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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Are Marketers Serious About Ceding Control to Consumers?
by Max Kalehoff, Friday, October 13, 2006, 12:00 PM

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At least week's Masters of Marketing, the Association of National Advertisers' annual conference, P&G chief A.G. Lafley, in his keynote address, pronounced that it's time to "let go" and cede control to consumers. Lafley underscored how marketers must move beyond transactions and to more meaningful relationships. Marketers must achieve the right balance of being in touch and in control. He described an important paradox: the more we are in control, the more out of touch we are. The more we give up control, the more we become in touch. So let go.

Lafley's statements were sometimes trivial, but they were a huge deal for this audience of over 1,000, including the largest gathering of CMOs I've ever witnessed. His theme echoed boldly in every CMO presentation, from companies like HP, Sony, Wal-Mart, Charles Schwab, Mastercard and Yahoo among others.

Now, a reality check. Are big advertisers ready to cede control to consumers? Instinctively, they know they have no choice. However, I'm not sure how prepared they are to start tackling key obstacles. Surprisingly, one of the most powerful metaphors of consumer control, the "Web 2.0" movement, spurred blank stares among most senior attendees at the ANA conference. When Cammie Dunaway, CMO of Yahoo, during her keynote, asked the audience if they knew what Web 2.0 was, I estimate that less than 50 hands went up (or five percent).

So what are the barriers to embracing consumer empowerment? It's one thing to pay lip service to consumer control at swanky industry gatherings, but it's another to take real action to transform your culture into one that lives by it. The embracement of consumer empowerment as an opportunity to connect must move into the trenches of the company, where consumer experiences and touch points are created and managed.

Aside from getting the CEO on board, institutional silos--often discombobulated and mired in legacy--are perhaps the most important forces that will prohibit marketers from adapting. Big companies today have more silos than we can count, but here are the three most important ones we should pay attention to:


Legal Silos Sure, legal is justifiably empowered to protect a company and its assets, but good intentions and misinformed execution often conflict with the spirit of consumer empowerment. When consumers express themselves or create media involving licensed brands and copyrights, they often enter into harshly protected legal territory. It is common for corporate legal departments to "rectify" situations where consumers have embraced and altered brands, and made their expressions public, both passively and overtly. (See my recent piece on incremental, incidental consumer-generated product placement.) By default, legal becomes an extension of the marketing department. In some cases this makes sense, in others, not. Considering the proliferation of co-creation in venues like photo-sharing and social video, where do you draw the line? What if the people mutating your protected brand also happen to be your biggest fans?


Advertising Silos After legal, the advertising department should be evaluated. The fact is that so much of the money at big brands still goes to paid media venues, like television, radio and print. These traditional tactics surely shouldn't go away, but their legacies of power should. Paid media used to drive the whole marketing strategy, but the very notion of interruptive attention goes against the grain of consumer empowerment. Perhaps at the next ANA conference, we will see fewer presentations and "successful case studies" rooted in 30-second spots!


Customer Service Silos Finally, customer service and listening becomes one of the most important organizational attributes in a world of consumer empowerment. Not a customer-service silo that is labeled a cost center, or one that is rewarded by rapid turnover of inbound calls, but one that embraces the entire enterprise and considers itself to be the ultimate consumer champion, as well as a metaphorical welcome mat for customers.

As my colleague Pete Blackshaw, a former P&G exec, notes, customer service becomes a powerful media department when consumers chronicle their experiences with your brand. But we can't even begin to figure out how to market to these newly empowered consumers until we have mechanisms in place to systematically listen to them. Perhaps the customer service department needs to be eliminated, and every employee receive the title "customer service officer"? No brand in an age of consumer empowerment will be successful if its managers believe customer service can be diluted to a silo.

What do you think are the key obstacles organizations must tackle to truly embrace the reality of consumer control?

13 comments on "Are Marketers Serious About Ceding Control to Consumers?"

