March 24, 2011 by Uwe Hook

Facebook is starting to join the real-time conversational marketing bandwagon. Basically, ads will be delivered based on the declared intention of the user. Ad Age explains:
“Users who update their status with “Mmm, I could go for some pizza tonight,” could get an ad or a coupon from Domino’s, Papa John’s or Pizza Hut. (…) ”
With real-time delivery, the mere mention of having a baby, running a marathon, buying a power drill or wearing high-heeled shoes is transformed into an opportunity to serve immediate ads, expanding the target audience exponentially beyond usual targeting methods such as stated preferences through “likes” or user profiles. Facebook didn’t have to create new ads for this test and no particular advertiser has been tapped to participate — the inventory remains as is.
A user may not have liked any soccer pages or indicated that soccer is an interest, but by sharing his trip to the pub for the World Cup, that user is now part of the Adidas target audience. The moment between a potential customer expressing a desire and deciding on how to fulfill that desire is an advertiser sweet spot, and the real-time ad model puts advertisers in front of a user at that very delicate, decisive moment.”
Could this work? Isn’t that finally the transformation of advertising from attention to intention? VRM has finally arrived? Hallelujah?
Sadly, no. Facebook tries to find a business model that can help them sustain their valuation of $85 billion. Or, is it $4.5 gazillion by now? Fact is, the Facebook ads perform abysmal. Brand pages and apps are doing okay but Facebook needs to make most of their money from ads. So, they are scrambling. Problem is, the contract between Facebook and each Facebook user is broken. It’s not broken enough for people to leave Facebook. We’re just too lazy to head over to another network. It might happen one day. But not in the foreseeable future. The platform is too user-friendly, too big and too embedded into our daily lives.
Facebook is the new Microsoft
We didn’t like to use PC’s, always envied the Apple users. We didn’t really care for another version of Office. But the rest of the world was using it. Microsoft was omnipresent and we had no alternatives. That’s how people feel about Facebook. John Battelle thinks people will game the system. I don’t really see it as gaming, just another way to look for special offers.
But that’s not real challenge.
Facebook has only one asset: You & me, and the community we create. In order for Facebook to command any decent valuation, all of us have to be comfortable with the deal. And the deal is that Facebook sells our data, our personas to marketers. This requires an open, truthful and transparent relationship between Facebook and us. Have you ever thought of Facebook as an open, truthful and transparent company?
Exactly.
The Intention Economy is built around more than transactions. Conversations do matter. Relationships as well. So, do reputation, respect and trust. To think Facebook can be the mediator in an intention economy is, to say the least, questionable.
Category: Uncategorized
Tags: ad age, authority, conversational marketing, Facebook, intention economy, microsoft, respect, trust, truth, VRM
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February 8, 2011 by Uwe Hook

For the longest time, the marketing challenge was: How do we sell the product we have? How do we come up with great positioning? How do we come up with a good message? How do we find the people that find our message and product/service relevant? Trying to answer this question has created an enormous marketing and advertising industry.
What if we reversed the paradigm?
What if we asked: How can we deliver a product/service that people want? We could stop the insane guessing game all of us are engaged in. We wouldn’t have to battle for the attention of people; they asked for our attention. That’s the basic idea of Vendor Relationship Management. I’ve written many times about VRM before.
What baffles me is that many people believe this is an utopian dream. “It’ll never happen.” They tend to forget, it’s already happening. Not in the marketing world yet but it happened to the publishing industry. The desire of people to get customized media whenever they want it lead to the sale of Newsweek for $1. And the sale of Huffington Post for $315 million. It changed the recording industry forever. Or, rather, wrecked it. People revolted against getting their information top-down. They wanted customization, filters and control. It was a quick transformation because Web 2.0 made publishing so easy for everyone.
What makes you think the same won’t happen to marketing and advertising?
Category: Uncategorized
Tags: Advertising, huffington post, Marketing, newsweek, stakeholders, vendor relationship, VRM
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January 21, 2011 by Uwe Hook
Consider this:
- Population of India: around 1.2 billion people
- 81 million Internet users (Source for above two facts)
- Facebook: 21 million (as of July 2010) Twitter: 3.5 million (Source)
- Mobile user base: 270 million
- Mobile internet makes more than 50% of total internet usage and number of mobile phone users is more than 7 times higher than the number of people accessing internet. (Source)
Not sure how valid these numbers are since I heard many variations. Frankly, it doesn’t really matter. One thing is clear: It’s early. Many people told me that their digital marketing budget hovers around 2% of the overall marketing spend. 3G is not common yet.
In many ways, the environment resembles the US digital landscape around 2004-2005. That’s an amazing opportunity for Indian start-ups, media companies and agencies. They can learn from the mistakes we made in the US and Europe. The toolbox for brands is much bigger and better developed compared to 2005. There’s a vast library of case studies – successes and failures. There are many people that have been through the digital wars of the last 10 years than can help Indian marketers make their case for bigger budgets, for a seat at the table, for becoming the centerpiece of any digital marketing initiative and for transforming companies into social businesses.
These are exciting and often breathtaking times. While I encourage Indian marketers to get as much insights from their European and American counterparts, I also urge everyone to create their own path.
“Do not follow where the path may lead. Go instead where there is no path and leave a trail.”
-Ralph Waldo Emerson
I’ve met numerous innovators, bright minds and passionate people during Click Asia Summit 2011. The world better listen up. We’ll hear from them very soon.
(Above is the presentation I gave about Social CRM and VRM this morning.)
Category: Uncategorized
Tags: click asia summit, clickasiasummit, india, Social CRM, VRM
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January 4, 2011 by Uwe Hook

