Revolutionary Measures

Google, tax and PR – do no evil?

On the PR side it has been a busy couple of weeks for Google. Firstly, it casually announced at Davos that it had agreed to pay £130m for ten years of UK corporate taxes, although obviously without any admission of guilt. Cue a storm of protest that this was nowhere near enough for a business that reputedly made £7.2 billion of profits over that period, essentially meaning it paid 3% corporation tax. Much of the vitriol came from other media companies, particularly newspapers, that have seen their own advertising revenues decimated by the search advertising giant.

Google Quick Search Box

Then earlier this week Alphabet, Google’s holding company, became the world’s most valuable company by market capitalisation, helped by strong financial results and worries about previous number one Apple’s future growth prospects.

Given the closeness of these two events, it would be easy to draw the conclusion that ethically debatable behaviour leads directly to outstanding corporate success. But has it actually made any difference to Google’s reputation in the UK? I’d argue that overall it hasn’t affected its business in any way, for three main reasons:

1.The public doesn’t buy from Google
For the majority of people Google is a utility – providing them with the ability to browse or search the internet, watch videos, manage emails and documents or run their mobile phones, without charging them a penny directly. What people don’t understand is that the price of this free stuff is that they become the product – Google has built its very lucrative business on selling this data on our activities and preferences to advertisers. In contrast Starbucks, another perceived tax avoider, sells physical products direct to the public, giving consumers a vested interest in seeing the right levels of tax paid out.

2.Google does no evil
It will probably surprise a lot of people that Google is as enormous as it actually is. From its beginnings it has cultivated a laid-back, anti-establishment brand, epitomised by its corporate slogan “Do no evil” and heavy investment in moonshot projects such as self-driving cars and research into cures for cancer. Despite its growth, it is still seen as a Silicon Valley upstart successfully battling the likes of Microsoft (search, browsers, productivity applications, operating systems) and Apple (with Android).

3.Is there an alternative?
Obviously you can use different search/email/operating system providers, including those that make it clear that they won’t either track your online behaviour or use it to target adverts based on your browsing. But how many people actually make the effort to go out and switch, particularly when Google makes it so easy to just carry on using its services. The figures speak for themselves – it has nearly 86% of the UK search market, which hasn’t changed much since the first mention of its tax affairs.

So, while as a PR person I agree that it has handled the whole tax situation badly by trying to claim that it is doing the right thing when its activities are ethically dubious at best, I don’t think it will have a major impact on the corporate brand. This is echoed by an (admittedly small) poll in PR Week, where 51% of PR professionals said it would leave its reputation unchanged – and 11% thought the tax settlement would improve the brand.

However, where it may cause issues, is by attracting further attention from regulators at the European Union, which have previously shown that they have more teeth when dealing with tech giants than national governments. Time will tell, but with the media already setting its sights on Facebook for potential even larger tax avoidance, I think Google will feel that the £130 million it spent is worth every penny.

February 3, 2016 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , , , | Leave a comment

CES goes mobile – the lessons for marketers

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.

English: Jari-Matti Latvala, winner of the Nes...

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…………….

January 13, 2016 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , , | Leave a comment

The death of the pub quiz?

A Trivial Pursuit playing piece, with all six ...

500 years ago, during the Renaissance, it was possible for one person to know pretty much everything across a wide range of subjects. Leonardo da Vinci, for example, was a painter, anatomist, sculptor and inventor, designing objects as diverse as an early helicopter and an adding machine. A little later polymaths such as Isaac Newton were leaders in fields as different as mathematics, physics and optics, while still believing in alchemy and experimenting to try and turn lead into gold.

In the late 20th century the place of the Renaissance man shifted again, moving from laboratory and academia to the hallowed pub quiz. This was the foremost place for polymaths to show off their knowledge, particularly if their family and friends refused to play Trivial Pursuit with them anymore.

But, in the same way that the days of a da Vinci or Newton are gone, I fear that time has been called on the pub quiz. And it is all down to technology and the way it is shaping how we learn and retain facts/useless information. Nowadays we can access all the knowledge in the world instantly with a smartphone and Google (except in my village, which only has 2G coverage). I remember as a ten year old memorising the capital cities of Europe (including mastering the trick question of what the capital of the Netherlands was), but am now sorrowfully realising that I may have been wasting my time.

