McKinsey: Solving the CEO Social Media Riddle – My Comments #Socialmedia #leadership

Source:McKinsey

McKinsey: Solving the CEO Social Media Riddle

My views:

If we go back in time and look at corporate adoption of email, (as per John Markoff) when Bill Gates mentioned in a New York Times panel discussion that he runs Microsoft using email, it seems people were shocked. In general people were not keen to embrace it, even though it was faster, no risk, productive etc.

If we look at Social media, the first issue is people think its an additional area to spend time on – what they find difficult to accept is, its the new way of life where social is getting fused into their old way of life. Then you have all types of other reasons – lack of time, risk involved to their image, saying something which is original( not prepared by someone else for them) etc. The first step is to accept the new normal, then perhaps take baby steps – try it within a closed group, then keep pushing the boundaries and go truly social. Its better to try it out yourself instead of being forced into it and playing catch-up.

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#McKinsey: Agency Upheaval? Something’s Gotta Give – My comments #Technology #Leadership

Agency Upheaval? Something’s Gotta

Great post David

I think technology is driving hard in 3 key areas

1/ Demand side is pulling in Supply side – ie Agencies members pulled into client side, journalists joining corp.comms, similar to what happened when Desktop publishing came. This includes consumers pulling in marketing/branding/pricing and others areas from the supply side into the demand domain forcing supply side to become enablers and aggregators.
2/ Reduced barriers for start-ups – the number of tech start-ups have just shot up, though some are getting acquired by large companies, customer impact tech is exposing the rigidity of larger companies when it comes to adoption, again giving the edge to start-ups
3/ Replaces/pulls in other products/services in – Digital camera, credit cards, car keys, TV remote etc are getting replaced/pulled in by smart phones

Technology ‘Empowers’ and ‘Levels’ things.

Innovation is not a differentiator any more: My comments on Forrester’s Business model & Brand for Innovation

Forrester’s article

Here are my thoughts –

Business model:

There are 3 aspects to business mode – create, capture & deliver value. Lot of companies seem to be thinking mostly about the ‘delivery levers’ of value creation within the business model context, and they are leaving out value creation and capture from their customer experience strategy. There was so much talk about omni-channel and seamless experience etc, which is fine, but for continuous Innovation, companies need to focus on the create/capture phase as well.
My blog: 5 Steps To Success on the Customer Experience Management Journey –http://blogs.sap.com/innovation/sales-marketing/5-steps-to-success-on-th…

Innovation is no longer a differentiator, Innovation stickiness is – Time to market has a younger cousin now – Time-in-market
http://scn.sap.com/community/business-trends/blog/2013/05/20/innovation-…

Brand:
Brand managers have to move from message ‘communicators’ to message ‘interaction enablers’ and/or aggregators, which means giving up control. This bring market insight into the company instead of going into the market and searching for it. The intersection of intellect and insight is what triggers the Innovation spark.
My Blog: Social CRM Transformation And The Path Ahead http://blogs.sap.com/innovation/sales-marketing/social-crm-transformatio…

 

TED Weekends investigates why we judge others

Nice insights here,

I’ve always thought there are 2 angles to any human behaviour – Nature & Nurture. We saw the Nature part in this video.

When done well, the outcome is ‘Empathy’, done not so well, we have ‘Apathy’.

I wish replacing ‘A’ with ‘Em’ is as easy as it is in Microsoft word 😉

Ramesh
Twitter @Ramesh_Ramki website http://www.futuristCMO.com

TED Blog

Above and slightly behind your right ear, exists a part of your brain many scientists believe is specifically dedicated to thinking about other people’s thoughts – to predicting them, reading them, and empathizing with them. It’s called the temporoparietal junction, and this is the area cognitive neuroscientist Rebecca Saxe focuses on in her research.

