Why Brands Must Orchestrate for Content

Why is content orchestration needed across the organization — all departments included, no exceptions? Here’s a recent example of a near-missed opportunity.

The client recently launched a content marketing initiative, one that’s rich in blog entries and videos around health and wellness. Six months into the program, which is governed by the social media marketing department, the metrics all look good: repeat visits, brand favorability, page views — so much so that the program will be expanded with a site redesign and new features.

One planned new feature is giving readers the ability to subscribe to email updates. The social team did some digging and learned the company is already working with a major email service provider, so the machinery is in place to add that ability.

This is where it bears mentioning that this particular organization is in a highly regulated industry. Marketing activities can only be conducted in certain states. Moreover, different brands of the parent enterprise come into play on a state-by-state basis. To say marketing for this organization is highly segmented is an understatement.

Clearly, because what’s at play here is content marketing, the sell is soft. In fact, it’s non-existent in terms of this particular content initiative. Yet it’s possible that could change, or that the company might elect to add a link, a call-to-action, or a promotional “brought to you by” message in the footer of the subscription emails.

All that’s possible, and more. Subscribers could be asked to indicate in which state they reside when signing up for the emails. Email append could be used on the list to segment subscribers on a state-by-state basis in order to insert the relevant brand name into the messages.

All these ideas are as possible as they are (for now) theoretical. Yet none were entertained by the social media department running the campaign. This would very likely be to the chagrin of the email division, or the direct marketing group, had they known of the plans afoot (which, of course, they do not).

This is only one recent, real-life example of why organizations must organize for content. Without cross-functional communication, coordination, expertise, and goal-sharing, companies are doomed to be mired in inefficiencies, missed opportunities, reduplicated efforts, and just plain not sharing the very high levels of expertise inherent in the broad array of digital practice areas.

How to organize is, of course, the question. Few enterprises have a formal content division or an executive expressly charged with overseeing content initiatives. Recently, research I conducted included asking 78 companies how they’re tackling the content issue. Only nine of them have, to date, made express content-related hires (i.e., people with titles containing “content” or “editor”).

Unsurprisingly, this leads to ad hoc content and content responsibilities that tend to be based more on factors like hand-raising than expertise or strategy. Case in point, here’s how one major brand has allocated content responsibilities:

Yes, models have emerged to address the need to synchronize, manage, coordinate, and optimize content strategy, creation, production, and distribution. Not all of these frameworks necessitate increasing headcount, a solution that at the majority of organizations is quickly filed under “easier said than done.”

Read the rest of this post on iMedia Connection, where it originally published.

New Research: Organize for Content

More than a handful of brands publish more content now than a major media property such as Time Magazine did 25 years ago.

Despite the overwhelming and ever-increasing trend toward content marketing, and the need to continually feed an ever-increasing portfolio of content channels and formats, most organizations haven’t yet addressed content on either a strategic or tactical level.

It’s high time they did, and hopefully my new research report, Organizing for Content, will help. It provides both frameworks for coping with enterprise content marketing demands and a checklist of recommendations for organizational readiness.

Consider: The average organization is responsible for the continual content demands of an average 178 social media properties, to say nothing of a myriad of other owned media properties, from websites and blogs to live events.

Those few large enterprises not yet active in social media can easily serve five million email subscribers, as well as multiple millions of monthly unique visitors per month to their sites.

Yet the overwhelming majority of organizations don’t have content divisions in their org charts. Only nine of the brands we interviewed for this report (out of 78 stakeholders, also including content service providers and domain experts) have made explicit content hires, i.e. people with titles such as “editor” or those that contain the word “content.”

Who, or what, governs content internally? Responsibilities and oversight tend to be reactive, highly fragmented and distressingly ad hoc, as illustrated below. This highly typical diagram portrays how one major retail brand divides content responsibilities between divisions that are not necessarily interconnected or in regular communication with one another. This fragmented approach leads to inconsistent messaging, huge variations in voice, tone, and brand, and an uneven customer experience. Channel divisions themselves tend to be ad hoc, assigned more on the basis of hand-raising than any overarching strategic mandate.
Where Does Content Live Inside the Enterprise?
 It’s high time that organizations got organized for content. It’s only going to become more demanding – and harder – in the future.

