Pat's Blog Archives

September 9, 2007

The Apple Flap

I don’t worry that Apple has gone rotten. I don’t think Steve Jobs has gone mad. I do wonder if Apple has taken a very strange gamble by reducing the cost of their iPhone by $200 bucks so close to its release. Naturally, early adopters are outraged.

The web sizzles with bloggers pledging mutiny from the good ship hip. After all, that’s what Apple always got right—the passion of consumers driven to differentiate themselves as non-conforming creatives—the ultimate hispters.

As I sat in my car listening to the radio banter about Apple’s daring move to cut the iPhone’s price, I watched the wooden gate the end of my driveway bang against the frame—my daughter must have left it open. The old hardware on the gate wore out long ago. I keep meaning to fix it. We use a bungie cord we jokingly call “the software” to fasten it.

If technology is a tool, Apple made it an idea. For that, they charge a premium. Now, they are testing new ground. Either they are cashing in on the broader audience of consumers wanting to join the ranks of the creatives—people who rebel against PC dronyism…or they are attempting something else. Perhaps the company is testing to see what the Applytes will give them permission to do. How far can they go jiggering with their recipe of sleek design and free-range interface for distinctive users to go mass market, which demands a lower price point. I plan to stay tuned rather than assume Apple rotten to the core.

September 5, 2007

When Cool Gets Hot

I’ve observed that cultural consumers attach more “identity” to their music, art and fashion than do other consumers. A new Stanford University study, published in the Journal of Consumer Research, explains why. The research explores why consumers conform to groups that are hip or cool, but diverge or change their preferences when their choices get adopted into the mainstream. Consider that “identity signaling,” as it’s called, explains why cultural consumers remain loyal to a genre -- say punk rock, for instance -- but shift their preferences of favorite artists frequently. Hat tip to Dr. Bruce Vanden Bergh at Michigan State University, for pointing me to the study. Full title of the report for anyone who wants to learn more: “Where Consumers Diverge from Others: Identity Signaling and Product Domains” is published by Jonah Berger and Chip Heath in the August 2007 issue of Journal of Consumer Research, Volume 34.

August 30, 2007

Labor Day Message for Would-be Writers

Hopes and dreams matter. It is well known that one of the most powerful forces in marketing is aspiration. When consumers aspire to a certain state or lifestyle, it opens an emotional channel for marketers to relay messages aimed at those aspirations. A recent study in England of peoples’ career aspirations revealed “More Britons dream about becoming an author than any other job,” reports a new survey reported in the Guardian (“Writing tops poll of ideal jobs,” by Michelle Pauli).

Reading this study gave me pause. As the end of summer nears, I am getting ready for the national launch of my latest book, RenGen: Renaissance Generation. So many people have approached me with their own book ideas. I am impressed with all the thinking going on . . . and dreaming. Truth be told, writing a book is a mission -- not a monetary exercise. That is unless you are amazingly gifted or flat out lucky, or both. What drives the process for most writers is the quest, the mystery to be solved, and the unquenchable desire to write, write, write and then put it out there. Otherwise, as Bill Clinton surmised when he totaled the number of hours spent writing his memoir divided by his compensation, he was making about minimum wage.

To anyone nurturing the aspiration to write, I say be about it. I hope it’s a labor of love.

August 27, 2007

RenGen: How Young are We Talking?

I get asked a lot about the age range of the RenGen? Is the renaissance generation the rising crop of highschoolers or 30-somethings, or what? RenGen is an outlook as much as an age group. Generally, the term “generation” covers a swath of people living contemporaneously in a 30-year span. Specifically, people driven to do original work, people who enjoy hatching and exchanging ideas, people who dive in and spend hours blissfully creating something from nothing—all share a place on the RenGen spectrum. Even guys as young as JJ and Charley from Maryland's Eyeball Skeleton pop band fit the profile. JJ Brown is eight and Charlie Brown is ten. Their Dad plays drums and runs the sound equipment. The band’s collaborative process begins with an image and title hand drawn by JJ or Charlie, who then write the lyrics. Over waffles and coffee with Dad they fit their lyrics to music. Eyeball Skeleton recently signed with My Pal God record label, run by a Northwestern student, also a RenGenner. My personal favorite is their tune “The Smoking Turtle.” Check it out.

August 21, 2007

The Not So Big Life

I was on a United flight recently, and flipping through Hemispheres magazine, I came across an article from one of my favorite architects, Sarah Susanka. She authored a series of best-selling books themed around the “Not So Big House.” In the article, she made a plea for the “Not So Big Life.” Instead of the constant more, more, more of our overstuffed lives, Susanka called for a scaling back, a cozying down into lives more serenely simple. Susanka made herself a student of the cultural consumer back in the 1990’s by embracing Paul Ray’s book on Cultural Creatives. Today, her home designs are in high demand in large part because she caters to the cultural consumer. So, she’s very busy. In these last few days of summer, I share her sentiment. I need to slow down, drink tall glasses of lemonade and watch the kids laugh and play on the lawn. I wish you the same. Let’s enjoy what’s left of our “Not So Big,” summer.

August 20, 2007

Farewell

I was sad to learn that the artist Elizabeth Murray died. She was a force. I met her in 1993 by a stroke of luck. She was visiting her alma mater, the School of the Art Institute, where I was working my way up to who knows what. She was supposed to have lunch with the dean. He had to cancel and I got to replace him. Lucky me.

I took her to a swanky Italian place and over plates of overpriced pasta we chatted on and on. Her piercing blue eyes held me transfixed. She told me about her impoverished childhood and how her art teacher saw talent in her and paid the application fee for the School. Her long grey hair was unruly and occasionally she tried to restrain it with her hands.

I was a young working mother at the time, and we talked about that juggling act. She painted at night when her kids were asleep. She did that until they were teenagers, so sleep deprivation became a way of life. I admired her grit, not to mention her talent. Asked to comment on her career, Chuck Close, the famous portrait painter and friend to Elizabeth Murray said there was only one reason he could see that Murray wasn’t more famous—she was a woman, he told the NPR reporter. She was 66.

August 14, 2007

On Becoming a Fan

Everyone’s a fan of something. We all know the feeling being enrolled as part of something cool and expansive. If it’s done right, it is a seamless progression. Turns out there is a science to it. Check out the diagram authors Ben McConnell and Jackie Huba are featuring on their site. It plots the step-by-step process of the Cycle of Fandom. http://www.churchofthecustomer.com.

August 9, 2007

Who Gets To Drive the Vision? Nardelli Gets the Keys

Nearly everyone in my family works in the automotive industry. They’ve been sharing opinions, most of them negative, about the Daimler Chrysler merger since it happened. So the news of the sale to Cerberus Capital and the hiring of Robert Nardelli, formerly the embattled CEO of Home Depot, stirred the pot and emails came flying into my box. My question is this: I wonder how Nardelli will help heal the biggest wound the Daimler Chrysler marriage inflicted—to wit, the clash cultures. Chrysler employees were devoted to design and marketing. Daimler cared about production and performance. As my family explains it, Detroit has come to see the future of automaking in the thrill of design—the car is a means for transporting people into their aspirations. It’s a renaissance idea, really, that taps into earlier roots from the 1950’s and 60’s, when cars were designed with that spirit in mind. Daimler, I am told, looked for soulless efficiencies and manufacturing tweaks. No sizzle there. Chrysler employees felt dissed, their ideas discredited.

Since Nardelli has a history of focusing on both performance, design and experience marketing—his sponsorship marketing portfolio was aggressive, and his cunning use of in-store DIY workshops for women and kids gave participating store a 30% bump in sales--he may be the perfect cure for what ails Chrysler.

August 2, 2007

New Watchword

On her way home from a conference, a client phoned me from the airport. I asked how it went. She said the brouhaha about change and global economic shifts were stressed by every speaker. Overwhelmed, the attendees started calling it “bullshift.” Is there an anti-hype cycle that can be plotted for the welter of doomsday discourse out there, I wonder, much like the Gartner Hype Cycle?

July 27, 2007

RenGen Thinking Seeps into University Publishing

More evidence that the “conversion” is building momentum toward a renaissance: a new report about ”University Publishing in a Digital Age” was released by a group of experts on scholarly publishing--it asks the ivory tower to make radical changes in the way publishing works. The report--from Ithaka, a nonprofit group that promotes research and strategy for colleges to reflect changing technology--is based on a detailed study of university presses, which morphed into a larger examination of the inter-relationship between presses, libraries and their universities. Essentially, this network represents intellectual backbone of our civilization.

