Money and football have not been far from the news over the past two weeks, with FIFA’s long-rumoured corruption finally exposed. For most people, football fans or not, it is heartening to see the crooks who lined their pockets hopefully being brought to book. The scale and audacity of the bribery is astonishing. Just take the millions supposedly sent to support football in Trinidad and Tobago that allegedly ended up in the pockets of former FIFA vice-president Jack Warner. Added together it could probably have funded multiple stadiums the size of Wembley, for a country with a similar population to Glasgow.
However, the tangled web of corruption, ongoing investigations, and the fact that current FIFA president Sepp Blatter will not officially step down until a new election is organised (taking at least four months), shows that the scandal will not be over anytime soon. And the scale of the problem is shown by Blatter allegedly receiving a standing ovation from FIFA staff after he returned to work following his resignation.
FIFA needs to rebuild its reputation, but this is not going to be easy – after all, the next two World Cups have already been awarded to Russia and Qatar making it difficult for the organisation to simply draw a line in the sand and begin the bidding process again, without upsetting the potential hosts.
So from a PR perspective, what can FIFA do to change its reputation? I’d say there are five things it needs to look at:
1. Accelerate the election
The first step is to remove Blatter from the building – and that means holding the election as quickly as possible. Until then the organisation is in limbo and cannot move forward. The election itself has to be open, transparent and clear – country football federations need to vote publically so that they can be held to account by their own media and public.
2. Bring in independent experts
The public perception is that FIFA needs root and branch reform – and that existing senior management are not the right people to do this. It needs to bring in a team of independent experts who understand governance and compliance to create a completely new structure for the organisation and everything it does. This can then be voted on by delegates at the conference, but should follow external best practice, rather than simply tweaking existing ways of doing business.
3. All senior remuneration to be transparent
MPs have to publically declare all of their outside financial interests and have a fixed salary. The same should be true of senior FIFA officials, allowing them to be scrutinised by the media and any wrongdoing brought to light. After all, the fact that ex-FIFA vice president Chuck Blazer spent nearly £4,000 per month renting a flat for his cats should have led to questions about exactly how much he was earning. Additionally, money needs to be shared more equitably – particularly with countries actually hosting the World Cup – so that it doesn’t cost them billions for little reward.
4. Bring in new blood
Footballers are idolised around the world – yet FIFA is seen as broadly being run by stuffy bureaucrats. More current and recently retired footballers need to be involved in FIFA, particularly in its initiatives to spread grassroots football around the world. In the same way that the UN uses celebrities as goodwill ambassadors, so should FIFA. This would both provide a stronger link to the game itself and highlight positive initiatives.
5. Move HQ
Switzerland is the home of many international sporting governing bodies, from cycling to the Olympic movement. But in many people’s minds it is also a country known for secretive private banks, allegedly happy to help with tax evasion. If FIFA is serious about improving global football it should move its HQ from Switzerland to somewhere more in keeping with a new, open culture. It could follow the lead of the UN and open up in New York or be more daring and move to Africa or Asia. That would have the added advantage of helping with a fresh start, with new staff, a new office and new ways of working. Yes, it would be expensive, but FIFA has the money and it would send a strong signal to the world.
Rebuilding FIFA’s reputation will take years, but as the International Olympic Committee has shown, strong leadership, transparency and a desire for change eventually translates into major improvements. The public relations task starts now – and is going to last for a lot longer than 90 minutes.
In a previous blog I wondered whether the rise of technology would mean the end of interesting, creative ads, to be replaced by a combination of content-based marketing and basic, fast, algorithmic ads powered by our online behaviour.
I still believe that the ability for us to zone out ads on digital media (whether TV or the internet) means that brands are going to have to try harder to engage our attention on these channels. One area I didn’t talk about was print advertising in newspapers and magazines. After all most commentators have been saying for a while that the internet has pretty much killed off physical publications, with old media facing falling circulations and rising costs. But recently listening to Sir Martin Sorrell, the boss of advertising giant WPP, has made me think again. As a man who spends millions of client money on online and offline ads, he obviously knows what he is talking about, and he believes that while digital advertising may be getting the eyeballs, traditional media is getting the engagement.
