Advertising - The Next Wave

Apple recently reported their second quarter earnings of 2012 and to say the least, they are very, very impressive.

How did they manage to do that?!

Apple has provided astonishing goods, services, and they have kept amazing relationships with their customers, but as most business owners know there’s more to it than that. The reality is that they’ve created paradigm shifts and they’ve always thought different. That’s the true strategy that brings in $11.6 billion in quarterly net profits. It’s all about providing nothing less than amazing.

Creativity is the core of advertising

We’re in the business of creativity. Advertising is just a word to describe the industry we’re working in. We’re no Apple, but what we do brings our clients larger audiences and noticeable presences. Yes – we will work closely with you, but what’s more important is that we will think differently to market and grow your business.  Google has said it best: don’t be evil.  It’s easy to understand why it’s wrong to be unfair to your customers, but what’s more crucial is understanding that you are hurting yourself every time you attempt to repeat history.  Make your own history. Take the risk – make decisions that are odd and abnormal. If you are the first one to do it, then you’ll be the first to get noticed.

Questions for the small business owner

So what are you doing to make sure your customers remember you? How are you reaching them? How are you thinking different?  If you can’t answer these questions quickly maybe it’s time to change what you’re doing.

Our motto is simple – our job is to make you more money than you pay us.  We are here to do precisely that, so what’s stopping you?  It’s time to establish your brand, attract an audience, and permit the edge of the universe to be your limit.

I’m not going to go Sun Tzu on you, but a guiding principle in warfare is to attack where your enemy is weakest. In judo, you try to make your weakness your strength. Political advertising may be one of the areas where this is toughest- since incumbency and large campaign chests are considered prime indicators of product value. Shrewd political contributors don’t give to longshots, they bet their dollars on who they think can win. It’s the nature of the game, and a very hard marketing battle.

Think of it as launching a challenger brand, with no money, no time, and a very absolute deadline to dominate the market (election day). Can you imagine Procter and Gamble launching a new detergent and having to have 51% of the market make a purchase in two months?

Here is our first shot at launching a local political activist into a National Congressional race. Please note, not only did the candidate star in the ad, he wrote it himself (unlike his competition) because of course, the candidate is the same person writing this post.

it is also available as a downloadable iPod version here: http://esrati.com/?p=490

One of the keys of viral marketing and leveraging your low budget campaign is getting others to talk about it- the “word of mouth” factor. You can’t count on this happening automatically. This is where your established network of customers can make or break you. First, you have to actively tell them that the campaign is out there. Digitally- this means sending e-mails, posting appropriate comments in appropriate places, and reaching out to people who think as you do. It used to be marketing to the influencer or early adopter- now, it’s to your social network either formal (Facebook, LinkedIn, MySpace) or informal as I did. Here is what creative genius Ernie Schenck said about the spot:

Ernie Schenck Calls This Advertising?
Seriously, people, show me a spot in this already tired political year that comes close to this simple little gem from Dayton ad guy, David Esrati, and I will eat my moustache. Attention, candidates: A little imagination, a little self-deprectation and a little ability to lighten up can go a long way. The man ought to get elected on the spot alone. Nice work, Esrati.

A client, and really smart guy, Charles Halton posted on his Awilum site:

it’s the funniest political ad I have ever seen. If politics were more like this it would make election season actually fun!

Another client, who happens to be a member of the Democratic Underground site posted it here:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385×82652
which quickly became the highest click through on YouTube- even though the numbers are very low for what it has to do. (more…)

Today I was at the farmers market and their were clowns/mimes there from Cirque Du Soleil doing advance work for the Saltimbanco show next week. Call it “street teams” or guerrilla marketing, it was refreshing to see a business go out and actively seek customers in their environment. Doesn’t happen much anymore. We’ve gotten lazy- trying to invite our message in by interrupting their entertainment with commercials, their landscape with billboards and their websites with ads.

