Friday

Marketing Data Companies. Q&A with Ethan Rapp






Ethan Rapp recently joined Simulmedia as SVP Program Management, bringing “deep experience in marketing effectiveness as well as developing insights and analysis that help define new media paradigms,” according to Mainak Mazumdar, Simulmedia’s Chief Science Officer.


Rapp was an early innovator in digital research at DoubleClick in its formative years and has held senior research roles at AOL, Conde Nast and Knowledge Networks. He also co-founded Marketing Evolution a leading cross media measurement firm.   

Currently, Rapp is responsible for the Simulmedia’s Business Outcomes measurement programs which combine TV viewership data from set top box data with behavioral data including transactions and online activity from various sources. These sources can include credit card data, "First Party" CRM databases and online data management providers like Oracle’s Marketing Cloud.

I sat down with Rapp and asked him the following questions:

CW: Ethan, what do your “Business Outcomes” capabilities enable Simulmedia to do?

ER: We now have the ability to look at client specific "Business Outcomes" relative to Simulmedia television buys AND other television and online components of the client's campaign. Examples of these outcomes can include: offline sales, online sales, basket sizes, transactions by customer segment, online behaviors, etc. It’s really an effort to look at media’s direct impact on a client’s goals in a very transparent way and at the same time demonstrate the value of Simulmedia’s audience targeting.

It should be noted that because we do a lot of “data matching”; we take great precautions to protect privacy, and in fact never ever touch personally identifiable data ourselves; we always use trusted third parties

CW: How does this work with clients?

ER: This has become a critical part of the Simulmedia offering as we are now guaranteeing that our media will produce better business outcomes than traditional television buying and planning. We provide make-goods if we don’t improve overall business outcomes relative to the TV buy made without us. This is a huge step in the industry and takes any perceived risk out of audience buying for the client.

This measurement is provided at no additional charge with a minimum media buy. While we have no intention to become a research company, a lot of what we do is unavailable elsewhere, especially because we can see all TV consumed, including our buy, the other buys of our clients, and even their competitors buys. So as you can imagine, there is a lot of analysis we have the capability to do that doesn’t exist elsewhere. Our analysis can and should inform future planning and buying (that is what makes it truly closed loop).

  
CW: Where is television measurement heading? Will it become more digitally based with connected TVs?

ER: The interesting thing that has happened to TV in the last couple of years is that digital has provided pressure on the CMO and CFO to provide ROI across more media. Until recently, TV has not been able to deliver the same level of visibility that digital can provide. Recently however we have gained access to this great treasure trove of set top box data, which allows us to do far better targeting and measurement.

CW: What do you think the common metrics will be to facilitate cross platform measurement?

ER: I think the “must have” in the industry requires that the metrics for digital media, and the metrics for TV need to eventually align. I don’t think that the result should be the GRP, regardless of how entrenched it is currently. I think it needs to be at a person level, or at least a household level because that is what will enable the understanding of efficiency in media planning. Eventually it needs to be business outcomes. That’s our job. Improve the ability for companies to grow their bottom line with their ad spending.

CW: Is ROI only about the client’s immediate return on a specific campaign or is it broader than that?

ER: The metric has to be at a level where we can measure individuals and markets. Buyers will want to know where they can specifically place efficient media to influence people and move market share, both in the short term and long term. They want to know where they are gaining share from and where they are losing it. ROI needs to be framed by the specific goals of the marketer. That’s why work so hard to make our targeting so robust and our measurement tailored to each client.

I can’t think of a single marketer whose goal is anything other than profitable growth. They crave information to make media decisions on how to optimize their budgets against profitable growth. They want to be able to measure the behaviors and the performance of their spending. The pressure to show ROI or any metric that directly correlates to ROI is what is driving the evolution of media planning. That evolution is now picking up speed and digital has had a lot to do with that. Simulmedia is bringing that online accountability to TV.

CW: What are the greatest difference between digital and TV?

ER: The differences are substantial right now. Objectively there are probably more differences than there are similarities. From a creative standpoint TV gives you emotion. TV gives you reach. TV gives you a brand identity over the short -and long term. Digital has never really proven to do those things in a scalable, lasting way. On the other hand, digital is great for highly targeted buys, to be able to drive short term sales, the ability to optimize and activate in real-time, based on how audiences behave, and to a certain extent create targeted awareness. It is very flexible as a medium. It is a lot harder to create a new campaign in TV in a couple of days where in digital you can create one in a couple of hours. Of course the goal is the same – to drive sales. With all that said, TV is still the most dominant medium against almost any metric you can think of, especially consumption and influence. The imminent death of TV is highly overstated and we are innovating in ways that make it more targeted and more measurable.

