This site's presentation is designed for browsers that support web standards, but the content is accessible with the one you are using. Just not very pretty.

PhotoDude's Web Log

···>Weblog···>Archives···>Category: AdvertisingInternetWeblogs
···>Previous: A New Euro Flag?, 05.10.02

Gonzo Marketing

Friday, May 10, 2002 @ 11:13:50 Atlanta time

Gonzo Marketing - No, unfortunately Hunter S. Thompson isn’t involved, as that would give this idea more entertainment value. Here’s the concept, as capsulized in The Guardian: “What replaces mass market, broadcast advertising is Locke’s ‘gonzo marketing’, which is not really marketing but ‘market advocacy’ through participation, sponsorship and support. The internet replaces the us-and-them relationship (creative people broadcasting to couch potatoes) with a network of conversations, which is all markets are, really. “

Jeff Jarvis’ summary is a little more concrete: “Instead of buying ads on blogs (which we’d all love, but which would not work even if it happened... witness other failed Internet ad movements; we will be spared that humiliation thanks to timing) the wise marketer will recognize a community of shared interest and will underwrite that community, will help make it possible, will say by that act ‘we share an interest and affection for this community.’ Thus the marketer joins with the audience and stays on the edge of buzz. “

And this is where I got both confused and bemused. Jeff’s a smart guy, who’s been ahead of the curve on quite a few things, and he likes the idea so much “I’ve been pitching to most anybody who’ll listen”. So I thought about this a bit harder. As someone who’s been in one form or another of the advertising business for 25 years, I’m bemused by the concept, because I can hear the reaction of most clients. But there’s a way around that.

Advertisers will have the same basic questions I’ve been hearing for 25 years: “Now, what the hell do I get for that? And you want how much money?” I’m no account executive (thank you again, O Deity), but I can just hear the pitch, the call and response.

So, you want me to sponsor this forum, er, community thing. What’d you call it? A Blorg? OK, whatever, they’re talking about my market, I can see these are people I want to reach. How many ads do I get for my money, and how prominently will they be located?

Um, you won’t get any banner ads or anything like that.

[Pause] OK, will my sponsorship be a prominent part of the site’s design and branding? You know, Joe’s Garage Talk is brought to you by Acme Auto Parts, plastered all over the pages?

No, this is a community, and they pride themselves on their independence. But if you underwrite this community of shared interest, well, you can’t quantify the good will that will buy your company.

No, I can’t quantify it, but my boss is sure going to want to. I’ve got to be able to show concrete returns for this investment.

Oh, but you will. By underwriting this, you’re saying “we share an interest and affection for this community,” and you get to be a part of the conversation and stay on the edge of the buzz. You do know the Internet isn’t a market, it’s a conversation, don’t you?

[Long Staring Pause] Like this one? Are you charging me for this, because I don’t seem to be getting much out of it. So far, I’m hearing that you’ll take our money, but we get no banner ads, and no dominant sponsor identification? Just a whole lot of warm fuzzy goodwill? How am I supposed to sell that to my boss?

You can tell him this is a brand new form of advertising. It’s not standard marketing, it’s ‘market advocacy’ through participation, sponsorship and support.

[Longer Staring Pause] So, in this exchange, one side gets added participation, sponsorship, and support, and the other side gets ... to be a part of the conversation? Sounds like a great deal. For one side. Come back when you’ve got something for the other.

After 25 years in the business, I can tell you the above conversation is the one you would have with a mostly clueful client. Many of them (“sure, I’m on the Net, we’ve got WebTV at home!”), would be far worse.

It’s not that this basic idea doesn’t have merit. But it currently is presented in a one-sided buzz-coded manner, and you’ve got to give the advertiser some concrete benefits they can wrap their tiny heads around. You’ve got to make it sound like the best idea they never had, but they’re glad you did. Right now, the response generated is more like, “yeah, that’s a super idea. For you.”

Like most everything in advertising, this is a concept that has to be sold on cost. That’s the only terms advertisers can parse. Advertising is an amazingly expensive business, and has been for a long time. Sponsors are used to six figure print budgets, or seven figure TV budgets. Make them a four or five figure proposal, and you’ll get their attention. Explain to them that for the same money they would spend on a one page ad in a specialist publication, they can sponsor ten or twelve specialist communities. Show them cost benefit. Give them guerilla tactics: “tell your boss these people will thing you’re a cool company because you’re helping them, but not shoving tons of ads down their throat. Tell him it’s hard for a corporation to buy ‘cool,’ but this community of enthusiasts is willing to sell it to you. Cheap.”