He points out that having tens of thousands of Facebook Likes, mentions on Twitter or prominent online campaigns is meaningless if it is merely transitory and consumers simply skip onto the next big thing, without lingering over your message. Additionally, it is quite possible for online ad campaigns to be subject to clever frauds where views are artificially inflated to justify increased spend.
In contrast, offline readers spend more time reading a newspaper or magazine, including viewing the adverts, driving a deeper engagement that means both PR and advertising messages are more likely to be remembered. Obviously it still means the story or advert has to be memorable, interesting and targeted, but if it meets those criteria, it could do more for your brand than ten times as many online ads or mentions.
The other advantage of print is that, battered by digital, advertising prices have come down considerably over the past few years. This makes print more cost-effective than it was previously, adding another reason to invest in the channel.
The disadvantage of print is it is that much more difficult to measure who has seen your article or advert and how it has moved engagement forward. Clearly every reader does not read a paper cover to cover, including the ads, but there’s no set way of working out its impact. It is no coincidence that WPP has recently invested heavily in measurement technology as this will be key to really demonstrating engagement – both on and offline. In the past print measurement, particularly for PR, was incredibly vague. For many years the standard way of demonstrating PR ‘value’ for a particular piece of coverage was to take the equivalent cost of the same size advert and multiply it by three as editorial was deemed much more believable by readers. Thankfully those days have gone, but it does leave a gap. By contrast you can measure everything online – but sheer numbers don’t tell you everything, particularly about engagement.
What is needed is a new approach that can link the two – but in a way that isn’t intrusive, respects user privacy, and doesn’t involve in extra work for the publication, brand or reader. Google Glass would have met some of these needs, but certainly didn’t tick the privacy box. So, the search goes on – but until then, marketers should bear in mind that eyeballs don’t equal engagement and choose their media channels accordingly.
There’s been a number of recent pieces about the rise of self-learning technology that uses artificial intelligence (AI) to carry out tasks that would previously have been too complex for a machine. From stock trading to automated translations and even playing Frogger, computers will increasingly take on roles that used to rely on people’s skills.
Netflix used an algorithm to analyse the most watched content on its service, and found that it included three key ingredients – Kevin Spacey, director David Fincher and BBC political dramas. So when it commissioned original content, it began with House of Cards, a remake of a BBC drama, starring Spacey and directed by (you’ve guessed it) Fincher.
This rise of artificial intelligence is worrying a lot of people – and not just Luddites. The likes of Stephen Hawking, Bill Gates and Elon Musk have all described it as a threat to the existence of humanity. They worry that we’ll see the development of autonomous machines with brains many thousands of times larger than our own, and whose interests (and logic) may not square with our own. Essentially the concern is that we’re building a future generation of Terminators without realising it.
They are right to be wary, but a couple of recent stories made me think that human beings actually have several big advantages – we’re not logical, we don’t follow the facts and we don’t give up. Psychologist Daniel Kahneman won a Nobel Prize for uncovering the fact that the human mind is made up of two systems, one intuitive and one rational. The emotional, intuitive brain is the default for decision making – without people realising it. So in many ways AI-powered computers do the things we don’t want to do, leaving us free to be more creative (or lazy, dependent on your point of view).
Going back to the advantages that humans have over systems, the first example I’d pick is the UK general election. All the polls predicted a close contest, and an inevitable hung parliament – but voters didn’t behave logically or according to the research and the Tories trounced the opposition. While you might disagree with the result, it shows that you can’t predict the future with the clarity that some expect.
Humans also have an in-built ability to try and game a system and find ways round it, often with unintended consequences. This has been dubbed the Cobra effect after events in colonial India. Alarmed by the number of cobras on the loose, the authorities in Delhi offered a bounty for every dead cobra handed in. People began to play the system, breeding snakes specifically to kill and claim their reward. When the authorities cottoned on and abandoned the programme, the breeders released the now worthless snakes, dramatically increasing the wild cobra population. You can see the same attempt to rig the system in the case of Navinder Singh Sarao, the day trader who is accused of causing the 2010 ‘flash crash’ by spoofing – sending sell orders that he intended to cancel but that tricked trading computers into thinking the market was moving downwards. Despite their intelligence, trading systems cannot spot this sort of behaviour – until it is obviously too late.
