
August 23, 2010 in Web/Tech | Permalink | Comments (1) | TrackBack (0)
With inspiration and encouragement from @perryhewitt, New Circle Consulting and Force Five Partners have launched the Analytics Commons Project (http://analyticscommons.com). Here's the pitch:
Web analytics is a relatively new field that is evolving very quickly. Fortunately, it's been our experience that the community of web analysts is welcoming, vibrant, and very willing to share. The Web Analytics forum on Yahoo! is a wonderful example of this. Analytics Commons is an effort to improve on this sharing by structuring it a bit. With structure, we can make relevant knowledge a little easier to find, and we can also make it easier to vet the expertise and reliability of the source of that knowledge. (The new Web Analytics Association Certification program is another good step in this direction.) In designing Analytics Commons, we also decided to start by focusing on a specific form of analytics knowledge, rather than trying now to architect some general information architecture about the field that could capture all its (quickly changing) variety. In particular, we noticed: We also figured we would start with something that would be within our ability to actually get done. Our ambition for this initiative doesn't stop here, however. So, the service also provides a way for visitors and users to suggest feedback to shape the vision and path for getting there. So how does it work? If we've done our job well, it's hopefully self-evident. You register on the Analytics Commons site, and tell us a little about yourself, ideally through links to places where you keep your description up to date (e.g., LinkedIn, Twitter, etc.). If you've got a report to contribute, you get the url for it by clicking on the "Share button" in Google Analytics' Custom Reports or Advanced Segments sections from a GA profile in which you have access to them. Then, you add the url to our service and tag and describe what you've shared. If you need a report, you search for it on our service. If you find and try a report, all we ask is that you rate and comment on it to tell us how well it matched what you needed. Hopefully, discussions about each report will happen on our service, but if you want to connect privately with a report contributor, we've made room in our registered user profiles for folks to provide contact information if they wish. If you don't find what you were looking for, we let you store the search on our service, and if something matches in the future, we'll send you an email with the search results. If you want, you can subscribe to a weekly email listing new reports that have been added to our service, or get an RSS feed of the same. The service is free to its users. Our privacy policy is simple: everything here is public, except your registration email if you choose not to share that. We won't share that with anyone, period. If you share a report, we assume you have the authority to do that. If you comment on a report, please be polite and constructive. We reserve the right to moderate comments, and to ban anyone who posts material we deem to be inappropriate or offensive We saved some space on our pages for advertising / sponsorship, to help cover the server bills. If you're interested, please contact us. Questions? Suggestions? contact us if you wish at help@analyticscommons.com. About "Target Towns" In our work for a client, we observed the following: Therefore, we thought it would be useful to track traffic and behavior from these "Target Towns". We tried to construct an Advanced Segment for "Target Towns" through the GA UI. It didn't appear to support what we had in mind. So we asked for help. Avinash Kaushik, Nick Mihailovski, Judah Phillips, and Justin Cutroni all helped us with a piece of the puzzle (Thank You all!). In the end, the answer turned out that we needed to use the GA API. But the API also had limits on how much information you could hit it with in a single query. So we figured we needed a service that would pass the towns ("Dimensions") about which you wanted information ("Metrics") past the API sequentially, and then would aggregate and present the results in a usable form. Then we thought: "This is a report many people are likely to need!" So, the "Target Towns" service seemed like it would be a good candidate to help seed our Analytic Commons initiative.
July 16, 2010 in Analytics, Marketing, Online Communities, Online Marketing, Social Software, Structured Collaboration | Permalink | Comments (0) | TrackBack (0)
Prepping for http://bit.ly/b7KIQz
Here are some discussion questions we're considering. What's your "keep / change / drop / add" to this list? And, please take the poll at bottom!
1. How do you define "attribution analysis", and in particular, how do you distinguish it from media mix modeling? Where are the boundaries with "CRM"? Is it just a question of the fineness of the degree to which you can relate media effects to each other?
2. Everyone's got a poster child example or case study that illustrates the potential of multi-channel attribution analysis. For each of you, what's your poster child?
3. What are the practical limits of the utility of this analysis, and what's behind those limits? Put another way, at what point do you see diminishing returns to investments in attribution analysis, and why?
4. Let's talk techniques for a moment, since the session description promised we would. What particular approaches to data integration or to statistical analysis do you find robust enough for real-world use, and which ones are still too fragile to make work in most cases?
5. Some people approach attribution analysis as a capability-building exercise -- if we build it, they will come -- while others come at it from a tight, hypothesis-driven focus about where the value might lie, and in what sequence it might best make sense to explore connections. What do you need to know about a client to suggest which way, or what mix of the two, might make sense for them?
6. What are some principles and tactics for the governance of attribution analysis -- things like reconciling metrics and comp with the global optimization it implies -- that make sense here? Can you tell any stories about how these have been developed and applied?
7. What kind of experience, training, and topical education does it make sense for marketers to have, to fully take advantage of this?
8. How do you operationalize this analytic capability -- how do you make sure we move beyond insight and apply, either manually or even in automated ways, the directions the analysis suggests? And, how does this prospective operationalization [warning: mouthful!] affect the analysis you consider doing, in turn?
