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Media Planning: The Ultimate Guide

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Media Planning: The Ultimate Guide

Today’s digital landscape is a competitive one. For any business to find success today, it must create and share media content (such as images, videos, written content, and podcasts) with its audience.

Publishing new media is how you boost brand awareness, engagements, conversions, and revenue for your business. Not to mention, media content helps you stand out from competitors.

Over time, though, it can become confusing to keep track of, plan, organize, distribute, and analyze all that media content.

The best way to combat these issues is through media planning.

Media planning has many moving parts, and the process can be difficult to get right.

By working through the media planning steps as well as implementing media planning templates, you’ll keep any media-related challenges at bay.

Benefits of Media Planning

Media planning aids with parts of content creation and distribution, including:

  • Getting to know your target audience on a deeper level so you can effectively reach them through your media content
  • Deciding which media channels and platforms on which you’ll share your content
  • Determining the timing and frequency of the media and content you publish and share
  • Keeping up with the latest media trends and technology
  • Sticking to your budget as you work to create, publish, and share high-quality and engaging media content
  • Conducting analyses to measure the success of your media planning process

Now that we’ve discussed the benefits of media planning, let’s review the steps in the media planning process so you can begin developing your business’s strategy.

As you work through the following media planning steps, keep in mind that how your business applies the results and conclusions derived from each step will be unique based on your audience and needs.

1. Conduct market research.

The first thing you’ll want to do when developing your media planning process is conduct market research. Market research will allow you to tailor the content you create and the media plan you implement to your target audience and customers.

Start by creating (if you haven’t already) and studying your buyer personas as well as developing an understanding of who your target audience and current customers are.

With this information, you can determine what media will reach, resonate with, and convert your audience. Additionally, it’ll help you decide what platforms and channels through which to share your content.

Featured Resource: HubSpot’s Market Research Kit + Templates

market research kit cover imageDownload the Kit

2. State your media planning objective.

When developing your media plan, keep a goal (or a few) in mind to help you effectively navigate the process. Moreover, goals can help you know what content types and platforms you can say “no” to.

Here are some examples of media planning objectives you might have:

  • Strengthen cross-team collaboration (e.g. content, graphic design, animation, video, blog, social media) while creating and sharing media.
  • Enhance and streamline the publication and distribution processes for all media.
  • Improve media distribution timeline to ensure our content is shared efficiently so it’s relevant to our target audience.
  • Amplify the success of our media content by allowing for ample time to analyze its impact and reach our audience.

For instance, say you’re looking to create a media plan for your Facebook and Instagram social content. Your objective may be to streamline the content creation process in a timely fashion and then schedule posts on both platforms in advance.

This way, you ensure your posts are relevant to your audience so you can boost engagement and stay top of mind.

3. Create your media plan using a template.

Now it’s time to make your media plan, but before jumping into templates, let’s go over what exactly a media plan is.

It’s not enough to simply do the planning and then assume everyone else is on the right page. You need to outline your strategy into a media plan document, you’ll be able to ensure alignment on your team and keep all parties accountable.

Other media plans are standalone strategies that detail how organizations plan to leverage media (written, video, audio, etc.) to connect with followers and customers.

Media planning templates ensure you stay efficient and effective while working on all aspects of your media content. They keep your media content organized while publishing and sharing it among your audience members.

Due to the variety of templates available for different types and parts of the media planning process, the templates you incorporate will be unique to your business. Don’t be afraid to experiment with or combine different templates.

For example, if your business is looking to create a media plan for your Facebook and Instagram social media, you might choose to implement a social media calendar template.

This type of template will help you coordinate your content across both channels, boost engagement, and improve productivity among your team members — and therefore, achieve the objective you set in step two.

4. Implement your media plan.

Ensure all parties who should be aware of the plan have the necessary details to help you execute accordingly.

Additionally, share the contact details of the media-planning point person at your company in case anyone has questions or comments.

To get a better understanding of what I mean, let’s refer back to our example in the above step about your social media plan for Facebook and Instagram.

If you implement a social media calendar template as part of your media plan, ensure everyone who will be working on or creating the content and publication schedule for both platforms has access to it.

5. Evaluate your success.

Whether your media plan revolves around individual posts on Instagram or a month-long, company-wide campaign, be sure to measure the success of your plan.

