Magazines against the Wall?

A near-impenetrable wall once separated editorial from advertising.

But with ad-income in decline—and without hope of turnaround—magazine publishers are capitalizing on their editorial prestige to create new revenue streams, says Ryan Derousseau in Folio:

• Readers of New York trust its writers' recommendations about what's worth buying. So the publisher has started to rake in dough from affiliates via outbound links in the articles on its website. Whenever readers click to a partner's website, money changes hands. The publisher's policy: to plug only products "the editors or writers stand behind.” Affiliate revenue is growing 40% a month, and has inspired the publisher to open pop-up shops at festivals.

• The Atlantic has become advertisers' digital agency, exploiting its advantage in measuring readers' clicks. Besides audits, the publisher creates and runs entire content-focused, multichannel campaigns for advertisers. The campaigns can include sponsored pieces of original journalism. The in-house agency is the fastest growing division of the company. It expects its revenue to rise 32% this year.

• Time is licensing its portfolio of brands to retail outlets. Readers can find kitchenware, bed linens, rugs and other merchandise in stores that are branded Real Simple, People, Food & Wine, and Southern Living. Licensed products sold in Dillard's have grown to 110 in two years.

Does monetizing readers' trust in these ways endanger that very thing?
Probably not.

Audiences are so used to paid sponsorships, they give them no thought.

Nobody turned off the last NCAA Tournament because every other player's jersey has a Nike swoosh. James Bond's Omega watch didn't prevent Skyfall from becoming a box-office smash. Mentions of the Peninsular and Oriental Company in Around the World in Eighty Days didn't stop Jules Verne's novel from becoming a classic. And Esquire readers ate up David Ogilvy's take on oysters for Guinness.

How to Refine Your Retargeting

Retargeting yields B2B marketers stronger results when linked to precise goals, says Demand Gen Report.

Retargeting experts insist the technique should not be considered a marketing channel unto itself, but a tactic that can reinforce other channels such as social, email, direct mail, telemarketing, and face-to-face.

An account-based approach to retargeting (limiting your ad targets to a list of prospects at specific companies) also boosts results.

"With an account-based approach, companies can identify the accounts that can have the biggest impact on their business and focus retargeting on those companies," says Peter Isaacson, CMO, Demandbase. 

That approach lets marketers personalize retargeted ads based demographics like industry and company size, and on product interests.

Retargeting should also be linked to speedy follow-up by salespeople.

"Too often, marketers focus on ads only," Isaacson says. "But to drive business metrics, you want to make sure there is triggering sales activity. This includes triggers to bring in sales development reps and account development reps to get involved and tie these initiatives to potential bottom line revenue."

Digital Damage

Digital ads could be alienating B2B buyers, says Julie Ogilvie, senior research director at Sirius.

Because the ad units are tiny and compete in cluttered environments, B2B marketers are resorting to intrusive techniques that may be damaging their brands.

Ogilvie cites three:

Retargeting. "The idea behind retargeting is solid," she says. "However, in execution it can become annoying if the ads are popping up for months on end or are appearing in inappropriate environments."

Clickbait. Digital ads sporting sensational headlines "almost always disappoint in terms of what is delivered." The disappointment is reinforced when retargeting is used.

Native ads. Digital ads dressed as editorial content can also annoy and disappoint. Although buyers will respond, "many people still end up feeling deceived by messages that appear to be one thing but turn out to be another."

"In all these examples, people have come to feel that they are being tricked or harassed by advertisers," Ogilvie says.

Techniques like retargeting, clickbait and native advertising generate impressive response rates, she admits.

"But response rates do not always equal conversion rates—or revenue. And there is still the question of short-term vs. long-term gain. Brands are about building relationships and trust with our audiences."

You need not worry overmuch you're alienating your whole audience.

While you may be angering Boomer and Gen X buyers, the majority of Millennial buyers have installed ad blockers.

The Hidden Presuaders

Vance Packard's 1957 best-seller The Hidden Persuaders convinced Americans that midcentury admen were gobbling up CIA-sponsored research studies and using the results to prey on consumers' frail and listless minds.

The title's "hidden persuaders" referred to subliminal messages, which Packard insisted made midcentury ads irresistible.

Cynical admen were embedding lurid words and racy images in ads for things like laundry detergents, cars, whiskies and cigarettes, in order to trigger customers' Freudian desires for pleasure, he claimed.

Ad agencies, Congress and the FCC scoffed at the idea, but the reading public embraced it.

Everybody loves a conspiracy, as Freud would say.

Flash forward 70 years and Robert Cialdini's best-seller Pre-Suasion provides a new generation of marketers the ammo they need to prey on customers.

