Although still the number one show on network TV, American Idol has seen a steady rating decline this year to it’s lowest totals in five years.  Many theories have been offered  - lackluster contestants, people growing tired of the format, a general post-strike decline in viewership to name a few.   I would suggest another reason why the show has generated almost no buzz this year and people are tuning out.

In the past AI has been a masterful example of combining content and sponsorship.  In this age of permission based marketing, they came up with a formula that was compelling to fans while providing companies like Coke, AT&T and Ford a great marketing vehicle.  Once this show became a huge hit – the producers and FOX amped up the tie ins and revenue opportunities.  They produce records, concerts tours and TV shows.  The voter results show was expanded from 30 minutes to an hour to sell more commercials.  And, they added more promotional deals with iTunes and with “guest mentors” who had new albums to hawk.  Slowly but surely, the marketing and advertising overwhelmed the content portion of the show and this year was the tipping point.  For example, the addition of an AT&T sponsored segment where “random” fans call in to ask questions is nothing but filler and painful to watch.  You almost expect Ryan Seacrest to come out one night wearing a sandwich board with an ad for Maaco Auto Body shops.

I am a fan of the show, but felt like I just spent two hours a week watching an infomercial.  The desire for promotion really hurt the perception of this year’s contestants by forcing them to sing songs by artists who are not relevant to today’s audience.  Two weeks of Beatles songs were a bore – for today’s kids, it does not mean that much, and for those of us over 35, we have heard them a million times.  Then they moved on to Dolly Parton, Mariah Carey and Neil Diamond –who shockingly, all had new albums and tours to promote.  Can anyone name me three Dolly songs? Mariah has more #1 hits than anyone – but are any of them remotely memorable.  However, the highest rated show on the unintentional comedy scale was “show tunes” week with Andrew Lloyd Webber. 

You get the feeling it all about driving sales and playing it safe for the sponsors.  It is just a little coincidental that contestants who are different (i.e. possibly gay) or edgy (tattooed) find themselves gone early and the bland survive.  The success of the incredibly boring and cloying David Archuleta (known as the “Gasper” on Idol fan site Vote for the Worst.com) is symbolic of that trend.  He may be the single least entertaining person on television.

For the show to be successful past next year, the producers really need to examine the balance between content and marketing.  While we often profess that content based permission marketing is the wave of the future, AI is a cautionary tale of what happens when the mix gets out of balance.  I know we are all in business to make a buck, but guys, take it down a notch or you will kill the golden goose.

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This year’s Digital Hollywood conference in Los Angeles has been shedding light on the significant challenges marketers face as they try to lasso prospects online. By and large, the panelists have been candid about the immaturity of this medium, but have been unified in their belief that traditional advertising is waning, and providing prospects with meaningful online experiences is the cost of entry.

The panelists, most of which carried senior executive titles, provided sound bites that had me in complete agreement. Here is a sample.

During a session entitled: The Web, Social Media and Advertising: Transforming and Disassembling the World of Traditional Media and Communications, Matt Rosenberg, Group Director, Organic said that to be successful, “Brands are immersing themselves in the content experience…you need to let your brand take a backseat.” I absolutely agree, and that is a core strategy at King Fish Media, where our job is to help clients engage with prospects and clients on a far more meaningful level than brand advertising offers.

Recommended contacts who spoke at this panel:

Raquel Krouse, VP Social Media, Interpublic Emerging Media Lab
Matt Rosenberg, Group Director, Organic
Mark Lewis, Strategic Planning Director, DDB San Francisco

The next session, Bridging TV and Broadband: Strategic Relationships – Advertising, Technology and Content, took the full customer immersion concept to a different level. A senior executive from the Home Shopping Network candidly evaluated her brand, and said that the universal knowledge of her brand allowed for movement into new media platforms (Interactive TV and .TV), saying, “People at the company worried about these platforms, but with the huge brand loyalty, they go wherever the brand goes and build communities there.” We, at King Fish, describe this phenomenon as owning, not renting your own media channel – Private Media.

