Why Do Marketers Still Struggle With Decision Making?

By most accounts, CMOs are increasing their organizational spending on social, mobile, and analytics. One recent study places this budgetary increase at 12.2 percent over the next year.

The increase is in addition to social media spending, which already accounts for more than 10 percent of most total marketing budgets. In five years, this same spending will eventually account for about 25 percent of most total marketing budgets. And none of this news should surprise anyone at all, especially with the increased attention that marketers are giving to the growth of online video.

Digital marketing and social media are mainstream even if measurement remains somehow elusive to marketers. 

What should surprise people instead is that marketers readily admit that they don't really know how to measure the outcome of their efforts. In fact, only 15 percent of CMOs say they have successfully proven a quantitative impact associated with their social media efforts. Conversely, 41.5 percent of marketers haven't been able to show any impact from their social media efforts. The mind boggles.

This apparently nagging inability to measure outcomes is a symptom and not the problem. The problem is how many organizations lack a marketing or communication plan and, even more commonly, how many lack good marketing or communication plans. If they did have good plans, measurement wouldn't be a problem as the key has always been to set realistic and measurable goals.

It's almost impossible to measure outcomes that aren't tethered to objectives. 

Likewise, it's almost impossible to not be able to measure outcomes if they are tethered to realistic, measurable, and specific objectives. And ideally, those objectives will be drawn from the organization's mission, vision, and strategic plan.

Why is this important? Because specific business goals — along with considerations like product or service life cycle, market share, consumer base, competition, proximity, resources and self-imposed restraints — lead to very specific marketing and communication goals. Consider just a few of them:

• Introduce new products or services. While awareness is worthwhile, introducing new products and services means more than people knowing something exists. Communication objectives can be grounded in outcomes like market position, brand recognition, and value proposition retention.

• Capture market share. Given market share is a key indicator of competitiveness among competitors and market viability. Subway, for example, focused on market share when it stopped defining its market as sandwich shops and started attacking the quick service market.

• Become an industry leader. Most companies that strive to be industry leaders market the influence of the leaders and knowledge of their industry more than they do their products or services.  Becoming a trusted source increases credibility and results in significant market advantage.

• Improve customer loyalty. Organizations that want to increase customer loyalty invest in marketing that reinforces individual relationships, personalization, and the best possible customer experience. Some include incentives, but only those that reinforce positive customer experience.

• Increase product profitability. Sometimes reining in a marketing plan, pushing loss leaders, or reducing non-productive expenses can mean more to a company than expansion. The same objective can also include add-on items that require no additional marketing and well-timed follow-up sales.

• Increase gross sales or revenue. Increasing sales (units sold) and revenue (money made) can sometimes be likened to a throwaway objective in that sales and revenues are often the natural outcome of every objective listed. So if you include this objective, make it specific — X percent of increase in the marketing budget will generate X percent increase in sales within three or six months.

• Become a good corporate citizen. Responsible corporate citizens that support the communities in which they operate often benefit from increased visibility, credibility, and opportunity. Outreach programs can be especially effective when they lift up communities, creating the most potential customers.

• Foster a strong corporate culture. Whether the objectives is tied to acquiring top talent or is more market oriented in better meeting the needs of the customer, a strong corporate culture pays dividends by positioning the company from its people out. Allocating more to internal communication can help.

• Nurture ideas and innovation. When companies make this their objective, marketing enjoys a pretty clear directive that their content and creative ought to aspire toward the same goals. Apple used to be the best example in marketing innovation but not so much nowadays.

• Increase store or website traffic. If this is the objective, it almost always has to be tied to some residual effect such as lead generation, conversation, or community building. The challenge with the concept is to keep it relevant so the traffic counts don't lose customers for life in the process.

• Shape public opinion. If we remember that the primary objective of any marketing and communication program is to change behavior or public opinion, then it stands to reason our objectives ought to define what change we anticipate. Once launched, measure the change.

Naturally, these objectives (most of which would need to be fine tuned and more specific to work) only scratch the surface. There are dozens and hundreds of organization-specific objectives that could be taken into consideration, including proximity, community culture, competition, etc. (For example, a marketing plan for an Asian restaurant in China Town would look very different from a plan in a suburb without one or a farm town without many dining options.)

In fact, these variables (and marketing's unwillingness to accept they exist) are the primary cause for confusion. Too many marketers are looking for some holy grail of marketing plan and outcome measurement that somehow manages to cast the whole of marketing (and each of its tactics) into a plug and play template. But outside of making a few marketing consultants rich on 10-step books in the short term and shifting marketing budgets to social, they work for relatively few organizations.

