When Will the Volume Game Turn Down?

One of my favorite clients, the CEO of a Fortune 500 company, used to say:
If the marketing makes customers buy stuff from my store, then keep doing it. If it doesn’t, quit doing it.
He especially loved to say this when the media planners would come in with stacks of stats and research telling the board why the marketing was a great idea…even though it didn’t create results long term.
One of the reasons I love your blog is because it’s based on using COMMON SENSE. I think marketing, social media needs to be looked at from a practical point of view and things usually work out. Maybe that’s boring but I’ve found it’s true.

simply put .. not all your customers are online all the time. nor will all your customers who are online be aware of your social strategies. the disconnect maybe not in the media but in the value of the messaging for the customers. just a thought …

Perhaps it would work better if the brands actually used physical interaction more effectively when their users plugged in. Examples:

* You plug your Macbook into the Apple charging dock as opposed to a Samsung or generic one – it recognizes your an Apple client and seeks out your settings. It rewards you with a free download from iTunes for brand loyalty.

* You use your Samsung smartphone from a Samsung-powered WiFi area. Again, recognition reaps reward – your smartphone number is applicable for bonuses from Samsung (downloadable ringtone, game, business app, etc).

The point is that instead of spending millions for people to use competitor products, they’re encouraged to use yours and either consciously or sub-consciously that’s who they seek out when traveling.

Simplified examples, yes. Workable? That’s up to the advertisers.

What you are writing about is traditional advertising, a broken and outdated form of communication used by people who, for all their merits, don’t really know what else to do. Their messages are unimaginative and forgettable … their methods haven’t really changed in decades. There are exceptions, as you state, like Apple because the messages are fun, shared, and strike a chord with the right audiences. But Apple stands alone in a vast wasteland of uncreativeness in the advertising business.

Chris,
Advertising is not the answer to everything, but neither is social media. Those who say advertising doesn’t work any more most, don’t have any experience with it or they simply don’t know how to do it correctly.

No one tool is right for everything. Advertising is right in certain situations, social media in others. While advertising is a declining art form, and certainly less effective than it used to be, it can still be used as a more effective tool than social media.

You look at the world through a social media lens and therefore you are jaded in favor of social media. But social media is a tool, not a religion. You don’t use your favorite tool in your workshop on every project, you use it when it’s appropriate. The same should be said for social media.

Chris,
Advertising is not the answer to everything, but neither is social media. Those who say advertising doesn’t work any more most, don’t have any experience with it or they simply don’t know how to do it correctly.

No one tool is right for everything. Advertising is right in certain situations, social media in others. While advertising is a declining art form, and certainly less effective than it used to be, it can still be used as a more effective tool than social media.

You look at the world through a social media lens and therefore you are jaded in favor of social media. But social media is a tool, not a religion. You don’t use your favorite tool in your workshop on every project, you use it when it’s appropriate. The same should be said for social media.

The advertising I think that converts the most is for services or products in the airport. Good example is Vodafone in Australia who have advertisements from the Arrival Gates to Immigration that have something like “buy a prepaid phone or top up your account in the arrival area next to exit 3″ This is simple and effective advertising as the first time i came back i went straight there and got a new prepaid account and was able to call business collegues and family within 5 minutes of touching down.

I have flown into airports and been amazed at the number of services and retailers that don’t actually advertise or team up with advertisers such as perfumes, alcohol, magazines for advertising campaigns in the airport.

An example would be a new frangrance or cologne – if I were the duty free shop i would team up with Dior and say can we put something at the bottom of the ad such as ” try the new Dior frangrance at X Duty Free opposite Gate 54″. Too Simple? Maybe? but I am sure it would get some conversions especially with people with long lay overs in international. Or maybe Ford – “Hire the new Fusion Hybrid at Hertz – Use Code FFH to get a 10% discount or 2 days free for 5 days hire”
Simple advertising is often the best – the number of ads that have small font or the logo placed in obscure positions and aren’t ‘localised’ with the site is a wasted opportunity because they use a one standard size fits all advertising.

