15.10.09

Crowdsourced branding, a disaster for Kraft?



Vegemite

When Kraft launched a spin-off of their uniquely Australian Vegemite spread, they turned to consumers for a name… and it was dropped four days later. Last week another name was announced, can Kraft make it right this time?

The year was 1923 when chemist Cyril Callister took out a newspaper ad announcing his new food invention, a salty yeast extract spread made from the by-products of beer manufacturing, and a £50 award for the best name. Similar to the British Marmite, the sticky brown paste has become a staple in the country, selling more than 22 million jars per year. Over 85 years later, Kraft Foods followed Callister’s plan to name a new milder variation—a Vegemite and cream cheese blend—with much less fanfare.

“Now all it needs is a name,” Kraft launched the new product with a TV commercial by JWT Australia.

iSnack 2.0

Kraft Foods launched an Australia-wide contest in June 2009, putting the product on grocery shelves with special “Name Me” packaging. Over 48,000 entries came in across the country during the three-month contest, (somehow) resulting in the name ‘iSnack 2.0.’
Announced September 26th during the 2009 Australian Football League Grand Final, the name was chosen by a panel of marketing and communication experts in an effort to market the longtime staple to the younger ‘iPod’ generation. Replacing the temporary packaging, the new labels were printed with the tagline: “iSnack 2.0, because it's the next generation Vegemite.”
The name was coined by Dean Robbins, a 27-year-old web designer:
It was all a bit tongue-in-cheek really, the ‘i’ phenomenon and Web 2.0 have been recent revolutions, and I thought the new Vegemite name could do the same.
Image
Left: Original Vegemite spread (Photo: StephenMitchell, Flickr); Right: Packaging for iSnack 2.0 and the “Name Me” contest (Photo: avlxyz, Flickr)

Cheesybite, Vegefail

Within days, criticism was heard all over Australia, especially among the product’s tech-savvy target market who took to YouTube and Twitter (making #Vegefail a trending topic). “The new name has simply not resonated with Australians. Particularly the modern technical aspects associated with it,” Kraft said in a statement on September 30th. The controversial name was discontinued only four days after its launch.
Our Kraft Foods storeroom currently has thousands of jars of the iSnack 2.0 named Vegemite. This product will be distributed around Australia, and will continue to be sold in supermarkets for months to come – until Australia decides upon a new name.
Nameless once again, Kraft scrambled to short-list another six names and let the public decide. Polling more than 30,000 people, Kraft announced the product’s newest name on October 7th: ‘Vegemite Cheesybite,’ which captured 36% of the votes (although many chose ‘none of the above’ and were not included in the vote).
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Left: Vegemite Cheesybite, Kraft’s third and (hopefully) last packaging for the new product; Right: Results from Kraft’s survey
The name ‘Cheesymite’ was never considered, due to its popular use for another cheesy Vegemite-based snack in Australia and New Zealand. However it has been reported the name Cheesybite might come with its own legalcan of worms (just what they need).
The new Cheesybite jars will replace the iSnack variation in the coming months.

What does this say about the brand?

Kraft assures us this is not a publicity stunt, “We are proud custodians of Vegemite and have always been aware that it is the people's brand and a national icon.” Regardless, the publicity has the remaining iSnack-branded jars flying off grocery shelves and making their way onto eBay as “rare collector’s items.”
Some have said this incident has damaged the Vegemite brand in Australia. No one can deny iSnack 2.0 was a terrible choice—it says nothing about the product, and even the thought of it makes anyone who’s ever used an iPod roll their eyes (who were these marketing “experts” that handpicked the name from over 48,000 entries, anyway?).
But after all this, one thing is very clear: Australians are passionate about the Vegemite brand (and that’s what every brand wants)

Scam Ad Crackdown: Are the Awards Shows Wussing Out?





Award shows are getting tough on scam ads, but is it tough enough? Especially if two recent scam ad policies mean different shows have very different rules for scammers

The DDB Brasil WWF ad that provoked new ad show policies.
The DDB Brasil WWF ad that provoked new ad show policies.


