Morettini on Management

General Management and Marketing Advice for Software and Tech Companies

Category: Social media

Will Web 2.0 Lead to a New Bubble?

So there’s a new “next big thing” happening in the high tech world–that’s feels very, very familiar. In fact, it seems a lot like “déjà vu all over again”, to quote one of my all time favorite philosophers–Yogi Berra. I’m talking about the Web 2.0 phenomenon. The question I present is–what’s the difference between Web 2.0 and 1.0? Although there are obvious differences technologically, and there are a few wildly successful companies following a Web 2.0 style model–my reply is “not a lot” is different.

SOCIAL NETWORKING IS THE BATTLEFIELD

The recent buyout of YouTube by Google for roughly $1.6 billion dollars is what finally set me off to write this article. You see, this is EXACTLY the type of transaction that was representative of the bubble years. An overnight success, with a lot of eyeballs (ok, TONS of eyeballs!) and essentially NO revenue turns it’s twenty-something founders into near billionaires, just months after starting the company. Ok, it was 2 years, but you get the point.

Now we haven’t seen a transaction quite like this in a long time, but they seem to be picking up steam. MySpace was snatched up similarly by Fox for about a half a billion, also with almost no revenue at the time. Facebook also looks like it will be sold soon, to one of the new or older media companies, for a big chunk of change.

What’s happening is the Internet market leaders such as Yahoo, Google, Amazon, Microsoft/MSN, and older media companies trying to keep up, like Fox and Time-Warner–are fighting to get and retain the lead in all the important mass market Internet categories. The hottest one at the moment is referred to as “Social Networking”. The idea is that in Web 2.0, the user is much more of a producer of content in addition to being a consumer of it, so that the idea of online users as passive consumers of content is now passé. This new wave is hitting big with sites that are getting huge growth in traffic, like YouTube and MySpace, which enable their users to produce and publish their own content. But how much money’s really in it?

All the big players are afraid of missing this wave, and like most big companies with respect to societal shifts–have missed the boat completely, or have fallen behind their more innovative startup competitors. And yes, I now categorize Google as one of those less innovative, bigger companies. As much as they’ve tried to avoid that fate, they’ve grown very big quickly–and haven’t had a home-grown hit for a while in “Internet time”.

EYEBALLS FIRST, PROFIT LATER

What strikes me as so familiar about all this is that social networking from Web 2.0 looks A LOT like the “Communities” phenomena of Web 1.0. Both represent an attempt to “get the eyeballs first” and “we’ll figure out how to monetize them later”. Both are based upon the idea of getting people together on a user-driven site, as opposed to selling a specific product or service. And both are driven by a business model where the main source of revenue is expected to be online advertising.

Now I happen to believe that YouTube and MySpace will end up being able to monetize those eyeballs. But does that mean that everyone will?

Some of you might say that the difference is that online advertising has been legitimatized by Google’s unbelievable success with contextual PPC adverting, with their search engine Ads and Adsense network. That success is irrefutable. But does that mean it will go on forever, and that the public will tolerate text ads (or something even MORE invasive) littering nearly every square inch of unused webspace? Personally, I don’t think so. There is definitely a place for online advertising, and I expect it to continue to grow robustly for the foreseeable future. But everyone seems to forget that online banner advertising was also highly successful at the beginning of Web 1.0–until the public got tired of it, and tuned it out. Advertising revenue online dropped like a rock, and many companies were destroyed in the process.

Google has done a great job of improving on the online advertising model so that Advertisers became successful, allowing Google to ride on that success by taking a nice cut of the take. But even today, it’s getting more difficult all the time to make PPC campaigns pay off. The days of easy direct conversions to sales are gone in most markets, and using PPC as a lead generation tool–while still good business for many–is far less compelling. Will the PPC market leaders continue to grow fast for a while longer? I’m sure. Will it flatten out at some point in the medium term? I’m sure of that also. Will most of those companies that are raising huge amounts of venture capital, with online Ad-centric business models, find the same level of success? I’ll bet you everything in my bank account against this. In fact, I think that there is room for surprisingly few additional big players who DEPEND upon online advertising for their success.

PUBLIC MARKET EXCESSES

The other aspect that seems to distinguishes the Web 2.0 wave from Web 1.0 history is the lack of overheating of IPOs. In fact, the IPO market for Tech companies overall still hasn’t really recovered from the Web 1.0 bubble. In addition to the burn marks that remain on Wall Street’s hands with respect to Tech companies, SARBOX has also made going public less attractive to all growth companies. Exit strategies are more often based upon a sale than an IPO these days. But two things here: just because it hasn’t happened yet–doesn’t mean these IPO excesses won’t reappear later in the cycle. I believe we are still early in this one. Secondly, I wouldn’t preclude some type of financial bubble, even without public IPOs of nearly no-revenue companies like in 2000. Anytime hype over-inflates the value of assets, the downstream consequences can be severe. If bidding wars by the established companies get too out of hand, it could still end up having a real negative impact on the stock market and the high tech business environment, down the road.

