Entries Tagged 'Marketing Strategy' ↓
March 28th, 2010 — Marketing Strategy, branding
Please note that this is a cross-post with my other blog: 52 Short Stories
Last week, I wrote about the story behind launching my new side project, iL-Logic the webcomic. However, I thought of myself as a writer long before I launched iL-Logic with Paul. I’ve been writing outside of work and school for pleasure or for money since the age of about fourteen. While I’m much more satisfied with my career now than I was upon graduating law school, it’s still a far cry from the artist’s lifestyle that I fantasized about as a teen, and yet, I wonder if I didn’t end up exactly where I needed to be.
As much as any artist will tell you that the work itself is the reward, there’s still a big part of himself (that he’s probably buried) that longs to have his work in front of hundreds of eyeballs. That’s why many aspiring artists end up giving up their craft. They never get there.
I’ll use the launch of iL-Logic as an example. On March 1st, the day the webcomic was launched, it went quasi-viral. Before I could announce it on Facebook or Twitter, or even tell friends about it, someone had come across it and submitted it to social bookmarking site Stumbleupon. On that first day, Stumbleupon accounted for 80% of the site’s traffic, and that first day saw twice as much traffic than my best day on any of my other sites. If you don’t think Paul and I were elated by that day because we were just doing it for the art, you have too high an opinion of us, and probably of all artists. The bottom line is that all artists get off on seeing their work in front of others.
And what’s the best way to get content in front of eyeballs? That’s right, marketing.
With the highly competitive nature of just about every industry, the main differentiator between two options will always be the quality of the content, product, service, etc. The best people to create great content and products are the artists and craftsmen (and the best craftsmen are artists). But even a great product needs attention, and for that, artists must once again rely on marketers.
Marketing is becoming a numbers-based science, and that’s a great step for advertisers. Advertisers are sure to get their money’s worth when they’re paying for performance, rather than conjecture. However, it’s not very appealing to artists, who generally speaking don’t love numbers. Talk to a lot of old school ad men, and I bet that a fair bit of them are nostalgic for the times when clients like John Wanamaker knew that, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” That’s because old school ad men were artists at heart, trapped in the bodies of marketers.
Still, “true” artists have always had a certain disdain for marketing. Whether this stems from a mistaken belief that commercial marketing cheapens the work, or that it equates to “selling out,” or simply because marketing was associated with business, and business was not art. And so, artists have traditionally stuck to making art, and letting someone else sell it for them.
Agents, publishers, galleries, and other entities whose goal is to take the work of artists and sell it have left most artists poor and desolate. Unless an artist becomes a part of the top 1% in his field, he is unlikely to make a middle-class living off his art using the traditional models. This is simply because the entities that have existed to sell artists’ works on their behalf have become so bloated that they absorb all of the revenues of the work.
As an example, a writer who spends a year of his life writing a novel can expect to get a paltry advance of perhaps $5,000 to $10,000 on the book, and then will receive royalties, that if he’s lucky may go as high as 10%. This means the publisher, who is taking the expense of marketing the book keeps 90% of the revenues. The writer’s agent will then keep 10-15% of whatever the writer makes. Despite this model, publishers are going out of business, and writers can’t find anyone to publish their work. The model is broken.
The good news is there are alternatives. There are so many examples of artists doing well for themselves by embracing online marketing techniques: Hazel Dooney, Hugh Macleod, and John T. Unger, JC Hutchins. To name only a few whose stories I’m familiar with. These artists have stepped away from the traditional model and market their own work. They are both artist and marketer. In so doing, they turn the traditional model on its head, and make it so that the person producing the work is actually receiving the majority of the revenues from its sale.
They are not doing anything magical. They are simply taking advantage of the cheap publishing platform that the internet has given them and used marketing techniques, many of which are the same ones I write about on a weekly basis, and have enjoyed the fruits of their own labours.
Doesn’t it only make sense that artists should be the marketers? Who knows the target audience better than the author of a work? Who is best suited to sell it, if not the person creating it? If artists want to thrive, they need to become marketers. Not only will it benefit their work, but their previous work as artists will make them better marketers than the rest – their imagination and craft will set them apart.
If you’re a writer, painter, sculptor, photographer, designer, or any other kind of artist, drop me a line. I’d love to discuss what you’re doing to market your work.
March 22nd, 2010 — Marketing Strategy
The majority of small businesses don’t plan their online presences. They just happen. This kind of presence is inefficient and ineffective. Advertisers duplicate efforts in some places, while others offer no benefit. If we’re agreed that a small business must have an online presence, then the next step is to determine what that presence should look like, and how it should be organized to drive the greatest value. Every part of the advertiser’s presence on the web, should be leading a potential customer further into the conversion funnel.
In a previous post, I talked about the importance of having an online HQ. From this piece, the rest of the presence will be built.
The small business online HQ needs to accomplish the following things:
1. It needs to have the essential information about the business
2. It needs to accurately reflect the business in both design and content
3. It needs to be optimized for conversion, ie. it needs to sell
In my previous post, I said it didn’t matter what your HQ was, whether it was a full-fledged website, or a social media profile. I stand by this, as long as the HQ meets the three criteria above, we’re ready to move on to the next step.