Everyone wants to talk about ROI, but the fact is, much of what we do in advertising and marketing (and social media) hinges on – oh, that unmeasurable word! – faith. Faith that we can create subtle but real brand recognition by repeated exposure. Faith that a message replayed over and over will eventually hit its mark. Faith that building relationships via social media will lead, in time, to increased sales. Some things can be directly and reliably measured. But some things we just take on faith. Does anyone want to admit it?

Michael Schechter and Danny Brown both touched on elements I can echo. While I used to be more actively involved in marketing and have some opinions pre-social media, I am speaking as a consumer when I say this: I have a hyper-busy schedule. If a company can break through my bubble by providing a service I need, I instantly have a good feeling toward them.

Static? Bah. It has to be something that I could use as a resource to get a positive reaction from me. Brand recognition only goes so far.

On the other hand, I don’t want to be bombarded via social media. A much as I love it, as a “regular person” it’s there to serve me. When I am ready to know more? Sure I will seek that knowledge out. But I honestly don’t want interaction on a personal level until I ask for it. And even then, I am not likely to trust an “official” company over a personal contact … Granted, the point of social media … But that kind of relationship building involves time and is so subtle it would be difficult to measure even if you have corporate buy in.

Companies who can provide plan for a transitional marketing strategy to be there when consumers are ready for the next step are wise.

For me, it’s all about trust. Anyone can say anything about themselves. But if they put their ad money into something that helps me? Sure … I just might connect on the social side.

Why do YOU bother posting up anything on Twitter that does not get you sales directly? How many tweets result in someone booking you as a speaker? How many of your blog posts translated into sales? How do you know?

If I knew which blog post would get someone to stop and think that my company is the perfect candidate for the job, I wouldn’t bother posting all the others. And you wouldn’t post all those other posts and tweets that didn’t result in a contact that converted to a sale for you. Why would we? We’re in business to make money and all those other free-loaders reading our stuff, commenting, perhaps having a chuckle or two or three at our expense, aren’t paying our rent.

But you don’t know and never will because people are funny that way. But I know that each tweet, each blog post, each conversation, each comment builds a picture of who I am and the reader “assembles” my brand for him/herself.*

As superficial as it may seem, welcoming someone to a strange airport and offering a service they need, (like charging an iPhone when you are down to 20% battery because your flight from Dayton to New York was delayed 11 hours) gets Apple “loved” by me more often than the thousand small irritations I have with my iPhone sitting in my office. Seeing a familiar brand in an unfamiliar place makes it seem like home, and taking the time to make me feel at home is taking the time and effort to build a relationship, even if it is just a logo on a charging station.

Ultimately, the decision to buy something is an emotional one, rationalized later with facts. You are probably not the best Web 2.0 speaker out there or that I agree with everything you say and do, but for me, for my conference, for my Webinar, you are the perfect fit because I know you, I’ve read your tweets, you’ve responded to me, we have a relationship. You are visible where I see you and where I am.

PS
Commenting on a blog on Christmas Eve either makes me pathetic loser with no life or a workaholic. The reader will ultimately decide which I am. The one makes me unfit to hire, the other makes me the perfect candidate for the job :-)

* something as simple as my choice of him/herself vs the grammatically correct himself says something about me. It is my logo on the side of a charging station at an airport.

It’s all about consumer awareness. And the targeted the advertorial, the better. It takes 7 times to expose a consumer to a product/idea before it “sinks” and the consumer takes notice. The ongoing advertising builds brand/consumer awareness and eventually equates to sales. It’s one more means to the end (i.e. the sale). For Apple and Best Buy, they are targeting travelers, and those travelers need or desire those tech gadgets (iphones, laptops, etc.).