Ask yourself and your team questions like, “Did this media plan help us achieve our specific goals?” and “Did the media planning templates and tools we used add value to our media creation and publication processes?”

The way you evaluate your media plan’s success should be directly tied to your business’s specific goals regarding your media and content, the teams who create the media, and the value you hope to derive from the media (e.g. boost conversions, engagements, revenue, etc.).

Let’s look back at our example from above one last time. Think about whether or not your social media content plan and the calendar template you implemented have helped you reach your target audience and achieve the objective you set.

Ask yourself whether or not your media plan helped you boost engagement on the social platforms you focused on as well as collaborate and coordinate more effectively to increase team-wide productivity.

What to Consider for Your Media Planning Strategy

There are a few additional things to consider when crafting your media planning strategy.

First, what’s your media planning budget?

Media Planning Budget

If you’re aiming for free media, you can disregard this question. But if part of your media planning involves media buying (as we discussed above), you’ll need to sit down with your marketing leadership to understand what funds you have to work with.

Set this budget before you start researching platforms and creating content. You don’t want to start formulating a campaign that you can’t afford down the road.

Second, consider the key messaging points you want your media to communicate.

Media Planning Messaging

You don’t have to pre-write all your media content, per se, but you should establish the main themes at the beginning so all media is consistent and on theme.

These messaging points will come from your audience research and may also influence what content types and platforms you pursue, so be sure to establish these early on.

With these points in mind, let’s walk through how to create a media plan of your own.

How to Create a Media Plan

1. Target your buyer personas.

As a marketer, you don’t want to advertise to just anyone. You want to attract the type of buyer that has interest in the media you’re creating — otherwise known as your buyer personas.

A buyer persona is a semi-fictional representation of your ideal customer based on market research and real data about your existing customers.

When you know exactly the type of buyer you need to target with your media plan, you’ll be able to attract the most valuable customers to your business.

When making your buyer personas, center them around these important attributes:

  • Demographics: Age, income, location, or identity
  • Background: Job, career path, and lifestyle
  • Identifiers: Communication preferences and social media platforms
  • Goals: Primary, secondary, personal and professional
  • Challenges: Their roadblocks preventing them from achieving their goals

2. Define your SMART goals.

You want to write out SMART goals for your media plan. The SMART acronym (Specific, Measurable, Attainable, Relevant, Time-Bound) is a framework that will enable you to better track and drive greater impact from your proposed plan.

It’s important to determine these goals before jumping into your work so you have a media plan that sets a clear direction for you and your team members, and ensures you’re able to celebrate the wins when they occur.

Some examples of SMART goal-setting in media planning could look like:

  • Specific: “We want to generate a greater number of qualified leads for my business.”
  • Measurable: “We want our media plan to gain my business 2,000 followers across Twitter, Metaverse, and Instagram.”
  • Attainable: “We previously reached 70% in customer engagement online over the past quarter, so we’re aiming for 75% in the next.”
  • Relevant: “We want to achieve more positive customer engagement to better the brand’s reputation and gain more fans.”
  • Time-Bound: “We want our media plan to gain my business 2,000 followers in the next three months across Twitter, Metaverse, and Instagram.”

Once you’ve determined your goals, you can begin looking at resources to assist you in reaching them.

3. Find the media planning tools best suited for you.

We talk in further detail later in this post about some amazing media planning templates your business can use, but there are software tools that can do some of the heavy lifting for you.

To draft, plan, schedule, and collect conversion analytics, your business could benefit from the HubSpot Marketing Hub.

Or if you still want to explore more options, we have a list of 12 essential media planning tools for you to use.

4. Analyze historical data.

You have to know where you began before you can start going forward, look back at your previous media planning strategy and analyze its impact and reach.

For example, if your business was already on Instagram, check your business page insights to see just how far you got on your old posting schedule and content. Look at the posts that got the most engagement, the time period you had the most traffic, and what content helped to turn prospects into customers.

Make note of the effective elements of your previous strategy and let that drive some of your brainstorming for your new media plan.

5. Choose your media mix.

It’s important that you are up to snuff on the most popular marketing channels, along with your buyer personas preferred ones.

