Category Archives: Rants

Current Marketing Threats & Opportunities

I have been asked by a number of people about the current state of the market and the key competitive threats and opportunities.   There have been many different context put on that question but I wanted to share some of my answers and see if there are any differing thought.  While many of these may seem like big vs. small agency that is not the case.  The opportunities are real for either agency to win this this current economy.

Threat – Fear

CMO’s and other senior marketers are paralyzed with fear and most likely won’t be trying anything new, deploying “big ideas” or switching to new agencies or unproven marketing tactics.  This is normal – they want to save their jobs and the precious resources they have.  However, doing nothing will lead to stagnation and the more aggressive marketer to gain market and mindshare.

Opportunity – Offering smaller success/results driven activities will allow agencies to be active in these companies.  While these projects won’t drive the revenue levels that “big idea” projects does they do allow you to have a favorable view from the clients and as the economy turns they will remember and reward your loyalty and desire to help them in times of need.
Threat – Consumer entrenchment
Times are tough and the purse strings are knotted shut.  Consumers are only buying things they must have and are making harder decisions on what to buy and which to choose.  They are asking “trusted strangers” their opinions and doing more detailed searches for reviews and experiences and not just buying on brand loyalty.

Opportunity – this is the perfect opportunity to leverage tactics that actually sell and connect with people during the buy cycle.  Integrating search and social media and searcher interest modeling we can find them during various phases of the buy cycle.  This helps us catch “anyone” who wants the products but more focused on those actually ready to buy.

Threat – Demand for Performance Improvement & Instant Wins
Every client and prospect I have met with tells me that they must sell things now.   It is scary how many agencies hear this and try to offer a big idea instead of helping them sell product now.   We see a lot of inefficiency in work that is being done by large agencies and there must be a refocus to sales while running the parallel big idea and branding programs.

Opportunity – If we can do an assessment and find the “low hanging fruit” for companies we can identify these quick wins where we can move the needle.  Similar to the “fear” opportunity we can get in do something quick and then show how smart and nimble we are to gain more access.

Threat – Google
Google is aggressively working to disintermediate the agency and key relationships.   With the recent layoff of 200 sales and marketing staff this will only increase.  They are showing the inefficiencies of agencies and doing it at higher levels of the organization where the greatest loyalty lives.  Google is leveraging Avinash and interesting presentations to get access to senior managers who can still green light projects or shift ad budgets.   I have seen the power of these very persuasive presentations that has opened doors and opportunities at many companies.

Opportunity – Work more closely with Google as a partner rather then pushing them away.  Leverage the summits that you can do with them to gain more interest and the value of integrating search with other forms of marketing.  Take advantage of the new thinking that comes from executives curiosity about “bounce rates” and the “missed opportunities” you can capture by increasing search and analytics programs.

Threat – Social Media Evangelists  & Popularity

Most of these people are hacks but they are getting attention.  They are getting access now that Digital Strategist’s should be getting.  They wield a powerful message of change and “voice of the consumer” in a time of desperation that is getting the attention of senior marketers.  Like every red hot tactic that came before; marketers will run amok and spend a lot of wasted dollars without really understanding the true business value of these tactics.

I would caution any marketer that hears a presentation o social media with only examples of “How Obama did it” or “How Zappos” is doing it.  Unless they are the owner of those programs ask them what they have done.  Both of these are very powerful success stories but the reality of both cases is they are backed by a solid foundation of service and value.  Would Zappo’s social media be as successful if they did not have a killer product and even better customer service?

Money is shifting from other forms of marketing into social media activities.  The fractured nature of the social media offering of most agencies is a problem. They are hiring the evangelists who really don’t understand corporate dynamics of marketing integration for the business applications of social media.

The other key issues is because of the access and attention they are getting with senior marketers they are starting to gain some power over marketing budgets – while the big agency still has the big relationship they need to be wary of the nimble “insurgents” who are getting time with the CMO and making a case for more integration and tactical services which runs counter to the ideas of most agencies.

