Convince and Convert Blog: Where Social Media and Email Collide

AdAge revealed recently that the New York Times reported a steep 17.9% decline in ad revenues for July. Not unexpected, as many print behemoths are getting pummeled in this economy. (See related post “Is Digital Marketing Killing Magazine Ads”) However, NYTimes.com and the company’s other online efforts grew only .9% in July, compared to double digit increases throughout most of the past year. 

My initial thought was along the lines of “what’s the big deal? they still grew .9% which is 10.8% annualized and that’s not bad.” 

But, once I started to look more deeply at the data, I found two revealing patterns that explain the sudden stop in NYTimes.com ad growth.

Obama - the King of Web Traffic

Looking at NYTimes.com data from Google Ad Planner I found that NYTimes.com, WashingtonPost.com and other print-based portals showed significant growth in average daily visits from January through March of this year. While of course there were other national and world events during the first quarter of this year, the rise of Obama and his unexpected (to many) vigorous challenge of Hillary Clinton was a recurring and dominant news story. 

NYTimes.com traffic past 12 months:

WashingtonPost.com traffic past 12 months:

To see an even more pointed display of the Obama Effect on Web traffic, here’s the Google Insights search volume graph for “Barack Obama” for this year. Note the huge spike in searches in the first quarter.

“Barack Obama” search volume - 2008

Now that Obama has the nomination and we don’t have daily Barack v. Hillary drama, search volume has cooled (although a recent spike (convention-related?) is evident). This no doubt is a bellweather for overall public interest, and examining the more recent traffic for NYTimes.com and WashingtonPost.com demonstrates this effect. While Google doesn’t provide exact figures, I estimate a total daily audience erosion of 25% for NYTimes.com and 45% for WashingtonPost.com from Obama-mania to today. 

Expecting NYTimes.com to continue growing ad revenue when traffic dips considerably is unrealistic. The bigger question is whether they can hold on to the ad revenue they have, now that the Obama effect on traffic is waning.

Blogs Are Beating Traditional Media Powers at Internet Publishing

The Obama effect is not limited only to traditional media portals. Spikes were seen for all the major political-oriented blogs (most of whose readers also read NYTimes.com, according to Google Ad Planner). Dailykos.com, Huffingtonpost.com, Thepolitico.com, Realclearpolitics.com, et al all showed spikes that looked like this:

HuffingtonPost.com traffic past 12 months:

Notice that even though HuffingtonPost.com and the rest of its blog-based brethren were helped by the Obama effect in the first quarter, their traffic today is HIGHER than it was at the beginning of the year pre-Obama. 

DailyKos.com traffic past 12 months:

I interpret this as Obama mania driving significant number of Web visitors to sample sites that they may not have used much (if at all) previously, most notably the high profile, opinionated, and hyper-current political blogs. These sites have been able to hold on to substantially greater portion of their increased audience than have the traditional media portals. 

To me, these findings call into question the ability for traditional portals to continue growing significantly. It appears that as media continues to fragment and consumers have more and more choices, blog-based journalism seems to resonate with a greater percentage of the population. 

Obviously, traditional media portals aren’t going away. After all, NYTimes.com does have 6X the audience of the Huffington Post. However, given that it costs peanuts to produce the Huff compared to NYTimes.com, and given the traffic trends examined here, over the long-term I see the uber blogs becoming more and more dominant, provided they don’t lose their opinionated appeal as they grow.

It’s increasingly clear that consumers want a dash of opinion with their news, regardless of medium, and their journalistic credo and huge overhead is going to make it a difficult future for the newspaper-based Web sites. Ultimately, it spells a slow death for NYTimes.com and other traditional media entities.

Related: Why the Murder of Old Media is PR’s Best Chance

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Times are tough.

But one area that is ready to soar is pay-per-click search marketing (PPC). That most measurable and controllable of digital marketing opportunities, PPC looks like a no-brainer in this economy.

Have you called a newspaper lately and asked them if they’ll charge you per phone call generated? Even with ad sales down 14% year over year, they won’t do it. 

Thus, with the holiday season approaching and a flinty consumer base not exactly killing themselves to buy the latest electronics or must-have toy (it’s Foreclosure Elmo), PPC looks like a no-lose proposition for retailers and e-tailers.

