I think everyone should work on having an effective online presence — a personal brand. It’s like an insurance policy for your career. If you’re “known,” more doors will open, more calls will be returned, you’ll have more choices in your career.

Like most people I know, Amanda Russell barrelled into her brand without a clear plan. When her career as an elite athlete was upended by injury, she took her re-hab exercises online and became one of the first YouTube fitness influencers.

She leveraged this experience into business ventures, starting and selling a couple businesses. Her next venture was in academia, creating pioneering programs at Northwestern University and the Univerisity of Texas. Along the way she’s consulted to some of the biggest brands in the world.

Sounds like a dream, right? But something was missing. Amanda realized she wasn’t practicing what she had been preaching — authenticity, human connection, and taking risks. She spent months working through her next step and she discusses this journey in the next episode of The Marketing Companion.

I think this is an interesting point in time to look at this issue. Some of us have been working on personal brands for years … 15 for me! But many are out-growing their skin and it’s time to evolve. Amanda provides a case study on personal brand evolution.

Click here to enjoy Marketing Companion Episode 311

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Are you tired of reading about AI? Me too.

There’s a whole world of marketing disruption and opportunity to talk about, so let’s put GPT on pause for a moment and consider the State of the Nation and the 10 biggest marketing challenges.

One of the best parts of my job is interacting with business leaders of all types. I get a broad, global perspective of marketing issues from the very largest companies to solopreneurs and startups. And I certainly hear some common themes when it comes to the biggest marketing challenges.

Surprisingly, they have nothing to do with AI, at least not directly. Here’s what’s going on in the world from my perspective. These are NOT in any particular order.

1) Awareness

OK, I lied. This one IS in order — probably the biggest challenge we face today.

Marketers create customers. And to create customers, we must create awareness for our products. Rising above the noise to earn attention has never been more challenging. Media channels are fragmented and, as we see with TikTok, tentative!

Consumers have become their own streaming media entities. How do we get into those earbuds? And then you have AI swarming the media landscape. Sheesh. Marketing is hard. This is the time for audacity! 

2) From big campaigns to small acts of cultural relevance

A few years ago, Pepsi announced that the big brand “bonfires” were over. Brands had to connect to moments of cultural relevance. At the time, I wondered what that meant. But it became clear as brands became part of music, sports, fashion and leaned into emerging consumer signals.

Certainly, that is the direction of the marketing world right now, as brands try to capitalize on memes and trends instead of planning massive campaigns months in advance. A focus on cultural relevance requires an obsession with …

3) The Need for Speed

At 8:48 p.m. on February 03, 2013, a milestone event occurred that changed the face of marketing forever. The power went out at the Super Bowl. and in 10 minutes, Oreo launched an ad:

I remember being at a Super Bowl party  — there was a gasp in the room when the commercial ended. How did they do that?

The ad transcended all norms of advertising. The brilliance lay not only in the imagery but in the blazing speed of execution. This wasn’t a meticulously planned campaign — it was marketing at the speed of culture. The ad wasn’t just broadcast on TV; it also became a social media viral sensation and the company’s all-time most tweeted content. It was a global showcase of the potential of real-time marketing.

In the TikTok Era, a brand might have an hour to be relevant. There’s no time for planning or measurement. Many brands live in a reaction culture. This has massive implications for creative, resources, and legal approvals!

If the need for speed hasn’t transformed your marketing department, it will soon.

4) The Disconnected Customer

Many people, especially those under the age of 25, experience their entire media world by themselves through earbuds. They binge music, video, movies, and podcasts in an ad-free streaming environment. They play their games and socialize in Discord groups. They’re not visible to brands, and they don’t see the brands either, at least not like they used to.

A few years ago, I wrote a book about one solution to this dilemma: Belonging to the Brand: Why Community is the Last Great Marketing Strategy. I was absolutely right about this trend. As I am writing this post, I’m attending the global thought leadership conference SXSW. The sessions on brands and communities are so hot that they had to create extra sessions. In the current marketing environment, this might be a hotter topic than AI.

Community is certainly one of the few options to earn your way past those earbuds!

5) Adjusting the marketing/advertising infrastructure

Quiz time.

You know without a doubt that word-of-mouth marketing (WOMM) is the purest, most trusted form of marketing, right? It’s been around forever … but how much of your budget is devoted to WOMM? My guess is: ZERO.

How about brand community? How about experiential marketing? Also, probably zero.

There are lots of marketing options beyond Facebook ads and SEO but we’ve stayed in the familiar marketing trenches. If you have a contract with an ad agency they are probably resisting alternative forms of marketing because, well, they’re not ads. There is a legacy infrastructure in place that keeps us less effective and boring.

6) Navigating a world where one person can alter brand strategy

Life used to be so easy. A brand was what we said it was. Today, a brand is what we tell each other. And that can spin out of control.

The problem with our social media world today isn’t a matter of free speech, it’s a matter of amplification. A hundred years ago, if somebody spread a conspiracy theory, it would be unlikely to get any further than the boundaries of a neighborhood. But today, false information and deep fakes can reach millions if it comes from an influencer.

Our favorite brands have spent decades and millions of dollars building consumer connections. And all that can be ruined by somebody who is out to get you. It is certainly a weird world where our hard-earned brand marketing can be tarnished in a single post.

7) Activating influencer marketing

I was sitting at a table of brand managers, and one of them said, “Influencers are everything.” That’s a profound statement. But if you’ve followed this post so far, you can see how influencers fit into this new marketing world.

