Marketing Communications: The Language That Drives Business Revenue

An article I tweeted  talks about the increasing emphasis on content creation for marketing: “@Kquesen: The tables turn – in social media marketers must think & act like publishers: 4 tips for building brand & audience … http://t.co/MQiGxDFe

But that is just one small example. B to B reports that marketers such as Nick Panayi from the IT services company Computer Sciences Corp. have gone all-in with content creation with an in-house department of former journalists who create branded content for their website and social media channels.

Marketers are becoming bloggers and are Tweeting and creating videos and filling Facebook pages. They are creating a lot of content. Content  with value that delivers knowledge, entertainment, something people will choose to engage with like they do newspapers, magazines, and TV. Forbes agrees saying brands such as Virgin Mobile, American Express, Marriott, L’Oreal, and Vanguard are becoming publishers and this is a vital part of their overall strategy.

You may call this content marketing, but it made me think about the overall importance of communications in business. We live in an age of customer-driven capitalism where the customer is now in charge. As Steve Denning, author of Radical Management points out in one example “… focus on customers first doesn’t hurt Whole Foods’s bottom line. The ten year share price of Whole Foods is up 330%, compared +30 percent for the S&P 500, and minus 40% for a traditionally managed supermarket chain like Safeway.” That’s consumer focused communications increasing revenue.

How many e-Books/White Papers do you get invited to download? They are generating valuable sales leads. As I highlighted in an earlier post, Forester Research reports in the book groundswell a case study where a corporate blog is credited with generating five contacts a week – contacts that represent early leads worth millions of dollars to this B to B company’s salespeople. That’s consumer focused communications increasing revenue.

A recent Bloomberg Businessweek article credits carefully worded and tested fundraising e-mails as the main source of $690 million raised online for the Obama campaign. Of hundreds of tested subject lines “Hey” was the most successful bringing in millions of dollars alone. That’s consumer focused communications increasing revenue.

Those are positive examples, but poor communications can cost corporations revenue. Poor communication contributed a great deal to Merck loosing $253 million in the Vioxx trial. The jury was confused by their scientific explanations. The Wall Street Journal reports juror John Ostrom as saying “Whenever Merck was up there, it was like wah, wah, wah. We didn’t know what the heck they were talking about.” That’s poor consumer communications losing revenue.

An Accenture study reports American and European consumers returned over $25 billion in electronics in 2007. Between 60%–85% had nothing wrong ($15.2 and $21.5 billion). Why? Confusing interfaces, features difficult to access, no customer education, and weak documentation. That’s poor consumer communications losing revenue.

In 2006, a disgruntled customer used YouTube and Twitter to spread a music video about United Airline’s mishandling of his $3,500 guitar. Within a week the video received 3 million views (12.5 million by 2012) and coverage in CNN, The Wall Street Journal, BBC and the CBS Morning Show. Fast Company reported that Carroll contacted United for nine months with calls and emails, but only after the video’s success and United’s stock price drop of 10% ($180 million) did the company try to make things right. That’s poor consumer communications losing revenue.

Then there is the tweet that sent the Dow average down 145 points in Spring of 2013. Hackers used @AP to spread a rumor that two explosions had gone off at the White House, injuring the president. This caused a two-minute selling spree in which the Dow stocks dropped $200 billion in value, which emphasized the power of social media content on the financial industry.

Of course no article about communications would be complete without a reference to Apple – the World’s Most Powerful Brand valued at $87.1 billion. In an Entrepreneur article “Steve Jobs and the Seven Rules of Success,” six of the seven rules are communications oriented: Have passion, deliver vision, make connections, create experiences, master messages, and sell dreams.

Jeffrey Rohrs takes this concept to the next level in his latest book Audience: Marketing in the Age of Subscribers, Fans & Followers. Communications, through publishing content, is how you build audience and proprietary audience is a valuable business asset. Whether you are a CEO, CMO, marketer, or entrepreneur communications can be a competitive advantage. Do you believe that what we say and how we say it matters to the bottom line?

Are Mobile Ads Still Annoying?

In 2008 a Forrester research report said that most forms of mobile advertising were annoying to most people. Of those surveyed, 65% said they were annoyed when an ad appeared while a web page was loading, 57% found ads appearing alongside maps annoying, 56% found banner ads annoying, 48% found paid search ads annoying. The least annoying ad format was pre-rolls for mobile video clips or games. How are we doing two years later?

According to Steve Jobs we’re not doing much better. Last month, Apple unveiling iAd its new mobile advertising platform called iAd. Built in to the new iPhone OS 4.0 operating system. Why the need for a new system? Jobs explained, ” Our developers are putting ads into apps, and for lack of a better way to say it, we think most of this kind of advertising sucks.” In the video below is a Nike iAd demo that does not.

iAd includes an emphasis on “emotion and interactivity.” Ads will allow users to stay in the app they’re using. Apple will sell and host the advertisements that appear on iAd, sharing 60% of the ad revenue with the developer. Steve Jobs noted that currently users are discouraged from clicking on app ads because it takes them out of the application they’re using. Apple’s solution is to create an interface that lets users access the advertisers’ interactive and video content without leaving the app.

According to Crisp Wireless there are other ways to ensure that your mobile ads are not irritating:

  • Frequency Capping – This limits impressions to no more than one to two a day per visitor.
  • ‘Layer’ the Ad – In full screen ads use a gradient or other technique to make sure the users site is still visible beneath the ad, so they don’t think they’ve arrived at the place.
  • Ability to Skip – Always offer the ability to skip the ad. This is common practice online. People are used to it.
  • Time Out – The ad should time out after 7 to 10 seconds, so the user is taken to their content without any further action.

Will Apple once again take the lead in a new digital area or can others step up to the task?