Keeping Up with the Future of Digital Marketing

Digital marketing extends well beyond marketing. Digital strategy touches nearly every business unit that touches the customer.

In 2004, when Lima Consulting Group (LCG) began, the big consulting firms had not yet established standardized digital practices. The specializations of analytics, tag management, social analytics, decision and recommendation engines for personalization, segmentation, A|B Testing and MVT testing, were either just emerging or non-existent, but we knew that the need for digital processing standardizations and adaptability would become a critical part of business practices.

Strategies and practices must be utilized to ensure digital practices transform with the ever changing digital landscape across all business units.

Most websites exist to acquire, convert, retain, engage and recover customers. The digital customer experience must extend across all business units including customer service, collections, account receivables, operations, product development, etc.

The migration to digital transformation involves more than marketing.

LCG updated our methodology from “developing, deploying and measuring” to “developing, deploying and optimizing”. It’s not enough to gain customer insights; that’s about getting smart. We also need to secure actionable intelligence, and get return. These two dimensions actually represent the X and Y axis of our digital transformation maturity model. (below)

Digital Transformation

In every business it’s hard to establish and keep a sustainable, competitive advantage.  But in digital businesses, it’s even more difficult.  Competitors can easily reverse engineer customer experiences.  It is important that organizations are good at:

- moving quickly
- launching early and often
- providing a minimally viable product offering.

All of these concepts are part of the Agile methodologies, which are being applied well beyond software development teams.

Jumping the Curve - Digital TransformationOnly Contant is Change | Digital Transformation

That’s a tall order to go it alone.


The New Google SERP Results: Who are the real winners?

Milton_160314_Image One Screen shot - CopyRecently Google announced their new SERP results layout. Google has recently removed the right hand side of “sponsored ads”. You’ll notice that the right side of the screen is now empty, whereas before there used to be about seven ads for highly competitive keywords. Since that update many folks have panicked and have adjusted their strategies to secure one of the top 4 allocated spots.

Larry and Sergey, want Googlers to have an elegant user experience, and to them, Google has always been about showing the most relevant content to each user based on the context of what Google knows about them; which is quite a lot…

At the same time, Google makes about 96% of their revenue through advertising revenue. The balance Google plays between providing a terrific user experience and maximizing ad revenue is a constant struggle for a publicly traded company that at its core is an advertiser.

The pendulum recently shifted in favor of the user in this latest change. With fewer paid placements on search result pages advertisers are scrambling to update their day-to-day pay per click bid management rules to try and secure the top spots. For those that do this manually, it is a tremendous effort, and with so much volatility in keyword auction prices, pricing is clearly not stabilizing. We are seeing that Google continues to experiment with various layouts and bidding logic behind the scenes so it’s going to be some time before the new bidding rules that advertisers may craft are going to require constant care. But rules-based, keyword bidding is so 2000’s.

Those advertisers that are using portfolio based, keyword bidding tools will have the upper hand. Specifically, for Adobe Media Optimizer (AMO) customers, the volatility is a welcome landscape to flex its advanced analytics muscles. Advertisers using AMO can sleep well at night knowing that AMO’s Modern Portfolio Theory or MPT algorithms are set up to handle even the most volatile SERP changes. Keep in mind that the underlying equations were originally built to optimize return and risk for another auction, the stock market.

This chart shows how the math is applied to various stocks to optimize the portfolio of stocks as represented by the dots within the parabola below. Those portfolio combinations on the edge of the parabola are the optimal points between return (as shown on the Y Axis and risk, as measured by Beta/ volatility on the X Axis).
Milton_160314_Image Two Expected Return - CopyMilton_160314_Image TwoFooter
Economist Harry Markowitz introduced MPT in a 1952 essay,[1] for which he was later awarded a Nobel Prize in economics.

Bringing AMO to the party is like bringing a tank to a knife-fight.  Those still running manual and rules-based campaigns will be left paying much higher amounts for their paid search.

AMO is equipped to handle any changes Google throws our way, and as pay per click managers, we know AMO will continue to handle hundreds of thousands of keyword bids per day to optimize for conversions.  We have some customers that the system is running over 150,000 keyword, ad and placement variations every day.  No team of digital advertisers could keep up with that kind of experimentation, analysis and research. 

Milton_160314_Image Three screen shot2 - Copy

“Keywords in our algorithms are modeled by bids and their effect is on number of impressions, clicks and revenue, not position.” Sid Shah, Director of Business Analytics, Adobe Digital Business.

The self-correcting models AMO generates is a feature no other pay per click platform can offer across search, social and display.  That’s one of the reasons that Lima Consulting Group selected Adobe Media Optimizer as our singular platform for running paid search, social and display ads for our portfolio of paid search customers.