PPC - The Rich are Going to Get Richer

With PPC spend already up 52% in Q1 2008 versus 2007, the number of PPC advertisers and the money they’re going to throw at clicks is about to get insane. The competition for clicks, leads and sales in the 4th Quarter is going to be fierce, and I suspect there will be some “make us #1 no matter what” money in the game as casual PPC advertisers pull money from TV and print. 

It’s going to require exceptionally smart bidding (think day-parting) and a serious commitment to landing page testing to succeed. 

The problem is, this huge thirst for clicks is going to drive average cost per click through the ceiling. Google is already substantially most expensive on a per click basis than is Yahoo or MSN. Further, according to Efficient Frontier and their excellent Q2 search engine report (PDF) Google is getting $1.10 of each new dollar of PPC spend (Yahoo is minus 9 cents, and Microsoft is minus 1 cent). 

PPC - The Rich Are Then Going to Get Poor

The price of a click on Google is going to go WAAAY up over the holidays. So much so that ROI on those clicks will inevitably diminish, especially with consumers in “I think I’ll go to the Hickory Farms store in the mall and have 11 free samples and call it lunch” mode. 

At the end of January, hundreds of thousands of PPC advertisers will look at their reports (especially Google) and say “this isn’t worth it anymore.” 

February 1 will be the day the music died for PPC, and a long period of very modest growth will ensue as newcomers adopt a “we tried that back in 2008 and it almost broke us” mentality. 

Get yourself a killer test plan, a shot of Jim Beam (hat tip to Jason Falls) and manage client (and your own) PPC expectations. It’s going to be quite a ride. 

The National Hockey League has rolled out a series of compelling TV spots featuring some of the game’s biggest stars.

And while the new commercials - with a theme of “Is This The Year?” will run nationally on Canadian broadcast and U.S. cable television, like so many campaigns, it’s being forced to go it alone.

How About Some Synergy?

Instead of launching an integrated effort, it appears that this is a TV-only exercise (created in-house by the NHL with creative consulting from Y&R).

- A search for “NHL” on Google finds no mention of the campaign in either paid or organic listing.

- The official NHL Facebook page doesn’t mention the campaign, and doesn’t link to the ads.

- The spots are not on YouTube (although they are on the NHL.com site).

- The ads are not specifically touted even on the Web sites of the featured players’ teams.

A Huge Social Media Opportunity

If there’s one sports league that could and should capitalize on social media marketing, it’s the NHL. It’s downright cultish, and very few people are ambivalent toward it. So many easy social media programs could be launched.

Contests to make your own “Is This The Year?” commercial. Contests to describe why this is indeed the year for your team. Guest blog posts from the players in the commercials. Uploading the spots to YouTube, including a “Making Of” video that shows how the innovative commercials were produced. Linking the spots from players’ Facebook pages.

And in the digital marketing realm, campaign elements might include: buying banner ads that include the commercials using rich media, video ads on Hulu.com and other sites, buying PPC ads that link to the spots, and having each team email links to the commercials to their season ticket holders.

The geo-targeted possibilities are enormous, because the NHL actually cut 2 local versions (featuring local stars) for every team in the league, and these spots will roll out soon after the national effort launches.

It’s amazing that the NHL would create what appears to be something like 70 TV commercials, and not back them up with anything in the digital marketing or social media marketing universe except for putting them on their own site.

Do you agree, or am I being too hard on the ice gang? Other examples of missed social media opportunities?

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From Dot Bomb to Dot Boom

Let’s face it. The economy is taking on the distinctive, sickly pallor of a post Mardi Gras Keith Richards.

Generally, recessions hit the advertising business with the ferocity of a rabid wolverine, and the last one trimmed overall ad spending by 9% according to market researchers Veronis Suhler Stevenson. The wolverine in question mauled and devoured online advertising, which plummeted 27% over two years during the last recession.

This time it will be different. Not only will online marketing survive, it may actually thrive during the lean times, continuing its inexorable theft of ad spend from traditional media tactics. Online is far more mature and proven now, and there are five specific reasons why it will be the go-to tactic among increasingly budget-conscious marketers.

Money Talks

First, online is typically less expensive than many other marketing tactics, and a sizable and impactful online effort can be undertaken more quickly and cost-effectively than can an offline campaign.

