February 10, 2007

Ode to Yahoo (Overture) Inventory Tool

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http://www.dmnews.com/cms/dm-news/search-marketing/39752.html

The above link leads to the article below:

Why is it that we never truly appreciate something’s value until it is gone? For years the public Yahoo inventory tool was frequently shot down for its inaccuracy. Today, as it is dying a slow death, the industry realizes just how significant the tool was in shaping our industry.

Launched as the Overture Search Term Suggestion Tool, the Web-based application allows users to determine the number of times a word is searched across the Yahoo network during the previous month. Perhaps more interestingly, up to 100 derivatives of this keyword are provided along with search volume. Clicking on a derivative generates yet another list of derivatives, displaying a powerful visual of the long tail in just a few minutes.

In discussing this topic with industry experts, Kevin Lee of Did-It said, “Nothing beat the Overture inventory tool for illustrating the long tail of keyword queries to marketers. Letting them pick the keyword was so powerful.” So while John Battelle’s concept of “the database of intentions” might be based on what is under Google’s hood, it was Yahoo that first put this data in the hands of everyday people.

Clearly, the tool has been a primary source of research for many a search marketer for pitches, proposals or actual campaigns. For those with dedication, tracking queries over an extended period of time informed seasonality, changing consumer tastes or even the search effect of offline media campaigns.

During my SEM agency days, I frequently pulled up the tool in meetings and shot from the hip. In just a few minutes, I could not only describe the target market’s behavior, but quantify it as well. It never ceased to amaze those on the other side of the table. Exclamations such as “But why are people searching for that product? We discontinued it two years ago!” quickly materialized into minor consumer behavior revelations.

Over the years, other tools came into vogue as industry leaders criticized accuracy of the tool’s estimated volume as well as the editorial aspect.

Today, pragmatists such as Andrew Wagner of Trafficbuyer Digital agree that the tool is both directional and helpful. Andy Beal of MarketingPilgrim said, “The numbers were never accurate, despite our many years of trying to apply a multiplier that would lead to a fair representation of actual search frequencies.” Mr. Lee also agreed: “The data was always taken with a grain of salt, but having counts presented, even when they were obviously inaccurate, brought the data to life.”

It wasn’t until I held a recent Search 101 seminar that I realized just how much the tool had aged. Like an elder relative, the tool fell asleep frequently at the table. Sometimes it just didn’t make any sense at all. On a call with some Yahoo employees, my greatest fears were confirmed: The tool would not longer be supported in the near future.

So where to turn now that the tool’s days are numbered? Hugh Burnham of RareMethod suggested that the Trellian Keyword Discovery tool, coupled with MSN adCenter research, helps him gain insight as to how and where to advertise most effectively.

For Mr. Lee, his team long since turned to internal tools, though he is pleased to see keyword research functionality incorporated in some APIs, allowing technologists to combine data from multiple sources.

Danny Sullivan of SearchEngineLand.com said that the Google AdWords tool is now his first stop. This, of course, was not without a heartfelt expression of sorrow: “I’ll absolutely miss that little bugger.”

Sara Holoubek is contributing editor on DM News' SearchBuzz weekly newsletter. Reach her at saraholoubek@dmnews.com.


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February 12, 2008

How StumbleUpon Drives Traffic To Your Site

It’s what you want. The very popular StumbleUpon concept is simple: when you sign up, you provide the service with some of your interests, and you install the neat little toolbar. Once you’ve got the application installed, you can simply begin stumbling and you can tell the system how you feel about the page that was served to you. By clicking on the thumbs up “I like it” button or by clicking on the thumbs-down button, you teach the SU system what content you truly enjoy. By stumbling and sharing your finds to other users, you’re personalizing your own experience and the experience of your peers as well.

The personalization concept — where content is being provided based on your own desires — has proven to be quite successful. Since it was introduced two years ago, StumbleUpon now boasts over 1.8 million users, and is continually expanding. Version 2.90 of the toolbar, which came out earlier this week, is incorporating the relatively new video social search engine that it unveiled in December. StumbleUpon is truly growing…

DiggAnd so is Digg.

