Rich Clark Marketing

Opinions from Rich Clark one of the UK's leading Marketing Professionals


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Affiliate Marketing (for Merchants) – Part 1

Affiliate Marketing (For the Merchant)- Part 1

Long gone are the days when affiliates used to solely be one man in his bedroom, hacking about with some clever code.  In addition most merchants are more savvy to the opportunities affiliates can present when working in partnership.  Gone are the easy pickings of brand bidding and in the main, gone are the days when merchants used to treat affiliates as a second-class channel.

Affiliate Marketing is one of the most established online marketing channels.  Affiliation can provide everything from volume of clicks or UVs, e-Mail address collection and most commonly sales or leads.  Part One of my guide is centred around the more novice internet marketing professional, call it a beginners guide if you like.

Working out the commercials

The main benefit the channel provides merchants is a manageable approach to customers where costs can easily be controlled.  Merchants should know their margins and in turn know how much margin they can afford to give in terms of a commission (commission being the operative word, more later).  If the programme operates on a CPA basis the maths are straightforward.  If my product makes retails at £100 and I make 20% margin, my profit is £20.  I then know that if I want a 4:1 return on my spend my CPA would be set at £5.  Simple.  Remember if you are using an affiliate network you need to account for their over-ride (standard industry practice is 30% of commission.  In this case it would be an additional £1.50 (which already negatively effects your ROI.

Tip 1 – When working out your CPA to hit ROI targets, build in any network over-rides or additional costs to understand a true Net CPA and ROI.

Tip 2 – The networks will hate me for saying this, but the over-ride can normally be negotiated (if you are a merchant of either perceived value or revenue potential).

Choosing a network or going direct?

This is an age old debate within the sector.  The majority of merchants use an affiliate agency such as Affiliate Window or Commission Junction.  The benefits of using a network (even if you have an internal affiliate team) are numerous.  The major ones from my experience are the fact that payment to affiliates and expensive programme admin are taken care of.  Affiliates are a networks business and as such the platforms are built to take into account affiliate needs (much cheaper than merchants doing it from scratch).  Finally, the fact that the networks know all the affiliates and should be able to guide you on who to partner with.  They can also do some of the lengthy selling-in and negotiation with both established and up and coming affiliates, that direct merchants may not be aware of.

But what about Amazon?  Yes Amazon are one of the key success stories in terms of going direct.  However their entire model (as a vanilla pureplay) meant that they could set the system up from scratch.  The prices and range are so broad that affiliates fight to work with Amazon, rather than the opposite way round with a majority of merchants.

The main benefit of the Amazon approach is that they know their categories better than any network ever can.  They also know their stock and pricing in real-time rather than relying on a third party to update feeds.  They can speak passionately about promotions and campaigns and the affiliates hear it directly.

Tip 3 – Take the best of both approaches. Use the networks to manage and administer the account but work jointly on relationships with key affiliates

That leads me neatly on to the point I told you to keep an eye out for in the earlier post.

Commission

Affiliates will always want more as this is their bread and butter.  Merchants will inevitably want to pay less as it hits their margins.

My view is that if you treat the outlay as commission you should hit a fair level.  I have always considered my top revenue driving affiliates as a virtual sales force.  They are my sales people out on the road that can get people’s attention and drive them to my virtual shop window.

Like a physical sales force, this virtual salesforce will be motivated by money.  However the virtual sales force may be even more motivated by the commission they can earn.  This isn’t due to greed but related to the fact that the majority of this virtual salesforce has to place their own investment in.  That may be monetary through Google adwords or through effort and opportunity cost through the likes of SEO or social media.

Whilst your virtual sales force will be reactive to the commission structures you put in place and any additional incentives, the majority are also pragmatic enough to realise that you can only reach a certain level, before it becomes impossible for you to maintain.

As with physical sales forces, incentives can prove extremely motivational.  A push to go the extra mile.  Whether that is by taking advantage of a sponsorship property you have and offering tickets.  Inviting affiliates to attend a bespoke event or cold hard cash.  All can influence an affiliate.  However with the more experiential incentives, you shouldn’t necessarily expect a parallel increase in revenue.

Tip 4 – Treat your affiliates as a virtual sales force. Reward them and the commission negotiations are normally easier and fairer all round.

