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  • Trends and fads

    Why trends and fads?

    Why trends and fads came about as a post, was that I was scrolling on my LinkedIn notifications on a Saturday (I know, I know I should keep my life free of this crap on the weekends.) Creative Review were talking about how trend forecasting had become rusty, but that got me thinking about did they understand the difference between trends and fads?

    A good deal of what I see described as trends are fads, which then got me wondering about how do I help people differentiate between trends and fads.

    Why has it become harder to differentiate likely trends and fads?

    I would argue that the difficulty in differentiating likely trends and fads is down to a few reasons.

    • The nature of culture has changed. It has become massively parallel in nature. This has in turn impacted trends
    • Culture has become elongated in nature.
    • The changing nature of culture means trends surface and submarine again over time.

    Mass to massively parallel.

    Culture has become massively parallel. Culture and its nature has been transformed over the last century. There were a few sub-cultures at best that mattered at a given given moment in time.

    The idea of the ‘teenager’ which was the first attempt to carve out a new generation was done in the post-war affluence of America and latterly European countries, Japan and Korea as economic development took hold. We might use different language now, but teenagers were the engines for the sale of goods and services:

    • New music
    • New spaces (gaming arcades, fast food restaurants, coffee shops, instant messaging platforms, social platforms)
    • New fashion looks (mods, rockers, greasers, ravers, emo, gorpcore etc.)

    At the time, the mass media helped facilitated the propagation of a mass culture. A few music publications, radio stations, newspapers and TV stations could make a break an artist. We can see this over time with the power of Johnny Carson, Merv Griffin or Ed Sullivan in the US, Gay Byrne and Gerry Ryan in Ireland or Top of the Pops and Pete Tong in the UK.

    Ed Sullivan introduces The Beatles.
    Paul McCartney remembering the 1964 show.

    However a combination of economic improvement and technology saw the mass media broaden with countless publications, TV channels, radio stations, websites and social channels until it is no longer ‘mass’ in nature.

    Add to this, the world got smaller. Travel while still expensive became cheaper from the 1970s and 1980s onwards allowing more people to discover culture from elsewhere. And this was despite a massive surge in the price of oil due to troubles in the Middle East. So trends and fads moved around the world. Liverpool lads brought the ideas of sports casual dress from Spanish and French department stores, Japan borrowed various parts of Americana and streetwear, hip hop went around the world.

    The connectivity from the worldwide web put this in overdrive. A world of culture opened up making things massively parallel, which allowed people to pick and choose their own cues. These choices gave us massively parallel culture and resulting trends.

    Culture has become elongated in nature.

    I have friends (and associates) in their late 50 and early 60s who DJ, surf, skateboard and do martial arts. These were people who remember club nights before house music let alone EDM, who can remember the first skate parks being built in the UK and knew of Stüssy because they were part of the original Stüssy tribe of interesting folks formed by Shawn himself.

    People who might listen to Radio 4 on occasion, but are still cooler and more culturally relevant than many teenagers. Probably more culturally relevant than their college age kids.

    This cultural elongation is something that we’re starting to see gen-z obsessed agencies. A good example of this is ZAK Agency’s Learn To Time Travel white paper. Part of it has been down to life stages happening later for each generation; or not at all.

    • Moving out on your own.
    • Settling down.
    • Having children.
    • Buying their own home.
    • Being able to afford to retire.

    Part of it is down to the world norms changing. I seldom have had to wear a shirt and tie, or suit to work. My Dad wore a tie right up until the mid-1980s to work, because that was expected of him. He wasn’t a banker, but a shipyard worker. Athletes can potentially stay in peak condition for longer, all made possible by the modern world.

    Despite what we believe about technology usage, for those who are 70 or younger, income influences tech adoption as much as age related knowledge. Giving all of us access to as much culture as we can mainline.

    Fads

    If you hear the phrase ‘TikTok trends’ that are fast-changing, it’s a clue that it’s likely to be a fad unless by some blessed miracle it sticks. In the 20th century, fads were often easier to spot and the 1970s in particular were a gold mine for the fad spotter.

    Fads appear, go large and then disappear. They are ethereal in nature, rather like most TikTok trends. The Pet Rock is a prime example with its swift rise and demise.

    Pet Rock

    Northern California-based copywriter Gary Dahl came up with the idea of a pet rock. Essentially adhesive googly eyes attached to a rounded pebble that might feel pleasing in your hand for skimming across a body of still water like a lake. Dahl’s insight came from sitting with friends in a bar and listening to complain about the challenges of pet care.

    Dahl started off his project by writing a satirical pet care manual for a rock, based on the kind of care guide a veterinarian might have for a new dog owner. This included on tips for when your rock was feeling anxious.

