“THE TWO CULTURES” - C.P.
SNOW Scientists vs. Artists “...of a problem which had been on my mind for some time. It was a problem I could not avoid just because of the circumstances of my life. The only credentials I had to ruminate on the subject all came through those circumstances... Anyone with similar experience would have seen much the same things and I think made very much the same comments about them.”
MY CIRCUMSTANCES I’m an ad
agency guy... At a digital agency... Who used to work at Internet startups... After I went to art school...
I BEGAN TO NOTICE... I
was the only agency guy at a technology event I didn’t see marketing talent in startups I heard arguments about the merits of advertising and branding
I BEGAN TO NOTICE... I
didn’t see startup folks at marketing events I heard programmers not interested in agency careers I saw good ideas die in agencies from lack of understanding
MADISON AVE VS. SILICON VALLEY
Brand builders and Business builders Greater brand demands on Silicon Valley Greater technology demands on Madison Ave See themselves as distinct, but the lines are blurring
WHAT’S TODAY ABOUT? A simple
premise... Startups need a little more marketing chops Agencies need a little more technology chops Focus on what’s working 5 lessons from each Begin the conversation
1. PROVE YOUR CONCEPT Ad
agencies are often too stuck on the “big idea”, and sink huge advertising budgets into single campaigns What if you treated campaigns more like how startups create proof of concepts? Smaller, more “iterative” campaigns
2. DRIVE EARLY ADOPTION Agencies
are often fast-followers, not early adopters If you only look at what your customer are currently comfortable with, you’ll always be behind Silicon Valley is great at pushing adoption
APPLE AND APPS Downloading applications
was a foreign experience Now, 27% of mobile phone users download apps Apps downloads surpassing iTunes music downloads Source: Deloitte, 2009; Asymco, 2010
3. MARKETING WITHOUT MEDIA Agencies
are conditioned to believe media spending is how you drive traffic How can you explore more than just media spending? Silicon Valley looking more to partnerships, word-of-mouth and PR to drive growth
TWITTER AT SXSW SXSW in
2007 one of the tipping points for Twitter Partnership with SXSW to have Twitter on screens in the Austin convention center Tripled user-base over that weekend Source: Twitter blog, 2007
APPLE AND EDUCATION In the
early 80s, Apple had huge success through partnership with education Donating a computer to every public school in California, prompting additional purchases
4. STRUCTURE FOR INNOVATION Agencies
have a narrow definition of creative teams, that often doesn’t include technology Question standard “roles” Collaboration at every stage Give a vested interest in success
T-SHAPED PEOPLE “We look for
people who are so inquisitive about the world that they're willing to try to do what you do. We call them "T-shaped people." They have a principal skill that describes the vertical leg of the T... But they are so empathetic that they can branch out into other skills and do them as well.” - Tim Brown, IDEO
HOW CAN THE CROWD HELP?
Crowdsourcing doesn’t mean you have to get rid of the creative department... or lose control When might it be appropriate?
5. EXPLORE NEW PRODUCTS Agencies
are service businesses... compensation is based on hours put in Many agencies create products to help them service clients Agencies have ideas beyond marketing Agencies need to explore new products, just as startups explore new products as they grow
TWITTER FROM ODEO “We were
forced to reinvent ourselves. Reinventing the company started with a daylong brainstorming session where we broke up into teams to talk about our best ideas.” - Dom Sagolla Are agencies meeting on a regular basis to “reinvent” themselves? Or explore new products/services?
1. MAKE BRANDING TOP PRIORITY
You can build traffic You can build revenue But are you building a brand? Branding should be intentional... not figured out as you go
WHAT IS A BRAND? A
brand is not a logo... A brand is not a tagline... It’s a promise It defines what you stand for It can drive preference, and adds value It can also begin to create culture
THE FACEBOOK BRAND Brandz -
Millward Brown annual study of top brands Value a combination of earnings and brand perception Facebook usage is ubiquitous, but how strong is the brand?
