Optimarketer: The Marketing Optimization Blog

C-Level Gets Passionate About Marketing

Surprise! C-suiters like CEOs, CFOs, and CSOs are now among the most enthusiastic marketing advocates.

Those endless debates on the need for a respectable marketing programs budget? They’re far less common. And remember the guy who knew half his advertising was wasted, but didn’t know which half? He’s dead and buried.

Today’s marketers (even those in B2B) can actually close the loop between revenues and marketing expenses. They know if they ultimately pull in $20, $10, or $5 for every dollar in marketing spending. Marketing is as much a sales machine as … sales.

Speaking of which, the ancient battle between sales and marketing is finito. Sales can stop complaining about lead quality and marketing can stop complaining about complaints from sales. Marketing automation allows marketers to follow the behavior of prospects over time, score leads, and route them to sales based on a pre-determined definition of sales-worthiness. It’s faster, easier, and cheaper to get started with marketing automation than you may think.

Marketing remains both art and science. Non-marketing executives are discovering that smart marketers make more decisions than ever based on facts – rather than on speculation, opinions, and biases.

Now let’s discuss what executives outside marketing can and should do to help the marketing team fire on all pistons.

DON’T COMMAND – COLLABORATE. In some cases, the biggest barriers to marketing success are internal rather than external. Organizational and cultural hurdles are one reason many businesses never see breakthrough marketing outcomes. Choose collaboration over command and control. Discourage unhealthy competition between functional teams. Keep everyone focused on doing what's right.

MAKE IT SAFE TO EXPERIMENT. The best marketers are the best testers. Testing is to marketing what R&D is to manufacturing. The value of successful tests tends to far exceed the cost of failures. Joe Sugarman, who sold millions of BluBlocker sunglasses said, “I have failed more times than anybody I have ever known.” Encourage your team to dare to be great.

TAKE MEDIOCRITY OFF THE TABLE. Some executives outside marketing pressure the marketing group to run what’s comfortable. Familiar. And perfectly ordinary. A few are even quite adept at locking out innovation. There’s never a good excuse to run undifferentiated advertising in any media. Marketing is, more than anything, a business of ideas. Big, bold ideas. Don’t stand in the way of innovation. Support it.  

THINK ENGAGEMENT. Three words sum up the 20^th century marketing model: Sell, sell, sell. (With a veiled sales pitch disguised as education in some cases.) Now, thanks to social media, marketers have an exciting new way to make new friends. Try putting the pitch aside from time to time, and bring together people with a shared interest or passion. Start fascinating conversations. Bring the power of television into the mix with Web video. Do something extraordinary.

PUT ROI AHEAD OF COST MINIMIZATION. Marketing isn’t simply about keeping costs as low as possible. It’s about maximizing lifetime customer value. Building major revenue streams. And optimizing profits. Many marketing skeptics never budget for innovation and find themselves perpetually disappointed in the results. Avoid self-fulfilling prophecies. Budget to do the job right the first time.

DON’T DO IT ALL YOURSELF. Marketing is more complicated than ever. Those who do everything internally generally do few things very well. Monopolies stifle innovation. Outside teams bring diverse experiences to the table that often prove invaluable. Since they serve multiple clients, it’s often easier for external teams to introduce unconventional ideas and raise everyone's level of play. Get the help you need to do great stuff. Bring in outside experts. Give them what they need to succeed – and make you as successful as possible.

And finally, keep it real. Have fun. Marketing is, after all, the rock ‘n’ roll of business.

What say you?

Saw It With My Own Eyes: Video Was 600% More Responsive

It was one of those Whoa! moments that come out of nowhere. A sales rep was demonstrating an email tool. She decided to show us live data from an advertiser that didn't compete with our clients.

The advertiser, who'll remain anonymous, is a high-end B2B player with an excellent brand. Over several months, they had run a series of HTML email ads, varying the creative approach each time. 

The difference between the strongest and weakest ad, in clickthroughs, was incredible: seven to one. Naturally, we were eager to see the creative treatment used in the highest-pulling ad.

The centerpiece of the email ad was a short video viewers ran when they clicked through to the landing page.

I'm sure you've seen stats on how video impacts marketing results. But I'll bet you haven't run a test of video vs. no video in search or email marketing. Few marketers have. Most haven't even placed video content on YouTube. Or on Facebook. Or on other so-called Web 2.0 sites.

We're out to change all that. Mothers of Invention is offering genuinely interesting Web video at a small fraction of the cost of a typical TV spot -- especially if you agree to do a split-run test of video vs. no video on AdWords or somewhere else, because we want to see businesses get more scientific about this stuff. We are, after all, in the measurable marketing business.

Basically, if you're out to do cool stuff with Web video, and don't want to pay through the nose, we should talk. Email me at robert@themothersofinvention.com to arrange a discussion. Or phone me 978-897-3800 x11 to set it up.

Agency Head Slams Conventional Search Engine Marketing

In a just-released white paper, the founder of a groundbreaking agency says search engine marketing (SEM) professionals often bring a "paint-by-the-numbers" approach to assignments. The award-winning author claims a lack of creative innovation reduces profits. He adds that SEM "silos" inhibit campaign integration.

