Is More Data Always Better?

There has been a discovery in the online marketing and data/statistics world in the last few years. We have had more websites, products and tools created online than we can possibly keep track of. The terms to describe this deluge of activity we have been hearing the most are “data overload” and “information overload” from both companies and consumers. This Google Magazine uses the term Data Obesity to describe this phenomenon.

They ask the question, why is more data always better?

I think the idea of “more data us better” is common from people who lived before the Internet was prevalent. We had to work hard to find data. Researching something meant going to a library and looking in a card catalog (or maybe something called Gopher) and then finding your way around the Dewey decimal system to find that book. And then sometimes they didn’t even have the book because it was checked out or possibly it was just filed wrong because nobody understood the Dewey decimal system.

On a related note recently we got invited to my cousin’s wedding in Santa Fe New Mexico. My dad promptly went to the library and checked out 3 books on Santa Fe and New Mexico. I cringed. He asked how to find out the flights to book something without a travel agent. I realized I have been traveling since 2000 this way and he stopped traveling about that time so he never has. I introduced him to Travelocity, it was mind blowing and a bit of data overload compared with the OAG book he used to use in the 80′s.

The point here is that finding data was really difficult. People had control over its distribution because it was in print. When it became more freely accessible due to Google and other companies efforts we assumed this would be good, because people could remember where to find it and use it whenever we wanted. We never thought it would get this big so fast. Now travel sites are overwhelming, they have too many choices and there are too many of them trying to get you to opt into something you don’t want while being over charged for bringing a suitcase on a flight. This is just one example of how data has gone exponential so quickly.

Others of us have come to a data overload conclusion when they have 200 emails in several in-boxes, 1000+ rss reader posts from feeds waiting, several work projects, 500+ Facebook wall posts in their feed and hundreds of tweets that have gone un-read. This is among a climate where you have to follow-up with projects 5-10 times to get things done, post blogs/tweets/FB status updates daily to keep on people’s radar, empty the DVR so it doesn’t get overloaded and auto delete something you really wanted, listen to the radio on the way to work just in case something big happens and still find time to scoop the litter box before it gets full and the cats poop on the floor.

And the real purpose in all those tweets/FB posts and feeds is that you business changes yearly and if you don’t know about the latest trend and some real insights about it before your boss asks about it, you won’t have a job for all that long. (in digital marketing)

Having data overload be a “good” problem to have from some people’s perspective (as in that it is growth oriented). The democratization of publishing combined with tracking methodology and databases have all contributed to this problem, giving everyone a voice, a potential following of readers, a data trail to analyze and method to say something important online 24/7/365.  And then we have an even bigger problem of processing what is being said, figuring out if it is important or not and sharing/processing/saving it in some way if it is. Acting on that data is way down the line and many of us don’t even get there.

And this isn’t even the big problem with data overload. Where will we store it all? Why do tweets disappear from search so quickly? Because there are millions of them and the failwhale is full. According to the ThinkQuarterly UK, there are 800 Exabytes of data/information created every two days. It took humans from the beginning of civilization until 2003 to create the first 800 Exabytes, and we’re on a roll now.

Where does all this seemingly random data go? How will we know what it says without having to go into a database table and read specific field information? Where are the software tools to manage all this and still give humans the ability to customize the out put in ways that match the behavior or business purposes that we really need? Does any of this stuff ever get deleted?

These are all huge questions we have to answer as more people publish, share, create, track and do business online. We also have to weigh the possibilities of sharing data openly and locking it behind walls as well as how will people comprehensively find what they need when they want to as well as gauge the validity/accuracy of the information presented?

I’m betting on paid services for personal and business data management/archiving & Analysis tools. We will pay for good analysis, good data access & processing and good reliability/backups when we feel the pain of missing good insight, losing good data and just too much happening. Both personally and professionally. But unless you know how to work with SAP, SPSS, SQL, Oracle or a bunch of other systems data management is largely out of your control at this point. They are the librarians of our digital data and they need to find a workable way to Dewey decimal system it back into order and allow us to use it as humans need to.

