Showing posts with label internet marketing. Show all posts
Showing posts with label internet marketing. Show all posts

Tuesday, October 18, 2011

Can you hear me now? Highlights from the 2011 Mobile Consumer Report

If you company or clients have been slow about exploring mobile marketing, it’s time to wake up and smell the coffee.

According to a new report from Experian Simmons, almost 1 in 3 cell phone owners today believe that their cell phone will be their primary entertainment device in the future. But more importantly for marketers, this new study says that 30% of adult iPhone owners now say they want to use their phones to pay for purchases in stores compared with just 12% of non-iPhone owners.  That means a customer could walk into a store, research a product, but then buy from Amazon or another source on the spot.

Interestingly, those same would-be mobile payers appear to be very receptive to mobile ads.  23% of cell owners interested in making purchases with their phone also say they are “interested in receiving advertisements on my cell phone,” versus just 5% of all cell phone owners who say the same. Furthermore, 52% of cell owners interested in making purchases with their phone are also “willing to accept advertisements sent to my cell phone if I were to receive something of value in exchange,” versus just 12 percent of all cell phone owners who say the same.

The growth in these behaviors and attitudes cannot be ignored.  Here are some other noteworthy findings and conclusions from the Experian Simmons study:

227 million Americans own a cell phone: Over 9-in-10 adults, 7-in-10 teens and 1-in-5 kids
Cell phone ownership among American adults stands at 91%, up from 72% in 2006. The vast majority of teens, too, have joined the mobile revolution, with 74% of those ages 12 to 17 porting a portable phone, up from 59% in 2006. Even tots are getting into the act - 22% of kids ages 6 to 11 own a cell phone today.

The Experian Simmons study identifies five distinct segments of mobile consumers.
  • Mobirati (20% of users): Representing the mobile generation, they have grown up with cell phones and cannot imagine life without them. Cell phone devices are a central part of their everyday lives.
  •  Social Connectors (22% of users): Communication is central in their lives, and cell phones allow them to keep up-to-date with friends and social events. Their phone is the bridge to their social world.
  • Mobile Professionals (18% of users): Smartphones help them keep up with their professional and personal life. Their phone has become their all-in-one device for communication and information needs.
  • Pragmatic Adopters (20% of users): Cell phones came to being during their adult years. They are now learning that there are other things they can do with mobile phones beyond just saying “Hello.”
  • Basic Planners (21% of users): They are not into cell phones or the world of technology. Use of cell phones is just for the basics. The cell phone is just another communication device for these consumers.
While pictures are still the number one activity, web surfing and video are the fastest growing uses.
It’s not surprising that using a cell phone to snap photos is a routine, everyday occurrence (73% of cell phone owners say they have snapped a pic in the last 30 days).  The more important statistic for marketers is that web surfing is also becoming commonplace among smartphone owners.  56% of users now access the Internet with their phone at least once a month. That a 41% increase since 2008.  What’s the next big thing? Video: 18% of all cell phone owners now watch video either streamed or uploaded to their phone, up from just 10% in 2008.

Mobile phones are quickly becoming an indispensable shopping tool.
According to the latest data, at least 33.3 million Americans now use their cell phones for shopping-related activities. The most common mobile shopping activity is researching products and comparing prices, which 15% of mobile phone owners now do every month. The most common items consumers want to buy via their cell phones are: Tickets to movies/events; Travel services and Games/Toys.

There are many other findings on m-commerce in the study.  You can access the complete study here. 

Which I highly recommend if you have a client or prospect that can benefit from this knowledge.  With a little help from you!

Wednesday, June 29, 2011

Circling the wagons. Can Google+ out-connect Facebook?

The Google vs. Facebook battle just got a little hotter. Google Executive Chairman Eric Schmidt has announced the introduction of Google+, their newest (and hopefully better than Buzz or Orkut) foray into the world of connections among friends. Or in this case, “circles" of user groups.

But according to Mr. Schmidt, this latest introduction is not an attempt to compete directly with Facebook. "Our social strategy is to take our current products, get users to give us social information and make our current products better," said executive chairman Eric Schmidt, talking to journalists at the Cannes ad festival.

It is obvious that the bigger opportunity for Google here is to harness the data about human connections generated by the social web and apply that to search and even display advertising.

Grouping your connections into "circles".
Google+ is different from Facebook in that you organize your friends into groups, such as family, work, friends, etc. This can be an advantage over Facebook if you want to share work-related information that your friends or family would not have an interest in seeing. Or if you want to share photos of a more personal nature that you don’t want your business colleagues to see.
Another difference with Google is that there are no friend requests. People do not need to agree to be friends with one another and can view updates without sharing their own.

Google + breaks down the Facebook data walls.
Even though search engines now crawl Facebook for links, the data about users and friends inside Facebook is not accessible to outside companies. Google+ could be a huge deal for Google if people are willing to participate in their network. Google+ will give Google a place for users to create their own content but will be searchable and information rich for Google. And you can bet they will monetize that data.

No one is talking about the impact of Google+ on advertising. Yet.
Google executives declined to say how Google+ will affect their advertising offerings, but as people spend more time inside controlled environments such as Facebook and mobile apps, Google loses its power to search and monetize that walled-off content. Google did confirm that +1, an icon launched recently as a counterpoint to Facebook Likes is integrated into Google+. Since +1 will be used as a tool to improve ad targeting, it seems safe to assume that Google+ will be used as a major part of their future advertising strategy, if it succeeds.

Google execs say more information will improve usability of all Google products.
Google executives said that getting social information on their users will improve Google products across the board -- by allowing personalization. Most of Google's most popular products such as search, maps and YouTube do not require a login, which limits what Google knows about its users.

Google+ may have more impact on mobile than social networks.
"It would take a seismic shift for people to take their social stuff to Google," said Deep Focus CEO and founder Ian Schafer, who said that the real earth-shattering use for Google+ is in mobile, not social networking. "The biggest implication for Google+ is mobile," Mr. Schafer said. "For example, for people to be creating content wherever people are and using that to deliver messages to them and close the loop on sales. The promise of Google+ is closing the loop on social CRM."
For advertisers and brands, the potential impact of Google+ is huge. "A connection made with a brand in Google+ can eventually be tracked to a purchase," Mr. Schafer said. "If we can create relevant brand engagements with people and give them an ability to purchase the product at a later date -- whether that's three, six or 18 months later -- this brings us back to social ROI."



