Digital Marketing

    Leadership. Digital and otherwise.

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    I often think about leadership.  Understanding how to lead is a marketing fundamental. A life fundamental. Impressionable junior high schoolers watch what the cool kid wears hoping to be led.  Plains Indians of yore, thinking about wintering destinations, follow the chief not the warrior. And to whom do patients with a rare forms of cancer turn when looking for the right doctor and hospital?  A health portal that makes money selling ads, or a doc with humility who takes the time to explain, educate and engender trust?

    All forms and flavors of leadership.

    Leadership in marketing, trending wise, lies with the “media socialists.” Those who can build Facebook pages. The builders of mobile promotions who use words like “create a Google API that drags content into the site.”  We are all smitten with these pop marketing tactics. They are way less expensive than a page in People Magazine, and can live for months. But folks, many hawking social media and digital media solutions are not leaders. The top 5% may be are, but there are not enough to go around. When the biggest social effort of the last two years is a body wash campaign that has earned more talk than sales receipts, you know we’re pressing. (And please know, I loves me some social media. It is transformational. Just often mishandled.)

    As marketers reach out to agency partners and prospective employees, please ask them to talk about digital leadership. What are their firsts? Their onlys? Their big wins…and big losses?  Anyone can win a battle but only those with demonstrated strategic chops can lead into the future. And isn’t that where we’re headed? Peace!

    I Smell a Twitter Revolution.

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    Twitter’s soon-to-be-launched service @earlybird will transform marketing. @earlybird is a promotional service that posts participating companies’ specials and deals on a wide variety of products and services — a cut of each sale going to Twitter. It will generate billions in incremental sales for sponsoring companies and serious revenue basis points for Twitter. Such a deal!   

    No doubt they will find a way to organize these deals by category, e.g., restaurants, technology, consumer packaged goods and, more importantly, geography.  Think of it as  Woot.com but offering thousands of deals a day.  Someone commented about the service in The New York Times, thinking that it would gum up their twitter feed — deals flying across the screen every minute, but the beauty of Twitter is that you don’t have to follow @earlybird (I hope) you just have to visit the tweet stream. 

    Twitter will transform commerce well beyond coupons and customer service. And this 140 character promotional vehicle is just the beginning. The idea to have an idea.  I can smell marketers lining up. And small local businesses?  They’ll have an absolute  field day with this thing.  Oh the possibilities. Can’t wait. Peace!

    JWT. Digital as R&D.

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    In a Forbes interview with David Eastman, CEO, JWT North America, he speaks of his shop’s unique place in history. Of course, some of it was the same old/same old, which made sense for the audience, but what really stuck out was JWT’s commitment to integrating digital into its offering.  Mr. Eastman may be the first digital officer to CEO a major holding company ad shop.

    For a big global shop like JWT, digital is really the R&D department. R&D never really existed at agencies before.  Sure, there were innovations think tanks and media kitchens but those were mostly window dressing.  Eastman believes R&D is an investment not an expense and because JWT hangs with major consumer brands and has a strong brand planning culture, everyone gets the value of a powerful brand idea and everyone gets a seat at the table. This R&D department isn’t off campus in a lab somewhere. Even creatives are open to the manifest destiny love (ish).

    So what does this mean?  The outputs are better.  The ads are informed by digital insights, the didge is coddled by emotional consumer brand ideas, and the media intersects at just the right moment. The work doesn’t feel like work to many consumers, it feels welcome and softly influential. “Soft influence.” Hmm, I like that.

    Sometime the approach is a little sloppy, sometimes it’s quite elegant, but it’s almost always goaled (as they say) on being brand-strategic.  In this tactics-palooza marketing world, a holding company shop with a transmedia team working with the wind at its back offers a superior product.  But you knew that. Peace!

    How Stuff Works Online.

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    Here’s how retail works.  You build, lease or buy a store, fill it with stuff, promote it and people come and buy its wares.  Or they don’t.

    Here’s how TV works.  You build, lease or buy a program, fill it with entertaining or informational stuff, promote it and people come. Or they don’t.

