Archive for the ‘Movement’ Category

Meaningful Marketing Start-ups: SaveWave

Tuesday, September 21st, 2010

It’s been a little more than two years since our launch of the Marketing with Meaning platform on this blog, and nearly a year since the publication of my book on the topic. One of the interesting things that has happened since I’ve been trying to drive this new paradigm of marketing is that I have come into contact with a wide range of individuals around the world who also believe in our cause. It’s a delight to log in to my email, Twitter, or blog accounts each day and find a random message of thanks from someone who has just discovered what we’re aiming to do.

As a spokesperson for this next evolution of marketing and a strategy leader at a digital agency, I also have a chance to connect with entrepreneurs who are building businesses based on the shift toward Marketing with Meaning. While there are some people trying to create businesses based on shoving interruptive ads in front of our faces, a handful of start-ups are working to build platforms for marketers to add value through their advertising. So in the next few weeks I plan to feature a few of these businesses here. Unless specifically called out, I have no financial ties to these companies; rather, I believe that their success will serve as a catalyst for the movement that we desperately want to see supplant the old approach–so I want to give them whatever helping hand I can. And in a few weeks I will even be able to share a meaningful marketing platform that we have been working on for more than a year here at Bridge Worldwide!

First Up: SaveWave

SaveWave is a rare example of a start-up that was spawned from a large company–that itself is part of a much larger organization.  The company was recently formed as an offshoot of Upromise, the multi-brand loyalty program that helps people save money for college. Upromise itself is a great meaningful marketing platform that I had a chance to work with when I worked in marketing at P&G.  It has helped people save billions and generates huge results for its brand partners (see my previous post here). Because of its success, Upromise, in turn, was purchased by Sallie Mae a few years ago. In June, some of the key founders of Upromise saw a huge opportunity to take a piece of Upromise’s success model and create something new.  Such “intrapreneurship” is praiseworthy on its own, because it can be so difficult to build something on top of your day job and get the parent company to embrace a concept that is outside its usual business model.

SaveWave was created to channel a very powerful tool: access to product-level purchase data at more than 27,000 retailers in the U.S. Getting access to this UPC and shopper card data and building the trust of retailers comes from years of work by Upromise. Now this access will allow SaveWave to help marketers create other offers and promotions that are based on understanding whether a specific transaction occurred.  This unlocks an incredible amount of potential for meaningful marketing. The first and most obvious use of this system is for mobile/digital couponing, which Upromise has actually been offering since 2008; but this also allows for much more, for example:

  • Brands can partner with retailers to make personalized offers to customers. Instead of one-size-fits-all coupons, you can test various alternatives and vary your offer according to customer type.
  • Marketers can go beyond just offering cents back, and instead could allow customers to earn other “rewards,” such as frequent-flier miles, iTunes songs, or Starbucks cards.  These latter alternatives can be much more meaningful in that they are “real” benefits that you can feel and spend, whereas $.50 savings on a $100 bill at the checkout lane is not registered as a real savings by shoppers. Meanwhile, marketers can purchase these kinds of rewards for less than the actual cost of redeeming a coupon.
  • SaveWave plans to “white label” its tool with one or more APIs. In other words, they want to provide the back-end engine that a thousand other big companies, entrepreneurs, and app-builders can use to create their own meaningful marketing tools.  We’re already assessing the tool for our clients and our own app ideas.

Nothing is easy in the start-up world, of course, even if you have competitive advantages such as SaveWave’s data access and a nice first round of venture capital funding. I think the company’s main challenge will lie in figuring out how to stand out among a very wide swath of competitors. Digital and mobile couponing is a no-brainer and will eventually happen; the result is that everybody is going after the prize.  I think the key to success will be to actually get relationships up and running quickly, using big deals to lead to drive positive momentum.

So if you’re on a big brand or working on a way to make digital coupons and rewards do more for your business or clients, check out SaveWave and contact my friend Brendaen Makechnie over there.  Tell him that Bob sent you.

Let’s Ask Ourselves a Burning Question at Cannes

Tuesday, March 16th, 2010

burning question

A question asked in the right way often points to its own answer.”  —Edward Hodnett

Some of the most important changes in history began when groups of people asked difficult questions of their elders, their rulers, and their textbooks. Questions have sparked democratic revolutions from Boston to Berlin, they have driven scientific paradigm shifts from Darwin to Einstein, and they have triggered social change from San Francisco to Soweto. These “burning questions” compel us to step back from the way we have always lived our lives, help us discover that change is needed, and point us to an answer that suddenly becomes completely obvious—and betters the world. It is time for us marketers and advertisers to ask ourselves a Burning Question that will unleash needed change in the work that we do for our customers, stakeholders, employees, and society as a whole.

It is an ambitious objective, but one that is clearly ready for the first bold action. The historic model of marketing and advertising stands on the brink of failure in many corners. Mass media is increasingly an oxymoron, as our customers shift their precious eyeballs to 500 cable channels and 50 billion YouTube videos. Product and service purchases are screened through the lens of social media, not pricey ad campaigns. And citizens of the world are calling on their governments to protect them from advertisements on their mobile screens and school buses. Simply put, our traditional marketing model is unsustainable.

