Forrester Survey Highlights Clients’ Lack Of Confidence in Both Traditional And Digital Agencies Alike!

February 9, 2010

Forrester Research conducted a “state of interactive agencies” survey of about 100 global interactive marketers. It found just 23 percent believed their “traditional brand agency” is capable of planning and managing interactive marketing activities.

While that would appear to be good news for digital agencies, particularly as digital continues to enjoy increased allocations in most marketing budgets. The Forrester survey however, found few clients are willing to give them responsibility for the brand’s overall direction. Just 22 percent agreed that their interactive agency is “ready to lead my brand.” Another 33 percent said their digital shops aren’t ready, with the rest neutral.

The result is what Forrester calls “the great race” as traditional shops scramble to add digital know-how and digital shops seek to move up the ladder to become brand stewards, rather than Web site and banner ad specialists.

The survey found that in an ideal world, clients would like to work with a single agency with 60 percent saying that they would like one digital shop.  When you look deeper into the survey data it would appear that even within digital, only one in five respondents currently rely on a single provider. Almost 60 percent of respondents currently have two or more.

For every digital agency that manages to secure brand lead responsibilities, there are just as many traditional agencies making inroads into the digital world.  Add to this the increasing number of emerging media specialists (mobile and social media) that appear on a daily basis and you have the digital equivalent of the Wild West.

No matter whether you are a traditional or digital shop, there is no doubt that you have your work cut out for you.

From a digital perspective your agency might be well served… Investing your time and money keeping abreast of new technologies and emerging media versus chasing those elusive brand responsibilities.

From a traditional perspective, your agency might be well served… Protecting your current turf and client relationships, while at the same time expanding your creative and strategic capabilities to include people like Idea Architects and Idea Engineers. Then partner with digital specialists to develop and execute truly integrated marketing campaigns.


Rx For Agencies Suffering From Digital, Direct, PR and Social Media Confusion Or Disorientation

January 25, 2010

Reduction in the role of channel specialists. Today, interactive marketers want agencies to keep them ahead of the curve. But for most agencies, this means little more than just providing executional help in digital channels.

“As marketers seek interactivity, agencies that subsist will forgo their role as channel specialists and dedicate themselves instead to determining how to change the relationship marketers have with their end customers”.    Source: Shar Van Boskirk, Forrester Research, Jan 12, 2010

The opportunity is clear. Forget about continuing to structure your agency in silos like brand, direct, digital and social marketing, and start to think about People2People marketing. If you can integrate your marketing efforts and succeed in motivating customers not only to interact with you, but to share their personal networks with you, you will have created a powerful channel for your brand in the marketplace.

Click on the link below to view or download the full presentation.

View more presentations from Clive Maclean.

Recent Fortune 100 RFP’s Search For A New Breed of People2People Agency

December 22, 2009

 

In recent weeks, a number of Fortune 100 companies have issued agency RFP’s that share a common purpose. They are all looking for a unique agency organization that can truly deliver what they refer to as “Integrated Customer Relationship Marketing”. Some common parameters across all of the documents can be summarized as follows:

  • Preferably an agency that was not built out of a historical specialty (like advertising or direct marketing etc), but rather one that has been built from the ground up with the vision of being a truly integrated shop.
  • The key disciplines required are digital, direct, CRM/eCRM, data analytics, integrated marketing planning and true channel neutrality.

A key question asked by most of them is: “What is your vision for the future of Integrated Customer Relationship Marketing?” I thought I would take a shot at answering it, and sharing my perspectives with all of you.

Here is my response:

As we move deeper into this new “conversation economy,” true brand engagement and customer relationships are becoming more and more important. Marketers must strive to create ongoing and relevant dialogs with consumers, if they are to have any hope whatsoever of remaining part of the consideration set going forward.

We know it’s been said many times before that, traditional marketing and advertising thinking is no longer effective as consumer media habits continue to evolve at an ever quickening pace. Branding as we know it is for all intents and purposes dead, as most consumers’ first impressions of a brand are what they find in search results or what they read from other people in reviews.

As consumers continue to circumvent traditional media approaches, they are gravitating towards those media/channels that provide easy access to information, advice and recommendations, plus allow them to socialize and be entertained at the same time. In the process, these consumers are building and refining their own trusted personal networks.

If marketers want to be positioned to take advantage of this evolving opportunity, the first step is to forget about continuing to structure your organization in silos like brand, direct, digital and social marketing, and start to think about People2People marketing. If you can seamlessly integrate your marketing efforts and succeed in motivating customers not only to interact with you, but to develop a true brand relationship, you may be able to persuade them to share their personal networks with you. In doing so you will have created a powerful channel and relationship for your brand in the marketplace.