According to the 2021 State of Marketing Report, 1,000 global marketing professionals believe that the top marketing channels are:

  • Email Marketing
  • Video Marketing

You want an omni-channel media plan to reach your target audience where they are, and by researching your buyer personas most frequented channels, and exploring new channels, you can decide upon the right mix for you.

6. Put your media plan into action.

As you conduct your media plan, track your insights and see how you’re doing in comparison to your SMART goals.

Also, understand that you can adjust your plan as necessary over time. Marketing is a rather volatile industry and knowing when to change your approach is key.

Now that you know what it takes to create a plan, let’s review some resources available to simplify the media planning process.

Media Planning Templates

There are a plethora of media planning templates available online that you can purchase or download for free. The great part about using media planning templates is that you can customize and tailor them to your business’s specific needs and goals.

Depending on the media software your business uses, such as HubSpot’s (free) CRM, Marketing Hub, or Sprout Social, there may be customizable planning templates included (similar to this menu of options from HubSpot).

You may also elect to create templates on your own with the help of Google Sheets.

Either way, how you choose to implement and use media planning templates will be unique to your business and needs — so don’t be afraid to modify your templates over time as your goals evolve or audience grows.

Free Media Planning Template [Download Now]

free media planning template hubspot downloadDownload this Template

Types of Media Planning Templates

To help get you started, here’s a list of common types of media creation and planning templates. (Click the links to be directed to an associated template resource.)

You might use one or several media templates based on your needs. Remember, there’s no right or wrong answer to which template you should use — it’s about preference and what works best for your business.

  • Use a media planning template to organize your paid media efforts and expenses in one visual location.
  • Use a social media strategy template to align your media content with your audience in a way that provides value for your business.
  • Use a social media calendar template to customize a timeline for when you’ll share your social media posts in a simple, organized, manageable, and effective format.
  • Use an editorial calendar template to plan and optimize all of the marketing content you’ll publish and share including blogs, social media, and campaigns.
  • Use a blog post template to simply fill-in-the-blanks and begin writing engaging, relevant, and well-optimized blog content for your audience (all while avoiding writer’s block!).
  • Use an ebook design template to take the guesswork out of how to make your ebook professional, eye-catching, and beautiful all while saving yourself valuable time.
  • Use an infographic template in Powerpoint or Illustrator to quickly customize the way you present data, share insights, and promote offers in a way that looks and feels professional.
  • Use an analytics and reporting template for Excel, PowerPoint, and Google Drive to make the processes of pulling, organizing, and sharing data simple no matter which metrics you track.
  • Use a budget template to manage and review your spending and budget with Excel or Google Sheets.
  • Use an advertising template to help you plan and manage advertising campaigns in a way that’s sure to convert audience members into leads and customers.

We’ve spent a lot of time discussing the ins and outs of media planning, there’s another side that can help marketers on the job — media buying. Let’s get into it.

Media Planning and Buying

Media planning and media buying are closely related and work in tandem with one another. Depending on the size of your business and your budget, your team members who plan your media may also handle the media buying process.

So, what makes these processes unique?

Well, media planning focuses on the strategy behind the media content that’s created, published, and shared among your customers and target audience. The media referred to here is all-encompassing, meaning it doesn’t always include paid ads and paid content.

This is where media planning and media buying differ.

What is media buying?

Media buying is related to paid media — whether that means your business is buying campaign or ad space on various channels, paying to share targeted campaigns and ads, or negotiating with media vendors.

In a world where your business can create and share media and successfully reach your audience for free, media planning can happen without media buying.

However, media buying requires media planning. (It’s like that “a square is a rectangle, but a rectangle is not a square” lesson that baffled us all in elementary school.)

Media planning sets the tone and direction for the buying that needs to occur. Once ad space is purchased or content distribution plans have been negotiated, there needs to be a strategy (or media plan) for getting that media to your audience and customers.

Begin Your Media Planning Process

Media planning is an integral part of your business’s ability to successfully create, publish, and share media content. It’s how you streamline cross-team communication and collaboration around your media as well as ensure it’s shared with your audience in a timely fashion.

So, work through the media planning process steps above and choose which templates you’ll use to begin reaching and converting more audience members.

