Amazon’s Spark that Fizzled …

Amazon Spark: Less like a sizzle … more like a fizzle.

It’s now been more than nine months since Amazon launched its social media platform Spark … and so far, it’s hardly sizzled.

In fact, it’s made barely a ripple in the market.

There are plenty of people who contend that the last thing the world needs is yet another social network. But others would like to see new alternatives to the recently beleaguered Facebook platform.

As for its trajectory, it looks as if Spark is following the former rather than the latter path. The question is, “Why?”

Very likely, the answer lies in Spark’s questionable underlying raison d’etre.  Essentially, Spark is a social feed of photos and other images. That makes it similar to Instagram … sort of.

One difference between the two platforms is that Spark is open to exclusively to Amazon Prime members.  That limits the potential number of Spark users pretty severely, right from the get-go.  [It’s true that non-members can view Spark feeds — but they can’t post their own content. And what’s a social platform if you cannot interact with it?  It isn’t one.]

Another difference with Instagram may be even more of a fundamental problem. The rationale for Spark is to focus on products that Amazon sells.  Spark is directly “shoppable,” which differentiates it from Instagram and other social networks.  It also makes it less like a true social network and more like a garden-variety e-commerce site.

In other words, rather than being an interesting and engaging social platform, Spark is boring. Informative – but boring.

It isn’t that Amazon/Spark allows brands themselves to post content there; posting privileges are granted only to people it dubs “enthusiasts” or “onsite associates.” Brands must seek out “regular people” [sic] who are members of Amazon Prime to post content on their behalf about their products.

And I’m sure that’s happening – along with varying levels and forms of compensation flowing to these supposed “enthusiasts” in return for the product plugs. But can anyone imagine less compelling content than what results from this kind of commercialized “AstroTurfing”?  No wonder people are ignoring this social media platform.

Andrew Sandoval, a group director for media planning agency The Media Kitchen, summarizes Spark’s predicament by noting that lifestyle-focused people tend congregate on Instagram — a place that shows people living their lives through products. By contrast, “Amazon Spark is mostly just talking about your products, which is the hard-sell.  Ultimately, the e-commerce social experience is a little too far from the social experience,” Sandoval opines.

Have you interfaced with Spark since its July 2017 launch? If so, do you see redeeming qualities about the platform that the rest of us might be missing?  Please share your comments with other readers.

The New York Times: Out of print in ten years?

It isn’t anything particularly special to hear people talking about the declining market for print newspapers, and how market dynamics and demographic trends have put the traditional newspaper publishing model at risk.

At the same time, most newspaper publications have found it quite challenging to “migrate” their print customers to paid-subscription digital platforms. The plethora of free news sites online makes it difficult to entice people to pay for digital access to the news – even if the quality of the “free” coverage is lower.

New York Times CEO Mark Thompson, appearing on CNBC’s Power Lunch program (February 12, 2018).

But it was quite something to hear a forecast made by Mark Thompson, The New York Times’ CEO.  Earlier this month, Thompson made remarks during CNBC’s Power Lunch broadcast that amounted to a prediction that the NYT’s print edition won’t be around in another ten years.

Thompson went on to explain that his company’s objective is to build the digital product even while print is going away:

“The key thing for us is that we’re pivoting. Our plan is to go on serving our loyal print subscribers as long as we can.  But meanwhile, to build up the digital business so that we can have a successful growing company and a successful news operation long after print is gone.”

It’s one thing for newspapers in various cities across the country to be facing the eventuality of throwing in the towel on their print product. It’s quite another for a newspaper as vaunted as The New York Times to be candidly predicting this result happening.

It would seem that the NYT, along with the Washington Post, The Wall Street Journal and possibly USA Today would be the four papers most able to preserve their print editions because of their business models (USA Today’s hotel distribution program) or simply because of their vaunted reputations as America’s only daily newspapers with anything approaching nationwide distribution.

I guess this is what makes the Thompson remarks so eyebrow-raising. If there isn’t a long-term future for The New York Times when it comes to print, what does that say about the rest of the newspaper industry?  “Hopeless” seems like the watchword.

It will be interesting indeed if, a decade from now, we find no print newspapers being published in this country save for hyper-local news publications – the ones which rely on print subscribers seeing their friends and family in the paper for weddings, funerals, community activities, school sports and other such parochial (or vanity) purposes.

Interesting … but a little depressing, too.

Consumer reviews are important to online shoppers. So, are more people participating now?

Based on new research, the time-honored “90-9-1 rule” may no longer be accurate.

The 90-9-1 rule states that for every 100 people active online, one person creates content … nine people respond to created content … and 90 are merely lurkers – consuming the information but not “engaging” with it at all.

