i [love] marketing.

Real-time commerce is retail's next frontier

Moda Operandi is something of a digital fashion forerunner. First, it allowed its customers to shop runaway items only days after the show. Now, it takes the runway-sales cycle up a notch, with its new mobile app that allows fashion-obsessed to “yay” or “nay” the runaway looks in real time. Once the “yay” looks become available for sale couple of days later, you are of course the first to know. This is a great example of putting together content, commerce and game mechanics in one. 

Labor of love gets rewarded by your love: send a message to the person who made your food

Oh god. This is probably the last thing that already overstimulated Brooklyn moms need right now: an ability to message the farmers that harvested the ingredients of their carefully selected, uber-local, beyond organic meals. Yet, that's what they have, thanks to Cisse Trading Co. The company prints QR codes on its chocolate deserts and cocoa drinks that allow customers to post a note to farmers whose labor created the ingredients. Once users scan the QR code, they are taken to the company's Facebook page where they can leave a note for the wonderful farmers that provided for us.

While this is, personally, a bit of an overkill for me, I can totally see giants like Kraft jumping on this trend. After all, brands are all about sustainability and transparency these days, might as well work really good for them. Food companies should add this to their branding playbook.

"The goal is to become HBO faster than HBO can become us"

Once digital brands scale enough, their cease to be disruptors and become a full-blown competitors to incumbents in the market they are operating. Their strategy revolves around the definition of who they are competing with. Having clarity about the key competitor protects digital entrants against a) being copied by this competitor and b) being acquired by it. 

The quote below is from Netflix's "Long Term View":

“The network that we think is likely to be our biggest long-term competitor-for-content is HBO. In the USA for example, HBO recently won long-term exclusive domestic movie output deals with Universal and Fox. HBO bids against us on many original content projects though is not currently a bidder against us for prior-season television from other networks”.

Netflix is already on it, but AirBnB, Warby Parker, Uber, Spotify and others should take note: Who are you competing against? Who is your absolutely key competitor?

*The above quote is by Ted Sarandos, Chief Content Officer at Netflix

Pinterest gets a cyborg-like upgrade: Rich Pins will blow your mind

There are article pins, product pins, place pins, recipe pins and movie pins. And all of them contain information that is just what you are looking for. Retailers, hotels, publishers, CPG brands are somewhere rubbing their hands in delight. This is contextual advertising at its best, mixed with a heavy dollop of utility. The sexiest of them all are product pins, clearly, as they are the perfect outlet for relevant product information: price, availability, shopping and, of course, the opportunity to shop. And all of this without ever leaving the Pinterest universe. Make no mistake: retailers benefit plenty - once user decided to buy a product, the rest of the transaction is completed on the retailer website. The bottom of the funnel is the same - it's its top that has gotten more complex, and for the better.

Brands are cool, it's branding that sucks

What are brands good for? The most recent incarnation of this question comes from the startup world. In the event they are successful (and 3 out of 4 are not), startups excell in their products. But what about the story, or the narrative, around these products? That's where startups fall short, at least according to the popular opinion. 

And then, there's this. Most people around the world would not care if "more than 73% of brands disappeared tomorrow," says Havas Media study. In Europe and the US, the figure is even higher, at 92%. Only 20% of brands worldwide make "a significant, positive effect on people's well-being."  

So which one is it going to be? If startups invest their brainpower and money in building a brand around their products, will they reach a point where they get to struggle to remain meaningful?

This scenario is not every likely. The very core of being meaningful is baked in the startups' core. Their products either add value/make people's lives better or simply disappear from the public view. Design economy made sure of it. A startup brand is a simple answer to the question of how this company help people lead easier, more fulfilled, more sustainable lives. It's the "how" that is a startup's purpose and a reason to exist in the world. 

The 20th century brands lack this "how." Driven by science and tech innovation, and not by design, they had to invent their "how." They then poured marketing, communications and PR into making their invention believable. But, offering an actual, tangible proof that goes beyond accumulating profits is proven to be increasingly difficult (see above). If the meaning isn't already the core of a brand, people will see through it.

But. The real challenge here is not one of the brand, actually. It's the challenge of branding. Our branding manuals are out of date. Marketing, communication and PR are not the most productive way to tell the story about our products, to convey the purpose of our company, or to provide rational of what we bring to the world. Just look at what Uber is doing. Look what AirBnB is doing. Look at Net-a-Porter. Look at Amazon.

Brands are useful, no doubt. They provide focus, differentiation, and a filter for everything that comes out of a company, be it a product or a social media update.

It's just that branding sucks. 

 

Digital design is behavioral economics made tangible

Behavioral Economics is "about helping people to avoid making a decision that they themselves would consider a mistake" and "…the most interesting and innovative tools are those that make it easier for people to do what they already want to do — to realize their own good intentions."

Studying behavioral economics helps us understand the gap between intention and action. Our intention can be to eat more healthily, to exercise more, to save more money, to be nicer to people - and the learnings and tools of behavioral economics help us stick to this plan. It helps us stick to something, because it understands that we are highly influenced by context of our decision-making; and it helps us because it offers a model for this decision making that enriches economic models with human psychology.

And that's where digital products, from running trackers to commerce websites, fit in.

Have a look at this article about the misconceptions about behavioral economics. 

"Our Website is Our Flagship Store" or, Warby Parker does it again

Warby Parker does it again. More specifically, its founder Jeff Raider, does it. Yesterday, he opened The Corner Shop, described as the "modern neighborhood barber," over at NYC's MacDougal street. The shop offers haircutting and shaving services along with plethora of locally sourced products like pajamas, toolboxes, notebookes and other things needed by a modern man who likes to be well-groomed.

The Corner Shop is a real-world embodiment of an e-commerce site named Harry's, where one can buy everything mentioned above. The Shop aims to offer the full grooming experience that Harry's hopes to become synonymous with. To get there, it adheres to the same principles of social responsibility and locally produced, artisanal products. The Corner Shop is a destination where one can not only buy products, but learn from master craftsmen how to use them, too.

This model, "build online, then build offline" seems to be working great. But the core of Warby Parker's, and now Harry's, innovation isn't only this model. It is the ability to achieve wide market reach while cutting out the pricey middlemen - be it resellers, wholesellers or expensive mass-market shaving gadgetry - from its value chain. Failing eyesight is a simple need. Shaving is a simple job. Knowing how to do it well shouldn't be expensive, only fun.

A party to celebrate what you already own

Patagoria remains consistent with its focus on sustainability. Thoroughly aligned with the values of its customers, Patagonia has already unleashed their Common Threads Initiative (an eBay program where Patagonia customers can sell their Patagonia stuff) and number of ads advising against conspicuous consumption.

This year, from Patagonia comes with Worn Wear initiative, launched just before the notorious Black Friday. The title of the campaign is "The Stories We Wear," which is meant to remind us that clothes we already own become only more valuable with time, as they become part of the narrative of our life.

The campaign is taking place in 14 US cities (and at two places in New York City) and features a movie "Worn Wear," a repair clinic, limited-edition beer, life music and food.

Sounds like a wonderful party.

Wish List Granted, a Kistarter-like idea from Peter Bengtsson

With WishList Granted, your friends can now contribute to things you really, really want for Christmas. It's like Kickstarter, but for Christmas gifts. This is wonderful - and it would be even more wonderful if brands partnered with Amazon to make sure economically disadvantaged people get their wishes fulfilled. Or, if we could do the same thing we would do for our friends to some kid who needs it more.

Amazon, get on it!

Made by Peter Bengtsson.

Saks Fifth Avenue brings its holiday display to your inbox

Saks Fifth Avenue is pretty famous to NYC visitors for its holiday window display. So famous, in fact, that there are crowds lining up to see it and that its unveiling is an event. This year, Saks decided to bring its window display to its customers. This premium department store created a video of the holiday display launch moment and the full program (while I am not a fan of this sort of entertainment, some parts of it are pretty good). Some parts of the entire video-launches-in-another-pop-up experience are definitely clunky, but the idea of bringing a small piece of luxury to consumers is valid. Smart part is adding product recommendations together with the video, so inspired customers can turn to transaction immediately. A great example of content & commerce combo.

See the video here.

Utility wins. Utility always wins.

GAP has recently unveiled its "Reserve" program, allowing shoppers to place a claim on a piece of clothing online, and pick it up in store. Right now, the program is in its pilot stage, with only selected stores participating. Once it becomes a standard practice, however, it will probably prove to be a successful way to counter the ever-growing practice of showrooming.

There is a ton of other benefits, too. The program reduces the risk of online shopping, which is still a factor in online purchases, despite numerous product exploration tools. Users can simply try on their selected item at a nearby store. The program also drives shoppers to store, where they will continue browsing, and very likely, add items to their purchase. Finally, there is a big element of exclusivity and good customer service. The "Reserve" program, above all, makes things more seamless for the user - ensuring their brand affinity and loyalty.

I find it interesting that best innovation in retail comes from mass retailers (think H&M and Target collaborations, Walmart's Lab, Zara's monthly catch-it-or-its-gone trends, or Macy's recent introduction of Shopkick) vs. premium and luxury ones. It's the matter of incentives. But, the more affluent people have, the more money's to be made on the less affluent ones. There's more of them, too, anyway.

TOMS keeps giving, and giving some more

 

TOMS is a company based on a simple exchange: buy a pair of this brand's shoes or glasses, and the company gives a pair of the same to kids who need them. 

 

For a long time, TOMS was an example of a sustainable brand that combines a viable business model with social consciousness. The brand itself accumulated significant equity in the process: wearing a pair of TOMS shoes means that you are a responsible, caring consumer who puts benefits of others over their own vanity.

 

Now, TOMS upped the ante on giving back. The brand recently launched TOMS Marketplace, a  platform for social entrepreneours to promote and sell their environmentally conscious, sustainable goods. Yes, this effectively means that a brand sells other brands under its turf.

 

The thread that makes this actually make sense is the unifying mission between the TOMS brand one one side and all those emerging entrepreneurs and the goods they are selling on the other. The more TOMS can unite other companies under its mission of giving, and the more  ways to give it can find, the stronger its own brand becomes. Simple.

 

As of now, TOMS Marketplace features about 200 products from 30 companies. Products range from jewelry to tech, home hoods and accessories. Best part is, one can search by the region, product, cause or brand. Check it out, each listing includes a story and the social impact of the company, and there are some cool product curations by TOMS founders, too.

Twitter, next digital commerce platform?

