Friday, May 24, 2013

Tumblr Sold to Yahoo


The recent acquisition of Tumblr by Yahoo has been on everyone discussion list in recent days.
 Despite all the hype surrounding the sale, one key point is being largely overlooked in the analysis.
It is fairly clear that Tumblr's owners sold the renowned network because the company could not generate the amount of revenue that had been predicted with the advent of native ads last year. 



After earning only a modest $13 million last year from its beloved Radar spot, this year Tumblr has continued to struggle and the rumors have been that it was in fact struggling to pay its bills.

Based on this, it is not surprising that management decided to offload Tumblr.  In a conference call this morning, Not surprisingly Yahoo CFO Ken Goldman said that there were only modest expectations for revenues growth  during the balance of 2013. 

Tumblr’s ongoing inability to capitalise on the full potential of its site, is difficult to understand because on paper Tumblr has much to offer potential advertisers including a passionate and engaged community and a fully functional and elegant a beautiful interface  Despite this it has been speculated that only a few percentage points of its available advertising space. 

Suffice to say it will be interesting to see what  strategies and tactical refinements Yahoo is planning to adopt to help ramp up these disappointing results for Tumblr in recent times.

And until next time, good luck and good marketing.

Regards,
Daniele.

Saturday, May 18, 2013

Are Your Objectives SMART Objectives

This week as part of a training seminar I was involved with the issue of objective setting was covered off and I have to say that it really never fails to amaze me how totally unsophisticated firms are when it comes to proactively setting their own business objectives.




It may be cliche to say this, but you need to know where you're going to get there.

But beyond actually doing the objectives, the key is to set appropriate objectives that meet all of the SMART objective criteria.

Perhaps the best way to qualify this is with a real world example that occurred to me some years ago whilst I was still working in the pharmaceutical arena.

In this specific example the firm in its wisdom had said that it required all its selling stagg to achieve a dollar growth of 80% for the calendar year.

Now let's kook at which of the SMART criteria this objective met and which it didn't meet.

Well it was certainly specific as it tells you simply you need to grow by 80%.  Tick.
I also have to say that the objective was measurable as you knew what you earnt last year and you know what you're earning this year.  Another tick.

Was the objective relevant? Again the answer is yes as it relates directly to what our business was about, and was it timely. Again yes it is timely bas it gives a specific time range that the objective needs to be achieved in i.e. the calendar year.  Four out of four ticks.

Ok then the last criteria, was it attainable.   At the time I was the number one performing representative in Australia and had a growth rate of 40% compared to a national growth rate of 20%.
So despite being double the rest of the nation, I was only 50% to budget.   So was it attainable ?
Sadly no. 

Take out point.  Even if you have four out of five ticks, if you don't have all five your objective is of no use and will actually hurt your organisations motivation, morale and ultimately performance.
File this under a cautionary tale.

Until next time, good luck and good marketing.
Regards,
Daniele.


Friday, May 10, 2013

LinkedIn Celebrates Its Tenth Anniversary

I really couldn't let this week go by without saying a heart felt well done to all the people at LinkedIn and congratulate them all on the occasion of the 10th anniversary since LinkedIn was launched in May 2013.


Since it's launch the world's leading professional  (and in my opinion the best) social media network, has gone from strength to strength to today having around 250 million users globally.
As well recently LinkedIn CEO Jeff Weiner said that the LinkedIn Platform is spread across 1 million sites. He went o0n to add that,  “there’s over one million unique domain buttons on the Internet with LinkedIn share buttons.

But as we know, bigger is not always bigger and ultimately any business needs to deliver value and profit. On this front LinkedIn is also leading from the front of the pack with it's share price almost quadrippling  since the company launched the stock in 2011.

Through these 10 years it's fair to say that LinkedIn has had its ups and downs, and according to Co-founder Reid Hoffman in a recent interview on the Bloomberg Network, struggled through its early days where it had only modest membership and growth.

But like all good businesses it found its own unique point of difference, which in its case was allowing people to see who else they knew that was also on the network. And this as they say was the proverbial coup de grace which changed its trajectory forever.

Well done again LinkedIn. Something tells me your next ten years will be even better.
And until next time, good luck and good marketing.

Regards,
Daniele.

