Meltwater's BrainFood New York, August 12, 2015

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Transcript of Meltwater's BrainFood New York, August 12, 2015

PowerPoint Presentation

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Kaveh RostamporMeltwater Executive Director

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OUTSIDE INSIGHTS

Using media intelligence to inform strategy and measure success

Kaveh Rostampor, Executive Director@Rostampor #MWBrainFood

Its great to see so many clients and so many people here today! Thank you for making it here :)My name is Kaveh Rostampor I am from Sweden in Scandinavia and live in San Francisco where we have our head quarters, I am head of the organization in North and South America. We did a rebranding and repositioning of Meltwater a few months ago on the back of a 25million dollar investment in technology today Im going to talk about what we see quickly approaching on the horizon. And what impact we believe it will have for everyone in this room!

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3 Propositions

Company decision making will changeMedia intelligence will become strategicMarCom will be elevated to a strategic function

Im going to share 3 propositions that we in Meltwater think will fundamentally shape your industry and how you and your peers are working.

Of course all of you in this room working with MarCom consider your role strategic, and it is, but Im talking about elevating it much further than its considered today.

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Summer 2001, Start capital: 15.000 USD5

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The propositions on the previous slide might seem bold, but we have seen this industry shape up for a long time. Meltwater started almost 14 years ago The picture is showing our server park consisting of a bunch of used computers monitoring 13 Norwegian news papers.

Very differently from a lot of other startups these days, we started out with very limited funding. 5

Meltwater: Global leader in news & social media analytics

FOUNDED 2001 in Oslo, Norway

HEADQUARTERSin San Francisco1000+ employeesworldwide

23,000 corporate clients

50 offices across6 continents

Built withoutexternal funding

$15k

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Today we are an international company, and global leader in news and social media analytics. We are a 1000+ people today in 50 offices on 6 continents. And with 23,000 clients all over the world. 6

23,000 Corporate clients

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We work with clients from all industries and fields. Fortune 500 companies (GE, HP, Nike, Oracle), top universities (Harvard, Oxford), the biggest NGOs (Unicef, Greenpeace) car companies (Volvo, BMW, Audi, Tesla), list goes on from small to large organizations. Ive included some Finnish clients here as well .. 7

Informed Decisions2001 Product VisionMorning coffee

clientsown brandcompetitorsleadspartnersproduct reviewsown industry

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We had a product vision back in 2001 which we are still staying true to;When a decision maker is having her morning cup of coffee they should be able to very quickly get an understanding of what has happened in their echo system over the last 24 hours.

Up to date information about your own brand, competitors, products, clients or your industry should help you stay on top of things and make more well informed decisions. As we believe our 2001 product vision is more relevant than ever. 8

Every two days now we create as much information as we did from the dawn of civilization up until 2003- Eric Schmidt Executive Chairman, Google

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A LOT has happened since we started Meltwater in 2001. As Eric Schmidt said, every two days, we create as much information as we did from the dawn of civilization up until 2003Its a BIG Data world out there. Its mind boggling numbers we talk about.And the vast majority of the information is publically available for everyone to process and take in. 9

Big data company: We process 100 million documents and 2 trillion searches every day

datacapture

data enrichment

proprietary search engine

real-timeanalytics

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We started out monitoring 13 Norwegian newspapers 14 years ago, today we process over 100 million documents and do 2 trillion searches. PER DAY. We capture it from numerous sources (News, social channels, blogs, forums, public records, etc.), we enrich the data (geography, sentiment, demographics), we index the data and make it searchable, and in the presentation layer of the product we produce real-time dashboards with analytics (graphs and insights).

A tweet where your brand is mentioned, that is written somewhere, can be displayed in a graph or delivered in your email or to your phone within less than 2 mins. And there are 1000s of tweets written every second.. But the biggest value does not lie in reading all documents, but to understand the patterns and trends.

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We track Leading Performance Indicators (LPIs)

real-timeanalytics

ClientSatisfactionsIndustry TrendsCompetitive IntelligenceBrand PerceptionShare of Voice

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What we do is to track Lead Performance Indicators of your business.What we mean by that is that we help you identify and track indicators that might influence your business in the feature.

An example is that you start seeing the share of voice of one of your competitors increasing in Europe you want to undertand how and if that might effect sales in that region.What would you do today to prevent your competitor eating your lunch in that region in 6 months time?

Or it could be that you see the client satisfaction decrease of a certain product that could be a clear indication that the sales of that product will go down or that you might want to speak to your marketing colleagues to help increase the marketing budget of a certain product line.