Shared experiences and the herd mind
This means that rather than priding themselves on learning and retaining information, my children are much more focused on how to find it in a hurry. While this is good in a way – there’s no way you can know everything, so why try? – it is also disheartening in others. We relate to other people through shared experiences – whether that is knowledge of the same events, watching the same TV programmes or attending sports matches. And if you erode that – such as through the explosion in viewing choice, the plethora of pay-TV options and rising ticket prices at sports events, you take away much of how we relate to others.

Why is that important? Essentially because mankind is a herd animal, and a lot of our choices are not based on being rational, but fitting in with those around us. So take away our shared offline experiences and we won’t know how to behave, meaning we will start trying to find new herds to potentially join online. At its most extreme this can lead to the bandwagon jumping you see on Twitter, when everyone tweets/retweets on a particular topic or trend, without thinking, or at its worst joining radical organisations that provide a sense of belonging, however misplaced.

It also provides opportunities for marketers – good and bad. Marketers can position their brands as essential to the lifestyle and experiences we want to share, but this opens them up to charges of psychological manipulation if they are simply using PR and are not genuinely delivering what they promise. It is a balancing act – consumers are both more susceptible and more cynical at the same time – and are also apt to forget your brand in the wider noise if you don’t keep communicating with them.

So, while pub quizzes will never be the same, the need for shared experiences remains: as humans we should remember this and ensure that we find them in the physical as well as the online world. And that means making sure we still retain enough useless trivia to interact with those around us – and of course to dominate at Trivial Pursuit.

January 6, 2016 Posted by | Creative, Marketing, PR | , , , , , , , , | 2 Comments

Write more, type less

According to research quoted by Richard Branson, half of 13-19 year olds have never written a thank you letter, and just 10% own a pen. And before we adults start moaning about teenagers, texting and social media replacing good old fashioned ink and paper, think back to the last time you hand wrote something, other than your name on a Christmas card.

Image of a modern fountain pen writing in curs...

As Branson points out, the act of writing long hand holds more meaning than an email or electronic message. You have to put greater physical effort into it, and you also need to think about it more, plan it and take time to actually write the sentences, particularly if your handwriting is as atrocious as mine. He points out that poems and love letters, no matter how scribbled, are the perfect way to crystallise feelings and emotions directly, rather than through the medium of a keyboard and screen. You can’t cut and paste sections of text, move things round or delete words without leaving a mess. Obviously this does involve more time, but that isn’t always a bad thing – particularly given the breakneck speed of modern life.

Writing shouldn’t just be about letters either. I find that physically taking notes is the best way of ensuring I actually remember what I’m hearing, particularly if I then type it out again later on. And planning in longhand is the perfect way of collecting your thoughts before drafting a press release or document and avoids starting with the soul destroying white space of an empty Word document.

The scary thing is that we are becoming physically less able and practiced at holding a pen. As a student I wrote for three hours straight in exams, without any ill effects, yet now I struggle to manage more than a single holiday postcard without getting cramp. Children today increasingly don’t need to write, with much of their coursework completed online, so no wonder that they don’t need to own a pen.

What we need is to embrace the best of both worlds – you need the skills to type quickly and organise your thoughts using modern technology, but also to take a step back, breathe and think about what you are trying to say. The pen is perfect for this – we should all remember to uses digits in the offline world, as well as the digital one. So, if you don’t have one, put a pen and notebook on your Christmas list and make a New Year’s Resolution to write more and type less.

This is my last blog of 2015, so thanks to everyone that has read, commented and shared my posts. Have a very Merry Christmas and a Happy New Year!

December 16, 2015 Posted by | Creative, Marketing, Uncategorized | , , , , , , , , , , | Leave a comment

Being a fox, not a hedgehog

In a famous essay based on a fragment of Greek poetry, the philosopher Isaiah Berlin divided writers into two groups – hedgehogs (who essentially know one thing in depth) and foxes (who know many things and see the world through a variety of experiences). This classification can be equally applied to all of us.

A Red Fox on an Evergreen, Colorado's porch.

As human knowledge has grown, and professions have become more specialised, people have been encouraged to be more hedgehog, and less fox. After all, the time, dedication and skills needed to become a brain surgeon, mean it is unlikely that the same person could train as a rocket scientist. So, since the Renaissance, where the likes of Leonardo da Vinci were equally adept with science and the arts, we have been pushed down the path of specialising and knowing one thing in depth.

