Melissa Campanelli’s The View From Here: What the IBM/Coremetrics Deal Means for Marketers

Arguably the biggest news of the week in the online marketing world was the announcement that IBM, the granddaddy of technology companies, will acquire Coremetrics, a leader in web analytics software.

Arguably the biggest news of the week in the online marketing world was the announcement that IBM, the granddaddy of technology companies, will acquire Coremetrics, a leader in web analytics software.

The acquisition will enable Big Blue to help its customers gain intelligence into social networks and online media sources through a cloud-based delivery model. Then, they can incorporate this insight into their processes to create smarter, more effective marketing campaigns.

“With this acquisition, we are extending our capabilities to give clients greater insight about customer behavior and sentiment about products and services, and give true foresight into their future buying patterns,” said Craig Hayman, general manager, IBM WebSphere, in a press release.

This isn’t the first time a large technology company catering to enterprises has purchsed a web analytic company in an effort to expand their online marketing offerings. A few years ago, Google bought Urchin, for example. And last year Adobe bought Omniture.

But what does this all mean for marketers? For one, it validates the growing importance of digital channels and online marketing.

“Less than a year after the acquisition of Omniture by Adobe, IBM’s announcement today represents overwhelming testimony to the value of online marketing technology as a core piece of an enterprise strategy,” said Alex Yoder, CEO of Webtrends, a Coremtrics competitor. “In today’s world, the growing importance of data-driven decision making is not a luxury, but a minimum requirement to competing in today’s markets. Businesses, governments and nonprofits all realize that facts and insight let them point their innovation and resources in the proper direction.”

While Yoder went on to say that Webtrends leads the market in open standards and detailed customer information — and that his company has seen a 51 percent increase in new business bookings year over year — he added that it will be interesting to see how the acquisition “ultimately impacts enterprises looking to understand data across the multiple digital channels that comprise today’s marketing landscape.”

Responsys, a partner of Coremetrics, said in a prepared statement that the web analytics firm has taken an innovative approach to managing and leveraging the vast amounts of online customer data that today’s companies generate, and that “IBM, as the largest business technology company in the world, is sending a strong message that these capabilities must be considered part of the core ‘stack’ required to be successful in an increasingly digital world.”

Responsys went on to say that this acquisition is “raising the bar” for the industry by helping make advanced online data and marketing solutions a central and established aspect of running a business.

What do you think about the acquisition? Let me know by posting a comment below.

Craig Greenfield’s Redefining Performance Marketing: Holding Performance Marketing Campaigns Accountable

Facebook recently passed Google to become the most visited website in the U.S., according to Hitwise. This achievement from the social networking giant reminds marketers not only of the growing importance of social media, and Facebook in particular, but of choosing the right approach and success measurement plan.

Facebook recently passed Google as the most visited website in the U.S., according to Hitwise. This achievement from the social networking giant reminds marketers not only of the growing importance of social media, and Facebook in particular, but of choosing the right approach and success measurement plan.

Performance media offers marketers several solid choices to connect with target audiences, but marketers should clearly define campaign goals up front to ensure they choose the right campaign tactics and success measurement scheme. With concrete goals in place, marketers can consider incorporating fan pages, ads and applications into their campaigns and create plans to observe and measure engagement, conversions, connections and opinions (ECCO) to quantify success.

Facebook pages
Facebook pages offer free, simple ways to update people about promotions, events, new products and more. Marketers should select a memorable Facebook vanity URL for their pages, and promote them on their brands’ native sites, blogs and other promotional materials since consumers need to opt in or click the “Like” button on the page to engage with the brand.

Search engines rank social site pages high for branded searches, and marketers can use them to own more of the search engine results page since search engines only display two results from marketers’ native sites.

Applications
Applications foster viral sharing, encourage brand interaction and generate leads through “tell your friends” and “add to profile” buttons. Papa John’s, for example, uses sweepstakes apps to capture names and email addresses while staying top of mind with consumers. Tools exist to track user interaction with applications.

Social ads
Performance media ads are text- and image-based ads that appear in the right sidebars of Facebook users’ profile pages. Marketers trigger these cost-per-click or cost-per-impression ads based on user attributes like gender, geography, age and interests. These powerful microtargeting capabilities enable marketers to effectively target only the most suitable of Facebook’s more than 400 million users.

ECCO success tracking

A performance marketing campaign’s success hinges on whether, and to what extent, it achieved its goals. ECCO offers a concrete approach to measuring and quantifying success. It can be adapted to a specific campaign’s goals and tactics to establish clearly defined success metrics and milestones, but the approach always incorporates some combination of engagement, conversion, connection and opinion measurement. These terms are explained in more detail in the following list:

  • Engagement. What immediate reaction or interaction was created? Often measures clickthroughs, rollovers, interaction rates, video streams, time spent with ads, games played, etc.
  • Conversions. Following engagement, what actions did the campaign spur? Commonly consists of sales/orders, leads/emails, downloads, sweeps entries and other post-click activity.
  • Connections. How well did the campaign reach its target? What impressions were left? Measures reach, frequency, cross-site duplication, impressions delivered, site visits and more.
  • Opinions. How was the campaign perceived? What reactions were elicited? Can include brand studies, polls/surveys, ad recall, brand awareness, purchase intent, among other things.

Marketers and their partners must assign the right values and indicators to each ECCO element, but the framework provides an adaptable approach that can support a wide range of performance media campaigns and other social media programs. Whether just getting started or devising the next in a long line of effective performance marketing campaigns, marketers can lean on ECCO to hold Facebook campaigns accountable.