For anyone like myself who was around during the dotcom boom, it is hard not to feel that you are suffering from déjà vu. Many of the exotic ideas and concepts that spectacularly flopped at the time have been reborn and are now thriving. Take ecommerce. Clothes retailer Boo.com was one of the biggest disasters of the period, burning through $135 million of venture capital in just 18 months, while online currency beenz aimed to provide a way of collecting virtual money that could be spent at participating merchants.
Offline, we were continuously promised/threatened with smart bins that would scan the barcodes of product packaging as we threw it away, and automatically order more of the same. And goods might arrive from a virtual supermarket, run as a separate business from your local Tesco or Sainsbury’s. You could pay for low value goods and services with a Mondex card instead of cash (though initially only if you lived in the trial town of Swindon). The first Personal Digital Assistants (PDAs) were launched, providing computing power in the palm of your hand. We’d already laughed out of the court the ridiculous concept of electric cars, as typified by the Sinclair C5.
Fast forward to now, and versions of all of these failed ventures are thriving. There are any number of highly graphical, video based clothes retailers, while you can take your pick of online currencies from Bitcoin to Ethereum. We’re still threatened with smart appliances that can re-order groceries (fridges being the latest culprit), but Amazon’s Dash buttons are a neater and simpler way of getting more washing powder delivered that put the consumer in control. And Dash bypasses the supermarket itself, with goods dispatched direct from Amazon. I can pay for small items by tapping my debit card on a card reader – even in my local village shop. More and more cars are hybrids, if not fully electric, while handheld computing power comes from our smartphones.
What has driven this change? First off, the dotcom boom was over 15 years ago, so there’s been a lot of progress in tech. We have faster internet speeds (one of the reasons for Boo’s demise was its graphics were too large for most dial-up modems to download), better battery life for digital devices and vehicles (iPhones excepted), hardware and sensors are much smaller and more powerful, and network technologies such as Bluetooth and ZigBee are omnipresent.
However, at the same time, the real change has been in the general public. Using technology has become part of everyone’s daily lives, and those that are not online are the exception, rather than the rule. It is a classic example of the move from early adopters to the majority, as set out in Geoffrey Moore’s Crossing the Chasm. And it has happened bit by bit, with false starts and cul de sacs on the way.
So what does this mean for marketers? It really brings home the importance of knowing your audience and targeting your product accordingly. Don’t expect raw tech to be instantly adopted by the majority, but build up to it, gain consumer trust (perhaps by embedding your new tech in something that already exists), and prepare to fail first time round. And the other lesson is to look at today’s big failures, and be prepared to resurrect them when the market has changed in the future……
The success of Pokémon GO has been unprecedented. Around the world people of all ages are playing the game, in many cases spending more time on it per day than on Facebook. When the game’s servers go down players feel lost and distraught and there have been countless warnings to people to be careful when hunting Pokémon – the latest about wandering into minefields in Bosnia.
The business impact has been equally huge. Nintendo’s share price has doubled since the launch of the game, while spending on in-app purchases is estimated to be running at $1.6 million every day. Bear in mind that a substantial chunk of that goes to either Apple or Google as owners of the respective iOS and Android app stores and you can see there are a large number of beneficiaries of the craze.
However, you don’t need to be a big business to benefit – one of the beauties of the game is that there are opportunities for organisations of all sizes to market themselves. Here are five to begin with:
1 Exploit your location
Pokéstops, where players collect items, can be any sort of prominent building, including pubs, leisure centres and churches. If your premises have been designated a Pokéstop it means you are likely to have more visitors. This is the perfect opportunity to boost your business – welcome Pokémon hunters into your shop, restaurant or bar with special offers. The same goes for gyms, where Pokémon are trained and fight. Also, be smart about it – if you deploy a Lure, which attracts local Pokémon for half an hour, you are likely to also receive more visitors. Activate these when you are less busy and you can bring in visitors in quiet times as well.
2 Get people walking/cycling
To hatch eggs, players need to walk or cycle for a set distance between 2 and 10km. And you can’t cheat by driving as your speed needs to be below 10 mph (slow for many cyclists). This is the perfect opportunity to get people exercising – towns and organisations such as the National Trust should look at setting up trails that players can follow, while the NHS and the Department for Health can try and incorporate Pokémon GO playing into people getting healthier.
