Branding 2.0

B2B Advertising Shift

B2B trade advertising doesn’t get much press these days because it’s not sexy.  But it does account for 10%, or $25 billion, of the total U.S. advertising expenditure.

For small to mid-size B2B’s there is now a new alternative for spending that $25 billion: the fast growing Internet-based marketing-video category.

Because the cost of decent equipment, for producing your own video ads, has dropped below $200, it is now within the reach of every business’ budget.

Companies are getting more comfortable with the ease and process of producing and starring in their own commercials  They likewise are getting more comfortable with not forking over the big bucks for a full page, 4-color ad in a leading trade publication.

Many marketers now believe the new communications model, in the B2B category, is a small space print ad that drives traffic to a Web site where users can view a 2-3 minute video clip.  It makes eminent amount of sense because it’s so much more efficient than the old media model.

As this shift continues, some media experts forecast that many industry-specific trade publications will lose up to 75% of their ad revenue over the next 5 years — pushing many into bankruptcy.

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Opt-In Advertising

Facebook realizes the consumer data they collect on their 300 million users is extremely valuable — and plan to use it to monetize their site.

While Facebook promises not to sell your data to others, they are planning to use it to sell targeted ads to advertisers.

There’s the rub.  They probably do own your data legally, but people do not like receiving ads in general, and according to the recent Annenberg-Berkeley Report, 70% of Internet users really don’t like the scheme of using their personal data against them.

Because brands are now controlled by consumers, Facebook, and other social networks, better listen carefully.  They should also try to visualize the facial expressions of their users.  Their faces say it all — no, no, no.

The days of marketers freely advertising, when and where they want to, are over.  Consumers someday will probably create a list of advertisers they will welcome into their space.  It’s the concept of opt-in ads.  It’s not here yet, but it’s on its way.  Social networks should initiate these new rules, in conjunction with their users now, or they may have a rebellion on their hands.

P.S. Facebook should know this first hand.  A while back they tried to change their privacy policy on the sly, they got caught, and had to retreat.  Hopefully they won’t make the same mistake twice.

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How Social Media Affects the Purchase Decision

Many people still wonder, and rightly so, how social media gets the cash register to ring.

As reported in the October 6, 2009 Adweek article written by Brian Morrissey, WPP’s research group has evidence that engagement with a brand’s social media helps lead towards a purchase decision.

This new study has part of the answer and it is very positive for using social media to build brands.

According to the results of the study, people who bumped into brands through Twitter, Facebook, YouTube, etc., are 2.8 times more likely to search for a brand with click rates increasing by 50%.

This is great news for managers and provides cover for them when they shift money out of old media into social media.

However, it does raise the question, why do people have to search for a brand’s Web site address?  It seems silly that someone has to search for it.  On the other hand, maybe companies are being savvy by not appearing to want to give a sales pitch.  People may perceive a www cue similar to an 800# — inferring, give me a call, I want to sell you something.

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Green Branding Not Turning into Green

According to a report by Grail Research, “green campaigns” may not be paying for themselves.  While consumers are very interested in the ”green movement,” it doesn’t always pay off at the cash register.

While 85% of shoppers have bought a green product, only 8% said it made up a majority of their purchasing mix.

Also, green purchases vary widely by category.  For example:

The research also shows that while a lot of companies have aggressive “green programs” the awareness of such is not always well attached to the brand.  For example, few people were aware that Esté Lauder, HP, Unilever, Intel, Cisco and Rubbermaid all had active green programs.

It may appear that many companies are not doing a good job of communicating their commitment to the environment.  But there also may be other things at work that are affecting these perceptions, like price.  In the green field people often say one thing and do another, particularly when they don’t want to pay a higher price.  Or maybe, green is okay when cleaning your kitchen floor, but not when buying a black dress that fits and makes you look thin.

On the other hand, I believe that “green” is now considered so normal that it has become a parity attribute in the purchase decision matrix.  And if so, it’s no longer the great brand differentiator it once was.

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Brand Perception

People who buy luxury goods generally know they are paying a big premium for the brand name.

Recent research by Gucci of Paris indicates that Europeans and Americans are now becoming less enthusiastic about brands who conspicuously emphasize their logos and brand names.

To survive in this new environment, as customers’ tastes change, brands must also change.  It doesn’t mean that luxury brands won’t be able to still charge a premium, but it probably won’t be as much.

Whether it’s the economy, or people are tiring of showing off, or the rip-offs are showing up on too many people of questionable incomes, the stage is being set for more recognized tangible vs. perceived value.  High-end brands that don’t actually deliver relevant, tangible value will cease to exist as luxury goods and will be forced to compete on price.

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