Summary of the book, "The Rise of the Platform Marketer," which contains 9 essential competencies of platform marketing. To buy this book: http://amzn.to/1N7qcCl

1. 9 Essential Competencies of Platform Marketing
Andrew Leone, BS Engineering, MBA, MS Finance
Summary of “The Rise of the Platform Marketer”

2. 2
New Paradigm in Customer Experience
Age of the Brand Age of the Channel Age of the Customer
• 1950’s • 1990’s ~ early 2000s • Today
• National TV
broadcasting
• Take brand coast-to-
coast
• Internet purchasing
• World at consumer
finger tips
• Application of data
& analytics
• Efficient, individual
level targeting and
personalized
experience
• Tide
• Chevrolet
• Amazon
• ebay
• Facebook
• App Nexus
Era
Focus
Firms

3. 3
Goal: Achieve Addressability at Scale
"There were five exabytes (5 million terabytes) of information created from the dawn of civilization to
2003, but that much information is created every two days, and the pace is increasing.”
- Eric Schmidt, Google Executive Chairman
Emerging
Macroeconomic
Trends
1. Individual level addressability
 Reach individuals directly vs. broad segments
2. Addressable platforms have massive reach
3. Ability to deliver via immersive formats
 Population can access media channels

4. 4
The New Addressable Marketing Funnel
Integrated, targeted management of addressable customers throughout the funnel
Awareness
Consideration
Remarketing
Conversion
Digital targeting optimization
Leverage data and analytics to target and maximize spend on
high value prospects in the addressable universe
Differentiated consumer experience
Leverage addressability to create highly efficient and relevant
remarking experiences
Channel optimization
Extension of addressability into channel personalization to drive
increased conversion
Customer remarketing
Effective utilization of addressability for re-engagement and
maximization of customers

5. 5
The Addressability Spectrum
Use data to increase the targetability and relevance of marketing impressions & experiences
Valuable Most Valuable
Low Value Valuable
LevelofIdentification
Level of Knowledge
Low Medium High
FullIDPartialIDAnonymous
• Email
• Location
• Name
• Ad interest
• Add’l data
• Email
• Location
• Ad interest
• Add’l data• Location
• Ad interest
• Region
• Interest in
topic
• Interest
• Location
• Region

6. 6
The Addressability at Scale Ecosystem
• Technologies are connected to large scale publishers to carry out personalized real time targeting
• Less about upfront planning and more about ongoing optimization
Platforms
Publishers
Monetization of their audience
Consumer
Speed, relevance, convenience
Marketer
Access to high value
customers and prospects
Platforms enable the ecosystem by facilitating addressability scale

7. 7
Complex Tech Delivers Personalized Ads
1. When individual browses site, site’s web server returns code telling browser what to display
2. Within code is a link, known as an ad tag that points to the publisher’s ad server
3. It looks inside to decide what add to show
4. Server returns ad to browser; publishers ad server returns code point to supply side platform (SSP)
5. Browser calls SSP which starts an auction by reaching out to request bids from demand sources
6. Demand sources could be Demand Side Platforms (DSP) and/or ad networks
7. DSPs and ad networks look within buyer relationships to find which ad to display and cost
8. DSPs and ad networks submit bid back to SSP
9. SSP executes auction to highest paying ad and passes it back to browser
10. Code passed back to browser serves as redirect ad calls winning DSP directly
11. DSP sends back code for ad which is redirected to marketers ad server, which returns the creative

8. 8
Platform Marketing’s 9 Core Competencies
1st and 3rd Party Data
Marketer
Audience Platforms
Publishers
Nine essential competencies at core of platform marketing
7. Measurement & attribution
8. Technology stack
9. Organization
1. Identity management
2. Audience management
3. Consumer privacy and compliance
Platform Data
Platform Execution
Platform Enablers
4. Media optimization
5. Platform utilization
6. Channel optimization

9. 9
1. Identity Mgmt. is the Key to Communication
Provides the map to knit together disparate data sets into cohesive & valuable assets for an org.
Terrestrial
Identity
Device
Identity
Digital
Identity
Parts of the Identity Graph
• Identity management is about defining
uniqueness & associating experiences and
characteristics
• Identity continuum:
 Anonymous: cookie, device ID, other
digital marker
 Known: name, address, or other physical
identity marker
• Probabilistic identification increasingly
important v. deterministic as device identifiers
more constrained

