Making The Social Network Your Brand’s Network.

September 28, 2010

Hollywood’s take on Facebook promises to be personal, but smart businesses should consider the myriad of opportunities emerging.

With more than 500 million users, Facebook offers brands countless ways to reach existing and new customers. Are you taking advantage?

I still chuckle when I think about it. It was summer of 2005, and while on vacation, I made some new friends a few years younger than me. When it came time to say goodbye, they asked if I used a then still relatively new social networking site called Facebook. My response: “Isn’t that for college kids?” Launched in February 2004, The Facebook (yes, that was the original name) began its impressive rise from dorm-room fodder to the world’s largest social network (Facebook has an estimated 500 million users worldwide) when its Harvard founders opened the site’s virtual doors to collegians throughout the Boston-area, the Ivy League and at Stanford University. Global domination soon followed. Today, not only do I use Facebook to stay in touch with everyone from those friends to my mom’s friends and more, I’ve also completely abandoned other early social networking sites (R.I.P. Friendster and MySpace) in favor of The Social Network. That’s the title of the Aaron Sorkin-written, David Fincher-directed blockbuster that comes out Friday, a movie that has people — grown-ups — talking not just about the seemingly controversial birth of Facebook but also the importance and cultural relevance of the medium. Trying to have a conversation without using the word “Facebook” is like trying to avoid the Kardashian sisters in the tabloids. While we’ve talked about the opportunities for and potential pitfalls of professionals using social media, we’ve yet to discuss how smart brands and businesses are making the ultimate consumer network work for them. Several — from Dairy Queen to Delta Airlines, Oreo to Target, Sears to Wasa — are blazing trails online in creativity and convenience.

Maybe I’m just blogging out loud here, but it seems like brands and businesses simply using Facebook is not enough. Smart companies need to take their Facebook involvement one-step further and actively engage consumers in relevant and useful ways. And don’t forget to keep it fun.

According to new research from Atlanta-based social media marketing agency Vitrue, Facebook posts incorporating images, be they coupons or photos, engage more users than those using only text and/or video. The study claims “image posts earn 22 percent more engagement than video posts and 54 percent more than text-only posts, while video was 27 percent more engaging than text.” Moreover, posts made early in the day and on Wednesdays garner the most attention. Interactive games, giveaways and promotions also score big. A Vertical Marketing coworker recently shared the Wasa Facebook fan page, which features the endlessly entertaining “Create-a-Snack” interactive tool and other elements designed around the theme of “Snackspiration.” Equally engaging is Dairy Queen’s fan page, which has earned nearly 1.7 million fans with promotions for free Blizzards and more. And speaking of sweets, Oreo has outdone itself in Facebook promos, with over 10 million fans and more interactive “stuff” than the brand’s Double Stuf cookies. Taking a step toward more convenient airline travel, Delta Airlines began selling tickets via its Facebook page in August. But don’t let that stop you from entering KAYAK’s current giveaway, which gives users the chance to fly for free. The travel search engine and booking site’s pitch: “And you thought Facebook was only good for embarrassing photos.” Clearly, it’s not. It’s good for business, too. Target recently started selling Facebook gift cards, similar to iTunes gift cards, which can be spent on applications, social games and virtual goods associated with those games. Vertical Marketing Network had success in using Facebook as a cross promoting platform; as a tie-in with their James Hardie campaign, the agency drove traffic from the brand’s Facebook page to its YouTube channel and helped promote a related video contest. Retail giant Sears is currently running a similarly great video contest — clearly piggy-backing on the aforementioned release of The Social Network. Visitors to the company’s Facebook page are prompted: “What would you do with one billion points?” Unlike the “points” of pre-paid Facebook gift cards, the Sears points up for grabs are very real. The winner will receive 500 million points (sound familiar?), or $500,000, and another 500 million points will go to charity. Not a bad way to drum up fans…or business.

But perhaps the best business use of Facebook — and a great way for businesses to get involved on the network — comes from the company itself. In mid-August, Facebook launched its Places feature, a move to not only compete with other location-based social networking sites such as Foursquare and Gowalla, but to partner with them. Facebook’s Places platform has what’s called an application programming interface, or API for short, which allows users of sites such as Booyah, Foursquare, Gowalla, Twitter and Yelp to “check-in” and/or interact via Facebook. It’s a brilliant move on Facebook’s part, essentially making itself the “one-stop-shopping” site of social networking and online interaction. The fact that Facebook is engaging businesses to help is no surprise: “Places creates a presence for your business’s physical store locations…When your customer checks into your Place, these check-in stories can generate powerful, organic impressions in friends’ News Feeds, extending your brand’s reach to new customers.”

