Welcome [] · 2013-09-24 · 10.58% Native, 4% 10.44% 88.62% 5.95% 5.42% Device Share of Website Traffic Traditional Tablet ... the AppNexus ad platform Merkle Storage for one client

1

Welcome

Wednesday, September 18, 2013

2

http://www.aig.com/home_3171_411330.html

http://www.cchs.com/web/guest

http://eastcentral.aaa.com/index.jsp

3

Executive CRM Exchange Mission

Our Mission: Create an

intimate leadership forum

where industry leaders can

gain perspective from each

other in the areas of

relationship and digital

marketing.

What is working?

What are the challenges?

What is next?

4

The Evolution

Customer Strategy as a Business

Strategy

Insurance & Wealth Management

Executive CRM Exchange 2010

Driving Profitable Growth in

Insurance and Wealth

Management

Insurance & Wealth Management


Connected CRM:

The Digital Marketing Value Chain

Financial Services & Insurance


The Adaptive Customer Enterprise Financial Services & Insurance


5

2010 – The Person Level Media Plan

2010

6

2012 – The Digital Marketing Value Chain

2012

7

2013 – The Platform Marketer and the Adaptive

Customer Enterprise

2013

8

Agenda

DAY 1 – Wednesday, Sept. 18 Time Track #1 Track #2

4:00 pm – 4:45 pm Opening Session: The Adaptive Customer Enterprise – John Lee, Will Bordelon, & Craig Dempster

4:45 pm – 5:45 pm Executive Keynote Presentation – Manish Bhatt & Michele Elrod. Moderated by Will Bordelon

6:00 pm – 10:00 pm Cocktails and Dinner | Pleasant Bay Terrace

DAY 2 – Thursday, Sept. 19

Time Track #1 Track #2

7:30am – 8:30am Breakfast | 28 Atlantic

8:30am – 8:45am Welcome Remarks

8:45am – 9:30am Facebook Keynote Presentation – Dhiraj Kumar

Module 1

9:30am – 10:30am Introducing the Digital Platform Marketer – John Lee

10:30am – 11:15am Facilitated Table Discussions

11:15am – 11:30am Networking Break

Module 2

11:30am – 12:15pm Platform Marketer Industry Expert Panel – Jana Friedman (Twitter), Dhiraj Kumar (Facebook), Glen

Reardon (Google), and Megan Pagliuca (Merkle). Moderated by John Lee

12:00pm – 12:45pm Networking Lunch

Module 3

12:45pm – 1:30pm The Adaptive Customer Enterprise Transformation – Will Bordelon

1:30pm – 2:15pm Facilitated Table Discussion

2:15pm – 2:45pm Closing Remarks

9

What you can expect from this event

The Merkle team to

“set the table” on the

sessions and facilitate

Highly interactive

discussions with your

peers and experts

To be challenged

10

What we need from you

Ask questions throughout

and be informal

Be engaged in the

discussions – your peers

came to hear from you

Be open about what is

and is not working – no

one here has this nailed (Trust us, we know all of you!)

Have fun and enjoy the

Wequassett!

11

Platform Marketing

Presented by Craig Dempster

12

Setting some context

I am going to focus today on the “what”… as in.. What’s going on

and how it’s creating an opportunity?

Tomorrow, we will focus more on the “how”…as in.. How do you

capitalize on the opportunity?

12

13

Agenda

• Macro Trends

• Observations and prognostication

• Introducing… “Platform Marketing”

• Addressability at scale

14

The Always

Addressable

Customer

And marketers are

responding by

And consumers

are changing

Mass consumer to

consumer engagement

Changing consumer

purchase behaviors

Shift in media

consumption patterns

Focusing on big data and

its ability to drive value

Embracing digital media

and channels to enhance

customer experience

Putting the customer at the

center of business strategy

Social networks

at scale

Macro-trends are changing the landscape

Yes, we have now entered the Age of the (Addressable)

Consumer

Consumer

Mobility

The digitization

of media and

channels

15

Migration of the consumer from offline to the

digital platforms

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

7.0——

6.5 —

6.0——

5.5 —

5.0——

4.5 —

4.0——

3.5 —

3.0——

2.5 —

2.0——

1.5 —

1.0 ——

0.5 —

2008-2013

Social media 0.1 to 1.1

Digital content 1.7 to 2.4

Consumer hours spent

per day on non-digital channels are decresing,

while use of digital channels

are steadily increasing

Hours

2008-2013

TV 3.8 to 3.1

Radio 1.6 to 1.4

Print 0.7 to 0.4

16

Social Media Growth

2006 2007 2008 2009 2010 2011 2012

12,000,000 50,000,000 100,000,000 350,000,000 600,000,000 800,000,000 1,000,000,000