Influencers have massive, loyal audiences, and their message can cut through the earbud blockade. They can be counted on to react with speed, in the moment. In fact, day-to-day relevance is what makes them great. They are more than trusted — Their biggest fans consider them family.

I’ve been following the influencer marketing trend since its beginning, and I think the momentum will pick up going forward. While this is mainstream media for the biggest brands, most companies are just getting started.

8) Talent Acquisition and Skill Gaps

The rapid evolution of digital/influencer/meme marketing requires new skills in AI, analytics, and content creation. Finding and retaining top talent is increasingly difficult. Something I hear all the time: “There is no shortage of marketing jobs. There is a shortage of the right skills for those jobs.”

9) Proving ROI and Justifying Budgets

Marketing teams face increasing pressure to demonstrate clear ROI on campaigns. With long sales cycles and brand-building efforts, attributing revenue directly to marketing initiatives has always been challenging.

I think this is the greatest source of marketing stress. Your boss expects marketing to be coin-operated. Put coins in, get more coins out. But customers don’t operate that way and they don’t care about your quarterly revenue goals. Marketing takes patience and that is not a popular trait these days.

10) Global de-population

I bet you didn’t see that one coming. But this mega-trend will put a lot of pressure on marketers and their brands.

The global birthrate is nowhere near the replacement average of 2.1 births per family. In the U.S., for example, the rate is about 1.4 births per family. Almost every business depends on population growth for incremental annual sales gains. However, the population will inexorably decline in most developed nations, which has massive implications for sales and marketing.

The latest UN numbers show that 2040 will be the peak population on earth, just 15 years away. So, it’s coming at us quickly.

Well, on that happy note, I’ll conclude this post on non-AI marketing issues. You might be thinking, “Whew … that’s a lot.” But that’s exactly why I love marketing. It’s a field that is endlessly changing and endlessly fascinating.

I love solving hard problems and marketing has no lack of them!

Need a keynote speaker? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

Image courtesy Mid Journey

The post The 10 biggest marketing challenges have nothing to do with AI appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

A common click-bait technique is to write a blog post with “The death of …” in the title. I’ve learned to ignore these, but I’ve seen such an avalanche of headlines with some version of “the end of brands” that it was time to comment. It’s not just a sensationally ridiculous idea, it’s a dangerous one.

I’d like to insert some common sense into the dialogue and explain why brands are more important than ever.

What is a brand?

Let’s take it from the top. A brand is an emotional expectation.

Here’s a little exercise I use in my classes: If I told you Coca-Cola was building a hotel in your city, could you imagine what it looks like?

Your mind immediately starts painting: Red velvet everywhere. Curved, flowing architecture like a bottle. A fountain in the lobby bubbling with happiness. The air smells like vanilla and spice. Even the receptionist’s smile sparkles.

You can see it, can’t you? Feel it? Hear it?

That’s a brand.

It’s not about sugar water. It’s about an emotional promise that’s so strong, so consistent, you could architect an entire building around it.

You can count on this “Coke feeling” in any circumstance, in any place. The trust in this consistency keeps that company at the top of your mind and maybe even at the top of your heart, almost everywhere in the world.

It doesn’t appeal to everyone, especially if you are health-conscious, for example. But the brand means something to enough people to make a difference, and make a profit.

There is no utilitarian advantage of a pair of 20-year-old Nike Air Jordans selling for thousands of dollars in Japan. There are better shoes, even pricier shoes. But this shoe makes us FEEL something and that makes it rise above the fray.

Creating this emotional shorthand isn’t easy. It’s like composing a symphony that plays in people’s hearts every time we see a logo.

But here’s why it’s worth it: When everyone else is competing on features and price, you’re competing on feelings.

And feelings? They’re priceless.

There are a few reasons critics claim brand marketing is in decline (or dead!). Let’s knock those down:

1. The Customer is in Control

One reason critics cite for the diminishing importance of brand marketing is the shift in power between businesses and consumers. In the past, brands held sway over public perception because they controlled the narrative through traditional media channels. Today, the internet has democratized influence, empowering consumers to control the narrative through their opinions, reviews, and posts.

I’ve written about this extensively, most notably in the book Marketing Rebellion, which suggests that nearly all the power to drive sales is in the hands of the customer. This doesn’t mean brand marketing is dead. It means that we can’t count on advertising any more. The new imperative is to create value and experiences so insanely great that people can’t wait to spread the word.

The Real Job of Brand Marketing Today:

1. Stop trying to control the narrative (you can’t)
2. Start creating experiences worth talking about
3. Give your customers something so amazing they become volunteer marketers

The customer is the brand marketer. How do we help them do the job?

2. The Rise of Performance Marketing

Over the past 25 years, performance marketing (SEO, targeted ads, etc) gained prominence over traditional brand marketing.  Businesses love how advanced analytics tools can track and measure the effectiveness of their campaigns in real-time. By comparison, assigning sales attribution to brand-building activities can be difficult or impossible.

Performance marketing is vital to many companies, especially early-stage companies that need to fill a pipeline and generate customers fast. But arguably, in the end, the brand is all you have to differentiate yourself.

In my book Audacious: How to Win in an AI Marketing World, I feature a case study on Liquid Death, the fastest-growing beverage in the world — a five-year-old startup! Founder Mike Cessario said:

“You’re only going to win with branding. You won’t win with some functional ingredients you can’t own. In that case, when you’re big enough, Coke or Pepsi or someone else will just produce the same thing—same ingredients, cheaper, more widely distributed, and then you lose. With water, there’s minimal, if any, functional difference between the brands. The difference is purely marketing. People want to walk around with this thing instead of that thing. None of the water brands were interesting. I did my homework. There was a huge opportunity to tell a different story.”

