Emerging Markets: Ogilvy & Mather Bank On Video

According to Ogilvy & Mather, digital video is emerging as the fastest-growing form of interactive content distributed and consumed online. They are so bullish about it, they've launched a specialty video practice that will be led by Robert John Davis, a veteran of Rainbow Media and MTV Networks.

What makes it different than their full-service offerings? The agency is hoping Ogilvy's Advanced Video Practice will take engagement beyond the "viral" view, which is largely defined as number of views or impressions. Specifically, they are looking to track measurable engagements that place viewers directly into the sales funnel. In other words, outcomes.

"We created a unique offering at a time when even the major online video sites had not yet started thinking about how to maximize the value of their own content for marketers," said John Seifert, CEO of Ogilvy & Mather North America. "Our results with clients using the Ogilvy Advanced Video practice are impressive and we are now making it a distinct practice area to reflect the changes and opportunities in our business."

The practice focuses on several key aspects of online video: the creation of strategic content, video search engine optimization (VSEO), the production/distribution of video across multiple digital platforms, and measurement. None of that is exceptionally special, but it does demonstrate one of the first formalized approaches to move away from defining impressions and activity as "influence" and toward measurements that produce outcomes, including sales.

Beyond that, Davis says that the practice is unique in that it will optimize clients' work from the very start before a frame of video is shot rather than attempt to optimize content after it has been created. While Davis and company believe this is a completely new approach to content creation, they are really borrowing the most common model employed by some publishers who determine "interest" before seeking stories.

However, they may be one of the few agencies thinking about this approach. And, interestingly enough, they are one of the few thinking about outcomes, especially as they happen online.

Where Ogilvy & Mather is right and where this thinking might lead.

The best part of the practice is clearly moving away from eyeball measures and considering what people are interested in before developing content. The latter is tried and true among publishers (although sometimes I wish publishers wouldn't do it), and will certainly give an uplift to advertising campaigns. The former is a concept relatively few agencies seem to embrace these days.

Where Ogilvy & Mather might do even better is to rethink what medium means online. Digital video is clearly engaging for audiences, even if it is limited by its linear presentation. But marketers need to shift their thinking away from medium all together.

There is no singular medium online, but rather a convergence of all media. Few, if any, agencies have fully realized that, leaving most to continually force content into a medium as opposed to determining the best format for the content and then assigning how various media might support that.

The Internet is everything. It's textual, visual, audible, conversational, portable, mobile, and interactive all at the same time. The best campaign practices that will emerge in the future will be those that recognize the environment, knowing what people are looking for and then delivering it without forcing them into a specific medium.

Still, the real takeaway today is that one of the largest marketing communications companies in the world is growing weary of impression counts and is committing to a new direction. That's great news for anyone tired of people who like to primp followers, viewer counts, and page views.

Making G+uru: Get Certified Now!

You know it and so do I. Google+ represents a windfall for social media unlike any other social network before it. But even better than a windfall for social media, it could be a windfall for you too, my dear friend, because it's all happening right now!

Facebook? Forgetaboutit. Twitter? Grounded. MySpace? Neverheardofit. Quora? Flashinthepan. Google+ represents the promised land whereas all other social networks before it were merely practice lands.

How To Become A Social Network Expert, Overnight.

Just imagine if you could lock in all the juicy blog headlines about Google+ before Brian Clark. Or maybe host the first, er, second online training session before Chris Brogan. Or maybe you could find the holy grail of marketing (a true influence measure) before Brian Solis. Or maybe that is only the tip of the iceberg.

Somebody is going to become an expert. And the only question you need to be asking right now is ... is it going to be you? Can you write the most SEO threaded posts about G+? Can you deliver more technobabble about your feelings regarding the G+ network? Can you draw beautiful graphics that convince people you've learned to read minds using G+? What about a book? A specialized G+ blog? A dedicated presence on a different social network that only talks about G+?

The ideas we will give you are limitless. All you need to do is strike fast, strike first, and strike fancy. Did you get that? Those are three very powerful words.

Fast. First. Fancy.

Write them down. I'll wait while you do and then you can read why our Google+ program will change your life.

How Google+ Could Change Your Life, Forever.

Imagine what would have happened if you purchased land when the New World was discovered. You would own Manhattan — all of it! Imagine what might have happened if you were smart enough to stop in Nevada on your way to California in the 1800s. You would have discovered the Comstock Lode — all of it! Imagine if you were on the ground floor of development with Steve Jobs. You would be Bill Gates — all of it, er, him! Or just imagine what would have happened if you started a blog three months earlier than anyone else. You would be a social media guru!