But while I was shopping, I was listening to American Public Radio’s Marketplace on my iPhone, and heard a story of how Procter & Gamble invented the market for Crisco- and it reminded me why they are the marketing powerhouse- not just by dollars spent, but by long history of working hard to connect with consumers. Our current industry fixation with “Branded Content” is nothing more than a new name for the soap opera- a P&G invention.

Here is an excerpt of the podcast- and a link to the whole she-bang. Highly recommended short podcast:

Marketplace: Crisco: A marketing revolution
…Crisco maker Procter & Gamble was a pioneer in the emerging science of creating demand. Historian Susan Strasser says the Crisco experiment started in 1911, when the company was selling Ivory soap. Cottonseed oil was a key ingredient.

Susan Strasser: And they decided to develop a product that would use a lot more cottonseed oil, so that they could control that market, really.

P&G’s scientists came up with this white, fluffy substance. It sort of resembled lard, and yet had no taste and no smell. It wasn’t food, exactly, but the company would ask consumers to bake and fry with it. Thus began an American mass-marketing milestone.

Strasser: Originally, they tried to call it Crispo, but then they discovered that a cracker factory already had the trademark.

P&G hawked its new product as a “scientific discovery.” The company sent free samples to every grocer in America. They held Crisco teas — an early version of the focus group. P&G even niche-marketed the product as kosher to the Jewish community….

In the podcast they talked about how P&G educated the consumer in how to use their products- something that the web is incredibly useful for. Yet, how many company websites feature big how-to communities built around their product?

For instance, BMW motorcycles has an xplor area that’s focused on tips and tricks for sport touring – the segment of the market that they have a preferred position. How to pack your bike best, tips on GPS usage, and segments on where to go. However, it’s a members only site for BMW owners- you have to provide a vin number- and not open to the general public. Why not open the doors- so that potential customers can get a feel for what “joining the family” by buying BMW means?

Back to the Crisco story:

Marketing scholar David Stewart says P&G’s genius was not only giving people a convincing reason to try the product but training them to use it as well, with free cookbooks and recipes.

David Stewart: First of all, they focused on the health benefits — recognizing that this was a time we didn’t know about transfat and so forth. And then they taught people how to use it, they taught people how to cook. They gave them ideas. And between giving them a real benefit and information about how to use the product, they were able to get people to adopt it.

Crisco’s crowning achievement was creating demand for something nobody knew they wanted.

In today’s open information economy- putting your “recipes” behind a log-in is as silly as trying to charge for it. Would Google have been as successful if they had asked users to pay per search? Sounds absolutely stupid, doesn’t it? How about having to log in to use Google? Again, very silly.

To make friends with consumers today you have to be informative, useful, practical- and be able to demonstrate value. So, before you do an ad that is either hard sell- or entertaining- think first about what it does to enhance the customers life. The same way P&G introduced Crisco as the consumers friend: “Honestly, with a little Crisco in your frying pan, you can have supper on the table in a jiffy.”

That was marketing.

I guess they are stuck on companies that start with V in their rolodex at Volkswagen- bringing in former the Volvo ad director to direct marketing and VW agency Crispin Porter Bogusky to try to sell some Vee dubs in the USA. It won’t help until VW addresses shoddy workmanship, poor resale value, low JD Power ratings and now, they will be fighting a rock bottom dollar when compared to all major world currencies. VW may as well put a revolving door on the office- and keep it spinning.

Volkswagen Taps Volvos Ellis as VP-Marketing – Advertising Age – News
Volvos global advertising director, Tim Ellis, is moving to Volkswagen to run its North American marketing operations, according to a Volkswagen spokesman…

New title
Though his title is new, Mr. Ellis will succeed Kerri Martin, director of brand innovation, departed the automaker in January. Volkswagen works with MDC Partners Crispin Porter & Bogusky in the U.S. and Omnicom Groups DDB Worldwide elsewhere. Volkswagen spent about $419 million in measured media last year the U.S., according to TNS Media Intelligence.

Mr. Ellis ran the recent account review that ended up with Volvo shifting its global ad business from Havas Euro RSCG to sibling Arnold and independent Nitro.

