old mag, new tricks: the economist drives relevancy & results using data science &...
TRANSCRIPT
Steve LokHead of Martech & OpsThe Economist
OLD MAG, NEW TRICKS:The Economist Drives Relevancy & Results
Using Data Science & Persistent Profiles
#MarTech
I HAVE A SECRET.I am a 62 year old British woman.
< $20,000
> $500,000
Single
But I'm also married with 1-3 teens and 2-4 toddlers
(so that’s where all my money goes?)
I'm also a 39 year old American man.
WEARE
LIVINGINANERAOF
MISTAKEN IDENTITIES
OUR CORE VALUES: ACCURACY &PREDICTION
DIGITAL TRANSFORMATION SAYS WHAT?
The Economistis a
(Profitable)
Newspaper
Traditonaladvertising was
not exactly a growth area
$65.8B
2000
$23.6B
2015
WE NEEDED MORE PROSPECTS
73 Million“Globally Curious”
> $500k salary
Single
WE LEARN — AS OUR READERS LEARN
> $500k salary
Single
WE NEEDED A CUSTOMER PLAYGROUND
Triangle of Growth
Warning: POWERFUL TRIANGLES
DMP(3rd party data
management platform)
2014
Programmatic(2nd party data)
2015
CDP(1st party customer data
platform)
2016
Opportunity2017
EVOLVING TECH
> $500k salary
Single
1:1 EXPERIENCE:POWERED BY ONSITE BEHAVIOR
AND DATA SCIENCE
Likely to subscribe
Content Affinity for Brexit
WHAT WE BUILT
DEEPER, MORE CUSTOM CONTENT HUB AROUND KEY TOPICS
> $500k salary
Single
WHAT WE BUILT
TRUMP BREXIT FRENCH ELECTION
WIN
Journey
Customer Knowledge
Location
Behavior Patterns
Product Relationships
Preferences
Channel Consistency
Processes and UI
PERSONALIZATION
One to One
One to Few
One to Many
Foundation
CONTEXT
Source: Adapted from Gartner report on Personalization, June 2015
USER CONTEXTCOMPREHENSIVE PROFILES
Apps
Media Touch Points
CRM Data
Customer Data
Leads / Email /
Call Center
Websites
HOW WE POWERED IT
INTELLIGENT PROFILESWITH DATA SCIENCE-BASED INSIGHTS
Data-agnostic
Structure-agnostic
Source-agnostic
• 1st Party
• 2nd Party
• 3rd Party
Behavioral Scoring“High Momentum”
Predictive Insights“Likely to engage”
HOW WE POWERED IT
CONTENT CONTEXT:DATA SCIENCE-BASED USER AFFINITIES
HOW WE POWERED IT
AI-DRIVEN, CONTENT CONTEXTUALIZATION
Propensity to Subscribe
Source: Adapted from OpenTopic & IBM Watson on Cognitive Marketing, 2015
PREDICTIVE AND PROPENSITY:From Ad-Click to Subscribe-Click
Complexity of Intent EYE KNO YOU
Customer Intelligence Capability
COMBINING IT ALL
Likely tosubscribe
Local story based on location
Custom video list
Profiled Video
Depth content based on
content affinity
Discovery content
We quadrupledsubscription
revenue in 3 years~$9M
2013
>$60M
2017
13x INCREASE martech budget in
3 years$150k2014
>$2M2017
Programmatic Principles Cause a Seismic Shift in
Revenue
62%
2013
35%
201638%
2013
65%
2016
CASE STUDY:MILLENNIALS CAMPAIGN
GOAL: INCREASE AWARENESS AND SUBSCRIPTION ADOPTION WITHIN YOUNGER DEMOGRAPHIC
> $500k salary
Single
STEP 1: TARGETED LYTICS AUDIENCES
+ Email: ending with .edu+ Data enrichment: IP Addresses of US/UK University+ Title: Student, Intern, or Grad Student+ Predictive Modeling:
High propensity to become premium subscriber
- Exclude: Current subscribers (and low propensity prospects)
(not channel-first, or ad platform-first)
> $500k salary
Single
STEP 2: FIND INDIVIDUALS ACROSS DIGITAL
True Multichannel Campaign • Facebook• Snapchat• Google ads
It works: 35% of ad-driven subscriptions by
millennials
> $500k salary
Single
STEP 3: ON-SITE PERSONALIZATION
Hold Up!Free Megatech Book!
This works too:• 9% Click through rate• On-site conversion rates
for targeted audiences? 5-10x higher
TL;DR: SMARTER, MODELED AUDIENCES WORK
ROAS
[ [
BAU Segments:$2.89
Lytics Segment:$3.95
EFFICIENCY LEVEL UP!37% Improvement on Return On Ad Spend
ROI? YOU BETCHA.< 1 month payback on CDP investment
COST PER ACQUISITION (CPA) WINS: GO LOW
Data-agnostic
Structure-agnostic
Source-agnostic
• 1st Party
• 2nd Party
• 3rd Party
• MORE EFFICIENT PPC:43% BETTER ROAS
• CONVERSION RATE IMPROVEMENTS:NEAR 200%
• SCALE:13% OF SEARCH CONVERSIONS
[ [
Business As Usual Audiences
$35
Lytics-Powered Audiences
$20
CPA
1. Data Science as a commoditized utility – services for sale
2. Major movement in brands to own their own customer data and tech stacks (+GDPR)
3. Programmatic Orchestration – from Ads all the way to TV and Outdoor, to paper and post direct mail
4. Shifting to audiences of ONE and away from channel-based measurement, optimization and planning
2018: PROGRAMMATIC IS PERSONALISATION
COLOR THAT FOR ME: WHAT NOW?
GoshDarnPrivacyRights
GeneralDataProtectionRegulation
1. Companies: From “guidance” to “regulation”
2. Customers: From participants to owners
GDPR: SHIFTING ATTITUDESUK/EU to US: “Please, take this seriously. Please.”
YOUR CHALLENGE?
CHAOS vs. CUSTOMER
REINVENT THE WHEEL
CDP
Steve LokHead of Martech & OpsThe Economist
[email protected]#MarTech
OLD MAG, NEW TRICKS:The Economist Drives Relevancy & Results
Using Data Science & Persistent Profiles