21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 1

21 CENTURY
ST

MARKETING
MANIFESTO

BEST PRACTICES GUIDE

 21ST CENTURY Best Practices Guide
MARKETING MANIFESTO

Table of Contents
Introduction 3

Modern Marketing Dilemma 5

Current Marketing Challenges 10

Modern Marketing Performance Management 13

Practical Attribution Application 16

Successful Marketing Leadership 18

About Demand Metric 20

Action Plan 20
INTRODUCTION 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 3

Introduction
Marketers have long been challenged to prove how their actions,
campaigns, and initiatives are responsible for generating business
results.
This isn’t a new challenge – late 19th century retailer John Wanamaker,
a marketing pioneer considered by many as the father of modern adver-
tising, once said, “Half the money I spend on advertising is wasted; the
trouble is I don’t know which half.”
Intuitively, marketers understand that their e orts in uence business
results, but marketers have not endeavored to learn the degree to
which they do so for a variety of reasons. Some haven’t had to because
strong business results let them o the hook.
More than a few fear knowing the truth. Others don’t feel they have
the resources to pursue an answer, and still others believe that under-
standing the relationship between marketing e orts and business results
is unknowable with any degree of precision.
The old marketing order believes that it’s too di cult to understand or
measure the in uences holistically during the customer journey.
The customer journey seems like a black box – the prospect enters it
and immediately disappears from sight. We toss content, digital experi-
ences, and every creative tactic we can into that black box, hoping the
prospect stumbles across them.
Sometimes the prospect exits the black box and becomes a customer,
but other times not.
It seems there’s no way of knowing which content, through which
channel, in uenced the prospect while inside the black box, so marketers
must use instincts and what little intelligence we can glean to tweak what
we throw into the black box.
At best, we see some incremental improvements, and there’s tremen-
dous uncertainty about connecting activities to results.

Whatever the reasons, the myth that marketing cannot truly under-
stand the impact of what it does perpetuates.

Challenging the abilities of the marketer is the increasingly complex

customer journey. A larger portion of this journey is intentionally
completed without vendor inter-action and therefore hidden from the
marketer. It is the norm for it to occur across multiple devices and through
a multi-channel media stream.
INTRODUCTION 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 4

Imagine the power of connecting these dots, of knowing the causes and
effects of marketing’s work. The purpose of this manifesto is to express the vision for
this new marketing order and call marketers to it. In this
How much more intelligently could we optimize the multi-channel mix
data-driven, multi-channel marketing world in which we now
most of us use?
operate, marketers can eliminate the guesswork about how
How much farther could we stretch our marketing budgets by knowing
their activities are creating results.
what exactly is and isn’t working?
How easy would justifying the marketing spend be when we’re not
guessing which efforts produced results, and to what degree?
How would it feel to be right at home in an ROI discussion about our
work?
When someone asks, “what have you done for us lately?” to have an
authoritative answer that puts to rest any doubt?

This is the new marketing order, and it’s not futuristic science fiction, but
something marketers can embrace here and now.

To accomplish this goal, this manifesto will discuss the modern

marketing dilemma and status quo, and then describe the different kind
of thinking required to manage modern marketing performance.
MODERN MARKETING DILEMMA 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 5

Modern Marketing Dilemma

In the history of marketing, there has never been a more exciting, chal- A More Complex Customer Journey
lenging, rewarding, and apprehensive time for the marketing profession
Another challenge to the modern marketer is the evolu-
than right now. Clare Price, VP of Research at Demand Metric, puts it this
tion of the customer journey, which now occurs not just
way in the Outlook Study:
through multiple channels, but multiple devices as well.

