Revolutionary Measures

Up Periscope?

I’ve mentioned previously that Twitter is at a bit of a crossroads. Compared to its social media brethren Facebook and LinkedIn it has found it hard to make the move from a network with lots of users to a viable business making significant profits. Twitter may have grown revenues to $1.4 billion in its 2014 financial year, but it is dwarfed by Facebook, and made a net loss. It even lost 20 million users in the last quarter of the year.

English: Up periscope!

Therefore it has been looking around for ways of increasing both engagement and revenues. Given that the 140 character limit on tweets is more than a little stifling, it has made a big bet on video – first with Vines and now with Periscope. With Vines being extremely short (essentially 6 second loops) they at least fitted in with the stripped down nature of Twitter.

However Periscope is something much more long form. Essentially it is an app that lets you live stream pictures from your mobile phone, in real-time, to your followers. It isn’t a new idea – apps such as Bambuser and Livestream have allowed this before. Even more recently Meerkat was the hit of the SXSW festival and raised $12m in funding, announced on the day that Periscope launched. As is the way of cool free new stuff, Periscope has quickly become wildly popular (in social media land at least). This is partly due to its ease of use, but probably more to the prevalence of wifi networks and all you can eat 3G/4G data packages that mean live streaming isn’t going to run up huge bills.

Unlike Vines, which have not really moved beyond being a niche application, there is obviously a lot of potential in live streaming, provided that Twitter can capitalise on its early mover advantage over the likes of Facebook. I can see five ways it can be easily used.

1. Journalism
We live in a real-time news cycle, driven by the likes of Twitter. Therefore it makes a lot of sense to add video to tweets from a press conference or the scene of a breaking story. It won’t replace having a full camera crew on hand, but will fill the gap between recording and going live. And it will be a boon to citizen journalists and members of the public, giving them another way of recording and sharing stories.

2. Adding to the buzz around events
Twitter works really well at collating and sharing what is happening at events such as conferences. By creating a hashtag and encouraging its use, information and opinions can be quickly published and, most importantly, found easily. It is even possible to skip the conference altogether and just follow the key points on Twitter. Expect conference organisers to embrace Periscope and encourage its use to give a fuller insight into events.

3. Sharing sports events
Much of the internet is driven by either porn or sports, and the X-rated opportunities for Periscope are pretty obvious. I presume Twitter will be quick to crack down on them, but the fact that you can live stream from a sporting event has more lasting possibilities. On one hand it will enable people to share football matches as they happen (expect screams of indignation from rights holders), but more importantly it will let niche sports get their coverage to more people, while using a minimum of infrastructure and at low cost.

4. Catching out celebrities/politicians
I’ll wager that it’ll be about a week before the first politician is caught saying something stupid/offensive while being live streamed. And, unlike Meerkat, Periscope video streams are kept for 24 hours, meaning that the evidence will be there to be shared, retweeted and generally distributed to the world. Celebrities are likely to fall into the same trap – expect people to use live streaming to replace selfies and photo bombing as a way of interacting with/embarrassing their heroes.

5. Live streaming cats
If cat videos are the most popular things on YouTube, it won’t be long before someone puts their cat on Periscope, either live streaming everything they do or finding a way of rigging up a camera to them to show everything they are doing.

Time will tell if Periscope actually does provide an extra dimension (and revenue earner) to Twitter. However, given I’ve seen people taking photos of all their meals and putting them on Facebook, be prepared for a combination of a lot of mundane content (and complaints from phone users who rack up huge bills) in the early days before it potentially finds its place.

 

April 1, 2015 Posted by | Creative, Social Media, Startup | , , , , , , , , , , | 2 Comments

Why we don’t want discussion with our morning coffee

When you think of Starbucks, the first thing that comes to mind is not discussions about race. So the company’s latest US campaign, called Race Together, which seeks to start discussions between baristas and customers feels misplaced.

The second location of Starbucks in Seattle wa...

