This LinkedIn sayonara message says it all.

Over the past several years, it’s been painfully evident to me as well as many other people that LinkedIn has become a sort of Potemkin Village regarding its professional groups.

While many groups boast enviable membership levels, there’s been precious little going on with them.

It’s almost as if the vast majority of people who signed up for membership in these groups did so only to be “seen” as being active in them – without really caring at all about actually interacting with other members.

And if any more proof were needed, try advertising your product or brand on LinkedIn.

Crickets.

Today I received the following message from Alex Clarke, digital content manager and moderator of the B2B Marketing LinkedIn group. You know them:  publishers of B2B Marketing, one of the most well-respected media properties in the marketing field.

We’ll let the Alex Clarke memo speak for itself:

What ever happened to LinkedIn Groups? What was once a bustling metropolis, teeming with valuable discussion and like-minded peers sharing success and insight has now become a desolate, post-apocalyptic wasteland – home only to spammers and tumbleweed. 

We’re sad, because, like many other groups, our 70,000+ strong LinkedIn community has become a stagnant place, despite constant love and attention and our best efforts to breathe life into its lonely corridors. 

That’s why we’re moving to a new home … Facebook: bit.ly/B2BGroupFB. 

We’re aiming to build a similar – and ultimately, better – community on this platform, with an eye on providing B2B marketers with a place to seek advice, share success, and connect with like-minded professionals in a well-moderated environment. 

We’ll still drop in to keep an eye on the LinkedIn Group, continuing to moderate discussions and approve new members, but much of our effort will be invested in building a brand-new community on Facebook. Many of you will already know each other, but please feel free to say hello!  We’re really excited to see where this goes, thanks for coming along with us.

So, while B2B Marketing will maintain a default presence on LinkedIn, what’s clear is that it’s abandoning that social platform in favor of one where it feels it will find more success.

Who knows if Facebook will ultimately prove the better fit for professional interaction. On the face of it, LinkedIn would seem better-aligned for the professional world as compared to than the “friends / family / hobbies / virulent politics / cat videos” orientation of Facebook.

Time will tell, of course.

Either way, this is a huge indictment of LinkedIn and its failure to build a presence in the cyberworld that goes beyond being a shingle for newly minted “business consultants,” or a place for people to park their resumes until the time comes when they’re ready to seek a new job.

It’s quite a disappointment, actually.

“I’m just so busy!” becomes the new social status signal.

In an era of almost constant “disruption” both socially and politically, it’s always interesting to hear the perspectives of people who devote their energies to thinking about the “larger implications.”

Author and MarComm über-thought leader Gord Hotchkiss is one of those individuals whose writings about the intersection of technology and human behavior are invariably interesting and thought-provoking.

His latest theory is no exception.

In a recent column published in MediaPost, Hotchkiss posits that the social status hierarchy of people may be moving away from “conspicuous consumption” and more towards the notion of “time” as the status symbol.

Hotchkiss writes:

“‘More stuff’ has been how we’ve determined social status for hundreds of years. In sociology, it’s called conspicuous consumption — a term coined by sociologist Thorstein Veblen.  It’s a signaling strategy that evolved in humans over our recorded history. 

 The more stuff we had — and the less we had to do to get that stuff — the more status we had. Just over 100 years ago, Veblen called those who significantly fulfilled these criteria the Leisure Class.”

Gord Hotchkiss

Looking at how social dynamics and social status are playing out today — at least in North America — Hotchkiss paints picture that is quite different from before:

“A recent study seems to indicate that we now associate ‘busy-ness’ with status. Here, it’s time, not stuff, that is the scarce commodity.  Social status signaling is more apt to involve complaining about how we never go on a vacation than about our ‘summer on the continent.'”

Interestingly, the very same research methodology that uncovered this set of attitudes in the United States was conducted in Italy as well. And there, the findings were exactly the opposite.

Perhaps it shouldn’t surprise us that in Italy, every employee is entitled to at least 32 days of PTO per year, whereas in the United States the minimum number of legally required paid holidays is … zero.

Looked at from another perspective, perhaps today’s social status indicators in North America are merely the Protestant Work Ethic in action, but updated to the 21st century.

Either way, the residents of Italy probably see it as a heck of a way to live …

Programmatic ad buying takes a hit.

There are some interesting new trends we’re now seeing in programmatic ad buying. For years, purchasing online ads programmatically instead of directly with specific publishers or media companies has been on a steady increase.  No more.

