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PR 101 Lesson #100 The Death of A Marketing Machine

Jeff Cole | April 25, 2011

A couple of weeks ago, ABC announced it was canceling the soap operas All My Children and One Life to Live. Both had been on the air for more than 40 years.

The cancellation of both shows marks the continuing decline of a once powerful marketing machine. I think social media is doing the same thing to conventional marketing. It won’t happen overnight – and traditional marketing and public relations should still be part of any marketing plan. However, it is going to happen.

What many people don’t know anymore is that soap operas were started in the 1930s on radio by Proctor & Gamble to sell soap and other products – hence the name. According to P&G’s corporate history in 1933 “‘Ma Perkins,’ a radio serial program sponsored by P&G’s Oxydol soap powder, aired nationally. Its popularity leads P&G brands to sponsor numerous new ‘soap operas.’ Faithful listeners become loyal buyers of P&G brands at the grocery.’” The soaps helped P&G get through the Great Depression. When radio gave way to television, the soaps easily made the jump.

The soap operas came to dominate daytime television. Soaps were “once considered the stable revenue generator of the broadcast television model: the consistently popular daytime staples that helped fund primetime experimentation,” Fast Company Expert Blogger Sam Ford said. But not anymore.

There were once a dozen soaps on the air. There are now just four. Ford wrote that many in the television industry feel those four on their last legs. I think the demise is inevitable.

Like medicine shows and Burma Shave Road Signs, soaps apparently just don’t move product anymore. And that is the ultimate aim of most television shows and other marketing mediums. If it doesn’t sell something, it isn’t going to stay around. The audiences went elsewhere for any number of reasons and the advertisers saw that.

In the case of soap operas, “Many may say it’s because the fans abandoned the genre,” Ford wrote. “The story you often hear from fans is that it’s because the shows lost their way and their interest. As soaps tried to battle over the dwindling daytime audience as if ‘soap opera fans’ were all fans of the genre more than fans of the show, little thought was put into a sustained effort to bring lapsed fans back.”

Does this sound familiar? Let’s look at what’s happening to some other mass media.

“The Audit Bureau showed that average weekday circulation at 635 newspapers declined 5 percent compared with the same six months last year,” the New York Times reported last October. “The decline last year was more than twice that, 10.6 percent, as newspapers struggled through the recession and more readers abandoned print copies for the Internet.” (emphasis mine.)

Just like in soap operas, the advertisers are going away. “Newspaper publishers are still laboring to reverse a massive decline in advertising revenue – the Newspaper Association of America reported that total industry ad revenue fell 6% in Q2,” the Reuters blog MediaFile reported in September.

The same thing is happening in television advertising. “Advertisers are losing confidence in the medium,” respondents to the Association of National Advertisers/Forrester study of national advertisers said. The survey respondents said they have “a lack of confidence in TV ad effectiveness. Sixty-two percent of respondents think that TV ads have become less effective in the past two years.”

So, where are these advertisers going? You know the answer – they are heading to the Internet, of which social media is a part. I could fill this blog with the statistics – 740 million Facebook users, 100 million-plus Linkedin members, Flickr now hosts more than five million images and so on.

Mashable predicts that in 2011, $3.08 billion will be spent on social media in the United States.

“That’s a 55% increase over the $1.99 billion U.S. advertisers reportedly spent on social networking sites in 2010, and nearly 11% of what they are expected to spend on all online advertising in the U.S. in 2011, eMarketer says,” Mashable reported. “Worldwide spending on social networks is expected to rise 71.6% to $5.97 billion, approximately 8.7% of the total amount advertisers are predicted to spend online in 2011.”

Online advertising, which includes social media, is starting to snowball, the Economist reported. “Global spending on advertising will grow by 4.5% in 2011, double the rate of the previous year, according to ZenithOptima, an ad agency,” the Economist said. “This will be led by online advertising which will increase by 16%.”

Look at the Economist chart below. Online advertising is the largest, but it’s the fastest growing.

Chart courtesy of The Economist

So like medicine shows, Burma Shave Road Signs and now soap operas, conventional marketing is slowly going away. It will take some time, but just like those other things, it will happen.

 

 

 

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PR 101 Weekly Rant #52 Social Media Is Not Going To Disappear, But It Also Shouldn’t Be Left Out There By Itself

Jeff Cole | April 20, 2011

I have been reading some blogs lately that claim Social Media is an unsustainable marketing method. These writers make many arguments as to why Social Media is a bubble about to burst. One of the primary is that it is impossible to measure return on investment on Social Media marketing.

The key to that argument is that everything done in a company has to have a financial justification. Every person’s role has to be justified by the effect it has on the bottom line. The argument is that no one can make a financial case for Social Media.

On the flip side of that argument, too many so-called social media gurus think social media is the only marketing method that should be used. They argue that traditional marketing and public relations are passé. They say that using Twitter and Facebook will solve all your marketing problems.

I take issue with both lines of reasoning. It was the bottom line thinkers who almost killed the American auto industry. While General Motors, Ford and Chrysler were using profit to justify every decision, European and Asian automakers were making cars that people actually wanted to buy. Design and market need came first, not profit.

As for the gurus, they are ones causing problems for Social Media. They make outlandish claims about the power of social media. While Social Media can be effective on its own, combining it with other methods leads to much better results. As I always say to clients, you could build a house using only a hammer and saw, but it would a lot easier if  other tools are also used.

