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Seth's Blog : Advertising's hidden design and its impact on our culture
Advertising's hidden design and its impact on our culture
Media changes everything. Media drives our expectations, our conversations and our culture.
And what drives the media? Ads.
Two kinds, it turns out: Brand ads and direct ads. Brand ads are the unmeasurable, widely seen ads you generally think of when you think of an ad. A billboard, a TV commercial, an imprinted mug. Direct ads, on the other hand, are action-oriented and measurable. Infomercials, mail order catalogs and many sorts of digital media are considered direct marketing.
It takes guts to be a brand marketer.
What's the return on a $75,000 investment of a full-page ad in the New Yorker?
What's the yield on a three-million dollar Super Bowl commercial?
We have no idea. Brand marketers don't do math. They pay attention to the culture instead.
On the other hand, it takes math to be a direct marketer.
What's the yield on this classified ad? How many people used that discount code? How many clicks did we get?
The challenge of new media is this: Media companies can't figure out if they're selling brand ads or direct ads. And many who want to buy these ads can't decide either.
At the beginning of most sorts of media, it's the brand marketers who go first. The first to buy banner ads, or podcast ads or Facebook ads were brands with a budget to spend on new media that was esteemed by early adopters. MailChimp gets a huge benefit by sponsoring podcasts, but they can't measure those ads. And that's fine with them.
The next wave that hits new forms of media, almost always, is the seduction of the direct marketer. That's because direct marketers always have plenty of money to invest in ads that pay for themselves. The thing is, though, that direct marketers don't care about the medium, they care about the response. As a result, there's a huge gulf, a tension between what the medium wants (a great podcast, a website with authority, a social network with character) and what the direct marketer wants (measurable clicks).
Consider this: The best direct marketing advertising media is permission based. Ads where the ads are the point. Ads where the ads are not only measurable but the focus of the experience. Classified ads. Craigslist. Catalogs. The coupons in the Sunday paper. The Yellow Pages. Google AdWords. These are all forms of advertising we might miss if they were gone, and they are all forms of measurable direct marketing.
The best brand media, on the other hand, is media that informs and entertains despite the ads, not because of them. These podcasts, newscasts, blogs and magazines often run ads as their business model, but the ads don't drive the product, it's the other way around.
The actionable steps:
a. If you're a media company that one day wants to be respected enough to attract brand marketers, refuse to maximize the clicks. The direct marketers will push you to develop the equivalent of classified ads, of Google Adwords--ads we want to see merely because they're ads. These are the most effective forms of direct marketing, because the people who look at them want to look at them. It's a form of Permission Marketing, and it works. But a short term focus on yield doesn't lead to a great podcast, and too many clickable popunders has been the demise of many a trusted website.
b. If you're considering buying ads, be super clear about what the ads are for. Just because you can measure clicks doesn't mean you should. It's that middle ground, the netherland between direct and brand, that leads to disappoint, both for you and the media company.
The challenge:
a. If you're a media company (particularly a website or a podcast, but possibly a conference or a magazine) and you're hungry for advertising, you'll soon end up hearing from direct marketers who want you to sacrifice your long-term standing with readers and attendees in order to make their clicks go up, who want more coupons redeemed and more short-term results. Try to remember that these advertisers aren't sponsors who care about your status or long-term prospects, they are direct marketers who will switch to a better yield the moment they can. That's the direct marketer's job.
b. If you're a direct marketer, your peers are going to push you to make ads that are more palatable to a brand marketer's sensibility. The problem with this, of course, is that you'll end up neither here nor there. You won't be culturally embraced the way an actual brand marketer can be, and you won't generate the yield you were looking for.
I've been a direct marketer for a long time, and it's entirely possible that I'll get kicked out of the hall of fame for saying this, but the fact is that the media that shapes our culture was not invented for or by direct marketers.
Now that digital media is becoming a significant driver of our culture, I'm concerned that more and more media companies are hoping to get paid by direct marketers. That's never been a good match.