    The rock came with the instruction book for care, it sat in a nest of long wood shavings inside a card carrying crate with a handle on top and seven vent holes on each side.

    gary-dahl-2

    Dahl put his product into the market in August 1975. Dahl was apparently selling 10,000 rocks a day and it became a gag gift over the Christmas period with estimates on sales as between 1 million to 1.5 million genuine rocks. By February 1976, they started to need discounting. Dahl ploughed his profits into opening the Carry Nation’s bar in Los Gatos, which is still there.

    The Pet Rock was clearly a fad, yet it did inspire my junior school art teacher to get us to collect stones from a visit to the beach, stick googly eyes on them and varnish the whole lot. Some were brought home and the rest sold at the school fair. Dahl wasn’t able to patent his idea. As far as I know around 2010, someone started an abortive business replicating Dahl’s packaging design and rocks.

    Dahl built his freelance copywriting business up into an agency that produced radio and television ads for local businesses including wireless providers, technology firms and dot coms. The reason for this was that Campbell had been living in the Silicon Valley area as it grew up into what we know today. Dahl even wrote the For Dummies guide on advertising in 2001, which is still available today and is a good primer on the process. Dahl passed away in 2015.

    Trends are resurgent, surfacing and submarining over time.

    Take the idea of cocooning in our own soundscape as an example of a resurgent trend. If you go on the public transport headphones or AirPod type earphones are ubiquitous. If you go and work in an office, you will see a similar set up. Prior to the rise of the AirPods it would have more likely been Sony or Bose over-ear headphones rather than wireless AirPods.

    Back in the early 1970s, my Dad took the train down to London while listening to a collection of cassettes he’d made of his record collection. The trip was one he occasionally made for the shipyard where he worked at the time. It was a long slow train journey. We had a bulky luggable cassette player similar to the one below and he wore a pair of headphones bought in Liverpool that looked like sturdy ear protectors. The tape machine was more designed for basic portable recording such as a manager recording a memo to be typed up. They were occasionally pressed into service in a similar way to my Dad’s usage.

    Old personal stereo
    Around about the same time, luggable stereos were being made by European manufacturers including Philips and Grundig. Soon after that Japanese manufacturers like Sharp, Sony and Panasonic released their own versions which were very successful. These were cemented into culture by young Americans who valued their portability and bass response.
    Beck at Yahoo! Hack Day
    Beck at Yahoo! Hack Day with a boom box

    Boomboxes weighed a lot, Sony provided an alternative with the Walkman and eventually the Discman. These were portable cassette and CD players respectively which offered personal listening with headphones. These were briefly joined by MiniDisc players.

    Around about the time when the web started to take off, you had early MP3 players such as the Rio series of machines and the CreativeLabs Nomad. But things took off with the Apple iPod, offering a new level of personal audio freedom.

    San Fran - ipod advert & Jim

    Eventually a confluence of the smartphone as digital Swiss Army knife and BlueTooth wireless standards provided us with our current personal audio freedom.

    Cocooning is just one example. As far back as the post-war era we have seen military surplus clothing go in and out of style. Thrifting has taken a similar route with it driving the iconic grunge look of the early 1990s and the Dpop shopping of today’s young people.

    We could quite easily come up with a list of trends that never die. The annual trend reports tweaking the relative volumes on these trends over time to match economic and socio-cultural changes.

    More related content here.

  • Morizo and more things

    Morizo

    Akio ‘Morizo’ Toyoda, of the Toyoda family who made their first fortune designing automatic textile looms in the early 20th century and their second fortune as the founders of Toyota. During the week Toyoda-san is the chairman of Toyota Jidōsha kabushikigaisha. But in his spare time he liked to do circuit racing under the name Morizo. At first, the Morizo name was to keep his moonlighting racing of the radar of Toyota board. But recently it has become an asset, with Toyota and its GR performance brand creating some of the best drivers cars available.

    Toyota have started to use his natural enthusiasm for the company’s benefit. The Lexus LBX Morizo RR is currently a concept car that sees a baby Lexus LBX SUV benefit from the mechanicals of a Toyota GR Yaris.

    Although talk about this as a Morizo only concept, it feels like the company might be feeling consumers out to possibly put this into manufacturing. If they did this, it would allow the company to take advantage of the GR Yaris-only components currently made and use them more widely.

    The Criterion closet

    Criterion as a publisher of DVDs and Blu-Rays is a badge of quality. The closest equivalent in the UK would be Curzon who bought Artificial Eye a number of years ago. One of the things Criterion do is video taste-makers who are allowed to take away some of their favourite films away from the company’s stock. Here are a couple of my favourites.

