Monthly Archives: October 2012
The concept of ‘Print to Palm’
The intent of promotional print has changed with the evolution of mobile. The new role of print is as a ‘call to action’ that leads mobile consumers directly to digital interaction. Not only that, the mobile experience delivered from print should specifically augment what is offered on paper. Just slapping a QR code in the corner of a print ad and linking it to generic content is not enough. The new idea is to deliver consumers instantly from ‘Print to Palm’ by seamlessly connecting the entire experience as one. The message that is translated on print should automatically extend to the mobile device where there is a clear objective waiting.
ROI and Behavior Metrics
Up until the emergence of mobile, it was very difficult to track ROI from a print advertising campaign. ‘Print to Palm’ advertisers have become familiar with the power of mobile in measuring both ROI and consumer behavior. By connecting the mobile web to print, tracking traffic and transactions is easy and gives marketers much more data to measure the effectiveness of print. Compelling print campaigns are now measuring consumer behavior performance with mobile engagement metrics and has become an important ingredient to advertising success.
CRM Data Collector
Print media with gateways to mobile engagement is becoming a powerful vehicle for capturing data from consumers on the go. Attaching a mobile signup form for coupons and offers often gives mobile consumers an instant reason to provide information in exchange for a deal. Collecting digital data from mobile consumers directly from print is an exciting new concept for advertisers. The structuring of future print campaigns can become more and more effective with targeted consumer data.
Mobile Commerce Initiator
Print advertising is now a gateway to make mobile purchases. Offering mobile consumers a way to make purchases directly from their mobile device that was triggered by a piece of print advertising is a completely new way to promote commerce transactions. Mobile commerce is a buzz term these days, but often overlooked is the role that print advertising can play in initiating the buying process.
Mobile and social are already a great match, paving the way for new kinds of consumer interaction. So the idea of collecting new followers directly from print advertising using the mobile device seems natural. Print advertising is ripe for a new role as a social lubricant that encourages audiences to follow along on popular social networks. Now we can directly attribute new social followers to a specific print ad. Connecting print with the mobile social web is something that savvy brands are already embracing.
Ubiquitous mobile connectivity is bringing many changes to traditional print advertising media. There are new ways to do old things. Successful print is already benefiting greatly from the mobile web, but the potential for even greater success is undoubtedly promising.
It is now the job of professional marketers to seize this unique “deeper engagement opportunity” from print and create innovative new ways to connect digital mobile content with their print advertising. A print experience that provides exponentially more value to mobile consumers will be driving model for all future print applications.
So, the next time you hear “print is dead”, remember that this statement only refers to print of the past.
Relevance – Yellow Pages ads reach and influence customers!
Yellow Pages are the most powerful medium for reaching active shoppers: One out of five individuals in an active shopping mode use the Yellow Pages (print or online) for information – more, on average, than any other advertising medium.
Yellow Pages are the most efficient and effective medium for reaching people ready-to-buy: Almost all users of the Yellow Pages (86% for both print and IYP) will make a purchase. No other medium is this targeted and no other medium can boast this high of a follow-through.
Yellow Pages ads help shoppers make purchase decisions: The majority (58%) of Yellow Pages users are actively shopping (have not already chosen a business). Even those that open up a directory with a single name in mind get curious and look at other ads – 55% of these users view other ads, and they look at 4 ads on average. In net, close to three quarters of users of Yellow Pages end up being shoppers and view multiple ads when they go to a heading.
Permission-based, Full-engagement, Highly Effective:
Users are fully engaged. Users pay attention to ads 100% of the time because users actively seek out the information when they have an immediate shopping need.
Yellow Pages ads are continuously available and reach people whenever (and wherever) they need information, at a point of time when the consumer is in a decision-making modeYellow Pages are frequently an advertiser’s last chance (and, in many cases, only chance) to affect a customer’s decision.
Brings in Great Customers
The majority of customers (53%) received through the Yellow Pages are new customers to a business.
Yellow Pages users ( both print and online) spend 25% more than average customers for most of the top headings. The average amount spent by Yellow Pages users of the top 210 headings in 2010 was $437.
