Category Archives: Corporate Strategy

Don’t Think Recession, Think Resetting

I was listening to an interview the other day and heard the best piece of economic news I’ve heard in over 2 years. The person being interviewed was talking about changes in urbanization in North America and he said he doesn’t think of the current economic situation as a recession, he thinks about it as a resetting of the economy. That got me thinking.

His point was that in the two most dramatic economic pull backs in the last two centuries, there was a corresponding seismic shift in how we worked and how and where we lived. And after the pain of resetting, the world emerged and prospered for a significant period of time.

Consider the economic turmoil of the 1870’s. By all accounts the world was in economic ruin. The colonial empires of Europe were beginning their long, slow decline. The largest bank in the US, Jay Cooke and Company, failed. The speculative bubble after the civil war burst. Labor unrest was epidemic, leading to riots in Chicago, San Francisco, Pittsburgh and New York.

Or the Great Depression of the 30’s, the economic disaster that’s still only a generation or two away for most of us. A stock market collapse, followed by a banking collapse, followed by massive business closures and unemployment.

But the fact is, significant change and yes, advancement, came from both these periods. In the 1870’s, an agrigarian society moved to an industrial one, significantly increasing our production capabilities, creating the huge factories and huge relocation from rural areas to the dense urban centers. Immigration swelled North America with millions determined to create a better life. There was massive change, which always brings pain and unrest, but also advancement. One can’t seperate the two. They come as a package.

As the world emerged from the Great Depression and the Second World War, we began the move to the suburbs and the Great American Dream, brought to you by Kelvinator, Pontiac, Maytag and hundreds of other bread and butter brands. A second wave of immigration brought new dreams and aspirations to our borders.

Techonology always moves faster than humans. And, in the shift, entire societal frameworks have to be reinvented. This never happens incrementally or smoothly. History has shown us that existing infrastructures have to be torn down and new ones erected. Through the process, human emotions run rampant, which flood our ever so fragile economy. This has always been the way, and it will always be the way, because we are who we are. Our mental hardware hasn’t changed in thousands of years.

But in this reinvention, this resetting, we build the foundations for the next stage of our ongoing story. And in this regard, there are tremendous reasons for economic hope. If you rise above the micro view and look at the macro picture, the efficiency of the digital marketplace is extraordinary and will provide the greatest boost to our productivity in history. Forces of globalization are leveling wealth distribution and the tide is raising all boats. Science is on the verge of hundreds of life altering breakthroughs on almost every front. The global standard of living has never been higher, along with life expectancies and levels of education and health care. The challenges are not so much economic. There we just have to rebuild sustainable infrastructures to accommodate the new realities of enhanced potential and get rid of some nasty habits of over consumption. And while we’re working through the process we have to make sure we don’t rape our planet beyond repair.

The world is not in bad shape. We just have some significant house cleaning to do. This will not be fast (we’re in the middle of a huge transition shift, so think decades, not years) nor will it be painless. But if we handle it correctly, it could be the biggest jump forward in history.

Can Brands Keep Their Promise in a Digital World?

First published February 26, 2009 in Mediapost’s Search Insider

To speculate on the future of brand advertising is certainly beyond the scope of this column, but I got myself into this mess. I opened the can of worms two weeks ago in the Search Insider by warning that we could be running the search funnel dry. Ryan DeShazer, from HSR, called me on it and asked me what will replace traditional brand building in our new digital environment. Last week, I began the journey by talking about two different types of brands: Brand Promises and Brand Religions. Today, I’d like to paint a hypothetical scenario of where awareness marketing might go for those brands  that are implicit promises. Next week I’ll tackle religions.

Timing is everything

One of the challenges of brand advertising has always been the disconnect between the times in our lives when we’re thinking about a product and the opportunity for a brand exposure. How do you deliver a brand message at just the right time?  The goal of situational targeting became advertising’s Holy Grail. A few channels, such as in-store promotions and well-placed coupons, at least got marketers closer to being in the right place at the right time, but did little to build brand at this critical time. A significant discount might prompt a consumer to try an unfamiliar brand, but the new brand was always fighting the well worn groove of consumer habits. Trying a new product once doesn’t guarantee you’ll ever try it again (reading list suggestion: “Habit, the 95% of Behavior that Marketers Ignore.” )

The disconnect between the purchasing situation and the need to establish brands mentally (literally burn them into our brains) meant marketers played both ends against the middle. They used TV and other branding mediums to build awareness. Then they used direct-response tactics to tip the balance toward purchase when the situation was right. But in between was a huge gap that has swallowed billions of advertising dollars. The challenge facing digital marketing is how to bridge the gap.

