Rethinking Volkswagen: Five Agencies

There seems to be a bit of buzz about Volkswagen shopping five new agencies to helm a campaign backed by a $220 million media buy that Volkswagen represents. And some even seem to lament that Crispin Porter + Bogusky declined to defend it.

Don't lament. The decision comes after 2008 realized a 14 percent decline in sales from 2007. While some might blame a tough year for automakers, the real unraveling came after one of the biggest branding mistakes ever made.

"Max," the German-accented black Beetle that Crispin chose to represent the brand, clearly missed the mark. And while some people still argue that the Crispin work was rarely ignored, it's easy enough to make the case that Volkswagen would have been lucky had some of the work been ignored. With exception to the "Safety Happens" campaign years ago, Crispin spent years dismantling the sophisticated cool creative delivered by Arnold years ago. Ads so powerful they helped people rediscover Nick Drake as much as the Cabrio.

Any new agency pitching with the hope to return Volkswagen to the second age of great creative might reflect on the work Arnold laid down before Crispin walked couples on the lot of a Volkswagen dealership to prevent her from "birthing children for German engineering." What was missing through most of the campaigns is what Arnold taught us about Volkswagen and Ogilvy & Mather before that — the brand relationship between the drivers and the cars was passionate and the advertising worked best when it celebrated that passion with the sweet spot always found between overtly forced and mainstream.

It was also the concept we carried forward with The Idea Factory in Las Vegas when Findlay Volkswagen wanted to open against a 20-year plus Volkswagen dealership that had gone so mainstream it employed John Elway as a spokesperson with price points. In contrast, we focused on the passion between the drivers and the cars, giving some personalities like Crispin did, but without the cornball gimmick of a German accent and a company spokesperson.

Instead, we told stories about drivers who became jealous when people admired their "girl," a man confessing he coveted a Beetle owned by the priest he was confessing to, or a car calling its owner to "sneak out" for a ride while his wife was sleeping. Arnold always approved the ads with reimbursement for full production because they married well with the national campaigns.

At the end of four months, Findlay Volkswagen ranked first in the state and fourth in the region. It continued to set new records every quarter until the agency's account executive jumped ship and took the account with him. His intent was to make the dealer more mainstream too, and he overshot with ads featuring singing kids that failed to reach the audience. The dealership has never seen the same success for the same reason the Crispin ads didn't connect, except in the opposite direction.

Volkswagen is anything but mainstream, but the consumers who buy them aren't shock advertising savvy either. They're smart people who appreciate the brand distinction without the price.

Turning Channels: Consumers Choose The Internet

If you're looking for more evidence that social media needs to be part of any communication plan, consider that social media is mainstream for more than 90 percent of all Americans. In fact, according to Forrester Research, four in five Americans use a social media platform at least once a month. More than half gravitate to services like Facebook, Twitter, and MySpace.

The Big Picture, By The Numbers

According to Forrester Research, adults over the age of 34 increased their participation in social networks by more than 60 percent. Older audiences have also adopted social media, with 70 percent of online adults ages 55 and older using social media tools at least once a month (26 percent use social networks and 12 percent create social content). Here are more numbers to reinforce the Forrester survey...

• As reported by USA Today, 250 million people are now members of Facebook, spending 13.9 billion minutes on the social network.

• About 30 million Facebook members already access social networks through mobile devices. ad:tech estimates mobile marketing is expected to grow over $24 billion worldwide in 2013 from $1.8 billion in 2007.

• According to comScore, Twitter users spend 66 percent more dollars on the Internet than non-Twitter users. They invested 300 million minutes on the site in April.

• LinkedIn has more than 365,000 company profiles. More than 12 million small business professionals are members of LinkedIn.

• More than 1 million small businesses and individuals promote their goods and services on MySpace. This is despite its steady decline in usage.

• The fastest-growing segment on the Internet is over 35, representing more purchasing power than any single traditional medium can deliver on its own. Even television is being outpaced by the Internet in terms of time invested, which is why most networks are migrating online.

Digital Media, By The Numbers

According to comScore, 158 million U.S. Internet users watched online video during this month, making it the largest viewing audience to date. More than 21.4 billion videos were viewed.

• 81 percent of the total U.S. Internet audience viewed online video.

