RazorfishOutlookReportVol10
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RazorfishOutlookReportVol10
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outlook report<br />
VOL 10
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Outlook Report, Volume 10 — There’s no better time to start something.<br />
The Year in Media<br />
Forget Mobile — Think Multiscreen<br />
A Wake-Up Call for Collaboration<br />
It’s Time for Big Data to Improve Customer Experience<br />
Humanity Check — What Consumers Really Think About Tech<br />
How the Social Cloud Can Accelerate Brand Interaction<br />
Beyond the Banner — Unleashing the Power of Digital to Drive Topline Growth<br />
The Rules of Gamification<br />
It’s Not Enough to Be Liked — Getting Serious About Social<br />
Controlling the Retail Environment Through Digital Brand Immersion<br />
Performance Marketing Must Die<br />
Toward a New Global Digital Agency Structure<br />
Limited Time to Prepare for Unlimited Potential of Mobile<br />
How the Open API Movement Can Help Your Brand<br />
Organizing for Digital Success<br />
Authors and Contributors<br />
Contact<br />
GO tO razOrfishOutLOOk.razOrfish.cOm fOr an interactiVe VersiOn Of OUTLOOK OutLOOk REPORT repOrt, | VOL 10.<br />
10<br />
3
4<br />
There’s no better time<br />
to start something.
As we gathered the data and spoke to clients and industry watchers to put together the Razorfish Outlook Report,<br />
we once again found our business in the middle of tremendous global change. The conversation around digital<br />
marketing — long the domain of digital agencies and technology companies — is now part of a much broader<br />
conversation about social and cultural change, the global economy and business landscape.<br />
In today’s world, social tools that started as communications<br />
and marketing tools have become conduits for revolution.<br />
Cloud-based services have finally emerged as viable methods<br />
for increasing collaboration and driving greater efficiency.<br />
And the investment world increasingly looks to start-ups<br />
to once again push the global economy forward.<br />
This means digital is now a lot bigger than agencies. In fact,<br />
it’s bigger than marketing. It’s increasingly woven into the fabric<br />
of our business and consumer culture. This inspires us more<br />
than ever not only to optimize the status quo, but also to ignite<br />
a business movement of sorts.<br />
But how?<br />
First, there is more pressure on our business to perform<br />
creatively, stemming from the fact that digital ideas come<br />
from more sources than just the agency. Indeed, as the new<br />
generation of creators enters the workforce, we have observed<br />
their natural tendency to put digital at the center of their process<br />
and thinking, regardless of their chosen industry or employer.<br />
As a result, companies like ours have to raise their game<br />
creatively to deliver idea-led value to our clients, while creating<br />
an environment for new ideas to thrive.<br />
Next, there is a strong drive to leverage the power of technology<br />
to increase efficiency and drive down the cost of marketing<br />
and doing business. We are seeing tremendous opportunities<br />
in the media marketplace, with the rise of ad exchanges, analytics<br />
and marketing platforms, to do just that. We’re merely scratching<br />
the surface of what’s possible.<br />
Finally, efficiency alone won’t move business forward forever.<br />
When I meet with CMOs, CIOs and CEOs around the world,<br />
I continue to hear a call for innovation and see an ever-present<br />
search for sources of incremental revenue. Marketers and<br />
business leaders once tasked with spending budgets efficiently<br />
are increasingly challenged with identifying new sources of growth,<br />
as well as product enhancements.<br />
The truth is, building an agency that fires on all cylinders — high<br />
levels of creativity, innovation, efficiency and technology — is a<br />
tremendous challenge. But it’s what agencies and great marketing<br />
organizations will need to do to survive in the face of change.<br />
Which brings me back to the Razorfish Outlook Report. I think<br />
you’ll find it to be a little less theoretical and a bit more practical<br />
than in years past. Why? Aren’t digital agencies supposed to be<br />
the predictors of the digital future? There’s nothing wrong<br />
with dreaming big, but first and foremost, in our view the next<br />
12 months will be about doing.<br />
We’re not just talking about the social media explosion, but<br />
also scaling an organization and agency partners to execute<br />
on a strategy. Not simply checking the boxes of media best<br />
practices, but leveraging every tool available to plan, buy<br />
and measure its effectiveness. Not just accepting the product<br />
experience as it exists today, but using technology to improve<br />
customer experience. Not just ideation, but also execution.<br />
As we publish the Outlook Report, we hope it will inspire you<br />
to think and act. It’s what we mean when we say Ignite.<br />
Bob Lord<br />
Global CEO<br />
@RWLORD<br />
OUTLOOK REPORT | VOL 10<br />
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WRITTEN BY<br />
The Razorfish Media Team<br />
SPEND ANALYTICS PROVIDED BY<br />
READ MORE<br />
Thomas Sudassy<br />
Media Research<br />
and Publisher Relations<br />
LINKEDIN.COM/IN/SUDASSY<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
The Year in Media<br />
Here’s our annual look at Razorfish ad spend, along with the results<br />
of our media team poll to identify the “Best of the Web” and trends<br />
for 2012. As we’ve done in the past, we polled the Razorfish media<br />
team to discover the “Best of the Web,” asking a variety of different<br />
questions to get a directional perspective of upcoming trends.<br />
The questions revolved around creativity, performance, quality<br />
and overall general satisfaction.<br />
The past year in digital media was heavily influenced by the rapid adoption of new<br />
channels like tablets, the explosive growth of new consumer platforms like Twitter<br />
and new innovations in media buying such as ad exchanges. Overall, investments<br />
in digital continue to grow year-over-year, playing an increasingly critical role in<br />
our clients’ marketing plans. Consumer migration to digital media, the emergence<br />
of new media powers and the sophistication of performance metrics made the<br />
year in media one of the most dynamic in decades.<br />
Ad spend in review<br />
Razorfish ad spend is projected to grow by more than 25 percent in 2011, marking<br />
the third consecutive year of more than 20 percent growth in overall ad spend for<br />
the agency. The growth is a result of success in new business and from increased<br />
investment from long-standing clients. After just two years, Publicis Groupe has<br />
proven to be a great fit for Razorfish and our clients.<br />
Now more than ever, the function of media planning is about understanding consumer<br />
behaviors and needs — and how to craft experiences that deliver on the opportunities<br />
OUTLOOK REPORT | VOL 10<br />
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Content is media.<br />
Yearly media billings<br />
index<br />
200<br />
150<br />
100<br />
50<br />
0<br />
presented by those evolving behaviors. This is fundamentally<br />
different than simply accumulating reach and exposure through<br />
mass media. Our paid media spend was distributed across five<br />
main channels, illustrating the increasing complexity faced by<br />
clients and digital marketing teams.<br />
A closer look at the distribution of ad spend reveals several<br />
emerging trends:<br />
the Year in media<br />
2008<br />
2009<br />
2010<br />
2011(e)<br />
Spend<br />
4% 4%<br />
13%<br />
43%<br />
43%<br />
36%<br />
36%<br />
4%<br />
4%<br />
1. Growth in ad exchanGes<br />
search<br />
disPLaY<br />
MoBiLe<br />
sociaL<br />
networKs/exchanGes<br />
Razorfish has been active in buying through ad exchanges<br />
since the early days of auction-based display media. We were<br />
one of the first agencies to launch a trading desk to directly<br />
access the growing pool of inventory and have continued<br />
to be at the forefront of data integration through the creation<br />
of client-side data mart solutions, now commonly referred<br />
to as DMPs.
Our continued expansion into the auction-based media<br />
marketplace has resulted in tremendous benefits for our clients<br />
in terms of more effective pricing, better targeting and stronger<br />
ROI overall. As we continue to grow and expand our efforts in<br />
this area, we will be focused on integrating first- and third-party<br />
data to build the most sophisticated targeting offering possible.<br />
These efforts will, of course, be balanced by the industry’s<br />
important and ongoing efforts to provide sound self-regulation<br />
around data management and privacy.<br />
Our investment in ad exchanges grew by 66 percent in 2010<br />
and is projected to grow again by more than 60 percent<br />
in 2011. Even with that growth, there is still plenty of upside<br />
in this category since it represents less than 10 percent of our<br />
total ad spend.<br />
Total spend in ad exchanges<br />
index<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
2009<br />
= totaL sPend<br />
2010<br />
2. consoLidation oF PUBLisher Partners<br />
2011<br />
The emergence of new technologies and consumer channels<br />
continues to provide opportunities for the emergence of new<br />
publisher partners. In 2010, we purchased media across 598<br />
sites, down from a high of 1,832 in 2007. While we expect<br />
many of those buys to be consolidated through the growth<br />
of audience buying across ad exchanges, we still see the<br />
need to test new platforms and technologies.<br />
Number of publishers vs. number of media partners<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
1,832<br />
2007<br />
totaL<br />
sPend<br />
1,024<br />
2008<br />
However, we have continued to increase our concentration<br />
on fewer and more strategic partners. This focus on more<br />
complex, strategic partnerships has resulted in strong benefits<br />
for our clients in terms of scale, price, innovation and access.<br />
The breakout of our spend shows that 55 percent of our<br />
aggregated budget goes to our top five strategic partners,<br />
25 percent to the next 32 largest partners and the remaining<br />
20 percent in our long tail of 584 publisher partners.<br />
Spend breakout<br />
nUMBer oF<br />
PUBLishers<br />
692<br />
2009<br />
598<br />
2010<br />
taiL<br />
BodY<br />
strateGic<br />
OUTLOOK REPORT | VOL 10<br />
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3. increased investMent in Paid sociaL Media<br />
The rapid rise of social media has impacted digital and our<br />
clients’ business in many ways. As social media platforms<br />
continued their explosive growth in the last year to reach<br />
massive scale, leading marketers adjusted their plans<br />
accordingly to begin a two-way dialogue with current and<br />
potential customers.<br />
This has led to the emergence of Facebook as a leading<br />
partner in paid media for Razorfish in the last year. Since our<br />
early tests and inclusion in Facebook media programs in 2008,<br />
the social network has gone from being in the lower tier of our<br />
top 200 publisher partners to catapulting to one of our top five<br />
media partners (as measured by total spend). The growth can<br />
mostly be attributed to the fact that Facebook has innovated<br />
in terms of media offerings and that these new opportunities<br />
are helping our clients meet their marketing goals. Facebook’s<br />
growing audience makes it a platform that our clients need<br />
to include in the development of their marketing plans. Our<br />
projections for 2011 point to continued growth and show no<br />
evidence that the rise of paid media on Facebook will slow down.<br />
the Year in media<br />
4. shiFt FroM Paid to earned and owned<br />
The scale of leading social media platforms such as Facebook,<br />
Twitter and YouTube had a strong influence on the overall<br />
marketing mix for our clients. However, the overall amount<br />
of dollars invested against social media still pales in comparison<br />
to search and display. The advertising models of these emerging<br />
media titans are still evolving, but they will undoubtedly garner<br />
a growing share of marketing dollars.<br />
In addition, the investment in social media management on<br />
third-party and owned platforms is not to be overlooked. The<br />
vast majority of our clients now have earned and owned media<br />
strategies to complement their paid media strategies. Over the<br />
last year we’ve seen tighter coordination between the paid,<br />
earned and owned channels. We now manage relationships with<br />
close to 10 million fans and followers on behalf of our clients, not<br />
including audiences on Web sites and microsites that we manage.<br />
That’s roughly nine times what we managed just a year ago.<br />
Our research into social media analytics has given us great<br />
insight into the impact and the amplification effect of earned<br />
and owned media. As we continue to refine our practices, we<br />
fully expect that investments in content and relationships will<br />
continue to grow rapidly.
“Best of the Web”<br />
Most innovation in Media oPPortUnities<br />
PreFerred MoBiLe Partner<br />
5. acceLeratinG Growth in MoBiLe<br />
Our mobile media and search business nearly doubled last year<br />
and represented close to 10 percent of our total paid media<br />
business. The major factors that affected this accelerating<br />
investment represent trends that will continue to make mobile<br />
one of the fastest growing categories:<br />
increase in MoBiLe transactions. Our clients are investing<br />
in fully functional mobile experiences where consumers can start<br />
to transact and purchase in the mobile channel. While mobile<br />
commerce is still small and nascent, mobile is becoming an<br />
important touch point in the consumer experience. As marketers<br />
increase the quality and quantity of mobile experiences, the<br />
mobile media and search spends will follow. For example, one<br />
of our clients is seeing pay-per-call increasingly drive significant<br />
scale and ROI.<br />
Growth oF taBLets. The proliferation of tablets in the marketplace<br />
is creating an entirely new channel. As consumers increase their<br />
consumption of media on tablet devices, it will provide a scaled<br />
medium for advertisers to reach their audience. Innovations in<br />
tablet computing will lead to advertising opportunities that differ<br />
significantly from those on PCs or phones. The ability to bring<br />
Best coLLaBoration<br />
PreFerred video Partner<br />
Partner where we Most want to sPend<br />
MoneY, BUt can’t FiGUre oUt how<br />
Most consistent PerForMance<br />
(advertisinG.coM)<br />
touch interactivity together with sound, sight and motion will enable<br />
marketers to provide new, rich experiences to their customers.<br />
aLwaYs-on Phones. Multitasking with mobile while watching<br />
TV is driving higher consumption of mobile media and providing<br />
new opportunities for marketers to engage with their audience.<br />
Razorfish conducted a study in collaboration with Yahoo! to<br />
understand consumer behaviors and marketing opportunities<br />
across multiple screens. One of the conclusions from our research<br />
is that mobile is emerging as an indispensable activation vehicle<br />
for the massive investments in TV advertising. The complete<br />
details of the study are covered later in the Outlook Report.<br />
“Best of the Web” — A planner’s perspective<br />
As we’ve done in the past, we polled the Razorfish media<br />
team to discover the “Best of the Web.” We asked a variety of<br />
different questions to get a directional perspective of upcoming<br />
trends. The questions revolved around creativity, performance,<br />
quality and overall general satisfaction.<br />
Some of the “Best of the Web” results are listed in the<br />
graphic above.<br />
OUTLOOK REPORT | VOL 10<br />
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Razorfish ad spend is projected to<br />
grow by more than 25% in 2011, marking<br />
the fourth straight year of 20%+ growth<br />
in overall ad spend for our agency.<br />
Themes that will shape the next year in media<br />
There is no doubt that digital media continues to be the most<br />
dynamic and innovative sector in marketing. One of the byproducts<br />
of the rapid pace of change in digital media consumption is the<br />
constant struggle for the industry to evolve traditional delivery<br />
models. Over the next 12 months, agencies must focus on<br />
adapting to the proliferation of new consumer behaviors and<br />
new marketing tactics. In particular, next year will be dominated<br />
by challenges such as how to manage video across multiple<br />
screens, how to rapidly incorporate changes in social media,<br />
how to plan in a cross-platform landscape and how to scale<br />
mobile advertising.<br />
While those trends will certainly dominate the conversation<br />
around media and marketing, it’s our perspective that there<br />
are also four major themes that will work to reshape digital<br />
media in the next year.<br />
1. content as Media<br />
Most marketing professionals admit to having been in a vigorous<br />
debate sometime in the last year about the classification of a<br />
particular tactic as paid, earned or owned media. The construct<br />
the Year in media<br />
is very useful in helping marketers broaden thinking around<br />
marketing strategies. But perhaps the real value is in helping<br />
reinforce the notion that content is media. And content can exist<br />
in many forms. The notion that agency planners are responsible<br />
for content leads to strategies and plans that can have a much<br />
greater impact. In the next year, progressive marketers will<br />
be the ones that begin to integrate all their brand assets into<br />
a single communication platform, creating a unified brand<br />
experience that puts the needs of the consumer at the center.<br />
2. data ManaGeMent<br />
In the last five years, we’ve increased the amount of data that<br />
we manage in our own servers from 3 terabytes to 90 terabytes.<br />
The ability to manage large and complex data sets has shifted<br />
from being a core differentiator to an absolute requirement.<br />
Data sources are more vast and complicated than ever.<br />
Building a single view of the consumer across all channels is<br />
the only way that marketers can truly build effective marketing<br />
programs. More than 80 percent of our media clients rely on<br />
a data management platform that we have custom built to make<br />
their digital marketing more targeted and more effective. Over<br />
the next year, these platforms will continue to become more
sophisticated, taking into account an increasing number of data<br />
sources. Data management pays off for marketers — we’ve<br />
been able to improve return on ad spend more than five times<br />
by serving personalized ads to dynamic segments enabled<br />
by a unified marketing database.<br />
3. reaL-tiMe BUYinG<br />
In the last year, we have more than tripled the number of realtime<br />
impressions we’ve purchased. On average, we’ve seen<br />
performance improvements of more than 40 percent for our<br />
clients. The real-time nature of digital data has simply changed<br />
the way we buy media. Those who are able to understand data<br />
and act upon it immediately — in real time — have a strategic<br />
advantage over their competitors. Long gone are the days<br />
when companies and their agencies could buy media months<br />
in advance, then wait several more months to understand<br />
how those media investments performed. Today, agencies<br />
and brands have seconds in which they must respond, or<br />
potentially leave millions on the table in lost value. Brands need<br />
partners who can collect, translate and take action on that data<br />
in real time. Agencies that are well-versed in bid-management<br />
systems, and that invest in the tools and processes to manage<br />
those systems, will become industry leaders. The real-time<br />
and highly complex nature of digitized media allows marketers<br />
to develop a sustainable competitive advantage.<br />
4. attriBUtion<br />
For the last decade, we’ve been building attribution models<br />
for our clients to help them invest their marketing spend<br />
more effectively. In the pioneering days, this type of analysis<br />
was done infrequently and was limited in breadth and scope.<br />
Today, with the data and processing infrastructure we have<br />
invested in over the last 10 years, and the growth of the<br />
marketing analytics group to more than 100 professionals,<br />
we are actively building these kinds of models for our clients<br />
on a regular basis. In fact, we’ve seen return on ad spending<br />
improve by as much as 3.5 times through smarter allocation<br />
of media investments. While it’s a discipline that demands<br />
constant iteration and analysis, that type of improvement<br />
makes attribution modeling a crucial strategy for marketers.<br />
OUTLOOK REPORT | VOL 10<br />
13
WRITTEN BY<br />
WITH CONTRIBUTOR<br />
READ MORE<br />
Jeremy Lockhorn<br />
VP, Emerging Media<br />
@NEWMEDIAgEEK<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
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Forget Mobile —<br />
Think Multiscreen<br />
As is the case with many new technologies, consumers are moving<br />
faster than brands. They’re already using smartphones and tablet<br />
devices in front of the TV to communicate with friends and family,<br />
look up information related to the show they are watching, or else<br />
surf content that is completely unrelated to what’s on the big<br />
screen. Razorfish partnered with Yahoo! to conduct a study<br />
to better understand this rapidly evolving consumer behavior<br />
and to provide guidance for how marketers should approach<br />
the corresponding opportunity.<br />
Mobile devices are used frequently in conjunction with other screens, including<br />
the big TV in your living room. Anyone who has ever tapped out an email on their<br />
iPhone, while checking a score on the VAIO balanced on their lap, while keeping<br />
an eye on American Idol on their 40-inch BRAVIA knows this. Yet many marketers<br />
today are ignoring this ubiquitous consumer behavior as they over-focus on mobile<br />
as a stand-alone medium.<br />
Media multitasking is not a new thing, of course. People have used laptops in front<br />
of the TV since… well, probably since the first laptop entered someone’s home.<br />
We’ve seen data on this behavior for years, and yet, beyond putting a URL on<br />
screen or asking people to “like” a brand on Facebook, most TV spots don’t<br />
acknowledge or attempt to capitalize on the fact that the consumer is watching<br />
with a Web-enabled device on their lap or in their pocket.<br />
At a minimum, multitasking adds another layer of complexity to the evolution of<br />
media measurement. At most, it’s a massive disrupter to television, the medium<br />
that receives the most ad spending. DVRs threw the industry for a loop, and<br />
OUTLOOK REPORT | VOL 10<br />
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16<br />
C3 ratings were born to begin to address a world where the<br />
consumer is increasingly in control. 1 Now, add mobile and tablet<br />
multitasking to the mix and marketers everywhere wrestle with<br />
measuring the latest evolution in consumer TV viewing behavior.<br />
On one hand, there is a potential distraction factor with<br />
connected devices, and on the other, there is a much more<br />
engaged viewer who is passionately chasing down more content<br />
on devices beyond the TV. How do marketers account for that<br />
with Gross Rating Points (GRPs) and Target Rating Points (TRPs)?<br />
We don’t yet have a clear answer — give us six months —<br />
but most marketers seem to be ignoring the question and<br />
failing to capitalize on the corresponding opportunity created<br />
by mobile multitasking.<br />
Which leads us to this: Lots of data has been published about<br />
the fact that consumers are using mobile and tablet devices<br />
while watching TV, but little of it has gone deep enough to be<br />
really useful in planning a multi-screen strategy. So Razorfish<br />
of respondents are<br />
mobile multitasking<br />
while watching TV.<br />
1 “C3” TV Ratings Show Impact of DVR Ad Viewing,” blog.nielsen.com, October 14, 2009, http://blog.<br />
nielsen.com/nielsenwire/media_entertainment/c3-tv-ratings-show-impact-of-dvr-ad-viewing/.<br />
fOrGet mOBiLe — think muLtiscreen<br />
partnered with Yahoo! to conduct a survey among Web-enabled<br />
phone owners with the goal of better understanding this rapidly<br />
evolving consumer behavior and providing some guidance<br />
for how marketers should approach them.<br />
We found that a stunning 80 percent of respondents are mobile<br />
multitasking while watching TV. Below are some highlights and<br />
key implications for marketers.<br />
MoBiLe MULtitasKinG is addictive. 70 percent of respondents<br />
who multitask do so at least once a week, with nearly half (49<br />
percent) reporting everyday multitasking. Furthermore, during<br />
the course of a TV program, more than 60 percent check their<br />
phones at least “once or twice,” and 15 percent stay on the<br />
mobile Web for the full duration of the show.<br />
MULtitasKinG is Both an enhanceMent and a distraction.<br />
An equal percentage of multitasking respondents (38 percent)<br />
agreed or strongly agreed with these statements:
• Using the Internet on my mobile or tablet device while<br />
watching TV enhances my viewing experience.<br />
• I find using mobile devices while watching TV<br />
to be distracting.<br />
This seems to be an opportunity for content producers and<br />
advertisers alike. Some people find multitasking to be a boon,<br />
and we have only begun to scratch the surface in terms<br />
of providing an engaging dual-screen experience. It’s like the<br />
early days of smartphones where it was remarkable that people<br />
were making purchases from sites that were not mobile-optimized.<br />
If folks were willing to go through that much effort, it stands to<br />
reason that making the experience easier and more streamlined<br />
will lead to even more passionate participants.<br />
certain ProGraMMinG Genres Lend theMseLves to<br />
MULtitasKinG. The top five categories that attract<br />
multitaskers are:<br />
1. Reality 2. News 3. Comedy 4. Sports 5. Food<br />
While the top results may not seem surprising, what struck us<br />
about the results further down the list were that drama edged<br />
out genres like talk shows, music videos, how-to and others.<br />
We thought drama and action/adventure shows would be less<br />
likely to see multitasking behavior. Perhaps these intense<br />
programs stoke multitasking as viewers get hooked and seek<br />
ways to further immerse themselves in the show’s world. Think<br />
about Breaking Bad, CSI, Dexter or True Blood — those shows<br />
are intense but they also beg viewers to dig a few levels deeper<br />
than what happens during those weekly 40-plus minutes.<br />
coMMUnication and content are the Main drivers For<br />
MULtitasKinG. 94 percent of multitaskers engage in some kind<br />
of mobile communication. In order — text, talking, email, social<br />
networking and IM. It’s somewhat surprising to see talking<br />
so high and social networking so low; we expected the reverse.<br />
On the content side of things, 60 percent of multitaskers<br />
are accessing additional content of some type. 44 percent<br />
is unrelated to what’s on TV versus only 38 percent related to TV.<br />
Clearly there can be a distraction factor here when it comes to<br />
TV commercial time, but the good news for marketers is that 36<br />
percent of multitaskers use their connected devices for looking<br />
up information on a commercial they just saw.<br />
tv ad tiMe = MoBiLe PriMe tiMe. TV ad breaks are triggers for<br />
multitasking because phones and tablets are, not surprisingly,<br />
more likely to get fired up and accessed during regular<br />
commercial pods. And, our survey respondents were more likely<br />
to state that they frequently engaged in multitasking during<br />
ad breaks. What people do during this time doesn’t change all<br />
that much. It’s still communication first and content second.<br />
An analysis of mobile Web traffic to the Yahoo! homepage<br />
during this year’s Academy Awards broadcast indicated clear<br />
spikes in traffic during TV ad breaks.<br />
connected devices add FUeL to the Fire oF sPorts FandoM.<br />
Almost half of respondents reported multitasking during sporting<br />
events, with little difference shown between live or pre-recorded.<br />
In fact, even when attending a live sporting event in person,<br />
more than a third can’t stay away from their devices. Another<br />
key difference between sports and other genres is that with<br />
sports, people are driven more by content than by communication<br />
(recall it was the other way around overall). Texting still rules, but<br />
after that, other communication styles drop off — and various<br />
content rises to the top. Leading behaviors include checking<br />
scores and schedules of other games, and looking up team<br />
and player information or statistics. Smack talking showed up<br />
surprisingly low (20 percent) — maybe that’s because it’s not<br />
as rewarding when you can’t see the look on the other guy’s<br />
face — this feels like an opportunity for an inventive developer<br />
(or enterprising marketer).<br />
Again, an analysis of Yahoo! mobile traffic confirmed that with<br />
sports content (in this case, World Cup 2010 and Super Bowl<br />
2011), commercial breaks spark mobile usage. Even bigger<br />
spikes are seen at halftime and after the games. For example,<br />
during the Super Bowl halftime show, Yahoo! Sports saw a 305<br />
OUTLOOK REPORT | VOL 10<br />
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18<br />
percent increase in mobile traffic. After the game, even more<br />
users flooded the sports section, pushing overall increase up<br />
387 percent. And, not surprisingly, Yahoo! saw massive spikes<br />
in mobile search traffic related to TV spots, including several<br />
movies and automobile manufacturers.<br />
Implications for marketers<br />
YoUr tv content strateGY MUst evoLve (aGain). It used to<br />
be relatively easy. Crank out a few 30-second spots and call<br />
it a day. But then came the Web, video on demand, basic<br />
interactive TV capabilities and so forth. Most marketers are<br />
still struggling to figure out how to truly capitalize on the<br />
opportunities represented by long-form video and — more<br />
recently — social content. Now, a new imperative is clear,<br />
especially for those spending heavily on TV. Content and<br />
experiences that move seamlessly from one screen to another<br />
are an absolute must. This is bigger than simply having<br />
a mobile- or tablet-optimized Web site. It means a cohesive<br />
communications strategy where the spots and the experience<br />
on mobile devices work together and build toward a greater<br />
whole. It means a mobile-optimized site that knows what’s<br />
fOrGet mOBiLe — think muLtiscreen<br />
Content and experiences<br />
that move seamlessly<br />
from one screen to another<br />
are an absolute must.<br />
happening in the TV spots, and perhaps even what’s happening<br />
in the current program — especially if it’s live. At a bare minimum,<br />
it’s time to consider what kind of mobile call to action may be<br />
appropriate in the brand’s TV spot.<br />
Pepsi, Old Navy and Heineken have begun experimenting here.<br />
Pepsi gave away a free bottle of Pepsi Max to users who tagged<br />
the commercial using IntoNow, a Yahoo! social tool that allows<br />
you to share what you’re watching with your friends. Old Navy’s<br />
“Old Navy Records” campaign encourages users to tag spots<br />
with Shazam to unlock related content like the featured looks,<br />
and even download the music tracks for free. Heineken’s Star<br />
Player app gives users the chance to play along with soccer<br />
matches by attempting to predict which team will score within<br />
the next 30 seconds. These efforts begin to show the possibilities,<br />
but are only scratching the surface.<br />
MoBiLe search is aBoUt More than LocaL. There’s no doubt that<br />
local search is very important. After all, mobile users are accessing<br />
local search 34 percent more than they were a year ago, according<br />
to research from comScore and the Local Search Association.<br />
But, with the massive amount of multitasking behavior highlighted<br />
here combined with the various studies suggesting that anywhere<br />
from 30-40 percent of mobile data usage happens at home, mobile
search isn’t exclusively about finding the closest taco joint.<br />
Marketers must reconsider their search strategies. At a minimum,<br />
they need to ensure that their mobile properties are properly<br />
positioned in organic results. It may also be worth re-evaluating<br />
the keywords they’re bidding on, perhaps to include terms that<br />
link the brand to shows and events they’re sponsoring.<br />
Let’s take an automotive company launching a new luxury sports<br />
sedan, for example. Part of the launch is sponsorship of a live<br />
awards show — several spots appear throughout the show and<br />
the celebs hitting the red carpet arrive in the new vehicle.<br />
Bumpers include “sponsored by” mentions and on-screen<br />
logos. The spot closes with a URL. Some viewers might jump<br />
to their phones, fire up the browser and enter the URL.<br />
But a good portion of them will also take what they perceive<br />
to be a shortcut: typing the brand’s name into a search box.<br />
Organic and paid results should appear and direct a relevant<br />
experience — perhaps the site’s homepage temporarily features<br />
the new model as well as content related to the awards<br />
program. Perhaps the red carpet reporter films a walk-through<br />
of the vehicle, and that video is made available. To drive even<br />
more traffic and engagement, the brand could bid on search terms<br />
relevant to the awards show (and popular gossip sites). The call<br />
to action could be something along the lines of “See your favorite<br />
celebs arriving in the new XYZ car,” linking through to a series<br />
of videos and also featuring the red carpet reporter’s overview.<br />
connected devices are the new water cooLer. People aren’t<br />
waiting until the next day to discuss what happened on their<br />
favorite program anymore — it’s happening in real time now,<br />
via text, email and social networking sites/services. Brands can<br />
ride along here as well, but it requires a smart social strategy<br />
that syncs the brand with the programs they’re sponsoring.<br />
It’s not easy, but with more than half of multitaskers getting<br />
active on social networks during TV viewing, there is a massive<br />
opportunity to engage the audience on a new platform.<br />
In the automotive example above, there are several ways<br />
the brand might get involved in the real-time discussion.<br />
Aggregating Twitter feeds on their homepage, for example, allows<br />
users to explore the new sedan while staying connected. Perhaps<br />
sponsored tweets could go out from a few celebs talking about<br />
how much they liked the ride in the car. The brand’s social network<br />
presences could all be talking about the show, perhaps launching<br />
real-time polls asking users to predict who will win the next<br />
category. And so on.<br />
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MULtitasKinG MiGht FinaLLY KiLL (or at Least reinvent)<br />
the GrP. The GRP debate rages on. The metric that has been<br />
the currency of the offline world for decades has tried time<br />
and time again to enter the digital world, only to be beaten back<br />
by legitimate arguments that it doesn’t accurately account for<br />
different levels of engagement, among other weaknesses.<br />
But here’s the remarkable thing about multitasking —<br />
increasingly, the devices are going to know what people are<br />
watching, providing a potentially more accurate view into what<br />
fOrGet mOBiLe — think muLtiscreen<br />
Connected<br />
devices are the<br />
new water cooler.<br />
large groups of people are tuning into. And, with so much<br />
brand engagement happening on these connected devices,<br />
effectiveness of spots may also be more accurately measured.<br />
Lastly — and this is the silver bullet — with massive growth<br />
expected in mobile payments and mobile wallets, the same<br />
device that knows what people are watching and what people<br />
are surfing will soon know what they’re buying, creating<br />
the ideal closed loop for ROI-driven marketers. And who<br />
isn’t ROI-driven these days?
