MarketingSherpa Blog

Marketers have increased response by segmenting online consumers by location, especially with paid search marketing. These strategies often use IP addresses to target online ads to visitors from specific regions or cities.

Now GPS is being added to mobile devices. The coordinates are accurate within a matter of feet, rather than miles. This is opening an opportunity for much sharper location-based advertising.

GPS-based location-driven ads have the potential to be very effective, according to a survey by Marketing Research Services Inc., on behalf of NAVTEQ. NAVTEQ provides digital mapping services to companies including Garmin and BMW.

MRSI sampled 757 users of NAVTEQ ad-enabled GPS devices who were 18 and older with an average household income over $50,000. They found:

o 72% viewed the ads as acceptable to the navigation experience

o At least 50% of respondents recalled seeing an ad for each of the advertised brands (aided and unaided)

o 19% of people who recalled seeing a specific ad clicked through for more information

o Up to 6% visited a business location because of seeing an ad on their navigation device

The release describing the survey lacks some important details, such as what the ads look like, if they included offers and what “up to 6%” really means. However, I do not dispute the validity of the data. I expect that GPS-targeted ads will become very popular and effective in the mobile advertising world.

Twitter’s rapid growth this year has given the micro-blogging service a reputation as a powerful way to reach and research consumers.

I recently interviewed Craig Greenfield, VP, Search and Performance Media, Performics, about his team’s Twitter use. They use it to help promote Performics’ marketing services, as well as enhance their clients’ campaigns and research.

Here’re six ways Greenfield sees Twitter contributing to his team’s success:

#1. Improved natural search

– Content promotion – A simple tweet with a short URL link is enough to drive traffic and capture more links to content, and in turn, help search rankings.

“Depending on who re-tweets our links and how they do it…we tend to see a snowball effect that results in more and more valuable SEO links,” Greenfield says.

– Keyword research – Through Twitter’s search and the team’s proprietary tools, they are able to mine Twitter’s data to look for new keywords related to their client’s products.

#2. Capture paid-search opportunities

Twitter helps Greenfield’s team monitor trends in consumer interest. By tracking non-branded industry keywords (such as ‘jeans’ and ‘shirt’ for clothing retailers) they can see both positive and negative reactions to new brands, styles or features.

#3. Reputation management

Twitter is one of many social media sites that Greenfield and his team uses to monitor consumer sentiment around brands and products.

By using software to identify statements about a company or its products, the team is able to see whether consumers are talking about the company in a positive or negative light and respond appropriately.

#4. Landing page design

Greenfield’s team started mining conversations on social media outlets like Twitter to develop new landing page designs. They monitor conversations related to a brand or product and create a “tag cloud” based on the feedback. The team references these groups of text when brainstorming new ideas for landing pages, he says.

#5. Driving direct sales

Threadless, a tee shirt design and retail company, and one of Greenfield’s clients, has attracted more than 1.2 million followers to its Twitter feed and uses Twitter to generate sales, Greenfield says. Threadless tweets about promotions and content, and typically includes a URL link to their website.

#6. B2B lead generation

Greenfield and his team use their Twitter feed to update followers on:
o Company news
o Blog posts
o New whitepaper downloads
o Monthly webinars

The last two items are often used for lead generation, making Twitter one of several ways the team increases their pool of qualified leads for sales.

The folks at PETCO  tested an email registration overlay ad that helped lift subscriptions more than 400%.

Carol Ott, Director, Finance Reporting and Web Analytics, PETCO, and the team used Amadesa’s Customer Experience Suite to A/B test the ad (and other offers) on the homepage since June.

As you can see in the image below (click for a larger one), the overlay offers visitors two rewards for submitting email addresses:
1. Chance to win a $500 gift card
2. A free shipping offer

“We were impressed with the results. We were testing offers that we thought would drop our average order value and were pleasantly surprised when it did not have any effect,” Ott says.

The Federal Trade Commission on Monday published the final version of its Guides Concerning the Use of Endorsements and Testimonials in Advertising. These new rules will govern how companies can use consumer, expert and organizational endorsements to make claims about products.

There are many important updates, which become effective Dec. 1. MarketingSherpa is working on an article describing the changes that marketers need to know. In the meantime, I want to point out one change that should concern anyone who sends free products to bloggers to generate buzz.