Pre-suasion is a technique for gaining agreement with a message before it’s sent. 

Drawing on hundreds of social science studies, Cialdini makes two principal arguments:

1. To persuade a customer to make a certain choice, the marketer must first trigger a mental association that implies "change is good;" and


2. The factor most likely to determine the customer's choice is the one a marketer elevates in attention moments before the decision.

According to Cialdini:

• To get a customer to like you, first hand her a warm drink.


• To get a customer to help you, first ask her if she considers herself a helpful person.


• To get a customer to try your untested product, first ask if she loves adventure.


• To get a customer to buy a popular product, first show her a scary movie.


• To get a customer to buy an expensive product, first ask her to write down a number higher than the product's price.


• To get a customer to think about your proposal, first show her a photo of Rodin's The Thinker.


• To get a customer to buy French wine, play French music as she enters the store.

"The key moment is the one that allows a communicator to create a state of mind in recipients that is consistent with the forthcoming message," Cialdini says. It’s the moment in which we can arrange for others to be attuned to our message before they encounter it."

DO YOU KNOW? Movie-goers were traumatized when The Exorcist premiered in 1973. Many fainted, vomited, and fled from theaters in the middle of the picture. That's because William Friedkin laced the film with horrific subliminal images.

Thoughts We Hate

Washington, DC's Metro this week removed transit ads placed by Milo Yiannopoulos for his new book, Dangerous.

Riders complained via Twitter the ads from the former editor of Breitbart News had no place in public.

The transit agency defended its action by claiming the ads violated its advertising guidelines.

“Advertisements that are intended to influence public policy are prohibited,” Metro said, although it decorates trains and stations endlessly with public-policy ads.

In a statement, Yiannopoulos asked Metro officials, "Is my face a hate crime?"

Until last month, a Constitutional lawyer (I'm not one) might argue, "Yes."

But the Supreme Court says differently.

In June, it unanimously ruled disparagement of minorities— Yiannopoulos' stock in trade—is protected under the First Amendment.

Justice Samuel Alito, in Matal v. Tam, wrote that government restrictions on speech expressing offensive ideas "strikes at the heart of the First Amendment.

"Speech that demeans on the basis of race, ethnicity, gender, religion, age, disability, or any other similar ground is hateful; but the proudest boast of our free speech jurisprudence is that we protect the freedom to express 'the thought that we hate.'”

Either It Looks Like a Miracle or It's Stupid

My ad agency years taught me never to show clients work that, for all purposes, couldn't be released as is.

Showing anything less than finished work gives clients little to evaluate. And showing anything less destroys the magic.

So I was gratified to hear an actual magician, Teller, express this principle to the host of NPR's This American Life.

Teller describes how he labored for months to incorporate the legendary "floating ball routine" into Penn & Teller's show.

Teller worked alone at night on an empty stage in a darkened theater, week after week, testing move after move after move, to make the trick fresh. He tested different props; built a stage set; abandoned it, and built another.

Only when he'd perfected the routine did Teller show it to his partner.

"Why didn't you just show Penn something rough?" the host asks Teller. "Just something with the moves you'd been inventing?"

"No, no, no!" Teller insists. "That's the thing about magic. You can't look at a half-finished piece of magic and know whether it's good or not. It has to be perfect before you can evaluate whether it's good.

"Magic is a fantastically meticulous form. Magic is an on/off switch. Either it looks like a miracle or it's stupid."

Ready to Work Two Jobs?

I often encounter folks who've opted, or been forced, to freelance.

A great many share something in common: they don't want to work two jobs.

Unfortunately, that's what you have to do to succeed.

Because it ain't easy to cultivate "1,000 true fans." Else, we'd all do it.

Editor Kevin Kelly first expressed the idea a decade ago:

You can define a "true fan" as anyone willing to send you $100 a year for your product. Provided your cost of goods is low, a freelancer can get by comfortably with only 1,000 true fans.

And the money need not arrive in lump sums; it can trickle in (fans can subscribe, say, at the price of $8.34 a month for 12 months).

However you're paid, the bar to success is low, Kelly says.

"To be a successful creator you don’t need millions. You don’t need millions of dollars or millions of customers, millions of clients or millions of fans. To make a living as a craftsperson, photographer, musician, designer, author, animator, app maker, entrepreneur, or inventor you need only thousands of true fans."

Besides keeping costs low, the challenge freelancers face is difficult enough to put most of them off.

To succeed, you have to cultivate 1,000 solid relationships―both financial ones (no one else can profit from your work) and professional ones (fans must like and trust you).

