4sight

Stray Voltage

What happens when social media meets politics and creates an unintended consequence?

That’s what happened to two of Secretary of State Hillary Clinton’s staffers – Alec Ross and Jared Cohen.

 

Both of these guys got their Twitter thumbs slapped for sending out colloquial tweets during a trip to Syria.  The State Department was embarrassed by some of their missives, calling their messaging “stray voltage,” and there were the predictable criticisms from the other side of the aisle.

But the piece of the story that may have gone unnoticed is the importance of integrating young people into the political process as hundreds of thousands live vicariously through the tweets of Cohen and Ross.  When I wrote this blog, Cohen had amassed more than 300,000 followers, while Ross has more than 287,000.  As they journey around the globe, they have become Twitter celebrities, keeping their followers up to date with U.S. foreign policy as well as their unique views from the inner circle.

Secretary Clinton praised both Cohen and Ross, saying their ability to combine diplomacy and technology is a piece of “21st century statecraft.”  As we struggle in radio to integrate America’s youth into our medium, the political world has many of the same challenges, especially among a generation loaded with cynicism, and justifiably so. 

This is Twitter at its best – celebrities or people in a position of power or access who take us behind the curtain.  Many radio personalities have the ability to bring their special access – backstage, in the studio, or even at home – into the spotlight.  But so often, tweets from DJs have more to do with “Breaking Benjamin tickets in the 9 p.m. hour” or “Talking about Lost tomorrow morning.”

 

As mobile devices make Twitter totally accessible and ever-present, smart digital strategists and social media thinkers can do amazing things with this great tool – more important than retweeting other people’s stuff or waxing philosophically about the weather. 

Otherwise, it’s just a bunch of stray voltage.

The Dirty Little Secret

OK, "recession" aside, perhaps the three most oft-mentioned words in business and communications circles last year (and now this year) are "mobile," and "social media.' 

We've discussed both phenomena in this space, and I can promise some powerful data from our Tech Poll VI which we're wrapping up as this blog posts. 

Social media has become a mega-force because it changes the way we communicate with one another.  If you think about it, for decades and decades, people simply picked up the phone, wrote a letter (or sent a fax), or struck up a live conversation.  That's how people did business with one another.

Then the Internet came along, and we started emailing information.  Later, texting on mobile devices became shorthand for conversation.

But it has been the advent of social media, popularized first by MySpace, and now totally dominated by Facebook that has reinvented the way we interact with one another.  And Twitter is using some of the same principles to become a force in social media.

At the same time, there is no shortage of social media "experts," more than happy to advise businesses on the best way to utilize these new tools.  And caught in the middle are traditional advertising agencies, struggling to come across as hip, but often tethered to their traditional media roots.  When you have been proficient for decades at designing and creating campaigns for television, radio, and print, the explosion of social media can totally redefine the media plan - and with it, the core focus and staff of the agency itself.

We're all trying to learn and better understand this space, often reading whatever we can get our hands on to better grasp the change.  We were fortunate to have one of President Obama's top advisors, Scott Goodstein, speak at last fall's Summit at the NAB.  And since then, I have made a connection with Alison Circle, who heads up media and social networking for the Columbus (Ohio) Metropolitan Library.  I have truly enjoyed the insights gleaned from both of these new experts in the field.

A recent case study in the "Business" section of The New York Times caught my attention.  It's the story of a new high-end startup - EPC Cigar - and the media choices they made in launching their new brand.  They had a $300,000 budget with lots of options in front of them:  taxi tops in New York City, TV ads on channels like Comedy Central, Spike, and Vh1, radio in NYC, Chicago, and L.A., and print ads in publications like The Wall Street Journal, Yachting, Golf Digest, Wine Spectator and Cigar Aficionado.

Instead, EPC Cigar went with their agency's choice and opted for a social media campaign that mostly uses website resources, Facebook, and Twitter.  This campaign only chewed up $40K, allowing them to divvy up the rest on trade shows, events, point of sales material, and some traditional media.  Part of their aversion to going the "old media" route was a belief they could get more bang for their buck with social media.

The company's main spokespeople are also the owners - Ernesto Perez-Carrillo, Jr. and Ernesto Perez-Carrillo III - and they are directly involved with maintaining the company's Facebook and Twitter presence.  

