Category Archives: Consulting

Quit Yelling At The Kids

Any of us who are parents have felt the need to yell at the kids.  Maybe it’s during the terrible twos when every request is met with “no” or maybe it’s when they want to know “why” to any statement that passes your lips.  It’s hard not to use the words you swore you’d never utter: “because I said so.”  Hopefully, you resist the urge to yell as well, since the tone and volume become way more important than the actual words.

There is a business lesson in there, one that’s supported by some research from the folks at Lithium Technologies.  They asked the Harris Poll people to look into how effective ads were in social media news feeds.  As this report summarized it, the research:

…found that 74 percent of millennials (ages 20 through 39) and Gen-Z respondents (16 through 19) object to being targeted by brands on their social media feeds. Even more ominous for brands: 56 percent of the nearly 2,500 respondents to the study said they have reduced social media use or eliminated it altogether due to ads in their news feeds.

In other words, not only are you turning off your target to your stream by force-feeding them messages but you might just be enticing them to be less visible to you as they migrate to other, less cluttered environments.  We all need to remind ourselves that social media is about connecting with friends.  Shouting at them, especially if that about which you’re shouting is not about them but about your brand, is misguided.  It’s the person you invite into your home for a cocktail party that becomes the unwanted center of attention, singing loudly, dancing around, and otherwise embarrassing themselves.  Party over.

The report has a good reminder: we build trust by talking with, not at, our customers.  So quit yelling at the kids, won’t you?

 

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Filed under Consulting, digital media

The End Is Nigh?

Walk around any big city and inevitably you’ll come across some person wearing or carrying a sign proclaiming that the end is nigh.  They’re warning about an impending apocalypse.  While they’re generally seen as a little odd (a polite way of saying nuts), I suppose at some point they’re going to be right.  Hopefully, that time isn’t close.

With that preface, and with the recognition that my timing might be off, I think we’re seeing signs that the end is nigh for the TV industry in which I grew up as a businessperson.  If you’ve been paying any attention to the media landscape over the last decade, you’ve seen some changes in what I’ll call Big TV (cable and broadcast).  To a certain extent, TV has adapted and their basic revenue model hasn’t changed a whole lot.  Sure, broadcast TV has done a good job of mirroring the cable model of dual revenue streams by gaining carriage fees, but the ad model – dollars for eyeballs – is pretty much the same as when I sold, even though the demographics are a bit more precise as the industry adopts additional data sources.

So why is the end nigh?  Let me offer a quote from YouTube’s CEO as presented at their “newfront” and quoted by Cynopsis:

 

To make her case, CEO Susan Wojcicki rattled off a startling statistic: “YouTube now reaches more 18–49-year-olds than any network ­ broadcast or cable,” she said. “In fact, we reach more 18–49-year-olds during primetime than the top 10 TV shows combined.” Her assertion is backed up by a Nielsen study of US viewers that Google commissioned. Wojcicki also confirmed news that broke earlier in the week: Between 2016 and 2017, Magna Global,Interpublic’s ad-buying unit, has committed to spending at least $250 million on YouTube instead of TV.

It’s a truism in media that dollars follow eyeballs (eventually).  Other than live sports and breaking news, those eyeballs have been departing the BigTV guys for a while, at least in the traditional form via the traditional channels (we program, you watch when we offer a show). While the digital dollars have been increasing (and will pass TV spending this year), very few marketers admit to cutting TV for digital.  Magna has because according to them, 18- to 49-year-olds watch an average 26 hours of linear TV per week, down from 32 hours in 2009.  Dollars follow eyeballs. As Adweek reported:

Magna Global’s $250 million investment in YouTube advertising will come straight from its TV budget. The $250 million investment is four to five times Magna Global’s typical YouTube budget. As a result, the firm will spend less on traditional marketing overall this year as TV ratings dip.

So you tell me – is the end really nigh for Big TV or am I just another nut carrying a sign around?

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Filed under Consulting, digital media

Getting To Know You

One of the most basic things we should do in business is to identify the group of people that is most likely to buy our product or service.  That’s not a profound insight, I know, but because it is a “duh” moment, I wonder why more business people don’t really do it?  How you define your audience is something that influences everything from marketing to product.  Understanding how those customers and potential customers interact with your business is incredibly basic and yet it often goes undone.

One reason I hear for that, particularly among earlier stage businesses, is that it’s expensive.  Putting aside what I’m about to tell you, it’s critical no matter the cost.  While we may have self-driving cars, there are no self-operating businesses of which I’m aware.  However, the cost isn’t really an issue.  There is a lot of free infomration available from the government. Maybe you thought all the Census Bureau did was count us all once a decade – check out their free stuff and I’ll bet you’re surprised.  Do you have analytics on your website?  Google Analytics is free, at least until you become a high-traffic site (and you won’t mind paying at that point).  Finally, if you’re a physical location, you can ask people to fill out surveys about basic demography.  Heck, you can have an employee jot down who they see.  Online questionnaires are easy to implement and also are free.

My point is this.  I rail from time to time in this space about the overwhelming amounts of data we confront these days.  It’s often hard to make sense of it and we often get conflicting information.  That, however, is a far better outcome than having NO data.  Getting to know our customers and their behavior, likes, media habits, who they are, where they are, and why they buy from us is an important part of business.  It’s not optional!

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Filed under Consulting, Helpful Hints