Tag Archives: advertising

Your aspiring customers can be more valuable than your paying ones…

12 Wednesday Jun 2019

Posted by in Advertising, Branding, Marketing, Media

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My recent article about the Koala team’s overzealous belief of their brand awareness reminded me of a story about one of my first bosses, Sir Peter Abeles.

Sir Peter built the TNT global transport and logistics empire, which at one stage owned Ansett airlines. I was the National Marketing Manager of TNTGroup4, which was where I got loads of hands-on experience building databases and using direct marketing techniques for B2B and consumer marketing.

Sir Peter Abeles

Reg Ansett, the visionary founder of Ansett Airlines, bought Hayman Island in the 1950s and turned it into Australia’s most luxurious island holiday resort. Of course, the only way to get to the island back then was with Ansett Airlines. (BTW this was many decades before I eloped to get married on Hayman Island)

Back in the 1980’s after TNT bought Ansett – and consequently Hayman Island – the company made a huge investment in refurbishing the Hayman Island Resort. Those in the hospitality industry will know that all resorts eventually get stale and require deep pockets to bring them up to date.

After completion of the refurbishment, Sir Peter flew to Hayman Island to inspect his heavy investment. He attended the soft launch to the travel trade and left the island feeling comfortable about its new direction. Upon landing in Sydney, Sir Peter would normally be collected by his personal driver, but on this occasion his driver was unavailable.

Hayman Island Resort

So Sir Peter took a taxi. The first thing the cabbie asked Sir Peter was “where have you been?” Beeming proudly, Sir Peter said “Hayman Island.” The cabbie immediately replied “where’s that?”

Suffice to say, Sir Peter politely explained where and what Hayman Island was, while discreetly seething under his breath. As soon as he got back to work, he demanded to see the Hayman Island marketing team, to get an explanation as to why a taxi driver at Sydney Airport hadn’t a clue about Hayman Island.

The mistake the team made was simple. It had micro-targeted a “luxury audience” by advertising exclusively in the Ansett magazine, upmarket lifestyle, fashion and travel magazines, as well as through media releases to travel writers. The problem with this niche-tactic of course, was that only those who could immediately afford to go to Hayman Island saw the advertising.

Nobody who aspired to go to Hayman Island, or who would save to go for a holiday there, had seen the advertising. They were not aware the Hayman Island Resort existed. So when Sir Peter said “Hayman Island” when answering the cabbie’s question, he didn’t get affirmation from the driver about his decision. Sir Peter was expecting something like “wow you’re lucky, I dream of having a holiday there.”

Holiday envy…

Part of the process of a considered purchase, such as a luxury holiday, home, car, camera, bed, lounge etc is the reinforcement by colleagues that your decision is a good one. Or even one they envy. It’s part of what drives our ego.

This is why your brand advertising should not just reach those most likely to buy, or those who buy regularly, but also those who might buy occasionally or dream of buying. Sales growth comes in distinct ways depending upon what you’re selling. Fast moving consumer goods such as groceries for example, have different buying patterns to high-value considered purchases.

Growth for high volume (often unconsidered) purchases comes from:

  • Convincing current high volume customers to consume more of your product
  • Converting high volume customers from a competitor to your brand
  • Getting more occasional users to buy your brand when they are in the market

Read Byron Sharp’s book; How Brands Grow for more detail.

Growth for low volume considered purchases comes from:

  • Additional purchase by a current customer
  • Converting a customer from a competitor to your brand
  • Getting first-time buyers to buy your brand

So, regardless of your product category, when marketing to consumers, you want as many people to know about your brand as possible. This includes those who will buy your brand and those who wish they could buy your brand. It’s why brand advertising, publicity, social sharing and review sites are all important tactics.

B2B is a different kettle of fish – you can often put every customer in the category on a floppy disk (ask your parents if you don’t know) and communicate with them based on where they are in their buying cycle, often driven by contractual arrangements or tenders. That’s for another article.

So don’t forget your aspirational customers, they help your paying customers justify their purchase and may eventually become your customers too.

Hmmm, it’s almost 20 years since my bride and I eloped. Maybe I should plan a quiet family celebration at home? Not likely. I suspect my bride aspires to at least a week back on Hayman Island.