In a recent interview, Volkswagen of America President-CEO Stefan Jacoby told Ad Age that the marketer didnt plan to change agencies, though he did say some of the work done under Ms. Martin was too narrow. “We have to address our communications with a wider net,” he said.

Creative reputation
Since joining Volvo in 2003 from independent Swedish agency Forsman & Bodenfors, Stockholm, where he was a managing partner, Mr. Ellis, an American, has been known for doing more creatively with fewer ad dollars than his competitors.

Mr. Ellis is best known for 2004s “Mystery of Dalaro,” a hoax that started with a fake news story about 32 families in a tiny Swedish town all buying the new Volvo 540 model on the same day from the same small dealership. That led to a documentary about the eerie coincidence, which was soon revealed as a fake, by a director who didnt exist. The “Mystery of Dalaro,” created by Euro RSCGs Fuel Europe, ran across Europe in TV spots, and at great length on Volvos website.

Mr. Ellis, and Fuel, followed up with another low-budget, web-oriented effort called “Life on Board.” To make Volvo seem warmer and friendlier, they staged a series of conversations pairing interesting people who had never met getting to know each other by chatting in a Volvo.

Interesting revelation that VW spent $419 million on media- a bump from what was previously reported as a $300 million dollar account. Also, Mr. Ellis moved Volvo to Arnold- VW’s previous agency. Could a change be in the works? Stay tuned to the continuing drama of VW’s search for the old Bernbach mojo.

Once a year the local runaway shelter, Daybreak, hosts a fund raising breakfast where they have table captains invite 9 people for a free meal.  Of course there’s a catch, you have to sit through a program that makes you feel warm and fuzzy about their charity cause. This year, the fifth year of using the “secret formula” for raising money- Daybreak asked The Next Wave to provide the 7 minute video for the event.

Yes, folks- it’s prescribed as 7 minutes, and you are supposed to make the audience cry 3 times. It’s near the close of the session, just before the gut-wrenching, heartfelt story of success despite the odds, and the final ask for donations.

After watching the four previous years videos, we knew one thing- we weren’t going to do anything like them: a montage of interviews, “recreations” and narration by staff. It was time for something totally different- something where you wouldn’t know what’s coming- or get caught up in the delivery of the story- just a focus on the story.

Our original idea was to draft David Chappelle to do the MC of the video- and I actually spent 20 minutes talking with him, face-to-face, and offering to pay him to help us out. The goal was to bring national attention to the shelter- and to make more kids aware that it was a positive place for them- instead of an option of last resort. Unfortunately, Mr. Chappelle isn’t reliable- so we found one of Daybreaks own to step in- Mr. Robert Neal Jr.

By placing the clients behind the screen- 60 minute anonymous interview style- we knew that our audience would focus on the story- not on the personalities, when the ending came, it would all draw together in a powerful close. We didn’t want slick production values- and the number of times we had to set up made it an even more daunting task- but the real payoff was the results- watch the video before you look to see how effective it was.

I watched the audience at the table next to me: totally riveted to the big screen, when the totals were counted:

(more…)

We teach a seminar called Websitetology to try to educate clients on web 2.0. We also teach a fair number of other ad agencies (even the local competition) because, well, that’s the kind of people we are.

One of the things we stress is that if you aren’t on the first page of Google you don’t exist, and that content drives traffic. Build valuable content and they will come.

Unfortunately, it’s falling on mostly dead ears. Even huge advertisers like Apple, Burger King and BMW don’t seem to understand how to port their marketing to the web properly. It’s not about how your site looks, especially your “home page”- it’s about the content on every page: every page is home for someone- about something.