The Cannes Lions Advertising Festival and the Art Directors Club today released policies to deal with scam ads—work submitted to the shows without client approval or that only ran once in little-seen paid media outlets. Outlining how it will handle offenders, Cannes stated it will only ban the individual creatives responsible for the faked work from entering work in the future, not their agencies.
"We believe that banning agencies from entering on a wholesale basis is unfair on blameless individuals," the Cannes statement said. "There are many people who work in agencies who may not be involved with an erroneous entry and therefore should not be penalized." From there, the length of the ban will be determined on a case by case basis. Emails to determine just exactly how this statement differs from Cannes' previous submission policy were not returned.
The Cannes policy takes a decidedly softer position than that of One Show, which implemented new rules in September after DDB Brazil's incendiary depictions of the 9/11 attacks in its "Tsunami" ads caused public backlash. The print ad has received a One Show merit award that has seen been rescinded. (It's important to note that One Show and the British awards show D&AD are non-profit operations, while Cannes is not.)
One Show's harsher stance means a five year ban for agencies submitting ads made for fake clients, without client approval or ads that have only run once or during late-night TV. And for all instances of fakery, the responsible creative will be banned for five years, too.





The Art Directors Club scam ad policy does not include bans at all; it will only trumpet fake work to the other top shows, especially since its awards come early in the season. With entries often submitted to multiple show, the ADC will simply let the Andy, Cannes, Clio, D&AD, One Show and Webby awards know when it's found a fake.
"The decision was that we will disqualify the work," said ADC chief executive Ami Brophy, adding the show hasn't made a statement of this type before, but thought one necessary after recent controversies sparked by the likes "Tsunami." "With regards to banning, our decision is rather to promote the behavior we'd like to see. Our approach is to stand together with the other shows and we will do our best to search scam ads out." The ADC's statement also pointed to its "Playground" category, launched four years ago as the place for non client-approved ads. Ms. Brophy also notes that the ADC rules resemble D&AD's "name and shame" policy.
DDB is hoping to root out scams even before they get to the awards juries. DDB Worldwide chairman Bob Scarpelli re-circulated the network's ethics code and outlined that the multi-office creative council will redouble its scrutiny of awards submissions, according to people familiar with the matter. The review process will include more thorough and brand new screening methods for entries.
With renewed attention to scam ads and these new guidelines running the gamut of accountability, do creatives think that these new guidelines will actually work? Or that they go far enough?



BBDO's David Lubars
BBDO's David Lubars

David Lubars, BBDO North America chief creative and chair of the Cannes press and film juries, thinks even the strictest new rules are necessary. "It's the right thing to do," he said. "I think it'll be a successful deterrent. A lot of times scam ads are obvious, but for when it's not clear, these are good guidelines for jury members."

Conversely, Lars Bastholm, Ogilvy's chief digital officer and the 2009 cyber jury chair at Cannes, finds One Show's penalties too steep. "Five years banned for the ECD in question?" he said. "That could be the end of a career. You'd have a hard time getting an agency to hire you after that." Though, he does think the next scammer caught under these new guidelines will send a message to the creative community. "If someone somewhere submits a fake ad and it gets out, the repercussions will become clear," he said. "That's when people will get it."
Since careers can be made and now potentially lost as a result of awards, Rob Reilly, partner and ECD at Crispin, Porter + Bogusky and ADC's hybrid award chair for 2010, finds the shows' definition of "scam ad" too loose. "We need one sharply defined way to categorize fake work across all shows," he said.



Crispin's Rob Reilly
Crispin's Rob Reilly

"There isn't enough we can do to stop scam ads," Reilly said. "But what needs to happen is to determine what qualifies as a scam ad." Reilly points specifically to ads that only run once, which is an often used tactic for making ads created specifically for awards consideration eligible for entry. While the One Show has identified a scam as an "ad that has run once, on late-night TV, or only because the agency produced a single ad and paid to run it itself," other scam ad policies have not been as clear. Cannes, on the other hand, acknowledges in its statement that "there are many definitions of 'scam,' and the issue is rarely black and white." It simply specifies clients must pay for media for ads to be eligible.
"But what about virals, ads that you put up on YouTube to see if they generate interest?" Reilly adds.
Last month, during the Spikes Asia Festival in Singapore, Cannes Lions Chairman Terry Savage could not conceal his concern about the decision by One Show, and was openly seeking input from the top regional and global creative execs about where the Cannes Lions should draw the line for its three festivals--Cannes Lions, Spikes Asia and the Dubai Lynx award for the Middle East.
While Mr. Savage is opposed to scam ads, he also said he was wary of banning whole agencies from entering awards because of the misdeeds of a few bad apples. "There are a lot of good people out there who shouldn't suffer because of someone else's mistake."
Ironically, Singapore, the setting for the Spikes event, of which Cannes became a co-organizer this year, has had one of the world's worst reputations for producing scam work for over a decade — a sad fact that has helped build the reputation of some of the world's top creatives today.
The Dubai Lynx also suffered a major scandal this year when the Agency of the Year had to return its awards after bloggers uncovered that most of them had been won for scam ads.