HISTORY HAS A WAY OF REPEATING ITSELF

My final thought on this topic is that in the High Tech world, there is almost always more money chasing the “next big thing” than can receive an adequate return. This inevitably leads to many excesses, including a level of hype that can only lead to disappointment, for those who get in late or with marginal business plans. The result is a boom-bust cycle that we see re-enact itself over and over again. My thesis is that “eyeballs first, figure out how to monetize later” has always been, and always will be a flawed approach, for all but the fortunate few. If you’re buying into Web 2.0 in a big way, Caveat Emptor–Let the Buyer Beware. A history lesson can sometimes be the most prolific forecaster of all.

Will there be a Web 2.0 bubble, much like the original dotcom bubble? It’s too early to tell. But as I’ve outlined above there are some hints in the news that a repeat might not be that far-fetched.

That’s my take on Web 2.0–what’s yours?

Phil Morettini
PJM Consulting
http://www.pjmconsult.com/

Online Marketing Widgets

In this article I thought that I’d provide an update to my online marketer’s bag of additional free tools that I’ve run across on the Web–and which I found useful:

Domain Age Checker -The age of your websites domain is factored into the rankings of some search engines. If you are thinking about buying an existing domain, this can give you an indicator of its age. Older domains get a slight edge in the search engine rankings.

Keyword Cloud – I found this one to be really neat. It provides a graphical representation of the keywords on a website page, as well as a listing of the frequency of keywords in tabular form. This is a really good starting point in evaluating an existing site relative to target keywords.

Future PageRank – Another unique little tool. This one queries the 10 Google Data Centers, to see if a particular page is ranked differently on any particular Google server vs. the rest. If there is an outlier, it could indicated that there is an upgrade or downgrade in PageRank coming for that webpage.

Bid Stats
Bid Stats is a tool to automate the monotonous task of checking keyword prices. It queries the Overture Bid database and compiles useful statistics to help you make decisions on keywords, such as if you want to bid on them, or develop content around them. Although the numbers will be different for Google Adwords (almost always higher), it still gives you a good idea of the competitiveness of your target keywords in both the PPC and SEO world. You can enter up to 15 keywords to compile the statistics about, and simply enter one keyword or phrase per line.

Website Promotion and Targeted Link Popularity – This is a nice tool which assists you in finding other websites which could provide high value to your site, if there was a backlink listed to your site. You simply input up to seven websites which are your competitors, have similar visitors to your site, or offer similar but non-competing products and services to your site. The tool returns to you a list of sites that are linked to at least two of the sites that you input. This is a great way to find sites that you can pursue links on, either via PR, link exchange, or some other strategy.

That’s what’s new to the toolbag this month! Drop me a note, or post a comment and let me know if any of these prove useful to you.

Phil Morettini
PJM Consulting
www.pjmconsult.com

Behavioral Marketing – What’s all the Fuss About?

There’s a “new” form of online marketing that’s all the rage, and is getting a lot of press these days. Different people call it different things, including “Behavioral Targeting”, but for the purposes of this discussion we’ll call it “Behavioral Marketing”. The most interesting thing about this technique is that it real isn’t new at all.

Let’s talk about what Behavioral Marketing is, and isn’t. It’s not any great new marketing theory or technique. It’s really just another form of database or segmentation marketing. Marketers have been attempting to categorize and segment potential customers since the beginning of the free enterprise system. What’s really new and exciting about it is that it has couple age-old marketing techniques with web technology that enables the marketing segmentation to be applied more efficiently and accurately. As I stated in the headline, it’s all the rage, being used by brick and mortar companies like Best Buy in store design, and pure web companies like Yahoo, who utilizes their vast portfolio of free services to get a handle of what Internet surfers are really up to.

My personal focus is on Technology and Software Management and Marketing Techniques. Behavioral Marketing isn’t a technique specific only to the market served by PJM Consulting, since it is broadly applicable to any company marketing products or services online. But my client base of software and technology companies should have a special interest in this topic, since they tend to be early adopters of leading edge technologies, such as utilized in this technique.

BEHAVIOR, NOT APPEARANCES OR LOCATION

In the context of online activity, behavioral marketing is the technique of targeting consumers based on their behavior online, rather than by simply the content of pages they visit, or the demographic characteristics of the prospect. For example, the prospect’s surfing habits might cause them to be grouped into a category of active car shoppers, or a different category of engaged women planning a wedding in the very near future–or both. These categories are constructed using information compiled from both clickstream data and IP information. Behavioral marketing networks with thousands of participating websites are being developed, which allow marketers to build databases that characterize online surfing behaviors across a wide spectrum of websites, in near real time. Marketers using behavioral techniques can then target these consumers by serving ads tailored to the predefined segments or categories. This is an example of a classic marketing technique that is made much more practical by Internet technology. The Internet isn’t essential to the practice of behavioral marketing, but it can greatly add to its effectiveness.