Firstly, let me say I don’t doubt that it is motivated by the right reasons, rather than a desire to differentiate or for marketing purposes. It follows extensive staff open meetings where partners (staff) have discussed the whole situation of race in the USA after high-profile cases involving the police and black citizens in New York and Ferguson, Missouri, amongst other places. And in many ways it goes back to the original purpose of coffee houses as venues for, often raucous, debate and discussion.

However as the overwhelmingly negative feedback on social media confirms, a 21st century chain coffee shop is not the place to have a measured discussion on a topic as sensitive and nuanced as race. As one tweet put it, “I don’t have time to explain 400 years of oppression to you & still make my train.” I’d agree – as someone that absolutely refuses to give my name when ordering a coffee, being forced into talking about a difficult subject, no matter how important, with someone I don’t know is not my cup of tea. I’d say there are four reasons it feels like the wrong place for this type of communication:

1          Fit with purpose
People go into a coffee shop to get a drink, and while they may have an unprompted chat with a barista, it is more likely to be about sports or the weather than race. They aren’t necessarily in a mood to talk to anyone until they’ve had their first coffee of the day, and if they are would prefer to choose the subject themselves. And how can you have a long discussion about a complex subject in the couple of minutes it takes for your coffee to be ready?

2          Unbalanced relationship
There is also a monetary transaction involved – it doesn’t feel like an equal conversation when one person is a customer and is paying. A discussion that could be had on an equal footing outside Starbucks most definitely can’t be seen the same way within the coffee shop.

3          Training and knowledge
Baristas at Starbucks haven’t received any special training in debating, and are of course still expected to carry on doing their jobs while engaging customers in discussion. Notwithstanding the potential impact on the coffee they are making, the risk is that they are out-argued by customers on specific points, adding to the issue, rather than helping solve it.

4          Risk to reputation
As a communications professional I’d also look at the risk to Starbucks’ reputation. It is easy to be very British about Race Together and just write it off as patronising, ignoring the genuine American issue behind it, and the more open US culture of discussing your life with complete strangers. But you have to look at the slew of negative tweets and articles to see that many Americans were not impressed. Additionally, given the global nature of the brand, a campaign in the US has an impact across the world, affecting the attitudes of coffee drinkers in other countries.

Most of all it reminds me of a Monty Python sketch, where Michael Palin pays John Cleese to have an argument. It deteriorates rapidly into just contradiction and is ended by a combination of the police and some wooden mallets. I’m not suggesting that the same approach is necessary in Starbucks’ case, but it needs to focus its efforts differently if it wants to get its message across and a proper discussion started.

March 25, 2015 Posted by | Marketing, PR, Social Media | , , , , , , , , , , | Leave a comment

Publish and be damned

The old saying is that everyone has a book in them – it is just a question of sitting down, writing it, finding a publisher, marketing and then selling it. That used to be the hard part but technology is changing this, making the whole process easier. No wonder that UK publishers released 184,000 new and revised titles in 2013 – the equivalent of 20 books an hour, which means the country published more books per inhabitant than any other nation. In the US 1.4m print books were released in 2013 – over five times as many as 2003. That figure excludes anything self-published, pushing the total up even further.

English: The second generation Amazon Kindle, ...

 

So, what is driving this growth – and what does it mean for publishers? There are essentially four ways technology is making the writing and publishing process easier:

1          Writing and editing
The platforms for editing and proofing manuscripts are now predominantly online. This makes it easier for a single editor at a publishing house to work with multiple authors, and also allows the different parts of the process to be subcontracted to copyeditors, designers and proof readers.

2          Publishing the book
The rise of ereaders like Amazon’s Kindle mean that books don’t physically need to be printed. This speeds up the publishing process as it removes the sole manual, mechanical and time consuming part of it – getting ink onto paper. Technology is also changing physical printing, with short runs a lot more feasible due to digital printing.

3          Distribution channels
The rise of ecommerce has decimated high street book shops, and has concentrated power in the hands of online retailers. Whatever the consequences for the public, this makes the job of authors easier as they can promote their book and simply direct potential buyers to Amazon. If they route them through their own website they can even collect affiliate fees. No need to keep an enormous box of books in the spare room and then laboriously pack and post each one to fulfil an order.