10. 10
Identity Engine
Centralized mechanism to rationalize terrestrial, device and digital identity
Customer Data Integration Digital Data Integration
A
A
A
A
A
A
Data onboarding
finds CRM audiences
in the digital world
Device Graphs: 3rd
Party assets to
identify uniqueness
across devices

11. 11
2. Audience Management
Discipline of identifying audiences and managing the contact strategy and conversation flow
• Audiences must be managed carefully to cultivate value (incl. ad revenue, data, subscriptions, product)
• Many instances where consumers abandoned publishers b/c experiences ruined trying to monetize
Audience
• Group of
individuals that
can receive a
message or
engage in a
conversation.
Segments
• Individuals with
similar
characteristics
assembled thru
segmentation
Personas
• Representative
members of a
segment used to
help marketers
relate to that
segment
Profiles
• Statistical
summaries of
elements making
up a segment
Model Scores
• Analytic driven
customer
attributes used to
inform targeting
and
personalization
decisions
Audience
Key Definitions

12. 12
Segmentation Best Applications
Some segmentation dimensions are more suited for strategic, some more tactical
Dimension Definition
ProductDevelopment
InvestmentDecisions
MarketAnalysis
Positioning&Analysis
ProgramDesign
IndividualPersonalization
Attitudes & Needs What people think X X X X
Motivation What motivates decision X X X
Value Monetary value to organization X X
Life Stage Stage in life (demographic) X
Behavior What people do X X
Life Cycle Stage of relationship w/ org. X X X
Strategic Tactical
• Segmentation will directly create business returns
• Thinking of segmentation as a substitute for targeting
• Creating segments to purely understand a conceptual mind-set or persona
• Excessive focus on demographics
• Undue absorption in the segmentation’s technical details
Common
Segmentation
Disappointments:

13. 13
Audience Management Framework
Best segmentation strategies are multidimensional; support customer journeys and cut across channels
Segmentation / Model Description Primary Inputs Uses
Enterprise segmentation
Attitudinal, behavioral and
demographic segmentation
scored across prospects and
customers
Customer survey
Customer behavior
Demographic overlay
Product development
Market analysis
Positioning & messaging
Program design
Value segmentation
Current and predicted
potential value across
prospects and customers
Account & product data
Transaction history
Credit score proxy
Share of wallet est.
New investment
Marketing spend allowance
Customer portfolio
management
Life cycle segmentation
Shows progression from
prospect to multi prospect
buyer
Customer transaction history Consumer level targeting
Program dev. And targeting
Customer portfolio
management
Audience target models
High-value audience flags
driving targeting decisions
(often real time)
Trigger behavior
Remarketing groups
Look-alike groups
Customer level targeting
Next best action models
Real-time updated segments
indicating next best product,
message, offer and channel
to inform next step
Digital behavior
Contextual data
Device data
Online./ offline transactions
Customer level targeting and
personalization

14. 14
3. Consumer Privacy and Compliance
Respectfully reaching the customer; delivering value into the relationship; incorporating full understanding
• Tend to be reactive; try to prevent after something has happened
• In the US, reg. tend to be industry focused (financial, health care)
• 2015 General Data Protection Reg.: indv. privacy is basic right
• Governments also promote thru regulatory agencies
Three main stakeholders in protection of consumer privacy
1. Government
2. Industry
3. Individuals
• Some industries are self-regulating (ex: Network Advertising Initiative)
• US companies should adhere to FTC’s Fair Information Principles
 Protecting the consumer from deceptive or unfair practices
 Basic principals of notice and choice are fundamental to customer trust
• Privacy paradox: personal data drives rich experience, but creates vulnerability
• Need to adopt privacy-protecting tools & practices
 Updated anti-virus, run latest versions of software, browser controls, etc.