Editor’s note: This post was originally published in February 2020 and has been updated for comprehensiveness.

paid media template


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Intro to Amazon Non-endemic Advertising: Benefits & Examples

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Intro to Amazon Non-endemic Advertising: Benefits & Examples

Amazon has rewritten the rules of advertising with its move into non-endemic retail media advertising. Advertising on Amazon has traditionally focused on brands and products directly sold on the platform. However, a new trend is emerging – the rise of non-endemic advertising on this booming marketplace. In this article, we’ll dive into the concept of non-endemic ads, their significance, and the benefits they offer to advertisers. This strategic shift is opening the floodgates for advertisers in previously overlooked industries.

While endemic brands are those with direct competitors on the platform, non-endemic advertisers bring a diverse range of services to Amazon’s vast audience. The move toward non-endemic advertising signifies Amazon’s intention to leverage its extensive data and audience segments to benefit a broader spectrum of advertisers.

Endemic vs. Non-Endemic Advertising

 

Let’s start by breaking down the major differences between endemic advertising and non-endemic advertising… 

Endemic Advertising

Endemic advertising revolves around promoting products available on the Amazon platform. With this type of promotion, advertisers use retail media data to promote products that are sold at the retailer.

Non-Endemic Advertising

In contrast, non-endemic advertising ventures beyond the confines of products sold on Amazon. It encompasses industries such as insurance, finance, and services like lawn care. If a brand is offering a product or service that doesn’t fit under one of the categories that Amazon sells, it’s considered non-endemic. Advertisers selling products and services outside of Amazon and linking directly to their own site are utilizing Amazon’s DSP and their data/audience segments to target new and relevant customers.

7 Benefits of Running Non-Endemic Ad Campaigns

 

Running non-endemic ad campaigns on Amazon provides a wide variety of benefits like:

Access to Amazon’s Proprietary Data: Harnessing Amazon’s robust first-party data provides advertisers with valuable insights into consumer behavior and purchasing patterns. This data-driven approach enables more targeted and effective campaigns.

Increased Brand Awareness and Revenue Streams: Non-endemic advertising allows brands to extend their reach beyond their typical audience. By leveraging Amazon’s platform and data, advertisers can build brand awareness among users who may not have been exposed to their products or services otherwise. For non-endemic brands that meet specific criteria, there’s an opportunity to serve ads directly on the Amazon platform. This can lead to exposure to the millions of users shopping on Amazon daily, potentially opening up new revenue streams for these brands.

No Minimum Spend for Non-DSP Campaigns: Non-endemic advertisers can kickstart their advertising journey on Amazon without the burden of a minimum spend requirement, ensuring accessibility for a diverse range of brands.

Amazon DSP Capabilities: Leveraging the Amazon DSP (Demand-Side Platform) enhances campaign capabilities. It enables programmatic media buys, advanced audience targeting, and access to a variety of ad formats.

Connect with Primed-to-Purchase Customers: Amazon’s extensive customer base offers a unique opportunity for non-endemic advertisers to connect with customers actively seeking relevant products or services.

Enhanced Targeting and Audience Segmentation: Utilizing Amazon’s vast dataset, advertisers can create highly specific audience segments. This enhanced targeting helps advertisers reach relevant customers, resulting in increased website traffic, lead generation, and improved conversion rates.

Brand Defense – By utilizing these data segments and inventory, some brands are able to bid for placements where their possible competitors would otherwise be. This also gives brands a chance to be present when competitor brands may be on the same page helping conquest for competitors’ customers.

How to Start Running Non-Endemic Ads on Amazon

 

Ready to start running non-endemic ads on Amazon? Start with these essential steps:

Familiarize Yourself with Amazon Ads and DSP: Understand the capabilities of Amazon Ads and DSP, exploring their benefits and limitations to make informed decisions.

Look Into Amazon Performance Plus: Amazon Performance Plus is the ability to model your audiences based on user behavior from the Amazon Ad Tag. The process will then find lookalike amazon shoppers with a higher propensity for conversion.

“Amazon Performance Plus has the ability to be Amazon’s top performing ad product. With the machine learning behind the audience cohorts we are seeing incremental audiences converting on D2C websites and beating CPA goals by as much as 50%.” 

