Category: marketing | 營銷 | 마케팅 | マーケティング

According to the AMA – Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This has contained a wide range of content as a section over the years including

  • Super Bowl advertising
  • Spanx
  • Content marketing
  • Fake product reviews on Amazon
  • Fear of finding out
  • Genesis the Korean luxury car brand
  • Guo chao – Chinese national pride
  • Harmony Korine’s creative work for 7-Eleven
  • Advertising legend Bill Bernbach
  • Japanese consumer insights
  • Chinese New Year adverts from China, Hong Kong, Malaysia and Singapore
  • Doughnutism
  • Consumer Electronics Show (CES)
  • Influencer promotions
  • A media diary
  • Luxe streetwear
  • Consumerology by marketing behaviour expert Phil Graves
  • Payola
  • Dettol’s back to work advertising campaign
  • Eat Your Greens edited by Wiemer Snijders
  • Dove #washtocare advertising campaign
  • The fallacy of generations such as gen-z
  • Cultural marketing with Stüssy
  • How Brands Grow Part 2 by Jenni Romaniuk and Byron Sharp
  • Facebook’s misleading ad metrics
  • The role of salience in advertising
  • SAS – What is truly Scandinavian? advertising campaign
  • Brand winter
  • Treasure hunt as defined by NPD is the process of consumers bargain hunting
  • Lovemarks
  • How Louis Vuitton has re-engineered its business to handle the modern luxury consumer’s needs and tastes
  • Korean TV shopping celebrity Choi Hyun woo
  • qCPM
  • Planning and communications
  • The Jeremy Renner store
  • Cashierless stores
  • BMW NEXTGen
  • Creativity in data event that I spoke at
  • Beauty marketing trends
  • Kraft Mothers Day marketing
  • RESIST – counter disinformation tool
  • Facebook pivots to WeChat’s business model
  • Smartphone launches
  • Chinese diaspora + more stuff

    Chinese diaspora

    China’s Diaspora Policy under Xi Jinping – Stiftung Wissenschaft und PolitikChina estimates the number of people of Chinese origin outside the People’s Republic to be 60 million. Beijing considers them all to be nationals of China, regardless of their citizenship.  Xi Jinping views overseas Chinese as playing an “irreplaceable role” in China’s rise as a world power. Beijing is working hard to harness overseas Chinese resources for its own goals in the fields of economics, science and technology, as well as diplomacy and soft power.  Beijing also expects people of Chinese origin in Germany to deepen rela­tions between China and Germany. But not only that: As “unofficial ambassadors”, they are also expected to spread China’s narratives to the German public, defend China’s “core interests”, and help with the trans­fer of knowledge and technology to China. – This explains foreign police stations to ‘help the Chinese diaspora and considers Singapore to be a ‘Chinese state’. To realise how ridiculous this sounds, imagine Ireland berating the United States for not towing the line because it is an Irish state. I was surprised at the relatively small size of the Chinese diaspora at only 60 million, Ireland claims 70 million people of Irish descent. And that’s even allowing for the fact that the Irish minority in mainland Britain is declining in number due to an ageing community. If you want to know more about the government of China and its efforts to influence the Chinese diaspora, I can recommend reading Hamilton & Ohlberg’s – The Hidden Hand.

    China

    China deploys village cadres to help Foxconn hire workers in bid to secure nation’s role in Apple’s iPhone supply chain | South China Morning Post – gives a good idea of how precarious the finances of Zhengzhou’s government is that it will go this far to support the Foxconn factory

    Millions of missing women: China grapples with legacy of one-child policy as population ages | Population | The Guardian – how is this different from the tsunami of singletons in the west?

    China’s offshore ‘police service stations’ spark European alarm | Financial Times

    FMCG

    Consumer market update Germany, 2022, Q3 – Carter Murray – German consumers less likely to buy sustainable products in the current economic downturn. This matches longitudinal research that Gallup has done for decades.

    It’s hard to believe that fast food restaurants were innovative 40 years ago. McDonald’s haven’t changed their tray designs at all. The idea of it being fast and clean doesn’t feel so fast or clean now given the small of the restaurant and greasy stainless steel counter sides.

