The online field has been one of the mainstays since I started writing online in 2003. My act of writing online was partly to understand online as a medium.
Online has changed in nature. It was first a destination and plane of travel. Early netizens saw it as virgin frontier territory, rather like the early American pioneers viewed the open vistas of the western United States. Or later travellers moving west into the newly developing cities and towns from San Francisco to Los Angeles.
America might now be fenced in and the land claimed, but there was a new boundless electronic frontier out there. As the frontier grew more people dialled up to log into it. Then there was the metaphor of web surfing. Surfing the internet as a phrase was popularised by computer programmer Mark McCahill. He saw it as a clear analogue to ‘channel surfing’ changing from station to station on a television set because nothing grabs your attention.
Web surfing tapped into the line of travel and 1990s cool. Surfing like all extreme sport at the time was cool. And the internet grabbed your attention.
Broadband access, wi-fi and mobile data changed the nature of things. It altered what was consumed and where it was consumed. The sitting room TV was connected to the internet to receive content from download and streaming services. Online radio, podcasts and playlists supplanted the transistor radio in the kitchen.
Multi-screening became a thing, tweeting along real time opinions to reality TV and live current affairs programmes. Online became a wrapper that at its worst envelopes us in a media miasma of shrill voices, vacuous content and disinformation.
Before I delve in to Harnessing the Power of Social Applications I need to get something out of the way. Normally I don’t highlight articles in the same way I will review a book, they would normally appear in links of the day, but I really liked Bernoff and Li’s article in the latest edition of MIT Sloan Management Review. I know that it is designed to help build up a head of steam before their book launch ‘Groundswell’ however it is a great article to put in front of the noses of business people about the value of social media and taking online marketing beyond search engine marketing (SEM).
Their simple guide on how different business functions can be impacted and how success can be measured is something that social media types should have as a laminated card on their cubicle wall.
Some of the data points that Li and Bernoff used in the article additional items of interest that weren’t covered by article. Whilst in the UK we think that social networks like Facebook are having real take up and impact that is nothing compared to the level of online engagement by Japanese and Korean web users. Much of this engagement is likely to driven using mobile devices. Overall PC penetration was lower than the US, mobile device adoption was higher in Asia. The handsets were more sophisticated in terms of networks and access to online services.
It is also interesting to see how low the level of adoption of social media is in Germany. The bulk of activity being focused on consumption and anonymous participation in traditional forums. This is down to the experience of privacy invasion that happened during the Nazi era and in East Germany with the Stasi’s network of informants.
On Leaving Yahoo… : Elatable | Bradley Horowitz – Bradley Horowitz leaving Yahoo!, on its own a bit of a sad day for the big Y! as Bradley is probably the smartest guy I have ever stuck in front of a journalist. Bradley Horowitz had come to Yahoo! as part of the surge on search under then CEO Terry Semel. He was one of a senior management team that reported into Jeff Weiner
The Manga Bible – Pages – Japanese artists have done the story of Buddha and text books in manga, so I guess this is the logical extension. Its not really drawn in a manga style but has a good pedigree with one of the artists having worked for 2000AD
Economics
The dark reality – interesting realistic economic analysis on India that could apply to China just as well
The Green Lantern – green and quality concerns kick in on Japanese restaurant offerings
Marketing
SMS Text News » Archives » Text a Mars Bar! – UK agency copies Korean idea for Mars / Masterfoods. Nate.com has had this on a social network-wide level for a good while. It just goes to show you that there is no such thing as a new idea
Media
Half Of All Clicks On Display Ads Are Worthless – A study put out yesterday by comScore, Starcom Media, and Tacoda suggests that half of all clicks on display ads (as opposed to clicks on paid search links) are generated by only 6 percent of Web surfers.
Here is the notes that I made mostly from the morning sessions of the mobileYouth trend workout. There will be presentations and videos of the event available from their site next week. I was speaking on a panel later in the afternoon so was able to pay attention to the earlier panels.
