YOU AIN'T GONNA LEARN WHAT YOU DON'T WANT TO KNOW

My Own Private Club *

"Honey, please go back to sleep."

This is a familiar refrain.  I hear it from my wife at the same exact time, nearly every single night.

2:32am.

Some people wake up at different moments in their sleep patterns. 

My precise "Groundhog Night" moment, collides into my psyche at, 2:32am.

I'm up.

I flip on my little alarm clock radio (keeping it super low) and have it tuned to 880 AM, so I can listen to "traffic and weather together on the 8's" over and over.

I can tell you what's happening on the Grand Central Parkway, the Throgs Neck Bridge, or if need be -- we can get crazy and talk about overnight repair work, on any major highway.

The weather report is also valuable -- as it prepares me for what shoes to wear.

This routine for me starts at 2:32am, and lasts for about 2-3 hours, every single night.

Why?

Why am I awakened?  Why 2:32am? 

I think I've figured part of it out.

You see, by all major accounts - my life has been pretty darn good.  Other than a few major scares, I believe that the totality of my existence has been, above average -- in regards to how I've been able to avoid major "personal stresses."

Healthy kids, good marriage, financially stable, not currently in a psyche ward, not on any kind of "mood/happiness" medicines......you see .....no major trauma.

So, why am I up at 2:32am?

I'm up at 2:32am, because my mind is wandering on business, and what's going to happen.....

Some things I can control -- but the issues that get me up at 2:32am are the mindbending questions, that I cant control. 

(Disclosure moment - @Lotame, we've exceeded our revenue and margin goals for the last 2 years.  My team has built a multi million dollar revenue business, with hundreds of happy clients, and we employ over 70 people currently, on our way to over 100 this year.....so, this post is NOT about anything but my thoughts, and feelings on "what gets and keeps me up at night.")

Issues that CAN BE, and CANNOT be controlled --- or more directly "understanding the precise challenge, and coming up with the correct decision/response."

I pride myself on making decisions.  One thing (I'm hopeful of) is that the one of the things people cannot say about me (and there is plenty of other things that can be said that are not as positive as this) is that I don't make decisions. 

If given a choice, good data, and some relevant guidance --- I WILL MAKE A DECISION.  I've known people that procrastinate, want to "sleep on it" -- will wait for consensus, and worst of all -- do nothing.

Not me.  Work with me, and you will get an answer --- a decision, feedback.

But, that comes with a price.

And, I pay it. 

The price for me, is a mindblowing, steady, consistent and tortuous gnawing -- at precisely, 2:32am.

Some questions that get me rattled:

1) Did we make the offer to the correct candidate?

2) Did we do everything we could to win that business, and present ourselves correctly in that new, 6 or 7 figure pitch?

3) Did we articulate correctly what we can do, and CANNOT do, to a new customer of our platform?

4) Are we sharing enough data and learning with our product management, and technology team to build the most dynamic features into our platform?

5) Can our sales team be doing more, and getting more deals?

6) Can I, AS THE LEADER, THE MANAGER, THE VOICE OF OUR COMPANY -- CAN I BE DOING MORE TO INSURE OUR SUCCESS? 

And, more often than not, out of all the others -- it's #6 that gnaws, cajols, and like a woodpecker next to my bed, gets my soul up at 2:32am.

Can I, AS THE LEADER, THE MANAGER, THE VOICE OF OUR COMPANY -- CAN I BE DOING MORE TO INSURE OUR SUCCESS?

I hit replay on conversations, that I BOTH -- DID, and DID'NT HAVE.

I replay instances where I made decisions, and when I did not make the right one.

Hundreds of daily interactions, in person, email, phone, text, IM -- all go through the filter of my life, at 2:32am.

Why am I writing this?  Why am I writing this -- am I sharing with the world that, getting up at 2:32am is abnormal -- is it weird, crazy, and worst yet -- portray a glimpse of my insecurity to the world, that this guy - gets up at 2:32am?

You betcha.

Being honest, with our people, and our clients is the most important trait we have.  It's one of the most integral parts of any company, before technology, mission, and value -- it's who you are, and what you are made of.

We do not have it all figured out, not by a longshot.  The odds makers can tell you better than I could the statistic of failed businesses -- and the rate of success/failure...it's staggering and humbling.  The chips are stacked against almost all small businesses before they ever open their doors......