    Health

    The technology behind China’s COVID traffic light system app: ChinAI #203: A Critique of Health Codes as the Digital Leviathan 

    Klick Wire | Does it work? Oncologists main question 

    Ideas

    The Growing Religious Fervor in the American Right – The New York Times – no it isn’t. Just in the same way that the CIA operations in Soviet-era Afghanistan begat Al Qaeda and the Taliban, so Ronald Reagan courting the Christian right begat a dangerous mix of religiosity and right wing politics. More on that here: Ronald Reagan and the 1980s: Perceptions, Policies, Legacies (Studies of the Americas) edited by Gareth Bryn Davies and Cheryl Hudson

    Lies in authoritarian regimes, its stickiness as a habit once it’s been developed as a survival skill. Lying to ignore uncomfortable truths

    Innovation

    Exascale wafer-scale supercomputer has 13.5m cores | EETimes – the die size must be huge, I wonder what the error rate is like?

    Diamond wafer startup takes on SiC | EE Times 

    Luxury

    Mike Ashley’s Frasers in talks to buy Savile Row tailor Gieves & Hawkes | Retail industry | The Guardian

    Luxury market forecast to grow despite global recession fears | Financial Times 

    Marketing

    KFC blames its bot for promoting its cheese-covered chicken on Kristallnacht – The Verge – from the explanation given KFC were running some sort of rules based marketing automation that created content based on calendar events – which makes you wonder what calendar were they using that went beyond joyous public holidays?

    Materials

    Autonomous asset monitoring solution uses 100µAh micro-battery | EE Times 

    Media

    SpaceX just bought a big ad campaign on Twitter for Starlink | CNBC – doesn’t look good given the ownership that Elon Musk has of SpaceX and Twitter

    Magic: The Slathering | Financial Times “We are downgrading Hasbro to Underperform after conducting a deep dive on the company’s Magic: The Gathering business. Hasbro is overproducing Magic cards which has propped up recent results but is destroying the long-term value of the brand. Card prices are falling, game stores are losing money, collectors are liquidating and large retailers are cutting orders.”

    Online

    Fake Eli Lilly account may cost Twitter millions – The Washington Post 

    Security

    How North Korea became a mastermind of crypto cyber crime | Financial Times 

    China is biggest state-based threat to UK security, says Sunak | Financial Times – it can be partly explained by Russia’s poor performance in Ukraine

    Interesting interview with Justin Brock of RUSI, which provides a much more nuanced take on the air war in Ukraine.

    Software

    Dan O’Dowd is the rich tech CEO spending millions to stop Elon Musk – The Washington Post – O’Dowd is the founder of Green Hills Software, the embedded software company

    Web of no web

    78% of Chinese Consumers Own Wearables, But Gen X Has Privacy Concerns / Digital Information World 

    Wireless

    Keysight, NOKIA Bell Labs collaborate on 5G-Advanced and 6G EETimes 

    Largest commercial LEO 5G satellite array unfolded EE Tiimes 

  • Yeezy + more stuff

    Yeezy

    In 2020 Forbes magazine described Yeezy’s rise as “one of the great retail stories of the century”. Yeezy influenced and inspired a multitude of other fashion brands. Kanye West and the Yeezy brand has been a phenomenal power in street wear. West collaborated with BAPE early on his career and Yeezy took off with the famous Nike collaboration output: Air Yeezy sneakers. Adidas reached out to West, after

    The Adidas-Kanye West divorce bill is in: ending sales will cut expected profits at sportswear company by over a third | South China Morning Post 

    Adidas has a plan to sell Yeezy sneakers without YeBecause the company owns the designs it made with Ye, it can—and it probably will—sell the shoes, chief financial officer (and interim CEO until Dec. 31) Harm Ohlmeyer said on the company’s Nov. 9 earnings call. – They can’t use the Yeezy name though. Given that Yeezy is responsible for up to 40 percent of adidas properties according to some sources, this could end up being the best of both worlds for adidas. Kanye West was unhappy for a long time with the adidas deal, so unlikely to complain, and he may yet be able to use the Yeezy brand with another sneaker maker, for instance in China.

