Posts by chrisohara

I am the head of global marketing for Salesforce DMP and Data Studio, products which help marketers identify, expand, and activate their digital audiences across every consumer touchpoint. I am a frequent contributor to industry journals, an also the author of 6 best-selling books about food and drink.

Measuring Digital Marketing Success

MeasuringSuccessAccording to Blue Kai, I’m a tech-savvy, social media-using bookworm in the New York DMA, currently in the market for “entertainment.” At least that’s what my cookie says about me. Simply by going to the Blue Kai data exchange’s registry page, you can find out what data companies and resellers know about you, and your online behavior and intent.

In this brave new world of data-supported audience buying, every individual with an addressable electronic device has been stripped down to an anonymous cookie and is for sale. My cookie, when bounced off various data providers, also reveals that I’m male (Acxiom), have a competitive income (IXI), three children in my family (V12), a propensity for buying online (Targusinfo) and am in mid-management of a small business (Bizo). I’m also in-market for a car (Exelate) and considered to be a “Country Squire,” according to Nieslen’s Prizm, which is essentially a boring white guy from the suburbs who “enjoys country sports like golf and tennis.” Well, I’m horrible at tennis, but everything else seems to be accurate.

As a marketer, you now have an interesting choice. Instead of finding “Country Squire” or “Suburban Pioneer” on content-specific sites they’re known to visit, now I can simply buy several million of these people, and find them wherever they may be lurking on the Web. This explains why you suddenly see ads for BMWs above your Hotmail messages right after you looked at that nice diesel station wagon on the VW.com Web site.

Today’s real-time marketing ecosystem works fast and works smart. But, how do you decide whether to buy the cookie or the site?

Most marketers insist that audience buying is meant for performance campaigns. This is largely a pricing consideration. Obviously, if I want to sell sneakers to young men, it makes sense to buy data and find 18-35-year old males who are “sneaker intenders” based on their online behavior and profile, and reach them at scale across the ad exchanges. Combined data and media will likely be under a $4 CPM, and probably less since both the data and media can be bid upon in real time. For most campaigns with a CPA south of $20, you need to buy “cheap and deep” to optimize into that type of performance. It sounds pretty good on paper. There are a few problems with this, however:

What are they doing when you find them? 
OK, so you found one of your carefully selected audience members and you know he’s been shopping for shoes. Maybe you even retargeted him after he abandoned his shopping cart at footlocker.com and dynamically presented him with an ad featuring the very sneakers he wanted to buy, and you did it all for a fraction of a cent. The problem is that you reached him on Hotmail and he’s engaged in composing an e-mail. What are the chances that he’s going to break task and get back into the mind-set of purchasing a pair of sneakers? Also, what kind of e-mail is he composing? Work? A consolation note to a friend who has lost a loved one? Obviously, you don’t know.

Maybe you reached that user on a less than savory site, or perhaps on a social media site where he’s engaged in a live chat session with a friend. In any case, you have targeted that user perfectly—and at just the wrong time. This type of “interruption” marketing is exactly what digital has promised us it wouldn’t be.

Perhaps a better conversion rate can be found on ESPN.com, or a content page about basketball, where that user is engaged in content appropriate to the brand.

How do you know where the conversion came from?
Depending on your level of sophistication and your digital analytics tool set, you may not be in the best position to understand exactly where your online sales are coming from. If you’re depending on click-based metrics, that is even more true. As a recent comScore article points out, the click is a somewhat misleading metric. Put simply, clicks on display ads don’t take branding or other Web behavior into account when measuring success.

Personally, I haven’t clicked on a display ad in years, but seeing them still drives me to act. Comparing offline sales life over a four-week period, comScore reports that pure display advertising provides average lift of 16 percent and pure SEM provides lift of 82 percent—but search and display combined provide sales lift of 119 percent. So you simply can’t look at display alone when judging performance—and you have to question whether you’re seeing performance lift because you’re targeting, or because your buyer has been exposed to a display ad multiple times. If it’s the latter, you may be inclined to save the cost of data and go even more “cheap and deep” to get reach and frequency.

How do you value an impression?
Obviously, the metric we all use is CPM, but sometimes the $30 CPM impression on ESPN.com is less expensive than the $2 RTB impression from AdX. Naturally, your analytics tools will tell you which ad and publisher produced the most conversions. Additionally, deep conversion path analysis can also tell you that “last impression” conversion made at Hotmail might have started on ESPN.com, so you know where to assign value.