At half the amount of subscribers that StumbleUpon has, Digg is aiming to emulate the SU concept, a recent BusinessWeek article has reported. Hot on the heels of StumbleUpon, Digg (which launched its own video extension five days after StumbleUpon did) is aiming even higher to SU’s core success model: a recommendation tool.

According to Kevin Rose, Digg’s founder who is quoted in the article, “Digg will be smart enough to know what interests you” and it will serve content that fits within the tastes of its users. For current subscribers, this means that Digg will serve content based on the stories users have dugg or buried. If you used the service to promote pages that you truly liked, the Digg system appears to not be much different from StumbleUpon.

More and more companies are involving themselves in what can be an imminent threat (well, perhaps not just yet — and it still depends on who you ask): personalization. Google’s personalized search is being promoted more heavily. As more and more people realize that there are only a few items that may be of interest to them when they search, systems are learning to adapt to user preferences through their own algorithms. As Google explains it, if you’re searching for “dolphin” because you want to learn more about the football team from Miami, you’re not overly concerned with results pertaining to marine life. Depending on the types of pages you visit and the domains upon which these sites are located, Google’s personalized search will rank these pages higher than the undesirable results, thus providing you with a searching experience that like that of no other user. To Google, this is a move provide quality results and reduce the unnecessary clutter.

 

To make our websites shine through these results and be obvious to the viewer, there will likely be obstacles that we’ll need to overcome. Good content is a necessity. Telling your friends is a good way to get the word out. Promoting these pertinent sites through social search is still going to be very useful.

We’re bordering on a new era, one with incredible challenge and obstacles, but one that does have the end user — you — in mind, and hopefully everyone in all communities will be happy with the results.

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May 27, 2008

I Like Yanik Silver's 34 Rules for Maverick Entrepreneurs

34 Rules for Maverick Entrepreneurs

  1. It’s got to be a BIG idea that you, your team and your customers can “get” in seconds.
  2. Strive to create 10x – 100x in value for any price you charge. Your rewards are always proportionate to the value you provide.
  3. You must charge a premium price so you have a large margin to provide an extraordinary value & experience.
  4. Provide a ‘Reason Why’ customers should do business with you and pay you a premium.
  5. Get paid before you deliver your product or service.
  6. You get to make the rules for your business. Don’t let industry norms dictate how you’ll work or who you’ll work with.
  7. Create your business around your life instead of settling for your life around your business.
  8. Consistently and constantly force yourself to focus on the ‘critically few’ proactive activities that produce exponential results. Don’t get caught up in minutia & bullshit.
  9. Seek to minimize start-up risk but have maximum upside potential.
  10. Get your idea out there as fast as possible even if it’s not quite ready by setting must-hit deadlines. Let the market tell you if you have a winner or not. If not – move on and fail forward fast! If it’s got potential – then you can make it better.
  11. Find partners and team members who are strong where you are weak and appreciate being paid on results.
  12. Your reputation always counts. Honor your obligations and agreements.
  13. Never, ever get paid based on hours worked.
  14. Leverage your marketing activities exponentially by using direct response methods and testing.
  15. Measure and track your marketing so you know what’s working and what’s not.
  16. Bootstrap. Having too much capital leads to incredible waste and doing things using conventional means.
  17. Your partners and employees actions are their true core – not what they tell you.
  18. Keep asking the right questions to come up with innovative solutions. “How?”, “What?”, “Where?”, “Who Else?” & “Why?” open up possibilities.
  19. You’ll never have a perfect business and you’ll never be totally “done”. Deal with it.
  20. Focus most of your time on your core strengths and less time working in areas you suck at.
  21. Make it easier for customers to buy by taking away the risk of the transaction by guaranteeing what you do in a meaningful way.
  22. Always have something else to sell (via upsell, cross-sell, follow-up offer, etc) whenever a transaction takes place. The hottest buyer in the world is one who just gave you money.
  23. Always go back to your existing customers with exceptional offers and reasons they should give you more money. It’s 5x less expensive to sell to happy customers than go find new ones.
  24. However the flip side is - fire your most annoying customers. They’ll be replaced with the right ones.
  25. The marketplace and competitors are always trying to beat you down to a commodity. Don’t let that happen.
  26. Develop and build your business’s personality that stands out. People want to buy from people.
  27. Create your own category so you can be first in the consumer’s mind.
  28. Go the opposite direction competitors are headed – you’ll stand out.
  29. Mastermind and collaborate with other smart entrepreneurs if they have futures that are even bigger than their present.
  30. Celebrate your victories. It’s too easy to simply move on to your next goal without acknowledging and appreciating the ‘win’.
  31. Make your business AND doing business with you FUN!
  32. Do the unexpected before and after anything goes wrong so customers are compelled to ‘share your story’.
  33. Get a life! Business and making money are important but your life is the sum total of your experiences. Go out and create experiences & adventures so you can come back renewed and inspired for your next big thing.
  34. Give back! Commit to taking a % of your company’s sales and make a difference. It this becomes a habit like brushing your teeth pretty soon the big checks with lots of zeros won’t be scary to write. If you think you can’t donate a percentage of your sales simply raise your price.

