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Archive for the ‘Marketing’ Category

Can Social Media Networks Deliver?

Tuesday, November 23rd, 2010

Can social media networks save your business or your advertisers’ business? The short answer is, no, not on its own.

In order for advertising to motivate an action it is dependent on the level of acceptance granted by the consumer to the medium reaching out to them. And that acceptance varies greatly across the social and demographic strata. What works for communicating with the comic book aficionado may not be suitable for the casual follower of a research firm. Social networks are effective at increasing participation -— by lessening the level of motivation that participation requires. In other words, you can “like” a cause or a firm, and share that with others, but it does not necessarily translate into true action. That action commitment is best achieved by constant outreach to the core clientele through a variety of methods that derive from a central point, or voice.

Email is perhaps the most effective at achieving consumer action because it requires commitment, and Facebook Savesmotivation, on the part of the recipient — they must opt-in for a stated reason or proposition, they must open and read the email and then the consumer must make a decision of how to dispose of it, retain it or take action. Unlike a social network, what matters most is not the size of the list but the “interest level” of the list. It is a fact, increasing an email list does not provide better reach, or even increase action results, because it requires more generalization and by nature this will dilute the commitment-level as the motivators multiply to seek the average. Commonality diminishes in such an environment. To say “we need to double our mailing list” misses the point of effective email. Lists built on narrow and distinct interests, or “rallying points,” are more successful, returning higher open and action rates. The more smaller lists you have, the more effective each will be in motivating a desired effect.

The occasional tweet can be an action motivator but too often it is seen as an intrusion to receive a beeping or chiming “must-see” message that is little more than a marketing gambit. Social networks are limited in their reach because they are not true participation motivators. And often, early adapters and innovators try to cram every stray fact and experience into the new model to ascertain that the new medium destroys the old without looking at the complimentary and distinct behaviors that can lead to a symbiotic marketing approach. Thus the glut of social network success stories (often sans ROI detail).

There is no silver bullet in marketing. It requires a deep understanding of the target customer and the ways that they interact with media in order to leverage the most impact. This is a moving target as new media springs up every few years and the ways people consume and communicate change rapidly. No one approach is valid — it requires experimentation, fine-tuning and an understanding of the unique characteristics and motivators of each medium and how they work in a dynamic integrated fashion to achieve a marketing objective.

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5 Things To Do Now

Thursday, September 30th, 2010

We ended our 2010 Local Mobile Advertising Conference last week with “Five things to do next” for those trying to tackle the mobile space. Prior to compiling the list, Colby Atwood, Pete Conti and I conferred around a baby grand piano in the hotel lobby and quickly came to agreement. One of them is watching a must-see video.

As media analysts we struggle to make our advice practical.  As I’ve said before, we have the easy job:  We say smart things, then go home, leaving our clients with the difficult task of implementing everything. We try to remember that.  But we don’t buy into the vogue ideas of “convergence” and ”multiplatform” opportunities that other consulting firms and many of our clients seem to be embracing.  Many of the recommendations swirl around Clark Gilbert’s keynote presentation, which generated a lot of buzz.  You could see an immediate uptick in the Twittering via hashtag #bamobi when he started speaking last week about separate — not converged — staffing.

With that need to offer actionable advice squarely in mind, here’s what we’re recommending to those eager to win in the mobile advertising space:

1.  Become a fervent evangelist within your company. To assist you, we are making the most dynamic presentation of the conference available on video to everyone. It’s the presentation by Clark Gilbert, CEO of Deseret Media.  We want you to show it to the top people in your company.  We don’t want you to forward the link.  We want you to show this in-person in a 90-minute meeting with your CEO, chairman, board of directors, publishers, GMs, CFOs or anyone who is an executive decisionmaker.  If you wish — and if our schedule permits, one of us will make ourselves available via live conference call afterwards to discuss the implications. No charge. Yes, we think it’s THAT important to the media industry.  Clark’s presentation was nothing short of stunning.  We want you to get the boss’s undivided attention. If you need fodder to sell the concept, just tell them that a Harvard Business School professor-turned-local-media-CEO believes that 9% of media companies will survive in the next decade, and that this video describes how to ensure that your company might be one of them.

2.  Think about your career/consider finding another job. Pound the desk for more staffing and expenses for mobile initiatives in 2010.  This is your chance to lead your company.  No one doubts that mobile will be a huge opportunity in the coming years, so hitch your wagon to that star.  If your company doesn’t “get it” or turns your down, consider leaving. It is highly likely that you’re in a dead-end career if your company doesn’t see the opportunity through your eyes.  Maybe it’s you.  Maybe it’s them.  If it were 1910 and you were working for a blacksmith who didn’t believe automobiles would overtake horses, I don’t think your career would fare well staying around to convince the blacksmith.

