Grow Smart Blog

This month, journalist Michael Hingston publishes an article about Smibs in the Alberta Venture magazine. We are honoured to be a part of this very popular magazine, particularly with such a nice article written. The interview, which is the basis of the article, is with Peter Urban, the founder of Smibs. It takes you back to Peter’s days as a race car driver in Germany, through his entrepreneurial endeavors to present day as owner and operator of Smibs.

READ FULL ARTICLE HERE

Finally…

Finally after weeks, perhaps even months, I can eat and sleep comfortably once more. Finally I can go throughout my day and not break down into a blubbering mess due to critical levels of mental anguish. Finally I can drive from point A to B without having to pull over on the side of the road and contemplate the meaning of my life. Finally… I know what the “August 5″ campaign in Edmonton signifies.

Metaphysical life-altering experiences aside, Edmonton’s Southgate mall recently finished an interesting marketing campaign to generate some buzz about their grand re-opening after substantial renovations. Featuring new stores, new physical outlay and a “new feel,” Southgate created a marketing plan to gain new shoppers and align itself as a legitimate competitor to the monolith that is West Edmonton Mall. How you ask? By simply posting signs around the city that said no more then “August 5″.

Southgate's re-opening campaign had Edmontonian's wondering: "What the heck is happening on August 5th?"

Teaser marketing campaigns (definitely not something new or indigenous to Edmontonians) play off of and manipulate the innate human characteristic of needing to understand what is going on. By strategically providing only small pieces of information regarding the actual event/product, advertisers hope to stir up the most powerful marketing tool: word of mouth. In this case, mission accomplished. After only weeks of seeing the signs around the city, I heard numerous mentions of the campaign from all kinds of sources, ranging from newspaper and radio to simple banter between friends. People were agitated by knowing absolutely nothing about something they drove past every day and as a result they spread the campaign around the city for Southgate (at no extra cost).

Probably the most documented case of teaser marketing in recent memory was the 2007-2008 campaign for the movie Cloverfield. Movie advertisements featuring only a shaky camera and a single passing glance of a gigantic monster attacking a city caught people’s attention, but by not mentioning a movie title, release date, or any sort of information that would help the viewers figure out what they just saw, the advertisements caused everyone in the theatre look at each other and wonder out loud “what was that?” They added to this fantastic viral campaign with a website that gave out almost less information then the movie previews but featured videos and puzzles alluding to a post-apocalyptic world, creating more hype towards whatever the hell it was that advertisers were planning on releasing.

The catch to teaser marketing is that with added hype comes higher expectations. After toying with their emotions (as my fragile psyche would suggest) the consumer expects to find a light at the end of the tunnel that really blows them away. Anything less than that and the promoter can face anything ranging from apathy to resentment, severely damaging any hype they had created. Cloverfield did amazing out of the gates, but kind of tapered off by leaving some people expecting more explanation from the promoters as the storyline didn’t finish on a solid note. Southgate attempted to add to their re-opening by hiring performers but, from what I’ve gathered, the event left a few people saying “that’s it?” The teaser campaign can be an incredibly effective tool at drumming up publicity, but due to the hightened expecations a promoter needs to sit down and determine if their product is worthy of the hype.

Tease me all you want, but you’d better have something that’s worth my sanity.

Sponsorship strategy? Check.
Customer relationship management? Check.
Social networking initiative? Check.
Fireproof racing suit? Check.

As the dust settles on another “successful” Rexall Edmonton Indy, its attendees are left to nurse hangovers and sunburns while its promoters are left to reflect on the successes and fallbacks of the event. While the race draws annual crowds of well over 150,000 people, the Edmonton portion of the Indy circuit continually reports losses. Why is this? The event is nearly sold out every year, corporate support is strong, thousands flock to the city to attend, yet the race is predicted to lose anywhere between 1-3 million dollars. With low sponsorship numbers and even lower television ratings, what can promoters do to ensure the race continues in Alberta’s capital city? I don’t know the answer (if I did I would have a drastically different job title) but I think a place they could start is by learning from their drivers.

Over the Indy weekend I had the pleasure to spend some time with Canadian driver Alex Tagliani behind the scenes while he prepared for the race and I was absolutely blown away by how hard these athletes work off the track to make sure they still have a ride on it. The economic downturn has hit auto racing, a sponsorship dependent activity, perhaps the hardest of any North American sport and with less money to go around, drivers that become complacent have found themselves without a team to race for. Tagliani, who drives for a small race team, has had to rethink the way he goes about securing sponsorship and think of new, more cost effective ways of drumming up publicity and funding. So much so, that in a July 20 Edmonton Journal article Tagliani “estimates he’s spending about 90 per cent of his time raising money, and just 10 per cent driving.” Be it utilizing social media to boost attention, tireless work with clients and sponsors, or spending weeks ahead attending local festivals and contests, Tagliani not only increased his chances of finding a full time racing team next season but also created new racing fans, which benefits the entire sport.

Like any business, the Indy’s success depends on the performance of the entire crew. With shrinking sponsorship streams the entire industry must enter the pits, get retuned, and strategize for the laps ahead. On that note, I’ll wave the checkered flag on this string of puns and leave the forum open for discussion. What else can the Indy, or any business for that matter, learn from the way drivers secure their own sponsorship and deal with partners, clients, and supporters?