Copywriting by computer: Wave of the future? … or wild-ass pipe dream?

persado logoIn recent years, computers have upended many a job category.  And they include quite a few positions involving “language” – from foreign language translators to medical transcriptionists.

And now, it looks like copywriting itself may be the next domino to fall.

Earlier this year, The Wall Street Journal published a story about Persado, a company which has developed a software algorithm that enables it to write copy without the human element.

David Atlas, the company’s chief marketing officer, refers to it as “algorithmic copywriting.”  The process creates sentences with a maximum length of 600 characters that are used for e-mail subject lines and other short persuasive copy.

Persado builds the copy by sending thousands of different e-mail subject lines to the e-databases of its clients, which include large retailers and financial services firms such as Overstock.com, AMEX and Neiman Marcus.  Response rates are measured and used to refine the subject lines to narrow them down to just the most effective.

Company PR spokesperson Kirsten McKenna explains the Persado edge further:

“Typical A/B testing will send out only a few messages – then go with the one that gives the best response.  Persado can send out thousands of permutations of the same message to determine which would be the most successful.”

Alex Vratskides
“We have never lost to a human.” — Alex Vratskides of Persado

Comparing Persado’s machine-generated results with traditional copywriting, “We have never lost to a human,” Alex Vratskides, the company’s president, claimed to The Wall Street Journal.

Those results would suggest that Persado is doing things right.  And here’s another positive indicator of success:  The company raised over $20 million in venture capital earlier this year.

The bigger question is whether Persado will be able to scale its simple and short-sentence copywriting into persuasive copy for longer-form marketing materials such as sales letters and brochures – which would make it an even bigger threat and seriously threaten to upend the traditional copywriting field.

For the answer to that question, I’d never want to take issue with the views of veteran copywriter Bob Bly, whose perspectives I respect a great deal.  In writing on this topic, he states:

Bob Bly
Bob Bly

“I do think that either already or very soon, software will equal or surpass the performance of human writers in both simple content and short copy.  We have to prepare for the eventuality that computers may someday beat human direct response copywriters in long-form copy, just as Deep Blue beat Kasparov in chess and Watson clobbered Ken Jennings in Jeopardy.  Ouch.”

What do you think?  Is computer copywriting the wave of the future?  Let’s hear your own perspectives.

What’s driving innovation in consumer packaged goods these days?

Consumer packaged goodsWith the steady rise in the number (and variety) of consumer packaged goods offerings, one might wonder if the factors that drive CPG innovation are the same today as they’ve been in the past.

There’s no dearth of research to help give us clues to the answer.  In the first half of this year alone, major CPG research results have been published by the likes of Accenture, Deloitte, Forrester, IRI and Kantar – and that just covers the first half of the alphabet!

The broad takeaway from these reports is that there are six major trends driving innovation in the industry.  Three of them are just as important as they’ve ever been, and three additional ones are becoming more significant as time goes on.

The three “classic” trends that drive CPG innovation as much as ever are convenience, value, and specialization.

They’re fundamental, they’re significant, and they haven’t lost their importance based on what’s happening in the larger marketplace or the economy:

Convenience is a major driver because consumers are always looking to get what they need faster and with less effort than before.  If a product saves time and delivers multi-benefit solutions, consumers will respond.

Value is always perennially important.  When the perceived value of a product goes down because of price pressures or a lack of differentiating benefits, brand loyalty is adversely affected.

Specialization – Product formulation and packaging can affect the way consumers feel about products.  The more that can be provided in the way of a “just-for-me” solution as opposed to “one-size-fits all,” the better.

If they concentrate on these three trends, most CPG brands do pretty well.  But there are three additional trends that appear to be gaining momentum.  Add them to the repertoire, and an additional competitive edge can be established:

Portability – As consumers’ lives have become more mobile than ever, a premium is placed on brand that can deliver on-the-go offerings.

Environmental Impact – It’s been a long time coming, but this trend finally appears to be reaching some semblance of critical mass. More consumers are considering environmental factors — not just as attributes for products that are “nice to possess,” but actually necessary for making a responsible choice. It’s more than the product itself; it’s also sourcing, manufacturing, distribution and disposal.

