July 31st, 2007

Is the Web Marketing Industry Still Immature?

Search engine marketing (SEM) expert Kevin Lee talks about the immaturity of the SEM industry in his recent ClickZ column post. He reminds us that nearly all of the companies engaging in search marketing are less than 10 years old, and believes that the way agency/client relationships are created and maintained is immature as well.

While Kevin indicated by email that this post was more of a rant, he makes outstanding observations that apply to the state of web marketing as a whole I believe. He points out, for example, that:

“successful brands and successful marketers, be they manufacturers, retailers or catalog merchants, nearly always manage offline marketing by establishing long-term partnerships with their agencies, suppliers, and even media providers. These relationships don’t always work out, of course, but there generally exists a mature understanding that in order for the company to thrive and grow, an investment in success requires both sides of the relationship to work hard to achieve agreed-upon goals and objectives, many of which will not be easy to deliver. Some initiatives take time to bear fruit; others rely on aggregation of experiential data, as well as learning by both organizations.”

Some of the reasons for client dissatisfaction can include unreasonable expectations, a “dating mentality” with too short of a time horizon, and an unwillingness to communicate. Maybe because web marketing can bring such immediate results, company marketers expect their agencies to be able to maximize those results immediately as well.

In hiring employees, companies don’t generally give new hires just one or even a few months to prove themselves – they have usually at least several months unless there’s a clear and obvious mismatch between the company’s needs and the new employee’s abilities. There is a learning curve for both sides to work effectively together. To do any differently is too costly to both parties given the amount invested in the relationship (high costs of employee turnover and poor hirinig is well documented). The situation, costs and benefits are really very similar in an agency relationship.

An example of what one smart SRB client did illustrates a more mature way to approach the web marketing agency/client relationship. When we started with the client four years ago, we had to climb a learning curve in determining what would work for that client. The first few months we missed the benchmarks we had set out to achieve. The client stuck with us. By the fifth or sixth month we had become by far the client’s most cost-effective marketing channel and remained that way for the following years. Had the client given up too soon, it wouldn’t have realized the results that helped it grow substantially during the remainder of the relationship.

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July 27th, 2007

Yahoo Out-Greens Google?

Yahoo has taken on a leadership role on climate change action that looks to be galvanising its rivals into similar action, according to Ethical Corporation, and also gaining public approval. This is exciting especially because Yahoo, as the biggest US internet media company with 500 million monthly users worldwide, is in direct and influential contact with a huge percentage of the general public.

In May, Yahoo introduced Yahoo Green, an online education program offering environmental news, consumer tips and ideas to help consumers become personally and socially active in combating climate change. The introduction, which will ultimately be expanded to international markets, followed Yahoo’s own pledge to become carbon neutral by the end of 2007.

The company is also engaged in other online projects and parterships, including one with Wal-Mart, AC Nielsen and two federal agencies to develop 18seconds.org, a site promoting the use of compact fluorescent light bulbs. Yahoo executives say encouraging personal change is the greatest role Yahoo can play. Yahoo co-founder David Filo says the company wants to make it easy for consumers to act and help them build enduring habits that can truly make a difference.

And now, according to Global Green, which advises Yahoo on its environmental moves, Google and Microsoft are “racing to outdo one another” with environmental measures. Meanwhile even Rupert Murdoch’s News Corp has apparently pledged to make its operations carbon neutral by 2010.

Read more at the Ethical Corporation article on the topic.

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July 27th, 2007

Email Should Seem More Sexy

We’ve provided a variety of web marketing services for our clients over the years and email has most often risen to the top, in terms of results, for the direct response goals of most of our small to mid-size clients. This has continued to be true right through to the present.

That’s why I’ve been confused over why the industry discussion about email on the internet and at trade events the last few years seems overly focused on things like deliverability and rendering. While these are certainly important, other very important subjects have not often been well-addressed, including specific tactics and best practices for getting and keeping customers for the still large majority of recipients who do get their email.