Some observations:

1. There are a tremendous number of categorical generalizations above (i.e. advertising is broken, doesn’t work, etc…but social media does). Caveat emptor. Nothing, nothing in the world of communication is that black & white.
It’s a subjective jungle…especially when you get to creative.

2. I can share plenty of numerical research where there’s a direct correlation between targeted “traditional” advertising delivering spikes in web visits, Google AdWord hits, awareness, and 20% increases in sales and ROI (the magic word these days). In 2008. One is for a health care company our agency works for in the greater Boston area.

3. That doesn’t mean that there’s not an important role for social media (SM). It’s critical and it will become more so. But the best advertising is integrated (tool belt analogy in post above) and employs numerous channels. The single airport board must be evaluated within a campaign, not as a single piece of communications. Would any of you want your contributions to social media to be judged by a single blog post?

4. Advertising is really all about a conversation with the target audience:
finding them, understanding them inside and out…their hopes, their doubts, their fears. Just like all of you point to in SM

5. Right now if I was targeting a pharmaceutical campaign (the one referenced above) to 60-75 year old adults with diabetes living in the Florida & the sunbelt I wouldn’t use Twitter or Facebook or YouTube. Would you? Unless I wanted to reach opinion leaders, influencers and possibly their chiildren.

6. Finally…here are some brands. I’d ask you (collectively) to decide if advertising has helped or helps them: Nike; Apple; Burger King; Pepsi; Coke; BMW; Volkswagen; Mastercard which buried Visa coming from behind with “Priceless”, American Express, Barack Obama. And many, many more. Have an opposing point of view on what built these companies beside good
products/services/people and great marketing? I’m ready to listen.

7. I’m new to social media and prepared to listen & learn from all of you who know a lot more than me. Since I’ve been listening I’ve seen a lot of questioning of “traditional” advertising in favor of SM. I’m really excited by the what can be done now & in the future. OK, yes, the world is moving in that direction…but SM isn’t the only alternative to “traditional advertising.” Think interactive media, user produced content, sponsorships, guerrilla marketing, etc.

8. I’d very respectfully ask in 2009 that you investigate and think carefully about brands, their value, how they gained authority and what role all types of communication can play in the process including “traditional” advertising and SM. Think Integrated communications. Harmony, not opposition.

8. Happy Holidays & Happy New Year.

Some observations:

1. There are a tremendous number of categorical generalizations above (i.e. advertising is broken, doesn’t work, etc…but social media does). Caveat emptor. Nothing, nothing in the world of communication is that black & white.
It’s a subjective jungle…especially when you get to creative.

2. I can share plenty of numerical research where there’s a direct correlation between targeted “traditional” advertising delivering spikes in web visits, Google AdWord hits, awareness, and 20% increases in sales and ROI (the magic word these days). In 2008. One is for a health care company our agency works for in the greater Boston area.

3. That doesn’t mean that there’s not an important role for social media (SM). It’s critical and it will become more so. But the best advertising is integrated (tool belt analogy in post above) and employs numerous channels. The single airport board must be evaluated within a campaign, not as a single piece of communications. Would any of you want your contributions to social media to be judged by a single blog post?

4. Advertising is really all about a conversation with the target audience:
finding them, understanding them inside and out…their hopes, their doubts, their fears. Just like all of you point to in SM

5. Right now if I was targeting a pharmaceutical campaign (the one referenced above) to 60-75 year old adults with diabetes living in the Florida & the sunbelt I wouldn’t use Twitter or Facebook or YouTube. Would you? Unless I wanted to reach opinion leaders, influencers and possibly their chiildren.

6. Finally…here are some brands. I’d ask you (collectively) to decide if advertising has helped or helps them: Nike; Apple; Burger King; Pepsi; Coke; BMW; Volkswagen; Mastercard which buried Visa coming from behind with “Priceless”, American Express, Barack Obama. And many, many more. Have an opposing point of view on what built these companies beside good
products/services/people and great marketing? I’m ready to listen.

