Savvy
B2B Marketers Sell to an ‘Ecosystem of Influence’
Steve, can you tell us hotheir behalf.w The Online Advertising Playbook came about? About three years ago, Pat McGraw, Chief Marketing Officer of Gillette came to see us. He said: “I have $3 million to spend this year and I have no idea what to do with it. I really don’t need another highly charged sales pitch on the power of Internet advertising. What I would like to know is how it works and why it works.” In response, my colleague and co-author, Taddy Hall, put together an advisory board. We found there was a big knowledge gap out there on the media landscape. Advertisers (media buyers) keep telling us they don’t know how it works and media seller (vendors/publishers) keep telling us they do know how it works. Our task was to round up the best of what we do know and synthesize it. Principles, tested strategies…offer industry best practices and proven techniques going forward. The Playbook reviewed over 1,200 academic studies, industry research, professional articles and case studies of brands using online advertising. From the one-third making the cut for research quality and source credibility, we developed strategic principles and guidelines for effective online advertising, and illustrated each one with cases. We learned that online advertising can be effective across the full spectrum of marketing objectives from lead generation to loyalty. Any special insights for B2B marketers? In B2B media you’re the hunted. You’ve got to be where prospects can find you. Once they find you (for instance on your Web site) they want to interact with you. But that interaction’s got to be more than just downloading a dry white paper. You’ve got to find a way to build a relationship, which is crucial since so much of B2B marketing involves a lengthy and complex sales cycle. E-mail in general, and e-mail newsletters (which we like to call “micro magazines”) in particular are great relationship tools…as long as they aren’t abused. Additionally, you need to recognize that younger professionals seek out and process information differently from older, senior executives. They’re more visual and eagerly watch video. They want relevant “grab and go” knowledge that clues them in to why your product or service will benefit them, not a tidy explanation of what it is. You’re not selling to one person or a group within one department. You’re selling to a whole “ecosystem of influence” comprised of one or two people from many departments or organizations. Can you give us an example of ‘ecosystem of influence’? Sure. Let’s say a prospect company goes to your Web site. Usually someone on the research team provides some information in order to download a white paper. They’re not just downloading the white paper for themselves, but sharing, forwarding it around to other purchase influencers and decision-makers at their organization. You don’t know who the others are, but you need to be communicating and engaging with them. Too often B2B marketers are dependent on the researcher to spread the word on their behalf. Moreover, the researcher is gathering and controlling competitive information. The reality is that B2B marketers should be part of that process. It’s my view that B2B marketers should consider themselves not only as providers of information, but publishers of information that people subscribe to…and then integrate with all the other sources they subscribe to or draw upon. Web sites, especially on the B2B side, will also have to stop behaving as company or brand silos. The future is making your Web site interoperable. By that I mean it has to be complementary with other like-minded Web sites so visitors (i.e. your prospects) can seamlessly gather information (white papers, news feeds, product releases, demos) from each and synthesize it for evaluation. Where is the advertising industry today and where do you think it is going? The advertising industry is crossing an inflection point, passing from the conventional mass media ‘interrupt and repeat’ model to a family of advertising models centered on relevance and engagement. Online advertising is about 10-years old and it’s driving three new models that seem to be bubbling to the surface — On Demand, Engagement and Advertising as a service. Although they differ, the models share similarities: A focus on dynamic relationships among brands and consumers; penetrating insights into consumers through data on behavior and preferences; and support from technology. How are these three new advertising models impacting marketers and consumers? These new models provide marketers with flexibility and a range of options they can apply as consumers and situations warrant. Now is the time for brands to experiment with a model, or combinations of models, that suit the brand best. One conclusion is certain: We will never see another 75-year period of advertising centered on a single model and four dominant media. Online Advertising Playbook seems to focus a great deal on measurement True. But, the irony of online is that even though it’s so accessible, measurement, really useful measurement, is actually pretty hard. But once you figure it out, it’s pretty compelling. Can you give an example? Sure. Do you know what the strongest correlation is between marketing and business performance? It’s cash flow. (I imagine CFOs among your readers suddenly perked up). So what are the metrics that really matter?It’s not just about counting clicks…that’s a McMetric. The more important question is: “What’s the click or other user interaction that leads to that all-important conversion event, and then the series of events that keep a customer engaged with a brand.” Predictions Ten years out of the box, online still accounts for only five to six percent of media budgets in the U.S., but that’s not commensurate with the amount of time consumers (including B2B executives) spend with the medium. For instance, a recent Middletown Media study found that TV ranks as the Number One media in terms of time spent with it, but computer-related activities (about 50% of TV) are now Number Two and no other media is even close. Sooner or later media spending will catch up with media consumption patterns. Outside the U.S., digital advertising spending is approaching 20 percent in countries like Japan, Korea and the U.K. Just look at the younger generation to see the future. They’re “digital natives” who are not only very comfortable with all forms of digital communication and interaction, but they’re highly adept at using all these forms simultaneously — TV, cell phone, iPod, PC altogether. This is very different from most baby boomers and Gen Xers who have adopted digital technology but do not have either the fluency or the habits of Gen Yers and younger people. I was struck by this comment from an MBA student: “My dad, an IT guy, understands digital very well. But he doesn’t use it like I do. In my apartment I have my phone, TV and computer going all at the same time and I’m using them at the same time.” The younger people are the “divided-attention” generation and they’re quite challenging for marketers to reach…They won’t tolerate having marketing messages pushed at them. They want to control the relationship. They want to know what’s my relationship to the brand and even in B2B, what does that brand give me back in terms of relationship, learning, service. Beyond the Click B2B marketers need to think well beyond the click. The click sets an expectation but is really just a conveyance or form of transportation to what should be a compelling brand experience that offers control, engagement and service. ---------------------- Online Advertising Playbook is available on Amazon.com. Click here to order. Visit The Advertising Research Foundation for membership information and other resources. Steve Rappaport may be reached at steve@thearf.org. |
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