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Lagging Performance Indicators

30 years of rigor in mining internal data...

BIERPSFACRMMRPSCM

is being disruptedby an explosion of external dataLeading Performance Indicators

ProductreviewsHiringpatternsCompetitoranalysisInvestmentsClient satisfactionEmployeebehaviorReal-time3rd party data.Benchmarked

A shift in focus from internal to external data

Fire wall

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--New software categories and massive companies have been built the last 30 years based on helping companies crunch and analyze internal data to better understand performance. Software categories like ERP, CRM, Business intelligence and billion dollar companies like Oracle, HP, SAP, IBM and Salesforce have been built from that need.

While internal data will continue to be extremely important, we believe it is being disrupted by the explosion of external data. New software categories and new companies will be created from understanding and benchmarking 3rd party external data, in real-time. Theres a goldmine of information and digital breadcrumbs in external data to help understand employee behavior, client satisfaction, for doing competitive analysis, or understand hiring patterns.

Ill give you an example of how studying global job posting can give you a good sense of what your competitors are doing.

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Hiring patternbased on location

Cision Lexis Nexis Meltwater

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Cision Lexis Nexis Meltwater Hiring patternbased on type

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Hiring patternbased on levelCision Lexis Nexis Meltwater

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Mining internal data is looking at history

So to summarize and make it very simple... Mining internal data is looking at history.. Its like trying to drive forward by looking in the rear view mirror : )16

Mining external data is looking at leading performance indicators and the road ahead

Whereas mining external data is looking at leading performance indicators and the road ahead. Seeing the obstacles, the threats, the opportunities. The road ahead will be more predictable! 17

External data is added to the decision processNew dataTimingBenchmarking

DECISION MAKING IS CHANGING IN 3 KEY ASPECTSDecisions are moved from after-the-fact to the point when events start to unfoldMove from isolated analysis to real-time benchmarking with peers

External data is added to the decision making process

We will be quicker at adapting to events as they happen

We will continuously benchmark with peers/competitors

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The increased complexity drives the development towards more data assisted decision making

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And we will do all this with the help of data power.

IBMs Deep Blue vs. Kasparov back in the late 90s revealed an upcoming truth:Computer technology had evolved an edge over the most talented and disciplined human minds.

IBMs Watson was kicking everyones ass in Jeopardy. Watson could process natural language, resolve linguistic ambiguities and evaluate the puns, slang, nuance and oblique allusions characteristic of a typical Jeopardy. Its fantastic.

Computers will be our tireless assistant in making more well informed decisions. 19

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So what are the consequences?

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So what are the consequences of all this? Looking into the crystal ball

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Executives will look beyond rear-view mirror reports and develop a large appetite to understand external data and the road ahead

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Decision making will look like a massive A/B testing exercise in real-time as events unfold

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In real time you test different strategies to understand how your echosystem and competitors react.A competitor is dropping their prices in Europe.. How do you react to that? You can test different strategies and see how they are received and unfold.

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The new guest of honor in the board room will be an analytics engine benchmarking your company with competitors in real-time on leading performance indicators

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We think this will rise to the top of the companies and into the boardrooms as well. 23

A new, large software category will emerge

News clippingsSocial media analyticsBig data analyticsbased on a wide range of external data types1st Generation2nd Generation3rd Generation

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MarCom has the opportunity to fill the voidMoving from mentions to leading performance indicators and business insights Combining media intelligence with insights found in other external data typesMove from justifying budget spend to support key decision makingAnalyticsBeyond mediaResource to CXO

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Summary

External data is becoming one of the richest sources for business insightsExecutives will look beyond their internal reporting systems in order to understand what is happeningMedia Intelligence becomes strategicThe way companies are run will as a consequence changeMarCom can help provide valuable insights to aid strategic decision making

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Thank You

@Rostampor#MWBrainFood

John KoetsierVP Research, VentureBeat Insight

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@Venturebeat

#MWBrainfoodMobile advertising and brands

John Koetsier

VP Research@johnkoetsier#MWBrainfood

there is a lot going onin mobile

Big shocker: lots happening in mobile32

In just 8 years, smartphones have taken over the world

2B on the planet today; soon will be 4, then 833

Just last year, time watching that small screen in your hand surpassed watching that big screen on the wall35

In 5 years amount of voice usage has been constant

Data has skyrocketed more than 3400%36

2/3 of Americans are regularly confronted with mobile ads37

Mobile video advertising is up 61% in the US in just the last year38

And people are responding.