Wiggle Room

Like an Elizabeth Taylor marriage, online doesn’t require much long-term commitment. PPC ads can go up and down on a day-to-day basis. Email can be sent (or not sent) based on financial considerations. Even banner ads can usually be negotiated with an advantageous cancellation clause of 72 hours or so. Try that with your local TV station or newspaper. Other than keeping your Web site up to date, the only core online tactics that require substantial ongoing effort are organic search optimization, and Web site analytics and testing.

More Juice for the Squeeze

With diminished outbound marketing budgets, companies will shift focus toward increasing revenue from current customers, either through more frequent purchases, or larger ones. Email marketing is the perfect vehicle for communicating with customers and incentivizing additional purchases. Customer lifecycle marketing (persuasively combining email with direct mail, voice mail and text messaging) will gain favor as companies strive to close a higher percentage of a reduced flow of leads.

Waste Not

There is meaningful financial waste associated with advertising to people who have no interest in your product or service. The superior targeting ability of online marketing will enable companies to focus their reduced marketing dollars solely on likely prospects. This will accelerate the trend toward use of behavioral targeting and retargeting in online ad placement.

Behavioral targeting mines a person’s Web page visits and search terms to serve relevant ads. If a prospect reads several pages on Yahoo! about Nissan Altimas and does a search on Yahoo! using a related term, an ad for Valley Nissan dealers can be served up just in time.

Retargeting (a nascent industry led by local company Fetchback) takes the concept one step further, enabling companies to advertise only to people who have visited their Web site previously without making a purchase. With average conversion rates hovering around 2%, this is an ideal way to reach the other 98% that have taken the time to visit your site but haven’t yet converted.

Additionally, search marketing will continue to expand since it is the only tactic (other than Yellow Pages) that puts the marketer in the middle of the consumer’s purchase psychology funnel. I expect heavier bidding on specific, “long tail” search terms that often correlate with greater intent to purchase.

Numbers Don’t Lie

Online marketing of all types offers superior measurability and trackability in comparison to traditional tactics. This is of course due to the Orwellian nature of the Web, where every mouse click is tracked, usually anonymously. While the availability of this data may give you the same creepy feeling you get when gazing upon Joan Rivers, it makes for effective marketing.

When implemented correctly, banner ads, organic search, paid search, blogs and social media, email, lifecycle marketing and all other online marketing tactics provide a user by user scoreboard that can be utilized to ascertain precise return on investment metrics for each campaign.

In this way, online marketing provides companies the ability to test a wide array of tactics, evaluate which generates the best response, and then adjust the marketing program accordingly.

The old saying is “I know half my marketing dollars are wasted. I just don’t know which half.” This problem is even more acute and painful in a down economy when advertising dollars are curtailed. The inherent cost, targeting, and tracking advantages of online marketing make it more likely to succeed (or at least able to minimize losses from a failed campaign). And when a wolverine is at your door, that’s the type of assurance you want from your marketing strategy.

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I just finished giving a speech at the western region meeting of the National Council for Marketing & Public Relations in Sedona, Arizona. 

NCMPR is the association of community and technical college marketers. A really interesting group that needs to harness social media and work with prospective students on an individual, relevant, highly personal basis. 

While this presentation was specifically for NCMPR, there is a lot of material that will be valuable to anyone looking to launch and maintain a social media and digital marketing program for a mid-sized business or organization. 

Key points in this presentation:

- Media outlets have exploded, causing audience fragmentation

- You have to communicate to audiences individually, because they don’t herd together like the old days

- Using the power of audience segmentation

- Digital marketing is critical in this new hyper-targeted marketing world, because online users identify themselves through their search queries and site usage

- Ways to find prospective community college students (Twitter, Facebook, Blog search, Flickr)

- Web site is the key to translating awareness of your college (or any brand) to action

- Web content needs to be transparent, real, and multi-modal

- Lead acquisition is critical for colleges. Give users multiple call to action options. 

- Secrets to good form design

- Web site testing and optimization basics

- Lead nurturing via personalized follow up and triggered communications

Comments are very much appreciated. Enjoy. 

I am of a vintage that was shaped by Van Halen’s album (actually a cassette for me) 1984. With Jump, Panama, and Hot for Teacher (a video that joins “Hungry Like the Wolf” in my early teen pantheon), this was a truly epic record - highlighted by David Lee Roth’s bad boy caterwauling. 

