Change is Inevitable

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Consumers Warming to Mobile Ads

In the past, mobile advertising did not look to be an appealing form of lucrative advertising, but with growth in texting and mobile use it seems an almost inevitable norm. With this rise in mobile phone application and texting, consumers are also warming up to the idea of seeing advertising on their phones, which has given advertisers this “third screen” availability (after television and computers).

The first issue for mobile marketers comes with figuring out how to target the right market. According to an eMarketer.com article, nearly half of teen mobile users (ages 13 to 19) in the US said they would be “at least somewhat interested” in accepting mobile ads. That is, as long as they get something in return. And the mobile teen population in the US is a growing audience, at more than 16 million in June 2008. Mobile ads may be slightly less popular among adults, but not by much.

Giving users some sort of incentive seems to be the key for adults, as well. A Los Angeles Times article notes that while only 9% of people feel that advertising on their cell phones is acceptable, 31% agree that it is acceptable if it lowers their bill. A second study mentioned in the same article states that 43% of people interviewed said they were amenable to receiving "offers or deals" on their phones from merchants they select.

Personally, I would be much more accepting of mobile ads with an incentive, whether that be a reduction in my monthly cell phone bill or coupons for products I regularly buy. I also feel that solicited ads are more acceptable, as well as mobile search and in-game advertising. On the flip side, I would be quite annoyed if I were to receive random text message ads from a service for which I did not sign-up, or if the ads were highly disruptive to simple phone functions.

This insight into users’ acceptance of mobile ads gives marketers a leg up as this segment of the industry grows. Mobile ads may become as commonplace as commercials and billboards, perhaps sooner than we think. We are recording television shows so that we can fast-forward through commercials, but are we ready to accept the third screen ads instead?

Will Simple Be The New Black?

While perusing AdAge, this article by Steve Ruebel made me think about where Website development will be going over the next few years.

He talks about cloud computing which can be simply explained as storing data online and relying on Web applications vs storing data on your computer and relying on what is installed on that machine.

For example, in my household, backing up photos is becoming less of a critical task, as all of our priceless memories are stored in full-resolution on Flickr. And not only does it act as a storage medium, but also between it and Photoshop Express, most simple photo editing is available without even accessing software on my machine.

Additionally, students are no longer having to ensure that they have purchased and installed Microsoft Word, what has been the de-facto standard for production of their college papers. Instead, they can use Google Apps to not only process their documents, but also save them to the Web (no more lost term papers when the hard drive crashes) and even collaborate with classmates. I tell you, even though I am only a short span out of grad school, these innovations would have been quickly adopted and most immensely appreciated (driving 30 miles for a quick meeting with group members wasn't so great on a 50+ hour per week schedule).

Aside from the obvious innovations, adoption has been driven by rise of mobile computing (remember the transitional period when you used your laptop, but still treated your desktop as "home base"?) as well as public computing - libraries, colleges, even at the workplace. We're getting more and more used to using a number of machines, as the online space is becoming more of an integral part of our everyday lives. With that, we become less tolerant of access to our data on only one machine, or even worse - spreading it between different places, making sure it's in sync, etc. It's like the story of me and the dozen places that I need to publish any new music that I acquire - my iPod Shuffle for working out, my Zune for trips, my car stereo system, my MacBook, my BlackJack II - ::sigh::.

And then there's the iPhone. This might be the disruptive innovation that brings it all together. With its [relatively] paltry storage and limited Web abilities, yet demand for access to content from anywhere, people will rely more and more on their data being stored on the Web.

But as demand for iPhone-friendly access grows, interfaces will need to either be designed exclusively for the iPhone, or the main sites will need to become more simply built, to allow convenient access from any point.

As of now, all of the major sites have (or should have) an iPhone friendly counterpart. But as adoption rises and they replace laptops as the top mobile computing platform, will those in charge of the Web properties get sick of having to develop two different sites?

