A recent study by Nielsen Online shows that on all key measurements, online advertising boosted brand recall, favourable sentiment, propensity to purchase and a willingness to recommend the product.
Read Online ad study shatters myths
Thursday, November 27, 2008
Wednesday, November 26, 2008
Branding Versus Performance
I am talking to a lot of clients at the moment that are getting internal pressure about needing to justify their online spend through performance based metrics. And this I can understand, given budgets are tight for everyone. So brand campaigns are being set aside, and email marketing, search engine optimisation and database building are becoming priorities.
But what I am seeing is a dichotomy being set up, where people feel that they have to choose between a brand campaign and a performance based campaign.
The reality is that brand campaigns are the bed upon which engagement with the consumer takes place. Think of branding as courting, and direct response as seduction. A brand can't expect a good response rate with a consumer if it has not paid adequate attention to establishing the relationship and gaining a degree of authentic trust.
So what can happen is that branding goes by the wayside, and people wonder then wonder why their performance based campaigns don't work as well as they used to.
There is a theory bandied about that says a brand should spend its way out of a recession. On one hand this makes sense as a brand will have a greater share of voice when their competitors are on the retreat.
However, I will posit an alternative theory: during recessionary times, a brand should prepare itself for a boom by spending on itself - in other words, it is time to pamper.
Go back to your core brand and attributes, and make sure that your brand's house is in order.
But what I am seeing is a dichotomy being set up, where people feel that they have to choose between a brand campaign and a performance based campaign.
The reality is that brand campaigns are the bed upon which engagement with the consumer takes place. Think of branding as courting, and direct response as seduction. A brand can't expect a good response rate with a consumer if it has not paid adequate attention to establishing the relationship and gaining a degree of authentic trust.
So what can happen is that branding goes by the wayside, and people wonder then wonder why their performance based campaigns don't work as well as they used to.
There is a theory bandied about that says a brand should spend its way out of a recession. On one hand this makes sense as a brand will have a greater share of voice when their competitors are on the retreat.
However, I will posit an alternative theory: during recessionary times, a brand should prepare itself for a boom by spending on itself - in other words, it is time to pamper.
Go back to your core brand and attributes, and make sure that your brand's house is in order.
Friday, November 21, 2008
USA: whats in store?
Here's a great photo journal on the America's new leader worth a read.
http://www.boston.com/bigpicture/2008/11/the_next_president_of_the_unit.html
What digital marketers can learn from fishermen
Digital marketing has been around for around 15 years. Fishing for over a hundred thousand years, give our take the odd dry season! So what can we learn from the craft of fishing when it comes to online marketing? (Apologies in advance for using the gender specific term fisherman, but "fisherperson" doesn't flow quite so well!)
1. Pay attention to the weather and environment in general.
Fishermen choose not to fish on certain days of the lunar calendar, because they know that some days offer better fishing than others. In addition, they choose a particular time of day depending on the tide.
The same goes for online marketing and advertising. Your target market will be more receptive to your message on certain days of the week, and certain times of the day. If you don't know when these times are, then you don't know your target market. Be tactical about when you choose to engage with your audience. More time in the market does not mean you will get better results. Choose the best times. The environment may also be what your competitors are going. Don't be so focussed on your own goals that you ignore the view from above.
2. Prepare in advance
Fishermen prepare their equipment, and choose the right bait. They last thing they want is to travel to a location only to find they have tangled line, or the wrong bait for the fish in the area.
Most online marketers, and I include myself in this, are often too reactive, because we are so caught up in achieving quick results. More time needs to be taken in research, understanding then planning, so when we do start a campaign, we are setting ourselves up for success.
3. Plan what to do if you catch fish, or if you don't catch any, before it happens
Some days a fisherman will have a successful outing and catch plenty of fish, yet let them all go. Other days, they may catch just one, and keep it. Other days, they won't catch any fish, and instead go to the local fish and chip shop on the way home. Either way, a good fisherman knows what he is going to in each scenario.
The same goes for online marketing. Does your company or client have the resources to deal with outrageous success? Can you respond to spikes in demand, from a customer service, sales and distribution perspective? Is your PR company ready to deal with a deluge of results? Or what if a campaign fails . . . what then? Is there a backup campaign ready to roll as a contingency? There absolutely should be, as few businesses are able to get through disaster. Or you could do the marketing equivalent of going to the fish and chip shop - simply buy a list. However, we all know that fish caught ourselves tastes that much sweeter.
4. Focus on one location in which to fish.
Fishermen tend to go to one location and stay there. They may move up and down the banks of a river, or move along the ocean, but they focus on one main area and learn as much as they can in order to maximise their catch.
