Tuesday, December 31, 2013

How TV manufacturers and cable operators can harvest data to provide better content and advertising solutions

It was announced a few weeks back that LG Smart TVs were caught sending data on viewer habits of those using LG sets. There was a mini outrage, including a segment on Fox Business discussing how this was a violation of personal information.

LG says that they had the consent of these people, who have to accept this data collection as a part of the set up when you get the set. I'm not about to offer an opinion on the legalities, but I do find it laughable that LG would stand by this claim, since if you don't accept the collection of data then the TV does not work.

https://www.techdirt.com/articles/20131119/06503625288/lg-smart-tv-caught-collecting-data-files-stored-connected-usb-drives.shtml

Aside from the legalities of the gather, I find possible results for marketing from such data to be very interesting. As the story above points out, LG was using the information to target ads on the TV's home page. That is just the tip of the iceberg, as LG was also siphoning off data and sending it over the internet on all interactions between the owner and the TV.

Fox Business News reported that LG was not using the downloaded information. While I find that hard to imagine, the possibilities from a marketing standpoint are intriguing. By mining the data and determining the viewing habits of their core audience, LG can determine the best networks to buy for promotions. It offers LG, and other smart TV manufacturers a unique snapshot of their current and potential audience.

As profitable as this could be for LG, how about NBC / Comcast? In Comcast's quarterly report from September of this year, they serve nearly 23 million cable customers, nearly 20 million high-speed internet customers and just under 10 million voice customers.

I've searched for information online about how NBC / Comcast might use the data they can collect from cable subscribers to help target advertisers and programming in the future. In the emerging world of data mining to create more targeted marketing messages, I would think the combination of a major TV network with one of the largest cable companies is a mother load of data waiting to be mined and analyzed. This could be a competitive advantage for NBC as they make advertising sales and programming decisions going forward.

Interestingly, about two weeks ago Comcast announced a new partnership with Rhiza For Media on software designed to provide better, more refined analytics on data for advertisers. From the Comcast press release Matt DeAngelis, the senior director of research said, "Rhiza For Media helps us take a wide range of data and present it in an easy-to-understand way, demonstrating the geographic and demographic segmentation capabilities that only spot cable advertising offers."

http://www.comcastspotlight.com/news/Press-Release/Comcast-Spotlight-and-Rhiza-Working-Together-Help-Advertisers-Make-Smarter

Thursday, December 26, 2013

The most memorable advertising of 2013

Christmas is over, and now it is time to start looking back on the year 2013. The good, the bad, the accomplishments and the things still left undone. I hope for you it has been a good, productive year with even better things on the horizon for 2014.

In terms of sales, marketing and advertising for me, 2013 has been a mixed bag. Some very good things, several not so good things and plenty of things still to work on and improve for the new year. So basically, it was a normal year, since I think we can always look back and say those things.

Forbes has come out with a list of the most memorable ads of 2013. This is not to imply that they are the best, just memorable. There are a couple of commercials that are noticeable missing from this list, but also a couple that I would have ranked high on my own list.


Geico is not on this list, and they should be. I admire the creativity that the agency that handles the account (The Martin Agency, www.martinagency.com). They have continued to make memorable ads that consistently go viral. Heck, even yesterday on Christmas Day, I saw posts referencing the camel and hump day commercials. Geico has a winner with the paid advertising they do with these spots, but then they take on a whole new life on their own through viral marketing. The hump day spot (https://www.youtube.com/watch?v=kWBhP0EQ1lA), and to a lesser extent the Eddie Money travel agency spot (https://www.youtube.com/watch?v=PWTgwvh4v1w are two big time winners this past year for being memorable.  

Chrysler Corporation --- They had a great year in developing memorable advertising. To me, the number one spot of last year's Super Bowl was the Dodge Ram truck commercial narrated by the late Paul Harvey. That tribute to the American farmer was heart warming, and a commercial that was perfectly executed.

Dodge scored another big hit in October with their Dodge Durango series of commercials. Possible the complete opposite of Paul Harvey would be Will Ferrell's character Ron Burgundy. Throughout the World Series, Burgundy was doing his straight forward sales pitch for the Dodge Durango truck and making the audience laugh. Evidently, talking about the 0.1 cubic feet of storage in the glove box is a selling point for trucks that no one ever discovered before this year (https://www.youtube.com/watch?v=EyX8cCvJ1kk). It certainly worked though, as Durango truck sales jumped for the month of November by 59%. That is a staggering ROI for the money invested. 