9. Let's build the ideal RFP for attribution analysis efforts, to help our clients out. What's in it? What shouldn't be?
10. What's your recommended reading list for learning about and following this field?
July 16, 2010 in Analytics, Marketing, Online Marketing, Speaking & Writing | Permalink | Comments (0) | TrackBack (0)
July 12, 2010 in Events | Permalink | Comments (0) | TrackBack (0)
I'll be moderating a panel at the OMMA Metrics & Measurement Conference in San Francisco on July 22.
The topic of the panel is, "Modeling Attribution: Practitioner Perspectives on the Media Mix". Here's the conference agenda page.
The panel description:
How do you determine the channels that influence offline and online behavior and marketing performance?
How should you allocate your budget across CRM emails, display ads, print advertising, television and radio commercials, direct mail, and other marketing sources?
What models, techniques, and technologies should you use develop attribution and predictive models that can drive your business?
Do you need SAS, SPSS, and a PhD in Statistics?
Does first click, last click, direct, indirect, or appropriate attribution matter – which is best?
What about multiple logistic regression?
What is the impact of survey and voice-of-the-customer data on attribution?
Hear from experts who have to answer these questions and tackle these tough issues as they work hard in the field every day for their consultancies, agencies, and brands.
So far, Manu Mathew, CEO from VisualIQ, and Todd Cunningham, SVP Research at MTV Networks, will be participating on the panel as well.
Hope to see you there. Meanwhile, please suggest questions you'd like to ask the panelists by commenting here. Thanks!
June 14, 2010 in Advertising, Analytics, e-business, ecommerce, Marketing, Media, Online Marketing, Speaking & Writing | Permalink | Comments (0) | TrackBack (0)
We've assembled a terrific panel for tomorrow's event:
Here are some of the questions we thought to cover:
Suggestions for questions welcome -- just email me via the link at left.
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Postscript: a recap of the panel on the MITX blog
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By this point, many of you will be familiar with some of the more interesting and exotic examples of "integrated cross-channel product experiences", such as the Nike+ product/ service/ community. But the approach has gone mainstream too. Here's a recent example I experienced:
I went with my family to the "99" Restaurant in Centerville, on Cape Cod in Massachusetts (the one on Route 28). Lying on the table was a pad of these forms:
I texted my information in, and 24 hours later this appeared in my inbox:
I clicked through:
Store
to text to email to web to store, all nicely connected. Cool! Hope
we're back before it expires. Otherwise we'll have to sacrifice another
family member's phone. (Maybe do that anyway, and ask for separate
checks... Hey, times are tough!)
This program is run soup-to-nuts for the "99" by an external service called Fishbowl Marketing. It's pretty good! I'm hoping to speak with them about experiences and results with it.
A few observations:
What's your favorite example? Hope to see you tomorrow morning!
April 28, 2010 in Analytics, ecommerce, Marketing, Online Marketing, Speaking & Writing, usability | Permalink | Comments (0) | TrackBack (0)
April 13, 2010 in Advertising, Analytics, Events, Marketing, Mobile, Online Marketing, Social Software, Speaking & Writing | Permalink | Comments (0) | TrackBack (0)
A few months ago I posted on what I called "Fly-By-Wire Marketing", or the emergence of the automation of marketing decisions -- and sometimes the automation of the development of rules for guiding those decisions.
More recently Brian Stein introduced me to Hunch, the new recommendation service founded by Caterina Fake of Flickr fame. (Here's their description of how it works. Here's my profile, I'm just getting going.) When you register, you answer questions to help the system get to know you. When you ask for a recommendation on a topic, the system not only considers what others have recommended under different conditions, but also what you've told it about you, and how you compare with others who have sought advice on the subject.
It's an ambitious service, both in terms of its potential business value (as an affiliate on steroids), but also in terms of its technical approach to "real time personalization". Via Sim Simeonov's blog, I read this GigaOm post by Tom Pinckney, a Hunch co-founder and their VP of Engineering. Sim's comment sparked an interesting comment thread on Tom's post. They're useful to read to get a feel for the balance between pre-computation and on-the-fly computation, as well as the advantages of and limits to large pre-existing data sets about user preferences and behavior, that go into these services today.
One thing neither post mentions is that there may be diminishing returns to increasingly powerful recommendation logic if the set of things from which a recommendation can ultimately be selected is limited at a generic level. For example, take a look at Hunch's recommendations for housewarming gifts. The results more or less break down into wine, plants, media, and housewares. Beyond this level, I'm not sure the answer is improved by "the wisdom of Hunch's crowd" or "Hunch's wisdom about me", as much as my specific wisdom about the person for whom I'm getting the gift, or maybe by what's available at a good price. (Perhaps this particular Hunch "topic" could be further improved by crossing recommendations against the intended beneficiary's Amazon wish list?)
My point isn't that Hunch isn't an interesting or potentially useful service. Rather, as I argued several months ago,
The [next] question you ask yourself is, "How far down this road does it makes sense for me to go, by when?" Up until recently, I thought about this with the fairly simplistic idea that there are single curves that describe exponentially decreasing returns and exponentially increasing complexity. The reality is that there are different relationships between complexity and returns at different points -- what my old boss George Bennett used to call "step-function" change.
