The Changing Face of Digital Media & Marketing : efficiency

Houston Interactive Marketing Association Presentation

Scott Berg — Thu, 02 Jul 2009 00:46:00 GMT

(Please visit the site to view this media)I had the opportunity to present to the Houston Interactive Marketing Association (HiMA) a couple of weeks ago. This group is really a fantastic organization dedicated to teaching and providing guidance to teh Houston marketing community. We had a very lively discussion with 200 or so marketers from the Houston area. I've attached the presentation and video if you'd like to take a look.

Scott

(Please visit the site to view this media)

Moving from Marketing/Advertising Campaigns to Ecosystem Management

Scott Berg — Sun, 22 Mar 2009 18:54:00 GMT

No question the marketing and advertising industry is going through a seismic shift. And although the main-line and industry press continues to focus the headlines on declines in budgets and the shut down of newspapers – frankly, I believe the shift is much more fundamental and reduced budgets and newspaper shutdowns are merely symptoms of this shift.

As marketers many of us have focused our efforts on two fundamental efforts:

Brand and
Demand Generation

We first got them to fall in love with the brand and then cycled them through the purchase funnel to the ultimate sale.

However, as content, access and user involvement have become more and more prevalent, it’s time for us to rethink our strategies. We need to connect, engage and listen to customers at every single point along the “relationship” curve.

Point A: Discover – the brand

Point B: Find – find the brand or product

Point C: Confirmation/Validation – checking with others to gain confidence to purchase

Point D: Transact – buying the product

Point E: Support – providing outstanding support post sale

Point F: Feedback/Share – listening to customers about what they are sharing with others

When you look at the entire purchase or engagement funnel or as I like to say “the ecosystem” – you fundamentally are forced to look at how you deploy your marketing funding based on what your customer is doing, not based on media type. In fact, you might necessarily deploy media dollars as much as create engagement platforms, communities, forums, listening tools, metrics platforms, etc.

So start looking at your customer ecosystem…. See where you’re strong, weak, etc. and begin improving and strengthening the system – based on customer requirements vs. a traditional or pre-defined media mix.

Scott

What To Do About the Meltdown in Media

Scott Berg — Mon, 12 Jan 2009 01:44:00 GMT

Apocalypse is one of those words that I remember from bible study as a kid. The word itself just sounds scary – even if I didn’t know what it meant it would freak me out. But it seems everyday we’re hearing about media companies making massive layoffs, shutting down publications, cutting costs and the like. Even the agencies are cutting staff because of client budget cuts and the need for leaner expenses on the income statement.

So as a client what should you do? Here are a couple of thoughts:

Lock in Low Prices. Just like the stock market – you buy low and sell high. So why not negotiate hard with media suppliers for lower CPM’s and lock those prices in for 2-4 years and with the ability to further reduce if thing get worse. When the economy does turn-around, you’ll get a higher ROI aka make more money.
Renegotiate. Why not renegotiate your contracts with agencies and suppliers? Think about it… if your media/marketing spend has gone you’re paying more fixed and variable costs as a % of media/marketing spend. So renegotiate the costs and contracts in order to keep those “non working dollars” as low as possible (or at least even). While you’re at it, why don’t you put in some clauses that put some of the supplier/agencies income at risk? If your company or campaigns do well… the agency does well.
Step up the SEO. Get your webmaster to increase the SEO terms on your web site so you’re not paying for terms that your own website should drive.
Fish Where the Fish Are. Dig deeper into your database and determine who those best customers are and start using a Recency, Frequency, Monetary Value model to determine who is likely to response. To learn more about RFM I recommend you read the book “Libey and Pickering on RFM and Beyond” by Don Libey and Christopher Pickering.
Get Closer to Your Customer. If you haven’t been talking to your customers – get to it and start. If you’re not talking to them, odds are your competitor is.
Listen, Listen, Listen. Do I need to say more? If your customers are telling you they want x from your product… give them x. Stop listening to 30 person focus groups and start listening to the entire web, including blogs, social media, etc. There’s a number of software available… many free some that you have to invest in. Check out a product from a company called Aubice.
Look Deep into Your Organization for Recommendations. I’ve often found the best ideas from the deepest parts of the company. So start having lunch and coffee with a new group of folks and start asking them for their ideas.
Get Even Leaner! You’ve probably had to cut budgets, perhaps even some headcount… but start eliminating or reducing costs. Couple of areas to think about: Ad Serving Costs, Agency/Supplier Costs (see points 1 & 2), get rid employees who are deadwood and replace them with many of the outstanding professionals looking for employment, conferences (do you really need to go?), stop traveling all over kingdom come and use technology and the good old phone.
Shift Channels. If your customers costs are getting out of hand – for instance they’re calling your call center a ton…. Perhaps you should start to direct them to the web where they can self serve themselves.
Lead. If you’re not stepping up to make the tough decisions… start. If you’re planning on “keeping under the radar” until the current economic environment turns, then I’d recommend you refresh your resume.

