When you should and shouldn’t be spending money on advertising

When you should and shouldn’t be spending money on advertising

Great advertising can do amazing things for a company. The size of the ad spend has nothing to do with results if you understand this. In fact, if you have to spend millions to get the word out, you are probably putting your budget in the wrong place.

While we are an ad agency, our name is The Next Wave Marketing Innovation for good reason. Marketing encompasses the entire brand strategy to connect with customers, and advertising is only a small part of that. Innovation is making you different from your competition, a better mousetrap so to speak. Because we’re students of the craft of advertising, we can pull stories and ads that showcase when Marketing Innovation triumphs over big ad budgets to help illustrate this point. Because we’re also consumers, we can share experiences where companies don’t have a clue on how to keep customers happy- which will undo all hard earned brand equity in seconds.

There is the old adage that a happy customer will tell 3 people, an unhappy one will tell hundreds? That’s kind of changed with the advent of the internet, everyone can tell everyone anything- even if it’s not true. That’s why from the beginning of the rise of Google as the database of human intentions, the algorithm scored results by credibility, which was built by links from those with more links (hopefully from credible sources). So, every customer interaction counts, every response by your customer service people is a test, how you treat your customers is more important than what you advertise. Actions, speak louder than words.

To start off with a positive example, Mike Dubin had an innovative idea- to become “the netflix of razor blades” when he started Dollar Shave Club in 2012. A single, low budget TV spot, that he starred in, went viral. Overnight, Dollar Shave Club was overwhelmed with orders and when he sold out to Unilever in less than a decade for a billion dollars, he was still laughing all the way to the bank. The ad was brilliant, the products passable, and the customer service exemplary (once they got over the initial slam of viral popularity).

Sometimes an ad agency can come up with brilliant ideas for their client to build a buzz. Between 2000 and 2010 Alex Bogusky and his renegade firm out of Miami did it over and over. But, the most noted campaign ideas were for Burger King, a client that had a history of switching agencies every 2 years before going a whole 7 with CP+B. For a case study on their successes see our “Bogusky Freakout” site post on their milestones. They generated more buzz worthy campaigns than any agency known to man, but, when it came right down to the true marketing problem for Burger King- service, cleanliness and consistency, BK could never compete with McDonald’s or even Chic-fil-a. One of our first hires was a customer service evangelist of epic proportions who beat this into our culture at The Next Wave. She went on to a career that took her all over the globe with Starbucks and now as VP of Operations at Shake Shack. You build businesses through positive customer touches- not just sales. It’s “My Pleasure” did more for Chic-fil-a than the cows campaign telling you to “eat mor chickn.”

It doesn’t matter what your business is, you are being measured every time a customer interacts with your brand- from watching an ad, to visiting your site, to mentions on social media to seeing trash with your logo on it. So, when an existing customer contacts you, this is your chance to shine.

Florida Tile makes ceramic tile. It’s a commodity. Most people looking at a wall of tile have no idea what brand of tile it is, it doesn’t have your brand on it, and when they go to the tile store, more than likely, they don’t have a preference for your brand over another- even if they saw an ad with Florida Tile in it. Unless the tile style isn’t like any other on the market (innovation) the tile ad you spent so much money on, could actually prompt them into a store, where they buy a competitors product. Not so when you have an existing customer calling for replacement for their shower tile cove base- that customer wants Florida Tile- to match their bath. This is the moment where your brand has an opportunity to shine. Unfortunately, Florida Tile failed miserably in helping me locate a piece of plain white cove base to match my 30 year old shower install. Last I checked square white tile is always in style, but, their unique size 4.125″ square, their white- and their cove curve- is now going for $15 a piece if someone has it on Ebay (they don’t right now).

Let’s contrast that with Lego, the children’s toy with millions of little unique pieces. A call to Lego gets a totally different response from a company that has decided that making customers happy is their most important marketing tool.

“We have something that we call freaky,” Lütke-Daldrup told me. “Freaky stands for FRKE, which is short for

  • fun
  • reliable
  • knowledgeable, and
  • engaging.

