Revolutionary Measures

The end of the creative professions?

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.

Best Wedding Photography Picture about Profess...

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.

Enhanced by Zemanta

April 16, 2014 Posted by | Creative, Marketing, PR | , , , , , , , , | 2 Comments

Stop the presses?

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.

2007 United Kingdom floods

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.

Enhanced by Zemanta

April 2, 2014 Posted by | Creative, Marketing | , , , , , , , , , , , , , , | Leave a comment

Psychology and marketing – appealing to consumer needs

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?

English: Maslow's hierarchy of needs. Resized,...

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.

Enhanced by Zemanta

March 26, 2014 Posted by | Creative, Marketing | , , , , , , , , , | Leave a comment

Beacons – the next big thing or a blinking nuisance?

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.

nerd candy. some iBeacons have arrived

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 ventureWeve, 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.

Enhanced by Zemanta

March 5, 2014 Posted by | Creative, Marketing | , , , , , , , , , , , , , , , , , | Leave a comment

Generating a network effect – why WhatsApp is worth $19 billion

As I’ve said before, the technical side of creating a new social network is relatively easy – and nowadays with cloud computing you have fast, cost-effective access to the resources you need to scale it in line with demand.

Diagram showing the network effect in a few si...

But how do you create the demand – for your social network or any other service in today’s complex and fast-moving world? Essentially you rely on the network effect – the fact that the more people use a service, the more valuable it becomes to each user. A classic example is the telephone. If one person is connected, it is worthless, but add more users and the positive effects increase dramatically – you actually have someone to call. It can also drive lock-in – if 80% of businesses use Microsoft Office there are compatibility issues for those that don’t, but who want to share documents with them.

Social networks are a classic example of the network effect in action – the bigger Facebook gets, the more people are on it who you know and supposedly want to communicate with. WhatsApp is another. It has built a base of 450 million users – 70% of whom are active on a daily basis. And as it allows free texts to be sent between users (and doesn’t cost to join for the first year), why wouldn’t you sign up to message your friends? No wonder it is predicted to hit the billion user mark in the relatively near future.

So how do you create the network effect and catapult your startup into the $19 billion bracket? There are six things I think are necessary

1              Word of Mouth
Obviously people have to know about your network or service, but traditional PR and marketing can only take you so far. What you need is people to recommend it to their friends, so start by researching and targeting the nodes of networks (i.e. those with lots of connections). If they join then their followers will as well. Approach these people and maybe even make them brand ambassadors to get them onside.

2              It has to be different
In open markets there is no point trying to simply copy what is already out there – if people are already using a service, the alternative has to be different or substantially better, if they are going to join. What issues/problems do people have that you can solve? In the case of WhatsApp it is removing the cost of sending text messages, so there is a clear advantage of moving to the service.

3              Make it easy to use (and free)
An obvious one, but if people log on and have to navigate through a maze of functions when they join, they are going to be put off. From registration to ongoing use, make things simple for people. And you have to understand and appeal to a mainstream audience – test it out on real people, rather than early adopters and fellow geeks. An intuitive user experience and comprehensive online support, including video and how to guides are a must if you are to grow. Put it where people will use it – on their mobile devices as well as PCs. And the basic package has to be free if you want to recruit major numbers of people.

4              Make it compelling
Just getting people to join is the easy part – network effect relies on them actively using the service. LinkedIn had this problem a few years back. Everyone had joined, but no-one was logging on, unless they were actively looking for a job. It changed this by adding in compelling content that aims to drive you back to the site – from the thoughts of business leaders to seeing what your peers are doing. You need to create reasons that drive people back to your site on a daily or even more frequent basis if you are going to build a solid user base. 

5              Think global from the start
When it comes to tech and the web, you need to think global. Does your proposition work in Delhi as well as Derby? The wider the target market, the bigger the potential user base, provided you make it appealing to a worldwide audience. Even if your site is initially just in English, the user experience has to be understandable by non-native speakers. As things grow you should quickly add other languages, dependent on demand.

6              Keep evolving
Nothing stands still – since its acquisition, CEO Jan Koum has announced that WhatsApp will offer voice calls on its platform, putting it in direct competition with Skype and traditional telecoms companies. You need to add new services and functions to both keep momentum going, ensure users return regularly and to recruit new ones.

The success of WhatsApp demonstrates it is less about the technology, and more about generating network effect if you want to attract a lucrative exit. Is it worth $19 billion? If it can continue its growth, introduce new paying services and bolster Facebook’s own platform it might just be.

Enhanced by Zemanta

February 26, 2014 Posted by | Marketing, PR, Social Media, Startup | , , , , , , , , , | Leave a comment

Lego – the marketing

English: A 2x4 red plastic brick like a Lego b...

