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Tools for Digital Performance
Marketing in the OTT Age
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To succeed in today’s dynamic online landscape, M&E marketers need to build a
direct connection to their consumers by utilizing data-driven direct response skills.
2 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
INTRODUCTION
For media and entertainment marketers, both the game and the rules have changed.
We’re in the midst of a digital media revolution that has put some established M&E
companies at a competitive disadvantage. Why? We’ve entered a new world of direct-
to-consumer delivery of digital content that is changing the way M&E marketers think,
work, and strategize.
To compete, M&E marketers must begin to think about their efforts in the performance
marketing space more like a marathon, rather than a sprint.
Whether consumers are cutting the cord in favor of over-the-top (OTT) players or
supplanting viewing on digital devices, the relationships between customers and M&E
companies are now a more direct relationship than ever. The ability to leverage and
hone new technologies for developing these new relationships with consumers involves
both art and science—and requires the development of skills pioneered by OTT. This is
what traditional M&E companies must now learn.
M&E marketers must rethink the best way to develop, track, and engage with a
demanding audience. They need to:
• Consider new market strategies to kindle consumer interest in M&E content
• Retune data and back-end infrastructure systems to better track and analyze
audience viewing tendencies
• Understand all elements of a disciplined performance marketing campaign
• Develop a market strategy that builds a relationship with consumers
• Effectively use feedback and response data to improve customer acquisition and
retention
There’s no doubt this is a massive transformation. Many M&E companies and their
marketing teams may not yet have thought through the complexity of these new
requirements. Let’s further explore what’s needed.
CBS’s airing of the sci-fi series “Star Trek:
Discovery” via both over-the-air and VOD
distribution is one example of how a network
might use unique distribution models to
reach new audiences intrigued by legacy
programming. (Photo: CBS)
The online landscape has created a new dynamic, allowing for direct
customer relationships in industries where the relationship had formerly been
disintermediated. This is happening in a broad set of industries including CPG,
automotive, and insurance. One of the more interesting industries that is being
affected by this is the media and entertainment industry. To succeed in this new
world, M&E marketers need to build a direct connection to their consumers and
leverage advanced data analytics and digital marketing techniques to better market
to those customers and prospects. In other words, M&E marketers need to add
data-driven direct response skills to their marketing tool set.
THE CHALLENGE: KEEPING UP WITH STAR TREK
Online distribution is changing the M&E business. Look at Star Trek, for example.
This science fiction series is one of the great media franchises of all time, inspiring a
legendary following and resulting in countless movie and TV spinoffs. This year, CBS
announced plans to revive the series with Star Trek: Discovery, a program that will
premiere on CBS television. But the remainder of the series will stream exclusively on
the network’s subscription video-on-demand (VOD) service, All Access.
This is a prime example of a hybrid launch geared to reach the VOD audience directly.
There’s certainly a precedent for this trend. By 2018, million US Internet users
will access the Internet via connected TV devices, according to estimates by the
marketing research firm eMarketer. Connected TV devices are defined as connected
TVs, including web-enabled TV sets, streaming devices like Roku and Apple TV,
gaming consoles, and even so-called dumb TVs connected to the Internet by laptops.
Up to percent of the US population will be accessing the web through such
means by 2018, the firm says.
To reach and engage with this new digital audience, native digital tools and content
will be needed. It’s not as much a matter of translating linear TV models online as it is
a matter of developing digital content and marketing strategies specifically targeted to
online audiences.
CBS obviously sees the potential of using the Star Trek brand to reach new digital
consumers. Smart cross-platform product strategy via VOD is a way to tap into a new
demographic. In fact, CBS CEO Les Moonves publicly referenced the Netflix model
for launching the series when speaking about Star Trek: Discovery.
“There are millions and millions of Trekkies out there,” Moonves told an audience at
the Morgan Stanley Technology, Media & Telecom Conference in February, according
to Deadline Hollywood. “We know for a fact that the other versions of Star Trek—
there were seven other series, some of them were great and some of them were
terrible—they all did really well on Netflix. That gave us great confidence that this was
the right choice to put the full court press on All Access.”1
There are other recent examples of the ways in which native digital products can be
used to tap into new audiences. The launch of Pokémon GO was the surprise hit
of 2016, generating global hype and millions of new customers. The packaging of
Pokémon GO as an augmented reality game drove 85 million installs within the first
five months—a move that generated not only digital revenue, but also huge brand
awareness and free advertising through the hundreds of stories that were written
about the phenomenon.
