3 dos and 2 don’ts for settling the digital marketing frontier

February 6, 2013 by Leave a Comment
Seth Bullock doesn't have your back on the digital marketing frontier.

Seth Bullock doesn’t have your back on the digital marketing frontier.

I previously posted about the importance of a dedicated R&D budget for digital marketing innovation. Of course, a budget is useless if it’s squandered. And in digital marketing, there are plenty of opportunities to burn cash.

Digital marketing is an unsettled frontier, populated by self-proclaimed gurus, snake oil salesmen, and iffy startups. You can strike it rich in the Wild West, but you must remember that no one’s looking out for you but you.

Here are a few tips for thriving on the digital marketing frontier.

    • Do follow the top companies. There are innovative companies doing innovative things right now. Don’t wait for them to speak at the next digital marketing conference. Learn from the best today by benchmarking leaders like Intel, HBO, and American Express. (Be sure to follow your competitors too.)

 

    • Don’t just read Mashable. Mashable is the popcorn flick of tech journalism. Hey, even a chump like me can get covered. Dig deeper, and make sure your agency digs deeper too. I prefer Altimeter Group, the Inside Network, All Things D, and boring non-sponsored whitepapers.

 

    • Do go beyond the logos on a startup’s website. It’s easy for a startup to slap a Fortune 500 logo on a PowerPoint slide. Did the client actually use the tech, or was it simply a short consulting gig? Ask vendors how deeply engaged they were with clients. And ask for references.

 

    • Don’t just look at install base. Just because an app gets installed doesn’t mean it gets used. How many free apps do you have lingering away in dark corners of your iPhone? Demand to see monthly active user figures before investing in startup platforms.

 

  • Do ask how previous clients tracked ROI. Shady entrepreneurs pay their bills thanks to suckers who don’t ask about measurement. You may not be able to track all the way to a purchase. Just be sure to measure something. If a startup has no means of measurement, walk away.

How do you stay safe on the unsettled frontier of digital marketing? Let me know in the comments!

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The benefits of a dedicated digital R&D budget

December 3, 2012 by 1 Comment

When it comes to digital marketing, there are huge benefits to being an early adopter.

First, there are cost efficiencies in new platforms due to lack of competition. Second, to borrow a real estate analogy from Tom Martin, those who move into a neighborhood before it’s popular benefit most from any future popularity.

Digital marketing is full of shiny objects. Of course, a preference toward early adoption can give way to shiny object syndrome. It can distract time and budget away from programs that are already proven.

That’s why a dedicated digital R&D budget is so useful. By sequestering a portion of the overall digital budget for experimentation, the brand and agency are empowered to balance new initiatives with proven programs.

And it’s as simple as documenting that, in the coming quarter or year, we will spend this amount on R&D. No more. No less.

Why does it matter? Here are three specific cases for a dedicated digital R&D budget.

1. Aggressive digital managers: Keep ‘em blocking and tackling too.

Here, the digital function is managed by an early adopter or tech enthusiast. She reads industry publications, attends conferences, and plays with all the new toys. With these folks, budgeting permits some playtime with shiny objects while protecting the rest of the budget for proven digital tactics.

2. Conservative digital managers: Keep ‘em out of their shells.

Here, we have a ‘traditional’ marketer managing the digital function (and perhaps several other functions). He relies on his agency to invest resources in research and pitch new ideas. A dedicated R&D budget lets him safely invest in innovation so opportunities aren’t missed out of fear.

3. All managers in a recession: Keep ‘em confident at the water cooler.

And finally, we have the resource-strapped manager with aversion to risk. The recession has left him and his peers under pressure to defend programs. Of course, ROI is hard to come by early in the R&D process. A budget protects him from sticking his neck out or going up the flagpole on every project.

By creating a dedicated budget for digital R&D, we can benefit equally from new technologies and proven programs regardless of our personality type. How do you create the freedom to experiment in your organization?

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