Brass Tacks

The Sights and Sounds of Internet Week NY

A host of us at Horn are attending Internet Week NY this week. Here's a quick snapshot of what we've experienced on-site at the main area.

Need oxygen? Demand Media (client) has the set-up for that. It's great for hangovers, I hear.

Want some time in the spotlight? Yahoo is making that happen, as Horn's own Brynn (in the pic) takes her turn.

Yahoo and Big Data... interesting.

Another photo booth. Seems like a popular idea for conferences.

Makeup station to prep for the nightly Internet Week parties? Genius!!!

Brian Stelter and David Carr of the NY Times take the stage. My favorite quote -- David Carr (referencing someone else): "'I'm blowing up on Twitter.' So what? You and your friends like what you did." Second favorite quote -- David Carr (on his relationship with Brian Stelter: "It's like a buddy movie where the young stud kills the master." I'm probably butchering the last one. But you get the idea.

I hungry. This counts as breakfast.

My car is here. It runs on Rocket Fuel.

More recaps from Internet Week to come from me and the Horn team.

Cyborgs and Crossroads: Lessons from SXSW

Having spent 4 days at SXSW in soggy Austin earlier this month, I wanted to share some overall takeaways.

We Are All Cyborgs
Dictionary.com defines a cyborg as "a person whose physiological functioning is aided by or dependent upon a mechanical or electronic device." A common theme to Amber Case and Ray Kurzweil's keynotes was that we're already functioning cyborgs. That, even though the technology is not implanted in our bodies, the smartphones we carry around are actually extensions of our brains. Hard to argue with this, except for the fact that I'm not sure it's actually helping us. I guess that's the flipside of dependency.

Agile vs. Waterfall
This to me was the primary takeaway, and it's something I've been discussing a lot for the better part of two years. We live in a real-time world, but our processes and people aren't built for this. Traditional ad agencies/agency people and traditional marketing clients weren't schooled in real-time development. And those who were (like interactive and CRM folks) were generally not schooled in the development of a brand.

We are at an intruiging crossroads. How can we balance the need to be more nimble and reactionary with the desire to create and nurture a brand that makes an emotional impact? How can agencies and clients structure their fees and budgets to allow for real-time flexibility and not drive their CFOs crazy?

Shiv Singh brought up a point that illustrated this issue clearly. The week before the event, the KONY video basically took over the Internet. And yet, there wasn't a single panel about it, and frankly, barely a single panelist even mentioned it. Here we were at the cutting edge of tech and marketing, and even it didn't have the ability to react in real-time to transformative events.

Promise vs. Peril
The flip side of this is that we've become a very reactionary culture. There is very little research or reading done before people make a personal decision on what side they want to take on an issue, and then broadcast that stance to the world. Things go viral before people even know the whole backstory.

The Homeless Hotspots effort by BBH and KONY are both good examples. Could there have been a better way to execute the Hotspot idea, or some tweaks to have it work better? Sure. But the backlash against the idea, all the way to The Daily Show, seems very outsized given that they were simply trying to do something altruistic. The backstory behind Invisible Children and the large quantity of their donations that do not go towards helping solve the problem is another example. Everyone taking a deep breath and doing a little research seems like good advice in these times.

Make Your Own Adventure
Overall, this was a great event. Credit to the organizers of SXSW for what is truly a mammoth undertaking and pulling it off with very few hitches. I walked away from this year truly feeling that if you're in any form of marketing, be it advertising/client side/interactive/etc., you're crazy if you don't find a way to attend. There is truly such a wide range of panels and topics that no two individuals' journeys are the same. I spoke with people who purposefully avoided all panels and just focused on the networking opportunities. And those who tried to hit as much as they could logistically to soak up as much learning as possible. Both ended up winners.

But You're Not A Search Agency: Why We're Going to SES San Francisco

“Why is a communications firm going to a search conference?”

Fair question. After all, we’re better known for our work in PR, design and social media. Search Engine Strategies (SES), on the other hand, has a reputation for all things SEO, PPC and analytics. Different areas of the marketing spectrum for sure, but in reality, areas that are more closely aligned than you might think.

At their core, search, PR, social and design are all pieces of the same digital communications puzzle (see image). They’re not siloed specialties; they’re channels that overlap, interact and influence each other in tangible ways. The world’s most fantastically designed website will fall flat if the right messaging isn’t in place (or a lack of optimization prevents users from ever finding it). And the right PPC ad won’t mean much if conversion-ready traffic comes to your site, only to bounce because of a poor user experience or convoluted story.

