Tuesday, June 16, 2015

It's About Share of Voice, Not Conversions

During college I started a job for a small Internet marketing company called Webmix Marketing. On my first day the owner pulled me aside and taught me the importance of a magic term called ROI. He explained that we could build the best online advertising campaign, send the funniest tweets, or shoot the sexiest YouTube video, but if we did not show the client a positive ROI then we would lose the client. So is there life is an Internet marketer. One of the best articles I wrote while at Webmix Marketing was titled The Geek and His Girl, The Importance of ROI.

Fast forward two years and I was again running AdWords campaigns for companies. This time, however, instead of the Nashville Pest Control company or a small Costa Rican resort I was working for large Fortune 100 brands. After one successful flight I jumped on the phone with an agency's media buyer. Excited to show the success of the campaign that I built and ran I started spouting off metrics like click-through-rate, bounce rate, and cost-per-conversation. The media buyer stopped me and she said, "I don't care about cost-per-conversion." I was stunned. How could she not care? My years of training on the importance of measuring ROI were ready to argue back and prove that this woman was crazy. But I listened, and the media buyer finished her sentence, "I don't care about cost-per-conversion, I care about share of voice."

Digital advertising began as a results oriented direct response advertiser's dream. It was the classifieds with the ability to measure anything. But as digital advertising grows up, so does the focus on ROI. This is not to say it loses importance, but rather the entire investment funnel must be considered. And for branding campaigns that means building a pipeline of awareness and consideration with campaigns focused on metrics like share of voice.

Thursday, June 11, 2015

What if Driving Were Free

After attending thea recent auto conference financial services company Raymond Jones issued a research note stating that Apple and Google were now officially competitors to the auto industry. 

With CarPlay and Android Auto installed in a vehicle, auto companies have concluded that they eliminate differentiation in the user experience. This terrifies OEM's and manufacturers alike, because without that differentiation currently high markups are difficult to justify.

The thought of Apple, Google, or any other tech company going it alone to develop a car may seem surprising but is inevitable. Google recently moved from converting existing vehicles into self driving cars to creating an entirely new vehicle type with no steering wheel or rearview mirror. Apple may not be far behind with a similar creation.

So how would the world look with tech companies running the auto industry. Here are a few points that I would expect.
  • Commuters will not own vehicles. Companies will have fleets that drive around and move people as requested. Think a glorified Uber only no driver and the scale to make it more affordable.
  • Commute differentiation will matter. Do you want your vehicle to have a bed so that you can snag a few more minutes of sleep? What about an exercise bike? A workstation?
  • Commune commutes will lead to self driving buses or other shared ride options.
  • With transportation a revenue driver for tech companies look for immediate advancements in fuel.
  • As a current test in Las Vegas proves there is interest in replacing Semi truck drivers, so look for a very impactful cross country transport revolution.
  • And finally, what if driving were free. Is there really that much of a difference between cars on the highway and information on the information superhighway? I mean, besides absolutely eliminating accidents and unnecessary driving time - what if the transportation of America became a macrocosm of the world wide web, funded by advertising. Possible? Riders could be targeted based on their interests, destinations, and more.


Tuesday, June 2, 2015

Netflix With Ads

Uh oh ... It has finally happened. As a trickle of the billions of dollars allocated to TV advertising has been shifting over to digital mediums Netflix has become a symbol for the cord cutting movement. Industry disrupting statements like, '1.4M US Homes Cancelled Cable in 2013' and 'Half of All TV is Now Streamed Online' have multiplied to become an powerful case against a TV-only media plan. And now ... the incentive for Netflix to act may have reached its tipping point.

According to Cord Cutters News Netflix has started testing pre-roll ads. Right now these ads only promote other Netflix shows, but as Vice channel Motherboard states, Netflix could out-target traditional TV networks and make a handsome profit. Netflix executives, however, have repeatedly stuck by their guns promising no 3rd party ads on the growing streaming service.

