The Reason: A marketers guide to engaging cliques

Microsoft deletes the black guy

Microsoft is in hot water because of its retouching of a print ad for two different markets.  Microsoft used this ad with the black guy for its domestic marketing campaign and then decided to reuse the same ad sans black guy in Poland.  If you look closely at the second image, you’ll notice his hand is still the same.  I guess Microsoft didn’t think the image of the black guy would resonate with their target market. 

Is this a big deal?  No, not really.  Marketers develop creative to resonate with different audiences all the time.  Ah, maybe that’s The Reason people are upset… Microsoft used the exact same creative and just switched out faces.  That’s racial insensitivity.  There are two questions that need to be answered in this type of situation: (1) if a creative resonates across different audiences, is there really a need to change faces used in each market? (2) If there’s a substantive Reason to use different faces for different markets, doesn’t that imply there may be a need to develop substantively different creative?

[Update via twitter: Microsoft has re-inserted the black guy into the ad]

Microsoft says “what’s beef?”

Microsoft reminds me of the bully in the hood always looking for beef.  They’re spending $300 million on their “Laptop Hunters” ads so Apple will stop making ‘em look like dweebs.  They’re fighting with Nintendo and Sony for console space in our living room.  And, they’re about to mount a $100 million marketing campaign to go mano y mano with Google and to a lesser extent Yahoo for web search.  By comparison, Google spent a total of $25 million on ads in 2008.

For those that don’t know, Microsoft currently does web search under the LiveSearch moniker.  Rumor has it that they will rebrand the site service as Bing. You know, it’s kinda like shorthand for Tony Soprano’s girlie bar.  As part of the re-branding effort, expect to see ads appearing on the web, TV, radio, newspapers and magazines.

I’m not a big fan of conceding, but I think Microsoft should concede desktop web search to Google.  And by concede, I mean Microsoft should focus on web search for emerging platforms like mobile devices.

The Reason… Strategy 101 – Compete where there is no competition i.e  be a monopolist.  While consumers are increasingly spending more time (and money) on their mobile devices, there is no established search provider cornering that market.  For the most part, you’ll just be paying slotting fees to mobile phone providers so “Bing” shows up as the default search provider.  But, that’s the low-hanging fruit, and The Reason is all about reaching higher, so … let’s look for the challenge here.

The Reason... Strategy 201 - Differentiate. Microsoft should leverage its previous $800 million investment in Tellme Networks Inc., a voice-recognition technology company -- a.k.a. your differentiator.  Spend your Bing marketing budget letting consumers know how easy it is to search on their mobile devices... "Just say what you want, and 'Bing' ...get your search results texted to you instantaneously.  This, of course, relies on the sophistication of your technology to decipher accents and colloquialisms, and the robustness of your database.  But, once you step on the court, no more excuses, right?  And for Microsoft, the money part comes from advertiser supported text messages.

Search Engine for Black Folks

Rushmore Drive, launched last quarter, is an online search engine aimed towards the African American community.  Yes, a search engine. My guess is you’re wondering why someone would even bother going down this road … ask MSN Search, now LiveSearch … I bet they’d wave a big “Dead End” sign, with “Except for Google” in fine print.

I learned about Rushmore Drive last week at the Marketing to African Americans with Excellence (MAAX) summit in Chicago.  At first, I thought these guys were overly ambitious …no biggie, so am I.  But, I’m also a Reason-able guy, always willing to consider the possibilities ...

So, let’s start with the basics. This is black segregation and I just don’t like it.  Do I really need different search results than my non-African-American friends? No? Ummm, maybe?

