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Bruce Biegel, Managing Director, Winterberry Group: The transition from traditional marketing to integrated marketing.
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Bruce BiegelBruce Biegel
Marketing Transformation:The Path to Real Time
Integrated Marketing
Marketing Transformation: A Path to Real
Time Integrated Marketing
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Bruce Biegel
Managing DirectorApril 7, 2011
New York City, New York
Winterberry Group: Helping Advertising and Marketing Companies
Grow Profit and Maximize Shareholder Value
Strategic Consulting Investment Banking
• Market Intelligence • Buy-Side/Sell-Side M&A
Representation• Corporate Strategy
• M&A Transaction/
Diligence Support
• Industry Insight:
Publishing &
Tactical Execution
Representation
• Capital Raising & Private
Placements
• Corporate Divestitures
• Fairness & Valuation
Opinions
Economic stabilization drives growth in
marketing investment
• Consumers do not really care about being in
control*
• 30-35% of media now consumed via digital
channels
2011: Marketing In Transition
channels
• Privacy regulation and internet tax issues
dominate the legislative agenda
• Everything is NOT about social/mobile – it just
seems that way
*Razorfish Liminal report 2010
Secular Spending Decline Across Traditional Channels Continues
2011E U.S. “ATL” Advertising Spending $112.6BB
Radio:$13.4BB
Outdoor:$6.4BB
Cinema:$0.6BB
-0.2%
5.0%
2.0%
Television:$55.4BB
Newspapers:$22.4BB
Magazines:$14.3BB
-2.2%
-4.2%
Source: WG Analysis, 2011
Note: Arrows reflect percentage change in
spend, by channel, from 2010 levels
-1.7%1.7%
Direct & Digital Channels Capture New and Shifting Spend
2011E U.S. “Direct & Digital” Advertising Spending $163.9BB
Direct Mail:
DR Print:$15.3BB
Other:$2.8BB
Insert Media:$0.9BB9.1%
10.9%
2.0%
5.8%Direct Mail:$47.8BB
Teleservices:$40.1BB
DR Broadcast:$25.4BB
Digital:$31.6BB14.0%
Source: WG Analysis, 2011
Note: Arrows reflect percentage change in
spend, by channel, from 2010 levels
7.6%
1.6%
6.2%
5.8%
Then We Have an Information Explosion…
All data created from the dawn of man (~200,000 BC) to 2003…
5Exebytes
5Exebytes
VS.VS.
Source: Eric Schmidt (Google), NextMark
VS.VS.
Data created in
TWO DAYSin 2011…
5+Exebytes
5+Exebytes
… That Will Not Stop in Our Lifetimes
One petabyte = one million gigabytes
• Can fill 75-billion Apple iPads
• Equal to output from a century's worth
of constant tweeting by all humans
2009
800 Petabytes
2009
800 Petabytes
One zettabyte = one million petabytes
• Equal to a million times the size of the
entire collections of all the academic
libraries in the U.S.
Source: IDC Survey (2010)
2010
1.2 Zettabytes
2010
1.2 Zettabytes
Browser/Analytics Data
Psychographic and behavioral
compiled from surveys and
analytical modelsSocial compiled from
social sites, blogs and
sharing sitesOffline
Compilers
Transactional added from
purchase records, cooperative
databases and eCommerce
Social Sites /
Online
Providers
Offline
Providers
?
Some of This “Big Data” Is Marketing Data…
Geo-
Demographic
compiled from
publishers, datab
ases and other
third parties
Browser/Analytics Data• Registrations
• Cookies (Flash)
• Click / Visit activities
• Attribution /response data
• In-market purchase intent
Artwork Source: David Harbaugh, Harvard Business Review
PublishersPortals /
Online
Compilers
?Mobile
• Carrier / Location data
• App data
• Device fingerprints
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… And The Rest Is Online Content And Marketing Assets
Web Content - Sites and Pages
• Billions of pages – mostly HTML (or a
variation) – containing data, applications, e-
services, images, audio, video, social
interaction, log files and many more forms of
produced and consumable information
Source: IDC Survey (2010)
Marketing Content (Marketing Assets)
• Brand images, graphics, copy, notices and
other content (e.g. animations, videos and
music) used in advertising and promotional
campaigns or other marketing messages
How Should You Cut Through This Constant Stream of “Data”?
Marketing in Transition
Define a Path with Personalized, Real-Time
Marketing Interactions
Source: U.S. Bureau of Economic Analysis (BEA)
Marketing Interactions
What Do Customers Want in Their Interactions with Marketers And
Publishers?
