Rich Karpinski just wrote an article that’s featured on the front page of BtoB. The information in the article is basic. It’s not groundbreaking. It’s about a trend that, if you’re reading this blog, then you’re already familiar with. It’s about how businesses are now embracing blogging.

Karpinski points out how only aroudn 12% of Fortune 500 companies run corporate blogs. But he gives key examples of how companies such as Dell, Kodak, Intel, SAP, and IBM run coporate blogs.

The reason articles such as this can be important is because it is located in a targeted business publication. It’s readers, many of whom are at he very least involved in corporate markting at some sort of senior level, need to be exposed to more articles such as this. Larger publications such as Business Week feature similar articles that carry influence.

The more exposure senior managers - be they in marketing or technology or finance - get exposed to blogging and, more importantly overall, social media as a business cultural paradigm, then the more likely they are finally going to “get it”.

Articles such as these are a form of professional-word-of-mouth. Many of the decision makers - those that are in the 88% of the Fortune 500 that don’t have corporate blogs aren’t going to be reading social media marketing blogs. Many of them haven’t heard of Todd And’s PowerList or the Age of Conversation or ooVoo. They’re not on Twitter. They don’t care about any of that. And there’s enough of them out there that that’s fine…for now.

So that’s why wee need more basic articles like Rick Karpinski’s.

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.

Last night on Twitter, Greg Verdino left the following twit:

“i was trying to explain stumbleupon to my wife and said, “it’s like digg” - she had no idea what i was talking about. reality check people.”

Yep.  A couple of months ago I asked a group of 20 somethings if they had ever heard of Twitter.  All I got was blank stares.

I bet if you took a national survey of people, say, under 60, and asked them if they’ve ever heard of Twitter, Digg, Jiaku, Pownce, Mark Zuckerberg, de.licio.us, Hulu, the social graph, Gawker, BoingBoing, Jason Calacanis, technorati, bacn, or Ning, the overwhelming amount would not have heard of most or even any of the above, they would have no idea what you were talking about and you’d be greeted by blank stares. Read more…

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…

This is a follow up on my last Post about Otto, but this time in English!

Before I start complaining again, I will give you a brief summary of my last post.

The “Otto Versand” is the major German Mail-Order Company. But once again there is a huge gap between American and European Online Business. I guess Otto hasn’t realized the importance of the Internet yet. They still focus on rural stay-at-home Mums who order by old-school mail and this is supported by their Online Marketing practices. They use long cryptic URL s on their Web Pages, have no innovative Affiliate Programs like the “Amazon Wishlist,” and when you try to Google them, you have to assume that they have never heard of search engine optimization (SEO). Otto operates the second largest market in the world, but their web appearance is from ages ago!

Those were my thoughts two months ago and, to be honest, not a lot has changed in the meantime! The URLs are still cryptic, there is no new Affiliate Program, and the one they still use doesn’t have a good reputation at all! However, all of a sudden they do appear in Google’s top search results about nearly any consumer good! Bravo!

Listen up Otto, this was a start, but if you want to catch up, there is a lot of work that needs to be done! Go Otto Go!