Tag Archives: Marketing and Advertising

The End Of The World Or Just A New Start?

You’d think that the world was coming to an end.

That was my thought as I read the response in the marketing and advertising trades over the last week since Facebook pulled the rug out from under publishers by making (yet another) algorithm change. What Facebook announced was that they are going to be prioritizing content from friends and family over public content posted by brands and publishers. Currently, they look at engagement metrics such as the number of likes and comments a post receives when determining where that post will appear in users’ News Feeds. That sparked publishers to create various forms of click-bait. This change will force publishers to create content that fosters engagement – comments, sharing, etc. – between friends to get the content shown more often.

Why is Facebook doing this? I’m assuming it’s based on two factors. The first is that by making it harder for brands to have their content displayed those brands will ramp up their ad spend on Facebook. That’s Facebook’s business, folks, and it’s hard to criticize them for that. In fact, I’d once again criticize those publishers who relied on Facebook for traffic rather than creating reasons for people to come to their content directly. Instead of spending resources trying to figure out how to game Facebook’s algorithm, maybe spending those resources on targeting specific audiences and bringing them to their content. Building a loyal audience of your own rather than being a remora of sorts on the back of another platform is smart even if it’s not nearly as easy.  If you’re focused on creating engaging content that sparks conversations, I think you’ll be just fine, both on and off Facebook and other social platforms. Facebook must satisfy their users so they keep coming back and stay on the platform (younger users are abandoning it in droves). They own the audience – you don’t.

The second reason I assume Facebook is doing this is to mitigate the effect of “fake news.” Generally speaking, news outlets and especially dubious news outlets will show up less often in the News Feed. I don’t know if the algorithm has been tweaked to evaluate the authenticity of some post but I’m sure that unless something is interesting enough for users to share and comment on it will be downgraded.

Has this been a bit of a bait and switch by Facebook? After all, it has spent years cultivating publishers to build their brands on the platform and now, suddenly, it’s saying pay me or you’re on your own. No, it’s not. Any marketer should have been wise enough to know that the Facebook audiences are generally fly-bys – they don’t engage very much and they certainly aren’t very loyal based on what I’ve seen in the analytics I’ve looked at. Paid audiences are different, and while the short-term pain will be there, over the long-term learning to build better engagement is a positive. I’m sure we’ll see all sorts of brand posts begging people to comment and share in yet another attempt to game the algorithm. That’s too bad.

I’m also not sure how this will affect Facebook’s business. Think of travel agents. The number of them has declined precipitously (down about two-thirds) in the last 20 years as online travel sites grew and people could book themselves. Maybe as publishers get back to doing what they were doing before Facebook – creating loyal engaged audiences on their own platforms – they’ll figure out that a paid Facebook audience need to be icing and not cake. Maybe this isn’t the end of the world but just a fresh start?

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Filed under Consulting, digital media

Looking For The Truffles

This Foodie Friday I’m going to run the risk that I’m going to burst a balloon. If you received some truffle oil as a holiday gift, the odds are overwhelming that there isn’t any truffle in your truffle oil. That’s right: much like true extra virgin olive oil, which is generally often neither “virgin” nor “olive oil,” truffle oil is generally some sort of oil infused with something called 2,4-dithiapentane. Sounds yummy, no? As Tony Bourdain said, truffle oil is “not even food! About as edible as Astroglide and made out of the same material.”

Norcia black truffles.

Norcia black truffles. (Photo credit: Wikipedia)

I should not really be the real bearer of bad news here. As far back as 2003, publications were reporting on this and the NY Times did a piece last September on it that was widely read in foodie circles. You might think I’m going to use this as the jumping off point for another rant about deceptive advertising, and as appealing a thought as that is, I’m heading in another direction. Much like the “Where’s The Beef” question, seeing truffle oil on a grocery shelf (heck, even Walmart sells EVOO with “truffle aroma”) makes me wonder where exactly the truffles are. Real truffles in oil don’t last long, you know, so they’re probably not in things that sit on a shelf.