    William Dafoe

    Hideo Kojima

    Watch trends

    While much watch collector videos know feel more like Bloomberg reporting on a commodity because of the rise in the secondary market, this wrap-up strikes a nice balance. Some of the factors mentioned in this review appeared in my 2023 wrap-up and here.

    Mexican street culture

    If you had uttered those words to me before this week, I would have immediately thought of saints festivals, the day of the dead and the Chicano culture that grew out of Mexican communities who emigrated to the US. But there is so much more in Mexico itself as Refinery 29 shows in this film.

    The 50 French words test

    You can imagine the brief that came down to this government department in Quebec: make more English speaking visitors and businesses come to our province. The insights being along the lines of most English speakers don’t feel confident dealing with a foreign language, so how to do demystify French.

    I don’t know who the Ministère des Relations internationales et de la Francophonie used, but they deserve every penny of their fee with this film.

  • March 2024 newsletter – no. 8

    March 2024 newsletter introduction

    Welcome to my March 2024 newsletter which marks my 8th issue.

    Strategic outcomes

    I am glad that I have moved to the eighth issue. In between St Patrick’s day happening in March, and the number 8 being lucky according to the Chinese in a good place – I figure its a good omen for this issue. 8 symbolises prosperity, joy and infinity. In Chinese pricing strategy 8 holds a similar role to 9 in western markets, so $58, $88 and $688 are frequent pricing points.

    Love on St. Patricks

    St Patrick’s day is particularly lucky for one Chinese city above all others: Yiwu in Zhejiang province is often called Christmas town. In reality it’s a city selling ‘small commodities’ better known to you and I as tat. The Christmas town epitaph came from it being the centre for the global Christmas decorations trade. It’s also where most of the St Patricks Day decorations are made including the leprechaun hats popularised around the world by Irish pubs.

    New reader?

    If this is the first newsletter, welcome! You can find my regular writings here and more about me here

    Things I’ve written.

    • Razors for strategists – how we can apply the principle of philosophical razors to aid faster solutions for client work, while also bearing in mind their limitations.
    • Vicki Dutton – Singapore’s forgotten fashion icon.
    • Brand clichés – a bit of honesty from the trenches.
    • CMOs – their demise and evolution considered.
    • AI two-step – corporate leaders reluctant to admit AI-related job losses.

    Books that I have read.

    • A Hacker’s Mind by by veteran technologist Bruce Schneier provides a guide to the different way people have found loopholes to ‘hack’ systems. Schneier is trying to write a social movement book,, but while it’s interesting enough to read on a plan, it will be harder for it to get people moving as he intends.
    • I picked up this book from Scheltema book store just off Dam Square in Amsterdam during a work trip, with a bit of time-off bolted on the end. Browsing the English language book section of foreign book stores often gives recommendations that you wouldn’t otherwise look at. Tales from the Cafe: Before the Coffee Gets Cold is book two of a four-book series by Japanese author Toshikazu Kawaguchi is difficult to characterise in terms of genre. It’s a time travel novel with distinct rules that keep its universe coherent. It’s a book that is suitable for children, but not aimed at children- in this respect its more like the childhood books that I read growing up than are popular now as the ‘young adult’ genre. It’s about love lost, but not a romance novel – the love covered is a mix of loneliness of a widower, an orphaned child and a past romance. There is something delightful about the book, especially as it captures the minutae of everyday Japanese life.
    • Historian Dan Jones portrayal of medieval wars in his Essex Dogs series is very well written and accessible. It’s an ideal holiday read, if you can handle the grim subject matter. The Wolves of Winter is a richer story with greater intrigue in the plot line.
    • Back in the early 1990s chaos theory was very much in the public zeitgeist in a rather similar way to the internet from the late 1990s to early 2000s and artificial intelligence now. I have noticed mentions of chaos theory has started to pop up again as an idea in email newsletters. Fluke Chance, Chaos and Why Everything We Do Matters resurrects chaos theory as an analogy and hypothesis for everything from global politics to emotion-driven behaviours. The author Dr Brian Klaas is a social scentist by training and has taken a few leaves out of the Malcolm Gladwell school of writing with stories to pull in the audience. I would liked to see a bit more evidence-based findings in the book. But it is a good read.

    Things I have been inspired by.

    TheOrangeblowfish, a Shanghai design-led agency did an amazing retail / out of home activation for Arc’teryx museum on what looks like a 3D OOH execution a la Ocean Outdoor’s Deepscreen sites in the UK.

