"It's like going to a 3D movie without the glasses."
That's from Ian Schafer CEO of Deep Focus.
Some context?
Using the same measurement tools for web as for traditional marketing (how do you define engagement?)
Don't limit the success of your digital marketing by limiting the analysis. It all starts with understanding what purpose your web site plays in your overall marketing strategy.
While that sounds simplistic and encourages a "DUH!" Hang on...
Too many organizations are trying to put everything they know on their sites. It becomes a dumping ground for organization clattertrap. (you used to store this in cardboard boxes in an off-site storage unit.)
Even though they have access to analytic tools -- no one bothers. The plethora of data seems complicated and confusing.
The most difficult barrier to an effective website is content. Once the content is active, it's analysis... what are you doing to integrate your web site into your strategic plan?
Tuesday, March 24, 2009
Where is the party....
I sat in a meeting yesterday afternoon where we were planning a launch... the tag line of the meeting seemed to be "but we have to be careful, we don't have budgets this year."
The alternative to marketing seemed to be social networks... Facebook, Twitter, RSS, My Space....
Let's get serious.
Social networks are not an alternative to serious, ROI driven marketing. First of all, users of social networks are there to play. They are adept at ignoring the nonsense on the side bar and hone in on the latest photo updates.
As a marketer your role is to increase the profit of your company. You do that by strategic marketing, understanding the return on investment of everything you do.
Don't get me wrong... play with social networks, experiment, be there. But understand that there is a cost. Someone has to have the time to play with it.
The most important function of social network sites is to help you understand your customer.
We are in the early days of digital and interactive marketing. Keep your eyes open... it's going to be a fun ride.
The alternative to marketing seemed to be social networks... Facebook, Twitter, RSS, My Space....
Let's get serious.
Social networks are not an alternative to serious, ROI driven marketing. First of all, users of social networks are there to play. They are adept at ignoring the nonsense on the side bar and hone in on the latest photo updates.
As a marketer your role is to increase the profit of your company. You do that by strategic marketing, understanding the return on investment of everything you do.
Don't get me wrong... play with social networks, experiment, be there. But understand that there is a cost. Someone has to have the time to play with it.
The most important function of social network sites is to help you understand your customer.
We are in the early days of digital and interactive marketing. Keep your eyes open... it's going to be a fun ride.
Monday, March 23, 2009
trapped in SEM
Ever think that technology is moving faster than you are?
SEM: Search Engine Marketing.... as defined by Wikipedia (I couldn't resist) is: Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). According to the Search Engine Marketing Professional Organization, SEM methods include: search engine optimization (or SEO), paid placement, contextual advertising, and paid inclusion.[1] Other sources, including the New York Times, define SEM as the practice of buying paid search listings.[2][3]
Eric Clemons, professor of operations and information management at The Wharton School for Management" says that Google's business model is all about "misdirection, or sending customers to Web locations other than the ones for which they are searching...Monetization of misdirection frequently takes the form of charging companies for keywords and threatening to divert their customers to a competitor if they fail to pay adequately for keywords that the customer is likely to use in searches for the companies' products."
So basically he is suggesting that you use your competitor's words and product lines and lead them to your site.
(That's like putting Pepsi in a Coke can and telling the Pepsi drinker that it's all the same.....)
Hard to believe -- I'm thinking that customers would figure that out pretty fast and no longer go to Google to search for the things they want.
We had some stunning success with SEM over Christmas.... what drove the numbers?
The organization's real name.
What sank success?
Using leads that brought searchers to something they weren't expecting.
I'd say that misdirection is poor use of SEM -- but there are still a lot of people out there experimenting without the benefit of knowledge, tests or marketing savvy.
If you want to read the whole article go to http://searchengineland.com/search-ads-are-misdirection-advertising-17028 (You'll have to cut and paste... the add a link button did not add a link....) (I apologize for the language!)
