Advertising and Wall Street
I do not presume to know much about the stock market; however, due to the recent allegations hinting that certain investment bank underwriters supporting the IPO told clients earlier this month that they were reducing their earnings forecasts for Facebook, the social networking site has had quite the tumultuous ride during its opening week on Wall Street. And knowing what we know about the events leading up to this point, it's not very difficult to see the connection.
It is said these investment banks made the decision to sway their investors after supposed conversations with Zuckerberg. According to these reports, Zuckerberg hinted that he was worried his site's value was decreasing because so many advertisers had been pulling out recently, and that Facebook's mobile version was looking to have an even meeker forecast.
So what does this say about the power/affect of advertisers and their monies spent? It looks to me that; firstly, you need to create a sound platform that will ensure a ROI on ad dollars spent. As we have said before, ROI for ad dollars is not something you should expect immediately (consider it more like any other cost to run a business) BUT if over time, as General Motors noticed, you continue to see no return on dollars spent, you could blame it on the outlet, but it could also be as simple as – the campaign just wasn't good enough.. But I digress.
So where does this leave us? I've established two takeaways from this Facebook debacle. One: Where companies choose to spend their ad dollar has a direct correlation with how successful said company/outlet can be. Two: Some advertising platforms are indeed more successful than others, and just because something is “popular” doesn't mean it's always good for advertising. However; the bottom line is, and a point you will notice me making time and time again , you must think of the consumer before anything else, and no matter what outlet you use to get your message across – if you're not talking to them… they're not going to listen!
Google’s Revamped Search Engine
I read an article on this change to Google on CNN.com and wondered to myself how this will affect certain aspects of SEO, etc. The example used in the article discusses the search term 'kings'.Now kings could be a number of different things, the NHL team (LA Kings), the NBA team (Sacramento Kings), or you could be searching for an actual King. The new Google search will have separate boxes asking you which 'king' you could be referring to. This will hone in on what exactly the user is searching for so they won't have to sit and look through pages of search results in order to find exactly what they are looking for. Another quote from the article reads, “More specific searches, say for the name of a celebrity, will render boxes with basic information, as well as links to what Google believes are possibly related searches”.
This new and improved search is known as Knowledge Graph, and claims to have Google search think more like a human. In a quote from the article, Jack Menzel, director of product management at Google says, “The web pages we [currently] return for the search 'kings,' they're all good. You, as a human, associate those words with their real-world meaning but, for a computer, they're just a random string of characters.” Menzel also says, “the initial version of Knowledge Graph has information on 500 million people, places and things and uses 3.5 billion defining attributes and connections to create categories for them.” This adds another innovative idea to Google's arsenal. Knowledge Graph should directly affect the way a user searches on the web. Another great job by Google.
Prophetic Presumptions As It Pertains To Paradigm Shifts
Imagine, if you will, that all the TV shows (past and present), sitcoms, Super Bowls, etc…were all available to you simply by searching for it and pushing play. Now imagine that what I just said is happening on a 60″ flat screen, high-definition TV. Television is going to be dramatically changed forever and in the near future. Internet capable TV's will go from being gimmicky to becoming the norm and exploiting that connectivity to its fullest potential. A prospective service could even charge a monthly fee to use this service, replacing companies like Comcast, unless they too jump aboard.
Do you think it's out of the realm of possibility to eventually have integrated DVR's in your iPhone that would allow you to pause a TV show that you were watching at home and take it with you on the go? Do you remember when all a phone could do was make a phone call? All digital devices are headed toward multi-functionality.
This is a GOOD THING! Consumption of media on the go and on-demand will not only revolutionize the industry from an entertainment standpoint, but it will change the way that companies sell their goods, market their goods, and advertise. With this type of epic paradigm shift on the horizon, your business needs someone that understands all of the facets of digital media and its potential application. Mad Men Marketing has extensive experience with digital media and a comprehensive understanding of e-commerce. Let us MAKE THE FUTURE WORK FOR YOU and keep your business on the cutting edge of digital creativity.
From BoobTube to YouTube
Many of the big national advertisers are already buying into the trend of the web video appeal, and it's only a matter of time before everyone else jumps on board. It makes sense, if you think about it. Instant gratification has always been a trend in the American lifestyle, and with Cable/Broadcast TV not only do you get less variety – but more importantly, less control over what you can watch at any given time. In contrast, on sites like YouTube and Hulu, at the click of a button you can watch what you want, when you want, wherever you want! So, why wouldn't advertisers take notice and advantage of the range these web video portals provide?
Prediction: With a massive fluctuation in ad spending towards web based video channels, Broadcast Television will begin to suffer. And, as internet connected TV's continue to rise in popularity (when the prices of these fancy TVs drop a bit)… consumers will be less inclined to pay for cable subscriptions when they can access the internet from their Flat Screen/HD/3D/Google connected television – voice command and all…
Over time, even more web video channels will arise – you can already gain access to most of the popular cable networks via the internet – therefore basic cable will fall.
'Tis the dawn of a new age – From rabbit ears, to cable cords, to cable boxes, to DVR's, now to Internet TV. What will they come up with next?! And more importantly, with relevance to our industry… how will advertising follow?
Stay tuned…
When do you no longer own YOUR ideas..?
This topic brings me to the recent law suit between New York-based visual merchandising and branding firm, Hudson & Broad, and their former clients JC Penny. The suit is about a “breach of contract and misappropriation of trade secrets.” In this case, JC Penny allegedly signed a contract for use of H+B's design and idea with a promise to use it in several hundred stores. JC Penny then allegedly broke said contract and took the idea to another vendor. In this instance, there was a contract, which means they might have a case. But what about in situations where only a pitch is made, where ideas are shared, with no guarantee of any contract being signed?
This is a risk agencies take every day. We thrive on ideas, and enjoy sharing them for the future benefit of our prospective clients. But once an idea leaves our lips, is it really still OUR idea?
My response to this conundrum is simple. With little risk comes little reward, and the converse is also true. Without taking this gamble – agencies would never win work. How can you prove your expertise, passion, creativity and worth without sharing your well thought out ideas? So although it's always a risk, I imagine we all hope and expect that mankind will abide by the 'golden rule'. As the President of Hudson & Broad publicly states, all they want is to be treated as the campaign in question boasts “Fair and Square”.