Category Archives: The New Marketplace

The Search Insider RFP Panel: Truer than You Know

First published May 14, 2009 in Mediapost’s Search Insider

Another Search Insider Summit is in the can. And one of the most interesting panels we had was the one put together by Aaron Goldman about the RFP process in search. Aaron picked up from where he, Steve Baldwin and Janel Landis left off in a string of columns talking about the frustration of RFPs and RFQs. Aaron posed the question of whether the RFP process was fundamentally broken to a balanced panel of clients (represented by  Olivier Lemaignen from Intuit and Tom Bombacino from Restaurant.com) and agencies (represented by Tom Kuthy from Resolution Media and Janel from SendTec).

It was a fascinating session. We heard from both sides about the challenge of finding the right search partner. Panel members said the RFP process was overly rigid and bureaucratic, an attempt to avoid risk that ended up putting agencies and marketers into an adversarial relationship right from the start. Tom Kuthy said he often refuses to play the game, either trying to change the rules to a more mutually enjoyable alternative or just picking up his ball and going home. On the client side, Olivier was sure that RFP stood for “Request for Pain.”  Surely, the panel agreed, there has to be a better way.

Where Have I Heard This Before?

I found the panel so enjoyable not because of Aaron’s able “steermanship” — although he was his usually engaging self — but because the stories of pain we heard rang so true to my past experience.

As luck would have it, Enquiro is midway through an extensive webinar and white paper series on organizational buying behavior. It caps off several months of research that involved talking to hundreds of B2B buyers about how they make purchase decisions. And what I heard on Friday afternoon at Captiva was exactly what we heard time after time from these people. B2B buying is a huge pain in the butt.

There’s a sales maxim that is often quoted: “People want to buy, but they don’t want to be sold.” While this is generally true, there’s an interesting variation in the B2B world, which, as vendors, we all live in: “B2B buyers definitely don’t want to be sold, they’re ambivalent about buying, and the only thing that really matters is covering their ass.”

Here’s the Rub

When we buy things for ourselves, there’s usually an element of risk, but also one of reward. Human decision-making balances the two against each other. And we do it by gut instinct. There’s often a degree of rational deliberation, but the engine that drives consumerism is emotion: the thrill of possession vs. the fear of loss. There is a yin and yang to most purchases that carry an element of pleasure. That is why we love to buy. But some purchases, like life insurance, carry no inherent reward. There’s only risk to consider. Buying life insurance is no one’s idea of fun.

Most B2B buying is like life insurance. There’s no reward side to the equation, only risk. If we make the wrong decision, we can lose our job. If we make the right decision, we don’t get a new car, or a TV, or even a new pair of shoes. We just get 10 tons of ball bearings, or a new search agency. Where the hell is the fun in that?  Avoiding risk is all there is to most B2B buying.

Buyers and Doers

Now, some people are occasionally thrilled about B2B purchases. These are the people that get to use the new equipment, or software. They’re the ones that get to work with the new search agency (fully staffed by exceptionally fun people), taking a huge burden off their shoulders. Surely there’s an element of reward in it for these people? Yes, and that’s why they almost never give the final OK to a purchase. They’re too highly motivated to buy, so somebody needs to apply the brakes. In our research, we call the people wanting to buy the “Doers” and the people applying the brakes the “Buyers.” It’s the Buyers who insist on the RFP process. As far as the Doers are concerned, RFPs are a waste of time.

Tom and Olivier were “Doers.” They had little time for the ass-covering pretense of RFPs. On the vendor side, no one likes an RFP. But what we were missing on Aaron’s panel was a “Buyer.” I’m pretty sure the procurement people at Intuit are in no great rush to scrap their RFP process.

The Persuasive Power of Face to Face

First published April 30, 2009 in Mediapost’s Search Insider

Think of the most persuasive person you know. The salesperson you can’t say no to, your mother (guilt always works), your spouse or your six-year-old child.  Now, imagine if you had never met the person in person and they were trying to persuade you over the phone, or by email. Would they be as persuasive? No. Persuasion just don’t work as well if you’re not face to face

Hardwired for Face to Face

Robert Cialdini wrote an entire book on the “Psychology of Persuasion.” He explains the hot buttons that get pushed, moving us toward doing something we might not otherwise have done. But if you look through all the persuasion buttons, one thing is true: they all work much better when you’re face to face.

