Monday, September 28, 2009

Just Because they have something to sell doesn't mean you have to buy it

You can always tell when the economy is tanking and media spending is down by the types of ads running on local TV. Small businesses, especially those that have never advertised, are besieged with offers from stations working hard to fill empty time slots. The media rep shows up, offers some vaguely familiar shows on which to advertise, boasts about how many folks are watching at 2:15 in the morning, throws in a little free production...and the sale is made.

This morning I saw perhaps the most stunning misuse of the medium, a 30-second spot for a company selling prosthetic limbs. Complete with a jingle.

If you’re small enough that you’ve never done TV, there’s probably a good reason. TV is a great medium but it’s not right for many small businesses – the cost/benefit ratio is bad.

Before you go off thinking TV is going to make you famous, ask yourself:

  • Who is my audience? Exactly – age, sex, income, state of mind, buying habits, TV viewing habits, et al.
  • How many of these people will I reach with TV? In this case, how many people missing a limb will be watching the morning news and reruns of Three’s Company?
  • What is the single most meaningful point of difference that I want to articulate? (You can’t respond with “quality” or “service.”) Because if you're gonna be on TV, you should be saying something smart about your brand.
  • Is a jingle appropriate for my business, or does it seems a little absurd compared to the product or service I’m selling?
  • How much money do I have to waste?

There are better ideas for small businesses with limited marketing budgets than TV – and lots of them, like social media, emarketing and even, in the right situation, billboards. I hate billboards and still, I’d recommend them before I’d recommend TV for some advertisers.


Friday, September 25, 2009

What's Happening With Media?

A few weeks ago Nielsen released their report on media spending for the first half of 2009, with the headline referencing a 5% decline in internet ad spending. An even bigger story was about total media spending, though, as it dropped a shocking 15% compared to year ago. Down a staggering $10.3 billion! That puts in clear perspective where the carnage in media and the ad industry is coming from. It's pretty tough in that kind of context to find any kind of silver lining, when ad revenues in broadcast TV, newspapers, and magazines are all down significantly. Cable TV was actually the only media segment up for that period.

But leave it the the folks at Nielsen to find a silver lining! This week they released another analysis, this time digging deep into the detail of social media ad spending, to announce that ad spending on social media and blogging sites has more than doubled year-to-year, going from less than $50 million in August 2008 to around $108 million in August 2009.

They also published some significant consumer behavior news: according to their analysis time spent on social network and blogging sites now accounts for 17% of total time spent online, nearly triple the 6% that was reported last year!

"This growth suggests a wholesale change in the way the Internet is used," said Jon Gibs, vice president of Nielsen's online division. You can't argue with that! It says that all the hype surrounding the explosion of social media tools is starting to be matched by consumer behavior, and advertising are beginning to realize that with ad spending allocations.

While Nielsen didn't release any specific spending amounts attributed to specific sites, they did identify Facebook as the #1 social networking site advertised on by 10 of the 13 industries they measured. So while advertisers in the past have expressed concerns about the effectiveness of advertising on SM sites, this dynamic increase suggests they're getting over their concerns, and quickly! I'm sure it has plenty to do with declining audiences delivered by traditional media, as well as the ability to really connect and interact with their target via SM.

If nothing else, this should be a wake-up call to advertisers still hesitating on social networks as part of your media mix. If your consumers are spending that much more time connecting online, it's that much less time they're spending with traditional media. If you want to connect with them, you need to get them where they live.


Tuesday, September 22, 2009

Social media is a marathon, not a sprint.

Social media has made our world smaller and more efficient, and has made immediate gratification an expectation. These days it’s all about getting want you want when you want it – and “when” is usually NOW.

Smart companies are using social media to deliver immediate gratification. Time Warner Cable and Zappos.com have brought their customer service components to Twitter; news outlets post breaking news online before they print it. Retailers provide online product reviews, research and comparisons because they know consumers want to learn about and purchase the product all in the same day.

Our world has sped up so fast that we get frustrated when we have to wait. But not all results are immediate.

This morning I was at yet another social media seminar when someone noted that a local company launched social media earlier this year but, to this person’s surprise, saw decreased sales despite this move. He seemed to feel that the work the company did finding and interacting with its target audiences was a waste of time because it didn't immediately “paid off.”