  1. Charles Frith from BBDO
    commented on: October 18, 2006 at 12:54 AM
    I'm genuinely surprised that Internet 2.0 went over a lot of heads. Wish I was there to see that.

  2. Walter Rinebold from ShopNTown.com, Inc.
    commented on: October 17, 2006 at 1:21 PM
    From the time I was introducing small to medium size groups of average people to the Internet in 1997, three times a week for a year, most of the audience wanted to know "how is the Internet going to affect local business?"

    We knew they were in trouble!

    Our Solution?

    Consumer generated content in a select community, anywhere in the US, was the only way to empower local enterprize with up to date content.

    Now our web site http://www.ShopNTown.com/SNTport.php is almost complete and I will be happy to announce the results after launch.

    Point is, the only reason self empowerment hasn't been allowed before is they didn't want to give up control.

    But think about this, isn't one of the reasons most people go into business is control . . .

    Thank you for listening, Walter Rinebold

  3. RC Buccieri from DSIC
    commented on: October 16, 2006 at 3:00 PM
    Why is this new? In the 1950's Piels Beer had an ad campaign (remember those) to support their brand starring Bert & Harry, two cartoon characters. The campaign was hugely successful, perhaps among the first to achieve cult status in teh communications business. But Piels sales plummeted because the more people who tried the product, the more discovered that Piels tasted AWFUL!! Now, when we speak of Web 2.0 and consumer engagement and brand interactivity, we speak as if using consumer information and reacting to consume rperceptions is wholly new. No, what is new is the ability to generate hype around a repackaged, old idea. "Back in the day" all marketers did was respond to consumer input. Then we started measuring it, qualifying it, disseminating and organizing it.

    Now we have discovered we no longer understand consumer input, so we need to re-engineer it.

    What a great country! What a great industry! Of course, I no longer know what this industry is; marketing, engagement, interactivisness?

  4. Mike McGrath from RealXstream PTY LTD
    commented on: October 13, 2006 at 5:06 PM
    Do marketers actually "HAVE TO" let go all together? RIght now we have a huge chasm between production content and UGC and if this gap remains then marketers can either hold on tight to control (through traditional media) or let go altogether (THrough UGC). I think new opportunites are going to exist inbetween these to extremties, and that this is where the real opportunites to create brand magic will exist and trhive.

  5. Marc Bodner from Seven-Zero-Eight-Five
    commented on: October 13, 2006 at 2:38 PM
    Profit, real estate, ego.

  6. Drew Neisser from Renegade Marketing
    commented on: October 13, 2006 at 2:02 PM
    The objective of all marketing is to cut through. If everyone zigs, the smart marketer zags. Today's zig is UGC. Perhaps the zag is not ceding control, not pretending to put the consumer in the driver seat. Perhaps the zag is offering a vision that the consumer admires, a product that the consumer finds irresistable, a level of service that is beyond a consumers wildest dreams. Marketing is an opportunity to lead, ceding control is just another way to follow the gospel de jour. I'd rather zag.

  7. melissa weiner from stray dog media
    commented on: October 13, 2006 at 2:00 PM
    Max, I'd like to send you a book on the subject of leadership now being driven by consumers. Are you at the 1140 Broadway address? Thanks, Melissa straydogmedia8@aol.com

  8. Nigel Hollis from Millward Brown
    commented on: October 13, 2006 at 1:37 PM
    Max, thanks for another interesting POV. If anything I think you are not digging far enough to get at the root of the issue. Most companies do not have a shared understanding of the roles that different touch points play to a) create desire to use a brand or service, b) help people buy it, c) help them enjoy the experience. That's why we end up with the silos you suggest. The person charged with building initial interest is not the same person charged with fulfilling it, they don't understand each others contribution and they are not encouraged to talk. As to A.G. Lafley's comment about moving beyond transactions to more meaningful relationships, am I the only person to believe that's what marketing has always been meant to do? Lastly, you might want to check out my thoughts on Consumer 2.0 at www.mb-blog.com, yes, the Luddite is back.

