Drinking From The Fire Hose

Tuesday, October 27, 2009 by Tom Kirszenstein

I've been hearing the phrase "Drinking from the fire hose" more often than usual lately. The curious thing is that it's coming from Interactive Media Professionals (including myself), as much as from end users. With the exponential growth of the Internet and its related technologies, we now have access to more information, in more places, in more ways than ever before. Web 2.0, Social Media, Application Software Development, Mobile and related technologies are having a profound impact on Interactive Marketing Strategies. Many agencies are capable at traditional & online media marketing, or they may have strong technical capabilities--but, it is rare to find an agency that has all of these abilities and deep technical resources such as Definition 6.

To follow the fire hose analogy--anyone faced with that situation would get out of the way. The high volume and velocity of incoming data require some type of control and direction to be useful to ourselves, our clients, and our business.  Developers, interactive designers, and marketers are faced with the same questions as consumers--how to manage the onslaught of incoming information. Interactive Ad Agencies are faced with the additional responsibility of creating new tools to distribute information in a clear and meaningful way. These interactive professionals are the firemen holding the hose. 

At the height of the dotcom boom, an old colleague used to remind me that technology is simply a way of doing things. As the old broadcast model of advertising becomes obsolete, and user discovery & social interaction drive engagement, the function of marketing itself must now change to meet these communication challenges. This new model now poses new questions about where marketers should be, how they communicate, and when that interaction will occur.  I still remember the first  7-Eleven convenience store that opened in my neighborhood, and discovering that name comes from its operating hours—--it was a big deal to be open until 11PM! Marketers didn’t create more ads to attract customers from 9-5, they simply changed to meet customers on their own terms.

Integrated interactive marketing campaigns must be open and immersed in the culture to create value and be relevant. Successful marketers are positioned alongside their target market, making use of tactics such as Branded Content and Branded Entertainment to engage the user, enabling them to discover that value on their own, and decide what truly fulfills their needs. This is not an easy task, and creating meaningful user interaction grows out of qualified analysis of users and their interactions. Those of us in Media and Advertising have been exposed to these ideas before, but never before have these been more important to interactive design. Today's consumer has become a partner in the design process, and defines how we approach our interactions with them. Social media tools such as MySpace, Facebook and Twitter provide marketers with a limitless cache of information to help segment, target and engage users as never before— which only highlights the need for efficient processing of data.

Our obligation to clients is to find the relevant information, manage and organize it, and disperse it to potential customers.  To do this, we interpret client requirements and translate those requirements into a meaningful Interactive Experience. We need to collect and analyze enough user data to create strong, branded messages that reach the intended target. In addition, we must combine data with the tools and applications that make it meaningful to those target consumers.

In this new age of discovery, the true Integrated Interactive Agencies are taking the time and effort to find the tools necessary to do the job, or when needed, create them. With information coming constantly from every direction, those who are efficient at organizing, managing, and presenting it will be successful. Otherwise, we're just spraying a fire hose.  If we attempt to do that, consumers will just get out of the way.

Hispanics are Brand Loyal. Are they choosing your brand?

Thursday, August 13, 2009 by Lance King

If I haven't convinced you yet that you should spend some marketing time and money by focusing on the Hispanic population, let me try again.  Media Post has several great articles on the subject.  Here is another one by Diana A. Terry-Azíos called "Brand Loyal, Yet Unbranded".

As a general rule, Hispanics are more brand loyal than other groups.  They are less risky with their purchases and stick to brands that have provided good quality products.  However, when many of them move to the U.S., they are likely not going to find their familiar brands here.  So they have to start shopping and they have tons of choices to choose from in the U.S.

Another issue is that they are not as compelled to buy "Made in USA" as other U.S. citizens nor will they be compelled to buy products endorsed by people they don't know.  If Hispanics don't know who Michael Jordan is, then he isn't going to help Hanes sell more underwear to them.  And Brett Favre isn't going to help sell more Wrangler jeans to them.

