Tag Archives: marketing

The Better Advertising Mousetrap

Ralph Waldo Emerson is said to have coined the phrase: “Build a better mousetrap, and the world will beat a path to your door.” When it comes to advertising, social media has built the better mousetrap, and you and I are helping them to improve it every day.

The Social Dilemma

There’s a new documentary on Netflix called “The Social Dilemma” about how social media is impacting our lives, and is truly eye-opening. I encourage you to watch this documentary if you subscribe to Netflix, but especially if you’re in advertising and marketing. In fact, it would pay you to subscribe to Netflix just to view this documentary; it’s that important!

This blog won’t be about many of the important social issues raised in the documentary, but instead I plan to focus on how traditional media, like AM/FM radio broadcasting, is fighting a battle for advertising with the internet companies that isn’t a fair fight. Broadcasters are in essence coming to a gun fight, wielding a knife.

This shouldn’t come as a surprise to regular readers of my blog, because back on February 25, 2018, I wrote an article titled “Radio Has an Addiction Problem,” that quoted MIT professor Sherry Turkle’s 1995 book “Life on the Screen, Identity in the Age of the Internet” saying “computers don’t just do things for us, they do things to us, including ways we think about ourselves and other people.” Turkle said that computers weren’t just a tool, but were sneaking into our minds and changing our relationship with the world around us.

Monetizing Social Media

Social media quickly realized that in order to sustain itself it needed to monetize its service. Google’s search engine business was a Silicon Valley marvel for not only harnessing the power of the internet but simultaneously building a revenue engine that grew right along with it. Tim Kendall, now CEO of Moment, was one of the early people at Facebook, charged with coming up with a way to make money. He said that he decided that the “advertising model was the most elegant way.”

Advertising

The advertising business has always been about selling exposure to the people who use the product. Newspapers sold access to its readers, radio sold access to its listeners and television sold access to its viewers.

“Half the money I spend on advertising is wasted;

the trouble is, I don’t know which half.”

-John Wanamaker

Businesses have always wanted to get the biggest bang for their advertising buck, but realized that in the world of advertising, there were no guarantees, that is until social media came along. Mel Karmazin, former broadcasting and satellite radio CEO put it this way when he met with the founders of Google: “You’re messing with the magic of sales.”

Jaron Lanier, who wrote the book “Ten Arguments for Deleting Your Social Media Accounts Right Now,” explains that what social media is doing more effectively than traditional media is “changing what you do, how you think and who you are…it’s a gradual, slight, imperceptible change in your behavior and perception.” It’s similar to a magician performing slight-of-hand tricks, and making you believe things that aren’t real.

“This is what every business has always dreamt of, to have a guarantee that if it places an ad it will be successful. That’s (social media’s) business, they sell certainty. In order to be successful in that business you have to have great predictions. Great predictions begin with one imperative, you need a lot of data.

The internet has given us a new kind of marketplace that never existed before, a marketplace that trades exclusively in human futures. Just like there are markets for pork belly futures, or oil futures, we now have markets that trade in human futures, at scale, and those markets have produced the trillions of dollars that have made the internet companies the richest companies in the history of humanity.”

-Shoshana Zuboff, PhD, Harvard Business School

Author of “The Age of Surveillance Capitalism”

“Any sufficiently advanced technology

is indistinguishable from magic.”

-Arthur C. Clarke

Getting Your Attention

Every company whose business model is to sustain itself through the selling of advertising is competing with other companies for your attention. Traditional media is competing with every social media company to get as much of your time and attention to their platform as they possibly can. Remember, when you’re not paying for the product, you are the product.

The advantage social media has over traditional media is their development of persuasive technology. It’s designed to intentionally apply to the extreme behavior modification in the user, and cause them to take a desired action. It does this through the use of positive intermittent reinforcement, just like a casino slot machine lures you into thinking the next pull of the handle will release its fortune. Social media works to create an unconscious habit, programming you for a deeper level of control than you even realize is happening.

Social media has learned how to exploit a vulnerability in human psychology, which even when you know how it works doesn’t inoculate you from its power to change you.

No longer is social media a tool we use, but is a tool that uses us, creating this technology based environment designed for mental addiction through psychological manipulation.