Come to think of it, vanilla extract has the same issue. Much of what you see in the stores isn’t real vanilla and there’s no vanilla in most vanilla things, but vanillin, a chemical compound. Unlike truffles, you probably can buy the real thing at your local store but it’s not 98 cents a bottle, believe me.

What does this have to do with your business, other than making you feel as you did when you found out there isn’t a Santa Claus or Easter Bunny? More than you’d think, actually. When you put up a sign or create a website that announces you as a service provider of some sort, people have an expectation that you can, in fact, provide said service. When you advertise a product, customers expect that the product will do what you say it will. They don’t want to have to look for the truffles nor do they expect that what they’ll find will be fake or something that mimics the real thing. If you’re selling your expertise, have some, even if it’s narrow. I’m surprised sometimes when I speak with people who claim to know something about a piece of this crazy business world how little they actually do know. They might have read a book and can fake their competence, but there really isn’t a truffle there.

A vanilla-flavored extract isn’t the same as vanilla extract. Truffle flavored oil assuredly has no truffles. Make sure there is validity in whatever you’re claiming to be or much like olive oil brands and truffle oil distributors are being sued (there were “four class-action lawsuits filed in New York and California accusing Trader Joe’s, Urbani Truffles, Sabatino and Monini of fraud of ‘false, misleading, and deceptive misbranding’ of its truffle oil products'” you’re heading for big trouble.

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Filed under Consulting, food, Huh?

What Has Happened?

Maybe it’s because the start of the year is also a time of reflection, but I continue to be appalled at the state of the online advertising business. It’s not so much about the fact that 2 players – Facebook and Google – gobble up the majority of money spent. In fact, in terms of ad revenue, Facebook by itself is twice as big as the newspaper business, according to eMarketer, and will be bigger than the entire print business shortly. Google is twice as big as Facebook. There’s a third player – Amazon – on the way to suck up a huge share of the ad pot as well.

While that isn’t the problem, it does mean that the rest of the industry is fighting over relative crumbs. When you’re desperate, you might do things that you know are wrong or foolish and that’s where I think we are. In fact, I think we’ve gone way over the line from foolish to criminal.

Some examples. Yesterday while I was reading an article via the web browser on my phone, up popped the screen you see on the right. Those of you who have an Android phone know that what you see looks very much like the Google Play store and it seems as if there is a critical app update I need to make. It is an ad, of course, trying to get me to install what I assume is malware. Had I not noticed that it was in a web browser and not in the native Play Store, I just might have clicked.

This is why the online ad business is doomed or at least the part that’s outside of the big 3. On the consumer side, people are forced to use ad blockers to prevent malware from infecting their devices as well as interrupting their tasks with annoying popups. On the business side, publishers keep pushing ads knowing that some percentage of them are scams or worse yet unable to do anything since in many cases they’re not the ones selling the ads. They’ve offloaded that to third parties and 74.5% of US digital display ad dollars transacted programmatically will go to private marketplaces and programmatic direct setups.

Speaking of those third parties, they might just be the worst thieves in the bunch. They claim to be there to help publishers increase revenues or marketers to buy efficiently yet they inject numerous fees, both known and hidden, into the process, siphoning off at significant (upwards of 25%) amount of the available money in the transaction. Those hidden fees, by the way, might just violate any number of local and federal laws.

So what has happened to the ad business in which I grew up? What has happened to agencies being honest brokers and nearly full transparency on all sides? Where is someone in the ad chain (looking at you, ad networks) saying “no” to scams, malware, and the other crap that serve no purpose other than to encourage adblocking or to harm someone? Anyone?

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Losing The Lottery

We’re all bugged. If you carry a smartphone, you may rest assured that it’s possible to identify that device as it moves through the world and interacts with various services. How difficult do you think it is, once someone has a device ID, to associate it with a phone number‘s owner?

I think none of that is a surprise to you, nor is it to me. I try to keep the list of organizations tracking me to a minimum and to a list of companies I trust. Unfortunately, that takes more effort that most people are willing to exert but it can affect you in more ways that you might know.