The indictment isn't confined to the creative side.

According to the author, too many tests reflect little more than "Direct Marketing 101" techniques; practitioners often focus on click quantity over lead quality; and many businesses pay little or no attention to the back end, where the money is usually made in search engine marketing.

As an alternative, he introduces OptiSearch. A break with the status quo, OptiSearch is designed to optimize SEM from end to end.

Confession: I'm the author. Download OptiSearch. (Just click the link to the left to get the PDF.) And please share this post -- and white paper -- with your friends. Thanks.

Marketing Haiti After Anderson Leaves

Two weeks after a magnitude 7.0 earthquake devastated the western hemisphere's poorest nation, Anderson Cooper and other reporters remain in Port-au-Prince. But soon the lights will go off, news crews will depart, and a massive rebuilding effort will need to get done.

Legitimate marketers could play a big role in the reconstruction of Haiti. I know some readers will view this with skepticism, for good reason. Unscrupulous marketers are already profiting from this disaster. But the key word is "legitimate."

A team of legitimate marketers could organize a program to support the rebuilding effort over the long haul, and allow lots of people to donate a fixed monthly amount for years. My guess is hundreds of thousands of Americans would be willing to give $20 a month for five years (or more) to an entirely above-board not-for-profit organization. If 500,000 Americans donate consistently for 60 months, Haiti will receive a $600 million total sum.

The fully-loaded cost per dollar given would need to be ten cents or less -- a challenging ratio, for sure, but not out of the question. Especially if media suppliers, staffers, and advertising creators organize their efforts and fees around what's needed to operate at the required efficiency level.

Speaking of which, the right celebrity endorser -- working without pay -- could lend an air of credibility and produce high response rates at low cost. A board of directors stocked with people of unimpeachable integrity (think Bill Bradley) would help the organization look better...and be better. Major league brainpower would be needed to keep the giving high and expense/revenue ratio low, while making sure the money is actually put to good use.

What do you think of this idea? And more importantly, are you willing and able to step up and make it happen? If so, count me in.

Marketing Teams Should See the Michael Jackson Film

"The show we create here has to have people leaving and not being able to turn it off. They shouldn't be able to go to sleep. They have to see the sun come up and still be talking about it."

Maybe you didn't agree with the lifestyle, but the man's success as an artist was undeniable.

Michael Jackson had the top-selling album of all time. Four of his albums debuted at number one in the U.S. Jackson was the first singer to have four top ten singles from one album, and the only performer to have five number one hits from just one LP.  

If he wasn't the best ever at what he did, he came damn close.

The MJ quote in the New York Times got me thinking about why so many marketing managers keep the bar so incredibly low. It's as if they merely punch through a checklist. The CEO, BOD, and VCs don't seem to care if even a single component of the marketing mix is genuinely great, provided marketing covers the basics and some of the newer stuff.

I wish more clients would tell their agency, "I want to break a record for marketing profitability, and while we're at it, win every award in our category. Just tell me what you need and I'll make sure you get it."

Marketing groups should go on a field trip this week and see This Is It on a big screen. Act as if it's a motivational video.

Now it's your turn. Whadyya think it'll take to get more marketers to aim high?

Direct Marketing Legend Succeeded by Failing ... and Failing

You're looking at one of the most profitable direct response ads -- ever. It was conceived and written by Joe Sugarman, living legend of our Facebook group.

Over the years, Joe sold around 20 million pair of BluBlocker sunglasses. These days he lives a Cribs-like existence in Maui, which my brother Allan tells me is Hawaii's most beautiful island. 

I spoke with Joe earlier this year, and he mentioned something that should be burned into the memory of online and offline marketers everywhere.

The man who wrote, "I have failed more times than anybody I have ever known," talked about extreme, consistent, deliberate failure. Joe said his ads failed around 90% of the time.

Marketing Research 101 professors say not to run a test unless the potential value of testing far exceeds the cost. Direct Marketing 101 professors add that tests should be run in ways that minimize downside risk while maximizing upside potential.

Intelligent direct marketers launch tests to thousands and roll out winners to millions. They alter or dump losers before they cost big bucks. Profits of winners are far higher than tests that crash and burn. Simple.

Testing made Joe Sugarman richer than any of the "gurus" who made money talking about getting rich in marketing. It's a lesson worth repeating next time you propose a test and someone asks, "Aren't you already supposed to know the answer?"

Have a great testing story to share?

If at First You Don't Whup the Direct Response Champ ...

"Beating the control" is the art and science of defeating a reigning direct marketing champion: measurable advertising that's been victorious in projectable split-run tests, or advertising that's never been tested head-to-head but has run at an acceptable profit.

Some "control" approaches have been on top for several years, and they're as tough to knock out as Floyd Mayweather. If you've been in the direct marketing game for a while, you know it's impossible to win 100% of the time (and if anyone tells you otherwise they're either naive or full of shit). Mothers of Invention has beaten the control creative/offer approach more than 50% of the time in online and offline media, and I haven't heard of many legitimate groups doin' much better.