I wonder if the resort has a past customer deal…

What does Uber Eats have in common with all these retail brands…

07 Friday Jun 2019

Posted by in Advertising, Digital, Digital marketing, Direct Marketing, Marketing, Media

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Regular readers will know I’ve written about this before – (see below)

But given the increased amount of television and outdoor advertising that Uber Eats is doing lately, I thought I’d revisit it. Curiously, I’ve not seen any Uber Eats advertising online…yet. (now that I’ve mentioned it, I’ll probably be chased around the web thanks to cookies)

By way of background, I’ve owned a suburban supermarket and a travel agency – in different suburbs in different centuries. For both businesses, one of the most powerful media for generating retail store traffic and sales, was unaddressed mail. I’ve also produced loads of retail catalogues and other letterbox collateral for my agency’s clients.

Yet despite the fact we live in a ‘digital world’ the letterbox is still one of the most profitable channels in which retailers can promote their wares. Truth be told, most retailers would struggle to survive if this channel was not available.

Just this week, that most uber of digital disruptors – Uber Eats – dropped an offer in my letterbox.

And so did the following brands:

  • Aldi
  • Woolworths
  • Coles
  • Big W
  • JB Hi-Fi
  • Chemist Warehouse
  • First Choice Liquor
  • Pizza Hut
  • Priceline Pharmacy
  • Telstra
  • Baby Bunting
  • Plush Furniture
  • A couple of local small businesses too

So if you’re under the delusion that we now only live in a digital world, get off your screen, go outside and check your letterbox.

You’ll be surprised what brands are using this channel – you might learn something and possibly even rethink where you spend your budget…

Gotta go and do the shopping now – where are those catalogues?

* https://themalcolmauldblog.com/2016/05/31/the-essential-media-channel-most-successful-digital-start-ups-cant-do-without/

* https://themalcolmauldblog.com/2017/05/23/uber-eats-and-airtasker-run-amazing-suburban-launches-using/

*https://themalcolmauldblog.com/2016/06/01/uber-and-others-have-it-smelling-a-lot-like-1999-again/

A marketer’s love of their own brand can cost them sales…

06 Thursday Jun 2019

Posted by in Advertising, Branding, Marketing

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In most western countries the mattress and bedding industry is highly competitive. The tactics usually involve retailers creating loads of different brands and price points, so it’s confusing and not easy for consumers to compare apples with apples, so to speak.

If you’re interested in just how weird and corrupt the industry can be, check out this story from Fast Company about the online mattress industry in the US. But I digress.

Recently I tweeted (a rare thing for me to do) about a cheeky outdoor poster by a company called Koala.com.

Here’s the poster:

It is located on a main road a few hundred metres before an Ikea store. The copy on the poster is:

NOFNIDEA?
no tools, no worries, koala.com

There is an accompanying image of an Alan Key and screws, like those you use when assembling Ikea furniture.

On the face of it, it’s quite a clever execution.

In marketing parlance; my unaided recall of the brand koala.com was zero. So I naturally assumed koala.com was a company that provided a service to assemble Ikea furniture.

I decided to check it out – only to discover Koala.com supplies mail-order mattresses. They are very good at it too – very similar brand personality to the Dollar Shaver Club.

So I tweeted the following:

“I suspect this cheeky outdoor poster from Koala only works if you know that Koala is a mattress brand. Otherwise, you probably assume Koala is service to put together Ikea flat packs. Marketers think everyone knows their brand as well as they do

The response from Koala was interesting to say the least:

“have you been living under a rock? if you’d like check us out here Ps. Koalas are terrible at building Ikea furniture”

The response is a dead giveaway that the Koala marketers are in love with their brand way more than the general public. They live their brand every day – it’s their job. They have been very successful, so assume that success translates to every (non-living under a rock) potential mattress-buyer, knowing all about them.

And while I can appreciate the enthusiasm of successful youthful marketers, it’s no excuse for poor manners.

woohoo we’re a success…

I responded to Koala explaining that because I was in marketing I was aware of their brand. But it turns out I was wrong. Again in marketing parlance; my aided recall kicked in, and I remembered an advertisement I’d seen with Serena Williams flogging mattresses and thought it was a Koala ad. Turns out my recall ain’t what it used to be, as Serena flogs a competitor.

The reason I’m writing about this is simple. In the last 12 months I’ve bought four mattresses – a king-size and three queen-size. I suspect that’s a reasonable sale, even for a company as successful as Koala appears to be.

I cannot tell you what brand they are and I was obviously living under a rock that had no Koala advertising, because I never considered buying a Koala. The Koala brand wasn’t on my radar and unlike most consumers, I actively watch advertising.

I just checked the mattress brands. The King is similar in style to the brand Serena is flogging, while the queens are a different brand again. In case you’re interested, my bride and I negotiated a bulk deal with a pleasing discount, after a bit of shopping around – we like the social aspect of shopping and discussing our requirements with salespeople.

