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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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A CEO Who “Gets It.”

Tuesday, February 9th, 2010

I am very proud to announce that the recipient of the 2010 Borrell Award of Merit for “Innovator of the Year” is Colleen Brown, CEO and President of Fisher Communications.

We had a range of remarkable people to pick from.  As you can imagine, the Internet and all its apps afford a tremendous amount of creativity.  But remember that we had a litmus test for all of our awards – results, and financial viability.  We didn’t want to select someone who merely implemented a great idea or rose to their 15 minutes of fame on a groundswell of page views.  We wanted to select someone who, through some unusual feat, created something that not only caused us to say, Wow!, but also delivered sustainable value to their company.

That person is Colleen Brown.  During our opening session at our conference in New York Monday, we heard from Colleen’s vice president of interactive, Troy McGuire, that the company hit two milestones last month:  it now has more than 100 hyperlocal sites, and more importantly, surpassed a whopping 1,000 advertisers.  And they didn’t start launching those sites until August 2009.

We could have selected Troy or some of the other geniuses in the Fisher Interactive camp for this award, and they would certainly be deserving.  But frankly, we believe that it’s the CEO who creates the environment that spawns innovation, holds the bean counters at bay, and demagnetizes the interactive operations enough to allow it to grow in ways that traditional brand managers might thwart.

When you privately ask an interactive manager at a local media company to talk about the support he’s getting from the CEO, you sometimes get more expletives than accolades.   But I think this quote from Fisher’s senior vice president, Troy McGuire, says a lot.  “She’s been unflagging in her support,” he said.  “She has gone well beyond what a typical broadcast company CEO might do to ensure our success.”

What’s happening in Seattle and at other Fisher properties is counter-culture change.  And counter-culture change doesn’t happen with just lip service, or with a CEO who offers moral support and then lets the Interactive manager duke out the details.  Or when the new venture is starved of resources because the mothership is suffering a bad year.   Change may happen in the ranks, but it has to come from the top.

And at the top of this remarkable story is one remarkable CEO.  We’re very pleased to give this award to Colleen Brown.

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Our Innovator of the Year

Friday, February 5th, 2010

2010 Borrell Awards of Merit

We’ll announce our Innovator of the Year award in New York on Tuesday, and I’m sure the person who walks through the luncheon crowd to the podium will be a surprise.  One might think it would go to a Web site manager who’s done something different, or a developer who’s created an app that emits the aroma of coffee from a Droid when you’re near a Starbucks.

Uh, no.  It’s going to a chief executive at a traditional media company.  Saywhat? A stodgy, button-downed media CEO worthy of an online innovator’s award?  Don’t innovators become innovators despite executive management?

That’s exactly why we selected this year’s recipient for the 2010 Borrell Award of Merit.  Our winner has demonostrated a deep understanding of disruptive innovation, organized the company for optimum performance, and drove outstanding results.  The litmus test for all three of our Awards of Merit is financial results, not “coolness.” And the financial performance that this executive stimulated is a real head-turner.

In a column for Inside Radio last November, I plucked a few CEO’s ears for failing to even recognize the outstanding effort that their interactive directors were tackling.   Only one company — RadioOne — routinely described its online ventures in any detail.  Bonneville Broadcasting produced a snazzy 22-minute video to describe all the great things it accomplished, snubbing its online efforts with an eight-second mention.  Even TV executives spend very little time discussing online ventures in their annual reports and presentations.

By now I guess you figured I’m not going to name the person or even give any clues, but thanks for getting to the end of the blog anyway.  Suffice it to say that we’re selecting this recipient because we believe that innovation may start at the bottom, but too often gets thumb-squashed by bean-counting CEOs at the top.  This executive opened the doors wide and stimulated transformation in a way that I think Wall Street will sit up and pay attention.

We’ll post the recipient’s name on our Web site Tuesday afternoon — along with the names of three other companies who will receive awards.  But if you’d like the immediate scoop, I’ll Twitter a few minutes before the announcement.  You can pick it up at www.twitter.com/goborrell.

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