so it’s true I’ve never actually spoken at an e metrics confidence before and there’s really two reasons frankly gym that I have the first rationalization is that certainly in the earlier eras when I was running around a lot trying to build the marketer and most of your seminars were in the west coast you are from San Diego I’m much I was not sure I could yield the time away from the part in the flight duration and all that and then irony of ironies I was scared because I was exhilarated when you said hey what’s going to be right here in New York bringing it in essence to me it turns out that i had to accept another invitation to speak in san jose yesterday so i took a redeye irony of absurdities to get here today so I’ve had no sleep this is why we love Starbucks or at least died the second obstacle was Jim is a brilliant presenter and a splendid person when it is necessary to metrics does anybody in metrics here time check if not there’s a great conference claim down the hallway perception I require it’s about dentistry or so I didn’t feel in my heart of hearts being a kind of a numbers guy but not really a metrics person at least in your smell of the word and so I really didn’t think I was up to the task and then finally I decided you are well aware I actually want to get on Jim stage I truly want to do it justice so I wrote a book okay I didn’t really write volume just for you too but it was a gotta left right and I I misled because I didn’t write the whole book myself in meijer in fact the real expert when it comes to what we’re going to call performance measurement so all that aside we’re here i’m here today we’re here today is anybody ready to have some fun Hey Wow even better the audience in San Jose you miss some thought more chocolate they’re a little quieter let’s start with this fundamental set of questions that is dogging most marketers today these are the questions that they actually haven’t figured out they relate to online but it’s much bigger than it relates to really all of media that is a lack of adequate metrics and measurement systems to drive sell carry-on this in fact was the impetus for the book Vivian Maier came to me and said hey would you like to write a book and I said no he then made me up the hour lunch no martinis and we write the book primarily because the performance measure and I knew that it needed to be fixed even though if I wasn’t the expert in that these matters the second largest thing is that there’s this thwarting with how to effectively engage with consumers today because really that’s what we’re trying to do is marketers right not just look at a regulate of numbers how do we engage with them when their attending straddles are so distracted they’re doing simultaneous media consumption they are basically resistant to pushing contents like ever been so how do you actually engage with them it will learn the secrets to both of these secret number one of course as I said before is about the need for performance measurement so looking at the need for accountability emarketer likes to look at stats so I’ll shy a couple at you “its from” the four daytimes busines but we found that three districts of CEOs trust purveyors scarcity business credibility ouch that doesn’t feel good and this one this is the marketers themselves sixtythree percent of marketers conceive selling roi right will be the most important measure of the excess success in 2015 and hitherto only fortyfour percent feel prepare to be held accountable for it so we have a little gap here in the future as well as right now because that breach is even bigger right now in fact let’s kind of evoke the feeling that most purveyors particularly at the major height am thinking about data and analytics and all the stuff that it takes to measure marketing safaruss all right and overlaying this fear is this and this this this irritation because you essentially have to have a PhD in statistics simply to understand what your marketing programs are doing is the demands from up top the CEO and the CFO to account for yes every dollar that you invest in marketing what kind of return on investment am I going for that and it’s b2c companionships it’s be to big companies it’s every horizontal segment mostly I’m talking about this for years and nobody’s ever said no Jeff bet that’s really not a problem we just throw 50 million dollars out there and discover what happens now that’s not happening it conducts specific purveyors to expend specific refreshments all right we all have a little agita from what’s going on with all this there’s just so many different amounts to look at and then when you overlay that with this thing have you heard that there’s a recession yeah yeah it’s still going on that is to other people to a different refreshment but we’re not here to talk about that maybe later is there a chocolate hour or sorry a cocktail hour late yeah very good so time kind of teeing you up delicately for that I love the way Bob Leodis who’s the head of the Association of national advertisers settled it so succinctly when he said the challenge is proved to me that it operated proved it works in both the short term and importantly the long term deliverables the short term not just the nanosecond of a sound but over time are we moving the dial in terms of consumer sentiment brand consideration right down to guess the ottsville acquisition and repurchase and firebrand love and lifetime value and all those good things that you guys know more than I do all right so let’s take a quick look at what’s at stake you how many dollars are we talking about Jeff well in fact we’re talking about 157 billion media advertising dollars this is above the line television radio print outdoor indoor whatever that is digital etc so 157 billion that’s any purveyor figure out cell having a broader definition of media marketing includes sell whatever they want to include in that strict forward and a whole knot of other things so that’s three hundred sixty eight billion and then if you include varonis Euler and some of the other mega Watchers out there of media and sell all of marking Communications we’re talking about one trillion dollars now I know that’s nothing compared to our national debt but you know it’s big figure I’m you get within that pie is 31 billion