“There are only two industries that call their customers ‘users’:

illegal drugs and software.”

-Edward Tufte

Most concerning about this change is that it’s being driven by a technology that’s advancing exponentially. In contrast, our human brain has not really advanced at all over the same period of time. The rate of change is beyond our human comprehension, even for the very people who are designing and building these computer networks.

“The race to keep people’s attention by social media isn’t going away. Our technology is going to become more integrated into our lives, not less. The AI’s (artificial intelligence) are going to get better at predicting what keeps us on the screen.

How do you wake up from the matrix when you don’t know you’re in the matrix?”

-Tristan Harris, Center for Humane Technology Co-Founder

“Whether it is to be utopia or oblivion

will be a touch-and-go relay race

right up to the final moment…”

-Buckminster Fuller

Today, the internet is a more efficient way to sell our attention to advertisers.

Now you know why.

16 Comments

Filed under Uncategorized

The Times They Are A Changing

Bob DylanIn 1963, Bob Dylan wrote the song “The Times They Are A-Changin” which would become an anthem for frustrated youth who were anti-establishment and wanted change. This marked the beginning of the upswing of a “Me” cycle. 1963 was the rise of the Baby Boomers, a generation that would grow to seventy-four million teenagers at its peak. A generation raised on radio.

The Rosetta Stone

Before Napoleon Bonaparte discovered the Rosetta Stone in 1799, no one had a clue how to read Egyptian hieroglyphics. But that four foot tall stone had engraved on it the same story in three different languages, two of which scholars knew how to read.

Today, we live in a world where everyone is concerned about the rapid changes being brought on by the COVID-19 global pandemic. But our world is changing in ways that go beyond the impact of a novel coronavirus, it’s also a societal time of change in America, change that will continue even after a vaccine has been discovered that will quell this out-of-control virus.

Come gather ’round, people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone
If your time to you is worth savin’
And you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’

The “We” Zeniths

In 2012, Roy H. Williams and Michael R. Drew came out with a book titled “Pendulum, How Past Generations Shape Our Present and Predict Our Future.

The essence of the Pendulum hypothesis is that society follows a predictable oscillation, meaning a pendulum that swings between a “We” zenith and a “Me” zenith. Understanding this oscillation will give us insight into the forces that drive the decisions the public makes.

“Predictable, rhythmic attractions are what move our society. Rhythm is intrinsic to the human experience. Feet patter, hearts beat, lungs breathe, planets circle, and seasons cycle to a rhythm. Music, poetry, and dance are built upon it.”

-Roy H. Williams & Michael R. Drew

Some of the “We” zeniths the book Pendulum describes:

  • 1783 America wins Revolutionary War
  • 1863 American Civil War
  • 1943 Adolph Hitler – The Holocaust

{Each “We” zenith is 80-years apart}

Pendulum points out that “virtually every instance of widespread viciousness in Western society has happened within ten years of the Zenith of a “We.” It should be noted that a complete oscillation of the pendulum takes 80-years and that 2023 will mark the zenith of the current “We” period in the Western world.

“We” periods can be defined as “I’m OK, You’re Not OK,” and “Me” periods as “I’m Not OK, You’re OK.” “We” periods are times of witch hunts, “Me” periods are times of hero worship.

According to this book, marketing becomes very easy as we approach the zenith of the “We,” and all one needs to do is “choose what and who you will demonize, and then start tossing fear-soaked words as though they were longneck beer bottles full of gasoline with fiery rags stuffed down their throats.” Does any of this sound like the world we’re experiencing today?

Human Change vs Other Change

We live in a world where the speed of change feels like it is constantly accelerating, and on a technology level it is, but deep human change does not; like the speed of change of the trees, which is not controlled by technology.

Plant a tree and monitor its growth, it appears to not change by the day, but come back in 10-years, 20-years or 40-years and the changes will be obvious. Technology and the internet have done nothing to change the natural cycle of change.

What we can hope for is that the 21st Century’s instantaneous global communication might mitigate the negativity and viciousness as we approach the zenith of the current “We” cycle.