A bit of Reasoning:

• Segmentation, as taught in Marketing 101, is segregation.  Got a Gen Y strategy?  Did you source an agency to target the fast-growing Hispanic segment?  How about grass-roots initiatives to embed your brand within the Asian-American community?  Segmentation at it’s finest.
• The essence of the Rushmore Drive brand is not simply search, but lifestyle-focused, value-driven, culture-based search.  Lots of qualifiers, yes … but also proven – think Netflix or Amazon recommendations.
  • Search “basketball” – the first two results are pretty much Google-like, but the third is on African-American basketball players from the 1950s. Think “Customers who bought this item also bought …”
• So, just like that recommended CD I didn’t plan on buying when all I wanted to pick up was the Lil’ Wayne CD, maybe I don’t need Rushmore Drive, but now I’m thinking about it.  At the very least, I appreciate the tip.
• The key for Rushmore Drive will be whether or not they effectively deliver their brand promise.  If you don’t really get me, my lifestyle, my values, etc.  Your specialized search results become as valuable as nightlife tips from Pacman Jones.

Yahoo announces Ymail

Sounds awfully close to Gmail.  Yahoo mail has the most worldwide subscribers (266 million worldwide in April) and they want to increase this by adding another url.  Enter ymail and rocketmail.  The thinking is subscriber growth has slowed because people are limited to alphanumeric names.  No one likes alphanumeric names.  I hated my hotmail address having my birthday, but it was the only thing I could think of when hotmail kept telling me other names were taken.   

Here’s the deal.  Email is free to us and creates a huge advertising windfall for its service providers.  The big three (funny how that used to be a car reference) -- Yahoo, MSN, and Gmail provide free email to increase site visits and advertising opportunities.  It’s a really good business model.  Unfortunately, Ymail is not the way to build on that model. 

Let me offer a voice of reason:

• Offer increased naming options, which is the thinking behind Ymail.  Make it easy for people to register their own url’s and provide a familiar yahoo interface.  Yahoo currently hosts business email.  Skin this service and make a push on the consumer side. 
• Cloud computing is where it’s at. Yahoo already offers unlimited email storage.  So backup my hard drive and allow me access to my files from any computer via yahoo.com

Let's make it a Netflix night

I think that's a play on the Blockbuster slogan. The Netflix slogan, "There's a movie waiting at home," doesn't quite roll off the tongue. Anyhow, like Paul Pierce, Netflix is the truth. I've been a proud member since '05 and like many people I've been wondering if the end is near for them. I mean, aren't we too advanced to rely on plastic discs to deliver entertainment? [side-note: The Reason was one of the marketing agencies hired to help Blu-ray overtake HD DVD] So, yes, while we are too advanced, seemingly discs will be around for a while.

Back to Netflix - I thought Netflix made a power move when they started streaming movies online. Big fan … until I realized it wasn't compatible with my Mac. Now yesterday, I hear about a Netflix set top box that delivers streaming video to your television. I know, I know … Steve Jobs did one of his famous intros for this product two years ago, he called it Apple TV. No doubt, there are already plenty of players in this space - Amazon Unbox and Vudu - both with limited brand awareness.

Netflix had to throw their hat in the ring. Always have to show investors you know where the industry is going. The stock price jumped 2% (about 65 cents) to $31.75, on the news. While strategically on-point, unfortunately for Netflix, their system is not quite prime time-ready.

The Reason:
Essentially, Netflix is selling a high-tech box-set of 10,000 movies – for $100. Cost per unit – a great deal. But has anyone seen the movies on this list? These are the same movies available On-Demand for free, and even at that price, I'm still not pressing the "Select" button.

Netflix should heed a voice of Reason:

1. Learn from Tivo's mistake - License your technology NOW. I already have a cable box and a DVD player next to my plasma – real estate is precious, so any new technology has to really bring something. Netflix should partner with DirecTV or cable providers to power their movie distribution service.
2. Rumor has it Netflix may stream movies via XBOX 360. Here's a tip, Netflix: DO IT. You already use Microsoft technology to stream movies, this screams no-brainer. (The other no-brainer … while you're at it, find a way to stream to my Mac.)
3. The game changer. More buzz … Best Buy to buy Netflix?  The Netflix box with a retail channel (read: walk-in traffic, Sunday paper inserts, Reward Zone bonuses, seasonal sales) that covers 3 of the 4 P's! Definitely makes it interesting … throw in a Blu-ray player and out comes my Reward Zone card.