Archive for May, 2007

May 30th, 2007

We owe it to the over 55’s


My previous post about MOSAIC types and DM was inspired by Hitwise who observed that the over 55’s are about to become the largest group of Internet users. This is not altogether surprising when we consider that this age group measures 15.5m (2001 UK Census) and is the largest single reported age group in UK marketing terms.

It does intrigue me that we as a marketing community still refer to all 15.5m over 55’s as one basic bracket. The over 55’s segment offers huge diversity and can be segmented in a number of different directions. Any age group that spans 30 years in range is bound to offer a wealth of surprises and opportunities.

If we assume that many people are remaining generally fit and active to age 75 then we’re talking about 11.15m active over 55’s. 6.2m of them (more than 55% of the under 75’s) are still of working age. More broadly, many over 55’s have assets that exceed liabilities by a long margin. Many are outright property owners. Many travel extensively, own businesses, develop property, play in bands, paint, write and even graduate. These people are often asset rich and time rich; the only mortgage they have is either a re-mortgage to reinvest in their home, on an equity release to help them enjoy life. In terms of Internet use, they will not become the biggest group simply because of their size. These are a group with a need to communicate, get news, re-connect and get involved in communities - all the things that that web and in particular web 2.0 delivers.

We should remember that this was the first generation that had real political attitude. They were the first generation to challenge authority - in the days when authority kicked back. In many ways the activities of this generation were the content fuel for the mass media explosion from which we all now benefit. For many reasons, marketers owe them much more than to call them one single group.

May 28th, 2007

Good to see Hitwise using MOSAIC and good to see important MOSAIC groups using Online

It’s my view that the online marketing community can gain much from traditional direct marketers. It’s also my view that direct marketers are being too slow to adopt online media. So for me at least, it’s always great to see any evidence of convergence between traditional direct marketing and online direct marketing.

Such convergence is evident in the Hitwise Analysts Blog which has been reporting the changing demographic profile of web users through MOSAIC - a traditional segmentation tool of direct mail marketers. And it shows up some interesting findings. Most notably, Heather Hopkins, Hitwise UK’s Director of Research, reports that ‘Symbols of Success’ and ‘Urban Intelligence’ are among the most active MOSAIC groups online.

Now anyone who’s sat in a meeting discussing MOSAIC targeting of any “ABC1″ product or service will be aware of the commercial attractiveness of both ‘Symbols of Success’ and ‘Urban Intelligence’. They are highly desirable from many marketing perspectives - affluent, confident, professional etc.

Because of their commercial attractiveness, these are also two of the most heavily mailed MOSAIC groups. If direct mail response rates are indeed falling (and it’s almost impossible to make an accurate generic comment about that, but intuitively, I’d agree), then direct mail marketers should start to see the web as an alternate route to some of their most treasured, but increasingly less responsive prospects.

Against this background, I wonder how many direct marketing agencies are brave enough to say, ‘these MOSAIC groups are some of the heaviest consumers of online media. Perhaps we should shift some budget out of direct mail and run some online media to reach them’. If they are not ready yet, the time will soon come.

May 4th, 2007

MySpace Media Choice


Just been down to my local cash machine where two interesting things happened. Firstly I took out cash directly after (Dr, Sir) Jonathan Miller, neurologist, theatre and opera director, television presenter, humorist and sculptor (Wik.) and secondly, I had this beautifully succinct myspace ad. literally thrust under my nose as I started keying in my request for cash.

Clients often ask how they can use Web 2.0 sites like myspace and youtube etc. Strictly from an advertiser’s perspective I view these sites as an online version of a call centre fulfillment pack. The key point is that you have to be directed there as a route to finding out more information about a topic - just as Dan Bowskill has done. If you go to Dan’s space there’s real value; music for downloading, pics and information.

When considering these types of web 2.0 options, advertisers and their agencies have to ask themselves a Seth Godin style permission/value contract question: Will the prospects I’m directing there feel they’re getting a fair reward for taking the trouble to visit my site? Dan’s site is great “value”. To be meaningful to consumers, advertisers must to be in the same “value” game.

PS - Isn’t brilliant media planning just so simple?
PPS - I wonder what Jonathan Miller made of it?
PPPS - Is this “brand” or “response” advertising? Moreover, does that matter, at all?

May 2nd, 2007

Google’s secret recipie


These are MI5 products. They’re are both produced using “secret recipes”. Employees involved in their manufacture probably sign a commercial equivalent of the Official Secrets Act with their contract and are sworn never to divulge the ingredients and techniques used in the making of these products.

And now of course, we have a 21st century online equivalent of these culinary mysteries; the search algorithms used by Google to sift and rank the world’s websites.

Seas of SEO consultants claim to be able to “beat Google” and increase your site’s page rank. They too have their own SEO recipes; buy more back links, get listed in big web directories, optimise your HTML, don’t use java or pictures and remember that meta tags are passe. For some, ‘beating’ Google is an interesting intellectual puzzle. For others, it’s a chance to fleece the unwary. So what is Google’s secret recipe and is it really possible for an SEO consultant to beat it?

My guess is that Google runs what is, in effect, a very complex credit scoring model and applies it to the web sites of the world just as a retailer applies credit scoring to prospective card account customers. Think back to when you last applied for a credit or store card. You were asked where you lived, your DOB, your income, where you worked, if you owned your home, if so, for how many years, whether or not you had other credit cards or other debts and so on. This process is about collecting statistical data about you to predict how you are likely to behave as a customer. The store or the credit scoring company don’t know you as a person so they have to collect information that is representative of you, your financial behaviour and, ultimately, your financial trustworthiness.

But collecting this data is just the start of a complex process (you can do a PhD in Credit Scoring in the School of Computer Sciences at Edinburgh University). To start with, not all your answers are treated as equal. For example, where you live may be three times as important as your age in determining your credit worthiness. And your income may be twice as important as where you live. All your answers are individually weighted and then aggregated to give an overall score for your credit application. So if you fail against an unimportant factor, your score may not be significantly reduced. But if you fail against a highly weighted factor, that could fail you regardless of all your other answers.

There are other factors too. Companies must continually adjust the way they score applicants because the nature of the applicant market ‘pool’ may change, or because the firm may have changing volume targets to deliver from within a fixed pool - necessitating a change in the way they look at those applicants within the pool. Statistical rules may need to change.

New techniques are being developed to reflect the dynamic nature of the task. Models are now capable of “meta learning” which means that they can run multiple learning applications and then take the most important learnings from the learnings developed by individual sub-models. This is where we get into the territory of machine learning, soft margins, non-linear regression and hyperplanes. These models are far more complicated than the recipes for certain spicy foods or fizzy drinks.

If you’re a webmaster, then it’s highly likely that your site is being scrutinised by Google using these sorts of data mining techniques. If you come across a search consultant who claims to have discovered how to “beat Google” and “improve your page rank dramatically” then bear in mind that they must have cracked the sophisticated statistical model that Google uses to prioritise pages.

So is Google really the equivalent of the HP or Worcestershire sauce of the 21st century? Well the answer is both yes and no. Yes, it’s certainly secret, but no, it’s far more complicated than the process of manufacturing a spicy sauce.

Update 22 August 2007:

Under the term “Digital Media+Web 2.0″ Teqtonic.com is ranking 11 out of 49,000,000 returns on Google. Unfortunately, that keeps us at the top of page 2, which is not ideal. But we’re working on those last 11 places….