OPS London Live Blog – May 15

Check out what happened at the event

It may be pouring outside in London, but it’s pretty cozy at the Royal College of Surgeons, where AdMonsters is holding its 2012 OPS London event today, May 15. The main hall is full, where Jonny Shaw, previously a speaker at our OPS Mobile conference in New York, is elaborating on the role of “play” in building customer relationships.

Better Customer Relationships Are Built Through Play – Jonny Shaw, Master Chieftain at Naked Play (@JonnyRockUnit)

9.28 It’s a cliche to say we’re living in revolutionary times, but it’s true on a technological front, especially when we’re talking about mobile. This gives us a chance to very fundamentals of marketing – first off, move beyond the idea of marketing as war. The assault, the bombardment – it’s an outdated model, developed for the post-WW2 world.

9.31 The new model is based on relationships – a move from acquisition-based marketing. The acquisition side has been where the excitement has been, but the new sexy spot is relationship building.

9.33 Tech is an enabler, a context, a background, but not the revolution. Focus soley on tech and you’ll miss the greater marketing opportunity.

9.35 A trip to Japan, the “Galapagos of the mobile space.” Mobile was integrated into Japanese culture far ahead of others; through the late 90s novels were being written on mobile devices, gaming was growing in popularity, mobile commerce, etc.

9.36 Hello iPhone – tech journalists were completely wrong in predicting the Apple device would not take off in Japan. Why? Mobile had lost its way because the manufacturers had lost perspective when it came to user desires.

9.40 “What drives mobile business ultimately is consumer behavior, and the desire to play.” Consider the mobile device life’s joystick.

9.43 Time to give up demographic snapshots of consumers – overly simplistic and irrelevant. Think about, “What kind player is this person?”

9.47 Shaw & crew built a new “player” map relevant or the social/mobile era to target consumers as a behavioral set. The map is based on three axes:

  • Pleasure (proactive or reactive)
  • Problem-solving (intuitive vs. diligent)
  • Social tendencies (do you like learning by yourself or in a social environment)

9.50 Through this analysis eight kinds of players (behavioral sets) appear: Socialite, Habitualist, Collectivist, Soloist, Competitor, Strategist, Politician, and Scientist. Which one do you think you are? How do you think marketers would label you?

9.54 Understanding these behavioral sets opens up the way for new mobile engagement platforms. Shaw is working with Coca-Cola, breaking down their consumers to decipher the best way to engage with them.

9.57 You can tell a lot about a person by playing golf with them – golf leaves a huge personality trail, which is why businesspeople take each other out to golf, to understand them. Participating in a social (and/or mobile) game leaves a giant personality trail. Zynga considers itself an analytics company before a gaming company.

9.58 Playnomics – built for gaming space, uses real-time data to score users and predict behavior.

10.00 Using play as a transitional tool – embrace it as a core strategy, not a group of tactics. Also, think about the more holistic relationship rather than campaign-to-campaign. Finally, think global not local. Yeah, groan, but it’s true…

10.05 In traditional publishing, one of the most effective loyalty mechanisms was the newspaper crossword.

Demand-Side Platforms: The Renaissance of Display Media – Richard Wheaton, Managing Director at Neo@Ogilvy

10.20 UK is leading the growth in display ads – the growth is really in social, namely Facebook. Banner advertising outside of social is flat. 

10.24 It’s amazing the amount of waste that goes into finding efficiency in display buying –it’s something that’s gotta change. But what drives efficiency? Analysis showed that quality media needs to appear early in journey (75% more effective, even though more efficient); in the middle there’s a lot of wastage.

10.26 Third-party data used to target inventory was not effective for the upper funnel when it was not premium/high quality.

10.38 Layers of insight garnered from various data streams is incredible in building buys. More quality sites are appearing in the DSP space.

10.30 “Facebook and Google aren’t the enemy – they’re just soaking up the budgets because they have efficiency.”

10.33 Data is heavy lifting, but it builds agency expertise. Figuring how to link client data appropriately (time to expiration). “There are plenty of people in the retargeting space who are spamming the hell out of me.”

10.37 Key value of programmatic buying is the ability to predict behavior.

Breaking Down the Paywall – Peter Slaughter, Director Advertising Operations at Financial Times

12.04 Three kinds of paywalls: Freemium, Metered and Hard (full-stop). FT.com has been working a metered pay system since 2007; before that they had a hard paywall erected in 2001. FT is not a 

12.06 What to consider when thinking paywall – what type of security? Constant battle keeping freeloaders out of your premium content.

12.10 The advertising model may or may not be sustainable – buy side is commoditizing audience and publishers aren’t helping themselves by failing to control users and making too much inventory available.

12.14 It’s not just about traffic, it’s also about audience – majority of views created are regular users.

12.17 People will pay for two things – content you can’t get elsewhere or a unique experience (demonstrable added value, a targeted niche, dominates marketplace).

12.21 Section and home pages are free to view; articles require registration (8 articles a month free). Then it’s pay up!

12.26 70% of revenue comes from advertising; advertisers want multichannel approach.