Multi-channel Marketing
There was a time when marketers would direct mail a
“More than ever before, Marketing has direct control over
piece to a list of prospects, and then wait for responses.
the sales/buying process and with it the customer journey.
Marketers could easily do the analytics and tracking to
That change has given Marketing more opportunity to
match responses to the mailing, determine the conversion
prove its value to the company, while at the same time
rate, cost to acquire a customer, and the ROI. It was easy
increasing pressure to deliver results with measureable
to understand what produced the conversion because,
advances in performance and productivity.”
not only was it the last thing the consumer saw, it was the
Clare Price
only thing the consumer saw.
VP of Research at Demand Metric
When the internet evolved into a marketing platform, the
old metrics were used, with help from cookies and tags
to track everything and detect conversions. Initially, this
The set of things about which the modern marketer is concerned with
approach worked, but as the number of online channels
simply continues to expand. Consider just the tools and technologies
continues to proliferate, the challenge for the marketer
marketers have at their disposal, as illustrated in the Marketing Technology
is to get clarity of insight into what’s happening because
LUMAscape (Figure 1, Page 6) published by Luma Partners in 2014.
of this media stream.
MODERN MARKETING DILEMMA 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 6

FIGURE 1: MARKETING TECHNOLOGY LUMASCAPE; Published by LUMAscape

MODERN MARKETING DILEMMA 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 7

Which elements best create awareness, promote, and produce FIGURE 2: THE NEW MULTI-SCREEN WORLD; Published by Google
conversions?

The influence of the old way of assigning credit for conversion persisted:
last click attribution. This form of attribution assigned full credit for
conversion to the last piece of media in the stream, regardless of how
diverse the media stream was.

But marketers need a much more precise understanding of how all

media is performing, so they can make better decisions and develop
better strategies and tactics.

Marketing Across Devices

In addition to the broadening array of channels
marketers have at their disposal is the proliferation of
devices. Consuming content across multiple devices is
now the norm for most people. It may start with a mobile
device, but often ends somewhere else, as the infographic
from Google illustrates in Figure 2 to the right.

This proliferation of devices is a boon to consumers,

but a challenge to marketers who need to track all the
activity, regardless of the device on which it occurs.
MODERN MARKETING DILEMMA
The Data Deluge & Big Data Marketing
With the proliferation of channels and devices comes a
deluge of data.
For marketing organizations that are already very data
centric, this rush of data is seen as a good thing, although
it’s availability still poses some challenges.
The simple fact is that without data, optimizing the media
mix can only occur through educated guesswork.
To have any sort of precise view about media perfor-
mance requires availability of the data, the systems and
tools to understand it, and the will to go where the data
leads you.
Turning all this data into actionable information
requires skills, bandwidth, or tools many marketers
just don’t have or don’t think are available.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 8
While it sounds simple, exploiting the data in practice isn’t always
easy. The amount of user-level data increases with channels and
devices.
Where once it was relatively easy for marketers to understand
the performance of the one or two channels they were using,
they’re now faced with a barrage of data arriving in real time and
from every direction.
Turning all this data into actionable information requires skills,
bandwidth or tools many marketers just don’t have or don’t think
are available.
To cope, some marketers simply attribute conversion credit to
the last element touched or clicked. This approach, however, is
wholly inaccurate, primarily because the volume of media is so
substantial and varied.
The longer the media stream, and the more varied it is, the
less likely it is that last click attribution accurately reports the
performance of that media stream.
MODERN MARKETING DILEMMA
Marketing ROI and Accountability
No modern marketer disputes that the rules and norms
of marketing have changed with the advent of online
marketing.
What hasn’t changed is the need for marketing to provide
accountability to the business for its performance.
The challenges of the 21st century marketing environment
make accountability more difficult to prove.
It’s unacceptable for marketing to ask the rest of the orga-
nization to just “take our word for it” when asked how
effective its campaigns are.
There’s no shortage of data that marketing can present
to the organization as evidence of its efforts: impressions,
clicks, unique visits, and an entire marketing dashboard of
various metrics exit.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 9
What the organization really wants to know, particularly those in
the C-suite, is:
How do any of these metrics translate into something we care
about?
What revenue is directly attributable to marketing campaigns?
What is the marketing ROI?
What incremental revenue can marketing produce with addi-
tional funding?
Marketing is expected to fully participate in such discussions,
just like the other parts of the organization do.
To address all of these marketing challenges, marketers need
a technology platform that gathers and matches data at a
user level across multiple channels and device types, letting
marketing change the channel mix as needed while still
tracking conversions accurately.
CURRENT MARKETING CHALLENGES 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 10