There's a new partnership in town. Twitter and Starbucks joined their forces to enable users to gift each other Starbucks coffee via tweets. Bestowing a $5 latte on someone has never been easier. One just needs to include @tweetacoffee and the recipient's Twitter handle in their tweet, and the above mentioned latte is on its way either through adding the gift amount to the Starbucks card or printing the eGift.

Twitter has already proven in its partnership with Amex that it can be a quite robust digital commerce platform. Starbucks partnership takes this premise further. It is not hard to imagine how Twitter can evolve from current deals & discounts to gifting and to actual monetary exchanges. The critical advantage that Twitter has as a platform is a load of existing social relationships and content, both of which are highly coveted context for online transactions. 

The mechanism seems simple enough, and it will only get simpler. Neither technology nor user behaviors are a barrier here; it's the retailers that are slow-moving.

Tokyo, Italy

 

Italy is famous for many things, but high-speed Internet isn't one of them. To believe that fast Internet is possible in Italy, it may actually need imagining that you are somewhere else. And that's precisely what Fastweb, Italian telecom company has done. To show how their speedy broadband compares to that of Tokyo, it turned the entire Milan train stop into Tokyo's Shibuya. In this elaborate stunt, the station became equipped with everything from Japanese newspaper kiosks, teenagers and screens streaming Japanese programming. The shock of Italians stepping out of train into this faux-Shibuya is probably going to commensurate with their surprise of having the faster web.

Lady Gaga does engagement planning right

Lady Gaga has proven herself to be an excellent engagement planner. To promote her upcoming album, ARTPOP, the pop-icon turned to her most abundant resource: her fans.

Carefully cultivated over years, Lady Gaga's relationship with her fans is notorious. She affectionately calls them Little Monsters and often personally responds to their notes. This summer, the fans took the promotional matters into their own hands. 

This meant everything from crafting album flyers to a YouTube show called Radio ARTPOP, which revolved around discussing the upcoming album.

And that where her majesty herself comes in. Tapping into 1% of her audience (which measures 40 million Twitter fans and 60 million Facebook fans), Lady Gaga employed the "Accidental Influentials" approach based on "influencing easily influenced individuals who influence other easily influenced people."

Namely, she did what a smart engagement planner would recommend. She invited moderators of her Gaga Daily website "into the brand," i.e. to hang out with her closest entourage; she used UGC platform to spread the word, by leaking parts of her album on Radio ARTPOP and promoting the channel on Twitter; and she promised the first sneak-peek to a selected few of her final selection of songs to be included in the ARTPOP album.

All of this comes from the first truth of engagement planning: know thy audience. She nailed it.

KITTENS!!

I Can Haz UberKITTENS is a pretty amazing idea on so many levels. To celebrate National Cat Day (and to drive awareness and downloads of its app, cough cough), Uber partnered with Cheezburger site to deliver kittens to your doorstep. For 15 minutes, the kittens are yours to cuddle and play with. Then off the Uber driver goes to the next destination.

A pretty neat idea that benefits both the Uber, as it promotes its service, and forCheezburger network, an online content platform that entered the Internet Hall of Fame for its cat memes of unlimited variety.

The promo was priced at $20 and the money was donated to NYC, SF and Seattle's animal shelters. The kittens were also available for adoption, if you were feeling inspired.

Smart & business savvy PR stunt.

Designing for sharing economy as the new creative frontier

The role of ad creatives may change quite a lot, and quite soon (and that's a good thing). With sharing economy churning out success stories like AirBnB, Uber, Rent My Ride, Barklay's Ring or Asos Marketplace, the creative challenge is going to revolve less around the needs and habits of individual consumer and more around creating something that facilitates creating new value out of existing resources in groups. The new creative tasks can be coming up with an infrastucture, motivation, and reward for sharing, collaborating or contributing. The interesting part? Designing for the social dynamics revolving around abundant supply, unmet demand and the possible links between the two.

The graph found here.

This store shelf is stalking you.

The rumor has it that shelves can now track age and gender of passing customers. That is, in the global supermarket Mondelez they can, thanks to Microsoft Kinect. Sensors placed on the shelves stacked with groceries will track who’s looking at the goods, how old they are, and what’s their gender. The data is intended for marketing purposes, like tailoring specific messages to the target demographic or offering real-time utility as Hellmann’s mayo did in Brazil. Hellman’s used data to assemble recipes on the fly for the customers who put Hellmann’s mayo in their cart. The utility of data doesn’t have to stop there, though: it can potentially be a really good source of research on human decision-making and the influence of the context on the way we choose, making marketing both more efficient for the brands and more useful to consumers.

Further reading: Future of Retail by FactCo Labs

Barklays Wants Your Bike Ready to Roam

It looks like tomorrow's going to be the last day of Barklays Bike Clinics, pop-up bike repair stores strategically placed around busy roads of London. Sponsored by Barklay's bank, these temporary repair shops offer free check-ups, tune-ups and safety info to bikers. Apparently, after running a survey and crunching some numbers, Barklays discovered that 57% of Londoners are riding bikes unfit to be on the road and that 18% cycle in dark without bike lights (um, guilty as charged). Behind the entire Bike Clinics initiative is the idea to get more people to cycle, and to do so safely.

Where you at, Citibank?

Out with the ads, in with the content

Denny’s and Percolate created something extraordinary. Denny’s is better known as the America’s Diner for the past half of the century. Percolate is better knowns as the content publishing platform for brands. Combine the two and you get an impressive 680% increase of consumer social engagement with 55% less time invested.

The social content campaign created in collaboration with Percolate was a result of Denny’s recognition of social media as an increasingly important consumer touchpoint for the brand. The challenge that followed this realization was equally big: build and expand brand’s digital presence without diluting its widely known and beloved “classic diner feel.”

By mapping Denny’s interests, visual guidelines and key events, Percolate managed to distill this brand’s social DNA that informed all further content selection and distribution decisions. The results are clearly impressive. You can read more here.

 

What business is AirBnB in?

Rather than defining themselves as part of the struggling-to-innovate hospitality industry, AirBnB smartly embraced the dynamic of digital economy that revolves around finding a new way to connect abundant supply with the underserved demand and to build a business around this connection. AirBnB’s laser-sharp focus on making accommodation accessible to global travelers anywhere now allows it to explore monetizable adjacent lines of its business, without diluting its original business model. The latest initiative of this mold is to make homes of notable LA people open to anyone with enough of healthy dose of curiosity and affection for design. In partnership with Sonos and a few other LA-based brands, AirBnB created an immersive series of events named Hello LA that make the most interesting people, places and experiences in LA accessible and bookable through AirBnB. Spending a night at the home of James Franco, anyone? (Let’s just hope the night doesn’t pan out as in “This is the End” movie…) Those who are into this kind of thing can submit a love letter to LA through Facebook, or enter to win an overnight stay via pop-ups around the city of LA. As far as the market-building strategies go, this is a pretty smart one. 

Guest interview

I gave an interview to a French blog called Les Francs Publicitaires couple of moths back. It was a fun conversation, and my favorite question was to describe my job to Samuel's 9-year old brother. You don't know what you are really doing until you have to explain it to a child. 

Rendez-vous with Ana Andjelic from Les Francs Publicitaires on Vimeo.

 

Strategy Playbook: Designing Responsive Strategy for Creative Agencies

 

Strategy in creative agencies often isn’t taken seriously - and deservedly so. We aren’t doing it right. In a world that’s connected, open and interactive, strategy needs to be the same. Strategy isn't an isolated discipline or a tucked-away department that makes a cameo in the agency process by drafting a brand architecture or summarizing a competitive opportunity. It's a problem-solving approach and a methodology that can help companies grow. It can turn agencies into growth hackers for brands by pointing the way for their business in the emerging digital markets. To get into this value matchmaking game, we first need to expand what strategy (and strategists) must do.

Economics of value-based pricing

"One prominent feature of information goods is that they have large fixed costs of production, and small variable costs of reproduction. Cost-based pricing makes little sense in this context; value-based pricing is much more appropriate. Different consumer may have radically different values for a particular information good, so techniques for differential pricing become very important."*

It's no wonder that traditional marketing and advertising don't work in digital space. Customers' perceptions of value of a product/service and their expectations of the value they'll gain are completely unrelated with the cost of creating that product/service. Companies' value proposition thus needs to be correlated closely with consumers' value perception. This value perception is shaped by Google-led commoditization of products/services, transparency of pricing, and social information - to a greater (much greater) extent than advertising. Key to success? Staying close to customer's perceptions and expectations of value. That's the path to sustainability; everything else has a short shelf life, literally and figuratively.

* From here.

State of Digital Business in 2012

State of Digital Business 2012 from Ana Andjelic

 In lieu of end-of-the-year recap traditions, I assembled a little overview of brands' digital efforts through the prism of business growth. I wanted to see how brands are using digital to grow their businesses, and what strategies and methods they adopt. As you can expect, most brands are still heavily market-focused. Brands that focus on human needs and behaviors as a starting point in their sustainable growth strategy are still exceptions rather than a rule. Enjoy.

 

There's no good digital strategy without solid digital thinking

Digital Thinking from Ana Andjelic

 

The Fast Follower Advantage

"The Airbnbs of the world are business manuals for companies to learn from and apply to their businesses. Forget Six Sigmas and Five P's. In a volatile environment, it's more important to have the agility necessary for incremental growth, a laser user focus and ability to view business through a problem-solving perspective. As digital-first companies grow and move up the value chain, their definitions of quality and value become the norm. With no barriers of entry left, big companies have no choice but adopt them."

The rest of my Ad Age article is here. 

Digital Business Gameplan

Companies seem frustratingly slow in using digital for innovation. The problem is they invariably think of digital as a value-add to their existing business. They'd rather spend hundreds of thousands of dollars on their online "presence" than invest in figuring out how digital opens up their revenue streams and transforms their value chains. 

I drafted this table as a tool for brands to identify new value and growth opportunities in digital space. The four quadrants are, clockwise:

Addition: Making legacy business more valuable by using digital to add a new revenue stream to the core business. This means adding digital as a sales and marketing channel to brands' existing products/service marketing and sales. In this scenario, digital is considered as a value-add in the company's traditional value chain. Examples are Target, Walmart, Barnes&Noble e-commerce platforms.

Systems: Connecting products and services to create new value by assessing company's existing offerings and bundling them together via digital technology. Value that's created as the outcome is outside businesses' traditional value chain and counts as the new revenue source. Think Barnes&Noble Nook, American Express digital initiatives, Nike Fuelband.

