Conference Buddies

How to Sell to Niche Markets Online

How to Market to Baby Boomers:

Panelist: Ali Moiz , COO, Peanut Labs Media, Virtual Currency Specialist

• Virtual currency is a new market, valued at $2 billion
• Baby Boomers are born between 1946 to 1964
• They have the highest income bracket
• Spends more than other age groups, especially in travel
• Fastest growing group of social networks users
• $1.2 billion in custom-sample market in 2008
• Fastest growing section of online gamers
• Only 5% to 15% are monetizing for gamers
• Example: Zombieland movie, finding a good trailer for that movie can generate $2 million more. Tested on baby boomers to find which trailer out of three they liked the best, used that one for the campaign
• Biggest segment of baby boomers make over $50,000 to $125,000 per year
• Commonly played online games for baby boomers: free to play (Yahoo! Games), casual games (Facebook, MySpace), Massively Multiplayer Games (MMO’s), downloadable games, virtual worlds, it’s a $1.5 billion market
• Baby boomer spend on average 7 hours a week playing online games
• Plays eight or more online games at the same time
• Works full time
• 23% are paying for online games
• 24% are buying goods online
• 14% pay for premium content online
• 18% watch ad-supported free streaming (i.e.Hulu)
• CPM’s generated online dollars

How to Market to Teens Online:

Panelist: Daniel Brusilovsky, 16-year-old CEO, Teens & Techs Networks, writes for Tech Crunch, Marketing Manager for Quick (iPhone apps)
Daniel@danielbru.com
www.danielbru.com
Twitter.com/danielbru

• Teens & Techs conference inspires teens to start their own business
• Second Life, a teen community
• Social media advertising: target teens.
• Why teens like Facebook: it’s simple to use, easy to understand, communication with friends (Facebook chat) helps each other with homework.
• Why teens don’t like Twitter: their media content, the open platform creates mistrust
• Why teens don’t like MySpace: too cluttered, but good for bands to upload their audio, too many Ads, it’s old news
• Print advertising is strong in schools because of the school newspaper
• Print Ads work for teens: people will read it, make it interesting
• eCommerce: teens like to buy clothes online, like to use Zappos and Amazon. Use eCommerce to your advantage. Integrate all your social media marketing to eCommerce
• If something doesn’t work, try something new. Teens are used to changes and are open-minded.

Questions from audience:

1) Why isn’t your school’s newsletter online? Daniel: It is, but it sucks
2) What is the return rate from teens buying online? Daniel: Zappos is a great example: easy returns, good customer service
3) What is the next big thing after Facebook? Daniel: It’s too soon to tell, but keep a look out for mobile, especially in social networking.
4) Where else are the baby boomers? Ali: They are also big on eCommerce, they search for news a lot, and they like informational sites
5) How can you sell to teens online when they don’t have credit cards? Daniel: get a link to your parents’ credit card, get PayPal. Ali: try Bill My Parents website
6) What is your favorite fan page on Facebook? Daniel: None, Ali: Just trying to avoid my mom on Facebook
7) Do kids influence their parents’ eCommerce activities? Ali: eCommerce will expand through friends’ recommendation. Daniel: Apple has a great example, influences kids to beg their parents for their products.
8) What’s the market for smartphone apps? Ali: Digital Chocolate, a company that is betting their market on smartphones, gaming is becoming huge on phones. Daniel: a flip phone is uncommon, most devices have internet access now
9) What’s a good online search for baby boomers’ buying trends without paying too much? Ali: check blogs, check Think Equity, a research firm. Compete.com and Quantcast.com
10) If I want to sell SAT study guides, who should I market to? Daniel: to the teens, the teens will want it, event thought the parents are buying it.
11) Are there more stats on baby boomers? Ollie: yes, more women are playing games online than men. (65% to 35%)
12) Is e-mail marketing effective on teens? Daniel: no, teens are not using email anymore.

