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Foster, Bias & Sales. An Agency In Transition.

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I’ve written a few times about my desire to open an ad agency named Foster, Bias and Sales – staying away from the surname convention. Foster meaning raise or promote. Bias intended to suggest “create bias” toward a product or service. And sales meaning, well, the cha-ching of the cash register.

I was reading about racial bias today in an Op-Ed piece by Nicholas Kristof which referenced some interesting studies of racial bias among children and realized my new agency should not attempt to create bias toward a product or service, but leverage existing biases. Big difference. By leveraging ingrained product context, one can create a richer purchase environment.

An example:

At a car dealership, to create bias towards Toyota a salesperson might cite JD Power data on safely. Or higher resale value after 5 years. These are good logical proofs of product value.

Were we to leverage existing consumer biases on behalf of Toyota, maybe we’d look at the percentage of Americans who only buy America made products. Those people who don’t like to buy imports. What would it take to get them to value the brand? That’s a negative bias. Let’s look at a positive bias. Toyota was once, if not still, known to be the best selling single car brand in America. Leaders and overdogs are sometimes thought to be complacent. How about turning that bias on its head. Position the brand not as the leader, but as the hungriest car company. A company with an underdog mentality. Almost start-up like.

I can’t tell you when, or if, Foster, Bias and Sales will launch. But it’s a great brand name and always evolving. Hee hee. Peace.

 

McDonald’s Wan Announcement.

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Mcdonalds_logo

I posted yesterday what I thought McDonald’s was going to do to turn around its faltering earnings. I was thinking reformulate, Steve Easterbook was thinking restructure. Financial announcements to investment jockeys are usually about business and operations and that was, indeed, what we heard. I was hoping, naively so, that McDonald’s was going to talk about menu changes and healthier-for-you options that would mirror the tastes of today’s demographic and psychographic. And perhaps take it a step further and lead those who don’t care about healthier-for-you fair down the path of improved diet offerings that still taste good.

Some of this is happening, but Mr. Easterbrook buried the lead. Mostly what he talked about was global reorgs, less layers of management and bottom-line alterations.

Changing McDonald’s into a healthier for you fast food chain cannot happen overnight. I get it. But it has to start somewhere. And it has…by removing antibiotics from the chicken it now buys. For me though, this was the lead and they did not go far enough. This is where the market is going. This is where leaders take the reins.

An announcement about reformulation not a reorganization would have been bold. Rome wasn’t built in a day. Perhaps we should give them another quarter or two.

Peace.

 

A McDonald’s Prediction.

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In twelve minutes (as I begin this post) McDonald’s Steve Easterbrook will outline his turnaround plan here. This is what I think he should do.

Offer a healthier adjunct menu a la Chipotle. No additives, no preservatives, lower salt – you get the idea. Reduce the number of poorer health products to a handful, but keep them available (for a while). Only allow sale of the healthier for you products in-store while relegating the unhealthier items through the drive-up window.

On the healthier-for-you side of the house, change the menu to add some tasty alternative fair: maybe more fish, veggie burgers, better cheeses, a new class of potatoes and nice drinks. They’ll need to be mass-produced to keep speed up, but that’s where the new innovation must come from. This is where the invention must happen. The price points will go crazy at first, as will earnings, but this is a way forward.

McDonald’s is a great American company. It has not charged with the times or evolved with the science discoveries known to the health and food business. It can. It will. I can’t wait to hear what Mr. Easterbrook has to say.

Peace.

 

 

The Engagement Bank.

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I know the world is a digital world. And I don’t want to go all “geezer” on you, but if I hear or read one more CMO or CEO say they “want to increase engagement” ima (sic) go all Baltimore. Yelp CEO Jeremy Stoppleman used these words yesterday to defend his poor quarterly performance. I understand that the product is an online content play, fueled by user activity, growth and advertising but the word engagement just feels so dissociated from sales and revenue.

In the heyday of TV Networks (last week?), earning calls didn’t talk about the act of watching TV or focus on the number of viewers? (Of course show ratings were important.) They top-bottom lined the bottom line — with gross ad sales and net revenue.