So before your organization jumps on social, mobile, and analytics wagon, make sure any budget increases are tied to strategic objectives that can be readily measured. Who knows? You might discover a different communication vehicle for your company, one your competitors would never consider.

Psychology And Neuromarketing Can Be Fallible. So what?

There has been plenty of buzz up about the Reproducibility Project, which aimed to validate about 100 psychology science studies by attempting to reproduce the studies. Marketers should take note.

For those who place their faith in scientific-like testing (and big data), the findings of the Reproducibility Project ought to be astonishing. Two-thirds of the original studies tested proved fallible and even those that could be replicated demonstrated irregular statistical variations. Specifically, the magnitude of the effect tested was frequently half as small as the original finding.

Never place too much faith in any marketing formula. 

Sure, there is plenty to be gained by running A/B tests in an attempt to convert your business thinking from "we think" to "we know." There are many successful examples. But just because the results of testing turn out one way or another doesn't ensure success. A/B testing isn't a sure thing in marketing.

The truth is that we must stop treating single studies as unassailable truths, especially when other variables could be influencing the outcome of any finding, outcome, or assumption. True scientific thinking, after all, comes with a critical mindset rather than a yielding one. And we need to be more critical now than ever before, especially as people attempt to manipulate our thinking daily.

You can find evidence everywhere. Journalists are more likely to write attention-grabbing narratives first and then find examples to fill in the blanks than ever before. Scientists are more likely to build studies based upon biased theories than rely on objective observations. And marketers, whether they admit it or not, generally attempt to validate their work more than they produce better outcomes.

And no, it isn't always intentional. Anyone who has ever gone to an eye doctor only to be prescribed an inferior prescription knows how easy it is for mistakes to happen. No matter how meticulous the doctor or technician might be in the office, you eventually have to try it in the real world.

It recently happened to me. In the office, it seemed monovision — wearing a distance vision contact in one eye and a near vision correction in the other — was a suitable option for my slight presbyopia. In the real world, it didn't work at all. Too much of my interaction with the world relies on intermediate vision for monovision to be effective. The same thing can happen in scientific studies.

There are reasons humans are mostly unpredictable. 

If you truly want to understand psychology and sociology as it applies to marketing, you have to make a real effort to understand humans. First and foremost, you have understand that humans are the only creatures on this planet that form flexible and scalable cooperatives based on abstract concepts.

Yuval Noah Harari, author of the international bestseller Sapiens: A Brief History of Humankind, is especially intuitive on this point. As he explains it, bees and ants can form scalable cooperatives but aren't flexible in their ability to change their social structure. Whereas chimps and dolphins are flexible in how they cooperate, they are only able to do so in relatively small numbers.

The reason, it seems to me, it that humans are also the only creatures on this planet to operate with a dual reality, a perceptional concept studied in depth by Donald Hoffman, professor of cognitive science at the University of California, Irvine. In sum, humans perceive an objective reality (what is true) and a conceptual reality (what we accept as truth) at the same time.

For example, the money in your wallet is a piece of paper. The concept that it has value is a fiction that we have collectively agreed to accept as truth. And, to be clear, it is this dual reality often discussed by Hoffman that provides us our unique ability to form flexible and scalable cooperatives.

Marketing and communication, at their core, only has one purpose: to change behavior. And as such, marketers usually try to change behavior by drawing attention to an objective reality or attempting to elevate (or diminish) a conceptual reality. And what makes this especially interesting is that in the last decade, especially with the advent of social media (and likely to become more prevalent with the rise of augmented and virtual reality), is that marketers spend more time targeting the conceptual reality.

So what? The greater the emphasis on conceptual reality, the greater the unpredictability of testing because humans, throughout history, have proven to be consistently inconsistent. And in knowing this, maybe it is time to treat your approach to the science side of marketing as an exercise in adjustment and not in the collection of unassailable truths that will one day be proven false. Good luck.

Everything Can Scale, Especially Mediocrity.

When marketers talk about automation, they don't always see the danger in it. Maybe it's because select benefits — lead generation, response counts, data tracking — outweigh most shortcomings.  But then when you move the principles of automation to something even more personal, like health care, it begins to feel frightening.

Health care professional Andy De Lao knows it. He warns that what we're scaling in health care isn't efficiency as much at it is mediocrity. Where care used to be extraordinary, he says, systems are making it "extra ordinary." You can even hear it in the vernacular. Terms like lean, defects, efficiency, output, capacity, scale, workflow, and productivity were all borrowed from industrial manufacturing.

