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Old School Ad Execs Sweat as Data Geeks Displace Them

With a sense of wry review to a reasonably interesting article in today's WSJ (by Suzanne Vranica and Christopher Stewart--one that profiles the certainly-changing advertising industry landscape, and the diminished roles of wannabe Don Draper-types, below is one of several dozen comments posted to the WSJ online version of the article:

Accusing the ad industry's embracement of technology for being the cause of the downfall of martini-drinking creative geniuses in the ad industry makes for a great story, but the lamenting by those profiled in the article, i.e. those who find themselves without a seat is part sour grapes and part "I'm in the 80-20 Club" mindset...i.e. those that thought punching a clock without being truly relevant was a ticket to that second home in Aspen.

To best frame my observations re: a good snapshot, I should first preface that I speak from perspective of someone who spends considerable time on the fringes of Don Drapper’s Madison Avenue—but only after a more-than 15-minute career within the bowels of Wall Street, where my role as a “exchange floor specialist” had me bringing buyers and sellers together.  That role has long since become “electronified” and to a great extent, very specific human tasks associated with that role have been diminished, and in many instances, extinct from human interaction.

As poignantly observed by one creative blogger’s posting immediately subsequent to the announced merger between Publicis and Omnicom, the CEO of Omnicom referenced the combination of these two firms akin to building the next NASDAQ Stock Market; which was actually a somewhat narrow view of how the advertising industry will likely evolve.

Two of the 2 dozen online comments posted below your website edition of today’s article—those made by Mssrs. John Hooper and Bill Brown-- were perhaps the most well-thought out.

Notwithstanding the evolution of the global equities markets, the role of those who provide marketplace insight has remained a critical component. Buyers responsible for allocating significant capital remain reliant on trusted relationships, albeit those folks now necessarily need to be equipped with metadata talking points; but the human relationship remains paramount.

The buying and selling of highly-commoditized products obviously lends itself to automation and “AI”. Mid-level ad buyers will deservedly need to re-tool or seek other roles; much of what they do is better done via transparent electronic platforms. But, the creation of compelling, response-inspiring ad content that must not only conform to microscopic-sized screens or 70-character shout-outs or single images, but actually convert the viewer into an on-line shopper is, in this opinionator’s opinion, a holy grail that is still far from the reach of ET, AI or any other form of unearthly intelligence. The odds of someone introducing an insertable device that prompts delivering electronic messages to the brain that in turn, causes purchases to be made, are less slim than any AI will create crisp content that compels a call to action. Caveat: Simple phrases like “Buy this now, you schmuck! Because you deserve it!” will still inspire broad brand recall and the consumption of billions of dollars worth of burgers, cigarettes and booze.

The take-away: much like the way computer algorithms have become a defacto part of the financial market world of buying and selling, and much like similar tools and processes since embraced in other industries, the buying and selling of mid-level advertising placement budgets will be consigned to computers. The ability to deliver content that (I) creates recall and (ii) most importantly--converts into consumption within a new “Honey I Shrunk The Kids” landscape is wear the rubber will meet the road for those neuroscience-induced lab rats hiding behind quant guru pocket protectors. 

Delivering the right ad at the right time to the right place is as simple as securing an exclusive sponsorship deal with FB; tell me your story and why I should buy you within a 1 inch square space is not going to happen easily or quickly. And just as important, bulge bracket buyers—those allocating tens of zillions of dollars are always going to require a big fat, medium-rare steak..and ideally, front row seats at the next Knick game. The Advertising King is Dead, Long Live the King. 

P.S. Facebook actually doesn’t seem to have ‘exclusive sponsorship’ opportunities—such as a flower industry sponsored call to action that any marketing guru would expect to appear within the same ‘alert notification’ that’s displayed when  your mom, your daughter, your wife, your girlfriend, your mistress is about to celebrate a birthday or other occasion. “Today is your mom’s birthday—click here for the Facebook Endorsed Florist—It’s Low-Priced and High Quality!”… Trust me when I suggest that a computer can’t come up with that idea and a computer can’t pitch it to the knuckleheads at FB that think they’ve now got their mojo in mobile. 