Wednesday, December 18, 2013

Mark Cuban uses newspaper industry as an example on how business must adapt to survive in the future

Friday night has become a 'must see TV night' for me, and I think it would help sales reps around the world if they would do the same. "Shark Tank" on ABC is a great illustration of sales. Assuming you have a good product, you must the details of that product, features, benefits and financials to have a chance. To really succeed, you have to be able to tell a story and present to a group.

There has been many a product on that show that would be mega-hits today, if only the person knew how to present, and to tell a good story. More than one occasion I have showed "Shark Tank" segments for training to my sales team.

While all of the host entrepreneurs on the show have certain charms, to me it is Mark Cuban that makes the show worthwhile. In part, that is due to Cuban reminding me of one of my mentors from a few years ago. Cuban is also a graduate of Indiana University, and still a fan of IU basketball like myself. I have a lot of respect for Cuban, and his background as a self-made businessman that works very hard but can still have fun.

On LinkedIN this week, I came across a Mark Cuban blog from last January directed towards incoming college freshmen. Cuban offered some great advice:  "The smart high school grad no longer just picks a school, borrows money and wings it. Your future depends on your ability to assemble an educational plan that gets you on your path of knowledge and discovery without putting you at risk of attending a school that is doomed to fail, and/or you with a debt heavy balance sheet that prevents you from taking the chances, searching for the opportunities or just being a fuck up for a while."

That quote could easily be directed to media companies, and specifically newspapers. Media companies need to develop a short and long term strategy that puts them on the path of knowledge and discovery for new and emerging marketing / revenue opportunities. In many cases, this is a tough path to follow for many, especially newspaper and radio companies who's balance sheets prevent them from taking chances and searching for the opportunities.

Cuban does target media companies in this blog post, specifically newspapers. Cuban compares the university and college system with the newspaper industry. "The newspaper industry was once deemed indestructible. Then this thing called the internet came along and took away their classified business. The problem wasn't really that their classifieds disappeared. It was more that they had accumulated a ton of debt and had over invested in physical plant and assets that could not adapt to the new digital world."

You can read the entire blog post, titled "Will Your College Go Out of Business Before You Graduate?" at:  http://blogmaverick.com/2013/01/26/will-your-college-go-out-of-business-before-you-graduate/




Monday, December 16, 2013

Craigslist starts charge auto dealers for advertising, giving publishers a chance to regain some classified marketshare

Beleaguered publishers have struggled to find good news when it comes to classified advertising. The change of habits has created new products to sell your house, your dog, your garage sale and your car. Up until recently, that alternative was often free which made it difficult for newspapers to compete.

That has changed, at least for automotive advertising with the announcement that Craigslist will now start charging auto dealers $5 per vehicle for a 30 day listing. I think this is a great opportunity for print and digital publishers to again compete in this portion of traditional classified advertising.

Craigslist made the announcement in late November, though I honestly had not heard about it until recently. The $5 charge was to start on December 3, as the website looks for ways to gain more revenue. Details from Craigslist can be found at http://www.craigslist.org/about/ctd

While all auto dealers used Craigslist for their inventory, it was smaller independents that utilized it the most around where I'm located. It was free and targeted. It worked too, but I think the effectiveness was helped tremendously by no cost aspect.

Traditional and digital publishers need to regroup and plan an strategy to work on the independent auto dealers in their market; especially those that have used Craigslist in the past. Free is a difficult thing to compete against, but the game has change.



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Sunday, December 15, 2013

Pruning away the fake Twitter followers on accounts should be a priority for marketers

Recently, it was announced that Twitter was infested with fake accounts, bots that were bloating followers across the platform. That wasn't really surprising, was it? But for Twitter, trying to go public and prove that they are a player in the advertising and marketing business, this was big news.

Claims vary, but the recent claim that 10% of all accounts are fake was floating out there recently (http://www.nbcnews.com/technology/1-10-twitter-accounts-fake-say-researchers-2D11655362). Twitter, in their filings with the Securities and Exchange Commission projects only 5%.

In newsrooms across the country, there is a competition of sorts to get as many followers online as possible. Publishers compare Facebook numbers, but individual reporters are going head to head with Twitter. These raw numbers are incredibly misleading at times.

The raw numbers don't really matter - audience is what matters. Beyond that, it is the responsiveness of that audience to the message that ultimately matters. What is real, in terms of Twitter's audience, and social media in general?

For Twitter, it might be worth a quick scan of the account to see what is real. http://www.twitteraudit.com will tell you how many of the followers on your account are real.


I get the thumbs up with 94% real, though I'm now feeling the need to go out and prune that alleged 19 fake accounts on my Twitter feed.

