Modern Marketing - Blog by Collaborate PR & Marketing

How Small Change Became Big Money

About six years ago when my late mother was in her seventies she told me how amazing she found the choice that people had in the modern workplace.  'We just used to get any job we could and hold on to it for as long as possible', mum remarked, 'but you’ll see some interesting changes'.  'In new technology?' I suggested.  'Oh no, in people’s lives', she said.  I was reminded of this conversation recently when a super-talented designer friend of mine described how he had taken an idea for a new iPhone application to someone he knew at a major London advertising agency – who snapped it up for a MegaBrand client.  This turned out to be a bad move.  Many months of pain followed as my buddy defended his idea from the agency strategists, brand police and finance folk.  Including a demand for a multi-thousand pound insurance policy in case the app damaged the iPhone of a hypothetical customer in an unknown corner of the world.  At the end of the process (the app in question never made it online) my friend reflected that he should have cut out the agency and just put his idea straight up onto Apple's AppStore.  That he explained would have meant, ‘less pain and more money’.  And he’s not alone in this view.  There are currently 41056 apps available in the iTunes AppStore - many the work of individuals.  Between them they've been downloaded one billion times in just nine months.  Some estimate that the average revenue from a top 100 application could run to $12k per month.  While others are thought to make a lot more.  There’s no doubt it’s an extremely competitive, quite chaotic marketplace but considering it’s not even a year old that's pretty amazing.  Other direct routes for individuals to go to market include the Facebook Platform that allows people to create products and services and distribute them to the social net’s 200 million users.  SAI recently noted that Facebook developers, many of which are solo agents, will collectively make about $500m this year – possibly more than Facebook itself!  And then there’s...

Open Data And The Dangers Of Moats

As all studious web watchers know, the next wave of internet innovation has been brewing for some time, as massive amounts of data has been pumped onto the web and made available for people to share-and-compare, play with and link to.  Yes, prepare yourselves people, The Web Of Data is on the way.  A world in which databases sit out on the web instead of behind firewalls, allowing new powerful styles of collaboration.  For corporations that have built competitive advantage around IP and black box business models the idea of data being open on the web is, to say the least, a bit scary.  However, in reality, it's just the next step along the journey that the web is inviting the world to take.  Initially, the notion of sharing documents on the web seemed unwise, then opening up personal information on social networks appeared risky.  But both have quickly become the norm, and of course are made up of data.  So this next evolution is just more of the same.  None of which will stop the corporate fear rising however.  In the same way that strange ideas emerged about the dangers of sharing company information using simple social media tools, peculiar fears will surface at the prospect of sharing databases that have previously been held under lock, key and firewall.  In fact, many of these fears are based on misconceptions and misguided analysis.  For instance, in the corporate world ‘open’ is often translated as ‘anarchic’.  Despite the fact that, as with blogs and social networks, there is plenty of control built into new 'open' systems.  For example, if you don't want the crazies to...

Buffett On Newspapers

'If Mr Guttenburg had come up with the internet instead of Movable Type back in the late 15th Century and for 400 years we had used the internet for news and all types of entertainment and all kinds of everything else, and I came along one day and said I had got this wonderful idea, we are going to chop down some trees up in Canada and ship them to a paper mill which will cost us a fortune to run through and deliver newsprint, and then we'll ship that down to some newspaper and we'll have a whole bunch of people staying up all night writing up things and then we'll send a bunch of kids out the next day all over town delivering this thing, and we are going to really wipe out the internet with thing - it ain't going to happen.'  Warren Buffett talking on CNBC. (via SAI).

