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This past week, GoogleTube started a sponsored video service for advertisers.  It only makes sense that Google is seeking to create some revenue from the site since purchasing YouTube for $1.65 billion two years ago.  The sponsored videos work similar to Google AdWords. Advertisers bid on search terms and in return YouTube serves up the advertiser’s video content based upon the on-site searches.  The medium is very new so there are not a lot of examples on the site yet, but this could be of real value to certain “visually stimulating” or vertical markets such as entertainment and recreation.

Now would be a great time to experiment with this new service for a couple of reasons.  First, the cost will be low as there will not be many competitors for adjacent placement at first.  Second,  most marketers will not be aware of this, nor will embrace this technology until it becomes mainstream.  Third there should be no clutter of “advertisements” which could increase effectiveness.  All of this assumes an appropriate message is developed and designed for the medium.

On Saturday, November 22nd at 7pm Central Time, YouTube will launch a new service called YouTube LIVE.   The service will provide live streaming programming.   The first event will be part concert, part variety show and part party.  It will bring together some of the videos and individuals that have contributed towards making the site what it is today.

Why is this important?   This year YouTube/Google made big strides in building infrastructure to sustain higher data throughput to support higher quality video streams.  Will this event be the culmination of their technical efforts to provide a high quality stream that would be accepted as an alternative to the television?  I think we will find out on Saturday as there has been a lot of buzz on the net, but no facts that I have found about the expected image quality.

Live, high quality image programming is another major step in the direction of making the Internet the delivery platform of choice for viewers, content producers and marketers.  If YouTube applies the model it has used since its inception, then content producers could, theoretically, more easily create an event online for a very specific niche at a lower cost for distribution.  Marketers could, theoretically, get instantaneous market analytics to become more effective and responsive to the consumer/viewer.

Still not convinced, check out the sponsors already on board, Lionsgate, Virgin, Guitar Hero, Flip, etc.

ABC, CBS, and NBC, are you ready for this?

For most companies this economy is raising lots of concerns and rightly so.  Along with the silent majority, I share the optimism that we are experiencing a market correction, masquerading as a recession.  Anytime you hear the word greed in play, a correction will ultimately be required.

Unfortunately greed is never a victimless sin (note I didn’t say ‘crime’ as there is a much higher price to pay).  Someone always pays the price, and this time it is significant enough that an entire nation has felt the blunt of the blow.

Regardless of  doom and gloom everywhere you look, the economy is still alive and breathing.  Someone, somewhere, right now, is buying from someone else.  That’s a fact.  Those who maintain during difficult times are the ones who are well positioned in the marketplace.  Now is the time to spend dollars on market exposure.  BUT, don’t waste your time and money if you are not well positioned, so the market will pay attention.  This means proving you are…

1. UNIQUE  from the alternatives!   What makes your products and services special?  How are you differentiated?  What can only you accomplish that few others, without your collective of resources and expertise provide?
2. COMMUNICATING your accomplishments!   Customers want to see demonstrated results that they can measure their expectations by.  Are you telling your story in the marketplace?  The age-old human tradition of storytelling is more relative than ever before.  And the best are repeated over and over again.
3. ESTABLISHED for the long term!   Consumers are attracted to winners.  Is your sustainability evident to others?  How may financial institutions are now being questioned solely on the basis of sustainability?  What are you doing to offset any concerns in your market?  Often overlooked, sustainability will evermore prove to be the greatest ’symbol of significance’ that most brands struggle to overcome.  (e.g. Apple, circa 1992)

When you are uncertain about your market, it’s time to examine your market-ing.   Unsophisticated companies tend to place blame on what they believe to be the  obvious, sophisticated companies realize they are the obvious.  Be proactive and prevent borrowing against your future to simply survive today.  Instead, invest today for your future.

I read this article recently and want to share an excerpt…

On the Road to a New Effectiveness Model: 

By: Anca Cristina Micu of Sacred Heart University &  Joseph T. Plummer of The Advertising Research Foundation

Consumers bring there own stories, experiences, and associations in their memories to ads, and may substitute their own elements into the unfurling drama to help it become more relevant or meaningful.  Testing with images and with verbal material has shown that consumers often remember elements in an ad that were not in it, and miss elements that were present.

