EMarketer CMO Interview Roundup

April 2015

CMOs must work ceaselessly to keep up with trends in the digital and mobile marketing ecosystems. From mobile apps to the marketing technology stack, early adopters and digital laggards alike are evolving along with the consumer media landscape. eMarketer has curated this Roundup of interviews with CMOs at brands, publishers and more to collect insights about the challenges and opportunities on marketers horizons today.

CMO INTERVIEW ROUNDUP

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CMO INTERVIEW ROUNDUP

Overview

Whether brands were early or late digital adopters, CMOs must work ceaselessly to keep up with trends in the space. This has never been truer than now, with smartphones in the hands of more consumers than ever. Marketers must be ready to serve engaging, seamless content to users across devices and locations, at each stage of the purchase funnel.

Retailers like Neiman Marcus are taking digital offerings to the next level with visual search, the latest way merchants hope they will be able to assist shoppers in finding new products. Quick-service restaurants like Arbys are looking to mobile to reduce the amount of time their customers spend in the drive-thru.

Other CMOs, like at Papa Johns, are focused on loyalty programs, where they hope mobile can bring new life to points programs and personalized offers. Some are looking first to apps, which may be more conversion-friendly than mobile sites. At AOL, video is seen as the future of display advertising, along with programmatic buying options.

All these marketers have two things in common. First, they share TD Bank CMO Vinoo Vijays concern that reaching a target audience with a strong, positive branding experience wherever that target wants the experience is critical to successful marketing. And second, they recognize that technology and data is going to get them to the next level, like Dun & Bradstreet CMO Rishi Dave.

But that technology will have to bring together components from across the digital and traditional spectrum to add up to effective marketing. The interviews gathered for this Roundup give a taste of the wide variety of problems, and opportunities, todays CMOs see in the digital space.


Dun & Bradstreet CMO Sees Marketing Technology as Integral Part of Go-to-Market Execution

Rishi Dave

CMO

Dun & Bradstreet

A growing number of marketing executives are harnessing the power of technology to drive better business results. Rishi Dave, CMO of business information services provider Dun & Bradstreet, is well acquainted with using marketing technology as part of his strategy. Dave spoke with eMarketers Bryan Yeager about his perspectives and approach.

eMarketer: How has the role of marketing technology evolved at Dun & Bradstreet over the past few years?

Rishi Dave: Marketing technology and the marketing stack is the way we deliver our go-to-market strategy.

Our strategy consists of three main pillars: understanding and driving our brand, taking that brand and coming up with a go-to-market strategy thats specific to our company, and executing that across channels to the right customers with the right data.

The marketing technology stack plays a fundamental role in how we deliver our go-to-market strategy across channels.

eMarketer: What does that marketing stack look like? What tools are you using?

The way modern companies are going to evolve with respect to marketing technology is by not overthinking big technology investments.

Dave: One component is the data and how we manage itthat underlies everything we do. Were using a lot of our own technology to manage the data, and we also look at how we can take that information and make decisions.

We do a lot of things with marketing automation, CRM and web analytics.

eMarketer: How does your group keep up with the rapid evolution of the marketing technology landscape?

Dave: You have to change the culture of marketing to do that. We have become good at managing a portfolio of vendors, as well as becoming more experimental.

As these technologies sit in the cloud, we are able to bring them in, pay a subscription fee and try them out. If they dont work, we switch them out. If a better technology comes along, we switch it out. If it works out, greatwe keep and scale it.

The way modern companies are going to evolve with respect to marketing technology is by not overthinking big technology investments.

eMarketer: As CMO, describe your relationship with your companys CIO and IT department when it comes to marketing technology.

There is no single marketing service or technology provider who provides the complete marketing stack.

Dave: Marketings role is focused on bringing in the right partners, as well as the right cloud-based, software as a service [SaaS] technologies and testing them, using them and incorporating them into the overall go-to-market.

That information has to eventually tie back to the data, to the master data management [MDM] strategy and to the back-office technology. Thats where IT plays a big role. They govern the data, integrate it and manage data privacy and security. When it comes to the applications that you use to execute your marketing and the data that underlies those applications, its a healthy partnership.

eMarketer: Whats your perspective on the concept of the marketing cloud?