It's true. Google+ represents the biggest, baddest, and most significant discovery since ... forever. And right now, every social media pro on the planet is jockeying for the lead position. Whomever gets there first — first workshops, first classes, first books, first anything — wins!

They know it. I know it. And now you know it too.

But what they don't know is that we've developed an entire program that will be the biggest spoiler in social media history. Sure, with their imported networks, weak links, and seemingly endless amounts of time, they have the upper hand. But it's all for naught.

They might be very good at what they do, but one thing they don't have — and will never have — is an authentic Google+ certification. That's right. You can earn a Google+ certification in a few short days or perhaps hours if you are an overachiever.

Why is that important? Because all the other other guys that top lists and get the good rankings might be able to claim that they are social media gurus, but this certification will make you a social media G+uru. See the difference? It sends chills down my spine.

We're Absolutely Crazy To Offer You A G+uru Certification, Nuts.

This is your one and only chance to lay the groundwork to become a world-class resource to your customers, colleagues, and company. And, you really, really, really have to do it right now. Our program will catapult you ahead of the curve to be the expert that you deserve to be.

• Learn everything there is to know about Google+.
• Listen to oodles of speculation about what's next.
• Get the skinny on influence algorithms with G+.
• Understand the difference between circles and huddles.
• Frame your certificate to show your ultimate achievement.
• And much, much, much, much more.

In fact, there is so much more — some of it propriety intellectual property (patent pending) — that you will learn 2,397.5 things about Google+ in less than a week ... maybe a few days ... just a couple hours if you are a real go-getter.

That's 2,397.5 things about Google+ that we have learned in the first 250 hours of its launch, along with 158 bonus things that haven't even been introduced yet (but they will, probably, sooner or later). Tempted to enroll? Good! Because my HP Photosmart 8750 is already bustling with activity as we print 10,000 G+uru certificates and the only thing missing is YOUR NAME!

How Much Does It Cost? Much Less Than Its Value, Absolutely.

We are so convinced that the G+uru certification will be so invaluable that we won't even post the price for fear of breaking the Internet as this news gets out. I'm serious. This offer isn't going to go viral — it's going pandemic!

So how much do you think it would be worth if you were on the ground floor as a senior certified G+uru instructor now? Exactly. It's absolutely priceless.

It's so priceless that in lieu of a certification enrollment fee, we're going to offer the first 500 people the opportunity of a lifetime. We will waive the enrollment fee in exchange for just two or three percent of your lifetime income after you become a G+uru.

Right. This program is so hot that we're willing to gamble on you. Do any of the other guys do that? No. Do they put their money where their mouths are? No. Do they throw in a free T-shirt? Only sometimes.

That's right. It's always the same song and dance with them. Pay once, pay first, and regret it all later. This dance is better. Pay later, pay forever, and never look back.

So what say you? Are you in to take over the Web? Good, because before I even published this post, three people signed up. It's not a revolution, it's an insurg+ence.

This post is satire, with nothing ill-tempered meant to any good sports mentioned. However, I do hope this rings as a true cautionary tale for some. Google+ is a tool. It seems like a very good tool too, just don't forget to use the one you were born with before reaching for your wallet.

Communicating Poorly: Politics Sack Confidence

A new study by TNS, which is one of the world's largest research firms, reveals that 87 percent of Americans with $500,000 or more in investable assets are increasingly concerned about the deficit and its potential impact on retirement funds.

Although about 40 percent said they would pay higher taxes to offset changes to Social Security and Medicare, they are even more concerned about the growing deficit. In fact, 40 percent would accept changes to both Social Security and Medicare if it would help reduce the deficit. Their sentiment is shared by a growing number of Americans.

• 43 percent feel the current state of the economy will jeopardize their retirement plans.
• 40 percent plan to reduce the amount of money they spend compared to last year.
• 56 percent are concerned that the U.S. government may default on its debt obligations.
• 60 percent do not think the U.S. government should increase the federal debt ceiling.

Along with increasing concerns about the long-term prospects, investor confidence has dropped 11 points to its lowest level in about a year. Joe Hagan, senior vice president of TNS, speculates that increased stress and discomfort among investors will continue to cause declines in consumer confidence.

