Interactive Ad Bureau (IAB) Opens D.C. Office and a Lobbyist

Aiming to increase its sway over government, the Interactive Advertising Bureau has opened a Washington, D.C. office and hired its first in-house lobbyist, Mike Zaneis. Source: http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=55849&Nid=27638&p=420929

Prior to joining IAB, Zaneis served as executive director of technology and e-commerce at U.S. Chamber of Commerce in Washington.

Zaneis predicts the upcoming Congress will see a number of Internet topics debated on the Hill, including privacy concerns, spyware legislation, data security legislation, and net neutrality.

“Congress is starting to take a look at this and is trying to understand how the Internet really works. And since advertising is the engine that allows the Internet to go, we’re going to have to engage with them and do some education on what our members are doing,” said Zaneis. Source: http://clickz.com/showPage.html?page=3625053

Omniture Acquires Touch Clarity and WebTrends Announces Partner Integration

Yesterday Omniture announced that it will acquire Touch Clarity, a Behavioral Targeting Company. Within few minutes a WebTrends announced partner integrations with leading digital marketing vendors, including email marketing firms ExactTarget, Responsys and Silverpop; on-site behavioral targeting firms Kefta and Touch Clarity; and consumer opinion and customer voice firms ForeSee Results and OpinionLab.

This promoted me to write this article because this is exactly what I predicted.

You can read the fill press release at
• Omniture Acquires Behavioral Targeting Company Touch Clarity
• WebTrends Announces Marketing Lab Partners to Deliver More Measurable, Automated Relationship Marketing

Anybody who read my predictions for 2007 (http://webanalysis.blogspot.com/2007/01/my-predictions-for-2007.html) might have already seen this coming.

Here were my 3 predictions for 2007, and this acquisition proves all 3 of them true. My new comments are in Bold

1. Web Analytics won’t be standing alone – Marketers will want 360 degree view of the customers. Integration of various data sources and tools will be expected from web analytics and other supporting tool vendors. Omniture started the trend with Omniture Genesis, and this will continue, we will see more acquisitions and partnerships similar to Omnitures.

- Both the above press releases confirm that this prediction has come true. Customers are demanding this stronger integration. I wrote a follow-up on this same predictions last week, you can read it here http://webanalysis.blogspot.com/2007/02/follow-up-on-my-web-analytics.html

2. Web Analytics will be about taking actions – More and more marketers would like to take actions and not just report the findings. It just won’t be about what happened, it will be about taking action to drive sales, user satisfaction, lead generation etc. Incentives and bonuses will be tied to the online KPIs. Optimization and Behavioral Targeting will become a common term used by marketers.

- Omniture acquisition of Touch Clarity, a Behavioral Targeting company confirms this prediction has come true too. WebTrends announcing partner integration with Kefta (Optimization and Behavioral Targeting) and Touch Clarity (Behavioral Targeting) confirms that marketers are demanding Optimization and Behavioral Targeting. It is not just about reporting, it is about taking actions. In near future I am expecting to see a lot of case studies about what actions customers took and how it affected their bottom line.

3. Behavioral Targeting – Only few main behavioral network players will be left and some of the existing ones with poor networks will either go out of business or be sold. See my previous article on why size of network matter. Behavioral Targeting won’t exist in isolation. Web Analytics tool will have to support behavioral targeting and visa versa. Also, on-site behavioral targeting will become very common.

- Part of this prediction has come true. I have yet to see any consolidation in behavioral network players. But as the above two press releases confirm “On-Site Behavioral Targeting” is becoming common.

Web Analytics is maturing. Gone are the days when marketers were just satisfied by learning like
“Traffic went up”, “Traffic went down” etc. It is about deeper understanding of the visitors behavior (Web Analytics), segmenting them (Web Analytics and Behavioral Targeting), taking actions based on this deeper understanding e.g. targeting relevant content, products etc. (Email, Behavioral Targeting, Optimization).

So I am 2.5 on my 3 predictions. I have already declared 1 more prediction come true (http://webanalysis.blogspot.com/2007/02/follow-up-on-my-web-analytics_09.html). So for the year I am 3.5/5 so far and the year has just started. I feel good about my predictions.

Questions, Comments???

Targeting Cart Abandonment by Email

Today I read an article called Four Ways to Improve Marketing ROI Through E-mail by John Rizzi, CEO of e-dialog. This is a good article for those who are trying to determine how to collect email, learn from email marking and email effectively. In his last point he says “Use Behavioral Targeting” to convert abandoned carts. He suggests using incentives to bring customers back to complete the cart they had abandoned. This is a great idea but I want you to be aware of following two issues before you jump into it.

