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Create Demand or Engage the Brand?
Posted: 12/16/2009 2:50:58 AM    Total Views: 10    Total Comments: 0
Posted by: Ellie Johnston

Doug Weaver, founder and CEO of The Upstream Group, a kind of think tank for digital advertising, fears that advertisers will continue to decrease their branding efforts and increase their direct response methods.  Weaver seems disappointed by this trend and seems to see it as a kind of reactionary response to the increased use of metrics, analytics and data.  He attributes this to a limited mindset, that CMOs and agencies are just following the herd and doing what has been working for the last 15 years, as in --act now, limited time offer, just 3 easy payments of $29.95 and this Obama Coin/Ab Roller/Snuggie could be yours.


 Weaver asks: “What's the motivation for any buyer or client to ever let go of the very metrics that have helped them successfully drive down digital media prices for over a decade?” 


 To which I answer: “when it stops working.” 


 Of course that will become apparent after the fact, but that’s just how it goes.  Even if I know all four tires on my car need replacing,  it will probably take a blow-out on freeway 405 or backing over a nail before I take action. We’ve all been hearing about the decline of traditional media but it has taken a severe economic recession to really wake everyone up to the digital reality.


 But here’s the key, just as markets continue to fragment, branding as we know it, will further evolve and change. In many instances direct response will remain a viable option –especially for products and services that are more about value than prestige. Luxury most likely will never be a good fit for DR methods (unless there is a “going out of business” sale).  As luxury is about extravagance, indulging and having the best, therefore price is not the main objection. Your friends and colleagues may not know if you buy branded or private label cold medicine but they will most likely see what kind of car you drive, phone you use and clothes you wear.
 Marketers can employ and manipulate technology to our heart’s content. The direct response pipe line need not be viewed as an all-or-nothing game.  It works tremendously well with the right products and services –ones that serve our most base desires to make money fast, grow back a youthful head of hair and get rock hard abs in minutes. It can also kick-start a new consumer relationship.


 Branding as mere reach and repetition does not seem to be the answer anymore. The word of the day is “engagement”. Of course, it cannot just be any old engagement.  It might be useful to rethink agencies as party-planners and match-makers. Via social media we’ll be kind of dating the brands we take a shine to. We will get to know them as a “person” not just as beautifully art directed magazine ads and stiff price tags.  We will ask ourselves, “Do my friends like you?” Or “Do my ‘friends’ like you? “  “Are you right for ME? If I spend my money on you, will you embarrass me on Facebook by having a lame profile and trying to use me to get to my 193 friends?”


 While I am never against accusing people of being old and stuck in their ways (that’s always a safe bet), I think Weaver is missing a critical point.  We are all confused.  How will we make it out of this recession? What newspapers will still be standing? Will our credit cards be made into Swiss cheese from so many, many micro-payments to access this or that? What role will agencies and CMOs play in this digital soup?  Nobody really knows but I place my money on further fragmentation and the use of data to increase engagement rather than rewarding mere exposure.

 

Categories: Branding, Performance Marketing, Agencies, social networks
Tags: branding, agencies, doug weaver, ad networks, pricing, direct response
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