The Forrester Wave: Marketing Measurement and Optimization Solutions, 2016

Jim Nail

Gone are the days of marketing mix providers.  So long cross-channel attribution technologies.  There’s a new sheriff in town—Marketing Measurement And Optimization Solutions.

Today, Tina Moffett and I are excited to publish The Forrester Wave: Marketing Measurement and Optimization Solutions, 2016.  The 2016 Marketing Measurement and Optimization Wave combines the previous Marketing Mix Modeling Wave and Cross-Channel Attribution Wave.  This report evaluates 10 vendors on current offering criteria, strategy, and market presence. 

Why did we take this “unified” approach to marketing measurement?  Customer data deluge is putting pressure on marketers to measure the effectiveness of ALL marketing initiatives, across each customer.Marketing mix modeling and cross-channel attribution each provide deep marketing performance insights but each fell short in providing what marketers urgently need: a singular view of marketing performance.

Over the past 18 months, Forrester saw a dramatic shift in solutions; traditional marketing mix modeling measurement providers were investing in technology and methodology develop for attribution and we dubbed this “Unified Marketing Impact Analytics”

This inaugural wave helps marketers make sense of this complex landscape of top providers in the measurement space. By virtue of offering a unified approach today, these 10 vendors are the creme de la creme. We expect to see this landscape evolve, with new players entering into the space and mainstays evolve their core offering even further.

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The Forrester Wave: Marketing Measurement and Optimization Solutions, 2016

Tina Moffett

Gone are the days of marketing mix providers.  So long cross-channel attribution technologies.  There’s a new sheriff in town—Marketing Measurement And Optimization Solutions.

Today, Jim Nail and I are excited to publish The Forrester Wave: Marketing Measurement and Optimization Solutions, 2016.  The 2016 Marketing Measurement and Optimization Wave combines the previous Marketing Mix Modeling Wave and Cross-Channel Attribution Wave.  This report evaluates 10 vendors on current offering criteria, strategy, and market presence. 

Why did we take this “unified” approach to marketing measurement?  Customer data deluge is putting pressure on marketers to measure the effectiveness of ALL marketing initiatives, across each customer.  Marketing mix modeling and cross-channel attribution each provide deep marketing performance insights but each fell short in providing what marketers urgently need: a singular view of marketing performance.

Over the past 18 months, Forrester saw a dramatic shift in solutions; traditional marketing mix modeling measurement providers were investing in technology and methodology develop for attribution and we dubbed this “Unified Marketing Impact Analytics”. 

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Salesforce Closes their Marketing Cloud Gap with Krux

Susan Bidel

Posted in collaboration with Richard Joyce and Joe Stanhope, with Melissa Parrish.

 

With 150,000 customers, Salesforce, one of the world’s largest providers of customer relationship management (CRM) technology, is a trusted steward of its clients’ first-party customer and sales data. In acquiring Krux, a data management platform that ranked as a Leader in Forrester’s November 2015 Data Management Platform Wave, Salesforce supplements its capabilities with more substantial analytics, artificial intelligence tools, marketing data, and digital audience capabilities and positions itself as a significant competitor to other marketing cloud vendors like Oracle and Adobe. This is a smart acquisition for Salesforce, as Krux is a well regarded vendor in the DMP space, and it fills in a increasingly obvious hole in their Marketing Cloud offering.

The Krux buy, came in at a reported cost of $700 million, according to the Wall Street Journal.just about double the cost to Oracle of BlueKai 18 months ago. The DMP aggregates, normalizes, segments, and syndicates data for approximately 200 marketers and publishers, making 1st, 2nd, and 3rd party data available for marketing and advertising .

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Here Are Your Native Advertising Options Mapped Out

Ryan Skinner

Native advertising corresponds to many types of advertising, from paid search and social ads to the sponsored editorial offerings from media companies. Put simply, it’s confusing as hell to understand.

Success at native means both the user of a media site or app and the advertiser explicitly get value out of the experience. To understand if a particular kind of native advertising is going to be successful, marketers should assess four criteria: Format, reach, context, and identification.

The seven core types of native advertising** all function to varying degrees against these criteria.

For example, the paid search ad is a proven format that generates a reasonably predictable response rate; an in-feed ‘click to play’ cinematograph will be less predictable, and probably less reliable. Pinterest’s promoted pins provide considerable reach for some populations; a native ad appearing programmatically in apps and targeted for a specific behavior may have far lower reach. Likewise, there’s wide variety for context and identification.

To help marketers make smart decisions, we broke down all seven native advertising types against these four criteria, and explored compelling examples of each. For Forrester clients, have a look at the analysis – our Vendor Landscape: Native Advertising Technologies, Q3 2016. Not a client? This’ll have to do as a teaser. 

*** those seven types: paid search, paid social, in-feed exchanges, native ad vendors, publisher networks, publisher-specific custom native, and influencer activation.

The Trust Crisis in Advertising

Jim Nail

Facebook's admission that their video viewing numbers have been inflated for two years is one more shoe dropping in an ongoing breakdown of the relationships between advertisers, agencies and media companies in the advertising ecosystem. Coming after the ANA's work on transparency, and the unresolved issue of fraud in the programmatic ecosystem, this points to a larger, more fundamental problem in the advertising industry.

I won't try to diagnose them all (my colleague Sarah Sikowitz did a good job on the agency transparency issue on her blog). And I won't even go into the fact that the agencies didn't challenge these bogus counts. 

But I have a word of advice for the digital industry: stop obsessing over bits and pixels and clicks (Oh My!). I've been in digital for 20 years and by now the industry should have learned that no matter how readily available this data is, it is meaningless relative to what advertisers really want to know: is my message getting through and having an impact? I may sound old fashioned, but in contrast to these irrelevant, spurious, and potentially inflated data, I'll take a good-old exposed/unexposed ad communication/awareness/attribute association/purchase intent lift survey any day.

