Digital Advertising Insights: A Treasure Chest For...
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Digital Advertising Insights: A Treasure Chest For CMOs To Open
Digital Advertising Insights:
A Treasure Chest
For CMOs To Open
EXECUTIVE SUMMARY
Despite good intentions and aspirations, few marketers
take full advantage of digital and social advertising.
For example, after surveying 80 CMOs of large consumer
brands, a majority of respondents reportedly do not
deploy digital advertising for audience and creative testing,
nor to better understand the people in their customer
databases. This report explores these challenges and
SURYLGHV�VWUDWHJLHV�IRU�HPEUDFLQJ�D�ȊGLJLWDO�ȴUVWȋ�PDUNHWLQJ�approach. The result is higher customer relevance,reduced waste, accelerated learning and greater marketing impact.
The CMO Club in partnership with SocialCode
A CMO SOLUTION GUIDE | OCTOBER 2015
Digital Advertising Insights: A Treasure Chest For CMOs To Open
SPECIAL THANKS TO THE MARKETING LEADERS WHO TOOK PART IN SHAPING THIS CMO SOLUTION GUIDE.
Further, every campaign produces still more data to
help marketers learn, and become smarter. Because
of these advantages, brand marketers should lead
with digital, taking advantage of the insights produced
to improve all marketing, and make better business
decisions.
To see whether marketing executives agree with this
approach, SocialCode and The CMO Club surveyed 80 CMOs from large consumer brands, most of whom
spend more than $25-million on paid media annually.
In addition, we conducted one-on-one CMO interviews
to better understand digital marketing and data-
management strategies at large consumer brands.
One of those interviews was with Clorox CMO
Eric Reynolds. Clorox employs an advanced
analytics team to extract insights, often using the
company’s data management platform (DMP). A
'03�LV�D�WHFKQRORJ\�WKDW�IXVHV�RQOLQH�DQG�RɞLQH�ȴUVW�SDUW\�GDWD�IURP�UHWDLO��:HE��HPDLO�DQG�&50��
VHFRQG�SDUW\�GDWD�IURP�SDUWQHUVKLSV��DQG�DQRQ\PL]HG�third-party data from sources like social platforms
RU�FRPSDQLHV�OLNH�'DWDORJL[��Ȋ:H�KDYH�D�'03�QRZ��not only to improve our targeting, but to understand
WKH�YDOXH�RI�RXU�FDPSDLJQV�ȋ�VDLG�5H\QROGV��Ȋ7KHVH�early performance indicators give us answers in
weeks. Our renaissance in the past year has been
incredibly rich. In fact, we hired 24 new people to
GR�ȆWHVW�DQG�OHDUQVȇ�EHFDXVH�RI�WKH�YDOXH�WKH\�SURYLGH�ȋ�
A conversation with 3M’s VP Global eTransformation
Raj Rao yielded similar insight. Because so many
FRQVXPHUV�DUH�ȊGLJLWDO�ȴUVWȋ�WKHPVHOYHV��VPDUW�GLJLWDO�FDPSDLJQV� DQG� GDWD� PDQDJHPHQW� DUH� QRW� RSWLRQV��WKH\�DUH�QHFHVVLWLHV��Ȋ:H�GRQȇW�VD\��Ȇ:H�KDYH�GLJLWDO�FRPSHWHQFH�ȇ�:H�DVN��Ȇ+RZ�GR�ZH�JHW�FRPSHWHQW�LQ�managing customer relationships that are digital?’
'LJLWDO�LV�VR�SHUYDVLYH��LW�LV�KRUL]RQWDO�YHUVXV�YHUWLFDO�FRPSHWHQFH�ȋ�
7KH�Ȋ'LJLWDO�)LUVWȋ�2SSRUWXQLW\Digital marketing and social advertising have fundamental advantages:
Accurate message sequencing and cross-
device analytics
/RZ�FRVW�WHVWLQJ�DQG�UD]RU�VKDUS�WDUJHWLQJ�WR�reduce waste
Rich consumer data for advanced audience
segmentations and relevant messaging
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Eric Reynolds
CMO, Clorox
Raj Rao
VP, Global
eTransformation, 3M
Karen Noel
CMO, Sprint
Lee Applbaum
Global CMO, Patrón
Denise Karkos
CMO, TD Ameritrade
.LHUDQ�+DQQRQCMO, Belkin
International
Digital Advertising Insights: A Treasure Chest For CMOs To Open
$GRSWLQJ�D�GLJLWDO�ȴUVW� VWUDWHJ\� LV� FKDOOHQJLQJ��7DNLQJ�DGYDQWDJH�UHTXLUHV� WKH�ULJKW�PL[�RI�VSHFLDOL]HG�VWD��workflow, technology and executive support. Nonetheless,
RUJDQL]DWLRQV�ZLWK�VWURQJ�GLJLWDO�PRGHOV� FDQ�DFKLHYH�transformational business impact, learning more
about their customers and prospects in less time than
HYHU�EHIRUH��+HUH�DUH�VSHFLȴF�H[DPSOHV�WKDW�HPHUJHG�from our one-on-one CMO interviews.
