iPhone and the future of advertising

Photo of iPhoneSell your stock in ABC, CBS, NBC and FOX, say goodbye to the cable companies, and look at Apple, Cingular, Yahoo and Google. Kiss phone books goodbye as well. Credit cards may go away too. The iPhone is coming this June, and it will change the world.
Already, Research in Motion (the Blackberry people), Palm, Motorola and other “Smart Phone” makers stock dropped, and deservedly so. My Treo 700 is a pain in the butt to use and it’s one of the “better smart phones.”
Steve Jobs has 30 years experience in changing the way people and computers interact and with yesterday’s introduction of the iPhone, he showed why Apple is the master of the GUI (Graphical User Interface). First came the mouse, then the click wheel and now- the scrolling gesture and MultiTouch interface (most touch screens can only read one point at a time). All, in all, it’s brilliant. A phone, iPod and Internet device- but, watch out, it may be way more than that.
When the video iPod was introduced, it wasn’t that the iPod could play video that was the groundbreaking news- it was that Apple was selling “free” TV programs for $1.99. The beginning of a la carte programming delivered over IP. Now, with the iPhone and the new Apple TV set top box, we have the “Remote” that pulls everything together, including a billing system (Cingular) and a whole new way for advertisers to reach highly targeted consumers. Just think, your cell phone bill could be subsidized for you agreeing to watch highly targeted content- based on several different criteria to begin with:

  • Your geographic location- cell phones are mini GPS devices, and as Jobs demonstrated the iPhone integration with Google maps/Google local, he showed us the beginning of a brand new way to access advertising, custom crafted to your longitude and latitude.
  • Your buying habits and payment processing might be handled through Google wallet, with you keeping your running account balance on your phone. Phones have been used in Japan to pay vending machines for years, the iPhone brings whole new levels of integration to your pocket.
  • The end of “Sales” for bricks and mortar stores- if your price doesn’t match what comes up in Froogle, you won’t make the sale. The “true browser” with easy input, coupled with a camera that can probably read product bar codes will put so much power in the consumers hand that all retailers will be able to compete on is better service or immediate delivery. Will that be worth paying a premium? Take a look at what the iTunes store has done to the music industry if you need hints.
  • With its superior interface and WiFi/phone system Internet access, the iPhone will allow users to access company websites on it’s small screen. Jobs didn’t show any Flash sites in the demo, but, by partnering with Yahoo and Google- and showcasing the New York Times- he did hint at the importance of CSS coded HTML which scales, and reformats to different screens easier than Flash. If you have a website that is in Flash come June, you will be missing many of the opportunities of true Mobile connectivity.
  • Last but not least, with a real browser- and an 8 gig drive, consumers will be able to carry your ads, your product literature- right to the point of sale- or discuss your products or service over lunch with friends- complete with sound, motion and data. No more need for brochures- even PDF’s online that don’t easily fit the new screen won’t be as handy a well-designed web interface. Think of having infomercials on your site that entertain and allow 2-way feedback- as well as click to buy options- all accessible from anywhere- anytime, in your customer’s pocket.

There is much more to this iPhone than an iPod, Phone, Internet connectivity- there is the first step of the true 1 to 1 revolution.
Apple stock went up 8 points yesterday. Just wait until June and the full power of this new phone is realized- by developers and marketers.
If the phone works as promised, and the reviews are good, Apple’s stock will climb like Googles- and the web will be a whole new place for marketers to (re) learn.

Unique branding position from The Next Wave gets results

Zen Windows logoWhen we do our job really well- our clients get PR for free.
Dan Wolt was another window salesman, who knew the high-pressure business inside and out. He’d been at the top of a huge window mill- with 150 people setting appointments in a pressure cooker- and then he walked away and went solo.

But how to compete? How does a sole practitioner make enough noise to get noticed above the din of one of the most cut-throat industries known to man?

Our solution was “Zen Windows” a brand that was the antithesis of the standard positioning. His new slogan “Relax, window quotes in five minutes” opened a new conversation with customers who had already experienced the grueling three hour sessions of the competition.

So successful is his strategy, that About.com wrote about it. (unfortunately- the link died)

Replacement Windows - Profile of Zen Windows - Replacement Window Company
Zen Windows - Doing Replacement Windows Differently

If you think your business can’t compete with the Goliaths of your industry- consider what is accepted practice- and think about how you can differentiate yourself. BMW motorcycle dealers are different because they let customers ride demo bikes. Apple built it’s own network of Apple stores- that are as much an experience as a retail environment. Target asked it’s vendors to help them differentiate the product offering with high design products at a reasonable price. What makes your business different?

Can an ad agency like The Next Wave help? Ask Dan Wolt for a reference.

The Next Wave quoted in Restaurant Business Magazine – How to build buzz

Working with small clients, doing great work is what got Fallon, McElligot Rice started in Minneapolis when most big clients thought they had to work with a NYC, Chicago or LA agency. We view work with independent local restaurants as part of keeping our city unique, interesting and fun. It’s also nice when a national publication includes examples of our work as part of a how to differentiate your small business to compete with the big chains.

