New Media Trends for 2009

Many forms of online marketing can be more cost effective than marketing with traditional media.  As such, the use of new media is bound to explode in the coming year because of the down economy.   Strange Corp. has come up with a comprehensive list of predictions of online marketing trends for 2009.  Since many of them are related to the subjects we studied this semester I thought I would close my blog with a discussion of their predictions.

As more organizations use paid search the cost of keywords will continue to become more expensive.

Simply having a website was once enough.  Then one needed to get as much traffic as possible to that website.  Sure, sure.  Traffic is fine but not if they aren’t buying.   In 2009, conversion is where it’s at.  It will be especially important with people tightening their belts.

Good design and excellent creative digital marketing is going to more important than ever.  Engaging the customer and garnering attention will be essential.

Data security and privacy issues will always be an issue.  The story will continue in 2009 because no one is really doing anything to regulate data mining or encryption usage.  And any slip in this regard is going to cost the offending entity dearly.
 
My favorite on the list: “knowing what your website users did is nice, but knowing WHY they it did will become crucial. We predict that there will be huge growth in the use of qualitative data in analytics and decision making in 2009.”  Knowing the whos and whys go a long way in making business decisions.

RSS newsfeeds will go mainstream because it’s more reliable than email.  And, as a previous post examined, people are becoming more curious about the technology.

As another previous post on this blog pointed out, people trust the opinions of other people.  “A Universal McCann study in 2008 found that only 14% of users trust advertising, whereas 78% trust recommendations of other consumers. This highlights something many online marketers have known for a while: user generated content can be very beneficial.”

Social media opportunities will expand.  Who doesn’t have a blog these days?!  According to research by Universal McCann, 73% of users read blogs and 36% think more positively about brands that have them.   That means if you are a marketer for a company without a blog, get one now.

Hello, Sponsored Links!

Paid search is an online marketing method that can realize a great ROI.  After this week of researching and reading about this subject, I am humbled to say that I think my opinion has been changed on this subject.  I used to hold the belief that paid search was, in some way that I couldn’t exactly define, cheating.  A good online marketer, I reasoned, knows how to use metatags and natural SEO to their advantage and if they don’t, they simply fail.  Yes, I know that’s harsh but so is business sometimes.  And then I read an article on mediapost.com about Smith Micro’s success with search.  Their campaign was successful in a 70% increase in sales for three quarters kind of way.  When I starting reading the article I was convinced that I was simply affirming my suspicions of internet trickery.  But something really stood out that made me begin to think I was being a little too judgmental:

“Getting those results was not easy. Digital River has supported Smith Micro’s paid campaign for four years, but it wasn’t until search, analytics and Web technologies matured in the last year that Smith Micro began to see significant return on investments.“

Yep, that’s right.  It took paid search four years of maturity to realize ROI and the see such increases.  And Smith Micro was pretty demanding of their SEO team, Digital River:
“Smith Micro challenged the Eden Prairie, Minn. agency to increase conversions and associated revenues from paid search, optimize keyword use to increase return on investments, connect Mac users directly to Mac-specific product pages, provide global paid search optimization to European markets, help achieve the goal to increase annual revenue by 20%, and support multiple upcoming new product introductions.”
That’s a big list that goes beyond a simple pay-per-click ad on Google. The strategy required a great deal of knowledge of natural SEO beyond and in addition to paid search to achieve these goals.  And so I’m humbled because I now realize that paid search has its place in a campaign as a whole.

This brings me to another article I read on mediabuyerplanner.com about small business owners and their feeling on paid search.  Though they invest heavily in building an online presence, 59% of small businesses with websites don’t currently use paid search marketing and 90% never even attempted it, according to Microsoft Advertising.  86% of small-business owners feel as though they could be missing opportunities to grow their business and 75% think potential customers are likely to be using search to find their offerings.  The most significant statistic is that 73% of small business owners say they are intimidated by search marketing.  Some concerns:

• 89% feared keywords might become too expensive.
• 81% percent question whether paid search marketing is the best use of their marketing budgets.
• 25% of respondents believe paid search marketing is too complex.
• 21% percent think it would be too time-consuming.
• 35% feel they need an agency to help set up a search marketing campaign.