Let’s take just one: reciprocity. Reciprocity, you scratching my back and me scratching yours, is a gut instinct for us. In fact, many of our treasured social institutions, including economic markets and the justice system, are based on our emotional connection to the concepts of reciprocity and fairness. Every single major faith has its own variation of the Golden Rule, which is reciprocity enshrined. But reciprocity is far more potent if the social conditions are set up in person. Political scientist Robert Putnam calls this “thick trust” as opposed to the “thin trust” represented by anonymous rules, law and mores. Study after study shows that even a simple act of giving makes the recipient feel indebted. Something as basic as asking how someone’s day is going makes one feel indebted and more likely to give something back. It’s one of the most powerful persuasion buttons you can push.

Another inherent human trait is empathy. We have an amazing ability to pick up on the emotions of others. We have a special type of neuron, called mirror neurons, that seem to be the seat of empathy. Mirror neurons explain why emotions can be contagious, why monkeys that see tend to be monkeys that do — and why, when you’re talking with someone, you find yourself subconsciously mimicking their actions or even their accent. Mirror neurons aren’t found in every animal. So far, they’ve been discovered in just a few primates, including us humans. Mirror neurons may be why the more you like someone, the more empathetic you are, leaving you more open to persuasion

What This Means for Selling Online

Somewhere along the line, face-to-face contact seemed to be considered superfluous in our new online world. We moved to virtual sales, commerce transacted at a distance, electronically, with nary a handshake, a wink, a smile or an eye roll to be seen. In theory, it should work, but in practice, it leaves a lot to be desired. We were not designed to communicate electronically. We can and do adapt to it, but like any instrument designed for a specific purpose, things just work better when we do what we were made to do. And we were made to connect with others in person.

We’re in the middle of an extensive research project exploring B2B buying and decision-making, and this lack of human contact in online sales strategies proved to be a huge obstacle to success. B2B buying is all about building trust and eliminating risk. It’s pretty difficult to build trust with someone you’ve never met. That’s not to say that electronic communication isn’t effective, but the social foundations have to be built in person. Research has shown that on Facebook, the vast majority of close “friends” that people keep are all people they know and have met face to face. You can find ideological common ground with someone over the Net, but the bonding happens when you can look in their eye and read their body language.

Face to Face in Florida

This is particularly timely with the Search Insider Summit coming up next week. I’ve found in my 13 years in this industry that my enduring friendships are always forged face to face. I knew of David Berkowitz or Aaron Goldman prior to meeting them, even admired their points of view, but I didn’t create a relationship with them until we spent some time together at a Summit. Many of the industry relationships that remain important to me were first forged at an event. Many of the most positive comments we consistently hear from the Summits are about the opportunities provided to bond and network.

Last week, I said one of the most important things we as search marketers could do was to focus on what happens after the click and improve the onsite experience. This week, I add to that. Also remember that trust is built face to face. Look at online as a way to extend and leverage those face to face encounters, but don’t fall into the trap of thinking a cold mouse is a substitute for a warm handshake.

More on the Confluence of Spring Break

First published April 2, 2009 in Mediapost’s Search Insider

Starting in the 1400s, an explosion of exploration came from Europe called the Age of Discovery. Prior to that, the world was a much smaller place. In fact, the end of the world was reckoned to be somewhere past Cape Bojador in West Africa. But during this time of exploration, the boundaries of the world were pushed back dramatically. By the end of the 15th century, Bartolomeu Dias rounded the Cape of Good Hope, Vasco da Gama sailed by this route to India and Christopher Columbus had sailed to the new world. Just 20 years later, Ferdinand Magellan would become the first to circumnavigate the globe. In just over 100 years, the world as we know it was discovered. And it was all due to one person: Prince Henry the Navigator.

