April 24, 2008
John Gallant, Network World, Inc. – Buyers Speak: What's on their Minds? (part 2)
Paul Gillin, Paul Gillin Communications – Online Media Challenges Age-Old Assumptions About Publishing
Elyse Tager, Elymedia, LLC – Podcasting – My Favorite Flavor of Communication These Days
Jean Romeo, Research Concepts, LLC – The Green Influence on IT Purchase Decisions
David Daoud , IDC – What's Happening in the Green IT Market? The Environment and its Impact on the IT Supplier Landscape
Dean Whitney , Digitas – Leveraging Web 2.0 Applications for Marketing
Buyers Speak: What's on their Minds? (part 2)
John Gallant, CEO, Network World, Inc.
In our last issue, I shared some of the key concerns tech buyers raised during a roundtable conversation I chaired at Network World’s IT Roadmap conference in Denver — and, by the way, our Chicago conference at the beginning of April was an even bigger success. During that roundtable, I had the opportunity to talk with these executives about how they use different media in their quest to keep current, make informed technology purchase decisions and move ahead in their careers. As promised, I wanted to bring you their ideas.
What they said is vital for marketers to understand as they strive to choose the right mix of media and tools to influence IT buyers — particularly in a difficult economic environment when it’s natural to question the value of branding versus lead gen. The comments of these IT roundtable participants were reinforced by members of Network World’s broader Technology Opinion Panel research group who also shared their thoughts about the value of print publications and online media in doing their jobs.
These days, conventional wisdom would have you believe that print has taken a back seat to online, that it’s become less important to IT buyers. But that’s not how IT folks actually see things. In fact, there’s a very clear distinction between the two media and a strong value proposition in how they reinforce one another.
To put this distinction in its simplest terms:
- IT buyers use online to get answers fast and to do targeted information gathering. In short, when IT executives have a problem, they go online to find answers — quickly. That’s important for Network World to understand in designing our own online offerings, and critical for marketers who want to make their Web sites valuable to buyers. Helping people easily solve problems and access technical expertise is vital. Also, making it easy for customers to research technologies and understand your solutions is paramount. When planning for, say, a rollout of virtualization technology, buyers dig deep online to learn more about the basics and understand what key providers bring to the table. The question is: Are you one of the key providers they are researching?
- IT buyers use print to ensure that they capture the big picture and discover issues, technologies, applications and ideas that they might not otherwise learn about. Print keeps buyers informed and it’s something of an insurance policy to offset the risk inherent in the very directed use of the Web — i.e., that I’ll miss something critical because I’m only searching for information about solutions and vendors of which I’m already aware. That’s a key concept for marketers to embrace. If buyers don’t know about you or the value of your solutions, will you be part of their online exploration? Bill McGowan, founder of MCI Communications, was known for reading dozens of publications, some in obscure fields, in order to discover what he dubbed the “unknown unknown”. As he explained it, there are things we know we don’t know (in my case, say, calculus or particle theory) and things we don’t know we don’t know. Those are the UNK-UNKs. Things in the UNK UNK category are the more dangerous — they are the industry, technology or competitive shifts you don’t see coming — but they also offer more opportunity if you’re on to them before someone else. Print is vital in making sure you learn about such opportunities and stay ahead of the UNK UNKs.
The messages of our reader panel were, as I mentioned, strongly reinforced by a recent survey of more than 500 NW research panelists.
- Panelists strongly agreed that print provides the opportunity for “accidental discovery” of information that’s valuable to them. In fact, 82% said they are more likely to learn about things outside their immediate focus of attention in print than using online. That helps readers stay ahead of the next project down the line.
- Over two-thirds say that print gives a big picture view that’s tougher to get online. I may be so drilled down in researching wireless online that I fail to see information about how my industry peers are deploying virtualization technology to save millions of dollars. Or to learn about a startup that offers a new tool that solves a long-standing problem I’m not working on right now.