Friday, May 3, 2013

LinkedIn Quarter 1 2013 results up by 72%

By Ingrid Lunden on 

http://techcrunch.com/2013/05/02/linkedin-stock-dips-10-on-q2-forecast-of-slowing-growth-even-as-it-beats-q1-estimates-on-sales-of-324-7m-eps-0-45/ 

LinkedIn has just reported Q1 earnings of $324.7 million, up 72% year-on-year, and non-GAAP earnings per share of $0.45, both soundly beating analysts’ estimates (via First Call) of $317 million and EPS of $0.31; as well as LinkedIn’s own guidance from last quarter, when it said it expected between $305 million and $310 million in revenues. Net income for Q1 was $22.6 million a big rise on the $5.0 million in earnings last year. Nevertheless, shares of the work-focused social network, however, are down nearly 11% in after-hours trading on news that next quarter won’t be quite as rosy.
First Call had estimated revenues of Q2 of $359 million, but today LinkedIn issued guidance that it expects sales of between $342 million and $347 million. That’s up between 50% and 52% on the same quarter a year ago, and is a sign of how growth is slowing.
The company says it now has 225 million users, up from 200 million last quarter. Judging by some of the product launches in the last few weeks it may have been that LinkedIn is laying the groundwork for how it will better monetize the users it has longer term as other revenue streams and customer acquisition decelerate. The new launches have included upgraded, more media-enhanced profiles; a Contacts update to add in more “personal assistant” life organizing features; new iPhone and Android apps; an expanded search engine; @mentions in status updates; Klout-style endorsements; and a Recruiter homepage redesign for the site’s most dedicated user vertical.
Here is how different divisions of the company have performed this past quarter:
Talent Solutions revenue was $184.3 million, up 80% over last year. Talent Solutions revenue was 57% of total revenue in the first quarter of 2013, versus 54% last year.
Marketing Solutions revenue was $74.8 million, up 56% compared to the first quarter of 2012. Marketing Solutions revenue declined by 2 percentage points to make up 23% of total revenue in the first quarter of 2013.
Premium Subscriptions products revenue was $65.6 million, up 73% compared to the first quarter of 2012. It remained level at 20% of total revenue for Q1.
The U.S. remains the biggest market for the company, with $201.4 million in revenue, 62% of the total. International markets sales were $123.3 million.
LinkedIn continues to have a heavy amount of its sales coming from its “field sales channel”: $184 million compared to $140.7 million online. Field sales, involving actual people, are more costly for LinkedIn and so the company will likely be trying to increase its online sales in quarters ahead to improve earnings as growth slows.
We’re just about to listen to the call and will update with details from there.

linkedin-q113

Let's continue to keep our eye on LinkedIn to see how they track for the balance of 2013.
And until ext time, good luck and good marketing.
Regards,
Daniele.

Wednesday, April 24, 2013

Local Marketers Positive About Incresed Future Spending in 2013


Recently the The Australian Marketing Institute and Colmar Brunton's Fourth Annual Senior Marketers Monitor revealed a range of insights about current market sentiment and practice, providing pointers to changing levels of marketing activity. 



The research was conducted during December 2012, and the key findings included:

Marketing budgets continue to grow:   

Overall, budgets are expected to record another increase in 2013, although only at around an average 1% (against the 3.5% recorded in the previous survey, and the 4% growth of 2011).  One third (34%) of marketers are anticipating their 2013 budgets to increase, against 38% expecting expenditures to remain largely unchanged.


According to Australian Marketing Institute CEO, Mark Crowe: “Again we are seeing large budget variances across all sectors, but organisations with a turnover of under $150 million are more likely to be expecting budget increases in the year ahead and among those expecting increases the average lift is a healthy 16%. While the top marketing priorities include measures to increase sales, maximising marketing expenditure efficiency and focusing on more profitable market segments, there are interesting shifts in the intended use of communication channels.”

Marketers continue to feel positive about their profession and its role   

Similar to the previous two years, most senior marketers (76%) feel ‘positive’ or ‘very positive’ about the role and influence of marketing in Australia today.

According to Mark Crowe: “ Despite the variations in budgets forecast, there is a continuing confidence in marketing’s role and influence in Australian business. The latest survey lends further support to earlier indications that marketers’ confidence in the future is not directly linked to budgets.”

Marketing Priorities    

No major changes over 2012, but emerging shifts in the use of social networking and Web 2.0.

