Revolutionary Measures

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, which provides free basic internet services in areas where it is either non-existent or unaffordable. Some of the ways is looking to extend coverage include high altitude planes beaming a signal to a particular area, lasers and satellite technologies. However 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

Death of a (car) salesman

Like anything, buying a new car has positive and negative parts to the journey. The excitement of choosing and test driving a shiny new vehicle has to be balanced with haggling with a salesman in a dealership and painfully avoiding the add-ons and extra warranties that they want to burden you with (and co-incidentally give them a bigger commission than on the car itself).

Automobile dealership - service and repair are...

Yet, the internet was meant to remove middlemen and enable us to deal direct with the producer. It has worked in industries such as travel, where package holiday companies have had to reinvent themselves in an era of cheap flights, AirBnB and TripAdvisor. But for bigger ticket purchases we still rely on car dealers and estate agents rather than dealing directly with manufacturers or those selling their house.

The end of middlemen?
So why are these middlemen still here and will they survive for much longer? After all, most buyers now read car reviews online, check manufacturer videos on YouTube, get information on options from websites, and can arrange finance quickly at the click of a mouse. No wonder that the average number of dealers that buyers visit when purchasing a new car has dropped from 5 to 1.6 in the US over the last ten years. As in a lot of fields, more and more research is carried out online without needing to interact with anyone, let alone a sweaty dealer in an ill-fitting suit.

Illustrating this trend, upstart electric car company Tesla is looking to go direct to customers in the US, cutting out dealers altogether. Other manufacturers are trying more limited experiments with special editions sold online only or dealerships remodelled to be more like the Apple Store, with advisors providing information and help, but no hard sell.

The pace of technology change within the car also threatens to make the dealer obsolete. Modern cars are computers on wheels, streaming data back to the manufacturer and able to refresh their operating system remotely without human (or mechanic) intervention. Tesla regularly updates the software on its car over the air– with an upgrade in January 2015 improving the performance of its Model S, meaning it can match the acceleration of a McLaren MP4-12C.

However as a recent piece in The Economist points out, changing the system will be difficult. Dealers are a powerful lobby, and while they don’t make much money on each new car they sell, the ancillary products and ongoing servicing relationship can be extremely lucrative. It also provides buyers with the opportunity to get a better deal by haggling between rival garages – if you have the inclination to do so.

I think that there are more basic reasons for any middleman, whether a car dealer or travel agent, to survive – adding value, trust and ease. These are important concepts for any company in the digital age to embrace and it is worth looking at your business with these in mind.

1. Adding value
With the vast majority of information now a Google search away on the internet, and prices displayed for everyone to see, do you really add value or are you a hindrance to the process? Again, the Apple Store is a good example to follow. You can buy your iPad from one of a hundred shops or websites, but the help you receive and the ability to get your questions answered in a positive, unpatronising way naturally leads people to the Apple Store.

2. Trust
Do consumers trust you? Or more to the point, do they trust you more than the manufacturer you represent? One of the factors I think will hold back the demise of dealerships is that consumers trust car makers less. You only have to look at botched recalls and unreported faults to see why. Car makers are also much more distant than your local dealership, making it difficult to build a relationship of trust. That’s not to say dealers are safe – they regularly top polls of least trustworthy occupations, but in the kingdom of the blind, the one eyed man is king.

3. Ease
People have to do more and more with less and less time. In many ways the internet has made us more time-poor. Whereas before a holiday could be booked by marching into the travel agency and asking what they had available, it now takes hours of internet research, comparing the relative locations of villas on Google Maps and poring over TripAdvisor reviews. Those middlemen that still have a place recognise that they need to make things easy, providing a helpful service that cuts down the time you need to spend and removes roadblocks from the customer journey, without charging the earth.

Looking at your own business, do you meet these three criteria? If not, it is time to change, before pressure from consumers and manufacturers squeezes you out of the market.

August 26, 2015 Posted by | Marketing, Social Media, Startup | , , , , , , , , , , | Leave a comment

Are startups solving the right problems?


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.

Relief map of Europe and surrounding regions

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:

1. Healthcare
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.

2. Transport
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.

3. Employment
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.

August 5, 2015 Posted by | Uncategorized | , , , , , , , , , , , , | 2 Comments

Do we really need Chief Marketing Technology Officers?