By Frederic Bonn<br />
<br />
<br />
And<br />
you re<br />
satisfied<br />
with that?<br />
<br />
Are<br />
you in<br />
denial<br />
?<br />
So you’d<br />
actually<br />
rather work<br />
with multiple<br />
agencies?<br />
<br />
Do you rely on more than one agency<br />
to handle your communications and<br />
marketing?<br />
<br />
<br />
Is that single agency capable of mastering<br />
integrated communications from social<br />
media to mobile, event planning to media<br />
buying, TV to digital?<br />
And you have operational<br />
flexibility and scale?<br />
<br />
<br />
<br />
<br />
And they provide<br />
ground-breaking<br />
creative ideas<br />
that deliver great<br />
results?<br />
<br />
<br />
<br />
Do you want a<br />
consistent<br />
communication<br />
platform that<br />
works across all<br />
channels and is<br />
relevant to the<br />
consumer<br />
behavior in<br />
each?<br />
<br />
<br />
<br />
Do you believe<br />
consumers only<br />
experience your<br />
brand via one<br />
media channel?<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Do you have one lead agency creating<br />
ideas while the others simply follow?<br />
<br />
<br />
<br />
<br />
Have you defined your individual<br />
agencies’ roles and responsibilities?<br />
And they never try to<br />
compete anyway?<br />
Do you want your agencies<br />
to successfully collaborate?<br />
Your lead agency is probably the “traditional”<br />
agency, right? Great, you now have a 30<br />
second spot (or 60) and some print ads.<br />
Did you develop an integrated brief that<br />
incorporates all agencies, teams and<br />
disciplines involved in your business?<br />
Do your teams meet regularly<br />
to develop an integrated brand<br />
strategy and campaigns?<br />
<br />
<br />
<br />
<br />
Do you know how most<br />
agencies operate?<br />
<br />
<br />
<br />
Here's a little more about how<br />
agencies think.<br />
They all love what they do,<br />
but their love is blind.<br />
Agency A thinks that Agency B is<br />
clueless about digital, even though<br />
Agency B said they had videos on<br />
YouTube — “That’s digital, right?”<br />
B dismisses A’s ideas because A<br />
doesn’t know anything about the<br />
brand, but come on, A had a video<br />
on YouTube, too! — “That’s brand<br />
building, right?!”<br />
A and B think C should just follow<br />
what they say — “Wait, you didn’t<br />
get our memo?”<br />
And D should just buy what they<br />
all need — “Because we’ve<br />
already figured it out.”<br />
<br />
<br />
<br />
<br />
<br />
<br />
OUTLOOK REPORT | VOL 10<br />
21
WRITTEN BY<br />
WITH CONTRIBUTOR<br />
READ MORE<br />
Pete Stein<br />
President, East<br />
@pStEIN211<br />
Frederic Bonn<br />
Executive Creative Director<br />
@fREDERICbONN<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
A Wake-Up Call<br />
for Collaboration<br />
The ability to integrate creative, media and technology to meet<br />
the demands of your always-on consumer is ideal. However, most<br />
traditional lead agencies don’t have those capabilities just yet, nor<br />
are most digital agencies prepared to handle lead agency duties.<br />
Coordination of your agencies is not enough — you need to move<br />
more aggressively toward true collaboration. We’ve identified five<br />
big barriers to essential agency collaboration.<br />
People now consume 12 hours of media in just 9 hours of elapsed time, according<br />
to a recent Harvard Business Review study. 1 Consumers use a lot of media types<br />
all at once and now brands need to catch up. To do so, marketers must change<br />
how they work with their agencies.<br />
If you are a CMO or a brand leader, you are probably using multiple agencies<br />
to meet the demands of your always-on consumer. A lead agency that can integrate<br />
creativity, media and technology would be a great solution, but traditional lead<br />
agencies aren’t yet capable. In 2009, Forrester Research set off a mini industry<br />
tempest when it reported that only 23 percent of interactive marketers felt<br />
traditional agencies were equipped to handle interactive marketing work. 2 Fast<br />
forward two years and Forrester still reports that only 30 percent of those surveyed<br />
use their traditional agencies for digital marketing, and in fact 68 percent of those<br />
marketers work with two or more agencies. Some reportedly have more than 15<br />
1 “How Internet Junkies will Save Television,” Harvard Business Review, http://hbr.org/web/extras/<br />
how-internet-junkies-will-save-television/4-slide.<br />
2 Sean Corocan, “The State of Interactive Agencies,” Forrester, December 7, 2009.<br />
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agencies on their interactive rosters. 3 By the same token, most<br />
digital agencies aren’t yet ready to handle lead agency duties. In<br />
three to five years, the landscape will look different, but for now<br />
marketers have to deal with a patchwork of agencies that are<br />
channel specialists and all the complexity that comes from that.<br />
What can you do now to drive the integration of creativity,<br />
media and technology that you need to truly engage consumers?<br />
Coordination of agencies is not enough — you need to move<br />
more aggressively toward collaboration. And guess what?<br />
Agency folk want more collaboration — or at least they claim<br />
they do.<br />
So, what are you waiting for? If you are a CMO or brand leader<br />
and you’re not pushing your agencies for deep collaboration,<br />
you’re missing out on a big opportunity.<br />
3 Sean Corocan, “How to Optimize your Interactive Agency Roster,” Forrester, May 27, 2011.<br />
a Wake-up caLL fOr cOLLaBOratiOn<br />
Coordination of agencies<br />
is not enough — you need<br />
to move more aggressively<br />
toward collaboration.<br />
We have seen five big barriers to collaboration:<br />
1. cLient exPerience/conFidence<br />
As a brand marketer, you probably have more confidence<br />
in one area of the marketing mix or the other. Perhaps you are<br />
a digital native who lives and breathes ones and zeroes, and now<br />
you’ve been promoted to look after the whole mix. Or maybe<br />
you’re a “traditional” marketer with a strong legacy of brand<br />
building, but you’ve had your run with TV commercials.<br />
You find digital exciting, but daunting and maybe even a bit<br />
over-hyped. Wouldn’t life be better if your agencies were<br />
bringing truly integrated ideas to you?<br />
2. cULtUraL inertia<br />
Success can dull the competitive edge. We have seen many<br />
marketers and their agency teams not adapt fast enough because<br />
they haven’t had to. Sometimes a great track record can put you
in a position for future failure. Similarly, agencies, particularly<br />
account people, are protective of their turf. Unless they feel<br />
their piece of the pie is protected, change will be difficult.<br />
3. aBove-the-Line aGencY snoBBerY<br />
Some above-the-line agency teams believe that: 1) digital agencies<br />
don’t have anything of value to contribute to the conversation,<br />
or that 2) their team is already leading the way in digital.<br />
4. diGitaL aGencY Lives in a diGitaL BUBBLe<br />
Digital agency teams tend to fall down in two places: 1) they<br />
don’t fully respect the power of offline communications, or<br />
2) they aren’t able to lift out of the tactical and into the strategic,<br />
and they fail to put their work in this broader strategic context.<br />
This leads clients and above-the-line agencies to keep them<br />
in their digital silo.<br />
5. cLient siLos<br />
Clients are often organized into silos that make it very difficult<br />
to plan with a focus on how the consumer and the brand should<br />
engage. There are different client owners for traditional creative,<br />
digital creative, media, PR and other elements of the mix, too.<br />
When agencies report into different silos, true collaboration will<br />
not occur.<br />
Despite these barriers, we have had success with our clients<br />
and our agency partners. We recently formalized our partnership<br />
with BBH at Unilever, a client with whom we’ve had a lot<br />
of success rethinking the model. Here are some lessons we’ve<br />
learned on getting the best work out of the right people:<br />
estaBLish the Process. In order to get the most out of each<br />
agency, make sure you define a clear process for them to work<br />
together. You need to clarify the boundaries of their engagement,<br />
expectations and ownership. One exercise we went through<br />
with a partner agency was to play the “what if” game. We talked<br />
through all of the worst-case scenarios we could imagine<br />
and how we would handle them when things went wrong.<br />
It was a fun game and a great way to talk through problems<br />
in an environment where emotions weren’t running high. While<br />
you’re at it, examine your own organization. Agencies tend<br />
to organize around their clients, so if your organization is siloed,<br />
it’s likely that your agencies will be, too. Even if you don’t<br />
change your structure, make sure your organization is aligned<br />
and not operating in silos defined by channel.<br />
deMand creative and Media coLLaBoration. Creative<br />
collaboration starts with a solid brief delivered to all agencies<br />
simultaneously. Unearthing an insight that reflects true audience<br />
behaviors is critical to crafting a relevant message, no matter<br />
who makes it or when it’s launched. The brief needs to nail the<br />
business objectives, brand DNA and the digital behaviors —<br />
with the goal of tapping into the rituals that are ripe territory for<br />
the brand. We recently found that if we allow the above-the-line<br />
agency to own the brand DNA, we can own the digital behaviors,<br />
thereby making sure they are embedded into the ideas. This will<br />
enable your creative teams to come back with a true creative<br />
platform — not just a single execution that’s stretched across<br />
channels. One-hit television campaigns or social campaigns do<br />
not a platform make. Don’t settle for anything less than a robust<br />
creative platform. Huge bonus points if your media agency is<br />
part of the team. A successful channel plan is one that considers<br />
how to leverage each channel in a way that makes the whole<br />
greater than the parts. You’ll find that when media and creative<br />
teams work together, you’ll get deeper consumer engagement.<br />
And just to be certain that the ideas are inherently social and<br />
engaging, we have found it beneficial to include explanations<br />
in the brief. Use the brief to articulate why the insights point<br />
toward engagement.<br />
Protect coMPensation and Provide incentives that drive<br />
aLiGnMent. Incentives are a powerful lever that should be pushed<br />
to drive behavior. Agencies should be rewarded for collaboration.<br />
Ultimately they need to be rewarded for great work and business<br />
impact, but consider this to be part of a journey. They need to know<br />
that their piece of the business is protected. While strategy<br />
is shared, execution should be handled by channel experts so<br />
that change is managed gradually. In addition to giving agencies<br />
a safety net, give them a reason to jump higher. For one client<br />
we (us and the ATL agency both) receive a bonus if we help<br />
the client exceed key business targets.<br />
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KeeP a sLUsh FUnd. A key to successful marketing is figuring<br />
out how to integrate always-on and episodic (campaign-based)<br />
communications. Great creative platforms should have plenty<br />
of legs and should be responsive to consumer engagement.<br />
This creates a great opportunity for agency collaboration,<br />
but as the client you need to set aside some money in order<br />
to create relevant content or utilities that can stoke a fire that<br />
you may have created. When we created the Mercedes-Benz<br />
Tweet Race last year, we saw that there was a lot of curiosity<br />
about the tweet-powered vehicles. We jumped on the buzz<br />
and created a spoof video of German engineers driving cars<br />
with their mobile devices. It helped ignite a lot of interest.<br />
You need to start planning for what you can’t plan.<br />
create UrGencY. Without a substantial reason to change<br />
behavior, it will not change. You, the client, have the greatest<br />
a Wake-up caLL fOr cOLLaBOratiOn<br />
To get the most out of<br />
each agency, make sure you<br />
define a clear process<br />
for them to work together.<br />
ability to create urgency. You need to set a high bar. For instance,<br />
point to competitors or other brands that are doing it well.<br />
And you need to shift the risk. Tell your agencies that if they fail<br />
by trying something new and different, you will embrace it, but<br />
if they fail by not collaborating, it will be a strike against them.<br />
In the end, agency collaboration is rooted in something very<br />
fundamental — trust. Your agencies need to trust each other<br />
to produce great work. By setting up a clear process, demanding<br />
creative collaboration, and planning for the unplanned, you can<br />
go a long way toward setting up the structure and incentives<br />
that your agencies need to build trust amongst each other.<br />
With a solid foundation in place you can count on your<br />
agencies to do their job exceptionally well.
WRITTEN BY<br />
WITH CONTRIBUTORS<br />
READ MORE<br />
Mark Taylor<br />
VP, Customer Insight Group<br />
LINKEDIN.COM/IN/MARKChRIStOphERtAYLOR<br />
Marc Sanford, PhD<br />
Director, Customer<br />
Insight Group<br />
@MMSANfORD<br />
Pradeep<br />
Ananthapadmanabhan<br />
Chief Technology<br />
Officer, VivaKi<br />
LINKEDIN.COM/IN/pRADEEpANANth<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
It’s Time for<br />
Big Data to Improve<br />
Customer Experience<br />
Channel-based marketing is dead. The increased amount of data<br />
available at the individual consumer level, combined with the<br />
proliferation of cloud computing, have allowed savvy analysts<br />
and marketers to create a truly singular view of the consumer,<br />
regardless of touch point. This single view enables a truly<br />
enhanced consumer experience and more efficient use of client<br />
and agency resources for decision making. All the customer<br />
data out there is worthless if you can’t process it and turn it into<br />
actionable intelligence.<br />
Unfortunately, older data processing technologies (such as Relational Database<br />
Management Systems, or RDBMS) are simply not capable of processing data<br />
in volumes that the industry has collectively coined “Big Data” — volumes that<br />
are in terabytes/petabytes. As such, we position the consumer as the only real<br />
appreciating asset and we tie everything together through the use of Big Data.<br />
Awareness of the challenges of a multi-channel world is nothing new, but each<br />
channel touch point represents an immense opportunity for insight. An average<br />
Razorfish client has billions of customer interactions a year across paid, earned<br />
and owned channels. With so many opportunities for insight and learning, we<br />
create a 360-degree view of each individual in the database.<br />
Using integrated Big Data approaches, we are now informing the holistic data<br />
view to gain the fullest understanding of consumer interactions, intent and value<br />
possible. This current shift centers on how customer intelligence across channels<br />
is not just used for insights, but actioned at great velocity to power multi-channel<br />
targeting and personalization, made real through dynamic digital messaging.<br />
OUTLOOK REPORT | VOL 10<br />
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Paid<br />
Earned Owned<br />
Each touch point is an identifiable interaction<br />
and an opportunity to build value.<br />
From insight to action, we’re now finally implementing<br />
consistent and relevant messaging approaches that provide<br />
cohesive consumer experiences.<br />
In our experience, each client using Razorfish’s Big Data-led<br />
performance marketing approach takes a different path. Ultimately,<br />
a client’s path is based on business priorities and what information<br />
can be leveraged from the available tagging and data strategy.<br />
Working with different clients has enabled us to determine<br />
realistic roadmaps.<br />
Holistic integration benefits:<br />
• Common Data Marketing Platform (DMP) for reporting,<br />
analytics, targeting and media integration.<br />
• A channel and customer view of success.<br />
• Metrics that measure end to end, not just in parts.<br />
• Decision-making through actionable insights.<br />
• A common language for performance across different<br />
teams, brands and markets.<br />
it’s time fOr BiG data tO imprOVe custOmer experience<br />
Search<br />
Web<br />
Analytics<br />
Platform<br />
Social<br />
owned<br />
Paid<br />
earned<br />
razorfishoPen tM<br />
Email<br />
.com<br />
Display<br />
• Better use of the team’s time to focus on what matters<br />
most to their business.<br />
Mobile<br />
razorfish-<br />
OPEN TM<br />
AOD<br />
3rd PartY (AOR/Client/3rd Party)<br />
3rd Party<br />
Data<br />
Reporting<br />
Targeting<br />
Modular approach to platform and services, by fully<br />
integrating an organization’s owned, paid and earned<br />
channels for insights and targeting.<br />
Analytics<br />
Media<br />
Data enables us to understand customers and to manage<br />
contact and content strategy. Data is a core component of<br />
integrated marketing and, via an integrated approach, we can<br />
speak with a single voice across channels and lines of business.<br />
However, to succeed in a meaningful way at that level of<br />
customer centricity, we have to manage all that data in a way<br />
that holistically fuels customer engagement and experiences.<br />
That effort requires a whole ecosystem of people, processes<br />
and technology.<br />
Even the most sophisticated and modern businesses today are<br />
surprisingly ill equipped to manage even the most basic digital
marketing standards and activities, let alone jettison forward<br />
into the new world of Big Data techniques.<br />
Through a series of in-depth interviews and client experiences,<br />
Razorfish found a common set of fundamental challenges<br />
holding back meaningful data integration:<br />
• Fragmentation of efforts between different teams, tools and<br />
data sources across multiple channels, brands and regions.<br />
• Political and fiscal turf protection.<br />
• Multiple sales funnel constructs.<br />
• Inability to identify the customer.<br />
• Inability to quantify the value of customer experiences.<br />
Let’s take a closer look at how our approach to Big Data, using<br />
the razorfishOPENTM framework, can remedy these issues.<br />
Fragmentation<br />
We’re in an era where intelligent use of Big Data pays huge<br />
dividends. Implementing solutions that improve integration of<br />
data is very challenging and complex but not for the reasons<br />
There’s a new game in town —<br />
it’s cross-channel data<br />
management and marketing.<br />
you might think. Much of the technical and analytical challenges<br />
for tapping Big Data have been solved — but failures today<br />
often stem from attempting to use legacy small data solutions,<br />
internal politics, effort fragmentation and failure to manage the<br />
true value of Big Data-based solutions. While a lot of niche<br />
players using Big Data approaches have stepped up to solve<br />
parts of this challenge, building incremental capabilities in a silo<br />
can by default push you further into a silo-based culture and<br />
limit your understanding of the customer.<br />
Any holistic Big Data solution requires a scalable measurement<br />
plan and tagging strategy at its foundation so you can take into<br />
account performance marketing efforts across channels, tactics<br />
and disciplines, with a shared strategy of measurement and<br />
tracking that is scalable across international regions and markets.<br />
The end solution provides a subtle and intelligent approach<br />
that can evolve by integrating and building upon other assets,<br />
data sources and capabilities already in place. This approach<br />
enables a modular and organic ability to evolve and grow, but<br />
with a standardized core. These qualities are not always the<br />
prerequisite in Big Data techniques, but without this there is<br />
no foundation for growth.<br />
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32<br />
Display<br />
Media<br />
Metrics<br />
Report<br />
Media aGencY<br />
oF record (aor)<br />
DFA<br />
Turf wars<br />
Social<br />
sociaL<br />
Metrics<br />
Report<br />
MULtiPLe<br />
aGencies<br />
Buddy Media<br />
Search<br />
Media<br />
Metrics<br />
Report<br />
search aor<br />
Marin<br />
Crossing organizational units can be tricky. Often clients are<br />
not set up internally for a path to success based on complete<br />
integration and use of available data. Organizations are formed<br />
around channels — one unit owns the Web site and its data,<br />
another owns CRM and email, another may own Web media<br />
and yet another may be in charge of social media. Worse yet,<br />
each silo may have its own analytics arm. The only way to be<br />
part of this organizational conversation is to think big. We have<br />
gained phenomenal success by leveraging Big Data-based<br />
techniques as part of a modular, digital roadmap that directs<br />
current and future business investment in the next 100 days/12<br />
months/3 years. Be prepared to think big even while starting<br />
small, and determine your starting point and roadmap — no<br />
matter how audacious your goals.<br />
A Razorfish global technology client decided their initial priority<br />
was to gain cross-channel insights before embarking on targeting<br />
it’s time fOr BiG data tO imprOVe custOmer experience<br />
.com<br />
site<br />
Metrics<br />
Report<br />
diGitaL aor<br />
Omniture<br />
Example of a siloed view of data management and reporting.<br />
Mobile<br />
MoBiLe<br />
Metrics<br />
Report<br />
diGitaL aor<br />
Flurry<br />
Email<br />
eMaiL<br />
Metrics<br />
Report<br />
in-hoUse<br />
teaM 1<br />
ExactTarget<br />
Online<br />
Retail/<br />
Store<br />
MerchandisinG<br />
Metrics<br />
Report<br />
in-hoUse<br />
teaM 2<br />
ATG<br />
Transaction<br />
Data<br />
tenUre and<br />
ProdUct vaLUe<br />
Report<br />
in-hoUse<br />
Custom<br />
Profiles &<br />
Segments<br />
attitUdinaL<br />
Report<br />
research<br />
aGencY<br />
Custom<br />
owned<br />
Paid<br />
earned<br />
3rd PartY (Client and 3rd Party Data)<br />
and deep analytics. This was the foundation starting point for their<br />
organization and it ensured they gained political capital across<br />
their business model through an evidence-driven, customercentric<br />
approach that enabled financial modeling of return on<br />
investment. Their next phase focus is on actioning that data for<br />
targeting across display advertising and the Web site.<br />
Another Razorfish client, a major global retailer, recognized<br />
that they had a wealth of underutilized offline and digital data.<br />
They decided to leverage Big Data approaches to integrate<br />
multiple channels and power media, dynamic re-messaging,<br />
analytics and more. The ultimate purpose is to enhance the<br />
value of those relationships by aggregating information about<br />
the customer and communicating with them in the most relevant<br />
and engaging way. Previous iterations of this approach resulted<br />
in a three- to five-time increase in return on ad spend, and a<br />
significant decrease (about 65-70 percent) in cost per acquisition.<br />
Each phase typically pays for itself in weeks, while providing the<br />
funding for the next incremental phase. This becomes a sound
position to be in when convincing your peers of the rationale<br />
and business case to fund such solutions.<br />
Big Data can be organized without a major disruption or rearchitecture<br />
of existing structures, internal teams, vendors,<br />
agencies, platforms or focus. Instead, our approach to Big Data<br />
utilizes an open standard designed to exploit existing assets<br />
and fit the best custom solution for business environments.<br />
This approach has an evolving set of modular relationships<br />
managed as a single solution, resulting in a single and holistic<br />
view of the customer based on all available data. Our clients<br />
are using this common view to engage and encourage their<br />
different teams to speak in the same language.<br />
Description<br />
Delivery<br />
Option/<br />
Channel<br />
Benefits<br />
Considerations<br />
Typical ROI<br />
razorfishOPEN TM targeting roadmap.<br />
Multiple sales funnel constructs<br />
Funnel management is where people are getting clever with Big<br />
Data, however it runs the risk of solving only one part, rather than<br />
the whole. We know that leveraging a single view of the consumer<br />
drives value at all levels of the funnel. So why do many continue<br />
to approach client problems and challenges as one-offs or focus<br />
on just one area of the funnel?<br />
Too many distributed engagements will lead to:<br />
1. Single point-in-time solutions that require rebuild with<br />
every new engagement.<br />
2. An additional data silo that requires more time and effort<br />
to manage and process.<br />
Target 1.0 Target 1.1 Target 1.2 Target 1.3 Target 2.0<br />
Heavy use of<br />
CT with no<br />
dynamic ads<br />
Display or site<br />
Low complexity<br />
Some time to set up<br />
the offer, strategy<br />
and creative<br />
1.5 X ROAS<br />
Dynamic ad, last<br />
action only<br />
Display Display Display<br />
Fast to market<br />
Access to data<br />
is limited<br />
3.5 X ROAS<br />
• Dynamic ad<br />
• User history<br />
• Segmentation<br />
• Processing<br />
Higher relevance<br />
and full data access<br />
Greater set-up<br />
investment to ensure<br />
platform is in place<br />
5 X ROAS<br />
• Dynamic ad<br />
• User history<br />
• Integration of<br />
multiple data sources<br />
• Segmentation<br />
• Processing<br />
Increased relevance<br />
and huge long-term<br />
incremental<br />
data benefits<br />
Time to market<br />
is longer<br />
~6.5 X ROAS<br />
• Dynamic ad<br />
• User history<br />
• Integration of<br />
multiple data sources<br />
• Segmentation<br />
• Processing<br />
• Multi-channel<br />
delivery<br />
Display, site, email,<br />
mobile, call center<br />
Channel agnostic<br />
Greater cross-channel<br />
business coordination<br />
~8 X ROAS<br />
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Funnel management is<br />
where people are getting<br />
clever with Big Data.<br />
For example, the illustration on the right shows how an effective<br />
re-messaging program will grow the bottom of the funnel. However,<br />
if this becomes a one-off without integrated implementation and<br />
access to the data, the solution becomes a very clever silo at the<br />
expense of the broader opportunity.<br />
The reality is that the rules and the data to enable an integrated<br />
view and management of the funnel would need to come from<br />
first-party data via a DMP solution and the organization’s data<br />
assets, rather than a third-party data provider. Third-party data<br />
intelligence can provide these larger insights into what’s working<br />
and where there’s opportunity for more scale. Data providers<br />
can be joined to first-party data, not the other way around.<br />
Within Razorfish’s framework for integrating data and services<br />
(described below as razorfishOPENTM ), targeted, dynamic ads<br />
are combined with a Demand Side Platform (DSP), such as<br />
Audience on Demand (AOD), to match impressions to users<br />
identified in real time. This allows you to only reach users that<br />
have been already “qualified,” and avoid upfront agreements<br />
and negotiation by paying the market price for users meeting<br />
criteria defined in the audience segmentation. By reaching the<br />
right audience at the right price and allowing the ability to<br />
control bids at a cookie level provides a great deal of efficiency<br />
it’s time fOr BiG data tO imprOVe custOmer experience<br />
diGitaL oFFLine<br />
Awareness<br />
Consideration<br />
Retargeting<br />
Conversion and remarketing is only<br />
part of the answer.<br />
and relevance. This integration also enables the ability to bring<br />
a wide array of data at the bottom of the funnel to the audience<br />
at the top of the funnel.<br />
Inability to identify the customer<br />
Razorfish implements a customer-centric approach through an<br />
organized framework of measurement and tagging that tracks
all digital business activity and harnesses the full stream of<br />
data as the core basis of the single view of the customer. From<br />
day one we leverage all existing assets, people, agencies and<br />
platforms, without a big, disruptive overhaul. Chances are these<br />
existing components are there for a reason and are providing<br />
value, but getting that cross-functional view and line of sight is<br />
the first objective.<br />
Inability to quantify the value of customer experiences<br />
Organizations are increasingly demanding faster value return on<br />
their marketing investments. Razorfish has found that businesses<br />
now more than ever need a true, meaningful understanding<br />
of what drives customer value. Rather than using Big Data to<br />
improve one area of the customer experience, we need to build<br />
Consistent data collection across touch<br />
points enables analytics, segmentation,<br />
targeting and reporting. For example,<br />
a customer falls into segment 8, based<br />
upon razorfishOPEN TM rules. Razorfish<br />
then targets customer experience,<br />
agnostic of channel (represented<br />
by orange dots).<br />
AUDIENCE/<br />
PROSPECT/<br />
CUSTOMER<br />
Publishers<br />
3 rd Party DSP and<br />
Data Providers<br />
Open & DSP Audience<br />
Targeting Integration<br />
PROSPECT/<br />
CUSTOMER<br />
Behavioral data captured by the razorfishOPEN TM first-party DMP on client-owned assets integrates with Media DSPs<br />
third-party data to help build more precise audience segments and add to our clients’ audience buying capabilities.<br />
toward meaningful interactions at a customer level and progress<br />
the value of their brand relationships over time.<br />
We have seen our clients quickly moving toward a culture that<br />
understands customer data as one of its most valued assets.<br />
Focusing on customer value helps companies move away from<br />
channel performance and toward greater customer-centricity.<br />
But to calculate customer value, companies must fully utilize the<br />
recency of interactions, along with the required behavior, revenue<br />
and relationship metrics. A key challenge businesses struggle<br />
with is finding advanced analytical skill sets and analytics-based<br />
approaches that can leverage and interpret that data to determine<br />
the key levers that drive value within their organization, or at<br />
least within a specific team’s control.<br />
CUSTOMER<br />
MANAGEMENT<br />
Using an integrated DSP allows you to only reach customers<br />
and prospects that have been "qualified" by razorfishOPEN TM .<br />
Paid<br />
Owned<br />
Earned<br />
.com<br />
razorfishOPEN TM<br />
1 st Party DMP<br />
Enhanced Segmentation<br />
& Data Provision<br />
CUSTOMER<br />
MANAGEMENT<br />
Call Center<br />
DM<br />
Mobile<br />
Email<br />
Retail<br />
Client<br />
Proprietary Data<br />
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*<br />
Display<br />
Media<br />
Metrics<br />
Report Report Report Report Report Report Report Report Report<br />
Media aGencY<br />
oF record (aor)<br />
sociaL<br />
Metrics<br />
MULtiPLe<br />
aGencies<br />
*razorfishoPen tM tagging framework<br />
*<br />
* *<br />
Social Search .com Mobile Email<br />
* *<br />
Media<br />
Metrics<br />
search aor<br />
Media<br />
it’s time fOr BiG data tO imprOVe custOmer experience<br />
site<br />
Metrics<br />
diGitaL aor<br />
Targeting<br />
We define and value the segments of customers we want to<br />
engage with and create Big Data-applied algorithms to create<br />
a new type of value segmentation model that can operationalize<br />
differentiated experiences at high velocity. We not only deliver<br />
unique and consistent experiences to these customers, but also<br />
MoBiLe<br />
Metrics<br />
diGitaL aor<br />
razorfish-<br />
OPEN TM<br />
eMaiL<br />
Metrics<br />
in-hoUse<br />
teaM 1<br />
Analytics<br />
Online<br />
Retail/<br />
Store *<br />
MerchandisinG<br />
Metrics<br />
in-hoUse<br />
teaM 2<br />
Reporting<br />
*<br />
Transaction<br />
Data<br />
tenUre and<br />
ProdUct vaLUe<br />
in-hoUse<br />
Silo reports provide a detailed view at a channel level and have a role in optimizing channel performance.<br />
razorfishOPEN TM tagging framework that<br />
tracks cross-channel business activity.<br />
Ad serving tags provide a holistic view across the customer journey, at the unique customer level.<br />
Profiles &<br />
Segments<br />
*<br />
attitUdinaL<br />
research<br />
aGencY<br />
leverage our knowledge about them to bid for the opportunity<br />
to deliver those experiences. From the beginning, we value<br />
the revenue and other business impact of the opportunity and<br />
in the end we prove it.