Building a good headquarters is a task in and of itself, but even once that’s been accomplished, this is generally where most small businesses stop. This is most evident when $5,000 are spent on creating a new website, which uses up the entire internet marketing budget for a SMB, and then there is nothing left to promote this site.
An Example of the Failure to Promote the HQ
A colleague of mine uses a classic example, wherein a friend asked him to take a look at the new website he had built for his business. My colleague looked over the website, was suitably impressed, and then asked, “So, how do your customers find it?”
His friend gave him a blank look. “Well, the address is on my business card,” he said.
This actually isn’t as bad as it could be, because at least the business owner in this case was promoting the site to existing customers. Unfortunately, he had invested heavily in creating this site, and had no plan of driving new customers to it. This is where creating the rest of an online presence comes in handy.
The rest of a person’s online presence will come in the form of outposts. These outposts will exist to provide some value to the user, but ultimately to drive traffic back to headquarters, where a potential sale can be closed.
Suggestions for possible outposts:
1. LinkedIn: If you have a decent sized professional network, your LinkedIn profile is a good place to plant seeds. People in your LinkedIn network may not necessarily be your potential customers, but they know your potential customers.
2. AmEx OpenForum: If you’re a small business, a great place to hang out is the American Express Open Forum. The forum is dedicated to topics about small business. Answer questions, and post relevant information, and always make sure to have a link back to headquarters, so that those you help you out can return the favour by sending some leads your way.
3. Forums for your topic: Aside from OpenForum, the internet is full of forums for niche topics. Hanging out in these forums, and offering relevant information and answering questions, all the while having a link back to HQ in your profile is an excellent way of finding exactly the people who are interested in what you’re selling.
4. Facebook: According to some sources, Facebook recently passed Google in terms of total visits. A lot of people are on Facebook, and so creating a Facebook fan page for your business is quickly becoming a requirement. This is intrinsically sharable, and so your fans will find you new fans, and all of them, should be coming back to your website.
5.
MySpace: MySpace is going through some re-inventing, and so its exact place in the internet’s stratosphere is murky, but it is safe to say that you can think of it as a good play if your industry caters to creatives and artists, and it can otherwise be used in a similar way to a Facebook fan page.
6. Flickr: Many businesses can benefit from posting photos in a public area like Flickr, and then pointing traffic back to HQ. For example, Mark Hayward runs a guesthouse on a Caribbean island, and he has had great success using Flickr to drive traffic.
7. YouTube: YouTube is ideal for creating How To videos. These videos create expertise/build reputation, and have the added benefit of being sharable. Just be sure they point back to headquarters.
8. Twitter: Twitter is a great way to connect with new people in your industry by using search functions, and just being active in the community. Don’t carpet bomb your Twitter followers with constant pleas to visit your website (or you won’t have followers for long), but occasionally steering them towards your site especially if something is particular interesting is a good idea.
9. Squidoo: Is a service founded by Marketing rockstar Seth Godin. You can create a “lens” on Squidoo, that will aggregate content from a number of sources. You can then take the audience you’ve found from your lens, and steer them towards your HQ.
10. Guest writing: Writing for someone else’s blog, or writing an article for a website, doesn’t pay well, but if you include links back to your HQ, guest writing, pound for pound, will produce the greatest number of leads. Provided of course you were guest writing for a publisher in your niche.
Dealing with the overwhelm
You could go out and create every single one of these outposts (and others), but the fact of the matter is that most of these outposts are useless unless you have the time to donate to them. You should not be afraid to open & shut down outposts as necessary – you don’t need to maintain all outposts simultaneously. The one piece of your online presence that must always stay active is the HQ. Everything else exists only to drive traffic to the HQ.
Once you’ve created your online presence, you can apportion your time where you see the best results, and in the end, everything should be trickling towards HQ, and you’re on your way to creating plenty of leads.
It’s also worth noting that I didn’t invent this notion of setting up a main place to call home on the web, and then to create satellite pieces of content. Here are two takes on the concept of the HQ vs outposts from two very bright guys.
Darren Rowse on Home bases and outposts
Chris Brogan on a Simple presence framework
March 14th, 2010 — Marketing Strategy
Going viral is the new “thing to do.” Everyone and their dog wants to go viral. I’ve had a hard time figuring out just how long this phrase has been around, but it must be a relatively recent thing, because I seem to recall that not too long ago, “going viral” meant that you needed a trip to the clinic.
Today going viral generally refers to viral marketing, wherein a brand creates something, usually a piece of content, which is then spread by consumers to other consumers, who in turn spread it to more consumers, by means of the internet. Viral marketing is the hip younger sibling of word of mouth marketing, and is usually associated specifically to the web and to content marketing.
The web of today, and even moreso the web of tomorrow, is all about sharing. Facebook and its 400 million users exist to share the details of mundane lives. Going viral is all about breaking free of the mundane and doing something remarkable that people will be happy to pass on to each other and say, “Look how cool/funny/crazy this is!”