All of these are counter to what marketing professionals know about paid search.  And of the small-business owners that utilize paid search, 72% reporting an increase in sales inquiries and 68% saying they consider their paid search marketing efforts successful.  Perhaps, like much of what we’ve studied this semester, all that is needed is some comprehensive simplistic education for small business owners so they have the confidence they need to embrace technology that can help them be more successful.

So…What Is A Website, Anyway?

One of the most basic elements of a campaign that is incorporating new media is a website.  When I worked for a national hosting company we would always tell our clients that having a presence on the web was essential in the market today.  I really do believe that.  But I have been witness to some truly badly designed websites that make me believe that if one is not going to take the time to design a good website then they shouldn’t design one at all.  According to everybodygoto.com there are some simple elements of a good web design in the era of Web 2.0:

1. Adherence to design standards.
2. Consideration of cross browser compatibility.
3. Visibly provides all the information that your visitor needs to know as soon as they visit your website.
4. The Web Accessibility Initiative is laid out to make the web an equally accessible place for people that may be challenged in various respects.
5. Simply designed for ease of use and maximum search engine spidering.
6. Provides intuitive user interfaces to engage users.

Now for those of us who aren’t web designers here is some advice from another web designer who is focused on taking those commonalities and creating “pages that are distinctive, natural, brand-appropriate, subtly memorable, and quietly but unmistakably engaging” .  Jeffrey Zeldman from A List Apart examines some things a website is not:

“Web design is not book design, it is not poster design, it is not illustration, and the highest achievements of those disciplines are not what web design aims for. Although websites can be delivery systems for games and videos, and although those delivery systems can be lovely to look at, such sites are exemplars of game design and video storytelling, not of web design.”

Zeldman is able to succinctly define web design as:

“ the creation of digital environments that facilitate and encourage human activity; reflect or adapt to individual voices and content; and change gracefully over time while always retaining their identity.”

I couldn’t have said it better myself!  Websites are so important for a variety of reasons.  Websites provide information to customers.  It can contain simple items like hours of business for a brick and mortar store.  It can also contain major systems like a whole virtual store.  But a good website should always leave its visitor with a clear impression of the organization and the feeling it wants to convey to the public.  It should be like being there without having to be there. So a website needs not only to serve as utilitarian purpose but an emotional one as well.    This is essential for branding and creating loyalty to that brand.

Holy Super Tracking, Batman!

In a recent article in The Wall Street Journal Stephanie Kang details a new technology that is able to track all forms of electronic media used by one consumer.  The implication of this on IMC practitioners is huge since it can measure the ROI of each aspect of a campaign and see the effect of one form of media on all others all at the same time.  There have always been ways to measure results:  Nielsen for TV+; Arbitron for radio; print media report circulation figures; and the Internet measures hits, page views, and other traffic data.  But being able to measure this all at once was all but impossible. 

Enter Integrated Media Measurement Inc. (IMMI), a small firm in California.  IMMI has created a new technology that uses a consumer’s cellphone to measures their exposure to the audio in ads on television, radio, computers, mobile phones, DVDs and even at movies, concerts and sporting events.  More significantly, IMMI can track television viewing outside the home and on-demand viewing, something no other company could claim up until this point.  And with less people participating in appointment viewing of TV, that is a significant accomplishment.  IMMI also points out that they are having success that other media usage collection methods don’t enjoy because the technology allows for unobtrusive and passive data collection that doesn’t force panel members to adjust their behavior.

IMMI’s technology can also boast real-time reports that deliver detailed demographics that go beyond group averages because it tracks the same person end to end through all media exposure.  This allows companies to have a more secure knowledge of things such as when and where to advertise, what programming causes consumers to change the channel or station, even verify if their promos ran at all.

I know what you’re thinking…”How does this all work?”According to IMMI’s website:

“IMMI’s passive digital monitoring requires no input from the panel member, broadcaster, or advertiser. To accomplish this, IMMI designed and patented a proprietary software platform that runs on open-architecture cell phones interfacing with a unique server system.  The IMMI phone randomly samples 10 seconds of room audio every 30 seconds. These samples are converted to digital signatures, which are uploaded continuously to the IMMI servers.

