We all know that advertisers will do just about anything to stick their ad in your face. Tracking consumers on the Web has been an effective medium that allows advertisers to target ads based on collected information. However, if you think the pop up ads on your computer screen are annoying, brace yourself for what is coming down the pike. Cellphones are going to be the device that gives advertisers your interests, habits and location. Since cellphones are used for a variety of activities such as playing games, downloading applications, sending instant messages, browsing the Web and emailing, it has become the latest and potentially extensive way for advertisers to aim ads at consumers.
According to The New York Times, there was a story about the power advertisers are finding in using GPS as well as other details about user profiles, pulled from “smartphones” like the iPhone and Blackberry, to send highly targeted messages to customers— as granular as sending a coupon for an NYC restaurant when the phone sends up a GPS signal about a user’s location on Broadway and 42nd. The story notes that advertisers are willing to pay a steep price when they know they’re hitting just the right consumers.
The capability for collecting information has alarmed privacy advocates. “It’s potentially a portable, personal spy,” said Jeff Chester, the executive director of the Center for Digital Democracy, who will appear before Federal Trade Commission staff members this month to brief them on privacy and mobile marketing. He is particularly concerned about data breaches, advertisers’ access to sensitive health or financial information, and a lack of transparency about how advertisers are collecting data. “Users are going to be inclined to say, sure, what’s harmful about a click, not realizing that they’ve consented to give up their information.”
While a mobile device holds a great potential for advertising, I have to admit that this is taking it a little too far. The thought of advertisers knowing every move that I make and then reaching me on my mobile phone is extremely intrusive and unnecessary. I truly hope that consumers fight back on this one. Since it’s common today for consumers to cause a ruckus when they are not satisfied, I can only hope that the troops rally on this one. However, this seems like wishful thinking on my part.
It has become the norm today for people of all ages to participate in social networking. I’ve become accustomed to reading status updates on Facebook and each time I wonder why certain people feel the need to tell everyone that they are tired, hungry, thirsty or ready to party. As a member of Facebook, I can honestly say that I’ve only added one status update and that was to tell my family and friends that I had the best weekend ever—I got engaged to my boyfriend of five years. I thought that special moment deserved a mention. It was the one stop shop for everyone to find out, including my coworkers.
Posting friendly messages to these social networks is harmless and sometimes comical. But what happens when someone posts status updates to Facebook or “tweets” about client meetings and goals? Heather Rast, an avid member of the social networking space describes her real-life story of how social media involvement affected her corporate career. As a follower of Joe Pulizzi’s blog Junta42Match, I came across his interview with her and was shocked. Since social networking is a hot topic these days, I felt this interview was worth blogging about and passing along to friends. Additionally, I learned a few things and have made a mental note for any future use of social networks. You might want to do the same.
According to the interview, Heather explains that the company she was working for didn’t have a social media policy. She says,”Because of my level of responsibility, I thought it within my purview to choose methods for generating interest among outside parties about what my team did, and what we had to offer. I used Twitter to share ideas like ‘Just had a great client meeting. I think they’re understanding what a SEM campaign can do for their short-term search goals.” However she also stated that she never mentioned a client by name and never detailed any client project.
Apparently, people at the company didn’t agree with her approach and decided to selectively cull certain Tweets and Facebook status updates and presented them to executive management. They claimed that she was sharing confidential client information and using poor judgment.
While Heather is no longer with the company that questioned her social networking activities, she is proud to say it was worth the fight and she would do it all over again. She now works for a company that has full disclosure of her blogging and Twittering and they support her writing and sharing with others openly.
At the end of the interview Heather give some lessons that will stay with her forever:
Heather’s Lessons Learned:
“Be very intentional about what I write anywhere. Have awareness about if the first and the fourth (example) sentences were stripped away, could my idea be misinterpreted, or used against me?”
“Have a healthy respect for dissenters. Threatened people will resort to surprising behaviors. Take actions to preempt their plans by being as transparent as possible.”
“You are replaceable, and your achievements are only as noteworthy as your weaknesses are few. Bad things can happen to good people.”