When the article was written in late February, EPC Cigar had garnered 700 Facebook fans and 250 users following their tweets on Twitter.  (Since the Times article appeared and I wrote this blog a few days later, they picked up another 700 fans.)

Now this doesn't strike me as great results.  Understanding that this is a premium brand that is aimed for a well-heeled male consumer, I picked WCSX here in Detroit - and they have twice the number of Facebook fans.  So what does that tell you? 

In an effort to put these case studies in perspective, The Times sought out opinions from a panel of experts, some of whom expressed disappointment at EPC Cigar's small numbers of fans and followers. 

As Donna Novitsky, CEO of BigTent pointed out, "The Facebook fan and Twitter follower numbers are extremely low — we would want to see tens of thousands, at least.  It is likely that cigar smokers and would-be cigar smokers are not the most active social media users.  It is also possible that avid social media users do not smoke $13 cigars.  Plus, the dirty little secret of viral marketing campaigns on social media is that it often takes a lot of traditional media marketing to get them started.”

That's a "dirty little secret" that every radio rep should be telling clients who are enamored with the "efficiency" of using only social media tools for branding and sales.  Traditional media still delivers the big numbers for new media monsters from Apple to Microsoft to Droid.

And there's a good reason why.

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.

We're #1

One of the lessons of the new media world is how category leaders don't own the franchise, and dominance is far from guaranteed.  

But in the Internet world, the pace is considerably quicker.  Today's leaders are tomorrow's losers or also-rans.  And reversals of fortune can happen fast.

Consider MySpace, which Rupert Murdoch bought for $580 million.  Today, it has been totally eclipsed by Facebook, and while social networking is white hot, MySpace is yesterday's news.  Murdoch could not get anywhere near what he paid for MySpace, a one-time leader that has seen its dominance rapidly deteriorate in the past year.

Then there's Yahoo.  Remember that before Google, that's the service that most of used for various portals and search (along with Lycos and others).  Now that Google owns the world, Yahoo is left to try to market its way out of this mess.  And they're not doing a great job of it because all the TV advertising in the world isn't going to change the minds of consumers.  They know what they know, and all the glitz and glamour of Yahoo's newest effort is just a bunch of marketing noise. 

<CLICK HERE TO WATCH YAHOO TV SPOT>

So, what does this mean for your company or your brand?  Consumers are all driving much faster than 55 these days, making their way through products, gadgets, restaurants, and brands.  To help the filtering process, they have more and better evaluative tools, from online reviews to social networks to good old word of mouth.  If a new product or service does not make a good impression, consumers move on.  If they've been an existing customer of a brand, but recent experiences have been underwhelming, they don't hang around for long. 

If your company has been mailing it in, not researching the target, and just hoping that your customer base will simply continue buying your products because they always have, think again.  Even in a tough economy where resources are tight, service, quality, and innovation have to do more than hit the minimum standards. 

More than ever, brands have to earn their stripes every day.  They have to invent, morph, and change with the times.  Wal-Mart's book pricing attack on Amazon's dominance is another reminder that leaders don't get a free pass. 

An old Ziebart campaign reminded us that "Rust never sleeps."  And it is true that when erosion sets in, it's tough to stop the bleeding.  "Trust never sleeps" either, and stations cannot take their relationships with listeners for granted.

Brands that don't keep pace, that don't strive to innovate and improve, and that don't recognize that there are no laurels to rest on may find it even rougher sledding ahead.

The 8/85 Rule

A research update for comScore's "Natural Born Clickers" study from a study first conducted two years ago reveals some alarming stats for Internet-focused advertisers.  While banner and display ads are ubiquitous on websites all over the Internet, the percentage of "clickers" is precipitously falling.

In the 2007 study, about one-third (32%) of Internet users clicked on ads; in their updated March '09 study, it's down to an alarming 16%.

That translates to 8% of Internet users accounting for 85% of all clicks.  So what does that tell us about the efficacy of Internet advertising in 2009?

First, Internet advertising is missing a whole lot of web users.  Campaigns that are focused on clicks are off-target in reaching a mass appeal Internet audience.

Second, the click-through as an evaluative measure is insufficient in measuring campaign effectiveness.   comScore talks about the value of web advertising in overall brand "lift" - whether consumers visit a brand's site, buy products offline, etc.  

