Modern Marketing - Blog by Collaborate PR & Marketing

Web 3.0 Is Virtual Dog Food Says Pincus

When you talk to people about the mega-growth in the sale of online virtual goods, the reaction tends to be similar to the first time they hear about Twitter.  ‘They do what!?’ – followed by rolling of eyeballs and looks around the room for mutual support about this latest round of web craziness.  It’s an entirely understandable response.  Why would anyone spend real money on, for instance, virtual dog food for their virtual pet?   Or more confusing still, why would anyone wish to pay $335,000 in hard cash for a virtual leisure club in Entropia, an online science-fiction world?  One way to move beyond the perplexing notion of people spending their shekels on such apparent lunacy is to stop viewing it as people buying ‘goods’ and start seeing it as people paying for ‘content’.  Albeit of a novel interactive variety.  After all, gazillions each year are spent on media content including cable TV channels, music, books and magazines.   And we don’t hear about the madness of people buying virtual goods from Hollywood.  But, just a minute I hear you cry, people don’t pay for content online do they?  Free is now the default, right?  It's the bugbear of Content Kings everywhere, including the Old Digger Murdoch who has thrown up the paywalls around his valuable content, even though he knows he'll lose most of his online readers.  It’s the reason that Hollywood has blocked Google TV accessing its AAA-productions in case Messrs Brin & Page repeat the havoc they unleashed on the newspaper industry by giving their treasures away for free to a global audience.  So what's going on?  On the one hand we have people paying good money for virtual dog food.  On the other a refusal to pay for the insights of cerebral journalists and the world's finest movies.   With these apparently contradictory trends in mind, I was interested to hear Marc Pincus, the CEO of Zynga, the social gaming empire, describe in this frenetic talk his theory that, ‘the third business plan of the internet will be users paying for things; often digital only, virtual and high-margin; and services that are found as apps.  I believe every major franchise on the Internet is up-for-grabs, just like it was at the beginning of Web 2.0’ (52 mins).  Well he would say that wouldn’t he?  Pincus’ company, Zynga, has made a king’s ransom and...

UK Media - Enjoy This 'Indian Summer' While You Can

I went along to an event this week entitled, ‘Making Money In the On Demand Media Age,’ hosted by consultancy boutique Oliver & Ohlbaum.   The session had the feel of an investment bankers’ world view and, as a result, there were plenty of Grand Fromages in attendance including Lord Hollick, ex-media baron turned VC; the much-admired broadcasting player David Elstein; Patrick Barwise the formidable LBS Professor and Government advisor and new kids on the block such as Richard Halton, CEO of the nascent UK web TV service YouView.  The initial presentation was a Meeker-esque onslaught of macro trends, backed up with some proprietary research that the room lapped up with a verve suggesting sober, grown-up analysis of the new broadcasting world is thin-on-the ground.   My overall impression of the hundred or so people in the room was something akin to a Monaco casino packed with high-rollers working out where to lay their next chips.  You could almost hear the neuro-based balance sheets ticking over as the analysis developed.  Among the many nuggets thrown out for the pack to chew on was that the recent speedier-then-expected recovery in the UK’s media markets might be something of a mirage.  One effect of the corporate axe being wielded in recent years is that profits have bounced back and there is a natural inclination for many big brands to invest straight back into what they know.  However, Oliver & Ohlbaum see this as being an, ‘Indian Summer’ before the realities of, ‘long-term structural change’ take grip in a couple of years and a, ‘new industry structure’ emerges.  What will this new world order look like?  In short, no one knows and in the follow-on session...

Digital Grapevines

It can be very difficult sometimes to understand what new technology actually means when it comes to changing the way people lead their lives.  Partly, this is because technology is created by techies.  By which I mean that the clever folk who create new widgets are, naturally, more interested in the gubbins inside the box than what consumers (aka people) are going to actually do with it. This leads to the classic marketing error that the technology industry makes on a continual basis – talking about Features Not Uses.  Nowhere is this viewpoint more prevalent than in the world of smartphones, tablets, mobile and wireless web development. The mobile space has a lot of the standard desktop web jargon but with its own additional lexicon bolted on for good measure.  For instance, Geo-Location, Augmented Reality, BBM, Accelerometer, Bluetooth, QR codes, RFID, or the cryptic, ‘Web of Things’.  And let’s not even get into the world of wireless OS upgrades : Cupcake, Donut, Eclair, Froyon and now Gingerbread.  It's enough to make your Google Goggles glaze over. However, now that smartphones have finally become a part of the mainstream, ten years after the UK’s 3G licence auction, it’s helpful to think what they mean in terms of people's lives beyond Steve Jobs’ bank account and the VC-driven, jargon-heavy dreams of Silicon Valley.  One aspect that’s of interest is that people now are increasingly connected to their friends and family - all the time.  This may sound obvious but it’s a fairly new phenomenon with far-reaching consequences.  People from small villages...