Tumblr’s $1.1B price tag was a fair one.
It stopped me though, and forced me to rethink and recommit to the truly transformative power of these social nets, and their value, way beyond their present revenues.
It also reconfirmed my strong belief that native advertising as the monetizing engine for these super social nets has little to do with their value. Discussions on the non-intrusive nature of native ads are a bit silly. Ads are intrusive by nature, and ‘intrusive lite’ is merely a masquerade, sweeping intent under the carpet.
Net native communities and networks have changed the very culture of our world at its core. They’ve shattered our ideas of time and space. Changed language and commerce. Impacted behavioral norms not just online, but everywhere.
Back when e-commerce ruled the web, we put cars, art, real estate and most every hard good online, and made pricing transparency the new ethos. We redefined disruption, moving customers to the power seat and companies to the sidelines.
It was a defining change, but pales in comparison to the remapping of the world and human interactions that native platforms like Tumblr, Twitter and Facebook have enabled. What is happening on and between them is nothing less than transformational to how we all live our lives.
The core difference of course is that e-commerce is measured in importance solely by the dollars it creates from the clicks you capture. Social nets have changed human behavior and culture, not simply how we shop for theatre tickets or ski passes.
This is not to say that commerce doesn’t happen, or that we as companies won’t market on these platforms. We do today, rather badly as a rule, but advertising, no matter how you define it or morph it into a socially acceptable, non-interruptive formant, is not natural to social interaction.
The core marketing power of net native communities is that each has its own unit of language and gestures, specific to the context of the platform itself.
Social media pundits have this all wrong with their commandments on how to talk, market and sell to this social new world. They make the world think that how people act and communicate, share and sell on one net is the same as on every other. That how we sell clothes is the same as how we sell wine, and that we can sell them whenever and wherever people congregate.
It’s simply not true.
When behaviors change, language and culture morph. Each of the net native networks have unique behavioral dialects, specific to the networks themselves. We act differently wherever we are. Same person, different language and intent. Once size does not fit all.
Think of it this way.
Twitter. Core unit of language: the Tweet. It’s all about shared gestures, one-to-many broadcast in a looking-glass like paradigm. You speak or share, others listen, watch and consume. It’s the perfect currency for immediacy and leadership, with the most popular as the most influential.
Tumblr. Core unit of language: pictogram as post. Concrete poetry whether in text or graphics. Non-conversational, yet highly communal. One-to-one connections, like tattooed images with emotional impact tumbled across our memories in a collective stream.
Facebook. Core unit of language: the gesture of liking. Pile the world’s population into a huge funnel and give them a monosyllabic language to click at each other. Raw,primitive and simplistic. Posts as the unit of language are coming on strong though, and a conversational platform is surfacing regardless of the built in technical limitations.
The core marketing truth that you need to speak to customers in their own language has adapted to this context into how you talk to people and communities is specific to the networks you engage them on.
And that not every network is suitable as a selling place for every product.
Seems obvious doesn’t it?
But the number of companies that are pushing tweets to their Facebook streams and standing on top of their social strategies as one homogeneous activity across different networks is more common than not. Companies pushing discounts when people want to chat about politics or sports
Our challenge in business is always communications. It’s that simple. We need to discover, engage, transact with, and then support the customer. Context and timing is everything.
The native social nets are the web’s gift to us as business owners and marketers.
They are there, omnipresent, open for business with no admittance charge. Our customers and community members are milling around, transparent and open to hearing what matters to them.
I have an ask for Marissa Mayer at Yahoo.
Don’t focus on making ads palatable for Tumblr. They simply aren’t by nature in this environment.
As a marketer, business owner and consultant to numerous companies, I’m happy to pay for creative ways to discover communities of like interest. Don’t build a model based on how you sell display ads today, but for the longest possible tail of your network. For the rest of us.
Help me do that in Tumblr’s unique way and I’m all in.
The big aha from all the noise about the Tumblr acquisition was a huge sigh of optimism now that here are dollars to not only keep it going, but to make it better.