Here are some key points to marketing to the U.S. Hispanic population.

- You have to prove that your product is of good (or the best) quality.  Hispanics will often spend a little more if they are getting the best quality.
- Start a marketing campaign that will speak directly to Hispanics, perhaps with Hispanic stars, but definitely with Spanish content (and not just English content translated directly to Spanish).  Your marketing campaign needs to address quality, convenience and emotion.  But also keep in mind that the growing young Hispanic consumer considers himself/herself as Latino AND American.
- Use multiple touch points to stay in contact with Hispanic consumers. For example, studies have shown that Hispanics are more likely to respond to text messages than other groups.

For more Key points, see the article I am referencing.

Oh, and by the way, here are some interesting facts about the growing Hispanic population.

45.5 million -- The estimated Hispanic population of the United States as of July 1, 2007, making people of Hispanic origin the nation’s largest ethnic or race minority. Hispanics constituted 15% of the nation’s total population. In addition, there are approximately 3.9 million residents of Puerto Rico.

About 1 of every two people added to the nation’s population between July 1, 2006, and July 1, 2007, was Hispanic. There were 1.4 million Hispanics added to the population during the period.

3.3% increase in the Hispanic population between July 1, 2006, and July 1, 2007, making Hispanics the fastest-growing minority group.


Want more?  Here are some interesting facts.

So what are you waiting for?  The growing Hispanic population is waiting for you to give them a good reason to buy your products and to tell their friends just how good you are.  As word spreads through their community, your profits should start growing at a faster and faster pace.

We can help you.  We are an Atlanta interactive advertising agency.
 
Definition 6 is an interactive media agency that creates marketing initiatives that engage people.  We capture and analyze relevant metrics from web analytics, email marketing, online media, and social media campaigns to continue to test and refine marketing plans.  We’d like to help you meet the challenge of addressing the new expectations of consumers.


Value in your social network

Friday, June 5, 2009 by Jeremy Bromwell
I recently read an article in BusinessWeek titled "What's a Friend Worth?"  The article gives an interesting perspective about social media strategy and how online media tools can help provide massive insight into consumer and employee behavior.

"What do these relationships say about us and the people in our networks? Companies armed with rich new data and powerful computers are beginning to explore these questions. They're finding that digital friendships speak volumes about us as consumers and workers, and decoding the data can lead to profitable insights. Calculating the value of these relationships has become a defining challenge for businesses and individuals.

Marketers are leading the way. They're finding that if our friends buy something, there's a better-than-average chance we'll buy it, too. It's a simple insight but one that could lead to targeted messaging in an age of growing media clutter.

The second arena for study is inside companies. Businesses such as Hewlett-Packard and IBM (IBM) are researching employees' relationships with an eye to quickening the flow of knowledge and the generation of ideas within their ranks. One team at IBM Research, studying anonymous data of Big Blue's consultants, concluded that employees who forged tighter e-mail connections with their boss brought in on average $588 more in monthly revenue. This is early-stage research, but the goal is to distill patterns of successful communication and replicate valuable links throughout the company.

For most of us, the business value of networked friends is tied to a third area, personal opportunity. In addition to companionship, friends online represent a turbocharged Rolodex for entrepreneurs and job seekers inside and outside companies. These collections of contacts expand social horizons, keeping us in touch with more people who can provide ideas, answers, business leads, and even legal advice. Those who master these connections stand to win a big edge: the connections and brainpower of a large team."

While monetizing social media marketing can, at times, be challenging increased brand awareness and buzz around your product, service, or company can help you reach new consumers with very targeted messaging.

As more and more data is collected and analyzed over time the insights will become more valuable. 

Read the full article here.

Learn more about Definition 6's Interactive Marketing Services.

Advertise or Die

Friday, May 29, 2009 by Lynn Moss

Lori Willard, Online Media Specialist here at Def 6, passed along a MediaPost Research Brief that shows that reduced advertising during a recession negatively impacts consumer perception.

According to a new Ad-ology Research study, "Advertising's Impact in a Soft Economy," more than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling.