7. I’m new to social media and prepared to listen & learn from all of you who know a lot more than me. Since I’ve been listening I’ve seen a lot of questioning of “traditional” advertising in favor of SM. I’m really excited by the what can be done now & in the future. OK, yes, the world is moving in that direction…but SM isn’t the only alternative to “traditional advertising.” Think interactive media, user produced content, sponsorships, guerrilla marketing, etc.

8. I’d very respectfully ask in 2009 that you investigate and think carefully about brands, their value, how they gained authority and what role all types of communication can play in the process including “traditional” advertising and SM. Think Integrated communications. Harmony, not opposition.

8. Happy Holidays & Happy New Year.

Chris et al

In a high-volume lead generation business, like education, we’ve used or thought about nearly every vehicle to deploy a message – traditional, out-of-home, online, social, etc. In airports, everything has potential: from the security bin (Zappos did it for shoes), to providing puzzles on napkins, to projecting mazes on the floor of the long corridors. As to billboards – yes, we’ve recommended them to reach the business traveler for products that might resonate with the audience, e.g. advanced degrees.

As to cost of the boards – they run from several grand a month to somewhere in the neighborhood of $50k a month if you want to something prominent at LAX. Pricing, like a lot of media, depends on an estimate number of eyeballs (showings or daily equivalent circulation) that see it. Generally, boards aren’t out of line with any other media pricing – display, magazines, search, etc.

Is human contact better? Are recommendations from friends more powerful? Absolutely, and media plans should be built with that as a primary objective – how do we facilitate recommendations? But they are only one part of the mix and anything that can support and round out mose’s list above for high-consideration products is worth investigating. The ideas behind Duncan Watt’s big-seed apply here – how do we provide a basis for conversation among thousands of people simultaneously? We start by announcing our presence; “pardon the interruption but we’re in the business of solving your problem”.

Could we do a $0 media marketing plan (not to say free)? Certainly, and for products where personal recommendations are paramount then this should be the strategy. The challenge we often face is scaling to deliver X number of leads over a short, defined period of time. Advertising in this context produces because the law of large numbers works in our favor, even at small conversion percentages. Could the cost of acquisition be lowered with a social approach – quite possibly, but it isn’t going to be advertising and it will take time.

Marketing (be it advertising, social media, or any other discipline within the broad spectrum of what is available) is, and will always remain, a discipline based on creating value for one’s audience. This is as true in B2B as it is in B2C.

Thus, social media creates value when it brings a community together to do any of a number of things (share knowledge, increase expertise, find others who share a passion, solve problems, support one another, etc.). Just as giving weary travelers a way to power-up their electronics is of much value, too.

Conversely, if there’s a “human interaction” at that power station that wants to sell me things, it will not be of value (that would be an outright nuisance as when I’m traveling, I don’t want to be bothered with salespeople).

As for billboards? Well, it depends on the billboard’s message and audience. Much of it can be noise (just as a lot of social media and broadcast advertising can be noise), so really the benchmark is not the medium, but the value factor. I don’t advocate telling all companies that they need to drop their traditional (or interactive) efforts in favor or social media…I advocate a plan, that is usually integrated…that looks at all the tools available to them to pinpoint how they can add value to their audiences so that they can increase awareness, build relationships and of course increase revenues.

Now, where I think it can be tough, is when marketers of any discipline (be it social media, traditional advertising or direct marketing, etc.) advocates one particular medium over others because that’s their expertise–because in most cases what is really needed is a blend of initiatives/media that is customized to every single brand. We can no sooner say that “every brand should be implementing social media programs!” just as we can no sooner say that “every brand should be implementing traditional advertising efforts!” What I think we need to do is to encourage companies to evaluate all of the options they’re now afforded and assess the plan that has the highest chance of delivering for them, their audiences and those that they can do well (for instance, I know of a lot of companies that should be implementing social media, yet they don’t have the resources or won’t make the commitment to do them well).