SEM: Search Engine Marketing.... as defined by Wikipedia (I couldn't resist) is: Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). According to the Search Engine Marketing Professional Organization, SEM methods include: search engine optimization (or SEO), paid placement, contextual advertising, and paid inclusion.[1] Other sources, including the New York Times, define SEM as the practice of buying paid search listings.[2][3]
Eric Clemons, professor of operations and information management at The Wharton School for Management" says that Google's business model is all about "misdirection, or sending customers to Web locations other than the ones for which they are searching...Monetization of misdirection frequently takes the form of charging companies for keywords and threatening to divert their customers to a competitor if they fail to pay adequately for keywords that the customer is likely to use in searches for the companies' products."
So basically he is suggesting that you use your competitor's words and product lines and lead them to your site.
(That's like putting Pepsi in a Coke can and telling the Pepsi drinker that it's all the same.....)
Hard to believe -- I'm thinking that customers would figure that out pretty fast and no longer go to Google to search for the things they want.
We had some stunning success with SEM over Christmas.... what drove the numbers?
The organization's real name.
What sank success?
Using leads that brought searchers to something they weren't expecting.
I'd say that misdirection is poor use of SEM -- but there are still a lot of people out there experimenting without the benefit of knowledge, tests or marketing savvy.
If you want to read the whole article go to http://searchengineland.com/search-ads-are-misdirection-advertising-17028 (You'll have to cut and paste... the add a link button did not add a link....) (I apologize for the language!)
Friday, March 20, 2009
OK -- not trapped...
The history of advertising parallels the history of competition. We advertise, market, fund raise to gain attention in order to promote our product. It's really that simple -- the more people that hear about our product, service or mission, the more will come alongside.
What is confusing the market today (and it has been confused before) is the complexity of channels. Intuitively we believe that integration will optimize results, but we have not yet truly realized the advantage of integration between brand and direct.
It's easier for a campaign. TV drives to web or phone... but how about web driving to TV? Or radio to print? Or radio and web to TV and print?
Ultimately our budgets prevent solid integration -- we simply can't afford to use all channels.
So we need to choose the channels that serve us best.
What is confusing the market today (and it has been confused before) is the complexity of channels. Intuitively we believe that integration will optimize results, but we have not yet truly realized the advantage of integration between brand and direct.
It's easier for a campaign. TV drives to web or phone... but how about web driving to TV? Or radio to print? Or radio and web to TV and print?
Ultimately our budgets prevent solid integration -- we simply can't afford to use all channels.
So we need to choose the channels that serve us best.
Thursday, March 19, 2009
Are we trapped?
When it comes to tackling digital media, agencies and brands are still too locked into traditional ways of doing business to exploit the full potential of advertising and marketing online.
Lots of controversy on the ability of marketers to integrate between brand, direct response and interactive vehicles.
It's a challenge.... how do we integrate vehicles, maximize our ROI and spend in a downturn?
Lots of controversy on the ability of marketers to integrate between brand, direct response and interactive vehicles.
It's a challenge.... how do we integrate vehicles, maximize our ROI and spend in a downturn?
Tuesday, January 27, 2009
2009....
OK -- I have already missed my opportunity for New Year's Resolutions -- dashed the easy entry to the year with observations and predictions. But we are in a new world, a new economy, a new mindset. Google laid off... Chrysler is partnering with Fiat... Heinz stocks are on the rise and Linens and Things collapsed.
Layoffs are rampant. Companies are hesitant to expand and are tightening the reins to prepare for a longer term recession. Canadians receive a budget today; Americans are hoping for a new president to innovate and create.
Major gift donors are will be hesitant -- they've taken a big hit to their investments. Middle and mass donors are going to be careful. The biggest change is going to be to a return of values. You already saw it during the holiday season where people were looking for gift ideas that were filled with meaning rather than cost.
The return to meaning is critical for non-profits. People will be looking for inspiration to do something beyond their own physical reach. Non-profits help ordinary people stretch their arms to reach beyond themselves.
