There are a few ad agencies that really understand relationship marketing and building brands based on emotional ownership over rational decision making processes- Wieden & Kennedy is one of them.
Since 2004 they’ve worked with Starbucks, a brand that’s been known as a poor client. When your agency fires you as a client, it’s time to do some introspection. Especially if you are a marquee type client.
Getting fired means you are doing something wrong, and Starbucks’ senior VP-marketing seems to be the first candidate for the introspection couch:
In a statement, Starbucks’ senior VP-marketing, Terry Davenport, said Wieden’s decision was a response to Starbucks’ recent move to ask a number of agencies it works with, including Wieden, to “provide ideas to move the brand forward. … And, as a result, Wieden has decided to opt out of the process,” he said.
While Wieden is Starbucks’ primary agency, the retailer has worked with a number of other agencies in recent years on co-branded products. Interpublic Group of Cos.’ DraftFCB, New York, is the primary shop on its grocery coffee business. Starbucks has also worked with Omnicom Group’s Goodby Silverstein & Partners on the bottled Frappucino beverages it co-markets with Pepsi and Energy BBDO for the coffee liqueur brand it co-marketed with Beam Global Wine & Spirits.
But Wieden, which also handled media buying and planning for the coffee roaster, as well as much of its in-store graphics work, had been responsible for the first large-scale advertising in Starbucks’ history, including its first TV push last winter.
Starbucks is a brand that’s a love it or hate it brand. Their market penetration is incredible, as I’m constantly reminded when I pop up my “Starbucks finder” on my iPhone and almost always find one nearby when the coffee urge hits my companions.
And here is where the fundamental problem exists: The best marketing and advertising that Starbucks can do- isn’t marketing or advertising in the traditional sense of the words- because it’s just not necessary. The focus should be on refining a voice through the brand touchpoints and building very tight relationships with their customers through Customer Relationship Management tools. This is hard for both a VP of Marketing to understand and hard for an ad agency to caculate a compensation program for.
Modern marketing techniques don’t come with conventional media billings- and for a company like Starbucks, they shouldn’t. But, an open mind of how to build relationships with customers should be the first order of discussion with any agency who is bold enough to take on this “difficult client.”
There aren’t ad agencies bending over backwards to solve the problems of the micro-enterprise unless they want to win awards, because the value equation just isn’t there. Big clients equal big media budgets, small clients equal no media budget, and even though the media budget shouldn’t have any connection to the compensation of an agency, every one would rather have Burger King instead of Benjamins Burger Meister on their account list.
So, if you own a small business, and may want to be big one day- this post is for you. But, right now, you just want customers and have a small marketing budget and need real answers so here we go.
Branding is the most critical decision you can make. They say “what’s in a name” and the simple answer is everything. Yet, I don’t know how often little thought is given to the corporate moniker and the associated mark. This will be what you have to live with for the life of your business. The name needs to be unique, catchy, have meaning, be memorable- and preferablly spellable with out having to go to phonetics.
Here’s the short don’t list:
Don’t name it after yourself, in case you ever want to sell the business. Yes- I know it worked for Ford, Chevrolet and Chrysler and Toyota, but, there was no Mr. Scion, Mr. Lexus or Mr. Infiniti.
Don’t name it after the location- in case you ever have to move the business ie. Dorothy Lane market has three locations- none on Dorothy Lane.
Don’t make it cute using numbers for words or abbreviations- ie. Marketing4Performance or Gold4yaMouth.
Don’t limit your business by a technology or what you do- ie. “Muffler Brothers” does complete car care and “Dayton Electrolysis Center” now uses lasers to remove hair.
After naming comes the brand mark. Nike originally paid $35 for the “Swoosh” and thought it would never be as good as the Adidas 3 stripes which actually helped reinforce the shoe. Next Computer paid Paul Rand $100,000 for their logo- only to have the company last a few years.
Rule of thumb- it’s not a good logo if only you would ever want to wear it. Invest in a good design.
15 years ago, the URL wouldn’t make a difference- now it does. It’s preferable to get a dot com address- even though search engines have made this really irrelevant (a good site will be found no matter what). Find something people can spell- like www.smileodontics.com as opposed to www.phonyx.com
The importance of a website that can be searched and indexed is absolutely critical- and it’s why we teach our Websitetology seminar at least once a month in our market. Small business can’t afford to either have a static website that isn’t updated frequently, or an over the top Flash site that looks uber cool but can’t be updated or found. If nothing else, make sure your business is listed in Google local.