Native advertising, advertorial, paid influencer, and sponsored content are just a few examples of the paid/owned media hybrids brands are exploring. Content must also be created for an ever-expanding spectrum of media, screens, and devices, ranging from smartphones and tablets to emerging platforms, such as augmented reality, Google Glass, and quite possibly devices like smart watches.

These new channels and platforms, coupled with a trend that de-emphasizes the written word in favor of visual and audio-visual content,  create new skill demands. “Hire a journalist,” a tactic many organizations adopted with the rise of blogging, now is in no way sufficient to address more technical requirements involving deeper knowledge of technology, production, design, and user experience. Requiring overtaxed and untrained staff to “do content” in their spare time is obviously hardly a solution.

Our research identifies six organizational models companies are using to address complex, cross-departmental content needs, and also contains a recommendations checklist for content preparedness. Please download the report (at no cost, we just ask that you share it if you like it), and let me know your reactions in the comments.

I’ll also deliver my findings in a webinar on Wed., May 29 at 1:00 EST. Please register and join us! 

Read and/or download the report below:

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Four Disruption Themes for Business

By Altimeter Group’s Research Team

  • Analysts: Susan Etlinger, Charlene Li, Rebecca Lieb, Jeremiah Owyang, Chris Silva, Brian Solis
  • Consulting: Ed Terpening, Alan Webber
  • Researchers: Jon Cifuentes, Jessica Groopman, Andrew Jones, Jaimy Szymanski, Christine Tran

Over 30 Technologies Have Emerged, at a Faster Pace than Companies Can Digest.

If you think social was disruptive, it was really just the beginning. Altimeter’s research team recently convened for our annual research offsite and found over 30 disruptions and 15 trends that have emerged (see below for the full list in our Disruption Database). These disruptions and trends will affect consumers, business, government, the global economy; with accelerating speed, frequency and impact.

Altimeter's Business Disruption Themes

Four Major Business Disruptions Emerge – Business Leaders Must Prepare.

Out of these disruptions and trends, Altimeter identified four major themes that will be disruptive to business. Below is a preview of Altimeter’s four business disruption themes, with a definition and short description of each. In the coming weeks, we’ll publish a short report explaining these themes in more detail.

Everything Digital: An increasingly digital landscape – including data, devices, platforms and experiences – that will envelop consumers and businesses.

Everything Digital is the increasingly digital environment that depends on an evolving ecosystem of interoperable data, devices, platforms – experienced by people and business. It’s larger than the scope of Internet of Things, as it’s pervasive or ambient – not defined only by networked sensors and objects, but including capabilities such as airborne power grids or wireless power everywhere. Everything Digital serves as the backdrop for our next three themes.

Me-cosystem: The ecosystem that revolves around “me,” our data, and technologies that will deliver more relevant, useful, and engaging experiences using our data.

Wearable devices, near-field communications, or gesture-based recognition are just a few of the technologies that will make up an organic user interface for our lives, not just a single digital touchpoint. Digital experiences will be multiplied by new screen types, and virtual or augmented reality. Individuals who participate will benefit from contextualized digital experiences, in exchange for giving up personal data.

Digital Economies: New economic models caused by the digital democratization of production, distribution, and consumption.

Supply chains become consumption chains in this new economy as consumers become direct participants in production and distribution. Open source, social, and mobile platforms allow consumers to connect with each other, usurping traditional roles and relationships between buyers, sellers, and marketplaces. Do-it-yourself technologies such as 3D printing and replicators will accelerate this shift, while even currency becomes distributed and peer-to-peer-based. In this new economy, value shifts towards digital reputation and influence, digital goods and services; even data itself. The downside? An increasing divide between digital “haves” and the digital “have-nots.”

Dynamic Organization: In today’s digital landscape, dynamic organizations must develop new business models and ways of working to remain relevant, and viable.