While this just a guess, I wouldn’t be surprised if the term viral sprang up right around the same time as YouTube. It used to be, if you had a video worth sharing, you had to get it produced and put on television at significant expense. YouTube allowed anyone to post anything to the web, and to instantly have a potential audience of a hundred million. There are too many YouTube sensations to mention, but the original ones had nothing to do with business and marketing. They were just regular people who did something that others thought was worthy of sharing.
It did not take long for the world of marketing to take note, and now every agency worth its salt is trying to put together a viral marketing campaign for its customers. Producing content is cheap. Sharing is now made easy. Every time content is passed along, that’s essentially free promotion. Why wouldn’t everyone, including SMBs, be doing viral marketing?
The answer to the question of whether you should go viral is easy: Of course.
The answer to the question of how you to go viral is not so easy. There is no magic formula for something to go viral. Brilliant people have created incredible content and then stopped and wondered why it didn’t go viral. Meanwhile, Pants on the Ground has been viewed six million times. There is no set way to make something go viral (except possibly for using kittens in your video). Trying to go viral is kind of like trying to figure out a formula to win the lottery.
The best way to go viral online is to do something that no one has done before. The second person to do something never goes viral. The first stands a chance. The first time you see someone make a basket from the opposite side of the court while sitting down is impressive. The second time is, “been there, done that.”
That rule, however, is nothing new. Long before the web was a great marketing platform, if you did something that no one had done before, you were going to get attention. This used to be called publicity stunts. Now, it’s called viral marketing. Richard Branson was parachuting into press conferences long before Twitter. And someone was launching himself out of a cannon long before YouTube.
Therefore, the best advice I can give to any small business that is trying to go viral is this: Instead of trying to go viral, try to be remarkable. Try to do something no one’s done before. Being remarkable and being the first to do something will have a way of paying off, even if it doesn’t get a million views on YouTube.
February 24th, 2010 — Marketing Strategy
I read a lot of blogs. Too many blogs. I read so many blogs that I’ve cut out most mainstream media in favour of blogs. Because I read so many blogs, I am very ruthless about what other information sources I consume. As a result, until recently, I had a strict “no newsletter” policy. I tried to keep my inbox pristine.
I’m not alone in this kind of thinking. Many people have a hard time digesting e-mail newsletters. it’s one thing to visit someone’s blog daily, it’s another to give them permission to deliver something into your personal inbox. Besides, what’s the point? If you have a blog, why would you need a newsletter? Why can’t you just say everything on your blog?
Before blogs, there were…
Before blogs became one of the biggest forms of publishing on the web, the web was rampant with ezines. Ezines served a similar purpose to blogs in that they were a medium to convey content, but they had more in common with their offline counterparts. They were more editorialized, often organized around set publishing schedules, and were generally collaborative, as opposed to individual, endeavours.
One of the earliest books I read on freelance copywriting as a business advised leveraging the internet to find clients. A website was the main focus of the internet marketing campaign, but more important was the newsletter. The newsletter was a regularly scheduled release of information that would be given away for free to anyone who wanted to sign up for it.
When blogging became all the rage, I decided that blogging combined the best of ezines and newsletters, and could probably replace both media.
I was wrong.
The purpose of a blog
There are any number of reasons to start a blog, but for a small business owner, the primary reasons to start a blog are to create content that will attract visitors to your site, whether through search rankings, or through social channels. Blogs also help to build trust, and they demonstrate a level of expertise.
The purpose of a newsletter
At first, I thought the purpose of a newsletter was identical to that of a blog. That’s where I was wrong.
If you create a newsletter with the same goals as a blog, you can probably have a relatively successful newsletter, based on readership and subscriber base. However, that’s a waste of a newsletter, because a newsletter is first and foremost a prospecting and lead generation tool.
Because of the more personal nature of a newsletter, the reader invites you into his inbox, the relationship between the creator of a newsletter and the creator of a blog is generally much closer. These are the publisher’s biggest fans, his tribe.
Running a blog and a newsletter
The fine line that needs to be walked of course, is for those who have both blogs and newsletters. It is easy for the two to become redundant. After all, to the reader, in the end, what you’re doing is creating free content.
The best way to avoid this is to create each with the knowledge in mind of who the audience is. A blog’s audience is large and wide. Anyone should be able to stop by your blog, read and browse. The content should appeal to all, and should be written for all. Meanwhile, subscribers to your newsletter already know who you are, and they like you enough that they’ve decided to let you into their inboxes. As such, this is a place where you should be writing to a smaller, closer audience, an audience that you should be engaging in a dialogue with. This is your inner circle, and they should be treated with the respected that that commands.
Oftentimes, I point to Chris Brogan as an example of a guy who does a lot well on the web, and I learned about Chris through his blog. I became an avid reader, and devoured everything he wrote. One day, he came straight out on his blog and asked me (okay, everyone) to subscribe to his newsletter if they felt so inclined. He promised different content, and a different feel. And y’know what? Chris delivers in his newsletter. He gives subscribers to his newsletters unique content, addresses them colloquially and even gives them early heads up on his upcoming projects. Sometimes he encourages them to share the word, other times he asks that they keep the news their little secret.
