As Economy Falters, Where’s the Innovation?

For the second month in a row, China reported a decline in exports--This time, by nearly three percent and hundreds of workers are losing their jobs. This is a major decline for the cheap producer of global products and just the beginning of the ripple that the country is beginning to feel since the financial crisis began.

Adding insult to injury, Sony is reporting its first loss since 1995 and it will be a major $1.1 billion. Due in part to heavy spending during the holiday season that didn’t produce the results the electronics giant was looking for.

Even in this crisis, companies dabbled in social media and search marketing but continued to spend the majority of their budgets on traditional efforts while ignoring opportunities to slash costs and speak to their best buyer profiles, directly.

Some of the blame lies with the agencies that keep pushing high cost tactics and are reluctant to understand and fully embrace more strategic methods--Working their way towards a pink slip at the very same time.

I was interviewed by a reporter recently that asked me why these tactics are so important and it kind of just rolled off my tongue.

“It’s no longer about casting the widest net and hoping the 10% you need will respond, but rather speaking to that 10% directly and trimming the waste.”

Recessions often generate innovation but fresh ideas among the biggest marketers seem to be slim. Wouldn’t it be nice to see the bailout conditions include revising marketing plans to include more cost saving innovation?

Obama Camp uses Creative and Internet Tools to Innovate

The screen shot says it all.

Obama’s Campaign has really done a great job of mixing the tools of internet marketing with powerful creative and some intelligence to maximize its opportunity.

Their use of CNN’s story layout, key word matching tools and user data turned prime real estate into an easy opportunity for the viewer to click and learn more, perhaps even to clear up anything the story might be reporting, such as "trust."

It's a quick jump from the story highlights—a favorite feature of the CNN website and they’re probably even using some of that data to put a more flattering photo of Obama next to what is likely not to be so for McCain.

While there is some luck involved in creating that perfect match, we can probably assume that Obama has several ad variations running on CNN, matching different keyword and user data points.

I takes a bit of that tenacity I speak about, but their campaign has plenty of it. They have benefited from what has been learned during an impressive and aggressive online campaign thus far.

Tenacity Nets Ripest Fruit in Google Advertising

There’s a lot of talk lately about how much Google Adword marketing costs. Recent reports suggest that advertising behemoth WPP group spends nearly $900 million a year on client Google Adword campaigns. On a smaller scale, a friend of mine works for a very specialized software company that spends nearly $4000 a month.

While I’ll admit it isn’t cheap, some of it is wasteful spending on the part of those running the campaigns. Those that see things with a bit of an old school perspective have yet to grasp the use of real-time data and experimentation. It’s easy to get lost in the idea that success can only be found through the highest bid, which isn’t necessarily true.

We were recently asked to retool a client’s Adword campaign. In about a month, we managed to cut the budget by a third while seeing inquiries increase by 95%. Equally, the quality of the lead improved with about half of those inquiries actually becoming clients.

While some Google science is involved, the beginnings of a successful campaign combines tenacity and creative copy writing:

• Variations: Trying multiple ad variations will give you an idea of what works best
• Be specific: Create specific ads for niche markets and keywords as one size does not fit all
• Relevant Landing Page: Get past the idea that it’s like a newspaper ad where people pick up the phone and call. Getting them to click is half the battle but where they land after that still requires selling
• Monitoring the Incoming Results: People ignore the best data resource available—inquiries. Set up a system for monitoring inquiries, where they come from and what they search for.

I’ll admit that another large challenge is learning how to use all those Google tools to maximize results. That’s the portion that can take a campaign beyond the tipping point and can be overwhelming to those who are trying to “manage the shop” at the same time. However, the opportunity to reach the exact person looking for you is incredible.