Dave: There is no single marketing service or technology provider who provides the complete marketing stack. There is so much innovation happening at different levels of the stack.

Every provider is saying that they are an integrated marketing cloud or they are moving towards an integrated marketing cloud. Thats a challenge. Every provider is strong at whatever place they started from, whether thats CRM, content or analytics. However, as they move into other areas, they are not as strong.

Kimberly-Clark Seeks Data Behavior Mix from Marketing Technology

Mark Phillips

CMO

HotelTonight

HotelTonight is a last-minute hotel booking app for iOS, Android and Windows devices. Mark Phillips, chief marketing officer at HotelTonight, spoke with eMarketers Rimma Kats about the companys app-only approach, as well as the strengths and weaknesses of mobile apps.

eMarketer: Why did HotelTonight decide to take a mobile app approach?

Mark Phillips: Weve always been app-orientated because we believe apps are a more private network. From a functional point of view, apps work better for us.

eMarketer: What are the strengths and weaknesses of mobile apps?

Phillips: There is a lot of friction in trying to persuade somebody to install an app. But the frequency of engagement you get out of an app is higher than what you would get on the mobile web.

An app is a reminder; it becomes a core part of your functionality. [As mobile users] there are a limited amount of apps that we use. On the web, you bookmark sites or remember URLs, and that is a less engaged process.

eMarketer: What forces drive businesses to create a native mobile app?

Phillips: A few years ago everyone created apps because they all thought they needed one. It was the hot thing to do. Theres a bit more awareness and understanding now. When youre on the mobile web, you are jumping from site to site. You want to engage users for a longer period of time, and apps have that advantage.

eMarketer: Do these factors differ by industry sector?

Phillips: I worked at King, where I helped market Candy Crush, and we developed on a website first. We would test there, then on Facebook. If it worked on Facebook, then we would bring the game to mobile.

An app is a reminder; it becomes a core part of your functionality.

The advantage of doing this as a closed-wall app is that you have a structured, safe and private payment system. Its easier to monetize an app than a mobile site. You can do it on Facebook as well, and use the credit system, but the payment construction within an app is stronger.

eMarketer: How are businesses deciding whether to invest in both a mobile site as well as a mobile app? Do most already assume that they need both?

Phillips: It depends on what youre trying to do. If youre trying to engage and you want to pull people in, then the mobile web is great for that. It is harder to track things on the mobile web.

Mobile apps are better for a conversion-type process, whereas the mobile web is better for a discovery-type process. It depends on what your objective is.


Digital Important Ingredient in Papa Johns Marketing Plan

Bob Kraut

Senior Vice President, Global CMO

Papa Johns

eMarketer: What role does digital play for Papa Johns?

Bob Kraut: We were the first to introduce systemwide online delivery back in 2001. Early on, customers liked the control we gave themthey liked access to the whole menu, and they liked the engagement of building the pizza the way they wanted it.

Today, digital plays an important role because its half of our business. Were right around having 50% of our domestic sales coming through digital channels. Its about what customers want and matching that with a better ordering experience, which includes online, mobile and tablet.

eMarketer: What are the differences between mobile and desktop ordering?

Kraut: It has to do with the size of the household. Youve got younger, smaller households using mobile devices, and you have more established householdswith childrenthat are using desktop ordering.

Were right around having 50% of our domestic sales coming through digital channels.

Obviously we like any digital customer, whether its desktop, mobile or tablet, because they tend to be more loyal, and they tend to spend more than people that come in through traditional means.

eMarketer: Mobile is also a big part of your digital strategy. Are you investing in any new technologies?

Kraut: We are, but I cant share that right now. We have a technology innovation team that looks at that, and its certainly on the mind of our management team to take advantage of new technologies. However, we want to make sure that those technologies provide a demonstrable benefit to customers.

Customers want an experience that is enjoyable, fast and easy. If technology enables that, then thats something that well be looking at.

eMarketer: Papa Johns has also ramped up its social game.

Kraut: Thats another growing piece of the business. We hired a social media and social agency, and we consolidated all of our creative so that we have one resource that is creating advertising, digital and mobile.

