Saturday, March 8, 2008

How To Develop Good Triggered Email Programs

by David Baker , Monday, March 3, 2008

THE PERFECT EMAIL IS ONE that is relevant to the consumer. Right? It's timely, in context, well-rendered and provides some sort of value. We don't often think of mass mailings as the perfect email. Even with dynamic content and segmentation, this relevance is hard to achieve.

For 10 years-plus, most resort to what we love to call triggered messaging. You get a response from the Web site when you sign up, purchase something, change your status, refer content to another. Today, with the rise of social networks, trigger messaging takes on a new breed. You are deluged with email from your social-networking site "in times of need." That can be in the form of notices from friends looking for jobs, new business opportunities, updated profiles, new content, new music, new events -- the list is endless.

The basis for it is flawless behaviorally driven communications. If you are like most professionals, belong to many feeds, several personal and professional social networking sites and have been reading the bloglines about digital marketing, you hear it and see it first hand and feel it everyday. Effective communications is a challenge. We've abused the phone and email. For marketers, it's a challenge to have less control over syndication. It wasn't too long ago that most organizations challenged the concept of viral content, since they would lose control of the "message," "frequency" and potentially relevance. Today, it's about syndication rather than control, and it's getting a bit out of hand.

Still, there are things marketers can control in this frenzy of communications: triggered email messages. Loren McDonald says I don't like to talk about email 101 very often, so let's take a step back into the basics of what and why a triggered message works.

1. The first step is to identify the potential behavioral events that you'd like to trigger. If you have a lead generation process, a commerce site or simply a functional content site, you have site, sales and customer events. All have many opportunities to deliver a message to your customer.

2. Once you've identified the "events," develop the business rules. This includes audience, the rules that govern this communication, including content and potentially frequency rules.

3. Develop a measurement instrument and hypothesis for the value of each message. Do you want to measure it? If so, how will you measure the impact? There are many gaps in technologies in trying to roll up reporting for triggered messaging. It's not as simple to look at response metrics as it is traditional email campaigns if set up improperly. One company I know has 450 event triggers. Imagine trying to roll up that report on a regular basis.

4. Develop a design system that brings continuity to your message and builds on the experience, creatively. If you are an image rich company and rely on text only triggered messages, reconsider your approach. Should your design system match that of your site, brand, product, stage?

5. Put values on each trigger event in terms of value to the consumer and objective based requirements. There are some messages that have to go out, and some that are optional. So ranking the triggers by priority is critical.

6. Develop a touch-point map to visually see how many touch points you have through email today. This will help you decide which triggers take priority, which you can measure, which can be used to help you understand the positive interactions with your company.

7. Understand your technical limitations. Some systems won't allow you to do anything advanced with content, targeting etc. Some are managed through several systems, so the ranking is important. It lets you know which messages bring the most value and any limitations in delivering the type of message you want.

8. Implement a few and wait. Measure the impact of those new triggers before trying to take on the 30 of so you may have on your touch-point map.

The analysis can take on new life, but since triggered messaging affords the highest response rates for email, it's the best place to begin to do response modeling. And it doesn't take a fully staffed team of analysts to do it.
Post your response to the public Email Insider blog.

See what others are saying on the Email Insider blog.
David Baker is vice president of email solutions at Avenue A/Razorfish. Visit his blog at http://whitenoiseinc.com

Thursday, March 6, 2008

UK Ad Network Adconion Buys Frontline Direct For $20M

Michael Learmonth | March 6, 2008 12:43 PM

UK ad network Adconion Media Group bought Las Vegas-based data management firm and direct marketer Frontline Direct for $20 million in cash and stock. Adconion itself raised $80 million from Index Ventures and Wellington Partners last week.

The WSJ says Adconion plans to use half of the money for acquisitions and technology investments and a quarter to expand in the US. Adconion sells ads on 350 Web sites including The Drudge Report, Sony's Crackle and Demand Media.

Widget marketing 101

http://link.brightcove.com/services/link/bcpid1422253646/bctid1424673566

Tuesday, March 4, 2008

Follow the money: inside the Publicis/Google deal

By David Pasternack

A mind-meld between Google's geeky Ph.Ds and Madison Avenue's pony-tailed creative types could kick-start the next generation of advertising. Here's a look at what the deal might yield.

