Top 8 tech terms marketers love to hate.

Nothing rankles the ire of any marketer with even a tad of experience more than those highly touted “new” tech terms or concepts positioned as silver bullet answers to, heretofore unsolved, marketing   problems. And to those of us who’ve been around the marketing block a few times, these new terms resemble a toddler’s early attempts at speech – cute but a phase they’ll grow out of. depression

Unfortunately, though, some of these usually harmless little word experiments “stick;” taking on a larger-than-life meaning that does a disservice to everyone.  My plain hope here is to put these concepts into context so they can be practically applied in the day-in-day-out business of marketing.

1. White labeling:

The history: It started life decades ago in the tech world referring to the practice of re-branding 3rd party technology as your own so it can be resold at a higher price.  This was worked well for many tech platforms like CRM or email service providers because the “resellers” were often system integrators or tech companies themselves.

The impact: When the practice began to be applied to the marketing industry, i.e. an agency white labeling a tech platform, it translated poorly because a marketing company is poorly skilled to take on the management of a tech platform.

Why I hate the term: The term shines a spotlight on the bigger disconnect between the business models of tech platforms versus advertisers/ agencies. White labeling is no solution for anyone; agencies have to fake it, tech companies get no credit for their innovation and brands are sold “black boxes” – a sure recipe for problems down the road.

2. Native ads:

The history: This term was recently coined by Fred Wilson in 2011 as “native internet marketing model” and “native monetization systems” (Fred Wilson’s 2011 talk on this topic). This concept was picked up by a social media tech platform and morphed into meaning advertising that’s consistent (a.k.a. native) with the environment around it.

The impact: If only Fred had asked any marketer, he’d have learned we had a term for that concept; alternatively called advertorials (1980s), sponsored content (1990s) or custom content (2000s). And just like in years past, the trust issue about separation of “content church” and “advertising state” plagues the effectiveness of today’s “native ads.”

Why I hate the term: Tech platforms can push demographically accurate “native advertising” but that doesn’t make it trusted advertising, (disclosures notwithstanding). Experienced marketers know that advertising that is not trusted is not worth doing. Tech ventures are climbing that steep learning curve.

3. Growth hacker:

The history: Somehow this term evolved as an awkward mash-up of the terms “hacking,” the ability to use tech wits to achieve results usually at “low/ no cost,” and “marketing growth.”

Ugh! This pairing spawned a Frankenstein child capable only of crude brute tech force that is ultimately unfit for the delicate business of marketing.

The impact: I don’t think anyone has a real clue what a growth hacker really is. I do know that anyone who is actually hiring marketing folks snickers at the phrase.

Why I hate the term: Some things seem obvious and yet require saying nonetheless. For the record, no marketer wakes one day to say; “Let me spend the most money possible to create the least result possible.” Marketing is about getting the most bang for the least buck.  That’s not “growth hacking” – that’s the marketer’s job description.

4. MVP (Minimum Viable Product):

The history: The “when to ship” decision remains probably one of the most excruciating decisions every tech CEO must make. Investors, eager to reduce their risk, push CEOs to ship the least offensive product possible a.k.a. the MVP (Minimum Viable Product).

And they’re not kidding when describing it as “minimum viable.” This virtually guarantees that almost immediately, iterations are needed to adapt to market feedback. Problem is, in this context, MVP and the “iteration” model (deserving a place on this list in its own right) fails marketing practitioners.

The impact: The MVP problem lies in the fact that a constantly “iterating” marketing platform can mess up the very delicate and time consuming sales conversion process with just a single interruptive interstitial here or badly retargeting ad there.

Why I hate the term: MVP encourages a UE race to the bottom with more and more users getting more and more frustrated. Worse, it seems the MVP concept has become a “get out of jail free” card to excuse a tech platform’s particularly bad results or awkward UE. “Iterations” offer little salvation, actually exacerbating the problem (more on that below).

5. Iteration:

The history: Software development is a process of creating, testing, fixing, testing, fixing a.k.a. iterations. This “agile” process has evolved over the years but it is always based on some machine-based process of trial and error.

The impact: While machines are great at handling iteration – people aren’t. Making continual changes or iterations to a marketing platform is fraught with possible bad user experiences that can blow any marketing proforma out of the water.

Why I hate the term: Iterations have become so pervasive in an MVP world, it is virtually impossible for marketers to keep up. Facebook alone is planning an “iteration” of six ad products in the next few weeks. Iteration is chaos for marketers.