Consortium models have worked well in the past for similar institutions. Look at the success of OCLC. The efficiencies achieved, not to mention the collective muscle the collaboration builds, might help fund technological and marketing functions that most individual presses cannot afford.

But what's really at stake here is relevance. The audience for scholarly ideas is growing outside the walls of the academy. Look at the success of professors such as Richard Florida, Tyler Cowen and Jared Diamond. Universities need to get on board to catch the wave. Or, hunker down into a publishing status quo where 70 percent run a deficit, and most leach support from their parent universities to merely stay afloat.

July 25, 2007

What's in a name? Plenty!

I was the victim of identity theft this year. I learned first-hand the value of my good name, and my good credit. Trying to retrieve from the gutter my reputation among creditors took on a life of its own. I gained a new appreciation for the ability to change one’s records when you need to, and protect them when you don’t. Last year at this time, Mitch Ratcliff blogged about LibraryThing, “a kind of public bookshelf with social networking built in.” What’s refreshing about the site is that you can get data back out. I have watched LibraryThing grow and grow. I continue to marvel at its friendliness. It’s like a cozy indie bookstore on a Sunday afternoon. By contrast, Amazon can be a bear to manipulate and is unforgiving when you need to make a change. Once data goes in…it belongs to Amazon.

July 23, 2007

Very RenGen Ad from Glenfiddich

Check out this recent ad for Glenfiddich Scotch. It evokes many RenGen touchpoints: cross-cultural adventure, iconic art, fashion as a language (not to mention characters note the shoes in the museum). Its thesis is this: crafting anything worthy of your expression takes mastery. Mastery takes time. Enjoy.

July 17, 2007

Renaissance Generation Leadership--Chicks Control the View

RenGen women will control the media. No question. Despite what they say about Katie Couric. It doesn't matter that Couric flopped as an anchor. That role, like the talk show host, is a cultural relic anyway. And until a new platform for reporting the news takes hold, it will continue to see tiny ratings spikes when the next hot talent boots up. Once the buzz dies, so do the ratings.

Last Friday, in an article on CNNMoney.com, Jon Friedman of Dow Jones MarketWatch.com asked: Is there anything, by now, left that you want the media to say about Katie Couric?

Yes. This blogger wants to know why CBS thought its salvation was to appeal to soccer moms and working women through Couric when in reality women's lives are so hopelessly complicated that they are not targets for a 6 p.m. day part? At that time, they are meeting a deadline at the office, or stuck in traffic, whizzing into the drive-thru, hurtling to a child's soccer match, football banquet, play, ballet recital you get the picture. A new perspective on Super Moms is offered by artist Megan Burns whose richly painted artworks spoof the feminine macho mystique of the comic book genre, while making subtle political statements about power, peace, war and sex. Check it out.

PS-Anyone wishing to piggy pile on the Couric story, Jon Friedman posted his email to jfriedman@marketwatch.com.

July 11, 2007

Video Ads Online Prompt Consumers to Act

The Online Publishers Association reports that video ads get Web users to act--even, in some cases, to buy.

A new OPA study ("Frames of Reference: Online Video Advertising, Content and Consumer Behavior") found that of the 80% of viewers who have watched a video ad online...

• 52% have taken some sort of action as a result
• 31% checked out a Web site
• 22% searched for more information
• 15% visited a store
• 12% made a purchase

Online advertisers can behave like Indies. The environment is more playful, with more elbow room for story telling. The result is more engaging content. If you've checked out some of the more risk-taking videos, such as Bud Lights Swear Jar on YouTube, its clear that advertisers enjoy more creative license on the Web to deliver more extreme, and in most cases more authentic expressions. Online videos feel less like ads and more like sponsored Webisodes. For more details, see the OPA's press release. The association is also offering free breakfast briefings to explore the study's findings in depth at various U.S. cities throughout the month (registration required).

July 3, 2007

What's Eating Sponsors? A Hunger for Innovation

Post 9/11, marketers obsessed about measuring ROI. Based on a recent survey of marketing executives with budgets over $250K, ROI is being eclipsed by a new concern for innovation. Wayne Cerullo, principal at InSighting Ideas, LLC shared with me the results of a recent study on top pain points for marketers. Innovation outpaced ROI as a priority among the 1,500 marketing executives surveyed.

Thank goodness, I say. The bean counting was squeezing the lifeblood out of marketing, leaving less room for creativity, not to mention loss of focus on the customer. Don't get me wrong. Demonstrating the value of any campaign is an important discipline. For instance, during the dot.com frenzy I, like many other marketers, watched in horror as agencies blew millions of their clients $$$ on vague :30 television spots that failed to communicate basic information about the product. The subsequent bust sent everyone back to the ledger. And that's where they stayed, fretting and wringing their hands. Better accountability is useful, but it wont grow new business. Things seem to be re-calibrating in the direction of fresh ideas that pay off. For the complete report, Click here.

June 27, 2007

Farmers Markets -- Sumptuous Sponsorship Potential

Yesterday, on my way to our downtown office, I took a detour through one of Chicago's Farmers Markets. What I didn't anticipate was the direction of the wind that day. I was lured when it wafted my way carrying the sweet smell of Italian sausages grilling beside a golden bed of sweet onions and green peppers. They had me at the first breeze! I purchased one from the vendor, and downed it in three bites.

Farmers markets are springing up in towns across the country. In major cities, they are expanding to include live music, wine tastings and soft goods. In fact, because they are considered a main ingredient for healthy, urban lifestyles, residents are asking for them and city planners are scurrying to respond to the demand. The training program on How To Create a Successful Farmers Market, offered by Projects for Public Places, a non-profit dedicated to creating and sustaining public places is sold out.

I predict more markets will find sponsors. Why? Because the eat local mantra has seeped into our culture, and because people like the sense of control they get from buying produce pulled from the dirt that day, and because they crave the sense of community markets give them -- I predict markets will find local sponsors. Markets will expand their offerings, take on festival-like features and they will become experiences cherished by the public. This makes them worthy of affiliation from sponsors such as local banks, insurance brokers, realty companies, restaurants and civic groups looking for a little halo effect. Shine on!

June 18, 2007

The Three-day Weekend or the Nano Break

June 11, 2007

City of Seattle Creates an Ecotourism Brand

Youve heard of Metrosexuals, now meet the Metornaturals.

Going beyond the usual sloganeering, Seattles CVB launched a new campaign aimed at the RenGen traveler. The campaign highlights cultural and eco attractions in Seattle. Launched late in 2006, the campaign is gathering steam, and the term metronatural is being picked up elsewhere to describe a crossover consumer segment that is more mindset than demographic segment. What is a metronatural? Think smart, urban, expressive, culturally hip, with a serious appreciation for the environment. Learn more: http://www.visitseattle.org/media/brand.asp.

June 6, 2007

Promising Futures: Bright, Young RenGen Graduates

This weekend, my son graduated from high school. As I glanced through the commencement program, I was struck by the accomplishments of this group of youngsters. Community service, publishing projects, awards for original art and hands-on activism. Unlike the stereotyped GenXers who came before them, these kids seem empowered. They take action. It will be interesting to see how they fare in the world of work when they complete college and go to work for the then middle-aged GenXers.

At a recent event I spoke at in Denver, I was preceded by Al Gore, who of course rocked the conference. Gore is tapping into a broad swath of people eager to do what they can to fix a poisoned world. But at the core of Gores movement is a group of young RenGenners. I predict this group will be the social entrepreneurs engineering all kinds of change. They will build new products and crack unforeseeable markets. Their creative spark will ignite the fumes emitted by previous generations. Others will use the light from that flame to find new paths.

As my son strode across the stage to collect his diploma, I was filled with the usual motherly pride. But as he took his seat again among the field of mortarboards, I was also filled with hope.

May 24, 2007

Fit to be Trusted -- New Research on Corporate Sponsorship

As the power of traditional advertising wanes, more companies are discovering the value of sponsorship to influence consumer recall, attitude and purchase intentions. But can corporate sponsorships enhance consumer trust? It depends. Based on a recent study by researchers at Michigan State University and reported in the "Journal of Advertising," congruence -- or the relatedness of fit between a sponsor and a cause -- plays a deciding role. The study finds that consumers tend to believe there's a motive behind corporate sponsorships. A good fit between a sponsor and sponsee, means consumers are more likely to accept the sponsor's motives as altruistic. Congruence also enhances sponsor credibility, as well as the consumer's attitude toward the sponsor. To wit, good fit inspires trust. Check it out, "Congruence Effects in Sponsorship: The Mediating Role of Sponsor Credibility and Consumer Attributions of Sponsor Motive." by Nora J. Rifon, Sejung Marina Choi, Carrie S. Trimble and Hairong Li.