Health Impact – The days of CPG products being big on convenience but bad on health are numbered. Thanks to better education and more out-of-pocket medical-related cost responsibilities, health awareness among consumers has never been higher. It may not be translating yet into improved health metrics like lower obesity rates, but there’s pretty clear evidence that more people understand health risks and are taking more responsibility for their own personal health and that of their family members.  Products that can credibly claim to “healthy” benefits stand to gain in the competitive landscape.

Do you feel that there are other trends besides these six that that are influencing the development of consumer packaged goods today?  Perhaps ones associated with cultural diversity … or something else?  If so, please share your thoughts with other readers here.

Which brands are America’s most “patriotic”?

patriotismWith the 4th of July holiday nearly upon us, sharing the results of a recent brand study seems particularly apropos.

Since 2013, Brand Keys, a branding consulting firm, has conducted an annual evaluation of famous American brands to determine which ones are considered by consumers to be the most “patriotic.”

In order to discover those attitudes, Brand Keys surveyed nearly 5,500 consumers between the ages of 16 and 65, asking them to evaluate American brands on a collection of 35 cross-category values – one of which was “patriotism.”  (The number of brands included in the evaluation has varied somewhat from year to year, ranging between 195 and 225.)

Of course “patriotism” is a hyper-qualitative measure that’s based as much on emotion and each individual person’s own point of reference as on anything else.

Brand familiarity and longstanding engagement in the marketplace helps, too.

So it’s not surprising that the American brands scoring highest on the patriotism meter are some of the best-known, iconic names.

For the record, listed below are the “Top 10” most patriotic American brands based on Brand Keys’ most recent survey – the ones that scored 91% or higher on the patriotism scale (out of a possible 100 percentage points):

  • Jeep (98%)
  • Coca-Cola (97%)
  • Disney (96%)
  • Ralph Lauren (95%)
  • Levi Strauss (94%)
  • Ford Motor (93%)
  • Jack Daniels (93%)
  • Harley Davidson (92%)
  • Gillette (92%)
  • Apple (91%)
  • Coors (91%)

The next highest group of ten patriotic brands scored between 85% and 90% on the survey:

  • American Express (90%)
  • Wrigley’s (90%)
  • Gatorade (89%)
  • Zippo (89%)
  • Amazon (88%)
  • Hershey’s (87%)
  • Walmart (87%)
  • Colgate (86%)
  • Coach (85%)
  • New Balance (85%)

[As an aside … the only entity to score a perfect patriotism rating of 100% was the U.S. Armed Services.]

To be sure, “rational” aspects like being an American-based company whose products are actually made in the United States affect the patriotism rating of individual brands.

But other attributes — such as nationally directed customer-service activities and highly publicized involvement in sponsorships and causes that tie to the American experience — are attributes that add to a general image of being patriotic.

Robert Passikoff, Brand Keys’ president, expanded on the idea, stating,

“Today, when it comes to engaging consumers, waving an American flag and actually having an authentic foundation for being able to wave the flag are two entirely different things — and the consumer knows it. 

“If you want to differentiate via brand values – especially one this emotional – if there is believability, good marketing just gets better.” 

This is the third annual report issued by Brand Keys that’s been focused on brand patriotism – one of 35 brand values comparatively surveyed.  Over the three years, there’s been some change in the patriotism rankings, with Colgate, Wrigley’s and Zippo falling out of the Top Ten and being replaced by Jack Daniels, Gillette, Apple and Coors in 2015.

What I find intriguing about the findings is that there isn’t a very strong correlation between the perceived patriotism of specific American brands and whether or not most of their products are made in the United States versus offshore.   Of course, foreign production is more the norm than ever in the global economy.  What’s important is how the consumer reacts to that reality.

jeep patriotismWith that point in mind … what about Jeep?  Now that it is part of the global Fiat organization, should Jeep no longer be considered an American brand?  Whether it is or not, the brand has the distinction of achieving the highest patriotism score outside of the U.S. Armed Services.

The bottom line is this:  Brands, what they “mean” and what they stand for are based on the emotional as well as the rational – with the emotional aspect being the trump card with consumers.

Jeep, with all of its associations with winning  wartime campaigns (particularly World War II), likely will always be a beloved “patriotic” U.S. brand, regardless of its recent Italian parent company ownership.

Are there brands not listed above that you would consider to be “highly patriotic”?  If so, please share your thoughts with other readers here.

Are young marketers now the “smartest people in the room”?