Since when do advertising, public relations, branding and other marketing strategies translate directly and immediately to increased sales? Increased sales is the ultimate goal, but communicating a meaningful point of difference a consumer will understand and recall takes time and patience.

Social media is not a miracle marketing tool. People aren’t going to buy your product just because you’re engaging in social media (unless you’re Dell Outlet) – just like they aren’t going to buy your product just because they see an ad, hear a story, see a banner at an event, or because you have a great tagline.

The goal in social media is to build your reputation, increase brand awareness and engage with your audiences. Once you integrate social media into all your other marketing efforts, then you can start measuring its effect. But rather than expecting any marketing tool to immediately result in increased sales, look at these measures to know if what you’re doing is working:

  • Web site traffic
  • Followers of your blog, Twitter account, Facebook page, RSS feed, etc.
  • Traffic and comments to your blog page
  • Engagement with your target audiences on the social media channels you’re involved in – are they doing what you want them to?
  • Participation in contests, surveys and questions
  • More valuable relationships with media or target audiences
  • Insightful information about your brand, product or service that causes your company to re-evaluate customer needs

Once you can say social networking is adding value to your branding and public relations efforts, then you can begin depending on it as a component to increased sales. Success on social media is a process that requires a lot of energy, great ideas and hard work. It’s a marathon. And it all starts with understanding what it means to be successful.


Friday, September 18, 2009

Simple Steps Make Social Media Easy

My associate Abby and I gave a presentation on social media to a TEC group earlier this week, and we experienced the same kinds of questions that we usually run into with senior managers and company presidents. They know things are changing fast, some competitors might be taking steps already, they know they need to do something, and so they want to know "how do we do this?"

I applaud them for feeling the urgency. I don't think there's anyone in a leadership role today who doesn't understand the basic situation, or feel the discomfort about all the unknowns associated with social media.

So if you're someone asking your people or advisers you work with, "How do we do this?", look for answers that follow this general outline.

  1. Find your audience. Every industry or market is different. You need to understand where your customers/consumers/prospects live online, and what activities they're involved with relative to your business. Are community pages important, do they congregate in LinkedIn groups, are they Twitterholics?
  2. Understand your goals. Being there doesn't accomplish much. Are you looking to grow awareness among infrequent category users, change attitudes with the heaviest users, or grow loyalty among switchers? Knowing what you want will lead to focus when it comes to strategy.
  3. Set primary strategies. Time to decide if you're want to drive share of online voice, or if demonstrating the depth of your knowledge is what's best. Deciding to build relationships and a cadre of brand ambassadors takes you in a whole different direction. Your decisions here will start to place limits on what you actually do.
  4. Select channels/technologies/tactics. Now you're finally in the "how to" part. We usually advise clients to start as simply as possible, somewhere near the intersection of an activity level they can be committed to, and the critical mass to have enough cross channel activity for decent leverage.

As easy as 1 2 3 (and 4!).


Wednesday, September 16, 2009

The Beatles Brand Lives On

Last week was a big week for The Beatles brand. Both The Beatles edition of the interactive video game Rock Band and The Beatles’ full music catalogue in digitally re-mastered form were released. These events received a ton of press and online buzz, and undoubtedly both will be very profitable ventures.

The thing about The Beatles is that their music and brand are timeless. Even without the release of popular video games like Rock Band, their music appeals to new generations of kids who weren’t even alive when the band was at its peak. According to an article on AdAge.com this week, The Beatles ranked number one among all age groups as the most-liked musical group or artist in a list of 20 popular performers chosen by Pew Research Center in a July/August survey. For a band that hit the music scene over 40 years ago, this is no small feat and speaks volumes about The Beatles brand.

The strategy behind launching both The Beatles: Rock Band and the music catalogue on the same day is a smart way to generate sales of both – Rock Band will likely fuel sales of the music catalogue (and vice versa) because the re-mastered songs are featured in the game, and the word among critics is that the songs have a whole new dimension that grabs you like never before. Parents, and maybe grandparents, will play the game with their kids and remember how much they enjoy the music…and be inclined to drop $250 for the new re-mastered catalogue.