Health care isn't alone. Those words creep up into almost everything nowadays — marketing, culinary arts, education. They seem to be everywhere. And sometimes, not every time, mediocrity follows.

Somewhere along the way, scalability becomes a setback. 

The last time I ate something from McDonald's (several years ago), I was keenly aware that it wasn't the restaurant that Ray Kroc built around the original quick service concept of Dick and Mac McDonald. Sure, phrase like quality, service, cleanliness, and value still exist, but with very different meanings than the original model.

Quality is now couched in comparison, the service is slower, the cleanliness sterile, and the concept of value somehow out of whack with the reality of the product. Half of the menu feels overpriced. Half of the menu feels cheap. What's worse is that the executive team can't seem to pinpoint the problem.

The problem isn't one thing that prevents McDonald's from getting its mojo back. It's everything. What we're witnessing almost every day at the chain is nothing less than a brand hemorrhage.

And the culprit? Scalability and mediocrity finally caught up with the clown. The systems that once made it a brilliant brand have crashed as it traded in a little on the phrases that made it famous.

Isn't this the same problem we're seeing with health care, where planning target volumes, designing intake forms, and timing medical consultations overtake the core function of patient care? Isn't this the same issue with education, where process is starting to beat out innovation? Isn't this the same challenge marketers have when attempting to understand the difference between automation and absenteeism in social media and content marketing?

I think Andy De Lao is right. There is some optimal point where art and efficiency can coexist. He applied it to his field of health care, but see it fits almost everywhere. Nothing great can scale forever.

The answer is simple: Automate the mundane, but not the art. 

Geoff Livingston gets it. He recently traded in writing columns for articles on his blog, noting that it helps set it apart from the more common opinion/posturing pieces that make up most blogs. And while that might seem like an odd analogy for health care, education, and culinary arts, it still fits.

There is nothing wrong with automation that schedules when you share articles, includes a stable of authors you really respect, or even makes you more efficient. But when you begin to phone in whatever if you are offering — blog post, patient care, or college class — mediocrity takes hold.

You see, there are some things that a restaurant kiosk or social scheduling or online class cannot replace. While all of them have merit, the real magic still happens with the human connection — spontaneous sparks that lead us light years away from whatever some mediocre outline prescribed.

Content Marketing Is Changing Advertising, Not Killing It

Ten years ago, ClickZ published an article that claimed advertising is dying. It's been a common theme there for the better part of a decade. The most recent claim was made just a few days ago.

ClickZ isn't alone. Fortune recently ran an article that cited the exponential growth of ad blocking and how some companies are trying to find workarounds that mitigate the impact (if you can imagine). Others are focused on specific networks where advertising is its own worst enemy, like Facebook.

These articles are all well and good to make you think, but most of them miss the mark in understanding what makes advertising work. Advertising isn't a medium or reliant on any particular media. Fundamentally, advertising is the art of persuasion and it has been around a very long time.

"Advertising is fundamentally persuasion and persuasion happens to be not a science, but an art." — William "Bill" Bernbach, founder of Doyle Dane Bernbach (DDB).

As such, you can't kill advertising anymore than you can kill communication. All you can do is change its trust for the times — from attention grabbing special effects to emotionally authentic — and alter its distribution model — from mass media broadcast to social, mobile, digital, and environmentally interactive.

But hasn't the field always done that? The Golden Age of Advertising wasn't spurred on by the birth of television and mass media print alone. It was largely the result of the creative department becoming more important than account executives alone, with mass media serving as a spark only because it meant that a great concept had significantly more reach than any other time in history.

Given that digital has expanded the potential reach of mass media, a second Golden Age of Advertising could be pinned on content marketing, social media, and next generation technologies that will put digital at our fingertips almost everywhere. Maybe all advertising needs is to get back to its roots to be relevant and that means getting back to the creation of great concepts.


The M6 razor commercial is an excellent example. After being freed from the constraints of a 30-second television spot or a single page of print, the creative team behind the concept was able to tell a story that can hold the viewer's interest for three minutes while delivering two persuasive messages.

For my purposes, this 3-minute spot includes a third. While it's always easy to think content is king, it's really the great concept that remains sovereign. One unforgettable message has a real impact.

It also touches on what is wrong with turning out terabyte after terabyte of forgettable content. There is no great concept behind the bulk of content marketing and there needs to be if we want to benefit from the art of persuasion — the heart and soul of advertising. Without it, we're winking in the dark.

Are There Too Few Analysts In The Field Of Journalism?