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M-commerce jumped 123% in Q1 from the Christmas quarter of 201440

but not everything is easy

100s of mobile ad networks

Get better Verve logo?42

Massive complexity in mobile advertising43

Fraud

6M click study in 2012 found 40% were fraudulentMicrosoft: $1B lost to fraud in 2013Assoc of Nat. Advertisers: $6.3B in 2015 for all digital

BotsStacked bannersInvisible video running in 1x1 pixel frameOff-screen adsTricky links inviting fat-finger clicks44

Add it all up can be overwhelming for brands45

These guys live here46

Most of these guys not so much47

some brands are pretty savvy

the question is:what are they doing right?

We talked to 20 of the leading mobile ad networks, agencies, and players

We studied data from over 500 million ad impressions

We surveyed 1500 Americans49

12 things

We think we found 12 things

Found plenty thats wrong, too but well save that for another night50

(we dont have time for 12 things)

Small problem . we dont have time for 12 things

But Im going to highlight the most important ones

And if you want all the data and insights from the report Ill give it to you after this show51

design for mobile1

The 12 are in mostly random order but this is maybe the most important

Obvious, maybe, but often ignored52

RevMobYouTube: dance and jump for Carnivale Used phones motion sensorsCaptured mindshare: people talking about it

S4MDevious Maids: which Maid are you?80% engagement

OperaThe CW: Catch the Flash mini-game in the ad40% who saw the ad played the game

Jaguar: configure the color of your vehicle in the ad53

location targeting2

Geo-targeting; geo-conquesting

This: VerveHonda geo-conquesting Toyota

The result was an average of 20 seconds attention to the ad, and an increase of 377% in average foot traffic lift, according to a study of 125 geolocated ad campaigns s in the automotive sector.

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Almost 75% of us have tapped on ads for local retailers56

Its always good to have data, and location data is important data

But you have to be careful with a point in time geo-history is more valuable

Single points can be dangerous

Berlin

Wasteful and annoying57

video4

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Mobile video is HOT

Snapchat users watch 2 billion videos a day, just debuted 10-second video adsSpotify has plans to unveil a video offering in addition to its music playOnline community Reddit just launched video in MayTwitter is building a sort of native-advertising-meets-video for Periscope and Vine, its two video propertiesFacebook launched 15-second video ads for Instagram late in 2014Google, of course, has had video ads on YouTube for yearAnd Facebook is starting to challenge YouTube for video views with over 4 billion video views daily in April up 25% in just three months59

Remember this slide?

Theres a reason were pumping all that data out, and its called mobile video

As weve already seen, mobile video ad spend doubled from 2013 to 2014, reaching $1.4 billion. Its likely to double again this year and hit almost $7 billion in just a few short years.

Question of course: is it working?60

In a study covering tens of millions of mobile ad placements, Millennial Media found that video ads generally average 5X the engagement of static banner ads. That ranges from lows of 2-3X in the automotive and entertainment verticals, to 6-7X in the finance, retail, telecom, and technology services spaces.

Despite those outsized engagement numbers, only 27% of entertainment campaigns use video, and only 10% of automotive. Interestingly, despite the fact that consumer goods video ads generate 561% more engagement, only 22% of consumer goods campaigns use video.61

native advertising6

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Land Rover uses a lot of native advertising.

The company commissioned a story on smartphones, GPS, and -- of course -- a Land Rover. Published it on Quartz, a very visual news site, and tied it into the commissioning of an interactive game, available on the web and mobile, based on The Vanishing Game by novelist William Boyd.

People were interested in the content and shared it, says Kyaw.63

Native content fits right in where mobile ads are most effective in the stream of content.

In fact, ads on the News Feed (both desktop and mobile but especially mobile) were both the cheapest for brands per-click and the most successful (i.e. highest clickthrough rate) ad placement type in 2014

Guess what works best there? Content similar to what people are seeing from their friends. Native content.64

planned spontaneity10

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Im sure everyone recognizes this

Perhaps the best example of brand spontaneity Bonin Bough Oreos during super bowl power outage

But failure

But, Bough now says, that brilliant real-time social media success was also a huge failure.