That’s why we’re going to SES San Francisco next week – because the integrated nature of digital communications demands that we continually build our understanding of the nuances of each channel and how they interact with one other. We’re constantly striving to learn more because, regardless of how often and how drastically our industry changes, the fundamental objective of digital communications remains the same: to bring together discrete marketing channels – search included – to deliver cohesive, impactful brand messages.

Most importantly, we’re pushing ourselves to be on top of all of these channels because of what brand marketers are saying: According to our latest study with Kelton Research, nearly 70% of CMOs say they feel behind the curve when it comes to digital/interactive media integration. Let that sink in for a second. Seventy percent. That’s huge. That’s a ton of companies missing out on prime opportunities to engage with their customers.

It’s our role, therefore, to know how each channel can work together to maximize influence and effectiveness. Whether it’s site optimization tips, the latest in paid search tactics or cool developments in social/mobile technology, it’s all knowledge that fits into our digital communications wheelhouse, and that’s why we’ll be doing all we can to unearth and share relevant insights with you throughout the conference.

Hope to see you there!

Geoff Moore on The Future of Business

As part of our 20th year in business, we decided to launch "The Innovator Series": informal video chats with some of the industry's most prominent executives and influencers we've had the pleasure of doing business with over the years. Here now, the first, with Silicon Valley business guru and long time Horn Group friend Geoffrey Moore.

In this interview, I asked Geoff to look in his crystal ball and share his thoughts on what innovations have had the most impact on the future of business.  I agree when he says, "I think we still underestimate what the Internet has done to our world... and that it has become an emotional medium, not just an intellectual medium." In this interview he also shares the subject of his upcoming new book, as well as how the venture model is changing, how companies must evolve from competitive to collaborative cultures, the nature of bubbles, and how "crossing the chasm" has changed forever (among other topics!).

Thank you Geoff, your contributions to business and to leadership continue to shape the industry, you are an inspiration and a true visionary.

Fred Wilson hates marketing

For those of you who haven’t read it, Fred Wilson’s original post about marketing and his follow-up bug report are required reading.  Two posts generating over 800 comments show that Fred clearly struck a chord.

Personally having spent the last 15 years in the advertising industry and recently having made the jump to digital communications here at Horn Group, it definitely struck a chord with me as well.  But a different chord than what I read in most of the comments and in Mike Duda’s response.  I don’t think the issue is that Fred hasn’t seen the value of good advertising/marketing; I think he has actually struggled with the same issue that has plagued the industry since before John Wanamaker famously said “I know half of my advertising budget is wasted, I just don’t know which half”.  The issue is linking the effect of the advertising/marketing directly back to the business results and goal of the company.

In the last 20 years as the discipline of Account Planning has spread rapidly through the American advertising agency landscape, the desperate drive to prove ROI has yielded some fairly skin-deep solutions.   Many of the industry's brands track brand awareness, brand affinity, intention to buy, and they spend large quantities of money with big companies like Millward Brown to report back these data points and potential ways to affect them.

But very little headway has been made linking “the last mile” to borrow a telecommunications term.  The ability to tie these metrics back to the actual metrics that CEOs/VCs really care about at the end of the day (leads, sales, growth, etc) has not been accomplished.  So essentially, as an industry, we have left ourselves incapable of defending ourselves to attacks like Fred’s.  Thankfully most of the client-marketing world chooses to turn a blind eye to this weakness. 

So the challenge is who can solve this link first?  In our increasingly connected digital world there is a constant increase in trackable metrics.  It is becoming a “metrics arms race” and whoever lands on the moon first will arm themselves with a considerable weapon on the business development front.

Watch Out PR People, the iPad-Only Paper is Here

The buzz has been building and PR people have been wondering…when will News Corp.’s iPad-only newspaper, The Daily launch? The answer arrived today – The Daily will hit newsstands, or rather screens, on Wednesday, February 2. According to PC Magazine, News Corp. sent out launch event invitations to the press this morning. 

From a PR perspective this news is huge, offering both journalists and clients a new platform to deliver content. Given News Corp. and Apple’s collaboration, The Daily is sure to be heavy on graphics, audio and video. The delivery method will demand a different kind of content and journalists there will be hungry to satisfy the craving. PR professionals have an opportunity to work with clients to supply this more visual content, whether it’s video, infographics, photos or interactive data. The Daily will also demand PR professionals to rethink company story angles, what’s newsworthy and pitch/content delivery. The new platform also creates more demand for PR firms with interactive design and creative development capabilities. In fact, these changes could force PR firms to evolve out of their traditional roots. 