Deanie Elsner
Deanie Elsner

Recently I read about some interesting remarks made by Deanie Elsner, who is the former executive vice president and chief marketing officer of Kraft Foods.

Ms. Elsner made them as the keynote speaker at the Tapad Unify Tech 2015 cross-screen technology conference held in mid-June.  The gist of her argument was that senior-level marketers and heads of companies are most often the ones who are the “ball and chain” in a company when it comes to following effective marketing practices.

The way Elsner sees it, too few of these officials understand digital marketing as an integrated program that commingles data with a coordinated brand strategy:

“When you ask marketers to define digital strategy, they will give you ‘random acts of digital’ rather than an holistic strategy informed by data, with KPSs and data points that prove success.”

It doesn’t help that most upper-level managers are part of the Baby Boomer generation or just slightly younger, whereas most of the big developments in marketing technology and the communications landscape are being driven by Millennials.

[An aside:  recently we learned that Millennials, at 87 million strong, are now this country’s largest age cohort — ~14% larger than Baby Boomers.  And they’ll only grow more important in the coming decade or two as the Boomer generation passes into retirement and then into history.]

Millennials-vs-Boomers

In Elsner’s view, Millennial employees understand something that their older counterparts generally don’t see, which is that the “one-way communications” perspective on advertising and promotion is no longer so important — or even relevant.

I can see her point.  Consumers today are the ones determining the conversation and the agenda.  It’s up to marketers to figure out the best ways to follow that agenda and to use the best tools to make it happen.

But then Elsner makes this bold statement that I’m not sure is totally accurate:

“Your smartest person is your most junior talent.  The most dangerous, potentially, is the current CEO, because what they know doesn’t exist anymore.”

I don’t disagree that junior talent “gets” the modern communications environment more inherently than older employees.  However … younger talent is prone to the opposite extreme:  making assumptions based the latest trends for the youngest audiences.

When that happens, people can misread how industry changes affect consumers of all age levels, other demographics and psychographics.

In fact, in my work with numerous corporate clients, often the “smartest person in the room” is the one who’s over the age of 65.  And why not?  The reality is that irrespective of the seismic changes in marketing, there’s a lot to be said for 20 or 30 years of life experience to truly understand what makes human beings “tick” … why people are often so different … and what makes them choose to do the things that they do.

So the bottom line is actually this:  Both younger and older marketers are important and can bring a lot to the table, and there’s more than enough respect to go around.

Amazon turns the page on yet another publishing maxim.

The publishing industry’s “primary disruptor” will start paying authors based on pages read, not e-books purchased. 

AmazonBeginning next month, Amazon is ushering in its next big change in the world of publishing … and it’s a pretty fundamental shift.

Instead of paying royalties to authors based on how many e-books have been sold, Amazon will start paying authors based on how many pages of their books consumers have read.

For now, the program applies just to self-published authors who are on Amazon’s KDP Select Program — but you can bet that if the experiment plays out well, it’ll likely expand.

Currently, Amazon remunerates its native authors on a monthly bases based on the number of times their e-books are accessed through two Kindle service programs:

The new change will shift away from paying authors based on each book accessed, and instead pay based on each page that readers access (and that remains on the screen long enough to be parsed).

Who will be the winners and losers in this new approach to compensation?  Certainly, some people have criticized the current payment scheme for benefiting authors of smaller books more than those who write longer tomes.  The change may improve matters for the latter because of the additional pages that make up their e-books.

But is that really the case?  Many large volumes are reference-oriented book or fall into other non-fiction categories, such that a reader may be interested in accessing only a few pages within the books in any case.

But on the fiction side, authors may find themselves attracted to writing the kind of “cliffhanger” story lines that keep readers turning the pages.

However it shakes out, one thing seems destined to change.  The old saw that “it doesn’t matter how many people read a book — only how many purchase it” may well be on the way out.

What are your thoughts about Amazon’s new remuneration policy?  On balance, is it good for authors — or for the world of books in general?  Feel free to share your comments with other readers.

On the march: Ad blocking tools continue their rise in popularity.

What Adblock PromisesI’ve blogged before about the rise of online ad blocking tools and their growing popularity with consumers.

One example:  AdTrap – a device that intercepts online ads before they reach any devices that access a person’s Internet connection.