I uninstalled a lottery app this morning. It was doing a number of things that caused me concern. First, it alone was responsible for 65% of the data traffic from my phone when the phone was idle. The app was idle too, or so I thought. In fact, it was busy sending my phone number, my device ID, and several other very personal pieces of data (Facebook and Twitter ID’s among them) to…someplace. Who knows what happened to the data from there.

I installed this app a few months ago when the Powerball prize pool was ridiculously large. It seemed like a convenient way to input my tickets and get notified if I won anything. What I won, apparently, was the ability to be tracked as an individual and have my battery drained unnecessarily. Buh bye.

What’s the point today? I guess it’s a message for you as you’re on either side of the desk. As a marketer, we can’t violate our customers’ trust by using the permissions they give us to collect usage data and selling or sharing that data to companies with which the customer has no relationship. More than 70 percent of smartphone apps are reporting personal data to third-party tracking companies like Google Analytics, the Facebook Graph API or Crashlytics. Generally, those companies are there to improve the user experience. The problem is that in many cases, app developers that that permission as carte blanche to send the data anywhere. I’ve seen how that data can be used for profiling and targeting and believe me, it’s frightening.

As consumers, we need to pay more attention to privacy and where our data goes. It’s not just to keep your battery from running down. Given the role that our smart devices play in our daily lives, it’s quite possible that a bad actor could know way more about you than you’d care to share. I don’t just mean by monitoring your texts or any unencrypted data you send. It’s also tracking your movements. As a positive, location-based services can help us (you get an alert for a sale at a store you frequent as you pass within a quarter mile) but the possibility of an unscrupulous third party misusing that data is exceptionally high. Check your app permissions. Why would a game need to know your location or have access to your camera, for example? Turn off the permissions that don’t make sense.

I’ll be looking up the results of the money I risked on Powerball some other way since trying to make my life a little easier made it a lot more risky in other ways. It was a good reminder to let my devices work for me and not for people who want to spy on me. You with me?

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Filed under Reality checks, Huh?, digital media

Lost In The Flood

Today is Cyber Monday, which is, of course, another “Hallmark Holiday” – something made up by marketers to sell stuff. It’s the first Monday after Thanksgiving which, as we all know, exists only to let us know that Black Friday is the next day. That might even be a bit untrue since Black Friday now seems to start after lunch on Thursday.

In any event, there are lots of deals to be had (available while supplies last). I did a little counting and my inbox received 324 Black Friday emails announcing sales, deals, specials, and other marketing miracles. I’ve received 88 Cyber Monday emails promoting today’s deals but the day has barely begun so that number is low. My business account received far fewer which I guess means that neither day is as huge for B2B selling.

I don’t know about you, but I deleted the vast majority of these emails without even opening them. It wasn’t that they had crappy subject lines. They all just got lost in the flood created by the breaking of the holiday dam. Interestingly, Amazon, from whom I get a daily mail about something I might have been checking out in the last week, only sent a single missive for each sale day while several other retailers sent multiple emails every day.

What’s a marketer to do? The next month is a prime selling window for nearly every brand so sitting it out isn’t really an option. There needs to be a recognition, however, that the noise level is at jet-engine levels and something needs to help your marketing efforts get noticed. If you’re thinking that moving to social channels is the answer, it’s probably not. Sure, it might be easier to get in front of the customer but, as a McKinsey study stated:

E-mail remains a significantly more effective way to acquire customers than social media—nearly 40 times that of Facebook and Twitter combined. That’s because 91 percent of all US consumers still use e-mail daily,1and the rate at which e-mails prompt purchases is not only estimated to be at least three times that of social media, but the average order value is also 17 percent higher.2

I’d suggest avoiding the flood as best you can. Start your holiday season in early November (or maybe even late October if you can avoid the Halloween noise) by teasing offers to come. Get your customers in the mood to buy. Who wouldn’t want to have their holiday shopping done early? Obviously, if you’re not checking your outbound mail across every platform to be sure it renders properly you’re committing marketing suicide. Responsive design is a must!

