Brett Knobloch: 21st Century View

Increase banner ad effectiveness by 285%

2011-10-14T09:52:00.000-05:00

We've recommended pairing landing pages with banner ads in our MarCom systems for our clients, but now we have solid evidence to support that hunch. A recent Marketing Experiments webinar explored this topic and reported a 285% increase in effectiveness when testing this.

Why? Consumers don't experience as much "mental friction" when things flow smoothly from the banner to the landing page. The expectation of the click is fulfilled. There is less confusion. Even a split second of hesitation costs you.

Now imagine leaving this decision up to a local dealer that is spending your co-op dollars. Will your system offer a fool-proof method for executing this best practice? The solution is simple: Your Ad Builder or Marketing Resource Management software needs to offer banner ads paired with matching landing pages for your dealers.

Clearly leaving the choice up to a dealer isn't as effective as controlling this vital element in your system. Make your co-op funds stretch farther, be more effective and help your dealer execute an great campaign that sells more units for you. It's a win-win.

More restructuring in the Yellow Pages industry this month

2011-04-25T14:07:00.002-05:00

This month the earth shook in the Yellow pages industry. This seems like old news as we've been talking about the dramatic decline in printed yellow page usage and the surge in online local search, but the fact that these two events occured in April 2011 is striking.

April came in with a bang with the news that TMP Directional Marketing was closing up shop. This was a big deal and sudden by their own admission. See the news to clients letter posted on their website.

"We know this is all happening very quickly and wish we could have provided you with more notice. Unfortunately, an unforeseeable perfect storm of events has hit our company. Industrywide declines in the rate of print usage have significantly reduced our revenues. At the same time, we are contending with substantial debt obligations. Unfortunately, this combination has severely limited our ability to refinance– leaving us no other responsible choice but to wind down operations."

What ensued was an interesting and active discussion in social media as to the cause. Was it due to a dying media platform? Other YP competitors? Failure to adapt? Others stood up for TMP and the yellow page industry as having solid ROI and many active markets. With everything said, it was hard to refute that the arrogance of continually raising rates 2-3% annually in the face of declining usage is not a great business practice. Some of the former exec's are already coming together as 2nd Act Local Marketing.

The second tremor that was less of a shock was that the Yellow Pages Association is no more.
The Yellow Pages Association is now the Local Search Association. This industry group unveiled the widely anticipated name change at its annual conference in Las Vegas this month. The logic behind this dramatic move is the association’s members are repositioning themselves more broadly, and less directly as "directory publishers", therefore their trade group should naturally reflect that fact.

After years of putting on a brave face, it was time to "reposition". Only time will tell whether the name change was cosmetic or real. As we all know by now, local search with Google, mobile and social platforms is hot and getting stronger as more of us convert to smartphones with better browsers.

The question "Is Yellow Pages dead?" misses the point. No smart advertiser wants to be among the last ones clinging to a declining media platform. There is a tipping point past which printed yellow pages or any other media will go...and then it ceases to be truly relevant -- whether it merely exists or not.

Google is 69.67% of Search and Search Impacts Everything

2011-02-03T12:02:00.000-06:00

Hitwise reported that Google is still the overwhelming leader in online search with 69%+ share (Dec 2010) with a sample of 10 million US households. That's no surprise. But more interesting -- beyond the small changes in month-over-month market share -- is the overall impact of search on our lives.

Here is a brief video recapping some interesting findings on what we all did with search in 2010:

QR Codes Need to be Easier or they'll be Extinct

2010-10-06T20:52:00.000-05:00

I was struggling to read a QR Code on a colleagues' business card recently (after three tries I lost interest) then saw Heidi Tolliver-Nigro's blog "Ever Tried to Download a QR Code Reader?" today. She struck a chord, judging by the number of comments to the blog.

While QR codes are novel, they won’t receive widespread acceptance until three things happen:

1) QR Code readers need to be loaded onto all mobile devices. This will remove the obstacle that Heidi mentions and increase user adoption. Think back to life before Adobe Acrobat Readers weren't on all new PC's. Get the picture?

2) Users will need a bit of training. Once the software is loaded onto all devices this will be fairly straight-forward...something like "Point and shoot to see this website". Once users know the software is on their device and recognize a QR code when they see it, we're halfway there.

3) Marketers will need to incentivize users with lots of value in order to get them over the hump. Just going to the homepage of your site isn't going to motivate anyone. They could just as easily go there directly or use Google. There needs to be something special there: a prize, coupon, sweepstakes, inside information...something to justify the extra effort in the consumers mind.

I’ve blogged on QR code readers a year ago and they remain a novelty today while other devices like ebook readers take off. If QR codes don't become easier to use soon new technologies that are easier will replace them. Look at Google Goggles. Point and shoot. No cryptic codes.

Remember: The Web grew (and continues to grow) based upon being better, faster and easier than alternative methods. Who buys a set of encyclopedia's anymore? Who spends all day shopping for a car, refrigerator or lawn tractor by going from place to place without first spending time online doing some local research? Time starved consumers can't wait.

On the Web its either Easy or Extinct. Pick one.

Do you have Uber Control over your Advertising?

2010-05-04T13:31:00.000-05:00

Nobody likes to think of something going wrong in the marketing department. The wrong ad ran. Product data or legal terms are out of date. Mistakes are broadcast and our in-bound callcenters, dealers and online customer service feels the heat. Upset dealers and injury to the brand are the result.

Our AdBuilder systems offer an incredible amount of control over marketing and advertising activities. We all know it, but don't want to think about the "what if" worse case scenarios.

We had one of those last week with a client. Frantic calls and red exclamation point emails fly. It's a big legal issue if we don't stop these ads. "What can we do NOW???". The AdBuilder team swung into action!

In a matter of 4.5 hours:
* the original artwork was pulled down
* all ads created were identified by number, author, date/timestamp and publication
* ads were located at print publications and recalled
* new ads were posted
* new ads were sent to print publications to meet original materials deadlines

Amazing teamwork facilitated by a well designed system. Thankfully everything worked out okay and was back to normal by lunchtime.

Do you have uber control over your dealer advertising like this? The ability to control your marketing message and brand is what separates merely good from great. We often don't want to think about "when disaster strikes", but we have a group of very happy marketing clients, agency partners, (and lawyers) who are glad someone did.