AdTrap’s motto is simple and powerful:  “The Internet is yours again.”

In the months and years since I first blogged about it, ad blocking has only become more popular – so much so that it’s no longer just a mild irritant to advertisers and publishers, but rather a commercial threat that has a significant impact on publishers’ financial bottom lines.

It’s hardly surprising.  Most people want to run as far away from advertising as they can.  For years, we’ve taken trips to the kitchen or bathroom during TV commercial breaks.  We’ve TiVo’d ads out of existence.

And the participation levels in online ad blocking bear this out now as well.  According to data from PageFair, a company that measures publishers’ ad blocking rates and provides alternative non-intrusive advertising options, the number of ad blocker tool users reached nearly 145 million people in 2014.

That’s more than five times the 21 million users of ad blocker tools we had in 2010.

Growth continues apace:  Adblock Plus, which is the biggest of the ad blocking tools, reports more than 2.3 million downloads each week, on average.

Where are people blocking online ads?  In all sorts of areas.  But the most frequent incidence of ad blocking is on gaming sites, where blocking rates are in excess of 50%.

But blocking is happening on other online sites, too, including entertainment, fashion and lifestyle sites – albeit at about half the degree as on gaming sites.

[Tellingly, ad blocking is happening on technology sites, too, where about a quarter of the ads are being blocked.]

One of the more interesting nuggets of information reported by PageFair is the difference in ad blocking rates by country.  What we see is that Americans lag well-behind a number of other countries:

  • Argentina: ~34 of online ads are blocked
  • Poland: ~34% are blocked
  • Sweden: ~33%
  • Finland: ~32%
  • Germany: ~30%
  • United States: ~15%

Germany, in particular, has been the scene of several fervent legal skirmishes in recent years.  There, the publisher of the news magazine Die Zeit sued the parent company of AdBlock, claiming that the ad blocking tool is “illegal and anti-competitive.”  (The suit went nowhere, incidentally.)

Some observers speculate that the higher incidence of ad blocking in certain countries may be tied to those nations’ sociological profiles.  “I personally suspect that in some of these countries, citizens are more concerned about their personal privacy – perhaps for historical reasons,” Sean Blanchfield, PageFair’s CEO, has remarked.

One might wonder if, in the age of Edward Snowden and the Patriot Act (now superseded by new legislation ironically called the “USA Freedom Act”), Americans’ ad blocking practices might now be poised to align more closely with Europeans’.

I imagine we’ll know more about that degree of convergence within a year or two.

The fine art of negotiation: It never goes out of style.

Harvey Mackay
Harvey Mackay

Many people in business know about Harvey Mackay.  The chairman of Twin Cities-based MackayMitchell Envelope Company became famous as the author of the book Swim with the Sharks Without Being Eaten Alive, and six subsequent business best-sellers.

In the years following the release of his first book, Mackay became something of a business guru in the same mold as General Electric retired chairman and CEO Jack Welch.

The advice of these two men, borne out of their experiences in the corporate world, was a refreshing change of pace from the pronouncements of other authors who speak from their perches in academia.

In recent times, the thoughts and ideas of “sages” like Mackay and Welch might seem to some a little old-school – even quaint.  But I don’t think that’s the case.

Take Mackay’s thoughts on the art of negotiation.  The other day, I came across some points on that topic that Mackay first put forward about 20 years ago.  Reading through his points now, the advice seems as valid today as it was back then.

As for particular “do’s” and “don’ts” of the art of negotiating, here are a few points that Mr. Mackay makes:

  • Never accept any proposal immediately – no matter how good it sounds. 
  • Don’t negotiate with yourself – don’t raise a bid or lower an offer without first getting a response from your original position.       Otherwise, you’ll give the other side information and ammunition they might never have found out themselves. 
  • Don’t negotiate a deal with a person who has to get someone else’s approval. Effectively, it means that they can take any deal you’re willing to make and then renegotiate it. Why give them two chances to your one? 
  • Nothing is ever truly non-negotiable, no matter what someone might have you think at the outset. 
  • If you can’t say ‘yes’ … say ‘no’ and step away. (‘No’ can be just as good an end-result as ‘yes’.)

negotiatingAs for the dynamics of effective negotiating, Mackay’s pointers are equally valid:

  • Instinct is no match for preparation: Rehearse your positioning and pre-anticipate the other side’s response. (Even try role-playing.) 
  • Be respectful and courteous when negotiating. If you don’t think you can do that, have someone else negotiate your side of the deal instead.