November 22, 2006

My new and improved blog will kick off soon...
We are switching blog formats to bring you more fast-breaking trends, tips and who's who. Check back Jan. 1, 2007 for a better blog!

September 27, 2006

Beat the Clock: Time Compression Hits Families

Feeling over worked, over wrought, and over loaded? Yahoo and OMD know why. Thanks to portable media and multitasking behavior, according to their study, the typical consumer packs an average of 43 hours worth of activity into a typical day. Holy cow! Essentially, we are doubling-down our time every day. The family lifestyle data was shared during Advertising Week, reports Advertising Age.

Other highlights include...

• Children influence 50% of all purchaes.
• In the U.S., the average family has 11 technological devices. Globally, the average internet household has 2.4 TVs, two computer and 6.3 "other" devices, which could include digital cameras, GPS devices or DVRs.
• The U.S. lags in DVR and MP3 use. MP3s are most highly used in China, at 72%, and Korea, at 73%. DVR use is highest in Mexico and the U.K. at 42%.
• South Korea lags in e-mail use, primarily because blogging is so popular that many people communicate through messasges in blogs.
• Some 16% of adults say communication with their children has improved, thanks to instant messaging.

August 23, 2006

Southern Comfort Mixes Documentaries with Concert Sponsorship

Southern Comfort has produced eight short films -- part concert series, part documentary -- that tell the personal stories of musicians living in New Orleans. According to Madison & Vine, the films feature live performances and artist interviews along with footage of the city. Surprisingly low key, the three- to five-minute shorts do not feature product placement or product signage of Southern Comfort, a brand of Brown Forman.

Shot in New Orleans in April, the films leverage the city's annual Jazz Fest, which Southern Comfort sponsors. The musicians, mostly of independent labels or unsigned, were all chosen by Brown Formans agency, Arnold Entertainment. The theme of the stories fits in with the brand's values of friendship and being outgoing, warm and authentic.

The films strive to appeal to the younger end of the drinking spectrum and don't focus on the negative impacts of Hurricane Katrina. "They're all very optimistic," an Arnold spokesperson said. "They're all about New Orleans and wanting to rebuild."

The films debuted on socomusicfund.org in July. They will also be shown at Southern Comfort music events in the U.S., as well as at events in the U.K., Greece, South Africa and Australia between music acts.

Music was a great way to connect the city back to the brand. "Southern Comfort was created in New Orleans, so it was a natural fit for us to create a project honoring the city and its music history while providing a look at how the city and its artists are adjusting to the changes," said Ann Stickler, VP-global marketing director, Brown-Forman.

August 17, 2006

Office Depot and Office Max, Entertainment And Philanthropy Retailers Unveil Back-to-School Programs

I guess I am making up for my spotty blogging performance while I was finishing my latest book. Here are two meaty stories about back-to-school promotions that say a lot about where sponsorship and philanthropy are headed for retail.

Office Depot is donating more than 300,000 backpacks containing basic schools supplies to underprivileged and "at-risk" children during this summer's back-to-school season. This year's program marks an important milestone of one million backpacks distributed to children by Office Depot since the program began in 2001.

Now in its sixth year, Office Depot's "National Backpack Program" supports children ages 5 through 12 in North America and Internationally. In addition, each of the company's retail stores will be distributing backpacks within their communities. The backpacks will be distributed through several national charities focused on education, disaster relief, violence and domestic abuse. One of the charities benefiting from this program is the National Court Appointed Special Advocate (CASA) Association.

"Office Depot is very proud to play a small part in helping to provide children with the basic supplies they need to start school through our National Backpack Program," said Chuck Rubin, President of North American Retail for Office Depot. "It is truly an honor for us.

Office Max Takes Bold Steps, Leverages Philanthropy with Content

For its part, OfficeMax is shunning traditional TV advertising in favor of a branded-entertainment project called "Schooled" that plays a "Punk'd"-style prank. A deal with Google buttresses the promotion and gives the retailer massive online exposure.

OfficeMax's approach is rare -- the marketer has no prior experience in the area and has created a one-hour special that serves as a showcase for its products and community largess. Adding content and distribution muscle is Walt Disney Co.'s Hollywood Records (teen singer Jesse McCartney has a starring role) and ABC Family channel, which is airing the show Aug. 17.

A long time laggard in consumer marketing, Office Max is taking a bold step into branded entertainment. Madison & Vine reports the company plans to go big in this direction. "We don't want to dabble in branded entertainment. It's part of an overall strategy," Mark Andeer said. "We really want to be aggressive," Andeer is the company's new of VP-brand strategy.

Mr. Andeer, who joined the company six months ago from Omnicom Group's BBDO, Minneapolis, said OfficeMax intends to make entertainment a priority. The marketer is backing off from traditional media, specifically TV ads, because school-age target audiences aren't as influenced by campaigns there. Mr. Andeer reports to Bob Thacker, OfficeMax's senior VP-marketing and advertising and former president-CEO of BBDO, Minneapolis.

The marketer intends to fund its branded-entertainment projects with money it would have earmarked for TV ads. OfficeMax spent $12.3 million on media from January to May last year, according to Advertising Age. For the same period this year, the marketer has spent $10.2 million, none of that on TV.

"Schooled" centers on a prank where the summering eighth-graders at a suburban New York school are told they have to take written and oral exams in order to get into high school. If they fail, they'll be sent to "8 1/2 grade."

Their parents, the principal and faculty of Tuckahoe Middle School participated in the joke. The students show up on a summer Saturday to take the tests, which are administered by actors who have the students do silly stunts such as "stop, drop and roll." In a nod to pop-culture-and-marketing partnerships, the proctor asks the students, "How many results would you get if you Googled Google?"

As the youngsters are starting a written test, they're surprised with a concert by Mr. McCartney, who reveals the joke and OfficeMax's sponsorship of the project.

In-kind Donation

OfficeMax's approach is rare. The retailer has no prior experience in entertainment marketing area and has created a one-hour special that serves as a showcase for its products and community largess. Via on-screen graphics, the company will give the school $80,000 for school supplies. The suburban New York public school was chosen because of true need brought on by recent budget cuts. The money from OfficeMax is intended to replace what had been lost.

The youngsters, armed with lists from the principal and faculty, later go on a shopping spree at OfficeMax. The chain, which is in the midst of redesigning its stores, has launched teen-targeted "Creation Stations" that allow youngsters to personalize some back-to-school supplies.

Google Video is featuring a preview of the show, with links to OfficeMax, and exposure for the project through banner ads, keyword searches and other online promotions. Mr. Andeer estimates the marketer will amass some 1 billion impressions through the Google partnership.

OfficeMax has an existing corporate alliance with Disney, whose executives were interested in the "Schooled" concept. Mr. Andeer and Ms. Mulholland worked with Hollywood Records to add the musical performance to the show. Mr. McCartney has a record coming out in September.

For total wrap-around promotion, OfficeMax will give away DVD copies of "Schooled," including two bonus tracks from Mr. McCartney, with back-to-school purchases. The marketer will promote the giveaway in its circulars and print ads, and will hype Mr. McCartney's CD in its stores.

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August 02, 2006

Nielsen Enters Stage Right with a New Marketing Service for Theater

Around this time last year, AC Nielsen was still in the dark about the swelling influence of the cultural consumer. I know because I asked. When I interviewed one of A.C. Nielsens chief analysts for my forthcoming book, The RenGen, he candidly said, The cultural scene is not something we are tracking, but it sounds like we should be. Today, they are promoting Live Theatrical Events, a new service born out of partnership between Nielsen National Research Group, or NRG, a corporate cousin of Nielsens television-rating unit, and Broadway.com, the ticketing and theater news Web site.

Hi-Tech Meets Hi-touch. Using Hollywood-style data mining techniques and the Internet to contact thousands of theatergoers who are also avid Internet users, Live Theatrical Events is changing the way shows are marketing themselves, on and off Broadway. Managing director, Joseph Craig, whose background is in film promotion, is spearheading the service and is rapidly becoming a sought-after expert in the arts marketing scene. Stay tuned for useful data to emerge for arts marketers and corporate sponsors alike.