So- it was good to see new media bigwigs Avenue A/Razorfish do a study to confirm what we already knew- excerpts from the Ad Age article follow- with a short primer on what we know works on the web:

Do Home Pages Have a Place in Web 2.0′s Future? – Advertising Age – Digital
Avenue A/Razorfish: Brands’ Main Sites Decline in Importance as Consumers’ Reliance on Search Grows
By Abbey Klaassen Published: October 01, 2007

Garrick Schmitt was sitting in a meeting, listening to a client talk about the need to make its website “Web 2.0-compliant,” complete with tag clouds and profile pages. “Tag clouds?” thought Mr. Schmitt, VP-user experience at Avenue A/Razorfish. “Really?”…

The request seemed curious to him — do that many people really use tag clouds that a brand marketer’s website needed to incorporate them? Surprisingly, he couldn’t find the answer to that question. So he decided to find out. (more…)

Apple may have missed a golden opportunity by not releasing the original sound bed to the “switch” campaign (Hello, I’m a mac, and I’m a PC)- but, TBWA/Chiat Day isn’t asleep at the wheel anymore.

A user generated ad by an 18 year old student in the UK is getting a quick remake in HD for broadcast after gathering interest on YouTube. [update] If you want to compare the ad- here is the Apple version- although the link may change (due to Apple still not understanding the principals of the social web: http://www.apple.com/ipodtouch/ads/

The New York Times sees this as yet another nail in the coffin for the advertising business- and they are probably right. In a networked world, where the consumer has the ability to be on a level playing field as your corporate mega-site, it’s no longer about delivering a message, but managing the communications between market and manufacturer.

Student’s Ad Gets a Remake, and Makes the Big Time – New York Times
The idea that you do not have to be a professional to create a good commercial is becoming widespread, in a trend known as consumer-generated content. Leave it to Apple to, paraphrasing the company’s old slogan a bit, think differently.

A television commercial for the new iPod Touch from Apple, scheduled to begin running on Sunday, 10-28 is being created by the longtime Apple agency, TBWA/Chiat/Day. It is based on a commercial that an 18-year-old English student and Apple devotee named Nick Haley, who says he got his first Macintosh when he was 3, created on his own one day last month.

His spot offers a fast-paced tour of the abilities of the iPod Touch, set to a song titled “Music Is My Hot, Hot Sex” by a Brazilian band, CSS.

Mr. Haley said he was inspired to make the commercial by a lyric in the song, “My music is where I’d like you to touch.”

He based the visual elements on video clips about the iPod Touch and other new products, which can be watched on the Apple Web site (apple.com). He uploaded his commercial to YouTube, where it received four stars out of a possible five and comments that ranged from “That’s awesome,” followed by 16 exclamation points, to “Makes me want to buy one and hack it.”

As of Thursday, Mr. Haley’s spot has been viewed 2,131 times on youtube.com. Among the viewers were marketing employees at Apple in Cupertino, Calif., who asked staff members on the Apple account at TBWA/Chiat/Day to get in touch with Mr. Haley about producing a professional version of the commercial…

Creative visionary and leader of TBWA/Chiat Day Lee Clow seems to be amused by this new world- and seems to get the emerging 2-way nature of advertising.

Consumers creating commercials “is part of this brave new world we live in,” said Lee Clow, chairman and chief creative officer at TBWA Worldwide, based in the Los Angeles neighborhood of Playa del Rey.

“It’s an exciting new format for brands to communicate with their audiences,” Mr. Clow said. “People’s relationship with a brand is becoming a dialog, not a monolog.”

The commercial based on Mr. Haley’s spot will be seen on football games Sunday afternoon and on “Desperate Housewives” and Game 4 of the World Series that night. It is also to be shown in Europe and Japan.

As for how faithful the professional spot is to the amateur version, Mr. Clow said, “we didn’t mess with his content” because “it has a charm to it, a youthful fun.”

The changes include more polished editing and filming the new version in high definition.

“My input was totally respected,” Mr. Haley said, adding that he considered the agency’s commercial “pretty similar” to the original.

The experience of working with the agency executives was “overwhelming, surreal and fantastic, all in one,” said Mr. Haley, who is studying politics at Leeds.

“This is my first taste” of advertising, he added, but offered a thoughtful response when asked what it means if consumers like him are willing to make commercials.

“That’s the whole point of advertising; it needs to get to the user,” Mr. Haley said. “If you get the user to make the ads, who better?”