But, in the absence of meaningful data, how do we really know how effective our campaign has been? I believe that display creates performance by driving brand value higher, and some good ways to measure that can now be found using rich media. When consumers engage within a creative unit, or spend time watching video content about your brand, they’re making a personal choice to spend time with your message. There’s nothing more powerful than that, and that activity not only drives sales, but helps create lifetime customers.

For today’s digital marketer, great campaigns happen when you understand your customer, find them both across the Web and on the sites for which they have an affinity—and find them when they are engaged in content that’s complementary to your brand message. Hmmm . . . that kind of sounds like what we used to do with print advertising and direct mail. And maybe it really is that simple after all.

Chris O’Hara is svp of sales and marketing for Traffiq. He may be reached through his blog at Chrisohara.com.

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Talking Integration at DMEXCO

ChrisOHara_BeetTV

COLOGNE – At Salesforce, the acquisitions keep on coming, most recently that of AI-powered marketing intelligence and analytics platform Datorama. The company’s ongoing mantra is “integration” and it seems to have no shortage of assets to leverage in that quest.

It all stems from what Chris O’Hara, VP, Product Marketing, calls the “fourth industrial revolution” led by things like data, AI and the internet of things.

“It’s harder for marketers to deliver personalization at scale to consumers and that’s the goal. So everything we’re doing at Salesforce is really about integration,” O’Hara says in this interview with Beet.TV at the recent DMEXCO conference.

By way of examples, he cites the acquisition of ExactTarget about four years ago with the intention of making email “a very sustainable part of marketing, such that it’s not just batch and blast email marketing but it’s also your single source of segmentation for the known consumer.” The end result was the ExactTarget Marketing Cloud Salesforce Integration.

In late 2016, Salesforce bought a company called Krux and within six months had morphed it into Salesforce DMP. It was a way to assist marketers in making sense of households “comprised of hundreds of cookies and dozens of different devices” and aggregate them to a single person or households “so can get to the person who makes the decision about who buys a car or what family vacation to take,” O’Hara says.

Salesforce DMP benefits from machine-learned segmentation, now known as Einstein Segmentation, to make sense out of the thousands of attributes that can be associated with any given individual and determine what makes them valuable. Developing segments by machine replaces “you as a marketer using your gut instinct to try to figure out who’s the perfect car buyer. Einstein can actually tell you that.”

In March of 2018, MuleSoft, one of the world’s leading platforms for building application networks, joined the Salesforce stable to power the new Salesforce Integration Cloud. It enables companies with “tons of legacy data sitting in all kinds of databases” to develop a suite of API’s to let developers look into that data and “make it useful and aggregate it and unify it so it can become a really cool, consumer-facing application, as an example.”

Datorama now represents what O’Hara describes as a “single source of truth for marketing data, a set of API’s that look into campaign performance and tie them together with real marketing KPI’s and use artificial intelligence to suggest optimization.”

In addition to driving continual integration, Salesforce sees itself as “democratizing” artificial intelligence, according to O’Hara. “There’s just too much data for humans to be able to make sense of on their own. You don’t have to be a data statistician to be able to use a platform like ours to get better at marketing.”

This interview is part of a series titled Advertising Reimagined: The View from DMEXCO 2018, presented by Criteo. Please find more videos from the series here.

The Identity Based Data Platforms of the Future

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Today’s disparate traditional databases and connected devices make “people-based” marketing as difficult and awkward as this interaction. 

Currently, marketers don’t have a single source of truth about their consumers. Tomorrow, there must be a single place to build consumer profiles with rich attribute data, and provisioned to the systems of engagement where that consumer spends their time.

At a recent industry event, we heard a lot about the upcoming year in marketing, and how data and identity will play a key role in driving marketing success.

As a means to master identity, some companies have heralded the idea of the customer data platform (CDP), but the category is still largely undefined. For example, many Salesforce customers believe that they already have a CDP. The reason? They have several different ways of segmenting known and unknown audiences between a data management platform (DMP) and CRM platform.

In an article I wrote here last year, I introduced a simple “layer cake” marchitecture, describing the three core competencies for effective modern marketing. In such a fast moving and evolving industry, I have since refined it to the core pillars of identity, orchestration and intelligence:

marchitecture cake

With this new marchitecture, brands have the ability to know consumers, engage with them through each touchpoint and use artificial intelligence to personalize each experience.