The Check is NOT in the Mail

2010-03-24T16:59:00.003-05:00

I attended a Direct Marketing Association conference last year that felt more like the "Online Marketing Association" versus the typical direct mail cheer leading sessions of yesteryear. it used to be that the USPS Postmaster General addressed the DMA with everyone hanging on his every word. There was an air of stability to the whole scene.

John Potter, Postmaster General, struck a different tone on Tuesday. It was direct and unvarnished. He talked about the staggering shortfalls in postal volume and revenue -- and the need for immediate and drastic change.

"It's reflective of a macro change in how society communicates." Potter stated, referring to the dramatic change brought on by online and digital technology.

This wasn't some little internal study either. Three big consulting firms played major roles: Boston Consulting Group (BCG), Accenture, McKinsey. This was big and serious.

The main story line in the press had the USPS predicting mail volume would fall 15% from 177 billion pieces in 2009 to 150 billion pieces in 2020; closing branches and limiting delivery to five days a week.

What wasn't widely reported were some darker statistics:

* BCG surveyed different groups to make their forecasts. Commercial mailers predicted a 15% drop in their volume, likely anticipating their own plans to move to online bill payment and outbound email. Consumers predicted a drop of 22% based upon their personal use of the mail system. BCG then used something called the "Broadband EU Leader" trend to project a 34% drop in volume by 2020. The last trend being more than double what the press reported.

* Real Revenue per Delivery Point is predicted to plummet by almost 50% by 2020 -- from $1.80 today to a $1.00 in 2020.

What are the implications for marketing?

1. Get used to a constant drumbeat of higher postal rates and lower service levels as we march toward 2020

2. Expect ROI for mailed campaigns to be increasingly harder to hit as rates increase

3. Make sure your lists are up-to-date and squeaky clean. Smaller micro-targets will become the norm vs. the exception as mailers seek to mine pockets of gold in their lists

4. Prepare now to transition your corporate and channel support programs online. The Ad builder system for your channel partners needs online options now to anticipate the trend and get them comfortable with those options (local online search, email, online video, text messaging, local Facebook campaigns).

The sooner your channel starts thinking this way the better. Your leadership from marketing is critical. The check is no longer "in the mail".

Digital POS Signage is coming

2010-02-25T22:18:00.002-06:00

Last month Intel unveiled a digital signage concept that will open up new digital opportunities at retail and ultimately change the face of point of sale signage. You wouldn't know it from the cheesy, low-budget announcement video from Intel, but this will be big.

This POS concept has a small camera that processes male/female, height and approximate age factors in order to serve up appropriate merchandise selections that might be relevant to you. Add in an RFID sensor that could read an Radio Frequency tag embedded on a loyalty card in your wallet and it would know how valuable you are to the store and what to show you. The logic of "what to show to whom" could be determined by the manufacturer partner, the "when to show" could be determined by the local store along with co-branded content.

We've had customizable price tags and POS templates in our Ad Builders for years, but I can certainly see the advantages of deploying promotions and messaging to these digital POS signs from the same Ad Builder system. That Ad Builder can help the store owner deploy Digital POS, Google AdWords Search, microsite content, outbound email and other media in one seamless campaign. Multiple media managed in one place, made simple. It's a store owners dream and helps the manufacturer keep its branding intact as well.

Publishing group changes name to be less "ancient"

2010-02-25T22:05:00.000-06:00

The Custom Publishing Council (CPC) announced an official name change last week. It will now be known as the Custom Content Council (CCC). Formed in 1999 to represent custom publishers and content creators -- anyone buying a luxury automobile lately has seen their work. A slick 4-color magazine with articles about road trips, new technology coming in future models, and feedback from loyal owners fill the pages. Major universities also publish these editions as they help inform alumni and generate donations.

Just 11 short years into its cause, the CPC had to change. Lori Rosen, Executive Director stated "...Publishing sounded ancient...Marketers and content providers are constantly challenging themselves to find ways to offer their audiences the broadest possible mix of relevant content—integrating print, the Internet, video, mobile media, social media, and more..." Full announcement here: http://www.custompublishingcouncil.com/news-members-article.asp?ID=706

The CPC realized it wasn't about print. It's about creating and delivering relevent content in all ways consumers interact with it. Print obviously isn't "dead", but it continued to be the defacto standard for brand communications even as the Internet boomed. Perhaps this will signal a change to marketing groups in companies large and small to continue to connect with their consumers online.

Liberate your content from the dusty pages of print and find consumers searching for you on Google, feed your blog and start a Facebook fan site. You'll reduce your printing and postage costs -- generating less waste and more efficiency. Don't forget your sales channel either. Your dealers and distributors need support, programs and good online tools to enable them to leverage your branded content to extend the reach of your content and make sales locally. Start here with a good dealer microsite platform and local Google search program. This will give you the ability to adapt quickly as new online avenues emerge.

The message behind the CPC name change isn't as subtle as changing one letter to "C". It has a resounding impact if we listen.

Using Print to Web QR Barcodes is Easy

2009-12-09T16:13:00.004-06:00

Following up on JGSullivan blog post from Sept 24th about new Print to Mobile marketing http://blog.jgsullivan.com/2009/09/24/print-ad-connects-to-microsite-through-phonecool/ I decided to create a 2-D barcode (called a QR code) for JGSullivan.com and try it out. Here is our barcode:

Scan it with your cellphone by downloading the free reader software. I used BeeTag software for my Blackberry by downloading it to my camera phone from http://get.beetagg.com/ . Then point, shoot and go instantly to our website from the QR code. Here is how it looks on screen before it takes you to the web address.

These codes have been widely used in Japan for years and are now catching on here. Today, dealers using our adbuilder software can store their QR barcode as an image saved in their profile. They can insert the image into any printed piece and allow those web-savvy mobile phone users instant access without any typing URL's. Imagine being able to offer mobile customers instant access to your website and special promotional offers from any newspaper ad, direct mailer, doorhanger, or window poster?

We can create these codes easily for your next cutting-edge campaign. Let us know if you're interested.

Go Green, Go Online

2009-06-26T13:34:00.007-05:00

I received a robo-call today from Best Buy. It stated that in order to use less paper and increase security that "The Reward Zone program is making some changes" beginning in October. From the Reward Zone website:

* Certificates will now be available online and members will be notified via email. To make sure you're ready for this change, please follow the next few steps to set up your online account.
This is important because starting this fall:

* Certificates will only be available online. They will no longer be sent to your mailing address.
* Most accounts without e-mail addresses will be cashed out and certificates issued in $5 increments. Any points under $5 will be forfeited.
* To remain an active member you must make at least one qualifying purchase at Best Buy during any continuous 12-month period (not every calendar year).