As heartily as Mr. Clow endorsed the concept of user-generated content, he suggested that turnabout is fair play.

At TBWA, “we’re producing films we put on YouTube that we make in a day and a half in the parking lot,” he said, laughing.

The big question is how much did TBWA/Chiat Day charge for the “big idea” that came from a consumer? And does this signal the end of non-disclosure statements, and releases for any suggestions for campaigns? Are the locks coming off the doors of the creative think tanks? Will the best marketers of the future be the ones who throw open the doors with the customers to establish the brand together?

Stay tuned. And what do you think?

[update] note, it seems a lot of people are still confused between an iPod Touch and an iPhone. The product looks so similar and does so many of the same things, that people are searching for iPhone and “Music is my boyfriend”- maybe Apple should have considered a different back panel- not chrome and a different menu look for the Touch- I often look at the main menu of the screen and think the icons should be bigger to fill the screen.

Lyrics to “Music Is My Hot, Hot Sex” by a Brazilian band, CSS as in the new Apple iPod Touch commercial:

From all the drugs the one i like more is music
From all the junks the one i need more is music
From all the boys the one i take home is music
From all the ladies the one i kiss is music (muah!)

Music is my boyfriend
Music is my girlfriend
Music is my dead end
Music is my imaginary friend
Music is my brother
Music is my great-grand-daughter
Music is my sister
Music is my favorite mistress

From all the shit the one i gotta buy is music
From all the jobs the one i choose is music
From all the drinks the one i get drunk is music
From all the bitches the one i wannabe is music

Music is my beach house
Music is my hometown
Music is my kingsize bed
Music is my hot hot bath
Music is my hot hot sex
Music is my back rub
Music is where i’d like you to touch

Claro-que-sim
Fui escoteira-mirim
Direto da escola, não
Não ia cheirar cola
Nem basquete, pebolim
O que eu gosto não é de graça
O que gosto não é farsa
Tem guitarra, bateria, computador saindo som
Alguns dizem que mais alto que um furacão (rhéum)
Perto dele eu podia sentir
Saía de seu olho e chegava em mim
Sentada do seu lado
Eu queria encostar
Faria o tigela até o sol raiar
Debaixo do lençol
Ele gemia em ré bemol
Fiquei tensa
Mas tava tudo bem
Ele é fodão, mas eu sei que eu sou também

When friends send you ads because they think they are “clever” – your faith is restored in our profession. Before I did a quick Google search on the ad, I already suspected it was the work of WongDoody out of Seattle. Not that it was stylistically identifiable- but because it was clearly an amazing use of a small budget to create something that was worth passing around.

That, my friends, is the mark of a great ad agency, one that understands our mantra of “It’s our job to make you more money than you pay us,” – that seems lost on many of the mega-agencies.

Here is the synopsis of the ad campaign from AdRants:

Adrants » Horizon Air Convinces Sloggers The Slog Is Not the Best Way to Travel
But the way WONGDOODY crafted the site – a collection of videos highlight each of “the slog’s” oddities and frustrations Old West-style – lends a certain attraction to the road.

In addition to the site, the campaign also includes print, radio and a branded truck with a museum-like diorama of the road that makes stops along the highway. Brochures will also be handed out to travelers on the road convincing them Horizon Air is really the way to go. In all, it’s one of the best airline campaigns we’ve ever seen.

To briefly explain how the campaign works so well on a limited budget:

• The campaign connects with consumers based on a fundamental truth: commuting by car can really suck.
• The small video clips aren’t video at all- but sequential stills with a solid voice over. This saves considerable cost to the client, yet delivers a comparable effect.
• The short vignettes are funny- “the suicidal marsupial, the speed bump possum” doesn’t make it into every campaign.
• No matter how entertaining, the stories connect back to the consumer/commuter to parts of their regular journey in a way that almost can’t but remind them that “I could have taken the plane.”
• The campaign was supported by other low budget yet highly visible media to connect to the site.