Roughly one out of ten Yellow Pages references are for business purposes.
Because Yellow Pages ads do a great job of “pre-qualifying” customers, businesses have a strong chance of converting Yellow Pages users that contact them to paying customers. On average, while they consider 4.6 ads, users will only contact 2.0 businesses before making their final purchase decision. That translates to about a 50% “conversion” rate for every “call” or “lead” from the medium.
Yellow Pages users tend to have major events occurring in their lives that drive the need for new types of purchases.
Good for an Advertiser’s Business
Yellow Pages ads deliver prospects
The average top heading local display ad delivers over 150 calls per year at a cost per call (at 50% rate) of $25.
The average national display ad delivers over 235 calls per year at a cost per call of $28. National display ads receive more calls because national businesses generally list multiple locations in their ads, and each location draws significant numbers of calls.
The average space ad delivers over 80 calls at a cost per call of $10.
The average National Trademark ad delivers roughly 90 calls per year at a cost per call of $9. Trademark ads benefit similarly from multiple locations.
The average companion directory display ad delivers over 70 calls per year at a cost per call of $9.
The average Internet Yellow Pages ad delivers over 90 calls per year at a cost per call of $19.
Great for the Advertiser’s Bottom Line
Yellow Pages ads pay for themselves many times over.
The typical local display ad delivers $10 of sales and $3.5 of profit for every $1 spent on Yellow Pages. The values for national display, space, and national trademark ads are even higher.
Hi. My name is Andrew Shotland and I am a print yellow pages user. I know, I am one of those cutting edge online guys who makes his living off the “yellowpages are dead” thing. But, then, a main water pipe to the house started to leak and flooded my lawn.
I ran to the computer and started to search – Ahhh Los Links!
My wife gave me the hairy eyeball. Did I mention it was Mothers Day? I dug out the book and called the plumber with the two-page four-color spread. Crisis averted.
Last week I was reading about the War on Yellow Pages and I realized that many of us online types have been at war with the book because we have a vested interest in the book dying. There are plenty of good reasons to be down on print Yellow Pages as a marketing vehicle and I won’t repeat them here.
But today, because the Yellow Pages saved my ass, and possibly my marriage, I thought I’d return the favor and sing their praises.
75% of YP advertisers are service businesses or installed product (think floor covering) businesses. The more service-heavy, the more valuable the directory.
Businesses that have large, infrequent sales (roofer, divorce attorney, windshield repair) are very likely to receive a big return compared to a donut shop. A roofing customer is out of the market for 20 years after a purchase. That’s a lead worth capturing.
When the customer’s location is the work site, local SEO is exceptionally difficult to optimize and a directory can assist in exposing a business to their desired service area. About 35% of YP advertisers are home-based businesses that need visibility. The print directory can act as one of their store fronts.
Categories that are dominated online by national brands and deep pocketed lead generation companies are also big beneficiaries of local directories. Examples are insurance (your local agent can’t outspend GEICO online), pharmacy, finance, real estate and educational institutions.
But print YP ads aren’t for everybody. Gas stations generally aren’t good YP advertisers because the decision to purchase is habitual, opportunistic, and more driven by price than research.
Another rule of thumb is research. The more a decision is researched, the better the ad return is.
Trust is also a major factor. If trust is necessary, (typically a requirement for a large purchase) the more valuable the ad. While advertising is not always a guarantee of trust, oftentimes online it’s harder to gauge trust when comparing a set of free listings or gamed review sites. A licensed, bonded, certified member of the local chamber of commerce with 30 years experience can look pretty similar online to a guy who knows a little SEO and will work for Gagaville credits.
Print directories are made for emergency services. When my buddy Dick Larkin’s 2 pound new Maltese puppy got into the ant poison and was having convulsions, his wife did not research online for emergency vets. She looked at the book in her drawer, made a quick decision, and drove.
If a tree is about to fall through a house, the home owner won’t bother with a lead generation site that requires personal information and I doubt he’ll have a friend who’s the mayor of the local tree guy. And let’s never forget the Great Pleasanton Mothers Day Flood of 2011 (moment of silence please).