Business leaders grapple with an onslaught of new technologies that result in shifting customer and employee expectations. It’s not enough to keep pace with change. To succeed, dynamic organizations must cultivate a culture, mindset, and infrastructure that enables flexibility and adaptability; the most pioneering will act as adaptive, mutable “ad-hocracies.”

Altimeter’s Disruption Database

Below are the 30 digital disruptions and 15 digital trends, which were used as the starting ground of our analysis.

Disruptions Trends
3-D Printing and Replicators
App Economy
Artificial Intelligence (AI)
Augmented Reality (Google Glass)
Automated Life (Cars, Homes, Driving, etc.)
Automated Robots
Bio-Engineering
Biometric Authentication (Voice/audio, fingerprint, body/eyescan, gesture, olfactory user interface Content Marketing
Digital/Social TV vs. “Second Screen”
Emerging Hand Held Devices / Platforms (Android, Tablet, Phablet)
Gamification
Gesture/Voice-Based Interface/Navigation / “Human as Interface”
Hacking/Social Engineering and Information Security
Haptic Surfaces (Slippery, wet, textured through electrical currents)
Healthcare – Data and Predictive Analytics
Human-Piloted Drones
Hyper-Local Technology / Mobile Location / Indoor Mapping
Internet of Nanoparticles (Embedded in bloodstream)
MicroMedia Video
Mobile Advertising
Mobile Payments
Native Advertising
Natural Language Processing
Near Field Communications
Open Source / Open Data / Open Innovation
Peer-Based Currency / Soical Currency (BitCoin)
Proximity Based Communications
Social Engagement Automation (Robots Respond on Twitter)
Social Network Analysis, Graphing, and Data Science
Social Technologies
Touch Permeates Digital/Surfaces: TVs, Touch Advertising
Virtual Reality / Immersive 3D Experiences
Wearable / Embedded Technology
Wireless Power / Electricity
Big Data
Collaborative Economy
Connected Workplace
Customer Experience Design/Architecture and Integration
Data Convergence/Customer Intelligence
Data vs Creative in the Org: New Decision Process
Digital Ethnography or Customer Journey Mapping
Digital Influence and Advocacy
Evolution of the Center of Excellence
Generation C
Hypertargeting
Internet of Things or Internet of Everything
Intrapreneurship, Innovation Culture, and Innovation Hubs
Pervasive Computing
Porous Workplace
Privacy: Standardization and Regulation (“Beware of Little Brother”)
Quantified Self or Human API
The Digital Journey and Understanding Digital Signals
The Maker Movement
The Neuroscience of Digital Interactions


Open Research: Please Share Your Comments and Insights with Us.

There’s more to come – we’ll be sharing additional insights such as 1) top questions for businesses to ask, 2) who’s disrupted and who benefits, and 3) enabling technologies.

In the meantime, we’re soliciting your comments as part of our Open Research model. Please share our themes with others, and help us answer these questions:

  • What other business disruptions or trends are you seeing? Please add to this Google form and we’ll provide proper attribution.
  • Which of these four business disruption themes impact your business now?
  • How is your business responding to these themes, or the related disruptions and trends?

Photos from Altimeter’s Research Offsite

Below are a couple illustrations that resulted from the discussions that took place at our research offsite:

Mock Up of Disruption Marketecture

Above Image:  Altimeter synthesized these disruptions and trends, which become broader themes. 

Graphic Illustration from Altimeter Research Offsite

Above Image: A graphic illustration of our synthesis. Thank you to Paula Hansen who was instrumental in visually capturing our discussions in real-time.

Reposted from the Altimeter Group blog 

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Organizing For Content

gears_shutterstockHow should organizations organize for content? Are brands really publishers? Very few have hired people with “content” or “editor” in their titles. Fewer still (read: almost none) have content departments or divisions within the marketing or other organizations.

Yet, more and more companies are producing content like crazy. Also, multiple websites. Large corporations have tens of millions of visitors to their dot-coms each month, perhaps five to 10 million email subscribers. Then, there are blogs, YouTube channels and multiple social media channels on social networks.

Like journalists, brands are challenged to “feed the beast,” often on a daily basis, sometimes in real time. All this content isn’t just written word. It’s images, videos, charts, infographics… Put all of this together and the process, workload, and workflow demands become truly staggering.

