Most of us are familiar with the different profiles of Millennials, Gen Xers, and Boomers. It can be fun to interpret people's behaviors in the context of what we know about generational research. But are we making proper use of these generational insights in our marketing?
Whether your brand focuses primarily on customers that fall into a single generation or across groups, the insights that have been unearthed on these groups should be better reflected in our efforts. The ways in which we process information as individual marketers may be rather different from those of huge swaths of our target audiences.
This piece is an attempt to spawn thinking about whether our own marketing efforts have the communication "legs" necessary to achieve their full potential. Are we reflecting what we know in what we do? As a first step, I'd like to explore five aspects of our communications and outline the ways that we can ensure that our brands get maximum advantage.
1. Showing respect
No generation tolerates disrespect well, but I think it's safe to say that Millennials and Gen Xers are more demanding when it comes to respect and the ways in which they interact with brands. If you're a fan of "Mad Men," you'll know what I mean when I speak of the "punter mentality" -- the sense that consumers deserve to be done in by emotional sells and aggressive claims. As the saying goes, "They believe what we tell them to."
I think there is no better example of this mentality than Tab's 1970s "Mindsticker" campaign:
I'm not suggesting for a moment that Boomer women wanted to worry about losing their husbands because of choosing the wrong beverage. But that sort of message was part of our formative marketing reality.
Millennials and Gen Xers who grew up in a wired environment are more demanding with regard to the ways in which brands reach and speak with them. For example, think about their reaction to the Motrin ad that poked fun at baby sling wearers.
The insult was hardly on the same scale as Mindsticker, but the firestorm of reaction was enormous, and driven wholly by Millennial and Gen X bloggers.
One demonstrates respect by reflecting realistic lifestyles, multiculturalism, and the sense that what matters is what the user thinks, not what the brand thinks. You reflect respect by…you know…showing it. Perhaps there is no better example than this Google ad:
What makes it noteworthy is the not-so-subtle shift to user as hero, with brand as enabler. The company could very easily have done some sort of "ole skool" "Google to the rescue" campaign. Instead, it reflected the sensibilities of younger demos while also creating a message that could resonate across age.
2. Ensuring credibility
The "Greatest Generation" -- the one that went to war against Germany and Japan -- is known for its respect of authority and belief in the words of institutions, and this includes brands. Boomers, a bit less so. So, many of the defining experiences of the Boomer generation are of trust violated.
All this cultivated some skepticism among 45-65 year olds. For Gen X and Millennials, those feelings of mistrust are even greater. Belief in the veracity of advertising is at its lowest ebb among these groups.
For brands to gain the trust of the younger group, relatable personal experiences of "people like me" are extremely valuable. Of course, testimonials have been a staple of the ad biz for decades -- but the advent of social has made access to "unbiased" reviews more ubiquitous.
Brands can appeal especially to Millennials and Gen Xers, but also to Boomers, by defining powerful social media evangelism initiatives that magnify access to positive messages.
Platforms like Zuberance http://www.zuberance.com/ and ExpoTV http://www.expotv.com/ , which encourage people to create and post brand related messages, are two examples of how we can give voice to our fans without perpetrating the sort of heavy handed control that would undermine the credibility of the positive messages. These and other platforms do not prevent people from making negative statements but rather ensure that among the available comments and videos related to your brand, your fans get their say.
Of course, it would be difficult to deliver a powerful marketing program solely through community messages. But recognizing the inherent skepticism prevalent among younger groups can help us craft better brand-created messages as well. We need to cut back on hyperbole, and instead deliver positive but wholly accurate brand messages. Exaggerated claims are quickly exposed in our world of two way communications, as consumer disappointment gets a far broader audience than it did before the Internet. By contrast, delivering what you promise, social responsibility, and respect for the needs of users go a long way.
3. Delivering consistency
The always-on nature of modern media has conditioned all of us, especially Millennials, to expect access to messages on demand. Think about how your attitude toward TV changed when you got access to Youtube, Netflix, or Hulu.