The good news proving that Yellow Pages continue to deliver strong value to advertisers, in the form of research data, just keeps rolling in.
A new study just released by Dr. Dennis Fromholzer of CRM Associates in Boulder, CO, drives that point home to every thoughtful and open-minded advertiser.
In earlier studies, Dr. Fromholzer has demonstrated several truths about the Yellow Pages as a stand-alone product: tremendous ROI; low cost of customer acquisition; increasing print references; leading call-to-sale conversion rates; and usage by those who have the most money to spend on advertiser goods and services.
Most Yellow Pages realists already know that call tracking studies for individual ads confirm the ROI for print is exceptional.
$14 to $1 for local display; $34 to $1 for local space (in-column); $56 to $1 for national trademarks.
In his new study, Dr. Fromholzer deepens his analysis by making value comparisons among the Yellow Pages, search, and other local media.
The results are rather staggering in favor of the good ol’ Yellow pages!
The Fromholzer research data, for example, estimates the median costs per customer influenced based on the top 210 Yellow Pages headings for each medium.
The data shows Internet Yellow Pages ranks first with a customer acquisition cost of just $11. Print Yellow Pages ranks third out of the 12 media analyzed at $27.
Compared to other commonly used media: magazines, $43; prospective direct mail, $51; paid search, $53; newspapers, $64; TV, $81; and online display, $138.
It also estimates the relative sales ROI for all ad-types by local medium. Again, the Yellow Pages are dominant, earning the top two rankings among the 13 media reported.
IYP returns $60; and print Yellow Pages, $60.
Compared to other commonly used media: magazines, $30; direct mail and paid search, $20; social networking, $9; and mobile display $8.
Two statements included I Dr. Fromholzer’s study stand out.
“The conversion rate for leads from Yellow Pages is an order of magnitude higher than the conversion rate for most other direct marketing media. No one uses the Yellow Pages unless they are interested in making a purchase. This tight focus on ready-to-buy buyers results in high sales ROI for businesses.”
He concludes with this forward-looking advice.
“A smart program uses a mix of media alternatives to insure that the advertiser’s message is available which ever place a consumer goes for information. Knowing the relative ales ROI values across media helps businesses insure that every dollar they spend goes toward increasing sales revenue. If the advertising doesn’t bring in paying, profitable customers, then the advertising is worthless.”
By that standard, it is undeniable that Yellow Pages, especially print Yellow Pages, must be a major part of every business’ marketing mix.
The following article, as you will read, was written to assist advertisers in planning their advertising to achieve better results. ADP is posting the article, which lists several strong “Pros” for the Yellow Pages, in the belief that the better Yellow Pages salespeople understand the thoughts driving advertiser decisions, the more effective they will be in demonstrating the effectiveness of the Yellow Pages, both as a stand-alone medium or as part of an effective media mix.
-ADP President Larry Angove
Using Advertising Media More Effectively:
What advertising media should you use to promote your business? Simple. Use the one that is most influential and believable, and that comprehensively reaches the highest percentage of your target audience for the lowest cost.
Is that easy? No.
There are many advertising media options for reaching your target audience. This chapter covers the relative strengths and weaknesses of different types of advertising media, and specifically explains how to choose the most effective printed advertising media.
This is a long chapter with a lot of important content. The information will help you to plan your advertising and to get better results, even if you are only choosing what local paper to run your ad in.
Pick An Advertising Media Category
The first decision to make is what category or combination of categories of advertising media to use [newspaper, magazine, radio, direct mail, television, telemarketing, direct sales, yellow pages, outdoor, etc.]
Note that we did not say that the first decision was what the company could afford. It is a fundamental mistake to buy any advertising media that you can’t afford to use effectively, or that will not generate the volume of sales you need to stay in business.
Many companies decide what advertising media to use too fast, and they base the decision on too little information. Don’t make assumptions about what you should do until you get some information. And you absolutely do not want to make media decisions based on what media sales rep knocks on your door.
