Tag Archives: advertising

Getting Social

You might think that after a decade or more of social media as a legitimate channel through which marketers can engage consumers we’d be doing a decent job of it. Unfortunately, I don’t think that’s true for the bulk of the marketing world. In the interest of improving both results and the quality of the messages with which we’re all deluged, here are a few things I’ve found to be helpful when engaging in social media marketing.

First, research has shown that the vast majority of brands today invest most of their paid social media budgets into brand awareness marketing. I get that the sales cycle has to begin with lead generation and that begins with awareness, but if you’re spending all of your budgets on the news feed and not enough on conversion, retention, and service than you’re doomed to massive churn rates and ultimate failure.

Next, ask yourself how engaging you really are. The news feed, whether Facebook, Instagram, or elsewhere, is a place where consumers go to interact with their friends and to be entertained. It’s also becoming a primary news channel for many. Nobody is there to interact with you. Let me repeat that. Nobody is there to be sold to; they are there to be entertained. Are you doing that or are you the guy at the cocktail party who keeps asking all the guests if they have car insurance because that’s what he sells?

Whatever messages you’re sending out, how are you deciding about targeting? The holy grail of marketing is the right message to the right person at exactly the right time. It’s extremely tailored. If you’re buying big, untargeted audiences (Men, Women 18-34, People living in Maryland), you’re using a wrench as a hammer. It’s a misuse of a tool.

Finally, are you being you? Has your brand created a distinctive personality or is it all corporate ad speak? People don’t want to engage with robots so don’t sound like one. Be real and listen a lot more than you speak. Let your customers guide your marketing. Don’t respond to a question just with a “that’s on the FAQ page of our website.” Use it as the basis for your next blog post which then goes through the social channels.

I’m a fan of social media marketing even as I recognize that it’s full of landmines. You don’t want to be the company that “goes viral” for the wrong reasons (DiGiorno, Red Lobster, and many others) due to some social media faux pas. You want to be unique, interesting, relevant, inspiring, authentic, and entertaining while staying focused on your target audience and your own goals. Doable?

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Filed under Consulting, digital media, Helpful Hints

Staying Alinged

One thing that bad golfers do (and I’m speaking from personal experience here) is to misalign themselves. They might point the clubface at their target but they fail to get their hips, shoulders, and knees properly aligned. When they go to hit the shot, inevitably the ball goes someplace other than where the golfer desires.
I thought of that this morning as I read the results of a study on marketing compensation. Conducted by MediaPost, the study found that:

Agencies and their clients are far apart in terms of what they deem to be the most fair method of compensation, according to findings of a survey of advertiser and agency execs conducted recently by Advertiser Perceptions for MediaPost. While labor-based fees are the No. 1 method preferred by agencies (45%), incentive methods were the top choice among marketers (40%).

You might not be a marketing agency or a marketer, but there is something to be taken from that for whatever business you’re in. Think of a car’s four wheels. When they’re properly aligned, the car is easy to hold on the course you set. If one wheel is out of alignment, the car pulls left or right and you’re constantly having to fight to keep it heading where you want.

Your business is no different. Your goals and your customers’ goals have to be in alignment. So too do yours and your team’s. Being paid fairly is a critical part of the employer/employee relationship, and no one is going to do their best work if they feel like they’ve been treated unfairly. I’ve known agencies who’ve resigned clients because they felt that they were losing money servicing the account. I actually had a client who hired me to complete a project over a few weeks. When I presented the completed work in a little over a week, they asked to reduce what I was being paid since “it didn’t take as long as we thought.” In that case, it was my fault for not being sure that their expectations (how long it would take and the value of that time) were in alignment with how I did the work and the value of the project regardless of the time spent. Sure, I could have sat on the completed work until it was due, but that has no benefit to my client and only helps me justify what they’re paying.

All the wheels need to be aligned. The club face and your body need to be aligned. The goals and expectations of everyone in your organization need to be aligned, and that alignment must extend to your customers as well. Hard to do sometimes, but always worth it, right?

 

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Tolls

As you might have guessed from the name of my company (Keith Ritter Media), I’ve spent a great deal of time in the media business, both as a marketer and as a publisher. The business model used to be pretty simple. Create something about which people care, make them aware that you’re offering it, get them to read, listen, or watch it, and aggregate those people into a saleable audience. You hired salespeople to meet with the representatives of your real customer – the advertiser. Usually, these representatives were media buyers from an ad agency. You with me so far?

In TV, we’d offer a unit of time at a “gross” price and asked the agency to remit a “net” price, which was usually the gross minus 15%. That commission was the toll we paid to get the revenue. Obviously, how much of that the agency kept was between them and their client but it wasn’t really our concern. We did our budgeting on the expected net revenues we’d get which was pretty much a straight line derivative of the gross monies sold. Other media had similar models but in every case, the dollars received by the publisher were directly and clearly tied to the size and desirability (to marketers) of their audience.