HOW IT WORKS

So how does it work? Generally, you’re being tracked as you surf the net using Adware, or tracking cookies on your computers. Adware is a dirty word to a lot of people, and is often lumped in with Spyware. What’s the difference? As I’m defining it here, Adware has no “mal intent” like some Spyware, and is fully disclosed and consented to. It is used strictly to track behavior and activities online, for the purpose of categorizing the surfer into a preset category, then serving an Ad targeted to that group. Not to steal your identity, or empty your bank account (at least not without your knowledge!).

IS IT A GOOD OR A BAD THING?

So is this new Behavioral Marketing stuff a positive development? Like most things in Marketing, that’s in the eye or the beholder–and the hands of the user.

Extreme voices on the user side of the privacy discussion will object strenuously to anything that has even the slightest privacy implication, no matter how benign. It doesn’t matter whether the risk of abuse is slight or non-existent; they will toll the bell of alarm and protest vigorously. These folks are against just about any form of marketing that is proactive. There feeling is that marketers must wait for people to come to them. If their logic was followed, a great many innovative, productive technologies would never have found their way into common use. Thankfully, our free enterprise system isn’t that restrictive.

On the other side of this equation are the abusers of technology (I refuse to call them marketers), who will take any innovation and unscrupulously attempt to use it to their advantage–consequences be damned. Email Spammers are the most recent and dramatic example of this genre of fast-buck artists. One of the great innovations in communications in our time, email is perfectly suited to direct marketing, when used properly and responsibly. With proper targeting and a reasonable approach to permission, email marketing has strong benefits to both the marketer and the consumer. But the Spammers repetitively stuff our in-boxes with the same useless drivel, until this elegant technology becomes practically unusable for its intended purpose. By doing this, Spammers turn the flabbergasted public against even legitimate forms of email marketing, wasting a huge opportunity to conduct efficient commerce for us all.

WHAT’S THE VERDICT?

So what will it be with Online Behavioral Marketing? Will it be used just for good, or for evil as well? Since this form of marketing is really just getting started, it remains to be seen. But if history is a guide, there’s a good chance it may end up being both a blessing and a curse.

What’s your position on Behavioral Marketing? I’d like to hear your thoughts.

Phil Morettini
PJM Consulting
http://www.pjmconsult.com/

Maintaining and Editing your High Tech Blog

Blogs have become important marketing tools for many companies these days. Of course, being in the forefront of technology means that software and tech companies are early adopters of business Blogs. Whether it’s for marketing purposes as an online newsletter, to obtain feedback from the customer base, to have dialogue with potential clients, or to simply add interesting content to your website thereby increasing its “stickiness”, business Blogs are all the rage.

It’s challenging enough to come up with the content to include in your Blog. What you don’t need is difficulty in implementing that content, quickly and easily, into your Blog.

Unfortunately, some of the standard tools provided by the Blog software companies and services leave a bit to be desired. I use Blogger by Google as the infrastructure to my own Blog, Morettini on Management. I am generally happy with Blogger, as it has most of the features to meet my needs, and is generally stable.

But one area where Blogger is weak is in tools for creation and editing of Posts. The biggest problem is that the tools are browser-based. That’s a good thing in general, but when I’m trying to quickly write a serious document of any length, the lag time between typing and appearance on the page can be maddening. In addition, the editing tools aren’t exactly “feature-rich” with respect to formatting issues. For this reason, I prefer to use an offline editor, to create and publish my posts.

Luckily, there are some add-on tools out there to make your life easier. I use an MS Word add-in provided by Blogger itself, called Blogger for Word. It integrates in smoothly with Microsoft Word, and adds a few menu items to Word which enable “one-click” posting. Using this tool, I can create Posts like I do any other document in this venerable word processor, and simply post to my Blog with a single click. All the formatting that I use in Word is maintained when the document is posted to the Blog. It works great!

If you don’t use Blogger, there’s also a similar, but more general tool available: w.bloggar. This tool is an editor that can be used to post to a number of the well-know Weblog systems that are available. Currently, w.bloggar is compatible with all Weblog Systems that implements Blogger API, metaWeblog API, MovableType API and b2 API; all based on the XML-RPC definition. I haven’t used w.bloggar yet personally, but it looks pretty slick.

Both Blogger for Word and w.bloggar are available for free, although w.bloggar appreciates donations. Try them out and send me your own review.

Phil Morettini
PJM Consulting
www.pjmconsult.com

High Tech Article Marketing on the Internet

Many companies these days have a focus on Online Marketing, for pretty obvious reasons. The Internet has grabbed a hold of most markets, and is now the main source of information in most industries. In many it has also quickly becoming the actual center of revenue, via e-commerce activities on company websites and online retail sites.

