Tag Archives: Marketing and Advertising

Fending For Yourself On Facebook

We used to be awfully smug when I was working for network television. After all, if an advertiser wanted immediate national reach there were no other options. If they didn’t want to go through the hassle of buying dozens or maybe tens of dozens of individual markets in spot television, then they had to come to one of the big networks. Over time, cable TV cut into that dominance but adding a few broad reach cable networks into the mix didn’t hurt us too badly. Until it did.

Today, the audiences for network TV are big but they certainly have been bigger. More importantly, there are many others with comparable audiences and advertisers have a lot of choices. More often than not, when the channel of choice is digital, the medium of choice is Facebook. They bill themselves as a content platform but that’s not really true. They’re a publisher. They curate content from others and control the content that appears, just the way the TV networks used to do before they started creating many of the shows themselves. Slowly, they’re learning that they are responsible for the content that appears on their platform since they’re picking and choosing. Publishers (think the Times or Journal) are responsible when their publications (platforms?) are used to spread lies or infringe on copyright. There is one area, however, in which they claim no responsibility at all.

This is from an Ad Age article:

When Facebook’s Campbell Brown addressed an auditorium full of magazine executives in New York Tuesday, she did not mince words: The social network is not here to save their businesses…It was a sobering and frank message for an industry looking for answers. Facebook has endured criticism from media companies for encouraging them to invest resources into its distribution platform. Facebook has persuaded publishers to push into live video, fast-loading Instant Articles, longer Watch videos and other offerings, for example, but none have reaped significant returns.

In other words, while we encouraged you to invest in our platform and grow our engagement with audiences using your content, you’re on your own when it comes to reaping the rewards. In fact, it’s worse than that since Facebook now demands that publishers pay for any significant visibility. Facebook is in a position analogous to where we were at the TV networks 30 years ago. We didn’t realize at the time how tenuous our grasp on our audiences was nor did we do a good job of working in a balanced partnership with our advertisers. Facebook manages to piss off the marketing community almost as often as they do privacy advocates. As one analyst note said, “Facebook is at risk of being massively unfriended by its 7 million advertisers.”

Personally, I’m wondering why they have as many as they do, given their attitude to their audiences, to content providers, and to marketers. Yes, I get the numbers but I also know that there are many other choices in marketing today. Maybe the digital platforms of the TV networks? Remember them?

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Filed under Huh?, Thinking Aloud

Slow Down

“Fail fast” has become one of the mantras of our age. The notion is that iterating fast failures will get us to the desired result faster than taking our time and seeking a more perfect answer. I agree that the perfect can be the enemy of the good and that at some point the cost of reducing variance and getting to the perfect far exceeds the benefits derived from actually getting there. But I’m not so sure that slowing down and taking a bit more time is a bad thing. Let me explain why.

People are deluged these days. Marketing messages overwhelm them. We don’t have 100 channels of entertainment nor even 1,000. There is an unlimited and expanding number of sources, both physical and digital, of entertainment. Walk into any supermarket and the product offerings in almost any category boggle the mind. Why is this a big deal? Because I don’t think you get a second chance. If you’re not solving a problem and creating value for the customer right out of the box, you’re dead. That means that you have to get it right the first time.

How many apps have you installed and removed from your phone because they didn’t meet your expectations the first time you opened the app? Was version 2.0 better? Who knows – they had their chance. How many new restaurants have you tried that were disappointing either in food or service and not returned? Did the menu evolve and new a manager show up to fix service? Who knows or cares – there are plenty of other options.

I’ve noticed it in a bad habit I have. My brain is often working too fast as I’m listening to people and I will often respond before I’ve listened to all the information they are trying to convey to me. I need to slow it down a bit so my first answer to them is the right answer and not something that I need to revise.

If you make things, do market research. If you write things, proofread them and put them aside to read them again in 5 minutes instead of hitting “send”. We all feel the time crunch and the need to get stuff done, but slow down a bit. Your results will be better and you’ll actually save time since you won’t need to do it all over again as more information changes your thinking. Make sense?

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Filed under Consulting, Helpful Hints, Reality checks, Thinking Aloud

When Free Is $99

If you’ve not moved or bought a house recently, you are probably unfamiliar with the deluge of mail you receive for everything from supplemental mortgage insurance to yard services to security systems. The last time I bought a new place was in 1985 when it must have been a lot more difficult to pull together all the names and addresses of those people filing deeds or getting new mortgages. Apparently, it isn’t today.

One of the offers that showed up in the mailbox on Monday came from…well…I actually am not really sure from whom it came since there wasn’t a return address. It says it wants to welcome me to the neighborhood with a FREE OFFER! Of course, nothing in this world is free and this offer isn’t any different. The “free” security system will be installed with a $99 customer installation charge and the payment of $28 a month for monitoring. The free offer will only cost $435 the first year, and you have to sign a three-year agreement. Nice, right?  The fine print, which takes up a third of the second page, also mentions that labor charges might apply and that there are additional fees for various monitoring services beyond the basic. There are also limits on how many sensors you can get if your home isn’t prewired. Of course, it also comes with a $100 Visa gift card, so I got that working for me, which is nice.