We believe in having all the talent under one roof, and were much more aggressive in terms of creating content for people thats meaningful and appropriate for the brand. Social is critical, and its important that we grow our footprint, as well as create content to communicate with people who like us across numerous channels. Facebook is significant, but were also on Pinterest, Twitter and Instagram. Well be getting into Vine as well.

eMarketer: Many marketers are turning to Instagram, Vine and Snapchat to launch a product instead of using traditional media. Are you doing that as well?

Kraut: With 3,600 locations, its difficult for us to build scale across that kind of media quickly. For now, no, I dont see us doing that.

Social is critical, and its important that we grow our footprint, as well as create content to communicate with people who like us across numerous channels.

eMarketer: What are Papa Johns digital priorities for the next 12 to 18 months?

Kraut: If you ask many CMOs, they are interested in fulfilling the promise of identifying the right customers, delivering the right messaging at the right time and giving them attractive propositions and hopefully theyll spend more. Thats the notion of what makes a business run.


We have a systemwide digital loyalty program called Papa Rewards. Its been around since 2010, and its been a significant contributor to our ecommerce growth. Most importantly, our customers love it. Were going to take this Rewards database and get to know our customers better.

We have undertaken a big data project, and that will allow us to get much more precise in understanding the differences that distinguish customers needs and wants and allows us to differentiate in terms of what we send, how often we send and what kind of product is right for a particular customer profile.

By doing more in-depth customer segmentation, it will help us and ultimately benefit the business. Itll be better for customers, and itll be better for us and our franchisees.

Arbys Enticing New Generation with We Have the Meats Campaign on Social and Mobile

Rob Lynch

Brand President and Chief Marketing Officer

Arbys Restaurant Group

eMarketer: Arbys recently ran a We Have the Meats campaign. Can you talk more about it and who you were specifically targeting?

Rob Lynch: Arbys is celebrating its 50th anniversary this year and has always been a little bit different than a lot of the QSR [quick service restaurant] competitors. Fifty years ago, Arbys launched a roast beef sandwich at $0.69, when cheeseburgers were $0.15 and its always been about the protein that we serve.

It became very clear that in order for us to achieve our aspirations of becoming a top restaurant destination today, as well as in the future, were going to have to evolve that brand perception and move away from being just about a specific product.

Arbys current customer at that time, and still at this time, is one of the oldest customer bases in the QSR industry. Essentially, Arbys had grown a little bit older and so has its customer base. In order for us to become relevant with todays QSR customer, we saw that we were going to have to evolve our story.

Arbys had grown a little bit older and so has its customer base. In order for us to become relevant with todays QSR customer, we saw that we were going to have to evolve our story.

We didnt need to say, OK, Arbys has always been about great roast beef and great meat. We need to now stand for fried chicken. We just needed to be more Arbys and we needed to create more awareness for the new generation of customers, and thats what we have with this initiative. We dug in and found that meat is still at the core of the American meal.

We have great protein that we found would be relevant and compelling for our target audience. But we hadnt clearly articulated that. We hadnt created an awareness of that amongst these folks. So thats what we set out to do with the We Have the Meats campaign.

eMarketer: What channels did you use to get the word out about it?

Lynch: We have a 360-degee approach to communication. For a lot of folks, specifically in the CPG industry where I came from, that means marketing channels such as TV, radio, outdoor, mobile, digital and social.


For us it means all of those things, but it also means our restaurants. We were actually intending on launching this campaign back in May, but we delayed it until August so that we can make sure that every consumer touchpointincluding our restaurants, service models with our team members, menu boards and our packagingalso brought the idea to life.

Thats a big undertaking. We had to design all new menu boards, packaging, uniforms and in-store marketing materials. We delayed the launch of our campaign to make sure that we were able to deliver a holistic message. Thats how strongly we believe in the importance of consistent communication across every consumer touchpoint.

I am a huge believer in the social platform and the power of the social platform. We hired two new social digital-focused marketers on the team. Weve built a social listening room on the floor of our headquarters to track every conversation happening about our brand and our industry in real time.

That said, we still have a big commitment to television, radio and outdoor. But were finding a lot more of our energy is being focused on how we activate these more nontraditional platforms.

eMarketer: A big buzzword for years has been mobile. How have you used that medium in your marketing efforts?

