Caution on Click Through Testing

Direct response methods have tremendous potential. The promise really is to introduce the scientific method to choices advertisers have to make. The trick is to have a complete model of consumer response, and to get the measurement right.

On the Web, this is not as simple as just tossing up a variety of ad executions and counting the clicks for the differing promotional offers.

Indeed, studies have shown that extrinsic rewards, such as promotional offers, can erode the intrinsic motivation underlying consumer intent. Here's the top-line on one recent study.


So the risk is that by "buying consumer interest" as demonstrated by a click-through response to a sales promotion offer, marketers may actually demean the value of the brand in the eyes of consumers. It is vital that the entirety of consumer brand response be modeled and measured, and not just the click-through rates.

Advertising should always have a well-conceived communication strategy that is based on a leverageable consumer insight. It also helps to have a Big Idea based on the strategy.

Of course direct response methods are critical to success, but scattered testing of discount offers to promote click-through rates can erode the brand's vital value proposition.

Data mining should always take place in the context of smart strategic thinking. Said another way, you don't have a science unless you are testing a theory. Here's a link to more on the study shown in the chart.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Valuation of FaceBook

There is a lot of discussion about the valuation of social networking companies such as FaceBook and Twitter.

Sky Technologies, the Russian IT investment organization, just purchased almost two percent of FaceBook. This translates to a $10 billion valuation for FaceBook.

The preferred stock acquired by Sky Technologies confers special rights and so maybe $10 billion is an over-estimate. But various sources have speculated on the valuation and contrasted this most recent purchase to the earlier investment in FaceBook made by Microsoft.

It is important to recognize that the most valuable commodity on Earth is attention. So an alternative valuation approach might start with that foundational perspective.

Today Facebook reports that it has “over 200 million” active users on a world-wide basis. The Nielsen Online chart gives the latest on the size of the FaceBook audience within the United States.


In April, there were 53.8 million active FaceBook users in the United States. This amounts to 34.8 percent reach of active Internet users in the US and 17.5 reach of the total US population.

The United States audience for FaceBook averaged about 2 and a-half hours on the site in April. This amounts to about 5 minutes per day.

Coming back to attention as the most valuable of commodities, it is within this 5-minute average daily window that the valuation of the company must make sense.

And, looking at it a slightly different way, the $10 billion evaluation equates to $50 per each member of the currently active audience for FaceBook. So it is within those 200 million five-minute daily “attention structures” that the advertising model will have to pay out for FaceBook. It is an intriguing challenge for sure.

For more perspective on the Psychology of Advertising, please see Advertising and the Arc of History.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Global Internet Use Down in April

Nielsen Online provides helpful information each month on how the online world is growing and changing. One of their most interesting charts shows global use of the Internet.

Today they up-dated the chart to show growth through April.


Interestingly, you can see that growth eased somewhat in April. The number of online sessions, domains visited, web pages per person per month, all declined somewhat. The active digital universe was also down about a percentage point for April.

This may reflect global economic conditions. People may be spending less on Internet access time, or they might be deciding to use their time differently for various reasons. Up-dated survey research could help uncover changing perceptions of time use and motivations.

Here's the link to Nielsen Online. You can follow their monthly chart on global Internet use, as well as charts showing some country-specific information on the most popular parent domain names, such as Google, Yahoo!, and FaceBook.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Nearly half the US population uses social media every week

Yesterday Knowledge Networks released results of an online panel survey of the marketing impact of social networks.

The company reported that while 47 percent of the "full U.S. population" uses social media on a weekly basis, less than 5 percent say they turn to social media sites for guidance on purchase decisions.

Of course people turn to social media for social purposes. The question is, "What happens when they get there?"

Over 100 years of survey research have well documented that people turn to their friends first for the most credible information about what they should buy. This underscores the importance of interpersonal communication, including social media.

So, the important finding of the study is the 47 percent figure for weekly use of social media. The company also reported that 34 percent said they used these media more often then they did a year ago, while 18 percent said they used them less.

The bottom line really is not changed by this study. Organizations that do not productively embrace social media will fall behind competitors that do.

My earlier post today shows one way McDonald's is doing it.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Co-Op the Photo-Op

Summer vacations are underway, and that means plenty of photo and video sharing on social media.

Here, a mother takes her daughter's photo in front of the McDonald's animated outdoor display in Piccadilly Circus, London. The Charlie Chaplin hat is being shown at the moment, but the display will quickly change to many others.


The daughter sees herself appearing to wear the hat and smiles.


Doubtless that photo, and those of thousands of other tourists will be shared via Flickr, FaceBook, Myspace, YouTube, or even Twitter.


Here's the McDonald's viral video promoting photo and video sharing.



This demonstrates the inextricable link between mass communication and interpersonal communication. Clearly all of these people are "Lovin' It" and "sharing it" with McDonald's.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Difference in Detail

"From the assembly line to the road" is a familiar story line for automotive advertising.

Yet this new commercial from Ford shows how details can convey a strategic message in a fresh and confidence inspiring manner.



The precision of the Mission Impossible inspired assembly, the breath of life to install the air bag, and the brand reveal as the car emerges from its protective bath, all these details work to evoke an emotional response of confidence in the car.

The kiss to the brand mark seems a fitting transition to the road scenes.


The commercial was done by JWT Shanghai.

Copyright © 2009 by John Eighmey. All Rights Reserved.

Sense of Purpose

Brand loyalty is ultimately based on core values shared between the brand and its followers. In this commercial for Calvo tuna every step along with way is infused with a sense of purpose.



Indeed, the music has a percussive flamenco insistence. This commercial asks for the order in every frame.

The commercial was done by Publicis España, the Madrid agency.

Copyright © 2009 by John Eighmey. All Rights Reserved.