The fact is, the younger you are, the less likely you are to be satisfied to wait for appointment media. Concepts like NBC's 1990 marketing effort "Must See Thursday" (Primetime) simply don't have the same pull anymore.
This has implications on how you deliver your video messages. It means that online viewing is an increasingly important channel for consumers and that if you choose TV spots to the exclusion of other media you may find that huge swaths of the population are under delivered.
It also points to the need for social community participation, because younger consumers expect to be able to access brand communications on their time and in "their" places. When we set goals to have our web presences visited weekly or monthly, we miss the sea change that on-demand media have wrought.
All consumers -- but especially Millennials -- come to us on their time and their terms. We can increase that likelihood with more frequent communications, more relevant messages, and getting ourselves closer to where they choose to spend time online. Naturally, the ubiquity of social media has made brand presences in these environments more relevant to all generations. Boomers and Gen Xers are all over social media, and the preferences of Millennials have spread to these more mature groups.
4. Rethinking focus
Millennials are far more oriented to multitasking and simultaneous communications. Boomers are more one-task-at-a-time oriented. You probably see this in your daily interactions with people of other generations.
I, for example, am constantly amazed by the ability of the Millennials around me to keep track of multiple activities at once and juggle a variety of simultaneous communications streams. By contrast, if you asked them what they notice about me, they'd tell you about the ability to spend hours or days focusing on the intricacies of a single task, and perhaps the ability to remember a great deal of detail.
In a work environment, having a mix of these skills is a great thing.
The (at times) forgotten implication for marketers is that we need to alter the single path nature of communications. When you visit a website, for example, there is generally a dominant communication on the first page. From there the goal is often to move people through the navigation from left to right or top to bottom, in a prescribed path.
To appeal to younger consumers, we need to make more kinds of information available on pages, encourage people to find their own paths, and provide multiple means of interaction.
Nike offered a page clearly more optimized to Millennials than to someone of my generation.
The brand message is strong, but it's ultimately provided through user participation and the constantly moving graphics. This offers users the opportunity to consume multiple messages simultaneously and to follow up on those they find interesting. For me, such a site is a bit of a nightmare – off-putting to say the least. But then, I am not a good prospect for the brand.
Contrast that approach with Cialis, a product targeted to those over 35:
A site like this tells you the dominant message and then gives you an eminently linear path to follow.
For your brand, it is more likely that you need to appeal to multiple generations, so finding an appropriate balance is the most important task. But using these two extreme examples can help define the entire range of possible designs, from which you can narrow to the approach and balance that works best for you.
This may also have implications for banners and other small ad spaces.
Conventional wisdom tends to argue for simplicity and message brevity in such spaces. However, I think that direction may be becoming outdated. Perhaps the availability of more ways to interact with ad units will ultimately overwhelm the standard banner approach. Banner clickers tend to be older, so that argues for simplicity. But our desire to sell to younger generations may require a wholesale rethink of what an "ad" actually is.
5. Providing entertainment
Inherent in the fragmentation of media that has defined the lives of younger consumers is the idea that at any moment we all have millions of potential alternatives to the media and marketing experience that we are currently seeing.
As a Boomer I was "trained" to wait through pods of commercials, and to follow a linear communications path. As a result, my expectations with regard to how interesting brand communications need to be are lower than someone 20 years my junior. Shorter and more scannable copy, more interesting stories, briefer marketing messages --all are part of a shift in control from brand dominated to consumer dominated.
Millennials expect our messages to be more relevant to them, more engaging, and more immersive.
These are all examples of higher expectations. Where expectations may actually be lower among Millennials is with regard to production values. Over and over the younger consumer has demonstrated a preference for ideas and truthful credibility over budget busting production values. It doesn't mean the end to multimillion dollar video production extravaganzas, but rather that what counts even more are message, story, and engagement.
Ford's successful campaign for the Focus featuring "Doug the Puppet" offers a great example of how entertainment value helped heighten the appeal of a considered purchase.
For the last couple Super Bowls, Doritos has proven that by asking consumers to make ads for the company. The best entries have decent production values but really shine when it comes to their storytelling.
