The Changing Face of Digital Media & Marketing : Messaging

CMO’s Annoyed by Agencies and Networks

Scott Berg — Wed, 22 Oct 2008 17:09:00 GMT

Over the past couple of days I’ve received a number of phone calls and emails regarding presentations made by Gary Elliott, VP-Corporate Marketing and Michael Mendenhall, our CMO.

I’d like to add a few thoughts in 2 separate posts… first let’s talk about the article in AdAge regarding the ANA panel that Gary Elliott sat on.

Gary Elliott was quoted in the article in a couple of areas:

“The overall message, I would have to say, with HP, is that I don't think any of these [agency] relationships are satisfactory enough that we would continue them without having some degree of experimentation," said Gary Elliott, VP-corporate marketing at Hewlett-Packard. "We've been experimenting with different agency relationships where we're looking at agency partners and vendors in ways that connect them loosely with each other. We're looking at models where we have everything with one of our key partners." What's lacking in agency relationships now is speed to market, Mr. Elliott said. "I don't think with our current system we're achieving that. ... We're going to pilot a number of different relationships where we go direct with media companies." My thoughts: 1. Business Model – as I’ve blogged about before the media, marketing & advertising business model is changing. It’s not all about advertising and media anymore. It’s about developing projects that have mutual benefit between two companies. I point to the deal HP just did with MySpace as a great example of this. Agencies are still focused on creating ads and placing the media. And for some companies, that’s what they want them to do. But for larger advertisers we must have more. Every single agency presentation I’ve sat through always shows how the “campaigns” they’ve worked on generated revenue. And all of us in marketing say we generate revenue for the bottom line through branding and direct…the problem is there is more to branding and direct than ads and media. A company the size of HP with distinct businesses and different needs for each business requires us to think creatively and continue to explore the best way to structure our agencies to meet the needs of each unique business. 2. Technology -- And what about the way we transact business… we still use an antiquated system to do the upfronts each year…but search terms are being purchased via an auction model every single day through Google and Yahoo! We must learn how to utilize new forms of technology to drive and increase our speed to market. We no longer market 8 hours a day… our customers are doing business/choosing brands/making purchasing decision 24 hours a day. And they’re utilizing all different forms of technology to do it – from mobile, interactive TV, the internet, search, etc. And believe me, I’ve experienced the pain when a media network incorrectly distributes online creative or radio/tv spots in the wrong place or within inappropriate content. These “mistakes” impact our brand in the consumer’s eye which ultimately makes our job of selling product harder.

Relationships – the world is built on relationships. Look no further than linkedin.com, Facebook.com, or MySpace.com to understand how important relationships are to folks. It’s my job to ensure that HP is given an opportunity to look at unique ideas from media partners before any other competitor and/or advertiser in the marketplace gets a chance. And that’s done by having strong, solid relationships with the major media players in the marketplace.

Hey, you might not have liked what the Advertisers said on the panel… but remember this…it’s them and other CMO and marketing professionals inside companies who have to justify budgets and drive revenue to executive management and ultimately the company shareholder. Try sitting in that chair for while and I guarantee you’re view of the world will change. Scott

The Latest on the “Berg Electronic Hacienda”

Scott Berg — Mon, 29 Sep 2008 13:40:00 GMT

You guys have heard me talk about my experience with Facebook and Linkedin before, but it’s been while so I thought it’s time to give an update.

I refer to them as my Hacienda’s -- my motto – come on in, sit a spell, take a look around, talk about what’s on your mind.

Alrighty, let’s get down to the latest details:

Facebook – I now have 155 friends. What’s happened recently is I’m getting more “personal” friends connecting with me, vs. business partners as I did when I first started. So I’m now connecting with folks from high school, college, social organizations, etc. But still the majority of the friends are business side. My profile hasn’t changed much – still very business focused, but I have been uploading some family photos, etc. And I’m getting more comfortable in talking about personal stuff vs. business speak. As a marketing medium… lots of info on people, but I don’t see it being used for targeting as much as I’d originally thought. And the ads that are being served up to me aren’t at all relevant. The social side of gathering people together I believe still has promise, but I haven’t seen great examples as yet. Also, don’t know about you, but I don’t like the new format – too clunky/disjointed and my time “on line” with the site I’m sure has fallen off because of this.

Linkedin.com – Amazingly I have 611 connections. All of them are business. I recently had a presentation from the linkedin.com sale team and I see this site really starting to mature into a viable advertising/marketing vehicle. First, they can target on any of the info you put into your profile – so the ads I receive are very targeted and relevant to me as a user. Second, I like the questions section on the site – where folks can help others/answer questions, etc. Great for connecting on business development, etc. Third, surveying on the site is coming into maturity… this is where a question is poised by a company or well know business executive (targeted naturally) – a great tool to help with all sorts of things – product design, image management/metrics/idea generation, etc. The area that I believe needs development is more relevant applications that can be added to your page.

Your thoughts as always are what this is all about… so feel free to comment!

