The Know More Media Business Debacle: A Series of Unfortunate Events - Are YOU Ready For Unfortunate Events?
July 29, 2008
Numerous online website and companies use Google as a source of revenue for their product or services and also to strategize how they will align with their competitors. The competition is fierce, no doubt, and the quest to be at the top of the Google search engine in any industry is coveted by large and small businesses alike.
Major online blog networks base and build their business model around advertising sales, keyword strategizing and placement and search engine ranks. The search for being first, being on top and being the most clicked site(s) consumes most days of CEO’s, journalists, bloggers, freelance writers and online marketers. But what happens when you simply cannot compete with the stiff competition that is in Google’s tight grasp, only to be given to the highest bidder or the most prolific clicker?
Only last week, Know More Media, a large online blogging network of business news and developments, announced that they would be closing their doors forever. Know More Media had been struggling some time with ad revenue and securing sponsors to keep their network afloat, but as the business owners found out…it was too little, too late.
Blogging is a task that is easy for any writer to begin. It’s been the latest craze for a number of years. As of December 2007, Technorati (a social networking site) reported that they are tracking over 112 million blogs on their system! Blogs are created for personal journals, corporate blogs (in the case of the one I write here for Corporate-Eye) and network blogs, like the one that was maintained by Know More Media.
The ease of starting and maintaining a blog for a writer is simple. He simply writes great, compelling content, uploads it to the blog and gets paid. How simple is that? But the business end of blogging for a corporate organization or a network is wholly a different story. The corporate blog network must constantly analyze data that relates to traffic, sponsors and ads and they have to continually review conversion rates and how those numbers factor into the revenue’s bottom line. It is a business that is easy to run but is a business nonetheless. Essentially, if a network is not productive or can not generate significant revenue through their ad placements, they suffer and this can make the network unappealing to potential sponsors or those willing to place ads on the sites.
Know More Media handled the news quite well and quite professionally in letting their bloggers and the Internet public know what the turn of events would be in the upcoming weeks. There were lots of sad bloggers and lots of heated discussions in the blogosphere on the reasons why this blog network failed. No one but the executives and the founders know exactly what caused the network to crumble, but there is general agreement that in order for a network of any size to function well and stay in competition, they must be managed well, be business savvy and know the inner workings of effective strategizing, marketing and online advertising in order for the network to experience success.
I for one was one of the bloggers at the network, and was taken aback by the news. My leadership blog at Leader Notes was one that had been started by the CEO of Know More Media, Hal Halladay. When I first began blogging on the network, there was an air of positive energy, attitudes that said “full steam ahead” and a business that was dedicated to thriving and seeing their bloggers do the same. It is amazing how so much can change in such a small amount of time.
Now with so many unanswered questions looming overhead, what will happen to the blogs, the bloggers, the founders and the network as a whole? How does a company bounce back from such a devastating action? What steps can your company take to ensure that this type of thing is avoided? Although the network is leaving and there are a number of bloggers in indecisive states, Know More Media is an unfortunate example of how quickly a business can take a turn for the worst. They have shown us all that we must carefully make provisions for the unknown and constantly think two to three frames ahead of ourselves in our business mind frame. I now speculate perhaps how they wish they had the chance to re-think all of their decisions…again.
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The Emirates Business Sponsorship Creates Winners
July 23, 2008
Business sponsorship is not a new marketing or public relations idea that businesses use to gain recognition or to instill goodwill in consumers. The idea has been used and is used quite frequently in the business community to create awareness and increase consumer spending.
Sponsorship involves a business offering financial support to a company, event, activity or organization in pursuit of their goal. The benefactor generally has a product or service that they are trying to increase awareness of or bring customers to. In many sponsorship cases, especially in business, the recipient of the support agrees to tout the name of the sponsor in their marketing or advertising, branding or promotions material. The situation works ideally for both parties because each gains exposure for their cause while offering a (perceived) value to its customers.
Soon, the internationally-based company, Emirates, will be enjoying that same type of attention once deal is sealed on their sponsorship of an airline service in the United Kingdom. Shortly, Concorde Roundabout will come to be known as the Emirates Roundabout. Emirates is a giant in the economic sector of international airlines, having attached its name to activities like thoroughbred horse racing, football, cricket and rugby. They have enjoyed phenomenal success and measure it by word-of-mouth wonders. People just “know” the brand of Emirates and trust its reliability. When the Emirates name is attached to a product or service, (as in the case of the new airlines), there is favorable response. When you’re in the land of Emirates, everyone just knows what to do.