This is not to say that Laptops are going anywhere. By no means. However, it's more likely to see them continually edge out their desktop counterparts and serve more of the "home base" role. Functionality that caused users to rely on their laptops will become more slick and usable on the iPhone (and its competitors - as if there really were any).

And it's quite possible that the zealots who hold out on the iPhone and keep lugging the lappies (that's slang for laptops) will start to adopt feature-inept, but cheap, ultra-portables. We're not talking the MacBook Air (at the current and likely future price points, it will never see true mass adoption). We're talking the Acer One, a product that can be currently had for what one might pay for an iPhone - around $350. It's modest performance specs functionally classify it more as a thin client than a real laptop.

Though improvements are inevitable, they can go in two directions - toward mobility or toward performance. As online apps continue to shoulder even more of the load, the logical path is toward more enhanced mobility. This would support the likelihood of a trend toward more simple Websites.

So let me pose the question: Will simple be the new black?

Will we see a downturn of flash-heavy sites and a trend toward clean, simple, more widely accessible offerings? Or will iPhone/mobile departments become a staple of the Web development world?

Vista Just Can't Catch A Break

As we all know, Vista has had a rough life so far. From random bad press throughout the blogosphere to Apple poking fun at their middle-aged, nerdy personification, things haven't been easy.

As Matthew Creamer pointed out in his article on AdAge, Microsoft has put together a campaign to help dispel at least some of the bad buzz that it has befallen.


The campaign, dubbed The "Mojave Experiment" uses hidden cameras to document potential users' feedback as they test a new operating system called "Mojave". After trying, and being impressed by this new Operating System, they are told that what they have been testing is actually Windows Vista. The campaign focuses on their excitement about the new operating system and their change of heart as the rumors that they have heard are dispelled.

Overall, the videos themselves are rather compelling, but Matthew of AdAge doesn't really think so. However, it has to be questioned whether this is really an objective opinion, or just another online voice that sees the fun in kicking them while they're down.

The critique calls for various perspectives and more of a user's perspective. This goes against the goal of the campaign which is to focus on the customer. And with all of the recommended additions, it would be boring and unwatchable.

Another complaint is that it does not entertain. Who said that must always be the case? Here instead, the goal is to inform. The user will not likely be drawn to the campaign on entertainment value (Apple ads are there for that) but instead on curiosity. I have not viewed Microsoft's methods for drawing to this site, but they would be well positioned to dare their target's inquiring minds.

The videos themselves are rather compelling. The fact that the Operating System is not seen makes the viewer want to go out and take a look at it themselves. This campaign is obviously targeted toward someone who hasn't had a hands-on experience with Vista, and compels them to do so.

I don't expect it to be a huge hit. Microsoft knows that they cannot compete with Apple here. However, it's not a lousy effort. In fact, as Creamer points out the approach of customer reaction is quite similar to another campaign put together by Microsoft's Agency, Crispin Porter & Bogusky "The Whopper Freakout", which also focused on customer reaction. What makes this of less value?

Ultimately, it will all come down to whether they will be able to draw the right crowd who has heard the wrong buzz to the site. I believe the videos are compelling enough to at least lay some doubt on their negative preconceptions, but time will tell.

Why not watch some videos and decide for yourself? Leave a comment and let me know your thoughts.

Enhance Customer Retention Digitally: Cross-Channel Communication Strategies

The Mack & Mark POV

Below you will find a synopsis of Doug White's breakout from the recent Frost & Sullivan Marketing World event held in Beaver Creek, Colorado.