With more than 1 million Web sites integrated with the Facebook platform, including two-thirds of comScore’s U.S. Top 100 Web sites and half of comScore’s Global Top 100 Web sites, smart businesses should consider their place in this fast-growing social marketplace. Now that’s a conversation worth having.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: luc legay

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Posted by JJ Nelson

Listomania and Other Could-be Words.

September 7, 2010

Have you ever wanted to coin your own phrase? We have, too.

Etymology is fascinating, no matter the context. In the fast-changing world of marketing, new words and phrases -- be they real or inspired -- reflect the nature of the business and our pursuit of the NBT (Next Big Thing).

Every year, as summer wanes and back-to-school sales tempt my wallet, I can’t help but feel nostalgic for reading, writing and arithmetic (in that order, be assured). More than any other season, I associate the school days of fall with new ideas. It’s no wonder, then, that when Oxford University Press announced a few weeks ago some 2,000 words being added to the latest edition of its New Oxford American Dictionary, I perked up with interest. And then, I laughed out loud. Of course, I know what a “bromance” is, and yes, I’ve used the term to poke fun at male friends (as well as a certain collection of Hollywood actors who apparently were placed on earth for each other only). But I’ve always thought of “bromance” as a non-word, the kind your computer attempts to correct the second you type it (just now, mine changed “bromance” to the not even close “bromine”). Now, bromance has been vindicated, as have former non-words such as chillax, frienemy, interweb, turducken, vuvuzela and many others, which got me thinking: if everyday slang can weasel its way into the common vernacular, can certain brands and businesses develop their own lexicon? If given the chance, what non-words would you have made real? “Funner,” anyone?

Maybe I’m just blogging out loud here, but it seems as if there are non-words used within the marketing industry that deserve real-word status. A quick poll of my colleagues at Vertical Marketing Network turned up a slew of examples, and it also sparked some exciting conversation.

Two existing terms from within the marketing industry are “advertorial” and “mobile marketing.” Advertorial is a great industry term, a portmanteau of “advertising” and “editorial.” Mobile marketing is a little less obvious in concept, since no, wheels are not involved. Rather, it pertains to marketing to consumers via mobile devices such as Smartphones. “Ideation” is a noun by definition that relates to psychology, but it’s also an emerging marketing concept; Vertical Marketing employs ideation experts who specialize in a style of brainstorming and creative campaign building that stems from activity, experience, information and pointed cues. The results make the round-table discussions of yesteryear pale in comparison. Consider, too, these suggestions for real-word status:

Apportunity (n.) — an opportunity for your business to create your own Smartphone application, or reach out to consumers via an existing app. Betsy Berman and I coined this one when discussing Smartphone applications a few weeks ago, and I find myself using it often since.

Clipsters (n.) — hip, young coupon clippers, an offset of Generation Q. With a reported 54 percent of coupon users finding their deals online, clipsters are a demographic worth targeting.

Cyberlibel (n.) — an actual thing, sort of. This phrase refers to defamation that takes place in cyberspace, which unlike actual defamation, raises legal issues of anonymity and free speech. Either way, it’s a hot topic in our “webcentric” world.

NBT (n.) — in a world that communicates more and more via abbreviation (BFF, LOL, TMI, TTFN) this is a clipped version of Next Big Thing. New trends, be they etymological or otherwise, are just around the corner, and the NBT is what marketing professionals are looking out for.

Onspiration (n.) — a portmanteau of “online” and “inspiration,” this not only refers to inspiration e-mail forwards, but to ways in which brands and businesses can inspire consumer loyalty.

Premiumization (n.) — the inevitable ascent of products within a brand.

Text-giving (v.) — similar to mobile giving, this is another extension that has proven to work. Consumers can use Smartphones to shop, surf the Web and vote for the next American Idol. Now, they’re donating to charity with the push of a button.

Vertical activation (n.) — (unrelated to Vertical Marketing Network, although we think we’re good at it) this is the act of reaching a target via consistent and motivating communications which garner a response (or activation) by said target. Imagine marketing as a ladder, at the top of which is your customer. Each rung is a step in a successful campaign that gets your brand closer to the top.