       

Jay Berkman

JLC Group

Blogger Scoops Ad Industry MegaMerger; #Omnicom Chief Likens Ad Business Model to #Nasdaq

Hiding in plain site 2 days ago (Saturday afternoon's NYT digital version), we noticed a blurb/ brief mention of what was obviously the biggest merger in the history of the ad industry. Somewhat surprised that this blogger was the first to 'tweet' it, and even more surprised that the story didn't make the Saturday evening news or the following Sunday morning newspapers, we figured that Perry White must have been on holiday in the Hamptons.

Seems we were right on both counts. Omnicom and Publicis Groupe's plan to marry is the MadMen Industry's biggest event since...well certainly since Darrin Stevens took over McMann & Tate and Samantha blinked Tabatha to walk on the moon for a Kodak commercial..

After senior editors and reporters returned from their summer weekend, the 2 day old story appeared on this a.m.'s NYT front page, but only because WSJ cub reporter Jimmy Olsen apparently sent his girlfriend and NYT columnist Lois Lane a txt msg that read: "Ad Industry Merger: "Market Moving to NASDAQ Model" Says Designated Madmen Mogul.".

And the rest, they say, "is history" [in the making]. Jimmy Olsen will undoubtedly be charged by a joint task force led by Eric Holder and Preet Bharara for disclosing insider information. Lois Lane can be expected to be arraigned later today for conspiracy to disclose confidential information that Nasdaq has already negotiated to acquire the merged entity after the merger passed muster with the FTC...

The SEC of course has already put out a statement : "We've heard nothing, we've seen nothing and we know nothing ...about any disclosure of non public information involving any of these very public companies...." An SEC spokesman added (without being authorized to speak or think), "If Nasdaq has actually played a role in bringing these two ad agencies together in anticipation of acquiring that new entity so they could dominate the buying and selling of ad placements via an electronic market...well..that sounds good to me!"

Boon-Time for Marketing Gurus: Business Owners Are Planning Marketing Blitzes After SEC Action on Unregistered Shares

Today's WSJ Small Business column does a good follow-up re yesterday's post re SEC embracing the JOBS Act..

As a result, some entrepreneurs with businesses ranging from ride-sharing apps to portable farms (to hedge funds!) say they're planning marketing blitzes that they hope will help them reach the right target audiences of potential investors. Under consideration: putting investment offers on billboards and even printing them on T-shirts.

"Whoever has the slickest ads will make the most money here," says Heath Abshure, president of the North American Securities Administrators Association.

Enough said. Until of course, there is a proliferation of frauds and scams--situations that the SEC has little ability to prevent before it happens; best evidenced by the Madoff scandal.

Hedge Fund Advertising Strategies Uplifted by SEC

We told you so..(8 months ago!)..
In connection with last year's passing of the JOBS Act, today the SEC is expected to officially approve a new rule that would ease 80 years of advertising restrictions on ways that hedge funds and other companies seeking to raise money through private offerings.
 


The rule would ease 80 years of advertising restrictions that help ensure small investors aren’t lured into taking inappropriate risks. Under the new rule, startups and other small companies would also be able to use advertising to raise unlimited amounts of money.

“It changes the whole paradigm of who you can talk to,” said Brian J. Lane, a former division director at the SEC and now a partner at Gibson, Dunn & Crutcher LLP in Washington. “Hedge funds will benefit because they have the most restrictions on their ability to communicate more broadly about different funds coming to market.”

The rule affects how companies raise money through private offerings, which are exempt from requirements to publicly report financial statements. Private offers are restricted to wealthy investors, who are considered better positioned to understand the risks of investing with less information.

For the full story from Bloomberg LP, please click here

Memo to Corporate CEO's & CMO's: Why FB Bought Vine: Because Its ALL About VIDEO, Stupid!