And those four words are something we’ve built our customer service on for probably more than 15 years.”

It isn’t just that Lego Group believes strongly in each of those four words. The reason the company is able to consistently delight customers, even when they’re having a bad day because they just opened a new Lego set to discover it is missing pieces, is that the company keeps these words in balance.

Hannah Quill, the company’s head of writing and tone of voice (which, by the way, is an amazing job title that alone tells you what the company thinks about engaging with customers) explains it this way: “One of the reasons that it works so well is that, yes, it’s fun and engaging, and we encourage people to be creative and have fun when they’re writing, but it’s also reliable and knowledgeable. It’s very important that you’re giving the customer the correct information, and that any promise that you’re making, you are committing to deliver that customer service. Freaky doesn’t solely mean fun and engaging, it also means following through, reliable, customer service.”

The proof is in the results. For example, the company’s net promoter score (NPS), a measure of customer loyalty and satisfaction, is 77 — one of the highest of any company. That means that being good to your customers is good for business. That should be obvious, but sadly, it too often isn’t.

“It’s essential that no matter the inquiry, the team provides the best possible answer and service while also reflecting our core values — and in doing that, they play a very important part to how people feel about our brand,” Christiansen says.

Source: Lego Customers Lose Millions of Pieces a Year. The Company’s 4-Word Response Is the Best I’ve Ever Seen | Inc.com

While Net Promoter Scores are nice metrics, they can only really be calculated for mega-brands, not necessarily small business. But, rest assured, the echo chamber of social media, where unhappy customers tell their friends about how crappy your service was, or how great you are, will have real bottom line results. Lego isn’t a huge advertising power in the toy space, however they have a product that has no direct competition- like the Burger giants, or lodging options.

AirBnB is a category disrupter in the lodging space. Hotels, resorts, destinations are now competing with individual “Hosts” who have a technology to level the playing field. I’m an AirBnB superhost and until recently- an evangelist to other hosts. Now, any recommendations to host come with a caveat- the brands vaunted “AirCover” host insurance plan with up to $1M in coverage, isn’t insurance at all, it’s marketing babble and a hoax. I had a guest who needed a place for 4 days while they were waiting for their new house to be ready. Turns out- the new house wasn’t for the guest- but for his friends- at which point I should have kicked them out- but the family was polite- and they were African- and I didn’t want to be caught in the middle of being called a racist. When they left- late, the house was more messy than normal. They also had more people in and out than the 1 bedroom cottage was built for. They cooked extensively- which is a rarity among my guests who stay less than a week.

About 8 weeks later a guest tried to turn on the oven. The knob just spun. It had been jerryrigged in place with superglue and paper wadding. I filed a claim for the $400 for parts and labor to replace the control and order new knobs. Airbnb told me I had to blame a guest- and had to do it within 2 weeks. This isn’t insurance, this is a guest blaming service. Had the guests just told me they’d broken it- it probably would have been covered, or at least the problem would be between AirBnB and them. Now, according to AirBnB it’s all my problem. Yet, here they are spending millions to attract new hosts to the platform.

Word to the wise, take care of your stakeholder partners first, advertise second. The cost of reimbursing a superhost for minor repairs is way less than the revenue you earn from their being on the platform.

I reached out to support twice and was rebuffed. I reached out on Twitter- and was ignored. Maybe this post will wake them up. Next up, a video, that could go viral, about the failings of their “AirCover” false advertising- oh wait- here’s Nightline with 8M views. Your ad on Youtube only has 52K views.

Size of the claim is irrelevant to the promise of coverage, it’s how you treat your partner. No matter how much you advertise, word of mouth will negate your expensive commercial message.

If you are trying to decide on how much to budget on your advertising each year, the first thing to do is to go out and look at your customer reviews. Make sure you’re delivering happiness first, then, work on delivering a message.

If you need help delivering marketing innovation for your brand, you’re in the right place. We help our clients create lust and evoke trust, the keys to happy customers.

