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Archive for the ‘Marketing’ Category

Read All About It: Coupons!

Monday, October 31st, 2011

Every Sunday at the grocery store I walk past a rack containing my local daily newspaper.  As I wheel my cart by, I glance at the front-page headline – something that’s supposed to scream out and say, “pick me up!”  It never happens – that is, until this weekend.

The newspaper is The Virginian-Pilot, a 170,000-circulation daily where I spent a dozen formative years as a reporter and editor.  When I was a copy editor, a colleague once told me how to write a great headline.  “Imagine a kid selling newspapers on the street, yelling out the headline.”  That bit of advice helped me win a dozen headline-writing awards.

But on this past Sunday it wasn’t the headline that grabbed me.  The front page (which looks like it was designed by committee) had two headlines:  “Ghouls Rule!” and “Our New National Park.”  Those are about as likely to get me buy the paper as the sign on the potato rack that says, “Russet potatoes.”

The headline that captured me was bigger and more colorful than anything on the front page.  It also held greater creativity and news value than anyone on the copy desk apparently had the energy to think of the night before.  The headline:  “$240 in Coupons This $unday!”

It was both sad and heartening.  Heartening because at least someone was thinking about how to sell newspapers.   Sad because it wasn’t the people responsible for making the product compelling to the community every single day.

Like many newspapers, the once-formidable brand of The Virginian-Pilot is no longer strong enough to sell newspapers on its own.  That power was lost many years ago with the proliferation of local news and information both on TV and the Internet, as well as many years of newsroom downsizing.  At this particular paper, Page 1 reflects the diminished brand of a longstanding, two-time Pulitzer-winning product:  The front-page flag is small, pushed off to the left and crowded out by things above, below and to the right of it.

The same is not true of all newspapers. Many have held fast to what they do best in print. I was in Little Rock a few weeks ago and found The Arkansas Democrat Gazette chock full of news. (This Sunday’s top headlines: “Arkansas 31, Vanderbilt 28” and “Kabul bus bombing kills 12 Americans.”)  I read the entire paper on the flight home and got a robust slice of life about what’s important to the people of Little Rock.  A few months ago I visited Colorado and found much the same with The Durango Herald, a small newspaper that remains the voice of the community.

I guess I should be glad that marketing departments can take charge and find at least something of value to help sell the paper.  After all, the same percentage of people read the advertisements in Sunday’s paper as read the news.  The Internet can’t touch the newspaper when it comes to delivering the most comprehensive package of what’s for sale in a local community on that particular day.  Try to Google that.

Things are changing, however.  Three industry efforts are pushing out newspaper circulars and other local advertising that might just usurp the daily newspaper’s stronghold on that more valuable breaking news of the day:  Where all the big sales are.  Those efforts include Gannett Co.’s ShopLocal.com, Suburban Newspapers of America’s Zip2Save.com, McClatchy Corp.’s FindnSave.com, and The Associated Press’s iCircular.com.   I’m not certain these efforts will ever replace the daily newspaper as the No. 1 source for current sales information for local markets, but they certainly hold the promise of doing so.

In this tough economy, I suppose that shelling out $1.50 on the prospect of saving $240 is as good a way to sell a newspaper as any.   At the rate things are going at some newspapers, they’d do better to fold the paper so the advertisements could become the front page.

 

 

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Will Mobile Advertising Grow Stale?

Monday, August 1st, 2011

I chuckled when reading a recent article entitled “Why the Pipes are Broken in Mobile Advertising” from that venerable industry magazine, Advertising Age.  The article cited eMarketer’s estimate that mobile ad sales were close to $1 billion and went on to quote ad agency execs bemoaning the constrictions around mobile advertising. (Borrell Associates, on the other hand, is estimating that mobile ad spending close to 10x that – perhaps because we’re closer to the actual source, local – not national – advertising.)  The article went on to quote an executive from Ogilvy who indicated that, until mobile can be bundled into really big deals by the big agencies, it will be stuck at the margins of ad spending.

It’s an interesting theory, but it doesn’t hold water. In fact, it resembles one of the recurring nuances of disruptive innovation:  When faced with a disruptive innovation in their marketplace, the leaders of incumbent industries grossly underestimate the size of the disruption.  Call it denial.  Call it the Goliath Syndrome. It happened to the vacuum tube industry when disrupted by transistors in the 1960s.  It happened to IBM when mainframe computers were disrupted by minicomputers.  And it happened to Kodak when silver halide film was disrupted by digital photography.  (Oddly enough, it happened to a lot of ad agencies who denied the viability of the World Wide Web throughout much of the last decade, paving the way for digital-focused agencies like Tribal Fusion, Razorfish and Burst Media to steal clients.)