1,000 750,000 5,000,000 75,000,000 145,000,000 300,000,000 500,250,000

8,000,000 15,000,000 33,000,000 50,000,000 75,000,000 135,000,000 200,000,000

600,000 2,000,000 4,300,000 8,000,000 11,100,000 50,000,000 60,000,000

0 170,000 1,000,000 2,000,000 7,000,000 38,000,000 86,000,000

0 0 0 0 0 90,000,000 400,000,000

0 0 0 0 10,000 11,700,000 25,000,000

CAGR 109.00 507.47 71.00 120.43 248.03 344.44 4,900.00

Number of social media users from 2006-2012

17

Social Proliferation

Q7F. When you are at a website that requires you to either create an account or gives you the option to log-

in using one of your social network, email, or online accounts, how often do you use the social login option?

52% have used

social login

50% of

all ecommerce sites will be

socially connected by 2015

18

0

1000

2000

3000

4000

5000

6000

Glo

bal

Users

(M

MM

)

Global Smartphone vs. Mobile Phone Users, 2013E

Smartphone Usage = Still Early Stage with Tremendous (3-4x) Upside

1.5B

Smartphone

Users

5B+ Mobile

Phone Users

Smartphone Mobile phone

Mobility Trends – Always connected

78.99%

10.58%

10.44%

88.62%

5.95% 5.42%

Device Share of Website Traffic

Traditional

Tablet

Smartphone

Q1 2012 Q1 2013

Time Spent on iOS & Android Connected Devices

Games, 32%

Facebook, 18%

Entertainment, 8%

Utility, 8%

Social Networking,

6%

News, 2%

Productivity, 2%

Other, 6%

Safari, 12%

Android Native, 4%

Opera Mini, 2%

Source: Flurry Analytics, comScore, NetMarketShare

BROWSER (20%)

APP (80%)

0

400

800

1200

1600

2000

2007E 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E

Inte

rnet

Users

(M

M)

Global Mobile vs. Desktop Internet User Projection, 2007 – 2015E

Mobile Internet Users

Desktop Internet Users

Mobile Users > Desktop Internet Users Within 5 Years

19

The Rapidly Growing Digital Advertising Market

Current and projected market share from 2011-2015

Internet

Outdoor

Cinema

Radio

Television

Magazines

Newspapers

45%

2011 2015

20.3% 15.9%

9.4%

7.3%

39.9%

40.0%

7.1%

6.6%

6.7%

6.3%

16.1%

23.4%

0.5

% 0.6%

20

Advertising Budgets Are Shifting

Mobile Advertising

Increase Stay about the same Decrease Don’t use

69% 20%

70% 29%

64% 24%

23% 50%

19% 48%

13% 20%

Social Media Advertising

Video Advertising

Rich Media Advertising

Standard Display Advertising

Connected TV / IPTV

Survey on the amount marketers will increase/decrease

their budgeting in these forms of advertisement

21

Digitization is creating massive amounts of data – The

Big Data Effect!

“There were 5 exabytes (5 million terabytes) of information created

between the dawn of civilization through 2003 but that much

information is now created every 2 days, and the pace is increasing.”

- Eric Schmidt

247 billion e-mail messages are

sent each day

29.8 billion ads served by

Google each day

30 billion pieces of content

shared on Facebook

every day

400,000 bid requests per

second processed on

the AppNexus ad

platform

Merkle manages over

3 petabytes of marketing data,

increasing by approximately

10TB/month”

Storage for one client includes

8,824,526,619 page views (to

be exact) and over 24 terabytes

in a single database

22

The big trends – where this is all heading

Digital media

convergence –

digital media has

taken on forms in

custom content,

video, social, and

mobile , search

Known individual

level targeting

reaches massive

scale as the core of

the strategy

Mass adoption of

social log-in will reach

huge scale and open

massive addressability

opportunities

Cross device

targeting

maturity will

accelerate –

Google and

Twitter to lead

the way (Apple,

smart TV)

1st party audience expansion and extension

creates massive addressable scale opportunity

Commerce - Data driven inventory will expand dramtically

as large commerce expand business model to monetize first

party data assets – eBay, Amazon

Publisher - Google and Facebook off platform extension -

stack integration will create massive addressable audience

scale (Atlas and DART acquisitions used to drive ubiquity

and integration of advertiser, social, and paid media

targeting and reach

Advertisers will have to deal

with complexity of the closed

media platforms as large

players such as Google and

Facebook create “walled data

gardens” through their stack

acquisitions

Search will be

the next big

addressable

platform

Programmatic

media buying

explodes

Unique content

will drive growth

of video-on-

demand which

opens yet another

big addressable

platform at scale

(Netflix – Orange is

the New Black)

The info-mediary

starts to take shape

- Consumer influence

into their own

experience – the

value exchange

23

These trends and predictions are creating the

―Platform Marketing‖ opportunity

In an adaptive

marketing

organization

Causing the

need for the

platform

marketer

Creating

addressability

at scale

The growth and

proliferation

of digital

platforms

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3rd Party Audience Platforms 1st Party Audience Platforms

Audience Platforms

Your web properties

What is an audience platform?

