06/28/2005

Viral Marketing Needs Tweens

For those of you who have never heard of viral marketing, it is a relatively new technique that marketers have spent the last decade perfecting.

Essentially, it consists of person-to-person ‘grassroots’ campaigns that rely on the consumer to spread the word about a given product to other consumers to create a more legitimate buzz about a particular product. This technique is critical today as many tweens have grown sceptical about the direct techniques and practices commonly used to advertise to them.

According Juliet Schor in her book ‘Born to Buy’ there are five components for a successful buzz marketing campaign which include:

1. Authenticity – Staying true to the brand
2. Advocacy – The consumer plays a direct role in advocating the product to other consumers
3. Experiential Messaging – Where the company often gives the product to the buzz agent or consumer advocate so they are more sincere when they talk about the product to others
4. Fusion of Strategies – Combination of a viral marketing strategy is typically complimented with a public relations campaign
5. Visibility and Virality – Done through a number of overt and covert actions

If the viral marketing campaign sounds elaborate that’s because it is. Perhaps the most important thing to pay attention to is that tweens are being asked to sell products and gain valuable information directly from their friends in covert manners.

For example, Schor talks about the successful “Slumber Party in a Box” put together by Girls Intelligence Agency, a buzz marketing agency. Tween girls who decide to join their “Best Friends Forever” (BFF) network are given products to discuss among their friends during the evening. The GIA agent is given the special task of recording what is said about the product and then reports back to the agency; creating a very intimate focus group and means of disseminating information about any given product at the party. GIA boasts that they can reach up to 20Million girls nation wide and their clients range from Disney to Warner Brothers to Mattel.

Another powerful player in the field of viral marketing is BzzAgent. This company was started by Dave Balter who is also the founding member of WOMMA, the “Word-of-Mouth Marketing Agency”. It involves a very elaborate network of bzz agents that chose various bzz campaigns they are interested in promoting among their friends. In exchange agents get rewarded points that they can use to trade in for any number of items that have been donated to BzzAgent by corporations. In fact, even the very nature of choosing the free items for ones hard work is part of the market research to gauge popularity of products among the agents.

Viral Marketing is only getting perfected. it is important to understand this new practice to see just how cheaply tweens are being sold off to sell out their friends.

05/02/2005

Pay Now or Punish Later?

Below is a quote written by Susan George that was quoted by Henry Giroux at the Engaging Interpretation lecture series at Emily Carr last week.

"In 1945 or 1950, if you had seriously proposed any of the ideas and policies in today's standard neo-liberal toolkit, you would have been laughed off the stage or sent off to the insane asylum... the idea that the market should be allowed to make major social and political decisions, the idea that the State should voluntarily reduce its role in the economy, or that corporations should be given total freedom that trade unions should be curbed and citizens given much less rather than more social protection -- such ideas were utterly foreign to the spirit of the time. Even if someone actually agreed with these ideas, he or she would have hesitated to take such a position in pubic and would have had a hard time finding an audience."

I find this quote extremely provocative. Just how are notions of privitizations and market control so normalized in our society? And just how far will this go? While it is impossible to compare Canada to the United States it would be naive to dismiss the increasing support of the neoliberal agenda in our own backyard. This agenda really hit home when I attended a forum on the Commercialism of Schools on Saturday.

When it comes to public education, I think we should all be paying attention. With increased reliance on corporate donors it is no longer uncommon to have your grade 3 son or daughter come home singing the theme song of Home Depot (which they learned at school on your tax dollar) and wearing their corporate logo on their shirt because they paid for the playground at your child's elementary school. As was the case in North Vancouver last year. Nor is it uncommon to have corporations trying to dictate what should or should not be included in teachers' curriculum - as was the case for the Vancouver School Board who received a letter from McDonalds urging them not to allow the film Super Size Me be shown in classrooms. However, corporatization of education does not just extend to product placement or direct marketing to students it is also occurring at higher levels of government.