Empowered by multiple devices and
better information accessibility, consumers
expect interaction in real-time, across on
and offline channels
• They want what they want
• They want it personalized
• They want it available when they want it
• On any device they prefer
And do not be creepy about it!
What Do Marketers and Publishers Want in Their Interactions with
Customers ?
� Sales
� Loyalty
� Positive Recommendations
� Patience
� Sales for Their Partners
� Relevancy� Relevancy
� Likes
� Optimized Marketing Costs
� Recognition That They Are Really Good, Thoughtful People
� More Sales and Lots Of Profit
Think about your company’s high-level approach to its customer
interactions (including both consumers and “B2B” clients). How would you
rank the following as independent customer experience priorities?
Driving Sales Is A Primary Goal of Customer Interactions
3.8
4.0
3.8Ensuring we represent our brand/products well
Cross-selling different products/services to existing customers
Driving expanded sales of existing products/services
Source: Winterberry Group survey, “Customer Experience Marketing white paper, April 2011
2.8
3.6
3.8
3.8
3.8
3.8
1 2 3 4 5
Improving the performance of existing loyalty programs
Reinforcing our brand’s presence/importance to our customers
Enhancing customer loyalty to our brand/company
Maintaining an ongoing dialogue with our customers
Driving sales of new products/services
Ensuring we represent our brand/products well
h
Least Critical Priority Most Critical Priority
To what extent do you believe that your ability to achieve each of the
following would improve given the implementation of a well designed
customer experience strategy?
Marketers Want to Use Customer Experiences to Deepen Customer
Relationships, Rather as A Supplement to Other Marketing Efforts
4.2
3.8
4.0
Identify unmet customer needs
Identify trends in customer behavior
Deepen customer relationships
Source: Winterberry Group survey, “Customer Experience Marketing white paper, April 2011
3.3
3.5
3.7
3.8
3.8
1 2 3 4 5
Supplement loyalty marketing/loyalty program efforts
Supplement broader direct marketing efforts
Obtain real-time customer feedback
Create and deliver targeted offers
Identify unmet customer needs
Minimal Improvement
OpportunitySignificant Improvement
Opportunity
Marketing that is…
� personalized
� cross-channel
The Solution
� cross-channel
� integrated
� real-time
Source: U.S. Bureau of Economic Analysis (BEA)
• A real-time marketing system can support the execution of marketing intent under time constraints
• It contains hardware and software which are expected to
function without human intervention
And “Real Time Marketing” Means What?
function without human intervention
• It is designed to interact across devices and media channels nearly instantaneously
Source: U.S. Bureau of Economic Analysis (BEA)
Theoretically, This Ought to Be Straightforward…
Customer &
Prospect Lists;
Analytical Models
and Scoring
Processes
Data
Strategic Intent
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion Resp
onse M
easurem
ent
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
… But The Inherent Complexity of Products, Strategies And Cross-
Channel Campaigns…
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Versioning
Customer &
Prospect Lists;
Analytical Models
and Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Response M
easurem
ent
Customer &
Prospect Lists;
Analytical Models
and Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Models
and Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Models
and Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Response M
easurem
ent
Response M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Concept,
Brand Identity
and Design
Creative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Enhancement
of Existing
Customer
Relationships
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Creative
Strategic Intent
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Up-/Cross-Sales
Resp
onse M
easurem
ent
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Creative
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
Customer &
Prospect Lists;
Analytical Modelsand Scoring
Processes
Data
CreativeCreative
Strategic Intent
Strategic Intent
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Multichannel
Integration
CampaignExecution
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Up-/Cross-Sales
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Direct Order,
Traffic Generat.,
or Lead Gen for
Conversion
Up-/Cross-Sales
Up-/Cross-Sales
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Compliance
Strategic Concept,
Brand Identity
and Design
Strategic Intent
Enhancement
of Existing
Customer
Relationships
Resp
onse M
easurem
ent
Strategic Concept,
Brand Identity
and Design
Strategic Concept,
Brand Identity
and Design
Strategic Concept,
Brand Identity
and Design
Strategic Intent
Strategic Intent
Enhancement
of Existing
Customer
Relationships
Enhancement
of Existing
Customer
Relationships
Enhancement
of Existing
Customer
Relationships
Resp
onse M
easurem
ent
Resp
onse M
easurem
ent
Cross Channel Execution Fragmented Supply Chains
Mail Tracking and
Response Analytics
Impressions,
“Clickstreams,” Cookies
Defined Based
Production, Delivery
Cost plus Data Cost+
Post Office
Print Formats
Known
(via Individuals and
Households)
Direct Response
Performance? Reach?
Context?
Numerous:
(e.g. 400+ Ad Networks,
Ad Exchanges, etc.)