 

A-List Podcast

So you found us from The A-List PODCAST        EPISODE 5003, DAVID ESRATI Intro For those of you in school, who want to impress an agency person with a cover letter, here’s the William S. Howard edition: He sent it, unsolicited, from our internship page. You can...

Your interface is your product

NY Times app gets 1 star reviews after interface change

Change the interface, change your rating.

The New York Times is a very good newspaper and for a long time, it’s digital product was outstanding. Then someone had the brilliant idea to change the way millions of readers had to navigate the news. Gone was swipe between stories or sections. Immediately, the app started to get 1 star ratings.

Apple carved out their niche from Microsoft early on by offering a consistent, easy to use graphical user interface. Every application behaved the same way for most functions. Command S always meant “Save” Command P was “Print” and they had “Save As” for making a duplicate version- that you could rename- until some genius thought this wasn’t needed since they’d added versions. As someone who uses documents as templates a lot- “save as” was a lot easier than “duplicate” then “rename” and then “Move to” but, alas, someone had a better idea.

Voice command is the big new thing. Talking to machines to get them to do things is all the rage, so imagine my confusion when all of a sudden my Google “Smart device” stopped shutting off the music when I said “OK Google, Off” and started saying “I’m sorry, this device doesn’t have power management tools.”

There are lots of examples of companies trying to retrain customers that may prove fatal in the long run. Apple can’t seem to understand that the new iPhones may be the fastest ever, with the longest battery life and the best cameras but, apparently either price, size or maybe the missing big button at the bottom may be changes that customers aren’t ready to accept.

When you train your customer to do things a certain way, make sure you have a very good reason before you change things, and that your customer knows why.

If there is one thing about business in the day of the internet, your competitors and their alternatives are only a google search away. Think through interface changes as carefully as you change prices, distribution, packaging, suppliers and materials. Because your product may now be your interface.

Steal This Handbook

Steal This Hand Book Read Online Download (PDF) Welcome, Surfer “Originality is dependent upon the obscurity of your sources” according to British ad legend John Hegarty. Picasso is credited with “good artists borrow, great artists steal.” We want people to read this...

Podcasts for students of the craft of advertising

We at The Next Wave consider ourselves students of the craft of advertising. We continuously seek out and study the best thinking in the business and then, share it.

Two of the greats in advertising recently were interviewed in podcasts; Alex Bogusky and Lee Clow. Lee gets his own show- which is a bunch of shorts. Alex gets a longer interview than most in the series of one hour interviews that you may find informative and enjoyable. We’ve included links to Apple iTunes for these free podcasts, but they are widely available on other platforms.

Talking to ourselves podcast logoThe first podcast is called Talking to Ourselves which is produced by Omid Farhang who is now Chief Creative Officer at Momentum. It’s a bi-monthly podcast that he calls his “selfish excuse to get the marketing industry’s most admired leaders to share advice, reveal process and routines, maybe tell a few stories, hopefully uplift a few cynics, and divulge secrets to a fulfilling career.” It’s produced in partnership with The One Club, and JSM Music.

Really, you could call this Omid goes to career coaching class, but he is a pretty good interviewer, especially after he gets a few of these interviews under his belt. Before you listen to it though, I’d recommend learning Omid’s story, by listening to him being interviewed by Tom Christmann of “The A List” podcast.

While there are a bunch of episodes, the one that got us started was the 75 minute interview of Alex Bogusky. The best gem was that he tried leaving his own firm a few times when he grew exasperated with Chuck Porter. Things were lining up for him with Wieden + Kennedy to run the Amsterdam office until supposedly Dan Wieden saw his book and put the kibosh on it. Bogusky also is a recurring theme through many of the interviews- because Omid keeps sharing the story of when Bogusky asks him if he had seen the Dudley Moore movie “Crazy People” where Moore is an ad exec in a psych ward who gets the patients to work up ad campaigns that are brutally honest. His takeaway- working in advertising should be a lot like that movie.

He’s just wrapped up season 1- and the list of advertising superstars is impressive including David Lubars, Gerry Graf, David Droga, Rob Reilly, Andrew Keller- note, the list is heavy on Crispin Porter + Bogusky alumni.