While we could spend quite a bit of time on building a better site your website must have the following:
While having a great brand and site are a good start- the real problem is how to tell people where you are and what you do- FOR THEM. It’s not about you- it’s about how you solve your customers problems.
If you are a restaurant- what will be different, what is your value proposition, what kind of experience you will provide. This was dubbed “The Unique Selling Proposition” or USP- and today it is even more relevant. In a web 2.0 world where ideally, the consumer is all knowing of all options available, how will you convince them to buy from you? While paid media was the method of choice for the last century, recent studies are suggesting that 57%+ of internet shoppers are more likely to trust “someone like them” than a professional reviewer. Remember where we said customers need to be able to comment on your site- well, either they’ll comment on yours- or someone elses (this restaraunt lasted a little over a year).
Building links to the community isn’t any faster than building an ad campaign. No one shot silver bullet solutions- it’s a long term commitment to forging ties that connect you to your marketplace. Sure, sponsoring t-ball leagues doesn’t seem like a sophisticated marketing strategy, but for an orthodontist, it’s one way to reach kids that will probably need braces.
Mass media is failing small business miserably. While local broadcast TV used to be a viable solution- with the addition of first cable, then sattelite, then competing IPTV over phone lines- it’s becoming less of a BROADcast and more of a hit-or-miss cast. Local radio is now splintered by multiple formats, owned by a very few companies, providing very little localization. People are tuning into internet radio, podcasts and their own personal music servers (iPods). Newspapers are losing readers in droves in print- and picking up readers online- yet, the ads they serve are just as untargeted as before. Until these media build a marketing profile of their customers to gain permission to provide focused marketing in exchange for their content it’s still a hit-or-miss marketing strategy.
This one-to-one marketing relationship is the holy grail of our current media landscape. The best example of providing meaningful targeted advertising is now coming from “sponsored search” where marketing messages are keyed to the topic you are searching. Google has become a mega brand and a powerful force in media by only showing text ads that relate to the searches you are making. No pretty pictures- just words based on your words. Even though 70% of searchers ignore the sponsored ads, these may actually be the best option for small business available. Even with the spectre of click-fraud, and high cost per click, at least the ad is being served to someone looking for your specific product or service.
Ideally, you are on the first page in organic search. It can be done for any business, if you make the effort. Instead of spending time cold calling or shotgun marketing- work hard at building your site to be the “expert’s answers” to your customers problems. We provide the most complete listing of our competition for ad agencies in Dayton on our site as one way to make sure we are considered in a customers search for an ad agency. You can do the same for your local business, or join in a trade association that keeps a list.
While we’ve spent quite a bit of this post on internet strategy, old fashioned Public Relations (PR) and event marketing should also be part of your plan. Even though readership is decreasing in newspapers- there is nothing like an article on your business to build awareness. Look to become friends with local business writers and bloggers- and be available as a source. Any time there is a new development in your field, make sure to write about it on your site- to share your expertise on the subject.
Knowing your customer: We can’t stress enough the importance of getting at least a name and e-mail address from every single customer. Comment cards in restaurants can be a great tool- but only if you reward your servers for getting completed cards from every table. A simple bowl to enter to win a meal, or movie tickets can be your best source of leads for your next promotion.
If you are still reading at this point- you must really care about marketing your business and want to differentiate your business from the competition. Here is the magic that makes small business work- you have passion for what you do, and love being the best at what you do.
Often times this means not taking yourself so seriously. Seriously. Have fun, make your business the place that people like to talk about, make your ads that you do run- fun, friendly and funky. We once names an electrician “Singing Joes Electric”- only to have it nixed by Singing Joes Wife. After years of struggling as the boring “Electrical Quality Services” he bought an established brand “Jahn Electric” and took over their brand. We’ve run into too many people who want to stand out- yet say they want an ad just like the competitions- don’t make that mistake.
When we do posters for the Second Street Public Market events- people steal them, frame them, decorate their room in the same color palette. When was the last time you wanted to take one of your ads home with you? What happens when customers want to wear your shirt, hang your poster up, or stick a bumper sticker on their car? Business.
We have no problem laughing at beer ads during the Super Bowl- but, when it comes to wiring a kids mouth with braces- why not make fun of it? Marketing is about building relationships- and there is nothing better than humor and fun to break the ice.
So when looking for an agency to work with your small business, look for the one that has ads that you would want to take home with you, the ads that speak on multiple levels, that interest, intrigue, inform or just instigate some sort of emotional connection between you and the brand.
You aren’t hiring an agency to spend your money on media- but to give you a message that people would want to make a part of their life. And remember, the agency can only make an introduction- it’s the execution and delivery of your product or service that will cement the relationship and be the platform for your business to grow.