IMMI also tracks all local media outlets actively broadcasting in any given designated media area (DMA). To identify media, IMMI compares the uploaded audio signatures computed by the phones with audio signatures computed on the IMMI servers monitoring TV and radio broadcasts. IMMI also maintains client-provided content files, such as commercials, promos, movies, and songs.  By matching the signatures, IMMI couples media broadcasts with the individuals who are exposed to them. The process takes just a few seconds.   The cell phone also receives a signal from an IMMI Bluetooth beacon when the panel member is at home, so the servers can interpret media exposure as “in” or “out-of-home”.

In short, this is data mining with ADHD.  If we thought there were ethical issues with data mining, imagine the can of worms this technology could open.  The significant difference is the recruitment of consumers to use the technology.  IMMI insists that recruitment is done in a responsible manner.  An independent recruiting firm conducts short interviews to collect basic demographic data and viewing habits. Respondents who agreed to join the panel receive a follow-up call from an IMMI Research Panel Member Representative who reconfirms all basic information, reviews the IMMI privacy policy, and gives the panel member the opportunity to ask any questions they might have about the process.  So panel members are aware that they are being tracked.  That’s a big difference from slipping a cookie on someone’s hard drive and calling it a day.

Will RSS Finally Come Into It’s Own?

In October of 2004, SearchCRM contributor Barney Beal asked: “Are RSS feeds the next great marketing tool?” Marketing Charts reported last month that 70% of B2B technology marketers are not incorporating RSS into their company’s online marketing strategy.  It causes me to question if technology marketers aren’t using RSS technology why would non-technology companies feel comfortable doing so?

 

RSS is a fascinating technology.  It delivers information as it happens directly to the user who has opted in to receive it.  I dare say RSS could be better than email marketing.   There are definite benefits to using RSS instead of email:

 

Your communication is not lost in a sea of spam.

RSS are links to a website so there is no fear of downloading suspicious content.

Users determine if they want to subscribe to the feed or not.

 

But there are drawbacks as well:

 

RSS lacks the personalization of an e-mail newsletter.

It provides only a small amount of information.

RSS has no images or sound.

However, for the B2B segment, RSS feeds could be highly useful.  Important changes in pricing, inventory, and other time sensitive information can be communicated instantly.  Marcom Ink’s research included visits to 300 US B2B technology-company websites.   They found that seven out of 10 are not using RSS at all.  And the 30% of companies that do provide RSS, only 10% have multiple targeted feeds which means customers are given less choice and less personalization.

Marcom Ink also reports that only 16% of the general public use RSS feeds.  Perhaps there just aren’t enough relevant RSS feeds available for consumers.  Or maybe they simply don’t know where to find them or understand how RSS can be useful to them.    A search on rss-feeds-directory.com revealed pages of consumer-based feeds from blogs as well as retail sites.  There is good news, however.  According to a PressFeed PR release:

 

“Google’s Zeitgeist list for 2008 released this week shows that many Americans are now searching by asking a question –”Who is” … and “What is” … are the most common questions. At number five on the top ten list of “What is” questions is What is RSS?”

 

With more consumers aware of it and wanting to know more about RSS, perhaps we will see Beal’s prediction from 2004 finally come true in 2009.

Ethinic Minorities and New Media Usage

The changing landscape of the American population needs to be examined by marketers in order to be able to meet the needs of all segments including minorities.  Ethical and good marketing to minorities is much more difficult to achieve than it seems.  It’s not as easy as putting up a mirror site in another language.  It means really getting to know the group and their culture and responding in kind.  Dr. Felipe Korzenny of the Center for Hispanic Marketing Communication at Florida State University released his latest study of population groups and media usage in January 2008.  The study, called The Brave New World of An Emerging Diverse Online Majority, shows that US minorities are, more often than not, the leaders in new media usage.

 

The study compared adults 18+ broken down by race as follows: Non-Hispanic Whites, African-Americans, Asians, Hispanics that mainly speak English, and Hispanics that mainly speak Spanish.  In the area of ownership of technology Non-Hispanic Whites lagged behind as far as having a blog, a website, podcast, or a cell phone with either a camera or an MP3 player.  Surprisingly, more minorities even have technology like wireless internet access, MP3 players, and digital video cameras than Non-Hispanic Whites.