But like most marketing methods, competition quickly clogs up the available channels of reaching customers. This is especially true for the fast moving software and high tech markets that PJM Consulting addresses. Time to market and to the customer’s wallet is at a premium, when every company is attempting to establish themselves as the leader of an embryonic market. As a result, it’s getting harder all the time to reach the top of the organic search engine listings, and the cost of an Ad in PPC engines such as Google Adwords and Yahoo Overture continues to climb. Downloadable white papers work in B2B markets, if they are well targeted and written, but there is plenty of competition these days in this area as well. And most of you are aware of the declining economics of direct email, with the issues of SPAM and blocking. So folks are constantly looking for a new channel to break through to their online prospect base.

One of the hot areas of Online Marketing currently is what’s being called “Article Marketing”. It’s a new twist on a very old marketing strategy: Write articles as an expert on your industry. So why should you consider an online article marketing campaign?

BUILD CREDIBILITY
As an expert, there are obvious benefits to building your own, or your company’s, credibility in the marketplace. If you are considered an industry expert, there is a definite halo effect for your company’s products or services. They will take on a “premium” feel to potential users in the industry. You and your company will become better known, more highly respected, and will be considered first, when potential customers are looking for the type of things that your company offers.

CONTENT FOR YOUR OWN WEBSITE
After credibility, this is the second most important reason to consider writing articles. The search engines love information. Articles discussing solutions to problems, or providing expert information is valued by the engines—and will be indexed quickly and ranked highly as a result. As a matter of fact, “commercial” sites appear to be losing appeal as the search engines seek out this expert content. As for publishing, the search engines love Blogs, which is just a structure to write and publish articles in. A Blog can be an excellent addition to your site, and will make your site much more attractive to the search engines as an information source. If you do use Blog software to publish your articles, make sure the Blog is hosted on your domain, to ensure that the full benefits of this expert content accrues to your site, driving its position higher in the search engine results.

TRAFFIC BUILDING FOR YOUR WEBSITE
In addition to creating content for your own site, it’s also a good idea to publish articles elsewhere on the web. Not everyone is using a search engine to find what they are looking for on the web, and even if they are, your own site will not rise to the top in every search (unfortunately!). So I highly recommend publishing your articles on other sites, with a link back to your own website included in your author bio at the end of the article. There is a whole cottage industry that has popped up of article submission websites, software and services to assist you in this effort. People clicking on these links will build additional traffic to your site.

SEARCH ENGINE OPTIMIZATION THROUGH BACKLINKS
My fourth reason for writing and publishing articles also revolves around the links established on other websites where your articles are published. We call these links “Back Links”, because they link back to your site. In addition to providing traffic back to your website directly by people who click on them, they provide another very important function. Search engine optimization for a website is very complex, and is constantly changing. But you can boil it down to two major areas—Content and Back Links. If you have great content on your site and lots of other sites are linking to yours, you will rank high in the search results, and get a ton of traffic as a result. All of the links to your website, that appear on third party websites as part of publishing your article broadly on the Internet, increase this “links score” that is so important to search engine ranking.

ARTICLE MARKETING TECHNIQUES
As you can see, Internet Article Marketing can be an excellent technique for building traffic to your high tech company’s website. There are many ways to proceed. Here is one step-by step approach:

  1. Create articles of interest in your company’s industry. Write them like you are submitting them to an industry journal—then review the article to ensure it is keyword rich.
  2. Publish the articles on your own website. Blog software, available freely on the Internet, is an easy publishing tool. TypePad and Blogger are two of the more popular, but there are many others.
  3. Feature the articles in your company newsletter.
  4. Leave newer articles solely on your company’s website for a period of time, as exclusive content.
  5. Submit older articles broadly on the Internet, using Article Submission software or a service. Ezine Articles, Submit your Article, and iSnare are services that all work pretty well. There are again many choices.
  6. Be patient—one article may not do much, unless you are very lucky. As your base of articles builds over time, you should see a definite positive effect on your website traffic.

That’s my primer on Article Marketing on the Internet—did you find it useful? Send me a note if you would like to discuss.

Phil Morettini
PJM Consulting
www.pjmconsult.com

Search Engine Optimization

Marketing on the Internet has been quite a hot topic for some time. That means different things to different people—Banner advertising, pay-per-click ads, email newsletters, direct marketing via email, affiliate marketing, Electronic Press Releases, etc. Any and all of these may be an important part of your optimal online marketing mix, depending upon the specifics of your business and resources.

However, there is one online marketing method that nearly EVERYONE should be pursuing. In my consulting practice at PJM Consulting, I find that too many technology companies are not actively utilizing this marketing method, and it’s very surprising to me. I’m referring to Search Engine Optimization (SEO).

SEO is the practice of modifying the content and infrastructure of your website, to ensure that the Search Engines find it, when someone enters a keyword search that is highly relevant to your site. This just doesn’t happen automatically—unfortunately.

