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Buying audiences: Yahoo’s purchase of Tumblr

Yahoo is buying Tumblr for $1.1 billion. A few months ago, Facebook bought Instagram for roughly the same amount. What do both companies have in common? They have no revenue. But they also share another defining characteristic: They each have an audience.

Back in 2008, when Comcast bought DailyCandy for $125 million, folks were bewildered. What did a cable giant want from a company that sent out emails about fashion and shopping every day? Easy: They wanted their audience.

Then came AOL’s purchase of Huffington Post in 2011. What did they want with all of those blogs? Well, you get the idea.

Following that logic, it’s not difficult to figure out why a company like Yahoo would want to snap up Tumblr. The acquisition gives them a strong and engaged audience of users in a very coveted demographic—young people. All of these things are key in the Marissa Meyer era. But this also serves as a reminder for marketers in general:

Marketing is useless if no one is there to consume it. You need an audience.

You can launch as many “social media campaigns” as you want. But if there’s no one there to engage with them, you might as well save your advertising dollars.

Seems like an obvious lesson, right?

But it’s not. After having spent a great deal of time working at ad agencies, I’ve seen first hand how some brands are still missing the point about building an audience. They say stuff like, “We don’t have the resources for full-time community management.” Start-ups in early stages get stuck in this mindset, too, thinking audience-building isn’t crucial to success. That it’s distracting “fluff” they don’t need to worry about. Then one morning they wake up with a product and want to promote it. But guess what? There’s no audience to consume the content for the promotion.

Whether you’re just starting up, or you’ve been in the game a while, growing, listening, measuring, and monetizing what your audience has to say is crucial to your success. And, if you’re a start-up specializing in the production of content–Instagram, Tumblr–you don’t even have to be that great at the measuring or monetizing parts. Just grow your audience and wait for your Yahoo.

Congratulations to Tumblr.

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Give Marketing Meaning With Content

“Great marketers don’t make stuff. They make meaning.”

– Seth Godin

If great marketers make meaning, then it stands to reason that a marketer’s best friend is context. After all, context sets the stage so that meaning exists at all. It provides the setting in which a brand or product lives. If a marketer doesn’t set the stage properly, the product has to work extra hard to show a customer why it’s indispensable in their lives.

So how do marketers provide ‘context’?

By producing content that does three things:

1. Tells a story.

Where the brand comes from, what problem it solves.

2. Conveys relevant info.

The kind that’s useful and targeted
 to the right audience.

3. Builds trust.
Makes the customer feel like they “know” the brand.

Why’s content so important?

Nowadays, customers find you via content on the web. So out of all the information out there, your content must stand out. It must feel like it can only come from you. But this doesn’t mean just having great copy on your website (although that’s a piece of the puzzle). It means you need to carry your message consistently and persuasively across multiple touch points and content repositories: your blog, your Twitter feed, email communications and even your dashboard or app.

Recently, Ben Chestnut, CEO of MailChimp, gave us an inside look at how his team produced an email for the launch of the company’s SMS app, Gather. If you’ve ever wanted a real-world example of how to provide context via your content, this is an awesome one. Let’s take a cue from Ben’s post and explore the relationship between context and content using the three points mentioned above.

Content provides context—and thus, meaning—when it does the following:

1 – Tells a story


What do stories have to do with context?

A story puts your brand or product into context immediately by revealing to the prospective customer its origin and/or specific application. The more realistic and relatable this is, the better.

While your overarching brand story will be fairly fixed, your product story should be more organic. This is largely where your content will come from and it’ll require regular tweaking because your customers’ needs will change. But it’s really simple: Listen to your customers. See how they use your product. Then write things about your product that you think will help them address their on-going challenges.

Storytelling doesn’t need to be an involved process. For example, in Ben Chestnut’s piece, he tells a story in roughly three sentences. It gives us all we need to know about Gather:

“Once upon a time, MailChimp’s CEO got lost on the way to an event and had no way of contacting the event organizers for help. He didn’t have their phone numbers, and it was too late to send them an email. His frustration led to the idea for Gather…”

Beautiful. Done. Onward.

2- Conveys relevant info


So you’ve got your brand or product story. What’s next?

In Ben’s post, he describes how he narrowed down the group of recipients for the announcement about Gather. He could’ve sent the email to a huge list of people, but he didn’t. Why? Because good content has to be useful. So it’s got to go to the right people, at the right time.

Remember: More is not always more.

3- Builds trust

Be yourself.