A clearly defined set of goals for your advertising campaign will help you to choose the best advertising media available. Know what you want your advertising to do, so that you can measure the results and make decisions accordingly.
A realistic budget should indicate which advertising media could be effectively used for your campaign. And understanding the relative strengths and weaknesses between the different advertising media will help you to deliver the right message to the right person at the right time.
Advertising Media Strengths & Weaknesses
Very broadly, different advertising media are better at doing different things. Depending on your type of business and your target audience, one advertising media will be better than another for effectively conveying your message.
For example, photo reproduction quality may be critical to your products. Or information content might be critical. Having a personal conversation may be important. Offering a coupon or a sale price may be the key to success. Timing may be critical. Receiving information from an expected and credible source is hugely important.
Newspapers As An Advertising Media
- Newspapers get 21.5% of all U.S. advertising expenditures.
- Newspaper ads rank highest for believability for all media.
- High local coverage and immediate [daily] delivery of your message.
- Excellent mass media [almost everybody reads the newspaper].
- An interactive medium [people hold it, save it, write on it, cut coupons, etc.].
- Flexibility in production: low cost, fast turnaround, ad shapes, size, excellent quality for inserts.
- Special targeted sections and shopping guides.
- Extraordinarily high Sunday readership.
- Very busy/cluttered competitive environment [must compete against other ads and the newspaper copy].
- Little control over ad placement.
- Low production quality.
- Hard to target your specific audience.
- Short life span [24 hours].
Radio As An Advertising Media
- Radio gets 8% of all U.S. advertising expenditures.
- Immediate delivery of message and high frequency of message [you can repeat several times per day].
- Local audience. Selectivity by format. High availability.
- Low cost per thousand [CPM] exposures.
- Low cost production.
- Reach an exclusive and captive [mobile] audience.
- Limited to audio message.
- High channel switching.
- Your message expires immediately [no shelf life].
- High advertising clutter.
Television As An Advertising Media
- Broadcast and cable television combined get 23.4% of all U.S. advertising expenditures.
- Immediate delivery of message and high frequency of message [you can repeat several times per day].
- Very high impact – TV is the best for stimulating the senses.
- High mass audience coverage, high prestige.
- Low cost per thousand [CPM] exposures.
- Local regional emphasis, cable audience availability, some audience selectivity.
- Very high costs of production and airtime.
- Limited audience selectivity.
- Your message expires immediately [no shelf life].
- High advertising clutter.
- High channel switching.
Direct Mail As An Advertising Media
- Direct mail gets 19.2% of all U.S. advertising expenditures.
- Highest response rate of all media.
- Highest level of selectivity of all media.
- High quality control.
- A measurable media for cost and response. Easy to test.
- High personalization.
- Creative flexibility.
- Long life span.
- No advertising clutter [once they open your piece].
- Highest cost per exposure.
- Over-saturation of market – people get a lot of mail.
- Negative connotations about buying through the mail.
- Negative connotations about “junk mail”.
Magazines As An Advertising Media
- Magazines get 5.3% of all U.S. advertising expenditures.
- Excellent photo reproduction in full color.
- Long shelf life with high pass-along readership.
- High readership rates and reader loyalty.
- High ability to select audience.
- Regional editions for a more local audience.
- Proven selling power. High prestige.
- Long lead times. Unable to deliver your message immediately.
- High CPM for mass audience advertising.
- Heavy advertising clutter – often half of a magazine is advertising.
- Poor local coverage.
- Can’t deliver your message with a high frequency.
Outdoor As An Advertising Media
- Outdoor get less than 1% of U.S. advertising expenditures.
- Highest reach of all media.
- Lowest CPM of all media.
- Neighborhood level selectivity.
- Very high frequency of reach.
- Potential high impact because of size.
- Some good location of message availability.
- Only very short, simple messages work.
- Some image problems with poor locations.
- Hard to measure results.
- High initial costs.
- Negative connotations about visual pollution.
Yellow Pages As An Advertising Media
- Yellow Pages get 5.9% of all U.S. advertising expenditures.