As newly coined terms and phrases become a part of our collective consciousness, they have the potential to be recognized as such. Still, says Fiona McPherson, senior editor of the OED’s new words group, “words have to pass a few basic tests before they can be deemed to have entered the language. They have to have been around a reasonable amount of time and be in common use.” Three to five years ago, terms such as “carbon footprint,” “defriend,” and “tweets” and “tweeps” who write them would have rendered me lost. These days, they’re as ubiquitous as the “blast offs,” “far outs” and “groovies” of generations past. Could our words one day make the short list?

In the freshman English-class favorite, Shakespeare’s Juliet says to her Romeo: “What’s in a name?” Sweet Juliet, clearly everything.

Have you coined or heard a new marketing word or phrase that reflects a sign of our times? Share it with us in the comments section.
Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: toprankonlinemarketing

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Posted by JJ Nelson

The Application Situation.

August 24, 2010

Smartphone users are gaga for programs that entertain, inform.

Like the phones that run them, smart mobile applications, or apps for short, have the potential to revolutionize the way consumers live. Can your brand or business take advantage of this opportunity?

I had to see it to believe it; that’s the kind of gal I am. No, a commercial is rarely enough. The best ads — whether they be in print or on television — make us want to see a product with our own eyes, test it out ourselves. Case in point: the latest commercial from Chase, depicting a couple atop a feathery bed, still donning their wedding finest and opening what we quickly learn are congratulatory cards filled with checks. The couple playfully tease one another about their new union, as they snap pictures of the checks with an iPhone, then deposit them into their bank account with the push of a button. That’s right, the push of a button. Online banking has been replaced by bedroom banking. Or really, anywhere banking. All thanks to Chase’s mobile application, or app for short. This, I thought, is going to revolutionize the way I live. Then, I thought: isn’t that what all good apps should do?

Maybe I’m just blogging out loud, but I think smart companies keep the “smart” in Smartphone. Mobile applications aren’t just for entertainment, they can help us live better lives, too. Which begs the question: how can marketers get in on the action?

As more consumers turn to their hand-held devices for email, surfing the Internet, shopping and more, it would benefit businesses of all shapes and sizes to consider ways in which they can maximize not just their online presence, but their mobile presence. We’ve talked about ways marketers have touched the lives of their consumers via Internet gaming and social networking, and about how m-commerce is the new e-commerce; just this week I received two emails announcing mobile-friendly versions of Web sites I love (JetBlue, Sephora, I thank you). Now consider this: is there potential for your business to go one step further and create an app of your own? Chase is hardly the first to tune into the possibilities. Aside from “m-banking,” Smartphone users can check movie times and buy tickets via apps from Fandango and IMDB and they can pick up vintage wares on eBay. American Airlines and Whole Foods both recently launched apps, so you can “check in” and get dinner ideas on the go. There are even programs that help singles connect, ’cause if you heart your Smartphone, well your partner better, too.

Although research predicts gaming applications will continue to be the most successful app type of all, it seems that at the core of “The Application Situation” is how these little programs help consumers, either by entertaining us, informing us, or by providing an extension of an existing service. By giving me interesting and relevant apps, brands such as American Express, Major League Baseball, Martha Stewart and Zagat send a message that they understand me and the busy life that I live. They’re also building their brands in important, timely and exciting ways. I know I respond to businesses that combine convenience and information with cutting-edge cool. Wouldn’t you?

It’s true that new mobile applications seem to be a dime a dozen; nary a day passes without talk of the latest and potentially greatest. It makes sense, then, for marketers to engage in the conversation and even join the fun. After all, “app”-ortunities, like opportunities, should never be squandered.

Do you use a mobile app that makes your life better? Share it with us below in the comments section.
Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo adapted from: jelene and jquig99

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Posted by JJ Nelson

User Discretion Advised.

August 17, 2010

Social media is exciting and relevant, but it does have pitfalls.

It's hard to deny the impact social networking has on the day-to-day. How do we balance our private and professional lives? Moreover, should we?