Finally, Internet-only advertising is myopic in its approach.  A web campaign is not sufficient to move the sales needle. 

The drop in clicks is real, and that underscores the importance of multi-platform, integrated advertising programs for retailers and businesses - and not just committing the lion's share of ad dollars online.

There's a lot more to advertising, marketing, and branding than click-throughs.

On Target - Update

A couple of months ago, this blog drew your attention to a great full-page ad run by Target, asking for consumer feedback.  The headline was "Tell us what more we can do for you."  At the time, we applauded this effort, but also qualified our praise with the hope that Target would follow-up the ad with bona fide action steps.

We call it "research as marketing" - marrying research initiatives with marketing solutions.  In short, ask for feedback, analyze the results, craft solutions, and then promote the actions that were directly attributable to the questions. 

And Target has done just that.  The follow-up double-truck ad is titled, "You asked for more.  Here goes."  And on the second page, Target shows consumer problems/complaints, followed by their solutions.

So, the "You said" part reads: "You could do a much better job of replenishing your stock, especially in food."

And the follow-up "What we're doing" reads: "To better meet our guests' wants and needs, we're making improvements to our replenishment methods.  Specifically, in the refrigerator/freezer cases, product is being filled every hour - directly from the truck whenever possible."

The ad includes four other feedback/action examples, reinforcing the notion that Target is responsive to the concerns of its "clients."  In this way, consumers feel like they "own" these improvements, rather than the typical corporate top-down policies.  

Any company could and should do the same, because it's not as if businesses aren't doing research.  Web polls among email databases, and even pricier perceptual studies all offer opportunities for companies to derive greater value from their research dollars.

This is not the time for quiet, subtle changes that we hope consumers will notice.  There's so much advertising and media noise that it's imperative that companies "advertise" its changes and improvements, especially to a consuming public that likely questions whether companies really care.  

Sure, there's some potential downside risk in admitting a weakness or an area that needs improving.  But as Target is showing in this series of ads, owning a problem and then solving it is powerful marketing.  And you're sure not seeing anything similar from K-Mart, Nordstrom's, or Macy's. 

Right on Target. 

By the way, this expensive campaign, full-page, national print campaign in USA Today only elicited 627 email responses.

On Target

In a recent Sunday edition of The New York Times was a full page ad for Target, asking this simple question:

Tell us what more we can do for you.

Customers are encouraged to send Target an email, and they'll receive a timely response.

Does it get any more simple than this?  A basic question about how an already successful retailing giant can improve the customer experience.  As we have learned over the years with our own database survey work, research is marketing.  The very act of asking for a consumer opinion is almost always perceived as a positive.  

And this type of consumer campaign can help expand Target's reach, while converting fans to evangelists.  At Jacobs Strategies, we regularly utilize the Net Promoter scaling into nearly all the research studies that we conduct - especially the fan-based web polls.  In a very simple question, it identifies "promoters" - those who will willingly sing a product's praises to others, while recommending it to them.  The Target ad can accomplish the same thing, while strengthening the bond with current customers. 

Oftentimes, stations ask us how they can expand their databases - without marketing or contest dollars.  But if you think about it, the types of customers who sign up for your email club based on the bribe of winning something are likely to be very different from those who join up because they are interested in helping make you a better product.

A simple campaign - like Target's - run on your website - could be just the fan/database burst you need.  But be prepared to follow up your initiative with valid, timely, and meaningful responses.  And be prepared to serve up some solutions.  My bet - based on moderating hundreds and hundreds of focus groups over the years - is that you'd actually come away with some good ideas.  You can bet that before Target crafted their campaign, they made sure they had a back end in place, to ensure that suggestions would be properly handled and responded to.  And some of the best will more than likely be put into action. 

Maybe this is another reason why K-Mart and other retailers are no longer in the same league as Target.  Connecting with consumers, especially during a time when companies and institutions are being questioned on a daily basis isn't just smart - it's good business.

Coup(on) D'Etat

Excuse my French, but as our research at Jacobs Strategies has been showing for months, it IS the economy, stupid.  Between our most recent Technology Poll, and the ongoing focus groups that we've been conducting, we continue to see online coupons rise in value - to consumers.