We are not perfect.  We have a ways to go.

But, 2:32 is my place.  It's my place to think.  It's my place to review, to contemplate, -- and to hear "traffic and weather together on the 8's."

I will worry when I no longer get up at 2:32am.

That will be a sure sign, that it is time to move onto other challenges.

That has not happened yet, but I may be slowly transferring some of my anxiety, and ideas, and unanswered issues to those around me --- to bring them into the hallowed, 2:32am club.

"Honey, please go back to sleep."

"I'm trying dear, I'm trying......"

 

 

 

 

High and Tight

“What are you going to do if the ball is hit TO YOU?”

 

A coach named BO, yelling that continuously from behind the dugout fence.

 

This was a popular refrain growing up.  When I was playing baseball, the mantra of coaches, parents, and teammates, seemed to be the same….

 

“What are you going to do if the ball is hit TO YOU?”

 

Runners on 1^st and 3^rd, one out.   I am playing shortstop.

 

Now, there are quite a few possibilities that can happen, if the ball is hit to me…..it depends on the speed of the ball, where the runners are when I field it…..and, a few others.

 

But, the focus (and message) was on being prepared, and focused.

 

It wasn’t about the physical aspects of the game, it was on the mental side.   It was a coach telling his players to think about what they would do – what will you do with THE BALL, if it is hit to you.

 

What a lesson.

 

So many of these little tidbits of learnings happen when we are young, and we don’t even know that there is a valuable nugget of experience for our future, right in front of our eyes….

 

“ANDY – WHAT ARE YOU GOING TO DO IF THE BALL IS HIT TO YOU?”

 

 

In business, for most – the ball is hit to each of us, on a daily basis.   

 

But what happens when the ball is being hit to us, and the people around us are not on the same page – and worse yet, our teammates don’t have gloves, bats, or the mindset to play like us?

 

The people “around us” I am referring to could be co-workers, they could be peers --- but for many companies, they are the PROSPECTS you are trying to sell. 

 

In our world of digital media, the people “around us” I refer to are Advertising Agencies. 

 

Last week, John Ebberts of Adexchanger, asked me for my predications on 2011.   I kept it short and sweet.

 

“Major advertisers will begin the process of looking towards smaller, more nimble agencies, who are heavy in engineering, and creative talent – and less reliant on media planning and buying.  2011 will be the beginning of the trend of "smaller independent shops" taking away significant business from larger more established agencies and holding companies.”

 

 

Today in Digiday,  DJ Edgerton writes:

 

“For the most part, the typical agency business model still resembles a walled society in which the leadership continues to steadfastly defend its desire for omnipotent control over all facets of client services. In the days of push-messaging, this ability to control the message was paramount to client success and winning new business.

Those days are fading fast. The effectiveness and efficiency of this model are slipping away amid a convergence of forces from both sides of the table. Consumers are demanding greater transparency in their relationships with brands, while brand marketers face a critical mandate to evolve their strategies to stay ahead of new consumption models and consumer demands. The drive toward a two-way conversation has left most closed-loop agencies scrambling to figure out where they fit in.

As technology evolves at a breakneck pace, most traditional agencies find it virtually impossible to maintain the necessary skill set and agility inside the “castle” of a large holding company environment. This sluggish pace inherently makes it difficult to stay on the forefront of innovation. Even the most adroit agencies have a tough time achieving and maintaining expertise in all emergent technologies.”

 

 

Many vendors are selling into situations where the client cannot readily answer, “What are you going to do if the ball is hit to you?”

 

 

Big companies are going through the motions. They will tell you they know the world is changing……but the true question is, are they prepared to react to the change?

 

Did travel agents know the internet would effectively end their business?

Did the Yellow Pages Book see that more local queries and lookups are done on Google, and monetized --- and not done in a book?  (When was the last time you used the Yellow Pages book?)

Did AT&T move fast enough to understand how rapidly technology would change their long distance business?

 

 

I don’t know the precise answer to all of these questions of changes, but I do know that the ground rules have been altered, and they are changing so drastically that consumers and customers  --- are not going back.

