Digital Disconnect

Over the Christmas holiday, my family and I traveled to Charleston, SC to have some low key quality time together.  I noticed something which  I found fascinating - three woman and one teenager were sitting in the airport coloring in a very meticulous coloring book.  

I asked a few of the ladies and the teen the reasons for taking up what I thought to be a child’s activity.  The answer I got was interesting… they said they were “burned out” on technology and this was a way to escape the digital world we live in, if just for a few hours.

This “escape” became clear, when I looked upon those in the airport and 90% of the travelers were staring into a small phone screen.  I use the words “into a small phone screen” on purpose.  They seemed to be so transfixed on the phone for hours, ignoring much of what was going on.  In fact, two individuals missed their flight because they were transfixed on the screen.   They didn’t hear the announcement of the flight, nor did they hear their names being called out for the “last call.”

As a Marketer I now question whether the mobile ads we run are being recognized or are lost in the blank stares of the consumer… I don’t have an answer, but the thought runs across my mind.

I’m now looking to find my “Big Chief” Tablet and that 64 Crayola set I had as a kid.

Scott

Thou Shalt (or not) for 2016....

10.  Thou shalt audit media schedules… ensuring any media rebates are spent expeditiously.

9.  Thou shalt refer to “sales” in conversations regarding marketing… e.g.  “Advertising which drives our sales funnel.”

8.  Thou shalt not spend precious marketing budget on items which don’t drive revenue.  

7.  Thou shalt create compelling content which engages clients.

6.  Thou shalt create media spend plans before spending all marketing budgets on creative development… ensuring proper media levels can be achieved to reach thee lofty sales goals.

5.  Thou shalt actually measure sales activity associated with marketing… true sales/cash register ringing, etc.

4.  Thou shalt have open, honest communications with vendors and agencies.

3.  Thou shalt not spam customers with email.

2.  Thou shalt integrate marketing and communication tactics to create a marketing ecosystem.

1.  Thou shall put together a Marketing Strategy and Plan based on revenue goal attainment, measure and communicate results. 

Scott

2016 Predictions -- the Swami Speaks

1. TV costs will increase 20-25%  As it’s a political year, inventory will start getting tighter during the year.  In addition, the Olympics hit in the summer and that always plays havoc with inventory.  HINT:  lock in your TV inventory now, to avoid the high prices political ads will cause once the candidate pool becomes clearer. 
2. Agency rates will increase. 4-6%  This isn’t really anything new.. they always increase.  But as agency holding company’s are having a difficult time getting toppling growth, they’ll need to pressure top line growth.  Digital ad cost will also increase during the year due to the before-mentioned.
3. Recruitment of solid employees will be challenging.  News this past week shows unemployment is at the lowest rate in years.  The market is still extremely tight and company’s will find it difficult to recruit.
4. Company’s will look to drive more products to lower cost channels… ecommerce, inside sales, etc.  Driving every dollar of revenue will continue to be a focus.
5. Metrics will be pushed even further… All of the investment in Marketing Automation needs to pay off.  This will be the year the investment really starts to pay off.  If it doesn’t drive revenue it’s going to be scrutinized big time.
6. Authenticity will be a key focus.  Politics always shows the worse in people, so customers will be looking for company’s that are truly authentic in the sea of negativity… don’t get caught on the bad side of this situation.
7. PR will suffer.  Politics will make it difficult to get mass messages out into the marketplace.
8. Customer Service will be a differentiator… now more than ever.  
9. Marketing Operations will become a more important function within Marketing.  Keeping control of the marketing train will make this function that much more critical.
10. Budgets for the year will increase, albeit moderately.  Consumer spending seems to be on solid footing and company’s will want to capitalize.  But be aware as we head into the second half of the year… a recession might be looming. And if businesses get even a whiff of this, budgets will tighten and tighten quick.

Of course 50% of these will be wrong, but what the hell.

Scott

Trump -- A Marketing Genius?

I don’t care for politics.  And with all of the incredible negativity during this political season I care for it even less.  But the marketing associated with this years candidates is fascinating  Specifically, Donald Trump.  Why is Trump so successful at not just getting support but increasing it even amongst increasing pressure from opponents, media, etc.?  He’s a masterful Marketer.  Yep I said it.  He might have insulted every religion, race, country, sex… ok everybody, but he keeps rolling.

It’s the basics of today’s marketing strategy.

