ADAPTING THE PIPELINE

Running the Business of Emerging Marketing Disciplines Brandon Holmes Managing Partner WELD @brandoNRG brandon@weldtheweb.com

Business Stuff Pipeline Value Proposition Profit Model What You’re in For…

Business Stuff

Pipeline

Value Proposition

Profit Model

What You’re in For… Industry Stuff Disruption Media Journalism Marketing

Industry Stuff

Disruption

Media

Journalism

Marketing

The Pipeline What marketers propose to do and how we propose to do it is changing…

What marketers propose to do and how we propose to do it is changing…

The Pipeline

Value Proposition An idea that will help customers do more affordably, effectively, conveniently a job that they've been trying to get done It's critical that you figure out how you help them do what they've already been trying to do, but more affordably and effectively

An idea that will help customers do more affordably, effectively, conveniently a job that they've been trying to get done

It's critical that you figure out how you help them do what they've already been trying to do, but more affordably and effectively

Value Proposition Identify target customer, the job to be done and the offering Most common barriers to getting a job done: Wealth / Access / Time / Skills

Identify target customer, the job to be done and the offering

Most common barriers to getting a job done: Wealth / Access / Time / Skills

Internal UVP For mid-market organizations and business units of larger organizations, Who need to improve marketing ROI and growth performance in the online environment WELD is an Integrated Digital Marketing Company…

For mid-market organizations and business units of larger organizations,

Who need to improve marketing ROI and growth performance in the online environment

WELD is an Integrated Digital Marketing Company…

Internal UVP That plans and executes data-driven, pay-for-performance Internet marketing programs Designed to increase word-of-mouth through effective use of emerging Web technologies Unlike companies A, B and C and via processes X, Y and Z

That plans and executes data-driven, pay-for-performance Internet marketing programs

Designed to increase word-of-mouth through effective use of emerging Web technologies

Unlike companies A, B and C

and via processes X, Y and Z

Profit Model: How Do You Make Money? Revenue Model Cost Structure Margin Model Resource velocity

Revenue Model

Cost Structure

Margin Model

Resource velocity

What’s New?

Adapting to Disruption "While many industries will be forced into radical transformations and upheaval, none will be more affected than the Media, Marketing and Advertising trade” Lee, 2006 http://www.marketing.fm/2006/03/06/the-end-of-the-big-advertising-agency/ The End of the Big Advertising Agency

"While many industries will be forced into radical transformations and upheaval, none will be more affected than the Media, Marketing and Advertising trade”

Lee, 2006

http://www.marketing.fm/2006/03/06/the-end-of-the-big-advertising-agency/ The End of the Big Advertising Agency

Adapting to the Economy " Marketing is under pressure . In times of recession and downturn even more then before the various stakeholders require higher degrees of accountability and return on investments made, while budgets are cut…

" Marketing is under pressure . In times of recession and downturn even more then before the various stakeholders require higher degrees of accountability and return on investments made, while budgets are cut…

Adapting to the Customer On the other hand, consumers and customers tune out the marketing communication that is fired at them."

On the other hand, consumers and customers tune out the marketing communication that is fired at them."

Disruption in News "The economy has caused an immediate problem, but the business model for newspapers, based on circulation and advertising revenue, is broken." Senator Ben Cardin (D-MD) May 25, 2009 http://www.boston.com/business/articles/2009/03/25/newspapers_could_get_nonprofit_status/

"The economy has caused an immediate problem, but the business model for newspapers, based on circulation and advertising revenue, is broken."

Senator Ben Cardin (D-MD)

May 25, 2009

http://www.boston.com/business/articles/2009/03/25/newspapers_could_get_nonprofit_status/

Disruption in the Ad World On January 19, 2009, Financial Times reported that social networks threaten advertising growth: according to the Institute of Practitioners in Advertising (IPA), two-thirds of advertising agencies are not prepared for the industry changes prompted by social networks and new forms of digital media. http://www.ft.com/cms/s/0/45e61636-e25c-11dd-b1dd-0000779fd2ac.html?nclick_check=1

On January 19, 2009, Financial Times reported that social networks threaten advertising growth: according to the Institute of Practitioners in Advertising (IPA), two-thirds of advertising agencies are not prepared for the industry changes prompted by social networks and new forms of digital media.

http://www.ft.com/cms/s/0/45e61636-e25c-11dd-b1dd-0000779fd2ac.html?nclick_check=1

The Result…@adagencylayoffs

The Result…

“ The Great Satan”

OMG…WTHAWGD?

The Systematic Factors Enablement of individuals to create, distribute and monetize content. Connectivity of people, processes and economic exchanges. Disruptive technological advances that accelerate social, political, organizational and economic change.

Enablement of individuals to create, distribute and monetize content.

Connectivity of people, processes and economic exchanges.

Disruptive technological advances that accelerate social, political, organizational and economic change.

The Systemic Factors Constant change and discovery of how the new media both creates new models and destroys old ones.

Constant change and discovery of how the new media both creates new models and destroys old ones.

The Business is Changing… “ We (those of us in the business of communication) are defining and directing the future of journalism every day…in what we do.

“ We (those of us in the business of communication) are defining and directing the future of journalism every day…in what we do.

