The average tenure for CMOs has doubled to 48 months in the last ten years. It’s no surprise considering that cost of consumer attention has risen seven-to-nine fold during the same period of time. However, implementing influencer marketing can help CMOs develop a Blue Ocean Strategy with a Lean Advertising Methodology at it’s core.
As the Microsoft Corp study pointed out, “No longer can we (consumers) boast 12 seconds of coherent thought (less than a goldfish).”
We live in a world where turning to our smartphones for tasks is a natural condition – to text a friend, to check Instagram, to find a car, to check a price (consumer funnel is dead).
But CMOs can use this dynamic to their advantage and offset the rising costs to achieve eight seconds of our attention.
CREATE A BLUE OCEAN STRATEGY
For starters, they must shift the paradigm and make marketing a vital operating function within their organization. As CMO Beth Comstok demonstrated at GE, marketing must become a source of innovation whose efforts are as creative and valuable as the products coming out of R&D.
Sadly, most brands (and their CMOs) are stuck in a Red Ocean strategy, racing to beat the competition by building a defensible position within the existing industry order. Few brands like GE have embraced the “blue ocean” opportunity of acquiring non-customers on emerging networks like Instagram. I’m still amazed by the number of executives who don’t have an Instagram account.
CMOs must focus on value innovation, which is the alignment of innovation with utility, price, and cost positions. Influencer marketing helps brands execute this strategy by pursuing a new segment of consumers using media costs (compared to TV, print, and digital display) simultaneously.
LEAN ADVERTISING METHODOLOGY
I often recommend brands of all sizes follow the template that GE or Coke executes with amazing success. But these examples are consistently met with rebuttals, such as, “But we’re not Coke,” and “We don’t have their war chest of resources.” You don’t need their war chest to execute a similar influencer marketing strategy.
For example, a brand can implement the Lean Advertising Methodology using Instagram advertising by influencers to outsource content creation and media distribution. It’s the only media option that allows brands to collapse the cost of content creation and media distribution while scaling and simultaneously market testing their message with potential consumers. Thales S. Teixiera provided an excellent overview of this approach in the Harvard Business Review.
Coke’s Wendy Clark detailed aspects of Coke’s strategy – content, scale, spread in real-time, with or without us. Core to Coke’s strategy is a readily accepted approach called the “70-20-10 rule.” Seventy percent of a brand’s marketing investment focuses on programs that have proven successful. Twenty percent of a brand’s investment targets emerging trends, such as emojis and mobile messaging. The remaining 10 percent gambles on “untested” programs with minimal traction.
INSTAGRAM ADVERTISING: SCALE CONTENT CREATION AND MEDIA DISTRIBUTION
Here’s the rub; many CMOs still consider influencer marketing in the 20 percent bucket (emerging trend), or worse. But this is not the case for brands in the middle-to-lower end of the market.
These brands must adopt lean methods to compete with the Fortune 100 brands. For example, @MarkandEstel recently shared with us that Instagram advertising was quickly becoming the most valuable medium available to them. Why? They are able to remove the cost of marketing agencies or standard media costs e.g. TV :30 inventory and substitute it with an army of influencers that produce content and promote their brand.
All of this is done with a team of two – not the Coke empire.
To learn how you can expand upon your influencer marketing strategy, contact Fullbottle today for more information!