And, of course, the Dayton Business Journal doesn’t include an address, phone or web address with a business story about a start-up, something that would seem obvious to almost any first year journalism student, so, I can’t add anything except a name to our list of “Agencies that aren’t The Next Wave” page.
Ron Campbell, Ike Imhof and Sheila Siefer opened U! Creative Inc. last week in a 2,000-square-foot office in downtown Miamisburg.
The trio are all former employees of Miamisburg-based Wilson Advertising and Design Inc.
As founders, owners and sole employees, the trio said they bring 70 years experience in the market.
The firm will handle advertising tasks including paper or pamphlet ads, newsletters, commercials and branding initiatives. It will also do media placement for radio, campaign organizing and “anything creative in the business world,” said Siefer, director of operations.
Company officials anticipate $500,000 in billings the first year.
As the business grows, U! Creative owners anticipate employment growth as well. By next year, Siefer said the company should have between six and eight employees.
Brian Wilson, president of Wilson Advertising, said he doesn’t expect the new agency to affect his company.
U! Creative executives said they departed to have more control with their own agency. They expect to be competitive in the marketplace, especially with overall pricing.
Siefer said most ad agencies charge markups on outside services. But U! Creative proposes to connect clients with vendors — such as printers and photographers — so the client can manage the projects themselves.
It’s driven by customer need, Siefer said.
“That is why we call it ‘U! Creative,’ and not put our own names on it,” she said.
Campbell, company president, proposed the business venture in late March. Despite rushing to budget financing, order equipment and find a location, officials are confident in the agency’s future success.
While it’s noble to talk about not marking up outside services, the idea that this makes them a better choice for clients is not exactly a ground breaking creative strategy, nor is not putting your names on the masthead.
Having a website that people can find, along with your phone number and address, now, that’s a good starting point.
If U! Creative needs help going online in a way that will actually show up in Google, we highly recommend our www.websitetology.com seminar.
Well, way back in 1988- “how big van we get without getting bad?” was the question on Guy Day’s mind- because Jay Chiat had famously asked “I want to see how big we can get without getting bad.”
Because, creativity isn’t something that comes with a formula, or on demand- and sooner or later, everyone runs into “Creative block”- or can’t come up with the one, really, insanely great idea that carries through for ever- you know, like “Just do it” or “Hello, I’m a Mac, And I’m a PC” etc.
So when über hip, super hot, Crispin Porter + Bogusky landed a piece of the Nike business from the super hot, über hip, old standby agency- Wieden + Kennedy, the ad world gasped. Was no relationship sacred? Were CMO’s so cutthroat as to divorce the one that brought them fame and fortune?
Well- today, after 13 months, and ONE tv ad, Nike pulled the plug on CP+B and went home to the old standby according to AdAge:
Crispin CEO Jeff Hicks confirmed the split in a statement, citing a mutual decision to go different ways: “We will forever be in awe of the company that is Nike and wish them nothing but the best.”
A Wieden spokeswoman could not be immediately reached. A report of the split first surfaced on George Parker’s blog Adscam/The Horror.
Nike first stunned the ad world last April by adding Crispin to an agency roster long exclusively dominated by Wieden. The pairing of one of the most iconic brands of all time with the hotshop was seen by many as a harbinger of trouble for Wieden, but the collaboration thus far resulted in a single TV ad, for the iPod-integrated Nike-Plus brand, which ran in December.
While Crispin Porter is still a wildly successful group of talented people, they aren’t the answer for everything, as Nike found out. With Burger King, VW, and now Microsoft- the burden of being a genius on so many major accounts, requires great management expertise to go with the creative. Growing an agency can be tough. Need proof- look back at Jay Chiat and Guy Day’s questions from way back.
Note to Chief Marketing Officers- there is a lot to be said for institutional knowledge, and a lot more to be said for treating your agency as a trusted partner. When the work isn’t good, remember to check out your own brief and assignment?
You know it costs big money to have three global superstars in an ad. Tiger Woods, Roger Federer, Thierry Henry all appear in this Gillette Phenom spot- and somehow, I’m wondering: is this the best way to sell a razor?
“The word is mine” from getting up in the morning and shaving with the most comfortable razor in the world? I’m sorry, but no one has ever come up to me and said “nice shave”- it’s not quite like pulling up in a Lamborghini.
Superstars, special effects, big budget to run it, yet no real reason that resonates with me, Joe Shaver, who looks at shaving as something I have to do for a few minutes daily. Why should I spend more on a “Phenom” razor? To support the big budget ad campaign? At some point, the reality sets in- no razor is going to let me play golf like Tiger, hit a tennis ball like Federer or play soccer like Thierry Henry. There is a total disconnect between superstars and shower time.