3 Be Pokémon friendly
One of the biggest issues to playing the game in the countryside is the lack of a reliable 3G/4G signal. I’ve been close to catching numerous Pokémon, only for the critters to escape when the signal vanishes. Again, this is an opportunity for businesses – if you offer free wifi, make it available to players and you’ll gain their goodwill and custom. Given that people are focused on their screen when playing set up a safe area, away from traffic, where they can hunt, particularly if you have a Pokéstop in your location.
4 Bear in mind this is just the start
Pokémon GO isn’t the first augmented reality (AR) game, and it certainly won’t be the last. In fact, it isn’t really that complex or advanced in terms of technology. So even if this is just a craze, there will be many more AR apps coming on the market seeking to replicate the game’s success. So anything you set up to cash in on Pokémon GO’s success is likely to be equally applicable to other apps down the line. Be AR ready.
5 Use your brand
For bigger brands, particularly those creating their own apps, there are two lessons to learn from the game’s success. Firstly, it is built on being incredibly simple to use, setting a benchmark for user experience that everyone should aim to follow. Secondly, think about how AR can benefit your brand. If you are a visitor attraction such as a castle or historic ruins, you could bring the past to life with an AR app that shows people what your building looked like in its heyday. For consumer brands or retailers, can you create compelling AR experiences that help engage shoppers – or even guide them to specific locations in your shop to find what they are looking for.
Pokémon GO’s combination of usability, nostalgia and clever technology is driving huge success around the world. Whatever size of business you are, make sure you are exploiting the opportunities it offers to your brand.
With thanks to Lucas Measures for additional ideas for this post!
Sponsoring a successful sportsperson or team should be a no-brainer for brands. Provided they pick one that appeals to their key demographic, they can benefit from their success, use them as a spokesperson, boost their brand and generally engage more deeply with potential and actual customers.
However, if this is true why are many of the biggest companies in the world conspicuous by their absence from sports sponsorship? I may have missed it, but I don’t see the logos of Google, Apple or Facebook on footballer’s shirts, F1 cars or advertising hoardings in athletics stadiums. They simply don’t see it as a good use of their marketing budgets it seems.
Looking deeper, this is part of a retrenchment over the past few years, with commercial sponsors replaced by trade suppliers in many sports. In Formula One, the biggest sponsor of Lewis Hamilton’s Mercedes is, err, Mercedes, while Red Bull is a hybrid owner/sponsor. In cycling a large number of teams are sponsored by bike manufacturers and equipment suppliers and in athletics the likes of Nike and Adidas have a huge profile. In football seven of the 20 Premiership teams were sponsored by online bookmakers over the 2015/6 season, and a further two (including champions Leicester) by their owner’s companies.
So, why are consumer brands less visible when it comes to sports sponsorship – and what can clubs, teams and sportspeople do about it? I think it boils down to four factors:
1. The threat of scandal
There’s always been a chance that your brand’s chosen ambassador will go off the rails and get you publicity for the wrong reasons. But in an age of constant scrutiny the slightest indiscretion is now plastered over the front pages before your brand has the chance to react – look at Tiger Woods as a good example. As testing technology improves, more and more drugs cheats are being caught, even if, as in the case of Lance Armstrong, it is years after their offences actually took place. And that’s before you start on the impact of corruption within governing bodies on public and business perceptions of a sport. Many brands simply don’t want to take the risk of involving themselves in a crisis down the line.
2. Value for money
Sports sponsorship obviously covers a huge range of budgets and opportunities, but generally is becoming more expensive. Global competitions, such as the Premiership and F1 have a worldwide reach, meaning that only the largest brands have the budgets to spend on sponsorship. And to get any value from your sponsorship you need to make sure people know about it, using other marketing activities to make sure that your target audience feels involved and included, and that you maximise the impact through advertising, corporate hospitality and other add-ons.
We’re coming up to Euro 2016 and the Rio Olympics, meaning sports fans will see a procession of sponsor logos over the next couple of months. By the end of it all, will people really remember who sponsored what? Was it Nike or Adidas that provided the match balls for Euro 2016, or had pride of place on the stadium hoardings? I’m sure, if asked, many fans would claim to have seen adverts for brands that weren’t even there, such is the level of advertising saturation we are subjected to thanks to wall-to-wall TV and internet coverage. Demonstrating this, over half of the brands that consumers associated with Euro 2016 in a poll were not even sponsors of the tournament.