Much has been written about general guidelines for beating the control, but one aspect -- what to do after defeat -- has rarely, if ever, been discussed.

After a loss, great prizefighters pick themselves up off the canvas and get back in the gym. Sadly, many marketing managers aren't worthy of adjectives like "great" and tend to essentially say, "Throw da bum out" after a single defeat -- even if they themselves have managed a string of consecutive losses over the years. No, they don't exactly live by the Golden Rule.

The path to victory is actually not terribly mysterious. The boxer -- with his or her trainer -- runs the fight film. If they notice the winner stayed inside (remained close to the opponent), the new plan may include well-timed straight rights to keep the champ at bay. The direct marketing equivalent of this may be a change in the selling proposition. Boxers look for signs from the opponent's earlier bouts; we often have primary or secondary research to guide us.

Our marketing shop has been involved in dozens of record-breaking direct marketing campaigns. One reason: We kick ass in rematches. 

What tips do you have on beating the control?

"You're Right -- It'll Be a Blown Test. Don't Tell the Client."

One day, while working at an agency I'd rather not name, an account executive showed me a direct mail test grid for a consumer client. I wasn't on that particular team but liked seeing how everyone's tests were structured.

As I studied it my jaw dropped. I quickly asked, "Has it run?" He said nothing had moved forward. I breathed a sigh of relief and filled him in on the fatal flaw.

They were trying three offers, but instead of running a controlled test, they went with this approach:

Offer A: Cross-Section of Lists 1-3

Offer B: Cross-Section of Lists 4-6

Offer C: Cross-Section of Lists 7-9

See the problem? By running each offer test on a different set of lists, there was absolutely no way of knowing if differences in outcomes were due to offers or lists. You could drive a truck through the hole in their scheme.

The account executive didn't seem to care, so I went to the guy in charge of the account. He smiled when I shared my observations and said I forgot one important consideration. When I asked "What's that?" he claimed different collections of lists pretty much perform identically. I asked where he picked that up, and realized he was making it up out of thin air.

We went back and forth for a while, and eventually he conceded it was possible for different sets of lists to perform differently if all other factors stayed the same. This meant we both knew we were looking at the makings of a blown test -- a waste of the client's money that could cause an inferior offer to run ... and run.

Instead of picking up the phone, admitting the problem, and offering to shoot over a new test grid, he said something I would never forget: "We don't have to tell the client."

For this and other reasons, I resigned weeks later.

What do you think drives smart people to "manage" client relationships in such stupid ways?

Bad vs. Good Consultants

Bad consultants focus on short-term agendas. Good consultants effect long-term change.

Bad consultants care about looking good. Good consultants care about being good.

Bad consultants push what's comfortable. Good consultants push what's important.

Bad consultants seek validation. Good consultants seek the truth.

Bad consultants treat people with disdain. Good consultants treat them with respect. 

Bad consultants stand in the way of progress. Good consultants support it.

Bad consultants knock people down to build themselves up. Good consultants build people up.

Bad consultants say whatever suits their self-interest. Good consultants say what they mean.

Bad consultants play games. Good consultants play for keeps.

Bad consultants treat external partners as competitors. Good consultants treat them as collaborators.

Bad consultants minimize their workload. Good consultants maximize their contribution.

Bad consultants set ridiculous goals. Good consultants set realistic goals.

Bad consultants assign blame. Good consultants admit mistakes.

Bad consultants tell you what you want to hear. Good consultants tell you what you need to hear.

Bad consultants care about number one. Good consultants care about the Golden Rule.

Care to add to the list?

 

Obama is #1 Celebrity on Google/Freaking Marketing List

Remember the McCain campaign ad that mocked Obama as "the biggest celebrity in the world?" According to Google, McCain was absolutely right. Check out this exclusive Freaking Marketing tabulation using the world's biggest search engine. (Number of Google results are in parenthesis.)

GOOGLE/FREAKING MARKETING CELEBRITY HOTLIST

25. Ashton Kutcher (7,950,000)

24. Michael Phelps (9,610,000)

23. Oprah Winfrey (9,690,000)

22. Beyonce Knowles (11,300,000)

21. Mel Gibson (13,000,000)

20. Gwen Stefani (13,700,000)

19. Kim Kardashian (17,100,000)

18. Zac Efron (20,100,000)

17. Pamela Anderson (20,800,000)

16. Jennifer Aniston (21,700,000)

15. Sarah Palin (21,800,000)

14. Jennifer Lopez (25,800,000)

13. Tom Cruise (26,000,000)

12. Brad Pitt (28,100,000)

11. Mariah Carey (29,800,000)

10. Kanye West (30,000,000)

9. Jessica Alba (33,200,000)

8. Justin Timberlake (33,900,000)

7. Jonas Brothers (39,500,000)

6. Michael Jackson (40,200,000)

5. Angelina Jolie (43,900,000)

4. Miley Cyrus (50,600,000)

3. Paris Hilton (65,500,000)

2. Britney Spears (84,500,000)

1. Barack Obama (95,400,000)

And to think, in 2003, Barack Obama was a fairly unknown member of the Illinois State Senate.