For you corporate chiefs and marketing czars who somehow missed the most poignant and succinct explanations [courtesy of more than a few Fortune CMO's and global branding experts] with regard to this week's Facebook Incs (NASDAQ:FB) purchase of Vine, and the strategy to incorporate that video toolkit into Instagram--here it is, in a nutshell--courtesy of the smartest marketer in the world (SMITW):

"Its all about video. Any corporate executive, any entrepreneurial leader of a fast growth company, any senior capo of a B2B enterprise, whether within the financial services space, the legal industry, the accounting industry, the professional services industry, or anyone advising executives who strive to distinguish themselves among the clutter needs to understand that if you are not delivering a corporate message via video, whether its 16 seconds, 60 seconds, or 90 seconds--you've outlived your usefulness to your organization."

You'll notice that above comment included 'financial services'..for you sell-side investment bank and brokers, buy-side investment managers and advisers, and let's not forget all of you fast-paced hedge fund marketers who need to spend the next year or so wrapping your arms around compliance issues before shining a brighter light on your value proposition--here's a news flash that isn't being repeated on CNBC: You've already been 'lapped' by competitors who are already on their 3rd iteration of videos in which their company executives and staff are shining brightly on a video screen near you--and one that's presumably nearer to the clients that you would like to impress.

Case study courtesy of NorthStar Financial, one of the financial advisory industry's most recognized brands: Not only did the folks at this Omaha-based, "Land of Buffet" financial behemoth  figure out the power of video messaging well ahead of their peers, this multi-legged enterprise, which serves a broad spectrum of registered investment advisors (RIAs) created a captive digital media production company (Advisor Studios) to punch out compelling B-rolls for RIAs and the assortment of other NorthStar clients and strategic partners who want to step up their branding and marketing.

Below is an illustration of the latest B-roll to come out of Advisor Studios..a great B2B piece that was produced and edited with more than solid skills.

And, Yes, for you skeptics that don't swallow endorsements or testimonials easily, there certainly might be more video production firms to choose from than there are pizza parlors and donut shops. That doesn't mean they are all as good as Advisor Studios--or--for those in the New York tri-state area, we have 2 favs--Simba Productions and MediaPlace

Your Web Display Ads: Not Displayed?!

Courtesy of WSJ reporter Suzanne Vranica..

The old adage in advertising—that half the money is wasted but no one knows which half—turns out to be as true for the digital world as it ever was for traditional media.

An astounding 54% of online display ads shown in "thousands" of campaigns measured by comScore Inc. between May of 2012 and February of this year weren't seen by anyone, according to a study completed last month.

Don't confuse "weren't seen" with "ignored." These ads simply weren't seen, the result of technical glitches, user habits and fraud.

The finding implies that billions of marketing dollars are being poured down a digital drain. Last year, $14 billion was spent on online display advertising, estimates eMarketer, 40% of all online ad spending.
Advertisers can blame both technical snafus and more nefarious factors for ads going nowhere. Technical issues include ads being displayed on part of a browser not open on a computer screen—such as when an ad appears at the bottom of the screen and surfers don't scroll down. Another problem: Some ads load so slowly that the Web surfer switches off before the ad comes up, says comScore.

And then there is fraud. A significant number of display-ad "impressions" often paid for by marketers are based on fake traffic. Malicious software makes a website think a person is actually on a page and ads are served up to that fake visitor. In other scams, ads show up on several Web pages but they are hidden behind a window on a website that is the size of a pencil point, according to comScore.

For the full article, please visit the WallStreet Journal via this link

The Dark Art of #HedgeFund Marketing: Shine Light on What You Do..Duh!

Courtesy of Bruce Frumerman



Editor Note: Marketing and Communication techniques for hedge funds are often no different than the techniques other service-centric businesses need to focus on. Its all about differentiating yourself from competitors and developing messages that distinguish yourself and ones that are clear, crisp and easy-to-grasp. We don't often profile 'competitors' in our posts, but we're happy to make an exception in the case of this simple, but important tutorial for masters of the universe who often believe what they are saying makes sense...even if their audience remains confused.