A couple years ago, when I first started getting hip to the 2.0 tools, and I pushed my colleagues to learn of them, too, they asked me if I was of the mindset that other marketing tools were now dead. (Actually many still ask me this). I found it funny because I explained to them that I didn’t at all find that to be the case, but I did find this to be important: if we do not know and learn of the many tools and media available to us–and then map those to our clients’ objectives and audiences’ needs–how do we really give clients thoughtful recommendations?

Thanks for asking some good questions. Happy holidays.

Interesting question Chris. Can, meet worms.

Everyone who has replied above has valid points, which is probably part of the issue with quantifying somethings as subjective as persuasion. There are only a handful of objective statements about advertising. It costs money (most of the time), it doesn’t do any harm (most of the time) and it allows talented creative people to be talented and creative. As to direct ROI? In my business we have gained users through a direct response to an advert. The question of whether it was worth it depends on a number of factors. Where your product/brand is in its life cycle, what metrics you are following to define success and what your client/boss thinks.

So, I can say that we have gained users from advertising and generated a direct $ cost for that acquisition. I have very little idea however whether it was the message of the ad alone or combined with other ad’s, Facebook posts, bloke down the pub, Auntie Jean or a news story that made my ad so compelling that it caused an action. That’s why we test and probe a combination of campaigns to see if there’s synergy. It’s a tedious process.

Human contact is a much better tool for gaining loyal customers. I have maintained for years that sales (direct contact) is the one of the most misunderstood parts of business. Everyone knows when they have a good sales guy, few people know how to hire a good salesman and most sales guys are universally hated by non sales guys. A necessary evil if you will.

The problem with direct sales contact is that few people really want to do it and do it well. Most sales guys would love to hide behind the marketing dept and leave them to soften up the leads so they only have to turn up and have the sale land in their lap. People tend to buy things (non-commodities) from people, not from companies. Marketing and advertising can lower many of the potential barriers to a successful sale but not all. Direct contact however costs more, requires more planning and depends upon the skill of the sales guy. Advertising requires research and the ability to write checks. It’s easier.

So there’s the rub and it’s why I will continue to do both. Social networking is absolutely helping us to lower barriers and providing a middle ground of “soft” direct contact. It’s a combination of all of these avenues that is making us grow. A good friend of mine summed it up the best. “If I’m seen to be working, advertising budgets are being sensibly spent, sales are coming in, goals are being met and my boss thinks these things are related. I’m fine.”

Merry Christmas, Mr Cratchett, Phil

This is a great question. I feel that the traditional media marketing should be used as a gateway to the social media marketing. It’s never going to disappear altogether, but it can be used as a tool to get people to the conversation.

Chris,

I think this has to do with predictable outcomes and ease by which the marketing channel scales. If your objective is sales results now, it is often easier to turn to a channel you have used before than to try a new channel. And this “social media channel,” can’t be turned on and off with each campaign (like traditional media), it’s an on-going commitment to listening, responding, acting.

There are compelling arguments that say whether you are using social media or not, your brand is still involved. I think there is a difference between being involved in social media and depending on it as a reliable, predictable sales driver.

I was just thinking about this when I saw a recap of the “San Diego County Credit Union Poinsettia Bowl.” What? Can that name be any longer and any more ridiculous sounding? And why is a Credit Union sponsoring a BCS game? I thought Credit Unions were supposed to be vey fiscally conservative with their MEMBERS money (unlike Boards of large banks who blow billions of bailout money on bonuses and vacations).

As I see it, San Diego County Credit Union’s decision to sponsor this BCS game (at some absurd price I can only pretend to imagine) has lowered their credibility and made me LESS likely to give them any money at all.

Of course I have now just given San Diego County Credit Union, BCS and poinsettias some potential Google traffic by posting their names here, so maybe awareness is the goal after all. And, as some have mentioned in the comments, branding is an emotional, sometimes messy game. But what good is awareness without action or ideas without implementation?