6. Earned media

The history: This term does not have its origins in tech but in PR where it referred to the additional “earned” or free media a story got. This additional “free” media coverage was in direct contrast to “paid” media coverage.

But sometime in the last 5 years, the term was co-opted by the tech world and linked to social media with unintended but harmful consequences.

The impact: The damage was done in talking about “social media” as being able to generate “earned media” – setting up the dangerous expectation that social media is free or cheap just like “earned media.”

Why I hate the term:  Any marketing practitioner knows it takes lots of time and hard work to get social media to work properly. That is not free or even cheap. The mythical “earned media” beast creates false expectations that are hard to overcome.

7. Impressions:

The history: In the old days, it was relatively easy to estimate the number of people an ad campaign would reach given the limited number of outlets; TV, magazine, radio and even movies. This diverse yet limited media was measured in terms of standard “impressions” easily translatable to a real-world audience number.

The impact:  Theuse of impressions worked with traditional media because of its tangible audience delivery numbers but it fails in today’s digital landscape that is capable of serving billions of impressions but incapable of telling us how many people were actually reached.

Why I hate the term: This term, more than any, IMHO is the root cause of a system-wide loss of trust between agencies and tech platforms; advertisers and publisher audience numbers; consumers and advertisers. This epic trust failure explains the steep decline in all forms of digital advertising interactions.

8. Engagement:

The history: The term was long used to describe great creative because it was “engaging.” Later, sometime in the 1990’s, it was applied more specifically to direct marketing because of its ability to precisely measure direct response engagement (i.e. – email or banner ads).

The impact: It’s rather humorous to watch marketing tech platforms gush about engagement as though it just hatched from the brain of the clever tech set. That would be benign enough except that a tech platform’s idea of engagement is a herky jerky set of user “twitches” and clicks instead of the elegant dance that a great engagement experience can become.

Why I hate the term: Technologists’ slavish devotion to engagement is rather shallow; lacking in the nuance to understand the profound ROI difference between just an “interaction” and true “engagement.”

The marketing tech industry is trying to respond to the continued stream of bad news of plummeting digital ad response rates. At its heart, I believe the challenges stem from the lack of connectedness between technologists’ capabilities and marketers’ requirements. Language can be a bridge connecting technology with the business of marketing. Only then can we begin to unleash all the potential.

The world according to algorithms

I wrote this post over three years ago! Gosh – kinda of more scary now. Yikes.

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My personal, trusted search agent, my husband, cut out an article for me about DemandMedia, an innovator in offering a service for web owners to pull algorithm driven, highly moentizable content – fast and cheap.

Then a few minutes later I read about Cheaptweet.com and how it uses an algorithm to mine Twitter feeds for deals on clothes, electronics and services.

I began to notice a pattern.

The next day I read about new search methods that were smarter because of, you guessed it, algorithmic technology.

Now with a thud, I realized, a bit to my horror, that algorithmic logic drives a big part of our lives. It drives our searches and, as a result, what we learn about. It drives which ads we see and crunches through a formula to present us with the most relevant, contextual based ad possible. It filters what offers we see or don’t see online.  And the ever iterative algorithmic engines can even choose our future mates.

I even think some algorithm predicted the end of the world to happen sometime in 2012 *sigh*.

It then blindingly dawned on me (better late than never) that my perception of the world was being shaped by algorithms – aggregation of data points. I was taken aback by the fact that my world perception was not formed as I thought by my experiences with real people – but by mechanical machines spitting out numerical answers to questions I had not yet asked.

I realize I see the world through number colored lens. I am not sure I like the effect.

This shouldn’t be bothering me – but it does.

Judy Shapiro

http://twitter.com/judyshapiro

The Surprised Entrepreneur turns Rebel Entrepreneur

What makes a rebel.

What makes a rebel.

“Judy,” a sweet tech project manager said to me recently after I discussed some of the gaps in the social marketing ecosystem “You are on a crusade.”

I didn’t see that one coming so it stopped me dead in my tracks. What crusade was that I wondered? I probed but she dodged answering me. The word crusade is laden with meaning so it stuck with me – what had I said to give her that impression?

In hindsight it seems obvious but in the moment, I was oblivious to the shift in my thinking from simply being a Surprised Entrepreneur (as I posted here) to becoming a Rebel Entrepreneur.