 

As a prime example, at Lotame we have relied heavily on agency sales.  We have a team of dedicated professionals that sell agencies on our offering.   In 2009, nearly 80% of our revenue came from agencies.  In 2010, that changed to closer to 55%.   It is more than a trend, it's an alarm bell ringing in my head.

 

At the end of every campaign we run we put together a comprehensive report, and send it back to the advertising agency that gave us the business.  It is chock full of data and important insight – that can really show how much (or little) their advertising with Lotame moved a few key metrics.  The reports are typically anywhere from 3-10 pages long and completely customized. 

Here are 2 examples of learnings derived from a motorcycle and a technology company. 

 

Motorcycles

For a major American motorcycle manufacturer, a year-long campaign to drive Awareness and Purchase Intent was accompanied by a year’s worth of custom research and study, detailing who in their audience of Male 25+ motorcycle enthusiasts responded positively to the campaign and how the interests, actions, and attributes in the profiles of those men affected how they responded to campaign ads. That same study provides detailed insight—such as data showing that Men with interests in Business content were the most likely to change their minds about buying a motorcycle after seeing campaign ads—into how the campaign findings can be leveraged to improve next year’s campaign.

 

Technology

For one of the world’s largest technology companies, a promotion-based campaign targeted to Teachers and Parents showed new insight into how particular attitudes towards children affected campaign response—such as showing that teachers who did not want children of their own were less likely to participate in the campaign promotion—provided valuable knowledge for future campaigns.

 

What have we discovered in the past year?

 

That these valuable insights that we shared with our agency partners, were typically NOT shared with their clients. 

 

Why?

 

We covered off on key metrics, had kick off calls – and established what the success metrics and goals were.

 

Why would an agency NOT include data (or worse yet, in some cases our brand name) back to the client?

 

This has come to light for us, as we attend conferences, visit direct clients – and continue to grow.  We are getting an opportunity to meet and talk to the clients, and tell our story of -- "working on their business."

 

Here is what we’ve heard: (after we give a copy of the report we DID FOR THEIR BRAND to them)

 

“You sent this report to my agency, I have never seen it….?”

 

“I am sure pieces of this data were in the summary I received from the agency, but this is a great in depth analysis”

 

“Please send these reports to me directly. I shared this internally and it was tremendously valuable..”

 

“This type of report helps me build a case to acquire more money for digital advertising – and away from print and direct mail. I wish I had this when we were doing our 2011 budgets!”

 

Are agencies not equipped?

 

Do they not have the bat and gloves to understand what to do, “when the ball is hit to them?”

 

I fear not.  I think they WANT TO.  But, it’s a combination of talent, mission, control and NOT embracing change – that has led to this situation. 

I understand that agencies own the relationship.  They are tasked with filtering information and determining what's important, and whats not -- when it comes deciding what data to ask a client to digest. 

Agencies are launching trading desks and platforms to manage media buying and selling.  They want to own more of the digital landscape.

 

And, they should.

But my hope for 2011 is that Agencies ask for more than a response to an RFP. Ask for more than the latest "out of the box idea" -- ask from the publishing partners, more than "what's your Comscore index/rating."

Clients demand state of the art analytics and research.

Here are some questions that agencies should ask publishers as part of the planning process:

1) Will you dedicate a research person to analyze our data post campaign?

2) What success metrics will you judge and report on? (and optimize)

3) Can you run an "in banner" campaign for a short question/survey to judge lift on your inventory?  (not a 20 question survey)

4) Will you use 3rd party data to target, and if so -- what companies?

Business is changing.

We know agencies understand, and hopefully that trickles down to the planner, director and supervisor level.

"What are you going to do if the ball is hit to you?"

It's in play. 

Do you have a helmet, glove, and bat?

"Put me in coach....I'm ready to play."

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trends On My Carpet

 

“We need you to run the campaign for 2 weeks, please send us an IO, name your price, and get the campaign live asap.” 

 

I’ve heard this line before – and I knew it wasn’t kosher.

 

“Listen, do me a favor, my client has deep pockets, and if the campaign works --- WE HAVE UNLIMITED BUDGET to spend money with you.”

 

Now I know what I’m dealing with.

 

When anyone (and I’m not sure why this happens in online media more than anywhere I’ve ever been) says this line (regarding unlimited budget)……it’s time to, head for the hills.

