Marketing Dividends – Is it Time to Re-evaluate Digital?

The promise of digital targeting has had marketers salivating for years. We would be able to identify, reach, engage and convert consumers one-to-one at scale thanks to technology. Better yet, with mobile devices, we could bring an offer to a consumer who was physically close to our retail outlet thanks to big data, mapping and location services.

Accordingly, substantial investments have been made in a wide variety of technologies from CRM and data mining, to automation, analysis and beyond. In fact, Scott Brinker’s infographic on the landscape of marketing technology (2016) suggests that there were almost 4000 marketing technology solutions vying for your attention and purchase. With so many choices, it’s hardly surprising that marketers wonder where to start with the MarTech stack.

But Byron Sharp, Professor of Marketing Science at the University of South Australia says that the promise of digital marketing is unfulfilled. Or perhaps, we have over stated the role of digital at the expense of brand. This video segment by the Australian Association of National Advertisers (AANA) touches on these topics, raising interesting challenges for us all.

Now, there is plenty that I could argue with. There is a huge assumption that analogue marketing metrics are/were valid, and also that marketers are not following through on data, analytics and measurement of business value. But these are quibbles – because the most interesting aspect of this interview is the refocusing of marketing towards strategy.

In many ways, the pursuit of digital marketing and technology has seen us become reliant on tactics masquerading as strategy. We put some technology in place and think that the strategy will magically be enabled.

But this is never the case. As Byron reminds us, “We are in a battle for attention – for physical and mental availability … people [consumers] just don’t think of you enough”. Segmentation, data and technology alone won’t solve that problem – only a tightly threaded strategy and approach to execution will. And that means doubling down on your marketing skills. So don’t just re-evaluate digital – re-evaluate your team and yourself.

Sleeping Giants Take on Fake News and Brands – Is Your Brand Ready?

We have all heard about the vast network of fake news sites that spread disinformation during the recent US Presidential Campaign. These sites use the same clickbait strategies that propelled sites like Upworthy to the top of the digital media scrapheap – inflammatory headlines, sensationalist stories and catchy hooks that tempt you to click just once more.
What Upworthy’s content strategy revealed was a unique combination of skilled teams, data and insights would help the organisation create content that was “viral ready”. As Joseph Lichterman explained in this Nieman Lab article:

Using the user data it’s collected, Upworthy found that elements like humor and a story structure that built in suspense would draw in readers and keep them on the page and better engaged.

This meant that even to tell a story with real information and verifiable facts, the goal for Upworthy was to grab and own the attention of readers as a priority, delivering news and information as a lower priority. As Amy O’Leary, Upworthy’s Editorial Director explained, “If I were to tell you, ‘Hey, I’ve got a 5,000-word piece on fast-food workers’ wages,’ very few people would be excited about that”. Instead the story would focus on building rapport with the audience, engaging through an imaginative framework of shared experience and emotionally engaging writing and opening up into the ethical challenges that come with enjoying something you eat while knowing the background and facts of its production. As O’Leary suggests, “I think we’re reaching deeper into people, because the approach is one of openness and not judgment”.

It’s worth reading more of the article to learn how Upworthy used data to drive its curation process – but what is fascinating (and concerning) is the way that this model has been co-opted by the fake news movement. By ignoring facts as the basis of news, these fake news sites have effectively defined a whole new genre of content catering to our own sense of digital isolation and disconnectedness. If we have learned anything from the last decade in this Age of Conversation, it is that when we (as consumers) come face-to-face with the vast anonymity of the internet, we rapidly seek our tribe – and we do so through the media at our fingertips – visuals, text, keywords. We seek the connection via keyword and conversation – and naturally enough find ourselves in an echo chamber.

Those of us who work with digital technology and audience strategy have – to be honest – been taking advantage of this approach for years. I often say that both love and hate Facebook and its targeting for I know how useful and powerful it is as a marketer, but equally how invasive and manipulative it is as a consumer. So much so that I consciously manage my engagement and sharing on Facebook and limit what I click on etc. But I also know that even my limited engagement there – and on every other digital channel – leaves enough breadcrumbs to be valuable to the brands and businesses seeking my attention. These days my choice to click comes down to context and location.

Because I know that every click rewards not only the brand but the advertiser too.

With the massive rise in programmatic advertising over the last two or three years, most advertisers and planners are unlikely to even know where their branded advertising will appear. It could appear on alt-right websites (the term used to mask white supremicist oriented websites), pornographic websites or even across the dark web. The powerful retargeting tools now in the hands of marketers and their trained algorithms means that ads that you first see on a mainstream website will follow you wherever you may go online. And while the web has some amazing resources, it also has some deep and nasty crevices.