[ted_talkteaser id=630]At TEDGlobal 2009, Saxe delves into our amazing capacity to identify and predict others’ emotions and actions, and how this ability is learned throughout childhood. This skill serves an important function in human relationships – we learn how to fill in the unspoken blanks between what someone is thinking and how they are presenting themselves. This is what allows us to glance at a photo of someone and be able to know what she is feeling.

Saxe’s talk is this week’s featured idea for TED Weekends on the Huffington Post. Below, find essays…

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My Blog: Programmatic Buying And Its Impact On Marketing

Programmatic Buying

Programmatic Buying And Its Impact On MarketingThe future is bright, loud and fast! We know that the global audience is spending more time connected to digital media, hyper-communicating their likes, dislikes leading to too much information.

With media buyers now moving their budgets to new areas such as display, standard pre-roll etc, media buying is increasingly happening in an automated fashion through digital platforms (eg. exchanges, trading desks, DSPs), replacing traditional routes of RFPs, negotiations, insertion orders.

In today’s SoLoMo(social-local-mobile) context and emergence of interactive media, data is gold as it’s associated with audience, ad delivery, commerce and must be available in near real-time to enable dynamically informed buying decisions, this means for large scale operations In-memory computing, Big data analytics, Cloud can make a significant difference.

Positive digital interactions with customers, prospects can propel company growth and this brings the focus onto four major parameters such as ROMI (Return on Marketing Investment), Data compliance & Analytics, Technology advancement, Company culture (shown in the diagram ) that can influence the maturity of Programmatic buying (PB). Here is some background reading on Programmatic advertising.

Impact of programmatic buying on marketing operations and Media holding company model

Marketing operations will become more efficient and can build a strong foundation based on metrics, best practices for campaign optimization, funds (forecast, reconcile and reallocate), performance reporting. There is a good chance of better campaign ROI not only because of media performance or better targeting but also because of the price squeeze, man power reduction due to better tools. Positive experience and results from the digital media will, overtime, influence marketing operations team to increase their expectations from traditional marketing channels.

Large media holding companies have been buying-out leading digital media agencies to keep up with the trend of budgets swinging towards the digital wave. With increasing transparencies and a shorter value chain, a considerable portion of the media industry is set to become a high-volume, low-margin business model (similar to supermarkets) with pricing models moving towards ROI basis instead of activity based pricing.

Customers could end up expecting similar transparencies, ROI in traditional media channels. Also with better customer platforms (DSPs), this industry will witness something (rollback buying etc in-house) similar to what happened to the publishing industry in the 80’s when desktop publishing came, lot of publishing was rolled back in-house.

Positives and negatives of programmatic buying for marketing organizations and CIO’s

Positives

Programmatic buying increases the effectiveness, efficiencies of marketing organizations and increases the probability of bringing the right message to the right audience at the right time.  Today’s CMOs and CIOs have a vital role to play as enablers by leveraging integrated customer information to make consistent customer interactions across channels a reality. Similar to MDM, CDI (Customer data Integration) projects, programmatic buying could trigger data integration across first, second, third party online and offline sources in a unified manner.

Negatives

Targeting precision, ad relevance can bring a creepy feeling to customers who think they are being followed and publishers are trying to keep premium inventory in private exchanges to protect margins and brand. Non-compliance of cookie legislation could attract a penalties (this of course is evolving globally with governments getting involved) and lawsuits, giving more problems for the CIOs and their legal colleagues which could in turn slowdown data integration projects.