Here's the URL to the entire blogpost:  http://www.internetlifestyle.com/blog/?p=341

 

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December 14, 2007

Should We "Make Love" To Our Customers?

This is the question I posed to my contacts in LinkedIn.  The question was as follows:

"Should we 'make love' to our customers?"

"Do you think marketers should stop treating their customers like wallets and instead treat them more like the people they would like to be their dearest friends, or even a desired lover?"

I received a few interesting responses, and have decided to post them here:

Lucas Allmon wrote:

While I agree with Benny to a certain extent, business IS relationships. You are more likely to do business with someone that you like than someone you can't stand.

Companies need to start treating people more like humans than just policy numbers or walking products.

While you may get a sale by being a hardass, you aren't going to retain those clients as lifers.

Hamish Taylor wrote:

Only if you're married to them as otherwise invoicing becomes really difficult!!! :-)

Ray Miller wrote:

There is the old expression……….you catch more flies with honey than…..

Benny Greenberg wrote:

Actually befriending your customer is a poor approach to closing a sale. I have given a few e-courses on the proper methodology involved in this strategy. You need to be the expert, the person your customer looks to as the one-and-only person to buy from. Not the person to go bar hopping with. Think people - it is much easier to say NO to a friend than to a stranger. The same way you would not present in jeans and a t-shirt, or show up with your cell phone in hand, a bic pen and torn post it notes, you do not turn your customer into your friend. If you want to know more - drop me a note

Eugene Rembor, MBA wrote:

OK, had some time to look at the viedo, but honestly - I don't understand a thing. What's your point??

Eve Morris BSc(hons), Cert DigM wrote:

I think the FSA stance on treating customer fairly gives some valuable guidance on how UK financial services businesses should treat their customers. This guidance can also apply to non-financial services businesses. We should all treat our customers fairly & with respect - not with a veneer of false friendship which could potentially be perceived as shallow & insincere.

Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture;

Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly;

Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale;

Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances;

Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and as they have been led to expect;

Outcome 6: consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

These 6 outcomes should be the foundations upon which all products are marketed & sold to customers.

As regards your love metaphor.. to take it literally - to smile at a customer can be to engage initial interest in your product, to cuddle them can be to comfort & reassure with credibility & brand reinforcement, to make them feel special is to target & personalize the relevance of your communications to them individually, and to love is to value them as an individual who interacts with your brand time & again.

I hope this is helpful - I am open to connect
Kind regards
Eve

Pieter Dorsman wrote:

No that would be too much…

I do hope some of my suppliers say "yes" but preferably just the female representatives…

Hjörtur Smárason wrote:

Depends on what you are selling, Angela :)

But in general, the answer is no. You should not.