• The average online video viewer watched 500 minutes of video, or 8.3 hours.

• 120.3 million viewers watched 8.9 billion videos on YouTube.com (74.1 videos per viewer).

• 48.2 million viewers watched 518.6 million videos on MySpace.com (10.8 videos per viewer).

What It Means For Businesses

Forrester Research has been a long-time proponent of integrated marketing approaches, conducting several studies that indicate traditional media's broken business model and fragmented audiences have disrupted traditional strategies. But beyond typically measured growth trends — numbers of members and time spent online — there are several key trends companies will have to consider as they integrate social media into the mix. Here are five:

• The average person will only follow or support a finite number of products and companies, making the social media program just as important as the product. People do not want constant updates as much as they want added value and original content.

• While the largest services — Facebook, Twitter, and MySpace — are current darlings, several social networks have sparked and then sputtered as policies change, services change, and companies are bought out. The social media space is constantly changing, making long-term strategy more important than short-term tactics.

• The chances that customers will seek out companies, products, or services on social networks is remarkably slim. Agencies and public relations firms that attempt to bill friends and followers as the ultimate measure are short-selling clients as many people join groups or follow companies and promptly ignore them. Measurement doesn't end with a connection.

• Media-Internet convergence means an increased need to consider mobile marketing. With new portable products coming online in the months ahead from Apple and others attempting to follow them, every company ought to be thinking about digital content not based on singular devices (phones, computers, etc.), but based on scalability and portability.

• Companies that engage people online have already seen an average increase in revenue by 18 percent, while those that did not saw a decline in revenue by 6 percent over the last year. Eventually, companies that ignore social media tools will fade away, much like those that didn't adopt the telephone years and years ago.

Inventing History: Malleable Memories

David DiSalvo, freelance writer and self-described research wonk, nicely summed two studies from the journal of Applied Cognitive Psychology that suggest what we remember may not be reality, especially when presented with evidence that seems to support what did not happen.

Can false memories be adopted?

After participants were asked to perform a computerized multiple choice gambling task, they were prompted to withdraw money from a bank when they answered correctly and deposit money when they answered incorrectly. At the end of the task, researchers told participants that they were caught cheating. Some participants were told that there was video evidence showing that they took money (but were not shown the video) after answering incorrectly while others were shown false video “proving” that they cheated. In a second study, participants were accused of cheating more than one time.

The results of both experiments were surprising. When shown fake evidence, nearly 100 percent falsely confessed, and 67 percent (Experiment 1) and 73 percent (Experiment 2) believed they committed a false act. But even when subjects were told that video evidence existed, nearly 100 percent falsely confessed, and 60 percent (Experiment 1) and 13 percent (Experiment 2) developed false beliefs.

In a similar study, participants conducted the task with a second person and were then told the other person had cheated and asked to sign a witness statement. In the second study, nearly 40 percent of the participants who watched the video complied. Another 10 percent signed when asked a second time. Only 10 percent of those who were only told about the video agreed to sign, and about 5 percent of the control group signed the statement.

How does this apply to communication?

A significant amount of communication happens in real time or near real time. In some instances, participants may debate or disagree about any number of issues and topics that sometimes evolve into a drama. However, not all dramas may be legitimate, even when evidence seems to support them as such.

John Mackey's Aug. 11 opinion in the The Wall Street Journal may qualify as a fitting example. While there was no outrage in his opinion piece that offered alternative ideas to health care reform, the retelling of false inferences combined with content taken out of context as evidence has fueled some odd and fabricated outrage.

Today, there were about 100 stories with continuing coverage about the boycott, with an emphasis on a Facebook group dedicated to boycotting Whole Foods. There are about 30,000 members. (There is also an anti-boycott group growing at a faster pace, if you can believe it.)

By comparisons to other cause-driven efforts I've covered — ranging from the cancellation of Jericho and Veronica Mars to outrage over Motrin or push back on United Airlines, any fire behind any boycott seems overblown no matter how some agenda-driven proponents attempt to fan it.

Still, both Whole Foods and Mackey have exhibited some regret over the piece, with Whole Foods apologizing while clarifying that Mackey's opinions are not the official stance of the company. In a way, they've accepted an erred definition that providing any opinion was ill-advised.

It really wasn't ill-advised. But with the case being made with the thinnest of evidence, it may be remembered as such. Weird.