Conversly, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.
 
Other key findings include:

• 40% of consumers use coupons more now than a year ago

• Most consumers are as willing or more willing to pay more for ‘healthy' or ‘organic' products than they were a year ago

• A ‘deeply discounted price' was the number one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)

• Store websites ranked second only to search engines as the way consumers research products and shop online

Ad-ology summarizes the research by saying:  “It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand.  Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value.”

Definition 6 offers strategy consulting services to help you with your advertising initiatives for the following disciplines: email, SEO, SEM, online media, social media, and mobile.  Don't let your advertising negatively impact consumer perception.

The Implications of the Social Data Revolution

Tuesday, May 26, 2009 by Lynn Moss

In 2009, more data will be generated by individuals than in the entire previous history of mankind.  

Andreas Weigend explains how/why at http://blogs.harvardbusiness.org/now-new-next/2009/05/the-social-data-revolution.html.  T
here have been two “data revolutions” in the way consumer data is solicited and collected.

Initially, successful companies gained power by collecting, aggregating, and analyzing the customer data they collected.  But, most companies didn’t fully utilize all the data collected.

Then, companies like Amazon.com realized that users often trusted recommendations by other users more than promotional materials.  Users started to actively contribute explicit data, such as, information about themselves, their friends, or about the items they purchased.  Amazon leveraged this new knowledge to help customers with their purchasing decisions.


Successful firms encourage and reward users who contribute honest data.  Netflix allows users to contribute ratings for movies that they have seen; the incentive to contribute accurate data is to get better recommendations for new movies.  Customers are starting to interact with each other. Knowing that they are not alone has shifted the balance of power from companies back to consumers.


Why spend time on hold with a customer service representative if we can just Google see if someone else has already solved the same problem?  An online user community was likely to be more helpful than a representative employed by the company.


Bottom line:  The online world is beginning to be ruled by the expectations of the users.  Companies that want to stay relevant have no choice but to accept the ideas of the consumer revolution as swiftly as possible and address the higher expectations for customer relationships.

Definition 6 is an interactive media agency that creates marketing initiatives that engage people.  We capture and analyze relevant metrics from web analytics, email marketing, online media, and social media campaigns to continue to test and refine marketing plans.  We’d like to help you meet the challenge of addressing the new expectations of consumers.

Twitter isn't the only game in town!

Monday, May 4, 2009 by Michael Kogon
 

At our Interactive Ad Agency we continually help our clients make good decisions regarding their online media usage. Social Media, eMail Marketing, PPC/Paid Search, Search Engine Optimization, Display, Mobile and Video are just the headers of the variety of options available to us. But recently Twitter has been owning the headlines.

 

David Martin, vice president, primary research, Nielsen Online, wrote in a blog post: "People are signing up in droves, and Twitter's unique audience is up over 100% in March."

 

But today I was sent a great article from MediaPost about an online / microblogging / SMS option to reach the masses that might not be the techno elite, but make up the mainstay of consumer America. More spending power and more of the participants in creating UGC for all our social media sites. The company is called Predicto and it is very focused on the celebrity world, think People, US, The View, TMZ, etc. http://www.predicto.com/

 

Between October and December 2008, Twitter had approximately 812,000 unique SMS users, but Predicto Mobile interacted with more than 2.3 million unique users. "We have a mainstream audience, which can help us grow faster," Kathein said. "Our members aren't necessarily the early adopters. Our customer base isn't made up of heavy iPhone users."  The full article can be found at http://bit.ly/M1QQy

 

I think this a great example of how Interactive Marketing is very niche and how you shouldn't fall in love with one channel, because your users might be better served with another channel.

Best Practices for Display Banners

Tuesday, March 31, 2009 by Lynn Moss

PointRoll hands out nifty little notebooks with the first page filled with Best Practices for Display Banners.  Here's a summary:

1.  Keep the campaign objective and key metrics in mind when designing banners.   Use more than one panel for displaying a lot of info or you want user interaction and engagement.  If direct response is desired, one action-focused panel is most effective.

