The industrial revolution mechanised previously craft-based activities, and since then machines have become more and more involved in creating the world around us. But until a few years ago, this mechanisation didn’t affect those of us in the creative industries – after all, our imagination and skills couldn’t be replicated by a machine.
The internet has changed all of that. In some cases it has allowed computers to take on tasks that were previously only done by humans, by applying artificial intelligence and machine learning and breaking them into discrete tasks. You can now get computer-written journalism, which use algorithms to bring together data and organise it into a rudimentary article. In the US, stories about minor earthquake reports are now routinely created and published, based on information supplied by the US Geological Survey. It isn’t much of a stretch to see short sports reports written based on player data and profiles, avoiding the need to send a reporter out to lower league matches.
However the biggest threat or opportunity to the creative industries is that the internet and digital technology has broken down the barriers around previously specialist occupations. Take photography. In the past only professional photographers could afford the equipment needed to create (and manually develop) arresting images. Now, similar levels of performance are available in a smartphone, and PhotoShop can do the rest. News stories frequently use amateur shots from bystanders who happened to be in the right place at the right time, adding extra depth to articles. Design and PR are both equally affected. Anyone can set up as a web designer or copywriter, without necessarily needing to undergo lengthy training.
In many ways this is a good thing – the internet has democratised creative industries that were previously off limits to most of us and enables more people to share their thoughts, feelings and ideas. It uncovers real talents who never previously would have been spotted, whether that is musicians on YouTube or specialist bloggers with a passion for their subject. But what it also does is amateurise previously professional occupations. How can a portrait photographer compete on cost with a bloke and an iPhone? Again, a copywriter on eLance charges much less than a professional. And the overall effect is that there is more stuff out there (words, pictures, videos of cute cats), but quality is far more hit or miss.
Before people start complaining, as someone that makes a living through PR and copywriting I obviously do have a vested interest here. But that doesn’t mean I don’t welcome more competition and the chance for more people to be creative. Far from it. However businesses need to understand that you get what you pay for – in the same way that fixing your car yourself is inherently riskier than going to a garage (unless you are a mechanic), working with amateurs opens you up to potential issues. Do they have insurance if something goes wrong, do they understand copyright, are they using legal images on your new website? There are 101 questions that you need to be sure of, before handing over your money. And it can be pretty obvious when a website has been put together by the managing director’s teenage son or daughter. Businesses therefore need to strike a balance between democratisation and working with amateurs if they are to stand out in an increasingly crowded global market.
Since the rise of the internet, there have been plenty of people predicting the steady decline of mainstream journalism. As people consume more content online they are unwilling to pay either to buy newspapers or to access firewalled content, except for specialist titles such as the Financial Times or The Economist. The result? A huge drop in the number of journalists employed in the newspaper industry – in the US numbers have dropped from over 55,000 in 1990 to under 40,000 today.
However, we are actually consuming as much, if not more, news than ever before. Much of this is in different forms, such as via social media or through news videos. The latest Pew Research Centre State of the News Media report found that a third of Americans now watch news videos online, rising to half in the 18-29 demographic. There’s also been an explosion in the number of digital news firms, creating 5,000 US jobs.
What’s interesting is that these companies are evolving fast. Rather than simply competing with traditional news sources by rehashing stories (or putting out controversial click bait headlines in the case of sites like BuzzFeed), they are investing in original content. Star journalists are being poached from top newspapers, lured by the opportunity to write longer articles without daily deadlines and with greater editorial freedom. Part of this growth is financial – launching a credible digital news site is relatively cheap, around $5m in the US for example.
And the Pew report finds that consumers are getting more involved in the news. 7% of Americans have posted their own news video to a social network or established media outlet and half of social media users share or comment on articles.
The difficulty for traditional publications is two fold – they are still running a print newspaper which has huge fixed costs, while consumers are much less loyal. They’ll click on a link on social media, irrespective of (or not even knowing) its source and then, once they’ve read it, leave the site without necessarily checking out other stories. In the UK the picture is skewed by the credibility and power of the BBC, which has successfully embraced the digital world, helped by its guaranteed funding through the licence fee.
So, what can newspapers do to evolve and change? From what I can see they have five options:
1 Put up a paywall
Given that people spend money on newspapers, why shouldn’t they pay for online content? Hence the rise in paywalls. However with a fickle readership, getting people to commit requires content that they truly can’t get anywhere else, which in turn necessitates investment in journalism, or extras such as Premiership goals in the case of The Sun. It works when the content is original enough or the subscription deal is compelling. On the downside paywalled content is a lot more difficult to share socially, so the overall reach of the title drops as well.
