Category: Marketing

Moreover

In the 1980s, I remember readings magazines and seeing ads which had a number at the bottom of the page. There was a postcard in the magazine where one could circle the numbers of the ads for which one wanted more information and send it to the publisher.  This was an early form of “response” ads. Print and TV ads then had toll-free numbers one could call to show interest. Then came the Internet with keyword search ads and other innovations. The world of email stayed largely untouched through all these upgrades in the world of advertising.

Atomic Rewards and AMP can be gamechangers. Atomic Rewards can enable a magnitude increase in email opens, while AMP can bring in interactivity. Together, the 4 As of E3 and the 4 Ps of E3 Ads can open new vistas for advertisers and list owners.

But there are challenges. The E3 ad formats we have discussed do not lend themselves to integration into existing ad exchanges which are all made for banner ads and a URL. E3 Ads will necessitate the creation of a new matching engine – think of it as an “Email Media Network” – which can connect list owners (brands / publishers) to advertisers (with PII targeting). The more the focus on content-focused ads and relationship building via the use of microns, the greater is likely to be the impact.

In fact, think of the following scenario:

• An advertiser pays 1 unit (say 10 cents or Rs 10) for an email opt-in
• Over the next 7 days, the advertiser pays an equivalent amount each day the subsequent emails (now sent from the advertiser’s domain) are acted on
• If all 7 emails see engagement, the payment for the ad goes up to 8 units (80 cents or Rs 80).

The medium makes it own formats. Email is one of the most important channels on the Internet for brands to engage with their customers. It can now also become an equally important platform for brands to acquire new customers and reactivate dormant customers. The prize is the $250 billion AdWaste on account of wrong acquisition and reacquisition. E3 Ads can do away with both leading to much better ROAS.

With E3 Ads, the business model of email can also be transformed – from “some CPM” to “Zero CPM”. E3 has the potential of being the single channel to address all use cases: acquisition, engagement/retention, and reacquisition. It can do it far more efficiently than current methods. Success with E3 is what can help brands in their Profipoly quest. It can also give the email channel a much-needed makeover for the newer generation of customers.

Examples

I just browsed a book on an online store but did not buy. Instead of showing me an ad for the book (which will now become almost impossible with the third-party cookie deprecation), imagine an ad which I see in the footer of a brand email saying “Sign-up to receive 7 days of excerpts about the book”. A single tap (which is an opt-in) and I am done. For the next week (or until I buy in the interim), I receive a daily E3 email with an excerpt and a magic cart to allow me to buy in the email itself.

When I see an ad which says, “Tap to receive 7 days of summer fashion tips”, the probability of me wanting to subscribe is much higher than simply seeing an ad with a logo and an invitation to click to a product or category page.

We can run through more such examples. The underlying theme is to leverage the E3 format for a new class of ads:

• An invitation to subscribe to content
• Content sent as a “micron” (micro newsletter) for a week – same time each day
• Each micron can have a form in the footer to gather zero party data (with Mu as incentive)
• This provides multiple opportunities to see (imprint the brand logo on the consumer’s mind) and sell
• All of this is done in email – think of it as inbox commerce / in-channel conversion

For the advertiser, this is like showing a pop-up on a website for new visitors inviting them to give their email ID in return for a discount on their first purchase. In the case of E3 Ads, the email ID collection is very simple: a tap to subscribe since the email ID is already known. (This is similar to how Meta runs ads enabling a click-to-WhatsApp action.) What is also new is the focus on content as an attractor – a soft-sell. In the effort to do a hard sell, brands end up with wrong acquisitions: a display ad is clicked but the consumer goes away without leaving any identifying information.

Email subscription ads are just one example. In situ form fills can also remove the friction for lead generation ads requiring a clickthrough to a landing page. The PII info can also help with targeted ads for reactivation and remarketing. A search box with a magic cart is yet another example where the ad actions can be completed inside the email. The key is to think how the unique features of E3 can be used to improve the ads and give them a content feel, making them more relevant for the email recipient.