Monday

TV Will Be Bigger Than Ever. Q&A with Eric Mathewson of WideOrbit



Eric Mathewson, CEO of WideOrbit, started his career in another numbers-intensive industry - equity derivatives at Kidder Peabody where he focused hedging transactions for venture capitalists and founders of Silicon Valley technology companies. 

During that time he says he gained “a strong appreciation for the importance of systems and databases for enabling consistent profits in exchange-based transactions.” The rest is history as he used capital gained in his Silicon Valley ventures to launch WideOrbit in July 1999 as a way to facilitate the buying and selling of media.


Mathewson has some very clear ideas about media transactions and his company WideOrbit is becoming the de facto go to system for processing media transactions. I asked him the following questions:


CW: What exactly is WideOrbit?



EM: WideOrbit is a software company that develops systems for managing the backbone of media companies. We run their programming and ad systems, which handles all their scheduling programming, yield optimization, the accounting of their orders, invoices, aging and everything else a typical enterprise resource planning software system does.  WideOrbit is now the largest company in the space.  We’re managing 3000-plus stations and more than $30 billion in annual ad spending, primarily in North America.

CW: WideOrbit faced some entrenched legacy competitors in the space. How did you break through?


EM: We always focus on customer referenceability, which is a higher standard than customer satisfaction. Our products and services should meet a level of excellence where end users are willing to recommend them to other end users. Over the years, 88% to 93% of our customers said they would recommend us to a colleague. That Net Promoter Score has been a huge source of growth and competitive advantage, and it makes a big impact on a customer’s willingness to spend more money with us.


CW: How are you handling cross platform buys and sells?

EM: Transactions where DSPs enable cross-platform buying inventory are really only just now starting to emerge. We’ve prepared for this kind of demand to scale by investing in technology that enables both Real-Time Buying in digital display as well as linear audio and video inventory.


CW: Generally speaking (and I know there is a wide range of targets) what is the most efficient way to buy media today?

EM: I may be a tad biased on this point. The most efficient way to buy media today is through programmatic platforms that aggregate vast amounts of premium inventory. With just a click of a mouse on the WO Programmatic TV platform, a buyer can access and aggregate their pick from upwards of $30 billion in TV advertising inventory. Because it is so automated, a buyer can easily discern which inventory is most efficient by using our data or data that they bring to our platform. The system also simplifies all the creative delivery and billing aspects of a transaction.


CW: How dominant do you see television in the traditional sense (the TV set as hardware) five years from now for the consumer?

EM: When we look at IPG’s ad market data five years into the future, television will have a larger footprint than all the combined elements of digital content delivery, including audio and video. From our perspective, I’m not sure it matters what the composition of content consumption will be. It’s our job to help our clients maximize their revenue regardless of how their content reaches consumers. We’re aggressively investing in both digital and linear for the benefit of the consumer and our clients. Regardless of the platform used, we want audiences to continue to be consume our clients’ content and for our customers to have the tools to maximize profits.


CW: Is there any new technology that we may not foresee right now but that could be disruptive to the media space?

EM: There will always be new technologies and behaviors that might be disruptive to traditional forms of business. Consumer habits change surprisingly slowly, though. Take on-demand viewing, for example. While it’s likely that anyone reading this article uses a DVR as their primary method for consuming video, live TV viewing minutes in the US still represent over 90% of total minutes watched. This is a full 15 years after early adopters started to have the ability to time-shift their viewing.


CW: Give me a short example of how WideOrbit works as well as its challenges and its opportunities in the media space.

EM: It’s hard to come up with a single simple example when we cover so much ground. WideOrbit software is the enterprise software that runs a media company. We manage all the processes of ad insertion for clients with varying kinds of business, including NBCUniversal’s owned and operated stations, Comcast SportsNet, Fox Sports Networks, DirecTV’s advertising operations, Entercom Communications, Time Inc’s and USA Today’s web sites, Canal+ and Orange France Mobile Ad operations.


CW: Can you give me some predictions - what will the media landscape look like 5 years from now?