15. 15
Tell the Brand Story
Customers have access to robust information on data breeches; better to communicate effectively upfront
Notice v. Transparency
Tell them Show them
Fixed / non-dynamic Omni-present
Text only / text heavy Text + imagine + video
Notice for transparency & control:
Choice v. Control
Binary “opt-in / opt-out” Buffet / a la carte
interestpartyst1Based on User exp./circumstance
Text only / text heavy Customized
Key factors for consideration:
• Customer-first approach delivering on
promises made in exchange for personal data
• Development of operating procedures for
online and offline data collection, use
practices, outsourcing, partners arrangements
• Continuous improvements due to changes:
 Technology advancements
 Proliferation of media platforms
 Multijurisdictional requirements
 Consumer behaviors and expectations

16. 16
4. Media Optimization
• Media buying tactics:
 Remarketing: showing someone an add after an action has taken place
 Prospecting; May start w/ 1st party data, but also include 2nd and 3rd party to reach customers
• Publisher inventory quality:
 Context on a page, responsiveness of the audience, viewability of the ad
 Potential fraud: fake clicks are generated to drive growth in ad dollars
• Ad decisioning:
 Marketers or agencies access inventory via: programmatic buying, guaranteed or algorithm
 Algorithms predict in real time the value of an individual impression, based on marketers defined
goal and knowledge of individual to date. Algorithms “learn” as they have more data
 Skilled managers or traders manually optimize campaigns. Best practice is to start broad & refine
The market offers real time, data drive view of customer and context to drive bidding

17. 17
Media Buying Mechanics
1. RTB (real time bidding) buying
Focus should remain on audience and publisher
• Assess what impressions purchased at price in real time
• Not all inventory, formats and publishers accessible
2. Programmatic or API-driven • Uses workflow automation and algorithms for decisioning
• Decisioning happens on the publisher side
2. Guaranteed media • Publishers directly monetize w/ agencies
• Ex: custom sponsorships, content integrations, custom ads

18. 18
Pricing Models
• Cost per lead or acquisition (CPL or CPA):
 Ad network margins high b/c they take the risk to buy inventory and mark-up significantly
• Cost per click (CPC):
 Involved during search before display; clicks in display do not convert well
• Cost per Thousand (CPM)
 Publishers use to sell inventory on guaranteed basis
• Revenue Share or Percentage of Media:
 Primary model for DSPs and API providers; margins range from 10-25%

19. 19
5. Platform Utilization
• Platforms (Facebook, Google, Twitter, etc.) are changing on a daily basis to provide more value
• It is important to not only utilize each platform, but integrate message delivery across platforms
Although platforms will continue to evolve, customers will react to relevant, timely and useful advertising
Audience
Insight
Strategy Planning
Development
&
Launch
Optimization
• Enterprise
segmentation
• Behavioral triggers
and sequencing
• Social interest data
• Cross device ID
• Life cycle stages
• Value score
• Corporate
• Brand
• Product and service
• Media platform
• Creative and
messaging
architecture
• Customer migration
strategy
• Audience sizing
• Experience blueprint
• Media plan
• Creative brief
• Targeting and
personalization plan
• ID management
plan
• Value forecasting
• Measurement plan
• Cross-platform
optimization
roadmap
• Online onsite
• Online offsite
• Call Center
• POS
• Facebook
• Google
• Twitter
• Vertical PM
platforms
• Portfolio
• Experience
• Interaction
• Touchpoint
• Offline attribution
• Device attribution /
segmentation

20. 20
6. Channel Optimization
Call
center
Channels
Social
Mobile
Web
In Store
• Channels are avenue for customers to elect, engage and
manage interactions w/ the company
• Channel Optimization is process companies use to manage
and improve the channel to enhance customer experiences
resulting in increased interactions and conversions
• Focus is on driving incremental improvements
• Need to maintain consistent brand experience across channels
• Customers desire integrated & personal experience
 Dynamic content
 Customization
 Relevant suggestions or content based on explicit
choices, behavior or preferences

21. 21
Automate Optimization via Marketing Stack
Collect  Analyze  Decide  Present  Optimize
• Goal is to create integrated & personal experience for customers:
 Maintaining ongoing relationships w/ each customer
 Develop conversations that better enable companies to understand product and service needs
 Empower customers to determine the topic of conversation
Identity Management
Marketing Database
Workflow Analytics
Content
Mgmt
Mkt
Auto.
Insight
Platform
Decision
Mgmt
Foundational Data
Decision Engine
Offer Message Treatment Time Device
Channel & Media Execution
Collect