- And readers say that print gives them a better opportunity to concentrate on learning and absorbing new information than in online. Print is a different experience and the way people soak up our information and your messages is different. It’s important to understand and capitalize on the power of that experience.
More important, there is a very strong link between what’s learned using print and what actions readers take online. Case in point: Nearly three-quarters of readers went online to learn more about a company they discovered in print. Almost as many saved an ad for future reference and a whopping 84% visited the Web site of a company they read about.
Again, we’ll be happy to share the executive summary of this research with you. And speaking of research, in the next issue I’ll cover what we’ve learned in our first buyer affinity study, this one covering the security market. We’ve captured some incredibly useful information about how well entrenched — or not — key industry players are and what strengths and weaknesses characterize the top companies. More on that later.
Bye for now.
Online Media Challenges Age-Old Assumptions About Publishing
Paul Gillin, Social Media Consultant and Author of The New Influencers
The shift from print to online media requires us to change a lot of our assumptions about marketing and publishing, but perhaps no transformation is more powerful than this: in the online world, publishing information is merely a starting point, not an endpoint.
If you grew up with mainstream media, this is a difficult concept to internalize. In the print world, publishers carefully assemble and verify information, submit it to a rigorous editing process and then commit it to posterity on paper. Once it's published, it's permanent. The opportunities to redistribute and evolve the information are severely limited.
Online media flips this equation. Today, published information is infinitely changeable. A story or message may morph and expand as times change and readers contribute their own perspectives. Look at Wikipedia as a shining example of this. A story on Wikipedia begins as a “stub.” Over time, additions, enhancements and corrections may develop that story into a work of vast scope and depth. All of this is performed in full public view. People with differing perspectives debate the facts and arbiters harmonize conflicting views. The true story may not be known for months or even years. That's okay, though. As details emerge, the living document is revised to reflect the latest information. The original publication is just the first stage of a process.
Online publishing also transforms our assumptions about distribution. In the print world, publishers and marketers are limited to disseminating information through the media they have at their disposal. Circulation and mailing lists guarantee a certain readership, but there’s little upside beyond that. Aside from the occasional reprint, the potential reach of information is limited.
The online process is very different. Information is published first and then disseminated through a network of partners, third-party commentators and search engines. Content never dies online. A document may find new relevance for a buyer who discovers it on Google a year later.
So how does this relate to marketing? For one thing, messages aren't one-way anymore. Your audience expects to contribute actively to the development of whatever content you produce. You're no longer under the gun to be the definitive source of information. You can reach out to your readers for help in enhancing and commenting upon whatever you publish. Your customers appreciate that. Involving them in a conversation is the best way to build a lasting bond.
You should also look at your customers, business partners and the community of bloggers and online publishers as potential distributors. By making your content available through RSS feeds, you open up new channels that may enable you to reach an audience that’s orders of magnitude beyond what you originally intended. Why not contact some influencers in your market and ask them to publish you RSS feed? Many of them are hungry for information to stoke the daily demands of their blogs or web sites.
The idea that information may not be fully baked when it reaches the public is difficult for many people to accept. But attitudes are changing. Today, the public beta test is an accepted model. The same principle applies to publishing. Speed and discussion can be just as important as fit and polish. Use this to your advantage by engaging in conversations that make your marketing messages a collaborative effort.
About Paul Gillin
Paul Gillin is a writer, speaker and content marketing consultant specializing in technology and new media. He specializes in social media and the application of personal publishing to brand awareness and business marketing. Paul is a veteran technology journalist with more than 23 years of editorial leadership experience. His book, The New Influencers, was published in 2007 and his next book, Secrets of Social Media Marketing, will be published this fall. You can read his blog and sign up for his weekly Social Media Report newsletter at www.paulgillin.com.
Podcasting – My Favorite Flavor of Communication These Days
Elyse Tager, Founder and Principal, Elymedia, LLC
One of the things you should consider in both your marketing mix, and product communications is podcasting. The medium is growing exponentially and worth a second look. We are encouraging all of our high tech clients to have their white papers converted to podcasts (or video — but that’s another story), and seeking out online placements for their audio files as well.
eMarketer estimates that the total US podcast audience reached 18.5 million in 2007.
