The Decade That Transformed Media

Posted on January 7, 2010 by Paul

As we head into the second decade of the new millennium (okay, it technically doesn’t begin for another year, but stick with me), it’s worth remembering where media stood just 10 years ago.

In December, 1999, few people had heard of Google. Online advertising was banners and e-mails. Big media brands dominated the Web. US newspaper ad revenue would hit record levels in 2000. Newsroom employment would peak in 2001 as newsstand sales of the top 100 magazines approached 30 million. No one had heard of blogs. People used mobile phones to talk.

Fast forward to 2009. This year, people spent six billion minutes on Facebook, downloaded one billion YouTube videos and logged over 1.4 million blog entries every day. The iPhone became the first mobile phone to be used more for data than for voice. The Internet became the second most popular news medium behind television. Wikipedia posted its three millionth article.

Meanwhile, US newsroom employment fell to a 25-year low and magazine newsstand sales dropped to 63% of their 2001 peaks. Reader’s Digest declared bankruptcy. Comcast said it would buy NBC.

The statistics go on and on. In just 10 years, our century-old mass-market media model has given way to a new structure dominated by the economics of one. Customers now take their opinions directly to the market. Woe to organizations that don’t listen.

The contraction of mass-market media has brought plenty of pain. Tens of thousands of media professionals have lost their jobs in the past two years, crowdsourcing has sent some professional fees into a tailspin and veteran marketers are under threat if they don’t “get” social media. But this pain is necessary, even beneficial in the long run.

New Efficiency

That’s because media has historically been one of the least efficient disciplines on the planet. It’s a profession that declares success if only 97% of its audience ignores an ad or tosses the mailer into the trash. It gains one customer at the expense of annoying 50 bystanders. When department store magnate John Wanamaker said half his ad dollars were wasted, but “I don’t know which half,” he was being generous.

The new Internet has flipped the economics. As media control has passed from institutions to individuals, waste has begun to be worked out of the system. The cost of reaching a targeted customer will only decline in the years to come. Sadly, efficiency will also devastate those industries and professions that thrived on media’s historical inefficiency.

While mourning the loss of comfort and security that old media once provided, we shouldn’t get caught up looking backward. More competitive markets will bring new options for reaching customers. The marketers who survive will be those who put the past behind and move quickly to take advantage of these new efficiencies.

Let’s start the year not by mourning the losses of the last decade but by learning the skills we’ll need to survive the next.

What changes will we be looking back upon a decade from now? Post your predictions as comments.

Integrating Social Media Platforms? Let’s Talk

Posted on December 16, 2009 by Paul

Photo by Adam_T4. Click for profile.

I’m undertaking a research project to assess the value of integrated social media marketing programs to a company’s overall strategy. I have a sponsor for it (who has to remain anonymous for the moment because of an upcoming product announcement) and am seeking others.

Here’s the premise: One of the big changes we’ve seen in the social media marketing landscape over the past year is that companies are beginning to expand beyond using point social tools such as blogs and Facebook fan pages and building multiplatform programs that incorporate elements like video, podcasts, social networks, Twitter and branded customer communities. Early feedback indicates that there may be a multiplier effect that comes from integrating these programs. In other words, when you tweet your blog entries, you get better results than if you had used each platform independently of the other.

This research attempts to assess what best practices are emerging at these early stages. In my dreams, it’ll also yield some kind of formula for calculating this multiplier. There are two parts to the research:

A survey; and
One-on-one interviews.

I invite everyone who coordinates social media efforts for a business with multiple employees to take the survey by filling out the form below. It probably takes about 20 minutes to complete if you respond to the optional verbatim questions and less than 10 minutes if you don’t.

I’m also seeking marketers at medium to large companies to consent to an in-depth telephone interview of approximately 30-45 minutes’ duration. I’ll ask you to will expand upon some of the information you provide on the survey.

I’m hoping you’ll agree to go on the record for the phone interview, but I’m flexible if that’s a problem.

Please contact me by any of the means listed below if you’re interested in helping with my research, or just add a comment at the end of this post. Thank you!