There is one place broadcast news continues to beat out print journalism online and it's about time print-to-digital migrants took notice. People aren't looking for news outlets anymore. They are looking for informed experts — analysts, informants, and influencers — who add commentary and consult to their observations of world events and breaking news.

For many journalists, especially those hanging on to the last thread of objective journalism, the concept sends shivers up their spines. It's something different being a columnist or critic than a hard news journalist — writers who prefer to be seen not for their style but for the masthead they make home.

But that's not what people want. They don't want to find the same news in every paper. They don't want truth in media if that means vanilla reporting. And they certainly don't want forgettable bits of top-down information that can be spun out by anyone no matter how hard print tries to maintain it.

Print-to-digital migrants need people that the public can identify.

Sooner or later, print-to-digital migrants have to realize that their decision (some of them, anyway) to cut costs by letting all their veteran journalists go in favor of young, cheap, and desperate writers was a mistake. They needed to double down and transform those old school journalists into quasi-celebrities, a status once reserved for columnists, investigative reporters, and Gonzo journalists alone.

Except, unlike some of their more biased brethren, they need to usher in an era of impassioned objectivists — journalists who aren't afraid to look at the world the way it is (rather than the way they want it to be) and still turn a phrase that causes you to turn your head or wreck you gut or shake you awake. They need to write so well, in fact, that we want to know them by name and trust them to shape our brains.

By shape, I don't mean the advocacy and affirmation news that broadcast serves up on daily basis. What I mean is striving for stories that leave people so deeply informed about a topic that they can form their own opinions. What I mean is writing articles that aren't afraid to dig deeper into topics so we may transcend the tit-for-tat tactics of sourcing two opposing viewpoints who only talk around the surface of the subject. And what I mean is raising the bar rather than insulting the public's intelligence.

How to make print media relevant again with modern reporting.

Just as news publishers are learning in Pakistan, news organizations are learning all over the world: The "power of the press" shrinks exponentially when the public can buy digital ink by the barrel too. In other words, reach ceases to be a value proposition when companies and campaigns frequently beat out the circulation of most major news organizations. So maybe it's time to change it all together.

• Develop more specialists. Whereas news reporters used to be generalists, the public craves to get their information from specialists. This is one of the reasons some research firms have thrived in recent years — they publish content by passionate analysts who are informed, visible, and objective.

Journalists can easily take a page from their playbook or any number of 'new media' publishers that began delivering better content in some verticals than the dailies did, starting almost a decade ago. These people didn't just report the news and other people's views, they provided real analysis.

• Market semi-public reporters. Of course, content wasn't the only place new media started to crush some dailies. Almost every new media publisher and content provider won on personality too. Instead of providing authoritative reporting from under a masthead, the public was treated to a snapshot of the people behind the words.

Much like broadcast has known for years, the messenger can be just as important to the public as the message. In fact, most of the public will even forgive openly biased reporting as long as they feel like they know the person behind it. Ergo, the reporter IS part of the value proposition nowadays.

• Content needs to be intuitive. Ask most people about the ideal length of web content and most of them will skew short. It isn't really true, but plenty of people make a great case for short. Most folks only want a few graphs that sum up everything, they say.

What they really want is tiered content — short introductions that allow them to discern whether or not it's a topic that interests them enough to dig deeper. In fact, I've met more and more people who tell me they use media outlets like Newsy to scan the content and then turn to The New York Times or The Washington Post for in-depth coverage in an attempt to create a DIY hybrid of content agility.

• Multimedia wins the Internet. Sometimes people want to stream clips and other times they want to scan headlines with pics, but they want so much more from anything they decide to dig into deeper. Just as it is having an impact on content marketing it is true for journalism too.

Different people learn differently so they want their content to be visual (see), auditory (told), kinesthetic (touch), or language based (read/write) as it suits them. So knowing this, it only makes sense that digital journalism needs to be multimodal whenever it makes sense — reinforcing whatever story that happens to interest them with maps, infographics, interactive displays, video clips, animation, or anything that make sense.

Maybe all we need are authentic journalists with dazzling content.

While most newspapers have been busy chasing eyeballs to make themselves look more viable than they are, they should have be reinventing their value proposition instead. Consider the obvious.

What if more print-to-digital migrants hired authentic reporters that people could trust to deliver passionate stories that could help us better understand the world? And, what if they did it in such a way that we could preview the content before immersing ourselves in interactive multimodal content?

While no one can be certain, odds are that this kind of publication wouldn't have to worry too much about circulation. In fact, when you look at how people cobble multiple sites together to get the same effect, they wouldn't have to worry about revenue either. Journalism would become relevant again.