Conclusions
This is by no means an exhaustive list to consider when examining your efforts with regard to generational insights. However, the need to do so becomes quickly apparent when we take the time to look at our own messaging in the context of the eyes and brains of our prospects.
One important final thought is the need to balance youth culture with mature wallets. Any brand's long term survival depends upon attracting the next generation needs to ensure that its messages are delivered in a manner that is relevant to younger people.
But today's demographic realities point even more strongly to the value of attracting Boomers and keeping them sold on your products.
Older generations have had more money than their younger counterparts for a long time. But signs point to this being even more true in the years ahead. Persistently high Millennial unemployment and underemployment may make it harder for today's youngest adults to match or exceed the success of their older counterparts.
In such an environment, and in a world where life spans are growing, it makes sense to ensure that as we refine our marketing efforts toward youth we also remember the needs of their well-heeled elders.
Thanks to iMediaConnection.com for publishing this first.
Friday, April 13, 2012
Thursday, April 5, 2012
How to thrive as a second city agency
For decades, three markets have consistently dominated the ad sector -- New York, LA, and Chicago -- yet a growing percentage of industry dollars are coming from other cities that aren't historically associated with the advertising and media businesses. These are the second cities.
I use the term "second cities" with respect and affection (and in the same spirit as the name of the leading comedy troupe in the country). By second cities I mean markets like Atlanta, Dallas, Charleston, Minneapolis, and Seattle where some strong agencies are based. (San Francisco straddles the line -- it is far smaller than the "big three," yet it is home to a number of major agencies and offices.) This piece is about such agencies -- shops trying and, in some cases, succeeding as major national players. Some say second city agencies face different challenges and opportunities. Let's take a look at what it means to be second city, and whether it matters.
Getting into pitches
Winning new business has always been a primary concern for agencies, wherever headquartered. For this article, I spoke with 23 people and most acknowledged that being a second city can affect their ability to get into pitches.
A leading pitch consultant, who asked not to be identified, believes the reluctance of some brands to consider second city agencies stems from perceptions about scale and expertise, in addition to vanity.
"It can be hard to convince some clients to consider [a] second city agency because of fear they lack the resources [and] expertise to serve major accounts. They may also question whether an agency keeps up with digital innovation. Sometimes it comes down to emotional factors, like wanting to feel 'big time', or reluctance to travel to 'Omaha' for meetings."
Quite a few of the folks I spoke with acknowledged that they get their share of questions regarding resources. Most believe that this sort of concern is an issue of perception versus reality.
Tamara Bousquet, Executive Media Director for San Diego-based MEA Digital, said:
"I'd bet my job that our work, our people, are better than most that come out of leading cities and shops. Our clients, who have been working with us for 4 plus years, 8 plus years, are getting better work than they've received at other agencies. These long-standing partnerships are proof of our staff and agency's excellence."
Smart second city agencies recognize opportunities to take advantage of their location by differentiating themselves from the dozens of medium-sized New York shops. Consider Richards Group -- it's spent years selling Dallas as a reason why they are so adept at persuading Middle America.
Recruiting and retention
When you run an agency, you need a host of skills sets. Many people with desirable skills choose to live in leading ad markets. That being said, a number of great people are unable or unwilling to live in Chicago, Santa Monica, or Chelsea.
Such people are not evenly distributed in every city and town. It's certainly no accident that many agencies locate in tech hubs and college towns with strong technology and marketing programs. Steve Parker, Jr., co-founder and managing partner of Levelwing, pointed to Charleston as a perfect example:
"Our largest office is in Charleston, SC. Although many see Charleston as a destination for vacation, it is home to some large and highly sophisticated technology businesses such as Blackbaud, Benefitfocus and Boeing. Additionally, many software companies are based here. Colleges such as The Citadel, Charleston Southern University and College of Charleston are part of our community. Close-by Clemson University and the University of South Carolina have strong mathematics, engineering and technology programs. In December 2009 Forbes rated Charleston as the 8th Smartest City in the World."
