Good Content That Isn’t Found Doesn’t Matter

Good Content - Shared

Content marketing drives search engine optimization (SEO).  Developing content is relatively easy, but it simply does not matter if it cannot be found by your target audience.  And, if your content is found and found NOT good, it may not matter.

Good content is (highly) rated
In the 1970s and much of the 1980s, we watched whatever was on television—good or bad.  We did not have much choice.  Today, consumers have many choices, including unplugging completely or turning to another device.  This is exactly why we have come to a place where much of the content we have access to is rated.  If we are looking for a movie on Netflix, we check out how it’s rated.  If we search for a book on Amazon, we check out its rating.  Developing content that is rated differentiates the good from the bad and the ugly.

Good content is shared
Shared content is a practical evolution of rated content.  Rated content could come from any source, someone we know or someone we don’t know.  But shared content usually comes from someone within our circle.  When a Facebook friend shares content on our timeline, we value that content a bit more.  So, when developing content , remember that shareable content is more likely to be consumed.

Good content trends
For sure, “good content” is relative.  However, in the spirit of understanding that “good content” is not good until it’s read or viewed, we must acknowledge that good content trends.  Trending content is crowdsourced content.  What we collectively read and watch becomes good content.

You can surely create excellent content that is never read.  It will do nothing for awareness, nothing for growth and nothing for anyone else.  It’s like the tree that falls in the forest when no one is there to hear it.  Did it make a sound?  Doesn’t matter.  Turn your content into something that matters.  Get it ranked.  Find ways to share it.

Moving Beyond Loyalty to Customer Advocacy

Beyond Loyalty to Advocacy

The average U.S. household participates in nearly 22 loyalty programs every year.  However, that does not mean that householders are, in fact, loyal to these brands.  Repeat purchases rather than just loyalty program sign-ups ought to be the core metric for loyalty.  How many widgets a person buys determines how loyal they are to the widget maker.  But, in our digitally-charged economy, companies should aspire to lead customers beyond loyalty to advocacy.

“They generate word of mouth advertising.  They like your social pages.  They share information on your brand on their own social pages.  They refer other business your way.  And, they generate more revenue…”

Customer Advocates Improve Your Top and Bottom Line

A customer advocate not only makes more purchases but also tells others about their positive experience with your brand.  They generate word of mouth advertising.  They like your social pages.  They share information on your brand on their own social pages.  They refer other business your way.  And, they generate more revenue—from their direct purchases and influenced purchases.  All of this activity reduces your acquisition costs, which improves the bottom line.

There are some categories that lend themselves to higher levels of customer advocacy.  For instance, new car owners are more likely than toothpaste buyers to be passionate about their purchases.  However, when new features are introduced—even in toothpaste, a campaign aimed at increasing customer advocacy can really help a business improve the efficiency of the marketing spend.

Customer Advocacy Should be Nurtured

We have all seen the social posts that say “The first person to tweet ‘#LoveXYZProduct’ gets a $25 gift card.”  These ads are promotions but they do not increase customer advocacy.  They are a temporary, one-time lift in awareness that is not likely to be sustainable.

Advocacy Through Social Media

Customer advocacy in social media should be initiated by the customer BUT making it easy for the customer to share information can increase advocacy efforts.  Include social buttons on your online product pages.  Be sure your social handles are included on product packaging that reaches the customer.  In mobile advertising, use hashtags or shareable links in your creative.  Take advantage of very opportunity to help the customer share your message.

Advocacy Through the Product Experience

Many customer advocates will share their experience in interacting with the product.  Marketers need to contemplate this in the delivery, use and ownership of the product.  To encourage customer advocacy:

  • Seamlessly integrate your product into the customer’s day-to-day
  • Make the product easy to buy and use
  • Deliver unexpected (and infrequent) surprises

Loyal customers generate revenue through their own purchases.  Customer advocates generate revenue through their own purchases and by influencing the purchases of others.  Business leaders would be well-served to identify and nurture customer advocates among their buying population.

Can Rebranding Lead to Sales Growth?

New Brand

In today’s world of the internet of everything and big data, every executive and every business owner is more concerned than ever about the ROI of every activity.  Marketing leaders have espoused the benefits of a strong brand for years.  Recently, more marketers have been asked to justify their activities, including brand-building efforts.  Business leaders want to know:  What return can I get from a branding or rebranding campaign?

First, let’s examine what rebranding is not.  There are components of rebranding that will, as standalone activities, likely have little or no effect on sales.