I like it when brands approach me personally and appear relaxed, secure and sincere, (the same goes for people). But if you start stroking my thigh, I'm off. So don't over do it.

Cheers
Hjörtur

Geri Rockstein wrote:

Hi Angela,

I believe that a business relationship should be a professional one where each party meets or exceeds the expectations of the other. I don't believe that is treating someone like a wallet. Being treated or treating a business relationship like a potential friend or lover does not enter into the equation for me.

Best regards,

Geri

Teemu Korpi wrote:

If there can be a person more reserved than a brit then he/she must come from Finland like myself. Like John W. I would find it very troublesome if someone in the position of a salesperson came too "close".

I would rather have that relationship in the right framework that being a customer one. Then again there are certain facts that make a good customer relationship.

One vital part of marketing communication mix is personal selling. That's the contact point where the promises are kept or not. That's the critical point where the basis of returning customer relationship are laid.

So, I would keep my pants on and hands in my pockets.

Tim Chattaway [LION] wrote:

In the industry I work In It pays to be nice, even through gritted teeth sometimes.

However I work with clients/people I get along with, I know this is not always possible, but if you find clients you enjoy talking to the desire to go that extra mile for them is there. Willing to take phone calls from Clients in various time zones at 3am in the morning for example.

We all work to get paid, thats life, but whats to say we can't be nice and treat people with a bit of respect whilst they are also lining are pockets?

John Welford wrote:

I'm not so sure! If a marketer treats me in this way, I will immediately know that they are only pretending to be my dearest friend. If someone said that they wanted to be my lover, I'd get really worried!

The point is that when the marketer is clearly acting out a falsehood, how can I trust anything they say about what they are trying to sell?

This may have something to do with cultural differences. I understand that Americans have a different attitude in these respects from Europeans. As a "reserved" Brit I do not want to be grabbed by the elbow when I meet someone for the first time, and I want people to earn the right to use my first name, not to assume it. In marketing terms, I am deeply suspicious of advertisements voiced in American accents, simply because they sound, to my British ears, less sincere than those that use British accents.

(What I find even odder is the public prudery in America that goes alongside the personal chumminess. Look at the absurd shock and horror generated by Janet Jackson's costume malfunction!)

No - in the same way that I will not jump into bed with you after only one date, don't expect me to buy your product simply because you "come on strong" with your first marketing contact!

Eugene Rembor, MBA wrote:

I don't need to watch the video to yell from the bottom of my heart "YES, they should!".

Thanks so much for all of your responses.  I will be contacting you all tomorrow with your downloads.

The question will be live for 7 days, but from the looks of things, very few people are watching the video.  The question in itself is enough to evoke a passionate answer.  And viewing my video without first reading the Attention Age paper is confusing, as one reader, Eugene mentioned in his second post above after watching the video.  However, when I took a look at my YouTube statistics before writing the post, there were 72 views of the video, so SOMEONE is watching out there!!! Yeah!!!

Apparently, a lot of people do not like the idea of becoming your customer's best friend.  Opinions are also divided.  Many of the interpretations are far from what my intention was.  Eve hit the nail on the head with her analysis and explanation, and I think we can all learn a thing or two from her answer.

For those of you who have not yet seen the video, here it is again:

http://www.strategicprofits.com/66-seconds-compelling/angela-wickenberg/

Talk soon,

Angela Wickenberg

 

 

 

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May 28, 2008

A Guide to Business Development 2.0

Written by Alex Iskold / April 10, 2008

At least once each day I get a call from someone trying to sell me outsourced development services. It's difficult to not be frustrated with these calls and it is increasingly hard to be polite, because they come so frequently. Yet, more than frustrated, I am just puzzled. Does this tactic still work? Who in this day and age would give business based on a cold call? These companies could definitely use a dose of business development 2.0.