Can The Big Egos Please Leave The Building

Most marketing agencies have a few big egos knocking around, often in the creative department.  Frequently the belief is that such individuals are required to come up with the Big Ideas that clients love so much - the brand propositions that everyone in a company can convene around and CEOs can sink the big bucks into.  Sometimes these individuals are able to get away with *ahem* unusual behaviour because it is excused as the flip side of their Big Thinking.  However, this breed may well be coming to the end of its life-cycle.  Why?  As marketing communications become more about pull than push, community over control, peer power not promotion, the personalities involved will reflect that.  Skillful community managers tend to be thoughtful folk - and good listeners to boot.  They are blessed with a natural curiosity about people and an ability to promote the views of others.  Or in other words, a mental make-up that is diametrically opposed to that of your typical Creative Director.  Take Craig Newmark for example, founder of craigslist and one of the world's most successful online community managers.  He has built a 'community service' that covers 570 cities in 50 countries and serves twenty billion page impressions a month.  However, despite being one of the web world's real superheroes, Newmark is best known for his modest profile, including a job title that remains, 'Customer Service Representative'.  Indeed, the idea of a Big Idea seems to be entirely irrelevant to Newmark who says his online empire was built with, 'no vision whatsoever', and that it's, 'all about listening and then listening some more'.  His focus was purely to build a, 'culture of trust'.  Which, of course, all makes a lot of sense.  It's perfectly evident that people would want to join a community based on Newmark's guiding principles of, 'giving people a break' and, 'treating others as you want to be treated'.  Compare this to communities driven by the brand-as-hero school:  my favourite example of which remains Wal-Mart's short-lived community site, The Hub.  The network launched with a range of fun tools for customers to play with, including an invite to create a list of the things they would like to buy at, er, Walmart.  It was the online equivalent of an ego-maniacal CD - 'Enough about me - how do you like my hair?'.  So next time you are with a Big Thinker who is being 'difficult', just relax and let them talk.  Take heart in the fact that the world has heard everything they have to say.  And is just about to switch them off.

Scary Signals

'P2P is a demand signal from the market,' says Cory Doctorow.  If that's the case, what are we to make of The Pirate Bay conviction last week?  For those who don't know, Pirate Bay is one of the world's largest Bittorrent search engines.  It allows people to search through the gazillions of TV shows, films and other entertainment that sit on the web.  This content is broken up into tiny parts and stored across distributed networks of computers, until someone makes a viewing request at which point Bittorrent or another P2P technology will draw the pieces together and put them back in the right order, ready to watch as a film or TV show.  The problem, of course, is that this distribution method is not sanctioned by the people who make and own the content, most of which appears without any advertising.  That's the advertising that pays the wages of the people who make the films and TV shows in the first place.  In the Pirate Bay case these good folk were represented by the IFPI (aka Hollywood).  So why does the world's entertainment industry persist with legal recourse, instead of listening to the 'demand signals' being sent to them through P2P?  The main reason is that P2P file-sharers have been seen as people who steal valuable IP. They must, therefore, be treated as thieves.  But that's misreading the signals.  The real driving force behind the growth of P2P is that it's convenient and gives people what they want, when they want it.  What if you don't want to wait a week to see the next episode of 24?  Or maybe a friend abroad has told you about a great new movie and you want to see it now so you can discuss it?  And, vitally, P2P is also a way for regular folk to distribute their own content and pursue the rock star dream.  Furthermore, with one third of all broadband users worldwide admitting they use P2P there's a massive network effect in place.  One that the entertainment industry will probably never be able to reverse.  However, the truth is that all of these signals are just too terrifying for people in the industry to listen to.  As Mark notes about the latest Digital Britian bashola, many executives in the entertainment industry and beyond, 'are paid to keep the current model going and just don't want to see the digital technology as anything but a means to turbo-charge the current model. It's just too scary to contemplate anything else.'  And this is why Pirate Bay is just one part of the massive bout of creative destruction occuring in our time.  After all, there are plenty of others perfectly happy to listen to the market signals if the uncumbents are too scared.  And despite this court case, Pirate Bay and others like it just keep on rolling, allowing people to create personal media platforms and services of their own design.  As Doc Searls says, 'in networked economies the demand side supplies itself'.

Picking Up Your Customers' Breadcrumbs

As the UK Parliament prepares to publish to the world 1.2 million receipts, invoices and bills from MPs' expenses claims, the media awaits to rummage through the detritus.  After all, it’s the tiny details about each others lives that fascinate us, right?  I sniggered along with everyone else about the viewing habits of Mr Jacqui Smith.  But it was the Home Secretary’s eighty-eight pence claim for a bath plug that caught my attention.  And I'm not alone it seems.  It’s this natural interest in sharing and comparing the details of our lives (intended or not) that makes the social web tick over.  For a long time, such titbits were left online only by geeks and the technorati.  However, now that forty-three per cent of the UK’s online population are members of Facebook, these trails of digital breadcrumbs are becoming more common.  It's easy to see these digital trails as banal.  Individual instances about breakfast habits, for instance, can appear quite pointless. However, when viewed as ongoing narratives, they become rich representations of peoples' lives. Narratives to which we can all relate.  For the marketing industry these breadcrumb trails should be viewed with delight, particularly during economically difficult times.  With a few simple tools, and a curious individual or two, it quickly becomes possible for a brand to...

