Lon Otremba, CEO of Access 360 Media, is a well-known interactive media pioneer in the Internet publishing, print, television and broadcast music industries. He’s a frequent commentator on interactive marketing and operating strategies, presenting at such events as the Forbes CFO Conference, The Economist Conference, and numerous Business Week, Internet World, and AdTech Conferences. He has also appeared on CNN and CNBC, and served as executive vice president of America Online’s Interactive Marketing Group.
Recently, he spoke at GLOBALCOMM, where we had a chance to chat a little. It was apparent that Lon’s deep experience in the online media environment has translated well for Access 360 Media, which leverages online, mobile, and brick and mortar media forms to creative dynamic communication campaigns targeted towards today’s youth market. Read on for a fascinating view of the social media revolutions, and don’t miss the Quicksilver case study in the middle!
BB: Much of Access 360 Media’s approach is new media oriented… Do you see this as a complete generational shift?
LO: I think it probably is. For example, if you were to walk into a CVS or Wal-Mart and see video programming on the TV sets, it’s usually not something that is very engaging, not to you, or me, and especially not to young adults. It’s strictly video wallpaper. Because of the shift, we’re working with clients to produce video programs that include, not just music videos, but also some branded content and an invitation to young adult shoppers to enter everything from a chance to win backstage passes to a concert to alerts on their mobile phone.
That kind of interaction and engagement inside a store is something that is quite natural for young adults, but isn’t normal for people outside that demographic. Many older customers may view that kind of content as intrusive. Yet if it’s done right, young adults don’t see it that way. They see it as relevant and engaging and kind of fun. At the same time, basic interactive-type stuff is generational.
I was at a high-level retail conference a couple months ago with some of the best store designers, architects, and store operational people in the industry. During a small demo on these “text to win”campaigns and how they work, I invited attendees to provide a text entry to win a 42-inch plasma screen that we were award to them. These are cutting edge architects, designers, retailers, and half the room needed help showing them how to send a text message.
That mobile medium, using it as a medium rather than simply a tool to place a phone call is, again, very natural for the young adult demographic, but not quite there yet for the older demographics. Still, that’s changing, too. The technology and carriers are making it a bit easier. Ease of use is fueling people outside the young adult demographic to participate in promotions and marketing that utilizes this technology. It’s still a challenge.
BB: What do you think about Facebook getting so hot? Do you see it as a fad because of them opening up their applications, or is it just getting started?
LO: It’s definitely not a fad. What Facebook did is kind of give in to the inevitable. I wasn’t there for this conversation, but I imagine 8, 10, 12 months ago that it went something like “Gee, what are we going to do about all of this?” I imagine they held off as long as they could before they made the decision to open up.
What you are seeing in the social networking space with Facebook is a technology that has found its space. Social networks have found their niche, however wide or narrow that may be, because they resonate with a demographic that has grown up trying to promote itself, recognize itself, and find people of like minds.
It’s a phenomena for a reason. Social networks strike a very responsive chord among people who want to live in the real world as well as a virtual one. If they choose to cross over from the virtual world into the real world, these social networks can enable them to do that.
As the technology improves, you’ll see more people microcasting, or the idea of smaller networks within big, broad social networks of real micro-interest. As smaller networks start taking hold, and sorry for being so commercial, you will see marketers start to take advantage of the social networking technologies. They will really begin to operate in more of a one-to-one realm. It’s a fascinating development and we’ve only seen the tip of the iceberg, in my opinion.
BB: What do you think of the iPhone?
LO: The iPhone is cool technology. Visually, its killer. I love how you can rotate the screen, and the resolution is great on a big screen, they really hit on something terrific with that. Some of the technical limitations they talk about like battery life, how you can handle music with it, and a few other things worry me, and I don’t like virtual buttons, I like to press a real button.
But all that aside, it’s an indicator of how out of the box thinking on the handset is going to drive the use of real crossover technologies. A lot of the convergence that was talked about 5 or 6 years ago is really going to start to happen.
The iPhone is the start of another revolution in the way people utilize portable technology. It?s not just mobile phones anymore. Its ability, which I suspect will eventually come, to connect via WiFi for a phone call rather than a digital carrier is going to create a whole, new open environment in wireless. Whether that wireless is WiFi or on the carrier’s networks will be less of an issue than what you want, when do you want it, and how do you want to get it? The device will be the unifying factor in all of that.
BB: A lot of the talk now in content creation is the move from traditional ads towards unique types of campaigns that are customized towards customers. Could you cite a case study that you have been a part of in that sense?
LO: We worked with Quicksilver, which had always been a part of this huge surfing competition called Big Wave on the north shore of Hawaii. Big Wave attracts surfers from all over the world, and Quicksilver wanted to engage customers and members of the surfing community in their stores and get them to recognize that their particular brand, Quicksilver, was really a leader in the Big Wave event.
Access 360 Media suggested using mobile to interact with customers, current and prospective, bringing the Big Wave contest and mobile together. We developed a campaign that was in the stores and reminded people that they could text BigWave. When users did that they could be entered into an alert system that would provide information on wave heights, the surfers, what the contest conditions were, who was winning, and other types of interesting information. This was a great way to get participation from people that never in a million years could go to the north shore of Hawaii. They could feel a part of Big Wave through a simple connection using alert messages.