My cause was simple – to put the human element back into the business of marketing that has been platform’d to a near digital death. I am driven to re-infuse marketing with the sense of wonder, joy and creativity that I had the good fortune to revel in during my earlier career days.

In those ancient days (one generation after Mad Men but before the Internet revolution had really hit) we could put hearts into our work because there were few tools or platforms or technologies to guide the work. It was pure creativity and smarts. It was hard to measure the effectiveness of the much of the work but you knew your work made a difference when the company did better – jobs were created and bonuses were happily doled out.

Over the years, technology improved how we deployed marketing but we continued to be driven by our nobler motivations to create great marketing that improved people’s lives. We knew we could make a difference.

But there’s been a shift in the industry over the past 3 years. Marketing, especially social marketing has become a tech-heavy exercise of manipulating retargeting platforms, or reward systems or algorithmically based big data platforms. Social marketing is reduced to a conversation about content syndication or sentiment analysis.

So it’s no surprise that over that period of time, inextricably, I have seen tech and platforms taking the joy and the nobility out of the system. I have become overwhelmed by the supremacy of marketing platforms over serving people and algorithms over inspiration.

My sense of alarm was quite publicly aired in the digital pages of Ad Age and Huffington Post. I ranted at Facebook when I felt defeated at using Facebook productively. I admitted frustration at the black-box techno-jargon wave that swept over us marketers drowning us in confusion. I’ve even had the chutzpah to question the funding strategies of VCs who are basing their investments on marketing principles that simply don’t apply anymore. But mostly I challenged the 20 something CEOs who created marketing platforms that are long on cool but short on practical application for real marketers.

In the process, I have been:

  • Flamed by Macboys and called a hack (look up “Judy Shapiro” and “mac security”)
  • Accused of being techno-phobic and capable of only kitchen related work, ideally pregnant at the same time thus preventing me from ever writing offending articles ever again
  • Tarred and feathered as an “old line” marketer unable to keep up with the iteration savvy tech guys
  • Harangued for questioning if the “Content as king” model was sustainable
  • And very nearly digitally lynched when I first suggested in 2010 that perhaps Facebook had jumped the shark.

And so against all odds – here I am, founder and CEO of a social tech company, readying the BETA launch of our new network called Eden for Q1.

Against all odds, this little venture that started a year ago will be introducing a different type of social marketing framework that is a based on an “opt-in” paradigm. We are going up against the big “push based” social marketing platforms and networks. It is an uphill but noble fight. In our vision, Eden is a place where users control the action – how they see content or which brands they interact with. It is a reversal of the; “It is our platform so you have to play by our ever-changing rules” social network that dominates social marketing today.

Against all odds, we managed to secure funding including from an early stage VC for which we are eternally grateful. We’ve created relationships with agencies ready to sell Eden to their clients and we’ve sealed meaningful partnerships that help us gain access to the highest levels within publishing and brands.

Against all odds, as one woman in her 50’s, I am privileged to be joined by a community of seasoned marketers to help in this crusade. Our collective goal is to right the marketing ship listing dangerously to one side from the weight of platforms and big data. I can’t express my gratitude to this brave league of fellow crusaders other than to give them full credit for their invaluable role in our noble adventure. I give them a place of honor in our company’s history:

  • Peter Hubbell, CEO of BoomAgers and former Saatchi Board member. www.boomagers.com
  • Griffin Stenger, a founding partner of Concept Farm, a leading social marketing agency [Crain’s]. www.conceptfarm.com
  • Robyn Streisand, Founder and CEO of The Mixx Group – a branding agency and an early investor in engageSimply. www.themixxnyc.com.
  • David Hoffman whose career spans four decades as a film producer and corporate strategic communicator. Wikipedia’s simply calls David: “One of America’s veteran documentary filmmakers.” http://en.wikipedia.org/wiki/David_Hoffman;
  • John Bowman, was Exec VP Strategy at Saatchi working on their premier brands and is now authoring a book about his great Grandfather, Archibald Stark Van Orden http://theassassinsassassin.com/about/
  • George Collins, a long time database expert and CEO of Research & Response – a database management consultancy. http://www.rresp.com/
  • Mark Bonchek, Founder of Orbit + Co whose strategic consultancy is “creating a new direction in business by shifting the relationship of individuals and institutions from PUSH to PULL.” http://www.thinkorbit.com/

Against the odds, I have been able to attract a seasoned management team of  marketing practitioners who had to “build it” after the consultants talked about loving it but conveniently left when the real work began. They were the ones who built those first generation eCommerce sites and created the principles that good UE designers use today. Our journalists understand SEO and our artists are offering their images for free all in an effort to be a part in the creation of an alternate social marketing reality – a fresh start called Eden.