----------------------
We in the middle east have our own share of scam ads and ghost ads.. and it's been kind of a trend or basic practice by highly awarded creative networks. some samples for your reference: 

  • -http://advertiser-in-arabia.blogspot.com/2009/08/mbc-is-busted-ripping-off-tv-ads-ideas.html 
  • -http://advertiser-in-arabia.blogspot.com/2009/06/more-crapwe-had-to-tear-down-to-re.html 
  • -http://advertiser-in-arabia.blogspot.com/2009/09/good-bad-and-ugly-in-financial-ads.html 
  • -http://advertiser-in-arabia.blogspot.com/2009/08/tattoo-yourselflebanon-impact-bbdo-is.html 
  • -http://advertiser-in-arabia.blogspot.com/2009/08/tattoo-yourselflebanon-impact-bbdo-is.html 
  • -http://advertiser-in-arabia.blogspot.com/2009/08/new-dimension-of-advertising-is-simply.html

Discount Bank turns on its green credentials by turning off.



Discount Bank - Israel - Dim Thinking
Discount Bank in Israel declared itself a ‘Green Bank’ but rather than have this as a meaningless soundbite it sought a practical, long-term way to make a difference to global warming. Its solution was to create stickers reminding people to switch lights off and save energy.
Empty skyscrapers with their lights left on at night, consuming vast amounts of unnecessary electricity, are an all too common sight. Discount Bank knew that by taking simple steps it could make a big difference to the environment. It was also aware, however, that many campaigns of this type are over and forgotten almost as quickly as they are implemented, so it wanted to leave a permanent reminder for its staff to think ‘green’.
A sticker was placed over every light-switch in the Discount Bank tower – and in a financial skyscraper, that’s a lot of light-switches. At the top of the sticker was written ON, at the bottom OFF and in the middle, GLOBAL WARMING. The message being that when you switch on the light, you switch on global warming; when you switch off the light, you switch off global warming.

In just one day, the Discount Bank tower became a green tower. Every single employee is now exposed daily to the strong connection between electricity consumption and global warming, and can, using one small finger contribute to the effort to alleviate global warming.


BRAND: Discount Bank

BRAND OWNER: Discount Bank

CATEGORY: Financial

REGION: Israel

DATE: Sep 2009

MEDIA AGENCY: TBWA Chiat Day



MEDIA CHANNEL

Category Breaker

FREEBORD: STREET ILLUMINATI

Crew of Freeborders take over an SF street to create a real life video game. http://www.freebord.com.