Types of affiliates

As I said in the intro of the post, gone are the days of one man in his bedroom trying to earn a quick buck.  Nowadays, affiliates are some of the brightest online marketers or smartest developers.  You must define your strategy and decide what affiliates you should work with and to what level and on what basis.  Below are a few examples of different types of affiliates

Cashback – this is possibly the biggest area of growth within affiliate marketing.  Sometimes thought of as the pariah within the affiliate community, the growth is in part due to the economic climate.  Essentially, these affiliates pass on all or part of the commission you give them, directly back to the customer.  Sites such as Quidco and TopCashBack fit into this category

Loyalty – the name is slightly misleading in terms of the loyalty is normally with the affiliate and little loyalty will be passed on to the merchant.  Essentially working in the same way as Cashback, except rather than cold hard cash being placed into a customers bank account, points are awarded.  Examples of these are Nectar and Airmiles.

Voucher Codes – if Cashback sites are though of by some affiliates as pariahs, then voucher codes are seen as bandits.  Essentially these sites provide details of all the codes available, people click on a link to reveal the code and generally a cookie is placed on the customer’s PC, meaning that affiliate gets the commission.  Its at this point I feel compelled to say that these views are not my own.  Both Cashback and voucher code sites perform specific roles within a merchants mix.  Whilst I accept some cannibalisation will take place, there are a number of customers that wouldn’t buy without this bargain mechanic.  Examples of this type of affiliate include MyVoucherCodes and VoucherCodes.co.uk

PPC – there are some affiliates that specialise in PPC (sponsored terms in the search engines).  PPC can be a grey area in affiliates and you need to have strict control over who can bid and on what terms.  If you don’t have a PPC agency or any internal expertise, these affiliates can provide great top-up resource to your own PPC activity

Tip 5 – Understand your PPC strategy and place clear T&Cs in your programme on PPC restrictions, such as brand bidding, using your brand name in the URL, direct linking etc

Content – this is potentially where affiliates started out.  People generally with a personally interest, creating great content that they just want people to read.  These sites then realised that they could potentially make money from their sites and started selling advertising.  This could be anything from one person with their site on a topic of personal interest such as making orange food, to more established content sites such as The Sun.  Although blogs are rightly considered social media, I would place them in this section.  Nowadays blogs seem to be more geared towards providing useful content and information as opposed to the web log (diary) approach that was intended.

Price Comparison – another type of affiliate that isn’t normally relevant to all merchants is Price Comparison.  The standard of these types of sites are varied.  Some use bespoke software that allows them to scrape the web for up to date prices and deals.  The others (more akin to traditional price comparison engines) take a feed once a day and produce pricing information.  Networks have developed increasingly sophisticated tools to simplify the process for affiliates to add Price Comparison functionality to their content (the best example being Affiliate Window’s, Shop Window).  There are some broad price comparison engines available through affiliate networks, however the more successful ones for merchants tend to be the more focussed engines such as Whiteboxdeals, a Price Comparison engine specialising in large domestic appliances such as washing machines and ovens.

Social Media – with the low cost of entry of social media and the advances in affiliate technology from networks means a new wave of affiliates are emerging.  These are the ones that have embraced the newer technologies such as Twitter and Facebook.  Whilst all the research indicates that recommendation by a friend, either in person or online, is the most powerful tool, please be aware.  Some people using social media tools are not just making recommendations to their network but creating brand accounts.  This is especially true in Twitter where minimal dev work is needed.  That being said, there are a number of affiliates that have made social media work and come up with creative solutions or use an established network.

Tip 6 – If you consider using Social Media affiliates, ensure your T&Cs are very clear in terms of people using your brand name.  Also, vet applications very carefully.  Some people end up spamming contacts, which reflects badly on the merchant.

OK, so that’s it for Part 1.  In part 2 I get a bit more practical, rather than just an introduction.  I will look at what types of affiliates different sectors/merchants could be best placed using.  I will look at which affiliates and approaches you could use for different stages of a business of product lifecycle and I will also review the methods of building relationships and rapport with affiliates either directly or through the networks.  I may even explore the age-old debate about single Vs multiple network.  If there is anything else you would like me to cover leave me a comment here.