Because of these calls, for a while I have been thinking about the impact of the modern age on business development. In the good old days, it all boiled down to the salesmen with the big rolodexes who could close the deal. But clearly, the rules have changed. How does business development work this days? What makes sense and what does not? In this post we take a look.

Cold Calling is Dead

The reason we all hate cold calls so much is because they are very intrusive. A stranger interrupts our flow, and takes precious seconds away from our lives. But maybe even as recently as 10 years ago we did not feel it so acutely. Why? A few reasons. First, the pace of our lives was not as fast, the minutes did not feel as precious. But more importantly, today we have a much less intrusive form of solicitation - email. True we all hate spam, but an unwanted email doesn't feel like as sharp an interruption as an unsolicited phone call.

Besides being annoying, cold calling is no longer effective. People are smarter these days, and have learned to ignore upsells. A targeted email which avoids the spam box has a higher chance of getting a response than a call. With a call, the default allergic reaction is now "no." But with a brief and sincere email it could be, "hmmm, this might be interesting…" However, even cold emails do not work. To have a chance at making a sale, you need to get a warm introduction. It used to be that the business web was hidden inside of people's heads and rolodexes. Today, however, a lot of it is out there in the open - inside a digital business network called LinkedIn.

Warm Calling via LinkedIn

LinkedIn is a business network that has emerged as a substitute to the rolodex. Because it is online and self-managed, LinkedIn offers a much more robust way of maintaining your business connections and seeing what they are up to. But beyond that, LinkedIn has become an indispensable tool for business introductions.

Say you're interested in talking to Acme Co. about your new product. You log into LinkedIn and search for people who work for Acme. Then you see how you might be connected to them. Ideally connection is just one degree away, or in other words, you know someone who knows the person you are looking to connect with directly. And then you ask for an introduction.

An introduction received via LinkedIn is much warmer than a cold call, because it comes with a bit of trust. You are no longer a stranger trying to upsell things that no one needs, instead you come with a recommendation, however light, from a person that the receiver is connected to. And even if you can't find a path to connect to someone, sending a direct message via LinkedIn is better than sending a cold email. The reason is that LinkedIn implies business context, and so the person you're trying to reach likely is not going to be as surprised or angry about the unsolicited ping.

Creative Calling via Social Media

Beyond connecting on LinkedIn there are other modern means of connecting with people. Facebook message, Twitter @response, a comment on a photo or blog post, etc. These are ways of getting someone's attention that are creative, but you need to be careful when employing them because they can be unwelcome. People do not use Twitter to get unsolicited business pings, nor do they post pictures for strangers to comment on. Facebook is probably somewhat acceptable because a lot of people are mixing business contacts with friends there. But the most solid way of connecting with someone outside of LinkedIn is via their blog.

People who blog generally want to have a conversation. If you engage with someone around their blog and participate in a conversation on a topic that they are interested in, you will naturally connect with them. Particularly if your business engagement is relevant to the topic they are discussing, blog comments are likely the best way to engage. However, if you try to push the conversation off topic, the person will perceive you as disingenuous and there will be no business.

Transaction 2.0

Let's suppose you've found the right way to connect and you've got your meeting. Now you're looking at the whole sales cycle. Particularly, if you are small startup aiming to sell your product to a big company, has anything changed? Not really. You still have two fundamental hurdles - the time and the risk. Between startups and big companies expectations of how quickly the deal can get done are completely misaligned. Big companies are scared of the startup speed. Startups are frustrated with big companies' turtle pace.

Beyond the length of the sales cycle the issue that kills most transactions between startups and large firms is risk. Will this 5 person company be around tomorrow? That's a question that large companies are likely to answer with a "no" and that becomes a big problem. For this reason it doesn't make sense to buy from startups - it is too risky. However the mitigating factor is often cost - startup products are often cheaper or even free. Yet even if the technology is free and easy to remove if things don't work out, big companies are wary. They do not understand free, it scares them and perhaps rightly so.

