Thursday, October 1, 2009

Distribution revolution? By Even Aas-Eng

Since the arrival of the world wide web we have had three different phases of how we filter information (web sites).

First we had the web portals that gathered useful sites so it would be easy for people to navigate to the information they were looking for. The number of sites where off course very limited and if you tried a search engine to find something else you usually ended up on a porn site! As an advertiser the only real way of reaching a lot of people where through display ads or text links on the portals.

Then search engines (with less spam) changed the game completely. All websites became accessible through a search and a click. Great news for mankind and great news for advertisers that could add paid keywords and search engine optimization to their marketing mix.

Today we are well into phase three, social media. Filtering has again been taken over by humans (facilitated by technology) and social networks and user generated media are increasingly controlling our click streams and influencing our online decisions.

I am not writing this because we need yet another rant on how important social media is and how we can utilize it. What I would like to do is to emphasize one particular innovation, Facebook Connect.

Facebook Connect is a single sign on-service that enables user to logon to web sites outside Facebook with their Facebook login. Facebook Connect was launched in December 2008 and competes with openID and similar services. The difference being that Facebook is the Google of social media and a lot more powerful. For users Facebook Connect means that the actions they do on affiliated sites can be shared with their friends on Facebook. So again, great news for surfers of the web and a massive opportunity for advertisers.

Facebook Connect gives advertisers access to the most powerful distribution platform we have seen since Google took off early in this millennium. Here is why:

1) Facebook Connect lowers the threshold for participation. Who wants to create a new username and password? No one, we have way to many as it is. Using the connect service in advertising campaigns, on smaller niche communities or corporate sites you increase your signup rate massively because most people already have a Facebook account. (The Fluent 09/Razorfish report states that there is a 35% increase in the will for signing up via Facebook Connect)

2) Viral. Everything that you do on a Facebook Connect affiliated site can potentially be shared on Facebooks newsfeed or you can send a Facebook message. So if just ten people make an action and share it thousands may potentially see it. Someone will probably “Like” it and someone will probably comment on it.

It’s that simple and that important.
Try thinking about how you would attract new members to a niche community or how you would recruit users for an online competition with and without Facebook Connect and you will understand the importance of this feature.

I think Facebook Connect represents a distribution revolution, its one of the most important innovations we have seen in years and It will be a game changer.

Thursday, August 6, 2009

Who thought that a DVD rental would be the coolest place to work? By Even Aas-Eng

Today I picked up an article in a TechCrunch newsletter about Netflix. The American online DVD rental service apparently has a very interesting corporate culture that everyone now can read about after the management added their “Reference Guide on our Freedom & Responsibility Culture” To slideshare.

Some Highlights from the guide are:
- Netflix Vacation Policy and Tracking: "there is no policy or tracking."
- "There is also no clothing policy at Netflix, but no one has come to work naked lately."
- Netflix's policies for Expensing, Gifts and Travel: "Act in Netflix's Best Interests."
- Netflix on compensation: “When top of market comp done right... Nearly all ex-employees will take a step down in comp for their next job.”

So if you work at Netflix you can go on vacation whenever you like, show up naked in the office, receive a 50 inch LED TV as a gift from a Netflix partner (if it’s in Netflix best interest that you accept it) and while you are doing all this you will get the best compensation in the market!
I guess by now you really want to work with online DVD rentals!

Jokes aside, I think the presentation was very interesting. Its miles away from our Nordic “social welfare state” corporate culture, but it’s also miles away from most big American corporations excruciatingly boring “code of conduct”. What surprises me the most is that Netflix is not a small company. They are around 2000 people and their listed on NASDAQ. Alternative corporate cultures aren’t exactly uncommon in cool, tech start ups but they have a tendency to disintegrate as the companies go public.

Most companies like Netflix uses stock options as a way to keep the best talent. Google is a prime example, they gave all employees various number of options. Their strategy was never to be leading in compensation. When they went public in 2004 the initial offering was 85$, in 2007 Google hit 700$. Between 2004 and 2007 Google hired about 10 000 people, all got options. Because of the continuously rise in the Google stock its most have been a very effective way of keeping the best talent. There are two problems with this model though, its volatile and short term. Today Google shares are hovering around 450$.

Netflix offers stock options to those who want them but their strategy to keep the best talent is to offer them the best compensation in the market and let the employees decide what to do with it. The get rich quick opportunity disappears but you get long term stability and safety. I think most people would prefer the Netflix way.

Personally I have worked in India where I couldn’t wear jeans at the office except on Fridays and I have worked for Google where you got an incentive to buy a bike to save the environment… I prefer McCann here in Oslo where we have a mix of Nordic welfare stat socialism and IPGs code of conduct!