The story the ad tells engages the consumer’s emotions and triggers stored associations, personal stories, brand experiences and images and generates that first emotional imprint in the brain.   Emotion involves the consumer and the ad’s story gets integrated in the mesh of memories and  schema in the consumer’s long-term memory.

Memories have a deep association with storytelling. To tell a story is to remember an important idea – we remember by telling stories – it is something we virtually have to do.   As agents of the larger society, stories help consumers create memories and hence define their self-identities and interpret cultural trends and rituals.

Companies use storytelling to shape the memories which consumers record and recall. Hence, the memory and meaning assigned by the consumer to a
brand is one co-created by the advertiser and the consumer themselves.

JUST WHEN YOU THOUGHT IT WAS SAFE…

Few consumers probably noticed this weeks announcement regarding the next generation standards for Broadcast Television.  The Advanced Television Systems Committee (ATSC) announced the new technology as  “a complete suite of ‘Next Generation’ services for the conventional fixed DTV receiver viewing environment.”  They call it A/72.

Just when you thought it was safe to buy a new television, another technology is announced.  But wait this is cool stuff.  Based on the MPEG-4 standard, this new technology allows larger files to pass through smaller spaces, and it’s scalable.

HIGHER THAN HIGH DEF?

Of course!  You didn’t think that Blu-Ray DVD and 1080p HD was the final destination did you?  What happened over the last 50 years in broadcasting will happen again.  A broadcast format relies on standards that are fixed, whereby television sets and set-top boxes expect to see a certain type of signal required to create an image.  And that is what all the fuss has been about since the late 90’s when the FCC announced the end of analog television.  But technology advancements never stop.

ENTERTAINMENT ANYONE?

As analog technology has slowly retired over the past few years it has taken a few debatable formats with it. Think film!  However, the movie you see tonight at the theater will still most likely be projected by an analog film system.  Why, because it is higher than High Def.  And in reality, Hollywood wishes it wasn’t so.  Maintaining analog technology in a digital age becomes evermore expensive.  Obviously the ultimate goal is to push all digital content via an internet protocol.  And that is why this announcement is so important.  A scalable format using smaller file sizes?  And capable of breaking through the resolution ceiling?  Count me in.

For several years now our industry has used cameras capable of shooting at higher resolutions than HDTV.  Why, because we can, and it looks better.  Now sit back and watch manufacturers race to bring this new technology into the home.

Here we go again!

It’s been two years since Google bought YouTube for 1.6 Billion (yes that’s a ‘B’) in stock.  Skeptics crucified the deal saying it was over priced.  At that time YouTube was serving over 100 million user generated video streams. That’s a third of all video streams on the web.  The closest competitor, Yahoo, has only six percent of the web video market.

YouTube’s earnings for 2009 are expected to top 500 million.  How’s that for a Blue Ocean startup based around Affinity groups wanting to connect and share content based on interest.

Earlier this summer CBS paid 1.8 Billion for CNET Networks.  Not much was said about that deal.

The rise of the new consumer continues to be an amazing transformation.  And none of this would be possible without the affinity minded consumer.

Our Family has a Sunday tradition of eating lunch at McDonalds. My wife and I relax, read the paper and chat while the kids enjoy the play area. We have been doing this for years.

This past Sunday something interesting happened. Our 5-year old had gotten hurt and so my wife was carrying him, and she struggled to get the door open. I was following, wrangling the other 5 kids, and looking ahead I noticed the manager standing a few feet from the door watching her.  With no else around, he just stood there.  He didn’t lift a finger to assist…not even a twitch, comment, or “welcome to McDonalds”.

One of the primary reasons our kids enjoy this particular McDonalds is they offer mini ice cream cones for free. Fifteen minutes before we leave, I call out “ice cream time” and the kids get all excited and head up to the counter to get their weekly treat; noses barely poking over the countertop like small dogs trying to get morsels from the table.