And this concept will be best sold by removing all the middlemen. Including those steering the ClueTrain. I can only speak for myself, but as the digital mayor of a small non-profit photo community, if a company like Nikon were interested in some form of sponsorship, I’d be willing to talk about rotating text ads on the home page. Or a new and heavily Nikon branded tech section. Or small ads on the secondary pages. Or a co-branded header/footer. Or any number of things I didn’t think of in the past 20 seconds.

Why? Because we’re small. Nikon is big. A mere five grand would insure the site’s future for years, but would qualify as “office supplies” for one Nikon employee for a year. Would I run small text ads on the home page for that? You betcha.

The point is, I might choose to do any number of things RageBoy & Co. would find antithetical to their ideology. The Nikon rep and I might have a conversation that spurred more traditional advertising possibilities, ones unique to my site and his products. Ideas that an agency never would have thought of, because they don’t fully grasp either my community, or his products. But we do. We don’t need middlemen, they just limit possibilities.

And there’s my real breakdown on “ideology,” “markets,” and “conversations.” It’s a good ideology that has driven this concept, but it has made it appear rather one sided in approach. And advertisers do need to stop thinking of the Internet in terms of markets and start thinking of conversations. In addition to hiring an agency to “market” them, the company itself needs to have conversations with the leaders of communities in which it has an interest. Those individual conversations can lead to new and very customized means of marketing within these communities.

But we’ve got to get past the ideological GeekSpeak and $peak in $imple term$ the adverti$er$ under$tand.

[Update: The conversation continues]

···>Previous: A New Euro Flag?, 05.10.02
COMMENTS POLICY: This is not a public forum, this is One Man's Site. The ability to comment here is a privilege, not a right. This is very much my Digital Home, so please act as though you were sitting on my couch, and so will I. Opposing views are welcomed, though time may constrain my replies. However, I reserve the right to delete your comment if you descend into personal attacks, ad hominem, excessive profanity, mouth-foaming hatred, or any other trollish behavior that I deem “unacceptable in my home.” Please craft your contribution accordingly.
Peanut Gallery: 6 Comment(s)/ 0 Trackback(s)
§
Comment from Pat:

I think you’ve really hit on both the promise and the problems of the phenomenon, Reid. If “ad agencies” (whatever they would be called) are to survive in this sort of community-based web, I tend to think it would be as enablers of the conversation between corporations and their customers. And maybe they won’t survive--maybe the marketing departments of the corporations could rethink their role enough to do the same thing, eliminating the middleman. It’s a different world, for sure. The possibilities are really exciting.

Of course, all this presupposes that the entertainment conglomerates don’t get their way and emasculate our computers into simple entertainment-delivery boxes. Bottom-up creativity and community requires the current environment of no artificial barriers in order to flower, though that does make copyright piracy easy. Unfortunately, instead of developing new business models to take advantage of technology and connectedness, the entertainment industry is using legislation to force building of those barriers higher and higher.

I see it as all part of the same thing--the democratizing, bottom-up influence of mass access to technology vs. top-down, centralized access to media. I don’t mean it to sound like one side is all good and the other is all bad, either. Centralized access does tend to raise standards; conversely, a few hours on the Flash message boards (for example) may make one wish that a lot of people wouldn’t even try to express themselves publicly.

Food for thought, anyway. Um, thanks for letting me sound off on your blog, Reid. I’ll shut up now.

Posted by [Pat] @ 12:40:08 - 05.10.02
§
Comment from PhotoDude:

No need to shut up, I appreciate your thoughts, Pat. And I don’t mean to eliminate all “middlemen,” as there’s still a very real need for corporations to hire ad agencies. This is not an end of the old ways. There will always be a need for agencies that have the expertise to concept, produce, and buy ad time/space on behalf of a company. Unless, you’re like Pepsi, with the resources to pull your advertising totally in-house, to do otherwise is foolish. Agencies represent a pool of talent and experience in traditional media that isn’t going away.