4          Marketing
With this increased competition from more and more new titles, the job of an author is now more about marketing than ever before. As this piece in The Economist points out, authors have to be much savvier about the different ways of promoting their tome, from gruelling book tours to ensuring that it is stocked/sold in the right stores to make particular bestseller lists. A lot of this comes down to brand – if you have built up a following and people know who you are, it gives you a headstart in shifting copies. Hence the enormous number of ghost written celebrity biographies released every Christmas and the high sales of books ‘written’ by Katie Price.

Social media gives the perfect opportunity to develop that brand, before putting pen to paper. Promotion of Ann Hawkins and Ed Goodman’s excellent New Business: Next Steps, a guide to developing your fledgling business, was helped by the community and following the authors had previously built on social media. Cambridge Marketing College (CMC) is self-publishing academic books, based on its existing reputation, large numbers of alumni and the shrinking costs of digital printing. Due to its ongoing courses, CMC knows where there are gaps in the market for textbooks, and can therefore exploit them. The key points here are that the brand and following were created first, rather than trying to launch a book and create a buzz from scratch at the same time.

The changing market also begs the question – do we need publishers anymore? After all, the costs to publish a book, either physically or digitally, are much lower than ever before. This means that publishers need to up their game, adding value across the entire process and embracing digital techniques to help find and promote authors, crowdsource ideas and use technology to push down their costs. Otherwise smaller publishers without a defined niche risk being pushed aside by well-developed brands that can use technology to find gaps, develop the right content and market it professionally. The publishing market is changing rapidly – the only sure thing is that the number of new titles will continue to rise.

February 25, 2015 Posted by | Cambridge, Marketing, Social Media | , , , , , , , , , , | Leave a comment

Social networks – command and control centres for terrorists?

It wasn’t that long ago that the only spies in the public eye were James Bond and prominent Cold War defectors. But over recent years high-ranking intelligence chiefs have stepped out of the shadows to appear in public, write books and give interviews. They’ll be inviting the public to tour MI5 or the Pentagon next. It all seems a bit counter-intuitive as I’d have thought keeping a low profile was one of the key skills that intelligence agencies were looking for.

Some of the satellite dishes at GCHQ Bude, in ...

The latest spy to break cover is Robert Hannigan, the new head of GCHQ. In an interview with the Financial Times to mark starting in his new role he lambasted social networks such as Twitter, Facebook and WhatsApp, calling them “command-and-control networks for terrorists and criminals.” One of his key concerns is the spread of encryption techniques on common mobile phone operating systems – both Apple and Google have recently made encryption a standard feature that users can opt-out of rather than having to opt-in to use.

This is obviously good for privacy, but bad for those looking to monitor the activities of terrorist cells. In his article Hannigan issued a plea for more openness and collaboration between tech companies and the security services.

But in my opinion he’s overlooking two major factors. Firstly, demonising social media is a bit like criticising the telephone network for being used to plan a bank robbery. It is, as tech companies claim, an agnostic platform. If the police suspect a crime is being committed (or planned) there are processes in place to work with a social network to assist them in their enquiries. Normal people don’t see Facebook as a threat to their safety – though, given what some seem happy to share online, perhaps they should.

And secondly, and perhaps more importantly, there is a lack of trust in the security services. The revelations of Edward Snowden showed, as many suspected, that our online activities are being spied on. Recent revelations about police being able to access the telephone records of journalists without needing a warrant using Regulation of Investigatory Powers Act (RIPA) legislation just add to this.

The trouble with the whole debate about online privacy is that it is becoming increasingly polarised. On the one hand social networks support their ‘free’ business model by collecting and selling data on the interests of their users, allowing them to be targeted with ads. Then at the other end of the spectrum the security services are demanding more access to the very same data. The people in the middle are the users, the vast majority of whom have no idea of how much they are being tracked when they go about their business online. What is needed is more education so that it is clearer about how they can legitimately protect themselves online, rather than both sides scaremongering about the other. Terrorism is a threat to a free internet, but equally so is draconian, untargeted snooping by intelligence agencies and the erosion of user privacy by the networks that we rely on.