Dayton’s Original Pizza Factory will never sell more pizza than Domino’s, Papa Johns, Donato’s or California Pizza Kitchen, but, they will have a loyal following and leave every customer smiling.

Restaurant Business Magazine Online - How to build buzz

New Rule #3 Surprise people (and they may surprise you)

Nothing gets customers buzzing like a surprise. Sometimes it’s a new product, or even a stunt.
“Target does great word-of-mouth stunts,” says Andy Sernovitz, CEO of the Word of Mouth Marketing Association. “They didn’t have a store in Manhattan, but they brought a truck of $99 window-unit air conditioners, parked them in Union Square and sold them off the back of the truck.
“The Drury Inn hotel chain gives you an hour of free long distance for every guest every day. It costs them nothing, but the first thing you do when you pick up the phone is to say, ‘Can you believe there’s a hotel with free long distance?’”
Even your humblest item can offer a surprise, says David Esrati, chief creative officer of ad agency The Next Wave in Dayton, Ohio. Like the pizza box he designed for Dayton’s Original Pizza Factory. The front of the box reads, “Smile! Your pizza’s here,” while the bottom says, “If you can read this, it’s time to reorder.” Says Esrati, “Everything you do in a restaurant is an advertisement.”
Unique service also gets people talking, says McConnell. At Cyrus, a fine-dining establishment in Sonoma, California, the hostess alerted the kitchen to a new guest’s arrival. Once seated, a cart came up with champagne and caviar. “It’s an experience I’ve talked about hundreds of times,” McConnell says.
Another gossip-starter is to offer dishes that aren’t on the menu but can be requested by people in the know. California’s In-N-Out Burger has a cult following for its “secret menu,” with burgers like the Animal Style, Protein Style, Flying Dutchman and 4×4. Jamba Juice has a similar reputation for smoothies, with unofficial concoctions like White Gummi Bear, Strawberry Shortcake and Peanut Butter and Jelly.

It’s nice to be quoted in the same article as Laura Ries, Jay Levinson and a mention of Crispin Porter Bogusky’s “Subservient Chicken” site- but what was more important is the results Pizza Factory has enjoyed over the years.

We’ve introduced blogs as a tool for our other restaurant clients, Eclipse and Coco’s Bistro, and although they haven’t fully taken advantage of them yet, once again, The Next Wave is on the forefront of Marketing Innovation.

Ad industry seeks diversity?

I just returned from NYC to attend the first AAAA/AAF Supplier Diversity Trade Fair.

The Next Wave is a Service Disabled Veteran Owned Business, with HUB (Historically Underutilized Business Zone) zone certification. If you are a big agency that’s doing work for the Government, those certifications are very important- it’s Federal law that 3% of your budget be allocated to working with SDVOB and there can be other requirements mandating HUB zone participation.

The Next Wave has been listed in CCR (the Federal data base for eligible contractors) for over 10 years. We have been called by exactly 6 different businesses over those years- either as a last minute effort to include us in a list of “possible subcontractors” in a bid (Leo Burnett for the Army recruiting contract- which went to McCann, and Burson Marsteller on an unnamed project) and a whole bunch of times by the diversity master of the moment at SBC/ATT. It seems that SBC/ATT has very high diversity goals- but very poor follow through.

The list of great ad agencies attending the event was impressive:
Arnold Worldwide
BBDO New York
Leo Burnett, USA
Campbell Ewald
DDB New York
Deutsch
DraftFCB
Element 79 Partners LLC
Euro RSCG Worldwide, New York
Grey Worldwide
GSD&M
JWT New York
The Kaplan Thaler Group
Lowe Worldwide
Merkley Partners
MediaVest
McCann Erickson
Ogilvy & Mather
Publicis New York
Saatchi & Saatchi
TBWA\Chiat\Day
Y&R

and then there was us: The Next Wave.

Since ad agencies don’t typically like to admit to hiring either freelance creative, or another agency to do work for their clients- we took a different path to approach them in partnering for diversity goals: we only talked about helping them understand Web 2.0 and Search Engine Optimization, Direct Mail fulfillment (pimping for a local SDVOB who is also a member of VOB108.org with us) and video production- which we can do in-house, or partner with others to deliver product that qualifies for SDVOB participation points.

Our promo piece included the an analysis of how each of the above agencies compared in number of actual pages indexed by Google. The results were astonishing- of the 22 agencies in attendance, The Next Wave beat all but 4 for accessible, searchable content. Here is what we found:

The Next Wave's handout for AAAA/AAF diversity trade fair2 from mccann.com
4 from greyny.com
4 from saatchiny.com
24 from deutschinc.com
29 from element79.com
37 from tbwa.com
39 from leoburnett.com
52 from kaplanthaler.com
58 from bbdo.com
58 from mediavestww.com
94 from publicis-usa.com
114 from gsdm.com
152 from loweworldwide.com
161 from arnoldworldwide.com
193 from yr.com
212 from merkleyandpartners.com
230 from draftworldwide.com
244 from campbell-ewald.com
260 from thenextwave.biz
480 from ddb.com
577 from ogilvy.com
621 from eurorscg.com
2,220 from jwt.com

Note: Crispin Porter Bogusky, the agency that is known for their viral video and “web and new media expertise” only returns 1 page.