This move is well done on a number of levels:

1) Several months notice to members before changes take effect.
2) It saves paper, postage, fulfillment... in short - a lot of money!
3) It makes communication with Reward members almost instantaneous - via email. It also allows Best Buy to promote with special URL's and offers to this group. Better marketing!

So consider moving more of your paper-based marketing processes online like Best Buy.
Our landfills and your corporate budget will thank you.

Another one bites the dust

2009-06-17T23:12:00.003-05:00

Just a few day ago a client removed the Yellow Page functionality from its Adbuilder website for its dealers. That makes two that I know of since January. Its not that the print yellow pages don't have any readers. They still do, but its less and less each day.

Yellow page spending continues to go down by double digits, sinking 14% this year and 10% in 2010. It was down 6% in 2008 to make matters worse. This according to Jack Meyers Media Business Report, “Advertising & Marketing Investment Forecast 2008-2010.
The same report has Local online search is forecast to be up 8% (in this economy) and rebound to 14% growth in 2010. Folks, SEM didn't exist a decade ago.

According to a Feb.2009 Nielsen Online Survey, 50% of consumers surveyed reported they use online search engines to find local businesses, followed by yellow page directories at 24% and internet based yellow pages at a paltry 10%. Its pretty clear that consumers feel comfortable clicking versus thumbing through a thick yellow book.

The only puzzling question is when will more big companies get the hint and encourage their retailers to spend their co-op funds more wisely?

What will we do with all that extra money??

2009-06-17T23:09:00.004-05:00

I don't have to stare at the media spending reports too long before a striking conclusion hits me. Traditional (i.e expensive) media down; online media (not expensive) up.

What will retailers and SMB's do now that they don't have to feel hostage to traditional media to promote their business? What will they do with all that extra coin?

If you've spent any time around dealers you know how they love to carp about the yellow pages. The huge cost of the books that they're in -- the ones they couldn't afford -- the ones they missed deadlines for and were blocked out of the market for a full year. On and on the stories go. Newspapers are a close second. Thousands spent for one issue.

No more.

Local businesses can pay per click through and promote their message to in-market consumers through online search marketing. They'll know how many people saw their ad, and how many clicked through on their landing page. If they use a free service like Google Analytics they can even tie those consumer clicks to specific actions on their website like filling out a quote request, or a contact form. Change ad copy and offers as often as you like. Very cool. Very flexible. Very actionable.

No wonder spending on local search is increasing by double digits while print newspaper and yellow page spending is decreasing by double digits.

Froogle is now Google Product Search

2009-06-05T08:40:00.002-05:00

One of the new beta services we got to see at the recent B2B Refocus Summit in Mountain View was Google Product Search.

This free service takes a product data feed from a brand manufacturer or online seller and pipes it into organic search results with a link to buy online.

Several advertisers are using it now with good success http://www.google.com/base/help/ps_quotes.html.
screenshot of product search results

This service is part of Google Base and unlike Froogle years ago, this has the ability to have much more impact because it displays in-line with normal search results... no need to click away to see shopping results.
We're recommending it to clients that not only sell online, but sell collaboratively with their retailers (i.e where the purchase starts on the brand website and gets fulfilled by a network of local retailers). Complete coverage is the key here.

Google Product Search is also further recognition of how and why consumers use online search. Searching for product information is a core "pre-buy" activity. We conducted research in 1996 that proved this and began adapting our websites to address this need. Froogle sought to tap into this activity -- albeit in a separate area with an obscure name. Now its improved and part of mainline organic search -- right where consumers want it.

Newspaper nightmare continues

2009-04-28T20:07:00.007-05:00

Today an Audit Bureau of Circulation (ABC) report cited the average sales of newspapers overall declined 7.1 percent between October and March compared to the same six-month period the previous year. Of the 557 U.S. newspapers reporting their Sunday numbers, average circulation fell 5.4% in the March 2009 period, to 42.1 million.

According to the MarketWatch article linked here "The last six months have been nightmarish for the newspaper industry."

Given the dire conditions in the newspaper industry ABC is canceling its annual conference in Toronto. It promises to reschedule in 2010. My guess is they'll need a smaller hotel.

Large groups of local advertisers have taken notice as well. At a recent meeting I heard that the share of co-op spending on local newspaper advertising has slid in a few short years from 70% to half of that figure. Where is the money going in this case? Broadcast TV and radio -- likely because its easiest to buy among the traditional media.

Why aren’t more dealers spending more on local Internet search? After all it is more measurable, lower cost and can zero in on only those consumers searching for specific products and services. Well, local Internet search is still mysterious to many local dealers. It contains new terms and acronyms like CPC, CTR, Keywords, Quality Scores and more. Dealers don’t have a secret decoder ring (i.e. a local sales rep) to guide them through a myriad of choices and make the right decision. Don’t hold your breath waiting for the “Internet guy” to show up in your retail store to help. That won't happen. Until brand marketers deploy automated adbuilder systems that make it easy -- to take the mystery and guess-work out of the process – don’t look for any large co-op funded dealer groups to leverage the power of local search.

Recessions are Good?

2009-04-22T11:56:00.009-05:00

Now we all know that economic cycles go up and down. Today we are in a down cycle on our way up. While painful, recessions do force organizations to rethink how their money is spent and prompts cost cutting and greater efficiency. “We’re all trying to do more with less” is the mantra spoken almost universally.

One way companies are doing more with less is to automate their marketing support using an online adbuilder system. Adbuilder systems simply take templated marketing and advertising materials and allow instant localization by channel sellers – all online with no special software. These smart companies see an immediate return on investment vs. manually responding to requests to modify ads and marketing materials for each channel partner, and they protect their brand in the process! Here’s an illustration of the costs and benefits of this approach:

As you can see, the MyAdExpress adbuilder system reduces cost vs. hiring more staff to support marketing activities. The system also is available 24/7 to help channel partners when the corporate staff is busy, on vacation or otherwise unavailable.

Certainly recessions don’t feel good, but do force some much-needed change and improvement in our processes. Cutting un-necessary marketing support costs now allow for more investment in product development, advertising, research and other advancements that will spur business growth in the long term.

