Digital Marketing

    Datapalooza.

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    Yesterday, I was on a panel at OMMA Performance in NYC called “The dream of the Digital Dashboard.”  (OMMA stands for Online Media Marketing and Advertising.) The program, curated by Cory Treffiletti — president of Catalyst S+F, a great digital strategy shop — was quite good. (One of the speakers was from Tynt.com, check it out.)

    On my panel I mentioned that tactics-palooza has created the need for dashboards and one of my panel mates, Marc Kiven, repurposed the sound bite into datapalooza, which had some serious ballast with the audience.  Nice ear Marc. (Sorry, had to say that.)

    Datapalooza reminded me of a meeting I attended a while ago in which someone from AT&T network management said “We need to collect all this performance data, then do something smart with it.”  It’s a word string, I never forgot. Today digital marketers are so covered in data it has become harder and harder to do something smart.  One reason is interoperability.  Most reports capture time on site, links clicked, referrals, browser type, geography, device, bounce, last page visited — times a hundred. And even though we’re in the age of open standards I sense many of these data points remain in unique software homes…not portable to other behavioral data sources and feeds.

    This interoperability issue reminds me of voice mail.  Have you ever moved from one job to another and had to learn new voice mail prompts?  What a pain.  If we are to improve the performance of digital performance, the industry needs to think about some basic standards. Perhaps that will transform datapalooza into a more sonorous environment.  Peace!

    The Digital Triangle. The Perfect Start-up Womb.

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    The digital triangle, located in NYC, bears three distinct corners.  DUMBO in Brooklyn. SOHO in Manhattan. Union Square, also in Manhattan.

    DUMBO is where the coders are.  A youthful tech workforce who live digitally-centric lives, they are smart and have engineer-friendly minds. (A lot of gamer consoles burn out in DUMBO.) It’s a little men and boy heavy.  Union Square is where the money is.  Where the incubators are.  It’s where the DUMBO denizens with entrepreneurial spirit visit with their hands out.  It’s close to NYU and also has a lovely, youthful energy. Parking is expensive in Union Square but the smart money walks the streets.  SOHO is what makes the digital triangle different.  It is where designers, the truly creative and exceptionally beautiful like to call home. They don’t live there really, just work, shop and hang. If you can’t get inspired in SOHO with all its art, nubes, soft tacos, fashion, and vibe, you can’t get inspired.  All these neighborhoods are a subway or bike ride apart and feed off of each other. It is a perfect storm for start-ups.  

    Unlike Sand Hill Road (money), its surrounding neighborhoods of Menlo Park, Palo Alto, etc. (tech engineers) and San Francisco (ad people) the Digital Triangle is close but not really connected. The west coast likes campuses. It works but not like the digital triangle. As technology’s pull increases and more and more of the economy is tied to digital commerce, NYC will grow in importance globally and will become a tech capital with no peer. Just ask Fred Wilson. Peace.

    Twisted Juice.

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    Mitch Joel and Jaffe Juice’s Joseph Jaffe squared off yesterday in a podcast that was a good deal of fun.  Each agreed they were good friends but that was about all they agreed upon — save for the obligatory strokefest at the end.  Mr. Jaffe is a principal at Crayon now owned by Powered and Mr. Joel is president of Twist Image a leading digital shop based in Toronto.  Both are published (books, blogs and pods) and practiced “duelists.”

    The discussion with which they played pong was “Is social media a discrete marketing practice?” Mr Jaffe says “yes,” Mr. Joel “no.” 

    The crux of the debate is this:  Social media needs to be well integrated into the marketing and digital practices of corporations. Today, it’s not.  Mr. Joel says there are smart companies doing so and he’s right.  Mr. Jaffe says those companies are the “exception not the rule” and he’s right. Powered is betting that specialized shops – best of breed social shops – will be better positioned to make waves and earn low hanging engagements.  Mr. Joel believes that cleanest most likely social successes will come from integrated digital shops, and in the long run that is probably more correct.  But his approach is less promotable and less newsworthy.   Social media is the haps today.  There is demand for it and a social marketing swell surrounding it. 

    Da Monies.

    So where is the money in social media?  Tweeting buy the pound? Friending by the hundred? In strategy?  Yep.  Where is the money in the integrated approach? The answer is tweeting by the pound and building websites – a more lucrative approach.  

    Win by Knockout?

    No. Both arguments are very compelling. Mr. Jaffe and Powered CMO Aaron Strout are loudly breaking new ground. (There are supposedly scores of quiet social media agencies in NYC alone.) Mr. Joel gets it for sure, and though his sound bite is not as powerful he will probably have higher margins this year. Were I a marketing director and these two pitching my business, I’m sure the last one to present would win the business.

    Google Buzzed?

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    “Fall forward fast” is a marketing maxim many have followed with great success. Be bold, be quick, correct as needed. It’s a fist-mover approach and it was good advice back in the day.  But the Internet has sped things up a bit don’t you think? Fast today is a lot faster than it was 4 years ago.

