Trends and Tragedies of 2011

With the end of the year approaching I figure it’s time for an end of the year review of what went right and what went wrong in 2011. In fact, this will be the start of an annual review. Without further ado, here are my top two trends and top two tragedies.

Trends :

2) Groupon Epidemic: Perhaps the most interesting development of the year was the Groupon epidemic, as dozens of other daily deals sites quickly sprang up to compete. LivingSocial, Facebook Deals, Google Offers, and many more. Along with that has been the quest to turn their often one-time customers into repeat customers. My guess is that until there are memberships and membership rewards for sites like these that pattern will continue.

1) Google+: Marking the expansion of social media was the arrival of Google+ September 20th. Google+ went where Facebook had yet to go, the next plateau so to speak. Google+ offered users the ability to create social circles and chose what was shared with each group (or circle). Additionally, Google+ gained attention with its “Hangouts” video chat feature where you can chat with up to ten people at a time and share content while chatting. Meanwhile, MySpace tried to reinvent itself by focusing more on music. Haven’t heard how that worked out, so either MySpace is hanging out under the radar or it died for the second and final time.

Tragedies:

2) Lowe’s: Yes, the recent incident with Lowe’s makes my list for a few reasons. Not only was it the wrong move, it came at the worst possible time when all companies are under the microscope. The holiday season. Lowe’s pulled its advertising from TLC’s American Muslim based on a call to boycott by Florida Family Association. Then they tried to claim it was because the show sparked a lot of controversy and they wanted to opt out of that conversation. Basically it made them look racist. It was poorly timed and badly handled, need I say more?

1) Groupon: In this case a top trend was also a tragedy as demonstrated during this year’s Super Bowl. Something Groupon has in common with Lowe’s is that the Super Bowl is also a poor time to make a poor statement. However, it’s even worse when it’s your public debut as was the case here. Groupon’s first ad spot was a series of commercials that turned tragedies into punch lines to drive deal-seekers to its site. Most notable was the plight of Tibet being turned into an opportunity to try its food. Oppression, destruction of the rainforest and decreasing whale populations are hardly material for a joke, but that’s where Groupon went here. Although it did attempt to make amends, Groupon learned a valuable lesson. Think before you speak or insert foot in mouth here.

Well, there you have it, a few things that made positive and not so positive imprints on the year 2011. A lesson in what to do, and what never to do again. As companies and brands prepare to start the year with a clean slate, well some of them anyways, we look to 2012 and the possibilities it brings for advertising, marketing, social media and journalism. Possibilities for new things, and in some cases rebranding and retribution, but mostly new things. Until next year, this is me, signing off.

 

Press Release 2.0

As the web has evolved, so have the press releases we write. There are still those out there who are quick to dismiss traditional PR altogether, and that includes the press release. The last time I wrote about this topic was back when I started this blog and you can refer to that post here
http://bit.ly/qd3ebx
. When I first spoke about this topic I mentioned how PR practitioners were increasingly turning to email versions and making their sent copies into unique presentations that command attention. What’s changed since then? More formats have come about and that means different ways to present press releases and make them stand out. Kevin Roose and Peter Lattman showcase this point, discussing how press releases have now found their way into blog posts, tweets and haiku formats
http://nyti.ms/nqLbjG
. Here is a recount of their examples:

- When Google bought Zagat, Google announced the addition via a blog entry titled “Google Just Got Zagat-Rated!” Meanwhile, Zagat told its website visitors via a mock review of Google using their 30-point system and quote-heavy style.

- Groupon changed up their press release by using casual language, mentioning that it had raised “like, a billion dollars” in its latest finance round.

- Zynga used a witty lead “What do Shrek and FarmVille have in common (besides donkeys and onions)?” to announce the hiring of DreamWorks Chief Executive Jeffrey Katzenburg to its board.

- Marissa Mayer, Google’s top executive for local and location services, used a Twitter haiku to announce Google’s Zagat buy: “Acquisition announcement haiku: Delightful deal done, Zagat and Google now one; foodies have more fun!”

Now this approach isn’t for everyone. It’s important to take note of the tone of your company, as in some places it’s more of a match for company culture than at others. As if different formats weren’t enough to consider, Google News has a new feature that lets publishers flag their best content and standout in search results
http://bit.ly/oFCkNw
. It can also be used to flag others’ content when they have a good scoop. Oddly enough, the new feature is called “Standout” and it’s a tag (basic syntax: <link rel="standout" href="LINK TO STORY" />)that goes in the “head” element of a website’s HTML code. This type of content is displayed with a ‘featured’ label on Google News’s homepage as well as in search results. It’s truly the other part of the equation. You have key words, but those only take you so far. Facebook’s newsfeed highlights top stories, and Google now does the same, but instead it gives publishers the ability to highlight their own content in the vast feed of links generated by search.