    China

    Nvidia hobbles A100 chip to meet US export control rules | EE Times 

    Opinion | How China Lost America – The New York Times – interesting piece by Thomas Friedman – the big take out for me is that China thinkers don’t realise that Xi Jinping doesn’t care due to his Marxist dialectic world view. Read also: The Return of Red China: Xi Jinping Brings Back MarxismChina is now breaking from decades of political, economic, and foreign-policy pragmatism and accommodationism. Xi’s China is assertive. He is less subtle than his predecessors, and his ideological blueprint for the future is now hiding in plain sight. The question for all is whether his plans will prevail or generate their own political antibodies, both at home and abroad, that begin to actively resist Xi’s vision for China and the world. But then again, as a practicing Marxist dialectician, Xi Jinping is probably already anticipating that response—and preparing whatever countermeasures may then be warranted – Kevin Rudd on China

    Consumer behaviour

    PR emails: I said yes to every single one for a day. Oof. | SlateCould it be possible that the publicists are on to something? Is the daily flood of hopeless pitches actually a secret window into American ingenuity, optimism, and desperation—not to mention a very interesting line of scientifically tested sex toys?

    In repressive Qatar, hotels are a haven for sex, booze and more | Financial Times 

    Design

    Really interesting commentary on how Adidas designed the mesh used in the 4DFWD running shoe that provides a similar energy transfer to the carbon fibre shank in  Nike Air Zoom Alphafly NEXT% shoes that completely changed long distance running

    Who Will Replace Evans Hankey as Jony Ive’s Successor as Apple’s Design Chief? – Bloomberg – this looks like a potential crisis for Apple. They don’t seem to have built up a design team culture in the way that Dieter Ram did at Braun

    Is CGI getting worse? Yes and no. The reason why it seems to be worse is down to worker exploitation

    Economics

    China unveils new policies to solicit foreign investments in manufacturing operations – implies a point of weakness in the Chinese economy. This also explains China slashes quarantine time for international arrivals to 5 days | South China Morning Post in the hope that senior executives will be bothered to turn up. These policies might be needed due to the multitude of down sides in sourcing from Chinese factories:

    • COVID-zero
    • Brand China
    • Coercive technology / process transfer
    • Restrictive outbound capital platforms

    Automotive supply chain saw component demand revival despite macro headwinds | DigiTimes 

    Morgan Stanley (MS) Cuts China Annual Inflow Estimate as Risks Mount – Bloomberg – slowing foreign investment

    Expect a global economic recession in 2023: Report: TSMC takes action in response to falling demand | EE Tiimes 

    Finance

    Sam Bankman-Fried is not very good at League of Legends | Financial Times – parody meets real life personified. Read in conjunction with What if crypto just…dies? – by Noah Smith – Noahpinion

    China given advantages in loan for Kenyan rail project, contract shows | South China Morning Post 

    FMCG

    ‘Grave of the Fireflies’ candy-maker goes bust as costs soar | The Japan Times 

    You need this instant Japanese curry rice if you hate cooking but want to eat a balanced diet | SoraNews24

    Gadgets

    Inoreader – Take back control of your news feed – new RSS Reader, though I find Newsblur better for my needs

    Germany

    Scholz in China | Franco-German tandem | Supply chains – Chancellor Scholz’ China visit has cost him dearly in every other arena but China

    Hong Kong

    38,600 Hongkongers under 18 have applied for Britain’s special BN(O) visa scheme, but most requests come from residents in prime working years | South China Morning PostNearly a third of 142,000 Hongkongers who have applied for a special visa that leads to British citizenship are under 18, while those aged 25 to 54 make up the majority – Hong Kong already has an ageing population. You will also find that the leavers are likely to skew much higher in certain professions and skills sets such as nursing, social work, business management, accountancy and teaching

    Health

    ‘I miss eating’: the truth behind the weight loss drug that makes food repulsive | Food | The Guardian – this is a mess for Novo Nordisk. (Disclosure: I worked on the global launch of Wegovy®)

    Innovation

    NTT claims it can stop the noise leaking from headphones • The Register 

    Bosch taps IBM quantum computers in hunt for new EV materials | DigiTimes and IBM think they’re on to something big: IBM sees 2023 as quantum inflexion point | EE Times 

    Infineon, X-Fab join Fraunhofer DNA memory project | EE Times 

    Japan budgets $2.4 billion for chip R&D hub with US, Europe | EE Times

    Eliyan raises $40m to shake up chiplet interconnect | EE Times 

    Japan

    Honda and Nissan move financial forecasts upward as Yen stays weak | DigiTimes 

    Germany finishes first again with Japan and Canada rounding out the top three nations | Ipsos 

    Japanese clothing chain Uniqlo now selling flowers online, they’re way better than we imagined | SoraNews24 – interesting brand extension by Uniqlo

    Luxury

    Hermès, L’Oréal bounce back in China despite ongoing lockdowns | Advertising | Campaign Asia 

    Marketing

    Life and work post Covid – production and post | shots 

    Materials

    Great video on how additive manufacturing’s unique properties can result in innovation. This heat exchange was printed from laser sintered aluminium alloy powder. The weight savings and increased thermal efficiency figures claimed are very impressive. The problem is using this technology at scale, or will it be niche like carbon fibre fabrication is now?