Traditional direct and database marketers will be disappointed to hear that targeting is dying too. As consumers change to pulling information as they want or need it, push marketing becomes less and less relevant, no matter how “targeted” the marketer thinks it is. No longer can you just drop an email to your house file or run a banner campaign with the simple objective to sell more products or generate more leads. You have to become part of the conversation, where they are and when they want to have it. Also, keep in mind that conversations cannot be bought either, and if they are, the community often quickly finds out and retaliates.

The new age of People2People marketers have to be experts in understanding consumer habits and expectations in this new media environment. They need to be the unbiased filter that prioritizes the media/channels and indentifies the ones that will yield the greatest ROI.

This new breed of marketer will avoid the temptation to shout messages at consumers disrespectfully or target thousands of people multiple times with generic messages and offers of little or no relevance. Instead, they will embrace techniques that cultivate genuine and open dialogue with customers, where brands quietly listen and learn, and then respond with relevant content and new features and product innovations that better match the needs of the consumer.

Marketers who embrace this new reality of People2People marketing will be rewarded by clients who not only out perform their competitors, but also deliver industry leading financial results. You may be interested to know that in July 2009, a report by social platform provider Wetpaint and analyst firm Altimeter found that:

Companies deeply engaged in seven or more social channels (blogs, branded social websites, Facebook, Wikis, ratings and reviews etc.) significantly surpassed their peers in terms of both revenue and performance”.

You may think that this is a tall order, but I know that it’s not impossible. That’s because the solution can be found in the motivations of the conversationalists themselves. After all, conversation is mankind’s natural search engine.

The above being said, the question then becomes – how do you keep the conversation going? You’ll constantly be competing with other conversations for your customer’s time and attention. You spark and fuel conversations with surveys, forums and invitations for contributions that pertain to the incremental value that your brand/product can bring to their lives. Keeping ongoing conversations fresh is where contextual research and newsletters, blogs, websites, videos and social media shine.

The remaining question is how do you monitor results and measure success? According to Susan Scrupski of ITSinsider, seeing results depends heavily on how you organize your business and equip the people who are part of it.

As you enable the conversation between you and your customers, you enter into collaborative design. Picking up information and passing it into an organization that knows what to do with it is the inflection point between an integrated marketing relationship strategy and actual business success. Taking the time to measure it in the fundamental currency of business is the final step in putting all pieces in place to win in the marketplace”.

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Rx for Ad Agencies Suffering From Direct, Digital and Social Media Confusion or Disorientation

October 18, 2009

CB067305

The opportunity is clear. Forget about continuing to structure your agency in silos like brand, direct, digital and social marketing, and start to think about People2People marketing. qIf you can integrate your marketing efforts and succeed in motivating customers not only to interact with you, but to share their personal networks with you, you will have created a powerful channel for your brand in the marketplace.


Social Media Fuels Land Grab Within Client Marketing Departments!

October 13, 2009

The exponential growth in social networking and popularity of social media, has created an incredible land grab within many internal client marketing departments. This can be both an opportunity and threat as it relates to the agency world.

In a June, 2009 survey by Zoomerang/StrongMail, marketers were asked the question, “Which marketing function owns social media within your organization?” The survey revealed that 29% of respondents said that it is shared by multiple functions. The majority of respondents however (36%) reported that direct marketing owns social media with only 9% saying that is was owned by PR and just 5% claiming to have a dedicated internal social media department.

A deeper look into what may be driving this revealed some very interesting facts. According to a recent eMarketer article, when marketing executives were asked what they perceived the benefits to be of social media, their responses were as follows:

value of social 

 81% of respondents stated that the major benefits were both brand building and CRM. 69% also believed that it was a viable recruitment tool too, with customer service close behind it at 64%.

Looking even deeper, here is how this same group of marketers answered the question, “For what reasons do you use social media?”

 resons they use sm106332

                                               

For those respondents who claimed not to be using social media, here are the responses as to their reasons why not to.

Reasons they don't106328 

 It’s no wonder that social media responsibility is shared between departments for nearly a third of marketers and very clear to see what exactly is stopping the majority of the non-users from leveraging it. Depending on how you look at it, this can either be an opportunity or a threat, whether you are an incumbent agency or a competitive agency trying to win some new business.


Goodbye Brand, Direct and Digital…Hello People to People Marketing!

October 8, 2009

 

 

person to person 2

 

Marketing communication has evolved from the early one-way media (TV, print, radio) to two-way media (Internet) and now multi-way media (social, mobile). As the lines between these channels and media are blurring so quickly, it has created an identity crisis among many agencies.

