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Traditional media businesses run on profits.
Unfortunately, in the digital world that can be disadvantage. When you have not only employees to pay, but loyal audiences and advertisers to keep happy, you’re going to be less aggressive than digital upstarts whose profitability is years ahead, if ever.
However, media incumbents can do a much better job than they’re doing. Here are some ways to make that happen:
Let me give you some advice…
In the fast moving, hypercompetitive inflection point that is business today, only the strong will survive. You need to get with the program or get eaten alive.
There are a lot of metaphor mixing, self proclaimed gurus out there to guide your way. You can do yourself a world of good by listening to what they have to say and then doing the opposite.
Here are six ways to spot them:
Forrester is a leader in technology research. They got that way by providing hard data and objective analysis to business leaders for over two decades. As I’ve written about before, brands are built on trust and, for the most part, Forrester has earned it.
That’s why I was so disheartened when I saw a Forrester report made available on LinkedIn a while back. What I found was a noxious blend of shoddy methodology and inane conclusions that were reminiscent of the Arthur Anderson – Enron debacle.
As many people know, and as James Surowiecki chronicled in his famous book, The Wisdom of Crowds, large numbers of ordinary people can often outperform experts. Lately, though, the idea has mushroomed into excessive enthusiasm for crowds.
Terms like open source and crowdsourcing have entered the lexicon and formed fanatically engaged advocates. There have also been impressive successes, like the Firefox internet browser the Apache web server project. However, much like people, crowds can be foolish as well as wise.
Ad agency services are procured as if they were a commodity. Is there any way out?
Unlike other professional services, ad agencies are constantly under price pressure. Consequently, shrinking margins have led to intense consolidation. The industry today is dominated by a handful of vast holding companies that offer every service imaginable, yet still struggle with profitability.
In a hypercompetitive, globalized world, a strong brand is essential for profitability. If you want your business to enjoy premium pricing, lower customer acquisition costs and big fat margins, brand equity is the best (legal) way to do it.
Building a powerful brand isn’t easy by a long shot, but there are some key principles that can guide you on your way.
Do you see digital technology as an opportunity or a threat?
Digital technology can be both a blessing and a curse. While the new possibilities are fantastic and great efficiencies can be gained, organizations often need to be restructured in order to take advantage of them.
Finding the right digital structure can be confusing. The key is to understand what role new technology is to play in your business. Sometimes we use digital technology to make us more efficient and sometimes we use it to create value. It’s very hard to do both.
Are you talking to the right person?
Business development people often try to improve their sales prospects by approaching the “decision maker.” Usually this means “going straight to the top” and speaking directly to the “man in charge.” Why waste time with underlings and formalities?
In reality, this is rarely successful and usually does more harm than good. Not only is the so called “decision maker” unlikely to be sold, a clumsy approach is very likely to poison the well and decrease the likelihood of an eventual sale.
Why are the Mad Men so mad?
The marketing world is changing as never before. The backslapping, clubby culture of Madison Ave. is being transformed in a world of bytes, databases and algorithms that is increasingly ruled by geeks rather than suits.
The old order is gone but the new order has yet to arrive. The fate of marketing services companies is still an open question.
What’s the difference between a great brand and a silly slogan?
A powerful brand is incredibly valuable. Interbrand estimates that a successful brand can be worth tens of billions of dollars. That’s far too much money to be attributed to nice words or cool colors. What makes a brand valuable is the promises it makes and keeps.
Here are some examples of great brands that win through making and keeping their promises.
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