Current Marketing Challenges

Silos and Multi-channel Optimization
Because there are more marketing channels and devices at our disposal FIGURE 3: MEDIA ELEMENT RESPONSE CURVE
today, the marketing landscape is quite fragmented.
18
With so many digital paths marketers can choose to reach their targets,
it’s almost impossible to understand the impact each one is having. 16

Marketers have tried to come up with ways to measure their efforts,

14
but these efforts at best result in silos.

The silos of marketing data are reflected in the way many modern 12

Conversions
marketing organizations are structured. Today we see separate functions
for analytics, offline, digital, and others. 10

These are essentially silos that reinforce how reporting is done. The 8
result is that there is no single source of data or system of record for
marketing leaders to use to understand how the marketing function is
6
performing.

Marketers often use response curves to predict how a campaign will 4

perform, and they are built on the assumption that past results predict
future performance. A sample response curve is depicted in Figure 3. 2

0
1 2 3 4 5 6 7 8 9 10

Weeks
CURRENT MARKETING CHALLENGES
In a single media element (channel) marketing campaign, a response
curve is a useful tool for predicting performance.
Most modern campaigns, however, are not one-dimensional but
multi-channel.
Marketers that use a response curve can unwittingly become hostage to
it, attempting intra-channel tweaking and modification that at best yields
basis point-sized improvements.
The reason this approach is flawed is because it cannot account for
the influence of other channels on customers who convert.
Consider an email marketing campaign, for which a response curve is
built using past performance metrics. The email send occurs and some
recipients use search to investigate the sender.
A pay-per-click is served to the searcher, who eventually ends up on the
sender’s website where additional content is consumed.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 11
In this scenario, a number of media elements entered the stream and
had various levels of influence.
However, the response curve is deaf, dumb, and blind to their existence.
Using the response curve to optimize a campaign is analogous to diag-
nosing a car’s mechanical problems by looking only at the tires.
Sometimes it works, but usually it doesn’t. Better solutions are needed
for true multi-channel marketing.
Using the response curve to optimize a campaign is analogous
to diagnosing a car’s mechanical problems by looking only at
the tires.
CURRENT MARKETING CHALLENGES
Bringing True Marketing Strategy to the Table
Marketers desire to be part of the strategic planning and decision-making
processes in the organizations they serve. Indeed, marketers can bring
brilliant insights and a unique, needed perspective to the “big decisions
table” within their companies.
The risk for marketers, however, is that the inability to answer some
questions about their work with conviction and authority can jeop-
ardize their leadership role. Ironically, many of these questions seem
very operational, but the inability to answer them precisely creates doubt
about marketing’s ability to contribute insights in other areas. Examples
of these “tripwire” questions include:
What is the incremental contribution of each marketing channel, above
“business as usual?” In the multi-channel world that marketers exploit,
rarely do they all influence equally and outside the influence of other
channels. Yet, it’s important to know the degree to which each channel in
the media stream contributes to conversion. Most marketers don’t have
this data for each channel; just for the media stream as a whole.
If it becomes necessary to increase or decrease marketing, which
channels are candidates and what is the expected outcome? Few
marketers have the luxury of never needing to worry about changing
budgets. Where would cuts hurt the least, or conversely, where would
some additional funding help the most? For most marketers, fluctuating
funding is essentially a controlled experiment where changes are made,
one channel at a time if possible, to see what happens. It’s far more ideal
to have precise marketing performance data about each channel in the
media stream to know in advance what impact changes will have.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 12
How do tactics, devices, and audiences perform across channels and
what is the interplay? Customers experience the media stream across
a variety of devices, platforms, and through various channels. How is
this interaction occurring, and which types of interaction produce the
most conversions? Having this knowledge is essential to optimizing the
mix of marketing tactics, channels, and devices, but since the data is
often in silos, it’s hard for marketers to understand the relationships, let
alone make decisions to leverage them more effectively.