Photo Flickr –

The last five years has seen two, separate trends hit marketing. Firstly the use of technology has skyrocketed as digital channels such as the internet, email and social media have risen in importance. Secondly, marketing has increased in importance as businesses across every sector realise that it is central to winning and retaining customers, reaching stakeholders and engaging with external audiences.

At the risk of showing how old I am, it is worth comparing the tools I had in my first PR job twenty something years ago, and what I have now. I started with a computer (yay!), and it even had email – but that was purely internal to the ten person company I worked for. I could just about access the internet, but it was text based, rather than the colourful World Wide Web we know today. If I wanted to communicate with a journalist I looked them up in a paper-based directory and called them. If I needed to give them information I wrote them a letter, printed and posted it. The same applied to press releases, which were faxed over by clients, laboriously re-typed, faxed back to the client for checking and then sent to a mailing house for distribution. Press clippings were sent through the post by a monitoring agency, and I then stuck them on large boards to show to clients or made up physical cuttings books. And I worked for a technology PR agency, so at the advanced end of marketing at the time.

Now marketers have access to a huge variety of online tools and devices. You can find out information instantly about a journalist through the web and send out a press release to the whole world at the touch of a button through mailing software – not to be advised unless you want to get a reputation as a spammer. Email and social media have replaced the telephone as primary communication channels, while digital marketing technology is available to run campaigns from start to finish. You can target audiences based on what they have searched for, what they have talked about on social media or simply the pages they’ve visited online. Marketing has gone from being behind the curve on technology use to being one of the most active spenders on IT. Much of this has been driven by the move to digital, with a corresponding rise in status for marketing chiefs. Rather than Marketing Directors, often reporting to sales, more and more organisations now have Chief Marketing Officers (CMOs), with a seat on the board and budgets to match.

In 2011, Gartner predicted that the CMO will spend more on tech by 2017 than the Chief Information Officer (CIO). People scoffed at the time, but it looks like this is well on the way to becoming a reality. There are now more than 3,000 marketing technology vendors, all aiming to support agencies and in-house marketers in their roles. This frankly dizzying Tube map-style infographic tries to make sense of their relative positioning, but was probably out of date as soon as it was released, such is the rate of growth and innovation.

I’ve longed argued that marketers in general, and PR people in particular, need to change and embrace technology if they want to continue to be relevant. However they shouldn’t just focus on technology for its own sake, but use it to support what they do – engaging with customers and creating long-term relationships that benefit both sides. There’s no point running an award-winning Facebook page if it doesn’t link to your marketing and business objectives and is measured solely by the number of Likes it delivers.

So I’m suspicious of the latest marketing trend – the introduction of the Chief Marketing Technology Officer (CMTO). It aims to bridge the gaps between stereotypically creative marketing people and the more conservative, risk-averse IT department, finding a middle ground so that marketers don’t make the wrong choices, but aren’t held back by out of date IT procurement practices. Despite its spread in the US – Gartner says that 80% of organisations have someone filling a CMTO-type role, even if it isn’t called that, I don’t believe that marketing (or IT) needs one. It is surely better to get both marketing and IT to talk to each other, and learn how to co-operate, than to essentially try and create a half-way house of someone with the range of skills to talk both tech and marketing. If the CMTO sits in marketing you just end up with a silo-based, departmental approach, rather than looking at the wider picture of what the business needs. Technology is a vital part of every department’s role, but that doesn’t mean it is good for them to operate in isolation. Marketers should continue to improve their tech knowledge, but actually use their communication skills to talk to IT and get their help in navigating the marketing tech maze. Otherwise the risk is that money is wasted and the whole business suffers.

July 15, 2015 Posted by | Creative, Marketing | , , , , , , , , | Leave a comment

5 things I’ve learnt in 5 years of running my own business


Birthday Cake

This month marks several major anniversaries in my life. I’ll have been married for 15 years and July 1st was the beginning of my sixth year of running my own business. Leaving aside everything I’ve learnt from my marriage, here are the top five things I’ve learnt after setting up on my own:

1. Network, network, network
It doesn’t really matter what type of business you are, the easiest way to bring in new revenues is to be recommended by someone else. That only happens if you both do a good job for existing clients, and more importantly network with the community around you. Trekking out after work to meet new people can seem a bit like going to the gym – you know it is good for you, but you can invent 1001 excuses why you should just stay at home. Just like physical exercise, you need to overrule the little voice in your head and spend time networking. At the very least it’ll get you out and talking to people with potentially similar interests, or who offer complementary services – and it will also increase your public presence and ensure companies know who you are. And networking doesn’t stop there – connect with people on LinkedIn, follow them on Twitter and make sure you make the effort stay in touch.