This is yet another example of shady marketing. Sure, it’s a free offer in that the offer is free. The alarm and monitoring will run you thousands of dollars. The company behind it is called Protect Your Home and out of the 63 reviews for one location on Yelp, 59 are one-star reviews. There are complaints about being lied to by technicians, missed appointments, non-existent customer service, and even forged signatures. The BBB shows 1,630 complaints in the last three years. One can’t help but wonder why ADT, for whom they are an authorized reseller, doesn’t monitor how their brand is being marketed and serviced.

Trust is everything in marketing these days. A lot of fine print, unless it’s the sort of regulatory stuff the government makes you write as in a drug ad, is generally not a good indicator of trustworthiness. “Free” should really be free or the word should not be used. It sets an expectation which this company clearly doesn’t come close to meeting when the offer is broken down in detail. Honest marketing is one of the first steps to happy, satisfied, long-term customers. Beginning any relationship with a lie or half-truth really isn’t, is it?

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Filed under Consulting, Huh?

How Your Dog Food Tastes

I saw something in an article this morning that had me nodding my head in agreement and I thought it was something that all of us should think about. It was a piece about how the growth of marketing technology companies has stalled and it gave as a reason this:

There is a long list of sales and marketing tech vendors that have had their growth stalled for a number of reasons: failure to find a use case with broad market appeal, product based on a feature, or quite simply couldn’t execute.While these companies might have received more funding two or three years ago, in today’s climate VCs are not replenishing their offers. Today, there are big rounds for those with momentum and a big story, or no funding for those that don’t.

In other words, many of these companies have been able to attract a client base but the results those clients were expecting haven’t been there. That’s a critical thought when you’re making promises, isn’t it? I can’t begin to count the number of tech companies I’ve spoken with over the years that made huge promises but failed to deliver.

I wrote about this several years ago. Way back in 2011, I wrote:

I can’t tell you how many presentations I’ve sat through for companies that were going to grow my revenues 10x but wouldn’t take 90% of the first year’s incremental revenues as a fee.  Big red flag.  Then there were the companies who promised great service but wouldn’t sign service level agreements that legally obligated them to provide that great service.

So at the risk of repeating myself, I’m going to repeat myself (this time from 2016):

Nothing like eating your own dog food, right? But that’s a critical part of serving our customers well and each of us needs to do that on a regular basis. When was the last time you tried to go through checkout on your own online store? How was the experience? How about trying to return what you purchased or put in a call to your customer service department? My guess is that none of your top managers have done any of those things in a while.

You can only grow so big if the results aren’t there. If you haven’t explored those results with your customers along with the time, effort, and expense it took them to achieve those results, you’re not doing your job. More importantly, you’re setting your growth curve on a downward course because nothing in business happens in a vacuum these days. People talk.

One thing I’ve learned in consulting on franchises is the importance of what we call validating the franchise. It’s when a prospective owner speaks with current owners to find out if the representations made by the franchisor are accurate and complete. It’s kind of like checking references when you hire except the FTC requires the franchisors to disclose the names and phone numbers of all their current franchisees so you can’t control with whom a candidate speaks. That means the results have to be there, pretty much across the board.

When was the last time you spoke to your customers about their results from using your product or service? If you have to think about it, it has probably been too long. Food for thought?

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Filed under Consulting, Helpful Hints

Top Foodie Friday Post Of 2018

The most-read Foodie Friday post that I wrote this year was written in October. I can’t recall what prompted the thought behind it although I suspect it had to do with some unappetizing takeout food. As the new year approaches, some of you might be making up lists of thing you will do differently and, hopefully, better. I’d urge you to put your best steak forward, which was the original title of this piece. Enjoy!

It’s Foodie Friday and we’re back to our regular nonsense here on the screed. Today I want you to think back to that time when you ordered takeout and it was not very good. I’m sure you’ve had such an instance: we all have. Maybe you ordered some fried dumplings that showed up as soggy as your recently washed laundry. Maybe the pasta dish you ordered had aggregated itself into a small object better suited for football than eating. Maybe you ordered a steak frites to go and it didn’t travel well. No one likes soggy fries and a cool steak doused in cooling, congealing butter.

For many restaurants, takeout has become a critical part of their business. Life today often leaves little time for cooking at home, especially during the week. Think about how many places you know that have only a few tables but do a ton of takeout. The growth of delivery services and apps has accelerated the trend while actually decreasing profitability (the services take a cut of the bill and in many cases, it’s close to the entire margin on the order). I’m not sure, however, that many restaurateurs put enough thought into putting their best products out there for takeout. Why sell something that you know won’t travel well?