Here’s the litmus test: If you are looking to purchase an online property with your own money, who would you want in your meeting: the chief engagement officer or the chief financial officer?

Start-ups, growth companies and mature enterprises of the digital nature, need to keep their eyes on the prize. The stuff that goes into the bank. The bank bank. Not the engagement bank.

Engagement is a means to an end, some are forgetting the ends. Peace.

 

First Ad.

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A company’s first ad is very telling. Every company should keep its first ad and frame it. Make it available as a tab under “About” on the website. One can predict a lot about a company by reading or watching its first ad. Typically it contains the company Is-Does: what a company is and what it does; something not always well-handled by mature companies, let alone infants. The first ad is likely done in-house. If done by an agency, that’s a good sign. It shows trust and willingness to invest.

First ads often makes one think about logo and tagline. And story. Most first ads happen when a company is small and control is centralized. It will therefore help readers understand vision and the ability of management to focus. It will also convey if the company is going to be “me” (inward) focused or “you” (customer) focused.

A first ad is like a baby. Hard work. Nerve-wracking. Often a little bit ugly. But something to love. It is a beginning.

Dust off your first ad and send it to me. I’ll give you a little blurb on how you have grown your brand since.

Peace in Baltimore.

 

 

Analysts Need To Chill About Twitter.

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twitterAnalysts are disappointed that Twitter’s quarterly revenue was up 74% and missed “expectations.” Last year this quarter revenue was $250 million. This year is was $436 million. Your right analysts, that sucks. I can smell the stench from here. Moreover, goobers in the financial field are calling for Dick Costello, Twitter CEO, to be fired. This scares me deeply.

Who is running the show here? I understand it was Twitter’s idea to IPO and they cast their lot with the sharks, but 74% growth, delivered with apologies for slow user growth does not make Twitter a dog.

Twitter is not a stock. Twitter is a world changing, future changing app. Let’s take a breath. Twitter is to social media what penicillin was to healthcare. Twitter is the Google of social media. This 140 character application has loosened up Iran (Green movement), brought down corrupt governments (Egypt), shared natural disasters in real time (China quake) and certainly saved lives. But it didn’t hit its projected earnings because some ad platform underperformed? Are you kidding me?

Please leave Twitter alone. Please allow leadership to innovate at a proper rate and modulation. Please keep the financial analysts away from arguably the best app on the planet. By your leave…

Peace.

 

 

A pig with a truffle.

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Good brand planners are collectors. They question, amass, sort, collect and divine. Great planners take all that and find the truffle. Like the truffle hunting pigs and dogs of Europe. I was recently on a call with some web app people, looking to fund the next big platform. I couldn’t quite tell what the platform was. Or wanted to be. Other than the next big web property. Money lined up, so they said, but the idea was hidden in 10 ideas. So what’s the Is-Does I wondered.

Well turns out the original idea was and is genius! Never done before. Done qith a capital D. In demand. In users’ hearts. And tied to one of the biggest investments a person is likely to make in a lifetime. Did I mention it hadn’t been done? The current construct, however, was nothing more than a Facebook Group.

This truffle hunter (me) listened and in minutes knew the problem.

What’s the Idea? Answer that, you of the web world, and you may proceed. Take it from someone who missed out on a brilliant web property (Google Zude+Scoble) because it was overbuilt. Suffered from feature creep. Didn’t follow the “idea.”

Peace.

 

IPG’s Starting to Samba.

The Interpublic Group of Companies (IPG) just announced a minority investment in Samba TV. Props to Michael Roth and Chad Stoller. This looks like money well invested.

I’m always looking for the Is-Does when it comes to brands and Samba TV seems to be an analytics company. One tapped into 10 million household TV cable boxes. The Does of the Is-Does may be best described by co-founder and CEO of Samba TV, Ashwin Navin: “We think that more data will allow brands to reach more people they care about and waste less of their media budgets.”

This bulls eyes the famous John Wannamaker quote “I know half my advertising is working, problem is I don’t know which half.” Samba TV may not corral the missing half, but it will start to get close.

Nice to see IPG getting back up on the horse again. It’s good for business. Peace!