The DMA conference 2012

The DMA data conferenceThursday 1 March 2012, London

#dmadata

Gold sponsor Gold sponsor Media partner

Welcome from the chair

Terry HuntChief Executive Officer, Customer & Co

Keynote Address

Christopher GrahamInformation Commissioner

European data protection

reform

Achim KlabundePolicy Officer Data Protection, Directorate General for Justice,

European Commission

Achim has requested his slides are not made available

UK’s position on European

data protection reform

The Rt Hon. Sir Alan Beith MPChairman of the House of Commons Justice Select Committee

Refreshments & networking

Countdown to cookie

compliance

Fedelma GoodHead of Marketing Privacy & Information Management, Barclays

Marc DautlichPartner and Head of Information Law, Pinsent Masons LLP

Countdown to Cookie Compliance

Fedelma Good

Head of Marketing Privacy & Information Management, Barclays

Marc Dautlich

Partner and Head of Information Law, Pinsent Masons LLP

DMA Data Protection

Conference 1st March 2012

Introduction

http://www.dma.org.uk/content/countdown-cookie-compliance%E2%80%A626-may-2012

Covering

• Introduction

• Clarifying the boundaries of the revised law

• Guidance - from the legal and the regulatory perspective

• How ready is UK plc for May 26th?

• What impact are the changes likely to have?

• Some final, practical advice

Clarifying the boundaries of the revised

law

Beware: The law doesn’t just cover cookies

• The law isn’t actually about cookies, but because it affects them so much people

have started calling it the ‘Cookie Law’

• The law covers all technologies which store information in the “terminal equipment" of

a user, and that includes so-called Flash cookies (Locally Stored Objects), HTML5

Local Storage, web beacons or bugs…and more

And it doesn’t just apply to websites …

• You also need to think about other instances where similar technologies are used e.g.

emails and Apps.

But intranet sites are excluded

• i.e. sites targeted purely at your employees.

In summary

Those setting cookies must:

• tell people that the cookies are there,

• explain what the cookies are doing, and

• obtain their consent to store a cookie on their device.

Can browsers help?

• The law provides that browser settings can be used to indicate

consent, but, the view of the ICO is that current browser settings are

inadequate for the task.

• The hope is that browser software will provide a solution (but this

would rely on 100% uptake of any new releases).

• Microsoft's Internet Explorer 9 browser already offers a setting to

protect users from potentially intrusive cookies.

• Firefox and Google's Chrome could soon follow suit as they attempt

to integrate 'Do Not Track' technologies.

• Safari, the default web browser on the Apple iPad and iPhone,

blocks third-party cookies by default.

• DCMS are continuing to talk with the browser manufacturers and we

hope to hear more from this in the near future.

Guidance

The ICO’s perspective• On 13 Dec 2011 the ICO issued his half-term report on how things

are going. His verdict, he wrote, "can be summed up by the

schoolteacher's favourite clichés: 'could do better' and 'must try

harder'. A report that listed the URLs of sites that were perfectly

compliant from day one would be very short indeed. This is not a

surprise to anyone who recognises that redeveloping and

redesigning is no easy task.“

… from the legal and the regulatory perspective

The ICO’s core advice remains the same:

“It is not enough simply to continue to comply with the 2003

requirement to tell users about cookies and allow them to opt out.

The law has changed and whatever solution an organisation

implements has to do more than comply with the previous

requirements in this area.”

1. Check what type of cookies and similar technologies

you use and how you use them.

2. Assess how intrusive your use of cookies is.

3. Decide what solution to obtain consent will be best in

your circumstances.

Take some comfort …

• “The guidance we’ve issued today builds on the advice we’ve already set out, and now includes specific practical examples of

what compliance might look like. We’re half way through the lead-in

to formal enforcement of the rules. But, come 26 May next year,

when our 12 month grace period ends, there will not be a wave of

knee-jerk formal enforcement actions taken against those who are

not yet compliant but are trying to get there.”

Some recurring questions

• Websites with a global audience?

• Legal responsibility vs brand impact?

• Who goes first (or last)?– Will big brands wait until 26th May to make their website changes

live or will they step out bravely earlier than this?

• The do nothing brigade?– Are those who have decided to do nothing playing a dangerous

(or a clever) game?

• Consumer awareness?– As awareness and understanding increase will website users

who come across non compliant sites be more likely to

complain?

Some emerging approaches

• IAB

• ICC

• Non-trade association approaches:– Evidon

– CookieQ

How ready is UK plc for May 26th?

• Google awareness campaign – Good to know

• Google

• Redbridge Media

• BBC

• DCMS

What impact will all this have?

The (free) internet relies on cookies …

• A large number of services may only be offered – free of

charge – because their providers finance them by means of

advertising and behavioural targeting has proved to be the

most efficient method of advertising on the Internet.

• In other words, many services that are available on the

Internet could not be offered at all or at least not free of

charge, if they were not financed by advertising.