Technology Is Transforming Education Right Before Our Eyes

Education is experiencing a tech revolution, but it's only a single facet of our near future landscape. As much as some standardization is seen as an opportunity to level the educational playing field, technology is simultaneously making education and educators accessible for anyone who wants more.

Some parents, myself included, are becoming keenly aware of the opportunities technology affords our children as it pertains to education. I became especially attentive to it two years ago after discovering that my daughter's reading proficiency wasn't keeping up with her course work.

This summer, thanks in part to a reading program I developed for her, she is reading The Hobbit, which is three to five years above her grade level. Sure, she still struggles with some of the words, but that's the point. I want her to feel challenged.

In fact, since then, her summer education program has expanded beyond reading. Between sites like education.com, skillshare, and code.org, there is no shortage of educational content. It keeps her balanced between free play and other activities like art camps or softball clinics or guitar lessons.

It also keeps her up to speed on core subjects while introducing her to skills that she will be unlikely to learn in school (like coding or graphic design) at her age. And for me, as a university instructor, it provides a sense of how to improve my own classes as well as education in general.

Five opportunities for the next generation in education.

• Standardization will lose out to innovation. Given that an overemphasis in standardized education can lead to stagnation as the bureaucracy that oversees curriculum becomes too slow to adopt new concepts, a next generation solution will help educators get ahead of a subject curve. Best practice lesson plans could eventually populate state or national education centers, with the best of them raising the bar on what the nation considers "standard."

Teachers would be given much more flexibility if administrators received grants and additional funding for best practice lesson plans produced by their schools. The system could also provide incentives for teachers to innovate, giving them a reason to think of their jobs as year round.

• Educators will be rewarded for engaging students. As technology continues to remove proximity from the equation, administrators will discover that their educators are assets to the institutional brand. As it happens, the surge in filling courses with adjunct professors to save money will shift toward attracting top talent that the high school, college, or university can market.

After all, when you can take an online writing course from James Patterson for $90, it makes it much more difficult to justify the $600 course taught by an MFA graduate. As a result, universities will have to get back to the business of bringing in marketable talent — professors who can excite students.

• Liberal arts will evolve into liberal tracks. There continues to be pressure to transform the educational system into something much more vocational. The push to create more vocational schools is mostly attributed to STEM education programs, especially technology, as more people see the field as being future proof in terms of career opportunities.

While this is true, some professors are seeing some slippage in other skill sets that used to be covered as part of a liberal arts education. Specifically, tech savvy students sometimes struggle with public speaking, presentation, psychology, communication, business, and other skills that are associated with liberal arts. New classes (including history and philosophy) will be reintroduced as mandatory electives.

• Employers will reassess how they see candidates. Isolating job candidates based on holding a bachelor's or master's degree (or years of experience) will be supplanted with new measurements. Educational achievement will be balanced to consider an applicant's body of work (such as their programs, applications, campaigns) and ancillary continuing education in addition to their degree.

For example, candidates who have completed emergency management courses offered by FEMA will be recognized as having more educational experience than those who took one or two public disaster communication classes as part of their liberal arts degree. Likewise, a design portfolio or computer program could prove much more predictive in choosing the right candidate.

• Initiative will become a most valued commodity. While initiative will likely never become a class on its own, it will eventually become one of the most sought-after attributes for candidates to demonstrate throughout their educational careers. As such, it needs to be baked into education.

Those students (and, subsequently, candidates) who have a track record for meeting whatever "standards" are set and then go on to do more — sports, extracurricular, leadership, advanced students — will quickly discover that they will have more choices in choosing their educational paths and careers. Where education can stimulate such a trait is in creating a layered approach to education where students can take on additional projects or course material beyond what's required.

My daughter is on two education tracts — one at school and one at home. 

It's easy to become excited by the potential for technology in education, but it isn't technology alone that creates a new landscape. It will take teachers to develop new programs and find suitable methods of application for a variety of audiences. It will take programmers and designers to make the material feel intuitive, and it will take parents to offset everything their children can learn.

For my daughter, her summer program includes math, reading, and writing with science, history, and art on alternating days. In addition to these fundamentals, she also invested a half-hour in guitar and a half-hour in coding before her days ended with softball or baseball practice. She loved every minute.

While some people were taken aback by her enthusiasm for summer homework, she was as passionate about learning as she was for some of the incentives. And that, more than any other measure, reinforced to me that innovation, engagement, diversity, integration, and initiative are what's needed most in education. As for technology, it's potentially the best tool to help us deliver on it.