Recommended contacts from this panel:

Jeff Miller, President and CEO, ICTV
Fred McIntyre, SVP, AOL Video

On a separate note, I hope to never again hear these words as much as I have during the last three days: “paradigm” (thought we were done with that), “frictionless”, “zero sum game”, “net loser” and “value proposition”.

During each of these sessions, I heard frequent confirmation that intent-based vs. interruption-based communications is the most effective means for clients to communicate with their prospects and customers; custom media provides the single strongest venue to effectively achieve success with this effort.

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I recently came across some interesting brand loyalty research.  This article from Chief Marketer  refers to a study done by Brand Keys that looks at a “Customer Loyalty Engagement Index”. In a nutshell the findings suggest customer loyalty greatly increases when products and services are customized to the consumer.  This makes perfect sense, as customization is becoming more critical to marketers as product differentiation is becoming hard to come by these days.  It is a testament to world wide engineering and manufacturing skills that most products sold in the US today are made very well.  Since most competitive products do the same thing reasonable well, the ability to customize for a specific buyer has become an attractive product attribute.

The two factors driving the age of customization are the same ones that are driving the move to private media channels and content marketing.  An advance in technology and web adoption has made ordering customized products or consuming custom content real and easy to do.  However, the biggest factor is that consumers have the power and are in control of their choices.  The web has empowered consumers to shop and/or gather information across the globe.  It also plays into the consumer’s mindset – they would much rather have something created just for them instead of the same product purchased by the guy down the street.

You can see how this can apply to your marketing choices – if you send your customers content that has been customized for them, you will increase your chances of building a relationship of affinity, trust and loyalty.  Many companies are missing a golden opportunity to build a stronger relationship with their customers by not communicating with them in a customized private custom media venue.  How many companies are still relying on mass market bulk mailings to talk to their customers if they talk to them at all?  The technology exists where you can mine your database to know a customer’s interests and tastes; why not send them content and marketing messages that are customized for them instead of a generic catalog or email?  Or even worse, do think you are hitting your current customers with a mass media ad that is focused at prospects?  Marketers are required to evaluate their customer communications in light of changes in the way people desire and consume information. 

We are in the age of customization, and savvy marketers don’t want to be sending yesterday’s news to tomorrow’s customers.

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While watching the Today Show this week it was announced that Mothers Day is officially 100 years young. In honor of this blessed event, Matt Lauer along with Donny and Marie Osmond shared that the newest reality search involved the hunt for “Americas Favorite Mother”. They explained that there were many categories to be won including: Single Mom, Military Mom, Working Mom, etc.—you get the drift. They were narrowing it down by communities and common characteristics. I was impressed at the categories they came up with. I started thinking just how many types of moms there are out there. While the whole effort was a little saccharin sweet for me initially, I warmed up when I realized that NBC was recognizing different communities of Moms and praising their unique qualities.

My essential disappointment with most communications aimed at Mothers is that we are lumped together in spite of our cultural, personal, educational and financial differences. “Mother” just casts too broad of a net. The act of giving birth defines us all, but once the pod has separated from the Mother-ship our differences begin. We have various and sometimes opposing opinions on feeding, care and nurturing of our offspring; we have diverse interests in hobbies, books, sports and life in general. And like other communities we tend to flock together by our common interests, characteristics and beliefs.

Check out CafeMom if you really want to see the blended complexion of our community. In the 33 pages of sub communities on CaféMom, there was something for everyone! There are groups based on demographics, psychographics, social activism, body type, job-related concerns, media preferences and of course, sexual interests.

Some of my personal creative and slightly strange favorites are: Anarchy Moms, Mothers Against Pedophiles (is there a group that was defined as Mothers FOR Pedophiles?), Nestlé Free Zone Moms (they don’t like Quik?), Poetic activist Moms, and my personal favorite, Pistol Packin’ Mommas. And these moms are ready and able to share tips, insights, secrets, fears and accomplishments as they related to their own sorority. Whether it was pro-breast feeding, tackling teenage depression or fitness fiends over fifty, these women communicated with each other eagerly and often. There is camaraderie among the women whose husbands don’t pay their child support. There is empathy for parents with autistic children. The social networking is fun but also therapeutic and often liberating.