A successful company can’t stick with only performance marketing in the long-term. Building brand awareness powers long-term growth. When consumers recognize and trust your brand, performance ads become more effective. Case studies show that smart brand marketing can slash Customer Acquistion Cost by up to 70%.

Branding creates distance between you and your competitors, paving the way for future growth.

3. The Commoditization of Products and Services

Some say that the commoditization of many industries is killing brands.

Perhaps the poster child for this argument is Temu. Temu is an eCommerce company that ships generally non-branded, low-cost commodity products directly from Chinese factories. It is a company that has exploited digital technology and eCommerce psychology to the maximum and pioneered a new way to serve bargain basement shoppers.

Here’s the thing about Temu: They’re not killing brands. They’re just showing us what happens when price is the only story you need to tell.

There has always been a segment of consumers who love to hunt for bargains instead of brands for economic necessity or perhaps just for fun. Temu has digitized the treasure hunt.

Side note: I predict that at some point, Temu will create its own simple, reliable branded products, just as Amazon did. So, brand would matter, even in the commodity sphere.

4. Categories?

A recent exchange on LinkedIn offered an idea that creating “categories” is more important than brands.

Here’s an example: Dude Wipes. This company created a better, environmentally-sensitive way to wipe your rear. I literally never thought I would use those words in a blog post, but there you go.

Let’s break this down, from the bottom-up (pun intended)!

Dude Wipes didn’t just create a category — “premium man-focused bathroom hygiene.” They built a brand that makes guys feel okay about buying fancy toilet paper.

But creating a category without building a brand is like inventing a new sport and not telling anyone about the rules. Being first means nothing if you’re also forgotten first. Your brilliant new category is a sitting duck if you don’t wrap it in brand awareness. Your competitors are watching, waiting, and probably have deeper pockets than you do.

Look at what happened to:

• Friendster (created social networking, Facebook owned it)
• Zune (an early device to carry songs in a small device)
• Palm Pilot (invented PDAs, now a trivia question)

They all created categories. They all got steamrolled by brands that did it better.

Category without brand is silly.

5. The Impact of Social Media Influencers

Social media has fundamentally altered the way consumers interact with brands. Influencers, who often have more authentic connections with their followers, have emerged as powerful voices in the marketplace. Rather than relying on brand-created content, consumers turn to influencers for recommendations, reviews, and inspiration.

Hey … it’s still a BRAND! Whether it’s a person or a product, you’re still creating an emotional expectation. And the influencer is a lot more effective if their audience has heard of the brand!

Branding Forever

There is simply no rational argument for the declining importance of brand marketing. In fact, it is more important than ever, especially in an AI world. Here are a few quick takes:

• Branding alone creates differentiation in a crowded marketplace (like Liquid Death!)
• Brands are beacons of trust in a world of deep fakes and misinformation
• Branding isn’t replaced by “categories” or performance marketing. It enhances these initiatives.
• Loyalty to a brand enables consumer brand advocacy and influencer marketing.
• Brands and brand stories resonate across generations.
• In times of crisis, a well-established brand is better positioned to weather the storm.
• Brand trust and recognition is the fuel of international expansion.

In a world where anyone can make anything, brands are the difference between:

• Trust and uncertainty
• Loyalty and indifference
• Premium prices and commodity status

Declaring the death of brands isn’t just wrong — it’s like declaring the death of trust, loyalty, and human connection.

Need a keynote speaker about the future of marketing? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

The post The end of brands, or the end of common sense? appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

Jaguar has been an easy target for critics after the company re-branded itself with a foppish, silly ad and a strange new logo. However, I am not one of those critics. Today, I’ll explain why I’m the only marketer on earth defending the Jaguar strategy. In fact, they are on the only reasonable path for the brand.

Let me be clear that at this point, I am separating the ad/logo from the strategy. In fact, I hate the ad, which seems like an AI fever dream of what “creative” is supposed to be:

I also abhor the logo re-design because Jaguar had one of the coolest logos on the planet and they ruined it.

Why am I pro-Jaguar? Because I think the strategy is brilliant, even if the execution (so far) seems disastrous.

Why Jaguar needs a new strategy

Beyond the disdain of the brand creative, there are three main criticisms of the Jag re-brand:

1. Ignores a legacy of “Britishness” and performance / luxury
2. The ads didn’t feature a car
3. Targeting a creative customer base seems like nonsense.

Let’s break down each criticism:

1. Ignores a legacy of “Britishness” and performance/luxury

I would probably be considered a potential Jag customer. I have owned a luxury car for decades, primarily Audi or BMW. But I have never considered a Jag. In fact, I’ve never known a person in my life who has owned a Jaguar, which, in hindsight, seems remarkable.

Jaguar is not even in the top 10 of luxury car brands. In terms of market strength, it is a has-been, an unprofitable, forgotten also-ran. When was the last time anyone said, “Man, I can’t wait to get my hands on that new Jag!” Right. Probably somewhere between bell-bottoms and Beta video tapes.

In addition to style, research shows there are two big considerations when deciding among luxury cars: performance and maintenance costs.

How does Jaguar stack up? Automotive engineering is dominated by Germany, Japan, Italy, and America these days. To most, Jaguar means frequent break-downs and high maintenance costs. Am I rolling old tapes? Maybe. But that is the brand’s image and it would cost a lot to change people’s minds about that. Is the classic image of James Bond driving a British car relevant for young buyers today? Is it worth holding on to? Do you really want a mercurial British car as your first choice in a luxury car?