Imagine a world without Tumblr, Twitter, Instagram, Pinterest, and Facebook. A sad thought actually.
Imagine a world of objective clicks, where business communications was again a science and supposition, and the net was reduced to data and analysis, not people and communities. Where transactions were the definition of loyalty, and feedback a survey by unattached third parties.
The greatest part of these native communities is that they are there, unique, open, communal, yet distinct from each other.
The greatest boon to companies today is that we know where our customers are. We also know the language they speak, their motivations and behaviors in each place they frequent.
It ain’t easy to discover the right customer in the proper context and understand the language to speak with them. Never has been. But the social nets give us two steps towards the door, as we already know where to look.
All we need to do is to learn to play by the rules and speak the language. Not ours–theirs. They are actually waiting for us.
This is what marketers do.
Context is that dynamic space couched between what we sell as companies and what our customers believe they buy. It’s the common ground of brand and community.
At its aspirational best, it’s the intersection of company intent and customer need, both market filter and customer aggregator.
Think of it this way.
Companies sell value, beliefs and a future you as a package, not a product in a catalog. They sell a shared tomorrow of satisfaction and empowerment. This is true for sports clubs, Audi dealerships and dating sites. True for empowering tech, consumer gadgets and social nets. True for Armani and cruise lines alike.
It’s the tangible environment for creating shared value that shows up in customer loyalty and price premiums. And it is true for most everything we buy except pure commodities.
Products have never been simply the digits or atoms from which they are made. We buy in order to do certain things (think tech or sports gear), but objectivity fades on first use. Or even before if the sale was a referral. The brilliance of early Amazon customer reviews captured this perfectly and embedded personal customer selling into objective catalogue shopping.
The rub is that products are invariably an approximation of the promise behind them. This is probably more true today than ever before, as we can build and market earlier and more easily in a global web market.
Those of us in the business of making products know the drill well. The slide from big idea to customer experience is a long road of approximation; a honing that is often reduced to throwing out what doesn’t work in the hopes of discovering what truly does. That’s just reality, exacerbated 1000x when the gestalt of the product in any way depends on the network of users who adopt it.
This changes the marketing game completely, making the best solution to wire intent and customer context into the bits of the product itself.
This is why I’m so stuck that Value needs to be sold. Why a sales and creative marketing mentality connecting early product intent with customer want is just common sense. The best companies, even at an embryonic state, practice the craft of giving the customer something they didn’t really know they wanted until they made it their own. They do this with the rawest of materials and the most simplistic products, but with the most passionate and articulate intent.
This is intent contextualized in the nucleus of a product, the dynamics of selling and shared ownership with your customers.
The crystallization of intent, of course, is nothing unless bought into by the market. The chasm between intent as the honed idea of what you are about, and how to connect with those who just might care, is always the acid test for company survival.
Context, not the science of marketing, is the bridge here.
Most companies know who they are and what value they bring. They may not have articulation down to a phrase, but passion personified not perfection captured is the key to company positioning.
But most sputter and stall at the contextualization of it. This is hard, self-conscious work, deeply informed by experience and prey to luck and market realities.
Companies, for the most part, just don’t get this. They just throw stuff against the market wall. Passive aw-shucks marketing at its very worst. It just doesn’t work.
If you don’t take a stand for what you are about from first market contact, expecting the market to discover that for you is shortsighted foolishness. Build it and they will come is a cute phrase, but devoid of reality and sense as either tactic or strategy.
Connecting with a market, finding the contextual reality that enables you to get found by the right people in an environment where you can engage and sell your value is what this is about.
If you buy into this (and I do!), it stylizes how you build your company, your product and your marketing outreach.
It’s also empowering and enforces the reality that we do indeed make our own luck by working smarter and harder, and with more focused intent than everyone else. Most importantly, it pushes us to dig deep into our own beliefs of why we can matter to our customers, and focus on getting a bit of the market’s attention rather than chasing trends or competition.
Contextualizing intent is my way to thinking about how to create markets and communities that are willing to be sold to. How to make decisions on what and how to build campaigns, brands and even the products themselves.