2 Make a go of advertising
Sounds easy – write good stories and advertising will flood in, both in print and online. In theory yes, but we’re back to the fickle readership and the increased competition for advertising pounds. Only those publications that really differentiate themselves (such as the Daily Mail and The Guardian) have grown their online audience enough to deliver a strong advertising revenue. In the print world, the Evening Standard has been able to transition from a paid for to free model, but it has been helped by having an owner with deep pockets.
3 Find a sugar daddy
With newspapers suddenly cheap, there’s been a rush of billionaires investing in them, either as a vanity project, something more sinister or simply because they can turn them around. Jeff Bezos, founder of Amazon, bought the Washington Post, the Boston Globe is now owned by Liverpool FC owner John Henry and Warren Buffett has purchased a whole stable of titles. Even the aforementioned Evening Standard is owned by billionaire Evgeny Lebedev.
4 Become a brand
If you can build a strong reputation for content, you may be able to transform yourself into a global brand. That’s the aim of The Guardian, which has made its name around the world by breaking stories such as Edward Snowden’s revelations. At a more local level it explains the rush of local newspaper groups into local TV, enabling them to share resources and cross-promote.
5 Get someone to write it for you – for nothing
Blog-based sites such as Mashable and the Huffington Post started out without much in the way of original content, but built themselves on contributed blogs. They’ve now expanded to create many more of their own stories, but the model – attracting interesting, informed bloggers looking for the oxygen of publicity – still works equally well on other sites. Both sides benefit, so provided the content is good it adds to a site’s appeal.
Most newspapers have looked at all five of these ideas (some all at the same time), but with varying degrees of success. However, as the Pew report shows, journalism can flourish in the digital age – it just may not be appearing in traditional media outlets.
How do you persuade people to buy your product or service, particularly when there is an increasing number of demands on their time and wallets?
I’ve always been fascinated about how an understanding of human psychology can help marketers to change people’s behaviour. Whether it is nudging people to choose the ‘right’ option or appealing to the herd mind, there is a lot that marketers can learn from the social sciences.
One theorem that can help improve marketing is Maslow’s hierarchy of needs. Originally proposed by Abraham Maslow in 1943 it essentially ranks the varying needs of humans, from the basic to the most complex. The key point is that it is only when one level of requirements are met will humans then move onto the next one.
So at the bottom are physiological needs – breathing, food, water, sleep, excretion. Without these humans simply cannot function. So, if you are selling basic products, appeal to this need, but if what you offer is more complex or higher value, look further up the hierarchy.
Next is safety (security of body, employment, family, resources, health, property). We’ve all seen marketing/advertising campaigns that play to these needs, normally by warning of the dangers that a particular product or service guards against. Insurance is the perfect example.
The third layer of the hierarchy is love and belonging, covering friendship, family and sexual intimacy. This is where sex sells, and also products that deliver a sense of being part of a group. Remember the scene every week in Cheers, where Norm comes in and everyone greets him by name? That’s key to this layer. However too many brands attempt to generate a sense of belonging, but make it too corporate and intrusive, such as Starbucks’ attempt to call customers by their first name when they were buying their latte.
Above belonging is the esteem level (confidence, self-esteem, respect of others, achievement). All humans have a need to feel respected, and clever marketers exploit this by offering products that (they claim) will increase your confidence and earn the esteem of others. Buy our car/mobile phone/bank account and your world will be transformed.
So, what’s at the top of the pyramid? All the previous levels were seen by Maslow as deficiency needs and have to be not just met, but mastered, before humans can move onto self-actualisation. This is much more complex and varies from person to person, but is essentially about achieving your full potential. To do this they need accept themselves, happy in their judgement and have an efficient perception of reality.
On the face of it self-actualisers should be immune to marketing, as they can see through attempts to manipulate their thoughts or feelings. However those on the path to self-actualisation can be targeted with images that show successful people and intimate that they can only be achieved by buying particular products. Think American Express Black credit cards or most celebrity adverts – drink Nespresso and you can be George Clooney!
I’m not saying that the hierarchy of needs is the sole way of planning marketing campaigns or boosting sales. But understanding which level your product best appeals to is a good way of focusing your efforts and going beyond features to look at what the customer is looking for. And that can only lead to better targeted products that consumers actually want, after all.
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.
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?).
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………