Design: Customer-led business solutions are an incremental value-add as they make the existing products and services better from the end-user standpoint. They use laser user focus to serve their existing customers better and/or to overcome the current consumer barriers in the category. Examples are Patagonia, Simple.

Distruption: Disruptive solutions create a completely new value in the industry. Disruptive businesses have their own value chain, different from the one their industry's built around. Think AirBnB, Square.

Looking at this chart is clear that, more often than not, clients and agencies expect Disruption from digital, but are thinking of it only as Addition. 

What Marketers are Getting Wrong About Loyalty

I wrote an article for Fast Company. Have a look. 

Here's the presentation I gave at a SVA class last week

SVA presentation from Ana Andjelic

Digital Strategy Course on July 20th

I will be teaching again Digital Strategy Course on July 20th here in NYC. As always, the course will be super-practical, with participants coming out of it with a bunch of hopefully useful digital thinking and doing tools. Besides that, we'll cover coming up with KPIs and setting benchmarks of success. We'll also explore tools for collaboration between digital strategists and other disciplines in the organization. 

I am pretty excited as I planning to introduce my approach called Digital Thinking at this course. 

Do come!

What You Need to Know About Digital Marketing

 

Here is the presentation I've given at the amazing IdejaX conference this past weekend in Croatia. I was in the excellent company of other presenters, the audience was great, and the whole thing was a lot of fun. Below are the speaker's notes, as they may come in handy... Enjoy.

Slide 6: Temple Grandin says that she is a primarily visual thinker, and claims that words are her second language. She attributes her success as a livestock facility designer to her ability to recall detail, which is characteristic of her visual memory. Grandin compares her memory to full-length movies in her head that can be replayed at will, allowing her to notice small details. She is also able to view her memories using slightly different contexts by changing the positions of the lighting and shadows. Her insights into the minds of cattle has thought her to value the changes in details to which animals are particularly sensitive, and to use her visualization skills to design thoughtful and humane animal-handling equipment. While I know nothing about the cows, I am able to holistically approach the client challenge, and visualize the possible solutions.

Slide 7: Visual approach works great in digital, because it makes us think about solutions to clients’ problems in terms of systems and networks. It requires coming up with a more integrated approach that focuses on connections and relationships between brand and customers, communities, digital and physical, etc. We are challenged to simultaneously think of a creative idea and its execution, and to develop & evolve creative and strategy in parallel. This of course changes the nature of our agency process to become more non-linear, integrated, and interactive, and redefines how departments work together.

Slide 8: The way we often talk about digital world, we talk about it in terms of abstract disruption. The problem with talking about digital in connection to disruption is that is too massive, ephemeral, and hard to relate to. We end up talking about digital changes as if they have nothing - or little - to do with us and our work. They are viewed as something to talk & wonder about - but not something that we right now need to execute by.  

Slide 9: To me, these conversations about “digital future” are incredibly boring and repetitive.

Slide 10: Digital world emerged some 15 years ago, at least. That was when the disruption happened. Now we are living in the world where digital and non-digital are indistinguishable. The same way no one says “electric iron” or “electric fridge”, today digital retail is interchangeable with retail, digital sport with sport, digital tourism with tourism, digital cooking with cooking, etc. Our world is digital world.

Slide 11: I like talking and thinking about are specific macro-trends that are disrupting businesses and culture in very specific, tangible, and measurable ways. Only by focusing on particular inflection points and breaks in business and marketing, we can really use the insights about what/how digital world really changed the way the industries (cultural industry included) operates. If we understand dynamic of these macro-trends, we will be able to use it in our brand and marketing strategy, thus effectively keeping our brands competitive. 

Slide 12: Sharing economy revolves around having access to used and/or pre-owned goods. It’s based on a mutual trust between participants in a transaction, rather than the abstract market mechanism (price). It is a flexible system, as it nimbly provides supply based on the volume of demand through renting, trading, sharing, swapping, and bartering. Economic dynamic based on access removes the burden of ownership (costs of maintenance, storage, service, etc). At the same time, the access reshapes the markets in which brands compete in: they are competing not only with other marketers producing new goods and services but also with the all existing goods and services. For example, think AirBnb: it extends the hospitality/tourism markets to include all available rooms in the area (and not only hotel rooms). AirBnB effectively disrupts tourism industry by offering a cheaper, more convenient, more accessible and more fun version of hospitality service offerings.

Slide 13: We leave digital traces everywhere, from the moment we open the browser. Our likes, affinities, preferences, purchase habits and communication patterns are out there for all to see (and use). Aggregates of our individual behavioral patterns tell stories about wider social & cultural trends (think sharing, cooking, driving, running, shopping, etc). Brands, in particular, are rich repositories of all this data (just think big ecommerce platforms like Target, IKEA, JCrew, BestBuy or social shopping destinations like Svpply, Fab, Pinterest, etc). They can use all this wealth of data to tell a story about their customers, a wonderful, human, relevant story that can also be used as a bonus marketing message. This “consumer-based” story is a social object that’s easy to share, identify with, relate to and compare ourselves with (and that’s more interesting than any invented ad message).

 Slide 14: Social information today is overlapping with price and it provides a powerful social context for consumer decision-making. We can now “calculate” the worth of a product or service based on whether it’s green, popular, worn by a celebrity, based on fair trade practices - i.e. based on everything that’s important to us. This sort of information has always been attached to products, but the thing is that we weren’t able to see it. Digital now makes all this information visible - and allows us consider all sorts of information aside of price - and It helps us make better, more informed, more social purchasing decisions.

Slide 15: When thinking about social influence, the best is to think of a forest fire metaphor. Whether or not the fire spreads doesn’t depend so much on the kind of the fire, but more on the density of trees in the forest, of how dry the forrest is, whether it rains or not, how close the trees are to each other, etc. The same is with social influence online: rather than investing money in a few celebrities, we are much better off if we spend that same money on the large number of “accidental influentials” (Duncan Watts’ term). Back to the forest metaphor: lighting a fire on a lot of trees makes it much more easier for the whole forest to burn, than lighting just one big tree. As Buzzfeed, The Awl, The Onion, Cheezburger Network, etc. have shown, people do like to share. The best strategy is then to aggregate a lot of people who like to share vs. a few celebrities who don’t particularly like to share, but would do it for money. Duncan calls this situation targeting “easily influenced people who influence other easily influenced people.” Those kind of individuals (professional sharers :) make content & memes spread much faster and wider than any pre-planned “viral” campaign.

Slide 16: This one is my favorite, because it requires doing a bit of a detective work. I stole the idea of looking for contradictions, inversions, coincidences and oddities from an innovation theorist (forgot the name). Contradictions mean simultaneous happening of two things at odds with each other, indicating a transformation of a certain trend. Oddities refer to out-of-ordinary occurrences that make us search beneath the surface or a trend or pattern. Inversions refer to unseen-before reversal in a trend’s dynamics. Coincidences are about concurrent appearance of distant and unrelated trends or patterns. Here are a few examples: 

Contradictions: Millenials are 40% of the car market, but they are buying cars & driving less than any previous generation. Digital gadgets replaced cars as genY identity markers.

Oddities: Rapid growth of Instagram shows that this app is not only about taking photos and applying nostalgic filters. It’s about scratching some kind of storytelling itch among genY.

Inversions: There’s more than 40% of households in major American cities with just one occupant. This makes us accept urban tribes as a prevalent social unit.

 Coincidences: Economic crisis happens simultaneously with an incredibly lively economic activity happening in peer-to-peer markets. Safe to say that the established economic logic is under a quiet but inevitable transformation.

 Slide 17: The five macro-trends that I selected have the biggest impact on marketing: they bend its practices and create major inflection points in its processes and tools. These five trends are, more importantly, the inevitable starting point in digital marketing thinking: be it a campaign, a marketing strategy, a launch of a new product, a digital brand positioning or coming up with a brand purpose. Every single digital marketing venture should start from these macro-trends, because they define our approach to business challenges, consumer problems, competitive opportunity and/or brand positioning. Most importantly, using these trends as a starting point defines what digital marketing is: it’s not about the tools and tactics for execution - it is about detecting, understanding and tracking what’s going on because of digital and about building a brand around it. It’s this starting point that makes digital marketing unique and incredibly different from “traditional” marketing, which was obsessed, in a solipsistic manner, with using the brand, the category, and the product as its starting points. Digital marketing is not about media planning, engagement planning, communication strategy, and/or social media: it’s about the approach sensitive to macro-trends made possible by digital technology, and about devising a strategy that utilizes brands to amplify, recognize, or own these trends.

Slide 19: Digital marketing focuses on things that are enabled by, facilitated, spread, grow, etc. because of digital technologies and behaviors. Ask which economic and cultural trends & currents are made possible by/permitted/emerged/amplified due to digital technologies, and then start building brand strategy around it. 

Slide 20: The job of digital marketing, among other things, is to figure out new monetization opportunities for brands in the context of dynamic, consumer-driven, collaborative consumption markets. Making a cheaper version of a product/service is an option as it opens up the market to a whole new set of people (this is described in detail by Clayton Christensen in his “Innovator’s Dilemma”). Another version of the same approach, according to Aaron Shapiro, CEO of HUGE, is to make a product/service more convenient, or easier to use, or more fun. New monetization opportunities for brands should be based on all of the above, and focused on adding value to a selected consumer behavior/habit and/or responding to some need. Sharing economy in particular opens up new monetization opportunities for brands, because it forces them to explore: a) how to extend the product lifecycle, b) what unused distribution opportunities exist our there, and c) how to solve some customer’s problem. In the example above VW found a way to create brand affinity and promote its vehicles by wrapping a collaborative consumption-based system around them. It’s a test drive for everyone - when they need it and when it really makes a difference in their lives.

 Slide 21: Google insights for search, social listening tools, and digital ethnography tools give us insights into consumers’ habits, motivations, and expectations. They also reveal anomalies, oddities and atypical patterns that are signals that something interesting’s going on - that we should tap into. 

Slide 22: There are a few points to be made here: a) the most successful advertising today is native to its medium, meaning that it organically fits with the site content, layout, and with audience expectations for the site in question. In this way, we are using the site to create a powerful social context for advertising consumption; b) media today are not only what’s directed at people, but what exists between people (as Ian Schafer pointed out). Brand content needs to be sensitive to this dynamics: we should always ask whether our creative is/can become a social object; c) consumers rely on each other and brands for finding and discovering the best content. Most of cultural products are chosen by a small group of people who have a better taste than anyone else. Brands have an enormous potential to become part of this taste-making dynamic, by directing consumer attention towards specific content/products/etc. Ask: how can my brand help evolve consumers’ tastes by exposing them to the best content/information/lifestyle?