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July 19, 2006

New Marketing Sees Aggressive Growth

A new report from PQ Media reports on the rise of alternative media, which they term "new marketing."
Scooped from the PQ website:

• Spending on alternative media strategies surged 16.4% in the first half of 2006 to an estimated $53.37 billion compared with the same period of 2005. Growth was driven by double-digit gains in most of the 23 subsegments of alternative media.
  
  
• PQ Media estimates that spending on alternative media will accelerate in the second half of 2006, growing 18.5% to $115.77 billion for full-year 2006. The alternative advertising sector is forecast to grow 19.9% for the year, while alternative marketing is expected to increase 17.6%.
  
  
• The largest alternative media subsegments include event marketing, cable advertising, and Internet advertising, while the fastest growing subsegments include user-generated media, mobile marketing, and videogame advertising.
  
  
• Total alternative media spending rose 18.8% in 2005 to $97.66 billion, far exceeding traditional media and nominal GDP growth in 2005 and in the 2000-2005 period.
  
  
• Driving growth is the shift of media usage from traditional media to consumer-engaged content, such as blogs and online games; the migration of younger audiences to digital media, like videogames and podcasting; and the ability of alternative media to supply better ROI metrics, like search advertising.
  

What I like about their analysis is that they have developed their own econometric model for deriving their numbers. Whereas the event sponsorship industry previously relied on a single source of data (with a less than transparent forecasting methodology); we now have more information on market sizing.

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July 12, 2006

The Power of One Red Paper Clip

Kyle did it. He bartered one red paper clip for a house. His lessons learned in negotiating include:

• Not everything is an asset. For instance, a generator in New York City is only an asset in a black out.
  
  
• One Thing Leads to Another. Each trade has a massive repercussion on what future trade offers will be.
  
  
• Dont get obsessed with the item you are trading. You need to think outside the paperclip.

Heed these and more when you check out Kyles story NB: his theory of "funtential" stored in one instant party.

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June 29, 2006

Que GaskinsRenGen Man

As many of you know, I am writing a book. RenGen: The People, Ideas and Culture of a Second Renaissance Generation, www.therengen.com due out in April 2007. In the book, I write about one of my favorite marketersQue Gaskins from Reebok.

I first met Que Gaskins at a marketing conference in 2003 where the message he delivered immediately set him apart. He was a panelist on the topic of marketing strategy at Northwestern University Kellogg School of Managements annual marketing conference. When fielding a question about how he was reaching the youth market, Mr. Gaskins offered up a snapshot of Reeboks progressive efforts to align with the "new culture of youth" that he had learned about when he walked the streets of Boston interviewing young people. When he talked with them about their interests, he noticed they came alive when talking about their music, their poetry, their artwork. Here was a sporting goods company that realized it had to fuse sports imagery with art to reach the next generation of buyers.

After a period of "aerobics chic" in the 1980s, followed by "also-ran" status behind Nike, Reebok decided to take aim at the youth market and hired Que Gaskins. Reebok has been beyond cool ever since. An ardent believer in knowing the customer as a whole person, not just a demographic, he tracks youth trends by spending hours observing teens in public places such as malls, public libraries and community centers has not only predicted trends in youth culture but also helps drive them.

In the fall of 2006, Gaskins joined me on a panel to discuss the cultural consumer at a business breakfast sponsored by the Boston Business Journal. Following the event, he expressed interest in collaborating on the research I was doing. A spirited thinker and true evangelist for following, "the road not taken," Gaskins adopted the concept of fusion from our research. Gaskins rif on the research is "fusionism."

A few months ago, I understand IEG invited Que to speak at their conference where he took the opportunity to evangelize about "fusionism." Look for more on Que in the days and years to come. He is a bright guy who knows how to adopt new thinking in real time.

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May 30, 2006

Women to Watch

Each year, Ad Age publishes a special report on the accomplished women in advertising. The honorees are recognized for having played significant roles in defining the future of their fields. Today, Ad Age named the 2006 Women to Watch and provided some background on their current approaches to marketing and advertising. Since arts and entertainment properties find their value lies at the thin edge of the wedge, its worth noting that many of these women have risen through the ranks of persistently male-dominated environments because they have found value in the
not-so-obvious new media and alternative venues. Take heart and take note of their names.
http://adage.com/article?article_id=109452

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May 09, 2006

InfoLust: When Knowledge is Power and Power is Seductive

Interesting piece on "search" habits of Googlers and Yahoons at Trendwatchers.com. The theory at Trendwatchers is that the driving force behind the INFOLUST trend is a basic human need for power, or "at least the illusion thereof." Because information is the currency of the knowledge society, according to Trendwatchers, being in the know can make you a dominatoror dominatrix, depending on which way you swing. I attended a national conference on search behavior in New York recently, where experts talked about the fact that information searching on the Internet is as habituated as coffee in the morning or driving a car.

Trendwatchers anticipates implications. "Now that the web has given millions of consumers "A taste of the new, transparent world of information distribution, expectations about access to information have been raised. In fact, traditional power centers are exposed for what they really are: entities that survived because of an unequal distribution of information, not because of their brilliance or skill or because they did something unique with this possession." Revolution ahead?...I dont think so. Renaissance is more like it. As I see it, INFOLUST is a feature of a larger shift in mind set. It is similar to the rise of humanism in the1300s, when ordinary people discovered they had the power to commune directly with their God, without the need for a go-between. That eventually led to Martin Luthers revolt and Guttenburgs bible. What will it lead to for us? Just so happens I am toiling away on my next book that will takes up this very topic. Want more on INFOLUST? http://www.trendwatching.com/trends/infolust.htm

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April 12, 2006

Five Year Research Project Proves Online Sponsorships Power

It seems the sponsorship marketing model works online for the same reasons it succeeds in live environments. The research project was collaboration between American Demographics, Studio One Networks, Next Century Media that sought to assess the ability of online sponsorship to persuade and build brands. The findings are eye-opening. Check it out!

The findings include:

• Brand perception among consumers in "True Sponsorship" situations, improved consumer satisfaction, brand awareness, and intent to purchase, in every case.
  
  
• The average TV commercial has a "persuasion score" of 4.3% versus a "True Sponsorship" program score of 30.8% Online. (Holy Cow!!!!)
  
  
• In virtually every category, target groups indicated preference for sponsorship "exclusivity," citing "common" sponsorship advertising as "clutter".
  
  
• Target audiences became highly involved in the subject matter of the "True Sponsorship" programming, producing high levels of satisfaction with the material. This evoked positive "gratitude" effects towards the sponsor's Brand.
  
  
• The study repeatedly confirmed the high level of consumer "engagement," or persuasion effect, with a day-after sponsor recall percentage of 27 for "true sponsorship" five times the number for TV commercials.
  

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April 03, 2006

Google and Smithsonian Deals Raise the Question: Are We Moving Toward Pay-to-Play Scholarship?

What does the Google suit brought by KinderStart have to do with the Smithsonians deal with Showtime? They are both about how money can control content. The fusion going on between commercial entities and information sources blurs the lines between what kind of information should be free and unfettered, and what can be harnessed and restricted to those who will pay for it.

This week, the Smithsonian announced a strategic alliance with Showtime Networks, Inc. that throws a big tarp over the Smithsonians vast collection and restricts its use by people like documentary filmmaker Ken Burns and others like him who rely on the nations attic to tell their stories. In return for undisclosed fees and potential royalties, the Smithsonians deal with Showtime restricts filmmakers and producers of television shows from using the collection to create their content and then airing that content anywhere else but Showtime. (Imagine the impact on public television.) Ken Burns was outraged and told the New York Times, "I find the deal terrifying. It feels like the Smithsonian has essentially optioned Americas attic to one company, and to have access to that attic, we would have to be signed off with and perhaps co-opted by that entity."

What the furor from the film arts community suggests is that we can expect broader implications to ensue when organizations that have operated on the basis of open access in support of their missions do deals that diminish the scope of those missions. Its NOT a matter of a big venerable institution like the Smithsonian selling out. I have always contended that these deals can be great for both sides if structured properly. But if an organization like a museum or library wants to engage in a commercial alliance of this nature, it must first remember what business it is in. It strikes me that the Smithsonian may have lost sight of that to achieve a cash infusion to fix the roof of the attic.

By contrast, Google sought to protect its core business model.

The suit from KinderStart brought against Google, invokes similar issues. Kinderstart is a member of Googles AdSense and AdWords programs, which means it is a publisher that makes money by serving relevant ads from the Google network on its site, as well as an advertiser.

Red Herring reports that in the filing, Kinderstart said its monthly AdSense revenue fell by more than 80 percent in April 2005 due to the fall-off in search engine referrals from Googles site."