And then, he screwed it up. Went solo. Recorded novelty hits like Just a Gigolo and California Girls, which were only slightly more legit than Weird Al Yankovic shlock. 

From 1985 until the inevitable bittersweet reunion tour in 2007, both Roth and his former band mates suffered, never recapturing their former glory (despite the yeoman efforts of Sammy Hagar). 

Internet Marketing is Not a Solo Act

Ultimately, it was proven that David Lee Roth was better as part of a group, than he was a solo artist. And the same is true of your Internet marketing efforts.

Many (and perhaps even most) agencies I talk to are trying to add digital marketing services to their capabilities by hiring their own David Lee Roth. A guru. A turtle-necked Web geek that can do it all. Don’t make that mistake.

Here are 3 reasons why the one man show routine doesn’t work.

1. It’s Unknowable

Digital marketing is a paradigm and a platform, not a job function. You can’t hire somebody who does “digital marketing” the same way you hire a copywriter or an account executive, or an art director. The field of Internet marketing is now far too broad and the nuances too numerous for one person to be able to cover all the bases on a practitioner level.

There is no way I could actually execute on the full array of tactics the way I did in 1995-2002 when the variety of tactics was semi-graspable.

The biggest mistake agencies (and clients) make is believing that the same guru that is designing and/or programming Web sites on your behalf can also handle the marketing of those Web sites. They cannot. The two skill sets are almost opposites.

Web design is a project-based, creative, inward-facing, technology-driven process. Internet marketing is an ongoing, methodical, outward-facing, relationship and message-driven process. Other than a little initial search optimization on recently completed sites, Web designers are not doing Internet marketing.

2. Knowledge in a Silo Cannot Expand

I very much believe that eventually we won’t have digital marketing departments or even digital marketing agencies. As digital (Web, mobile, digital outdoor, etc.) becomes fully integrated into the lives of a majority of the developed world, “digital marketing” will be a component of every campaign.

This convergence is already happening. Public relations and search engine optimization are blending. The growing use of video advertising online. Direct mail campaigns that use personal URLs that lead to individualized landing pages - are those “traditional” tactics, or “digital” tactics?

Eventually, digital won’t be given the special treatment the way it is today. You wouldn’t have a “radio department” and eventually you won’t have a “digital department” either.

If digital will be a part of everything, isn’t it imperative that everyone in your agency (or in-house marketing department) understand digital marketing to some degree?

If you have a guru, it gives EVERY other member of your team a built-in excuse (that you provided) to not have to get up to speed on digital marketing.

3. Asking for Trouble

If you hire a guru to handle all of your digital marketing and centralize that understanding, it creates an operational bottleneck in your organization. It’s not even a hub and spoke model. It’s just hub. Every brainstorm that requires digital thinking requires the guru. Every client meeting. Every pitch. When the guru is sick, the digital effort is grounded.

Plus, how many accounts can the guru work on competently?

It’s an extremely inefficient way to manage your personnel.

Further, since the guru gets to work on all the big accounts (because all the big accounts will want digital marketing), the guru develops quite a resume. Consequently, the guru will be endlessly recruited (perhaps even by your own clients). Eventually, the guru will leave for another opportunity that doesn’t require the ball juggling of an agency, and may include free lunch, stock options, and a big office.

Trust me. The guru will leave.

And then what? When the sum total of your organization’s digital marketing expertise walks out the door, how do you keep providing services to current clients, much less attract new ones? Typically, agencies faced with this scenario try to find Guru 2.0 which of course just perpetuates the problem.

Don’t Be Seduced by the Guru

I know fully embracing and integrating digital marketing is hard. If it wasn’t, I wouldn’t have started a consulting company to assist. The pull of hiring one person to make the pain go away is strong. But don’t fall for it.

Make a plan to distribute responsibility for digital marketing tactics to multiple members of your team. One person handles SEO. One person handles Email. One person handles online media buying. Clearly, once you have a concentration of clients that need digital marketing services from you, you may want to add staff to work on tactical execution. But until then, remember one critical fact:

Internet Marketing is Complicated, But It’s Not Hard

If your staff is bright enough to work for you, they’re bright enough to figure out part of the digital marketing arsenal.

Do you agree? What are your cautionary tales or success stories about Internet marketing gurus? I’d love to hear your comments. Let’s discuss.