• Conservative estimates are that over 92% of websites in the

EU use cookies at the moment

• They’ll either have to stop using cookies, or start gaining

consent

• And the burning issue is … how to gain consent

• A business coalition has created a website to illustrate how

the Dutch transposition of the European E-Privacy Directive

would impact the web surfing experience …


• There are other sites that demonstrate the potential impact in a

humorous way including David Naylor’s site …


• And no matter what choice you make the impact could be significant …

Some final, practical advice

• If you haven't already started to look at the issue, do so today

• Inform and educate internally

• Ensure the issue is understood by senior stakeholders

• Allocate budget and resource

• Set up a cross functional task force to manage the process

through to completion

• Ensure customer facing staff know what to say if customers

ask what your organisation is doing to comply

• Make easy and immediate changes e.g. add to your existing

cookie policies to tell your customers that you are getting

ready

Some final practical experience

• Identify all your websites

• Audit your websites

1. Check what type of cookies and similar technologies

you use and how you use them.

2. Assess how intrusive your use of cookies is.

3. Decide what solution to obtain consent will be best in

your circumstances.

• Implement and test your solution

• Provide clear and understandable descriptions of

cookies (in same or similar language to others?)

And finally

• Remember that this is not just about being compliant for

26 May 2012:

– Set up policies and procedures to manage the issue going

forward

• Ensure the issue is understood by senior stakeholders

Thank you.

Has data compliance killed

the telemarketing channel?

Mark Walton

Chief Executive Officer, Aquira

Mark Walton, C.E.O.

Will Data Legislation

theTelemarketingTelemarketingTelemarketingTelemarketing channel ?killkillkillkill

60 millionrecords a year

20,000new customers a month

1000managed staff

££2 billion2 billion1.1 m people

500 businesses

60,000 in telemarketing

124124 companiescompanies

86%86% saidsaid ‘‘telemarketing telemarketing

importantimportant’’

68%68% planning planning MOREMORE

intrusive generic

valueless

intimidating

annoyingdishonest

time-consuming

distracting

scary !

rant to Ofcom..

Source: Ofcom, CCT data September 2010 to September 2011 Source: ICO, 6 Jan 2012

1 2

EC legislation EC legislation headlinesheadlines•It’s personal !

•Security and storage

• Why, what purpose, how long?

•Right to access portability & complaint

•Communications – EXPLICIT OPT-IN

•Pro-active breaches – come clean!

Affects us all Affects us all

Be more proactiveBe more proactive

Severe finesSevere fines

(a) the purposes of the processing;

(b) the categories of personal data concerned;

(c) the recipients or categories of recipients to whom the personal data

have been disclosed, in particular the recipients in third countries;

(d) the period for which the personal data will be stored;

(e) the existence of the right to request from the controller rectification,

erasure or restriction of processing of personal data concerning the data

subject; (right of access)

(f) the right to lodge a complaint to the supervisory authority and the

contact details of the supervisory authority;

(g) communication of the personal data undergoing processing and of

any available information as to their source.

telemarketing hits legislative brick wall?

17.217.2million TPSTPSTPSTPSTPSTPSTPSTPS1212121212121212 million landline

5.2 mobile

Multi-channel access

Sophisticated consumers messages a daymessages a daymessages a daymessages a daymessages a daymessages a daymessages a daymessages a day

Telemarketing can be

positiveTelemarketing can be Telemarketing can be

positivepositive

Affinity Online Retail Telemarketing

Conversion rates & ROIConversion rates Conversion rates && ROIROI

LEAD GENERATIONStandard

Data

Data DMC Rate 30.00%

Calls Per Hour 22

DMC’s Per Hour 6

Productive Hours Per Day 6.5

DMC Conversion Rate 1%

Sales Per Agent Day 0.43

Data Penetration Rate 50%

Data Required Per Day 286

Cost Per Lead £0.10

Data CPA £66.67


Data

Enhanced

Data

Data DMC Rate 30.00% 50.00%

Calls Per Hour 22 10

DMC’s Per Hour 6 5

Productive Hours Per Day 6.5 6.5

DMC Conversion Rate 1% 12.50%

Sales Per Agent Day 0.43 4

Data Penetration Rate 50% 80%

Data Required Per Day 286 82

Cost Per Lead £0.10 £1.50

Data CPA £66.67 £30.28


Data

Enhanced

Data

Data DMC Rate 30.00% 50.00%

Calls Per Hour 22 10

DMC’s Per Hour 6 5

Productive Hours Per Day 6.5 6.5

DMC Conversion Rate 1% 12.50%

Sales Per Agent Day 0.43 4

Data Penetration Rate 50% 80%

Data Required Per Day 286 82

Cost Per Lead £0.10 £1.50

Data CPA £66.67 £30.28

Bound by figures

Driven by data

Consumer

insight

we can target you

Emerging telco

negative press

Ofcom penalties ?

97 complaints

3 million records per month

20 million records hosted

Dialler ready data

Sales coaching

Performance and MI reporting

getting it right

• Successful performance model developed

• 10,000 additional customers every month

• Cost per sale down by 16% (lowest ever )

• Sales up 30% on year

• Annual data usage reduced by 150%

• ROI has saved over £1million per year

• Reduced non compliant data usage to zero

• Mitigated bad publicity and avoided Ofcom penalties

getting it right

results

Data Legislation

will not killkillkillkillthe

Telemarketing channel

Mark Walton, C.E.O.