  • Rebranding is not simply a logo change.  And, a logo change in itself is not likely to increase sales.
  • Rebranding is not just a name change.  In fact, a name change may have a negative impact on sales, depending on the strength of your existing brand.
  • Rebranding is not just creating a new tagline.  Creating a new tagline is not likely to have an immediate impact on sales either.

When, then, does rebranding drive sales?

When more relevant messaging is delivered to the target audience.  Delivering the right messaging to the right audience is the core success factor of any rebranding campaign.  Your goal should be to increase awareness with your target market.  Of course, this requires knowing who your potential buyers are.  It also requires crafting a message that will make your product or service preferred over the competition.

When your media budget increases to support a rebranding campaign.  It is important to note when other changes that are implemented with a rebranding campaign.  Oftentimes, a rebranding campaign is a result of an increased marketing budget which includes other components, like increased media spend.  Be careful not to attribute an increase in sales to one campaign component without contemplating how all components may have impacted results.

When quality SEO is implemented to counter a decline in website traffic.  Google still owns the online search market and many online websites are still recovering from the so called Google Penguin update of 2012.  With this update to their search algorithm, Google closed the loop on SEO practices that artificially increased page rankings by gaming the prior search algorithm.  As a result, many websites have gone through a “rebranding” in an attempt to increase traffic.  The effort, accompanied by quality SEO (and often a brand new website and URL), has been successful for many.

The good news is that with the right components, a rebranding campaign will increase sales.  However, there is no magic formula for such and the process may be iterative.  It is important to have a clear strategy and a sound measurement tools to build an effective rebranding effort.

TV Advertising Is no Longer the Holy Grail

TV advertising

Fragmentation in advertising is good for small businesses as it gives such businesses an opportunity to compete effectively.  Where small businesses were previously left out of advertising on video-rich platforms like television, YouTube has created opportunity.

Nearly 50% of U.S. households now have digital video recorders (DVRs), which have resulted in fewer television commercials being watched, but the proliferation of DVRs is not the only thing causing the shift in ad dollars from television to YouTube.  Here are four other drivers of this shift that small business owners need to know to take advantage of the increasingly fragmented advertising market.

  • YouTube advertising is more targeted than TV advertising.  Because audiences are so broad on television, TV advertisers end up spending ad dollars on prospects that are not their target.  With YouTube, advertisers can specifically target subscribers by age, gender, location and even interest.  And, they only pay when their ad is watched.
  • YouTube advertising is more measurable than TV advertising.  An advertiser just cannot know with certainty if a specific audience was reached on television.  Nielsen’s use of a representative sample of the population (measured through people meters) is far less sophisticated than the viewer analytics available to advertisers on YouTube.
  • Smartphones rule.  YouTube audiences are growing while television audiences are shrinking.  YouTube is among the top ten most frequently used smartphone apps.  How many Cord cutters and Cord nevers have a smartphone?  A majority.  In fact, these individuals are more likely than the general population to use smartphones.  So, YouTube advertisers have an opportunity to reach an audience that is unreachable for TV advertisers.
  • YouTube advertising is more affordable than TV advertising.  Most small business don’t dare to dream of using television advertising to get the word out about their products.  By its very definition, broadcast advertising gets audio or video content out to a mass audience.  Mass audiences cost mass dollars.  Marketers can more effectively spend more modest advertising budgets on YouTube, where costs can be controlled on a daily basis.

While it’s great to have a budget large enough to warrant television advertising, it is not the only place to build brands today.  Advertisers with modest budgets can deliver targeted, measurable ads online and reach an audience that is not even accessible on television.  TV is no longer the Holy Grail of advertising…and that’s good news for small business owners.

Social media is not “free” marketing

Social Media - Not Free Marketing

Many business leaders, especially those with limited marketing budgets, think of social media as a free way to deliver their brand’s message in the marketplace.  While it is true that the barriers to getting into the social media fray are low, there are costs to developing successful social media campaigns.