I like the idea of being able to control my shared content to selected groups, but I’m not sure I want to stop using Facebook. So, to me, the real challenge for Google+ will be whether people will want to devote more time to sharing given the current time-compressed world we live in. It will be interesting to watch.

What do you think? Is this a brilliant strategy for Google, or will it fall flat?

Wednesday, March 16, 2011

Staying Ahead of Trends For Your Clients

For some time now, I'm been preaching that agencies should be looking for ways to add value to their client's business beyond simply being a creative vendor. With new marketing tools being introduced almost daily, it is difficult and confusing for many clients to determine the potential value for their business.

When I read some of the reports from this year's SXSW conference, I saw what may be a great opportunity for an agency to lead their client. SXSW has a reputation as a predictor of what's new and what's next in tech marketing, and if that holds true this year then Groupon, Living Social and the local-deals market are the next big thing.

Based on the success of Groupon and others, hundreds of local publishers have launched copycat Daily Deal products in the last six months, and this is just the beginning. According to reports from the conference, several big names and mobile marketers are going after a share of this newly-formed billion dollar market with new and innovative products, including Google, Bing, Facebook and a host of location-based apps.

Google was forced to confirm the existence of Google Offers in late January when Mashable broke the news, citing confidential sources. Marissa Mayer, Google VP-consumer products, officially confirmed the new product offering with a keynote speech at SXSW detailing the search giant’s plans to offer a prepaid deals program that would compete with local deals giant Groupon, which the search engine failed to acquire late last year.

In November, Facebook launched Facebook Deals, which lets businesses offer discounts to Facebook users. The world’s largest social network announced it will work with local businesses on a "Groupon-like offering", which presumably means daily deals and discounts. This marks another social networking area that Facebook wants to conquer.

In the coming weeks, Facebook will allow users in Dallas, Austin, Atlanta, San Francisco and San Diego to buy deals through Facebook and share them with friends. Facebook sales' team will bring deals to local merchants and will also source deals through third-party networks like Tippr, Gilt City and Pop Sugar City.

In early March, Microsoft announced the launch of a new Bing Deals section on its desktop and mobile website. Rather than offer any money-saving offers itself, Bing Deals will give users the convenience of single-site sourcing by aggregating 200,000 offers in over 14,000 cities and towns across the US.

The deal search feature on Bing’s mobile website is location aware via GPS, allowing users to find the best offers within a few blocks of their current location. On the desktop version of Bing, deals are linked to venues. Any location you search for that’s currently offering money off will display a green Deal icon, linking through to details. With so many daily deal services out there now, being able to search for them through a unified, user-friendly interface like Bing will offer a major benefit to time-strapped consumers. Yahoo launched a similar service in November last year.

According to daily blogs from SXSW, even the little guys are moving aggressively in the local deals area. Loopt introduced its new Push Deals, a service for local retailers to sell slow moving or overstocked inventory over the course of hours. While Groupon offers deals within 24-hour periods for use over longer periods, merchants can send out Loopt Reward Alerts to get customers to take immediate advantage and drive them to their retail location. This means that if you’re walking by a restaurant and it’s a slow night, they can hit a button to send out a notification to give you a deal to come in. This works on a network like Loopt (as opposed to Foursquare) because the app uses background location to keep track of you.

Another location-based app, SCVNGR, is also jumping into the market with a new service called LevelUp. These deals have different tiers -- everyone gets the same deal the first time around, but you can unlock a sweeter deal on the second visit and one that's sweeter still on the third. "The goal is to turn newcomers into regulars," said SCVNGR founder Seth Priebatsch during his keynote. SCVNGR touts the real beauty of LevelUp for its merchants as retention.

Their execs point out that Groupon has built a great tool for acquisition to get new bodies through the door, but that model has proven easy to copy. As they described their goal, the daily deals crown will likely belong to whichever startup can figure out how to get those bodies coming back as repeat customers at regular prices.

Retaining its own customers is already a huge focus for Groupon. They plan to keep merchants and customers coming back through old-fashioned service and CRM tools. Google Deals is also tweaking the model in an attempt to turn users into repeat customers. The first visit doesn't automatically turn on a discount or offer -- customers have to check in multiple times to gain "Regular," "VIP" or "Guru" status before they can claim the discount. The experiment is only during SXSW for now, but Ms. Mayer said Google plans to expand nationally.

Foursquare has offered merchants deals through its app for some time now, but new features also demonstrate their focus on retaining customers. During the conference, Foursquare has partnered with American Express to tie transactional data to check-ins and customer behavior. Conference goers can link their AmEx cards to their Foursquare accounts so that when they check-in to a participating Austin business, the credit card automatically loads with bonus cash to go toward a purchase. The deal also means merchants can see transactional data through their analytics tools. For example, they can see that the top 20% of customers tend to check-in most frequently, or like one type of deal over another.

How big is the potential for the daily deals market? Well, if Groupon’s rejection of a reported $6 billion offer from Google wasn’t enough for them, they may know something we don’t.

What do you think? Should daily deals be a part of your client's marketing planning?

Tuesday, December 7, 2010

Has the Internet changed more than just how we buy, but also how we decide what to buy?

McKinsey research on the Internet and its effect on our buying habits says "yes". The explosion of products, media alternatives and access to word-of-mouth experiences through social media and other Web 2.0 access points has created a radically new buying decision process.

The McKinsey study concludes that consumers no longer proceed in a linear "purchasing funnel" process when deciding to make a purchase. The funnel analogy has been a basic guideline for marketing thinking and planning for many years -- consumers start with a number of potential brands in mind (the wide end of the funnel) and then systematically move through linear stages of familiarity, consideration and purchase by narrowing the choices along the way to get to the one brand they ultimately purchase. It sounds logical, and has been until now.

Marketers and their agencies must acknowledge this new "consumer decision journey", as McKinsey describes it, and revise the focus of their marketing to be in the right place at the right time to reach consumers when their message is most likely to influence their purchases.

The first step in the buying decision is the same. The consumer considers an initial set of brands based on brand perceptions and exposure to recent touch points. It should be noted, however, that other research has confirmed that the initial consideration set is typically much larger than it might have been in previous buying decision based on the greater number of products and a decline in brand loyalty from a preferred brand to a preferred set of brands.

It's the second step in the buying decision that has been most affected by the web. Rather than narrowing the choices, the consumer enters an active evaluation phase where the number of choices may be dramatically expanded. Internet access to information from a variety of social media and other word-of-mouth touch points can have a dramatic effect on the brands that were initially considered, and those original choices can be easily replaced with more informed choices based on trusted input and evaluation.