Marketers must remember that customers don’t really care much about brands, except when they are in the market to buy, or when something goes wrong with the product or service they’ve bought. That’s why marketers need to advertise consistently and reach as many people as often as possible, as they cannot predict when people will buy. They must also not assume that their own attitude for their brand represents the typical consumer atttitude – the respective attitudes are usually vastly different.

Though I have been keeping an eye out for Koala advertising online and on TV, but alas nothing sighted yet. I suppose I’d better take that insightful advice from Koala and get out from the rock under which I’m living – I might get lucky and see a Koala advertisement and really live a fulfilling life…

Gotta go now, am off to have an afternoon snoozzzze…

The simple reason digital marketing fails so badly – it’s not what you think…

13 Tuesday Mar 2018

Posted by in Advertising, BIG DATA, Branding, Digital, Digital marketing, Direct Marketing, Email marketing, Marketing, Media, Social Media, Thought Leadership

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Who’d call themselves a digital marketer these days? As the evidence continues to grow about the lies, deceit, appalling ROI, as well as agency bias towards digital at the expense of better performing channels, it’s become embarrassing to claim you only have digital marketing skills.

But we shouldn’t be surprised. Lone voices in the wilderness have been warning for more than a decade that the digital chooks would come home to roost. Though their voices have largely been ignored.

The real reason so much digital marketing fails is simple – the people working in it don’t have the right marketing skills.

The evidence is plain to see in the online advertising space. Most online ads are brand ads not direct response ads, yet the internet is a pure direct response channel.

Fact – the internet is primarily a direct response channel. Online marketing is just direct marketing, albeit at a much faster pace than analogue channels.

You wouldn’t run a brand ad in a newspaper or on TV, then measure its success using direct marketing metrics. So why run brand ads online and expect direct responses? But this is exactly what the brand marketers do every day.

FYI direct marketers are making money online – have been since day one. But they are not running brand advertising to do so. They have tested the different emerging channels and ads. They avoid those channels that don’t work. In most cases these are the social channels.

They rarely use programmatic buying. They deal direct with the publishers. This is how they’ve always worked with analogue channels, so they already have the expertise to succeed in online channels – evolution, not revolution.

But the marketers who dominate online advertising are mostly brand marketers and that digital peculiarity, the fake marketer. They were lured by the magic of its measurability.

The magic of measurability

Unlike direct marketers, they had no prior experience of direct response measurement. The “response drug” in the form of open-rates, click-through rates, time on page, downloads and (occasionally) sales, hooked them like teenagers having their first drink. This measurability stuff was the secret marketing hooch they craved.

And just because measurability was new to them, they assumed it was new to the world.

So they rushed headlong into the online advertising world completely ill-equipped for success. To cover up this lack of expertise, they created new buzzwords to describe alleged new marketing tactics – despite these tactics being centuries-old.

To help position themselves, they used virtue signals, to manufacture FOMO. Direct marketing was called old-fashioned, implying it was irrelevant. Some even made the stupid claim that DM no longer exists (really, some fools stated such crap). All it did was reflect their lack of marketing expertise.

For those who might be confused, direct marketing (or direct response advertising) is any marketing activity whereby you communicate directly to individual customers and prospects, or they respond directly to you, in any media channel. The outcome of the communication is that there is always a measured exchange, of either dollars or data, or both.

For example, the customer provides their credit card and in return they get a case of wine, or they provide their contact details, in exchange for an email newsletter.

Branding for branding’s sake, is a secondary priority with a direct response message.

But here’s the rub with direct marketing…

You are trying to get prospects who may or may not know your brand, to do what you want them to do, when you want them to do it – take immediate action and respond.

That’s hard shit and requires some specialist skills, the least of which is the ability to write persuasively.

Yet the majority of people working in digital marketing have no direct marketing expertise. If they did, they wouldn’t have invented fake vanity metrics such as likes, and shares, to justify their credibility.

The brand and fake marketers have misunderstood the digital channels

Direct response is definitely not the way to sell fast moving consumer goods, in single unit sales. Why it took P&G until last year, at a cost of $Billions, to realise this fact, is a mystery.

The only reason to use direct response for packaged goods, is to sell a continuity programme or subscription. For example, that digital darling, the Dollar Shaver Club is a direct marketer and uses direct response advertising to sell subscriptions. Both analogue and digital wine clubs also sell wine by subscription.

The process is known as “negative-option” and I’ve written about it before. The marketer delivers products on a regular basis, say monthly, until the customer says “stop”. This is a way of marketing that is more than 100 years old and goes back to the days of mail-order. It’s not new just because we have an internet.