    Some machines combine CNC milling machines with additive manufacturing capability, this hybrid expertise makes a lot of sense.

    WFL additive manufacturing
    Tim Wantink – The WFL M80 Millturn with 10 kW laser-unit for additive manufacturing

    Online

    TrustCor Systems verifies web addresses, but its address is a UPS Store – The Washington Post 

    Deception Is a Weapon in Russia’s War in Ukraine – The New York Times 

    Retailing

    China’s Singles’ Day 2022 sellers aim for quality over quantity | Quartz – similar to what’s been said on Campaign Asia – I think it will be difficult due to platform power

    Security

    China Recalibrates Its Strategy in the Pacific Region – The China Story 

    Microsoft links Russia’s military to cyberattacks in Poland and Ukraine | Ars Technica 

    Australian police reveal Russians behind Medibank medical record hack | South China Morning Post 

    Software

    Signal >> Blog >> Reflections: The ecosystem is moving – interesting discussion on federated versus centralised systems

    Taiwan

    TSMC and UMC report double-digit October sales growth; no 3nm for Arizona yet | DigiTimes 

    Technology

    The US used shell companies during the Cold War to secure titanium from Russia. Now it seems that Russia has done similar things with electronics components for its smart weapons obtained from US manufacturers.

  • Brand proposition

    The brand proposition is what fires creative thinking in advertising and the bane of junior planners. In fact, the brand proposition is a topic of conversation for advertising planners, in the same way that the weather is for British and Irish people. It is a source of endless debate and discussion.

    Firstly, let’s discuss what’s a brand?

    Kit-Kat Japanese packaging

    How you define brand would likely come down to two camps. Those that broadly agree with either of two statements that branding:

    • Is the act of creating a name, symbol or design that identifies and differentiates a product or service from others
    • Is the art of aligning what you want people to think about your company, with what people actually think about your company

    The second option is closer to where my viewpoint would be, but neither are completely right or wrong. Brands have various attributes including:

    • Brand / customer relationships
    • Brand personality
    • Country of origin
    • Emotional benefits
    • Organisational associations
    • Self-expressive benefits
    • Symbols
    • User imagery

    Product specific attributes that affect brand

    • Scope
    • Attributes
    • Uses
    • Quality / value
    • Functional benefits

    JWT London’s seminal planning guide said that a brand’s appeal is built up over time by three different sorts of appeal

    • Appealing to the senses: feel, smell, tastes, sounds or looks
    • Appeals to reason: function, when would you use it, what does it contain, how does it perform
    • Appeals to the emotions: the brand style or nature, brand associations, what mood it evokes or satisfies, any psychological rewards for usage

    How does planning come into it?

    What’s a brand planner?

    “The account planner is that member of the agency’s team who is the expert, through background, training, experience, and attitudes, at working with information and getting it used – not just marketing research but all the information available to help solve a client’s advertising problems.” 

    Stanley Pollitt

    The JWT Planning Guide, which can be considered to be the stone tablets of account planning as a profession were handed down written in 1974.

    The planning guide said

    … any systemic approach to planning advertising has to do more than simply provide controls and disciplines. It must actively stimulate imagination and creativity too.

    PLANNING GUIDE (March 1974). United Kingdom: J Walter Thompson (JWT) London.

    Ok, that’s quite a big ask. But it didn’t stop there. The ideal advertising planning methods had to also fulfil four criteria

    • Realistic – based on ‘best practice’ and must be capable of being optimised and evolved.
    • Pragmatic – They must work to help people create advertising that is relevant and creative. Simple in nature, memorable and easy to follow
    • Fundamental – based on ‘coherent theories’ of how advertising benefits marketing, how communications works, how people collaborate productively and create new ideas
    • Structured – set a sand pit that imagination can work in. Chunking complexity down to simple elements and providing regular evaluation of work done
    Kit-Kat Japanese packaging

    Brand proposition

    Realistic, pragmatic, fundamental and structured dictate the shape and form of a planner’s tools and outputs. And sometimes we lose sight of this, which is very much the case with the brand proposition.