The History of Google Chrome

It looked like Microsoft was going to do it again ... complete, total, absolute market domination. Yes there were a few upstarts like Mozilla tossing a web browser into the ring, but Microsoft's Internet Explorer owned the market.

Jump back to 1988 when a young Danish man by the name of Lars Bak graduated with an MS degree in Computer Science from Denmark's Aarhus University. Lars quickly became a JavaScript prodigy.

Sun Microsystems picked up Lars and put him to work on virtual machines, or coded programs within a larger system. After several years in Sunny Cupertino, California Lars Bak was anxious to return to his home country of Denmark. He left Sun to start his own company OOVM.

Impressed by his team's work, Microsoft decided to bring Lars on. They made Lars a fabulous offer, which Lars summarily refused. He was more interested in growing his own projects and staying close to his daughters who were studying in Denmark.

About the same time Google also made a move pick up Lars Bak. Again the lure of a great paycheck was insufficient incentive. Google then made a counter offer that was unprecedented in the corporate world. Google offered to build an office in Denmark for Lars and his entire team if he world bring his projects to Google. Lars readily accepted.

Fast forward a few months and the world saw the release of the now dominant Google Chrome, all thanks to Lars Bak and his team.

Thursday, May 28, 2015

Do People Hate Ads?

It's an honest question, do people really hate ads? We have all complained about the few seconds of annoying gibberish we have to sit through before a YouTube video or right at the climax of our favorite show. In fact there is a popular browser extension called AdBlock that apparently has 300 million downloads. And what does this amazing popular extension do? It hides ads across the web. But do we really hate ads?

There is another extension that is also gaining popularity called The Ad Filter that says a lot about our attitude towards advertisements. This browser extension does not block ads, rather it replaces crummy 'used car salesman' like ads with D&AD award winning ads. So now instead of an obnoxious talking head users get to experience the remarkable Volvo Semi ad.

So do we really hate ads, or do we hate bad advertising?

Wednesday, May 27, 2015

The Power of the Digital Advertising World

Advertising has come a long way in the last 20 years. It used to be that companies would buy ad space religiously in newspapers, magazines, and in one of a few select TV channels. Now newspapers are becoming less and less relevant (when was the last time you picked one up and turned past the front page), corporations are rethinking their magazine print plans, and TV has splintered into thousands of channels that now compete with Netflix, YouTube, and Facebook.

The rise of digital advertising has in some ways leveled the playing field for small businesses, with ad networks like Facebook, Google, and AdMob giving everyone un-gated access to billions of Internet users. One of the biggest innovations of digital advertising is the increased ability to show ads to the right people at the right time. Below are some of digital advertising's most popular targeting tactics that blow old time traditional advertising out of the water. They are written from a Google point of view because, well, I work at Google, but they are universally applicable across the digital world.

Keyword Targeting
Google's tried and true targeting option for ads that appear in Google search results is called keyword targeting. Keyword targeting lets you show ads to people who look up a specific word or phrase on Google. Imagine you sell boat cleaner, and you want to get people to buy bottles of cleaner off your new website. You can target keywords like 'new boat cleaner' or 'the best boat cleaner.' This puts your ads right in front of someone who is actually searching for boat cleaner on Google. If this does not put you in front of enough customers then you can expand your keyword targeting to less direct keywords like 'get a stain off my boat' or 'brand new boat.' Targeting ads with keyword targeting brings the best and most measurable ROI available in advertising.

Demographic Targeting
Ads shown across different websites are not the same for every person. Companies can choose to have their ads seen by different demographics including age, gender, and parental status. Demographic targeting is often overlaid over some other targeting option. For example a drug company may want to show ads on WebMD type sites but only to men over 55.

Keyword Contextual Targeting
When a company wants to show ads to people who are not on Google search it can instead contextually target keywords. Keyword contextual targeting finds sites with certain keywords on the page and places ads on those sites. For example a Celtic bagpipe seller can select keywords like 'Celtic' and 'bagpipes' and put ads on those sites. This saves the bagpipe seller the trouble of coming up with a list of sites that are related to bagpipes.