Of course CaféMom is only one of thousands of sites designed for moms to meet and mingle; and it just happens to be one of my favorites. It’s the micro-networks and communities within the bigger picture that makes it rich. It’s not just a place for Moms, which it is. It’s that there is a home for all types of Moms. It’s about the specific content delivered to the participant who is passionate about a topic. The compelling mix of targeted community and content is the reason that CaféMom has experienced 507% growth from January to June of 2007. The customized experience builds affinity with the site so the average session time is almost 22 minutes. The net result is an ideal environment for targeted marketing messages.

So Pistol Packin’ Mommas rejoice! It’s Mothers Day and there is something out there for all of you! I hope that all your Hallmark wishes are NRA compliant and that you get the ammo of your dreams. For me, I am going back to the “Steals and Deals” - for Mommas who love to shop. I may not be America’s Most Favorite Mom, but I am a retailer’s perfect dream!

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According to a recent Junta42/BtoB Magazine study, almost 30% of businesses marketing budgets are allocated to their own content. That means, instead of creating an advertisement that runs along side traditional media, businesses are developing and executing their own content, essentially being their own media.

Can I hear an Amen?

Look, there will always be interruption-style marketing, or what a recent BusinessWeek calls “attention-deficit” advertising. According to the article, “Marketers, only too aware that consumers are ignoring traditional ads, have adopted the ‘more is more’ approach and have begun advertising everywhere – in taxis, fitness clubs, and hospital waiting rooms.”
This will never stop. Some people will self-choose to become walking billboards and, outside of corporate design standards, some locales will look like Times Square on steroids. As long as there is product to sell, this will never stop.

But there is another way, a “higher road” per say, which business marketers are starting to get. 30% of a marketing budget is a huge number. Businesses are beginning to understand that the creation of valuable, relevant and compelling content may, ultimately, be the best way to drive long-term revenues and profits.

Let’s get this straight: Businesses don’t create their own educational content to be nice, they do it to make money.  The creation of content marketing within an organization may be one of those few areas where doing the “right” thing for your customers actually makes you more money (Toyota Prius and Waterfree urinals come to mind).

Why Now?

Even though the art of content marketing and custom publishing has been going on since the dawn of time (but formally recognized when John Deere launched their customer newsletter to farmers, The Furrow, in 1896), some media-types overlook why content marketing is beginning to skyrocket.

It all has to do with consumer control. Because of technological advances, today’s consumer (your customer) can control everything they engage in. In the past, consumers were “forced” to watch television commercials. TiVo proved this wasn’t a necessity. In the past, access to content was relegated to the elite few who had subscriptions to media sources. Google has democratized content to such a degree that literally anyone can find everything from anywhere in the world.

Today’s buyers engage with advertising when they choose to. The marketer has lost any and all control they might have had in the past. Without control, what’s a marketer to do?
From this perspective, the solution is easy: As a business, if my customers are going to ignore my ads, I must deliver them valuable content so they pay attention to me. This is the reason why 30% is just a starting point. In less than five years, it may be 50%…possibly more.

Exciting Times

If half or more of marketing budgets are dedicated to custom content, one thing is inevitable: the quality of content will continue to increase. Corporate content, in order to get the attention of customers, must be as good as or better than any content you’d find in mainstream or trade media.

Hard to fathom? Not really. We are still fighting for our customer’s attention, but instead of annoying them with a million unwanted messages a day, we’ll be strategically targeting an important piece of content, at the appropriate time, that makes the customer more intelligent, or makes their lives easier in some way.
In order to accomplish this task, businesses will reach out to the best journalists and publishers from around the world, from local to global, to help them deliver a valuable message to their customers. There may never be a better time to be a writer than right now. Forget being the chief editor of the Wall Street Journal, go to Microsoft, Cisco or P&G.
Exciting time indeed. Prepare the way.

Joe Pulizzi is founder and chief content officer for Junta42. Junta42’s Match product is a free resource for marketing professionals to help them find pre-qualified content marketing assistance. Read more of Joe at http://blog.junta42.com/.