Presenting proof that 82% of the Agencies in attendance have interactive departments don’t understand Google isn’t always the best way of making friends, but most of the representatives there seemed genuinely interested and surprised by the results- and the implications for them.

If you work at one of these big agencies, or others, and want to learn how you need to build websites that have content (including your ads) that the general public can find- and interact with, we are available for consulting.

If you want to find out how to tell how many pages Google knows about in your domain do the following:

  1. Go to Google
  2. type: site:yourdomainname.tld in the search box
  3. it will return the numbers of pages it has indexed and what each page is about and it’s title (if your title says “untitled” or “home” and the “about text” is the same for more than one page- you need to call us ASAP).

We believe “Search Engine Marketing” is voodoo, however, we are sure that if your customers can’t find your content in google- you don’t exist for most of the market.

If you are looking for a way to meet your Federally required SDVOB participation for contracts- we can help you with the following NAICS Codes:
54143 Graphic Design
541810 Advertising agencies
541613 Marketing Consulting Services
541511 web development
518210 web hosting
512110 video production

Will this trade fair generate diversity in advertising? Probably not. But it was a step in the right direction.

Some suggestions for future trade fairs: Supply a database of vendor attendees and their services and qualifications to the Agency buyers- and include that information on the name badges. It would be a huge help.

The other suggestion: Hold it in a place that has a history of supporting diversity, instead of the NY Athletic Club- it seemed almost like blasphemy to be in a place that didn’t have African American Members until the 80’s and was so concerned with a dress code.

When your agency shows up in search- and you don't.

We were doing research on cosmetics branding- and asked a friend who is a former “cosmetina” about who is hot.

She suggested looking at “Tony & Tina” so we did a Google search, and another search, and another search- and couldn’t find the company site. What we did find was this:

Buzz Marketing Group: Case Studies: Tony + Tina

Results
Tony Tina experienced a 25% increase in web site traffic, which led to a major site upgrade.

Unfortunately- the agency didn’t provide a link to the site, nor did the search engines. Must be a pretty impressive site- so hip, they want to keep it a secret.

If anyone knows the url to Tony + Tina Cosmetics- please use the comment section to tell us the link.

If you are an agency, and your client doesn’t come before your site in search- shame on you.

When advertising, brand voice and good design all come together

As always- when the results are good, no one ever says “the ads did it”- but when the results are bad- it’s always the advertising that’s to blame.

When I first saw the “Get a mac” campaign- with the two guys chatting it up in front of a simple white screen- with “Hello, I’m a Mac” and “I’m a PC” I thought that Chiat/Day had hit a home run for Apple. Not only had they gone to a direct product comparison, they had captured the “user friendliness” of the Mac perfectly.

It was also an affordable campaign- with the potential for having legs. With a rumored 27 different executions already in the can- it stays fresh- and on target.

If there was any doubt that this campaign is resonating, Apple just released it’s latest quarterly results- and the news is great.

Apple Reports Fourth Quarter Results

CUPERTINO, California—October 11, 2005—Apple® today announced financial results for its fiscal 2005 fourth quarter ended September 24, 2005, reporting the highest revenue and earnings in the Company’s history. Apple posted revenue of $3.68 billion and a net quarterly profit of $430 million, or $.50 per diluted share. These results compare to revenue of $2.35 billion and a net profit of $106 million, or $.13 per diluted share, in the year-ago quarter. Gross margin was 28.1 percent, up from 27.0 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.

Not to say all honors belong to Chiat/Day- Apple completed their move to Intel processors- making their computers capable of running Windows should you absolutely have to (and unfortunately- due to some bad web coding- there are still some sites that only work for a PC running Internet Explorer). Apple also introduced the new MacBook to replace the iBook giving them one of the sexiest laptops on the market, albeit at a higher price than most entry PC laptops- but here’s the difference- you really do get what you pay for.

A Next Wave teammate who likes to hack things bought a Dell laptop for $800. It had more ram, more HD and a DVDr drive and a 15″ widescreen- feature wise, it looks like a great deal compared to a similar Mac laptop. But, here’s the catch- it’s all plastic- designed like a kids Lego version of a laptop- instead of the sleek, sexy, smooth lines of the Apple product. A photo of a Citroen 2CVWe’re comparing a Citroen 2cv to a Lotus Elise. If you need a hint- the 2CV is on the left in red- and the Elise is in blue on the right. Photo of a Lotus Elise

Apple is delivering a clearly differentiated product- competing on factors other than price, with a consistent brand voice, in a highly competitive market. Will they be number 1? No. Do they have to be? If being number one means you are delivering the most product- at the expense of profits, sustainability will be short lived.

Apple is working on expanding their brand to be central to the “digital lifestyle”- with the iPod being given more credit by stock analysts than it is due. The idea of making life easier for Apple users which is reinforced in every Get a Mac ad- is part of the strategy for Apple’s move into other areas like the delivery of digital content- with the iTunes store- and the much rumored iPhone.

Could these ads sell the new products- definitely. That’s the mark of great ads that bring brand voice, design and company strategy together for results.