The Consumer Driven World

One of the most visible trends in marketing over the last few years has been the shift from the corporate driven world to the consumer driven world.  Essentially this means the consumer is no longer accepting the terms that companies dictate.  Consumers now demand that they be part of the equation; they want transparency, communication, and personalization.  They want to give feedback and see it reflected.  They don’t want companies to create bland cookie cutter experiences for all, they want companies to recognize the value of each customer and show real interest in wanting each specific customer to come back.

 

This trend is illustrated in the 2008 Yankelovich Consumer Insights Report from a unique perspective.  The Yankelovich report highlights “consumer needs and vital signs.”  One set in particular points to consumers following an “inner compass” and this being projected by the “need for personal authenticity.”  This means consumers overall will not be satisfied with brands that don’t show real interest in connection and don’t leverage the brand/consumer relationship.

However, brands don’t have to feel like they are conceeding control or being forced to put in more work per person.  Consumer involvement with the brand is a personal investment by the consumer, and enables a higher ability for the consumer to relate to or self identify with the brand.  The consumer is then more likely to come back if the relationship is reciprocated, as well as more likely to evangelize the brand.

This partnership also produces a stronger product that is more valuable all around.  The brand now has a source of free feedback, testing, and insight; the consumer reaps the benefit of a better product that is, ideally, more tuned to their tastes.

A side theme that is developing from the consumer driven world is the return to the values of the mom-and-pop product.  Chris Brogan higlights this insight through his experience with his local book store.  He is relating it to the experience he hopes to feel from social media, but I think the point goes farther.  The woman who runs his local book store designs a personalized experience – she makes recommendations by knowing her customers, converses with her customers, makes them feel at home and gives them added value (in her case, food while her customers browse).  Social media can be one of the conduits for brands to cultivate this type of experience with their customers, but the lesson is greater than just social media – it’s the new formula for success.

A key example of this transition is being seen right now with Starbucks.  The giant that created a standard for quality throughout their chain and grew to great heights on that dependability is loosing market-share due to impersonalization.  As a result, the company is scrambling to find ways to turn their stores into communities that better embrace their customers.  They are participating in social media and developing online networks, but the shift will also have to take place in their stores.  Right now if you go into Starbucks they ask you to fill out a short online survey in exchange for a free tall drink of your choice.  One of the questions they ask is: Is the Starbucks where you purchased this cup of coffee a central part of the local community?  I don’t know if many people right now will say yes – but by this time next year I think this question will be seen as a driving force behind many changes we expect Starbucks to make this year.

Making a Market vs. Taking From It

Another good post from Seth Goden, this time discussing the difference between Making a Market vs. Taking From It.  His examples are clever in that they illustrate his point but may not be the obvious way you would think about the concept.

Making the market: “By combining protein and chocolate, we’ve developed a new food that’s both dessert and dinner” - The first thing I think of here is the Snickers Marathon bar; I’m not sure I totally believe it’s invented a new market, but then again maybe I just didn’t buy into it.

Taking from it - “This has a touch screen, too, but you can get it from Verizon” - Since the iPhone came out, there have been a number of these that all feel like runner ups for people that can’t get out of their contract or don’t want to leave Verizon for the better service.  Pretty much none of them, though, have pushed the market forward (though the BlackBerry Storm might).  On the other hand, the T-Mobile G1 is the cell phone version of making the market – by taking some of the best of the iPhone and the Blackberry and creating a hybrid market that appeals in a different way.

The decision to make a new market or take from it will be based on many things – how strong your product is, how appealing it is, whether it is only ready to piggyback on existing success – there are probably more brands & products that piggyback (and to success) but it’s the inventors that we’ll remember.

A Deep Dive Into the Latest Nike Lebron James Spot

 

Ian Schafer wrote a great analysis of the new Lebron James Nike Commercial; all things to think about when you are building out advertising and wondering if it will really connect with your target (the elements may change but the mental process needs to stay the same)

This spot is phenomenal because it does the following: 1) It shows that Nike gets LeBron. 2) It shows that Nike gets basketball. 3) It shows that Nike gets the intersection of basketball, hip hop, and street culture. 4) It shows that Nike gets music. 5) And if you’re savvy enough to understand all the finer points of the spot, Nike understands you. Sheer brilliance. Yes. TV spots can still be great at telling stories — but the web is a great place for continuing their discussion.

Side note – didn’t Lebron steal the chalk toss from Kevin Garnett?

