The branding renaissance

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When I grew up, my favorite brand was Coca-Cola. I also loved McDonald’s and any cereal brand. The unhealthier sweeter, the better. Over time, I learned that Coke was nothing more than sugared water and McDonald’s peddled really crappy food by sourcing through really terrible methods. Well, and cereal was nothing more than sugar in milk. My love for these brands turned into cynicism. They still created great advertising but it’s hard to enjoy any commercial or online game when you have these videos of tortured chicken in your head.

Branding used to involve big budgets, flashy advertising, a lot of good looking people and promises that were never kept.

This branding era is about to end.

We are about to experience a branding renaissance

Branding doesn’t happen in brainstorming sessions, on TV screens or through false, beautiful worlds anymore.

Branding today entails:

- Focusing more on stakeholder value, less on shareholder value

- Social Currency is more important than immediate profitability

- Innovation more important than messages

- Customer experience is almost everything

- Delivering constant customer value is everything.

Advertising noise will continue to be part of branding. Over time, that noise will just lead to tone deafness and the return will be minimal. Companies that are doing it right will succeed over time. The others will fade away.

The attention dilemma

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There are many terrible DJ’s out there. I know, because I am one of them.

What makes a terrible DJ?

When you start out as a DJ, nobody pays attention to you. You play at times when nobody wants to dance and everybody just wants to drink and socialize.

What do you do?

You push the power button to 150%. You play hits, bang it out. No interludes. No build-ups. No rest. Bang. Bang. Bang.

The result? You tire out the audience, they’re spent by the time the main act starts, and your reputation is ruined forever. Everybody can bang out hits after hits. That wasn’t your job. Your job was to take people on a journey, to get them ready for the main act. The empty dance floor pushed you to a place you didn’t want to go to. But you did.

In the digital marketing world, we all face this dilemma.

Both work.

You can put the pedal to the medal and try to get as much attention as possible. No matter what people say, it works. Over time, the returns diminish and you have to push harder and harder. Louder and louder.

Or you can start your marketing performance, wait for somebody to listen and take this person on a journey. Others might stop and listen. That’s secondary because your goal is to seduce one. And let them spread the word for you.

Unlike DJ’s, there’s nothing wrong with either approach. However, you need to stick with your choice. You can’t transform from a coffee house into a rave club. Or vice versa.

Just look at your brand and ask yourself: Do I want to get as much attention as possible? Or, do I want to give as much attention as possible?

Only you can answer that.

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We all know the lesson President Obama’s campaign taught us in 2008: Social Media can be powerful and a game changer. 4 years have passed and almost everybody learned that lesson by now.

The 2012 primary season is in full swing and Social Media is not the hottest thing in town anymore (still important), but we learned a few more lessons in the last few months:

Behold, the power of earned media.

Gingrich’s campaign has been declared dead numerous times. He had no money to spend on ads, he had no organization and no support. 20 years ago he would have had no chance to make it to South Carolina, In 2012, he won South Carolina by a landslide.

Why?

Because he played earned/owned media platforms masterfully to create even more earned media. In a world filled with 24/7 new channels, Twitter feeds, blogs and other content platforms, the beast needs to be fed constantly. Gingrich did exactly that, coming up with new ideas, new messages, new proposals every day. It clearly shows the diminishing return of paid ads and the increasing power of earned/owned media supported by paid media.

Be agile.

This has been the strength of political advertising for a while: It’s agile. You say something controversial at 5pm, your opponent will exploit it by 6pm. The marketing world is still stuck in old, traditional production cycles and outdated timelines. Communication and conversations don’t start when your first ad launches – it’s ongoing. Brands need to be more agile and leave room in the budget to reply to a crisis, exploit the weakness of a competitor or tap into new consumer insights immediately.

Forget about standard formats

What was the most talked about creative so far in the primaries? Not a 30-second spot, a 728 x 180 banner or a 60-second radio spot. Nope. It was the 27-minute documentary, released by Gingrich’s Super PAC. The old standards just feel, well, old. People want variety: long-form documentaries, YouTube snacks, podcasts. Give them what they want.

Appeal to the heart.

2004 was about fear. 2008 about hope. 2012 will be about anger. The successful candidates in 2004 and 2008 appealed to emotions, not to the brain of the voters. Romney tried to play to the common sense of voters, being the technocrat that will fix what ails the economy. Gingrich tapped into the anger of people, being the angriest man in the room. Guess who’s leading the race today?

Take risks.