We have seen our<br />
clients quickly moving<br />
toward a culture that<br />
understands customer<br />
data as one of its<br />
most valued assets.<br />
OUTLOOK REPORT | VOL 10<br />
37
WRITTEN BY<br />
READ MORE<br />
Brandon Geary<br />
SVP, Strategy<br />
@bRANDgEAR<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
Humanity Check —<br />
What Consumers<br />
Really Think<br />
About Tech<br />
To get outside the digital marketing bubble, we conducted a series<br />
of focus groups, in-depth interviews, and ethnographic sessions<br />
in San Diego, San Francisco, Seattle, Chicago, Ft. Lauderdale,<br />
and Portland, Ore. The goal was to uncover what’s really going<br />
on in the everyday user’s technology life. Among the insights<br />
that emerged: people still need their physical space, brands get<br />
points for effort, there’s a new kind of couch potato and there’s<br />
plenty of tech-fueled confusion in consumers’ lives.<br />
Talk to a few tech pundits about what’s next and you’ll very quickly see a calcified<br />
conventional wisdom form. Facebook and/or Twitter are totally integrated into<br />
everyone’s life and everyone wants to share everything. Quick Response (QR) codes<br />
count as progress. Google and Apple are loved by all and the world is waiting<br />
to see what both will do next.<br />
But talk to real people and you get a different story. To get outside the digital<br />
marketing bubble, we conducted a series of focus groups, in-depth interviews, and<br />
ethnographic sessions in San Diego, San Francisco, Seattle, Chicago, Ft. Lauderdale,<br />
and Portland, Ore. The goal was to uncover what’s really going on in the everyday<br />
user’s technology life. There were 56 respondents age 18-49, all of whom had<br />
broadband access in their home, a smartphone and a computer. But they didn’t<br />
identify themselves as super users or even technology enthusiasts.<br />
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40<br />
Five core observations rose to the top for us:<br />
1. PeoPLe need their sPace<br />
While much of the business news centers on the death or<br />
decline of old retail models — bookstores, movie theatres,<br />
consumer electronics and music — we found people continue<br />
to express emotional attachment to the store experience,<br />
despite the shuttering of former stalwarts like Borders. This is<br />
backed up by a recent Accenture survey that found nearly<br />
75 percent of consumers consider a storefront for digital<br />
communications products to be important. 1 We found strong,<br />
positive feelings about digital music, the rise of new content<br />
delivery mechanisms like Netflix, and digital content delivered<br />
on the Kindle and iPad, with limited longing for the old days.<br />
“I don’t miss CD boxes to be honest, and lugging books around<br />
wasn’t all that great,” said 29-year-old Cathy. The risk for<br />
retailer disintermediation clearly remains high for media products.<br />
But the desire for consultation and experiences — particularly<br />
shared experiences — remains alive and well.<br />
soLUtion: Give PeoPLe a new reason to coMe BacK. We found<br />
an openness to reinvention of old models with reliance on physical<br />
space. On music — “Why don’t they broaden the experience<br />
to include more physical objects around the music or have more<br />
events associated with the medium,” said Colin, 27. On movie<br />
theatres, 30-year-old Lisa said, “I’d like to see the opportunity<br />
to rent movie spaces for friend groups so that movies become<br />
more like karaoke in Korea.” Big box retailers under pressure<br />
from Amazon.com and disruptive models should consider<br />
re-evaluation of space, not just the product in question.<br />
2. More KnowinG, Less thinKinG<br />
Apps, search and social media are rapidly changing human<br />
interaction at the level of the conversation. Knowing stuff has<br />
become easy, which has had a reductive effect on chats that<br />
once might have been more discursive. “When we’re talking<br />
about something we aren’t sure of, we all just look up the<br />
answer and it’s over,” said Heather, 32. In-person interaction<br />
has evolved to become more of an information sharing exercise<br />
and less of a conversation around ideas where one person<br />
1 “The Value, Role and Performance of the Physical Retail Channel for Communications Service Companies: A North American Perspective,” Accenture,<br />
http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Communications_Research_Physical_Retail_North_America.pdf (2011).<br />
humanitY check — What cOnsumers reaLLY think aBOut tech<br />
Provide a small delight<br />
for customers. You don’t have<br />
to go big to get impact.
uilds on another’s thoughts, building on another’s thoughts.<br />
“I check my friends’ stuff more to see what information I should<br />
know now,” said David, 32.<br />
soLUtion: the Brand has to taKe a stand. For brands interested<br />
in using social media to join a conversation with their consumers,<br />
they may find there is less conversation to join and that they<br />
too are just sharing information or listening in on information<br />
share. Or brands may need to spark conversations. In a world<br />
of information sharing, consider asking a question, creating<br />
a debate and offering an opinion in attempt to get engagement.<br />
3. Brands Get Points For eFFort<br />
While only a few big successes in North America appear to get<br />
the majority of mainstream media coverage (Facebook, Apple,<br />
Google, Angry Birds and LinkedIn), we have found the perception<br />
of innovation increasingly comes from the trial of new things,<br />
regardless of whether or not the new thing is a long-term<br />
business success for the company that launched it. Google<br />
is consistently praised in projective exercises as innovative,<br />
despite an inability of users to pinpoint exactly what those<br />
innovations are. “Google is like Apple,” said Steven, 41. “Just<br />
always doing new things.” Companies like Starbucks and Nike<br />
are thought to be more suitable for reinventing dying industries<br />
like books and music, despite not being media companies.<br />
“Starbucks could make a better bookstore than Barnes & Noble<br />
could,” and “Apple could sell anything.”<br />
soLUtion: KeeP on MaKinG. Companies don’t have to get<br />
everything right to get credit. Perceived effort associated with<br />
releasing products and services creates a positive cumulative<br />
effect for the brand. For brands remaining on the sideline<br />
or fearing a lack of focus, consider placing smaller bets on app<br />
or development initiatives to provide a small delight for customers.<br />
You don’t have to go big to get impact.<br />
4. Meet the new coUch Potato<br />
Historically, digital pundits have promised a more interactive<br />
future, in which users move away from passive, couch potato<br />
viewing to more active engagement. While the amount of usergenerated<br />
content and sharing supports this movement, we<br />
have found everyday users increasingly leaning back in their<br />
digital consumption habits. Social media is described as a<br />
more ambient activity. “[Facebook] is usually a drag. I just feel<br />
lazy like I’m seeing the same old stuff and looking at people’s<br />
profiles. I feel somewhat guilty about it sometimes, like I’m<br />
wasting time.” Twitter, originally categorized as a social tool,<br />
is described more as a curation tool. “I don’t really tweet<br />
anymore. I just see what I should think about reading.”<br />
And social media in general is making in-person interaction<br />
increasingly difficult to motivate or organize. “It’s just so hard<br />
to make it (an in person meeting) happen now,” said Tran, 29.<br />
soLUtion: don’t Be aFraid to Be a PUsher. Brands that have<br />
long viewed digital as an engagement medium should also<br />
consider more opportunities and ideas that are more push<br />
in nature: video- and photo-based status updates, viral shorts<br />
and simple games and activities.<br />
5. the rise oF diGitaL conFUsion<br />
In launching new digital services in an app-filled, multi-device,<br />
multi-operating system world, consumers have become<br />
increasingly confused by messages. They’re less certain about<br />
the difference between a browser and operating system, PC<br />
and tablet, and OS and device manufacturer than ever before —<br />
“I’m not sure what Chrome or a Chromebook is.” “I’ve used<br />
Bing, but what does it do again?” While not every brand can<br />
be Apple from a product perspective, few beyond them appear<br />
to be delivering messages that are connecting.<br />
soLUtion: ditch the strateGY and Get to cLaritY. As marketers<br />
well versed in the creation of the emotional benefit look to new<br />
services for old or new brands, it’s paramount they continue to<br />
scrub their message strategies to get to the essential elements that<br />
drive clarity. Even more than before, attention and/or emotional<br />
attachment appear to be less of an issue than understanding.<br />
Digital devices, social platforms, mobile and commerce are all<br />
changing consumer behavior rapidly, but not entirely in the ways<br />
many had predicted. In the future, it’s the brands that rethink<br />
space, not just the product, take a stand in the social space,<br />
push content that’s easy to consume and simplify the message<br />
that win. This means the most surprising thing about the future<br />
might just be its similarity to the past.<br />
OUTLOOK REPORT | VOL 10<br />
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WRITTEN BY<br />
WITH CONTRIBUTOR<br />
READ MORE<br />
Ray Velez<br />
Global Chief<br />
Technology Officer<br />
@RvELEz<br />
Rafi Jacoby<br />
Social Technology Lead<br />
@RjACObY<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
How the Social<br />
Cloud Can Accelerate<br />
Brand Interaction<br />
From March 2010 to March 2011, Facebook online video and mobile<br />
device consumption time were all up, but the rest of the Web was<br />
down. This means that while these social areas have grown, they’ve<br />
also taken users away from more established sites. Brands need<br />
to take the conversation to where the users already are. Social<br />
cloud services connect digital experiences with Facebook,<br />
Twitter, LinkedIn, Google, Microsoft and other social services.<br />
We’ve identified some dos and don’ts to take full advantage<br />
of these APIs.<br />
The Web isn’t dead, but it sure has taken a hit. Wired Editor Chris Anderson’s<br />
prediction that the free, interconnected world of the Web would be replaced<br />
by the paid-for, walled gardens that are apps hasn’t necessarily come true.<br />
Yet the Web is a changing place with fewer winners and more losers because<br />
of audience consolidation around a few key platforms. From March 2010 to<br />
March 2011, Facebook use was up 69 percent, online video consumption was<br />
up 45 percent and mobile device time was up 28 percent. 1 The rest of the Web<br />
was down 9 percent. This means that while these areas have grown, they’ve also<br />
taken users away from more established sites.<br />
With social and video sites, the users are already there — you don’t need to drive<br />
them to your destination site. Instead, you can take the conversation to where the<br />
1 Ben Elowitz, “The Web is Shrinking. Now What?” Digital Quarters, June 2011,<br />
http://digitalquarters.net/2011/06/the-web-is-shrinking-now-what/.<br />
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users are already. For instance, Facebook makes up 25 percent<br />
of all page views, with users averaging 15.5 hours per month<br />
on the site. This requires a rethink on how you spend your media<br />
dollars to acquire users.<br />
In order to acquire information about those users, all you need<br />
to do is offer something small: a fun experience, chance to win<br />
something or a coupon (which do amazingly well).<br />
When you have reached the right audience, the users you have<br />
acquired will continue spreading the message for you. According<br />
to “Zuckerberg’s Law,” users share twice as much content every<br />
year as the previous year. Your brand’s content will be disseminated<br />
by real people to the people who trust them (high “earned” value).<br />
In the future, the brand with the most compelling content wins.<br />
Arguably this is already happening, but we need to develop new<br />
metrics to understand this. What is clear is that users want<br />
to share creative, fun and engaging content — not product<br />
specs or regular marketing collateral.<br />
Soon, more experiences will be connected: tweeting from inside<br />
an Xbox game that they have unlocked a new level; sharing<br />
the act of viewing a TV show on Twitter/Facebook/GetGlue;<br />
leading other users on an augmented reality treasure hunt<br />
on their phones while tracking the progress inside a Facebook<br />
leaderboard and tweeting out results.<br />
With the rise of social check-in services (Foursquare, Twitter,<br />
Facebook), you can have trackable digital marketing tying into<br />
brick and mortar. Then, you can build an experience around<br />
that location with communities, discussions, deals and events.<br />
You can learn exactly how far users will go to make a purchase,<br />
which users are more likely to purchase where, and what<br />
other locations they frequent that might be interesting for your<br />
business — all without commissioning surveys or having to<br />
integrate with many different point-of-sale systems.<br />
Social cloud services provide your digital experiences or Web<br />
properties with the ability to connect up with Facebook, Twitter,<br />
LinkedIn, Google, Microsoft and other social services. These<br />
services come in the form of Application Programming Interfaces<br />
(APIs) that your technologist can integrate. Whether your digital<br />
hOW the sOciaL cLOud can acceLerate Brand interactiOn<br />
experience is a mobile application or a traditional desktop site,<br />
these APIs are available.<br />
Marketing and business needs a blueprint for how these<br />
all interact. The graphic, to the right, describes the key API<br />
categories in the social space.<br />
Three core areas make up social APIs<br />
1. aUthentication<br />
The first core API area is authentication or the ability to leverage<br />
the services of a social network to help people gain access<br />
to your digital property. You can now enable users to log in<br />
to your Web properties without having to create a new account.<br />
Registration through a social cloud service breaks down<br />
the barrier to entry of creating an account. OAuth and OpenID<br />
are the main technology standards for ensuring secure access<br />
to digital sites and properties. Sites can support both or just<br />
one, but ultimately these technologies can have a drastic impact<br />
on the number of folks who sign up. Once authenticated, there<br />
is the concept of profile data sharing or the sharing of data<br />
elements about people — pictures, birthdate, email, etc.<br />
Obviously, there are privacy considerations that have slowly<br />
evolved. For example, when we first used Facebook Connect<br />
profile sharing, anyone could grab a person’s picture, but then<br />
Facebook evolved their privacy controls to give users control<br />
of who can see their picture. Of course there are limitations<br />
on what you can do with the identification, but at that point you<br />
can grab more information from the person contextually to your<br />
experience as needed. Lastly, it’s important to make sure you<br />
use whatever the connection type is, whether OAuth, OpenID<br />
or proprietary with secure sockets layer. This will ensure the<br />
hacker hanging at Starbucks doesn’t steal your password.<br />
After logging in, you can leverage locally saved tokens so<br />
users don’t have to login to Facebook across every site they<br />
go to during the day. One login will work. Letting users pick<br />
their account type to log into (Facebook, Twitter, etc.) affords<br />
the most flexibility, and you can leverage a lot of the same<br />
development when you code to a standard like OAuth.
FaceBooK<br />
GooGLe<br />
twitter<br />
LinKedin<br />
windows Live<br />
2. conversation and sharinG<br />
oPen sociaL<br />
ProPrietarY<br />
Social<br />
Graph<br />
Sharing<br />
The second core API area is commenting and message<br />
boards — basically the ability to create messages around<br />
a topic area. Let users drive conversations like comments<br />
or message boards without having to write custom code to<br />
support it. Consider a Twitter message a conversation around<br />
a topic area, or a Facebook wall post a growing interaction<br />
for your experience. A lot of the API needs in this area are<br />
bringing order to the chaos. The Facebook plugins are pretty<br />
easily implemented and high value. Replace your own comment<br />
boards with Facebook comments — no additional sign-up<br />
required, and content can be shared on a user’s wall. It’ll drive<br />
traffic in and out of your Web property. Technologies available<br />
in the Software as a Service (SaaS) approach such as DISCUS<br />
or Echo enable you to bring the messaging to your site, while<br />
still existing on Twitter and Facebook. Considerations down the<br />
line include the ability to moderate and monitor posts, which are<br />
especially important when considering branded experiences.<br />
Social Application<br />
Programming Interfaces (API)<br />
Commenting<br />
& Message<br />
Boards<br />
Authentication<br />
FaceBooK<br />
twitter<br />
3. sociaL GraPh<br />
oaUth/oPenid/<br />
cUstoM<br />
discUs<br />
echo<br />
Profile<br />
Data<br />
Sharing<br />
FaceBooK<br />
GooGLe<br />
windows Live<br />
twitter<br />
LinKedin<br />
data<br />
PortaBiLitY<br />
Lastly, one of the most important social API areas is sharing<br />
of the social graph. That means not only connecting with the<br />
current person, but with their friends as well. All of this is made<br />
available through the API. Similar to OAuth and OpenID, there<br />
is a technology standard for accessing this information called<br />
OpenSocial. While this has evolved considerably over the<br />
last couple of years, it still seems to lack broad adoption by<br />
the major players, most notably, Facebook. For now it seems<br />
proprietary API calls to social engines are still the norm.<br />
Authentication, commenting and social graph sharing are<br />
the three key social services, but there are lots of other social<br />
services that can also power your digital experiences, whether<br />
mobile, desktop or in-retail. These will continue to grow as<br />
people innovate in the space. Social video services like Vimeo<br />
and YouTube allow you to embed your videos in your own<br />
digital experiences while still allowing the video content<br />
to be accessible from the YouTube and Vimeo platforms.<br />
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The obvious benefit is that you save on bandwidth costs, but<br />
the even greater benefit is that you are where users are. You<br />
create a branded experience on YouTube, and then extend that<br />
experience through YouTube embed codes onto your branded<br />
property. YouTube continues to grow their API to allow more<br />
flexibility around how your player looks and whether or not ads<br />
should show up on your videos.<br />
Simple plugin buttons such as Facebook’s “Like” and “Share,”<br />
Google’s “+1,” and Twitter’s “Tweet” and “Follow” dramatically<br />
lower the barrier to users sharing content from your site out<br />
to their entire social graph.<br />
Data resources<br />
Learn exactly how far users will go<br />
to make a purchase, which users<br />
are more likely to purchase where,<br />
and what other locations they frequent.<br />
If social cloud services accelerate traffic to your branded digital<br />
experience, core cloud infrastructure services will enable your<br />
social cloud services. Infrastructure as a service or rent-as-yougo<br />
Infrastructure as a Service (IaaS) or Platform as a Service<br />
(PaaS) let businesses like Zynga, Groupon, LivingSocial and<br />
Airbnb go from nothing to $1 billion valuations with negligible<br />
IT overhead, scaling when they need it, without overbuying<br />
capacity. But make sure you architect for fault tolerance (see<br />
hOW the sOciaL cLOud can acceLerate Brand interactiOn<br />
AWS failure this spring). PaaS leaders make deployment,<br />
database and background jobs easy: consider Heroku, AppFog,<br />
Engine Yard, VMware and Cloud Foundry.<br />
We can learn from the technologies, processes and concepts<br />
that have enabled huge social cloud growth for those companies.<br />
They are using PHP (Facebook), Ruby on Rails (Twitter, Groupon,<br />
Airbnb), Python (Yelp), MySQL, unobtrusive JavaScript, serverside<br />
JavaScript, cloud hosting, Scala, Clojure, MongoDB, CSS3,<br />
HTML5, REST, JSON and WebSockets. These technologies<br />
are being used by cutting-edge companies and they are<br />
contributing their cutting-edge work back to the community.<br />
Plus they are generally much more cost-effective than traditional<br />
enterprise-based approaches, stuck within slow-moving,<br />
expensive corporate IT data centers. Agile approaches have<br />
pushed innovative approaches like continual builds of code<br />
or continual releases of production code. Both approaches<br />
are made practical through platform cloud services.<br />
Cloud-based performance monitoring tools like New Relic can<br />
identify performance problems in your application and give<br />
you starting points for optimization. LinkedIn uses this kind<br />
of information to identify functionality that can be replaced
with higher performance languages and frameworks, migrating<br />
key services over to Node.js and Scala to take advantage<br />
of their high degree of parallelization. If you need deeply<br />
integrated analytics, a service like Mixpanel solves storage,<br />
presentation, organization, querying and export problems,<br />
and provides simple toolkits for instrumenting both the server<br />
and client components of your Web app.<br />
Build with multiple screens in mind. A single codebase can easily<br />
support Web, Facebook canvas and mobile touch if you abstract<br />
out your views well and use a framework that is designed for<br />
such flexibility. Why not launch on three surfaces simultaneously<br />
for almost the same price in development? There’s no need to<br />
think of your site and your Facebook presence as completely<br />
different animals. They can be two views of the same thing, with<br />
slight differences. Platform cloud services can help you optimize<br />
and speed delivery, regardless of the screen. Look at cloud-based<br />
caching delivery networks like Amazon’s CloudFront or Google’s<br />
Page Speed to accelerate delivery, regardless of targeting a<br />
Facebook page or a traditional Web page.<br />
Cloud services like Mashery or Apigee enable your brand to get<br />
into more places than just your owned digital properties.<br />
Razorfish’s Open Digital Services approach helps clients’<br />
strategic view of services. Think about freeing some of your<br />
data (product catalog, etc.) with a public API and see what<br />
the community might build around/for you.<br />
Cautions<br />
There are many useful services available to build your<br />
applications. Yahoo! Query Language (YQL) lets you query<br />
a myriad of pieces of information against many of the Yahoo!<br />
properties. Geocoding services identify user locations and<br />
help you provide locally interesting content. It is important<br />
to understand how dependent your application is on these<br />
services and what their limitations are. Most will have limits<br />
on the number of API calls you can make; it’s advisable<br />
to build a layer into your own application to cache whatever<br />
you can to avoid hitting those caps. A local cache will also<br />
keep your application running and useable if the services<br />
experience an interruption. Lastly, ensure that you are<br />
subscribed and follow any announcements around APIs;<br />
they have change deadlines and if you don’t update in time<br />
you can be out of service.<br />
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If you build something that depends on the major social networks,<br />
your app will require occasional work in order to keep in sync<br />
with the latest changes, as well as monitoring to make sure<br />
that things outside of your app are live and working. During<br />
one campaign on Twitter, the tweets were not all appearing<br />
in the search feed and Twitter had to help fix an issue on their<br />
side. Facebook has had several major changes on their API,<br />
with the latest coming Fall 2011 — a security overhaul of the<br />
application authentication system that will disable applications<br />
that do not comply. In the past, Facebook switched from<br />
its proprietary Facebook Markup Language (FBML) to IFrames,<br />
but if you had an app that hadn’t launched yet, you had<br />
to make sure to pre-provision it on Facebook or you wouldn’t<br />
be grandfathered in and would have to scramble to do a rewrite.<br />
Social conversations are hard to control. You may want to take<br />
a fresh look at how you relate with your consumers. Some<br />
brands have elected to be very hands-off. Others are very<br />
engaged. Third-party social monitoring tools (Context Optional,<br />
Involver, Buddy Media) and a community manager are a must<br />
in that case for doing escalation, bad word filtering, auto delete<br />
and more. This can be a recurring budget consideration.<br />
hOW the sOciaL cLOud can acceLerate Brand interactiOn<br />
Your Facebook page should be a destination with many doors,<br />
not just a flat campaign. Engaged users spend more time<br />
with your brand, and become your biggest advocates — often<br />
jumping in to defend the brand on the wall before the brand<br />
can respond. So give them a reason to stay and interact<br />
with something more than a lead generation form. Consider,<br />
“Why would someone share this with their friends?” when<br />
designing your social presence.<br />
Don’t oversaturate your fans with content. You’ve spent time<br />
and money on earning them, so make your posts to their<br />
streams or tweets compelling and not too frequent in order<br />
to avoid them “un-liking” or blocking you.<br />
Social isn’t a one-off. You’ve acquired lots of fans so keep<br />
using them. Think of longer strategies, not just short campaigns.<br />
You built an app that has 3 million users — don’t just end,<br />
extend. Those people are linked to you now, so keep giving them<br />
something. Add more content and create new ways to interact.<br />
This probably involves a new way of looking at budget.