 Slide 23: There is a ton of interesting things happening outside the marketing and branding world. Those things are often way more interesting than anything a brand does. At the same time, brands can help these small, brewing currents at the edge of the culture or business achieve a mass scale and global prominence. By detecting an emerging trend at the periphery of some industry (think retail industry, in the example above), brands get to capture & own the trend and to amplify it to the level of a wider cultural conversation. Case in point: GAP combined a few brewing trends - fashion blogging, product remixing & scrapbooking, and personal fashion styling - under the umbrella of its GAP styld.by campaign, which asked fashion bloggers to remix GAP products with items from their own closet in order to express their personal style. This campaign is a win for a few reasons: Tumblr provides a natural environment for a fashion blog; GAP products live in a social context; it lends the brand legitimacy and reputation of stylists used in the campaign; it’s an easily shareable social object.

 Slide 24: Transparency can help brands to create a powerful social context that shapes consumers’ brand and product perceptions. Disclosing information about company culture, green practices, and operations turns them into marketing (think Zappos blogs, Patagonia product tracker, or Icebreaker barcode). It also turns their marketing upside down: it diverts consumers’ attention from a beautiful print ad or an emotional TV spot toward ubiquitous, easily accessible information about how brands products/services fare against competing products; how do they perform within a specific social or taste graph, or how they compare on fair-trade scale.

Slide 25: To put these macro-trends in context of marketing vs digital marketing, we need to understand where the “big switch” is happening.

Slide 26: Advertising is not enough. It’s also not effective enough in changing people’s behaviors. We need to move from making funny copy and commercial ad pieces towards approaching brands as taste-makers, editors, curators, publishers, and providers of value. To achieve this, we need to start from the context of consumers lives, and see how a brand can seamlessly insert itself into their habits, expectations, and behaviors. We need to ask: can we make a product/service cheaper? can we make it more fun? can we make it more convenient? can we become more useful and more entertaining? what problem are we solving for our customer?

Slide 27: Commercial art pieces can be beautiful to look at, they can be talked about, and they can win awards. What we need, as an industry, is to start thinking about creating social objects that will turn our creative solutions into memes, conversation pieces, etc. that will sky-rocket them into the domain of cultural conversation. ROI on social objects is measured in greater brand affinity, a wider exposure, more impressions, and ultimately more conversions. Social objects is how our customers communicate and relate to each other. They are things that take part or create a relationship between people - an invitation, a social gesture, a gift, a reward. People exchange social objects as a way of relating to each other - and we want our creative to become an inherent and seamless part of social relationships.

Slide 28: Demographic targeting is a great starting point in every strategy. Today, however, it’s not nearly a sufficient one. Social media brought into picture interest graphs, taste graphs, and most recently, spend graphs. All of these tell us a deeper story about consumers preferences, tastes, and decision-making processes than any demographic targeting ever would be able to. They reveal connections between diverse demographic groups that we wouldn’t otherwise realize, and they reveal patterns of social influence and taste-making that we need to take into account in developing our strategy and engagement plans. More often than not, the fastest and most effective way to reach our target is through their networks of influence: people who influence their tastes, interests, and shopping choices. Instead of being satisfied with the neat demographic groups, we need to ask the following: what interest/taste personas are we targeting? where can we find them? what do they do there? what are they influenced by? what social/taste/interest networks do they belong to? what do they talk about? what language they use when talking about our product/brand or category? how do they interact with brands and with each other?

Slide 29: Too often, our marketing efforts start from a product/service that a brand offers. The best brands - digital or otherwise - think in terms of relationships. They define  their brand purpose by capturing a specific behavior and/or relationship they want to own. Google’s purpose is organizing world’s information (and not search); Pepsi’s purpose is empowering communities (and not selling sugared water); Nike’s purpose revolves around running and making it better; Instagram’s purpose is to allow anyone to feel an emotional connection to photography (strangely enough, Kodak has this same purpose but it got list amid company’s rigid internal culture); Burberry’s purpose is to connect high and low culture that’s the essence of Britishness (Burberry has been worn by everyone from Queen to Sid Vicious). To succeed, brands need to ask themselves which behavior and relationship they want to build their purpose around.

Slide 30: In our industry, we are too often encouraged to think simple: to come up with a single insight, a single killer creative idea, a single course of our strategic action. Instead, we should start from the complexity of trends and patterns of consumers’ behaviors, and explore ways to amplify it them. The best way to win in today’s complex consumer markets is to recognize an emerging consumer need, a brewing trend, or an untapped distribution opportunity for our brands. Then, we should amplify it and own it. If consumers today are all about sharing, as in the car-sharing example above, we need to figure out the way how we can amplify this emerging trend and make it work for our car brand.

Slide 31: At the end, there are a few basic questions to help us kick-start our digital marketing effort. They can help us focus our thinking, inform our approach, and offer guidance for creating a winning marketing campaign - or at least one that is suitable for the digital world.

tool-based knowledge specialization sucks, behavior-based specialization doesn't

At this past SxSW, I was part of the panel talking about Social Media Strategy. My thoughts are on the slides 25-33. Enjoy.

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What is Digital Strategy and Why Agencies Need It?

A couple of Fridays ago, I thought a Digital Strategy Workshop together with Farrah and Ale. It was an all-around awesome experience: participants were smart and wonderfully engaged, my co-teachers were super-inspiring and insightful, and finally, we put together a really fun (and informative) presentation - a section of which I am including here. That's the part I presented, to kick the workshop off. 

Speakers' notes are below:

Slide 3: Every conversation about the topic, area, or practice starts with its definition. Well, one of the great strengths of digital planning is that we haven’t settled on a single definition. As it goes, if you ask 10 people what digital planning is, you will get at least 11 different answers. And that’s a good thing, because if Richard Buchanan is to be trusted, we know that we are alive. After all, all the great, revolutionary shifts in culture, science or society didn't have names at first - think postmodernism (hell, i still don't know how to define it), innovation, DNA research, etc. We always have to rely on what's already out there to define a new field, and more often than not, what's out there is not enough.

Slide 4:  At the same time, there is clearly a need for digital planning thinking and tools, otherwise there wouldn't be there workshop. From your own experience, you know that you are dealing with things that you didn't have to deal with before. Above all, you are dealing with the need to think about how to create value for both customers and clients. This means you need to think how to create a relationship between them that doesn't benefits clients only. A related question is how to make new forms of relationship between buyers and sellers work for us. To clarify this point, the very idea of who buyers and sellers are is different. Sellers are not only brands anymore as collaborative consumption and redistribution markets can attest. Just think AirBnb, Etsy, Getaround, Neighborgoods, etc. Group buying and flash sales are also an example. Speaking of group sales, we are dealing with interconnected individuals that share, review, comment, and are able to make or brake brand's reputation by introducing unprecedented transparency of information.

Slide 5: Case in point: Community and technology, in combination, reshape marketplaces by changing dynamics between supply and demand, buyers and sellers, consumers and products. They have the capacity to create new markets by focusing on the previously unaddressed segments - all of the above being examples.

Slide 6: Venturing into unaddressed segments has proven to be rewarding. We are not dealing with someone’s side project, but with the emerging industries.

Slide 7: Why is all of this important? All of the new value models change consumers' expectations and shape their habits. They expect from brands the same thing they have been tought to expect from online services and tools - immediacy, convenience, transparency, competitive offering. Above all, they expect to be in charge themselves.

Slide 8: Our job as digital strategists in this context is the following: create a plan for arranging elements in such a way as best to accomplish a particular purpose. First, I stole this definition from Charles Eames, who was talking about design when he said the above. Design analogy is especially convenient here, because if we are to be successful, we are to shape and format the digital environment. Also, design is not about end product, but it is a systematic process of identifying problems, and then researching, creating, testing, and implementing solutions. This is the second thing that's important - a problem solving approach. We address our clients through this problem-solving prism - every assignment has to be reformulated as a particular problem that the brand is focusing on - either it is the sales problem, the audience problem, or the brand perception problem. Lastly, talking about arranging elements leads us to systems approach, a system that connects people and technology, products and content, brands and services. 

Slide 9: The best digital campaigns have been built around the innovative connections between buyers and sellers that are characteristic of the new models of exchange. Pepsi Refresh project connected the brand with the community. New Balance teamed up with the long-distance runner (and a certified weirdo) Anton Krupicka, Uniqlo created Lucky Counter which combines group dynamics with people's desire for discounts, Lufthansa came up with utility, Burberry connected their brand to everyone with a trench, etc etc.

Slide 10: Often, we think that the client brief is about advertising or promotion, while we should be thinking about the brand or about the new ways to reach audience in digital space. What is brand's real problem? How to connect with audience in the digital space in order to solve it?

Slide 11: And now, onto practical stuff. First, start from the consumer. Here, we see a traditional advertising model of brand/product/category and consumer. Traditional (or brand) planners start every assignment from a competitive landscape, from thinking about the brand (what does it stand for? what's at its core?), the product (what are its benefits? what are the barriers to adoption?). Then they often look into surveys and numbers about the audience, and conduct focus groups to confirm their thesis. It's the thesis-support thesis model, as Noah reminded me the other day. And this is not wrong. Where digital strategists start from, in contrast, is a consumer. They are putting it at the center, as a starting point for framing a hypothesis, then they then test against brand, product and category insights. The benefit is seeing something that we have previously missed - instead of getting answers on our questions, we are letting consumers tell us what they want.  We are seeing the world through their eyes. And in order to do that, we have to reach a true understanding of their habits, culture, social context and their motivations space.

Slide 12: How do we reach that understanding? Well, we inquire: how do we think about the category? how do they talk about the brand? how do they perceive the product? Observing, monitoring and listening to customers can often reveal a different set of needs that escape the traditional quantitative methods. Here, social listening tools become very useful - they offer insights into the barriers to category and barriers to wider adoption of the brand. They offer insights into the context of consumers' life and role of priducts and a brand within it - they help us define the problem and come up with possible solutions. Through considering how to reach out to these people, it becomes possible to come up with the ideal brand experience that is conveyed across diverse touchpoints. Visualizing and codifying human motivation gives us opportunity to beter understand and direct human behavior. Deep seated or hidden needs and cultural trends can all be identified from dialogue with customers. It uses personas as a vehicle for introducing a user perspective and adds input from a wide selection of user-centered methods.

