Wunderman’s Morel on Social Media, Online Video and Mobile, Part 2

I recently spoke with Daniel Morel, chairman and CEO of Wunderman, a New York City-based marketing services firm that’s part of Young & Rubicam Brands and a member of WPP. Among other topics, we talked about the difference between social media and social networking, online video, and mobile marketing.

I recently spoke with Daniel Morel, chairman and CEO of Wunderman, a New York City-based marketing services firm that’s part of Young & Rubicam Brands and a member of WPP. Among other topics, we talked about the difference between social media and social networking, online video, and mobile marketing.

Last week I offered part 1 of the highlights of our discussion. The following is part 2.

Melissa Campanelli, eM+C: I know Wunderman has used video extensively in its campaigns. Why is video important?
Daniel Morel: People are more seduced by moving images than fixed images. They’re more interested in entertainment than text. People are inherently lazy — you and me included. We want to be entertained constantly. That’s why television moved from a static experience — simply voice and text — to a medium of moving images. That’s when it became an entertainment medium.

The same thing is happening on the web, thanks to new technology. Moving video — and thus entertainment — is appearing on the web, and when entertainment arrives in a medium, that medium takes off. This is why we’re doing more video on the web. It’s possible. It’s what people like to consume, and it allows for customization. It’s also tested, and we know it works.

My only concern right now is about how many creatives we need to produce if we want to use our data to create customized video. We’ll have to create several versions of the same piece of communication — not just one 30-second spot. So, what kind of production capability will we need?

MC: What about mobile marketing. Do you see that as a growing area?

DM: We spend a lot of time testing mobile marketing. But I still haven’t made a large bet on it yet. Maybe I’m making a mistake, but the reason I haven’t made a serious bet on it is because I follow the desire of my clients, and they’re not asking for it. Sure, I try to push them a bit and have them look at new technologies, but in most cases, I can’t make the economy of mobile work for my clients and me. A large amount of time is spent on working on the mobile platform and technology and making sure messages can be calibrated properly and tabulated.

On a $100,000 mobile marketing project, for example, I could spend $75,000 on technology and only $25,000 on communication. And when I get 10 [percent] to 15 percent of the $25,000, that’s not a lot of money.

We do have several people here working on mobile with clients. Ford is very interested in mobile, as is Microsoft. Our clients Nokia and Burger King are very active in it. But what does that represent in terms of a percentage of our business? It’s not large.

Yes, technology has improved. The chips are getting faster, the messages can now be in color and customized for each platform, and mobile operators are becoming more receptive to the needs of marketers.

So, the channel has become more marketing-friendly and more interesting to me. But, the technology has to mature even more, and the people in charge of the pipe have to recognize the value of marketing more before I make any real bets on it.

MC: Where do you see advertising or marketing being in the next five to 10 years?
DM: You’ll see exactly the same thing you’re seeing today: The existing channels will continue to coexist with whatever new channel or new use of an existing channel comes around.

Books have been around since the 16th century and still haven’t been replaced. The television advertising market is also very robust even after 15 years of internet communication. So, we have yet to see an example of a new medium totally eradicating what was done before.

Customers in the end will decide how they want to consume information. Consumers like to have choices. They want to watch the Oscars on large screens, product demos on their laptops and stock quotes from their portfolios on their mobile phones. They decide which channel is most appropriate. Five years down the road it will be exactly the same.

How Moms Shop Online

In honor of Mother’s Day on Sunday, I thought I’d take a look at what moms are doing online today.

To do this, I turned to Digital Mom, a two-part report published earlier this year by Razorfish  and CafeMom.

In honor of Mother’s Day on Sunday, I thought I’d take a look at what moms are doing online today.

To do this, I turned to Digital Mom, a two-part report published earlier this year by Razorfish and CafeMom.

Razorfish surveyed 1,500 digital moms — or moms who used at least two Web 2.0 technologies and actively researched or purchased online in the three months before the survey was conducted in October 2008.

Razorfish and CafeMom’s goal was to learn more about the digital mom. How does she use digital technology? Do her habits differ by age? What are her motivations for engaging in social media and other emerging channels? How should marketers engage her?

The report was chock-full of interesting and surprising information.

One key finding from the report is that more digital moms today interact with social networks (65 percent) and SMS (56 percent) than with news sites (51 percent). And just as many can be found gaming online or via a gaming console (52 percent).

