May 2006 Archives

Marketing minds like to break everything into different categories. While Economist are known for the phrase “on the other hand,” marketing people use “can be segmented into.” In hopes of segmenting the tools that marketing professionals use, the industry has dreamed up two new acronyms: ATL and BTL.

In a post on CREATIVE BAZAAR, Serge Zuev gives a basic explanation of the difference.

Basically marketers separate all the marketing efforts into 2 categories: (ATL) above the line and BTL (below the line).

ATL – all conventional marketing weapons like mass media brandwashing (tv spots, magazine ads, etc). It is not very targeted, extremely expansive and get less and less efficient nowadays. If you have TiVo and unsubscribe from the magazine because they cannot offer you anything you cannot find on the net – you get the idea.

BTL – is the rest of marketing actions, usually much less expensive, very targeted and easily monitored. Direct mail, insert media, interactive, guerilla marketing etc. “Below-the-line creates measurable results and ROI metrics, which are important to marketers under growing pressure to prove the value of their campaigns” said Bruce Biegel, managing director of Winterberry Group.

I like the explanation. The tools listed in the BTL section don’t ever seam to be considered as sexy or cool as those in the ATL sections, however the BTL tools offer more tailored and customer forced marketing. I have always recommended the BTL marketing tools, even before I knew of the classification, to all of my clients or friends. Some companies have the money to drop a nuke on their clients (ATL Marketing), but most business can only afford to hire a sharpshooter (BTL Marketing). Given the two choices, I would rather spend the money on an army of sharpshooters (BTL Marketing) that know how to make every shot count.

In the Wall Street Journal, Ellen Sheng today (5/3/2006) reported, “Sirius Satellite Radio Inc. reported sharp increases in subscribers and revenue but said its firs-quarter loss winded substantially, due mostly to stock-related compensation for shock jock Howard Stern. “ –Wall Street Journal, print addition. P. B3 “Sirius Reports a Wider Loss,” Ellen Sheng

I have been a fan, subscriber, and a previous shareholder of Sirius Satellite Radio. The reason why I have always been a fan of Sirius is the focus on content and service over technology. Their main competitor, XM Radio, is almost twice the size, has twice the technological capabilities, and has almost twice the financial backing; but XM focus most of its energy on securing customers through technology improvements versus content.

While XM has partnered with Sony Corp. to create a bunch of cool wireless receivers that can pickup Satellite on the move, Sirius has spent its time creating deals to make sure its content is superior to it competitor’s. Example of this is its high priced contracts with shock jock Howard Stern, the NFL, NASCAR, Martha Stewart, rapper Eminem, and extreme sports supper star Tony Hawk.

In sports there is a saying: “Offense wins games, Defense wins championships.” In the tech age of business, if propose this phrase: Tech wins awards. Service wins customers. While both tech and service are important, bet on the company that is focusing more on service.

The proof is this article.

Revenue for the quarter nearly tripled to $126.7 million from 43.2 million as Sirius continued to increase its subscriber base. It added 761,187 subscribers during the period, ending the quarter with 4.07 million. By contrast, larger rival XM Satellite Radio Holdings Inc. added 568,900 users in the same quarter. Sirius said it expect to have more than 6.2 million subscribers by year’s end, up from its previous estimate of just above six million. XM has said it hopes to have more than nine million subscribers by year’s end.

Sirius CEO Mel Karmazing has been criticized in the past for focusing so much on the content of his company and not enough on cost cutting and tech development. It looks like his focus on content is starting to pay off. I knew there was a reason I liked this company.

Ever have a great idea only to find yourself halfway into the project and realize that it was the dumbest idea ever imagined. Well, for the past week I have been in that prices situation. I am moving into a new apartment this week and decided that it would be a great idea to paint the entire apartment. At first glance, it seamed like it would be a piece of cake; I was wrong.

When I started the project last weekend, I had this grand flawless plan that would have me moved into a newly painted trendy, six room, rehabbed Chicago apartment in less than one week.

As reality strikes in the middle of painting- it was about 10:30 pm- I start cursing the person that imagined this GREAT idea. Unfortunately, the person that dreamed up
this idea, and created this mess, was the intelligent, imaginative and insightful I. Bummer. Well not every idea can be a winner.

The good news is that I came up with a great Master Card ad:

7 cans of paint: $149.83

15 rolls of tape, paintbrushes, 1 tarp, paint trays and rollers: $52.47

1 can of Goof Off: $7.00

Realizing why normal people hire professionals: Priceless

As soon as I manger to work my way out of this fantastic idea I will start posting some real articles. Check back sometime next week.