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Constant Contact High

You've probably heard them, too - lots of smart radio ads for Constant Contact, the email marketing company that enables small businesses and organizations to create email marketing campaigns.

I know lots of people who use Constant Contact, and I often look at the bottom of email blasts I receive to see whether the company has picked up another client. 

Constant Contact is a huge success story.  In the middle of this great recession, they racked up a 50% revenue increase last year.  And they hired 170 new employees in '09, and are looking to increase their ranks this year. 

Here's another success story:  they are heavy radio advertisers, relying on national radio campaigns to tell their story. 

As their CEO Gail Goodman recently noted, "During one of the most challenging economic environments for the small business community ... (Constant Contact) delivered significant revenue growth and profitability that was well ahead of our original expectations."

This is an incredible sign that radio can deliver eyeballs - and new customers - to a "new media" company like Constant Contact.  

Radio works, when the campaign is strategic, clever, and consistent - all attributes that define the Constant Contact effort on radio.  

At a time when radio continues to be positioned as a punching bag as ad dollars move to social media, advertisers, planners, and marketer need to hear about success stories like Constant Contact.  By the way, they're even "testing" radio with a link on their website (below):

Constant Contact isn't an auto parts company, a tattoo parlor, a bar, a fast food chain, or a mattress discounter.  

They are a new media, email marketing success story.

And radio has played a key role in their rapid growth.

Big, Bigger, Biggest

A recent story in The New York Times highlighted that famous Vh1 promotion back in the '80s where they gave away 36 Corvettes - from the very first model in 1953 all the way to the current year (1989) sports car.  For a bit more than a million dollars, that much-buzzed about promotion helped put Vh1 - MTV's neglected little sister - on the map.

Conceived by branding and marketing impresario Jim Cahill, the Corvette promotion remains legendary more than two decades later.  You still "ooh and ah" when you think about the magnitude of one guy winning all those dream cars.  The winner was Dennis Amodeo who quickly flipped the cars to artist Peter Max who had an idea for an art project for the fleet that never materialized.

Now you're probably thinking, "Who has a million dollars to come up with a big promotion?"  And in fact, when Cahill pitched the promotion to MTV Networks head, Tom Freston, the response was, "This is a big hunk of change, boys."

So, here's the kicker.  MTV Networks made money on the promotion!

Working with Vh1's head of programming, Jeff Rowe (many of you remember him as radio PD Dallas Cole) and the GM of MTV/Vh1 Lee Masters, Cahill put together a plan to monetize the promotion utilizing 1-900 numbers.

Well, consider that in order to enter Vh1's contest, viewers had to use a 900-number with a fee of $2.  By the end of the promotion, more than 1.3 million viewers paid $1.49 a call to enter, two presenting sponsors ponied up $500,000, along with another million from four participating sponsors.  All told, $3 million dollars in profit to MTV Networks. 

The story is a reminder of what you could do with a lot of imagination and a few bucks back in the day.  But why couldn't you pull off a similar win-win promotion right now?  What if your company came to you with a hunk of cash and the directive to "Shake it up, make some noise, and get people talking about the station."  Or in the case of a startup, what if you actually had some working capital to launch a new station.  

What would you do?

Don't laugh.  I've had this conversation a couple of times already this year.  While this might suggest that there is indeed the beginning of an economic recovery underway, it also is a reminder of how long it's been since radio stations had any significant dollars to use in order to move the promotional needle.

Guess what?  It's not like the days when you could simply peruse this year's Filmhouse reel and buy something off the rack.  So if you had some cash right ow, what kind of television spot would you create for your station or morning show that would stand out and accomplish your goals?  Or would you even bother with TV at all?

I had a similar thing happen last week where a client programmer got a nice "gift" of contest dollars for second quarter.  It had been so long since they had actually given something away that wasn't a part of a sponsorship deal, the PD had almost forgotten about some of the great contests and promotions his stations had pulled off in the past. 

In an industry where it is becoming common to just play "small ball" with reduced staffs, minimal research, and virtually no promotional spending, it is even more important to keep thinking big in order to avoid totally losing sight of that big idea.  And as we've learned time and again, it is possible to still put that big promotion together with a combination of client sponsorships, promotional ingenuity, and a few bucks. 

Sometimes having no money for promotions and marketing becomes a self-fulfilling prophecy.  Quarter after quarter, year after year, the promotional budget comes up bare.  So managers stop asking for funds, and worse - they stop thinking about the "what if's" - the ideas that could generate awareness, more listening, and brand building. 