That statement in no longer true for digital publishing and the fact that it isn’t has serious negative implications for other media as they shift to a more programmatic sales model. I have no idea how digital publishers are able to do financial plans since they can’t project revenue from audience size. That’s because they’ve allowed themselves to generate billions of dollars in ad revenue while only capturing somewhere around a third of what is spent. The 15% that used to be paid in tolls is now more like 67% although some estimates are even higher. More importantly, it’s usually impossible to predict the net revenues received from the gross revenues sold. Digital audiences are growing while publisher revenue is declining.

Where is the money going? A sponsor pays $1 for an ad impression. The agency still takes their commission, but added to the toll-takers are trading desks, DSP providers, data providers, supply side platforms, ad serving platforms, verification services (viewability, etc.) and who knows who else. In some cases, it’s the agency double-dipping, but most of the time these are third parties. Most of these ad services have no interest in either the publisher’s or the marketing client’s success. They aren’t about a quality ad environment. They facilitate a transaction. In some cases, a platform that connects both buyers and sellers charges each side a separate fee without disclosing that they’re doing so. In short, publishers, agencies, and marketers have created a system that works for no one but the VC’s that fund these ad tech companies. What happens when programmatic spreads to other media such as TV?

Publishers have many other challenges. Facebook, for example, makes more money off of some publishers’ content than do the publishers themselves without paying the publishers a dime. But the real threat to a healthy media environment is the toll-takers. When you create great content and grow your audiences, you should be the entity that benefits and not some opaque service provider. More eyeballs used to mean more money to the bottom line. Can we make that equation true again?

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Filed under digital media, Huh?

Is There Anybody Out There?

Over the years, I’ve been privy to a lot of data. My own business analytics (my website, blog posts, social presences, etc.), as well as those of my clients, kick off a lot of information. Combine that with the ongoing streams of data from the various marketing campaigns – both search Engine ads and social media ads – I’ve administered over the years and I’ve seen a lot of information about how readers are captured and interact.

Except I don’t believe much of it anymore. Let me explain why and what it means to you.

A few weeks ago, there was a report that Facebook was breaking up an “extensive fake account scam” targeting publisher pages with false “likes.” The idea was to obtain more “friends” for the scammers they could later spam. USA Today was the biggest page hit, losing nearly 6 million “likes.“ because they were fake accounts. Facebook also came under fire for giving publishers and advertisers faulty metrics to evaluate audience reach. Even in the last day, Facebook found an error in how its video carousel ads were reporting and is having to give back cash to advertisers. I don’t think it’s news to anyone that a huge percentage of Twitter accounts are bots, and impressions generated against those bots are a complete waste.

If you read web analytics, you’ve probably encountered “referrer spam.” This has the effect of goosing your visitor numbers up while providing no value. It skyrockets bounce rates and kills conversion rates among other things, but the worst part of it is the added time it takes to address, either through filtering or other means.

Programmatic advertising, which is now nearly all of display and other ads on the web, is rife with fraud. The industry is struggling to verify if ads are seen by humans or even if they’re visible at all. Middleman after middleman “clips the ticket” as money moves from advertiser to publisher, and with over 2/3 of those dollars going to just two entities (Google and Facebook), it’s slim pickings in the publishing world. That means the pressure is on the generate big numbers and bigger results. Of course, if you can’t believe the numbers, how can you evaluate anything anymore?

Here’s how. I know I’m old school and what I’m about to say isn’t as efficient as a trading desk’s programmatic solution, but it actually works. First, take the time to look at the only results that matter. It may be revenue, it may be downloads or app installs, it may be the phone ringing, it may be physical store traffic. I used to worry about conversion rates but since we don’t really know who’s a human out there, the conversion itself is what’s key. Make friends with the sales reps from key publications. Have face to face meetings. You don’t want your sales rep to be a bot either. Pay premiums for premium content and premium results. Programmatic is a race to the bottom, even after you cut through the fraud and waste.

We need to rely on people and only upon the data that can’t be subverted or corrupted. Yes, there are people out there. Let’s go find them.

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Filed under Consulting, digital media

Learn To Shut Up

I don’t suppose it will be a great shock to any of you that there is new research out that shows marketers can be their own worst enemies. The study comes from Bridge Ratings and is entitled The Facebook Fatigue Dilemma. There is quite a bit in the study but the section I found of relevance to us today concerns why users unfriend or unlike a brand. Not surprisingly, it’s because they are being inundated with marketing messages, and while they can’t really control which ads they’re seeing (more about that in a second), they can control what pops up in their news feed by telling the brand to go away via unfriending.download

What they study shows, as reported by eMarketer, is “44% of respondents “unliked” a brand on the social media platform when the company posted too frequently. Likewise, 43% of those polled said they “unliked” brands because their Facebook walls became too crowded with marketing posts, forcing them to cut down on the number of brands that they follow.”

