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Posts from September, 2007

Something New Hits the Social Mix

Sep 26

Don’t look now, but something interesting is happening in the sprint to garner user attention through social networks. And it’s not MySpace or Facebook or any of the other well-known players in that market that appeals to web users who want to find mirror images of themselves online.

No, it’s coming from people whose names aren’t quite as new and “techie” sounding … folks like eBay and Yahoo, for instance. People with nice, familiar, “safe” sounding names. The people we’ve all been interacting with for some time now.

Now they’re adding networking, allowing their users to share their interests with others … in other words, to socialize. This is quite different from the early days of message boards. It’s the MySpace model, if you will, and it’s a brilliant idea to capture audiences of people who will be able to view their online destinations as their social networks.

I say “brilliant” because this seems an almost obvious step that could have been lost in a “can’t see the forest through the trees” oversight, albeit one that took much longer to develop than one might have thought. It’s the brave new world that looks beyond just attracting the millions of web users out there, but keeping them around to read ads and spend money. All together, that’s what marketing is all about.

But before just handing the “marketing genius of the year” award to any of our favorite oldie but goody web destinations, they’re going to need to demonstrate that they not only understand the importance of social networking, but how to make their messages relevant to the audience they hope to draw … and keep. We all know the web is a quicksilver world where users appear and disappear in a flash if nothing interests them — often never to return.

The challenge now lies in the testing and re-testing of messages and techniques that will allow eBay and others to succeed in becoming true social experiences. This one is worth watching. Stay tuned!

Grant Johnson

Johnson Direct LLC

800-710-2750

AD Spending Falls Again. Is that a Good Thing?

Sep 20

It’s all relative.

One of the reasons may be a recent internet posting I read that stated that niches are irrelevant. It made me laugh. By not understanding that understanding your segments (niches) is vital, you make your advertising irrelevant and thus it becomes less effective and people don’t buy what you are selling.

Thus, a lesson in knowing that relevancy today is THE key metric that makes people want to buy what you have to sell.

Stated concisely: talk to me like you understand me and I am much more likely to respond to your advertising and buy your products/services.

Some advertising “professionals” simply don’t get it. Advertising and marketing today is a bottom-line, P&L function with C-level attention, not an “expense” that must be incurred.

United States advertising spending has fallen for the second quarter in a row, which hasn’t happened since 2001. And that has some people acting as if the sky is falling.

But it’s actually a good thing.

Advertising spending in the US measures the dollars spent in traditional paid media … newspapers, magazines, television and radio. And while it is true that advertising has fallen in these areas, smart American companies are devoting more and more of their efforts to the “new” media … word of mouth, conversational marketing, and such new and exciting outlets as YouTube.

The Mobile Marketing Association says that by 2008 nearly 89% of brands will use text and multimedia messaging to reach their audiences. Nearly one-third are planning to spend more than 10% of their marketing budgets on advertising in the medium. Again, that’s just by 2008.

The baby boomer generation will grow by 25% in the next decade. As our population ages, it will become more multicultural and increasingly cynical toward traditional sales messages. Much like GEN Y.

If you don’t understand “social” media, now’s the time to start learning. Because consumers want product information, but not necessarily advertising. Perhaps the most important role any company can play now is to get out of the way and let that happen. Consider using word of mouth as media. It’s all about creating generations of conversation. Remember this thought … awareness + worth of mouth = results.

The natural order of things is changing in marketing and advertising. While it isn’t surprising that “traditional” media spending is down, online ad spending is up nearly 33%, according to 24/7 Real Media, Inc. That means that marketers need to understand digital media options and how to design for the “new” media.

Since we’re in a period of transition, it might be wise to consider integrating the “old” with the “new.” I’ve often recommended doing “split” direct mail, in which one audience receives one message about a product or service, and another receives a different one. Then we measure which message works best. Sometimes there’s no clear-cut winner.

In some cases, using both old and new media may be the best tack. Combining direct mail with a dedicated microsite, for instance, is a very workable and sensible way to integrate both offline and online media. Again, though, the message, however it’s communicated, must be relevant to the audience.

Automobile makers market to people of nearly all ages. Clearly, though, the top of the line, $50,000 luxury sedan is not intended for the recent college graduate. The same automaker, however, probably manufactures another vehicle that is desirable to the younger audience. You’re not often going to find both audiences reading the same magazines or watching the same television shows, so you might want to target the young audience through a viral marketing campaign and the more mature audience through magazines such as AARP. The intent is the same … to sell cars. The message will differ. Automakers are among those leading the way in moving dollars to customer relationship marketing and word of mouth.

Must every single potential page in the vast universe of the web try to sell you something? No, but if you’re not investing in the web as a direct response marketing tool, you’re missing the boat. Don’t think your kids are just communicating with each other when they’re online … they’re seeing and responding to the “new” advertising.

The winds of change aren’t just blowing. It’s getting downright gusty in here!

