More Unusual Overlap on the Gigantic Venn Diagram

Often on Ad Majorem we discuss the Gigantic Venn Diagram, a concept that captures how the media landscape continues to change all the time and how consumers use media in a lot of different combinations.

This morning I’d like to direct your attention to a good article that should have been datelined from “An Unusual Overlap on the Gigantic Venn Diagram.” No, not The Twilight Zone. The QR code.

Yes, the QR code. It’s been criticized for a number of reasons, mainly due to its misuse by clueless marketers who insist on putting it in useless places like 30-sheet billboards along major highways.

David Henkel points out, however, that a QR code can be an effective direct mail tactic. Now that U.S. smartphone penetration exceeds that of feature phones, it's easier to imagine someone using a QR code to get more information about the product or offer they see on a piece of paper.

I hasten to add that like all technology, QR codes are not a solution unto themselves. Consumers will only respond to them if marketers communicate something relevant enough to cause a response.

So, here’s an overlap on the Gigantic Venn Diagram to think about: Direct Mail, Mobile, and Websites. It hits all of the Three Ds (Digital, Direct and Data) but better still, it recognizes how consumers use media.

Thanks to my colleague Patrick Moorhead for pointing out Henkel’s article.

Hyper Island II: The Network

NEW YORK – Every day at Hyper Island starts with a “morning reflection”. You get a chance to stop, consider what you’ve learned and how to apply it. Then you share insights in group discussions. It’s mandatory to take a lot of notes, which I’m repurposing here as a blog post.

Networks are the Base Unit of Communication

I learned a lot on Day 1 but the one thing that most changed the way I think was the concept of Networks. Your Network is the list of people you choose to read, listen to, and interact with.

Our lecturer, Mark Comerford, said this: “Networks are the base unit of communication. If you don’t reach the Network, then you don’t reach me.”

That was a radical idea for me, not because of my experience with mass audiences, but because I made a mental shift some years ago from mass audiences to one-to-one communication. My newer paradigm has been that Digital, Data and Direct all work together, allowing us to engage people in ways relevant to them, and measure the results.

In a bit of self-analysis, I realized that I had seen each individual person as their own gatekeeper – and that is true, by the way. What I had been missing is the fact that each individual person relies on their Network to be a gatekeeper. The implication for marketers is to figure out how you are going to offer something of value to these Networks.

That value is what matters to the Network of people. The currency of the Network is stuff that’s interesting to its members.

What My Network Taught Me This Morning

After a few minutes of journaling, we sat in a circle – a Network, if you will – and shared our insights.

My good friend and colleague, Terry Corrigan, shared something that anyone coming from a traditional ad agency background, big or small, would want to hear.

Terry observed that “the digital space isn’t about selling, it’s about being useful.” Many of you know this. He went on to describe how “being useful” builds brand equity.

Many traditional agency people and their traditional clients think about brand equity as a function of the TV advertising. What we say, how it looks, what products we choose to advertise – all of these contribute significantly to a brand’s equity.

The same applies to digital programs. Best Buy’s Twelpforce and Zappos customer service build brand equity. Motrin’s ignorance of the space hurt their brand equity. Brand equity is your reputation.

This point is significant because many clients ask about the ROI of Social Media. Instead of dissembling because we don’t know how to calculate the ROI, we should make the impact on brand equity part of the answer.

Time again for lunch. You can follow our Hyper Island Master Class on Twitter by searching for the hashtag #HIMC.

Direct Marketing will continue to influence advertising

Last night the Chicago Advertising Federation honored Howard Draft with its Silver Medal Award for lifetime achievement, which honors contributions to the local ad community as well as the community at large. The venue was a large dinner at The Drake Hotel and it was fantastic to see a lot of people I’ve worked with over the years.

Howard has obviously achieved a lot, including a series of agencies with his name on the door, which was a running joke throughout the evening’s remarks. It’s not all chest-pounding, though; Howard’s myriad agencies have been very successful. (Full disclosure: If you didn’t know, I work at Draftfcb.)