Facilitator: Doug White, MindComet

Thought Leader Panelists included Mack & Mark:
Mack McKelvey, Senior Director of Marketing, XM Satellite Radio
Mark Mendelson, Head of Business Communications, LyondellBassell Industries

Key Take-Aways:
How to build and enhance customer relationships across channels including email, online communities, blogging and Web 2.0/social media
How to leverage and incorporate existing communication components and strategies into the digital mix - where and how to start
How to segment and develop relevant digital communications through relationship marketing

Moving People from Customers to Fans
Let’s first review the challenge...
Mack, “Speaking to the customer is difficult regardless of industry. Everyone has specific reasons for coming to XM - they want to be communicated to in relevant ways, in their language with appropriate mediums. We (marketers) don’t inherently know that data, we have to find it out. Our issue is moving people from customers to fans. First figure out who they (potential fans) are and make it so relevant that they don’t even know they are being communicated to. We are constantly in testing and modeling - we determine places to jump into the conversation.”
Mark, “I’ll speak to BtoB. We are industrial and so are our customers. We sell to large complex organizations. We have to get to segmentation by function. I started out in sales. The sales organization is the bedrock - as marketers we have to ask ourselves, ‘are we helping the sales team?’ The next step is understanding the manifestation - there is a vast array of people the sales organization can’t get to. If (marketing) can help sell, then we are helping. Email, web presence, etc. are designed to help the sales organization.”
Creating Rock Stars & Asset Management Significance
Determine creative ways to procure assets, from within the organization and through user channels. Then determine relevant places to repurpose and place those assets to deliver significant value back to the end user.
Mark, “Our C level is focused on press releases, interviews and how to create ‘rock stars’ - we do that. It is complicated and personal - everyone wants to be in the media, in releases and gain exposure. To allow our team to function efficiently we have to be able to repurpose - taking the interview and placing it in other places such as the website.


Start the Conversation & Get Out of the Way
Part of engaging target audience through social media is determining an effective way to start the conversation allowing the end users to then spread the word. It’s also important to establish monitoring and feedback strategies for these channels.
Mack, “We look at our subscribers (customers) and create an on-boarding experience based on the initial service transaction. Onboarding is incredibly complex - then we have to keep the customer, which is where it gets difficult. I have to remind the customer ‘why’ he/she should stay - we don’t actually have to do that. We are starting the conversation and then getting out of the way.”
Mack, “We market to 45 white males. We also have to manage to the influencers - children. We all have different needs - my daughter finds out what to listen to through her social networks. We try to encourage the conversation so we don’t have to do direct marketing to the tween audience.”
Mack, “You have to figure out ‘where’ the conversation is happening, even if you don’t do direct marketing through those channels - such as Facebook. You also need to have an overarching customer database to store all of the campaign data that will allow you to communicate effectively.”

The Face of the Customer
To play off of Keith Pigues keynote earlier in the day, Doug continues the stream of consciousness discussion.
Doug, “We (marketers) have to define the goals and customer values prior to developing customer lifetime messaging. We sometimes don’t have the luxury of taking a step back and creating a strategy for messaging - we tend to place communications ad hoc based on deadlines and timing. How are both of you tackling this challenge?
Mack, “Look at the face to your customers - for us its our ‘on-air’ talent. Our subscribers want to interact with them, not with marketing. The talent is having the direct communications. We provide the tools and allow our talent to have the conversations.

Managing Chaos
How are you managing Chaos?
Mark, “I’ve seen some spectacular CRM failures in the past. You also have to aware of new legislation - our email is handled out of Europe. There are mechanical issues. What we’ve tried to do is leverage company power centers - for us it is our sales directors. We tend to create small wins and then add on to that strategy.
“One of the biggest challenges in BtoB is employee churn - the databases become way obsolete. I’m for focusing on the customer data first. Every CRM program I’ve ever seen is an upside down pyramid - we ask the sales team to put all of this info in, so that the marketing team can use it. It should be a few people doing the work to support many.”

