Do Less Data Plans Change Mobile Strategy?

July 10, 2009 – 12:07 pm
Bryce MarshallI had a conversation the other day with a client who read the recent eMarketer article assessing the economic downturn's impact on household communications spending - specifically data, voice, and video. Citing a survey by Research Analytics, eMarketer reports, "nearly one-half of respondents (48%) said they would drop the mobile data services completely if forced to scale back, while a further 17% would move to a lower-tier plan to save money."

The survey further implies that residential broadband is seen as the “must have” service for consumers, while mobile data plans plays the role of a “nice to have.” At first glance, this makes sense. Emerging technologies need time to be cemented in the lives of the everyday consumer. The most recently adopted is the first to get cut back.

The resulting discussion with the client focused on their mobile marketing strategy… and whether mobile programs already in-place, and projects currently underway, were ripe for a re-think. Specifically, mobile-friendly web development and potentially iPhone and Blackberry apps are called into question.

There are two things to consider if you are also re-thinking your mobile marketing strategy, or you are considering shelving current plans and projects in light of the economic climate.

First, the survey asks decision-makers which services they would cut, if forced to scale back. This is not an indication of action, simply perception. Consider that the consumers who would cut mobile data plans are likely the lightest data users and infrequent browsers of news, sports, social networking, or M-Commerce. Will this change have a significant impact on overall site traffic from mobile browsers across the Web? For my client, web analytics show the number of mobile browser visits continues to grow each month, both in raw volume and percentage of all traffic. What do the analytics on your sites indicate?

Second, even if there is a universal downturn in mobile data plans (and by implication mobile browsing), it won’t last long. More and more consumers are trading in their simple phones for smart phones, iPhones, and PDAs every day. Growth in smartphone use will correlate to more mobile browsing. Plus, the actual mobile browser is getting better and delivering positive user experiences every day. Generational gaps in mobile adoption are closing, and the carriers’ mobile data plans will get more competitive. So, we have to look at the prevailing economic climate as a small factor within a larger established macro-trend in consumer communications preference and media consumption. The rising tide will lift all ships.

Do not be fooled into thinking that it’s possible to put your mobile marketing plans on ice with no consequence. In 12 months, when mobile browsing is growing at the fastest pace ever (you heard it here), will your brand be ready with tested and proven mobile applications and marketing programs? Or, will you be playing catch up with consumer preferences?

By Bryce Marshall | Posted in Mobile Marketing, Online Channel Trends | Tags: , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Analyzing Behavioral Targeting Best Practices

July 8, 2009 – 12:28 pm
Josh GordonOn Monday I wrote about the need for the discourse around behavioral targeting technology, in Congress and elsewhere, to be careful not to use a broad brush when determining the best practices for the technology. Not all forms of behavioral targeting are the same (network versus onsite); therefore the same rules should not govern all types of behavioral targeting.

In case you missed them, here are the proposed Seven Best Practices for Behavioral Targeting that has Congress and the Federal Trade Commission abuzz with cautious praise:

  • The Education Principle
  • The Transparency Principle
  • The Consumer Control Principle
  • The Data Security Principle
  • The Material Changes Principle
  • The Sensitive Data Principle
  • The Accountability Principle

The ongoing search for the fine line to walk between privacy and technology is the reason for the introduction of these initial guidelines. There are some excellent steps in here that have the potential to do a great deal for advancing direct digital marketing and behavioral targeting. However, the execution must match the ambition. Detail is necessary when so many lawmakers are poking about!

The first three are self-explanatory and all very important. While the Education and Transparency Principles are nice, it’s the Consumer Control Principle that is essential to provide the others with the support they need to be valid.

The principles also state that marketers will place an opt-out button on each behaviorally targeted ad, a process designed to make opting out very easy for consumers. It is an interesting idea, but here’s one cautionary note – network behavioral targeting companies must be careful to control the costs of the technology and manage pricing expectations with their customers. The rates network folks can charge will likely increase as opt-outs do. The more narrow a segment becomes, the more valuable it is to reach them effectively. However, if rates start low, they will stay low.