    Oliver’s white paper on How Brands Can Build Customer Trust looks at how brands can communicate about sustainability in their marketing. It’s a nice first step as a discussion document. There are a few areas I would like them to explore further:

    The gains earned by behavioural science are argued about, with practitioners relying on models that are often seen as overly complex and stacking of marginal gains. It has footholds in trying to drive meaningful changes in health, where small gains on paper mean a big change in lives saved, or made better. This LSE discussion on how it can be used to make democracy work better was interesting, especially given how many elections will be taking place in 2024.

    Finally this paper on the polarisation of popular culture is likely to affect the way marketers think about product choice, media and culture over time. Media buying itself becomes a political act, beyond advertising on overtly political media channels and indicates a widening of the lived experience gap in society. We could see this already in the UK with Brexiter favoured brands.

    Things I have watched. 

    The Knockdown – A Chinese drama where a Chinese Communist Party team goes to investigate a business and runs into widespread corruption. The corruption is centred around a fishmonger who gets tired of thugs and the grind of graft – he then reinvents himself as a gangster within the system. While it’s not Breaking Bad or The Sopranos, it is a good insight into how the Chinese government wants to see itself.

    Flic Story – Alain Delon plays a detective pursuing a dangerous criminal in post-war France. This is based on the true story of criminal Emile Buisson who terrorised France. I did wonder whether the roof top chase scenes influenced Jackie Chan’s classic Hong Kong film Police Story in terms of plot and tension rather than his acrobatic skills?

    Season 1 of Mr Inbetween had been recommended to me for years, people would rave on about it in the same way you hear about Breaking Bad or The Wire. A friend eventually sent me there copy on Blu-Ray. It has elements of Man Bites Dog about it – which makes sense when you find out it was originally adapted from Scott Ryan’s The Magician – a short fly-on-the-wall rockumentary film about a Melbourne underworld enforcer and occasional killer. Unlike Man Bites Dog – the violence is used sparingly in between the tedium of everyday life and office politics. Helen Mirren had apparently recommended it widely at the time. I am looking forward to season 2 which reputedly takes a darker turn.

    Useful tools.

    Sensia AI

    Sensia AI is an interesting set of tools for consumer brands to easily monitor satisfaction and potential problems with their products and that of their competitors quickly, with ease and efficiently. Sensia analyses diverse data, from online reviews to e-commerce; offering useful insights. I was looking at it for consideration with regards an FMCG project that didn’t come off in the end. If you are interested. Check out some sample reports here, and if it looks of interest – contact Iris Chung.

    Passport Online

    Travel this year? Passport ready

    I am an Irish citizen. The Irish government’s process to renew my passport and passport card via an online service was really easy. The service is called Passport Online and I couldn’t recommend it highly enough.

    Untranslatable

    Not necessarily something that you would use day-to-day; but definitely of interest during digging into market research transcripts or transliteration of campaigns across different markets and languages. Untranslatable is a dictionary of idioms and expressions. The creators are native speakers, so you get the different cultural nuances.

    New ways of using Miro

    If you work in brand or connections planning or have thought customer experiences you’ve probably heard of Milanote, Miro or Mural. They also came to the fore with COVID-19 as virtual workshops became much more of a thing. Recently, I have been experiencing new user cases for these platforms. To present:

    • Creative briefs.
    • Sharing creative with clients.
    • A quick folder that holds key documents and shows the links between them.

    Zettelkasten

    Trying to build that vast mental model to then wrap into a narrative for clients. Vicky Zhao revisits the analogue technique of Zettelkasten. Your mileage may vary. It does remind me of the way I use social bookmarking as a data bank and mind maps as a creative process in writing. I can also recommend Umberto Eco’s How to Write a Thesis for similar organisation ideas.

    The sales pitch.

    Now taking bookings for strategic engagements from April, or discussions on permanent roles. Contact me here.

    More on what I have done here.

    bit.ly_gedstrategy

    The End.

    Ok this is the end of my March 2024 newsletter, I hope to see you all back here again in a month. Be excellent to each other and watch out for any April fools tricks being attempted on you.

    Don’t forget to get in touch, share and subscribe!

    Let me know if you have any recommendations to be featured in forthcoming issues. 

  • AI two-step

    The phrase AI two-step is something I first heard from my friend Antony Mayfield. He used it to talk about how companies were adopting the latest developments in AI for business processes. And then reduce headcount to reflect the newly AI derived tasks instead.

    The AI two-step isn’t necessarily a new concept, companies like Pegasystems were using rules-based systems to take away the drudgery of back office work in banking and fund management for decades.

    Further back, companies like Experian, through their access to CCS’ CardPac software provided a service for credit card issuers in the UK using rules-based credit scoring and applications approval. This ran on time-shared mainframe computing resources, which also provided Experian with a good source of ongoing credit worthiness data. All of which reduced the back office work and employees needed by the credit card company. MBNA used to make a virtue out of having every decision reviewed by real live credit analyst, who could overwrite a scoring decision if they saw a compelling reason to do so. (CCS became part of First Data and eventually part of Fiserv).