    A definition

    A brand proposition could be considered to be the foundational concept that highlights the unique identifying features of your brand.

    Attributes of a good brand proposition

    A good brand proposition will be:

    • Single-minded in purpose and being succinct – which can be a pain the 🍑
    • Almost, but not quite an endline
    • Interesting / thought provoking
    • An ongoing investment
    • Occasionally multiple – creative briefs are as much a dialogue with your creative director as they are the product of the heroic lone planner. Having multiple ways in is a good way of doing that, and there might be multiple insights that don’t easily reconcile with each other
    • Open to evolution – its more important to be interesting than correct, it is unlikely that you will get it right first time

    Rich nuggets, stimuli, creative brief delivery and post-brief discussion

    The brand proposition is a small part of the overall account planners contribution to the creative process. You could consider it a sub-set of the insightful ‘rich nuggets’ – the behavioural observations in a creative brief, which is about a quarter of the strategists contribution. Every bit of a brief that a planner writes should have these rich nuggets in it. Examples of rich nuggets that I have had in my career as a planner

    • Even in a digital world, people get annoyed and can be spurred into action when they find their mail has been opened
    • After mental health, consumers care most about having a healthy immune system. It came to fore during COVID and seems to have remained with us
    • Glow, the look of healthy skin due to a moist top layer of the skin can sell products in many markets. But it doesn’t work well in high-humidity tropical, and sub-tropical clients
    • A majority of Hong Kong beauty consumers would prefer not to interact with concession staff, they consider them to be closer to over-pushy sales people than trusted advisors
    • A majority of primary care practitioners (GPs) feel a degree of disgust when they see an obese patient
    • Chinese luxury hotel guests are likely to be younger and less formally dressed than the older western and Japanese clientele – with a dress sense that somewhat harks back to the mix-and-match approach of the Buffalo Collective

    The other three quarters are:

    • The quality of stimulus that the planner provides – Stimulus for consumer brands might be much more visual than say prescription medicines where science facts and sandboxes of regulatory restrictions could be much more important. There is usually a good deal of discussion that goes into help writing this brief that helps filter which stimulus makes the cut and the emphasis placed on it.
    • Quality of delivery on the creative brief
    • Post-brief discussion

    So the amount of ‘pain’ that junior planners have on the brand proposition is out of proportion to the brand proposition’s role in the planning process.

    Criticisms of the brand proposition

    Perceived solutions orientation

    The brand proposition puts the emphasis on a potential answer; rather than the initial problem. And I can understand how this occurs. Going back to the JWT London Planning Guide:

    Advertising involves producing a long series of unique solutions. Each piece of work requires innovation. Every script, every layout, every recommendation is Ian some way different from any that has gone before. Each client operates in a different market, and each brand in a market has different needs.

    I would argue that yes the brand proposition can be perceived to be solution focused, but I’d also argue innovation means reframing and looking at a problem in a different way – this is much of the success behind Eno & Schmidt’s Oblique Strategies.

    Brand proposition locks the planner in to a certain perspective

    The idea is that the very act of writing a brand proposition locks the planner in to a certain perspective and consequently starts making the process of developing ideas territorial and creates unhelpful barriers.

    I can see where the ‘lone heroic planner’ mode might kick in. I found it happened when I was freelancing in a team made up of freelance creative talent and there wasn’t any ‘connective tissue’ in the team.

    I think that a planner needs to be humble enough to recognise that:

    • They don’t have a monopoly on good ideas
    • They are humble enough to recognise better ideas were ever they may come from
    • They are constantly in searching mode

    Perceived traditional media focus

    Propositions are considered by some to encourage to think in ‘traditional media’ by asking what should we say rather than

    • What might we do?
    • What experience might we create
    • What interaction might we host

    My argument against this point-of-view is that its a very literal interpretation of ‘say’. If we think about person to person communication about 70 percent is non verbal cues. And I would argue that more experiential aspects fall into what we say.

    Secondly, it depends on where you are in the process. For instance in many of the assignments I worked on as a freelancer, the channel had already been defined by the client and or the media agency partner who was further upstream in the decision making process.