That proved to be a very successful campaign for Quicksilver as it created one-to-one relationships with interested customers. It also gave them the opportunity for further messaging to customers as long as they were willing to receive messages, and really showed Quicksilver that they could use alternative means to reach people in a unique and customized way.
You are going to start to see those are the types of campaigns more frequently. If you aren’t going to go with the one-to-many broadcast model, you have to start thinking of other ways to bring the connection closer to home. That?s going to mean more relevant marketing, which is the thing I get most excited about. The opportunity to create real relevance. And everyone knows that relevance is what turns advertising into something valuable instead of something annoying.
BB: What are your thoughts about the “Participation is Marketing” meme running around?
LO: One of the things I’ve learned being around media for a long time, in particular in creating a company around the young adult market, is that it’s got to be real. This demographic — probably more than any — can really spot a phony. A phony isn’t always a bad thing, but you don’t want to be dubbed as a phony when you are trying to be real.
If you’re a marketer and you put a spoof up on YouTube, that’s okay because they know you’re being phony but it’s with a purpose and there’s something authentic in that. But don’t try to put something up on YouTube and try to have it take hold as some kind of secret video. Or claim it’s truly viral when in fact it was created by your ad agency on Madison Avenue. That will be discovered and will hurt you more than help you.
Being part of a world itself, whatever it may be, surfing, or active sports, or fashion, or the world of MySpace alternative garage bands, whatever that world might, be authentic. That will help you.
One of the things, we learned that young adults are not opposed to commercialization. They like good deals, hearing about products they enjoy, and buying things just as much as older demographics, and they enter contests that we all thought were corny.
What’s different about this group is that they have an enormous number of messages coming at them, much more than ever before, 10 times as many in the past decade. They have to be more selective about what to let in, what’s real or not, and they don’t have as much time to deliberate over offers. They have learned to be much more discriminating.
When you are part of a world with a credible brand, it gives you a bit more brand permission than if you were coming at it in a “bull in a china shop” way. Being authentic is a key part of success.
BB: What are your thoughts on the Whole Foods scandal?
LO: Anybody can blog and say whatever they want, but I do think there is a separate standard that applies to CEOs of public companies. It?s at best disingenuous of the guy, and at most unethical. From what I’ve read its not illegal, but it’s not the right thing to do.
Part of it is, what are you trying to accomplish? If people reading that blog are trying to share information about that company and trade war stories and that kind of thing, that’s fine. But his intention certainly appears to be more than merely an entertaining conversation or casual fun, that he had an agenda and it backfired on him. I don’t think that’s a good idea and that this brouhaha is appropriate, frankly.
BB: A lot of people who have commented on the story point to it as a transparency issue. Do you have any thoughts on that?
LO: There has to be transparency, and I think that’s an important aspect of financial reporting when you’re dealing with public markets. Even a hint of something not being totally transparent or subterfuge, it just sends the wrong message. It’s not a good idea.
BB: Tell us a bit about your company.
LO: At Access 360 Media we decided to kind of build a media company from the ground up in order to engage quite possibly the toughest demographic to reach, but quite possibly the most valuable, in young adults. For general media purposes we define our audience as 14-34 year olds, but the “sweet spot” so to speak is 16-24.
This is a demographic that has some unique properties. While I’m not in the demographic, I have two teenage kids who are. It occurred to me, after being in the media business my entire career and seeing how they’ve grown up and what it takes to engage them; that the old, traditional media models just don’t apply to this demographic. This is a demographic that is highly sought but difficult to reach.
When I started my career 20 years ago, the model to start or reposition a brand was pretty straight forward. Today, if I had to launch a brand that was targeted at, say, my teenage kids or people in their 20s, it would be a tough challenge because it’s a different media landscape. It’s necessary to recognize the rules have changed.
What we created with Access 360 Media was building a media model, assembling the right media assets to engage brands with our audience in a relevant way. And engaging for this audience means not trying to shoehorn some old media model onto them. Accept the fact that young adults live in the real world as well as the virtual world, and in large measure the real world to them is a retail environment. We’ve lined up several retailers and have the ability to deliver media messaging within the retail environment of those retailers who specify in reaching young adults.
The second thing that platform allows us to do is bring the mobile platform in because virtually every young adult has a mobile phone. Increasingly, young adults no longer have land lines and strictly use their mobile phone. In addition, that phone is a link between what they are doing in the real world and in the virtual world. It’s a convenient way, via text messaging subscription, to tie-in the media message and extend it beyond the retail environment.
As the third component is the web itself. All of our retailers have websites where they try to sell things and create commerce and information. Align 360 Media extends the media message on behalf of brands who want to reach audiences beyond store walls and beyond the mobile platform into the web environment. We offer advertisers a program that really blends all three components. Oftentimes no two programs are alike; we think of fun, creative ideas and use our 360 Media platform to great effect with our brands.
Technorati Tags: Access 360 Media, Lon Otremba, Quicksilver, mobile, new media, social media, Buzz Bin, Whole Foods
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