I had discussed more examples in Part 5 of Reimagining Email Ads.

4 Ps

PII, Push, in-Place, and Payments are the 4 Ps which are at the heart of the E3 Ads.

PII: Personally Identifiable Information refers to any information that can be used on its own or with other information to identify, contact, or locate a single person, or to identify an individual in context. Examples of direct identifiers include names, passport numbers, mobile numbers, and email addresses. Indirect identifiers may require more data to identify an individual. Examples include date of birth, place of birth, cookies, IP addresses, and mobile device IDs. In the E3 context, the email address to whom the Action Ad is directed is known. The ad is being shown on a brand’s owned channel where the recipient has an opt-in. PII info can be highly valuable given that the adtech industry is moving in the opposite direction of hiding PII info when it comes to ads.

Push: Almost all digital ads we see today are shown on “pull” channels – where users have to do an explicit action (do a search, request a web page, open an app) before an ad can be served. Email is part of a category of push channels where the brand initiates the messaging. What recipients need to do is to engage with the message for the ad to be viewed.

in-Place: Another differentiating factor with E3 Ads is that every action can be done in the email itself. For a brand, this is extremely important because the recipient is not leaving the email (and therefore unlikely to return in the same session). The response mechanism is tied to the ad and part of the Ad AMPlet. Be it a form, an email subscription acceptance, or an “Add to Cart – all of it can be actioned in the email itself. This is a novelty – almost every ad on the Internet that we see today involves a clickthrough to the advertiser’s website. While this can be done with email ads also, the aim is to imagine a new format – a “blue ocean” which is an uncontested marketspace.

Payments: In-place, one-click/tap payments can be a gamechanger – the way Amazon has done for shopping. If a recipient has a wallet (and therefore a cash balance) with either the advertiser, publisher, or ESP, small payments can be made in an instant. The PII (email address) is already known, and therefore so is the shipping address in the case of a physical product. This enables frictionless purchase, which can power a whole new category of ads.

The thinking behind E3 Ads is to create new formats and experiences which delight consumers. The best ads are those where the readers/viewers don’t think of them as ads but as content that is of value to them. This is what we will discuss next.

E3

The key to opening up the world of emails to ads which are relevant for consumers is E3, a new kind of email which subsumes the brand content (which in reality is an “ad”) with a gamified, incentivise-laden content wrapper. 4 As define E3:

• Atomic Rewards: Mu in the email subject signals that this is an email that is different from the other emails with the content serving as an attractor for the recipient. A Mu catalog in the footer also helps drive the earn-burn flywheel for the micro-incentives.
• AMPlets: These are the AI-powered magnets which ensure that consumers will want to open every E3 email they receive. Be it a news AMPlet, a quizlet, or a gamelet, they will receive in the email footer “made-for-me” surprises. For example, a student could receive dynamic flash cards (in the form of quizzes) for their forthcoming exams. A variety of puzzles could keep the mind engaged and fill life’s empty moments.
• Action Ads: These response-driven ads are the monetisation engine which can enable “zero CPM” (free) brand emails.
• AM: E3 emails are sent daily at the same time to enable habit formation.

Here is a futuristic view from an E3 world: “Reflecting on his E3 inbox, Arun is genuinely impressed by how transformative the experience has been. What was once a routine task of sifting through emails has now become a highlight of his day, filled with anticipation and excitement. The seamless integration of learning, play, and brand interaction has not only enriched his daily routine but also reshaped his perception of email as a medium. He appreciates the clever use of µ to signify value beyond conventional marketing, fostering a sense of reward and engagement. The E3 model, with its dynamic AMPlets in the footer and interactive ads, has effectively blurred the lines between entertainment, education, and commerce, making Arun look forward to each new discovery that awaits in his inbox. This reinvention of the email ecosystem has not only captivated Arun’s attention but also elevated his expectations of digital communication, setting a new standard for how brands connect with their audience. The spam still makes its way into the inbox but for him the µ signal is the key; those are the emails he doesn’t ever want to ignore.”

