Chris Paradysz

Back-to-School Retail: Anxious Moments

The NPD Group says that teen spending is up 6-8% over last year.  And, they’re buying what’s typical: fashion, lifestyle, electronics.  I want to believe it, but I still don’t like what I’m seeing, reading and hearing about Back-to-School and the Fall 2010 retail season.  Although the Discount/Variety store sector continues to have busy stores and monthly positive trends, there is much hand-wringing in the specialty and department stores.

The BTS period is highly compressed but is a harbinger for the Fall and Holiday seasons.  With 09 comps so challenged as a benchmark but most having improved performance in 1st and 2nd quarters this year, many retailers bought product aggressively.  And, of course, orders have already been placed for the balance of the year.  Not surprisingly, we’re seeing pre-season promotions well before prior years.  Check out the Washington Post article about Target, Toys R Us and Sears “Black Friday” sales.

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Oil Spill Disaster: What It Could Mean for Ecommerce

Disclaimer: I’m not a meteorologist or have any expertise in oil spills or environmental disasters.  But, I can read.  Because the story is still evolving, the truth is clear.  Video doesn’t lie.  Even BP admits to pretty much what the environmentalists say.

Every day, the impact hits me a little bit harder, but it’s cumulative.  It seeps into my daily business thoughts.  I’ve been calling this an economic disaster since the day it happened.  Ground Zero:  April 20, 2010.

Estimated Oil Spill as of 4/22/10

An acquaintance and client, Jerry White from the Landmine Survivor Network (now Survivor Network), calls landmines ‘weapons of mass destruction, one at a time’.  The BP calamity falls into the same category.  Most Americans can’t see it, touch it, watch it, or even imagine it.  Less than 10% of the population has direct access but 100% of us are going to feel it.  It will reverberate and seep into the economy in an insidious way starting with Wall Street and, then, onto Main Street.

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Facebook’s Open Graph: Pros, Cons and the Future

PM Digital bloggers weigh-in on Facebook’s Open Graph.

Marketing Opportunities vs. Privacy

Suzy Sandberg:  When I first heard the details of Open Graph, I immediately went into Facebook to turn the feature off.  Facebook went with a pre-checked box to enable the Open Graph feature which requires unchecking to opt out.   We’ve seen this before — a Facebook platform change with privacy implications where the user must seek out and select new privacy settings in the application to undo a new feature.

Open Graph is getting buzz for two reasons:  one is its ability to socialize the internet in a new, unique way.  The other is the emergence of new privacy concerns, of which Facebook has already had its share of in the past.  Are the benefits of Open Graph really worth the positive buzz?  And/or how much of the privacy concerns are just noise?

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Creative Must Play a Critical Role in Marketing Strategy

The iPad.  Google this, Google that.  Yahoo/Bing.  Rue La La.

Finally, amid the fierce competition in direct marketing, those who create and tell the stories — the imaginative creative voices — are gaining back their seat at the solution table.  And, they should.  Media, marketing, technology.  None of it will spark interest if consumers are not first engaged, then captivated.  It’s the work of the designers, the writers, the artists, that capture that moment.

Strategy and creative are twins and need to live side-by-side, breathing life into ideas. With communication as complicated as it is today, the message must be seamless and integrated.  That can’t happen without intimacy, and intimacy happens best when there is a shared sense of purpose and priority.

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What the iPad Means for Marketers

Now that we’ve have had a week to put the new iPad through its paces, we asked our PM Digital bloggers for their thoughts on the device with an eye to its potential for marketers.  Below are some of their initial impressions and takeaways.


OS4 Will Make the iPad Truly “Magical and Revolutionary”

Chris Paradysz:  OS4 will have multi-tasking capabilities.  Now, I love the iPad.  I can be excited about any great technology, but it should fulfill the hope I had back when I blogged about it earlier in the year that it will create an intimacy bond between content and users.

Music, video, words, pictures should no longer be disconnected from touch and feel.  The iPod and iPhone didn’t transform this connection with people (consumers).  With the portability, size and weight of the iPad well-suited to most people’s hands and laps, it can easily move from one position to another and from one person to another.

From a marketing pov, this creates a new experience sensation and viral ability that prior e-readers have failed to deliver.  Within an app or the internet, an advertiser can deliver a rich brand or offer experience, not just ink on “paper”.   With the iAd and technology infrastructure to support it, I have two questions:  1) how soon will it be before Apple starts up an advertising agency; 2) will a new SNL Apple skit be on this Saturday night?


A Must-Have Device You Didn’t Know You Needed

Suzy Sandberg: Just to get this out of the way, YES, the iPad does look like a giant iPod Touch. (iPad owners, I feel your pain on this relentless comment).  And since I can’t strap the iPad to my arm when I go running, I do still need my iPod Touch. And I still need my laptop since the iPad has limitations (no USB for one). I also have/need a cell phone until/unless Verizon ever actually does get the iPhone.

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How Do You Take Your Growth: Super-Caffeinated or Regular?

In Digital and across channels, 2010 has brought with it something we haven’t seen since 2007: investment growth.  Businesses are investing in building their customer base and growing top-line. The range is from cautious (3%-5%) to modest (5%-7.5%) with a few on the aggressive edge (+10%), but there is no more positive a sign than businesses putting cash back into their future.

Whether it’s the realization that expense cutting won’t grow profits, or investor pressure — private equity, venture capital or otherwise – for valuation and distributable cash increases, it’s all good for marketing.  Depending on which group you’re listening to, private equity and venture capital investing is back in vogue and 4Q 2009 trends showed more deals than in the prior nine months.  And, early stage venture capital is, again, finding its way into web 2.0 and 3.0 technologies which are early bellweather indications for the durability and sustainability of the investments.