    HAL 9000

    As these services were being rolled out, there was a corresponding cut in jobs.

    Examples

    Here are just a few examples of businesses adopting AI, some of which are prime examples of the AI two-step.

    IBM

    While IBM may no longer trumpeting its Watson AI service as loudly as it used to, AI methods are dispensing with the need to replace staff who leave the technology company.

    Pfizer’s Charlie

    One might think in the UK that Pfizer should have thought a bit more carefully about the name Charlie, but the aspiration behind the platform is interesting. Charlie was noted to be helping with content creation, fact checking and legal reviews. Research by Bain & Company have found that it isn’t just Pfizer in the pharmaceutical and biotechnology sector that are taking this approach. Some 40 percent of executives who were surveyed said that uses of generative AI were factored into their 2024 budgets.

    Bain indicated uses across a wide range of business functions within pharma:

    • IT programming code review
    • Competitive intelligence
    • Research and biomedical literature review
    • Marketing copy
    • Augmenting the selling process as a sales co-pilot and contact centre automation

    Publicis

    French listed marketing combine Publicis made a high profile adoption of machine learning and AI-based services back in 2017 under the moniker Marcel. Back then Marcel was being used for workflow type tasks and organisation of data. This year Publicis rebranded its approach to the less playful CoreAI, so far it has cut the use of freelance staff – which are usually essential for project delivery in ad agencies, rather than the usual AI two-step of lay-offs.

    UPS

    UPS adoption of AI techniques in everything from workflow to customer service allowed the logistics company to make the largest lay-offs in its 116-year history.

    Clear analogues to the AI two-step?

    Various commentators compare the AI two-step happening to the dot com boom of the mid-1990s to the early 2000s. The comparison with the dot com boom is easy at first. You have businesses that have phenomenal share price growth, widespread interest and experimentation. Business sectors from advertising to Hollywood are concerned about massive disruption.

    The examples I would think about would be factory automation and business process re-engineering. In factor automation, over decades companies used machines to negate the need for unskilled and semi-skilled workers. A friend of mine worked in Huddersfield in a textile mill. He was one of just a couple of people who worked a shift. None of them were weavers, they were engineers and an IT admin who maintained the lines of machines turning out high-end suiting fabric that was mostly sold to Japanese clothing manufacturers. This came very close to being a ‘lights out production line‘ where the product is handmade by robots as they used to say in the old Fiat car advertisements.

    Weavers and machine operators were replaced by a lot fewer, but more expensive roles.

    Business process re-engineering was driven by enterprises implementing enterprise software to drive efficiencies and automate workflows. This was a lucrative time for consultancies who were brought in to shape a company’s workforce and processes to fit a software company’s pre-defined template for that industry. This was usually based on average industry standards. Software giant SAP have been building and refining these templates for the best part of 50 years, each industry template draws on individual units that might cover a business function like HR, finance or asset management.

    A bit of software customisation was needed to fit a given business, and it might have to interface with third party products to handle market complexities such as different tax regimes.

    The consultancy teams also laid-off employees that didn’t fit the framework. That’s what business process re-engineering actually meant.

    Automation was responsible for putting up to 47% of American jobs at risk. However other research indicates that new forms of skilled or professional jobs are being created. One of the big problems with this data is that they are speculative models. More positive takes from businesses fuelling automation like McKinsey and Company versus more critical predictions from government think tanks and academics.

    Factory automation and business process engineering are both similar to the use of AI in business, in that they are primarily helping mature businesses maintain their position and drive efficiency. The dot com boom on the other hand was much more disruptive and spawning more upstart businesses – some of which were very successful and leaving mature businesses struggling to cope. From financial services to media – pre-internet businesses are still struggling to cope with the innovation and disruption that begat the dot com boom.

    Optimists versus pessimists

    The optimists highlight a number of nuances that they think mediates the impact of automation and machine learning over time.

    Tasks over jobs.

    It’s tasks rather than whole jobs are being lost. Yet if you look at the data that Scott Galloway shared in his newsletter and the speedy ‘these job losses aren’t down to AI denials’ this optimistic assumption is pure fiction. The jobs being lost are the second part of the AI two-step.

    Creative destruction.

    Jobs are being created too and it’s often about ‘skill shifts’ rather than ‘job shifts’. While there are redundancies being made, there is a requirement (at the moment) for people skilled in writing ‘prompts’ to get the most out of the AI models created.

    Overconfidence.