[cross posted on my k. b. skobac personal blog]

Learning From Seth Godin’s Gravity vs. Evolution Marketing Theory

This week my team has been in an interesting discussion about the different lessons we’ve taken frfrom Seth Godin’s recent piece Gravity is just a theory. The basic premise, naming something that people already believe in is very smart marketing, lives both in reframing existing ideas (such as Gravity) and answering existing wants (the iPhone as an answer to everything we already knew we wanted in a phone).  On the reverse side, evolution faced an uphill battle because it required people to abandon their current school of thought, as well as because the timeframe of the message was longer than the attenion span (in the case of evolution, the lifetime) of the audience.

I originally introduced the article to my team and presented the idea that relaunching the ONDCP’s Anti-Drug  message as the Above The Influence message in November 2005 was a powerful marketing tactic that repositioned the message to fit Godin’s “gravity” outline and away from his “evolution” outline.  In essence, the Above The Influence framework took Anti-Drug and reframed it in a way that most people already think is a good idea – to be yourself, be the best that you can be, by being above the influences in the world.

Someone else took an alternate lesson from the article.  He pointed out Godin’s principle that the timeframe of the message relevancy in fitting with the audience’s attention needs to be paid close attention to.  This leads us to consider whether the campaign needs more pro-active in showing how being above the influence can benefit people in real ways, directly within the window of time that the decision is being made – either tangibly or emotionally.

Still another person reading the article took away a completely different learning.  Focusing on the line Persuading someone to start a blog is evolution marketing. Lots of people have been brainwashed that they have nothing to say, or can’t say it, or aren’t allowed to say it. And you rarely see someone become an overnight blogging success, we discussed how mindsets have to change to really believe that contributing content to facebook, twitter, yelp, etc, really have value and matter to our social graph.  This lead me to read up on Chris Brogan’s opinions of The Annotated World, essentially pushing us all to see the value in incremental contributions (another discussion for another time).  The discussion doesn’t relate to my job as much as it relates to the evolution of communication and social interaction in general, but it is significant none-the-less.

All in all, I highlight this because Godin’s article on Gravity vs. Evolution Marketing really stood out to a variety of people in very different ways, and generated internal marketing discussion in a way that rarely happens on a higher level above our day to day work.  I will look to highlight more of his thinking and the critical analysis it instigated in further posts.  I invite comments.

Case Study: Social Media and the Ad Council

This is a really interesting example of tapping social media for social good.

Deep Focus, an innovative ad agency, created a viral social media campaign for Ad Council basically asking people to sign up to host widgets for a particular cause of their choice, to “donate their social media”. It’s similar in a way to what we ask Teens to do when we offer “Frank” or “ATI Wall” badges for Above The Influence. Here’s a slideshow case study (though you’re missing the commentary):

Social Media for Social Good

View SlideShare presentation or Upload your own. (tags: social media)

and here’s the CEO of Deep Focus, Ian Schafer, speaking about the initiative on his blog.

Now that virtually everyone is a content producer to some extent, everybody has a platform to spread their message – brands can leverage this in many ways. One company that is helping brands that don’t have a product themselves that they believe consumers want to evangelize is SocialVibe; SocialVibe connects brands with causes, and the pair with consumers that want to spread the word. Consumers can pick a sponsor and a cause and place a badge on their social media page, which generates awareness for both. For every person that chooses a specific advertiser, the advertiser donates money to the cause – it’s win/win for all parties. It’s giving big brand advertisers the opportunity to leverage the power of social action and social media, and it’s enabling people to raise money for causes they care about.

Learnings from Michael Eisner about the Online Video Industry

Michael Eisner, former CEO of Disney, formed Vuguru in 2007, a studio designed to develop video exclusively for online and mobile applications.  On October 7th, he spoke at the VEOH Insights: Watching The Web presentation about the future of the online video industry.  He came off as funny and insightful, and he’s betting big on the future of online video, so it’s worth paying attention:

On Hulu and video portals: 
Hulu is a “middle game” – it’s not content produced for the web, leveraging the web, though what it does it’s done very well.

MySpace has the audience and the streams to dominate in online video, but they don’t have a clue how to make it all work.

On online video advertising:

The industry needs to lead the advertisers – it can’t let them define their own ad executions that don’t fit into the content.  Show them why it will work your way, everybody has to be convinced.

Audiences are conditioned for commercial pods.  They will accept a :15 sec interruption.  Interruptions need to scale to the show length.

