The TruEffect Blog

As the Internet tips.....

I've been reading this book that’s really captivated me. Bear with me if this is old news to you because it was published in 2000, but it's rocking my world today. The book is "The Tipping Point" by Malcolm Gladwell. The thing that's got me hooked is the idea that even the tiniest alteration in a product, idea, or just about anything, can spark cataclysmic changes. The word the author uses for this type of change is "epidemic." 

The example he talks about is old school Hush Puppies, a classic brand that was distressed in the early 90's. If you recall, they were pretty ugly.  Sales had flat lined, and they were only selling 30,000 pairs to mom and pop shops around the US. They were definitely on their way out. Then the strangest thing happened. A small group of young New Yorkers, some suggest only around 20, began to wear them around Manhattan. No one knows why. Maybe they wanted to be different, or they just wanted a comfy, cheap shoe. Within a year, Hush Puppies sold 430,000 pairs of shoes, was featured in many Manhattan boutiques, and even found their way onto the runway. By 1995 Hush Puppies was named the fashion accessory of the year.

So, what do mid 90's Hush Puppies have to do with the current state of the internet advertising? It reminds us that small, almost invisible changes can have incredible effects. Like re-focusing on the simple, Marketing 101 theme - playing the right message at the right time to the right person. I know, internet advertising companies have been talking about, and claiming to do this for over 10 years. Sure, many technological advances have moved us down that path, but the truth is, now we can actually do it.  Just recently, we've seen TruEffect's newest technology start epidemics for our clients. They're seeing things in the online campaigns that they never thought possible, and using that information to speak directly to their customers. Maybe internet advertising just reached a tipping point. 

– Brian Murphy

So, social media's not media after all? This explains a lot.

This week, Ted McConnell, general manager-interactive marketing and innovation at Procter & Gamble, didn't pull any punches when speaking bluntly about social media. "I think when we call it 'consumer-generated media,' we're being predatory," he said. "Who said this is media? Media is something you can buy and sell. Media contains inventory. Media contains blank spaces. Consumers weren't trying to generate media. They were trying to talk to somebody. So it just seems a bit arrogant. ... We hijack their own conversations, their own thoughts and feelings, and try to monetize it."

Maybe this answers the question of why social networking sites have yet to garner the success they seek in monetizing their sites? It's not really media? Who knew!?  McConnell also said that while he respects the targeting capabilities on Facebook, he doesn't feel comfortable with it. While many of us have thought it, blogged about it, or seen it be the topic of an occasional public outrage or two, we seldom hear marketing folks being so refreshingly blunt. 

So, what does make Media media, and what is acceptable content on which to create inventory? McConnell's criteria could also rule out user generated content on YouTube.  His premise would seem to dictate that when consumers are creating media they can't at the same time being consuming it.

And what consumer information is OK to target on? Are we OK with the behavioral targeting so many media networks use to infer data about us based upon our surfing habits? Perhaps the worst thing about that is its unavoidable inaccuracy.  At least it's not as intrusive as the newly engaged woman on Facebook receiving ads about how to not be a fat bride.  However, many companies, consultants, and technologies are betting the bank on the social media trend, not to mention the $1.4 billion sunk in ad dollars this year. What do you think? Maybe the answer is 42.

– Layne Salter

Don't let the Grinch steal the Holiday season!

Sure, we've been hearing nothing but financial doom and gloom, with many predicting the worst year ever for holiday shopping. But a bad economy is no time for online marketers to roll over and play dead. If anything, it's possible that online shopping could pull a last minute win, save the Season, and ward off the Grinch. But how?

1. All is not lost. Despite the economic downturn, online shopping is expected to increase 10% over last year, with $32 Billion spent online. Jeffrey Grau, senior analyst at eMarketer said, "More than ever, in order to save money on holiday gifts, consumers will turn to the Internet to get gift ideas, find bargains and locate retailers that stock desired products."