1. Lack of Email Address: If you don’t have an upfront email collection process it is very likely that visitors (customers) will leave even before they give you their email address. If that’s the case then you won’t have any email to target (You can still deploy anonymous on-site behavioral targeting. Check out my article on behavioral targeting).
   If you decide to put email collection up front it might cause cart abandonment rate to go up. You have to provide a very good reason to your customers on why they should provide you email even before they started buying anything or checking out. Like any other change on the site, I suggest conducting A/B testing before you start collecting email addresses for all your customers. If the tests do not show desired result you might be better off with on-site anonymous behavioral targeting.
2. Backfiring of incentives: Let’s assume you have the email address and are ready to send an email incentive. As you already know the word spreads very fast these days. Most of your customers (visitors) will find out about your offers which could ultimately result in two outcomes:
   1. If the incentive is not too enticing (such as free shipping) your customers (even regular customers) might find out about it and start abandoning the cart in anticipation of receiving that offer or they might just use the coupon or offer code given to them by somebody on the internet.
   2. If the incentive is too good (such as $10 free for any purchase over $5.00, not sure why would you do that but I have seen companies giving free money just to get users to signup), the word will spread sending new customers to your site. So be prepared to handle the amount of traffic this viral marketing will generate and a possible bankruptcy.
      Appendix A shows what happened to Starbuck when they sent out an e-coupon to limited number of employees (or that’s what Starbucks thought).

So should you provide incentives to bring back customers who have abandoned carts? Yes I think so but think about all the pros and cons before you jump into it. Below are some of the steps that you should include into your process for using email incentives

1. Select a sample (say 20%) of visitors, who abandoned the shopping cart, who will receive any offer (I am assuming you have already created and tested a process for upfront email collection).
2. Test different offers within this selected group. Testing will show you which offer works and which ones don’t.
3. You can use more behavioral data (and I encourage you to do so) to determine what offer will make sense to which visitor segments (create few manageable segments so that you can stay focused). E.g. A customer who abandoned at shipping step might be more interested in free shipping than a user who added products to the cart but then left without clicking on the final checkout button (provided the customer has given you the email address), a 10% off coupon might be a better offer for this customer.
4. Unless you purposely want to engage in viral marketing, make sure coupons and codes can only be used by those for whom they were intended for and for specific period only. Also don’t forget to configure your web analytics tools properly so that you can measure effectiveness of these offers.

Note: If you provide users the same kind of incentives 2-3 times to a customer then he/she (most of them) expects it every time.

Appendix A: Starbucks Lawsuit
“Starbucks e-mailed the grande iced beverage freebie to a limited number of employees in the Southeast on Aug. 23, with instructions to pass it on to friends and family.
The forwarding turned into a frenzy as the coupon landed in thousands of inboxes and on Internet message boards – forcing the chain to reject scores of coupon-touting java lovers pouring into stores for the perk.” Source: ocregister.com

Part II Web Analytics Predictions for 2007- Follow up

In January I wrote my web analytics predictions for 2007. I wrote about the current status of two of my predictions in my previous post

In this post I will cover another of my predictions, prediction number 1:

A Great Career Field– There will be a lot more jobs in this field in 2007. A great year for those who are planning to enter this field or looking to move into better jobs in this field. Most marketing jobs will have web analytics as a requirement. Currently there are 1024 open job on Indeed.com but I expect this number to rise as there will lot more openings than qualified candidates.

Today I checked indeed.com and found that there are 1711 jobs listed under “Web Analytics”. This is a jump of 67% just in a month. I declare that my 1st prediction has also come true. Stay tuned for an update every month.

How about a little prediction game? Send me you prediction on how many jobs there will be on March 1st.

Note: Jan numbers were taken on 7th Jan, Feb numbers were taken on Feb 8th. I plan to take these numbers on 1st of every month.

Follow-up on my Web Analytics Predictions for 2007 Part I

In January I wrote my web analytics predictions for 2007. Two of my predictions were

Web Analytics won’t be standing alone – Marketers will want 360 view of the customers. Integration of various data sources and tools will be expected from web analytics and other supporting tool vendors. Omniture started the trend with Omniture Genesis and this will continue we will see more acquisitions and partnerships similar to Omnitures.
Web Analytics will be about taking actions – More and more marketers would like to take actions and not just report the findings. It just won’t be about what happened, it will be about taking action to drive sales, user satisfaction, lead generation etc. Incentives and bonuses will be tied to the online KPIs. Optimization and Behavioral Targeting will become a common term used by marketers.
Today I read an article Report: Web Analytics Market Pumped for Growth which hits on the same points that I predicted.
Here are two quotes from this article
“Many Web analytics companies started collecting data about Web site visits and providing reporting tools to analyze that data,” Megan Burns, Forrester Research senior analyst told CRM Buyer. “Now they’re moving to the next level of value, which is enabling people to act on that data and becoming a platform for managing interactive marketing activities.” This is exactly what I predicted “ Wen analytics won’t be standing alone and it will be all about taking actions on the data.
Here is another quote from Jason Palmer of WebTrends
“As an application category, Web analytics is evolving beyond data collection and reporting, claimed WebTrends’ Jason Palmer. “Traditionally, Web analytics has been about performance management, tracking Web site behavior and usage,” he said. “Four or five years ago, it began evolving into campaign reporting and most recently, campaign management and optimization.””
It is nice to see the validation by industry experts and leaders. The year has just begun I am sure by end of this year we will see similar quotes from a lot of industry leader and experts. I would like to declare that my prediction number 4 has already come true and number 3 is on its way to become true.

As always, I would love to hear your comments and feedback.