Don’t Take Our Word for It
The answer to bridging the gap for a brand that promises quality lies in a few converging areas: the online social graph and mobile computing. Both areas are in their infancy, but they hold the promise of solving the Brand Promise marketer’s dilemma.

If a brand is a promise of quality, we want to hear confirmation of that by someone other than the brand. A brand’s advertising might make us willing to consider them, but we want confirmation of the promise of quality from an objective third party. The Web has made it much easier to access the opinions of others. And, through platforms like Facebook and Twitter, we are now able to “crowdsource” — reach out to our trusted circle of family, friends and acquaintances and quickly poll them for their opinions. But this is still a fragmented, multi-step process that requires a lot of time and cognitive effort on our part. What happens when we weave the pieces together into a smooth continuum?

Keeping Marketing in Hand
Mobile has the ability to do that, because it provides us with a constant online connection. Consider the implications. As we store more of our “LifeBits”  (check out Aaron Goldman’s columns  on this fascinating project) online and rely more and more on digital assistance to make our lives easier, the odds of determining our intent by  where we are and what we’re interacting with in our own “Web” improve dramatically. Our online persona becomes an accurate reflection of our mental one.  With mobile devices, our digital and physical locations merge and through technologies like MOBVIS, we can even parse our surrounding visually. All this combines to give the marketer very clear signals of what we might be thinking about at any given time.

Now, advertising can be delivered with pinpoint accuracy: think of it as behavioral targeting on steroids. Not only that, it can be the first step in a continuum: we get a targeted and relevant messaging, with the ability to seamlessly pull back objective reviews and opinions on any given product, location or service. Going one step further with just one click, we can reach out through multiple social networks to see if any of our circle of acquaintances has an opinion on the purchase we’re considering. If brands are a promise, this allows us to vet the promise instantly. If all checks out, we quickly check for best prices and possible alternatives within the geographic (or online) parameters we set.

In this scenario, the nature of brand-building for the brand promise product changes dramatically. We rely less on manufacturer’s messaging and more on how the brand resonates through the digital landscape. Brand preference becomes more of a spur-of-the-moment decision. Of course, the brands will still try to stake the high ground in our mental terrain through traditional awareness-building, but I suspect it will become increasingly more difficult to do so. Ultimately, brands will try to move their position from one of a promise of quality (a promise easily checked online) to a religion, where faith can play the spoiler.

Brand Promises vs Brand Religions

First published February 19, 2009 in Mediapost’s Search Insider

I wish Steve Ballmer would check with me before he does these things. Last week Microsoft announced it was launching Microsoft-only retail outlets similar to the successful Apple Stores. My intention with this column was to follow up on last week’s column, “No Search is an Island,”  which prompted some interesting comments.

My point was that search captures awareness-created demand, it doesn’t generate it. If you want to continue to harvest from the bottom of the funnel, you need something to prime the top. And many, quite rightly, pointed out that traditional methods of priming the top, including TV, are becoming less and less effective. Martin Lindstrom, in his book “Buy-ology,”   references extensive neuro-scanning studies that showed that millions of dollars are being wasted in ineffective brand building.

So what is effective brand building in the new digital world? What is the best way to prime the pump? As I started to think about that, I realized the answer depends on the nature of the brand to be built. And, as I was chewing that over, the Microsoft story hit my inbox and I realized that it captured the essence of two distinct characters of brand: promise and religion. These two characters of brand occupy two totally different places in our mindscape, and so have to be treated differently, no matter what branding channel you choose to use.

The Origin of the Brand Promise

A brand is a collection of symbols, experiences and associations connected with a product, a service, a person or any other artifact or entity.

This is how Wikipedia defines  brand. But here’s the thing. Brands aren’t defined by Wikipedia. They’re defined by each one of us, in a way unique to us. Ford means one thing to you, another thing to me. Every brand has this same inherent characteristic. All Ford can do is contribute the raw materials used to create the concept of the Ford brand in my mind, but it can’t control how I put those things together.

