Wizard of Ads Monday Morning Memo

Auteur(s): Roy H. Williams
  • Résumé

  • Thousands of people are starting their workweeks with smiles of invigoration as they log on to their computers to find their Monday Morning Memo just waiting to be devoured. Straight from the middle-of-the-night keystrokes of Roy H. Williams, the MMMemo is an insightful and provocative series of well-crafted thoughts about the life of business and the business of life.
    ℗ & © 2006 Roy H. Williams
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  • Media Measurement Mistakes, ch. 2
    Feb 17 2025

    If you believe that people today have a short attention span, you are mistaken.

    FACT: We live in an over-communicated society.

    This is why we have learned how to quickly filter out messages that do not interest us.

    FACT: We will happily spend several hours binge-watching shows that appeal to us.

    Where’s your theory about a short attention span now?

    If you want to get people’s attention and hold that attention, talk to them about things they already care about.

    If people aren’t paying attention to your ads, it is because (A.) you chose the wrong thing to talk about, or (B.) you are talking about it in a predictable way.

    I wrote an ad this morning for a jewelry store. This is how the ad begins:

    RICK: Sicily is the island at the toe of the boot of Italy,

    SARAH: and the town of Catania is situated on the seashore, staring at the toe of that boot.

    MONICA: That’s where Jay, one of our owners, traveled to meet Italy’s most exciting new jewelry designer.

    RICK: Tell us about it, Jay.

    JAY: When I met Francesco and saw what he was working on, I almost hyperventilated.

    Those 5 lines do not sound like the typical jewelry store ad.

    But I’ll bet you’d like to hear the rest of it.

    Let’s talk for a moment about another obvious truth:

    FACT: Ads rarely work for products that people don’t want. The ad writers and the media will always get the blame, but the real mistake is made when business owners convince themselves that advertising can sell things that no one wants.

    Advertising cannot, in fact, do that.

    I recently spoke to a friend who sent out 20,000 postcards that failed to get a response. This led him to conclude that “direct mail doesn’t work.”

    When he told me what was featured on those 20,000 postcards, I told my friend the truth. “Your experiment proved only that a weak offer gets weak results. Direct mail didn’t fail. Your offer did.”

    Your objective determines the rules you must play by.

    Direct Response – immediate result advertising – can be measured with ROAS (Return On Ad Spend.) Pay-per-click is perhaps the most common type of direct response advertising, but direct response offers are routinely made using every type of media. If you plan to introduce, explain, and sell a product or service to a customer with whom you have no previous relationship, you are rolling the dice of direct response. You can always measure the effectiveness of direct response ads with ROAS.

    Direct Response is a sport for surfers who like to ride the wave of a trend. It is a wild and crazy rollercoaster ride of feast-and-famine. If you like excitement, you should definitely do it. But be aware that the most successful direct response marketers are spending 25% to 35% percent of top line revenues on advertising. You need at least a 20x markup to play that game.

    I prefer sowing and reaping. Seedtime and harvest.

    Brand Building creates a long-term bond with the customer. The goal of brand building is to make your name the one that customers think of immediately – and feel the best about – when they finally need what you sell. Your Return on Ad Spend –ROAS – will look terrible when you first begin, but it will get better and better as you build a relationship with the public. In the long run, nothing can touch brand building. It is always the most cost-effective way to invest your ad budget if you have patience, confidence, and a good ad writer.

    Roy H. Williams

    Twenty-eight million viewers tuned...

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    6 min
  • Media Measurement Mistakes: Chapter 1
    Feb 10 2025

    Buying advertising is a lot like buying diamonds.

    Allow me to explain.

    Anyone who talks to a jeweler will be told that diamonds are graded according to the 4 C’s: Color, Clarity, Carat weight, and Cut.

    Customers ask the jeweler, “Which of the 4 Cs is most important?”

    This seems like a perfectly reasonable question, but the truth is that the 4 C’s cannot be compared to one another. There is no rubric, no metric, no algorithm that can equate them. The 4 C’s are distinctly separate from one another. They are not interchangeable.

    Advertising is like that. Each of the characteristics of highly effective advertising are distinctly separate from one another. They are not interchangeable.

    Natural diamonds can be an infinite number of shades of yellow, grey, brown, green, blue, red, or a mixture thereof. Diamonds can also be colorless.

    The only thing more valuable than a colorless diamond is an extremely colorful one.

    Color is a measurement of rarity, not beauty.

    Clarity is another measurement of rarity, not beauty.

    “Flawless” clarity refers to a diamond which is free of inclusions under 10x magnification. But under 40x magnification every flawless diamond is swimming with inclusions that cannot be seen under 10x. So get this idea of “flawless” out of your head, okay? It is a myth.