This active evaluation phase shows a profound change in consumer response and requires much more consideration by marketers if they want to be successful. The traditional "push" marketing elements, that most likely affected the initial consideration set, can be easily modified by an empowered consumer who now takes control of the decision process. Today's empowered consumer actively seeks corroboration of previous brand impressions and new input from Internet reviews and other information sites as well as word-of-mouth recommendations from friends and family and other trusted sources. The McKinsey report concludes that traditional marketing remains important, but argues that marketers must move aggressively to learn to also find ways to influence these consumer-driven touch points in order to remain in the consideration set.

Ultimately, the consumer selects a brand to close the purchase, but the McKinsey study shows that even this stage has seen changes. Their study places much greater closure importance on the impact of the in-store (or on-line store) experience as well as recollections of past experiences. They conclude that many purchases become a last minute decision.

Another important finding from this study is that the post-purchase experience has changed dramatically as well. Many consumers go online to conduct further research after the purchase, a stage never considered in the original funnel model. This post-purchase research can either confirm the wisdom of their decision, or have a significant impact on future purchases by exposing the consumer to new, previously unknown, alternatives.

This new knowledge on the "consumer decision journey" requires that all marketers re-evaluate their marketing programs to ensure that they are influencing and impacting consumers at every stage of the process. It certainly tells us that we must do everything we can to develop touch points during the consumer-driven stage of the decision process. For many marketers, this will require a mind-set shift from a reliance on buying media to a more balanced program that supports developing assets such as interactive web sites, mobile marketing, social media properties, and rich media applications that provide a way for consumer to learn more about their products and services.

This also presents a new challenge, and a new opportunity, for agencies to help their clients navigate these new alternatives to find the best solution for their brand. As I have said in previous posts, clients are not just looking for an agency to develop an ad or design a web site, they are looking for someone to help them build a bridge between the brand and their customer. Helping them understand how their customer reaches the ultimate purchase decision is an crucial ingredient in finding that bridge.

As marketers, we know that the Internet has dramatically affected the buying process for many products as online purchasing continues to grow at a dramatic pace. Preliminary results from this year's Black Friday and Cyber Monday online sales confirm this as fact, But we should also understand that the Internet has had a major influence on the buying decision process as well.

The complete McKinsey study can be accessed by following this link: http://tinyurl.com/yatjepz.

Friday, September 24, 2010

How Mobile Is Your Client's Marketing?


Email, social networks and mobile devices have become an integral part of our everyday lives. Just how much influence they have is apparent when you look at these facts from recent studies:
- 97% of US households use email.
- 75% of Internet connected homes use social networks.
- 91% of the US population uses a mobile device.
- 23% use a smart phone.

Mobile marketing gives your clients an opportunity to provide an integrated customer experience using all three - email, social, and mobile. But while social networks have been embraced by a majority of marketers, mobile marketing still lags significantly. Mobile marketing offers a great avenue for an agency to help their clients grow their business.

A new study from eROI, The Current State of Social, Mobile & Email Integration, provides a good snapshot on where marketers stand today, and offers some interesting insights on how marketers can better integrate mobile into their marketing strategy. Why should they consider mobile? As this study concludes, Once a good user experience and relevant content are present, consumer adoption is accelerated and, as history has shown, companies that are first to offer these things in untapped mediums typically benefit the most from them (think amazon.com, Apple, AOL, Yahoo).

So here are some of the findings from this study of more than 500 marketers that you can use to alert your clients to this opportunity:

Mobile marketing is often a forgotten medium by online marketers. The study found that mobile marketing integration into email and online programs is relatively low, and few marketers are putting much effort on this channel despite the growing adoption rates of mobile devices (iPhone, iPad, Android, Windows Kin, Droid, etc.). Recent studies from Internet monitors predict that mobile Internet access will soon outpace PC access usage, so marketers must be prepared to adopt mobile or lose mindshare.

Only 1/3 of marketers surveyed consider mobile important.
When marketers were asked about the importance of digital marketing experiences and the importance of an optimized mobile experience, only 31.6% said that mobile-optimized experiences matter for their audiences. Another quarter of respondents (24.6%) are currently testing, while the remainder said they just weren't sure or that mobile was not important.

When asked if their companies were measuring the use of mobile devices for their email subscribers, nearly two-thirds (63%) of respondents said no and another 11.5% were not sure.

Not surprisingly, two-thirds of respondents do not use mobile versions of their websites or landing pages.
Since the majority of marketers surveyed were unaware of their customer/ subscriber audience usage patterns, as it related to mobile, it is no wonder that 77% of marketers are not offering , or are unaware of, mobile versions of their websites (67.6% not using; 9.4% not sure). Of those that are offering mobile-optimized websites, 68% are providing limited versions of their websites and 32% offer their entire website in a web-optimized format.



Now is the time for agencies to encourage their clients to start experimenting with mobile to determine its relevance for their organization. Based on this study by eROI, it would appear that the best way to begin to understand the mobile web is to look at website analytics. As the opportunities for mobile marketing continue to expand, marketers need to begin to understand more about the mobile web and how their customers are using it. Providing the right content in the appropriate context is a basic rule of marketing. Not every marketer needs to provide a fully functional mobile website experience, but how will you know if you need it if you don't have a clue as to your audience usage patterns.

Many marketers unwittingly believe that the only way to do mobile right is to provide a custom application, and they are expensive to produce. But as web standards improve, there is a big rise in the use of mobile web over applications. Email remains one of the most popular mobile Internet activities not just by time spent but also by penetration. According to the Pew Internet & American Life Project, 34% of all US mobile subscribers used email on their phone in May 2010, compared with 23% who used a social networking site.

The overall conclusion from this study is that marketers need to invest more time and energy to understand if the mobile web can contribute to their marketing program. Those who do stand a better chance at keeping pace with their customer's media usage. Those who don't may be left behind.

The full study offers other insights and opportunities on integrating social media as well. You can access the full study at http://www.eroi.com/online-marketing-resource-center/resource-center/

As I have noted in previous posts, many clients are simply overwhelmed by the new digital tools and how to use them to their advantage. In today's challenging marketplace, clients are not saying to their agencies, "How can you help us make ads or a new web site," they're saying, "how much do you understand about our business in order to help us build a bridge between our brand and our customers." The question is not just how to effectively use email, blogs, podcasts, mobile marketing, viral marketing, pay-per-click, user-generated content, Twitter, etc., but how to mix them with traditional media to create the most impact.