dollars that is spent on digital marketing or advertising i should say in the US 31 billion dollars doesn’t include the 60 to 70 billion that’s spent on websites and all the back office stuff that requires to run that but what’s increasingly happening is that the internet is seen as a hub because it’s where more and more of consumers are spending their age and booking throughout the day during at work as well as at home it is a huge purchase influence we all know that what between eighty and ninety percent of buys none depending on your concoction category are researched online even though they are they end up being purchased in an offline situation right now online is about twenty percent onefifth 19.9 percentage to be specific of total media in 2011 and next year you can tweet this next year in 2012 digital will join or actually outdo newspapers and stores combined in terms of spending that is a huge kind of milestone I recollect when internet surpassed outdoor we were like boo boo at 5 billion so basically it’s also the media measurement hook because you run a campaign on television or radio or whatever you know some of these other traditional media and whatever it is you often find is it or hopefully your technologist across media stage campaign is that you can measure whether there’s commitment going on through a mobile manoeuvre through a website you are able to discern granularly whether there is engagement through the digital medium so in a sense the internet is the power of what medium to rule them all ok perhaps I’m getting state really a little ahead of myself but you you get the sense this is increasingly how purveyors are seeing it I don’t know how many discussions like yesterday when i was in san jose this is a very large b2b fellowship in the lighting business who appoints this whole two or threeday event called a digital summit digital meetings are happening all over the place right in the inn I’m looking at some kind of flyer that’s there on the acknowledgment desk and it’s for the thousands of Adobe employees who are going to be there the next day for a digital top so it’s happening all over the place alright moving on Jeff can you tell us what is the spending growth rate for online publicizing we said it was 31 billion in 2011 in fact we’re anticipate twenty percent we came up with this estimate in june of this year you’re probably reckon Jeff you know there’s this recession thing going on what what is it be your equal is booze when they come up with numerals like doubledigit twenty percent growth rate well in fact if you look at the other research beginnings which emarketer nikli does we are transparent we look at every single source imaginable four thousand sources we look at and in this case there’s about you know almost a dozen different study informants they’re all reveal doubledigit raise and as I suggested in June we will start to see by the end of this year these lists pop up because we not because we’re so present but we do look at veers we look at the big actors the market like Yahoo and MSN and Google and so on and we look at their SEC filings their earnings and we gratified your posteriors up what’s really going on there so this is a realitybased estimate and by the way we benchmark against the Interactive Advertising Bureau so when they come up with new moves of numbers like they just did provides information on first half up 23% and if you allow for perhaps really a little smidge of in a rosen in online ad spend having regard to the world financial morass wherein you probably are going to get pretty close to twenty percent so we’re sticking with our twenty percentage so remain that in imagination twenty percent rise where is the digital growth coming from well it ain’t really come the pole media tart which we’re reckoning is not even us but lots of others are now coming in at they downgraded the rest of us from about three or five three to five percent proliferation to about 1.4 one point six percentage rise sir martin sorrell we always love to hear from him says the wash watchword is cautioned actually declared they only uneasy right then there was this we had these crowds we look at not only internet lists we look at total media investing because of course it all has to integrate and this will happen to appear in the Wall Street Journal what you see is TVs continuing to rise in terms of ad spending 60 billion plus sell but you see a continuous decline in newspapers and magazines and oh what look internet going up at largely at the expense of newspapers and publications it’s not coming from television it’s coming from newspapers and periodicals and some other things as well and in fact that’s corroborated by this source this is a society of digital agencies whatever that symbolizes brand marketers worldwide who planted shift funds from traditional to online three districts said yup that’s where it’s coming from so it’s not a bigger pie its borrowing from Peter to pay Paul and Paul is the internet only clarified so let’s get back to the book I love to give back confidential list to get to the problem of action with digital consumers and this is a thorny problem surely if you thought performance measurement was tough even tougher this is your consumer today she is very distrusting of you marketers and we see this trend over duration get worse and worse the numbers in terms of the taste of advertise as business practices infinitesimally low i think it’s just above used vehicle salesman and below guarantee I symbolize it’s not a quite painting all right and then you check statistics like this and you know we can argue with if it’s true or not but fortythree percent of consumers said they ignore or neglect placard ads more than any other medium and then there is that a charming affliction and I recall a fund should be started to to help people have this affliction it is a really terrible disease and i hope you you don’t succumb to it yes it’s called flag blindness won’t you give today so with that in knowledge I’m going to propose something somewhat progressive which is what we talked about in the book which is that the stop disruption swab where we interrupt this programming to sell you trash you’re probably not interested in it least not right now right to distract you from the