 

In terms of the types of media and the influence they have on the items they purchase, each group ranked the internet as first, followed by TV, magazines, radio, and newspapers. In fact, the only thing that has greater influence on what they purchase is word-of-mouth from family and friends.   And despite cultural differences, all the groups reported that they use the internet daily to firstly, conduct financial activities, secondly, research products and services, and thirdly, to actually shop for products.   As far as the attitudes of the various groups going online they all admire ads showing cultural diversity rather than ads in a different languages and they dislike seeing commercials for products such as Viagra.

 

More interestingly, many of these statistics are shown to be almost mirrored in the UK.  Research by Ofcom compared adults from the Indian, Pakistani, Black Caribbean and Black African communities in the UK.  The study showed that these minority groups are the forerunners of digital communications and account for high levels of mobile phone, internet and cable/satellite television usage.  According to Ofcom:

 

“…despite almost all adults from ethnic minority groups showing interest in internet functions, they are less confident about general use of the internet. For example, they are less likely to say they are confident finding information online (69 – 83 per cent compared to 91 per cent of the UK population as a whole) and creating content (59 – 62 per cent compared with 66 per cent of the UK population as a whole).  All four ethnic minority groups are also less likely than the UK population as a whole to shop or bank online (19-29 per cent compared to 41 per cent). Despite the lack of confidence in some areas, ethnic minority groups are more likely to have downloaded music, video clips and longer content such as films and television programmes than the UK population as a whole. For example, between 65 and 79 per cent of ethnic minority groups say that they use the internet to listen to or download music online compared to 57 per cent of the UK population. “

 

I can’t help but find it interesting that American minorities are more comfortable contributing content in the form of blogs and websites than their counterparts in the UK.  But both the UK and the US as a whole are concerned about offensive content regardless of ethnicity or race.  It makes me wonder how different we really are!

Advergaming…Is It A Good Thing?

There is a not so new marketing tool that has arrived full steam called “advergaming”.  Oh, yes, that’s right: online video games that highlight a product or brand.  I can assure you that this kind of advertising is typically not going after Gen X or the Boomers.  Advergaming is all about getting the attention and the brand loyalty of Gen Y.  And advergames exist for many different kinds of products from food and drinks to cars.  Doritos released “Doritos Dash of Destruction,” a game created from a submission to the 2007 Doritos “Unlock Xbox” challenge. Doritos asked fans to conceptualize a game idea that “brought to life the bold spirit of the Doritos brand”.  Apparently the bold spirit of Doritos inspires people to think of fire-breathing dinosaurs.  This was a great combination of advergaming and a promotion aimed at older Gen Ys.  But advergaming also targets younger children which creates an aura of controversy around the concept.

 

In a 2007 story by CBS News the complete nature of advergames is nailed down by Samantha Skey from Alloy Media, a company that specializes in marketing to young people: advertisers know that the children of today are the consumers of tomorrow.  And the kids of today are media savvy and constantly connected.  To stand out, advertisers have had to come up with unique ways to engage consumers.  The internet is a powerful tool in that engagement when it comes to adults so imagine what the possibilities are for children.  So what about ethics?  Good question.

 

I think that advergames are not overt sales pitches by any means.  But it does garner attention and it does plant suggestions in the minds of consumers.  I think that is why advergaming is absolutely subjective.  PBS Kids site offers quite a few games centered on PBS characters such as Curious George and Arthur.    Are these games trying to sell kids on watching PBS?  PBS is trusted by parents to be a source of wholesome entertainment for their family.   So, in this case, are these advergames good?  Alright, how about this situation: Nabiscoworld.com offers a number of games like Oreo Dunk N Slam and CornNuts Teed Off.  Considering the obesity issues in the US, are these games not good for children or anyone for that matter?

 

I think what really matters is what the game is trying to promote and the way it’s trying to promote it.  Golf CornNuts style seems like a contradiction in terms and a little offensive even.  Sure, the first thing I think of when out getting some exercise on the golf course is CornNuts!  Virtual Goose, however, is a matching game hosted by Arthur on PBS Kids.  It loudly proclaims “As Seen on TV!” but one could hardly accuse PBS of trying to promote something that may be harmful in the long run to our kids.  It’s one thing when a game depicts an offering in a manner that is consistent or, at least plausible, with reality.  It’s another story playing basketball with an Oreo cookie which seems so suggestive by placing an offering just for the sake of exposure. 