More Recent Articles
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duminică, 8 noiembrie 2015
Mish's Global Economic Trend Analysis
Mish's Global Economic Trend Analysis |
Rupture in Spain: Catalan Parliament to Vote for Independence Posted: 08 Nov 2015 08:28 PM PST A major showdown with Madrid is in the works as the Catalan Parliament to Vote on Independence from Spain. The Catalan independence campaign heads for a potentially perilous new phase on Monday, as the regional parliament prepares to vote on a resolution to "disconnect" from the rest of Spain and renounce all rulings from the country's constitutional court.What's Next? If the vote is for independence, what will Spain do? Call out the army? What will president Obama say? Is it acceptable for the US to back Egyptians demanding a government overthrow, and orchestrate a coup in Ukraine, while denouncing the right of self-determination to Catalans? No, it's not acceptable, and it is hypocritical, but it's exactly what one should expect. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
Posted: 08 Nov 2015 09:22 AM PST The recent Portuguese election on October 4th were "inconclusive". The center-right scored the most votes but could not muster a coalition majority. A coalition of leftist parties could form a government, but the president of Portugal (a largely symbolic position except in cases like these) refused to appoint a leftist prime minister on the grounds that they represent anti-European forces. Instead the president allowed the pro-EU Prime Minister to stay in place. That government will fall this week, but first let's recap what Nigel Farage said about yet another Eurozone puppet government. Modern Day Brezhnev Doctrine Review Please consider Nigel Farage Speaks Out on the Situation in Portugal. As this migrant crisis begins to overwhelm the European Union, and yes it is an existential crisis, perhaps we should ask ourselves what really is the true nature of this project? Because I've heard a lot today about rights, well what about democratic rights? Because I think what we are seeing is an increasingly authoritarian European Union that crushes democratic rights and then actually crows about it.Anti-Austerity Socialists Topple Portugal's Two-Week Old Government Today, the Financial Times says Leftwing Alliance Set to Topple Portugal's Government. An unprecedented alliance between Portugal's opposition Socialists (PS) and the far left is poised to bring down the country's two-week-old centre-right government this week and replace it with an "anti-austerity" administration.Costa says he is committed to keeping the country in the eurozone and will respect the three percent budget deficit rules. However, I highly doubt he can raise wages and benefits for public workers and simultaneously keep that fiscal promise. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
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Seth's Blog : The simple way to get better at business writing
The simple way to get better at business writing
Don't do business writing.
Have you ever met someone in industry who talks like he writes? You visit a store and the person says, "effective January 1, 2015, we have ceased operations at this location. For further information, correspondence should be addressed to our headquarters." Of course not. That would be awkward.
Write like you talk instead.
"We closed this store last year. Sorry for the hassle, please call us if you have any questions."
With effort and practice, it's possible to speak with respect, precision and energy. After you speak that way, write down what you said.
That's effective business writing.
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sâmbătă, 7 noiembrie 2015
Mish's Global Economic Trend Analysis
Mish's Global Economic Trend Analysis |
Posted: 07 Nov 2015 06:47 PM PST Robot Theory The battle of robot theory is on. Bank of America paints one picture and McKinsey another. Let's investigate both theories. Automation Will Change Jobs More Than Kill Them As reported by the New York Times, McKinsey says Automation Will Change Jobs More Than Kill Them The report, published on Friday and written by two members of the McKinsey Global Institute, the consulting firm's research arm, and another McKinsey employee, adds a twist to the debate over the likely nature and pace of automation in the workplace.McKinsey Report Inquiring minds may be interested in the actual report. If so please consider the Four Fundamentals of Workplace Automation in the McKinsey Quarterly. Compare and contrast that viewpoint with that of Bank of America. Robots Will Change World Beyond Recognition Says BoA The Telegraph comments on the viewpoint of Bank of America in Robots May Shatter the Global Economic Order Within a Decade. Robots will take over 45pc of all jobs in manufacturing and shave $9 trillion off labour costs within a decade, leaving great swathes of the global society on the historical scrap heap.Deflationary Force Regardless of which viewpoint you think more likely, it should be perfectly clear that robots are a huge deflationary force. The Fed's (central bank's in general), that the global economy needs 2% inflation is 100% absurd in the face of such forces. Attempts by the Fed, by unions, by Obama, and by those screaming for a $15 "living wage" are totally counterproductive. The higher the wage inflation, the greater the incentive to replace workers with robots. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
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Seth's Blog : Variations on stupid
Variations on stupid
We throw the word stupid around a lot, labeling people (perhaps forever). In fact, there are tons of ways to be stupid, and we ought to think about that before we shut someone (including ourselves) down... Stupid is something we do, not the way we are.
Bad analysis is the classic sort of stupid. This is not the stupid of, "if you knew then what you know now," but the simpler question: "Given what was clear at the time, why did you make such a bad decision?"
Willfully ignorant is the stupidity of not seeking out the information that would have been worth knowing before you spoke up, made a decision or pulled the trigger.
Lack of cultural understanding is often mistaken for stupid. This is what happens when we put our foot in our mouth. Often, it seems particularly stupid when we're willfully ignorant about something we should have known.
Inability to read people isn't a form of stupidity, but it can often look like it. Some people are just unable to do this, but mostly it's a lack of effort and empathy that leads us to not see people in a way others think we should.
Distracted is the best excuse for making a stupid call. After all, when the stupidity happens, it's probably because we didn't think the decision was important, and with all the incoming. Okay, it's not a good excuse, but it's a common one.
Self-destructive is a particularly widespread form of stupidity among people who have privilege and opportunity that they're not sure they deserve.
Emotionally overwrought stupidity happens because we're tempted to amplify and maintain the drama going on in our heads, which distracts us from seeing or processing what we see.
Fear, of course, is at the heart of a lot of our bad judgment.
Unwilling to be right is a form of fear. If you do stupid things, you don't have to take advantage of the change that would have happened if you had been right.
Slow is not stupid, not at all. It's just not going to win you many prizes on a game show.
Short-term selfish behavior is what we see all the time from people who should know better. And yet they come back to this trap again and again, because it's a habit. Day trading, anyone?
Rush to judgment is a particularly challenging variation. Our unwillingness to sit with ambiguity causes us to decide before we should.
Stupidity doesn't have to be incurable.
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