Everyone loves Lego – except of course when you tread on a brick with your bare feet or cannot see the living room floor for brightly coloured ‘creations’. So it is a bit of a surprise that we’re only just seeing the first full-length Lego movie (imaginatively titled The Lego Movie) hitting UK cinemas now. We’ve already had short Lego films, pastiches of other films (my personal favourite is the Camelot song from Monty Python’s Quest for the Holy Grail) and innumerable video games.

As a parent of Lego-age children I’m sure I’ll be visiting the cinema to see it this half term, but what has really impressed me is the marketing around the film. As well as the traditional online, cinema and print ads, Warner Brothers have looked further afield. For example, the whole of one ad break in Dancing on Ice was made up of traditional adverts, re-shot entirely using Lego characters and bricks. From BT to Travelodge, it didn’t really matter how good the original ads were – the Lego ones were a whole lot better.

It didn’t end there – the Culture Show ran a special programme on the impact of Lego on architecture and even David Beckham got in on the act, claiming that building with the stuff calms him down and that he’d just finished a 1,000 brick model of Tower Bridge. VIP tickets for David and his kids must be in the post. At one point I even expected a Lego character to turn up as Top Gear’s Star in a Reasonably Priced Car (or the Stig to remove his helmet to reveal a yellow, brick-like face.)

And this has been backed up by a very active social media strategy, dating back a number of months. This sends you to a website where you can create your own mini figure which you can turn into a poster, icon or wallpaper.

Of course, Lego the Movie (and indeed the overall brand) has a big advantage over a lot of its competitors. It is intrinsically linked to pretty much everyone’s childhoods, and the urge to create is something that most of us don’t grow out of. However the company has used its strengths and extended itself very naturally to the film and online spaces (witness its CUUSOO site where the community votes on potential new models). Consequently people have flocked to the movie and a sequel is already in the works.

We can’t all have the brand power of Lego, but brand marketers and startups alike can learn a lot from how the company operates. It is open, friendly and inclusive, great at customer service and most importantly, doesn’t rest on its laurels. There is always new stuff coming out – from electronics-based Mindstorms to more traditional models. Children and adults love the Lego experience and have an emotional connection with the brand that grows over time. You don’t really grow out of it. Look at your own company – how can you build your own little bit of Lego into the DNA? Minus the painful standing on a brick, obviously.

Enhanced by Zemanta

February 12, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , | Leave a comment

10 changes that Facebook has made in ten years

This month Facebook celebrates its tenth birthday, having come a long way from Mark Zuckerberg’s Harvard dorm room in 2004. Hitting 1.23 billion active users and 2013 revenues of $7.87bn points to an astonishing growth in just a decade – though several researchers have tried to spoil the party by pointing out that teenagers have been deserting the social network in favour of cooler locations such as WhatsApp and SnapChat. On the flipside there’s been an 80% growth in those over 55 joining up – and from an advertiser’s point of view, which is the demographic with most money?

Facebook logo Español: Logotipo de Facebook Fr...

As the parent of a ten year old, albeit one that hasn’t delivered any revenues yet, it is amazing to see the impact that the social network has brought, not just online, but to the world around us. This is particularly true when it comes to marketing – ten years ago digital marketing essentially meant creating a website, SEO or sending out emails, rather than the relatively sophisticated profiling that is now possible through Facebook.

So here’s my top ten things that Facebook has changed:

1              Our language has evolved
Ten years ago we liked things. Now we Like them, and friend and unfriend people in the real world, as well as online. Poking publically is still frowned upon though. The language of Facebook has added and amended written and spoken English, and made it into the Oxford English Dictionary.

2              Marketers have traded control for access
If you told a marketer ten years ago that they’d move from investing their budget in their own websites to fitting their content inside the constraints of a presence on a third party network they’d have laughed at you. But essentially that is what Facebook has done – consumer marketers feel they have to follow their target audiences onto the site and interact with them, if they are to drive engagement.

3              Consumers are now in charge
The relationship between companies and consumers used to be one way and top down. The very word consumer conjured up a vision of passive purchasers lapping up whatever was marketed to them without complaint. Social networks have turned this on its head. Got a complaint? Disagree with what a company is doing? Facebook (and, of course, Twitter) provides you with a megaphone for your comments and can reach a global audience within seconds. Brands no longer have total control – as my ex-colleagues Steve Earl and Stephen Waddington have pointed out we’re now in an era of #brandvandals, that have the means and inclination to undermine corporate reputations overnight.

4              Everything happens faster
This isn’t just because I’m old, but we’ve moved from 24 hour rolling news to second by second and minute by minute activity. Move away from your computer for a tea break and you’ll be behind the curve and out of the loop. The constant need to update your status, post what you are doing and react to other people doing the same does give immediate insight, but is it at the expense of longer term perspective?