Have you taken notice of what SEI reports in 6 Ways Hedge Funds Need To Adapt Now, which addresses what it takes to succeed in the hedge fund business today? This sixth annual global survey of institutional hedge fund investors, with insights from roundtables with industry experts, reports that the key challenges hedge fund firm owners face today include the need to be able to demonstrate a sustainable edge and a clear value added, and to have business and marketing acumen.

SEI notes that seven out of ten institutional investors responding to its survey complained that “there are too many look-alike strategies in the hedge fund industry today.” Investors are not just looking for absolute returns, but for “differentiated alpha sources” that can produce non-correlated returns.
But, it is not enough for hedge funds to distinguish themselves in terms of their pedigree, talent, strategies, and performance, SEI observes. They need to “clearly articulate their investment process, and explain what makes their results repeatable (not to mention worth the fees they are asking).”

At too many hedge fund firms the owners never put the full detail of their hedge funds’ investment process stories in print. Verbal elaboration at an initial sales meeting to explain what your flip chart bullet points were meant to convey is not going to be remembered four or fourteen months down the road when a family office, institutional investor or wealth management firm may be getting around to discussing your fund and a few others with similar performance and risk characteristics. This often results in coming across as a commodity-like investment choice rather than a differentiated hedge fund with a value-added portfolio management approach.

Hedge fund marketing materials should make it easy for investors to conduct their due diligence. Too often they do not. While the pitchbook is the right tool for communicating data-based information (charts, graphs and numbers) it is the wrong leave-behind marketing tool for delivering a compelling and detailed explanation of investment process, which is text based content. An additional marketing collateral sales tool is required

For the entire article (which links to Frumerman's firm), please click here to FinAlternatives

Corporate Comics Update: Honest-Tea, It Works!

Using comic-book style elements within corporate collateral is a branding approach that we've profiled more than once..Lo and behold, Honest Tea's co-founder Seth Goldman, a Yale graduate, is applying his smarts to a proven method by telling his corporate story with pictures..

Here's the excerpt from today's NY Times snapshot courtesy of Elizabeth Olson:

WHEN it was building its brand, the beverage maker Honest Tea stayed off the conventional marketing grid, opting for samplings, recycling events and word of mouth to reach its audience. Now the company’s founders are taking an alternate route to telling a button-down corporate history and are instead laying out their story, warts and all, in the pictorial form of a comic book.

“People ask me if it’s a graphic novel, and I say that it’s graphic, but not a novel,” said the Honest Tea co-founder Seth Goldman. Together with Barry Nalebuff, who was his professor while at the Yale School of Management, the two are sharing their company-building lessons in illustrated panels that track the brand’s start in 1998 — and its many missteps and near disasters — through to the flourishing company that was bought in 2011 by Coca-Cola. 

To lay out the dozen years of Honest Tea’s ups and downs before that point, Mr. Goldman borrowed an idea from something he loved doing with his three sons — reading comic books. He wanted to illustrate the company’s story, and persuaded Mr. Nalebuff, who has written five other books, to come aboard. 

A Revolutionary Marketing Strategy: Answer Customers’ Questions..Duh!

Excerpt from NYT Feb 27 column profiling small business entrepreneur's winning approach to winning customers. Compelling for anyone that claims to have the holy grail directional GPS..
Hats off to reporter Mark Cohen!

Q. Take us back. How did you save your company?

A. I just started thinking more about the way I use the Internet. Most of the time when I type in a search, I’m looking for an answer to a specific question. The problem in my industry, and a lot of industries, is you don’t get a lot of great search results because most businesses don’t want to give answers; they want to talk about their company. So I realized that if I was willing to answer all these questions that people have about fiberglass pools, we might have a chance to pull this out.