The Future of Marketing

I’ve been thinking about the future of advertising & marketing lately sincem y boss is off to SXSW this week. I’ve found that in the last decade there is a new trend that takes over as the next-big-thing in online marketing every 2 years.

Before that, the TV/Radio/Print models lasted for about 50 years. I used to think that we were looking for the next big model/philosophy for advertising and things would settle into a steady pattern for the next 20 years but I am beginning to doubt that is going to be possible.

Either we’re still evolving or we’re going to always be evolving from now on. I don’t see any stopping in the development of new devices that use the internet nor the methods in how people use them.

This could prove exhausting for companies having to add another “expert” to their teams every year or so instead of making sure their staff has time to learn on the job, which they really should do. It also means that unless there is a new person or time to learn for companies, their effective advertising will become less effective every year they use it just because behavior is changing so rapidly.

A look at what is hot now and what has been popular in the last 10 years.

Facebook seemed to be the biggest advertising/marketing trend of the year in 2010 and companies I work with have jumped on the bandwagon in 2010-2011. I think this is definitely where people are online for a large chunk of their day, turning it into a communication channel for your company isn’t as easy as it looks. I’ve been on FB since they opened it to people with a company email address and I have been hesitant to share that much personal info with a public database like that but the general public seems to either keep it fluffy in content or not care. Ads on the site do generate interest, but at lower click through rates than any other ad medium I’ve seen.

Twitter has also become laser-hot in the last 2 years and has exploded because of celebrity use and the popularity explosion of smartphones on the US market. Direct P2P marketing is the main method if twitter use in my opinion, and they really don’t charge for it in any way. The downsides here are that your tweets are really only alive for 1 day and then they die, and are taken out of the searchable database if someone is not a subscriber.

Blogs have been all the rage for the last 2-4 years but people have backed off lately because content farms were really making them look bad, content is expensive/time consuming to produce and all the blog ad networks that provided a reliable income from it have either gone under or are paying less than 20% of what they used to or have no inventory. So even if you’re hosting for $10 per month and paying some person in india $5 per article you really can’t make the Google AdSense $ to cover it anymore, and there are few networks paying more than $0.25 per CPM. And since you’re less likley to get blog traffic via search these days you have to build a loyal following, and that is either long hours researching cutting edge news content/analysis or going out and shaking a lot of hands in person. Bloggers typically don’t like people all that much. Also, RSS push notifications were supposed to make Blogs portable to any reader anwhere and instead they just became geeky things body understood and nobody used. Bummer. WordPress (and earlier TypePad and Blogger) were the real catalysts here. They gave regular non-programming people the ability to publish anything they want on the web for free without programming a site or knowing HTML. It was revolutionary until we all remembered how hard the Newspaper business really is and how it is far too time consuming to be profitable. Real bloggers blog because they love it, not to make money. Blogs are also a great way to publish content for free if your business is content, that’s not going away anytime soon.

Blogs were super valuable when they were super influential for Search. Search engines were the marketing darling of 2004-2006 and have slid in ROI ever since. Google has made higher minimum bids a regular practice and people have become desensitized to ads. These super targeted ways of reaching people with relevance have also been taken over by giant companies that used them for branding rather than content relevance and watered down their effectiveness. People have also noticed the spam in search and trust Google results less knowing people work the system. Some blogs gained traction as content/news sources that people subscribed to instead of newspapers and propelled real people into the reporting limelight, the rest became archives of people’s personal lives or were spammy and forgotten. Some people will probably stay with search as their core online activity for the rest of their lives because it made such an impact, but others are moving on.