1. Content — he’s provocative.  I’m not sure he knows what’s going to come out of his mouth next.  And honestly, I’m shocked at much of it, but it keeps me listening to him…even though I don’t care for him.  People are drawn to great, ongoing, new content and Trump has plenty of it. 
2. Authenticity — he is nothing but “authentic”… he connects with a certain segment of the population and you only do that if you are authentic.  He is raw in his comments and it seems their are many who connect to those comments.
3. Timing — have you noticed that Trump seems to come out with a new point of contention just when the previous one is starting to die off?  I say it’s not a coincidence.  He keeps his content coming in waves.  And that keeps him as the top news story on the networks and other media outlets.
4. Social — the guy is everywhere… the media is on Tweet alert and is always discussing his Twitter activity.  That free promotion must increase his followers allowing him to reach more folks with his targeted content.
5. And talk about free… I don’t believe I’ve ever seen someone get more free advertising.  Does the guy even run TV spots?  Hell, he doesn’t need too. 

Scott

TV Ratings -- Sometimes a Case of Shooting Yourself in the Foot

AdAge reported on a December 9th, 2015 article that TV ratings continued to fall… and this time 39 legacy shows are experiencing the issue.  Just 3 are feeling an uptick.

This shouldn’t be a surprise to anyone.  We know live sports events always do better as people would rather experience the action as it happens vs. rebooting TIVO to watch.  The Sunday Night Football ratings prove that as the ratings were up 8.2 in the 18-49 demo up from the last ratings period.

But I’m confounded by a move ABC is making.  Marvels Agents of Shield just ended it’s Fall shows on December 8th.  But the show doesn’t return until March… March, you’ve got to be kidding me.  It’s time slot is being filled by Agent Carter another Marvel property during the vacancy, but March?  It’s 2.5 months from now.   That’s an eternity to have the show off the air.  AND… Agent Carter really doesn’t have a solid track record as a ratings driver.  And hoping that the Shield crowd stays around for Carter is a risk.  Certainly, getting the audience to gravitate to a new show is great, if, they also stay around for the old show.  But that’s a damn big risk.

Now summer is different story, consumers expect the reruns or shows off the air.  But during the prime season to keep a show off for 2.5 months.  Good luck boys.  My gut, ratings will fall on Agents of Shield at least 15%.

I don’t know about you, but I’m so frustrated with the TV networks these days.  Shows are off the air for extended time periods, get switched between different TV properties, can be watched online etc.  It’s no wonder ratings continue to fall.  The disaggregation continues making it easier for consumers to get access to the show, but this continues to hurt aggregation of ratings.

I long for those days of less tech, and schedule simplicity.

Scott

2016 Marketing Budgets -- a Few Tips

It’s baacckkkk… Marketing Budget Planning

Glistening Christmas lights, the smell of cookies in the oven, carolers singing the traditional holiday songs and the task of getting your marketing budgets done.  A few thoughts on budgeting.

1. Inflation — take it into account on production, agency fees, etc.  I usually figure about a 2% y/o/y increase.  Media inflation can be a wild card, but check with your agency on an estimate. 
2. Zero based budgeting — I like it.  It helps me apply the appropriate amount of marketing funding needed to reach the sales goals of each product.  In addition, it gets those nasty conversations you must have with business groups which won’t receive financial support before you get into the new fiscal year.
3. Cut the fat.  It’s the time to look at results and make the hard cuts.  If something isn’t working get rid of it.  Stop wasting precious financial capital.
4. Staffing — get your plan together early.  Do you need to upgrade talent, cut non-productive employees.  If so, ensure you’ve budgeted appropriately.
5. Run Rates — get those campaigns aligned and your budgets as well.  Nothing is worse than the decision to create a campaign, but not have the money to carry it out.
6. Capital — work with finance to understand your capital requirements.  Does this get charged to your budget?  Or is it paid out of a “pool” of funds at the corporate level?  Retiring capital investments sometimes helps the company’s financials.  Taking on a new capital project not only impacts capital finances but also operating expense.  Not everything can get charged to capital… so ensure you have the operating expense planned for as well.
7. International — work with finance to understand the impact currency rates will have on your budget.  If the US dollar can’t buy as many UK pounds, you’ll need to budget more to have the same media impact, etc.
8. Agency negotiations — if you’ll be negotiating a new contract… take a look at my post on contract negotiation.
9. Tracking — setup very detailed tracking of your dollars.  The amount spent of different  media types, how much goes internationally, how much you spend on campaigns, business units, fees, creative, etc.  It helps in understanding profitability of marketing and will help you plan for 2017 budgets.
10. Special initiatives — they will come out of left field, so build some buffer into the budget and understand where it sits.  Finance loves to pick at the “miscellaneous” budget line.

Good luck in the coming year.

Scott