 

November 5, 2014 Posted by | Marketing, Social Media | , , , , , , , , , , | Leave a comment

Big Brother is manipulating you?

As anyone that has read George Orwell’s 1984 knows, the ability to rewrite history and manipulate information is at the heart of controlling behaviour. As communist Russia showed, people could simply be airbrushed from the official account and would vanish from the public consciousness. 1984

Of course, in the age of social media, the web, and 24 hour global media, this ability to control news should have disappeared. If a government blocks a site or a mobile phone network, there are ways around it that spread information quickly, bypassing attempted censorship.

However, I’d argue that the reverse has happened and that Big Brother can operate stealthily in two ways. Firstly, rumours can start and spread unchecked, with the majority of us not taking the time to get to the original source, instead believing something that has been retweeted or shared on Facebook. I’ve had people swear blind to me that a major incident took place ‘because I saw it on Facebook’ – though I can’t believe they’d be as credulous if a random stranger told them the same story down the pub. By the time the truth is out, immeasurable damage can be done – to a company’s brand or share price or a person’s reputation.

Secondly, we believe what our computers tell us, and act accordingly, particularly when it chimes with our own preconceptions. Essentially we think that the complex algorithms that control what appears on our screens are unbiased, rather than reflecting what the site owner has determined in some way.

This leaves us open to manipulation, whether by marketers trying to sell us things or more sinister experiments. Facebook received justified criticism for running an experiment where it tampered with the stories in people’s timelines, seeing what the impact would be on what users themselves wrote. Unsurprisingly the percentage of negative or positive posts had a direct link to the tone and language people used in their own posts.

Now dating site OKCupid has admitted that it experimented on its users. This included deliberately pairing up unsuitable couples and telling them that they were a perfect match to see what would happen. Now, there’s nothing wrong with a little serendipity, but deliberate meddling risks breaking the trust between a site and its users. Throwing in a wildcard of “here’s someone completely unlike you, but why not see what happens if you meet?” is one thing if it is advertised, but quite another if it is hidden behind the veil of computer processing.

Some might argue that this is just a next step in techniques such as Nudge, where choices are ordered in a way to drive particular outcomes. These are supposedly for the greater good. For example, if diners come to the salad bar first in a cafeteria they eat more healthy stuff and if you automatically enrol people in pensions, they tend not to take the opportunity to opt out. But I’d say it goes much further than this, and is about trust.

In many ways breaches of trust are similar to security breaches – something that the user relied upon unthinkingly has been removed, calling into question the entire relationship they have with a company. And like trust in any relationship, it is a time-consuming and difficult process to rebuild it.

So, anyone involved in marketing, media or technology does have a responsibility to be as open and transparent as they can be. At the very least there are legal safeguards (such as the Data Protection Act) that need to be obeyed, but I think companies need to go further than that. We live in a world where people want to have a genuine relationship with brands that they respect and trust, rather than the transactional, one-sided versions of the past. Therefore organisations need to think first about the consequences of experimenting on their users before playing Big Brother with their lives.

July 30, 2014 Posted by | Marketing, Social Media, Startup | , , , , , , , , | Leave a comment

Marketing by robots?

Technology has disrupted many industries, radically changing the roles of those that work in them. Thirty years ago, every medium or large organisation had a typing pool, with secretaries that took dictation and then typed letters, tippexing over any mistakes. Insurance was primarily sold face to face through brokers, while buying a CD involved a trip to the nearest HMV or Virgin Megastore.

Electronic typewriter - the final stage in typ...

Electronic typewriter – the final stage in typewriter development. A 1989 Canon Typestar 110 (Photo credit: Wikipedia)

It is now marketing’s turn to feel the impact of technology change. When I started in PR 20 years ago, technology essentially involved a desktop PC, a landline and a fax machine. I remember setting my heart on being promoted in order to ‘earn’ a work mobile phone and the excitement when internet access and email arrived. Things have changed a great deal, but essentially by simply automating existing processes. Rather than physically posting press releases to journalists, PRs now send an email, and marketing campaigns are now integrated and include digital channels. And you could argue that these changes have benefited PR and marketing – the sector is larger than it was, with more senior level practitioners.