One of his favorite things to say is how creative work ages in dog years- what was fresh 5 years ago- often feels ancient, especially after everyone has copied the big idea. Almost every episode he ends with the same two questions:

  • What was the most horrific response you’ve ever had from a client at a presentation?
  • “What was the one big idea that you loved- that never got made.”

The answers are varied and insightful.

Almost every guest has worked at one of these five hot shops:Fallon,  Wieden + Kennedy, Chiat\Day, Crispin Porter + Bogusky, Goodby Silverstein  at one point in their career.

Andrew Keller talks about his being in a band as the thing that most prepared him for being in advertising. Working together in a small group and putting things together so that they are interesting.

John Norman, partner and Chief Creative Officer at Translation (They parted ways after this podcast was recorded and before we posted).makes a unique distinction between design and advertising: Design is to make something worth keeping, beautiful, useful - and advertising is what slos it down on the way to the trash can. Not an exact quote- but- it stuck- so it must at least be advertising…

David Lubars tells the story of how his father worked in advertising and he caught the advertising bug when his father solved the business problem Listerine was facing once Scope came out, with the line “The taste you hate twice a day” which he called a smart way to say that what made the stuff taste bad is what made it work well. That’s what great advertising does.

John Mescall, global ECD at McCann Worldgroup tells the story of the birth of one of the most awarded campaigns ever: Dumb Ways to Die. Considering it was a PSA client that nobody every heard of, the way they arrived at the strategy, the execution, is an amazing story. Mescall also shows his respect for the work of CP+B talking about how it changed the game, and it wasn’t necessarily with perfect craft- but driven by a great idea.

The discussion with Gerry Graf of Barton F. Graf, turns to awards shows and CMO’s and if any of the work that wins actually sells stuff. Makes Graf a hero in our book. Graf also gets a lot of mentions in “The A List” podcast- because he was a teacher at AdHouse NYC and- he also worked with a bunch of the people who make it onto these shows. Put him at the top of my list of folks I want to sit down with at some point.

Jaime Robinson, co-founder of Joan, may win an award for the foulest mouth, yet, since her agency is the newest, you get a sense of wonderment at some of the questions about time allocation and following your gut, even as far as to go with something that comes up right during a client meeting. They are so new, they don’t even have a site up as of this writing.

Rob Reilly talks about how a term “delusional positivity” as a phrase from his Crispin Porter + Bogusky days has made it over to McCann. He believes that they can do anything- which is how incredible work gets done.

Susan Credle, CCO of FCB talks about work life balance. Her answer was to quote something she’d written- and was one of the best I’ve heard for people who might be defined as workaholics: “I’m writing for you, Huffington Post, on a Sunday afternoon. The sun is shining and I want to take a walk in Riverside Park. But as I sit typing and reflecting on these questions, I realize that my work is my life. When I separate them, I resent the work. When I adjust my thinking and realize that this work fulfills me, being asked to answer questions about work on a day off isn’t a frustration but a privilege.”

The Chief Creative Officer of Anomaly, Mike Byrne is almost too self-deprecating. He seems to put a lot more effort into relationships- within the agency, than outside of it. His discussion of his daily journaling and having lunch with someone somewhere other than the office as highpoints of his day are poignant, as are his gritty truth-telling about the fact that his daughter is shooting video and editing it right on her iPhone- and timelines have compressed. He says he’s not as talented as others- but willing to work twice as hard. Anomaly is a different kind of super agency- probably because his DNA is a bit different than other folks.

Susan Hoffman at W+K started out horribly, making a really bad joke about her parents profession and sounding very uncomfortable, but quickly redeemed herself with stories about how the Beatles/Revolution spot got made and the bullets they sweated when the agency was sued for it. The key insight she shared was that hiring people with “a voice” got them honesty, reality and truth. Which is critical to advertising. The Nike campaign for women (If you let me play(- was Charlotte Moore, Janet Champ and Stacy Wall- talking, not just ad people trying to sell you something. It’s not just the mantra “Fail Harder” that makes W+K great- it’s that the people have passion for their craft.