The more they failed the more they created spreadsheets of bullshit

These “digital marketers” tried to justify the poor branding results with vanity metrics. They even created jargon such as “customer engagement” to make the metrics appear genuine. When the vanity metrics failed, they just increased their tracking to create even more spreadsheets of bullshit. They attempted to confuse the world with useless data to convince us they were legitimate.

Sorry folks, but data without dollars is just doo-doo.

Steaming pile of data doo-doo

The tracking eventually became stalking as they desperately tried to get sales, from ads that didn’t sell, to people who didn’t want to buy. Have you ever seen a grocer chase a customer out the door shouting offers at them, just because the customer picked up a lemon then put it back without buying? Welcome to the world of remarketing – placing cigarette burns on your customers long after they’ve left you.

Read Bob Hoffman’s brilliant Badmen for the appalling truth of the tracking, stalking and the fake world of online metrics.

Playing in the fringes

Any direct marketer will tell you, when you are marketing to a mass audience and chasing a response, you are always playing in the fringes. You don’t know when people are going to buy. That’s why you need to give them as much information as possible, plus some incentive, to help them make a decision in your favour.

Here’s an example. If a product is only bought once-a-year, then on average, in any single week, only 2% of the annual market is buying – 50 weeks PA x 2% = 100%.

This means if you deliver say, a direct response insurance ad to 100 people (and you don’t know their renewal date) then on a good day, you could expect at best maybe 2 people to buy – assuming you capture 100% of the 2% of people in the market that week. You’ll be partying like its 1999 just because you made two sales. It’s pretty obvious to see why trying to sell single bottles of shampoo via digital channels won’t be profitable.

Given this market reality and the complete lack of involvement in online ads by website visitors, marketers should not be surprised that online ads rarely get one tenth of sweet FA worth of clicks. Any direct marketer worth their salt could have told them these ads wouldn’t pay off.

If you’re a mass marketer, in most situations, you’re generally better off not running ads online.

 

If you really want to do brand advertising, change the way you buy media and dominate web pages for long periods to create awareness. Do not simply run an online brand ad and measure it by impressions or click-through rates. Measure it as you would the ads in other channels. And never rate vanity metrics such as likes or shares or customer engagement. You’ll just waste your money.

Once you build your database you can then encourage your customers and prospects to download your app. Then you can gradually reduce how much you spend with online advertising, as more of your audience migrates to your app. You’ll still need to advertise though – read Byron Sharp’s “How Brands Grow” to learn why.

To get your customers and prospects to switch to your app, you’ll obviously need an incentive.

Where are those steak knives?

A throwback to Bryce Courtney and a different time in advertising…

14 Wednesday Feb 2018

Posted by in Advertising, Copywriting, Marketing, Media, Social Media, Thought Leadership

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Local ad industry legend and author, Bryce Courtney (deceased) used to write a weekly newspaper column called The Marketing Pitch.

In today’s buzzword-filled fake marketing industry, his articles would probably be labelled as “thought leadership delivered as part of a content marketing strategy, designed to increase customer engagement using earned media” – though I believe he was paid to write the opinion pieces, which would technically make it journalism.

In the real marketing world, his column is simply known as publicity.

I recently found this article titled “Today’s women are in a decidedly ugly mood“. It could never run today, but it shows how much the industry has changed in the last 25 years.

Imagine trying to publish this sentence today; “Hasn’t someone told a young woman that life is not a dress rehearsal and that you only get a few short years to be pretty and plenty of time after that to be plain looking?”

It was a different time back then. Click on the image to read the full article:

Less than one third of 2017 Super Bowl advertisers return in 2018…

05 Monday Feb 2018

Posted by in Advertising, Branding, Marketing, Media

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Edited since posting on 5th February:

Longtime readers of this missive, will be aware I post annually about the longest hour of the year – the Super Bowl.

It’s one of the marketing industry’s favourite events, apart from award shows. The accompanying statistics are always interesting too. The tonnes of chicken wings and hot dogs consumed, along with lakes of beer guzzled, always makes fascinating reading.

But there is one statistic I find most interesting. It’s the percentage of repeat purchase by marketers that advertised the previous year. In simple terms, here are the numbers:

2017 – 54 advertisers

2018 – 42 advertisers

Two things to note. The first is the drop in number of brands advertising. The number fell from 54 in 2017 to 42 in 2018. This is a decline of roughly 22%.

Secondly, is the number of repeat advertisers from 2017 to 2018. Only 17 brands backed up again in 2018. This equates to roughly 31% of 2017’s advertisers.

Or in other words, almost 70% of last year’s advertisers, did not return this year.