This has obvious advantages – no-one wants to be operated on by a brain surgeon who only did half their training, but it also very limiting. As hedgehogs, people tend to view the world through the prism of their own experiences. Hence you might find that someone in the police force is by nature suspicious and on their guard, or a primary school teacher talks down to adults, treating them like children. These are obviously extreme cases, but we’ve all met someone and been able to correctly guess their profession due to what they say and how they say it.

More importantly, at a time when pretty much all the knowledge in the world is on the internet, and digital technology is changing how we work, live and play, being a hedgehog is also out of step with today’s reality. Sticking to what you know, rather than looking to acquire new skills limits everyone’s potential – it is no accident that the most enthusiastic and fearless users of new technology are children, who are naturally foxes as they learn.

However, becoming more fox-like is not easy. Like anything new, it involves giving up long-held, cherished beliefs and taking a risk. It can also be more difficult than it looks. The internet overloads our hedgehog brains with too much information, making it hard to see the wood for the trees. For example, when Spotify has tens of thousands of tracks how do we choose what to listen to? The safest bet is just to stream what we know about already, confirming our hedgehog tastes. Artificial intelligence that learns what we like automatically suggests more of the same, rather than throwing in a curve ball – “you like Puccini, have you tried Taylor Swift?”

So, how do we encourage our foxiness, but without losing the focus that a hedgehog brings? I think it comes down to three things:

1. Communication
It is easy to sit in our hedgehog silos, blaming other groups when things go wrong. Companies are full of inter-departmental feuds, with sales complaining about marketing who criticise engineering who grumble about accounts, until no-one is happy. Much better to actually sit down and listen to what everyone does, why they do it, and then try and fit it all together for the good of the wider organisation. The same principle applies in relationships outside work – understand the mindsets of those around you if you want to be able to talk their language.

2. Turn the internet on its head
In the same way that the internet encourages silos, it also provides almost limitless scope for new experiences. Rather than just extending what we do offline onto the web, use it to find new things to do, new skills to learn and new people to talk to. Type a random idea into Google and see what comes back (though be careful what you wish for), take up a new hobby or subscribe to the magazine used in the Missing Words round of Have I Got News For You?, for example. Obviously make sure it is legal, and while you may hate it, at least you’ll have had a new experience.

3. Don’t smother fox learning
As I’ve said, children are naturally foxes in how they pick up experiences from all around them. But at a certain age this stops, and they are focused solely on what they should be learning, at the expense of letting their imaginations wander. I’m not advocating dismantling the education system completely, but schools and universities should make sure they are teaching a balanced curriculum, and ensuring that students remain curious about the wider world. Why not get astrophysics students to read French literature at the same time?

When the Hedgehog and the Fox was written in 1953 there was no internet, smartphones or tablets and in many cases the solid, reliable, trustworthy hedgehog was the ideal to aspire to. Times have changed, and we all need to encourage our inner fox if we are to thrive in the constantly-evolving digital world.

December 9, 2015 Posted by | Creative, Social Media, Uncategorized | , , , , , , , , , , , | Leave a comment

Content writing – the key new business skill

Having worked in PR for 20 plus years I’ve seen the power that well-written, relevant and targeted content can deliver for companies. Whether it is a pitch that leads to an article read by the target buyer at a B2B company that causes them to make contact with a client, or a press release that boosts name recognition with a potential investor or acquirer, public relations has always had the ability to deliver the right messages to the right audience at the right time.

Nederlands: Linked In icon

And the advent of blogs and social media has simply increased the importance of good content – helping engage with potential customers and position an organisation as an industry expert even before the target actively starts research. Additionally, with more and more of the buying journey taking place online, the SEO benefits of relevant, topical content cannot be underestimated when customers typically start the research process via Google or industry websites.

All of this is pretty well-known, but what I’ve seen over the last year or so is the use of content to reinforce the personal brand of business people. I don’t necessarily mean CEOs or entrepreneurs, who have always relied on the oxygen of publicity to build their reputations, but middle ranking managers on their way up. Rather than (or perhaps as well as) networking internally and bending the ear of their bosses with their knowledge and industry insight, they are now able to share through Twitter, and most particularly LinkedIn’s inbuilt blogging feature. This provides a platform which hosts individual’s content, as well as sharing it with their network, and further afield via LinkedIn Pulse. I’ve seen myself how incredibly powerful this is in keeping in touch with people you are connected to, and building your brand.