Yet, most companies have adopted content strategies that amount to little more than asking employees already juggling the demands of full-time jobs to please produce content, too, in addition to their day-to-day duties. Not only does this approach not scale, but these employees aren’t trained in either content marketing or content strategy.

Something’s got to give, and I’m currently conducting research to try to learn how companies are making room for the demands content is placing on marketing, communications, IT, customer service and CRM.

We’re analyzing our finding now and will publish our report in April. In the meantime, the questions we asked dozens of interview subjects may perhaps help organizations to assess their own content needs as they relate to workflow, process, technology and partnerships.

If you’re producing content, start asking yourself these questions. And, please let me know if we left anything important out you’d like to see included in future research.

General

• What’s your role? Where do you sit in your company’s org chart? 

• Do you have a dedicated content department or division? (Since when? What spawned it? How were buy-in and budget secured? )

• If you don’t have one, do you need one? If yes, how will this move forward?

• Which team determines the main messages or story line for products and initiatives? Is it a function of product marketing, corporate marketing, and/or do you collaborate across departments?

• Where does/should content sit in your company’s marketing org chart?

• Do you have a dedicated content staff? How many? Titles? Level of seniority?

• What content are you/your group responsible for creating?

• What target audience(s) or product group(s) does your team’s content serve?

 

Please read the rest of this post on MarketingLand, where it originally published.

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Content Marketing in the Organization

Does your organization have a content marketing department? If not, you’re hardly alone.

While commitment to and investment in content marketing is skyrocketing year over year, there are far from hard and fast rules, and only barely emerging best practices, regarding how content fits into existing marketing functions.

Content generally doesn’t exist as a department or even a job function; nonetheless, it’s everywhere. Content touches virtually every marketing function from corporate communications to social media to creative, advertising, community, customer service, product groups, and digital/Web services.

Organizations are increasingly seeing the need for someone to oversee content as well as execute on content creation and dissemination – but where to start? How do the pieces fit together?

Most often, in my experience, the “we need someone to do content” cry originates in the social media practice. Because this group constantly both creates and responds to content, they’re usually first to realize that the organizational need for content extends far beyond their purview.

Read the rest of this post on MarketingLand, where it originally published.

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Digital Marketing & Media: What to Watch in 2013

Predictions can be fascinating, but let’s face it. No one I know is in possession of a working crystal ball, and digital marketing and technology move way too quickly and too erratically to do much more than keep us guessing (not crystal-ballthat that isn’t half the fun).

I’m an analyst, not a psychic. So rather than play the “what’s next?” guessing game, let’s instead focus on “what’s important?”

These are the areas I plan to keep a close eye on in 2013. What would you add — or subtract — from this list?

1. Media Convergence The blending of paid, owned and earned media will continue and intensify in 2013 spawning new technological solutions, necessitating new skills, new workflow systems and new partnerships. As the lines continue to blur between what’s paid, owned and earned in digital (and soon, traditional) media, this will be the trend that governs nearly all other major change in the digital marketing and media landscape.

2. Native advertising Between banner blindness and the fact that display, search and social advertising has largely moved toward programmatic buys that are much less profitable for publishers, we’re seeing a number of technologies and solutions emerge to facilitate native advertising, one of many terms for plonking content (often, unbranded content) into ad units (a manifestation of media convergence). Products and solutions in this area will continue to emerge, more publishers will accommodate it, and no doubt we’ll see some interesting, large-scale media partnerships emerge as a result.

3. Demand for broader skills and tighter workflows will intensify intensifies Looping back again to media convergence, the increasing overlap between paid, owned and earned channels is creating a demand to bring in new skills and more closely integrate workflows within disciplines. Take PR, for example. Traditionally, public relations has specialized in owned (content) and earned (in the sense of traditional) media. Throw in native advertising and suddenly PR agencies are faced with the prospect of media buying, a skill that’s always been the exclusive domain of advertising agencies.

And with media buying come other skills such as media optimization and analysis. Put otherwise, digital, which has become increasingly siloed and Balkanized in recent years, will no longer be able to pull the “that’s not my table” routine. All players must develop an understanding of related digital channels (search, social, email, analytics), as well as come together around a table and really, truly play as a team.