What is the optimal marketing spending mix within each channel
based on a desired business outcome? Most marketers have experi-
ence to tell them that the relationship between spending and results
is not linear, nor is it exponential. But what is it exactly? Largely
unknown, when there is no precise attribution data. When the organi-
zation comes knocking, asking how much marketing needs to spend
to produce an additional $25 million in revenue, it expects an answer
from marketing that is more than just an educated guess.
Each of these questions is a legitimate, fair question for marketing. It is
important for marketing to have the acumen and ability to answer ques-
tions like these if they want to retain their seat at the big decisions table.
When the media world was much simpler, marketing could answer them
pretty well. In the 21st century, the complex media and device landscape
has made the answers to these questions more elusive, at least when
20th century approaches are used to find them.
In fairness, answering any of these questions with precision was once
out of reach, but the environment has changed. The answers are avail-
able, if marketers are willing to seek them.
MODERN MARKETING PERFORMANCE MANAGEMENT  21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE
Modern Marketing Performance Management
Marketers understand attribution, at least conceptually, and all marketers
have a desire to know how to attribute their efforts to results.
In marketing campaigns, what typically happens is that the marketing
measurement methods are set up for each channel, and when someone
converts, credit is given to the last element in the media stream.
This last click attribution approach, however, is inaccurate, giving
marketers a false sense of precision, because the decision to convert
was driven by the entire media stream that users are seeing, not just
a single element. There is a better way.
Data-Driven Advanced Attribution
This approach very accurately allocates credit across the full stream of
media that a user sees as they are going through the purchase funnel
and interacting with content. Data-driven attribution helps marketers
know what pieces of content or media elements are really responsible
for someone converting, and to what degree.
Marketers understand that different aspects of a media campaign have
different goals. Early in the campaign, the goal is usually awareness,
which other elements harvest later in the campaign.
13
Because of these differences, marketers need to consider the whole
stream of media through the dimension of time, as buyers are consuming
it. Using data-driven attribution, fractional credit for conversion is
allocated to those media elements that are tangibly responsible for
helping drive someone toward conversion.
Marketers can now know which ad units were responsible for conversion
and how far out they were seen from the conversion event. They can
identify the media elements that were “promoters” – moving interested
prospects toward conversion, and of course, which media element(s) had
the greatest influence on conversion. Data-driven attribution provides
marketers with accurate and actionable marketing data.
Data-driven attribution isn’t difficult to understand, but it represents a
change in thinking and a new way of getting clarity on what’s happening
within a marketing campaign. Last touch attribution is a faulty way of
measuring results, providing a false sense of precision.
Data-driven attribution provides clarity on exactly what’s happening
with a marketing campaign, enabling marketing to make better deci-
sions, which leads to better strategies and tactics to improve response
and conversion rates.
MODERN MARKETING PERFORMANCE MANAGEMENT  21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 14

Not Your Father’s Marketing Method

In this age of rapid commoditization of products, democratization of infor-
mation, and with consumers controlling how much marketers can influ-
ence their decision process, advanced, data-driven attribution creates a
strategic advantage.
What hasn’t changed in this modern marketing era is that marketing
success depends on its ability to drive awareness, interest, desire, and,
ultimately, action.
This produces some short-term results, but the pendulum ultimately
swings too far to demand harvesting, causing marketing results to
shrink for one simple reason: too little awareness building is occurring.
When this realization sets in, the pendulum swings the other way, often
too far toward awareness building, because decisions about where to
invest the marketing spend are simply reactions after-the-fact to dwin-
dling results.

What has changed is this process now occurs in a more complex envi-
ronment, across multiple channels, devices, and at greater velocity.

The internet has changed almost every aspect of the marketer’s work-
bench; things like speed, reach, targeting, and complexity.