If you want an example of how to run a blog and a newsletter properly, visit Chris’ blog, and then subscribe to his newsletter.
Getting the most out of your newsletter
Now that you’ve decided to create a newsletter, and have an idea of how to differentiate it from your blog, how do you actually pull a benefit from it?
First, and foremost, never forget that your number one goal is to provide valuable content. If your newsletter degenerates into pointless rants, or constant sales pitches, you’ll lose subscribers faster than you sucker in new ones (and yes, if that’s all the content you offer, you are suckering them in).
The next thing to remember about a newsletter is that it is a leads generation tool, as such, there is a certain amount of selling that you should be doing, and that’s okay, because newsletter subscribers, when they subscribe are expecting a certain amount of sales pitch. People don’t necessarily mind being sold to, as long as they know it’s coming, and it’s something they’re interested in. So, in addition to your content, sprinkle in some offers, or news about upcoming projects, or products.
Use your newsletter as a prospecting tool. These are the people most likely to purchase from you, but at the same time, be careful how you position this. Remember, these people have trusted you with their contact information, and trust is easily lost when you oversell.
The true secret to a great newsletter is managing the balance between offering great value, and earning trust, and also prospecting for leads in a way that’s acceptable and unobtrusive.
Do you have a newsletter? Do you have a blog? How do you balance the two?
February 17th, 2010 — Marketing Strategy
“Traditional advertising is dying.”
In my line of work, I hear that line a lot.
I work for the Yellow Pages Group of Canada, a company that is associated with one of the most traditional forms of advertising you can think of. I also happen to work on the online side of the business, specifically in relation to online performance marketing products, such as search engine marketing. In other words, the industry that’s killing traditional advertising.
Traditional advertising refers not only to yellow pages directories, but print newspaper advertising, radio broadcast advertising, and some push it as far as broadcast television advertising.
I have seen all the numbers. I have read all of the reports. Internet advertising is still a growing business. In fact the amount of time consumers spend on the internet is still vastly disproportionate to the amount of money businesses are spending online.
That tells me two things:
- First, that if internet advertising is a growing business, and there is a finite amount of marketing dollars in the market, by definition, other forms of advertising will take a hit.
- Second, there’s still a lot of types of advertising out there that businesses are spending money on. And if they’re spending money on it, it means it’s working to some degree.
One of the things I’ve noticed in the past couple of years of working in the industry is that internet marketers seem to have an endless bag of reports and numbers that they can pull from to justify just about every single argument they can make. The scariest part about these numbers and reports are that most of them are created by groups that have a vested interest in making money online. What else would we expect them to say?
In defense of the fact that traditional advertising is dying, and that web advertising is gaining ground, someone pointed out to me the other day that after decades of advertising during the Super Bowl, Pepsi decided to instead do a Facebook marketing campaign.
Fair. Pepsi was absent from the Super Bowl. But do you know who did advertise during the Super Bowl for the first time ever? Google. Google has also been using print and billboard advertising to market its various apps and its Nexus One phone. They’ve also used billboard advertising to advertise their search engine outside of North America, where they generally tend to have a lower share of the search market.
So, Google, the ultimate symbol of internet advertising does traditional advertising. They must know something, that the other internet marketers don’t…
Yes, traditional advertising will decline, simply because online advertising will continue to grow. However, it will not disappear, and the simple reason is that it’s still effective. Yes, we spend a lot of our time in front of glowing screens, but we also do a lot of other things during our day that aren’t connected to the internet, and until we abandon them to live our lives entirely virtually, there will be a use for traditional advertising.
Let me put this another way. Internet marketers spend their lives on the internet, so they sometimes forget that other people – normal people – have slightly healthier, more balanced lives. People read. People listen to the radio. People watch TV. Believe it or not, people flip through phone books. People drive by billboards on their way to work. People go to sporting events. People live outside of the web.
Traditional advertising is still alive because it’s still effective.
February 10th, 2010 — Marketing Strategy
When was the last time you clicked on a banner ad? What do you think of sites that have huge, garish, blinking ads? Do you find ads distracting to content?
The death of display advertising on the web has been heralded as many times as the death of print advertising, and yet, most of the major websites I visit still have banner ads, and most large companies still devote a portion of their online marketing budget to display advertising. All of this despite the fact that search marketing seems to have become the preferred method of advertising across the web (to say nothing of social media marketing).
Search marketing and other forms of performance-based marketing do indeed seem to be dominating. In fact, in many industries, display advertising did shrink late in the first decate of the 21st century. Despite shrinking display ad revenues, advertising revenue online continues to grow, and it’s largely believed that the biggest driver of growth is search.
Blocking out Display Ads
Whether we’re talking about actual ad blocking software (Full disclosure, I myself use the Firefox extension AdBlock Plus on my home computer), or we’re talking about a general blindness to display advertising, one thing seems certain, display advertising is not as effective as it once was. As the general population becomes more web savvy, fewer people are clicking on those whack-a-mole-style banners.