MediaRadar has just released its latest Consumer Advertising Report covering ad spending, formats and buying patterns. The new report states that programmatic ad buying declined ~12% when comparing the first quarter of 2017 to the same period in 2016.

More specifically, whereas ~45,000 advertisers purchased advertising programmatically in Q1 2016, that figure has dropped to around ~39,500 for the same quarter this year.

This change in fortunes may come as a surprise to some. The market has generally been bullish on programmatic ad buying because it is far less labor-intensive to administrator those types of programs compared to direct advertising programs.

There have been ongoing concerns about the potential of fraud, the lack of transparency on ad pricing, and control over where advertisers’ placements actually appear, but up until now, these concerns weren’t strong enough to reverse the steady migration to programmatic buying.

Todd Krizelman, CEO of MediaRadar, had this to say about the new findings:

“For many years, the transition of dollars from direct ad buying to programmatic seemed inevitable, and impossible to roll back. But the near-constant drumbeat of concern over brand safety and fraud in the first six months of 2017 has slowed the tide.  There’s more buying of direct advertising, especially sponsored editorial, and programmatically there is a ‘flight to quality’.”

Krizelman touches on another major new finding from the MediaRadar report: how much better native advertising performs over traditional ad units. Audiences tend to look at advertorials more frequently than display ads, and the clickthrough rates on mobile native advertising, in particular, are running four times higher than what mobile display ads garner.

Not surprisingly, the top market categories for native advertising are ones which lend themselves well to short, pithy stories. Travel, entertainment, home, food and apparel categories score well, as do financial and real estate stories.

The MediaRadar report is based on some pretty exhaustive statistics, with data analyzed from more than 265,000 advertisers covering the buying of digital, native, mobile, video, e-mail and print advertising. For more detailed findings, follow this link.

What’s up with personal assistant apps?

Apple Siri loses a chunk of users, but it still possesses the biggest share of the AI-powered personal assistant apps market.

With the entry of new personal assistant apps, it’s only logical that there would be a shift in market share between the established players and the upstarts.

That trend is underscored in statistics recently published by Verto Analytics which are based on behavioral data gleaned from ~20,000 U.S. consumers via passive metering of their digital devices.

According to Verto, the current share of usage among the seven top personal assistant apps breaks down as follows:

  • Apple Siri: 41MM monthly U.S. users (~44%)
  • Samsung S Voice: 23MM (~25%)
  • Google Text-To-Search: 20MM (~21%)
  • Google Home: 5MM (~5%)
  • Amazon Alexa: 3MM (~3%)
  • Google Allo: 1MM (~1%)
  • Microsoft Cortana: 1MM (~1%)

These stats show the degree to which the top three apps continue to dominate the U.S. market. However, they don’t tell the entire story.  A more interesting trend is what’s happening with the number of monthly users by app. In the case of Siri, its monthly user figure has dropped a full 15% in the past year – or about 7 million monthly users lower than in 2016.

Samsung, #2 on the list, also experienced a decline in monthly users – in its case a drop of 8%, or about 2 million fewer users compared to 2016.

Google Home also experienced a slide in subscribers, although #3 ranged Google Text-To-Search did grow.

The biggest growth trends in personal assistant apps were experienced by Alexa (up ~325%) and Cortana (up ~350%). Both apps were starting from a very low baseline, however, and today they still number only around 3 million and 1 million monthly users respectively.

Another interesting dynamic is the level of engagement each of these personal assistant apps generates. As it turns out, there is a direct correlation between overall user growth and levels of engagement, so it’s pretty clear where most of the “go-go” action is at the moment:  Alexa and Cortana.

Perhaps most significantly, the Verto report suggests that personal assistant apps are of more utility to users than search apps such as Google or Yelp. Approximately 45% of smartphones owned by U.S. adults contained a personal assistant app that was used at least once during the month of May 2017.  Compare that to the percent of smartphones that had a search app installed over the same period:  just 34%.

It goes to show that among personal assistant apps broadly, the market is quite robust even if it’s fragmenting rather than consolidating.

Chief Marketing Officers and the revolving door.

If it seems to you that chief marketing officers last only a relatively short time in their positions, you aren’t imagining things.

The reality is, of all of the various jobs that make up senior management positions at many companies, personnel in the chief marketing officer position are the most likely to be changed most often.

