I’ve talked before about the new ways marketers are trying to engage with consumers. This ranges from QR codes to augmented reality and relies on using the one device we always have with us – the smartphone. Being able to pinpoint exactly where someone is, for example the specific aisle of a shop, means they can serve up relevant marketing material that could turn a browser into a buyer. It is no wonder that the likes of Apple and Google are investing in technology that can help make indoor mapping more granular and detailed.
The latest technology to be touted to drive engagement is the beacon. Essentially a small, low cost, Bluetooth-enabled box that can be quickly fitted inside a building, it enables companies to send messages to suitably equipped smartphones in the near vicinity. As beacon technology is built into the latest Apple products, there are already over 200 million iOS devices out there that can act as both receivers and transmitters.
The possibilities are getting marketers, particularly in the US, extremely excited. Companies can automatically send relevant offers if you are in particular areas of a shop, such as in front of their products (or, if you’re being sneaky, in front of your rivals’ products). Airports or train stations could send automatic updates on delays or gate/platforms changes. Beacons can be used to measure dwell time in specific areas and provide offers of help. William Hill is planning to use beacons to send in-app betting messages at the forthcoming Cheltenham Festival, while outdoor advertising companies are looking at how it can drive engagement with adverts. Mobile phone networks EE, O2 and Vodafone have invested to create a joint venture – Weve, to target the space, with Eat trialling their technology. The reason for the interest is that essentially beacons promise the same digital tracking possibilities as online, but in the physical world.
However there are a still a couple of elephants in the room when it comes to mass market adoption. Consumers need to switch on Bluetooth, download an app, enable location services for the app and opt-in to receive notifications. So, even though iPhones now come with Bluetooth on as standard you still need to jump through a lot of hoops to be beacon ready.
And then there’s privacy. Perhaps you don’t want marketers to know whereabouts in the shop you were loitering or what you are buying at a detailed level. As the success of social media and loyalty cards have shown, people are willing to give up some of their privacy in return for a better experience and targeted offers, but none of these are as instant and real-world as beacons zapping a message straight onto your screen in real-time. At the moment all the advantages seem to be skewed towards retailers, with very little concrete benefit for consumers that will make them want to go through the rigmarole of making their phones ‘beaconable’.
At a time when consumers are just about getting their heads round paying for things by swiping cards rather than laboriously typing their PIN, I think beacons have a big job ahead to accelerate consumer adoption. The whole process needs to be made seamless and simple, with a focus on the benefits, rather than looking like another way to invade privacy and sell you more stuff. Only then will beacons deliver the insight that marketers and businesses are looking for.
The world of work has changed immeasurably over the last ten years, not just in the UK but across all developed countries. Repetitive, process driven jobs have been automated, with technology replacing paper-based workflows. In many cases this has led to a hollowing out of sectors and companies, with the remaining workforce split between menial roles and higher level management.
And these changes are accelerating. A report in The Economist points to new technological disruption in the workplace, driven by computers getting cleverer and becoming self-learning. Lightweight sensors, more powerful cameras, cloud computing, the Internet of Things, big data and advances in processing power are all contributing to helping computers do brain work. Innovations such as driverless cars and household robots don’t require human intervention to operate, and can do more than traditional machines.
Research from Oxford University suggests that 47% of today’s jobs could be automated within the next 20 years. Many of these roles are in previously ‘safe’ middle class professions such as accountancy, the law and even journalism.
So, this begs two questions. What skills do people need if they are going to thrive in this new world – and are we teaching them to children quickly enough?
The employees of the future will require skills that complement machine intelligence, rather than mirror it. Empathy, the ability to motivate, and being able to think outside the box will all be needed. Essentially soft skills, backed up by specialist knowledge that is based on experience that cannot be replicated by machines. Professions such as therapists, dentists, personal trainers and the clergy are all seen as being relatively safe from replacement by robots. Interestingly entrepreneurs often possess these talents, so expect them to thrive as they use technology such as the cloud to bring their innovations to market quickly.
As a knock on effect, the will be a change in the size of companies people work for. Before the Industrial Revolution most people worked either for themselves or in small organisations (the village carpenter and his apprentice for example). Industrialisation required scale, so vast mega companies grew up. These won’t disappear, but the number of people working for them will shrink dramatically as intelligent machines take over. We’ll move to a larger proportion of the population being self-employed, providing their services on a personal basis.
Looking at education, schools will also need to change. Pupils need to understand the world around them, so they have to be taught a certain number of facts and dates, but rote learning of what made the British Empire great is going to be useless for a large proportion of people’s careers. What is needed is to teach skills for learning and adapting, thinking for yourself and how to motivate and show empathy to others. Essentially, children starting school today will be going into careers that may not even exist yet – so lifelong learning and flexibility are critical.
The predictions of the havoc that technology will cause to the world of work may be overstated – just because something is technically possible, it doesn’t mean it will quickly become mass market. And governments, worried about massive social change, are likely to step in to mitigate the worst impact through legislation. But changes are coming, and we need to think more like entrepreneurs and less like machines if we’re going to thrive.