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Folio just reported on a recent Magazine Day where there was much conversation about the future of magazines (Magazines 3.0) and print in general. The drum beat of bad news for the traditional print business has been steady as consumer eyeballs and marketing dollars migrate to events (live and interactive) and online (e.g., Web sites, video, social networking, etc.)

I was really struck by the juxtaposition of quotes coming from the conference. John Griffin, Chairman of the Magazine Publishers of America (and group President of National Geographic) is trying to put a positive spin on it, but he seems to be fighting a losing battle. He is hoping to be able to deliver faster “audience metrics” to compete with online and TV. Huh? How is getting MRI and ad readership scores quicker going to help compete against the web? There will never be a real and tangible way to tie a print ad in a publication like National Geo (with close and materials deadlines a month ahead of publication) to any measurable return – that fact is driving the migration of advertisers away from print media.

However, that is only one issue responsible for the decline of print media. The other is also mentioned in the Folio article. There are still existing hard walls between edit and sales in American print media. Check these quotes out:

“Advertisers want to borrow—or steal—the credibility and authority we have with our readers,” Griffin said. “And we want to give it to them” without threatening the credibility and authority, he said. “[At National Geographic] we’re always asking ‘How far can we go with this?’ It’s a contestant internal struggle.”

“It’s the single biggest point of contention within our company,” said Deidre Depke, Newsweek.com’s assistant managing editor. “The only editorial asset our magazine has is its content—for us to abandon that, and let advertisers do what they want with it, would be a big mistake.”

In sum: there is a holier than thou streak that runs though these companies and publications that goes beyond what is really necessary and required by consumers. But read this quote – it is excellent, and I think sums up how many marketers/advertisers feel today.

“[The line] has been self-governed and self-policed—you’ve put the handcuffs on yourselves,” Steve Sturm, group VP of strategic research and planning at Toyota Motor North America said. “The federal government, the state government, they haven’t told you to do it. You put up all these roadblocks” that other media don’t have. And a younger generation of potential readers, he said, “don’t play by the same rules you play by.”

Dead on. One of the things that I learned in doing dozens of reader focus groups and readership studies is that the readers don’t care nearly as much about the actual brand name of the content as the editors would like to think they do. Consumers just want good honest, credible and accurate content that helps them in some way or to enjoy for entertainment. No one cares about all the editorial awards or devotion to “church and state”. It’s all about leads, ROI and moving product for the savvy marketer, not having their ad appear across from “pure” award winning editorial. Think about American Idol – it is essentially a commercial for Ford, Coke, AT&T and iTunes wrapped in a talent show. It is a brilliant marriage of content and sponsorship. Consumers get content they love, and marketers get a private media channel for their brands.

Today’s consumer, of all ages, is extremely media savvy and knowing. They can tell the difference between marketing messages and content. Editors need to give the consumer more credit for understanding the dynamic between marketing and content. The prevalence of corporate sponsorships, product placement, content relevant Web ads and custom media have made consumers come to expect marketing messages and content together in one package. In fact, I would argue they find it more valuable.

A magazine’s key asset is its database and the relationship with the people in that database. That is what they should be leveraging to compete. Marketers are tired of renting media channels in print publications when they can own their custom media channels using original content and targeted content delivery. Print can still be a valuable marketing tool when used as part of a private media solution that provides value for the reader and targeted messaging for the marketer.

As Steve Sturm mentions, younger consumers have a whole different perception of media and content. Magazine publishers are going to have to make some hard decisions and quickly. The old way of doing business is gone forever.

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Last week I wrote about Starbuck’s attempt to reach out to customers and prospects for constructive feedback and new product ideas.  In Tuesday’s Boston Globe they ran an insert (with attached card, see below) that made the following offer: Come in to Starbucks on Wednesday’s for the next six weeks, and receive a free tall Pike Place Roast coffee.  Pike Place Roast is their new smoother blend that was requested by many of the suggestions on the site.  It is a great tactic to use custom media to get new and lapsed customers into stores and try their new coffee.  I have to believe this promotion was focused at people like me who prefer the taste of Dunkin Donuts and do not regularly shop at Starbucks. Six weeks of free coffee can get someone hooked and make a stop at Starbucks part of their regular routine.  Most importantly, it gets the product into people’s hands.  All the “branding” and expensive TV ads in the world can’t guarantee that.