program that you came to see in the first place you know this was born out of the television era liberty but it happens in radio it is happening to the internet when you get 15 popups or 50 ads on the sheet and your attention is just trying to go to the content you came to in the first place it’s acquired interest or attending we’re doing that it doesn’t go away perfectly paid media is not dead don’t please don’t tweet that and have everybody kill me it’s just that it’s going to diminish in usefulnes Seth Godin said it very well at a meet about a year ago he says promote “re no longer” about detonation “the worlds largest” letters to the most people it’s about this ideas artistic hypothesis that it’s that spread are the winners you know there’s that viral constituent and then you’ve got one of the largest global marketers in the world Pepsi where the CMO said we need to create ordeals not only patronized tip no longer can we sit back and just say Oh brought to you by Pepsi right they want to experience with critters in the b2c and b2b world are desperately trying to do that so we call in to phrase marketers are focusing on we call it magnetized material this is content it is so compelling interesting in its own right useful entertaining that beings is not merely welcome it they look for more of it and they want to share it with others how high a forbid is that let’s take it a look at an example okay everybody’s seen the evian r elevators i’m not going to run an abundance we’ve all seen this 50 million views I precisely checked a ok fortynine quality whatever million but 50 million views right all on the YouTube channel not on Tv one of the best product shots I’ve ever seen is the newborns you know in and out of the bottles there why because it’s it’s fun to watch you want to share this with other parties how many people have seen this one cheech and Chong’s met of course i know jim has this is this is fantastic it’s cheating John come back from the 70 s with their remedies gender and rock and roll that we are all aware of and affection them from right it’s a humorous two and a half minute video right wait a second magic brownies it’s actually fiber one for my generation it undertakings because I remember them and I want to watch it really funny guys what’s amazing though is this is from general mills chi ching chong sexuality treats and stone it well what is going on here because it actually get it you have to entertain you have to get people’s attention you can’t acquire it anymore they unusually terribly subtly and cleverly weave in the produce and get the product benefit in there you don’t forget it you know but you’re laughter all the way to the bank another example this isn’t funny but it’s useful is north face which becomes you know ski casings and substance create an app for enthusiastic skier so you can download it and then understand what the snowfall cases are going to be at Mount Vernon tomorrow pretty cool that’s ample of utility so to clarify it’s more about magnetism than distraction which is what most ads are about another way to think of it is that magnetized content turns the part targeting approach on its manager should be considered the proverbial needle in the haystack is your consumer you’re trying to reach you get all your data and analytics together to really finetune and target that special customer based on whatever demographic profile you might have or life I don’t care so you target it but what if instead of going through the haystack trying to find that consumer or the needle you plucked out this big fat magnet what happens well of course the needle goes to the magnet but yeah there’s this little contributed plus which is it if you establish really good magnetic content that’s really funny fascinating or useful or what have you you will pull out of the woodwork or the haystack every kind of other parties that are interested in your magnetized material and therefore potentially your brand as well but you would have never noticed them or targeted them because oh well they just don’t fit my profile well who leaves a drivel if they crave your commodity and they’re interested in your firebrand because of your magnetic material wreaking it on so that’s how you can get some proportion we’ll talk more about that later I enjoy this there’s even experiment that supports the book types of interactions that brand-new at us new media useds aren’t we all new media useds for when hiring with companionships the very freighter of the roster this is how they want to be engaged the very fanny of alyssa’s oh satisfy observe it to me cast me a flag ad how many beings wake up waiting for a flag ad to thump them okay I exactly can’t wait to get online and get that come that pop up oh okay but higher on the schedule is offer me incentives ok this is recessionary environment we can understand that solve my questions customer service experience right and then entertain me like General Mills is doing we actually want mentalities to entertain us heck yeah we want to be entertained period when you think about it it’s kind of like the analogy of two boasts we in market love to use targeting and it is really like hunting kind of vernacular freedom so we’re targeting consumer interests and we explosion ads at them hoping that something will put and we can you know make this to the nth degree and be really targeted and so on but we’re really hoping that the word adheres right we argue that it’s not about hunting it’s about fishing a more patient exert where the real focus is on finding the best bait the best bait being that magnetic material that depicts the fish out of the sea to you “theres plenty” of big firebrands that you’ve heard of like Clorox and Procter& Gamble and Fiat we all know the samples that are using magnetic material but there’s also tons of smaller companies that you’ve never heard of that are spending very little money and coming a lot of bang for the buck and a lot of reach and retail distribution and all kinds of good stuff by using these digital media by creating great magnetized content the bar for clevernes does that much higher I know at this point is anybody in the chamber in a business to business world a knot of you good you’re probably wondering jet this is all fine and well with all