The ad biz rags have been abuzz with news that Google and French ad holding company giant Publicis have, for the past year, been conducting informal talks about how Google can help Publicis figure out how to create next-generation advertising.

Details of the alliance, "based on a shared vision of how new technologies can be used to improve advertising," were vague enough to stimulate a raft of speculation among the chattering classes. Was Google (which has repeatedly denied that it wants to disintermediate agencies) finally getting into the business via a Trojan Horse arrangement? Would Publicis use this leverage to cut out competing giants such as WPP, whose CEO Martin Sorrell has branded Google as a "frienemy?" What wild new ad units would result from the new synergies made possible from a mind-meld between Google's geeky PhDs and Madison Avenue's pony-tailed creative types?

Let's put this idle speculation aside and focus on the real meat of the deal, which (as is characteristic of everything that happens in the online ad business) is about money. Once you follow the money, everything about this deal makes sense. Here's why:

Time is money, and buying Google's media is too annoying
Despite the mythology that big ad agencies are populated exclusively with people who can't even figure out how to open their email messages, the truth is more complicated. The main reason that more ad dollars aren't flowing into digital is that digital is too hard to buy. If you wanted to reach a million people 10 years ago, you could execute this buy in less than 10 minutes with one phone call. To reach the same million people today, you'd have to have a team in place, which would have to spend a week planning, constructing and executing such a digital campaign.

The irony that digital marketing is labor-intensive hasn't been lost on ad agencies, and Google knows this. Unless it can make it much easier for agencies to buy big chunks of its media, agencies won't bother. Time is money, and ad agencies don’t want to spend time and money on projects whose internal management costs are higher than the cost of the media that's purchased.

Agencies won't buy Google's media without an agency discount
But there's a deeper problem with the way Google sells media than the fact that buying media from it is annoying: It's not profitable.

Every form of "traditional" media, including print, radio, TV and outdoor, has an agency discount associated with it. Agencies make a significant share of their earnings from the spread between wholesale and retail media prices -- except with Google and the other search engines. When buying this kind of media, agencies pay retail, even if they're buying millions of clicks a month. So at the end of the month they're faced with a truly rotten choice: either present their clients with a very high bill (retail price plus media management fee) or a bill without a markup (which means they're going out of pocket running the search campaign).

Given their druthers, agencies wouldn't touch search for this reason alone; those that do will do so as an accommodation, which they do grudgingly in order to keep other profitable parts of the client's business. If Google seriously wants agencies to pony up serious cash, it will have to cut them a break on price.

What will this deal yield?
Google will do two substantive things for Publicis: first, provide it an agency discount (which it will eventually have to open up to other competing ad agencies), and second, figure out some way to vastly simplify all the complicated decisions required to run digital campaigns. Both of these steps are easy to take and will likely be accomplished within a year.

Coming up with a "universal digital marketing dashboard" is a dream that tech-challenged marketers have had for years; the problem with such dashboards is that they're inherently unreliable, and inherently wasteful. They conceal the minutia, and the secret of running effective digital campaigns is to optimize all of the complicated moving parts, which means "working under the hood."

Beyond this, Google clearly has an agenda that it will be busy selling to Publicis, namely how to extract value from numerous expensive properties it has acquired over the years which, from a revenue perspective, have been either disappointing or abject failures. By this I mean YouTube, dMarc, and its various offline media initiatives. None of these have served Google's advertising system; perhaps one of Publicis' old media, pony-tailed creative types can tell Google how to fix them.

Semantic Web Brings Change to SOA


Web DevelopmentIt's impossible to underestimate the impact that SOA, or service-oriented architectures, has had on enterprises and business integration. Whether or not a business has implemented a full-fledged SOA platform, there is still a very good chance that a large portion of their business and partner integration is based on core SOA technologies such as XML.


The funny thing about SOA is that despite its importance, its origins were in many ways a surprise to many of the pundits and experts who followed the technology at the time of its infancy.


Back then, most of the focus on Web services was on the consumer and individual side of the Web. Anyone who sat through early Web services demos most likely saw a sample application designed to help an individual book travel, or buy online goods.


But while all of the pundits were focused on consumer-side Web services (and often predicting the failure of Web services due to the lack of consumer Web services) much of the real work in Web services happened in the nuts and bolts of enterprise back office integration.