Understanding the potential value of mobile marketing is another way agencies can help their clients compete.

Monday, July 19, 2010

What's Hot and What's Not in Social Media

Everyone's talking about social media today. How do I use it? How do I measure the ROI? Etc. Etc.

I've written more than one post about the importance of helping clients to navigate these new waters, and have had mixed reaction from my readers. The most common objection stems from the question of "why should an agency promote an area that doesn't represent a defined revenue stream". My answer to that argument is that if your agency doesn't find a way to help your clients understand these new tools, then another agency will. Agencies can do their clients a great favor by helping them to figure out if social media can help to grow their business. Here are some thoughts on how to do this.

I recently came across a report on The State of Inbound Marketing, published by Hubspot in February, 2010. The primary focus of the report is on the growing importance of inbound marketing tools for lead generation, including blogging, content publishing, search engine optimization, social media and social networks.

While I'm not in agreement with their self-serving conclusion that traditional outbound channels like direct mail, telemarketing and trade shows have become "less effective over time as buyers have behaviorally and technologically (e.g. TIVO, spam filters, "do-not-call" lists) tuned these interruptive campaigns out", no one can deny the growing power and impact of inbound tools, especially social media. Many businesses are aggressively changing their lead generation marketing efforts to explore and add programs that allow customers to find them.

Marketers who are actively engaged in, or actively exploring, social media can find many interesting conclusions in this study to help them plan their own approach. Here are a few that I found interesting and enlightening:

1. Company blogs are the fastest growing and continue to be deemed the most important lead generation service for their business, with 85% of users rating blogs as critical, important or useful. Almost half of the companies using blogs (46%) have acquired a customer from a blog-generated lead, the highest for any social media channel.

2. Twitter was ranked as the second most effective inbound tool for lead generation with 71% of users rating it as "useful or better". This was almost double the 39% of positive users in the 2009 study, and reinforces the belief by many "committed business Tweeters" that when Twitter is used properly, it can be a valuable addition to a marketer's toolkit.

3. Facebook ranked third in importance with 61% of users touting its importance, barely edging out LinkedIn, which had ranked third in the 2009 study. An interesting side note to this conclusion is that Facebook has been more effective in customer acquisition for B2C businesses and LinkedIn more effective for acquiring B2B customers.

4. Other reported inbound tools - StumbleUpon, Digg and MySpace - all declined in usage and perceived importance. MySpace has virtually fallen off the radar as a lead generation tool with only 10& of users rating the site as "useful" or better.

There are other interesting facts and conclusions in this report relating to cost per lead, lead generation budget allocations by category and company size, the importance of blog frequency, etc. You can download the full report and other useful information at www.hubspot.com/marketing-resources.

Whether you use this report, and other input, to help your clients undertand and utilize social media is up to you. If it were my agency, I would find a way.

Friday, May 21, 2010

Adding Value - A Facebook Primer For Retailers

In previous posts, I have discussed two powerful strategies to gain new business - presenting new ideas to build a relationship and helping to guide clients and prospects through the often murky waters of the new digital marketplace. Here is an example of a recent value-added document I produced for a client to help him integrate Facebook into his marketing program.



A FACEBOOK PRIMER FOR RETAILERS

Are you a retailer who has finally acknowledged that social media is not just a fad but a legitimate marketing tool? You might already have a Facebook page, but do you really understand how to use it to build your brand and your customer base? Are you confident that you can tap into 400+ million users who spend an average of 55 minutes every day checking out the activities of their friends and browsing for info and interaction with companies they trust and appreciate?

Here are seven practical tips you can you use to help you along the way:

1. Before you start anything, write down the objectives of your social media program and specifically how you plan to use Facebook to build your brand identity and customer preference. This sounds simple and logical, and has been repeated by almost every social media proponent. Yet clients still come to me and ask “can you help me set up or improve my Facebook page?” without a clear objective in mind.

Too many retailers and small businesses have jumped into FB on the assumption that it was a cheap way to advertise, only to be frustrated and confused about whether their efforts are bearing any fruit, and disgruntled that it takes up so much of their time. The truth is that it’s not free, or even cheap. Time is money in any business. And it will take someone’s time to effectively use FB or any social networking effort. So you might as well think it through first; determine what you can and can’t accomplish, who in your organization has the time and talent to devote to the effort, and how you plan to monitor and measure the program. Just like you would do for any other element of your marketing program.

2. “Companies they trust and appreciate” is an essential concept that must always be uppermost in your mind. In everything you do on Facebook, you should be transparent, honest, listen before you engage, and add value to the community. FB is not a push medium. It is an opportunity to have a two-way conversation with your customers. If you don’t respect your customers by adding some value to their spending time with you, they won’t respect you. And many will tell thousands of their closest friends not to respect you either. An addendum to this point is that retail brands with social media campaigns must be increasingly sensitive to the privacy of their customers. This is especially important in light of growing public scrutiny of some missteps by FB corporately on how they are using the information many users innocently added to their profile.

3. Your Facebook page is not just another shopping website for your company, but it can work like one if done right. Users come to a FB page with a different mindset and objective. Most people visit a retail website to gain information or to shop. FB users come to interact – with friends and family or with companies they trust and appreciate (see above). It’s okay to offer a shopping option on your FB page, but if that is the sole thrust of your effort, you will alienate many potential “fans” and not use FB to its true potential.


1-800-FLOWERS.COM offers a good example of walking the line between shopping and interaction. Their Facebook page allows fans to share their favorite flowers and send virtual bouquets to friends, but also to browse flower arrangements and send actual flowers to their friends without ever leaving Facebook.

But that’s not all they do on their site. Wall posts introduce special promotions, offer information about specific flowers and engage their fans with conversation starters to encourage response, e.g. what do you think is better for cheering up a sick or injured friend – flowers, gift baskets, balloons, or something else?” They also invite fans to post pictures of flower arrangements they have received and to comment on the occasion.

Shopping and selling is not verboten on FB, but it must be done in a way that fans see as a natural course of action based on interactions with the company.

4. You can engage and reward your customers and build your “likeability” through polls, contests and other giveaways. Several companies have used a “Cutest Baby” contest to not only solicit entries, but also to encourage the sender and others to solicit votes to determine a winner. In the process, they have gained awareness and fans. If you give your fans an incentive to associate themselves in a positive way with your brand, you can grow that trust and appreciation discussed earlier in this post.


