McKinsey & Company Consulting interview of Google CEO discussing long-tail search viability.
This is a great video interview of Google’s CEO by McKinsey & Company Consulting. Read this definition of Zipf’s Law first, however, if you don’t know what Zipf’s law is. What’s especially intriguing is the interview segment that discusses the long-tail versus the head. Schmidt does not dismiss the long-tail as a search marketing strategy, but he does implicitly decry its value. My take-away from his comments, however, is that no single strategy is the marketing silver bullet; rather it’s a blending of marketing strategies that makes sense. Abandon the long-tail as a strategy? No. Augment your firm’s short-tail and primary brand promotion strategy with a concerted long-tail marketing strategy powered by blogs? Absolutely. This study leads credence to this augment, where it states that blogs have just as much reach as mainstream media.
As always I am grateful to Owyang to lend his insight and foresight. Here’s another excellent missive on the “Intelligent Web”. In summary, he posits that machines will begin extrapolating relationships and driving recommendations for connections from the juxtapositions and nexus between “our behaviors, context, and preferences”. Sounds a bit like the semantic web. Spinning through the comments on this post brought me to the Innovation Insight blog where Guy Hagen explores MIT research related to “reality mining”, which you can find more about on the MIT Web site. And this research paper out of UC DAVIS demonstrates how the MIT Reality Mining data set was utilized in tracking behaviour via mobile phones.
Imagine an iPhone application overlayed on a real estate firm’s listing data set, where the iPhone reports back over time thousands of user’s mobile browsing habits (i.e., driving around looking at homes for sale or rent). Having such data would allow firms to target advertising, Web site promotions, and give predictive insight over their competitors with respect to fluctuating markets (e.g., patterns will emerge over time that will tell a firm which neighborhoods, etc, are capturing consumer interest, thus enabling a firm to deploy marketing and agent resources towards these locations ahead of their competition).
This research paper by Deloitte is an excellent summary of important considerations firms should make when re-valuing their marketing team’s contributions. The gist of the article is that it’s incumbent upon firms to set up a marketing measurement scorecard that accounts for the systemic impact marketing expenditures have on the bottom line.
The paper argues that the measurement system needs to go beyond typical CRM-system level reporting (i.e., moving beyond just measuring ROI as the primary indicator of marketing performance) and align with overall company strategy, account for competitive influences on a product or service’s marketplace success or failure, eliminate silos between separate business units, and measure across product development and roll-out lifecycles.