Furthermore, that audience will increase by 251% to 65 million in 2012. And of those listeners, 25 million will be “active” users who tune in at least once a week.
A number of factors are driving the growth of the podcast-user base:
- Greater ease of consumption for podcast content
- Growing awareness of podcasting
- Terrestrial radio’s use and promotion of podcasting
- Increased penetration of portable players
- The evolution of smart phones and proliferation of affordable mobile data plans
“No one will argue that mobile devices and communication are becoming widespread,” says Mr. Verna. “Even so, the majority of podcasts are actually experienced on PCs, not portable devices.”
I think the real front-runners of a new media can be found in the trade groups, clubs and societies that spring up to support them. One that I’ve got my eye on is The Association for Downloadable Media.
I’ve been very interested in the progress of the ADM, since I’m such a podcast fan, both from a personal as well as a professional perspective. The ADM will be running a series of forums and hosting a party. I will certainly be attending some if not all of the sessions. Check them out.
Some of the issues the ADM is wrestling with are on their site. But their biggest challenge is their effort to establish terminology, standards, guidelines and best-practices that make downloadable content easy to justify, buy, scale and measure both in advertising efficacy and audience metrics. Once content is downloaded, all trackability and visibility disappear. So standard measurements of eyeballs (eardrums?), repeat listeners, pass alongs, Behavioral Targeting possibilities vanish if they ever existed. Kudos to this group for taking this on!
They will present their first Standards and Guidelines at Ad-Tech SF on April 16th. I’m sure there will be a podcast to download later, if you can’t be there in person.
If your companies are not utilizing podcasting for product marketing, training, or lead generation, you are missing a great opportunity.
About Elyse Tager
Elyse Tager is founder and principal of Elymedia, an online and traditional media agency that has worked with many of the world's most recognizable brands, from Microsoft to PowerBar. With 20 years of executive marketing experience in direct response and 10 years of Internet marketing experience, Elyse has gained a thorough understanding of both types of media and how they interact. This depth of experience and knowledge has benefited her clients as they strategize marketing objectives in both on- and offline worlds.
MARKET RESEARCH: The Green Influence on IT Purchase Decisions
Jean Romeo, Partner, Research Concepts, LLC
“Green” is the word du jour these days and it has permeated many facets of our lives — from grocery shopping where people are bringing their own reusable bags to driving hybrid cars.
How about in the IT world? Are organizations thinking about their carbon footprints as they deploy new technologies? IDC thinks so. It now has a “Green IT research team” that analyzes products, services and providers as well as the adoption of Green IT. In its Green IT survey, IDC found:
- Over 50% of customers consider the “greenness” of IT vendors when selecting a supplier.
- One-third of customers already consider it "important" or "very important" that IT suppliers have green offerings.
- Almost 80% of executives say that Green IT is growing in importance for their organization.
- The #1 driver for Green IT adoption is economic — to reduce operational costs.
(Source: IDC.com)
Network World’s research among its audience indicates there is a lot of opportunity in the green space for technology vendors. These opportunities come from two areas. First, there is a need to educate organizations on how to “go green.” Second, no single vendor has emerged as owner of the green space. And, the green momentum is growing.
A study we conducted in November 2007 among 590 members of Network World’s Technology Opinion Panel (TOP) asked respondents if energy-efficiency has become a checklist item when they evaluate IT products. Respondents were evenly divided with 49% indicating energy concerns are on their checklist and 51% indicating it is not a consideration. Almost 8 out of 10 (78%) are addressing power consumption in the data center. The top 3 power reduction activities:
- Removed servers and cabling no longer in use (47%)
- Consolidated physical servers through virtualization (42%)
- Acquired energy-efficient IT gear (41%)
In a different study related to data centers conducted in March, 2008 among just over 400 Technology Opinion Panel members, more than one-half (56%) said their organization is taking a serious look at how to reduce data center costs by controlling power consumption. However, many did not know how to actually analyze data center power issues, so there is an opportunity here for vendors to educate and work with organizations so they can more effectively manage power consumption.