AdWeek announced today that security software maker McAfee has hired Tribal DDB as their agency of record. In addition to digital marketing, the assignment includes TV, print, and outdoor. 

Note that Tribal DDB is the excellent digital marketing sister of DDB. These guys know their stuff. I’ve met a few Tribal DDB folks via my work with ExactTarget. But historically, Tribal DDB has been a large but “regular” digital marketing shop. 

Warning. This is just the beginning

Tribal didn’t just beat out a bunch of other digital firms for this account. They were selected as AOR over big league integrated shops including Young & Rubicam and Dentsu. Wow.

As I’ve been saying (especially in my post “Agencies Wake Up - Digital Shops = Trojan Horse“) digital marketers have a much better handle on ROI, testing and optimization, and audience segmentation than do most of their traditional counterparts. Clients increasingly want to minimize ad risk and are willing to engage in several targeted tactics rather than one huge TV campaign.

If the traditional advertising agency community doesn’t see this win by Tribal DDB as a clear sign that the game is changing, I don’t know what will.

What is your agency doing to be able to compete with digital specialists?

How long will it be before digital agencies being agency of record becomes commonplace, rather than an exception? Leave a comment and let me know what you think. 

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My 5 Workshops that train agencies on Internet marketing

Web services giant Sapient recently fielded a national online digital marketing survey of more than 200 chief marketing officers (CMOs) and senior marketers responsible for managing digital budgets (among other things).

Survey respondents were asked about the top qualities they sought in their advertising and marketing agencies in the coming year.

Sapient’s Top 10 Wish List for Agencies of the Future…and My Comments

1. Greater knowledge of the digital space. With more than a third of marketers surveyed revealing that they are not confident that their current agency is well-positioned to take their brand through the unchartered waters of online digital marketing and interactive advertising, it’s clear that agencies need to have a greater knowledge of the digital space in order to thrive. In fact, nearly half (45 percent) of the respondents have switched agencies (or plan to switch in the next 12 months) for one with greater digital knowledge or have hired an additional digital specialist to handle their interactive campaigns.

This is another in a series of warnings from me that traditional agencies NEED to get uber-competent at digital marketing now. Clients are switching agencies based on digital marketing knowledge. See my post “Wake Up Agencies - Digital Shops = Trojan Horse” for more.

2. More use of “pull interactions.” When trying to engage consumers with their brand, 90 percent of respondents agree that it is becoming increasingly important that their agency uses ‘pull interactions’ such as social media and online communities rather than traditional ‘push’ campaigns.

No question this is true, and it will be even more acute in 2010 when Millennials (who prefer organic sources of information and recommendations) become a larger demographic cohort than Boomers or Gen X. 

3. Leverage virtual communities. An overwhelming 94 percent of respondents expressed interest in leveraging virtual communities (public and private) to understand more about their target audience.

This one is a little fuzzy for me. It sounds like market research using social networks. That can work, but if this list is in order, no way is this #3 for the future of agencies. On a related note, check out Rapleaf. They take a database (your client’s email list, for example) and cross-reference it against all the social networks so you can figure out if you should emphasize MySpace, Facebook, LinkedIn, or something else. Cool, and potentially massively useful. 

4. Agency executives using the technology they are recommending. Ninety-two percent of respondents said it was ‘somewhat’ or ‘very’ important that agency employees use the technologies that they are recommending. For example, it is important that agency executives regularly use Facebook, Flickr, wikis, blogs, etc. in their personal social media mix.

The fact that this even made the list is an indictment of the advertising profession. If you’re going to pitch a social media campaign to a major client, you might want to have a Twitter account (among other things). It’s like SEO firms that aren’t ranked anywhere on Google for their own services. The Emperor has no clothes.

5. Chief Digital Officers make agencies more appealing. Forty-three percent of marketers surveyed said that agencies with chief digital officers are more appealing than those without.

I agree that having somebody in charge of digital strategy in an agency can be beneficial (disclosure: I had this role at Off Madison Ave for nearly 3 years). However, that approach only works if the agency has many digital experts, and just needs someone to steer the ship. Too many small and mid-sized agencies far prey to the “guru syndrom” and hire one Internet guy to handle all digital marketing for their agency. Big mistake. If that guy leaves (and he will), you’re screwed. And, centralizing digital expertise gives the rest of your staff an excuse to not get better at digital marketing. Don’t do this. See my series of training workshops for agencies on how to not get your whole agency competent at digital marketing. 