Suddenly, the unbelievable happened. The manager informs us that free ice cream is only for ‘Happy Meal’ customers.  I instantly realized I was on the loosing end of poor customer service

For me, this event brings to light how important it is for companies hoping for Affinity Brand status to focus on customer service; not just ordinary “have a great day and congratulations, we got your order right“ customer service but “WOW, they really care about me” customer service.  Clearly, the manager doesn’t see a residual revenue stream where satisfied customers brag to other parents about how great they treat you at this particular McDonalds.  He only sees a family that buys hamburgers. My guess is that he has never taken the time to look at the name on the debit card so he can spontaneously say “Thanks for coming in today Mr. LaTessa.”

Let me make something perfectly clear. We love McDonalds and we generally deal with great, friendly, hard working staff. We also don’t have any unrealistic expectations about what McDonalds is going to provide us.  McDonalds will never (and can never) be an Affinity Brand. They are a brand built on convenience and nothing more. They succeed, not because their brand is timeless or of particularly high quality or because they have a committed group of followers; they succeed because their product provides a quick easy meal. There is nothing wrong with that, but if I had a product to brand, that is not the way that I would want it perceived.

Oh…by the way, the kids got their ice cream. My wife is an amazing persuader.

If you have ever had the opportunity of experiencing some of the best affinity brands in the world, you will notice one thing they all have in common; AWESOME CUSTOMER SERVICE.

You might have guessed QUALITY. And that would be a great guess as they share that as well. But today, we are talking about CUSTOMER SERVICE.

There is a significant difference between ‘the customer is always right’ and ‘the customer is always impressed’.

The best affinity brands put much more effort into impressing customers than they do trying to ensure customers are always pleased or happy. You cannot control the customer, but you can control your customer service efforts. Many times impressing the customer does as much to distract the customer from any issues you might have as it results in pleasing the customer.

Today, I walked into the Ritz Carlton hotel in San Francisco. From the time I gave the valet my car keys to walking inside to the registration desk could not have been more than 90 seconds. In those few seconds we were greeted by name, no less than four times. “Welcome Mr. & Mrs. Smith”. Sure they were all wearing ear monitors taking cues of our presence as we entered the hotel lobby, but most impressive to say the least. They could have said my room was not ready, or that I had to sleep on the floor. It wouldn’t have mattered. I was so impressed and cared for at that point, I could only focus on the details of how well we were being serviced.

Interestingly, a half hour later we received a call from the Intercontinental Hotel in Monterey (where we had just left), asking if our stay had been pleasant and suggesting that we were always welcome back. Later in the afternoon, my wifes cell phone rang and it was Land’s End clothiers asking if she had received her recent online order, and if she found everything to her ’satisfaction’.  Wow!  Now that’s customer service.

So, what did these efforts cost? Really very little, because these customer service tasks are part of the on-going processes already in place at each of these great companies. First and foremost, they each were using their human resources to make the connection. Next, they were timely in their execution.

ARE YOU LISTENING? Customer Service costs very little - and pays significant dividends! And it is a primary characteristic of Affinity Brands.

Watching the MTV Music Video awards this year was like witnessing a sincere best-effort attempt that failed. Let’s see, they only give out 8 awards on the broadcast and Britney Spears won 3 of them. Hmmm? Somewhere between Britney’s comeback speech and the outright disparaging remarks toward the Jonas Brothers’ purity rings - the program was dying a slow death. And they knew it.

And they have so many resources to work with. It remains an in-demand event. Filling seats with superstars is not a problem - yet.

Someone, who will remain nameless, walked into the room while I was suffering through the program and politely said,”too bad they have no Talent to work with!” I responded ratherly frankly, “there’s a big difference between Talent and Bravery. Bravery trumps Talent every time.”

I am continually amazed at the genuine talent in todays society. When I was in high school there may have been 3 of us that played guitar in the entire school. Today, two out of every three kids play guitar. And they really are better than we were.

With so much talent to go around, it’s simple - bravery wins out. Those who find opportunity do so because of their bravery toward exposing their talent to the masses. Real talent doesn’t dismiss stage fright.