We don't need newspapers. We need journalism.

2009-03-30T12:56:00.002-05:00

This is the best perspective on the demise of printed newspapers I've read. Clay Shirky documents the various business models that didn't pan out (micropayments, prosecuting copyright violators, etc.) and a view of how messy this revolution will be - given how messy the period between 1400 and 1500 was with the introduction of Gutenbergs' printing press.

What happened to the buggy whip makers when horse and buggy went the way of the automobile? What happened to the telegraph as a key news source when radio trumped it? We survived with something better.

Predictions for the New Year: Hot off the Press (not)

2009-01-05T20:44:00.004-06:00

With a new year comes a new set of prognostications from the experts. Here is one of my favorites from emarketer.

While the predictions were published today "hot off the press", the news inside is that the presses are increasing cold. More frigid than the view off my back deck. Frosty even!

As a postscript to my blog post from 11/2006 "Election Results are Coming In" which highlighted the single digit readership losses for major newspapers over a brief 6 month period... the emarketer stats highlight continued double digit revenue losses in 2009.

While newspapers and other traditional media are losing ground in this economy, online is slowing but still growing. I'll take it.

Look for these tight-fisted economic times to accelerate the flow of money online -- for increased buying power vs. traditional media and for more accountability and effectiveness. Search is still growing by double digits. Also, no big surprise: coupon sites are leading the way as consumers look for every discount available.

"That Giant Sucking Sound"

2007-07-19T15:08:00.000-05:00

One of the favorite lines from the 1992 presidential campaign was uttered by Ross Perot referring to the effect NAFTA would have on US jobs. It has become iconic and now stands for the effect of any large, immovable force. It's appropo to consider in light of the latest announcement from Google as its expanding it newspaper ad buying service since it launched Nov. 2006.

To me, the real story isn't necessarily about this new service. Its about the impact on creating fully electronic workflows and processes in advertising.

"Let me finish"

According to the site:

"Print Ads lets advertisers bid on ad size, space and location in several newspapers through a Web interface. The papers, which set their own pricing, approve or decline these bids. Advertisers can see electronic copies of the ads on their AdWords page after they run in print."

The electronic copy isn't interesting in and of itself for users of our Content on Demand systems, because users already have one saved in their ad library automatically after they create the ad online ...but Google is mandating that newspapers provide them an e-Tearsheet. This innocuous little detail is what's great.

Here's how Google describes it:

"e-TearsheetGoogle Print Ads uses e-tearsheets, electronic equivalents of physical tearsheets. We require publishers to submit e-tearsheets in PDF format which are then sent to advertisers as proof that the ad ran as requested. Instead of getting a tearsheet over time in the mail, you can view it in your AdWords account immediately after it's been uploaded."

My guess is that Google will soon allow advertisers to email a copy of this e-Tearsheet to third party co-op administrators who are an important link for many retail dealers for verification/auditing and reimbursement back from the manufacturer.

This little e-Tearsheet combined with web-based media buying functionality creates a totally paperless redemption process. Google market power is big enough to train newspapers to create e-Tearsheets - so at some point Newspapers will do it for every advertiser too. After all, its cheaper than tearing & mailing them. (Cue: giant vacuum sound effect)

It's an end-to-end electronic process...100% from Creation to Buying to Audit to Redemption to Reporting. Imagine the cost savings; the speed, the accountability.

That's exciting. That's the future.

Can't get the hang of "new technology"?

2007-05-24T10:52:00.000-05:00

This bit of satire shows what it must have been like a century ago when a radical new technology arose...

Why Brands are still Important

2007-05-07T17:26:00.000-05:00

A recent NYTimes story stated that research firm, Yankelovich, estimated that a person living in a city 30 years ago saw up to 2,000 ad messages a day.

That number is up to 5,000 today and climbing.

I don't believe our human capacity to process information has grown much in the past 30 years. It certainly hasn't jumped by a factor of 2.5X (like ad message volume has).

This fact, along with the proliferation of available information and fracturing media landscape means that branding will be even more important tomorrow than it is today...and today it is critical.

The presentation on branding linked above is a bit long, but very well done, hard-hitting and simple to absorb.

Enjoy.

Google Buys DoubleClick to Expand Reach

2007-04-16T08:09:00.000-05:00

Curt Viebranz, CEO of Tacoda, a behavioral targeting ad network writes a great article today about Google's purchase of DoubleClick.

Google picks up online display advertising revenue, relationships, infrastructure and data...giving it control over the largest chunk of this business in the world.

Is there any doubt that Google (once known as only a search engine) is placing one more pillar in its construction of the largest, most comprehensive infrastructure to facilitate advertising on the planet?

Notice I didn't say "online advertising". I said "advertising". All of it.

While it's true that online advertising's growth is outpacing all other forms and advertisers large and small are allocating bigger chunks to online - Google is interested in monetizing offline advertising activity as well. They've struck deals with newspaper, television, radio concerns on their way to facilitating the purchase, serving and tracking of all types of advertising. Recent deals with Clear Channel radio and Echo Star satellite TV punctuate this point.

For an advertising agency buying media this could prove to be a one-stop shop. Google may make it so easy that clients do it themselves.

In any case, monetizing all types of advertising activity leaves Google a bit less concerned with the ultimate slice of pie Internet advertising becomes. It has those bases well covered and plenty of horses in the race no matter what the growth rate of the Internet is in 10 years time.

Did You Know?

2007-02-22T08:05:00.000-06:00

The media file linked above is a good mind-expander. Much of this information came from The World Is Flat by Thomas L. Friedman.

Please take a few minutes to absorb this and contemplate:

1) How will marketing and advertising change in this new world?

2) What core skills are needed to compete in this future?

3) How will I alter my approach to marketing in light of this?

I'd love to hear your comments.

Time Magazine's new pitch

2007-02-19T17:46:00.000-06:00

This banner ad for Time.com speaks to what magazines and newspapers need to do to win in the digital age.

Time "Imagine if we came out 4,000 times a week What's important. Right now. Time.com"

Time magazine is well known for covering topics in depth in a weekly printed magazine, but needs to position its website as leveraging its editorial and reporting prowess into a constantly updating online media outlet. What a great idea.

Instead of sitting there wringing hands over plummeting print circulation they are embracing the Internets' strengths, and positioning themselves to run parallel outputs until consumer tastes shift more prominently. They'll cross that bridge when they come to it.

