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SES London 2009: Interview of Napsters Jeff Ferguson


Yesterday I caught up with Jeff Ferguson, Director of Online Marketing at Napster and got his insight on his upcoming session at SES London: “Pay-for-Performance: Winning Strategies for Advertisers and Agencies.” Check out our conversation below.

[Manoj]: Why do you think there is such a difference in terms of the compensation model between Paid and Organic Strategies?

[Jeff Ferguson]: The difference is due to the type of work needed to make them happen and how the results are measured.

With Paid Search, it’s easier because you’re managing an ad campaign and there (usually) isn’t a lot of heavy lifting that doesn’t look like anything else besides running an ad campaign.


With Organic Search, there are so many more activities involved that look nothing like the activities that Paid Search even touches. Sure, there is plenty of keyword research and campaign monitoring, but SEO usually has a whole other layer of efforts that looks more like programming than media planning. Plus, even during the stewardship phase of an SEO campaign, you’re still very much in a “pray for placement” situation that does not allow for an entirely direct correlation to the efforts the SEO team has put into the campaign.

[Manoj]: What do you think the ideal compensation model should be for agencies and consultants focused on Organic Strategies?

[Jeff Ferguson]: From an agency standpoint, I think Organic agencies are really looking to get their initial work covered and then move into something that is more akin to a running maintenance tab rather than a true pay for performance situation. As a client, you always lean towards pay for performance, but even then, we’re always a little suspicious that we’re being charged for traffic we would have received anyway.

Ultimately, I would think that a contract that involved a setup charge, a low, maintenance retainer, and a performance bonus based on mutually agreed upon baselines and increases would satisfy the concerns of all involved.

[Manoj]: How important is it for agencies to leverage both organic and paid strategies together in order to achieve success for their clients?

[Jeff Ferguson]: You really can’t do one without the other and anyone who tells you different doesn’t know their gig – it’s that simple. Even if you have one agency, two agencies, or doing one part outside and another in-house, it is paramount for the teams to work together on planning and sharing of data, or you’re wasting money on the entire effort.

[Manoj]: Can you discuss the importance of a strong web analytics framework in order to truly measure the performance of all mediums?

[Jeff Ferguson]: You simply can’t live without it in this business and anyone who says they can is fooling themselves. I’ve spoken to plenty of new businesses that are enjoying the benefit of a popular product and stomp about stating that they have no need for the level of detail provided by a good analytics package because business is “just fine.” If they’re doing “just fine” without one, then they should know that they could be “great” with one in place.

I can’t stress enough the “performance of all mediums” part of that question because I know there are so many companies out there that either have no clue at all where their traffic is coming from or are so fixated on pixel fires that they don’t do the math and figure out that they are double or triple counting the activities.

[Manoj]: Do you find that there are any big differences between SES in London vs. SES in New York or San Jose?

[Jeff Ferguson]: This will be my first SES London, so I’m looking forward to seeing what besides the scenery could be different at the two shows.

Data Quality and Predictive Analysis

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Predictive analysis can be an extremely useful tool for many different types of businesses. In fact, where there is any type of data warehousing there should be implementation of a business intelligence program that includes predictive analysis. However, in order to learn how your business can profit from this facet of business intelligence, you are going to have to understand exactly how and why predictive analysis works.

The main idea of predictive analysis is to use current and past data to predict future events. The goal of the statistical techniques used in predictive analysis is to determine market patterns, identify risks, and predict potential opportunities for growth. In addition, data relationships can be reordered to determine the most plausible outcome of possible solutions and patterns can be recognized that might have the power to alter the outcome of a probable event.

One of the most important aspects to reliable predictive analysis is data quality. The information provided by predictive analysis can only be as effective as the abundance and accuracy of data available. Data quality is absolutely necessary to the process of predictive analysis. In order to attain accurate business intelligence, companies must maintain quality data. Predictive analysis requires both past and current data about many different things including customers, businesses, products, and the economy. All of this information is used to draw relationships and patterns between sets of data. If the data is accurate and well maintained, then the business intelligence produced will be high quality as well.