Decision makers behind The Beatles brand continue to make the right moves and have once again positioned the brand for stardom. I’m thrilled a new generation will be exposed to the band’s music and appreciate how they’ve shaped the sound of Rock. I don’t know about other Beatles fans out there, but The Beatles: Rock Band and the re-mastered catalogue will be on my Christmas list this year!


I Bet Lexus Is Giggling

General Motors has been using some of its bailout money attempting to resuscitate the Buick LaCrosse, rolling out a presumptuous campaign that tries to show Lexus (and us) who's who in the luxury vehicle market. One billboard shows the LaCrosse along with the headline, "Another thing for Lexus to relentlessly pursue."

You can't blame them for trying, but Buick has thrown itself in a ring where it cannot win. Lexus has over many years developed a brand that stands for superior design, exceptional performance and prestige – it's to our generation what Cadillac was to our parents'.

Buick, on the other hand, is an icon for ordinary. And dull and plodding and lumpy and some other adjectives.

The agency responsible for the new campaign assumes that simply by comparing this aging, irrelevant brand to Lexus, people will associate the two and assign Lexus-type characteristics to Buick. It'd be a good strategy if it didn't expect people to ignore strong, well-established (and poor) perceptions of the Buick brand.

Buick's brand image problem can't be remedied, at least not in this car class. Look what happened to Oldsmobile, despite the automaker telling us for years, "It's not your parents' Oldsmobile!" They were right – it was our grandparents'.


Monday, September 14, 2009

Cleverness

Leo Burnett said “…one of the greatest dangers of advertising is not that of misleading people, but that of boring them to death.” Too often, though, advertisers think the way to avoid putting the audience to sleep is to be outrageous, provocative or – worst of all – clever.

A local physician has placed a number of billboards around town, each with a headline I’m sure someone (in his family) thinks is hilarious. They’re all sort of like this:

“Back pain? We’ll have you feeling spine ‘n dandy!”

Clever is tough to do well and just because your neighbor thinks you’re pretty funny, chances are you’re not ready for the big time.

The bigger problem with clever is that too often the message is lost – or was never there to begin with. Humor isn’t an end in itself; it’s a means, and a means that’s not right for every product and service.

If it’s the approach you want to take, though, make sure:

  • It works for your product or service. Would a dermatologist’s audience be offended by cracks about bad acne, for instance?
  • It differentiates you from your competitors (in a way that’s important to your audience, not just because it’s funny)
  • You’ve passed it by people who have no vested interested in your psyche – ask someone who doesn’t mind hurting your feelings

An approach that’s outrageous, provocative or clever can be very effective. But there’s also nothing wrong with a simple, direct and benefit-based headline that answers the question, “What’s in it for me?”


Friday, September 11, 2009

Civility, Respect and American Values

During the anniversary week of 9/11 I guess I’m a little more sensitive than usual to how important it is to respect each other and embrace different ideals, even if we disagree. I’m amazed at the events of this week and how little regard we not only show each other, but even our president. I think our country is better than this.

Early this week our kids were given an opportunity to hear directly from POTUS that each of them is special and has something to offer if only they stay in school and grow into their potential. Unfortunately, very few heard that message because of fears the kids might be used for political reasons. Then, not two days later, he is called a liar in the senate chamber when speaking to the American people on live TV. I don’t care what side of the aisle the president comes from, I was raised that he and the office deserve respect as our elected leader. I have the right to agree or disagree with anyone, but I don’t have the right to be disrespectful.

If the current healthcare debate is teaching us anything, it is that nothing can possibly be accomplished by not listening or digging in our heels. In fact, that attitude just makes it worse. A little civility might just go a long way in solving some of the problems we face today personally, professionally and as a nation.

I hope as 9/11/09 approaches we can all stop for a minute and remember how the entire nation united eight years ago. For just a while, we seemed a bit kinder, a bit more thoughtful and genuinely more open to each other. We, individually, gave up a bit of our egoism and started to focus our energy outward. It would be nice if we could do that again without tragedy as the driving force.


