Tag Archives: Marketing and Advertising

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?

Advertisements

Leave a comment

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?

Leave a comment

Filed under digital media, Growing up

Why Does Anyone Buy Digital Ads?

Billions of dollars are spent marketing via programmatic advertising. Many billions more are spent paying for app installs – money that changes hands when an ad convinces a consumer to install an app on their smartphone. Ask yourself this: in what other business do you as a customer have a pretty decent chance of being defrauded? Off the top of my head, I can think of used cars and the investment world as places where customers should tread exceptionally carefully. Each of them has a certain subculture of ripping people off and there is a small percentage of bad actors who cause the bulk of the problems.

Try to wrap your head around these numbers. Somewhere between 3% and 37% of ad impressions were found to be from robots and not actually delivered to human eyes. That doesn’t seem bad until you do the math and see that over $6 Billion is spent on fraudulent ad impressions.

Do I have your attention yet? How about this from eMarketer:

eMarketer estimates that $7.1 billion will be spent on mobile app install ads in 2018, up from $6.5 billion last year…Several companies have conducted research that indicates how expensive install fraud is for marketers. Mobile marketing analytics firm Adjust estimated that between July and September 2018, 13.7% of app installs were rejected as fraudulent. According to Tune, app-install fraud cost marketers nearly $2 billion in 2017. DataVisor stated that for some ad networks, half of their app installs are fraudulent.

Is the industry trying to solve this? Of course it is, but it’s almost a Sisyphean task. One problem is solved and another method to defraud marketers and publishers pops up, and it’s been going on this way for as long as I can remember. Even among the legitimate ad service providers, there is an industry-wide reluctance to share the “black box” of how these systems actually do what they do. Do you think it’s only the little guys? It’s not. Facebook has been sued for overreporting how much time users spent watching videos. The suit says that Facebook knows that the majority of video ads on its platform are viewed for very short periods of time—users scroll right past. They claim that if advertisers were more widely aware of this fact, and in particular, if they knew that their advertisements were among those that were not drawing viewers’ attention, they would be less likely to continue buying video advertising from Facebook.

I tell clients that they need to be extremely careful if they go beyond search engine ads into other forms of programmatic. While I am well aware of how effective digital marketing can be, I constantly wonder if the bad actors are making that effectiveness almost impossible to achieve. I don’t know why anyone would enter the sewer that the digital ad world has become, at least not without full protective gear. Am I being too critical here?

Leave a comment

Filed under Consulting, digital media, Huh?

Thank You For Your Service

Yesterday was Veteran’s Day. I don’t typically post on Sundays but I did want to honor all of those who served by putting out something, even if a day late. This is my post from 2009 (yes, I’ve been at this for quite a while) and I like it as much now as I did then. Thank you for your service if you served and please remember to thank a vet, even if it’s a day late.

Today is Veteran’s Day, a holiday which was created to commemorate the end of “The War To End All Wars.” While that part didn’t work out so well, it’s a worthy celebration of our men and women who have served and are serving in the Armed Forces. My Dad is one of those vets. He fought – as Archie Bunker used to say – in The Big One – WW2. And while he’s taught me a lot over the years, he and his fellow vets teach us another really valuable business lesson to go along with all the others.

Veterans Day 2007 poster from the United State...
My father got out of high school and went into the service like most of the young men (and many young women) of his generation.  They put their country ahead of themselves realizing that the answer to “what’s in it for me” lay in the preservation of the principles on which this country was founded and which made everything else in their lives possible.

The really inelegant analogy I want to make has to do with how we approach business.  While the stakes in business aren’t nearly what they were and are for the vets, there are still people making that same decision today both in and out of business.  That decision is to put something else – your customers in the case of business, your country in the case of vets – ahead of yourself.  I’ve written a lot about everything from lousy customer service to marketing messages that shout “me me me” and not “you you you.”  That’s so 1999, isn’t it?

Converse, don’t spew.  Listen, don’t talk.  If I can’t get you to engage in a conversation and put others first because it’s smart, how about to salute the vets?