Content isn’t useful if people don’t trust what you’re saying. And the quickest way to undermine your customer’s trust is by spamming them with content that’s irrelevant or, just as bad, being inconsistent across channels. How you talk on your blog should be the same as how you talk in an email to customers. The copy on your interface should feel like it came from your brand. Little things do matter.

And the same goes for other aspects of content like design and UX, since they also contribute to providing all-important context for users. As Braden Kowitz, Partner at Google Ventures, aptly put it: Trust increases when we get the details right. If your brand is all about making people happy and providing a seamless interaction, then you’ve got to do more than just write great copy—you’ve got to create a great experience. When it all ties together, trust will grow.

The importance of meaning and context

I agree with Seth Godin: Good marketers don’t make stuff. They make meaning. And the best way to make meaning is by using content as a vehicle for your brand and product. But good content requires the kind of context that only storytelling, relevance and trust provide. It’s then—and only then—that your brand and product will cut through the clutter and connect with customers.

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How will you use your potential?

You’re walking down the street. The woman in front of you suddenly drops her bag, spilling its contents onto the sidewalk. You could ignore her and just keep walking. Or you could stop and help. If you do that, you could make her smile and say, “thanks.” This has the potential to make her day. Make her happy. Or you could just keep walking.

Humans are potential. We all have it. And not in the hokey, after-school special way. I mean in the big-picture, all-encompassing, soulful way. This potential is everywhere and nowhere.  You can choose to do something good with this potential or not. The beauty and the burden is that it’s your choice.

Of course, we all have varying degrees of potential. Some of us have potential as large as the universe and then there’s a few of us who have potential as small as an atom. Thankfully, our capacity (or lack thereof) isn’t static. It’s not fixed. Your potential today can be different than your potential tomorrow. It might increase if you help that woman collect her belongings on the sidewalk. It might not. The point is that we all have the power to decide where even the tiniest piece of potential goes.

How will use your potential? Or help others to use theirs?

 

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What do you want to do?

Watch this.

When I was graduating from college, I didn’t know what I wanted to do with my life. Sure, I’d done well in school. I loved learning. Ideas. And writing about them. Writing about them a lot. But I was plagued by the idea that the next decision I made about my future would dictate the rest of my days. That I was on some sort of track to a mysterious destination and if I made one false move, I’d destroy it all.

Then one day one of my favorite professors asked me about my plans after college. I explained to him that I’d been accepted into a couple of graduate programs and I was deciding between the two. He congratulated me, but was quick to ask, “But what do you want to do?” I answered frankly and said that I didn’t entirely know. Looking back, I realize Dr. Conrad was asking me the same question posed in the video above. I just didn’t know it at the time.

I went to grad school because it felt right. While I learned a great deal there—both in and out of the classroom—I went into it not knowing what I’d do afterwards. I didn’t know the answer to my professor’s question. It would take one bad job and a whole lot of self-reflection before I figured it out. Before I asked myself this:

What do you want to do?

When I asked this of myself in 2008, I realized the answer was one I probably knew for a long time but couldn’t quite articulate. I wanted to write. So I started The Cultivated Word. Almost five years later, I know that launching my own business was the best decision I could’ve ever made for myself. It not only gave me the chance to be an entrepreneur, but it connected me with other like-minded individuals for years to come, and has played a pivotal role in bringing me to where I am today.

And yet, I don’t think we answer this question just once in life. We answer it over and over again. And that’s ok. It’s not about getting it right one time. It’s about thinking enough to ask the question at all and having the guts to honor the answer. It’s about forgetting everyone else’s opinion of what you should do (or be) and take responsibility for the outcome of your decision—good or bad.

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4 Ways start-ups do it better (and how you can learn)

When it comes to building communities through social media and in real life, big and established brands can learn a lot from start-ups.

Here’s a list of four ways start-ups do it better and how you can learn from them.

1. They’re obsessed with authenticity.

Big brand stunts like Oreo’s Cookie vs. Creme and, further back, Old Spice are just that–stunts. I’m not saying they’re all bad, but they shouldn’t be a part of your short or long-term plans for community growth. No one likes a fair-weather friend, so don’t be the brand that pops up only to deliver good news or fun prizes. You may be giving something away, but it still shouts, “Look at me!” And that’s not authentic. It’s just needy.

2. They ‘get out of the building’.

How do you find out what people think of your product or idea? You ask them. By getting out of the building and heading to the “streets” (or wherever), you’ll get the kind of knowledge that has the potential to improve your product. This is part of a process called ‘customer development’.

Customer development is a fancy term for listening to your  (current or prospective) customers. Start-ups understand this and do it well because it’s crucial to the development of their product. They spend time talking to people. As a result, they’ve an inherent understanding of the long-term value of maintaining conversations–after all, it’s going to make or break the buying relationship.

