E-branding: A new approach to an old idea of marketing
E-branding: A new approach to an old idea of marketing
By Vishnu K. Mahmud
JAKARTA (JP): I have always been a sucker for contests. Win a
house in the Bahamas, a new car with all the trimmings, or a
turbo-charged entertainment center complete with big screen TV
and the complimentary movie attendant...!
While I was in the U.S., I entered countless sweepstakes and
quizzes in the hope of at least winning a mouse pad. Alas, to no
avail. But it wasn't until I joined the Internet Revolution did I
realize the true nature of the sponsors' motives behind these
contests: branding and data mining.
Branding is a tool in the ancient art of marketing. It is a
message for potential consumers and clients that identifies a
particular product or brand. Successful brands have become
synonymous with the actual merchandise themselves.
A walkman? It's a Sony! Quality service on an airline? Come
fly the friendly skies with Thai International. The biggest
bookstore in the world? Amazon.com.
Data mining is essentially the creation of a database of
patrons (and prospective customers) that can be targeted by
companies. A good list of loyal customers is worth its weight in
gold.
For example, Amazon has a database of over 10 million people
who shop on their website. I purchased a Tom Clancy book a while
back and Amazon emailed me to see if I was interested in a new
author who also writes techno-thrillers. Had Amazon not targeted
me, I would never have known about Matt Reilly, the Australian
author of Ice Station and Temple (which was spectacularly
gripping!).
Of course, it was in Amazon's interest to inform me. They do
sell books after all.
Where does the Internet come in? Since the boom of the
Information Superhighway, companies have been clamoring to get
online in an effort to boost sales, revenues and market share.
Since the web is the all-great equalizer, small companies can
brand themselves efficiently and with less expense in order to
compete against the big boys.
Just look at Internet auction giant e-Bay compared to the
established Sotheby's of London. e-Bay has a much larger mind
share (more people know about them than other auction sites or
even Sotheby's), as well as market capitalization (in the
billions!).
Data mining is made easier because Internet users can sign up
for free products or services and impart a little information
about themselves. Do they like outdoor activities? Interested in
motorcycles? Perhaps they may be interested in a new
revolutionary bike glove?
Some companies try to brand their product (or spread the
message) via Spam or banner ads. True, you can count the number
of times the ad is accessed (via the number of times the webpage
is visited by users) and see who replied to your Spam, but you
will never get an interactive reaction from users.
In fact, banner ads and Spam tend to be ignored by a majority
of people unless it really interests them at that particular
time. How many of you can actually remember an interesting banner
ad (apart from the annoying "Punch the Monkey") that will prompt
you to click to find out more information?
Two of Indonesia's top Internet portals currently provide an
excellent example of e-branding. Astaga.com and Detik.com are
currently promoting the Clear Top 10 awards, from the popular TV
show of the same name.
It offers cash prizes along with an Apple I-Book to entice
users to sign up and vote for their favorite music video as well
as answer a few questions about hair, product knowledge and other
shampoo brands they are aware of. Unlike other free web services,
participants are motivated to enter their correct data (as
opposed to using a pseudonym and a false address) as it is
required to collect the prize, should they win.
Most Internet sites post their privacy policies about data
mining and will offer users the option to be contacted for any
upcoming events. After all, it is in the interest of both parties
that the information is used appropriately.
Make no mistake, e-branding is but one part of the marketing
process.
As shown with the Clear Top 10 Awards, the contest is held in
conjunction with traditional media (the TV show, teen magazines
and radio) to achieve maximum exposure and effect.
An e-branding program alone can only do so much, while an
effective annual marketing campaign using all media would reward
the prepared mind. Astaga and Detik are ideal Internet mediums
since they both reach a majority of Indonesian Internet users.
Interactive branding is also conducted on radio. As an avid
listener to Elshinta, Jakarta's 24-hour radio station, I
frequently hear a radio contest sponsored by a major bank. To
participate, the caller must immediately state the "password",
usually the trademark or jingle of the bank in question.
After successfully passing the first hurdle, the caller is
then asked a question about the service features of the sponsor
(in this case, the bank) in order to win the Rp 100.000 (US$11)
prize.
Does it work? Well, listeners tend to pay more attention to
contests than radio advertisements, as I shamefully admit to
knowing the contest password by heart (in addition to the various
features and services of the contest sponsor!).
The writer is an IT consultant based in Jakarta. Questions?
Contact Vishnu at vmahmud@id.mweb.com.