In the short-term, anyone using manual or rules-based platforms to manage their Google ad spend will lose the Google battle to those that are using programmatic engines that use portfolio based algorithms.  The winners of this battle are those that are able to adapt to the volatility in the most efficient way possible.  Agility wins.



What does Adobe buying comScore Digital Analytix mean to the marketplace?

Adobe acquires DAX

This morning, Bill Ingram announced on the Adobe website that it has reached an agreement to purchase the ComScore Digital Analytics Business.  In 2010, ComScore themselves acquired what is today the Digital Analytix product.  At that time, NedStat, based in Amsterdam had about 125 people and the transaction amount was $36.7 million USD.  Terms of the Adobe deal have not been disclosed yet, but needless to say, the DAX product has in fact been a formidable competitor to Adobe and has played well in developing markets, especially in video analytics.

ComScore had some pretty innovative product development through their Digital Analytix product. DAX became a robust and yet very flexible platform, with multiple capabilities regarding data collection and measurement, from the comScore market unified measurement (panel and tag data) to internal (like CRM) client data. We think that the acquisition was for three major areas: the DAX customer base, the DAX technology and the DAX engineering staff.

From ComScore’s perspective, their focus has been in advertising and media and while they have created a solid product development team, I wonder if they were interested in continuing to invest in the DAX product line relative to their other product lines for real-time advertising.

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Lima Consulting Group at SIP Connect 2015

See Paul Lima, Managing Partner of Lima Consulting Group presenting at the InterAmerican Press Association annual conference, SIP Connect 2015.

All guests attending to SIP Connect 2015 will gather for the closing ceremony today at 6:00 pm ET to learn from LCG's Maturity Model. Paul Lima will be also introducing, for the first time in history, the groundbreaking Return on Marketing Technologies Research findings for the Top 250 Media and Entertainment websites.

Lima Consulting Group audited the top 250 Media and Entreatment websites using ObservePoint's advanced tag auditing solution. Armed with this groundbreaking data, the team of Digital Marketing Analysts and Data Scientists at Lima Consulting Group came up with never before seen insights about the world's leading Media and Entertainment websites.

Minutes before going up on stage, Paul Lima said: "I’ve learned a lot from SIPConnect2015, I hope that I can only give back a little when I deliver the keynote tonight with Rosenthal as my partner. Rosenthal is a distinguished journalist and stateman of the industry, I’m honored to have the chance to work with him tonight. We plan to present a message of optimism to the journalists throughout the Americas"

See the complete presentation below and stay tuned to download the final Media and Entreatment white paper to:

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Five Brands That Are Setting The Bar For Customer Experience Innovation

Companies that make life easier for their customers are rewarded with more than a one-time sale. Stimulated by sensationalism, social media trends and a generational force that is changing how brands earn loyalty and trust, consumers have become more critical and cynical. It is especially crucial for companies to cultivate their brand loyalists nowadays with consumers who are not only becoming more diverse, but wiser about their purchasing habits and more mindful of living their lifestyles. In order to achieve this goal, it is important for marketing and technology to work together to provide successful and innovative customer service.

Recently Giselle Abramovich published an interesting article on emphasizing the five brands that successfully triangulate on customer needs, business model, and brand.

customer_experience1-604x272_0All of the brands below are products of Adobe. Lima Consulting Group is a proud certified partner of Adobe. Here at Lima Consulting Group, we help organizations develop, deploy and measure effective digital marketing strategies. We are a trusted adviser to digital marketers in the Americas, using a proprietary series of multi-disciplinary methodologies to improve their Return on Marketing Investment. The LCG team includes experts in strategy, data science, business intelligence, digital marketing and technology, who provide these services in the languages spoken throughout the Americas.

With that description in mind, here are the five brand that are setting the bar for customer experience innovation.

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Digital Marketing Career Trend &Top Marketing Programs for Graduates of 2015

​The period from mid-May to mid-July is one when hundreds of thousands of young adults in their early 20s say farewell to student lives and celebrate future. Yes, graduation season is well underway--with college seniors donning caps and gowns to celebrate their achievement. For those of you who are interested in entering a career in digital marketing, it is time to think about your life after college.

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Why Should You Care About Tag Management? – A Summary Of Forrester’s Report

In the previous blog post, we talked about the fundamental of tag management and how it may solve the problem of too much technology and data. Today, we will go more in-depth with Forrester’s Report on how you can advance you digital intelligence with tag management. Here are some key take ways from the report.
Problems Faced By Digital Marketers
In the ever-changing digital intelligence market today, CI professionals are struggling to integrate data, insights, and capabilities from multiple analytic-driven technologies to deliver digital intelligence for the following reasons:
■ Ad hoc processes for collecting digital data put digital analytics at risk.
■ Firms struggle to scale digital marketing programs
■ Without real-time data manipulation, optimization is limited. read more

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