Slide 13: And how do we go about that? People leave digital traces everywhere: they talk, share, connect comment, track and update everything (or almost everything they do), but the difference is that now we can see all of that. It's all laid out for us to explore. 

Slide 14: For example, personas are one useful way of mapping and visualizing our learnings - they are a great communication device to visualize who our audience is, and to clearly communicate it to creatives, experience designers, content strategists, and technologists. They bring everyne on the same page in regards to the audience we are talking to. Moreover, they help us clarify the goals and tasks of our different target groups. Best yet, tey lay out the touchpoints for a sound media strategy, content strategy, paid media buy - because we know where we can find these people.

Slide 15: Now that we get acquainted with out target, we can start making our digital brief. No matter what format our digital brief uses, it has to revolve around the following: a) the idea (this is our response/problem formulation for the client's challenge), b) the tasks (how are we going to go about solving this problem?), c) connections plan (tactics and system access points), and d) success metrics. Digital is not everything, but it somehow gets into almost everything - it's got to be part of our objectives, our brand, our audience. The main and defining characteristics of digital briefs is not what we are going to communicate. Instead, we are thinking what kind of system we are going to build, and how we are going to draw people into it. Another thing to remember is that digital brief is means to an end, rather than an end in itself - which is always the case when you are dealing with the traditional agency process. Planners take too much time to write the brief, then they hand it over to creatives, who are at that point pissed off because they aren't left with enough time to come up with an idea, etc.

Slide 16: Adopt a systems approach, with a brand behavior at its center. Brand story defines the brand experience and helps us decide how to convey it through different touchpoints. This is not an integrated campaign (while it may look like one), and there are two reasons for it. First, I have never seen a successful advertising campaign. Second, at the system's core is a brand behavior, rather than a message. We are not simply pushing out a message through all different touchpoints in the "matching luggage" (thanks Farrah) way - instead, we are carefully considering how each touchpoint conveys a part of the story, and how all of them combined convey consistently and seamlessly brand behavior. Each touchpoint is the starting point for the experience and not the end point for the messaging. Brand behavior informs also how touchpoints should be designed, and which touchpoints we should choose to focus on. It defines the tone of voice, look and feel, and content, and interactions for each.

Slide 17 and 18: Our next task is to visualize the brand experience flow - for example, here we are visualizing customer journey for product trail. It helps us define the importance of each media touchpoint. We are deconstructint the marketing process into discrete touchpoints and interactions. Each touchpoint creates a "brand movement." A typical consumer journey is multi-channel and time-based. The second example is for the challenge of brand affinity. Again, we have brand moments that are experienced according to the context of each touchpoint.

Slide 19: Finally, and we are going to cover this in the separate session of this workshop, our task as digital strategists is to make each point work for us. This means assigning monetary value, expectations and success benchmarks to each touchpoint. This is going to help us dynamically optimize the campaign as we go, and foreground the importance of the most effective touchpoints, all the while minimizing the exposure of the less successful ones. In other words, we are assigning metrics of success to each touchpoint, so we can monitor and optimize them as the campaign unfolds. 

Slide 20: And now, it's important to understand that these four things: starting from the consumer, writing a digital brief, visualizing the brand experience flow, and assigning metrics of success to each touchpoint are not theoretical exercises. The reality is messy, but it helps to have a few useful tools and useful guidelines. It’s the experience, the process of trial and error, and figuring things out as you go. 

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Everything about digital strategy ...

I am co-teaching the first-ever, all-day digital strategy course on November 18 in New York City. Along with the two amazing ladies (and the super-accomplished professionals), I am going to cover everything that ranges from how to write a digital brief, what are success stories and why there were successful, how collaboration between digital strategists and creatives should look like, to how to sell digital strategy to clients. More information about the full day agenda is here: http://digitalstrategycourse.eventbrite.com/

You should come, it's going to be fun! And bring friends :)

is stale economic logic behind digital marketing hampering its success?

This article got me thinking. The shortcomings of the neoclassical economic theory have been known for a long time now. It's also well known that many new currents emerged as a response to this failure. What's less explored - if at all - is what this means for marketing and advertising (and by this, I don't mean academic exploration, but the adoption of the new economic learnings in practice). Here and there, we use segments of behavioral economics, economic psychology, and economic sociology but overall seem to ignore the very reality that deemed traditional economic theory obsolete. Think monetization opportunities in redistribution markets and/or business models that can emerge from collaborative consumption. Our marketing frame is still not the one of a dynamic economic world. In all our rush for the re-invention of marketing, we seemed to have forgotten to change the economic logic behind it.

The image above is from Trashr, which connects supply and demand of discarded goods. Everyone who's lived in NYC for a while knows what gems can be found discarded on the street. Why not create a market around it? One man's trash is another man's treasure, after all. 

Post-Resume World

This is the presentation I was carrying around on iPad to my job interviews in June, instead of my resume. I realized that, more than a list of places, clients, and projects that I have done in the past, nothing inspires a conversation like talking about the way I think about things, what I find interesting/important, and what I am passionate about.

Having a social object at the meeting makes the assessment of the work fit easier because two parties are involved in an equal-footing exchange (instead of one-sided conversation style that's a staple of interviews). It also allows a person to tell a story in a personal way that puts work & extracurricular accomplishments in the real-life, relevant context of someone's life (always more interesting than just listing stuff that someone has done). It shows, too, a person's presentation skills and ability to build an argument (which is potentially super-useful for client presentations & meetings). Finally, it's a tangible display of someone's simple know-how of how to put a beautiful-looking deck together. 

And it worked out for me, in the best possible way. 

p.s. For the obvious reasons, I took out the  four case studies that are part of the original deck; they served as examples of my past work & my thinking approach to specific client tasks + deliverables. But everything else is there!

p.p.s. The part of "data mining" is taken from Julian Cole and the part of it is mine. 

 

SxSW Panel Proposal: Creativity for the Complex World

Bud and I would love to talk about complexity at the next SxSW, so we started thinking, plotting, and writing, and this is what we came up with... It's basically a summary of everything that he and I have been obsessed about in the past months, and is an attempt to get more people to start thinking about complexity. Hope the panel happens!

In a nutshell:

Have you ever been to a kid’s birthday party? It’s chaotic, unpredictable, fast-moving, and fun. It’s either the best thing or the worst thing, but you can’t know in advance which of the two is going to be.

Today’s digital world is a little bit like kids’ parties. It just involves a lot more people. And anything that has to do with a lot of people doing a lot of things is complex. To create something in the complex space forces us to think differently about the approach to, processes, and products of creativity.

This new creativity starts with interconnections between data, people, and things. It deals with the web of a bunch of small moving pieces that create intricate feedback mechanisms and new behaviors. It mixes code with the story and it’s open and iterative. It’s methodology relies on complexity’s own tools for solving problems. It's not about coming up with the new creative formats, but in making new connections. It’s a medium, not the product.

Complexity can be scary when connected with creativity. But it’s also unbelievably inspiring. It offers the maximum creative flexibility and the maximum executional options. It makes us realize that simplicity is a false god and that the new rule of creativity is looking for intuitive solutions that don’t reduce complexity but that thrive in it.

This panel is going to answer the following questions:

1. What's the difference between a simple and a complex problem?
2. Why does that difference matter when making digital things?
3. What does a creative process look like that respects complexity?
4. How do you build, launch, manage, and learn from many small experiments rather than one big product/campaign/message?
5. How should complex relationships shape creative strategy and execution?

You can see the revised & submitted proposal here.

 

Data as Marketing

There's an interesting white space to be explored that goes beyond just visualizing data. A ton of online retailers (and just about any e-commerce site) has enormous amount of data on people's affinities, likes, purchase patterns, sharing patterns, communication patterns (and all other possible patterns), all filtered by time and location. That's a lot of information.

Sure enough, retail brands use this info for personalization and better targeting. But they are missing out, big time, tho: if only they turned this "individual-focused" model upside down and used their data for all sorts of community dynamics, they would be able to influence & inspire people's behavior on a much larger scale. In other words, they'd be able to turn their vast data repositories into marketing. 

The simple truth behind using data as marketing is that people are sensitive to the design of information environments and that others are instrumental in individual motivation (yes there are plenty of wonderfully self-motivated people but we are ultimately social animals). Combine those two things and you get a powerful engine for behavioral change. And this is hardly new: personal fitness industry has become an expert in pulling personal + community info and turning it into a motivation & statistics engine. Transport the fitness industry's approach to retail and all of the sudden there's an opportunity for creation of a data-driven feedback loop revolving around products instead of one's body.

The outcome is a shared communication object - a story around products' use based on aggregated information about all possible individual patterns and discrepancies among them. These stories provides a powerful shopping context - and a bonus marketing message. Since brands are all about fitting into the context of people's lives, why not also make a story on how this is actually happening.

A bonus feature: some ideas on how to combine 43goals, daytum, dailymile and runkeeper all in one to create information context with a storytelling potential.

Sharing motivations. Renovating kitchen? Buying stuff for the party? Going through the first 3 months with a new baby? Motivations help. There's no need to create a personal profile; it's enough for an individual purchase bundle to be  displayed in the "recent purchases section" so others can react to it. (Yes this requires sharing, but this being FB age, we may need to get over it. Besides, think of the grotesque things that runners' share on DailyMile or Runkeeper after long-distance races). 

Rating purchases on emotional scale. Shopping is equally passion-driven activity as fitness, so let people share how they felt after different purchases: some of them are "blah" as they are a pure necessity (toilet paper), some leave us feeling good (i finally got that Drano), and some of them we are really really enthusiastic about (in my case, clothes, shoes, and books). So, why not share the feeling [the forbidden word in e-commerce site design]?

Personal infographics (weekly, monthly, yearly, lifetime).  Enrich the basic shopping account data on how many objects by category a person has purchased this week/month/year so they have insight on how their household shopping budget is distributed. Or, give a weekly/monthly breakdown of how many times a site was visited per person; how many savings in discounts and deals a person accumulated and what it means translated in a dollar figure (bet it will make a lot of people feel good about themselves). The interesting part is that brands can aggregate all this information and publicly display it for everyone (of course, you can also filter it just by your friends, via FB connect). It allows us to see where the happiest shoppers live (which zipcode, state, country), where the busiest ones are, and where the most eclectic ones; which product category has the most passer-bys, etc. 

"Screen time." Filter and display product categories/times/locations by the longest and shortest "screen times" on the site/section/page. Distill it down to the individual level and give a scoop in what times of the day warrant the longest screen times and which ones the shortest (a lot of insomniacs shop at 2am, you know who you are). 

