globalmarketing

Does “tweeting” mean you’ve figured it out? Does knowing how to “friend” someone qualify you as a modern marketer of the new advertising age? Hardly. In fact, reaching that lofty goal is less about the tactics we employ, and more about our overall approach to the complexities of the modern consumer.

Our jobs are becoming more demanding. Big businesses now operate in a multi-market, multi-lingual, and frequently multi-brand world. A world filled with commercial and cultural nuances. The modern marketers I respect are finding ways to address these nuances by developing cross-market and cross-brand efficiencies. They’re fostering smarter collaboration across teams, agencies, and disciplines, producing big brand ideas that transcend tactical executions and work in markets of varying sophistication, and they’re leveraging their scale to lower costs while focusing their marketing dollars in the right growth areas. All while producing great work.

My personal fascination lies in the fact that digital marketing — and at a minimum Internet based technology — is helping to drive this evolution. Digital marketing is at different stages depending on which markets you are working in around the globe. But in almost all instances, it seems to function as the great connector that helps to bring cross-channel experiences to the consumer.

Digital, once deemed complex and expensive by the rest of the advertising world, actually offers the ability to produce re-usable libraries of common tools that can be shared across markets and brands, empowering them to focus their budgets on brilliant creative ideas instead of unnecessary technology that had been used multiples times in the last year by other agencies and brand teams.

Social media monitoring tools can be set up for enterprise businesses and deliver intelligence to multiple brands across multiple markets at reduced costs while facilitating a deeper understanding of the consumer. Web based collaboration tools are helping to produce better ideas, faster, with equal input from brand agencies, digital agencies, and media agencies.

I’m not discrediting the importance of innovation. I’m the world’s worst culprit for loving new exciting platforms in digital marketing. I just think we need to step back and reevaluate what makes us pat someone on the back for being in a “digital master class” that understands modern marketing. Some of the biggest companies in the world who frequently get accused of being laggards are realizing how scale and digital marketing play VERY well together, and could form the cement in their global marketing initiatives.

In the end, modern marketers are putting their money where there mouth is and, as a result, giving their agencies what amounts to a thinly veiled, but no less justifiable ultimatum: show us results, the analytics to support them, and develop creative in a cost effective way, or we’ll find someone who can. We should all heed the warning. Those who don’t? Well, then they don’t know “tweet” about modern marketing.

What does it take to make a successful iPhone application?

Before answering what does it take to make a successful iPhone application we have to define what makes an application successful. Sapient always asks why are we building something, what are we trying to achieve, and how are we going to measure it; so starting from top down, what are the business objectives, the key performance indicators, and all metrics. iPhone applications usually serve one of two purposes: drive brand or drive revenue.

Objective: Drive brand
Applications that drive brand most likely are free since they have to target a broad reach. Objective is usually increase awareness, brand recall, or word of mouth, and is traditionally measured based on simple downloads, usage, and extended with how many share with friends, stickiness, and engagement levels. A good way to take it one step further is tie in social media monitoring and analyze share and velocity of voice, general sentiment, and overall impact of the application within social conversations.

Now that we understand how to measure it, what will the application do? Nowadays brands cannot push messages to the consumers, they have to provide value and we generally call it brand as an enabler. Applications that drive brand usually fall under one of two categories: be entertaining or be useful. Entertaining applications usually have a wider adoption, more downloads, but less engagement as users open it just a few times before they get bored. Useful applications have a smaller reach but higher engagement; less users will download the application, but they will use it much more than simple entertainment applications. However the key for both types is simplicity.

Objective: Drive Revenue
Revenue can be driven directly by the application, or indirectly but multi-channel tie-in with retail and stores. Indirect revenue usually aims to drive users to store fronts, partners, or provide reasons for the user to purchase products or services. Whereas direct revenue is generated by the application. Measurement towards these objectives are always dollars.

Direct revenue can be generated from advertising or downloads, and both have different strategies. Revenue from advertising is similar to brand-driven applications: it aims to reach as many users as possible by providing free entertaining or utilities, and collect revenue through 3rd party advertising. However, download revenue can be a little more complex as it involves pricing strategy.

The secret to maximize download revenue is pricing. The most popular paid applications are priced between $0.99 and $3.99, with predominant 99 cent applications. These applications are what we call the big-fast-sales. Most users download them and use them once or twice; they’re predominantly entertainment and provide small value to the consumer, but the mass download provides great initial revenue and then stops. The most grossing applications are actually priced between $4.99 and $9.99 at 44% and account for 44% of revenue. These applications are downloaded less, but used much more often as usually they do provide value.

Here’s a simple framework to determine your iPhone application strategy

  • Set objectives – what is successful?
    • Drive Brand – Free
      • Entertaining
      • Useful
    • Generate Revenue
      • Direct Revenue
        • Business models
          • Free apps
          • big fast sales
          • sustained sales
        • Revenue Models
          • Thru ads
          • Thru downloads
            • Pricing Structure
              • Most popular $0.99 at 50% and 0.99-3.99
              • Most grossing $4.99-9.99 at 44%
      • Indirect Revenue
        • Cross / Multi-channel
        • Point of Sale

Conclusion
So what does it take to make a successful iPhone application? You need a strategy, know what you want, how to get there, and how to measure. Keep it simple, make it engaging, and provide means to share and pass-along.

mobile holy territory

Simply put, I’m excited about the potential of mobile marketing and particularly the convergence of social networking and mobile. New capabilities on phones are opening doors to limitless new marketing innovations and, simultaneously, developing countries are having entirely new segments of their population enter the digital world. I spend a lot of time in the day dreaming about how to bring entirely new digital experiences to people, but I think we need to proceed with caution. Marketers, the frequently reckless group of individuals we are, are in danger of screwing it up (again).

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Will Advertise For Food

I’m sure I’m not the first one to tell you: We’re in a recession.

The doom has advertisers hanging signs along the lines of “Will Work For Food” on their agency walls, and marketers continue to face facts and figures like these, from Forrester’s 2009 Global CMO Recession Survey: 71% of marketing budgets have been reduced this year, and more than half reported reductions greater than 20%.

Now here comes the curveball: I think this might be the best thing that has happened to our industry in decades. Yes, I said that. While I have empathy for those that have lost jobs and the extra pressure many of us are facing, it’s also forced us to innovate, reinvent ourselves, think more strategically, and, most importantly, bring a level of sophistication and maturity that, in my opinion, has been desperately missing from digital advertising throughout most of the industry.

There are five trends I believe are reshaping the face of marketing.

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The past year, although troubling and difficult for many people, has been a fascinating period in advertising. It has caused fundamental shifts in the balance of power between traditional and digital shops and, more important, changed the way that most savvy agencies approach marketing. Results are still king, but budgets are becoming more and more scrappy and if that wasn’t challenging enough, the client is standing behind you with a pitchfork just to make sure that you stay on form.

This new marketing climate has businesses and brand teams embracing blogs and open-source content-management system (CMS) platforms to drive their new sites. While this shift is being viewed as a reaction to tough economic times, using tools like Drupal, Wordpress, Ping.fm, Twitter, Facebook Pages and others doesn’t have to mean you’re trying to take the cheap route. The fact is that these tools embrace open architectures that have a lot of work (particularly social media integration tools) already built into them.
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