Category Archives: Consulting

How’s That Going?

Sometimes when I meet people and they describe their work lives to me, I’ll listen as they tell me what they’re doing and then follow up with a simple question: “how’s that going for you?” You’ve probably done something similar, and I bet that you rarely get “I don’t know” for an answer. I certainly don’t, and it concerns me when I do since how can you not have some feeling about so important a topic that occupies much of your waking day? 

What made me think of that was a report put out by the folks at Rundown. It took a look at how companies feel about their content creation process and the subsequent content marketing. It’s instructive to any business regardless if you’re doing content marketing or not. You can look at a summary of the report here.

Almost 80% of the surveyed content marketers agree or strongly agree that their team “makes awesome content that our audience loves.” That’s great, except for that pesky follow-up question – “how is it going?” You see, 52% of these same people disagreed that ” My team has a clear understanding of what works and why.” 55% disagreed that they knew how much each type of content costs to produce, and an astonishing 82% disagreed that they have a good understanding of the ROI on the content creation and marketing investment.

I’m not going to pontificate about in which activities a business should or should not engage.  I will say, however, that no matter which ones they are, it’s imperative that there is a handle on costs as well as some measure of ROI.  I am cringing as I think about answering any of the people for whom I worked with “I don’t know” when asked about what something cost or how it was impacting our goals (revenue, engagement, whatever).  Resources are precious.  So are measurable, actionable data about the results of activities we undertake using those resources.  Saying you make “awesome content” (or anything else) doesn’t resonate with me unless part of “awesome” is moving the business forward.  You?

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Business Suicide

A clear indication of when it might be time to rethink how you’re running your business is when your own interests overtake those of your customers. I’m pretty sure that while that sort of prioritization makes for short-term gains it’s a losing strategy in the long term. What’s prompted that is a piece I read this morning about programmatic media buying. You can read the piece here and it’s pretty sobering. That said, I suspect many executives could tell similar stories in their fields. 

The piece starts this way:

Programmatic is supposed to bring efficiency to ad buying. But in reality, it’s becoming murky and less reliable for many brands. Most of the time, brands end up paying their agency double and even triple when they collaborate on programmatic.

In other words, what is supposed to be a winning solution for both client and agency turns out to be anything but. I’m very sure that there will be collateral damage on publishers as well. This is what happens when business interests are misaligned. We see this sort of thing all the time. What caused the home mortgage crisis? Lenders putting their profits ahead of the customers to whom they issued loans they knew would be in jeopardy from day one. Why do some drug companies levy outrageous price increases? Shareholder interests before patients’.

One thing of which I remind clients is that as a consultant I have no interests other than theirs. Maybe that’s a lie of sorts since in truth my interest is in making their current customers as happy as possible while expanding that customer base. I think that’s the only way forward to sustained profitability, and it only happens when the business’ interests are perfectly aligned with the customer’s. Anything else is akin to committing business suicide. Do you agree?

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Blocking My Goodwill

One of the things I’ve done consistently throughout my life is to subscribe to the NY Times. I can remember a representative of the paper coming to my elementary school class to show us how to fold it for easy reading and to explain how newspapers are written and printed. 50 years later, I’m still a reader.

The New York Times uses an unusually large hea...

(Photo credit: Wikipedia)

You might have read that the NY Times is following the lead of several other publications and shutting down access to those people who use ad blockers. Instead, readers who visit the Times site will see, as Digiday reported, the following:

“The best things in life aren’t free,” the pop-up reads.”You currently have an ad blocker installed. Advertising helps us fund our journalism,” then points readers to two options: purchasing a subscription option, which doesn’t strip the site of ads, or to whitelist the Times, which disables the ad blocker.

It’s the value exchange – we give you content, you give us attention. I’ve written about this paradigm before and I came to the conclusion that there really isn’t any one correct answer for publishers when it comes to ad blockers. Cutting off access does little for most publishers since not many publishers can claim to provide truly unique and valuable content and readers can go elsewhere. The Times, however, can make that claim. The issue is that with upwards of 40% of US readers using some sort of ad blocking, curtailing access also means fewer page views that can be sold, lower time one site, higher bounce rates, etc. Still, given their success in digital, I’ll give them a “wait and see” on this. Except for one thing: They’re cutting off access for subscribers as well.  As a spokesperson put it:

Ad blockers do not serve the long-term interest of consumers. The creation of quality news content is expensive and digital advertising is one way that The New York Times and other high-quality news providers fund news gathering operations.

Want to know what really doesn’t serve consumers’ long-term interests?  Greed. My bill for home delivery, which includes online access, is around $150 a month.  I daresay that the Times has gotten full value out of me, just as I’ve gotten great value out of their content. I access the Times site as a logged in user, so it really shouldn’t be too difficult to identify me as a subscriber and not to hassle me about ad blocking.  Hopefully, they will.

To the extent it can, any business needs to treat each customer as an individual.  There are very few rules that can apply to prospects and customers equally, and not every customer is the same (the pesky lifetime value computation we need to do!). Asking a customer to pay for access and then asking that same customer to endure a barrage of ads as a condition for continued access seems like nothing more than greed and insensitivity.  What do you think?

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Filed under Consulting, digital media, Huh?