So what do you do when your brand starts advertising in this murky digital world?
Imagine, for example, that you visited a fake news site with outrageous headlines and you did so out of curiosity. What kind of advertiser, you wonder, would support a platform that knowingly creates fake news and information that demonises your own audiences (the people who are your customers and supporters). This NY Times article explains such a situation:

One day in late November, an earth and environmental science professor named Nathan Phillips visited Breitbart News for the first time. Mr. Phillips had heard about the hateful headlines on the site — like “Birth Control Makes Women Unattractive and Crazy” — and wondered what kind of companies would support such messages with their ad dollars. When he clicked on the site, he was shocked to discover ads for universities, including one for the graduate school where he’d received his own degree — Duke University’s Nicholas School of the Environment. “That was a punch in the stomach,” he said.

Rather than to let this slide, the professor sent a tweet to his Duke questioning its affiliation with a “sexist and racist” site. Eventually this was sorted, as the NY Times revealed.
But in the background, a movement known as “Sleeping Giants” was arising to combat this kind of fake news. This shared Twitter account and network of followers are using a similar approach – naming and shaming the brands that support these fake news networks. The Sleeping Giants publish a list of brands who have discontinued their support for fake news sites – starting with the Breitbart network. But we can expect more of this kind of activity in the coming months and years. The question for brands in all this – do you know where and who your ad dollars go to? And how will you respond when you find your brand in places you don’t expect or want?

The best marketing investment you’ll make all year

In conversation after conversation with marketing directors and CMOs I keep reaching the same conclusion: our efforts at skill building are woefully inadequate to keep up with the pace of customer change.

There are two factors at play here:

  1. Senior marketers remain risk averse so pursue conservative strategies
  2. Junior marketers willing to work with and adapt new approaches are hobbled by the strategic frameworks and their skills degrade.

Unfortunately for marketers, our customers are more agile than ever, readily adopting and consuming new models of engagement, interaction and purchase. Just think about retail disruption and the way new entrants like Zara have been able to swan into our landmark locations and capture new and existing markets while the dinosaurs of Australian retail cut costs, flounder online and bark about GST and an unfair playing field.

The same can be said of media. Platforms like Junkee and the Guardian have flown in the face of a struggling media sector, out performing traditional mastheads right at the time that it seemed that the Media market was imploding.

When you take your eye off the customer ball, you open the door of opportunity to those with a more nimble business model.

In many ways, customers are like water – they follow the path of least resistance, and the simple fact is, our outmoded channel, contact and conversion paths are resolutely locked in a bygone era circa 2005.

On the positive side, there’s never been a better time to invest in both marketing and marketing skills – for both are the engines of innovation and growth in a customer-centric world.

Let’s see what this might mean.

Marketing is digitally determined but strategy is still king
If budget (and privacy) was no option, we could conceivably track, measure and optimise every customer interaction. But would this quantifiable improve our marketing? Would it make our customers more likely to buy, buy more often, or recommend us?

One of my favourite sayings is “Just because we can doesn’t mean we should”. And this applies now more than ever. While digital has transformed the work, methods and metrics of marketers, choosing what to do and when should not always be ceded to algorithms. Strategy is a vital part of your brand and its experience and marketers should be make use of the digital domain to inform decisions, not make them.

Use social signals and analytics to inform strategy
While the term “big data” is often heralded as the answer to every marketer’s dream, it’s often surprising how well we can use “small data” to radically transform our customers experience. At various stages of the buying journey, our customers will often consciously or inadvertently reveal their intentions. They may tweet about an issue or interest in a new product. They may share interesting new offers that appear in their Facebook timeline. Or they may even photograph and geotag a product they see in a shop or online using Instagram.

Moreover, they may also tag – and by tag, I mean recommend, a product to a friend. This could be a simple tag where a friend is notified by name or ID. Or it could vine with a warm recommendation, like “you’ll love this, Gavin”.

These social signals may be too inconsequential to warrant direct engagement, but at scale, could denote the first stages of a trend or an opportunity to “go viral”. The only way to know this is happening is to incorporate social analytics into your marketing business process. In doing so, it will bring you one step closer to your customer.

Automating for frictionless brand experience
Social analytics also provide vital insight into your customers’ journey. With even a small amount of journey mapping and data analysis, you’ll soon learn of the various friction points across various touch points. And where those friction points exist, marketing automation can be used to overcome or avoid that friction.

It could be as simple as sending an in-app message, email or text message to pre-empt a problem or offer a workaround. It could be that an abandoned online shopping cart triggers a follow up from your call centre. There are many scenarios, but all should be designed to provide a value add to your customer.

The common thread linking your brand and your customer is bound up in experience. Our increasing use of technology takes us part of the way, but the foundation of strategy, creativity and tech know-how that must be in the DNA of the modern marketer is what allows it to flourish. And that means investing, nurturing and growing your team and their capabilities. In fact, skills may be the best marketing investment you’ll make all year.

The Top 5 Marketing Technology Categories in 2016

Each year, Scott Brinker goes through the laborious process of identifying and categorising thousands of technologies for his Marketing Technology Landscape supergraphic. As in past years, there are hundreds of new entrants – this year there are 3874 solutions identified on a single page. This means, for the marketing technologist (and that really means everyone in marketing these days), that we would need to review 75 of these each week for a year in order to “be across” this burgeoning technology field.

