Campaign marketing is increasingly seen as background music and 'tuned out'. No surprise really that in a world where all brands push 'play' without consulting consumers that the outcome is a cacophony. It's one that consumers increasingly want to tune out, and today they have the tools to do so. From their cultivation of banner blindness , use of browser plugins like Adblock, through to enlisting more-aggressive privacy settings and skipping adverts at 8x speed. They simply don't want your message pushed at them and are taking steps to control the signal-to-noise ratio of useful vs. irrelevant data. Marketing must respond with a new quality in the relationship or risk being ignored.
Traditional marketing organisation structures are failing touchpoint innovation. With marketing teams largely organised by channels such as search, display, social, and customer care, there is little incentive to think laterally about problems and opportunities across the group.
Emerging touchpoints often redefine and cross channel boundaries, which can quite quickly cause problems for teams with restricted views, budgets, and personnel. Take the emerging touchpoint of interactive video, for example, which turns video content into a microsite and has implications on eCommerce, search engine tactics, social, and content marketing. Aside from process and budgeting issues, many brands find that staff members who have worked together for years find it difficult to break out of their habits when asked to embrace and drive the 'new'.
So what does this emerging touchpoint talent look like? Along with core qualities of entrepreneurial drive, creativity, and the ability to work flexibly across direct and virtual teams, there is also a skills profile that suits this multifarious role. Emerging touchpoint staff members have a wholly different profile from staff members in your ROI-driven, core marketing machine, who typically have a single specialism. In 1991, Tim Brown, the CEO of Ideo, described this flexibility as a T-shaped skill set. While he intended it to be used for collaboration across roles, it's also a useful way to think about a broadening of functional skills, resembling more of an "M" shape. See the figure below for an illustration of this new balance with greater emphasis on multiple skills.
Some exotica for the end of the year: Yesterday I did an interview with the French publication NouvelObservateur on Google's recent robotics acquisition Boston Dynamics. Google has been acquiring robotics companies hand over fist during 2013, and it's quite a reveal of how they are planning for the Google of tomorrow - something of interest to almost every brand. Here is my short take:
Our advertising forecast shows that online video for marketing is big business and is only going to get bigger. In Europe, the CAGR for total ad spend from 2013 to 2018 is 2.19%, but for online video ad spend, it is a staggering 18.83%. The US shows a similar (albeit smaller) skew, with total ad spend CAGR of 4.49% and video at 22.39%.
Video, then, is a big deal, but most marketers aren't realizing the full potential of the medium. Approaches to video online are broader than simply grabbing 30 seconds from your TV commercial and sticking it on an online display network. Broadly speaking, there are three approaches to video:
Linear video — static. Pre-rendered content, where the video plays from beginning to end. It's just like TV adverts or the majority of video content marketing on the Web.
Linear video — dynamic. Where video content is customized per user or segment, often at run time. This approach interacts with consumers' data (e.g., social profile information) and/or context (e.g., location) but does not allow users to directly interact with the material when playing. A great example of this is one directed by Jason Zada and Jason Nickel from production company Tool and is called “Lost In The Echo,” which pulls in pictures from a user’s Facebook page, superimposing those snaps with photos that characters in the video mourn over.
Brands deals with human needs and wants. Leo Burnett, the advertising executive, said: "The work of an advertising agency is warmly and immediately human. It deals with human needs, wants, dreams, and hopes." Smart brands know not to initially focus on what they have to sell but rather on how it meets consumers' needs. If you can address a strong consumer need, you will get those consumers to act. If you can get them to act, then you have opened an all-important channel of dialogue.
The fulfillment of consumer needs, however, is not always a linear hierarchic approach as proposed by Maslow and effectively debunked by Forrester analyst James McQuivey in his book Digital Disruption. Human needs take place simultaneously and are fuelled by a mix of short- and long-term motivations — some conscious and some unconscious. As a student, I would sometimes forgo food on a Friday so I could afford to go to a concert that night; or consider a Spanish couple postponing the short-term comfort of a much-needed upgrade to their central heating so they can put their child through the next year of college.
The pyramid diagram below shows how the foundation of this needs-based thinking is built from the ground up, from customer descriptions through to the technology and KPIs applied.