Thank you.www.aquira.co.uk 0843 289 0500

Break out sessions

Best practice and legal

issues of social media

Stephen Groom

Head of Marketing and Privacy Law, Osborne Clarke

Best Practice and Legal Issues of

Social Media

Stephen Groom

Head of Marketing and Privacy Law

Osborne Clarke London

1 March 2012

osborneclarke.com

60

Coming up

• Some basics

• Top ten social media cases: you are the judge

• Key lessons

osborneclarke.com

61

Some basics: CAP Code

• ASA-enforced "CAP" UK Code of Non-broadcast Advertising,

Sales Promotion and Direct Marketing ("CAP CODE") applies to

any marketing activity in social media provided it is:

– under the advertiser's control and

– directly connected with the supply or transfer of goods, services,

opportunities and gifts or

– directly soliciting fund-raising donations

• Penalties:

– full case report published

– removal of paid-for search linking to relevant page

– ASA paid-for ads on search engines, highlighting advertiser's non compliance

– microsite for non-compliant online advertisers

osborneclarke.com

osborneclarke.com

63

Some basics: unfair tradinglaws

• Consumer Protection from Unfair Trading Regulations 2008

("CPRs")

• apply to the following in any media channel

– any act, omission, course of conduct, representation or commercial

communication (including advertising and marketing) by a trader which is

directly connected with the promotion, sale or supply of a product to or from

consumers

• Penalties:

– For businesses and consenting, conniving or negligent directors, managers,

secretaries or a person purporting to act in that capacity

– fines up to £5000 and up to 2 years in prison

– Injunctions under Enterprise Act 2002

– Public undertakings

osborneclarke.com

64

Some basic rules to follow

• Make it clear that an ad is an ad (and not someone's post)

– see "always unfair" commercial practices #11 & #22 in Consumer Protection

from Unfair Trading Regs 2008 Schedule 1

– See also 2.4 and 3.45 CAP Code-identify advertorials and testimonials must

be genuine

• CAP Code basic rules: legal, decent, honest, truthful

• User-generated content

– must comply with CAP Code if adopted, highlighted etc by advertiser

– re-tweeting could trigger CAP Code testimonial rules

• Data protection: collecting personal data from/contacting

individuals on social media? Comply with DPA/PECRegs

osborneclarke.com

65

Social media- marketing on Twitter

• See Twitter's own rules:

– Promoted Products Policy, UK Guidelines and

Guidelines for Contests on Twitter e.g.

• get permission to use another's Tweets

• promo rules should disqualify entrants using multiple

accounts to enter

• discourage repeated retweets

• Promoted Products targeted to the UK that directly promote

unlicensed gambling services not allowed

• NB Celebrity Tweet issues-watch out for the Office of Fair

Trading

osborneclarke.com

Social media-marketing on Facebook

• See Facebook's own rules:

– Promotions Guidelines, Advertising Guidelines and

Platform Policies

– Promotions must for example:

• state that promo is in no way sponsored, endorsed, administered or

associated with Facebook

• not condition entry on user taking any action using any Facebook

features or functionality other than liking a page

• not use Facebook features or functionality as an entry mechanism eg act

of liking a page

• NB Sponsored stories- CAP Code rules re: eg alcohol66

osborneclarke.com

Top ten cases #1OFT vs Handpicked Media Feb 2011

• Handpicked Media ("HPM") operates a commercial

blogging network

• As part of its client services, it engages bloggers to

provide editorial coverage of topics eg fashion, music

• Blogs include favourable references to HPM clients

• Appear on various sites including Twitter

• No mention of commercial connection between blogger

and brands

• OFT investigates..

67

osborneclarke.com

Top ten cases #2Nestlé and Greenpeace March 2010

• Greenpeace accuses supplier of palm oil to sweet brands

of illegal deforestation

• Kraft/Unilever suspend contracts, Nestlé: we will

investigate first

• Greenpeace posts a video criticising Nestlé

• Nestlé takes legal action to get video taken down

• Greenpeace calls for mass retaliation

• Nestlé's Facebook page fills up with complaints and user

profile pics carry altered Nestlé logos

• Nestlé tells users it may delete altered logos from profiles68

osborneclarke.com

Top ten cases #3Preece v JD Wetherspoon PLC May 2012

• Wetherspoon employee handbook reserves right to take

disciplinary action if …

• any employee blog "including pages on sites such as Facebook

..is found to lower the reputation of the organisation, staff or

customers"

• Pub manager Miss Preece posts negative comments on

Facebook about verbal abuse and physical threats she

suffered at hands of two named customers

• Miss Preece thought only 40-50 of her closest friends

would see these. She actually had over 600 contacts

• Preece is sacked for gross misconduct and appeals69

osborneclarke.com

Top ten cases #4Snickers/ Rio Ferdinand et al Jan 2012

• Rio Ferdinand, Katie Price & ors start posting odd Tweets

ending with their photo with a Snickers bar

• Last Tweets link to an @snickersUKhungry#spon account

set up by Mars

• Unclear whether the personalities are paid by Mars

• Two complaints to the ASA

• The ASA is investigating

70

osborneclarke.com

Top ten cases #5Ebuyer and the ASA December 2011

• Website for online electrical goods retailer Ebuyer.com

• "Foehn & Hirsch Portable WiFi Internet Radio (black)" and

showed four and a half stars

• Further text states "17 reviews", all favourable

• Complainant's negative review does not feature and he

complains to the ASA

• Ebuyer to ASA: "current filters are pre-set to show those

ratings which are most useful and these will be more

positive than negative"