The sands of the marketing landscape are shifting under the marketer’s
feet, requiring tremendous agility.

In the old way that marketing executed campaigns, conversion credit

usually went to the bottom of the marketing funnel activities, with top-of-
funnel activities getting little or no credit.

Data from the bottom of the funnel has always been easier to get. Making
campaign decisions on this data leads to heavier and heavier investment
in demand harvesting.
MODERN MARKETING PERFORMANCE MANAGEMENT  21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 15

Real-Time Marketing Measurement

Without the data a data-driven attribution solution provides, marketing
organizations will continue to ride the pendulum between demand
harvesting and awareness building, sometimes coming close to the ideal
balance, but always guessing and often erring.

Even when a marketer gets the balance right, it’s always temporary
because the optimal media mix is a moving target, and the old ways of
managing campaigns is analogous to driving forward by looking in the
rear-view mirror.

Having an attribution platform in place that measures how everything

is working in real time produces better results and creates a signifi-
cant competitive advantage.

Without the data a data-driven attribution solution provides,

marketing organizations will still find themselves riding the
pendulum between demand harvesting and awareness
building, sometimes coming close to the ideal balance, but
always guessing and often erring.
PRACTICAL ATTRIBUTION APPLICATION
Practical Attribution Application
As data-driven attribution sounds great conceptually, but how real
is it? Concepts, while interesting, can only deliver value when they
become real.
As a solution, data-driven attribution is just beginning to emerge from the
“early adopter” stage of the solution lifecycle.
While adoption is not yet widespread, there are organizations like Blue-
stem Brands that are using it, and there is much to learn from their
experience.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 16
CASE STUDY / BLUESTEM BRANDS:
ADVANCED ATTRIBUTION
Bluestem Brands, Inc., a top 100 retailer, is headquartered
in suburban Minneapolis, and is the parent to three fast-
growing eCommerce retail brands: Fingerhut®, Gettington.
com® and PayCheck Direct®.
Scott Holthaus is the Digital Marketing Manager at Bluestem,
and when he took his current position in 2013, he encountered
some confusion in the business about how consumers were
interacting with the brands across channels. His first objective
was to try to understand the incremental contribution of each
channel to the results of any and all marketing campaigns.
The Bluestem culture is very data-centric, and a test-and-
learn mentality prevails in the company. This culture created
an ideal environment for Holthaus as a digital marketer
because data-driven attribution appeals directly to that
data-centric culture, and provides the holy grail of marketing
measurement efforts: a precise understanding of how the
company’s digital media is impacting incremental sales lift.
When Holthaus joined the Bluestem team, he noticed that
media decisions and budgeting was based on the last click
attribution model.
PRACTICAL ATTRIBUTION APPLICATION
Simultaneously, one of the CFO’s objectives was greater efficiency
in media spending, so the company had pursued figuring out the
ideal media weight as a top priority over the previous 18 months.
The last click attribution model made it difficult to determine the
ideal media weight with any precision.
Holthaus brought to Bluestem his experience using data-driven
attribution from a previous employer. He understood the impor-
tance of knowing the fractional attribution rate of the full media
stream, so he knew that to fully leverage its media spending Blue-
stem needed data-driven attribution to optimize the marketing
spend. Holthaus states:
“As a digital marketer, this was one of the most important
things for us to look at. It’s exciting as a marketer to understand
what’s driving the incremental impact. Without a data-
driven attribution model, Bluestem could not get to a level of
granularity of how media is working together in real time.”
Holthaus has several industry peers as acquaintances, many in
prominent retail organizations. When he asks them about attribu-
tion, he’s learned that many of these companies aren’t there yet and
are using last click/last touch models, if they’re doing anything at all.
The experience that Holthaus has with data-driven attribution
has helped him position Bluestem ahead of its peers in under-
standing how each element in the media stream is performing
and what is the ideal media weight.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 17
Data-driven attribution was not difficult to justify at Bluestem.
Holthaus explains:
“Our CFO is very involved in understanding the major
industry trends. When I arrived, he was already aware of
data-driven attribution and had inquired about it. Bluestem
is very focused on results and understanding data,
therefore, it was not a hard sell.”
Implementation is also going smoothly.
“The technology side isn’t that bad. I expected it to be
harder, but most of the work is pixel implementation or
tagging. Implementing tags across channels hasn’t been as
difficult as it might sound. The process has gone smoothly,
better than I expected.”
Because data-driven attribution is an emerging solution, Holthaus
expects most marketers to question the metrics and attribution
methodology, to have some skepticism. Holthaus concludes:
“I have seen the data-driven attribution methodology and
I believe in it. It is the right way to look at attribution. It
shouldn’t be too difficult for people to get it.”
SUCCESSFUL MARKETING LEADERSHIP
Successful Marketing Leadership
It wasn’t so long ago that the Chief Marketing Officer (CMO) was the
shortest tenured executive in the C-suite. The too short job span of a
new CMO was often about 18 months. A new CMO would replace a fired
one who failed to get results.
The new CMO would spend about six months at the front-end figuring
out what to do, often by intuition since there were no systems in place
to provide clear insights, another six months launching initiatives, and a
final six months looking at results. If the plan worked, the CMO remained
employed. If not, the revolving door to the CMO’s office would spin again.
A quantum shift is occurring for CMOs. They are taking more control of their
destiny by becoming more analytical. Data-driven attribution is playing a
key role in the renaissance of the CMO, providing a comprehensive media
performance platform that gives insights not previously available.
With these insights, CMOs are achieving measurable results that are
transforming the marketing team into a revenue-generating center.
21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 18
Data-driven attribution also has some serious competitive implications. In
really competitive markets with lots of digital media, companies not using
data-driven attribution will suffer at the hands of competitors who are.
Those competitors will have clarity of insight about where conversion
credit belongs. Those not using data-driven attribution will buy media
that doesn’t necessarily work, while their smarter competitors will buy
only what’s working.
This inevitably leads to a tipping point in any industry where the few
that are ahead of the adoption curve will accelerate their growth at the
expense of companies that aren’t using data-driven attribution.
Data-driven attribution is playing a key role in the renaissance
of the CMO, providing a comprehensive media performance
platform that gives insights not previously available.
SUCCESSFUL MARKETING LEADERSHIP 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 19