But now we have a survey by ratings and reviews platform Clutch which suggests that the ratio may be changing. The Clutch survey finds that around 20% of online shoppers have written reviews for some of their purchases.

That finding would seem to indicate that more people are now involved in content engagement than before. Still, when just one in five shoppers are writing and posting customer reviews, it continues to represent only a distinct minority of the market.

So, the big question for brands and e-commerce providers is how to encourage a greater number of people to post reviews, since such feedback is cited so often as one of the most important considerations for people who are weighing their choices when purchasing a new product or service.

A few of the ways that businesses have attempted to increase participation in customer reviews include:

  • Make the review process as efficient as possible by requesting specific feedback through star ratings.
  • Provide additional rating options on product/service performance sub-categories through quick guided questions.
  • Offering incentives such as a contest entry might also help gain more reviews, although the FTC does have regulations in place that prohibit offering explicit incentives in exchange for receiving favorable reviews.
  • Providing timely customer service – including resolving products with orders – can also increase the likelihood of garnering reviews that are positive rather than negative ones.

This last point is underscored by additional Clutch results which, when the survey asked why online shoppers write reviews, uncovered these reasons:

  • Was especially satisfied with the product or service: ~33%
  • Received an e-mail specifically requesting to leave feedback: ~23%
  • Was offered an incentive to leave feedback: ~5%
  • Was especially dissatisfied with the product or service: ~2%

For companies who might be concerned that negative feedback will be given lots of play, the 2% statistic above should come as some relief. And even if a negative review is published, the situation can often be rectified by reaching out to the reviewer and providing remedies to make things right, thereby “turning lemons into lemonade.”

After all, most consumers are pretty charitable if they sense that a company is making a good-faith effort to correct a perceived problem.

Changing Cross-Currents in E-Mail Marketing

Many marketers find it one of the easiest marketing tactics to execute … but also one of the least effective in terms of results.

In the realm of digital marketing, e-mail marketing has to be one of the most mature choices of tactics these days. It’s been around for a long time, and its relatively small hard-dollar costs make it one a natural “go-to” marketing tactic for many companies.

But today, a declining percentage of marketers see e-mail as one of their most effective tactics in the digital marketing arsenal.

So, what’s the problem?  Many companies have the technology and skills in place to perform e-mail programs using in-house resources. That’s the good news.

The not-so-good news is that more companies are seeing their e-mail programs becoming less effective — for a variety of reasons. Among them are these:

  • E-mail filtering technology is making it more difficult to land e-mails into inboxes.
  • Privacy regulations are becoming more stringent.
  • Overuse of this marketing tactic means more e-mail messages than ever from more companies are being deployed – and with that, more of them are being ignored by recipients.
  • While e-mail used to be the only digital direct marketing game in town, today there are a bigger variety of ways to engage with customers and prospects.
  • Building a high-performing e-mail list that also conforms to regulatory stipulations is more challenging than ever.

This last point is particularly nettlesome for marketers: Data quality and data management are considered among the most difficult challenges for marketers – and also among the least effective in terms of their success.

So, in some ways the factors affecting the use of e-mail marketing are working at cross-purposes. E-mail marketing is easier to execute than other digital marketing endeavors … but as for its effectiveness, many marketers rate other tactics higher, including content marketing and search engine optimization.

In the coming years, it will be interesting to see how attitudes and behaviors regarding e-mail continue to evolve. Will this time-honored tactic decline in importance, or find new life?  Stay tuned …

Fact Checkers: The “New-Old” Job in Journalism

The topic of “fake news” is all over the journalism ecosphere these days. It’s the subject of charges and countercharges tossed back and forth between politicians, industry specialists, the scientific community and the media.

In the current environment, even the slightest mistake in the media – no matter how innocuous – can turn into a contentious social media debate, whereas in the past it might have merited just a quick corrective notation as a follow-up.

These days, more often than not everyone gets sullied in the process – even innocent parties caught in the crossfire.  So, it isn’t surprising that as the issue of “fake news” has risen in prominence, fact checking in journalism has taken on more importance than ever.

An IFCN global summit conference held in Madrid Spain in July 2017.

In 2015, the Poynter Institute established its International Fact-Checking Network to support initiatives aimed at ensuring better accuracy and journalistic best practices. In addition, over the past year the New York Times and several other prominent newspapers have brought more fact checkers on board – not merely to verify the information being reported, but also to work in “real time” with journalists – checking breaking news stories for accuracy as they are being produced.

These new fact-checking resources have been added without a lot of fanfare, but it’s a quiet acknowledgement that the “fake news” controversy is one that strikes at the heart of the press’s reputation.

But there’s a significant shortcoming:  The new emphasis on fact-checking is consequential in just one corner of the news universe.  The arena of “news” now extends well beyond traditional outlets to also encompass social media platforms, blogs and a myriad of informational websites that frequently offer a distinct “point of view” in their reporting.

