ANA Marketing Maestros

Generation Y Marketers

By: Irina Gorodetskaya

If you grew up during the MTV era, love everything digital, and began exercising your financial power early, you’re probably an echo-boomer.  We’re also known as Generation Y, millennium generation or baby-boom offspring. As an extremely diverse group with a lot of buying power, advertisers are naturally attracted to us. As a tech savvy group, we refuse to purchase anything if we’re confused or have unanswered questions, which makes it challenging for advertisers to engage with us.  We usually have short attention span and get easily bored or frustrated with ads- many of us are now marketers ourselves.

ANA is conducting a survey on brand management. We are looking for Echo Boomer client-side marketers (born after 1982) to participate in this survey. Preliminary survey results can be viewed here.

The survey addresses three major themes:

• Technology usage and media habits
• Attitudes towards brands and marketing
• Attitudes towards careers in marketing

To participate in the survey, click here.

"Green Living" - Hype or Here to Stay?

By: Irina Gorodetskaya

I haven’t written a blog in a little over a month now-hopefully, the American idiom, “Absence makes the heart grow fonder” will apply here.

Let’s talk “green”--from battery-electric vehicles to solar wing for ferries or yachts, consumers want to use their buying power to help heal the earth.  In the last couple of years, “green” messaging has inundated the marketplace—from subway ads promoting environmental change to “Green is gorgeous” totes—green marketing is everywhere!  The question now becomes, “How much “green” is too “green”?” Green living is starting to look more like a fashion statement than a genuine, beneficial effort to support environmental issues. Despite the current good intentions of the business community and consumers to promote “green”, serious eco-results will depend on making products and processes more sustainable without consumers even noticing it, and, if necessary, not leaving much room for consumers and companies to opt for less sustainable alternatives.

How can marketers ensure their companies stay authentic in the public realm?  Below are several ways to avoid "greenwashing" and establish credibility: 

• Don't go "Green" for "Green's" sake-ensure the product addresses the customers' need first.
• Partner with regulators, elected officials, environmental agencies, and nonprofits. Support from these organizations will enhance your company's “green” efforts.
• Work together with these partners on marketing/communications efforts, learning from their wealth of experience and established networks.
• Place a heavier emphasis on earned media and cause-related approaches, which carry more validity than advertising and other paid media approaches.

So, while it’s great to create products that scream “eco-friendly” because customers want  to express their concern publicly, it’s important to remember to focus on customers’ needs first. Thus, it’s not enough to position a hybrid car as simply cool, it also must convince its owner that the vehicle will save him/her gas money. The green market is a great opportunity to engage with your target consumers because consumers today are not only interested in the eco-friendly products but are in it for the social cause. Join the hype.

Driving Marketing Effectiveness Forward

By: Michael Palmer

ANA offers its members a unique opportunity – to benchmark six of its marketing processes (btw this service is free to ANA members) including:

1. Overall Process Linkage
2. Insights and Marketing Knowledge
3. Marketing Strategy
4. Annual Marketing Planning
5. Integrated Marketing
6. Marketing Measurements (Metrics)

What we have discovered is most interesting.  The two areas that have bubbled to the surface as those where marketers are having the most difficulty (regardless of whether they are B2Bor B2C) - Insights and Marketing Knowledge and Integrated Marketing.  Marketing organizations are horrible about collecting data and turning that data into insightful action – then sharing those incredibly valuable insights internally to drive revenue growth.  Integrated marketing is something we marketers talk about incessantly, but do little about.  This is the area where we have the paltriest of results.

What’s the problem?  First, a consistent weakness is an inadequate marketing library from which success models and critical marketing documents may be easily shared globally. Most companies seem to have a poorly maintained repository of aging and increasingly irrelevant documents which are largely ignored by the employee base.  So the information is collected but no one is using it effectively.  Not very smart when we know that marketing insights drive everything we marketers should be doing.