Aside from changes in content, The Daily and future tablet publications will allow PR professionals to access a specific audience segment – tech-savvy consumers and business professionals. Going forward (or until everyone uses a tablet), the delivery method of news will matter just as much as the content in terms of reaching your target audience. This is very exciting stuff, especially if you represent technology companies! 

What other changes will PR professionals need to consider as The Daily and other tablet-only publications hit the market? Drop me a line if you have ideas.  

 

Did Somebody Say Bubble? Bring It On!

It was the best of times, it was the worst of times. I was working in the tech industry during the first dot-com bubble... and it was AMAZING! There were tons of parties, opulent offices (some with shark tanks), companies getting funded and awesome giveaways at tradeshows. However, something this good doesn’t last and we all know how fast it popped. There are plenty of stories of how companies blew through $100 million in funding almost overnight – Boo anyone?

 

While it isn’t official, many are saying we are in the middle of another tech bubble – which is quite a contrast considering that we are still trying to get out of a recession. You would think that it would be the other way around. Regardless, I say bring it on. There is nothing wrong with funding being pumped into many companies in a few concentrated business segments. As much negativity as there is around bubbles – in this case, the tech one – I like to look at the many positives it brings:

 

+         Jobs – more VC money going into tech companies means money to spend on hiring. We’ve seen companies grow from 15 to 115 within the year. With more companies growing, there will be a more competitive environment for skilled workers, as well as new opportunities for college grads just getting into the market. Note that this is not happening overnight. However, considering the struggles the economy has brought the job market in the past two years, any sign of job creation is a welcome relief.

 

+         Boost to Other Segments – when tech companies thrive, so do other industries that support it. I’m talking about party planners, conference organizers, office suppliers, commercial real estate and even PR. We all benefit as tech companies have more money to spend to grow their companies. Now, it’s our job to support these companies to help them compete.

 

+         Lessons Learned – we all learn from mistakes and the biggest ones seem to have the most resonating effect. The first tech bubble is no different as entrepreneurs and business leaders were provided a great lesson on what not to do. The bubble taught us about irresponsible business management. The business leaders today who worked through the industry a decade ago have a better understanding on how to make a business successful, and how to manage it carefully.

 

There are many signs that this current tech bubble won’t experience a dramatic decline. People are smarter and can see where and when the fallout may come. As such, companies are being responsible with their spending and have made business decisions that protect themselves and their investors (steady growth, flexible cloud-based IT environments, hard line on contract negotiations). In the meantime, this is going to be a wild ride so put your seatbelt on and get your armor. 

 

C’mon FTC, What the Problem At? – Part 2

Last week, I took a look at why it was fallacy to compare the FTC’s Do Not Track recommendations with Do Not Call. This week, USA Today outlined how this could “revolutionize” the industry. Looks like the issue continues to boil as the Commerce Department is now jumping into the fray with its own recommendations, as reported in WSJ and NY Times. Its call to create a “Privacy Bill of Rights” for online consumers makes a lot of sense because it is centered on transparency, rather than blocking. It’s very similar to how individuals can request credit reports to see what financial companies see about them.

 

However, what would happen if the FTC succeeds in creating a do-not-track list? What would happen to the $20 billion online ad industry? Here are some predictions:

 

+         Re-emphasis on big media: Big media companies will be relevant again for their command of their audience. We’d see a shift to more “media” buying instead of audience, where advertisers will go to the people they trust… Gannett, NY Times, Time Warner, Disney… the names we all know and love. This will have resonating effects. Big media will have to adopt measurement practices that were more common in traditional media buying (consumer surveys), and companies that enable this could see more growth.

+         Consolidation of sites and small publishers: Smaller sites that previously had an effective standalone monetization strategy on selling audience could end up partnering with brand name publishers whose sales force can better monetize these sites by selling direct to advertisers. Large publishers will be more willing to paste their name on these small sites because of the need for more direct sales of inventory. Or these small sites could just go out of business.

+         Ad networks will still be around: Considering that very few people opt-out of tracking even when it is presented to them clearly, not everyone will sign up for a Do Not Track list. This list could still narrow the potential for ad network business, but there will still be enough spend in audience targeting that ad networks can still thrive – although there may be less than 300 of them after all is said and done. Additionally, the ones with higher audience reach could command a premium because supply could be scarce.