This leads us to the subject of salaries and retention. There's an urban legend about an AMP who started in Manhattan making $13,000 a year, lived with 11 others in a studio, and ate nothing but ad-network-branded Tic-Tacs for a year. In reality, ad people in the top markets make significant coin. But when you buy your Tide at Gristede's, the "fat" paycheck doesn't go far. Most second cities are far less expensive. The chart below calculates the cost of living equivalent to $75,000 a year in Manhattan.
Those I spoke with emphasized that rather than offering people a precisely equivalent salary, they pay people to have a better life. Credit altrusim and the reality that an Atlantan wouldn't be willing to live in an apartment where they can stand in the center and touch all four walls.
No one I interviewed said that being in a second city automatically made for greater employee commitment, but several said that the issues facing major markets don't reflect their daily experience. According to Bousquet:
"I'm not dealing with the 'entitled'; those who think because they've worked in this business for 6 months they deserve a raise and a promotion. Our folks appreciate the opportunity to do great work on great brands with great people; we don't deal with the ego of younger employees that many large agencies in large cities say they deal with daily. In fact, our average employee tenure is 3+ years and that's something we're proud of."
Second cities and specialization
Detroit and Las Vegas are two markets highly focused on business verticals. While agencies there work across many sectors, they are most known for auto and hospitality respectively.
Shawn Rorick, President of LVIMA, suggested that hospitality defines a big part -- but not all -- of Vegas.
Shawn Rorick, President of LVIMA, suggested that hospitality defines a big part -- but not all -- of Vegas.
"It's a safe bet that an agency in Las Vegas is going to really understand the travel business. There are many world class experts in that sector here. Las Vegas marketers in particular can be more adept in getting insights through data collected by the casino/resorts. Recession made our community of professionals even sharper because it requires the utmost sophistication to maximize ROI."
Lissie Heinkele, a long time Detroit agency leader, considers regional expertise as particularly relevant.
"In auto, the three tiered marketing environment -- national, dealer associations, dealers -- is absolutely central to the business of moving metal. But there's more than that. Auto marketing is some of the most sophisticated in digital. You can more readily find uberexperts here. There's also a passion -- many of us are true "gearheads." When you're amping up for a major launch, having that passion for cars brings out the best in programs."
Being known for a segment has its challenges. "Sometimes people think we are all travel, all the time," Rorick said. "That can be a hindrance when you are working toward broadening your category base.""It can be challenging for agencies to overcome the 'category town' perception. But many Detroit agencies have clients far afield from the auto world. They serve these clients very well," Heinkele said.
oing business with partners
Many agencies in smaller markets report that fewer vendors visit them. These agencies experience fewer phone calls, "drop bys," and requests for meetings. Thus, it is arguably harder for second city shops to keep abreast of important developments because the companies creating them don't come knocking as often. While the internet certainly eases the strain, second city folks have to be more proactive about pursuing knowledge.
From the sell side, there appears to be great business in serving second city agencies. "It costs you a little more to get a rep to Dallas. But it's worth the expense. When you make the effort you find a high level of 'engagement' from the agency teams in those markets." said John Durham, CEO of Catalyst S+F and a long-time digital solutions sales leader.
Durham also notes that there is also a perception that second city professionals are better mannered.
"I appreciate manners. Agencies in smaller markets generally show a high level of professionalism. Mutual respect. It runs the gamut, but when you call on an agency in a second tier market, chances are the people will show up and engage."
Adam Bergman, Senior Account Executive for Yume, emphasized that there is real money to be made in such markets:
"Some of these agencies are a heckuvalot bigger than they seem. Being in New York doesn't necessarily mean a shop is big; being in a 'second tier' market doesn't prove that an agency is small. Additionally, many of these agencies are careful to stay at the bleeding edge of the industry -- to 'prove' that you don't need to be in Midtown to be redefining and shaping the industry."
More sellers are seeking local people to serve these second cities. Lynn Ingham, a leading digital marketing recruiter, argued that it's harder -- but not impossible -- to find great people in these markets.