Secondly, most companies lack anything meeting the definition of a process in the areas of insight development, brand equity building and integrated marketing campaign assembly. Marketers seem to employ an ad hoc approach whose output depends upon the individual brilliance (or luck) of a team leader rather than an embedded, reproducible corporate competence.

And we marketers expect the rest of the company to respect us as business leaders? 

If you are an ANA member company why wouldn’t you want to measure your effectiveness in the six key processes listed above, the fact that you can learn where and how you could increase your marketing effectiveness and thereby increase your marketing leadership would seem most valuable – if this is the case, just send me an email (mpalmer@ana.net) and I’ll hook you up. For those not ANA members who wish to find out where/how you can improve – email me as well and we’ll talk membership.

Marketing & Media Ecosystem 2010

By Barbara Bacci Mirque

Marketing fundamentals have not changed, but the strategies, investments and capabilities required to succeed in marketing are being transformed.  The reshaping of our complex media environment will require changes across the marketer-agency-media value chain.

Marketing & Media Ecosystem 2010 (MME 2010) identifies the priorities, capabilities and partnerships required across the marketer - agency - media value chain to optimize now and prepare for the future. The first phase of this joint study between the ANA, IAB (Interactive Advertising Bureau), AAAA (American Association of Advertising Agencies) and management consulting firm Booz Allen Hamilton was unveiled last year at the ANA 2007 Annual Masters of Marketing Conference. The second phase of this multi-year study, was recently completed by the IAB.

Senior marketing executives recognize the importance of creating a “Digitally Savvy” organization and culture, but less than one in four agree their organizations are currently digitally savvy.  Media companies are  responding to the expectations of marketers by developing creative, offering behavioral targeting, generating consumer insights, and helping calculate ROI as they join marketers and agencies in re-tooling their agenda to drive growth and connect to the consumer.  Marketers indicate that the ability to deliver consumer insights such as behavioral patterns and needs will become increasingly important,  and they are leveraging one-to-one consumer interactions (including ethnography) and digital channels that provide real-time behaviors and patterns.  ANA members are experimenting with making their consumers advocates by shifting marketing objectives from sending a message to facilitating conversations them.

Stay tuned for more updates from this important research in the coming months. ANA members can read the MME 2010 white papers at http://www.ana.net/michome.

ANA phone directory committee seeks better metrics from Yellow Pages industry

By: Bill Duggan

The ANA Telephone Directory Committee recently released an open letter to the Yellow Pages industry, citing “a lack of fundamental accountability metrics and other questionable practices” on four key issues.

Syndicated Audience Measurement Research
In July 2002, the ANA Telephone Directory Committee and AAAA Yellow Pages Committee coauthored “The Need for Third-Party Telephone Directory Usage Research,” a white paper urging restoration of syndicated audience measurement research.  The white paper noted that Yellow Pages is the only major advertising medium that does not provide syndicated audience measurement research.  Such research provides the “currency” for buyers and sellers in other media; for example, Nielsen for television, Arbitron for radio, and MRI for print.  The white paper stated, “It is unthinkable that investment decisions for television and magazines would ever be made without the benefit of audience research.  Why should the Yellow Pages advertising medium be any different?”

The committees were pleased when syndicated audience measurement research was finally reintroduced in the marketplace, via Knowledge Networks/SRI, in January 2005.  While that introduction was only in markets representing 28 percent of the U.S., (versus the 90 percent-plus coverage of such research for other media), at least it represented a start.  However, three years later this initiative is now in peril as the Yellow Pages publishers have dramatically cut back support to only 18 percent of the U.S. population.

Circulation Auditing
In August 2005, the ANA Telephone Directory Committee and AAAA Directory Advertising Committee released another white paper titled, “The Need for Third-Party Circulation Auditing.”  Circulation auditing would confirm the number of directories that are actually delivered, protecting advertising investments from inflated and misstated circulation claims.  That white paper noted, “Currently Yellow Pages is the only major medium that does not provide independent, third-party circulation auditing.  Such auditing has been a best practice in other media for many years. 