+         Ad networks get down with The Hill: Legislation is a long process and we could see more ad networks and other targeting companies use more resources for lobbying in order to protect their interests. The IAB is doing a great job representing the industry in DC, and we may see even more support for its efforts in the next couple of years.

+         More new segments: Online advertising will still have inefficiencies and there will continue to be new companies in new segments aiming to improve it. If the industry can’t target audience, it will target something else. We’re already seeing a renewed effort in deep-packet-inspection among cable companies. Content- and semantic-based efforts from folks like ContextWeb, OpenAmplify and Peer39 are continuing to improve.

 

The online ad industry has constantly proven that smart minds will find opportunities and problems to solve despite the enormous challenges of the business environment. Despite what a Do Not Track list could do, entrepreneurs, technologists, and VCs will find ways to innovate and capitalize. Therefore, we’ll all still have jobs… I hope.

 

Changing Reading Habits Mean New PR Tactics

Today I came across an excellent 2010 trend story by Richard MacManus of ReadWriteWeb. MacManus makes the case that online reading habits have changed during 2010 due to Web trends such as mobile apps, real-time Web and social networking developments. If he’s right (and I do think he’s onto something), then PR tactics should also change. 

One of the best examples has to do with Facebook and the news search functionality they added in September. Through Facebook’s basic search you can find widely “liked” news from all kinds of media outlets. The new feature has to make Google a little nervous because aside from pulling up stories, Facebook’s search vets results with what people “like.” So how can PR capitalize on this? 

PR pros should recommend their clients add “like” buttons next to coverage their company hosts in the online newsroom. Having “like” buttons next to coverage is just another touch point and way to increase visibility. It also makes it that much easier for people to share company content via Facebook. 

What other PR tactics come out of MacManus’s observations about 2010 reading habits? Love to hear your thoughts. 

 

 

 

NYC: The City That Never Sleeps...on Innovative Companies

Attention, future Web moguls: New York City is the place to be!

Well, we at Horn Group could've told you that—we've repped some fantastic start-ups in the NYC-area during our 19 years in business. But so also says Kevin Ryan, founder and CEO of Gilt Groupe, who spoke to a packed house of tech professionals last night at HB Burger in Midtown Manhattan as part of The Masters Series sponsored by NYCTechnologyLadder.

Ryan's focus was on nurturing innovative companies in NYC and what that specifically means for tech careers in the future. His discussion was driven by several key observations he has made through his time as an entrepreneur which he hopes dispells some of the myths surrounding starting up a business in the Big Apple.

Most notably, there is a fundamental change in how venture capitalists are perceiving the region. Traditionally, places such as San Francisco and even Boston have seen the lion's share of VC funding, but things have levelled off a bit recently.

"New York City has the necessary infrastructure and ecosystem now," said Ryan, who also heads the NYC-based AlleyCorp, a network of Internet sites which includes The Business Insider, Gilt Groupe, ShopWiki, and 10gen.

He credits the shrinking gap to a second generation of investors who have proven that creating innovative Web-based businesses in the city is very possible. This, in turn, has attracted talent from Silicon Valley to make the move to Silicon Alley, as well as augmenting local interest in setting up shop in New York.

He pointed to the success story of Michael Walrath, former CEO of Right Media (headquartered in New York City), who was part of his initially small team at DoubleClick before defecting and starting the competing online advertising firm. Right Media was acquired by Yahoo in 2007 to the tune of $720 million. (Right Media is a former Horn Group client.)

Challenging start-up companies to acquire top talent, Ryan also told potential employees to not overvalue a salary and a position within an organization in its nascency, nor overvalue the sector within which that company resides.

"It's not only better to be in a company that is growing, but success is more fun and rewarding as well," he said, adding that if someone is not willing to share the pain of creating and growing a business, he or she probably isn't the right person anyway.

Other key observations he made during his discussion included:

• People overly look at what is a great trend; they should focus on what is a great company.
• A product is only good when you can get people to tell their friends about it.
• There are opportunities of varying sizes out there for successful new companies, simply by cutting into a $1 billion or $15 billion industry with a hyperspecialized business.
• If you have to do sophisticated research about a sector, you're not adequately knowledgeable with that industry. Stick with what you know.
• Sometimes you don't even need a good product, just a great and dedicated team.

Being a PR agency that works with tech businesses of all stripes (on both coasts and in between, even!), we can certainly attest to many of the points brought up during Ryan's thoughtful 45-minute discussion. Feel free to add your perspective on NYC-area start-ups and tech careers of the future.