Scott

Customer Service During Hurricane Ike

Scott Berg — Tue, 23 Sep 2008 21:37:00 GMT

Having lived through a few hurricanes now I can personally tell you the destruction we Houstonians have seen with Ike is incredible. With a great deal of luck my family didn’t suffer any harm and although we had trees down, water, sewer and electricity issues the overall situation is good. A tragedy like this makes you appreciate those friends and colleagues you know – and I’d like to thank all of you who have emailed and phoned to check in on us… it is greatly appreciated.

I’ll tell you of a FANTASTIC experience I had and it has a marketing and customer service angle to it. I’m an Allstate customer – have most of my insurance coverage with them. What I found amazing is that within 24 hours after the hurricane hit, I had voice mails on my cell phone & work number regarding the claims process. For instance, the message instructed me who to call, the number, that they were overstaffed to help answer the increased calls, etc. In fact, I didn’t even need to have my policy number they said they’d find it for me.

And when I called…. I waited a mere minute or two before I was pleasantly greeted by a Customer Service Rep. Wow – what an experience… proactive help and what do you bet I’ll think twice about ever switching insurance based on that proactive marketing and assistance.

We should all look at these types of “digital” solutions to assist our customers… from the use of email, text messages, etc. to drive better experience.

Congrats to the Allstate Customer Service and Marketing Teams!!

Scott

“TV Networks Should Replace Agencies” – Are You Nuts!

Scott Berg — Tue, 09 Sep 2008 17:20:00 GMT

Sorry it’s been a few weeks since my last post… my family and I took some time to visit the great state of Maine…. specifically Bar Harbor, what a great place I highly recommend it for a relaxing and fun filled time.

That being said, I just viewed the latest 3-Minute Ad Age post from Brian Reich the author of “Media Rules” who believes the future of advertising is the elimination of ad agencies between clients and television stations. He claims ad agencies get in the way and between the client and the television stations and somehow muddy the water in the messaging.

Now in all fairness, I haven’t had the opportunity to read Mr. Reich’s book so he might have some additional points which I’m not privy to, however, I do have some initial thoughts.

What Business Are TV Stations In? Easy answer for me – to sell time to advertisers in order to cover costs of programming, salaries, utility, rent, etc. etc. What’s left over is called profit and that usually goes to shareholders. Yes, TV stations do unique programming things to keep the users engaged with the content or the commercials, so they do have a creative element.

What Business Are Ad Agencies In? This ones a bit more complicated but I’ll list the biggies…

Branding
Communications
Strategy
Program Development
Audience and Research Management
Media Buying/Planning and Idea Creation
Integration
Traffic Cop
Logistics
Events/Tradeshows
Forward Thinking
Oh, and that little thing called Creative

Who Should Do What? I have news for Mr. Reich…. I meet with media folks all the time… guess what every single presentation says “we’re #1” – we beat our competition across the board and we know our audience. And guess what…. each one of them is right, but it depends on the lens you look through.

Agencies are a critical part of the entire marketing eco-system… I dare say that no TV network could produce the level of creative spots that Goodby Silverstein & Partners has for HP.

I do agree with Mr. Reich that the customer is the most important part of the equation, but it’s the client who needs to manage the component parts to meet the goals of the company/campaign/initiative/communication. Do we do it perfectly, heck no…but we’re trying like you wouldn’t believe.

To get another view of the topic, I’d suggest picking up a copy of “Kellogg on Advertising & Media” from Bobby Calder….I’ve spoken about it before, it’s a compilation of a number of business and academics who describe thoughts about the future.

I’ll leave you with this thought…. My Mom’s a pure Saint (I know everyone says it, but she really is) and I love her more than she’ll ever know. She gave birth to 2 sons some 40 odd years ago, but that doesn’t make her qualified to take the place of a doctor and start delivering baby’s on the side. I think we still need the ad agencies to help “birth” our strategy and marketing communications.

Love your thoughts on this….

Scott

If A Client Created a Stop Sign....

Scott Berg — Tue, 22 Jul 2008 16:05:00 GMT

I had this video sent to me the other day... and after laughing for 10 minutes.... I realized it also shows the reality of the sometimes insane situation we as clients put our agencies and partners through on a daily basis.

Embed:

' name=embed_code>

Scott

Jumping the Shark with Mobile Text Messaging

Scott Berg — Wed, 09 Jul 2008 19:48:00 GMT

The phrase “Jumping the Shark” is a popular phrase used in the US… basically for those of you not familiar with the phrase…. It was made popular from the hit TV show Happy Days, specifically around when Fonzie jumps a shark. It marked the peak and eventual decline of a favorite TV show.

Customize

Embed:

' name=embed_code>

Well, I’m using the term as it relates to mobile text messages. Today, while in the middle of a meeting I hear the familiar ring of a text message… naturally, my wife is the only one who uses this service as she knows it’s a quick and reliable way to reach me. So immediately, I look at my cell phone and low and behold I read:

“Don’t miss the Energy Sector Rally …. Buy (X stock) at $X.”

I then realized, Text Messaging had “Jumped the Shark” and it’s now just a matter of time when I can look for all sorts of text messages to bombard my cell phone selling: mortgage refinancing, hot stocks, insurance, etc.

As marketers we must be vigilant in the proper use of mobile text messaging… the last word we need to hear from consumers is “text spam.” So if you haven’t already, take a look at the Mobile Marketing Association’s website to get the latest info.

Scott