There are of course a few flaws in the strategy- one being that while the time you save from your I-5 Slog by flying over all those dead possums- you now have to deal with the TSA and their less than friendly shake downs, not having a car when you reach your destination (not as bad for destination Portland where you can find decent public transit- not good for Seattle bound folks where it’s still car culture).

From a delivery standpoint- WongDoody hasn’t made the site as search friendly as possible- and have totally failed on accessibility standards. That’s the norm for almost all agencies today. Without costing the client, Horizon Air a dime more, the site could have been built in a way that met all 508 requirements and had exactly the same effect- only being much more search and consumer friendly.

For instance, there is no way to send you a link to just one of the funny stories- like the one about the dead possum in the middle of the road. I also abhor any site that starts playing audio without specific instructions for it to- just in case I’m looking at something somewhere where I shouldn’t be (like watching this at work).

All that aside, working with a smaller creative shop like Wong Doody can definitely get a client much better results than working with a mega agency. Not only is the work top-notch and yet affordable, they are genuinely nice people as I remember setting an appointment with Pat Doody on my last visit to Seattle on a moments notice.

So, next time you are looking for a big bang for a smaller budget- look to agencies that deliver high value concept- not high dollar production expenses. Making your advertising budget work hard is the mark of a true hot creative shop, and when that happens- friends and strangers will start sending out emails about your last campaign calling it clever.

Last Friday I ended a 9 year relationship with Sprint. It didn’t have to be that way, but failed customer service policy made it inevitable- and also, made it unlikely that I’ll ever say anything nice about Sprint ever again.

So, today when the CEO resigned- and they announced a major loss of customers, I wasn’t surprised. I’m sure my story is repeated every other minute- and it’s not the advertising that’s at fault, it’s bad customer service.

First, here’s what Ad Age said about the churn at the top- and then I’ll share my story and how Sprint could reverse it’s fortune:

Sprint CEO Resigns; Carrier Announces Major Loss of Customers – Advertising Age – News
SAN FRANCISCO (Adage.com) — Despite $1.78 billion in ad spending, and its hiring of one of the leading ad agencies in the nation, Sprint Nextel continued to bleed customers in the most recent quarter, leading to the resignation today of Gary Forsee as chairman and president-CEO.

In a statement regarding the resignation, Sprint also said it will announce that during the third quarter it lost some 340,000 postpaid wireless customers, that is, customers who pay a bill each month instead of those who pay in advance for a limited number of minutes. (more…)

Fallon may be winning the battle as the womb of new agencies – as I’ve stumbled upon yet another spin-off: Zeus Jones. This agency popped onto the scene March 1, 2007 (and deserves extra credit for not naming the agency after themselves).

While we’ve not been very complimentary of Brew: A creative collaborative, or Barrie D’Rozario Murphy and the way they started off online (weakly)- the crew at Zeus Jones scores a B+ for “getting it.” The front page is just a series of places you’ll find them online- starting with their presentation on Slideshare (see below). Very cool stuff.

Zeus Jones Welcomes You.
Zeus Jones approaches marketing differently.
View our credentials to see what we mean by “Marketing As A Service.”

They also have a separate blog: From the head of Zeus Jones which for some odd reason, they didn’t decide to build on their own site- but using Blogspot- which is what stopped me from giving them an A+

The idea of a blog, separate from a site, is old school. Ideally, while having all those places online as place to hang out is great- the fulcrum of your online (the de facto realization of your brand these days) in 2 places is a mistake.

What I had time to look at on ZJ’s sites looked good. They’ve decided it’s not advertising brands need- it’s more of a reason to like a brand- utility. We’ve always thought of our solutions for clients as one that makes the relationship between customers and our clients one of mutual joy, as opposed to a one-way shouting match.

There are some smart, small agencies out there- but, finding and identifying them will take a new kind of filter. With agency search firms still clueless about what makes good web strategy, and Ad Age and everyone else so fascinated by Crispin Porter & Bogusky (us included)- what has been slipping under the radar is agencies like Zeus Jones who seem to have a true Unique Selling Proposition- and the smarts to make it happen in our Web 2.0 world.