The Ad Age blog suggests that until the Madison Avenue agencies wrap their heads around mobile, nothing much will happen. The fact is, a great deal is happening right now, but the big agencies are not observant enough to catch or notice the trend. Smaller businesses – the fabled SMBs – are leading the charge to mobile because it can fill their stores and cafes. Bigger businesses, the ones smart enough to see what’s happening, are turning the reins for mobile campaigns over to their local branches and franchisees.  Bigger things happen at the local level.

The 20th century notion of big, one-size-fits-all marketing campaigns is wilting against a tailored, locally-centric approach.  Campaigns depend more on local opportunities than on global/national planning. Advertisers that are accustomed to making their marketing decisions in the board room will have to depend more on their local management.  Some takeaways from the new world of 21st century marketing:

  • The old notion of promotions vs. advertising is dying quickly. Smaller businesses don’t recognize those boundaries. To them, anything they spend money on to bring customers in is in the same bucket, and they want definite proof that it worked before they’ll try it again.
  • Customers are busier than ever. Their mobile phones have become vital communications and transactional lifelines. They don’t want to wait until a specific time to watch their favorite shows. They want to download them and watch them when it’s convenient. They don’t want to accept a retailer’s price; they want to use mobile devices in the store to compare prices at other retailers.  They simply don’t have time to drive around from store to store anymore.
  • Coupons and deals are the watchword, and they are moving online and to mobile. Even though coupon redemptions are hitting record rates, the number of printed coupon “drops” in a market continues to fall. Their digital replacements are easier to find, store, and use.
  • Deals and other payout-guaranteed promotions may be the long-term face of local marketing.  The idea of getting a check for your marketing efforts that grows as they become more successful is very compelling.

Of course, the buyers from big agencies (and their bosses, as well) will strongly dispute each of these points.  They will talk about strategic initiatives, share of voice, imprint accumulation, and all the other terms that have stood the test of time. It won’t matter. These terms are anchors to the past. They grew and flourished in a world where people had fewer choices and advertisers fewer options.

Today’s marketers need wings, not anchors. By the time the old guard acknowledges the scope and breadth of what’s happening every day in online marketing, no one will be listening.

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Free beer…

Thursday, April 14th, 2011

Carolyn Wilkins of the NAB throws a great party. She invited me to speak on a panel at the latest NAB show in Las Vegas where I shared the dais with top interactive management from four media companies. Since the session, “Top 20 Digital Money Makers,” was scheduled in the cleanup slot at 4 p.m. she decided to do something different to lure folks away from heading back to the casinos. She found a sponsor that supplied us with beer, wine and pizza for the session. Moreover, Carolyn fulfilled her obligation successfully — she delivered a packed room and extra chairs were even brought in. It was up to me and the other four on stage to deliver the goods.

Carolyn accomplished her goal because she recognized that by the end of the day many people would be tired of dragging themselves around the vast convention center. Hungary, thirsty and just worn out was what she was competing against, but as Clay Christensen would say, “she understood the job to be done.” No amount of PowerPoint tweaking or breathy agenda prose was going to do this job. It wasn’t about how good our Top 20 would be or why broadcasters needed to hear it. It was about what people needed after seven-plus hours of jostling through a crowd of 85,000 people. Free beer and pizza fit the bill.

It’s funny, because as I listened, and contributed, to the Top 20 digital money makers over the session’s hour I realized that these successful campaigns were due the nature of these promotions to get the job done.

If you heard keynoter Clay Christensen speak on this topic at our conference last month, you know the story. How a fast food restaurant chain tried to improve sales of milkshakes that customers bought in the morning. It turns out the chain was trying to make a better milkshake when all that most customers wanted was something to hold in their hand’s and occupy their time on a boring drive in to the office. Instead of improving the product, all they needed was to add some fruit chunks to make the milkshake more interesting and place the shake machine by the door with a card swipe on it.

This is exactly how a great promotion is crafted. The nature of a promotion is to generate immediate results. If it doesn’t work at that level, you haven’t recognized the job to be done.

If you are a local media executive, do you really understand the job to be done when you conceive a promotion? Is it to increase page views? Increase site visitors? Increase opt-ins? Make the cash register sing?

Define what the expectations are and then look at the buyer’s needs not the product. Don’t look at placing products or consumers in categories; look at what drives their emotional needs. Carolyn Wilkins figured this out. And, so must a good promotions manager.

We predict that online promotions will outgrow online advertising over the next five years. That’s a lot of jobs to be done if you are going to capture your share of local marketing revenue.

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