For me, the practical question-within-a-question this raises is, for each of these "step-functions", is there an version of the algorithm that's only 20% as complex, that gets me 80% of the benefit? My experience has been that the answer is usually "yes". But even if that weren't the case, my approach in jumping into the uncharted territory of a "step-function" change in process, with new supporting technology and people roles, would be to start simple and see where that goes.
At minimum, given the "step-function" economics demonstrated by the Demand Medias of the world, I think senior marketing executives should be asking themselves, "What does the next 'step-function' look like?", and "What's the simplest version of it we should be exploring?" (Naturally, marketing efforts in different channels might proceed down this road at different paces, depending on a variety of factors, including the volume of business through that channel, the maturity of the technology involved, and the quality of the available data...)
Hunch is an interesting specific example of the increasingly broad RTP trend. The NYT had an interesting article on real time bidding for display ads yesterday, for example. The deeper issue in the trend I find interesting is the shift in power and profit toward specialized third parties who develop the capability to match the right cookie to the right ad unit (or, for humans, the right user to the right advertiser), and away from publishers with audiences. In the case of Hunch, they're one and the same, but they're the exception. How much of the increased value advertisers are willing to pay for better targeting goes to the specialized provider with the algorithm and the computing power, versus the publisher with the audience and the data about its members' behavior? And for that matter, how can advertisers better optimize their investments across the continuum of targeting granularity? Given the dollars now flooding into digital marketing, these questions aren't trivial.
March 13, 2010 in Advertising, Analytics, Application Design, ecommerce, Marketing, Media, Online Marketing, Social Software, Structured Collaboration, Technology, Viral Marketing, Web/Tech | Permalink | Comments (0) | TrackBack (0)
(Previously titled: "Adobe: Up In The Air")
As folks line up for the iPad, SXSW rages, and the Splinternet splinters, if you own a smartphone or plan to own one, or a tablet, or if you're about to commission an app for one of these platforms, this post is for you.
A couple of years ago, Adobe seemed to have positioned itself smartly for global domination. The simple logic:
- Online experiences becoming richer
- Adobe makes tools for rich experiences (Flash, Flex, Air)
- Ergo, Adobe becomes richer
Or for you Mondrian fans, the visual version of Adobe's "All Mine!"
Oh that it were that simple. So, Apple, also vaguely interested in rich immersive experiences as its path out of the hip hardware niche toward intergalactic domination, plays the digital Soup Nazi: "No Flash support for you!" Again, for the Visualistas:
The nerve! As if that weren't bad enough, there are those pesky evolving standards to stay ahead of. HTML 5 now rides into town to save the Internet garden from the weedy assault of proprietary browser plugins (Flash, Gears, Silverlight) for supporting rich experiences (read as: need more client-side processing and storage than HTML 4 + browsers could offer). Like any abstraction, it has performance compromises. But, with powerful friends behind it with a shared interest in taking down the de facto rich experience standard -- Flash is on basically every non-mobile browser out there -- HTML 5 will get better, if like any standard, slowly. The picture:
For you conspiracy theorists, a Smoking Gun:
Now, those Adobe folks are pretty smart too, and they aren't sitting still. Basically, their strategy amounts to two things:
Here's a good interview Rob Scoble did with the Adobe guys where they explain all this in 22 minutes. Here's my graphic translation of the interview:
A while ago I wrote a post on strategy in the software business that forms the frame for how I try to understand what's happening. I think it still makes sense, but I'm eager to hear suggestions for improving it!
So what? What does this mean for the publishers who are trying to figure out how to respond to the Splinternet? I think it makes sense, as always, to start with The User. Is what you are trying to do for him or her sufficiently exotic (and rewardably so) that you need the unique capabilities of each smartphone's / tablet's native OS / SDK? Or is the idea sufficiently "genius" that you don't need to tart it up with whizziness, and can accept certain limitations in exchange for "Write once, run anywhere?"
I'd predict that Adobe will make common cause with some hardware manufacturer(s) -- HP, anyone? It will be interesting to see what Adobe's willing to trade off for that support.
Where's Microsoft in all this?
March 12, 2010 in Analytics, Application Design, Mobile, Technology, Web/Tech | Permalink | Comments (0) | TrackBack (0)
More and more, people agree that filtering the flood of information that's coming at us is supplanting publishing, finding, and connecting as the problem of the Information Age. Today, the state of the art for doing this includes several approaches:
In addition to what gets through, there's how it's presented. RSS readers for example offer a huge productivity boost to anyone trying to keep up with more than a few sources of information. However, once you get several hundreds items in your RSS reader, unsorted by anything other than "last in", it's back to information overload. To solve this, innovative services like Newsmap provide multi-dimensional visual displays to try to push your information awareness productivity even further. But so far, they've seen only modest adoption.
One limitation of today's filtering and productivity tools is that they pick items up either too early, before it's clear they represent something meaningful, or too late, once the advantages of recognizing a trend have passed.
Yesterday, I visited the team behind a new service called Darwin Ecosystem (video showing it off here) that takes a different and potentially more powerful and useful approach to helping you "filter the collective preconscious" -- that is, to identify emergent signals in the vast noise of the Internet (or any other body of information you might point to -- say, for example, customer service call logs). Co-founder and CEO Thierry Hubert is a veteran of the knowledge management world going back to senior technical roles at Lotus and IBM; his partner Frederic Deriot shares similar experiences; and, my friend Bill Ives -- formerly head of Accenture's KM client practice -- is also involved as VP Marketing.