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paul@gillin.com

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Message to Marketing Graduates

Posted on December 8, 2009 by Paul

Photo by Shoshanah (click for Flickr page)

I spent 90 minutes speaking to Dr. Nora Barnes’ social media marketing class at the University of Massachusetts/Dartmouth this morning. I try to speak to college classes at least four or five times a year, in part to give back something to the next generation and in part to learn more about what’s on their minds.

I asked the students – all of them senior marketing majors – the same question I always ask college classes: How many of you subscribe to a daily newspaper? The response was pretty typical: three students out of a class of 34.

Here are some of the things I told them:

Much of what you’ve learned about marketing over the last four years will be irrelevant five years from now. The field is changing too quickly. You’ve been learning about how to tell a story and position a brand, but in the future your job will be much more about listening to customers and working collaboratively on brand definition.
You should discard much of what your teachers have been telling you about the media. Traditional media is collapsing and what emerges from the rubble will look very different than the institutions we now know.
The best skills you can bring into the marketing field today are resourcefulness and curiosity. You must be willing to reinvent your skills constantly because the playing field is in a constant state of turmoil. This is very exciting for you and it’s very scary for the people you will be working for. Be sympathetic, but don’t get stuck doing things the old way.
Traditional media was built upon a foundation of inefficiency. The clothing retailer who wanted to reach the .01% of the population who want to buy a wedding gown at any given time has had to pay for the 99.9% who don’t. That’s crazy, but it’s the only way we could get a message across in the past.
The worlds of media and marketing are undergoing enormous improvements in efficiency right now. Unfortunately, efficiency is usually painful because it destroys institutions that were built upon inefficiency – institutions like newspapers and magazines. In the end, we’ll be better off, but we’re still in the ugly destruction phase right now.
In the last decade, Americans have shift from browsing to searching for information. This has huge implications for the way decisions of all kinds will be made in the future. Search engine marketing and search engine optimization should be part of any core university marketing curriculum today.
The shriveling of traditional media creates new opportunities for organizations — and that includes businesses — to fill the trust gap that’s been left behind. Businesses can become media if they so choose. Most of them haven’t accommodated themselves to that fact.
Trust is complex in the new world because we are losing our traditional trusted brands. I trust Wikipedia to tell me the date the Yalta Treaty was signed, but not necessarily to interpret the poetry of Edgar Allan Poe. Trust is also situational. We are learning to trust some sources for certain kinds of information but not for others. It will take time for us to sort this out.
Today, individuals can choose to be celebrities all by themselves. They need to have something interesting to say and the knowledge to use new channels to say it. This is very cool. We no longer have to depend on others to decide if we can be important or not
This is a great time to be a college student getting into marketing. The old guard is struggling to learn the new tools that this generation intuitively understands. Companies like Edelman are going so far as to create reverse mentoring programs in which younger employees train senior executives. This doesn’t mean you young people know it all. Be open-minded about learning from the experience of others and be generous about sharing what you know.
In the old days, the marketer’s job was to media-train a few key executives. In the future, the marketer’s job will be to media-train the entire company. This will be enormously empowering for marketers.
Marketing’s traditional role has been to talk. Its future role will be to listen. Branding and positioning will be defined as much by a company’s constituents as by its employees. If you choose simply to talk, people will choose simply not to hear you. Marketers have an unprecedented opportunity to increase their importance in the organization by becoming listeners.
Messages spread from the bottom up much faster than they spread from the top down. Cindy Gordon’s story at Universal Studios is just one example. She told seven people the news and within a couple of days, 250 million others knew.

And finally: By the time you graduate, have a LinkedIn profile. And for goodness sake, clean up your Facebook profile!

Books Worth Reading: the Trust Equation

Posted on December 6, 2009 by Paul

The stack of unread books on the nightstand has been getting pretty tall lately, so I took advantage of some recent travel and vacation time to shorten it a bit. Over the next couple of days, I’ll post of reviews of some titles I recommend. Starting with…

Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust – Chris Brogan and Julien Smith don’t need my help to sell books; they’ve already made the New York Times bestseller list and their success is well deserved. The market has been flooded with social media books this year, but Trust Agents is different because it’s more about the social than the media.