4. Real-time marketing & listening platforms Real-time marketing demonstrably works — not just in social channels, but across the marketing spectrum. A recent GolinHarris study finds real-time not only positively impacts standard marketing goals — word-of-mouth, attention, preference, likelihood to try or buy — but it also turbocharges other marketing initiatives, including paid and owned media effectiveness. Event- and news-driven marketing will become increasingly vital as brands work to become more relevant. This requires sophisticated listening and monitoring platforms, and often 24/7 staffing. Teams require tools, and training to respond in accordance with social media policies and in the brand’s voice. They must also be permitted to work in an agile environment, free of the chain-of-approval strictures that are antithetical to real-time marketing.

5. Organizing for content marketing & content strategy As brands recognize the necessity of adding content to the marketing mix, they quickly realize something else. Precious few organizations have a Content Division. In 2013 brands will begin to address this deficiency in earnest. They will hire, reorganize and make room on the org chart for effective content marketing operations that work in concert with existing marketing functions from social to communications to brand, creative and advertising.

6. Visual information takes precedence Research I published in early 2012 demonstrates that when marketers are asked what kind of content they’ll be investing in going forward, anything visual takes precedence over the written word. The unfettered growth of Pinterest, infographics, Instagram, and Tumblr, not to mention the always-growing popularity on online video, bears this out. Visuals capture attention. In a world in which brand messages clamor for consumer attention across screens, devices and channels, a picture is worth the proverbial thousand words. Keep your eyes open in 2013. It’s going to be a colorful and visually arresting year.

7. Online/offline channels converge, i.e. everything becomes more digital As media become more digital, we’re seeing digital messages appear in new places: out-of-home channels such as billboards and digital signage, as well as TV screens, are hosting streaming and social media.

The above are my top seven, but I’ll be keeping an eye on some other trends next year. Mobile is always changing rapidly, gamification is developing and interesting, so is wrangling and making sense of big data.

The single most interesting trend in 2013? Easy. It’s the one we don’t even know about yet.

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Yes, There’s Fraud Online. Deal With It.

Breaking: everything you see and read on the internet isn’t true.

Hope you were sitting down for that surprising revelation.  I know, I know, it’s not that big a surprise, but that’s why it’s constantly surprising that people are…surprised by it.

A reporter from one of this country’s leading metropolitan dailies contacted me recently about the late-summer revelation from Facebook that some 83 million (or 8.7 percent) of its user accounts are fake. Facebook is, after all, a platform based on the value proposition that its users are behind real identities.

Doesn’t this blow Facebook’s value proposition out of the water, the reporter wanted to know. Isn’t this an incredibly high number of fake accounts? How could they allow this to happen?

Relax. The problem is hardly endemic to Facebook. Fake accounts, whether malicious in nature or not (Facebook estimates only c. 1.5 percent of active accounts are, in fact, malicious – the others are mostly duplicates, users under the age of 13, your dog, etc.) come with the territory – online or off.

Facebook is working to identify and disable fake accounts just as the search engines are working to combat click fraud – for years now. As ISPs work to block oceans of spam.

Oh, and did I mention fake online reviews?  Yelp has resorted to a sting operation aimed at shaming businesses that are caught trying to game their ratings system. They’re posting “consumer alerts” on those businesses’ pages, and exposing the emails they send to hire favorable reviewers. (TripAdvisor is also participating in its own version of the walk of shame.) So widespread is the fake-review practice that Gartner estimates by 2014, 15 percent of all online reviews will be fake.

Companies running online sweepstakes often encounter fraud, fakes and undesirable metrics in short order. A few years back, I looked under the hood of several soft drink sweepstakes aimed at males aged 12 – 24 (Coke, Sprite and Mountain Dew, to name a few of the brands). I asked Hitwise (now Experian Hitwise ) to crunch the data. They clocked the overwhelming majority of entrants as low-income females…over 45. They weren’t clicking on ads, but rather on a link on contest-aggregator site Sweepstakes Advantage.