"Many top-notch digital sellers are in the big three markets. There are a few in the other cities, but you need to dig deeper to find them. Over time we're seeing more great sellers native to these markets, and leading sellers trained in the big three markets deciding to move to other cities for a plethora of reasons."
Lori Xeller, Director of Digital Sales at Republic Media in Phoenix, believes the talent is definitely out there.
"It's true that the total pool of digital sellers might be smaller than a major market like LA or San Francisco, but they ARE out there. We've built a strong team by constantly keeping our eyes open for great talent and creating real career paths to keep our A players satisfied and growing. I've found that our digital sellers are focused on being long-term digital consultants for their clients so they have deep relationships. They are loyal to their clients and with their internal teams."
Managing the exit
Many second city shops are independents, and some hope one day to sell to a holding company. Proximity helps when you are trying to make your business known to would be acquirers. Mark Naples, managing partner of strategy and communications firm Wit Strategy, underscored the importance of developing a prominent agency profile.
"There are so many solid agencies out there. Getting noticed by would-be acquirers requires a clear strategy that will generate a distinct identity, rather than more broad awareness. For example, at the height of its powers a few years ago, CP+B had Alex Bogusky as the tip of its spear, smirking to us knowingly from the covers of national magazines. But, what is CP+B's identity today? For non-New York based agencies, it's harder to pull off getting the right kind of notice because proximity within a roughly 50 block radius drives a large measure of perceived importance to the trades and the holding companies. If the cool kids aren't seeing you on their playground, it's harder for them to accept that you might be cool too."
What clients say about second city agencies
When asked to draw some general distinctions, most of the clients I spoke with were careful not to make assertions beyond the experience they had with a particular shop. Most said that location had no real impact on the quality of work and relationship and that it's about the agency, not the city.
One acknowledged that the out of town "thing" did affect the perceptions during the pitch, but that daily experience with the team quickly mitigated their concerns:
"You always have vibes, gut feelings, and concerns when you are picking an agency. During our last RFP, we questioned whether a non-New York agency would 'get' fashion. We ultimately chose them because they seemed like they'd be great to work with. They really are."
Perhaps that's a fitting conclusion. After all, we are in the perception business. Although it may not be a "real issue," it is a genuine concern for some. Despite this, many second city shops are succeeding because ultimately what matters most is the quality of the team, not the address.ty shops are independents, and some hope one day to sell to a holding company. Proximity helps when you are trying to make your business known to would be acquirers. Mark Naples, managing partner of strategy and communications firm Wit Strategy, underscored the importance of developing a prominent agency profile.
Thanks to iMediaConnection for publishing this first.
Monday, April 2, 2012
5 reasons why the banner will outlive us all
The smug little banner
Pity
the poor banner. Maligned by millions and attacked by the very people whose
paychecks they (largely) make possible, the banner is perhaps the most
criticized little workhorse in our culture.
But
do banners let our harsh words affect their self esteem? No. Banners proudly
hold their ground -- shrinking for no one. They know that other people's
opinions of them are none of their business. They know that, like the periplaneta americana they will be here long
after their detractors have returned to ashes and dust. Perhaps with little
smirks on their faces as their last attackers return to the earth.
Why
can the little banner rest easy knowing that it will get the last eight-second
(max) laugh? Because no matter how much we poseurs pretend to despise them,
they serve a critical purpose in the internet environment -- and will continue
to do so for the foreseeable future.
Why
can these quietly smug little messages be so certain that their future is
bright? Let's take a look at five reasons.
1. Effectiveness
Banners work -- hard, in fact
People
wax philosophic about banner blindness. They point to remarkably small click
rates and studies that suggest that large numbers of people don't interact with
them.
Photo: Irina Slutsky
But
empirical evidence proves that they work plenty hard. There are lots of studies
that demonstrate their efficacy. I'll confine this discussion to just one. The
IAB did a study several years ago that demonstrated a broad range of positive
impacts from banner ads. Fielded across 12 leading websites with 16,758 respondents, the study
demonstrated significantly strong impacts on awareness, brand measures, and
purchase.