•    Measures to increase sales
•    Customer acquisition
•    Maximising efficiency of marketing expenditure
•    Maintaining, building brand/s
•    More profitable market segments

Challenges faced by marketers

•    Effectively getting messages to market 
•    Acquiring new customers
•    Maintaining current customer base
•    Demonstrating the contribution of marketing to senior management
•    Maintaining pricing/margins

Changes in media expenditure

In terms of use of media the top five increased channels are:

•    Social networking and web 2.0 applications
•    Online advertising
•    Public relations
•    Viral marketing
•    Direct marketing

“Traditional media is being used more by a minority of marketers,” comments Mark Crowe, “with the stand-out examples being Print (12%), radio (8%) and Free to Air TV (4%).”

The survey was run online and is based on 259 responses from senior marketers.  The survey was administered in December 2012 and is the fourth annual Senior Marketers Monitor conducted by the Australian Marketing Institute and Colmar Brunton. 


This research looks very positive and is suggestive of a more positive role for the marketing profession within the overall scheme of Australian business which is good news for all of us.

And until next time, good luck and good marketing.

Regards,
Daniele.






Friday, April 19, 2013

Speaking of Habits



If You want to achieve something great, don’t look for inspiration.  Instead look for good habits.
                                                                                                                                                                Sal Lima



The Four Habits that Form Habits
By Leo Babauta

My daughter wants to work out more, but she has a hard time forming the habit (many of you might be familiar with this problem). From having to get dressed to go to the gym, to actually going to the gym, to the thought of a hard workout … our minds tend to put off the habit.
The solution is exceedingly simple: just do 3 pushups. Or tell yourself you have to walk/jog for just one minute.
Make it so easy you can’t say no.
Of course, most people will think that’s too easy, and tell themselves they have to do more than that. Leo’s advice is for other people! Unfortunately, it’s this mindset that causes people to fail at habits — we think we can do more, despite past evidence to the contrary, and so we aspire to greatness. We try to climb Everest before we’ve learned to walk.
Learn the fundamentals of habits before you try to do the advanced skills. If I could convince people of that, I could get millions to change their habits, be healthier, simplify, procrastinate less, start creating amazing things.
Today we’re going to go over the fundamentals of habit — four key habits to form habits. If you can learn these four habits, you’ll have the foundation to form pretty much any habit.
Habit 1: Start Exceedingly Small
Another common habit that too few people actually do is flossing daily. So my advice is just floss one tooth the first night.
Of course, that seems to ridiculous most people laugh. But I’m totally serious: if you start out exceedingly small, you won’t say no. You’ll feel crazy if you don’t do it. And so you’ll actually do it!
That’s the point. Actually doing the habit is much more important than how much you do.
If you want to exercise, it’s more important that you actually do the exercise on a regular basis, rather than doing enough to get a benefit right away. Sure, maybe you need 30 minutes of exercise to see some fitness improvements, but try doing 30 minutes a day for two weeks. See how far you get, if you haven’t been exercising regularly. Then, if you don’t succeed, try 1-2 minutes a day. See how far you get there.
If you can do two weeks of 1-2 minutes of exercise, you have a strong foundation for a habit. Add another week or two, and the habit is almost ingrained. Once the habit is strong, you can add a few minutes here and there. Soon you’ll be doing 30 minutes on a regular basis — but you started out really small.
Try the flossing habit — try to floss every tooth every night, and see how far you get. You might succeed … but if you fail, try just one tooth per night and see how far you get. Your mileage will vary, but on average most people get farther with a habit when they start small.
One glass of water a day. One extra vegetable. Three pushups. One sentence of writing a day. Two minutes of meditation. This is how you start a habit that lasts.
Habit 2: Be Mindful of Negative Thoughts
Most people will skip this habit, because they don’t think it’s necessary. Then they wonder why the habit failed.
When I quit smoking in 2005, I finally learned to watch my thoughts. I saw that I had a lot of self-talk I wasn’t aware of. My mind would start rationalizing the idea of smoking just one cigarette. “One won’t hurt!” “Why are you torturing yourself?” “Is this really worth it?” “Just give in, it’s much easier.” “You can’t do this, it’s too hard.”
Think about those thoughts for a second. How many did I have that I wasn’t aware of? How powerful were they, when I didn’t realize they were there? How many times did they cause me to smoke when I had previously tried to quit? And how often do these kinds of thoughts act on you?
The same thoughts happened when I tried to start running the next month — my mind would say, “You should stop now. It’s too hard. You’ll feel much better when you stop.” And of course, thoughts like these are very tempting, very powerful.
Then I started to learn to eat healthier, and repeatedly failed because I would give in to chips and pizza and ice cream. My mind would say, “You’ve been doing good, and this food is your reward!” Or, “Why are you denying yourself pleasure — life isn’t supposed to be hard!”
I learned to let these thoughts go. They are just thoughts — they don’t control me. They are just things that happen, like a leaf falling from a tree as I run by. Interesting phenomena, but not a determination of my life.
Watch the thoughts. Learn to let them go. Get good at discomfort. Triumph over the childish selfish scared mind.
Habit 3: Savor the Habit
This is the converse of Habit 2, but just as important. Your new habit isn’t some sort of sacrifice, some sort of chore you need to get through to get to your better life.
Your new habit is your better life.
The new habit, whatever it is, should be something you enjoy. Otherwise, don’t do it.
If you want to eat healthier, learn to enjoy the taste of this delicious, fresh, healthy food. An apple can be just as delicious as any junk food snack, if you pay attention and savor it.
If you are exercising, pay close attention to and enjoy the moving of the body, the feeling of exertion, the flow of blood through your brain, the focus.
If you are writing, sit with the words and enjoy the quiet concentration, the exhilaration of creation.
Learn to enjoy the habit, and the habit will become its own reward. The goal isn’t some distant achievement, but the process itself.
Habit 4: Have a Plan for When You Falter
This is really key — I can’t count how many people I know who have done really well with their habit for 6-7 days, and then when some disruption happened (it’s incredibly common), and then never re-started.
Get in the habit of re-starting when you falter.
How do you do that? Get some accountability — promise a friend or your spouse that you’ll pay $25 if you miss your new habit two days in a row … and then double that the next day ($50), and double that if you miss four days in a row ($100), and double every day you miss in a row after that. Or promise to mow someone’s lawn or wash their car if you miss three days in a row. Tell everyone on Facebook that you’ll personally clean their bathrooms if you miss three days in a row.
Missing one day in a row is not the end of the habit. Missing two days isn’t great, but you can recover. Miss three days, and the habit is shot. So don’t allow yourself to miss three days, and try your damndest not to even miss two days.
Forming the Four Habits
So how do you form the habits that form all other habits?
As simply as possible.
Choose one incredibly easy habit to do in the next two weeks. Floss one tooth. Drink one glass of water. Eat one fruit. Exercise or meditate or write or do yoga for 2 minutes a day. Just two minutes.
Then apply all four habits to those two minutes, every day. You’ll start to learn how to form a new habit, and that’s a skill that will pay off for a lifetime.