Come writers and critics
Who prophesize with your pen
And keep your eyes wide
The chance won’t come again
And don’t speak too soon
For the wheel’s still in spin
And there’s no tellin’ who
That it’s namin’
For the loser now
Will be later to win
For the times they are a-changin’

What Does It All Mean for You?

We’re seeing people demanding authenticity and transparency in all things. We’ve given up our liberties for the perception of security and given up our privacy for convenience.

The future of education will be about creating new pathways to wealth, and re-creating a middle class, as our current world has been bifurcated in to “haves” and “have-nots.”

How Do You Market in a WE Cycle?

You write “pull” messages, rather than “push” messages from now until 2043 for all of Western society, Williams and Drew write. What’s the difference you ask? Push messages are based on a ‘needs analysis’ and ‘over coming objections,’ where as pull messages build relationships through positive attraction. Social media via the internet is a relationship-building tool. The internet by serving up only what’s requested, is in essence a “pull” medium. Radio, television, newspapers, magazines, and outdoor are all “push” mediums.

People who attempt to “push” their messages with pop-ups and other methods on the internet are met with anger by the consumer.

How could your radio program attract an audience with seduction? How could you romance your listeners to want to spend more time with your radio station, its website and/or podcast?

Time is money is the name of the game in a “We” cycle. As Williams and Drew put it, “Whoever wins their time is the one most likely to win their money.”

The line it is drawn
The curse it is cast
The slow one now
Will later be fast
As the present now
Will later be past
The order is rapidly fadin’
And the first one now
Will later be last
For the times they are a-changin’

We Me Sales Strategies

Pendulum by Roy H. Williams & Michael R. Drew

 

2 Comments

Filed under Education, Mentor, Radio, Sales

Ho, Ho, Ho…Go, Go, Go

Job CutsSadly, it’s that time of the year when radio station budgets are being finalized and staffs are being cut before the start of a new year.

Hubbard Radio’s Chicago VP/GM Jeff England recently told the trades, “As technology evolves, we have to look for ways to use it to our advantage. The difficult decision to reduce staff is an effort to remain competitive in a very challenging environment.”

General Motors

The large radio companies are faced with the same challenges that America’s large car companies are faced with, a rapidly changing marketplace.

GM’s CEO, Mary Bara, announced that General Motors would be shuttering seven plants around the globe to focus on increasing production of new electric vehicles. More than 14,000 GM workers will be out of a job as the company laid them off without any warning.

An outraged GM worker told the press, “You’re going right into Christmas. You’re looking for a celebration and that’s not there now.”

Sadly, I’ve known lots of radio people who can identify with how the workers at closing GM plants feel. I am one of them, as Clear Channel showed me the door without warning, just before Christmas 2009.

What makes these plant closings so impactful to their communities is not just the GM workers out-of-work, but the additional downsizing in the support businesses in those communities and elsewhere. As many as seven more people, for every GM worker, could see their jobs eliminated at businesses such as food services, retailers, healthcare, etc. All the businesses that broadcasting depends on for advertising.

Focused on the Future

Mary Bara, in a statement, said of GM’s decision to close some of its plants, “The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future. We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

Is this any different than what any other industry, including broadcasting, needs to be doing?

Top Tech Trends for 2019

I just sat in on a Juniper Research webinar about the “Top 10 Tech Trends for 2019” and it was mind numbing in many ways.

I try to stay up on the latest trends, but I must admit I needed a second browser window open during their presentation to understand what the heck they were talking about. They were using terms like chatbots, loot boxes, RPAs, RCSs, etc.; like these were common everyday terms.

Here’s what I learned about tech’s future as it may impact radio and broadcasting:

  • Digital, blockchain, robots, voice assistants, 5G wireless and artificial intelligence (AI) are where everything is headed.

Intel is working with China’s Alibaba (an internet service that connects buyers with sellers) to develop artificial intelligence to enhance EDGE computing power in the internet of things. China is a huge market for American companies. In the case of General Motors, they didn’t build car assembly plants in China to ship those vehicles to America, they built them to sell vehicles in China. In the first nine months of 2018, GM sold 2.7 million cars in China compared to 2.6 million cars in all of North America.

Amazon’s digital voice assistant, Alexa, will be deployed in more devices. Currently voice assistants are in 9% of the households worldwide according to Juniper Research. That percentage is even higher in developed markets and VA’s will become a service-led market going forward.