14.10.09

The" Israel" Brand


The Israeli Brand
The public relations (PR) industry has made exceptional use of the communications revolution. But for all the globalizing effects of multinational campaigns, many brands seem inextricably tied to their home country. Injecting products into foreign markets has, to a certain extent, acted as a driving force in the way nation-states are perceived internationally. Coke, Marlboro and Starbucks are inseparable from their provenance, and Brand America is intimately tied to its products. But consumerism alone doesn’t tell the story of how America is perceived in the world; military adventurism and moral exceptionalism undermine the feel-good aspects of consuming Americana. A nation’s brand is inextricably tied to its actions in the world.
Nations, like products, are perpetually re-branded for the international market. Israel’s Ministry of Foreign Affairs (MFA), for example, spends millions on targeted PR campaigns in a number of Western cities designed to shift associations away from war and occupation.
In March 2009 New York-based GfK Custom Research and British “place branding” consultant Simon Anholt released the global Nation Brands Index (NBI). It rates countries based on international perception of various categories, including tourism, investment, and immigration and governance. Germany ranked 1st overall, the UK 3rd, Canada 4th, the US 7th and China 28th. Iran placed 50th and Israel failed to make the top 50. While it’s tempting to dismiss nation branding as an example of the PR industry’s cynical commodification of the world, its assumptions can shed some light on Israel’s self-inflicted inability to re-brand.
Nation branding reveals the inherent contrivance of the concept of “nation” – a European invention born of a disastrous period of 15th-century religious warfare, leading to a centralization of violent power in the hands of a sovereign. Nationalism is a product of 18th- and 19th-century Romanticism, and every bit a human artifice. It helped radically reconfigure Western political identity toward our seemingly immutable system of nation-states. Israel came late to the game and has, from its beginnings, undertaken a conscious and very public project of constructing a national identity of godly strength. The pre-state Zionists dreamed of constructing the masculine “new Hebrew” of Palestine in contrast to the anemic “Galut Jew” of the diaspora – all at the price of creating the Palestinian refugee diaspora. Israel’s brand has suffered since.
Nation branding is also premised on the fact that no single actor can simply dictate political perception. People have to agree on, or be convinced of, political facts in order for them to become reality. Conscription and astronomical military spending project Israel’s tough guy identity to the world, leading to a dominant perception of violence and aggression. Go figure.
As Anholt admits, “Places can’t construct or manipulate their images with advertising or PR, slogans or logos … Places can only change their image by changing the way they behave.” Nation branding is doomed to failure unless action substantiates pomp.
• • •
In August 2008 the Israeli consulate in Toronto launched a one-year test market for a re-branding campaign. Roundly derided by human rights and peace groups, the campaign idealized Israel as a hub of high-tech research and development, cultural history and glitzy beach life. When asked directly about the goals of the campaign, Consul General Amir Gissin stated, “Israel’s branding process is first and foremost an internal process aimed at answering the question: Who are we as Israelis when we are at our best? The [Toronto] pilot was therefore not a PR campaign but rather an attempt to test the public opinion response to Israeli answers to this question.” While Mr. Gissin dodged questions about the impetus for the campaign, his public remarks are infinitely more candid. In September 2008 he told a group of supporters: “It’s not that our audience is ignorant. They feel they know too much … The Western media narrative is the poor Palestinians, Israeli tanks and Israeli guns. We’ve been portrayed that way for years.” He continued, “I offer you a framework for winning the public relations war.”
When Israel, with its influence on the North American media, complains of an overemphasis on its negative aspects, it proves the difficulty of reconstituting a national brand without real action. While portraying Israel as a single-issue country would betray a lack of knowledge, the fact is that in 2008 Israel spent $2,300 per person on its military – the highest in the world. When asked about this, Mr. Gissin rebutted, “[The] question reflects a school of thought that assumes that Israel is not allowed to be viewed outside the framework of the conflict. It is absurd. The conflict is a major part of Israel’s brand, and we are not hiding it. We believe, however, that Israel is more than the conflict, and we will continue to share information about that.” Perhaps.
Other than destroying southern Lebanon in the 1980s, clashing with Hezbollah and bombing Syria, Israel hasn’t fought anything close to a state army since 1973. So the world’s highest per capita military budget is arrayed toward the world’s longest-running occupation of an often indigent and defenseless population. The December 2008/January 2009 assault on the civilian infrastructure of Gaza was perhaps the clearest possible message Israel could have sent to the world.
It was easy enough to sell the assault to a society instilled with the belief that intergenerational war and occupation are normal. A Tel Aviv University poll showed almost 90% support for the slaughter, so Mr. Gissin’s worries about Israeli self-esteem seem misplaced. External perception, of course, has fared much worse. Spurred by international outrage, the United Nations has launched an investigation into war crimes and illegal use of weapons: the independent press and human rights groups (both Israeli and international) have brought serious allegations against Israel; soldiers who took part in the war are speaking out; and even the American State Department is beginning to understand the occupation as a detriment to Israel’s, and consequently its own, national brand. Bikini models and one of the world’s most accomplished high-tech sectors can’t grab the spotlight long enough to distract the world’s attention from the brutality of the occupation.
This hasn’t stopped the MFA from trying. In terms of Anholt’s branding criteria, human rights abuses cannot be taken completely out of the realm of international perception, but they might be superseded by generically sexier issues. Israel’s latest stunt to woo the Canadian audience – a Jewish hockey tournament in northern Israel – was dutifully covered in the mainstream press. That same week Amnesty International released Operation Cast Lead: 22 Days of Death and Destruction, a detailed and gruesome report of the various war crimes and crimes against humanity perpetrated by the Israeli state against Gaza’s civilian population. It received virtually no mainstream media attention, but grassroots media, civil society and academia have refused to let the issue go.
The offensive on Gaza will continue to affect Israel’s brand. As the American political scientist and coauthor of The Israel Lobby Stephen Walt wrote after Gaza: “The way a country regains the world’s admiration in the aftermath of misconduct is to stop doing it, admit it was wrong, express regret and make it clear that it won’t happen again. Restoring Israel’s image in the West isn’t a matter of spin or PR or ‘re-branding’; it’s a matter of abandoning the policies that have cost it the sympathy it once enjoyed. It’s really just about that simple.” The dissonance between Israel’s re-branding campaign and its consistently negative image shows that contemporary reality matters. Mr. Gissin isn’t convinced. When pressed on Anholt and Walt’s emphasis on concrete action, he referred to Israel’s negative brand not as a reflection of reality but as the result of propaganda: “Israel is not a regular brand in the sense that there is an active and powerful worldwide campaign aimed at hurting Israel’s image. Few countries or places need to cope with such an environment, and taking [these] statements at face value in regard to Israel is missing the bigger picture.” Given Israel’s place behind Iran on the NBI, it would seem that the bigger picture of the world’s largest, most enduring refugee population and a destructive 42-year occupation is exactly what shapes the Israeli brand.
Our political opinion may now be the target of the same sophisticated marketing techniques that produced corn-fueled obesity and SUVs, but the difference is that nation-states are irreducible past their human components: our perception matters. Sixty-plus years of co-opting social and behavioral psychology to ram products down our collective throat have yet to overwhelm our political or moral compasses. We are still able to judge nation-states by their deeds rather than by their spin.