The last principle, Accountability, is, perhaps, the most interesting of all. The Accountability Principle states that violators of the principles are to be reported by other companies to the government, and the government will determine the punishment. While this has been labeled “self-regulation,” the government has tremendous control to levy punishments for violators. Some are arguing that an industry-group should be the ultimate governance and would be more reflective of true self-policing by the industry. It is clear that the Accountability Principle is a concession by the technology companies and is likely the primary reason why the government has received these principles favorably – for now.

By Josh Gordon | Posted in Direct Digital Marketing, Internet Governance, Knotice, The Online Marketing Space, behavioral targeting | Tags: , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

BT's Official Self-Regulation Proposal

July 6, 2009 – 12:07 pm
Josh GordonAfter much speculation, the proposed standards of self-regulation for behavioral targeting have finally been announced. You may remember that I commented on this exact topic at the end of 2008, concluding that however the industry determines it should be regulated, the two different types of behavioral targeting must be treated differently.

DM News' Dianna Dilworth has an excellent recounting of the response from various players in the online marketing space that employ behavioral targeting technologies.

This is a well-organized effort that includes major BT users like Facebook announcing their willingness to adopt these new best practices.

The Seven Best Practices for Behavioral Targeting are as follows:

  • The Education Principle
  • The Transparency Principle
  • The Consumer Control Principle
  • The Data Security Principle
  • The Material Changes Principle
  • The Sensitive Data Principle
  • The Accountability Principle

Regarding the ongoing discourse in Congress about behavioral targeting and its infringement on consumer privacy, the Federal Trade Commission has already responded positively to the proposed self-regulation. Perhaps it is logical to conclude that the contentious nature of the debate within the Capital will simmer now that the industry has taken it upon themselves to be their own watchdog.

While the evolving debate is certainly advancing the industry as a whole, there is a continued failure to distinguish between the two types of behavioral targeting as these privacy best practices are announced. It is reasonable that the first round of standards released should deal with the most prevalent “squeaky wheels;” however, the majority of these principles apply only to network behavioral targeting (affiliates) while onsite targeting is simply lumped in with the holistic definition of “behavioral targeting.” Unless measures are taken to ensure rules are tailored to each specific form of behavioral targeting, onsite targeting – complete with personalization and website message relevance tools that make it so effective – could be subjected to a set of standards that do not apply.

In general, more transparency for the consumer is a valuable, worthwhile goal all marketing should strive toward. More control for shoppers and more accountability for companies – it’s a win-win. But, before we label the entire forest, we must remember that not all trees are alike.

By Josh Gordon | Posted in Best Practices Insight, Internet Governance, behavioral targeting | Tags: , , , , , , , , , , , , , , , , , , , , , , | Comments (1)

Direct Digital Marketing and Slashed Budgets

July 3, 2009 – 11:54 am
Josh GordonWhile mobile marketing continues to be a hot topic of debate around the Lunch Pail, the term direct digital marketing is picking up adoption momentum, too. I mentioned some general trends in both mobile and direct digital marketing in a recent post, but the actual term - direct digital marketing - is starting to catch on in the online marketer's vernacular ever since we originally defined it here back in January.

At this writing, no less than five dictionaries have published the definition. As a refresher, here is what direct digital marketing is:

“Direct digital marketing is digital marketing method that is addressable—meaning you can identify the recipient of the marketing message being distributed. Traditional direct marketing is achieved using a customer’s postal address and sending physical paper mail, such as a flyer or brochure. With the evolution of direct marketing to direct digital marketing, addressability comes in a variety of digital forms including an email address, a Web browser cookie, or a mobile phone number.”

You can read the definition online, too. Check out Wordie.org, Webopedia, Internet Marketing Dictionary, Definition-of.com, and Quirk’s Marketing Research Dictionary (login required).