    Seven clarity grades below flawless is another clarity known as SI2, which looks flawless to the naked eye. Not even a jeweler can tell the difference without 10x magnification. But there is a huge difference in price between flawless and SI2 because Clarity is a measurement of rarity, not beauty, remember?

    Carat weight is how the size of a diamond is measured. We’ll come back to this in a minute.

    Cut does not refer to the shape of the diamond, but to the ability of the diamond to gather light, bounce it between the facets, and then shine it upward toward the eyes. When diamonds are cut perfectly, they do not leak light out of the bottom of the diamond. A perfectly cut diamond returns 100% of internalized light upward and outward in a wild spectacle of sparkles.

    You want sparkles, but you also want carat weight.

    When you cut a diamond crystal perfectly, you lose more than half of that diamond’s Carat weight. But if you cheat the cut a little, the diamond won’t sparkle as much but it will weigh more and sell for more money.

    If you cut the diamond with a thick girdle and a deep pavilion, the diamond will be dull because its internal mirrors will be misaligned, but it will be much heavier than if it were cut properly.

    A Carat is a unit of weight. There are 141.748 Carats in an ounce. This means that a small pouch of 1-Carat diamonds worth just $4,000 each will cost you $567,000 an ounce.

    Pure gold is less than $3,000 an ounce.

    Are you beginning to understand why diamond cutters are loath to grind away precious carat weight in the quest for maximum sparkle?

    Your logical mind tells you that it should be possible to create a diamond algorithm that says, “one colorgrade = 0.05 carats = 0.78 of a clarity grade = 2.13% excess weight above the projected carat weight for a perfectly cut diamond of this diameter.”

    Your logical mind tells you this because you continue to believe that dissimilar properties such as color, clarity, carat weight, and cut can be quantified, codified, and reconciled.

    In truth, they cannot.

    Buying advertising is even more complicated than buying diamonds.

    The rubric used to calculate the Gross Rating Points achieved in media schedules makes perfect sense until you realize it equates dissimilar properties and treats them as though they are...

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    12 min
  • The Cruelty of Hope
    Feb 3 2025

    I recently sent you two memos about our need for positive hope.

    “Hollywood’s Broken Angel” was the true story of a woman who desperately needed a friend to encourage her.

    “Hope and a Future” explained how easy it is to recharge the emotional batteries of a friend whose light has dimmed.

    Positive hope crackles with the vibrant energy of life itself. It radiates honesty, openness, forgiveness, acceptance, optimism, loyalty and love.

    Positive hope illuminates the heart and drives away the darkness.

    But there is also such a thing as negative hope. It promises salvation but delivers only hubris, which is desperation disguised as confidence.

    Negative hope is attractive, addictive, and cruel.

    Gamblers sitting around a poker table are the perfect portrait of negative hope. They ride a rollercoaster of elation and despair but tell themselves they have a system.

    A second portrait of negative hope is a lottery ticket, a receipt issued by the government to citizens who pay a voluntary tax because they believe in lucky numbers and are extremely bad at math.

    Bernie Madoff was a salesman of negative hope. He wore the mask of a self-made billionaire, but behind that mask was a desperate little con man who stole money from innocent people who believed they had been admitted into the inner circle of a genius who had a secret system.

    The world is full of elegant and attractive people who sell negative hope. One of them will sell you a worthless education by promising you a better-paying job. Another will sell you a garage full of crap by convincing you of the miracle of multilevel marketing. A third will sell you the promise of inner peace by convincing you they have it, and that it can be transferred to you for money.

    Negative hope is attractive, but you can easily recognize it now that you know what to look for.

    I’m really glad we got that out of the way because now I’ve got some great news for you: inner peace is real.

    And here’s some even better news: you can have it for free, no strings attached.

    Inner peace is honesty, openness, forgiveness, acceptance, optimism, loyalty and love. All of these can be yours for free. But first you have to give them away.

    It is a simple but fascinating system. The more you give these 7 things to others, the more richly they accumulate in you.

    Five hundred and eleven Christmases have come and gone since Giovanni Giocondo sent his Christmas letter to a friend in 1513. It said, “No peace lies in the future that is not hidden in this present little instant. Take peace!”

    Likewise, I say to you, inner peace is hidden in this present little instant.

    Reach out and take it. It’s yours.

    Roy H. Williams

    When roving reporter Rotbart was a financial columnist with The Wall Street Journal, he met a young man named Steve Jobs who left a lasting impression on him. “When I spoke with Jason Schappert,” Rotbart says, “it felt like I was talking with Steve Jobs again.” Jason Schappert recently launched an AI-powered investment platform for middle-class consumers, providing the same insights and tools typically reserved for the ultra-rich. Today you have an opportunity to learn from Jason Schappert about how to identify opportunities, make bold decisions, and leverage your passion as roving reporter Rotbart meets with him at MondayMorningRadio.com

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    5 min

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