Layoffs are rampant. Companies are hesitant to expand and are tightening the reins to prepare for a longer term recession. Canadians receive a budget today; Americans are hoping for a new president to innovate and create.
Major gift donors are will be hesitant -- they've taken a big hit to their investments. Middle and mass donors are going to be careful. The biggest change is going to be to a return of values. You already saw it during the holiday season where people were looking for gift ideas that were filled with meaning rather than cost.
The return to meaning is critical for non-profits. People will be looking for inspiration to do something beyond their own physical reach. Non-profits help ordinary people stretch their arms to reach beyond themselves.
Friday, December 19, 2008
Growing in a new economy
The starting point of many conversations over the past few weeks has been: how has the recession affected your revenue growth. Our clients are experiencing the tension of tightened budgets.
We're concerned. The rapid rise and then plummet of the Canadian dollar significantly impacts corporations and organizations that trade in US dollars. For some the low dollar is advantageous; for others it plays havoc with the bottom line. The overall consumer caution is causing concern. The chaos of the markets have decreased available investment funds.
A flurry of writing from fund raising professionals indicates the breadth of the impact. While some of our clients have experienced a gap between budgeted revenue and actual revenue, most of them have increased in overall revenue from year to year. Some have fell short of particularly aggressive budgets, but gained 10 - 15% over 2007.
Non-profits dependent on government and foundation donations will very likely experience declines in their annual revenue. Small non-profits that lack a diversified donor base and are dependent on a few major revenue sources will also struggle. But organizations true to their mission, with strong relationships to a diverse group of donors and supporters should experience consistent giving and may even experience some rise in their giving. Faith-based non-profits may also experience a rise in giving, especially if they emphasize their core mission.
In my research and from client experience, I have put together 7 foundational principals that will help you weather the storm:
1. Make investment oriented business decisions. I know, that sounds simplistic. But let me explain. Cut out overhead costs that do not add growth to your business. Retain budget lines to acquire new donors and serve loyal donors. Negotiate better terms and invest less for greater impact. With tightened marketing budgets, the climate is warm for negotiation.
2. Build relationships with your donors. Increase your donor engagement and service opportunities -- make it easy for your donors to choose you over other agencies. In downturns, the market is incredibly competitive -- it`s a buyer`s market and the service they receive will impact their long term purchasing and giving decisions.
3. Innovate and diversify. Organizations dependent on one form of marketing or fund raising are in a precarious situation. While integration and diversification increases costs -- it also increases revenue. Look for creative ways to tell your story. Don`t produce a newsletter because all of your competitors produce a newsletter. Listen to your agency. They see the numbers of other clients. While the numbers are proprietary -- the agency can identify trends and increase your effectiveness by applying those trends to your marketing strategies.
4. Track results. Use your data. If you are not tracking well -- put the pieces in place to track. Your data tells the truth. Phone calls from customers and donors do not -- they tell a tiny fraction of the story. Compare anecdotal comments to actual results to make decisions. When planning new campaigns and media buys, data is essential to make wise buying decisions. Use web analytics to understand how people are using your web site. It will give you a lot of insight to use for other marketing ventures.
5. Concentrate on Net Income and not ROI.
Our data intelligence allows us to segment tightly -- but be very, very careful. While higher response rates increase overall return on investment, it will also decrease overall net revenue. Focus on raising money. To help get your mind around this, consider two "a-thon" events. In 2006 an organization spent $300,000 and raised $1.2 million -- with a 4 to 1 return on investment and $900,000 towards their cause. In 2007 they spent $1,000,000 and raised $3,000,000 -- the 3 to 1 return on investment did not meet the traditional 80/20 -- but the organization contributed $2.1 million to the cause -- $1.2 more than the year before. While the return on investment was less, the monies contributed to program were far greater.
6. Do not stop acquisition efforts.
Acquisition is costly. Not investing into acquisition is much more costly. The effect of the lack of acquiring new donors will continue for many years, multiplying the effect of the loss of income.