    A brief for Unilever’s Dove specified that they wanted a 30-second TV spot and online video clip. It has to contain an end ‘pour and pack shot’ which took another 5 seconds at the end of the video. For the online video clip you had to have the brand logo up front. This is very common when you are working on creating marketing assets for international markets.

    OK, why Japanese KitKats?

    They have one uniform brand proposition behind them, but a whole variant of different ways of solving it from a product and packaging design perspective. And, they’re really, really tasty. Japanese KitKats have the crispness I remember from my childhood eating Irish-made KitKats from the old Rowntree-Macintosh factory that was in Kilmainham, Dublin.

  • Carl Schmitt + more stuff

    Carl Schmitt

    Carl Schmitt was a German jurist, legal theorist and political theorist. The common narrative around him is that he came up with the legal principles that justified most of Nazi Germany’s greatest excesses. His work has also been used to justify the Xi-era legal system in China with legal thinking leaning heavily on the work that Carl Schmitt did. But there is more to the Schmitt story than that.

    Conservative state theory

    While the current Communist Party of China thinkers see Schmitt as a like mind, the German legal system and Schmitt’s legal system would have appealed to China from the founding of modern China with the monarchy being deposed, through warlord era though to the leadership of the Kuomintang. Germany had consolidated into a modern nation and built an empire in a relatively short space of time thanks to its legal system and a conservative state theory.

    Cautionary tale of the Weimar Republic

    Post World War One, the Weimar Republic put checks and balances on the government through the courts, which was seen as a negative given the relative performance of the country. Into this political change came Carl Schmitt. Ryan Mitchell does a good job at bringing Carl Schmitt’s story to life and talk through his relevance to China through the years.

    Moving forward to Xi-era China, the Weimar Republic that Carl Schmitt lived in looks like a living nightmare in the the same way that German Empire looked like an exemplar. Secondly, socialism didn’t provide an appropriate legal system for Communist China, so they adapted the German system that the Kuomintang had used previously with Chinese socialist characteristics that Hitler would have approved of.

    Carl Schmitt comes across as a more complex figure than he has been recently portrayed.

    Consumer behaviour

    How to make friends as an adult | The Face – really interesting that The Face felt that they had to write this article. I made some of my long term friends in London during my late 20s and early 30s. Many of the readers will also have friends from college or university as well. It implies that they aren’t socialising at house parties, going to concerts, club nights or bars. Work also seems to be a spartan supply of friendships.

    Economics

    China’s Oct exports and imports contract, missing expectations | Reuters 

    Energy

    South Korea and Japan ask US to loosen EV tax credits requirements | DigiTimes 

    BritishVolt sits on the brink … | EE News 

    Ethics

    Machine-learning systems are problematic. That’s why tech bosses call them ‘AI’ | John Naughton | The Guardian 

    FMCG

    ‘China’s hottest woman’: the driving force behind crunchy chilli sensation Lao Gan Ma | China | The Guardian 

    Asahi now sells hot bottled water in Japan as an alternative to coffee or tea | SoraNews24 – the amount of my Asian friends who carry around a thermos drinking bottle of hot water makes so much sense. More combini related content here.

    Germany

    Chartbook #168: Germany’s economic entanglement with China recommend reading with: Germany Can Afford to Spurn China | Foreign Policy 

    Hong Kong

    HSBC strains reach breaking point | Financial TimesLast week, a row between HSBC and its largest shareholder, Chinese insurance group Ping An, spilled into the public arena after Michael Huang, chair of the insurer’s asset management unit, told the Financial Times the bank should break itself up and be “far more aggressive” in its cost-cutting. The extraordinary dust-up, brewing in private for several years, according to people close to the bank, first came to light in the spring when it emerged that Ping An had told HSBC management they should pursue a break-up. HSBC has largely sat on its hands in the interim, fuelling growing frustration at Ping An. “The global finance model that once dominated and shaped the global financial industry in the last century is no longer competitive,” Huang told the Financial Times. “Just divesting a few small markets or businesses” would not be enough to address the challenges. He urged the bank to “adopt an open attitude by studying the relevant suggestions carefully and prudently [ . . .] rather than attempting to simply bypass and reject them”. Ouch