I don’t think either side understands how social media works or what its place is in the marketing firmament. I spent part of Tuesday listening to an excellent webinar sponsored by Boston-based Internet marketing company Hubspot. Entitled “Social Media Metrics” for marketing experts provided more than enough ways to show how using Social Media is not only financially justifiable, it is essential. However, they also convincingly argued it is not the only method that should be sued.

Incidentally, if you want to listen to Hubspot webinar metrics discussion go here.

The problem many pro-social media people have is that they try to separate social media from the rest of a company’s marketing efforts, Maggie Georgieva, an Inbound Marketering Manager at Hubspot.

“Social media cannot be separated from the rest of marketing,” Georgieva said during the webinar. “Being good at social media is not the same thing as being good at business. Social media should be used as one tool in marketing.”

I have been preaching that social media should be melded with traditional marketing and public relations since I founded JJC Communications three years ago. I find I achieve much better results when I combine the three methods.

The problem I think anti-social media people have is that they expect too much too soon. Plus, they focus too narrowly on only one measure of success when in reality there are many.

“It is not about how many you measuring, but it is about measuring the right things, the things that can either save you money or make you money, ” Jay Baer, social media author and strategy consultant said during the Hubspot webinar.

Some companies get too tied in measurement, Baer said. He noted that at some point a company has to decide what’s the ROI of measuring ROI. Spending too much time on measuring takes away from other important items, especially client retention and engagement, he noted.

Simply measuring for measurements sake should not be the goal, added Amber Naslund, vice president of social strategy at Radian6, a Chicago-based social media strategy company. The key is to keep measurement as stripped down and simple as possible so an executive can concentrate on what’s most important.

The other thing companies have to remember is not to measure too soon, Naslund said. Data gathering should become as soon as possible. However, no one should try to draw any conclusions until there is at least four or more months of data in the can, she said.

“The goal is not be good at social media,” Baer said. “The goal is to be good at business because of social media. Those are not the same things.”

If you want to see how this can work for your company, contact me – especially if you are in Southeastern Wisconsin or Northern Illinois. Using the trilogy of social media, public relations and traditional marketing, together we can make your business grow.

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PR 101 Lesson 99 Triple-Barreled Branding

Jeff Cole | April 18, 2011

For the past two weeks, I have been writing about branding – what it is and the philosophy behind it. Well, it is nuts and bolts time now. I am going to talk about what I think is the most effective way to turn that product into a brand.

Doing branding so it’s effective means melding traditional media, public relations and social media. Using just one of those methods might be effective in creating a brand. While there are never any guarantees, using the three methods as a trio greatly increases the chances that your product will resonate with potential customers.

Remember, a brand does not exist until it is fixed in a customers mind. Until then it is just something up shelf space.

So, what do you to meld the three? Well, the first thing is to sit down with the client and discuss their goals. Then take a deep breath and do that client sanity check I have talked about. One you have realistic goals, write a plan.

This is what I do. I sit down with a client and talk. We hammer out what is unique about the product or the client themselves. This is important for doing traditional media. You need a hook, something that will make a journalist take interest in the story.

Make no mistake; traditional media should still be in the mix. By that I mean free media. There is no need to buy an ad in a publication or spend thousands of dollars for a broadcast. Those efforts rarely, if ever, resonate with a consumer anymore. Yes, there was a time when they did, but there was also a time when people had to start their car with a crank.

If you convince a journalist to write or broadcast a story about a product, that is a huge endorsement. I think print journalism still has come cachet with consumers, especially those over 50. Yes, print is dying, but it’s not dead yet.

The same goes for broadcast, only more so. With the rise of DVRs, fewer and fewer people are watching commercials. But every study I have seen shows they are still watching local news. A piece of local news is another good way to build a brand. Most local news shows still have credibility.

Of course, that is only leg of the marketing stool. Social media has to be part of the plan – in fact it should lead the plan. The tools are many and should be used in tandem with traditional marketing methods.

I usually start my clients out with blogging. Every study I’ve ever read shows blogging is the best way to build credibility. Remember, a blog is not a sales document. It is a way to build credibility. No one is going to think a product is credible if the company making it is not viewed that way.

What a blog is a way to demonstrate expertise and ability. No one likes it when a company thumps its own chest. What readers do like is when a blog provides answers to questions or solutions to problems or just general knowledge.

A blog is also good for monitoring what customers think. I know I continually hammer on this point, but you want to hear both the good and the bad comments. The good can be used to help build the brand; the bad can help correct mistakes.

Facebook pages can be used the same way. Twitter is a billboard that allows you to tell people wants going on with your product. YouTube is invaluable for actually showing people what a product does.

Then there are such things as trade shows, samples and all that other good stuff. I could write a complete blog on each of these items. But enough for now.

Next week I want to talk about once cutting edge marketing vehicles that no longer work.

 

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About PR101

I post this blog every Monday and Wednesday. On Mondays, I will discuss the how-to of public relations, marketing and social media. On Wednesdays, I will review and discuss marketing campaigns. I am always looking for topics and input. My email address is in the next paragraph. If you want to subscribe to this blog, please use the RSS feed link in the upper right hand corner. In addition, please join my community. In the upper right hand corner, there is a widget marked Google Friend Connect. Please join. This is an example of cutting edge social media. My background: I worked as a reporter for 25 years in central Illinois, upstate New York, suburban Detroit and Milwaukee. I now help clients with marketing communications through my company - JJC Communications LLC. If you want to know more about my company, and myself, click the link. It's a cliché, but it's true for me: no job is too big, no job is too small. I have worked with companies on the Fortune 500 list and I have worked with companies that have one employee. The service I provide is the same for all. Email me at jjcole54@gmail.com.

 

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