As a final note, Mackay makes the point that “a deal can always be made when both parties see their own benefit in making it.”

It’s a positive parting thought – and it’s even better because it’s true.

CPR for Marketers? Marketing principles expand well beyond the 4 Ps.

4PsIn the world of business, we do like our checklists and bullet points.

It’s part of an impulse to distill ideas and principles down to their essence … and to promote efficiency in whatever we do.

It’s no different in the MarComm discipline.  Nearly everyone knows about the “4 Ps” of marketing: Product, Place, Price and Promotion.  The principle has been with us for nearly a century.

5CsThese days, however, the 4Ps of marketing seem inadequate. Stepping in to fill the void are additional attributes and angles that have been put out there by marketing specialists.

Several of these newer paradigms — one coined by Robert Lauterborn, a professor of advertising at the University of North Carolina, and another from technology marketing specialist Paul Dunay — consist of a group of marketing “Cs” ranging from five to seven in number: Consumer, Cost, Convenience, Content, Connection, Communication and Conversion.

Űber-marketing specialist Jennifer Howard has taken a different approach; she’s added to the original “4 Ps” by tacking on five new “Ps” covering the sphere of digital marketing.

Those new digital marketing attributes are Pulse, Pace, Precision, Performance and Participation.  They go a long way toward filling in the yawning gaps in the original list of attributes.

Beyond the notion that anyone who can manage to come up with five additional attributes that begin with the letter “P” deserves a medal of sorts, Howard’s new terms happen to be worthwhile additions that help bring the principles into the interactive era:

  • Pulse – active listening and attention to customer, brand and competitor insights.
  • Pace – the speed at which marketing campaigns are carried out.
  • Precision – assuring that marketing messages are delivered correctly.
  • Participation – creating conversations with customers that enable them to “join the conversation.”
  • Performance – meeting expectations for results via measurable and accountable MarComm tactics.

If you’re thinking now that we can’t go much further than the “Ps” or “Cs” of marketing … not so fast!

In fact, we now have yet another set of marketing attributes being brought to the table – this time by database marketing specialist Nick Necsulescu.

4 RsNecsulescu focuses his approach on customer segmentation – namely, interpreting data and converting insights into customer-centric solutions.  Recently, he’s been talking up the “4 Rs” of Marketing at various marketing trade events.  For the record, the “4 Rs” of are these:

  • Right Customer
  • Right Message
  • Right Channel
  • Right Time

More broadly, Necsulescu sees the “4 Rs” as “personalization redefined.”  He contends, “Of all the potential, new-age replacements for the four Ps of marketing, this set of ‘rights,’ in my opinion, is the most accurate.”

Necsulescu is particularly keen on three major customer expectations:

  • Customers expect instant gratification
  • Customers want to feel empowered
  • Customers are interested in self-service

In order to meet these new kinds of expectations, Necsulescu figures that marketers need to learn as many insights as possible on individual needs – the kind of information that determines what type of an offer should be presented and the message surrounding that offer. Also, to make sure the timing of the offer is well-targeted and that the offer is being presented through the most preferred channel.

That’s where robust CRM systems and databases come into play, with true 1-to-1 marketing tactics employed.  The challenge is daunting … but in Necsulescu’s view, he doesn’t think companies have much choice in the matter.

So there we have it:  We’re now dealing with Marketing Cs, Ps and Rs.  A veritable alphabet soup of attributes — and all the implementation challenges that come along for the ride.

We may need a little CPR for marketing professionals, too!

Companies behaving (not quite so) badly: Financial services firms continue their slow reputation recovery.

Financial services industryBack in 2009, no industry in the United States took such reputation beating as the financial services segment.  And to find out how much, we needn’t look any further than Harris survey research.

The Harris Poll Reputation Quotient study of American consumers is conducted annually.  The most recent one, which was carried out during the 4th Quarter of 2014, encompassed more than 27,000 people who responded to online polling by Harris.

In the survey, companies are rated on their reputation across 20 different attributes that fall within the following six broad categories:

  • Products and services
  • Financial performance
  • Emotional appeal
  • Social responsibility
  • Workplace environment
  • Vision and leadership

Taken together, the ratings of each company result in calculating an overall reputation score, which the Harris researchers also aggregate to broader industry categories.

