I don’t think there’s ever been a better time to launch a startup in the UK. The public profile of the tech industry is incredibly high, and those that create businesses are more likely to be seen as visionary entrepreneurs than cranks who couldn’t get a job in a proper company. Indeed, for those leaving university, setting up your own startup is a valid (if not as initially lucrative) alternative to becoming an accountant, banker or lawyer. I’m sure startups would complain that it is still difficult to raise money, or scale up their businesses, but it feels that there is now wide public and political acceptance of the importance of creating a culture that encourages startups.
Read the press and politicians’ speeches and there seems to be a relentless search to find the ‘European Google’ or ‘British Facebook’, multibillion dollar global companies that can become standard bearers for the industry. Alternatively, other European companies essentially mimic what is being done in the US, taking their business models, localising them and then hoping that first mover advantage will let them create viable businesses before the original enters the market.
The people that run startups are smart, as are the venture capital funds that back them. But are they looking in the right areas when it comes to creating new businesses – as an article by Liam Boogar in Rude Baguette recently asked “Where are the European startups to solve Europe’s biggest problems?” Leaving aside the question of whether Europe is cohesive enough that the same problems apply to life in Edinburgh, Athens and Bucharest, it is a valid point. What issues can be solved, first in Europe, and then expanded globally, to create thriving companies that benefit us all?
The article focuses on the need to shake-up the savings market, and with interest rates in many countries close to (or even below) 0% I can see the opportunity to transform the sector, such as through peer-to-peer lending.
However, what other areas would enable European startups to build global businesses? Thinking about the particular problems Europe faces, here are four that come to mind:
Across Europe, people are living longer and birth rates are falling. Longer lifespans increase pressure on health and social care services, as the elderly battle chronic diseases and poor health. While this isn’t just a European problem, it is one that startups can focus on, particularly given the public money currently being spent on healthcare research. Areas such as wearable monitors and the Internet of Things can potentially help improve the quality of care, even allowing people to remain in their own homes, rather than be treated in hospital.
From driverless cars to drones, technology is revolutionising transport. With its combination of major car and aeroplane makers, Europe is well-positioned to lead the way, but it needs an injection of startup energy and fresh thinking to succeed. Whether it is new ways of charging electric vehicles as they wait at traffic lights or smarter cities where you are automatically guided to the nearest parking space, there is plenty of scope for innovation, along with the chance to scale up to export the technology across the globe.
More than 6 million jobs were lost in the recession between 2008-13, and youth unemployment in many countries remains high. Many of the roles that were made redundant are simply not coming back as they have either been offshored to lower wage economies or replaced by technology. What are needed are ways to reskill European jobseekers so that they can compete in the global market. Much of this should be the responsibility of governments, but technology can help with new ways of training, new opportunities for collaboration and the encouragement of remote working to combat rural depopulation.
4. Cutting bureaucracy
All governments, of whatever political persuasion, seem to delight in creating red tape that tangles up citizens and businesses alike. And, despite the European Union, there is still a range of different measures that need to be met. Many countries have begun to put their services online, but more can be done, and in many cases nimble startups can get things done quicker than lumbering government departments.
I’m sure there are plenty more European problems that need solving, from the environment to education. These don’t just benefit society, but are potentially extremely lucrative as well. So the challenge for startups and entrepreneurs is to try and solve them – and at the same time we might create the European Googles that politicians are so keen on.
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.