OUTLOOK REPORT | VOL 10
WRITTEN BY<br />
READ MORE<br />
Tim Perlstein<br />
Group VP, Strategy<br />
LINKEDIN.COM/IN/tIMpERLStEIN<br />
Bethany Fenton<br />
VP, Experience<br />
LINKEDIN.COM/IN/bEthANYfENtON<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
Beyond the Banner —<br />
Unleashing the Power<br />
of Digital to Drive<br />
Topline Growth<br />
Industry leaders have to reinvent themselves periodically to<br />
maintain their preeminence. But as the rate of technology-driven<br />
change continues to increase over time, the speed and frequency<br />
with which companies must reinvent themselves also increases.<br />
And unfortunately for industry incumbents, technology-driven<br />
disruption tends to favor new entrants, who are often faster,<br />
hungrier and unencumbered by legacy systems and processes.<br />
We believe digital should be at the core of any industry leader’s<br />
growth strategy, and we’ve identified three ways digital can drive<br />
step-change improvement in topline growth — above and beyond<br />
efficiency maximization of existing efforts.<br />
The first wave of digital disruption came crashing into the business world about<br />
15 years ago, when the Internet first exploded as a consumer technology. Since<br />
then, leading companies across industries have been scrambling to master the art<br />
of marketing and selling online. Most large companies now maintain multiple Web<br />
experiences and marketing programs — all of which require periodic upgrades<br />
in the form of redesigns and replatformings, as well as ongoing testing and<br />
optimization. (All bread and butter for digital agencies, of course.)<br />
Meanwhile, in what sometimes seems to be a parallel universe, pure-play digital<br />
startups continue to spawn, swarm and thrive, often squeezing out weaker<br />
competitors and overturning established industry structures in the process.<br />
Industry leaders have had to reinvent themselves periodically to maintain their<br />
preeminence. But as the rate of technology-driven change continues to increase<br />
over time, the speed and frequency with which companies must reinvent<br />
OUTLOOK OutLOOk REPORT repOrt | VOL 10<br />
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themselves also increases. And unfortunately for industry<br />
incumbents, technology-driven disruption tends to favor new<br />
entrants, who are often faster, hungrier and unencumbered<br />
by legacy systems and processes.<br />
Now, as companies emerge from the recession looking to deliver<br />
step-change improvements in revenue growth — and as growth<br />
becomes harder and harder to find within existing markets —<br />
digital channels, programs and agencies must do more than<br />
deliver incremental improvements from evolutionary change.<br />
Optimizing your way to greater efficiency is good, but not<br />
enough. Digital can and must do more.<br />
Digital should be at the core of any industry leader’s growth<br />
strategy. In fact, given the relative maturity of established<br />
platforms and programs — and the ever-increasing competitive<br />
pressure from new entrants — now is the time to ignite a new<br />
round of digital innovation within your organization. To begin<br />
the conversation, we’ve identified three ways digital can drive<br />
step-change improvement in topline growth — above and beyond<br />
efficiency maximization of existing efforts.<br />
1. new MarKets<br />
As domestic growth in core segments becomes harder to come<br />
by for U.S. companies — and as emerging markets continue<br />
their dramatic expansion — we expect industry leaders to seek<br />
new growth from markets that are new to the company and/or<br />
broadly underserved by their industry. Digital can and should<br />
be a powerful, cost-efficient method of reaching and serving<br />
these markets.<br />
That said, leveraging digital for new market entry isn’t as simple<br />
as launching a version of your Web site in your target market’s<br />
local language, although this might not be a bad start.<br />
Localization means more than translation. For online retailers,<br />
serving international markets means dealing with foreign<br />
exchange rates, taxes, sizing systems and — of course —<br />
1 Allison Enright, “Macy’s Goes Global,” InternetRetailer.com, June 27, 2011, http://www.internetretailer.com/<br />
2011/06/27/macys-goes-global.<br />
2 2011 Financial Performance Report, PWC/Grocery Manufacturers Association, page 43.<br />
BeYOnd the Banner — unLeashinG the pOWer Of diGitaL tO driVe tOpLine GrOWth<br />
fulfillment. Despite the complexity, retail giants Macy’s,<br />
Barneys New York, PBteen, and JoS. A. Bank all extended<br />
their ecommerce operations internationally this year. Macy’s<br />
now has an ecommerce presence in 90 countries, although<br />
its physical stores are all within the U.S. 1 The logic is<br />
obvious: With domestic growth stalled, foreign markets offer an<br />
appealing opportunity to extend brands and capture growth while<br />
requiring only minimal capital investment (compared to rolling<br />
out more brick-and-mortar operations).<br />
Of course, overseas growth isn’t just for retailers. Even<br />
manufacturers for whom digital is not a direct sales channel<br />
are using digital tools and partnerships as a cornerstone<br />
of market entry strategy. As always, deep knowledge of local<br />
players and local infrastructure is key. For example, given<br />
the relatively high adoption of mobile phones (versus desktop<br />
PCs) in developing countries, some Consumer Packaged<br />
Goods (CPG) companies are looking to advance by partnering<br />
with local telecom operators to expand mobile coverage —<br />
in exchange for marketing access to consumers. Other firms,<br />
such as General Mills, leverage digital for insight and customer<br />
collaboration, as well as outbound communication. In China<br />
and other markets where standard retail channel data<br />
is inconsistent or nonexistent, General Mills is building<br />
a proprietary database of consumer households, and using<br />
real-time digital communications tools to allow consumers<br />
to voluntarily share data on their preferences and behaviors. 2<br />
These are just some of the ways in which digital can support<br />
successful new market entry — well beyond the banner ad. We<br />
expect to see much more innovation in the coming year, as early<br />
initiatives prove successful and best practices begin to emerge.<br />
2. enhanceMents For existinG ProdUcts and services<br />
“Digital” can be more than a marketing or sales channel; it can<br />
fundamentally transform a product or service by providing<br />
additional functionality and consumer value. Even companies
accustomed to delivering tangible, “real world” value propositions<br />
should treat digital as a core component of product strategy —<br />
not just marketing or sales.<br />
The most obvious example of this dynamic is the ongoing upheaval<br />
within the media industry, where traditional core “products”<br />
have been entirely digitized, radically expanding the dimensions<br />
of competition and dramatically increasing the importance<br />
of distribution channels and the overall “experience” of content<br />
access. The list of recent digital product innovations within<br />
the media industry seems endless. It encompasses multiple new<br />
access platforms, ancillary or “exclusive” premium content<br />
options, user-generated or participatory content development,<br />
sharing, commentary, other social features, and on and on.<br />
A more subtle but equally interesting evolution is happening<br />
within the hardware and networking industries that typically<br />
support content delivery. Digital TVs are becoming “smart,”<br />
adding Internet connectivity and their own application platforms.<br />
Network providers are delivering increasingly integrated digital<br />
3 See for example: M2M and Embedded Strategies, Juniper Networks, May 2011, page 81-85.<br />
services with new, digitally enabled functionality (set TV<br />
recordings from your smartphone, view caller ID on your TV,<br />
manage call routing and voicemail settings from your PC,<br />
etc.). Add in a host of innovative new hardware options (Roku,<br />
Boxee, Slingbox, Apple TV, Xbox 360) and service providers<br />
(Netflix, Skype, Google TV), and you have a full-on battle for<br />
control of the digital home.<br />
More established providers of “traditional” products and services<br />
cannot help but be affected by this domestic, digital landscape<br />
and the new consumer behaviors it generates. Home security<br />
and automation providers must inevitably develop new strategies<br />
and products to compete within the increasingly networked<br />
home. (ADT’s Pulse product is a good, early example of this<br />
trend.) Consumer electronics manufacturers may find ways<br />
to embed digital “smarts” in appliances beyond TVs. Even<br />
supposedly staid utility companies may get in on the act,<br />
with more efficient and convenient controls, monitoring<br />
and service solutions. 3<br />
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Now is the time to ignite<br />
a new round of digital innovation<br />
within your organization.<br />
For service providers outside the home, digital enhancements<br />
are becoming just as commonplace — and perhaps even more<br />
important. The ability to conduct secure online banking<br />
or day trading from our smartphones is something many<br />
of us already take for granted. (Can you even imagine opening<br />
a new checking account that didn’t offer free online bill pay?<br />
We can’t.) Travel providers, from airlines to cruise lines, are<br />
scrambling to provide ever-more convenient digital applications<br />
for booking, trip management and customer service — both<br />
during and after travel. Even brick-and-mortar service providers<br />
are finding ways to integrate digital add-ons within their core<br />
experiences, whether it’s providing access to a vastly extended<br />
assortment (JCPenney’s in-store kiosks) or free, premium digital<br />
content (Starbucks’ “Digital Network”) while on-premises.<br />
The lesson behind all these examples is the need to view digital<br />
as an arena for fundamental product innovation, not just<br />
marketing communications. Rapid technology change continues<br />
to open up vast, uncharted whitespace for products and services<br />
yet to be invented. And as new and established players across<br />
multiple industries continue to extend their offerings into the<br />
digital realm, the consumer’s digital ecosystem becomes an<br />
ever-richer environment within which to innovate.<br />
BeYOnd the Banner — unLeashinG the pOWer Of diGitaL tO driVe tOpLine GrOWth<br />
3. entireLY new BUsinesses<br />
This brings us to the third major digitally driven growth<br />
opportunity: the development of entirely new business lines.<br />
Although it’s still early days, we’re seeing more and more<br />
companies in “traditional” industries using digital to launch new<br />
businesses and ventures that are adjacent (or even outside)<br />
their core comfort zones. An even greater number of companies<br />
now maintain digital innovation skunkworks, with a mission<br />
to identify and pursue promising opportunities outside the<br />
umbrella of the main organizational structure and brand.<br />
Just a few examples should help paint the picture. GameStop,<br />
the leading physical retailer of video games, made a splash<br />
this summer when it announced its move into online streaming<br />
of console games — clearly a hedge against declining physical<br />
retail sales of a fundamentally digital product. It’s a move that<br />
requires fundamentally different capabilities and processes<br />
from the core retail business, and will likely benefit if managed<br />
separately from store operations. Additionally, GameStop<br />
maintains a vibrant portfolio of digital properties, including<br />
Kongregate.com and GameInformer.com, which could form<br />
the seeds of future all-digital ventures.
There are plenty of other examples of companies launching<br />
new virtual or cloud-based business models. Microsoft, reacting<br />
to the market’s move away from boxed software, launched<br />
Office 365, the cloud-based version of its dominant office suite,<br />
available on a subscription basis. In a completely different<br />
category, Gourmet magazine was shuttered as a print magazine<br />
but resurrected as an online-only publisher — a fundamentally<br />
different business model for parent company Condé Nast.<br />
And in the world of financial services, H&R Block has found<br />
value in monetizing free online tax prep services, which, despite<br />
living under the same brand umbrella, involves digital skills<br />
and tactics that are quite different from the company’s traditional<br />
brick-and-mortar business. 4<br />
Finally, it’s worth remembering a “classic” example of digital<br />
business innovation: Gap Inc.’s creation of the Piperlime<br />
brand in 2006, as an online-only shoe retailer. While not<br />
a primary revenue engine for the parent company, the Piperlime<br />
4 H&R Block 2010 Annual Report, page 4.<br />
5 “Piperlime Brand Adding Zest to Gap,” Marketwatch.com, September 17, 2010, http://www.marketwatch.com/<br />
story/piperlime-brand-adding-zest-to-gap-2010-09-17.<br />
experiment was deemed successful enough to remain a separate<br />
branded entity, and has grown beyond shoes to include branded<br />
women’s apparel and accessories and, as of this summer,<br />
menswear as well. It was also no doubt a key reference point<br />
in Gap Inc.’s decision to purchase Athleta (another onlineonly<br />
retailer) in 2008. 5 We view this as a model for successful<br />
experimentation with online-only business models and digitalonly<br />
brands, and are aware of similar trial ventures in the works<br />
within the retail sector and others.<br />
For companies willing to experiment in this way, we see<br />
significant potential to create new profit centers. Of course,<br />
we also recommend that these initiatives be managed closely<br />
and nurtured carefully, as beta is high. Of the three digital<br />
growth strategies presented here, this “new business” category<br />
typically carries the highest risk, as well as the highest<br />
potential reward.<br />
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Getting started<br />
If you’re now sold on the power of digital as a driver of growth<br />
outside your current core, here are some general recommendations<br />
to keep in mind as you’re plotting strategy and laying the foundation:<br />
LooK aroUnd. Given the rampant, technology-driven innovation<br />
happening across industries, you’ll want to keep an eye (or<br />
several) on developments outside your own category — as well<br />
as a constant focus on the ever-changing technology landscape.<br />
Network with colleagues, partners, and functional peers to get<br />
real-time insight into what’s working now, across many types<br />
of organizations. This kind of insight should help drive shorter<br />
cycles and higher hit rates for innovation initiatives and other<br />
kinds of change programs.<br />
LooK ahead. When it comes to both business strategy and<br />
technology, evaluating the current landscape is rarely sufficient<br />
to inform plans and roadmaps with a time horizon longer than<br />
six months. It’s essential to take a longer view, and include not<br />
just competitors but also disruptive factors — which, defined<br />
broadly, should include technology-driven substitutes as well<br />
as potential new entrants.<br />
LooK within. Take a fresh look (or ask a genuine outsider) to<br />
help identify “buried treasure” within your current business —<br />
underleveraged assets that digital technology can help unleash<br />
in unexpected ways. This could include products (lesser-known<br />
SKUs, niche offerings, an extended “long tail” assortment),<br />
processes (ancillary services, product development or innovation<br />
capabilities, insight generation), people (internal experts and<br />
influencers, underexploited partnerships, underserved customers,<br />
etc.), IP (contents, patents, other forms of internal knowledge)<br />
and who knows what else. New, unexpected connections<br />
between assets and markets are often areas where digital<br />
can help unlock additional business value.<br />
BeYOnd the Banner — unLeashinG the pOWer Of diGitaL tO driVe tOpLine GrOWth<br />
Partner earLY and oFten. No single team or company can do<br />
everything well, all the time. To build new capabilities quickly<br />
and share risk, look within and across industries to find<br />
unexpected partnerships that unlock new value by creating<br />
entirely new value propositions. By partnering with companies<br />
in adjacent — or even seemingly unrelated — industries you<br />
may gain access to new pools of assets such as content,<br />
technology, or data (always fulfilling commitments to protect<br />
consumer privacy, of course). These can help power new kinds<br />
of digital experiences — or even full-fledged new ventures —<br />
while leveraging your own internal assets and capabilities in<br />
more productive ways.<br />
consider BUYinG. Sometimes it just makes more sense to<br />
purchase assets, capabilities and talent outright, rather than<br />
partner. (Allstate’s pending acquisition of Esurance, as of August<br />
2011, is a particularly good example of this as it applies to<br />
digital strategy.) Establishing a solid strategic foundation, with<br />
a shared internal vision and a clear view of your desired future<br />
state, can help reveal your most critical current gaps and aid<br />
in evaluating possible acquisition targets for digital initiatives.<br />
Hopefully we’ve convinced you that “digital” is much more than<br />
your Web sites, banner ads, search keywords and mobile apps.<br />
At its core, it is technology-enabled growth, innovation and<br />
transformation of existing business models. As the other articles<br />
in this report make clear, we believe the next major cycle of<br />
technology-driven disruption has only just begun. And the future<br />
belongs to those companies who look beyond the importance<br />
of near-term optimization — as important as that is — and move<br />
decisively to put digital at the center of their strategies for longterm<br />
business growth and differentiation.
“<br />
Digital” can be<br />
more than a marketing<br />
or sales channel —<br />
it can fundamentally<br />
transform a product<br />
or service.<br />
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WRITTEN BY<br />
READ MORE<br />
The Team at Denuo<br />
WWW.DENUOLOgY.COM<br />
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The Rules of<br />
Gamification<br />
Gaming is embedded in us as human beings. We’ve already seen<br />
the effects of applying game mechanics to individual marketing<br />
campaigns, to every loyalty program in existence, and to tons<br />
of Web sites where you might not think “game” at first glance.<br />
This is “gamification,” and to make it work, there needs to be a<br />
focus on the very human benefits that make games successful:<br />
challenge, recognition, tracking, competition and cooperation.<br />
Human beings love games. If you look hard enough, you’ll find game dynamics<br />
in everything we do, from education to careers to relationships. We’re all about<br />
establishing rules, defining winners and losers, competing and cooperating.<br />
So while it’s no surprise we see all of these things in marketing campaigns, it’s<br />
also nothing new. For decades, loyalty campaigns that instill customer loyalty<br />
by awarding points and prizes have been a mainstay of establishing customer<br />
relationships. Now the rise of social media is bringing a different kind<br />
of gamesmanship to bear. Facebook is flooded with FarmVille and Mafia Wars<br />
achievement. Foursquare is turning everyone into the mayor of somewhere.<br />
And Twitter, though most are loath to admit it, is all about the accumulation<br />
of followers. Then there’s Klout, which has managed to make a game of all<br />
these games, awarding badges and small gifts to those who are best at playing<br />
the social game.<br />
Brands want to play, too. And some are doing a good job of it. Pepsi, Starbucks,<br />
Hallmark and Nike are just a few examples of marketers who have gamified<br />
their customer experiences. “Gamification” — the application of gaming<br />
principles, mechanics or concepts to efforts that aren’t necessarily “games,”<br />
has everyone talking.<br />
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But games aren’t all fun and, um, games. While they might appear<br />
to be a safe way to earn engagement for your brand, they must<br />
be integrated in an authentic way in order for consumers to want<br />
to participate. When considering the prospect of a program<br />
using these principles, it’s important to focus on very human<br />
benefits that make games successful — challenge, recognition,<br />
tracking, competition and cooperation.<br />
These five benefits are the lenses through which we’re approaching<br />
any gamification effort:<br />
As marketers, we’ve been taught to make communication<br />
frictionless, easy and direct. But for games, that’s a recipe for<br />
boring. The artful application of difficulty to games is what makes<br />
them fun, and there exists the same opportunity to create fun<br />
in marketing using this principle. Don’t be afraid to challenge<br />
your audience but, of course, that’s not the same as miring<br />
them in complexity.<br />
the ruLes Of GamificatiOn<br />
We humans are all about establishing<br />
rules, defining winners and losers,<br />
competing and cooperating.<br />
1. chaLLenGe<br />
2. recoGnition<br />
A lot of people go through life without being recognized very<br />
often — that’s one of the reasons we have birthdays and<br />
Facebook. Games can change that. They recognize achievement,<br />
scarcity and excellence in a context that matters to the player.<br />
Taking that understanding of context and what truly matters<br />
to a consumer creates a flood of creative marketing ideas.<br />
Badges, mayorships, little gifts — they can all go a long way<br />
to make your consumers feel special.<br />
3. tracKinG<br />
The notion of the Quantified Self has taken deep root in our<br />
culture. We’re tracking more and more of our lives via sensors,<br />
apps and Web sites than ever before. Our workflows, diets<br />
and sleep schedules are all now quantifiable using the latest<br />
technology, but games have a long history of giving players<br />
feedback about their progress and when they’ll finally reach
the end. It’s easier than ever before to harness data to enrich<br />
any experience and deepen the engagement one has with it, be<br />
it entertainment or marketing — or both. Using games can help<br />
you help your consumers better understand their performance<br />
and help them improve.<br />
4. coMPetition<br />
This is the most obvious lens to consider when applying game<br />
thinking, because games produce winners, losers and everything<br />
in between. The rub with marketing is making sure that the<br />
audience cares enough and that there are enough relevant<br />
rewards to warrant real competition.<br />
5. cooPeration<br />
Throw “teams” into a competition and all of a sudden everything<br />
is more intense. As much as people like to compete, they like<br />
to achieve things together even more, and social games have<br />
taught us lessons about that fact for several years now. Marketers<br />
offer things consumers want — making them participants in<br />
a gaming experience, and encouraging them to work together<br />
toward those wants can be a powerful motivator.<br />
Together, these five lenses create some really interesting programs.<br />
We’re using them to bring lively connections to family dinners<br />
(www.eltacodor.com), create hunts across America for hidden<br />
prizes (www.thanksabilliongiveaway.com) and power a Twitterfueled<br />
race to the Super Bowl (awardshowsubmission.com/<br />
mercedesbenz/tweetrace/the_race.html). Beyond marketing,<br />
businesses are using these lenses to aid them in everything<br />
from training to customer service to logistics.<br />
Can gamification get in the way? Of course. But it can also<br />
be a profound tool in the marketer’s toolbox. Consider adding<br />
game design to the marketing skill set — and treat it like<br />
creativity, flexibility, tenacity and any other must-have<br />
in the marketing superpower set. Applying what we’ve learned<br />
from games to advertising creative, the tracking of marketing<br />
efforts and the brand itself is interesting. If it’s also fun, then<br />
it becomes very interesting.<br />
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WRITTEN BY<br />
READ MORE<br />
Chris Bowler<br />
VP, Social Media<br />
@bUCKEtQUIz<br />
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It’s Not Enough<br />
to Be Liked — Getting<br />
Serious About Social<br />
We know from eMarketer that nearly 90 percent of U.S. companies<br />
will be using social media in some way by next year. (80 percent<br />
already do.) But according to a recent PRWeek report, more than<br />
a third of all companies don’t have a point person responsible for<br />
social media within their organizations, let alone the commitment<br />
that calls for more than a solitary person for social media. We’ve<br />
outlined three areas of focus around strategic social media for<br />
marketing organizations, some immediate ways to get there<br />
and how to integrate agencies with an in-house staff.<br />
All CMOs want the same thing: to make their organizations much more customercentric<br />
rather than focused on products and channels. But to embrace the<br />
customer today means getting much more serious about social media. As we<br />
continue to see, social media transforms not only the way brands communicate,<br />
but also encompasses other marketing functions including customer service,<br />
research, social databasing and product development.<br />
Social media continues to rapidly evolve. We know from eMarketer that nearly 90<br />
percent of U.S. companies will be using social media in some way by next year.<br />
(80 percent already do.) 1 But according to a recent PRWeek report, more than<br />
a third of all companies don’t have a point person responsible for social media<br />
within their organization, let alone the commitment that calls for more than<br />
1 “Social Media Survey 2010,” PRWeek, September 1, 2010, http://www.prweekus.com/<br />
pages/login.aspx?returl=/social-media-survey-2010-the-social-connection/article/177511/<br />
&pagetypeid=28&articleid=177511&accesslevel=2&expireddays=0&accessAndPrice=0.<br />
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a single person to manage social media. The reality is that many<br />
companies are still experimenting and delegating social media<br />
to junior staff and a patchwork of agencies. That has to change<br />
if brands are going to take full advantage of the power of<br />
social media.<br />
Here are three areas of focus on strategic social media for<br />
marketing organizations, some immediate ways to get there<br />
and how to integrate agencies with an in-house staff.<br />
1. eMBrace YoUr new strateGic asset — a FaceBooK<br />
Brand coMMUnitY<br />
The last few years of social media activity has rightly centered<br />
on Facebook, the largest platform. We’ve progressed from<br />
the creation of brand pages as an experiment and come to<br />
the understanding that today these pages are strategic assets<br />
in the form of large-scale communities. Among the top 100<br />
brands today, the average fan base amounts to over 7,000,000<br />
2 “PageData,” Inside Network, August 2011, http://pagedata.appdata.com/.<br />
3 Sean Corcoran and Christine Spivey Overby, June 2, 2011, “Accelerating Your Social Maturity,” Forrester,<br />
http://www.forrester.com/rb/Research/accelerating_social_maturity/q/id/59690/t/2#figure3.<br />
it’s nOt enOuGh tO Be Liked — GettinG seriOus aBOut sOciaL<br />
of companies say they<br />
lack the people on their<br />
teams to manage channels<br />
in the social space.<br />
“likers,” which is something truly remarkable in such a short<br />
time. 2 And while fan count isn’t the best gauge of an effective<br />
social media program, it offers a great head start for a brand<br />
to activate this new strategic asset.<br />
Consider how shabbily most brands organize around this<br />
asset. Many outsource this increasingly important platform<br />
to an outside agency. And it’s not just Facebook. Management<br />
of Twitter profiles and YouTube channels are also being<br />
outsourced. What should be a core in-house function,<br />
is relegated to the periphery, with only half-measures to deal<br />
with ongoing customer service, fan activation and ultimately<br />
product and service innovation through community co-creation.<br />
Of course, many brands find an agency to offer these services<br />
because the brand can’t staff these social media channels<br />
properly. According to Forrester, more than 50 percent of<br />
companies say they lack the people on their teams to manage<br />
channels in the social space. 3 And agencies are all too eager
to sell-in another service offering. (Full disclosure: Razorfish<br />
provides community management services and currently<br />
manages several types of social media platforms on behalf of<br />
our clients.) But the nature of this outsourcing needs to evolve.<br />
Philosophically, a brand should manage its own community —<br />
providing transparency and authenticity to its customer base,<br />
as well as operational efficiency. Agency community managers<br />
can get in the way, creating a barrier between the brand and<br />
its customer.<br />
It’s not as difficult today for an organization to hire seasoned<br />
community managers as it may have been just a few years back.<br />
We are seeing resumes from candidates who manage social<br />
media channels for small companies now looking to step up<br />
to bigger brands. Posting an opening on Monster or Mashable<br />
is often a way to get things started. The big decision in hiring<br />
the right resource centers around a candidate’s ability to blog/<br />
post/tweet in the right social voice for the brand — this skill is<br />
an art, not a science, and shouldn’t tilt all the way to an overly<br />
polished and copy-written approach.<br />
Another consideration is where within the organization these<br />
resources should reside. We see lots of different configurations<br />
here. To be truly serious about social media, we advocate dedicated<br />
roles, starting within the marketing team, for community managers.<br />
DeVry University, a client, has created a successful model where<br />
three community managers — each aligned to key audiences<br />
of students, alumni and prospects — reside within the marketing<br />
department and report up to a director of social media.<br />
Even though an organization may have an in-house social<br />
media team, an agency still has an important role to play.<br />
But this role should be strategic and creative, acting behind<br />
the scenes as a force multiplier, rather than replacement for<br />
a brand’s direct participation.<br />
Here are some key ways in which an agency can shift from tactical<br />
community management to strategic community development:<br />
strateGic activation. By representing the consumer, the agency<br />
is in an ideal position to define the role that social media can play<br />
for the client’s brand and business. This process gets beyond<br />
using Facebook as a channel for communication, where content<br />
and interaction is aimlessly posted and fan accumulation becomes<br />
the mere end goal. The real purpose is to identify and develop<br />
the unifying concept for why a consumer should and would<br />
interact with the brand in a social way. Sometimes this is obvious,<br />
especially for high-interest brands, but it’s much more challenging<br />
for Consumer Packaged Goods (CPG) brands where getting<br />
beyond the product is essential for true success. And typically<br />
this approach not only defines a brand’s social media efforts,<br />
but also their digital marketing efforts as a whole.<br />
oPPortUnistic oversiGht. While brands should focus on<br />
ongoing community management, the agency shadows the<br />
brand team looking for strategic and tactical opportunities<br />
to add value to the conversation and content. Taking advantage<br />
of in-the-moment opportunities, such as a brand mention by<br />
a celebrity on Twitter or a relevant video that’s getting traction<br />
on YouTube, are a few examples where agency resources<br />
should provide another set of eyes and ears for the brand team.<br />
A framework for this “and pounce” approach can easily be set<br />
up immediately.<br />
2. inFUse sociaL research into the MarKetinG orGanization<br />
The social research space is still in its infancy, but brands<br />
need to rapidly infuse the various elements of social media<br />
intelligence into their marketing and business process.<br />
Let’s start with listening. While conversational monitoring<br />
around a brand’s products and competition is standard<br />
operating procedure, true listening hasn’t impacted most<br />
organizations yet. At Razorfish, we are testing listening research<br />
to inform a number of different types of marketing functions.<br />
Take media planning, for example. While the traditional<br />
approach to developing a media plan is first to analyze how<br />
a specific audience can be targeted across a range of media<br />
options — including TV programming, print vehicle and digital<br />
channels — listening research provides a whole new approach.<br />
Armed with listening data, the media planner can determine<br />
where conversations around an industry category is taking<br />
place, and therefore where a paid message may find more<br />
receptivity, or where launching a social media program might<br />
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Which is worse: a brand starting out<br />
with few fans and followers, or a brand with<br />
millions who are treated as if they are<br />
indistinguishable from one another?<br />
spur engagement for the brand. For Best Buy, social listening<br />
techniques were used to identify partnership opportunities<br />
in the gaming space such as Comic-Con. Razorfish gathered<br />
insight around hardcore gamers — determining what events<br />
and game titles drove the largest spikes in relevant discussion.<br />
By partnering with such events, Best Buy was able to create<br />
brand affiliation with gamers and generate authentic gaming<br />
content that could then be redistributed through earned<br />
and paid channels.<br />
Another way we are testing listening research is rapid insight<br />
development. A recent poll conducted on one of our client’s<br />
Facebook pages yielded more than 1,000 comments in less<br />
than 24 hours. These comments provided a wealth of insight<br />
into how customers use this product, which strategists and<br />
planners can use to inform future marketing programs and<br />
even product innovation. We know we’ll see rapid insight<br />
development evolve into research dashboards, piping this<br />
real-time information directly to the planning and strategy<br />
teams and allowing follow-up questions back to the community.<br />
How to make this happen in your organization? Here are some<br />
key ways in which social research can be infused into the<br />
marketing process quickly:<br />
it’s nOt enOuGh tO Be Liked — GettinG seriOus aBOut sOciaL<br />
start with a Basic ListeninG aUdit. This can be a brief report<br />
that determines who is talking about your brand, category and<br />
competitors over a short look-back window of, say, three months<br />
to a year, in order to capture seasonality of conversation. This<br />
isn’t rocket science, rather a tried and true way to get grounded<br />
in the conversation. Even for socially established brands, ask<br />
yourself: When was the last time you conducted a point-in-time<br />
listening audit?<br />
Use a hYBrid aPProach to ListeninG. The growing need for<br />
conversation monitoring measurement and mining has led to<br />
a flurry of new social listening tools, many of which have very<br />
unique capabilities. For example, Radian6 has access to one<br />
of the largest data pools and satisfies monitoring requirements,<br />
but NetBase takes a conversation quality approach and uses<br />
natural language processing to identify key themes and categorize<br />
sentiment. However, neither tool is effective without the analysis<br />
of a subject matter expert. The most important tool when trying<br />
to distill millions of pieces of social conversations is a pair of<br />
human eyes. We recommend taking a hybrid approach to social<br />
listening by choosing tools like NetBase, which can categorize<br />
content by sentiment and discussion theme, while also employing<br />
an analyst who is immersed in the brand to put the findings<br />
into context.
anaLYze FaceBooK insiGhts. Compare Facebook to your other<br />
communication channels and you might find that your fans<br />
are different than the consumers you think you’re targeting.<br />
And then solve for why. For a Kellogg Company brand, we<br />
discovered that the audience the brand wanted to target —<br />
men, ages 18-24 — was very different from the fans of their<br />
Facebook page, which was skewing 90 percent female. This<br />
naturally leads to a shift in social voice and content creation.<br />
3. Get on the Path to trUe sociaL inFLUence MarKetinG<br />
Day by day, brands continue to fine-tune ways to engage their<br />
customers in the social space. But too often this process involves<br />
throwing content against the proverbial wall, and just seeing<br />
what sticks. Even when the best social editorial calendars<br />
are developed and deployed, we still aren’t starting from<br />
a place of strategic insight and personalized engagement.<br />
However, it’s not as if brands aren’t successful with this<br />
generalist approach — they continue to grow their fan base.<br />
Ask yourself which is worse: a brand starting out with few fans<br />
and followers, or a brand with millions of fans that are treated<br />
as if they are indistinguishable from one another?<br />
What’s missing is an understanding of the customer’s needs,<br />
why they became and continue to be a fan of the brand and<br />
how they influence one another. This is as simple as social<br />
personification. Armed with this information, brands can tailor<br />
their interaction more specifically. Yes, it’s difficult to segment<br />
today, but this is going to change as social networks evolve.<br />
Case in point: Google+ and its model of Circles. Over time,<br />
this characterization of a person’s social relationships may allow<br />
a closer, more personalized interaction between customers<br />
and brands as well. We aren’t there yet, but the concept behind<br />
Circles is our future.<br />
Waiting around the corner, then, is greater intelligence on<br />
a brand’s social graph, which quickly leads to an understanding<br />
of what the most important influencers are. More importantly,<br />
we will be able to have granularity around influencers in<br />
a segmented way. For example, we will have ways to activate<br />
the “deal-seeking influencers” looking to make noise about<br />
a promotion, or the “category enthusiast” influencers, hungry<br />
for new product news and willing to share it with their circle.<br />
How to start down this path for your organization? Here are<br />
some key first steps:<br />
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Fan cateGorization. At a basic level, this is about how<br />
a customer wants to interact with a brand in social media.<br />
Do they want help with customer service issues, receive product<br />
information or get special offers? Start by stepping back<br />
and look at customer behaviors that inform how to structure<br />
community content. A great first step might be to assess user<br />
posts and comments and categorize them by interest. Next,<br />
design polls to further gauge areas of interest to the fan base.<br />
sMart data coLLection. Another way to understand your fan<br />
base is to ask for user data when appropriate. Signing up to<br />
receive special offers or exclusive content is a no-brainer, but<br />
it’s surprising how many brands don’t take advantage of this<br />
opportunity. By providing different opportunities to collect<br />
an email address, users begin to self-categorize by interest.<br />
Having opted-in to a particular interest — for example, new<br />
product information — you can now deliver more relevant<br />
communications. In turn, as users talk and share this information<br />
across their social networks, you have the beginnings of a<br />
tagged influencer database.<br />
it’s nOt enOuGh tO Be Liked — GettinG seriOus aBOut sOciaL<br />
Get FaMiLiar with GooGLe+. While user adoption and usage<br />
is still an issue, Google is re-architecting how we group our<br />
friends and colleagues through Circles. If you haven’t tried<br />
it yet, give it a test run.<br />
Three listening tools to watch:<br />
• netBase: Best-in-class natural language processing that<br />
helps categorize sentiment by theme and intensity.<br />
• evoLve24: Strong social listening capabilities — large data<br />
pool, topic categorization, trend analysis and the ability<br />
to merge digital and traditional media data, which is a very<br />
unique feature.<br />
• sentiMent 360: Semantic AI-based sentiment analysis<br />
that provides a high degree of accuracy (industry leader),<br />
while also automatically ranking content for relevance<br />
and conversation type.