Online marketers and advertisers have a habit of using an approach that involves being in as many locations as once. This is a hangover from mass media tradition. There is no need. Focus on one main online environment, and own it. Who knows, you may even find somewhere to get your message our there that few others are aware of. In that case, keep it to yourself and market as hard and fast as you can before others start to bag your consumer base themselves.
5. Have patience
Ever seen a fisherman just standing there, appearing to do nothing? Ever fished for hours and nothing happens, then within the space of 30 minutes your start getting nibbles and bites?
Don't give up on a method or location too early. Often all it takes is slight tweaks to turn an average campaign into a good one. Premature disbandenment of a strategy or tactical situation leads to a lose/lose situation for all concerned. Let momentum grow, and be prepared to delay stopping a poorly performing campaign by a few days - you have made the investment in the campaign already, so writing it off is a huge decision.
6. Be prepared to change your bait.
Some fishermen are content with using the same bait every time, as they know what sort of fish they will get. Other fishermen are continually changing their bait in the hope of catching bigger fish.
Just because a tactic has worked in the past, and you know what results you will get, doesn't mean it is the best tactic or creative for every situation. I had a client once say to me that they were happy with the 2 percent conversion rate they were getting for their online campaigns, and that they didn't need more sales (true story!). I managed to talk them into experimenting, with a fairly small media spend, on a different strategy, and we almost doubled the conversion rate. Don't settle with the same strategy and tactics just because they work. Be prepared to continually revise, rework and experiment. I am not saying apportion most of your budget to experimentation, but 15% seems to be around the right mark.
7. Never fish alone on rocks
Fishing from rocks is fraught with danger. You could slip; a freak wave could knock you off the rocks, or worse. Never fish alone in dangerous conditions.
The same goes for tough economic conditions. Now more than ever, instead of being protective about your own clients, learn from others as much as you can, and network. Be prepared to do co-promotions with brands you may never have thought of but fit your target demographic - thus you both save on costs. Putting up the shutters and adopting a survivalist mentality will not only result on your market shrinking, it also isn't much fun. And everyone needs motivation. So go on, organise lunch with your biggest competitor - I guarantee it will be worthwhile.
Peter's addendum: There are many areas in which digital marketers should not be like fisherman, such as bonking consumers on the head with a stick, or placing consumers in a bucket of water to keep them fresh.
1. Pay attention to the weather and environment in general.
Fishermen choose not to fish on certain days of the lunar calendar, because they know that some days offer better fishing than others. In addition, they choose a particular time of day depending on the tide.
The same goes for online marketing and advertising. Your target market will be more receptive to your message on certain days of the week, and certain times of the day. If you don't know when these times are, then you don't know your target market. Be tactical about when you choose to engage with your audience. More time in the market does not mean you will get better results. Choose the best times. The environment may also be what your competitors are going. Don't be so focussed on your own goals that you ignore the view from above.
2. Prepare in advance
Fishermen prepare their equipment, and choose the right bait. They last thing they want is to travel to a location only to find they have tangled line, or the wrong bait for the fish in the area.
Most online marketers, and I include myself in this, are often too reactive, because we are so caught up in achieving quick results. More time needs to be taken in research, understanding then planning, so when we do start a campaign, we are setting ourselves up for success.
3. Plan what to do if you catch fish, or if you don't catch any, before it happens
Some days a fisherman will have a successful outing and catch plenty of fish, yet let them all go. Other days, they may catch just one, and keep it. Other days, they won't catch any fish, and instead go to the local fish and chip shop on the way home. Either way, a good fisherman knows what he is going to in each scenario.
The same goes for online marketing. Does your company or client have the resources to deal with outrageous success? Can you respond to spikes in demand, from a customer service, sales and distribution perspective? Is your PR company ready to deal with a deluge of results? Or what if a campaign fails . . . what then? Is there a backup campaign ready to roll as a contingency? There absolutely should be, as few businesses are able to get through disaster. Or you could do the marketing equivalent of going to the fish and chip shop - simply buy a list. However, we all know that fish caught ourselves tastes that much sweeter.
4. Focus on one location in which to fish.
Fishermen tend to go to one location and stay there. They may move up and down the banks of a river, or move along the ocean, but they focus on one main area and learn as much as they can in order to maximise their catch.
Online marketers and advertisers have a habit of using an approach that involves being in as many locations as once. This is a hangover from mass media tradition. There is no need. Focus on one main online environment, and own it. Who knows, you may even find somewhere to get your message our there that few others are aware of. In that case, keep it to yourself and market as hard and fast as you can before others start to bag your consumer base themselves.
5. Have patience
Ever seen a fisherman just standing there, appearing to do nothing? Ever fished for hours and nothing happens, then within the space of 30 minutes your start getting nibbles and bites?