My job is to figure out how to harness the audience of all social media, and determine how best to market the products and services of my business partners to the selected audience. The bots and fake accounts certainly make this more difficult, as I try to sell a real audience number and calculate a proper response rate and ROI for the advertiser.

The fakes are not going away. In my opinion, it is the responsibility of the marketing and media company to actively prune the dead branches of that social media tree and insure that the audience on there is as real as can be. Unfortunately, I think some companies are doing just the opposite and are seeking mass audience numbers to look good and are misrepresenting their total reach in a marketplace.

Wednesday, December 11, 2013

Newspapers continue to change their revenue model, leaning more on consumer generated revenue

The random musical soundtrack has had a central theme: change. It started this morning with David Bowie's 70's classic "Changes", "Changes in Latitudes, Changes in Attitudes" from Jimmy Buffett and (for me at least) the most memorable song from the "Jerry Maguire" movie soundtrack "Secret Garden" from Bruce Springsteen. That movie is a great movie on changing how you do business, and about sales.

Then I stumbled across a great article worth sharing about the changes in the newspaper business in 2013. It is definitely worth a read:  http://www.medialifemagazine.com/newspapers-time-fresh-ideas/?goback=%2Egde_157204_member_5816201666843676676#%21

2013 will go down as the year that newspaper companies aggressively went after consumer money. From raising print subscription pricing to raising pay walls, many publishers have helped their bottom line in 2013 from non-advertising sources.

That is a trend that will no doubt continue in 2014. The article for medialifemagazine.com written by Bill Cromwell estimates that one in three online newspapers are now behind a pay wall. By December 2014, I suspect that percentage will be substantially higher.

Newspaper companies are seeing some modest increases in digital revenue. Yet that money that they are bring in the digital door is not keeping up with the money lost through the traditional print door. Cromwell suggests that for every $15 lost in print, newspapers are only gaining $1 in digital revenue. It is very hard to continue with a business model based on that revenue projection.

The revenue projection in 2014 is similar to those predicted in 2013; a decline of 8% in newspaper revenue. While I'm optimistic about beating that projection, I don't expect to see a swing to the positive. I think there will be some political advertising gains in some markets that give newspaper publishers and advertising directors a chance to close that gap.

Saturday, December 7, 2013

Building lasting businesses and brands the way Walt Disney and Jimmy Buffett did it

Some of my earliest memories involve the worlds created by or brought to life by Walt Disney. From the epic family trip in the early 1970's, Winnie the Pooh to Mickey Mouse, like so many people these iconic places and characters are a part of my childhood memories.

The night before the arrival of my son, there was no mad dash to the store to get the latest Disney movie or stuffed animal. For me, it was a trip to the music store to purchase the Jimmy Buffett CD album of kids songs. In my adult life, the worlds and the characters brought to life by Jimmy Buffett have become iconic and a big part of my memories.

For my son, the two worlds of Disney and Buffett has blended together into his unique memory base for him to carry on. Disney and Buffett would not seem like they have much in common with one another. Disney created an idealistic view of America that is as wholesome as mom's and apple pie. Buffett wrote and sings the classic song "Why Don't We Get Drunk and Screw". Buffett has also expressed is opinions about Disney theme parks on stage and in his book "A Salty Piece of Land". While there are definitely things that separate them, I particularly see some great similarities in the genius of the two men; Walt Disney and Jimmy Buffett.

This past week marked Walt's 112th birthday. Jimmy's 67th birthday is coming up later this month. I look up to both of these individuals as two of the greatest marketing people ever. That is an accolade that I don't offer up to just anyone. But if you think about it, few individuals come along and transform how we act, think, spend money and do business. Disney and Buffett conquered entertainment, and then set their sights on expanding across multiple business lines.

Disney took success from a modest movie "Steamboat Willie" and created a media empire. As he liked to famously remind everyone, "It all started with a mouse". Thanks to the mouse, his company created a multi-billion dollar company of movies, music, TV shows (and later networks), radio stations (and later networks), toys, theme parks, hotels, resorts, cruise ships, restaurants and so on.

Buffett's first hit song was actually "Come Monday", but it was the classic "Margaritaville" that started as the basis for his empire. His first restaurant, ironically at rival theme park Universal Studios in Orlando has launched into a restaurant chain across the world. Additionally, Buffett's influence can be found in a string of best selling books, movies, resorts, casinos, clothing and a full line of food and liquor products to just name a few things.

Both of these artists are very talented. But I could name you a lot of other artists that are more talented than these two. Certainly, there is a certain amount of luck that both experienced over the years. Buffett details in song several instances where he had to steal food to survive during his lean years. Disney's story similarly shows how he struggled to make payroll during those early years.