You can find the preso here: http://www.slideshare.net/reed2001/culture-1798664

Tuesday, June 30, 2009

Innovating pitch process

McCann in Turkey are currently in a pitch process with Turkish Airlines (TA) and the process has been very different and innovative. TA has placed clues online on different social media sites that the agencies involved has to find. You can read more about it here on McCann Turkeys blog: http://www.digithell.net/post/Now-We-re-Taking-Off!.aspx

Monday, June 15, 2009

The Bing project completed… By Even Aas-Eng

The last two weeks I have used Bing as my default search engine. The mission here was not to look at new features or functionality that only are available in the US version but to see if Bing could handle the day by day stuff.

So here is a little recap of my two weeks with Bing. I started off uninstalling my Google toolbar and got ready to install the Bing. Easier said than done… A search for Bing toolbar in Bing gave no results but I did manage to find a Live toolbar. It didn’t look good, no search history and no search suggestion. Two days after I installed the toolbar it mysteriously vanished…

Ok, let’s move on to the actual search results. I was astonished after searching for Facebook and not finding it on the first page. How is that possible? A search for “Aunan” (A salmon fishing camp at the Orkla river) gave no results at all, a search in Google and their homepage was at position number one.

When you search for a site using the complete domain ( for example VG.no) Google sends you directly to the site. Bing doesn’t and it’s annoying.

Today I was looking for a hotel in Oslo for a business contact who is visiting on Wednesday. I searched for the hotel name (Gabels hus) in Bing and got no relevant result on the first page. The same search in Google and the hotel web site hade the top rank.

The last two weeks every newsletter from TechCrunch has had at least one article praising Bing and talking about how great it is that someone tries to give Google a run for its money. There seems to be a lot of people wanting change in the search game. I am definitely one of them, but I can’t change my default search engine to something that is untrustworthy for the easiest requests. So for now its bye, bye Bing and welcome back Google.

Tuesday, June 2, 2009

Going completely Bing! By Even Aas-Eng

After seven years of Googling I will from now Bing things instead. If it’s not good enough I will change back in two weeks.

I will let you know.

www.bing.com

Wednesday, May 13, 2009

The link between display and SEM. By Even Aas-Eng

Online marketers can be divided into three categories:

1) Those who believe the display ad is dead and think SEM will solve all your problems
2) Those who believe the display ad is everything
3) Those who believe that the world is not black or white and that it might be interesting to look at marketing across media channels and platforms and that different companies might need different strategies.

Of these three categories it’s my feeling that unfortunately nr 1 is growing, luckily nr 2 is declining and nr 3 is growing but not fast enough.

Aegis owned SEM agency Iprospect recently released a survey that concluded that display advertising has a positive effect on your SEA campaigns and that display advertising could work even though people don’t click on your ad. Revolutionary stuff…
Don’t get me wrong, I think it’s great that Iprospect did the survey, I hope many people read it and I hope we will see more surveys like this in the near future, but it scares me that we are not more advanced in how we utilize new media.

I think it’s funny how SEM fanatic’s have trashed the display ad for years while their favorite company Google in the same period have invested BILLIONS to build the largest display ad network in the world. As mentioned before on this blog, the display ad isn’t dead it has just been revitalized.

I have been a SEM evangelist in the Norwegian market since 2003 but I never meant that display advertising don’t work. If you compare display and SEA by looking at CTR, CPC and conversion rates you are looking at two different planets, that doesn’t mean that one of the planets are about the be blasted out of the solar system. The role of advertising is to create demand and that is possible to achieve trough a social media concept, a display ad, a SEA campaign, a newsletter, a viral movie, a TV commercial, a social media ad, a web site, a DM, or a combination of all or some of the above.

Why box yourself in by just having faith in one type of advertising?

Iprospect survey: http://www.iprospect.com/about/researchstudy_2009_searchanddisplay.htm

Tuesday, May 5, 2009

The next pot of gold for the agency industry. By Even Aas-Eng

The SMB´s of the world have always been a key driver in online advertising growth. Google’s success being the prime example of how “uninteresting” companies suddenly became the backbone of their business model.

SMB´s are spending more and more dollars online and their perspective on what is “advertising” is getting broader and broader. Their web site is often their only communication platform towards their clients and it’s easy to understand its importance. This study that I stumbled upon shows that 2/3 of the marketing professionals in these companies wants to spend more money next year in the “media” channel “my own web site”. The next wave of new corporate web sites is a huge opportunity for marketers. Finally the market will approach the job wanting to create value for users and not only show off the new fancy logo and the CEO!

The blurring lines of what is advertising is critical to understand if you are in the agency business today. One side of the coin is a huge opportunity the other a big threat…

The report is here: http://www.borrellassociates.com/report_details.aspx?prodID=173