71

osborneclarke.com

Top ten cases #6Hays Recruitment vs Ions June 2008

• Middle ranking Hays consultant Mark Ions…

• uses his LinkedIn network to approach clients for his own

rival agency "Exclusive Human Resources" ("EHR")

• EHR set up 3 weeks before Ions resigns from Hays

• Hays apply to court for an order that Ions hands over his

LinkedIn business contacts

• AND all emails sent to or received by his LinkedIn account

from Hays computer network

• AND all documents showing any use by Ions of the

LinkedIn contacts and any business obtained from them72

osborneclarke.com

Top ten cases #7Mercedes Benz "Win a Vito" promo Jan 2012

• Entrants to submit creative content showing why they

should win

• Judging panel draws up shortlist of 10 for public vote

• Ts and cs: right to alter, amend or foreclose at any time

• During voting, a contestant complained that 2 other

entrants had posted their entries on forum sites using

public voting systems

• After initially saying this was OK, Mercedes Benz ("MB")

discovers that the 2 entrants had been offering to pay for

votes73

osborneclarke.com

Mercedes Benz "Win a Vito" promotion #2

• MB suspends voting period, disqualifies 2 entrants and….

• amends ts and cs to

• reserve right to disqualify any finalists if it has reason to believe

anyone voting for their submission has been paid or incentivised in

any way, either by a finalist or a third party

• MB restarts voting

• MB discovers that the original complainant is using websites allowing

her to exchange votes with other contest entrants

• MB disqualifies complainant

• Complainant complains to the ASA that late change to the rules

unfairly led to her disqualification and that the contest had not been

conducted fairly 74

osborneclarke.com

Top ten cases #8Coastal Contacts, Inc (US) November 2012

• Coastal Contacts ("CC") Facebook page:

• "Like this page! So you can get your free pair of glasses"

• Competitor 1-800-Contacts complains to the National

Advertising Division ("NAD") that CC had been misleading

and fraudulent by…

• omitting to mention offer conditions such as the need to

pay cost of shipping and handling until after "like" clicked

and ……

• mentioning the number of "likes" received from all its

Facebook pages globally in later press releases given to

investors 75

osborneclarke.com

Top ten cases #9PhonepayPlus and Captive Interactive Feb 2012

• Captive Interactive operates "Miss Teen Queen UK", an

online beauty pageant ..

• and encourages contestants to post promotional material

on Facebook urging friends to send texts supporting their

entry

• The number to text is a premium rate service number

• One contestant does this and as a result two sisters aged

11 and 12 spend a collective £2548 texting their support

for that candidate

• PhonepayPlus investigates76

osborneclarke.com

Top ten cases # 10TripAdvisor and the ASA February 2012

• The TripAdvisor website states

• "read reviews from real travellers…offers trusted advice…more than

50 million honest travel reviews

• on review pages is TripAdvisor logo and "Reviews you can trust"

• KwikChex Ltd complains to the ASA that the above is

misleading as TripAdvisor does not verify reviews and

cannot not prove they are genuine

• TripAdviser: no review site can guarantee it is 100% fraud

free. Not practical to manually screen all reviews pre post.

All reviewers have to click to confirm that their review is

honest and genuine77

osborneclarke.com

78

Sum-up

• Reviews, likes & other user-generated content: use

and present with care and remember copyright/moral

right!

• Employees, social media and brands -accidents waiting

to happen so review your employee social media policies.

• Data protection -so far the platforms, not marketers have

occupied data privacy headlines, but don't be the first to

change this and watch out for the new DP Regulation.

• Paid-for endorsements? Read the IBA/ISBA Guidelines.

osborneclarke.com

79

Any questions?

Stephen Groom

Head of Marketing & Privacy Law

T +44 (0) 207 105 7078

M +44 (0) 207 105 7078

[email protected]

www.marketinglaw.co.uk

[insert photo here]

Height = 5.39cm

Width = 5.81cm

Best Practice and Legal Issues of

Social Media

Stephen Groom

Head of Marketing and Privacy Law

Osborne Clarke London

1 March 2012

Lunch & networking

Multi-channel permission

management

Daniel CrossDirector of Strategy, Lateral Group

Chris ParkinsonGroup Compliance Director, Lateral Group

Multi Channel Opt-in and Permission

Marketing

Today’s Agenda

• Introducing Lateral Group

• The regulatory challenge

• Case study and approaches

• Q&A time

Introducing Lateral Group

Lateral Group Our Vision & Mission

• We help our clients gain greater insights into their customers

and prospects, supporting them to profitably sell more

products and services by developing and enhancing

relationships through the creation and delivery of integrated

communications across all channels.

• We will continually demonstrate the successes that we

deliver our clients through the clear measurement of ROI,

driving on-going effectiveness and efficiency.

Key Propositions

Proposition Elements

The ICM Competency Framework

The Regulatory Challenge

Legislation

• Data Protection Act

• Privacy and Electronic Communications Regulation

DPA Requirements

• Have you gained the correct permission?

• Did you explain what you are going to use data for

• Fair processing notices, Privacy policies

• Did you gain consent?