My Vertical Marketing Network coworker Valerie sent a thought-provoking email recently asking, among other things, how to — and perhaps more importantly, should we — juggle our personal and professional personalities when using social networking sites such as Facebook and Twitter? Her timing couldn’t be better. Social media policy is as hot a topic as the medium itself, and everyone seems to have an opinion. I never thought I’d recall the days of Friendster and MySpace with fondness, but social networking really was easier when it was strictly social. For many professionals, especially those working in media-related fields, it’s now required business. Or, so it seems for many of my peers. Their Facebook status updates and Twitter feeds are a continuous stream of carefully-worded pitches and endorsements, so much so that I can’t often tell where their work life ends and their personal life begins. Or, is it vice versa? If it’s hard to tell, rules of engagement are probably necessary. Because if the potential risks seem high for individuals, imagine what could happen to a brand or product caught in the social media snafu. And so, a word of caution: user discretion is advised.

Maybe I’m just blogging out loud here, but it seems like we should social network with less of an emphasis on “social” and more of an emphasis on “network.” You know, that thing we do to develop contacts, hopefully to propel our own careers or the life of our business.

Make no mistake, the contacts are out there. A recent comScore study found that globally 75.8 percent of all women online visited a social networking site in May 2010; for men the number is just slightly lower at 69.7 percent. Nielsen reports that in US households, more than half of the adults online (75 percent) have at least one social networking profile. Businesses not taking advantage of this are missing a major opportunity to engage with consumers and even gain new customers. Should businesses and individuals craft the images they put forward? Absolutely! How to do this is a little more complicated, since it’s unrealistic to think individuals are not going to interact with coworkers and possibly even potential clients using these mediums, and it’s unfair to expect your colleagues to wear their work hats 24/7. For reasons such as this, I have several friends who operate two Facebook profiles, one for friends and one for everyone else, be they bosses, parents or the creepy guy from accounting. That seems a little extreme, though, not to mention complicated.

Social networking is exciting and culturally relevant, and it offers users a myriad of opportunities to exchange ideas and information. But, it’s not without pitfalls. Valerie related the oft-circulated story of a young woman being offered a high-paying tech job, only to have to offer rescinded after tweeting about “selling out for the big bucks.” I’d like to think comments like that are made in jest, but that’s beside the point. Context is often lost completely in the party that is social networking, which is why you should never put anything on the Internet you don’t want everyone and anyone to see.

There is no such thing as privacy online, and as hard as that is for individuals to swallow, it’s an especially important lesson for businesses as to why they should hire communications experts to embark on building fan pages and social networking platform voices for them. In the virtual world, perhaps more important than knowing thy self, is knowing who is representing you and making sure they are clear about the image you want to project.

Vertical Marketing Network is on Facebook, and over the next two days we’ll be posting questions relating to this blog post. We want to hear from you, so check us out.
Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: M. Keefe

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Posted by JJ Nelson

Oh My, M-Commerce.

August 3, 2010

Smartphone applications are attracting consumers in new and exciting ways.

Apps aren't just for iPhones. Marketers should take notice of emerging opportunities in the Smartphone market.

One-stop shopping. The words inspire a flutter in my heart, a sigh from the soles of my hard-working, tired feet. If I could sing the praises of any one modern convenience, it would be for stores where I can pick up a pair of fashionable sneakers and Dole bagged salad along with a few California avocados, fill a prescription and swing by the bank (even better if I don’t run into a neighbor who wants to chat about my plans for Labor Day). Never in my wildest dreams did I think I would be able to do all this…and more from the palm of my hand. Sure, home computers and high-speed Internet have made otherwise mundane errands as exciting as finding a vintage Chanel bag on eBay. But it’s Smartphone technology that’s really got a hold on me, and boy, oh boy, am I rapt. From bargain-hunting to banking to luxury shopping, new Smartphone applications are making one-stop shopping a thing of the past, if only because I can now buy on the go.

Maybe I’m just blogging out loud, but it seems like brands and businesses that don’t embrace mobile technology run the risk of being left behind. At the very least, they might be over-shadowed by more forward-thinking companies. Brand loyalty is already on the decline; products want to avoid being seen as archaic — or simply not seen.

The numbers alone are astounding. Gartner research shows that Smartphone sales were up 49 percent in the first quarter of 2010. And according to a recent study by Pew Research Center in Washington, 59 percent of U.S. adults go online wirelessly, via Wi-Fi or mobile connections, using either cell phones or laptop computers. Among cell phone owners, 54 percent used their devices to share photos and videos; 23 percent accessed a social networking site; and 11 percent made a purchase. That last number is only expected to rise. Another study by ABI Research estimated that by 2015 shoppers globally will spend an estimated $119 billion on goods and services purchased with their mobile phones. U.S. numbers are a solid example, with mobile commerce (known as m-commerce) jumping from $396 million in 2008 to $1.2 billion in 2009; 2010 numbers are projected to reach $2.2 billion.