Goals. People often shop with a specific goals in mind, like "clean out my closet" or "clean my bathroom" project and a brand can come in here to help people achieve them in the best and fastest possible way by display a number of people who want to do this at the same time as you do, and share experiences of those who have done it. Add here progress tracking and challenges, and a "complete a task" function becomes something with an individual context and meaning.

Face-Off Time. This one can be called "passive game," because people are not always dying to play. But, they do like to compare themselves to others and see how they fare. Simply displaying data about which neighborhood has bought the most green products or which one saved the most or which one donated to charity the most can spur a competitive spirit (not to mention instill a sense of achievement). Rewards can come in here too: reward everyone in the same zipcode with a surprising discount at the checkout because they hit the X dollar amount in green products or in savings or simply display the rewarded neighborhoods for everyone else to see.

branded filters on instagram

Now that Instagram has reached a considerable early adopter base (more than 4 million users in 7 months since its launch), there's a good question of how/when brands can jump in. (Not that they have to). Truth to be told, some brands are already there, in a very obvious way - they're having their own streams, with their own photos. But what if, instead, they came up with filters for everyone's photos?

For example, the image above screams "Coca-Cola" to me. Currently, Instagram offers only "the most popular" filter. The Barbarian Group created Screenstagram, which combines popular & your friends' photos. Now, any brand can create something like this and display it wherever they want. It's just another way to navigate through the bunch of users' uploads. Now, why woud people care about branded filters? First, if brands like to claim that they want to "own" a category of human experience (running, cooking, fashion, grocieries, going out, extreme sports...), this is one simple way to do it. And even simpler than this, maybe they manage to filter some really good content that people just simply wouldn't come across otherwise. 

I found this screengrab here.

Unknown unknowns.

I am pretty late with this, but figured I should put it here anyway. It's the story behind my Creativity & Complexity deck. It starts with me saying that advertising creativity has always been a branding vehicle, and if we are talking about branding (my fav subject) we can't avoid thinking about creativity. And now, as everythone's trying to figure out what's going to work online and why and how and all of that, it's useful to backpedal for a sec and remember that evolution of creativity is the evolution of media. So here we are now, in 2011, stuck with digital media. What helps?

When talking about creativity, everyone thinks about creative talent, creative agencies, or creative deliverables. But my starting point was not the words of wisdom from Weiden or Goodby or any other famous ad creative.  Oddly enough, here's the quote that (I think) captures the best the snafu situation that we have today with creativity: "... because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns - the ones we don't know we don't know." (the live version of this statement is here, for those who are into it).

What makes the unlikeliest of all quotes so relevant here is that the infamous "unknown unknowns" are in fact the core property of complex adaptive systems. (Worth noting: CAS is the term that showed up in biology and that has since been widely used in organizational and technology studies). CAS are the systems that are built around, and thrive, on unknown unknowns. That's what makes them different from merely complicated systems: in the latter, there are a lot variables and the catch is that there's just too many of them. But luckily, they are all known. Think airline cockpit for example. Here, it's a shitshow, but if we simply follow a sequence, we are going to be just fine. The sequences don't change and they can be broken down into a series of simple problems - so the learning curve is probably, possible, and likely. Experience and expertise count big time here: the more times someone has done some complicated thing (like preparing for a pitch or making a media plan or managing client relationship), the better they are going to become in it.

But complex systems are no such walk in the park. They are like organizing a kid's birthday party: full of crazy towns, unexpected developments, left-field surprises (someone cries in the corner, someone doesn't want to play, someone got too sugar-high and is off the rails). This situation can't simply be broken down into its essential components and analyzed. And even if we could do that, complex situations are un-repeatable so the insight won't help us much. If anything, experience almost becomes a liability. Expertise here can be valuable, but far from being sufficient: the next bday party, for example, may ask for a completely different approach than the one right now. Current successes are no guarantee - and much less a predictor - of future sucesses. Thus, what makes complex systems hard to deal with is a deadly mesh of unknowns and unpredictability. The main take-away is that complicated environments are rife with risks; complex ones with uncertainty. Risks are calculable, uncertainty is not. So there.

Advertising industry - as it seems right now - has always dealt with complicated environments. And it's been incredibly good at this (think media buys, ad unit sizes, length of TV spots, and creative solutions that are meant to fit these formats). It's been good because it operates as a simplification machine. Think simple has become a mantra and a signpost: we were thought to come up with a single killer insight, a compelling idea, one single business solution. Then we take it and multiply it throughout different touchpoints without paying attention to the complexity of each (no matter what transmedia planning claims).

Our solution to complexity has been simplification and multipliction. We have been fending off complexity through offering coherence. Even if we don't want to admit it, we end up in the business of resizing: how does this solution fit on the billboard; ok now, how does this same solution fit on an iPhone?

This approach worked for a while, no doubt. It still largerly works. To see how and where it may fail, the best is to use quote from Apple's CEO. No, not Jobs - the other one. The one that most of people would rather forget. When comparing Coke and Pepsi, John Scully said something along the lines, "Coke always focused on the drink. Pepsi focused on the person using it." Now, the catch here is that contexts - and people - using products have become incredibly interactive, networked, info-rich, collaborative, and all of that. Think the activity of cooking for example: it used to be pretty known where we get out inspiration/advice/resources. Not so much these days: there's always a new app, source, filter, community that become part of our cooking experimentation. People and their activities have become complex behavioral networks. 

And our challenge is to align our thinking as an industry with the complexity of this environment.

The first step is not to try to simplify complexity. Instead, build things that can in this complexity thrive. Instead of awareness, acquisition, products, sales, media buys, prices, promotions, budget, and ownership, change deliverables (and language) into connections, generative relationships, interactions, new combinations, systems, renting, etc. The best online creativity is alive - it's a medium for a ton of other things, not the end result. Sticking to thinking about creativity in terms of the creative talent, creative agencies, or creative deliverables is bound to make us seek results that are efficient and repeatable (and, in fact, it is this repeatability that accounts for efficiency) - which in turn is bound to disable us, organizationally, from solving complex problems.

In the world of unknown unknowns, the idea is "to be less wrong than yesterday." This may mean focusing less on abstract goals (drive brand engagement/raise awareness) and more on concrete behaviors (how does this particular design solution lead to desired activity and business result). In this context, it will turn out that the best digital creative solutions are always about something else. Not everything is creativity. But creativity is everything.

Rules to Execute By

Once I put together a list of the best examples of digital creativity, I started wondering what does it take for digital creativity to happen. If my list offers any evidence, it is not about creation of brand images, storytelling ideas, and media strategy for distributing them. It's about creating conditions that allow something unexpected, fun, informative, communal, or helpful to happen. Also, almost by default, a lot of successful digital solutions have marketing built into their product. Groupon has done it really, really well; so has Pepsi Refresh Project, GroupTabs, and Best Buy Shopkick. To build upon the definition of digital creativity as a plan for arranging elements, I offer here the possible routes for executing this plan. 

1. There are no shortcuts. It's not enough just to release some commercial art piece and count on it to stir up consumers emotions; the hardest part always happens afterwards. In order to get a brand to be talked about and interacted with, an idea is only beginning of the job. The rest of the job here means coming up with solutions that build upon emotions long-term: for every idea that plays upon consumers' emotions, there needs to be a set of follow-up tactics that give it legs. Sometimes that means 24/7 engagement (Twelpforce Best Buy), sometimes facilitating a community (Ford Fiesta Movement), sometimes making something useful (Lufthansa's MyFlightStatus) or informative (Frito Lay's Chip Tracker).  Same token, I wonder where New Balance is going to take its Anton Krupicka partnership, and how Old Spice is going to continue interacting with its now considerable fan base. 

2. Build Media Behavioral Plan. Having a very a narrow view of consumers actions based on them rating something, updating, RTing, checking-in, clicking on, etc. prevents from seeing impact that our solutions have on the larger behavior that we want to change/inspire. Too often we think about the most effective communication channels for reaching consumers instead of asking how to align diverse behavioral tactics in order to achieve a desired change.

3. Enter decision-making game. It's always useful to wonder how different creative solutions will help consumers choose between different products/services/brands. That's a good perspective that shifts the focus from the brand and its story to consumers and their point of view. To avoid the over-simplified model of consumers as beings with "limited info-processing capabilities" leading to the "cut through the clutter" requirement, the best is to think about creative solutions as resources. This means aggregating and curating stuff that already exists online (eBay Lookbook, Nike+ Foursquare), using group dynamic as a resource (Groupon, Pepsi & Food52 recipes on Stickybits, Barcode hero), visualizing info (OK Trends, Hunch Taste Graph), or amplifying the behavior (Don Q's Lady Data). 

4. Get rid of dead ends. This means always think what comes next: how some particular tactic or solution can be linked to the next one, and the one after that. Think the rules of improv, and apply them to digital (COACH Poppy Project and Jonah Peretti's Start The Adventure are good examples). The point is: address a campaign as an interconnected system, not as a story (DonQ's Facebook page, Don Q's Lady Data on BuzzFeed). Then, keep it alive.  

5. Digital is not about the tools. Rather than chasing the latest digital gimmick, it's always good to think about digital as a network of relationships that are made both of behaviors and technology. Then it's possible to explore how make some relationships visible (Netflix Rental Queues Visualization), how to create new relationship between people (HowAboutWe, Uniqlo Lucky Counter), how to create a new relationship between people and products (Tesco iPhone app) or between people and the brand (GroupTabs, Best Buy Shopkick), how to amplify/improve existing relationships (Pepsi Refresh Project) or how to simplify them (Rightcliq by Visa).

6. Think bricolage. Any combination of digital/physical (Nike Livestrong Chalkbot, Schnitzel & Things iPhone app), brand/community (Burberry Art of the Trench), communication/behavior (MTV VMA's Twitter Tracker), mobile/web (7-Eleven + Zynga partnership), game/activity (RunKeeper) is allowed. Especially the unexpected ones. The point is to stick together different things to develop something new. It would be easy to think of it as a simple recombination: what's great about bricolage is that it uses bits and pieces of radically different media and behavioral dynamics to create new formats.

*My title is an obvious play on Bud's "Words to Strategize By" post that I very much recommend. But here's a twist: instead of being interested in the ideas that may guide our thinking, I was more into coming up with the possible rules of thumb for their execution.