3 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
Smart packaging of
Pokemon GO drove
85 million installs
within five months.
(Photo: South China Morning Post)
1. “Star Trek: Discovery to Launch by Early Fall on CBS All Access, Les Moonves Says,” Deadline Hollywood, February 27, 2017.
launch-cbs-all-access-early-fall-les-moonves-1202016648/
4 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
Yet another example is the new digital venture from talk show host and comedian Ellen
DeGeneres, who recently launched Ellentube, a site and app that will host exclusive video
from her daytime
It’s clear that more devices, more distribution channels, and more demand for digital
services present huge opportunities for growth. The chart above from the advisory
services organization EY, a division of Ernst & Young Global Ltd., shows that the next
generation of digital consumer expects these kinds of services, and demand for more
choice will accelerate further digital media adoption.
A CASE STUDY: HOW BLOOMBERG BUILT AN ONLINE TV EMPIRE
Even traditional media companies are experimenting with new online sources, including
the provision of specialized online video content. Bloomberg, one of the most successful
global business media brands, started building an online video presence as early as 2011.
Bloomberg has since seen immense growth in its online ventures. The tech news and
research site VentureBeat detailed some of the benefits of this move, including a 20
percent increase in viewership in
Bloomberg’s success in establishing high audience engagement resulted from its
investment in technologies that ensure customers enjoy a high-quality experience,
including clear video. The company also used data analysis to identify popular video
Bloomberg developed
a special group to
promote OTT ad sales
and partnerships after
research found that
more than one million
people were streaming
video content from its
OTT offerings.
A chart from the advisory services organization EY, a division of Ernst & Young Global Ltd., shows how the next generation of digital consumer expects these kinds
of services, and demand for more choice will accelerate further digital media adoption.
2. Ellen DeGeneres Launches ‘Ellentube’ Video Site, Expanding Beyond YouTube,
beyond-youtube-1201343180/
3. “Bloomberg Explains its Strategy for Success in Online TV,”
5 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
segments and integrate them with related articles on Bloomberg’s website. According to
the company, 45 percent of the people navigating to the website end up staying to watch
online video content.
Bloomberg also found that more than one million people were streaming video content
from its OTT offerings. The company has subsequently developed a special group to
promote OTT ad sales and partnerships.
Bloomberg provides specialized business content that may enable the company to see
further growth in online video and OTT offerings. But some of Bloomberg’s discoveries, such
as focusing on video content and contextual placement, provide lessons for other digital
media companies as well. On the business side, the focus on video results and optimization
of advertising data resulted in increased ad sales. More advanced audience measurement
tools gave Bloomberg’s advertising sales force the ability to describe the audience in detail
to advertisers, driving revenue, according to an article in
So, what are the steps to building a native digital performance marketing strategy? The
new direct-to-consumer model demands a specific strategy and approach for cultivating
the new digital demographics.
Below are the steps that performance marketers need to consider when building a
performance marketing strategy.
1. GET TO KNOW YOUR CUSTOMER
With the explosion of these new devices and distribution channels, one might ask what
key differentiators will be used to define success. The first criteria is obviously the quality
of the content. But the second—how a company uses technology to launch, analyze,
track, and nurture the audience—is delivered through a specific performance marketing
strategy.
As this native digital audience grows, M&E companies will need new strategies to grow,
measure, and optimize the customer experience, and that starts with getting to know your
customer.
In the world of legacy media, data was gathered primarily via viewing panels and surveys.
In the digital world, though, companies can avail themselves of a wider range of methods
for viewing and collecting data—much of it real-time data—and for building relationships
with audiences. This is becoming increasingly important as digital direct-to-consumer
offerings have disintermediated traditional broadcasters and media producers.
When beginning to formulate your performance marketing strategy, ask yourself if you
know how and why your customer is engaging with your content. If not, a data and
measurement strategy will be vital to providing those answers.
2. GET DIRECT ACCESS TO YOUR CUSTOMER
Content owners and producers must also understand how to build direct-to-consumer
relationships without relying on distribution partners.
It’s not so much a
matter of translating
linear TV models
online. It’s about
developing digital
content and marketing
strategies specifically
targeted to online
audiences.