If you are reviewing advertising campaigns for your company and want a simple test of agency competence- ask if another product could be placed in your ad- and still work? If not, time to go back to the drawing board.
This ad could be for any razor- or soap- or even breakfast cereal and not miss a beat.
I bet Gillette could get a better ad without the three superstars, special effects, or glitzy graphics- by just doing a simple head to head comparison ad- if in fact their razor is really all that and a bag of chips.
Google doesn’t spend a lot on advertising, that’s what their competition does. Guess what? It doesn’t matter how much you spend if you are Yahoo, Microsoft or Ask.com, Google will continue to win.
But, kudos to Crispin Porter + Bogusky, they were able to bump Ask.com from a nobody to a better known nobody with their campaign (“Experience Instant Getification” and “The Algorithm”) more than any of the other also rans, up a whole one-tenth of a percentage point.
Guess Who Gained Search Share - Advertising Age - Digital
…scrappy little Ask was dropping millions on a high-profile, Crispin-designed ad campaign and telling everyone it had the best algorithm. So guess which company gained the most share in search this year. Yes, it was Google.
According to ComScore, Google’s share in January was 52.6%, and by October, the most recent month with available data, that number had climbed to 58.5%. Others peg its share as even bigger: Hitwise has it at 65.1% in November, up from 64.1% in January.
In the meantime, Yahoo, Microsoft and AOL all lost share, and Ask was the only gainer, up one-tenth of a percentage point. (It’s not very likely, but things still could turn around in November and December, as those returns aren’t in yet.)
“Google has really become the verb of search,” said James Lamberti, senior VP at ComScore. “It’s a combination of viral and branding power.”
Pepsi vs. Coke
“If you did the equivalent of the Pepsi Challenge and had a blind taste test of Google, Yahoo and Microsoft results, I don’t think people would find Yahoo’s results are necessarily bad,” said Ellen Siminoff, CEO of Efficient Frontier, a search-marketing-technology company. “But it comes down to branding. Google has done a heck of a job continuing to build its brand.”
Absolute search numbers tell a different story. According to ComScore, only one search engine, AOL, declined in terms of total queries. Yahoo gained 5%, Google gained 37%, Microsoft sites gained 15% and Ask gained 24%.
So should marketers be worried? As the search category — estimated at $8 billion in 2007 by Forrester — becomes an increasingly important part of a marketing plan, the seeming consumer consolidation with one player arguably gives Google more control over the search experience.
“Marketers sure would like for someone to give Google a run for its money,” Ms. Siminoff said. “There’s lots of emotional support behind Microsoft and Yahoo.” But, she said, “marketers aren’t spending on Google because Google’s a nice guy but because Google works for them.”
It’s worth noting that the share gains didn’t manifest themselves only in consumer search-engine use. They carried over into ad spending. Efficient Frontier, which has $400 million under its management, said more than 73% of that went to Google in October of this year, up from 62% two years ago.
Looking for innovation
Google is not a monopoly — yet — but luckily for paid-search marketers, even if it were, price inflation is less likely thanks to Google’s market-driven, auction-based pricing.
“Marketers just want to see the innovation,” Mr. Lamberti said. “That’s why there’s buzz around Ask.”…
So even though Google spends less, their brand delivers more. Sounds like serious marketing judo doesn’t it. Here is the lesson to learn, and it applies to all those who want to effectively use Google to drive business to their site: in a land of similar products the only differentiation that you can control as marketer is the user experience - and that is what you should focus your marketing efforts on.
It’s why Apple is the only personal computing company that stands apart from the crowd; why no other online retailer has the customer base of Amazon and why Google is the winner in search. The focus is on the customer experience as much as the actual product. Google could have delivered banner ads- but at the expense of slowing the delivery of results. Amazon could have advertised, but instead chose to spend that money on free shipping. No matter what Crispin Porter + Bogusky does for ask.com, the problem is that search now depends on critical mass and massive investment on technology to refine results- and no one can catch up with Google.
Now, more than ever, there is a science to advertising: deliver answers instead of ads, experiences instead of excess, and results instead of rhetoric. Everything can be tracked and measured either by clicks or by sales, so when looking at an ad agency to deliver customers via search, think twice about the creativity and look for the science behind the campaign. You’ve already found one agency that understands how to make this work or you wouldn’t be reading this.
There are a few ad agencies that really understand relationship marketing and building brands based on emotional ownership over rational decision making processes- Wieden & Kennedy is one of them.