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Cheap encounters

Not everything was better years ago but some things were better defined. Clarity has become a rarity. A good example: relationships. Decades ago it was clearly defined. A relationship was between two people who liked or loved each other. Even without engagement ring or marriage contract, a relationship was nothing vague. A relationship was a well-defined thing with clear rules and a precise goal: improving the relationship over time. Before you started a relationship, there were declarations. We defined our expectations and were ready to hear the same from the counterpart. Besides these defined relationships, we had cheap encounters: We had something but no real ties that held us together, many exit doors in close vicinity. Nobody wanted to define expectations. More booty call, less duty call. That’s what we called a cheap encounter.

We’ve become used to this. Today we call it network.

Everyone does it with everybody. And it starts earlier than we think. Do brands really have a deep connection with their customers? Why do brands address me with my first name as if we just had a beer together? Do we know each other? Why do brands think it’s better to become my buddy than treating me with respect as a paying customer?

Sure, when you ask those questions you sound like an old fart. Nobody talks about basic politeness and a healthy distance. A healthy distance that would help us identify forced and real intimacy much easier. All these networks nobody claims to be able to live without, support the idea of social promiscuity. That leads to many cheap encounters but rarely to real relationships.

Global Relationship Economy

The word “Network” transformed into an empty word in the last few years. Scientists, database modelers and engineers defined network precisely. And enterprises started to understand that inflexible, hierarchical organizations that see themselves as a walled garden have problems adjusting to a new world of complex and collaborative work structures. Old enterprises were successful because they had everything under control. New enterprises are successful because they know who to work with others to solve a problem.

The last few years made clear that new enterprises got it right: Energy, IT, Research and Innovation: You can’t survive without  cooperation, collaboration and co-creation. The walls of the walled garden came tumbling down. The old control economy will be replaced with the new relationship economy. Are we ready for that?

Looking for friends

Let’s pose the question differently: Are we engaging enough? Are we open to a cooperative working environment? Are we ready for relationships?

Actually, the word ‘Network’ is for most people a throw-away word, mostly used to avoid the answers to above questions. The Web made everything so easy. So much interactivity, so many opportunities, often too many opportunities.

Are we looking for friends on Social Networks?

I know the phone numbers of my friends, know where they live and have a beer with them once in a while. I don’t need a friend confirmation before contacting them. Those relationships are transparent, in almost every way.

I know the strengths and weaknesses of my friends, their likes and dislikes, their destination. I invest trust in and have respect for them. Sure, it’s a pretty big risk. I’m more interested in them as a holistic person, less in one of their characteristics. Human beings are more than the sum of ‘likes’ and favorites. And I know I can have in-depth discussions with them, advancing our relationship. These relationships don’t need to be dissected by my preferences and categories. There’s one rule in life: If it’s not for real, there will be a form you need to fill out. 500 million people have done so on Facebook to present themselves to the world. The results (just like government forms): Nothing. Or almost nothing. Instead of a blooming relationship economy, we now have a new form of social bureaucracy. Voluntary. And very 2.0.

Quid pro quo

To be very clear: Not all relationships on Social Networks are equal. And, let’s please stay away from relationship therapy, talking about relationships until there’s nothing to talk about. Social engineers work on their relationships until they deal with a complete wreck. That’s based on the crazy idea one can plan human relationships, direct them, construct them – until they conform with their view of the world. Leaving relationships to the arsenal of manipulation.

Cooperation and collaboration despises manipulation because they always ask: What can you offer me? What can I offer you? How can we create something together we wouldn’t be able to do alone? Cooperation is an evolutionary principle. We band together and 1+1 turns into 3. Nothing new or revolutionary here. Romans used the phrase “quid pro quo” to express this sentiment. A relationship is not a self-service kiosk.

A relationship is not a present. A relationship is a business. A deal. Quid pro quo.

Oh, I’m sure many readers will shake their head in disgust. At least, I hope so. Maybe they start to question the value of 14,453 global friends while there’s no time to meet a real person for lunch. Do we create peace, improve justice and new technologies with our network friends? Or are we just trying to avoid the real work? We could act, do and work together. Instead, we’re developing a fetish. That’s easier. And meaningless.

Quickies and Wikis

That doesn’t mean networks and wikis are useless because that world is is maturing. We see two separate network trends: the Facebook world and the Wiki world. On one hand you have cheap encounters (quickies), on the other hand constructive cooperation. Here self-indulgence, there collaboration.

The Wiki world works together because they extract value. Many enterprises use these tools because they experience the benefit of working together, not against each other. This is not the old team where everybody hid behind the other person. The Wiki world goes beyond that thinking: Innovative projects happen because the old control model ended in the trash. The other department/division/company is not an enemy, they are partners.