To better connect customers with popular
programming like Game of Thrones, HBO
decided to create its own digital access
app that would solidify and sharpen
the programmer’s direct-to-consumer
relationship. (Photo: HBO)
4. “Bloomberg Explains its Strategy for Success in Online TV,”
6 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
“If you don’t own your customer and your customer experience, it can be really bad
because other people can set up toll booths between you and your customer,” says
Andy Fisher, chief analytics officer with Merkle, a performance marketing agency.
Fisher points out that HBO had this exact revelation. HBO began as a creator of high-
value content that was distributed as a premium cable channel. The company then
made this content available online using HBO GO. But HBO realized that it needed to
create a direct-to-consumer experience, and so it launched HBO NOW, its own digital
access app, so that it could own the direct-to-consumer relationship.
“These content companies now have the opportunity to market directly to consumers,”
says Fisher. “It’s a complete culture change to have these direct customer
relationships.”
In 2016, HBO began the process of managing its digital media buying for HBO NOW in
addition to managing performance- and audience-based buying for media that promoted
tune-in for HBO original programming.
The company began applying an audience-based approach to help identify the most
likely high-value prospects, says Diana Pessin, vice president of user acquisition and
programmatic buying at HBO. The goal was simple: to actively control the quality of the
customers HBO acquires.
The company also began to look at the overlays in audiences—between those most
highly engaged in tune-in advertising and viewership data—to help identify opportunities
for HBO NOW.
“[This approach] has really helped us evolve our audience-based buying practice,”
Pessin says. “Data and audience profiling and analysis are now at the center of our
planning process and frame how we approach every media campaign from the very first
discussion. We have become more efficient with our media spend and have seen the
lifetime value of our HBO NOW subscribers continue to grow over time.”
For classic content companies, this is a whole new ballgame. Entertainment companies
must begin to change how they think about marketing and about how performance
marketing strategies can build relationships with audiences so that they mature into
long-term viewers.
3. DIVE INTO THE DATA
Another key step in developing the right performance marketing strategy involves
gathering good data. This data should come from an audit of potential sources of
information that might include:
• Email databases
• CRM systems
• Ad networks
• Set-top-box (STB) data
• Panel or survey data
• Third-party data integration services
The goal is to
help companies
succeed not only as
world-class brand
marketers, but also to
become world-class
direct-to-consumer
marketing companies.
7 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
These disparate sources of data should be blended in a sophisticated and scientifically
sound way. For example, data from a single source, such as STB data, may be limited
and so may not give the complete picture. It may be necessary, therefore, to aggregate
more data sources to create a statistically valid sample. TV networks can consider
engaging the services of a data aggregator to collect, aggregate, and project that data
across a wider population.
In fact, one of the advantages of online video is that even more granular data
can be collected. In the past, for example, TV data was primarily correlated to a
household and not to an individual. But with online video, many different individuals
may be watching many different online video products. Advanced analytics tools
can combine and analyze data to give content producers a comprehensive view of
audience behavior—for individuals as well as for households. The enabling of people-
based marketing will play a vital role in creating competitive advantage for media and
entertainment companies.
In all cases, accurate measurement requires a sophisticated platform with integrated
STB data, coupled with identity management that is compliant with privacy policies.
Networks should work with third-party providers to connect STB data with device ID
graphs without revealing the identities of users.
4. PURSUE THE LONG TAIL
Consumers have many options for accessing and viewing content. This long tail offers
opportunities for marketing because concentrated areas of like-minded viewers might
be located in specific content channels. This also means that it may cost more to
reach smaller groups of people on a one-to-one basis. Performance marketing is
about reaching individuals in a targeted way. It may cost more to make this targeted
connection on an impression basis, but once you make this connection, there is
Apr 12 Apr 18 Apr 26 May 03 May 10 May 17 May 24 May 31 Jun 07 Jun 14 Jun 21
This graph, published by , shows the social activity for Game of Thrones after specific episodes were released. Smart social media
techniques can be used to take advantage of this additional engagement.
MONITORING GAME OF THRONES
“Data and audience
profiling and analysis
are now at the center
of our planning
process and frame
how we approach
every media campaign
from the very first
discussion.”
Diana Pessin, vice president of
user acquisition and programmatic
buying, HBO
8 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
higher consumer engagement, because you’ve reached an interested audience, which
leads to a better return on investment (ROI). By aggregating and analyzing data from
many sources, it’s possible to find media channels where there is likely to be a high
response rate on campaigns, resulting in higher viewership.