I’m not sure about you dear reader, but if I was selling a media opportunity that only occurred once a year, and only 30% of my customers returned for a repeat purchase, I’d be a tad concerned. But that’s just me.

I suppose if they sell all the space at an increasing rate, who cares if customers don’t come back? There’s always another sucker ready to believe the sales pitch.

Though I also get a kick (excuse the football pun) out of the fact that marketers use good old-fashioned public relations to promote their Superbowl ads. For those who’ve only worked in marketing for five minutes, that’s what you may know as earned media. Go figure, a marketer uses publicity to promote its ads. What’s old is new again, again.

I’ve also just learned of another alarming statistic:

64% of Super Bowl viewers are unable to connect a memorable ad to the brand it was advertising.

Research consultancy Communicus has been tracking and trying to measure the success of Super Bowl advertising for a number of years. Their latest research revealed 64% of Super Bowl viewers are unable to connect a memorable ad to the brand it was advertising.

It also revealed less than 20% of Super Bowl ads produce significant impact on the brand.

If this is correct, the obvious conclusion for advertising in the Superbowl, is that entertainment alone is not enough. When measuring the sucess of their Super Bowl advertising, marketers should focus on mental availability. Byron Sharp popularised the concept of mental availability. It is “the probability that a buyer will notice, recognise and/or think of a brand in buying situations.”

I won’t go into it any further here, but check out Byron Sharp’s book How Brands Grow for more insights.

I’m also confident that again this year there will be the usual over-hyping of how many people watched the game on mobile devices. It will be more people than 2017. And am sure the numbers will be almost statistically insignificant in the scheme of things. Television has no reason to be concerned.

Besides, there are dangers to watching a small screen when going to the loo at half-time, after sucking back all those Budweisers…

cell-phone-toilet

I know I dropped it in here somewhere…

And just because he is always spot-on accurate with his cartoon interpretations, here are a few of The Marketoonist’s classics about Super Bowl advertising:

Gotta go, I can hear the delivery van backing up to drop off the 100-kilo family pack of buffalo wings and hot dogs…

Adidas marketers should run around a football field if they want to sell footwear…

29 Saturday Jul 2017

Posted by in Advertising, Branding, Digital marketing, Marketing

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With much fanfare, the marketing clerks at Adidas announced they are no longer going to advertise on TV, as their target market is young and allegedly doesn’t watch TV. Their Aussie brethren repeated that announcement again this week.

It seems Adidas will only use digital channels for marketing to these young folk – completely missing the larger audience of active sportspeople still playing football, netball, jogging and much more, well into their 50’s. These people also have more money than younger people and will spend it on all sorts of branded goods.

they’ll spend money on anything…

I declare a hand here. I was once paid a few shekels to play football and eventually played for 40 years, so have bought a shed-load of boots, running shoes and clothing. I am a qualified football coach and assistant rugby referee. I coached juniors until two years ago, advising parents on what boots to buy.

I attend my kid’s rugby, basketball and hockey games, participating in team management. So in summary, I am a parent of, and involved with, the young sportspeople Adidas want to reach – not to mention a lifetime sports gear customer and person who showered regularly in male sporting sheds. Though that’s not a vision you need right now.

I’ve also worked on creating ads for sports drinks and sporting goods retailers, so may have some semblance of an idea about the market. Hence my humble opinion via the following points:

Point 1:
Young folk do watch large screen TV, often with an iThingo in hand. They love to watch sport on TV, as well as on smaller devices. So they do see TV advertising.

Point 2:
The lads play FIFA on PS4 which is where they see some of the coloured footwear of different players. This may have some influence on their choices. They also attend professional sport as fans, so they see what their heroes are wearing. Interestingly, sport brands rarely have pop-up stores selling stuff at these matches – where are the brand activation folk?

Generally though, their footwear decision is influenced by the following three things:

  • What their mates are wearing – if someone turns up to pre-season training wearing the latest lime-green boots, then that’s what they all wear.
  • The expert in the shoe store – Foot Locker or Athlete’s Foot – who advise on the best boots/joggers for their feet/sport.
  • The cost of the damn shoes – governed by my (or their) wallet.

The delusion that the only way to reach young sportspeople is via digital channels, is farcical. One has to wonder, what’s in the sports kool-aid at Adidas?

My kids (and I) have worn Adidas, Nike, Tiger, Puma and Asics. They are not loyal to any single brand. I was never brand loyal either, though admittedly I did prefer the Adidas Predator boot in my twilight years.