KinderStart said it has never violated any of Googles guidelines and was never notified by the search giant that it had done so.

But thats not the issue, claims Greg Sterling, an analyst with the Kelsey Group. The real issue is whether people can control how their sites show up on search engines because they have paid for placement.

"The implications of what theyre arguing are really sweeping," said Mr. Sterling. "It would imply everyone is entitled to their ranking. Its a piece of property they own. Every time someones ranking changes, they can make these types of claims."

Kevin Lee, chair of the Search Engine Marketing Professional Organization, agreed, comparing Googles job to that of a third-party movie reviewer.

"Its as if a movie producer or director sued a reviewer for a bad review," he said. "If they decide your site is not worthy of high rankit doesnt matter whythe third party service decides the rank of the site. If they stop being relevant, their business model is dead. If Roger Ebert started saying that mediocre movies are good [in his reviews], no ones going to read them."

The issue is about control, exclusivity, and paying to have both. There is increasing expectation on the part of those who pay, either for access or accessibility, that they have bought a lot of control over the information sources that are more free-range and must remain so to be viable themselves. These issues go to the heart of the economics of a knowledge economy and are stirring up important debates.

Sources New York Times and Red Herring

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March 08, 2006

Google Gets Philanthropic

In a long-awaited move, Google announced last week that it has created a philanthropic arm and tapped Larry Brilliant, 61 yr old founder the Well, to lead the effort. Business Week reported the first major gift went to Seva, a global relief organization with big celebrity backers. For every day folks Google offers an in-kind program that grants free advertising to non-profits. Check out www.causemarketingforum.com for more details.

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February 22, 2006

Federateds New CMO Will Boost Macys Brand With Partnerships

Citibank marketing executive Anne MacDonald is jumping from the financial-services giant to head marketing at Federated Department Stores, which owns Macys. Led by CEO Terry Lundgren, Federated is in the midst of building its flagship Macys stores into a national brand. As a result of several mergers, the number of department stores operated by Federated as Macys stands at 800.

Ms. MacDonald, most recently CMO of Citi's global consumer group, brings a wide range of marketing and advertising experience to the position. Prior to Citibank, she was VP-brand management at Pizza Hut, a unit of PepsiCo. Its worth noting that of these positions were at companies with very large sponsorship portfolios.

Retail models in sponsorship have morphed radically in the last 5 years, and it will be hard to predict how Ms. MacDonald will use sponsorship to re-position Macys. This is especially true in markets like Chicago, my home base, where the Marshall Fields brand will be replaced by Macys, much to the chagrin of loyal customers.

If there is one prediction I will make--and stand behind --its this: having come from financial services, Ms. MacDonald will aggressively pursue collaborative efforts with a mix of strategic philanthropy, government and community affairs and event sponsorship tied to highvisibility projects that mayors and their planning departments will rally around. Macys will need friends in high places.

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February 16, 2006

GM Re-orgs Marketing

Big shake up in marketing at General Motors this week. Advertising Age reports that Mike Jackson, 49, general manager of GM's western region in Los Angeles, succeeds Brent Dewar as VP-marketing in North America. Mr. Jacksons appointment is effective March 1.

General Motors ranks in the top 10 in U. S sponsorship spending. GM's luxury brands like Cadillac, Buick and Saab are active arts and entertainment sponsors. So look for money to move into re-staging certain vehicles. That will require them to align with properties that deliver bold imagery matched with lots of on-site vehicle placement opportunities.

Other contacts for your Rolodex include:

Mark LaNeve, stays on as VP-sales, service and marketing in North America.

Mr. Gerosa will implement sales and service programs as well as distribution strategies until his retirement later this year, probably not in time to make any key buying decisions. If you have a deal tied to his budget, seek a renewal pronto!

Susan Docherty, 43, general manager of Hummer, succeeds Mr. Jackson in the western region.

Martin Walsh, 53, executive director-sales and marketing support, succeeds her at Hummer.

Larry Hice, 59, regional general manager in Dallas.

Kurt McNeil, 42, moves to general manager of the south central region.

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February 06, 2006

Keeping it Real

I just returned from San Antonio where I gave a talk at OCLC's Symposium. I toured the Alamo. I walked along the River Walk. Everything felt very packaged. It put me to mind of something Mary Kay Baumann, the award-winning magazine designer told me recently about the trend among readers for the authentic. Being authentic means being flawed. As the willingness to accept what is flawed rises, expect a letting go of the anxiety associated with perfection. Martha Stewart is a joyless task-master with a prison record she desperately refuses to let get to her. In truth, if she embraced the experience for what it probably was, she'd still be relevant. But now, she looks to me like the sanitized Alamo and the Disney-like River Walk--clean, cold and uninspiring. Imperfection suggests a work in progress. A handmade masterwork still has the mark of human creation.

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January 17, 2006

Rules for Revolutionaries

The fact that entertainment is becoming the THE hot marketing platform is pretty obvious. What is not so obvious is what really works. The business of branded content, product placement and branded experiences has taken sponsorship to entirely new heights. Can we even call it sponsorship anymore? Why not. It still separates the intent to align with the authentic (events, communities, experiences, causes) from the interruptive (paid advertising). Growing interest in non-traditional ways to reach consumers is raising a lot of questions about where this is all going. Having watched 2005 unfold with lots of revolutionary deals, here is my take on what worked and how to stay on top in 2006:

1. Get the sponsors' people into the act: This trend is sprouting everywhere, from the U.S Curling Team to symphonies to theatre companies. By using imaginative ways to give the sponsors employees a role helps them feel like stars. Of course you have to make sure it doesnt jeopardize your quality, so dont let them conduct the orchestra or strap on toe-shoes. Whether its walk-ons, cameos, a day back stage, stage fighting practice, or helping hang a corporately sponsored art exhibition, these experiences help employees take a break from their routine and indulge their sense of adventure. As corporately-funded education programs get whittled away, employees are looking for ways to keep learning and challenging themselves, without having to worry about tuition.

2. Pull it all together. That means integrating the campaign. Sponsors who do just an event deal, and dont look for media, sampling, opt-in online promotions and some form of print are wasting their money. They can try to assemble all the pieces themselves, but the nature of their planning is already confused and fractured. Help them solve a problem by delivering a specific target audience with multiple impressions and experiences and they will sing your praises.

3. Take visual risks. As the society becomes more and more visually oriented, all communications need to appeal to the eye. Proposals, memos, and final reports all need to be fun to look at, easy to digest at a glance, and should express the brand or property the sponsor will be aligning with. To move to the top of the pile, it should all be eye-popping.

4. The new deal: authentic or extreme. For new entrants to the market, or new properties currently in development, it must be either extreme, or authentic, which means it has instant appeal because it connects emotionally with audiences. An example of extreme is Targets Vertical fashion show in 2005, where the cat walk was Rockefeller Plaza Building's faade. Models secured by tie lines defied gravity and drew huge crowds and media mentions to boot. Authentic is more broadly defined, but it includes things that seem to evolve naturally from a community, as a form of communal connections that make people secure, connected, and proud. Boeing sponsored a Latin Jazz festival and captured exit responses that revealed audience members felt "respected" by the sponsorship.

5. Revolutionaries will rule. Remember that you are attractive as a brand ally because you offer something truly unique, authentic, as well as something turn-key. Stay open to new ideas. Its one thing to have your act together with your proposal under one arm and your market value calculated to the penny, but sponsors are looking for colleagues as much as they are looking for the right deal structure. Besides, your competition has a nice proposal, too. But can they help the sponsor be inventive? Do they have your deep insights into the behaviors and preferences of the audience segment you reach? Seek to understand the sponsors brand imperatives first and then you can make smart suggestions. Remember the golden rule of improvisational theatre and never simply say NO unless you want to drain the energy out of the room. Instead, gently modify the request and build on it creatively by saying, "Yes, and..."

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December 28, 2005

The Little Film Festival That CouldBut Isnt

For years I have been proselytizing the BIG IDEA. In my experience, it is always easier to find supporters for a big idea than a little idea. But ever since Ithaca College announced its Cell Flix festival last month, sponsors have been ringing up with queries. Wireless, peripherals, long distance carriers, cell phone manufacturers, as well as content services and software all want a starring role in the festival specifically designed to showcase films created for the postage stamp format of the cell phone.