Grant Johnson

Johnson Direct LLC

800-710-2750

Should We Remember 9/11?

Sep 12

September 11 is a day that should remain in the hearts and minds of all decent and caring people, regardless of nationality, religious beliefs, and even regardless of the pain.  And yet, in a CNN.com online poll yesterday, more than 50% of respondents felt it was time to cut back on major 9/11 observances.

In a way, that’s understandable.  We don’t want to remember the horror, the shock, the grief.  After all, generating those emotions plus lasting fear, were major goals of the terrorists who attacked us that fateful day six years ago.

Understandable, yes.  But right?  No!  We should no more reduce our reflections on that awful day any more than on Pearl Harbor Day.  Countless lives were lost, and many more were destroyed in other ways, for no good reason at all.

We all remember where we were and what we were doing when the planes hit the Twin Towers and the Pentagon … when courageous and frightened passengers forced down another hijacked plane in a Pennsylvania field, sacrificing their lives to prevent even more disaster.  No matter what our political affiliations might be, no matter what we may think of current American policy, we should not … cannot forget.

In whatever way seems appropriate to you, remember our country’s darkest day.  And offer thanks that you, and yours, are still here and still able to hold on to one another.

Grant Johnson

Johnson Direct, LLC

800-710-2750

Direct Mail Could Save Society!

Sep 05

From time to time, I wonder “What if?” We all do it. What if JFK had not been assassinated? What if someone had anticipated the attack on Pearl Harbor? Or 9/11?

But I also wonder “What if” from a marketing standpoint. What would we do if …? So, from time to time, I’m going to pass along some thoughts on various aspects of marketing and what might happen if …

We all get so-called “junk” mail and sometimes wish it would all just go away. But, what if Congress were to pass a law establishing a “no direct mail list,” similar to the “no call list” that changed the face of telemarketing?

Direct mail has been, is today, and likely will continue to be a mainstay of direct response marketing. Why? Because it works. But, suppose it all went away tomorrow. What would happen then?

First, many non-profit organizations would face a financial crisis of unimaginable proportions. Despite their attempts to move away from both event and mail-generated fundraising, they simply cannot survive without it. Johnson Direct is proud to work with one local non-profit client to raise approximately $1 million per year through direct mail. Without direct mail, many of their programs could cease to exist.

Companies that rely on catalogues would scramble to find new ways – not necessarily better ways – to reach their customers and potential customers. Do any of these names sound familiar? Drs. Foster and Smith. Breck’s. The Literary Guild. Omaha Steaks. Victoria’s Secret.

Magazines would no longer be able to use direct mail to solicit subscriptions. They might be forced to go door-to-door, harkening back to the days of the Fuller Brush Man!

I recall a story from early in my career about a guy who absolutely, positively despised all the “junk” mail he received. So, they had him collect all of his mail for a month and started going through it. He said “It’s almost all junk mail!” So they took away his Lands’ End catalog and he said “No, you can’t take that, that’s MY Lands’ End catalog!” Then they took away his grand opening event piece and told him he could not attend. Then, on to the Harry & David catalog and he became increasingly frustrated.

He really did like, and even purchased from the “junk” mail he was receiving.

Mail gives us a sense of self-worth. Have you recently gone to the mailbox only to find that you had not received any mail that day? Your first question is usually “Is today a holiday? Why didn’t I get my mail?” You’re surprised that no one noticed you or tried to sell or inform you. Admit it.

Take away direct mail, and jobs would be lost. Top flight marketers could end up fighting teens for desirable jobs in the fast food industry. Family lives could be damaged. Social service agencies, already straining to fulfill their missions, might find themselves swamped with a suddenly gigantic caseload as everything from jobless-related mental depression and economic depression set in.

Still want to get rid of that “junk” mail?

Grant Johnson

Johnson Direct LLC

800-710-2750

Things I Think I Think About Marketing

Sep 04

I think marketing today needs to be measurable.

I think marketing is ever-evolving, yet one thing always seems to be worth investing in … direct mail.

I think marketers need always to present their “real” selves to clients and potential clients … not a false front.

I think “creative” marketers are missing the point … sell the client’s product/service, not your whimsical ideas.

I think marketing is only on the verge of an explosion in “new media,” and we better get prepared for the tsunami if we want to satisfy our clients’ needs.

I think some large marketing firms are too arrogant for their own good, ignoring the best interests and wishes of the client.

I think some small marketing firms need to carve out a niche for themselves, rather than trying to be all things to all people.

I think the best marketing firms are selective about their clients rather than trying to land every piece of business that exists … they look for clients who will respect them as partners.

I think public relations is a highly effective direct response marketing tool.

I think we will continue to see a shake-out of firms that do not measure, track and analyze the work they do.

I think testing is done far too seldom in advertising and marketing.

I think integration is crucial to marketing success today.

I know the positive results measuring your work can have. I think …

Grant Johnson

Johnson Direct LLC

800-710-2750