Marketing

    Marketing Disorganizations.

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    A new study published by McKinsey suggests that the quality of brand management is eroding around the world. One data point suggest over half (55%) of corporations polled are seeking to improve brand management. The culprits are globalization, staffing inefficiency, the increased use of digital media, matrix organization structures (many, rather than one boss) and the perceived need to put more specialists on brand teams.

    In a separate study, the CMO Council published this: 41% of client companies said they were working in a “moribund organizational culture“.  So brand management needs to be fixed.  

    How about the agency side?

    The CMO study suggested 35% of brand companies are unhappy with the integration and alignment of the agency networks with which they worked — so, agencies aren’t faring much better organizationally. At the 4A’s Jay Chiat Account Planner Awards this past year, there was some grousing that clients are fed up with having as many as four strategic planners in a meeting when all the agencies are brought together: one from the AOR, one from direct, one from digital, one from promotion. Add to that all the specialty services agencies must now provide and you can see the garden is growing out of control.

    It’s for this reason that mid-size shops have a leg up in delivering inline communication programs. (Not offline or online.) Mid-size shops have the ability to share and play together better — and they have better oversight.

    It may be counterintuitive but organizational innovation (and efficiency) is most likely to come from mid-size shops (read KBS Partners, Crispin, Straw Frog) than from the big boys and girls. And when that happens, the marketing companies will hopefully follow suit and better integrate. Peace!

    Google is an Advertising Company.

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    I’ve written before about Google’s “culture of technological obesity” saying I think the company is taking on too much outside of its core mission.  Phones, productivity apps, the list goes on and on. The reality is — the dirty little secret no employee will readily admit — is Google is an advertising company.  (Google Doubleclick.)  Eric Schmidt and his peeps know this but it doesn’t play well at cocktail parties. The technology badge is what they wear most proudly.

    Of the $6.78B in revenue announced this quarter, the lion’s share was ad generated.  Now don’t get me wrong, I love Google.  I’m not a hater. They need to succeed.  Google really is changing the world for the better. But they will Divest or Trivest at some point.  The company is a 3-ring business circus.  And because one of the rings — most profitable ring – is advertising, and because Google hasn’t been putting all of its efforts into providing innovation in advertising, it will lose market share. Ad revenue will still grow, but Google will lose market share. My bet is Facebook and Twitter will take share. Facebook is already doing it and Twitter has just begun.

     Advertising is about search, yes, but also about referral and context and point of sale (POS).  Twitter may have a leg up by combining all four.  To all the developers at Chirp…advertising still is da monies!  Peace!

    Is Resonance the Grail?

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    My first encounter with metrics was when a friend at Ogilvy Direct (now OgilvyOne) explained how Vanguard Funds tracked ads to resulting investments.  Each ad had a unique code that found its way through the process and when money was deposited it generated an advertising-to-sales ratio. Ad creative, size, media could all be calculated.  This approach is why direct marketing, nee direct response, nee direct mail agencies were the digital agencies of the day in the 70s and 80s.

    In the 90s banner ads were the haps.  They were new and measurable and web advertising was ready to kill traditional. But as click-through rates diminished sales people told you banner were awareness builders. Display ads started to get bigger and richer and CTRs increased again. Then search became the new “new” and SEM/SEO shops multiplied like rabbits.  Search though, is a half nasty business — with a good deal of practitioners hacking their way to the top. (Are these the people who always talk about authenticity?)

    Resonance.

    Today social media is the haps. And social companies are finally taking monetization seriously.  Twitter’s resonance concept is a great start. Twitter’s Promoted Tweets measure nine factors to determine resonance, which is used to determine whether an ad stays or goes and what to charge. According to the New York Times, three of those factors are “number of people who saw the post, the number of people who replied to it or passed it on to their followers, and the number of people who clicked on links.” Some say social media is not about selling, it’s about engagement. That’s like saying you go to a singles bar to make friends. It’s only a 5% true. Resonance tied to sales is coming. Who ever cracks that code will be the David Ogilvy of the decade.  Peace it up!

    The Real “Situation.”

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    Before SI meant Sports Illustrated it meant Situationist International, a European movement intended to create social change through loud, startling political events.  Anyone familiar with the punk movement knows Malcolm McLaren (RIP).  Mr. McLaren sired the Sex Pistols, practiced SI and was a huge music and cultural catalyst.  In the 50-70s the Situationists were angry and focused on political change. When Mr. McLaren introduced punk to the world and NYC in the 70s he was angry but he was a lot more.

    Just as Greenwich Village called to America’s gay and lesbian communities back in the day, punk placed a call to the country’s disaffected youth in search of their own Woodstock… and they came to downtown NYC in droves.  It was an interesting time, with lots of layered social texture. Mr. McLaren was a big part of this movement.

    Marketing Situation.

    A handful of marketing companies today attempt to acculturate products into our lives. Strawberry Frog, for one, is very vocal about creating “cultural movements.”  Experiential marketing companies such as Momentum look to jump-start change in new and unique product-centric ways thought events and promotions.  As the internet, mobile and geo-location grow in marketing stature we will begin to have more and more fun using these tools to drive sales — but let us remember Mr. McLaren: All tool and no movement can make for a soft, smarmy effort. Peace!