Finally, here is a recap of the tips

Tip 1 – Build in all costs to determine CPA (inc network over-ride)

Tip 2 – Negotiate your network over-ride

Tip 3 – Take a collaborative approach with your network to managing affiliate relationships

Tip 4 – Treat your affiliates as a virtual sales force

Tip 5 – Understand your own PPC strategy and reflect this in your PPC T&Cs

Tip 6 – Have clear T&Cs on affiliate use of Social Media and tightly manage applications

If there is anything else you would like me to cover leave me a comment here.

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Do us a Flavour

Walkers – Do us a flavour

So in the first of the case studies to illustrate my 5 F’s theory, comes Walkers and “Do us a flavour”.

The Context

Walkers has always enjoyed a special closeness with the British public.  A relationship that has brought them huge commercial success and an almost dominant position in the crisp market.  Unlike most dominant players in their sector, there seems relatively little animosity towards Walkers.

Part of this has been down to product development but this significant position has also been achieved through great marketing.  Picking up on the status of national hero Gary Lineker was a masterstroke, and it is a relationship that still lives on today.  Walkers are responsible for creating some magic moments with some of the in-demand public profiles.  The classic example of this was when Walkers created a football execution involving Gary Lineker and a tearful Gazza (Paul Gascoigne).  Other celebrities such as Charlotte Church and more recently Cat Deeley have appeared.

Rather than develop the same theme and just extend it, Walkers created a real point of difference.

The campaign

In 2008, Walkers “Do us a flavour” campaign moved their advertising on by taking participation to a whole new level.  Capturing the mass love of social media and User-Generated-Content (UGC), Walkers created a campaign that involved the public and created a genuine national debate.  The beauty of the campaign was that it didn’t live in one space or develop through one-channel it almost became part of the British way of life.  The campaign obviously lived online.  However it also crossed TV ads, in-store, outdoor, radio,  mobile and even IVR (Interactive Voice Response).

The fact that the public suggested over 1.2m flavours (that equates to 2% of the UK population submitting a flavour) and over 1m votes on the final shortlist, proves what a storm the campaign created.

The campaign essentially became the first large-scale initiative to put the British public in control.  The election process was clear and straightforward.  Crowd sourcing at its best.  In hindsight this was a masterstroke as the campaign was also live when realtiy TV was at its peak.  All shows that centre on the population (viewers) being in control.

On top of all these factors, Walkers didn’t throw away the heritage and familiarity of its previous campaigns, Gary Lineker remained a focal point of the campaign.

So why did it work?

Well, partly down to the fact that Walkers spent a hell of a lot of cash on the campaign.  However, you could argue that this was no more than they would have spent on a standard campaign.  So Fortune was a factor in terms of spend.

For me the F’s that really made the difference were Fame.  The chance that “normal” people could get a massive amount of coverage regardless of whether they won.  Their creations, designs or concepts would reach hundreds of thousands of people, very few opportunities like that exist, unless you have an immense Talent (then maybe you could get on X-Factor).  The second success factor was Fortune (not the campaign spend).  The winner secured a huge £50,000 prize.  If that wasn’t enough, they also got 1% share of the revenue for all future sales, in theory, thats the pension sorted.

In my view the combination of social media nuances, putting the people in control and a massive fortune to the winner was a sure fire hit.  Yes the campaign spend did help.

And the winner is…

I suppose after waxing lyrical about the campaign it is only fair to reference the winning flavour – its was of course – Builder’s Breakfast.


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The Internet Landscape

NetImperative.com published a number of latest stats on internet usage this week.  But what does it all mean?

Rise and Fall of the Internet

So you probably thought that everybody that wanted to use the internet at home probably already has access.  Well according to the latest numbers from Nielsen (featured on NetImperative) there is still room for growth in major markets.  The US and UK saw significant growth, 10.4% and 3.1% respectively.    There was also growth of over 1% in Australia, Italy and Germany with more modest growths in Japan and Brazil.  Most startling isn’t the fact that some markets have continued to grow, more that some major markets have declined, including France, Spain iPhone 3GSand Switzerland. 

