The Digital Advertiser

At a recent GGDMelb (Girl Geek Dinners Melbourne) we casually discussed digital advertising and many around the room were on opposing views regarding what metrics to track in order to serve up contextual advertising. I ineptly attempted to discribe a video I’d seen on YouTube titled, ‘The Break Up’.

The video was created in 2007 by Microsoft for the company’s Digital Advertising Solutions. An ad for advertisers that illustrates where things are moving. The concept of looking at consumers in a new way deserves our attention.

What if we could go beyond counting hits on a page? What if we could think outside the box treating our customers as individuals rather than stereotypes? What if instead of guessing what a consumer wanted to buy we could ask them and deliver a product that fulfils their expectations?

I think the answer comes from a few leading philosophies- these being: the long tail, permission marketing and more intelligent algorithms. Since we’re no longer looking at websites, but platforms –how can we do better than banner ads and one off promotions? Why are we trying to sell things online like they do on TV? They are not the same media- not even close!

A few years ago I attended NextMedia, a conference in Toronto, Canada that was extremely influential with how I arrived at my current frame of mind regarding Digital Advertising. The first lecture was about marketers learning about word of mouth advertising from the Grateful Dead.

In an article by Gareth Rees reviewing a book on this very subject he attests, “The Grateful Dead knew this as far back as 1965, as David Meerman Scott and Brian Helligan reveal in Marketing Lessons from the Grateful Dead: What Every Business Can Learn from the Most Iconic Band in History. According to the authors: “The Dead pioneered a ‘freemium’ business model, allowing concert attendees to record and trade concert tapes, building a powerful word-of-mouth fan network powered by free music.”

By encouraging fans to share bootleg copies of live events the band was able to reach out to an ever growing audience. The fans felt apart of the legacy and held a sense of duty to share their experience. This is why decisions for regulating digital media are so controversial. By restricting what users can and can’t do with copyright protected media (such as music and movies) companies are restricting fans ability to fully envelop themselves in the brand. Fans want to share not because they want to commit an illegal act, but because they want to go beyond the current limited experience. Quite simply, there is too much control and not enough listening.

So where do we go from here? I believe the answer is in personal recommendations, personalised customisation, transmedia and exclusivity. If a brand can cross multiple forms of media there are more places to sell a niche product which is what consumers are looking to buy. There are lots of examples that prove when a band distributes content for free and diversify their offering they earn more in sales. The authors of Wikinomics, describe prosumption as a non-passive consumer who wants to participate in the creation of products and services. Allowing fans to create their own video clip is only the tip of the iceberg.

Modern advertising is about relationships and that takes time to cultivate. It also takes more time for marketing to be able to create more than one newsletter and more than one special offer. The hardest part is letting go of control and providing tools allowing consumers to take on the role of authority. But the benefits of personalization mean that your brand wins more loyal fans because consumers appreciate being part of a conversation rather then disruptive ads. It’s harder and more time consuming and that’s why businesses don’t try harder to do a better job, but that short-sighted thinking will see their demise in the years to come when competitors sneak up from behind with a more authentic selling proposition.

When you switch your thinking from my website to my platform you'll begin to see that it's not as important to currate content as it is to allow users to customise their own experience. The more you allow a user to create their own content stream the more you'll know about them. The more users rate, review and talk to you about your brand the easier it will be to sell to them. That's the fantastic business model that is Threadless. Stop trying to tell consumers what they want and start listening to them.

So how do you get in front of consumers in the first place? Check out Hunch and Get Glue.

Selling Stuff Online

Recently a client came to us and asked how she could sell yoga DVDs online. We reviewed the category and looked at the competition and told our client that we could help her create a network in order to talk to people online about her style of yoga and the DVDs she produced.

The client wasn’t too thrilled initially, in fact, she downright hated the idea, but we held our ground. The thing of it is there is millions of yoga DVDs and differentiating one yoga DVD from the next is a hard nut to crack. I’ve tried a few yoga DVDs in my time, and I usually try the ones with the highest ratings on Amazon or whatever is being endorsed by celebrities like Gwyneth Paltrow or Madonna. Years ago I bought the NYC Ballet Company fitness DVD because Sarah Jessica Parker swore by it.

Lame as it might be, word of mouth is how most consumers make their buying decisions. Even if the recommendation comes from a total stranger it’s better than nothing. At least a rating and review provides some form of context. I also like being able to try before I buy. Video samples and video podcasts are a brilliant way to give potential customers a digital taste.

Anyway, during this time I was browsing through Mashable, and noticed a banner for a CMS platform called SocialGo. On the SocialGo website I found a case study for a site called Earthlings.

When the owners of Earthlings started their SocialGO network, they weren’t yet ready to sell their baby clothing products. Even so, they persevered and built a healthy, online community so that when they were ready to sell, they had constant access to a specifically targeted consumer base. “We thought, why not start a community? We can have the ball rolling even before we get our products online,” says Hannah Shone, Co-Owner of Earthlings.

There are a lot of online communities out there, and I think it’s a mistake for any company to think their online community is going to rival Facebook or Twitter – I can guarantee you that a corporate or brand community will never, ever surpass a community based on real-life connections.

Anyway, the goal is to integrate into existing communities and start a dialogue about something you’re passionate about. For my client, it was yoga and living a healthy, balanced lifestyle. This is the perfect kind of conversational fodder, and I imagined she’d take to it like a yogi to a mat. But I was wrong. My client followed my directions and created her own network on SocialGo, and created profiles on Facebook and Twitter. We had custom backgrounds made and showed her how to communicate with people. As a few months passed she arrived at my house looking glum and defeated. When I asked her what was going on she told me that she felt disappointed that no one had bought a DVD and no one on her SocialGo network was interacting.

I was shocked. It never occurred to me that I needed to explain that setting everything up was only the first step. The web is not a field of dreams – there is no “build it and they will come” mantra happening in the background.

First you need to interrupt someone, get their attention by offering them something they’re interested in or looking for, and then provide them that ‘thing’. Once you’ve got the ability to communicate with them and they feel satisfied that you delivered what they were looking for you can then start communicating with them about the next thing they want. Then you deliver that next thing, and so on. This goes on for awhile, and then one day you tell them about something new you’ve got before they even have to ask- why do you do this? Because you’ve developed a relationship, and you aren’t offering them something random- but something relevant and right up their alley.

I'll be blogging about this client adventure more over the next few weeks. Please add a comment or send an email if you have any questions or want to share your own experience with selling products online.