2. What goes around comes around
This may sound a little Zen, but I’m a firm believer that being nice to people, and helping them, stores up good luck that could help you in the future. Give people that can’t afford to hire you advice, connect them to people that can help them and be supportive of the community around you. Even if it doesn’t bring you direct business you’ll feel better about the world around you and know that you’ve made a bit of a difference.

3. Learn to let go
If you are in a business that revolves around selling your time and expertise, there’s a natural ceiling on how much work you can do. There are only 24 hours in a day, and working on all of them isn’t a long term business strategy. So be ruthless and look through your workload. Hire people to help – whether experts such as an accountant to look after your book-keeping or someone to assist with admin, they will free you up to focus on what clients are actually paying you for. And you’ll (hopefully) get your evenings back too.

4. Keep doing new stuff
I know a lot of people that have built successful businesses, get to year six and decide on a complete change of tack, such as creating their own start-up. While I couldn’t do this myself, it shows the need to keep challenging yourself and doing new stuff. On a less dramatic note it could mean offering new services, taking on clients in a completely different sector or investing in new skills and qualifications. The world is changing fast and failing to change with it will not only leave you bored, but you’ll gradually lose clients as they move to businesses that offer new services that meet their new needs.

5. Build up an ecosystem
No business is an island, and you can’t survive on your own. As well as networking, make sure you plug into people with complementary skills who can help you, whether with advice, mentoring or just providing you with a sympathetic ear from time to time. I know I’d not have built my business without the support of a whole range of people, which is another reason to spend time networking in both the real and virtual worlds.

Don’t get me wrong, the last five years has been a lot of hard work, a few tantrums and occasional worries about where the next job would come from. However it has also been tremendous fun, bringing me into contact with a wide range of interesting, innovative and sometimes quirky people. I’ve learnt a lot, enjoyed being my own boss and been able to (sort of) balance work and life. Here’s to the next five years!

July 8, 2015 Posted by | Cambridge, Creative, Marketing, PR | , , , , , , , , | Leave a comment

The battle for banking – Amazon enters the fray

In a previous post I talked about how the big four internet companies Google, Apple, Facebook and Amazon (GAFA) had quickly developed their businesses. They’ve all moved beyond the sector they started in, extending what they offer to compete with each other in areas such as ecommerce, social networks, mobile devices and mapping.amazon_logo_wb_2328

How have they done this? They’ve used the four strengths that they each possess:

1. Agility
With the exception of Apple, GAFA was born on the internet meaning they aren’t burdened with long-established corporate structures compared to their traditional rivals. So they can make decisions quickly, unhindered by the warring departments and turf wars that characterise first and second generation technology companies.

2. Data
Rather than purely physical assets, GAFA’s USP is data and what it does with it. From selling our search histories to monetising our personal pages, the four companies have built up extremely detailed pictures of their users and their lives. This allows them to accurately predict future behaviour – how many times have you bought something suggested by Amazon even though you had no idea it existed until the recommendation popped into your inbox? The advent of even cheaper machine learning and potentially limitless cloud-based resources to crunch data means that this is understanding is only going to get more precise.

3. Focus on the customer experience
Even though the majority of interactions don’t offer the personal touch of a bricks and mortar shop, these companies have gone out of their way to create a simple to use customer experience. Compare the Apple iPhone to previous ‘smartphones’ – the only difficulty for users was unlearning the convoluted way you had to access information on Microsoft or Nokia devices. I know, I had one of the first Windows phones – the user experience was terrible. Innovations such as one click ordering, reviews and simple sharing all mark out internet companies from their rival.

4. Scale
The final differentiator is scale – and the speed at which it is possible to grow on the internet. Rather than taking 20 years to become dominant in an existing market, companies can create a sector of their own and expand globally within months. Part of this is down to the network effect, but scale has also been achieved by moving into adjacent markets and just adding them onto the offering for existing users. This lowers the cost of entry for the company with the user base and creates a barrier to entry to rivals.

Taking these four factors into account, banks should be worried about Amazon’s latest move as it builds on all four of these strengths. Amazon Lending will make loans to small businesses in the UK that sell through the company’s Marketplace platform, after the service was successfully launched in the US. The beauty of the scheme is that Amazon knows exactly how the small business is performing as it can track their sales, and then use this data to offer selected companies short term working capital to improve their business. As it handles all the billing and cash collection for Marketplace sellers it can even take repayments directly from their profits, before they it pays them, minimising risk.