True, I give up the individual-level data the digital prides itself on. But if the data is this weak and subject to manipulation, it is at best an inaccurate view of ad performance and likely to be downright misleading.

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The Future Of Messaging Apps

Thomas Husson

Two years ago, Forrester made the claim that mobile was the new face of social. With more than 3 billion users worldwide, messaging apps demonstrated one of the fastest-growing online behaviors and passed social networks. The reach of these apps is huge, which presents a strong relationship promise for marketers.

From Line’s IPO to WhatsApp’s new privacy policy via Snapchat’s latest offerings or Facebook Messenger’s bots, messaging apps make the headlines. Together with my colleagues Xiaofeng Wang and James L. McQuivey, we have digged into this consumer phenomenon to better understand the opportunities it will unlock for marketers in the coming years. We expect messaging apps to play a key role throughout the customer life cycle but more specifically to enable brands to deepen conversations with their customers during the retention phases. Why? Because messaging apps combine the three keys to powerful relationships in any digital environment: frequency of use, emotional connection, and convenience.

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Marketers, Let's Talk: Pinterest Is Not A Social Network

Jessica Liu

We’ll let you in on a little secret: Pinterest isn’t what you think it is. When Pinterest emerged, it was immediately labeled as a social network alongside Facebook, Twitter, Linkedin, Instagram, and even the ill-fated Google+. Why? Because we as humans like to categorize things and also because Pinterest shares a few key features with social networks, such as user authentication and the ability to create, post, like, and share content. This led marketers to believe that they needed yet another always-on brand presence on Pinterest and dedicated social budget to engage with customers on an ongoing basis. 

The reality is that Pinterest is not a place for customers to engage with brands like they do on other social networks. Rather, Pinterest is better suited for discovery and for helping consumers find information, ideas, products, and services. Marketers know to go to Google to increase their brands' visibility and awareness but don't think about Pinterest in the same way —  and that's a mistake. Don't get us wrong; we're not saying that Pinterest is the next Google. But Pinterest is taking steps that make it more Google-like with its intent-based search and auctioned-based ad pricing, all while maintaining vestiges of a social network.

To learn how marketers can take advantage of Pinterest as a discovery tool, read Collin Collburn's and my full report here.

Email Vendor Acquisitions Signal The End Of Standalone Email Service Providers

Rebecca McAdams

*This blog post was written in collaboration with Shar VanBoskirk

Over the last year, we’ve seen a number of new acquisitions in the email marketing space.  Specifically:

  • European cross-channel campaign management vendor Selligent and Silicon Valley email service provider Strongview were acquired and combined by Private Equity Firm HGGC
  • Marlin Equity Partners acquired Teradata’s Digital Marketing Center -- the part of Teradata which includes former eCircle, Ozone Online for agency services, and Argyle Social --  and mid-market ESP BlueHornet, which was previously part of Digital River
  • Vista Equity Partners picked up B2B marketing automation vendor Marketo
  •  And most recently Zeta Interactive added Acxiom Impact to the eBay Enterprise assets (the old eDialog, for those of you keeping track) it acquired last year
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Programmatic TV and Data-Driven TV Planning: Untangling Facts From Fiction

Samantha Merlivat
The explosion of TV channels, on-demand content and OTT services continues to erode audiences. On the whole, Forrester’s Technographic data shows that consumers in EU5 countries (UK, FR, DE, IT, SP) watch on average as much TV in 2016 as they did in 2014. But the split is shifting in favor of online TV, in particular among millennials which will become increasingly difficult to reach through conventional linear TV media plans.
 
The fragmentation of TV content across sources shrinks audience sizes, and makes TV planning inefficient. Programmatic TV could be the answer to cross-screen, audience based planning, but the road is long and paved with obstacles. Programmatic buying is penetrating pockets of broadcaster inventory, but the level of implementation varies across countries, across broadcaster and across inventory type. The big question, of course, is whether programmatic ever makes it to linear TV advertising and becomes a viable tool to plan TV campaigns.
 
What is often missing from this discussion is the journey TV broadcasters have embarked on to collect and activate audience insights across their properties, and the wealth of data that is already available to test or experiment with audience-based buying within their inventory.
 
In the “European Marketers Get Ready For Data-Driven TV Planning" report, I break down how various TV / video inventory types will transition to different forms of programmatic over time, and explain why marketers will not have to wait for programmatic to infuse data intelligence into their TV media plans. Read the report to find out commonly missed opportunities in terms of audience optimization in TV planning.

Understanding The Global Digital Marketing Landscape

Brandon Verblow

Welcome to my blog!

I joined Forrester earlier this year as an associate forecast analyst on the ForecastView team, focusing on digital marketing (DM) topics. The ForecastView team’s goal is to answer the questions “How much?” and “When?” To this end, we publish five-year forecasts that provide forward-looking, quantitative guidance around the key issues that our research analysts are discussing as well as the important trends that Forrester’s Technographics® survey data reveals. To learn how our forecasts can help you with your investment decisions, see our ForecastView overview.

On the DM forecast team, we evaluate various facets of the digital marketing space, including online display, online video, social media, paid search, email marketing, mobile advertising, and ad tech.

Our latest report, the Forrester Readiness Index: Digital Marketing, 2016, touches on many of these areas. In it, we quantify the digital marketing readiness of 55 countries across six continents based on data collected for 23 variables — ranging from display, search, and social ad spending to per-capita online traffic and video consumption to penetration rates for PC, smartphone, internet, and broadband usage to GDP growth, number of businesses, and the percentage of businesses selling online. It provides one of the most comprehensive and digestible evaluations of the global digital marketing landscape available in one place.

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