The white paper helped influence one major publisher to begin circulation auditing and other publishers to consider it.  Again, a good start.  However, today that one major publisher is rumored to be reducing its commitment to circulation auditing and no other major publisher has participated.

Directory Extensions
While the normal life of a Yellow Pages directory is a year (12 months), it is not uncommon for a new book to be published 13 or 14 months later.  Hence, the life of the older directory is “extended” by a month or two.  When such instances occur (quite frequently), the publisher bills the advertiser for the media cost of the extra month(s).  This, of course, is ludicrous.  Imagine a monthly magazine that publishes in March and then decides to take April off and then sends an additional invoice to advertisers!  In addition to the extra costs—which are often not budgeted—directory extensions further hurt advertisers as incorrect and outdated numbers are given longer life, and new listings (e.g., agents, franchisees, etc.) cannot be included.

Companion Books
Major Yellow Pages publishers have recently begun offering a second, usually smaller, version of the standard directory.  These “companion books” are positioned for use in home offices and other rooms in the house beyond the kitchen.  Most publishers mandate that national advertisers purchase both the primary directory and the companion book.  Meanwhile, local advertisers are not required to buy the companion book.  National advertisers as well as publishers refer to this as “forced bundling.”  National advertisers are upset with the fact that they are not provided the option of a la carte purchasing.

ACCOUNTABILITY, CREDIBILITY, INTEGRITY
Yellow Pages is a $15-billion industry, with national advertisers accounting for $2.3 billion of total spend; it’s a mature medium with growth slowing.  The ANA Telephone Directory Committee’s perspective is that not addressing the issues outlined in this open letter contributes to the limited growth potential of the medium. The committee has called on the Yellow Pages industry to:

1. Make a serious commitment to syndicated audience measurement research, and specifically, reinstate KN/SRI YPMR coverage by 2009 to at least those levels as in 2006 (about one-third of the U.S. population).
2. Make a serious commitment to circulation auditing, and specifically, audit the circulation of at least one-third of all directories by 2009 (the same coverage requested for syndicated audience measurement research).
3. Stop the practice of directory extensions by keeping to a 12 month publishing cycle.  In instances where books are indeed extended, reconsider charging advertisers incremental media costs.
4. Reconsider the practice of forced-bundling of companion books and ideally offer them as an optional purchase to national advertisers.

The current environment provides a tremendous opportunity for Yellow Pages.  Marketing accountability and ROI are senior management imperatives—all marketing and advertising expenditures require justification.  Yellow Pages already provides a unique level of accountability as marketers can track the calls resulting from their ads.  However, without the fundamental metrics of syndicated audience measurement research and circulation auditing, the Yellow Pages medium simply won’t maximize its potential.  Meanwhile, questionable practices regarding directory extensions and companion books hurt the medium’s integrity with advertisers. 

The Yellow Pages medium is approaching a crossroads as it relates to national advertisers.  Which road will the medium take? Stay tuned.

The Agency of the Future Is?

by Mark Fogelberg

Yesterday evening brought me to Mediabistro's "Advertising: The New Creative Agency" event. Speaking to a crowded house um theater er gallery were 7 bright minds of the business:

As I am steadily working on new media / new technology / new way-of-doing-business projects, I expected the event would offer strong discourse and was proven right. From interactive media spend to UGC to YouTube to product placement to digital usurping other media - quite a lot was discussed.
 

The questions moved across a range but one constant appeared. Breakthrough digital creative is still very hard to do very well. One panelist, Trevor Kaufman of Schematic, put it quite well when he stated that online offers the opportunity for bespoke ideas. (Anyone who has priced a Saville Row suit to a off-the-rack alternative should be able to sympathize.)

Plus, great digital efforts are labor intensive, demanding a large investment in production line items. If production dollars are still be seen as "non-working" dollars (in the context of media), then investment equations looked skewed.