- Very high percentage of new buyers [over 50%].
- Very high percentage of active buyers [over 88%].
- Completes the marketing process by bringing customers in.
- Second highest media for believability.
- Reaches 76% of U.S. adults in the average month. [Available in almost every home and business.]
- Longest shelf life. Open 24 hours per day.
- A measurable media for cost and response. Easy to test.
- Highest advertising clutter [100% ads].
- High cost for competitive positioning.
- High CPM [but highest active buyers].
- More directories mean lower reach per directory.
- More headings mean lower reach per heading.
- You can only change your ad once per year.
Using Advertising Media In Combination
Large advertisers almost always use a combination of different media to promote their products. This strategy makes sense for a number of reasons, but mainly because it is cost effective. So, is this a good idea for a small, local business?
The answer is a resounding YES, but on a slightly different scale. You certainly want to maximize your marketing through coordination.
Let’s take a look at how your advertising reach is increased when you use different media in combination.
Consider the percentage of people in your total target audience that you reach when you advertise in the newspaper. Here is a good example of what is going on in the real world:
With a newspaper ad you reach 25% of your total target group. Add a yellow page ad, and you reach an additional 18% of the people. Add a direct mail piece, and you reach an additional 19% of the people. Add television advertising, and you reach an additional 15% of the people. Add radio, and you reach an additional 8% of the people.
By using multiple media outlets you have reached more of your target audience with your marketing and advertising. You have also reached them multiple times because they get messages from different places.
Your messages reinforce each other. The result is an overall higher response at a lower cost. You have created synergy with your marketing and advertising.
It works because different people pay more attention to [and have more faith in] different types of media. When seriously reviewing ads for a product, about 25% of people review and trust the newspaper. 18% consider direct mail, 21% the yellow pages, 8% television, 4% radio, and 4% magazines.
Choose Your Best Media
Each kind of media has advantages and disadvantages. How can you figure out what to do? Understand what kinds of media are available to you. Understand what they cost and whom they reach. Understand where your customers are looking for information. Test different ads and media, and measure the results. [And keep testing over time]. Your work will be richly rewarded.
Don’t forget that the media you select has a great influence on your advertising effectiveness and believability. What is the difference between an ad in the newspaper and a flyer on your car? Effectiveness and believability. What is the difference between a column listing and a display ad in the yellow pages? The difference is effectiveness and believability. What is the difference between the smallest ad, and the biggest, most professional ad? A whole lot of customers.
7 Key Activities For Getting Innovation Right
By Seth Kahan
September 17, 2012
These days innovation is everything–and yet it’s nothing if it doesn’t succeed in the marketplace. Sure, innovation is about generating great ideas. But a great idea alone is not enough. It must have the legs to get over the obstacles that innovations inevitably confront.
The real trick is building something people are compelled to acquire, getting it into their hands in a form they can put to use, and generating the cash flow needed to grow. Getting innovation right means not just creating something new—it requires successful delivery of that new product or service.
Experience working on hundreds of projects in some 60 organizations has taught me that seven key activities will lead to successful innovation. Putting any one of these into practice will put you ahead of the competition. Bring them all to bear and you will systematically uncover potential, capitalize on opportunity, and generate traction that drives success in the marketplace.
1. Discover Inflection Points
A positive inflection point is a game changer that has the power to propel you forward. Expert innovators are able to sense the potential in inflection points before they take place, and then ride these dramatic shifts toward four strategic targets: growing your base, increasing the offerings your customers buy, generating loyalty, and moving you up-market.
2. Build Capacity
Systematic innovation relies on the ability to contain and the three inherent stresses of a successful innovation environment. Strong innovation leaders recognize this and intentionally cultivate the people and the environment that provide a strong foundation. The three stresses are:
A. Pressures of everyday operations – just keeping the doors open brings its own special set of challenges that include everything from suppliers dropping the ball to irate customers to unplanned successes that require your attention.
B. Movement and stress that comes with new ideas, products and services – although necessary for sustainable growth and profit, innovation is by definition not business-as-usual. When it courses through your organization it demands attention and creates counter-forces that can wreak havoc if you are not ready for it.
