Latest

    Digital Marketing

    The Diffusion of Advertising

    By
    Steve Poppe
    -
    0

    Advertising ain’t what is used to was (a little Southernism I made up). Creation of big selling ideas by highly paid creatives and marketing people, broadcast to millions via TV, radio and print was the ad business.  Today, thanks to technology, the ad business is undergoing a diffusion like never before. Digital agencies, though not yet offered a seat at the big table, are new and important players.  Google is the most profitable advertising agency in the world and Facebook is hot on their trail.  And when I say “mobile advertising” does any one company come to mind?  That one is going to be huge…but it’s still to play out.

    Buy or Build?

    Big traditional ad agencies clearly see the need to offer digital, social and mobile but are asking themselves “Do we buy or build?” Right now they’re doing both: hiring someone smart in each discipline and using them to select cottage industry players who are truly immersed.  Better than last year, which was all “Go out and get me a subservient chicken.”  Or “Find me those nerds who built the US Weekly Facebook poll.”

    I’ve long thought that mid-size agencies were poised to win in this diffuse advertising world, but now I’m not so sure. True, they can more quickly parlay a powerful branding idea into a market-moving integrated campaign but the model may not be extensible.

    Bud Cadell is right when he says the old ad agency model is broken. It will take open minds, forward thinking, experience, software, an understanding of brand building, and lots of money to fix the process. I’m of the mind that the successful model is more likely to come out of MDC Partners than WPP.  It will be fun to watch though. Peace!

    Spotlight On Social Media – Today and…

    By
    Steve Poppe
    -
    0

    Spotlight on Social Media was held yesterday in NYC, put on by the Participatory Marketing Network (PMN) and Direct Marketing Association (DMA).  There were a couple of important takeaways every marketer should think about. 

    Intent.

    Search is still important, no doubt, but it’s a little 2008.  Immediacy – what’s happening now — is the rolling thunder these days, so services like Twitter and Foursquare are the rage but the marketing future is something Rapleaf’s co-founder Vivek Sodera calls “intent driven” applications. Think of a suped up Four Square To Do tab. Facebook will certainly build an intent-based app and others in the VC pipeline will emerge, but just know intent+social+search+moblie is going to pay out lotto style. 

    Unanonymous

    I know, I know it’s not a word. But it’s a better word then unanonymize, which is the word that clanked like a dropped crowbar off Mr. Sodera’s tongue during his presentation.  Hee hee. That said, it’s a word that wonderfully describes what Rapleaf does. Rapleaf crawls the web and creates single records of an individual’s behaviors, activities and associations.  And surprisingly, it’s not that scary.  They do this using your email address and a cool piece of software. In email or direct parlance they append records using the social web. When I asked to be unanonymized, the Rapleaf software generated 100 of my web proclivities, the first of which was something called “Social Care” a membership I did not recall.  All the rest were spot on. 

    Facebook

    Facebook also presented at Spotlight and mentioned its 60 million daily logins put prime time television to shame. Sean Mahoney’s case studies of marketer successes were very impressive and prove that Facebook is the “new” digital. Its targeting capabilities are phenomenal.  There are specialty ad and marketing shops opening up just to handle Facebook-enabled selling and they’re worth looking in to.  It’s a cottage industry on the way to becoming transformational.   

    Others

    Other smart companies worth mentioning include Acxiom, a behemoth company that also transforms social data into social profiles (for targeted marketing), Cisco which has a neat B2B app in its NowVan program (like Kogi BBQ trucks for routers) and Air Miles a rewards program out of Canada, trying hard and having very good success. 

     Michael Della Penna of the PMN and Conversa Marketing and Neil O’Keefe of DMA deserve shout outs for empanelling a great program. Peace..it together!

    Digital Media Off the Rate Card.

    By
    Steve Poppe
    -
    0

    David Carr published an interesting piece in today’s New York Times about Nick Denton, his Gawker Media tech blog Gizmodo, and the lost next gen iPhone.  According to Carr, the blog post generated 3.6 million hits on Gizmodo – a site averaging 90,000 hits a day. 

     (Not too long ago, during the tough economy, Mr. Denton decided to pay his staff of writers based upon hits.  The more papers you sell, said the crusty old news man, the more money you make. When the pay-per-readers story hit the wire, Mr. Denton was vilified and some good writers left. Buh-bye, said he.)

    The writer who broke the lost iPhone story was well paid for her/his day’s work and Gizmodo’s brand made it to Ohf-rah (Oprah). Eastman Kodak, who serendipitously bought all the ads on Gizmodo for the day, reaped mad dividends in terms of reach. (What’s the opposite of “make good?”) 