22. 22
7. Measurement and Attribution
With proliferation of data, advancement in computer power, companies need to adopt different approach
Adverse, unintended results from old KPIs
• Widening variety of media, sales channels
• Last-touch or last-engagement effective for
direct campaigns only
• Potential overspend on bottom of funnel
Recommend Event Stream approach
• Shape attribution method to resemble
customer journey w/ brand
• Each interaction categorized at individual
level
• Ask/ans. Questions across touchpoints
Potential roadblocks to be addressed:
• Roadblock 1: Organizational silos
 Coordinate across bus. Lines
• Roadblock 2: Identity management
 Investment in robust system
• Roadblock 3: Maintaining data quality
 Data collection, organization, update
inconsistent
• Road block 4: Walled gardens
 Data gaps as customers traverse
platforms (ex: Facebook, Google)
• Roadblock 5: Offline to online data int.
• Leverage third parties (ex: Epsilon)
• Roadblock 6: Ad fraud

23. 23
Measurement Strategy and Testing
Two key outputs: the metric playbook and development & implementation roadmap
5 key components of measurement strategy
1. Complete metrics; nothing out of scope
2. Consistent application and calculation
3. Metrics applicable across all measurement
levels
4. Applicable across dimensions and breakouts
5. Right method for each metric
Effective measurement requires testing
• Systematized approach allows for validation
of key assumptions and to build confidence
• Test results should be cataloged and shared
in centralized way; become strategic asset
• Considerations: intergrated testing
framework, multivariate testing techniques

24. 24
8. Building a Marketing Technology Stack
Technology that becomes part of the stack, is a hub for every other component. Each component will need
to consume data and insights from every other component, channel platform, or other media platform, and
provide data and insights to other components as well
Interconnectivity is as important as any other functional capability of the marketing technology stack.
Workflow
Marketing Database
Identity Management
Data Management PlatformAnalytics Decision Management
Integration
Media Execution Channel Execution
Audience Platform

25. 25
3 Key Components of the Platform Foundation
Marketing
Database
• Used to manage: offline data, online data, structured data,
unstructured data, known data & anonymous data
• Two tiers: 1. data lake and 2. relational database level
Identity
Management
Data
Management
Platform
Any success or failure in these components will be propagated and magnified in other components
• Ability to associate terrestrial, device and digital ID to single person
• Identify graph: understand customer relationship to company
• Event stream: rich understanding of customer journey
• Manages the data activated in channels
• Core functions: audience mgmt. & syndication, BI and data interface
• Three markets: execution, pure-play, experience

26. 26
9. Focus the Organization on the Experience
Experience-enabling operating model designed around what’s right for the customer
• Relationships built on the sum of interactions. Move from silos of touchpoints to integrated journeys
• Strategy should incl: brand experience, interactions, touchpoints, customer value, point optimization
TouchpointsTouchpoints Experience
Execute &
Measure
Execute and
Measure
Execute &
Measure
Design
Touchpoints
Brand
Objectives
Brand
Goals
Corporate
Goals
Product Goals
Online
Objectives
Offline
Objectives
Design
Touchpoints
Design
Touchpoints
Execute &
Measure
Execute and
Measure
Corporate
Goals
Design overall
journey
Translate to
interactions
Measure

27. 27
New Organizational Role
Team needed to pursue opportunities: integration of media, channel and addressability of scale
Chief Customer Officer
Consumer Privacy &
Compliance
Audience
Management
Platform
Utilization
Identity
Management
Measurement &
Attribution
Experience Design &
Creation
Marketing
Technology
Media & Channel
Optimization
• Set data transparency and
control policy for org.
• Track rules & regulations
• Interpret regulations
• Disseminate information
• Define customer strategy &
governance
• Define audience
• Conduct onboarding
• Map & size audience
• Identify & evaluate data
• Procure and intake data
• Support onboarding and list
refresh
• Cleanse, match, integrate data
• Broker platform relationships
• Track & utilize platform
functionality
• Support program information
• Capture and use best practices
• Create measurement strategy
• Manage mkt. attribution
• Manage scenario planning &
forecasting
• Make recommendations
• Understand insights
• Define experience for each key
customer journey
• Develop program and test plan
• Implement
• Define personalization rules &
model
• Develop media/channel plans
• Target audience
• Reallocate budget on perf.
• Convergence of technology &
business
• Single point of control over experience across life cycle
• Nurtures customer centric culture

28. 28
Recommended Reading
Dempster, C. and Lee, J. (2015). “The Rise of the Platform
Marketer”. Hoboken, New Jersey: John Wiley and Sons, Inc.

29. 29
Continue the Conversation
www.Governingthought.com