The BC government is a strong believer in the neoliberal credo which dictates that the market knows best. In 2002, the Provincial Liberal government took a good swing at publicly funded education and agreed on an amendment to the School Act in Bill 34. The result, public schools in BC are now allowed to incorporate themselves into School District Business Companies. Thus, School districts can now become 'entrepreneurs' and set up ventures in order to bring their schools additional income; such as the establishment of offshore private schools in China. While this may sound innocent, many critics warn that this approach is only going to increase the division between the have and have not districts who are now being left with the responsibility of financing themselves, with less and less government support.

Another new revenue tactic being deployed by the BC liberal government is the foreign student. Foreign students now make up 7% o BC's public system's operating budget. Like in post secondary institutions, foreign students must pay tuition to attend public schools, which is usually around $10,000. Between 2000–01 and 2001–02, the number of international students jumped from 2,947 to 4,035 which resulted in a net gain of in roughly $40 million. The result, school districts are now competing for these students creating a large gap between districts that can afford to attract students and those that cannot. What's more, many of these students have very low levels of English comprehension, which has a direct impact on the classroom, particularly as many of the ESL positions no longer exist due to the Liberal's 20% budget cut from Education. Read more here.

While it is hard to believe that this is really happening we must take a long look at ourselves and ask a very serious question - is this the best our kids deserve? How can we expect our kids to be critically engaged and active citizens when they are amidst such strong contradictions that are actively encouraged by our own apathy and compliance? We must lose our ephemeral perspectives that never extend beyond the immediate moment in question and start asking ourselves serious questions. Perhaps the most important, says COPE School Board Trustee, Kevin Milsip, "is do we want to pay now or punish them later..."

Here are some links:
School ADS Alert
BC Teachers Federation

04/19/2005

Age Compression - Tweenfluence

Ever heard of age compression? The first time I encountered this term was on a CBC documentary called “Buying Into Sexy’. After doing a bit of research I learned that this term began to circulate among toy manufacturers to explain a recent phenomenon that is leaving Barbie in the closet and Bratz in the lime light.

Put simply, age compression is "pushing adult products and teen attitude on younger and younger kids". This phenomenon has left the toy industry scrambling as the new peak age for playing with dolls and toys is just 8 years old. Kids are no longer kids, they are tweens and they are growing up fast. Marketers have already figured this out and they have spared no expense advertising directly to this demographic with over 1.2 Billion dollars spent last year on advertising to this valuable demographic.

David Siegel, author of the “The Great Tween Buying Machine” writes:

"Tweens are an extremely profitable consumer segment. The size, spending power, needs and target ability of this group presents a serious financial opportunity to today’s marketers.”

What's the result? Tweens are now in the driver seat and marketers are targeting them directly for a whole number of products... products that were traditionally marketed uniquely to mom and dad.

Below is a study I came across that I thought some of you might find interesting, put out by a Canadian marketing agency called Youthography:

medium_chart1.jpg
Young Canadians' ascendant influence on household spending over the past generation has made many companies, across an increasing array of categories, start to change the focus of their marketing strategies - from the “gatekeeper” (mom, dad, primary care-givers) to the “gatecrasher” (the youth in the household who increasingly tend to call a lot of the shots when it comes to purchase decisions).

As expected, young people feel they exert significant influence on food purchases such as chips and salty snacks, soft drinks and other non-alcoholic beverages as well as take-out or delivery foods; they've been highly regarded experts in these fields for time immemorial.

However, take a look at the influence teens (and even some tweens) have on larger ticket items; two-thirds of our teen respondents feel they wield power on the home front when it comes to computer purchases while 6 in 10 feel they can sway home electronics purchases. Mom and/or Dad continue to have troubles programming the “whatchamacallit” and, as we become an increasingly gizmo-focused culture, are turning more and more to their younger, faster and more gizmo-friendly progeny for assistance and guidance.

Family travel is also becoming a very youth-influenced industry as parents strive to find vacations that can suit the whole family in new and different ways. Coming soon to an inbox near you; kid oriented packages and brochures from travel companies.