Opportunity – All agencies need to be out there evangelizing on the whole ecosystem.  Agencies need bloggers talking about these prates and examples within the agencies.    This will get more attention and really help push us into the evangelist phases.   By getting more discussion time via blogs, conferences and whitepapers we can drive the changes and showcase how smart we really are in integrated digital marketing.
The biggest advantage the large agency has is access.  They have the CMO and marketing team on speed dial and if they can get in with a credible offer they can debunk the ideals of the average Social Media guru.   With social media, like with search, we can get into the organization.  Deploying both of these requires access to both people and teams where we can understand other needs.  We have positioned search as a wedge play where it opens the door for more opportunity.

Threat – Global Sales & Execution

Many companies are looking for sales outside of the US.  A recent interview with HP CMO in B2B Magazine indicated that 69% of their growth is coming from outside the US.  This has been the case for many companies from Amazon to Zurich Financial – much of the revenue is coming from outside the US and significantly more now from emerging markets.
One big problem with traditional and digital agencies is they have significant global footprints they just don’t leverage it well.  Many of the local offices come from acquisitions which have their owner agendas and P&L’s to content with and view integration is a potential drain on their individual performance.  Most agencies don’t have a “central advocate” for global business within their multinational clients.  This really needs to change.  Clients are starting to ask for a more coordinated global approach to strategy but local coordination.  I have seen a number of recent cases where local assignments were lost due to the perceived dysfunction of the parent agency or a simple lack of communication about the opportunity.

Opportunity – If agencies can harness their networks globally and have a seamless hand off I believe they can generate a lot of money not only in the US but also around the world.  Companies want market assessments and want to test opportunities in these markets which the local markets typically don’t have budget to fund this discovery.  We are seeing these projects go to smaller agencies to conduct which opens fore opportunity for the nimble shop to take business from the bigger agencies.
With search marketing we can estimate market opportunity via search demand.  We have done this for various multinational and it has helped them understand the the untapped opportunities.  If the agency can do this simple activity for them it could open the door for other local assignments in various forum of digital services that could be passed on to the local offices increasing the overall agency revenue.

Threat – Digital Migration
This is the elephant in the room. That most large corporations and agencies don’t want to admit.   There are a significant the number of people moving to digital and the companies are not moving as quickly.  According to a recent study 63% of CMO’s are moving significant shares of their budgets to digital marketing.
Corporate marketing programs and their antiquated Websites are not mirroring how people consume information in the digital age.  Yes, TV commercials are still very important especially for new products but they must be complimented by search and social/word of mouth activities.

Opportunity -  The opportunity for large agencies is to understand this migration and start aligning a significant digital collaboration to each of these programs.  If it is integrated at the beginning using agency digital resources you have effectively blocked new players from entering the company.  The “insurgent” agencies are using thee as tactics to enter the company pointing out that the big agencies don’t understand the synergies.
It is critical that the big agency must mandate a coordinated paid search program to align with the TV commercial fighting.  To not capture that uplift in searcher volume is negligence on both the agency and corporate marketer and will guarantee a loss of that additional revenue to a smaller shop or the engine directly.

Other threats?

Disintermediation Increases in Hard Times

One trend I am noticing more and more as the advertising market sours and budgets decrease are vendors and publishers doing end-runs around agencies and key internal evangelists.
CMO’s and senior marketing managers are grasping for improvements in performance and tactics that can help them ink out any additional value from their current marketing budgets.  This desperation has opened the door for more nimble agencies (recently referred to as “insurgents”) and publishers to offer direct deals and tools that can deliver increases in performance and bottom line revenue.

One of the most aggressive user of disintermediation tactics right now is Google.  While they have claimed to be the partner to agencies, which has traditionally, driven the bulk of their business they are starting to be more aggressive in their direct dealings with companies.
Google is heavily promoting their tools for efficiency, performance and increased value and increasingly becoming a more trusted partner for brands.  Here are some of the ways Google is getting into the boardroom.