Originally, all brands started as a promise of quality to the consumer. People were familiar with goods produced by local craftsman. The craftsman was the brand: the more skilled the creator, the higher the quality and the more trust placed in the product. Mass production needed to provide that peace of mind, so brands were placed on products as an assurance of quality. But somewhere in the latter half of the 20th century, brands became more than a promise, they became a religion. And that’s where everything became really wacky. Brands moved from a rational evaluation of quality to an emotional connection.

A Religious Experience

All brands want to become a religion, but not all brands have what it takes to make the transition, at least with a substantial number of customers. GM is a promise, BMW is a religion. United is a promise, JetBlue is a religion. And sorry to tell you this, Steve — but Microsoft is a promise, Apple is a religion.

Promises and religions are judged by different criteria. The customer-product relationships are driven by different motivations. If your brand is not a religion, you can’t suddenly build a church and expect people to worship. I see Microsoft retail stores as destined for dismal failure. First of all, Microsoft products are ubiquitous, so why do I need to go to a special store to find them? Secondly, Microsoft products have none of the religious aura surrounding them that Apple products do. The Microsoft brand never became more than a promise.

Brand Starts and Ends at the Core

One thing that both these natures of brand have in common: ultimately they depend on the values, integrity and effectiveness of the organization that creates the brand. If the brand is a promise of a level of quality, you can’t break the promise with immunity, especially in a digitally amplified world of blogs, forums and buzz. Each of the “promise” brands I used as examples, GM, United and Microsoft, stand in danger of their promises losing all meaning with customers. A promise is only as good as the level of trust you’ve built with the recipient.

But if the brand is a religion, the culture of the organization becomes even more important. Irrational decision factors run amok: the perceived culture of the organization, how the brand label connects with who we are, the social circles it places us it, or the circles we wish it would place us in, the values the company stands for, the exclusivity of the brand. The brand relationship becomes a complex stew of beliefs and emotions. We only make this investment for brands that hold a unique position in our mindscape. We feel we have to get as much from the brand as we’re willing to give it in terms of our emotional loyalty. And if a brand doesn’t reciprocate, it is quickly downscaled from a religion to a passing fancy.

I Am What I Buy (Sometimes)

One of the most ironic things about humans is that we seek to define who we are as individuals by the social associations we make. We stand out by joining groups. And this is a huge motivating factor in the brands we chose to give religious devotion to (Rob Walker’s book “Buying In” is a great exploration of this). Using a Mac puts us in the top 10% of the technically cool population (aka Justin Long). Using Windows means we’re lumped in with the remaining 90% of poor, boring schlumps (aka John Hodgman). Again, not a very compelling reason to seek out a Microsoft store.

This dichotomy of branding becomes important when we look at how brand awareness may be built online. First, you have to be brutally honest about assessing whether your brand is a promise or a religion. It worries me greatly that Microsoft seems to be suffering from delusions of brand religion. There’s nothing wrong with being a solid promise. Many brand religions started there. Personally, I believe brands would be much better off worrying more about delivering on a promise and less about becoming a religion. By the way, it’s unusual for the biggest brand in a category to be the religious brand (Coke is one exception). It’s tough to be unique when you’re following the herd.

But the first step is accepting what you are.

Happy Birthday – Charles Darwin!

darwinToday’s the day. Charles Darwin’s 200th Birthday. And this year also marks the 150th Anniversary of the publication of On the Origin of Species. It’s an interesting comment on Darwin’s personality that although he formulated the theory in his twenties aboard the HMS Beagle, it took him another 2 decades to screw up the courage to publish it. And, in the end, it was only competitive pressure from Alfred Wallace and a not insignificant amount of urging from Darwin’s contemporaries that pushed him to go public with the Theory of Natural Selection. Darwin knew it would be a conceptual bombshell of epic proportions in Victorian England. He wasn’t wrong. Repercussions are still felt today.