This post is not meant to deter any business from setting up a social media account.  By all means, pick a username, set up your profile and post a few logos and pictures, but be sure that you have considered the following:

  1. You will need to develop content regularly.  Simply developing an account and linking your website to your social media account is a futile exercise.  If you do not have a plan to deliver content—that is, posts, pictures, videos, infographics, etc.—regularly, you need to rethink your social media strategy.  The point of the social media account is to initiate a relationship with your target audience, which can only be done through regular communication.
  2. You may need multiple accounts.  Consider why you are setting up a social media account.  Are you trying to attract new customers?  Do you want to build brand awareness of a specific product?  Are you ready to answer customer questions?  If you search for Amazon on Twitter, you will find @amazon, @amazonkindle, @amazonvideo, @amazonassociate, @amazonappstore and @amazonhelp, among several other Amazon accounts.  Each one serves a different market need.  It is not likely that you will need as many accounts as Amazon, but it may be desirable to give customers a social service “line” that is distinct from your primary brand-building account.
  3. You should have an integrated marketing plan.  Your social media marketing strategy should be one component of your overall marketing strategy.  Think of it as an extension of what you do in other marketing channels and be sure your have consistent messaging across media.
  4. You must measure your social media efforts.  Given the time spent doing #1 through #3 above, you will want to be sure that there is value in your social media activity.  Are you getting enough views of posts to efficiently build awareness?  Are you reaching your target audience?  How has your customer satisfaction changed as a result of creating a social service account?

All of these things will affect the marketing budget but there are a few things you can do to mitigate the above costs.  For instance, there are tools such as Hootsuite and Tweetdeck that increase the efficiency of managing social media accounts.  These solutions allow users to manage multiple accounts from a single platform.  They also allow users to schedule posts for a future day or time.  So, executing a social media strategy often becomes less arduous with these tools.

Being selective about which social media platforms you use can also mitigate costs.  It is not likely that you need to be on Facebook and Twitter and Pinterest and LinkedIn and Google+ and Instagram and every other new social media.  Select the platforms that are most relevant to your target customer base and focus on optimizing your presence there.

Consider hiring a social media expert.  It may seem counterintuitive but if you are inefficient because of lack of familiarity with Hootsuite or because you do not have the bandwidth for developing content, it may make sense to hire an expert so that your time can be spent where you add the most value.

Social media is not free but with the right support and tools, it can be an effective and efficient component of the overall marketing strategy.

Marketing Basics Still Apply on Social Media

Marketing Basics - Social Media

Many seasoned marketers are all too eager to leave the social media marketing to younger professionals. The ever-evolving social media space can feel daunting to traditional marketers accustomed to broadcast and print marketing. But while the technology is different, the basic building blocks of marketing still hold true.

When creating a marketing campaign delivered through any media, you must…

  1. Identify your target market. In traditional marketing, we get to know the target market through quantitative or qualitative market research. With social media marketing, we can get to know the target by “listening” on the social media platform. What are customers saying about the product? About what they want? About how they use the product? Same questions, new media.
  2. Create relevant messaging. In traditional marketing, the development of the message can be a very long, intensive process. With social media marketing, the creative development cycle is usually much faster. Some of the most effective social media campaigns will build on current trending topics or hashtags.
  3. Measure your campaign results. With traditional marketing, effectiveness can be measured by reach and frequency. With social media marketing, engagement is king because the platforms are inherently interactive.

Let’s take a few examples of how these marketing fundamentals apply in a social media context.

Oreo seizes social moment at 2013 Super Bowl

Oreo’s 2013 Super Bowl social media campaign spoke to a large audience at the right time. When the lights went out at the Superdome during the 2013 Super Bowl game, Oreo saw an opportunity and tweeted, “You can still dunk in the dark.”

By contributing to an ongoing trending topic, Oreo received nearly 16,000 retweets. The now-famous blackout tweet demonstrates how relevant messaging can reach a targeted audience and ignite viral engagement.

Yeti Coolers engages Facebook fans

Social media can also improve the playing field for lesser known brands. Igloo and Coleman are strong brand names in the cooler market, but the (once) lesser known Yeti now has cooler sales revenue that rivals its competitors. Yeti makes rugged coolers for those who have a passion for outdoor activities. The company’s social media strategy speaks to this audience in their language. On its Facebook page, Yeti regularly shares imagery of its product featured in the fun and adventure of the great outdoors.

The company’s more than 207,000 Facebook fans routinely engage with these posts. In fact, it’s quite common for the company to get 500 likes per Facebook post. That works out to an engagement rate of 0.24%. Compare that to Disney, one of the most recognized brands in the world, which gets about 35,000 likes per Facebook post. Disney has 48.4 million Facebook fans, an engagement rate of 0.07%. Yeti may have a smaller presence, but it is more effectively engaging its audience.