However, digital business as usual is no longer enough. Marketing is now being transformed by technology, with those working in it enabled by a whole range of new tools and abilities that completely change how the entire industry operates. This is being driven by three key trends – the rise of Big Data, social media, and improved, end-to-end measurement tools.

1. Big Data – beyond the hype
We live in a world where data is being created an astonishing rate. And much of this data is personal information created on social media and consequently of interest to marketers. You can select target audiences to advertise to using the most narrow of parameters – if you want to reach one armed female ferret fanciers in Altrincham it is easy to do. But to make Big Data work for marketing, you need to learn technical and real-time analytic skills that can be at odds with the traditional annual or six monthly campaign-based approach that many people were brought up on. You also need flexibility, a desire to experiment to see what works, a willingness to learn from mistakes and a focus on constantly adapting and improving what you do.

2. Social Media – the balance has shifted
The relationship between marketers and consumers used to be balanced firmly in favour of corporate suits. Campaigns were launched at their target markets, and while there was some market testing, it was normally late in the process. Social media changes all that – consumers have the chance to have their opinions heard by a global audience instantly, uncontrolled by marketing organisations. The latest example of this is the Comcast case, where a call to cancel an internet connection degenerated into the customer service agent berating the consumer for having the temerity to try and leave. Over 3.5 million people listened to the customer’s recording of the call in just a few days. Marketers have lost control of the conversation.

3. You can measure everything
One of the traditional issues with PR used to be that it was difficult to measure. At a simplistic level you could count clippings, or even assign them a monetary value based on advertising rates, but these were crude and didn’t link to other marketing disciplines. Now you can measure everything, seeing exactly what a prospect has viewed on the way to a purchase and use Big Data algorithms to weight the relative impact of every contact on the eventual sale. Software enables you to link different channels seamlessly, so in terms of PR and social media you could see how individual articles or tweets have moved the customer journey forward.

So, some of the skills that marketing people took for granted as useful – empathy, the ability to schmooze and being good on the phone/in meetings – are no longer enough. You need to be able to use technology as a lever to better understand customers in a scalable, real-time way, and have the strategic skills to create content that will best reach them. For a traditional industry such as marketing this does mean changing how people operate – which can be uncomfortable and even threatening to experienced marketers. However the prize is worth fighting for. Marketers have the chance to not only prove the value of what they do, but increase their own standing within their organisations by taking a more strategic role. All they need is an open mind and a desire to embrace their more analytic and technical sides.

July 23, 2014 Posted by | Marketing | , , , , , , , , , , , | 1 Comment

The first social media World Cup?

With the World Cup almost upon us, we’re in the midst of a slew of big budget ad campaigns, coupled with unrestrained hype about the potential prospects of England making it further than the group stages. And of course we have the obligatory ‘will the stadia be ready?’ and ‘FIFA is corrupt’ stories on the front page of most newspapers.

English: FIFA World Cup Trophy Italiano: Trofe...

With its global audience, the World Cup has always been a magnet for brands, something that has swelled FIFA’s coffers. Obviously you don’t need to be an official sponsor to jump on the bandwagon (provided you are careful you don’t infringe copyright). For example, bookmaker Paddy Power has already come up with a (for them) remarkably restrained campaign, commissioning Stephen Hawking to look at the factors necessary for England to win the tournament. Just avoid penalties – as the renowned scientist pointed out when it came to shoot-outs “England couldn’t hit a cow’s arse with a banjo.”

This should be the first real social media World Cup, with traditional broadcasting sharing the stage with the likes of Twitter, Facebook and YouTube. As the marketing focus has shifted online, and more towards real-time activities, it does mean the playing field has levelled. It doesn’t quite let Accrington Stanley take on Brazil, but it offers a better opportunity for non-sponsors to get involved and engage with fans. Good, creative, well-executed campaigns don’t necessarily require enormous budgets, but do need brands to understand social media influencers and reach the right people if they are going to succeed.