The Value Of Known Audiences
and User-Level Data
Patrón Case Study: If The People Want Bottle Porn, Bottle Porn They Shall Get
Ȋ:H�QRZ�VWDJH�DQG�VHTXHQFH�RXU�FRQWHQW�and leverage automated marketing in a more
VLJQLȴFDQW�ZD\�WKDQ�ZH�GLG�D�\HDU�DJR��2XU�GHSWK�and breadth of content has truly evolved. That
GLUHFWO\�WLHV�WR�RXU�GLJLWDO�PHGLD�WDFWLFV�ȋ- Karen Noel, CMO, Sprint
Two posts to Patrón’s Facebook page, dated
September 2015.
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:KHQ� /HH� $SSOEDXP� MRLQHG� Patrón as CMO,
much of the brand’s marketing revolved around
what Applbaum referred to as "bottle porn,"
EHDXWLIXO� LPDJHV� RI� WKH� LFRQLF� ERWWOH� RVHW� E\�stunning backdrops. Applbaum thought the
Patrón community might appreciate the brand
F\FOLQJ� GLHUHQW� NLQGV� RI� FRQWHQW� LQWR� WHVWLQJ��like an Oculus virtual-reality campaign that took
consumers through the hacienda where the tequila
is made from the vantage point of a bee.
After studying aggregate response data from social,
display, email open rates and other digital signals,
Applbaum and team found their core audiences
ORYHG�WKH�KDFLHQGD�FDPSDLJQ��+RZHYHU��GDWD�VKRZ�they still loved the bottle as well. The brand takes
advantage of this knowledge by carefully balancing
innovative messaging like the Oculus campaign with
WUDGLWLRQDO�ȊERWWOH�SRUQ�ȋ�XVLQJ�QHZ�IRUPDWV�OLNH�cinemegraphs (still photos with subtle animation) to
engage people while staying fresh.
Digital Advertising Insights: A Treasure Chest For CMOs To Open
Clorox Case Study: Not All Water Drinkers Are Alike
$FFRUGLQJ� WR�5H\QROGV��QHDUO\�D� WKLUG�RI� WKH�EUDQGȇV� FUHDWLYH� LV�SHUVRQDOL]HG��:KHQ�VHUYLQJ�SHUVRQDOL]HG�FUHDWLYH�ZLWK� GLJLWDO� DGV�� KLV� WHDP� VWXGLHG� KRZ� WKH� DXGLHQFH� UHVSRQGHG�GLHUHQWO\� WR� GLHUHQW� WKHPHV��This process helped Reynolds’ team subdivide the core audience into granular segments, which are served
SHUVRQDOL]HG�FUHDWLYH��)RU� LQVWDQFH��%ULWD�GULQNHUV�ZHUH�RQFH�GHȴQHG�DV� �KDSS\��KHDOWK\�ZDWHU�GULQNHUV���Digital-ad insights allowed the Clorox marketing team to group the audience into seven unique segments,
GHȴQHG�E\�YDOXHV�OLNH�KHDOWK��WDVWH��DQG�HQYLURQPHQWDO�FRQVFLRXVQHVV�
TD Ameritrade Case Study: DoingReal-Time Right
:KHQ� 7'� $PHULWUDGH� ȴUVW� DSSURDFKHG� UHDO�WLPH�marketing, CMO Denise Karkos explained the
EUDQGȇV�PDUNHWLQJ� WHDP�XVHG�KLJK�SURȴOH� HYHQWV�UDQJLQJ�IURP�WKH�:RUOG�&XS�WR�WKH�5XQQLQJ�RI�WKH�Bulls as opportunities to motivate investments.
But, the results were not better than the brand’s
traditional campaigns. Karkos and her team shifted
IRFXV� WR�PRUH� UHOHYDQW� HYHQWV� Ȃ� OLNH�PDMRU� ȴQDQFLDO�updates – that alerted long-term investors to the
ȴQDQFLDO�RSSRUWXQLWLHV�LQ�IURQW�RI�WKHP�ZLWK�PRUH�relevance.