So where does this leave MTV. To blame, I guess. It’s obvious to all of us, they had plenty of brave people in the room. This thing died long before it aired.

So I’m asking myself the question, “can presidential candidates actually be affinity brands”?

I spent a few hours on the road today and saw plenty of political bumper stickers. It appears that everyone driving a Toyota Prius is voting for Barrack Obama? What does this mean?  Is this reality? Scientific? Is Toyota passing out bumper stickers with every new purchase?

I realize not everyone driving a Prius will vote for Obama, but what I saw today would pass the test of market sampling, including margin-of-error.  Sure, I am intrigued by data and too often ask the question, “why?”

Of course Lifestyle ‘perception’ is a large part of affinity brands, but what is the basis for this connection with Obama? Is Obama the affinity brand, or Toyota Prius, or both?  I’ve heard both candidates suggest they will attract all audiences. Is this really possible?  Not for affinity brands!

And apparently not for Prius owners.

One of the things I most like about Affinity Brands is that they have to be grounded in ‘user verification’.

This really isn’t something that can be fabricated by marketing promotion. We regularly talk with companies seeking to transform their brand into an Affinity Brand, but the truth cannot be altered. Either your products are user-verified, or they’re not. So which is it?

Sure, we enjoy engaging those brands that are yet to be verified, and we really enjoy the discovery of those that eventually prove to be so. No doubt, there are many advantages for Affinity Brands in today’s marketplace. Consumers are looking for those brands.

Quality.

Community.

Timeless.

In recent months, the protocol for identifying specific members of a target audience is shifting dramatically. I saw a great example recently, it is the online, community-based tool called Jigsaw. It is the first online tool of its kind to mature to the point where its impact in the B2B marketing space will soon be felt. In the past, companies like Hoovers and OneSource have provided “all-you-can-eat” detailed prospect lists usually for an annual membership fee, usually costing thousands of dollars annually. For smaller B2B businesses, these fees are simply not part of the budget. In addition, traditional information resources are only able to update the information quarterly or yearly. This is unacceptable.

Again, we see the model changing by making access to the data free of charge. For Jigsaw, it is a points based system where you earn points for making contributions to the database. The more data you contribute, the more points, or credits, you earn. This model encourages members to submit information from their own CRM. Now: the information you have provided, such as a valid email address, is now up for grabs to anyone using this free Internet tool. So, once again we face a privacy issue. Read on.

The most important thing we should all learn from this is that your information will be out there quicker than ever before. It is logical that this model will eventually include consumer personal information. Does that scare you? It shouldn’t. The more information a marketing organization has on a contact, the more relevant their communication will be with the consumer. (usually including a value exchange) ROI and technically-savvy business development teams will gravitate towards these tools and eventually, we all agree the broadcast method of marketing will go away.

The benefit? Your direct mail and email solicitations include only the content you’re interested in. So go ahead and express your business and personal interests in these tools voluntarily. Don’t you think Facebook and Linked-In are already determining your preferences, trends, etc.?

I’m sure you’ve all heard Starbucks is closing 600 of its stores. What I was surprised to find is that it probably has little to do with the economy and more to do with how they grew. In particular, this researcher’s quote from an article I read struck me…

“Passikoff said Starbucks tried to migrate its coffee brand into a lifestyle brand. ‘They came out with the movies and the books in the stores. There’s nothing wrong with that aspiration. But as part of this, they essentially took a step away from the core quality of the brand, which was the coffeehouse experience … What essentially they did overall was re-engineer the experience right out of the stores. So customers were standing in line, and there was no experience anymore. They were too much like everyone else.’”

As my company continues to focus on marketing for Affinity Brands, I think this goes to show how important it is to stay objective and keep it real. More isn’t always better.

Starbucks will bless a new generation of inbound Marketing students with yet another case study … unfortunately, not with another home run. Doing too much may have proven to degrade what made the brand affinity-worthy in the first place.

(Of course, this lapse in marketing judgment won’t stop me from my occasional non-fat hazelnut latte. Mmm.)