The purse for the winning entry is $5,000 and is open to students worldwide. Aspiring sponsors are interested in the perfect blend the festival offers: fresh, hip content and tech loving college students. The only hang up is that CellFlix is not for sale. Festival organizers have remained firm in their desire to build a quality festival for the format first, stay in control of their assets, and then take on sponsors. A savvy move that should ring true once the festival establishes a track record.

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November 29, 2005

Sponsors Look To Blend into the Scene at Art Miami

The Art Basel Miami, an art expo modeled on a similar event in Basel, Switzerland is attracting a host of corporations looking to create an inside edge with a premium audience. Begun in 2002, attendance at the four-day event swelled to 30,000 this year including buyers, agents, artists, gallery owners, fashionistas and yes, corporate sponsors. But its not the typical signage or branded entertainment that is showing up. Art Basel Miami is hot with sponsors looking to tap into the buzz, to blend into the fabric of an artsy brand pastiche.

Instead of customized promotions that look to high-jack the event, as is common at Sundance, or the lavish corporate pavilions at Cannes Film Fest, Art Basel Miami is attracting companies like Ferragamo and the Esquire who are co-hosting a VIP party on a yacht. "It's about spreading more of an underground vibe in terms of what our brand stands for," said James Gager, creative director for MAC cosmetics, comparing the Miami Beach affair to other events the company sponsors.

Names like DKNY, Bombay Sapphire and MAC cosmetics are stuffed into lavish schwag bags and seen hosting launch events for promising young artists. In fact, Art Basel Miami Beach has quickly earned its stripes as a "trend-spotter's paradise, where the latest ideas in art, fashion and music are on display in one electric setting," notes the New York Times.

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November 8, 2005

Is Marketing a Mans World, The Report from AD:Tech

New York--I was at the Ad:Tech conference for web marketers this week. I was there to get the latest on web-based sponsorship trends and marketing alliances.

If I had to listen to one more presentation about the females buying power, I thought I would lose it. The topic was a bullet point in nearly every presentation. Male and female presenters alike trotted out the numbers; and they are impressive. For instance, boomer women control 51% of all buying powerwhether it is automobiles, mortgages or oatmeal. By one presenters estimates, they are projected to control 59% by 2007.

But are women truly empowered beyond their checkbooks? Not if you listened to the keynote presenter Kevin Roberts, CEO of Saatchi and Saatchi. Mr. Roberts, dressed in the black shirt and blue jeans uniform of a chief creative, pitched his new soft-cover picture book for grown-ups entitled Sisimo I gathered from the books minimal text that his thesis boils down to this, there are no rules in marketing, save one: emotion drives buying decisions. Maybe 80 or 90% of the time, he opined. Unless, Roberts stated, youre a woman. Then emotion drives 100% of all your decisions. He delivered that comment with a cheeky smirk.

Stop. Hold on. Did I really hear that? What century is this? I made eye contact with a few other women to get some reaction. Many gave me that familiar "He just doesnt get it" wag of the head.

If youre thinking this is a fluke, consider that last month, the chief creative officer of WPP was fired for speaking his mind at a similar industry event. He proclaimed without apology: "Female creatives are crap!" He was asked to resign the next day.

Both of these men share one thing in commonat least they were honest.

They help reveal the dark underside of why marketing is failing. Women do the buying, men control the communications -- men like Roberts. The dismal truth is that these men have little respect for the customer. Why? Because she is a she.

I am reminded of the Buddhist principle of abundance: Always respect the source of your prosperity, or it will escape you.

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October 20, 2005

The Long Tail Wags the Dog

The Long Tail is wagging the dog in the advertising kingdom. When Chris Anderson, Editor of Wired Magazine snaps up one of the highest awards in the publishing industry, it makes me wonder. Not because he is undeserving, on the contrary. But his most recent manifesto, the Long Tail, argues for an end to the idea of "mass" anything. No mass markets, no critical mass, no mass production. What strikes me as odd is that people in Andersons business make their living delivering magazines that are oh, well, maybe a little bit specialized, but mostly mass -- otherwise advertisers wouldnt shell out money for placements in them. So this is interesting.

Furthermore, Andersons blog dismisses Richard Floridas recent book, because in it Florida aggregates activity to get a sense of where lots of people are migrating and what they are doing once they get there. In Andersons view, the very idea of mass is no longer relevant. The Long Tail is about the flattening out of the populations interests, preferences and participation into many niches. If Anderson is correct, a lot of people who have properties that represent smaller, niche markets with passionate followings will be very happy. But mostly, these people get asked about eyeballs...and how many they deliver. If they have lots of them, masses of them, they will likely do a deal. If not, they tuck tail and move on.

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October 04, 2005

Buzz Marketing Illegal?

The popularity of buzz marketing is raising questions about its legality, according to Advertising Age This issue could affect many event and organization managers whose sponsors seek to deploy trained advocates into crowds and membership ranks to gin up interest in brands. While the best programs are introduced subtley, they still run the risk of endangering the goodwill associated with the sponsees property when loyal users discover theyve been "pitched" without knowing it. Sponsorships more overt nature is all about disclosure. Its the spirit of the discipline. Buzz marketing, while it delivers powerful results, is inherently covert.

As agency- trained brand agents spread goodwill for brands, industry attorneys are seeking regulation on buzz marketing, especially around the issue of compensating people to participate in buzz programs. The bigger issue, it seems to me, is when brand advocates fail to disclose for whom they are working. Advertising Age reports that, "While there is no legal precedent specific to word-of-mouth marketing, there are Federal Trade Commission guidelines for ads that are likely to apply."

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September 28, 2005

Valuing Your Offer

I was on the road giving workshops and interviewing sponsors as part of the research project we are undertaking. I got a lot of feedback about fair pricing of deals. Sponsors go in assuming a price point is inflated. This leads to lots of haggling and cherry picking best assets, which no one enjoys.

Pricing a sponsorship package is complex. Our firm treats it like a science, calculating the fair market value of everything from a brochure to a handshake, using metrics based on a variety of pricing models derived from traditional advertising, placement metrics used by PR firms and interactive equivalents we have custom built from our nascent dot.com division. Since market values shift constantly, we also track current deals to gauge what the market will bear.

But no matter how elaborate the sponsorable property, its pricing comes down to three factors:

• What the competition is getting and what are they giving in return.
• The number of people you reach and the methods you use to reach them.
• Any intangible qualities that add value: organizational profile, ability to drive media attention, trustworthiness, ability to influence media and gatekeepers, emotional bonds created with audience.

Begin your assessment by looking around your marketplace, then internally to assemble these core pieces of information. There is step-by-step detail in my book Made Possible By: Succeeding with Sponsorship if you are game to tackle this.

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August 19, 2005

The Truth According to Jack

To listen to Jack Welch talk about winning, is to experience a radical type of truth-telling rarely found in business life. Jack insists on candor. So much so, that he bristles at questions that to him have obvious answers. Recently, I had the opportunity to moderate a private executive briefing for CEOs featuring Jack Welch, who was in Chicago with his co-author and wife Suzy Welch, to promote their new book, Winning Jack Welch shrugged off a question about corporations giving back. "Its what you do. Period. Winners give back. They keep stimulating the environment with resources and ideas." Simple as that.

This spring, the Economist Magazine defied much of the research and case analysis of successful corporations by concluding that publicly held companies that invest in their communities, for instance to strengthen schools or the social infrastructure, are led by chumps. Resolutely, the Economist slapped these CEOs down for draining dollars away from the stockholders.

But Welchs message contradicted that. In Welchs world, winners bring with them a sense of good will and good fortune that attracts more opportunity. It inspires employees to stand tall. It lifts people up from being functionaries to people with a purposethat is, to keep the cycle of winning churning forward because it delivers results to the business AND the community.

Welch is slight man. Despite his diminutive stature, his persona is larger than life. Like most people who have achieved his level of successhe channels energy that can light up a room. Hopefully, guys like Jack Welch will continue to shed light on the obviousthat the human enterprise is a woven destiny. When we understand that, we win, according to Jack.

More photos of Jack Welch click here

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July 15, 2005

The House That Harry Built is Novel Launch Pad

The Harry Potter book launch takes up the full city block in Manhattan, according to EPM Communications. The witching hour for delivery is midnight tonight when the first copies of the new book will be rushed from the Queen Mary to the Scholastic Book Store. EPM Communications provided the link to the photos that tell the story; coincidentally EPM happens to be on the same street as the Scholastic Building, aka The House That Harry Built.