Looking at social media, YouTube has been the early front runner, as brands increasingly put their video adverts on the site, either in addition to big budget TV slots or as an alternative for smaller brands. Castrol’s Footkhana ad, featuring Brazilian footballer Neymar and rally driver Ken Block has already had over 15 million views on YouTube, a figure that is bound to increase as the tournament nears. Nike’s ad, featuring Cristiano Ronaldo, was seen online by 78 million people in four days – before it even went on TV.

When we get to the matches themselves, expect a flurry of activity as brands try and embed themselves into second screen conversations. Facebook estimates that 500m of its 1.28 billion users are football fans, while the 2012 Champion’s League final generated 16.5 million total tweets. Social media has already become a major part of big sporting events – and the World Cup will demonstrate this. It gives non-sponsors a chance to muscle in on the action, but is going to require a combination of good planning, quick reactions and genuinely engaging content if they are going to actually reach the right audience. Competition will be fierce – as well as brands, pundits, media organisations and the general public will all be looking to have their say, so expect Twitter records to be broken.

In essence there are three competitions going on simultaneously – on the pitch, between brands and also between the social media networks as they look to monetise their members and wrest advertising and marketing budgets from traditional channels. All of these promise to be fascinating contests – however far England actually get.

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June 4, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , , , , , | Leave a comment

Time to hit mute on Twitter?

twitter fail image

Twitter is currently in a bit of a pickle. Since it floated on NASDAQ its stock has been falling, culminating in a drop of 10% in after hours trading when it recently announced its Q1 results. The reason for the beating? A combination of slowing growth in user numbers, a trading loss of $132 million, and the ability for staff and early investors to sell their shares for the first time.

But it is important to put things in context. User growth did slow, but Twitter still added 25% more people to its network, bringing total numbers up to 255 million. And it actually made a modest profit by some accounting standards (and certainly improved from last quarter’s $511 million loss). The company is still worth over $24 billion – about the same as breakfast cereal maker Kellogg’s for example, and a lot more than LinkedIn.

Essentially sentiment has turned against the microblogging site, with investors disappointed that it isn’t growing or adding new services in the same way as Facebook. The issue is a classic one of people expecting too much and then punishing a company for not delivering what they dreamt of.

Twitter is really hamstrung by the simplicity of its service. You go on, give a 140 character update on what you think is interesting, see what other people are saying and have a conversation or two. Yes, you can share other content, such as video and photos, but as Twitter is finding it is difficult to monetise conversations, based on the limited information it holds on users compared to the likes (or should that be Likes?) of Facebook. So any new features are correspondingly limited – you can now mute people that you still want to follow, but don’t actually want to listen to (how very polite!).

There are interesting things happening on Twitter – Amazon is experimenting with the ability to add items to your shopping basket through a tweet, for example. Where it is really succeeding is in becoming the mainstay of live interaction around big events, from football matches to breaking news stories or TV shows. 5.3 million tweets were sent around the Eurovision song contest on Saturday night – a new record for a non-sporting event. And more and more companies are using the channel to give customer service support, both in terms of spotting aggrieved customers and offering a faster alternative to email.

The point is, anyone that bought Twitter stock thinking they’d got the new Facebook was, frankly, delusional. But it is time for the social network to be a bit more adventurous and start thinking outside the 140 character box. In the same way that Google is built on capturing and analysing billions of pieces of user data, Twitter needs to better understand its members and actually monetise them more effectively. I appreciate that this sounds a bit mercenary for social media purists, but as a quoted company Twitter needs to spread its wings and fly. E-commerce is one area to look at, but how about creating private twitter feeds for individual companies, enabling staff to share their thoughts in real-time, or providing ready made monitoring packages for TV shows, celebrities or organisations. Perhaps it should buy another, complementary, network such as Pinterest. It could even look at creating paid-for subscription feeds, such as stock prices or business news from the likes of the FT or The Economist. The more you think about it, Twitter is no turkey – but what it needs is to both innovate and show the market that it coming up with cool new stuff if it isn’t to go the same way as MySpace or countless others…………

 

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May 14, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , | Leave a comment

Generating a network effect – why WhatsApp is worth $19 billion

As I’ve said before, the technical side of creating a new social network is relatively easy – and nowadays with cloud computing you have fast, cost-effective access to the resources you need to scale it in line with demand.