In the interest of marketing science I went to my local Starbucks yesterday morning to test their offer and taste the new blend.  It was the typical Starbucks experience with lots of earnest, serious people sitting around with no particular place to go at 8:30am on a week day.  I strode up to the baristas and ordered my tall Pike Place Roast and flashed my card.  I guess the card identified me a newbie since my barista felt compelled to thoughtfully point out that “tall” means “small”.  It was probably the best coffee I ever had at Starbucks, not as good as Dunkin Donuts, but much improved. 

It is interesting to see their private media channel come full circle from soliciting advice from their customers to putting a program in place to put their words into action.  I will give it a shot the next few weeks and let them try and convert me.  Maybe some day I will actually know what Venti means.

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Starbucks has been getting beaten up this year and faces tough competition from Dunkin Donuts. Even McDonalds is taking a run at them.  One of the ways they chose to respond is a great lesson in listening to your customer and embracing a private custom media channel.  For many companies the knee jerk, old school reaction would have been to launch a “branding” campaign or hire a celebrity pitch person.  Instead Starbucks did something very cool – they launched My Starbucks Idea web site.  The purpose of the site is to ask their loyal customers what they could do to improve the product and service.  I would encourage you to go to the site and read the both the volume and passion of the responses.  The site is powered by salesforce.com and they did a similar site for Dell.  Interesting, Dell and Starbucks have a lot in common – both were innovative companies who used to be the fresh up-and-comers, and once they got too big; they lost touch with what made them great.

I commend both companies for creating a private media channel to have a two way dialog with their customers.  This kind of forum gives customers a place to vent, and make suggestion.  Read through some of them – they are not only thoughtful, but smart.  A lot of companies give lip service to listening to their customer, but how many actually do and act on it?  More than ever, people in the executive suite are isolated from their customers, where they are a long way from their middle class American customers and prospects.  Also, since they only talk to other execs, they get caught in an infinite loop of their own B.S.  How many meetings have you been in where sales and marketing people sit around pitching each other and not taking in outside information?  Happens all the time and the result: the ads we see on TV and in magazines are completely off target.

What I really like about the site is the “Ideas in Action” section where Starbuck employees respond in their own words and tell customers what action they will take based on customer suggestions.  This is powerful because many times when you write to a web site, you get an automated response which is sometimes worse than getting none at all.  I have to admit I have never been a big Starbucks fan – the coffee is too harsh and I can’t stand the ordering process.  It was fun to see that many others feel the way I do.  As a result, they are introducing a “smoother” coffee and talking about an express line for impatient people like me who just want a regular coffee; and don’t want to stand behind a line of people ordering complicated permutations of coffee beans, milk (cow or soy) and odd flavors.

Now, let’s see if they take this process one step further.  They have collected scores of contact names and been given the “permission” to talk to them about Starbucks.  I would suggest starting a real Starbucks private custom media channel to their customers using content marketing to further strengthen the bond between them and their customers.  This approach could get Starbucks back on track and make the brand fresh again.  Meanwhile, I can’t wait for the first express line open. 

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I love Whole Foods as does my “mom” posse - every time I go to the store, I run into lots of Moms I know.  And, we all have at least five grocery stores to choose from that are closer than Whole Foods (WF).   We are not driving out of our way because we are going to save money. Whole Foods definitely skews to the expensive side of the super market spectrum, even for the “healthy” category. So why are we all so loyal to WF during these challenging economic times?

I was curious enough that I posed this question to my friends: “What makes you drive an extra 20 minutes to a market that clearly charges a premium?” Across the board the first response was perceived quality of the products but it was the next strongest responses that I found interesting as a custom media marketer.