Don't give up on a method or location too early. Often all it takes is slight tweaks to turn an average campaign into a good one. Premature disbandenment of a strategy or tactical situation leads to a lose/lose situation for all concerned. Let momentum grow, and be prepared to delay stopping a poorly performing campaign by a few days - you have made the investment in the campaign already, so writing it off is a huge decision.
6. Be prepared to change your bait.
Some fishermen are content with using the same bait every time, as they know what sort of fish they will get. Other fishermen are continually changing their bait in the hope of catching bigger fish.
Just because a tactic has worked in the past, and you know what results you will get, doesn't mean it is the best tactic or creative for every situation. I had a client once say to me that they were happy with the 2 percent conversion rate they were getting for their online campaigns, and that they didn't need more sales (true story!). I managed to talk them into experimenting, with a fairly small media spend, on a different strategy, and we almost doubled the conversion rate. Don't settle with the same strategy and tactics just because they work. Be prepared to continually revise, rework and experiment. I am not saying apportion most of your budget to experimentation, but 15% seems to be around the right mark.
7. Never fish alone on rocks
Fishing from rocks is fraught with danger. You could slip; a freak wave could knock you off the rocks, or worse. Never fish alone in dangerous conditions.
The same goes for tough economic conditions. Now more than ever, instead of being protective about your own clients, learn from others as much as you can, and network. Be prepared to do co-promotions with brands you may never have thought of but fit your target demographic - thus you both save on costs. Putting up the shutters and adopting a survivalist mentality will not only result on your market shrinking, it also isn't much fun. And everyone needs motivation. So go on, organise lunch with your biggest competitor - I guarantee it will be worthwhile.
Peter's addendum: There are many areas in which digital marketers should not be like fisherman, such as bonking consumers on the head with a stick, or placing consumers in a bucket of water to keep them fresh.
Wednesday, November 19, 2008
Facebook goes Checkbook
I am not a heavy Facebook user - I use it basically to keep up to date with any new developments that may occur on the social networking platform.
That said, I am starting to become concerned about the steps towards monetisation that Facebook is taking.
Facebook relies on user generated content, and the development of applications. The applications especially have helped Facebook "catch" and achieve critical mass.
However, Facebook is now starting to introduce interesting fees to monetise its traffic.
So far, the only one officially confirmed is a fee for developers to have their applications "approved" by Facebook - and we are talking around US$400!
What this means is that there will be more applications that are added for purely commerical reasons, as developers need to get their money back somehow, and this can only mean a degraded experience for users. What it also means is that many of the great applications that really add value to Facebook and don't have commerical motives won't be submitted.
Message to Facebook: your key clients are the Facebook users, not commercial interests. As soon as you prioritise commerical interests over those of the users, you will lose loyalty.
Also, the people that pay the bills will want to have their applications featured more predominantly than they curently are, which means the interface will have to change (again), thus resulting in a negative outcome for the users.
Another fee that I am hearing whispers about is a small monthly charge of around 4 dollars for each user to utilise the service.
Charging for what was previously a free service will cause a degree of backlash, and also leaves a gap in the market for someone prepared to offer the same thing for at no cost (Google can you hear me?). Charging a monthly access fee is an inelegant solution to the problem of monetising traffic.
My key point regarding Facebook is this: people do not value Facebook, they value their connections within a social media construct. If these relationships can be transported easily, which of course they can be, then Facebook becomes an empty shell.
That said, I am starting to become concerned about the steps towards monetisation that Facebook is taking.
Facebook relies on user generated content, and the development of applications. The applications especially have helped Facebook "catch" and achieve critical mass.
However, Facebook is now starting to introduce interesting fees to monetise its traffic.
So far, the only one officially confirmed is a fee for developers to have their applications "approved" by Facebook - and we are talking around US$400!
What this means is that there will be more applications that are added for purely commerical reasons, as developers need to get their money back somehow, and this can only mean a degraded experience for users. What it also means is that many of the great applications that really add value to Facebook and don't have commerical motives won't be submitted.
Message to Facebook: your key clients are the Facebook users, not commercial interests. As soon as you prioritise commerical interests over those of the users, you will lose loyalty.
Also, the people that pay the bills will want to have their applications featured more predominantly than they curently are, which means the interface will have to change (again), thus resulting in a negative outcome for the users.
Another fee that I am hearing whispers about is a small monthly charge of around 4 dollars for each user to utilise the service.
Charging for what was previously a free service will cause a degree of backlash, and also leaves a gap in the market for someone prepared to offer the same thing for at no cost (Google can you hear me?). Charging a monthly access fee is an inelegant solution to the problem of monetising traffic.
My key point regarding Facebook is this: people do not value Facebook, they value their connections within a social media construct. If these relationships can be transported easily, which of course they can be, then Facebook becomes an empty shell.
