We often talk about how the internet is changing marketing and distribution, but we often overlook just how fundamental the basic ways we do business are changing.
Internet tools like social networks and the web itself are forcing us to be more honest, open and ethical.
This occurred to me during the annual Cannes Lions International Advertising Festival a few weeks ago, where I was fortunate to go along and see how the advertising sector is dealing with challenges to their clients’ traditional marketing channels while a global financial downturn hits business.
Microsoft CEO Steve Ballmer put the worst case scenario of the world economy resetting to lower debt levels with marketing spend declining faster than GDP, as newspapers and magazines vanish at the same time consumers tighten belts.
Perhaps it was to be expected that Google CEO Eric Schmidt had the opposite view that Americans were too wedded to their credit cards to do anything else but spend.
The marketing bosses of Proctor & Gamble, Kraft and McDonalds had a very different outlook to either of the CEOs. They saw online advertising growing, while print and broadcast spending stays static – the most quoted statistic was the net occupies 20% of consumer’s time while only 7% of budgets are allocated to internet marketing.
A splash of cold water was from Kofi Annan and Bob Geldof who launched the “tck tck tck”, Time for Climate Justice campaign to get real results from the UN Copenhagen Convention in December. Their speeches were compelling and a reminder that some things are bigger than how much you spend online.
Back in the online world, Twitter co-founder Biz Stone gave an entertaining talk on how Twitter came about and some of the possibilities for making money from the service (charging for richer data) but the best social media talk was from Kevin Eyres, LinkedIn’s Managing Director for Europe.
Kevin’s key point is a business’s social media profile is just as much from what employees say on Twitter, Facebook and MySpace, as it is of customer’s comments and the efforts of the marketing team.
This is spot on and shows just how broad the risks and opportunities are for managers and entrepreneurs.
Modern management has to be honest and consistent – the days of hollow mission statements and empty commitments to customer service and equal opportunity are over.
If you don’t hold by your principles then your customers, staff and suppliers will rat you out to the wider world. If you do hold by them you’ll gain respect and true followers.
The final thing from the Cannes Festival was just how innovative and creative the world advertising industry is. While the prize winners were impressive there were many clever entries that changed the way you’ll look at marketing.
Luckily, most of them are online at the Cannes Lions website, so have a look at the speakers and get some inspiration from the entrants. Don’t copy them though as you’ll probably be dobbed in on Twitter.