So against all odds, I find I have become a Rebel Entrepreneur – so strange especially given my training, temperament and age. The potential high rewards of being a rebel all too often comes at a high price and we’ve seen our share of deals gone bad, betrayal by trusted colleagues and funding plans gone awry (Sandy was devastating to the startup community).

And yet, despite the odds, we are close to the launch of our network.

So I invite you all over to Bit Rebel to experience this journey with us as we sprint to Eden’s launch in Q1. Celebrate our highs and feel the unnatural lows that are endemic to startups. Share our anxiety as our burn rate increases but our funding outlook seems further out (we are doing a second round of seed funding now). Take a peek behind the startup curtain, see what’s really going on and help shape what happens. The success of Eden will be a triumph of us marketing practitioners like web designers, SEO geeks and developers over algorithmic feats of IP muscle.

Our mission is noble and our cause true.  Come join us.

I guess like any good crusade, we need a flag and a manifesto. Stay tuned – I am just learning how to be a rebel. Kinda of exhilarating actually. But

Judy Shapiro

P.S. My rebellion gets its own website: http://judyshapiro.wix.com/rebel-entreprenuer. Viva Le Rebellion.    

The essence of business complexity expressed in pictures

This is the MOST accurate, intelligent, comprehensive explanation of why big companies manage to mess up great ideas time and time again. Pure genius.

The surprised entrepreneur – I’m having the time of my life.

I am not sure what I expected to be doing at this point in my career. I have been blessed to have been at the center of the changing, blossoming technology landscape of the last 20+ years.  My earliest days were at an advertising agency called NW Ayer which gave me a broad perspective on Corporate America’s practices, problems and possibilities for triumph. I then gracefully made my way into the tech stars of Corporate America itself with stints at AT&T, Bell Labs, Lucent Technologies and Computer Associates. I also had the great good fortune of working at small innovative technology companies led by visionary innovative leaders. Two prime examples include Melih Abdulhayoglu, CEO of Comodo and Jason Katz, CEO of Paltalk.

This unusual combination of corporate marketing experience coupled with the feet on the streets training born of working at tech startups, gave me a balanced perspective of how the marketing business is evolving in this technology driven world.

So here we are.

The marketing business is going through a fundamental shift that throws into question almost every tactical practice built over the last 20 years. And, amazingly, it seems that just as marketing becomes this new discipline that weaves creativity into an interactive user experience that is tech heavy – it’s a perfect fit for my peculiar type of networking meets technology marketer experience.  

This seems nothing short of extraordinary. Which is why I am all the more stunned at the work I am doing today. I had not planned on any such seismic move in marketing, so I certainly did not plan on launching a marketing tech venture.

But here I am.

My journey has been one of surprising excitement at the possibilities in marketing excellence that was simply not possible before. The vision of this venture, therefore, is to take advantage of these new trends to deliver a sustainable and productive “marketing machine” (a phrase I attribute to Melih) that can turn the tables on how marketing gets done.

In our vision, we don’t approach monetization like Google or Facebook’s who are about pushing more accurate marketing messages to consumers. We are looking to deliver a marketing platform that lets consumers decide what content they see, what ads they see, how their social networks are managed, how they conduct commerce, even how they communicate within the social networks. The organizing principle for this platform is not ad-driven monetization but oriented around Judy Consumer. Our vision is to create the kind of system that we want to live with for the next 10 years . In effect, we want to give Judy Consumer the tech power to create her own personal “Trust Web.”

To the few friends we have shared our vision with – all have come to a similar conclusion – it is an ambitious (maybe too ambitious) vision. They are correct. But as I entered marketing in the 1980s most of marketing at first was human powered with marketing systems emerging later on.  

And here we are – again.

This next generation collection of marketing technologies is rich in creativity but is not organized for sustainable marketing programs for brands. This is work that I, among others, are focused on – creating v1.0 systems to operationalize the business of social marketing.  

We are all at just at the beginning of this journey and it’s a journey I didn’t expect to be taking at this point.

But here I am – and much to my surprise – I am having the time of my life.