If a blogger writes a positive review of a product that you sent free-of-charge, that post may be considered an “endorsement.” It depends on the value of the product and whether the blogger routinely receives such requests.

“If the blogger frequently receives products from manufacturers because he or she is known to have wide readership within a particular demographic group…the blogger’s statements are likely to be deemed to be ‘endorsements,’” according to the guidelines.

“Similarly, consumers who join word-of-mouth marketing programs that periodically provide them products to review publicly (as opposed to simply giving feedback to the advertiser) will also likely be viewed as giving sponsored messages.”

Now here’s the kicker: if the post is deemed an “endorsement” and the blogger writes false claims into the review, the blogger and the advertiser are liable for the misleading statements.

So if you, a phone manufacturer, send a free phone to a popular tech blogger who writes a positive review that the phone also makes a fantastic life raft — you are liable for that claim.

The guidelines suggest that advertisers who send free products to bloggers (directly or through a service) make sure that they provide guidance to ensure that the bloggers’ statements are truthful and substantiated.

“The advertiser should also monitor bloggers who are being paid to promote its products and take steps necessary to halt the continued publication of deceptive representations when they are discovered,” according to the guidelines.

So if you are sending out free products to bloggers, your job might be more difficult after Dec. 1. Stay tuned for more info as MarketingSherpa digs into the details.

I was doing some much-needed browsing of the blogs this afternoon when I noticed a post from Steve Rubel pointing out this Internet Stats tool on Google’s UK domain.

The tool lets you search and browse data on:
o Macro economic trends
o Technology
o Consumer trends
o Media consumption
o Media landscape

The topics can be broken into subcategories, and the data is supplied by a few dozen research companies. The tool does not seem to have a ton of data, which gives it a more random than comprehensive quality. But nonetheless, there are some interesting stats, such as:

o Users are 1.5 times more attentive when browsing YouTube than when watching TV.
– Motorola (with Mindshare) and GM, partnered with YouTube, December 2008

o 5% of all time online is spent on Facebook.
– Comscore, April 2009

o 34% of Brits spend a whole day trying to find the best holiday deal online.
– Greenbee.com survey, January 2009

o 50.1% of online shoppers who placed items in their shopping carts did not go on to place an order.
– Core Metrics, March 2009

o Japanese etail giants can make as much as one quarter of their sales via cellphones. Nearly half of Tokyo’s single females are accessing the mobile web more than five times a week, with the peak shopping time between 1pm and 3pm reflecting the part-time employment status of many young Japanese.
– Internet Retailing, May 2009

I do not believe that the tool has enough data to  be useful, yet, but there is plenty of potential. One thing is certain: the data is really, really interesting.

We’re in San Francisco for our 6th annual B2B Marketing Summit, and this year we’re trying something a little different. In addition to the Case Studies and panel discussions attendees have come to expect, we’re kicking off the event with a new feature we hope will help marketers process all the information that you typically have to absorb at one of these shows.

Dr. Flint McGlaughlin, Director, MarketingExperiements, and Brian Carroll, CEO, In Touch, are leading a training session this morning to outline the top five ways to improve your lead gen programs. They’ve identified the five key “levers” that make the fine-tuned lead generation machine run.
Those levers:

1. Increase campaign response rates to drive more inquires
2. Optimize lead qualification to focus on “high quality” leads for sales engagement
3. Develop Service level agreement between marketing and sales to increase lead acceptance
4. Intensify leads in the marketing funnel with lead nurturing
5. Accelerate leads currently in sales pipeline

Think of those five levers as a framework to examine each aspect of your lead generation campaigns. Look for tweets and blog posts over the next two days, and a summit wrap-up report next week, that will use those levers to help categorize great lessons learned, key takeaways and data points from the show.

And we’re off…

While we wait for the Federal Trade Commission to release its updated testimonials and endorsement guidelines, I’ve been talking to several experts to get a better idea of what the revisions might mean.

Last week, I spoke with Todd Harrison, Partner, Venable LLP, who focuses his practice on consumer protection agencies’ rules and regulations on drugs, foods, dietary supplements and other products.

Harrison went over situations where an advertiser might have to disclose more information, or remove certain claims, to be within the FTC’s proposed guidelines. Other practices might be explicitly prohibited altogether. One method in particular stood out to me: flogging.

‘Flogs,’ or fake blogs, are set up by companies or affiliates to look like independent websites, but in fact only promote a company’s products. There are variations on this theme with sites posing as product review sites and news sites. All the content — the articles, the comments, the ratings — is false.