    Overconfidence in technology and what it can do. An extension of this is a belief in the perfectibility of technology. A classic example of this is Air Canada’s recently aborted use of an AI-powered customer service chatbot. The airline quietly pulled its chatbot offline after being found legally liable for bad advice given by the customer service bot to a customer.

    Moffatt booked airfares and retrospectively submitted an application for a refund to the reduced bereavement fare after travelling. Air Canada denied the request. Moffatt challenged that decision, saying he was owed the refund because he had relied on the information provided to him by the chatbot on Air Canada’s website. Air Canada admitted that the information provided by the chatbot was “misleading”, but it contested Moffatt’s right to a refund, highlighting that he had been provided with the correct information via the link the chatbot shared in its message.

    The Civil Resolution Tribunal considered whether Air Canda was liable for negligent misrepresentation, which arises under Canadian law when a seller does not exercise reasonable care to ensure its representations are accurate and not misleading. Moffatt was required to show that Air Canada owed him a duty of care, that its representation was untrue, inaccurate or misleading, that Air Canada made the representation negligently, that he reasonably relied on it, and that that reliance resulted in damages. The court held that Moffatt met those requirements.

    The Civil Resolution Tribunal noted that Air Canada had argued that it could not be held liable for information provided by one of its agents, servants or representatives, including a chatbot, but had not explained the basis for that suggestion. The Civil Resolution Tribunal rejected as a “remarkable submission” Air Canada’s suggestion that the chatbot was a separate legal entity that was responsible for its own actions.

    Air Canada chatbot case highlights AI liability risks by Meghan Higgins, Pinsent Masons

    Demographic change.

    Demographics – the idea that aging countries from the west to China, Japan and Korea have skills deficits due to population decline. Automation is one of the coping mechanisms alongside globalisation and migration that have been suggested solutions. The Chinese are also looking at building factories in countries like Ethiopia, who have a young and growing population. Automation makes sense where migration would adversely affect social cohesion and the cost of globalisation would be more expensive than automation technologies. Workers in the global south are dependent on being cheaper than machines, rather like the American legend of John Henry versus the steam engine.

    Companies like Automata have been looking to help businesses automate repetitive low skilled work, such as sandwich making in food service factories or low volume manufacturing tasks.

    John Henry Statue

    The state of automation in different roles is running along at different rates of progress. While John Deere have managed to make the most of arable farmland through the use of telematics and GPS guidance of tractors, automating farming for tasks like harvesting is proving more difficult. This is exasperated in the UK at least by the challenge of getting sustained venture capital for hardware. Technology automation in other sectors such as construction and healthcare continues to move at a slow pace.

    In an area like consumer electronics we have seen benefits and declines in automation. Benefits in the way a company like Apple can manage a sophisticated global supply chain workflow via automated software. Apple has also pioneered the use of robotics in dismantling its more modern smartphones when they are brought in to be recycled.

    The declining area has been one of design choice. Prior to the smartphone and broadband internet, companies like Panasonic designed circuit boards that were less dense with components. The reason for this was to facilitate automated board manufacture through the use of ‘pick and place’.

    Nokia used similar techniques for its cellphones and smartphones until the business was disrupted. Apple iPhones needed much more manual assembly because of the tightly packed components in their phones. Young women were valued for their small hands and manual dexterity leading to concerns about worker conditions.

    More work to be done.

    Creation of new jobs seems to be a matter of faith. IT in businesses drove an increased amount of management, the move online drove a need for webmasters, web designers and online marketers. There is an assumption that over time AI will have a similar effect, beyond people who can write prompts.

    Limiting factors

    Technology

    While GPT based models have surprised both in terms of what they can do and fail to do, there is a belief amongst experts that:

    Data sets will only get you so far. There is no clear path to a new technique, or what older techniques would need to be combined with GPT-based systems. Of the data sets out there, a significant minority could be filled with ‘poison’ data like nightshade.

    That there isn’t enough data to train models in a lot of cases and synthetic data is often used instead. Others believe that this will corrupt and stunt future AI models rather than help them.

    Resources

    AI systems like crypto mining consume a lot of energy and require a lot of water for cooling which is already straining data centres and infrastructure. All of which will impact corporates ESG profile and larger investor relations health. You could have an amazing AI model, but if you have as bad an ESG rating as Exxon you willl struggle to raise funds.

