What we can learn from the agming industry?

Yet another interesting article on Ad Age.
Not for the reason that a video game now hit all the entertainment industry box office records. We knew they could do that; we know wince a long time that the gaming industry is big, big business, bigger actually than the movie industry.
Not for the reason that the video game is moving closer to the movie industry in terms of look and feel of the graphics.
No, it's interesting because it proves that mass marketing works.
Here you have a bunch of gaming guys that go like, hey, we have a property that has the potential to appeal to a broader audience, let's mass market it, whilst not forgetting about our core target groups. So they do, some game footage serves as a TVC (cheap to produce too) and before they know, the game is the biggest hit ever.
In the meantime proving that TV still is a very effective medium, even against (non hard core) gamers. And cleverly adapting their plan to reach hard core gamers too, proving that social media have a role too, as long as it is not bolted on, but used for a reason.
No rocket science, all common sense. Well done chaps!
As usualy, clicking on the title will give you more detail.

Where to spend your money?

Half of our advertising money is wasted, yet we don't know which half it is...
Whilst this adagium might have been acceptable in the sixties or seventies, I find it totally unacceptable today. Budgets are too high and times are too insecure to continue wasting money.

So I was happy to come across and article in WARC by Frank Harrison, who is Strategic Resources Director Worldwide, ZenithOptimedia, with as title 'Unravelling the Gordian know of brand contact'
In this article he explains how Zenith Optimedia have been using MCA to help marketers maximise the effectiveness of their marketing mix.
I skip the details, which was published in the Quarter 4 2009 issue of Market Leader and jump immediately to the last paragraph which talks about 'Universal Brand Contact Insights'.

Gut feel and facts tell me that there is much truth in what Frank is saying:

• don't underestimate the power of WOM
• don't underestimate the power of sampling
• TV is very effective, but beware, don't over spend in TV
• Radio and newspaper, and I add outdoor to that, are great tactical media but you quickly reach diminishing returns

At the same time, also according to Frank, what is true for one target group or product category, might not be for another. Question therefore is: How are you making sure you are not wasting 50% of your company's budget?

new agency compensation models, procurement,...

Interesting interview in Ad Age with Tara Comonte, IPG Media Brand's CFO and COO.

She has a very clear and sound perspective of where the added value of procurement lies.

I believe her comments about compensation models are spot on. It's time to move to different models. Remunerating agencies for time spent on a job does not seem right these days. Good also to hear that agency leaders are accepting accountability for their customer's business results through the compensation model.

Enjoy the reading by clicking on the title

social media an advertising tool?

One of the biggest problems we marketers have is that we love to hear ourselves talk.
We just like to see our products in the showrooms or the shelves. We love to see our ads on TV. We like to see our banner ads and web sites. That makes us feel proud. It's something we can show our family and friends and neighbours.

This propensity to talk drives our behaviour in social media. Hey, is this not a great tool to talk to our consumers, and the great thing is, they respond by saying how fantastic and great our brand is.
In order to do so, we set up fan pages, or at least facilitate them, so that we can count our friends, which is giving us something new to brag about.

This is completely missing the point. First, we should stop calling social media 'media'. They are not media in the traditional sense of the word: vehicles that we can use to talk to our consumers. They are rather listening devices. To listen to what the consumers are saying about our brands. Whether they like it or not. What they like about it or like less. What they'd like to see changed.

It's one big open research platform that we should not spoil by sending interfering messages.

So for the first time, ssssht, let's be quiet and listen

regulators and social media

One of social media's major benefits, when used as an advertising medium, might well turn against it and this is why.

Social media strength are the fact that they're social. If someone recommends you a product or a service, it's not advertising, it's WOM and we all know the power of WOM. It's just so much trustworthy. It's your pall recommending you to buy a certain product and that is so much different from all the exaggerations in advertising.

This obviously has not gone unnoticed to advertisers and we all started using social media as a way to advertise our brands.

So far regulators have not stepped in heavily. It is fair to say that with so many new platforms emerging and evolving constantly it is probably difficult to follow up on this as a legislator, who have to go through long and time consuming processes to create new laws.

I believe it is beneficial that clarity is created and guidelines are provided to advertisers. Preferably through self regulations, if needed by law. On basis of that advertisers know what rules to observe and can decide whether and how to use social media. Today, it is too much of a Wild West and honestly, that is beneficial to nobody.