Adding to this data advantage, it is also offering the same simple to use customer experience that sellers are already familiar with. Compared to faceless or unhelpful banks, this is just the sort of thing that expanding small businesses are looking for.

The ironic thing is that, on the face of it, there is nothing to stop banks offering something similar. Their merchant services arms handle online and offline debit and credit card transactions, so they have access to data that could be used to work out creditworthiness. They have a network of branches to provide loans through, as well as a significant online presence. But all of these are separate departments and banks don’t have the agility to bridge the silos and provide the one stop shop that businesses are looking for.

In the same way that Apple Pay is disrupting payment services, Amazon Lending will take another bite out of the traditional business of big banks. And, as more and more of such services launch that nibble away at banking profits, then they face being outmanoeuvred by nimbler, more customer-focused and cleverer competitors. It is therefore time for retail and business banks to get joined-up or face becoming low margin commodity businesses in the future.

July 1, 2015 Posted by | Marketing, Social Media, Startup | , , , , , , , , , , , , , | Leave a comment

How to turn FIFA’s reputation around


Português: Zurique (Suíça) - O presidente da F...

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.

June 10, 2015 Posted by | Marketing, PR | , , , , , , , , , , , , , | Leave a comment

Print engagement vs online eyeballs


Newspaper (Photo credit: Wikipedia)

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.

June 3, 2015 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , | Leave a comment

Ten lessons from ten years of YouTube

Español: Logo Vectorial de YouTube

This year YouTube celebrates its tenth anniversary. Originally founded in 2005 it has grown to have over 1 billion users, with 300 hours of video currently uploaded every minute of every day. For those without a calculator that’s 432,000 hours of new content every day.

Available in 70 countries and languages it made its founders $1.65 billion when Google bought the site back in 2006. At the time many thought they were mad, but the phenomenal growth and the amount of user data that it provides to Google has proved the doubters very wrong.

So what can startups and marketers learn from YouTube and the growth of video more generally? To mark ten years of YouTube, here are ten lessons I’ve drawn from its success:

1. Don’t always follow the rules
One of the big issues with startups in new markets is that existing legislation doesn’t cater for their disruptive power. Think of Uber and Airbnb and the regulatory issues they are having as they look to sidestep rules governing taxis and accommodation respectively. With YouTube and other video sites that launched at a similar time the big issue was users uploading copyrighted material. Competitors protected themselves by checking content before it was uploaded – slowing down their growth and adding to their overheads. In comparison YouTube let users upload anything and then took it down if lawyers or rights holders complained. This gave it a key differentiator, attracted more users and reduced its costs.

2. It is all about You
Despite the growth of brands on the site, the vast majority of content on YouTube is still created by amateurs. By giving a platform for everyone to easily share video, YouTube has been part of a democratisation of the web – as shown by the viral success of many of its videos, and the helping hand it has given to the careers of artists and bloggers such as Psy, Ed Sheeran, Zoella and many others. Brands trying to connect with audiences on YouTube need to understand that it is a two-way street – it isn’t just about providing your own content, but encouraging consumers to work with you and share what they are doing if you want to increase engagement.

3. Video is worth 10,000 words

It may have taken a few years for broadband and mobile data speeds to be able to comfortably cope with streaming video, but now it is the medium of choice for many. If a picture is worth a 1,000 words, video is at least 10x as effective as it allows people to see what is happening, rather than relying on words or static images.

4. It isn’t just cute cats
A few years ago I did some market research with C-level executives to find out where they got information from. The big surprise was that YouTube featured highly in their responses. But a quick look at some of the business content on the site – from the Harvard Business Review to TED talks and The Economist – shows that there’s plenty for any audience to learn from YouTube, whatever demographic they are part of.

5. It can be monetised
People do make money from YouTube. Aside from the celebrities and stars that have used the channel to launch themselves, owners of popular channels are able to make money from the ads around their content. The targeted audiences YouTube delivers (thanks to Google’s knowledge of viewer’s demographics), make it an important way for marketers to reach the right people quickly and easily.

6. Media has become multimedia
Ten years ago there was a sharp divide between traditional print media and the broadcast world. The combination of YouTube and cheaper, higher quality video cameras (or even just smartphones), mean that any journalist or publication can create and upload multimedia content quickly and easily. From interviews to reports, people now expect to see embedded video on news sites, with most media outlets now having their own YouTube channel to host and share content.

