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Sponsored by:Tools for Digital Performance Marketing in the OTT AgeIn Partnership With:With Drop ShadowWithout Drop ShadowFor Black BackgroundFor Black & White in colorFor Black & White in colorFor Black & White in whiteTo succeed in todays dynamic online landscape, M&E marketers need to build a direct connection to their consumers by utilizing data-driven direct response skills.2TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGEINTRODUCTIONFor media and entertainment marketers, both the game and the rules have changed.Were in the midst of a digital media revolution that has put some established M&E companies at a competitive disadvantage. Why? Weve entered a new world of direct-to-consumer delivery of digital content that is changing the way M&E marketers think, work, and strategize.To compete, M&E marketers must begin to think about their efforts in the performance marketing space more like a marathon, rather than a sprint.Whether consumers are cutting the cord in favor of over-the-top (OTT) players or supplanting viewing on digital devices, the relationships between customers and M&E companies are now a more direct relationship than ever. The ability to leverage and hone new technologies for developing these new relationships with consumers involves both art and scienceand requires the development of skills pioneered by OTT. This is what traditional M&E companies must now learn. M&E marketers must rethink the best way to develop, track, and engage with a demanding audience. They need to: Consider new market strategies to kindle consumer interest in M&E content Retune data and back-end infrastructure systems to better track and analyze audience viewing tendencies Understand all elements of a disciplined performance marketing campaign Develop a market strategy that builds a relationship with consumers Effectively use feedback and response data to improve customer acquisition and retentionTheres no doubt this is a massive transformation. Many M&E companies and their marketing teams may not yet have thought through the complexity of these new requirements. Lets further explore whats needed. CBSs airing of the sci-fi series “Star Trek: Discovery” via both over-the-air and VOD distribution is one example of how a network might use unique distribution models to reach new audiences intrigued by legacy programming. (Photo: CBS)The online landscape has created a new dynamic, allowing for direct customer relationships in industries where the relationship had formerly been disintermediated. This is happening in a broad set of industries including CPG, automotive, and insurance. One of the more interesting industries that is being affected by this is the media and entertainment industry. To succeed in this new world, M&E marketers need to build a direct connection to their consumers and leverage advanced data analytics and digital marketing techniques to better market to those customers and prospects. In other words, M&E marketers need to add data-driven direct response skills to their marketing tool set.THE CHALLENGE: KEEPING UP WITH STAR TREKOnline distribution is changing the M&E business. Look at Star Trek, for example.This science fiction series is one of the great media franchises of all time, inspiring a legendary following and resulting in countless movie and TV spinoffs. This year, CBS announced plans to revive the series with Star Trek: Discovery, a program that will premiere on CBS television. But the remainder of the series will stream exclusively on the networks subscription video-on-demand (VOD) service, All Access. This is a prime example of a hybrid launch geared to reach the VOD audience directly. Theres certainly a precedent for this trend. By 2018, 191.4 million US Internet users will access the Internet via connected TV devices, according to estimates by the marketing research firm eMarketer. Connected TV devices are defined as connected TVs, including web-enabled TV sets, streaming devices like Roku and Apple TV, gaming consoles, and even so-called dumb TVs connected to the Internet by laptops. Up to 58.2 percent of the US population will be accessing the web through such means by 2018, the firm says.To reach and engage with this new digital audience, native digital tools and content will be needed. Its not as much a matter of translating linear TV models online as it is a matter of developing digital content and marketing strategies specifically targeted to online audiences. CBS obviously sees the potential of using the Star Trek brand to reach new digital consumers. Smart cross-platform product strategy via VOD is a way to tap into a new demographic. In fact, CBS CEO Les Moonves publicly referenced the Netflix model for launching the series when speaking about Star Trek: Discovery.“There are millions and millions of Trekkies out there,” Moonves told an audience at the Morgan Stanley Technology, Media & Telecom Conference in February, according to Deadline Hollywood. “We know for a fact that the other versions of Star Trekthere were seven other series, some of them were great and some of them were terriblethey all did really well on Netflix. That gave us great confidence that this was the right choice to put the full court press on All Access.”1There are other recent examples of the ways in which native digital products can be used to tap into new audiences. The launch of Pokmon GO was the surprise hit of 2016, generating global hype and millions of new customers. The packaging of Pokmon GO as an augmented reality game drove 85 million installs within the first five monthsa move that generated not only digital revenue, but also huge brand awareness and free advertising through the hundreds of stories that were written about the phenomenon. 3TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGESmart packaging of Pokemon GO drove 85 million installs within five months.(Photo: South China Morning Post)1. “Star Trek: Discovery to Launch by Early Fall on CBS All Access, Les Moonves Says,” Deadline Hollywood, February 27, 2017. deadline/2017/02/star-trek-discovery-launch-cbs-all-access-early-fall-les-moonves-1202016648/4TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGEYet another example is the new digital venture from talk show host and comedian Ellen DeGeneres, who recently launched Ellentube, a site and app that will host exclusive video from her daytime program.2Its clear that more devices, more distribution channels, and more demand for digital services present huge opportunities for growth. The chart above from the advisory services organization EY, a division of Ernst & Young Global Ltd., shows that the next generation of digital consumer expects these kinds of services, and demand for more choice will accelerate further digital media adoption.A CASE STUDY: HOW BLOOMBERG BUILT AN ONLINE TV EMPIREEven traditional media companies are experimenting with new online sources, including the provision of specialized online video content. Bloomberg, one of the most successful global business media brands, started building an online video presence as early as 2011. Bloomberg has since seen immense growth in its online ventures. The tech news and research site VentureBeat detailed some of the benefits of this move, including a 20 percent increase in viewership in 2014.3Bloombergs success in establishing high audience engagement resulted from its investment in technologies that ensure