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.

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The Top Four New Business Trends for 2010

January 19, 2010

As the advertising world slams the door on a very difficult 2009, advertising agencies are looking ahead to 2010, hoping to deliver stronger growth in the sector. What lies ahead? Nobody really knows – However here are four key trends that in my opinion are sure to make waves in the marketplace!

The End of the Digital/Traditional Agency Divide.

I have no doubt whatsoever that the imaginary line dividing traditional and digital agencies will not completely disappear. But 2010 will see the distinction blur to the point of being meaningless. The Great Race, as Forrester Research calls it, pits digital shops looking to hone their branding chops against traditional agencies adding tech skills. This will in turn lead to more digital agencies competing for (and sometimes winning) through-the-line assignments, plus more clients will be willing to choose a lead agency based on which of its roster shops comes to the table with the best idea.

Social Media Will Become Synonymous With Digital.

There is no doubt that Twitter became the Cinderella of 2009. In 2010 we will see social-media tools being treated as an integral component of the digital world as predicted by Altimeter Group’s Charlene Li :

“Social media will become “like air,” and be pretty much everywhere”.

That means publishers and marketers will use tools like Twitter and Facebook Connect to make experiences more social. More marketers will look at social as an integral part of their digital strategy, rather than a stand-alone area for experimentation.

 The Year Mobile Marketing Comes of Age

I know that I have written about this subject many times over the last year however, 2010 is certain to be the year when the mobile advertising market finally takes off.  According to a recent Adweek article, heavyweights Apple and Google are poised to face off in the key markets, with Google pouring its seemingly infinite resources into the development of the Android operating system.

The competition will open up new opportunities for marketers in the burgeoning app economy. The biggest push should come in location-based services, which hold the possibility of giving brands the chance to minutely target consumers.

Data Du Jour.

In 2010 we will continue to see exponential demand from marketers for data served up real time in a user friendly format. Agencies will be expected to have the ability to integrate data across all channels and from all sources. They will be looking for everything from data analytics, to web analytics to data modeling in support of personalized content delivery to advanced behavioral customer data and segmentation. 

A 2009 survey conducted by Unica revealed that 72% of marketers had no full time staff member devoted to data analytics. In 2010 they will solve this issue by either developing the capabilities in-house or source it from a capable agency partner.

 


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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The Two People Most Critical To Agency New Business Success!

December 17, 2009

 

Is getting in the door and developing the new business lead important? “Absolutely!” However, if your follow through is lacking, all that development work and investment just goes down the drain accompanied by increasing agency new business strain. Critical to achieving new business success is a great pitch strategy, a pitch czar, a well articulated deck and a well rehearsed team! Without all of these, it does not matter how creative your agency is!

The agency pitch environment is incredibly frenetic, fraught with individual agendas and distracted by the pressures of ongoing client responsibilities and work. It is not unusual for an agency to assign pitch leadership responsibility to a senior account person, who by the way is already inundated with existing client work.

 As you have probably found out already through experience, this simply does not work. If you are serious about new business and the need to win, you have to allocate the right resources. It goes without saying that you need the “team to win” versus “the team available, however without the following two people, your chances of success are slim.

 

 The Pitch Czar:

It is imperative that you appoint a pitch leader that has both the responsibility and authority to lead the pitch. This person is responsible for:

  • Making all the hard decisions, their word is the last word on everything.
  • The pitch strategy.
  • Making sure that the pitch work addresses the brief.
  • Introducing as required external resources and partners.
  • Keeping in touch with the client/consultant, and constantly building the pre pitch relationship.
  • Keeping the team on track, on budget and on time.
  • Orchestrating the final presentation format, pitch logistics, leave behinds etc.
  • Post pitch follow up.

 

Internal New Business Coordinator:

The Pitch Czar cannot achieve success on his/her own. They need the support of an internal new business coordinator. This individual is internally focused and ultimately responsible for the day to day management of the pitch and budget management. Their responsibilities include but are not limited to:

  • Development and control of the pitch deck, including the quality of the final output.
  • Keeping the pitch team on budget and delivering each step on time.
  • Implementing the agreed pitch process and ensuring everyone adheres to it.
  • Coordinating deliverables from outside resources, if any. (research etc)
  • Food and drink for pitch team during late night sessions.
  • Production of any leave behinds.
  • Researching the pitch venue and layout and determining what is possible or needed from a presentation perspective.
  • Equipment and technology required for the pitch.
  • Back-up plan for a possible technology failure.

 

The simple truth is that assigning senior account people who are already overloaded with existing client work is not going to deliver the results you need. In fact it will only serve to distress your pitch closing ratio and ultimately demoralize the agency. In my consulting practice I see the same mistakes being made every day. On the other hand, I also see the benefits when it is done correctly.


Ad Agency New Business on Steroids… Powered By Google’s New Social Search.