• Freely given, full informed, specific to the

circumstances, and with a positive indication of the

Data Subject wishes

• Remember it can be withdrawn!

• You are not using the data for something else – are you?

• You can only use data for the purpose or purposes

specified at the point of collection

Legislation

• Privacy and Electronic Communications Regulation

• Is it a service message or marketing message

• Can you send a service message?

• Can you send a marketing message?

• Is it B2C or B2B?

• Different rules for each

• What sort, if any, opt-in do you have or need?

• Can you prove it?

Email Marketing

• Compliance Requirements

• From PECR and DPA

• Service message

• Opt in not required, but you must have permission

• or marketing message

• Opt in is required for consumers

• Not for business

• But different in different countries

• What is Opt-in or soft opt in

European Email opt in rules

Country Consumer Business

Austria Yes No

Denmark Yes Yes

France Yes No

Germany Yes Yes

UK Yes No

Email Opt In

• Soft Opt In

• If in the process of making a purchase a consumer

supplies their email address

• They consent to receive marketing email “for the time

being”

• On similar products and services

• As long as unsubscribe was offered at the time and in

every subsequent communication

Email Marketing

• Gathering Consumer Consent

• Cannot provide pre ticked opt in boxes

• See example

• Must opt in to having their email address passed to third

parties

• Each email communication must contain an unsubscribe

mechanism

Privacy and Consent

• When collecting consent

• Store the paragraph that the user signed up to against

record in database

• Give user as much choice as possible to get best

response

• Allow for service messages in web privacy

• Do not be too restrictive with definitions of usage

• You cannot easily change it later!

• Understand email requirements from PECR

Addressing the Challenge

Increasing Email Permissions

• The drive to integrate online channels to reduce costs

and develop relationships often highlights issues with

customer permissions.

• Often these arise through changes in permission

processes, legacy systems or new data acquisition.

• …there are a number of strategies available for

marketers to ensure that their permission data is

optimised in a multi-channel environment.

Email Permission Strategies

EmailNo Email

No Permission

Permission

Engage: Opt In Permissions Capture

•

Result: 31% increase in opted-in contacts

Questions

Consumer targeting through

the ages

Mark PatronChief Executive Officer, RedEye

10

6

Multi-channel marketing

analysing multi-channel online data is like

trying to drink from a fire hydrant

Mark Patron

1st March 2012

DMA data conference

10

7

Agenda

• Data Protection legislation

• How consumer data has developed

• Behavioural data - email example

• Multi-channel media attribution

10

8

Data Protection legislation

• European Data Protection legislation is good for the

advertising industry. Protects it from itself.

• Just compare with US self-regulation where three

quarters of Americans signed up to “do not call” list.

• Consumers in the US feel they have lost control of their

personal data. In Europe consumers have recourse

through Data Protection legislation.

• The balance between consumers’ right to privacy and

marketers’ wish to target is a fine and sometimes fraught

one.

• This balance changes over time, for example Tesco

Clubcard, 1 - 2% discount in exchange for personal data.

10

9

New EU Data Protection Directive

New right to be forgotten

Limits on profiling of

individuals

Data protection registration

requirements and costs

abolished

Good idea. Consumers

wound up if no one

remembers. Auditing?

In employment law for a fair

selection or redundancy

process use a scorecard!

Really for mainframes!

Can legislation keep up?...

11

0

Facebook and privacy

• “Every year people are sharing twice as much

information as the previous year” Facebook CEO, Mark

Zuckerberg

• Facebook is a case study in how respecting and

protecting privacy is fundamental to trusting a brand

• Facebook, similar to many data driven businesses, has

an inherent conflict - it makes more money by being

more open with peoples’ personal data

• The next generation are growing up online and are not

passive recipients of information anymore, they share…

• But employers are discriminating against candidates

because of something they shared on Facebook

11

1

Google and privacy

Content tracking Google new privacy policy:

identify users across all its

services and integrate data

across all its services

Could locate individuals in any

digital photograph on internet

& derive where user has been,

with whom and doing what

Add YouTube and Android smartphones “implications are breathtaking”

Source: FT 16/2/12

Digital photographs

when & where taken

+ face recognition

11

2

Different types of consumer data

Customer

Demographic

Attitudinal

Transactional/RFM

Behavioural

Lifestyle

Credit

Market research

What?

Where?

How?

Why?

11

3

How consumer data has developed

Date Type of data Source Recency 1st/3rd

party

Revenue/

user/yr

‘80’s Customer d’base

Geodemographics

Customer

transactions

Census

< 1 day

< 10 years

1st

Anon.

£50

£0.05

‘90’s Lifestyle Lifestyle surveys < 6 months 3rd £2

‘00’s Transactional

Search

Behavioural

Co-op databases

Google

Web analytics and

email database

< 1 month

Real time

Real time

3rd

1st

1st

£0.5

£15

£50

‘10’s Social media User generated

shared content

Real time 1st/3rd £3

11

4

How do you segment your customers?

Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011

11

5

What do you use segmentation for?

Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011

11

6

Relevance is key

46% of respondents said

that irrelevancy is the

main reason for

unsubscribing from

company’s email

newsletters…

Frequency of emails is another reason with 23% of email

users listing it as a reason to unsubscribe.