It seems to me that writing content is now one of the key skills that any manager needs, alongside technical knowledge of their particular field, understanding of their role (whether it is sales, administration or marketing, for example), and the basic business/financial nous that means they can read a spreadsheet and grasp the intricacies of a forecast and profit and loss account.

But making it easy to share content doesn’t necessarily make it easy to write good, well-thought out and grammatically correct pieces. The risk is that business people will jump on the content writing bandwagon and actually undermine their professional standing by penning incoherent, rambling or misspelled pieces.

To avoid this, here are six key ways of guarding against looking stupid when writing on LinkedIn. While the success of your content is up to you and your ideas, focusing on these ideas should help you remain professional and demonstrate leadership.

1. Be personal
People don’t want to read a corporate press release that simply been pasted into a LinkedIn blog post. By all means share interesting news from your company as an update on LinkedIn or Twitter, but a blog post should be personal and relate to your experiences and views on a subject. Obviously you need to balance your own thoughts and the views of your employer, but if necessary insert a statement that this a personal blog, not necessarily reflecting the position of the company you work for. However don’t be too personal – sharing too much detail about your home life or what you did at the weekend can alienate contacts, particularly if they only know you in a business environment.

2. Plan, plan, plan
So much content starts well and then rambles off into a dead end or randomly changes direction part way through. Sit down and write a skeleton of what you are going to say, with a beginning, a middle, and an end. What points are you going to cover? What is your conclusion? What are the alternatives? I find it helps to do this with pen and paper but the important thing is to start by planning, not start and hope for the best.

Remember that you’re not writing War and Peace but creating something that people can read online in a few minutes. So keep it to a manageable length (800-1000 words), and if necessary split your piece in two to avoid your ideas being lost.

3. Don’t plagiarise
Good content teaches someone something or moves the debate on, and remember that it represents you and your personal brand. Therefore don’t simply rip off other people’s ideas without giving them credit and a link to their work. Share your content with them and they may well share it in turn with their networks, boosting your reach.

4. Proof it
We all think we’re wonderful at spelling, but everyone has weak points, so make sure you spell check everything that you’ve written and I advise printing it out to proof it properly. It is best to write a piece, and then come back and proof it later on, giving you the advantage of fresh eyes. Always pass the article to someone else to review as well – whether they are part of your target audience or not, they can pick up mistakes that you’ve missed or areas where things need to be made clearer.

5. Share it!
Obviously LinkedIn automatically shares content you’ve created with your own network, but that should only be part of your outreach. Use Twitter to spread the word further and post the article on any relevant LinkedIn groups that you are a member of. You can even email it contacts if you think it would be of interest and help deepen engagement – but don’t just blast it out to your entire contact book.

6. And repeat
A single post is unlikely to make you a thought leader so look to create content regularly. It doesn’t matter if it is every week or every month, but set yourself a schedule and try and post at a regular time so that people eventually come to expect (and hopefully look for) your articles. Little and often beats writing a huge first post and then losing interest and going off to do something else.

Content writing is becoming a key business skill – but bear in mind that the world is full of bad or simply unread content. So take the time to think it through first before hitting the keyboard if you want to build your reputation as a thought leader.

November 18, 2015 Posted by | Creative, Marketing, PR, Social Media | , , , , , , , , , , , | Leave a comment

The price of digital exclusion

There is currently no consensus on how closely...

We live in a world where the skills needed to thrive are changing fast. A combination of the rise of digital, artificial intelligence and the move to a global economy means that many previously ‘safe’ middle-income administrative jobs have either been offshored or computerised. Consequently commentators predict a hollowing out of the economy, with a greater number of low wage, low skill roles at the bottom and a smaller number of highly paid jobs at the top of the pyramid. This growing imbalance – and the potential social issues it brings – has been analysed and written about by a number of leading economists, such as Thomas Piketty, in his surprise bestseller, Capital in the Twenty-First Century.

Despite what the nostalgic might think, this process is irreversible. Globalisation is accelerating and we can’t put the genie of artificial intelligence back into the box. So, how do we ensure that the UK workforce, and UK companies, are able to cope?