But it also marked one of the most significant shifts of scientific thinking in history. As Theodosius Dobzhansky said in 1973, “Nothing in Biology makes sense but in the light of Evolution“. Since the publication, Darwinian thinking has been applied to everything from Artificial Intelligence to Civic Planning to Neural Development to Computer Games. The concept of emergence in complex systems is simple and elegant yet vast in it’s implications. It could well mark the most important  and change inducing conceptual framework for this century.

I find it amazing that today in America, more people believe in the Devil and angels than in the theory of Evolution, according to a recent Harris poll. One of those American’s was recently running for Vice President. According to the same poll, Evolution does now edge out Creationism (47% vs 42%) but is not that far ahead of belief in ghosts (44%) and UFOs (36%). It just shows how beliefs will trump rationalism. Darwin’s theory is a classic example of parsimony: a simple idea that is breathtakingly profound.

So, I offer a sincere Thank You and Happy Birthday to the quiet and gentile biologist that was born 200 years ago today in Shrewsbury, England. Well done Charles, well done.

Macro-Economics and Macro-Emotions

Another interesting article I ran into while cleaning out my inbox. Biometric monitoring research firm Innerscope tracked people’s emotions through vests that capture heartrates and other signals of emotional engagement while they were watching Super Bowl Ads. The objective: to see which ads got the biggest response from people. The results were interesting. The winners were Career Builder and Cash4Gold.

People are scared poopless by the economy and it’s impacting the ads we pay attention and react to. I’ve written before on the macro-emotional trends that dictate everything from the stores we shop at to the searches we launch. And now, it’s even edged in on the Super Bowl. What is interesting is that this is a self perpetuating trend. The economic news scares us, we spend less, the economy gets worse because no one is spending, the news gets worse… well, you get the idea.

Also saw CITI Analyst  Mark Mahaney at Covario’s InflectionPoint Summit in San Diego, who gave us an update on macro economic trends. The short version is..more bad news. He did have a silver lining for search marketers though, which lines up with what we’ve been seeing. Budgets from other channels are migrating into search. Mark gave us a quick and admitedly non scientific calculation of the categories most at risk, Yellow Pages, Print and TV, showed a total potential of $120 billion up for grabs. Of course, total migration is ridiculous. Search doesn’t work unless something is creating awareness, which creates search inventory. But still, that’s $120 B in ad budget that’s going to be scrutinized pretty carefully over the next year or two. It does make you think how much of that might leak into search.

Along the same lines, just got a preliminary glimpse at the SEMPO State of the Search Market Preliminary results. What we’re seeing seems to support Mark’s theory. Can’t go into specifics right now, but if you’re at SMX in Santa Clara next week we’ll be sharing some preliminary findings. I think I’m scheduled on Day One for that session. Drop by if you have a chance.

Google Evolves Back to its Core

First published January 22, 2009 in Mediapost’s Search Insider

Last week, I talked about how the economy will sort out winners and losers even faster. This week, a trio of news releases seems to confirm that search, and Google, in particular, will be a winner. Unfortunately, almost no one will recognize that they’ve won.

Reports out of AdGooroo and Covario show that search is still ticking along better than ever. AdGooroo has Google and Microsoft on track for the best Q4 in history. Apparently, despite the gathering storm, people still search and still click on ads. And, relatively speaking, there’s been minimal impact on search ad budgets. We saw a lot of advertising budgets hold the course for 2009. This was a good news/bad news scenario. The good news was, budgets weren’t cut. The bad news was that planned increases, in some cases aggressive increases, were put on the shelf.

So, are there smiles in Mountain View? Not according to a MediaPost  article from yesterday. Google is jettisoning every piece of financial baggage it can, drastically cutting costs to keep the financial boat upright in advance of the earnings report (due out today). The latest cut? Google’s newspaper business.

What Does It All Mean?

By any sane analysis, Google is doing very nicely, thank you. Jeffrey Lindsay, an analyst quoted in the MediaPost article, expects to see 23% year over year revenue growth, with 14.3% growth expected for 2009. In the rational world, that would be cause for popping Champagne corks and backs bruised from vigorous patting. Given the performance of every other company on the planet, double-digit growth is nothing short of miraculous. But in Google world, it’s an “all-hands-on-deck” disaster. True, Google’s stock price has retreated to levels not seen since 2005 (Psst.. stock tip: Buy!), but the financial engine is ticking along very nicely, thank you.