Now, when TD Ameritrade does connect itself to major cultural events like the Olympics (an event the
EUDQG�VSRQVRUHG��WKH�JRDO�Ȃ�DQG�WKH�PHVVDJLQJ�Ȃ�LV�GLHUHQW��ΖQ�WKLV�FDVH��.DUNRVȇ�WHDP�WROG�VWRULHV�DERXW�Olympic hopefuls that had subtle branding and no product-forward message. The goal was brand lift, not
LPPHGLDWH�FRQYHUVLRQV��7KH�SUHFLVLRQ�RI�GLJLWDO�DOORZV�WKH�EUDQG�WR�WHOO�ERWK�VWRULHV��DW�GLHUHQW�VWDJHV�RI�the sales funnel, to the right audiences and at the right moments.
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Belkin Case Study: Contextualizing Product Value ... At Dinner Time
$V�&02�IRU�%HONLQ��.LHUDQ�+DQQRQ�LV�UHVSRQVLEOH�IRU�LQWURGXFLQJ�SHRSOH�WR�YDOXH�SURSRVLWLRQV�IRU�:H0R��D�tool that allows people to control home electronics from anywhere. One key strategy is appealing to people’s
HDWLQJ�KDELWV��)RU�H[DPSOH��+DQQRQ�XVHV�WLPH�RI�GD\�GDWD�ZLWKLQ�WKH�EUDQGȇV�GLJLWDO�DGYHUWLVLQJ�FDPSDLJQV�WR�WULJJHU�DGV�DW�GLQQHU��H[SODLQLQJ�WR�FRQVXPHUV�WKDW�ZLWK�:H0R��WKH\�FRXOG�EH�SUHKHDWLQJ�WKH�RYHQ�WR�UHGXFH�WKH�WLPH�EHWZHHQ�IRRG�SUHSDUDWLRQ�DQG�FRQVXPSWLRQ��:KLOH�:H0R�KDV�PDQ\�XVH�FDVHV��WKH�EUDQGȇV�GLJLWDO�DG�VWUDWHJ\�HQDEOHV�WKHP�WR�KRQH�LQ�RQ�WKLV�RQH�VSHFLȴFDOO\�DW�WKH�ULJKW�WLPH��DQG�VHUYH�SHRSOH�ZLWK�PRUH�relevance.
Digital Advertising Insights: A Treasure Chest For CMOs To Open
The Digital Divide Chief marketers have heard these examples and
PDQ\�PRUH��+RZHYHU��H[HFXWLQJ�D�IRUZDUG�WKLQNLQJ�digital agenda is as challenging as it is valuable,
FRUURERUDWHG�E\�NH\�ȴQGLQJV�LQ�RXU�VXUYH\�
Low emphasis on audience and creative testing
A low percentage of CMOs in our survey test
creative and audience combinations with digital
WRROV��0RUH�VSHFLȴFDOO\�����SHUFHQW�RI�UHVSRQGHQWV�in our survey report they do not use digital advertising
to identify new customer segments. This is a lost
opportunity. For example, marketers can learn what
GULYHV�GLHUHQW�VHJPHQWV�WR�D�ȴUVW�WLPH�SXUFKDVH�E\�excluding customers in their CRM from prospecting
campaigns. To illustrate, one of SocialCode’s largest
consumer brand clients discovered in an a/b test
that people with no relationship to the brand converted
IDU�PRUH�HɝFLHQWO\�ZKHQ�VHUYHG�D�GLVFRXQW�YHUVXV�KDYLQJ�WR�SD\�IXOO�SULFH��+RZHYHU��RHUV�KDG�D�PXFK�smaller impact on the brand’s most loyal customers.
$GGLWLRQDOO\�����SHUFHQW�RI�&02V�LQ�RXU�VXUYH\�do not use digital advertising testing to make traditional
advertising channels like TV, radio and print smarter.
Conventional mass media are powerful, though
provide infrequent and imprecise feedback about
what worked, when and why. Porting overnight insights
-- like high-performing audience and creative
combinations -- from digital advertising into
conventional analog channels can amplify impact,
reduce waste and accelerate learning. For example,
one of SocialCode’s Fortune 500 telecommunications
clients used Facebook to test how its core audience
UHVSRQGHG� WR� VL[� RHUV� WKDW� KDG� GLHUHQW� SULFH�points and sophistication. SocialCode helped the
EUDQG� OHDUQ�TXLFNO\� WKDW� WKH�PRVW�EDVLF�RHU�KDG�
WKH� PRVW� HɝFLHQW� FOLFN� WKURXJK� DQG� FRQYHUVLRQ�rates. This insight led the brand’s marketing team
to integrate calls-to-action for its least expensive
RHUV�LQ�WHOHYLVLRQ�FRPPHUFLDOV���
Marketers invest the least in channels on which they can learn most
A major division in modern marketing is whether
targeting is based on estimated or known audiences.