At some point in the future (2027?), receiving a weekly printed magazine in the postal mail will be so special and expensive that people will shell out good money for the privilege. This will be akin to the feeling you now get when you receive a Hallmark card. It's special.

Until then, Time and others need to continue to leverage their core strengths: Editorial and Brand.

Humans still matter ;-)

2007-01-27T22:29:00.000-06:00

In an increasingly digital, push-button, "click here" age the human element is still important. We expect technology to fail us periodically, but when humans slight us it's personal.

Here is a recent review of the 10 best and 10 worst customer callcenters. Some may shock you. Others sadly won't, as we have heard the infamous news reports or even had a personal horror story ourselves.

Surprise! It's not the offshored centers that all performed poorly. Some of those got high marks, while some domestic operations lag far behind. Naturally, it appears to have more to do with a firm's attitude and diligence around providing good customer service.

Noisy Birth and Quiet Death in France - Dec. 2006

2006-12-22T12:50:00.000-06:00

The headline yesterday that Paris-based Publicis buys Digitas signaled a huge, watershed moment.

The $1.3 Billion sale price was 21 times EBITDA and more than 3 times revenue. Publicis Groupe stock rose 2% on the news. Publicis Chairman-CEO Maurice Levy tells Online Media Daily that "The massive shift from old media to new media is leading to a new world, and we don't want to be on the sidewalk".

What does this signal?

1. Valuations for internet businesses are still quite strong...signalling more upside than the 2002-2005 period. This time around, valuations are based upon real revenue, earnings and strategic importance.

2. Levy thinks that bigger is better, especially when negotiating with gigantic media properties like Yahoo, Google, MSN and others. It's a model that has worked during the last century for advertising agencies and there's no reason to think that it won't now.

3. There will certainly be winners and losers as the internet continues to develop, mature and deepen it's roots in societies around the globe. Losers are old thinking, old media and old capabililties.

And in a far quieter and Far Side sort of way, we still know that the French can still make waves in the digital world. In 1982 they launched Minitel, a pre-cursor to the modern day internet, which will cease service in a few short days on Dec. 31, 2006. 25 million French used it to check stock prices, make train reservations and buy goods and services online...spawning start-ups just like internet-based ones.

This will be the first of the successful digital media to expire.

Buying Media in the 21st Century

2006-11-22T18:42:00.000-06:00

This article in the International Herald Tribune caught my attention because it talks about the full court press by Google, eBay and Yahoo to transform the way traditional media advertising is purchased. Just as my company is transforming the method of creating traditional ads and direct mail via the internet, so too is media buying going to change.

The web has been a powerful force in bring transparency to the price of all kinds of things. Want to know the market price of almost anything? Check it on eBay. Interested in what the going rate for your industry keywords are on Google? A few clicks will tell you. Bringing transparency to media buying will certainly allow small to medium sized companies (without the services of a media buying firm) to easily select and buy advertising.

But with transparency comes a squeeze play -- as old line media are exposed with real market pricing online. Look for the large buyers to squeeze (an evermore fragmented) media with falling readership or viewership down to the real value. As true audience measurement is automated via online tools and panels this could all come together in a dynamic media ad buying marketplace where pricing isn't locked in as it is today...but fluctuates by the hour. Think about the transparency of the stock market. This Nasdaq future could be reality in the next decade for the ad buying world.

PURL Jam

2006-11-14T20:37:00.000-06:00

I just returned from a Variable personalization conference in Phoenix sponsored by PIA/GATF. All the buzz was about the internet and tying in direct mail into Personalized URL websites or PURL's.

The optimism was palpable as I heard several printers in attendance offer up PURL's as a solution to this or that opportunity. Finally a real solution in a stretch of years that has offered more than enough challenges! Promises of dramatically higher response rates abound. Finally, a new way to qualify prospects, generate sign-ups, and RSVP's for brand events.

While PURL's *are* a good solution to extending direct marketing campaigns to the internet and creating a true cross-media campaign, they shouldn't be viewed as a panacea or a substitute for actual creative ideas and good marketing thought processes.

Here's why:

1. Novelty effect - remember how excited you were to get your first email? Enough said.

2. PURL's as enacted by many are purely tactical -- "Isolated Islands of Interactivity".

You'll recognize these campaigns when you respond to more than one PURL and the second, third one doesn't recognize your previous response, your current status, or seek to advance the relationship. This is like running into a friendly but forgetful chap who always is glad to see you, but asks the same questions over and over and over again. "Do you have a family?" "Where do you work?"... all nice things to ask - just not more than once.

If you aren't feeding data back to the master record, tying it together and acting like you listen - it's an opportunity lost.

3. Counting on dramatically better response rates to keep customers happy.

Some are touting response rates that are 3x higher than traditional direct mail response rates, which would be true cause to celebrate...but buyer beware. One campaign example that I recently examined counted consumers hitting the Welcome Page of the personalized site as a response.

I'm sorry, but counting responses to those hitting a welcome page (and bailing) is -- like counting those that opened your envelope, but didn't respond to your offer -- like counting folks who hear the first 5 seconds of your commercial before changing channels.

Perhaps the delta between true responders and those bailing after the initial click-through should be referred to as the "novelty responders", or the "I didn't feel your offer was that interesting" responders.

There may be a way to lure these "novelty responders" into a relationship at some point...but it hasn't happened yet...and they shouldn't be counted like they have.

Let's all agree: PURL's are a good step in right direction. Those who use this tool with creativity and thought will reap the most benefit.

photo © Dani Plana Trenchs for openphoto.net CC:Attribution-ShareAlike

Election results are coming in

2006-11-07T19:48:00.000-06:00

As I watch election results stream in tonight from the mid-term election, I've been reflecting upon the ongoing election we've been witnessing over these last few years -- the voting that consumers have been doing with their mouses.

Newspaper readership has been slipping steadily over the last few years, but nothing like the results from the latest circulation reports. A steady slide has turned into a steeper dive, as almost every major metro paper in the study saw declines. Fully 22 of the top 25 daily papers saw declines in the 6 month period ending Sept. 2006!

Sunday papers, once the sacred cows of publishing, also saw steep declines.

Here is the summary.

