redefining business models in a post-penguin world

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Redefining Business Models in a Post-Penguin World Greg Boser President BlueGlass Interactive http://www.blueglass.com @GregBoser

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Following the Penguin update, there has been a real shift in the digital marketing industry towards strategies and tactics that are more defensible in the long-term. This presentation uncovers the ways that BlueGlass has responded to this changing market and how we've developed a business model that will help our clients not only to drive results in the short term, but to build an online foundation that can weather algorithmic changes into the future. We discuss the challenges we've faced in making a transition towards this much more powerful model, and give tips for agencies looking to make a similar change.

TRANSCRIPT

Page 1: Redefining Business Models in a Post-Penguin World

Redefining Business Models in a Post-Penguin World

Greg BoserPresident

BlueGlass Interactive

http://www.blueglass.com

@GregBoser

Page 2: Redefining Business Models in a Post-Penguin World

About BlueGlass

BlueGlass is a full service digital marketing agency. BlueGlass was formed with the goal of providing high quality services that deliver real, clear, results.

Page 3: Redefining Business Models in a Post-Penguin World

About Me

Spent 14 years in a consultant/small boutique agency environment primarily focused on organic SEO

Page 4: Redefining Business Models in a Post-Penguin World

About Me

Joined BlueGlass as SVP of Search Services by way of an acquisition in October of 2010.

Page 5: Redefining Business Models in a Post-Penguin World

About Me

March of 2011 took on the role of President of Products & Services, and focused on the task of integrating the Mash up.

Page 6: Redefining Business Models in a Post-Penguin World

About Me

Dropped the “Products & Services” part in January 2012 so I could: A) Fit my title in the PubCon speaker registration

form. (Brett still believes in character limits)

B) Spend more time working on the Biz Dev side of things with our VP of Excitement, Loren Baker.

Page 7: Redefining Business Models in a Post-Penguin World
Page 8: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

Google Launches Caffeine in June of 2010

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Google Goes Completely Insane

Size of index explodes

Page 10: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

New automated filtering can’t keep up

Page 11: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

Onslaught of “poor quality” articles floods the web

Page 12: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

October of 2010 Google rolls out an excessive localization tweak

Page 13: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

February 2011 Google retreats to “iterative filtering” to control all of the spam getting through (Panda)

Page 14: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

Follows up a year later with a little “Behavioral Correction” filtering. (Penguin)

Page 15: Redefining Business Models in a Post-Penguin World

Google Goes Completely Insane

Everyone’s skeleton's are exposed.

Page 16: Redefining Business Models in a Post-Penguin World

Our Goal

Build a fully integrated and scalable data-driven, digital marketing agency that focuses on developing and executing content-based marketing strategies.

Page 17: Redefining Business Models in a Post-Penguin World
Page 18: Redefining Business Models in a Post-Penguin World

Issue #1

Siloed Internal Structure

Trying to build integrated marketing strategies from a vertical silo structure doesn't work.

Page 19: Redefining Business Models in a Post-Penguin World

Siloed Internal Structure

Trying to build integrated marketing strategies from a vertical silo structure doesn't work.

Page 20: Redefining Business Models in a Post-Penguin World
Page 21: Redefining Business Models in a Post-Penguin World
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Ditched channel-specific silos in favor of a structure based client lifecycle workflow. (one team works on all components)

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Ditched channel-specific budgeting (no internal fighting over budgets).

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Implemented a greater level of top-down transparency (entire team knows more about the engagement much earlier in the process)

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Implemented open ideation (If the janitor has a good idea, I want to hear it)

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Better ability to address all marketing goals

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Higher level of agility

Page 29: Redefining Business Models in a Post-Penguin World

Better ideas

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Happier employees

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Page 32: Redefining Business Models in a Post-Penguin World

Product Ambiguity(Consultancy Vs. Vendor Services)

Pick one or the other. Trying to offer both really doesn’t work.

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Killed One-off Production-only and 3rd Party Vendor Services

We don’t sell articles and infographics; we sell content marketing strategy

Page 35: Redefining Business Models in a Post-Penguin World

Killed One-off Production-only and 3rd Party Vendor Services

We’re not a vendor; we’re a strategic transparent partner

Page 36: Redefining Business Models in a Post-Penguin World

Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Relieved overloaded production department

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Made content production profitable!

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Antiquated Pricing Models

Content-driven strategies are more complex, and the margins associated with the various pieces involved can be quite different.

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Page 42: Redefining Business Models in a Post-Penguin World

Antiquated Pricing Models

Grouped all services based on the project lifecycle model

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Antiquated Pricing Models

Tracked the true costs of each group

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Antiquated Pricing Models

Made value-based adjustments to bundled pricing distribution

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Antiquated Pricing Models

Introduced performance-based pricing and guarantees for promotion services

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Antiquated Pricing Models

Reduced redundancy

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Antiquated Pricing Models

Identified unprofitable services

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Antiquated Pricing Models

Improved client perception

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Antiquated Pricing Models

Increased margins

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Antiquated Pricing Models

Increased client adoption

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Antiquated Pricing Models

Created a pro-experiment/failure-is-ok environment

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Poor Client Selection

Content-driven strategies are a lot more work. Not every company that wants to hire you is a good fit.

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Poor Client Selection

At the end of the day, you need wins!