SEO has been the secret marketing tactic of the last 5 years and it has only lasted that long because it has been so hard to build links for SEO and figure out how the algorithm has changed. Lately though companies have been gaming it more than ever and there is too much knowledge on how to Google Bomb something and people know garbage results when they see them. So, there has been more trust transferred to social networks where people rely on their network of friends to filter the news and just pass on what is really meaningful. This method isn’t about discovery or archiving like search was, it is about instant feedback and the trust of the people you know. Bing has not gained much traction and with Google as the only worldwide player, they will continue to do what they want to maximize profits and favor big companies rather than work on the algorithm and better understanding how people want information. SEO will always be needed and always be challenging.

Email is the old skool way to do things online and time spent in email these days is dropping significantly. People have taken their communication with friends to FB & Twitter and we know how to read/process email a lot faster than we did years ago, so less time is needed. Yet it is still the main method of communication/task management for businesses because of the electronic paper trail it creates for projects/accountability. Real Spam, marketing spam, inbox “work” association and other instant means of communication over the years have tarnished Email’s image. That said, millions of people are still tied to their email as an official method of communication that can reach the most people because it has been around the longest.

Analytics is also a trend but in my opinion this has been the most consistent of all in the last 10 years. It is basically looking at and interpreting data from websites and advertising campaigns and making sense of them in a way to make positive changes in the media/ad choices and web content/development to better serve customer’s and the companies’ needs. I hope more analytics programs allow better/easier integration with all links/ads/impressions across the web because this is the key to understanding customers. There have not been many companies willing to get into this ginormous database product area over the years because it is so costly and complicated to get it right. The looming battle over cookies and privacy could change some of the validity of the data if it means that we lose 50% of the data on visitors. More disclosure is needed with consumers to get a better understanding of how these systems work in order to overcome this.

Display Advertising online is the unpopular element to talk about here but this type of ad had grown dramatically in the last decade. You may think back to old times when Gator or WeatherBug installed spyware on your computer from banners and wonder how it would grow. Well a lot has changed. Seriously. As soon as post impression conversion tracking was created we understood that people see and read banners even though they don’t usually click. Waiting for someone to click is pointless in banner advertising. If you track who views each ad (with a random ID number in a cookie) and then who converts and lands on the thank you for purchasing page that is all you need to know. In this space we’ve also seen advances in brhavioral targeting based on demographic data people share with networks (Like your Yahoo or Google profiles) and retargeting based on which sites you’ve visited in the past and may be interested in again. The end result is that Display advertising works, but only if you buy a lot of it. Like millions of impressions and you track from the impression through conversion and not just the click.

Some recent trends that have fizzled are:

Surveys/Customer sentiment measurement gauges. They’re more annoying than useful for the consumer, pretty much a waste of time even with some small incentive. Unless you pay someone $10-$20 they’re not going to care enough to tell you the truth. Nobody wants to say something negative that gets someone else’s job in trouble. If you pay attention to your feedback through customer service you will probably find out more useful information.

Feedback/Comments/Rating Systems. These are a good tool if you have an engaged customer base. I’ve seen some work well like Amazon and Nordstrom, but others like travel sites and restaurant ratings just get slurped into Google as content and your site doesn’t benefit from the functionality. People do trust ratings from customers (real people) more than ads or third party rating systems.

IM Instant Messenger. Some people still use IM as a method of chat, but it never became the hub for activity that we thought it would. AIM and Yahoo had it after ICQ and never really capitalized on it. GMail and Facebook added this as an additional functionality making the original IM programs kinda obsolete when people could do everything in one place.  Skype is the one standalone place this may live on. Skype’s claim to fame is video calls via internet and free voice over internet calls to anyone else online with Skype. Yahoo IM does this too but nobody really seems to use it there. Maybe they should have had that featured in their TV commercials.

Affiliate networks. These were all the rage in 2003-2004 and they have been a big reason for the prevalence of spam in blogs, social networks and search. Farming your online marketing out to people who are not responsible for the brand of your company and will do anything to make a buck is an invitation to get played. A lot of the payouts have dropped from these systems have been shut down or have less than 20% of the payout they once did for a conversion/lead. The message here, don’t trust anyone who says it’s “easy”. Some high level revenue sharing or lead trading relationships between large companies make sense but should always be handled in person by people not through 3rd party electronic networks.