What is happening is a bit of natural selection and forced evolution at the Googleplex, and although this will be painful, it will be very healthy in the long term. Google is picking its winners and culling the losers. At the same time, its strategists are redefining themselves into a sustainable business model. I suspect Eric Schmidt and CFO Patrick Pichette have stolen a page from Rahm Emanuel’s book: “Never let a serious crisis go to waste.” The economic freefall and irrational pessimism of analysts gives them the opportunity to impose some logical constraint on the overexuberance we saw from Google in days gone past. Google was going to reinvent everything, from advertising to telecommunications to sustainable energy. Now, it appears Google realized there’s more than enough in its core mission (organizing the world’s information) to keep it busy for the foreseeable future. I always thought that the starry-eyed idealism was commendable but not sustainable. Google is growing up.

Think Search is Strong Now? Just Wait…

In the meantime, think for a moment how search has positioned itself. Despite one of the worst economic years in recent memory, Google showed 23% growth in revenues. During the same time period, every other economic metric went into free-fall. Consumer confidence plunged to its lowest levels ever. Retails sales and online sales both hit the skids. Let’s not even talk about home sales. The Dow Jones is down 40% in the past year. The economy didn’t just slow down. It screeched to a halt. But in this same time, search kept plugging through without a hiccup. Did the astronomical growth continue? No, but 23% is pretty damn good in anyone’s books.

People kept searching and clicking on ads. In fact, according to AdGooroo and Covario, they did so more than ever. The only thing impacting search right now is the sheer fear of advertisers who are being assailed on all fronts.

Understandable? Yes. Rational? No.

So, when we hit bottom and start climbing out of this economic black hole, search will have consolidated its position as the most accountable of marketing channels. It will form the basis of a new marketing model: consumer-driven, immediate, measurable, effective, interactive. And Google will be the most powerful player on the block. Best of all, the company can do it without worrying about selling newspaper ads, redefining America’s power grid or colonizing space. All Google has to do is focus on helping people find what they’re looking for.

 

The Importance of Touchpoints – every Touchpoint

I got an iPhone on Thursday.

This post has nothing to do with the iPhone..everything to do with where I got it. Being in Canada, Roger’s is the only carrier that has the iPhone. Roger’s is particularly clueless when it comes to brand integrity (perhaps rivaled only by Air Canada in my home and native land). And this was made abundantly clear to me.

I went to a local mobile store. While the store is run by a licensee, the branding is all Roger’s. For all intents and purposes, it’s a Roger’s store. I walked up to the counter and what appeared to be a 13 year old with a five o’clock shadow who managed the store siddled over to wait on me. His assistant, a petulant female, rolled her eyes and went in the back.

I currently have a Roger’s plan, put in place almost 4 years ago. At the time, I put a plan in place that would cover my somewhat limited data needs. To be honest, I don’t really monitor the bills and my assistant finally showed me one. I hit the roof. Because my device now syncs with our mail server while I’m in Canada (I’m on another plan when I’m in the US) my data traffic has increased substantially. Here’s the details of the plan I was on..get this..25 Megs per month for $25 bucks..and 5 cents a kilobyte for overages! 5 cents a kilobyte! My relatively modest data needs were racking up hundreds of dollars in charges. Was I stupid for letting it go? Absolutely. But obviously Roger’s was perfectly happy to leave me on the stupidest plan in the world and rake in the money. That’s their bad.

So, after hitting the roof, I decided to change the plan. Roger’s plans are still highway robbery, but at least Apple forced them to ease the data plan usury in order to get exclusives on the iPhone. Now..I could get 1 GB of data monthly, plus a limited voice plan, for about $70 a month..all in. I could get an iPhone (which I’ve been salivating over for some time) and still save hundreds a month. I still had to deal with Roger’s, but to be honest, their competition is no better (Twitter recently had to discontinue SMS notifications in Canada because our mobile carriers are uniformly stupid). So, hence my visit to the local store.

I informed Skippy, the wonder manager, of all this and he said, “Well, I can get you set up with the iPhone dude, but I can’t change your plan. You need to call Roger’s to do that”.

“Why?”

