At this week’s summit in New Mexico, conversations focused on integration, consumers and adding value, a dialogue going beyond R&Fs and impressions.
One can’t help but feel a bit spiritual while visiting the sacred lands here in New Mexico. And as Howard, a native to this fine land, said a prayer for the iMedia Brand Summit attendees, and then related his people’s past and present culture, he set the tone for the week’s keynote speeches and presentations.
Indeed the theme that emerged was one of the passing of one era and the emergence of another. In particular, gone was the whining of old about new media not getting its fair share of the dollars. In its place was mature conversation focused on strategy, centered around integrating i-media into a holistic marketing mix.
For example, the first presentation of the Summit was conducted by Mark Walsh, former chief technology advisor for the Democratic National Committee, who shared insight into how politicians can, should and are beginning to market themselves via the Internet, email and so on.
Walsh related that politicians currently are reverse marketers in that they release very little real information resulting in disempowered customers. “The Net will not let this continue,” he said.
Walsh added that candidates who are able to brand themselves, and who become net-centric at the right time, will begin to win the most.
Indeed, following Walsh’s presentation, keynote speaker Robin Kent, CEO Universal McCann, stressed that there have been a lot of proof points for interactive marketing this past year, including IAB’s cross-media studies and research from Harris Interactive on Generation M that shows the Net being youths’ number one medium.
(Another proof point actually came later in the same day when Michael Lanz, VP Western Regional Sales for Nielsen//NetRatings, provided statistics showing growth on online spending by large industries, with financial services companies, Telcos, auto manufacturers and pharmaceutical firms leading the way.)
“Interactive is becoming more important everyday,” Kent said, adding, “but it’s still just a part of the overall plan.”
What is really going to create impact for the industry, he said, is understanding consumers’ behaviors and their cultural views based on the media consumed. Also – getting to full accountability.
Media people who are media neutral and understand the relationship between consumers and media are in the best position to lead the interactive evolution, Kent said. He also believes a lot of resources are necessary to get to the full-scale evaluation needed, and that all marketers should insist that a percentage of every budget should be spent to evaluate cause and effect.
One company that has shown cause and effect from its online marketing is Hewlett-Packard. Bill Sidwell, director of global brand strategy, shared in his keynote address how the Net played a significant role in helping change consumers’ perceptions about HP.
It wasn’t just about repositioning the brand after the merger with Compaq, he said. “We saw a unique opportunity to address customer needs and tell stories in a way HP had never done before using the Net.”
Relating stories such as how DreamWorks used HP software in creating “Shrek” or how HP digitized the masters from a national art gallery and made them printer-available for art lovers effectively changed consumer perception about HP being a solutions’ provider rather than just a printer company.
Connecting with consumers, as HP did, was another theme that kept popping up during the Summit. Jonathan Berry, VP, senior research director for Roper ASW and co-author of “The Influentials” told of a particular group of consumers that is imperative to connect with.
Influentials are highly engaged, want to learn more, are connected to twice as many people as the average person, and have a track record of impact and leadership. They’re also on the Net, with 95% online everyday.
To connect with Influentials, Berry said companies should open a conversation with them through ads, previews, samples, events, causes, etc.; speak their language (their key values are relationships, integrity and exploration); break down the walls by inviting critics in; keep the dialogue going; be like them by sharing their passions, building relationships, having impact; and be willing to listen to them.
“This is a time of opportunity,” said Berry. “The Net is integrated into Influentials’ purchase process, and they expect Net marketing.”
Interestingly, Influentials are not big TV watchers, although Berry said they do watch big events like the Super Bowl and the Academy Awards. For consumers who do watch TV, however, iTV is becoming a reality, and a panel on Tuesday addressed the advertising applications.
Ben Mendelson, president of the Interactive TV Alliance, defined iTV as new things the viewer can do with the remote control, and new relationships for advertisers with viewers using new tools. ITV includes everything from video on demand and digital video recorders like TiVo to enhanced TV and home entertainment gateways.
Panel members, which included Marty Yudkovitz, president of TiVo and Thomas Hagopian, SVP/general manager OpenTV, agreed new advertising models are needed given the fact that consumers skip commercials, either by leaving the room or using new technologies like TiVo. There was little conclusion, however, as to what the new business model will be other than that there’s a real need to understand consumer needs and behaviors, and to provide premium, value-add advertising.
Adam Gerber, SVP MediaVest Worldwide, likened the discussion on iTV to discussions about Internet advertising several years ago.
As I already said, the industry has come a long way from those early discussions, a fact that was cemented by representatives from the three Internet heavyweights, MSN, AOL and Yahoo! In fact, when asked specifically what has been talked about too much, Yahoo’s Wenda Harris Millard said T&Cs and AOL’s Michael Barrett said R&Fs – issues of constant debate at past conferences.
What needs to be discussed more? Harris said creativity, Barrett said common data standards and MSN’s Joanne Bradford said recruiting people into the business from the traditional side and making the process easier and more profitable.
Current initiatives being undertaken by these groups include providing easy proof points on the value of the online proposition to drive adoption (MSN); developing product segmentation with tailored content areas such as a kids’ AOL, teens’ AOL and so on; and helping the creative community create compelling, engaging content (Yahoo!).
An initiative discussed later in the day was the idea of an Upfront for the interactive industry by which buyers could designate dollars against editorial calendars or events (the World Series, back-to-school, Christmas) in advance, ala television ad buying. Although the idea was met was a lot of enthusiasm by many in the crowd, there was also skepticism expressed about commoditizing property and crushing prices. Stay tuned for further discussion on this topic in the months ahead.
In the final keynote address, Rob Norman, chairman Mediaedge:cia UK, further elevated the conversation by illustrating the new marketing model companies today must follow in order to “weave brands into the fabric of consumers’ lives.”
The old media agency model, he said, was to apply advertising or sponsorship to TV, print, radio, outdoor, cinema or the Web.
The new model – what Norman calls the communication planning agency model -- takes a different approach. In this model, all of the above media are lumped together as paid media, and other options include events, in-store, viral, mobile and iTV. And in addition to advertising and sponsorship, one must also consider direct marketing, programming, PR and promotions.
Outside my room, the spiritual Tamayan winds are blowing. I sense there’s also a wind of change on the horizon for interactive marketing.