Q. What was the first question you answered?

A. The question I was always asked within the first two minutes of talking to customers was, How much does a fiberglass pool cost? Pool installers are like mattress or car dealers — we hate talking about how much a pool costs until we have you in person because there are so many options and accessories we want to sell you. As a result, pool companies never mention price on their Web sites. But I said, I don’t care what the question is, we’re going to answer it.

Q. Did you actually tell people the price of a pool?

A. No — because I couldn’t. But see, that’s the magic behind this. Google’s search engine doesn’t really care if we answer the question. It’s just looking for companies that are willing to address the question. So I said in that article, there are a ton of options, so it depends, the price can range anywhere from $20,000 to $200,000 and a lot of our customers end up between $40,000 and $80,000. And that was enough. Within about 24 hours of writing that article, it was No. 1 for every fiberglass-pool, cost-related phrase you could possibly type in. And because I have analytics, so far to this day, I’ve been able to track a minimum of $1.7 million in sales to that one article.

Q. What was the next question?

A. People used to ask me all the time, “Marcus, I’ve been hearing that fiberglass pools have all sorts of problems and issues. So what are the problems and issues?” Of course, they’d been talking to a concrete pool guy, but it doesn’t matter where they got it, now they have the question. So we wrote an article about the problems with fiberglass pools and specifically came right out and said: Here are the issues. Here are the benefits. You decide. Now, when you go in and type anything about fiberglass issues and problems, you’re going to see the River Pools Web site and you’re going to think, “Oh my gosh, these guys are so honest.”

Q. Anything else?

A. In most industries, there comes a time in the sale process where the customer turns to you and says, “O.K., I like you, but who are some of the other good companies that do this?” Half the time it’s a test, because people know who our competitors are because they can find them in .5 seconds online. Most contractors avoid the question. They say, “Oh, we don’t really have competition.” But because I was asked that question so often, I decided to answer it. I wrote a blog post about the best swimming pool builders in Richmond, Va., one of our main service areas.

Q. Where were you on the list?

A. I wasn’t on it.

Q. You weren’t?

A. No, because the moment I put my name up there I would lose all my credibility. But here’s the thing. Take the first company on the list, Pla-Mor Pools, a top competitor of ours. If you type in, “Pla-Mor Pools reviews Richmond, Va.,” which of course people do all the time when they’re vetting a company, what comes up? Me! You vet all my competitors, now I’m showing up for all their key words. If you really want to understand the power of inbound marketing, it comes down to this idea: I want to have the conversation at my house.

Q. Once you wrote a blog post, how much time did you spend promoting it on Twitter and Facebook?

A. I didn’t. Dude, that one article on price has never been tweeted. It’s never been Facebooked. I’m not saying social media doesn’t help, but it’s nowhere near what people think. The only metric that really matters is total pages viewed. Here’s a statistic for you: If somebody reads 30 pages of my River Pools Web site, and we go on a sales appointment, they buy 80 percent of the time. The industry average for sales appointments is 10 percent. So, our whole marketing campaign revolves around getting people to stick around and read our stuff, because the longer they stay on our site, the greater the chance they’re going to fall in love with our company.

Q. What do you say to business owners who say they don’t know what to blog about?

A. That’s the dumbest thing I ever heard, and I hear it a lot. What they should be doing is just listening to every single question they get and answering it. In my consulting business the first thing we do is brainstorm what questions the company gets on a regular basis. I’ve never had a company come up with less than 100 questions in 30 minutes.

Q. How do you suggest companies find time to do all of this blogging?

A. Most of the time, they can take the employees they already have talking to customers and turn them into content producers. If you have 25 salespeople, and each one of them writes one post a month, your search is going to be through the roof because that’s a new piece of content every day.

Q. How have your competitors responded to all of this?

A. They still don’t really get it. They’re nice about it. I’ll have one of my best-pool-builder lists come out, and I’ll run into them. And they’ll say, “Hey, man, thanks for including me in that list. I’m not sure why you did it, but thanks.”