The answer was painfully incoherent, but it came down to Roger’s not trusting their licensees (remember, this is Skippy’s take on the situation) and trying to lock me into a package that maximized profit for them and minimized usability for me. Skippy walked me through the routine (with many interjections of “Sorry dude, Roger’s makes us do this”) and, as we were wrapping up, pulled out the check lists to make sure he had done all the things he was supposed to. By this time, I was looking for the nearest exit to escape. Yes..you had shown me how the iPhone works. Yes, you explained all the nickle and dime charges imposed on me. Yes, you explained how Roger’s repossesses my home if I cancel early. Yes, you explained why the writing on the contract might not be what I actually get. Just let me go home.

And then, the final straw.

“Okay..you’re probably going to get a call from Roger’s to make sure I did my job right. I only get my points if you answer that you were ‘definitely satisfied'”

“Sure”

“No..I mean it. That’s the only answer that will give me the score I need. Will you answer that.” At this point, I swear to God, he gives me a photocopied sheet of paper with the right answer printed on it, circled with a check mark beside, just to jog my memory for the call. “You will say ‘Definitely Satisfied’, right?”

At this point, I was either ready to beat my self to death with my shiny new iPhone, or burst out laughing. Skippy was on the verge of tears. I could have launched into an explanation of how this was not the way to ensure customer satisfaction (but the irony is, he does this with every customer and it probably works most of the time. Whoever thought up this approach had done their psychological homework) but that would have cost me more precious hours of my life. I smiled my best paternal, sympathetic older dude to younger dude smile and said, “Sure man.”

Obviously, Roger’s is trying to police the quality of these licensee touchpoints through these ridiculous QA checklists and follow up phone calls, but it made the entire experience bizarre. I think a better approach would be to create reasonable plans, be proactive with existing customers in moving them into the right plans, be more transparent and fair with promotional deals, insist on better hiring practices and provide more value to customers. If they did all these things, their brand integrity could survive the odd fumble in the hands of a Skippy.

Evolution in the Face of Adversity

First published January 15, 2009 in Mediapost’s Search Insider

I am an unrepentant Darwinist, which probably doesn’t surprise anyone who reads my columns on a regular basis. The whole topic of evolution and emergent behaviors in complex systems constantly fascinates me. As Steven Johnson pointed out in his recent book, “Emergence,”  the theme of patterns rising from complexity is  ubiquitous and could well define the 21st century.

The World is a Cruel Place – Get Over It!

One of the most interesting things about evolution is that the pace of evolutionary change picks up in the face of adversity. The more hostile the environment, the faster the wheels of evolution roll and the quicker we adapt. Of course, we do so in a pretty ruthless way. The weak get culled faster. There are no consolation prizes in this lottery. Winner takes all. Richard Dawkins didn’t call genes “selfish” for nothing.

Which led me to apply the rules of biology to our current marketplace. We are going into what may be the most hostile environment for marketers in recent memory. Expect losers to die faster and winners to adapt quicker. But it’s just such an adverse environment that ultimately decides the survival of the fittest. After all, our marketplace is just one more complex system where emergence again plays out.

When the Going Gets Tough

We’ve seen the groundswell of change wash over marketing in the last decade or so. Inexorably, the digital sea change has already started to determine winners and losers, but when ad budgets were fatter, there was more room for everyone. Now, as those budgets are dramatically scaled down, advertisers are forced to make tough decisions.  Channels have to prove themselves against tougher standards. There will be fewer winners and more losers and the evolution of the marketplace will pick up dramatically.

In the end, this will be good for most of the digital marketplace, especially search. Already with our client list, we’ve seen tough budgeting decisions dramatically impact more traditional channels but leave search relatively unscathed.

Scarcity Eliminates Stupidity

Another outcome of the financial meltdown will be that only the smartest marketers will survive. A few years ago, I remember someone from one of the largest advertisers in North America once saying to me, out of frustration with  their marketing program, “We’re so big we can afford to be stupid.”  No more. Today, only the smartest will survive. Size is no longer a guarantee of survival, nor a justification for stupidity, as we’ve seen in a number of particularly painful examples.

Smarter marketers will make smarter decisions, including the painful ones.  They will be ruthless about culling out the losers. Which means chronic mediocrity will become acute failure;  the mortality rate will rise substantially. This will drive our marketing models into the future much faster.