THE ZAPPOS BRAND Zappos has
a much clearer brand identity, but it’s a much stronger inward-facing brand “For us our number one priority as a company is company culture, and our whole belief is that if we get the culture right then most of the other stuff like delivering great customer service or building a long-term enduring brand will just happen naturally on its own. It's one thing to read about our culture, and it's another thing for me to talk about it, but really the best way to get to know what it's like is to come and take a tour.” - Tony Hsieh, NPR Marketplace How do customers understand the brand?
2. ADVERTISING WORKS It works
as a way to build your audience When done correctly, it can return a measurable, positive ROI Many startups rely too much on word-of-mouth
ZAPPOS “I'd rather spend money
on things that improve the customer experience than on marketing.” - Tony Hsieh But less reliance on advertising and marketing doesn’t mean NO reliance on advertising and marketing
WHY ADVERTISING? Advertising is a
catalyst for word-of-mouth Some of the most successful “viral” campaigns had significant advertising budgets behind them “Viral” is what happens after you get exposed
YES, EVEN OFFLINE ADVERTISING Sometimes
offline advertising might work best 10% advertising spent online, but 21% still spent on newspapers, almost 11% still spent on magazines In some cases, online isn’t always cheapest Source: eMarketer, 2010
REVENUE GENERATOR Advertising is also
a revenue generator Shift in the business models being used by startups? Two biggest mobile ad networks bought by Silicon Valley firms, and companies slated to increase mobile ad spending dramatically over next several years Charge for your app, or get ad revenue? Or both?
3. BUILD RESEARCH INTO YOUR
DNA Beta isn’t the only way to test Test BEFORE beta Agencies take consumer research seriously Focus groups, brand tracking studies and more...
FIND SIMPLE WAYS TO DO
RESEARCH Small investments in research can have huge returns before you spend on advertising Market sizing Segmentation studies Price-resistance testing
A FEW TOOLS TO HELP
Online surveys: E-Rewards.com Category research: Compete.com Usability testing: Usertesting.com Social Media Monitoring: ScoutLabs.com
4. GET PITHY Agencies are
experts in communication Masters of the “pithy” Sometimes it’s not what you say, but how you say it
MOST RECENTLY... FACEBOOK PLACES **ACTION
IMMEDIATELY** - Facebook launched Facebook Places yesterday. Anyone can find out where you are when you are logged in. gives the actual address & map location of where you are as you use Facebook. Make sure your kids know. TO UNDO: go to"Account", "Account Settings", ... See More."Notifications",...then scroll down to "Places" and uncheck the 2 boxes. Make sure to SAVE changes and re-post this! “There is a false rumor that Facebook shares your location without your knowledge or consent. You control your information on Facebook. With Facebook Places, you choose when to share your location by checking in or allowing friends to check you in. Your location is never given to anyone automatically.” - Facebook
5. MARKETING LEADERSHIP Most startup
partnerships rely on technology and business talent, but marketing should be core leadership Agencies created a new role... account planner Bridge between business and creative Consumer insights and research Make advertising more relevant
THE METHOD STORY Method founded
by an account planner, Eric Ryan Saw a need in the marketplace Began with brand building in mind and made a promise in the marketplace Creative as important as the product Different approach to working with agencies
WHO IS THE MARKETING LEADER?
Many startups only consider advertising sales as the marketing leadership within the business “He said that in the early days Facebook made a point of hiring programmers even for jobs that would not ordinarily consist of programming, like HR and marketing.” - Paul Graham, What Happened to Yahoo Who is the CMO of the startup? If it’s you, should it be?
LESSONS FROM SILICON VALLEY 1.
PROVE YOUR CONCEPT 2. DRIVE EARLY ADOPTION 3. MARKETING WITHOUT MEDIA 4. STRUCTURE FOR INNOVATION 5. EXPLORE NEW PRODUCTS LESSONS FROM MADISON AVE 1. MAKE BRANDING TOP PRIORITY 2. ADVERTISING WORKS 3. BUILD RESEARCH INTO YOUR DNA 4. GET PITHY 5. MARKETING LEADERSHIP
CONVERSATION What other lessons are
there for agencies or startups? Who else is doing it right? More feedback at LinkedIn Group: http://linkd.in/madisonvalley firstname.lastname@example.org http://www.blog.clickhere.com http://www.randomculture.com @randomculture