Briefly -- look at the demo, it does a better job of explaining itself -- the service presents a tag cloud of topics that it thinks represent emergent themes to pay attention to in the "corpus" filled by sources you point it to (in the demo, sources run to hundreds of news sources and social media). The bigger the font, the more important the theme. Hover your mouse over a theme, and it highlights other related themes to put them all into a collective context. The service also provides a dynamic view of what's hot / not with a stock-ticker-style ribbon running at the top of the page. You can view the cloud of emergent themes either in an "unfiltered view", or more usefully, filtered with "attractor" keywords you can specify.
This interface, while interesting, will likely not be the eventual "user/use-case" packaging of the service. I can see this as a built-in "front page" for an RSS reader, for example, or, minus the tag cloud, as the basis for a more conventional looking email alert service.
The service is based on the math behind Chaos Theory. This is the math that helps us understand how the proverbial beating of a butterfly's wings in China might become a massive storm. (Math nerds will appreciate the Lorenz-attractor-plot-as-butterfly-wings logo.) The service uses this math to tell you not only what individual topics are gaining or losing momentum, but also to highlight relationships between and among different topics to put them into context -- like why "underwear" and "bomber" might be related.
Now in beta, with a few large organizations (including large media firms) as early adopters, the service has had some early wins that demonstrate its potential. It told users, for example, that Lou Dobbs might be on his way out at CNN a week before his departure was reported in the mainstream press. It also picked up news of UCLA's planned tuition hikes 48 hours in advance of this getting reported in popular mainstream or social media.
It strikes me that a service like Darwin is complementary to that of Crimson Hexagon, a sentiment analysis firm based on Prof. Gary King's work at Harvard (here's the software that came out of that work), with a variety of marketing, media, and customer support applications. Darwin helps tell you what to pay attention to -- suggests emergent themes and their context; Crimson Hexagon can then tell you how people feel about these issues in a nuanced way, beyond simple positive / negative buzz.
The current business model has Darwin pursuing enterprise licensing deals with major firms, but depending on partners that emerge, that may not be the last stop on the adoption / monetization express. For example, it seems to me that a user's interaction with a tool like Darwin represents highly intentional behavior that would be useful data for ad / offer targeting, or personalization of content generally. This potential use as a marketing analytics input makes it especially interesting to me.
Bottom line: if you are responsible for syndicating and helping users usefully navigate a highly dynamic information set collected through a multitude of sources -- say, a news organization, a university, a large consumer products or services firm -- and are evaluating monitoring technologies, Darwin is worth a look.
March 09, 2010 in Analytics, Current Affairs, ecommerce, Media, Online Marketing, Technology, usability, Web/Tech | Permalink | Comments (1) | TrackBack (0)
February 09, 2010 in Analytics, ecommerce, Marketing, Online Marketing, Technology | Permalink | Comments (0) | TrackBack (0)
As reported in Mediapost today. Here's my New Year's Day post on Google Wave, predicting what they're calling Buzz. Interesting, bit not surprising -- no FB integration.
February 09, 2010 in Search, Social Software | Permalink | Comments (0) | TrackBack (0)
The session was well-attended and the panelists didn't disappoint. Across the board they provided a consistent cross-section of the sophistication and energy that characterizes life 2 SDs the right on the ecommerce success curve.
My notes and observations follow. But first, courtesy of Jeff, a quiz (answers at the end of the post):
1. Name the person, company, and city that originated the web-based shopping cart and secure payment process?
2. Name the person, company, and city that originated affiliate marketing on the web?
3. Name the largest email marketing firm in the world, and the city where it's headquartered?
Jeff opened by asking each of the panelists to talk about how they drive traffic, and how they try to distinguish themselves in doing so.
Brian described (my version) what his firm does as "performance marketing in the long tail", historically for education-sector customers (for- and non-profit) but now beyond that category. What that means is that they manage bidding and creative for 2 million less-popular keywords across all the major search engines for their customers. Their business is entirely automated and uses sophisticated models to predict when a customer should be willing to pay price X and use creative Y for keyword Z to reel in a likely-profitable order. The idea is that the boom in SEM demand has driven prices way up for popular keywords, but that there are still efficient marketing deals to be mined in the "long tail" of keyword popularity (e.g.,structured collaboration").
Niraj noted that there's an increasing returns dynamic in the SEM channel that raises entry barriers for upstarts and helps firms like CSN preserve and expand their position. Namely, as firms like his get more sophisticated about conversion through scale and experience, they can afford to pay higher prices for a given keyword than smaller competitors can, and can reinvest in extending their SEM capabilities. CSN now has a 10-person search marketing team within its total staff of 500. Since SEM is, to some degree, a jump-starter for firms that don't yet have a web presence sufficient to drive traffic organically, this edge is a powerful competitive weapon. CSN is up to $200 million in annual revenues, and now manages the online furniture stores for folks like Walmart.