Super Widget
This is a super widget. A screen full of widgets. Quite nice execution of a simple idea.
http://now.sprint.com/widget/
Image from flickr
http://now.sprint.com/widget/
Image from flickr
Tuesday, November 18, 2008
More US Election insights
More insights into the recent US elections. Very clearly Barack Obama had managed to leverage support via social networks over John McCain.
The Republican camp should have seen the warning lights well before the election that John McCain was probably not going to make it to the White House.
More interesting data at:
http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/
Friday, November 14, 2008
The Myth of the Social Media Expert
I am becoming concerned by the number of social media experts / digital strategists that are popping up. My opinion is that none of us are experts just yet as the medium evolves so quickly, yet I am starting to see a number of people espouse their expertise on the basis of having a lot of connections on Facebook/Twitter etc.
If we were to judge expertise simply by the number of people who recognise their name, then George W. Bush would be regarded as a political genius, when clearly he is not.
The line between online marketing professionals and online marketing enthusiasts is becoming very blurred.
So how does a brand know if they are dealing with a professional or simply an enthusaist? Here are some tips:
1. Ask the person for real world examples where they have created an online strategy that has really transformed a company. It is fine for someone to come along and say "the future is in social media," but ask for real world examples.
2. Ask for contact details of people that they have truly helped in the business world. Not email addresses, phone numbers.
3. If they spend a lot of time participating in social media, ask yourself how much time they actually spend devising strategies. Is there a reason that they have so much free time?
4. Ask them what marketing philosophies they adhere to. This is a simople way to sort out the professionals from the enthusiasts.
5. Ask them about some practical problems you have, and how they would solve them. You need someone who is prepared to roll up their sleeves and get their hands dirty, not just a consultant that has no emotional buy-in.
Just because someone is active at social media does not mean they are any good. Someone can play golf their whole life, but will still never get close to shooting a par round. Quality isn't measured by volume or level of participation: it is all about a practical record and results.
If we were to judge expertise simply by the number of people who recognise their name, then George W. Bush would be regarded as a political genius, when clearly he is not.
The line between online marketing professionals and online marketing enthusiasts is becoming very blurred.
So how does a brand know if they are dealing with a professional or simply an enthusaist? Here are some tips:
1. Ask the person for real world examples where they have created an online strategy that has really transformed a company. It is fine for someone to come along and say "the future is in social media," but ask for real world examples.
2. Ask for contact details of people that they have truly helped in the business world. Not email addresses, phone numbers.
3. If they spend a lot of time participating in social media, ask yourself how much time they actually spend devising strategies. Is there a reason that they have so much free time?
4. Ask them what marketing philosophies they adhere to. This is a simople way to sort out the professionals from the enthusiasts.
5. Ask them about some practical problems you have, and how they would solve them. You need someone who is prepared to roll up their sleeves and get their hands dirty, not just a consultant that has no emotional buy-in.
Just because someone is active at social media does not mean they are any good. Someone can play golf their whole life, but will still never get close to shooting a par round. Quality isn't measured by volume or level of participation: it is all about a practical record and results.
Tuesday, November 11, 2008
The Validation of Online Marketing
Barack Obama's victory in the recent US elections was a milestone in history on many levels. This includes what I believe is a validation of the importance of digital marketing strategy.The figures are staggering. The Barack campaign managed to attract more donors to his campaign than what the Democratic or Republican party did across the whole of the US.
His campaign team showed a great understanding in the online space. It's almost unforeseeable that any leader of the US in the future could get into office without integrating internet marketing with other established marketing mediums to the extent that the Obama campaign has.
Online marketing has come of age. It is well and true mainstream.
Wednesday, November 5, 2008
Killer Hardware Needs Killer Software to sell
Amazon has a gadget that is an electronic book reader, called Kindle, using electronic paper which allows people to download a soft copy of a book via wireless.What is different about this device to a PDA is the electronic paper output the Kindle uses,which doesn't need to be backlit like an LCD and reflects light. So it can be read clearly in sunlight just like paper.
Amazon isn't the only company selling devices using this e-ink electronic paper. It certainly isn't the highest spec reader either as the resolution is only about 150 dpi while the Sony LIBRIé is rated at 300dpi, on par with real paper resolution. However the Kindle is the device most likely to succeed because Amazon has the killer software to go with it's killer hardware.
Monday, November 3, 2008
Creativity, Street Art and Authorship
We are living in a time where a good idea executed effectively can create strong impact. Pure creative consciousness is the essence of ideas. Tapping into this resource is easier for some, while sharing the idea is hard for most. With sites, or phenomenon rather, like flikr, youtube and digg, the sharing of ideas is the core construct behind their success. We all need to realise the power of this and let go of our inhibitions we have about ideas being owned. Of this Roland Barthes wrote in the Death of the Author in 1977 that "a text’s unity lies not in its origins... but in its destination."
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