Most everyone will recall that in 2009, the U.S. was deep in a recession that had been brought about, at least in part, by problems in the real estate and financial services industry segments.

This was reflected in the sorry performance of financial services firms included in the Harris polling that year.

Back then, only 11% of the survey respondents felt that the financial services industry had a positive reputation.

So it’s safe to conclude that there was no place to go but “up” after that.  And where are we now?  The latest survey does show that the industry has rebounded.

In fact, now more than three times the percentage of people feel that the financial services industry has a positive reputation (35% today vs. 15% then).

But that’s still significantly below other industry segments in the Harris analysis, as we can see plainly here:

  • Technology: ~77% of respondents give positive reputation ratings
  • Consumer products: ~60% give positive reputation ratings
  • Manufacturing: ~54%
  • Telecom: ~53%
  • Automotive: ~46%
  • Energy: ~45%
  • Financial services: ~35%

So … it continues to be a slow slog back to respectability for firms in the financial services field.

Incidentally, within the financial services category, insurance companies tend to score better than commercial banks and investment companies when comparing the results of individual companies in the field.

USAA, Progressive, State Farm and Allstate all score above 70%, whereas Wells Fargo, JP Morgan Chase, Citigroup, BofA and Goldman Sachs all score in the 60% percentile range or below.

Wendy Salomon, vice president of reputation management and public affairs for the Harris Poll, contends that financial services firms could be doing more to improve their reputations more quickly.  Here’s what she’s noted:

“Most financial companies have done a dismal job in recent years of connecting with customers and with the general public on what matters to them.  Yet there’s no reason Americans can’t feel as positively toward financial services firms as they do towards companies they hold in high esteem, such as Amazon or Samsung, which have excellent reputations because they consistently deliver what the general public cares about …  

[Individual] financial firms have a clear choice now:  Prioritize building their reputations and telling their stories, or let others continue to fill that void and remain lumped together with the rest of the industry.”

Here’s another bit of positive news for companies in the financial services field:  They’re no longer stuck in the basement when it comes to reputation.

That honor now goes to two sectors that are Exhibits A and B in the “corporate rogues’ gallery”:  tobacco companies and government.

Both of these choice sectors come in with positive reputation scores hovering around 10%.

I suspect that those two sectors are probably doomed to bounce along the bottom of the scale pretty much forever.

With tobacco, it’s because the product line is no noxious.

And with government?  Well … with the bureaucratic dynamics (stasis?) involved, does anyone actually believe that government can ever instill confidence and faith on the part of consumers?  Even governments’ own employees know better.

Promo emails: What’s the right length … What’s too long?

email lengthI’m sure all of us receive some promotional e-mails with content that just seems to go on forever.

There’s no way that’s accomplishing the company’s marketing and sales goals.

But just what exactly is the right length of content in a promotional e-mail communiqué?

Assuming that “the wisdom of crowds” can get us pretty close to whatever that sweet spot is, looking at findings helpfully collected and aggregated by research firm and direct mail archive Who’s Mailing What! provide some pretty good clues.

WMW! tracks nearly 225 business categories, looking at the word count of e-mail messages deployed by companies active within each of them.

The average e-mail length for nearly all of the categories that WMW! tracks is substantially below 300 words.

[To compare, that’s shorter than the length of this blog post, which is around 300 words.]

And there are very few exceptions – fewer than ten, according to WMW.  In those seven categories, customers and prospects are used to encountering more verbiage in order to remain interested in the message.

The few business categories with the highest average content length (350 or more words on average) turn out to be the following:

  • Business/financial magazines
  • Newsletters
  • Political fundraising
  • Religious magazines
  • Seminars and conferences
  • Social action fundraising
  • Special interest magazines

Incidentally, the two categories with the absolutely highest number of words are social action fundraising (nearly 650 words) and seminars/conferences (around 620 words).

… Which for those two categories makes complete sense.  Donor prospects are going to need to read a good deal about a cause before opening their pocketbooks.  And people are going to need details about a seminar’s content and quality before agreeing to pay the typically high fees charged to attend.

But for everyone else, short e-mail promos are clearly the name of the game.  If word counts go much above 200, it’s probably getting a tad too long.