The power of the Potter series defies all common assumptions about kids backsliding intellectually and not reading as much. Can any adult relate a similar experience from their own childhood equal to the hysteria around the Potter novels? I can't. I do remember getting a nearly lethal sunburn waiting in line for Beatles tickets one summer with my older brother. Let's not go there. Go here instead to check out the Potter launch party in Manhattan. http://www.epmcom.com/harrypotter

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July 11, 2005

Know Jack? You Should.

I just finished reading Winning by Jack and Suzy Welch. I will be moderating an executive forum with Jack Welch this Wednesday. I am always a bit squeamish about these things...after all, what if I dont like the book? I am happy to report that I loved the book. Welchs shoot-from-the-hip style elevates this beyond the usual business book. It's a romp through the highlights of what makes a great business tick. Welch includes lots of practical management and career advice to help readers become winners, personally and professionally. I highly recommend it.

One of my questions to Welch will be about social responsibility. The hard-boiled article in the Economist this spring went to great lengths to downplay the benefits of social responsibility, claiming there are not enough tangible returns for the stockholders. But Welch's book is sprinkled with pearls on the matter. He sees it as part of the winning mix.

The plain truth is that the business of partnering with arts, causes and entertainment happens for many reasons, not simply from the perspective of strategic philanthropy. Today, we are seeing more of the marketing budgets applied. But still, because so much of the community cultural scene is based on a non-profit infrastructure, the deals are a blend of dollars. So, the matter of social responsibility to the community is important. I'll report back on what Jack Welch has to say.

Any other questions youd like me to ask Jack? Email them to me at pmartin@litlamp.com

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July 6, 2005

McKinsey Study Reveals Pain Points for Managing Sponsorship

As the entertainment industry replaces sports as THE place for brands to be, the sponsorship industry requires greater skill than ever to manage the deal flow. While demand is heating up, note that this is not an equal-opportunity boom. A recent study by McKinsey on high-perfomance organizations reveals lessons for the sponsorship industry.

Key findings include:

• Professional employees, who create value through intangible assets such as brands and networks, now constitute up to 25 percent or more of the workforce in financial services, health care, high tech, pharmaceuticals, and media and entertainment.
• Making professionals productive enables big organizations to be competitive, yet most of these organizations bog high-performers down with bureacracy that delays critical action.
• Corporate organizational structuresdesigned vertically, with matrix and ad hoc overlaysmake professional work more complex and inefficient.
• Companies must change their organizational structures dramatically to unleash the power of their professionals and to capture the opportunities of today's economy.

In other words, the slow to act will be quick to fail. Today's sponsorship market is loaded with opportunity, balanced with unprecidented competition for cash fees.

What to do? I recommend these five action items to improve performance:

1. If you haven't looked at your sponsorship policies and procedures for awhile, dust them off and make sure they are keeping you moving forward, not slowing you down.
2. Empower your people to negotiate and close.
3. Set your policies in writing up front and then demand the sponsorship unit follow them.
4. Eliminate networks of decision makers who must sign off on and approve each new wrinkle in the deal.
5. Know your bottom-line price sensitivty. What is your base fee from which you cannot deviate? Under what circumstances will you walk away from the deal? Where can you be flexible and add value?

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June 20, 2005

Aggressive Sponsorship Spending Expected from Sprint-Nextel Merger

The merger of Sprint and Nextel has created the need to launch the new co-branded identity into the marketplace with an estimated $300 to $500 million wired into the marketing budget. According to Advertising Age, the launch is expected to begin as early as this summer, with TBWA taking on the brand advertising assignment for the launch of the combined telecom, as well as the consumer side of the business.

Hal Riney, which handled consumer and business to business duties for Sprint, now will handle only business-to-business advertising and other unspecified "services." Still pending are duties for interactive, direct marketing, sponsorship and Hispanic.

Sprint spent $847 million in measured media, according to TNS Media Intelligence, while Nextel spent $339.7 million, last year. Sponsorship duties will likely be spread across a new in-house team when the marketing departments of the merged telecom is rolled up and restructured.

Potential partners looking to make hay with the launch opportunity should come forward with packages that meet the following criteria, explains Karen McCullough, a New Jersey-based marketing consultant to telecoms:

• media-heavy packages that are quickly measurable

• community affairs programs and promotions that help local towns improve the quality of life in ways their city governments cannotthink municipal enhancements

• direct-hit programs that either deliver consumers or deliver business-to-business customers. "The departments and the spending will be distinct, so don't expect too much collaboration across budgets," McCullough advised.

The decision likely means the end of the Sprint guy, a trench-coat-clad service man who appeared in the carrier's humorous spots to solve consumer's phone problems, postulates Advertising Age.

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June 06, 2005

Coca Cola Re-casts Itself In the Role of Academy Awards Sponsor

After a seven-year absence, Coca-Cola is back as the "Official Beverage Sponsor" of 2006 Academy Awards, reports Advertising Age. Archrival Pepsi, declined to renew its tie, explaining "the Academy Awards is not a distinct enough platform." This despite the fact that viewership of the Academy Awards nearly eclipsed the Super Bowl last year. Truth be told, both mega-television events have seen a decline in viewership, but Academy Awards has seen less than the Super Bowl.

Coca-Cola is planning seven TV commercials, led by ads for Diet Coke, for the telecast, reports Advertising Age, with pull-through at retail to exploit the momentum leading up to the awards, which is robust given that the event earns months of news coverage along with "Do-it-Yourself" Oscar picks and Oscar-night parties in markets across the county.

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June 01, 2005

Christian Groups Threaten Sponsors of the Gay Games

Conservative Christian groups are threatening to boycott Kraft Foods and Harris Bank, two sponsors of the Gay Games VII which will be held in Chicago next summer. Their reasoning is that sponsors of the Gay Games "are promoting an immoral homosexual lifestyle." The leaders of the protest are urging a letter writing campaign to sponsors and ultimately, a boycott of sponsors' products.

It would seem that Christian Evangelicals are enjoying a period of "most favored religion" under the current administration. The power of this status must be heady. Coincidently, there has also been a rise in public displays of intolerance, of which this boycott is yet another example.

As for any chilling affect on sponsorship spending on lifestyle events like the Gay Games, consider the power of backlash loyalty. Keep in mind that a primary reason a sponsor invests in the first place is to win the hearts and minds of a market segment. In this case, public displays of open bigotry will do more to galvanize audiences sympathetic to gays into fervent customers of sponsors products. Consider it a heightened level of what authors Ben McConnell and Jackie Huba call "Customer Evangelism."

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May 05, 2005

Bligs (new word for little bitty content blurbs in a blog)
Wining, dining and refiningAmex Leverages Good Taste

Word on the street is that Amex is gearing up for a multi-city promotional platform that ties restaurants, major cultural institutions, and wineries into a series of cross-promotions aimed at urban culturals. The lifestyle platform seeks to capture a mindset as well as a market share. Smart, chic, and intellectually fit urbans represent 63% of out-of-house entertainment market. Taking a page from its phenomenally successful cause marketing tie with Share Our Strength, Amex is looking to fuse the cultural experience with wining and dining to drive business for all alliance partners.

Free BeerThey Cant Give the Stuff Away

The beer market is tanking in the U.S. Consumption is down 53%, according to Advertising Age, which explains that "the factors driving this seachange in alcoholic beverage consumption habits range from a blurred image for beer brands to consumer affection for luxury goods, to the withering away of blue-collar institutions where beer was part of the social fabric." Agencies and brewers alike are scratching their heads wondering how to create a point of difference and appeal to the shift in appetites. For clues on stemming the bleed, see Amex piece above.

Information Technology Will Come Roaring Back

Look for IT to come roaring back into the sponsorship market next year. Based on feedback from a recent Silicon Valley thought leaders conference I spoke at, I can tell you these guys learned what advertising couldnt do for them during the dot.com implosion and want to get schooled on sponsorship marketing. Many of their agencies seem reluctant to help them develop portfolios (apparently too labor intensive, not enough money in it for the agencies) so these engineers cum CMOs are left to experiment. Results have been mixed. They figure it needs to be an in-house function and they want to build their chops. Also, look for Google to come on as a true media property. Google will begin sponsoring events and creating promotional alliances in the same fashion as print and radio have before them.

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April 05, 2005

Coke Cracks the Code for Growth -- Mary Minnick to Head Marketing

Coca-Cola headquarters announced it will put Mary Minnick in its top marketing job. Minnicks ascension is a clear sign that the beverage giant is looking to invigorate profits by focusing on a new line of beverages, rather than defending mature brands. Widely respected, even by the good-old-boy culture at Coke, Ms. Minnick successfully introduced new beverage lines in overseas markets. In Japan, for instance, she launched Body Style Water, a low calorie "near water" that contains extracts from seaweed and grapefruit. Extremely popular with Japanese women, the product has tested well among U.S. women.

