I decided to put together a list of reasons why I think many marketing agencies “don’t get” social media. Some are legitimate reasons, most aren’t. Feel free to add some of your own.

1- Elitism

The marketing industries - advertising, PR - are considered to be ‘cool’ or chic. These industries (including social media by the way) are filled with people who are self-consciously aware of this. For years I’ve been on online forums filled with ad people trashing the industry, talking about the lack of creative talent the whole time positioning themselves as being above it all.

Enter social media and its marketing aspects and these self-important types have something else to look down upon. If that attitude is prevelant in an agency, then it means you’ve got an agency that’s closed off to innovation.

2- Lack of Vision

An agency gets an RFP for a major client. They have meetings to brainstorm. How to position the brand. What creative they should use. Where they should make placements. Do we look to bring in a spokesperson? What strategies, what tactics?

And the whole time, social media didn’t enter their mindset.

That may be because they’re too rushed to give their response to the RFP and, because they haven’t had the time to learn much about social media. When it comes crunch time, it never occurs to them to do something with social media.

3- Lack of Interest

A couple of years ago I contacted a mid-size ad agency to see if they were going to incorporate any type of online marketing capabiliites. They had no interest in it. It was more than a lack of vision. It was simply put, a fundamental lack of interest of what was happening around them

4- Unable to figure out the revenue model

This is an underrated and compelling reason. I don’t believe as some doom sayers do that advertising is on its way out. But it is changing and some of these new business models involve little revenue. If you’ve to a lot of overhead and a project comes in that could mean little revenue, you’re going to be flummoxed and scared shitless of this.

5- Terrified of Technology

Often, people in agencies play the “he’s a tech guy” routine. Cordoning off those who do online stuff as a whole as tech people. And tech people usually aren’t marketing types. So by placing that label on it, ad types both partially remove internet marketers from the decision making pro and set up a situation where they don’t have to deal with technology - and the unknown.

6- They undervalue what it takes to establish a capability

Other times I’ve talked to agencies that it seems they want to hire someone “young” and not pay them much and “teach” them about online marketing, even though those that teach no little of what they speak. Developing an online capability is viewed as a cost, not an opportunity and the idea then is to go as cheaply as possible.

7- Methodologies are still being developed

Yes, this is true. The field is very new and, while there have been many successes, the constantly changing nature of social media - blogs, social networks, microblogs, online video, is often in a flux. Methodologies have to play catch up.

8- Social media is largely unproven

No, this is not heresy. It’s the truth, plain and simple. It’s an emerging field and, while social media usage is growing phenomenally, it’s growing in many different directions. Each time it grow, new lessons have to be applied to new strategies.

9- Too much hype from social media strategists

“Engage or die”. “The customer is in control of the brand”. Overblown statements by ‘visionaries’ that usually aren’t true and turn off traditional marketers. Statements like that seem to be directed at other social media strategists where it becomes part of the echo chamber. Not everyone had to ‘engage’ and not everyone will die if they fail to do so.

Two articles caught my eye earlier this week.

One was an AdAge article entitled “So Much for Engagement; Buys Are Still Based on Eyes”. It talked about a recent study by Advertiser Perceptions. Marketers and media buyers are looking to spend more and more dollars online. That’s because their first and foremost metric is reach - and that’s were people are going today. Online. But they see it more as a results oriented medium and are not doing it for engagement purposes as they don’t perceive that the online is good for engagement. This study was based on a survey of 2047 marketers and their media buyers.

The second one was a press release of a report put out by the Chief Marketing Officer (CMO) Council. It described how measurable ROI is becoming an increasingly important factor for marketers as they transform dollars online. Accountabilty is of prime importance as marketers look to measure the value of the programs they’ve created and the investments they’ve made. A result of this trend in 2007 was the relative high turnover of the agencies used - ad, web design, and PR - to carry out these programs. The reasons for the severing of relationships was often tied into “lack of innovation” and “no value-added thinking”. Hmm…

Read more…

I have subscribed to XM Radio for the last couple years and have been quite pleased and even more amused as to how advertising and product placement have worked on a nationwide medium, satellite radio.

“The top executives at the nation’s two satellite radio companies detailed pricing plans Monday that they said would let customers choose which channels they want to receive if the two firms are combined.” Via Newsday

Now, it will be interesting to see how XM and Sirius deal with both channel subscriptions and advertiser accounts.