Blame the Internet – Or Human Nature?

Somehow, when fraudulent, misleading or even unintentional things happen online, “the internet” is to blame. Or Facebook. Or Google. Or the dating site that was a 14 year old girl’s first step into a bad situation – never mind that a 14 year old had no business being on the site in the first place.

No one seems to be stepping back and saying things like, “Contests are overwhelmingly popular with low-income, middle aged women. Is it wise to run a sweepstakes to reach young men? If we do elect to go that route, how can we ensure we reach the target audience?”

Just as retailers account for “shrinkage” in financial forecasts, digital marketers must account for wasted clicks and impressions. Comes with the territory. There’s always going to be clickfraud. Chihuahuas and Yorkies will continue to update their Facebook newsfeeds (or, even further violating Facebook’s TOS, allow others to do this for them.) People who aren’t 100 percent neutral (like maybe the owner’s mother-in-law) will review restaurants and hair salons – favorably or unfavorably, depending.

Offline Corollaries are Much Worse

While the media are quick to blame “the internet” for a multitude of crimes related to fraud, companies like Facebook, Yelp, TripAdvisor, Google, Bing, Yahoo, and all the major ISPs get little public credit or acknowledgement for their efforts to combat said fraud. Much of the knowledge we have of online misconduct was revealed by these companies themselves. It’s transparency and disclosure.

Not so their offline bretheren. A quick search of “inflated circulation” results in a veritable rogues’ gallery of news stories indicting companies like Time Inc., News Corp, Newsday and other major publishers of being caught in the act – not openly revealing they are combatting a problem.

Forbes recently indicted USA Today for padding hotel bills to the tune of $82 million annually for those unwanted, untouched copies of the newspaper in front of your door in the morning (nearly one million copies per day that you probably don’t read, and probably are billed for).

Online fraud? Yeah. It’s a problem. It will always be a problem. Just like in the real world.

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Co-Op Advertising: Digital’s Multi-Billon Dollar Opportunity

If you work in digital marketing in some capacity (if you’re reading this, it’s likely you do), you probably devote little to no time thinking about co-op advertising. You may only have the vaguest idea of what coop advertising actually is, or how it works.

While you’re ignoring coop advertising, the manufacturers who run coop programs are equally busy ignoring you. They’re too busy pumping an estimated $50 to $520 billion into their coop programs annually.  Online advertising may be growing by leaps and bounds, but it’s getting significantly less than one percent of this enormous sector of the market (by comparison, GroupM estimates total U.S. advertising spend this year will be $153 billion).

While the above figures indicate valuing the coop advertising market is difficult, clearly it represents a huge reservoir of potential digital spend. So how come digital is getting so little of it? This is a topic I’ve been discussing with the IAB for some time. Recently, they asked me to look into the issue more deeply. My findings are available on the IAB website as a PDF download.  Here’s a brief overview of what co-op advertising is, why digital is missing from the equation, and what steps the industry might take to rectify a clear imbalance.

 Coop Advertising Defined

Coop advertising is an agreement between a manufacturer and a retailer to share advertising costs. Typically, manufacturers underwrite from 30 to 50 percent of advertising costs, though contributions from 75 to 100 percent aren’t uncommon. Different manufacturers have different policies. They may provide creative, furnish the ad, or underwrite only media costs.

There a numerous beneficiaries in this ecosystem. Manufacturers get increased exposure at a lower cost. Retailers benefit from brand name product associations, while smaller retailers who might not otherwise be able to afford to advertise can, thanks to co-op dollars. Agencies and media companies can increase their billings, and media companies fill ad inventory.

The Missed Digital Opportunity

Of over 1,000 coop programs listed in the Local Search Association’s database (representing over 1,700 brands), only 223 permit limited forms of digital advertising, generally search and display. Several explicitly forbid coop dollars from flowing into digital channels. This, despite hockey-stick growth in local search, advertising, targeting, daily deal and coupon sites, etc. (and local is, of course, the bread and butter of retailer-focused coop programs).