    Here’s how the web works. You build, lease or buy a site, fill it with stuff, promote it and people come and buy its wares…if you happen to be selling anything.  Sometimes the web is used to help people decide if they want to buy your stuff, because it’s sold elsewhere.  And other times the web is about entertaining visitors encouraging them to come back so ad revenue allows the site owner to buy stuff.  And sometimes still, a website is created to just simply to impart knowledge, altruism and community. 

    That’s the thing about the web — visitors don’t always know if they are on a site to be sold, entertained or informed. Sometimes the builders of websites don’t seem to know either.  And when that happens the sites tend to provide a little bit of each.  And a little bit of each often leads to a lot of none. Fruit cocktail. Tricky stuff.  Focus is your friend.

    Smartphone Apps Flowing Like Mothers Milk.

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    Milk Monitor is an application available from the AppStore. It allows iPhone (and possibly iPad) toting moms to tap and record their babies milk consumption. The data can be stored, reviewed and trended at a later date.  Apparently moms like to do this kind of stuff – typically using bits of paper and napkins when recording on the road.  If you have a baby on your shoulder tapping is better than typing.  If you are carrying a smartphone around anyway and recording this data helps – especially for fussy babies — this is a great application. Go iPhone!  Go app developer!

    Application development at the smartphone level is like life on another planet.  There are currently 80 trillion apps (JK) for the iPhone today and about 6,000 for the PC (please don’t retweet, I didn’t count).  Now most iPhone apps don’t get used, but that’s not the point.  Some may. Some may help. Some will even save lives. And that’s cool.

    Just as Twitter will open new doors for smart marketers, smartphones and their apps will open new rooms for marketers.  The application developers who think like people first and coders second are the ones who will win.  

    The developer of Milk Monitor deserves congratulations two times: one for the app, one for the new bouncing baby she’s feeding. Peace!

    Datapalooza.

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    Yesterday, I was on a panel at OMMA Performance in NYC called “The dream of the Digital Dashboard.”  (OMMA stands for Online Media Marketing and Advertising.) The program, curated by Cory Treffiletti — president of Catalyst S+F, a great digital strategy shop — was quite good. (One of the speakers was from Tynt.com, check it out.)

    On my panel I mentioned that tactics-palooza has created the need for dashboards and one of my panel mates, Marc Kiven, repurposed the sound bite into datapalooza, which had some serious ballast with the audience.  Nice ear Marc. (Sorry, had to say that.)

    Datapalooza reminded me of a meeting I attended a while ago in which someone from AT&T network management said “We need to collect all this performance data, then do something smart with it.”  It’s a word string, I never forgot. Today digital marketers are so covered in data it has become harder and harder to do something smart.  One reason is interoperability.  Most reports capture time on site, links clicked, referrals, browser type, geography, device, bounce, last page visited — times a hundred. And even though we’re in the age of open standards I sense many of these data points remain in unique software homes…not portable to other behavioral data sources and feeds.

    This interoperability issue reminds me of voice mail.  Have you ever moved from one job to another and had to learn new voice mail prompts?  What a pain.  If we are to improve the performance of digital performance, the industry needs to think about some basic standards. Perhaps that will transform datapalooza into a more sonorous environment.  Peace!

    ROI and a Field of Weeds!

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    People sometimes jokingly ask me “What is the idea? referring to the name of my consultancy. My answer, borrowed from Sergio Zyman of the Zyman Group, is “sell more, to more, more often, at higher margins.”  That’s the ultimate goal of marketing, no? The quadruple crown.  Interestingly, unit sales, market penetration, per capita consumption, and higher margins are different measures. Linked, yes, but different.

    When writing a marketing plan I typically start out with an exercise called The 24 Questions.  It’s traditional marketing, follow-the-money kind of stuff. Who’s buying? When? Who is involved in the decision? Most profitable customers? Margins? Channels?, etc. Once I get the money part of the equation I delve into brand questions — from the points of view of management, employees and customers. Some of the questions are designed to get to the truth and bypass the drama and ass-covering.

    Prioritization.

    The hard work is in ranking the business objectives. Most of my decks (PPT presentations of findings) array a healthy number of business objectives. Prioritizing objectives leads to prioritized strategies which require someone at the company to put one objective at the top: “On a sinking boat which child would you save?” kind of question. These decisions are the provenance of the brain not the algorithm.  