In fact, that has already happened. Confidence is lower than in 2009.

Marketers share similar concerns over the economy.

According to the Financial Times, investors are not alone. A recent IPA/BDO Bellwether survey reveals more companies in the United Kingdom — about one-fifth of those surveyed — were trimming advertising budgets. Even those that are not trimming budgets are looking at the remainder of the year with caution.

“Our view is that the economy may have slipped back into a slight contraction in the second quarter," Chris Williamson, chief economist at Markit, told the Financial Times. "This confirms that picture of very little growth in the economy. We expect marketers to remain cautious over the rest of the year.”

The United Kingdom is not alone. Marketers are cutting budgets again. This time it seems the decision has less to do with spending cuts as much as it relates to consumer confidence. While some people are attempting to look at the positive side of budget reductions, the more recent economic shakes have less to do with budgets than marketing executives reacting to a marketplace with lower returns on marketing investments.

While it is often prudent to increase marketing during a recession (because ad rates are cheaper and competitors are spending less), marketers are more concerned this time around because consumers seem frozen. Those who have limited or even disposable income are not spending it, believing they will need it in the face of increased taxes and budget deficits or default (both of which weaken the dollar).

What's the best course of action for the balance of 2011?

While cutting marketing budgets may seem like a viable option, it would be more prudent for most companies to re-evaluate their marketing strategies — focusing on long-term brand and relationship building as opposed to immediate hard returns on investment.

Keith Turco wrote a column for Forbes recently, attempting to shock a few readers away from what he attributes to analysis paralysis. He more or less believes that companies are not committing enough of their marketing budgets because they are too busy trying to make every cent trace back to a sale.

Analysis paralysis is certainly part of the culprit, but it is not the only factor. Market research is finding that more and more people aren't ready to buy because the political climate has remained heavily uncertain. This isn't isolated to any segment of the market, but rather the entire world. In terms of changing confidence, some economists see an end to the debt ceiling debate in Washington as the only chance for a reversal. (Others say it is the continued broken promises to ease the burden of unemployment.)

But even if it doesn't, marketing ought not to care so much. The simple reality is that the economy will eventually climb out of the recent hole it has been forced deeper into and consumer confidence will rise with better leadership. (And if it doesn't climb out, then it hardly matters how anyone plays their cards anyway).

And thus, marketing departments that shift tactics toward long-term strategic models will be able to better position their companies on an economic upswing than those who treat their marketing budgets like yo-yos tied to economic forecasts.

Or, in other words, when economic outlooks improve, any company would be better off with relationships in the wings than those who attempt to restart at the first signs of life with a very different kind of consumer. Changing consumer confidence is psychology.

Increasing Rates: Netflix Actions Speak Louder

The writing was already on the wall, but it wasn't writing that sent the real message. Netflix doesn't want to be in the DVD shopping and shipping business anymore. If you want to hold a movie in your hands, you are better off visiting your local Redbox.

The new price increase reflects its decision. Never mind those sensational headlines that scream 60 percent increases. The new plans are pretty straightforward. People can choose unlimited streaming (no DVDs) for $7.99 a month, unlimited DVDs one at a time (no streaming), for $7.99 a month (Blu-Ray is $2 more), or both services for $15.98 a month (with a broader selection).

If you're nutty, you can have as many as four DVDs out at one time. The price for that service is $34.99 per month.

Some people are complaining, saying that they will dump the DVDs all together and Netflix will lose money. No they won't. As soon as the company can dump DVDs and Blu-Ray, the better. The entire point of the price fix is to force you to make the choice that Netflix has already made. CEO Reed Hastings has said it.

"We are now primarily a streaming video company," Hastings said.

Initially, Netflix investors couldn't be more thrilled (although some started selling as customers pushed back). They had every reason to be thrilled, because unless you cancel the service, there is a plan. And the plan looks pretty great on paper. In fact, there are more changes that Netflix is looking at, including scrubbing the household model customers are used to and moving everything to an individual member basis.

"When our focus was primarily DVD rental, we talked about our opportunity in terms of households, in particular the number of households with broadband access, which is more than 70 million households. Another way to view our potential opportunity is to consider the number of households that subscribe to home entertainment, which includes cable and satellite subscribers, a market estimated at about $68 billion in annual revenue. In either case, we were describing a very big potential market, giving us a lot of room to grow.