Offline Marketing Analogies

Most of you are familiar with the use of Press Releases and magazine advertising as “staples” of technology marketing. Of the two, Press Releases are the “free”, and more credible method of publicizing your products or services. There is no guarantee that a press release or a story derived from it will actually be published, but if it is, the credibility is very high with the reader—and of course the expense may have been very low to garner this exposure. Magazine advertising, on the other hand, is guaranteed to give you exposure, but is much more expensive, and somewhat less credible with the reader, than PR is on the same topic.

I like to use an analogy from offline marketing to explain the importance and relative position that SEO should take in your marketing mix. In the online world, you can think of SEO as the PR of the Internet, while Pay-per-Click advertising such as Google Adwords or Overture is analogous to the magazine advertising that appears in the offline media (more on pay-per-click advertising in a future column). SEO appears in the “Organic” listing when doing a search in an engine like Google or Yahoo, and as a result it is highly credible. Tremendous amounts of targeted potential customers can be driven to your site via Search Engines. This is a competitive issue as well—I guarantee that your savvy competitors are investing in this area.

As long as I’m using analogies, here’s another way of looking at this topic: Would you build a beautiful retailer store out in the middle of a cornfield, 50 miles from the nearest consumer? I hope that any business person reading this would answer “No”. Yet, I find many senior executives in High Tech companies are oblivious to the strategic importance of having a website highly optimized for Search—which is the Internet equivalent to “Location, Location, Location” in the retail business world. Websites are usually built by Graphics Designers who put great effort into the “look and feel” of the site (the beautiful retail store)—and NO effort into enabling someone to find the site through search engines (built in a cornfield).

The most recent research on SEO says that appearing among the first six sites in the results of a search can lead to enormous increases in traffic to your site. For searches containing the targeted keywords specific to your business, getting your site to appear in the top six sites of the results should be your goal. If you are able to accomplish this, the visibility among your target customer will increase substantially—possibly exponentially.

Now, I don’t want to pretend that maximizing your results is easy. But at least the initial steps that you should take are not that hard. I believe that this important topic doesn’t get the play it should in executive suites, because of a “fear factor.” SEO is viewed as a highly technical field, understandable only to “geeks.” A lot of times, people just don’t know where to start. But once you delve into it, most of the steps are pretty straightforward.

So how should you go about enhancing SEO on your website? Just like most other things in technology marketing, it depends upon the skills within your company, the competitiveness of your marketplace, and the company’s financial resources.

It’s Important

To go back to our example in the offline marketing world, how people conduct their press relations varies widely. Companies with large financial resources, as well as fast-moving & competitive markets, often hire external PR firms to spearhead their campaigns, with retainers of $10-15K/month or more. For these companies, having outside experts focus on this important activity is viewed as critical, and isn’t a problem within the budget. Other companies feel more comfortable hiring an in-house PR person, both from a productivity and budget perspective. And smaller companies can’t hire PR expertise at all—but they know they need press coverage, and still find a way to write press releases and promote them to the important editors in their vertical market. Because they realize that it’s IMPORTANT.

SEO is the same. If you are in a highly competitive market and are flush with money, it may make sense to hire one of the hundreds of agencies focused specifically on search engine marketing, to optimize your site. Or you may have a webmaster in-house that has the skills and interest to take on the task. But even if you have no in-house expertise, and can’t afford to hire any—by all means, do it yourself. Buy an SEO book or one of the modestly priced SEO software packages available to walk you through it. Do it because it’s IMPORTANT.

What NOT to do

The one thing I DON’T recommend is to just “throw money at it,” and walk away. SEO is an on-going, critical activity that needs to be managed for the long haul. It is important that someone at a senior level in-house gain enough knowledge about what is important, to be able to monitor it from a management perspective. Otherwise, you risk really going off track, regardless how you decide to handle the implementation. In particular, there is a tendency to simply “outsource” activities that management isn’t comfortable with. The problem is that there are a number of “quick fix” artists in SEO, who claim to bring you a lot of traffic fast. They use questionable practices that can get you in trouble with the Search Engines, and in the long run have the opposite effect from what you are seeking. If you don’t have a senior manager that understands the implications of what’s being done, you can get burned.

Recommendations

So let’s say that you’ve decided to “do it yourself”, or at least want to get a basic understanding of the SEO process. Where do you start?