Further, the in-market experience
of thousands -- hundreds of thousands of advertisers -- also proves their
effectiveness. Digital is arguably the most accountable media available. And
every year, more companies spend more money on banners. Why? Because they deliver
against concrete business objectives. The results and reporting show this over
and over again.
Banners work well despite serving
in an environment with remarkable clutter. It's not at all unusual for there to
be 12 banners on a page -- pages they might also share with video players,
articles, and other forms of content. Despite this plethora of distractions,
banners continue to deliver cost effective means to drive sales, awareness, and
brand perceptions. Would they work better in a less
cluttered page? Probably. But they do their jobs even in environments filled
with myriad distractions.
2. Necessary evils
They're like death and taxes -- inevitable
Not
every ad can explode on a screen in expanderiffic intrusiveness. Multiple
interstitials between every page wouldn't make for much of a consumer
experience. If you accept that it is unrealistic to expect consumers to seek
out all of the marketing experiences necessary to keep the economy going -- if
you accept that we need loads of revenue to keep the lights on at content sites
-- then ads on pages are going to be part of the web experience for years to
come.
Am
I suggesting that they are better than rich, involving, multimedia experiences that consumers actively seek? For some brands, yes. Not every communication
challenge requires depth. And most brands cannot afford to do everything with
bells and whistles.
Photo: BBT609
Banners
are limited in their ability to communicate complicated stories. But for many
companies and brands, they are the most cost-effective means of delivering a
graphical message. Publishers will continue to leverage them as a means of
monetizing pages in lieu of spawning foreground experiences every time the user
moves a mouse over text or a photo or another page element.
Hey,
if you are a brand that can afford to do everything rich and big and bold,
fantastic. Knock yourself out. But in order to monetize the hundreds of
millions of pages of content out there, we need a standardized, simple-to-execute
solution that doesn't totally tick consumers off.
3. Revenue and technology advances
They are marvelous foot soldiers in the
battle for revenue
Banners
deliver great results in direct response programs, which continue to comprise
fully half of digital advertising. While the click and interaction rates for
banners have always been rather low, so too are their typical prices.
Premium
publications can command high CPMs precisely because banners on their sites
deliver results that warrant these costs. But the even bigger story is that the
vast majority of banners sell for remarkably low CPMs. These low rates more
than make up for the small response rates they spawn. Further, when the
view-through impacts are computed, the value per dollar spent on banners is
even more apparent.
Finally,
the advent of affordable attribution analyses is demonstrating that banners are
even more powerful components of direct-response programs, helping to drive far
more sales than can be directly attributed to them through click-through
analysis.
They just keep getting smarter
Minimally
targeted dirt cheap tonnage will probably play an important role for lots of
brands for the foreseeable future. But the explosion in available targeting
data, coupled with exchange-based purchasing platforms for these targeting
aids, has transformed the banner business into a world in which highly refined
messages can be delivered to specific audience segments cost effectively and
with minimal waste.
Photo: Geoff Stearns
That's
a key way banners have gotten smarter on the back end. On the front end, new
technologies have dramatically expanded the range of capabilities and
interactions possible within the confines of these small commercial spaces.
Video, dynamic content, multiple hotspots, and more -- these elements all drive
more and different interactions amid declining third-party technology costs.
5. A sound business model
It doesn't matter that people don't like
them
You'd
be hard pressed to find a consumer who looked forward to seeing more banners as
he or she surfed the web. But when push comes to shove, consumer preference
doesn't matter much here. Banners are providing a huge portion of the revenue
for content creators online. And a decent web designer can create templates and
pages where banners have noticing value but don't drive viewers off.
Photo: caizhonghan
Hey,
someone has to pay for all this content and access, and banners appear to be a
way to balance the need for revenue with consumers' reluctance to pay for
content. People understand the need for ads and revenue. While they may not
relish the experience of seeing these ads, they understand that, without them,
a lot of the content they enjoy would disappear.
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