Some of the steepest 6 month declines:
Los Angeles Times: (-8.0%)
The Philadelphia Inquirer: (-7.5%)
The Boston Globe: (-6.7%)
The Oregonian, Portland: (-6.8%)

The scope and size of these numbers is shocking even to those of us that expected it. Are we witnessing the tipping point? With circulation slipping, the pressure will be on to cut advertising rates (pressure from customers getting less bang for the buck, and pressure from ad sales departments to make the numbers). As more customers test online media for local advertising and find success, the flight away from traditional newsprint will continue.

Where will their numbers bottom out? They don't have to go to zero mind you...they only need to go below the breakeven level needed to support the incredibly high fixed cost infrastructure.

Most of the editorial and sales staff would still be needed in an electronic version, so much of that stays. Exactly where that breakeven point is only the newspaper knows, but as the numbers continue to skid, look for more bad headlines.

You'll see at some point, I predict, that certain papers will do what the trade magazine Electronic Publishing announced in March 2006: that it would stop printing altogether. (Nevermind the irony that a magazine called Electronic Publishing ever was *printed* to begin with.) The point here is that the overhead needed to publish and deliver an electronic edition is much less than the that of a traditional printed newspaper.

Digital Expertise Forges a Closer Customer Bond

2006-07-25T22:21:00.000-05:00

My article printed in the inaugural issue of the NAPL Business Review; May 2006, Pg 22

Sometime back in the last century, when regular unleaded was $1.25 gallon (ah the days) a large manufacturer in a conservative business began an experiment that would turn out to be a shot heard ’round the world.

The company employed a good number of customer service reps whose job was to respond to calls from consumers who wanted product information about a potential purchase by sending them a catalog. It seemed like a good process, but there was a flaw: The catalogs were often out of date and contained old product and price information.

Ironically, the correct data was available on the company’s website, where prices and descriptions were accurate to the minute. This was good for the Internet shopper, but it was only available to those who took the time to search for it, and it didn’t reflect well upon the brand if the printed and electronic information didn’t match.

A Better Mousetrap
Recognizing the problem, some CSRs took the problem to a company marketing person, who listened and began analyzing catalog printing, fulfillment, and postage costs. He could see that the company got a very good price per catalog because they printed so many, but he wondered what the real cost was when tons of catalogs were obsolescing as they sat in the warehouse month after month.

Surely there was a better way, he thought, and he developed one. Within a year the company created a system that let CSRs turns the timely website content into accurate responses to consumer phone calls. When an inquiry came in, a CSR now went to the website, selected the latest product data, and included it in an immediate personalized email response to the consumer that thanked him for the call, let him know product information was on the way, and even included a reference to information that came up on the call, such as the event that may have triggered interest in the product – e.g. moving or remodeling, etc. Each night, all the day’s requested information was printed digitally and mailed within 24 hours. The result: Not only were consumers getting more accurate information, but follow-up studies showed that they were 30% more likely to purchase the product when they received the updated and personalized responses.

What the company had done was capitalize on the benefits of print’s selling power and electronic data’s timeliness and leverage their combined attributes with the variable data capabilities of digital printing to make a more powerful customer response. It was one of the first documented cases of creating digital collateral.

In its simplest terms, digital collateral is sales and marketing material created from digital assets. It is more effective than other types of collateral because it is flexible, timely, protects the brand image, and, perhaps most importantly, allows frontline employees – channel reps, CSRs, agents, field sales – or even the consumers themselves to create more useful, targeted, and compelling sales information.

It works better than “one size fits all” promotional materials, is more cost effective because its targeted approach leads to more revenue per piece, and eliminates the waste and storage costs associated with huge-press run collateral.

In the example above, consumers received information that was accurate to the exact models they were interested in without having to wade through dozens of pages of non-relevant data; the material included a listing of the dealers closest, further moving them to purchase action; and it was personalized – both with information derived from their call and signed by the CSR with whom they had spoken.

Anticipation was heightened because it was preceded by a brief email thanking the consumer for calling and telling him information was on the way. And the cost of digital printing was more than outweighed by the saving s from mailing two to three sheets of paper rather than a large, heavy catalog.

Content is King
Business clients will generally respond to this example with enthusiasm for the possibilities of this new process; printers who know that their success is dependent on their ability to be a graphic communications supplier and client partner will understand the possibilities in being able to lead their customers in new, profitable directions by marketing their digital expertise. The last catalog you printed now exists as content in digital file form in your system and “content is king” because it can be repurposed for your customer in a variety of ways – value added opportunities that can bring in new income for your company without one sheet of paper going through a press.

Don’t confuse content (message) with output (medium). Content can be
delivered in any output form: print, email, Web, mobile phone, text message or (fill in the blank in two years).
Content is not the paper stock, UV coating, embossed logo or type of ink used. It is the information – and its value is based on its relevancy (accuracy and timeliness) and its accessibility.

Some of this content your customer has always had in the form of product specifications, features and benefits, purchase histories, and consumer addresses and profiles. Some content is new or coming from new sources: channel partners, marketing reports, mailing lists, sales reps, CSRs, or consumers themselves. Part of your digital expertise will help you connect information from these sources with your files and your client’s databases.

The key to capitalizing on this opportunity is to understand that the collateral your client asks you to print is simply a part of a much larger marketing and sales process. Be curious enough to want to know about the entire process, and then become a “deconstructionist” to pick it apart. Where is the process breaking down Where is the unnecessary cost? Often, and increasingly, this is in the postage and storage/waste costs.

Up and Running
What does it take to get an integrated digital collateral system up and running?

Because the value comes from understanding, integration, and usability, it’s not something that you can do using an off-the-shelf software package that will work with every customer. This is a customized, value-added service and it may involve a team of system administrators, database creators, information architects, programmers, html designers, business analysts and quality assurance professionals-- and both client and printer project managers to thoroughly understand the business need and develop a tailored solution.

Is it worth the effort? One client for whom our company recently
redesigned a system reported a 300% increase in print volume after just four months – and projects it will double in a year.

Keep in mind that once your client has invested the time and money to work with a supplier to deploy a well-developed integrated system like this, he is not going to leave and start over with another supplier. More often, once clients roll out a system, they want to add more materials into it and more functionality around it.

One large printer, for example, is looking for an upgraded digital collateral system for its client that allows client reps more flexibility in creating better versioned mail packages for its customers. It is critical that this system interface in real time with the customer database and have multiple approval layers. This printer believes that, with an upgraded system, this client’s orders may double to approximately two million pieces annually.

