ICYMI | 万一你错过了| 당신이 그것을 놓친 경우

Naughty List – Secured.fyi – Alpha – great simple checklist for n00bs. The answer per platform needs more nuance

Justice Dept. Revives Push to Mandate a Way to Unlock Phones – The New York Times – Clipper Chip style bullshit that is bad for consumers and governments since it will be broken and used by criminals and state actors

Sex Workers Say Porn on Google Drive Is Suddenly Disappearing – Motherboard – don’t assume that the contents of your Google Drive hasn’t been thoroughly examined by Google. Adult entertainment is merely the canary in the coal mine for privacy.

Is Facebook Really Scarier Than Google? | Nautilus – worthwhile reading about the effect of Google – of course they both have an impact otherwise you wouldn’t advertise on it. The question needs to be does the utility justify the impact? I think search has a better case than a social network, but both have merits

The unparalleled joy of writing with a fountain pen – and five beautiful pens to inspire you – Country Life – Among the obituaries of a former Conservative Minister a few years ago, there was one delightful snippet. A line in The Daily Telegraph described how, when she received the letter from Mrs Thatcher appointing her to the Lords, Lady Blatch initially believed it to be a hoax, because the letter was signed in Biro and she had been ‘brought up to believe that nobody who matters uses a Biro’.

Why Nothing Is Going To Happen To Facebook Or Mark Zuckerberg | Buzzfeed – consumers don’t care enough

China’s Huawei Technologies reshuffles board for first time since 2012 – I presume the reason why Mr Ren is getting back behind the wheel is that overall and smartphone revenue figures for 2017 was Huawei’s slowest growth in four years. I am not convinced that  premium products will be the way forward when they are locked out of the North American retail system. I am also not sure why the management team at Huawei Mobile Devices hasn’t been refreshed

Cloak and Data: The Real Story Behind Cambridge Analytica’s Rise and Fall – Mother Jones – probably the best account yet by the media

Restricted By YouTube, Gun Enthusiasts Are Taking Their Videos To Pornhub | NPR – Pornhub is starting to turn into a libertarian YouTube

Has Marketing Gone Too Digital? | Mediapost – a good read, send it to your clients and your agency folk

Cigarettes are the vice America needs | FT Alphaville – Cigarette smoking is essentially the anti-Facebook. While Facebook is a fundamentally misanthropic venture that pretends to be a community, smoking is a community activity for people who pretend to be misanthropes.  The activity itself is fundamentally pro-social! It gives people reasons to interact with strangers (“got a light?”). And since it was banned indoors — undeniably a good choice — it gives people a reason to go outside and make idle small talk, all while pursuing a common activity. And unlike alcohol, cigarettes alone don’t often lead to property damage or missed days of work (paywall)

China’s young consumers are snubbing foreign brands amid growing national pride, says Credit Suisse | SCMP – this should share the shit out of MNCs

Google has reportedly acquired Lytro, the Leader in Light Field Imaging Technology for Photography and VR Content – interesting, Apple had a patent licence from them

Interpublic Upgrades U.S. Ad Spending Growth To 5.5% This Year – which looks much more like what I would expect the advertising market to be with the Winter Olympics and forthcoming World Cup and an ok global economy

Building for the modern web is really, really hard | O’Reilly – average website clocks in at 4MB with 100s of elements including 3rd, 4th and 5th party based interactions – which also explains page load times – and slow AF ad related technology such as trackers

Mobike to charge bad riders more | Techinasia – a la eBay, Uber etc

Study: Smart Speakers are Changing the Way We Select Products – interesting how this is impacting retail. FMCG brands in particular should be really concerned as this is far beyond what supermarkets could do with dodgy shelving layouts and look-a-like private label brands

The Valley of Death: the students vying to be millionaires | Telegraph – In 2015 Oxford, the UK’s number one university for research, produced four spin-outs. Not per professor. That was for the whole university. The situation was not better elsewhere. Data on British university spin-outs is not in any publicly available league table. But it exists, via what’s called the HE-BCI survey (it stands for Higher Education – Business and Community Interaction). For 2015-16, Cambridge University recorded a total of two spinouts in the HE-BCI survey. Imperial College London, another of this country’s most vaunted research universities, listed three. Of 160 institutions, 59 officially produced no spinouts at all.