I’m Not a Warrior…But I Play One on the Internet.

Yes, yes, I know…it’s been way too long!  Considering how much I like writing these entries, the weeks get away from me too fast.  I’m like most people these days, I’m afraid.

 

Last week we were discussing short films being used for marketing.  A classmate posted about the Army National Guard and Three Doors Down performing a song called “Citizen Soldier”.  This reminded me of a similar video I saw a few weeks before in a movie theater in Northeast Pennsylvania during the previews that were shown before Oliver Stone’s “W”.  There was no ambiguity from me when I first saw it and there is none now: I think that the use of Dale Earnhardt, Jr. in this manner urging people to enlist in the National Guard is unethical marketing. 

 

Now, I feel the need to qualify a few things here.  Firstly, not only am I a rabid NASCAR fan but I am an uncompromising Dale Earnhardt, Jr. fan.  And I come from a family with a long history of those who have served in the military.  Right now I have one relative in Iraq, one who will be going there in early 2009, and one who was killed there four years ago.  I respect the military and feel that it is an important part of a well-functioning government.  I will gladly go on record that I oppose the current US occupation in Iraq but I am, by no means, a pacifist.  I certainly do wish we could all live in harmony, though.

 

Back to the matter at hand.  Just so you can see what I’m talking about the video can be seen here:

 

 

I take issue with this video on a few different levels.  I really don’t like the fact that Dale Earnhardt, Jr. has never served in the military and yet scenes of him driving his racecar is juxtaposed with scenes of National Guardsmen in combat in what looks like a Middle Eastern country.  One of my classmates stated that driving in a race is like doing battle.  I think that could be a fun analogy under some circumstances but in this case it is appalling.  When racing is being compared to a real war it is pretty offensive to me.  And certainly Earnhardt is risking his life in his profession much like a soldier is but he is risking his life for what is ultimately a game.  He is also compensated handsomely to do so.  His total NASCAR career earnings before 2008 was $42.9 million.  That does not include what he is compensated for merchandise and his various business dealings.  I think we can all agree that he earns more than a US soldier.  And I know we can agree that US soldiers are risking their lives for more than a game.

 

What is more upsetting about this campaign is that US military enrollments have been consistently down ever since we invaded Iraq.  To me this was a response from the American people to the government that their decision to invade Iraq was a bad one.  Stories of people enlisting after September 11^th were everywhere.  And this was happening despite the certainty that a newly enlisted person would more than likely see combat in Afghanistan.  Now it as if the government is using Saturday morning cartoon tactics to entice the easily persuaded amongst us.  It’s like they’re saying “Hey, kids!  Join the US National Guard so you can be cool like Dale Earnhardt, Jr.!  Never mind your soul-searching about living with yourself after you’ve killed people…it’ll be like being in a music video where you win a stock car race!”  It speaks only to the superficial part of all of us who wants to be the popular kid in school and disregards the part of us that makes us human.  I respect those in the military because they do look inside themselves and can answer those tough questions. I think this kind of marketing is hitting below the belt because it attempts to override any of those questions.

 

I know there are those who will disagree with me fiercely and say something akin to how great it is that Three Doors Down, Kid Rock, and Dale Earnhardt, Jr. are just being supportive and patriotic.  That may be the case but none of these celebrities will ever be serving in combat.   And, unlike those they’ve helped to convince to join the National Guard, they will not be doing the killing or dying for them.

New Media. Not Just For Youngsters Anymore.

Conventional wisdom assumes new media is for the young.  I really dislike conventional wisdom.  So I started Googling to see if I could find some statistics that would help me make my case that new media marketing can be significant for any age bracket. 