MODERATOR:
Randall Rothenberg, President and CEO, IAB

PANELISTS:
Neil Ashe, President, CBS Interactive
Jeff Berman, President of Sales and Marketing, MySpace
Rishad Tobaccowala, CEO, Denuo
Carol Kruse, VP, Global Interactive Marketing, The Coca-Cola Company

Coca-Cola (Brand Company):

Involved in social media, mobile, consumer control media

Fox:

Involved in consumer insights, mobile (5 fold increase), MySpace

What consumers are doing

Word of Mouth, Social Media

• Most speak about and heavy users are the most vocal & usually negative
• Last users are most important

Engagement

Behavior shows that people want utility not engagement

Advocates (FANS) vs. Detractors in Social Media

Social Media:

• Keep/Maintain the communication between campaigns
• Communication Marketing/Planning
• Improve Product, Customer Service, Provide Utility (new & useful to community) > Friendship Trust > Ongoing Conversion

Social Media = young & hysterical

• Not collected/sophisticated/well-dressed
• Less campaigns & more ecosystems

Search: direct market (metrics)

Creativity:

• Content, create interest = brand (know who you are)
• New ideas & combinations/integration
• Media is the new creative
• The key is to enhance user experience

The importance of integration between art and science/technology.

Using technology to enable the capturing & allowing what people want to do.

Content is King while Context is Queen: need to go together in order for it to work

Marketing Effectiveness – Improving Accountability and Returns to Impact Business Performance

MODERATOR:
Christopher Marriott, VP, Global Managing Director, Acxiom

PANELISTS:
Chris Caputo, VP, Digital Media Strategy, Optiem, Inc.
Cheryl Kellond, Senior VP, Advertising Business, Choice-stream
Jeff Hirsch, President and CEO, AduienceScience
Geoff Atkinson, Senior VP, Marketing, Overstock.com

Lessons of Direct Marketing

• Consumer insight first. Connect behavior to spend.
• Technology is the gateway to optimization
• Insight without execution … is pointless

73% few dollars spent per hour of target audience consumption Digital vs. TV

A New imperative in Touch Economic Times

• Decreasing number of purchase opportunities has big implications
• Tradiitional retail marketing vehicles – search and newpapers – are at their limits
• Display has all the right components: Reach, frequency, expanding purchase options
• However, until now display has under-delivered is potential

Unlocking the Performance in Online Display

Two Distinct Components

Finding the Right Audience:

• Retargeting is always a smart marketers winning bet

Delivering the Right Message:

• 1:1 messaging with the in-marketing relevance of search that creates an “occasion to purchase” like catalog

Category Specific Ad

Overstock.com

• ChoiceStream RealRelevance Advertising
• Dynamically created display Ad + landing page
• Personalize products & offers
• Purchase paterns (what they bought, what they did)
• Serve up on landing page the products the user had added to basket but didn’t purchase/abondoned, and also serve up related items below that

Conversions per Thousands of Impression (Over 3x Advertising Lift)
Revenue per Thousand Impressions   (3x-5x Lift)

———

American Greetings.com

$5M to $10M visitors a month

Challenges

• Acquisition Campaign
• Growing Competition
• Complex Traffic Patterns
• Huge Product Variety

Need: Better visibility into profit drivers

Attribution Management funnel

Awareness -> conisderation -> favorability  -> purchase  ->  loyalty
ecard -> funny ecards -> american greetings -> $$$

Data Mart:

• Media (Paid Search, Display banners, Shopping engines)
• Behavior (Visits, Engagement, Conversion)
• History (Products, COGS, Profit)

Actions

• Identified – Introducers, Influencers, Closers
• Re-allocated budget
• Eliminated losers
• Fill top of the funnels
• Feeding eagles, starting the pigeons

Make smart decision on the data

CPC = 13% increase
Spend = 32% increase
Profit = 28% increase  (due to better optimization)

Example – Moen.com

Situation:

• Cut Tradeshow Budget
• New Product Launch
• Increased Competition
• Diverse Audience