    Important! Brand Names.

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    What’s in a name?  Everything.  Would Tiger Woods have attracted the same attention (hmm, hmm) had his name been Frederick?  Would McDonald’s have enticed as many coffee drinkers had they named it McCoffee?  Would the iPhone had the same penetration with the name Nexus?  Hee hee. 

    Your brand name is your package…without the package.  A good brand name is critical.  I love my brand “What’s the Idea”? It’s active. It challenges thought. Has a bit of a NY edge. As a brand planner, it defines what I do: Find the business building brand idea. 

    Zude vs. Mashpan

    If brands are empty vessels into which marketers pour meaning, then colorful descriptive vessels have a head start.  I worked for a very cool web property called Zude.  The CTO used to say “dude” a lot and no one owned the Zs so that’s what we went with. Doh. Zude was the world’s first drag-and-drop, free form social computing property.  I used to say “If you can drag and drop and type, you can have a website.” There were very few objects on the web you couldn’t drag onto your Zude page.  I lobbied for the name Mashpan.  “Mash” being shorthand for mash-up and “Pan” meaning everyone, everywhere, everything. (Mashpan also sounds like a home brewer’s tool…and I like beer.)  Zude vs. Mashpan may have been a billion dollar decision.

    Hey start-ups, sweat the name. And for those of you thinking about changing your name? Should you have a nice pour in your vessel already, think twice. Peace!

    Digital Black Eye.

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    Last week a VP of human resources was telling me about a “digital strategist” position he was trying to fill. His was a digital shop whose roots were in SEO and SEM.  The client roster was a veritable Who’s Who and they were growing like a dookie but wanted to expand in the direction of web and application development and better compete against the likes of Razorfish, Big Spaceship, and R/GA.

    Again, the job was “digital strategist.” Listen to what he had to say and I paraphrase: “Our digital strategists are hybrids and kind of hard to find.  They are part account manager, part technologist, ideation generator, account planner and handler of analytics.” Pause for effect.

    First of all, this person doesn’t exist except maybe at the highest level of a company.  Good shops need 5 departments to do all this well. These disciplines are so different my head is spinning.  Here’s a technology word for this shop “scalability.”  And here’s a prediction: There won’t be any Cannes Cyber Lions or 4As Jay Chiat Awards in this shop’s reception area any time soon.  Worse, this approach will give digital shops a black eye. You might be able to search for these keywords online, but not on street.  OMG. Peace!

    Meaningful Memorable Context.

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    Product placement is a funny thing; more often than not when you see a brand in a movie or a TV reality show it’s been placed there at a price.  Most of the time, those placements are heavy-handed and disruptive — not a good thing.  If a viewer feels the product has been curated into a story it suspends belief.  Kind of like bad acting.

    When discussing commercial social media I often refer to the need for the brand poster – the person posting on behalf of the brand — to create a persona, complete with a tangible, obvious motivation.  For Zude.com, for instance, “Tip-Z” was created as a roving help person.  She assisted people with the drag and drop application, but she did so as a bit of a tippler. Hic.  So some of her help came out a bit garbled, goofy and funny.  Personality flaws aside, it made Tip-Z real.

    Product placement on TV that doesn’t fit or social media personalities that lack personality underachieve. Content may be king but context is key.  One way around what Steve Rubel calls “The Attention Crash” is to create muscle memory for brands.  While others are out there shamelessly hawking product and services one on top of the other, smart brands are standing out because they create memorable context. Meaningful, memorable context. Peace!

    CNN and Militiagan.

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    CNN is tanking.  Its ratings are down. Its ad revenue is down. Fox News is eating its dinner. When I think of CNN I think Wolf freakin’ Blitzer.  Ask a middle age woman in the grocery store about CNN and she’ll likely say “Oh, that Anderson Copper.”  Ask your parents?  Larry King.  Ask a kid and the response will be “Isn’t that the Vampire Diaries channel?

    CNN is at its best during crisis.  It is where people turn for the best coverage. That is where I went to watch the Tsunami not bear down on Hawaii.  CNN is the place for serious news, yet it has seemingly lost its way.   It must stop playing around with Twitter and touch screens and interactive maps. Most of its reporting takes place in the studio.  CNN needs some youthful exuberance. If Mark Zuckerberg can help found a bazillion dollar company, CNN can find some young interesting news junkies to rove the planet and kick up a story or two.

    The Fix.

    Here’s what management needs to do. Conduct market research among the next generation of news consumers –twenty- and thirty-somethings. Find out what they want, and don’t tell me a mobile news app.  Search for some rock star passionate journalism school kids hungry to make a better world.  Give them jobs.  Don’t go the eye candy route, that is so 1970s.  Hire Nicholas Kristof as a consultant then shutter the studio for 3 weeks and take CNN on the road.  Set up a remote desk on the back roads of Militiagan or Lubyanka subway station in Moscow. Fire a suit and hire a camera person.  Fire an accountant and hire a sound person.  Find the news to make the news. Take back what you once so proudly owned.   Peace!