6. Web 2.0 and social media savvy. Sixty three percent of marketers surveyed said that an agency’s Web 2.0 and social media capabilities are ‘important/very important’ when it comes to agency selection.

Yes. Related to a couple of the points above. However, it’s critical for agencies to have a social media strategy for their clients, not just a random collection of social media tactics. Building a wikipedia page is not a strategy.

7. Agencies that understand consumer behavior. Seventy-six percent of respondents deemed this as an ‘important/very important’ aspect of their agency’s online digital marketing and interactive advertising area of expertise.

Isn’t this what agencies are supposed to be doing now (never mind the future)? This will be a huge determinant on agency winners and losers in the future, because Google and others will take away agencies’ revenue streams that are procedural rather than strategy and creative-driven. See my post about Google looking to crush agencies for scary details. 

8. Demonstrate strategic thinking. Seventy-seven percent of marketers surveyed ranked strategy/brain trust capabilities at the top of their agency wish list.

Yes. See #7. Same thing in my book. 

9. Branding and creative capabilities. Sixty-seven percent of respondents ranked branding at the top of their agency wish list while seventy-six percent ranked creative capabilities as ‘important/very important.’

This one is definitely more future looking than some of the others. At present, especially for the mid market, digital marketing can sometimes be very successful without great branding. But that will change, and agencies MUST get their creative teams comfortable with digital. How do creative directors get away with “I don’t really understand online, so I have our junior art director do that stuff”? Would that work for radio? For outdoor? For magazine? Well guess what, Internet advertising is larger than all three of these media types (U.S. annual spend).

10. Ability to measure success. It’s no surprise that marketers want an agency that can report on where campaigns succeeded, fell short and where they should be fine-tuned. Sixty-five percent ranked analytics at the top of their agency wish list.

This is the secret weapon of digital marketing and what makes it superior to traditional in some ways. Agencies that aren’t using the inherent measurability of interactive marketing to their advantage are missing the boat. The reason digital marketing will thrive in the recession is its targeting and tracking components. 

What do you think? Are there other attributes the agency of the future must have? Jetsons-style flying car? Extreme Wii proficiency? Please leave a comment with your ideas.

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A One Legged Stool

There’s no question the Internet has been good to me. The last two jobs I had before getting involved in Internet marketing in 1994 were spokesman for the Arizona Department of Juvenile Corrections (prison tours), and marketing director for Waste Management (landfill tours). I prefer this gig as it is smell and horror-free.

I’ve been doing the Internet thing long enough, however, that my hype detector is finely honed (when I hear the words “designer dog” my nose runs). And lately, the more I read about this new online boom, the more Kleenex I grab.

No question, online marketing has many enticing characteristics like trackability, ease of implementation, and targeting (all of which I’ve chronicled in these pages). But I’ve witnessed more than a handful of conversations recently where clients and even agencies have pondered “maybe we should only do online?”

The Internet Isn’t Magic

That chalk mark on the ground? That’s the line between enthusiasm and crazy, and you just crossed it. People are being lured into an illusory sense that just because it’s digital, it defies the laws of marketing. That just because a trial campaign was boffo, a 400% increase in budget should yield a commensurate increase in results.

There are a few, highly targeted businesses – especially those that operate only online – that can succeed with a purely digital marketing approach. But for most real world companies, online-only (or even online dominant) marketing will not succeed.

The Difference Between Demand Creation, and Demand Fulfillment

Why? Because at its very core, digital marketing fulfills demand much better than it creates it. The digital tactics that work best (email to current customers, search marketing, highly targeted banners, social media) work because they reach an audience that is either already aware of your company, or susceptible to your charms based on their needs and lifestyle.

At any moment in time, there are a finite number of prospective customers that are aware of your service, interested in your service, and online. Thus, there is a ceiling on the effectiveness and size of any winning digital campaign. Approximately 100 people will search today for “RV rentals.” And not much can be done online to increase that number. You can do everything possible to maximize your exposure to those 100 searchers, but that’s the size of the potential customer pool via search at present.

To grow the pool of people who are clearly interested in RV rentals (as evidenced by their search query), you have to use the much maligned and uncool world of traditional marketing. By using print, broadcast, direct mail, event sponsorship, and public relations you can grow the awareness and demand for your product or service, and PRESTO that demand will show up online.

