The Magic Bullet
There is no “magic bullet” in advertising. Despite reports to the contrary, social media tools are not the exception to this rule. While we’re at it – television, search marketing, radio, outdoor, bus benches, bathroom stall posters, sky writing, giant inflatable guerrillas, and tissue packs don’t qualify either. If you current marketing strategies are not producing results, moving them around to different media will not make a difference.
It’s true that social media and digital content are revolutionary forces that are literally unraveling traditional advertising models. You do need to know about Twitter, Facebook, UStream, WordPress, Typepad, Friendfeed, Flickr, Slideshare, RSS and all the other emerging platforms. But the most important thing to remember is that if your product or service is not remarkable and relevant to a well-defined niche there is no amount of friends, followers, viewers, subscribers or fans that will make up for it.
I realize that the whole “create something remarkable and relevant” thing is a little overdone these days so here’s a specific shortcut: Educate Your Customers – otherwise known as information marketing. Information marketing is the act of creating educational content about your product or service and marketing it (giving it away for free) to interested customers. Executed well, it’s probably the closest thing you’ll find to a “Magic Bullet” for marketing. There are numerous advantages to this strategy including:
- The content is inexpensive or free to produce
- You are offering something of value instead of trying to sell
- It gives you an opportunity to provide much more information than you can with traditional ads
- Provides a database-building opportunity
- Can enhance SEO efforts
- Differentiates your business from most competitors
- Takes the focus off price
- Trackable ROI
- Scalable
- Great way to leverage social and other digital platforms
Looking for ways to get started? Start a blog, write an ebook, record an audio presentation, make a handbook or users guide, produce a “how-to” video, create a survey, or publish an interview with an expert in your industry. Don’t do them all, pick one or two and knock it out of the park. Don’t look for shortcuts – create it yourself. Take your time, do your research, make it valuable and stick with it. We’ll talk about what to do with all this stuff in future posts.
Time and Money
Prior to the Internet, money was the throttle that governed an advertiser’s ability to dominate a market. More money meant larger ads in the paper, more ads on TV, and more billboards around town. The goal was to spend as much as you could, sell more stuff, and then reinvest in more advertising. Scarcity kept the system in balance. There were a limited number of providers that could deliver an audience and there were limited dollars to spend.
The Internet gives anyone a broadcasting platform. YouTube videos often generate larger audiences than TV programs. Many blogs routinely attract more readers than the local newspaper. This doesn’t make traditional media obsolete but it does make it possible for businesses that cannot afford traditional media to achieve equal footing by substituting time for money.
In the online world content, not money, is king. It costs nothing to write useful blog posts, create a LinkedIn profile, or to use Twitter – but it does take time. In addition to time it takes patience. Social marketing has more to do with building relationships than selling. The results don’t come right away. You have to provide value for an extended period of time before you can expect a return. The good news is that it will not drain your bank account while you’re waiting.
Demand More Value
So things are slow right now and the economic forecasts show no sign of improvement. You have two choices – read the news all day long and wallow in the negativity or take advantage of the opportunities that volatility creates. No matter how bad things get people will still buy things and will seek out businesses that can provide a great value. At the same time, you need to demand more value from your partners and suppliers as well.
For the foreseeable future the supply of advertising inventory will significantly exceed demand. Consumer spending is down, advertisers are pulling back, and there are more options available than ever before to communicate with customers. For the intelligent marketer this is actually good news because it means you have the opportunity to squeeze more value from every dollar you spend*.
As you begin negotiating your advertising contracts for 2009 here are 5 things you can do to maximize your investments:
1) Demand lower rates.
The simple truth is that supply exceeds demand. The political spending is over and every other category is down. Even online spending forecasts are being revised downward. If your media partners are telling you that rates must go up, it’s time to find other partners.
2) Expect added value.
Most media vendors have plenty of incentives they can offer you in addition to paid inventory. Ask for features, sponsorships, preferred placement, bonus advertising, promotional opportunities, third-party partnerships, links, mentions, category exclusivity etc.
3) Expect preferred placement.
We’ve all heard of under-booked airlines, hotels, and cruise ships offering free upgrades to passengers. As a loyal advertiser you should expect the same type of VIP treatment from your media partners. Ask for larger ads, higher traffic locations, higher-rated programming, better daypart rotation, or prime positioning at no additional charge.
4) Expect more favorable terms.
Avoid restrictive contracts. The market is turbulent and you need to remain agile. Getting locked into anything restricts your ability to rapidly adapt to changes. Make sure that all contracts can be revised or canceled with reasonable notice. Ask for discounts for timely payment i.e. within 15 days, 30 days etc.
5) Expect better service.
If you only hear from your sales reps when it’s time to renew it might be time for a change. A good salesperson should keep you informed about your campaign, offer ideas and research, and care about the success of your business. Let them know what your goals and expectations are and ask for their ideas on how to get there.
Please note – this is NOT about beating up your partners. A strong working relationship with your vendors is essential and will pay dividends. At the same time, it would be irresponsible to not take advantage of the opportunities that a slow market creates for advertisers. If you do not raise your hand and ask for these incentives then they will go to someone else. Ask nicely and be sure to remind your sales reps that any extra value they can provide now will come back to them in the form of increased budgets as your business grows.
Patience
Looking for a sustainable competitive advantage? Try patience. There are no shortcuts to marketing your business. We live in a marketing culture obsessed with finding the right tactic to boost sales instantly; that one big idea that will immediately define a brand and differentiate it from competitors. Here’s a tip: If you really want a strategy that is unique, one that 90% of your competitors will not be able to duplicate, go with patience.
It’s not surprising that advertisers and agencies continue to search for a quick fix. We live in a world of instant gratification and, to be fair, there was a time when it was possible to get an edge on your competitor using clever offers pushed out to the masses with traditional advertising. So what’s changed? Attention. Today’s consumers are not paying attention to mass market advertising like they used to. There are too many ads in too many places and 99% are irrelevant to the audience that is exposed to them. Yet even with all the news of TV ads getting Tivo-ed, print ads being ignored, and direct mail going straight into to the trash you still see streams of hopeful business owners putting hard earned capital on the line to run a 4 week campaign expecting an immediate 2-to-1 return on the investment. Once they realize it’s not going as planned, they pull the ads and start searching for another magic bullet. It’s the marketing equivalent of yo-yo dieting.
Don’t fall into the trap. Once you have decided what and how you want to communicate with your customers, design a plan that allows you to implement that strategy consistently over a significant period of time. Treat your marketing plan as if it were any other operating expense such as rent, utilities etc. This will enable you to maintain a more consistent presence than your competitors and will allow your messaging to gradually seep into the minds of your customers. Realize that only a tiny fraction of the market is ready to buy your product at any given time. Your goal should be to reach customers well in advance of the transaction so that your brand is the first one they think of when the impulse hits.
5 Steps to Flawless Advertising
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Become comfortable with failure.
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Test – Anything and everything that feels right. Start small.
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Measure – Everything.
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Optimize – Based on the data you collect during step #3.
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Repeat.