Ok, let’s get this out of the way: I was a big proponent of niche networks and thought they would become more important than Facebook/Twitter and all the other global platforms.
I was wrong.
I still believe niche networks are the future but there’s a major underlying problem.
It’s another thing we have to take care of.
The last few weeks I’ve experienced an amazing uptick in Quora participation, I get too many emails each and every day letting me know someone new is following me. There is Path. I love Goodreads. And, this endless list of hundreds of new platforms. Too much. Everybody wants me to contribute. Add content. Participate. While I work, have a family, share content on Facebook and Twitter.
Enough is enough.
We don’t need more platforms, sites, log-in forms and passwords. What we need is a better way to share our information. That was the idea behind Facebook Groups. But it went nowhere. Because nobody saw the benefit of investing a lot of time in developing and curating your own groups. More settings, more hassle, more hard work.
What we need is ownership of our own data
I want to build my own experience where I can share the favorite moments of my life just with my kid. A scrapbook of her fathers’ life. I want to be able to create a network on the fly that enables me to share very personal experiences with a limited amount of friends. It can be 4. It can 60. It’s up to me, not Path’s limitation of 50 friends. I want to share my running experiences with my running friends. My concert experiences with my concert friends. My wine experiences with my fellow winos. But, the last thing I want to do is to sign-up for another platform. Learn another UI. Remember new passwords.
There’s only one solution: data portability. As I’ve written in a few posts before, we need to own our own data. Control our own destiny. And share this data on our terms. This will allow us to develop new, personal platforms that enable each one of us to build micro-networks of shared interests. Create my own destinations, completely independent from anyone.
Let’s face it: That’s a huge problem for Silicon Valley. They rather focus on incremental innovation. Put lipstick on the pig of data exploitation (Ahem, Foursquare, anyone) and continue to make money off all of our data. And they will continue to push the agenda of creating thin value by adding more features and ‘oohs’ and ‘aahs’.
But, that’s the past. The future lies in giving all of us control of our data. And release the real power of innovation.
Category: Uncategorized
Tags: data exploitation, Facebook, facebook groups, goodreads, micro networks, niche networks, path, quora, silicon valley, VRM
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December 31, 2010 by Uwe Hook

This post appeared first on Jack Myers’ MediaBizBlogger site.
1. No more “This is the year of mobile.” 2010 was the year of mobile.
2. Privacy is not dead. People might not care that much about privacy. But Washington does. Just like the banks, we weren’t able to regulate ourselves or trim at least the excesses.
3. The noise is deafening. We need more signals.
4. It’s not about what you know. It’s about what you share.
5. Location at its current state is overhyped. Future location platforms/tools are under hyped.
6. Own your own domain. Don’t buy into the notion that being on Facebook is more important than developing your own content on your own platform.
7. Most people that recommend bright, shiny objects (Groupon, Foursquare, etc.) never used the platform/tools and just hype it because everybody else hypes it.
8. Media people are just like the rest of the population: They never click on banners.
9. Quora is powerful. Explore it.
10. Getting out of the advertising echo chamber is essential to understand the future of media and marketing.
11. Ever heard of VRM? You should. It’s just a Google query away.
12. I’m an idiot. That’s a perfect place to start from. When I’m open to the fact that there’s much to be learned. That my first answer is not the right answer. And, definitely not the best one.
13. You are what you consume. That goes for food, good wine and cheap blogs. Make sure to digest only the best. It will make you a better person.
13 ½. The Dodgers suck (Well, I knew that since they never delivered a World Series since I moved to Los Angeles in 1996)
13 ¾ Travel is under-rated. I knew that, too. But I wanted to put this on the list in case I’m ever tempted to say no to a trip.
Category: Uncategorized
Tags: 2010, 2011, location, mobile, quora, sharing, VRM
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