A Great article that I hope you all apply to your businesses and life.
And until next time, good luck and good marketing.
Regards,
Daniele.

Sunday, April 14, 2013

Differentiating Your Brand With A Powerful Unique Selling Proposition (USP)

One thing that never ceases to amaze me is how many businesses out there put little or no effort into differentiating themselves from their rival businesses in any meaning way.

Ask yourself this very important question to determine how differentiated you are in the minds of your target audience. Namely, when my prospects look at our brand what differences do they see that will make them buy from us and not them?

Fairly confronting question I know and one that when I ask it at seminars and in one on one consulting sessions with clients, too often at best leaves the person looking uncomfortable and at worst leaves them speechless as the obvious fact that are in fact totally undifferentiated starts to dawn on them.

If this wasn't bad enough, other businesses realising that were in this group, make some cosmetic change for the sake of being different, not realising that this change does nothing to differentiate them in  genuine way from the other business that they need to compete with.

 For this change to matter it needs to meet some important criteria. Firstly the difference you make needs to relate directly to the need of the target audience, and by definition be something that the opposition are not offering despite being something that is sought after by customers. In short the change must be meaningful.

Secondly the change must be sustainable. What good is it to have a valuable point of difference that is here today and gone tomorrow.  When you are putting your marketing mix together, the delivery of the appropriate package of goods and services, needs to be delivered consistently over time in a uniform and predictable manner ensuring positive consumer outcomes and experience.

If both of these criteria are achievable then you USP will work and will in fact make you stand out in a positive way from the proverbial crowd. Usually this will then be the foundation to position you brand for long term success in your market place.

So now it's over to you. Think about your product range or brand. Identify your existing points of differentiation and see how effectively they meet the dual criteria outlines above.  If they do, well done. On the other hand, if they don't you may have some additional strategising ahead of you.  

And until next time, good luck and good marketing.

Regards,
Daniele.