Scott sounded a different note, with similar results. Shoebuy has focused more on cultivating its relationship with its existing customers and on Lifetime Value -- including referrals. This focus has had a salutary effect on SEO, allowing them to rely less on SEM as it gets pricier. Last year Shoebuy experienced double-digit top line growth and hit 8M uniques for December's shopping season, while realizing its lowest marketing expense as a percentage of sales since 2002. They've continued to plow the savings into a better overall customer experience. One way Shoebuy guides this reinvestment is through extensive use of Net Promoter-based surveys. They keep the surveys brutally simple: 1)"Were you satisfied?" 2)"Whould you shop with us again?" 3)"Would you recommend us?". Then they calculate the resulting NP scores to different things they try in their marketing mix, to give them a more nuanced insight than the binary outcome of an order can provide.
Tom described how while Mall Networks' traffic is "free" -- it all comes from their loyalty program partners' sites (e.g. Delta Skymiles website awards redemption page) -- they still have to jockey for Mall Networks' placement on those pages. (Though Tom was too polite to say so, the processes for deciding who goes where on popular pages is often a blood sport and ripe in most organizations for a more structured, rational approach.)
Former Molecular founder and CEO Ralph Folz asked about display -- is that making a comeback? Brian indicated the lack of performance and the lack of placement control through ad networks made that a highly negative experience. He did note that they are now experimenting with participation in real-time-bidding through ad exchanges for inventory that ad networks make available, sometimes for time windows only a hundred milliseconds long. Jeff reinforced the emergence of "RTB" and mentioned MIT Prof. Ed Crawley's Cambridge-based DataXu (which Flybridge has invested in) as a leader in the field.
Affiliate marketing came up next. Tom explained the basics (in response to a question): each of the 600 stores in Mall Networks stable pays Mall Networks, say for example, a 10% commission on orders that come through Mall Networks. Mall Networks gives a chunk to the members of various loyalty programs that shop through it -- say 3-5% of the value of the order; some goes to the loyalty programs themselves, as partial inducements for sending traffic to Mall Networks, and the rest goes to Mall Networks to cover costs and yield profits.
All the other panelists include affiliates in their marketing mix, and all appeared satisfied to have them play a healthy role. Niraj specifically mentioned the ShareASale and Google Affiliate networks. Jeff asked about everyone's frenemy Amazon; the answers were uniformly respectful: "they're a tough competitor, but they build general confidence and familiarity with the ecommerce channel, and that's good for everyone." Niraj noted the 800 lb. gorilla nature of their category dominance: "They're at $20m and NewEgg is the next biggest pure play at $2B. They're a fact of life. We just have to be better at what we focus on."
Someone in the audience raised email. All of the panelists use it, with lists ranging from millions to hundreds of millions of recipients in size. They noted that this traditional pillar of online marketing has now gotten very sophisticated. In their world, they look well beyond top line metrics like open- and clickthrough rates to root-cause analysis of segment-based performance. Re-targeting came up, and Niraj noted that for them, email and re-targeting weren't substitutes (as some have seen them) but in fact played complementary roles in their mix. (Jeff explained re-targeting for the audience: using an ad network to cookie visitors to your site, and then serving them "please come back!" ads on other sites in the network they go to after they've abandoned a shopping cart or otherwise left your site. A twist: serving ads inviting them to *your* site after they've abandoned one of your competitors' sites. Hey, all's fair in love, war, and ecommerce...). A common theme: unlike most of the rest of the world, email teams at these leading firms are tightly integrated with other channels' operators to better integrate the overall experience, even to the point of shared metrics.
What about social? Scott: "Building community is key for us. We run contests -- "What are you hoping will be under your tree this Christmas?" -- to stimulate input from our customers. And, while we have social media coordinators, many people here participate in channels like Twitter in support of our efforts." Niraj: "Our PR team came up with a 'Living Room Rescue' contest which we did in partnership with [a popular] HGTV host [whose name escaped me -- C.B.]. We got six thousand entries; we used a panel of professional decorators to narrow the list to a hundred, and then used social voting to choose a winner. We publicized the contest, and it took on a life of its own, as local papers tried to drum up support for their local [slobs -- my word, not Niraj's]. While we couldn't / didn't measure conversion directly from this campaign, our indirect assessment was that it had a great ROI." Jeff observed that social's potential seems greater when the object of the buzz is newsworthy.
It was a short leap from this to a question about attribution analysis, the simultaneous-dream-and-nightmare-du-jour for web analytics geeks out there. Brian was surprisingly dismissive. In his experience (if I understood correctly), he's seeing only up to 20%, and usually only 5-10% of order-placing customers touch two or more properties they source clicks from, across the broad landscape they cover, across a time frame ranging from a day to a month long. "In the end, only a couple of dollars would shift from one channel to another if we did attribution analysis, so in general it's not worth it." We chatted briefly after the panel about this; there are large ticket, high-margin exceptions to this rule (cars). I need to learn about this one some more, it surprised me.