Hence, there are still many ways to make press release content stand out. Wit, jokes, puns, blog entries, tweets, haiku or flagging content, all are clever ways to break through the clutter and get your message across. The press release is still alive and kicking, and format opportunities are endless. As long as there are more opportunities, press releases will exist. I’m not the only one who shares this viewpoint. Recently, Vanessa Horwell stated in her article that PR peeps should “…not turn their back on traditional media. Not yet….While the media pie has gotten bigger and there are more pieces to cut, you never know when you might need them”
http://bit.ly/r6sUV1
. She closes by saying they should “…see how the future media chain links connect and how that affects the destiny of traditional media before we sever those ties for good.” I couldn’t have said it better myself. The times may be changing, but they aren’t changing so fast that they have outgrown traditional media. There is clearly a time and a place for it, and with that, a time and a place for some form of a press release.

The Future of Groupon

There have been a lot of announcements about Groupon lately and speculation about its future in light of its recent IPO filing. Let’s dive into the conversation. The main inspiration for this post comes from E.B. Boyd declaring Groupon will either go the route of Webvan or become the next Google (obviously not literally because Groupon is not a search engine)
http://bit.ly/muZDWU
. Webvan was apparently the first one to think of home delivery for groceries, with customers ordering groceries online to be delivered in a half hour window, which is similar to what many grocery stores now offer as a service that you can sign up for online. Wonder if Webvan patented that? Anyways, the model proved unsustainable and the company floundered. Then there’s Google, which originated the search engine concept and changed the industry forever. If Groupon were able to go that route, it would be because they added services that added something to and resonated with their bottom line. In other words, services that are an extension of the ones they already offer. This would be the most profitable outcome and would prevent them from going the way of Webvan. While I am not going to take sides, I do believe Groupon is sending out a mixed message. I believe this because of two recent articles I read, one about the founders funding on online pawn shop venture and another about its possible insertion into grocery store loyalty programs. One points them in the right direction and the other sends a mixed message. The one that sends a mixed message is undoubtedly the pawn shop venture. Granted this is through their investment group Lightbank, but it still reflects on them and they are still associated with it in some capacity. The company they are funding is called Pawngo
http://bit.ly/kwY6C0
. Basically, customers who need between $1,500 and $15,000 send in information about items they would like to pawn and receive an estimate within the hour. The items are shipped to Pawngo’s vault and the loans last 3-6 months. Eventually they may even extend the business to sell unclaimed items.

This venture sends a mixed message about Groupon because it does not relate back to who they are. The worst possible thing that Groupon can do is confuse its audience by not proclaiming a strong brand identity. If Groupon ventures into too many unrelated side projects it runs the risk of going that direction. Confusing its audience means that it will most likely lose users and merchants and lose touch with its origins, which are the daily deals that made them so well-known in the first place. However, if it stays smart and executes new extensions of this daily deal technology then the sky is the limit. E.B. Boyd discusses the opportunity for Groupon to carve an additional niche in driving sales during non peak hours by offering immediate deals that customers sign up to be notified of via their phone when they are in the vicinity. Surely this is one way they can capitalize on the foundation they have built. Another is the partnership with grocery store loyalty programs
http://bit.ly/laS8g7
. Recently Groupon has been testing this concept out with Big Y stores. An example of what they could offer can be found in their pilot seafood deal where customers could purchase a $39.99 seafood grill pack of lobster tails, clams, mussels, etc. for $24. This prepaid deal would be loaded into their account and reflected at checkout. Groupon could revitalize the coupon industry. It’s a natural extension of the deals they offer in partnership with other businesses and would be a great niche for them to acquire. That type of innovation is what is going to set them apart from any comparisons to Webvan. Groupon already sent a mixed message with their Superbowl commercial, lest we forget, and so the smart move would be to clearly spell out who they are from now on. That is how you build a company, by forming a strong brand identity and leveraging it with brand extensions that build on the bottom line. Groupon seems like a company who is willing to take risks, but they need to be smart ones. The next move, is up to Groupon.

The Groupon Effect: An Epidemic is Born

It all started with McDonald’s and the supersize trend. The objective? Take ordinary portion sizes and grossly enlarge them for an additional cost. Other fast food companies were close behind them. Similar to this is the recent Groupon epidemic, as lots of different companies vie for their 15 minutes of daily deal fame. Groupon pioneered, and is now synonymous with, the daily deal movement but there are many more jumping on the bandwagon. Newspapers like the New York Times and the San Diego Union Tribune are joining in, and some are making more money with deals than with interactive advertising
http://bit.ly/m7qDY7
. Magazines are considering it too, but conglomerates with lots of titles and national advertisers appear to have more success with it. Google has launched one it is currently beta testing, starting with Portland, OR of all places, called Google Offers
http://bit.ly/dHoOMe
. Perhaps the most similar to Groupon, Google Offers delivers deals via email. Packaged goods have even gotten in on the action, with General Mills being the first one to ever launch a deal
http://bit.ly/jkMamb
. Other websites are also following suit and find it generates more interest because the audience is already more interested in the product category and not just in the deals. Facebook is also launching a similar but more social approach with free ‘Facebook Deals,’ otherwise known as ‘check-in deals,’ to distinguish it from ‘Social Deals’ where Facebook Credits or money is needed to purchase the deal
http://selnd.com/mN2h7J
. What does this mean for Groupon and LivingSocial? How will this trend play out?