Lynch: I believe in the power of mobile to change and transform our industry both from a customer service-experience standpoint as well as an operating model standpoint.

Mobile will be a platform that will allow customers to bypass the time they spend in the drive-thru or the time they spend in line at the counter. It will allow them to engage with our food and our products in a more intimate way.

Mobile will be a platform that will allow customers to bypass the time they spend in the drive-thru or the time they spend in line at the counter. It will allow them to engage with our food and our products in a more intimate way.

I also believe in the platform as an advertising medium. I think some of the stuff that Twitter, specifically, is doing in terms of how theyre able to identify people within their community that would have a disproportionate affinity for our brand or our products is really exciting. And I think were going to be able to get more efficient and more effective in our ability to communicate the things that we need to share with our potential customers through the mobile and social platform.

eMarketer: Arbys has used mobile advertising in the past and you also have a mobile site. Have you been investing in any other technologies or platforms, like NFC?

Lynch: I dont think we really want to lead there. Those types of platforms may have a place in our industry, but I think that we will probably be a fast follower in regard to leveraging any of those capabilities. NFC is a payment platform. Its something that hasnt gained as much traction in the US as it has internationally. Weve looked at it and have chosen not to go there.

Mobile complemented with the new beacon capabilities is probably where were investing the most.

eMarketer: What about mobile ordering?

Lynch: Mobile ordering allows consumers to bypass the line or be able to customize their meal in a less stressful way, which is very valuable. Were focused on making sure that its not just a functional application, but truly does add value and increase the emotional affinity for our brand by reducing the headaches associated with our industry.

Its definitely something were working on. As soon as we feel like weve got the right model set up to deliver a very positive customer experience and we have vetted that and worked out all the bugs, well roll it out.


Neiman Marcus Readies Visual Search for Shoes and Handbags

Wanda Gierhart

CMO

Neiman Marcus

eMarketer: How is Neiman Marcus using visual search?

Wanda Gierhart: Today, most online shopping experiences begin with wordseither a keyword search or navigating in a hierarchy on a website or in Google. We were thinking a picture is worth a thousand words. Visual search removes all of that context about what the word actually means. So from the moment of your inspirationfrom seeing something that you like on someone walking down the street with a great bag, or in a magazine or whereveryou can take a picture of it on our app and get immediate gratification.

The app searches within a few seconds, and comes up with something comparable, if not that same item, on our website that we sell. And then you just click to buy through our mobile app. It is as simple as that.

eMarketer: Does it cover your whole product catalog?

Gierhart: The initial launch will be shoes and handbags only. We just want it to get out there and [have people] start using it. And then, hopefully, well roll out to other categories. Shoes and handbags are some of those instant gratification things that people are buying, so we thought it was a great first product category for our mobile app.

The initial launch will be shoes and handbags only. We just want it to get out there and [have people] start using it.

eMarketer: In your testing, how accurate do you find it?

Gierhart: I would say its probably close to 95%, if not better. We have been working on this for the last several months, obviously. We wouldnt launch it if we didnt think we had it pretty refined. It works extremely well. I think visual search will revolutionize the industry and how search in general works for lots of different businesses.

eMarketer: What do you hope to achieve by adding visual search to your app?

Gierhart: Neimans has always been about providing great service to our customers at any time, any place, on any device. So thats how we originally thought of this. We were all sitting around and we [asked each other], how do we make shopping easier? And especially mobile shopping, when youre on the go, on the street, and you see someone out in a restaurant and think, Oh my god, I love that handbag. Thats a great pair of shoes.

Now you can just snap it. You dont have to go up to them and ask, Where did you get it? You can just take a picture of it and visual search and have it. Its that instant gratification of shopping.

You can just take a picture of it and visual search and have it. Its that instant gratification of shopping.

eMarketer: Do you think it will replace some types of searches, or do you think it will augment existing searches?

Gierhart: It will probably augment. Its adding a new utility to what was there before. There are probably several situations where you still are not going to be able to find that thing youre thinking of, so youre going to want to search. There will still be contexts for both.

eMarketer: What prompted you to decide to pull the trigger on visual search now?