Go.On and On?
The key start point is to understand that the traditional model of learning a particular trade or profession and then spending your entire life working at it is no longer valid. Kids at school today will have multiple jobs during their careers, many of which may not even have been invented yet. Given that you can’t teach someone about a profession that doesn’t exist, the best approach is to provide the skills for lifelong, independent learning, such as self-reliance, adaptability, collaboration and other thinking skills.

The other vital element is to have an understanding, and mastery of, technology. To be fair, most children are miles ahead of their parents in this regard, and initiatives such as re-introducing programming to the school curriculum and low cost machines such as the Raspberry Pi are helping to drive these digital skills.

But the risk is that the current adult generation is falling behind. Research by charity Go.On UK has found that 12 million people (roughly a quarter of the adult population), lack the basic digital skills required today. 23% of small businesses also don’t have these skills. Go.On defines these skills in 5 areas:

  1. Managing information (finding, storing and managing online information)
  2. Communicating (communicating digitally, interacting online)
  3. Transacting (shopping/selling online, managing finances digitally, registering for government services)
  4. Problem-solving (using online resources to learn and solve problems)
  5. Creating (basic content creation, such as writing a social media post)

For many of us, these are not particularly complex or challenging, but failure to learn them not only hurts the chance of a good job, but also financially impoverishes people. If they aren’t able to buy goods online, they may well end up paying more, while they will be increasingly cut off from family and friends. At the same time a significant number of people are being held back, such as by slow internet access speeds, poverty and a lack of technology.

To show the scale of the problem Go.On has created a digital heatmap of the country, which combines local factors (infrastructure, education, demographics), with the percentage of those with digital skills. This shows the areas that are at risk of being left behind – “digitally excluded” – in the future. What is stark when looking at the map is how few regions and local authorities are safe – the vast majority have a medium to high likelihood of exclusion.

The Go.On findings must act as a wake-up call and a way of focusing efforts on increasing digital skills. My concern is that there doesn’t seem to be one body responsible for this – it is left to a combination of local authorities, central/regional government, schools, colleges, charities and even the BBC. While everyone should be responsible for learning basic digital skills, it needs a co-ordinated effort to level the playing field. Otherwise the imbalance shown in the Go.On map will actually widen, rather than shrink, hurting both individual prospects and the overall economy. It is time for rapid government-led action, and it needs to happen quickly.

October 21, 2015 Posted by | Creative, Marketing, PR | , , , , | Leave a comment

How my consultancy is bigger than Facebook UK – and that’s a bad thing

 

I’ve been in business for five years now, and things are going well. I’ve seen revenues for my PR agency grow every year, thanks to loyal clients and (if I say so myself) some wonderful work. Yet it was only when I saw how much corporation tax Facebook paid last year in the UK, that I realised exactly how well I was doing. Comparing our two tax bills, I’ve paid considerably more than the £4,327 Facebook shelled out in 2014. Therefore it stands to reason I must have made much more money than the social network, even if globally its profits were $2.9 billion. Its UK business must just be lagging behind the rest of operations – after all very few people use Facebook in this country.

Facebook logo Español: Logotipo de Facebook Fr...

Obviously this isn’t the case, and like companies from Starbucks to Google, Facebook has engineered its operations to minimise its tax bill. As a businessman myself I can understand this – but what I can’t understand is that it doesn’t take into account the reputational damage that results. After all, company filings are public documents that anyone can access, and there are enough people out there who know how to read a balance sheet and can therefore spot holes in a company’s story without needing to spend too much time investigating.

I even felt sorry for the poor PR spokesperson delegated to read out the anodyne statement that Facebook was compliant with UK law, and all staff paid income tax (how gracious!). Then I realised that the spokesperson was one of the 362 people that shared the £35.4m in bonuses that pushed Facebook’s corporation tax bill down so close to zero, and any sympathy evaporated.

On one hand companies talk about how important their brand, and brand values, are to their success, yet cheerfully spend their time undermining these very same values from within. Why? I think much of this comes from a fundamental disconnect between senior management and those responsible for public relations or brand reputation. They aren’t involved in senior-level decision making, meaning that no-one is pointing out the potential pitfalls of being seen as a poor corporate citizen. In an age of consumer power, the lack of a check on potential corporate skulduggery can prove fatal to a brand.

