Ad-Tech "Master Class" Panel: If You Had $5 to Spend Online?

Earlier this week at Ad-Tech NY I moderated a "master class" session on "Building Brands Online" which included the NY Times, Kraft, Intuit, Zappos.com, and 1800Flowers.com, My core question for the panel was very simple, and quite pertinent to this market environment.  If your goal is to sell management on the value of investing online, and you only had $5 to spend, where would you start!  The answers were telling, and provide critical context to how we think about framing our value proposition – across all Nielsen Online products.  Richard Cacciato, who blogged for Ad-Tech, offers an excellent summary of the panel, and here are a few of my topline notes. 

• Andy Markowitz, leader of digital efforts at Kraft, suggested he’s take a step back before tossing money at marketing tactics (e.g. online advertising, social media), and would invest the money in nailing key consumer insights around online behavior.  What’s the core unmet need; is there something about Kraft’s target consumer online that might ultimately push a higher level of investment. 
•  Zappos.com, recently ranked by Ad Age as one of 2008’s top marketers (after the Barack Obama campaign), took a different tack, suggesting the $5 would best be invested in customer service, call support, or even employee training.  Great experiences, user-experience director Brian Kalma explained, ultimately grow the brand on the strength of favorable word-of-mouth – evident across an expanding spectrum of CGM venues, from blogs to twitter.
• Scott Wilder, GM of Intuit’s Product Development/Online Communities, insisted the money would best be invested in product, although his definition of “product” encompassed Intuits half-a-million user strong online communities.  The big payout of getting that right, he explained, is that the users not online drive favorable word of mouth, but act as a de-facto customer support labor force.  Nine of ten questions posed by consumers about Intuit products and services are answered by other consumers, often the most connected and influential.  Scott also underscored the invaluable insights that emerge from such “user contribution systems”
•  Jeffrey Graham, head of customer insights for the NY Times talked more about some of the efficiencies of spending the $5 on online advertising on increasingly participatory platforms like the New York Times.  Importantly, Graham nicely articulated how advertising in areas rich with influencers can potentially increase odds of success.  Increasingly, consumers are looking to their peers for buying behavior guidance,  he noted, and online advertising models need to wrap around that reality.
• Lastly, Kevin Randford of 1800Flowers.com underscored that he’s use the $5 to feed his already aggressive “test and measure” learning plan, even in new areas such as mobile, where ecommerce players are increasingly breaking new ground.  1800Flowers, he explained, is learning in real-time based on user-interaction, feedback, and even spending patterns, and the key for them is to invest any incremental dollars into accelerating that learning curve in an increasingly competitive environment.

Lessons from Obama’s Digital Effort:  Lastly, we couldn’t resist the temptation to ponder whether the Obama campaign’s online/digital effort represented a breakthrough or milestone for online investment.  While there was broad consensus that the Obama campaign rewrote the script of successful online activity, each panelist viewed it slightly differently.   One point I underscored, consistent with earlier commentary on the subject. the Obama campaign created the ultimate participatory “ecosystem” between offline and online activity.  Their CRM system bordered on science (alerts were sent moments before major events or speeches…even before the celebrated Chicago victory speech and the website maximized participation and engagement…at just about every level.  If you wanted to walk the streets at knock on doors, you could download a kit, complete with numbers.  If you wanted to self-organize your own social network you could do that as well.  If you donated money, they’d often play a “victory lap” video to drive an even deeper emotional connection.  More on this later.

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[Mark]

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