Marketing Face-Off: A Perspective on 2006

Paralleling the efforts of the National Hockey League to revitalize its league, brand marketers took a shot at a number of innovative approaches in 2005, ranging from branded entertainment to blogs, from alternate-reality games to consumer-created content.

While the lasting effect of these changes may not be clear for some time, 2006 will definitely be the year of the marketing face-off, as traditionalists hold on to the tried-and-true while innovators continue to shout “change or die.”

The year was one of experimentation for a few courageous marketers. Big TV buyers hedged their bets against commercial-zapping DVRs by shifting traditional ad dollars into product placement and so-called branded-entertainment properties. Even modest-budgeted brands such as Lamborghini (an episode of “The Apprentice” earlier this year) and Marquis Jets (also “The Apprentice”) raced into the product-placement arena.

Others tapped into the blogging phenomena, creating their own blogs and advertising on others. Alternate-reality games such as “I Love Bees” for Microsoft’s Halo 2 game and Audi’s “Art of the Heist” generated big buzz among marketers and consumers alike. And consumer-created content, like the Converse Gallery, a Website showing 24-second films submitted by consumers, became all the rage, as pundits suggested that marketers needed to relinquish control of their brands to their customers.

Here are some of the tactics marketers will be taking in 2006:

“Brand Democratization”
More marketers will find ways to involve the consumer in their marketing efforts, with those who move in unexpected directions the ultimate winners. Copycats of the Converse Gallery, for instance, will attract shrinking audiences, as had those who tried, and failed, to replicate the success of BMW Films, in which the car manufacturer aired online short films shot exclusively for the brand by top-name directors.

Blogs Standardized, Corporate Blogs Boom
Expect blogs to be standard items in the marketer’s playbook. Corporate blogs will continue to proliferate, some earning kudos for honesty and informative nature, others ignored as obvious, homogenized propaganda. Content blogs (check out AfterHoursCity.com for an example) will deliver “street cred” to marketers smart enough to underwrite relevant editorial and brave enough to let consumer-generated content run unfiltered.

Games for Grownups
Online gaming will continue to grow as a marketing tool, and for good reason. A well-crafted game can attract a sizable audience to spend quality time with a brand without incremental marketing support. The Nitrix game on Panasonic’s Website, for instance, continues to draw more than 50,000 players a month even though Panasonic has never promoted it. Expect to see business-to-business marketers take a second look at online games, using them as action-packed “edutainment” for clients, prospects, and even internal sales teams.

Newest Job Title: “Blog Monitor”
“Blog monitor” will be the newest job in corporate communications as marketers try to keep up with positive and negative marketplace buzz. Dell found out the hard way the importance of this role as Jeff Jarvis’s Buzz Machine shamed it into replacing his now-infamous malfunctioning computer. Consumer blogs will continue to multiply as mobile devices such as Sony‘s AIBO and Nokia‘s Lifeblog support blogging on the fly. Blog networks such as Weblogs will make it easier for marketers to advertise on blogs, especially those that attract consistent audiences with quality writing.

Podcasting: Overhyped Again
Perhaps the most overhyped medium of 2005, podcasting will continue to be overhyped in 2006. Even with the arrival of the new video-enabled Apple iPod, podcasting as an advertising vehicle will be a shard of ice on a melting glacier. Nonetheless, expect every network to rush out “vodcasts” (my term for video podcasts) of their hit TV programs. Though the initial plan by Apple iPodABC is to sell “Desperate Housewives” episodes for $1.99 each, you can expect the networks to negotiate sponsor deals real soon. Left out of this discussion is the questionable desirability of watching video on a two-inch screen. Americans bought 6 million HD-enabled TVs in 2005, raising the installed base to 16 million, so it’s hard to imagine them forsaking the entertainment center of their dreams for a tiny peak at Eva Longoria’s curvaceous…hair. Of course, all bets are off if pornographers figure out a way to circumvent Steve Jobs’s proprietary licensed electronic code.

Social Networking, Ready for Prime Time
Social networking, on the other hand, deserves some of the hype it received in 2005 and will blossom into an important part of 2006 online marketing plans. MySpace.com has attracted more than 36 million avid users in less than two years; FaceBook.com has taken college campuses by storm, with millions on board and the high-school edition gaining steam. Business networks such as Plaxo and LinkedIn have close to 9 million users all told. With all these communities reaching critical mass, the challenge for marketers will be to find ways to get beyond the banner and ingratiate themselves with the target. Tickle, one of the largest social networking sites, with more than 16 million registered users across its network, embeds advertising into its quizzes, allowing advertisers to engage the consumer without making him leave the site.

Web-based Apps
New technologies will offer marketers the chance to score on the desktop in 2006. Not since the heady days of PointCast have there been so many promising Web-based applications that could give marketers ongoing access to personal computers. Google’s Gmail, with its superior interface and huge storage capacity, is already getting marketers front and center. Look for marketers to try to replicate Southwest’s custom application, Ding!, which not only placed the low-cost carrier on the desktop of millions of loyal customers but also allowed the airline to move otherwise empty seats in minutes.

Reality-Show Fatigue
First, it is a simple case of too many players. Did America really need another version of “The Apprentice”? Second, as these shows have gotten better at integrating ads into the content, consumers are beginning to consider these shows as long-form infomercials. This is a scary harbinger for branded entertainment in general, as the potential for a consumer backlash looms on the horizon. So while we expect one or two new reality shows to enjoy at least introductory success in 2006, TV fans can only hope that networks rediscover the joys of well-written comedies such as “My Name is Earl” and dramas such as “Medium.”

The Big vs. Small Agency Face-Off
Expect a major face-off between the nimble “idea” agencies and mediacentric giants. Mother, Strawberry Frog, Renegade Marketing (my own agency, if I may be so bold), and the Wayne Gretzky of idea agencies, Crispin Porter + Bogusky, are among a handful building a reputation for delivering channel-neutral multidisciplined campaigns. In the past few months alone, smaller agencies have delivered stinging slaps to the biggies, stealing away such prestigious accounts as Heineken, Volkswagen, Sprite, and British Airways.

And while these shifts are noteworthy, we anticipate an even bigger shift in how clients approach agencies in 2006. Big clients are already starting to see the benefits of multiple marketing partners, asking each for “media neutral” ideas. Could it be long before clients designate one to be their “idea agency?”

This firm would be tasked with coming up with media- and channel-neutral ideas while single-discipline agencies would be tasked with execution according to their specialty. As the president of an idea agency, I can assure you that 2006 is like an ice rink after the Zamboni cleans it, wide-open with possibilities and fraught with slippery challenges–so don’t forget to sharpen your skates.

Drew Neisser is CEO of Renegade Marketing Group, a New York-based guerilla agency that works with consumer and business-to-business clients, including Panasonic, HSBC, the New York Jets, DoubleClick, and “TV Guide.”