I started with mobile phone marketing.  Certainly the youth demographic is the most active in mobile phone usage.  That doesn’t mean, however, that more mature crowd is unreachable through mobile marketing.  According to the Mobile Marketing Association a 2006 survey of over 1,800 consumers aged 13 to 65 showed that, while younger respondents had the highest interest in mobile messaging, respondents overall are becoming more comfortable with mobile functionality. The study showed:

·         69% of respondents use text messaging

·         44% use mobile phones to communicate daily

·         Respondents preferred mobile marketing in the form of downloads, coupons, and alert-based services

·         Voting campaign participation increased from 8 percent in the 2005 study to 29 percent in 2006

According to research published in 2007 by InsightExpress, Baby boomers are not much different than consumers under 25 when it comes to adoption of mobile technology.  In addition to mobile technology, social networking and texting are becoming increasingly popular among the boomer population which is good news for marketers who are trying to reach older consumers in a new way.

 

The study showed that mobile phone penetration is not limited to the younger demographic.  Although Gen Y (18-24) is the highest at 85%, Gen X (25-44) follows closely at 82%, younger baby boomers (45-54) at 80% and older baby boomers (55-64) at 79%. 

 

Mobile marketing company HipCricket’s  Jeff Hasen, states: “While some believe texting is a young person’s activity, the average age of texters is 38…The fastest growth group is folks 35-54. The mobile phone is a personal device – and the ideal way to reach boomers who opt in for information, reminders and offers.”

 

Another surprising item is that Baby Boomers apparently enjoy social networking sites more than anyone thought they would!  Entertainment Trends in America, a study by The NPD Group, found that:

 

·         41% of baby boomers have visited social networks

·         61% have been to sites with streaming or downloadable video.

 

The good news for marketers is that this, too, is a new way to reach the older markets.  The bad news is that they haven’t been taking advantage of it in a meaningful way.  BMW used Facebook as a medium to promote its new 1-Series.   But they are the brave and the few of the mature brands doing so.  This is a real shame because a Forrester study found that only 14% of those 55 and over use social networking sites to actually socialize compared to 41% of 18 to 24-year-olds.  So Boomers are using these sites to get information.  Any place where people are going to get information is a good place to be if you’re selling something.

 

So a little bit of time spent on Google proved to be fruitful for me in my quest to disprove convention once again.  It’s tempting to assume that new technology s frightening to older people.  But it seems as though it is not exactly accurate to do so.

Working In The Data Mines…

It’s been discussed and debated around the world and the question still remains: Is data mining ethical?  For those who know me, my answer won’t be a great surprise.  I think data mining can be unethical but that is not inherently so.  The collection of information is a harmless act if the person whose information is being collected has given their consent and they are aware of the manner in which their information will be used.  And that’s where the controversy begins.

According to a study by Cyber Dialogue, 69% of American internet users were unaware that they had given their consent to be included on various email lists.  All one has to do is frame the question just so and add a default check mark in an unobtrusive place and *PRESTO!* you’re on a direct email list.  Hooray!  What is really disturbing about this kind of tactic is that an organization that is collecting email addresses in such a manner is doing such an ineffective job.  So what if they have an email list of thousands of addresses?  If 69% of those people don’t want to be on the list in the first place they aren’t likely to be a good sales lead.  And what’s worse is Return Path has found almost 20% of email marketers continue to send messages even after the receiver requests to be unsubscribed.  It, unfortunately, gives credence to the argument that those who make a living in marketing and sales have cloven hooves for feet and would sell their children for a buck.

On the other hand, data mining can be done in an ethical manner.  Firstly, more and more research is being done that will allow data collection while keeping the consumer anonymous.  Secondly, if consumers were educated regarding why ethical data mining could benefit them in the long run they may be more willing to cooperate.  Data mining can, amongst other things, can analyze buyer behavior.  When an organization uses information discovered using data mining they are certainly going to benefit from it.  But so is the customer.  In the example provided by Bill Palace, both parties had the potential to benefit from data mining:

 

“For example, one Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy beer. The retailer concluded that they purchased the beer to have it available for the upcoming weekend. The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the beer display closer to the diaper display. And, they could make sure beer and diapers were sold at full price on Thursdays. “

Certainly the grocery store will benefit by not offering a discount on Thursdays but the consumer will benefit also by the convenience of having the two items they most often purchase together near each other.

In short, it’s not data mining that is wrong.  It is the way the information is being used and the underhanded way many marketers are going about doing data mining that is labeling it unethical.