Any takers?

Leave a comment

Filed under Thinking Aloud, What's Going On

Going Negative

It’s a bit less than a week before Election Day and I, for one, can’t wait for the elections to be over. That will mean that the political ads will end too, and that can’t happen soon enough.

Putting aside politics, the vast bulk of these ads are horrible marketing. One thing that marketers learned long ago doesn’t work is badmouthing your competition; yet damn near every ad I see across the multitude of channels I watch and stream is 30 seconds of negativity. These folks spend their allotted time distorting positions, taking things out of context, and flat-out lying in many cases. The candidate-produced ads are bad and the PAC-produced ads are even worse. You’d think they’d stop. In 2007, the Journal Of Politics did a study of negative ads. They found:

…that negative ads tended to be more memorable than positive ones but that they did not affect voter choice. People were no less likely to turn out to the polls or to decide against voting for a candidate who was attacked in an ad.

While campaign consultants seem to think that these ads work, science proves otherwise. Of course, there are many folks out there who don’t believe in science but that’s another screed…

It’s bad marketing. Going negative makes you look petty and unprofessional. Playing up your strengths always works better than bashing a competitor’s weaknesses. Good marketers explain how they are going to solve your problems. I think good politicians should do that too. I don’t want “small” people representing me. If you can’t run on your positions and your solutions, then how am I to trust that you can outperform the one running against you?

This applies to your business as well, obviously. Do you see a lot of non-political negative ads? No, you don’t. There are many good reasons for that. Do you see a lot of false claims in non-political ads? You sure don’t – there are laws against it. The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true. It seems to me that many political ads do just that, unfortunately.

Politicians may be brands, but they sure don’t advertise as if they were. Going negative isn’t particularly helpful in non-political marketing and it’s just as bad in politics. That’s one man’s opinion. What’s yours?

Leave a comment

Filed under Consulting, Huh?, Thinking Aloud

By The Numbers

Foodie Friday at last! I went out for breakfast this morning and as I watched my server typing my order into the Point Of Sale system, I wondered what was coming out the other end. No, not if my order had been captured correctly or if the ticket would print out correctly. I wondered if the owners of the place actually used the data that had just been gathered. Restaurants generate a phenomenal amount of data although I’d be willing to wager that a minority of them actually look at, analyze, and employ it to improve their business. Then again, I’d be willing to bet that many non-food businesses suffer from the same omission.

Think about it. A restaurant gets information from their POS system – what’s selling and how much does it cost. They see if something is more popular at lunch than at dinner. They can look at their reservation system to know when they’ll be busy and their seating record to know how many covers they’re selling. Smart ones look at how many parties of which size were kept waiting (maybe we should turn the 6-top into a 4- and a 2?). They know what drinks have been ordered. Their suppliers have data for them – what’s available and what does it cost? Then they have their own internal accounting – labor costs, etc. Each of those things relates to the other. But there’s more.

What’s posted on social media? Whats the most-photographed dish? What’s liked and shared? How many reviews and are they positive? What are they about? There’s a lot of data to collect from a multitude of sources – OpenTable, Facebook, Twitter, Yelp, TripAdvisor, Foursquare, Urbanspoon or Instagram. All of the former data is very structured and it tells you “what.” The social stuff, along with any loyalty data you might have is unstructured and it can help you to understand “why”.

Maybe if you overlay the daily weather during service hours you can infer a causal effect on any of the above. You can adjust what’s displaying on your drive-thru board when it’s busy to show the menu items that may be lower-margin but quicker to prepare in order to speed the line. If you collect emails (your reservation system does!), you can use Facebook or some other data provider to build out profiles so you can know your customer and better target your marketing.

My point is that every business has a similar capability these days. We might not have reservation systems but we do have online commerce or websites or apps. We need to be less intimidated by big data and more proactive with respect to learning about our customers and how they interact with our offerings. Does that make sense?

Leave a comment

Filed under Consulting, food, Reality checks

Your Best Steak Forward

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?

Leave a comment

Filed under Consulting, food, Helpful Hints