As marketers, we forget sometimes that our brilliant messages are not the only messages the consumer is seeing. While what we have to say is important both to us and the consumer (hopefully), we are just one of a thousand messages the consumer is seeing that day. We need to learn to shut up unless and until we have fresh content that’s relevant to the consumer.

Of course, we can also do a little educating. Going off on a tangent here, I’m convinced, based on my discussions with many Facebook users, that most people have no clue how to tune their Facebook feeds to serve them. I’ve yet to see any marketer run a campaign within Facebook helping users to use the platform (and to presumably keep your incredibly helpful posts front and center). Do you use the little drop-down tab in each and every news feed post to tune the stream? How about using lists to segment various things? Do you actively report your feelings about various ads to the Facebook algorithm to help make what you see more relevant?

Media isn’t a megaphone. Marketing isn’t a monologue. We need to learn to shut up until we really have something to say, don’t we?

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Digging Out Of A Hole

Let’s begin the new year with some (more) sobering news. People think marketers suck and don’t trust us. Actually, that’s not a recent development according to the Gallup folks who conduct an annual poll about various professions and how they’re perceived. Since Gallup has been conducting the survey (as far back as at least 2001), “advertising practitioners” have always appeared near the bottom of the professional rankings:

When it comes to rating the honesty and ethical standards of people in various professions, American adults rate medical professionals highly. But advertising practitioners? That’s a different story. In fact, just 11% of adults rate advertising professionals highly for their honesty and ethics.

That’s from the Marketing Charts summary of the poll. You can see the chart listing the various professions off to the side. Is anyone shocked by these results? Let’s think for a minute about many of the prominent ad stories of the past few years. They’re a litany of theft and fraud but those don’t really affect consumers. The big consumer ad story is probably the rise of ad blocking which is a response to irresponsible behavior on much of the advertising/publishing ecosystem.

That’s just the online world. Offline, one needn’t look very far to find examples of “free” offers that require one to submit a credit card, businesses suing their customers for accurate but negative comments on social media, and just about any political ad this last year. Each of these things further reinforces the negative perception that this study finds.

It’s a new year, and every new year brings the possibility of fresh starts. Maybe this is a good time for any of us who make a living within the marketing community to start digging out of this perception hole? We can do so by reminding ourselves that our families and friends are the consumers we’re pitching. Would you try to run a scam on them? Would they find the ad you’re running offensive? For those of you not engaged in the ad business, you’d do well to ask yourself the same types of questions. My guess is that we’re going to hear a lot about ethics this year. Let’s try to make our profession a better example of the right kind of ethical behavior. You with me?

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Filed under Consulting, Helpful Hints, Huh?

Fighting About Data

I think everyone knows that a lot of data is collected as we conduct our daily digital activities. Google and the other search engines know what we’re looking for, Amazon and other commerce sites know what we’re shopping for, Facebook knows what we like, LinkedIn knows who we know, etc., etc., etc. These data footprints are collected and in many cases sold to marketers and their agents to allow them to serve ads to you. If any of that comes as a shock to you, I’m not sure where you’ve been for the last decade or more.

What you might not have thought about, however, is that the ads themselves collect data. How many times has someone seen it? What kind of person (that pesky data that the aforementioned guys have) has responded to an ad, and how well do the ads translate to sales (lovingly called the conversion rate as if someone is changing religions…). As it turns out, there is a bit of a controversy about who actually owns that data: the advertiser or the agency. The marketers believe that they are the rightful owners while the agency folks believe just as strongly that they are. Neither side feels that the publishers who serve the ads and, therefore make data collection possible, have much of a claim to it. Of course, even publishers came out ahead of one other group as the rightful owners in the survey: consumers.

As you can see in the chart, only 10% of advertisers and 15% of agency respondents believed that consumers had a claim to their own information. That’s tragic. Why? Because it represents a mindset that is ultimately self-defeating. It can lead to legal problems at worst and consumers opting out (if they can figure out how) at best. What have the advertiser or the agency done to give the consumer value for the data? Nothing, in my mind. One could argue that the ads they serve make possible the content the consumer enjoys, but those very ads make that enjoyment nearly impossible given the state of ad-serving today, particular in mobile.

Unless and until we on the marketing side see the consumer as at least an equal partner in our business and not as a bunch of rubes or just as “data”, the problems with ad blocking, anti-spam rules, and other protective measures aren’t going to go away. What will go away are the people represented by the very data over which the agencies and marketers are fighting. You agree?

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