It's easy to attract 1,000 or more fair-weather fans (just ask Paul Reubens). But you need 1,000 diehards.

And, although digital platforms that enable relationships with diehards abound, nurturing those relationships could kill you.

"The truth is that cultivating a thousand true fans is time consuming, sometimes nerve racking, and not for everyone," Kelly says.

"Done well it can become another full-time job."

The Return of the Native

At a workshop on ad retargeting I recently attended, a well-seasoned colleague dropped the word "advertorial" in conversation.

My response: "I bet that's something no Millennial's ever heard of."

Before The New Rules of Marketing and PR ushered in the era of "brand journalism," advertorials were a staple of B2B advertisers and publishers.

And they still are—even more so. But today we call them "native ads."

A wolf in sheep's clothing, a native ad is meant to trick the reader.

The term "native" implies the ad has infiltrated the flock.

It says nothing about its clothing—its look and feel.

But that's misleading, says ad salesman Rich Rosenzweig.

An ad isn't "native" just because it's commingled with non-branded content, Rosenweig says. It's native because it disguises itself—and doesn't "interrupt" the reader.

"An ad unit is native only when it matches the look, feel, user path, and quality standards of the editorial content to which it’s adjacent," Rosenzweig says.

Artless native ads—non-skippable video ads, in particular—backfire, because they interrupt readers.

"Poorly executed native ads wind up tarnishing both the advertiser and the publisher; an unexpected interruption contributes to ad blindness, ad avoidance, and ultimately, ad blocking," Rosenzweig says.

Publishers are more to blame than advertisers, because they've dropped all standards.

"The relationship between branded content and the editorial feed is very much in flux," Rosenwieg says, "with different publishers taking wildly different approaches to how they position one against the other."

If publishers don't adopt a few reader-friendly standards soon, they're likely to drive them all to safer pastures.

First Cut

US advertisers last year spent 21 cents of every ad dollar targeting radio and print audiences; 38 targeting cable TV viewers; and 41 targeting mobile phone users, according to Kleiner Perkins.

No surprise here.

Americans over 65 still love their cable TV. In fact, they devote 58% of their waking hours to it, says the US Bureau of Labor Statistics.

But Americans under 65 don't—and they're cutting the cable for the ad-free TV streamed by Netflix and its competitors.

Where ads once enriched many companies, only two—Google and Facebook—are reaping cable cutting's windfall.

And it's Netflix's fault, media reporter Derek Thompson says.

Netflix launched subscription-based TV, robbing large screens of viewers—and advertisers of prospects. As a result, advertisers are targeting viewers under 65 on their phones, where Facebook and Google have a duopoly.

"If the dynamic tech duo could go back in time and design the perfect ally to push advertising from TV to mobile phones," Thompson says, "it would look exactly like Netflix."

B2B Print Advertising Lingers On

Print may be passé, but B2B marketers nonetheless spent $9.75 billion on print ads last year, according to MediaRadar. That's more than the GDP of many nations, including Cuba, Ethiopia, Nicaragua, Oman and North Korea.

Ad dollars are no doubt shifting to digital, as B2B marketers devote more of their money each month to email, native ads, and video ads than print.

And 6 of 10 B2B marketers who spend money on digital advertising spend nothing on print.

The stalwarts who do are narrowing the list of magazines they place ads in, favoring industry-leading ones over niche ones.

B2B magazine publishers, of course, are scurrying to go digital and diversify their lead-gen offerings.

Breakout at Tiffany's

Will brands take stands?

Last week, Tiffany & Co. placed an anti-Trump ad in The New York Times. The ad broke the same day on social media.

Two days before the company ran its ad in the Times, Tiffany joined Google, Facebook, Microsoft and other brands to run a comparable ad in the paper.

I predict we'll see more brands take stands as Trump's extremism escalates and his standing in polls plummets.

Business and politics normally don't mix.

But "normal" is up for grabs.

POSTSCRIPT: In related news, Trump is now calling his daughter Tiffany by the name "Cat."



UPDATE: Patagonia has joined the list!

The Headline I Wish I Wrote

HAT TIP to Seth Godin

The Magnificient Seven

On her blog, B2B marketing maven Ruth Stevens ranks seven channels by their power to acquire customers. In order, the channels are:

SEM. "The hottest of the hot," because buyers head to Google first to solve problems. "Marketers can hardly find more targeted media," Stevens says. The key to success, of course, is to pick keywords buyers use.

Telemarketing. The "workhorse medium of B-to-B direct marketing" and "the closest thing to a face-to-face selling environment." Beside selling, telemarketing is ideal for lead discovery, qualification and nurturing.