    More information

    Corporate Ozempic | No mercy / no malice

    No, Robots Aren’t Destroying Half of All Jobs | London School of Economics (LSE)

    Antony Mayfield – Antonym newsletter

    AI feedback loop will spell death for future generative models | TechSpot 

    Mixtral 8x7B: Quality, Performance & Price Analysis | Artificial Analysis 

    AI-poisoning tool Nightshade now available for artists to use | VentureBeat 

    AI sucks at telling jokes — but it’s great at analyzing them | The Next Web 

    At WEF in Davos, Sam Altman and Will.i.am differ on AI | Quartz 

  • CMOs

    Premature obituaries of CMOs

    Almost 11 years ago business academic Dominique Turpin wrote an article describing CMOs as ‘dead’. Turpin worked at the IMD business school in Switzerland and the article was a classic bid for thought leadership.

    UN Women Global Innovation, Technology and Entrepreneurship Industry Forum
    Alicia Tillman, CMO at SAP AG until 2021, at the time of writing CMO at Delta Airlines

    It’s just the kind of thumb-stopping headline that drives readership of LinkedIn content where it was published.

     … the decline in the CMO’s influence is alarming, especially at companies that claim to put the customer first but in reality are product-driven.

    True, some companies have marketing in their DNA, especially firms that had a visionary founder with a great understanding of the customer. Examples include Ingvar Kamprad at IKEA or the late Steve Jobs at Apple.

    But these are exceptions. The norm these days is that the CEO sets the overall strategy, the R&D and innovation teams design the product, and the CFO determines pricing and departmental budgets. No wonder some CMOs feel unloved and are considering a career change

    Dominque Turpin – The CMO is dead (August 21, 2013)

    Turpin goes on to explain what he believes that there are four causes, that together result in no CMOs.

    • Most CMOs aren’t focused on planning and delivering customer value
    • Short-termism has meant that organisations have become CFO-focused – a la ‘Neutron’ Jack Welch’s perception of shareholder value, rather than a balanced scorecard approach
    • Marketing impact is hard to measure
    • Organisations lack a clear understanding of what marketing is

    Instead Turpin wanted to create a CCO role – chief customer officer. He saw that this role could sit with the CEO, the CFO or the former CMO. While the CFO as CCO might take the fuzziness out of marketing as Turpin put it, there would be a tension between their natural ‘ neutron Jack Welch’-nature and being customer-centric. What about the CEO? Turpin pointed out that they tend to come from engineering or finance. Both are efficiency focused disciplines with incremental short-term views. Again both are barriers to customer-centricity and would be largely blind to long term effects.

    3G Capital

    Move forward six years and a CFO-driven approach to running Kraft Heinz by 3G Capital saw a massive destruction of value some $15.4 billion from the $50 billion paid to buy out the business in the first place. The quarterly dividend got cut and shareholders filed lawsuits. The founder of 3G Capital talked extensively about the GE Way driven by Jack Welch as a key influence on their approach.

    Scott Galloway

    Scott Galloway

    Professor Scott Galloway is a serial entrepreneur who is provocative, interesting and often right.

    On CMOs Galloway said

    “If you’re the CMO that shows up and says ‘I need more budget so that I can do a brand identity study, can spend money on advertising and get invited to great conferences and hang out with people who are more interesting and better looking than me by spending media dollars that are less and less impactful’ then you’re like the second lieutenant in Vietnam — you’re dead in 18 months or less,”

    Scott Galloway

    There is a lot to unpack in that statement, but it doesn’t spell the end of the CMO or advertising.

    Pax Americana to Pax Australis

    In this post Galloway taps into a wider criticism that we’ve seen of American marketers over the past few years. When I was in college American professors and marketing thinkers set the tempo for the profession around the world. As Mark Ritson recently wrote

    In the 20th Century marketing was American. The discipline, the theories, the textbooks, and the approach. To arrive at Wharton in 1994 was to see a future that was not just untenable in the UK, it was one nobody back home was even aware of. Marketing was a decade ahead of anything in the UK. The American marketers I met, academics and practitioners, were so advanced it made my head spin.

    Mark Ritson – Effectiveness ignorance has left American marketing lagging behind the rest of the world (Marketing Week)

    Text books by the likes of Philip Kotler and David Baker, were perceived wisdom of old white academics. None of this thinking was evidence-based; beyond anecdotal successful case studies.

    One of the ‘secrets’ that marketers and CMOs at large FMCG companies like Mars, Proctor & Gamble, Kellogg’s and Unilever had was access to Australian based marketing science research. This was primarily via their long-term sponsorship of the Ehrensberg-Bass Institute in Adelaide, Australia.

    This body of research in turn shook up wider marketing thinking when Professor Byron Sharp published How Brands Grow. (There were other important works as well such as the UK based publications from the UK’s Institute of Practitioners in Advertising – notably The Long and The Short of it and Effectiveness In Context).

    While marketing outside the US was shaken up by the works of Sharp and Binet, the US continued onwards in its marketing the way it always had.