Quid pro quo. The network matures.

It might be also a sign of our recessionary times. When people prosper, they focus on themselves and don’t see any benefit in working with others. It’s easier to complain, criticize and bitch about others. Cooperation in this world feels like capitulation. A defeat. We can beat them by merging or owning them. But working WITH them? Please.

Cooperation/Co-Creation and Collaboration has increased in the last few years. It might be the tough times or just the plain insight that enterprises don’t have to do everything themselves. They can become better companies and more competitive when working with others. In the old days, enterprises were forced to collaborate. Now they want to.

Explanations

Collaboration as a basic element of economic activity has been researched by academia for a long time – game theory as an example. Home Cooperativus is far superior to Homo Oeconomicus. Cooperation and collaboration grows up and becomes just a normal part of the business routine. A good sign. But as long as we talk about networks with this quasi religious undertone, we still have a lot to figure out. Homo Cooperativus is not a new form of humankind, a new us. We’re still driven by our own motivations and desires. We just know that we have to cooperate and collaborate to achieve those. The old term ‘relationship’ is filled with moral implications, always implying there are no selfish motivations. That’s why we read so much crap about the new way of working together, Office 2.0, Enterprise 2.0, co-creation. Nobody wants to be honest and admit the one reason for the advent of collaboration: It benefits us.

Until a few years ago, cooperation meant attacking each other (Call it Mergers & Acquisitions.) Those translated in conquering market shares, not developing new markets. A successful merger was one where the winner eliminated the last traces of the losers corporate culture. Often not motivated by a sense of business. Motivated by legacy emotions.

That doesn’t work anymore. Structures are too complex. Employees too confident. Markets too saturated. Forced marriages were replaced with marriages of reason. We should be happy about that.

That forces all parties to adjust to various corporate cultures. They have to negotiate, find a consensus and then decide: What is the value for each of the stakeholders? How much of my identity do I have to give up to succeed? Answering questions like that lead to clearer rules, clearer rights and duties. If you want to have a relationship, you have to declare your self. Clear and explicit.

Results

Enterprises are trying to break through the walls and silos, expanding the definition of relationships. Collaborative efforts become the norm of corporate culture. The groundswell has just begun, forcing enterprises to rethink everything. I’ve worked in the agency world for almost 20 years, often more involved in a client culture than my employers culture. More often than not, feeling more loyalty towards my work than my boss. Good relationships center around content. Not form factors.

Still, many people have problems sharing their knowledge. One of the skills we learned in the corporate world was to hide our expertise and knowledge from competitors and internal divisions. That’s was a key to survival. We all know those little organizational piranhas. Ready to digest any little piece of knowledge and spreading it around the organization, poisoning the culture. Didn’t we get punished for collaboration, being too open for cooperation? And how often do terms like “Team” and “Group” equal “Buddy System” and “Organized Nothingness”?

That’s the trick: Eliminate organizational piranhas, the buddy system, the “relationships” that kill an enterprise. These little games have to stopped before they start. Fact: If your organization lacks cooperation because of internal parasites, your business will suffer. That’s a leadership problem. Maybe the most important leadership challenge for years to come.

So easy and so hard. Cheap encounters sold as relationships are still running the network. As relationships, these encounters are nothing better than a fling between teenagers. We’re still far off from transforming these connections into 1+1=3 relationships. That’s the only result that counts.

A relationship between adults.


Hear me roar

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Actually, just speak.

Wednesday, June 23, 8 am PT, 11 am ET

A conversation with Gail Collins, Internet analyst at BGC, a firm with $1.2 billion in revenue and offices in 19 cities. His coverage includes GOOG, YHOO, AMZN, EBAY and others. Every Wednesday at 11 am ET, Gail hosts an investor conference call.

In this week’s installment, we will talk about Facebook as the next chapter in targeting failure, lessons for business leaders that can be learned from World Cup, the difference between efficiency and effectiveness and the problems with digital marketing. Should be an interesting hour and I hope you can join us.

Please register here to the dial-in number. Hope you can join us.

https://secure.confertel.net/tsregister.asp?course=5074015

The problem with Digital Marketing

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I’ve seen TV commercials that made me laugh. The majority of radio commercials annoy me. Some print ads are rather interesting, most of them purely forgettable. The range of emotions when experiencing “traditional” advertising ranges from highly entertained/intrigued to annoyed. I was never angry a TV commercial interrupted my show, maybe annoyed, but not angry.

The range of emotions when experiencing “digital” marketing ranges from barely entertained to angry. Angry at the pop-ups, the take-overs, the obnoxiousness of advertisers to push their message right in front of my face.

Why is there such a huge difference in emotions between “traditional” and “digital” marketing?

