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Going Vertical: Mass to Niche

Sunday, April 14th, 2013

tributariesTime, Newsweek, and U.S. News & World Report: What do these three publications have in common with digital media?

They’re the storied predecessors of Facebook, LinkedIn, and YouTube.  The “Big Three” weekly news journals were the foundation of news and more specifically, media. The publications roared through decades as established bastions, unflappable sources of information for generations of American readers. They appeared untouchable — until they were. The age of participation was ushered in with the Internet. No longer were we reading one way, digesting our news and ideas from a finite group of professional editors and writers; the experience became a conversation ­— an exchange of expressions. We read not one source, not a dozen, but hundreds, sometimes even thousands of individual, independent expressions, and we also share our own. Hence, large mass print publications struggled; some became irrelevant and ceased doing business.

But how much has truly changed? How “untouchable” is Facebook, LinkedIn, and YouTube as “generalist” venues for digesting and sharing information?

If the history of traditional print journalism taught us one thing, it provided a clear example of the progression from simplicity toward fragmentation. If there is one successful model built for a mass audience, you can bet that there is an entrepreneur ready to carve out a sliver of that for a more specialized community. It’s the nature of business. Fewer eyeballs reached = smaller startups = manageable investments.

Now, in recent days we hear about the broad defection from Facebook by teens. Consider a service that was once established for college students, and later overtaken by an audience of one billion baby boomers and mature audience members being suddenly unappealing to Gen Y. Young people not wanting to hang out with their parents? Who would’ve thought?

Why Teens Are Tiring of Facebook

A new website called Daybees has rolled out in the UK, and is coming to the US and other countries soon. Positioned to compete with Google in one specific area — events — this service positions itself as the world’s largest events search engine. Wherever you are, how perfect would it be to call up this site and punch in a few simple coordinates to see what is happening nearby?

Seeking to Outdo Google in Searching for Events

“I love Google,” said Gary Morris, the founder and chief executive of Daybees. “I use it umpteen times a day. But if I want to find an event that’s taking place at a certain time on a certain day, 2,000 feet from my front door or wherever, it’s impossible.”

Technology has empowered us in ways unforeseen. It has created this ability to find what we want, when we want, and how we want. Now more than ever, it’s up to information service providers to deliver on that brand promise.

After the fragmentation of digital media, what new technologies will replace it?

 

 

 

 

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The Era of Planless Marketing

Sunday, March 17th, 2013

circus_swingThese days, I think that every company— small or large— could be forgiven for operating without a plan. After all, we live in an age of fickle customers, fluctuating needs and fleeting, sometimes frivolous channels. Our annual marketing strategies swirl like fall leaves in a whirlwind of uncertainty, half-baked initiatives, and changing goals.

We live in a boundariless world, it sometimes seems, with few definitions. There’s certainly an immediacy to it all, but few ways to truly measure or manage how we’re performing in real time. And let’s face it, speed + confusion does not a wise result make.

What’s the primary culprit, per se? Well, as usual, it’s those tricksters in Silicon Valley (and increasingly, their VC counterparts and tech entrepreneurs residing in New York’s Silicon Alley). Technology and the tools being developed are moving at breakneck speed and with it, there is an unprecedented challenge for marketers to even develop a relevant plan, much less try to sustain one.

In response to those game-changing factors, consumers are awash in new opportunities and can experience fascinating possibilities as managers of their own destiny. They can learn about products through social media, read and share reviews across a baffling, mind-boggling network, enter stores to examine the products more closely and then retreat to their mobile devices or tablets to source a dozen cheaper alternatives for actually buying an item.

As a reaction, marketers — understandably — are in a confusing labyrinth fraught with all kinds of dilemmas. Marketing executives could be excused for throwing their arms up in frustration. It must feel like sitting in a forced game of Russian Roulette with a game show clock in their face: They must baseline the current performance, measure results, and demonstrate ROI. And it’s no longer around annual, or even quarterly results.

A few years ago, I was in counseling after divorce and my therapist made an interesting assessment: I, Dwayne, needed a plan.

It was true. There wasn’t even a semblance of planning. In the rudderless, maddening chaos of managing career, children, my own life, along with a devastating divorce, I had become reactionary. I managed by not planning or managing; I simply responded by firing from the hip. There was just one problem: Not only was my gun not leaving its holster — it was barely firing in even a remote direction of intelligence or desired achievement. Around that time, a friend shared a new term: Tabula rasa. In Latin, it means a “blank slate.” It was time to clear the clutter from the table, from my mind, and begin fresh with a new plan.

I predicted a few years ago that Facebook would quickly see its day and wane like unwatered daisies in blistering heat. All recent studies (and all ample research is readily available to us as consumers now) have shown that usability of the website is beginning a decline across demographics. It’s inevitable. In the same way that I saw traditional print media fracturing and fragmenting into a million micro published properties, so will mass communities be divided and carved up online.  And yet, we see large global companies advertising on television, offering premiums if you’ll simply “like our Facebook page.” Why? The customer data is never actually acquired unless you’re willing to pay Facebook, and “likes” mean nothing unless they translate to sales.