Video may be a success for many people (including cats) but for most of us (and companies) it is still out of reach and vastly misunderstood. From a behavior standpoint, people can’t watch video/audio at work while at their desk because it is too noticeable that they’re not working (the largest audience base that the internet has) and the video content is not searchable because there is no transcription of the content automatically to make it searchable or translateable into different languages. Most people don’t know how to edit video and companies don’t want to pay thousands of dollars for this either. Editors may also have a tough job going through thousands of hours of content in the future to find the meaningful stuff. Professional content creators like TV/Movie studios still have the upperhand here in creating really good quality video and we may not have affordable tools and education for a while yet. Monetizing it is another problem and YouTube is an example of really popular sites not making enough money to really pay the bills since they rely on Google to subsidize them. I think Video may get easier if there are good online video editors (with good tutorials) that become available cheaply.

The Question & Answer format completed by volunteers/users of the site. Yahoo Answers is moderately successful from a search perspective but the general public never caught on and a lot of the answers were pretty bad. I never understood why companies never took advantage of answering questions as a way to create permanent links to their site for people looking for their products/solutions. Now Quora is trying to do the same thing somehow combined with Twitter. More companies seem to be embracing it but again the success of the site depends on the quality of the answers and without paying someone how good do you think it will be when the newness wears off?

Wikis. I wanted Wikis to be big. I am such a fan of Wikipedia and I also work in an industry where sharing content is a daily occurence. Wikis help when you need a reference material to be updateable quickly within a group. It served the encyclopedia niche really well and not many other companies needed something like this.

Now that I have rehashed the past and the present, where does that leave us on the footsteps of SXSW needing to understand what is next?  Some ideas I have may not be fully developed, but that is what the future is all about, speculating.

1. We need more databases, more user friendly-visually configurable-cheap-secure-web based databases. We have a lack of public knowledge about how to collect, maintain and report on multiple databases in marketing. This has only been for the IT and Web departments in the past, we need to free the data to become accessible to more people, although probably not everyone wants that. Some people may find that overwhelming and it does take experience to understand multiple layers of marketing and the effects it has on the data. We also need to find more user friendly ways to link separate database systems like analytics with accounting or orders and web ad servers. We need to resolve traffic flow/identity across all of them in order to understand things better, and we need more processing power to do this. It is also getting easier to collect data at so many points in everyone’s day on so many networks. We need ways to process all these potential new forms of data from wearable sensors to car/directional related sensors to all the video people post online that has no text for content. Basically we need to find better ways to process and understand all this data.

2. Mobile use is exploding but in my opinion very few web functions work well on phones due to the small screen and the variable network connectivity. Email works, Facebook also works. Twitter was made for phones. Advertising was not. How to monetize this channel is a challenge, as is how to reach new consumers in a relevant way while on these devices. One thing is clear, a mobile phone is with someone all the time, possibly even while they sleep, and people very loyal to their smartphones. The checkin-foursquare thing has caught on for some functions and some needs but it is not widely excepted. (more relevant to brick and mortar businesses offline) There is still frustration when full website functionality isn’t included in a mobile design and there is confusion between apps and mobile websites for consumers and marketers. This all may get resolved in time because of popularity. A Nielsen poll found that 41% of the respondents used their cell phone in the bathroom. We’re also not sure if tablet computers fit into this category or not yet. We will see more advertising opportunity on Mobile in the future but it should always be paired with regular Display & Search advertising (and offline) to make the connection.

3. Cloud computing, bye to VPNs and servers and hello to clouds. Also hello to more hacking, more data loss and more outsourcing of IT jobs to somewhere else. This can be a good technology to make your content/data/work available wherever you are.

4. QR codes, maybe? Eh? We get how to use them, not sure what the point is for the consumer? Coupons? Wireless rewards points systems? How do you get this data into your existing order and web analytics database systems?

