Systems — said the acquisition demonstrates that the online marketing space is heating up.

“While the large enterprises that Adobe and Omniture serve will have the money and experience to understand the ROI of an integrated suite,” he said, “we believe this deal will also trigger marketers in midsized businesses to better understand the value of an integrated online marketing tool set.”

What do you think it all means? How will it affect your interactive marketing programs and strategy? Let us know by posting a comment here.