Showing posts with label Busines Practices. Show all posts
Showing posts with label Busines Practices. Show all posts

Wednesday, October 31, 2007

Marketers love to not know


Harry Webber wrote an interesting post on his blog discussing the cluelessness of marketers and advertisers:

"Right now the weight is on the big interactive shops like Razorfish, Sapient and Digitas to come up with the breakthroughs. Those guys believe that the tailoring of messages via computer technology to a person's interests based on past purchases or preferences is where everything is heading. Of course that all sounds very efficient and stuff. But what is also important is the manner in which a message is conveyed.

Those guys are great with technology, but in the messaging, or content as they call it...not so much. It's the same as when you meet someone with whom you share similar interests, but despite that, you never really click because you find something in that person's manner off-putting. Technology alone will never be able to adjust our sales approach and delivery to better fit with an individual or situation.

The great untapped potential lies in being able to establish electronic connections with consumers in ways that are not always based on having a huge database of past consumption habits. Which means we have to develop ways of cataloguing emotional traits and human reactions. That's when those of us who don't know nothin' will have the means at their disposal to begin to learn somthin'. I'm not holding my breath on that one."


My theory: The advertising business will separate into two, distinctive businesses:
One will be data-driven: low margins, marketing based on algorithms and data-modeling. Google/Doubleclick and aQuantive/Microsoft are well on the way to dominate that market. Agencies will become secondary, just like SEM agencies are becoming less and less important.

The other business will be experiential, conversational, participatory and people-driven. This core business model will revolve around problem solving for clients. And people.

If you're in this field, you will have to understand that it's going to be messy, chaotic and exciting. We will have to adapt in real time to changing problems, solutions and opportunities. And focus on business problems and not on media tasks.
I'm looking forward to it.

Saturday, August 4, 2007

Long live the real CEO


The new millennium is only 7 years old and it’s already littered with scandals, perp walks and a declining trust of people in institutions: Enron, Jack Abramoff, WMD’s in Iraq, Pet Food Recalls, Barry Bonds, Catholic Church sex scandal - you name it. And we thought the 80’s were the decade of greed.
Boy, have we learned from the 80’s and perfected the skill of distorting the truth just to get ahead or make another buck.

Politicians and industry tycoons have started to pay the price, either by going to jail or suffering historically low approval ratings. Marketers have been spared iron curtains so far but our credibility has suffered dramatically.
Sure, we can always point at technology for the rise of social networks and peer-to-peer marketing. But that’s only part of the picture. People don’t believe in ads and don’t trust marketers anymore because too often we acted without integrity and rather shady: Business managers went to jail for ‘creative accounting’.
Marketers went to the ‘Consumer Ignorance Jail’ because of ‘Creative Marketing’.
Just have a look at the current WOM bandwagon.
Ok, any intern understands now that WOM is the best and most efficient way to connect with consumers. And there are many brave souls out there trying to find this connection in an ethical way. But the vultures are closing in: Faux blogs, blog aggregators selling their soul to the almighty dollar, bloggers turning into escort services (Can somebody say Payperpost?) for corporations.

People look for integrity when connecting with a brand. The current ‘green’ and ‘organic’ trend is proof of that new found desire for deep-rooted integrity. But most brands don’t understand yet that integrity is not a ‘nice to have’, rather the admission price to be considered by customers, one of the pillars of a strong brand. And it shows: Good companies have rules for ethical conduct. And that’s where it ends. Employees and executives have to figure out the rest. If they fail, companies are fast to drop them and point at their ethical playbook. Most organizations don’t offer discussions about ethical conduct and hope that their rulebook will suffice.

It doesn’t.

People are hesitant buying from good companies.
They expect more - A great company. Or even better, a great, ethical
company with 3 basic rules:

- People are not cash cows, they are brand partners.

- We only sell products that are exceptional. And don’t try to cover up mediocre products with exceptional advertising.

- Long-term relationships are more valuable than quarterly profits.

Oh boy, the CFO doesn’t like to hear any of this. But the CFO doesn’t like to hear either that the company is going under because consumers were disrespected and mediocre products didn’t sell.

Maybe it’s time for the Chief Ethical Officer: An executive that clearly defines the ethical roadmap to avoid the fate of the Enrons of this and future worlds. An executive that shares power with the CMO and reports to the Chief Executive Officer. In a perfect world, we wouldn’t need a Chief Ethical Officer. But people have given up on the perfect world. They are happy with an ethical company that believes in integrity. Let’s give them what they want.