Core Web services technologies such as XML, UDDI and WSDL proved invaluable to helping businesses tie together their databases and applications and also integrate with partner applications. And the growth and maturation of these technologies has led to what we today call SOA.


And now SOA is today facing a potentially radical change that could greatly alter the way businesses use and build SOA platforms. And interestingly, the technology that will bring about this change is one that faced a similar growth curve as SOA.


This technology is the Semantic Web, which itself faced misplaced hype in its infancy and is now seeing real growth and interesting implementations that are in many ways different from the initial expectations.


The Semantic Web is Web creator Tim Berners-Lee's next vision for the Web and a technology that has been called (somewhat unfortunately) Web 3.0. In short, the Semantic Web is a set of technologies that make it possible to treat all content and information on the Web as if it was data in a database. In a semantic-enabled Web, whole new types of applications and mashups become possible as everything on the Web is tagged, marked and linked to accurately portray what it is.


Not surprisingly, these technologies could have a huge impact on how Web services and SOA systems are deployed.


Think about a typical Web service. The technologies of Web services tell systems how to connect, how to map to each other and how to convert data. But they can't tell anything about the services themselves. To a SOA enabled system, there's really no difference between a WSDL for a supply chain system and a WSDL for reading RSS feeds.


But in a semantically enabled SOA, the services would actually describe themselves. In these scenarios, it would be possible to write implementations that would automatically find all services and data that had been tagged to meet a specific SOA need (say for example tax information).


These capabilities, along with other important Semantic Web technologies such as SPARQL, which essentially brings SQL-like querying capability to the entire Web, could revolutionize how SOA systems are built and used and, most importantly, how they evolve.


In a semantic-enabled SOA, whole new realms of information become possible, and I expect we will soon start to see radically new SOA systems that leverage Semantic Web technologies.


Will it be SOA 3.0? I sure hope not. But it will be very interesting.

Monday, March 3, 2008

Social Media: 'Agencies Don't Get It,' Survey Says

TNS/Cymfony study polled more than 60 marketers

Feb 28, 2008

-By Brian Morrissey


adweek/photos/stylus/18106.jpg

If social network marketing is a puzzle, agencies might not be equipped to help clients see the big picture.

NEW YORK Clients are placing more emphasis on mastering social media but find their agencies ill equipped to help them succeed in that space, according to a new survey.

TNS Media Intelligence/Cymfony polled more than 60 marketers in North America, France and the U.K. to gauge how they are faring navigating the world of social media. It asked them for feedback on their agencies' abilities to help. TNS found, in its words, "Agencies don't get it."

Clients complained that their agencies -- creative, media, public relations, design and others -- typically treat social channels like blogs as traditional media. In other cases, their ideas are not backed up by practical skills in the area. What's more, one client pointed out that his agencies have little of their own experience using social networks or video-sharing sites for themselves.

"I think traditional ad agencies have very little contribution to make," Bryan Simkins, a marketing specialist at FedEx, told TNS. "They are mostly driven by their compensation models which are made for closed media. Those models don't apply in open media."

The increase in social media has led other analysts to highlight the dearth of skills at agencies to help clients navigate the social landscape. Forrester Research, for instance, published a report last month that found agencies are poorly structured to help clients leverage opportunities with communities of shared interests.

"The existing marketing partners do not understand the ins and outs of the social media space," David Harris, e-business manager at Suzuki, told TNS. "They can do more harm than good if they apply old models."

Jim Nail, chief marketing and strategy officer at TNS Media Intelligence/Cymfony, said frustration from clients surveyed, only some of which was published, was across the board.

"You get the sense that agencies talk a good game," he said. "They put up a good presentation about what social media is, but when you get to implementing campaigns, the day-to-day management skills are not meeting the marketers' expectations."

That could haunt agencies as more clients make social media a top priority.

Nearly 50 percent of marketers said social-media efforts needed to be handled at an executive level with "significant" resources. Another 30 percent agreed social media is a "revolutionary opportunity."

In his comments, Intuit's Scott Wilder called it a "Pandora's box" of consumers relying on word of mouth to evaluate companies and products.

"One of the big barriers right now is people are struggling with where this lives and how it is incorporated into their organizations," Nail said, pointing out that social media cuts across marketing, public relations and customer service.