Graham Brown – mobileYouth, the organisers of MobileYouth trend workout
Event introduction
Young people spend about 1.3 trillion USD per year, 130 billion of which is spent on mobile services (or roughly ten per cent of their total income). This impacted the sales of chocolate, music (in the form of CDs) and cigarettes
Young people spend an average of 20 – 25 GBP per month
Mobile services of young people grow at about 4.5 – 5.0 per cent year-on-year. This growth comes at the expense of, and in competition with television, entertainment and clothing
Brown asked the audience of mobile operators to think beyond ARPU and instead think about lifetime spend. By the time that consumers are 33, they have already completed half their lifetime spend. Yet this is the age group that is currently most attractive to carriers looking at the ARPU model. It was an interesting counterpoint to marketers viewing the grey market as the next big opportunity.
Mobile marketers run the particular risk of ending up with an aging or aged brands due to the virtue of a misplaced focus. Brown delivered a case study on Harley Davidson to prove his point. In the 1960s circa Easy Rider, Harley Davidson was a youth brand, now their average customer age is 51 years old.
If things carry on this way, in a little over twenty years, their customer base will be 70, possibly only ready to ride a zimmer frame. According to Brown the consumer lifecycle begins at 10 years old.
Geoff Goodwin and Marc Goodchild – BBC
Children still view as much children’s television as ever, however their consumption of television overall has declined as expected
The BBC is now looking for integrated media properties and partnerships. No one organisation has it right, hence the need for partnerships. Young audiences churn at an incredible rate so the BBC is constantly having to rework itself to remain relevant, rather than having the brand advantage that most people thought they had.
Important mobile technologies for young people are FM radio, SMS and Bluetooth. This low-level tech is because most young people get by with found technologies: hand-me-down mobile phones, an old TV from the living room or a discount model picked up at ASDA or Tesco and vintage computers from work or the living room.
Roundtable: Johan Winbladh mobile channel editor – Danish Broadcasting, James Davis head of mobile – News International, Michiel de Gooijer business development manager – Endemol, Giovanni Maruca director interactive and mobile EMEA – Paramount and Tim Hussain head of mobile monetisation – AOL UK
Mr Winbladh was the hawk in the discussion: mobile devices weren’t ready to put to the kind of mobile experience that users wanted and the industry thought was appropriate, whereas the other audience members felt that the latest generation of mobile handsets and all you can eat tariffs are readdressing the issue.
Maruca was excited about the way that advertising could be delivered in a context aware manner. By adding value to the advertising it can become unobtrusive and essentially no longer be advertising, but information.
Roundtable: Richard Miller general manager for consumer convergence – BT and Derrick Heng director segment marketing and communications – Singapore Telecommunications Limited
BT’s vision of Wi-Fi as a mobile technology is at odds with the GSM/W-CDMA orthodoxy of the mobile industry.
SingTel in contrast has complete fixed and mobile integration and pay TV. SingTel segments its customer base and actively manages the customer relationship with a long-term view. They provide email to mobiles on an ad-funded revenue model. In Singapore the killer apps for mobile usage by young people were email and SMS. By comparison audience member Jonathan MacDonald sales director of Blyk pointed out that for UK mobile users the three killer apps are voice, SMS and the phone’s alarm clock.
The audience debate then raged, the killer application for young people is doing the basic things well, providing decent customer service, having a decent relationship with the clients and not charging them excessively for that relationship. More related content here.
US investment bank Piper Jaffray put out some of the smartest publicly available thinking about the internet space at the moment: last week they issued a new detailed report called The User Revolution: The New Advertising Ecosystem and The Rise of the Internet as a Mass Medium. Piper Jaffray customers can get a copy from their representative, I am on their email list because of my long-term interest in this area.
Reading it at first, my initial reaction was that I thought that it was quite patronising, but then I realised that the document has to assume little to no knowledge because its main audience is going to be fund managers of all ilks.