As I reflect on these two, there are several areas that I think tells the tale as to how they survived. Among them are:

  1. Focus on the customer / fan
  2. Persistence in the face of adversity with a huge work ethic to back it up
  3. Surrounding themselves with the best available talent
Go to a Disney theme park, and the vision of Walt Disney is still there. Commercialize has tainted some of it, perhaps, but you don't walk away from a Disney experience feeling like you are no appreciated. I had a professor at Butler University talk about the Disney experience for customer service. She talked about the expectations of Disney 'cast members' -- they don't have employees. If a cast member is having a bad day, they are reminded that they have to fake it, because to the visitors of the parks, this is the happiest place on earth. The customer experience is also very strong with Buffett's operations. He has taken the concept of a beach party on the road for over 40 years, and wants to make sure every concert goer walks away with a smile. The same is true at his restaurant / casino operations.

Woody Allen said that "80% of success is showing up." Too many people quite when things get tough, and it would have been easy for either of these two to do just that. Even more would have taken the initial success and said that was enough. Neither of these two would settle for that. Buffett and Disney each struggled to find any amount of success, both having paid their dues to rise up. Each had modest initial success and could have been content to leave it at that, but both risk it all to claim the big prize. Disney would have been consider successful producing animated movies, and Buffett could have made a good living as only a singer/songwriter. Each had a work ethic and drive that would not settle for a little success. To be a big success, you have to be willing to work tirelessly and risk big.

Genius, no matter how big a genius needs other people. Disney surrounded himself with some of the best animators and storytellers he could find. Buffett from his early days to today has worked with some of the best musicians and songwriters in the music business. Collectively, those groups were smarter than the individuals within it. 

Disney has been gone for decades; Buffett is now approaching 70 years old. The brands that they have created have and will outlive their existence on earth. But what a great legacy they both have that have become a part of the fabric of America. Diverse entities from very different people, but enough similarities that I think business operators and visionaries can review and learn much from each.

Tuesday, December 3, 2013

Cyber-Monday was a very mobile shopping day for retailers

In case you weren't convinced of the seismic shift to mobile, then perhaps the latest stats from Cyber-Monday can convince you.

Cyber-Monday sales were up year over year 18%, which is a great number for retailers. That is especially good given some of the so-so results reported from Black Friday and the weekend sales.

As for the mobile transformation, the Cyber-Monday numbers had two strong mobile stats driving the success. First off, roughly one in three purchases were made on a mobile device. That is a great stat that marketers need to remind retailers that have yet to create mobile friendly websites with e-commerce capabilities.

The other interesting stat from Monday was reported on Fox Business today. The cable business channel reported that Target announced that 20% of their Cyber-Monday sales were for Apple's Ipads. While other tablets are making headway in the market, the Ipad is still king (or is it a queen?).

http://www.foxbusiness.com/industries/2013/12/03/cyber-monday-sets-new-online-sales-record/



Sunday, December 1, 2013

How a professional basketball team has discovered the value of customer service 'the Disney Way"

It use to be that if you called a business a "Mickey Mouse operation" it was an insult. But today, it is a compliment and a sign that the organization is trying to create something special.

I'm not a terribly big NBA fan, which is odd living in Indiana where basketball is king. I am happy that the hometown team is now 15-1, and off to their best start ever. But even more impressive to me is news this past week that the Indiana Pacers have announced that they have contracted with the Disney Institute to help improve their operation; specifically their customer service.

http://www.ibj.com/pacers-hire-disney-to-help-upgrade-customer-service/PARAMS/article/44738



There is no budget in place for most businesses to bring Disney in to help. But look at the focus points on the info graphic; there is no secret sauce there! Creating the culture and training the staff for the results you want takes time but doesn't have to cost an arm and a leg.

Every organization needs to take pause, and determine how best to serve guests / customers. Nothing is more important! And nothing else will fix things if that is not happening. You cannot grow and hit long term goals if you and your staff is not taking care of the customer.

Creating VIP experiences needs to be the norm. You can see this in action at a theme park in Florida, an NBA game in Indiana and maybe the store down the street. Even the church I've started attending has taken this approach to heart.

My first visit to the church started with me turning my car's blinkers on as I approached the building. They wanted to know that I was new, and the sign as your turned in gave that instruction. From there, it was an exercise in customer service. Being called by name by everyone, given a gift, follow up after the visit that was superb. Nordstrom's, and Disney would be proud. Extreme?--you might think that, but my church and Disney understand the same thing.

The value of a positive experience as it relates to word of mouth advertising, and the value of a lifetime customer.