Opportunity's Knocking And Marketers Are Not Answering

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"Someone's knocking at the door, somebody's ringing the bell, someone's knocking at the door, somebody's ringing the bell, do me a favor, open the door and let 'em in."

Being the pop culture savant that I am, the first thing I thought of when I read the headline "Global Study Shows Marketers Missing Digital Opportunity" was the opening lines to the Wings' song "Let 'Em In." See in addition to being a marketing, advertising and branding fanatic, I am also one prone to invoke and evoke otherwise trivial tidbits into my everyday lexicon.

I readily admit I am far from normal, whatever normal is these days. But hey, that's just me.

The aforementioned headline is from a press release I read on businesswire.com and was in reference to the results of a global study, The State of Online Advertising, conducted by Adobe. As I began to read the release I saw a quote which was highlighted that reaffirmed my inner channeling of Mr. McCartney.

It was from Adobe CMO Ann Lewnes and it went something like this:

“Digital marketing has created a remarkable opportunity, but it comes with higher expectations from consumers. They expect a story tailored specially for them, a level of trust and transparency with the brands they do business with and, most importantly, a great experience. Brands delivering anything less will ultimately be ignored."

Consumers are the ones knocking at the door and Mr. & Mrs. Online Digital Marketer are not answering the door.

Why?

Well in the first place, part of the answer lies in Ms. Lewnes quote. "They expect a story tailored specially for them..."

The word "expect" alone is powerful insomuch as no longer do consumers hope for a personalized experience, they expect it - they demand it. And Ms. Lewnes went on to say "We now have the technology and know-how to target relevant and personalized marketing messaging and media to our customers. Shame on us, if we don’t deliver on that.”

Shame, indeed.

Looking at Ms. Lewnes quote in its entirety tells me that, more than anything else, consumers want a relationship with brands. And with that relationship is an expectation that said brand will maintain "a level of trust and transparency" at all times. Else, as she puts, risk being ignored.

The Effect Or Lack Thereof Of Online Advertising

From the Adobe study:

As you can see from the chart, there is quite the prevailing thought among consumers as to the effectiveness of online advertising and in particular web banner ads. The gap is very wide in the US and Europe when it comes to how effective consumers view online and banner advertising compared to what the marketers entrusted to create them believe.

David C. Edelman, global co-leader, Digital Marketing and Sales Practice, McKinsey & Company didn't pull any punches in talking about banner advertising and it's impact on consumers saying:

“Banners have brought much of the worst characteristics of advertising – being intrusive and manipulative, catching one's eye with hyperbole, and using surreptitiously-captured information – into the digital space. Consumers realize they are now in control and won't accept it."

You tell em' David. Consumers are driving the bus Mr. Kramden (another trivial reference) and marketers need to realize they're along for the ride.  Oh marketers can and should reference points of interest along the route, AKA content, but make no mistake about it - the driver will decide when to stop and smell the proverbial roses.

Ok, enough metaphors.

A Matter Of Trust

No, I won't reference the Billy Joel song of the same name, but I will reference this, also from the Adobe study:

Notice a trend?

Consumers are skewed toward the left side of the chart which is home to the non-digital/traditional world whereas marketers place more value than consumers do on the digital side of the ledger.

Could the reason consumers do not trust digital - websites, blogs, social media - be because of the content they are reading and ingesting? Could this content simply be not very good? Not relevant? Too salesy?

Nah.

No brand would ever do that, right? #sarcasm

You Are So Annoying

Ah to annoy. Something my wife tells me I do to her all the time.

But I digress.

In the world of marketing and advertising, annoy is most definitely a four-letter word for we surely do not want to annoy consumers.

As per the study, here's the most annoying marketing and advertising methods according to consumers: (in descending order):

• Phone calls from marketers
• Pop-up ads
• Ads before online videos
• Text message ads
• Ads in applications/games

The least annoying types (starting with the least):

• Advertorials in newspapers and magazines
• TV commercials
• Product placements in movies/TV shows
• Google search ads
• Traditional mail advertising

I don't know about you but to me the most annoying by far are ads that appear before online videos, especially those you cannot skip. Nothing will turn me off faster to a brand than making me sit through your commercial or video before getting to what I really came to see.

Sources: Adobe, businesswire.com, marketingcharts.com, Google Images

Named one of the Top 100 Influencers In Social Media (#41) by Social Technology Review and a Top 50 Social Media Blogger by Kred, Steve Olenski is a senior creative content strategist at Responsys, a leading global provider of on-demand email and cross-channel marketing solutions, and a member of the Editorial Board for the Journal of Digital & Social Media Marketing. He can be reached via Twitter, LinkedIn or Email. 

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Opportunity's Knocking And Marketers Are Not Answering

When It Comes To Big Data Is Less More?

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My oxymoronish title aside, two esteemed professors at an Ivy League school say that while those in the marketing world continue to struggle with how to handle all the data they are accumulating, they may in fact be wasting their time and more than likely need to go on what they refer to as a "data diet."

The amount of data brands collect today from all the various channels: social media, email, mobile, and on and on is enormous. 

Over the past year or so I've written three different articles about Big Data including one in January 2012 entitled Why CMOs Need To Get Real About The Policy Implications Of Big Data.

In that particular piece I made reference to a study done by IBM the year before of more than 1,700 CMOs from around the world who were asked to identify their four biggest challenges  and at the top of the list was Big Data. 

Also in that same article I interviewed an attorney who has worked with many Fortune 1000 companies advising them on issues related to cyber security, privacy and data breaches.