Placement Targeting
Let's say, however, that the bagpipe seller has a few specific sites it wants to target. Well then the seller can select those specific websites and put ads on them.

Topic Targeting
Similar to Keyword Contextual Targeting, Topic Targeting allows a company to show ads on websites that fall under a specific category of sites. Our beloved bagpipe maker could target sites related to folk music.

Affinity Segments
Rather than thinking about putting ads in the right places, many companies have begun to think more and more about showing ads to the right audience, regardless of where that as appears. Let's say that our bagpipe maker knows that it's audience LOVES folk music. He or she may prefer to show bagpipe ads to folk music lovers across all websites. So what if the ad shows up on a car site, the user may be interested.

Remarketing (Retargeting)
Often a company's most valuable leads are those who have already had sooner interaction with the company. Remarketing is a tool that puts a tracker (cookie) on a user who visits a site. The advertiser can then show ads to this user. This can also be used to upsell or get additional purchases from a past customer. Our bagpipe seller may choose to sell sheet music via remarketing to customers who just bought a new bagpipe.

Thursday, August 15, 2013

Google Chromecast

After using the new Google Chromecast for the last week I thought I would share a few thoughts.  The Chromecast is a thumb drive like device that plugs into a TV’s HDMI slot.  Once plugged in you can transmit videos or music from your smartphone, tablet, or PC to your TV.

So what is the big deal?  I already have a ROKU box, Apple TV, or an HDMI cable that connects my computer to my TV.  Why do I care about Chromecast?

The BIG DEAL is this:
Size
I love the Chromecast’s thumb drive shape and size.  You can fit the device in your pocket and take it with you on business trips, vacations, or to show off to your neighbor.  Plus you don’t have a box sitting on, by, or even under your TV Chromecast is no larger than your average thumb-drive.

Compatibility
Chromecast is not limited to working with just one computer or phone.  No, you can share this device across an infinite number of devices.  And that is on both the sharing and the receiving end.  You can take this device to a hotel and plug it into the room’s TV and avoid the onslaught of local TV crap.  You can take Chromecast to your friends place, your girlfriend’s condo, your dad’s retirement home, or your kid’s Sunday School class.  What I am trying to say is that you can take this device anywhere and run it off any smartphone, tablet, or PC.

Price
The price is right for the Chromecast.  The device is less expensive than most HDMI cables, making it a no-brainer for someone simply looking to connect their computer to their TV.  When you then consider the cost of similar Internet TV boxes like Apple TV, you save a lot of money going with Chromecast.

Now not everything has been peaches and cream with Chromecast.  I being the Googley person that I am was hoping to have this device cure cancer and bring my dog back from her backyard grave.  It turns out that Chromecast is not really the cure-all I had hoped.

What I Do Not Like
Wall Plug Dependent
I wish Chromecast ran off a battery.  Why shackle such a powerfully small device with a wall plugin.  The decision seems akin to a creating a cellphone that must be plugged into the wall to turn on.  

Cloud Only
It is time to transfer your movies to the cloud, because Google’s Chromecast will only allow you to play content that is on the online (small movie pun compliments of The Internship).  This means that you will have to find another way to play all of those movies you downloaded off Torrent last year.


Wi-Fi Required
The biggest con of Chromecast is that it requires Wi-Fi to function.  Chromecast creates a secondary Wi-Fi network after tapping into your current Wi-Fi network.  It then receives data through this new network.  This means that you cannot use Chromecast if there is no Wi-Fi network to join.


So what does Chromecast mean for Google?  Is this Google’s initiation into a low-cost cost small electronic device market?  At only $35 Chromecast is perfectly targeted to capture the 18-30 tech savvy demographic that keeps Google in business.   Will we be seeing a Chromecast 2.0 soon?  What does this mean for cable?  Are we one step closer to slaying the major networks and living our lives on Netflix and YouTube?