Disney recently offered a great example of providing a traffic-building incentive with their “Give a Day. Get a Disney Day” promotion. Through Facebook and other media, Disney encouraged their fans to celebrate the spirit of giving by volunteering for one day with any local non-profit to win a free day at any Disney park. Their plan was to give away 1 million free passes throughout 2010. Instead, they reached the 1 million mark in only 10 weeks.


5. Cause marketing is an integral part of the Facebook culture, so a great strategy is to partner with causes your customers care about. Don’t just think about driving traffic to your site or encouraging your fans to come into your stores to redeem their coupons. The Facebook culture is steeped in sharing causes with friends, and users have a great appreciation for companies that support worthy non-profit causes. You can take advantage of that pre-existing mindset by sponsoring a cause your fans will appreciate and by creating a way for them to interact with your brand in the process.

Target found a creative way to use cause marketing this past Valentine’s Day to encourage fans to send their love via a Super Love Sender e-card to one of five listed charities. Target responded by donating $1 million to those non-profit groups based on their percentage of response. St. Jude’s Children’s Hospital was the primary beneficiary with almost 50% of the donations, but Target is reported to have gained almost 170,000 new fans.



6. Take your conversation and interaction offline by promoting events but look for ways to draw them back to your page. Using Facebook to promote in-store or other offline events is a natural, but one key to success is to find a way to sustain the event in order to promote fan interaction and discourse. In 2009, Ben & Jerry’s introduced a new packaging innovation they call Flipped Out. They used their Facebook page to promote a city-by-city national tour that was successful in gaining trial, but also kept their fans talking and sharing tips for several months.

7. One final tip is to make creative use of the tabs to direct your visitors and fans to specific pages you want them to visit. The majority of successful Facebook pages continue to use the Wall and Info tabs as presented in the basic FB format, but them rename and reconfigure other tabs to take advantage of ways to build interaction with the people who visit their page. A common tab is for Photos, to encourage users to submit their own photos, but other tabs can range from specific Shopping pages to New Products. A good strategy here would be to see how your Facebook pages can complement your website interaction approach. The important thing to remember is that your Facebook page is a two-way conversation, not a one-way push. So make tab changes that promote user interaction with your customers’

As it is with any element of your marketing program, creativity rules. And the newness of the Facebook experience offers many opportunities to try new things. I’ve given you some examples of how other retailers and companies are incorporating FB into their marketing program. But let me repeat something I said at the beginning of this post. In everything you do on Facebook, you should be transparent, honest, listen before you engage, and add value to the community.

The most important element is to add value to the time they spend with you on your FB page. If you respect your customers and make it beneficial in some way to spend time with you, they will respect you. And that has always been the first step in driving a customer to any store.

Tuesday, January 12, 2010

Move Beyond Cold Calling If You Want to Grow Your Business

Cold calling as a primary outbound marketing tool just doesn't work for ad agencies.  Never has, never will.  Yet I still run into agency principals who think that blanketing selected targets and industries with sales brochures and unsolicited telephone calls or emails is the best way to grow their business.

The latest edition of Marketing News from the American Marketing Association has an interesting case study on how a small Indiana service provider doubled their revenue last year through web-based marketing in lieu of cold calling.  Here's what they did, and what any b-to-b service provider can do to grow their business.

The first step was a redesign of their web site to move it from a brochure site touting their background and experience to an interactive experience that walks potential customers through the steps of deciding if they need their service to why they should choose their firm.  Along the way, they adopted several best practices to simplify the navigation and reduce copy to add more graphics.  They rewrote copy using direction from Google Adwords and adopted some other simple SEO principles to re-write title tags and add keywords to their code.

The next step was to launch a blog to feature their knowledge experts' insights on topics of interest to their key audiences.  They used SEO tactics to ensure that blog posts ranked high for searches related to their content matter, added a link to the blog to the company's web site and shared blog posts with LinkedIn groups.  According to their marketing director, tracking analysis found that LinkedIn was particularly effective in driving traffic to their blog which in turn led to more attention to the company's web site.

Although they did not use Twitter, I believe that tweeting with a link to the blog post is another way to effectively drive traffic to your blog and ultimately to your site.

They extended the company's thought leadership profile by expanding selected blog posts into magazine articles, white papers.and presentations that led to conference speaking engagements based on their demonstrated credibility and subject matter expertise.  They also began a concerted effort to establish strategic partnerships with complementary service providers.

The combination of web-based marketing efforts and new partnerships has led to a "snowball effect" according to their marketing director.   Traffic to their web site jumped from an average of 10 to 15 visits per week to 1,500 to 2,000 visits per week.

Prior to launching this intensive web marketing program, nearly 80% of their new business came from cold calls and traditional outbound selling.  This year, more than 80% of new business has come web driven initiatives and revenues have doubled.

These changes weren't rocket science.  And they weren't particularly expensive.   What they did is take advantage of an integrated marketing effort to allow prospects to move through a decision thought process before they even talked.  That led to a much more cost effective way to invest their time and efforts to grow their customer base.  Is it time to rethink your business development strategy?

Wednesday, April 1, 2009

Beyond Advertising - A New Direction for Ad Agencies?

In 2007, the IBM Institute for Business Value issued an insightful report titled The End of Advertising As We Know It in which they predicted that the next five years will hold more change for the advertising industry than the previous 50. Their study concluded that the accelerating shift of media experience and control to consumers and more self-reliant advertisers who are seeking more interactive, measurable formats will redefine how advertising is sold, created, consumed and tracked. As a result, traditional agencies run the risk of becoming irrelevant without a major shift in their approach and services offering.

The IBM study asks us to imagine and consider the consequences to traditional agencies in an advertising world where:
  • Interactive advertising surpasses traditional mass media vehicles as the preferred advertising format.
  • Ad space is sold through auctions and exchanges.
  • An advertiser can know who viewed and acted on an ad, and pay based on real impact rather than estimated "impressions."
  • Consumers self-select which ads they watch and share preferred ads with peers.
  • User-generated advertising is as prevalent (and appealing) as agency-created spots.

Last month, IBM issued a follow-up report based on their conclusion that major advertising trends identified in the previous study are happening at a faster rate than anticipated, while agencies, content owners and distributors have not responded sufficiently to these changes. This 2008 study, titled Beyond Advertising. Choosing a Strategic Path to the Digital Consumer, addresses these changes in more depth and from a very pragmatic perspective. Importantly, this report offers some practical advice to agencies on how to leverage their strengths in the creative area in the near term while they look for ways to adapt their business model and services offering to address the new environment.