Furthermore, users have gotten used to the constant bombardment of ads, and in order to cope they have developed an immunity. When you walk by a section of town where every inch of wall space is covered in promotional posters, those posters become a part of the scenery and lose their effectiveness as advertisements.
Bouncing Back
The case against display advertising seemed pretty damning a year ago, but it would appear that things are turning around. Display advertising appears to be bouncing back, and continuing to grow. With growth particularly in industries like the automotive industry, display seems poised to re-establish itself as a mainstay in any marketing mix.
There’s no doubt that the economic conditions of the past two years have hurt display advertising, as advertisers seek only the highest ROI marketing. But with a recovering economy, display is once again becoming an option, and with good reason.
Display Advertising Works Differently than Search
Before the rise of search marketing, display advertising was the only way to drive traffic that would convert to a website. Search, and in particular the more recent advancements led by Google to improve the relevance of search, made conversion to sales the biggest strength of search marketing, and made display look lame in comparison.
However, the strength of display is not in clicks to conversions, but rather in branding and reach. A comScore report from not too long ago demonstrated that despite a lack of clicks, display advertising can have a significant positive impact on:
- visits to the advertiser’s website
- likelihood of conducting a search for the brand or product
- likelihood of purchasing the brand or product online
- likelihood of purchasing the brand or product in physical retail locations
The reason for this is quite simply that the reach of display ads is typically greater than that of search. This means that display advertising is best used to create awareness of the brand or product, and to prompt a user to conduct a search query, or otherwise seek more information. Meanwhile, search is best used when that user is closer to the point of purchase.
In other words, the best results are obtained when display is used in conjunction with search. In marketing circles this is conventional wisdom, but the love affair with search has caused some to lose sight of this. However, both logic and empirical evidence suggest that a multi-pronged marketing approach is the best way to go.
The evolution of marketing is not about forgoing one form of advertising for another. The evolution of marketing is about serving the right advertising to the right audience. Whether it be search, display, banner, or other, it doesn’t matter, as long as it’s relevant to the user. If advertising is relevant, it will be effective.
February 3rd, 2010 — Marketing Strategy
Oftentimes, when I talk to people about internet marketing, if they’re listening, they quickly come to a sudden realization. “It seems like you’re giving away a lot of stuff for free.”
It’s true. The internet has created a culture of free. On the web, craftsmen demonstrate how to perform tasks that they would normally charge for. Accountants and lawyers dole out advice that once upon a time they billed for. Software makers give away their products. Writers publish their writing publicly, without even the modest advances that they would get in print. Artists post their work for all to see, free of charge.
“If you’re giving everything away for free, how do you make any money?” That’s a question that a lot of people have struggled with on the web.
There seems to be two main approaches to dealing with “free.” The first is to reject the notion of free altogether. If you create something of value, you should be compensated for it. While I agree with that argument, notionally, in the long run, it’s doomed to failure. The internet has created this culture of free, and like it or not, it’s going to continue. There will always be a group that’s doing exactly what you’re doing, but for free. That group will get bigger, and if you’re the only guy in the field who’s charging, how good do you think your chances of surviving in the long run are?
The alternative is to embrace “free” and find ways to still make money while doing so.
The Freemium Model
The Freemium model – popularized by Chris Anderson, the founder and editor of Wired magazine – is possibly the most popular business model among web start-ups. The idea is simple. You offer a product or service for free, but you also offer a premium version of that same product or service for a fee. On the web, you find feature charts on any website where you can download an application. The feature chart outlines what features come with the free package, and then shows you the additional features you get when you purchase the basic package. Then more features you get by buying the Plus package. Finally, even more features you get purchasing Gold package.
The freenium model has been shown to work when the right balance is struck between what to offer for free, and what to charge for. If you lock too much up behind a pay wall, then you’ll never get the traffic necessary to start rolling. If you give too much away, all your resources will be devoted to creating free products, and you’ll be bleeding money.
The Other Kind of Free
The alternative is to offer a substantial amount of content for free, but then to offer a different, but related product for sale. Content sites will often do this by selling merchandise. This can also be viewed as the “expert” model, because it often involves creating a reputation for yourself as an expert by giving away advice, and then creating products that you can sell based on the strength of your reputation as an expert.
In order for this free model to work, there are a few key points to recall.
First, recall that “free” is a numbers game. Never will 100% of your website’s visitors (who mainly come for the free stuff) buy your products. Instead, the idea is you reach a wide audience with your free content, and a certain percentage of those will be interned in purchasing from you. The goal is to convert as many visitors into paying customers as possible.
Second, remember that even those that aren’t buying from you, are still valuable. The people who don’t buy, may still lead others to your enterprise. These secondary connections can be more valuable than if the visitor had just purchased from you and gone on his merry way.
Third, despite talking about doing stuff for “free,” recall that what you’re doing is still marketing. You’ll need tight copy that reminds your readers/fans/followers/tribespeople what the benefit is to them of purchasing your product.
