Web Business by Ken Burbary

Back to Digital Reality

We’re often so focused on the next big thing or mesmerized by the daily innovation of new services, tools and technologies that emerge on the web that something goes unnoticed. We slowly lose our stable footing and begin to get out of touch with reality. Some of us talk about it as “living inside the fishbowl”, and there is truth to the metaphor. While social computing, social media, and social business design may be the future for the web, we’re just not there yet. Change can be difficult. Things take time, no matter how much we want others to join us in the social web. Consider these facts a reminder about what’s happening in the Digital Marketing & Advertising world, TODAY.

• Search is still King of Digital - According to comScore, there were 13.6 billion searches last month by online Americans. Google maintains the lion share of that volume, at 65%. Google’s continued dominance in search is why they continue to rake in the cash, generating $5.52 billion in revenue for Q2 2009. Simple math says Google is averaging $20 billion in revenue annually, while social darlings such as Twitter have yet to demonstrate a sound business model let alone any revenue. At the end of the day, the biggest business in Digital remains paid search advertising and display advertising. Companies spend millions on them and will continue to do so until these channels stop performing. Even Facebook, which boasts 250 million active users worldwide, only generates an estimated $300-$350 million in revenue, a mere fraction of Google’s financial success.
• Email Marketing, strong and still growing – Email has been and continues to be one of the workhorses of Digital communications. Despite all the innovation in communications technologies we’ve seen with the emergence of social, email continues to grow in total spend, offers mature measurement and analytics, and can be deployed very cost effectively as a result of falling CPMs and a high ROI.
• Mobile finally emerges as a viable option – Mobile device penetration is sufficiently high enough that it has become a viable option for companies to pursue cost effectively, and on terms consumers prefer. Already we’re seeing mobile economies generate substantial revenues. The Apple app store sells $200 million worth of mobile software applications each month, putting the iPhone app economy at $2.4 billion. Additionally, the Android marketplace brings in $5 million per month in mobile app sales.
• Online brands declared dead still thrive – Facebook and Twitter seem to dominate headlines and consumer attention, or do they? Myspace is still drawing in ~60 million unique visitors per month. While this trails Facebook by a wide margin, that is TRIPLE than number of active monthly unique visitors Twitter brings in. Now, that isn’t to mean I expect Myspace to win the social network arms race, but rather to demonstrate that it is still a thriving destination where millions of consumers spend their time. Looking at the top 50 most visited Web Properties in July 2009 and you can see other online brands that have been written off, Yahoo, AOL, even Microsoft Expedia.

Don’t disregard these destinations as irrelevant until you’ve done due diligence to understand your target audience, and where they spend their time.

The point of all this is to remember that we live in a heavily diversified online landscape. Resist the allure of shiny objects, and don’t buy into a single channel silver bullet theory (especially social!). Work hard to understand your audience, and craft a strategy to engage that is spread across the relevant channels listed above. An integrated, diversified Digital asset allocation will provide the most effective results, and with the least amount of risk.

The Lost Art of Common Sense in Digital Marketing

When did we, marketers & brands, lose touch with humanity and thus reality?

When did we stop stop putting the needs and concerns of our customers first?

When did we throw common sense out the window?

Perhaps some never have put customers needs first, or maybe they did at one point but lost their way. A lot of the marketing that I see now is still centered around what the company wants consumers to think about, feel, or do/take action on. That worked for a long time (before social technologies leveled the playing field) but just doesn’t cut it anymore. This isn’t news to many marketers (in theory), and yet there are still so many brands and companies that haven’t yet begun to embrace helping customers and prospects instead of trying to get them to listen to the brand message. Your brand message should be:

I’m here to help make it easier for you to work with my brand

I recently presented on this topic at the Midwest Digital Conference because I believe there has never been a better time for brands to change their approach, and realign their efforts with customers expectations. The interuptive messaging of advertising continues to be less effective. Yet so many brands continue to sit on the sidelines, bury their head in the sand, and ignore the alternatives available to them. News Flash:

The problem isn’t going away because you are ignoring it

We’re in a new era. The social marketing era. An era of new expectations for brands, new rules for interacting, and new methods/techniques for reaching customers. One of the best things about this new era is that you don’t have to guess anymore about what your business should focus on. Why not? Listen to your customers and they will tell you what is wrong, what they need yet aren’t getting from you, and what direction to focus on moving forward. A well planned, ongoing listening program will unearth this info for you. No more guessing. No more well-planned focus group projects. The internet is your on-demand focus group, providing real time feedback every day. All you need to do is harness the tools available and be open to hearing what people are saying. Make no mistake about it, customers are talking!

Taking the next step

Once the needs are identified, deciding what to do next is easy. Solve customer problems! Build a product they are asking for. If you’re a service provider, then use common sense and be helpful! Social marketing offers a tremendous way to do this. With it, big companies can get smaller, by offering individualized, helpful interactions. Small companies can get bigger, enabling them to increase their reach beyond their physical and/or geographic limits.

If you’re planning a strategy to reach consumers online, consider these tips:

1. Offer value - Use common sense, provide customers and prospects with value, not messages.
2. Feelings matter – People remember how you made them feel, not what you said. Plan accordingly.
3. Think holistically - Focus on every touch point a consumer has with your brand. Consumers interact and form opinions of your brand on web sites, social networks like Facebook & Twitter, communities, support forums and video sharing sites. Every individual counts. Everyone is an influencer.
4. Be sincere – You need to genuinely care about helping your customers and prospects. Fake it, do it half heartedly, and they will notice. Don’t dilute your interaction by taking their loyalty for granted. Wake up each day assuming today is the day you will earn that customer’s loyalty. Difficult to gain, easy to lose. As @Garyvee would say, HUSTLE!
5. Ask questions – Once you have identified the problems, objectives and established relationships, ask questions. Lots of questions. Relentlessly inquire about what your customers think. And constantly remind them you want their input and involvement. You will be rewarded with ideas and suggestions the internal product development team can’t produce on their own.

Is any of this groundbreaking? No. In fact, it’s common sense (or should be). Common sense is often one of the trickiest things. My colleague Len Kendall reminded me today how difficult this all can be, with this quote  “We know our common sense is right, most of the time we just find it hard to prove it”

Hopefully the path to proving it got a little bit easier with this reminder.

Digital Darwinism: What’s in your brands DNA?

I enjoyed this video of Joe Crump, Vice President, Strategy & Planning, Avenue A | Razorfish, in which he describes how the marketing/advertising industry and brands have entered a new era, one he calls Digital Darwinism. It’s a 16 minute video full of trends and perspectives on the state of the industry that you should carefully consider. Because in this era, only the strongest brands will survive.

“The age of Digital Darwinism has arrived. An age of blindingly fast pace, technology is leapfrogging, television is failing, and the brand landscape is changing more than ever before.”

I’ve also embedded the slides he used during the presentation. See below.

| View | Upload your own

Thanks to David Armano for pointing out the video!