Ever since I’ve been in public relations, which is over 20 years, there have been calls for PR to have a seat on the board and to be more involved in setting strategy, rather than just delivering it. So why hasn’t it happened yet? Partly it comes down to PR’s own reputation, with the discipline seen as more Ab Fab than strategic, and limited in what it can achieve. The rise of digital and the increase in the importance of corporate reputation should have changed that, but my impression is that the overwhelming number of FTSE 100 companies still don’t have or seek senior level PR counsel until too late in the process.

It is therefore time for PR people to take a step up and build the business understanding that they need to communicate with other senior management. Talk their language, link campaigns and messages to business goals and objectives, and if necessary, scare the bejesus out of people by explaining the financial (and even judicial) consequences of not thinking through decisions or ignoring dubious practices. While Facebook’s tax policies haven’t hit its share price, just look at Volkswagen’s financial woes for an illustration of what happens when you cover up bad behaviour. Despite its US head admitting he was briefed on how the car maker could fool emissions tests in spring 2014, nothing was done to remedy the problem or to come clean.

Looking at the PR implications of business decisions shouldn’t just be limited to big companies with expensive communications departments. Every company has the potential to be caught out if it transgresses the brand values that it trumpets to the world. So whether you are an international social network or a local plumber, think through the PR consequences of your strategy, before you implement it, if you want to avoid potential long-lasting reputational damage.

October 14, 2015 Posted by | Creative, PR, Social Media | , , , , , , , , , , | 1 Comment

Has Twitter spawned Jeremy Corbyn?

Amidst all the column inches written about the election of Jeremy Corbyn as Labour leader, there are a couple of factors that people seem to be forgetting. True, he is probably now the most famous Jeremy in the country (according to an unscientific Google search I just carried out, links to stories about him outrank Clarkson and Kyle), but he is actually part of a wider protest movement across the Western world. Far left Greek party Syriza has just been re-elected, despite backtracking on its promises to free Greece from onerous bail-out terms. Spanish left wingers Podemos have also shown well in opinion polls while Catalan nationalists won a majority, albeit a slim one, in this week’s regional elections. Going back to the UK, look at the success of the Scottish Nationalists at the election and the continued high profile of Nigel Farage.

Jeremy Corbyn

Across the pond, non-politicians such as Donald Trump and Carly Fiorina have been leading polls amongst Republicans, while Bernie Sanders, who describes himself as “the only elected socialist in Congress”, is keeping Hillary Clinton honest in the Democratic contest.

So why are voters across Europe and the United States supporting mavericks on the right and left, even if in many cases there is little chance that they will be able to carry out their policies?

No dead pig bounce
The easy answer is that they are sick of career politicians who seem keener on hanging onto power than actually connecting with voters. Many people think politics itself is broken. Even David Cameron’s alleged assignation with a dead pig just makes us shrug and doesn’t really impact his ratings either way. At the same time many people still don’t see the good times coming back after the recession – real wages in the UK are still below those of before the crash for many people, hurting confidence. Globalisation and the rise of ever-more intelligent computers is eating into traditional middle class occupations, causing uncertainty for those with skills that can be potentially automated or offshored.

Obviously, any alternative to this combination of depression and drabness has a chance to stand out from the crowd. And challenger politicians can get away with half-baked policies or even, as in the case of Donald Trump, a promise that he’ll come up with some “really good ideas” when he is elected.

But I think there is a more fundamental force at work – the internet and social media has completely changed how we consume our news and form our opinions. We live in Andy Warhol’s era of everyone being famous for 15 minutes, from a man captured on camera abusing a motorcyclist to celebrities reciting music lyrics with a Shakespearean twist.

What the likes of Corbyn and Trump share, despite their radically different views, share is a combination of solidity, outsider status and an ability to come up with inspiring (or eyecatching) soundbites that suit social media. They don’t appear stage managed but at the same time are reassuring while not being part of the establishment.

Politics 2.0
In many ways they are the start-ups of the political world, promising radical change to shake up a traditional market, in the same way that the likes of Google, Amazon and Uber have changed the industries they operate in. Perhaps voters believe that politics can be re-invented, just like retail and telecoms.

