Last week, I attended the Newspaper Association of America’s MXC conference in Denver. We were to focus on the publishers’ use of data. A hot topic that sometimes becomes overly broad and leads to unrealistic expectations. Here are some key points I made.   

For any digital publisher, relying on data is no longer an option nor a luxury. It has become a necessity. Each passing quarter confirms the demise of digital advertising: yields continues to fall, programmatic buying (most often operated by large third party players) takes over and continues to fuel deflation. Highly visible media brands — two years ago the Huffington Post, now BuzzFeed — deal with the issue by generating huge quantity of pages saturated with kittens and listicles, each yielding very low CPMs. At the other end of the spectrum, strong media houses develop customized, sophisticated campaigns for high-end brands (see examples on NYT’s IdeaLab page); they also fill their pages and apps with so-called Branded Content items — which very few publishers manage to implement correctly.

For news publishers, the use of data should focus on four goals:
— Increase advertising yields through smarter targeting
— Improve their editorial recommendation engines (hence raising the number of page views per visit)
— Up-sell ancillary products
— Raise the performance of their subscription system (if any.)

Over the recent years, the advertising community managed to find a new gun to shoot itself in the foot. It’s called targeted ads. Everyone has ugly anecdotes about those. Typically, the stories go like this: You do a web search for an item and quickly find it. In the following months you’re deluged by ads for the product you bought. The annoyance prompts many to opt for AdBlocking systems — I did (except for sites I’m in charge of), with no regret nor guilt.

To put it mildly, there is room for improvement, here.

Coming back to profiting from site users’ data, one good example I heard recently is a recent request made by a large airline to the Financial Times: “Find us people who travel on long haul flights and who log on FT.com more than four times per month and from locations scattered along our routes”, i.e. super-frequent flyers used to business or first class, etc. Thanks to IP location analysis yielding geospatial coordinates for each connection, the retrieval of such high-value clientele wasn’t overly complicated. The geolocation principle applies to other requests, such as finding residents of a specific city or suburb, in order to serve effective advertising.

When you think of profiling, use a passport analogy. Anyone who visit a site from a browser (it’s more complicated with mobile apps), is issued a passport in the form of an anonymous cookie, such as this one, injected in my computer by the New York Times:

nyt_cookie

As a digital subscriber, I have inherited no less than 113 cookies from the NYTimes, each one stored in my computer for a specific purpose. They come from every segment of my navigation (pages, sections, articles, blogs), each generates a “stamp” on the passport. The more stamps I get on my passport, the more NYTimes people knows about me. Over time, the process draws a finely defined profile.

The example I often use looks like this (my perspective is from a French business media company):

Based on her past navigation, the user ID:6547dgfc_9088 turned out to be:
– A woman in her 30’s
– Leaving in Toulouse [Thanks to the geolocation of her internet box] She works :
…in the aerospace industry
… most likely in a financial department
… with a special interest in European regulations
… at a fairly high position.
Then we should be able to serve her with:
– Local ads / adjusted for her income and likely tastes [she also visits our lifestyle sections & other online properties in our network] – Adjusted editorial recommendations [related stories] based on her sector and position
– A special deal for our next conference on corporate finance
– A notification when someone in our team or among our partners publishes a book (paper or digital) relevant to her interest
– An abstract of our annual in-depth survey on aerospace
– A sneak-peak at our partner’s COOC (Corporate Open Online Course) featuring four hours of talk by a prominent tax lawyer from Brussels [don't forget the Red Bull] – [And if she's not a subscriber] A promotional, customized, one-time newsletter featuring the economics of commercial airplanes, with past stories from our newsroom, curated links, etc., all of the above driving to the inevitable conclusion: this discerning individual should definitely take advantage of our one-time offer.    

This “internal” profiling can be spectacularly enhanced by working with a major profiling third party. As an example, the large European player Weborama has accumulated a staggering 70 million profiles for an internet population of 52 million French users (each person can be linked to multiple profiles.) All over Europe, Weborama has collected 210 million profiles, roughly 40% of Europeans web users. In our example, by tapping into such large databases, the profile of this upwardly moving female exec from Toulouse will be enhanced up to the minutest detail of her tastes and preferences.

For the media company, reaching such productive interplay between a profiled individual and its ability to serve her with relevant content, services and products requires a well-integrated system — and a critical mass of products.

Understanding someone’s social and semantical genome through internal an external profiling is only a part of the equation. Matching the customer’s profile to the company output (journalism, conferences, publications, surveys…) also demands that the genome of those products be precisely established. If we want to “talk” to the customer’s profile, a story must have its set of tags, keywords and metadata; so does the theme of an upcoming conference that must go beyond a basic presentation, or the description a book. Ideally, every single piece of what the news organization produces must have its semantic genome encoded in a standardized way.

In defining user profiles, media organizations must have a rich and diverse line-up of contents, services and ancillary products. The broader the spectrum of a media brand, the better. All things being equal in terms of editorial quality, an isolated media will be less well armed than a larger company that operates multiple properties ranging from editorial to e-commerce and uses those to construct a wide range of user profiles.

Much more than in print media, isolation is not an attractive option in the digital world.

frederic.filloux@mondaynote.com