At a time when everyone is being asked to do more with less, it is important to not let those big ideas and dreams gather dust.  When MTV's Tom Freston came to Jim Cahill for that big idea, it didn't take long for that amazing promotion to come together.

All they did was make money and history.

So what would YOU do?

Risk/Reward

If you're a regular reader of this blog, you may be thinking, "Enough already with this Super Bowl."

But when a single sporting event attracts more viewers than any other show in the history of television, generating approximately $3 million per :60 commercial, you'll have to indulge me for one more post.

That's because with all the marbles on the line, the Super Bowl's big winners were those who didn't play it safe.  In fact, the biggest risk-takers were rewarded (or will be rewarded) with the best returns. 

First, there was Saints' coach Sean Payton who opted to start off the second half with a surprise onside kick.  Of course, it turned out to be successful, and changed the tone and vibe of the game.  Even had it not worked, however, Payton sent a message to the Colts that he was not going to simply go the tried-and-true by the book route.  It was a big risk that paid off big-time.

Second, there was Jay Leno.  After weeks of NBC corporate botching his drama with Conan O'Brien, Leno took a risk by appearing with David Letterman (and Oprah) in one of the most memorable promos we've ever seen.  By bucking convention and appearing on behalf of his arch rival, Leno sent the message that he is truly a funny, inventive guy willing to break the rules and have a good time.  By not taking it so seriously, Leno did more in :15 to repair his image than any major ad campaign (hey, Toyota, did you notice that?). 

<CLICK HERE TO VIEW VIDEO>

Third, there was Denny's.  Yup, free Grand Slam Breakfasts for every Tom, Dick, and Harriet this past Tuesday.  Did it work?  Well, the restaurant chain reportedly served up a whole lot of GSB's, while generating millions and millions of dollars in free coverage and buzz on media outlets worldwide. 

 

Is it a great return on investment to give away all that food on Denny's "Super Tuesday?"  Maybe/maybe not, but that's what brand investment is all about.  

At a time when conventional wisdom tells us that if we want to win in business, we need play it safe, don't make mistakes, and avoid risks, it might be wise to revisit that thinking. 

As we all know from experience, not every risk pays off.  And the bigger the risk, the bigger the potential failure.  But in a media and entertainment environment where consumers have seen it and heard it all before, it is megawatt films like Avatar on the one hand, and boutique projects like Crazy Heart and District 9' on the other, that have the best chance of winning this year's Oscar gold. 

Steve Jobs' iPad adventure is taking a lot of heat in the geek community.  Everyone has their snarkey list about why it is destined to fail.  And while Jobs has been widely criticized before the device is even on sale to the public, he would probably tell you that without risk (Remember Newton, Lisa, etc.), there is no reward. 

When It Goes Wrong

Toyota is going through hell right now, and in the typical frenzy that occurs in these media crazy times, they have become the butt of jokes, from late night talk hosts to YouTube.  

We can all sit on the sidelines and snicker, but the fact is, anyone who manages a company or station should get a little shiver when they read about Toyota's problems.  That's because deep down inside, we know the same thing could happen to us. 

Toyota had a sterling reputation for decades, bolstered by great reviews, a strong track record for building reliable vehicles, and fabulous word of mouth. 

Does it all just get blown up because of the company's current problems, which seem to be getting worse by the week?  Or does the equity of the Toyota brand allow them to salvage their image, and ultimately, their vehicles sales?

That's the same question that a consistently strong radio brand ought to ask when something goes wrong with a promotion, an event, a contest, the transmitter blows up, or even when a personality misbehaves, breaks the law, or otherwise embarrasses the station.  How big is that "good will gas tank" when something goes wrong, and a station is faced with a public relations nightmare?

It all comes down to how you handle it, and in a recent blog entry, media maven Joe Jaffe discussed Toyota's travails and what the company ought to be doing to turn perceptions and reality around.  Here are a few of his points, paraphrased by me.

First, the day when you could simply run a full page ad in USA Today and The New York Times are over.  That's not where most people are.  Instead, using YouTube, Facebook, and outlets that are viral and more inclusive is the way to go.

Second, make sure that your website tells the right story at a time when the station is experiencing one of these difficult, embarrassing moments.  It's the place to get in front of the problem, and address it head on.

We see this all the time in radio during a crisis when the website has not been updated and simply looks and feels out of it.  

Third, social media can help in a big way.  As Jaffe notes, Toyota has surprisingly few followers on Facbeook and Twitter.  This is because "the first people to turn to are customers, loyalists, enthusiasts, fans, friends, followers, advocates, evangelists... hell, even critics.  These groups of people don't magically materialize overnight.  They are built, earned and nurtured over time."  