But companies need to start thinking of their marketing in more binary terms. Just as the web is developing both top-down (Amazon, eBay, etc.) and bottom up (MetaFilter, slashdot, weblogs, etc.), companies need to develop marketing that addresses both directions. Ad agencies and public relations departments are the traditional top-down approach, but despite every effort by vendors to convince companies otherwise, they are not the only way. And when you try and approach things from the bottom-up end of the market, to communities and individuals, middlemen are often dealbreakers by their very presence.

And there’s more than one way to go about it. I think the launching of weblogs by various Macromedia employees is a great example of this bottom-up marketing approach. They not only joined an existing community, weblogs, they basically built a unique community of their own, as they use these as resources to share information about the various MX releases. An MX community.

§
Comment from RPD:

I’ve always thought one of the big problems with internet advertising was the concept of “click-through”. By that i mean that advertisers are tempted to try and measure the effectiveness of an ad through how many people click on and ad and proceed to by something.

I would wager if you could make similar measurements with billboards, magazine ads, etc. that these more traditional media weren’t terribly effective either. If they can get away from this directly measurable idea, then they would be in the same ballpark as sponsoring a race or aquiring naming rights on a stadium. I think that sponsoring a specialist internet forum would be rather analogus, though of course on a much smaller scale.

Posted by [RPD] @ 14:48:34 - 05.10.02
§
Comment from Evan:

Kudos! And great thoughts all around! Although this type of advertising is really nothing new ... I guess the big difference is that it hasn’t been “sold” as “advertising” before. An example that comes immediately to mind is the Alligator River Wildlife Refuge in North Carolina. Now stay with me here ... The ARWR is a wildlife refuge that has been reintroducing the Red Wolf into the wild since 1986 a breed that had become, by human intervention, extinct in the wild. Because of my interest in wolves and the reintroduction process I have done quite a bit of research about the refuge. The primary reason the refuge exists is because of a 118,000 acre donation of land by the Prudential Life Insurance Company. Now other than tax relief that donation was done because someone at that company had a genuine interest in making use of the land in a capacity other than profit. There was very little “what do we get out of this?” My point is that Prudential Life Insurance Company’s stock just went through the roof in my book. Why? Because of a billboard? Because of a TV or Radio spot? No, because they contributed a ton of financial support to a cause I strongly believe in. Philanthropy is nothing new, it’s only in the age of “PacBell Stadiums” and “Volvo Races” that it seems strange for a company to “donate” money to a worthy cause without thinking of face-time.

Posted by [Evan] @ 15:46:19 - 05.10.02
§
Comment from Eric Olsen:

Hey Reid, Some truly brilliant thoughts on your and your reader’s parts. Prejudices have to be broken on both sides - I’m have no problem with “tasteful” ads of some sort, more in the NPR “support” model than screaming “buy me’s,” but mindful of the cheese factor, ads are fine. From the other end, there needs to be an awareness of the ripple effect out from these highly motivated “communities.” I’m thinking more and will do something on my site, but great job!

§
Comment from Nigel Campbell:

I have spent a large chunk of my working life as a senior art director in large advertising agencies. In my experience clients are as clueless as you outlined. However, it is important to remember that the purpose of advertising is not to raise the profile of a company or their products; but to extract as much money as possible from the client. This is usually done by pandering to their egos, it has little to do with actual results. In a way, this means that it is possible to convince clients to fund websites; (though making it cheap will make them suspicious - the most likely scenario is that it will be expensive, but the agency will keep most of the money and pay the site owner a pittance); I once contacted Sony to discuss setting up a funded site for Sony Mavica users, they were disinterested to say the least, but that was quite some time ago and the corporate world has woken up to the internet now. I think some of the problems lie in the site itself. The Macromedia blogs thus far appear to be pretty much party line stuff and product updates dressed up as a weblog. I wonder how your impartiality will be judged once you pick up corporate funding? And what will be the reaction of the client if you write about something that could be detrimental to their business? For me the model is Macintosh, who have always believed (and also relied on for free advertising) in end users promoting their products because they loved them (or MacEvangelists as they are called). I actually doubt that my pro mac arguments would be as convincing if I was on the payroll. That said - I could use a few bucks.


"Gonzo Marketing"
Home * Print Store  * Portfolio * Road Trips
PhotoDude Labs * PhotoDude Web Design
Site Search

Powered by Movable Type

All Original Text and Images on this page
are © 1996-2003 Reid Stott.