Oh, there are plenty of tech tips and tricks, which are organized conveniently into sidebars, bullet lists and “top 10” formats. What really makes this book work, though, is its unflagging devotion to a kind of social media Golden Rule: treat others the way you’d want them to treat you and the rewards will come back in time

The authors make a persuasive case that the value one derives from social media comes from using the tools to build trust, and that means giving till it hurts. It’s about answering questions, making connections, giving advice and donating time without any clear expectation of reward. Believe us, the rewards will come, the authors say.

You certainly can’t argue with their success. Brogan is an A-list blogger and Smith is a popular speaker and pioneer in online community development. If Trust Agents does nothing else, it provides a blueprint for achieving the kind of success the authors have demonstrated through the practice of listening actively, responding generously and constantly asking the audience for feedback. Take the tools out of the equation and the same tactics work offline. People who succeed are those who have the relationships and reputations to get things done for others.

The greatest shortcoming of Trust Agents – if you can call it that– is the lack of hard ROI data. The authors don’t try to calculate the return on their own time investments, perhaps because neither has ever needed to. ROI, however, has been the bugaboo of this fledgling media and the greatest excuse for executives so far choosing to do nothing. If you want numbers, read Groundswell by Li and Bernoff or Measuring Public Relationships by Paine. Both do an excellent job of assigning numbers to actions.

If you learn nothing more from this book than a few of the tricks to better leverage your own online presence, it’s well worth the price.

The Connectors: How the World’s Most Successful Businesspeople Build Relationships and Win Clients for Life – I sometimes share with audiences the story of Automatic Appliance, a local retailer and service company that has forever wrested my business from the big-box discount companies by tirelessly working to satisfy me at every opportunity. The last time I called seeking to fix a balky clothes dryer, the owner spent 15 minutes on the phone trying to help me resolve the problem myself instead of charging me $300 for a house visit. Such selfless generosity has won Automatic Appliance a customer for life.

This anecdote would fit perfectly in The Connectors, a book that echoes, in many ways, the give-to-get spirit of Trust Agents. To be honest, I almost quit reading this book by marketing entrepreneur Maribeth Kuzmeski after 50 pages because it appeared to be just another in a long line of bafflingly successful books that tell how you can succeed by believing in yourself. But there’s more to The Connectors than pop-psych pabulum. I’m glad I stuck with it.

The Connectors isn’t about connections as much as about going the extra mile to make yourself or your business exceptional. The connections the author refers to are those that create indelible impressions in the minds of those one seeks to influence. Over time, these become the basis for sustainable business relationships.

Like Trust Agents, The Connectors skirts the ROI issue and chooses to build its case through anecdotes and inspirational stories. The book includes a number of useful and downloadable self-assessment worksheets. While some of its examples have been done to death (it’s time to retire Fedex’s Fred Smith legend, inspiring as it is), Kuzmeski’s many examples of success working with individual clients are compelling. Her counsel boils down to:

Build your social skills in a way that works for you;
Focus on what you do well and use your strengths to establish a unique niche for your enterprise;
Find small ways to delight customers; and
Doggedly pursue business opportunities with generosity and goodwill until the client turns your way.

Like Trust Agents, The Connectors takes it on faith – and the author’s considerable success – that paying it forward pays back in the long run. The most compelling section for me focused on creating a personal impression with prospects that makes it impossible for them not to want to give you their business. This may involve considerable investment of time and energy, an issue the author doesn’t resolve completely, but you can’t argue with the results. In an age in which globalization makes long-term competitive advantage nearly impossible to achieve, trusted relationships may be all we have left.

A Bit of Inspired Word of Mouth

Posted on November 20, 2009 by Paul

I’m participating in the Word-Of-Mouth SuperGenius conference that’s being run in Chicago next month by Andy Sernovitz and his crew at GasPedal. It’s been a kick to watch the organizers drink their own Kool-Aid whilst promoting the event. The buttons, banners and custom discount code were nice, but the T-shirt that arrived in the mail yesterday was truly inspired. Talk about one-to-one marketing!