12.30 The amount of first-party data collected is impressive – plenty of opportunity to monetize. ROI – can give real data to advertisers

12.35 Consumers will get used to paying for content, but it needs to add significant value.

Panel: The Future of Video

  • Brian Fitzpatrick, Managing Director, Europe at Adap.tv
  • Matthew Breen, Head of Video for Media Contacts
  • Barry John, Ad Ops & Inventory Controller for Channel 4
  • Rhys McLachlan, Director of Corporate & Business Development at Videology

2.03 The opportunity of video interactive ads: Brian says we’ll see standards developing around interactivity – interactive video is the ultimate blend of the features of display/rich media and (static) television advertising.

2.10 Hold your horses on a universal metric, says Matt. The GRP is simply inappropriate for digital video – encourages procurement and the bean counters, who hold back creative and industry progress.

2.15 Big risks are associated with programmatic buying and video, says Barry. Putting true value on your inventory is difficulty; there must be some way to mitigate for the risk of CPMs.

2.23 RTB doesn’t necessarily mean driving the price down, and in video it looks to be a whole new world, say Brian.

2.27 VOD is still very early in its evolution – we’re still fixing a lot of problems from the broadcaster perspective, says Barry. However, Channel 4 is looking to disrupt its direct sales and ultimately the market.

Bigger Than Broadcast – Fru Hazlitt, Managing Director, Commercial & Online for ITV

2.22 Brands are interesting too! And consumers will interact with them if they’re interesting enough, which is why the multiplatform landscape presents such an opportunity.

2.29 The distance between brand and channel has been too great – TV spots are like a cheap motel room where advertisers come, do their business and the owner doesn’t care (or want to know) what’s going on.

2.34 Interactions can (and should) go on well beyond the end of a program.

2.40 Second-screen marketing – using technology like Shazam (mobile app that recognizers and identifies music) promotes user interaction. Gamification can be used to encourage massive user interaction during gaming television shows as well as drama/comedy. TV and online thus become complementary.

Advertising in the Post-PC World – Russell Buckley, Chief Marketing Officer for Eagle Eye Solutions (@RussellBuckley)

4.33 Here’s the thing with exponential growth – if you’re behind, you’ve got less time than you think to catch up. Russell shares Coexist’s flooded stadium anecdote.

“Imagine a magic pipette. It is magic because every drop of water that comes out of it will double in size every minute. So the first minute there is one drop, the second minute there are two drops, the third minute four drops, the fourth minute eight drops and so on… This is an example of exponential growth. Now, imagine a normal sized football stadium. In this stadium you are sitting on the seat at the very top of the stadium, with the best overview of the whole stadium. To make things more interesting, imagine the stadium is completely water-tight and that you cannot move from your seat. The first drop from the magic pipette is dropped right in the middle of the field, at 12pm. Here’s the question: Remembering that this drop grows exponentially by doubling in size every minute, how much time do you have to free yourself from the seat and leave the stadium before the water reaches your seat at the very top? Think about it for a moment. Is it hours, days, weeks, months?

The answer: You have exactly until 12:49pm. It takes this tiny magic drop less than 50 minutes to fill a whole football stadium with water. This is impressive! But it gets better: At what time do you think the football stadium is still 93% empty? Take a guess.

The answer: At 12:45pm. So, you sit and watch the drop growing, and after 45 minutes all you see is the playing field covered with water. And then, within four more minutes, the water fills the whole stadium. This means that you think you are safe because it seems that you have plenty of time left, whereas due to the exponential growth you really have to take immediate action if you want to have any chance of getting out of this situation.”

4.38 Convergionist vs. Separista – those who like the one-stop shop vs. a separate device for every function. Most of the time the latter is wrong because people don’t want the perfect tool for every function, just something that gets the job done well. Famous photographer said to Russell: “The best camera that you’ve got is the one on you.” Well, that tends to be the mobile.

4.42 Consumer camcorders, phones, portable video game systems, digital music players and GPS systems will all be made extinct by mobile devices.

4.48 Mobile device hit all three marketing pillars in one convenient package: customer acquisition, customer retention and branding.

Wrap Up Panel – Moving Ad Dollars Multi-Platform

Louisa Wong, General Manager, EMEA at AMNET, Aegis International Ltd

James Brown, Digital Sales Director at Telegraph Media Group

Lucia Mastromauro, Interactive Marketing Manager, Europe at eBay

Ben Humphry, Managing Director UK at nugg.ad

5.02 Lousia: I run a data business – I hate the word operations, prefer the term digital strategist.

5.06 Are we all becoming data companies? Ben: We’re in danger of forgetting that we’re also in the creative business. For the vast majority of advertisers, the click is a meaningless measure. 

5.10 James: We’re a premium content news organization, but one that uses data efficiently and is easy to do business with on that front.

5.15 Louisa: With data, there is no consistent currency.

5.22 Lucia: eBay has more data than we can crunch.

5.23 Ben: We were good art data from the beginning, giving us an advantage on the quantification front; but we’ve created the problem that so much reliance is now on direct response. This is not the language of many brands. Measuring how many times an impression is above the fold is not going to help explain how engaging the campaign is.

5.27 James: Automated trading revolution is being driven by the buy side, but step two is about ease of transaction, which is what I’m more interested in.

5.31 Lucia: By the end of 2012, hoping to spend 40% of total European display advertising through RTB.

5.34 Is automation all about lowering CPMs? Lucia: Oh no – I’m paying two or three times more for CPMs in England and Germany

5.38 Pubs need to be mature about how they get into the automated market – namely knowing the value of their inventory.