On a day where Forrester Research’s Lisa Bradner published a report (subscription required) citing deep cuts in marketing budgets across the board, the time for marketers to be effective and efficient has never been more important. As we head into a relaxing holiday with picnics, fun, and family, remember when we return to work on Monday that we – the entire group of direct digital marketers – do what we can to advance our industry. Innovation is soaring right now as software companies strive to provide cost-effective and sophisticated tools that satisfy the growing needs of marketers, even as their budgets shrink. By being smart solution buyers, the entire industry benefits.

Have a safe and happy Fourth of July, everyone.

By Josh Gordon | Posted in Direct Digital Marketing, Mobile Marketing | Tags: , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Secrets of the Smart Phone Industry

July 1, 2009 – 12:00 pm
Dutch HollisIf you are a casual observer of smart phone industry news, you may believe that the iPhone is the most popular model on the market simply based on the media coverage it gets. There are a couple reasons the iPhone continues to get a lot of press - interface innovations, iTunes apps, and the ability to pour a fake beer out for your homies with the integrated accelerometer. Lately, the iPhone is hot - literally. But, by no means does it own the smart phone market.

That honor goes to Research In Motion (RIM) and the ubiquitous Blackberry. According to IDC’s Mobile Phone Tracker the Blackberry represents over 55% of the smart phone market, while the iPhone’s share is 19.5% as of the first quarter of 2009. Despite its business-based reputation, RIM claims that half of all Blackberry users are now consumer users.

When looking at smart phone sales by model, the Blackberry Curve is still on top with the iPhone following a close second. The Blackberry Storm and Pearl followed by the T-Mobile G1 (based on Google’s Android OS) round out the top five in that order.

These numbers are changing as I write thanks to the recent release of the iPhone 3Gs, which sold over 1 million units within the first three days of its release. The Palm Pre has sold roughly 300,000 units (well beyond expectations). These sales figures reinforce the competitive nature of the industry as innovations and new entrants continue to drive the market.

If we take one step back from the mountain we may see it as a molehill, compared to the potential market out there. Smart phone penetration in the mobile market is estimated at 19% in the U.S. and 11% globally. That means 81% of mobile phone users do not own any of the smart phones mentioned. Additionally, we know that most consumers still use their phone primarily for voice and secondarily for texting (SMS).

So, when I hear a marketer get excited about building an iPhone app – or one for the Blackberry or Palm Pre for that matter – I really do understand the excitement. I say let’s do it. But, nearly 100% of the mobile market can interact with your SMS campaign in a meaningful way and at a meaningful time. Apps for the iPhone are great, but SMS has a better reach.

By Dutch Hollis | Posted in Mobile Marketing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Data Is the Heart of Direct Digital Marketing

June 29, 2009 – 12:08 pm
Josh GordonDestination CRM editorial assistant and writer Lauren McKay recently published a fascinating piece on “The State of Data” in direct digital marketing. She recaps a recent research study conducted by Experian QAS (the part of Experian that verifies addresses). According to the study, data care is not perceived as a vitally important part of the day-to-day operations of businesses. There are some surprising findings in this study.

First, 55 percent of organizations stated that not only did they not have a viable data strategy in place, they weren’t even aware of one at all. Obviously, it is a substantial missed opportunity for any business to fail in having an operational data strategy.

The big data point that compelled me was that one out of every four organizations is unable to correctly identify both its best-selling products and its best customers. These data points should be the easiest to identify and build campaigns around.

With a variety of direct digital marketing tools readily available in the marketplace for campaign execution and reporting, it’s extremely important to not lose focus of the heart of any modern campaign – the data. It’s the core, the element of a marketing structure that fuels every other operation. While many great tools exist for executing campaigns, and there is no shortage of shops to get good creative, the data is still the most elemental piece.

That revelation is consistent with a general shift in the way direct digital marketing is executed. The emphasis used to be on customer acquisition at all costs, and now many sophisticated marketers have smartly shifted to a more personalized and relevant approach bent on customer retention. However, it is impossible to successfully execute relevance without having a data strategy in place first. And a strategy for getting customer data is no longer enough. Relevance happens when data is maintained and, as a result, accurate and up-to-date. In an uncertain economy a retention focus is good, and properly maintained data is the key.