C. Market forces: sometimes rapid, always unpredictable – every business owner knows the market can shift on a dime or a headline. Positive inflection points are sometimes generated in response to these changes in market conditions. For innovation to thrive, you must have the capacity to provide both the stability required to weather change as well as the flexibility to jump at sudden advantage.
3. Gather Business Intelligence
The best innovation rises from a sea of information about products, services, customers, competitors, market conditions and internal capabilities. Business intelligence is the data that supports your ability to make strategic decisions. It could be information about products, customers, competitors, the market or internal capabilities—or all of the above. Effective innovation requires intelligence to make smart choices that take into account each of these areas.
I have been conducting business intelligence for my executive clients since 2000. I find it surprising that so many have little or no intelligence efforts in-house, let alone the ability to exploit this resource. It’s a stark absence. They cannot act on their information because they have none or what they have is haphazard, built upon conversation and hunches only. It is a sad state considering that much of this valuable input is readily available for a negligible cost.
4. Shift Perspective
In order to see new opportunity you must be able to get out of your own box. Successful innovators question their own assumptions and try on alternative and helpful points of view.
Shifting perspective is essential if you are going to get innovation right. Your current assumptions are constraining your thinking, whether you’re aware of that fact or not. In this chapter I will show you how to challenge those assumptions by applying four techniques for shifting perspective that should put you in a new relationship to everything you thought you knew. From this new perspective, you’ll find it easier to get innovation right.
Your clients, competitors, strategic partners, and industry observers each have a sense of the value your organization provides. But is it the same value proposition you and your marketing team have worked so hard to create and articulate? Maybe not!
5. Exploit Disruption
Successful leaders learn to identify the opportunity embedded in adverse conditions. It can come from anywhere. If ignored or mismanaged, it throws business into disarray. But what if you could take the forces behind these intrusions and turn them to your advantage? That’s what the masters do. Instead of being waylaid by adverse conditions, they use them to get the upper hand. You can and you must become an expert in exploiting disruptions. Don’t fight change but use it to your advantage.
Market fluctuations are normal, including fast, painful declines and long, confusing morasses. Rapid fluctuations are particularly disruptive. The market plunges, a sexy new competitor moves into your space, technology changes too fast to keep pace, customer expectations slam you. We’ve all been there. Welcome to life in the 21st Century. Learn how to put disruption on your side.
6. Generate Value
Value is what causes people to reach in their pockets and spend. Skillful innovators understand what drives value and how to generate it. Value is at the center of everything. With it, you can hobble along in other areas and still score a goal. Without it, you are doomed to eventual failure regardless of your other accomplishments.
Value has been at the basis of commerce since the beginning when we first went beyond producing goods for our own use and began to use them for trade. Value is what we want, what compels us to pay or barter. Value is what drives all the activity tallied daily in the world’s markets. Value is the holy grail of business – you must keep your eye on it 24/7.
7. Drive Uptake
Every stage of the innovation process holds opportunity to engage the community of people who will be most interested in your offerings. Innovation leaders intentionally drive this uptake, or market acceptance, for maximum effect. There is nothing more gratifying or necessary than seeing your offerings purchased and put to use. Uptake is customer acceptance of a new product or service. Without it innovation is an empty shell, a wasted effort. With it, new ideas come into their own as they are taken up and applied by the people who most desire them – your customers.
Innovation is the successful introduction of a market offering that profits everybody involved, both you and your customers. Innovation happens when a new product or service creates a return in the market that far exceeds the time and money it takes to develop and execute. When a new offering is accepted and embraced, generating the resources that make it possible to support and grow its place in the market – that is innovation.
Seth Kahan is a change specialist who has consulted with CEOs and senior managers at over 60 organizations including World Bank, Shell, Peace Corps, and 30+ associations. This is an excerpt from Seth Kahan’s forthcoming book, Getting Innovation Right: How Leaders Create Inflection Points that Drive Success in the Marketplace to be published by Jossey-Bass in early 2013.