You’ve heard this marketing refrain before: Deliver the right message for the right audience at the right time. It is as relevant today as it has always been.

Social media hasn’t reinvented marketing: If anything, it underscores that the basics of marketing are as valuable as ever.

Can Radio Shack Shrink Its Way to Profit?

Radio Shack - groovy

Radio Shack’s sales dropped 10% between 2013 and 2012, a steeper drop than the 5% decline seen with 2012 calendar year results.  And, operating results were the worse the company has seen in the last five years.  What’s a CEO to do?  On his investor call today, Radio Shack CEO Joe Magnacca announced that the company would close about 25% of its company-owned stores.  How will Radio Shack profitably increase same store sales in 2014?

Can the company shrink its way to profitable growth?

Much of Magnacca’s turnaround strategy focuses on being relevant.  The strategy is on point but can the executive team execute?  As pointed out in its Super Bowl ads, Radio Shack lost its way many years ago.  Consumers and their tastes evolved while Radio Shack stayed the same.  With its new branding campaign (one of Magnacca’s 5-point strategic turnaround initiatives), the company is searching for messaging that is relevant to its target customer.  Another of Magnacca’s strategic initiatives is revamping product assortment.  This effort to reach customers with relevant products is a fine strategy once customers start visiting stores again.  The product initiative can only drive profitable growth if the rebranding strategy is successful at helping store traffic rebound.  And, there is a risk with this new merchandising strategy:  The company intends to promote high margin private label brands.  Clearly, these products must be relevant to new and returning customers.

The strategies appear sound but can the company execute?  Magnacca joined Radio Shack in February 2013.  Calendar year results for 2013 were pitiful.  Critical 4th quarter results missed the mark.  Same store sales experienced an even larger drop in 2013 than 2012.  The strategy isn’t a concern but the track record of operational excellence has yet to materialize.  Magnacca has hired a few new execs to drive change.  We shall soon see if he has the right team to restore life to this once iconic brand.

2014 Super Bowl Ads: the Winners and the Losers

2014 Super Bowl

Ahhhh…the allure of over 100 million viewers.  It would make any deep-pocket, consumer-facing company want to throw their brand in the mix.  At $4 million for a 30-second spot, I expected more from the advertisers.  My quick takes on the 2014 Super Bowl commercials:

What did they do for their brand?

Budweiser is still King.  Puppies, Clydesdales, iconic brand that still has its polish.

Cheerios kept its brand fresh with a memorable commercial, which included an interracial couple—still a rarity in ads despite the blending American population.

Bank of America and U2 kept their respective brands positive with a (RED) donation tie-in.  Free download for a good cause.  Smart.

Radio Shack reminded us that they’re still around, which is good because most of us have forgotten.

The Heinz commercial was memorable.  The Carmax commercial was forgettable.

H&M told us about their David Beckham line.  How can we forget Beckham—with or without his tidy whities.

Auto manufacturers spent the most but were a mixed bag.

Super Bowl ad time is about building brand.  Brand recall is essential and I don’t think most Americans remember which manufacturer had Muppets and which had the Matrix.  Volkswagen did a great job of reminding us that German engineering is keeping their brand at the head of the lifetime-value pack.  Chevrolet entertained with the romancing cows…and subtly reminded us that their trucks have great towing capacity.  Ford’s creative was underwhelming.  I guess Jaguar has more mass appeal now, given the volume cars like the X type and Maserati is pushing down to a more affordable ride with the Ghibli.  The latter two brands are not quite for the average household but they aim to push their brand into more households.

I dare you to recall which brand advertised the Doberman+Chihuahua ad.  (Don’t Google it until you have a guess.)  Funny commercial but for the multi-million dollar price tag, I want you to remember my ad.

New brands need to tie content to their brand.

Squarespace is relatively unknown—before and after the Super Bowl.  Their content should have told us more about what they stand for.  Chobani yogurt did a better job, with the bear looking for “natural ingredients.”  Dannon Oikos introduced humor and was a bit risqué with its ad.  The company got our attention with John Stamos but I think most Americans would be hard-pressed to recall which brand aired this commercial.  SodaStream got a big Hollywood start (Scarlett Johanssen) but their commercial fell flat (pun intended).  Beats is not a new brand but new-ish and they won.  Ellen Degeneres dancing to music.  Stellar!  Stephen Colbert sold some pistachios but for who?