Glancing at Cokes roster of possible brands it may introduce under Minnicks leadership, one pattern stands out. These are not slam-dunk, no-brainer products. On the contrary, these are sophisticated beverages with a range of healthful additives that require a little consumer education to appreciate. Coke must know the American market is ready for it.

What does this mean for Coke's sponsorship portfolio? Well, the more people are reading labels and questioning the foods they ingest, the better these new products will do. Bottom line: look for more leveraging of the philanthropic budget to promote educational causes, literacy, and ties that advocate women taking better care of themselves. This will be overlaid by advertising imagery that fuses stamina with wisdom about "smart" choices that refresh and renew body, mind, and soul. Ahhh, the pause that refreshes.

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March 23, 2005

GM Sponsorship Deal With Major League Baseball

Advertising Age reports that General Motors Corp. and Major League Baseball will announce a new sponsorship agreement that makes GM the exclusive car maker of the MLB. It seems these two beleaguered organizations have not so much joined forces, as agreed to commiserate.

Financial terms are being kept under wraps. One baseball executive told Advertising Age, on the condition of anonymity, that the deal could be worth $20 million-$30 million including media buys. Could be. My hunch is that there is less cash and more media in the deal, something GM buys by the truckload. MLB is motivated to preserve its television presence in light of the implosion of the NHL, whose struggles were aggravated when television executives raised concerns over poor ratings, forcing many of the teams to pay cash for broadcast time to air their games.

General Motors is in its own wipeout. Two weeks ago, GM put its $3.5 billion dealer group co-op media-buying account into review. Just last week, the car maker warned Wall Street that its profits for 2005 could be down as much as 80% below expectations.

GM doesnt seem to mind the tailspin, agreeing to a multi-year alliance with a pro-sports franchise in serious trouble. Forget sophisticated market research, all it takes is scanning a newspaper or watching the news to realize that Americans have lost their love of the game, not to mention any admiration for the men who play it. Unless, of course, GM knew a fixer-upper when it saw one and if so, MLB will keep the cash part of the deal hush-hush...because there isnt any.

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March 10, 2005

The Philadelphia Flower Show: The Super Bowl of Home and Garden Expos

Flower shows have been popping up across the country like spring crocuses. No matter how many contenders enter the field, the Philadelphia Flower Show, running this week, reigns supreme.

Presenting sponsor, PNC Bank , has made smart use of its sponsorship with VIP wine receptions, on-site card usage programs, and a PNC-named pavilion that doubles as a meet-up site for the over 275,000 visitors expected this year. Last fall, I spoke with Regina Hager, Director of Corporate Communications about PNCs sponsorship investment in the show. Hager explained that PNC loves the event because the banks premium customers love the event. Hager also cited loyalty, business-building opportunities for PNC bankers, not to mention regional civic pride that translates into major media coverage as PNCs other reasons for the tie.

Gardening is becoming big business. Even organic gardening, once a fringe past time, is today a mass consumer movement with over 11.7 million households buying organic fertilizer, according to the National Gardening Association.

Key insight: As the age of cocooning fuses with appreciation for the environment, look for more strategic alliances to blossom between product manufacturers, retailers and community-wide gardening initiatives. Home and hearth are so done. Spade and soil are where its at.

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February 14, 2005

Sponsor Focus: Cadillac Turns Its Ship

Strolling through the auto show recently, I couldn't help admiring the Cadillac display. They have come a long way. Talk about an entrenched, legacy brand re-inventing itself. Cadillac has turned the ship.

Much is said about the negatives associated with change. Pain metaphors abound. By contrast, little is said about two of the positive aspects of change: will and thrill.

Sometimes, brands embark on new marketing tactics to gain a little market share or defend the brand against insurgent competition. Often, this is the uninspiring grunt work of marketing.

But what stirs the blood of the marketing team, distribution network, and ultimately the consumer is the will to be bold and the thrill of being part of a brave new departure.

I can't think of a better example than Cadillac. I have tracked them for years, in part because they have mastered the subtleties of sponsorship. A decade ago, they realized that sponsorship marketing is not one-size-fits-all exercise when they targeted women. They had the will to dump their expensive tie with LPGA and sponsor home and garden shows when they realized women aren't passionate about golf the way men are.

No longer the preferred automaker of the land yacht of the 50+ white male, today Cadillac is an energetic, design-driven automaker seizing the 35-50 year old female and male markets. Why? Because they are thrilling to look at, as well as drive.

Check out their marketing convictions and the strategy that goes with it http://metacool.typepad.com/metacool/2005/01/why_cadillac_wi.html

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January 31, 2005

How to Address Sponsorship Trends and Win

Last week, I wrote about trends to watch for in this year's corporate sponsorship marketplace (see article below). This week, I will focus on what to do about them.

Bottom-line: Sponsors are under a great deal of internal pressure to perform.
A pressure-filled market like this one will reward partners who provide friction-free experiences for sponsors, that is, fairly-priced deals from partners who deliver on their promises.

What to do about it: Simplify, Streamline, Have Some Fun
Look to plug leaks in the delivery of the package of rights and benefits that drain value out of sponsorship ties with wasted time and energy. Are you taking too many steps in negotiating a contract and racking up legal fees? In that case, build more "upfront" contract discussions into the sales process. Are there services you could take on and build into your pricing so the sponsor doesn't have to staff it? Make those ala carte if you wish, and be mindful not to stray too far from your core strengths. And while you are at ithave more fun. No kidding. When performance pressure goes up, try not to contribute to it. Instead, work at making difficult things seem easy. Consider the Dustin Hoffman character from "Wag the Dog." When faced with calamity, he would shrug it off saying, "This? This is nothing!"

How to make the case:
Good partners prove they can protect a sponsor's margins, not to mention their own. To make this case, pitches and proposals need to address solid measurement and reporting tactics, along with softer "goodwill" pledges to work together on each other's behalf, and take full advantage of each other's strengths to avoid redundancy. Back those promises up with testimonials from happy sponsors and you will be armed to compete in 2005.

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January 18, 2005

Out With The Old. In With The New.

This year is shaping up to be a watershed year in a maturing sponsorship market. After three years of sluggish spending, it is fair to ask where growth will come from in 2005? Will it come from companies wringing dollars from community affairs and corporate philanthropy, or will marketing departments shed their fears of about the complexity of sponsorship and start spending on these more innovative ties? The answer is: a bit of both. Here are some trends to look for:

1. Look for downward pressure on pricing across the board. Premium fees will go to partners who can prove that their context defines a brand, delivers messages precisely and memorably to give the investment some staying power that straight advertising cannot. Still, big ticket items will struggle to find buyers.

2. The overall economic trend toward inflation means consumers will pull back and get more selective. This is good news for properties that can prove loyalty and razor-sharp segmentation.

3. Business structures around sponsorship will grow more complex. Pressure to demonstrate return-on-investment will remain strong. This will benefit blue-chip properties.

4. New entrants to the market can still win if they have a ground floor/equity pricing model, have media tucked into their offerings, and/or super savvy marketing insights that can take sponsors to places untapped.

5. Corporate philanthropy will become a tool for marketing innovation. No longer the frumpy step child, philanthropy will actually drive in-house creativity. This is the result of corporate philanthropy departments and public affairs personnel crossing over and working collaboratively with their colleagues in other departments. Since their budgets are held to different measures, there will be a renaissance in corporate giving that will deliver both high profile and proprietary campaigns as marketing and philanthropy synergize more effectively.

So, how do you make hay with this information? Check back next week for some practical "how-to's" for exploiting these market trends to keep your corporate sponsorship program humming.

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December 23, 2004

Thoughts on the Holidays

Merry Christmas, Happy Chanukah, Blessed Solstice, Happy Kwanza.
This season has seen a plethora of holiday expressions with cause-marketing programs everywhere in the yuletide mix.

Last year, I predicted that cause-marketing programs would become standard, the "greens fees" if you will, for marketing to consumers. This year, cause-marketing programs set the tone of social responsibility. Some argue that it assuages guilt from a holiday time that has, in the words of my pastor, "Lost its soul to commercialism."

So be it.

As long as there are worthy causes, as long as there are charities willing to cure the sick, feed the poor and provide representation and expression to the voices that would be otherwise silenced, then let the season be the circus that it has become. It c