WRITTEN BY<br />
READ MORE<br />
Jonathan Hull<br />
VP, Emerging Experiences<br />
@hULLjON<br />
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Controlling the<br />
Retail Environment<br />
Through Digital<br />
Brand Immersion<br />
Although touch screens have dramatically altered consumer<br />
expectations, retailers have mostly struggled to deploy innovative<br />
digital experiences at scale beyond basic store navigation or<br />
the occasional integration of tablets. In a world where everything<br />
is increasingly available everywhere, wowing customers to drive<br />
sales is more important than ever. As a result, innovative digital<br />
experiences are increasingly challenged to move from the lab<br />
or the presentation deck to the sales floor. We have identified five<br />
factors to drive implementation and move from prototype<br />
to improved customer experience.<br />
Retailers have lost control of their stores. For that, you can blame the smartphone.<br />
The proliferation of the iPhone and Android-based devices has dramatically altered<br />
consumer expectations and behaviors. Life is increasingly lived online and mobile<br />
devices act as always-there, always-on valets. In just about any environment,<br />
people want to be online — communicating, sharing and researching. This is<br />
especially true in stores, where consumers can use their mobile Web browsers<br />
and apps to compare prices and products across retailers. When threatened<br />
with commoditization, retailers see their margins come under pressure from being<br />
the lowest price option or price matching. And what’s strange is that the store<br />
owners are letting this happen by not giving shoppers the digital experiences<br />
they so clearly want. Some of the more progressive retailers and brands have tried<br />
to regain some control and become more digitally interactive in-store. However,<br />
in talking with our retail clients, they often cite past failures and/or implementation<br />
constraints as primary reasons why they haven’t made much progress.<br />
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To be successful, retailers and brands must<br />
value the creation of an experience<br />
over the enabling of technologies.<br />
A big distraction that keeps some retailers from making progress<br />
is their Apple Store envy. Almost every retailer we’ve worked<br />
with cites the Apple Store as best-in-class, the benchmark for<br />
what they aspire to be. This is a head scratcher. While there’s<br />
no doubting that the Apple Store model gets many things right,<br />
it also has its shortcomings — There are no immersive digital<br />
experiences in the Apple Store. Customers interact directly with<br />
the products, which is good, but there’s no way to compare<br />
Apple computers to PCs. There is no way to digitally configure<br />
and personalize products, and no articulation of the Apple value<br />
proposition or how Apple makes your life better. This leads<br />
many retailers to conclude, “If Apple doesn’t feel immersive<br />
digitally in-store then why should we?”<br />
So how does Apple get away with this? Because they’re Apple.<br />
Cupertino has several advantages over the average retailer:<br />
strong brand affinity, sexy product lines, knowledgeable,<br />
enthusiastic and digitally-enabled sales associates and strong<br />
customer support. The cold, hard truth is that the vast majority<br />
of retailers can never be like the Apple Store. But retailers can<br />
deploy immersive digital experiences to inspire customers,<br />
elevate their products and educate consumers. Wannabes<br />
need to forget the Apple Store and create their own digital<br />
retail identity.<br />
cOntrOLLinG the retaiL enVirOnment thrOuGh diGitaL Brand immersiOn<br />
To help get there, we’ve identified five factors for driving adoption<br />
and dealing with implementation constraints while creating what<br />
we call the “brand wow effect” within the retail environment.<br />
1. LeveraGe the PhYsicaL<br />
For retailers, brick-and-mortar stores still have two big advantages:<br />
physical space and sales staff. Physical stores offer a huge<br />
home-field advantage and, even though consumers are more<br />
informed and digitally connected, they still seek out the in-store<br />
shopping experience. Why? Because there’s no better way<br />
to tangibly experience a product prior to purchase. There’s<br />
also social and entertainment value that consumers place<br />
on shopping experiences. So retailers should look to digitally<br />
enhance, not replace, the shopping experience.<br />
For brands, differentiation is difficult when similar products<br />
are compared side by side. Immersive digital experiences are<br />
a great tool for educating consumers on the value proposition<br />
of products as well as cross-selling accessories. We have<br />
observed that digital experiences can lead to an 11 percent<br />
increase in the average basket and a 20 percent increase<br />
in accessory sales.
One of the best uses of immersive digital in-store is to serve<br />
the demand for personalization. Consumers want configurable,<br />
personalized products but they struggle with complex buying<br />
decisions. Interactive touchscreens and gestural experiences<br />
are excellent for providing customers with the ability to configure<br />
and personalize products to fit their needs. That’s something<br />
smartphones don’t do well. These experiences create a deeper<br />
affinity for a retailer or brand, leading to up to a 10 percent<br />
increase in customer satisfaction.<br />
One of the biggest myths about immersive digital in-store is that<br />
it’s focused on self service. Actually, the opposite is the case<br />
in the retail world. Retailers in general are not looking to add<br />
staff, but almost every retailer is looking to make their sales<br />
associates more effective. Burberry has equipped associates<br />
in China with iPads to provide better access to online and offline<br />
inventories, while JCPenney has done the same to assist with<br />
complicated bridal jewelry purchases.<br />
Whether it be arming sales associates with tablets or providing<br />
touchscreens for consumers to co-experience, the results have<br />
averaged a 4 percent increase in sales associate satisfaction<br />
and less turnover. According to Deloitte, retail leads all industries<br />
in adopting tablets. Their study predicts that 25 percent of all<br />
tablet computers will be bought by businesses this year and<br />
the number will continue to rise. 1<br />
2. vaLUe the exPerience over the technoLoGY<br />
It’s the customer experience — not the technology — that<br />
makes the difference. Customers shop in stores for reasons<br />
ranging from pure utility to entertainment. Customers shopping<br />
out of necessity don’t care about technology, they just want the<br />
experience to be easy. Customers shopping for entertainment<br />
are seeking pleasure, and technology must enable that<br />
experience. A retail experience done right is an experience<br />
that takes advantage of ubiquitous computing; where technology<br />
fits into the human environment instead of humans being forced<br />
to use technology. Put another way, it’s when consumers know<br />
1 Jeffrey Grau, “How the iPad is Transforming Retail,” eMarketer, May 1, 2011.<br />
they’re engaging in an experience as opposed to experiencing<br />
a technology — a key to driving adoption. It’s surprising how<br />
many companies get this wrong.<br />
A good history lesson in getting it wrong is the failure of the<br />
first-generation kiosk, one of the most cited reasons why retailers<br />
that have failed at digital in-store are reluctant to do it again.<br />
Most kiosks were simply an idea the online channel teams —<br />
not the retail teams — dreamt up to gain a Web site presence<br />
in stores. The draw of easy implementation and the repurposing<br />
of the online investment was irresistible. So they packed their<br />
stores with cheap kiosks made of pressboard and Formica<br />
that were outfitted with a browser-equipped PC, a low-res CRT<br />
monitor, mouse and keyboard. Then, they waited for the orders<br />
to flow in. They’re still waiting.<br />
Why did they fail? Customers didn’t use them. Why didn’t<br />
customers use them? Because the experiences sucked. Lesson<br />
learned, successful implementations of technology do not<br />
determine success — customer adoption determines success.<br />
Many retailers never stopped to wonder why a customer would<br />
stand in front of a Web site in a store when they could surf the<br />
Internet from the comfort and privacy of their own home. They<br />
ignored the fact that the retail experience is unique and special.<br />
There are specific reasons why customers are there in the first<br />
place. The chief result was thousands of ugly kiosks sitting<br />
in the corner unplugged and collecting dust.<br />
To be successful, retailers and brands must value the creation<br />
of an experience over the enabling of technologies. Even today,<br />
there is a wide disparity between retail technology spend and<br />
experience spend. Large retailers and brands budget tens of<br />
millions of dollars on hardware and technology to outfit their<br />
stores, but only spend tens of thousands of dollars on the<br />
experiences. Since adoption is the primary key to success,<br />
the imbalance between technology and experience budgets<br />
must shift. Customers don’t care what technology is under<br />
the covers. If an experience provides value, they’ll adopt<br />
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it. According to eMarketer, “Retailers are looking to digital<br />
technology to help influence consumer decisions at the shelf<br />
level, while also aiming to streamline and ease the shopping<br />
process. Consumers are also receptive to digital technologies<br />
deployed in-store when they receive a tangible benefit.” 2<br />
3. Be as cooL as (iF not cooLer than) a sMartPhone<br />
These days, digital in-store has to be at least as cool as the<br />
device your customers are carrying in their purse or pocket.<br />
This might seem contrary to the statement above; valuing<br />
experience over technology. On the contrary, it’s not what the<br />
technology is or how it works; it’s what the technology does.<br />
The smartphone does a hell of a lot for a device that costs<br />
a few hundred bucks. It’s a portable communication device,<br />
data store and entertainment platform with tons of utility.<br />
So why not just enable mobile apps in stores? Because customers<br />
did not go to the store to use their mobile phones. They’re there<br />
to shop and experience shopping. Digital needs to complement<br />
and enhance the retail shopping experience, and to do so<br />
2 Tobi Elkin, “Shopper Marketing Insight: Embracing Digital Touchpoints,” eMarketer, January 7, 2011.<br />
cOntrOLLinG the retaiL enVirOnment thrOuGh diGitaL Brand immersiOn<br />
effectively, it needs to be more immersive and more engaging<br />
than your customer’s mobile device.<br />
Size does matter — attraction and engagement are more keys to<br />
adoption. Big, high-definition digital displays are hard to ignore<br />
but they must enable an experience that helps customers connect<br />
with a brand. For example, JCPenney’s in-store deployment of its<br />
Findmore smart fixture experience inspires customers to digitally<br />
shop by look — leveraging a 42” high-resolution touchscreen,<br />
rich content and an extended online and offline assortment.<br />
Immersive digital experiences have a 53 percent higher attraction<br />
rate over traditional digital signage. To be clear, we’re talking<br />
about inspiring customers in order to drive sales, not servicing<br />
customers like they’re at an ATM. (That said, it’s worth noting<br />
that digital is great for servicing customers as long as the<br />
experience is private and optimized for the relevant task at hand.)<br />
For driving sales, it’s all about digital experiences that attract<br />
and engage customers. However, that’s not to say every retailer<br />
needs to panel the walls with HDTVs. First, focus on getting<br />
the experience right: Immersive digital experiences need to
e discoverable and unfold through rich and pleasurable paths.<br />
Then, test and measure different form factors to see what produces<br />
the highest payback.<br />
4. hiGh tech is not aLwaYs Good tech<br />
A big distraction that keeps<br />
some retailers from making progress<br />
is their Apple Store envy.<br />
Another often-cited reason why brands and retailers don’t have<br />
immersive digital experiences in-store is due to IT infrastructure<br />
limitations. Every business wants an elegant, service-oriented<br />
IT infrastructure where all data is available in real-time but few<br />
have it. The digital ecosystem is changing too quickly to wait<br />
for IT to get their ducks in a row. To make progress quickly in<br />
the digital space, companies need to embrace some oldie-butgoodie,<br />
low-tech solutions and leverage cloud computing.<br />
One of the most low-tech, yet innovative, approaches to system<br />
integration came from a large retail telecommunications brand<br />
that recently went through a major acquisition. The IT integration<br />
price tag of enabling every digital order to seamlessly flow<br />
through the system was $125 million. A quick cost-benefit<br />
analysis showed that it was much less expensive to hire staff<br />
to manually process digital orders that fall out of the system<br />
over a 10-year period. The process is nicknamed “swivel-chair,”<br />
referring to how an associate pulls an order exception off<br />
a printer, then swivels their chair to manually enter the order<br />
into a couple of other systems. In today’s IT world, this oldschool<br />
approach is cost effective, if not innovative.<br />
Cloud computing also offers an IT shortcut in many situations.<br />
In the past year, Razorfish leveraged the cloud to successfully<br />
launch 5,000 Windows Phone 7 touchscreens into the global<br />
retail market in eight countries and nine languages. Working<br />
against severe retailer infrastructure constraints across the globe,<br />
the solution hosted analytics and content management in the<br />
cloud and the experience was deployed in a six-month period.<br />
The moral of the story is that retailers shouldn’t be afraid to kick<br />
the IT integration can down the road. The low-tech solution is<br />
often the right one for businesses, and there are plenty that are<br />
tried and true, from batch processing to manual intervention.<br />
The only must-have system is a solid measurement framework<br />
where performance and success is measured — and hosted<br />
in the cloud, if necessary.<br />
5. PiLot don’t PrototYPe<br />
The ideal approach to getting immersive digital experiences<br />
into retail stores is to align against a well-defined, overarching<br />
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strategy or vision. Since the digital retail landscape is evolving<br />
quickly, any vision needs to be mapped out quickly — a matter<br />
of weeks, not months. However, the realities of the retail business<br />
and the need to get something done quickly often outweigh<br />
the luxury of developing an overarching strategy. We commonly<br />
we hear from our retail clients:<br />
• “We want to get innovative ideas to market quickly.”<br />
• “What we need is a clickable prototype to show our<br />
executives.”<br />
• “If the prototype is successful, we may get buy-in for<br />
a large-scale rollout.”<br />
It’s true that most of our clients need to introduce innovative<br />
digital experiences into the market quickly, but it’s not true<br />
that they need a prototype. What they need is a pilot.<br />
Following a prototype methodology is the most time-consuming<br />
and costly path for getting digital retail experiences to market.<br />
Prototypes are usually exercises in technology and since they<br />
never enter the market, there’s not a lot to learn and business<br />
effectiveness is not measured. Another disadvantage of prototypes<br />
is the risk of someone beating you to market. If you’re onto a good<br />
cOntrOLLinG the retaiL enVirOnment thrOuGh diGitaL Brand immersiOn<br />
If the goal is to get something<br />
into market quickly, then you<br />
should pilot. Don’t waste time<br />
and budget on a prototype.<br />
idea, chances are someone else is too — probably a competitor.<br />
Our point of view is that prototypes are only useful for proving<br />
functionality that: 1) is absolutely critical to success and<br />
2) carries a sufficient risk of failure. If neither of these are true,<br />
Razorfish strongly advocates piloting over prototyping.<br />
If the goal is to get something to market quickly, then you<br />
should pilot. Don’t waste time and budget on a prototype.<br />
Pilots carry higher upfront costs because the experiences must<br />
be developed to the point where it starts and ends logically for<br />
a customer. And pilots have to be fully tested. However,<br />
only pilot experiences provide learnings from real customers<br />
interacting in retail environments. The costs of pilots can<br />
be limited by keeping the scope to core functionality and<br />
a statistically significant number of stores. For example,<br />
a 1,000-store retailer may be able to limit a pilot to only four<br />
or five stores for six weeks and still provide sufficient learnings<br />
in which broader conclusions can be drawn.<br />
The Razorfish approach for getting immersive digital into retail<br />
is to do so quickly, with the goal of learning and generating<br />
buzz. Since it’s just a pilot, there’s no need to boil the ocean<br />
right out of the gate. Keep the experiences concise and aligned
to key success metrics where performance is measured. Take a<br />
low-tech, low-cost approach to integration and kick the systems<br />
integration down the road. It’s usually much more cost effective<br />
Dos and don’ts<br />
Quickly pilot experiences in real stores with<br />
real customers.<br />
for a sales associate to manually update a few pilot experiences<br />
via “sneakernet” for six weeks, than to integrate to retailer<br />
back-end systems.<br />
Dos Don’ts<br />
Pursue low-tech, low-cost integration methods for<br />
pilot experiences.<br />
Keep experiences focused and aligned against<br />
success metrics.<br />
Focus on the experience more than the technology.<br />
Wow customers with kick-ass experiences better than<br />
what they can’t do on their smartphones.<br />
Waste time with prototypes unless there’s a high risk<br />
that critical functionality won’t prove out.<br />
Wait for IT or elegantly integrate with retail systems<br />
until a pilot proves out.<br />
Try to boil the ocean, solve every customer problem<br />
and answer every question in a single experience.<br />
Confuse technical implementation success with<br />
overall success.<br />
Overly rely on mobile or put the online experience<br />
in store as-is.<br />
Admire the Apple Store. Try to be the Apple Store.<br />
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WRITTEN BY<br />
READ MORE<br />
Adam Heimlich<br />
VP, Search and<br />
Performance Marketing<br />
@ADAMhEIMLICh<br />
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content associated<br />
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Performance<br />
Marketing Must Die<br />
Digital technology has rendered the sales process transparent.<br />
Brands that can recognize this fact have an enormous opportunity.<br />
How the brand wants consumers to feel, what it wants shareholders<br />
to believe, the government to do, the news media to report —<br />
are all revealed in a single set of search results. To effectively sell<br />
within this churning ecosystem of overtly targeted and obviously<br />
unintended messages requires organizational confidence and<br />
openness. Methodically insulated from ideas and salesmanship,<br />
the performance marketer is positioned to distract organizations<br />
from the imminent threat of a revolution in consumer perception,<br />
caused by digital media.<br />
Have you ever received an email offer that looked good until you searched<br />
the name of the product? Ever visited the site of an iconic brand and found it<br />
cheap? Have you seen a funny commercial from a company with an infuriating<br />
online application process? Have you had trouble finding a brand on your mobile<br />
browser because sales affiliates masquerade as it? Can you name a brand that<br />
interacts in the same personality it broadcasts?<br />
The source of all this dissonance: Digital technology has rendered the sales<br />
process transparent.<br />
Brands that can recognize this fact have an enormous opportunity, and no use<br />
for what we call performance marketing, which refers to DR, search, display<br />
advertising and social media. However, it actually describes a set of activities<br />
inadvertently designed to deny the reality of a transparent sales process.<br />
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Introduce the right motivation,<br />
the right skills and the right process<br />
for media optimization.<br />
The problem with the performance marketing organization is<br />
its separation from the sales, service and merchandising teams —<br />
which is to say, from everyone directly involved with customers<br />
in any capacity. The performance marketing team is also<br />
traditionally walled off from second-hand research into<br />
customers and their preferences, which features insights<br />
of value for creatives, whose task of connecting emotionally<br />
is widely perceived to be the opposite of performance marketing.<br />
Methodically insulated from ideas and salesmanship, the<br />
performance marketer is positioned to distract organizations<br />
from the imminent revolution in consumer perception caused<br />
by digital media.<br />
The reality<br />
Today, everyone sees brands naked, except their marketing<br />
executives, who praise the lavish new clothes of performance.<br />
Sales transparency means the end of efficacious channel<br />
marketing. The salient point of a channel is physical<br />
confinement — as a metaphor for media, it makes as much<br />
sense as “dialing” a phone. Because messages spill out<br />
of their containers in a manner more un-channel-like than<br />
perfOrmance marketinG must die<br />
previously imaginable, smart brands assume any consumer<br />
might see any message, regardless of whether a message is<br />
intended for them. These brands aspire to sell with nothing to<br />
hide. The assumption behind performance marketing, in contrast,<br />
is that inconsistent, inferior or irritating online communications<br />
are no more dangerous than a bit of junk mail.<br />
Brands that issue communications for specific purposes are,<br />
in fact, mostly creating awareness — not of the brand’s “story”<br />
but of its value, which tends to make for a more interesting<br />
narrative. How the brand hopes consumers will feel, how it<br />
actually regards them, what it wants shareholders to believe,<br />
what it wants the government to do and what it wants the news<br />
media to report are all are revealed in a single set of search<br />
results. To effectively sell within this churning ecosystem of<br />
overtly targeted and obviously unintended messages requires<br />
organizational confidence and openness.<br />
Performance marketing teams, on the other hand, sustain<br />
antiquated beliefs in messaging and measurement, separate<br />
from sales and service. They reenact a historical drama of<br />
sequenced stimulus and response, pretending that their<br />
audience is playing within the arbitrary rules they’ve created.
The word “performance” itself accidentally attests to the<br />
theatrical nature of digital media “roles.” The ostensible actor<br />
is not prospects or customers, but a featureless outline of their<br />
activity captured in data. It’s a shadow play, designed to fool<br />
and delight a willing audience.<br />
For example, every Razorfish client has goals around customer<br />
acquisition and retention. But almost no Razorfish clients task<br />
their performance teams with optimizing media toward these<br />
goals, though the data is always accessible. Similarly, every<br />
Razorfish client wants their Web site to engage visitors, yet<br />
nearly all performance managers ignore their bounce rates.<br />
And all performance clients want more digital sales, but none<br />
try to discover the optimal context, sequence and content<br />
of messages that lead to digital sales.<br />
Brands’ willingness to buy into performance marketing despite<br />
its inability to harness the power of digital gives the game away.<br />
Their function is to keep the problem under the rug for now,<br />
and to carry the blame for “underperformance” should a more<br />
adaptive competitor enter the market.<br />
The solution<br />
Replacing performance marketing with something that can<br />
impact the bottom line is a matter of three corrections: Introduce<br />
the right motivation, the right skills and the right process for<br />
media optimization.<br />
Motivation can only come from the top. If the one or two leaders<br />
responsible for all the customer interactions influenced by or<br />
measured in digital media don’t acknowledge that transparency<br />
makes performance counterproductive, no one can. That’s the<br />
first step toward dismantling performance marketing’s regime<br />
of specialized expertise and fragmented accountability.<br />
To supply the right rationale, leadership must specify goals<br />
for all media — paid, earned and owned, online and offline.<br />
Note that a CMO’s request to assess how its various media<br />
efforts function together cannot be met under existing corporate<br />
structures. Generally, the performance team has broadly applicable<br />
data, while its people function as a specialized machine focused<br />
exclusively on online sales or some other isolated measure of<br />
activity. Brand affinity, customer retention and creative teams’<br />
ability to influence and persuade are optimized separately and<br />
slowly, with data sets less fresh or actionable than what is<br />
collected constantly through digital channels.<br />
To retool the optimization process to account for all marketing<br />
goals simultaneously, a CMO must task channel teams with<br />
expressing shared goals in compatible — which usually<br />
means chiefly digital — terms. That is, if reach is a proxy<br />
for effectiveness, the effect should be validated. While paid<br />
search collects sales, its brand impact can’t be ignored.<br />
It may seem easier to manage against baseline costs and<br />
conversions, but customers aren’t as numb as marketers<br />
are to the sense that a company is chronically undervaluing<br />
digital operations or brand building. They know when the<br />
company Web site is useless, or they’re getting hit with 10<br />
discount offers a day. Transparency means that biased or<br />
arbitrary communication choices will play out in public. Without<br />
consistency of measurement, there is no justification for valuing<br />
any marketing action over any other. Additionally, there is no<br />
basis for optimizing marketing actions in combination across<br />
channels, which is how they are always experienced nowadays.<br />
This requires big change. And there will be chafing.<br />
A performance marketer veering away from the usual charade<br />
is like a retail cashier reallocated to the sales floor, only worse.<br />
Although no VP is responsible for addressing total brand<br />
perception in a customer setting, brands’ service staffs effectively<br />
have that job. Compare their qualifications for meeting customers<br />
in their space to those of the performance marketer, whose<br />
putative value is rarified “expertise” with spreadsheets<br />
and software.<br />
Implementing the right skills starts with a reassessment of<br />
the value of quantitative experts to digital marketing efforts.<br />
There is no doubt that data analysis and predictive modeling<br />
are important. No less certain is that a feel for what’s<br />
behind activity data and a knack for imagining scenarios not<br />
explicitly supported by the numbers are also required for<br />
media optimization. Many marketing organizations staff for<br />
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targeted digital media as if its challenges were linear, and the<br />
optimization process mechanical. Early successes in social<br />
media have clarified how unspecialized and playful in its<br />
approach even a very serious interactive brand should appear.<br />
That comes from an appreciation for the softer side of digital.<br />
Get started<br />
A good place is to start is including people with sales and<br />
creative experience on the optimization team. However, the<br />
turning point in digital marketing skills correction comes from<br />
leadership that is as engrossed in misses, as it is in hits.<br />
Brands that want marketers to automatically deal out optimal<br />
responses to customer actions task them with learning above all<br />
else. It’s in the broad application of patterns of consumer action<br />
to brand operations that marketing results can be dramatically<br />
improved, so aspire to replace performers with teachers.<br />
A necessary casualty of a shift from expert posturing to reflexive<br />
learning should be in the performance marketer’s toolset. If the<br />
performance data software is too old to support channelagnostic<br />
feedback for holistic optimization, it should probably<br />
be scrapped. The good news is the replacement can be much<br />
more user-friendly. Software built for performance marketers<br />
tends to be opaque because performance marketing itself was<br />
designed to deny visibility.<br />
perfOrmance marketinG must die<br />
The right process for digital media optimization features universal<br />
accessibility to data feedback and common knowledge of goals.<br />
A marketing organization in which teams keep secrets from<br />
each other is unlikely to optimize transparent communications.<br />
On the other hand, shared responsibility for published results<br />
sets good teachers free. Where goals are intertwined, such as<br />
brand perception and retention, site engagement and product<br />
awareness, or SEO rank and social campaign adoption,<br />
collaboration is easily incentivized. Where interests compete,<br />
such as share of voice versus lead conversion efficiency,<br />
leadership must be accountable for balancing power, and for<br />
trade-off decisions aligned with current business strategy.<br />
Automatic optimization, far from a mechanical specialty,<br />
is mostly engaged marketers entitled to act.<br />
An organization so adapted to current media reality would find<br />
it hard to ascertain where its digital optimization team begins<br />
and ends. Like its customers, the marketing department<br />
would be constantly aware of what it’s trying to do and why.<br />
Competitors who place accountability for digital success<br />
in a dungeon where no idea or insight can penetrate will start<br />
to look shackled indeed.