Mastering each layer of complexity is difficult, requiring an investment in time, technology and people. Lets focus on perhaps the most important – the data management layer where the new CDP category is trying to take hold.

The next wave of data management

By now, it’s safe to say marketers have mastered managing known data. A few years ago, when I was working for a software company that also managed postal mailing lists, I was astonished at the rich and granular data attached to mailing lists. There is a reason direct mail companies can justify $300 CPMs – it works, because direct marketers truly know their customers.

After joining Salesforce, I was similarly awed by the power to carefully segment CRM data, and provision journeys for known customers spanning email, mobile, Google and Facebook, customer service interactions and even community websites.

How can we get to this level of precision in the world of unknown (anonymous) consumer data?

As marketing technology and advertising technology converge, so must the identity infrastructure that underlies both. Put more simply, tomorrow’s systems need a single, federated ID that is trust-based. Companies must have a single source of truth for each person, the ability to attach various keys and IDs to that unified identity, as well as have a reliable and verifiable way to opt people out of targeting.

Let’s take a look at what that might look like:

federated ID

This oversimplification looks at the various identity keys used for each system and the channels they operate in. Today, the CRM is the system of record for engaging consumers directly in channels like direct mail, email campaigns and service call centers. The DMP, on the other hand, is the system of record for more passive, anonymous engagement in channels like display, video and mobile.

When consumers make themselves known, they “pull” engagement from their favorite brands by requesting more information and opting into messaging. At the top of the funnel, we “push” engagements to them via display ads and social channels.

As a marketer, if you have the right technologies in place, you can seamlessly connect the two worlds of data for more precise consumer engagement. The good news is that, martech and adtech have already converged. Recent research from Salesforce shows that 94% of marketers use CRM data to better engage with consumers through digital advertising, and over 91% either already own or plan to adopt DMP over the next year.

So, if mastering consumer identity is the most important element in building tomorrow’s data platform then what, exactly, are the capabilities that need to be addressed? There are three:

1. A single data segmentation engine

Currently, marketers don’t have a single source of truth about their consumers.

Here’s why: Brands build direct mail lists and email lists in their CRM. Separately, they build digital lists of consumers in a DMP tool. Then, they have lists of social handles for followers in various platforms like Facebook and Twitter. Consumer behaviors like browsing and buying that happen on the ecommerce platforms are often not integrated into a master data record. And distributed marketing presents a challenge because a big mobile company or auto manufacturer may have thousands of franchised locations with their own, individual databases.

Segmentation is all over the place. Tomorrow, there must be a single place to build consumer profiles with rich attribute data, and provisioned to the systems of engagement where that consumer spends their time.

2. Data pipelining and governance capabilities

This identity layer must also have the ability to provision data, based on privacy and usage restrictions, to systems of engagement.

For example, when a consumer buys shoes, they should be suppressed from promotions for that product across all channels. When a consumer logs a complaint on a social channel, a ticket needs to be opened in the call center’s system for better customer service. When a person opts out and chooses to be “forgotten,” the system needs to have the ability to delete not only email addresses, but hundreds of cookies, platform IDs and other addressable IDs in order to meet compliance standards with increasingly restrictive privacy laws and, more importantly, giving consumers control over their own data.

Finally, marketers need the ability to ingest valuable DMP data back into their own data environments to enrich user profiles, perform user scoring, as well as build propensity models and lifetime value scores. This requires granular data storage, fast processing speeds and smart pipelines to provision that data.

3. Leaping from DMPs to holistic data management

Ad technology folks are guilty of thinking of cross-device identity (CDIM) as the definition of identity management. Both deterministic and predictive cross-device approaches are more important than ever, but in a world where martech and adtech are operating on the same budgets and platform, today’s practitioner must think more broadly.

Marketers can no longer depend solely on another party’s match table to bridge the divide between CRM and DMP data. A more durable, and privacy-led connector between known and unknown ID types is required. Moreover, when they can, marketers need the ability to enrich email lists with anonymous DMP attributes to drive more performance in known channels—now only possible when a single party manages the relationship.

These three tenets of identity are the starting point for building the data platform of the future. The interest and excitement around CDPs is well placed, and a positive sign that we are evolving our understanding of identity as the driving force behind the changes in marketing.