Mobile! Is it finally here? Scott reports that 6-9 months ago *customers* finally began asking for it (as opposed to having it pushed by vendors), so now they have a Shoebuy.com iPhone app. Jeff noted that customers are rolling their own mobile strategies -- some folks are now going into (say) Best Buy, having a look at products in the flesh, then checking Amazon for the items and buying them through their iPhone if the price is right. So, your store is now Amazon's showroom. If you can't find something, or didn't even know you wanted it, but happen to stray near a store carrying it, location-based services will push offers at you -- and the offers may come from competitors. (Gratuitous told-you-so here.) Niraj: "Say you're in Home Depot. You want a mailbox. Their selection is 'limited' [his description was more colorful]. We have 300 to choose from. Wouldn't you want to know that?" Jeff: Soon we'll also see the death of the checkout line: you'll take a picture of the barcode on the object of your desire, your smartphone will tell the store's POS system about it, and the POS system will send back a digital receipt you can show someone (or in the future, something) on your way out of the store.
With all these channels in use, I asked how often they make decisions to reallocate investments across (as opposed to within) them -- say from search to email, as opposed to from keyword to keyword. Brian: "Every day, each morning. Some things -- like affiliate relationships -- may take 3-4 days to unwind. But the optimization is basically non-stop." Later we talked about the parallels with Wall Street trading floors. For him, the analogy is apt. Effectively he's a market-maker, only the securities are clicks, not stocks. It's now reflected in their recruiting: many recent hires are former Wall Street quants.
A final note: The cultures in these shops are intensely customer-focused, flat, and data-driven. Scott reads *every one* of the hundreds of thousands (yes you read right) of customer survey responses Shoebuy gets each year. He also described the enthusiasm with which their customer service team embraced having all company communications to customers end with an invitation to email senior management with any concerns. Niraj described CSN's floor plan: 500 people, no offices. Everyone in the company takes a regular turn in customer service. Everyone has access to the firm's data warehouse. Brian told us about a digital display they have up in their offices showing hour-by-hour, source-by-source performance. They also recently ran a "Query Day" in which everyone in the company -- including sales, finance, HR -- got training in how to use their databases to answer business questions. Tom described that they “watch the
cash register every minute, hour, day during the Christmas shopping season.”
This was a terrific session, and I've only captured half of it here. Further comments / corrections / observations very welcome.
Quiz Answers:
1. MIT Prof. David K. Gifford, Open Market, Cambridge
2. Tom Gerace, BeFree, Cambridge
3. Constant Contact, Waltham
January 29, 2010 in Advertising, Analytics, ecommerce, Events, Marketing, Mobile, Online Communities, Online Marketing, Search, Viral Marketing | Permalink | Comments (0) | TrackBack (0)
OK, with the response curve for my survey tailing off, I'm calling it. Here, dear readers, is what you said (click on the image to enlarge it):
(First, stats: with ~40 responses -- there are fewer points because of some duplicate answers -- you can be 95% sure that answers from the rest of the ~20M people that read the NYT online would be +/- 16% from what's here.)
90% of respondents would pay at least $1/month, and several would pay as much as $10/month. And, folks are ready to start paying after only ~2 articles a day. Pretty interesting! More latent value than I would have guessed. At the same time, it's also interesting to note that no one went as high as the $14 / month Amazon wants to deliver the Times on the Kindle. (I wonder how many Kindle NYT subs are also paper subs getting the Kindle as a freebie tossed in?)
Only a very few online publishers aiming at "the general public" will be able to charge for content on the web as we have known it, or through other newer channels. Aside from highly-focused publishers whose readers can charge subscriptions to expense accounts, the rest of the world will scrape by on pennies from AdSense et al.
But, you say, what about the Apple Tablet (announcement tomorrow! details yesterday), and certain publishers' plans for it? I see several issues:
The future of paid content is in filtering information and increasing its utility. Media firms that deliver superior filtering and utility at fair prices will survive and thrive. Among its innovations in visual displays of information (which though creative, I'd guess have a limited monetization impact) is evidence that the Times agrees with this, at least in part (from the article on Times R&D linked to above):
When Bilton swipes his Times key card, the screen pulls up a personalized version of the paper, his interests highlighted. He clicks a button, opens the kiosk door, and inside I see an ordinary office printer, which releases a physical printout with just the articles he wants. As it prints, a second copy is sent to his phone.
The futuristic kiosk may be a plaything, but it captures the essence of R&D’s vision, in which the New York Times is less a newspaper and more an informative virus—hopping from host to host, personalizing itself to any environment.
Aside from my curiosity about the answers to the survey questions themselves, I had another reason for doing this survey. All the articles I saw on the Times' announcement that it would start charging had the usual free-text commenting going. Sprinkled through the comments were occasional suggestions from readers about what they might pay, but it was virtually impossible to take any sort of quantified pulse on this issue in this format. Following "structured collaboration" principles, I took five minutes to throw up the survey to make it easy to contribute and consume answers. Hopefully I've made it easier for readers to filter / process the Times' announcement, and made the analysis useful as well -- for example, feel free to stick the chart in your business plan for a subscription-based online content business ;-) If anyone can point me to other, larger, more rigorous surveys on the topic, I'd be much obliged.
The broader utility of structuring the data capture this way is perhaps greatest to media firms themselves: indirectly for ad and content targeting value, and perhaps because once you have lots of simple databases like this, it becomes possible to weave more complex queries across them, and out of these queries, some interesting, original editorial possibilities.
Briefly considered, then rejected for its avarice and stupidity: personalized pricing offers to subscribe to the NYT online based on how you respond to the survey :-)
Postscript: via my friend Thomas Macauley, NY (Long Island) Newsday is up to 35 paid online subs.