The final example is when humans simply ignore the odds and upset the form book. Take Leicester City. Rock bottom of the English Premiership, the Foxes looked odds-on to be relegated. Yet the players believed otherwise, kept confident and continued to plug away. The tide now looks as if it has turned, and the team is just a couple of points away from safety. A robot would have long since given up……..
So artificial intelligence isn’t everything. Giving computers the ability to learn and process huge amounts of data in fractions of a second does threaten the jobs of workers in the knowledge economy. However it also frees up humans to do what they do best – be bloody minded and subversive, think their way around problems, and use their intuition rather than the rational side of their brain. And of course, computers still do have an off switch………….
After announcements last year, this week saw the launch of the first Apple Watches, although they won’t go on sale until 24 April. The cutely named Spring Forward event saw the tech giant reveal all 38 models, which will range in price from £299 (for the sport model) to £8,000+, depending on screen size, design and whether you want it in 18 carat gold.
More importantly Apple showed a selection of the apps that it expects to drive demand for the device. You can make touchless payments, receive phone calls, open a compatible hotel room door (rather than using a keycard), and remotely open an internet-connected garage door (no, I don’t have one of those either). However for a large number of functions, such as messaging, GPS tracking and making phone calls you’ll need an iPhone 5 to run alongside your new watch.
Apple is not a stupid company and has grown to be the biggest quoted business in the world by revenues through reinventing the music and smartphone markets. It hired former Burberry chief executive Angela Ahrendts to head up its online and physical stores, partly to help its move from technology into fashion with watches. I remember loudly proclaiming that the iPad would never catch on due its innate pointlessness, and now I rely on it every day. But I still see some serious challenges to the Apple Watch attaining critical mass. Here are four of them:
The cost of the Sport model begins at £299, with prices for the mid-tier Watch version starting at £479. To me, this is a lot of money to spend on a watch, even one that looks as sleek as the
Apple device. And for £900+ you can buy a low-end TAG Heuer, that you know will last for a long time without needing to be upgraded as software advances. Yes, millions of people have iPhones, but the vast majority got them on subsidised deals that meant they didn’t have to fork out close to the real sales price. A better comparison is the similarly priced iPad, which has seen sales slow as the market becomes saturated over time. Therefore predictions of sales of 60 million seem excessive, with the market much more limited than that.
2. Does it do anything different?
Anyone of a certain age who saw or read Dick Tracy loves the idea of using their watch to make a call, even if it is to the office rather than for police back up. But Dick Tracy didn’t have a smartphone, which can do pretty much everything a watch can do – and more besides. And as Apple has said, you’ll need to retain your iPhone to provide many of the functions that can’t be squeezed into the watch. Admittedly the iPhone is getting bigger, making it more difficult to use for things such as contactless payments, but equally the watch could be seen as too small for many other activities.
3. A whole new market
Apple has always been known for its design excellence, and the Watch appears to be equally stunning, admittedly with a bulkier face than a traditional wristwatch. Hiring Ahrendts also points to a desire to bring in luxury marketing nous to help it move into a different sector, where factors outside technology excellence and cool apps could be more important. Can it become the fashion accessory that everyone wants? In the ultra-competitive watch market it will be difficult, though expect Apple to try to jump the chasm from geek to cool.
4. Battery life
Watch batteries traditionally last for years. In contrast iPhones provide just hours of charge, depending on how much Candy Crush you are actually playing. So the news that the Apple Watch will keep going for 18 hours is disappointing to say the least (although the company says that it will continue to show the time for up to 72 hours after that). Essentially consumers will need to charge the watch every night, plugging it in alongside their iPhone ready for the morning. It just reinforces that this is a technology product, rather than something you wear, and is bound to put some people off.
I could be as wrong about the Apple Watch as I was about the iPad, but to me, despite the hype, it won’t move beyond being a niche product for fanboys and girls who want to pair it with their latest iPhones. For me, if I had the spare cash I’d buy a TAG instead and leave technology to my phone……….