Winning companies do this. They may not use these terms but their intent is invariably the same. Great marketers are their guides in making this happen.
Few things are more commercially powerful than your customers seeing themselves in your brand, connecting with your product value, at scale, across the marketplace.
Concepts, like brand and community, are big aspirational ideas with tangible applications. Not every company will build a community of substance, but success without brand connection with your customers, outside of a pure commodity play, just doesn’t happen.
Brands, at their core, are rapt with anomalies.
We design them with specific intent but in reality, they exist solely in the emotions and beliefs of our customers. We craft each component, but the results are unpredictable at best, ineffable even. We build them with excruciating attention to detail, yet their power and control rests solely in our customers’ perceptions.
And of all the things we do as marketers, nothing pays back dividends more than a brand that connects with passion and purpose. You can’t hold a brand in your hand but you can measure its value in dollars.
From a market perspective, a brand is simply your customer’s and the market’s view of your company value translated into their own terms that drives their purchasing behavior.
It’s that simple to define. And truly difficult to place in motion.
Whether you are Lululemon selling joy wrapped in yoga gear, Nordstrom’s selling customer service as shoes, or Blizzard skis selling attitude and over the top performance with their new Bonafide—It’s brand that drives who they are in their customer’s eyes.
As entrepreneurs, we start from nothing and will our brands into being. Graying brands are dusted off as markets and products change. And we leverage brand value into new products and broader markets.
Brands are mostly built by intent, and however different the segment and state of the company, I always comes back to these four simple elements to build from.
-What is your company about? It’s core value?
Not just today, but over time.
Are you selling sneakers, sports footwear that speaks to excellence on the court or performance engineering? Waterproof hiking boots, the wonder of the great outdoors or wildlife preservation? A business tool for predicting and managing growth or power of the science and math to add weight to business decisions?
This is non trivial to really get clear. It’s a powerful rudder for business and communications decisions once you discover it.
-What’s the connection between what you believe and what you sell?
Some companies sell their dream and wear their core beliefs on their sleeves. The artisanal movement is all about this. One to one connection between product and value.
Or are you like General Electric, donating money to ‘causes’ to elevate your humanity in your customer’s minds? Or a neighborhood business giving part of your profit to support your local schools giving back where you earn?
Digging in and really understanding who you are, and how you sell and attract customers, is key to playing out how true your brand is and how it plays into your model.
-What’s your unique vernacular?
How we are heard is equal to what is said. A core marketing tenet.
Are you about information, crisp and clean? Referential and objective, or conversational, messy and communal? Are you about delight in a phrase that informs, or a SKU number to purchase with the utmost efficiency?
There’s no one right answer and the brands that rise from nowhere to become part of the mass market’s world are invariably inventing a new voice along with new value.
-Is what you look like who you are?
Do you really think that how you look is who you are? Or are you a platform to surface the perceptions of your customers? Or are they one and the same for you?
Brand, as a term, came from branding livestock to create ownership stamps. I’m a believer that how you dress is part of who you are. I’m not a believer that logo and presentation as marketing is key. It colors more than it defines.
Whether you are a bakery down the street, a global platform for gathering opinions, a neighborhood brewery or a social network. Whether you sell to customers directly or sell to partners who touch the customer through their own brand, these are the questions to ask yourself. These are the conversations I have with clients every week.
It’s that amazingly not simple, like all things marketing.
We all start out believing we are Apple. The best example of a mass market brand that is loved and revered.
All brands are not created equally of course. Some by definition are highly charged, like Apple, Armani, Porsche or your local artisan. Some are functional, yet still essential, like QuickBooks or Asana. And some we use but honestly dislike and will replace as soon as there is an alternative, like Time Warner Cable or Verizon Wireless.
We start from the same place, from the same four questions and end up where the market, your skills and luck takes you.
Brands are not market veneers nor window dressing or a makeover.