3. Fix your organizational structure. Colby Atwood believes (and we all agree) that you can’t allow your legacy media folks to control what you’re doing with mobile. They see the opportunity through a legacy-media lens and will apply values and standards that are good for their legacy media jobs, but not for the new mobile environment.  Who reports to whom?  We don’t believe you will grow as fast as you can if mobile opportunities are determined or heavily influences by people other than those who are squarely focused on mobile opportunities.  You need people you can fire if they don’t meet your mobile advertising goals.  Here’s the litmus test: Would your sales manager fire a rep if he made 200% of his radio, yellow pages, TV or newspaper budget last quarter but 0% of his mobile advertising budget?  If the legacy media people are in charge, they’ll be sending that rep to Cancun. But if your company were serious about the mobile space, that rep would be fired — or at least penalized.  Convergence sales are fine, but they won’t get you where you need to be.  I’ve said it before and I’ll say it again and again and again:  You won’t get anywhere until you have people you can fire for not meeting their online/mobile goals.

4.  Invest in database marketing. Pete Conti, our guerrilla marketing genius, is the most fervent advocate of this. Hire a database marketing manager or staff if you don’t have them in place already.  Your tech guy isn’t the one.  Your whipsmart marketing manager probably isn’t the one.  The person needs to know about databases, how to segment lists, and how to deliver targeted advertising to individuals.  Walter Hussman, publisher of the Arkansas Democrat Gazette, stopped by the hotel to have lunch with us and stunned all of us by talking about the need for “mass media” to migrate to a “one-to-one” delivery model for advertising.  He wants to deliver advertising on mobile devices to individuals based on their Claritas profiles, not based on what they happen to be reading.  That can’t be accomplished without a database marketing person.  Hire one.  Or two.

5.  Optimize everything for mobile. If our projections are true, nearly two-thirds of all online advertising will be viewed on a mobile device – whether it’s an ipad, laptop, or smartphone. All websites should be mobile-ready right now. Prep all your classifieds, video, basic HTML, photos, animations, etc. for mobile delivery. Examine the opportunity for App-delivered content, but it seems likely that mobile browsers will continue to be used very heavily as people try to access the current web on their small screens.  If your site is difficult to navigate or see, it’s the equivalent of downtown retailers failing to anticipate the massive movement to the suburbs in the 1950s and 1960s, and falling victim to strip malls.

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Follow the Money

Monday, September 20th, 2010

I seem to find the most clarity when confusion reaches its greatest depths.

It occurred just last week while I was sitting on stage in the Time-Life building, participating in a panel discussing the “future digital landscape” for TV stations. The session was interesting, but I noticed a lot of blank stares as I listened to fellow panellists talk about things like addressable set-top boxes, managing loads of data, the fate of local news broadcasts, and mobile DTV.

Toward the end, we were all asked a final question:  What’s your advice to local broadcasters preparing for 2011?

My response was pretty simple:  Stations are tackling too many opportunities with too few resources.  Cut opportunities and add staff.

The opportunity issue is a big one, but easily solved by adopting a simple mantra:  follow the money.   Half the things being pursued by local media companies has no hope of ever paying for what it costs to implement.  Every opportunity should have a return on investment.  Asking for an ROI will kill three-fourths of the opportunities, and you’ll be better off for it.

An example I gave was KSL-TV and its parent company Deseret Media in Salt Lake City.  Clark Gilbert, a former Harvard and Brigham Young professor, left the academic world last spring to take over as CEO.  Armed with more than a decade of trying to tell media companies how they need to prepare for the digital disruption, he started acting immediately.

He assembled one of the largest digital staffs of any local media company.  Which TV station do you know of that has about 30 digital employees?   Then he bought a mobile “deals” site, then he reorganized The Deseret News, laying off approximately 40% of the news staff.

All of this sounds pretty dramatic – and you can certainly hear more from Clark when he keynotes our mobile conference next week in Dallas.   But it would still be academic if it were not for the results he’s already seeing.

When it comes to web revenues, the largest-grossing TV station brought in about $7 million last year.   KSL-TV will beat that by far this year.

When it comes to traffic, the average local media site hold a 20% or 30% share of the Internet audience at best.  KSL.com has a 62% share. (Prior to my panel, I visited The Media Audit booth in the lobby and asked Phil Beswick to look up the KSL number.  “Whoah!” was his response when he saw the KSL results. “I’ve never seen that!”)

One more thing to note.  At a time when most media companies are just experimenting with mobile, Deseret Media’s mobile site already claims the No. 4 spot in terms of Internet traffic and, according to Clark Gilbert, is closing in fast on Nos. 2 and No. 3.

The most resounding advice I can offer is to follow the money.  Too many media companies are chasing everything they read about and wind up drowning in opportunities.

The best opportunity filter might just boil down to five words: “What’s the ROI for that?”

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