Probably because it is a difficult discipline to predict, we marketers love the idea of systems that are proven to deliver results. Whether it is putting the call to action in a certain font, including a free pen with a mailing or emailing at a specific time of the day, anything that can help convince consumers is considered fair game.
So it is no surprise that marketers, and particularly advertisers, have long looked at psychology to help predict what will work and what won’t. I’ve previously talked about Mark Earls and the theory that, basically, we all want to belong to the herd, an ingrained, unthinking, attitude that makes us enormously susceptible to peer pressure.
Much of herd theory is related to the work of Daniel Kahneman, a psychologist who was awarded a Nobel Prize in 2002. His work (including the seminal Thinking, Fast and Slow), shows that the human mind is comprised of two systems. The first (system one) is intuitive, making decisions automatically, while system two rationalises the ideas of system one and sometimes overrules it. Essentially, what this means is that we think far less about decisions than we believe we do, and are much less rational than people expect. As Kahneman put it, “We are to thinking as cats are to swimming. We can do it if we have to, but we don’t particularly like it.”
Theories such as these are a godsend to marketers. If you can convince system one to like/buy something then chances are it’ll slip past the lazy watchdog that is system two without anyone noticing. Potentially scary if you are a consumer (or a citizen during an election campaign) but perfect for ad agencies.
Hence, as a recent story in The Economist points out, the phenomenal success of Cadbury’s Dairy Milk Gorilla advert, which delivered an ROI three times the industry average. In reality the advert had nothing to do with chocolate at all, but led with emotion (rather than information) and brand (rather than product benefits). Ad men love Kahneman’s theories because:
(a) They get the chance to do fun, extravagant ads that could win prizes rather than list the benefits of cough syrup
(b) Traditional ways of measuring ad impact don’t work with system one-led ads. So there won’t be an annoying (uncreative) market researcher telling you your ad doesn’t resonate with the audience.
As the current crop of Christmas adverts shows, reason and rationality have very much gone out the window, with a focus on brand, emotion and slowed-down songs sung by female pop stars. But I don’t think all is lost for the system two adverts – if they are clever, informative and delivered with humour they can appeal to our rational selves, and by being the opposite of the mainstream can stand out by being different. There’s always a trade-off – if all things were equal, most of us wouldn’t choose to fly Ryanair, but system two looks at the price difference on tickets and forces us onboard. So, before they get carried away, marketers and ad men shouldn’t throw system two out with the bathwater (or should that be gorilla?).
There can be a tendency in Cambridge to think that innovation ends at the city limits, and particularly that we’ve got the monopoly on tech startups in East Anglia.
Proof positive that this isn’t the case was on show last week at SyncNorwich, where more than 300 entrepreneurs, developers and members of the Norwich tech cluster talked about their diverse successes. This included market leaders such as FXhome, which produces special effects software for both Hollywood blockbusters and amateur filmmakers, Liftshare.com, the world’s most popular car sharing site and mobile interaction/payment firm Proxama. A whole host of newer startups, such as targeted mobile advertising company Kuoob, music community site SupaPass and educational software provider Wordwides (set up by a 16 year old) also talked about what they could offer.
There’s obviously been lots of activity in Norwich for quite a while (FXhome has been going for 10 years and Liftshare.com for 15), but what the evening did was give outside endorsement to the cluster. Mike Butcher from Tech Crunch came along and it gave everyone present belief that they were on the right road and that they should be shouting about it. In the days since, I’ve seen emails offering co-working spaces and there’s even a cluster name (Silicon Broads) being bandied about, along with a startup map.
Norwich isn’t the only cluster rising to prominence across Europe – the growth of cloud-based technologies, new agile development methodologies and a focus on entrepreneurship mean they are springing up everywhere. Some people see this as a bad thing – they point to the size of Silicon Valley and wonder how hundreds of disparate European cities can compete or scale. But as Butcher pointed out, the Valley has a 60 year head start and what is needed is to build bridges between the different hubs – after all takes 2 hours to drive from London to Norwich (or Cambridge), the same time to get from one end of Silicon Valley to the other.
What Europe needs to do is to use the nimbleness of having multiple centres to its advantage and turn disparateness into diversity. I’m reminded of the story of the ‘discovery’ of America. At the same time as Christopher Columbus was touting his plans around the courts of Europe, the Chinese Emperor was assembling a great fleet to explore the same area. Given the scale and backing put into the expedition it would have been likely that the first non-native settlers in the present day United States would have been Chinese, not European. However the Emperor died and his plans died with him – there was no alternative power that could take them on. In contrast Columbus, originally Genoese, travelled round Europe for years until he found a backer in the Spanish monarchy. The result? The world we know today.
So it is time that European startups (and political leaders) stopped dreaming of a single super hub that on its own can rival Silicon Valley. It’ll never happen and what we need to do is build bridges between the enormous variety of hubs across Europe. Making everyone aware of what is going on up the road (or further afield) is crucial to driving collaboration, unlocking opportunities and building a successful pan-European tech ecosystem that can break down barriers and silo working and deliver jobs and growth.
