Tuesday, 26 February 2008

Why Virgin Should Rule the Search World.

It is no secret that a fundamental part of achieving good placements in the organic search results in Google is to acquire good inbound links from friendly neighbourhoods.

For brands operating in multiple sectors, with different sub brands and divisions, this creates an interesting dilemma. Traditionally these subdivisions operate independently from one another and incentivised at a corporate level to compete for profitability, resource and budgets.

Virgin is one of the most noted global brands with these characteristics. The brand is globally recognised but there is little evidence of cohesion between the various subdivisions. Whilst this strategy may be effective at driving profitability, it is not helpful to the respective search marketing efforts of Virgin's sub brands.

One of the best tools for gaining a visual understanding of your relative neighbourhood is touchgraph. Below is their visual representation of the network.

Virgin clearly operates a hierarchical approach with in the centre and all other sub-brands linking back to the main site. I would hazard a guess that search marketing strategy is not managed at corporate level and there is nobody at Virgin that is overseeing the overall strategy for the group.

Some organisations that operate multiple brands do not want any association between the various brands. Examples would be Unilever that does not associate many of it's varied FMCG brands. Each of their brands has their own personality and I would imagine that there is no relationship between users of Lynx deodorant and Persil washing powder.

Virgin, however, use the same brand across the complete variety of products it offers. It would not be strange for a customer to see a Virgin Money link within the footer of the Virgin holidays site, especially as they cross-sell via offline marketing activity.

A more effective method would be to mesh the individual sites to create a network that is interlinked on multiple levels. Teletext have improved the organic search engine positions of many of their subdivisions by linking different brands within the Teletext family together. For example, features links to Teletext holidays in the footer of every page it's site. Whilst we all know that footer links are not as valuable as real contextual links, a small amount of value is passed for EVERY page of to Teletext Holidays. This results in a far tighter network:

Another question would be why an entrepreneur such as Sir Richard Branson has not been more involved in the online world, considering the potential for revenue generation.

Virgin sold The Trainline back in 2006 to a private equity group for good price of £131M. This was the first and best method of checking train times online and had a large and loyal user base. The growth of this user base dipped once National Rail launched their service but it remained a significant user base that the online startups of today would be very jealous of. By monetising this user base through selling train tickets, cross-selling into products and advertising, the trainline could have generated significant revenues for little cost. Private equity groups rarely acquire organisations unless they believe they stand to make long term profit.

The apparent lack of interest or cohesive search marketing strategy is good news for companies operating in the same sector as Virgin subdivsions. We can achieve relatively good search rankings without being overly concerned with the sleeping giant. However, when this giant wakes up there is significant potential for the Virgin brand to dominate the SERP's in any industry it chooses.

Monday, 11 February 2008

The Privacy Problem

The issue of privacy continues to be a major debate within digital marketing. In fact, as technology advances and more high profile mistakes are made, the argument is becoming increasingly polarised.

In the same day that I read about increasing concerns on the capture of public imformation, I also read an article about
the study of neurological patterns in order to gather more information about how people subconsciously react to different media.

One of the main questions is how much do advertisers actually want to know about their customers? Most advertisers will say that they will want to gather as much information as possible in order to make the best possible decisions on segmentation, targeting and to maximise marketing campaigns.

In reality, only a small amount of this information is used by most advertisers. The segmentation system used by our CRM department is provided by one of the biggest CRM providers in the industry, yet it allows segmentation on only a limited amount of customer criteria.

Companies may profess to wanting all this information from customers for future use but as all digital marketers know, consumer behaviour changes as rapidly as the technology that stimulates it, diminishing the quality of historical data.

The tangible benefits of providing information needs to be explicit in order for the prospect to provide consent for their personal information to be captured.

Tesco are one of the great CRM success stories. Information captured from customers translates into targeted savings in the form of discount coupons and more recently, benefits from relevant partners.

The ability to show more targeted adverts is not an adequate incentive for customers to provide personal information. Display advertising is still regarded as an interruption to lean forward interaction with the internet. It seems logical to advertisers, but on the whole, consumers have a reluctance to encourage advertising.

The irritance to users comes when advertisers gather a lot of information but don't appear to do anything with it. Consumers become suspicious of the advertisers intentions and wary of providing any more information.

In my opinion, organisations should have clear CRM objectives that require specific customer information in order to be fulfilled.

Providing these objectives are successful in delivering value to consumers, they will be more willing to provide personal information. Consequently, advertisers will reap the benefits of increased customer loyalty.

Tuesday, 5 February 2008

People who annoy you.

This now infamous clip from South Park sparked controversy in America due to it's racial context.

In fact, South Park writers, Trey Parker and Matt Stone created the episode with the intention of educating the small minded people that still regard race to be an issue, even today.

For me, not really a south park fan, this is one of the funniest clips in animation history.

So watch, laugh but please don't take offence.