We’ve already talked about the new face of coupons and ways in which brands are engaging consumers online. Emerging mobile technology allows businesses to take things one step further. Whether it be Smartphone applications similar to those recently introduced by eBay and Fandango (thank you, Fandango, from the bottom of my line-hating heart), incorporating WiMO technology, or something as simple as launching an SMS campaign, opportunities abound. Smart marketers will take notice and take advantage. And smart shoppers — like me — will invest in a few more pairs of pajamas, since I no longer need to run to the store.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: William_Hook

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Posted by JJ Nelson

Cracker Jack Kids.

July 27, 2010

Innovations in packaging and technology keep big kids buying.

You can make an old trick new. Adults feel loyal to brands that maximize packaging and offer rewards, similar to the products of their youth.

Now that I’m old enough to know how these things work, I can begrudgingly give credit to the genius who insisted on “a prize in every box” of Cracker Jack. When I was younger, I thought that prize was made just for me (OK, and occasionally my little brother), a small token of appreciation that seemed to say, “Gee, you’re special.” The same went for those tiny comics that had me smackin’ Bazooka Bubble Gum, the games and toys in McDonald’s Happy Meals, the treats at the bottom of the cereal box. I didn’t, yet, think of myself as a consumer. And I certainly didn’t think of myself as having brand loyalty (although I surely did, as we’ve been told for years that most kids do). Yet, I see it so clearly now — how my preferences were shaped, how that little something extra made a big impact and, in the end, a big difference in how and what I buy. It’s a quality I seek out — and practically expect — today. Whether it’s a handsome recipe card included in a box of pasta or smartly designed grab-and-go yogurt; I’m inclined to choose the brand that gives me more, ’cause, I am special.

Maybe I’m just blogging out loud, but it seems as if there’s a new “prize” in town, and Cracker Jack Kids — even if we’re all grown up — are still the target demographic.

Take, for example, some of the brilliant innovations in wine and spirits packaging. Labels like these are a wine lover’s dream. How often have you had a great bottle of wine, only to go to the store the next day and not remember the name? Or worse, served an expensive bottle that was too cold or too warm. Packaging that allows consumers to peel away a portion of the label to help them remember the product they love, or that has a built-in temperature gauge (Coors Brewing Co. is doing this, too), sends a powerful message: Not only do we care about your business, we care about your enjoyment of this product, and we hope you’ll buy it again. In a saturated marketplace, a message like that can go a long way.

So can tapping into the Smartphone market, which is — no surprise — booming. Pew Research Center in Washington recently found that “40 percent of American adults (18 years or older) use their cell phones to surf the Internet, check their email and instant message.” Companies such as WiMO Reality are taking advantage of this, and it’s no surprise that the brands taking advantage of WiMO (TNT is promoting season two of HawthoRNe on packaging of Sony Pictures DVDs). In simple terms, WiMO is a Smartphone application that allows users to scan an image (using their phone’s built-in camera lens) off a product’s package (or any printed materials) that then connects to virtually any type of content that is imaginable, from promotional tools and exclusive content, to instructional and music videos, to locating the nearest place of purchase. It’s timely and smart, not to mention fun and entertaining, hallmarks of all good toys, hallmarks of all good packaging extras to capture the interest of Cracker Jack Kids.

The packaging has changed, but the concept has not. Companies still need to make the most of their product, while consumers — from little kids to Cracker Jack Kids — want it all, and then some. I rarely indulge in the excesses of youth, but when I do, you better believe I go right back to the brands I grew up on, and no, I never share.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: star5112

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Posted by JJ Nelson

The Game of Life.

July 13, 2010

The new games in town are virtual ones, and industry leaders are relying on them to attract consumers.

People who grew up playing games such as Monopoly learned the value of healthy competition. Now, smart brands are banking on that same spirit to drive consumer awareness in the virtual gaming world.