Avinash Kaushik Road Show – Avinash is a friend and a brilliant, engaging speaker and writes a valuable blog Occam’s Razor.  I think one of the best investments Google has made was to bring in Avinash and send him around to large companies to tout the value of analytics and digital marketing.  He talks about how to get the most out of your campaign by looking at the data and making changes where they have the most impact – powerful stuff in bad times.  Between his reputation and Google’s aggressiveness, he is getting in front of the most senior executives and making them aware of the opportunities in search and digital marketing.   At the same time they understand the power of digital.

More Free Stuff – in a time of decreasing budgets Google is rolling out more and more free stuff.  This free stuff is getting the attention of executives at all levels of the organization.  Some of our clients have resisted changing analytics vendors but as they see the power of Google Analytics and its wonderful price tag of “free” they are moving mountains to try and get it in place.   This has actually helped many agencies and marketers advance agendas for better analytics, multi-variant testing and increased budgets for search marketing.

Recession Marketing & Missed Opportunity – This is brilliant.  Come and in and show the “Missed Opportunity” they are leaving on the table in multiple forms of marketing.  My firm, Global Strategies pioneered the “Missed Opportunity Matrix” detailed usage is described in Search Engine Marketing Inc.

One of the biggest forms of sales pressure now is the “fear” that they are under spending the competition or leaving vast sums of opportunity on the table.  This is the one that is the most frustrating.  Many companies have cut budgets and us in the inside are trying to get more out of what we spend now but publishers are beating up the clients with how much more they should spend and we are caught in the middle of the frenzy.  We want them to spend more to increase brand, market share and actual sales but they are not willing so having Google, Yahoo and other publishers pressure them

Trend and Opportunity Tools – A recent deployment of Google Trends & Ad Planner has gotten the attention of many marketers.  While this data has been available to agencies for a while they are now aggressively shopping it to Marketing Intelligence and Marketing departments for them to use without having to go to the agency.  The trend tools are great for insights into what people are doing.  I personally thank Google for making this data public and exposing it to the MI teams since they are, in many cases, the key drivers of the Marketing mix and the associates spends.

Executive Stalking, GooglePlex Tours and Resort Conferences – Probably the biggest change I am finding is the stalking and precision interaction with key influencers.  Almost daily I am getting emails from mid –level and senior executives who have been approached directly by sales people offering them a better solution if they work directly with them or drop the current agency.  Again, this is not new but the people doing are often subcontractors, vendors and partners of the current AOR agency.

For my next company I want a GooglePlex and the press that goes with it.  Just an invite to the “Plex” makes even the most seasoned marketer giddy like a child on Christmas morning.  There are a number of vertical events where Google brings a host of MI and Marketing Executives to Google, put them up at the Four Seasons in Palo Alto and introduces to all the power of Google at the “Plex” with great speakers and presentations of tools and the raw power of the Google machine.
I am also getting calls from many of my clients that they have been asked to attend various “summits” and events that are fully funded.  These have been around awhile but with most companies having significant bans on travel this is becoming more and more popular.  Once you get them there you are able to “power sell” them and have direct dialogue without the interruption of agency partners.  The additional quality time on the slopes or links in invaluable.  I foresee these types of events growing.

This post was not to bash Google or complain about the tactics since in most cases their aggressiveness is advancing my agendas with large companies.  I do thank them for allowing me to stay neutral and ride the coat tails.  I do however get upset and may start closing some doors the more they try to bypass my AOR or label me as a barrier to the client’s success.

To be more successful I suggest these sales teams work closer with some of their most loyal evangelists and help them move the greater agenda rather than just trying to badger the client to buy more of something that might not be the best activity for them at this time.   By helping clients and agencies maximize the current spend they will ensure the tactic is successful and generates leads/revenue for the client.  Playing a s team rather than burning bridges in a down economy will result in even stronger bridges when the economy improves.