Strategies for Survival

How do you emerge on the winning side of the Darwinian lottery? Based on what I’ve seen, you won’t go far wrong if you concentrate on the following:
–    Accountability for and transparency in delivering on advertising objectives.
–    Understanding the intent and behavior of your target market.
–    A ruthless focus on efficiency in getting the right message to the right person at the right time.
–    Effectively leveraging a fundamental understanding of how the marketplace is shifting due to technology.
–    The ability to map out the most effective prospect touch points, and strong integration between all the channels found at these touch points.
–    The ability to collect and utilize all possible intelligence sources.
–    An ability to brutally assess the reality of the environment and execute quickly and effectively against these realities.

It’s the last of these factors I’d like to focus on for my final thoughts on this topic. In a hostile environment, negativity comes with the territory. The winners will seek out negativity as an important indicator of the true situation and will use it to adapt. In this case, the fittest will see things as they are, not as they wish they would be. In coming months and years, the difference between these two viewpoints will be critical.

Chasing Digital Fluff – Who Cares about What’s Hot?

Marketers are falling over themselves in their rush to the digital landscape. Social media is SO hot! But not as hot as behavioral targeting. And if you think that’s hot, wait till you see what you can do with mobile!

The Digital Dogpile

blow-dandelionMarketers desperately scramble over each other, grasping for a tenuous handhold on some emerging tactic that gives them, however briefly, a fraction of an inch advantage over the competition. New digital marketing directors prove their worth through their savvy of online technology. They cut their teeth on Facebook advertising and put Powerpoints (or, because they’re uber-cool – Keynote presentations) together on the immense potential of the social graph.

Churn is the norm in digital marketing. And marketers are the worst, whipping the industry into a froth because they get all breathless about the latest thing. My inbox gets a hundred emails every single day talking about how freaking cool everything is and how we’re stumbling to figure out the importance of everything. If you’re not an early adopter…scratch that…if you’re not a bleeding edge pioneer, you’re a hopeless loser. The pace of marketing testing and adoptions just keeps spinning faster and faster.

Step Away from the iPhone

Stop! Take a breath. Relax for a few minutes. Get outside and breath some honest to God fresh air. And don’t take your iPhone with you. Because here’s the scoop Kemosabe, all the technology in the world is useless until your audience figures out how to use it. And here’s the nasty little secret. Humans love bright shiny objects but we’re pretty slow when it comes to figuring out how to jam it into our already busy lives. Until that happens, your nifty online strategies will never be anymore than a pointless treadmill jammed on overdrive. You can run as fast as you want, but you’ll never get anywhere.

I do financial analyst calls every quarter and the last question on the call is always the same: anything else we should be looking at? Apparently, technologiosis (or technitis, or technophilia, take your pick) is contagious. My answer is usually the same..wait till people figure out how to use it.

Think about the buzz that’s been devoted to social networks and, more recently, real time search, in the last 2 years. That’s 2 years of foaming-at-the-mouth marketing buzz about how this channel is:

A) the savior of marketing
B) most effective connection with consumers
C) coolest technology without an identifiable purpose
D) biggest waste of time on God’s green earth
E) all of the above

The Geekiest Guy on my Block

Now, I’ll be the first to admit I don’t have a clue how to use social media in a meaningful way in my life. I have a Facebook page, I tweet, I have a Linked In profile, a Trip-It network, just to name a few, making me the geekiest guy I know. Maybe not at an online marketing show, but if you ever visit Kelowna, take a walk with me down my block and I’ll prove my techno-geek status is several Trekkie parsecs ahead of anyone else. I suspect the same is true for you. And you know what? I have no frigging idea why Facebook is important or why I should log into my profile today. It’s cool, but it’s not useful in an every day kind of way. And if I, who spend over 10 hours a day online and have a network of friends and colleagues that span the globe, can’t jam Facebook into my life in a useful way, how is the average techno-pleb going to?

As far as I can see, most of things marketers salivate over fall into the same category..digital candy that tweaks our dopamine supplying pleasure centre but serves no real, sustainable purpose in our lives. This puts it in the same category as 95% of my iPhone apps, 99% of the computer games on my laptop and the Wii my nephew got last Christmas – an obsession for approximately 27 hours, an occasional pastime for another 36 hours, then something we ignore for the rest of our lives.