In the past, predictive analysis was mainly used for newly emerging technologies. However, in recent years these practices have quickly started to become common for mainstream businesses. There are a few differences between the ways that these techniques are currently used and how they were used in the past. One of the main reasons for these differences is why companies use predictive analysis. In the past, these techniques were used for long-term analysis of market and consumer trends. However, in recent years, the mainstream implementation of predictive analysis techniques has tended to focus more on immediate, tactical uses. Because of the “real-time” nature of this business intelligence, more and more companies are using predictive analysis as standard in making predictions about particular industry markets and consumer trends.


Some of the industries that have started utilizing these business intelligence techniques include telecom, insurance, pharmaceutical, and financial industries. All of the companies in these different business sectors have been able to use predictive analysis to make the right decisions to move their businesses in a positive direction. These processes can help with economic predictions as well as predicting the behavior of businesses and consumers. This type of information, made available in an efficient manner by business intelligence, is understandably invaluable. It can turn a simple prediction into intelligence that is more precise than even the most educated guesses. Predictive analysis with appropriate attention paid to data quality has made it easier than ever for businesses to make accurate market and consumer predictions and thus smarter decisions for the growth of their company.

Lil Wayne Tops YouTube

Hitwise has compiled a list of the top 50 search terms entered into YouTube’s Web site search for December 2008 reveals that music-related search terms dominate YouTube queries. This custom data, available for the first time, shows that the majority of searches on YouTube are for a band, an artist or a song. Searches for the rapper Lil Wayne ranked first in December 2008.

The top 50 search terms on YouTube accounted for 20 percent of the site’s total search volume in December 2008. Behind music searches, Internet personalities were next most popular searched, followed by miscellaneous searches and then TV searches.

One common trend was the rise of Internet celebrities — particularly Fred, who portrays a self-described 6-year-old with anger management issues. The search term “Fred” ranked as the seventh most searched term overall. Fred is a reminder of the “Internet celebrity” phenomenon (for example, Lonely Girl), where individuals who previously would have been unknown can rise to celebrity status among a niche audience. The search term “Charlie bit my finger” this referring to a popular viral video, ranked 31st.

December 2008
lil wayne
twilight
beyonce
single ladies
soulja boy
chris brown
fred
swift
britney spears
love story
family guy
akon
hannah montana
jonas brothers
akon na na na
jesse mccartney how do you sleep
womanizer
beyonce single ladies
heartless
hot n cold
Source: Hitwise, an Experian company

WPP Invests into Omniture

WPP and Omniture Inc., today announced a strategic partnership that will provide clients with more-effective insights globally across both digital and traditional media channels. As part of this partnership, WPP is making a long-term $25 million investment in Omniture common stock.

The two companies will collaborate on technology development, on sharing data and information and in consulting services. The collaboration will focus on providing chief marketing officers and other marketing executives at clients, with greater consumer insights, supported by new technology. This will allow marketers to increase their revenue and profit returns from online marketing and to manage and optimize their overall marketing expenditures.

WPP companies involved in this partnership include G2, OgilvyOne, RMG, Wunderman, Enfatico, specialist agencies Schematic, VML and ZAAZ, Group M, 24/7 Real Media, Kantar and Bridge Worldwide.

Key elements of the strategic partnership include:

  • Joint approaches to mutual clients to develop enhanced analytical solutions
  • Joint development of technologies and solutions, including the integration of Omniture and WPP technologies, data and products
  • Sharing of marketing insights and consulting best practices
  • Deployment of Omniture consultants inside WPP companies
  • Training of more than 500 WPP employees on Omniture products and solutions, within the first year of the relationship

Specifically, WPP and Omniture have agreed over the next 12-18 months to integrate many of WPP’s marketing technologies, data, insights and information products into the Omniture Genesis platform. These integrations will include:

  • Open AdStream (24/7 Real Media’s advertising management system)
  • Decide DNA (24/7 Real Media and GroupM’s search engine marketing systems)
  • 24/7 Real Media and GroupM’s custom media audience network
  • TNS Compete™ (competitive web benchmarking data)
  • TNS Stradegy™ (multimedia channel advertising occurrence and expenditure data)

Interview of Sabrina Parsons, CEO of Palo Alto Software

Earlier this week I had the opportunity to catch up with Sabrina Parsons, CEO of Palo Alto Software to discuss Email Center Pro, a web solution that tracks and analyzes multiple email address conversations. Check out our conversation below:

[Manoj]: Can you briefly describe your inspiration behind developing Email Center Pro?