We have worked with another large digital printer to develop a comprehensive integrated system for deploying templated html email, customer surveys, and micro sites, utilizing the same client data that drives millions of print pieces such as product–specific data, regional promotions, Lease vs. Buy messages, ownership references, and more. The printer and client worked together to develop the system so all the risk was not on the printers’ side.

Over the years, we’ve also worked with some digital printers to become part of an existing integrated systems built for specific clients. Almost without exception, once a client invests the time and money to build an integrated system that works well, he sticks with it. These systems foster consistent growth and investment by the client in the supplier. Entering on this kind of printer-client endeavor is certainly not as simple and easy as taking an order over the phone, but it is a growth area that will become an increasingly important segment of a successful printer’s businesses.

The Ultimate Marketing Machine

2006-07-19T21:44:00.000-05:00

This article in the Economist nails it. It sets the online advertising world in the larger historical context of advertising and marketing. It's a great read about how marketing is being forever changed in the 21st century. Enjoy.

Interview: Trends in Digital Collateral Systems

2006-02-16T08:38:00.000-06:00

Heidi Tolliver-Nigro is a great lady and has a deep understanding of the evolution transforming marketing today. We spent a few minutes together last month and the interview was published in the OnDemandJournal last week.

Digital Convergence : Digital Fragmentation

2006-01-04T22:05:00.000-06:00

Back in the late-1990’s I firmly believed that the computer chip was going to converge with every other device on the planet. Author Kevin Kelly http://www.kk.org/biography wrote about this in his book “New Rules for the New Economy”. He talked about a world when computer chips are so cheap to manufacturer that they’ll be as plentiful as jelly beans, appearing almost everywhere. Indeed, just in the last few years we’ve seen ever smaller devices getting all kinds of new functionality: functions driven by tiny micro-chips. Think about: iPod Nano, GameBoy, Motorola Razr, palmOne Treo 650. These gadgets and other super slick devices are now multi-function powerhouses rippling with MP3 players, MPEG4 video players, digital cameras, phones, GPS, Bluetooth wireless functionality, and more.

I got to visit Tokyo a little more than a year ago. During that week I witnessed throngs of ordinary Japanese citizens gazing into their cell phones: watching television, instant messaging, checking email, sending email, taking pictures, swapping pictures, playing games, and (yawn) talking on the phone. I asked one Japanese colleague what all she did with her mobile phone and found out she ordered a lot of catalogue merchandise using her phone…not by calling, but electronically. Many of the phones were 3G (broadband) and enabled with smart card technology to allow secure transactions up to your pre-loaded account limit, seamlessly off the phone. While there I was told of new “intelligent chip” technology being piloted to allow coupons and interactive offers to be instantly downloaded to cell phones from point of sale signs.

Imagine walking up in the subway to a large display sign for your favorite coffee spot, and “ping” hearing the sound of a new $1.00 off coupon hitting your cell phone.

You stop by your favorite coffee spot later that day to redeem your coupon “pling” at the register. Or you forget to stop by and get an email in a week reminding you that your coupon will expire later that week. Or you get an extension offer because you’re a MVC (Most Valued Customer)…you get the picture. The possibilities for marketing are endless.

It’s clear what is happening. Yes, the micro-chip converged with everything, but more importantly the functionality that people desire is converging with everything. My cell phone, laptop, iPod and PlayStation are becoming my TV. My laptop, cell phone, iPod and PDA play music. I talk to friends through my Instant Messenger on my laptop --- it’s now a phone. Digital pictures are shared everywhere. My TV is under my control from my DVR (I watch what I want, when I want). Everything connects to the Internet.

The inevitable and un-ending march of all content toward digitization ensures this trend will only continue. This is a critical piece of the puzzle, and it’s only the first chapter.

Marketers must realize that this is the new way the world works:

More consumers will be mobile, multi-tasking, elusive and opt-in only

Consumers will control what, when and how they watch, listen and order

Devices will continue to evolve and proliferate.

Believe me, this is not a time to coast on what you knew even five years ago. The media landscape is now an evolving primordial soup, bubbling with new content, devices and transmission and evaluation methods. Audiences have fragmented and time-shifted themselves to the point of no return. Case in point: Television programming chiefs have recognized that for the first time in 2005, more 15-24 year olds were on the Internet than watched Television. I’m sure they were not doing the same thing on the Internet either. Some were likely gaming, others email, others on websites, instant messaging or all of the above. Let the games begin.

The Media Forest

2005-10-30T19:15:00.000-06:00

Trees are falling in the media forest. Can you hear them?

You’ve no doubt heard the riddle: “If a tree falls in the forest and nobody hears it, did it make a sound”? I’ve pondered that occasionally, but never more than now.

If the current landscape of media options is “the forest” then once mighty redwoods are falling….one by one.

It doesn’t occur everyday, so you may not have noticed. But slowly but surely the landscape is being remade before our very eyes.

First it seems was Encyclopedia Britannica.

The first editions in the U.S. were printed in Philadelphia in 1790 by Thomas Dobson.
Two hundred years later thousands of salespeople went door-to-door to sell these volumes for more than $1,500 for the entire set of accumulated knowledge. In 1989, the company boasted a sales force of 2,300. In 1990, company revenues hit an all time high of $650 million. Life was very good. In hindsight it was the proverbial calm before the storm.

Enter the PC, the Internet and the digitization of content.

Microsoft Corporation wanted to offer an encyclopedia with its operating system and first sought to license the name and content from Encyclopedia Britannica but was rebuffed. Was it arrogance fostered by 200 years of success? Others called it a lack of awareness and a misjudgment of what consumers really valued.

As a result, Microsoft bought Funk and Wagnall’s in 1992 and launched Encarta in 1993…selling a digital version for about a hundred dollars. Many PC manufacturers gave Encarta away for free with a computer purchase.

In 1998 Encyclopedia Britannica disbanded its massive direct sales force. In 2003, you could get the Encyclopedia Britannica for about one-twentieth of the price you may have paid in the mid-1980’s.

Electronic versions of encyclopedias were more up-to-date, and consumers could easily justify another $49.95 to keep the information fresh and current….something the old printed versions could never do at that price or with that speed.

Encyclopedia Britannica sales in 2000 were $190 million and the company employed only 230 people…a ninety percent reduction in less than a decade.

