LEGO Does a Netflix in Closing LEGO Universe
Posted on 07. Nov, 2011 by Joe Pulizzi in Blog, case studies, content marketing, LEGO, Small Business Internet Marketing, Small Business Marketing
It’s a sad week in the Pulizzi household. LEGO recently announced that, effective January 31, 2012, they were closing their multiplayer online game called LEGO Universe.
According to Jesper Visltrup, Vice President of Marketing for LEGO, despite having over 2 million registered users and very positive feedback about the game, LEGO could not convert enough paying members to keep the game viable.
Focusing on the Wrong Metrics
Now, I don’t know if this is a publicity stunt, or if LEGO plans on releasing a new online game, but let’s take the news at face value.
From all accounts, LEGO has determined that the success of LEGO depends upon direct profitability of LEGO Universe. Why? Why judge the success of brand engagement activity solely off of direct revenue?
- PlayLand areas at McDonald’s don’t produce direct revenue. They take up a ton of space and McDonald’s must employ people to keep them clean.
- Kraft’s iFood Assistant, even though an incredibly helpful application, doesn’t turn a profit. Kill it.
- American Express cannot directly prove that AMEX Open Forum drives more credit card sales. Bye bye.
Is this move by LEGO short sighted?
Let’s look at some numbers.
Let’s say, of the two million members, 50% are adults and parents. Then let’s take the remaining one million members and estimate that 10%, or 100,000 children, are somewhat active on the site.
My son spends an average of 30 minutes per day (that’s a low estimate) at LEGO Universe. If we use that as a general estimate (I know many children that spend multiple hours per day on LEGO Universe), that means an average user spends 15 hours per month engaging with the LEGO brand.
What’s the value of that engagement? Priceless.
I can honestly say that we have purchased a heavy does of LEGO products directly because of LEGO Universe. Can LEGO track it directly? Nope. But just because you can’t track it doesn’t mean it’s not working. It’s ROI gone a muck.
LEGO Universe was an innovation. It was worthy of being talked about.
Did LEGO Pull a Netflix?
Sometimes we marketers focus on the wrong metrics. For example, does a certain number of website visitors or Facebook likes define success? Of course not. For example, if a BtoB company has only 10 enewsletter subscribers, but those subscribers are the ten most important customers, it’s probably worth it.
The point here, as with all content marketing activities, is to clearly define what success looks like. LEGO Universe should be treated like any other consumer-facing engagement activity, not just off of direct sales. In this case, I believe the objective should not have been direct sales of the product, but ancillary sales from direct engagement.
Not happy with direct sales? Try these:
- LEGO Universe book sales
- Halloween costume sales
- Television and DVD specials
- Limited edition LEGO Universe products
And the list goes on.
I feel sad for those people that have lost their jobs creating an amazing product for loyal LEGO customers. I feel sad for the kids. I feel sad for innovation. But most of all, I feel sad for marketing in general. Marketing took a step back this week.
I hope I’m wrong. I hope.
Content Marketing Is Not New, But the Opportunities Are [Video]
Posted on 14. Sep, 2011 by Joe Pulizzi in American Express, Blog, case studies, content marketing, content marketing world, Fun Stuff, Get Content Get Customers, Junta 42, Junta42 Events, LEGO, Small Business Internet Marketing, Small Business Marketing, video
One of our goals for my opening keynote at Content Marketing World was to make sure the marketing professionals in the audience understood that content marketing is NOT new. This two minute video tells the tale (this video opened the conference):
Most people think that content marketing is a new thing, but it’s been going on since the time of the cave paintings. John Deere, and their customer magazine The Furrow, is given credit for the first content marketing initiative. At that time, farmers needed to be educated on the latest in technology so they could be more successful. Instead of buying attention, they created a print magazine in 1895, teaching farmers all about the latest in technology and trends for farmers. Over 100 years later and 1.5 million in distribution to 40 countries, The Furrow could be the most successful content marketing initiative in history.
Some other timeline facts you may not be aware of:
- 1900 – Michelin develops the “Michelin Guides” to help drivers maintain their cars and find decent lodging.
- 1904 – Jell-O distributes free recipe book that leads to $1 million in sales by 1906.
- 1930s – P&G creates and sponsors radio “soap” operas.
- 1982 – Hasbro partners with Marvel to create G.I. Joe series of comic books, which leads to a revolution in the toy industry.
- 1987 – LEGO launches Brick Kicks magazine (now LEGO Club magazine)
- 2004 – Microsoft launches Channel 9, one of the first corporate blogs from a major brand.
- 2007 – BlendTec develops Will It Blend? video series.
- 2008 – American Express launches Open Forum.
- 2008 – P&G creates BeingGirl.com for adolescent teen girls.
And on and on…
Brands have been telling stories for centuries. Content marketing is not new. Even so, there are more opportunities than ever before.
If content marketing was a baseball game, then we are just getting out of the dugout for the first inning.
Today, there are literally no barriers to entry when it comes to content marketing.
As Newt Barrett and I discussed in our first book, Get Content Get Customers, the following reasons have left the door wide open for brand marketers to become THE publishers in their industry.
- Buyers accept content from corporate sources more than ever.
- Shrinking media budgets are leaving an opportunity for YOU. You can invest in the research and content that the traditional media in your niche aren’t willing to do.
- Technology is accessible to companies of every size.
- Journalists, editors and content agencies like we have at Junta42 are willing and able to help you tell your story more effectively.
So, although creating valuable, compelling and relevant content (storytelling) for your customers and prospects has been going on forever, there is still time to make your mark as the leading informational expert in your industry.
For more on developing a content marketing strategy that works, Managing Content Marketing (my new book with Robert Rose) will help.
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