ADAPTING THE PIPELINE

Running the Business of Emerging Marketing DisciplinesBrandon Holmes Managing Partner WELD

@brandoNRGbrandon@weldtheweb.com

• Business Stuff • Pipeline • Value Proposition• Profit Model

What You’re in For…

What You’re in For…• Industry Stuff

• Disruption• Media • Journalism• Marketing

The Pipeline• What marketers propose to do and

how we propose to do it is changing…

The Pipeline

Value Proposition • An idea that will help customers do

more affordably, effectively, conveniently a job that they've been trying to get done

• It's critical that you figure out how you help them do what they've already been trying to do, but more affordably and effectively

Value Proposition • Identify target customer, the job to

be done and the offering

• Most common barriers to getting a job done: Wealth / Access / Time / Skills

Internal UVP• For mid-market organizations and

business units of larger organizations,

• Who need to improve marketing ROI and growth performance in the online environment

• WELD is an Integrated Digital Marketing Company…

Internal UVP • That plans and executes data-driven,

pay-for-performance Internet marketing programs

• Designed to increase word-of-mouth through effective use of emerging Web technologies

• Unlike companies A, B and C• and via processes X, Y and Z

Profit Model: How Do You Make Money? • Revenue Model• Cost Structure• Margin Model• Resource velocity

What’s New?

Adapting to Disruption • "While many industries will be forced

into radical transformations and upheaval, none will be more affected than the Media, Marketing and Advertising trade”

• Lee, 2006

• http://www.marketing.fm/2006/03/06/the-end-of-the-big-advertising-agency/ The End of the Big Advertising Agency

Adapting to the Economy • "Marketing is under pressure. In

times of recession and downturn even more then before the various stakeholders require higher degrees of accountability and return on investments made, while budgets are cut…

Adapting to the Customer• On the other hand,

consumers and customers tune out the marketing communication that is fired at them."

Disruption in News• "The economy has caused an

immediate problem, but the business model for newspapers, based on circulation and advertising revenue, is broken."

• Senator Ben Cardin (D-MD) • May 25, 2009

• http://www.boston.com/business/articles/2009/03/25/newspapers_could_get_nonprofit_status/

Disruption in the Ad World • On January 19, 2009, Financial Times

reported that social networks threaten advertising growth: according to the Institute of Practitioners in Advertising (IPA), two-thirds of advertising agencies are not prepared for the industry changes prompted by social networks and new forms of digital media.

• http://www.ft.com/cms/s/0/45e61636-e25c-11dd-b1dd-0000779fd2ac.html?nclick_check=1

The Result…@adagencylayoffs

The Result…

“The Great Satan”

OMG…WTHAWGD?

The Systematic Factors • Enablement of individuals to create,

distribute and monetize content. • Connectivity of people, processes

and economic exchanges.• Disruptive technological advances

that accelerate social, political, organizational and economic change.

The Systemic Factors • Constant change

and discovery of how the new media both creates new models and destroys old ones.

The Business is Changing…• “We (those of us in the business of

communication) are defining and directing the future of journalism every day…in what we do.

• “creating new media opportunities; • developing new and immediate

relationships with audiences;• taking news and information directly

to audiences, where they live, work, talk and read;

• “…understanding that the 4th estate always has the same mandate no matter where its housed, who "owns" it or what execution or delivery route it chooses)

• “We also direct and define the future of journalism (marketing, communication) by what we don't do (by digging in our heels and refusing to embrace the changes that are core to the philosophy of news and reporting;

• “by ignoring our audiences or by assuming they should "follow" us rather than our "following" them;

• “by believing that journalism is based on dogma and articles of creed rather than on trust, credibility and our relationships with readers;

• by refusing to understand that the work of journalism in America has always depended on successful business models of delivery;

• “…and by confusing the future of journalism with the future of current models of delivery.”

• Chris Martin, VP University Advancement, WVU • Follow Chris on Twitter @ctonk144

Let’s Look at New Models • News: Global Post • Social Media: Izea and PayPerPost • Virtual World: Millions of US

Entrepreneurship in IMC? • Philip Balboni recommends that

journalism schools should teach entrepreneurial skills.

• Balboni's work with Columbia journalism students on Global Post was one of many academic-professional partnership ideas mentioned throughout the conference.

Global Post

A Web Site’s For-Profit Approachto World News

Global Post • 65 full-time journalist• $1,000/mos for freelancers • Cuts office costs • Journalists receive equity stakes• $199/year subscription (Freemium) • Sell stories to newspapers• Ads

Value Viral Marketing • To encourage value viral marketing,

companies must tailor the product or marketing message to the target audience, be relevant and appeal to the customer's perception of value.

Value Viral Marketing • Marketers cannot purposely create

this type of campaign for a product, service or content.

• The product alone must be good enough to create 'chatter'.

• http://wiki.media-culture.org.au/index.php/Viral_Marketing_-_Types_-_Value_Viral_Marketing

Enter the “Sponsored Conversation”

Sponsored Conversation • “A sponsored conversation is a social

media marketing technique in which brands provide financial or material compensation to bloggers in exchange for posting social media content about a product, service or website on their blog.”

• www.izea.com

Sponsored Conversation

Sponsored Conversation

Virtual Worlds Marketing Millions of Us • Immersive brand marketing through

virtual worlds, multiplayer online games, and social media.

• Blend of narrative with social and gaming elements creates experiences that take brand engagement to a new level.

Millions of Us • “We create value

at the intersection of the real and virtual worlds.”

• www.millionsofus.com

Google Lively – “L.A. Hardhats”

Lively Closes December, 2008

Predictions • In his book “The World is Flat”,

Thomas Friedman strongly urges businesses to develop a model and structure that is highly adaptable to change.

• He warns that jobs, industries, and entire careers will be born and die due to the rapid pace of technology.

Predictions • This will prove to be very true for the

future of Markteting, Advertising and Public Relations.

The New Agency….• …will constantly embrace change

and technology in order to survive unlike its predecessors whose fates lie with the dinosaurs.

Our opportunity• Entrant companies beat incumbents• Established company asks, should we

invest to create a new business model

• New companies create what needs to be created

Even the Pope has an iPod

Change is here. How are you adapting the pipeline?

Brandon HolmesManaging Partner

WELD @brandoNRG

brandon@weldtheweb.com