Well, if the supersize trend is any indication, market saturation is always a possible outcome. The flip side to this is that there will be a deals site for every kind of consumer known to mankind and it will become the norm with the expectation that every company has one. Another way this could play out is that Groupon and/or LivingSocial buys up all of or most of these deal sites and monopolizes the trend. No matter how it plays out, Groupon and LivingSocial will always have the edge because they have the revenue to expand globally and are doing so as others enter the game. Perhaps the biggest challenge to any deals site is overcoming the ‘one night stand,’ as when a user visits once to purchase a deal rather than becoming a repeat customer. If companies can figure out how to do that then they are on their way to building longevity for themselves in this endeavor. One way to do this is by starting a loyalty program that builds on daily deals outside of the online world
http://bit.ly/jkMamb
. Another way to do this, and probably how Google Offers will find success, is by signing customers up to receive updates on deals via email. As the saying goes: ‘out of sight, out of mind.’ By capitalizing on this and the persuasion principle of repetition, in this case placing a deals site and its deals in front of consumers’ faces over and over, a deals site stands to gain a loyal following. Should every company launch a daily deals site? Probably not. There are some industries where it is simply not applicable, such as the financial industry. It is all a matter of gauging whether it is a fit for your audience and then, if it is, working to make it pay off in great dividends for you and the brand you are promoting. You may not have a say in how the trend fares over time, but you do have a say in how it affects you and your brand. Use it wisely and it may have a great payoff. The choice, and the power, is in your hands.

After Groupon Ad Disaster, What’s Next?

I was not planning on another Super Bowl ad post so soon, but after reading about the controversy surrounding Groupon’s series of Super Bowl ads I felt the need to comment. Many of you saw the ad where Groupon juxtaposed the human rights crisis in Tibet with their brand in one of their ads during the Superbowl. There were two others in this series, before and after the game, that made for a bad first impression for Groupon. One features Cuba Gooding Jr. lamenting the dwindling whale population and then praising a discounted whale-watching cruise. The other features Elizabeth Hurley’s distress over the endangered Amazon rainforests and then promotes a Brazilian wax deal. According to CNN Wire Staff
http://bit.ly/fvhHut
 the controversial ads have been pulled. Now the question is, what’s next? Some, like Liz Strauss
http://bit.ly/gd2vRm
, say an apology is necessary. I would like to take that concept one step farther, because I believe that it will take more than an apology to set things right for Groupon. This was their introduction to mass society, which means they need a reintroduction. In short, I think this reintroduction should come in the form of a rebrand. Rebranding is something that a lot of successful companies have had to do at some point or another, just look at Old Spice. Sometimes rebranding gets a bad rap as a death sentence, but if done correctly it can restore a company’s reputation. Judith Aquino’s “The 10 Most Successful Rebranding Campaigns Ever”
http://read.bi/hkjt48
 showcases lessons that could prove useful in determining the right moves for Groupon’s endeavor.

McDonald’s rebranding lesson was “Pay attention to what the public says about you and respond with products and services that counteract those accusations.” Groupon is accused of trivializing the causes it actually cares about. What Groupon intended to do was tie their brand back to charitable giving, as they have a donation website for the charitable causes related to their Super Bowl ads. Part of their rebrand should be focusing on the seriousness of their connection to charitable giving to counteract the humorous take that drove people away. Old Spice’s rebranding lesson is that “a clever ad + smart use of social media can produce a fresh identity.” Instead of a clever ad, Groupon needs a new commercial that introduces Groupon and ties it to those charitable causes in a straightforward manner. Then, Groupon needs to utilize social media to drive people to its donation site. Burberry’s rebranding lesson is that “brands can be successfully revamped by adapting current styles while celebrating its history.” Christopher Heine
http://bit.ly/hnO5TY
 cites Groupon’s origins as “ThePoint.com” and a place of “collective action and philanthropy” and reveals that Groupon was poking fun at their own roots. Instead, Groupon should celebrate their roots by drawing positive attention to themselves. Earth Day is April 22, and Groupon could easily use this as an opportunity to do that by offering special Earth Day deals and donating a portion of the proceeds. Then, to build trust, they could devote a YouTube channel to showing how those donations made an impact on the charitable causes Groupon supports. Naturally these are simply a jumping off point. Groupon may decide to do something totally different and that is their choice, as long as it brings about the same end result. The fact remains that there is a lot of relevance between these rebranding lessons and the steps that Groupon must take to repair their reputation and make good on their bad first impression. To put it in golf terms, Groupon needs to take a mulligan. However you look at it, Groupon needs to establish a fresh image and rebranding is a critical component. The next move is Groupon’s.