5. Internet on TV and vice versa. The internet being an on demand database of content you can choose to watch at any time makes a programming schedule obsolete. Live events will have a certain lure but otherwise people will use Google TV, Apple TV, Netflix to access content while using the web in their living rooms all at the same time. Video chat will be better when its on your TV too. This will be very tricky for advertisers. In an on-demand world nobody will wait for a commercial anymore and it will have to be all subscription based. Companies will have to partner with content creators to get products seen, mentioned if there are no commercials.

6. Fragmentation. People may get tired of the constant need to reformulate their entire communication method with family/friends/work every two years and just pick something and stick with it at some point, but in the mean time we will have a lot of noise from a lot of signals all clamoring for a consumer’s attention and that means that they listen less to each of them. This makes marketers have to work harder to be louder and more frequent in their messaging and in turn makes consumers turn it off or change methods yet again. I find that to combat fragmentation you have to advertise on more mediums to be seen in more places. Billboards, Radio, Online & Mobile for example all at 4:30 pm advertising the evening news.

7. Task management - this is the factorization of web and white collar workers. Log into a closed system and a task list tells you what you have to do today and how long you have to do it. No critical thinking allowed without flexibility and more of a contractual-short term-task relationship with highly skilled workers. This could mean people work from home from anywhere, but forget the benefits of collaboration or connection with your job. It may improve productivity to a point, but at some point it is hard to motivate someone to do something as fast as possible when they’re not personally invested in the business (or getting rewarded that way) and working remotely.

8. Digital Archives - People are not able to really keep tabs on all the digital information in their lives. I feel this with digital photos. If Flickr didn’t exist with all my photos tagged and dated I wouldn’t be able to find anything with image names like DCIM21531 and file folders of random events on my computer that aren’t backed up. (ok that isn’t true, my tech husband just started an automated backup on an external drive he put away in a safe place, but until now it had never happened before). What about medical records for someone’s entire life history? What about family history? Emails, correspondence, daily diary blogs and other forms of electronic data? My brain can’t really remember everything and creating an archive to refer back to is an appealing idea. I also feel like I need a secure place to subscribe to in order to save/manage all this content and I’d pay for it gladly. Especially f they sent me a backup version of it on a drive in the mail. It also would serve as an archive for people if someone passes away.

9. Content managers – they used to be called Editors and paid a lot more money. Now they get paid to know the content subject matter and be an expert and may be responsible for writing the content themselves.

Bounce Rates on Google Analytics

I was just discussing what Bounce Rates were in Google Analytics and thought this could be a potentially confusing term and would be helpful to blog about. I also work with WebTrends .

We have a client that has a site with us that had a high bounce rate and a high exit rate. (50% for some pages) Anything above 20% would be something worth looking into in my opinion, but the differences change depending on the site, product, sales process and design so everyone has their owne level of normal as a benchmark and you try and improve from there.

They wondered if this Bounce Rate was an issue, as many clients would.

The thing is, it may not be an issue to have a high Bounce Rate because if people land on a product description page and then click to buy (or in our case, apply) is this really bad?

Well the qualifier for a Bounce Rate is that they viewed that one page and left. This does not include someone clicking on a link on the page to buy/apply. That would be an exit. They would not have viewed any other page on the site or interacted (clicked) anything else either. This bounce would be from hitting the back button or clicking the x button on the browser.

Exits from the site are considered people who have viewed more than one page and finished their visit. They may click to apply/buy or they may x-out of the window or they may reload the home page. (just a few of many examples) One tricky thing is when someone gets a site that launches a new window for a page you click on. That is typically an exit and new site visit. 

So, is this good or bad? For this client I think it is ok, because they are very stringent about who they are looking to hire and when people see the extensive requirements I am pretty sure most people would realize whether they had a shot at the job or not very quickly and either click forwards in the path to apply (on an Applicant Tracking System application site, (don’t ask, too many sites linked with too many processes)) or back out. It is very straight forward and very few other options are on the page.

How do you reduce bounce rates?