The key to unlocking this future is to ensure that “Action Ads” generate response for the advertiser, relevance for the publisher (email list owner), rewards for the consumer, and revenues for the ESP. Let’s see how the 4 Ps of E3 Ads bring “good things to life” (to borrow a line from a GE Ad in the 1980s and 1990s).

Recent Writings

Here are excerpts from three recent essays which are relevant as we think about how to rethink ads in emails.

Solving the Email Open Problem: “Think of the fun page in a newspaper. Even now, many newspapers have a page of puzzles, astro quotes, comics, and more. It is to create a habit that makes people pick up the paper and open it. As they do so, they see the ads. Email marketers need to think similarly. A “game” magnet is needed in the email subject and a “fun” magnet is needed in the email footer to drive engagement… What the footer does is create something I find “useful” – always. For these few seconds that I engage, I get something interesting. Or it just serves as an attractive distraction in the busyness of daily life. Different strokes for different people. The key objective remains the same: no email unopened.”

I discussed “Action Ads”: “Brands can also have ads in the email footer. They can be ads promoting internal products or external non-competing brands. There are four attributes that set these ads apart: they are linked to PII (personally identifiable information) so they can very targeted, they are in “push” messages and thus don’t want for user action, all actions are in-place (and not requiring a clickthrough to a landing page), and they can support payments which means the ads could drive impulse purchases.” Think of these as the 4 Ps – PII, Push, in-Place, and Payments.

Emagining E3 Ecosystem: Every Email Engaged: “E2 is about how to make the email body more engaging with forms, carousels, accordions, and shopping carts. E2 is about eliminating the clickthrough to a landing page. E3 is a bigger idea, solving the problem of attention recession and converting AdWaste to brand profits. E2 is for a single brand to adopt; E3 is about transforming the business model of email. E2 and E3 complement each other perfectly…[E3] is the universal solution to ensuring every email is opened and engaged, thus taking email open rates from 10% to 100%. This is because the E3 packaging is made for the recipient, the person behind the email address. In doing so, E3 also creates a digital media network for monetisation of attention – just like Google and Meta have done. E3 providers can subsidise the cost of sending the email and in fact share ad revenue with brands (list owners), thus turning the traditional cost structure on its head and fostering a new era of monetised engagement, creating a new revenue stream for email senders (brands) and email service providers (ESPs).”

FAB: A New Model for Enterprise Software: “FAB [is] a model which challenges the traditional B2B enterprise software paradigm: Free, from paid, Alternative business models, which help with monetisation for the software vendor, and Better, meaning that the free product offering is superior to the paid solution… E3 enables monetisation by allowing brands to include interactive ad formats within emails, facilitating in-email actions like form submissions or payments… [It] introduces an alternative business model for email marketing via an “email media network” that generates revenue through embedded interactive ads (built around 4P: PII, push, in-Place, Payments), and thus democratises access to quality email marketing for brands of all sizes.

I added: “E3 is a win-win for consumers who find something useful in every email and for brands who can now build hotlines with their existing customers and thus reduce their dependence on adtech for customer acquisition and reacquisition. It is an excellent example of the FAB approach in action, particularly in the B2B space, where such innovative models are less common. By offering a free, engaging, and superior user experience, E3 challenges traditional email marketing paradigms and introduces a new way for businesses to connect with their customers. The alternative monetisation strategies within E3 not only benefit ESPs and marketers by creating new revenue opportunities but also enhance the user experience by making emails something to look forward to, rather than just another message (or more correctly, an ad) in the inbox.”

We now have the foundational thinking to do some new thinking about ads in emails.