When Your Customers Connect

The infrastructure of the web is in constant flux, which is, of course, why it’s so interesting.  However, occasionally a new fault line appears, often over a long period of time, that changes the landscape in a more fundamental way.  The new set of identity standards that have emerged in recent times, under the simple guise of reducing the number of log-ins you need to remember, are exactly that.  At first Facebook Connect, OAuth, OpenSocial and OpenID seem to be basic devices to get around the annoyance of multiple usernames and passwords.  Handy - but no big deal.  However, in fact, they are solutions to one of the main sources of friction on the web.  Currently, as you move from one social network to another, you may as well be moving between countries, setting up a new life in each.  Meet new friends, send some postcards to contacts and family from the old country, and then check out the tourist trail.  Hey, if you want to be a bit more glamorous in this new city, then you can be.  Your old friends aren’t there to ruin the illusion.  My usual cocktail please!  But the new identity standards are about to ruin this party.  And once we’ve got over the shock, we’ll all remember that it’s your real friends and family that count.  We’ll quickly get used to the idea that...

The Unthinkable Marketing Industry

Clay Shirky’s latest essay, that encourages us to 'think the unthinkable', set me wondering about what the marketing industry could be like.  The part of Shirky’s ‘unthinkable scenario’ that leapt out for me was the suggestion that, ‘people would resist being educated to act against their own desires’.  Shirky is, of course, saying that one effect of a networked world is that people have less faith in the lessons being handed out on Madison Avenue.  Now it’s quite clear that media is still the dominant force in the brand and marketing business, which despite tough times, remains a trillion dollar global industry.  Indeed, the idea of building brands through massive investment in this industry is the reason most marketing folk get up in the morning.  And media metrics such as reach and frequency have been a reliable way to fill marketing directors’ pension funds for a long while.  But that’s not the point of Shirky’s challenge.  His suggestion is to think the unthinkable by, ‘simply looking out of the window’.  So, if people are resisting the Mad Men's tutorials and the stranglehold of media is loosening, what’s next?  After all, people still want to find good stuff to buy and use, right? The end of media doesn’t mean the end of consumption or indeed of brands.  All of which requires markets.  But if those markets aren’t going to be media-driven, what will keep them moving along? What will make people act upon ‘their own desires’, and in doing so, keep the shekels flowing into our factories, showrooms and shops?  Where do we begin?  How about if we follow the advice of...

Social Networking - No Longer Just For The Kids

For a long time, social media was just for 'the kids'.  However, one of the most interesting recent online trends has been the take up of social networks by older groups.  For instance, Nielsen's latest research notes that a whopping forty-seven per cent of people who are online in the UK now use Facebook.  Furthermore, the report notes that, if recent trends were to continue, "by mid-June 2009 there would be as many 35-49 year olds on Facebook as 18-34 year olds."  With such developments in mind, the supersonic Danah Boyd has written up a great (and short) talk here emphasising that now social media is the norm, the time has come to focus on its uses rather than the technology itself.  Boyd's work is academic in style, but a couple of sections caught my eye: "Marketers know all about stickiness, but how many of you measure network density? You purchase all sorts of data from Nielsen and comScore that tells you about uniques, but do you know anything about the cluster dynamics of the users? Are you able to see when the network graph is reaching a sustainable point or, more importantly, when things are starting to fracture?".  And when it comes to product development:  "We can continue to design and deploy, but one of the amazing things that is happening in the realm of social media is that folks are starting to iterate with their users. This creates an interesting opportunity for us. We need to be able to evolve with our products as people begin to use it. This can be quite tricky, especially for folks who are used to a build, test, and deploy methodology. As a developer, you are no longer simply an author of software. You are an actor in a process in which software is being developed and repurposed. The key lesson from the rise of social media for you is that a great deal of software is best built as a coordinated dance between you and the users."

'Facebook Killed TV'

Paul Graham on 'Why TV Lost' : "This was the most powerful force of all.  This was what made everyone want computers. Nerds got computers because they liked them. Then gamers got them to play games on. But it was connecting to other people that got everyone else: that's what made even grandmas and 14 year old girls want computers. After decades of running an IV drip right into their audience, people in the entertainment business had understandably come to think of them as rather passive. They thought they'd be able to dictate the way shows reached audiences. But they underestimated the force of their desire to connect with one another. Facebook killed TV. That is wildly oversimplified, of course, but probably as close to the truth as you can get in three words."