Now, a new study from Coupons.com shows that entertainment-oriented coupons have jumped in usage from #6 to #3, as consumers crave value on their leisure time activity.  As consumers struggle to make those tough decisions on where to eat, which concerts they can afford, and what necessities they might buy, any company can come to the rescue with great coupon deals OR free entertainment and events.  It's not difficult to be a hero in this environment.

 

And a recent Simmons Market Research study shows that more than 40 million Americans print online coupons, which is a jump from 20% last year.  Plus, consumers who only use online coupons saw their usage rise 46%.  I'd call that a trend. 

Again, a perfect marriage for advertisers and consumers.  And it's all hyper-local.  If you help out customers during this tough time, you can help create connections they'll remember for years.

Presidential Emails

Jordan Ayan, CEO of SubscriberMail, has written a great article about where the Obama and McCain campaigns are going wrong when it comes to their database marketing techniques.  Obama gets the lion's share of credit on his use of the Internet to raise money and aggregate supporters, but Ayan's criticisms of both him and McCain are on-point.  Any radio station programmers could easily take away some great lessons from his observations, which I've summarized in today's post:

Inconsistent "from" addresses - Ayan notes that while the campaigns often use "Barack" or "John" when sending out emails, they also use unrecognizable names, too.  As he points out, "Candidates' names are their brand."  Using the celebrity of your airstaff is a key to getting attention and impacting open rates, instead of a generic station address.

Targeting - Ayan complains that once you sign-up, the campaigns don't gather any additional data to target later messages.  Radio stations are universally guilty of this, missing a great opportunity to hit fans of bands or station personalities with narrower, on-target email messaging.  Instead, email "blasts" tend to send the same missives to everyone in the database.  You end up receiving a lot of email about promotions that you don't care about, leading to more unsubscribes.  Speaking of which...

Unsubscribe problems - It's not easy to stop the email onslaught if you choose to opt out.  The Democrats force you to go to a web page to use a numeric code they email to you, creating a convoluted unsubscribe process (that often doesn't work).  McCain forces you to give a reason when you unsubscribe (Ex: "I'm no longer a McCain supporter").

Building a relationship - Ayan contends that rather than make a real connection with Americans, both campaigns are simply trying to get your vote.  He talks about the lack of welcome messages when signing up, and feels that no matter who wins in November, they probably won't use the power of their email database after the election.

In radio, "the election" takes place every week, whether it's PPM or the diary.  The importance of stations starting, building, and maintaining email relationships is paramount to radio's long-term future.  As we have said many times in this space, email databasing allows stations to create relationships that don't exist with other media or gadgets. 

Radio can learn from the candidates - both good and bad - and become more serious about relationship-building, connections, and engagement.

I'm Not Trine

Today's blog from Jacobs' Keith Cunningham wisely reminds us of the importance of maintaining updated direct mail marketing lists:

What do the following Los Angeles stations, KIIS, KYSR, KOST and MY-FM (formerly KBIG) have in common?  Yes, they're all owned by Clear Channel, but that's not the answer.

It's that I've been consistently receiving direct mail pieces from each station since 2001, for both the spring and fall books.  Kudos to Clear Channel for actually spending money on marketing and not taking the success of brands like KIIS and KOST for granted.  But there is a problem.

For this entire time - more than seven years - they think I'm someone else: a female who's probably between 25 and 44.  In other words, their direct mail lists have been flawed for years, and as a result, they're wasting money on me, as I'm clearly not part of the target.

I'm registered to vote, my driver's license is current, and every other direct mail company seems to know who I am.  So it's only these radio pieces that are misaddressed.  Further, I've NEVER received another piece of mail addressed to this mystery female.  And the previous two tenants who've lived at my address aren't the person they're targeting either.  So we're probably looking at a decade of errors or even more.

Some of you may remember I blogged about this last year, but since I'm looking at yet another stack of Spring ratings book-related direct mail pieces from each station, and more wasted money, I thought I'd take the time to post another reminder.  If your business is engaged in direct mail or telemarketing, make sure your vendor frequently updates their lists to ensure accuracy.   While there's always going to be a certain percentage of "waste" with these programs, most industries face enough obstacles these days.  The last thing you can afford is to waste money on unreliable marketing lists.