Of course, if anyone prefers a simpler example, consider how an old friend might share a memory we don't recollect. We may accept their account, even if they made it up. And, we're even more likely to accept it if they have a photo or video that offers any evidence, even if the evidence is only implied or supportive without a direct correlation to the story. Malleable, indeed.

Redefining Publics: Employees First

While some companies consider social media to be the greatest change in how layoffs are handled, a new study, Global Trends in Separation Practices from DBM and the Human Capital Institute (HCI), reinforces that severance packages and internal communication remain the most critical components to survival.

"When employees leave an organization, they don't just become ex-employees," said Robert Gasparini, CEO and Chairman of DBM. "Departing employees become customers, referral sources, competitors, and perhaps even future employees returning to the organization. By well managing employee separation, companies can fortify loyalty and mitigate retention risk among the remaining workforce."

Specifically, the study found that 71 percent of organizations reducing their labor force experienced reduced employee morale and 62 percent reported reduced loyalty among employees. Unfortunately, for too many companies, this news came too late. And, in some cases, even companies that delivered fair-to-superior severance packages missed the mark on effectively communicating their efforts.

Internal Audiences Remain The Most Important Public

While such internal morale damage can be related to any number of factors — the reason behind the decision, severance pay, outplacement support, and continuing benefits — the only opportunity to turn it around begins with internal communication, especially for companies that never communicated what those benefits were or what they meant. Even more important, such communication cannot rely on vehicles alone. It must be personal, and probably led by a face-to-face meeting with management.

Although not related to layoffs, the recent internal communication leaked at Nielsen provides a excellent example. Had managers been briefed about the external communication, hosted small face-to-face gatherings with employees, answered questions, and then left behind a handout that focused on the future of the company, the outcome would have been very different.

Instead, Nielsen sent out a push message to employees despite the fact that most studies indicate only about 15 percent of employees read employee magazines, newsletters, internal blogs, memos, etc. (And, according to Jack Pyle, a fellow with PRSA, one West Coast employer discovered that only four percent of top managers in the company actually read corporate memos.) Worse, of the very few who do read internal memos, they are the most likely to forward the worst ones to the media.

Of course, none of this is intended to disparage employee magazines, newsletters, internal blogs, memos, etc. On the contrary, most internal communication studies simply reveal that it is not employee communication vehicles that are failing as much as the content contained within them.

And that makes us wonder if the question some companies ought to be asking is "how is our company's communication doing these days?" And, more importantly, is it connecting with employees so our customers have the best possible experience?

Teaching Conversations: Richard Becker

Ten years ago, when I asked my longtime friend and mentor Keith Sheldon, ABC, APR, if he had any advice before I taught my first class at the University of Nevada, Las Vegas, he chuckled and suggested I might offer him advice instead. Very funny, I had said, before refusing to accept his non-answer and asking him to reflect a bit more on the open-ended question.

"Never teach the same class twice."

I knew what he meant. After considerable years as a student, most people begin to develop a sense about various teachers, instructors, and speakers. And whereas some present material that is tried, true, and tired, the most engaging education is not all that different than social media. It's situational, adaptive, and conversational.

For all the speaking engagements that include G2E (World Gaming Expo), U.S. Small Business SCORE, Leadership Las Vegas (Las Vegas Chamber of Commerce), International Association of Business Communicators, and Regis University, I recall presenting a few common truisms with the remaining 98 percent of the class dedicated to new and adaptive content. It seems to make a difference for the audience whether they are students, working professionals, or executives, which is particularly more useful for me because I teach with the pretense that I will likely be taught something too.

"The only constant is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be." — Isaac Asimov

While the quote's conceptual construct can be attributed to the Greek philosopher Heraclitus, Asimov was right. While most businesses employ people who seem to be experts on the now with 'strategies" based on Facebook, Twitter, and other popular social networks, they ought to be considering people who are prepared to guide them into the world that will be. Thinking in terms of what might be changes the entire dynamic of the questions to ask.

One of the better examples of this came from my service on the IABC Research Foundation Think Tank when some of my colleagues had proposed researching policies and procedures related to instant messages via Blackberry. I thought the idea of investing one or two years of research into Blackberry communication was pretty funny stuff (even more funny today, as social networks have since changed the entire dynamic). I suggested researching the increasing immediacy of situational communication ought to produce a more beneficial study, instead.