– Robert Avellino, VP of Retail Media Partnerships at Tinuiti

 

Understand Targeting Capabilities: Gain insights into the various targeting options available for Amazon ads, including behavioral, contextual, and demographic targeting.

Command Amazon’s Data: Utilize granular data to test and learn from campaign outcomes, optimizing strategies based on real-time insights for maximum effectiveness.

Work with an Agency: For those new to non-endemic advertising on Amazon, it’s essential to define clear goals and identify target audiences. Working with an agency can provide valuable guidance in navigating the nuances of non-endemic advertising. Understanding both the audience to be reached and the core audience for the brand sets the stage for a successful non-endemic advertising campaign.

Conclusion

 

Amazon’s venture into non-endemic advertising reshapes the advertising landscape, providing new opportunities for brands beyond the traditional ecommerce sphere. The  blend of non-endemic campaigns with Amazon’s extensive audience and data creates a cohesive option for advertisers seeking to diversify strategies and explore new revenue streams. As this trend evolves, staying informed about the latest features and possibilities within Amazon’s non-endemic advertising ecosystem is crucial for brands looking to stay ahead in the dynamic world of digital advertising.

We’ll continue to keep you updated on all things Amazon, but if you’re looking to learn more about advertising on the platform, check out our Amazon Services page or contact us today for more information.

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

The very first commercial advertisement was shown on TV in 1941. It was only 10 seconds long and had an audience of 4,000 people. However, it became a strong trigger for rapid advertising development. The second half of the 20th century is known as the golden age of advertising until the Internet came to the forefront and entirely transformed the advertising landscape. The first commercial banner appeared in the mid-90s, then it was followed by pop-ups, pay-by-placement and paid-pay-click ads. Companies also started advertising their brands and adding their business logo designs, which contributes to consumer trust and trustworthiness.

The rise of social media in the mid-2000s opened a new dimension for advertising content to be integrated. The marketers were forced to make the ads less intrusive and more organic to attract younger users. This is how native advertising was born. This approach remains a perfect medium for goods and services promotion. Let’s see why and how native ads can become a win-win strategy for your business.

What is native advertising?

When it comes to digital marketing, every marketer talks about native advertising. What is the difference between traditional and native ones? You will not miss basic ads as they are typically promotional and gimmicky, while native advertising naturally blends into the content. The primary purpose of native ads is to create content that resonates with audience expectations and encourages users to perceive it seamlessly and harmoniously.

Simply put, native advertising is a paid media ad that organically aligns with the visual and operational features of the media format in which it appears. The concept is quite straightforward: while people just look through banner ads, they genuinely engage with native ads and read them. You may find a lot of native ads on Facebook, Twitter and Instagram – they appear in the form of “in-feed” posts that engage users in search for more stories, opinions, goods and services. This unobtrusive approach turns native ads into a powerful booster for any brand.

How does native advertising benefit your business?

An average Internet user comes across around 10,000 ads a day. But even physically, it is impossible to perceive this amount of information in 24 hours. So, most of them use adblockers, nullifying all efforts of markers. Native ads successfully overcome this digital challenge thanks to their authenticity. And this is not the only advantage of native advertising. How else does your business benefit? Here are just a few major benefits that prove the value of native ads:

Better brand awareness. Native ads contribute to the brand’s visibility. They seamlessly blend into educational, emotional, and visual types of content that can easily become viral. While promotional content typically receives limited shares, users readily share valuable or entertaining content. Consequently, while you incur expenses only for the display of native ads, your audience may go the extra mile by sharing your content and organically promoting your brand or SaaS product at no additional cost.

Increased click-through rates. Native ads can generate a thrilling click-through rate (CTR) primarily because they are meticulously content-adaptable. Thus, native ads become an integral part of the user’s journey without disrupting their browsing experience. Regardless of whether your native advertising campaign is designed to build an audience or drive specific actions, compelling content will always entice users to click through.

Cost-efficient campaign performance. Native advertising proves to be cheaper compared to a traditional ad format. It mainly stems from a higher CTR. Thanks to precise targeting and less customer resistance, native ads allow to bring down cost-per-click.

Native ads are continuously evolving, enabling marketers to experiment with different formats and use them for successful multi-channel campaigns and global reach.