Post-roll is dead, it’s like watching the credits.  A targeted contextual offer at the end that ties well to the content could be a fruitful alternative.

Behavioral targeting is like when a guy marries the same woman over and over.  It’s the Amazon model of assuming a person wants the same thing he just purchased.  But most people aren’t that predictably consistent.

On quality of content:

South Park and other low resolution shows are essentially radio, they leverage the elements of good radio to be successful.

On the web video industry:
Video right now is lead by the distributors – the people looking for eyeballs, worrying about screens.  Cable came into it’s own when it started producing it’s own content.

Online video needs professionals, not automation, to really take off.

TV may be the big guy at the party for the next few decades, but the idea of ‘on demand’ is the future.

Shows that are cultural phenomenons (Seinfeld for example) took commitments by the networks.  They failed early, but the networks believed and gave them time to win the audience over.  An online property needs to have that presence of mind – it’s got the capability, it has the audience and the ability to syndicate instantly.

In any business, you can be too early or too late – we’re not sure yet for the online video landscape where we stand.

On Back On Topps and Vuguru:
Back on Topps is a new show by Vuguru.  It’s exclusive for a 12-hour window on Fox Sports.  Windows are a TV model that defines length of exclusivity before pushing into syndication.

Back on Topps has in-show ads for Skype that have been made funny; Reeses Pieces was made by Speilberg doing the same thing (inclusion in E.T.).

Back on Topps will ultimately be a half-hour show rather than just 5 minute episodes.  Vuguru is committed to testing the limits and longevity of the show.

Prom Queen was translated and pushed out to international audiences, and saw success.

For an example of his recent work, check out Back On Topps
Cross posted on my Advertising Blog

Marketing Advice: Tailer Content to the Medium and the Audience

Richard Edelman reminds us that doing a single mass campaign with no regard to the nuances of your different potential audiences can result in you missing a connection to any of your potentials:

Content should be customized to the medium and the demographic group. For example, according to Fox, both Latino and African American young men use their mobile phones “like Swiss Army knives” in that they use them for everything. Therefore, to reach that group, content must be in easy to access text format. Here are statistics from Estupinya: among Hispanic English-dominant speakers seeking health information, the web accounts for 53% of total media interaction while radio is 35%. Among Spanish dominant speakers, the web accounts for only 17% of media interaction, while radio is 53%.

This is important to remember – consumers want brands to speak to them, and that requires the brand to communicate with them in their voice, and in their environment.  It may take more investment, more time, but it will give your brand the authenticity that is needed to connect.  Otherwise you might end up wasting all of your efforts.

Marketing Advice: With Information Overload, Opportunity for Trusted Sources and Reliable Currators

On his blog, Richard Edelman speaks about the need for trusted sources and curration in the age of information overload:

Information overload is causing paralysis and poor decision making. Professor Schwartz’ book, The Paradox of Choice, points up the need for trusted sources to break through the morass. He contended that there is more concern for influence than veracity, adding that with the need for speed comes inaccuracy and lack of peer review. “You retain trust by making sure those who receive information understand what you are saying.”

The opportunity is there for brands to position themselves as trusted authorities and curators of valuable content, to provide a valuable service to their consumers, and reap the benefits of staying top of mind, as well as a valuable voice in the relevant conversation.  Urban Outfitters is trying to fit this niche by developing local blogs in a hip web environment that calls out the cool culture things to do in major cities.  It’s giving their consumers another reason to come to their site, a valuable one that just might increase their brand affinity and ultimately increase sales.

Notes from The Future of Media Panel

The panel on The Future of Media was a collection of brilliant minds all looking at the media landscape from different historical backgrounds, different working positions, and different needs for the future. All of this lead to a dynamic conversation that leveraged the broad opinions across the panel to come to some vague truths, but more importantly some important learnings about how to continually approach the future of business in general. Overall it was a 2 hours we worth spent listening to a rare group of people that respected each other, respected the challenge of the discussion, and will likely be some of the key drivers in the developing future media landscape.