The Piper Jaffray report has some great industry data points and articulates many of the key concepts that are shaping this market in an easy and articulate manner. In the accompanying industry note the technology analyst team pulled out those key points as an executive summary; some of which I expect to see being incorporated into PowerPoiint presentations at a meeting near you:
The User Revolution
The User Revolution – consumers taking control of content consumption and branding. User-generated content as well as user indent driven services (like Amazon, Last.fm and Yahoo! Music’s Launch radio stations).
Communitainment – The three areas that historically drove demand for internet services like Yahoo! and AOL of comunity, communication and entertainment are being directly addressed all at once by new services acting as an accelerant for for the market
The Golden Search – ’search as the new portal’. When I used to work at Yahoo! search was described as the front door to the web. A much quoted statistic was that over seven out of every ten internet sessions was started from a search enquiry. Piper Jaffray thinks that search will be increasingly used in branding campaigns (marketers really need to crack this as contextual and search adverts have encouraged brand disloyalty – Kelkoo’s whole business was built on the back of Google ads with pretty much zero brand marketing, and you have a generation of online marketers who use quantative data from search marketing without any regard to brand value, instead focusing purely on transactional data).
Video ads
Video ads will be the next thing – this is kind of counter-intuitive as ads have moved from banners and animation to text ads, but then services like YouTube facilitate in-programming ads a la television.
I found the following section of the report executive summary particularly pertinent, and as a PR consultant it is the concept that clients I have spoken to find the most difficult to grasp: The Revolution Is About Control. The uprising by the users is over control – control of the type of content users want, control of the place and time content is delivered., control of the advertisements that the users are willing to take, and control of the brands they want to create. Unlike most revolutions, where the masses revolt because of major hardship and grievance, the User Revolution was largely driven by the proliferation of media options, the emergence of the Internet, and the growing sophistication of consumers.
I find the last point of particular interest, particularly when I think of the adverts that run on UK television for products like the now defunct Courts Carpets or Cillit Bang – perhaps there isn’t that much wisdom in marketing.
And finally just a couple of the business risks that I through of interest:
The loss of confidence by advertisers in the effiacy of online advertising and emerging business models.
A decrease in efficacy of online advertising including display and search advertising
Media fragmentation
I particularly like how they show the fragmentation of media over the past 40 years!
It was a pleasure to read jPod. I like the writing of Douglas Coupland, he’s like a lightning rod for the zeitgeist for the knowledge economy. I’ve grown up and moved through my career with his works as a kind of literary soundtrack playing in the background. His writing moves from the monotony and empty-sadness of generation x in the 1990s through to the surreal humour of the present day.
jPod is an updated world-view that builds upon Microserfs and Generation X. It is has a certain amount of recursion to these works and Douglas Coupland also appears in the book as a character. This recursion and self-referencing is fun for loyal readers and mirrors modern culture with its hipsters wearing ironic trucker caps, drain pipe jeans and Lynyrd Skynyrd t-shirts and listening to bad mash-ups of 1980s music radio fodder.
The non-linear, multi-voice, collective approach in writing mirrors modern environments were online predominates. The only downside to this was that I was quite happy to put the book down and not revisit for a fair while because there wasn’t the same sense of suspense or urgency. The book took me four weeks to read, not because it was hard or inaccessible and I did enjoy it – I guess this drifting along is an analogue to the life that Coupland is trying represent.
The fantastic dark humour of jPod mirrors a society facing world-war three in the Middle East, global warming and the meltdown of the relationship between employer and employee where not even greed can be trusted anymore.
Deep down there however is the essential truth about the Kafta-esque nature of working in a knowledge economy company, particularly software or web services. The politics aren’t right, but they’re close enough.
Go out and get it here. The author’s online presence is here. More book reviews here.
is an updated world-view that builds upon Microserfs