Despite the fact that I look terrible in yellow and the garment accentuates my developing paunch, I’ll be sharing it with others. Like I’m doing now.

Brand Marketing Due for a Makeover

Posted on October 28, 2009 by Paul

Luckies As corporate marketers dive headlong into the annual ordeal known as the annual budgeting cycle, Forrester Research has released an interesting new report that challenges some assumptions about brand management. It costs $499, so see if you can borrow a copy from a friend. This summary will give you the high points.

The October 9 report is entitled “Adaptive Brand Marketing,” but that’s really a fancy term for “turn on a dime marketing.” Author Lisa Bradner attacks several traditional assumptions about brand marketing. They include the notion that any individual can orchestrate all of the channels needed to deliver message, the primacy of channels over customers and the belief that just a few core messages are sufficient to communicate value.

Those simple concepts are becoming almost quaint today as channels of communication are fragmenting, customers are self organizing into affinity groups and the cost of switching continues to decline. Customers increasingly want direct contact with and influence upon the products they use. They are no longer satisfied to be spoken to as a mass; they want messages that address their individual needs. If they don’t get this, Bradner explains, they’re quick to take their business elsewhere. She quotes Forrester research showing that for consumer packaged goods, more than 80% of consumers now indicate a willingness to switch from their regular brand of product to a private-label alternative. The recession is no doubt pushing that trend along.

Start With the Customer

“Adaptive Brand marketing starts with the environment — customers and a deep understanding of their needs and behaviors — and then designs the most appropriate channel mix for engagement,” she writes in a sentence that nicely sums up the thrust of this research. “Spending and planning decisions are daily — not annual — events.”

As a longtime media professional, I found that last comment particularly meaningful. The end of the year is typically a time when media salespeople go into overdrive trying to get their events, supplements and special projects on their clients’ advertising schedules. This sometimes means trying to convince somebody in November that they should spend money on a marketing program that won’t run until the following September. The idea that anyone can predict their needs that far in advance was always a little silly. Today it’s downright ludicrous.

The Forrester report proposes a new model for brand marketing that embodies an iterative approach to planning. Frequent testing guides message development and the best ideas are funded almost instantly. It also suggests that analytics based upon the massive amount of data we can now collect about customers’ online behavior should guide tactics, not hunches and experience. In fact, the report is critical of the whole idea that past experience counts for much of anything. Rapid shifts in behavior driven by constant customer conversation have created an environment that changes too quickly.

Bradner concludes that the four P’s of brand management (product, price, promotion, place) will be replaced by four new Ps: permission, proximity, perception and participation. In a nutshell, this means that brand marketers will need to request permission to speak to their customers, listen and respond with customized messages and invite customers to collaborate on product evolution. She also suggests that the term “brand manager” is outmoded because no individual can coordinate all the necessary market conversations. She argues instead for brand advocates who live close to their markets and constantly experiment with new messages.

The timing of the research was a bit ironic coming, coming out the week after a PRWeek and MS&L survey reported that 70% of marketers say they have never made a change to their products or marketing campaigns based on consumer feedback on social media sites. Perhaps this is because we’re still early in the evolution of these new media, but with blogging now well into its fifth year of hyper growth, it seems odd that marketing pros should be taking so long to get the message.

I came upon this research in the course of an ongoing discussion with a household-name consumer goods company with which I work. The marketers there were quite taken with its conclusions, and this is the type of company that leads entire markets in new directions. We shouldn’t underestimate the scope of change that Adaptive Brand Marketing would require. On the plus side, we wouldn’t spend each November frantically assembling annual marketing budgets. But we would have to learn to live in a world of nearly constant change in plans and priorities. Welcome to the new reality of 21st century business.