Types of native advertising

Any content can become native advertising as there are no strict format restrictions. For example, it can be an article rating the best fitness applications, an equipment review, or a post by an influencer on a microblog. The same refers to the channels – native ads can be placed on regular websites and social media feeds. Still, some forms tend to be most frequently used.

  • In-feed ads. This type of ad appears within the content feed. You have definitely seen such posts on Facebook and Instagram or such videos on TikTok. They look like regular content but are tagged with an advertising label. The user sees these native ads when scrolling the feed on social media platforms.
  • Paid search ads. These are native ads that are displayed on the top and bottom of the search engine results page. They always match user’s queries and aim to capture their attention at the moment of a particular search and generate leads and conversions. This type of ad is effective for big search platforms with substantial traffic.
  • Recommendation widgets. These come in the form of either texts or images and can be found at the end of the page or on a website’s sidebar. Widgets offer related or intriguing content from either the same publisher or similar sources. This type of native ads is great for retargeting campaigns.
  • Sponsored content. This is one of the most popular types of native advertising. Within this format, an advertiser sponsors the creation of an article or content that aligns with the interests and values of the platform’s audience. They can be marked as “sponsored” or “recommended” to help users differentiate them from organic content.
  • Influencer Advertising. In this case, advertisers partner with popular bloggers or celebrities to gain the attention and trust of the audience. Influencers integrate a product, service, or event into their content or create custom content that matches their style and topic.

Each of these formats can bring stunning results if your native ads are relevant and provide value to users. Use a creative automation platform like Creatopy to design effective ads for your business.

How to create a workable native ad?

Consider these 5 steps for creating a successful native advertising campaign:

  • Define your target audienceUsers will always ignore all ads that are not relevant to them. Unwanted ads are frustrating and can even harm your brand. If you run a store for pets, make sure your ads show content that will be interesting for pet owners. Otherwise, the whole campaign will be undermined. Regular market research and data analysis will help you refine your audience and its demographics.
  • Set your goals. Each advertising campaign should have a clear-cut objective. Without well-defined goals, it is a waste of money. It is a must to know what you want to achieve – introduce your brand, boost sales or increase your audience.
  • Select the proper channels. Now, you need to determine how you will reach out to your customers. Consider displaying ads on social media platforms, targeting search engine result pages (SERPs), distributing paid articles, or utilizing in-ad units on different websites. You may even be able to get creative and use email or SMS in a less salesy and more “native”-feeling way—you can find samples of texts online to help give you ideas. Exploring demand side platforms (DSP) can also bring good results.
  • Offer compelling content. Do not underestimate the quality of the content for your native ads. Besides being expertly written, it must ideally match the style and language of the chosen channel,whether you’re promoting professional headshots, pet products, or anything else. The main distinctive feature of native advertising is that it should fit naturally within the natural content.
  • Track your campaign. After the launch of native ads, it is crucial to monitor the progress, evaluating the costs spent and results. Use tools that help you gain insights beyond standard KPIs like CTR and CPC. You should get engagement metrics, customer data, campaign data, and third-party activity data for further campaign management.

Key takeaway

Summing up the above, it is time to embrace native advertising if you haven’t done it yet. Native ads seamlessly blend with organic content across various platforms, yielding superior engagement and conversion rates compared to traditional display ads. Marketers are allocating higher budgets to native ads because this format proves to be more and more effective – content that adds value can successfully deal with ad fatigue. Native advertising is experiencing a surge in popularity, and it is to reach its peak. So, do not miss a chance to grow your business with the power of native ads.or you can do digital marketing course from Digital Vidya.

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

A week or so ago, the extraordinary drama happening at OpenAI filled news feeds.

No need to get into all the saga’s details, as every publication seems to have covered it. We’re just waiting for someone to put together a video montage scored to the Game of Thrones music.

But as Sam Altman takes back the reigns of the company he helped to found, the existing board begins to disintegrate before your very eyes, and everyone agrees something spooked everybody, a question arises: Should you care?

Does OpenAI’s drama have any demonstrable implications for marketers integrating generative AI into their marketing strategies?