  9. charles mccullagh from magazine publishers of america
    commented on: October 13, 2006 at 1:29 PM
    Thanks. In the magazine busines the legacy issues involving church & state and the very entrenched silos of editorial, advertising and circulation make it a particular challenge for publishers to cede control to consumers. Most people I know in the business are fully on board the Web 2.0 wagon. But the greatest challenge, as you note, is organizational. B-to-B magazines, driven by the changing business environment, have been quite nimble in this regard. We can learn from them.

  10. Zenophon Abraham from Sports Business Simulations
    commented on: October 13, 2006 at 1:25 PM
    I'm going to take a different angle. I think many of the responses I've seen both here and in other areas reflect a part of American Culture that's almost totally out of touch with the very media developments in its face. Advertisers and marketers representing "big brands" are so smug and comfortable in their titles and trappings that they don't work to establish experiements and relationships with new media and the people in it.

    If they did, many would have a presence here in the San Francisco Bay Area. This is home to overn 80 percent of the firms advancing digital media and Internet-related actvities. I'll bet few of your readers know what vlogging is or have done it, yet it's the one activity at the core of the consumer-generated content issues faced today.

    Out here, people with firms like Stubhub.com (online ticketing) regularly get together with people from Google at a San Francisco bar to just talk and understand the needs of each other.

    That's the kind of interaction representatives in advertising and marketing need to establish. I personally know one ad consultant out here in San Francisco who has yet to actually ask me about vlogging, the intenet and web trafffic dynamics, or what were doing or the industry in general. And this guy sees me at Cal games, and just out and about. Totally lost, he is.

    But blissful, too.

    That''s the problem. In fact, your blog post is representative of the problem "Are Marketers Serious About Ceding Control to Consumers?" implies that marketers have control -- I've got news, they don't.

    It's not practical to have lawyers chase after every person that happens to use a brand's image in their vlog in a way that the company doens't like. That's prohibitively expensive. The tide of content development using video is so large that it is smashing over every part of our society.

    That's the point: this is not a fad, it's a social revolution.

    Marketers will be dragged along in this wave, kicking and screaming bloddy murder unless they adapt. And fast.

    There's no excuse for only five percent of the ANA audience knowing what "Web 2.0" is. It's a reflection of how behind the social learning curve they are -- time to catch up.

  11. Dan Scott from Scott Kay
    commented on: October 13, 2006 at 1:04 PM
    Excellent summation of the ANA event - it's like I didn't have to attend, and in some ways wish I didn't.

  12. Christopher Conlan from Kaboodle Ventures
    commented on: October 13, 2006 at 12:54 PM
    Max - great article. One more "silo" I'd throw into the mix "product development". As customer service becomes increasingly probably the most important leg on the scaffold, product developers need to place more consideration on the two root factors which result in good or bad customer experiences:

    (1) Product Development - especially true in the tech sector -- does it work? Is it easy to use? Are we educating the consumer on how to maximize the value of their purchase?

    (2) Price - does the customer feel like they received a fair value, or hopefully, got more than they paid for "at the end of the day". Can the company stay in business providing a superior level of customer service. (See 1 above -- if it doesn't work in the first place, your customer service costs will be higher).

    The final consideration in this mix are the people who are actually providing the customer service. I saw a recent survey regarding what's important to employees -- and feeling good about what they do is important. If the product works, the price is right and both the customer and the service person feel good about the transactions, the company is going to have a winner, and the marketing will take care of itself.

    Christopher Conlan

  13. Larry Czerwonka from buzztone
    commented on: October 13, 2006 at 12:52 PM
    they need to feel "safe and secure" doing something like this: http://www.matisyahuworld.com where 80% of the content comes from the artist's fans and not from the record label or the artist. They also must interact with the consumer like this artist is doing.

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MAX KALEHOFF
  • Max Kalehoff is vice president of marketing for Clickable, a search-marketing solution for small and mid-size businesses. He also writes AttentionMax.com


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