Does it Really Matter if James Jebbia is Not a “Fashion Designer”? The Fashion Law – Supreme is an anti-consumerism consumer brand. Its now going into luxury baskets, it doesn’t have much room left in the hype beast space though

Alex Stamos, Facebook Data Security Chief, To Leave Amid Outcry – The New York Times – Some of the company’s executives are weighing their own legacies and reputations as Facebook’s image has taken a beating. Several believe the company would have been better off saying little about Russian interference and note that other companies, such as Twitter, which have stayed relatively quiet on the issue, have not had to deal with as much criticism

Our mission to buy a fake Rolex on Facebook reveals how the company is playing host to countless criminal enterprises | Business Insider – only a matter of time for this story to be written. You also have a similar problem on Instagram

Millennials: you will not be quite so special in the ‘futr’ | FT – could it be that millennials, the most scrutinised, criticised and debated generation of our time, were not that special any more? “Millennials are still important as a customer,” Ms Ganatra told me later. But there is now a “millennial mindset” that has nothing to do with age, she said. In other words, millennials may have been the first generation to have grown up in a digital world but the rest of us are catching on fast. People of all ages are now so used to shopping with a click or talking to a chatbot that retailers need to think about the needs and desires of all their customers, not just those born between 1981 and 1996 – or an artificial construct in terms of their digital uniqueness

 

The advertising industry post (prompted by WPP’s 2017 financial results)

Sometimes the most straightforward posts take the longest to write. When I started on this one last week the big question in the minds of people who watch the big advertising conglomerates is are WPP numbers a company problem or an industry problem?

Fortune Global Forum 2013

WPP is looking to simplify its structure with a view to becoming a more agile and transparent business from a client perspective.

Or as it was put in the New York Times

WPP plans to accelerate a programme to simplify the business by aligning digital systems, platforms and capabilities to provide bespoke teams for its clients as opposed to the different agencies that currently compete with each other to win contracts.

Other conglomerates, notably Publicis had already started on this path when it started realigning the group under the ‘Power of One’ vision. WPP is bigger with a fuller offering and wider range of specialisms than many of its peers, no one can be under the illusion about the size of this undertaking.

Let’s talk about the tectonic plates shifting around beneath the feet of ALL  the large advertising and marketing combines:

  • Interpublic Group (IPG)
  • Omnicom
  • Havas
  • Publicis
  • WPP
  • Dentsu

The tectonic plates are:

  • The Four
  • Amazon
  • The decline of brand marketing
  • The new competition
The Four

The Four is a label that Professor Scott Galloway put on Apple, Amazon, Google and Facebook. All of whom he considered to be monopolists that created value for their shareholders by putting the ‘real world economy through a shredder.

In this case I would swap out Amazon and Apple for Alibaba and Tencent, but the allusion to a quartet of horsemen portending a digital apocalypse is a useful allegory for the advertising and marketing sector.  Amazon deserves a section of its own later.

Galloway’s predictions of their destructive power led to an accurate prediction of WPP’s share price tumble this week. (see the video below)

Correlation does not prove causality however — it doesn’t mean that he got the right numbers for the right reasons.

Depending whom you believe Facebook and Google are responsible for 90 percent of online advertising growth outside of China. This represents a massive concentration of media power. It has implications for the creative and planning functions of an agency. Google and Facebook also run much of the advertising technology that purchase are made on. This has decimated much of the advertising technology sector and made it harder to differentiate media planning and buying based on the technology stack.