For those of us who are time poor, however, let’s just take a look at the most populous categories of marketing technology:

  1. Sales Automation, Enablement & Intelligence (220)
  2. Social Media Marketing & Monitoring (186)
  3. Display & Programmatic Advertising (180)
  4. Marketing Automation & Campaign/Lead Management (161)
  5. Content Marketing (160).

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Marketing Tech Priority 1: Cover the bases

There’s no surprise that sales automation, enablement and intelligence is at the top of the list in terms of sheer number of vendors. Not only is this a multi-billion market – with Gartner predicting the market for CRM to reach over $23 billion in 2017, there is still significant upside on market opportunity. While Salesforce, SAP, Oracle and Microsoft lay claim to around 50% of the market for CRM alone, Gartner predicts that we won’t reach 80% saturation until 2025. This is still some years away, meaning that fast moving marketing technology companies (especially SaaS oriented) can lay claim to a significant market.

In the sales enablement and intelligence/analytics space, there is even more opportunity. These areas have been slower to mature and the technology has taken time to prove its power. This is all coming together now with increases in big data computing power and availability of enterprise grade cloud services. We should expect to see more movement in this area next year as growth and capability ramp up.

While I have never been a fan of allowing technology to drive our marketing strategy, the shift to digital has now become almost total. Marketing technology now has the power to track, measure and report on almost every touchpoint (whether there is ROI in the collection/use of that data/information is another thing). If we are not using these technologies to our advantage, you can bet that your competitors are.

This means, as marketers, we need to ensure we are covering the bases in at least two or three of the top five category areas. We need to double down on our sales automation, enablement and intelligence in a couple of areas:

  • Implement out-of-the-box capability: Even a basic CRM is better than no CRM. Seriously, it’s time to ditch the spreadsheets.
  • Use the functionality available: Almost every technology investment is underutilised. We need to get serious about our use of technology and move beyond the basic functionality.
  • Invest in skills: Fundamentally, this means training our marketing teams. Don’t assume that they know how to “do social” because they have a Twitter following. Make sure that your marketing skilling programs has a “business” not “consumption” focus.

Marketing Tech Priority 2: Double down on social and content marketing

While social media has been around for some years now, and most marketers have significant experience in running and integrating campaigns, we are still in the earliest stages in terms of business value and outcomes. We have seen that traditional media channels are collapsing, but we thought that the “digital doppelganger” replacements like banner ads and search engine marketing were going to serve as a valid replacement. This is not the case – just think about 0.06% CTRs that we are seeing for display advertising.

The reality is, that we need to innovate our approaches. We need to double down on social (category 2) and content marketing (category 5). We have had significant exposure to these areas in the last couple of years, and the technology companies are starting to better understand the needs of brands and marketers. Expect to see innovation in this space. More vendors. More cool technologies.

Marketing Tech Priority 3: Marketing automation is a no-brainer

We all want better quality leads, happier customers and more revenue, right? As we reach scale – with CRM in place and a good understanding of our customer journeys, we can start to bring technology to bear. This doesn’t mean that we are automating our marketing teams out of existence. It means that we are doubling down on customer experience – using our creative teams, agencies and strategists to deliver compelling experience that surprise and delight our customers (remember when we liked to do that?).

For those marketing teams who have not yet invested in marketing automation, perhaps 2016 is the year that you did. But beware, there are 161 vendors in that space. You’ll need to get started now, or 2017 will be with you before you’ve scratched the surface.

Download the supergraphic PDF here.

For Many B2B Marketers, It’s Time to Set the Foundations

For all the how-to guides, blog posts on best practices, tips and tricks, there is a simple reality to modern marketing that we often overlook. In our rush to use the technology, spend our budget and brief our agencies, we forget that good marketing is established on firm foundations.

A recent study by B2B International found that the top business challenges relate to growth:

  • 62% of marketers are focusing on growth
  • 59% of marketers are driving / needing innovation.

But in the area of out performing the competition, there are two significant weaknesses:

  • Sophisticated segmentation
  • Unique selling proposition.

In the research, on 43% of respondents indicated that they were using a sophisticated approach to segmentation. This means that almost 60% are leaving the door open to their competitors who double down on segmentation, audience analysis and journey mapping.

Furthermore, B2B marketers are rating their USP as a weak 6.3 out of 10.

Yet on the surface, all these things are under the immediate control of the B2B marketer.  Growth and innovation have tactical and strategic elements and can be tackled through short and medium term activities (yes, this is where those blog posts and tips and tricks can come in handy). Segmentation and analytics is a burgeoning field, and while skilled practitioners may be hard to find, they do exist. And there are great sources of training, conferences and even courses available in convenient online formats.

Messaging and the strengthening of your value proposition can be hard work – but again – there are agencies who can help, freelancers and brilliant techniques that can help you land on a compelling and differentiated messaging architecture.

But the data in this report makes me wonder whether we are looking at the right things. Are we valuing the right things. And are we looking for answers everywhere that we should not? I am convinced that the best marketing investment we can make is in our own skills. And that we should seek out a deep appreciation and understanding of the foundations of modern marketing, get back to basics and make our customers delightfully happy.

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