 

Meatball "Mon"dae - Embracing New Media

By: Irina Gorodetskaya

Last Thursday, I attended Seth Godin’s presentation at NYU based on his latest book called, “Meatball Sundae Is Your Marketing Out of Sync?”  I always knew that the owner of the world’s most popular marketing blog site and the best-seller author of nine marketing books is smart, but hearing from him in person was invaluable, inspirational and enlightening.

What’s a meatball sundae?

“[The combination of] meatballs and sundae are meant to be disgusting. If you use new marketing, the topping [the fudge, the cherry] just as a spin, you will fail,” Seth said as he slammed out one sound bite after another.

The Meatballs represent the 100 year-old marketing model which means interrupting the market and selling average products made for average people. The fudge and the cherries of the sundae are the toppings, which represent new marketing: blogs, YouTube, Google, Facebook, Wikis, widgets, etc. Meatballs and sundae are two things that don't mix, like just like new marketing and old marketing.

Seth raised some thought-provoking questions:

In the 1980’s, TV Guide sold for more money than ABC, CBS and NBC were worth all together. Today, how come when I go online to look for video - I go to YouTube and not TV Guide?

In the 1990’s America Online became popular because of e-mails and chatrooms, how come when I go online to find friends I don’t go on aolbook?

He then cited Josiah Wedgwood, an English potter who built an efficient factory organization during the Industrial Revolution, to emphasize if you change the media, and the organizations will change too.

Lessons learned:
• To drive sales revenue, marketers must restructure the marketing organization from top to bottom. 
• Embrace the medium, [referring to SEOs] NOT fight the medium.
• If you can own a variety of choices - you win. For example, iTunes get their reveunue from titles that cannot be purchased at any record store.
• Marketers need to establish a direct communication between themselves and the consumers-the more the consumer interacts, the better the company does.
• Authentic stories matter! Stories that work spread, stories that spread are true; stories that are true are authentic.
• If a marketer is trying to solve a problem people do not have, they are INVISIBLE. You cannot spam yourself to success!
• In the Internet Age, it doesn’t matter how many viewers will see your ads, but who the viewers are.

Got Meatballs?

Shopper Marketing – What is This Anyway?

By Michael Palmer

There are a number of definitions, but in the end this is all about collaborating with retailers to advance the shopper’s in-store experience.  Procter & Gamble’s CEO A. G. Lafley coined the phrase, the “First Moment of Truth” – that moment when a shopper (not a consumer – we’ll get to the difference in a minute) is at the shelf deciding what brand or product to put in his or her basket. 

Why is this moment so important – two reasons.  First, shoppers take very little time to make their decisions.  On average they spend 2.5 seconds looking at each section, meaning they can at best only see half of what’s available on the self.  Secondly and most importantly, research tells us that 70% of shoppers decide what to purchase at retail.  If we believe that, and P&G surely does, marketing to shoppers is critical.  But marketing to shoppers today means making their shopping experience more valuable.  Better in some way – easier, less expensive, less time consuming, more problem solving.

Shoppers versus consumers.  What’s the difference?  A shopper is the person who is doing the buying – they can also be the consumer if they are buying for themselves, but they may be shopping for another person.  Mom’s act as both most of the time.  So you have to know who you are talking to.  Are you talking to the shopper, the consumer or both?  The message you deliver must be directed at the right audience at the right time.

Interestingly marketers are paying more attention and carving out significantly more dollars to their shopper marketing efforts.  But a number of questions remain.  Is this another trend or is this a real marketing strategy that can in fact generate a competitive advantage?  Safeway has since 2005 begun introducing “Lifestyle” stores – they now have more that 400 of these retail outlets.  These stores feature warmer lighting, more readable product labels, and they focus on engaging the shopper’s purchase interest by delivering a consistent brand message through very available communications channel.  Safeway is working hard to make the shopping experience more enjoyable.  This I suggest is a concept that is hear to stay.  Marketers – if you are not already on this train, you will have to run to catch it as it has already left the station.