To understand why, think of the four key aspects of marketing you learned in business school: Product-Place-Price-Promotion.

Now, think about what’s been happening in recent times to the “4 Ps” of the marketing discipline. In companies where there are a number of “chief” positions – chief innovation officers, chief growth officers, chief technology officers, chief revenue officers and the like – those other positions have encroached on traditional marketing roles to the extent that in many instances, the CMO no longer has clear authority over them.

It’s fair to say that of the 4 Ps, the only one that’s still the clear purview of the CMO is “Promotion.”

… Which means that the chief marketing officer is more accurately operating as a chief advertising officer.

Except … when it comes to assigning responsibility (or blame, depending on how things are going), the chief marketing officer still gets the brunt of that attention.

“All the responsibility with none of the authority” might be overstating it a bit, but one can see how the beleaguered marketing officer could be excused for thinking precisely that when he or she is in the crosshairs of negative attention.

Researcher Debbie Qaqish at The Pedowitz Group, who is also author of the book The Rise of the Revenue Marketer, reports that as many as five C-suite members typically share growth and revenue responsibility inside a company … but the CMO is often the one held responsible for any missed targets.

With organizational characteristics like these, it’s no wonder the average CMO tenure is half that of a CEO (four years versus eight). Research findings as reported by Neil Morgan and Kimberly Whitler in the pages of the July 2017 issue of the Harvard Business Review give us that nice little statistic.

What to do about these issues is a tough nut. There are good reasons why many traditional marketing activities have migrated into different areas of the organization.  But it would be nice if company organizational structures and operational processes would keep pace with that evolution instead of staying stuck in the paradigm of how the business world operated 10 or 20 years ago.

Rapid change is a constant in the business world, and it’s always a challenge for companies to incorporate changing responsibilities into an existing organizational structure.  But if companies want to have CMOs stick around long enough to do some good, a little more honesty and fairness about where true authority and true responsibility exist would seem to be in order.

Employee churn rates underscore the volatile nature of e-mail contact databases.

Most marketers are well-familiar with the challenges of e-mail list maintenance. In the business-to-business world in particular, e-mail databases can become pretty stale pretty quickly, due to the horizontal and vertical movement of employees inside organizations as well as jumping to other companies.

Whether they’re moving up or out, often they’re no longer good prospects.

Based on my experience, my personal rule of thumb has been that approximately one-fifth of any given list of B-to-B names will “churn” within a 12-month period, meaning that any such contact database will rapidly lose its effectiveness unless assiduously maintained.

And now we have a new report from Salesforce Research that confirms this basic rule of thumb.

Salesforce looked to LinkedIn, exploring this social platform’s data from more than 7 million records over a 48-month period to gauge the lifecycle of the typical “persona.”

The research considered not only changes that result in the deactivation of an e-mail address, but also circumstances where individuals may keep the same e-mail address but still should be removed as a target because a horizontal or vertical change within the same organization places them in a different employee function.

What the new research found was that the average annual B-to-B churn rate for such “personas” is ~17%.

That figure turns out to be fairly close to my basic rule of thumb based on years of observing not only e-mail contact databases, but also the postal mail databases we’ve worked with in my company or with our clients.

Beyond the broad average, there are some small but meaningful differences in the B-to-B churn rate depending on the product focus and on the type of employee function.

In high-tech fields, the average annual churn rate is higher than the average. And it’s across the board, too:  23% churn in marketing … 20% in sales and in HR personnel … 19% in IT, and 18% in finance.

People employed in the retail and consumer products industries also clock in at or higher than the overall churn average, but the annual churn rate is a tad lower in the medical and transportation fields.

Another interesting finding from the Salesforce evaluation is that annual churn rates are somewhat lower than the average for personnel at director levels and higher in companies (around 15%). For managers, the churn rate matches the overall average, while “worker bees” have a higher churn rate averaging around 20%.

Considering the critical importance of e-mail marketing efforts in the B-to-B environment, Salesforce’s finding that it takes only 4.2 years for an e-mail database to churn completely means that the value of these marketing assets will decline dramatically unless cultivated and maintained on an ongoing basis.

The volatile nature of e-mail contact databases also helps explain why so many companies have adopted a multi-channel approach to marketing, including interacting on social media platforms. Yes, those platforms do have their place in the B-to-B world …

The full report of the Salesforce findings can be downloaded here.