    Mr. Denton’s maligned approach to paying writers for audience portends things to come in social media.  Media will be bought based on eyeballs.  And media will be bought based on transactions. When this equation makes it to traditional ad agencies you may even find the creative output changing. That is, some of the ads won’t be built for portfolios but for consumer interest and traffic. Social media will soon be monetized based upon consumer interest and sales, not the rate card. And it will be exciting to watch. Peace!

    The Ascent of Marketing.

    By
    Steve Poppe
    -
    0

    Back in the 1700-1800s (in the U.S.) if you needed stuff you either made it or went to the general store.  The Sears, Roebuck and Co. catalogue was the next marketing innovation (1888), showing pictures of products and published prices, allowing customers to purchase by mail. Among the 322 pages in the catalogue published in 1894 must have been products didn’t sell and had to be replaced. The birth of ROI? 

    Television

    The next massive marketing innovation was television. Television commercials which began in earnest in the 1940s became the most popular, effective form of advertising. But can you imaging trying to track sales to media and production back then in the very beginning? “Where’s the ROI? How do you measure this stuff?” Mad men. 

    The Web

    Fast forward to the Inter-nech. Banner ads and ad serving allowed us to count clicks. 2% click thru rates. Whoo hoo. Click to buy. Whoo hoo. But not everything could be bought over the web. (Discussion of that for another day.) CTRs diminished and web display ads became, so said the salespeople, a branding mechanism.

    Social Media

    Enter social media.  And consultants. When consultants out-number practitioners you know the market is in flux. The Altimeter Group, some very smart people let me just say, created a social media presenttion ‘splaining how to measure social media via a marketing analytics framework. Here are some of the measurables: share of voice, audience engagement, conversation reach, active advocates, active influence, advocacy impact, customer problem resolution rate, resolution time, satisfaction score, plus a couple of metrics tied to gathering input for product innovation. What’s not mentioned here, something Messrs. Sear and Roebuck might have added, is sales.  I love consultants ( am one) and the Altimeter Group is growing like a dookie, but until they and all of us tie these type of metrics back to da monies, we’re just making paper.

    A smart client at AT&T once said to me, “we collect all this data now we have to do something smart with it.”  That’s business. That’s return on strategy. Peace!

    How to Charge for Social Media.

    By
    Steve Poppe
    -
    0

    I was chatting with a friend at JWT the other day about how agencies can’t make money in today’s social media entranced marketplace  — and I may have solved the problem.  Here goes:

    Say you come up a with a big engagement idea. It’s for a new product launch and you have created a fun video demonstration of the product.  A couple of graduate students from NYU did the production at a cost of $4,500.  You work at Publicis and know you can post the video for free and the mark-up won’t pay for the pastry at the presentation meeting.  How do you price it? Staff it? Measure it? Is it done under a retainer? Oy.

    The answer is simple: You price it based on delivered reach, with a smidgen of frequency.  If the video is viewed 0-24,999 times (uniques) you charge $2,500.  If seen 25,000 to 75,000 times $4,500….and so on.

    If the video is linked to another site, Publicis earns a bonus based on other site’s traffic plus the additional views. If the video gets played on TV or a big portal, another bonus plus those views. Think of the model as part SAG/AFTRA, part pay-per-view, part Nielsen Ratings.

    Now that wasn’t that hard, was it? Piece. I mean Peace!

    Corporate Social Media Departments.

    By
    Steve Poppe
    -
    0

    I met with someone smart yesterday and shared my view that in the future large corporations will have their own social media departments — staffed with writers, videographers, photographers, coders and digital editors.  This senior strategy and innovation officer processed the thought, nodded in partial agreement, then noted that the level of creativity likely to come out of this type of group would be modest.  He was right. 

    An internal social media department will do a good job of relating the corporate viewpoint, organizing proof and demonstrations of product value, and it will do so accurately… but in the end it will lack that creative oomph provided by an agency. And here, I mean a digital or a brand agency. 

    That’s not to say internal social media departments won’t happen, they will. They already are.  But the talent level required to do it BIG, won’t be found on staff.  Sure, some implementation can be handled inside, but not the big honkin’ creative idea. Not the polished sight and sound. And agencies need to figure out how to charge for that idea? Beyond production and mark-up that is.  Does the answer reside within Google?  Hmmmm. Peace!

    1234Page 2 of 4
    © Newsmag WordPress Theme by TagDiv