Variable Formats (e.g.
banners, videos, etc.)
Targetable
(by Person Or Computer)
Branding vs. Direct
Response
Pricing
Ad Delivery
Creative
Audience
Targeting
Campaign
Strategy /
Planning
••Direct MailDirect Mail ••Online DisplayOnline Display
Measurement &
Reporting
Manual
keying
Access/Excel
MS Excel
Billing
Management
Production
Customer &
Prospect
Data /
Analytics
Segmentation
Offers
(Relevance)
Offer Mgmt. Data
Manual
Entry
Manual
Entry
Artwork
doesn’t
match
specs
Production
Intent
…And An Ecosystem Defined by Silos And Broken Links…
Creative
Intent
Offer Mgmt.Creative
Business
Intent
Scheduling
(Timing)
Planning
External
Schedules
Production
Intenral
Creative
Routing
Production
External
Creative
Routing
Creative
Offer Mgmt. Creative
Supplier
Orders
Order Management
Creative
Assets
DAM
Manual
Handoff
Manual
Entry
Manual
Entry
….And A “Tug Of War” for Control Makes Personalized, Integrated,
Real-Time Marketing Incredibly Challenging
Marketers/Marketers/
Key Challenges:
Ineffectiveness of Display, Lack of
Valuation
Key Challenges:
Privacy/Data Security, Excessive
Advertising, Availability of Free Low-Cost
Content
Consumer/Consumer/B2BB2B
AudienceAudience
PublishersPublishers
Key Challenges:
Content, Media
The
ChannelsMarketers/Marketers/AdvertisersAdvertisers
Valuation Metrics, Difficulty of Execution, Threat of
Regulation
PublishersPublishers Content, Media Consumption, Traffic
& Monetization
SuppliersSuppliers
Key Challenges:
Commoditization of Creative/ Data
Services, Fragmented Media Market< Automation and
Broader Competitive Set
Channels
One Channel at A Time.
In Real Time
• Triggered Email Marketing
• Direct Mail Variable Data Printing
• Location-Based Social And Mobile Offers
Yet– We Are Seeing It Happen
• Location-Based Social And Mobile Offers
With Preference and Personalization
• Targeted Display Ads
• Recommendations Based on Recent Transactions/Browsing
History
Source: U.S. Bureau of Economic Analysis (BEA)
DSP
SSP
Align Marketing Processes, Platforms and People – With a Privacy
Compliant and Staged Approach
Marketing Data & Content Asset Layer
Real-Time Decisioning Engines
Ma
rke
tin
g E
xe
cuti
on
Pla
tfo
rms
Da
ta M
an
ag
em
en
t P
latf
orm
(s)
Integrated Data Management
Marketing Execution & Response
GeographicGeographic
DemographicDemographic
ChannelChannel
Site
Interaction
Engine
Lead
Scoring
SSP
Channel
Interaction
Engine
Yield
Mgmt.
Ma
rke
tin
g E
xe
cuti
on
Pla
tfo
rms
Da
ta M
an
ag
em
en
t P
latf
orm
(s)
Web Site
Data
Web Site
Data
Intent
Data
Intent
Data
Channel
Preference
Channel
Preference
SocialSocial
TransactionalTransactional
Technology Decisions Will Need to Be Made on Whether to Use Point
Solutions, Bundles Or Complete Stacks That Do It All
Direct Mail (Variable Data) Personalization
Site Ad Personalization
Site Content Personalization
Mobile Personalization
Cloud / Display Personalization
Cross Channel Response &,
Attribution Analytics
E-Mail Personalization
We are Getting Closer, But Are Not There Yet– This Is A Journey for
Marketers And Suppliers
Design a series of integration processes that are
actionable, replicable and compliant
This is a journey that marketing organizations and their suppliers will need
to take together over time – to begin the process:
Locate the marketing data and assets within the organization and
elsewhere
actionable, replicable and compliant
Determine what can and should be in-sourced and what should be
outsourced, and from where
Re-engineer the people and process components
Begin the step-by-step implementation roadmap, data platform
and analytic tools for “big data” and cross-channel marketing
… And DO NOT Forget!
It must be managed for a complex web of online and offline privacy
regulations, that will require Web sites and advertisers to:
Establish a clear “data governance plan”
Manage the collection of both personally-identifiable information
(PII) and non-PII (PII) and non-PII
Provide opt-out ability for advertising and content across channels
Continuously monitor preference, media shift and everything else
Bruce Biegel60 Broad Street, 38th Floor
Questions?
Bruce Biegel
Managing Director
60 Broad Street, 38th Floor
New York, NY 10004
www.winterberrygroup.com