[Sabrina Parsons]: We went through the classic build vs. buy decision when we were looking at tools to improve our communication with customers and partners. We had built a very basic Web-based email product, which we all called “the email center.” About five years ago we knew that we either had to find a new solution, or rebuild the basic solution we were using, as our sales volume went up and we needed a more stable way to communicate via email with our customers and partners. At that time we researched the marketplace and just did not find anything that provided the features we needed. There were customer service help desk options that provided the ability to “ticket,” and there were large CRM solutions that provided too many features we did not need at too high of a monthly cost. So we turned back to our basic email center and re-vamped. We added more of the features we needed, such as the ability to add internal notes to an email, and the ability to assign emails to a certain person. We also rebuilt the system to make sure that it could handle enterprise level email, and of course was secure and redundantly back-up.

[Manoj]: How will Email Center Pro make individuals more efficient?

[Sabrina Parsons]: Email Center Pro is built for efficiencies and for improving work flow. Take your web site, Web Analytics World. I noticed that you have placed your personal email, mjasra@gmail.com as the contact email for people who want to advertise with you. Right now I assume that you handle all the email, and respond to any incoming inquiries. Imagine if you decided you wanted to hire an outside sales person to handle advertising requests. You would have several options:

  1. Leave the email address as is, and forward incoming requests to the ad sales person. This way you could know about all the requests coming in, and then you would forward to the sales rep. Not efficient.
  2. You could make advertise@webanalyticsworld.net the contact email, and then both you and the sales rep could get those emails. You would then need to triage any email that you felt needed special handling or that you wanted that rep to have background information. You would have to forward the email with your message, and then hope the rep responded in a manner that pleased you. There may be a time when an email comes in from a known associate for instance, and you answer it right away – not realizing that the rep has also already answered. Because you both live in your separate email clients you get no visibility into how fast the rep responds, what the answers look like, and whether this rep is representing you well. You could ask the rep the bcc you on every response – but this would clutter your email client even more. Definitely not efficient
  3. You can use Email Center Pro (ECP. You create the advertise@webanalyticsworld.net and either forward it into ECP or use pop access to pull it into ECP. You then create 2 users accounts allowing both your rep and yourself to login and monitor emails. You can create some templates with responses to frequently asked questions — and thus have far less training time for the rep, and make sure you are represented the way you want. You can monitor all out going messages, and you can add notes to any message that the rep can see and reply to — but are always kept internally. You could set expectations about the speed to respond to a request, and using our metrics easily see the reality of how fast responses were sent out. You would no longer have to deal with all the spam associated with an email address that lives on a web page, and you would have all the visibility into your business without the extra email fatigue. Ahh. See how efficient that is!

[Manoj]: How does Email Center Pro integrate with email clients such as Outlook?

[Sabrina Parsons]: Yes. You use Outlook – if it is your client of choice for all the email you deal with exclusively. All email coming into your name@yourcompany.com should go to whatever client you prefer. Email Center Pro is used for general. shared email addresses. ECP can be set up to send alerts (daily or hourly) to your Outlook to inform you when there is a message that you want to know about, or a message is assigned to you. Outlook has some collaboration features if you use Exchange, but for the small business Exchange servers mean extra cost, and lots of IT nightmares. ECP is simple, fast, efficient and VERY cost effective. ECP is an “aside to Outlook” solution for those that want to manage more than just email, but also reduce productivity costs, improve customer email communication and increase ROI.

[Manoj]: Are there any types of reporting metrics available for Email Center Pro?

[Sabrina Parsons]: Yes!! Lots and Lots. Here is a list of the key metrics we provide to ECP account holders:

  1. Mailbox Traffic Distribution- Do you get more email on Mondays than Wednesdays? Do you send more messages in the morning or the afternoon? This bar chart shows average distribution of traffic received and sent by time of day, day of the week, or month, for the mailbox and date range selected.
  2. Mailbox Response Time – This table and chart shows the response times for any mailbox during a given time period. Customize by user, mailbox, and date range. This is an essential management tool. Mailbox Traffic Timeline – Gives a detailed, interactive timeline of mail sent and received for a particular mailbox for the date range selected. See detailed data for a single day, or for the entire time you have used Email Center Pro.
  3. Mailbox Breakdown- This pie chart shows the breakdown of unassigned and assigned messages (by user) for a given mailbox. You can customize this by mailbox, or choose “Any Mailbox” to see assignments across all Inboxes.
  4. User Activity- Shows specific data for each user for the mailbox and date range you choose, such as the number of conversations assigned, number of messages sent, and average response time.
  5. Conversation Tracker- Track starred conversations. See most recent activity on the conversations you care about most.
  6. Account Usage- View a summary of your account usage, in terms of storage, emails received and sent, and your plan level.
  7. Recent Actions- See what’s going on right now in your account, including the most recent logins, responses, notes and tags added, and assignment of emails. Click the conversation or message link to see the full details.
  8. Saved Searches- Saved Searches let you quickly locate conversations that match criteria you choose, using keywords, assignee, mailbox, date received, and more. Click any Saved Search name to see its matching conversations.
  9. Mailbox List- Displays a list of all mailboxes and a count of all conversations in the inbox. div>

[Manoj]: Is Email Center Pro capable of handling a large email load in the case of larger organizations?

[Sabrina Parsons]: Yes. We use it here at Palo Alto Software with over 40 users and thousands of messages in and out every day. We have accounts that have users in the 30′s and 40′ with an enormous amount of incoming and outgoing mail. The service is built to handle enterprise level mail volume, and is hosted on the Cloud using Amazon Web Services. It is secure, redundant, and backed-up with a 99.99% uptime.

Top 10 Most Popular Twitter Applications

The “Blending the Mix” blog has come up with a very extensive list of the 100 Most Popular Twitter Applications. The list is based on the most bookmarked applications on Delicious. The top 10 most popular Twitter applications are listed below but do check out Blendixing Mix’s blog post for the entire list.
  1. twittervision: A real-time geographic visualization of posts to Twitter. You must have a location and an image defined to appear on the public feed.
  2. twitterfeed: twitterfeed can post directly to twitter, identi.ca, custom laconica installations, and via Ping.fm, simultaneously to the many services supported by Ping.fm.
  3. twhirl: twhirl is a desktop client for the Twitter microblogging service. Most of the features available on the Twitter website are accessible through twhirl, too. Plus, a lot of usability enhancements have been added.
  4. tweetscan: Tweet Scan searches Twitter, identi.ca and other Laconica-based sites with more being added all the time.
  5. twistori: this is the first step in an ongoing social experiment, based on twitter.
  6. twitter-search: There is an undeniable need to search, filter, and otherwise interact with the volumes of news and information being transmitted to Twitter every second. Twitter Search helps you filter all the real-time information coursing through our service.
  7. tweetdeck: TweetDeck is an Adobe Air desktop application that is currently in public beta. It aims to evolve the existing functionality of Twitter by taking an abundance of information i.e twitter feeds, and breaking it down into more manageable bite sized pieces.
  8. twitpic: TwitPic lets you share photos on Twitter. You can post pictures to TwitPic from your phone, our API, or through the site itself.
  9. hellotxt: As you engage with more and more networks, it becomes difficult to maintain meaningful involvement with any of them. People need a way to communicate with all of their networks at once, and HelloTxt solves this problem.
  10. twitterrific: Twitterrific is a fun application that lets you both read and publish posts or “tweets” to the Twitter community website. The application’s user interface is clean, concise and designed to take up a minimum of real estate on your Mac’s desktop.

How Yahoo Makes Money 2009

How Yahoo Makes Money: Fourth Quarter 2008 Segment Financial Results

• United States segment revenues for the fourth quarter of 2008 were $1,338 million, a 2 percent increase compared to $1,313 million for the same period of 2007.

• International segment revenues for the fourth quarter of 2008 were $468 million, a 10 percent decrease compared to $519 million for the same period of 2007.

• United States segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $308 million, a 21 percent decrease compared to $391 million for the same period of 2007.

o United States segment operating income before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 includes restructuring charges of $83 million and incremental costs for advisors of $7 million related to the strategic alternatives and related matters noted above.

• International segment operating loss before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 was $368 million compared to International segment operating income before depreciation, amortization, and stock-based compensation expense of $136 million for the same period of 2007.

o International segment operating loss before depreciation, amortization, and stock-based compensation expense for the fourth quarter of 2008 includes restructuring charges of $25 million and the goodwill impairment charge of $488 million.

How Yahoo Makes Money: Q4 numbers