Examples of digital creativity

I am very excited to be presenting as part of the Miami Ad School program in October (thanks, Mehera!). As part of my presentation on digital creativity, I have gathered here some campaigns/digital efforts that I think can serve as good examples. Because I believe that digital creativity can best be described as a "plan for arranging elements in such a way as best to accomplish a particular purpose" (Eames), I settled on the following criteria: a) ideas that enable/facilitate/inspire community well, b) ideas that curate/aggregate stuff that already exists on the internet instead of creating something new, c) ideas that combine things that were previously unconnected (this can mean digital/physical or app/web connections), d) ideas that make stuff visible so as to reveal collective trends/tastes, e) ideas that help people do something in the easier, better, and more fun way, and f) ideas that encourage some sort of behavioral dynamics (games, interactions, points, etc.) I also included some good ideas that are not used by brands, but that are executed well, and that solve some problem and/or respond in a new way to some need. This is just a preliminary list, and I'd love to add more based on your suggestions. 

a) Ideas that enable/facilitate/inspire community

Pepsi Refresh Project 

Ford Fiesta Movement

Groupon

Anton Krupicka + New Balance 

b) Ideas that curate/aggregate stuff that already exists online

Don Q's Lady Data on BuzzFeed 

COACH Poppy Project (disregard the visuals; the idea of the sites' trail is cool)

eBay Lookbook 

Rightcliq by Visa 

Burberry Art of the Trench

c) Ideas that make new combinations

Nike+ Foursquare

Best Buy Shopkick

Pepsi & Food52 recipes on Stickybits

Schnitzel & Things iPhone app

Tesco iPhone app

Nike Livestrong Chalkbot

Barcode hero 

d) Ideas that make stuff visible

OK Trends - data from OK Cupid

MTV VMA's Twitter Tracker

Netflix Rental Queues Visualization

Frito Lay's Chip Tracker

Hunch Taste Graph

e) Ideas that help people do something in the easier, better, and more fun way

HowAboutWe 

Don Q's Lady Data 

Twelpforce Best Buy

Lufthansa's MyFlightStatus

f) Ideas that encourage behavioral dynamics

Jonah Peretti's Start The Adventure (why can't brands come up with something fun like this?)

Old Spice

Uniqlo Lucky Counter

RunKeeper

7-Eleven + Zynga partnership

GroupTabs

Image found here.

The game of catching-up.

Agencies have an uneasy relationship with the "new generation of consumers," to say the least. Sure, stats like the above have become a must-have in any client presentation, there are slides on the trends of their behavior, there are audience insights and landscape overviews. But still, these consumers ("millenials", "gen Y", "superconsumers") are treated more as some special species from the future than as the everyday marketing reality.

Ok, this may not be completely fair. Agencies have been getting better in marketing to these people online - that is true. At the same time, the question is: do they really, truly understand how today's young consumers behave online, why and how they use the web, and how to resonate with them? Because if they did, would they still been doing what they are doing? This is, to the great extent, still brand-dominated world. The campaigns are approached from the brand's point of view, and retrofitted into consumer behavior. This is only understandable, since it is the brands that are paying for campaigns. Got to make a living. Still, how long this can go on, until the new generation of consumers completely slips out?

First, the "kids" who grew up with the Internet are not kids anymore - they are way past college, with a completely new set of needs, and consequently products, services and brands that can respond to them. What they are not past is their media habits and behaviors. You don't crucially change the way how you use the web and behave online just because you grew up - you further it and build upon it. The expectations that have been formed earlier stay. Don't expect that someone who watched TV shows online all of the sudden signs up for Time Warner - they may just hook up their computer to a flat-screen that they can now afford. Someone who shopped on Etsy may upgrade to Net-a-Porter, but the deal is the same. And so on.

Second, and more important for this present moment is that whoever is in touch with this generation changed their own media habits, too. Parents (and grandparents) are now on Facebook to keep tabs on their kids (or just plainly to connect with their long-lost high-school friends or play Farmville); they watch YouTube; they go to Twitter (can't beat all those coupon deals); and maybe even occasionally take a peek on Foursquare. And this is where the real challenge is: what we thought of as typical "suburban" parents are hardly such anymore. If we thought that we knew trends and behaviors of a certain demographics, we actually can't claim that today. All bets are off.

The point is that the change that new generation may be leading spreads way too fast to all other demographic segments. It impacts how other generational demos are consuming media, shopping, reading news, communicating, and interacting with brands. Because they all live in the same home, the gap between early adopters and the mainstream rapidly narrows.

So while agency teams are still building personas (btw, do people still do that?) with a photo of some edgy teenager, they may as well replace it with a young professional, college graduate, or whomever else fits the bill. Soon, it's all going to be the same media habits, brand expectations, and consumption patterns. It may finally be time to stop talking about the millenials, and start thinking about the millenial behavior. 

Note: this post was inspired by a brief conversation with Edward Boches and by this MediaPost article.

Do we need a new definition of creativity?

 There are a few things that ad people like more than to call out for someone's portfolio when in disagreement with that person. In a more modern version of the "show me your portfolio" theme, this means asking the question: "yes, but why listen to him? what has he actually done? I mean, what has he ever made?" 

Beyond its occasional cameo in the spats that are advertising world's joie de vivre, this question is meant to mark a long-living perceived divide between people who make stuff - a.k.a. the creatives - and people who merely observe and talk about stuff - a.k.a. the strategists. Because, the reasoning goes, creativity is about "producing." In other words, to be creative, a person actually needs to make something tangible.

Hate to bring it up, especially because I don't have a portfolio to display, but this question doesn't make any sense.

First, it asks for a static commercial art piece (or a "portfolio" of these). Last time I've checked, those were very popular on television. Creativity regarded as a great copy, as an idea that makes a twist on a popular culture or that "captures the zeitgeist," or as a piece-of-art logo and print ad may indeed belong to the same era as those media that defined it. 

Second, the question asks for an individual creative genius ("show me what you've done"). Because, if advertising award shows are to be trusted, there are people among us who are very very talented in making pretty and funny stuff. Sometimes they even earn the title of "Sir" for it, but if the Queen is busy and that falls short, at least they get to be called a "Guru." Which may be, in spiritual sense, even better.

And third, it asks for an agency ("why would I listen to this guy?"). Now, this being an unfair world, there are some agencies that are deemed to be more creative than others. What that usually means is that they are considerably better in making commercial art pieces for their clients that guarantee that those clients will make a pot of gold based on them. To prove this point, Crispin - in a streak of its usual genius - created a campaign that revolves around measuring girls' butts for Old Navy. Don't expect of advertising to get more creative than that.

Ok, let's fast-forward now to creativity of the digital world. Here, most creative stuff that people create are relationships, connections, and interactions (think 4Chan model, or Tumblr model, or Twitter, or what any startup is building right now, for example). They connect tools with behaviors, with geo-locations, and with objects. They create networks or systems, if you will. To be creative there, you need to be, well, strategic: you need to figure out who connects to whom, when and why, and to what result. Simply, you need to plan for a chain reaction. 

So what happens next in this scenario? These networks then give way to a collective creativity to become visible for all to use it, build upon it, change it, and add to it. In the same way as the concept of "lone inventor" turned out to be a myth and the concept of "big idea" turned out to be hoax, the notion of "big name" in advertising may turn out to be a fake. 

Simply, an "advertising genius" holds no chance against the bulk of digital people who make their creative talent visible - and available - the moment they turn their computer on. Worse yet, their focus on coming up with witty, funny, pretty or smart piece can turn out into a liability: this is not a templated world, and thinking bound to 30 seconds or 50x100 pixels or in any other given frame is bound to fall short. For the ad solution to be successful, it needs to fit with the network created by stuff that people are already doing, talking about, and acting upon. Again, without a template to hold onto, one needs to be strategic. 

Finally, with all this collective creativity connected in a network, what to do with a handful of creatives holding the fort in ad agencies? As Edward Boches told me on Twitter the other day, "the most interesting stuff has been done with individuals: Lemonade, Uniform Project, Vaynerchuck - all better than brand farts." Why do we pay attention to them? Well, because they are doing something new, interesting, fun, and meaningful. And because no one knows where a good idea is going to come from, why limit it in advance to a creative team? 

The bottomline is that digital creativity may as well end up having to do as much with observing as it does with making.  Or, as Warren Bennis put it, "there are two ways to be creative. One can sing. One can dance. Or one can create an environment in which singers and dancers flourish." At the end of the day, to create something needs both.

All of this is fun stuff, and it's best to let people who face these challenges every day answer it. This is why I created an all-girl + a super-woman SxSW panel where one creative and three strategists talk about this stuff. Why all girl panel? Well, not to be all bra-burning about it, but hanging out only with guys can get so boring sometimes.

How big is "The Chance"?

Nike followed its "Write the Future" with the new online contest called "The Chance." Using soccer superstars featured in their (almost) universally loved spot "Write the Future", Nike hopes to inspire young soccer-wannabes to create their fan pages on Facebook, promote themselves there, and build a following in order to be selected for the Nike Academy Football Trials.

While this sounds like something coming straight from Simon Cowell's manual and thus may be thought to succeed just by sheer association, I still have my doubts. The idea for engagement is, in itself, not bad at all - it has a potential to generate a considerable buzz for Nike, and it has equal potential to solicit participation. 

Here comes a question, though: the requirement for participation is to be at least 18 years of age. At that point, most soccer-talented youngsters have already either achieved some prominence going beyond their high school soccer league, or are signed up by a team. So, why do they need to Nike soccer academy? Sure, some of them may come from the gravely disadvantaged regions, and this is their chance to raise to global prominence. I'd like to think that those disadvantaged regions offer regular high-speed Internet access required for participation in the contest.  

Where does this leave us, then? Will all those people who play soccer as a hobby, soccer fans, and amateurs. Can Nike academy turn them into next Ronney or Ronaldo at the age of 18 and more? Perhaps, but I wouldn't bet on it.

There's another thing, too. If research is to be believed, the Internet activity around the World Cup has reached the new high. Which means that people are actively looking up online for ways to express their fashion for soccer, connect with other fans, get information and commentary, and just participate in the discussions surrounding the World Cup. They are interested, motivated, and active target for all brands, and especially for the sports brands. Why not do something to help THEM instead have more fun, cheer their teams better, feel greater participation, and engage in a bigger debate? Granted, brands are doing some of this, albeit rather shyly.

At the same time, a simple Twitter update about the attire coaches choose to wear for the games has a potential to solicit a lively debate, like it did last night. Comments like "USA coach looks like a gym teacher," "British coach looks like he is on a museum board," or "German coach is an ad guy," poured from everywhere, adding up to each other. If I knew how to make things on the Internet, I would make a site where people can fill in who all coaches remind them of. At the end, there's a winner based on the most frequent association. Small and silly, but apparently something that spurs people's imagination and passionate responses.