More recently, as streaming has become central to our business, we believe there may be an opportunity to change our focus from a household relationship to an individual relationship, since streaming is viewed on personal devices, such as phones, tablets, and laptops, as well as on shared large screen televisions. As we think about this long-term shift from a household to a personal relationship, we are starting to think internally that our opportunity could be viewed as the number of mobile phone subscribers, a group that both invests in electronic content and can afford $7.99 for home entertainment. Needless to say, that is a large opportunity.

The evolution toward individual memberships will take time, and we are still thinking about how to best do it. One option could be to allow an account to add additional concurrent streams (using the analogy of our DVD business, it would be like choosing a higher-priced plan that allows a subscriber to have more DVDs at home). Or it could be that there is a price point that would encourage multiple accounts in one household. In either case, our long-term goal is to evolve the Netflix service so that it feels more natural to have a personal account. We will also be working on broader Facebook integration which we hope will further the notion of personal accounts." — Netflix, July 14, 2011

Every communication counts when choosing a service provider.

Personally, this is one of the fundamental flaws with most media "rental" agreements. The companies in charge are empowered to rescind their contracts, raise rates, and change services any time they want. This extends to not only Netflix services but cable and satellite companies too.

But where Netflix really stands out is in its blatant mission to not only increase its rates today, but tomorrow too. It has been sharing this news with investors for some time; customers not so much. The Investor FAQ says it all. They want to manipulate customers into streaming only and then divide their accounts among individuals inside the household.

More than likely, customers will do it too. Sure, there will be some grumbling, but entertainment addiction is alive and well. Most of us gave up free broadcast for upwards of $100 or even $200 a month services (plus mobile) and we still purchase DVDs or their digital equivalent anyway.

At the moment, Netflix is hoping you won't notice the above graphs and it expects the colorful commentary to die down. Maybe it will. Maybe it won't. Personally, I'm split. But then again, I'm not a Netflix customer.

Don't get me wrong. The communication was rotten. Netflix could have phased it in much like it plans to phase in personal accounts over household accounts, making it so people don't notice so much and "feel more natural." But at the same time, the only recourse Netflix customers have (short of organizing with stated objectives) is to dump the service en masse.

I don't think they will. I think most will do exactly what Netflix wants. Netflix wants to get out of the mailing business, which costs considerably more than its streaming arrangement. So, if you dump mail, you're not really protesting at all — you're doing Netflix a favor. That favor isn't nearly as big as the favor you will do when everybody in your home wants an individual account, but this is clearly the first step to make it happen.

It's a plan that is, very literally, worth billions for a company that suddenly makes people reminisce about Blockbuster. But for communication pros, the real lesson goes back to not mixing your investor and customer messages. Everything is public nowadays.

Looking For Roots: Pepsi Skinny To Go Retro

So what do you do after your latest campaign riles eating disorder groups because of the skinny can? To borrow from an old Coke tagline, take the pause that refreshes and look back to the days when your brand meant something.

Pepsi recently approved a line of retro T-shirts to bring back memorable Diet Pepsi and Ray Charles' ads for "You Got the Right One Baby, Uh-Huh!" The campaign was launched in the early 1990s and included 11 commercials over the span of three years.

"Mr. Charles stated that the Diet Pepsi campaign was one of the highlights of his career and that 'You've Got The Right One Baby, Uh-Huh!' was one of his most popular songs," said Valerie Ervin, president of the Ray Charles Foundation.''

The nostalgic appeal of the shirts aligns with the current Pepsi Throwback beverage line. It features Pepsi packaging from the 70s and 80s. So much for change.


The campaign, a conservative move compared to its progressive backfires, returns Pepsi to an arena it plays well in — piggybacking on pop culture. At least it did back then.

While it will receive a boost for the retro branding, it might be too late for retro novelty alone. Earlier this year, Diet Coke unseated Pepsi as the second most popular carbonated soft drink.

In fact, since ushering in its new logo and turning to social media, Pepsi endured a 4.8 percent decrease in sales volume. Total volume has been declining since 2004. Some of the decline is related to soft drinks; the rest is consumer choice.

The Curious Casuality Of One-Off Connections.

Pepsi initially launched its first throwback campaign about three years ago. And each time it toys around with the idea, it sees some gains. And then the retro campaigns end, creating another quandary.

The retro campaigns indirectly undermine the decades that Pepsi spent trying to bolster its youthful underdog appeal as a pop culture promoter (a role it seems to have forgotten for almost a decade). That's not to say Pepsi doesn't have any other good ideas. It does from time to time, including Pepsi Refresh.