Craig Johnston, Aussie inventor of The Predator and proud mullet wearer…

More importantly…

Point 3:
This younger generation is responsible for the single biggest consumer protest in history. Around 700 million of them have downloaded ad blocking software to their digital devices, specifially so they don’t get any (Adidas) advertising. So am not sure who the marketers at Adidas believe will see their digital ads?

Stop that digital advertising…

Obviously, to overcome the issue of digital advertising not working, Adidas will create content and brand experiences for their customers. But they will need to spend money to promote the promotion, so to speak. They cannot rely on social media or WOM.

I suspect Adidas will awaken from its folly in good time. Maybe they should speak with P&G to learn how they lost $Billions in sales, when they moved away from TV advertising to Facebook advertising? P&G returned to TV BTW.

I’m banking on Adidas moving to a “footpath graffiti” strategy. They’ll hire street artists to paint the footpaths of the cities with Adidas branding – digitally activated of course. This will allow them to capture the attention of all those young people walking around staring at their feet and the ground, while on their mobile phones.

When said punter steps on an Adidas brand image, a RFID message will be activated on their mobile, instantly offering branded content -not selling anything, because as we all know, selling in the digital world is evil. This will make the punter’s life more fabulous, so they will fall in love with the Adidas brand. Don’t say you weren’t warned.

Gotta run – where are my Dunlop Volleys…

connect to me on the run: https://www.linkedin.com/in/malcolmauld/

If your marketing messages don’t appeal to idiots, you’ll fail…

05 Wednesday Jul 2017

Posted by in Advertising, Content Marketing, Copywriting, Digital marketing, Marketing, Sales, Social Media

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One of the best ways to check your copy before approving it, is to read it out aloud in a room on your own. The mistakes and clangers will almost always identify themselves as you read. Then you can fix them.

Better still, give your copy to an idiot or illiterate to read. According to the Adult Literacy Study, there are more illiterate people than smart people in the OECD.

The consequence of ignoring idiots is costly indeed. Because if you don’t communicate clearly, the idiots won’t understand your message and you miss out on most of your audience – and therefore most of your sales.

This brings me to the message that was put in my letterbox this week. Click on the image below to read it.

Apparently a family wants to buy a home in my street. They have roughly outlined what they are looking for and ask in the final sentence; “…please could you get in touch with us?”

But they forgot one thing. They didn’t include their phone number, an email address or even their name. We have no way of contacting them, even if we want to give away our home.

Idiots!

But this proves my point about checking your copy with an idiot. It now costs north of a couple of million dollars to buy in our street. So these people have money, even though they’re not smart. And an idiot’s money is worth the same as a smart person’s when it comes to buying stuff.

I have to get to a meeting now. Where are my car keys? Uh oh, I left them in the car – idiot…

Ad agencies and marketers continue to live in a parallel universe…

09 Friday Jun 2017

Posted by in Advertising, B2B Marketing, Branding, Marketing, Social Media, Thought Leadership

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Research released this week by ThinkTV claimed “people working for advertising agencies are out of touch, childless, share-housing, farmers’ market-loving, workaholic gym junkies, who overestimate the impact of social media and the internet on normal Australians.”

Me thinks it’s a pretty accurate persona, to use the modern vernacular.

Of course, the consequence of the frame of reference from which agency types view the world, is how it influences their creative and media decisions in quite biased and dangerous ways.

I was on the end of this type of thinking when talking with a marketer in charge of selling “enterprise solutions” for a telco. In layman’s terms this means she flogs large phone systems to big companies through consultative selling. The reason she was asking my advice was the fact her sales were tanking and she couldn’t get leads from her digital marketing in LinkedIn and banner ads on other sites. True dear reader.

I was showing her some interactive 3D mail examples from US telcos that worked really well to generate qualified leads, particularly when supported with telephone follow-up. She stared at me bug-eyed and said “mail and telephone for B2B marketing are just not on my radar, everything’s digital these days and the agency would never go for it“.

I was taken aback, because as she spoke, I saw something flapping outside her window.

Everything’s just digital these days

The real problem with this advertising agency parallel universe is that it’s not new. The industry has lived in it for decades and not learned from its mistakes. I remember a survey in the 1980’s that demonstrated how out of touch the people who worked in advertising agencies really were.

One revelation was that agency people assumed everyone leased cars and bought their groceries on their fuel card in Shell Shops and 7/Eleven stores. Why go to Woolies?

I also had a marketing assistant at that time, who eventually became a partner in an ad agency (must have been the training). She lived in Sydney’s eastern suburbs and abjectly refused to travel west of George Street in the city. “the only time I go west is to get to the polo and then someone drives me“, she proudly exclaimed.