In June 2005 Thomas Register announced that it was going to be offered exclusively online in 2006. What was once volumes of thick printed material that needed a sturdy shelf to keep it up, it’s now transformed. Thomas Register must have learned a thing or two from watching Encyclopedia Britannica. The president of Thomas Register made a bold statement in 1994 that “We’ve got to get our clients print catalogs up on the World Wide Web”. Today the company promotes it ThomasNet service, builds websites for several industrial firms, offers online local search tools and a host of online business building services for its clients. Smart.

What characteristics do other large redwood businesses have that need to be concerned? Any old line business that possesses rich content that is distributed primarily in print.

Think newspapers (whose circulation continues to slide).

Think yellow pages (whose monopoly grip will start feeling the pinch of much better search local tools from Google and others).

Think trade magazines (whose print business is under pressure and its readers are online at work)

Keep your eye on the forest and listen for those giant “thuds”. Keep your eye on the forest and watch for companies transforming themselves like Thomas Register…avoiding an Encyclopedia Britannica.

photo © Michael Jastremski for openphoto.net CC:Attribution-ShareAlike

Old Media Becomes New: A growing pains story

2005-09-29T18:12:00.000-05:00

I was cruising through a recent issue of TelevisionWeek, a trade magazine for TV, Cable and media types, when I was hit upside the head by an editorial on the opinion page.

I’m not easily shocked. All the more noteworthy.

The editorial titled “The Digital Picture Needs Fine-Tuning” put out a call for Congress and the FCC to lay out a clear plan for a “smooth” transition from analog to digital TV, and subsidize and legislate all manner of things from low-income household subsidies to set-top converter units to tax credits for seniors.

Wow. It went onto say that while the industry has long fought for self-regulation, this was an area where the industry couldn’t manage itself, and the government needed to step in.

Hey, I’m all for “smooth transitions” but might this smack of a large media complex trying to protect itself through a potentially rocky technology shift?

On January 2009 all TV sets are supposed to be fully digital, capable of receiving the High Definition (HD) transmissions. Old analog sets will not be able to get these signals. Hmmm.

Outside of the obvious issue with “another government program”, what’s the problem with letting this old-line media struggle a bit like all other media types do with growing pains? Seriously. Having championed *new* database, internet and loyalty marketing approaches over the last 10 years -- trying to pry funding away from old media – this strikes me as a bit funny. While old-line media got a huge portion of the typical marketing budget, starving out other options, now the shoe is on the other foot. Now they have an opportunity to have a relatively small reach, and be the new kids on the block.

I remember newsreels from the early 1950’s when one family on the block got a new TV set. It was special. Mom, Dad and the kids were all huddled around the glow of the set watching their favorite Milton Berle show. Apart from the nostalgia that holds, it also depicts the story of a new media, reaching out and stretching to stand on brand new legs.

They can have that new media glow once again…unless the government steps in to “smooth the transition” with subsidies and tax credits.

Did the horse carriage makers in the last century get subsidies to convert to motorized carriages? No. Did consumers get tax breaks to upgrade from rotary dial phones to touch tone so they could benefit from a host of services like caller ID and call waiting? Nada.

Even if Al Gore did invent the Internet, he certainly didn’t create a large government program to subsidize computer purchases or internet access. Why here? Why now?

The Power of the Push Me - Pull You

2005-09-25T21:07:00.000-05:00

Does anyone remember any of those wacky Doctor Dolittle characters from their childhood books? As many as there were, the one I remember the most was the Push-Me-Pull-you. The Push-Me-Pull-You was the two-headed llama whose two halves were so connected that they had to work together to go anywhere. The reason I remember it is because it may be an appropriate metaphor for the power of the Web in our lifetimes.

The Internet and other “connecting technologies” are literally permeating the very fabric of our existence. With all the hype that we've seen over the past eight years, it's hard to imagine that we are only seeing the very beginning of this evolution.

On the technology horizon, you may have heard about RFID, or Radio Frequency Identification. It has recently been mandated by Wal-Mart for it's top 100 suppliers to help track shipments and warehouse inventories at a more granular level. Wal-Mart is using these tiny transmitters --affixed to everything from shirts to soda pop to--to automatically keep track of millions in inventory. In the future, it will be possible to track individual items in and out of stores, and also to track the ones you're wearing. Imagine being able to tailor a message on a store sign based upon a sensor in that sign that knows who is in front of it. Personalized offers indeed! The upshot is that with Wal-Mart creating and stimulating the market for this technology, the rest of retail and the supplier community can't be far behind. This is part of the next wave.

Closer to home we've already seen a move by marketers to use all commercially available technology now to reach out and connect to their customers. Many trees have been felled extolling the virtues of building relationships with your best customers….and for good reason. MVC's (Most Valuable Customers) typically account for the lions' share of your company's business.

This driving need by marketers will continue and intensify. But wait! With all the advances in technology, haven't we also witnessed a backlash against those that use technology to bother us? Absolutely. When technology allowed mass mailing to become economical, there were cries about “junk mail”. When telephone technologies enabled more productive outbound calling, there was legislation on telemarketing. Ditto for FAX machine marketing, and the Internet. SPAM is feeling the backlash now and for good reason. Our firm provides Web services for thousand of independent dealers, and we block millions of SPAM emails a month from their accounts. It's a real problem, and one that won't be solved by the passing of a few laws in Congress. But those in the printing industry who are secretly hoping SPAM will spell the end of the Internet evolution are destined to be disappointed. In the big picture of marketing communications, SPAM is only a blip on the radar and in time will become a non-issue. Every other new communication channel has had its challenges and this is no different.

To me, the fundamental issue with time-starved, attention-deficit consumers is control.

Consumers want control over their exposure to marketing messages and they want to control the frequency and relevance of the information they seek when making purchases. This basic need for control and relevance will help ensure that websites and web-based delivery systems like email will be around for a long, long time.

Websites provide consumers with the ultimate in control and relevance. If you choose to visit a site, you do. If not, you don't. You control where you go on the site and if you want to drill deeper into a topic. Want still more information or a live chat session on the spot? Request an email response or sign up for an email newsletter….again, you're in control. You're in charge. You choose to pull or not. Marketers can push, but you choose to pull. It's the ultimate Push-Me- Pull-You. Dr. Dolittle would be proud.

photo © laurenz Bobke for openphoto.net CC:Attribution-NonCommercial