Here’s what I recommend:

  • Buy and read a popular Search Engine Optimization or Search Engine Marketing book to become conversant
  • Purchase one of the Search Engine Optimization Software Packages which are available for a few hundred dollars—I use Web Position from Webtrends

Once you’ve become familiar, here are the important basic steps that you’ll want to make sure that you understand:

  1. Select keywords to optimize you site for, ones that are important to your potential clients and your business. Look at your own website and other marketing materials, look at your competitor’s sites, and use tools like WordTracker and the Overture and Google Adwords Keyword tools. This is a critical part of the process—you need to select keywords that are both relevant, and not so competitive that you are still able to “own them”—in other words, appear in the top 6 listings when they are searched.
  2. Make sure that your Page titles and Page URLs are rich with the selected
    keywords. This is very important, and is why new websites should be optimized for search, when they are initially built (which usually doesn’t’ happen, unfortunately).
  3. Include keyword-rich “link text” in your content, and make sure to label all images with keyword-rich text.
  4. Make your main body text keyword rich—and probably more text intensive than your graphics designers would like. Even though the designers (and senior executives) may think its ugly, search engines love—and only understand—text. Some engines will even completely ignore pages with less than 300 words. If your pages appear too “clean and pretty”, there’s a good chance they will be ignored by the search engine bots when they do their indexing. So you need to make some compromises between SEO and look and feel.
  5. Start a “never-ending” campaign to get external websites to create links into your site. This is also critical, because search engines use this is a measure of how “important” your site is, relative to your competitors. The more relevant and popular the linking site is, the better, but any link is better than no link. PR is a great way to build relevant links—but you can also have a clerk trolling for simple opportunities to list your company’s website, in the myriad directories available on the Internet.

SEO is actually a very complex field with lots of important, but mundane technical details. Much more can be done past this process to optimize your site. But these are the basics—if you run through this process, you will as a senior manager, be much better prepared to buy external SEO services, or hire people for your internal staff. As a C-level manager, you wouldn’t feel comfortable being ignorant as to how the PR process works, would you?

In the Internet age, neither can you afford to be ignorant about SEO!

As always, your feedback is welcomed.

Phil Morettini
PJM Consulting
http://www.pjmconsult.com/

Promoting your content through RSS feeds

To many of you, this article will be preaching to the choir. In fact, quite a few people already read these articles via an RSS feed in a newsreader, browser, or on their Google, Yahoo or MSN personalized homepage. If you haven’t already done so, you can subscribe to my articles simply by clicking on one of the icons on the right side of the Morettini on Management Blog, just below “Google News” link. There is an icon for a generic XML feed, and also simple icons for adding my feed to your Newsgator Reader, or your MSN or Yahoo personalized page. There’s even a way to have the feed sent to you instantly via email as soon as it’s published, via the email subscription box provided by Feedblitz. So you can play around with receiving an RSS feed, right here on my site.

However, RSS is still an emerging opportunity which many companies haven’t yet exploited. So for those of you not already using RSS in your business, here’s a brief tutorial:

The origin of the term RSS is a bit hazy, and it has several different definitions. But to most people, it means “Real Simple Syndication”. RSS is an XML-formatted method of publishing a variety of documents. There are a number of different RSS formats, which can be a bit confusing. But there is an easy way of getting around that, which I’ll discuss later. The important thing is that it’s another simple, free way of promoting your content, whether it’s a Blog, Press Release, Newsletter, or any other document published on the Web.

There are a couple of major advantages to adding an RSS feed to your content:

  1. Changes to your site or content will be instantly “published” and available to your readers—nothing required by you, the publisher.
  2. The RSS formatted content will appear instantly without any action required by your readers—on their preferred personal page, or in their favorite newsreader or browser.
  3. Completely eliminates delivery issues (Spam Filters, etc.) that have become a major problem with content delivery via email

I now want to recommend a great way to get around the “alphabet soup” of emerging RSS standards. I use a service called Feedburner to publish my RSS feed. Feedburner is a great service which takes the guesswork out of deciding what format to publish in. It serves as an intermediary, converting your feed into any of the major standards that a reader might require to read a feed in his particular software solution. So while the native feed of Morettini on Management is in an ATOM format, it doesn’t matter. Feedburner will convert it to whatever major standard is required by the subscriber.

Feedburner also provides the publisher with a nice set of statistics about what content is being viewed, what readers are being used to view the content, etc. There are also diagnostic tools available to make sure you feed is valid and conforming. It’s a great service, and it’s FREE—I highly recommend it.

Try it out, and let me know what you think!

Phil Morettini
PJM Consulting
http://www.pjmconsult.com/

Automated Information Tracking on the Internet

I wanted to make you aware of another cool Web-based, free resource that I’ve become aware of and have started using.

It’s called PubSub, and it allows your eyes and ears to be extended greatly on the Internet. The service works somewhat like a search engine, except a “future” or “forward-looking” one.

PubSub is a service that notifies you when new content is created that matches your subscription. The core technology of PubSub is an Engine that matches new information events against stored queries such as yours, at more than three billion matches per second. This allows the PubSub service to constantly monitor millions of information events for you.

It’s very easy to use. You enter a phrase, or a set of phrases in a list box. Simply click “Start Matching Now” and you’re ready to roll. This creates the subscription on PubSub that will continuously search for the chosen phrases across a wide variety of Internet content. PubSub claims to monitor over 2o million Internet sources, including weblogs, Newsgroups and Edgar SEC filings. You can have PubSub monitor all its sources, or narrow it down to specific categories such as “Airport Delays”, “Weblog Entries” or “SEC/Edgar filings”.