Letters and postcards. "The ol’ reliable," direct mail delivers. Buyers want information to help them do their jobs, so postal pieces are likely to be read.

Dimensional mailers. "Lumpy” mailers gets past gatekeepers, so are even more likely to be read.

Trade shows. Face-to-face performs spectacularly—when the audience is qualified. Big "horizontal" shows can be wasteful.

PR. "Simply the best bang for the buck," PR delivers awareness with high credibility. Contributed articles and news “manufactured” by original research work well.

Your website. "Your own website is the tool that can provide the cheapest, and the most qualified, sales leads," Stevens says. To work for you, your site must feature an offer and a call to action. That offer can be as simple as a white paper or e-newsletter.

What channels aren't gang members?

Print advertising. "Solid direct response ads can work brilliantly for lead generation," Stevens says. "The problem is that most ad budgets are controlled by marketing communicators who are unschooled in direct marketing."

Broadcast advertising. With the sole exception of some radio buys, ads run on broadcast and cable outlets are expensive and wasteful.

Email. "Despite its promise, email has failed business marketers as a prospecting medium, due entirely to the scourge of spam," Stevens says. "We are seeing better cost-per-lead results using direct mail."

PS: Ruth Stevens is a featured speaker at DARE, next June in Baltimore. Don't miss her!

B2B Marketers: Should You be Festive this Holiday Season?

This December, should your content go all-in on the normal holly-jolly? Or should you just skip the festive look and feel?

Bear in mind, more than half your customers are despondent. Should your company pretend otherwise?

I have six suggestions:

Dial back the ho-ho-ho. Would you wear a sequin cocktail dress to your brother's funeral? Leave the snowmen and candy canes in storage this year; they'll be an eye-sore to many. Stick instead with your year-round branding.

Step up your social outreach. B2B social media users spend more time sharing in December, so beef up your posting, social advertising and social selling. But avoid syrupy stuff. Provide value.

Make it personal. Personalized messages will help you stand out from the automatons deaf to the nation's mood.

Re-gift your best content. Republish the year's best content. Package a blog-post series as an e-book; an article as a year-end checklist; customer research as a white paper. 'Tis the giving season.

Align with sales. Alignment with sales is critical every December; maybe more so, this year. Create content sales can use to close deals—data sheets, testimonials and case studies.

Ask for wisdom. Don't just eschew frivolity; promote serenity. In 1963, when LBJ lit the National Christmas Tree a month after JFK's murder, he urged Americans to turn from "things false and small" to "things true and profound." He went on to say:

We have our faults and we have our failings, as any mortal society must. But when sorrow befell us, we learned anew how great is the trust and how close is the kinship that mankind feels for us, and most of all, that we feel for each other. We must remember, and we must never forget, that the hopes and the fears of all the years rest with us, as with no other people in all history. We shall keep that trust working, as always we have worked, for peace on earth and good will among men.

NOTE: Opinions at my own.

The Marketing of Tomorrow

What's ahead for marketing tomorrow?

Writing for Forbes.com, Kimberly Whitler, a professor at the University of Virginia, asked CMOs for their predictions. 

She discovered:

• "B2B influencer marketing" will become all the rage. CMOs will turn to popular business authors, speakers, podcasters, and executives with large followings and pay them to hawk their products.

• CMOs will also begin to rely more on employees to spread brand messages through social, knowing they can speak more effectively than ads. And, because buyers hang out on many social platforms, CMOs will begin to think "multichannel first."

• B2B CMOs will embrace "account-based marketing," but not without a struggle, because it's hard to influence every decision-maker on every buying committee. To that end, CMOs will begin to use a "recommendation engine" like the one used by Netflix.

• Design will become the key brand differentiator, because big data is now just a "commodity." And educational content will become king. Unfortunately, CMOs will produce too much of it for buyers to absorb.

• CMOs will quit focusing on new martech (although thousands of new martech products will flood the marketplace). CMOs will focus instead on cybersecurity. They're spending up to 25% of their budgets on social, and have made their companies targets for cybercriminals.

• 30% of CMOs will be fired next year, because they lack the ability to drive results. Polish that resume!

My 5 All-Time Favorite Books on Marketing

You witness it every day: the fundamentals elude many a marketer's grasp.

But imbibing the fundamentals is fun. And easy.

Just make a pact with yourself to (re)read these five mind-blowing game-changers in the next few months.

You'll thank yourself.

Your boss will thank you, too.