Whilst I don’t think the numbers should be read in pure black and white terms, it does demonstrate the issues of using data on such a small time frame and not looking at longer term trends.  The data was based only on May 09 Vs June 09.  If you were to read this on face value, it would seem USA is leading the way on the internet whilst some mainland European counties are turning their backs on the Internet, which obviously isn’t true.  I am not 100% certain but I can’t imagine the numbers Nielsen uses takes into account convergance and the growing move towards accessing the internet on mobile devices such as the Apple iPhone or the HTC Google phone.  This is also set to continue with newer style netbooks with mobile broadband capability built-in.

Top Social Networking Channels

So Facebook are the kings of social networking.  That is the widely held view and judging from the Hitwise numbers featured in NetImperative show that it represents 47% of all UK visits to social networking sites.  Interestingly Bebo has twice the traffic of Twitter and MySpace.  Another dark horseSocial Media Pic that many people completely ignore is Yahoo!Answers with 1.19% of all traffic. 

Whilst these numbers prove that Facebook cannot be ignored by marketeers, it does demonstrate the next tier isn’t as obvious and clear cut as many think.  All Marketeers should look at their target segments and choose which channel best suits their needs.  They should also consider what they have to offer each network and create firm reasons for being involved.  Despite Bebo‘s claims within their advertising sales packages, I doubt they are as big in the 25+ market as they would lead you to believe.  You must therefore determine if you have anything to offer a younger audience and if you brand belongs.

Top UK Online Retailers

Once again on NetImperative they list the Top 50 Online Retailers within the UK (listed at the foot of this post).  The list published in conjunction with IMRG and using Hitwise data is based purely on visits.   The list is fine as a benchmark but to label its output Top 50 Online retailers is somewhat over the top.  The numbers fail to recognise usability, conversion, online SoV or the obvious benchmark of turnover and profit.  If all these factors were incorporated, I am sure there would be some differing positions and maybe even some change of faces in the Top 50.

Withstanding the rationale of creating the list, the top 10 is made up predominantly of names you would consider when talking about Top 10.  Amazon (1st and 5th), Argos, Play.com, Next, Marks & Spencer, Tesco, Thomson, Expedia and EasyJet.  OK so the final few wouldn’t be in my list of Top 10 online retailers.  Despite this list IMRG claim a massive rise in spend online, largely driven by the fashion sector (none of whom really appear at the top of the list, with the exception of Next and M&S)

The most interesting element of the top 10 is that all are recognised brands.   This shows that Internet Marketeers also need to recognise the importance of brand and cannot base every business decision purely on immediate ROI or DM metrics.

Top 50 Online Retailers List  – August 2009

Source: NetImperative

1 Amazon UK http://www.amazon.co.uk/
2 Argos http://www.argos.co.uk/
3 Play.com http://www.play.com/
4 Next http://www.next.co.uk/
5 Amazon.com http://www.amazon.com/
6 Marks & Spencer http://www.marksandspencer.com/
7 Tesco.com http://www.tesco.com/
8 Thomson Holidays http://www.thomson.co.uk/
9 Expedia.co.uk http://www.expedia.co.uk/
10 easyJet http://www.easyjet.co.uk/
11 Apple Computer http://www.apple.com/
12 Ryanair http://www.ryanair.com/
13 ASOS http://www.asos.com/
14 Tesco Direct http://www.direct.tesco.com/
15 lastminute.com http://www.lastminute.com/
16 Thomas Cook http://www.thomascook.com/
17 B&Q http://www.diy.com/
18 John Lewis http://www.johnlewis.com/
19 Debenhams http://www.debenhams.com/
20 Littlewoods http://www.littlewoods.com/
21 HMV.co.uk http://www.hmv.co.uk/
22 River Island http://www.riverisland.com/
23 Currys http://www.currys.co.uk/
24 Ticketmaster UK http://www.ticketmaster.co.uk/
25 Topshop http://www.topshop.co.uk/
26 Odeon Cinemas http://www.odeon.co.uk/
27 New Look http://www.newlook.co.uk/
28 LOVEFiLM http://www.lovefilm.com/
29 O2 Shop http://www.shop.o2.co.uk/
30 Cineworld Cinemas http://www.cineworld.co.uk/
31 TravelRepublic.co.uk http://www.travelrepublic.co.uk/
32 Comet UK http://www.comet.co.uk/
33 Vue Entertainment http://www.myvue.com/
34 The TrainLine http://www.thetrainline.com/
35 British Airways http://www.britishairways.com/
36 ASDA http://www.asda.co.uk/
37 First Choice http://www.firstchoice.co.uk/
38 Dell EMEA http://www.euro.dell.com/
39 Halfords http://www.halfords.com/
40 Screwfix Direct http://www.screwfix.com/
41 PC World http://www.pcworld.co.uk/
42 GAME http://www.shop.game.net/
43 IKEA http://www.ikea.com/
44 Travelodge UK http://www.travelodge.co.uk/
45 Homebase http://www.homebase.co.uk/
46 Sainsbury’s http://www.sainsburys.com/
47 Boots http://www.boots.com/
48 ASDA Direct http://direct.asda.com
49 The Orange Shop http://www.shop.orange.co.uk/
50 QVCUK.com http://www.qvcuk.com/