What will be interesting to see is how traditional politicians respond – will they continue to operate as before, like many of the companies that digital start-ups displaced, or can they re-invent themselves successfully and build a brand that fits with the internet electorate? Or will we see a new generation of less radical, but more social media savvy, politicians come through to replace the likes of Corbyn and Trump? One thing is for certain, in politics as in every other sector, those that cope best with today’s social, mobile world will be those that engage with voters and ultimately win their loyalty and power.

September 30, 2015 Posted by | Creative, Marketing, PR, Social Media | , , , , , , , , , , , , , , , , | 1 Comment

Will Facebook take over the world?

 

Facebook logo Español: Logotipo de Facebook Fr...

Last week Facebook announced that on Monday 24th August 1 billion people logged into the social network. That’s 15% (almost one in seven) of the world’s population using Facebook in a 24 hour period. And given that over half of the globe still isn’t online, the percentage of actual versus potential users is actually much higher – closer to 33% of the 3.195 billion internet users.

The announcement begs three big questions:

1.Is it a good thing?
It is difficult to find a parallel in history for a single entity being used by so many people across the world. There have been monopolies in the past of course, particularly in telecoms before deregulation, but these operated at a country level, and you didn’t have a choice. You wanted to make a phone call and you had to use BT or AT&T. When it comes to control over how people communicate the only example that comes to mind is organised religion, such as the pre-Reformation Catholic Church where all of Europe was subservient to the Pope. As yet, Mark Zuckerberg hasn’t branded any Twitter users as heretics, for which we should obviously be grateful.

Critics will argue that having one company central to how we communicate with friends and family, find our news and even shop is a bad thing. On the other hand, Facebook fans will point out that you have a choice – other social networks are available and the past is littered with previously successful companies (such as MySpace) that failed to evolve. This does ignore the impact of the network effect – as more and more people are on Facebook, it becomes increasingly necessary to be on there if you don’t want to miss out. Technically it is very easy for anyone to create a new social network, what is difficult is enticing enough people to join to make it necessary for their friends to also jump aboard.

What is definitely true is that Facebook, like other international online giants, does need to scrutiny that matches its power and reach. I’m not talking about regulation per se, but any organisation that has Facebook’s combination of personal demographic data and ability to analyse it on a grand scale has to meet the highest standards of behaviour.

2.What about the other 85%?
The obvious point that many people have made is that if 1 billion people were on Facebook on a single day, the remainder of the world (85% in fact), were doing something different. As we’ve seen, Facebook has captured a large percentage of the online population, which is why the company’s efforts are being put into increasing the number of people with access to the internet in some form. Its main vehicle for getting people online is Internet.org, which provides free basic internet services in areas where it is either non-existent or unaffordable. Some of the ways Internet.org is looking to extend coverage include high altitude planes beaming a signal to a particular area, lasers and satellite technologies. However Internet.org has attracted criticism for only providing access to a walled garden of services, including (surprise surprise) Facebook itself.

Clearly if Facebook is to grow it is easier to expand the pie of internet users and reach the currently unconnected, rather than target the refuseniks in countries where it already enjoys high penetration rates. Expect more efforts to extend internet access – probably not just within developing countries but also within ‘notspots’ inside existing markets, thereby encouraging people to use the service even more.

3.Where next for Facebook?
Facebook has already overcome two major hurdles that have defeated its rivals. It has successfully transitioned to a mobile-first world (87% of access is from mobile devices), and is generating growing profits. As well as extending its reach to new victims (sorry, consumers), it also needs to increase engagement – i.e. ensure people still log on and use the service, and do it more often and for longer. The big bet that Zuckerberg has made here is on virtual reality, with the $2 billion purchase of Oculus VR expected to spawn headsets that deepen the experience of using Facebook and interacting with your friends. This, for me, is where things start to get more than a little creepy – if people are addicted to Facebook now, just imagine the time they’ll spend online if they can essentially experience reality without leaving their screen. Plus, with the current size and design of headsets, everyone will look like they are part of Daft Punk.

So, to answer my three questions, I’d say we should be wary about Facebook’s might, keep an eye on its efforts to reach the other 85% to ensure there is a level playing field when it comes to access, and be sceptical about the advantages virtual reality can actually bring us. After all, you could just pick up the phone and talk or, heaven forbid, chat to someone down the pub……

September 2, 2015 Posted by | Creative, Social Media | , , , , , , , , , , , , | 1 Comment

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