Conventional analog channels like television and
online channels like display usually target audiences
via a research-panel proxy (provided by Nielsen) or a
EURZVHU�FRRNLH��:LWK�WKHVH�PHWKRGV��marketers can understand the programs their desired audiences probably watch, the magazines they probably read or the websites they probably visit 1.
Even with online display, targeting and measurement
is based on a browser or single device, instead of
a known person or audience across channels and
GHYLFHV��7KLV�PDNHV�LW�GLɝFXOW�WR�FRQWURO�WDUJHWLQJ�DQG�frequency, and surface accurate audience and creative
learnings. By contrast, platforms like Facebook,
Instagram, Twitter and Pinterest are tied directly to
NQRZQ�DXGLHQFHV�RU�XVHU�SURȴOHV�DV�ORQJ�DV�WKRVH�people are logged in on their various devices. The
data are key not only in driving performance, but
also in delivering the content, timing and message VHTXHQFH� WR� ZKLFK� GLHUHQW� SHRSOH� UHVSRQG�best.
Despite these advantages, the CMOs we polled spend
nearly 5x more on search and display than social.
1�7KHVH�FKDQQHOV�DUH�PRYLQJ�WRZDUGV�NQRZQ�DXGLHQFHV��H[HPSOLȴHG�WKURXJK�GHYHORSPHQWV�OLNH�*RRJOHȇV�LQWURGXFWLRQ�RI�ȴUVW�SDUW\�DXGLHQFH�WDUJHWLQJ��+RZHYHU��SODQQLQJ��EX\LQJ�DQG�UHSRUWLQJ�DUH�VWLOO�ODUJHO\�EDVHG�RQ�LQIHUUHG�LQIRUPDWLRQ�
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FIGURE 1: Do you test creative and audience combinations with
digital advertising to identify new customer segments?
61%No
39%Yes
FIGURE 3: :KDW�LV�WKH�PDNHXS�RI�\RXU�GLJLWDO�DGYHUWLVLQJ�EXGJHW"
SEARCH DISPLAY SOCIAL
30% 29% 12%
FIGURE 2: Do you test creative and audience combinations with
digital advertising to better deploy advertising on conventional
channels like television, radio and print?
66%No
34%Yes
Digital Advertising Insights: A Treasure Chest For CMOs To Open
Marketers are not (yet) fusing theircustomer databases and advertising
A customer database is incredibly valuable to marketers.
+RZHYHU��PRVW�&02V�IDLO�WR�DPSOLI\�WKH�YDOXH�RI�WKHLU�customer database and advertising by fusing the
WZR��)XOO\�����SHUFHQW�RI�WKH�&02V�ZH�SROOHG�UHSRUW�WKH\�do not use digital advertising to better understand
the audiences within their customer database.
7KLV�LV�QRW�EHFDXVH�PDUNHWHUV�GR�QRW�UHFRJQL]H�WKH�value in doing so. In fact, less than a quarter of our
respondents have no plans at all to use digital campaign
data to better understand their existing customers, and
40 percent plan to deploy the strategy within the
QH[W� \HDU�� :LWK� LQWHJUDWLRQ� WRROV� IURP� SODWIRUPV�like Facebook, a dedicated DMP is not necessary
to take advantage of a hybrid advertising and CRM
strategy.
CMOs Must Control Their
Data To Be Digital First
All other challenges aside, digital and social advertising
success revolves around data. So marketers that
want to better understand their audiences, improve
their creative, fortify their customer databases and
take action based on campaign learning must be in
command. And while a fully developed DMP is not
required to take advantage of cross-channel data,
marketers must at least have comprehensive data
access, transparency and portability. Many marketers
DUH�WDFNOLQJ�WKLV�LVVXH�E\�ZRUNLQJ�WRZDUG�D�FHQWUDOL]HG�data center, which comes together in a dedicated
DMP.
This is why we were surprised to learn that 51 percent
of the CMOs we polled outsource their DMPs to third
SDUWLHV� DQG� DJHQFLHV�� +RZHYHU�� PDQ\� RI� WKH� &02V�we polled are outsourcing as an intermediary step
to build a foundation before taking more control of
WKHLU�GDWD�LQ�WKH�IXWXUH�����SHUFHQW�RI�WKH�&02V�LQ�our survey plan to move their DMP in-house within
the next two years.