The worst part about having a startup that sells to big firms is actually scale. The famous crossing of the chasm necessary to get big is really complicated. In the enterprise world, it means signing up many clients, keeping the pipes open, and sending out more and more products. This model is so costly and risky that venture capitalists are reluctant to shell out the money to fund it. Because of the complexity of building the enterprise business that knocks on doors a new model is emerging - web services and APIs.

Door Knocking 2.0: Web Services and APIs

How can a small start up that has no capacity to knock on doors sell to big companies? A possible answer can be via a web service or an API. The model is applicable to a whole range of services - from data plays like del.icio.us to messaging systems like Twitter to infrastructure like Amazon Web Services and semantic web services like Open Calais from Reuters. The basic model is to have a web service which is accessible via API (application programming interface). Clients sign up to use the service and have to agree to the terms in order to obtain a key. Using those keys, clients can use the service programmatically to send and get data from it.

Some examples: the del.icio.us API, allows clients to access information about specific users (if the user permits that). The Twitter API allows sending and receiving messages without using the Twitter web site. The Calais API is an example of a web service which encapsulates an algorithm. In this particular case, the algorithm takes a document and extracts semantic information from it. Unlike del.icio.us, which offers an interface to consumer data, Calais is a one shot deal algorithm. And perhaps the most important example of a web service play comes from Amazon. Taken collectively, the offered Amazon services is powerful infrastructure for building web-scale applications.

What is common between all these web services is the simple monetization strategy - pay per API call. For each call into the web service, the callee has to pay based on the amount of the resources consumed by the call. For example, Amazon has been charging for bandwidth, storage, and CPU time. The exact model does not matter as long as a fraction of a cent is charged for each call. Remarkably, this is a business that has a huge potential to scale. Each individual client is paying an affordable price, because each call into the web service is very cheap. However, collectively clients might amount to big revenue for the service provider.

What is the most attractive about this business model is that it is completely forecastable. By estimating the cost of scaling the business (mostly hardware, support and maintenance) and setting the price per web service call and the number of clients, you can determine if the business will work or not. Of course to be fair, we need to mention that just like in traditional sales, there is number of clients hidden in every equation. Two fundamental risks exist in this model - clients will not want to use the service and clients might not be able to figure out how to use it.

Still, the risks and costs of a web services based business are much less than the traditional enterprise approach. There is no need for an expensive sales force and an army of consultants to implement the solution. We are yet to see this model succeed in a major way, but because of their simplicity and straight revenue model the API based businesses are looking attractive.

Conclusion

Nothing stays constant in this world. The technology, the web and the society always evolve. Business development evolves along with everything else and lead generation has been changing along with methods of communication. Business networks like LinkedIn have replaced old rolodexes and email have made cold calling look ridiculous. Yet, there are no fundamental changes in the sales cycles and risks for startups that choose to go the traditional route of knocking on the doors of large companies.

The markets are iterating to come up with a new form of business development called web services. This new form is both cheaper and simpler - no enterprise sales force is needed to scale the business. However the question, "If we build it, will they come?" still remains unanswered. If any company can make this model work really well it is likely to be replicated and become widespread. Will web services succeed? Time will tell.

For now, please share your favorite examples and stories of business development 2.0 in the comments.

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February 20, 2007

Online Video Industry Index

Written by Emre Sokullu and edited by Richard MacManus

There are now so many companies vying to be the next YouTube, it's easy to lose track of them all. So let's take a look at the entire online video industry and categorize the major players. Our thanks to Ali Dagli of Savvian, for providing us a lot of the useful data listed here. 

In this post we've summarized the latest video industry innovations under the following categories:

  • Video Sharing
  • Intermediaries
  • Video Search
  • Video eCommerce
  • Video Editing & Creation
  • Rich Media Advertising
  • P2P (Peer To Peer)
  • Video Streaming
  • Vlogosphere

 

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March 19, 2008

Google Quality Rater's Guidelines - Entire Document

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