E-mail Do’s and Don’ts

Posted on October 7, 2009 by Paul

As I write this essay, the founder of Email Data Source is telling the audience at the Inbound Marketing Summit, that email marketing has a return on investment of 44:1. I believe that, and Bill McCloskey’s words remind me that it’s been a while since I sang the praises of this venerable but highly useful marketing tool.

E-mail should be central to your online marketing plan. It’s how you turn casual passersby into steady customers. It gives you permission on a regular basis to contact your constituents. It’s your best tool for driving website traffic and business results.

As a practitioner of e-mail marketing going back nearly a decade, I’ve learned a few simple do’s and don’ts. Fortunately, there aren’t a lot of rules. The most important ones are to be useful and to respect the access that your subscribers have granted you.

Do give visitors to your websites every chance to subscribe to your e-mails. Put a signup form on every page. If you can manage it, squeeze a promo into your e-mail signature. Remember, a Web contact is casual but an e-mail subscription is a relationship.

Do give your subscribers special treatment. Offer them exclusive offers and discounts. Some software companies now give newsletter publishers free promotional licenses to products that are one release out of date. Look for these offers and ask if you can adapt them for your subscribers.

Do use an e-mail service provider. I use iContact, but there are many others, including Constant Contact, Benchmark Email and Lyris. There are even free options. For a nominal cost, you’ll get reporting, tracking and list management you’d never be able to duplicate yourself.

Don’t deceive your subscribers. If you tell them they’re signing up for a newsletter, don’t send them promotional messages. If you say you won’t contact them more than once a month, then don’t do that. Monitor your unsubscribes. If a lot of people are leaving, they’re trying to tell you something.

Do provide a Web version of your newsletter. Mine is here. This makes it easy for people to share your content on social bookmarking sites, Twitter and Facebook. It also makes you discoverable by search engines. Finally, it’s a way for people to respond to you.

Which reminds me: do invite response to that Web version you just created. Email is boring when it’s one way. Start a discussion.

Do sweat the subject line. Make it provocative or intriguing. However, don’t mislead people into opening the newsletter if you can’t deliver the goods.

Do keep messages brief and varied. Provide several “points of entry” to engage your audience’s different interests. Have fun. The most well-read item in my newsletter is the short “Just for Fun” blurb at the end. Do you think I don’t know that?

Do provide alternative delivery in text format. All service providers support this option. Not all subscribers prefer HTML and they shouldn’t have it forced on them.

Don’t add subscribers without their permission. There’s nothing wrong with renting an opt-in list, but scraping addresses off websites or borrowing other people’s lists can get you in legal trouble.

Don’t underestimate the value of e-mail marketing. This newsletter consumes three to four hours of my time every week. I wouldn’t do it if I didn’t think it was important.

Tweet Your Way to Luxury

Posted on September 30, 2009 by Paul

The Desert Springs JW Marriott Resort & Spa, in Palm Desert, Calif. has a clever Twitter-based promotion starting tomorrow. They call it “Tweet to Retreat,” and it requires followers on Twitter to answer a daily question about the resort to be entered in a drawing for a luxury three-day getaway package.

You don’t have to be a hotel guest to enter. All answers can be found on the resort website. Questions range “from the ingredients in the Angel Kiss cocktail at Oasis Bar & Grille (hint, hint), to the number of rooms at the hotel,” the press release says. Not sure what the (hint, hint) is all about. The release on the website also mysteriously leaves out the detail that you can find answers to the questions elsewhere on the site. That information was only contained in the release sent by e-mail.

Anyway, the hotel has only 280 followers as of this morning, so your chances should be pretty good if you make it a point to check out the daily questions. The prize: “A three-night stay at the resort, including: dinner at Ristorante Tuscany and Mikado Japanese Steakhouse, daily breakfast at LakeView, four 60-minute spa treatments, a VIP table at Costas nightclub, and a choice of tennis or golf lessons for two.” I’m there!

A New Media Book That’s Actually Fun to Read

Posted on September 15, 2009 by Paul

I start lots of books about new media, but I finish very few of them. My ADD is only part of the reason. I often find that authors don’t have much to say beyond a few points that are stated clearly in the first 100 pages or so and repeated for the remaining 200.

