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OwnerIQ Thoughts from CMO Collective – Dallas

OwnerIQ was proud to co-sponsor and speak at the Dallas CMO Collective on May 9. The day saw presentations by top brands including Kimberly-Clark, IBM, Mott’s, Mary Kay, and 7-Eleven. Discussions covered a range of topics, from marketing ROI and the benefits of technology, to real-world opportunities to involve MBA students and the continued importance of behavioral marketing in the retail industry.

One of the more popular sessions of the day was OwnerIQ CEO Jay Habegger’s timely presentation on the emergence of brands and retailers as media companies.
Jay’s presentation hinged on OwnerIQ’s prediction that by 2014, at least half of brands will be acting like media companies by leveraging their web traffic data to generate new revenue through advertising and sales conversion. As Jay noted, last year, top online retailer Amazon made its quiet move into the world of advertising by creating an ad network using its consumer data, enabling advertisers to run online display campaigns targeting Amazon’s audience, after the consumer leaves Amazon.com and travels the web.

Amazon, like many retailers, recognizes the value of its audience and knows that there is a slice to be had of the $39 billion pie of online advertising spend. Of course, most retailers don’t have the reach and resources that Amazon does and therefore rely on companies like OwnerIQ to manage the collection and segmentation of data and the delivery of targeted ads to choice data segments. With this support, brands and retailers are now able to use their web data not just to optimize website experience for customers, but also to generate new revenue beyond their core business.

Jay acknowledged a couple of the most commonly voiced concerns with sharing audience data: consumer privacy and competition. As for privacy, the advertising industry itself has taken initiatives to ensure the protection of consumer data by forming the NAI and DAA, and providing consumers with in-ad options like AdChoices to learn more about the ads presented to us, as well as the option to opt-out. And, as Jay mentioned, consumers vote with their behavior. In this case “the silence is deafening” with low opt-out rates and low incidence of consumers taking action to even learn more through the AdChoices icon. This action (or lack thereof) suggests that consumers are willing to share anonymous information about themselves in exchange for foreseen benefits they receive online. When it comes to competitors having access to your audience, Habegger says there are defined ways to prevent this from happening that solutions such as OwnerIQ Media Solutions have built into their program.

The presentation was well-received by the brands in attendance, with many seeking out OwnerIQ to ask follow-up questions regarding changes in the retail industry. As always, CMO Collective was a great opportunity for OwnerIQ to meet with top brands and share and collaborate on changes in the marketing landscape.

OwnerIQ Checks in With Its Advisory Board

OwnerIQ held our Retailer and Manufacturer Advisory Board meeting in Chicago on Thursday, April 12. We are always seeking feedback regarding our service offerings and the retail industry directly from retailers and manufacturers, and our advisory board meeting was a great opportunity to do just that.

Much of the conversation focused on the continued shift to purchasing online, and the expansion to industries that previously were impacted on a smaller scale. The group consensus was that much of this change could be attributed to ‘show rooming,’ where people visit a brick and mortar store to view a product and then purchase it online at a lower price. All agreed that traditional brick and mortar stores will need to develop strategies around price, selection, service and marketing to compete in this new buying environment or risk being undercut by large online retailers like Amazon.

Another key topic was how manufacturers and retailers have a valuable asset in their online audience. While few retailers and manufacturers currently take advantage of this asset, companies will become more engaged if they begin to view their online audience as a new revenue stream. However, the separation of roles and responsibilities across large companies requires that corporate leaders view the opportunity to monetize their online audience or share it with key partners to run highly targeted co-op campaigns as compelling enough to bridge departments within their organizations.

Corporate leaders have a lot of industry-wide developments to keep up with. When introducing the process for monetizing and sharing online audiences to retailers and manufacturers, it is critical to stretch and develop their knowledge over time. Manufacturers particularly must adapt. They likely see the retailer as their consumer and thus using their online audience to run targeted co-op campaigns requires a shift in mindset and the ability to integrate a new program with their current processes.

The meeting provided great insight to the challenges facing retailers and manufacturers in the constantly changing landscape of path to purchase. Successful companies will learn adapt to the new buying environment and take advantage of their assets. We left the meeting with strong takeaways about the mindset of retailers and manufacturers today and how we can further tailor our offerings to meet their needs.

OwnerIQ Thoughts From CMO Collective Chicago

A few of the OwnerIQ staff attended the most recent CMO Collective on April 17 in Chicago. The agenda featured well-known brands and big players in the retail industry, including Kraft, IBM, United Airlines, and Unilever. Our own CEO Jay Habegger cohosted a presentation with U.S. Cellullar’s VP of Marketing David Kimbell on the future of generating online ad revenue for retailers and brands.
Jay’s session with David Kimbell of U.S. Cellular and 15 CMOs of top brands and retailers focused on the ability of retailers to generate online ad revenue through their owned media assets. This discussion affirmed our prediction that by 2014, 70% of retailers and brands will have strategy in place to monetize their online media assets through online advertising.

The Pulse of Innovation

Innovation was a major theme of the event, with particular mentions of social media and start-ups. Discussion focused on the importance of SXSW as a launch pad for new and innovative businesses in the digital space. An interesting idea is partnering large institutions with new startups in order to keep a finger on the pulse of innovation. Participants agreed that while social and mobile are the new media of choice, scaling or fully quantifying their success continues to be a challenge.

Missing the Boat on Women

One of the highlights was the introduction of Frank About Women, Mullen’s consultancy that focuses on marketing to women. As expected, this discussion considered women’s significant buying power that’s expected to keep growing (moms already controlling an estimated $1 trillion), while marketers are still trying to find a fool-proof way to market to women.

Data Reigns Supreme for Today’s CMO

Data (collection, management, analysis) was also a theme throughout the day’s talks. Questions presented throughout the day ranged from “Who manages it?” (the CMO, because data is key for innovation and tracking success and failure) to “How do we use it?” (optimize data usage by constantly tracking and analyzing). The marketing leaders acknowledged that analytics are increasingly important when determining a business’s media mix and vetting new media.

An interesting final take-away was on the topic of CMOs themselves. Industry leaders anticipate that the next CMOs are increasingly likely to come from the business sector, rather than marketing divisions.

CMO Collective was a great event as usual, and provided a number of interesting thoughts for the OwnerIQ team to consider.

OwnerIQ Featured in Internet Retailer

“ABT and Crutchfield figure out how to boost the power of display ads”:

Only about one in a thousand online display ads leads a consumer to click, but consumer electronics retailers Abt Electronics and Crutchfield say they’re boosting display ad click-throughs and conversion rates via “retargeted” marketing that’s triggered by consumers’ visits to manufacturers’ web sites.
To read the article go here.

Jay Habegger in Dealerscope

“How to leverage new online advertising strategies”:

Brick and mortar retailers are in a fight for their lives. The consumer path-to-purchase has migrated online, with Internet retailers benefiting to the detriment of traditional retailers who struggle to match the price points of their online competitors while their physical stores drag down margins. It makes you wonder why so many legacy retailers show up to this fight for the consumer without the right technologies.

To read the entire article, click here.