[This article originally appeared in Econsultancy’s blog on 2/1/2018]

4 Better Ways to Sell Technology

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A lot of you guys make your living selling technology in the advertising and marketing technology space. It’s a great and noble occupation, but not for everyone. Our industry moves very fast, and software is always a stutter step behind. We are trying to solve problems for big brands and media companies, and a lot of what we sell sounds pretty much the same as the competition. Even if you truly have the best product, it’s really hard to get people’s attention. When you finally get it, it’s very hard to truly differentiate yourself and your products. In first meetings and big pitches, you have to leave the meeting accomplishing three basics: your potential customer should like you enough to work with you, trust you to do the work, and believe that your company can solve their problem.

In first meetings and big pitches, you have to leave the meeting accomplishing three basics: your potential customer should like you enough to work with you, trust you to do the work, and believe that your company can solve their problem. Like, trust and belief are pretty simple asks—but very hard to establish in meetings.

Does your typical one-hour meeting look like this?

  • Get the monitor set up and internet access established (10 minutes)
  • Go around the room with introductions (5 minutes)
  • Salesperson introduces the meeting and explains why you are there (10 minutes)
  • Salesperson gives the standard “about the company” pitch (15 minutes)
  • Subject matter expert talks about some use cases and benefits (20 minutes)
  • Demo (0 minutes. Oops. No time left for demo).

I have been in many of these meetings as a potential buyer, and I have also presided over quite a few of these meetings. Some are better than others, but for the most part, they are pretty terrible. Here are four things you can change up for your next meeting.

Stop the Slides

Here’s what happens when you deliver a slide presentation. If you show a slide with text on it, your audience will start reading it. In fact, they will finish reading it way before you stop delivering the content, and then they start thinking about what they are going to do for lunch. Maybe you think you’ve built the most perfect slide ever…full of compelling content and gleaming with ideas? Well, perhaps you have but you’ve alienated half of the room; the slide is the perfect level for the folks who already get it, and way too technical for the newbies (or vice versa). The approach here is to use a good headline and a gigantic picture of something interesting. Show a hammer, elephant, or a guy jumping out of a plane. The internet is full of great options. “Why is there a picture of a guy jumping out of a plane?” your prospect wonders. Your potential client will listen to you until he figures it out.

Grab a Marker

In the technology space, we sell a lot of complicated stuff, and we have a lot of ‘splaining to do in meetings, to borrow the popular Desi Arnaz phrase. Many of our potential customers don’t really know how the Internet works, and that’s okay. A 23-year old media planner at an agency isn’t immediately required to grok the differences between data integration types, but they still have influence over considerable budget dollars. What they need is some education, and that’s where your friend the whiteboard comes in. Why do mediocre actors salvage their careers on the stage? Because it’s harder. You have to know your material, deliver your lines, and there’s nowhere to hide. People respect that, and they will respect you when you close your laptop, pick up a dry erase marker and start explaining what your technology does, why it’s different, and how it will solve a problem. Plus, the element of theater is fun. People know exactly what you are going to say when you deliver a slide, so you will likely be judged on your delivery and the cut of your suit. Pick up a marker, and you will be judged by the size of your brain.

Show, Don’t Tell

Similar to the educational nature of whiteboarding, there is magic in a good software demo. After explaining all of the wonderful problems you are going to solve over 40 minutes, you will likely have a highly skeptical audience. Every other vendor has rolled in and also promised to solve the age-old “right person, right message, right time” conundrum, and you are just the latest in the pack. Whenever there is an opportunity to go into the software and demonstrate exactly what you are talking about, you should take it. “Did you ask about my integration with Amazon? Great, let me pull that up in our UI and show you exactly what to do.” As an industry, we also seem to suffer from using solutions engineers as a crutch. Guess what? If you need a highly technical person to walk through a few screens, then your client just found out that you have a product that only his most technical people can use. That’s a gigantic loser. If you sell software, you should be capable of giving a basic UI demo.

 Tell Stories

People are people, and they communicate best with storytelling. You don’t need to be a latter-day Walt Disney at your next meeting, but you do have to be able to tell a story similar to this: “Ron from Big Company has the same exact problem you guys are having. We worked with Ron and his team for 18 months and figured out exactly how to solve it. Ron is now an SVP. Hey, we should get you out to lunch with Ron, and he can tell you all about it.”

An old boss used to tell me that a sale needs to get your client “paid or made” We can certainly help people get paid by saving the money through efficiency, and “make” their careers with a successful implementation. People love to hear that similar people are having the same issues, and they don’t want to feel left behind. By golly, if this was good enough for Ron at Big Company it’s good enough for me. A good story should be realistic, inspire, differentiate your technology—but also be referenceable.

Because they will call Ron.