Need: Refresh CRMS data
And get new product info out there

Guerilla Tactics:

• Timed email communicaions post show
• Announced new products launch
• Masked CRM refresh with sweepstakes
• Added urgency to complete the form

Opens = 7% increase
Response = 43% increase
Within 48 hours = 1/2 of audience responded already

Takeaways

• True Analytics not Google Anlytics (only 1/3 of puzzle)
• Pay attention to consumer behavior
• Hard times requires creativity

Misc:

Relevancy creates Engagement & Trust

————–

Sketchers Case study

Targets Prospects across AudienceScience Targeted Marketplace

Objective

• Increase sales
• Masximize return on Ad spend
• Drive new and qualified visitors

For Sketchers.com only 1% of revenue comes from online, but focusing more efforts in that area.

Revenue Sources:

15% thru stores 15% Int’l, 1% online, > %70 from retail stores/partners

Solution:

Behavioral and demographic targeting from AudienceScience and other ad networks helped Skechers identify qualified prospects on their site, gauge their interest and intent, and then group these users into segments that they could serve re-targeting ads to

3% conversion rate on website

Optimized and tested from 20 Ad Networks to 12
Utilizing retargeting

Soho Labs (bought other brands)
Tag the user (women section, kids products, left item in cart, etc.) (serve Ad based on shoes left in cart,

ROAS = Return on Advertising Spend = (Revenue/Cost/Cost)

Return on Ad spend was 617% over the course of the campaign
The campign was optimized on a weekly basis to ensure success

• Analyzed impression volume versus clickthrough rate to ensure qualified traffic through the Run of Networkr= impressions, and conversion rate versus eCPA for retargeted Skechers visitors (90% retargeting vs. 10% RON)
• Skechers was able to continually revife its creative for maximum results

Lower performers ask for better rates

Run 3 to 5 creatives to test

Not opinion or bias, optimize by performance

Q2 2009:

• Create Storyboard across multiple Ad netowrks, allowing fo more personalize messages to specific customers
• Determine last-touch attribution for Ad buys and removal duplicate order issue
• Allows for aggregate learning across all networks in order to help optimize campaigns and Ad sizes
• Reduces strain on internal IT by utilizing universal tags that marketing team controls

————–

Name changed:
Banner Ads = Display Ads (because video, buy in ads, etc.)

Sketchers:
Search vs. Display = less than 20% spent on Display vs. Search
More money from retargeting display Ads than search

Data drives decisions

Fishing where your fish are

Search (SEO, PPC) is the best acquisition channel. It facilitates demand, but doesn’t generate demand

MODERATOR:
Michael Dunn, CEO and Chairman, Prophet

PANELISTS:
Margaret Beck, VP, Brand Direct Marketing, Williams-Sonoma, Inc.
Kelley Quain Troia, Senior Director, Marketing Operations, Wal-Mart
Aseem Chandra, Senior VP, Product Marketing, Omniture

1. Measurability give insights for strategy: creative & execution choices
2. Transparency
3. Predictability

Accountable Marketing Investment Levers:

1. Strategy
2. Content
3. Marketing Vehicles
4. Investment
5. In-Market Execution
6. Fixed Cost Management

5 Common Barriers:

1. Poor Data
2. Poor Time Investment (Not Priority)
3. Poor Analytics Understanding
4. Capability Constrained
5. Process/Goverence Constrained (lack of communications between departments)

Holistic Path

Decision Making & Measurement:

Great Strategy > Great Creativity > Great Execution > Great Analytics

Cross Channel Measurability

Marketing Mix Modeling

The need to understand Statistical Analysis + Historical Data:

1. What are you measuring?
2. Why are you measuring?
3. What is considered successful?

Variation is key for testing.

Measurability = Process Oriented

Around 32 different channels:

• print
• TV
• radio
• twitter
• video
• blog
• many online channels

Brand equity = long term view (not immediate results), loyalty

Structured experimentation to find new approaches/audience/opportunities