Direct Marketing in the Past

Most of Howard’s agencies were of the direct marketing variety. Back in the day, “Direct” had always been a little too scientific for most of the big ad agencies. Only David Ogilvy called it his “secret weapon”. The other agencies knew it was powerful, but as Rick Fizdale said last night, “What I knew about Direct could fit in a thimble.”

Fizdale, former Chairman and CEO of Leo Burnett, told the story of how he led an effort to acquire Kobs & Brady, the 1980s powerhouse Direct agency, and in the process met Howard for the first time. The acquisition didn’t happen, and I would never do justice to Fizdale’s version of the story, so I won’t try to retell it here.

One line of the speech is worth pointing out, however. Fizdale referred to “The advertising I practiced and the advertising (Howard) had mastered.” He was comparing traditional brand advertising and Direct Marketing, but what I loved about this line was how casually and naturally he declared both disciplines to be advertising.

Direct Marketing in the Future

Howard, in his acceptance speech, told how he failed to get a job at an ad agency when he was first starting out, and instead landed at a Direct agency. “I firmly believe,” he said, “I wouldn’t be here tonight if I hadn’t gone into direct marketing.”

This is true for a couple of reasons. One is that Direct allowed him to be the entrepreneurial guy he is, outside the stultifying structures of most traditional ad agencies. The other is that he prepared himself for the turn-of-the-century shift toward accountability in marketing. Direct had always been accountable.

This trend will continue, unabated, for as far as any of us dare predict. We’ve posted before about Direct, Digital and Data, and how you can’t have one without the others. The Digital Age is really the continuation of the Direct Age. Data gives us the ability – and the burden – to be accountable. In this way, Direct Marketing will continue to influence advertising.

PT Boats versus Battleships

Big agencies have always been faulted for moving too slowly, especially when it comes to embracing fundamental changes such as the advent of TV in the 1950s and digital in modern times.

We can all learn from small agencies, including ones outside the U.S., because they move more nimbly and adapt with the times much more easily.

I recommend this AdAge.com article by Andy Gould, who shares his small agency experience embracing digital over the past ten years. There is a lot of wisdom here.

Big agencies are not bad; they have a lot of benefits. They are battleships, however, with much to learn from the PT Boats.

The Three Ds of modern marketing

There are Three Ds of modern marketing you dare not ignore: Digital, Direct and Data.

Yesterday's post about the "constant process" of online media ("Digital" to some of us), got me thinking about the Three Ds, which have been a recurring theme lately in my daily work.

The "constant process" of Digital means that you don't just launch a campaign and see what happens. You launch, measure and optimize.

This is exactly the same with Direct, the second "D". When I was an AE at Leo Burnett we proposed to our client an inbound telemarketing program ("an 800 number" to some of us). Burnett's direct marketing department was new, and we had hired an incredible talent in Tom Collinger, now a professor at Northwestern University. His words to the client stick with me to this day: "If you launch a program like this, it's a commitment. You never really turn it off."

Direct, like Digital, is an ongoing process. The whole purpose is to establish a relationship that makes your brand or product line meaningful enough to a consumer that they will continue to receive and respond to your messages. Increasingly they will send messages of their own, which also have to be measured.

Both Digital and Direct depend on Data, the third "D". The measurement and optimization is all performed based on how consumers respond to your message, and that response is more measurable than ever. As Lester Wunderman recently (under)stated: "The science of data has really built (the direct marketing) business."

Not only must we recognize these Three Ds of modern marketing, we are practically compelled to use them in combination. It would be inadvisable to run a Direct program without Digital and impossible to run one without Data.

These couldn't be a Venn Diagram because the circles would be right on top of one another. I prefer to think of these Three Ds as a 6-4-2 double play combination in baseball, like Tinker-to-Evers-to-Chance.

Whatever the right analogy is, these are certainly the right combination. Historically, marketing has been based on events that we execute, that succeed or fail, and that teach us lessons to apply next time. In the modern era we can learn those lessons in real time and adjust accordingly, driving up the sales curve as we go.