Judy Shapiro

Is it possible for agencies to embrace marketing “complexity”?

The ad business is going through a change not seen in 3 decades.

For 3 decades there were three chairs at the marketing table — agencies, brands and the media. All 3 parts technologically evolved in a symbiotic “one:many” model to grow the business. Agencies “produced once and ran many times”; brands (one) had a message to get out to many and each media property created its media content for many people.

But Internet was a fourth chair that came to the table. It started to dominate the other three chairs utterly disrupting the “one:many” efficient, profitable marketing model in favor of a “many:many” model brought on by social media and mobile technologies.

As technology continued to evolve much faster than the other chairs at the table, the result of this disequilibrium was first felt by the media which suffered a near fatal blow. Agencies, now are feeling the full brunt of this dynamic largely because the “complexity” of social media is taking more and more of the traditional ad budgets.

So while the business has gotten more complex, agencies are trapped in an old “one:many” business model and have no clear way to evolve. Clients do not pay often for agency’s’ technological learning curves (how many agency folks were at TechCrunch Disrupt for instance???). And agencies can not charge $10,000 for a bunch of twitter updates (if you want to sleep peacefully at night).

That’s why in this new scenario even agencies that want to embrace complexity — can not because the profitable “one:many” marketing business model does not support the “many:many” business model. Case in point. Digital media buying agencies are paid as a percentage of billings, but since there are few billings in social media — they do not create those types of programs for their clients. There is no incentive for a digital agency to develop a program with no/ low billings and high complexity – now is there?

So before agencies can embrace marketing complexity – we have to figure out how to make money at it. Talk about complex.

Judy Shapiro

Musing from the TechCrunch’s Disrupt 2010 Conference – DAY 1

No doubt there will be a gaggle of reviews, reports, regurgitations and rehashing of what went on at Day 1. So, here are my personal musing, in no particular order, of what I felt at the conference, what I sensed and what I experienced. I figured all the smarter, nerdy heads will cover the conference at a cerebral level. This is a stream of consciousness – a gut data dump – as it were.

1) Before I get to the conference, Brian Morrissey of Brandweek tweets how the men’s room at the conference is jammed but the women’s room is “clear sailing”. I think – “that’s a change – usually it is the other way around.” But it certainly set the tone in my head.

2) The conference itself was conventionally unconventional as it was on the second floor of an office building. Lots of space and lots of nooks and crannies where startup and confabs gathered.

3) The uniform of the day… Jeans or jeans like object – an occasional pair of shorts popped up. T-shirts of various sizes and shapes. No business casual here – at least not much. Did I come to the right place or did I land in a college campus???

4) Large presentation room reminds me assembly at an all boys prep school.

5) Where have all the women gone!!!! I saw 8 startup companies present today and of all the 20 or so people – not a woman among the lot. Hmm….

6) Where have all the women gone who did not graduate yesterday go? Most women here are staffers, volunteers or support staff. Are they old enough to drink????

7) So much inspired thinking – so little market access. Most of the startups have hopes of selling to “big brands” but with little notion of how difficult it is for a brand to implement a niche idea – no matter how brilliant.  After having worked on 40 ventures at Bell Labs New Ventures Group – I can spot winners a mile way and I can spot trouble even faster. The “motherly” side of me wants to warn these entrepreneurs. I want to say; “Don’t bet your whole business on selling to big brands – that is really really hard!” But I say nothing because this is their moment to shine and I don’t want to take away from their joy. The realities of life will crowd in on them soon enough.

8 )  All this technology is bottled up a without clear market access strategy. When I ask the startups how are you going to market – I get fuzzy; “oh we work with agencies” or “We want to sell to brands”. I even had one startup say to me that 95% of possible leads are not useful to him because they are too small. Uh – what happened to “walk before you can run”?

9) I can see how 4 or 5 of these technologies could be combined for some kick ass marketing programs – kinda like a huge tinker toy set for marketers. I think I will go build myself something from all these parts. Hmm – I feel like a system integrator all of a sudden. Is that right?

10) Is it me – or does this feel like high school again where the “popular, cool” people hang together and everyone else tries to connect with them? Well, this is no surprise since I think the medium age of the conference might be – uh – 23 (utterly non scientific SWAG).

So ended DAY 1 of TechCrunch Disrupt Conference. I will tell you one for sure. I am not breaking out my jeans – I like dressing like an adult.

Go figure.

Judy Shapiro

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