As the advertising and media world becomes more fractured, you take a huge risk when you don’t take risks. Tactics that worked in the past, proven ways, ideas by committee are maybe the riskiest paths you can take at this point. There’s a moment in every campaign when you have to take major risks or you’ll drop out quickly just like Tim Pawlenty. Dig deep and understand what your brand stands for. Then take risks and lead with your gut. It worked for Clinton, Bush and Obama. It will work for your brand.


The state of agency-brand relationships

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Under the title “More gain, less strain: Optimizing marketing partner performance and value in a digital world”, the CMO Council published an analysis of how marketers are optimizing marketing partner performance and value in a digital world.

It’s not a pretty picture

  • Just 9% of marketers believe traditional ad agencies are doing a good job of evolving and extending their service capabilities.
  • 58% of marketers are unsatisfied with the current process of measuring their agencies’ advertising effectiveness.
  • 55% of senior marketers do not systematically evaluate creative impact, and 58% are unsatisfied with the evaluation process associated with benchmarking their agencies’ creative advertising effectiveness.
  • Only 36% of marketers are committed to their agency relationships, with 49% saying that they may consolidate or change their global agency rosters.
  • 32% are looking at selective replacement in their agency rosters, 9% see increased turnover of resource, and another 9% are decreasing the use of agencies.

A small bright spot in a dark environment

Marketers are continuing their search for new insights: 48% consider the most important value and gain from outside agencies fresh ideas, analytics and perspectives. 39% are looking for new methodologies and creative approaches.

When reviewing and evaluating agency relationships, the majority of multi-national marketers look at strategic contributions (57%) and business value created (56%).

The frustration is palatable

The survey respondents also ranked the top five causes of pain and friction in their agency relationships: (in order)

  • Lack of an agreed-upon set of analytics and metrics that defines success and failure
  • Limited knowledge and comprehension of the client’s business
  • Lack of value-added strategic thinking
  • Pricing and budgeting issues
  • Integration of marketing plans and services

Do marketers get what they pay for?

As we all know, marketing expenditures are under incredible pressure from CMO’s and procurement.  While marketers complain about lack of knowledge and comprehension of their business, they don’t seem willing to pay agencies to acquire this knowledge.

A lack of knowledge and comprehension will lead to lack of value-added strategic thinking. The agency might be able to give out some creative candy, but no filling, strategic meals.

Being so unprepared to market a client’s business, the chance of success is diminishing and there’s no benefit in succinctly defining failure and success.

Ultimately, resulting in pricing and budgeting issues.

It takes two to tango

Marketers have to understand that agencies are not lazy or disinterested in learning about the client’s business. Structurally, the client-agency relationship is not set-up for such a learning experience.

On the other hand, agencies need to set parameters for success and failure at the pitch. The pitch meeting should be the occasion where both parties set expectations, discuss challenges and solutions. It should be less about fireworks, grandiose creative and big promises. More about business decisions, culture check and partnership processes.

The current pitch meeting with all its confetti is best suited for a fling. As any married couple with a few decades under their belt will tell us, confetti gets annoying after a while. Long-term relationships are built on trust, transparency and authenticity.  No confetti needed.

Leave the bubble.

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We all live in bubbles, no matter where you work and live.

Your department might be a bubble, never really engaging with the other departments and understanding their challenges.

Your company might be a bubble, rolling along nicely, respected by the market, the analysts, and the business community. Until the day you have to declare bankruptcy. Just ask Blockbuster.

You might live in a bubble within your community. Not knowing the neighbors, not interested to improve the overall community, not caring about anything but your own family. Until the day you need help and nobody cares about you.

It’s easy to live in a bubble, quietly getting on with your own life in comfortable semi-isolation.

You need to get off your butt and leave the bubble.

Find ways to have as many professional conversations with anyone outside of your department. Have as many chats about something with anyone. It doesn’t have to be about work, it can be about sports, the last book you read, the latest song you love.

Talk with competitors. Make contacts at conferences and invite them to lunch. Have a chat about the competitive landscape, be open about your problems and concerns. This is not about spying, this is about learning from each other.

Meet your neighbors. I’ve lived in apartment buildings where I never talked to my neighbors. And I regret that. I’m grateful to know people that go to sleep close to my own bed. A brief chat can make the day brighter. Someone to ask for a favor makes life easier. Feeling a sense of community is an important part of the human experience.

Never stop doing this.

People don’t get old by default. People get old when they lose touch with the outside world. They don’t get challenged anymore, they don’t talk to enough people to learn things they didn’t know. They get scared of the world, just experience it through their self-constructed bubble.

Leave the bubble as often as you can. Or, one day, you won’t find the way out.