Finally, if you’re going to follow this tactic, be sure to make it clear from the outset that you’re going to be selling something. The most important thing you have is the trust relationship between you and your visitors. Part of trust is transparency and honesty. If you have visitors that are used to getting free stuff and you suddenly hit them with heavy-handed sales pitches out of left field, they’ll annoyed, frustrated, and abandon you.
The “Thank You” economy
As far as I know, Gary Vee is the one who coined the term the “Thank You” economy. Gary for years has created and hosted a web TV show, 5 days a week, reviewing wines. He also answers every e-mail he receives, and spends hours every day actively interacting with his hundreds of thousands of twitter followers. He does all this for no charge.
Gary coined the “Thank You Economy” to explain what he gets out of it. Gary accepts that what he’s doing is free, and that the vast majority of the people who watch his show, or read his blog, or take advantage of his wine recommendations will never give him any money. However, there is that portion of his followers, his fans, his tribe, that will thank him for all he’s done, and when he does a paid product, they will thank him by purchasing it.
Gary proved the effectiveness of this method when his first book came out late last year and became a best-seller
(Amazon affiliate link) as soon as it went on the market.
Thank you.
January 21st, 2010 — Marketing Strategy
YouTube’s been around for years, and it’s one of the most popular sites on the internet. Sites like Hulu and Boxee are making American cable companies nervous (in Canada, Hulu’s blocked). Certainly, the move from broadcasting on the tube, to broadcasting over the web is coming, but we have yet to see any groundbreaking made-for-web content. Last week, Rev3 put out a tongue-in-cheek open letter to Conan O’Brien, encouraging him to move his show to the web. While the letter was a joke, is that so far off?]
The big question around broadcasting content on the web, however, is what’s the revenue model? Network television makes its money through advertising – raising the same kind of advertising revenue on the web could prove to be problematic. Cable networks make money through subscription. This could be a possibility, but I think we’ll truly see if this is feasible this year if Hulu begins charging for content.
Where does this leave the advertisers? Advertisers have used 30-second television spots with great success for half a century, but what happens when (not if, when) network television dies? The logical answer is that advertisers will move these dollars to the web. Some marketers are touting video as the next generation of advertising on the web. Some marketers go so far as to imply that video will become the dominant content on the web, replacing text and static images.
This is where I get skeptical.
We have seen a number of success stories of people who have used video for business purposes to great success (the name Gary Vaynerchuk comes to mind, for one). However, a few examples of success doesn’t mean that video is going to replace all content.
4 Reasons Why Video Won’t Replace Text
1. History Tells Us Otherwise
The web’s great value is that it’s a resource in addition to an entertainment source. People go to the web to find information. That’s where there’s value for advertisers, because they can find consumers who are looking for answers. Just as documentaries did not replace books as the way we do research, so too, will videos not become the definitive resource for a person searching for information.
2. People’s attention spans are too short
The web has nurtured an environment of people who have an 8-second attention span. You might think this is an argument in favour of video, but it’s not. How often can a person be hooked by the first 8 seconds of a video? Not often. Video as a medium needs time to develop, and it can’t easily be scanned. Text on the other hand is inherently scannable. I scan tens of thousands of words of text on the internet every day. I do it because scanning text is easy. I can’t scan hundreds of hours of video every day.
3. Look at usage patterns
When does a huge portion of web traffic occur? While people are at work. People will happily read/scan through multiple articles during spare moments at work, but very few people have the kind of job where stopping and watching a full video is acceptable or feasible.
4. The right way to use video hasn’t been discovered yet
The 30-second commercial spot on television worked because of the nature of the medium. People had to watch it while they waited for their regular programming to come back. There is a small trend of companies trying to reproduce this same format on the web. That simply won’t work work on the web, because no one will actively seek out a commercial. In fact, people watching television are actively looking for ways to avoid commercials. What makes these companies think that just because you put them on the web now, people will want to watch them?
A Few of the Right Ways to Use Video
As mentioned earlier, there have been some success stories for using video, and as such, there are some lessons we’ve been able to glean from these about how to use video.
1. Promotional tool. Use video content as yet another avenue to guide people back to your web HQ. This can be accomplished by posting something of interest on YouTube, and pointing people back to the HQ for more info. This is about creating valuable content, not selling.
2. Do something different. A lot of people, especially in the world of blogging, are experimenting with video. Unfortunately, most of them are simply taking the blogposts they would have normally written and reciting them into a webcam. If your video doesn’t add anything, just write it. Video allows you to demonstrate and visualize things in a way text doesn’t. Take advantage of that, or risk creating some of the dullest videos on the web.
3. Add personality. The social web has demonstrated to us all that consumers like it when the brands they buy from have personality. Video allows consumers to see who they’re buying from. If you can create video that allows your customers to feel like they know you better, you’ve succeeded.
4. Create a viral hit. The holy grail of internet marketing is going viral. It costs next to nothing, and all of a sudden everyone and their cat has seen your video and passed it along. The problem with creating a viral hit is that there’s really no way to predict what will go viral. The first viral hit of 2010 has been the American Idol rendition of “Pants on the Ground.” Not sure that was intentional…
Experiment with video and add it to your marketing mix, but make no mistake, it is not a replacement, it is a supplement.