FIGURE 4: Do you use online advertising to better understand
the audiences within your own CRM database?
FIGURE 5: Do you expect to manage a DMP internally in the
future?
“You cannot outsource your way out of this."
- Raj Rao, 3M
37%Yes
40%No, but planning
to in the next 12
months
23%No, and not
planning to
within the next
12 months
17%No plans at this
time
24%Yes, currently
managing a DMP
internally
31%Planned post
����
28%Planned for
����
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FUSING CRM AND ADVERTISING: USE CASES
• Cross sell • Upsell• 6FDOH�ORRNDOLNHV�R�PRVW�YDOXDEOH�H[LVWLQJ�FXVWRPHUV• (QJDJH�ODSVHG�FXVWRPHUV• 6XSSUHVV�IURP�SURVSHFWLQJ�FDPSDLJQV• /R\DOW\�SURJUDPV�IRU�UHSHDW�SDWURQDJH• 3URȴOH�IRU�GHPRJUDSKLF�DQG�SV\FKRJUDSKLF�FKDUDFWHULVWLFV
Digital Advertising Insights: A Treasure Chest For CMOs To Open
Mandates
(VWDEOLVK�D�GLJLWDO�ȴUVW�YLVLRQAll channels – from TV to print to radio as well as
&50�DQG�FRPPHUFH�Ȃ�FDQ�EHQHȴW�IURP�GLJLWDO�DQG�social advertising insights that surface around audience
and creative combinations, as well as message
sequencing, timing and frequency. Some of the
greatest insights today are stemming from advertising
platforms with known audiences, like Facebook,
Instagram, Twitter and Pinterest. Identify testing
RSSRUWXQLWLHV� LQ� \RXU� RUJDQL]DWLRQ�� ZLWK� SDWKV� WR�scale as you demonstrate success and identify best
practices.
Map a learning agenda for each campaignDigital advertising campaigns aren’t just an opportunity
WR�EXLOG�EUDQGV�DQG�DFTXLUH�FXVWRPHUV��WKH\ȇUH�DQ�opportunity to answer business questions. They provide
environments to learn rapidly about existing and
prospective audiences, especially when marketers
articulate clear hypotheses before launching.
Take control of your dataData are transformational byproducts of sophisticated
GLJLWDO�FDPSDLJQV��:KLOH�DJHQFLHV��VXSSOLHUV�DQG�WHFK�partners will always be valuable for guiding strategy
and introducing new tools and products, brand
marketers should take control of their data and set
a direction for mastering them over time.
Be agileTo unlock the full value of digital advertising and
learning, marketers need autonomy and authority
to make quick decisions based on what they learn
about their customers, and how they want to be
engaged. They also need to report insights in a
WLPHO\�PDQQHU�WR�RWKHU�SDUWV�RI�WKH�RUJDQL]DWLRQ�WR�inform overall business strategy.
Adopt a storytelling frameworkMarketing to known audiences provides a key
competitive advantage: precision. This includes
precision over who sees a series of messages, the
order in which those messages are served and the
frequency of each. The result? Marketers can move
from message transmission to cohesive storytelling,
with little waste. Marketers who take advantage
of this precision to amplify their narratives will
gain competitive advantage, especially as all media
become digital and addressable.
Business
Strategy
Digital Testing
and Execution
Scale Across
Channels
Business
Results
OPTIMIZE
FIGURE 8: A Digital-First Brand Building Model
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Digital Advertising Insights: A Treasure Chest For CMOs To Open
About The CMO Club
The CMO Club is the world’s most engaged and inspired community of Senior
Marketing Executives who help each other solve their biggest challenges,
within a candid, trusted, and sharing environment. Collaboration fueled by
inspiring events and within the members-only Digital Solutions Clubhouse
raises the standard for what is required to be a successful Chief Marketing
2ɝFHU��:LWK�PRUH�WKDQ�����PHPEHUV��7KH�&02�&OXE�LV�WKH�JR�WR�FHQWHU�IRU�today’s Senior Marketer for peer-based personal and career success support.
For more details, please visit www.thecmoclub.com.
About SocialCode
SocialCode is a technology and insights company that manages digital advertising
for the world’s leading consumer brands. SocialCode decodes human needs
to deliver actionable insights from consumer data on advertising platforms like
Facebook®, Twitter, Instagram and Pinterest. SocialCode is the only major
social marketing platform that combines automation with a strategic services
group. That’s why marketers like AB InBev, Nestle, Capital One, Reckitt
Benckiser and Macy’s trust SocialCode to know what to do now and what to
do next. Visit SocialCode.com to learn more.
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