    ROS

    ROS (return on strategy) is a metric that measures business and marketing strategy. ROI, on the other hand, ties marketing tactics to dollar return.  Not to minimize tactics, but you can buy a tactic from any marcom agency on the street. And thanks to the web – the greatest marketing tool since paper money – we’re in the midst of something I call Tactics-palooza.  ROS allows you to measure business objectives through a strategic lens. ROS is the way to go. Think of it as a crop-producing farm next to a field of healthy weeds. Peace!

    The Digital Triangle. The Perfect Start-up Womb.

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    The digital triangle, located in NYC, bears three distinct corners.  DUMBO in Brooklyn. SOHO in Manhattan. Union Square, also in Manhattan.

    DUMBO is where the coders are.  A youthful tech workforce who live digitally-centric lives, they are smart and have engineer-friendly minds. (A lot of gamer consoles burn out in DUMBO.) It’s a little men and boy heavy.  Union Square is where the money is.  Where the incubators are.  It’s where the DUMBO denizens with entrepreneurial spirit visit with their hands out.  It’s close to NYU and also has a lovely, youthful energy. Parking is expensive in Union Square but the smart money walks the streets.  SOHO is what makes the digital triangle different.  It is where designers, the truly creative and exceptionally beautiful like to call home. They don’t live there really, just work, shop and hang. If you can’t get inspired in SOHO with all its art, nubes, soft tacos, fashion, and vibe, you can’t get inspired.  All these neighborhoods are a subway or bike ride apart and feed off of each other. It is a perfect storm for start-ups.  

    Unlike Sand Hill Road (money), its surrounding neighborhoods of Menlo Park, Palo Alto, etc. (tech engineers) and San Francisco (ad people) the Digital Triangle is close but not really connected. The west coast likes campuses. It works but not like the digital triangle. As technology’s pull increases and more and more of the economy is tied to digital commerce, NYC will grow in importance globally and will become a tech capital with no peer. Just ask Fred Wilson. Peace.

    Alice in a Wondrous Land.

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    Alice is the coolest internet app around.  It’s a website that allows consumers to buy directly from the manufacturer…with a promise of low, low prices because the products aren’t inflated by retail shelf stocking fees and other costs associated with driving traffic to retail.  

    They promise one box, though how that can be with purchases coming straight from the manufacturer is beyond me.  Alice also offers free shipping, a product planner allowing users to restock based on past purchase dates, and a drag-and-drop interface even a caveman would love. 

    Though I haven’t done the deep dive on Alice, it is the future. It won’t cover fresh produce but that’s not too far down the road, no doubt available from a web start-up run by a smart farm consortium. Alice is taking baby steps which is the way to go. (I was in a meeting with a major packaged goods company and all of its agencies last week and only a handful had even heard of Alice.)  This is how we  — especially the next gen — will shop for staples.  Alice reminds me of a post I wrote a couple of years ago suggesting that the size of home mail boxes will grow significantly as web commerce develops.  Alice may not be the Amazon of its time, but if it gets the usability and customer delivery right it will be the template for the world’s biggest app. Peace!

    Digital Media Off the Rate Card.

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    David Carr published an interesting piece in today’s New York Times about Nick Denton, his Gawker Media tech blog Gizmodo, and the lost next gen iPhone.  According to Carr, the blog post generated 3.6 million hits on Gizmodo – a site averaging 90,000 hits a day. 

     (Not too long ago, during the tough economy, Mr. Denton decided to pay his staff of writers based upon hits.  The more papers you sell, said the crusty old news man, the more money you make. When the pay-per-readers story hit the wire, Mr. Denton was vilified and some good writers left. Buh-bye, said he.)

    The writer who broke the lost iPhone story was well paid for her/his day’s work and Gizmodo’s brand made it to Ohf-rah (Oprah). Eastman Kodak, who serendipitously bought all the ads on Gizmodo for the day, reaped mad dividends in terms of reach. (What’s the opposite of “make good?”) 

    Mr. Denton’s maligned approach to paying writers for audience portends things to come in social media.  Media will be bought based on eyeballs.  And media will be bought based on transactions. When this equation makes it to traditional ad agencies you may even find the creative output changing. That is, some of the ads won’t be built for portfolios but for consumer interest and traffic. Social media will soon be monetized based upon consumer interest and sales, not the rate card. And it will be exciting to watch. Peace!