Jeff Kling shares his insight on W+K: “Dan and David believed and still believe in the power of the individual voice to do something special. It’s because they have a real philosophy and approach that believes in that. They’re essentially renting individual voices, visual and verbal voices, they’re renting those voices to brands, and in the process letting people do wildly special, unique and individual things, and making the brands on whose behalf of those people who express themselves,  very human, very relatable. That’s why Wieden creates brands.”

One of the most interesting interviews for young creatives looking for career advice comes from Justin Gignac, the co-founder of Working Not Working. In a gig economy, building a body of work requires some investment in real, long-term relationships, and the long term growth potential in a real job vs a gig job is exponential.

Lee Clow will only say this once logoThe second podcast we’ve been enjoying is “Lee Clow will only say this once” which comes with the following description: “Listen up. Lee Clow is only going to say this once. For the 50th anniversary of storied advertising agency TBWA\Chiat\Day, legendary advertising savant Lee Clow answers 50 questions from colleagues, industry leaders and industry newcomers. Talking with Clio editor-in-chief Tim Nudd, Lee shares his wealth of knowledge and experience, discussing topics both personal and professional. From from his early years at Chiat\Day, to the agency’s celebrated partnership with Apple, his personal creative process, the industry’s future, and even his favorite Twitter account, there’s no shortage of wise words from an even wiser man.”

One Clow gem is what he thinks makes someone good at advertising: arrogance and insecurity. Arrogance in that you believe you can change the world and insecurity that you may be fooling yourself. He also talks about having to lead clients through the idiot forest- ain’t that the truth. That phrase is also talked about in several episodes of “Talking to ourselves.”

We’re always looking for resources to expand our knowledge of advertising. It’s part of the reason we’ve always had our Booklist on this site. If you have some recommendations for podcasts, video channels or other resources, we’re all ears. Leave your suggestions in comments.

The A list Podcast Logo(a few months later) Another podcast we’ve since started listening to is “The A-List” (link to iTunes) which comes from our friends at DiMassimo Goldstein. It’s their Executive Creative Officer, Tom Christmann. It’s much more raw, unedited and sometimes the sound quality is so bad it’s painful. If I had a dollar for every stutter, uh, ah, or time he said “the kids” I’d be buying the Washington Post and divorcing my wife.

It’s supposed to target young creatives, to introduce them to the old guard, and sponsored by Ad House NYC. Yet, making jokes about how kids won’t understand what paste up is, or pre-internet advertising isn’t really helpful or interesting. Neither is Tom’s habit of talking over his subject, interrupting frequently and name dropping- Dan in Portland, Rich in San Francisco, Lee in LA, uh, yeah, I know who these people are- but don’t assume your target market of young listeners do. (update- many episodes in) Christmann gets much better as he gains experience and slows down.

That said, he also feels it’s very important to talk about where he worked with the person in the past and sometimes wanders off into what could be considered office gossip. A good editor could cut these in half- and still have a lot of good content- except because of his “interview style” of talking over people- it’d be edit hell. He has some of the some people “Talking to Ourselves” has- and between the two, I’d always prefer Omid’s interviews so far, but because he’s so unstructured sometimes he gets lucky and gets a few extra tidbits. He’s also more likely to interview people Omid wouldn’t- so you get to hear from some journeymen instead of just the stars. Calling it “The A-List” may not be truth in adverting, but, if you are looking to expand your horizons or learn more about how folks rose to prominence- this works. Hopefully, Tom will read this, write a brief for his podcast so he stays on point, and works on both audio quality and his interview style and this podcast improves to actually warrant its lofty title. (again- it does improve over time. I think later episodes are really good).

Update: Aug 20, 2021- The A List featured our founder, David Esrati on an episode. Tom’s learned a lot about Podcasting- he no longer interrupts or talks over his subjects- and he’s now the dean of AdHouseNYC - and working freelance. Take a listen.

If nothing else, think of these as a kind of time capsule of the industry- interviews of people who made a difference in Advertising- at the start of the internet era. Much like StoryCorps- but for advertising.