This only reminds me that rarely brands encounter a target group of scale, passion, and participation than the World Cup gathered this month. I can't help but think that, this time around, Nike's missing its chance.

digital product dev = branding

 Digital product development equals branding. 

If this view is not more popular, it's because digital marketing industry is dealing mostly with pre-Internet brands, trying to retrofit them for the internet. In this situation, they end up doing marketing instead of product development.

A few words about product development: it's based on solving problems, it's aligned with what people are already doing/talking about/behaving, and it's creating something that let's people do/talk/behave in a different, better way. It's awfully similar to the way web operates.

Why is this sort of thinking so hard to apply to brands? 

Sure, old brands are big, slow, complicated, and all of that. But what makes them truly different from digital brands is the fact that their product development and marketing are separate, and come in a "create a product"-"market the product" sequence. 

To make Coke relevant, P&G relevant, Walmart, or Nike relevant in digital is something that keeps many a CMO awake at night. In fact, it is R&D management that should be awake. Once digital becomes part of the product development process, then marketing those products is a breeze.

The problem here is that the burden of digital can't fall at the end of the value chain: to marketing, advertising, and promotion. When it does, then ... well, we have already seen what agencies can come up with. If they are stuck in "why aren't we more creative" limbo, it's because they are entrusted with an unfair task.

To really be relevant in digital requires taking a step back and realize that value chain is more of a Venn's diagram, where business plan intersects with user behavior, strategy, technology, user experience, and visual design. It's about keeping all those different views in play while making things. 

This is something that all start-ups and digital brands already know. They invest in their products, in making it relevant and continuously evolving: not because they want people to talk about those products, but because they want people to use them. Which means that they spend most of their time doing R&D. 

Digital is really not a marketing challenge.

online, causality doesn't exist.

By default, the web is a network. When we say web today, we don't mean only "stuff online," but the whole digital ecosystem of interactive interfaces, smart objects, phones, and whatever else can interact. Now, if connections between people and things are like a network, then the difference between a "behavior" and a "mechanism" becomes a little bit irrelevant (just think Foursquare, Twitter, Nike+, or just about any app these days).

If every behavior is a bit of technology and a bit of our action, then we are actually talking about a network that is a combo of both. And when we start talking about networks, then causality becomes slightly problematic. In other words, digital really doesn't give us a reason to believe that either behavior or technology is something separate that causes immediate and apparent changes in one another. It's all about small & gradual changes.

This would all be cool if the marketing models haven't been based on causality or, on questions like "how is this effort going to impact behavior of this particular target?" or "how many impressions do we need?" or "how much media buy is going to cause this particular sales lift?" Everything people in marketing do is to create causes that (they hope) will result in certain effects.

But what if things don't work in this way? In everything we do, and in all (or most) decisions we make we look up to either to others or to an immediate context. We often do things because others have done them, or because they are easy and convenient to do, or because "one thing led to another."

This is where visibility of aggregated individual behaviors comes in: knowing how many people have already done something inspires and coordinates our own behavior. In turn, the ability to see actions of others, immediately and in aggregate, sort of changes how we talk about mobilization, organization, collective action, and movements. It's all about adding scale to the small & gradual.

Blue State Digital knows this, and a very few smart brands also know it, too. They let people to directly communicate with each other, organize their own events, and then record and share stuff they have done with the online community. Instead of dealing with the question of causality - "how is this message going to change this behavior," they focus on the widespread sharing of information about all the local, individual actions that happen. This visibility of collective "traces" then inspires a larger collective behavior.

The fun part is that, in the past, it took us years or even decades to gather this sort of composite data. At that time, when we could not see each other (literally), operating according the principle of causality (this brand/cultural/political representation caused people to behave in a certain way: shop, identify with something, or vote) may have been an useful social/economic invention. But today, choices, preferences, and actions of others are collected and exposed at an almost immediate speed. Networks and patterns made of small and local stuff form. Make that visible, and the whole new world opens up.

Still, for now, the only few times when we have seen this sort of local-actions-turned-networks that change our perceptions and behaviors were media events like Winter Olympics (Twitter Tracker), Super Bowl (reading Twitter was more interesting than watching a game), or MTV Music Awards (not sure how relevant that one was). 

Why don't brands do this? To remain important in today's world, the best strategy may as well be to expose a bit of it.

why brands should NEVER think like media companies.

I love when people claim that brands should learn to think like media companies online. You know, because media companies' cost-and-revenues structure fares so well in digital. 

The argument "you should turn your brand in the media company" is, in a nutshell, based on the overused quote that "we are not in the business of keeping media companies alive, we are in the business of connecting with consumers," by Trevor Edwards.

On the surface, it may seem that the best way to avoid dealing with media companies is indeed to become one. Something like, let's not rent anymore now that we can own.

But, operative word here is "on the surface."

By behaving like a media company online, brands unfortunately replicate the way that media cos' costs and revenues are (mis)aligned in digital media. Or as Michael Wolff recently put it, online "costs are out of whack even with the most optimistic revenue expectations."

And indeed. Just look at the YouTube viewership of the Chanel videos that the article I linked about uses as "success stories." Chanel produced several videos (including a silent movie and a short movie made by Karl Lagerfeld, which, one can only suspect, cost way more than an ordinary YouTube video) that drew 3,901; 13,626, and 37,884 views. This is a bit more than 50K altogether.

Even a failing magazine can guarantee any fashion brand a larger audience than that.

This reality does not stop the author from concluding that, "in this new reality, forward-thinking fashion brands like Chanel are learning to think like media companies, creating and publishing original editorial content to earn attention and attract fans who will carry their message across the internet." Well, darling, it seems to me that "the fans" are not too hot for the Chanel content online after all.

Basically, the problem here is one of replicating an old media model in the new media space. Just because brands CAN produce content themselves, this does not mean that they should. There are a few reasons:

First, why original content? There is so much content on the web, especially about fashion, and especially about Chanel. Can you do something with it? Instead of creating "all-original editorial" as seen on Chanel News online destination that the author lauds as "forward-thinking," why not employ Gawker's or Mashable's model where you have a large variety of contributors? Besides reducing costs of content production, this also means that a fashion brand is co-creating their "news" with its industry, which seems to me as a super-suitable model for the fashion biz, now that all the fashion bloggers are around and everything.

Second, why spend money on building a full-blown original destination? Listen to this: "The idea is to give all these social networks a location where they can have genuine information about Chanel," said the president of Chanel fashion. Um, do people in "all these social networks" want another location to go to? They can already get all the "genuine information" right where there are (live-streaming of Luis Vuitton's show on Facebook being just one example). Sometimes it is just cheaper to rent.

Third, and this may come as a surprise, but people online want from their brands way more than "inspiring content to talk about and spread across the internet, driving recognition, desire and conversion." Aside of the fact that people online love mostly to talk about themselves (and not about some brand), they also want their brands to be of some service, or be helpful, or offer expertise, or craft, or information that consumers really can't get anywhere else (and no, a silent movie does not belong to this category). If the high-end fashion consumers really strive for exclusivity and status, then fashion brands should start experimenting with enhancing fashion products with complementary service, which the web is just perfect for.

Back to the Trevor Edwards quote. If brands are really in the business of "connecting with consumers", then they (along with the people who advise them) should understand that in digital there is a variety of ways to make this connection happen. Creating your own content is only one of them, and in that, often the most expensive option. Why would you ever want to advise it to your client??

behavior + technology = situation

“A revolution does not happen when society adopts new tools, it happens when society adopts new behaviors,” famously said Clay Shirky some time ago.

And indeed, his statement seems simple enough. The problem is, it really does a little more than to reveal all the questions that it fails to answer.

The most obvious one is: how does this adoption of new behaviors happen? And then, there's also this one: what's the relation between tools and behaviors?

Before I go any further, first there's a quote that I love: "What happens in the place of two ghosts - society and technology - is a collective thing, the trajectory between programs and anti-programs."

So, let's maybe try to change our approach. For a second, imagine a world without any and all form of causality between technology and behavior. Imagine that they do not "influence" each other. Imagine that they interact.

Now, you don't actually need to imagine that last thing. Because interactivity is all around us. And truth is, we are actually not the only ones who can interact. Or, as Russell Davies says, “As object informationalize, communication channels are getting built in. And cleverer phones will be the perfect things to interact with these clever objects. This is what advertising and marketing and media people really need to get afraid of. There is a whole model here that integrates the conversation into the stuff, creating a much more natural relationship between people and things.”

So, if that's out reality, why are we still talking about who influences whom or how our campaigns are going to influence behavior or how differently people are going to behave after they see this or that message?

I guess that's because we like to think that there is a clear-cut dichotomy of people/culture on one side vs. technology on the other. Truth is, there's no clear-cut division between them, there's only a network. How so? Very simple: in digital, people are defined by their behavioral patters or, by what they do online. This is only partially defined by their skills, and interests, and preferences. The rest of their capabilities belongs to their tools/technology. (There's another reason why I find this situation interesting, and that's because it tackles the question of motivation: do you do something because you really want, just because you can, or because something in your tools/behavior of others inspired you to do so?)

This is a sort of game changing situation. And indeed: what we are creating today in marketing are not just products and services, but situations for interaction. Here, everyone included (people, objects, tools) are gathered into "programs of action." Now, instead of causality, the relationship between technology and behavior is the one of prescribing behavior: what kind of behavior does your situation encourage? What behaviors does it restrict?

I read somewhere about the rationale behind Foursquare, which goes something like this: instead of pushing messages out, Foursquare is something that allows people to prescribe activities to other people, to encourage them to change their behavior (stop going to same places, try out things that they wouldn't normally do). Similarly as Foursquare encourages its users to have a more active social life, or as Twitter encourages sharing of information by displaying the number of followers that each user has, there are services that rely on the same principle of transparency to curb behavior. For example, Bundle’s “Everybody’s Money” shows millions of personal finance trends across U.S. and allows people to compare their spending habits with those of others. Or, Blippy automatically publishes daily personal purchases for others to see and interact with. Phillip Kaplan, who founded Blippy, says that situation where you can see what everyone else is buying creates an interesting social dynamics, as maybe you’ll start manipulating your spending habits on your cards to show just a certain side of yourself.

What does this have to do with marketing? At the end of the day, we are still in the business of changing people's behavior, as we have always been. The difference is that, in digital, communication is much less effective than situations for behavior that we can create.