Don’t Message to Dead People
This is common sense, but the panelists feel there is more to it...
Mark, “Don’t message to dead people.” He went on to explain that they were actually doing this because the data in their system was stale and the challenge of keeping up with list hygiene and user preferences.
Doug, “Allow customers to manage their own data. They do it because the value that is reciprocated is important and visible.
Mack, “Poor customer experience leads to poor satisfaction scoring and retention falls suite.
Doug, “Ask your customers how they want to be messaged to.”
Mack, “We are creating a preference center housed online that will eventually migrate into our database. We are going to do some interim marketing and testing based on this.
Mack, “Whenever I got to stay at a hotel or purchase something, if they don’t have a review I won’t purchase. I’m a Marriott reward member - if there wasn’t an opportunity to have a dialogue. Risk v. reward - engaging customers that are most likely to review will be the people with the ‘best’ and ‘worst’ experiences.
Mark, “From a regulatory standpoint we struggle with the same questions. To balance - it’s a common challenge for customers to figure out how to use the product. “How do I use this thing” That’s generally the gap - the customer base needs to receive more information on your product. The future of BtoB is social media and community for dispersing this information. It is possible to create a community around ‘how do I use this thing’ - but you have to disassociate your company, which breaks the legal liability. This is a ‘tight-rope’”

My Final Thoughts
The way in which consumers find, digest and spread media has changed dramatically and will continue to do so as technology evolves - which also has influence on messaging and communication methods. In order to get in front of the right audience you have to figure out a way to get in front of key influencers and allow others to be referred/influenced as a result; therefore, 'finding' your brand/product/service/etc. There are a lot of different ways of seeding this initial piece including display ads, social media, conversation starters, reviews, etc. It is ignorant to think that people will find your product/video/etc. simply by making it available. It is essential to create a realistic budget for getting things kick started & driving traffic and not spending the entire fund allotment on the development of a widget/site/video/etc...

Is Google making a phone or not?

As you may or may not know, back in 2007 there were rumors that Google was coming out with a phone, called the Gphone. In November of 2007, Google put the rumors to rest. They announced that they were not making a Gphone. Everyone got the hint and put the rumor on the back of their minds, but this rumor is starting to surface again. On Sunday, July 13, Google co-founders Larry Page and Sergei Brin and CEO Eric Schmidt were making statements about building it. So, only time will tell whether or not it will come out.
If and when the phone comes out, the iPhone will have a solid competitor because Google will use their software Android. Android is open to all phones but the iPhone is refusing to use it because they have their own software program.
Android is an open source which makes it easier for marketers to add applications. For example, a marketer creates a game and wants to put it on a phone. That marketer can download it on Android with their advertisement attached to it. While other phones it is harder to do so. When using Android, the applications are used more like a gadget. The consumer finds the application they want, downloads it then they go on with their life. The iPhone you have to go through a process, software has to bought to download then an approval from iPhone. There are also numerous reports saying that a number of iPhone applications are crashing. Android has a "no hassle" advantage over the iPhone. You can now download the Android SDK.

Facebook vs Myspace

Facebook is a fast growing social networking site that has its competitor, Myspace, sweating bullets. Myspace has been sitting comfortably on top of the world for years, when it comes to social networking. The other day News Corp.’s Myspace CEO Rupert Murdoch spoke out about Facebook’s recent success, “They’ve not monetized as well as us. They’ve done a great job of being the flavor of the month the last six months of last year.” “Flavor of the month?” In the past year, Facebook has grown a steady 89% with no sign of slowing down while Myspace has grown less than 10%. Myspace does acknowledge that Facebook is a credible competitor so Myspace has been making changes to their site. This week, they revamped their homepage with new advertising options and there will be more improvements to come.

Even though Myspace has more than double the amount of Facebook users, I think the changes that Myspace is making may be a little too late. Facebook took advantage of this slack and is on the fast train of being ahead. If Myspace wants to stay in their cozy number one spot, they will have to stay one step ahead of their competitor. I predict that Facebook will become the number one social networking site one day, soon. It seems that Facebook is making moves to be on top while Myspace is slow to do so. Time will tell!