Pharmaceutical Marketing




13.10.09

Volkswagen’s Viral Video Serie: The Fun Theory


In September, Volkswagen launched www.rolighetsteorin.se, an creative initiative to test if fun could change the behavior of people. The campaign has become a huge success in the last couple of days with a tremendous amount of views for the videos that Volkswagen subtly seed with this campaign.

volkswagen_funtheory
Read on for the full statistics on the campaign and my personal view on this already strong marketing case in social media.

Last Friday, Niels wrote the following summary, here on ViralBlog:
With this new campaign, developed by DDB Stockholm, Volkswagen turned a subway staircase in Stockholm, Sweden into a giant piano as part of their ‘Theory of Fun’ campaign. The effort is just one stunt that appears on the carmaker’s Rolighetsteorin.se website, which showcases efforts to get people to change by simply making things more fun. The Giant Piano clip got over 500,000 views on YouTube in just over two weeks.
The videos are aiming to change peoples lazy behavior by showing them the fun side of acting environmental responsible. As for the carmaker’s own contribution, “Volkswagen’s answer to the theory will be presented at a later stage on a separate website amongst other media,” says DDB Stockholm creative director Andreas Dahlqvist. “The site will display their whole range of environment technologies and cars—many, many fun ways to do something for the environment.”
Let’s take a look at the already launched videos:

Piano Staircase



The video received 1.200.000+ views in 4 days. Plus various copies with over 500.000 views. Minor detail: The original Swedish version - Pianotrappan - rolighetsteorin.se - “only” got 680.000+ views in 20 days.

The World’s Deepest Bin







This video received a bit less views, 88.000 views in 4 days. Minor detail: The original Swedish version - Världens djupaste soptunna - rolighetsteorin.se - “only” got 129.000+ views in 20 days.


Bottle Bank Arcade



About the platform

The platform bundles the videos and encourages people to submit their own ideas. The winner will be granted with a cash prize of 2500 euros. I sure do hope that Volkswagen promotes these actions and let people vote, share and encourage others with micro interactions. This way, the behavior change also comes from the people within.

Statistics on the videos

Lets take a look at the conversation market. What did the campaign do to the conversations? To check this out, we’ll have a look at Twitter.
Trendistic statistics on the word “piano”

It’s incredible, when you look at the statistics, you can see a minor trend on the word piano, just shortly after the launch of the videos. This means that people started to talk more about pianos then before the campaign. Next to all the regular conversations about pianos, a lot of the ones including a link direct to the advertisement page. Source: Twitter Search.
Trendistic statistics on the word “fun”
Another nice detail is that Volkswagen is being associated with fun a lot on Twitter. Looking at
these results, you can see that Volkswagen is being mentioned several times per hour with the word fun and a link to the campaign.