customers enjoy a high-quality experience, including clear video. The company also used data analysis to identify popular video Bloomberg developed a special group to promote OTT ad sales and partnerships after research found that more than one million people were streaming video content from its OTT offerings.A chart from the advisory services organization EY, a division of Ernst & Young Global Ltd., shows how the next generation of digital consumer expects these kinds of services, and demand for more choice will accelerate further digital media adoption.2. Ellen DeGeneres Launches Ellentube Video Site, Expanding Beyond YouTube, variety/2014/digital/news/ellen-degeneres-launches-ellentube-video-site-expanding-beyond-youtube-1201343180/3. “Bloomberg Explains its Strategy for Success in Online TV,” venturebeat/2014/11/08/bloomberg-explains-its-strategy-for-success-in-online-tv/5TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGEsegments and integrate them with related articles on Bloombergs website. According to the company, 45 percent of the people navigating to the website end up staying to watch online video content.Bloomberg also found that more than one million people were streaming video content from its OTT offerings. The company has subsequently developed a special group to promote OTT ad sales and partnerships. Bloomberg provides specialized business content that may enable the company to see further growth in online video and OTT offerings. But some of Bloombergs discoveries, such as focusing on video content and contextual placement, provide lessons for other digital media companies as well. On the business side, the focus on video results and optimization of advertising data resulted in increased ad sales. More advanced audience measurement tools gave Bloombergs advertising sales force the ability to describe the audience in detail to advertisers, driving revenue, according to an article in VentureBeat.4So, what are the steps to building a native digital performance marketing strategy? The new direct-to-consumer model demands a specific strategy and approach for cultivating the new digital demographics. Below are the steps that performance marketers need to consider when building a performance marketing strategy.1. GET TO KNOW YOUR CUSTOMER With the explosion of these new devices and distribution channels, one might ask what key differentiators will be used to define success. The first criteria is obviously the quality of the content. But the secondhow a company uses technology to launch, analyze, track, and nurture the audienceis delivered through a specific performance marketing strategy.As this native digital audience grows, M&E companies will need new strategies to grow, measure, and optimize the customer experience, and that starts with getting to know your customer.In the world of legacy media, data was gathered primarily via viewing panels and surveys. In the digital world, though, companies can avail themselves of a wider range of methods for viewing and collecting datamuch of it real-time dataand for building relationships with audiences. This is becoming increasingly important as digital direct-to-consumer offerings have disintermediated traditional broadcasters and media producers.When beginning to formulate your performance marketing strategy, ask yourself if you know how and why your customer is engaging with your content. If not, a data and measurement strategy will be vital to providing those answers.2. GET DIRECT ACCESS TO YOUR CUSTOMER Content owners and producers must also understand how to build direct-to-consumer relationships without relying on distribution partners.Its not so much a matter of translating linear TV models online. Its about developing digital content and marketing strategies specifically targeted to online audiences.To better connect customers with popular programming like Game of Thrones, HBO decided to create its own digital access app that would solidify and sharpen the programmers direct-to-consumer relationship. (Photo: HBO)4. “Bloomberg Explains its Strategy for Success in Online TV,” venturebeat/2014/11/08/bloomberg-explains-its-strategy-for-success-in-online-tv/6TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGE“If you dont own your customer and your customer experience, it can be really bad because other people can set up toll booths between you and your customer,” says Andy Fisher, chief analytics officer with Merkle, a performance marketing agency.Fisher points out that HBO had this exact revelation. HBO began as a creator of high-value content that was distributed as a premium cable channel. The company then made this content available online using HBO GO. But HBO realized that it needed to create a direct-to-consumer experience, and so it launched HBO NOW, its own digital access app, so that it could own the direct-to-consumer relationship.“These content companies now have the opportunity to market directly to consumers,” says Fisher. “Its a complete culture change to have these direct customer relationships.”In 2016, HBO began the process of managing its digital media buying for HBO NOW in addition to managing performance- and audience-based buying for media that promoted tune-in for HBO original programming.The company began applying an audience-based approach to help identify the most likely high-value prospects, says Diana Pessin, vice president of user acquisition and programmatic buying at HBO. The goal was simple: to actively control the quality of the customers HBO acquires. The company also began to look at the overlays in audiencesbetween those most highly engaged in tune-in advertising and viewership datato help identify opportunities for HBO NOW.“This approach has really helped us evolve our audience-based buying practice,” Pessin says. “Data and audience profiling and analysis are now at the center of our planning process and frame how we approach every media campaign from the very first discussion. We have become more efficient with our media spend and have seen the lifetime value of our HBO NOW subscribers continue to grow over time.”For classic content companies, this is a whole new ballgame. Entertainment companies must begin to change how they think about marketing and about how performance marketing strategies can build relationships with audiences so that they mature into long-term viewers. 3. DIVE INTO THE DATA Another key step in developing the right performance marketing strategy involves gathering good data. This data should come from an audit of potential sources of information that might include: Email databases CRM systems Ad networks Set-top-box (STB) data Panel or survey data Third-party data integration servicesThe goal is to help companies succeed not only as world-class brand marketers, but also to become world-class direct-to-consumer marketing companies.7TOOLS FOR DIGITAL PERFORMANCE MARKETING IN THE OTT AGEThese disparate sources of data should be blended in a sophisticated and scientifically sound way. For example, data from a single source, such as STB data, may be limited and so may not give the complete picture. It may be necessary, therefore, to aggregate more data sources to create a statistically valid sample. TV networks can consider engaging the services of a data aggregator to collect, aggregate, and project that data across a wider population. In fact, one of the advantages of online video is th
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