Its a question worth asking and the subject of my chat on the Internet economy on Friday, January 15, 2010.

Brand stewardship/ custodianship has traditionally been a space that has been claimed by the advertising agency, althjough we are seldom in a conversation in digital circles that we don’t hear the view that the “agencies just don’t get it”  so if they dont who does. Are the digital agencies ready to lead the brand?

My fellow “The Beancast” panel member Ana Adejelic wrote about this in Advertising Age and was ridiculed by both agency and digital groups. In her view digital are in exploratory mode and ad agencies focused on exploiting a tried and tested approach, in essence this means digital will shoot the lights out but generally cant be trusted with the whole brand, whereas the ad agency are so locked replicating a “safe” formula that they have forgotten whats good for the brand.

Traditional agencies and marketers are stuck in a marketing model which is hopelessly out of date, it is based on the idea that homogeneous groups of consumers exist which are called target markets, and that loyalty can be built in these groups by repeatedly interrupting them with brand messages until they listen and when they do they will believe what they see and read.

Digital agencies are often built around the concept of search engine marketing and the techniques of SEO. They drive the “direct marketing” concepts of measurability and conversions, turning interaction into sales.

Is either of them right?

The Internet has been alive for years with the view that Advertising is dead, and more and more we are hearing the view that SEO is dead. In the words of Mark Twain in both cases “The report of my death has been grossly exaggerated” although in both these cases there is a whole lot of truth tied up in those reports.

Lets propose a different set of views:

• The Internet is essentially a social creation.
• The Internet is not another marketing medium as little as a discussion around the braai (BBQ) is a marketing medium.
• The internet is not only about analytics and conversions – about OBSERVATION, it needs also to about a UNDERSTANDING of how people behave.
• The real strength of the Internet is that it connects people.
• Brands are created by the experience that customers have.
• Because of the network of connections ideas (good and bad) can spread faster than ever was possible before.
• There is too much information around and customers have too little time.
• People don’t believe advertising, they are starting to not even search in the way they did. They ask their friends. (Real time search)
• If it’s important,information will find me.
• The power in the transaction has shifted, brands are no longer the only source of information.

These thoughts fundamentally change the way we think about brands, branding and marketing.

New marketing is essentially understanding that the game has changed, that the connection created by the internet, however it is accessed, by computer or mobile phone has fundamentally changed the way that society operates in a way that will never be rolled back. Because brands no longer have control of the information that customers can access. Brands will be built in new and different ways. They will use all the traditional tools but in a totally different way. Brands will be built by experiences and interactions.

Modern marketing was only invented in the 60s to understand the use of the most important communications tools of the era. The character of the new tools are fundamentally different. Although paradoxically when we read the early ad men it seems they got it.

Marketing has always been about making stuff and creating experiences that people want, making it available to them and getting them to talk about it. Branding in the final analysis is what people believe about stuff, what they talk about.

Ad agencies don’t get it and will never get it because the agency model and the way they work does not fit the social interaction model; agencies were invented to solve a different problem and to use one way communications channels. The new boys, digital agencies will battle as the Internet becomes more and more a way to connect ideas and people and less like a catalogue, a searchable database and so the role of the search engine changes dramatically.

Brands are built around storytelling, there is a legend that surrounds every brand, that story was being told by brands about themselves, now the story is being told by customers, about their experiences. Customers who have the ability to connect to anyone, anywhere, now have the capacity to share and collaborate on a scale never before thought possible, to share and spread ideas and stories around the world almost instantaneously.

Although the fundamentals of marketing have not changed, because customers have the approach also needs to. Brands are still important and marketing now becomes more than just a box on the organogram, it becomes the entire business as seen from the point of view of the customer who don’t care where they interact with the brand as its all part of the same experience, an experience they tell their friends about.

The story that becomes the brand.

I see a totally new type of agency, one that understands the new customer that will guide its clients through the process of building the customers total experience and of engagement. An agency that has a fundamental understanding of how people buy, of all the communications channels and how to use them not to attempt to overpower customers into brand loyalty but assist them to spread the idea. The idea that is the brand.

This is part of the vision behind PiKE | The New Marketing Agency

Listen to what we spoke about Podcast Link Here

Its an interesting anaylsis, but really it sees social media really very much through an advertisisng lens. Social media is really about conversations not promotion. This quote kind of sums it up:

Businesses who jump into the conversation and broadcast a message but fail to interact are failing miserably at the art of marketing within social media. It is important to realize the potential of what David Armano calls micro-interactions where you the brand are responding only after you have listened to what your customers are communicating.Kyle Lacy, Social Media – Indianapolis, May 2009

photo credit: Glen Bowman

I am sitting on the plane on the way from Cape Town to Lanseria. Just completed a grueling round of speaking engagements.

I was struck by a number of things.

Firstly. That many of our “trainee communications experts have no clue of digital. I find it extraordinary that I could actually find only 3 bloggers and one twitter member in a third year advertising and communications class (marketers, art directors, copywriters and designers.)

We really need to push awareness with them. You have to understand the space to be able to advise others.

Secondly. That there are two distinct approaches to online marketing. The technology approach approaches it from the point of view of teh available technologies and how to deploy them. The interruption marketing POV that sees it from the traditional marketing and advertising point of view. how to use the channel to push marketing messages.

Then the third group who are in the distinct majority. The communicators who really understand the effects of the technology on society and how that is changing how they interact and need to be interacted with.

Finally at the mobile marketing conference it struck me how both of these approaches affected how people thought about one of the most important windows on the internet namely Mobile, Its impossible to think that a mobile network like MXIT which carries 330 million IM messages a day can not be regarded as the most important channel to reach 16 – 25 year olds in South Africa. Mxit boasts 12 million members growing at a rate of 12 000 a day. Extraordinary.

What I learned is that the digital reality is slowly dawning though and for the mobile marketing workshop to be oversubscribed double is a good indication of that. Maybe most in the room were already converts but so what, they want to touch the space – they become missionaries.