SXSW Interactive is just around the corner, and while I’m planning to attend for the third straight year, I get a lot of blank stares from people when I ask them if they are going. If they’re really out of the loop, they say “what business reason would I have for going to a music conference?” I then go through the process of explaining that, while music is still what SXSW is most known for, it’s only 1/3 of the puzzle. After we get to that point in the conversation and I explain the Interactive portion, I usually hear “well, ok, what does SXSW Interactive have to do with performance marketing?” On the surface – nothing. But, peel back the layers a bit and you’ll find a wealth of knowledge to give your business an advantage.

Let’s start off by talking about what SXSW Interactive is – from their site:

“SXSW Interactive features five days of compelling presentations from the brightest minds in emerging technology, scores of exciting networking events hosted by industry leaders and an unbeatable line up of special programs showcasing the best new websites, video games and startup ideas the community has to offer.”

In plain terms, SXSW is about inspiration, innovation and outside-the-box thinking.

The performance marketing industry is at a crossroads. Government regulation has forced many companies to close their doors and others to change the way they do business – almost overnight. The industry is searching for a beacon of light – but look around – most people are doing the same things – running the same offers and competing for the same business. I think that SXSW is exactly what people in our industry need: Inspiration, innovation and outside-the-box thinking.

Performance marketing, or any type of marketing, is not just about customers, products and sales. I mean, sure, on the P & L statement it is, but the reality is that successful marketing TODAY is about trust, brand loyalty, word of mouth and an ongoing dialogue between consumer and merchant. That’s what’s gotten us into this mess to begin with – unscrupulous business practices that eroded the trust of the average consumer in performance based marketing programs. Are you with me so far?

If you’re still on board and still reading, then let’s talk about HOW we get back that trust. The companies that are doing well today in the online space have likely embraced a more active approach to communication and dialogue with their customers. In today’s business world, that involves the use of technology including social networks, blogs, forums and video. You also need a way to measure and tweak your involvement in each channel. THAT is where SXSW can really help. So much of the content offered can help us think of new and unique ways to become better marketers. For example, maybe you’re looking for a better way to engage an audience using social media. Or, maybe you just want to hear first-hand what Twitter has in their 2010 plans for business users. Or, how about learning the latest web design techniques to help you make the most of the semantic web?

During my last two visits to SXSW, I’ve seen some really innovative stuff. My first year I saw attendees using Twitter and talking about using it for customer engagement in a way I had never seen before. The idea that a company could (and would) choose to service their customers in such a public way was really a stretch at the time. Now it’s becoming the norm.

Last year, I saw Tony Hsieh, CEO of Zappos, give a talk about his company’s secret to success: Deliver happiness. Seriously – that’s what he said. I started listening to Tony’s talk with skeptism, but in the end, he had me. And, obviously they are doing something right – Zappos had revenue of over a $1 billion last year and were acquired by Amazon for over $900 million. I left Tony’s talk totally up-ended. Could the key to a company’s success so heavily be tied to a corny customer service mantra? I’ve had these types of “a-ha!” moments over and over at SXSW.

Have I sold you yet? OK, how about this – consider the fact that Shawn Collins – Co-Founder of Affiliate Summit attended last year. Most would agree that there are few people that understand the affiliate marketing world as well as Shawn. If it’s important for someone with so much stake in staying ahead of the curve in the performance marketing world, shouldn’t it be on your radar?

Last point – and this a big one. Beyond the draw of innovation and inspiration, SXSW is an untapped market for affiliate marketers. We all go to the same shows: ad:tech, Affiliate Summit, Affilicon etc. Those are obviously aimed squarely at our industry, so it’s no surprise that the expo floor is filled with networks, advertisers and publishers. You’re competing in a sea of blue sameness with people that offer the same exact thing that you do. That’s not the case at SXSW. Most of the companies there are trying to get their product or service off the ground. They’ve created a killer app, product or service – yet they have no clue how to market it. Why aren’t networks there trying to sign them as advertising partners? You’d be the big red whale in that sea of blue. In a way it’s sort of ironic that the very companies there that can inspire us and help us find creative solutions to our dilemmas are also many of the same companies that need our help in reaching a larger customer base.

We’re all watching our travel dollars a little more closely these days. Conference events are expensive and you have to be able define goals and spend your event dollars in a way that meets or exceeds those goals. Sure, attending SXSW probably requires you to think a bit outside the box we’re used to trapping ourselves in, but the results could be exactly what you need to take your business to the next level.

I’ll see you in Austin.