So here is the latest parallel universe of Adland – it goes part of the way to explaining the massive amounts of money being wasted in digital marketing channels.

The key is as follows – view the charts and weep:

  • Adland = Yellow
  • Adland’s estimate of public use = Dark blue
  • The public’s real use = Light blue

This article in yesterday’s press let the facts speak for themselves. For example, when asked to estimate how many people watch Netflix weekly, Adland said 80%. Yet apparently only 28% of “normal” people use Netflix weekly.

Gotta go now and do my weekly mentoring of young agency talent. Where’s my Tardis?

Would you encourage your children to work in marketing? I doubt it…

20 Monday Mar 2017

Posted by in Advertising, Branding, Digital, Digital marketing, Email marketing, Marketing, Marketing Automation, Media, Social Media, social selling, Telemarketing

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Some of you may have noticed I haven’t blogged for about three months. I decided to take time out to observe the industry through rose coloured glasses and find some positive examples of advertising to share – regardless of channel. I might as well have tried to climb Mt Everest naked. Sorry for that vision folks, but that’s how difficult the task has been.

Because when you stop for a moment and take a gander, the sight is really sad.

I’ve spent most of my life working in marketing in one way or another – as a business owner, running marketing departments, running agencies and educating executives and students. Never in my experience have I known the marketing industry to be so shonky, shoddy, dishonest, artificial, delusional, self-destructive and downright on the nose.

Why would anyone want their children to get a job in marketing? It’s become an embarrassment to say “I work in marketing”. You might as well say “have you met my parole officer?”

The growth in deplorables (to steal a recent popular word) is directly linked to the rise of the digital marketing industry and all the charlatans it has attracted. It seems they’re all drinking the same kool-aid and believing their “owned media” to use a digi-buzzword. Their mantra is one of the oldest on the planet “a sucker is born every minute” and it’s easy to chant when the suckers, sorry marketers, are hooked on FOMO and fashion.

Everywhere you turn there are examples. And it’s been getting worse every year. I produced this parody video in 2011 to promote an event, partly because like many, I couldn’t find any facts to support the outrageous claims about online usage by consumers.

Then this book was a best seller in 2012. I cannot find any similar publications claiming analogue channels to be so dishonest.

The first abuse of a marketing channel was the telephone and this was countered by government and industry with “do not call” registers. The problem with telemarketing was not so much dishonesty, rather it was the frequency of unsolicited calls into people’s homes.

The spiral to dishonesty started with email marketing. The scams, abuse of privacy, illegal use of email addresses, spreading of viruses and frequency of messaging, created so many problems that governments created anti-spam laws as well as data privacy legislation. Email continues to be abused, with most people now having a daily ritual of deleting unsolicited or irrelevant messages.

Here’s a quick snapshot of the marketing industry as we know it today…

The fake internet is growing so fast it will be one of the biggest online industries in less than a decade. Bob Hoffman, another lone but increasingly louder voice in the wilderness, has been very vocal about the fraud in the online advertising industry. In a number of articles, he has revealed that the percentage of clicks on online ads by robots, varies from 30% and up to 90%. Agencies have no way of telling how much “traffic” or “clicks” are by robots, as even the publishers themselves don’t really know. Yet marketers are charged for this fraud.

Then there is the “fake profile” industry. Software can now create social media accounts for anything connected to the internet. So your grandmother’s new fridge, or your sound system running from an app, will be hacked and a profile created using the device’s unique IP address.

The fraudsters then buy fake followers, they cost as little as $2.00 for a thousand, and create a fake following. The “profile” then publishes fake content, either stolen, or created by slaves with no subject expertise, working in Eastern Europe, the subcontinent, or South America. Ad space is then sold on these “fake profile” sites to computerised advertising networks. Marketer’s ads then appear on the sites, with the marketer being none the wiser.

As the system is fully computerised and rarely has a human eye to analyse it, the ability to scam the programmatic ad networks to create fake sites and earn automatic “fake revenue” is huge.

But the digital marketing industry seems uninterested in addressing the issue. One of the drivers behind this lack of interest is that very few marketers care. They never look at their digital analytics. It’s more important to be seen to be “digital” and mediocre, than to be using digital channels profitably. An Australian report suggested more than 60% of senior marketers didn’t bother looking at or using the analytical data their digital marketing generated. So they have no idea what works or what fails.

Media companies have now admitted they have been falsely charging for online advertising and are returning $millions to clients, rather than face messy legal action. Dentsu was the first to raise its guilty hand.