I put Jag in the same category as another recent brand rebel — Nutter Butter. Nutter Butter is Jaguar’s brand chaos soul mate — an also-ran in the cookie business with no strong brand meaning. Creating bizarre, unsettling TikTok videos upends cookie marketing tradition and any brand heritage. But who cares? Nobody was talking about Nutter Butter, and now they are.

Could Oreo go down this road? No. They’re the leading brand and have spent millions to develop “meaning” with its customers. BMW can’t suddenly start acting like a TikTok influencer on a sugar rush. Mercedes can’t go full re-brand gonzo. They’ve got too much to lose.

But Jag isn’t a leading brand. It’s a losing brand. So why not shake it up in a bold and conversational way? The content of the advertisement is a red herring. We’re looking at Jaguar for the first time in decades.

2. The ad didn’t feature cars

One of my favorite ad campaigns in recent years never featured a product. Never even mentions it.

A Chick-fil-A employee sits on a red couch with a customer and talks about how the employee met a special customer need. For example, an employee learned sign language to serve a customer who was deaf. Another bonded with a child who had a heart transplant.

What does this have to do with chicken sandwiches?

Brand marketing is about creating an emotional expectation between you and your customers.

To illustrate this in my speeches, I’ll ask the audience to shout out what they think of when I say “Coca-Cola.” Without exception, they say “polar bears.” There was the one time when a guy in the front row said “sadness,” but that’s a story for another day.

My point is that Coke has spent billions to move your mind away from brown sugar water to playful, happy Christmas bears. Coke is a feeling. 

Chick-fil-A has its critics, but it is more than fast food to its raving customers. It’s a warm and happy feeling reinforced by food-less commercials.

So I don’t dismiss the Jaguar ads just because they are car-free. Will you buy a luxury car for its engine dimensions and gas mileage or because it actually means something to you? Jaguar’s brand meaning before last weak was as thin as Earl Grey Tea.

Finally, let’s address the target market strategy, which is aimed at …

3. Designers and Creatives

Years ago, I worked on an influencer marketing project with a luxury automotive brand. The company was introducing a stylish new car and wanted to host events nationwide for social media titans.

But I found that every car company was going after the same small group of luxury car influencers. It was nearly impossible to get their attention. So I started researching adjacent demographic markets. What other categories of people talk a lot about cars?

I discovered two groups obsessed with cars: technology geeks and creative directors. That makes sense, right? Cars are about tech and style.

Tesla has probably cornered the market for techno geeks. But what car brand has a special and unique appeal to creatives? There isn’t one. I think Jag studied the market data long and hard and saw a seam they could own. Brilliant. Early feedback shows creatives applauding the brand.

And by the way, the “copy nothing” appeal to creatives is a direct line to the Jaguar brand heritage.

The holistic strategy

Jaguar prototype

An ad is not a strategy. A logo is not a strategy. So what else do we know about the re-brand?

• Jag has built a radical new electric car that will sell for roughly double the price of current Jaguar vehicles. The car is expected to debut soon at the Miami Art Show. In an interview with Automotive News, Jaguar Land Rover CEO Adrian Mardell said the still-secret Jaguar GT will make people “salivate” when they see its styling.
• They are targeting young, wealthy, design-minded people. After the internet / AI boom, there are a lot of young millionaires out there wanting to make their own statement.
• The new all-EV Jaguar cars will be positioned as “exuberant,” “modernist,” “compelling,” and all about “fearless creative.” The strategy is spearheaded by an experienced and respected auto brand marketer, Gerry McGovern. So this re-brand is not the whimsical idea from some GenZ agency. There is data and insight behind the strategy. By the way, McGovern already turned the Range Rover brand around. So I am willing to give him a pass on the ad fumble.
• The company is overhauling its dealership network which will also feature high-end art and cusine. That is a BOLD reinvention of the auto dealership.

Jag is re-imagining the whole automotive experience through the lens of the creative class. It’s ludicrous to judge the entire strategy based on one ad.

Let’s give it time.

I just finished writing a book about disruptive marketing (“Audacious: How Humans Win in an AI Marketing World“). I see the underlying logic of what Jaguar is trying to do. Jag might be a competent brand. But competent doesn’t cut it. Competent = commodity. Competent doesn’t create conversations. My book explains how the world’s best creatives are breaking through the noise by disrupting the:

• Narrative
• Medium, where the story is told
• Who is telling the story

From what we know about the brand’s holistic strategy, Jag is completely upending the luxury car narrative. This is exactly what they need to do. 

The risk? There is none. You can’t kill what’s already dead. The only risk is continuing to be forgettable.

They’re in that sweet spot where “nothing to lose” meets “everything to gain.” They’re in the perfect position to pull a Nutter Butter — to be so outrageous, so unexpected, that people can’t help but notice.

The new car is supposed to be introduced in a few weeks. If it’s as sleek and cool as it is rumored to be, if the dealerships become something more than a place where people hate to shop, if Jaguar creates a story that truly connects with a creative class longing to be understood … Jag will be newly relevant.

Perhaps it’s already on the way. After all, when was the last time we spent this much time talking about Jaguar?

Exactly.

Update: Jaguar has now introduced the car. The first look:

Here is the introduction video:

Need a keynote speaker? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

Illustration courtesy Jaguar

The post In defense of Jaguar (I think I’m the only one) appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

Today, I’ll explain the Parasite Economy and why it is destroying businesses but opening up new opportunities for creators.

For many years, I’ve subscribed to Ted Gioia’s newsletter, “The Honest Broker.” It’s hard to describe this newsletter. Ted is a music critic and historian whose musings tend to wander all over the cultural landscape. But he has a knack for consistently connecting the dots in insightful ways, and I almost always learn something from his posts.