The Combo

Both email and digital ads have been around for over 25 years, and yet ads in emails have not taken off except for publisher newsletters. Of course, one could argue (as I have) that most brand emails are ads! But that aside, given that ads are conquering almost every corner of our lives, it is a surprise that ads and emails haven’t been mixed and matched. By my estimate, about 2 trillion business-to-consumer emails are sent each month. Digital advertising is the most important business model of the Internet, generating $500 billion annually. So, can the twain meet? Can ads in emails open new opportunities for advertisers, brands, and consumers? My short answer: Yes, the time has come.

There are five reasons why change is coming. First, AMP in email can change the format of ads. Instead of clicking through on a display banner to a landing page, ads can become interactive, and the engagement can happen without shifting attention to a new context. Second, with 2024 being the year of the third-party cookie deprecation, advertisers will want better targeting. What better place than an email footer where the PII (email ID) is known? Third, a solution to the email open problem has the potential to dramatically increase open rates and therefore attention. Fourth, with brands facing pressure on profitability, there will be interest in new revenue streams. Finally, new ad formats can create exciting opportunities for advertisers beyond what’s possible with the traditional digital ads we have become so used to.

Email ads are a topic I have discussed in the past. In Reimagining Email Ads, I wrote: “There are three innovations in email which can enable a big leap in email advertising – AMP, Atomic Rewards and the Email Footer. AMP, a technology introduced by Google, is about making emails dynamic and interactive. It enables the creation of mini-websites and apps within the email itself, thus reducing the need for clickthroughs and landing pages. Atomic Rewards brings in micro-incentives to nudge actions… While AMP and Atomic Rewards (in the form of Mu, a pan-brand token for attention and data) can be used within the email body, the footer is where the possibilities can be widened… For brands and consumers, Email 2.0 ads can be the next leap beyond programmatic. With billions of daily emails already being sent, the traffic and attention is there. What is needed is innovative thinking to reimagine the power of email ads. There are five possible use cases: Search, Sale, Say Yes, Survey and Second Life… f we estimate that each ad could generate at least $1-10 in revenue, the opportunity for email ads could be about $25 billion annually – 3 times the size of the email service provider market. In fact, ESPs could let brands send emails for free in return for a cut of the ad revenue generated!”

In a subsequent essay Can B2C Email Become Free?, I asked and answered many questions about email: “What would it take to offer businesses a million free emails monthly (100,000 contacts x 10 emails a month)? How disruptive could that be? And what if the emails sent could be made more engaging – more opens, more in-mail actions, more engagement? Would such a free service work? Or would it be too good to be true?! What else could be added to make it a compelling switching proposition? From a service provider’s view, what would it take to offer such a free service – and do so profitably? Could it be scaled to every business irrespective of email volumes and database size?”

A combination of free B2C emails where ESPs (email service providers) monetise via ads can create win-win opportunities and connect consumers, marketers, and advertisers. It will require a fourth entity – a forward thinking email service provider – to make it happen. In this essay, I will put forth some ideas on how it can be done.

The theme is: “Bold Moves, Rich Rewards:A Playbook for Profitability.”

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Summary and Critique

ChatGPT

Summary: The text delves into the challenges and pathways for Chief Marketing Officers (CMOs) aspiring to become Chief Executive Officers (CEOs). It highlights the rarity of such transitions, underscoring the need for CMOs to broaden their skill sets beyond traditional marketing domains, including strategic decision-making and financial management. The narrative presents a structured plan for CMOs to demonstrate their capability to lead as CEOs, emphasizing entrepreneurial mindset, cross-functional leadership, and the ability to envision and adapt to future market disruptions.