Scott

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

Twitter

Scott Berg — Wed, 08 Oct 2008 19:59:00 GMT

It seems new media technology is cropping up daily. Many will fail, a few will succeed… the key is to try them out and see what any applicability they might have from a marketing or end user perspective. So my latest test is Twitter.

Check out the article by Laura Lake describing in more detail what Twitter is and her thoughts on marketing applications, etc.. My quick description of Twitter “a quick way to keep others interested in the small details of your life.”

So, I’m officially “twittering” – telling the mundane details of my days. Here’s my initial thoughts on twitter:

Trendy – might be kind of fun, but does anyone really care that I just had a Pepsi, are doing my email, or went to bed? People might be interested in what a celeb is doing, but I have no problem saying “my life’s a bore.”
Personal – seems the details of my life, might be of interest to my wife and closest friends (although – my wife is far to busy to really care what I’m doing) and my parents frankly we’re probably the happiest people on earth the day I moved out… so they really don’t care either.
Marketing – I’m not sure you can create a “brand” via Twitter. It might be something to inform people of price cuts on a certain product, when a shipment of something comes in, etc.
Cost – I wonder if the costs and time associated with trying twitter from a marketing perspective make cost/benefit sense.

OK, these comments are where I sit today… who knows my opinion might change. I’ll keep you updated.

Oh, if you’re interested in when I do go to the vending machine, etc. feel free to follow me at;

http://twitter.com/scottberg

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

“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

The Subservient Chicken – Still Ticking

Scott Berg — Wed, 30 Jul 2008 20:02:00 GMT

So I was just stumbled upon my link for Burger King’s Subservient Chicken. You remember this one… the online site where you can ask the chicken to do something and it obeys your command. I believe this is the what parenting is suppose to be like, but I have yet to discover it.

Although this gimmick is probably 3-4 years old (at minimum), BK continues to support the initiative financially – I assume it’s still popular and rings up the clicks daily. And you know it can’t be that expensive… but I continue to be amazed at so called “investments” in major initiatives (e.g. SecondLife, etc.) which seem to fizzle out in a matter of days. Yet, the chicken keeps plugging along.

So if you haven’t visited the chicken – stop by and say Hello!

http://www.subservientchicken.com/

Scott

The Momentum Effect

Scott Berg — Tue, 01 Jul 2008 14:51:00 GMT

The Momentum Effect

I encourage all of you to take a look at the video and the book “The Momentum Effect” by Jean-Claude Larréché, the Alfred H. Heineken Chaired Professor of Marketing at INSEAD. This is a fascinating way to look at driving the market, growing market share without having to increase investment (e.g. getting efficiency out of advertising and marketing in general). Value creation and innovation need to be considered by all CMO’s as we move forward… emotion has a critical impact on the customer and how we satisfy their needs and requirements. Enjoy!

http://knowledge.insead.edu/TheMomentumEffect080607.cfm?vid=52

Scott