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.