In another study among 390 members of Network World’s TOP panel (March 2008), respondents were asked which of nine different initiatives are a priority. Priority was described as “attention and resources are being allocated to address the initiatives.” More than 3 out of 4 respondents (76%) indicated that “Adopting ‘green’ computing to reduce the environmental impact of IT” is either a priority now or will be within 12 months. However, 53% of the respondents could not identify any hardware vendor that offers environmentally responsible “green” solutions. These findings are another indication of the opportunity for vendors to differentiate themselves from the pack by being a leader in green computing.
Green computing has either already become or will shortly become a priority for most organizations. Yet, organizations don’t have a complete understanding of how to reduce their carbon footprints. There is a huge opportunity here for vendors to step in and educate customers as well as differentiate themselves from other providers by innovating in the green computing solution space.
Contact Information
Jean Romeo can be reached at jromeo@research-concepts.com or at 978-443-9042.
What's Happening in the Green IT Market? The Environment and its Impact on the IT Supplier Landscape
David Daoud, Research Manager, IDC
Traditionally ignored by IT managers and consumers, the environmental factor is now front and center as IT users question the ecological impact of the electronics they buy. In the business sector, IT managers are revisiting their product lifecycle practices, by paying closer attention to the products that show a more positive environmental impact at the front end of the procurement phase. At the tail end of the lifecycle, companies are currently revisiting their asset disposal strategies, so as to minimize their environmental footprint and reduce their contribution to the difficult issue of electronic waste. On the consumer side, interest for green products is also on the rise for similar reasons.
With buyers' attitudes shifting toward a greener IT and electronic landscape, IT suppliers, from PC and system vendors to consumer electronic manufacturers are under intense pressure to supply products that can demonstrate greater efficiency in energy consumption. They are also being challenged to produce systems that are designed for the environment, including using modular designs for ease of demanufacturing, while reducing toxins to have a more positive impact during the recycling process.
Becoming a greener IT supplier will undoubtedly benefit the savviest vendors, in particular those that are incorporating energy savings and new design components into their product roadmaps. But that is not enough. IT suppliers that could help their clients plan, adopt, and manage an end-to-end green IT practice will have a stronger position in the marketplace. To achieve such performance, new partnerships will have to be created, with the idea of leveraging pockets of expertise that are beyond the IT supplier's core business. This includes establishing more power management features at the component and software level, all the way to handling asset disposal in the downstream, areas that are typically delivered by specialty providers.
Unfortunately not all IT vendors are ready for the shift. Many companies, in particular those that are considered mid to low-tier vendors may run out of resources to manage such transformation in product innovation and lifecycle management practices. Many are not even paying attention to this new wave of Green IT. As such, IDC expects some consolidation to occur as a result of the environmental pressure. In contrast, large IT vendors are likely to benefit, with the potential of new revenue streams from non-core services by leveraging an ecosystem of partners to offer cradle-to-grave solutions. IDC is seeing companies like Dell, HP and IBM as the leading corporate IT vendors expanding in this environment, in particular as they have been articulating and putting in place solid offerings. Nokia is another good example of a Green product supplier to consumers and prosumers with an innovative Green IT practice. But many other vendors have yet to articulate their position and until they do, they risk becoming less relevant over time.
About David Daoud
David Daoud is Research Manager with IDC's U.S. Quarterly PC Tracker and Personal Computing programs. He is responsible for analyzing and forecasting the PC market. In this role, he interfaces with a large roster of PC vendors, distributors, retailers, component and software makers, and applies his market expertise to help shape forecasts related to products, customers, and channels in the U.S. market. In addition, Mr. Daoud is involved in Green IT research and how the environment is reshapping IT lifecycle, asset disposal and recovery and recycling.