Established and big brands can learn from this process. Granted, it will mean that they’ll need to re-tool how they currently shape their product. They’ll also need to take responsibility for doing these cust dev style interviews themselves, or find an agency willing to work not as a vendor, but as a partner in product development.

3. They turn users into brand evangelists.

When people love your product, a funny thing happens… they talk about it. When people have a bad experience with your product, they also talk about it–on your Facebook page, @reply you on Twitter, or on your company blog. The thing is, start-ups are great about understanding you can’t hide bad customer experiences. They get that you have to take the good with the bad and harness it to create a better, more transparent experience moving forward. This builds trust. Trust grants you access into people’s hearts and minds. So, take the good with the bad and use service and communication as a means to market your product.

4. They take risks.

It’s more important to build a highly engaged community of raving fans than it is to create a product, brand or service that is everything to everyone. Apple is always lauded for its market dominance, but there was a time when they were a start-up and no one cared what products they came out with. No talked-about press conferences, no long lines, and no stores (!).  For the most part, what propelled Apple to where it is today is due to the stubborn pursuit of customer delight. Start-ups get this. Mimic them.

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If you build it, they will come

“If you build it, they will come.”

Famous line from the epic Kevin Costner movie, “Field of Dreams.” Also a very valid statement when applied to brands looking for greater social media ROI.

You see, when you’re a marketer, nearly every day is spent discussing the Holy Trinity: Facebook, Twitter and Instagram. Everyone wants a new way of harnessing the power of social channels to raise awareness of their brand. Oh, and while we’re at it, how about a big idea for using these social media platforms in a revolutionary new way?

Making matters more complicated is that brands typically want this big idea only when they’ve got a major announcement to make. Thus, they’re often busting ass to build their audience at the same time they’re supposed to be sharing an important message. Needless to say, this is a bad spot to be in. The good news? It doesn’t have to be this way.

Established brands can reap long-term benefits from social media–and spend less time obsessing over stunts–if they start building their community of brand evangelists before they need to.

Straightforward, right?

You’d think–but I still come across well-known brands that don’t understand how important it is to start building their community before the next big media push. Often, they’ll say they don’t “have it in the budget” to maintain such a strong community year-round. Really, you don’t?

Whenever I hear this, I almost always think of the start-ups I’ve had the good fortune of working with over the years. Barely any of them had significant marketing dollars to work with, let alone a line item for a community manager in their operating budget. But at the end of the day, the founders of these start-ups are on Twitter and Facebook talking to customers, getting a read on customer sentiment, and integrating that feedback not only into the development of their product, but also into their marketing efforts going forward. (Just a few great examples: Elizabeth Yin from LaunchBit; Lance Walley from Chargify; Jesse Lamb from Dispatch; Des Traynor from Intercom; Todd Garland from BuySellAds.com; Hiten Shah from KISSmetrics). 

Building a strong community isn’t about budget–it’s about abandoning the notion that social media and conversations with customers is separate from marketing. Nowadays, that is marketing. And the faster brands realize that, the better off they’ll be.

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LinkedIn pulls a fast one–and it works

They like me–they really, really like me!

In a move straight out of the “Flattery Will Get You Everywhere” playbook, LinkedIn sent 20 million people emails last week that told them they were either in the top 1, 5, or 10% of most viewed profiles. As Casie Gillette pointed out, this got people everywhere sharing their “impressive” good news on Instagram, Twitter and Facebook. Myself included.

Taking a quick screen shot of the notification email from LinkedIn, I posted it to Instagram, sharing the news and joking that my life was now complete. I was a LinkedIn superstar! Only problem? I was playing right into LinkedIn’s plot to get folks like me talking about LinkedIn.

And this was an awesome idea.

Over the years, LinkedIn’s significance in the social media landscape has felt tenuous at best. Sure, you’ve got a profile on there, maybe even some recommendations from coworkers. But do you use it the way you use Facebook? Probably not. But in 2012, LinkedIn saw the addition of 50 million users and has lately made enhancements that make your profile–and the content on it–far more useful and contextualized than ever before. Which makes last week’s stunt indicative of LinkedIn’s desire to become more important in your life.

LinkedIn has a ways to go before it could potentially achieve that significance it wants in your life. Though some people were soured by the experience of discovering that 20 million other people got similar emails, I don’t think it diminishes the social win. It won’t change perception of LinkedIn overnight, but it’s a nice step towards making the platform relevant to a younger wave of users.

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