Operation Backpack Deploys in HGNY Office

Don't you love New York in the fall? It makes me want to buy school supplies. I would send you a bouquet of newly sharpened pencils if I knew your name and address. (You’ve Got Mail, 1998)

There’s something about that moment in the late days of August in New York when the seasons begin to change, the waning days of summer giving their last warm hurrah as the hot, damp air surrenders to a brisk, cool breeze that cools the evening. Tourist crowds ebb and are replaced by bustling groups of schoolchildren, walking in clusters or accompanied by their parents hand in hand to school doors. This is the beginning of fall in New York.

With Labor Day fast approaching, our New York office wanted to do something special to give back to the community, something that would allow us to come together as an office and contribute something special to our city before fall began. When one of our employees mentioned Operation Backpack, which allows donors to assemble backpacks full of school supplies for needy New York kids, we knew it was an instant fit.

Employees throughout the Horn Group office brought in reams of paper, boxes of pencils, scientific calculators and more, and set to filling four backpacks to the brim with brand new school supplies for a student who couldn’t afford these necessities themselves. Operation Backpack designates four different age ranges of recipients to choose from, and when we heard that the high schoolers had the most need for supplies the decision was made. High school is a tough enough time—cliques! awkwardness! pimples! –and we figured if we could ease the burden by helping these kids be well-prepared for class, it might help them be better prepared for their day.

Once the backpacks were finally assembled, it was off to the Operation Backpack headquarters office where they would be distributed to their designated student. Admittedly, it almost felt like sending a child off to school when we dropped off our bags, but it was so exciting knowing our shiny and new packs would shortly meet their new owners, ready to embark on a full school year’s adventure.

It was such a treat working with Operation Backpack, and we can’t thank them enough for their hard work organizing all these donations and for providing our office the opportunity to give so specifically to our community.

Turn and Face the Change

Have you ever felt like there is so much change (good, bad, or otherwise) swirling around you that you can’t begin to compartmentalize or process it all fast enough?  
 
Almost everything and everyone we know is in some kind of state of flux or transition.  The degree of unpredictability and uncertainty in the market is like none I have never witnessed before.  The amount of doom and gloom projected by the media is both a reflection of reality and a game of misery loving company.  It breeds this mentality of, well, if we suck its ok because everyone else sucks right now.  
 
That doesn’t work for me.  In my office is a lithograph of three eagles on a totem pole looking out in different directions.  I got it in Sooke Harbor, British Columbia many years ago, on the day I discovered I was going to become a mother for the first time.  Being somewhat surprised, I thought, this is fitting, its time to embrace the changes about to occur in my life.  That picture inspires me, gives me confidence, gets me through just about anything, and it energizes me now.  But I digress...
 
There are many many companies that not only survive, but thrive, in economic downturns, and emerge stronger than they ever have before.  It’s a hackneyed phrase, but with change comes opportunity.
 
 And boy are we facing change right now:  massive change in our country, leadership, in the technology industry and all other industries across the board, and in our own communications industry. For some, change can be a very scary thing.  For others it can be exciting, even energizing.   

It is our job as communicators to be change agents.  On some basic level, we make change okay for people because we help them understand it in a way that makes sense to them.   As Americans and as communicators we are free thinkers and free speakers.  
 
Now, more than any other time in our short history, is the time for us as communication professionals to help people understand how change will affect them, improve their lives, work environments, businesses, institutions and governments.  
 
Now is the time to take the power of the emerging social world along with the beauty of design and application of technology to evolve our PR industry to a whole new dimension.  
 
Now is the time for us to really make a difference, to embrace all that change and slowly, gently, shape our own industry.    
 
On a macroeconomic level, change forces walls to come down, creates an atmosphere of greater openness and dialog, and by the purest, most natural process, fosters a new social, much freer communications environment.  What an enormous responsibility we have as communicators to play a role in that transformation!  
 
We are creating the very platforms by which this country and all countries can participate.  We must help to rebuild a more powerful and sustainable economy by communicating how new models will work better, by listening to and shaping opinion, thinking positively and creating value.  

The train has left the station for a great destination in every sphere of our lives.  The ride may be bumpy and sometimes we may not be able to see where we are going. But we are surely smart, we are innovative, we will get there, and we will prevail.  This is good work, it is hard work, and it is absolutely necessary.  
 
Who was it that said “the journey is the reward”?  Let’s get to work and turn and face the change.  

Sabrina