Leveraging Web 2.0 Applications for Marketing
Dean Whitney, VP/Group Director, Digitas
Web 2.0 applications leverage social media and open technology to deliver rich user experiences. The most successful Web 2.0 solutions solve problems in unique ways. Commonly these are simple often free solutions.
Consumers are trying to avoid marketers
Too often marketers try to add social media tools to advertising, create viral games or other marketing content intended to entertain consumers. Consumers are looking for tools and applications that solve problems; that are useful. Here are some examples:
- Flickr: With almost 10,000 registered users Flickr is an image/video hosting website, web services suite and an online community platform. It was one of the earliest Web 2.0 applications and one of the most popular social photo sharing sites (Alexa Rank 39). Flickr offers its service free for up to 100MB of uploads per month and unlimited uploads for pro users; the account cost $25 per month. Flickr was purchased by Yahoo in March of 2005.
- Remember the Milk (RTM): RTM is a very popular task and time management web application. On March 19th RTM reached 500,000 registered users. This is quite an achievement considering that it has been developed by two people working out of a home office in Sidney Australia. The site leverage all kinds of 3rd party api’s to offer extended services including Google Gears that allows users to use the application offline. The $25 Pro Account gets you a mobile client and some good karma.
- Twitter: Twitter is all about “what are you doing right now?”, its a free social networking and micro-blogging service that allows users to post content updates or "tweets" up to 140 characters long. Users can use a variety of methods; can post on the website, from instant messenger, SMS text, and a variety of 3rd party services such as Facebook, Twitterrific and TwitPics. There is no paid version (yet).
How can marketers leverage Web 2.0 application?
Marketers should follow Web 2.0 technology and look for solutions that their constituents can benefit from, that fit into customer needs and relate to the brand. It could be a great mapping tool for a tire company or social stock picks website from an investment magazine. The relationship can be direct or complimentary.
Marketers and providers can both benefit
The marketer may expect to underwrite custom functionality or services geared toward their campaign; while the provider can benefit from the exposure and subscribers using their product and a source of development funding. Additionally the user insight can help inform the product roadmap.
How can the brand benefit?
Imagine if American Express Small Business introduced Remember the Milk to members globally? What if Wal-Mart funded the initial growth of Flickr so that members could click a button to ‘print at Wal-Mart’? What if a leading mobile carrier spotted the potential with Twitter and marketed the service to their clients? The brand benefits by association with the value added solution. The relationship can be structured in a variety of ways:
- Brand media campaign can promote the service as part of a campaign theme (get productive, share content etc.)
- The service can be customized and integrated with the member account. For example when making an online purchase at Wal-Mart I could be prompted to print my Flickr photos.
- Co-branding is an approach that should be taken carefully not to dilute the perceived value of the solution or negate the product relationship. There are subtle ways to integrate marketing that won’t disenfranchise consumers.
- Mashups or composite application may leverage the brand content using the Web 2.0 application to create a widget or service of value to their customers.
Concluding thoughts
A recent comScore study suggested that “heavy clickers” distort the reality of display advertising. Heavy clickers skew towards Internet users between the ages of 25-44 and households with an income under $40,000. This study suggests that most of the clicks are originated by this low value segment; that 6% are responsible for up to 50% of the clicks.
Marketers should avoid trying to make advertising more social or viral. Consumers that matter don’t want to view and share commercials and marketing games online. We have Tivo and spam blocker to avoid marketing. Marketers can leverage Web 2.0 solutions that add value, solve problems and that users benefit from. Focus on quality not quantity.
About Dean Whitney
An early pioneer in interactive media, Dean Whitney is a Web 2.0 and Social media technology evangelist. He is an executive with global digital marketing firm Digitas where he works with leading brands to develop and implement online strategies. Prior to Digitas Dean has headed technology with two successful start-ups and interactive groups at CSC and HP. He has worked some of the world’s most successful brands including Cisco, Fidelity, General Motors, Microsoft, Pfizer and collaborated with top agencies such as Leo Burnett, Saatchi & Saatchi and Starcom. You can read his blog at www.deanwhitney.com