Internet, search marketing, digital advertising, sales enablement, social media, video, online communities, mobile, predictive analytics, content curation . . . Is it even possible for the pace of change in marketing activity to continue to accelerate? According to top marketing leaders in business-to-business (B2B) marketing, absolutely. So get ready, folks, the rocket ride isn't over.
During the month of May, Forrester and the BMA collaborated to entice and persuade 117 CMOs and senior VPs at firms roughly split between companies with fewer than 5,000 employees and those with 5,000 or more — to respond to attitudinal questions about the pace of change, the role of marketing, evolving skill sets, and the degree of collaboration between marketing and peer functions.
Welcome, graduates of the class of 2013, and congratulations. You are some of the finest students our system of education — no, our society — has ever produced. Rather than stand here and occupy your time with random inspirational thoughts, I would prefer to stand back and let you rush out there to disrupt the world into which you were born.
Unfortunately, you probably won’t. And that’s too bad because those of us who have gone before you really need you to disrupt things — which is ironic to say because we are actually the reason you won’t live up to your potential.
Now that I have your attention (and perhaps have primed the urge for an antidepressant), let me tell you why your future is likely so bleak.
You are among the world’s first fully digital citizens. You were born after the Macintosh IIx, Windows 3.0, and the launch of AOL. We now have the iPad, Windows 8, and Google Fiber. When you entered kindergarten, already 20 million US households were connected to the Internet, and by the time you started high school, that number had quadrupled to approximately 80 million. Oh, and in that year of high school, YouTube posted its first video and Facebook opened its social network to anyone with an email address; today, YouTube shows 4 billion hours of videos each month, and Facebook has more than 1 billion friends.
Folks, this one is going to be short because it's the easiest case I've ever made. Microsoft wins the next-gen game console launch wars by launching something that the company doesn't even call a console. Where Nintendo offered us a tablet to accompany the millions we had already bought and Sony then offered us a box that we couldn't even see, Microsoft has trumped them both by delivering the Xbox One. Let's tally up the points:
The name. Wii U means something, I'm sure, to someone. PS4 means "we like the past and want to extend it." Xbox One takes a bolder and more important stand by saying, "It's time to reboot the whole category." This is beautifully illustrated in the way that the Xbox presenters never referred to Xbox One as a game console. It is an All In One Home Entertainment System.
The reveal. PS4 famously flopped its launch by hiding the console entirely. That would have been fine last generation, maybe. But this generation comes in the post-Steve Jobs era where the device and its price are shown. Microsoft debuted the box, the new Kinect, and the new controller in the first 60 seconds of the event.
The scope. Wii U and PS4 both promise to provide access to video and other interesting media experiences. Xbox One actually delivers those things in the most satisfying and complete way anyone other than TiVo has done so far, letting you switch from gaming to TV to movies to web browsing with simple voice commands and practically no waiting.
If you’ve been reading my blogs, you know that I love to write about sports analogies to help marketers get a new perspective on the issues they deal with. But, although we’re in the midst of what most likely will be our world champion Miami Heat’s march to its second NBA championship in 2013, I’m going to turn left and mix things up a bit in this post.
I’ve been married to an architect for 25 years (as of this May 29th), so it probably won’t surprise you that I also often think of things in terms of designing and building. Considering what goes into creating a building, it provides a fitting analogy to think about how you should approach building your relationship with your chief information officer (CIO); similar to the way architects needs to work with their clients.
Of course, one can’t construct a solid and sustainable building alone or with just anyone. It requires the unique contribution of a diverse group of professionals with specific areas of expertise — the creative vision of the architect; the construction team’s ability to execute; and the specialized skills of concrete workers, carpenters, roofers, and plasterers. And let’s not forget the importance throughout the process of interior design experts as well as the technical insights from structural engineers to ensure that the building is and remains hurricane- and/or quake-resistant.
So how does constructing a strong, yet flexible, building apply to CMOs and the relationship you should have with your CIO?
At Google I/O, the company managed to impress on a lot of fronts, enough that its stock began to climb as investors realized that Google is keeping up with — and in some cases, staying in front of — its digital platform competitors Apple, Facebook, and Microsoft. The new developer tools and resources announced will certainly lead to better apps, be developed more quickly, and be capable of generating more revenue. And consumer experiences in mobile, Google Maps, and the browser are about to get significantly more useful and elegant.
But one announcement debuted at I/O that doesn’t move the needle for Google — at least not as much as it could have — is the Google Play Music All Access pass. Despite the convoluted moniker, the service is straightforward: Pay $9.99 a month (in the US for now, more countries to come), and you’ll have unlimited access to a cloud-based music library with intuitive features that allow elegant discovery, consumption, and sharing of music.