Achieving the status and pleasure of being a household name is no easy task, for any company of any size. Working on marketing, advertising, strategic product placement, customer satisfaction and customer retention are but some of the challenges facing companies who seek branding and profitability. They may try several strategies, lose a lot of money and tweak a lot of budgets before they decide on what is best for the company. Sponsorship allows the company to gain exposure and market its product or service, all at the same time. Connecting with customers in the medium of sponsorship keeps the company name out front and establishes it as a business leader - - not to mention the coveted word-of-mouth and household name advertising that accompanies it.
What things have Emirates done right?
- As a corporation giant, they have sponsored and are sponsoring businesses that will tout their name and logo to thousands of potential customers.
- They have carefully and methodically chosen where they will place their business name. This is a make-or-break deal in the business world.
- They have taken the luxury of time to build a solid business foundation so that customers will gain trust in their product.
Although sponsoring a business can involve quite a bit of capital, the return on the investment is by far a greater reward for the sponsor. Giving and being involved in a business, supporting its functions and encouraging its business activities helps both businesses to thrive and establish themselves in the marketplace. I would speculate that with Emirates’ strategic sponsorship and business model, their corporate image will become a common business name, one where customers know and trust that they are getting exceptional service. After all, isn’t that the goal of all businesses?
Proctor and Gamble Realize the “Mommy” Strategy
July 22, 2008
Ask a typical stay-at-home what she does all day long, and she will likely answer with
- “change diapers”
- “watch Elmo”
- “wash dishes”
- “pay bills online”
Or a myriad of tongue-in-cheek answers that would indicate that mom’s value is likely within the four walls of her home. But all of that is about to change, has changed and has started with Proctor and Gamble.
In a recent strategic move that, in my opinion, elevated the public relations quotient factor at P&G by at least 30%, Proctor and Gamble decided to get the opinion of some folks who affect their target buying market and is a significant influence on them…
“It’s official: Mom bloggers are the new influencers,” said Bryan McCleary, director of external relations for P&G baby care.”
The baby diaper folks had 15 of the Internet top bloggers flown into their office in an all-expenses-paid trip to pick their brains, gain their assessment on their product, help tweak some things and hopefully impress them enough that they will blog about them, and do so quite favorably, on their blogs.
Many corporations and organizations like Proctor and Gamble are beginning to see the intrinsic value in what these Internet bloggers and high-influencers have to say. Blogging is slowly becoming a respected and even sought-after method for marketing and client attraction because it provides a first account of a product, service or idea that directly affects the customer. Bloggers tend to tell it like it is.
Bloggers are also effective because they establish relationships with their readers through their blogs and slowly but surely become a source of influence for their readers. When the community needs advice, seek reviews or compiles information, they will look to the expert on a topic and will almost always go with whatever the “opinion” of the blogger is since they have been in the trenches themselves. This is why mommy bloggers are popular and in high demand – they know what the customers want AND how to articulate that through their opinionated review blogs.
Proctor and Gamble and others who have used this strategy have not been so concerned as the mommy bloggers being celeb-moms (high profile names), but more interested in the voice they have over the Internet.
“In and of themselves, they’re not huge websites,” said Tina Sharkey, chairman and global president of BabyCenter. “But they were voices we felt were representational of the different moms online. … BabyCenter partnered with them so we could have a blog network not just for our consumers but also for marketers who wanted to get the reach of the influentials.”
As for the effect that this type of exposure has for P&G, results will be seen soon and visible in their bottom dollar. However, it was a very savvy business move on their part to embrace what is going on in the blogosphere and to capitalize on it without reserve and without apology.
Yum! That’s Good!
July 15, 2008
What is the best way to market your media message and create warm and fuzzy feelings in customers?
By giving.
Brand Awareness
Creating brand awareness and loyalty in customers start by sharing something that makes a difference in people. Giant corporate moguls often do this by creating grants, special opportunities or giving a portion of their products or services to consumers as give-a-ways. Many times, these perceived “marketing strategies” backfire, causing feelings other than warm and fuzzy and can set a tone for a bad name instead of a good one with customers. However, if their actions are successful, customers usually remember them for a long time, citing their generous acts as reasons to reward them with repeat business.
The largest restaurant chain systems, Louisville, KY based company Yum! Brands Inc. does create those warm and fuzzies by giving away what their trademark brand is…food. They have done this by partnering with the United Nations World Food Program and other hunger relief agencies to reach out and make a difference. Their efforts have touched the lives of over 1.6 million people globally, concentrating on areas where there is a significant impact on world hunger.