Learn From Cupcakes

For example, an examination of historical search volume for “cupcakes” shows a consistent, slightly increasing number of daily searches from 2004 through 2006. Beginning in 2007, when the media began running frequent stories about the new gourmet cupcake trend (no doubt prodded by professional PR practitioners), search volume for “cupcakes” spiked, with a 300% increase.

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1+1=3

At Off Madison Ave, (where I handle strategic planning) we often engage in a tactic called “Media Isolation” to measure this effect and produce efficient media plans. Try it for yourself.

Take a two to four week period and run only PPC and SEO. No other outbound efforts. Then, keep the search campaign up, and add offline tactics. Reexamine results of the search program. Then, take down the traditional campaign, and continue running the search campaign.

What you’ll find in essentially every case is that the initial online campaign produces results that increase by 50-100% when traditional media is added. But most interestingly, the search campaign continues to perform better than it did initially, even when traditional media ceases. Why? Because the traditional program increased demand, and then the online tactics fulfill that demand.

This concept that offline marketing improves online marketing is powerful, but it can sometimes take a while to prove, when you consider that search latency (the time lag between when a consumer first searches for you and when they buy) can be as long as 90 days. Look at your reports in three and six month increments, not just monthly intervals, to help identify these relationships and trends.

From a marketing strategy standpoint, maximizing the effectiveness of your online efforts is a great first step, as the available data and feedback immediacy produce ROI faster than other tactics. But if you want to seriously grow your customer base, you have to put down the black turtleneck and Red Bull and employ a true mix of marketing approaches that work together to increase the number of people that care enough about your product to bother looking for it.

What do you think? Am I being too hard on Internet marketing? Leave a comment

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It was bound to happen, and now it has. A big-time digital agency (R/GA) has opened up a full-fledged brand development arm.

And whom do you think they will be competing against with this new branding department? Other digital agencies? Nope. They are aiming for traditional agencies and the branding, media placement, and creative budgets they enjoy. The division is headed up by an ex Wieden & Kennedy executive.

To quote from AdAge:

Branding is a logical progression for R/GA, an agency that focuses on digital design for clients — for example, its Nike Plus work. It’s also another example of R/GA’s aggressive expansion into other marketing disciplines; the shop was originally known for its web work but has added TV production and media planning in the past few years. 

Digital marketing is going to grow. That’s unquestioned (see blog post about growth rate). But the smart digital agencies aren’t satisfied with consuming that piece of the marketing pie. They figure that if they can master the digital component - widely recognized as the most complicated aspect of marketing - surely they can handle traditional branding and advertising. I see a horse. His name is Trojan.

As social media (see blog post on social media’s role) becomes a more important part of public relations, this argument becomes more valid. It’s further supported by the increasing ties between online and offline media, with traditional media tactics driving traffic to landing pages (see blog post about landing page testing) and campaign microsites.

This is not just a national, big agency trend. In every market in the country, digital agencies are adding PR 2.0 divisions to specialize in social media, and are trying to deliver traditional services. With the digital marketing DNA being firmly rooted in measurement and analytics, digital shops are using tracking reports and low cost new media tactics to convince advertisers that they know a better way.

Forty Agency in Chandler, Arizona is a good example. Formerly a Web design and application development firm, they have branched out into branding and social media PR. They’re not doing broadcast production or traditional media buying, but that’s a logical next step. 
 

Agencies, the time is now

This is the official call to arms. Traditional agencies have to get serious about digital marketing now (see blog post about how to embrace digital). Not only are you not tapping into your clients’ digital budget, but you run the risk of those clients beginning to think that their beloved advertising and PR agencies just haven’t kept up with the times.

Agencies that want to do the “easy” digital stuff like building Web sites, but don’t want to get their hands dirty with SEO, analytics, or other numbers and process intensive services just perpetuate clients’ thinking that digital shops understand the future better than traditional firms.

It’s not too late. Is digital marketing complicated? Absolutely. Is it out of reach for advertising and PR firms that want to commit to it? Absolutely not. But you have to take the plunge pretty soon, or the curve to catch up will be exceedingly steep.

Comments? Any digital agencies want to admit to their master plan? Any traditional shops feeling threatened and ready to do something about it?

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