1707 - ad industry

L2 came up with this research last year based on Google and Facebook revenue targets. If they hit their numbers they would be treating around 14,193 jobs. But it would mean that the corresponding projected number of jobs lost in the advertising industry would be roughly the equivalent of every man and woman around the world employed at vehicle maker Nissan. And that’s just 2017.

L2’s calculations don’t take into account China where the advertising industry has been digitising at a much faster rate than in the west with the bulk of growth going to companies controlled by Tencent or Alibaba.

Given that most of the agencies within WPP and its peers operate on a billable hour model; this represents a considerable potential loss of value. Since the number of people directly equates to revenue.

The consolidation of online media also means that many clients will look to take back control of their media planning and buying process. The argument goes something along the lines of ‘a consolidated media landscape allows for consolidated buying by a global media trading desk due to the inherent simplicity in suppliers. The data comes from the inhouse data management platform and the media vendor (Facebook, Google, Tencent or Alibaba)‘.

The always on creative needed to fuel this process is also being increasing done in inhouse studios, in partnership with their creative agencies as a kind of hybrid model.

This is what Marc Pritchard meant when he talked about taking back control of Procter & Gamble’s marketing as part of a process to save $1.2bn by 2021.  In the latest financial results, WPP claimed that their media buying margins had not suffered – only creative had.

Amazon

At the time of written Jeff Bezos is worth about 112 billion dollars, or just under double the annual defence budget of the UK for 2018. Amazon impacts the advertising and marketing industry in multiple ways.

It is starting to become a big player in online advertising in its own right. I think it would be fair to say that this competition to Google is welcome for the marketing conglomerates judging by Sir Martin Sorrell’s commentary on the likes of CNBC.

Amazon has decimated the high street. Toys R Us, Borders Group, Tower Records, Radio Shack, Maplins are just some of the names which have disappeared. It took a good number of years for people to realise that retailers are locked in a zero sum game when Amazon competes against them. Amazon has unique access to exceptionally cheap capital via its shareholders. There have been companies who have beaten it back like Alibaba’s Taobao and TMall in China. But the company has built up a huge amount of retail power and decimated brands that would have been advertising agency clients.

Amazon has become the default search engine for buying things. This has already displaced up to 20 percent of Google searches depending on whom you believe. It also means that they can place imitation goods and private label goods against branded products.

Amazon has got great data. Amazon has data at the centre of its business what consumers like, what they don’t like, what sells well on marketplace resellers. This has driven a number of the product decisions:

  • Increasing customer basket sizes
  • Expanding into new areas by screwing over marketplace resellers
  • Focusing their efforts on private label products which directly impacts branded products across categories. Amazon Basics is the most obvious private label to consumers, but there are many more where the link isn’t so obvious

Depending on your brand category the answer may be:

  • Owning your own retail chain like Apple or LVMH’s DFS Group
  • Direct sales and subscription services have piqued the interest of FMCG brands like Dollar Shave Club

All of this impacts the advertising sector. For more information on the power of Amazon, I can recommend Scott Galloway’s The Four.

The decline of brand marketing

The relative decline of brand marketing has been driven by a number of factors, some of these factors are good and some aren’t.

Let’s talk about the good reasons first of all.

  • ‘Performance marketing’ driving customers directly to a sale has been transformed by the rise of modern online advertising techniques including search advertising and retargeting. Retailers can zero in on intent to a much greater degree than shopping television or direct response print adverts ever could. Google and social media have turned into reputation platforms which then displayed below-the-line spend from the likes of public relations agencies. This was happening at a time when journalist employed by publications have declined; implying a natural progression
  • At least some consumers can’t be reached through traditional media channels with sufficient frequency for brand advertising. Social media, online video and banner ads make sense as part of an omnichannel approach

The bad reasons:

  • The focus on ROI rather than profits has meant that a balance longer term brand building and shorter term sales has fallen out of kilter. Marketing then becomes a reductive process. To use a farming analogy; its like moving from arable farming with crop rotation to slash and burn. This is particularly noticeable in the way private equity management has affected fast moving consumer brands under its control. Zero-based budgeting is seen as a source of cost cutting rather than ensuring the efficient and effective use of marketing resources
  • Digital first strategies – for many marketers this has meant a move from media-neutral, let the communications problem define the channels used to a digital dogma. I make my living with digital media, but I recognise the flexibility required in thinking to deliver an effective strategy

It isn’t about one approach over another but finding balance that works for sales now and in the future.