“Isolate what is really important to your career/professional happiness. Then make sure you’re working at a place that truly allows you do those things. Life’s too short to just work somewhere; find that career that offers fulfillment.”
Check out Joe’s blog for the full detailed interview.
Many companies do have workers that participate in the social networking space for the good of the company, but the important point is that they’ve also made an effort to have guidelines in place. IBM and Edelman are some of the companies that have such policies. People have to be aware of what their own company guidelines are and think twice before they publish information for the world to read in the social networking space.
Despite the fact that many consumers are holding off on purchasing houses and cars, companies are finding ways to communicate with consumers and ultimately building trust. Michael Fischer, VP Marketing for Coldwell Banker Real Estate is one executive that sees an opportunity in these challenging times. His philosophy on marketing troubled products and services: “build trust.” No one wants to trust their hard-earned dollars to someone or a brand they have questions about," says Mr. Fischer.
Recently, Fischer was interviewed by Advertising Age and explained that he is enthusiastic about the opportunity to reach out to the “dreamers” and boost web efforts. Fischer referred to the fact that Coldwell Bank is celebrating its 103-year-old legacy, and he has touted this information in its marketing efforts. When he was asked if real estate is just an impossible sell right now, he optimistically explained that there are tens of millions of people who are in the “dreaming” process and that they’re online looking at listings. So what is the important piece to the puzzle to get consumers to make a purchase? According to Fischer, consumers are looking for brands they can trust when there is a downturn in the economy. Since he thinks trust is important to consumers, he has made an effort to tell the firm’s story and boast the heritage of Coldwell in his communications strategy. Colbert Coldwell and Benjamin Banker, the founders of Coldwell Banker, play an important role in their marketing efforts. The interesting aspect of their marketing plan is that they have created Facebook and Twitter sites for their founders.
Even though the marketing budget at Coldwell Banker is tight, Fischer said spending is shifting from TV to online and alternative media. Last year 30% of the budget was dedicated to online, while the 2009 allocation is 40%. It seems rather contemporary for a 103-year-old firm to be on Facebook and Twitter. But the reality is that Fischer and his teams have done their homework. In other words, they’ve conducted market research and know where their audience is. Furthermore, since their audience is online they’ve discovered that digital platforms are the best way to start or continue the dialog. Fischer knows that purchasing a home is an important milestone and people need a little hand-holding to get to the finish line. Additionally, he knows that his prospective customers love the empowerment of the Internet and that when it comes down to making a purchase they need to engage with a real-estate professional. Ultimately, Facebook and Twitter not only presents an opportunity to have a conversation with consumers, but it also gives them a great opportunity to talk to more than 100,000 global agents that represent Coldwell Banker.
In the midst of a recession, people might not be purchasing, but they are online and thinking about moving forward into more prosperous times. If companies know where their audience is and how they feel towards a category, they can use this knowledge to their advantage and make a connection. Having conversations with consumers can present an opportunity to start a relationship and ultimately build trust, which according to one CEO is essential.
Advertising critics are everywhere. So when you come across a funny interpretation of how the advertising world works, it’s only the right thing to pass it on to other colleagues and friends. With the help of social networks like Facebook and Twitter, it’s easy to post such videos and share with friends. Although I still get emails from friends that like to share information, social networking sites are certainly the way to go.
Joe Pulizzi, a Facebook friend and colleague posted a video of George Carlin in action. He gives a clear warning that if you are easily offended then it might be a good idea not to proceed. However, the late and grate George Carlin is a memorable character, and to hear his take on the purpose of advertising was quite entertaining and definitely worth passing it along.
Check out the video for an entertaining depiction of advertising by the George Carlin from "You Are All Diseased" (1999):
It’s obvious that when consumers are not spending, and companies are laying people off and cutting budgets in half, many industries suffer. Often times advertising gets hits the hardest as Management feels that it is one area that can be scaled back. Executives who succumb to that temptation, however, put the long-term future of their companies at risk, according to Wharton faculty and advertising experts. "The first reaction is to cut, cut, cut, and advertising is one of the first things to go," says Wharton marketing Professor Peter Fader, adding that as companies slash advertising in a downturn, they leave empty space in consumers' minds for aggressive marketers to make strong inroads. Today's economy "provides an unusual opportunity to differentiate yourself and stand out from the crowd," says Fader, "but it takes a lot of courage and convincing to get senior management on board with that."