Any platform that aggregates audiences for the primary

purpose of delivering marketing/advertising

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=uJ53rG2n1al2PM&tbnid=1a6NYMuLZhX0UM:&ved=0CAgQjRwwAA&url=https://foursquare.com/about/logos&ei=DsYSUv7sAtev4AP35YDQBA&psig=AFQjCNGJ6LZUeNh4TM6Nes0YAEFJiHGbqg&ust=1377048462109245

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=z3bw6bDfvUIzAM&tbnid=o0Q1tsWShArWaM:&ved=0CAgQjRwwAA&url=http://www.ship.edu/womens_center/&ei=d8YSUu-HDtbJ4AOVy4CIAw&psig=AFQjCNGV_qip7L7gSGe7IbpKxWpW1xBhdg&ust=1377048567273582

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=MSQ3OjKUKAQdjM&tbnid=Ry7EL33kmGVngM:&ved=0CAgQjRwwAA&url=http://www.toxel.com/design/2010/06/09/24-cool-logos-with-hidden-symbols/&ei=CMoSUuFW4uHgA7_HgPgP&psig=AFQjCNEAGO3jgkX9mFVbNukR9X_4kuNcDQ&ust=1377049480066726

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Audiences

aggregates by

scaling niche

content

Audience

aggregated by

audience data

Audiences

aggregated by

content

Evolving Platform Marketplace

Differentiation created

by Media Skills Differentiation Created

by Optimization

Differentiation Created

by Technology

Audience

aggregated

using known

relationships

Differentiation Created

by Data Integration and

Analytics

1995-2005 2005-2009 2009-2012 2013+

26

Growth &

Proliferation of

the Platforms

Platform Expansion

Audience behavior and scale

Platform proliferation &

innovation

Big Data

New investment in technology

“Silicon Valley effect”

27

Innovation in the platforms is picking up significant

speed and volume

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

July 1941

The first ever television ad,

a ten-second Bulova watch

spot, airs prior to a Brooklyn

Dodgers and Philadelphia

Phillies game.

Sept

1998

1994

28


speed and volume

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

1994

The first display ad from

AT&T

Sept

1998

1994

29


speed and volume

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

September 1998

Google launches service

Sept

1998

1994

30


speed and volume

March 2012

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

31


speed and volume

June 2012

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

32


speed and volume

October 2012

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

33


speed and volume

May 3, 2013

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

34


speed and volume

July 11, 2013

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

35


speed and volume

August 9, 2013

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

36


speed and volume

August 22, 2013

July

1941

March

2012

June

2012

October

2012

May 3

2013

July 11

2013

August 9

2013

August 22

2013

Sept

1998

1994

37

Publishers are leveraging first party data and creating

audience extension (networks) that allow that first

party data targeting to scale

38

Publishers are leveraging first party data and creating

audience extension (networks) that allow that first

party data targeting to scale

―Reach Amazon customers on Amazon owned

and operated sites and on other high quality

websites with Amazon Advertising Platform.

Using the same personalization engine that drives

advertising on Amazon.com, AAP offers more

options to extend the reach of your campaign,

without compromising the quality of your

audience‖

39

Targeting &

Personalization

• Research

• Persona

• Segmentation

• Retargeting

• Individual level activity,

next best product,

customer value

Measurement • Impressions vs.

Calls

• Last click

• Digital attribution

• Media Mix Modeling

• Accurately assigning

“partial credit” cross-

media and channels

Channels &

Media

What’s the opportunity? Data generated by digitization is

driving addressability across media at the individual level

Personas Known Anonymous

Individual

40

The Addressability Spectrum

Anonymous Partially Identified Identified Identification:

Unknown Some Knowledge Well Known Knowledge:

Defining Addressability

Definition: The degree to which you can use customer (anonymous or identified) data

to increase the targetability and relevance of marketing impressions and experiences

41

Contextual Real-Time Bid

(RTB)

CRM Targeted

RTB How many people visit site, and

their profile

Cookie & Third Party data on

unknown individuals

Addition of data repository including

all media and CRM data

Targeting • Based on inferred match

between audience &

publisher

• Anonymous user behaviors

• Retargeting

• Anonymous user behaviors

tied to CRM data

• 1st party data targeting

(name and address)