 

My response at this point is,  “No problem.  We can have the campaign live by the end of the day.  I am sending you our wiring instructions, and as soon as you wire $250,000 into our bank account, I will have the campaign live within an hour. “

 

“Ugggh, let me get back to you…….”

 

I heard this TWICE this week.  Now mind you, I’m not sure if this signifies that a bubble is back, or if there are new players in our industry…….but -- trust me this is NOT a good signal.   I only had one of these types of calls in the past 12 months – and, now to get 2 in the same week…….well, that might signify a distressing trend.

 

I bet on trends.  I live on instinct, reading people, and situations…..in a way that I think is not typical.   I surround myself with analytical minds – people that think DIFFERENTLY than I do.  It has served me well.   You see, I know my weaknesses – and I’m smart enough to hire, and promote people who help me……to “round out” my deficiencies. 

 

I know when to bring issues to my team, and when not to.  These issues are not warranted to share with our sales team. 

 

But, the question arises for me – when do I share information with my team on “instinct and gut feel” about trends I see, so that I’m not a distraction --- or worse yet, a raving lunatic resembling Nostradamus? 

 

Our business of digital media is changing rapidly.  In a client meeting yesterday, the client said to me, “we cant keep up with the pace of change, and if we don’t keep up – we are in tremendous fear of falling so far behind our competitors --- it’s a catch 22, and we are making a bet to go with you, because we are going to HEDGE that you will keep us cutting edge.”  

 

Yet, I’m not sure that’s ENOUGH of a reason to go with us, to deploy our technology, and to use us.   You chose us, because of what? 

 

Did I do a good enough job selling our benefits, or is the client working with us, BECAUSE they are afraid of falling behind their competitors?  

 

Is it a compelling enough message that -- our prospects will turn into customers,  and will eventually sign on the dotted line, out of FEAR, rather than a business necessity?

 

Is this a trend,  and should I promote it?  Is FEAR a message that I want to be associated with? 

 

Now, this is where it gets tricky around instinct, and going with my gut.

 

Do I share this with our sales and marketing team?  Do I tell them about this interesting feedback, and compelling reason on why we closed this deal?

 

Will I become a distraction if our sales staff is out there pounding the payment, getting decent traction, (you could always be doing better) will I --  HELP our HURT what’s happening with our teams…..?

 

Will I confuse people?  

 

I’ve chosen to confuse.   I will err on the side of sharing. 

 

Trends, things I see in the marketplace, and feedback I get from customers NEED to be shared immediately.  They have become part of the culture.   They are part of our fabric .  It has helped us refine and define our products.  I’m hoping it is part of our secret sauce of success.  

 

Compartmentalized ideas, are like cold eggs.  They look good, but if no one eats them – they just sit there. 

 

I want to share with our team that the “unlimited budget days” are back.  Each of them, will get calls --- and I want them to NOT waste their time on them.

 

But, I won’t. 

 

Some things they need to learn on their own.  Some trends need to be picked up by individuals, rather than groups.

 

In 2007 Mark Zuckerberg turned down $1 Billion from Yahoo.  His company is now reportedly worth $35 billion.

 

A few weeks ago Groupon turned down between $5-6 Billon from Google.   Many of my friends said, “I can’t believe that Groupon turned down that deal, are they stupid?”  

 

My response was, “They (Groupon) have less than 1% market penetration and will do between $1-2 Billion in revenue this year, Google would have gotten a steal at $6 Billion – as that is 2-3X revenue…”

 

Cliff Lee turns down the Yankees, and a larger contract to play for the Phillies. 

 

In our business, our international revenue is taking off.   We are going to do more revenue overseas in Q4, than we have done in the first 3 quarters of 2010 combined, for our international business.  (not domestic)

 

Some trends are obvious, some are in the public eye – but, some need to be pieced together, like the improvisational weaving of a Turkish carpet.

 

And, I’m riding this carpet into 2011……with a smile.

Riffing on Distance, Part One

 

"Friendship is the diminishing of space between people."

I love that sentence.  It is a money quote from a book I just finished.  Its from Keith Richards, in his autobiography, "Life." He was talking about his various relationships with his band mates. 

I've done a poor job at maintaining good friends, and strong friendships.  My last 10 years of life, have been a collection of amazing experiences in the sphere of company building, and living comfortably with my immediate family. 