Some of their suggested areas for immediate focus are:

  • Look for ways to broaden capabilities that can be integrated with traditional services offered by the agency as a way to diversify revenue and build a stronger client relationship at the strategic level.
  • Begin to proactively experiment with new tools and services that can deliver and automate ways to analyze ROI.
  • Restructure the organization to promote more collaboration by breaking down self-created silos across disciplines.
  • Consider partnerships to complement services and expertise that may be lacking today.
  • Look for ways to operate more efficiently through workflow automation, automated creative development tools and alternative media buying scenarios or partnerships.

One of their more intriguing suggestions is to redefine the agency role to be that of an "insights broker" that can analyze and integrate cross-platform sets of data to generate actionable solutions that better profile, target and measure ad campaigns. This represents a dramatic change from the traditional mass-oriented approach to analysis and measurement based on reach and impressions-based measures like cost-per-thousand.

The overall conclusion of the study is that agencies will need to adapt to this new environment in order to survive. Even while we must navigate the current economic environment that suggests a limitation on investment, agencies must start to experiment with and build these new capabilities now. The future will not just be the "end of advertising as we know it", it will be the end of the advertising agency as we know it.

To read the complete IBM study, go to this link:

http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1031045?cntxt=a1000062

Tuesday, March 17, 2009

A Look at the Ad Agency of Tomorrow

If you do nothing else today, read the lead article in the newly released Razorfish Digital Outlook Report titled "A New Role for Agencies. From Breaking Campaigns to Building Client Businesses". Follow this link to the complete report http://digitaloutlook.razorfish.com/publication/xml/4837/13617/13617.pdf
This year's DOR is filled with many excellent articles, but for anyone involved with new business, the most thought-provoking is the introductory one by CEO Clark Kokich.

Clark explains that his primary role as an agency head used to focus on talking to clients about how to say the right things, e.g. what do we need to say to persuade people to buy our product or service? He says that today he spends more time talking to clients about how to build relationships with their customers -- what do customers need to know to make smart decisions? how do we reach customers on the go? how do we help customers share their experiences with their peers?

This is not a new message from a digital agency. Every advertising conference for the past few years has predicted that the future is in building customer experiences, not just in producing great advertising. Clark takes this message a step further by pointing out the impact this change is having on the role all advertising agencies can, and should, play within client organizations.

As I have noted in previous posts, many clients are simply overwhelmed by the plethora of new digital tools and how to use them to their advantage. In today's challenging marketplace, clients are not saying to their agencies, "How can you help us make ads or a new web site," they're saying, "how much do you understand about our business in order to help us build a bridge between our brand and our customers." The question is not just how to effectively use email, blogs, podcasts, mobile marketing, viral marketing, pay-per-click, user-generated content, Twitter, etc., but how to mix them with traditional media to create the most impact.

There is no question that the new digital environment opens opportunities to redefine and expand the role agencies can play with their clients. Clients are dealing with a laundry list of challenges – a struggling economy, competition from companies and places that they never dreamed would impact their business, a continued drive for lower costs, and perhaps, most frightening of all, a growing realization of the power that a connected consumer has over their business strategy and success.

Clark's essay concludes that clients need ideas that will transform their business and that now is the time for agencies to step in as a partner in setting business strategy, designing products and services to meet changing customer needs and wants, and creating new revenue models for their client and for themselves.

This is, indeed, a new role for agencies. It will not only require new skills, it will demand that agencies expand their definition of what it takes to be a great agency. The agency of tomorrow will truly understand how to help their clients find the ideal marketing mix of "creative, technology, media, user experience and analytics."

It's a new role for agencies. Frightening to some. A great opportunity for all who embrace it to its fullest extent.

Monday, February 16, 2009

Don’t underestimate the power of the customer when building your brand.


Last week, I attended a webinar titled “Brand Building in a Digital Age”. I was expecting a “how-to” seminar on incorporating social media and other new technology tools as part of the marketing mix. As it turned out, the webinar was more about the power of the customer and the importance of good customer service in an era of instant access to millions of potential customers via the Internet. But that’s okay, because the webinar did give me some new insights and appreciation for the importance of doing and saying the right things with customers.

I have always counseled my clients and trained my staff to be sensitive to the importance of balancing expectations with the reality of the brand experience. Creating the right expectation can cover a lot of areas, but the most important are these:
- Understand your customer’s needs and wants.
- Don’t over-promise what you can’t deliver.
- Be transparent about your policies and procedures.
- Make it easy for customers to alert you to problems.
- Listen to the customer and do your best to resolve the issue as quickly as possible.
- Fix the problem so that it doesn’t happen again.

Okay, none of this is brain surgery, but I am still amazed at how many companies ignore one or all of the above. And the potential negative impact on your brand has never been scarier than now. As last week’s webinar pointed out, we are all doing business in a virtual bazaar where customers have the ability to positively or negatively influence thousands of potential customers.
Several years ago, a Yankelovich study concluded that a positive customer experience was generally shared with 2-3 people while a negative experience was shared with 15. With the power of the Internet, those numbers are now mind-boggling as witnessed by the MotrinMoms reaction to a Motrin commercial they found offensive and insensitive.

If you missed the brouhaha last November, here’s a quick recap. On a Saturday morning, Motrin launched an on-line ad via their website touting Motrin’s effectiveness in relieving back pain in mothers who carry their baby in a sling. While the basis for the ad was probably true, they chose to use sardonic humor and a flippant tonality to imply that “baby-wearing” mothers only use the sling to make a social comment to others that they are an “official mom”.

Online moms did not respond to the ad by racing out for Motrin. They were offended by the suggestion that they carry their babies just to be “fashionable”.

By Saturday evening the ad had created a firestorm in the Twitter community, was the most talked about subject, and led one Tweeter to comment: note to self … never piss off moms … especially twitter moms … they can be a nasty bunch ;)

By Sunday morning, a MotrinMom had posted a video response on YouTube and at last count has generated at least 61 additional YouTube responses that have been viewed by over 575,000 people. The negative response also dominated the blogging community for days, and will continue to be available to millions via the “Google penalty” as one blogger termed it.
Even though Motrin responded quickly by pulling the ad and issuing official apologies to the general community as well as to specific email protesters, there is no telling how much damage they have inadvertently done to their brand. And they didn’t over-promise, they just did something stupid.