11

7

How to make emails more relevant

11

8

How it is done

11

9

Evans Cycles case study

Evans Cycles implemented

a highly segmented,

customer lifecycle email

marketing strategy.

• 103% increase in year

on year revenue

• 2399% ROI

• 84.9% open rate

• 40.5% click through rate 2399%

ROI

12

0

Online data varies considerably in quality

Method Good Limitations

IP Cheap and easy Inaccurate

garbage-in garbage-out

Cookie Cheap and easy,

More accurate

Cookie deletion and

blocking

Log in More accurate for

registered visitors,

Better for targeting

More expensive

What to do about non

registered users?

Cookie & log in Much more accurate More expensive

More difficult

More commitment needed

Over Reporting of Visitor Figures over 28 day period

on xxx.com

0%

100%

200%

300%

400%

500%

600%

700%

1 3 5 7 9 11 13 15 17 19 21 23 25 27

IP Based Cookie Based

Source: RedEye

12

1

Greatest challenges facing web analytics?

Web Analytics Association (2011) Outlook Survey

12

2

A typical customer journey

Origination Assists Last click

12

3

Media attribution - last click wins

• Default model since post click tracking began online in the

mid nineties and adopted as standard by Google AdWords,

DoubleClick and web analytics vendors

• Aggregators like MoneySupermarket have used a model

that allows them to own the prospect for up to 60 days

• Online data shows the full interaction a customer has with

the brand across all channels

• Enables you to see the time between visits, the influence a

channel has on each sale

• But it’s a lot of data to crunch…

12

4

What the data looks like

12

5

Monarch Airlines case study

• On average 60% of sales have some form of assist

• Half of all sales with an assist complete on a different

channel from the assist

• In some cases you can attribute up to 60% more of your

sales to tracked media rather than ‘unknown’ or ‘direct to

site’

• Media attribution analysis led to streamlining online

marketing activity:

• Migrating from PPC to SEO for destination terms

• Paid destination terms expensive & not converting OR

supporting SEO terms

• Increased investment in comparison site activity…

12

6

Assist Correlation Nodes – January 08

Paid SearchAll Sales

17% no assists

42% self assists

Natural SearchAll Sales

18% no assists

45% self assists

EmailAll Sales

2.5% no assists

48% self assist

17%

4% 9%

3.5%

8.5%

14.5%

Comparison

SitesAll Sale’s

29% no assists

30% self assists

4%

8.5%

3.5% 10%

3%

2%

Comparison sites

29% no assists

Lower crossover to over

channels

Increase investment

12

7

Assist Correlation Nodes – January 08

Paid Search

– Non

BrandAll Sales

25% no assists

0% self assists

Natural Search

- BrandAll Sales

16% no assists

41% self assists

Paid Search -

BrandAll Sales

17% no assists

42% self assist

25%

0%

16%

12.5%

0%

0%

Natural

Search – Non

BrandAll Sales

30% no assists

31% self assists

9%

0%

0%

4.5%

8%

4%4%

4.5%Non brand / Destination

terms

Not influencing brand

terms

Don’t spend extra money

on expensive paid

destination terms

Drill into search

12

8

Example output matrix

% last Click Sales

% total contribution

Spend More

Starts sales process -

Integrate in overall

strategy

Closes sales -

Integrate with overall

strategy

Reduce spend

Email

PPC

SEO

Affiliate

Display

12

9

Conclusion

• The balance between consumers’ right to privacy and

marketers’ wish to target is a fine and sometimes

fraught one

• 1st party data - consumers understand and expect

3rd party data - consumers expect permissioning

1st/3rd party sharing/network effects - more thought reqd.

• We are in danger of blindly giving up our future privacy

in return for free apps

• We need good regulation and privacy watchdogs to

protect consumers (and the advertising industry from

itself), but not to stifle innovation (or jobs)

13

0

Thank You

The impossible dream: How to

adopt basic rules to measure

your marketing

Matthew TodChief Executive, Logan Tod & Co

© 2011 Logan Tod & Co

The Impossible Dream? Complete, accurate & cost effective Multi-Channel Measurement

Matthew Tod, CEO Logan Tod & Co

© 2011 Logan Tod & Co March 2, 2012


What I’m going to talk about today

• The broken measurement model and the reasons it requires an upgrade to meet the needs of Multi-Channel businesses

• Why most Cookies are broken and we should celebrate their demise wholeheartedly

• The measurement challenge that we now must tackle

March 2, 2012© 2011 Logan Tod & Co 134


The consumer purchasing journey time for many categories extends over a considerable period


Source: Google/Nielsen NetView – Beyond Last Click


The complexity of the purchase journey is much greater than is usually appreciated


This is probably an underestimate

due to the nature of the survey

panel

Source: Google/Nielsen NetView – Beyond Last Click


The current measurement model is very simplistic and is based upon an old fashioned view of the web



The simplistic model does not match the facts that Logan Tod & Co measure for clients every day


Less than half of sales come

from the “1 click 1 channel”

model

Source: Logan Tod


The real Single View is very complex when real consumer behaviour is mapped out over time



Cookies ‘suck’ as a tracking mechanism, so stop worrying about them so much!



