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Web 2.0 Dough
In addition to having a roster bursting with Web 2.0 clients, my company also works with a lot of large companies who are trying to get their arms around Web 2.0. You would be absolutely stunned at how many of these titans are clueless about how to respond to the Web 2.0 tsunami. Unfortunately, their marketing people continue to come to work and approach marketing the way they have year after year, in spite of the fact that the world has changed and Web 2.0 is the new ruler. They work within their comfort zone that is usually framed by traditional marketing.
One of the excuses I hear over and over is that they don’t have any budget for Web 2.0 initiatives. They hide behind this statement as a means of deflecting from the real issue which is that they wouldn’t know what Web 2.0 is if it came up and bit them in the…’er…well you know where I’m going with this. Most of these employees are good people trying to do the best they can on behalf of their company. Many are just paralyzed by the “Web 2.0 fear factor” of not even knowing where to begin. The truth is they really don’t know how they would fund any Web 2.0 programs from their already shrinking marketing budget.
When working with a titan-like client who has this budgeting perspective, my “Web 2.0 Dough” advice is always the same. Web 2.0 should not require any incremental budget. Period. The company should look at its existing marketing budget and reallocate a percentage away from traditional marketing programs and towards Web 2.0 programs. For the companies whose cultures are slow to change, I suggest the percentage of budget redirection be small but meaningful. I encourage people to just go ankle deep in the Web 2.0 pool. What normally happens is once they have seen the ROI on the spend, they are quick to want to move more towards the deep end of the pool. Measurable results are a great way to get the whole company to join the Web 2.0 pool party. It’s also funny to see how that marketing person (from marketing managers to CMOs) goes from being Web 2.0 oblivious to suddenly becoming the Web 2.0 guru within his/her company.
What’s your experience with budgeting for Web 2.0 marketing initiatives?
May 19th, 2008 at 2:14 pm
This is a cautionary tale from a Web 2.0 business about expectations related to delivering ROI and future work. Several years ago YourStorys delivered a series of testimonial videos for a company in the infertility industry. The company is an industry leader, and as such, wanted to use the newest technology to show what they can do for those with infertility issues. We shot and delivered 2 very compelling videos from couples who had used the companies services successfully. The COO of the company raved about how many hits the company was receiving and did a testimonial for our services.
In this testimonial he explained about how the company first thought the services were too expensive. He went on to explain they got full ROI in a little over 3 months. I was thrilled to hear that tale and used it in our marketing.
Three years later they have yet to update the work. Their agency has directed them into costly mid day radio spots, rather than doing more video for their website. I think the point here is that it will take a while for even the enlightened to move from one mode of communications to another. While we think people get it, and they may, they still will rely on what others are doing.
Lead the way, Kel and others will follow.
May 19th, 2008 at 3:19 pm
larry, that is so pathetic. i am not surprised to hear a traditional agency is pushing traditional initiatives — and radio of all things! their success will be short lived because i firmly believe traditional agencies are walking the same death march as traditional media. clients will soon be eating the web 2.0 dog food and washing it down with web 2.0 koolaid. ken olsen at digital equipment couldn’t stop the mass adoption of personal computers and traditional agencies will never be able to stop the “power to the people” tsunami of web 2.0. sing it loud…sing it proud!
October 15th, 2008 at 8:17 pm
Yeah, what you said. Traditional agencies like the one that I was working for that went under because of their inability to embrace current marketing strategies (ie. web 2.0).
This is the same agency that had their design workhorse working on a first gen Mac G3, no joke. Remember Jazz drives? That was the primary form of saving files.
I should have known when the principals had difficulty utilizing email. Regardless, as it is important for the company seeking appropriate PR, so is it appropriate for the agency to be up to speed in order to provide the best service.
That’s why companies like Kel & Partners are so exciting and inspiring to interact with. Thanks for post. Keep up the good work.
October 16th, 2008 at 4:11 pm
lbrown, wow you really blew the cobwebs in my memory! jazz drive…memba that? crazy stuff. it’s amazing how quickly things change. i breathe the change in like oxygen. sounds like your old company treated it like smoke and fanned it away. thanks for the kind words. hope to see other posts from you in the future.