YouTube statistics on Piano Staircase

Unfortunately, the extended statistics have been disabled for both the Swedish YouTube videos, so we couldn’t find out whether these videos spread globally as well as the English ones. However, the English versions did show the extended statistics. Let’s check out the ones from the piano stairs video to see the popularity in a global perspective.
YouTube statistics on the video: viral growth
youtube-piano-stairs-rolighetsteorinse-the-fun-theory
Even though the image above is from such a short period, its still incredible to see the large growth in such a short time. Also the amount of ratings, comments and favorites show people like the video.
YouTube statistics on the video: global reach
youtube-piano-stairs-rolighetsteorinse-the-fun-theory-1
When you look at the global reach, you can see the video has worldwide popularity, which is an interesting fact. Humor and interests aren’t human aspects that have the same values on every person on this planet. It’s good to see the video has been liked in America, Australia and Russia.

Comparisation with Ray Ban

Earlier this year in April, I wrote about Ray-Bans success with their Never Hide campaign. The strong viral videos, starting with the videos of “Guy Catches Glasses With Face” from NeverHideFilms had a few strong elements that made it a viral success.
Looking at the aspects of the Volkswagen videos, it leaves no doubt that the Never Hide films gave some good inspiration to DDB Stockholm, the agency behind the films. The films are also not based on the core message of the brand, they could be a start of consistent line of communication, are highly entertaining, aren’t just about the product and could have been done by average Joe.
Could it be that Volkswagen is following Ray-Ban’s successful footsteps by creating successful, fun and creative videos to feed the entertainment market? I certainly love this campaign of Volkswagen and hope they’ll receive the viral success they deserve!
Make sure to also check out the article on Creativity-online.com, which includes an interview with the creative director from DDB Stockholm and take a look at the fun behind the scene photos on Flickr.
Sources: ViralBlog.com, Creativity-online.com.

The official launch of the new PS3

The campaign site, playface.jp will feature a collection of game expressions captured by the ‘Playface Caravan,’ a series of events touring Japan in which players can demo the new PS3 and have their emotions captured in 360º by a series of 20 cameras simultaneously. Participants’ playfaces are entered into the Playface Derby where individuals can earn points. At the end of the campaign, Japan’s top ranked playface with the most points will win PlayStation games for life.*
* Enough games to last a ”lifetime” means five 5,000 yen games a year for 100 years, which will be worth 2.5 million yen.
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VOTE FOR YOUR FAVOURITE PLAYFACE!!!
The out of home portion of the campaign will feature posters of 25 unique playfaces, highlighting Japan’s emotions through gaming. The posters will take over major Tokyo train stations at Shibuya, Harajuku, Shinjuku and Ikebukuro.
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12.10.09

Marketing on $700 a Year



Last month, Intuit, the personal finance software firm that owns Quicken, paid $170 million in cash for Mint.com, a two-year-old personal finance site with 1.6 million users. That corporate embrace comes after much frustration on Intuit’s part. At one point the company wrote Mint a letter demanding “substantiation and evidence” of the rival site’s rapid-fire growth. Compounding the vexation was the cost of acquisition for those consumers, whose numbers are currently growing by more than 130,000 each month: virtually nothing.

Donna Wells, Mint’s CMO and a former exec at Intuit, is a veteran marketer used to the big media budgets she had in previous jobs at Charles Schwab and American Express. At Mint, however, she may well represent a new breed of CMO who is spending very little on brand building and bypassing advertising in the process. Thanks to new social media and communications technologies, partnered with adept PR strategies, Wells showed that building a so-called Web 2.5 brand doesn’t need to cost much these days—and the experience is liberating.

“We built this brand on the cheap. In two full years at Mint, I spent what I would have spent in two days at Expedia,” laughed Wells, who was previously svp-marketing at the travel site. “Mint was my fourth startup, and the tools that are available to me now, even since my last startup in 2000, offer amazing reach and adoption through places like Twitter, Facebook, YouTube, MySpace and iPhone apps. It’s a phenomenal time for a marketer.”

Mint’s start kicked off with a well-read, popular blog—launched in March before the site’s product launch in September 2007—and key exposure when Mint launched at TechCrunch 40 and won top honors. Wells created a Facebook page where Mint now has more than 36,000 fans and attracted a following of 19,000 on Twitter. Free applications like WordPress power Mint’s blog while another free tool, the user-friendly Google analytics, lets staffers track site traffic. Mint does pay for some other off-the-shelf services for its site, spending all of $700 a year.