WRITTEN BY<br />
WITH CONTRIBUTOR<br />
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Ken Hong<br />
Managing Director,<br />
Razorfish China<br />
LINKEDIN.COM/IN/KENLIzhOUhONg<br />
William Lidstone<br />
Executive VP,<br />
Razorfish International<br />
@WILLIAMLIDStONE<br />
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content associated<br />
with this article.<br />
Toward a New<br />
Global Digital<br />
Agency Structure<br />
While digital efforts are increasingly integrated into the core<br />
duties of global marketers, Razorfish has found marketing<br />
executives continuing to express a high degree of frustration<br />
with the number of partners and complexity associated with<br />
managing digital programs globally. Razorfish has identified<br />
the disadvantages of traditional models, driving factors that put<br />
those models under intense pressure and potential solutions<br />
to the problems, including the centers of excellence model.<br />
Matching luggage might be a good travel strategy, but it comes up short as an<br />
organizational principle for a global ad campaign. That desire to have all the<br />
creative around the world look like it’s part of a set created in the same factory,<br />
by the same designer, is an old one. And yet, it lingers as digital efforts are<br />
increasingly integrated into the core duties of global marketers. The effect,<br />
we’ve found, is that marketing executives are frustrated with the number of<br />
partners needed to manage global, digital programs and the complexity it breeds.<br />
Old structures created to localize traditional media like print and out-of-home<br />
often create mediocre digital creative, inefficiency and quality control problems.<br />
Clearly, a new model is needed. It has to be lean, yet with a big enough footprint<br />
to ensure global brand consistency. And it needs to be efficiently organized so<br />
it can deal with one of the biggest challenges facing digital advertising — global<br />
scarcity of talent. We believe that the centers of excellence model that’s popping<br />
up more and more is a viable replacement for the bloated structures of yesterday,<br />
but before we get to that let’s examine the shortcomings of current models.<br />
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Old models<br />
There are three traditional models, each with major disadvantages:<br />
1. GLoBaL controL with LocaL transcreation/LocaLization<br />
While this helps ensure brand and message consistency, it largely<br />
ignores the often vastly different ways consumers engage via<br />
digital channels in local markets — both in terms of content and<br />
context. As a result, digital campaigns become less impactful<br />
as they are rolled-out across geographies. For example, not<br />
only will social media have a larger portion inside the marketing<br />
mix in China, Western markets are not familiar with local social<br />
media properties. A campaign cooked up in the U.S. or Europe<br />
and then localized for China might not account for this.<br />
2. FULL LocaL LeadershiP<br />
This clearly makes marketing programs more relevant in local<br />
markets, but runs the risk of losing out on building a consistent<br />
global brand experience, and it often leads to a high degree<br />
of inefficiency due to duplicated efforts and investments. In<br />
addition, the availability of digital talent varies between markets.<br />
It is not uncommon, for example, for Russian brands to request<br />
tOWard a neW GLOBaL diGitaL aGencY structure<br />
global, digital executives to be assigned to local markets, or for<br />
marketers in India to request an equivalent standard of digital<br />
creativity and quality as they see in the U.S. or Europe.<br />
3. hYBrid<br />
When implemented well, the hybrid approach allows local<br />
flexibility to react to local market needs, while maintaining<br />
brand consistency and countering some of the redundancy that<br />
comes with the purely local approach. However, the shortage<br />
of experienced digital talent beyond the realm of production<br />
is a real challenge for this model in many markets. As a result,<br />
locally driven digital campaigns tend to be fairly tactical in<br />
nature — particularly in emerging markets — and miss the<br />
impact they could have by fully leveraging global digital<br />
expertise to amplify the campaign.<br />
These models are under intense pressure. First, there’s a shortage<br />
of talent and diversity in local markets. Even in the most mature<br />
markets where agencies not only compete against each other,<br />
but with clients, media owners, start-ups, technology firms,<br />
etc., the pool is dry. The challenge in emerging markets is even<br />
more severe. In addition, the types of talents and skills that<br />
are available in different markets can vary significantly. It doesn’t
Global hubs<br />
Seattle<br />
help that a broad spectrum of digital expertise is needed. The<br />
fragmentation within the sector is enormous and, combined with<br />
the speed of change in media, technology and consumer behavior,<br />
is confronting marketers with a high degree of complexity.<br />
Another challenge is finding the balance between commodity<br />
services and true differentiating offer. Given digital’s relative<br />
youth, marketers often struggle to draw the line between<br />
technology/creative production and innovation. Finally, there<br />
are vast differences by markets. The digital media diet, digital<br />
media properties, technology adoption and content preferences<br />
frequently vary by country and need to be factored into<br />
campaign planning and execution.<br />
A new model emerges<br />
London<br />
Shanghai<br />
Australia<br />
In response to the shortcoming of the traditional structures<br />
and the challenges in designing and deploying impactful digital<br />
programs, we see a new model emerging; a structure around<br />
centers of excellence — such as emerging experiences, social<br />
media, media creativity, analytics, etc. — often in support of the<br />
hybrid model. In other words, a center of excellence as a unit<br />
based on a clearly defined vision and goal, such as becoming<br />
a market leader in cloud computing worldwide. There is no<br />
fixed formula for how to set up such an entity and its size and<br />
organizational structure will depend on the subject, the local/<br />
regional market needs and its geographic scope.<br />
Step one is to analyze existing talent in key markets so that<br />
there’s a basis to extend and build from, and so that there’s<br />
a well-respected leader to attract talent. Assess the availability<br />
and diversity of talent in the respective local markets before<br />
deciding on a hub location. Once the hub is established,<br />
a concerted effort is needed to bundle activities there so as<br />
not to undermine the efforts of building a scale in certain areas.<br />
China is a good example. While it’s a well-known fact that<br />
China lacks local, digital talent in general, thanks to its fast<br />
growth and abundant opportunities, it has become a talent<br />
magnet for the region. More and more talent from markets like<br />
Hong Kong, Taiwan and Singapore are flowing into China and<br />
making up an ever-increasing portion of the workforce. In fact,<br />
the most successful marketers and agencies in China today<br />
are those who can construct effective teams that consist<br />
of talent from different markets in the region.<br />
This approach allows agencies to attract specialized talent<br />
at scale into core locations around the globe. These regional<br />
OUTLOOK REPORT | VOL 10<br />
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88<br />
centers in turn partner closely with local market teams to design<br />
and build breakthrough campaigns. It goes without saying that<br />
local offices still need to employ key digital talent locally but it<br />
alleviates (to some extent), the massive shortcomings in skilled<br />
digital marketers and increases the ability to manage complexity.<br />
The new digital model also builds on the learning that designing<br />
and implementing global campaigns no longer mandates physical<br />
presence in every single market; this is particularly true for tier-two<br />
marketers. When Tourism New Zealand set out to launch its<br />
digitally driven global marketing campaign, it initially engaged<br />
multiple Razorfish offices to plan and execute the campaigns<br />
in parallel. While they had great results in some markets, others<br />
were more challenging. Throughout the process, several offices<br />
emerged with strong and complimentary skills. We both realized<br />
a “hub-n-spoke” model with distinct centers of excellence<br />
probably made more sense. Working together, we established<br />
hubs in Seattle, London and Shanghai to manage their global<br />
campaign. Success no longer depends on the number of people<br />
per market; having physical presence does not equal local, digital<br />
skills. We have already seen improvements on multiple fronts like<br />
communication efficiency and integrated campaign planning.<br />
tOWard a neW GLOBaL diGitaL aGencY structure<br />
A new model is needed.<br />
It has to be lean, yet with a<br />
big enough footprint to ensure<br />
global brand consistency.<br />
So next time when choosing a global digital agency partner,<br />
remember to ask the following questions:<br />
• Where are your centers of excellence globally?<br />
• Why did you select those locations?<br />
• What talent and skills do you have in key local markets<br />
and how do the centers partner with local offices?<br />
• How have you delivered digital innovation —<br />
with positive impact to the bottom line — for clients?<br />
• What are examples of digital campaigns you executed<br />
with significant impact on brand level metrics?<br />
Regardless of what new approach wins, the increased spend<br />
in digital, combined with ongoing shifts in the technology,<br />
consumer, and media landscapes will likely lead to more<br />
pressure on traditional models in the foreseeable future.<br />
The jury is still out on the center of excellence model, but there<br />
is increasing evidence that it’s an efficient way to manage<br />
the complexities of a global campaign.
WRITTEN BY<br />
READ MORE<br />
Paul Gelb<br />
VP, Mobile Practice<br />
@pAULgELb<br />
Scan the QR code<br />
to explore additional<br />
content associated<br />
with this article.<br />
Limited Time to<br />
Prepare for Unlimited<br />
Potential of Mobile<br />
Mobile offers unprecedented reach to marketers, providing<br />
access to consumers anywhere and anytime. Mobile is now<br />
driving a pace of change that is so fast that projections beyond<br />
two years are so unreliable that they can only be considered<br />
conjecture. But make no mistake, mobile will one day surpass<br />
television’s ad spend. Marketers’ greatest challenge in this<br />
decade will be to prepare their companies for a shift in their<br />
business that is unparalleled in terms of speed and scale.<br />
Mobile media has reached a crossroads reminiscent of Bill Gates’ famous insight<br />
from 1996, “We always overestimate the change that will occur in the next two years<br />
and underestimate the change that will occur in the next 10. Don’t let yourself be<br />
lulled into inaction.” This trend was evident in the evolution of online media and<br />
appears to be repeating itself with mobile. Unrealistic short-term expectations aren’t<br />
met and that leads to dismissive attitudes and underinvestment in preparing for<br />
significant long-term change. The unprecedented, dizzying pace of mobile technology<br />
advancement and consumer adoption will make mobile the most disruptive mass<br />
medium, with wide-ranging effects for both advertisers and consumers. Mobile’s<br />
unique functionality creates the potential for more effective and efficient advertising<br />
than ever before. Yet, marketers are still struggling to find operational models that<br />
can execute effectively and efficiently across traditional media and online. In the face<br />
of these difficulties, marketers must learn from the mistakes made a decade ago,<br />
because future consequences will be more severe.<br />
We believe that mobile spending will surpass not only Internet ad spending, but<br />
also television, and have calculated a forecast for when this could occur based<br />
OUTLOOK OutLOOk REPORT repOrt | VOL 10<br />
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92<br />
on reasonable assumptions. Our analysis is described in detail<br />
on page 97. The conservative estimate was 12 years and the<br />
aggressive estimate was 10 years. However, we don’t believe<br />
that identifying the date has any inherent value.<br />
Mobile forecasts have consistently been unreliable and<br />
underestimated. For example, in 2008, the projected number<br />
of Apple mobile operating system (iOS) app downloads by 2010<br />
was 200 million. 1 However, the actual number of downloads<br />
reached 14 billion, 70 times the amount forecasted just two<br />
years earlier. The worst predictions are inaccurate predictions.<br />
More importantly, it won’t matter if this transition occurs in 10<br />
years or 20 years. Recommendations for individual clients have<br />
never been contingent on mass adoption by the industry<br />
at large. Our decision making process is consistently focused<br />
on identifying the right opportunities, allocating optimal resources<br />
and executing at a high level to generate the best measurable<br />
return on investment. The greatest challenges in mobile have not<br />
been related to decisions about if and when to invest in mobile.<br />
Rather, our goals have been to enable clients to keep up with<br />
Annual $ ad avenue growth — first 14 years<br />
$ MiLLions<br />
$24,000<br />
$21,000<br />
$18,000<br />
$15,000<br />
$12,000<br />
$9,000<br />
$6,000<br />
$3,000<br />
$0<br />
Year 1<br />
Broadcast<br />
caBLe<br />
1 Horace Dediu, “More than 60 Apps Have been Downloaded for Every iOS Device Sold,” asymco.com, January, 16,<br />
2011, http://www.asymco.com/2011/01/16/more-than-60-apps-have-been-downloaded-for-every-ios-device-sold/.<br />
2 A.K. Palit, “Internet Ad Revenue Data Shows Signs of Re-Acceleration,” www.iab.net, April 13, 2011,<br />
http://www.greencrestcapital.com/blog/internet-ad-revenue-data-shows-signs-of-re-acceleration/.<br />
Limited time tO prepare fOr unLimited pOtentiaL Of mOBiLe<br />
internet<br />
rapid shifts in consumer behavior toward mobile usage.<br />
If the pace of growth for the mobile channel is higher than<br />
it was online, it is more important to determine how to be better<br />
prepared this time to execute effectively and efficiently than<br />
to focus on an arbitrary industry juncture.<br />
Assessing comparable impact of Internet ad spend<br />
One of the most important parts of preparing for change is<br />
identifying what is different and what remains the same. Online<br />
growth is a valuable base upon which to assess the potential<br />
long-term impact of mobile. Any discussion about the real or<br />
perceived impact of mobile must address skepticism of its<br />
predecessor. Declarations in the late 90s that the Internet would<br />
rapidly disrupt traditional media channels and capture their ad spend<br />
are still considered by many marketers to have been unfounded.<br />
However, after just 16 years, Internet ad revenue was $26 billion<br />
in 2010. An apple to apples, inflation adjusted comparison shows<br />
that in their sixteenth year, broadcast and cable only generated<br />
$16 billion and $7 billion, respectively. 2 In 2010 a more significant<br />
$9,626 $9,766<br />
$8,087<br />
$8,188<br />
$8,859<br />
$5,030<br />
$6,557<br />
$7,885<br />
$7,134<br />
$6,010<br />
$7,267<br />
$4,621<br />
$2,787<br />
$3,698<br />
$2,495<br />
$3,180<br />
$3,654<br />
$358 $55<br />
$147<br />
$1,012 $267 $2,162 $907<br />
$295 $499<br />
$1,920<br />
$745<br />
$1,190 $1,580 $1,853 $2,080<br />
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14<br />
soUrces: iaB internet ad revenUe rePort, PricewaterhoUsecooPers LLP, UniversaL Mccann<br />
$12,542<br />
$10,870<br />
$4,059<br />
$16,879<br />
$11,717<br />
$4,816<br />
$21,206<br />
$13,259<br />
$23,448<br />
$6,501
milestone was reached. Internet ad revenue surpassed several<br />
traditional media segments, including newspapers, magazines<br />
and radio. It took more than 40 years for TV (broadcast and cable)<br />
to surpass newspaper advertising revenue. 3 (See chart at left.)<br />
Its growth was as responsible for Internet’s rise in advertising<br />
market share as the decline of other media channels. Ad spend<br />
on local TV, syndicated TV, newspaper, magazine, radio and<br />
directory decreased 35 percent, more than $43.8 billion, between<br />
2000 and 2010. 4 Newspaper advertising had a particularly sharp<br />
decline, decreasing 54 percent in just five years. Much of the<br />
investment in these traditional media channels has shifted to online<br />
ad expenditures as well as digital marketing initiatives that aren’t<br />
even included in ad spending figures like email marketing, digital<br />
coupons or digital promotions. When these additional segments of<br />
digital marketing are counted, online investment nearly mirrored the<br />
decline of major traditional channels, totaling $47.6 billion in 2010. 5<br />
Despite significant growth in online ad spend, traditional media<br />
will still account for an estimated 80 percent of advertising dollars<br />
in 2011. 6 Cable and network television were notable exceptions<br />
to online’s disruption of traditional media. In 2010, TV captured<br />
the largest ad spend market share — two times online’s market<br />
share. Marketers that could not effectively shift budget to digital<br />
retained traditional media channels alternatives. Consequently,<br />
even though Internet accounted for 25.2 percent of adults’ daily<br />
media consumption time in 2010, it received just 18.7 percent<br />
of U.S. ad spending. 7 However, the rate of ad spend shift<br />
to digital is growing and TV has become increasingly vulnerable<br />
to disruption. Estimated growth in 2011 for Internet advertising<br />
is 20 percent compared to 4 percent for TV. 8<br />
Where subscribers frequently access Internet<br />
on their mobile device<br />
Why mobile is different<br />
By almost every metric, mobile outperforms online advertising.<br />
Mobile will be the first truly mass media, offering unprecedented<br />
reach efficiency to marketers. Advertisers can also generate<br />
greater effectiveness from brand engagement and conversions.<br />
The increased value of mobile for advertisers should lead to higher<br />
growth rates and larger budget shifts from traditional media.<br />
Mobile subscriber penetration is now 101 percent (average<br />
person has more than one mobile phone) compared to 75<br />
percent for Internet. 9 Users are rapidly adopting smartphone<br />
and tablet devices, which support consumption behavior and<br />
ad formats required for significant ad spending. Apple’s iOS<br />
devices have become the fastest adopted consumer electronics<br />
products in history. By early 2012, there will be 54 million tablet<br />
users and 50 percent of mobile subscribers will have smartphones<br />
in the U.S. 10 By 2014, the number of mobile Internet users is<br />
3 Nieman Journalism Lab, http://www.niemanlab.org/2009/08/can-newspaper-publishers-survive-this-revenue-freefall-perhaps-if-theyembrace-a-digital-future/.<br />
4 Harold L. Vogel, Entertainment Industry Economics, Cambridge University Press.<br />
5 Jack Myers Media Business Report 2020 Vision: Media, Advertising and Marketing Economic Health Report 2000-2020.<br />
6 Nicole Perrin, “Traditional Media: Dollars and Attention Shift to Digital,” eMarketer, May 18, 2011,<br />
http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000792.<br />
7 “Ad Dollars Still Not Following Online and Mobile Usage,” eMarketer, March 31, 2011, http://totalaccess.emarketer.com/Article.aspx?R<br />
=1008311&dsNav=Ntk:basic|internet+25.2+adults%E2%80%99+daily+media+consumption+time+in+2010|1|,Rpp:50,Ro:-1.<br />
8 “Comparative Estimates,” eMarketer, http://totalaccess.emarketer.com/EssentialMetrics.aspx.<br />
9 “Comparative Estimates,” eMarketer, http://totalaccess.emarketer.com/EssentialMetrics.aspx.<br />
10 “A Portrait of Today’s Tablet User,” Online Publishers Association (OPA), June 2011, http://onlinepubs.ehclients.com/images/pdf/<br />
MMF-OPA_--_Portait_of_Todays_Tablet_User_--_Jun11_(Final-Public)3.pdf.<br />
100%<br />
75%<br />
50%<br />
25%<br />
0%<br />
89%<br />
From home<br />
66%<br />
At work<br />
66%<br />
In the car<br />
69%<br />
Outdoors<br />
71%<br />
In retail locations<br />
OUTLOOK REPORT | VOL 10<br />
93
projected to surpass desktop Internet users. 11 Recently, several<br />
carriers began offering smartphones for free with a two-year<br />
contract, eliminating any price impact on the smartphone versus<br />
feature phone purchase decision. Thus, smartphone growth<br />
will continue, making the ownership of smartphones or tablets<br />
nearly ubiquitous in the U.S.<br />
Mobile offers unique access to consumers; capable of reaching<br />
them anywhere and anytime. Subscribers frequently access<br />
Internet on their mobile device from home (89 percent), at work<br />
(66 percent), in the car (66 percent), outdoors (69 percent) and<br />
in retail locations (71 percent). Smartphone users spend 100<br />
minutes a day on mobile Web and apps, a 100 percent increase<br />
since December 2010. Tablet usage varies, but a reasonable<br />
estimate is two hours a day. Thus, mobile is rapidly approaching<br />
two and a half hours of daily Internet usage. 12 Mobile already<br />
accounts for 20 percent of marketing emails opened in 2011<br />
and is projected to generate 20 percent of searches in 2012. 13<br />
Mobile’s share of email and search should grow as smartphone<br />
and tablet adoption increases.<br />
Mobile devices also enable the addition of location targeting<br />
to demographics, content and time of day. This creates the<br />
opportunity to significantly increase contextual relevance with<br />
dynamic ads. And touch screen interactivity provides a unique<br />
and entertaining lean forward experience. Mobile outperforms<br />
online across all of the major brand engagement metrics,<br />
including ad awareness, aided awareness, unaided awareness,<br />
message association, brand favorability and purchase intent.<br />
The average click through rate on mobile ads is 8.7 times higher<br />
than online advertisements. 14<br />
94 Limited time tO prepare fOr unLimited pOtentiaL Of mOBiLe<br />
Mobile and online advertising’s effect on brand<br />
metrics in the U.S., Nov. 2007-Dec. 2010<br />
Message association<br />
4<br />
Purchase intent<br />
3<br />
Aided awareness<br />
4<br />
Brand favorability<br />
3<br />
Unaided awareness<br />
11 “Internet Trends,” Morgan Stanley, April 12, 2010.<br />
12 “Mobile Apps Put the Web in Their Rear-View Mirror,” Flurry, June 20, 2011, http://blog.flurry.com/<br />
bid/63907/Mobile-Apps-Put-the-Web-in-Their-Rear-view-Mirror.<br />
13 “Jack Myers Video Report: $54 Billion in Digital Advertising and Marketing: Where is it Coming From?”<br />
Jackmyers.com, June 15, 2011, http://www.jackmyers.com/commentary/jackmyers-think-tank/Jack-<br />
Myers-Video-Report--54-Billion-in-Digital-Advertising-and-Marketing-Where-Is-It-Coming-From.html.<br />
14 “Mobile Ads Outperform Standard Banners,” eMarketer, July 13, 2011, http://totalaccess.emarketer.com/<br />
Article.aspx?R=1008494&dsNav=Ntk:basic|mobile+ctr|1|,Rpp:50,Ro:-1.<br />
averaGe deLta* aBove controL<br />
Ad awareness<br />
3<br />
* deLta deFined as a Point diFFerence in exPosed vs. controL GroUPs<br />
soUrce: insiGhtexPress, “MoBiLe insiGhtnorMs,” Jan. 7, 2011<br />
8<br />
8<br />
8<br />
8<br />
Assessing potential of budget shift from TV<br />
Network and cable ad spend resiliency has not been based upon<br />
their superior value for marketers. Rather, cable and broadcast<br />
networks leveraged large audience inventory scarcity to generate<br />
significantly higher prices. From 1980 to 2008 the average<br />
number of households viewing TV per minute decreased 71<br />
percent while the CPM increased 692 percent, according<br />
to Nielsen. TV achieved this unique advertising paradox by<br />
reducing lower paying advertiser categories through attrition and<br />
increasing the share of revenues from higher paying advertisers.<br />
The remaining advertisers place a considerable value on being<br />
able to reach a broad national audience in a time sensitive manner.<br />
11<br />
14<br />
MoBiLe norMs<br />
onLine norMs<br />
23
The increase in price has been larger than losses from audience<br />
decline. This tradeoff cannot be sustained indefinitely. Even the<br />
least price sensitive marketers will eventually become unwilling<br />
to pay for annual TV CPM increases as the audience size of the<br />
networks and their shows decrease. The 0.8 percent annual rate<br />
of decline from 2004 to 2010 clearly shows that TV ad economics<br />
are approaching a breaking point. 15<br />
Mobile is better positioned than online to capture market share<br />
from TV. However, it is important to note that this discussion<br />
of mobile and TV ad spend is limited to the context of devices.<br />
Many of the leading networks and cable Multiple System Operators<br />
(MSOs) are well positioned to capture ad spend that has shifted<br />
to smartphones and tablets. By 2020, digital revenues are<br />
projected to generate 26 percent of total broadcast network<br />
advertising, compared to only 4.1 percent of total network ad<br />
revenues in 2010. 16<br />
Mobile consumption is increasingly aligned with TV consumption.<br />
More than 86 percent of mobile Internet users surf the mobile<br />
Web while watching TV. 17 Consumption while watching TV now<br />
accounts for 20 percent of smartphone use and 30 percent<br />
of tablet use. 18 Tablet consumption in particular aligns with<br />
traditional TV viewing behavior. Just as households often share<br />
the TV watching experience, 50 percent of iPad owners share<br />
their iPad. 19 Remarkably, 30 percent of applications on mobile<br />
phones owned by parents were downloaded by their children. 20<br />
In addition, primetime occurs during the same hours for both<br />
channels. Mobile traffic, search volume and click through rates<br />
now peak from 7p.m. to 11p.m. 21<br />
The most compelling support for mobile engagement superiority<br />
over TV comes from multitasking behavior. Admittedly, there<br />
have been just as many studies that claim that mobile has the<br />
highest engagement rate as there are studies that make the<br />
claim for TV. However, when mobile and TV are consumed at<br />
the same time, mobile appears to capture the user’s attention.<br />
An Interpublic Group (IPG) study found that 94 percent of<br />
TV viewing is distracted by multitasking with another media.<br />
Notably, smartphones were the largest distraction, accounting<br />
for 64 percent of user attention diversions from TV. It appears<br />
that a significant share of the attention decline occurs from<br />
distractions during commercial breaks. For example, Yahoo!<br />
measured 5 to 20 percent increases in traffic during ad breaks<br />
for large TV events like the Academy Awards. 22<br />
As the scale efficiencies decline on TV, advertisers will increasingly<br />
look for opportunities to reach the most consumers where<br />
engagement is highest. As users continue to integrate mobile<br />
devices into TV consumption, the engagement and thus the<br />
ad spend will shift from the TV screen to mobile devices.<br />
Priority preparations for the long-term shift to mobile<br />
reassessinG incentives. Most organizations have established,<br />
over many years of traditional media-focused marketing,<br />
15 “U.S. Advertising and Marketing Spending, by Media, 2005-2011 (billions),” eMarketer, April 14, 2009, http://totalaccess.emarketer.com/Chart.<br />
aspx?R=84272&dsNav=Ntk:basic|US+Advertising+and+Marketing+Spending%2c+by+Media%2c+2005+2011+(billions)|1|,Rpp:50,Ro:-1.<br />
16 “Jack Myers Video Report: $54 Billion in Digital Advertising and Marketing: Where is it Coming From?” Jackmyers.com, June 15, 2011, http://<br />
www.jackmyers.com/commentary/jackmyers-think-tank/Jack-Myers-Video-Report--54-Billion-in-Digital-Advertising-and-Marketing-Where-Is-It-<br />
Coming-From.html.<br />
17 “Mobile Internet — Delivering on the Promise of Mobile Advertising,” Yahoo!, March 2011, http://advertising.yahoo.com/industry-knowledge/<br />
mobile-internet-whitepaper.html.<br />
18 “In the U.S., Tablets are TV Buddies while eReaders Made Great Bedfellows,” May 19, 2011, Nielsen, http://blog.nielsen.com/nielsenwire/<br />
online_mobile/in-the-u-s-tablets-are-tv-buddies-while-ereaders-make-great-bedfellows/.<br />
19 “Tablet Opportunities for News Publishers,” INMA, January 26, 2011, http://www.inma.org/modules/store/index.cfm?action=store_<br />
detail&pubid=107.<br />
20 “U.S. Parents Say Almost a Third of the Apps on Their Phone Were Downloaded by Their Children,” Nielsen, April 27, 2011, http://blog.nielsen.<br />
com/nielsenwire/online_mobile/u-s-parents-say-almost-a-third-of-the-apps-on-their-phone-were-downloaded-their-children/.<br />
21 Kunur Patel, “When’s the Prime Time in Mobile?”, TVWeek, http://www.tvweek.com/news/2011/07/whens_prime_time_in_mobile_sam.php.<br />
22 “Mobile Internet — Delivering on the Promise of Mobile Advertising,” Yahoo!, March 2011, http://advertising.yahoo.com/industry-knowledge/<br />
mobile-internet-whitepaper.html.<br />
OUTLOOK REPORT | VOL 10<br />
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incentives for internal marketing departments and external<br />
agencies to promote behavior that maximizes performance.<br />
These incentives may not reward behavior required to execute<br />
on mobile or across an increasingly fractured landscape. Internal<br />
and agency incentives must be evaluated and changed to align<br />
with the new marketing objectives.<br />
evaLUatinG taLent. Many marketers and agencies have<br />
spent decades focusing their expertise on cost reduction.<br />
Traditional media has become commoditized and the benefit<br />
of a commodity cannot be increased. Also, the gains from<br />
a marketing campaign are harder to measure than a reduction<br />
in cost. Thus, ROI increases on these channels have come<br />
predominantly from reducing costs. However, the selections<br />
of internal team members and agencies that will be accountable<br />
for a strategic shift to mobile marketing must take into account<br />
the required skills and expertise needed to create a completely<br />
new marketing product. Individuals and organizations must<br />
be creative, entrepreneurial and capable of working in an<br />
unstructured environment. Thus, mobile teams must have<br />
expertise in increasing the benefits side of the ROI equation.<br />
reaLiGninG orGanizationaL strUctUre. Brands and agencies<br />
are often large organizations, which consist of specialized,<br />
siloed departments. This structure is intended to increase<br />
the efficiency of executing an unchanging workflow process.<br />
However, determining how to execute a new type of marketing<br />
in a dynamic environment requires more information sharing<br />
across disciplines and the flexibility to respond to unforeseen<br />
challenges and opportunities. In a rapidly changing industry,<br />
horizontal integration, rather than vertical siloes, increases<br />
efficiency and speed. An internal cross-disciplinary leadership<br />
team should be created to facilitate information sharing.<br />
However, a decision maker must be selected. Input is<br />
valuable but accountability is essential. Similarly, marketers<br />
are best served by a single agency that has a large number<br />
of experienced professionals in each discipline required to<br />
engage consumers on mobile. The value of this structure was<br />
substantiated in the early years of TV, when creative and media<br />
services were provided by the same agency.<br />
96 Limited time tO prepare fOr unLimited pOtentiaL Of mOBiLe<br />
secUrinG resoUrces. Marketers will undoubtedly face<br />
organizational resistance to the uncertainty that accompanies<br />
a transition from the familiar traditional media to a transitional<br />
state of mobile media. Convincing stakeholders of the value of<br />
a shift in budget to mobile is not sufficient to initiate action. Even<br />
if every executive agrees in principle, action is not guaranteed.<br />
Taking funds away from one part of the organization requires<br />
indisputable evidence of an increase in ROI. The best process<br />
to provide a performance-based case is through an iterative<br />
approach. Mobile executions should not be experiments. Each<br />
mobile initiative must be viewed as a potential proof point in<br />
support of mobile. The ROI calculation of the performance from<br />
the campaign or development project should be outlined before<br />
it begins. This output is an essential requirement for maintaining<br />
momentum and obtaining access to larger investment resources<br />
as mobile needs increase exponentially over time.<br />
identiFYinG UnKnowns. At this stage in the evolution of<br />
mobile, knowing what you don’t know is just as valuable as<br />
what you do know. It is important to measure and obtain as much<br />
information as possible. Not every result can be predicted by<br />
a model, and many gains will not be immediately measurable. Yet,<br />
it is important to identify what you want to know, so that you know<br />
what to look for as measurement capabilities improve, processes<br />
are established and infrastructure is created. The pipes of the<br />
mobile ad industry aren’t broken — they are in the process of being<br />
built. In many instances new ways of calculating performance<br />
must be created as intermediary solutions. For example, it may<br />
not be possible to determine the value of a lead generated from<br />
mobile. To ensure that this outcome from the marketing program<br />
is included in the ROI, the cost of generating the lead on another<br />
channel can be used instead.<br />
The speed of change in media, technology and marketing has<br />
redefined the causes of uncertainty, from doing something new,<br />
to doing nothing at all. In this dynamic environment, success<br />
will not be the product of accurate short-term and long-term<br />
market predictions. Rather, industry leadership will come from<br />
companies that made sure that they didn’t have to. As Ray<br />
Kroc, the founder of McDonald’s, prophetically said, “I don’t<br />
know what we’ll be selling in the year 2000, but whatever<br />
it is, we’ll be selling more of it than anyone else.”