But good ideas and brand connections are different things. You can like Pepsi Refresh and never drink it. Simply put, the connection is to the cause, not the beverage. So chalk up that good idea to drinking too much social media Kool-Aid.

You cannot simply connect to the current culture by signing on. Lesson learned: People DO NOT connect to social media. They connect via social media. And once there, they connect with some brands, ideas, and people.

A few years ago, some of the people the public connected with were Michael Jackson, Ray Charles, and Cindy Crawford. And, any brand could leverage such notoriety for a price.


What was the price for Pepsi? For about two decades, Pepsi relied so much on other people that it forgot to make a connection between the consumer and the product. So, it continually benefitted from great short-term sales and dour long-term prospects. Unfortunately, it forgot to leapfrog to the next pop hero.

Since nobody really knows what Pepsi stands for anymore, the only way to regain any footing is to give up on introspection. Ergo, they don't need retro as much as they need Justin Bieber.

Unfortunately for Pepsi, they don't have him. Bieber has been spotted on more than one occasion drinking Coke without the need for an endorsement deal.

Communicating Too Much: Brand Fatigue

Ask most marketers how to measure the effectiveness of a campaign and, inevitably, most will say reach and frequency. Reach is the total number of people the campaign message reaches. Frequency is the number of times people see the message.

They are not alone. Anywhere else, it's much the same. Many public relations firms measure the number of stories that run and potential readership or viewership of the communication. Social media is keen on the number of followers (and number of followers those follower have) and the frequency of shares and retweets. Entire "influence" scoring systems revolve around that number.

But is there a point when too much of a good thing becomes a bad thing?

Andrea Godfrey, assistant professor of marketing in the School of Business Administration at the University of California, Riverside, thinks so. She co-authored “Enough is Enough! The Fine Line in Executing Multichannel Relational Communication.” The study included almost 1,200 people over the course of three years, with most participants being exposed to communication over a three-month period.

What Godfrey and fellow researchers (Kathleen Seiders, an associate professor of marketing at Boston College, and Glenn B. Voss, an associate professor of marketing at Southern Methodist University) found was that multi-channel communication does not always yield the results marketers might anticipate. In fact, over communication can quickly lead to brand fatigue.

Specifically, the researchers used more intrusive methods of marketing — phone calls, emails and mailings — from an auto dealership to determine optimal effects of multi-channel communication. What they found was that people could only tolerate three phone calls, four emails, and ten mailings before suffering from brand fatigue and reacting toward the brand with a negative response.

Interestingly enough, when the researchers increased frequency in one channel, tolerance for more communication dropped among all channels. For example, when the number of phone calls is increased, the tolerance for email decreases. They also found when there is one mail contact, the ideal number of email contacts is approximately five, but the ideal number of email contacts drops to one when the number of the mail contacts is five.

“We probably need to rethink the idea that to have a strong relationship with customers we need to be communicating with them all the time,” said Godfrey.

The researchers attribute the increased tolerance toward direct mail as "junk mail" numbness as well as the general perception that junk mail is less intrusive than more interruptive communication channels. That probably isn't all there is to it. Direct mail generally is better crafted than phone calls and emails.

The quality of the message, suitability of the message, and sustainability of a message all play a role in the effectiveness of communication. Phone calls are generally the most interruptive and least well crafted. Email is somewhere in between.

Although phone calls, emails, and direct mail were the cornerstone of the research, marketers might want to consider the potential impact of other multi-channel communication, especially online. While brands — including individuals who have become quasi-brands in and of themselves — can benefit from having an online presence, too much communication from a single source can backfire.

With the addition of Google+ for example, I noted that more than one person has sworn off adding Chris Brogan, Robert Scoble, and few other active but less prominent voices on other social networks (I'm not one of them, yet). Collectively, you might call it A List fatigue, but there are plenty of louder B-list communicators that are being ignored too.

To help put it all in perspective, remember to take a break and see things from the consumer's point of view. As consumers, we quickly grow tired of television commercials that air with too much frequency during a single program (especially if they accidentally air back to back). We all grow weary of seeing the same automated messages spilling across every network, doubly so if it is shared by multiple people with different headlines (save hefty shares for substance). And, with more direct messaging, you can offer a "sale" only so many times in a week or ask people to "read" a post so many times in a day.