These difficult times represent an opportunity for companies to use integrated campaigns that mesh traditional outlets with digital media. Just because consumers might not be spending as much now that does not mean that they are looking to dwell in the recession. Eileen Campbell, chief executive of the Millward Brown Group advertising firm in New York City, says "If you can put a positive spin on how you can genuinely help without invoking doom and gloom, I think that's going to be more compelling." Ultimately, companies, marketers and consumers are in this dismal phase together and it’s going to take everyone to put one foot in front of the other to slowly get out of it.
Growing up in the suburbs during the winter months, it was a weekly routine to stop at Blockbuster to pick up a few flicks for the weekend. Family and friends would hang out in the den and relax with a newly released movie on a Friday night. Things have certainty changed. Now it’s obsolete to think about getting off your couch and driving or even walking to a Blockbuster. As we all know, new services and technology such as Netflix, DVR and You Tube are the popular outlets for watching videos. As a result, Blockbuster is in trouble and reportedly mulling a Chapter 11 bankruptcy protection filing. Needless to say, the Blockbuster that I went to growing up is closed for business and my Blockbuster membership card, which was once a must-have item in my wallet, has disappeared to a drawer somewhere in my apartment.
The excitement of going to Blockbuster to get a new release will continue to be a memory for me. But the truth is, why would anyone go to the store when they could order it from their home or watch it on their computer? This makes me wonder what rock Blockbuster decision makers were living under. For years, customers have been migrating to video downloads and mailed rentals and Blockbuster was no where in the conversation. Since I have not rented videos from Blockbuster in years and never visited their website, I decided do some investigating. Apparently, the company did spend heavily and pile up debt to build an online DVD rental service to compete with Netflix Inc. I didn’t even know the chain had a section to download movies on its website or allow people to get movies delivered to their home. Obviously, none of their attempts worked and they’ve lost me as a customer. Perhaps the chain was late to the game or forgot to inform its customers all together about these new additions.
As Vicky Else, President of The Market Artist mentioned in a previous interview on my blog, research is essential. Tracking consumers and understanding their needs is important in order to move forward and stay relevant. While research can be expensive, there are online research techniques that are useful and cost effective. Ultimately, research leads to insights, which can help a company alter their strategy or remain focused. So where did Blockbuster go wrong? Did they think that people adored their chain so much that they would forgo the idea of sitting in their own living room and pressing a few buttons to get the new release? As the world's largest video rental chain, it did have the ability to keep its’ customers loyal. However, this is a perfect example that illustrates how not keeping up with the trends, listening to your consumers and communicating with them, your competition could knock you off your feet. Although these thoughts are only based on my speculation and past relationship with the chain, it seems pretty accurate to say that Blockbuster missed the boat. I have jumped on the Netflix boat and have never turned back to checkout Blockbuster.
While times are tough, consumers are not making as many purchases and are concerned about how they spend every dollar. In these tough times, it’s interesting to see how consumers feel about their favorite brands and what comes to play when they actually make a purchase. Is price the major factor? Are they loyal to the brand and purchase its’ products despite the dismal economy? Do they pay attention to advertising? And if they do pay attention to advertising, do they like it when CEOs participate?
Over the years, there have been countless companies that have used CEOs in their advertising campaign. CEOs such as, Charles Schwab, Dave Thomas of Wendy’s, Frank Perdue of Perdue Farms, Dan Hesse of Sprint and Warren Buffet of Geico have either appeared on television or in print campaigns. While prominent and confident CEOs have taken the spotlight in recent years, an Adweekarticle has raised the red flag that companies should rethink this strategy.