In light of the current pressure on marketing to generate revenue and

have accountability, these are the imperatives for today’s CMO:

Marketing Checklist
Get a holistic view. When media performance data does exist, it’s
often in silos. Getting a complete view of this data is the first step to
understanding media performance and optimizing it.
Define the metrics. Marketing must have a set of unified metrics to
evaluate its performance on a fully attributed, contributed value basis
– a true apples-to-apples comparison.
Think beyond digital. It’s easy to think of data-driven attribution as just
a digital marketing measurement solution. In the real world, campaigns
often blend offline media with digital to produce conversions. The
capabilities and benefits of data-driven attribution are not limited to
just digital media.
Invest to win. Use the insights gained from the implementation of
data-driven attribution to optimize channels in the media stream, as
well as tactical optimization within each channel.
Operationalize the results. Data-driven attribution will provide a
new view of marketing performance. This view should influence how
not just marketing, but also how the entire organization, functions.
Integrate the results into the budgeting and forecasting processes, as
well as the marketing technology stack.
Address the elephant in the room. Data-driven attribution can
help you know what to do about the mobile channel, the marketing
juggernaut about which many marketing organizations have their
heads buried in the sand. Organizations that don’t yet have a plan for
the mobile channel – and any other channel they don’t know what
to do with – can use attribution insights to develop a sound strategy.
Marketers in any size company are realizing that data-driven
attribution provides a powerful mechanism to understand
incremental sales lift from each channel, optimize the media
mix, and turn marketing into a true revenue-generating center.
ABOUT DEMAND METRIC 21ST CENTURY MARKETING MANIFESTO BEST PRACTICES GUIDE 20

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