While I was undertaking my research for in-stream audio, one interview couldn’t be scheduled in time before the cut-off date for editing. It was with a company called Spectrum Medya, which launched Karnaval.com, a digital radio platform, about a year and a half ago. Spectrum is based in Istanbul – the intersection of where the East meets the West — and in many ways, it's charting where traditional radio meets digital audio. Karnaval has a hugely popular Internet radio stream and was recently selected by Wired Magazine UK as one of the 100 hottest startups in Europe.
I’ve included a transcript of my interview with Ali A. Abhary, Spectrum's CEO (Twitter: @alitalks), below for you to see how a publisher is handling and viewing these changes in the audio ecosystem.
Q. Tell me about your service.
A. Spectrum Medya is owned by private equity fund the Actera Group, which joined two and a half years ago. At the time, the Spectrum consisted of five terrestrial radio station networks across 20 to 30 different cities in the country. Turkey had state-owned broadcasting until the '90s, until deregulation, which is when we got chance to really steer two of the oldest radio stations in Turkey under our own control.
Q. How was the ad business for traditional radio before digital?
In 2002, the zeitgeist orchestrator David Bowie opined, “Music itself is going to become like running water or electricity.” A few years later, in 2005, the futurists Gerd Leonhard and Dave Kusek proposed “music as water” in their industry-shaking book, The Future of Music (A Manifesto for the Digital Music Revolution).
The metaphor was simple — music would flow on demand, like a utility, to people's home hi-fis and portable music players. Subscription access to "all" music was the approach that ultimately ended up with no more ownership of physical or even digital copies; CDs, mp3s, and the other ground-bound trinkets would no longer be necessary. Even in my own behavior, I see this change — where once I’d spend time ripping my CDs and loading up my 160GB iPod, now I simply curate music, like my Boxing playlist, in the cloud via Spotify.
Eleven years later, Bowie’s prediction is coming true and streaming is progressing at speed. In metropolitan Argentina 1 in 3 consumers are listening to streaming music - evenly split between mobile and computers (desktop, laptop, tablet). In France 15% of those we surveyed streamed on a computer but a whopping 27% used mobile. In fact this trend to streaming via mobile is likely to be one that will continue worldwide and today in metropolitan regions of Hong Kong and Mexico, as well as South Korea mobile has already considerably overtaken computers as the preferred listening method.
I was lucky enough to spend some time in Kerala working with Indian classical musicians many years ago. I first arrived during the monsoon season, and along with the world-class thunderstorms that I watched from a thin rubber bath mat on the roof, I could see the jungles getting greener and the people happier. For thousands of years, monsoons have had significant economic, emotional, and cultural importance in India. Rain determines whether there will be food to eat, and monsoon season typically used to signal the long-awaited return home of soldiers to their wives. Classical music in India, unlike its Western counterpart, is always very attuned to time, place, and mood. Rāgas, the name given to Indian classical forms, have rules to help guide improvisations in the moment and the monsoon season has inspired the Malhar group of ragas, a formulation specifically attuned to the emotions, environment, and context of the monsoon season.
Marketing and advertising, like Indian music, has always been contextual. As far back as 1867, billboards were being rented by marketers in dense urban areas outside train stations, and even earlier, direct mail took demographics into account to determine which regions and people to deliver flyers to. The truth is, though, that targeting brush strokes were broad, with flesh and bone staff doing a much better job of understanding a moment, a customer’s intent, and what the best thing to say would be.
In my new report, "Western European Social Media Marketing Forecast, 2012 To 2017," I'm exploring some of the drivers and inhibitors that will impact social media marketing spending in Europe over the next 5 years. From growing adoption amongst consumers and ever more devices integrating with social networks, to the uncertainty ushered in by the coming European data privacy legislation, I'll look at how these factors will influence the willingness of marketers to spend on social media marketing.
The good news is despite the economic headwinds across Europe, spending on social media marketing is still forecast to rise ― from €1.4 billion in 2012 to reach €3.2 billion in 2017, reflecting a 17.6% compound annual growth rate (CAGR). As social media marketing in Europe heads towards maturity, the pace of growth slows somewhat but the trend continues upwards. We're also forecasting the percentage of online users who are present on social networks in Europe to continue to rise, from 63% in 2013 to more than 70% by 2017, so if you thought social had already reached a point of saturation, think again.
In our new report, Extend Your Marketing Into Games, we take a closer look at how marketers can take advantage of opportunities within games. From dedicated consoles to mobile devices and in browsers, games are a multi-platform stage for brands to get in front of consumers.