They aren't alone.  A new study by ForeSee Results shows that only one-fourth of the top 100 online retailers have a Facebook presence; another quarter have fewer than 10,000 fans.

Using the connectivity of social media - as well as a radio station's email database - can quickly communicate to your customers the problem and what you're doing to solve it.  Building these networks of core followers isn't just a good idea so you can promote ticket giveaway or celebrity guests on the morning show.  This is where communities are built and nurtured, especially useful during crunch time.
 
Of course, as Jaffe points out, Toyota has also been slow to "join the conversation" on Facebook.  A commitment to dialogue with listeners/customers is also so essential to transparently working through problems and regaining brand equilibrium, as opposed to simply letting "fans" or "friends" bitch and moan about how lame the company is. 

Fourth, Jaffe talks about anticipating problems before they occur.  The importance of "contingency planning" cannot be under-estimated, as shown by Toyota, a great company that has now gotten caught - multiple times - in compromising situations with its vehicles and their mechanical/computer problems.  These dilemmas are worsened by the company's lack of responsiveness and adaptability.  

On the radio front, how vulnerable are stations because of smaller staffs and harried managers?  How many contests are being executed without the proper rules?  How many poorly conceived events aren't properly secured or managed?  How many important things are simply slipping through the cracks because of a lack of time and manpower - all with the ability to bite a station where it hurts?  

On the technical side, how many stations now lack the "redundancy" necessary when there's an engineering problem or even an "act of God" that disables the tower, the transmitter, and other key components of the broadcast chain?  The website and the stream (that so many broadcasters fought) could be the salvation the next time something goes technically awry.  In radio, there can never be too much "contingency planning" because as we all know, anything that can go wrong will go wrong. 

Fifith, there's the reaction from the top.  In Toyota's case, they have been painfully slow to provide explanations and even truth from the corner office.  Akio Toyoda, president and grandson of the company's founder, took forever to face the media.  This has led to more speculation, doubt, and questions about Toyota's intentions.  When disaster strikes, stonewalling never works.  Tiger Woods learned this, and now, so has Toyoda.  It may cost his company billions. 

Whether in a serious auto recall or a major mess for a radio station, this is where leadership rises to the top.  In our fast-paced media and Internet world, it is more important than ever for CEOs to step up, get out in front of the problem, and meet the crisis squarely.  You can question big salaries and bonuses all you like, but these are the times when corporate moguls earn theirs. 

Finally, when the problem hits the station - or car company - across the street, squelch the urge to pile on.  There is a "karma train" and it's just a matter of time before trouble arrives at every door.  Note that in the middle of Toyota's mess, Ford had to issue a recall of its own. And now Honda is experiencing problems.

GM, Chrysler, Ford, Honda, BMW and the rest would be wise to resist the temptation to try to make hay from Toyota's multi-recalls.  Toyota's backfires may make them feel good because for so long, the company enjoyed much media love and adoration.  

There's no need to hit Toyota when they're down, because consumers have already gotten the message.  Toyota will either do a better job in the coming weeks of addressing its problems and its PR - or they won't.  In the meantime, a car company with a good product and brand that provides quality and economy, along with being well-marketed and connected with consumers, will do just fine while Toyota suffers. 

Toyota has finally started running heart-warming, nostalgic TV spots that address their problems, and underscore the hard work that is being done to turn their problems around.  They are well-produced and they take responsibility for the company's mess.  If it were only that easy.  And the current wrangling with ABC-TV affiliates in the southeast over what Toyota feels are "excessive stories" muddies the ad waters even more.

There's a lot to be learned from this Toyota lesson.

Super Bowl XLIV - By The Numbers

Our consultant, Ralph Cipolla, is still frustrated that his beloved Buffalo Bills still haven't won the big one.  Undaunted, here are some of his observations from Super Bowl XLIV:

Here are some reflections of the big game from my couch: 

• We saw The Saints win their first NFL championship in their history, a franchise that was formed a week after the first Super Bowl was played.  The Saints went 10 years before posting a .500 season, and saw 20 years pass before realizing a winning season.

• We saw a victory that vindicated the loyalty of their long-suffering fans, and another layer of healing balm settle upon on a great city, that lest we forget, has endured insufferable trials.

• We saw 65 year-old Roger Daltrey and 64 year-old bandmate Pete Townshend belt out a 12-minute medley of Who classics.  In 1970, when the NFL and rival league AFL merged to form the NFL as we now know it, both rockers were 25, contemporaries of many of the guys on the field.