Our tracking methods are broken and need to adapt and develop a whole new measurement paradigm

• Most tracking is binary (buy/didn't buy) and makes no allowance for the consumer journey

• “Last Click” predominates

• We focus on single outcomes not value created

• No value in research? Too difficult? Poor knowledge?

• Scorecards provide a much better perspective on campaigns

• By not showing the full impact of a campaign we

• Over simplify the marketing process

• Hide real insight into how consumers buy

• Undervalue our efforts

• Misrepresent ROI


© 2012

The numbers don’t add up again, don’t pretend they do!

You need to think about a total measurement strategy

Perfection is unachievable, aim to lower uncertainty

You will need to accept working with samples of data

You will need to use statistical methods not counts

Testing has to be built in to all marketing activity

02/03/2012© 2012 142


Defining your vision for a multi-channel data, measurement and insight strategy

• What are the BIG questions you need to answer?

• How should I best allocate my marketing budget?

• How can I optimise each channel within a multi-channel context?

• What are the real constraints to faster more profitable growth?

• What is the VALUE of the answers to these questions?

• Measurement costs, but you have to spend appropriately, backed by a proper business case, to justify it

• The business case is built by answering questions such as:

• What is the true profit you would generate from being 10%, 20% or 30% more effective at spending your marketing budget?

• What would be the value of focusing your development budgets on the real constraints to growth?



Good questions need integrated data sets & smarter methods to provide valuable answers



Good base data is essential; but currently there is a lack of focus and investment

• ‘Buckets of campaign data’ held in different systems are misleading, making sensible analysis impossible

• One source of ALL digital campaign data is a pre-requisite

• All means all! Search (paid, natural), Affiliate, Email, Display, Comparison engines etc. recorded in one system

• The single campaign data collection tools include:

• Full data collector tools: Celebrus, Magiq

• Tag management tools: Tagman, Tealium, Site Tagger

• Web analytics tools: Adobe Omniture, Coremetrics, Google Analytics, Webtrends

• Tools are not enough, process is needed to make it work



Single View cannot be achieved, so do simple things quickly, earn a return, evolve and improve

• Connected ‘Islands of Excellence’ NOT a ‘Single View of the customer ’ is the best option currently

• White Elephant ‘Single view of customer’ IT driven projects are too slow, too expensive and will not yield a single view

• Build Island of Excellence first

• Campaign data: Single collection point for all campaigns

• Product data: Price, relative price, review score, availability

• Customer data: Transactions, engagement, comment

• Customer experience: Measure the experience across platforms

• Use Cloud based tools, like Quantivo, to speed up production of each island and then connecting islands together



Tools like Quantivo are game-changers for multi-channel data analysis & insight


Answer real-world questions to help

you drive impressions, visits,

conversions, or any other behavior.

Answer real-world questions to help

you drive impressions, visits,

conversions, or any other behavior.

This online media provider

discovered that Xbox channel

content was bringing first-time

visitors referred from Google back

for repeat visits...

This online media provider

discovered that Xbox channel

content was bringing first-time

visitors referred from Google back

for repeat visits...

1

...and that those

return visitors were 4x

more likely to be

attracted to music

games...

...and that those

return visitors were 4x

more likely to be

attracted to music

games...

2

...and that sessions which featured

visits to music game content more

than doubled the average page views

for that session, from 22 to over 45!

...and that sessions which featured

visits to music game content more

than doubled the average page views

for that session, from 22 to over 45!

3


Statistical techniques are now a prerequisite to understanding consumer behaviour properly



People & Skills


A new breed of Marketing Data Scientists is needed

who can use statistics and plan/execute the tests

needed to deliver answers


To summarise

• The current industry measurement model needs to be retired

• It is naive and does not reflect consumer reality

• It is broken because it relies so heavily on the discredited cookie

• It cannot provide the answers to proper business questiosn

• It undervalues the impact of may activities

• Get a measurement strategy before everything else

• Smart data collecting with a simple scalable approach enables smart people to deliver competitive advantage

• So what is your plan?


Beyond the like: Measuring

value and effectiveness on

social media engagement

Roger WarnerManaging Director, Content & Motion

Refreshments & networking

Making sense of consumer data

in the digital world

Jonathan BurstonSales Director, CACI

Making Sense of Consumer Data in the Digital World

Jonathan Burston

Sales Director, Integrated Marketing Group

A few years ago there was ‘The Line’…

Long lunches, beautiful ads, sexy models, big budgets…

Sales? ROI? The econometric model says we need more TV…

“We’re brand builders, darling.”

Targeted comms, just smaller budgets (& lunches)…

Response Rates may be low but it’s profitable…

“We use data-driven insight & analysis”.

…consumers interacted directly with brands

I buy in shop, direct or through an intermediary

I’ll ask friends or read reviews in magazines

I watch TV, read the paper, have a mobile

Identity theft is losing my wallet

My bank, the Government & data companies know me

Brands or data companies survey me

I can opt out or ignore comms

“

”

The information age has transformed this…

Google, Facebook, Apple etc. are the new data giants

Technology, software, social change?