Unlike many of my coworkers, I’m far from being considered cutting edge when it comes to technology: I don’t track the latest and greatest developments in cell phone and computer technology (although I do manage to acquire “hip” accessories, i.e. iPhone, MacBook, etc.); I’m hard-pressed to operate a home entertainment center without breaking a sweat; and I social network with gusto one day, and utter disdain the next. Naturally, when my Facebook and Twitter feeds became clogged with FarmVille, Foursquare and Mafia Wars updates, I tossed my virtual hands up in despair. I started using these services to keep up with friends; what I didn’t realize was that “keeping up” meant more than family photos and the occasional work update, it also meant staying apprised of the evolving day-to-day marketplace. But then I read this. Leave it to a designer knockoff discount chain to get me to listen. And apparently, I’m not alone. In its May 31, 2010 issue, Advertising Age reported that a “gaggle of brands, from 7-Eleven to JetBlue, H&M and Tesla Motors are counting on people’s attraction to competition to get them more engaged.” Whether playing for badges, points or simply bragging rights, consumers are turning to alternative realities for more than entertainment. It should come as no surprise that it’s working.

Maybe I’m just blogging out loud, but evolving online communities seem to be trumping real ones in getting our attention. At the very least, they’re raising the bar of consumer expectation and the potential for business outreach.

As the line between real and virtual lives becomes more blurred, it makes sense that smart brands are engaging consumers across all levels. According to a recent Nielsen report: “For US households with Internet access, 75 percent visited a social networking site in May. And more than half of online adults have at least one social networking profile.” It would be downright foolish for marketers to not target this demographic, especially when considering another Nielsen report that found that top social media users are 1. affluent and 2. urban. In plain language, these are the people who have ready access to goods and who have money to spend.

Take, for example, this report from digital marketing news site ClickZ. It asserts that while Foursquare is “hands-down the leader of the location-based/geo-social marketing space when it comes to hype [and I’d be quick to point out it is by far the favorite among my young, professional friends], other services are making their marks among both brands and users.” It then goes on to site successful online campaigns to engage consumers from The Gap, Olay and Pepsi. It’s no coincidence that these brands are both industry leaders and ahead of the virtual game. That is, after all, what this is. It’s the Game of Life. Whether they realize it or not, consumers are in it to play, and smart brands – should knowingly – be in it to win.

What team are you on?

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: therichbrooks

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Posted by JJ Nelson

Generation Q.

June 22, 2010

Coupons once were for clipping. But these days, savvy companies are targeting consumers who readily have access to the Internet.

As we turn from FSIs to the Internet for savings, coupons are getting a much-needed makeover.

Coupons. Does the mere mention conjure images of your mother sitting at the kitchen table on Sunday mornings, coffee in hand and scissors not far behind? It does for me. Later, there would be the inevitable trips to this store and that, stocking up with the added thrill of saving a buck or two. It wasn’t until I was living alone for the first time and playing grown-up that I realized my mother’s coupon habit (and her mother’s before that) wasn’t as thrifty as I thought. Rarely does a single gal like me need the three or five cans of soup that warrant a price break, and as much as I love a bargain, who of us has the time to skim the FSIs, let alone spend an afternoon dashing around town for a deal? Coupons, I thought, were a thing of the past.

Then, the other day, I received email advertising “Martini Week.” Sure the subject caught my eye, but it was the fine print that really got me: for a two-week period, participating restaurants were shaking up premium martinis at a $10 price tag. Imbibers simply needed a code word to seal the deal. Code words, promotion codes, online deals: I’ve been seeing them a lot.

Maybe I’m just blogging out loud here, but are these not the coupons of the 21st century — eco-friendly, more user-friendly and all-around chicer in their new disguise?

A quick Facebook poll of my friends revealed many of my girlfriends use these new coupons on a regular basis, and according to an April 2010 report from The Nielsen Co., “While newspaper inserts are still the primary method of coupon distribution (89 percent) and redemption (53 percent), Internet redemption growth has skyrocketed, rising 263 percent in 2009.” No longer, it seems, are coupons for clipping. Savvy companies are targeting consumers who readily have access to the Internet, be it via home computer or Smartphone. They also seem to be reaching out to consumers with an attractive asset: money to spare.