However, according to the aforementioned professors, all the talk about  Big Data and privacy may be, as they put it, "a tempest in a teapot."

Do Not Track Legislation

Back in February of this year I read an article from the New York Times Senator Seeks More Data Rights for Online Consumers. The article dealt with the fact that Senator John D. Rockefeller IV of West Virginia wants to "give American consumers more meaningful control over personal data collected about them online."

So I decided to reach out to Eric Bradlow and Peter Fader, Professors of Marketing and Co-Directors of the Wharton Customer Analytics Initiative who have studied the problem of data-privacy from an empirical perspective. Their research shows that brands and companies who are on a “data diet” don’t necessarily lose that much customer insights because limited customer data in conjunction with aggregate information (less privacy sensitive) can still provide precise insights.

And when it comes to personal data, Fader says bluntly that "most sensitive data is worthless and firms are often making mistakes to try to use it (or even collect it)." And adds that "when you build a really good model, there isn’t a whole lot to be gained by bringing in personal data. "

The concept of a "data diet" is nothing new for Bradlow and Fader. In a March 2009 interview with Knowledge @Wharton, the online business journal of the Wharton School, they spoke of something they referred to as "data minimization" or "data diet." The concept behind this is relatively simple: Brands should keep the data they need to stay competitive and ditch everything else. In the interview Bradlow spoke of a trepidation among brands to discard ANY piece of data.

"I think there is a fear and paranoia among companies that ... if they don't keep every little piece of information on a customer, they can't function," said Bradlow. "Companies continue to squirrel away data for a rainy day. We're not saying throw data away meaninglessly, but use what you need for forecasting and get rid of the rest."

Click here to read the full interview with professors Bradlow and Fader.

Big Brands, Big Decisions

In addition to reaching out to the professors I also wanted to get the perspective of someone from the brand perspective to see how a brand - in this case a very large brand, is dealing with and handling the topic of the pending Do Not Track legislation and how they are currently handling the issue itself on their end.

So I tracked down, no pun intended, Christa Carone, the CMO of Xerox to get her thoughts on all this.

She told me from Xerox's point of view they believe there are two issues that need to be addressed: First, is there value for the public to have the option to receive targeted advertising? And, second should the public make their own choice about this, or should governments/companies do it for them?

"Xerox selectively engages in behavioral targeting, and finds it to be effective," she said. However, she added that Xerox is a long-standing supporter of giving consumers’ choice on whether they want to receive more targeted communications from brands. "We were an early adopter of AdChoices," she continued. "And we began implementing the AdChoices’ icon on our corporate ad units in 2011."

One telling statistic she shared me with was the fact across of their corporate units they had just one person elect to opt-out. She questioned whether this lack of action (opting out) was due to a lack of understanding or simply because the consumer chose to opt out. "It’s likely a combination of both," she told me.

Full Transparency 

The need, or better still the benefit of coming clean and being as open and honest with consumers has never been more paramount than it is right now. The digital age affords no place to hide - be it figuratively or literally. Brands must be right up front with consumers and Carone is in full agreement.

"As an advertiser, we believe the industry can do a better job of being transparent about this issue -- driving consistent practices, systems and policies and helping to educate the public," she told me. She took it one step further saying  Xerox believes consumers should have a choice about whether behavioral targeting benefits their purchasing process.

So, regardless of just how much a given brand stores and uses, the bottom line is there is an inherent responsibility for brands of all shapes and sizes to tell consumers what it is they're doing, why they're doing it and how it can and will benefit them.

Sources: Google Images, New York Times, Knowledge @Wharton, Forbes 

Named one of the Top 100 Influencers In Social Media (#41) by Social Technology Review and a Top 50 Social Media Blogger by Kred, Steve Olenski is a senior creative content strategist at Responsys, a leading global provider of on-demand email and cross-channel marketing solutions, and a member of the Editorial Board for the Journal of Digital & Social Media Marketing. He can be reached via Twitter, LinkedIn or Email. 

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When It Comes To Big Data Is Less More?

LinkedIn Lady Show Interview March 22, 2013

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Last year I had the honor of being a guest on The LinkedIn Lady Show hosted by the brilliant Carol McManus. 

Carol is a is a self-described recovering corporate executive who left that world in 2007 to start her own business. She grew it quickly with a very limited marketing budget but through the creative and diligent use of social media.

Today, she is one of the most sought-after speakers and consultants for businesses and entrepreneurs who aspire to grow their business by using this digital medium as a way to stay in touch with and attract new clients.

On Friday, March 22, 2013 I was once again Carol's guest and during the show we talked about Responsys - my employer who is a leading provider of email and cross-channel marketing.  Their services include email, mobile, social, the web and display. 

We also talked about some of my recent Forbes' articles and the state of advertising, marketing and branding in general.

Enjoy!

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LinkedIn Lady Show Interview March 22, 2013

Price Always Trumps Brand, But It Shouldn't Matter To Marketers

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Let me preface this article by saying categorically I believe very much in the power of branding. I myself (isn't that redundant?) have worked on many branding campaigns for marketers and advertisers of all sizes and shapes. I know first hand the value of branding done right and done on a consistent basis i.e. staying true to a given brand's tone and voice over time.

But I also have been witness to a growing trend. 

A revealing trend that is bringing to the light the fact that more and more consumers are sacrificing brand loyalty for the best price on a given product, service, etc.

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Price Always Trumps Brand, But It Shouldn't Matter To Marketers