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Web Analytics – how can you utilise to create improvement?

Web Analytics

In today’s economy most organisations have a website.  Most organisations invest in the design of the site.  A high proportion invest in usability.  A number of organisations invest in additional content.  A good proportion of organisations invest in web analytics, however a good proportion don’t.

Of the organisations that do invest a number don’t really utilise the full benefit.  So those that don’t realise the full potential of web analytics or don’t use them at all are really missing the real advantage of the web.  Most people love the internet because it is ‘so transparent’ or ‘it is the most measurable channel’.  However without fully utilising web analytics those benefits cannot be truly reaslised.

How do you make it work?

Most organisations completely fail to realise the full potential of their investment because they invest in the tools, however don’t invest in the resources needed to make the tools work.

The main building block to making web analytics truly work is to invest in personnel that can both operate the tools and as importantly understand the outputs, analyse and put plans into action to improve, based on the results.

Companies also need to recognise what they want from web analytics.  It may be that all you need to know are basic traffic numbers, or sales per visits.  These parameters should be set and where possible, dashboards shWeb Analyticsould be set to ensure consistency of output and easily comparable data.  In addition, this should create efficiencies within business decision-making processes.

What should you use Web Analytics to achieve?

The obvious areas are measure, analyse and optimise on your KPIs.  Simple, however many organisations fail on these basic central points.

A key reason for adopting a thorough approach to web analytics is to input into your optimisation strategy.  Let the data identify key issues that are impacting on your conversion in both a positive and negative way.

Web analytics should also allow you to track the sources of your traffic.  You should be able to track all your sources of traffic, de-dupe and prove what channels are driving traffic, sales and ultimately conversion.  With the two elements combined you should be able to optimise both your site (layout, call to action, customer journey) and your media/creative mix.

Going back to the original point, if you clearly define your objectives and KPIs, web analytics can really

The continuous improvement process

The continuous improvement process sometimes termed kaizen (Japanese for improvement) is what should underpin any web analytics implementation or strategy.  The basis of this concept is actionable measurement.  You need to do more than just measure results, feed the output back in to everything you do.  Change both the elements that are measured and review everything it impacts.  Even though you may be identifying a away to optimise your call to action buttons on your website, it may be down to the language – this in theory could influence how retail staff interact.

top5Top 5 Key considerations

1 Delve into your analytics and get past the top layer

2 Mirror the output with the objectives

3 Once the basics are cracked, undertake more complex initiatives such as multi-variate testing, which allows you to make dynamic changes to your site to speed your optimisation cycle

4 Can areas of improvement being made on the website improve other areas of the business?

5. Don’t just collect data, act upon it, optimise and review

Cost Vs Benefit

Remember, web analytics doesn’t have to be expensive.  You can get complex systems such as Omniture, that can interrogate all levels of detail and integrate into all your business systems.  However if your requirements aren’t as complex, your implementation timescales are shorter or quite simply you don’t have those levels of budget, you can get a very rich layer of information from free tools such as Google Analytics.  Whatever happens, don’t let cost be a barrier to implementing web analytics.  The benefits of a small investment will far outweigh any costs, as long as you act on what you are being shown.


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Football Sponsorship in the changing climate

Is the backdrop for sponsorship changing?