“They’re not real testimonials, but they’re representing real testimonials,” Harrison says.  “The FTC is probably going to make it clear that you can’t have ‘flogs’…Even under existing law, those material connections are supposed to be disclosed.”

Harrison mentions that some companies may have affiliates that are flogging without the companies’ knowledge. They might be selling products through an affiliate network that attracts unscrupulous sellers and have no idea.

My suggestion is that marketers to take a look at their affiliates’ websites and tactics to make sure that they’re not deceptive or unsavory. If you use an affiliate network, contact its administrators. A simple checkup should help ensure that you’re providing your customers with an honest experience, and that you won’t attract any unnecessary attention from the FTC.

Marketing has undoubtedly benefited from the control and measurability of online channels. Teams can use search ads, email and websites to test and tweak their way to astounding returns on investment. But has this come at a cost in creative license?

Marketing requires creativity. All those commercials, direct mail pieces, and landing pages have to be written and designed. However, tests often dictate their ultimate layouts and content. Is this trend brining us toward formulaic, uncreative marketing?

These questions arose during a recent conversation I had with Brian Maynard, Director, Brand Marketing, Jenn-Air & KitchenAid. They were an aside to a conversation we were having on a KitchenAid promotion strategy (full article coming soon).

“As we get better at measuring marketing,” Maynard says, “I fear a bit that in the future, unless you show a positive ROI on every single tiny effort, that you won’t be bold. You won’t step out and do something that’s exciting and innovative because you cannot prove that it works.”

Maynard also noted that he worries that marketing could become like factory work, where switches are thrown and 3,000 more units are sold. That kind of environment would not be conducive to risk taking and creative thought.

“The best marketing ideas have come from people who take a chance,” he says.

Where do you stand? Have you lost some creative license since the Internet’s arrival? Or does measurement simply guide your decisions, rather than make them for you? Let us know in the comments…

National brand marketers are in a challenging position as the power of localized marketing shows positive results. Some marketers need to reach large audiences through nationwide advertising, which makes it hard to localize the ads.

Alistair Goodman, CEO, 1020 Placecast, and his team strive to overcome this challenge–particularly for driving traffic to nearby brick-and-mortar stores. They help marketers run campaigns that are able to detect a consumer’s location and customize the ads to include localized elements.

“An advertiser can run a national campaign but actually create a large amount of local relevance,” Goodman says.

When building a campaign, Goodman’s team first asks marketers for:
o A list of the physical store addresses to which they want to drive traffic
o A profile of their target audience
o The goals of the campaign

This information helps narrow down the exact location of the campaign’s target audience, and helps guide the design of the localized ad. The ad will likely have some consistent elements — such as a product image — and some interchangeable elements — such as a city name, local imagery, or the address of a nearby location.

Knowing which regions to target, the team then finds publishers that have localized content for those regions.

“We create a network of publishers that have what we call location-specific content, where we can apply our approach to targeting,” Goodman says.

These publishers might be local classified, news or events websites. Other publishers, such as travel, weather, and real estate sites, operate nationally but deliver localized content. Visitors to these sites identify themselves as either residing in or interested in certain areas.

Goodman’s team recently worked with Avis Rent A Car to drive people to Avis’ off-airport locations. They were able to create a national campaign that connected ad viewers with the nearest Avis center.

The ads they displayed on regular websites encouraged viewers to click to see a map or book a car. The ads they displayed on mobile websites encouraged viewers to click to call the nearest Avis center.

The team did A/B testing of the localized ads vs. non-localized ads. They saw a 50% higher clickthrough rate on the customized Web ads and a 124% higher click-to-call rate on the customized mobile ads, Goodman says.

“When you’re able to develop a relevant message, you’re able to achieve much stronger results.”

We’re planning several studies about social media marketing, and we’d like your help targeting our research on the information you really need.

We’ve set up an online form to collect your questions about social media. Let us know if you’ve got questions about social media strategy in general, or questions about specific social channels, such as Twitter, Facebook, LinkedIn or MySpace.

Here’s the link:
http://www.surveygizmo.com/s/174250/smq

NOTE: This isn’t a formal survey that’s going to require a lot of your time. It’s a just blank field where you can supply as many questions or topic suggestions as you’d like.

Thanks for your input!