I'm a web strategist and aspiring know-it-all with a passion for all things digital. I've worked in PR, advertising and not-for profit industries, and now I run a creative agency. These are the things I think about, and am sometimes compelled to write. More...

Category Archives: Word of Mouth Marketing

The Long Tail of Theatre

I’ve been working with the guys at 76Design for the past few months to help get a site up for the Ottawa Fringe Festival – a not-for-profit festival of which I am a board member.  The festival is 11 years old this year, and this is the first time it’s ever had a solid website.  I’m blown away with what the guys at 76 were able to do, and I suggest you check out the site.  Go ahead.  I’ll wait.

As I’ve mentioned several times on this blog, I’ve been involved in theatre at various levels and in various capacities since I was in high school.  It’s an odd business, and this is something that becomes painfully clear the second you try to understand it.  There are no economies of scale, no syndication, and in most cases, not even a delusion that a play will make money, unless it happens to be a huge blockbuster – and these probably account for about one-tenth of one percent of all of the productions out there. 

From an economic perspective, there is a hard cap on how much money an audience member is willing to pay, and how much time they are willing to invest.  Given the cost of actors, directors, costumes, set, theatre time, techs, lighting, designers, publicity, advertising and so on, the cost to produce a show that’s not a Broadway smash hit is exorbitant.  I’ve been in operas with budgets over $800,000 for a four-day run. If theatre companies were to charge a rate that aimed at profit, they would in most cases need to charge hundreds of dollars per ticket – a price that the market certainly would not bear.

So, how do theatre companies make money?  Well, the short answer is – they don’t.  Most operate as charities, and most are run by passionate people taking a fairly severe pay cut.  The most telling statistic in the industry I’ve ever read came from a Canada-wide government survey of the performing arts that found that the largest financial supporters of the arts were artists themselves – skilled and educated people working for low wages out of sheer passion.

Because of these economics, practically every government in the world subsidizes these costs through grants (Canada is one of the worst at this, but that’s another story).  As a result, professional artists are able to work and produce quality theatre within the economic boundaries that is dealt.

This is fine for established artists, but how does new and cutting edge work get created if the cost is so high?  Even if they are working for free, an unproven artist putting on a new work must pay for sets and lighting and publicity and theatre time and so on.  Not quite six figures, but still a substantial cost for someone self financing.

Fringe Festivals, in many way, represent the long tail of theatre.  The Fringe started in Edinburgh in 1947 as a way for artists who weren’t able to get into the much larger Edinburgh Festival to self-organize another festival “on the fringe” and debut new and innovative works that didn’t fit the larger festival’s mandate.

The Fringe came to Canada in 1982 when the Edmonton Fringe Festival started.  Since then, the Canadian Association of Fringe Festivals has expanded to 25 festivals (some in the U.S.), all based on the idea of encouraging new works and new artists. 

To get in, a group pays a nominal fee (usually between $500 – $800) and in return is provided with publicity within the festival, a box office, ticket sales, a theatre tech, lighting, sound and a stage to act on, and then receives 100% of their box office.  In addition to that, performances are unjuried, so artists do not need to adapt their performances to the tastes of a festival and new works can grow.

In this way, the festivals act as aggregators of theatre – most with shows under 60 minutes – allowing audiences to find new works, new artists and new tastes without having to gamble on a high ticket price and a long show. 

The interesting thing about these festivals – and I’ve been to many – is the natural social network that evolves.  It’s not hard to find out what’s good and what’s not from anyone at the festival who’s hanging out at the beer tent.  Shows succeed and fail by their own talent.  It’s not about who has the most advertising – it’s about who has the best product and the most evangelists.

Of course, the nature of theatre still doesn’t allow these artists to reach the whole world, but it does allow them to tour the network of Fringes fairly inexpensively, billeting along the way, and exposing their art to thousands of people across the continent instead of a few hundred in one small market.  Like an indie band on iTunes, the Fringe allows artists to make a name where they couldn’t have before, and audiences to discover new kinds of art that they might never have taken the chance on before.