We’re all living and working in a dizzying array of the “impossible multichannel universe,” a vast space of social communities that is expanding continually. It serves no benefit to anyone to simply populate those channels with content and acquire new fans or friends without a cohesive, coherent strategy.

Before we work ourselves into a whirling dervish, it may make sense to step off the ride. Because the notion of ROI starts with a smart goal. . . and a clear road map for getting there.

 

 

 

 

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Facebook Trades Up: From Community to Commerce

Thursday, November 29th, 2012

An Innovative Sales StrategyIt’s been beaten like a dead horse for years now: At those important historical benchmarks of 200 million, 400 million, 800 million, and finally one Billion users, analysts and tech pundits wondered how Facebook could ever truly yield any real profit.

Well, with the purchase of Karma, Facebook took its first serious step toward the enviable crossroads where social media meets commerce. After buying the mobile app, Facebook has continued to develop a new gift-giving service to add to its portfolio of offerings. Now, with Facebook GIFTS, the company has been expanding its efforts at serving as a portal of e-commerce for its massive audience.

The New York Times article seems to suggest that the moves are part of a shareholder relations PR effort to build confidence in Facebook stock after its IPO debacle, but I think it’s an untapped market that could quickly outstrip all other revenue streams for the company.

Consider a community of one billion plus users — all getting updates and reminders about upcoming birthdays and anniversaries of friends, not to mention holidays — and having the access to directly make a purchase on their mobile device for items such as Hulu, iTunes, BabyGap, or Dean & DeLuca. It’s a simple, easy transaction that starts with a nudge about a Facebook friend’s birthday, and ends with a selection of greeting card and credit card transaction.

For fulfillment, Facebook rented a facility in South Dakota and developed a proprietary software to monitor inventory and shipping. The company has not disclosed the commission earned on each purchase, but merchants with a similar agreement with Amazon provide that company with about 15 percent of sale price. The average purchase price to date has been about $25.

It’s a stroke of genius that will also continue to build the unfathomable amount of user data that the company already owns. Having demographic information and email addresses for one Billion customers is desirable; having credit cards and an easy-to-use method to shop? Priceless. LinkedIn should be so savvy as to offer similar types of corporate and professional gifting.

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Content on Political Ideology — But the Visual Medium Is King

Thursday, October 4th, 2012

Visual Perception in the MediaAnyone who thinks that were not living in a visual society should watch — and rewatch — the Presidential debates. Specifically, the first one at the University of Denver gave us an incredibly smart example of how important visual perception can be.

The screen was split for much of the contest, giving us the opportunity to evaluate the real-time gestures and facial expressions of the candidates. We saw the genuine, undeniable demeanor of the both speakers at a level of scrutiny never witnessed before. Large high definition screens didn’t betray the slightest grimace, smile, wince or blink of an eye; contemporary sound systems reflected every miniscule inflection of their voices. As if that were not enough, we had the immediacy of Twitter observations to validate or correct our thoughts. And the fact-checkers and pundits were all there the second the debate was finished to elaborate on what we thought and felt we had just witnessed.

Visual Perception's Role in the Presidential CampaignIm not exactly a political pundit, but even I could sense the energy and confidence, the sense of assertiveness and the will to communicate better, all imparted by Mr. Romney. Conversely, President Obama appeared tense at times, defensive and even resentful to be defending his position. On the occasions when the President appeared engaged, his inclination to quietly, intellectually analyze the situation was in stark, flat contrast to what felt like a passionate commitment and determined style of communication by Mr. Romney.

Im bipartisan in my views of political doctrine and I can admit that I believe the President has done a fine job in many areas of policy, not the least of which has been navigating an increasingly dubious and tricky position in foreign affairs. But the differences seemed clear, even magnified by the resolution of the image and the severe crop on the faces of both candidates. Even The New York Times, historically positioned on the left, published an article declaring Romney as the winner:

Romney Seen as Winner; Obama Faulted for Flat Debate

For me, this was a great example of what visuals can achieve in terms of brand image. I always tell our clients that design is important, that the creative expression of their brand can provide a perception of greater credibility. Design and visual expression can add authority to the brand, change erroneous views, build recognition, create joy or fear, or instill feelings of security or even nostalgia. In this case, it was not a photograph or animation or video or even soundtrack. It was a subtle nod of the head, a glance down or away, a telling look of disgust, a smug shrug of the shoulders.

Will Mr. Romneys performance be considered a critical success and box office bust? The debate was viewed as a success for Mr. Romney, but will that be only through the eyes of news anchors and journalists? Or will it carry through to a larger audience of voters? In time, Im sure the polls will share more. But one thing is certain: If brand and marketing is about gaining access to eyeballs, both candidates certainly managed to do that. About 40 million viewers were expected to tune in; as it turned out, 60 million watched. And those eyeballs were watching; they captured images that resonated, they formed opinions and lasting perceptions that will no doubt have some impact on the election, as well as our views on both the Republican and Democratic parties for many years.

What Romney and Obama’s Body Language Says to Voters

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Posted in Brand Identity, Business, Customer Experience, Marketing, Media, Social Media | 1 Comment »

 
DWAYNE FLINCHUM
Founder & President,
IridiumGroup Inc.

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