• We also saw another crop of SuperBowl ads, each 30-second avail costing between $2.5 and $3 million, lower than NBC's 2009 rates of $3 million per, when adjusted for inflation.

There were several different Budweiser ads, the perennial FCC-taunting Go Daddy ads, and several others of far less than "epic" production quality. 

And then there was this :60 ad, which stood in stark contrast to the others.  No famous actors, no rap stars, no Hollywood director, no Avatar-rivaling computer-generated graphics.  

Google's first foray into Super Bowl advertising, was most-likely the least-expensive and conceptually simplest and least expensive of the lot.  To my eye, it was also the most engaging, did the best job of actually demonstrating the product, and was most worthy of an on-line after-the-game replay. 

It also screamed, in a subtle and seductive manner - "new media."  If you've ever tried to explain what "search" is all about, Google nailed it in one minute.

Watch the Google Super Bowl ad here, and see if you agree.

<CLICK HERE TO WATCH GOOGLE SUPER BOWL AD>

And because parody is truly flattery, here's another version of it that showed up a few hours after the game:

<CLICK HERE TO WATCH PARODY OF GOOGLE SUPER BOWL AD>

Grace Notes

Recently, Bill Gates surprised a lot of the web 2.0 elite by re-establishing a Facebook fan page, and joining the Twitterati.  The coverage has revolved around Gates finally learning how to use these basic fundamental social networking tools that teens and the Internet's leading edgers have used for years.  

Based on his posts and his Tweets, however, I would suggest that Gates could teach many of them a lesson about how to effectively use social networking sites to communicate his thinking.  He has a new Gates Notes website, and recently tweeted that he's "excited to share more about what I'm learning."

Many of the so-called media pundits could learn about brevity, content, and when to take your shots from Gates.  He may be new at this, but already, his postings are constructive, thoughtful, and sincere.  When you read his messages, you're receiving ideas from a true thought leader - not someone who is mindlessly trying to accumulate as many "friends" or "followers" as possible.  He uses these tools with a sense of modesty and grace.

As readers of this blog know, I have struggled with both Facebook and Twitter.  While I am back and involved in both services, I continue to question whether my thoughts and observations are worthy.  It's one thing to write a blog post in this space each day.  It's another to share more transient ideas and quips on Facebook, much less the hit and run Tweets on Twitter.  

Both services have incredible value and power as we have learned over the past couple of years, but they also have the ability to expose their users as egomaniacal, trivial, and with apparently too much time on their hands.  In five days, Gates has sent out 15 Tweets.  Many of the people that I "follow" crank out that many in a day, providing me with their important insights on everything from what's in their email box this morning to their exercise routine.

Look, not everyone can be Seth Godin.  (Interesting, isn't it, that he is presently inactive on Twitter?)  We're just not all that clever, insightful, or pithy.  Unfortunately, on Facebook, Twitter, and similar digital venues, there are simply too many wannabes trying to make the cut, and diminishing their intelligence and perhaps even their reputations in the process. 

As one of my mentors counseled me early on in my career, "Leave them wanting more."  That sure runs against the grain of social networking sites and services, where there are no limits or costs to being verbose, repetitive, or irrelevant.

No one gives a shit what film I saw this weekend, my instantaneous impression of that new Starbucks blend, or which airport I happen to be running through.  (And if that kind of stuff interests you, that may say more about you than me.) 

I have opted to be judicious by limiting my posts so as not to waste anyone's time, if for whatever the reason, you're following me or have "friended" me.  If I go somewhere of interest, I'll send out a Tweet.  If I learn something that I can pass along to you, I'll tell you "what's on my mind" on Facebook.  Otherwise, I will STFU. 

I have more respect for Bill Gates today because I am watching him use these tools for the greater good.  In the process, he will enhance his image in the world community and help people along the way.  Isn't that what Facebook and Twitter are all about? 

And sorry it took more than 140 characters to communicate these thoughts.

An iPad By Any Other Name...

So, you're trying to figure out what this whole iPad thing is all about?

Well, Fujitsu says they have an iPad and "the name is ours."  Of course, they may have to get in line behind Magtek and Siemens, each of whom says they have an electronic product with the very same name. 

But perhaps the most prescient team could be those geniuses at Mad TV who predicted the invention of the iPad a few years ago.  Of course back in 2006, their model worked a little differently as you can see in the video below.  It is NSFW so keep that in mind before you click "play."

 

 

<CLICK HERE TO VIEW MAD TV VIDEO>