Moving beyond impressions

Moving beyond impressions by Seth Godin

Internet advertising is so cheap (particularly Facebook and run of site network buys) that just about anyone can afford a million impressions, and a billion isn’t out of reach.

Pretty soon it turns into noise. An infinite number of impressions is dangerously close to no impressions at all.

The conversation media reps have with advertisers quickly devolves into, "how cheap can I buy a million impressions?" What a waste. That number, out of context, is nothing but a crutch, a poor stand in for the insightful analysis that media buyers ought to be using.

Far better to focus on two things, both leading to the real goal:

Perception. Does the ad you’re running increase the value of your name? Are you perceived as an annoyance, an interruptor--or are you a valued sponsor, a trusted friend, someone who is making things better?

and

Interaction. Not merely a click that leads to a sale. I’m talking about any sort of interaction with you or your organization, whether it’s an online chat, a phone call or navigating your site. Too often, online marketers are focused on pennies per click instead of long-term value per engagement.

Both perception and interaction lead to permission. Permission to deliver anticipated, personal and relevant messages over time. Permission to tell a story. Permission to earn attention on an ongoing basis. 

Impressions don’t automatically get you permission. In fact, they might cost it.

[I'm amused to sometimes hear people refer to my concept of "Permission Marketing" as "Permissive Marketing." Pretty Freudian.]


ADAM BUTLER 2401 East 6th Street #1002 Austin, TX 78702
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"Corpo pricing power going kaput." via my amigo Ryan Donelson

My friend Ryan is a wealth manager. He is also a straight talker. I found this to be a great read. Umair Haque would be proud. 


Basically, in a nutshell.  Pricing power does not exist for products and services when folks have no money to spend.  Thus, with massive unemployment (12.5% if you look at adjustments for % of population actually working vs. government “sunny day” numbers of 8.8%) puts no money in Americans’ pockets to spend.  With little to spend where do corporations expect to grow significantly?   Corporations have thus far squeezed out huge efficiencies in their workforce and effectively lowering bottom line costs thus driving up stock prices because of these efficiencies.  Corporations seem to be working on a sort of skeleton crew demanding maximum efficiency from employees but not really adding significant new employees.  Common sense tells me many winds face the market, stock market that is:

 

1.       If corporations can’t tighten anymore, profits must be attained from selling goods and services to a significantly “more broke than usual” thrifty pack of consumers in the US.

2.       The home equity takeout is gone.  In other words, few can walk into Wells Fargo and start draining equity out of their home like an ATM then spending the money thus driving corporate growth

3.       The fact that I pay more for gas and groceries only steals from my other purchases I may have made.  Apple is not going to make any money off me in the near future and I’ll live with my I phone 3GS for the time being.  This hurts corporations thus making them lower prices to entice me to buy a new I phone.

4.       Petroleum products are in about every inedible product out there.  Corn and wheat are in about every food product.  Cotton is in about every piece of clothing.  These raw materials have all doubled or tripled in price since this mess started in 2008.  I can think of a few products tied directly but not many in my daily life. Can you?  Gas, maybe.  Oil change, no.  Wheaties cereal, No.  Corn on the cob, no.  Clothes for my kids at Old Navy, not even close.  Corporations have to “eat” this price increase of raw materials and in “eats” away at profit margins.  Shrinking profit margins are not good for stock prices.

5.       The government started this whole QE campaign because they were worried precisely about falling prices.  They didn’t start QE campaigns because they were worried about inflation.  If they were worried about inflation they could raise rates overnight and stop it in its tracks much like the early 80’s.  DELFLATION is much more of an immovable force.  Trying to stop it is like cooling a swimming pool by dumping bags of ice in.

6.       Finally, deflation is a bond owners best friend which will help my bond investors out there.

 

It’s not a time to start buying every stock out there and listening to the media.  It’s time to protect what you have in investments and look for bargains or niche markets that can grow in this environment.  Funds that hedge aggressive bets in volatile markets and tax free municipal bonds would be a great place to start.  But not all of them.. many are garbage.  Please let me know if you need help or pass my name on to those that may need help through this environment to protect what they have or plan for what they or their kids will need down the road.

 

Have a great day!

 

Ryan (ryan.donelson@lpl.com)