I don’t understand how money invested in any kind of naming can yield any kind of trackable and reliable metrics. Keep in mind I am not claiming all forms of traditional advertising are dead, but I continue to question the value of naming rights and sponsorships of that nature.

Maybe there is an argument to be made for the name sneaking into someone’s subconscious, but again that is so hard to validate. I recall some pundit commenting about how Bill Clinton’s mention of “Staple’s Center” at the 2000 DNC Convention made the entire investment by Staples worthwhile — maybe they were right?

It seems to me that social media offers a much more feasible option for companies looking to connect with their current consumers and/or target demographic. Of course, social media requires listening, not screaming your brand at the top of your lungs to total strangers, so maybe companies anchored in traditional media won’t be able to grasp that?

Matthew Gilbert
doctorious.org
@doctorious

Like someone said before..You become blind to it. If I see an Apple Ad…I’m no more or less inclined to buy an Apple computer…(I really want a MacBook but I’m not sure because I’m a Windows head)

But if an Apple salesman came to my door or if I could spend a couple minutes talking to someone who knew a lot about Apple…He’d probably impart enough knowledge upon me to tip me over the edge and buy a Mac.

@Matthew Gilbert so, should I give up the dream of getting the Rivershark TourneyCentral DogWalkBlog Plain Joe Coffee SUPER BOWL L presented by Doctorious.org? Damn, I was so close to raising the $100million in sponsorships and it had such a catchy ring to it ;-) @gerardmclean

@Meji – 365HUSTLE.COM Hmmm.. blind to it? But if you see an ad for Apple in an airport, are you really blind to the ad or are you secretly seething because you remember the crappy times you’ve had with your PC this whole time and are reminded that there is a better way? Which crappy experience with your PC in an airport will finally be your tipping point to buy a MacBook? And, the next time you see an Apple ad in an airport, will you think of this blog and check in with Chris to see what he has posted or tweeted lately.. and silently swear as your PC works really hard to find that airport WiFi network, knowing that your new Macbook could have found it far easier? Hmmm.. I think you will….

When I see an Apple ad in an airport, it reminds me to check the Apple Store locations on my iPhone, just in case I get to the hotel and I may have forgotten my power cord… or the PC-only projector needs an “adaptor” I didn’t bring.

Where does it end? “This mens room urinal is sponsored by…” This is noise. For many it is annoying. For many it isn’t even our first introduction to a given product or brand; believe it or not, I’ve heard of Apple or Coke before. The NY subways are apparently experimenting with brightly lit billboards in their tunnels – I cant wait to experience a light show offering me a product while traveling at 50mph in a crowded train.
What strikes me is that so much of this advertising seems stale. The creative behind it seems so often lame. It is akin to listening to local radio advertisements with their thin plots, the smiling voice of the narrators that never seem to connote honest emotion, the feeble attempt at humor, the cacophony of multiple voices screaming 1-800 numbers repeatedly.
Placement, repetition and eyeballs may be the tactics – audience recall is the holy grail. But at what cost – the loss of any time to reflect, appreciate or contemplate. Advertising has become the new entertainment – visual eyewash to keep us over stimulated and engaged with things (products, any product) that may pass for a moment of diversion.
And yes, it seems as if we have enough of this now and can look forward to much more in the future.

@gerardmclean Well I have $27.43 and three Chuck E. Cheese tokens in my pocket right now — how close will that get you to achieving your inspirational advertising vision? Will it at least cover “doctorious.org” (my favorite part, of course). =)

Chris,

I do agree that for most people traditional forms of advertising don’t work anymore, but for the average consumer, I think that seeing that new cool phone on a billboard does make them think of your product. If they think about your product enough they might just buy it. That being said, could the money be better spent in another way? Yes, totally. Social media is the wave of the future but some companies just don’t get it or don’t want to get it.

-Seth