5. OPTIMIZE CAMPAIGNS USING SCORING SYSTEMS
A common refrain of data scientists is “things must be measured to be improved.”
Any campaign can be measured and analyzed to provide insight into how it can be
optimized. Smart marketers, therefore, have developed media measurement systems
such as a gross rating point (GRP) for tune-in campaigns. However, GRPs can be
quite broad and may lack granular data on specific audiences.
Another approach is to measure the economic value of a campaign, such as the dollar
increase resulting from an increase in viewership. Some firms use ROI to calculate a
cost for converted viewers. Data scientists can use this data to find trends, including
identifying good tune-in campaign initiatives that will produce an uptick in viewership
as well as tying campaign viewership data to actual results.
6. LEVERAGE NEW CHANNELS SUCH AS SOCIAL MEDIA
Netflix uses social media promotion to develop its audience and drive tune-in
to specific content. The graph on the previous page, published in an article on
5, shows the social activity for Game of Thrones after specific
episodes were released.
Techniques can be used on social media to take advantage of this exclusive
engagement. Posting additional content, such as behind-the-scenes footage and
announcements, can drive engagement and amplify viewership. In addition, data can
also be gathered from social media services to find out more about the audience and
the topics of their conversations.
CONCLUSION: DATA, ANALYTICS, AND OPTIMIZATION PRODUCE RESULTS
With the explosion of content and competition in the digital media world, smart
marketing campaigns are more critical than ever to success. M&E companies need to
focus on new data management, analytics, and optimization tools to develop and grow
their audiences and win the battle for eyeballs.
By building and connecting the right back-end data infrastructure and analytics tools,
a digital media company can build a deep understanding of its audience and potential
viewers through:
• Demographics of the viewers
• Geographies of the viewers
• Viewing patterns, including time spent viewing and method of accessing content
• Social media activity and topics of interest
• Correlations with content, yielding recommendations or connections to more content
“We help companies take
that path, from being
a world-class brand
marketer to becoming
a world-class direct-to-
consumer marketer. That
is the journey the TV
companies are on.”
Andy Fisher, chief analytics officer,
Merkle
5. “Streaming Social: What Marketers Can Learn from Netflix’s Social Strategy,”
9 TOOLS FOR DIGITAL PERFORMANCE MARKETING
IN THE OTT AGE
Using the variety of tools outlined above, it’s possible to use data science and
research to gain a more complete picture of the market and create a framework to
improve performance.
Every campaign needs to be planned, measured, analyzed, and optimized—
including traditional media campaigns such as linear TV advertising. It is imperative
that M&E companies start measuring both linear and digital campaigns through the
same lens with the same metrics. This is the only way that advertising will keep
up with the ever-changing environment of content consumption, and it is why data
consolidation and normalization within the performance marketing process are the
keys to developing your strategy and to executing your vision.
Marketing programs need accountability. Big data and technology help media
marketers better understand and target their audiences.
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property of their respective companies. All rights reserved.
ABOUT THE AUTHOR
R. Scott Raynovich
is the founder and
principal of Futuriom
(), a
media and analysis firm
that identifies trends in
emerging technology.
He has been a
technology and media
analyst for more than
15 years.
Merkle is a data-driven, technology-enabled, global performance marketing
agency that delivers unique, personalized customer experiences across
platforms and devices for media and entertainment companies. The agency’s
heritage in data, technology, and analytics forms the foundation for its skills
in understanding consumer insights that drive direct-response strategies.
Performance marketing integrates a wide range of online technology tools,
including audience analytics, social network data, customer relationship man-
agement (CRM) databases, and digital advertising, to create a personalized
experience with the customer. This leads to deeper engagement. Building
this type of engagement requires technology integration and data analytics
to tap into insights about a consumer’s experience across different channels,
platforms, and devices.
Merkle helps media and entertainment marketers own and grow their audience
relationships through:
• Integrating online and offline data to influence advertising sales
• Establishing an online ecosystem involving search, display, mobile, and
social interactions to increase tune-in
• Developing and executing multichannel campaigns
• Implementing technology solutions that connect online and offline customer data
and insight modules
• Addressing customers at a scalable level through analytics and
segmentation
Learn more about how Merkle is helping the world’s leading media and
entertainment companies at .
A Closer Look at Merkle