So what does that say about retailers who loudly proclaim their “once-in-a-lifetime” sale that happens again next week? And again the following week? Are you listening department stores? Or what about the automobile dealers, mortgage companies and all the other advertisers who trumpet their incentives and hide behind the fine print. The old-fashioned notion of caveat emptor (buyer beware) has been replaced by seller beware that you don’t ruin your brand and your business in a blind quest for profit because your customers will tell the truth to the world.
The rapid growth of customer review sites like Yelp and Angies List and the emergence of customer feedback sites like Measuredup and Planetfeedback should be enough for marketers to wake up and smell that coffee.

The customer is not only in charge, they are in the driver's seat.

Monday, January 19, 2009

Are You Taking Advantage of Online Video as an Advertising Tool?

Online video is one of the fastest growing advertising channels in the U.S., and several recent studies indicate that online video will continue to rise dramatically relative to other ad channels over the next few years. As an advertising tool, online video is expected to dramatically outpace growth in search, display ads and rich media.

The Pew Internet & American Life Project's major report on online video last year confirmed that the growing adoption of broadband has resulted in a dramatic increase in viewing online video. Fifty-seven percent of online adults have used the internet to watch or download video, and 19% say they watch some form of video every day. This number grows even more when respondents are qualified by connection speed. Three-quarters of broadband users (74%) who enjoy high-speed connections at both home and work watch or download video online.

While YouTube leads the way in online video adoption by a wide margin, many advertisers have been hesitant to use it as an advertising vehicle. National advertisers and agency heads have said that the user-generated content is too edgy or unprofessional to be considered a serious advertising medium, but that may be changing. Google CEO Eric Schmidt has admitted that YouTube has fallen short in ad revenues, but he has pledged to make monetizing the site one of Google's top priorities. YouTube has recently started airing long form independent films, which should raise its professionalism perception to prospective advertisers and agencies. Media analyst Mark Glazer predicts that “with the brains behind Google trying to solve the advertising problem at YouTube, there's a good chance they will find a breakthrough format or idea.”

We are beginning to see dramatic growth in viewership of premium content sites like Hulu, ESPN, Nickelodeon, CNN and ABC. Hulu now claims to have run 88 million videos. This is only a fraction compared to YouTube’s 4.2 billion, but many analysts suggest that Hulu will be the more successful business since Hulu can sell advertising in 100% of its inventory. According to one estimate, Hulu could generate $90 million in revenue in its first year, roughly the same U.S. revenue as YouTube.

Almost all industry analysts agree that professional-quality online-video content is particularly promising because it's what ad agencies, media agencies and media companies already know. Clients and agencies will feel more comfortable developing new content or re-purposing existing television content for the web.

It is particularly interesting to note that local retailers and other small and medium-sized businesses are beginning to use video to promote their services. Restaurants, legal practices and specialty retail shops are leading the charge, but local tourism attractions and financial services won’t be far behind. Their use is sparking the formation of yet another fast growth industry that specializes in online video production. Two startups to watch closely are http://www.pixelfish.com/ and http://www.turnhere.com/ . These sites offer high-impact, broadcast-quality video that is easy and affordable for even the smallest advertiser, and this is a natural area for local, independents and free-lancers to develop a new revenue stream.

Online video advertising is fast approaching a point to become a natural adjunct to any broadcast advertiser's media plan, as well as a lower entry cost medium for those who can’t afford traditional television. If you’re not using online video, it would definitely be in your best interest to evaluate its potential for your business.

Friday, January 16, 2009

Branding in a Recession Economy

The Puget Sound Chapter of American Marketing Association held an interesting panel discusion this week on "How to Recession-Proof Your Brand". Despite this somewhat presumptuous title, there were several points that I found valuable nuggets of insight.

1. Now is the time to be authentic and consistent with your brand promise. There are two key points here. The first is to avoid the temptation to dilute or cheapen your brand image with promotional incentives that might damage the brand when the economy rebounds. The example cited was Macy's which has run 40% to 70% off on every item in their store for the past two months. The Macy's brand has always been about value, not low prices. Special sales are a retail mainstay, but I believe that they are approaching a point where many customers will be hesitant to pay regular price ever again. The second point is to avoid any overpromise as a way to entice new customers. As I have said in previous posts, today's consumers are unforgiving if they feel they have been duped, and the internet gives everyone a forum to express their disappointment.

2. Now is the time to focus on your unique market niche and deepen customer relationships with your brand. This doesn't mean you shouldn't explore new revenue streams, it simply means you should focus on what you do best and avoid trying to be something you are not really good at being. This is a good time to read Chris Anderson's book The Long Tail, if you haven't already. His hypothesis that the future of business is to develop and own small niches could never be more important than now. We live in an over-choiced world. It's best to stick with what you do well than venture too far afield.

3. Now is the time to make sure all of your brand communications are consistent with your brand image, and the first place to look is your web site. Joe LaPla made an excellent point when he said that "the web site is the front door to your brand." In today's wired marketplace, the internet is the first place most people will go to make decisions about your brand's benefits and quality. A poor web site can destroy customer confidence and potential sales. I continue to see too many companies (especially small ones) with an inadequate web presence. Last week, I interviewed a new CPA on the recommendation of someone I trust. My first step was to look for his web site to make my own evaluation and discovered that he didn't have one. When I met him, I asked why he didn't have a web site and he said that he does most of his business on referral. When I told him that I almost cancelled the meeting because he didn't have a web site despite the referral recommendation, he was shocked. But he also asked me to refer a web development company to build him a site.

4. Now is the time to be your promise on the inside and the outside. People will ultimately make the difference between success or failure regardless of economic conditions, but now is the time to arm everyone on your staff (in every department) of the importance of delivering the brand promise everytime they interact with customers, or anyone for that matter. As a new business consultant, I advise my clients that everyone on staff is part of the new business team. They must be armed with a knowledge of the company positioning strategy and brand promise. And they must be committed to living up to that promise any time and every time they have the opportunity.

One final thought was expressed by all panelists -- a recession is an opportunity to strengthen your brand and emerge in a better position than your competitors if you do the right things. One example cited by Ted Leonhardt is the case of Hornall Anderson, an excellent local design firm that continued to aggressively market themselves during the 2001 economic slowdown and now enjoy a strong leadership position.

As one panelist said, 2009 can be a time of opportunity or calamity. The choice is yours!

Friday, October 24, 2008

15 Best Practices in Web Design

In a recent client meeting, I presented recommendations for a new website design and navigation approach to a group of technicians who were being asked to proofread the new site for technical accuracy. I began the meeting by presenting these fifteen best practice tips to give them a quick education on our thought process. It didn't totally eliminate their design suggestions (as I had hoped), but it did give me a reference point to discuss why we chose to do, or not do, certain things.