Meet Prince Henry

Prince Henry was born in 1394, the third son of King John I of Portugal. At the age of 27, his father made him governor of the province of Algarve, in the south of Portugal (coincidentally, where I spent my spring break family vacation). Although he became known as Prince Henry the Navigator or Seafarer, neither is very close to the truth. Prince Henry spent little time on a boat. Henry was really more a very capable administrator. He built the foundations that would propel Portuguese explorers to explore the world, expand the empire and bring untold wealth back to Portuguese shores. Henry set in motion a chain of events that changed history.

Henry accomplished this through four tasks:

  • He convinced Portuguese patrons, primarily the very wealthy Order of Christ, to provide a consistent source of funding for discovery, allowing for ongoing exploration.
  • He ordered the development of the much lighter and faster caravel, which allowed for more precise coastal navigation and faster crossings. It became the preferred vessel for Portuguese exploration.
  • He created a center for navigational education and cartography at Sagres, where the Portuguese developed the techniques to allow them to sail much further away from land, something that almost certainly would have resulted in disaster before this.
  • He created a “revenue model” for exploration, convincing his family of the benefits of opening up the spice and incredibly lucrative slave trade (moral judgments aside), all flowing into the nearby port of Lagos (where we stayed during our vacation).

In short, Henry created the conditions for success that lead to the explosion of discovery. The desire to break the Portuguese stranglehold was why Spain financed Columbus’s journey (rumor has it that Columbus spent time at Sagres). And the later period of English discovery was also precipitated through competition with Portugal and Spain. And it all began with an effective administrator.

Taking a Lesson from History

Now, let me draw together my three disparate ideas that I started last week, (although I’m sure you’re already well ahead of me):

  • In “Outliers,” Malcolm Gladwell argues that success isn’t pure chance. It’s a combination of conditions that can be planned and set in place. Certainly, Vasco da Gama didn’t luck into his discovery of the route to India
  • Ray Kurzweil (whether or not you agree with his vision of the future) shows that technology can release us from the constraints that threaten our world, including disease, poverty, environmental damage and even death.
  • And Henry the Navigator provides historical proof of the value of a visionary and capable administration.

We who are fortunate enough to find ourselves in rich, developed countries have enjoyed a disproportionate share of success. Even during the current financial turmoil, we are still, by far, the wealthiest and most advantaged people on the face of the earth. But we cannot move forward with a misbegotten sense of entitlement or by taking our success for granted. We have to put the foundations in place that will lead to success in a new and dramatically different world. We have to follow in Henry’s footsteps, building the foundations that will lead to discovery and expansion of our world. If we don’t, someone else surely will. In fact, they already are. To the East, exactly those foundations are currently being put in place.

We need an administration that is capable of building this foundation. And here, we can learn a lesson from history. This administration must:

  • Realize that discovery is an incremental and imperfect process. For every success, there will be many more failures. But success is impossible without those failures.
  • Be bold and consistent in guaranteeing funding for technological discovery.
  • Be wise in balancing the moral dilemmas presented by technology. The good of the many must prevail against the knee-jerk reactions of the few.
  • Be prepared to completely reinvent our concept of education, because we are being quickly left behind.We have been blessed with huge advantages and the future is ours to lose, but there is nothing guaranteed here. In the 1300s, Portugal was a small and relatively insignificant player on the European landscape. But, because of one man’s vision, they ruled the world just one hundred years later. It was an era of discovery and opportunity that was unequaled in history. But it pales in comparison to what awaits us.

Looking for the Future? Look for Chaos, not Stability

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

This week, someone asked me about sustainable business models in the Internet.  Earlier the same day, another person asked me about defensible models. Both questions left me perplexed. I wasn’t trying to avoid them. I just didn’t know how to answer. So, some 48 hours later, I offer this column as a somewhat belated response. It isn’t an answer, as I’m still just as perplexed. But now at least I know why.

So why are people asking about defensible and sustainable business models on the Internet? Well, if there’s one thing the Internet has done, it’s brought sky-high valuations back to earth. So, investors doing what investors do, they’re suddenly looking for “bargain” companies that have mature business models and trial-tested management.  Hence the quest for sustainability and defensibility. Reasonable, right? It certainly makes sense if you’re going shopping for a private equity fund. But in the last two days, I’ve decided it’s almost exactly the wrong question to ask. It’s like looking for dry ground in a tsunami: it may give you some temporary peace of mind, but don’t count on it to last long.