Putting your best steak forward, so to speak, is something that every business should do. The most customer-friendly takeout situations have a separate counter to speed customer service. They might have a menu that’s priced a little differently since the costs of servicing a customer are different. They pack hot foods apart from cold foods and they take care to make sure that condensation in the hot food doesn’t make it soggy (vent holes, people). As with any customer encounter, how you present your brand matters. I wouldn’t even offer to sell a customer a product that I know won’t travel well. If they’ve enjoyed it before in my place, they’ll be disappointed. If it’s their first time, they won’t be back. We see this in businesses that take on jobs for which they’re ill-suited. I’ve turned down many opportunities over the years to build people websites since my ability to design and to code is not up to my ability to perform other tasks. That’s not my best steak.

Is that something your business is doing? Are you gathering data and keeping records of every customer interaction? Are you constantly looking for feedback so you can adjust your menu? Are you putting your best steak forward each and every time?

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Filed under Consulting, food, Helpful Hints

Searching For Answers

Happy Foodie Friday! It’s the time of year when many entities try to sum up what’s been going on throughout the year from their perspective. Google is one of those companies, and they issue their “Year In Search” annually around this time. I thought it might be instructive to look at what were the top food-related searches in 2018 according to Google. They were:

1) Unicorn cake
2) Romaine lettuce
3) CBD gummies
4) Keto pancakes
5) Keto cheesecake
6) Necco Wafers
7) Keto cookies
8) Keto chili
9) Keto brownies
10) Gochujang

The obvious question is what can we learn, both about what’s going on in the food world as well as what we can take away from our own businesses, from this list. Here are a few observations from me.

First, half of the searches were related to “keto.” For those of you somehow unaware, keto refers to a ketogenic diet.  That’s a very low-carb diet, which can help you burn fat more effectively. Many people have already experienced its many proven benefits for weight loss, health, and performance. It’s not without problems but clearly, it’s gone front and center with a lot of people this year. I try to follow a modified keto diet myself, limiting carbs and trying to eat only low-glycemic foods. What can that tell us that might help our business? If you’re in the food business it’s pretty obvious, but even if you’re not it demonstrates that consumers are paying a lot more attention to their health and their diets. Movie theaters, airlines, and other transportation companies sell food. Your company or your building may have a cafeteria that does the same. Understanding that consumer eating habits are changing is critical to maintaining those bottom lines.

“CBD Gummies” point to the changing way we’re looking at weed. These are gummies made with cannabidiol, just one of the hundreds of compounds hiding within the cannabis plant. Some have no THC, others very much do. The point I want to make is that the weed business is exploding, so much so that tobacco and drug companies are trying to figure out how they can become involved. Is CBD a fad? Maybe, but once again, we can’t ignore trends in the marketplace and we need to think through if there is an opportunity or how our business might be impacted.

The “Romaine” search term clearly derives from the e-coli scares with that green this year. A great reminder that we all need disaster plans in place.

If you’re not familiar with it, “Gochujang” is a red chile paste that also contains glutinous rice, fermented soybeans, salt, and sometimes sweeteners. It’s a thick, sticky condiment that’s spicy and very concentrated and pungent in flavor. Another reminder that not only are tastes changing but as our population base is changing, our eating, media, shopping, and other habits are changing as well. We need to pay attention.

Finally, “unicorn cakes” are just silly. They’re multi-colored layer cakes generally covered in a highly-decorated white icing. They’re a great reminder that we all need to take a little time to have fun and enjoy ourselves by indulging in something that’s totally unrelated to our work lives.

Those are the insights I take away from the list. What are yours?

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Filed under food, What's Going On

More Fake News

It’s holiday time, and holiday time is shopping time. Now if you’re anything like most people, a fair amount of your shopping is done online. Even if you don’t actually buy from an online retailer, you probably do a fair amount of your research using online reviews and they are our topic today.

A marketing solution provider called Uberall released its “Customer Review Report,” which analyzed how consumers evaluate reviews online. They found that consumers think brands should be very active online responding to reviews. In fact, 65% of consumers think brands should respond to every online review every time, whether the review is positive or negative. Other observations from the study were that 18% of consumers believe brands should respond only when the review is negative, while 10% feel they should never respond, and 6% think they should only respond when the review is positive.

How do you feel about it? Personally, I think it’s critical that brands monitor the reviews of their products and not only should they respond but they should also verify. I’ve found that review verification sites such as Fakespot provide a wonderful service. I recognize that some brands actually pay for fake positive reviews in order to mask the crappy stuff they’re selling. That’s short-sighted since the revenues they make will be far offset by the costs of returns, customer service calls and maybe even lawsuits. Running an Amazon URL through Fakespot or ReviewMeta can save you a lot of trouble and also tell you a lot about how well a company curates its reputation.

There was a study a few years back that found that 20% or so of Yelp reviews were fake. You can spend $1 to get one written and you just might end up having to pay up to $40,654 to the FTC for having done so. Online reviews are a great source of, if not THE best, information for consumers and a generally accurate reflection of how your brand is perceived. You should influence that perception through positive interaction and not through creative writing. Most of all, you should respond, especially at this time of year when it’s a crucial sales period for most brands. Are you doing so?

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Filed under digital media, Growing up