1. Know who is visiting your site, and why they came. Most sites have multiple audiences. Make sure your site speaks to all potential users.
2. Using separate landing pages to make each audiences feel that the site is specifically designed and suited for their individual needs.
3. Make it easy to find what they are looking for by using intuitive logic.
4. Use language that your audience understands and identifies with.
5. Get to the point. People can get very impatient on the web.
6. Avoid heavy graphic elements that take time to download.
7. Simplify your homepage to reduce elements and make it easy for site visitors to know what you offer to whom.
8. Make your Search function easy to find and use.
9. Shorter copy, bold graphics and more white space make a page more inviting to read.
10. People read the sections they want to read, not the entire site. Don't hesitate to duplicate copy in the most logical place that audience might look for it.
11. Make it readable for all ages. Avoid odd type fonts and too small type.
12. Avoid scrolling whenever possible. Adding a page is better than run-on copy.
13. Optimize the site with title tags, keywords, and other programming content to improve PageRank.
14. Provide links to important sites to improve PageRank.
15. Keep it fresh, I may come back tomorrow.

Monday, October 20, 2008

Brand Content vs. Peer-to-Peer Content: Which is better?

Here's an interesting tidbit from a new Forrester study on Social Marketing -- brand-generated content still matters to socially connected consumers. Despite all of the marketing buzz that would have you believe that brand marketing has no future, here is a refreshing new report from analyst Lisa Bradner that brand content can actually have more value than peer-generated content. This is especially true for higher-priced products in highly competitive categories, but can be true for all products if the brand has established the right level of trust with their customer base.

The question then becomes "how do you build trust?" Well, it starts with being honest and avoiding the hyperbole of advertisingese that too many marketers still think is the way to get ahead. If the marketing lessons of TIVO fast forwarding haven't sunk in yet, it's time to wake up and realize that the customer is in charge, not the marketer. Today's customer has the wherewithal to select when, where and what content they want to consume. Take a look at this excellent presentation on today's consumer and the value of social marketing engagement by Eric Weaver of Edelman http://video.google.com/videoplay?docid=3948077690728844861&hl=en.

So if you've been asking yourself (or your CMO) if your company should have a social media program the answer is an unequivocal "yes". You cannot deny the fact that traditional outbound tools are becoming less relevant. Old school tactics of shouting and interrupting have been replaced by a new school of engagement. This is an era for marketing of being found, not being heard. Today's successful marketers need to build strong connections between customers and the brand, and increasing the use of social media in your marketing mix is a way to raise brand relevance, affinity, and loyalty.

Wednesday, December 12, 2007

It's Time To Wake Up and Smell the Digital Revolution

Why is it that some of advertising’s best and brightest still don’t get it when it comes to appreciating the impact that the web is having on the advertising business?

Martin Sorrell, CEO of WPP and a man whose impact on the architecture of the modern advertising agency is unparalleled, recently wrote an article for The (London) Times on the digital revolution. In it, he tried to calm the fears of those in the traditional advertising business by comparing the impact of the Internet to that of television in the 1950’s. Here’s the lead paragraph from that issue of The Times:

Sir Martin Sorrell, chief executive of WPP, the British advertising giant, believes that the internet will not prove the death knell of traditional advertising channels. Writing exclusively for The Times, the advertising guru says that, despite “constant competition between the old and new”, the emergence of the internet will not “displace” other platforms. He likens the internet advertising threat to that posed by the advent of television in the mid-1950s.

To Mr. Sorrell, the Internet is just another new medium –albeit a very powerful one- and eventually the Internet will settle in along with other media as part of an integrated media buy. Unfortunately, his view on the subject is inflicting a grave injustice on those in the business who are uncertain about what the internet and the digitization of media will mean for them, their work and their jobs. The digital revolution unfolding today is about much more than the introduction of a new medium into the advertising mix. There is no question the internet as a medium is quite powerful and growing rapidly every day. Studies from Forrester, the Interactive Advertising Bureau, and many others chronicle this fact on a regular basis. But the advertising business is in for a much bigger storm than most, including Mr. Sorrell, can even imagine.

Consider if you will, the undeniable fact that marketers are continuing to shift monies away from advertising, which favors media, to direct marketing and promotion, which do not. While this has been happening for decades, the digital revolution has helped accelerate the shift. This means less advertising in the future and less money for media -- all media. Consider that all media are going digital and that this will fundamentally change how they operate and are consumed. We all know the impact that TIVO and VOD are having on the world of television. Its effect on the print medium is becoming more apparent everyday. I vividly recall a recent occasion when my daughter and son-in-law were visiting. Each morning I got up early, had my morning coffee, and read the local newspaper. My son-in-law also got up early, but along with this cup of coffee he powered up his laptop to read a digital version of the same paper.

The traditional definitions we use for magazine or newspaper or television or direct mail, will become meaningless to most consumers. To them, it will just be news or information or entertainment or games or great offers. Most folks in traditional media are not prepared for this -- and they are powerless to stop it. Yesterday, the media controlled the time, place and message. Today, with the digitization of media, the consumer does. It’s that simple. This new “consumer-centric” world makes traditional advertising and media very uncomfortable as they are used to talking to, or shouting at, consumers. Now, it's about marketers having a conversation with one consumer at a time. But the consumer determines when and where that conversation will take place.

Here in Seattle, this may not seem like news, because we are the most wired city in the U.S., and everyone is directly, or indirectly, involved with this new digital world. But believe me when I tell you that to the majority of the country this is still a foreign concept. Mr. Sorrell’s attitude and understanding of the digital revolution reminds me of a book I read several years ago by David Halberstam, titled The Reckoning. The author chronicled the rise of Datsun (now Nissan) and the concurrent decline of Ford, and attributed much of the blame to Luddites in Detroit who refused to believe that Americans would buy an ugly little box from Japan over an American made car just to save gas. Automakers in Detroit all drove American cars, lived next door to someone who drove an American car, and simply didn’t realize that the world was changing until it was too late.

I fear that Mr. Sorrell must live in that same sheltered environment if he believes that the Internet is just another medium. Digitization of media and communication means real-time interactivity and two-way conversations. Traditional media and advertising agencies that don't embrace this way of operating will go away. Consumers will leave them behind, and marketers will eventually refuse to fund them.

Sir Martin, it’s time to wake up and smell the digital revolution. The Internet is about much more than a new medium, it’s about the end of advertising and media as we have known it!