The new competition

The rise of digital advertising has seen business services expand ways that we couldn’t predict. Advertising agencies like Ogilvy understood the potential for digital early on. Consultancies were focused on systems integration and the use of technologies to change business functions. As they became interconnected internally and externally; the progression into marketing made sense.

A reduction in creative budgets caused marketing agencies to move into areas like service design. Consultancies have looked to inject creativity into their values and skills set by mirroring the kind of acquisition strategy that built the marketing conglomerates.

In the meantime technology companies, notably Adobe have treated marketing like any other business function with a sale conducted at the c-suite level just like Oracle or similar. In many respects this move is understandable as companies use a data management platform (DMP) to derive audience insights and improve their digital marketing. This isn’t vastly different from historic data warehousing and data mining applications.

The enterprise software companies allow large companies to do internally what they have previously asked media agencies to do.

More information

WPP raises spectre of adland stagnation – Breakingviews (paywall)
WPP Vows to Do Better After Weak Results, Nervous Outlook Send Shares Plunging – The New York Times (paywall)
I Cannes – L2 Research
P&G brand chief vows to ‘take back control’ from agencies | FT (paywall)
Sorrell admits creative is hurting more than media as WPP shares plunge | CampaignLive (paywall)
Amazon is threatening Google’s ad space monopoly, Martin Sorrell says | CNBC

Instagram: we need to talk about fakes

I’ve noticed these kind of accounts popping up on Instagram over the past few months.

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Interesting shots probably re-grammed from the brands marketing materials or a magazine shoot. Going through to the site….

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Great site design. Only the URL and the prices give it away as fake goods. For those who aren’t as sophisticated Facebook now has its classifieds section. Think Gumtree but inside Facebook.

Here’s a second example, this time replicas of BAPE’s iconic shark head hooded top.

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This time they are selling the products through Amazon merchants accounts

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Instagram has a lot of heat from brands, but this could turn very quickly when they realise that Instagram can be a facilitator of fake products sales. Look at how Alibaba and eBay have been vilified in the past.

Personal online brand

Ketchum’s David Gallagher wanted to know whether he should have his own website? He initially felt that publishing on Facebook and LinkedIn was enough. Wadds like me felt that owning your own platform was important.

Why?

  • LinkedIn and Facebook don’t have the same agenda as you. Your content becomes a hostage to their business whims
  • It is hard for users to discover your content, Facebook and Google make it so
  • Even on Medium you no longer really own your content. It can’t be easily exported like content on the Blogger platform
  • Even in the world of Facebook, Google is still a reputation engine

So show do you manage the process?

You need to find a system that works for you. Here is what mine looks like.

1801 - personal publishing

IFTTT – if then, then that. A service that allows you to trigger actions based on pre-created inputs. It allows rules to be built up based around different inputs:

  • A new post via RSS
  • A favorited tweet
  • A photograph tagged with a particular label or hashtag

It supports numerous services including Flickr photography and pinboard.in

Buffer – buffer is a social publishing tool. I have pre-scheduled slots. It is also compatible with publishing posts sent via IFTTT.

Pinboard.in – pinboard is a way of storing your bookmarks with notes and tags online rather than on your computer. Your bookmarks then become accessible wherever you are. It is handy to be able to search things that you have found previously. Google seems to have moved away from organising all the world’s information to mainly focus on ‘now’ content. Pinboard helps you get around this.

Indra Nooyi, PepsiCo & Doug McMillon, Walmart talk about the intersection between brand and product

This is from last year and there is a lot of filler but interesting discussion about the intersection between brand and product.