At the same time, the conversation taught me something. Most communicators were not prepared, and I do not believe they are prepared, for where communication will be five years from now, two years from now, or perhaps even six months from now.

Think I'm wrong? If so, don't hesitate to teach me something here or during several upcoming sessions scheduled this fall. Because the way I see it, in addition to Sheldon's truism about great teachers never teaching the same class twice, I believe another to be that good teachers always remain good students.

Nonprofit Engagement — Richard Becker

Nevada Association of Nonprofit Organizations — 5:30 p.m. to 7:30 p.m. Sept. 15

This session will be unique in that, rather than providing a presentation, NANO has asked for it to be developed much more like social media — as a conversation inside the Cafe by Wolfgang Puck at the Springs Preserve. The format will provide an opportunity to demonstrate a long-standing theory at Copywrite, Ink.: social media mirrors real life in how people travel, connect, and interact with each other.

The Nevada Association of Nonprofit Organizations (NANO), which is part of the National Council of Nonprofits, is dedicated to supporting area executive directors and their executive board leadership by providing education, networking, and resources.

UNLV Class Schedule — Richard Becker

Editing and Proofreading Your Work — 9 a.m. to noon, Oct. 17

The half-day session presents a revised presentation that focuses on improving clarity, consistency, and correct usage in personal and business correspondence. It includes essentials such as language, mechanics of style, spelling, and punctuation. It also includes an in-class exercise and several take-home exercises to help students refresh their writing and editing skills.

The revised session provides basics, including definitions that help distinguish proofreading from editing.

Social Media For Communication Strategy — 9 a.m. to 4 p.m., Nov. 6

The full-day class presents a new format and extended session with the latest case studies and applications to create a new understanding of social media as it fits within an organization's communication strategy. While the session begins with a presentation on increasing the use of online technologies to share content, opinion, insight, and experience, the full-day format allows for extended discussion and live demonstration, as it applies to public relations and human resources.

Collectively, social media shapes more opinion than all other media and has changed the communication landscape. (CEUs: .6)

Rivaling Television: The Internet

comScore, Inc. and dunnhumby released a study that may make some local television station executives lose sleep. The study, which delves into the effectiveness of online advertising in building retail sales, reveals that Internet advertising is as effective as television advertising.

One study demonstrated that over the course of 12 weeks, online ad campaigns with an average reach of 40 percent of their target segment successfully grew retail sales of the advertised brands by an average of 9 percent in three months. Television accounted for an 8 percent lift over 12 months.

In fact, according to the study, 80 percent of Internet campaigns showed a significant statistical lift in sales whereas television showed a 36 percent lift in sales. In the study, which included more than 200,000 people and campaigns that featured cereal, cookie mixes, pizza, juice drinks, snack bars, pasta, tea, deodorants, and toothpaste, the Internet seems to have come of age among big brand marketers.

"The study results represent very encouraging news for CPG marketers online and offline because the data confirms the ability of online marketing to drive results offline at the shelf level," said Bill Pearce, senior vice president and chief marketing officer at Del Monte Foods. "These are precisely the types of persuasive studies we are looking for at Del Monte as digital plays an increasing role in our marketing strategy."

Studies such as these, many of which are never released, are driving dozens of companies to explore Internet advertising and social media programs. Just one of a hundred of new examples we're tracking includes Procter & Gamble's Pampers brand, which is experimenting with digital media by creating its own version of a reality show.

The show, A Parent Is Born, will chronicle the birth of parents via a 12-part Web series that focuses on various aspects of the parenting journey, from "Finding Out the Sex" to "My Big, Fat, Beautiful Body." The Webisodes will run on Pampers.com, YouTube and DirecTV On Demand, and TLC will also promote the show. MommyCast, a weekly radio/podcast series, will interview the Barstons on what life is like after son Leo is born.

Gian Fulgoni, comScore chairman and co-founder, will be sharing more about the series of studies at the Digital Age conference on Aug. 27 in Sao Paulo, Brazil. He is scheduled to share in-depth insight into how online advertising really works, presenting the results of research into click-through rates as well as the importance of online advertising in raising brand awareness and ROI.