7. Streamline messaging, emphasizing your core mission. Now is the time to get back to basics. Make sure your donors and supporters fully understand your core mission and inspire them to join you in fulfilling it. Focus on high profile projects and goals, giving donors a clear understanding of your work.
I wish you a very Merry Christmas... rest well so that you will be ready to prepare strategies and tactics that will help grow your organization in the New Year.
We're concerned. The rapid rise and then plummet of the Canadian dollar significantly impacts corporations and organizations that trade in US dollars. For some the low dollar is advantageous; for others it plays havoc with the bottom line. The overall consumer caution is causing concern. The chaos of the markets have decreased available investment funds.
A flurry of writing from fund raising professionals indicates the breadth of the impact. While some of our clients have experienced a gap between budgeted revenue and actual revenue, most of them have increased in overall revenue from year to year. Some have fell short of particularly aggressive budgets, but gained 10 - 15% over 2007.
Non-profits dependent on government and foundation donations will very likely experience declines in their annual revenue. Small non-profits that lack a diversified donor base and are dependent on a few major revenue sources will also struggle. But organizations true to their mission, with strong relationships to a diverse group of donors and supporters should experience consistent giving and may even experience some rise in their giving. Faith-based non-profits may also experience a rise in giving, especially if they emphasize their core mission.
In my research and from client experience, I have put together 7 foundational principals that will help you weather the storm:
1. Make investment oriented business decisions. I know, that sounds simplistic. But let me explain. Cut out overhead costs that do not add growth to your business. Retain budget lines to acquire new donors and serve loyal donors. Negotiate better terms and invest less for greater impact. With tightened marketing budgets, the climate is warm for negotiation.
2. Build relationships with your donors. Increase your donor engagement and service opportunities -- make it easy for your donors to choose you over other agencies. In downturns, the market is incredibly competitive -- it`s a buyer`s market and the service they receive will impact their long term purchasing and giving decisions.
3. Innovate and diversify. Organizations dependent on one form of marketing or fund raising are in a precarious situation. While integration and diversification increases costs -- it also increases revenue. Look for creative ways to tell your story. Don`t produce a newsletter because all of your competitors produce a newsletter. Listen to your agency. They see the numbers of other clients. While the numbers are proprietary -- the agency can identify trends and increase your effectiveness by applying those trends to your marketing strategies.
4. Track results. Use your data. If you are not tracking well -- put the pieces in place to track. Your data tells the truth. Phone calls from customers and donors do not -- they tell a tiny fraction of the story. Compare anecdotal comments to actual results to make decisions. When planning new campaigns and media buys, data is essential to make wise buying decisions. Use web analytics to understand how people are using your web site. It will give you a lot of insight to use for other marketing ventures.
5. Concentrate on Net Income and not ROI.
Our data intelligence allows us to segment tightly -- but be very, very careful. While higher response rates increase overall return on investment, it will also decrease overall net revenue. Focus on raising money. To help get your mind around this, consider two "a-thon" events. In 2006 an organization spent $300,000 and raised $1.2 million -- with a 4 to 1 return on investment and $900,000 towards their cause. In 2007 they spent $1,000,000 and raised $3,000,000 -- the 3 to 1 return on investment did not meet the traditional 80/20 -- but the organization contributed $2.1 million to the cause -- $1.2 more than the year before. While the return on investment was less, the monies contributed to program were far greater.
6. Do not stop acquisition efforts.
Acquisition is costly. Not investing into acquisition is much more costly. The effect of the lack of acquiring new donors will continue for many years, multiplying the effect of the loss of income.
7. Streamline messaging, emphasizing your core mission. Now is the time to get back to basics. Make sure your donors and supporters fully understand your core mission and inspire them to join you in fulfilling it. Focus on high profile projects and goals, giving donors a clear understanding of your work.
I wish you a very Merry Christmas... rest well so that you will be ready to prepare strategies and tactics that will help grow your organization in the New Year.
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