“ creating new media opportunities; developing new and immediate relationships with audiences; taking news and information directly to audiences, where they live, work, talk and read;

“ creating new media opportunities;

developing new and immediate relationships with audiences;

taking news and information directly to audiences, where they live, work, talk and read;

“… understanding that the 4th estate always has the same mandate no matter where its housed, who "owns" it or what execution or delivery route it chooses)

“… understanding that the 4th estate always has the same mandate no matter where its housed, who "owns" it or what execution or delivery route it chooses)

“ We also direct and define the future of journalism (marketing, communication) by what we don't do (by digging in our heels and refusing to embrace the changes that are core to the philosophy of news and reporting;

“ We also direct and define the future of journalism (marketing, communication) by what we don't do (by digging in our heels and refusing to embrace the changes that are core to the philosophy of news and reporting;

“ by ignoring our audiences or by assuming they should "follow" us rather than our "following" them;

“ by ignoring our audiences or by assuming they should "follow" us rather than our "following" them;

“ by believing that journalism is based on dogma and articles of creed rather than on trust, credibility and our relationships with readers; by refusing to understand that the work of journalism in America has always depended on successful business models of delivery;

“ by believing that journalism is based on dogma and articles of creed rather than on trust, credibility and our relationships with readers;

by refusing to understand that the work of journalism in America has always depended on successful business models of delivery;

“…and by confusing the future of journalism with the future of current models of delivery.” Chris Martin, VP University Advancement, WVU Follow Chris on Twitter @ctonk144

“…and by confusing the future of journalism with the future of current models of delivery.”

Chris Martin, VP University Advancement, WVU

Follow Chris on Twitter @ctonk144

Let’s Look at New Models News: Global Post Social Media: Izea and PayPerPost Virtual World: Millions of US

News: Global Post

Social Media: Izea and PayPerPost

Virtual World: Millions of US

Entrepreneurship in IMC? Philip Balboni recommends that journalism schools should teach entrepreneurial skills. Balboni's work with Columbia journalism students on Global Post was one of many academic-professional partnership ideas mentioned throughout the conference.

Philip Balboni recommends that journalism schools should teach entrepreneurial skills.

Balboni's work with Columbia journalism students on Global Post was one of many academic-professional partnership ideas mentioned throughout the conference.

Global Post A Web Site’s For-Profit Approach to World News

A Web Site’s

For-Profit Approach

to World News

Global Post 65 full-time journalist $1,000/mos for freelancers Cuts office costs Journalists receive equity stakes $199/year subscription (Freemium) Sell stories to newspapers Ads

65 full-time journalist

$1,000/mos for freelancers

Cuts office costs

Journalists receive equity stakes

$199/year subscription (Freemium)

Sell stories to newspapers

Ads

Value Viral Marketing To encourage value viral marketing, companies must tailor the product or marketing message to the target audience, be relevant and appeal to the customer's perception of value.

To encourage value viral marketing, companies must tailor the product or marketing message to the target audience, be relevant and appeal to the customer's perception of value.

Value Viral Marketing Marketers cannot purposely create this type of campaign for a product, service or content. The product alone must be good enough to create 'chatter'. http://wiki.media-culture.org.au/index.php/Viral_Marketing_-_Types_-_Value_Viral_Marketing

Marketers cannot purposely create this type of campaign for a product, service or content.

The product alone must be good enough to create 'chatter'.

http://wiki.media-culture.org.au/index.php/Viral_Marketing_-_Types_-_Value_Viral_Marketing

Enter the “Sponsored Conversation”

Sponsored Conversation “A sponsored conversation is a social media marketing technique in which brands provide financial or material compensation to bloggers in exchange for posting social media content about a product, service or website on their blog.” www.izea.com

“A sponsored conversation is a social media marketing technique in which brands provide financial or material compensation to bloggers in exchange for posting social media content about a product, service or website on their blog.”

www.izea.com

Sponsored Conversation

Sponsored Conversation

Virtual Worlds Marketing Millions of Us Immersive brand marketing through virtual worlds, multiplayer online games, and social media. Blend of narrative with social and gaming elements creates experiences that take brand engagement to a new level.

Millions of Us

Immersive brand marketing through virtual worlds, multiplayer online games, and social media.

Blend of narrative with social and gaming elements creates experiences that take brand engagement to a new level.

Millions of Us “ We create value at the intersection of the real and virtual worlds.” www.millionsofus.com

“ We create value at the intersection of the real and virtual worlds.”

www.millionsofus.com

Google Lively – “L.A. Hardhats”

Lively Closes December, 2008

Predictions In his book “The World is Flat”, Thomas Friedman strongly urges businesses to develop a model and structure that is highly adaptable to change. He warns that jobs, industries, and entire careers will be born and die due to the rapid pace of technology.

In his book “The World is Flat”, Thomas Friedman strongly urges businesses to develop a model and structure that is highly adaptable to change.

He warns that jobs, industries, and entire careers will be born and die due to the rapid pace of technology.

Predictions This will prove to be very true for the future of Markteting, Advertising and Public Relations.

This will prove to be very true for the future of Markteting, Advertising and Public Relations.

The New Agency…. … will constantly embrace change and technology in order to survive unlike its predecessors whose fates lie with the dinosaurs.

… will constantly embrace change and technology in order to survive unlike its predecessors whose fates lie with the dinosaurs.

Our opportunity Entrant companies beat incumbents Established company asks, should we invest to create a new business model New companies create what needs to be created

Entrant companies beat incumbents

Established company asks, should we invest to create a new business model

New companies create what needs to be created

Even the Pope has an iPod

Change is here. How are you adapting the pipeline? Brandon Holmes Managing Partner WELD @brandoNRG [email_address]

Brandon Holmes

Managing Partner

WELD

@brandoNRG

[email_address]