2.  Banner animation should not be too slow or too fast; the call to action should appear immediately.

3.  Give the user a compelling reason to rollover with a clear, prominent, and relative call to action.

4.  Rollover hot spots should be as large as possible and easy to see.  On most sites, the rollover max spec is 33% of the banner.

5.  All panels should be accessible from any other panel.  Use horizontal hot spots on horizontal ads and vertical hot spots on vertical skyscraper ads.

6.  Ideally, the entire panel should be clickable, and also use a well-defined click button.

7.  Include a "loading" message that appears as the video streams in.  Users with slower connections will know the video is coming.

8.  Use video player controls for optimum usability - pause, play, and volume.

9.  Video should auto play upon user rollover.  Requiring users to "click to play" reduces video plays.

10. After video completes, include compelling, relevant call to action.

More Best Practices for display banner ads are listed at http://www.pointroll.com/best-practices.aspx.

Definition 6 can help you craft your online advertising strategy, whether it is banner ads, organic or paid search, or email marketing.  We negotiate with vendors to maximize your media spend when developing Media Plans that meet your objectives.  We design and build ads and deploy them, working with partners, such as, the search engines and PointRoll.  We do it all!

Social Media Predictions for 2009

Monday, January 19, 2009 by Michael Kogon

Account Coordinator Jeremy Bromwell speaks out about Social Media:

As we settle into 2009 it is extremely important to stay in tune with market conditions.  Social media is expected to see significant growth as an interactive channel largely as a result of our economic reality.  Earlier this week Erik Qualman at Search Engine Watch published an article with his predictions for social media in 2009.  Here are a few highlights from the article:

  1. Social Media will continue growing, Business Networks will surge, Free Services will become defunct, Traditional broadcast television moves online, Social Media will change real world behavior, More Social Media searches for Products and Services, and Marketing Budgets will Continue Shrinking
  2. If your business or service does not currently have a presence in the social media space, now is the time.
  3. When considering your social media presence, consider the goals.  Many times the success metrics for social media are different than other channels.  The focus for most brands should be brand engagement and awareness.  The primary goals of social media, in my opinion, are viral distribution of your marketing message and to remain top of mind for your audience.  If you can achieve this you will ensure that your brand stays in the buyers evoked set and has a higher propensity to purchase YOUR product/service.
  4. Mobile devices will be the primary way people access social networks and tools. 

In summary, companies that are not leveraging this relatively low cost channel will be left behind as more and more users adopt social media.  Developing a solid social media plan is a great place to start and is something that can be accomplished in a relatively short period of time for a low cost this quarter and can then be executed for the rest of 2009.  Additionally, a study conducted by the Kelsey Group and ConStat shows that the percentage of mobile phone users who said they accessed social network sites from their handsets jumped 182% from September 2007 to October 2008 (see graph below).  Check out our Social Networking Quickstart blog to learn how leading interactive agency, Definition 6, can help maximize all of your social media efforts.

 

 

eMail Marketing Maybe the Answer

Monday, December 15, 2008 by Michael Kogon
At this Interactive Advertising Agency, we have been writing about how traditional media spending is moving on line. We have not been alone and we do believe that it is a good action to take if you are in Interactive Adversing. However, Pat LaPointe makes a good point last Friday in the article "Fools Rush In -- In Search of Magic ROI", "....beware: nearly EVERYONE ELSE HAS THE SAME IDEA. .....But the laws of marketing physics suggest that more marketers and marketing dollars will rush in to the arena than proven executional avenues can accommodate in the short term. And most of them will NOT bring breakthrough new creativity with them. That will create lots of failure and un-delivered expectations, which in turn may slow adoption of otherwise valuable marketing options." Full Article at: http://www.mediapost.com/publications/?fa=Articles.san&art_aid=96614#comments.