5              You cast a longer digital shadow
Ten years ago there wouldn’t be much information available online on most people. Now people live on Facebook, sharing their most intimate moments without a second thought. But unlike the offline world, this information doesn’t disappear but remains available forever. So be careful what you post as a teenager, as it may come back to haunt you when you’re Prime Minister

6              News has changed
How we consume news – and how it is collected and disseminated – has evolved beyond all recognition. Facebook profiles are the first place that journalists look for information or reaction to events. Much of our news is shared or recommended by friends rather than genuinely found through our own efforts. Consequently bite-size stories have risen up the agenda, along with a focus on cute kittens and addictive but unprovable gossip.


7              Distance is less important
It used to be that your closest friends were those you saw every day, even if the main thing you had in common was location. But now you can hang out with people you share interests with, wherever they are scattered across the globe. For many people the main focus of their social lives is Facebook, not the telephone or face to face communication any more.

8              Celebrity hasn’t gone away
Social media has allowed celebrities, from the Queen to Justin Bieber, to share their lives and build a direct relationship with an audience, unconstrained by the press. But this comes as a price – you need to actually talk to your fans and engage, rather than shutting yourself away, surrounded by minders.

9              We’re more open
Perhaps too open judging by what many people post. But the stereotype of shy and retiring, emotionally awkward Britons has been completely destroyed by the advent of Facebook. There’s no limit to what people think is shareable or that they believe their friends will find interesting………….

10           We’re beginning to grow up
Our attitude to how our private data is mined and used is changing. When Facebook began, few were bothered about what happened to their personal information – but that has changed as we’ve grown savvier about what it is worth. The next decade will see a fascinating struggle between Facebook (and marketers) and users, as each side tries to shift the needle on privacy.

 

Enhanced by Zemanta

February 5, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , | Leave a comment

Paranoid Android

This is not a good time for the paranoid to be on the internet. In the wake of the first set of revelations from Edward Snowden, more is emerging about the extent of online eavesdropping by the security services on both sides of the Atlantic. According to Snowden British intelligence agency GCHQ showed off the ability to monitor YouTube video views, Facebook ‘likes’ and Blogger visits in real-time to its US colleagues back in 2012. The programme, named Squeaky Dolphin, even had its own logo (though looking at the design, I don’t think the spies should give up their day jobs quite yet).

Angry Birds

Even worse, spooks have been accessing smartphone data while people play Angry Birds, enabling them to get hold of user’s personal information. Presumably the game was picked due to its global popularity, rather than being a cunning ruse by GCHQ and the NSA to enable staffs to play it during work time.

And in an unrelated story, a security company has found an internet-enabled fridge that has been hacked and is now sending spam. This is particularly worrying given the rise of the Internet of Things, with more and more devices and appliances around us connected to the web. Essentially each of these is a small, but powerful computer, often without the same level of security and protection than you see on a PC or tablet. Being able to hijack a fridge is one thing, but as the Internet of Things spreads, more sinister opportunities arise – remotely controlling smart cars or switching on and off hundreds of air conditioners to bring down a power grid are all possibilities.

Taking these stories together leads to two concerns in my mind. Firstly, internet privacy. I think most people understand the need to collect information on identified threats to public safety, provided due legal process has been followed. What Snowden seems to have uncovered is technological spying that has gone mad – exactly what you’d expect if you put a large bunch of very intelligent geeks in a room, give them all the resources they need and exonerate them from any qualms of conscience by saying it is in the national interest. So what happens to information that is found online that is not linked to terrorism but minor, non-criminal misdemeanours? GPS data that shows an MP was with his mistress when he should have been elsewhere or evidence of unsavoury (but not illegal) internet activities for example. The nature of technology means this information is unlikely to disappear, but will sit on servers somewhere, with no guarantee that it won’t be pulled out in the future.

Secondly, security concerns have the ability to derail the Internet of Things. As Google’s recent purchase of Nest shows, market momentum is increasing. But if people add the worry of security issues to privacy concerns they are less likely to embrace the opportunities that the Internet of Things offers when it comes to increased efficiency and energy saving. After all, I don’t want GCHQ to know what’s in my fridge – or burglars to know when I’m away on holiday.

There’s been a lot of talk from politicians about reining in the security services and that needs to be formalised to reassure the law-abiding – instead of enabling spying, the tech industry should be focusing its intelligence on improving the actual security of the devices and applications that control our lives.

 

Enhanced by Zemanta

January 29, 2014 Posted by | Marketing, Social Media, Uncategorized | , , , , , , , , , , , | Leave a comment

Thinking, Fast and Slow

A Cadbury Dairy Milk bar in 2006.

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?). 

December 18, 2013 Posted by | Creative, Marketing | , , , , , , , | Leave a comment

The (marketing) meaning of Christmas

christmas tree

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………

 

November 27, 2013 Posted by | Creative, Marketing | , , , , , , , , , | Leave a comment

Follow

Get every new post delivered to your Inbox.

Join 60 other followers