Based on last month’s eTail show, Shop.org, this week’s SES conference and a recent technology summit I slipped into while staying in a NYC hotel, the number of exhibit hall booths from new companies is surging.  Most won’t survive, but they’re pushing the status quo even at Google where new offerings are accelerating at an astonishing rate.  Do check out the beta of Google’s new Search Funnels that allows advertisers to see through brand-assist keywords’ connection to trademark terms.

Although not an exhibitor anywhere, a new fave and current fascination is Polyvore, a voyeur’s fashion website birthed in 2007 with Matrix Partners, Benchmark Capital and Harrison Metal venture capital.  While The New Yorker calls it “The world of virtual Anna Wintours”, I prefer Polyvore’s VP of product management’s description: “Our mission is to democratize fashion. To empower people on the street to think about their sense of style and share it with the world.”  It’s passion, in a category that’s anything but casual, a user-generated content engine, on a social media platform, with easy-to-use tools where users can buy what they create (or, a look someone else designed), right now.

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Instant Ads: Targeting Perfection in Real-Time

A few years back, I was experimenting with songwriting and free-form poetry.  Creatively, traditional boundaries were killing the sound my head wanted to hear.  I wrote, “Eyelids blink, but what truth reveals?  That squinch of time between a blink and a-h-aa.  Revelation.” 

Today, with a digital marketing industry that’s grabbing new and existing ad dollars, these words carry a truth that could solve the dominant online advertising challenge, that is how to bring the economics of targeting precision to display media.  With the SEM and SEO industries maturing and their ability to grow sales naturally constrained by the limitation of consumer demand, this could be the old-guard display advertising’s missing ingredient.  

Led by Google, Yahoo and Bing on their respective exchange platforms, advertisers can pinpoint consumer interest as it’s happening.  Instantly, literally, ads are served based on what was just learned about what someone was looking for and doing.  And you can know how many ads they’ve already seen and when. 

Imagine you’re the Martin Guitar Company trying to reach people looking to buy a guitar that’s perfect for Eric Clapton’s style of acoustic blues.  If you could be in front of a prospect at the precise moment they left a Guitar Player Magazine article about Eric Clapton’s 1992 “Unplugged” album and his use of 3 Martin guitars1 and who, 10 minutes earlier had already clicked on The Guitar Center and looked at acoustic guitars, you’d pay a premium for that.  It’s like being part of a Facebook exchange as people are buzzing about exactly what you’re selling and you can show and tell it, right at that moment. 

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Social Media: The Boisterous, New Triple Play

Until now, cable companies held a lock on “triple play” as a marketing phrase to indicate a consumer’s package of digital services, including phone, traditional cable and Internet access. Alas, social media has emerged as a (welcome) new threat to multi-channel marketing’s status quo and should be allowed to grab the “triple play” title (after all, cable has added a 4th play anyway — high-definition — with speculation of a 5th play in 3-D still to come).

Take the Lupus Research Institute’s Shady Ladies gala last Saturday night in Wellington, Florida.  The goal was to stir awareness for a deadly disease that mostly affects young women.  The evening event included dinner and good fun but, also, had silent and live auctions for celebrity sunglasses (Bruce Springsteen and Patti Scalfia, the Kardashians, Tom Bergeron of Dancing with the Stars fame, Beyonce etc.), as well as a few fashion pieces.

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The Apple Tablet: Don’t Ignore the Hype

What Apple’s latest announcement means to marketers.

Tomorrow is a huge day in our lives as marketers.  I’m taking a not-so-wild shot at this not because I love Apple products (I don’t) but because their ability to transform entire industries by re-thinking how people want to live their lives is stunning.  Apple’s new tablet product will be launched and, with it, the typical hype and expectations are at a fever pitch.  And, they should be.  Although the Kindle from Amazon was a game-changer for the content industry, it hasn’t really changed the lives of marketers as Apple’s launch will.

The new Apple product will be far more than a device.  It will integrate multiple forms of content into a single destination and do what all of us have wished for since we started buying cellphones and computers for personal use. Voice, music, video, print, data, calendars and phone are all going to be experienced through this technology.

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The Outlook for 2010

The facts, the stats, and the true in-the-trenches business experiences from 2009 now tell us a lot about what to expect for 2010.  Below is a quick review of some of the key things online marketers should look for in the coming year.

A Slow Recovery

There will be continued slow recovery in US consumer spending, especially for large purchases due to a lack of discretionary cash (not income, per se), increased savings rates and a general adjustment to this new “now”.  2008 changed buying behavior to a “no”-first shopping mindset and 2009 cemented a value-only, thrifty approach.  2010 won’t change this.  Unemployment, under-employment and slow-growth for the private sector are the engines that are choking back substantive improvements in consumer confidence.  While there are certain job sectors re-igniting hiring, most industries will only begin to replace the attrition they forced during the lean 2008 and 2009.

Pent-Up Demand from the Jet-Set

For the super-wealthy demographic, expect that luxury items will be back in vogue as pent-up demand for jewelry, cars, homes, boats, fashion, at today’s reduced costs, increases.  Unfortunately, this is unlikely to offset the dramatic fall-off seen from the much larger affluent group that accounted for much of the demand growth during the run-up to the recession.

Personal Fulfillment for the Rest of Us

The definition of discretionary has changed relative to consumer purchases and buying behavior.  Where, pre-recession, this meant items people didn’t need but wanted, the recession and its epic duration have people focused on their hobbies and passions to relieve stress and to add back pleasure in their lives.  No longer considered discretionary, these hobbies and their related items and services have become part of the indispensable.  I anticipate revenues from home improvement, home-based interests like gardening and exercise, and passion hobbies like crafts, music, fishing, etc. stay in vogue and continue to capture wallet share.

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