This is the reason that I’ve been involved in the Festival as long as I have, and the reason I encourage anyone who has a Fringe in their town to see what the festival has to offer.  For $10 and an hour of your time, you can’t go too far wrong.

Giving back

We’ve all got our causes – the really meaningful bits that we really sink our efforts into because we believe… not just because we’re paid to.  For me, it’s the arts.  It’s a hard sell, admittedly… as the saying goes, it’s easier to sell soap flakes than brotherhood, but to me, it’s a very important one. 

If you’ve read my blog for any length of time, you’ll know that my involvement in theatre has had a major influence on my career, and I think it’s still something that can influence the world for the better.  Children involved in the arts learn more easily, are more confident, and are less afraid to try new things.  Fostering a strong arts community is imperative to a strong community overall.

This is why I sit on the board of the Ottawa Fringe Festival.  For those of you who don’t know, the Fringe Festivals are a North American association of theatre festivals which range across Canada and the United States, and operate on the principle that performers have 100% control over their product and take 100% of the box office proceeds.  They just pay a small fee to pay for space, tech and admin, and they promote their show within the scope of the festival.  This allows artists a way to showcase new works, to gain country-wide exposure and interaction with other artists, and allows the festivals to expose their local audiences to the kinds of works that they would not necessarily see in a traditional theatre company.  Think of it as the Long Tail of theatre.

Given their “all the money goes to the performers” business model, these festivals rely heavily on corporate sponsorship and advertising revenue.  They produce a 40-page colour program of all the plays that will be showcased in the festival, and right now, the Ottawa Fringe is putting together their advertising for that program, and I’m hoping that some of my local – or even national readers who want to help support a cause like this can help out – either by buying an ad yourself, or passing this on to someone who would benefit from it.

A full page ranges from $800 – $1400 depending on placement, but you can buy a smaller ad for as little as $275.  If you’re intrested, the contact information is on the rate card above, or just ask me.

Hugh on cool brands

From Gapingvoid:

If you want to have a cool brand, you have to do cool shit.I don’t think I can put it any simpler than that.

100% true. I’m happy to work with people who aren’t afraid to do cool shit.

(Via gapingvoid: “cartoons drawn on the back of business cards”.)

Corporations Bearing Gifts

After posing the question of credibility and gifts yesterday, it seemed like the thing to do would be to actually talk to one of the bloggers who were flown to Seattle for the big product announcement of the Zune. I talked to Glenn Peoples from Coolfer, who was more than willing to talk about his experience and his thoughts on the subject of bloggers accepting gifts.

Should bloggers be accepting junkets? According to Peoples, it depends on a number of factors. “First and foremost,” he says, “the blogger should disclose the junket,” something which he suggests does not happen as often as it should.

Readers don’t want to get the company line. They want honesty. Lately a lot of people don’t think they can get that honesty in the mainstream media. Blogs are expected to be untainted. That’s a reasonable expectation. The less outside influence in blogs, the better.

While most reputable news organizations have strict rules about what gifts they can accept, bloggers have no such code of ethics. However, asking a blogger who is making little to no money from their site to self-finance such a trip would be impossible. Glenn insists that the trip had no effect of his objectivity, but that without his expenses paid, travelling to Redmond would not be an option.

“To be honest,” he says, “I would have preferred that they all came to my living room and we all did the interviews and presetation right there. I’m in business school and don’t have a lot of free time, nor do I love 7am flights, but I was presented a wonderful opportunity to see an important new product.”

But what about pressure for positive reviews from the company? Peoples says that there was no pressure to be anything but honest with his readers, and that he would not have accepted the junket had the case been anything but this.

“My name is on my blog. My reputation is on it. That’s very important to me. I’m not trying to win favor with anybody in Redmond. My readers should know that. I strive to present a thoughtful, fair and open-minded blog. My posts on the Zune have been and will be fair and objective.”

Because Microsoft was clear that such favouritism was not necessary, he says that he thought the coverage of Zune by and large was fair an unbiased.

“Positives and negatives were brought out into the open. Personally I don’t think Microsoft cares what is said about the Zune. They want people talking about it, and they want feedback. They want discourse,” he says.