They are the molecular element that is inclusive of everything from your product capabilities, your pricing, to your company attitude. It’s what compels people to buy your product rather than someone else’s. Pay a bit more to support you and most important, feel like you are making the product just for them. And feel good about it buying it and making it their own. Then sharing that decision and contentment with others.
That’s where brand value becomes market magic.
The web makes starting things easy. It also makes us a bit lazy and smugly entitled.
We throw up a blog. Set up a store and sell something. Imagine a market or merchant need, and thread connections in a new way with an eye towards relayering peoples wants and needs.
It’s easy and inexpensive to get started on the web. Technology is our ally here.
Human nature, however, is not, and the web is littered with lightly programmed skeletal ideas hanging by threads. Not ready for prime time, not sure where to go next and no real idea how to get there.
Somehow people think that it just happens.
And somehow businesses think that just being there is marketing itself, as if the web is a favored address with qualified street traffic walking in the door.
Of course, neither is true.
There’s a softness that comes from these expectations that is out of whack with reality. There’s a misunderstanding that even though your customer may be in control, they certainly aren’t always right. That opted in discovery is what lead gen should be but you need to push hard before the market starts to pull.
This customer first perception as right as it is, is wrong when it drives marketing as survey, marketing as asking a customer what they like and what they want. It is about setting a new context and selling the value of the experience. Then you see if it touches a nerve
Actually, Henry Ford captured this perfectly:
“If I had asked people what they wanted, they would have said faster horses.”
At its core, permission-based marketing has nothing to do with asking the customers or the community what they want. They are giving you the permission to sell them, not determining what they want.
I believe that core value needs to be sold. Sold smartly and sold hard. It’s really that simple, although the craft of selling and the orchestration of setting the proper environment are anything but trivial.
Neither the market nor people know what they want until you sell it to them. I’m not referring to a transaction, but to shared perceptions of a different tomorrow. Letting something be tried on with anticipation and good will, and seeing something in a new way.
New doesn’t just happen, it needs to carve it’s own spot in the market. New doesn’t exist to be bought, it needs to be sold within a conversation. Within an experience. Within a new context.
Some ideas have logical inklings of pent-up market demand (a singular online POS system for all consumers), and some things have merchant demand (customer acquisition tools that work for the SMB) but a generalized need and product that suits it are completely different.
There are exceptions of course, but there are no overnight successes. The idea of “Build it and they will come” is no idea at all.
We all dream of that magic moment when you stop pushing the market and it starts to inch toward you and pulls, as if with new found gravity. When your dashboard of metrics on campaigns and activities has no logical relation to the positive growth of traffic, transactions, referrals or market attention.
Most every successful company and product has that market aha moment.
It doesn’t happen because you built something and the market just moseyed on over. It happens because you pushed and sold, with passion and persistence. Because you found bridges between circles of adopters that, in total, defined a new community of customers.
Ideas in product form are the fuel that drives, but that the market defines. In between is where we work, iterate, execute and create our own luck.
Selling value is tough. Marketing is tough. Building something new is always devoid of oxygen at first. There is never momentum until we create it.
The cool thing of course, is that it can happen and does, every single day, and changes the market and potentially our fortunes along with it. .
My last post, “Marketing Matters…” was a primer, and a reminder that marketing, as a mindset, is the other side of the market coin. That marketing is part of what you build and how you sell, and the interpreter between what you so believe to be true and what the market comes to adopt.
This post is a further nudge to all of us.
That value is there to be sold, not simply discovered. That just putting it out there is a non-starter.
That you need to create a common ground where selling what you believe on your customer’s terms is key, and that listening to their response, not asking for their approval, is how you create a new market reality with yourself firmly entrenched as part of it.
I’m a believer that the market is always right.
This doesn’t mean that the market knows what it wants, nor that you don’t have to sell smart and hard, and often take huge, gut-directed leaps of faith to nudge it in your direction.
But it is the only proof that matters. It’s the playground where it all happens.
I’m a believer that marketers, at their best, are the practitioners of market dynamics. Their job is to understand that consumer behavior is the atomic element of any market, and the key behind every transaction. This is expertise and gut talent you need on your team.