Which technologies digital moms use, however, depends on factors such as the mom’s age, the age of her children and motivation.

Moms less than 35, for example, are more likely to use newer communication platforms like social networks, SMS and mobile browsing. Moms 45 and older are more likely to use online news, consumer reviews and podcasting.

What’s more, online video consumption is highest among moms with children 12 and older — the group that’s also more likely to be online monitoring their children.

Online purchasing habits
Compared to nondigital media such as magazines, newspaper and radio, digital channels continue to influence digital moms in their purchasing decisions, according to the survey.

Answers to questions for digital moms who researched or purchased products online in the three months prior to being surveyed revealed the following information:

• the gap between TV and digital channels in creating initial awareness of a product is closing;
• Web sites, search engines and friends/family, along with social influence channels and magazines, are more used and trusted for research and learning than any other sources;
• social activities play an important role in influencing digital moms; and
• emerging channels like mobile and podcasting also influence different stages in the purchase funnel, although it varies by vertical, and penetration is still relatively low.

What does this all mean? If you’re an online marketer targeting moms, understand that this group is pretty Web-savvy. In many cases, digital moms are using some of the newest Web 2.0 technologies to communicate with friends and family and help make purchasing decisions. So go ahead, test a variety of these Web 2.0 tools when marketing products or services to moms. You may be surprised by the results.

The Future of DM: It’s Interactive

Earlier this week, the Direct Marketing Association released a qualitative report on the future of direct marketing, concluding that it will most certainly be interactive.

More on how the report was put together in a moment. Bottom line: Customers will be in control, analytics will rule and digital marketing will increase.

Earlier this week, the Direct Marketing Association released a qualitative report on the future of direct marketing, concluding that it will most certainly be interactive.

More on how the report was put together in a moment. Bottom line: Customers will be in control, analytics will rule and digital marketing will increase.

The DMA asked more than 35 well-respected direct marketing leaders — including copywriting maven and columnist Herschell Gordon Lewis of Lewis Enterprises, Alan Moss of Google, Jeanniey Mullen of Zinio, and Akira Oka of Direct Marketing Japan — their opinions on the future of direct marketing and their industries/segments. The report provides insight into what these leaders think about the short- and long-term future of direct marketing.

Specifically, they were asked the following questions:
* Where do you think direct marketing will be in five years? Ten years?
* How should direct marketers prepare for these changes?
* How will your industry/segment change during this time?
* How is the state of our nation’s economy impacting your industry/segment?
* How do you think the election of Barack Obama will affect the direct marketing community?

The report revealed the following about the future of direct marketing in the next five to 10 years:

Customers will be in control. Technology has given consumers myriad choices, options and resources that let them find what they want and skip over what they don’t. Technology also will continue to advance, opening up great opportunities for both consumers and marketers.

Measurable and accountable marketing will increase. The health of the economy has made marketers think and rethink about where to put each dollar of their marketing budgets, according to the report. As a result, allocations will move away from traditional channels such as catalog and direct mail into digital channels, which are intrinsically more measurable.

Traditional DM will decrease; digital marketing will increase. Environmental pressures, postal rate hikes and the potential for a do-not-mail bill will result in a decrease in both direct mail and catalog volume. Digital has many advantages over traditional DM, such as its ability to track real-time measurements; create more targeted, relevant and personalized messages; and reach new generations of consumers who were born with a mouse in hand.

Many channels, one message. It’s not all bad news for direct mail and catalogs, though. Integration always has been a key component to direct marketing and will only increase in importance as the number of viable channels increases, the report says. There also will be a movement from single channel campaigns to more integrated, multichannel strategies. These campaigns have the same message across multiple channels, allowing marketers to reach more customers, who have more opportunities to respond via the channel of their choice.

While the death of direct mail will not come in 2009 — or any time in the near future — interactive marketing clearly is growing in importance. If you’re not participating in any interactive marketing programs now, it’s time you start. Your future depends on it.

Is Cuil Cool?

Perhaps the biggest announcement in the interactive space this week was from Cuil (pronounced COOL), a technology company that unveiled its search offering, also called Cuil. An old Irish word for knowledge, Cuil was developed by a team with extensive history in search.