Optimization • Publisher performance • Anonymous cookie data Performance by customer

• Segment

• Value

Place

Anonymous and Individual

CRM Data Driven

Place

Anonymous Individual

Place Level of insight

Digital & Social Media Evolution 2008 - 2013

Platforms &

Format

• PC

• Banners

• PC

• Display & Video

• Channel specific

• Integration across device

• PC

• Mobile

• Tablet

The evolution of digital media in recent years is a good

example

42

The evolution of digital media in recent years is a good

example

Universal Platform Differentiated by

Device

Integrated Media and

Site Targeting

How many people are searching

and for what terminology

Increased options controlled by the

search engines for delivery

Use of Remarketing programs in

search and display to customize

Targeting • Based on exact keyword

search behavior with not

personalization

• Anonymous by device type

and carrier

• Geography, day of week and

time functions

• Audience profile data from

prior site visitation

• Unique experiences based on

user profiles

Optimization • Match type and keyword • Extended match types

• Device Targeting for Mobile

• Location specific ads and

costs

Performance by customer

• Segment

• Value

• Intent

Keyword

Audience Driven

Keyword

Location/Device/Time

Keyword Level of insight

Search Evolution

Formats • Pure text only • Site Links

• Video Ads

• Image/Logo ads

• Click to Call

• Video

• Form Extensions

• Product Price Ads

• Maps/Location Extensions

Location/Device/Time

43

Some of these platforms are creating addressability

beyond the domain of their own native platforms

This has not happened yet, but the connections

can be made at scale

44

Twitter handle

Cookie 3rd party

ID address

Digital set top ID

Addressability Identifiers are Proliferating at a Rapid

Pace

Just as DM / CRM Marketers created value exchanges with consumers to get this data.

Platform marketers need to create data capture strategies across a wide range of

identities.

Imagine only having 5% coverage of email addresses on your customer file!

Mailing

address

IB ID

Pinterest ID

GooglePlus ID

Device ID

70’s 80’s 90’s Today

12 Main Street

Philadelphia, PA

Email Phone

number

00’s

617-555-0728

12 Main Street

Philadelphia, PA 617-555-0728

12 Main Street

Philadelphia, PA

[email protected]

617-555-0728

12 Main Street

Philadelphia, PA

[email protected]

#JohnnyDoe

01100100010

0110001 //asdohs.hhd.net 617-555-0728

12 Main Street

Philadelphia, PA

[email protected]

#JohnnyDoe

01100100010

0110001

//asdohs.hhd.net

[email protected]

Pinterest: jdoe

JD’s iphone

011001000

100110001

01100100010

0110001

//asdohsd.asiudhscns/html

45

The consumer clicks on

an online ad, which

conveys their city through

the IP address.




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


Interest in

product

Location

46




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


The consumer submits

their email address, which

helps point the way to

data about them that is

elsewhere online.

Interest in

product

Location

Email

Public online activity

47




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


Highest value

The consumer logs into

Facebook, providing an

exact name and identity.

Interest in

product

Location

Email

Public online activity

Real

name

48




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


The consumer reads a story

on a news site, which logs

their IP address.

Interest in

topic

Region

49




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


The consumer’s IP is cross-

referenced with publicly available

data, showing the general

location where they live.

Interest in

topic

Region

Specific

location

50




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


High value

Later, the same IP is logged at a

shopping site. Linking the news story,

location, and retailer allows a targeted

ad to be served to the consumer.

Interest in

topic

Region

Specific

location

Interest in

specific

product

51




Le

ve

l o

f id

en

tifica

tio

n

An

on

ym

ous

Pa

rtia

l ID

F

ull

ID

Low Medium High

Level of knowledge


Valuable

Low Value

Most

Valuable

Valuable

Ad

interest

Location

Ad interest

Location

Email

Additional online data

Ad interest

Location

Email

Additional online data

Name

Interest in

topic

Region

Interest in

topic

Region Specific

location

Interest in

topic

Region

Specific

location

Interest in

specific product

52

• Massive amounts of budgets…in this room, are moving from television

and DM to these digital platforms. Are you leading, chasing or just

getting up to speed?

• Competitive advantage will live in these digital platforms, just the way

others in your industry created differentiation in mass media branding

and the digital channel.

• Don’t get left behind!

Summary

Documents

Welcome [] · 2013-09-24 · 10.58% Native, 4% 10.44% 88.62% 5.95% 5.42% Device Share of Website Traffic Traditional Tablet ... the AppNexus ad platform Merkle Storage for one client