Here’s a link to the full article if you’re interested. http://www.star-telegram.com/business/story/742107.html

Whenever government or business suspects fraud, auditors never rely on testimony, hearsay, or opinion; instead they follow the money trail. Follow the money and you will find the motivation. Does your marketing motivation reflect your investment?

Sure, we follow Process for effective campaigns, but in the end after much discovery, diagnosis, and a prescription, you will still ask, “did we make the necessary investment for success?” A client of mine used to always ask me after establishing his annual budget, “what would the next thousand dollars buy me”? He understood buying power, and recognized that the last dollar always buys more than the first.

If you’ve ever built a house you understand this fact. Once the foundation, walls, and roof are complete, the rest is aesthetic. But it is also that which we receive the most daily enjoyment from. And as you would give caution to ‘over’ building in your neighborhood, similar caution should be given toward establishing your marketing budget.

The good news is that we can follow historical industry benchmarks for determining an appropriate budget. The bad news is that these same industry benchmarks include data from companies who have failed to spend appropriately and ultimately may have returned poor results.

The answer begins with effective Discovery. Begin every campaign with the due diligence necessary to identify the options for accomplishing stated goals. And just a little reminder: effective Discovery always begins solution-neutral. Self-diagnosis is the ‘cardinal sin’ we most often see committed by new clients. When you are consumed by the latest trend, every problem seems to require a trendy solution.

• First, make a commitment to honest Discovery.
• Second, trust the experts to Diagnose the symptoms.
• Third, commit to what the experts Prescribe.
• Fourth, Evaluate regularly and react to necessary change (p.s. expect change).

“For where your treasure is, there your heart will be also.” (Luke 12:34)

Have you noticed the number of ads reminding us that come February 17th, 2009 you will no longer be able to view television? The ads have been startling to some that do not understand fully what it all means. Even I am confused by the language of the ads I’ve viewed on the transition.

Neilson says approximately 17 million households receive their TV signals off-air. The FCC has allocated $40 subsidies for over 33 million households to purchase set-top converter boxes.

Unfortunately the highest segment of TV viewership will be affected the most. AARP reports ’silver’ Americans over the age of 50 watch an average of 5.5 hours of Television everyday. This is also the segment most represented in those receiving their only signals off-air.

Should we be concerned? You better believe it. The silver demographic represents the majority of those targeted by these ads. What we don’t know is how consumer purchases might be affected should this demographic suddenly go off-line. No TV signal means No Viewers. No Viewers means No Advertising. No Advertising means No TV. Get the idea? It’s a vicious cycle, but one that has been working successfully for a half century.

(NOTE: Viewers can register online or call 888-DTV-2009 for FCC DTV subsidy coupons.)

MORE THAN PRODUCT PLACEMENT…

We’ve all heard the term Product Placement and have easily identified embedded products when watching movies, television, or gaming. Early on, this trend began intentionally as part of effective scripting. Usually intending to catch the audience’s attention or to create a humorous moment; reminding the audience of their current reality. Remember E.T.’s Reese’s Pieces?

ENTER BRANDED ENTERTAINMENT…

More than sponsored product placement, think of creating your own content, where subject matter revolves around your brand, at minimum “branded presentation”. It’s Product Placement evolved, but more effective for those willing to control the story and underwrite the content production & development. Not as expensive as it used to be, more channels to access than before, and more talent to tap. It can only make sense.

REVENUE STREAMS?

Could your product (or service) support branded entertainment content? (Affinity brands regularly meet the requirements.) How about an original movie? TV Series? Direct to DVD? YouTube Short? There’s a media channel for every budget and comfort zone. If you have the opportunity - take it!

THE PIXAR TOUCH

I’ve just completed the book ‘The Pixar Touch - The Making of a Company‘ by David Price. It’s an interesting read that everyone involved in developing a company should read. I was reminded of three things… 1) the journey is never what you intend or predict, 2) the world is indeed small, and 3) significant outcomes require significant talent.