    Ireland

    ‘There’s not many left now’: census shines spotlight on Britain’s dwindling Irish community | Immigration and asylum | The GuardianThe Irish came in waves that started in the 19th century and continued through the Great Depression, the post-war boom, the swinging 60s, the Thatcher era and into the 21st century, one of the great migrations. Many were unskilled labourers, or navvies; others were plumbers, teachers, nurses, dentists, writers and entertainers. Some became famous – Oscar Wilde, Fiona Shaw, Graham Norton – or had children who became famous – Shane MacGowan, Morrissey, Piers Morgan. However, last week brought confirmation that the Irish community, for so long Britain’s biggest source of immigration, is withering. Census figures showed the number of Irish-born people living in England and Wales last year numbered 324,670, a fall of 80,000, or 20%, from a decade ago, when they numbered 407,357. The UK’s Office for National Statistics says this is a long-term trend that started in 1961, when the Irish-born population peaked at 683,000, more than double the current number. Once the biggest group of those born outside the UK, the Irish are now fifth behind India, Poland, Pakistan and Romania

    Japan

    Japan to sign military pact with UK as allies eye China threat | Financial Times 

    Marketing

    The relationship between word count and engagement | Chartbeat BlogOur analysis shows that up to almost 4,000 words, the longer article, the more engaging it will be. If your articles are falling short of the benchmarks we’ve shared, a real-time optimization tool like our Heads Up Display can show you how far readers are scrolling and give you an opportunity to make changes at the point of exit. Beyond 4,000 words, variability in engaged time grows, but that doesn’t mean there’s a ceiling. As we see with our year-end list of the most engaging stories, unique topics can require more depth than daily reporting. This doesn’t mean you should shy away from covering them. It just means you’ll need to devote more attention to optimizing these pages for engaged time.

    Airbnb Says Its Focus on Brand Marketing Instead of Search Is Working – WSJAirbnb Inc. said its strategy of slashing advertising spending, investing in brand marketing and lessening its reliance on search-engine marketing is continuing to pay off. Its marketing spending is now low enough that it doesn’t anticipate drastic reductions even if economic headwinds worsen next year, it said.– some really interesting feedback that implies Google has lost its position as the front door of the web despite dominance in both mobile and desktop browsers

    Security

    $2.5 billion was stolen by blockchain attackers in the first three quarters of 2022 / Digital Information World 

    Technology

    Apple’s hope for record quarterly sales damped by Zhengzhou restrictionsApple continues to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models, and expects lower iPhone 14 Pro and iPhone 14 Pro Max shipments than previously anticipated, adding that customers will experience longer wait times to receive their new products. Apple said it is working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker. According to Barclays’ research notes, the COVID outbreak in Foxconn’s Zhengzhou plant, which accounts for 70% of worldwide iPhone production, is estimated to affect the output of 10-12 million iPhone Pro models for the fourth quarter of 2022. Meanwhile, Deutsche Bank Securities said in a research note that according to Apple’s 10-K document filed on October 28, the company had manufacturing purchase obligations of US$71.1 billion for the third quarter, up 65% annually and 30% quarterly – a sign leading Deutsche Bank Securities to believe that Apple forecasts better iPhone growth than last year. Manufacturing purchase obligations represent non-cancelable purchase orders of components ahead of unit sales and typically covers periods up to 150 days

  • Subprime attention crisis

    Subprime attention crisis is a short book, or a long essay depending on the way you want to look at it. It was written by Tim Hwang.

    Sub Prime Attention Crisis

    About Tim Hwang

    Hwang is a lawyer working for email newsletter platform Substack. Prior to this he worked in a US think tank attached to Georgetown University: Center for Security and Emerging Technology and in public policy at Google focused on machine learning. So he brings a deep set of knowledge to writing Subprime attention crisis. One also has to bear in mind that his current employee Substack is based on the online media model moving from online advertising driven to subscription driven.

    Timing is everything

    I read this book over a couple of days at the beginning of this month. By this time, Meta and Alphabet has published quarterly results that were below what investors expected with falling sales. Add into the mix that the problems that Twitter and Snap have had (which are are bigger issues than just down to the dynamics of the online advertising market), all of which makes this book feel timely.

    On the other hand, one could also argue that much of the crisis had already landed. Ad tech businesses like Rubicon Project have either gone under or merged with their peers creating a massive amount of consolidation. The latest wave of consolidation happened in 2020 – 2021.