Gierhart: We wanted to be first to market. I think visual search is the next thing that everyones going to start rolling out in the next year. So we just wanted to get out there and start trying it with our customers so we could figure out how to improve it.

eMarketer: Have you done any tests yet, nonpublic tests?

Gierhart: Weve rolled it out on our mobile app to all of our employees.

eMarketer: What has been their feedback so far?


Gierhart: Amazed. Theyre saying, This is the coolest thing.

eMarketer: What do you see as visual searchs impact on retail?

Gierhart: I think Google is going to have to rethink what they do. For a lot of people in the industry, this will really change things.

eMarketer: Do you have an opinion on what (if anything) needs to happen before visual search is broadly used in retail?

Gierhart: We are at a major technological breakthrough, but for widespread adoption, people will expect results to be even faster, even more accurate, and [theyll expect] the ability to quickly find more by whatever attribute they are looking for.

So, while someone may take a photo of a leopard-print high-heel shoe with a bow, theyll want immediately to have the choice to not only find shoes that look like that, but find more shoes in either leopard print or bows, to dig even deeper.

AOLs Goal to Merge Culture and Code Online

Erika Nardini

CMO

AOL Advertising

eMarketer: As CMO of AOL Advertising, what does your portfolio include?

Erika Nardini: I oversee everything having to do with the AOL Inc. corporate brand. I spend a lot of time thinking about three core audiences: our consumer audiences, B2B audiences (advertisers, leading partners and other third parties) and our employees.

At AOL, Im trying to bring our brands to those audiences in a way thats meaningful and valuable, and ultimately, represents an evolution of what this company stands for and believes in. I spend a lot of time thinking about how we go to marketwith leading ad formats and our strategyon a category and on a client level. In the same vein, I spend a lot of time thinking about how we manifest our brands like MAKERS, The Huffington Post and lifestyle brands for our consumer audiences.

eMarketer: Some of AOLs brands are well-knownThe Huffington Post, Engadget and StyleList to name just three. What does AOLs overall brand represent?

Nardini: One of the things that Ive been working on with Tim Armstrong [CEO and chairman] is defining AOLs

mission statement and value proposition. From a mission perspective at AOL Inc., were trying to simplify the web. If you look at our ad products, programmatic technology, advertising and publishing technology, were looking to simplify the internet in a way that unleashes the worlds best builders of culture and code. You cant have code without culture, and you cant, in this day and age, have culture without code.

eMarketer: Can you give me an example?

Nardini: A brand like MAKERS [a documentary series on AOL, featuring women leaders] started with 250 documentaries of women who defined the womens movement. We are bringing that brand to life by harnessing social media, every womans story and by creating applications and experiences that enable all of us to capture the MAKER in our own lives.

You cant have code without culture, and you cant, in this day and age, have culture without code.

Were thinking simultaneously about the platform to distribute information, to connect people with one another and the pipes that enable advertising and content to travel as seamlessly and efficiently as possible. At the same time, were thinking vis--vis brands like MAKERS, The Huffington Post or TechCrunch about the thought leadership and


cultural dialogues that are happening in the world and how we play a part in either instigating, nurturing or celebrating them.

Thats the balance for us in thinking about culture and code: We are simultaneously investing and growing leading content brands that make the world more interesting. We want to foster a culture that promotes dialogue and creates human connections, while also thinking about the pipe that will lay the foundation for those connections and that content to travel.

eMarketer: AOL has placed huge bets on video. Is video going to be the most important format driving AOLs ad revenues going forward?

Nardini: We are big believers in video. If you look at AOLs strategy from the acquisition of 5min Media [a video content syndication platform] in 2010 to the acquisition of Adap.tv in 2013, we are deeply invested in the video ecosystem. We believe there will be a day where everything is connectedlinear TV, social media and video across the entire spectrum. This will be the case specifically for how advertisers buy video, but also with video as the driver of consumer engagement across every single platform, from over-the-top nonlinear devices, to mobile usage, tablets, desktop, social and more.

We see video as a very viable strategy both from a consumer engagement, programming and monetization perspective. We believe in the connection between original content; curation of premium third-party content; the programming of that content based on time of day, audience and device; and the distribution of that content to any digitized place in the world. For example, if were creating a fashion video, we want that to live in any environment where premium fashion video makes sense.

eMarketer: Would you say that video is going to be a central driver of AOLs ad revenues? What percentage of the revenue pie does video represent?