In subsequent blogs we’ll begin to delve into what we know and don’t know now about this arena and how you can either catch this train and get on board, or find ways to upgrade your seat and gain that competitive advantage that will drive your brand sales.

How-to's Video Hyperlink Advertising...The Next Consumer Hot-Button

By: Irina Gorodetskaya

Have you ever wondered how to prevent a double-chin or redeye when you are being photographed for your executive portrait? Or wondered how street performers earn their living from the coins and bills dropped in their hats or instrument cases?

Instructional videos are nothing new, but online video hyperlink advertising in the how-to space presents a new and exciting opportunity for advertisers. In a consumer-centric world where consumers have the ability to skips ads and time-shift content, advertisers are forced to come up with unique ways to engage them more effectively. Some advertisers heavily depend on word-of-mouth marketing and others are turning to in-game advertising as affective ways to captivate the consumers’ attention. Video hyperlink advertising embodies the benefits of both: it features brands as experts in the field (builds trust) and since the consumers already chose to view this content, they do not see ads as intrusive. Imagine how persuasive and effective an ad that's advertising a whitening teeth product to a consumer who is looking at How To Whiten Your Teeth video would be.

So now you found that consumer whose interest is relevant to your product, what about reach? Relevance and reach are equally important. With statistics like an average person spends 1.4 hrs/per day on the Web compared to 4.4 hrs/per day watching television, who has time to dedicate all of their spare time to watching online videos? Well me! But for the rest of the population, to be a successful video sharing website, you need to offer your content across multiple platforms.

So who is doing it? Howto.TV is an instructional video website that contains video hyperlink advertising, but they have not yet offered consumers the ability to watch their content in different formats. Howcast.com, on the other hand, a recently launched website that encompasses both user-generated content and the quality of professional video studio, offers its content via online, broadcast and mobile. If the two would combine the idea of video hyperlink advertising and the high quality videos that available across various mediums, how-to video advertising has a high potential of becoming the next consumer hot-button. The variety of topics such as the practical “How To Dress For A Job Interview” video or the bizarre “How To Deal With A Smelly Coworker” offer advertisers who may have thought that their product did not fit into the social media space a chance to taste buzz marketing.  With a similar production and business model (in terms of producing cost-effective videos) to Current TV, Howcast.com will succeed in the advertising space. I am excited to see what their advertising model will be and how the ads will impact the website.

Check out one of my favorite Howcast.com videos, "How-To Public Speak:"

What if the Bottom Fell Out?

by Mark Fogelberg

It wasn't too long ago that Google's revenue growth trajectory seemed comically cosmic. Quarter over quarter increases in excess of 40% were the norm. Revenue from Sponsored Results and AdSense have allowed the company to fund its entry into a number of areas.

Were it not for its motto, "Don't be evil", I would wonder how Google would allow an entity such as CustomizeGoogle to exist.

CustomizeGoogle (CG) is a Firefox browser add-on that basically allows the web browser to take full control of their Google experience. This includes removing all of the ads on search results pages! While I understand that Firefox represents a minority share of the browser market and CG has a small(ish) user base, Google is walking away from respectable numbers of ad impressions (and potential clicks).

Yes, ad avoiders are ad avoiders but TV commercial audio follows you to the kitchen; magazine ads switch from left page to right page opposite editorial; DVRs require button pressing to skip commercial pods. This technology completely removes the ads. Period.

(a search for a color laser printer with ads on)

(and without the ads - check out the white space)

So, what if in the future Firefox ended up with a majority share of the browser market and CG were a built in? How could Google cope? I can't answer those questions but I would imagine that the brains at Google must have answers on how to capitalize on lost revenue opportunities.

It would be jarring to most interactive marketers if the bottom fell out of Adwords. But since Google owns little, old YouTube (59 million monthlies and counting) and, as of today, Doubleclick (see the press release), it seems likely a sturdy, new floor could be built.