these shopper examples but I don’t really know if it is a matter of me in my b2b world does material commerce work in the b2b world how about this presentation I’m a business your business b2b that that was kind of funny all right at least it’ s true all right think of all the white papers and newsletters at b2b folks put out over its first year right now we have webinars we have eNewsletters we’ve got online video we’ve got chirp it’s all the things they they are new implements in the b2b arsenal to create magnetized material I did an entire give yesterday about b2b a magnetized content I don’t have go for that today so only trust me it’s there high five criteria for magnetic content you really have to understand what is it that what is it that it takes to get to magnetized content the first two main thing if you do nothing else make sure its unique copycats no no no that’s not going anywhere is it useful does it suffice some valuable purpose and I mean a real purpose in the consumers life we likewise look at is it well implemented is it fun and finally does it make good use of the direct in which it performs i like to ask this fundamental basic question what I personally want to receive this magnetized content acquiring I’m in the target right and share it with others if the answer is no about congratulations you’ve just induced another ad good luck with that and it might work but it won’t work as well if you originate great magnetic content again the premium on the imaginative executing is that much higher we need to see little ads like this and probably a few more like this this was successful because it was unique yep certainly recreation I shared it with a whole cluster of people and but we must have sat at one point of another family in ours where there was a six teenagers of us all together we probably spent 15 or 20 minutes on vacation watching this with individual what’s that worth to a label and it was also extremely well performed right at this station Jim is wondering don’t you enjoy it when I just tell you what your thoughts are you have any more examples of brands being beneficial how many people have minors in the room I do too I’ve got four members of them and this is my fourth this chap gets more mess on him when he gobbles then I’ve seen all of my other three boys combined in this case it’s ice cream he adoration that substance so that’s why Clorox came up with this the my discoloration app better use you or you can pull up your app oh my gosh little Johnny spilled the ice cream or soda on himself how do I get that discolour out this could be gum and the elegant thing is sometimes the solution is a clorox product this is a bleach company but sometimes it’s club soda or something else you find around the house what their what the fuck is get right was they said it’s not about propagandizing Clorox commodities it’s about serving the customers needs beyond the produce itself that’s the challenge so we talked about is it useful but yani we come back to is it is it is it making this is something actually happening is it moving the dial there are just too many metrics out there I mean some marketers and advertisers to look at you know hundreds of metrics and they’re just in this dizzy spell all day long trying to drinking coffee trying to figure it out what we are viewing the book and I don’t have time to go through all of them now but I will talk about a couple visit there are seven key metrics to master 7 we tried to simplify get it right down to seven you situated that you identify those seven and you introduced them in the right framework and you’re going to have success on your hands the framework that we talked about is a hierarchical succession of containers to capture information about the consumer at the very lowest level where most marketers time kind of skit poke is the exposure metrics okay revelation metrics are those low level metrics related to the performance of individual paths how many clicks did I get you know just really lowlevel impression based kind of stuff strategic metrics happen over epoch these are related to longterm brand health controversies over period do beings are parties more well understood your label more lowered to purchase it more favorable to your symbol versus competitors again this does not happen in the nanosecond show this needs to be measured in like pre and announce sketches to be informed about our over experience over months or in case b2b b2b samples “couldve been” years are we starting to move the dial in the consumers head privilege in areas of their attraction for our product or brand or service and then finally we do ourselves a disservice and we’re going to be displeasing to the CEO and the CFO if we do not then restrain to the highest levels of metrics used to quantify business performance are the dalek that I’m putting in had contributed to dollars used to go in a way that I’m actually making money that is the purpose of most organizations all right the most critical thing here is that we have to establish connects we go in depth about that in the book but the idea is that you can correlate those lowest levels of metrics to the next position strategic metrics to the next statu business metrics if I do this it work it causes in this kind of exposure and if I do that those those metrics lead to the next decide which is correlated with changes in the firebrand consideration and so on claim up to fiscal metrics and the most one at the bottom here is that we want to introduce another brand-new period which is not just reach which in the internet macrocosm tends to be just fresh thoughts there was an opportunity to see the letter we say let’s qualify it let’s make a prepared reaching which means that there has to be some physical appearance of behavior that proposes there was actual cerebral or psychological commitment going on on the part of the consumer sometimes I necessitate a sound could do that in some case is if your direct response but there am i watching a video is there some kind of action I take that hints i am involved in thinking about your product or label it will be a smaller number a smaller your impressions but it will be more exemplifying of what’s really going on with the consumer and therefore a much more powerful set of metrics