Thursday, March 06, 2008

Best comment of the evening (supernova)

Best comment on the evening during Jerry's discussion on Business in the Networked world for the Supernova mixer:

Advertising is transactional

commercial success is persistent

this creates a conflict

For me this offers a great insight into the potential hazard for marketing professionals -- excluding brand campaigns, a lot of advertising as a medium leads you to think about the transactional impact -- am I going to get more people to buy the product? But you can do so in a way that overlooks the long term -- persistent relationship -- aspect that ultimately determines commercial success.

I was just advising a client today on why NOT to do an email "blast" as part of his company's online marketing campaign. If you look at the activity from a purely transactional perspective you could conclude that if X number of people purchases from the email, the expense of the campaign is covered and the activity is justified.

But if you put the "blast" into the context of developing a persistent presence in a market and a set of relationships in that market, the negative long term effects of being perceived as spammer that sends unsolicited mail could have a much greater negative impact than the transactional value of those one time sales.

This certainly isn't an indictment of all transactional advertising -- but perhaps opens the door to an economic analysis that includes the persistent relationships that a company ultimately is dependent upon for its long term success.

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