5G wireless will enable RCS (Rich Communication Services) that will compete with services like Facebook messaging and is expected to bring people back to messaging directly via their smartphones, due to a more vibrant, media-rich platform. RCS is the successor to SMS text messaging that we now use.

Digital Advertising in 2020

Salesforce Research in their latest insights into the new era of advertising and media buying report says that:

“Consumers and business buyers receive more messages, through more

channels, then ever before. Cutting through the noise requires advertisers

to deliver hyperpersonalized messages that resonate at the individual

level. Now, advertising is undergoing a transformation — the biggest

revolution since the launch of digital ads in the 1990s — driven by data.

 

To effectively reach audiences and interact with them in a smarter, 1-to-1

manner, advertisers must connect and make sense of a myriad of data

sources. Of course, achieving this requires a shift in dynamics; advertising

and marketing can’t live in vacuums. Technology can’t be an afterthought.

The winners in this new era will coalesce the right teams and technologies

to harness data, more precisely track their efforts, and measure progress

to evolve their strategies at the pace of the consumer.

 

Dominant channels — and thus budgets — are shifting, too. Increasingly,

advertisers will rely on major platforms under the Google and Facebook

umbrellas to deliver their messages. And success isn’t measured only by clicks and impressions, but also lifetime customer value.”

Salesforce says that advertising and marketing are converging, and that the same team now performs both functions and shares the same budget. Companies now are over the tipping point (57%-59%) internalizing their ad spend decisions for Facebook/Instagram and Google search. 94% of companies now use Customer Relationship Marketing (CRM) data to target their advertising. The main benefactors of this change are Facebook and Google, with an estimated 66% of digital ad spend going to just these two.

Click HERE to get your copy of the full report from Salesforce.

Strategy, Tactics and Radio’s WHY

I asked the question in the fall of this year, “What’s Radio’s Why?” I asked that question because it often appears that radio is employing lots of tactics without first having a grand plan; a strategy.

GM and Ford both see a future where SUVs, trucks and electric vehicles will be their primary focus. Ford plans to eliminate all but two of its car lines and GM announced that it would be terminating many of its car models too. Both of these car companies have a future strategy, and I would contest, have found their “why.”

In order to have a profitable strategy for radio, the industry must first answer what its WHY is,  and that it fits into the needs, wants and desires of a 21st Century listening audience.

 

 

 

 

3 Comments

Filed under Education, Mentor, Radio, Sales

The Magic Hat

67aI’m not going to get into the weeds about the presidential election. But I do want to weigh in about marketing and promotion.

I read that Donald Trump spent more on those “Make America Great Again” red ball caps than he did on any other part of his campaign. I also know that in the fly-over states his lawn signs were also prolific.

I bring this up because I remember when radio stations promoted themselves prolifically as well.

Do you?

It’s About Touching People Emotionally, Stupid

Roy H. Williams taught me long ago in writing persuasive radio commericials that if you win a person’s heart, their mind and pocketbook will follow. People first are hooked by their emotions and then justify their actions logically.

Go Team Go

Pick any sports team, in any sport, and you will see team fans proudly wearing their favorite team’s hats, shirts, colors.

Colleges also understand the importance of school spirit through the display of all kinds of wearables.

Bumper Stickers

Radio used to own the bumper sticker market. One radio station I especially remember was WOBM in Toms River, New Jersey. 67 This simple white on blue bumper sticker was seen on virtually every car at the Jersey Shore when I moved to Atlantic City in 1984.

But many of these station branded items seem to have been eliminated as budget cuts forced a leaner, meaner operating style.

Ratings vs. Station Wear

These days one of a radio station’s biggest expenses is audience ratings. The expense line for station branded items I’m sure pales by comparison.

The Federal Election Commission filings show that Donald Trump’s presidential campaign spent around $1.8 million on polling from June 2015 through September 2016, but spent $3.2 million on hats. Polling like audience ratings don’t touch anyone on an emotional level (except maybe the manager when the bill comes due).

Is there a lesson for radio here?

8 Comments

Filed under Education, Mentor, Radio, Sales, Uncategorized