INFLUENCING POP CULTURE

Few companies have influenced pop-culture as much as the companies so carefully connected in this book. Companies like Apple, Disney, LucasFilms, Microsoft, etc. Throughout their development in the 70’s and 80’s these companies regularly came in contact sharing ideas and even personnel.

REAPING REWARDS

It’s fascinating that none of these companies were working within an established industry, rather, they became the establishment. As a result they reaped many rewards.

Yes, it is a USB memory ’stick’. Literally. At first glance it might suggest that memory grows on trees. Hah. I found this recently on the web and thought is was worth sharing. It is made by a company called Oooms located in The Netherlands.

Oooms markets various interesting designed products. Check them out.

A great example of a company that focuses on a niche market of unique products.

Three ‘musts’ for effective marketing…

• Differentiate
• Demonstrate
• Sustain

In the words of Dr. Phil, “how’s that working out for ya?”

HAPPY 4th!

After a busy day of fourth-of-July activities; hot dogs and burgers on the grill, a cool swim after riding dirt bikes… everyone worked up to the big finale, the annual city fireworks show on the edge of town.

It’s a huge event, everyone is goes. The fireworks are spectacular and usually last an hour or so. The local radio station simulcasts patriotic music so you can crank the car stereo and enjoy the big event with all your senses. Seeing the burst of color, explosions that rock your lawn chair, being so close that you can feel the heat and smell the gun powder. In fact, you better keep your mouth closed or you might get a taste of it as well.

So, we’re ready to go, the kids are in the car.  Oh wait… I just remembered, we stopped at a road-side stand earlier and bought fifteen dollars worth of sparklers, smoke bombs, and some spinners that whistle?  Okay kids, who wants to stay home instead, and make our own fireworks show? A few pops and a sparkle; overcome with smoke, and three duds that won’t lite?  We’ll miss the big event?  There will be lots of people there?  Music on the radio?

It’s the difference between going to the zoo, or going to the petting zoo.  Guess which one wins out every time?

Affinity brands create brand-experience.

One of the benefits of affinity brand marketing is that our work usually has less to do with actual products and more to do with the community or environment surrounding a brand; and that is where ‘affinity’ comes in.

For years I struggled with identifying Premier Studios as a marketing company for fear of anyone insinuating that we ‘prop-up’ brands or products. I have never been comfortable with the reputation many marketers have for ‘manipulating consumers’. You know the drill; presenting products as more than they really are. Okay… lying about them. I know you’re shocked and can’t imagine that such an honored profession would stoop so low.

Remember, affinity brands eschew quality! Customer service is usually exceptional, even sometimes legendary. Three certainties of affinity brands… quality, community, and timeless. So where does that leave us? Our expertise is about everything surrounding the brand. And those surroundings are what makes brands thrive.

If every brand were an affinity brand, we would live in an honest world. Affinity brands are usually those products and services that owners speak proudly of, and are eager to defend. Marketing for affinity brands is about creating community and a place for the brand to thrive, sometimes in the digital space, but not always.

But what about those other brands? Those that aren’t quality, and few people would admit to owning. Usually the lowest priced, and perceived as a bargain. You know who you are. Don’t call us and we won’t call you…

AFFINITY BRANDS = LIFESTYLE

We all have them. Those brands in our lives that reinforce our ideals of who we are. As a brand enthusiast, you belong and relate to a group of other like-minded individuals; earnestly blazing the trail, championing what? Affinity brands! The most elusive, yet lucrative, brand category today.

While Apple has only 8.1% of the market, it is those individuals that make up the 8.1% that matter. They are the ‘it’ crowd. They are 9 of 10 college students who carry laptops, and 40% of students planning to purchase a computer. Only 8.1% of the market you ask? But look at who the 8.1% are.

That is what makes an affinity brand so special. Market share is meaningless to affinity brands. In fact, a strong attribute of affinity brands is that they are sometimes perceived as having limited availability, or even exclusive in the market.

CONSPIRACY?

So imagine for a moment if Apple held more market share than any other computer manufacturer. How would that change your perception of the perceived cult following. I smell a conspiracy! Intentional? Absolutely not. Affinity brand marketing? You betcha.

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