"On one hand, Dunk in the Dark was a huge success, but in reality, it was a huge failure," Bough told Fast Company. "Imagine if at that moment we had been able to programmatically change every piece of media that we were buying to turn on the Oreo ad."66

Adidas had its Oreo moment in the last mens World Cup of soccer

Both teams in the final sponsored by Adidas

Minutes after winning special jersey available

No-one knew

Now: Thomas Muller scores fro Bayern Munich jersey available ad running 6.6% CTR

You can have your lawyer in the room, and you can have your creative set up, says von Cranach.67

there is a lot going onin mobile

Ecosystem

Whats not working

Fraud

Local and beacons68

and theres a lot morewe could talk about

Thats what the report is for

Youll get it bounce around it in enjoy

But now its time for the panel 69

Mobile advertising and brandsVenturebeat

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Douglas KarrFounder, Marketing Tech Blog

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The Customer Journey & Personas

Marketing automationSelling refrigerators to starving people.

ZMOT and MICRO-MOMENTSWe know the purchasedecision is happening much sooner than before.

GoogleZero Moment of TruthWe also know the purchase is the result of a series of personalized moments.

Think with GoogleMicro-Moments

Cisco Research on the Customer JourneyWinning the New Digital Consumer with Hyper-Relevance

Motivations that influence purchaseWhen do people purchase?Efficiency - When it makes life easier.Emotion - When it makes life happier.Facts - When it makes sense.Trust When they trust you.

Motivations vary and overlapEfficiencyEmotionFactsTrust

Practice versus realityWe create content that:EntertainsInspiresEducatesConvincesWe should create content that:Feeds IntentFeeds MotivationFeeds NeedsFeeds Emotion

Example: Healthcare - efficiencyLooking for a quick and efficient visitNo patience for long waiting timesOften look for the best in the businessWill often choose convenienceHave a tendency to put off healthcare needs because of timeImpressed by awards won and academia achievedWant an office that looks clean and is up to date with latest technology

Example: Healthcare - EMOTIONNeeds their doctor to be likable and friendlyWant a physician who will listen to themUp to date waiting area aesthetically pleasingShort wait times, bored easilyLike popular doctorsBeing treated like a friend by all staff is importantMay choose an attractive doctor firstMore willing to try alternative medicine

Example: Healthcare - FactsWill likely have the same doctor their entire lifeTestimonials are importantNeed a warm and friendly, family oriented atmosphereNeed to know How things are doneAppreciate a traditional approachDoctor must be thorough and not rushed

Example: Healthcare - TRUSTCouldnt care less about aestheticsMost concerned with education and experienceTraditional doctors only, no whacky experimental stuffPhysician must dot every i and cross every t No detail or possibility left undone.Need and overly cautious and worrisome physician.

How we comprehendVisualAuditoryKinesthetic

IntegratedWhitepapersInfographicsPodcastsVideosReal PhotographyReal Stories

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The reality of marketing

THE PERFECT FOOD.. ER.. CONTENT

PERSONALIZATION + real-time = brand controlProviding a seamless, personalized experience reduces consumer friction, reduces reputation issues online, and increases customer satisfaction. Word of mouth and testimonials drive greater trust, greater (good) visibility.

Social monitoring is imperative.

Meltwaters new real-time monitoring. Dashboards are updated in real-time with automatic reporting.87

Machine learning + infinite customer journeys

Optimove

MELTWATER - Taxonomy, ontology, Lexical OnomiesAnalyzed 600,000 social & search terms

Developed Conversation Cloud OnomiesAnalyzed Engagement by Social Channel Implemented Site Hierarchy, Audited Existing ContentReproduced Existing Ranking ContentTrained Editorial and Social Staff on OptimizationIntegrated CMS social sharing capabilitiesAligned PR and Content Promotion

Synonomy similar terms used for the same topic. Antonomy opposing or differing terms associated with the topic.Hyponomy specialty terms associated with the topic. Meronymy the parent topic(s). Holonymy the subtopic members89

RESULTS OF content authority

Less ContentImproved ContentResearched New ContentCoordinated Promotion

17 million pages, black-hat SEONo ranking above page 2No sharing or promotion alignmentIncreased site ranking, conversion rate by 23%90

Profitability and ATMOSPHERIC MARKETING

One of the most important recent advances in business thinking is the recognition that people, in their purchase decision-making, respond to more than simply the tangible product or service being offered. The tangible product a pair of shoes, a refrigerator, a haircut, or a meal is only a small part of the total consumption package. Buyers respond to the total product. It includes the services, warranties, packaging, advertising, financing, pleasantries, images, and other features that accompany the product. Philip Kotler, 1973, Journal of Retailing

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Panel DiscussionWal-Mart Entering the e-Commerce Grocery Business

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Q&A

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Thank you!

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