And what about those Gen X-ers? Recent studies show that they not only outnumber Baby Boomers now, but exceed them in annual income as well. Not to mention that a whopping 90% of them are online. And due to their unique mixture of education/intelligence and high debt (an oxymoron, I know) they are predicted to be leading the online bargain hunting pack, no doubt buying up all the Wii's for themselves and their kids.

2. Know your audience. Stay as close to core customers as you can. Chad Little from Fetchback says, "Rather than simply focusing on getting another new customer to come to your website, you should work to get the customers who have already visited your site to come back." Here at TruEffect, we are closing the gap between web analytics and targeted marketing, by helping advertisers utilize what they already know about their existing customer segments, and apply it everywhere they buy media online – enabling them to find and communicate directly with them.

3. Use advertising that works
Performance. Accountability. Relevance. These are the watch words of this economic slump. There's no doubt that advertising budgets will suffer, so marketers will want to make the most of what they've got. Ramping up the right online efforts can save money over other channels, as well as provide greater measurability.

4. A picture's worth 1,000 text links?
Recent studies reinforce the importance that online shopping has on offline purchases, particularly when a mixture of Search and Display are used. And yet, McKinsey in its June 2008 Digital Advertising Survey, found that only 30% of marketers even considered the offline impact of online marketing.
Consumers don't shop in a vacuum, but rather ingest visual ads, search online, comparison shop, ask friends, and read blogs. An effective marketing mix shouldn't overlook the basic tenet of advertising - eliciting emotion. What better than the graphical magic of display and rich media?

With the proper mix of advertisers, online shoppers, and online marketing personnel who know their stuff, who knows? Maybe it could be a green (as in moola, not carbon credits) holiday season after all.

– Layne Salter

Social Media - the eyeballs have it

Marketers still struggle with wrapping their heads around the value of social media, and how to best connect their brands with communities. Because the online world moves at near light speed, our tendency is to jump in, or endlessly noodle over, the latest media trends and technology. The thing is – it takes time for these hatchlings to mature. But according to Forrester, 75% of Internet users now participate in social networking at some level, so if you were waiting to see if it's a flash in the pan, I think it's safe to say social media isn't going anywhere.

Social media ad dollars are also on the rise, with just over $1.4 billion estimated this year. While this is just a small fraction of the $24.9 billion online spend, it’s up 55% from last year. MySpace and Facebook snagged the largest portions of the advertising pie, but Twitter, Tagged, and Ning lead the race in audience growth (Nielsen Online). And it’s not just the youngsters anymore – Forrester found that 35 – 44 year olds are now jumping on the social bandwagon as well.

Despite Facebook’s “Beacon” faux pa earlier this year, a recent Forrester report shows 29% of users prefer targeted ads, while only 13% of users are worried about sites tracking their behavior. The trick is to not cross the “creepiness” line, which Facebook did by broadcasting shopping behavior without permission.

The thing is, consumers might be OK with trading their information for relevant ads, but perhaps advertisers and media providers are still missing the definition of “relevance.” While it's remotely relevant that I surfed game design schools, it’s not something I care about. By contrast, social networking sites have access to a bottomless well of demographic and psychographic information, some “declared," other "inferred." But lack of sophisticated targeting algorithms, or perhaps lack of a quantity of quality advertisers, still results in members getting ads that have nothing to do with their interests.

Who has the targeting information that could actually provide a relevant advertising experience users want? My money goes to the “known and trusted merchant.” Amazon knows everything I want – it’s in my wish list. IMDB and Netflix know my movie interests. Expedia knows where I like to go, and L.L.Bean knows I only shop with them at Christmas. If technology could provide a solution to integrate the advertiser data into the targeting equation, consumers might begin to actually feel "engaged." TruEffect continues to develop solutions to create the most optimum engagement between advertiser and consumer, anywhere they meet on the web.

So, what of the wonderful opportunity to intimately engage with your customers on social media? It still has a way to go, but in light years……. It might not be such a long wait.

– Layne Salter