December 11, 2009

Google recently made big news by combining state of the art search with social networking to launch Social Search. The basic idea is that, if someone in your social circle has ever commented about the topic you are searching on, that content will appear on the first page of results. Imagine what this could mean for ad agency new business prospecting!

The meteoric rise of social media taps into our desire to share our thoughts and perspectives with the world. The trouble, of course, is that most of that information is highly disorganized. That is, even if your best friend tweets their opinion about the movie you’re thinking about seeing tonight, if you’re not online at the moment of the Tweet, you probably won’t see it.

According to a recent article written by Gary Stein of Click Z, this disorganization of information is precisely the problem that Web search was invented to take on. And, now that there is a significant amount of content here, it seems like we are finally going to see the merging of social networking and search.

The implication of this is that, you’re no longer dealing with content nearly as much as you’re dealing with people. You need to pull together a plan that will give marketers experiences and then drive toward a very new and unique conversion: from someone who believes something to someone who talks about what they believe.

This is remarkable because there is, of course, a humongous industry built around trying to work both content and networks in such a way as to push your page to the top of search engine results. To say that the ability to get there via someone’s friend/connection is disruptive is to say the least. It means that optimizing for search absolutely means engaging in social marketing. Social Search is in beta now, but not for long. When it rolls out, you will need to include a social marketing plan in your search plans.

The New Conversion Metric: Knower to Advocate

The article goes on to that we will see a new generation of online marketing focused on getting people to post something to their networks. We have this already, but it is in its absolute infancy. We have seen buttons that allow people to share content become ubiquitous as a part of page layout. But this is information architecture, not marketing. Sharing content seemed like a good way to increase page views and drive traffic. But now, it’s more important. You need to get people to say positive things about your brand because that content will soon be the most valuable element returned from a search.

Just imagine how powerful this could be for agency new business prospecting.


Brand Engagement…The Foundation for Agency New Business Success

December 9, 2009

The power of online brand interaction is not to be denied: A solid majority of connected consumers have had their opinion of a brand swayed, either positively or negatively, by an online experience. The same principle applies to ad agencies and the universe of marketers out there!

As we move deeper into this “conversation economy” true band engagement is becoming more and more important. Agencies must create ongoing and relevant dialogs with marketers if they are to have any hope whatsoever of becoming part of the consideration set going forward.

Agencies are consistently telling clients that they should be doing this as an integral part of their marketing communications strategy, yet many of those same agencies are not practicing what they preach. The key to success is developing enough “engagement” between your brand and your prospect to be able to make their consideration list.

Effect of "Friending" a Brand on Facebook or MySpace According to US Internet Users, August 2009 (% of respondents)

In a recent survey conducted by Razorfish (FEED 2009), an impressive 64% of connected consumers told Razorfish they had made their first purchase from a brand because of a digital experience. And friending, following and content creation spurred upticks across the marketing funnel—from raising awareness to consideration, purchase and recommendations to friends.

“Digital experiences not only build a brand, they can also make or break it. For those brand marketers still neglecting (or underestimating) digital, it’s as if they’ve shown up to a cocktail party in sweatpants,” according to the report. “Invariably, consumers will choose to converse with a savvier—and hopefully more stylish—partner.”

Remember, marketers are consumers too, and they behave the same way when it comes to decisions that affect their brands and the companies they choose to partner with.

How effective is your agency’s current brand/customer engagement strategy?



Already missed your Q1, 2010 new business targets?

December 1, 2009

 

 

If you did not start your 2010 new business preparation and prospecting activity back in at least September of this year, you have probably already missed your Q1 new business numbers for next year!

 Back in July of this year I published a blog post entitled “Ad agencies…2009 is over. Focus now on 2010”. I know it seemed far too early to be thinking about next year, when most of you were still stuck in the trenches fighting to deliver on current year targets. The reality is however that it was not too early at all.

This time of the year is normally characterized by missed new business targets, disappointed management and the start of the usual end of year agency new business professional musical chairs.

 If you are indeed just starting your 2010 new business planning and prospecting activity now, your efforts will probably have little to no impact on the first quarter of next year. The prospecting work undertaken during the last 3-6 months of this year will determine your success (or not) in the first part of the New Year.

 If you find yourself in this position here are my suggestions as to what you might do:

  • Do not delay any further, start your planning immediately.
  • Communicate with your agency management team and let them know that you may well be behind the eight ball. (It’s better to be upfront than wait for the surprises and the resultant disappointments).
  • Review your Q1 targets for 2010 against your current pipeline and activity. Be honest with yourself and realistic.
  • If necessary adjust your Q1 targets accordingly. (DO NOT just push numbers around. That means don’t just move the dollars to later in the year, keeping the same overall target. You may just be arranging a stay of execution.
  • Execute against your plan, track your progress and keep lines of communication with your management team open.

 

 

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