A recent study by Borrell Associates estimates the online co-op market currently makes $1.7 billion available, with $450 million of that left on the table “for lack of participation.” Couple this with the majority of co-op programs that limit or preclude allocating spend to digital channels, and the potential value of this market could very quickly exceed $5 to $10 billion per year. This is roughly double 2011’s online retail spend of $7.1 billion (IAB/PwC).

Clearly, it’s time to take stock of the obstacles that prevent this revenue from flowing online. We identified three primary stumbling blocks:

  • Complexity and multiplicity of digital channels On both the manufacturer and merchant sides, the sheer amount of knowledge required to advertise in digital channels is a formidable barrier.
  • Lack of infrastructure On the manufacturer side, co-op advertising sometimes falls under the auspices of marketing, but more frequently is a function of either the sales or the finance department, areas inherently unlikely to be versed in digital marketing strategies or tactics.
  • Lack of guidelines and requirements - Co-op advertising program rules around issues such as logo usage, mentioning competitive products, and general branding requirements are established in traditional channels. Digital provides range of new challenges (e.g. manufacturer rules around bidding on brand or trademarked terms in search).

With billions of dollars on the table, its time the industry met these challenges head on. Our recommendations include strategically and tactically addressing a multipronged approach.

  • Awareness Just as manufacturers and retailers are unaware of the potential benefits of online advertising, not to mention the actual tactics and techniques for executing digital campaigns, so too is the digital ecosystem largely blind to the potential and the workings of co-op advertising.
  • Education Channels, metrics, targeting, and the like are close to a foreign language for many retail executives, particularly the “mom ‘n’ pop” retailer.
  • Standards and best practices Online co-op advertising does exist, particularly in the automotive and durable goods sectors. A closer examination of how successful programs in these verticals function can lead to case studies and ultimately help create templates on which broader co-op programs in different industries can be based.
  • Technology Development of platforms that enable workflow automation would go far to make the co-op advertising process easier both for manufacturers and the often over-burdened merchants who run co-op campaigns. Also useful would be a comprehensive database of co-op programs and digital asset management systems for logos, creative executions, and brand elements.
  • Publisher initiatives - Assist in helping to re-establish the co-op ad manager role, this time with a view toward online display advertising.
  • Cooperation with co-op ad management companies - Many legacy co-op program management companies have expanded into the digital, yet remain unconnected with mainstream publishers and industry trade groups.

The IAB, together with the Local Search Association, have taken an important first step in creating awareness of the value and the lack of coop advertising in digital. The next step is to drum up a broad swath of industry involvement. We need more trade groups (Shop.org and the OPA come to mind) beating this drum with their constituencies. Agencies, technology providers and VCs should be brought into the discussion. Both sides need to talk, and to listen to each other.

Bringing coop advertising online will be neither quick nor easy. But with billions of dollars at stake, you can bet it’s bound to happen.

Here’s the presentation I delivered to the IAB’s Local Advertising Committee on Sept. 5:

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How to Measure Social Media ROI

Measuring digital advertising is relatively easy and

Owned and earned media? That’s a whole other story. The metrics and the methods for measuring digital marketing are less exact, the platforms are newer, while the old rules and models don’t apply.

It’s been easier to groan about “lack of analytics expertise and/or resources,” “poor tools,” “unreliable data,” or “inconsistent analytical approaches” than to roll up collective organizational sleeves and really tackle the social media measurement problem.  Yet with creativity, as well as hard metrics and defined business goals and strategies, organizations are not only measuring social media for ‘soft’ metrics such as brand sentiment, but also ‘hard’ data, such as revenue attribution.

My Altimeter Group colleague Susan Etlinger has been researching the topic and just published the result, “The Social Media ROI Cookbook: Six Ingredients Top Brands Use to Measure the Revenue Impact of Social Media” (available as a free download under the Open Research model).

While there’s admittedly no perfect measurement method, the study identifies no less than six models for measuring social media revenue impact, three “top-down,” and three “bottom-up.” The organizations that measure most effectively use a combination of these methods in concert, and the report provides a four-factor matrix to help determine which of the six methods apply, based on type of business, the product or service, media mix, and customer profile.