PubSub creates an RSS feed containing new matches, which you can read in a browser or have constantly available in a newsreader. I have my PubSub feed linked to my personalized Google Page, which I use as my browser homepage. That way I instantly see any new matches right when I boot up in the morning.

If you think about it, this type of service could be useful monitoring information for many different reasons. You might, for example, tell PubSub to look for “New Plasma display TVs”, if you’re in the market for a TV upgrade in the near future.

You could use it for monitoring reviews and mentions of your software product. Or track the marketing moves and financial results of your competitors.

I use it for monitoring the presence of my high technology management consulting business on the Internet. It’s very useful to know how often your company is being mentioned–and more importantly what’s being said!

This is a tool whose usage is only limited by one’s imagination. How will you use it? Post a comment, or write me an email, and let me know.

Phil Morettini
PJM Consulting
www.pjmconsult.com

Search Marketing Blog

I’ve come across another great Blog recently that you should know about. It’s called the “Biznology Blog“, and it is written by Mike Moran, a noted authority on search engine marketing. Mike has a book out that you can purchase called Search Engine Marketing, Inc. I haven’t read it but the reviews are pretty good.

This Blog covers a variety of topics in the online search marketing world, all of them salient and of current interest. Categories covered include Corporate Search, Search Marketing, Organic Search, Paid Search, Web Metrics and e-commerce. I have found it to be both interesting and informative.

There is also a free monthly email newsletter that you can subscribe to. This is great stuff, I highly recommend it. Happy New Year to everyone. I’ve enjoyed the dialogue throughout 2005, and I look forward to an even better 2006!

Phil Morettini
PJM Consulting
www.pjmconsult.com

High Tech Product Promotion

I’ve discussed many topics related to High Technology companies over the last several months. One fundamental subject I haven’t explored in detail is the promotion of High Tech products.

This is a favorite topic of mine, since I tend to become heavily involved with promotional activities with clients, as part of my consulting practice. Many of my clients are at a stage where gaining (or regaining) market traction is crucial to moving the company forward. So finding successful, profitable promotional programs is quite often one of the key activities that we’re concentrating on early in a consulting engagement.

Same old, same old doesn’t work

So what’s the best way to promote software and other technology products? If you’re asking that question, thinking there’s an actual answer, you are likely on a path to failure. One-size-fits-all promotional programs rarely work, and if they do, it’s probably just lucky. The most important thing to remember about promotion (and marketing in general) is that each company and product line is a unique situation. Even with the exact same company and product line, a promotional program that worked 12 months ago has a high chance of failure today. Markets are not static, particularly fast moving, high growth technology markets. And there is a wide range of market types within the high technology business sector. The proper promotional approach for a $100,000 software package with 1000 potential customers is far different from the best approach for a $49 software package with 5 million potential targets. If you find yourself falling back on some tried and true formula, you’re thinking “behind” the market, not “ahead” of it. I always chuckle a bit when I see ads for a new VP Marketing that is seeking candidates only from 10 specific software companies that have had recent success in a particular market. It’s very likely that one of those candidates will bring along the “formula” that made “Giant Software Company C” a huge success. Unfortunately, the strategy may be terribly inappropriate for their new company, particularly at a new time/market stage. This is an example of “shooting behind the market”—and with promotional programs, thinking ahead of the market is required.

The reason is what usually works in promotions are novel new approaches (or new spins on old approaches, or approaches from other markets). Once something works, others in the market take notice, and the copy-cat campaigns flood the communication channels, and greatly reduce a successful program’s effectiveness. Nothing works forever, so you need to constantly being trying to find the next new promotional program—again, out ahead of the market. It’s similar to when the coach of a sports team installs a new system for his team—it throws the competition off balance for a time, but they eventually adjust, and match or counteract what is providing the advantage.

First Art

So how do you approach finding a successful promotional program for your company—do you just guess? Well, not quite. I always say that promotion is a combination of “Art” and “Science”—with unfortunately, the Art coming first. The thing is, you will NEVER know with any level of certainty whether a promotional approach will be successful, until you do it. So there is a bit of Art in formulating the initial “test programs”. But of course you don’t guess. The initial program is put together utilizing the experience of the marketer, their past experience with programs in similar market conditions, a snapshot reading of the market conditions and product position currently, the amount of budget available, and of course the goals of the company. So up front, the key is to make small, intelligent bets.

Then Science

The key word in the above paragraph is “test”. This may be the most important concept in the whole topic of promotion—and unfortunately, one that is dramatically underutilized.