I never hear people talk about strategies to get more qualified traffic to these pages, I just hear about providing more info on the page to help them convert. That is a great strategy and if you can link exact search terms to the appropriate products/jobs with a page designed for one clear desired action then you are doing well. If you can suggest other related alternatives on the same page, maybe on the right sidebar, you are doing even better. If you have an email sign-up that says, not what you are looking for? Sign up here and we’ll email you when new ones come up. Great. But if you have a lot of traffic bouncing even then, you may want to look at the source. What words are your pages optimized for and why do those keywords not match what you’re providing or asking people to do? Maybe search is also not the right medium to find people based on the Google Insights search volume for that term and you are getting similar searches/clicks but not for what you offer. Maybe reel in the search efforts and go for more qualified means of finding these specific people like email, targeted display ads (by content/interest, behavior or location) or offline communication. (gasp!)

Remember Google Analytics (or any analytics package) is not just about a bunch of numbers and bunk. If you can’t figure out what the human behavior is behind the numbers or what the actual user/customer wants they don’t mean much of anything except that your site is up and running.

Baby Boomer Marketing

Everyone in the business world is a buzz about marketing their products to U.S. Baby Boomers (people born between 1946 and 1964 after WWII and in that big baby boom that happened post war in peacetime) They are a hot target for companies these days for the following reasons:

1. There are far more of them than in coming younger generations.

2. They have money. They have been ardent savers for their retirement and now need somewhere to spend it.

3. They are mostly in better health than past retired generations because of advances in medicine and will live longer too.

4. They still have energy and are interested in new fun things, provided it’s not too out there.

 So, how do you find out if your product or service is a good fit for the Baby Boomer generation? Well a new survey report is out today that has some answers to what Boomers like and dislike and how different they are in these categories from other generations. From the center for Meida research; See below:

BoomerView Snapshot Percent of Baby Boomers who…
	% of Boomers	% More/Less Likely than All Adults
Personally carry any medical, hospital or accident insurance	76.8%	+6%
Voted in a federal, state or local election in the last 12 months	55.0	+22%
Have a regular (2+ times weekly) exercise program	42.4	+2%
Played the Lottery in the last 12 months	41.0	+18%
Say “Preserving the Environment” is a very important guiding principle in their lives	40.7	+11%
Believe they will be better off financially in the next 12 months than they are now	39.1	-5%
Live in a household that owns or leases at least 3 vehicles	35.6	+31%
Did home remodeling in last 12 months	30.8	+21%
Signed a petition in the last 12 months	21.7	+21%
Own a Giant Screen TV (>42″)	13.9	+10%
Source: MRI’s Spring ’07 Survey of the American Consumer

Additionally, the summary notes that:

• Almost four in 10 Boomers believe that they and their household will be better off financially one year from now. And, close to 90% believe they will be either financially “better off” or “the same” one year from now.
• A fairly large portion of Boomers are potentially unprotected financially should they face serious medical issues. Almost one-quarter (23.3%) report that they have no personal medical, hospital or accident insurance.

The U.S. Mortgage & Lender Mess

The mortgage and lending crash just keeps getting worse. I don’t know which is worse, the people not reading the contracts they sign and not understanding the terms involved with a baloon payment or adjustable rate or the banks and financial companies offering such bad manipulative terms. It seems like no one really did any research before buying these properties and now they are all foreclosing. I was just reading that the number of forclosures has doubled in the past 12 months for the month of September year over year. Yikces! And they say this isn’t the last of it. How many people are going to be loosing their homes and foreclosed on at Christmas and over the holidays? This is such a disaster for this country as a whole and a little embarassing to the rest of the world. Here we are suposedly the most wealthy nation in the world and people are loosing their homes. It’s sad and it’s the result of people not doing adequate research and getting bad mortgage advice from predatory lenders. Do yourself a favor and stay renting until you have 20% to put down as a down payment on a home and then do your research and go with a lender who has lent to a friend who has not had any problems with their mortgage and has had it for more than 5 years.