In an article titled “Are We Now Living in a Parasite Culture?” Ted makes an observation that is profound in its simplicity and wisdom. It goes like this:

“Nowadays, parasite businesses are the largest corporations in the world. Their technologies do many harmful things, but lately they have focused on serving up fake culture, leeching off the creativity of real human artists.

“Just take a look at the dominant digital platforms—and consider how little they actually create. But the amount of leeching they do is really quite stunning, especially when compared with the dominant businesses of the past.

• What does Facebook really create? Almost nothing. It relies on 3 billion users to create content (ugh!—their word, not mine), and then monetizes these people and their unpaid labor.
• What does Google really create? Almost nothing. Just look at how it destroys newspapers, while doing zero journalism itself. The comparison with a parasite could hardly be more apt. It feeds off the news, but never adds to it.
• What does Spotify really create? Almost nothing. The folks at Spotify don’t worry about their lousy app, because they’re so busy sucking blood from the creative economy, to which they contribute not one whit. Meanwhile, their CEO is now richer than any musician in the history of the world.
• What does TikTok really create? Almost nothing. This company relies on one million creators—none of them are employees. Most of them are working for hopes and dreams. TikTok is run like a Hollywood studio, but without cast, crew, directors, scriptwriters, or any creative talent whatsoever. But that hardly matters when you’re just a parasite living off unwitting hosts.

“Consider the case of the woman who attracted 713,000 TikTok followers and generated 11 million views for her videos—and got paid $1.85 over the course of five months. No that’s not $1.85 million—it’s one buck and eighty-five pennies. You can practically hear the lifeblood getting sucked out of the creator economy.”

Ted’s post continues, and he concludes by saying, “For the first time in history, the Forbes list of billionaires is filled with individuals who got rich via parasitical business strategies—creating almost nothing, but gorging themselves on the creativity of others.”

As usual, Ted made me think long and hard. I agree with him, but there is another side of this coin. In fact, the Parasite Economy is the best thing that ever happened to me in my professional life. And it can be for you, too. Today I’ll explain why.

The Parasite Economy’s Poster Child

On the surface, I am the poster child for “Victims of the Parasite Economy.”

I’ve probably added 20 million words to the social web through my blog and podcast alone. Google and its algorithm brotherhood crawl the internet like bugs, chewing my content like termites and then hurling it back out as an indistinguishable paste. The molecular material of my precious content is within everything now—no attribution, no money, no customers.

The years of effort behind this content are now part of the immortal glue that holds AI together. How have I been compensated for my significant content contribution? Nothing at all. I’ve never received one penny from Google, social media sites, or an AI company.

And yet, after 15 years of blogging and 12 years on the podcast, I keep churning out more. In fact, I think I’m doing my best work ever, giving away my most valuable ideas and insights every week.

Through Ted’s view, I should be incensed. But I’m grateful. Here’s why.

The Benefits of the Parasite Economy

While it’s true that I’m not making money from my content, I’ve made millions of dollars over the course of my creator career because I built an audience. You can’t have an audience without awareness, and you can’t have awareness without giving away valuable content.

I can see why Ted or any creative would feel abused because their content is consumed, loved, and shared without compensation. The key to surviving in the creator economy is not counting on your content for revenue. Those days are gone. So go ahead and grieve that reality, but get over it and look for other profitable ways to serve your audience.

I have 24 revenue streams. The most important ones are:

• Keynote speaking events and corporate workshops
• Personal coaching
• Book sales
• Private marketing retreat (The Uprising)
• Online classes

Until last year, I would have had marketing strategy consulting on the list — this was number one for many years. But I’ve been turning down these opportunities due to the wear and tear of travel.

My point is that, purely based on the awareness provided by the Parasite Economy, I’ve reinvented myself in a way that has allowed me to move away from the 9-5 corporate job.

The economics of our world today

I’ve never received a dime from Google or Facebook, but I’ve also never paid them (or anyone) a dime in advertising. So, at least for me, it’s been a fair trade-off.

Likewise, even a media company like The New York Times has been able to reinvent itself by diversifying into new media properties like podcasts, events, books, and speaking (they are building personal brands for their best reporters).

I am NOT dismissing the galaxy of negatives about internet parasites, including many of the good points Ted made in his post.

But I wanted to provide an alternate view that, with some creativity and resourcefulness, a creator can thrive, even under these strange circumstances.

Need a keynote speaker? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

Illustration courtesy of MidJourney

The post The Parasite Economy: An Upside for Creators appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

About a year ago, singer Ed Sheeran partnered with Heinz on a new hot sauce. This is a great lesson literally pointing to the future of influencer marketing, and I kept forgetting to blog about it. But before I get to the dazzling marketing lesson from Ed Sheeran, let’s talk about the marketing problem with soap …

The new influencer landscape

I recently attended a meeting at a CPG company famous for its iconic soap products. They went through a big competitive analysis with profiles of all their traditional global competitors. At the end of the talk, I sheepishly raised my hand and suggested they had completely missed their biggest competitive threat. It isn’t P&G. It isn’t Unilever. It’s a 24-year-old TikTok star.

Influencer marketing has entered a new phase. The biggest stars’ celebrity power commands more loyal audiences than traditional TV networks. Mr Beast has more subscribers than Netflix.