Critique: The discussion presents valuable insights into the professional journey from CMO to CEO, yet it predominantly relies on anecdotal evidence and hypothetical scenarios, which may not capture the full spectrum of challenges or opportunities in this career transition. The emphasis on a singular pathway overlooks the diverse backgrounds from which successful CEOs can emerge and the varied nature of organizations and industries that might influence the feasibility of such a transition. Furthermore, the narrative could benefit from a more nuanced exploration of the role of organizational culture, mentorship, and external market factors in shaping the career trajectories of CMOs. Additionally, the portrayal of marketing functions might inadvertently reinforce stereotypes about the limitations of marketing professionals, potentially overlooking the strategic depth and impact that seasoned CMOs can bring to their organizations. A more balanced view would acknowledge the intrinsic value of marketing leadership and its potential to contribute to broader business strategies and success.

Claude

Summary

The document explores the reasons why Chief Marketing Officers (CMOs) rarely ascend to the role of Chief Executive Officer (CEO) and provides advice on how CMOs can position themselves for the top leadership position. It begins by narrating a fictional story about a CMO named Maya who successfully became the CEO of a company called A1Books. The document then delves into the common challenges and perceptions that hinder CMOs from becoming CEOs, such as a lack of broader operational expertise, limited financial acumen, and the perception of marketing as a cost center rather than a revenue generator.

The document aggregates advice from various sources, including executive search firms, industry experts, and thought leaders, on how CMOs can overcome these barriers. The recommendations include broadening expertise beyond marketing, developing financial acumen, building cross-functional leadership, cultivating industry respect and thought leadership, fostering strategic alignment and a commercial mindset, seeking mentorship and networking opportunities, and embracing a growth mindset and customer-centric approach.

The document then presents a structured 4-year, 7-point action plan for CMOs aspiring to become CEOs. The first three points focus on excelling in the CMO role, such as becoming a “Chief Profits Officer,” creating a “Profits Flywheel,” and pioneering market innovations. The next three points involve leading a mini-business P&L to cultivate an entrepreneurial mindset, expand expertise across various business functions, and build ecosystem connections. The final point emphasizes preparing for the future by envisioning opportunities and disruptions.

The document also includes a letter from the fictional character Maya, offering additional advice on writing, teaching, reading widely, maintaining health, and achieving work-life harmony.

Critique:

The document provides a comprehensive and well-researched exploration of the challenges CMOs face in becoming CEOs and offers practical advice from various reputable sources. However, it could benefit from a more concise and focused structure, as some sections feel repetitive or tangential.

Additionally, while the fictional narrative of Maya adds a storytelling element, it might be more effective to integrate real-life examples of CMOs who have successfully transitioned to CEO roles. This would provide more tangible and relatable insights into the strategies and mindsets that enabled their ascent.

The advice and action plan presented are sound and actionable, but the document could benefit from a deeper dive into specific tactics and case studies to illustrate how CMOs can effectively implement these recommendations within their organizations.

Finally, while the letter from Maya offers valuable advice on personal growth and development, it feels somewhat disconnected from the main theme of the document. Integrating these insights more cohesively into the overall narrative and advice could strengthen the document’s overall impact.

A Letter from Maya

Here is a letter Maya has written to those wanting to emulate her ascent.

Dear CMO-and-Aspiring-CEO,

By now, you would be familiar with my story and the 4-year, 7-point plan. In this letter, I want to share a few additional things which can help you as you craft your journey to the top. (They are inspired by these Life System notes.

Write Long Form: I cannot emphasise this enough. Writing provides a clarity that no amount of short, witty tweets or pithy LinkedIn posts can ever do. Write for yourself – without worrying about who will link, like, or repost. Since times immemorial, writing has provided the best way to learn and synthesise. It is like giving people a window into your mind. As you write, you enter a different zone, a flow – where your thoughts and subconscious coalesce together to create a magical river of ideas.

Teach Others: This works at three levels. First, it enables your N-1 and N-2 colleagues to get a peek into how you think. Second, the stories and wisdom enables them to fast-track their own journey. Third, their probing questions gives your feedback and makes you think further, thus leading to a refinement of your ideas. A good teacher can become an even better writer!