The Quarter Century Electric Switch

Nicholas Carr’s book, “The Big Switch,”  ties the development of the Internet to a previous discontinuous innovation, the electrification of America. In it, he provides a fascinating recount of the unsung visionary who laid the foundations of the power grid we take for granted today, Samuel Insull.  Insull started as Thomas Edison’s clerk, but soon split with his mentor in his vision of the future of electricity. Edison, for all his brilliance, was thinking too small. He was concentrated on building individual DC generators for industrial applications. Insull saw the promise of a ubiquitous power supply, centrally generated and then distributed. It is Insull, not Edison, who is responsible for the power receptacle that probably sits no more than 10 feet away from you right now.

In the very earliest days of electricity, one would have been a fool not to choose Edison as the forerunner, the candidate most likely to carve a business out of the new frontier. His innovations harnessed electricity and made it usable.

But if you had bet on Edison to provide a sustainable model, you would have lost. It was Tesla’s AC standard, not Edison’s DC, that proved to be the one adopted. And it was Insull’s vision of electricity as a utility that changed our world.

The idea was simply too big for one man. And it was bringing all the implications of that idea together that proved to be the true agent of change. It launched a shift in American (and global) lifestyles that Edison never envisioned.  But from the initial stages in the final years of the 19th century, that shift took three decades to be fully realized. It took the building of new infrastructure, the development of new industries and the adoption of certain ways of doing things. It took thousands of visionaries, not one, to realize the significance of harnessing electricity.  Imagine then the impossible task of finding a defensible, sustainable business model for electricity in 1895. In hindsight, it’s clearly laughable to even attempt such a thing. But today, we’re trying to do exactly that with the Internet.

Fragmented Functionality

There is one big difference between the Internet and electricity. An electrical appliance is an electrical appliance. Its functionality is usually independent. A blender doesn’t become more useful if you also plug in a toaster. But the Internet lives on mashups and APIs. Apps can become exponentially more powerful if they plug into other apps.

Today, the Internet is a fragmented place. Functionality lies across the grid in a million different shards and chunks. Some of these are larger than others. Search is a particularly large one. And today, we’re just beginning to explore how all this functionality can come together.  The infrastructure has been laid. The grid has been built. Now it’s time to start plugging in apps and see how they can work together. If you think the last decade brought discontinuous change, wait til you see what the next decade has in store. We’re just getting ready to take the Net for a spin and see what it can do.

I’ve come to realize that there’s no such thing as revolutionary change. It only appears so when you look at it in a historical perspective. Instead, there  are tipping points of incremental change. Every supposedly revolutionary development was built on the back of hundreds of other developments. Cumulatively, they indeed change everything, but each development could never have happened without its supporting cast. It wasn’t Edison’s development of the incandescent light bulb that lit up America. It was a thousand developments, by Faraday, Golvani, Ohm, Volta and many others. Each one pushed us closer to the tipping point. When we reach it, we step forward, never to look back.

Back to the Original Question

To return to the beginning: What is a sustainable, defensible business strategy online? I have no idea. I don’t think such a thing exists. For all the excitement, for all the promise, there are no sure bets. The two concepts are incompatible. You’ll have to pay your money and take your chances. To cause investors even more discomfort, almost all innovation comes from small start-ups. They far outpace the level of innovation coming out of corporate America. So if you’re looking to capitalize on the growth of the Internet, don’t look for stability. It’s the wrong place to look.

Brand Religion: A Reading from the Book of Skittles

First published March 5, 2009 in Mediapost’s Search Insider

There’s something about Tuesdays. Just when I’m starting to think about what my Thursday column is going to be about, something hits my inbox that seems freakishly timely. This time, it was David Berkowitz’s ode to Skittles.com. My intention was to write about brand religions playing out online, and here, in all its gory, real-time splendor, was a parable made to order. It would be unseemly, not to mention unfaithful, not to read the signs from above and pick up this story thread so graciously thrown in front of me.