The perceived lack of social media competence at agencies will present opportunities for new providers, Nail predicted, as too many agencies hew narrowly to their niche, whether it's media, creative or PR -- something backed up by client feedback.

"I really think that agencies need to focus heavily on how they can build excitement within the live space of the Internet," Carolyn Holliday, e-marketing manager at Fila USA, told TNS. "Outside of just placing ads, they need to start dialogues with existing and potential customers."

Building a Brand with Widgets


The customizable bits of software on Facebook and other social networking sites are the latest trend in viral marketing. But are widgets here to stay?

The cards were stacked against A&E Television Network as it tried to generate positive buzz about its new series, Parking Wars. For one, it's a reality show about meter readers. Two, the show doesn't feature celebrities. "We thought if we could find a clever way of increasing consumer interaction with the concept behind the show that we would increase curiosity in the show itself," says Lori Peterzell, A&E's vice-president for consumer marketing.

So A&E hired area/code, a multimedia game developer, to build an online game based on Parking Wars. Played on the social network Facebook, the game has users park virtual cars on friends' profile pages, or "streets," while slapping tickets on cars parked on their own page and avoiding tickets themselves.

Grand Theft Auto it's not. What makes Parking Wars unique is how it's distributed. The game is passed from one person to the next by way of widgets, small bundles of software that users can download, customize, and forward to a single pal or an entire contact list with the click of a mouse. Widgets like Parking Wars, which are designed for a specific social networking site, are typically referred to as applications. Since its Dec. 17 introduction, Parking Wars has attracted more than 198,000 unique users, many of them repeat players, and generated more than 45 million page views.

Raising Brand Awareness

"It's surpassing our expectations," Peterzell says. A growing number of companies hope they'll be wowed by widgets, too. Electronic Arts (ERTS), Viacom's (VIA) Paramount Pictures, Sony Pictures, Gap (GPS), Hewlett-Packard (HPQ), Hallmark, and Blockbuster (BBI) are among the businesses hoping to spread a marketing message or raise brand awareness through these modules of content used by millions of social network users to customize profiles or communicate with friends.

Interest in widgets is rising as marketers become disaffected by other methods of online advertising, especially on social networks. Google (GOOG) executives said in January they're not generating as much revenue as expected (BusinessWeek.com, 1/31/08) from placing ads on News Corp.'s (NWS) MySpace.

Some marketers say widgets may do a better job engaging users than, say, so-called banner ads emblazoned across the sides of social network profiles. "Content and functionality are the new creativity—it's not about whether you have a whiz-bang rich media banner running," says Andy Bateman, CEO of brand consultancy Interbrand New York. "Are you doing something that's actually helpful and useful to people?"

Some Facebook Campaigns Have Fizzled

There's plenty of anecdotal success. Sony Pictures promoted its Resident Evil zombie flick by running a sweepstakes in conjunction with Rock You's popular Zombies application, which lets people send virtual zombies to bite their friends. Sony Pictures had hoped 10,000 people would sign up for its contest, and instead got 1 million takers, says RockYou CEO Lance Tokuda.

But there are even more examples of branded Facebook applications from household names such as Blockbuster, Hallmark, and Verizon (VZ) that have fallen flat. The market for ad-related widgets is still in its infancy, as evidenced by eMarketer projection that U.S. Web widget and application ad spending in 2008 will amount to $40 million, just 2.5% of the $1.6 billion in U.S. online social network ad spending. The verdict is out on whether widgets will become an integral part of social networking marketing and ad campaigns or whether they are, as some critics say, a passing fad.

The potential audience is vast. MySpace has some 110 million active users worldwide, and Facebook has a little more than 66 million. Yet of the nearly 17,000 applications on Facebook, only 138 had more than 1 million installations on Feb. 25, according to Adonomics, a firm that tracks Facebook statistics.

A Short Shelf Life for Many Widgets

To do well, branded widgets typically must engage users often, piggyback on existing popular applications, and be aimed at the right audience. "It's very challenging to maintain someone's interest over a long period of time," says Debra Aho Williamson, a senior analyst at eMarketer. "Applications and widgets have a pretty short shelf life."

In fact, the adoption rate of many applications on social networking sites looks something like a steep bell curve, typically with rapid adoption at the outset and a quick drop when the enthusiasm ebbs. Depending on the application, that lifespan can be days, weeks, or months. The applications with the longest life tend to be those where developers constantly add new features to get users to come back.