By Josh Gordon | Posted in Best Practices Insight, Direct Digital Marketing | Tags: , , , , , , , , , , , , , , , , , , | Leave a Comment

Mobile Marketing and Direct Digital Marketing Trends

June 26, 2009 – 12:01 pm
Josh GordonI hope regular readers know that we diligently cover all things direct digital marketing here at the Lunch Pail. Since we cover the primary pillars - email marketing, mobile marketing, and onsite targeting - we have a pretty good gauge of what the most popular topics are, and what trends may be emerging in the industry.

Lately, many of our mobile marketing posts are getting an increased level of traffic. We did recently provide a great deal of information about mobile marketing, and that could have contributed to the increased traffic, but I don’t think it’s the only reason. My sense is that many marketers are still trying to unlock the promise of mobile marketing and find ways to leverage the channel to solve individual business needs. I hope we continue to be a good resource for those seeking information about mobile marketing.

With that in mind, I wanted to spend a moment today on an often overlooked, but vitally important aspect of mobile marketing – data. One of the initial challenges many would-be mobile marketers face is gathering enough usable data to make mobile a viable channel strategy. There is good news on this front, as a direct digital marketing strategy provides a unique way to leverage data from any channel and any source – including behavioral data – to help build the mobile marketing database more quickly. The component that makes this possible is called Universal Profile Management.

Once the data is collected it’s important to have a way to properly segment it. Segmentation strategies should not be limited by the mobile marketing software. In other words, the traditional marketing segments we use – geographic and demographic, for example – must be expanded to include for specific, micro-targeted segments like “website visitors who have opted in to the mobile offer program, are also signed up for email, and have opened the last email which contained a 20% off coupon that is set to expire in two days but has not yet been redeemed.” Universal Profile Management is an ideal solution because it addresses each of those needs – collection and storage of the data and simple multi-channel segmentation opportunities.

You can read more about the data aspects of mobile marketing in today’s Mobile Marketer column.

What kinds of hurdles have you encountered in trying to get mobile marketing off the ground in your company?

By Josh Gordon | Posted in Best Practices Insight, Direct Digital Marketing, Mobile Marketing | Tags: , , , , , , , , , , , , , , , , , , , , , | Comments (1)

Communication in Single vs. Multiple Vendor Projects

June 24, 2009 – 11:58 am
Project management relationships can easily take on a different dynamic depending on the project requirements and the client’s need. Clear communicating is crucial to any successful project, especially complex projects that use an agile approach. The more resources that are involved in a project makes clear communication more important, and, at times, more difficult.

When a technical project manager is dealing 1-on-1 with their client they already know the client’s line of business, the usual players involved, and any potential obstacles such as guidelines, time zone differences, and the status of other ongoing projects that must be balanced. When another party – or even multiple parties – is added to the project mix it increases the complexity and makes successful project delivery more challenging.

Acknowledging that each vendor invited to the table has something important to share and the skills to back their ideas is important from the start. Each vendor must have a good relationship with the project driver and share common goals to make both the client and project succeed. Extra effort is needed in multiple vendor environments. It is important to understand any new partner’s relationship with the client, how they usually work together, get to know the new staff involved, and then adjust for the possibility of added time zone differences or even a language barrier.

Success with a multiple vendor project is accomplished easily by providing technical specifications that the client project driver signs off on at the beginning. A project driver must clearly define vendor roles, responsibilities and deadlines. Then the project manager must manage expectations among the different teams, conduct regular meetings and provide communication strings, and build a positive working relationship.

The project manager must work hard on the stability of the project while maintaining the working relationships of all the parties involved. It’s important for the project manager to communicate often with the client, the other vendor(s), and the development teams as problems arise, objectives change, new information arrives, and/or when goals are met. Everyone needs to stay on the same page.

