Category Archives: Brand Building

Thoughts on Yahoo and Microsoft Merging

Note: This was actually written on Friday, but I haven’t had a chance to post it til now. I’ve been travelling and access has been an issue. But I just came back from the opening reception at the MediaPost Search Insider Summit and the latest seems to be that the hype of this deal is far ahead of any actual discussions. That said, I think my comments are still valid, because as we’ve learned, things can happen fast in this industry.

Friday, May 4

The big news this morning as I was burning off some calories on the stair climber was the possible acquisition of Yahoo by Microsoft. I was actually in New York when I heard the story break, and one of my meetings today was at the Microsoft New York office, so I thought it would be interesting to ask my contact there what she thought. She indicated that this story has been going on for years now, but apparently they’re going back to the table. As we were chatting in a conference room, someone walked by outside asking somebody else if they had bought Yahoo stock. The media speculation was good news for Yahoo stock, not so for Microsoft.

Obviously, there’s a lot to mull over here. Rumor has it that Steve Ballmer is not taking Google’s DoubleClick scoop lightly. In fact, he’s downright pissed. And he may be preparing to make Terry Semel an offer he can’t refuse. Semel’s played hard to get before, but this time the shotgun marriage just might take.

The obvious question is how the two search properties will combine. In this case, it might be a case of two wrongs not making a right. Yahoo has managed to keep their search share from eroding too badly with Google’s domination, but Microsoft has been sputtering out of the starting gate from day one. The problem is that Yahoo and Live search duplicate each other in many ways, rather than complement each other. The biggest problem with both engines is too much focus on revenue generation and not enough on user experience. They each have their different flavors, but the combined Microhoo (or YahSoft) is in no way a Google killer. In fact, with the turmoil of a merger and the inevitable awkwardness of combining search teams, I see the focus on the user suffering even more. Both engines desperately need a clearly focused user champion to revamp the search experience (ala Google’s power usability troika, Larry, Sergey and Marissa) and this deal just doesn’t produce that.

I think the rationale of the deal has much less to do with search and more to do with a rather petulant online land grab. Yahoo does bring some interesting assets into the Microsoft fold. Microsoft is definitely eyeing the Asian market, and Yahoo has dominates in most of these markets, with the exception of China, and that’s a whole other story. Yahoo also brings a lot of users and online real estate as well, with roughly double Microsoft’s user base. This move looks like a strategy to bolster the front line for a head to head confrontation with Google in the ad serving space. Of course, it could just be the Ballmer has a lot of cash burning a hole in his pocket and everytime he goes to spend it, Google snatches the acquisition away from him. Steve wants to buy a ball he can actually take home.

One really interesting aspect of this is what it will do in the search space. While I really don’t think Yahoo’s search assets are the impetus for the deal, the potential combining of Live Search and Yahoo cleans up the search landscape a bit, and my guess is there will be significant user fall out from this. This will not be good news for the users of these two engines in the short term. But it could be extremely good news for Ask.

I just did an interview with Michael Ferguson, Ask’s usability point person (coming in Search Engine Land next week) and the IAC team are doing some really smart and relatively innovative things with their engine. And they’re probably the least aggressive in jamming ads on the page right now. Diller has provided a big enough bankroll to allow Jim Lanzone and his team to take a long run at capturing marketshare and this just may be the break they need. Based on what I’ve seen, Ask is paying a lot of attention to the user experience, and they may well pick up some converts and some pretty significant marketshare lift because of that. Perhaps Microsoft employees should be eyeing IAC stock. Or perhaps Steve Ballmer is starting to jot them down on his shopping list. After all, Google will probably scoop Yahoo out from underneath him at the last minute anyway!

Getting the Brand Point Across, One Touch Point at a Time

First published February 8, 2007 in Mediapost’s Search Insider

One of the great ironies of marketing is that we’re in the communication business, but many of us aren’t that good at it. And I’m not talking about broadcasting to a million people, I’m talking one-to-one, get-your-point-across communication. We tend to hide our real meaning under reams of spun language, taking the core of the message and wrapping it in the cotton batting of “marketspeak.”

We’ve come to believe that to make a brand message successful, you have to create mental pictures that tie the brand to vague and hopefully attractive emotions. But when it comes down to saying why you should buy something, in a way that hits home with a consumer who’s ready to buy, we’re at a loss for words.

Talking the Talk, Not Walking the Walk

Evidence of this was so painfully and clearly pointed out in a recent study by the Louws Management Corporation, where 80% of 711 advertising and marketing professionals surveyed said they are strongly aware of their company’s brand positioning, but only one fourth of them “can clearly articulate (their) company’s brand position to… clients, customers or prospective clients.”

Perhaps those of us in search have a unique perspective on this. After all, there’s not a lot of room in the few dozen words typically found in a search listing to expound on the warm fuzzies. You’d better get the point across, and fast, because the typical searcher is only going to “engage” with your listing for a few seconds at best before exercising his control and clicking through to your site, or not. You become a marketer of few words, nailing the “hot buttons” quickly and precisely. In fact, we’ve gone too far the other way, convinced that everyone who is searching is also buying immediately, an assumption that’s at least 85% wrong, according to past research we’ve done.

Brand = Experience

But I think there’s something more fundamental and troubling in these survey results. Jakob Nielsen once said that on the Web, branding is much more about experience than exposure. This is true to a profound level that escapes many marketers. In the new world of empowered buyers, they engage with a brand at a thousand different touch points, and every one of those touch points builds a brand “mosaic” — an image of the brand that the buyers participate in building because the Web has empowered them to do so.  Every single member of the company that consumers connect with also helps build this collective brand picture.

And that’s why the findings of this study are so deeply troubling. If 75% of the people who are the marketing stewards of the brand message can’t express it in simple language, what hope is there for the customer service person, in a contracted call center, who, for one customer at one particular point of time, is the entire brand? In this new reality, where brand is built on the front lines, through real contact with real customers, rather than in carefully controlled messaging that comes through a handful of advertising channels, crystal-clear communication within an organization becomes an imperative.

Cult-Like Marketing

In this new definition of marketing, cult-like cultures, an obsessive focus on corporate purpose and company-wide alignment are the prerequisites for success. Brand messaging has to be more than marketspeak, it has to be a mantra, the cornerstone of a strategy that is communicated to every member of the company repeatedly, clearly and fervently. It has to be a concept so crystal clear, so absolutely unambiguous, that there can be no questioning what it means. Every single member of the company has to have it on the tip of their tongue – and, infinitely more important, embedded deep within their beliefs. That’s the only way it can be consistently spread through the thousands and millions of interactions and conversations that make up the new brand mosaic.