Wednesday, September 2, 2009

Be Careful Which Guru You Choose

A quick search on Google turned up 510,000 “social media gurus” and 1,020,000 “social media experts.” Twellow returned 130 “gurus” and 229 self-proclaimed “expert” profiles. With all these gurus and experts running around, there seems to be no shortage of valuable advice about how to take advantage of social media.

Truth is, nobody is an expert – social media just hasn’t been around long enough for anyone to truly become an expert! If you believe Malcolm Gladwell's theory that it takes 10,000 hours of dedicated practice to become an expert at anything, that equates to 3.4 years at a solid 8 hours a day (no breaks!) or 6.8 years at an average of 4 hours a day. Only the very earliest forms of blogs and LinkedIn were available 6 years ago.

According to jcmc.indiana.edu, below are the launch dates of the major social network sites most “gurus” profess to have mastered. Even at 8 hours a day, nobody could be an expert at social media – we’re all still learning.

So how do you weed out the wannabes from those with real insight into social media? When looking for a group to guide you in the use of these powerful internet tools, it’s a good idea to ask how long they’ve been active on each social network site, and how they integrates those sites to get the most out of each. Take it one step further and ask to hear about integrated program successes. Being active on social media is great but if there’s nothing to show for it except a bunch of friends or followers, who cares?

You’ll also want to check the facts you’re given. Recently, a slick video was passed around the Internet that presented a host of impressive statistics related to social media, online usage, corporate recruitment activity, and the future of social media. It all seemed very credible and enlightening until the facts were checked. Unfortunately, much of the information was misrepresented or outright false. Don’t fall into the misconception that if it’s written it must be true; a lot of gossip magazines make good money on that same belief.

Finally, does the team practice what they preach? If they’re telling you all that you should be doing on social media and the fantastic results you should expect but they only have a Facebook page and a couple of weekly tweets, ask some serious questions.

One the other hand, if your social media advisors (notice I didn’t say experts?) are active, have real successes under their belt and have learned what they know by doing it firsthand, these are people worth talking to.


Tuesday, September 1, 2009

Don’t leave influential bloggers uninformed

As more and more content is created, shared, and used as news online, it's important for companies to re-evaluate their media contact lists. Today, bloggers and online editors can have just as much influence on audiences as your traditional print and broadcast media contacts.

Last month, we began working with a client in the education industry. To begin an influential media list, I did what any PR professional would do in their media contact planning process – I Googled “education news.” Top on the list of search engine results was a worldwide blog focused only on education and a link to the education section of nytimes.com.

This exercise reminded me how important it was to educate our new client about the power of online news. Although getting a fancy clipping of a print or broadcast news story is certainly important to your public relations efforts, getting those stories mentioned in online versions of newspaper/TV station Web sites, news sites or blogs can be just as (or more) influential.

In fact, according to The Pew Internet & American Life Project, nearly three-quarters of American Web users (55 percent of U.S. adults) went online to get involved in the political process or get news/information about the elections. Pew also reported that among the entire population (Internet users and non-users alike), the Internet is now equal to newspapers and roughly twice as important as radio as a source of election news and information. I’m going to go out on a limb and assume that Americans are getting much more than just election news online.

In fact, the Nieman Journalism Lab released these powerful statistics in April of this year:

1. Each of the top three news destination on the Web (MSNBC, CNN and Yahoo!News) individually each drew more than half the unique visitors of the entire newspaper industry in March 2009

2. Year-over-year, MSNBC grew 9 percent, CNN 4 percent, and Yahoo!News 16 percent

3. Yahoo!News alone gained 5.2 million uniques in March 2009, or nearly 70 percent of the gain of the entire newspaper industry

4.More than 40 percent of Americans now say they get most of their national and international news online

Not surprisingly, I found all of this information on blogs and news sites, which had worthwhile comments and discussion to follow.

The ability to view comments and discussion around a news story that features or matters to your company is an element traditional media just can’t provide. With online news coverage and blogs, not only do readers get your information, they’re able to respond to it. Good or bad – companies and organizations can receive feedback and interact or influence their readers. And with social media tools readily available, online news or blog coverage is gold to companies that are using social media to share stories and connect with target audiences.

So if you haven’t done so yet, dust off your tired old media contact list, begin adding more online editors and industry bloggers, and watch your media coverage grow.


Chat Catcher