    Mark Ritson’s recent column on the state of American marketing caused international furore in the marketing community, despite Marketing Week being a UK-only publication. Ritson complained about American marketers lack of awareness about the importance of marketers effectiveness.

    This comment on Mark Ritson’s post sharing the article, while humorous has a lot of truth in it:

    Okay, okay. Stop throwing big words like vituperative and effectiveness at us simple-minded Americans. Sure, we handed the keys of marketing over to software engineers at the turn of the century. Maybe that led us to a fair bit of myopic strategery here in the very exceptional United States of America.

    Based on the comments I’ve read, when asked to define effectiveness the answer provided is essentially #IYKYK. Why let a golden opportunity to school American marketers on the wise ways of the world beyond our ample shores slip through your fingers?

    I don’t care if you call it Marketingwirksamkeit or efficacité du marketing, what matters is more than just numbers on the scoreboard, but how the points were won. Just the other day I was reading a scholarly piece on the effectiveness of meme marketing by the faculty of Griffith University in Queensland. It hit me. My American, effectiveness ignorance has blinded me. I now lag behind the rest of the world.

    Michael Simmons, Sendofy

    While the US obsessed over marketing technology, the rest of the world was attempting (imperfectly) to more knowledge about marketing efficiency and the marketing technology stack. Having worked in the technology sector, it was the last place I would have gone for marketing lessons. At best, marketing as a function was sales support.

    A case in point in this mis-application of focus was the relative performance of this year’s Super Bowl advertisements. I realise that this delve into marketing efficiency has at least made the case for a dramatic change in US-based CMOs. But not so fast, CEOs don’t think that their CMOs and marketing teams are performing that badly.

    CMOs: from the dog house to the boathouse

    American agency Boathouse have been doing an annual survey of CEO attitudes to marketing and their CMOs. The third edition of this survey was published in January this year.

    Some of the highlights of the report include:

    • CEOs identified what they want their CMOs and marketing teams to address: driving growth, market share/sales, differentiation, improving brand reputation, and “transforming company narrative.”
    • 49 percent of CEOs believe their marketing team is “best in class.”
    • 40 percent of CMOs are rated “best in class.”
    • One point I found quite interesting was that half of CEOs believe the short tenure many CMOs have “is a sign of success, not failure.”
    • CMOs’ perceived trust with C-suite stands at 43 percent and 41 percent with the CEO. This has doubled over the three years that Boathouse has been running this research project
    • In a bit of an odd note: CEOs believe CMO loyalty is growing, stating that “in a dramatic shift from 2021, the CEO’s perception of CMO loyalty is growing, [as] 8 in 10 CEOs perceive CMOs would take a bullet for them (up from 3 in 10 in 2021).”
    • 76 percent CEOs are “integrating A.I. into their organizations” and 90 percent believe that 90 percent of their CMOs are engaging with AI for the benefit of the company in areas such as “content, analytics (about two-thirds), and customer experience or research (half).”

    TL;DR CMOs don’t sound as if they will be disappearing in the next 18 months or so as Galloway believed.

    C-suite without powerful CMOs get punished.

    You could argue that CEO are the ultimate arbiters of CMO success, failure and tenure. But the reality for public companies is the large investors who can vote the CEO of most companies out of office. The key influencer in this decision process is the equity analysts who sit within, or advise client organisations such as fund managers.

    equity analyst

    Even if CEOs don’t think that their marketing is important enough to have a CMO, their shareholders will. Equity analysts have indicated that they rate brand strength and marketing as more important than reported profit, or leadership quality.

    Given that most of the c-suite can’t speak or do effective marketing, they really need their CMOs. Companies like 3G Capital and Reckitt Benckiser have been punished in public markets for failing at marketing, despite operational and financial excellence. Unilever has been punished for its focus on ESG at the expense of brand building and is even under regulatory investigation.

    More information

    “You’re Dead In 18 Months Or Less”: Scott Galloway On The Future Of CMOs – B&T

    UPS’ Removal Of CMO Role Reveals The Real Problem Facing The C-Suite

    Boathouse CEO Study on Marketing and the CMO | Boathouse

    Fortune 500 companies are cutting CMO jobs | Fortune

    The Unspoken Truth About CMO Churn | AdWeek

    Marketers, investing in market research is not superfluous | Marketing Week

    Gartner Survey Shows 73% of CMOs Will Fall Back on Low Risk, Low Return Strategies for 2021

    9 recent CMO departures that point to the radical transformation of marketing | Marketing Dive

    Mark Read: CMOs have become too much like chief communications officers | PR Week

    Coca-Cola’s decision to scrap the CMO role for a CGO should begin to pay off anytime soon | Observations In Marketing | The Thinking Marketer