Now, let’s get the Skittle Scuttlebutt out of the way, as more has transpired since the last time David spoke. As David said, Skittles.com is no longer a site, but a Flash navigation bar that hovers over live feeds from other Skittles-oriented online destinations. Originally, the home page was a live Twitter Feed, but the ignoble masses had the temerity to use the Skittles name in vain, so that idea was scuttled and the TweetFest was moved back to a section called “Chatter.” Now the home page is a feed of the Wikipedia entry (which has been updated to include the story, so it’s like a never-ending feedback loop). You can also visit the brand’s Facebook “Friends” page. There are some massive usability issues, but that aside, nobody can scoff at Skittles for a lack of courage.  It remains to be seen how successful this is, but the fact is, almost 600,000 fans have signed up on Facebook, and the brand has generated huge buzz.
So, what is a parable for, if not to learn from? And here are 10 commandments for every brand who fancies themselves a religion, if they have the courage to go where Skittles has gone:

1.    Thou Shalt Not Expect Everyone to Believe. As was shown in the Skittles case, if you choose to live by the Social Media Sword, understand you can also die by the Social Media Sword. Opening up the conversation to your believers also means you open the doors to the non-faithful, who will take every opportunity to express themselves.

2.    Thou Shalt Not Build Your Own Churches. Believers like to build their own churches and not have the brand build it for them. This is almost never successful. Skittles is trying to find middle ground by using their site as a shortcut to a few online destinations that help define the online image of Skittles. It’s an interesting move, but I believe it will ultimately be a short-lived one. For one thing, it’s confusing as hell.

3.    Thou Shalt Have No Illusions of Control. If a brand goes down this path, they have to accept (everyone, repeat after me — and that means you, Mr/Ms CEO) that by opening the door to the masses, they abdicate all control. If Skittles.com turns sour, all Skittles can do is pull the plug on their official endorsement. The buzz will outlive the campaign and take on a life of its own.

4.    Thou Shalt Understand the Web is a Fragmented Place. What is interesting about the Skittles experiment is that it’s a tentative acknowledgement that the sum total of a brand lives in many places online. The idea of defining the boundary within one Web site is long dead.

5.    Thou Shalt Honor Thy Product. You have to have a pretty damn popular product to take this step. There’s probably nothing more innocuous than Skittles (who could hate a little fruit candy?) and yet some still managed to spout bile all over this little social media stunt. The more beloved the product (and the company behind it), the more secure you can be in letting your fans be your spokesperson.

6.    Thou Shalt Accept What One is Given. If your brand builds a devout following, your customers will take it upon themselves to generously share more than you ever expected about what the brand is, what it isn’t and what it should be. You have opened up more than a dialogue; you have embarked on a weird and wonderful partnership with your customers. Embrace this or lose it. Consider the story of Timberland, who had no idea that they’d become the chosen footwear of hip-hop. At first they disbelieved it, then they ignored it, then they fought it — and finally, they embraced it. Today, you can customize your Timberlands in pink and purple with your own monogrammed tag and customized embroidery: a fully pimped pump.

7.    Thou Shalt Know Thy Flock. If you’re going to intersect your faithful where they live, you have to know something about them. David wondered if Twitter was really the best social media choice for the Skittles target market. If your brand has already established online places of worship, spend some time in stealth mode and get the lay of the land before you go public.

8.    Thou Shalt Listen. Online gives you thousands of listening posts to get the pulse of your brand. One example I saw this week: the iPhone app Dial Zero. It’s a nifty little assistant that gives you tips to avoid the dreaded voicemail dead zones for over 600 companies. A quick look up and you have tips to connect with an actual live person. But what’s even more interesting is that it shows real-time comments from people who’ve recently called.

9.    Thou Shalt Live Up to Your Flock’s Beliefs. With devotion comes responsibility. In return for their brand loyalty, they will hold you to a higher standard. They have emotionally invested in your brand, so if you disappoint them, it will leave a bigger scar than just a passing frustration. Hell hath no fury like a customer scorned.

10.    Thou Shalt Count Thy Blessings Every Day. Brand evangelism. Brand loyalty. The willingness to pay a premium. An unwavering devotion untouched by the millions in advertising spent by your competitors. A much lower cost of acquisition. And millions of pages of customer-generated content. All brands should be so lucky.

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.

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.