There is a lot of talk in both the marketing and sports arenas that the climate for sponsorship is changing.  Sponsorship in football isn’t new.  During the 1920s Lillywhites negotiated exclusive rights to publish FA fixture lists.  In the 30s the top players of the time such as Sir Stanley Matthews, were seen to endorse and advertise a range of products from cigarettes to mens cosmetics.  So David Beckham was beaten in his endorsements by some 70 years.david beckham england

In the 70s football was in the midst of a mini economic crisis, crowds were falling and players’ wages increasing.  The Football League decided to create some (short-lived) tournaments such as the Texaco Cup and the Watney Cup (won by Bristol Rovers).  However it was the Football League Cup that secured the first major sponsorship deal in 1982, the Milk Cup was formed.  Most of the major tournaments have since secured sponsorship deals, either associate or title sponsorship.

The combined factors of the economic downturn and the rise of online for more than just purely acquisitional methods of promoting your brand, has helped to create this perception.  Examples of the changing commercial climate in football were cited, when the likes of Setanta failed to make their rights to major football pay.  The collapse of Setanta in the UK despite rights to Premier League football and Scottish Premiership and several other high profile sporting occassions could be perceived as the end of the commercial euphoria that has changed the English game.

Never has the English game been under this kinf of pressure since ITV Digital collapse put a number of English clubs at risk.  The increase of clubs entering administration in the game at the lower levels also adds fuel to the fire.  The current decline of the pound against  the Euro (combined with 50% tax rate) is also resulting in some top players such as Ronaldo moving abroad or considering the move.

All doom and gloom?

However, there is still an influx of cash from (in the main) overseas backers, meaning football at all levels is still getting investment.  This isn’t just top flight any more, the likes of Southampton and Notts County are also being pushed.  The fact that Setanta had their rights replaced so promptly by the likes of ESPN also helped ease some of the concerns.

There are also some key sponsorship deals that have been signed recently including Chelsea‘s deal with Samsung.

A new approach

Obviously it isn’t always possible to rely on investment from overseas billionaires.  For every Chelsea and Abrahmovic there are 50 not so fortunate clubs.  So how do they survive?  Well frankly, some don’t, however others have discovered more creative approaches to their sponsorship.

Some of the clubs have benefited from giving away naming rights.  For example when Arsenal moved from their long-term Highbury home to their new stadium, Emirates Airways secured a reported 10 year muli-million pound deal to create the Emirates Stadium.   A number of traditional supporters think this is a step too far, however most accept that this is the current trend and the only way to stay competitive.  So stadiums have been sponsored, shirts don logos, individual players have become commodities, the only thing left is the club itself, steeped in tradition and part of the community.  Not for too long.  Whilst accepted overseas with the likes of Eindhoven being name PSV (Philips) and Salzburg (FC Red Bull Salzburg) bringing corporate life to the centre of their existence.  Now financially troubled Stirling Albion are looking to go the same route and offer naming rights on a five year deal.  Whilst it will undoubtedly annoy the real traditional football followers it is better to keep the club going.

Whilst other lower league clubs continue to grapple with the current climate not all are going down the extreme route of auctioning their identity.  Bristol Rovers took the creative route to gain revenue by raffling its shirt sponsorship.  The club claim to have come up with the idea as they feared their sponsorship revenue would decrease if they managed to secure one at all.  The raffle is estimated to have generated double the revenue that they would have expected for sponsorship in a growing economy.  It also created a lot of buzz around the community and generated some good PR.

Whatever happens to the economy overall, the British game will continue and will without a shadow of doubt continue to generate revenue, either from wealthy investors, major sponsorship tie-ups or the inventive methods shown by smaller clubs such as Stirling Albion and Bristol Rovers.

What about the sponsors?

Never has the need for sponsors to connect to the recipients of their sponsorships been so great.  With the growing consumpion of alternative media, people are now driving the news and owning the media agenda.  With the likes of Twitter or Facebook, users can endorse or undemine a sponsorship within mintues of its announcement or perhaps more importantly within minutes of being exposed to it.

Big Brother LogoAny organisation that sponsors any property, whether it is a football club, event or a broadcast property such as Big Brother, needs to have a reason to be associated.  When I was at Nationwide we developed a whole campaign that enveloped our sponsorship properties (primarily the England Football Team).  Our “Sponsored by You” campaign put all the perks of being a corporate sponsor back in the hands of our members and the average fan.  Members of Nationwide could win VIP tickets to see England, get a player to a local school or get signed merchandise.  It also encourage winners to post videos or photos of their experience.  This kind of approach allows the organisation a place within the recipients passion, and makes them feel welcomed. 