Marketing promotional programs are all too often put together haphazardly, without much analysis of the specific situation. Often they are designed in a certain way because the VP Marketing or CEO has always done it that way, or are comfortable with it. Executives without much marketing experience like to see print ads, because in their minds, that’s marketing promotion. Of if the VP Sales is involved, Trade shows might be what he’s used to. Or seminar promotions might be preferred, if the executive comes from a market with high price points. While all of these methods may be very applicable to an individual situation, they are, on average, some of the higher cost, lower return activities in the promotion bag of tricks. I see thousands (and sometimes millions) of dollars wasted on programs that have been given very little thought, prior to large execution expenditures. Worse yet, these programs are often approved and implemented with no ability to judge whether or not the chosen programs end up being a good investment for the company. This brings me to the measurement part of promotional marketing.

I’ve never been a big fan of marketing programs which aren’t measurable. When measurement doesn’t occur, it’s often because program implementation just isn’t thought through well enough, and accurate measures could have been put in place—but aren’t. Some programs however, such as “Image Advertising”, just don’t lend itself to correlating the program results to the corporation’s performance. While there is, again, a place for such programs, I recommend that they be left to those monster corporations who can afford ambiguous results within some segment of a very large budget. For the preponderance of companies out there for which every nickel counts, I highly recommend that you stubbornly stick to programs with results you can easily measure.

Formulate, Test & Measure

So the formula uses some judgment to place your initial bets. Always make sure that you objectively test different key elements(such as price) of your offer with several controlled options, and measure the results. Good marketing programs are always testing and measuring new versions of each key element, which allows you to continuously improve, and refresh, a campaign. Also remember, measurability doesn’t just happen—it needs to be “designed in” upfront. If you don’t think about measurability for a specific program until after the fact, you’ll likely have lost the opportunity to measure it at all—or at least as well as you could have, with some simple planning prior to program execution.

Top 5 Bets

As I stated above, every promotional marketing program needs to be individualized for the current time, market, product line and budget. You’ve got to start placing your bets somewhere (the “art” segment of finding great promo programs, as discussed above). For someone out there just getting started, or trying to evaluate where to go next, here are some great programs to consider first:

Press Relations (PR)—generally my favorite marketing program for most high tech companies. This activity is intended to provide your products and company with reviews and publicity in high tech trade journals, and depending upon the product, possibly general circulation newspapers and magazines, as well. If you have a good product that fills a need, getting positive reviews will provide your company with tremendous leverage and credibility, filling the prospect pipeline with eager potential customers. Depending upon your particular market, hiring a PR firm or a “do it yourself” approach might be most appropriate. But nearly every company with a real solution for a particular market needs to have an active PR program of some sort.

Search Engine Optimization (SEO)—unless you’re selling a $1,000,000
product with a potential customer universe numbering less than 100, this is something almost every company should be doing. SEO is the activity which helps your website be found “higher up” in the results of a search conducted by someone using a search engine such as Google, Yahoo or MSN. No time to go into the details here, but it is a high return activity. A little investment of time or money upfront can yield a strong return in revenue and profit gains. Much like PR above, even with no budget to outsource this to an expert, you can conduct an SEO review and make improvements to your website on your own.

Direct Email to House Lists—if you’re not doing a good job of capturing contact information on your customers and prospects, shame on you! Lack of doing a good job in this area is one of the more striking deficits that I see in the marketing efforts of high tech companies, particularly the early stage variety. It’s especially critical to capture email addresses, and do it in such a manner that the customer or prospect grants you explicit permission to contact them by email. You’ve spent a lot of money making contact with each of these prospects or customers, and a well-executed direct email campaign to sell them additional products and services can a bring quick boost to your revenue, with nearly zero incremental costs. Every High Tech company should strive to have an active direct email campaign of some sort, to allow your brand to maintain mindshare within your target audience.

Pay-Per-Click Advertising—while this area has gotten quite a bit more competitive over the last year or so, I still highly recommend it as a preferred marketing program, for a great majority of high tech companies. These are the small “text ads” that appear next to organic Search Engine results and are labeled typically as “Sponsored Links”. Pay-Per-Click programs are the internet advertising analogy to prints ads in the printed media world, much like organic search engine results are the online analogy to editorial placements in the print world. The two best known Pay per Click services are Google Adwords and Yahoo Search Marketing (formerly Overture). Particularly for companies with highly target-able or niche markets, this can be a very cost-effective and rewarding activity.

Direct Email to Rented Opt-in Lists—this is also an activity that has taken a hit in popularity over the last couple of years, due to the problem of SPAM, and over-saturation of email in general. But if you’ve done a good job in target marketing overall, and you have been successful with emailing to house lists and Pay-Per-Click advertising programs, focused direct email programs to targeted lists may still be quite successful. Shot-gunning almost never works, and can harm your brand if poorly done. B2B is much more viable than B2C email marketing. Just remember, direct marketing in every medium is all about the offer and the list. So if you have a strong offer, and are able to rent a list that fits closely with your target audience, email to outside lists can be a strong contributor within your overall promotional plan.

I hope that this is has been a useful outline of the basics of high tech promotion. As always, I’m very interested in your feedback. Happy Holidays!

Phil Morettini
PJM Consulting
http://www.pjmconsult.com/