Discussion of best practices and tactics that truly improved email return on investment (ROI), as well as showed how best to integrate email into the overall marketing picture, would leave it looking a lot more sexy I would think!

Al DiGuido, in his ClickZ column, has indicated he was wondering the same things. He apparently doesn’t feel the DMA is adequately addressing these issues, despite its recent acquisition of the Email Experience Council. He is now planning to start an “EROI Council”, which plans to take many of the topics that will most greatly improve email ROI and how it integrates into the big marketing picture.

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July 24th, 2007

Will European Ad Trends Help Green CAFEs in U.S.?

Nope, I’m not talking about Starbucks or other coffee-serving cafes. I’m talking about corporate average fuel economy standards (CAFE).

The Wall Street Journal reports today that as high gasoline prices and climate change weigh more heavily on car buyers’ decisions, Europe’s premium auto makers are tweaking their ads to cast themselves in a greener hue.

This should be no suprise, as made obvious by the increasing importance in the business world, as indicated in earlier blog posts here, of getting a green message across to consumers. WSJ reports that the new emphasis on alternative energy and low carbon-dioxide emissions also reflects the pressure Europe’s premium car brands are under from environmental groups and European Union regulators to tone down their emphasis on power and speed — or at least reconcile those traits with the theme of environmental stewardship.

So why can’t we get that message across to the U.S. auto industry, which constantly lobbies against any increase in CAFE and has much higher CAFE than Japanese and many European auto makers? Should we be looking at how the auto industry advertises its cars so that U.S. auto makers aren’t pushing Hummers and big SUVs, but lower emission vehicles? Can the ad industry make efficiency and sleek design of vehicles like hybrids the cool in car buying?

If you don’t have a subscription to WJS online, but would like to see examples of the ad themes, check out Environmental Leader’s post on the topic at European car makers’ green messages.

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July 20th, 2007

Americans Want More from Business & Seek it Online

Increasingly, Americans, both as customers and as employees, are seeking more from business, according to the 2007 Cone Cause Evolution Survey. They want companies to be socially and environmentally responsible, and this desire is increasingly affecting their purchasing decisions and expectations of their employers.

More than two-thirds of Americans say they consider a company’s business practices when deciding what to buy. And Cone believes that long-term support of social issues has become a major brand differentiator – something SRB Marketing as seen with our mostly small and mid-size clients for years now. That brand differentiator is a big reason many of our clients and their colleagues have been snapped up by Fortune 1000 companies (e.g., Ben & Jerry’s, Cascadian Farms, Stonyfield Farm).

Americans’ expectations of companies are at an all time high — 83 percent say companies have a responsibility to help support causes, and 92 percent acknowledge they have a more positive image of a company that supports a cause they care about.

In many areas, Americans are more likely than ever before to reward companies for their support of social issues. Eighty-seven percent are likely to switch from one brand to another (price and quality being about equal) if the other brand is associated with a good cause – an increase of more than 31 percent (from 66%) since 1993.

American employees’ expectations of companies have also increased, and quite dramatically — 72 percent wish their employers would do more to support a cause or social issue. This has climbed 38 percent (vs. 52%) since Cone’s last survey in 2004.

Advertising and the Internet are the two main ways Americans prefer companies to communicate their social and environmental issues and practices (45% and 41% respectively). Americans are also using technology proactively to learn about and support social and environmental issues and causes. More than one third are searching for information on issues (37%) or are forwarding important messages to family and friends (38%).

“Consumers have always relied on word of mouth recommendations to influence their decision making, and the increase in prominence of viral communications has made this form of idea exchange even easier,” explains Julia Hobbs Kivistik, executive vice president of Cause Branding, Cone, LLC. “When a company communicates its cause activities in relevant, emotionally compelling ways and highlights the related social impacts, consumers will pass along the message to those around them.”

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