    Google Buzz was brought to market too fast. Is it correctable?  Sure.  Will Google take some heat? Sure. Will it recover, sure.  That said, I suspect there’s a little tainted blood in the Google bloodstream thanks to this effort and Google needs to take a breath.  When you launch a new service and the phrases “opt-out,” “disable,” “sorry,” “feedback” and “critics” become keywords of the coverage you have not done enough homework.  Google “google buzz”+”critics” and see what pops up.

    Facebook‘s Beacon advertising program wasn’t thoroughly vetted before launch nor was the Google Nexus One, released before back-end customer care issues could be properly handled.

    Overdogs.

    Did you watch the Superbowl? Which team did you root for?  The overdog or the Saints? Overdogs are leaders.  They, more than anyone, need to be careful when bringing new services to market. Take a breath. Do some reconnaissance. Let power users spank the brand a bit (“brand spanking” is a great overdog research methodology). Then launch. Too much Starbucks, as Zack de la Rocha might say, “can killa man.”  Peace!

    Paid vs. Free Media.

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    There are big discussions these days about whether or not media properties will continue to offer their products for free over the internet.  Will newspapers begin charging for daily news? Will magazines require subscriptions for articles and analysis? Will TV programming sites like Hulu submit to a fee structure?  There’s no question in my mind they will, so enjoy the free ride while it lasts.

     Citizen journalism will continue to grow and be free. It will be localized, time sensitive and a very vibrant source of news.  #carcrashamityville will turn up a story beating the local newspaper filings by hours. Blogger journalism and analysis will continue to be free but subsidized by book sales and speaking engagements. (When music piracy became a thing and musicians could make a living selling CDs, they acknowledged da monies was in concerts and merchandise sales.) Back in the day, valuable analyses and insight was sold in the form of paid newsletters, but that’s another business that has been drained.

    Professional journalism and media production (audio and video) will have to be paid. Why?  Because it will come with a branded, marketing infrastructure that requires upkeep. And though ad revenue will help, it can’t cover all the expenses. Peace!

    The Diffusion of Advertising

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    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!

    I Smell a Twitter Revolution.

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    Twitter’s soon-to-be-launched service @earlybird will transform marketing. @earlybird is a promotional service that posts participating companies’ specials and deals on a wide variety of products and services — a cut of each sale going to Twitter. It will generate billions in incremental sales for sponsoring companies and serious revenue basis points for Twitter. Such a deal!   

    No doubt they will find a way to organize these deals by category, e.g., restaurants, technology, consumer packaged goods and, more importantly, geography.  Think of it as  Woot.com but offering thousands of deals a day.  Someone commented about the service in The New York Times, thinking that it would gum up their twitter feed — deals flying across the screen every minute, but the beauty of Twitter is that you don’t have to follow @earlybird (I hope) you just have to visit the tweet stream. 

    Twitter will transform commerce well beyond coupons and customer service. And this 140 character promotional vehicle is just the beginning. The idea to have an idea.  I can smell marketers lining up. And small local businesses?  They’ll have an absolute  field day with this thing.  Oh the possibilities. Can’t wait. Peace!

    Screen Grab Retouching for All.

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    I suck as an art director but that doesn’t keep me from appreciating art and wanting to play at it. Having looked over the shoulder of some pretty good art directors, watching them silhouette and manipulate images and color, I know what can be done with the right tools. The problem is the tools aren’t ready for mainstream.  And they are not free.

    Polyvore

    Polyvore is a women’s fashion website gets this and has developed a smart application where users drag and drop various clothing and accessories together into “sets” or looks. The UI (user interface) lets you flop things, flip things, enlarge, reduce, change color and purchase. By surrounding that functionality with comments, a community of fashionistas, and smart curating (showcasing Taylor Momsen and Keira Knightly sets, for instance) Polyvore has created a business. 

    Snagit

    Polyvore has tapped into people’s need to art direct or fashion direct and it points to a business I think is ripe for the taking.  A company by the name of TechSmith is aware of this and sells a product SnagIt that lets you grab and copy pictures and images via screen grab and do with them what you will. It looks fairly easy and for active users is a deal at $49.95. But the web needs an ad-supported version of this software for free. Think of it as a rudimentary retouching site – much like Flickr was to photo sharing a few years ago. Make it simple and they will come.

    Look Behind the Digital Curtain.

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    oz curtains

    There is an amazing theory in physical anthropology called phylogeny recapitulates ontology which suggests that the ascent of man from micro to human form is recreated every time a baby is born. From fertilized egg the form grows fishlike, reptilian, birdlike, to muuun-key (as Peter Sellers used to say) and finally goo-goo gah-gah person.

    I think every marketer needs to experience life as a small business before making decisions for a large business — and that doesn’t always happen. Small business owners have to do it all and be responsible for all. They may not be good at everything, but they need to experience and understand everything.  Only when they “get” each business and marketing function can they make fair decisions about execution. Not all large business marketers see the whole picture and it’s a shame.

    Noah Brier a smart digital strategist at the Barbarian Group has said every marketing who uses the Web should take an interest in and learn, however rudimentary, to write code. Most slough off this advice, but he’s right. Like the marketer who needs to understand the evolution of the business from small to large and the scientist who should be aware of single cell to complex organism, the online marketer is better off if understanding just what’s behind the digital marketing curtain. And understanding its power. Peace!