Two reasons:

1) We have a contract with traditional media: You serve us ads and the content will be free/dramatically reduced in price. Sure, we try to do our best to get out of that contract (DVR, radio podcasts) but in general we’re fairly happy with the partnership.

No such contract exists between us and digital media. We don’t see ads underwriting anything. Does an ad on Facebook make the site better? Nope, it cheapens my experience. Does an ad on Yahoo’s homepage improve their content? Not that I know of, it just makes me want to leave the homepage as soon as possible. Marketers haven’t found an airtight value proposition for consumers to see ads as an underwriting proposition. Every time a brand serves up an ad, it reminds us that there’s no contract. No relationship, no reason not to get angry.

(And, most of the web ads are intended to be clicked, turning Digital Marketing into a whining and begging contest, turning even more people off.)

2) TV, Radio and Print are entertainment channels. Sure, there’s some educational and informational content but we use these channels to entertain us.

Digital is an entertainment channel. And an information channel. Most importantly, digital is a communication channel. Depending on your tasks at hand, the definition of digital as a channel changes by the minute for each of us. While my visit to Forbes.com might be my kind of entertainment (sad, I know), others are looking for information on the same site or want to communicate with other readers about a common topic. The reception changes dramatically in whatever mode I am:

- Information Seeking: Don’t even try to serve me an ad. I don’t want to see and hear it. I’m focused on my own information needs. Your intrusion makes my task at hand harder to accomplish.

- Communicating: Don’t you know the two of us are talking? Why do you have to bother us in the middle of a conversation? What do I have to do to get you out of my world?

- Ready to be entertained: What you got? Something funny? Something interesting? I’m watching a show/video but I don’t mind discovering something better.

Search Engine Marketing continues to be successful because it answered the need for information with relevant results. Banner advertising never took off because the Web is a hybrid channel and we have to guess constantly what mode people are in. Inserting messages into a communication and information environment doesn’t work. So far, it only works in an entertainment environment.

If digital marketing will ever grow up, it needs to develop a mutually beneficial contract and find new ways to message to people when they want to be informed and/or communicate. That’s why companies like Facebook and Twitter should take a step back and reconsider their advertising models. Applying a broken digital advertising model to a new platform still equals apathy, non-performance and angry people.

When you’ve figured out a way to shift digital advertising emotions to the range of traditional advertising,  please let me know. I’ll bet my house on you.

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A friend of mine lost his job last year, his mother was diagnosed with cancer and he had to fight off foreclosure threats. A very rough year. What did I see on his Facebook page? Motivational quotes, pictures of smiling people on the beach, pictures of home-cooked food. The occasional negative expression “That was a rough day.” with 5 ‘likes’ and 2 supportive comments of his social graph.

We live a 2.0 version of “The Stepford Wives” on Facebook. Everything is so colorful, so friendly, and so motivational. We’re all just friends, ‘liking’ everything we see and busy creating an identity outside of our real lives. Nobody reveals their real self on Facebook. Actually, nobody reveals their real self on Social Networks. We play a part in this theater we call Social Networking.

Have you ever seen anyone posting “Unemployed and looking for a job” on LinkedIn? Of course not, people are becoming consultants or come up with other fancy titles to protect their personal brand. Most people understand how to shield their real self from the outside and control their own brand.

Mark Zuckerberg’s declaration that privacy is dead, is just another sales pitch. Privacy is alive and kicking. It’s being redefined as we speak. Not from Facebook. Each one of us is redefining privacy. We select what to share. We select who to share it with. We define our own brand. And we like brands that bolster our image, give us more personal brand juice. I might watch each episode of “The Bachelor” and tune into “Charlie Rose” once a year. As a 40ish entrepreneur, what will I “Like” to protect my brand image?

The media industry loves to put people into boxes aka segments. Behavioral Targeting 1.0 promised to deliver relevant messages to targeted audiences. I’ve tested these campaigns for years and they never delivered on their promise. Facebook’s Behavioral Targeting 2.0 will fail even more miserably. At least, Behavioral Targeting 1.0 is based on real user behavior, amassing data about sites I visited, trying to find a common denominator (segments) and communicating with them through relevant messages. Facebook believes what people express in their social graph is what people really think, who they really are. And that my friend, is just not true.

As an industry, we have to come to grips that the end of advertising as we know it is near. Human beings are unpredictable. We don’t want to be put into boxes. We don’t want to be targets, segments, boxes. We are individuals. Most of the time, we don’t want to hear from advertisers. However, there are times when I can’t wait to hear from brands.

Imagine this scenario: I want to go to Europe with my wife for a week. London, Paris and Amsterdam. I want to fly non-stop , stay in 3+ star hotels, eat in one of the 50 best restaurants in the world, celebrate my wedding anniversary with a special evening and my budget is $5,000 for two. Currently, it will take me at least 20 hours to gather all the necessary information through branded sites, review sites and connection with my Social Graph. What do you think is more effective?