So it got me thinking...what about Email marketing?  The more the idea soaked in the more I liked it. Targeted Email Marketing is a wonderful way to shift ad dollars into digital and avoid being overwhelmed by the clutter. It is your list, your relationships and your message. It might be better than an over priced PPC campaign and a weak display campaign. It certainly will be faster and cheaper to do!

At the same time, if your Interactive Adversing Agency is good at creative, good at media planning and optimization and good at conversion techniques, you might just be someone who can break through the clutter, gain market share and then use Email to crush your competition.

Interactive Advertising Holding Our Own

Tuesday, December 9, 2008 by Michael Kogon
The best part of having an Interactive Advertising Agency is seeing how leading edge thinking evolves and grows. Years ago we would just talk about eMail Marketing, Search Engine Optimization Consulting, Website Development and hosting services. That was it and then the crash of 2001 came along and Interactive Advertising Agency life became harder and many companies went out of business. If the last two days are any indication of things to come, interactive advertising is going to only become stronger in the next 18 months. Take a look at this chart from Media Daily News:

ZenithOptimedia, GroupM Forecast U.S., Worldwide Ad Recession In 2009

 

 

2008

2009

2010

2011

ZenithOptimedia

 

 

 

 

U.S.

-3.8%

-6.2%

+2.1%

+2.8%

Worldwide

+1.3%

-0.2%

+5.5%

+5.8%

 

 

 

 

 

GroupM

 

 

 

 

U.S.

+0.3%

-3.2%

NA

NA

Worldwide

+2.6%

-0.2%

NA

NA


Who would want to be in the traditional adverting and media business next year?  Not me, and not because traditional isn't important and can't help brands, but compared to Interactive Advertising - look at this chart from Online Media Daily:

Share Of Worldwide Ad Spending By Medium

 

2007

2008

2009

2010

2011

Newspapers

27.1

25.4

23.8

22.3

21.2

Magazines

12.0

11.5

11.2

10.7

10.4

Television

37.3

38.0

38.3

38.5

38.5

Radio

8.0

7.6

7.1

6.9

6.7

Cinema

0.5

0.5

0.5

0.6

0.6

Outdoor

6.5

6.7

6.9

7.0

7.1

Internet

8.6

10.3

12.1

13.9

15.6

Source: ZenithOptimedia


Next year Interactive Adversing will exceed Outdoor, Radio, Magazine and I personally believe by 2011 will be equal to newspaper even if  others don't yet. Look for our upcoming posts on some rapid start programs on how to get involved in Interactive Advertising solutions for 2009.

The affects our economy has on media planning and budgeting

Friday, November 14, 2008 by Michael Kogon
Today’s Client Services meeting led into a discussion about how economic forces affect our clients’ media planning and budgeting.  Jeremy Bromwell, a Definition 6 Account Coordinator, shared some of his thoughts from an article he recently read on Marketing Sherpa…

Cuts for offline media and brand tactics are taking the biggest hits.  As an interactive advertising agency, we are uniquely positioned to help our clients divert offline dollars to the interactive channel and use superior analytics tools to increase both ROI and ROAS.  Jeremy’s key points included:

1. Over 50% of brand advertising is projected to have some to significant reductions in 2009.  Brand advertising would consist of both online display ads and print ads.
2. 68% of direct advertising budgets are projected to have no change or to increase.  Direct advertising includes tactics like direct mail and email campaigns.
3. When you split the same tactics between online and offline budgets, 12% of traditional media budgets are expected to increase while 31% expect increases in online budgets.

Brand efforts support direct tactics which can be especially important during an economic downturn, when brand advertising can underscore an organization’s strength.  Further, a downturn creates a buyer’s market for brand impressions offline and online which can give opportunistic companies a chance to enhance their market position.  As your overall marketing budget gets cut, evaluate the proportions like you would an investment and look for areas to reaportion funds to yield the most fruitful return.  As consumer preferences evolve away from traditional channels, money can easily be diverted to a variety of interactive techniques to keep brand engagement high.
You can read the article in its entirety at: http://www.marketingsherpa.com/article.html?id=30914