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Poor Client Selection

Implemented a “High Probability Selling” sales model

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Poor Client Selection

Rejected the traditional RFP model

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Poor Client Selection

Focused on “changing the conversation”

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Poor Client Selection

Learned to say no to abusive “dangling carrot” clients

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Poor Client Selection

Dramatic improvements in:

Landing “great fit” clients

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Poor Client Selection

Dramatic improvements in:

“Time to Trust”

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Poor Client Selection

Dramatic improvements in:

Average engagement length

Page 65: Redefining Business Models in a Post-Penguin World

Poor Client Selection

Dramatic improvements in:

Overall profitability

Page 66: Redefining Business Models in a Post-Penguin World

Issue #5

Outdated Contract Structures

Legacy contracts completely lacked the type of language necessary to deal with the unique issues related to content marketing.

Page 67: Redefining Business Models in a Post-Penguin World

Outdated Contract Structures

Legacy contracts completely lacked the type of language necessary to deal with the unique issues related to content marketing.

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Changes We Made

Outdated Contract Structures

• Implemented SLA’s with guarantees• Added client obligations/responsibilities• Implemented subscription model pricing for

production services• Added simple budget reallocation tools

Page 69: Redefining Business Models in a Post-Penguin World

Outdated Contract Structures

Implemented SLA’s with guarantees

Page 70: Redefining Business Models in a Post-Penguin World

Outdated Contract Structures

Added client obligations/responsibilities

Page 71: Redefining Business Models in a Post-Penguin World

Outdated Contract Structures

Implemented subscription model pricing for production services

Page 72: Redefining Business Models in a Post-Penguin World

Outdated Contract Structures

Added simple budget reallocation tools

Page 73: Redefining Business Models in a Post-Penguin World

Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Outdated Contract Structures

Dramatically improved client response time

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Outdated Contract Structures

Greater ability to forecast and budget for labor

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Outdated Contract Structures

Much happier clients through the production phase

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Outdated Contract Structures

Overall reduction in overrun engagements

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Outdated Contract Structures

Much better ability to pivot

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Issue #6

Content Quality Consistency

Relying solely on outside vendors for content production can work really well at the boutique level. But it doesn’t always scale well.

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Content Quality Consistency

Relying solely on outside vendors for content production can work really well at the boutique level. But it doesn’t always scale well.

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Page 82: Redefining Business Models in a Post-Penguin World

Content Quality Consistency

Acquired Voltier Digital

Page 83: Redefining Business Models in a Post-Penguin World

Content Quality Consistency

Brought writers in-house

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Content Quality Consistency

Aggressively hired new writers

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Content Quality Consistency

Applied subscription model to vendors

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Content Quality Consistency

• Dramatic improvement in consistency• Huge reduction in revision work• Greater ability to scale

Page 88: Redefining Business Models in a Post-Penguin World

Issue #7

Lack of Process Documentation

Being really good at what you do doesn’t mean you are prepared to teach others to be good too.

If you plan on growing in the future, take the time to analyze and document what you do and how you do it!

Page 89: Redefining Business Models in a Post-Penguin World

Lack of Process Documentation

Being really good at what you do doesn’t mean you are prepared to teach others to be good too.

Page 90: Redefining Business Models in a Post-Penguin World

Lack of Process Documentation

If you plan on growing in the future, take the time to analyze and document what you do and how you do it!

Page 91: Redefining Business Models in a Post-Penguin World
Page 92: Redefining Business Models in a Post-Penguin World

Lack of Process Documentation

Added a dedicated person to oversee the process development and documentation process.

Page 93: Redefining Business Models in a Post-Penguin World

Issue

Lack of HR Identity

The day-to-day environment of a larger organization is quite a bit different than that of a boutique consultancy.

Being great at what you do doesn’t necessarily translate into a situation that’s a fit.

Page 94: Redefining Business Models in a Post-Penguin World

Lack of HR Identity

The day-to-day environment of a larger organization is quite a bit different than that of a boutique consultancy.

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Lack of HR Identity

Being great at what you do doesn’t necessarily translate into a situation that’s a fit.

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Page 97: Redefining Business Models in a Post-Penguin World

Lack of HR Identity

Took the time to identify those in the organization who had the right personality traits

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Lack of HR Identity

Found them positions that best matched their skill sets

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Lack of HR Identity

Empowered them to go find and hire themselves

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Lack of HR Identity

A super awesome, dedicated staff that kicks ass!

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Issue

Practicing What We Preach

The cobbler’s children often have no shoes.

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Practicing What We Preach

The cobbler’s children often have no shoes.

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Practicing What We Preach

Built a dedicated internal marketing team

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Practicing What We Preach

Made the commitment to grow our company only using the methodologies we preach

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Practicing What We Preach

Use ourselves to R&D new products and workflows

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Benefits

• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees

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Practicing What We Preach

We’ve seen massive increases in:

Overall brand awareness

Page 110: Redefining Business Models in a Post-Penguin World

Practicing What We Preach

We’ve seen massive increases in:

Size of our own audience

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Practicing What We Preach

We’ve seen massive increases in:

Flow of quality leads

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Practicing What We Preach

We’ve seen massive increases in:

Actual new business

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Change and Chaos is Good

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Complacency is the kiss of death

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Never stop innovating and iterating

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Greg Boser

President

BlueGlass Interactive

http://www.blueglass.com

@GregBoser