Lessons from expensive marketing failures

2. The Google killer stubs its toe

Cuil is another tech startup in a long line of such that hope to grab a piece of Google's humongous ad action by doing search better.

It called itself the world's biggest search engine, claiming that the 120 billion web pages in its index was more than Google's. This boast instantly raised expectations, along with the pedigree of its founders, two former Google execs. Cuil would be a "Google killer," people began to say. Intense interest was fired by influential tech bloggers like Michael Arrington of TechCrunch, who gushed in September 2007, "The murmurs about new stealth search engine Cuil (pronounced "cool"), which were barely a whisper earlier this year, are gaining strength and are starting to reverberate through Silicon Valley gatherings." In a later post, he fired up the buzz with words like "super-stealth," "secret sauce" and "massive search engine." Tech bloggers followed his lead.

By the time Cuil launched in July 2008, there was no way it could live up to the hype. More than 50 million visitors overwhelmed its servers and, worse, search results weren't all that good. Traffic to the site peaked in August at 1.5 million visitors, according to Quantcast, but plummeted faster than the mortgage securities market, dipping to .4 million users at the end of September. By then, Cuil was the "ill-fated" search engine.

This was a perfect word-of-mouth campaign that peaked way too early. In the best-case scenario, the search engine would have gone live with limited use and worked the kinks out before anyone noticed it. After all, that's what Google did. To be fair, Cuil didn't necessarily seed this campaign, other than to put up a placeholder web page. It was both the beneficiary and victim of the tech-blogging beast that's constantly on the hunt for scoops.

What we can learn

1. Timing is everything when it comes to viral campaigns.

2. Under-promise and over-deliver -- not the other way around.

3. Red with mortification

In April, Hollywood celebrities and international media packed the premiere party for "Scarlet," a new TV thriller series starring the Natassia Malthe, an exotic actress who'd played a few bit roles. Hollywood producer David Nutter lent credibility to the project, while Malthe began to make the scene at high-profile events like the Oscars.

An integrated marketing campaign reputed to cost $100 million was a group effort between Agency.com (New York and London), Tequila\London, Stream and Premier PR. Broadcast ads sent viewers to Scarlet.tv (no longer an active site), where they could see more commercials and trailers for the show. The PR folk planted rumors linking Malthe romantically to major stars.

So, excitement was high at the premiere, as partiers waited to see the opening episode. Instead, what they saw was a commercial for Scarlet, the world's slimmest LCD TV. While LG, Scarlet's manufacturer, said audience reaction was positive, on the internet, TV fanboys howled with rage.

But some advertising insiders loved it. "I absolutely fell for it. The concept of a TV series really being a series of TVs was incredibly creative," says integrated marketing consultant Amanda Vega. Where LG dropped the ball, she adds, is in not interacting with fans after the reveal. For example, the company could have asked fans whether it should sponsor a series and, if so, what should it be like. She thinks negative press about a campaign is harder on the agency than the advertiser.

What we can learn

Use every opportunity to gather feedback that will help with product development and future marketing.

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Comments

Mary Fletcher Jones
Mary Fletcher Jones January 8, 2009 at 6:27 PM

Excellent article! Great research.