Watch CMI’s chief strategy advisor Robert Rose explain (and give a shoutout to Sutton’s pants rage on The Real Housewives of Beverly Hills), or keep reading his thoughts:

For those who spent last week figuring out what to put on your holiday table and missed every AI headline, here’s a brief version of what happened. OpenAI – the huge startup and creator of ChatGPT – went through dramatic events. Its board fired the mercurial CEO Sam Altman. Then, the 38-year-old entrepreneur accepted a job at Microsoft but returned to OpenAI a day later.

We won’t give a hot take on what it means for the startup world, board governance, or the tension between AI safety and Silicon Valley capitalism. Rather, we see some interesting things for marketers to put into perspective about how AI should fit into your overall content and marketing plans in the new year.

Robert highlights two takeaways from the OpenAI debacle – a drama that has yet to reach its final chapter: 1. The right structure and governance matters, and 2. Big platforms don’t become antifragile just because they’re big.

Let’s have Robert explain.

The right structure and governance matters

OpenAI’s structure may be key to the drama. OpenAI has a bizarre corporate governance framework. The board of directors controls a nonprofit called OpenAI. That nonprofit created a capped for-profit subsidiary – OpenAI GP LLC. The majority owner of that for-profit is OpenAI Global LLC, another for-profit company. The nonprofit works for the benefit of the world with a for-profit arm.

That seems like an earnest approach, given AI tech’s big and disruptive power. But it provides so many weird governance issues, including that the nonprofit board, which controls everything, has no duty to maximize profit. What could go wrong?

That’s why marketers should know more about the organizations behind the generative AI tools they use or are considering.

First, know your providers of generative AI software and services are all exploring the topics of governance and safety. Microsoft, Google, Anthropic, and others won’t have their internal debates erupt in public fireworks. Still, governance and management of safety over profits remains a big topic for them. You should be aware of how they approach those topics as you license solutions from them.

Second, recognize the productive use of generative AI is a content strategy and governance challenge, not a technology challenge. If you don’t solve the governance and cross-functional uses of the generative AI platforms you buy, you will run into big problems with its cross-functional, cross-siloed use. 

Big platforms do not become antifragile just because they’re big

Nicholas Taleb wrote a wonderful book, Antifragile: Things That Gain From Disorder. It explores how an antifragile structure doesn’t just withstand a shock; it actually improves because of a disruption or shock. It doesn’t just survive a big disruptive event; it gets stronger because of it.

It’s hard to imagine a company the size and scale of OpenAI could self-correct or even disappear tomorrow. But it can and does happen. And unfortunately, too many businesses build their strategies on that rented land.

In OpenAI’s recent case, the for-profit software won the day. But make no bones about that victory; the event wasn’t good for the company. If it bounces back, it won’t be stronger because of the debacle.

With that win on the for-profit side, hundreds, if not thousands, of generative AI startups breathed an audible sigh of relief. But a few moments later, they screamed “pivot” (in their best imitation of Ross from Friends instructing Chandler and Rachel to move a couch.)

They now realize the fragility of their software because it relies on OpenAI’s existence or willingness to provide the software. Imagine what could have happened if the OpenAI board had won their fight and, in the name of safety, simply killed any paid access to the API or the ability to build business models on top of it.

The last two weeks have done nothing to clear the already muddy waters encountered by companies and their plans to integrate generative AI solutions. Going forward, though, think about the issues when acquiring new generative AI software. Ask about how the vendor’s infrastructure is housed and identify the risks involved. And, if OpenAI expands its enterprise capabilities, consider the implications. What extra features will the off-the-shelf solutions provide? Do you need them? Will OpenAI become the Microsoft Office of your AI infrastructure?

Why you should care

With the voluminous media coverage of Open AI’s drama, you likely will see pushback on generative AI. In my social feeds, many marketers say they’re tired of the corporate soap opera that is irrelevant to their work.

They are half right. What Sam said and how Ilya responded, heart emojis, and how much the Twitch guy got for three days of work are fodder for the Netflix series sure to emerge. (Robert’s money is on Michael Cera starring.)

They’re wrong about its relevance to marketing. They must be experiencing attentional bias – paying more attention to some elements of the big event and ignoring others. OpenAI’s struggle is entertaining, no doubt. You’re glued to the drama. But understanding what happened with the events directly relates to your ability to manage similar ones successfully. That’s the part you need to get right.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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