Archive for May, 2008
Many Marketing Companies & Agencies Hide Inferior Technologies & Services behind “Celebrity” Status & Obscure Language
By Tom Polanski
We have an increasing number of companies moving management of their online media campaigns to us because the agencies they trusted ultimately disappointed them. They saw that the powerful wizard was really a little man behind a curtain, blowing smoke, and describing the smoke in the most arcane terms imaginable. Too many marketing professionals are doing exactly what secret brotherhoods have been doing for millennia….they’re creating a language that only they understand. If the common business decision-maker wants to increase their company’s revenue or brand equity, they have to go through the marketing “priests” to find thier way to profits-heaven. Marketers like to speak a line of lingo only those that have dedicated their lives to understanding online marketing (like me) will understand. And too many of us bandy that language about like insecure college sophomores.
By Tom Polanski
Marketing created to exploit the uninformed is reprehensible. For better and for worse, depersonalization and anonymity are part and parcel of the web. Since online companies no longer have to live and work in the communities they sell their products and services too, they’re left with names and numbers without a human connection. Too many online marketers have forgotten that we’re still doing business with people who have hopes, dreams and fears just like we do. Many of us have lost or have never been granted the gift of empathy and, interestingly, isn’t a lack of empathy one of the hallmarks of the sociopath?
David Berkowitz wrote:
ComScore Chairman Gian Fulgoni suggested as much in his opening day keynote at MediaPost’s Search Insider Summit this week. He stressed that marketers are realizing so much more value from search than they’re paying for, and that means there’s money being left on the table. Here’s some of his analysis as to why (read more stats in my blog’s coverage of the session):
• One-third of ad dollars are focused on brand building, which is the reverse of traditional media, so we need to figure out how to use search and display to increase branding value.
• There are three components of how search drives buying: direct online effects (16%), latent online effects (21%), and latent offline effects (63%), so 84% of the value isn’t being monetized by search engines, and marketers aren’t generally measuring it.
• Enquiro did a study that showed a 16% brand lift when a brand was advertised in the top sponsored and organic results, so even without a click, there was value.
• ComScore’s data shows that only about 5% of Google’s paid links result in a click; the other 95% of ads are really “unpaid links,” yet they deliver value to advertisers.
By Tom Polanski
It’s clear to me that e-commerce businesses are short-changing themselves in a number of ways. First, they seldom factor in offline sales and lifetime value when making marketing decisions. Secondly, many think in terms of net margin (again they don’t factor in revenue from offline sales and lifetime value). In addition, many are still of the, “I spent a dollar, I want two dollars back now“, mentality. This psychology has left many with woefully underdeveloped CRM practices in place. Finally, most fail to understand that because the internet is a giant calculator, everything can be tracked. The ramifications of this are stupendous. One example is that capital intensive testing can be amortized by positive discovery. Each conversion is an opportunity to spawn many more from the first purchase.
By Tom Polanski
Everyone wants to know what the latest and greatest online trend is – but very few people are actually situated to grab it when it hits! How can you capitalize on marketing trends and make them work to your business advantage?
First, don’t try to forecast trends. Many business owners have lost thousands or even millions of dollars betting on what would be the “next big thing”, and the “pet rock” jackpots are few and far between. Instead, watch as new trends begin to look promising and grab onto them before they become widespread.
No matter what business you’re in, watch for trends in the fashion, property and electronics industries. Oftentimes how society reacts to these trends will shape how and what they buy.
You should also look at your target audience and notice their buying habits as well. Ask yourself the following questions:
- How much do they earn? Are they willing to pay more for better service or quality or are they hunting for the cheapest bargains? How likely are they to tell their friends about their experience with you?
- What gender are they and what is their education level? Are they single? Married? Do they have children? All of these questions can impact how well a trend is received and how far it expands.
- How do they view the Internet? Are they technologically savvy? Do they use shopping comparison and research tools or are they likely to buy the first result that comes up when they search?