Mobile and television ad spend estimates<br />
Below is a prediction of mobile and TV ad spending. We used<br />
two methodologies to calculate future mobile ad spend to<br />
ensure that we’ve made reasonable assumptions, and then<br />
calculated and compared an estimate of TV to see when mobile<br />
ad spend could surpass TV. (See chart below.)<br />
The first methodology is based on year-on-year growth rates<br />
for the next 10 years, encompassing years 7 to 18 for the mobile<br />
ad industry. From 2012 to 2014, we used Forrester’s projected<br />
average mobile ad spend growth of 50 percent per year. We<br />
used SNL Kagan’s projected mobile ad spend growth of 40<br />
percent for 2015 to 2020. For mobile advertising’s years 16<br />
to 18, encompassing 2021 to 2024, we’ve assumed 20 percent<br />
growth, online’s current and projected growth for years 16 to<br />
18. Based on Forrester’s estimate for mobile ad spend in 2011,<br />
$1.652 billion and the aforementioned growth rate assumptions<br />
for the next 12 years, mobile ad spend in 2021, 2022 and 2023<br />
would be $50.4, $60.5 and $72.5 billion, respectively.<br />
To confirm the accuracy of this mobile prediction we recalculated<br />
it with a second methodology, projecting mobile’s share of ad<br />
spend by media segment. Email marketing spend is projected<br />
to be $34.6 billion in 2020. If mobile currently accounts for 20<br />
percent of opened marketing emails, that rate should at least<br />
double when smartphone adoption increases. Mobile email<br />
spend in 20 years would be $13.84 billion, or 40 percent<br />
of the total spend. Search ad spend is projected to be $40.9<br />
billion in 2020. If mobile search is estimated to account for<br />
20 percent of searches in 2012, then a 40 percent share of ad<br />
spend can also be applied to search. Mobile search ad spend<br />
would be $16.36 billion in 2020. 23 Finally, display advertising<br />
is the last segment. Internet display is projected to be $12.33<br />
billion in 2011. 24 Since current growth trends support time<br />
spent and penetration numbers for mobile that are equal<br />
to or surpass online by 2020, mobile display ad spend should<br />
at least be equal to Internet display ad spend in 2011. The sum<br />
of these mobile ad spend segment projections for 2020<br />
is $42.53 billion, which is only 1.3 percent higher than ad<br />
spend calculated for 2020 using the first methodology.<br />
Over the next 10 years, TV ad spend should decline.<br />
ZenithOptimedia estimates mobile ad spend will be $58.9 billion in<br />
2011 and increase to $61.85 billion in 2012. The 4 percent growth<br />
in 2012 will be attributed to the Olympics and the presidential<br />
election. However, we believe TV will decline 3.5 percent annually<br />
from 2013 to 2023, the same average rate of decline of local TV,<br />
syndication TV, newspaper, magazine, radio and directory from<br />
2000 to 2010. 25 Based on ZenithOptimedia’s estimate for 2012<br />
TV ad spend and the aforementioned rate of decline assumption<br />
for the following 11 years, TV ad spend in 2021, 2022 and 2023<br />
would be $44.88, $43.31 and $41.79 billion, respectively.<br />
Based on the above assumptions and projections, mobile ad<br />
spend will surpass TV ad spend in 10 years. Even if TV retained<br />
its 0.5 percent average ad spend growth rate from 2000 to 2010,<br />
ad spend in 2021, 2022 and 2023 would be $64.68, $65.01 and<br />
$65.33 billion, respectively. 26 This scenario has mobile ad spend<br />
surpassing TV ad spend in 12 years, only a two-year delay.<br />
23 “The Social Commerce Economy,” Jack Myers Media Business Report, August 23, 2011, http://jackmyers.v.reutersinsider.com/.<br />
24 David Hallerman, “U.S. Online Ad Spending: The Floodgates Are Open,” eMarketer, June 29, 2011, http://totalaccess.emarketer.com/Reports/<br />
Viewer.aspx?R=2000787.<br />
25 Harold L. Vogel, Entertainment Industry Economics, Cambridge University Press.<br />
26 “U.S. Advertising and Marketing Spending, by Media, 2005-2011 (billions),” eMarketer, April 14, 2009, http://totalaccess.emarketer.com/Chart.<br />
aspx?R=84272&dsNav=Ntk:basic|US+Advertising+and+Marketing+Spending%2c+by+Media%2c+2005+2011+(billions)|1|,Rpp:50,Ro:-1.<br />
2011<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
2017<br />
2018<br />
2019<br />
2020<br />
2021<br />
2022<br />
2023<br />
aGGressive conservative aGGressive conservative<br />
Year sPend Growth sPend Growth sPend Growth sPend Growth<br />
$1.65 125% $1.65 125% $58.90 4.0% $58.90 4.0%<br />
$2.48 50% $2.31 40% $61.85 5.0% $61.85 5.0%<br />
$3.72 50% $3.24 40% $62.15 0.5% $59.68 -3.5%<br />
$5.58 50% $4.53 40% $62.46 0.5% $57.59 -3.5%<br />
$7.81 40% $6.35 40% $62.78 0.5% $55.58 -3.5%<br />
$10.93 40% $8.88 40% $63.09 0.5% $53.63 -3.5%<br />
$15.30 40% $12.44 40% $63.41 0.5% $51.75 -3.5%<br />
$21.42 40% $17.41 40% $63.72 0.5% $49.94 -3.5%<br />
$29.99 40% $24.38 40% $64.04 0.5% $48.19 -3.5%<br />
$41.98 40% $34.13 40% $64.36 0.5% $46.51 -3.5%<br />
$50.38 20% $47.78 40% $64.68 0.5% $44.88 -3.5%<br />
$60.45 20% $57.34 20% $65.01 0.5% $43.31 -3.5%<br />
$72.54 20% $68.81 20% $65.33 0.5% $41.79 -3.5%<br />
*sPend in BiLLions<br />
Mobile Television<br />
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and Platforms<br />
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Group VP, Technology<br />
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How the Open API<br />
Movement Can Help<br />
Your Brand<br />
In an analysis of innovative companies, Razorfish has found that<br />
it’s not just the organizational culture or leadership that creates<br />
innovation; it’s the willingness to allow consumers and developers<br />
to identify new uses for existing data and infrastructure via open<br />
digital services. Whether the goal is adding new revenue streams<br />
or extending global reach, embracing an open digital service<br />
model is an imperative step.<br />
When executives are challenged to innovate, they often try to take old routes to<br />
new business ideas. While analyzing innovative companies, we’ve found that it’s<br />
not just the organizational culture or leadership that creates innovation — it’s the<br />
willingness to allow consumers and developers to identify new uses for existing<br />
data and infrastructure via open APIs. Innovation leaders like Google, eBay and<br />
Twitter process billions of digital service calls every day, adding real business<br />
value to more categories and brands than once thought possible. Whether your<br />
goal is adding new revenue streams or extending global reach, embracing open<br />
APIs is a step you must consider to help ensure success.<br />
Scan the QR code on the left to view the video “What is Open? A simple description<br />
of APIs.”<br />
For brands steeped in technology — like Best Buy, Netflix, eBay or Amazon —<br />
this is easy. In the last few years, open API adoption has grown many times over.<br />
According to Programmableweb.com, in 2010, more than 2,800 brands offered<br />
data or service over open API. That means 25 times more brands are taking<br />
advantage of the open API movement than five years ago. But let’s not be fooled<br />
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There’s a major opportunity<br />
for more traditionally minded brands<br />
to take advantage of open-source<br />
software development.<br />
by this growth. Razorfish’s analysis shows that this growth<br />
comes mainly from Internet/social brands, and not from those<br />
that are considered traditional. Others may be scratching their<br />
heads as they think about how open APIs and community<br />
participation can help their traditional businesses.<br />
We are living in a fast-changing environment with steady<br />
proliferation of applications, platforms and devices. Data<br />
is growing, as are the number of transactions, and cloud<br />
computing is making things easier and faster. On top of these<br />
shifts, user expectations and behaviors are changing, too. This<br />
calls for rapid and continuous innovation to maintain competitive<br />
advantage. Keeping up with change is necessary, but shifting<br />
the focus of your workforce can be a major distraction. Opening<br />
data and/or services to the larger community provides greater<br />
access to community brainpower, thus, more opportunities.<br />
There’s a major opportunity for more traditionally minded brands<br />
to take advantage of exposing their data and/or services through<br />
open API. For evidence, look no further than a company<br />
engaged in one of the most traditional of business activities:<br />
gold mining.<br />
hOW the Open api mOVement can heLp YOur Brand<br />
Thar’s gold in them thar hills<br />
In early 2000, businesses were breathing a sigh of relief after<br />
the non-event that was Y2K, and the Internet bubble was still<br />
at its peak. On March 10, 2000, NASDAQ reached a record high<br />
of 5132.52. Stock investments were lucrative and the gold market<br />
was depressed. In that economic environment, gold producer<br />
Goldcorp Inc. was not only suffering from market trends, but also<br />
from internal organizational issues. CEO Rob McEwen knew<br />
his mines had great potential, but lacked resources to identify<br />
where to mine in the vast, 55,000-acre Red Lake area in<br />
Northwestern Ontario. Having learned about technological<br />
advances during a seminar at MIT, he was fascinated by the<br />
open-source code movement and the success of Linux operating<br />
system, which programmers across the globe had built for free.<br />
This concept of community involvement caught McEwen’s<br />
attention, after which he knew exactly what he needed to do.<br />
At an industry meeting in March 2000, McEwen unveiled the<br />
“Goldcorp Challenge,” an open invitation to experts around<br />
the world to participate in a competition to help Goldcorp<br />
identify where to mine. About 400MB of Goldcorp’s confidential,<br />
proprietary geological data was made available to more than
1,400 scientists, engineers and geologists from 50 countries<br />
around the world who downloaded the data and started virtual<br />
exploration. Within days Goldcorp started to receive entries.<br />
The winner was a collaboration of two groups in Australia —<br />
The firm formerly known as Fractal Graphics, and Taylor Wall<br />
& Associates, which together suggested five specific locations<br />
to mine and developed a powerful 3D, graphical depiction. Each<br />
one of the locations yielded gold, and the Goldcorp Challenge<br />
changed the company’s fortune. In exchange for a small award<br />
to the winners, Goldcorp found metal worth more than $6 billion.<br />
Since then Goldcorp has seen its share price increase from the<br />
single digits to more than $50, and it has become the secondlargest<br />
gold mining company by market capitalization. With<br />
mines in Canada, the U.S. and Mexico, and a pipeline that<br />
includes other spots in Latin America, it’s widely considered<br />
an industry leader. How did it get there? By opening itself up<br />
to a community that could help it improve. The lesson here is<br />
simple — You don’t need to be an e-tailer or a country whose DNA<br />
was twirled together in Silicon Valley in order to take advantage<br />
of the wisdom of the crowds. When you recognize the value in<br />
that wisdom and find a way to leverage it, the benefits are clear.<br />
Open API benefits<br />
new revenUe streaM. Using open APIs can create a new sales<br />
channel. For instance, Best Buy’s platform, BBYOpen, allows<br />
a worldwide community to freely access product information,<br />
store details and reviews via a set of RESTful APIs. This enables<br />
developers to create apps that facilitate purchases from Best<br />
Buy. The BBYOpen initiative started as a small IT venture —<br />
today it is one of the primary sales channels for the company.<br />
cost savinGs. New device proliferation demands different<br />
digital experiences around products across different interfaces.<br />
However, creating unique experiences for each interface can<br />
prove costly even for big brands. Open API allows developers<br />
to create those experiences free of charge. Twitter, for example,<br />
didn’t launch its first official application for iPhone until 2010,<br />
but a multitude of Twitter apps for the device have been<br />
available in the App Store since the launch of iPhone in 2007.<br />
The developer community filled the gap.<br />
Brand eqUitY. Utilizing open APIs can engage brand evangelists<br />
in a meaningful way, creating stronger community and as<br />
a result increases equity. Once the community is engaged,<br />
the cycle of innovation grows exponentially. Facebook’s total<br />
user base increased four times in less than a year after May 24,<br />
2007 — when the company announced the open platform for<br />
the developer community to build social applications.<br />
Brand GoaLs. Finally, open API allows staff and talent to focus<br />
on brand goals because staff is less distracted by continuous<br />
noise in the technology landscape. Additionally, feedback from<br />
the community helps facilitate better product roadmap planning.<br />
How to do it<br />
Despite hard facts and evidence, traditional brands are wary<br />
of sharing proprietary data. There’s often an organizational<br />
inertia that slows the pace of change but, while change is<br />
hard, it is the only constant. There has been some progress,<br />
especially in the healthcare and financial services industries —<br />
which traditionally resist such ideas — but the progress is minor<br />
at best. A model of crawl-walk-run can help:<br />
• Start small. Open up one data set or service.<br />
• Engage with the community and give people the freedom<br />
to express their needs and wants.<br />
• Seek feedback and track progress. Community feedback and<br />
the experience that community creates can help make a case<br />
that can help move the organization in the right direction.<br />
Open API initiatives will not make you glamorous overnight.<br />
It is a slow process of energizing brand evangelists. In the next<br />
few years, it will be de-facto to have a http://developer..com entity. Smart brands will get there faster and<br />
laggard brands will follow. It is up to you to decide where your<br />
brand falls.<br />
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Organizing<br />
for Digital Success<br />
Deep down, even digital agencies know that it takes more than<br />
a few flashy new experiences to build real, long-term competitive<br />
advantage through digital. It’s not enough to deploy a suite of new<br />
platforms and programs; to reap the benefits, you’ve got to be<br />
able to manage and evolve those assets over time. This requires<br />
a set of new capabilities — and those capabilities don’t come from<br />
technology alone, but from the right combination of technology<br />
and human expertise, properly deployed and managed. We’ve<br />
outlined five common pitfalls to avoid on the way to digital leadership.<br />
We digital agencies should do more to help clients build these new capabilities.<br />
Our visibility into many types of organizations gives us real-time insight into<br />
what’s working and, more often, what’s not. For this reason, savvy clients<br />
are increasingly seeking our advice as they consider how best to organize<br />
and manage the digital function. Most are hoping for a set of clear-cut best<br />
practices. But for such a young and rapidly evolving business discipline,<br />
obvious answers are few and far between. Defining a “correct” structure for digital<br />
requires a tailored solution that accounts for each organization’s unique structure,<br />
culture and existing practices. To date we’ve collected far more cautionary<br />
tales than genuine best practices, but looking across multiple industries and<br />
organization types, a few general patterns start to emerge. Specifically, in<br />
debating how best to structure for digital, we’ve seen many organizations get<br />
stuck on solving one or more intractable problems that are actually less relevant<br />
to long-term progress than they initially seem.<br />
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Here are five common pitfalls to avoid on the way to digital<br />
leadership:<br />
1. oBsessinG aBoUt ownershiP<br />
Many organizations fret about which senior executive should<br />
“own” digital. Usually this comes down to the CMO or CIO.<br />
And while this is indeed an important, sensitive decision, we’ve<br />
seen that it can work both ways. The CMO versus CIO debate<br />
is a bit of a red herring, and if it goes on too long, becomes<br />
a dangerous distraction from the real work at hand. For most<br />
organizations, digital’s organizational home is ultimately less<br />
important than the strength, capability and cohesion of the<br />
digital team itself — regardless of where it resides.<br />
Furthermore, in either scenario we believe digital should be more<br />
different from its parent organization than it is alike. In general,<br />
IT organizations value stability and security, while marketing<br />
emphasizes speed, creativity and customer-centricity. The ideal<br />
digital organization combines the technical capability of IT<br />
with the customer sensitivity and agility of marketing — without<br />
getting bogged down by the legacy mind-sets, processes<br />
or politics of either function.<br />
OrGanizinG fOr diGitaL success<br />
Digital is best understood<br />
not as a subset of<br />
marketing or IT, but as<br />
a new, separate animal.<br />
At the end of the day, digital is best understood not as a subset<br />
of marketing or IT, but as a new, separate animal. With strong<br />
team leadership and an effective executive sponsor, digital<br />
can, in theory, thrive under either umbrella — depending on<br />
the specifics of the organization, of course.<br />
2. PoLishinG the PLan<br />
As with the CMO versus CIO debate, most organizations spend<br />
an inordinate amount of time defining and refining their digital<br />
roadmaps. We love these roadmaps and consider them an<br />
invaluable tool for communicating long-term plans and aligning<br />
effort. However, we also know that technology moves quickly,<br />
and that today’s brilliant three-year roadmap may start to look<br />
pretty silly around month 17. Yes, it’s essential to have a plan<br />
to work and measure against. But it’s equally important to be<br />
able to track the market, react quickly and adapt as necessary.<br />
Over the long haul, the ability to support rapid deployment,<br />
testing and optimization of new experiences is far more important<br />
than perfect planning — and a far more important determinant<br />
of long-term digital success.
3. chasinG the shinY oBJect<br />
It’s unavoidable that as digital technology becomes more and<br />
more complicated, digital organizations become more specialized<br />
and functionally fragmented. The advent of significant new<br />
technologies often requires new organizational capabilities,<br />
and additional people to handle specialized tasks. Think about<br />
how social media has made social listening and influencer<br />
outreach must-haves. However, there’s a limit to the amount<br />
of subspecialization any team can afford to take on. More<br />
people means more management overhead — recruiting takes<br />
time, integration can be complex and specialists are always<br />
in short supply.<br />
Instead of building sub-teams around every hot digital technology,<br />
smart leaders identify emerging capabilities that will be important<br />
in the long term, and find ways to bake these abilities into the<br />
broader team’s DNA. Sometimes, this may require adding new<br />
people; in other cases, new kinds of cross-training or smart<br />
partnering may be more appropriate. Bottom line — If you build<br />
your organization around long-term capability requirements<br />
rather than current trendy topics, you’ll be better positioned<br />
for long-term success (and won’t have to reorganize every time<br />
a hot new technology emerges).<br />
4. steerinG BY coMMittee<br />
A surprising number of organizations still try to coordinate<br />
digital activity via cross-functional steering committees that<br />
only meet periodically. These are good forums for keeping<br />
multiple functions informed of digital trends and initiatives —<br />
and to solicit their input on relevant tactics, such as compliance<br />
policies. However, they’re not an efficient vehicle for establishing<br />
strategy or managing day-to-day operations. Think of them<br />
as the “C” and the “I” in a Responsible, Accountable, Consulted,<br />
Informed (RACI) chart — not the “A.” Digital teams need to<br />
move much more quickly and decisively than cross-functional<br />
committees usually can. So while it may be politically difficult<br />
to consolidate digital leadership under a single team leader<br />
or executive sponsor, the operational benefit is usually worth<br />
the pain.<br />
5. waLLowinG in LeGacY IT environMents<br />
Here’s an all-too-common scenario: The digital or marketing team<br />
wants to deploy a new platform or program, but can’t do so<br />
without changing or potentially destabilizing existing enterprise<br />
architecture. IT wants to help, but the needed changes are part<br />
of a bigger enterprise IT roadmap with multiple dependencies<br />
and competing priorities. The requested digital changes may<br />
happen this year… or they may not, depending on how budgets<br />
and other projects shake out. So the digital team gets stuck<br />
in an unwinnable tug of war with other enterprise priorities.<br />
If this sounds familiar, the good news is you’re not alone.<br />
The bad news is, the only real way out of this trap is a<br />
fundamental replatforming that separates digital experience<br />
technologies from other enterprise IT systems as much as<br />
possible. For the most part, enterprise IT roadmaps are simply<br />
not fast enough or predictable enough to support customercentric<br />
digital programs.<br />
The key takeaway here is that technology architecture affects<br />
organizational effectiveness. Fortunately, there are ways<br />
to divorce the Web presentation layer from other IT systems,<br />
and to develop an applications layer and APIs that allow the<br />
digital team to quickly deploy changes and experience upgrades<br />
without causing harm to underlying enterprise systems with<br />
which they have to integrate. Creating this separation within<br />
the technology stack can be a difficult, painful process, but<br />
worth the investment. And without this kind of architecture<br />
running in the background, your digital team will be working<br />
at a competitive disadvantage right from the start.<br />
So what does work?<br />
Every organization is different, and the “right” answer for your<br />
business will depend much more on specific personalities and<br />
individual skill sets than on any theory of organization. All that<br />
said, we find most organizations need to do at least some<br />
of the following:<br />
• Implement some greater degree of centralization for<br />
digital across the enterprise to better coordinate strategy<br />
and realize platform efficiencies.<br />
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Long-term, the ability to support<br />
rapid deployment, testing and optimization<br />
of new experiences is far more<br />
important than perfect planning.<br />
• Improve connections between digital and the broader organization<br />
through effective cross-functional governance structures and<br />
enlightened executive sponsorship.<br />
• Build a more balanced, integrated skill set within the digital<br />
team, encompassing both creative (marketing, user experience,<br />
design, content) and technical (presentation layer development,<br />
analytics) expertise.<br />
• Find a strong, versatile, articulate leader to head up the<br />
digital organization.<br />
• Allow C-level reporting (or at least visibility) for the digital<br />
team’s leader, in order to fully realize the transformative<br />
potential of digital as a growth driver for the total business.<br />
OrGanizinG fOr diGitaL success<br />
In defining solutions for specific clients looking to maximize<br />
digital success, we analyze existing organizations across<br />
multiple dimensions, including leadership, structure, strategy,<br />
funding, roles and skills, processes, incentives and more.<br />
Our experience across multiple industries and companies<br />
allows us to offer an impartial, comparative perspective that<br />
often helps clarify and resolve long-running internal debates.<br />
However, at the end of the day, we usually find that defining<br />
an organizational plan for digital is actually the easy part.<br />
Implementing that plan successfully within an existing structure,<br />
culture, and business environment can often feel like the most<br />
challenging digital deployment of all. But for organizations truly<br />
looking to leverage digital for long-term competitive advantage,<br />
the rewards are worth it.
Managing Digital at Delta<br />
Q&A with Bob Kupbens, VP, eCommerce at Delta Airlines<br />
rF: Tell us a bit about your digital team. What is its charter,<br />
and where does it “live” within the broader organization?<br />
BK: Our digital team is a key part of our larger commercial<br />
organization and is responsible for: 1) generating customer<br />
sales revenue, 2) driving “effortless” customer service, and<br />
3) improving the airport travel experience overall. Working<br />
across multiple areas of Delta, our team is dedicated to<br />
providing our customers with digital options for getting “out<br />
of line and off the phone” and headed to their destination.<br />
rF: What’s working well within your current team, what have<br />
been some of the keys to success?<br />
BK: We have moved from a mind-set of having channel-focused<br />
technology project managers to one of cross-channel product<br />
owners over the years. This shift allows us to better view<br />
travel from a customer’s point of view and we look<br />
at competitors, other industries and changing customer<br />
expectations while also focused on driving consistency<br />
across channels.<br />
rF: How does your company do strategic planning for digital?<br />
Who’s involved and what issues are typically considered?<br />
BK: We are fortunate to have many sources of customer feedback,<br />
from daily verbatims to internal and external studies to our<br />
closed community of Delta digital advisors. We use all this<br />
feedback as the starting point for where to focus our strategic<br />
planning, and then leverage our broader corporate goals<br />
to determine how digital can best help Delta meet them.<br />
We recently held a strategic planning session, which included<br />
representatives from ecommerce, airport customer service,<br />
product development and reservations to discuss where<br />
we’re headed in digital — a truly cross-functional effort.<br />
rF: How do you keep digital initiatives aligned with activities<br />
in more traditional/non-digital businesses and channels?<br />
BK: In our business, it is essential that customers are provided<br />
the same functionality across digital and non-digital channels<br />
to avoid confusion. So we’ve designed our architecture to<br />
support all channels. Our customers get the same information<br />
and service for activities like checking in for a flight,<br />
regardless of whether they choose to see an agent at the<br />
counter, use a self-service kiosk at the airport, visit delta.com<br />
or use one of our mobile applications.<br />
rF: How does your team collaborate with related functions<br />
(including marketing and IT) in your organization?<br />
BK: We have a number of business metrics that drive our<br />
shared success and promote taking ownership both within<br />
and across divisions. Our airport operations, marketing,<br />
IT and ecommerce teams all have a commonly shared goal<br />
of getting our customers through the experience quickly<br />
and easily and we all share in our collective successes.<br />
Also, Delta has a very lean organization, so collaboration<br />
across functions is relatively easy.<br />
rF: How do you see your team evolving over the next one<br />
to two years?<br />
BK: As consumer technology and customer expectations continue<br />
to evolve, we will have to add expertise in developing areas<br />
to ensure we remain fresh. Currently, we’re focused<br />
on tablet and mobile, near field communications and<br />
merchandising. In addition, we’re always looking to add<br />
talented individuals from other industries to make sure<br />
we aren’t overly airline-centric.<br />
OUTLOOK REPORT | VOL 10<br />
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108<br />
Authors and<br />
Contributors<br />
authOrs and cOntriButOrs<br />
Adam Heimlich<br />
VP, Search and Performance Marketing<br />
@ADAMhEIMLICh<br />
LINKEDIN.COM/IN/ADAMhEIMLICh<br />
I love to make the line on the chart go up and to the right. It’s<br />
fun, it’s rewarding and sometimes the power that comes from<br />
being able to do it for clients brings a chance to make the world<br />
just a little bit more awesome.<br />
As vice president of search and performance marketing in New<br />
York, I’m fortunate to lead part of the world’s greatest marketing<br />
team (if you measure by results): Razorfish Search. Check us out<br />
at razorfishsearch.com.<br />
I joined the agency in 2006 to help tackle the challenge of<br />
servicing Capital One. Previously I’d learned digital marketing<br />
at smaller agencies and a startup. Before that I spent a decade<br />
in print, mostly newspapers. At Razorfish, I’ve been a member<br />
of the Victoria’s Secret, Ralph Lauren, T. Rowe Price, Schering-<br />
Plough, Forest Laboratories, Starwood and ADT teams. I enjoy<br />
the beginning of campaigns, when we’re establishing relationships<br />
and identifying problems, as well as the mature stages, after<br />
the easy problems are solved and we rely on the strength of<br />
relationships to help brands adapt and not just adjust to the<br />
digital realm. (Like they said in the commercial — You’re soaking<br />
in it.)<br />
In Razorfish’s New York office, I’m active in trying to cultivate<br />
a learning environment, not only because it makes our people<br />
better, but also because it seems to be the best way to market<br />
nowadays. The most popular of the courses I designed is<br />
“Search & Sips,” a consulting/wine appreciation course based<br />
on McLuhan’s theory of “Total Involvement” and my personal<br />
belief in wine as media. It’s very nearly as pretentious as it sounds.<br />
When I’m not obsessively optimizing, I enjoy bicycling, traveling,<br />
cooking and otherwise partaking in the futuristic, global village<br />
lifestyle of Planet Brooklyn — it’s the next media capital, mark<br />
my words.
Basel Salloum<br />
Group VP, Technology<br />
LINKEDIN.COM/IN/SALLOUM<br />
When I first arrived in America 24 years ago, one of my primary<br />
goals was to become a “computer expert,” so I followed the<br />
logical path of academia and set out to receive a BS in computer<br />
science from Northeastern University. My “professional career”<br />
began during my first year of college, when I held various senior<br />
positions in the fast food industry that ranged from baking<br />
bread to restocking bars. However, during my second year<br />
as an undergraduate, I landed a job as an associate software<br />
engineer, coding kernel-level programs using my least favorite<br />
programming language: assembly. This changed everything.<br />
Soon after, I worked as a software engineer at Sybase, and then<br />
made the leap from the product side to the service side by joining<br />
Cambridge Technology Partners as a technology architect. There,<br />
I designed and built a number of transactional client server- and<br />
web-based systems before joining Scient as a senior technology<br />
architect, helping companies join the digital movement.<br />
The path from Scient to Razorfish can be traced to mergers<br />
and acquisitions where I played various roles from technology<br />
director to discipline lead to vice president of technology to<br />
my present role.<br />
As for my hobbies (and what’s a bio without hobbies?), I hit<br />
the mountain biking trails whenever I can. I also enjoy honing<br />
my driving (and sometimes racing) skills on the weekend while<br />
transporting my kids to their many activities on time (something<br />
that requires a great deal of precise event planning and time<br />
coordination — and often negotiation).<br />
Bethany Fenton<br />
VP, Experience<br />
LINKEDIN.COM/IN/bEthANYfENtON<br />
I started frustrating my parents and teachers with “why” and<br />
“how” questions about everything at a very early age. And the<br />
answers were frequently followed with more “why’s.” I may<br />
have discovered the “five why’s” by the age of 10. It wasn’t<br />
insolence — it was curiosity. I loved understanding why and<br />
how things work.<br />
That curiosity combined with my experience working for one<br />
of the first interactive agencies in the world, Fry Inc., led me to<br />
an emerging discipline now known as user experience. While at<br />
Fry, I worked with premier retailers to establish some of the first<br />
ecommerce sites including Spiegel and Crate and Barrel.<br />
When I joined Razorfish, I had a mentor who exposed me to<br />
“user research.” We went into peoples’ homes to observe how<br />
they put outfits together. While that seems like a menial task,<br />
the struggles, behaviors and emotional investment that went<br />
along with every outfit decision was striking and game-changing.<br />
Physical or digital, people’s needs were not being met.<br />
So a fork-in-the-road moment for me was the realization that<br />
you can be in the business of best practices, live by analyst<br />
evaluations and one-up the competition, or you can make things<br />
better — in a way that’s meaningful for businesses and people.<br />
They’re not mutually exclusive.<br />
As vice president of experience for Razorfish, I work with clients<br />
and teams to find meaningful solutions for businesses and people.<br />
It’s exciting, frustrating and heartbreaking — but at the end of<br />
the day, it’s rewarding.<br />
Having been in the industry for 16 years, I’ve also realized the<br />
importance of down time. It’s all relative though — my vacation<br />
primarily consists of bi-annual fitness adventures in places like<br />
Brazil and/or Costa Rica where I get to challenge my fear of<br />
heights on a daily basis. Oddly relaxing in context.<br />
OUTLOOK REPORT | VOL 10<br />
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110<br />
Bob Lord<br />
Global CEO<br />
@RWLORD<br />
LINKEDIN.COM/IN/MbAhbS1990<br />
As an engineer out of college, I was very much intrigued by the<br />
promise that marketing holds. I decided to go back to school to<br />
study business, specifically marketing. After getting my MBA, I<br />
joined the consulting business. Little did I know that marketing<br />
and technology would eventually collide.<br />
After stints in leading positions at consulting firms, I landed at<br />
Razorfish in 1999 as chief operating officer. Back then, technology<br />
wasn’t advanced enough to deliver on brand promises and the<br />
bubble burst. But the past decade has truly seen the convergence<br />
of marketing and technology and in hindsight my early career<br />
experiences primed me for this shift.<br />
My job has evolved over the years; from chief operating officer,<br />
I became president of our east region for six years, before<br />
becoming global CEO in 2009. The best part of my job is working<br />
with clients and our teams. I love selling new work, challenging<br />
ideas and driving innovation within the organization. Making<br />
a difference to our clients and their bottom lines, and helping<br />
them communicate with consumers like never before — that’s<br />
where I get my energy.<br />
In addition to leading Razorfish globally, I’m a member of Publicis<br />
Groupe’s Strategic Leadership Team, and have a seat on the<br />
board of directors for Publicis Groupe’s VivaKi unit. I also sit on<br />
the board of directors for the Advertising Research Foundation<br />
and I’m an active member of the TED community. Whenever<br />
I can, I also enjoy biking, surfing and spending time with my<br />
family. I hold an MBA from Harvard Business School and a BS<br />
in engineering from Syracuse University.<br />
authOrs and cOntriButOrs<br />
Brandon Geary<br />
SVP, Strategy<br />
@bRANDgEAR<br />
As the leader of strategy for the Americas at Razorfish, I’m<br />
tasked with combining the insight of user experience, strategy<br />
and account planning to deliver strategic recommendations for<br />
a variety of Fortune 100 companies, while helping shape the<br />
future of the Razorfish business. It just sounds like a big job.<br />
I love working with Nike, Best Buy, Levi’s, MillerCoors, Microsoft,<br />
HP and Nintendo. I’ve helped them pull their digital strategy<br />
together and have guided them to early uses of social media,<br />
behavioral targeting and mobile.<br />
Prior to joining Razorfish I was senior vice president of strategic<br />
planning at a division of McCann Worldgroup, where we won<br />
Effies in 2003 and 2004 for Washington Mutual’s New York launch<br />
and home loan campaigns. Prior to McCann, I was marketing<br />
director at Fatbrain.com, an online seller of technology books<br />
and training, which was acquired by Barnes & Noble. I also<br />
held senior account management positions at McCann A&L<br />
and GMO in San Francisco. Despite my digital orientation,<br />
I do indeed read printed matter, and often use my phone for<br />
calling my kids.