He also adds that while some restrictions were placed on the bloggers who visited, (for example, no photography was permitted), he understands why some limitations had to be put in place when dealling with a prototype product.

“I would have preferred to take photos, but the devices I saw were not final and I understand why Microsoft does not want them photographed,” says Peoples. “Had I taken photos, my readers would have seen demos, not the final product.”

As for the commenters who accused him and others who covered the launch of shilling for Microsoft he said that he respects opposing opinions, but hopes that such characterizations would be based on “substantial concerns and objective reasoning.” He also adds that the negative comments did not surprise him.

“I’m never surprised by negative comments in blog posts. People say all sorts of things in comments sections. I would be surprised if a critic took the time to email me and voice his or her displeasure, or said it to me personally. In fact, I would prefer negative emails. That would show me somebody is being more than a troll.”

As for whether these sorts of junkets and gifts to bloggers will pollute the credibility of bloggers in the future, his answer shows a journalistic dedication to his readers.

“If it turns out that readers don’t want bloggers to accept such trips, I think we shouldn’t accept them,” he says. “Until that happens, we’ll have to see which direction opinion goes and what events influence readers’ opinions.”

Top 20 Canadian WOM Bloggers

Sean from BuzzCanuck posted his top 20 Canadian social media, word-of-mouth and PR bloggers. I’m not on it, but I’m sure that’s merely an oversight (at least that’s what I’m telling myself to avoid crying myself to sleep tonight).

This is a great list – I’ve added a few sites to my RSS reader as a result of it. We Canucks have to stick together!

How to generate word of mouth

Olivier Blanchard at the Brand Builder Blog posts what is possibly the truest thing I’ve heard all week.  To paraphrase his post, the steps to creating great word of mouth are as follows:

  1. Create something that amazes, delights and excites your customers.
  2. There is no step 2.

Check out the original post, bookmark it, and send it to every potential client who wants you to generate word-of-mouth for something completely mundane.

Joining the conversation

“Joining the conversation” is a phrase that is often echoed in Web 2.0 and social media circles. Even now, a lot of PR professionals and clients are unsure of the benefit of entering this mysterious conversation, and don’t see the necessity.

The reality is that if your product is worth talking about, good or bad, it will be talked about. This is nothing new – word of mouth has destroyed a lot of products in its day. The Ford Pinto, despite their attempts to cover up the fact that they would explode in rear-impact collisions, was forced out of the market by people talking about it. This took almost two years – in the new information economy, a story like this would make it around the world a dozen times in less than a week.

In general, there are two kinds of things being said about your products or your company on the Web. In most cases, the buzz is either negative or glowing. It’s rare that a blogger would go to the trouble to say “I bought X today, and it was not bad.”

So how do you respond when the buzz turns against you? Join the conversation. Negative buzz is one of two things – accurate or flawed. It’s important that both of these things are addressed quickly before that buzz gets out of control.

If the negative comments are factual, in the case that a product is flawed, a policy is unjust, or a mistake has been made on the part of your company, the best way to address it is to acknowledge that fact, and explain what steps are being made to correct it. This is very similar to a crisis PR approach, though the goal of this exercise is to fix the problem before crisis arises.

Kryptonite Locks are a perfect example of blog buzz destroying a product. When it came to light that these top-of-the-line locks could be picked with a bic pen, it was all over the Web, yet Kryptonite never responded with anything other than the same old line that “Kryptonite locks are the best.” Had they become a part of that conversation and explained what they were doing to fix this problem, and how they would compensate customers who had a flawed lock, they could have looked great. Instead, their stock plummeted, along with their reputation.

The main difference between blogs and the media is a lack of accountability on the part of blogs. Opinions are fair game in a way that newspaper columnists could only dream of. As a result, there are many unique opinions, and many, many flawed opinions.

When you’re hit with a negative and factually inaccurate buzz, it’s especially important to act quickly before another blogger sees it and reprints it as gospel. Simply by commenting on a blogger’s post or contacting them directly, you show not only that you care about what your customers are saying and how they are experiencing the product, but you’re also helping other bloggers who might be having the same problem, and preventing a mass negative buzz in the process.