So, while the fact-checking resurgence may help buttress the reputation of “legacy” news organizations such as high-profile newspapers, national TV networks and marquee online news sites, that doesn’t mean it’s reaching into the many other places where people encounter and consume news.

I suspect that the “fake news” phenomenon is going to be with us for the foreseeable future, despite all of the good-faith efforts to keep it in check.

Does “generational marketing” really matter in the B-to-B world?

For marketers working in certain industries, an interesting question is to what degree generational “dynamics” enter into the B-to-B buying decision-making process.

Traditionally, B-to-B market segmentation has been done along the lines of the size of the target company, its industry, where the company’s headquarters and offices are located, plus the job function or title of the most important audience targets within these other selection criteria.

By contrast, something like generational segmenting was deemed a far less significant factor in the B-to-B world.

But according to marketing and copywriting guru Bob Bly, things have changed with the growing importance of the millennial generation in B-to-B companies.

These are the people working in industrial/commercial enterprises who were born between 1980 and 2000, which places them roughly between the ages of 20 and 40 right now.

There are a lot of them. In fact, Google reports that there are more millennial-generation B-to-B buyers than any other single age group; they make up more than 45% of the overall employee base at these companies.

Even more significantly, one third of millennials working inside B-to-B firms represent the sole decision-makers for their company’s B-to-B purchases, while nearly three-fourths are involved in purchase decision-making or influencing to some degree.

But even with these shifts in employee makeup, is it really true that millennials in the B-to-B world go about evaluating and purchasing goods and services all that differently from their older counterparts?

Well, consider these common characteristics of millennials which set them apart:

  • Millennials consider relationships to be more important than the organization itself.
  • Millennials want to have a say in how work gets done.
  • Millennials value open, authentic and real-time information.

This last point in particular goes a long way towards explaining the rise in content marketing and why those types of promotional initiatives are often more effective than traditional advertising.

On the other hand … don’t let millennials’ stated preferences for text messaging over e-mail communications lead you down the wrong path. E-mail marketing continues to deliver one of the highest ROIs of any MarComm tactic – and it’s often the highest by a long stretch.

Underscoring this point, last year the Data & Marketing Association [aka Direct Marketing Association] published the results of a comparative analysis showing that e-mail marketing ROI outstripped social media and search engine marketing (SEM) ROI by a factor of 4-to-1.

So … it’s smart to be continually cognizant of changing trends and preferences. But never forget the famous French saying: Plus ça change, plus c’est la même chose

YouTube: It’s bigger than the world’s biggest TV network.

Just a few years ago, who would have been willing to predict that YouTube’s user base would outstrip China Central Television, the world’s largest TV network?

Yet, that’s exactly what’s happened: As of today, around 2 billion unique users watch a YouTube video at least once every 90 days, whereas CCT has around 1.2 billion viewers.

Consider that in 2013, YouTube’s user base was hovering around 1 billion. So that’s quite a jump in fewer than five years.

Here’s another interesting YouTube factoid: Nearly 400 hours of video content is being uploaded to YouTube each and every minute.

For anyone who’s tallying, this amounts to 65 years of video uploaded to the channel per day. No wonder YouTube has become the single most popular “go-to” place for video content.

But there’s more:  Taken as a whole, YouTube viewers across the world are watching more than 1 billion hours of video daily. That’s happening not just because of the wealth of video content available; it’s also because of YouTube’s highly effective algorithms to personalize video offerings.

One of the big reasons YouTube’s viewership has expanded so quickly goes back to the year 2012, which is when the channel started building those algorithms that tap user data and offer personalized video lineups. The whole purpose was to give viewers more reasons to watch more YouTube content.

And the tactic is succeeding beautifully.

Another factor is Google and its enormous reach as a search engine. Being that YouTube and Google are part of the same commercial enterprise, it’s only natural that Google would include YouTube video links at the top of its search engine results pages, where viewers are inclined to notice them and to click through to view them.

Moreover, Google pre-installs the YouTube app on its Android software, which runs nearly 90% of all smartphones worldwide.

The average run time for a YouTube video is around three minutes, with some 5 billion videos being watched on YouTube in the typical day.

Considering all of these stats, it’s very easy to understand how Internet viewing of video content is well on the way to eclipsing overall television viewing before much longer. As of 2015, TV viewing still outpaced interview viewing by about margin of about 56% to 44%.  But when you consider that TV viewing is stagnant (or actually declining a bit), while interview viewing continues to gallop ahead, the two lines will likely cross in the next year or two.

What about you? Like me, have you found that your video viewing habits have changed in the direction of YouTube and away from other platforms?