Transparency Rollercoaster

Yesterday I had a fascinating meeting with execs from one of the larger digital media agencies.  As I have more of these discussions, I’m seeing a pretty interesting pattern developing around the concept of “transparency.”  There are generally a variety of predictable twists / turns - we start with skepticism, head towards intrigue, reach a level of excitement, make another stop by doubt, and then end up at “Yeah, I’ll try that.”  

Skepticism: "You want me to be MORE transparent with sellers?? I can’t handle the current volume of sales calls – how do you expect me to handle more???"
Intrigue: “Oh, so I have a place to refer and filter incoming sales calls?”
Excitement: “Better ideas, less time commitment – and it’s free?”
Doubt: “Wait, but aren’t sellers going to hate this?”
Decision: “OK - makes sense.  Yeah, I’ll try that” 

The fascinating part of the discussion is that moment of Doubt before Decision.  Suddenly, transparency has become a friend rather than an enemy. Send sellers to a website where they can get informed and make a pitch – only spend time with people who impress you with good ideas.  Buyers see such a strong value proposition, they worry the other “side” is getting the short end of the stick.  “This is great for us, but sellers are going to hate this!”  Not true.

Sellers crave transparency.  No seller wants to spend 3 months trying to get a meeting with a buyer only to find they have no chance.  Sure, most sellers believe they could sell ice to eskimos, but they’re also practical.  Given the right information, they’ll focus all their energy / charisma on accounts they know are looking for their product. It turns out transparency is a friend to both sides. 

Idea Goldmine

The State of California is getting a lot of attention this week for its challenge to constituents to help the state increase IT efficiency by 10x while spending 1/10 the budget.  They've set up a website to collect and filter ideas from regular people, and it’s powered by a startup called IdeaScale that bills itself as an “Idea Management” company. 

There are a couple of high-profile startups in this "Idea" space (see Spigit) that are showing great traction with the Fortune 500 and government clients.  The general idea behind these apps is that any large organization’s employees and customers represent an untapped gold mine of ideas.  Until now, extracting and filtering those ideas has been a mess.  The old “suggestion box” just doesn’t cut it, so technology companies are rushing in to help - providing a simple way for people to submit ideas, vote on ideas, and bubble the best to the top.

At its core, AdHatchery is also an Idea Management company.  We’re helping media agencies to extract and manage valuable ideas from a largely untapped gold mine of ideas – sellers.  It turns out there are thousands of sellers just chomping at the bit to give advertisers their best ideas. As an industry though, we're still caught in a "suggestion box" paradigm.  Information moves between buyers and sellers at a snails pace.  Information sharing between accounts at agencies is almost non-existent.  Buyers routinely move in and out of accounts, and their information resources move with them.  The people at agencies on the front lines of ideas simply don’t have tools to help them gather / filter information efficiently, while the amount of information available to them is growing exponentially. In the end, clients suffer.

AdHatchery is here to help.  Let me highlight a couple of features built for media buyers to manage ideas.  First, the “Star.”  When ideas are submitted through AdHatchery, buyers can choose to give it a Star and this becomes a primary sorting mechanism. 

Below, you see the basic header of a buyer’s Idea Dashboard on AdHatchery. All ideas that are ever submitted to an account through AdHatchery live in perpetuity on the dashboard.  Buyers can filter the dashboard by 1) ideas they’ve starred or 2) ideas their colleagues have starred.  They can also sort by account, seller company, seller rep or the date it was submitted. In the near future, we’ll allow them to sort / filter by publisher type, content type, ROI metric, etc.  If you’ve ever used Kayak’s search function, then you can imagine what we have in mind. 

Picture_8

The Beta

For the past several months, the AdHatchery team has been working furiously to build our product.  Judging success and progress in the product development cycle is fairly binary.  The features you build either work or they don’t.  Simple as that.  As we move out of this initial development phase and into beta testing however, life gets a little more complicated.  The question is no longer so much whether features technically work (although that still keeps me up at night), but whether they are actually useful and easy to use.

Yesterday I spent the day chatting with other entrepreneurs and venture investors about the best way to run a beta test and gather input to continually improve the product.  Saar Gur from Charles River and Bob Geiman at Polaris were particularly insightful, but everyone I spoke with seemed to share the same three pieces of advice:

1) Pick beta testers that share your core vision
At this point, we have a number of agencies that have raised their hands to participate in the AdHatchery beta program.  Most of these agencies found their way to the AdHatchery website over the last month or so, saw only a log-in box, looked carefully for a tiny light-grey “Contact” link at the bottom of the page, sent me an email and asked to get involved.  This tells me these people are committed to solving a real pain point.  We hope that all of these early users will engage deeply with the system, provide rich feedback and put up with the inevitable bumps in the road because they share our vision and view of the world – that more openness and transparency can improve our industry. If you fit this profile and want to be a champion within your agency, please reach out to me at clay@adhatchery.com.

2) Set clear metrics
We’re focused on proving three things in the beta: 1) that we can easily on-board agencies and engage planners to fill out client profiles, 2) that sellers with access to these profiles will create and submit thoughtful, targeted ideas through AdHatchery and 3) that planners find value in judging sellers through targeted pitches on the system.  As such, we’ll be looking at a number of hard metrics in particular:
- # of users (planners and sellers)
- # of buyer “accounts” – ie. Liberty Mutual or Dunkin Donuts.
- # of categories (brands or business lines or objectives, etc.) per account – ie. Liberty Mutual’s Responsibility Project or Dunkin’ Donuts’ Regular Refills program.
- # of sellers that receive access to each account
- # of ideas submitted to each account
- # of ideas “starred” by each account
- Frequency of log-in and time spent on the site by both planners and sellers
- As we roll out more buyer feedback tools, we’ll also be looking hard at how often buyers give specific feedback to sellers on their ideas through the system.

3) Create feedback loops
We’re hungry for feedback.  We want to know exactly what people like and, more importantly, what needs improvement. We’re not afraid of criticism – in fact, we thrive on it.  We’re spending time in person gathering input, but we’re also implementing tools in the application to provide for real-time feedback as users are working.  The first is Zendesk – you’ll notice a large “Support” tab on the left side of the screen throughout AdHatchery.  Simply fill out your question or problem, big or small, and we’ll get to work on it immediately.  We’re also looking at implementing various survey tools like SurveyMonkey and Kampyle to gauge user satisfaction, so you may be prompted to fill out quick survey from time to time. We'll keep them short and on point, and will treat your input like gold.

Exciting day

AdHatchery.com is officially live. We’ll be launching with a variety of agency partners over the next several weeks that will be testing the product and telling us what works / what doesn’t work. They’ll also be referring trusted sellers to the system, and we’re anxious to  hear their feedback as well. 

In earlier posts, I promised to give more detail about the AdHatchery product. I’ve posted a quick presentation below that I delivered to an audience of agency leaders at the iMedia Agency Summit in Scottsdale in December (huge thanks to Jim Nichols and John Durham at Catalyst:SF for the help there). The main theme re: inefficiencies in the current buyer/seller communication paradigm seemed to really resonate with the audience. In fact, several of the agencies we met at the conference will be participating in our beta.

Please note that any agency and seller names in this presentation are purely for example purposes. They are not current clients and are in no way affiliated with AdHatchery. That said, we hope to work with them soon!  Also, while we love Scribd for giving the world easy functionality for posting presentations, we've found their converter is not always perfect (as you'll see in the pres below).

Click here to download:
AdHatchery pres for Angelvine.pptx (5.87 MB)
(download)