Confessions of an Advertising Man. David Ogilvy's 1963 romp is a blueprint for sound marketing. In keeping with its title, the book begins, "As a child I lived in Lewis Carroll’s house in Guildford. My father, whom I adored, was a Gaelic-speaking highlander, a classical scholar, and a bigoted agnostic. One day he discovered that I had started going to church secretly."

Positioning. Revolutionaries in 1981, Al Ries and Jack Trout were the first marketers to recognize content glut was our biggest challenge. The book opens with the statement, "Today, communication itself is the problem. We have become the world's first overcommunicated society."

Influence. In Orwell's year, 1984, Robert Cialdini mashed business and psychology to create every marketer's playbook. Cialdini has just augmented his classic with a new book, Pre-Suasion. You might read this book, too.

Maximarketing. Stan Rapp and Tom Collins ushered in the age of personalization in 1986. The technology has changed, but the principles they cite haven't. When Maximarketing was published, David Ogilvy said, “Everyone in advertising must read this book.”

New Rules of Marketing and PR. David Meerman Scott blundered onto a path for marketing his employer's products and turned his journey into a 2007 book. Marketing hasn't been the same since. Scott didn't invent content marketing, but he was the first marketer to recognize its primacy. "Put out great content, and you’re great," he said. "Put out crappy, and you’re crappy."

NOTE: I have encountered a sixth ground-breaker that belongs on the list, Experiential Marketing. 

E-mail: The Marketer's Trump Card

While e-mail marketers wish everyone had OCECD (Obsessive-Compulsive Email Checking Disorder), consumers indeed check their emails avidly, according to a new study by Mapp Digital.

Nearly all consumers (98%) check emails 3 times a day, the study shows; and over one-fourth (28%) check them 4 to 10 times.

That activity makes e-mail the marketer's trump card—particularly with Millennials—says Mapp Digital's CEO.

"The survey results suggest that this group of consumers are engaging with fewer brands on a more intimate level," says Mike Biwer.

"Millennials and Gen Y are strong audiences for email marketers, but now more than ever, the email marketing experience needs to cater to what they want and how they want it."

The study also shows smartphones are a driving force.

Eight of 10 Millennials (83%) check their emails on smartphones; and 7 of 10 consumers in every age group do so.

iRobot

%%^So87** 9ih07s>lcs 8;l#jdfdci

That may be the next headline I write for a client (it's a damn good one, too).

Tomorrow's advertisers will target not consumers, but consumers' “personal algorithmic assistants,” according to futurist J. Walker Smith.

In only a few years, we'll be surrounded by smart devices loaded with sensors, “so we can passively maintain our lives while the sensors and technology actively handle the details," Smith says.

Sensors in our phones will choose the music we play based on our moods. Sensors in our necklaces will monitor our caloric intake. Sensors in our shoes will connect to Google Maps and lead us to the store. Sensors in our toothbrushes will track how many times we brush our teeth each week and report our habit to the dentist.

Advertisers will therefore sell to sensors, rather than consumers, Smith predicts.

Ad copy will seek to change the "preference profiles" directing the sensors' algorithms.

Ad man David Ogilvy once admonished his agency's copywriters to respect their audiences.

"The consumer isn't a moron. She's your wife."

I look forward to the day I can say, "The consumer isn't a moron. She's your toothbrush."

Laundry Lists Kill

Want to kill audience interest quickly? Use a laundry list.

"We think dumping the entire contents of the benefits-basket onto a reader, viewer, or listener will outpull selective choice," copywriter Herschell Gordon Lewis once said. "Not so, because emphasis becomes diluted. When you emphasize everything, you emphasize nothing."

But wait, it gets worse.

Laundry lists not only kill interest. They can kill a deal.

Good salespeople know this intuitively: If you want to kill a deal, introduce an extraneous element. Laundry lists introduce baskets of them.

Laundry lists bar interest and block deals. So avoid them.

To create a responsive ad, letter or email, choose one benefit your audience values, and subordinate the rest.

Road Rage

Travelogues are all the rage among itchy-footed Millennials, so travel marketers are heading there.

Brett Tollman says his company, The Travel Corporation, will turn to travelogues to break from the pack of tour operators.

The company will rely also on social media influencers to tell those tales.

All told, the company hopes to romance 16.2 million Millennials in 2016.

To that end, one of its brands, Contiki Travel, rolled out Roadtrip 2016 on YouTube in May.

Although peers remain the top source of recommendations, Tollman thinks meandering Millennials will start to shop for destinations based on branded mobile channels—provided the storytelling there is good.

The travelogues on those channels, if compelling, will not only pique Millennials' interest, but build loyalty to the sponsoring tour operators.