The one difference, at least in my experience, seems to be teenagers. Most of things that seem to be passing fancies to us do seem to become useful in the lives of the average 15 – 23 year old. But, as I said in a previous post, when you look at what the live of a high school or university student looks like and what they want to do, a Facebook suddenly makes sense. For me, not so much.

An Eyeball is an Eyeball, Right?

So, even given this notorious degree of fickleness, why should marketer’s care? Eyeballs are still eyeballs, right? Even if the eyeballs we’re capturing this week will be completely different than the eyeballs we capture next week. This approach only works if you consider your market a faceless blob of unleashed consumer potential. If you actually want to get relevant messages to real people with real needs, the logic starts to break down immediately.

Effective marketing depends on reliable targeting. And reliable targeting depends on established patterns. And established patterns depend on sustained behaviors. And sustained behaviors depend on things we find useful. Otherwise, we’re marketing via fad, condemning ourselves to spending our professional lives and our client’s ad dollars chasing fluff in a hurricane. Our audience will always be “just passing through” on the way to the next thing.

I Miss Frank Cannon, PI

movies_070708_cannonMarkets have to stabilize in order for us to understand the individuals that make up that market. Also, brand relationships need a stable environment, allowing them to germinate and flourish.

When I was a kid, Kraft always sponsored Cannon. When you tuned in to see William Conrad somehow roll his fat old carcass out of his Lincoln Continental and pick off a sniper 3 miles away on a mountain top with his trusty .38 revolver, you could depend on Kraft telling you how to cook Mac & Cheese in every commercial break. Much as the entertainment value may have sucked (beggars with 2 channels in the Canadian prairies can’t be choosers) you knew Kraft would be there and Kraft knew who they were talking to. The audience had stabilized.

Until things pass through the temporary obsession phase to something that adds real value to our lives, we can’t consider advertising on these channels as anything more than an experiment. The trick in picking the right digital channels is not to look at the eyeballs they’re attracting today, but in how these things might be used in real, practical ways. That will give you an idea of how real people might be using these things next week or next month, when the technoratti have moved on to the latest bright shiny object.

Zappos New Business Model: Have Insight, Will Respond

A story this morning in Adweek about Zappos reminded me of a recent experience with a client. I’ll get to the Zappos story in a moment, but first our client’s story.

This customer wanted to set up a client summit at Google’s main office in Mountain View. Attending the summit were not only their search team but also some highly placed executives. The reason for the summit was ostensibly to talk about the client’s search campaign, but it soon became apparent that the executives were looking for something more. They had specifically asked for someone to spend some time talking about Google’s culture.

Throughout the day, Google paraded a number of new advertising offerings in front of the team. While the front line teams were intrigued, one particular senior executive seemed to be almost snoozing through the sales pitches for Google’s new advertising gadgets and gizmos. It was only when the conversation turned to Google’s business practices that the executive perked up, suddenly taking volumes of notes. It made me realize that sometimes, it’s not only what we sell that has value for our customers, it’s what we are. I chatted about this recently with someone from Google, saying that their corporate philosophy and way of doing business is of interest to people. I urged him to find a way to package it as a value add for customers. While he agreed the idea was intriguing, I think it got relegated to the “polite jotting down without any intention of acting on it” category.

Now, back to the Zappo’s story. That’s exactly what they’re doing, taking their customer service religion and packaging it so that thousands of businesses can learn by going directly to the source. Zappos Insights is a subscription service ($39.95 per month) that let’s aspiring businesses ask questions about the “Zappos way” and get answers from actual Zappos employees.

The service, said CEO Tony Hsieh, is targeted at the “Fortune 1 million” looking to build their businesses. “There are management consulting firms that charge really high rates,” he said. “We wanted to come up with something that’s accessible to almost any business.”

It’s a pretty smart move. There’s no denying we’re going through a sea change in how business is done. And I’ve always felt that there’s a impractical divide between consultants and businesses that are consistently implementing every day. It seems like you can either do, or teach, but not both. Amazing stories such as Apple, Google, Southwest and Zappos have shown that innovation with culture is as important as innovation in what ends up in the customer’s hands. Zappos is trying to blend the two in an intriguing revenue model.