Chris Bowler<br />
VP, Social Media<br />
@bUCKEtQUIz<br />
bUCKEtQUIz.COM/A_hUNDRED_thINgS<br />
I believe social media doesn’t have to be complicated. It’s really<br />
just about being you — And that goes for brands and businesses,<br />
too. The key is to offer something of value that others will respond<br />
to and share.<br />
I started my own version of social media a dozen years ago,<br />
with a Web site that inspires others to create their own bucket<br />
lists — the milestones and activities one wants to complete<br />
before they die. On the passion scale, this goes straight to the<br />
top. Today, check out my blog and daily tweets.<br />
I bring this same fervor to my everyday work and believe that<br />
each client has something valuable to share that can also make<br />
a difference. Whether simply to provide some fun, offer a “deal”<br />
or provide a valued service, the key is to find the elements that<br />
make a true connection.<br />
At Razorfish, I lead our clients forward in ever-evolving social<br />
media channels — 85 percent of the time, this is acting as<br />
a cheerleader/evangelist/therapist/trailblazer to drive idea<br />
development and test-and-learn programs. This all started wayback-when<br />
with online services like AOL and Prodigy, whose<br />
first online ad campaigns I launched, and later, on the burgeoning<br />
Internet, where I introduced the first new product launch for<br />
a major appliance company. (What can I say? I like being first.)<br />
My background is in media. I started in offline advertising with<br />
Campbell Mithun in Minneapolis, before jumping into the digital<br />
pool at Agency.com, where I led the digital media and search<br />
engine marketing practice. And occasionally, I’ve talked about<br />
my circuitous experience at industry conferences such as<br />
SXSW, ad:tech and WOMMA.<br />
When I’m not working, I run. Nine marathons — so far. But running<br />
a marathon is just one of those bucket list items many of us<br />
have on our list of things to do before we die. I’ll ask you if<br />
I get a chance: What’s on yours?<br />
Frederic Bonn<br />
Executive Creative Director<br />
@fREDERICbONN<br />
LINKEDIN.COM/IN/fREDERICbONN<br />
I started my career at Publication Design, a firm that redesigns<br />
publications in France and the U.K. During that time I was<br />
immersed in the firm’s efforts to guide readers through content,<br />
grab their attention through copy and images, establish clear<br />
hierarchy and provide a flow through the experience — so moving<br />
to digital in 1997 was a logical transition. With a number of<br />
colleagues and in partnership with Roger Black I opened the<br />
Interactive Bureau office in Paris.<br />
Since then, I’ve been traversing the Atlantic, working in New York,<br />
London, Paris then New York again. I moved from Euro RSCG to<br />
Ogilvy to Razorfish, and have led a wide variety of projects ranging<br />
from global digital platforms to innovative digital campaigns for<br />
the likes of IBM and Volvo. Diverse experiences driven by great<br />
creative ideas, from advertising to Web site design, from mobile<br />
apps to branded content, from out-of-home to social media,<br />
have helped me think about communication as an integrated<br />
brand experience for users to engage with through entertainment,<br />
services and conversations.<br />
My work has been recognized at the most prestigious creative<br />
award shows (including Cannes Lions, Webby, Eurobest, Epica,<br />
LIA and FWA) and I’ve been a speaker and juror at various<br />
industry events.<br />
I live in Brooklyn with my wife and two sons, and keep<br />
a photographic report with other photographers<br />
(crossatlanticreport.posterous.com).<br />
OUTLOOK REPORT | VOL 10<br />
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112<br />
Jeremy Lockhorn<br />
VP, Emerging Media<br />
@NEWMEDIAgEEK<br />
Between my title and my Twitter handle (@newmediageek),<br />
it’s pretty easy to guess what I do. It’s a bit of a dream job<br />
sometimes — I monitor trends, meet with fascinating media<br />
technology developers, and help our teams and our clients<br />
see, plan for and adapt to the future of media. And yet, as<br />
I heard a young entrepreneur once say, “Innovation is not a clean<br />
sport.” Truer words were never spoken. Media innovation can<br />
be messy, ugly, and laced with equal parts risk and uncertainty.<br />
But it’s also incredibly rewarding, both for me personally, and<br />
for clients that get it right and see the massive returns.<br />
I’ve been at Razorfish for most of my career, having joined an<br />
agency startup called i-FRONTIER in 1997. Working out of a<br />
spare bedroom in founder Brad Aronson’s condo was a unique<br />
experience — as was the opportunity to get involved in nearly<br />
every side of the agency business as we grew from the two of<br />
us to over 100 people before we were acquired by Avenue A and<br />
ultimately became Razorfish.<br />
Making the move from Philadelphia to Seattle has been yet another<br />
adventure, and I’ve since embraced the outdoor nature of the<br />
“Pac NW.” When I’m not at work, you might find me hiking,<br />
skiing or camping. In fact, I sort of aspire to retire as a ski bum.<br />
Music is my other passion, and I just hope that all these years<br />
of pounding on the laptop keyboard doesn’t give my guitar<br />
fingers too much trouble.<br />
authOrs and cOntriButOrs<br />
I like the word “ass.”<br />
Jonathan Hull<br />
VP, Emerging Experiences<br />
@hULLjON<br />
EMERgINgExpERIENCES.COM<br />
I try to work it into every conversation I have. “That’s bad-ass,”<br />
“That was a cool-ass experience,” or one of my favorites,<br />
“Oh, that tastes like ass.”<br />
My first couple of jobs after getting my undergraduate degree<br />
were in big-ass IT consulting — Oracle and IBM Global Services.<br />
I love technology and was riding the crazy-ass IT train of the 90s<br />
but something was lacking — the human element. The question<br />
then changed from, “What can people do with computers?”<br />
to, “What can computers do for people?”<br />
So I took a break from databases, app servers and integration<br />
architectures to get my MBA. Upon graduation I switched my<br />
focus to interactive marketing and joined Razorfish to ride the<br />
.com wave.<br />
Having survived the dumb-asses responsible for the .bomb era<br />
I moved past the browser a few years back and refocused on<br />
immersive digital experiences. Why? Because the nature of the<br />
Web is device agnostic; a primary value proposition is to serve<br />
up exactly the same experience across any device. The problem<br />
was I like the technical gadgetry and gizmo-ness of devices<br />
almost as much as saying the word “ass.”<br />
As vice president of emerging experiences (EE) at Razorfish<br />
I lead one of the most innovative teams within any agency.<br />
We’re a cross-functional team of strategists, designers and<br />
technologists. The EE team is constantly looking at new<br />
technologies, devices and digital design paradigms. But<br />
while we love research and development, we also keep it real.<br />
The biggest impact we’re making is helping our clients get<br />
immersive digital experiences into the market. We get to<br />
work with the best people and the best clients in the world —<br />
it’s simply kick-ass.
Ken Hong<br />
Managing Director, Razorfish China<br />
LINKEDIN.COM/IN/KENLIzhOUhONg<br />
I am probably not your typical ad man. Although I’ve spent<br />
more than 13 years in marketing, eight of which have been in<br />
digital, I approach marketing from a strategy and analytics<br />
perspective rather than the typical creative angle. Over the<br />
years, I’ve helped many clients including Microsoft, Nike,<br />
Unilever, Best Buy, Expedia and L’Oreal develop and execute<br />
global and local digital marketing programs. I have also held<br />
various positions in marketing and finance functions within<br />
Fortune 500 companies. I currently lead Razorfish in China,<br />
where I set the strategic direction for the agency, and manage<br />
day-to-day operations.<br />
Originally from Shanghai, I have spent 17 years studying and<br />
working in Switzerland and the U.S. Before returning to<br />
Shanghai to run Razorfish, I was the vice president of strategy,<br />
analytics and innovation in Razorfish’s Seattle office.<br />
When I’m not trying to figure out how to bring more digital<br />
innovation to our clients, I love playing golf and traveling. So<br />
I’ve concluded that playing golf in Hawaii is the most efficient<br />
way to spend my vacations.<br />
Marc Sanford, PhD<br />
Director, Customer Insight Group<br />
@MMSANfORD<br />
LINKEDIN.COM/IN/MARCSANfORD<br />
I have been with Razorfish for more than four years and<br />
specialize in delivering custom analytics solutions to both internal<br />
and external clients. While the insights and analytics group has<br />
many standard approaches to solving clients’ problems,<br />
sometimes these issues don’t fit neatly into these approaches.<br />
I delight in working directly with clients, learning about their<br />
business challenges and designing business and analytics<br />
solutions. Examples of such innovation come from leading the<br />
development of the personalization offering within our agency,<br />
building a team of skilled folks to create the generational tag for<br />
tracing and measuring social behavior through the spread of<br />
social applications (patent pending), and partnering to help<br />
develop and implement the razorfishOPENTM framework across<br />
several clients. During the past four years or so, I’ve worked<br />
with a wide range of clients including Microsoft, Best Buy,<br />
Levis, CLEAR, Disney and others.<br />
Prior to joining Razorfish I received my PhD in Sociology from<br />
the University of Chicago and worked at the University of<br />
Maryland as an adjunct professor of sociology. My dissertation<br />
was a study of purchasing patterns of roughly 800,000 people<br />
over a two-year time period in the city of Chicago. I revealed<br />
unique patterns of similarity in consumption through cluster<br />
analysis, logit and probit regressions, adjacency analysis and<br />
other statistical and ethnographic techniques.<br />
Outside of work I am a new father enjoying the special moments<br />
a new father has with his son, and learning to cope with less<br />
sleep. I enjoy watching the University of Washington Huskies<br />
and spending time with my wife. I also try to play bluegrass<br />
guitar when I am able to find some free time.<br />
OUTLOOK REPORT | VOL 10<br />
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114<br />
Mark Taylor<br />
VP, Customer Insight Group<br />
LINKEDIN.COM/IN/MARKChRIStOphERtAYLOR<br />
I’m a big believer in customer-centric marketing to solve our<br />
clients’ business problems and help them bridge the gap<br />
between their brands and customers.<br />
Since swapping tea bags for coffee beans as part of my<br />
relocation from London to Seattle in 2007, I’ve learned the<br />
inner workings of ad-serving data, advanced analytics, and Big<br />
Data-led solutions to address client challenges for the likes of<br />
Microsoft, Best Buy, Staples and Intel.<br />
As vice president of the customer insight group, my team and I<br />
collaborate with other disciplines to translate business challenges<br />
into holistic and market-first solutions for our clients across the<br />
network. Part of this team’s role involves architecting actionable<br />
insights and implementing dynamic, targeted marketing strategies<br />
that deliver measurable results.<br />
Prior to joining Razorfish, I headed up customer experience at<br />
Homechoice, the first U.K. IPTV platform owned by Time Warner,<br />
Sony, Disney and Chris Larson (Microsoft co-founder). I’ve also<br />
worked in senior management roles for Centrica, Organic Inc.<br />
and SITEL Corporation, leading a variety of customer strategy<br />
engagements with Fortune 100/FTSE 100 companies.<br />
In my spare time, my wife does her best to get me to do more<br />
yoga, and I’ve embraced U.S. MLS football (that’s “soccer”<br />
to you Americans) as a season ticket holder at the mighty<br />
Sounders FC. I also serve as an advisory board member for<br />
the University of Washington Business Extension Program.<br />
authOrs and cOntriButOrs<br />
Paul Gelb<br />
VP, Mobile Practice<br />
@pAULgELb<br />
LINKEDIN.COM/IN/pAULgELb<br />
I’ve had one of the more unique career paths at Razorfish; I<br />
started as an MBA intern in the strategy group and now I head<br />
up the agency’s mobile practice. My trajectory is undoubtedly a<br />
testament to Razorfish’s ability to support personal development<br />
and unconventional entrepreneurial pursuits.<br />
In my current role as vice president of mobile practice, I oversee<br />
a team that includes strategy, site/app development, messaging<br />
programs, media, search and ad creative. But mobile is more than<br />
my job; it’s a personal passion. I am, almost without exception,<br />
carrying at least four mobile devices: three smartphones and<br />
a tablet. This contagious desire has led to an unrelenting output<br />
of groundbreaking mobile work for almost every Razorfish.<br />
Specifically, we’ve developed 16 applications that were listed<br />
as a top app or featured in the iTunes App Store, including the<br />
top branded application of 2008 and an iPad app that became<br />
the number one free download. We’ve also designed some of<br />
the most successful mobile commerce sites to date, generating<br />
more than 15 percent conversion rates and more than $2 billion<br />
in annual revenue.<br />
Our success has not gone unnoticed; our clients have won mobile<br />
marketer of the year, luxury mobile marketer of the year, and<br />
several min and Digiday awards. In 2010, I was the youngest<br />
person awarded Mediaweek’s Media All-Star Award. My point of<br />
view and industry projections have been sought out by The New<br />
York Times, The Wall Street Journal, Forbes, Advertising Age,<br />
Forrester and Mobile Marketer. I’ve been identified as a thought<br />
leader in the industry with speaking engagements at SXSW, MMA,<br />
IAB and OMMA conferences. I have an MBA from the Anderson<br />
School of Business at UCLA and a BS in International Business and<br />
Macro-Economic Theory from the ILR School at Cornell University.
Pete Stein<br />
President, East<br />
@pStEIN211<br />
I have always believed that the whole is greater than the sum<br />
of its parts. That belief, along with a thirst for exploration, has<br />
guided my decisions throughout life.<br />
When I found the Internet, I knew that my affinity for being on high<br />
performing teams would be satisfied. This is a business where<br />
technologists and marketers, creatives and project managers,<br />
math geniuses and account people all must come together to<br />
crack codes and solve riddles. Creating an environment where<br />
the best ideas can rise from the mosh pit is part art and part<br />
science — and always interesting.<br />
As for that thirst for exploration, I’ll never forget my first encounter<br />
with the Spyglass browser in 1995 — it was love at first sight.<br />
I knew that the browser would open a whole new world and<br />
luckily for me, it keeps on changing. Every few years, the playing<br />
field dramatically shifts, and to succeed you need to completely<br />
re-orient yourself.<br />
As the president of the east for Razorfish, I am lucky to be able<br />
to tap into my passions every day. I’m surrounded by talented<br />
people who share my belief in the power of collaboration. We<br />
get to work with some incredible brands like Mercedes-Benz USA,<br />
Unilever’s Axe, Citibank, Starwood and Ford Motor Company —<br />
brands that have all embraced winning through digital.<br />
You can find me on LinkedIn or on Twitter. And on the weekends<br />
you can find me coaching the power of team play to one of my<br />
kids’ sports teams.<br />
Pradeep Ananthapadmanabhan<br />
Chief Technology Officer, VivaKi<br />
LINKEDIN.COM/IN/pRADEEpANANth<br />
As the chief technology officer for VivaKi, the division of<br />
Publicis Groupe that oversees digital and media, I’m responsible<br />
for envisioning and executing the engineering strategy that<br />
supports our suite of data-driven applications. This includes<br />
our digital advertising trading desk as well as one of the world’s<br />
largest data warehousing/BI operations. Both are targeted at<br />
increasing the ROI on advertising spend through the strategic<br />
use of technology.<br />
Before joining VivaKi in 2010, I was with Razorfish for more than<br />
six years, most recently as the group vice president of technology<br />
for the west region. In that capacity, I led a team of 30+ engineers<br />
who brought to life digital strategies for brands such as Singapore<br />
Airlines, the National Football League (NFL), Intel, Microsoft<br />
and Westfield.<br />
After completing my Master’s in Information Systems Management<br />
from Carnegie Mellon, my first job was with NEC Solutions.<br />
My Web 1.0 portfolio includes developing and launching initiatives<br />
for Sun Microsystems and Wells Fargo, among others. Nowadays,<br />
the technologies that interest me most are enterprise content<br />
management, cloud computing, touch frameworks, mobile<br />
platforms and Web performance management.<br />
While not thinking about terabytes and petabytes, you’ll find<br />
me watching long Bollywood movies, hiking some of the most<br />
beautiful trails of Northern California, or reading about time<br />
and space and wondering if we do exist at all.<br />
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Rafi Jacoby<br />
Social Technology Lead<br />
@RjACObY<br />
As an engineer, I always think there must be new and better ways<br />
to solve a problem. I like to work end-to-end — building servers,<br />
designing databases, working with asynchronous queues, and<br />
creating dynamic HTML5/CSS3/JavaScript URLs. I have been<br />
working with the major social platform APIs since they became<br />
available, and am a co-author of Koala, the leading Ruby Gem<br />
for Facebook’s Open Graph. I’m very much a practicing geek —<br />
if you ask me if something can be done, I’ll likely throw together<br />
a Sinatra app to do some testing. I wrote this biography using Vim.<br />
Before joining Razorfish, I was director of engineering at Context<br />
Optional, where I guided the development of a leading social<br />
monitoring and publishing platform, architected custom<br />
applications, oversaw operations, and built highly scalable<br />
infrastructure and statistics components. I grew the business<br />
using cloud deployment services, and spoke on the experience<br />
at GigaOM Structure, as well as seminars for Oracle/MySQL and<br />
Joyent, and an in an interview in Cloudbook magazine. My prior<br />
experience includes experimental embedded consumer devices<br />
work at Sun Microsystems Labs, mobile telephony infrastructure<br />
and several digital music services.<br />
At Razorfish, I work with our offices and clients across the<br />
country (and sometimes the world) to help guide conception and<br />
implementation of projects that integrate with social networks.<br />
I’ve worked on custom applications, mobile-social crossovers,<br />
site-wide Open Graph implementations and Twitter hooks. I also<br />
track platform changes and evangelize new developments.<br />
Even though I faced the cold as a kid in New York and a computer<br />
science student at Oberlin, I’m preparing for the shock of my first<br />
Chicago winter after spending 13 years in San Francisco. You<br />
can follow my tweets about it, interspersed with my thoughts<br />
on social tech, cloud computing, open source and more.<br />
authOrs and cOntriButOrs<br />
Ray Velez<br />
Global Chief Technology Officer<br />
@RvELEz<br />
LINKEDIN.COM/IN/RAYvELEz<br />
When I wrote my first basic program on my Atari 800 I was<br />
hooked; I’ve been spending time with computers ever since.<br />
I studied computer science and philosophy at Boston University,<br />
looking to bring the answered and unanswered together. The<br />
thing that keeps it exciting is that it’s constantly changing and<br />
always fresh. That’s something I’ve always loved about this<br />
business, and something that’s certainly growing at a faster<br />
pace than ever before.<br />
As the global chief technology officer for Razorfish, I manage<br />
the agency’s capabilities in Web technology architecture and<br />
development, overseeing all of the company’s technologists.<br />
A core part of this role involves looking to the community for<br />
collaboration, and I’m consistently amazed by technologies like<br />
good old message boards and wikis. (In fact, I was fortunate<br />
to help Razorfish build our internal, award-winning wiki.)<br />
My professional experience has been in the application<br />
development life cycle, from inception to rollout, working with<br />
clients ranging from Citibank to Ford Motor Company to the<br />
National Football League (NFL). Most recently, I was the startup<br />
CTO in Razorfish’s role as incubation partner for Bundle, a<br />
personal finance start-up. I also enjoy training and creating<br />
curriculums, and recently led the development of the Razorfish<br />
Agile Process. I’ve been in the industry for close to 20 years,<br />
having worked previously at Cambridge Technology Partners<br />
and Scient.<br />
Anything outdoors is my passion, whether biking, skiing or hiking<br />
with the family. Over the years I’ve enjoyed mountain bike and<br />
ski racing, and was fortunate to ride across Costa Rica in La<br />
Ruta de Los Conquistadores. I also find the DIY culture very<br />
inspiring; I’m looking forward to hacking some Arduino with<br />
my son someday soon.
Salim Hemdani<br />
Group VP, Experiences and Platforms<br />
@ShEMDANI<br />
ASKDUDE.COM<br />
For 13 years I have been developing and deploying digital<br />
experiences. I’ve spent eight of these years with Razorfish. I love<br />
solving hard client problems on a ubiquitous medium — the<br />
Internet — because its ability to provide a level playing field to<br />
everyone around the world fascinates me. Even more fascinating<br />
is that I live and breathe this digital world, despite the fact that<br />
my first encounter with television was at age 11; my first<br />
computer was at 19.<br />
I started with Razorfish as a developer. Ecommerce and<br />
community development are my fortes — building cutting edge<br />
experiences is my passion. My principal is simple — “Engineering<br />
enables experience.” In other words, “Let’s build an experience<br />
that is not constrained by technological limitations.” At Razorfish,<br />
most of my time has been spent on-site with clients, learning<br />
their processes and culture. Digital consulting requires a unique<br />
blend of expertise, adaptability and agility. I have learned a lot<br />
working with brands like Microsoft, AT&T, Nike, Dell, Best Buy,<br />
Costco, Fujitsu America, Nintendo, Safeco and Wells Fargo.<br />
I have also worked with several start-up companies.<br />
I currently serve as group vice president of experiences and<br />
platforms. I oversee the creative, user experience, delivery<br />
and technology disciplines for Microsoft business and also act<br />
as executive sponsor for all digital experiences executed by my<br />
team of incredibly talented and passionate people.<br />
I am an executive MBA graduate from the University of<br />
Washington in Seattle and I earned my engineering degree<br />
from VNIT Nagpur in India. I am proud member of Beta Gamma<br />
Sigma International Owner Society.<br />
Thomas Sudassy<br />
Media Research and Publisher Relations<br />
LINKEDIN.COM/IN/SUDASSY<br />
Duke Ellington delighted in saying, “Music is my mistress,”<br />
and I share his sentiment. From the days of brandishing a Sony<br />
Walkman II as a teenager, to hosting radio shows today, I’m<br />
enthralled with the lasting impressions and lessons of music.<br />
The constant evolution of music draws upon the past and<br />
present to create the ideas of the future.<br />
These same qualities are what have attracted me to digital media<br />
and research for the past 11 years. I thrive in fostering relationships<br />
with the most popular of publishers to promising startups to ensure<br />
our clients get the best service and opportunities. And I constantly<br />
roam the research landscape for best-in-class partners and<br />
products that will provide our teams and clients insights for new<br />
ideas and confidence to execute on them.<br />
You can catch me on LinkedIn or occasionally hosting one<br />
of the Saturday Latin shows on KBCS 91.3 FM (kbcs.fm)<br />
in Seattle, Washington.<br />
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authOrs and cOntriButOrs<br />
Tim Perlstein<br />
Group VP, Strategy<br />
LINKEDIN.COM/IN/tIMpERLStEIN<br />
StRAtEgY tEAM bLOg: StRAtEgY.RAzORfISh.COM<br />
I lead the strategy practice within Razorfish’s central region.<br />
We’re a small-but-mighty consulting team dedicated to helping<br />
clients use digital to maximize business performance, unlock new<br />
growth opportunities and — where needed — drive fundamental<br />
transformation of business, marketing and organizational models.<br />
It’s not as easy as it sounds.<br />
Fortunately, we like to solve hard problems — the harder the better.<br />
We like big-picture thinking, rigorous planning and basic arithmetic<br />
done exceptionally well. (Preferably with charts.)<br />
I feel lucky to be part of this talented team and fortunate to have<br />
worked with, and within, so many other terrific organizations. Prior<br />
to Razorfish, Yahoo! let me play two completely different roles:<br />
One focused on customer-centric innovation, the other on the<br />
tactics of online marketing. At Knight Ridder Digital (remember<br />
newspapers?), we tried to save American journalism through better<br />
online ad products (and very nearly succeeded).<br />
I seem to have an affinity for highly disrupted industries and<br />
companies — which these days is pretty much all of them —<br />
and have worked deeply across media, retail, financial services,<br />
high tech and consumer goods sectors. In past lives, I’ve been<br />
a marketing director, product manager, copywriter and editor —<br />
and in the very early days, even a Webmaster, community manager<br />
and HTML coder. If there’s a digital job to do, I’ve probably done<br />
it at some point… or learned a lot from someone who has.<br />
Speaking of learning: I earned my MBA from Stanford and a BA<br />
in Art History from Harvard (senior thesis on Tibetan thangka<br />
paintings). All of which, believe it or not, has been relevant in<br />
some way to my current work in digital strategy.<br />
To find out more, come look me up in Austin, Tex., where I can<br />
usually be found hanging out by the pool with my wife and son…<br />
planning for the future while still very much enjoying the messy,<br />
ambiguous, disrupted present.<br />
William Lidstone<br />
Executive VP, Razorfish International<br />
@WILLIAMLIDStONE<br />
Everyone has a favorite teacher, who at some point during their<br />
education, sparks an interest, or even a life-long passion.<br />
In my case, it was a visionary art teacher who introduced me<br />
to the world of design — the intersection of ideas, art, science<br />
and technology. Twenty years ago, this fascination with ideas,<br />
problem solving and product design also became my career —<br />
coinciding with the timely and meteoric rise of digital media.<br />
In early 1995, I led the design team of the U.K.’s first online<br />
shopping mall. A few years later I became head of business<br />
development at OgilvyInteractive, and later head of digital at<br />
Foote, Cone & Belding. Since then I’ve spent almost a decade<br />
at AKQA working with Daniel Bonner (chief creative officer,<br />
Razorfish International), delivering ideas, technology and<br />
products for the likes of Coca-Cola, Ferrari, Fiat, Heineken,<br />
Nike, Unilever and Xbox.<br />
As well as client work, I’ve also been involved in a number of<br />
important initiatives: developing competency frameworks to<br />
nurture expertise, establishing professional development and<br />
leadership programs and finding ways of supporting employees<br />
with young families, despite the demands of digital agency life.<br />
Inspired by a great teacher myself, I’ve recently had the privilege<br />
of educating the next generation of digital product designers, most<br />
notably on Jonathan Ive’s industrial design course at Northumbria<br />
University, as a visiting lecturer. It’s through teaching that I’ve<br />
learned that a truly world-class product requires a blend of<br />
only two key ingredients: The highest standards and the most<br />
capable talent.
Obrigado. Gum xia.<br />
Merci. Ta. Danke.<br />
Arigato. Thank you...<br />
... to the 20 Razorfish team members who we asked to capture and share moments<br />
of inspiration from their everyday lives. Their photos illustrate how ideas ignite at<br />
the intersection of technology and people.<br />
Adam Trimble<br />
Presentation Layer Developer<br />
Behan Gifford<br />
Account Director<br />
Cameron Cooper<br />
Copywriter<br />
Carol Monk<br />
Group Creative Director<br />
Carsten Lindstedt<br />
Senior Concept Developer<br />
Claire Reeve<br />
Designer<br />
Gaurav Bhandari<br />
Strategy Analyst<br />
Jamie Feola<br />
Associate Designer<br />
Kevin Byrne<br />
Analyst<br />
Melvin Hale<br />
Associate Creative Director<br />
Natalie Rodic Marsan<br />
Research<br />
Patrick Kernan<br />
Senior Art Director<br />
Robert Stribley<br />
Senior Information Architect<br />
Sara Giessen<br />
Senior Designer<br />
And special thanks to Liz Stevison for her illustrations of our authors and contributors.<br />
Shivani Mohan<br />
Researcher<br />
Thomas Guy<br />
Senior Designer<br />
Tim Pethel<br />
Art Director<br />
Toby Past<br />
Creative Director<br />
Todd Ziaja<br />
Associate Creative Director<br />
Tomoko Kuwahara<br />
Designer<br />
Will Fikes<br />
Art Director<br />
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Contact<br />
For Additional Information:<br />
outlookreport@razorfish.com<br />
Media Inquiries:<br />
press@razorfish.com<br />
About Razorfish<br />
Razorfish creates experiences that build businesses. As one of the largest interactive<br />
marketing and technology companies in the world, Razorfish helps its clients build<br />
better brands by delivering business results through customer experiences. Razorfish<br />
combines the best thought leadership of the consulting world with the leading<br />
capabilities of the marketing services industry to support our clients’ business needs,<br />
such as launching new products, repositioning a brand or participating in the social<br />
world. With a demonstrated commitment to innovation, Razorfish continues to cultivate<br />
our expertise in social influence marketing, emerging media, creative design, analytics,<br />
technology and user experience. Razorfish has offices in markets across the United<br />
States, and in Australia, Brazil, China, France, Germany, Japan, Spain, Singapore<br />
and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, McDonald’s<br />
and Starwood Hotels. With sister agencies Starcom MediaVest, ZenithOptimedia,<br />
Denuo and Digitas, Razorfish is part of Publicis Groupe’s (Euronext Paris: FR0000130577)<br />
VivaKi, a global digital knowledge and resource center. Visit www.razorfish.com<br />
for more information. Follow Razorfish on Twitter at @razorfish.