We’re all fuelling this data explosion

More data for marketeers then ever before…

Explosion of channels

…consumers don’t just engage directly with a brand

800m Facebook users/ 100 million Twitter users

½ of all mobiles to be smartphones by 2015

Over 250m Tweets a day

Over 18bn App downloads via iTunes

Twitter has over 15bn API calls per day

Now we have what we’ve always craved: Contextual Data

Active

Brand

Engagement

Tracking technology continually getting smarter

Consumers openly supply data to brands & friends

Brand interaction can be tracked

Word of Mouth can be measured

Consumer influence can be gauged

Likes, dislikes, real-time location, preferences, interest…

Digital trails are long and complex…

PersonalPersonal

PurchasePurchase

PreferencesPreferences

LocationLocation

InterestInterest

Click-StreamClick-Stream

Open RatesOpen Rates

Click-ThrusClick-Thrus

CommentComment

SentimentSentiment

IP AddressIP Address

CookieCookie

Time/DateTime/Date

ScreenScreen

LikesLikes

NetworkNetwork

EngagementEngagement

ReferralReferral

AffiliationAffiliation

AgeAge

IncomeIncome

Geo-demsGeo-dems

TriggerTrigger

BehaviourBehaviour

…customer records are becoming more complex & diverse

Personal DataPersonal Data

Demographic & LifestyleDemographic & Lifestyle

Transactional InformationTransactional Information

Comms DataComms Data

Personal DataPersonal Data

Demographic & LifestyleDemographic & Lifestyle

Transactional InformationTransactional Information

Behavioural (Web & Comms)Behavioural (Web & Comms)

Predictive (Web & Comms)Predictive (Web & Comms)

UGI & CVIUGI & CVI

Social Media Engagement Social Media Engagement

SentimentSentiment

Comms DataComms Data

A Consumer Digital Data Model

ANONYMOUS

CONSUMERS

IDENTIFIABLE

CONSUMERS

Data collected & aggregated

on anonymous consumers

based on observed behaviour

3rd PARTY

DERIVED

Web

PCookies

Flash Cookies

Beacons

• Web behaviour

• Click-stream data

• Location/ IP Address

• Shopping Basket

data

• Interests

• Preferences

• Aggregated

demographics &

geo-demographics

• Web behaviour

• Click-stream data

• Location/ IP Address

• Shopping Basket

data

• Interests

• Preferences

• Aggregated

demographics &

geo-demographics

Data acquired on consumers

via 3rd party Social Media sites

(and intermediaries)

3RD PARTY

VOLUNTEERED

Social

Media

A

Brand

• Personal details

• Network Size

• Location

• Brand affiliation

• Comment

• Sentiment

• Personal details

• Network Size

• Location

• Brand affiliation

• Comment

• Sentiment

Data derived about consumers

or customers based on

observed behaviour

WEBSTE

ESP

WEB ANALYTICS

P

• IP Address

• Cookie data

• Browsing history

• Screen Resolution

• Email Behaviour

• Email Provider

• IP Address

• Cookie data

• Browsing history

• Screen Resolution

• Email Behaviour

• Email Provider

CONSUMER

DERIVED

Personal data provided to an

organisation directly by

consumers or customers

CONSUMER

VOLUNTEERED

A

WEBSITE

• Contact Details

• Preferences

• Purchases

• Location

• Personal Data

• Privacy Options

• Reviews

• Brand sentiment

• Contextual data

• Brand Engagement

• Likes/ Dislikes

• Contact Details

• Preferences

• Purchases

• Location

• Personal Data

• Privacy Options

• Reviews

• Brand sentiment

• Contextual data

• Brand Engagement

• Likes/ Dislikes

Conversational

Marketing

Open

Networks

Amplification

APIs

Social

Networks

Augmented

Reality

Sentiment

Monitoring

Tradigital

Marketing

Marketing language is rapidly changing…

Communities

FROM

6 week reaction

One to Many

Push

Data assimilation

…consumer expectations have increased

Single Channel

Muted

TO

0.06 second reaction

One to One to Many

Pull

Customer dialogue

Multiple Channels

Loud

PULL

Brands need to record, link, monitor and

utilise relevant data collected from inbound,

outbound and intra-consumer conversations,

across all relevant channels to drive better

conversations and therefore have deeper

customer relationships

PU

SH

Acquisition RetentionGrowth

Engage

Amplify

Influence

Marketing models have to (and are) adapting

Familiar challenges still exist

A lot is known about a few

Data rich; insight poor

Brand centric data, not user centric-data

Data held in organisational silos

Organisational planning still product, not consumer focussed

Picture: viiphoto.ning.com

Have we lost our privacy?

Where next?

• Consumer digital is increasing and will only increase

• Digital data market is changing rapidly – often daily

• Whether social, web behaviour, email behaviour, Open ID or all – no brand is

impervious & you’ll already be collecting this data

• Increasingly more difficult for marketing organisations to help clients have

coordinated ‘direct’ conversations with their customers

• Permission management still key

Jonathan Burston

Sales Director, Integrated Marketing Group

T: 020 7065 6137

E: [email protected]

@jonathanburston

From mad men to math men: A

look at the current

transformation of the marketing

industry

Gregory RoekensChief Technology Officer, Wunderman

Closing comments from the

chair

Terry HuntChief Executive Officer, Customer & Co

Thank you for attending

To see a list of upcoming events please visit

http://www.dma.org.uk/event-listing

The DMA conference 2012

Technology

Transcript of The DMA conference 2012