Wells estimates the marketing costs at Mint over the past two years to be around $2 million. That amount primarily includes salaries for the marketing staff which now numbers five, including herself, and out-of-pocket expenses like hiring an outside PR agency. She also experimented with search initially, spending about $50,000.

“The idea that you need a huge amount in marketing and advertising dollars is simply not true,” said Laura Ries, president, Roswell, Ga., consultants Ries & Ries. “That was a major fallacy in the dot-com boom where companies went out and spent millions and got no benefit. Companies like eBay and Amazon did it by being first at something, by standing for something and having a credible strong idea that generated the PR and word of mouth necessary to get into the minds of consumers.”

As a free money management tool, Mint obviously has a compelling appeal in the current economic climate. But Ries also noted the site’s quirky name and compelling blog, which in a world of forgettable corporate blogs won the award for best blog at the Online Media Marketing and Advertising awards last month. That communiqué reinforces an identifiable voice with the brand that initially attracted 20 and 30-somethings, Ries said, particularly in contrast to the older-skewing Quicken, with a less-defined image given the number or products associated with the brand.

Wells admits she will modify her marketing strategies as Mint goes more mainstream under Intuit but, even with new financial resources, vows to keep using the cheap tools that launched the brand and keep nontraditional media at marketing core.

Other creators of recent popular Web 2.5 brands share Wells’ reluctance to spend on advertising—and it’s not because they don’t have the money. Pandora.com founder Tim Westergren said his four-year-old Internet radio site expects to bring in $40 million in revenues this year, more than double that in 2008. But while he spent “maybe $100,000” on search in Pandora’s early days, he’s not interested in traditional marketing. Instead, he’s focused on customer service and bonding, no easy feat given the 35 million U.S. registered listeners to Pandora’s automated music recommendations. Westergren, a musician and composer, said a primary focus of the site’s marketing, and a major expense for the site, is a team of eight people who respond to every listener inquiry. In a busy month, Pandora’s “listener advocates”’ might deal with 30,000 e-mails, with topics ranging from new site features and new bands to complaints. Additionally, Westergren travels around the country talking to listeners at “town halls” held in coffee shops, community centers and bookstores. (He’s not just interested in what urban hipsters have to say—upcoming trips take him to places like Sioux City, Iowa, and Billings, Mont.) He said that while that might sound “old school,” it’s critical.

“Each town hall includes just a small number of listeners, obviously, but it’s a p
owerful cementing tool. They become ambassadors for you,” said Westergren, who cautioned about the need to take in the bad with the good. “In this day and age, it just takes a few enthusiastic people to do some damage to you on the Web; there are so many ways to evangelize.”

For his part, David Karp, the 23-year-old Internet entrepreneur who founded short-form blogging platform Tumblr, said more traditional marketing communications couldn’t achieve what his own team could do in viral product design at the nearly two-year-old site.

 “We did an experiment with outside PR, but we found people couldn’t explain it as well as we could,” he says. “The marketing is all on Tumblr’s site. We thought, ‘What features can we build, what design changes? How can we get visitors to further engage and share the experience?’ We always looked at the product as inherently viral and designed it that way. As it becomes more social with the Tumblr dashboard (which quickly lets users add other users to lists of friends), you can follow friends, publish and repost.”

 Last week, Jinni.com, a Pandora-like recommendation service for movies and TV, launched in public beta. The site’s co-founder, Yosi Glick, who’s clocked in time as a marketer at tech companies like Orca Interactive, said his lack of interest in advertising the new site strikes some acquaintances as odd. “‘How do you do zero-dollar marketing?’ People from the b-to-b environment find that intriguing,” he said. “Is it possible, they ask? It is indeed possible.”

Glick’s optimism about grassroots marketing may be premature. Still, sites like Jinni, along with Tumblr and Pandora, have all the advantages that accompany marketers who are the first in their categories. It’s a lot harder for others who later jump in and play catch up to the pioneers.

But even those companies with a head start like Amazon and eBay ended up using traditional advertising once they became dominant players and needed to protect their leadership status. So while marketers like Wells have launched successful sites on a dime, their experiences may still be the exception, not the rule. Advertising will remain a critical marketing support at launch—and thereafter, some observers contend.

“In general, you need more than one tool to launch and maintain a brand,” contended Allen Adamson, managing director of the New York office of Landor Associates. “If you’re the third one out there (in a category), you’re going to need more. Successfully doing it on a shoestring is not an average situation—it’s more like winning a lottery ticket.” 

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