Sponsors need to move away from thinking about sponsorships as merely a means to get their name out to a mass audience.  They really need to make them work or face a waste of marketing spend that could have been utilised to a far greater degree elsewhere.


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Teenagers Don’t Regularly Read Newspapers

Morgan Stanley Revelation

Well it seems to take a 15 year old boy to tell the corporate world the blinking obvious.  Matthew Robson a 15 year old school boy had a work experience stint at Morgan Stanley.  As part of his spell there he was asked to write a research paper on teens media consumption.

Now this isn’t a dig at Matthew Robson, or particularly at Morgan Stanley, but does it demonstrate a distinct lack of awareness at large corporations about online and other emerging media channels.  Matthew probably didn’t expect to become when he wrote a summary of what he and his mates thought.  Yet it seems his work hit the tables of analysts, investors and CEOs.

So what inspiration did Matthew afford to his six-figure salaried friends?  Well here are a few items:

Teens prefer streaming sites (e.g. Napster and Spotify) to regular Radio – as, wait for it, they don’t like adverts

Teens prefer Facebook to Twitter as it is seen as a better way to stay in touch – (apparently Stephen Fry isn’t cool for teens)

Teens also watch TV (a lot) but via internet rather than TV, so they can watch what they want when they want on channels such as iPlayer

Teens don’t buy newspapers, or indeed don’t buy CDs

Teens also find online advertising pointless

Well as I said, this is not against Matthew, I just think the stating of the blooming obvious really illustrates a lack of corporate understanding.  This lack of understanding is both lack of education of online and also most are so far out of touch with ‘youth’  the obvious becomes a breakthrough.  I just hope Matthew’s efforts opens the eyes of some corporations. 

I have thought of some other bright ideas that Morgan Stanley can get excited about:

Top 5 ideas

1. School boys like football and can often be found to wear replica football shirts

2. Very young children struggle to eat solid food, they prefer liquidised food which is easier to swallow

3. Kids enjoy sending text messages on their mobile phones

4. Children play games on their consoles

5. Girls and boys are different, as a result they should be treated differently when targetting products at them

Matthew is also quoted as saying that he is now considering a career in investment banking.  Matthew, I am not surprised, good luck.


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Missing Blog Posts

So as some regular readers of my blog will have noticed I haven’t posted any articles recently.  Firstly I would like to apologise, this isn’t because I have lost interest but due to the fact that I have recently changed roles and endure a daily 2 hour commute each way.

So what am I doing now?

Having made my career progress at DSGi taking over all Online Marketing, Design and Content for Currys, Dixons and PC World,  I dBest Buy Logoecided it was time to seek a new challenge.  Thankfully plenty of offers were on the table and I was lucky enough to choose from some fantastic opportunities.   I decided to opt for remaining in Consumer Electronics retailing but try my hand at delivering my experience within a start-up.  The opportunity at Best Buy (as reported in NMA) allowed me to set up a department and functions from scratch.

Carphone Warehouse Store Front

Whilst Best Buy aren’t your traditional start-up (part of the World’s largest Consumer Electronics Retailer) it does mean you get involved in absolutely everything.  Formulating strategy, developing plans and ensuring buy-out throughout the entire organisation.   Add in the Carphone Warehouse (who I am supprting on a consultancy basis)  element and you get an organisation of amazing scale and opportunity.

 

 

Back to tradition

In addition to truly formulating the online marketing approach I am also, driving the overall brand and comms strategy, everything from brand architecture and positioning through to developing a fully integrated comms strategy.  All this in conjunction with the Head of Marcomms, allowing us to really plan from a joined up foundation from day one.  A really refreshing approach and one that has to be the way forward.  The main obstacle blocking generally preventing this from happenning is the fact that many online marketers don’t have experience in branding or ATL comms.  Luckily my experience at both Reuters and Nationwide is helping me lead and define the approach

More to come

Whilst I can’t promise to be as active as I once was on this blog, I will start to try and produce more articles again.  Thanks to everybody for reading and thanks for the positive and constructive feedback both through the comments on the blog and via e-mail.  Also look out for updates on Best Buy as we get closer to our 2010 UK launch.