Read Widely: As has been written, “Books have served me well through the years: which other product gives you a person’s lifetime of knowledge for a few hundred rupees? It is we who have to make an investment many times greater – with our time – to absorb and learn. And in today’s world of instant-everything and tweet-sized content, a book is a true joy to behold. Ploughing through the daily social media feeds may seem exciting but most are empty – like junk food. They can provide that instant gratification but they do not provide the depth needed to enhance our learning. That is something only good books do.” Carve out a few hours every week for deep reading.

Stay Healthy: Nothing impacts you negatively than poor health. Start early, build a routine, and stick to it. The work you are doing will demand your best at all times. Good health is entirely in your hands. Don’t leave it until it is too late.

Work-Life Harmony: And finally, don’t ever compromise on your family. No success is worth it without having loved ones to share it. Remember these words from “Startup to Proficorn”: “Create time and space for family. They are not just another ‘meeting’ to be scheduled in the calendar. They are the only ones who will also experience your highs and lows—perhaps even more than you. They are the ones whose unstinted support will push you to greater heights. Make sure you are always there for them.”

Focus on the journey, not just the destination. As Jerome Chouchan put it, “Right shooting always results in a hit.”

Wish you the very best!

Maya.

Next Chapter

The final point for the leap from CMO to CEO is:

• Prepare Future Agenda: Imagine tomorrow’s world and opportunities which disruptions will bring.

Envisioning the future and crafting a winning strategy in a competitive marketplace is one of the key responsibilities for a CEO. CMOs need to think beyond the quarter and the year to what technologies and disruptions can shape the future. Like a chess grandmaster, the CMO needs to start thinking several steps ahead. Let’s listen of what Maya may have said when she took over as CEO of A1Books.

As we prepare for the next chapter in A1Books, there are three big ideas that can shape our tomorrow: Digital Twins, AI Marketer, and MarCo.

Digital Twins: Imagine a virtual replica of every customer, which is a few steps ahead of the real customer. We can leverage the data and behaviour of customers, along with insights from similar “Best” customers and real-time event streams, to predict next actions and nudge customers along their buying journey, ensuring personalisation and a deeper understanding of their paths in the digital and physical worlds​​. This represents a groundbreaking approach in customer experience. We will call it A2D2: A2 representing the next evolution of A1Books, and D2 to signify the Digital Twin.

AI Marketer: No, we are not replacing our marketing team! We are creating “AI Assistants” for every one of you to take away the drudgery of daily, repetitive work. These AI tools are designed to handle the routine and time-consuming tasks that often bog you down, thereby freeing you to focus more on strategic thinking and deeper customer engagement. This shift allows you to leverage their unique human skills more effectively, fostering innovation and improving customer relationships by dedicating more time to understanding and anticipating customer needs. In future, I envision an AI Assistant tailored for each individual, streamlining their tasks for efficiency and quality, thereby elevating them to focus on more complex, value-added activities.

MarCo: A1Books will becoming a “market consolidator” – much like Constellation Software has done with niche software firms. By reinvesting our profits, we aim to undertake strategic acquisitions of smaller, specialised entities to enhance our market presence. This approach will not only expand our footprint but also diversify our product portfolio, enabling us to better meet the dynamic needs of our expanding customer base more effectively.

Articulating a compelling vision can significantly bolster a CMO’s candidacy in the eyes of a CEO search committee. When combined with a proven track record of performance and strong endorsements from references, this forward-thinking approach can effectively position CMOs as prime candidates for future CEO roles. It underscores their strategic acumen, ability to drive growth, and readiness to lead at the highest level, making them standout choices for succession.

**

To summarise: the 4-year, 7-point plan outlines a clear path for CMOs aiming to reach the CEO role. It focuses on achieving exceptional marketing results for two years, followed by two years leading a business unit. Throughout this journey, CMOs should actively articulate their vision for the company’s future. By demonstrating both marketing excellence and strong leadership across different business functions, CMOs can follow in Maya’s footsteps, overcoming the traditional barriers to emerge as prime candidates for the CEO position.