Sure, web sites such as Groupon and applications such as mobiQpons alert shoppers to deals at Wal-Mart, but they also advertise discounts at Banana Republic and Whole Foods Market (aka Whole Paycheck), hardly bastions of savings. Recently, one New York-area Groupon discount was for sailing lessons (who do they think I am?). While surveys show this paradigm shift isn’t new, it certainly seems appropriate for the current economic outlook. The Nielsen report confirms:

“…One might think that the lowest income households would be among the heaviest users. In fact, more affluent households dominate coupon usage: 38 percent of ‘super heavy’ users and 41 percent of ‘enthusiasts’ come from households with incomes greater than $70,000. Households with income of $100,000 and up were the primary drivers of coupon growth in 2009.”

Quoting another Nielsen finding, the Wall Street Journal reported in March that heavy coupon users, defined as consumers who redeem 104 or more coupons within the span of six months, “tend to be females under the age of 54 with college degrees and household incomes above $70,000.” I know I speak for my peers and myself when I say that even when I don’t feel like I’ve got cash to burn, I’m going to buy what I need. But even with the economy looking up, consumers need additional incentive — beyond the need — to buy luxury items. By giving an old medium a much-needed makeover, companies are targeting a new demographic: “Generation Q.” And this generation — no matter our age — is listening and ready to spend.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: Bramus!

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Posted by JJ Nelson

The American Idol Effect.

June 16, 2010

Immortalized at Madame Tussauds, American Idol's Simon Cowell is famous for passing judgement. Could you fill his shoes? Consumers are capable, thanks to the many brands that ask us to shape their image.

No longer are classic brands simply appealing to us on a basic need and/or want level; they’re saying, “We want to hear what you think.”

It’s no secret we live in a fast-paced world, one in which new ideas, products and trends come and go faster than you can say, “You’re fired.” While I used to worry about keeping up, lately I find myself less concerned with passing fads and more interested in what makes it past the censors; what we, as consumers, deem worthy of investing in, literally and figuratively. Catch phrases, product slogans, even jingles have worked their way into the collective consciousness (up there, that was a reference from The Apprentice, but you already knew that), but not all of them make the cut. That’s how I got to thinking about voting. Not for politicians, but for products and their evolving images.

The value of what I like to call “The American Idol Effect” extends beyond entertainment. By asking us to get involved and vote on their latest mascot, packaging and slogans, smart brands such as Brawny, James Hardie, M&Ms and even Microsoft are building a different kind of customer loyalty. They’re also redefining what it means to be a consumer.

Is it just me blogging out loud, or is consumerism no longer solely about purchasing power? It seems it’s also about having our say, and having our say matter. Brand loyalty is not just driven by the brand; suddenly, consumers are co-pilots.

That said, a recent study by comScore reports a steep decline in brand loyalty over the past two years, ultimately concluding that as of March 2010 less than 50 percent of American consumers were purchasing brands they most desired. Says comScore chairman Gian Fulgoni: “A decline in loyalty to consumer goods brands is typically one of the byproducts of a recession as consumers give greater consideration to price.” He goes on, however, to say, “Despite these shifting consumer dynamics, research has repeatedly shown that premium brands which invest in marketing and promotion activities aimed at maintaining buying at ‘preferred’ levels are able to minimize short-term erosion of share to less expensive brands and position themselves for a bounce-back when the economy improves.”

In response to this, a blogger at Mobile Marketing Watch asserts “utilizing mobile concepts to engage an audience on new levels and insert a brand image in contextually relevant and highly targeted content can do wonders for a brand that’s quickly seeing a loss in customer loyalty.” And although we’ve seen this mostly in television, where shows like the aforementioned American Idol and Dancing with the Stars empower audiences to help decide the winners, it is popping up elsewhere, too. In popular music, we’ve seen bands such as Bon Jovi and The Rolling Stones encourage fans to vote for songs to be played live (Bon Jovi did this on the Grammy Awards earlier this year). It’s hard to go online without wandering down the rabbit hole of one sweepstakes or another, asking little more than the voter’s age, gender, zip code, and a simple “yes” or “no.” In this way, it’s fascinating to consider how technology (i.e., cell phones, the Internet) can work to both a brand’s and customer’s advantage. It’s equally fascinating to consider how old-school (nay, classic) brands have made an old trick new. No longer are they simply appealing to us on a basic need and/or want level; they’re saying, “We want to hear what you think.” The louder message though is in the implication — that our voice matters. Do you think it’s working? Dial “1″ for “yes” and “2″ for “no.”

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: cliff1066™

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Posted by JJ Nelson

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