If it sounds familiar, it’s because it is. The service can’t differentiate on its music library because the best it can do is license the same library that Spotify and Rdio already offer. All Access also creates playlists for you based on your music tastes as expressed by you directly or learned from your listening patterns and friends. That should also sound familiar because the same value is contained to various degrees in Pandora, iTunes, and Amazon Cloud Player.
Bottom line: Despite working really hard, the best that Google can do in music is to catch up to everybody else in the field. And that’s precisely what the company has done.
YouTube finally announced this week that it would allow channels to charge monthly fees to access content on YouTube. Some have predicted that YouTube’s subscription model would undercut its ad model in an echo of the infamous pay-wall problem that has bedeviled online newspapers as they shifted from ad-supported to paid. Others have suggested that this shows that YouTube is up against an advertising wall of its own making — advertisers will only pay so much to advertise against this amateur and semi-pro content (and to be fair, I am in this camp even though I don’t think this fact is dire). And still others gleefully wait to watch as YouTube learns how hard it is to get people to pay for things online.
In fact, all three of these things are minor asides in YouTube’s decision-making, as I see it. Instead of reacting to these and other constraints, YouTube is proacting on imminent opportunity. YouTube is basically making a grab for more of everything that matters:
More business model options. TV is both ad-supported and subscription-supported, and that works just fine. It gives companies like HBO the creative flexibility to generate content that advertisers may not be ready for, and it gives companies like Scripps the freedom to promise more home-focused entertainment that home-focused advertisers care about. That flexibility is crucial to the ongoing success of those companies, and it will be crucial to YouTube as well. Although in YouTube’s case, I would be surprised if the revenue balance in the one- to two-year time frame exceeded 10% or 15% subscription to advertising.
After 20-plus years of working in publishing for brands as diverse as Inc., Fortune Small Business, Money, Martha Stewart Living, and the mother of them all, People, I recently joined Forrester as a senior analyst serving Marketing Leadership Professionals, covering monetization strategies and technologies for publishers.
Understanding publishers and how they thrive as organizations and businesses is my passion. I believe in the value of the content they create and the audiences they amass around that content. I also believe that without publishers and the content that is posted, discussed, and shared, social would be a pretty boring experience. There wouldn't be much to search if not for publishers and their content. And, if user-generated content was the only environment for digital advertising, there wouldn't be many ads bought.
But today, despite their crucial role in the communication and marketing ecosystem, publishers are struggling to stabilize their business model. Since the advent of ad tech, they’ve been struggling to keep a grasp on their businesses, searching for ways to stem the precipitous fall in CPMs, and sifting through literally hundreds of vendors that are eager to offer their services as a partner.
In the coming months, I will focus my research efforts on initiatives that can change the game for publishers. My first three areas of concentration are:
Viewability, the upcoming implementation of an industrywide standard against which ads will be paid for based on a real opportunity for ads to be seen by users. This is the basis of my first report, which I expect to publish in the second half of May. I will share the key findings with you in my next post.
Audience extension, or how publishers find look-alike audiences to extend reach for their best advertisers. This report will follow.
After hosting a Forrester webinar on April 25 about "3 Ways To Turn Content Marketing into Thought Leadership", I received some interesting questions from clients. I thought I would share the questions -- and a short response to each – since this line of inquiry points to broader question about the role of public relations (PR) in content marketing generally and thought leadership marketing specifically.
Ask CMOs what tops their challenges list, and most admit that improving marketing's accountability ranks right up there.
B2B marketing execs worry about measuring marketing performance a bit more than B2C since a direct sales force and/or channel partners are largely responsible for the last mile of the customer purchase process.
Managing marketing performance is a perennial issue all marketers face.
Unlike revenue growth or margin, there are few accepted answers to the question, "What value does the business get from your marketing investment?" Typical answers focus on pipeline, which Sales then hotly contests.
Twitter #music is now out and people are abuzz about how elegant it is while also murmuring about what it means that Twitter – a company with no direct music expertise – is providing a music service. At the highest level, some are asking the question: is this the future of music?
The answer is simple. No, Twitter has not built the future of music. But that wasn’t the point. Instead, Twitter is building the future of Twitter’s customer relationship. It’s a significant difference in goals and it shows other wannabe digital disruptors some of the most important principles of digital disruption that you can follow, whether the adjacent possibility you will pursue next on behalf of your customers is in music or house cleaning or education. Here’s what to learn from Twitter’s music service:
Build a customer relationship to acquire data. In a digitally disrupted world, the most important asset you have is a digital customer relationship that connects to customers as frequently as possible and generates as much of a data trail as possible. Twitter has spent years doing this for millions of users, many of them who touch the service daily. It was only after this step was successfully completed that Twitter could look beyond it. That’s already a lesson for just about everyone else.