These aren’t just kids shilling energy drinks. They are savvy entrepreneurs who are building their own mega-brands. Here are a few examples:

• Addison Rae – Item Beauty
• Emma Chamberlain – Chamberlain Coffee
• Charli and Dixie D’Amelio – Social Tourist (clothing line)
• Hyram Yarbro – Selfless by Hyram (skincare line)
• Blair Walnuts – Jewelry line
• Michelle Khare – MKfit (fitness app)

And, of course, there is Kylie Jenner, the world’s youngest self-made billionaire who sells her cosmetics in airport kiosks,

These young creators have something the big companies don’t—a credible, authentic voice and a loyal audience that visits them online daily to see what they’re selling next.

And that brings us to the marketing lesson from Ed Sheeran.

The beautiful ketchup move

Like the other influencers I mentioned, Ed Sheeran could have created his own line of hot sauces and a saucy empire. But why?

Partnering with Heinz made so much more sense. For one thing, Heinz actually makes stuff. They have contracts with suppliers, big factories, and an excellent distribution system built over a hundred years. So, with very little actual effort, Ed made his hot sauce dreams come true just by lending his charming face to the new brand. Win-Win.

And here’s the lesson for the mega-brands. Put your marketing ego aside. Go find yourself some beloved influencers and make them rich. They can out-market you, but you can out-manufacture them. It’s a match made in heaven.

Since the Ed Sheeran announcement, I’ve been waiting for a deluge of influencer-brand product launches, but there have been very few. I don’t get it. Influencers own your market, folks. Partner with them to disrupt your market before you’re the one being disrupted.

if you’d like to hear more about this subject, I discussed these ideas with my friend Amanda Russell. You won’t want to miss it!

Click here to enjoy Marketing Companion Episode 298

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A LinkedIn comment made me wonder about the practical economic value of human authenticity and the “soul” in our work. Does that seem heretical? Let’s dive in and see …

To set the stage, Andrew Safnauer read my post about how AI is taking the soul out of music, marketing, and most creative endeavors. Most people responded with a virtual high-five to the idea that we will always seek out true human connection. This has been my position, too. Then I read Andrew’s comment (edited for style):

“I worked in radio for my first career. Post deregulation in late 1990s, the industry eliminated overnight DJs through automation. (Saved money). Worked so ‘well’ that they moved it to other time slots. Slowly but surely local talent was replaced by someone from out of town or, more often, no one — they just let the music play.

“The technology removed the unique advantage of radio — the local touch, a connection to the community. And frankly, they removed the soul of what a local radio station brought to a town.

“You can buy a decent frozen pizza made by a machine but it is never going to be as good as one made at Sal’s Pizza by a guy who’s worked the oven for 30 years. His work has soul.”

Let’s dissect this observation. There is an unexpected truth here.

The economics of human authenticity

Andrew’s comment has two nuanced, important points:

1. The radio industry, built on the popularity of human DJs, eliminated them—literally cutting the soul out of the product. And it didn’t matter. Radio stations moved on with a new economic model nearly devoid of human authenticity.
2. However, the beloved local pizza baker can only survive in a world of big chain competition due to the local, human connection.

This got me thinking. Despite our human marketing pride, the authentic human element doesn’t always win. Businesses will use AI to cut the heart out of our work to save money, and in some cases, customers won’t care. This might seem unfair, but as much as we decry the soul-less AI bots, they’re coming, and they’re winning.

The other point is that soul does matter … sometimes. Why is human authenticity critical for a local pizza guy and not the popular DJ?

When I was a kid, the local DJs were GODS. They were your only connection to music discovery in those pre-Spotify days. I would argue their role and presence in a community was at least as important as the pizza maker. What’s the difference and what went wrong?

Authenticity isn’t dead. It’s just … complicated.

But I think I know how to unravel this.

The jobs to be done

On this blog and in my podcast, I’ve covered an idea called “jobs to be done,” attributed to Clayton Christensen.

The simple idea is that people don’t necessarily buy a product. They buy a job to be done. People don’t need a drill. They need a hole.

One way to figure out the economics of human authenticity in an AI world is to evaluate this through the lens of jobs to be done.

When I have a problem with an appliance, I call a customer service rep to get it repaired as fast as possible. The job I need is to fix this thing fast. I don’t care if the rep on the other end is a human who writes poetry and cares for her elderly goldfish. I just want to get off the phone, and if an AI bot can do it better, that would be great!

In this case, the economic value of human authenticity based on the “job to be done” is zero.

When I was a kid, the job I hired a radio DJ for was to:

1. Play my favorite songs
2. Answer the telephone request line to play my favorite songs
3. Help me find more favorite songs.

They were the gatekeepers of cool, but really … it was about the songs. They became dispensable because the job to be done is easily automated. I liked these personalities and enjoyed their jokes, so the economic value of human authenticity would not be zero, but it was low enough that I don’t lay awake at night grieving the loss of DJs. I happily accept the convenience of Spotify.

Sometimes, the robot wins.

AI and your economic value

By comparison, let’s examine the jobs we might hire the local pizza chef to do:

• Remind us of the good times we have at this restaurant
• Create a special dinner just the way we like it
• Watch a sporting event in a place that is nostalgic and filled with fellow fans
• To see the friendly face of the owner
• Enjoy something made with unique craftsmanship, maybe an old family recipe with that special sauce!

None of this can be automated. The human connection is everything. Maybe their pizza costs a little more. Maybe the restaurant floor is a little grimy. Maybe we drive an extra mile to get there. But we don’t care because only this human being can deliver these “jobs to be done.”

In this context, we can evaluate the economics of human authenticity for our own careers. What job are people hiring you to do?

Copywriting? Basic illustrations? Editing? Yikes. You’re in DJ territory.