While you’re playing with video, you might also want to check out Get Seen, as recommended by Chris Brogan. I haven’t looked at this yet, but Chris usually gives good recommendations.
Oh, and don’t expect many videos from me in the near future. I know my strengths and my weaknesses, and I know that for the sake of anyone reading this, I should stick to writing.
January 13th, 2010 — Marketing Strategy
In my previous post, I talked about the importance of having an internet presence, but went on to claim that that presence didn’t need to be a website. Now, I want to explore what some of the options for building that presence are, and discuss them a little more deeply.
To be clear, what I’m talking about here is not just a place where you appear on the web. It’s the hub of your internet presence. You may show up in a number of different places on the web, but what I’m going to be talking is the main place where you want all your traffic to be feeding back towards. It’s what Chris Brogan calls a home base. I call it a HQ (headquarters). I’ve also heard it called a hub. Whatever you call it, it’s the place that all your other online presences should be pointing towards.
If you have multiple presences on the web, I highly recommend picking one of them to be your HQ, and putting your best content there, while the purpose of everything else you do should be to drive traffic to the HQ. That being said, let’s look at a few different ways to build your HQ.
1. Build a website
Yes, I did predict that websites are going to begin to fall out of favour among SMBs, but for the moment, they’re probably still the most popular choice for SMBs looking to get online. A good business website is not about having the coolest design on the planet, or having the best flash intro. It’s about being accessible, clear and leading to conversion. You can easily spend twenty thousand dollars on a site that will never make a single sale. That’s why I think that the most important thing about a web design team is not how skilled the graphic designer, but how smart the person who optimizes for conversion is (and if no one’s doing that, then you might as well be throwing away your money).
Design and flash are cool, and can help make a good impression on a new visitor, but unless your site is optimized for conversion, don’t bother.
It’s also worth noting that while the skills necessary to build a mainstream website from scratch are slightly more intricate than when I learned HTML ten years ago, building a professional looking site has never been easier thanks to a variety of do-it-yourself platform based tools. These are often good cost-effective solutions for an early site, and you can always upgrade later. One example, I’ve heard good things about is Squarespace. There are many others.
2. Take advantage of a social media presence
Social media is a great way to connect with people, and can also be used to drive traffic to your HQ, but what about using social media
as your HQ? More and more businesses are setting up
Facebook fan pages for just that reason. Facebook now has 350 million users around the world, so setting up a Facebook fan page and thinking you’ll reach almost everyone isn’t as crazy as it sounds, especially if your target demographic is a Facebook crowd (if you don’t know if your audience is a Facebook crowd, you might want to do some market research before diving into a web HQ).
While Facebook is the biggest, and most common place to set up a HQ for small business, certain niche businesses might find that other social networks can work for them as well. If you’re in the music industry, it might not be a bad idea to take a walk over to MySpace (remember MySpace? That thing was all the rage until Facebook came around). MySpace has done a good job of rebuilding itself as a place for music-lovers to congregate, and you could very well find your customers there.
Similarly, if you offer professional services, you might be able to business on the web directly through your LinkedIn profile. You just need to get creative about it.
Finally, there’s the darling of social media: Twitter. While I don’t think Twitter is the ideal place to set up a HQ (it’s difficult to tell your customers all there is to know about you in 140 characters), a few businesses have had great success with this tactic, such as Kogi BBQ, a moving food truck that tweets its location to its followers and meets them at the appointed time and place.
3. Use directory profile pages
Directory profile pages have come a long way in the past few years. What used to just be some basic contact info, and little more than what was available in a print directory has now evolved into a content-rich experience. Most directories will give you the ability to add images, video, driving directions and much more to your profile page, as well as give you the ability to track the traffic on that page. As a bonus, these directory pages, often have good SEO ranking, so you don’t need to worry about SEOing your own site. (
Disclaimer: I work for the
Yellow Pages Group, the publisher of
YellowPages.ca, the biggest online business directory in Canada).
4. Use Google Local Business Centre
Google Local Business Centre is Google’s big push to get into the local business market. Traditionally, Google’s been great for national advertisers, but has had a hard time attracting smaller, local advertisers into its fold. The Local Business Centre might be the answer that Google’s looking for. Essentially, Google aggregates information from a bunch of different sources and creates listings and pages for every Local Business. If you never do anything about this, Google will still create this page for you, and will populate it with whatever content its search robots find on the the internet that’s related to you.
Admittedly, that’s slightly alarming in some respects, because you don’t have complete control over your internet presence, and for that reason alone, I don’t think I would rely on Google Local as my business HQ. However, being aware of it is a good idea, because it can be a powerful tool, and could potentially deliver a lot of traffic. John Jantsch at Duct Tape Marketing recently posted this article about Google Local, that’s worth a look if you want to know how to get more out of it.
