Open Letter to Drew Brees (Lifetime Value vs ROI)




The New Orleans Saints  vs Drew Brees contract negotiation is a perfect metaphor for my frustration with marketing right now. This post is a rally call for marketers and brands to work on Lifetime Value instead of ROI.

The ROI limitation 
As Brees’ current $60M/6 yr contract ends, both sides are at an impasse because of a $6.25M overspend on the NEW contract.  Let’s look at the latest numbers reported by ESPN:
  • Brees demand:   $20.5M X 5 yrs  =  $102.5M
  • Saints offer: $19.25M X 5 yrs = $96.25M 

I’ve been here before, and I know right now that  no President, CEO, CFO, CMO would entertain a marketing plan to ‘overspend’  by 6%, (and if you were having a really bad day could trigger a request for  a 6% underspend!). So here’s an innovation for Brees....combine contracts, current ($60M)  + new ($102.5M) AND change the story:

Lifetime Value Rocks!
  1. Brees should reframe his discussion as LIFETIME VALUE, and use different language.  He MUST avoid referencing ‘current’ or ‘new’ contracts .  These contracts do not impact what he delivers to the Saints.  
  2. He needs to go in right now and TELL THE STORY that he’s only asking for $14.8M a year.  
  3. He should use these words in every statement “My lifetime playing and leadership value to the Saints is $162.5M over 11 years”. 
The lifetime value story is TRUE.  Marketers must be brave enough to tell this story about their strategies and plans. Those that do will be seen as leaders, and marketing will be rewarded as a respected growth driver for the business…..

Those that don’t, well you know who you are. Enjoy fighting with your ROI tools that still wont make the calculation work for you!



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Commercial Break. We'll be right back



Watching ESPN on my iPad has led to extreme agitation and frustration, because I can't see the commercials. Yes, you heard correctly - ads are a key role in my experience.  With my changed viewing context, broadcasters, advertisers and brands need to tackle new insights in order to meet my needs.

Self  Determination
Context:  I've chosen to watch ESPN Football via my iPad app
Insight: I'm enjoying the novelty and the complete control to watch it on my terms
Need: Acknowledge me 

Hyper-Attention
Context: The screen is c. 12 inches from my face, I'm not doing anything else
Insight:  I want to be entertained, I'm open to a message  
Need: Stimulate me, entertain me

Inertia and Anticipation
Context: Exiting the app is a hassle, and I don't know when the game will will restart
Insight: I feel a bit stuck, I don't want to miss the next play, I guess i will just wait for you
Need: Entertain me, reassure me

Okay so on ocassions  you get a ticker..........or a static graphic....




 Stop Press: Read more here where it was reported in April that ESPN would have the technology in August ready to serve ads ....on the iPad

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#YearInReview - Brand Curious: most read posts of 2010

 In case you missed some of them,  here are your favourite posts this year:

  1. a review of the must have social media marketing book Wikipedia + Mentor + Superpower = #micromktg
  2. My unshakable relationship with a coffee brand Loyalty beyond reason = Nespresso
  3. Product innovation of the year candidate ?? Free #Summermash IPhone Bumper
  4. The catwalk comes to the nappy (diaper) category the war of nappies
  5. A simple and effective brand refresh  How to refresh brand equity without alienating your audience
  6. Comeback brand of the year  How #oldspice rescued 30' ads
  7. The best Christmas ad bar none this year Hyundai vs #Pamplamoose = outlandish soundclash
  8. A must read marketing rant The trouble with swatting flies
  9. Delightful US (football) world cup coverage ESPN world cup so far so good
  10. Hmmm.... already out of date Twitter tips ! Twitter 101 smart twips and top links

Disrupting Relationships

Disrupting Relationships
I'm an ardent Man Utd Fan and was content to scour 3 channels via my provider Comcast(ESPN, Fox Soccer Channel and formerly Setanta USA) to catch their games (of football ...soccer). I have been forced out of my comfort zone this month with the demise of Setanta USA, leading to the creation of Fox Soccer Channel Plus. The downside has been that Comcast have not signed up the channel.

Building Relationships
The good news is that Foxsoccer.tv has an online service that is showing games and at $4.95 for 24 hours access is reasonably priced, and I was able to tolerate (just !) a few of the glitches during transmission of today's Man Utd vs Liverpool game.

The Dilemma
Today was the first time that I contributed to the decline of 'tv' as a broadcast medium. Comcast now have a dilemma, as a disruption to the status quo has led their consumer (me !) elsewhere and I don't see a reason to return them. The savvy content providers will serve their audience, and build relationships with them directly........Now Comcast have to make an effort to win my custom back .. eg make it easy for me to have online access to my sports channels as part of my package and perhaps I will return...