Not so with The Chaos Scenario, the new volume by veteran advertising critic Bob Garfield. I devoured this book and was sorry to see it end. One reason: It is so much fun to read.

Garfield is a gifted writer and he’s funny as hell. Of the video for OK Go’s YouTube hit “Here It Goes Again,” he writes, “Everyone on earth has seen the video at least four times, except for certain remote areas in the mountains of Papua New Guinea, where several tribesmen had seen only twice.” Or “If it were Japanese steel Google was flooding the market with, instead of kitten videos, it would be called dumping.”

Such asides are garnish on a viciously insightful treatise on the death of advertising by someone who has the street cred to make that judgment. Garfield’s quarter century of experience qualifies him to say when media is badly broken, which he clearly believes it is.

In an opening chapter entitled “The Death of Everything,” he documents the implosion of mainstream media channels of every kind under the weight of new-media competition and changing audience behavior. If your CEO still insists on throwing away money on TV ads, put this chapter in front of him.

Listenomics

Much of the book outlines the principles of “Listenomics,” or the premise that institutions that fail to listen to and engage with their newly empowered customers will die. The power that now exists in the hands of ordinary citizens can humble even the most arrogant corporate giants.

Among the examples of this Garfield cites is a grassroots campaign called “Comcast Must Die” which he and a core of frustrated cable subscribers mounted in 2007. Through blogs and message boards, an angry mob of customers turned the tables on a giant utility, forcing meaningful change across its vast customer service operation. As besieged Senior VP Rick Germano ultimately admits, “I’m crying ‘uncle’ now.’”

Bob Garfield

Garfield believes in the power of the crowd but not necessarily in its wisdom. Chapter 9 (“Off, Off, Off Madison”) presents a scathing indictment of consumer-generated advertising (CGA), which Garfield characterizes as mostly a dull imitation of what non-professionals believe advertising should be.

“Most CGA has been the stuff of tiny little talents with tiny little budgets pursuing tiny little ideas,” he writes. Which is not to say that pitting crowds against each other is always a bad thing, as long as the crowds know what they’re doing. Garfield praises CrowdSPRING, a competitive foundry for design professionals that created dozens of choices for the book’s logo for just $500.

The power of the crowd is not so much to create advertising as it is to keep institutions honest, he asserts. In that respect, the balance of power has completely changed. “Never pick a fight with someone who buys zeros and ones by the barrel,” he writes at the close of the Comcast chapter, “which, nowadays, is everyone.”

Time to Lego

The story of Lego Mindstorms is a vivid example of Listenomics at work. The staid Danish company allowed customers to take an active role in turning a marginal product into a global geek megahit. Customers paid their own way to come to Denmark and help Lego build a more profitable business. Crowds are at their best when they help guide brands they like, Garfield asserts, but rarely when they build the products themselves. Brands like Dell Computer and Procter & Gamble are now embracing this idea of customer involvement with a vengeance through initiatives like Dell IdeaStorm and Innocentive.

The book closes on a somber note, distinguishing itself from the relentlessly upbeat message of many marketing titles. In a chapter entitled “Nobody Is Safe from Everybody” Garfield recites chapter and verse of people whose careers and even lives have been ruined by character assassination, “trolling,” and the sometimes devastating choices of search engines.

In a world in which less and less information is private, ordinary citizens are increasingly vulnerable to the whims of a malicious few whose vendettas may be artificially magnified by unknown algorithms. “You have very little to fear from 1984, but every reason to quake about Lord of the Flies,” he writes.

In the final analysis, this clarity is one of the book’s most endearing traits. Garfield isn’t afraid to piss off his critics or to make fun of himself. He also doesn’t hesitate to point out that information democratization is hardly a win-win proposition. It is inevitable though, which is why marketers would do well to heed his well-reasoned advice. “Why, all of a sudden, is it so important to listen?” He asks in the first chapter “Because hardly anyone anymore is listening to you.”

paulgillin.com

Social Media and the Open Enterprise

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