Relevance and On-Demand-Marketing
Why ads will know what you need.
Click for the Commonwealth Bank Case Study
Full, non-edited transcript by descript.com
Relevance on demand marketing and why ads will know what you need.
It’s Re:iterate, the digital marketing podcast.
Hi, it’s Clint. Thanks for tuning in this week we are going to look at demand marketing and how that will play out over the next few months and years. The marketing mix has changed over time. Originally there were campaigns that were seasonal and things in between and they drove to mind.
And then as digital came along, we worked in two things called always on marketing. These are the kinds of things that just run. They are brand messaging things like free delivery, remarketing campaigns, particularly call arts, um, and shopping ideas. They are pieces of marketing that never really switch off.
They may change messaging slightly, but they don’t ever stop, pick and pay. My talk about utilities other than the fruit and vegetables to bring someone into a shop, so their money market that you can pay bills at the till, how smart shopper works, what the brand stands for, and opening hours. They can always talk about these things.
There’s no, there’s no reason to turn them off. When they add something new, they can have a spike campaign and then it becomes part of the always unmixed and then there are the campaigns. We all know about campaigns they could be for a season like Christmas that were just coming into black Friday that we’ve just left.
And then we jump into boxing day sales straight into back to school, and then healthy living campaigns to lose the Christmas pudding around the waist. All these things are seasonal. We kind of know one from the next, after back to school. They try and jump into ISA. I’m in between. That obviously is Valentine’s day, so there’s a way to start selling jewelry to people.
They are seasonal, they work globally, but they are campaign based and then there are campaigns that launch products or services or highlight a weekly deals. The cadence or the rhythm of these have increased over the years from say two months. To six weeks, and now the cadence is about a week. So the frequency’s increased and the length has decreased.
Maybe this has also got to do with their attention span is getting shorter. These campaigns tend to create demand. So for black Friday, I think everybody in South Africa, except me, got a television, um, or Christmas, they might be Gammons. They really work. Return on advertising spend is worked out and everybody leaves happy.
Except this black Friday. I don’t believe everybody was as happy as they were black Friday before the economy may be down. I also think people are being wiser with the way that they spend the money. So what is on demand marketing? That’s the next logical step. Using data not to create a need, but to react to a need a state.
It’s a bit of a difference there. So we’re using a combination of targeting of user journeys, historical data, and user input about location, time, weather, age, likes, dislikes, and any other data that we have. We cannot put in messages in front of people. Where they need them and when they need them.
The example of Watson’s AI that I used in the neural networks, episode six described Ogilvy and Watson working together to decide to put together a string of copy lines. They were then delivered to individuals based on a series of assumptions and the messages were targeted at them. So we’re using real time data about a customer to deliver one of a host of messages, which is the most suited way in which their customer thinks.
So the message is right at the time, and the messaging speaks, or Thor talks the way that the customer talks in their own language and this aims to hit them in the need state. That’s a fundamental difference between creating demand. And meeting a demand in a need state. So if a consumer is online at 3:00 AM they could be any number of reasons for that.
However, if the usual Petten is not to be online at 3:00 AM and now it’s day three of them being online at 3:00 AM there’s something up and let’s figure out what it could be. They could be working on a deadline or they could have insomnia. Now we look at the searches that they’re making and the sites that they see, and it becomes clear that they’ve got insomnia.
And it’s January. It’s a sort of a school, a new school year. And do you know that they have two schools, two school children, and maybe they’re worried about money or school fees. So here’s a great place to jump in with a message that if you’re up late and worrying about money for the school fees.
Get an education plan from Liberty and take the stress out of it, and you can go back to sleep and live and see your children graduate, that kind of thing. Um, so you suit the message to the person or to the, the needs state that they’re in. If I’m the child and I’m awake, it could be a message about how great schoolers and I can download an app to help me chill out and rest, or, um, that Walton’s has got me covered in terms of stationary for the next year or whatever the messaging might be.
It doesn’t really matter what it is. The idea is to present the right message at the right time to the right person on the mod messaging hits a need state. So we’re not there yet, but we’re getting closer. And with the tic and data are already available from Google and Facebook. This can almost be undermined if set up correctly.
So think about this. Need States, again, think about the kinds of messages that you need to put together and go out and make some Google’s dynamic ads on on-demand. But by using the right targeting, by developing lists based on historical events and landing pages and searches, and being clever with the creation of multiple copy lines, the algorithm can insert the appropriate text and headlines into a piece of content made up on the fly to serve that individual as they do whatever it is that they’re doing, searching, reading content, watching a video, whatever they might be doing.
The intelligence uses the data to deliver a semi on demand version of marketing. I think that’s really super exciting and a lot of this will be automated. But it still needs people who understand the data. Mathematicians, engineers, creatives, designers, videographers, editors, all have to deliver this kind of content in a coherent mat manner.
If we look at the way that YouTube is promoting bump ads, six second ads that you can’t skip, there is a fundamental shift in the way that those guys are developed and that that is really needed from a creative brain perspective. There’s a lot of talent that goes into making them. The industry isn’t going new way.
It’s just shifting. So don’t worry about your job, worry about what job you’re doing. I think there’s more to be excited about than it is to be scared about it. This kind of thing. It exists already in marketing, especially as we go down the funnel, but there’s a massive potential at the top of the funnel, and this is almost fully realized.
So when I not even necessarily aware that I’m looking for something, there is a place to start playing into this need state with undermine marking. I found a really cool example on McKinsey. Um, they did a paper on this the other day. I will put it in the show notes and it goes like this. Consider Commonwealth bank of Australia as new smartphone app, which changes the house hunting experience.
A prospective home buyer begins by taking a picture of a house. He or she likes using an image recognition software and location based technologies. The app identifies the house and provides list price, Texas and other information that then connects with the buyer’s personal financial data with links to further Linder databases.
Determines whether the buyer can be preapproved for a mortgage, and if so, in what amount? This nearly instantaneous series of interactions cuts through the hassle of searching real estate agents. Science. I’d say cut up, cuts out real estate agents and cuts out the hassle of connecting with mortgage brokers, and this process might be done within a week.
How’s that a fundamental shift from the way that we’re doing things these days? Your job is to learn about it, to see how you can use it, and what you need to learn to make this really work for you and your brand, your client, your product, or your service. Remember, once you’ve done a version of this and start it quickly, iterate and then iterate again and iterate again.
On demand marketing makes a lot of sense. It can produce meaningful content that we actually want in front of us, and it saves ed spend. Imagine seeing content that you actually want when you’re looking at ads in the future or in other words, next month, because it’s 2020 expect to start seeing undermined, relevant, and demand making campaigns complete the entire sales funnel.
The offer benefits for giving information for purchasing, for upsizing, and for sharing your experience. All talking to you the way you want to be spoken to you, offering you things you probably wanted, but now definitely need such a recap. Undermined marketing is the idea of putting relevant content in front of a user when they have a need state for it.
This content may be auto-generated or generated by you or the creative team, or whoever’s doing it. In some algorithmic format is delivered at the right time, but the right message to the right person, more and more of that will become AI driven. More of the languaging will suit the person at the end.
It will become personable and it will resonate better with them as well. I, I think it’s really amazing and I’m really excited to see where this will lead in 2020 and beyond. That’s about it for this week. I hope that this made some sense and I’m really thankful to all your listeners. The podcast is growing weekly and numbers, so please, if you enjoy the content, tell your friends and your colleagues and share it.
As always, I love feedback, so please send me somebody email podcast@reiterate.org or go to the website and leave a comment. Have an amazing week and we’ll talk again soon.