“These CEOs have chosen an interesting time to be in the spotlight. With the news filled with images of overpaid executives flying corporate jets to Washington, D.C., as they plead for government assistance to keep their companies afloat, no CEO at a major corporation-even those not related to the banking or car industries-can count on any goodwill coming his or her way,” said Eleftheria Parpis, the writer of the article. Additionally the article refers to a recent Opinion Dynamics poll from Fox News. The poll found that 73% of respondents felt corporate CEOs were not honest or ethical.
Despite the poll and the state of the economy, several companies are still using high-level executives in their advertising campaigns. As I was reading this article, I found myself wavering back and forth as to whether I thought it was a good idea to have CEOs front and center. As a worker bee in the corporate world, I admire high level executives and firmly believe their statements and opinions when it comes to the company’s mission and dealing with the ever-changing world around us. On the other hand, I can understand how so many consumers are weary of CEOs based on the recent events pertaining to the financial world. The CEO is the ultimate decision-maker and is supposed to have a tight grip on all aspects of the business. This type of thinking and assumption is why so many Americans, including myself, are confused and frustrated as to how things got so bad.
Advertising and media agencies will continue to be creative when it comes to building campaigns for their clients. Although using CEOs might have been successful in the past, there is evidence that people are weary and suspicious of these high-level executives. One can only hope that the agency is well informed about the rumblings on the street and are aware of how the consumers feel about the company and industry as a whole. A true test would be asking consumers how they feel about certain companies and CEOs to gauge interest. Putting aside pictures in an ad campaign, I can promise you that if people saw certain CEOs of financial institutions out on the street they might not be too happy.
Not all CEOs have sneaky and selfish goals up their sleeves. Case in point, Dave Thomas built his multi-billion dollar fast-food restaurant chain from the ground up, earning him a reputation as one of the most successful and loved entrepreneurs in American history. He is also known for appearing in more than 800 commercial advertisements for the chain from 1989 to 2002–more than any other person in television history. Now something has got to be said for a CEO that has appeared that many times in commercials.
In memory of Dave Thomas, here is an oldie but goody:
Forget trekking to bars and participating in speed dating to find your true love. Online dating has become the new popular way to meet your soul mate. There are many websites that cater to people looking to get set up in the virtual world. These include Match.com, JDate.com and eHarmony.com. Just when you think you’ve mustered up enough courage to date in the online world, a new way to find a date has surfaced.
Welcome to Skout, the first-ever social dating application that allows people to use their mobile phone. People can flirt, chat and belong to a community of singles who want to chat online and then meet in the real world. The application allows you to tell potential love interests what you’re all about by posting mobile pictures or notes.
Recently, Skout proudly introduced Skout OUT which is real time online dating in bars and clubs across America. According to a press release on the website, Skout is "leveraging location-based services and 42" touch-screen plasma displays stationed in bars and clubs across the US. Single men and women looking for love need only let their fingers do the walking to flirt, send virtual gifts, or dedicate a passionate song to someone that inspires their senses. Skout OUT currently interacts with hundreds of thousands of Skout users using their iPhones, cell phones and laptops to find love on Skout's mobile dating service."
If you think buying someone a drink at a bar is enough to get a date, you might want to think again. Not only do you have to put your best face forward in the online world, you will need to be accessible with your phone. "Skout OUT solves the age-old problem of finding and approaching singles," said Skout's CEO and founder Christian Wiklund. "As an industry first, we are connecting the virtual online dating world with the real world. Skout OUT enables singles at clubs to 'see' not only available singles at their location, but also singles in other nearby venues as well as Skout mobile phone users. Skout OUT is an important new tool in our company's mission to make finding love easier."
Will people be willing to swipe their credit card or insert cash into the build-in payment system to purchase virtual gifts or music and send to prospects at the bar? Although the process seems convoluted, it’s feasible many bar-hoppers will participate—especially after they’ve had a few cocktails. Even though some people might not feel comfortable announcing their dating interests for everyone to see, it seems like the norm to try different avenues and routes to find true love. The old saying “Never frown; you never know when someone's falling in love with your smile” rings true in the digital world now too. So get your game face on!
While SKOUT presented at the DEMO 09 conference yesterday, TechCrunch had a preview of the program and posted this video clip:
