Why Brands, Agencies and Platforms are Dysfunctional

I have brought this up before that the goals and objectives of the various stakeholders in Advertising/Marketing do not work in Synergy. In fact it is a very dysfunctional ecosystem.

To highlight this recently Ad Age had an article about Facebook replacing Google as the disruptor of online advertising  and when you read the article it becomes clear. If your business makes money by this being true you agree with the power of Facebook for marketing. This means Facebook, App makers, and Social Media Agencies care only about spending as much of your money as they can get from clients and thus Facebook is a must spend. If you are on the Brand or Strategy side you care about selling the most product at the least amount of spend and want to look at all options and maybe Facebook is not the best place to spend money.

See what is wrong here? I can show Pepsi how to spend 10% less on Paid Advertising and still achieve the same amount of sales. Pepsi's lead Agency has no incentive to reduce their billings 10% and do the same thing.

When I talk to clients I advise them that even if they do not hire me, that they need an objective voice who is on their side. Every platform/media channel that offers paid advertising will tell you they are the best fit for your Brand. Every Agency will steer you to what they do for a living ie: TV, Print, Digital etc. They will all have a spin and none of them will give you a pay for performance offer. In fact they will all offer you more ways to sink money into the same hole.

There is nothing wrong with businesses and people being motivated by money and their own self interest. But hiring a consultant to work on strategy or help you decide if your money is being spent well is a great idea. 

How many Brands have been approached by someone in the Paid Advertising or Paid Service (such as farming out your Social Media) that said 'I was looking at your Brand, Product, and Goals and I really feel instead of using us or our product you are best off going to a competitor or other product, channel or platform'?

And when it comes to Facebook they have 850 million users. Who on average spend 20 mins a day on their network. Which means those users are spending on average 15 hours and 40 minutes a day not on that network. And we all know most people spend less than 20 mins. But say everyone did. That comes out to 2.1% of your waking day on Facebook. Where would you spend your money marketing? Disruptive for Advertising? Not yet.

Social Commerce is Just Commerce!

I hate when the tech and media industries create cutesy names for no reason. For some reason when Commerce is conducted in some way through or on a Social Network they name it Social Commerce.

com·merce

 [kom-ers]

noun

1.

an interchange of goods or commodities, especially on a large scale between different countries (foreign commerce) or between different parts of the same country (domestic commerce); trade; business.

2.

social relations, especially the exchange of views, attitudes, etc.

3.

sexual intercourse.

4.

intellectual or spiritual interchange; communion.

5.

(initial capital letter) Also called Commerce Department. Informal. the Department of Commerce.

 

Wow did not know number 3 was part of the definition maybe we view this sex for money thing completely backwards?

Anyway, back to my point. Bloomberg had a great article on how major brands are shutting down their Facebook Storefronts. I have seen some of these storefronts. The fact is they are like one of those center kiosks in the mall vs what an actual store holds. And you can't do on Facebook the things you can do on your own website and trick it out with tons of inventory, bells and whistles etc. I called failure on this in the past and not surprised this didn't work. People don't go to Facebook to shop. In fact why would you? If I wanted to buy a product from a brand online why would I go to Facebook and not their website which is just as easy to get to, more robust, or and who trusts having Facebook see your credit card number anyway?

But if I buy something on Facebook is that different than Amazon or physically in Starbucks? No it is all the same. So let us just be honest and call it Commerce ok? E-Tailing? Is RETAILING! E-Commerce? Commerce. Get it? Nope?  Why I aughta.... <SMACKS UPSIDE OF THE HEAD> Capiche? Good.

Oh and for some comedy Forbes which I never read because they are the Mashable of Business Trade Publications allowed a company that makes storefronts on Facebook to counter the Bloomberg article. They give a graph supporting their business with no numbers. Hilarious stuff.

Online Privacy Redux

I have written about this before. Especially in my previous blog I covered this major study 

Today Mike Bloxham had an article on Media Post discussing why Brands need to view this as their issue too.  It is a great read and he makes many very key points. I have railed and laughed at Pete Cashmore of Mashable for declaring privacy dead in 2009. To many of my peers and marketing/ad agencies/tech companies feel because a tool is used people do not care abut privacy. Mike hits some key points on these false view points.

The fact is beware. No one trusts Facebook even though most people use Facebook. But doesn't anyone wonder if there was an easy alternative that we might all leave immediately? Is there a wonder at why in April 2010 Facebook said on it's Fact Sheet Page that users spent 55 mins per day on average? And now that number is ranging from 11 to 21 minutes from various sources (Facebook has removed any claims on time spent now). Yes we now spend time elsewhere. But also many do not trust Facebook.

So Privacy is a Valid Concern for Brands not just Social Networks. Trust is important even if we begrudgingly allow certain activities it does not mean we condone them. What is interesting in the study I linked above is not just the percentage of people against tracking online, it is the high percentage who want jail time for managers of businesses that get caught doing this without a person's knowledge.

We are used to Politicians not listening to the people. But Brands beware if you do not listen the public has a much easier time turning on you and impacting your business.