The sacrifice has been at the expense of the collection and bonding with my friends,  both old and new. 

"You are a mile wide, and an inch deep."

Yes I am.  When it comes to connections and acquaintances (and even family) I've failed miserably at the game of maintenance......and for that I cannot apologize.  I can commit to change, but it was a conscious choice that I made.

When does it change?

It changes now. 

Gratitude is defined as the "The state of being grateful; thankfulness."

Our company (Lotame) is filled with GREAT people.  We've got scientists, comedians, bar owners, fantasy football commissioners, ski patrol members, wine experts, accomplished playrights, cave divers, and MANY musicians, among our team...... 

I am constantly amazed by the sheer talent, and true passion that people around each of us possess, and we may not even be aware of it.   I think my term, and commitment to change - is around 2 key phrases, "awareness and gratitude."

Going back in time and repairing some friendships that I may have damaged in the past is not in the cards for me at this time.  It's a job that I will have to wait to do. (and maybe write a book about it, the way that Walter Green has done,  its called "This is the Moment"  -- and I'm reading it now.)

Walter's book is described this way:

This transformative work is about to take you on one man’s extraordinary journey of gratitude. Over the course of a year, Walter Green traveled throughout the United States (and even abroad) to visit 44 of the people who have significantly impacted his life at various stages—be it as a young man trying to find his way in the world, a businessman building his career and family, or a man who sold his company and found new meaning in mentoring and philanthropy. During these visits, Walter conveyed his profound gratitude in a purposeful and explicit way. He wanted to tell these men and women how much they mattered to him before anyone’s health or life was compromised and the opportunity was missed.

In this inspirational gem of a book, not only will you accompany Walter on his gratitude journey, but you’ll also find yourself greatly moved by all that resulted from these powerful encounters. And as you read, you’ll acquire the tools to create meaningful conversations with your own “road-changers,” no matter what your age or life circumstance. These individuals could be family members, friends, teachers, colleagues, counselors, or any number of others who have influenced you. Your expressions of appreciation will undoubtedly enrich your relationships with them . . . and will provide you with amazing insights into your own life as well.

I am reading this book now.....and completely in awe of Walter.  He inspired this concept for me -- of going public with my "friendship deficit disorder" - as a way of communicating what I WILL change........the question is when?

This past year, we lost my father in law.  John Klauber.  John was an enormous figure in my life, (and the lives of his wife, 3 daughters and 7 grandchildren).....

I never got to adequately tell him, just how much he meant to me.....and how I respected his accomplishments, his commitment to service --- and, his life.

He was my father-in law, and my friend. 

So, from time to time I will digress on this blog, and do a personal deep dive, or someone close to me....a friend, a co-worker, or a client.   I will archive my relationship with them, and let them "riff" on their uniqueness, in this world of vanilla ice cream......and Disney channel sameness.

I will try my best to diminish the space between me, and some key people.....and might even do it on this blog.

Rock on.

 

 

 

 

 

The Space Between Me

"So, when are you going to blog again?"

My tepid response, "I'm overwhelmed, simply put -- I'm lazy, and I never know what to write.....what to share, and what NOT to share."

"Just be yourself..."

"Ok, I will try, but first - I should lay out what I feel I would like the blog to evolve into....and SHARE."

You see, blogging is awesome.  It is a release.  It allows you to "yell into a canyon."  When constraints are removed, (and you feel like you can write about nearly anything important to you, without ramifications or backlash by peers, clients, or acquaintances) it is the equivalent of a therapeutic, "brain massage."

But, it is also HARD WORK.

I have friends (like Fred Wilson) who blog every day.  They pour their hearts out, and share wisdom and knowledge beyond anything I could ever imagine. 

I'm not that smart.  I can't write about the inner workings of much.....

I can share my thoughts on:

1) building a company

2) people

3) my passion in photography 

4) challenges to a business- and wins

5) pricing products and scaling a company 

6) identifying things I see that are RIGHT, and WRONG

#6 gets me in trouble.  I'm not shy.  But, opinions can get people in trouble, and alienate, and damage relationships.

In an effort to protect my company,  and protect people who have put their trust in me, I choose to do much less of #6 - and much more of #1-5.

So, here goes....and, thanks.