5. Build a Squidoo Lens
Squidoo is a site started by Seth Godin, one of the leading thinkers on internet marketing. That fact alone should make you want to consider it. If, however, you’re not convinced by my endorsement alone, I’ll do my best to describe Squidoo. On Squidoo, you create a “lens.” A lens is a kind of page that captures all sorts of different pieces of content and presents it in a chronological, but otherwise, unorganized fashion. I played around with a Squidoo lens for a little bit, but ended up getting distracted by something shiny. My aborted attempt, however, shouldn’t discourage you from seeing what the site has to offer.
6. Be a Virtual Shopkeep with an Ebay Store
If you sell goods over the internet, setting up an Ebay storefront might be the only HQ that you need. The auction super site provides a trusted mechanism by which you can sell your products without going through the trouble of building your own e-commerce site. It also has built-in traffic generation since people searching for products on Ebay are likely to come across your storefront, or if not, at the very least your products. If your sole purpose in being online is to sell directly to people through the internet, and not have them ever come into your brick & mortar store, there are worse options.
7. Join the Blogosphere
I was talking to a prominent blogger and marketing consultant a couple of weeks ago, and I asked him about his blog. It is a bare bones, standard templated blog, and it’s not attached to any “real” website. As it turns out, this person had had a website built for him, had invested the money in it, but once it was ready, he found that he didn’t like the outcome. It was not adding any value, and it was just burying the one thing people came to him for in the first place: information. So, he scrapped the website, and continued using his blog as his sole internet presence. This tactic seems to work well for professionals in an information industry. it’s easy to communicate the information through a blog, and you don’t need to worry about listing inventory or hosting galleries of your stock. A simple blog with an “About” page and a “Contact” page has worked well for many consultants, designers, writers, artists, and could also work well for lawyers, accountants, and other knowledge workers.
Those are just a few of the various possibilities for buildling your internet HQ. Do you have any to add to the list? Add to the conversation in the comments.
January 6th, 2010 — Marketing Strategy
A few weeks ago, I wrote a post asking whether a small business needs a blog, but I realized while writing it that I had jumped ahead of myself. The question I should have first posed was whether a small business needs a website. The answer to that question is no.
Small businesses don’t necessarily need a website, but they do need a web presence. A web presence is simply a foothold on the web that a business can direct its customers to. It serves the function of providing basic information, whether that be about products and services, hours of operation, or even simply contact information.
Ten years ago, the only way to have this kind of presence on the web was to have a website, and that probably meant learning a bit of HTML and getting yourself a Geocities account. A website was a collection of linked together static web pages. When was the last time you heard someone use the term web page? The term has fallen out of use because a page is only a useful term when it is static. Today’s websites have evolved where they’re no longer a collection of individual pages, but a single interactive platform.
Web site design has come a long way since the days of basic HTML and Geocities. You could still create a site using basic HTML and a free web host, but if you expect that to stand side by side with a professionally designed site, you may be kidding yourself. It’s the equivalent of erecting a lemonade stand next to a Starbucks.
As website design capabilities have evolved, though, a curious thing has happened. Websites have become more than what most small businesses need. Most small business don’t need fully interactive sites with integrated CMS, AJAX capabilities, check-out carts, and user review functionality. More importantly, most small businesses can’t afford all those bells and whistles.
That’s why I predict that after several years of consecutive growth, the percentage of SMBs that have a website will now begin to fall. The reason for this is not that SMBs are going to turn away from the web – that would be a huge mistake – but rather because they now have other options for crafting their web presence without investing in a whole website. So, you’ll actually see the percentage of SMBs with a presence on the web continue to rise, all while you see the percentage with websites falling.
There are three reasons why we will soon start to see this trend towards a web presence that is not a website. The first is because SMBs now have alternatives to websites for creating their web presences. Things such as internet directory profile pages (internet yellow pages, yelp, etc.), Google local business center, Facebook fan pages, other social media profiles, blogging platforms, and many other standardized options offer the ability to present the necessary information without all the bells and whistles that SMBs don’t need for the right price: free or just about. The standardized pages look very similar, and offer similar content, to the websites of a few years ago. The difference is they’ve now been commoditized.
The second reason we’ll see a move away from websites is that the web design industry will actually push SMBs away from websites. Web design for SMBs is a high-touch, low-margin business. Because of the availability of cheaper alternatives, the only way for web design firms to justify charging enough to be profitable is to offer customization. However, customization means that the work isn’t scalable, and if it’s not scalable, it isn’t very profitable. Instead, web design firms will prefer to work with bigger customers, who will have deep enough pockets to pay for a truly customized experience, and remove the need for these firms to worry about scalability. As the web design firms focus on the high end, SMBs will naturally look at other forms of web presence.
The final reason we’ll see a shift away from websites is that the new forms of web presence come with a pre-existing method for generating traffic. One of the biggest issues SMBs have with standalone websites is that they pay good money for them, but then once they’re built they need to spend more money to get people to visit the them. The standardized web presences often come pre-packaged with at least one method to be found. Registering with Google Local Business Centre makes you eligible to appear in Google’s local search results. Creating a Facebook fan page allows you to easily attract word of mouth traffic by spreading word through your Facebook friends. Creating a profile with an internet directory means that anyone using that directory will be able to find you.
In my next post, I’ll look a closer look at some of the options for setting up a SMBs web presence.