Nardini: Video will become an increasingly large part of the pie. Im not comfortable putting a percentage on it, because there are a lot of factors that go into it. When we look at our business, we certainly look at investment in display media. That can be anything from original custom programming to branded entertainment opportunities to key sponsorships.

We have sold nine of the 16 original s hows to advertisers so far. We will continue to invest in original programming and also in branded entertainment that is video-driven.

We also have a portion of our business thats driven through programmatic on a network basis. We have a division called Be On, a brand and entertainment platform, and Adap.tv, which is monetizing video impressions programmatically. These will remain a core facet of our revenue mix, and they will grow in significance over time.

eMarketer: Do you have a sense of the share of AOLs digital video ad revenues that will come through original series content?

Nardini: We look at our ad revenues more holistically. We look at the originals as a way to grow audience and market our own brands. Its also very compelling programming for advertisers. Our video monetization model includes our original video programming, branded entertainment (the ability to create custom programs with brands and distribute those across our network), audience and content strategies through our 14 channels in the AOL On Network, and then the Adap.tv video programmatic platform.

eMarketer: AOL is investing heavily in talent and original video production. Will AOL continue a full-court press, investing in original content?

Nardini: We believe in premium content. We believe in authentic voices and remarkable stories. They come from our producers, filmmakers and our own studio, but we also recognize that they come from brands and our agency partners. In 2014, we launched 16 original shows from our studio system. Were incredibly proud of them, and we designed some to be more commercial than others. We explored programming for over-the-top formats [platforms like Roku, Netflix, Hulu, Apple TV] vs. social distribution formats, so theres a lot of creativity and thinking that went into the creation of our slate.

We have sold nine of the 16 original shows to advertisers so far. We will continue to invest in original programming and also in branded entertainment that is video-driven. A great example is MAKERS. Verizon and Unilever have been partners in MAKERS. Theyve used our content on their own platforms, in their marketing strategies, and weve co-created events together.


TD Banks Most Effective Channel? When a Customer Experiences the Brand

Vinoo Vijay

CMO

TD Bank

eMarketer: Social continues to play a big role for TD Bank in several of the initiatives you have launched, including TD Helps. Can you talk about that?

Vinoo Vijay: The way weve approached social is very consistent with the core brand value that we try to stand for every day, and that is to deliver just that little bit more convenience and human experience for our customers.

We also use social as a way to open up the dialogue with customers. We attempt to keep it as a natural point of conversation and try at all costs to avoid making it a sales platform.

eMarketer: The Automated Thanking Machine campaign, where TD customers received a special thank you ranging from flowers to trips went viral, and that really centered around human connections.

Vijay: We tend to want to know more about our customers, and the customers [in the campaign] came into our locations on a regular basis, and we got to know them.

Our most effective marketing channel is the actual moment when the customer experiences us in our store or on our website.

We invited them to a launchto test an ATM. That was essentially the setup that we had so that we could recognize them and thank them in a way that was genuinely helpful to them and at the same time continue to tell our story about our commitments to being a more human bank.

eMarketer: TD uses a variety of different channels to reach customers. What has been your most effective marketing channel?

Vijay: Our most effective marketing channel is the actual moment when the customer experiences us in our store or on our website. We put a lot of emphasis into the experience that the customer has because at the end of the day that experience is far more powerful than anything we can say.

eMarketer: Mobile seems to be another effective channel.

Vijay: Its huge. We know that the more consumers use digital platforms including mobilethe more they engage overall with us. Its not like they transfer their experience from offline to online, they just engage with their money and with their bank more.

eMarketer: Where do you see the near field communication space, as well as mobile payments, heading this year?

Vijay: We are very interested in that space and are investing in it, and obviously we understand the power that the payment side of it can have.

eMarketer: Is privacy still an issue and something thats holding people back?

Vijay: Privacy is a huge issue, and its obviously something thats very important to our customers and to us. However, I have not seen privacy be the stumbling block for a better experience.

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EMarketer CMO Interview Roundup

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