On Friday, June 25 at the annual Cannes Lions International Advertising Festival in France, Jim Stengel and I will bring together the world’s largest brands and advertising agencies to reveal a Burning Question that will allow us to transform our work and our world. We plan to use this biggest, most-followed gathering of global marketers to spark a revolution—and we hope you will join us.

This revolution will be socialized. As we prepare to spark the revolution in June, we need your help to guide the discussion and plan to offer several ways for everyone to be involved. For starters, we are asking people to visit www.burningquestion.com and share what they believe is the Burning Question that will unlock change in our marketing paradigm. We will share the ideas openly, and Jim and I will draw on your input for our session. In a few weeks we will launch a contest in which we will identify a handful of fellow change agents to join us in Cannes (on our dime). And we will announce more ways to get involved before, during, and after this event. I can promise you that it is something that the Cannes Lions Festival has never seen before—and it will be meaningful and memorable whether you are in France with us or not.

This summer we’re going to set fire to the old assumptions about what marketing is and what it can be. Will you join us?

Consumers Rejecting Targeted Ads

Wednesday, October 21st, 2009

targeted ads unwanted

One of the promises of digital marketing that has kept our industry excited and optimistic for the past 10-plus years has been the opportunity to learn about individual consumers and serve them relevant advertisements. The hypothesis is that more relevant interruptions will be more engaging, incite positive action, and reduce waste. Aside from behavioral targeting, which uses cookies to help websites personalize banner ads for individual site visitors, social-media services such as Facebook have promised to open up further opportunities by reading into what people are posting about themselves. Even cable companies are experimenting with personally addressable TV commercials.

But despite all of the hope and hype, targeted ads have not become the revolution that we digital marketers have longed for. Not only are people ignoring highly targeted ads just as much as they do all other banners, but new research suggests that many consumers are outright rejecting the idea of personalized marketing.

I’m a few weeks late in catching the results of a new survey by professors at the University of Pennsylvania and the University of California, Berkeley in which represents one of the first pieces of research not done by digital marketers (who have an understandable bias). In their telephone survey of 1,000 adults nationwide, they asked: Do you want websites you visit to show you ads, discounts, or news tailored to your interests? Before getting to the results, let me first say that this is an excellent way to word the question. It does not introduce the idea of cookies or other privacy third-rails. If anything, this question format seems to emphasize the positive aspects of advertising and content targeting.

Even as a hardened digital marketer I was surprised at the results: 67% of Americans do not want advertisements that are tailored to their interests. A further 51% reject personalized discounts and 58% don’t even want tailored news. Again, this is without seeding survey respondents with doubt and questions about how their personal information is captured and turned into tailored ads. This is a very, very bad sign for the digital advertising industry and website content creators.

What’s worse, when the researchers started describing how their information was tracked, even more people rejected the idea of personalization. From The New York Times:

“The respondents’ aversion to tailored ads increased once they learned about targeting methods. In addition to the original 66 percent that said tailored ads were ‘not O.K.,’ an additional 7 percent said such ads were not O.K. when they were tracked on the site. An additional 18 percent said it was not O.K. when they were tracked via other Web sites, and an additional 20 percent said it was not O.K. when they were tracked offline.”

Some believe that this data has little impact on the industry; sure, people will always say that they hate advertising, they say. Others add that people will protest ads until they learn that it’s the only way they will get free content. The problem is that the government is getting very close to stepping in and regulating targeted advertising. David Vladeck, the new head of the Bureau of Consumer Protection at the Federal Trade Commission, has promised to look closely at such online ad targeting, and has already publicly called some tactics “Orwellian.”

Here’s the problem for marketers: No one is going to stand up and tell the FTC to back off us. We advertisers as an industry have punished consumers for years with meaningless messages pressed against their eyeballs by the thousands each day. Because we can, we have hit them with ads everywhere from their email inboxes to elevators and gas pumps. Our level of society respect lies with used-car salesmen. Who is going to protest in favor of more advertising, even when we threaten that we’ll take away our free content?

With data like this study, Vladeck and the FTC essentially have a mandate to act against personalized targeting. It gives them impartial proof that the people don’t value personalized offers, and their job is to, well, do what the people want. Lawmakers and the FTC can also recall how the National Do Not Call Registry unanimously sailed through Congress and home phone numbers have been registered by more than 70% of Americans. The Direct Marketing PACs could do nothing to stop that legislation and there is little hope that we can stop this, either.

Look, I’m an executive at a digital marketing agency and I will feel the pain like anyone else in this business if this legislation goes through. But I also realize that you can’t force people to view or accept your advertising. This is why I am so passionate about the concept of Marketing with Meaning. I fundamentally believe that the only thing we can do to survive in this business is to create marketing that people choose to engage with and advertising that adds value to people’s lives.

So, people don’t like and genuinely fear personalized advertising. I take that as a sign that we’ve got move on to something that they do value. That is why I believe in creating content that people choose to view, read, or listen to. That is why I believe the future of digital, and marketing overall, lies much more in creating services and positive social movements. So while my company and I still make a lot of banner ads, we are also driving ourselves and our clients to create more meaningful marketing.

Isn’t it time we as an industry stop trying to fight against public opinion and do everything we can to make the public embrace our brands?