7. YouTube is the back end, not just the front end
For every video accessed directly on the site, many hundreds more are reached through other sites. Essentially YouTube provides a complete infrastructure for brands to set up their own channels, for free, and then embed links in their own site or other media. Again, it makes it easy for companies to share video, on or off the site.

8. Attention spans are shorter
People, particularly on mobile devices, are increasingly browsing video content, rather than settling down to watch it for a long time. While there are plenty of exceptions – my children would watch 10-15 minute videos of Stampylongnose playing Minecraft all day – most people don’t want to watch long form content on YouTube. So videos need to be short, snappy and broken up into bite size chunks if they are to be watched and shared.

9. Showing is easier than telling
Doing a DIY job used to involve poring through a manual or asking friends and family for advice. Now you simply go onto YouTube and watch a professional doing it, explaining as they go. The same applies to lots of jobs and hobbies, and with YouTube results prominently displayed in Google searches, it has never been easier to work out how to do something for the first time.

10. Innovation is constant
YouTube may be ten, but it still faces challenges. Facebook is looking to compete by making it simple for its users to share videos on the network, while streaming music services are waking up to the amount of music content watched on the site. Recently Snapchat announced that it has 100 million users watching 2 billion mobile videos every day. The shift to mobile and the fact that as video grows up it becomes more of a commodity means that YouTube needs to constantly evolve if it is to remain relevant.

Ten years is a long time in tech and social media, and the growth of YouTube shows how it has managed to build a brand by understanding what people want and giving them a platform to share. It will be interesting to see what the next decade brings – hopefully not another Justin Bieber………….

May 27, 2015 Posted by | Creative, Marketing, PR, Social Media, Startup | , , , , , , , , , , , , , , , | Leave a comment

Hunting for unicorns

Mankind has always had a fascination for mythical beasts, and none more so than the unicorn. Despite allegedly dying out in the flood after failing to board Noah’s Ark in time, they are still all around us in popular culture, from Harry Potter to children’s toys. I even found an exhibit in a Vienna museum labelled matter of factly as a “unicorn horn” – it was actually from a narwhal.unicorn

The horned horses are back in the news, in the world of tech at least, with any startup valued at over $1 billion by venture capitalists now dubbed a unicorn. However with more than 100 companies now achieving unicorn status there’s a growing worry that startups are trading short term valuations for longer term success. True, unicorn status helps attract skilled staff, but down the line it requires either a trade buyer that is willing to pay big money or an IPO to translate mythical (paper) valuations into hard cash. There have also been a raft of stories on how investors have structured their unicorn funding in ways that protect their cash (rather than the shares of others, such as founding teams) if the company should lose its value.

A focus on unicorns also favours certain sectors and types of company. A browse through Fortune’s latest unicorn list reveals a large number of consumer electronics (Xiaomi, Jawbone), retail (FlipKart, Snapdeal) and sharing economy (Uber, Airbnb) companies. In many ways this is what you expect – company valuations are based on what the addressable market is, so the biggest investment goes into those startups that can make most money.

However, it does potentially limit where investors put their money. There are lots of startups that will never be a Facebook or an Uber, but have the potential to be extremely successful niche players that could well grow into billion dollar valued companies. Look at ARM – when it began as a spin-off from Acorn Computers with a completely new business model, very few would have predicted its current success.

There’s also a definite geographic bias where unicorn investors are putting their money – Silicon Valley, China and India. Out of the latest Fortune list just three are in Europe, one in Australia and one in Israel. This doesn’t reflect the energy, ideas and potential in any of these places, particularly in emerging sectors. The danger is that if investors spend their time chasing unicorns they’ll miss out on the startups that could do with their help to build long term businesses that can make a difference to many markets.

So I think we need to add another category alongside unicorns. Keeping the mythical theme I’d go for centaurs. Sturdier than a unicorn, probably better in a fight and with a bit more intelligence (and opposable thumbs). They may not have the beauty or the (frankly over the top) horn of their flashier cousins but they are built for the long term, rather than mythical valuations that don’t necessarily deliver. Given the potential returns they can produce, it is time for investors to move away from the fascination with unicorns to more realistic startups that may be uglier, but have just as much potential.

May 20, 2015 Posted by | Cambridge, Startup | , , , , , , , , , | Leave a comment


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