In case you are interested to have an overview of the Programmatic buying landscape , here it is:

Functionality and trend Benefits
Supply Side Platform (SSP) – enables publishers
  • Options across proprietary optimization algorithms (Admel) vs manual or own optimization technology (ApNexus)-
  • Increasing breadth across ad format acceptance( from basic banner formats to mobile)-
  • New features such as private exchange, variable price floor controls, anonymous participation, advertiser-level bid reporting, audience data management
  • Better packaging, positioning of media to buyers-
  • Increased monetization, operational efficiencies, multi-channel optimization-
  • Gives better control and protection to publishers worried about premium inventory or brand association with certain advertisers.
Ad exchanges – facilitates bidded buying/selling connecting multiple ad networks
  • Self-service, backend platforms enables log-in, set-up, manage campaigns, run analytics and optimize without even talking to a sales person-
  • Verification systems validate and stop an ad loading if content is not as per advertisers preference( avoid violent, competitor content etc)-
  • Some allow buyers, sellers to participate, some allow only ad networks-
  • Advertisers have visibility on the site, ad unit and publishers have visibility on which advertisers are buying their inventory and what they are willing to pay-
  • Some exchanges allow floor price settings, offering a risk free proposition for publishers ( ad networks don’t tend to offer this)
  • Encourages competition and drives up ad space price per impression, as each impression is valued-
  • Ad exchanges are different from ad networks that often sell at a lower eCPM to close high volume sales or may not be in a position to quantitatively compare different ad buy offers.-
  • Visibility for publishers help them control what advertisers and creative’s they want to encourage on their sites.-
  • Few intermediaries in the value chain offer ad budget savings
Demand Side Platform (DSP) – enables buyers
  • Advancements in expertise across algorithmic optimization, knowledge of audience management, breadth of media access, unified campaign tracking and reporting-
  • Leading vendors have more than 50% of the impression volume RTB enabled.
  • Buyers prefer a single platform  that is operationally efficient to access, manage and report inventory supply and campaigns across display, mobile and video
Real-time bidding (RTB) – enables real-time selling/buying one ad impression at a time
  • 2009 onwards, ad exchanges and SSP’s announced RTB support bringing a surge in activity from DSP’s, ad networks, agency trading desks and other media intermediaries.-
  • The EU cookie directive which came into effect in May 2011 can bring some challenges to data collection, usage and in turn affect RTB growth.
  • RTB’s have cut inefficiencies in the media buying process, offers de-duplicated reach and can cap the number of impressions that audiences would see in a particular campaign-
  • RTB is an efficient way to buy impressions in real time, having an engine that calculates real time prices can really transform results for advertisers.
Data management platform (DMP) – the audience intelligence engine
  • DMP creates a single view of the user by aggregating data across first, second, third party online and offline sources in a unified manner, including segmenting and tagging.-
  • Leading organizations are building rich user information as a differentiator in an increasingly crowded online advertising area
  • Interactive marketers now have an opportunity to leverage DMPs and run audience based marketing campaigns more effectively than ever before, however, for DMP initiatives, the time and effort required to pull various departments together, such as IT, legal, CRM cannot be underestimated.

 You can follow me on Twitter @Ramesh_Ramki

Forbes: Your Brand As An API: Why You’ve Lost Control Of Your Messaging – my comments #Branding #Marketing

Forbes: Your Brand As An API: Why You’ve Lost Control Of Your Messaging

Brand managers need to move away from the message create/distribute mode to enable/aggregate mode, in a way mirroring how business models are changing along these lines.

The early days of experimenting with social media programs are over; the focus now is not only about fans and followers but also about customers and advocates (Social CRM Transformation and the path ahead ).

Companies have to implement something what I call Total Customer Experience (TCE) similar to Total Quality Management, good customer experience wont happen in isolation by front line folks (5 Steps To Success On The Customer Experience Management Journey)

 

Are Machines On The Net Making Humans Obsolete?

Forbes: Are Machines On The Net Making Humans Obsolete?

I believe ‘Creative’ humans on the net are making ‘non-creative’ ones obsolete.The New Normal is Create & Consume not Create OR Consume.

The Industrial Age was about efficiency, whereas the Information Age is about effectiveness. If people are not contributing to the effectiveness value chain and being only on the consumption side of the value proposition, then they are moving towards the edge, of course the rate of this varies across industries/countries.

Twitter: @Ramesh_Ramki

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