Another recipe for success is joining forces with an already popular application. Independent widget makers Slide and RockYou have mastered the art of building applications that hook users and get passed liberally from one person to the next. One of Slide's most popular Facebook applications is SuperPoke, a communication tool that lets people do everything from send virtual hugs to throw virtual objects at friends. At one point, Samsung Electronics (SSNGY) sponsored a tool that lets users throw a picture of an HDTV at pals.

Reaching Out to a Younger Audience

Many adults may not immediately see the appeal of throwing a sheep or an HDTV at a friend. Then again, they're probably not the target demographic. RockYou, for instance, designs applications that appeal to teen girls. "Our goal is maximum reach, and teen girls are the most viral people on the planet," RockYou's Tokuda says.

In creating applications for Facebook, TripAdvisor wanted to reach a younger audience than its traditional 35-44 demographic. It has tried a mix of buying advertising on other applications and creating its own. "You can spend a lot of money buying installs if your application is not viral," says Christine Petersen, the company's senior vice-president for marketing.

Petersen would rather create her own applications and hope for organic growth. In-house application building is less expensive. It's also a better way to build a brand, she says. The efforts don't always pan out, but the stakes are sufficiently low that it can afford some flops. TripAdvisor's Cities I've Visited, a map where people can show where they've traveled, has been very successful. At its peak, Cities I've Visited was installed by 7.8 million people. It took two people about three days to build that application. Another app, a quiz called What Obnoxious Traveler Are You?, launched on Jan. 29, fared considerably worse, and has garnered only 500 installations as of Feb. 26. "It's been a dud," says Petersen.

Developers Are Lining Up to Make Widgets

Peers at other companies concur. "The great benefit of doing a Facebook application that only took three weeks to build is that it's very inexpensive and your opportunity to experiment is very high," says Neil Young, group general manager at Electronic Arts. Young says that Electronic Arts has spent less than $200,000 over several months with developer Context Optional to build and run a trivia game called Smarty Pants, a pared-down version of a Wii game by the same name that EA sells. He estimates that many independent developers charge between $15,000 and $50,000 a month to build and maintain branded applications such as Smarty Pants.

There's certainly no shortage of programmers willing to make widgets. Facebook has attracted more than 150,000 active developers since May, 2007, according to Developer Analytics, a company that tracks the Facebook developer community. One draw is that Facebook lets indie developers sell advertising on their applications and keep the profit. Yet some social networking sites, including MySpace, were initially reluctant to open pages to an influx of third-party widgets (BusinessWeek.com, 5/22/07). MySpace is now offering developers the opportunity to make money from their applications.

The same goes for social networking site Bebo, which officially opened to third-party developers on Dec. 12. Already NBA, Yahoo! (YHOO), Gap, and other brand marketers have created applications for the site. About 5,000 Bebo users have added the Gap's ModelMaker application, where they can become virtual Gap models by adding their photos and choosing outfits, a pose and a scene.

Plagued by Lack of Standard Metrics

RockYou's Tokuda says he also expects social networking sites hi5 and Orkut to give developers tools to create third-party applications within the next five weeks or so.

Still, it may be a while before widgets become an advertising and branding force to be reckoned with. Because of a lack of industry standard metrics, it's difficult to compare the relative success or failure of widgets, and just how much a widget is worth (BusinessWeek.com, 1/7/08). What's more, many users are getting turned off by advertising on social networking sites (BusinessWeek.com, 7/7/08). "I think application fatigue is real, and it will force people to look at what they're developing and how much they're spending," says TripAdvisor's Petersen.

Others wonder if advertising widgets can work at all on social networking sites. "Frankly, I'm very skeptical about the whole thing," says Ben Kunz, director of strategic planning at Media Associates, a media planning firm. Part of the problem, says Kunz, is that a person has to be receptive to advertising, and that's not the case with many people when they're surfing around social networking sites. "There's so much talk about viral marketing, but if it were really that easy to do, then everybody would be doing it."

Still, that isn't deterring A&E from going to the ad widget well. The company is considering widgets for shows besides Parking Wars, Peterzell says, adding: "We're in the middle of looking at concepts for returning series and for some other shows and titles being launched later this year."