    Meta-specific issues

    Even with Meta and Alphabet there are business specific issues. Meta has struggled to compete effectively with TikTok. The poisonous nature of debates on Facebook, together with an aging audience on the platform hasn’t helped. In fact it’s a wonder that the context collapse that the platform has suffered from for at least the past six years hadn’t dragged it down yet. WhatsApp has helped enrich Facebook data and provided a channel for business services. At the time Facebook bought the business partly because Zuckerberg needed a brain trust for the future. The brain trust is gone and Zuckerberg’s dive into the Metaverse looks very similar to Apple’s peak John Sculley moment with the Knowledge Navigator concept. You can see glimpses of the Knowledge Navigator in the smartphone, the iPad, the now abandoned WikiReader product or the use of contextual information and national language processing like Siri. Apple didn’t waste the kind of money that Meta has spent chasing an illusory vision of the future.

    Alphabet-specific issues

    I was surprised that Alphabet growth had lasted this long based on the following considerations:

    With mobile, Google also pivoted a different type of search from product search to where is my nearest coffee shop with free wifi and has managed to sell search ads against them. This meant that Amazon and eBay managed to capture a lot of product searches, with consumers only hitting up Google afterwards and Amazon’s advertising has been eating Google’s lunch. Secondly a lot of the high street and neighbourhood shops have been eaten alive by food delivery services and this was then exasperated by the COVID which has changed at least some people’s consumer behaviour

    Historically, Google has been too focused on looking for multi-billion dollar opportunities which haven’t panned out and closed down smaller services that were making money and bringing in attention. In essence, over the years they have thought Google Reader, the Google Search Appliance, Google Health, Boston Dynamics and several other projects were the big payday. They weren’t, but they were respectable business opportunities, just too small for Google to want to pursue. In its wake Google had destroyed entire sectors, or turned them into cottage industries such as enterprise search and knowledge management, RSS newsreaders autonomous robots

    Web search in general has become less effective at doing deep research for consumer and B2B needs – no more support for boolean operators is a case in point. This has had some tech forward netizens wondering if the likes of Reddit fulfils the vision of knowledge search in place of Google and Alphabet being concerned about young people using TikTok as their local search box instead

    “something like almost 40% of young people when they’re looking for a place for lunch, they don’t go to Google Maps or Search, they go to TikTok or Instagram.”

    Google internal report quoted by Business Insider

    YouTube seems to struggle getting brand building advertising dollars in the face of TikTok, Instagram and this explains why you saw a decline in sales over 2 percent. Instead you see a lot of D2C product ads a la day trading and drop shipping courses advertised. Part of this might be down to the product. YouTube has been screwing over creators and creators have made it clear that they’re not happy. You don’t need to go to YouTube if you get the directors cut of your favourite creators content on Patreon or Curiosity Stream. Censorship of political analysis content around China or Ukraine seems to be particularly bad. 

    Back to Subprime attention crisis

    Hwang in Subprime attention crisis points out many of the things that agency employees and owners have known for years:

    • Online advertising effectiveness has declined compared to its performance 25 years ago
    • Audiences don’t see a lot of the ads that are displayed. Different reports will give you different numbers on this
    • Online advertising is destroying the very media industry that its content is shown on
    • Online advertising fraud is a big problem
    • Online advertising business practices are an even bigger problem with up to 70 percent of of online programmatic advertising spend going to advertising technology intermediaries such as The Rubicon Project (now Magnite) and Xaxis
    • This has allowed businesses like Procter & Gamble and adidas to reduce advertising spend at no loss in effectiveness. In the case of P&G Subprime attention crisis highlights how they cut $200 million in online advertising spend, moved that spend on to offline media like radio and print AND managed to increase their reach by 10 percent.

    More on adidas via its inhouse head of media Simon Peel

    One of the most notable things for me was being introduced to the work of Australian based academic Nico Neumann who has done some great research on online advertising effectiveness related areas including Frontiers: How Effective Is Third-Party Consumer Profiling? Evidence from Field Studies.

    So nothing surprising for insiders, but….

    Hwang marshals his facts well. Which is what you would expect from a lawyer. He uses analogous examples from the US financial services sector including the 2008 financial crisis. The book itself is 141 pages in length and there is a substantial section detailing his sources. Subprime attention crisis is based exclusively on desk research.

    More on the book here.