I have one client about to go to court with its global media agency because the agency refuses to use the client’s programmatic advertising account. The reason is simple. The moment the client gets access to the account they will discover how much they have been ripped-off over the terms of the contract to date. It seems the agency is hiding behind a clause in the contract that says bookings must be on its account. The media agency would rather lose the client’s business across the globe than be found guilty of fraud.

Facebook admits it has overstated video viewing by as much as 80%.

Sir Martin Sorrell has called out Google for unwittingly allowing advertisers to subsidise extremist terrorist sites with their advertising.

Proctor & Gamble, the largest media advertiser in the world is threatening to stop advertising online unless the industry starts to act honestly and ditches its self-interest. P&G has already reduced its Facebook spend because it resulted in an appalling loss of revenue and market share.

While French media agency Havas has followed suit and pulled all advertising from Google and the YouTube platform until they “deliver the standards we and our clients expect”.

An active Twitter user is someone who accesses their account once a month – and there are more inactive accounts than active ones. #whybotherwithtwitter

FYI Google, YouTube, Twitter, Facebook and LinkedIn remain the major publishers that continue to refuse independent auditing of their platforms. Whereas all the major analogue publishers have always participated in independent auditing as part of providing a legitimate service to advertisers.

How did it get so bad? I suspect that one reason is the fact so many people claiming to be digital marketers know nothing about marketing and just a little bit about binary coding. They have no respect for marketing, dismissing it as “just part of the process” for anyone who can use a keyboard. Or they’ve read a definitive guide and so have become a definitive expert.

I was in a meeting with a digital marketing manager who stated with authority; “a brand is just the logo taken to the next level“. But he did it with such conviction the juniors in the room took notes – I just shook my head and asked for more coffee, as it was the only drug available.

Creative thinking is not valued. Instead, you just need to Google “world’s best example of…” and then copy the ideas for your client or your brand. The result of following the “God called Google” has been a devaluing of creative talent.

And while BIG DATA is the latest trend, most marketers and their media agencies don’t analyse data. They don’t know what works and what doesn’t. They talk about data and even produce spreadsheets, but they don’t study the data to gain knowledge. Instead, they worship at the social altar of “likes” and “followers” and some nebulous term called “engagement”.

The digital channels allow you to predict the future, so you can make more money, or earn the same amount for a lower spend. They put more knowledge in the palm of marketer’s hands than any other channel. Yet nobody seems to care.

Though here’s what some major advertisers say about social channels after analysing them:

Unilever has said its social media results are about 50% as good as traditional POS advertising and other retail promotions. While Coca Cola ran its usual metrics through its social media and saw no difference in sales as a result of social content. Westfield shopping centres stopped social media advertising, as results and research revealed its customers preferred printed catalogues.

As Bob Hoffman published recently: in a study by the American Marketing Association, Deloitte and Duke University, more than 88% of marketers surveyed said they could find no measurable impact from social media marketing. While Forrester Research reported that only 0.07% of one major brand’s Facebook followers ever engage with one of its posts.

It can probably be best summed up by Coca Cola’s Head of Global Marketing, Marcos de Quinto who said; “Social media is the strategy for those who don’t have a… digital strategy.”

Yet in a recent industry debate with Mark Ritson about social media, Adam Ferrier, one of Australia’s brightest advertising talents, said “…These other two businesses – Uber and Airbnb – would not exist without social media.” I can only assume he said it because he was forced to support his side of the debate, as nothing could be further from the truth.

Uber has mainly used traditional public relations in mainstream media, plus social media to create awareness. Though as revealed here, Uber’s secret new business tool is good old-fashioned print. While Airbnb is a major user of TV advertising, email, network marketing, print and most recently talk-back radio targeting pensioners. The radio ads use pensioners to encourage other pensioners to top up their pensions by becoming an Airbnb host – strangely it says nothing about tax implications? Just as Airbnb pays no tax in our country.

So Uber and Airbnb cannot exist without analogue channels. Social channels are just a sideshow in the scheme of things.

Rumour has it, Unilever is removing the term “digital” from all marketing job titles, as they’ve finally woken up to the fact the job functions are about marketing, not about channels. After all, nobody ever called themselves a “Male Urinal Advertising Manager” just because they placed ads in the specialist channel of troughs in public and commercial toilets used by men. If you’re female and confused, ask a male colleague.

Smart marketers are realising that just sticking solely with digital marketing channels is more often than not, a mistake. For the best results, you need to promote across numerous proven channels, and run tests to determine the best ROI – just as marketers did prior to the internet.

Have to go now and prepare to teach young university marketing students. Might recommend they look for an internship at Long Bay Correctional Centre if they want a successful career…

 

Let’s connect https://www.linkedin.com/in/malcolmauld/