The media mix is of particular interest here, as my focus has been on the convergence of paid, owned, and earned media recently (the topic of my newest research report). Converged media models also require converging metrics, presenting the not inconsiderable challenge of applying findings and learnings from paid and owned, for example, into earned media. Or vice-versa, often in real or near-real time.

Like measuring social media ROI, these models are only just emerging. Measuring new media models is complex enough. The new necessity of measuring, learning, optimizing and applying data from one channel to another makes the challenge geometrically more formidable.

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Why Organizations Must Be Faster Than Real Time

Altimeter Group

“I’ll check with my supervisor and get back to you.”

Why doesn’t that remark cut it anymore? More often than not, it’s symptomatic of an organization that isn’t adaptive. One that hasn’t taken advantage of new technologies, or empowered (or trained, or created policies around) the tools and technologies available to their employees. Tools their employees are very likely already versed in and using in their personal lives.

The adaptive organization is one of the themes I’m working on this year as a research analyst. Its ramifications directly target corporate leadership: CEOs, COOs, etc. Next in line is the marketing organization (and who hasn’t heard the refrain that today’s CMO may well be tomorrow’s CTO?).

Marketing organizations are currently siloed. There’s advertising, social, and communications. Digital may be walled off from traditional, content from display and broadcast. All these divisions function as fiefdoms, competing internally for budget and prominence. Within digital alone, there may be display, search, social, email and a long line of sundry et ceteras competing for a piece of the pie

Incentives to work cooperatively are often minimal at best within organizations. Small wonder brands have difficulties getting external agencies, vendors and marketing service providers to work in concert. These constituencies have business and revenue models even less conducive to opening kimonos than do internal staff.

Having just done a deep dive on how paid, earned and owned media are converging (The Converged Media Imperative), it’s become abundantly clear that organizations need to adapt – now – to flow learnings, functions, processes, creative and analytics across all three media channels while eliminating redundancies. Moreover, it’s increasingly necessary to do so with extremely agility; ideally, in real time or something very close to it.

Flowing paid, earned and owned media together is a team effort. Each channel is, on its own, highly specialized. Yet commingling these channels not only results in demonstrably better results for digital marketing initiatives. Converged media is also rapidly flowing out into the “real world” of traditional media as well as offline inevitably becomes more digital. Already we’re seeing examples of converged paid, owned and earned media occur on digital billboards and on television.

Some forward-thinking marketers are already erasing hierarchies between media types. Just weeks ago, Intel’s Nancy Bhagat blended the company’s global and social media teams into a single marketing strategy operation.

“Why does this make sense?,” asks Bhagat on her blog, “ I found we were having similar conversations across teams. The role of communities is not exclusive to the social space. Our paid media partners are looking for ways to drive engagement and conversation in ways previously unheard of. Our social partners are open in an exciting way to new product ideas and testing. The idea of ‘test and learn’ has never been so real.”

So real, or so difficult for enterprise organizations. Take content marketing, for example – or ‘owned’ media. Content is absolutely essential and central to paid, owned and earned initiatives. Without solid content, brands cannot achieve earned media at scale. Earned media amplifies messaging, builds word of mouth and buzz, spreads awareness, and with increasing frequency surfaces those ideas that become the core of creative advertising strategy.

Yet most organizations have yet to develop a plan or an organizational model to create, disseminate, publish, share and govern content. There’s general awareness that content strategy and marketing reside in the marketing org chart, but where? Just today, I spoke with an organization trying to unknot who is creating content where in the enterprise. Are efforts being reduplicated? Resources shared? Best practices and guidelines adhered to?

Their best detective efforts have thus far surfaced over 25 individuals in six distinct divisions who “do” content. It’s assumed very few of these people have met in person, much less collaborated. It’s assumed each group uses its own ad hoc software solutions for managing creation, workflow, resources, etc. Clearly, findings and insights are shared between these disparate content creators, much less their colleagues across the marketing organization.

Real time insights and optimization, and shared learnings that inform other initiatives (not to mention that can inform their own work) are an impossibility in vertically organized, hierarchical organizations. Enterprises must be able to move as quickly as their customers do. This requires bold realignment as well as informed empowerment.

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