Finally, go local and get personal. Whatever you can do to tailor your messages to each location and/or each customer will greatly increase your conversion rates. I’m always surprised when I get what is obviously a generic email when even minimal segmentation would get me to read it. There are dozens of retargeting technologies out there. Speak as if you were at a cocktail party – one to one – and not with a bullhorn.

To paraphrase The Boss, have you thrown your marketing to the war, or did you lose it in the flood?

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Filed under Consulting, digital media, What's Going On

This is a week for friends and family as we approach the Thanksgiving holiday. Most of what’s being advertised, based on my narrow sample of one, are cars and drugs. Admittedly, my viewing tends towards news and live sports with a smattering of public TV shows and other entertainment. I scroll through the commercials in the latter category but I can still get a sense of what’s being marketed.

Photo by +Simple on Unsplash

Why I raise this is that it seems to me to be a missed opportunity. As I initially stated, this is a week where friends and family gather, and when they’re not stuffing their faces or yelling at football, they talk. Among other things, I’m sure they talk about services they’ve used, places they’ve eaten, and prodcuts they’ve bought. It makes total sense that research shows that nearly three times as many people said content from friends and family influences their purchase decisions compared to content from celebrities. You can imagine how powerful it is when that “content” is delivered in person at Thanksgiving.

The research – The 2017 Consumer Content Report: Influence in the Digital Age, by Stakla – also found that

  • On average, people are able to identify if an image was created by a professional or brand vs. generated by a consumer, 70% of the time.
  • Consumers are three times more likely to say that content created by a consumer is authentic compared to content created by a brand
  • On average, 60% of consumers say content from a friend or family member influences their purchases decisions, while just 23% of consumers say content from celebrities influenced their purchasing decisions
  • People want to see content from people they know or that they can relate to.

I’m not suggesting that some brand co-opt Aunt Sally into being a hidden spokesperson nor that some product unleashes an army of Aunt Sallys into every table. I do think, however, that there is an opportunity around this time of year to focus your brand and your marketing so that you’re top of mind as the conversations are taking place. If sharing is caring, your customers need to care enough to do so and this is the best time of year for that to happen. What are you doing to help them with that?

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Filed under Helpful Hints, digital media

The Real Magic

I bought a ticket yesterday to see the Michigan Wolverine basketball team play North Carolina. It’s a chance to see a team that I root for in person, and since I don’t live close to Ann Arbor, those chances don’t come very often without significant travel. It wasn’t cheap – over $100 to sit in a so-so seat – but as I’ve written many times, cost and value aren’t the same

Yes, the game will be on TV and I could just stay home and watch it, as I do many of their other games. In fact, as a person who made a living in the sports TV business, I often ask myself why people both going to games now at all. After all, it’s expensive, it’s time-consuming, and the viewing experience is often much better sitting at home. I know from my time at a league that clubs are well-aware of this and they try to make the game-day experience worth the time and money, and many do. But the real reason I and other fans go to the game is something that any of us can bring to our business: authenticity.

I’ve been to hundreds of sporting events. I’ve been to hundreds of concerts. They’re often forgettable – your team getting shellacked or a bad night for a band. But every time the experience is real, and part of that is sharing it with thousands of others. Some bands forget this – they use a lot of recorded sound in their show, often including vocals. Some teams come out tired and slow – maybe it’s their third game in four days. No magic there because in neither case are we seeing the real deal – an organization performing at its full potential. The fans know it too – there’s no electricity in the building (and in sports, there’s often a lot of negative energy expressed as booing). People want experiences, and especially experiences they can share.

This is something any business should remember. Customers want something real. They can tell when we’re “fake nice” or when we’re being unresponsive. They want consistency too. The fan who pays for the “off night” goes away unhappy and is unlikely to return. As our lives get more virtual, I think we all crave genuine things, experiences and businesses among the things for which we hunger. You?

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Filed under sports business, Thinking Aloud