Can a direct marketing agency be effective without digital and social media skills? Can a digital agency deliver the best work without direct marketing skills? Is social media just another word for PR, or is it in fact the ultimate one to one medium?

Traditional marketing and advertising thinking is no longer effective as consumer media habits continue to evolve.  Branding is for all intents and purposes dead, as most consumers’ first impressions of a brand are what they find in search results or what they read from other people in reviews. As consumers circumvent traditional media approaches, they are gravitating towards those media/channels that provide easy access to information, advice and recommendations, plus allow them to socialize and be entertained at the same time. In the process, these consumers are building and refining their own trusted personal networks.

The opportunity for agencies and marketers alike is clear. Forget about continuing to structure your organization in silos like brand, direct, digital and social marketing, and start to think about People2People marketing. If you can integrate your marketing efforts and succeed in motivating customers not only to interact with you, but to share their personal networks with you, you will have created a powerful channel for your brand in the marketplace.

Those of you who are direct marketers will be disappointed to hear that targeting is dying too. As consumers change to pulling information as they want or need it, push marketing becomes less and less relevant no matter how “targeted” the marketer thinks it is. No longer can you just drop an email to your house file or run a banner campaign with the simple objective to sell more products or generate more leads. You have to become part of the conversation, where they are and when they want to have it. Also, keep in mind that conversations cannot be bought either, and if they are the community often quickly finds out and retaliates.

The new age of People2People agencies have to be experts in understanding consumer habits and expectations in this new media environment. They need to be the unbiased filter that prioritizes the media/channels and indentifies the ones that will yield the greatest ROI.

This new breed of agency will avoid the temptation to shout messages at consumers disrespectfully or target thousands of people multiple times (reach and frequency). Instead, they will embrace techniques that cultivate genuine and open dialogue with customers, where brands quietly listen and learn, and then respond with new features and product innovations that better match the needs of the consumer.

These agencies will be rewarded by clients who not only out perform their competitors, but also deliver industry leading financial results. You may be interested to know that in July 2009, a report by social platform provider Wetpaint and analyst firm Altimeter found that: “Companies deeply engaged in seven or more social channels (blogs, branded social websites, Facebook, Wikis, ratings and reviews etc.) significantly surpassed their peers in terms of both revenue and performance.

Future growth and success will be led by those agencies that embrace this new media environment and choose to become part of a new breed of People2People agencies. Those who remain siloed will continue to become less relevant over time and unable to deliver against evolving client expectations.

 

 

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“Socialnomics” The Fuel For Future Ad Agency Growth

September 10, 2009

Social media has created a fundamental shift in the way we all communicate. In the process, we sometimes lose media, develop new media and in some cases see traditional media adapt to the new sociology and technology. A excellent new book titled “Socialnomics” explains how social media has transformed both the way we live and the way we do business.

Yesterday I was searching through some YouTube content when I found this great video about the book that highlighted almost 40 observations about the impact of social media. Some of them might be considered predictable, but many are really eye opening. What’s even more amazing is the speed at which these shifts have taken place, as well as the sheer size and geographic impact of many of them.

When I consider all of this from an ad agency perspective, it all just seems so overwhelming, yet exciting at the same time. From a sheer speed perspective, how does any agency be it specialist or full service keep up? How do they monitor these new trends and at the same time develop the expertise and capabilities to competently deliver them. Even more frightening is the concept of how an agency can stay ahead of the changes and deliver innovation and thought leadership to their clients? without resorting to the good old default approach of smoke and mirrors.

Here are a few findings from the book that I think you will find thought provoking:

  • 25% of search results for the World’s Top 20 brands are links to user generated content.
  • 90% of people who can Tivo ads actually do it.
  • 25% of Americans have watched a short video on their phone in the last month.
  • 24 of the 25 largest newspapers are experiencing record declines in readership because we no longer search out news, the news comes to us.
  • By 2010 Gen Y will outnumber Baby Boomers, and 96% of them will have joined a social network.
  • If Facebook were a country, it would be the world’s 4th largest between the USA and India. A true example of a global community.
  • The fastest growing segment on Facebook is 55-65 year-old females.
  • 80% of twitter usage is on mobile devices.
  • Email is passé’. In 2009 Boston College stopped distributing email addresses to young freshman.
  • There are over 200,000,000 blogs out there.

If you have not seen it already, please take a moment to view the YouTube video entitled “Social Media Revolution” by Erik Qualman. I think you will find it well worth your time. I know that it will get you thinking about your agency and whether you have the right plan and resources in place to take advantage of these changes in consumer behavior both now and in the near future. They are the fuel to a whole new world of opportunities for agencies who are embrace the changes and adapt accordingly.

 

 

 

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