The Right Way
What’s remarkable about what Yum is doing is the way they have chosen to make a difference and the impact that it has world-wide. Instead of a corporation this size simply profiting and enjoying its profits, they have taken an interest in local and international global affairs and decided to make a difference. As a parlay into success in media relations, instilling brand awareness and maximizing their message, Yum! has done a wonderful job of and is an example to the value of this type of public relations. As the parent company to their fast-food restaurants like Pizza Hut, Taco Bell and others, they are a leading example of what and how community interaction on a significantly broader level can help any company achieve that coveted word-of-mouth advertising and the aforementioned “warm-and-fuzzies.”
When is Sharing Not a Good Idea?
Consumers have a special knack for seeing right through messages that are only interested in their dollars. They know when they’re being “sold” to and when the only thing the company is after is their business solely for the sake of having their business. To that end, corporations would be wise to be careful when they share goodwill or attempt to broaden the scope of their audience by using certain tactics. They should be sure that their motives are pure, although there is nothing wrong with marketing to gain new consumers. The key to this type of marketing strategy to be successful is to know what the boundaries are and avoiding them at all costs.
After the company has achieved their objective in consumer relations, they can then enjoy the aftermath of increased sales, increased exposure, a successful marketing message and all of he good word-of-mouth advertising it can stand.
Now, I’d say Yum!, that’s pretty darn good!
Viacom - The Mrs. Kravitz of the Internet
July 9, 2008
Viacom-YouTube News Video
Remember Mrs. Kravitz, the nosey neighbor from the 60s television show, Betwitched? If there was anything going on in the Stevens’ household, you can bet Mrs. Kravitz knew about it!
Privacy issues on the Internet have long been a debatable topic for quite a while. Users take great offense to being “Big Brothered” and having their viewing and purchasing habits scrutinized under watchful, bullying eyes.
In a consumer-angering move, Viacom sued Google-owned YouTube to the sum of $1 billion dollars for the right to access their customer’s information regarding their viewing habits and IP addresses. Needless to say, this move got quite a few people upset enough that some are taking action. What’s even scarier is that Viacom feels that they have a right to this information, without having even gotten permission from the users. They want to “see” what the viewers are viewing and from what ISP address they are viewing it from. Consumer’s privacy issues will possibly be compromised and every move we make will be noted by the great Viacom.
Mrs. Kravitz is watching.
So, how does Viacom feel about being called names like bully, or watchdogs or worse, meanies? In their defense, they noted on their website the details of what they will be extrapolating from the information derived from the YouTube files:
A recent discovery order by the Federal Court hearing the case of Viacom v. YouTube has triggered concern about what information will be disclosed by Google and YouTube and how it will be used. Viacom has not asked for and will not be obtaining any personally identifiable information of any YouTube user. The personally identifiable information that YouTube collects from its users will be stripped from the data before it is transferred to Viacom. Viacom will use the data exclusively for the purpose of proving our case against You Tube and Google.
Viacom has been in discussions with Google to develop a framework to share this data. We are committed to a process that will not only comply with the Court’s confidentiality order, but that will also meet our commitment to the strongest possible internet privacy protections.
It is unfortunate that we have been compelled to go to court to protect Viacom’s rights and the rights of the artists who work with and depend on us. YouTube and Google have put us in this position by continuing to defend their illegal and irresponsible conduct and by profiting from copyright infringement, when they could be implementing the safe and legal user generated content experience they promise.
Viacom states that they will only use the information to prove their case of copyright infringement against YouTube, and for nothing else. It is likely that people are not upset about the idea that they (Viacom) wants to protect their material, but that they are accessing files and then will “dispose” of the private, intrusive information portion. Likely not. Viacom has somehow successfully tainted their name in the communications industry and to the average consumer as being nosey – Mrs. Kravitz’s style.
“By seeking to make carriers and hosting providers liable for Internet communications, Viacom’s complaint threatens the way hundreds of millions of people legitimately exchange information, news, entertainment and political and artistic expression,” Google said in answer to Viacom’s March 13 suit.
This change will drastically affect the way consumers view the entertainment media. They will hesitate before they download or participate in surveys. They will think twice before they upload materials onto certain web portals. Finally, they will always wonder if someone, somewhere is watching their every move, noting their most intimate written thought or images or looking out at you through their stadium-sized computer monitors.
Yes, someone will be watching. And you’ll only wish that it were Mrs. Kravitz.