Diagram showing the network effect in a few si...

But how do you create the demand – for your social network or any other service in today’s complex and fast-moving world? Essentially you rely on the network effect – the fact that the more people use a service, the more valuable it becomes to each user. A classic example is the telephone. If one person is connected, it is worthless, but add more users and the positive effects increase dramatically – you actually have someone to call. It can also drive lock-in – if 80% of businesses use Microsoft Office there are compatibility issues for those that don’t, but who want to share documents with them.

Social networks are a classic example of the network effect in action – the bigger Facebook gets, the more people are on it who you know and supposedly want to communicate with. WhatsApp is another. It has built a base of 450 million users – 70% of whom are active on a daily basis. And as it allows free texts to be sent between users (and doesn’t cost to join for the first year), why wouldn’t you sign up to message your friends? No wonder it is predicted to hit the billion user mark in the relatively near future.

So how do you create the network effect and catapult your startup into the $19 billion bracket? There are six things I think are necessary

1              Word of Mouth
Obviously people have to know about your network or service, but traditional PR and marketing can only take you so far. What you need is people to recommend it to their friends, so start by researching and targeting the nodes of networks (i.e. those with lots of connections). If they join then their followers will as well. Approach these people and maybe even make them brand ambassadors to get them onside.

2              It has to be different
In open markets there is no point trying to simply copy what is already out there – if people are already using a service, the alternative has to be different or substantially better, if they are going to join. What issues/problems do people have that you can solve? In the case of WhatsApp it is removing the cost of sending text messages, so there is a clear advantage of moving to the service.

3              Make it easy to use (and free)
An obvious one, but if people log on and have to navigate through a maze of functions when they join, they are going to be put off. From registration to ongoing use, make things simple for people. And you have to understand and appeal to a mainstream audience – test it out on real people, rather than early adopters and fellow geeks. An intuitive user experience and comprehensive online support, including video and how to guides are a must if you are to grow. Put it where people will use it – on their mobile devices as well as PCs. And the basic package has to be free if you want to recruit major numbers of people.

4              Make it compelling
Just getting people to join is the easy part – network effect relies on them actively using the service. LinkedIn had this problem a few years back. Everyone had joined, but no-one was logging on, unless they were actively looking for a job. It changed this by adding in compelling content that aims to drive you back to the site – from the thoughts of business leaders to seeing what your peers are doing. You need to create reasons that drive people back to your site on a daily or even more frequent basis if you are going to build a solid user base. 

5              Think global from the start
When it comes to tech and the web, you need to think global. Does your proposition work in Delhi as well as Derby? The wider the target market, the bigger the potential user base, provided you make it appealing to a worldwide audience. Even if your site is initially just in English, the user experience has to be understandable by non-native speakers. As things grow you should quickly add other languages, dependent on demand.

6              Keep evolving
Nothing stands still – since its acquisition, CEO Jan Koum has announced that WhatsApp will offer voice calls on its platform, putting it in direct competition with Skype and traditional telecoms companies. You need to add new services and functions to both keep momentum going, ensure users return regularly and to recruit new ones.

The success of WhatsApp demonstrates it is less about the technology, and more about generating network effect if you want to attract a lucrative exit. Is it worth $19 billion? If it can continue its growth, introduce new paying services and bolster Facebook’s own platform it might just be.