Perhaps the biggest announcement in the interactive space this week was from Cuil (pronounced COOL), a technology company that unveiled its search offering, also called Cuil. An old Irish word for knowledge, Cuil was developed by a team with extensive history in search.

According to its press release, the company is led by husband-and-wife team Tom Costello and Anna Patterson. Costello developed search engines at Stanford University and IBM; Patterson got her training at Google where she was the architect of the company’s search index and led a Web page ranking team.

They refused to accept the limitations of current search technology and dedicated themselves to building a more comprehensive search engine. Together with Russell Power, Anna’s former Google colleague, they founded Cuil to let users “explore the Internet more fully and discover its true potential,” according to a company statement.

Cuil reportedly combines the biggest Web index — 120 billion Web pages — with content-based relevance methods, results organized by ideas, and complete user privacy. This is supposed to give users a richer display of results. It offers organizing features, such as tabs to clarify subjects, images to identify topics and search refining suggestions to help guide users to the results they seek.

The conversation about the search engine reached fever pitch in the blogosphere this week, with some experts saying Cuil should be taken seriously, and others saying it is a poor search engine with little relevance and technical issues.

I guess we’ll have to see what the future holds for the search engine. If Cuil does take off, then marketers may need to rethink their search engine optimization strategies. At present, however, it’s probably best to cool your heels. There are too many issues that will need to be addressed if Cuil is to make any sort of impact on search engine optimization.

A New Approach to Integrated Marketing

I had a great chat the other day with Elana Anderson, the former Forrester Research superstar analyst who has gone out on her own with her (relatively new) company, NxtERA Marketing. The company offers advisory and consulting services to marketing organizations and providers of marketing services and technology.

We were discussing a new study that her company worked on with marketing solutions provider Responsys.

I had a great chat the other day with Elana Anderson, the former Forrester Research superstar analyst who has gone out on her own with her (relatively new) company, NxtERA Marketing. The company offers advisory and consulting services to marketing organizations and providers of marketing services and technology.

We were discussing a new study that her company worked on with marketing solutions provider Responsys.

The main gist of the study–called Marketing Beyond the Status Quo–is that as customer response to broadcast messaging steadily declines and as the percentage of prospects and customers giving permission to market to them decreases, marketers must increase the relevance of their multichannel communications or risk falling short of revenue expectations from the C-suite.

“The data shows – and marketers generally agree – that brands have reached a point where they must invest more time and money in improving the relevance of their communications,” said Anderson.

The report also unveiled the MSQ Model to help marketers determine their relevance maturity and develop a realistic action plan to become a more customer-focused marketer.

The four-point MSQ Model assesses the four fundamental competencies required for marketing relevance: strategic (how customer-focused are your marketing efforts?), analytical (how strategic and actionable is your customer insight?), technical (how well-suited is your infrastructure to support customer-focused marketing?) and process (how collaborative, efficient and error-free is your marketing organization?).

Each competency is weighted and combined to yield an overall Relevance Maturity Score which defines a MSQ Level ranging from 1 (broadcast) to 5 (integrated). Marketers can use the model in conjunction with the MSQ Self-Test to pinpoint their MSQ Level as well as identify the steps they must take in order to successfully move to the next level.

Other key findings and strategies from the study include:
1. Response to one-size-fits-all messaging is declining steadily. The report found that one retailer increased revenues by 500 percent by dividing its e-mail list into four segments and customizing the message to each group. In addition, a comparison of aggregate response data from companies leveraging broadcast tactics versus those using a highly targeted approach showed that the latter delivered significant improvement in open rates, clickthrough rates and clicks per open.

2.Marketers who want to increase marketing relevance must think outside in – from the perspective of the customer. The first step to relevancy requires marketers to clearly define relevancy to include timely response to customer actions, cross channel integration and a programmatic approach, the study found. Marketers must then develop a realistic action plan based on their current relevancy competency as assessed by the MSQ Model and measure and test every step of their program improvements.

3. Without the right technologies, relevant marketing is impossible. Technologies that increase marketing relevance should be made for marketers, and include functionality for automation, collaboration and integration – with little or no IT expertise needed. The report identifies emerging software-as-service options are a boon for marketers looking for lower up-front investment costs, to reduce IT involvement and to decrease time to market.

To receive a full copy of the Marketing Beyond the Status Quo report, visit www.responsys.com/beyond.

Check it out!