EM: When I started WideOrbit in 1999 with a background in the Internet, it was obvious that the future was going to be a transition from analog linear delivery of content to IP-based delivery. My Silicon Valley pals thought the transition would take about 3-5 years. I thought it was going to take 10-15 years before people were consuming most of their video or audio over connected IP devices like a connected TVs or mobile phones. Now that WideOrbit has been operating for 15 years, I still think we’re 10- 15 years away from seeing the majority of video content delivered to individual IP devices rather than as a traditional linear broadcast stream



The automation of advertising transactions is increasing at rapid clip. A huge portion of digital sold today is via Real Time Bidding, and we’re starting to see that port to Mobile as well.  Digital video is getting there, but is still mostly transacted & targeted weeks in advance. TV does not have RTB yet, though we’re poised to see a dramatic increase in programmatic sales automation.

Finally, there’s been a ton of consolidation the last 4-5 years in the broadcasting sector. I expect it will continue over the next 5-10 years, though the bulk of it is probably behind us.

This article first appeared in www.Mediapost.com
 

Tuesday

Comedy Central Research Discovers Cultural Connection



Chanon Cooke, SVP Strategic Insights and Research for Comedy Central, is responsible for advancing brand, programming, and multi-platform development through research as well as providing key consumer insights to guide creative strategy.  Specifically, her work helps the network understand Millennials.

Cook embarked on some fascinating and ARF award winning research for their series Key & Peele.  She explains, “Three seasons in, Key & Peele still lacked awareness and engagement by African-American and Hispanic viewers who should have been the show’s biggest fans.  We needed to identify how and where prior communication efforts had failed and subsequently informed a customized Multicultural marketing strategy.”


Noted here is that this research makes use of emotional response research based on community panels. This form of research is gaining more attention in the industry where consumer motivations and emotional responses can become part of the fuller analysis of a piece of content.  

I asked Cooke the following questions about her research efforts for Key & Peele:


CW: What research did you conduct for this series?

CC: There were three key research studies which were running concurrently. 

Research Study #1- Understanding Multicultural Millennials: The cornerstone of this research comes from an extensive Multicultural Millennial Collaborative Community of over 300 active online members.  The virtual “salon” convened on a weekly basis for over six months and covered a broad range of topics – from the latest memes making the social rounds to hot button topics like Trayvon Martin and immigration policy.  We also conducted multiple ethnographies, focus groups, expert and academic interviews, content analysis, and secondary research.  This is some of the deepest and richest research Comedy Central has conducted to date.

Research Study #2- Key & Peele Series Deep Dive:  Comedy Central conducted a series of in-depth focus groups around key show and communications elements -- including talent appeal, humor sensibility, show format, and messaging.  We spoke with current Key & Peele viewers and Multicultural Millennials who from a psychographic perspective should be viewers across 3 markets, New York City, Los Angeles, and Cleveland.

Research Study #3- Key & Peele Semiotics Study:  With a topic as complex as race, we knew we needed to combine our consumer insight methodologies with extensive cultural analysis.  We had to understand Key & Peele’s current cultural resonance and identify future opportunities to amplify the franchise’s cultural voice and impact.  We leaned into a semiotic analysis of popular content, and Key & Peele in particular, to help build our narrative through a company called Truth Co.  Our use of cultural analysis combined with consumer insight work enabled us to bring to the surface hidden but essential insights. 


CW: What were the calls to action?

CC: The Key & Peele season four launch would be a radical departure from previous campaigns.  Our goal was cultural resonance, a psychographic defined by common sensibilities and attitudes.  Marketing adjusted the focus from trying to attract African Americans and Hispanics to attracting the psychographic within the demographic: multiculturally aware Millennials who are culturally plugged in and social.

We partnered with brands like WorldStarHipHop, DimeMag, and DatPiff for the first time.  Our YouTube campaign was also nuanced and extensive – in addition to retargeting fans that had previously watched Key & Peele or Comedy Central videos, we built out targeting buckets for our Multicultural psychographic.  Key and Peele continued to amplify their icon status and cool cred with high profile appearances and partnerships like guest editing the Entertainment Weekly comedy issue and hosting a standing room only panel at San Diego Comic-Con.


CW: Did anything surprise you? What were the "aha" moments?

CC: Beyond likes and ratings, perhaps the most significant impact has been a fundamental shift in the internal narrative around the Comedy Central core viewer.  Now when we say “The Comedy Central viewer”, we don’t automatically picture a 24 year old White guy.  The Comedy Central core fan can be Black, White, Hispanic, male or female and we will serve all of them. The only thing we ask of them is to love awesome comedy.