Mechanism - Engineering Viral Marketing Essay

1377 Words Jul 17th, 2014 6 Pages
In early 2011, Jason Harris, Mekanism’s president, and Pete Caban, CEO were considering converting Mekanism from a specialized, niche production company, to a full-service ad agency. At the time, Mekanism was a digital social media production company that developed viral marketing campaigns for various firms. They had great success seeing 68% annual growth in billings which was fasted than they had predicted. In 2010, they saw sequential increases in profits, but only 10% growth in billings with fewer clients signing on. This posed a unique situation for Mekanism offering a couple of options. They could remain a niche creative shop that specialized in viral marketing where they had proven success; or they could transform into a full …show more content…
The last property is that the ad must be easy to track. The number of times the ad is viewed, shared or passed over must be quantifiable. This is the only way to tell if the campaign is successful or not.
Mekanism had an advantage in the marketing industry: they saw viral marketing as a viable source from an early stage. By 2007, client companies that usually hired ad agencies to implement campaigns, found themselves splitting work between the ad agencies and small niche agencies to carry out the digital portion. This put Mekanism in a unique spot since they could offer large corporations the ability to consolidate all of the work into their company. Ian Kovalik, Mekanism’s creative director stated that, “It was unusual at the time to focus on digital media. So when the market shift happened, big ad agencies lagged behind and had to adapt”.
As Mekanism began to take in business from big brands such as Pepsi, Nike, and Microsoft; they began to experience tremendous growth with 32% year-over-year growth from 2007-2010. At the time, products such as TiVo allowed consumers to completely bypass TV ads which gave heavier weight to viral campaigns. Viral campaigns allowed small companies to reach millions of people for a fraction of the cost. However the problem with viral campaigns was that very few of them reached a large target audience. At the time, only 3% of videos on YouTube had over 25,000 hits. This is where Mekanism set itself

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