As a community, moms pride themselves on making smart choices for their families. The responsibility for making healthy food choices falls squarely on our shoulders. We want our children to learn good eating habits and help them to make good decisions even when we aren’t there. Whole Foods enables Moms to do their jobs better. The store is packed with information about the foods themselves as well as the brands. The content can include health benefits, cooking tips and serving suggestions. Most of my friends commented that they spend more time in WF compared to other stores because they are busy reading about each special item as well as health news and updates. They learn something every time they go shopping. This is a classic example of content-based marketing to attract and retain customers. The use of informative information we can use makes us more likely to shop at WF, and likely increases the amount we spend per shopping trip. In addition, customers are invited to sign up for fl@vors  to receive special offers, recipes and food education. This is a great customer affinity newsletter that aims to get more business out of current customers. 

However, the biggest differentiator vs. traditional markets for the moms is the live informational events. I am not talking “try the salsa and smoked sausage on at toothpick in the aisle” kind of event our moms experienced. We’re talking sushi making classes; kids cooking lessons; cooking demos and book signings; quick and healthy meal classes; you name it! There are events and classes at WF just about every week. Mom friends sign up together and it becomes a big girl play date. Some of them are in-store, some of them are via sponsorships of local community events which cannot be undervalued. (Giving back in these times is not only responsible, it is mandatory.)  This is a very smart use of live events as custom media to strength the bond between store and customer. Whatever the venue, WF has carved as niche as a destination that plays a critical role in our lives.
Positive and fun interactions with the brand reinforce why we are willing to drive farther and spend more. But overwhelmingly, my own little straw poll indicated that the informative content kept us coming back. It is a competitive world out there and creating a dialog and educating the customer can help move products off the shelves, even the most expensive products. I am guessing that there are other retailers out there that could take a page from the WF marketing book: educate the customer with content-based marketing, engage them with live event and watch the bottom line grow.

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Last month I became a member of a somewhat exclusive club which is unusual for me since I have avoided joining anything for most of my life.  You name it – frats, the Elks, Shriners, Freemasons, religions, community groups – no matter the club; I was not your man.

After thinking about it for years, I took the plunge and leased a Mercedes-Benz.  I went to my local dealer on President’s Day weekend dressed like a slob and was clearly only interested in the cheapest model they produce – the C300.  However, from the minute I walked into the dealer, I was treated with respect and like I was someone important.  The sales manager greeted me warmly and made sure I was with a sales person as quickly as possible.  He kept apologizing for the wait which was no more than five minutes.

I purchased 6 cars before this one and each transaction was confrontational and unpleasant.  It was the same drill we have all been through – the pressure to buy today – and the old “What is going to take to for you to buy a car today”.  And of course, the Oz-like sales manager/business manager who is kept in back office and is in charge of closing and the final price.  His purpose is to intimate you into buying now.  The whole experience is usually horrible and you never want to go back.  My father-in-law once punched a guy who would not give him back the keys to the car he was considering trading in.

The people at my dealership worked hard with me to come up with a deal that worked for me.  My sales person patiently explored all options with me in terms of down payment, mileage etc.  I took a test drive and was incredibly impressed with the car and the knowledge of my sales person, who happened to be German – how cool is that.  The business manager was also helpful and closed the deal by giving me a credit for the two payments I had on my existing lease.  At no point did I feel pressured or harassed into buying

What I found interesting was in the sales pitch and all the conversations there was a subtle but strong theme.  From the moment I walked into the dealership they viewed me as a possible life time customer, not a one time deal to make a monthly quota.  There was a lot of talk about “joining the club” how I have earned this car/status symbol. Part of being in the club means I can come by any time for a free car wash, or call for a Mercedes service call anywhere in the US. 

After I signed my agreement, the sales manager who first greeted me came over, shook my hand and put his arm around my shoulder to welcome me and offer his congratulation for “arriving”.  It all sounds corny, but it worked for this cynical guy.

When you think about it there is no difference between a Kia and Mercedes in the respect they both get you from point A to B.  To sell a premium price car you must sell more than basic transportation.  Additionally, the high price point means there is a limited amount of buyers and lots of competition for their dollars.  All the expensive broadcast and print ads in the world can’t duplicate the experience I received when buying my car.  Your next best customer is always your current customer.  Check back with me in three years, but the odds are high I’ll be staying in the club.

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