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February 26, 2014 Posted by | Marketing, PR, Social Media, Startup | , , , , , , , , , | Leave a comment

10 changes that Facebook has made in ten years

This month Facebook celebrates its tenth birthday, having come a long way from Mark Zuckerberg’s Harvard dorm room in 2004. Hitting 1.23 billion active users and 2013 revenues of $7.87bn points to an astonishing growth in just a decade – though several researchers have tried to spoil the party by pointing out that teenagers have been deserting the social network in favour of cooler locations such as WhatsApp and SnapChat. On the flipside there’s been an 80% growth in those over 55 joining up – and from an advertiser’s point of view, which is the demographic with most money?

Facebook logo Español: Logotipo de Facebook Fr...

As the parent of a ten year old, albeit one that hasn’t delivered any revenues yet, it is amazing to see the impact that the social network has brought, not just online, but to the world around us. This is particularly true when it comes to marketing – ten years ago digital marketing essentially meant creating a website, SEO or sending out emails, rather than the relatively sophisticated profiling that is now possible through Facebook.

So here’s my top ten things that Facebook has changed:

1              Our language has evolved
Ten years ago we liked things. Now we Like them, and friend and unfriend people in the real world, as well as online. Poking publically is still frowned upon though. The language of Facebook has added and amended written and spoken English, and made it into the Oxford English Dictionary.

2              Marketers have traded control for access
If you told a marketer ten years ago that they’d move from investing their budget in their own websites to fitting their content inside the constraints of a presence on a third party network they’d have laughed at you. But essentially that is what Facebook has done – consumer marketers feel they have to follow their target audiences onto the site and interact with them, if they are to drive engagement.

3              Consumers are now in charge
The relationship between companies and consumers used to be one way and top down. The very word consumer conjured up a vision of passive purchasers lapping up whatever was marketed to them without complaint. Social networks have turned this on its head. Got a complaint? Disagree with what a company is doing? Facebook (and, of course, Twitter) provides you with a megaphone for your comments and can reach a global audience within seconds. Brands no longer have total control – as my ex-colleagues Steve Earl and Stephen Waddington have pointed out we’re now in an era of #brandvandals, that have the means and inclination to undermine corporate reputations overnight.

4              Everything happens faster
This isn’t just because I’m old, but we’ve moved from 24 hour rolling news to second by second and minute by minute activity. Move away from your computer for a tea break and you’ll be behind the curve and out of the loop. The constant need to update your status, post what you are doing and react to other people doing the same does give immediate insight, but is it at the expense of longer term perspective?

5              You cast a longer digital shadow
Ten years ago there wouldn’t be much information available online on most people. Now people live on Facebook, sharing their most intimate moments without a second thought. But unlike the offline world, this information doesn’t disappear but remains available forever. So be careful what you post as a teenager, as it may come back to haunt you when you’re Prime Minister

6              News has changed
How we consume news – and how it is collected and disseminated – has evolved beyond all recognition. Facebook profiles are the first place that journalists look for information or reaction to events. Much of our news is shared or recommended by friends rather than genuinely found through our own efforts. Consequently bite-size stories have risen up the agenda, along with a focus on cute kittens and addictive but unprovable gossip.


7              Distance is less important
It used to be that your closest friends were those you saw every day, even if the main thing you had in common was location. But now you can hang out with people you share interests with, wherever they are scattered across the globe. For many people the main focus of their social lives is Facebook, not the telephone or face to face communication any more.

8              Celebrity hasn’t gone away
Social media has allowed celebrities, from the Queen to Justin Bieber, to share their lives and build a direct relationship with an audience, unconstrained by the press. But this comes as a price – you need to actually talk to your fans and engage, rather than shutting yourself away, surrounded by minders.

9              We’re more open
Perhaps too open judging by what many people post. But the stereotype of shy and retiring, emotionally awkward Britons has been completely destroyed by the advent of Facebook. There’s no limit to what people think is shareable or that they believe their friends will find interesting………….

10           We’re beginning to grow up
Our attitude to how our private data is mined and used is changing. When Facebook began, few were bothered about what happened to their personal information – but that has changed as we’ve grown savvier about what it is worth. The next decade will see a fascinating struggle between Facebook (and marketers) and users, as each side tries to shift the needle on privacy.

 

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February 5, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , | Leave a comment

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