As everyone by now has been reminded by their children/mother, there’s less than a month to Christmas, cueing mass panic and a rush to Amazon.
Rather than starting shopping I thought I’d look at the marketing behind Christmas and how it has evolved over the past centuries. From the Christian Church to John Lewis brands have attempted with varying degrees of success to link to a midwinter celebration. Here’s a top four of marketing successes:
1 The Church
Before people start getting upset about the hijacking of the Baby Jesus’ birthday by commercial interests it is worth going back to pagan times. Before the Christian Christmas began there was a major celebration of the midwinter solstice, around the end of December. There’s no record of when Christ was actually born in the Bible, so essentially the church merged the existing pagan festival with Christ’s birth from around the fourth century as part of a move to increase converts and popularity.
2 The Victorians
For popularising other traditions (such as present giving around the day itself, rather than at New Year, and Christmas trees) we have to thank Queen Victoria and her consort Prince Albert, helped by the pen of Charles Dickens. The stereotypical Christmas scene of snow, robins and greenery comes directly from Victorian times, despite the current lack of ‘seasonal’ weather on the day itself. What better way to spread colonial strength than by giving the world an excuse to celebrate?
3 Coca Cola
There’s a widespread belief that Father Christmas’ red and white costume comes directly from Coca Cola’s 1930s ad campaigns. This may not be completely true – his forerunner St Nicholas dressed in red and white bishop’s vestments – but it is certainly something that the soft drinks giant cannily exploits to this day.
4 John Lewis
Over the last twenty years the competition to own the Christmas experience has led to more and more lavish advertising campaigns. Thanks to a heavy dose of hype these ads now attract press coverage on their own, with commentators discussing their relative merits, and now monitoring the social media buzz. Undoubted winner of the past few festive seasons has been John Lewis, which has knocked Marks & Spencer off its perch as the must see Christmas advert. This year it has spent a reported £7m on its animated Hare and Bear campaign, which generated over 14,500 tweets in its first few hours of release.
So, why is it important? Firstly, Christmas has come to dominate the retail landscape, with many chains doing the majority of their business in the months around 25 December. Secondly, spending is still cautious (despite what official figures say about the UK moving out of recession), so competition for every pound spent is fierce. If you can tap into the Christmas spirit not only will you generate seasonal goodwill, but you will also bring in revenue from customers who will remain loyal over the whole year.
This means that while it is easy to sneer at the over-excitement about TV ad campaigns, they are only the successors to previous attempts by brands to ‘own’ Christmas and therefore win over their audiences – whether to sell soft drinks, Victorian values or even Christianity itself. As the investment shows Christmas is far too important to be left to Father Christmas. Myself, I’ll stick to Scrooge………
The world is becoming increasingly urban, with the UN estimating that 70% of the global population will live in cities by 2050. Making sure that cities can cope with the unprecedented pressure on their resources is therefore critical. Hence the idea of smart cities that interconnect infrastructure, services, technology and culture for the benefit of citizens and visitors alike.
Technology is at the centre of this, providing a platform to make lives easier for everyone and vitally, letting them interact in new ways. At a basic level sensors can collect real time data to make day to day activities (from monitoring air quality to finding a parking space) easier, ensuring there is a reliable, predictable and efficient infrastructure. And, more importantly, using this platform brings people together to enable the free exchange of ideas, letting people interact in new ways and create surprising stuff.
From the outside Cambridge has many of the ingredients of a smart city – a highly educated population, strong technology industry, lots of bright ideas and is concentrated in a relatively small area. So, last week’s Cambridge Festival of Ideas debate discussing “Is Cambridge a smart city?” looked like it might go either way.
But peel back the surface and Cambridge’s smartness seems to be currently focused in people’s heads. Making the case for the motion, the best efforts of Alex van Someren of Amadeus Capital and Claire Ruskin of the Cambridge Network seemed to revolve around having some signs that tell you when the next bus is due and a desire by many geeks to patronise the arts.
In contrast, the speakers against Smartness had an array of arguments. Andrew Nairne of Kettle’s Yard pointed to the fact that Cambridge should be a city of potential and imagination and clearly isn’t delivering, while the divides between town and gown, city and countryside highlighted the lack of a common feeling between groups in the population. And that’s before people got onto transport planning, the cost of housing and a lack of joined up vision as impediments to smartness. Unsurprisingly the motion failed, with 82% voting against it.
So what does Cambridge need to become smart? It has the brains, but from what I’ve seen it comes down to not having a single, unified vision that everyone buys into. There are a lot of disparate groups in a small population – nearly 25,000 of the 125,000 residents are students, while you also have the University of Cambridge and its colleges (which own most of the land), those involved in tech businesses, tourists and the general public. And as the limited space available in the city mean that a large number of people can’t afford to live in Cambridge, you have a sizeable commuting population. Cambridge isn’t even a unitary authority, so there isn’t even one public body to represent the city.
All of these groups have different ideas for what would make Cambridge smart, but there isn’t a single agency that joins up all their needs and provides a dynamic vision for the future. It is time for this to change if everyone is to benefit from Cambridge’s success going forward.