What is uniquely yours? What is your special sauce or unique “family recipe” that you bring to the marketplace?

This is why I’ve been yelling from the rooftops for years  — a strong personal brand is our only defense against the encroachment of AI. You need to deliver something that is uniquely you. What’s the problem you solve in a way that cannot be ignored?

Start now.

I am not a salesy person. This is not a salesy blog. But I do have a solution if you’re feeling vulnerable in this Ai turmoil.

For more than five years, I’ve been teaching a personal branding class that is the best of its kind. It’s taught live. It’s based on experience, research, and best practices. And it has absolutely changed lives.

It’s not too late to start working on your personal brand and focus on your unique value. Please consider my class, which can be found here.

In the end, it’s not about being human everywhere. It’s about being human where it matters most.

Need a keynote speaker? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

The post The economic value of human authenticity appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

Personal brand on TikTok?

Too short for a blog post, too interesting to ignore, here are some quick thoughts from the Schaefer-verse:

Is it really a personal brand on TikTok?

I’ve been teaching about personal branding for nearly a decade and probably have studied this subject as much as anyone on earth. But a new development has me flummoxed.

Increasingly, “personal brand” is becoming synonymous with performers on TikTok. I’ve seen this connection creeping in, but it slapped me in the face when I saw sessions on “personal brand strategy” at SXSW run literally by teen TikTok stars.

I’m not against teen TikTok stars—go for it. But is this building a personal brand … or achieving personal fame? There’s a difference.

The term “personal brand” was popularized by a 1997 Fast Company article called “The Brand is You” by Tom Peters. He stressed the importance of curating your own professional brand (just like a corporate brand) to succeed in business.

In my popular Personal Branding Master Class, I make the distinction between fame (like Kim Kardashian) and a personal brand, which means you have the

• presence
• reputation
• authority

… to make your professional dreams a reality. You probably won’t be famous (and don’t need to be), but you will be known in your industry, and that’s a HUGE advantage.

By the way, I think you can create a professional personal brand, instead of personal fame, on TikTok just like any other channel. I’ve seen some great marketing and business content there.

But today, TikTok’s meme-merchants with brand deals seem to be lumped together in the “personal brand” category by the popular media. I think that’s confusing. Am I splitting hairs?

I broke my own rule

In many of my books and speeches, I implore marketers to stop doing what people hate — interrupting, intercepting, and spamming, for example.

Here’s one thing that I know people hate: pop-up ads. The research is overwhelming. In 2014, Ethan Zuckerman, the inventor of the pop-up ad, wrote a lengthy apology for his creation in The Atlantic. He called it “The Internet’s Original Sin” and pleaded with businesses to “ditch them.”

And yet, I now have a pop-up on my site. One attentive reader called this irony to my attention, so I thought I would explain it.

Subscriptions to my blog had been stagnant. Long story short, I am fighting the math of large numbers (the bigger the email list, the more I need to grow to keep up with natural attrition).

I needed to upgrade my email strategy, and one recommendation was to add a pop-up to gently remind people to subscribe. I resisted the idea for years but finally succumbed.

I hope I have done this in a kind way. It only pops up after you have been on the site for a while, so it’s not on your face, and it only happens once. Bottom line, it worked.

So I have a “gentle pop-up!”

No sugar-coating

In my last roundup-style post, I had a number of sobering observations about AI and our future. One reader chastised me for not being more positive.

I do think positivity is important, but the truth is even more so. If I don’t tell you the truth, I am cheating you, deceiving you in the long term to make you feel good in the short term.

If you believe projections from Accenture, Deloitte, and McKinsey, between 40% and 70% of marketing tasks can be easily automated. My friend Paul Roetzer, who studies this more than anyone, ranted in his podcast this week that job displacement is coming fast, and he’s worried that nobody is prepared for it.

I do not think mass job displacement is inevitable, at least in the short-term. There are many financial, legal, ethical, and political hurdles for AI to overcome. And, as I wrote recently, I believe is always a place for human creativity.

But change is coming. That’s what’s real right now. We can’t see the truth through a sugar-coated lens. Let’s grow together based on truth and lift each other up along the way!

Word-of-mouth marketing is where it’s at

Word-of-mouth marketing (WOMM) is probably the most important marketing genre. But it has been relegated to a marketing sideshow because it’s difficult to execute and even more difficult to measure. And frankly, it’s just not as sexy as a celebrity-filled TV ad.

But I’m convinced in this deep fake age of mistrust, WOMM will emerge as an incredibly important strategy. It’s not that hard. Give people something cool to talk about!

It can be this simple. I dined at the wonderful Oasis restaurant on the Caribean island of Saint Martin a few weeks ago. At each place setting, there was a little card to give you a fake smile. Donning the fake smile was irresistible of course. Don’t you think kids would love this?

The simple word-of-mouth marketing idea becomes complete with unique stories on the back of the card. About 10% of the population are “super-sharers” who will take a cool story and share it with family and friends. That ignites WOMM. So, feed them the stories and it will spread.

Don’t overlook visual prompts like the smile card to remind people to talk about you.

What are the stories you’re sharing about your business? How are you getting them out into the world so your business becomes conversational?

Need a keynote speaker? Mark Schaefer is the most trusted voice in marketing. Your conference guests will buzz about his insights long after your event! Mark is the author of some of the world’s bestselling marketing books, a college educator, and an advisor to many of the world’s largest brands. Contact Mark to have him bring a fun, meaningful, and memorable presentation to your company event or conference.

Follow Mark on Twitter, LinkedIn, YouTube, and Instagram

Illustration courtesy Unsplash.com

The post Are you really building a personal brand on TikTok? appeared first on Schaefer Marketing Solutions: We Help Businesses {grow}.