Scenario A: The first thing I decide on is a flight. I go to Bing, check out individual airlines (KLM, Virgin Atlantic, British Airways). I decide to go with Virgin Atlantic. Because I visited KLM and BA but didn’t convert, both brands will continue to message me even though my flight is booked and I’m not interested in any offers anymore.

Scenario B: I send out a personal RFP to the world, expressing my specific intent to travel to Europe, including all details mentioned above. Nobody has to guess if I’m still in-market for European flights and accommodation. They don’t have to target me with sneaky tactics or amass data to improve their guessing work. All brands have to do is to develop customized proposals that deliver on my parameters.

Another example: Many think the future of location-based advertising is conquest advertising. I check into a bar and the competition sends me an offer trying to lure me to their establishment. How about I declare my intent to brands (”Lunch for two in 15 minutes”) and for the next 15 minutes restaurants can send me offers? More powerful? Absolutely.

A growing concern with privacy and data protection will speed up the development of tools that will allow people to engage brands on their terms. The targeting guesswork will disappear and advertising will retreat from its brute tactics of the last decades and return to its roots: Being charming, being entertaining, persuading people into changing their behavior.

Update: Great comment by Jim McCarthy. Social

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While the Facebook Privacy debate rages on, we have to accept a few facts:

  • Facebook is making a play to own identity on the web.
  • Not only that: Facebook is making a play to own everything associated with identity on the web.
  • Facebook is banking on a value exchange between sites and their own database: We give you site traffic and data, we keep all the data to build a semantic map of the Web.
  • We are entrusting personal data to a company that has a problematic record of dealing with user privacy.
  • The majority of Facebook will continue to share information. Why? Because we want to share information.

Does this mean Facebook will continue to be the de facto Social Web? Absolutely not.

Facebook presents a huge opportunity and promise for brands: A data pile of personal information that should enable marketers to deliver more relevant and targeted advertising. Sounds like Behavioral Targeting 2.0. This model implies that people want to receive more targeted and relevant messages. And that’s where the whole model falls apart.

Most of the day, people want to be invisible to advertisers. They want to read or entertain themselves without any disruption of the advertisers. And there are times when I want to hear from advertisers or would love to have a comprehensive profile I want to share with companies. During that limited amount of time, I would love for Acura to know what kind of car I’m looking for and have an insight into my purchase history to develop a personal proposal for me. I would love for Travelocity to know that I’m looking for a hotel close to Heathrow Airport.

We just don’t want this information stockpiled, used against our wishes and used against us during a time when we don’t want to hear from brands. We don’t want information that we shared with one company sold to another company to deliver more disruptive messages.

What we want is to share our digital DNA on our terms. Not on the terms of data mining companies and marketers. On our terms.

Which leads me to the second reason why this model won’t work: My Facebook profile is not the real me. Nobody is the real self on Facebook. We’re revealing a very small part of our real self. Nothing more. Most people stay away from politics or religious topics. We never hear from major conflicts in anybody’s lives. Facebook reminds me of kid shows like Cailou or Berenstein Bears. Sure, there are some minor conflicts but, overall, we’re doing great and everything is awesome. We’re all playing a part in the Facebook world, just like the avatars in Second Life. How do you expect to deliver relevant messages to me if you don’t know the real me?

Last but not least, if Facebook becomes the Social Graph, innovation will stop. Imagine Internet Explorer as the only game in town. No Chrome, no Firefox. Only IE allows you to access the web. If that’s scary, think about Facebook being the only Social Graph in town. No innovation. Stagnation. The Social Web would end before it even really started.

That’s why we need for people to claim ownership of their data. Allow them to store their personal data in a safe and secure space. Share any data on their terms:

  • Dental records with their periodontist and general dentist, avoiding lengthy approval cycles and wasteful document exchanges.
  • The intent to purchase a car with preferred brands. Allow them to send personal proposals. Eliminating the guesswork and sneaky, behavioral tactics of marketers.
  • Their food preferences and budget with restaurants through a location-based application. Allow restaurants to send time-sensitive offers based on personal profile.

Advertising, as defined by Wikipedia, is a non-personal form of communication intended to persuade an audience to purchase or take some action upon products, ideals or services. The current landscape of advertising feels more like a battleground and not a persuasion lounge. We have done the same thing over and over again. More efficient. More relevant. More targeted. It’s still not working.

I don’t know about you, but I don’t really see the benefits of living in a world where brands constantly have to fight for and with customers. I’d rather live in a world where brands and people co-create and collaborate. And people share what they really need. On their terms. And advertising could get back to its core business: charming and persuading people.