4. Other opportunities
Put simply, brands have a growing number of places where they can spend their marketing budgets. From online advertising to supporting good causes, they are all opportunities to boost a brand and engage with audiences. In many cases these channels weren’t there 10 years ago – and equally some sports have been hit by what you can and can’t advertise. One of the reasons for the growth of F1 for example was the enormous sponsorship from tobacco companies – they had nowhere else they could advertise in most countries, so could focus their budgets on one sport. F1 is in many ways still coping with the hangover, with high costs and a cultural desire to outspend rivals – but not the budgets to support it.
Digital channels in particular make it much easier to measure the results of marketing in terms of click throughs, visits and sales, whereas measuring the impact of sports sponsorship can be more difficult.
So, is sports sponsorship doomed? Not completely, not while we are still able to be moved by amazing feats of sporting prowess on the field or track. However, brands need to be more careful on what they spend their money on, and activate sponsorship more cleverly if they are to stand out from the crowd. And teams, players and governing bodies need to focus on getting their own houses in order, removing cheats and corruption and remember that the reason that brands sponsor them is to reach the fans – put them first and you’ll build loyalty that will deliver return on marketing investment, whatever sport you are in.
Amid all the excitement and hype of last week’s Consumer Electronics Show (CES) – products demonstrated included a games console for dogs and a smart belt (unfortunately called the Welt) that monitors your waistline – there are some big trends that will potentially affect us all.
While last year was all about wearables, CES 2016 was focused on travel and transport. In fact, there was more noise about cars than at the once dominant Detroit Motor show held a week later. GM announced a $500m investment in Lyft, as well as launching its latest Bolt electric car. BMW showed off a concept car controlled by gestures (taking giving the finger to another motorist to a whole new level), while Ford talked about its progress in self-driving cars. There was even a hoverboard or two – though not something that Marty McFly would recognise from Back to the Future.
What’s interesting is that it shows that the traditional car makers are waking up and fighting back hard against tech companies in the battle for future motoring. As cars essentially transform into computers on wheels, manufacturers risk becoming relegated to providers of hardware (the car chassis), with all the value and ongoing profit going to the tech firms providing the software that makes them intelligent, self-driving, more efficient or more comfortable spaces. Allied to this, there is a lot of talk about the Uber effect, with younger consumers turning away from car ownership and instead just hailing one when they need it or renting on an ad-hoc basis.
So car manufacturers are worried – fewer people buying their products and margins squeezed as the profits go elsewhere. Personally, I don’t think it will be as bad as some naysayers predict – younger people have been hard hit by the recession, so don’t necessarily have the money to buy and run a car. And owning your own vehicle isn’t absolutely necessarily if you are one of the 54% of the world’s population that lives in a city. For those living in the countryside without Uber or buses, the picture is very different.
But what is interesting is how the car giants are changing their behaviour. They have realised that they are up against a smaller, more agile foe – but one that has access to new ideas, brands well known for innovation, and no preconceptions about the business. They have to market themselves better, embrace technology and work together to convince consumers that traditional car makers have what it takes to meet their future needs. Hence investments in start-ups such as Lyft, car clubs and the joint purchase of mapping firm Here by a consortium of VW/Audi, BMW and Daimler.
But both sides face significant marketing obstacles. Aside from a few supercar manufacturers, the majority of car companies are not sexy – and VW’s issues with faked emissions tests back up the view that they can’t be trusted. Cars are expensive to buy, depreciate quickly and require ongoing maintenance and fuel. I’m not saying that tech companies are angels, but the majority of people pay nothing to use Google’s services, even if that means that they themselves become the product. So tech companies need to convince consumers that they combine style and innovation with security and safety, and that they won’t have to reboot their self-driving car before driving away in the morning. Essentially the incumbent needs to show a bit of excitement, while the new player needs to demonstrate a bit of gravitas – a classic marketing dilemma.
As the battle moves from the phony war to full on combat, and new companies (such as Apple) join the market, then expect a much greater focus on marketing from both sides – as each one aims to convince us of their benefits in the brave new motoring world. My money is on whoever develops a proper hoverboard first…………….