Communication, collaboration, and a shared goal of delivering a strong project on time should certainly outweigh the challenges, and can actually be a rewarding and exciting experience.

By Scott Cooper | Posted in Technical Project Management | Tags: , , , , , , , , , , , , , | Comments (1)

Direct Digital Marketing Gains Momentum

June 23, 2009 – 10:42 am
Josh GordonAs our most loyal readers know, our mission is to provide thoughtful, interesting information and commentary on the online marketing/direct digital marketing space from the perspective of a solution provider. Good content… more than just tips and tricks. This can be tricky because we maintain our belief that sharing knowledge and information (without the in-your-face selling approach you get from pretty much every other “business” blog out there) is extremely important.

It’s interesting to note that the industry term “direct digital marketing” is really gaining momentum. It started several weeks ago when Wise Marketer’s Pete Clark became enamored with the concept and asked our CEO, Brian Deagan, to contribute some thoughts he placed into a very nice article. Last week, Webopedia picked up on the idea defining it in their encyclopedia of online marketing terms as:

A digital marketing method that is addressable – meaning you can identify the recipient of the marketing message being distributed. Traditional direct marketing is achieved using a customer’s postal address and sending physical paper mail, such as a flyer or brochure. With the evolution of direct marketing to direct digital marketing, addressability comes in a variety of digital forms including an email address, a Web browser cookie, or a mobile phone number.

Even more recently, Adotas published an article that really lays out the essence of direct digital marketing. It’s a familiar term with a very specific definition. If you haven’t already seen the article, I highly recommend it.

As the term continues to gain momentum, the marketplace will no doubt see the value of each pillar of direct digital marketing, and what it means when they work together. Email marketing is the most venerable pillar that continues to plod along, innovating at a steady pace. Next is onsite targeting, an idea gaining momentum because of its simplicity and the easy ability to engage consumers without much heavy lifting on the part of the marketer or IT. Last is mobile marketing, the most interesting element of direct digital marketing because of all of the potential that still remains fettered.

While those are the basic foundational elements of direct digital marketing, they need the support of a centralized database to really hit their stride. Managing data profiles in one place not only makes direct digital marketing easy, it allows for completely unique segments that provide new and different perspectives on customers while allowing marketers to engage in more effective and meaningful ways. If you’re curious about that idea, check out this screencast for more details.

What are your feelings on direct digital marketing? How do you use direct digital marketing to make a positive impact with your customers – and your bottom line?

By Josh Gordon | Posted in Direct Digital Marketing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Project Testing - Measure Twice, Cut Once

June 22, 2009 – 11:58 am
Quality assurance and testing for marketing-driven technical projects is something that must be taken seriously. Since most marketing-driven technical projects are on tight deadlines, it is important to test as early and often as possible. The extra testing, and the assurance that comes with it, is made possible by an agile programming process.

Many marketing-driven projects do not have a thorough, rigid project plan. As a result, incremental testing is necessary – a method that requires extreme attention to detail and an emphasis on delivering a quality user experience while ensuring the security of the backend code.

When testing on a project’s initial phase is complete, the project is ready for review by the customer marketing group. Because incremental testing has occurred throughout the entire process, errors are minimal and only a few small items require tweaking.

Here’s a good rule that is always helpful: Some of the people doing the final testing should not be familiar with the project, the code, and the user experience prior to pushing the project up to the production environment. Having fresh eyes available for testing gives the development team a new perspective and assists in finding potential mistakes that others, who are more deeply involved with the granular details of a project, may overlook.

Following these, and other guidelines too numerous to mention in this post, helps to deliver a quality product that contains stable, bug free code. While testing is important to ensure the stability of the code, it is also crucial for creating a positive user experience. An agile development process creates the right conditions for incremental testing, sound code, and ultimately a positive user experience after the project goes live.

By Scott Cooper | Posted in Meet The Developers, Technical Project Management | Tags: , , , , , , , , , , , | Leave a Comment