January 26, 2010 in Advertising, Analytics, Application Design, Art, Current Affairs, e-business, E-Learning, ecommerce, Marketing, Media, Mobile, Structured Collaboration, Technology | Permalink | Comments (0) | TrackBack (0)
Another question concerned how measurable they find / are trying to make their marketing, and what that's meant to their business. Scott described DD as very analytically driven, telling a story about how insights have transformed their business. he described how they had observed that 92% of their orders were "ship-to-someone-other-than-buyer". This helped them conclude that they weren't really a bakery, as the founders perceived, but a gift retailer. So, they stopped taking pictures of the cakes, and started taking pictures of the packages for their catalogs! (Very memorable "data is the new creative" example, IMHO.)
The panelists were asked about the degree to which they are pursuing finer-grained measurement, and how much they are using testing. Interestingly, they suggested that there were both cost and utility limits to what they could do. Charlie noted that being two layers away from the customer made measurement beyond profit per case-equivalent a very expensive proposition for them. As for testing, Scott noted that with most of their sales concentrated in a very tight seasonal window, testing carried high risks that didn't rule it out, but made them more conservative about what to try. Nonetheless, he noted that given the ease of fielding some tests they are now able to adjust what they do within this tight holiday window if they start very early -- right after Thanksgiving this year, for example.
I asked what campaigns by others they found memorable and gave them ideas for their own marketing. All three panelists mentioned good ones. I liked Frank's best: he described how, before and during a major snowstorm, Volvo Boston had sent email weather advisories and reminders about topping up on windshield fluid. Great example of indirect brand building through a useful service.
Afterward I chatted briefly with Paul Regensburg, President of Rain Castle Communications, which recently helped Unica re-launch its brand. Paul noted a slightly less breathless tenor about "new channels" among the panelists than you'd expect if all you read were the trades. We agreed that it's always different to hear directly from practitioners, especially when you ask them about everything they're grappling with rather than any particular channel effort or campaign. The calibration was really useful.
(Finally, congratulations to Myles and his volunteer
colleagues for the great work they've done building the Boston chapter
to be the fourth largest of 78 in the country. Last night's event drew
well over 100 people, not bad for a frosty January weeknight. Myles
noted that 30% of ticket sales for the event
had come from their viral "Tweets For Seats" Program.)
January 22, 2010 in Events, Marketing, Trip Reports | Permalink | Comments (0) | TrackBack (0)
Via Chris Schroeder's (@cmsschroed) RT of Henry Blodget (@hblodget), the news of the NYT's decision to start charging (again) for content.
Blodget's prior analysis suggested this might be worth ~$100 million per year (my deduction based on his math) to NYT Co. If a tenth of its 130M monthly unique visitors end up being "heavy users" that pay, 4 bucks a month gets them ~$600 million annually (13m * $4 * 12 months = $624 million). (Seems high; better data anyone?)
What's it worth to you? See what some folks had to say in the chart below. Please take this survey to add your perspective, and let your friends know about it:
Note: I removed one response of "1 million articles for free, willing to pay $0 thereafter" because it messed up the display, but am mentioning it here for full disclosure. And to the respondent, thank you for participating!
Postscript: conclusions and analysis
January 17, 2010 in Analytics, Current Affairs, e-business, ecommerce, Marketing, Online Marketing | Permalink | Comments (0) | TrackBack (0)
January 02, 2010 in Analytics, ecommerce, Online Marketing | Permalink | Comments (0) | TrackBack (0)
A few people asked me recently what I thought of Google Wave. Like others, I've struggled to answer this.
In the past few days I've been following the news about the failed attempt to blow up Northwest 253 on Christmas Day, and the finger-pointing among various agencies that's followed it. More particularly, I've been thinking less about whose fault it is and more about how social media / collaboration tools might be applied to reduce the chance of a Missed Connection like this.
A lot of the comments by folks in these agencies went something like, "Well, they didn't tell us that they knew X," or "We didn't think we needed to pass this information on." What most of these comments have in common is that they're rooted in a model of person-to-person (or point-to-point) communication, which creates the possibility that one might "be left out of the loop" or "not get the memo".
For me, this created a helpful context for understanding how Google Wave is different from email and IM, and why the difference is important. Google Wave's issue isn't that the fundamental concept's not a good idea. It is. Rather, its problem is that it's paradigmatically foreign to how most people (excepting the wikifringe) still think.
Put simply, Google Wave makes conversations ("Waves") primary, and who's participating secondary. Email, in contrast, makes participants primary, and the subjects of conversations secondary. In Google Wave, with the right permissions, folks can opt into reading and participating in conversations, and they can invite others. The onus for awareness shifts from the initiator of a conversation to folks who have the permission and responsibility to be aware of the conversation. (Here's a good video from the Wave team that explains the difference right up front.) If the conversation about Mr. Abdulmutallab's activities had been primary, the focus today would be about who read the memo, rather than who got it. That would be good. I'd rather we had a filtering problem than an information access / integration problem.