Pilot Ernie Meeks is one of the new influencers building trust for brands

By Aaron Hassen, {grow} community member

The most difficult job in marketing today is determining how to effectively connect with our customers in a fractured media landscape. Fortunately, we have informative research and experts like Ed Keller to guide us on where to turn next … and that might include a surprising crop of new influencers.

Here’s a little story to set up the findings of Ed’s research.

I was reading the news, and an article from The Dallas Morning News jumped out at me. The article, The new social media influencer? Pilots and flight attendants, tells the story of Southwest Airlines pilot Ernie Meeks. Ernie was disappointed when his daughter, who had dreamed of following in his footsteps, considered dropping out of pilot school. Meeks was determined to change her mind, so he created videos for YouTube and Instagram highlighting his daily routines as a pilot.

After a year, his subscribers had grown to 57,300 on YouTube and 130,000 on Instagram … and his daughter decided to remain in pilot training school. But rather than quit, Meeks expanded into podcasting, and his show is now fully backed and sponsored by his employer, Southwest Airlines.

Why would an airline invest in an employee’s social media presence? How does this connect to modern marketing realities?  The answers are found in Ed Keller’s latest research, Unveiling Influence: A Suzy Report on The Impact of Creators on American Consumers’ Lives.

Known for his groundbreaking studies on Word-of-Mouth Marketing, Ed Keller is the CEO of the Keller Advisory Group and Executive Director of Market Research Institute International. Recently, Ed turned his attention to the new influencers and their impact on consumer behavior. If you’re like me, the findings will excite you.

27 million creators … and counting

The Keller Advisory Group worked with research firm Suzy to conduct a nationally representative study of over 1,100 consumers ages 16-54. The study focused on the impact creators and influencers have on consumer attention and purchasing behaviors. Keller had previously surveyed thousands of creators to get their points of view. This time, he decided to take a look at the other side of the equation, which of course is most interesting to brands and marketing and advertising professionals like me.

Keller defines a creator as someone who self-identifies as one and makes money creating. An influencer is someone who posts content on social media regularly and has a significant following. Often, these individuals are one and the same, so I’ll be using the terms interchangeably in this article.

The study estimates there are 27 million paid creators in the U.S. or 14% of all consumers ages 16-54. But all creators are not alike, and the breakdowns are important: 

• 12.22% (3.3m) are macro-influencers with 250k+ followers 
• 25.18% (6.8m) are mid-tier influencers with 50k – 250k followers
• 39.5% (10.4m) are micro-influencers with less than 10k followers. (This segment is reported to be the most influential)

Let’s move on to some of the key takeaways from the study.

Creators are far more influential than ads

According to the survey, 7 in 10 consumers follow creators, and 80% of those followers take some sort of action due to the influence of creator content. These actions are significant and include:

• visiting the brand’s website (55%),
• following the brand on social media (46%),
• recommending the brand to someone else (42%), and
• resharing the creator’s content (29%).

The best part? An eye-popping 43% of consumers report making a purchase! This meant that compared to advertising, creator content was 2.6 times more influential in purchasing decisions for those polled.

So, what exactly is driving these results? In a word, trust.

New influencers mean trust

The study finds that creator content outperforms traditional advertising across several key attributes.

Creator content is trusted 2.9 times more than advertising and is considered more exciting, unique, relevant, and shareable. Creator content also creates a stronger emotional connection, as 83% of consumers report that they like or love the creator’s content. These qualities appear to contribute to the higher effectiveness of creator content when influencing consumer perceptions and actions compared to ads. 

Brands follow the money

As Mark Schaefer highlighted in his recent article, How big is the creator economy? Three times larger than we thought, brand spending on influencers is surging.

Keller found that nearly 6 in 10 have an ongoing relationship with brands. In his latest survey, between 73% and 76% of consumers said that creator content influences their perceptions of both large, well-known brands and lesser-known emerging brands. So, it’s no coincidence that trusted brands like Amazon, Microsoft, Walmart, and Apple invest in creators.

Money is shifting away from advertisers and toward the new influencers. This year, brands will reportedly spend around $8.14 billion on sponsored social media content. According to Reuters, legacy advertising outlets like “Google and YouTube have faced competition for ad budgets from other online platforms, including Facebook, Instagram, TikTok and Amazon.com.”

The Washington Post notes that even “Well-known news outlets have seen a decline in the amount of traffic flowing to them from social media sites, and some of the money that advertisers previously might have spent with them is now flowing to creators.” The shift in investment from digital advertising to creators highlights the increased importance and effectiveness of creator partnerships for brands.

Ultimately, it’s clear that creators are funded because of their ability to create customers, which is why Southwest Airlines would eagerly support their pilot/creator. Creators are now the arbiters of consumer attention and trust, and brands are leveraging that trust to drive purchases. 

So, the next time you have your finger on the button ready to launch yet another ad campaign, consider the data from Ed Keller and invest in a social media word-of-mouth campaign with a micro-influencer instead. That’s certainly what I’ll be doing.

Aaron Hassen is a well-respected marketing leader, strategist, and hands-on practitioner. In 2004, Aaron began his career by launching an online and print advertising service, acquired by a competitor four years later. For the next 18 years, Aaron led marketing for emerging B2B technology companies helping them multiply their annual revenues. Today, Aaron runs AH Marketing, a full-service fractional marketing team focused on Go-To-Market strategy, demand generation, and brand development for B2B revenue leaders with little time or sufficient help to address their marketing challenges.

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