April 23rd, 2009 §
The automotive industry – caught in the grips of a recession and poor management – is turning to “cheaper” social media en masse.
I took at close look at Ford’s new “Fiesta Movement” social media campaign in a prior post (Ford gave Fiesta cars to 100 people who were supposed to report on them via Twitter, Facebook, Flickr, etc).
In that article, I suggested some companies were accelerating their switch to social media precisely because their situations were so dire; those with little to lose often take the biggest risks.
Here’s a little more evidence for the pile: (from the Truck blog) Automotive Online Advertising Up, Print Media Is Dead
Automotive online advertisement is on the rise and print media is officially a lost cause. Over the course of 2008, advertising dollars spent for television rose 2 percent, Internet spending up over 55 percent, and radio & magazine advertisements were down over 40 percent combined. Analysts predict that the internet will become the second largest advertising channel by 2010 with television leading the pack at three quarters of the total advertising dollars spent each year. Nielsen Online says “The key to successful Internet spend in 2009 will be identifying where your target audience goes online and interjecting yourself at the right moment in the vehicle purchase funnel”.
As the recession drags on, expect to see more companies switching budgets to social media. And yes, expect to see even more new media carpetbaggers “Social Media Consultants” emerging from the woodwork, sensing the potential for a quick buck.
Keep writing, Tom Chandler.
social media marketing, social media, online advertising, print advertising declining
April 22nd, 2009 §
In the era of engagement, how is online advertising faring? And why are clickthrough rates on social media sites so abysmal?
And is the ad-driven business model – the economic engine that was supposed to power the “everything is free” Internet – destined to underperform?
It doesn’t look good (at least according to Eric Clemons at TechCrunch):
Why Advertising Is Failing On The Internet
The expected drop in internet advertising revenues this year was neither unpredictable nor unpredicted, nor was it caused solely by the general recession and the decline in retail sales. Internet advertising will rapidly lose its value and its impact, for reasons that can easily be understood.
Traditional advertising simply cannot be carried over to the internet, replacing full-page ads on the back of The New York Times or 30-second spots on the Super Bowl broadcast with pop-ups, banners, click-throughs on side bars. This might be a subject where considerable disagreement is possible, if indeed, pushed ads were still working in traditional media. Mostly they have failed.
What gives? Why is all the nifty social media advertising falling short?
This Isn’t Newspaper or Television
The rub is this: feeding advertising to a television or magazine viewer is an attempt to “interrupt” a passive viewer – one who enjoys little control over their experience beyond the binary (watch, or stop watching).
By contrast, online users have a great deal of control over their experience, and they’re typically actively engaged with getting what they want.
A comparison? Imagine a shopper idly browsing a store. Now compare that shopper to one intent on locating a specific item; the latter is more engaged with the search, and less likely to be distracted.
Engaged readers – not passive consumers – are the explanation for the dismal clickthrough rates on most social media sites.
Social media users aren’t a passive consumers of information, but participants in a community. Unlike non-interactive media, they’re intent on not only receiving information, but acting on it.
And unlike yesterday’s passive information consumer, they also demand to be heard.
If you don’t believe me, try this experiment: Create a blog filled with controversial posts, and then limit the responses to an arbitrary 100 character length.
Stay engaged, Tom Chandler.
engagement marketing, online advertising, engagement, failing advertising rates
March 16th, 2009 §
Engagement marketers sometimes struggle to quantify the value of an engaged customer; it’s not as simple as toting up the day’s receipts.
Yet Bravo Media (whose many blogs were were profiled on the Engagement Principles) says its viewers are broadcasting’s most engaged, and provides a brief glimpse at engagement’s economic rewards in a New York Times Magazine interview (a profile of Bravo head Lauren Zalaznick):
“We know for a fact Bravo is the most engaged network — the most people who see a commercial on Bravo, of any other network, remember that ad and think more highly of a product! So think about that statistic! That statistic is true!” Sixty-three percent of Bravo’s viewers recall the name of the brands they’ve seen advertised on Bravo, and 26 percent say that after seeing a product placement on Bravo, they have an improved opinion of the product.
“That’s nuts, right?” Zalaznick says. “But what’s my job? My job is to entertain people and deliver a bottom line at a company. Now I’ve done both, and I can punch the clock, punch out and go home. I’m done. That was my shift.”
Are Bravo’s readers engaged simply because of the programming? Or is it because Bravo’s site is loaded with blogs and interactive media – and its reality “stars” are more accessible to fans?
Whichever is true, what’s clear is that engagement pays, even when the economy is in the grips of a downturn:
Like everyone else, Zalaznick has been trying to figure out what the new economic reality means for what she sells, and to whom she’s selling it. “For two years, we’ve been thinking to ourselves and saying out loud in strategy meetings and in elevator rides, hey, ours is the most affluent, most educated cable entertainment audience … what happens if they’re less affluent? What do we do?” Zalaznick said from her office late last month.
Stay engaged, Tom Chandler.
engagement marketing, bravo, bravo media, engagement metrics
October 21st, 2007 §
Interrupt marketing isn’t dead. It’s just receiving fewer marketing dollars, and the trend away from traditional media channels is picking up steam — and fast.
Marketers want to engage customers, and Nike — the one-time interrupt marketing monster in the sports world — is betting on social media and engagement marketing (where brands engage with the passions and values of their customers).
In an excellent New York Times article, the extent to which Nike’s channeling its marketing budget into engagement marketing becomes apparent:
» Read the rest of this entry «
April 12th, 2007 §
Where do ad and PR Agencies fit in the age of engagement?
Don’t ask — most don’t seem to know. This story from the Black Star Rising blog (the blog of the Black Star photo agency) reveals the changes faced by ad agencies, and how their traditional business model is under pressure:
The advertising community is scared and doing everything it can to delay the inevitable. The goal of agencies is to convince the companies that pay them big bucks to produce major national campaigns that such campaigns are the best way to sell products and services. Unfortunately, the results for dollars spent are in steady decline and companies will only buy this argument so long.
Consider this little story told by Jan Leth, executive creative director of OgilvyInteractive North America. The agency was assigned by Six Flags to do a promotion for the amusement park’s 45th anniversary. “They wanted to give away 45,000 tickets for opening day to drive traffic. So we got a brief to do whatever: ads, microsite, whatever.” While the creative people were trying to plan the project, the creative director went off and posted the ticket giveaway on Craigslist.
“Five hours later, 45,000 tickets were spoken for,” Leth said. “No photo shoot. No after-shoot drinks at Shutters,” and with some irony he continued, “Now, the trick is, how do we get paid?”
Nobody’s going to pay an agency big dollars to post ads on Craigslist. And imagine what could have happened if Six Flags had built a solid e-mail list and a high-traffic blog (they don’t blog).
Six Flags wouldn’t have called the agency at all. How would Ogilvy get paid for that?
Technorati Tags: engagement, advertising