Find Your Target Audience, Map Your Social Strategy

Social media life

No doubt about it.  I’m feeling my age.  I’m now on Facebook, Twitter, Google+, Pinterest, Instagram, Snapchat and, of course, LinkedIn.  Social media is where it’s at…right?  Well, I guess it depends on what “it” is.

Facebook is THE place to catch up on the fabulous lives of all of your friends and acquaintances.  If you don’t have a fabulous life, you don’t post on Facebook.  Or, is it, if you are living your fabulous life, you don’t have time to post on Facebook?  Either way, chances are, someone has invited you in and you’ve at least signed up.  And so…clearly, if you own a consumer-facing business, you need to have a presence on Facebook and you need to get as many likes as you can because Facebook likes beget Facebook likes.  That is, you grow exponentially as you gather your new friend’s friends likes and friends of your new friend’s friends and so on.

Now, Google+ is a powerful social tool.  Great product but because Google showed up later to the social table than Facebook, they have fewer active users.  But, if you have any Google+ products (gmail, an Android, etc.), you WILL be invited to Google+.  Ultimately, the power of Google+ lies in the pace of adoption and user interaction.  Stay tuned…

If you are in to online scrapbooking, Pinterest is for you.  There are lots of users (and the majority are women) sharing lots of images.  Sometimes we’re discussing the fabric of our lives, sometimes it’s what we wish was the fabric of our lives.  It’s really a great forum for sharing with the girls.  “Look, what I found!”  If you’re a business, you really need to have something worth being found (visually) and shared.  Ben Silvermann (CEO of Pinterest) says that the company is piloting advertising on the site.  As an advertiser, expect to create new shareable content to optimize the bang for your buck.

One word about Snapchat.  It makes me feel… well, 40-something.  There are far fewer 40-somethings using Snapchat, which means I have fewer contacts to interact with.  Heck, I felt clumsy just getting the app to work.  Not to mention I was fretting over privacy concerns when the app asked for my mobile phone number.  Somehow I feel better when apps just ask for permission to access all the contacts in my phone.

Well, more to come on the other social media in a future blog.  I’m off to update my social media accounts.

Is Apple’s gadget dominance ending?

Apple - Dominant player

It seems that there have been so many ups and downs at Apple since the departure of Steve Jobs.  The latest of which hit hard today—a 12% drop in the stock price to a 4-month low.  Some proclaim that Apple has lost its edge since Jobs departure.  I, however, appreciate Tim Cook’s management style—at least as an outsider looking in.  And, I think it will be quite some time before Apple loses it’s dominates in the MP3 player, tablet or smartphone market.

Nearly 70% market share in the declining MP3 player market

Now, most would agree that the MP3 player is now a rather mature market.  At this point, the late majority have made at least their first MP3 player purchase.  With nearly 70% market share, Apple dominates this market and will continue to do so (albeit, a shrinking market).

More than 50% market share in the tablet market

By comparison, early adopters are taking the tablet market by storm.  And, many are going for the cheaper, smaller version of the tablet.  This explains why Apple allowed the iPad mini to cannibalize iPad sales.  iPad unit sales were up 48% in Q1 2013 but revenue was only up 22%.  A good guesstimate is that iPads are outselling iPad mini’s by 2:1.  (You can play with the math a bit to see if you come up with something similar.  I assumed the average iPad sale was $450, average iPad mini at $329.)  But even with this cannibalization, Apple continues to dominate the tablet market with over 50% market share.

More than 50% market share in the smartphone market

What about the smartphone market?  iPhones make up 56% of Apple’s revenue and they maintain more than 50% of the smartphone market.  Android devices (and, specifically, Samsung devices) are making a dent.  However, according to the IDC’s forecast of smartphones through 2016, Apple is expected to grow at 18.8%, while the overall smartphone market grows at 18.3%.  This suggests that Apple will maintain its dominance in this category.

Challenges ahead in the sale of songs and videos

Where Apple is probably most threatened is with iTunes.  Amazon recently opened an MP3 store for iPhones and iPods.  Amazon is a data beast.  They will continue to learn quickly from the transactions of the iOS users and there are many, many more songs on Amazon at 99 cents v. 1.29 on iTunes.  Amazon means to squeeze margins and this will put significant pressure on iTunes margins and/or sales.

That said, iTunes is 7% of Apple’s Q4 2013 revenue.  iPhones, iPads and iPods make up 80%.  Apple isn’t likely to lose their lead as #1 in any of these categories in the near future.