In no specific order, here are some of the key topics and ideas that I thought were interesting:

• Yahoo and AOL are examples of great companies with valuable products thcat face the weighty challenge of unwieldy expectations; if a new company reached their traffic and income levels, they’d be the darling of Wall Street

• A challenge that websites face: web browsing is fragmented, and so all of a single website’s audience is able to be reached somewhere else. This is why YouTube has millions of users but nobody really needs to chance advertising with them

• When Google’s revenue growth slows, investors will start to start asking why it is subsidizing the internet’s video streaming with no profitability; businesses need to start thinking about what’s practical versus what’s possible

• The future of brands in media is uncertain
  • proponents of brands as significant believe that brands organize perception and author trust, which is all the more important in this ‘everyone has a voice’ landscape
  • proponents of brands as outdated believe that brands are overvalued premium prices on content that’s readily available from countless sources and that millions of people are ready to produce for free

• The opportunity with social networks is the massive information layer that’s being formed. The true value for Facebook won’t be within Facebook itself, but leveraging the data that’s been collected as an information platform that can enhance targeting outside of the individual web property. This will be the power of Facebook Connect – allowing brands to leverage the detailed personal data that Facebook has collected about its users to enhance product relevance and advertising matching on partner sites

• Data is a currency and a commodity – how you leverage data is a key question. Project Canoe is broadcast television’s attempt to add a data layer to their product in order to provide both a better product and a better value to advertisers, and it’s a key to broadcast television’s continued profitability

• Right now behavioral data is a currency but is that a generational thing? If it becomes apparent that the sale of behavioral data is a trojan horse, then future generations will value privacy more
  • On the other hand, is there even a possibility of privacy in the future? This may have died the second camera phones became ubiquitous
  • Andy Warhol “We’re all famous, now how long”
  • The electronic footprint – will it enable transparency (in the ‘08 presidential election we learned of Edward’s affairs for example) or will it force us to shut down in order to preserve what little privacy we have left

• The future of media is imagination and courage; the courage to brave new approaches and reinvent yourself time and time again, the imagination to think of how to do so
  • One example of a brand with imagination is Uniqlo – a creative idea spurred it from a small Japan retail chain to a global phenomenon through the development of Uniqlock http://www.uniqlo.jp/uniqlock/

• Users will want to pay for services on the internet when they see the value of a superior product that can only come through funding; right now, services are surviving without revenue due to relatively low cost structures, but soon the millions of websites and start-ups will need to show profit, and we will lose the services we treasure that were offered for free because advertising can’t support everything

• We are the point of devaluation of content - we’re seeing this quickly with music, the music itself is being pushed to zero, and the music industry has to find value around the music (around the content)

• “Music will never again change the world because of how it’s passed around now” – Neil Young
  • We have lost the ability to experience awe in the way that single instances of content creation could once jump start a nation
  • To be on the cover of Time used to mean you had reached the pinnacle – there is no single powerhouse left that can create such a stir
  • Is the internet in this way actually destroying community in its quest to unite everyone on one level?

• Technology enables the path of least resistance - expect that the internet and computing as we think of it now will die as technology enables more robust mobile consumption and rich interactive television enables us to consume content on the big screen (this is Mark Cuban’s bet)

• One investing truth: when everybody is looking in one direction, then the opportunity to create value is in a whole different direction
  • This may be true for Mark Cuban, but plenty of firms are successful investing in emerging web trends. It may be that the degree of return is correlated to the degree of which you can step farther in front of the wave

• There are interesting opportunities to find value and reinvent in this landscape because everyone is focused on one specific landscape – the internet. This is why Rupert Murdock was able to buy the Wall Street Journal – it’s loss of valuation despite its profitability and it’s significant brand value. Murdock buying WSJ is an example of opportunity in chaos

Speakers

Moderator: Ken Auletta, The New Yorker

Cathie Black, President of Hearst Magazines

Mark Cuban, Chairman of HDNet & Owner of Dallas Mavericks

Randy Falco, CEO of AOL LLC

Jeff Goodby, Co-Founder of Goodby, Silverstein, & Partners

Bob Guccione Jr., Guest Editor of MediaPost

Nigel Morris, CEO of Isobar

Joe Uva, CEO of Univision

Susan Whiting, EVP of Nielsen Company

Michael Wolff, Editor & Columnist of Vanity Fair

Paul Woolmington, Founding Partner of Naked Communications

Online Video Relative to Broadcast TV, Focusing on Pricing and User Engagement

After attending some great talks from video vendors, and spending too much time this summer thinking about Online Video, I’ve compiled the following white paper on Online Video:

Online Video Relative to Broadcast TV, Focusing on Pricing and User Engagement

Online Video Relative to Broadcast TV – Research White Paper 9 5 08 – Upload a Document to Scribd

Please note that I have cited all of the research, but I am not a formal research company; please pay attention to the sources.

Thanks to:
Tod Sacerdoti, CEO Brightroll
DoubleClick AdServer
Break Media / Panache Research