Marketing, as a point of view and a mastery of skills, is often misunderstood and invariably butchered by definition.
What marketing does is simple to phrase–working the world from the market side in—but just plain difficult to do, and beyond challenging if you don’t have the DNA for it.
–>Marketers work the space between what customers feel they are buying and what the company thinks they are selling.
–>Marketing’s goal is connecting the right customer to your product in the most effective way at the most opportune time.
–>Marketing’s secret sauce is aggregating customers into groups, groups into communities, and communities into that ineffable broader market that really matters.
–>Marketers are obsessed with why customers should care enough about your product, your brand and your company, to share that connection.
–>Marketing knows that buying is an act of approval. Margins are a calculation, pricing as part of consumer value is market intuition.
There are scads of metrics that are used by marketing practitioners, many invaluable, though none of them matter at all if you don’t sell product and establish a brand with true customer value.
It’s a long journey to a black and white judgment as to whether marketing made it all come together. Most successful marketers are heroes or bums many times over in their careers for just this reason. The old Hollywood saying that every ‘movie executive will one day come to work and be fired’ could well apply to the marketing leader as well.
Marketing exists at the intersection of customer behavior, strategic intent, partnership with sales and product, and maniacal mastery of executional details.
If you limit marketing to execution alone, it will never be effective. It you remove it from tactics, it’s all just talk. If you are driven by anything other than getting customer behaviors in line with market intent, you are simply playing the odds. And if you don’t work hand in hand with sales and product, you will always fail.
It’s crazy stuff.
The intersection of soft sweeping strategies, deep value understanding, an infantry of special team skills and science, and hard visible tactics. But at the end–stuff either works or it doesn’t. Traffic pays off over time or it doesn’t. People come in the door with intent to buy or they don’t. Clever is stupid to many and funny is flat to more. And brilliant strategy at 20,000 feet doesn’t fill the sales funnel.
We judge marketing by countless data points daily–customer acquisition costs, buzz, lead counts, how the logo looks, brand value that drives a premium price—and the pride and joy that comes from a market that tips its hat to your product and brand behavior because you are a cut above.
It’s all about the obvious and what’s behind it.
Not simply about drawing customers to you (which of course you do), nor simply about pushing intent down the chute to the transaction (which we certainly do as well). Perfection can be mechanical, but it’s not what counts first. You can scale an undeniable core customer value by beating on a drum if that is all you have. But you can’t make people love you if they don’t.
It’s that’s simple.
The social web has invariably changed everything in our world including the gestalt of our markets and how we impact them. More profoundly than even the internet and basic ecommerce itself.
It’s evolved a new language for business communications. Handed the power baton to the customer and established socialization as the vernacular to how we market our products and manage our communities.
It’s a massive customer sandbox for product development and communications. And a place to play nicely with the market when you don’t really have all of your pieces in place. It’s made the unimaginable, possible.
It has also made us lazy and mistake activity as work at times.
The web, the social nets are not the market though they are critical ramps to it. Nor is social media the new marketing. Not in any way!
The web, although it has accelerated everything– including consumer evolution– is not the end game. The customer is, and they straddle the off and online markets naturally. So does marketing when it is cognizant of itself and its purpose.
There are people who are really skilled community managers, gifted mavens of the social channels, wordsmiths that wow us with how good we sound, scientists who dream SEO ratios and savant email strategists who are magicians at touching just the right person at the right time with a message that will get opened just when it should.
Every one of these activities will fail unless integrated into a coherent point of view. This can be discordance at a deafening din or perfection without self-awareness or soul.
Every one of these doesn’t matter unless they are strung together somehow under leadership that can orchestrate the nits and the message with the right cadence and crescendo.
Markets matter. In fact, as an aggregate of a possible consumer population, they are all that matters!
Marketing is the other side of the market coin. Inextricably intertwined.
It is the fabric of communications and connections that with lots of luck, creativity and deep craft, can take an idea and turn it into a household brand, can make the elusive, the almost ineffable, tangible and a new market reality.