You may well ask, "Isn't the emperor scantily clad -- how is this different from a threaded bboard?" Great question. One answer might be that "Bboards typically exist either independently, or as features of separate purpose-specific web sites. Google Wave is to threaded bboard discussions as Google Reader is to RSS feeds -- a site-independent conversation aggregator, just as Google Reader is a site-independent content aggregator." Nice! Almost: one problem of course is that Google Wave today only supports conversations that start natively in Google Wave. And, of course, that you can (sometimes) subscribe to RSS feeds of bboard posts, as in Google Groups, or by following conversations by subscribing to RSS feeds for Twitter hashtags. Another question: "How is Google Wave different from chat rooms?" In general, most chats are more evanescent, while Waves appear (to me) to support both synchronous chat and asynchronous exchanges equally well.
Now the Big Question: "Why should I care? No one is using Google Wave anyway." True (only 1 million invitation-only beta accounts as of mid-November, active number unknown) -- but at least 146 million people use Gmail. Others already expect Google Wave eventually will be introduced as a feature for Gmail: instead of / in addition to sending a message, you'll be able to start a "Wave". It's one of the top requests for the Wave team. (Gmail already approximates Wave by organizing its list of messages into threads, and by supporting labeling and filtering.) Facebook, with groups and fan pages, appears to have stolen a march on Google for now, but for the vast bulk of the world that still lives in email, it's clunky to switch back and forth. The killer social media / collaboration app is one that tightly integrates conversations and collaboration with messaging, and the prospect of Google-Wave-in-Gmail is the closest solution with any realistic adoption prospects that I can imagine right now.
So while it's absurdly early, marketers, you read it here first: Sponsored Google Waves :-) And for you developers, it's not too early to get started hacking the Google Wave API and planning how to monetize your apps.
Oh, and Happy New Year!
January 01, 2010 in Advertising, Marketing, Media, Online Communities, Online Marketing, Search, Social Software, Structured Collaboration, usability, Viral Marketing, Web/Tech | Permalink | Comments (0) | TrackBack (0)
Once again it's the Year Of Mobile. Let's put aside for the moment whether you think this is still another macromyopic projection. Assuming you buy that, there's no denying the iPhone's leadership position in the mobile ecosystem. If mobile's important to you, the iPhone desktop is "strategic ground" whose evolution you should care about.
A frequent beef about the iPhone is that all apps are accessed from a single-level desktop, and that you have to swipe across several screens to get to the app you want. (Sometimes, this can be life-threatening, as when a friend launches PhoneSaber, and you're slow on the draw.) Today we're mostly stuck with this AFAIK, since my cursory research (browsing plus buttonholing some Apple Store folks) didn't reveal any immediate plans to upgrade the iPhone OS to address this.
It's interesting to see how what tribe you're from influences how you'd solve this. If Microsoft (of yore, anyway) made the iPhone, the solution might likely be some sort of Windows Explorer-type hierarchical folders. If Google made the iPhone, the answer to this challenge might be Gmail-style labels / tags. If you come from the Apple/ Adobe RIA world, Expose might appeal to you.
From the business side, my mind runs to the "Why" that will shape the "When" and "How". Here's a 2010 prediction: big firms will stop thinking in terms of having one iPhone app, and more in terms of fielding "branded suites" of iPhone apps.
Let's say you're a media firm, with multiple media properties. These properties might share a similar functional need solved by a common app, like a reader. Or, a single media property (say, a men's lifestyle one) might want a collection of lighter-weight, function-specific apps like a wine-chooser, a tie-chooser (take pictures of your ties, then have the app suggest -- via expert opinion, crowdsourcing, or an API for your significant other to code to -- which of your ties might go well with a shirt you see / snap a picture of at the store), and so on.
Without more dimensionality to Springboard, the BigCo app developer has two choices:
The BigCo marketing department has a choice not available to the lowly app developer, however, and that's to write Apple a check. It's reasonable to expect that we won't all get access to the new "MDS" (Multi-Dimensional Springboard) API BigCo gets. Today, Apple already price-discriminates among iPhone developers: the Standard enrollment charge is $99, while the Enterprise is $299. As this platform becomes even more important, and as BigCos want to do more with it, it's reasonable to expect that Apple will get even more creative with its pricing, private or publicly.
So that's the "Why". As for "When", I'm guessing no earlier than 2011, given Apple's Cathedral-style approach to iPhone development (this might provide an opportunity for Android, BTW). (Thanks for re-tweeting this, @perryhewitt .)
And "How"? I'm betting on an Expose-style interface. Swipe down to "zoom in" to a single screen, swipe up to move to a "higher altitude" and view multiple screens at once, perhaps with a subtle label or background (brand-appropriate, natch) for each one.
Who's closer to this? What do you know?
December 26, 2009 in Advertising, Application Design, Media, Mobile, Technology, usability | Permalink | Comments (0) | TrackBack (0)
Tony Haile was my gracious host last week for a short visit to Betaworks in Manhattan's meatpacking district. Fascinating conversation (Thanks Tony!), more about that in a separate post to follow.
Across the street from Betaworks' offices was this sign:
Hit me like a ton of bricks (no irony). My gold standard for trying boil down what I'm doing -- and for that matter what anyone else I'm working with is doing:
December 22, 2009 in Advertising, Marketing, Trip Reports | Permalink | Comments (0) | TrackBack (0)
