Category: business | 商業 | 상업 | ビジネス

My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.

At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.

I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.

Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.

I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.

Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.

  • Batteries + more things

    How Batteries Went From Primitive Power to Global Domination – Bloomberg – but has the technology moved on at a pace to really justify this upsurge? The chemistry in lithium ion batteries was developed back in the 1970s and commercialised by Sony and Asahi Kansei, with the first batteries appearing in 1991.

    Beans – pretty sure that this isn’t an ad, but nicely played. It looks and feels more like a creative calling card that are usually sent to agencies. In this case the video effects house that created this animation. You have a mix of computer animation, green screen backdrop for the moon and . More related content here.

    Fifa threatens action against BeoutQ for infringement of broadcast rights | The Drum – this is interesting. beoutQ is a pirate pay television broadcaster serving Saudi Arabia. Established in 2017, the service primarily simulcasts the programming of Qatar-based broadcaster beIN Sports, with beoutQ on-air logos overlaid over the original ones. beoutQ has similarly taken content from other broadcasters, and its set-top boxes also contain access to various IPTV services carrying other forms of live channels and entertainment content. The service launched shortly after beIN was forced to stop selling its services in Saudi Arabia, due to the then-ongoing diplomatic crisis between Qatar and other Arab countries over alleged government support of terrorist groups. beoutQ set-top boxes and subscriptions have since become widely available in Saudi Arabia. The owners of beoutQ aren’t known. It is suspected that they may have a connection to the Saudi government as it was considered to be a way of attacking Qatar-owned media that come under the gulf states stand off with Qatar.

    Opinion | Hey Boss, You Don’t Want Your Employees to Meditate – The New York Times – nails it. Why mindfulness and meditation isn’t great for a lot of businesses.  (paywall)

  • H1, 2018 most popular posts

    Happy Back to the Future Day

    I took a little bit of time to reflect on the content that I have been writing, what can I learn from it and how I can reuse these learnings? Specifically what are people finding of interest? This couldn’t happen without people actually reading the content, so thank you for reading; feel free to come back on a regular basis. Over the past six months readers like you have found the following articles of most interest. In reverse order

    Reuse, Re-edit, Remix and Recycle – if you read the industry publications we here about personalised ad creative driven by ad targeting. But often the core creative and is created unnecessarily. Instead, what’s the minimum viable creative tweak that can be used? How do we extend the smart processes of reuse, re-edit, remix and recycling into this world?

    This Wasn’t The Internet We Envisaged – in the word’s of Terry Pratchet:

    “If you do not know where you come from, then you don’t know where you are, and if you don’t know where you are, then you don’t know where you’re going. And if you don’t know where you’re going, you’re probably going wrong.”

    So it was time for reflection in order to get a perspective as the regulators and media discovered Facebook, Google and Amazon where not models of virtuous conduct.

    The Biggest Public Relations Agencies Stuckness and Market Dynamics – The Holmes Report came out with their top 250 (biggest) PR agencies around the world in terms of billings. I decided to delve into the numbers for financial years 2014 – 2017.

    This supports a hypothesis of slowing market growth and solidifying market dynamics at a macro level. Strategic acquisitions start to make less sense compared to improving efficiences and effectiveness.

    Throwback Gadget: Bose Wave System – usually my gadget reviews tend to be some of the better performing content. The Bose Wave review was the only one that appears this time around.

    Social Networks 10 Years Ago – a reflection on what a more diverse social media eco-system looked like.

    The Advertising Industry Post – the macro effects buffeting the world’s largest marketing services conglomerates.

    Mercedes China Syndrome – Chinese netizens are jumping the Great Firewall to vilify western brands who reflect views that ‘offend the Chinese people’ – even when this content is aimed at non-Chinese audiences. Mercedes’ offence was an Instagram image with one of their cars and a quote from the exiled Dalai Lama

    Personal online brand – at a time when we’re seeing social media turning into walled gardens. David Gallagher asked the Twitterverse if he should have his own site?

    Twitterverse: @wadds says I need a proper blog. I say I can do it on LinkedIn or Facebook. What say you? Build my own?

    I weighed in on why he should and how I manage the process.

    Chinese smartphone eco-system for beginners – Winston Sterzel did a good video for the average bystander on the Chinese smartphone eco-system. I thought it was a good film to share with marketers  – with a bit more background information answering some of the ‘why’ in terms of market dynamics.

    App constellations 2018  research – I built on work that I had done in 2014 and 2016, comparing the rate of growth across different companies apps based on Fred Wilson’s definition of app constellations. This was also the post that took me the longest to research!

    SaveSave

  • PornHub VPN & other things this week

    PornHub are one of the more interesting brands out there at the moment. Yes I did just write that last sentence. They’ve been hosting content that might be considered transgressive but isn’t porn, they have their own clothing range and a collaboration with New York streetwear brand Richardson. Their Asa Akira t-shirt is well tasteful and office-friendly. Seriously.

    They’ve now launched their own VPN service, which makes sense given what they know about getting streaming to work across networks.

    2B-Alert Web – is US department of defence funded research on optimising your caffeine intake. They are looking to have personalisation options and apps in the future.

    Liquid crystals can be trippy to look at through a microscope. I remember seeing something similar to this eons ago when I spent a bit of time in a Corning lab in North Wales. The lab is now a grass field next to a Toyota engine factory.

    Audi is in the process of launching its new Q8 SUV. They’ve taken a leaf out of BMW’s book; creating an online-only mini-series that initially reminded me of BMW’s The Hire. Good on Audi for signing off on a project like this.  I was a bit disappointed in the execution, it needs work: Q8 Unleashed.

    I’ve talked here before about the market dynamics driving streetwear upmarket to the point that it resembles the eco-system around Hermes’ Birkin bags – part luxury good, part financial investment. This Google talk from Stock X riffs on the theme. Stock X aren’t alone; there are a number of competitors as well as traditional online auctions eBay and Yahoo! Japan.

    https://www.youtube.com/watch?v=3hd8lpHIIEc

  • Three and Superdrug + more

    Three and Superdrug launch new UK MVNO | total telecom – the MVNO deal with Three and Superdrug is a natural deal. Three and Superdrug are both owned by CK Hutchinson Holdings. The interesting bit is the cross business CRM where Three and Superdrug have got together to Superdrug drive loyalty card adoption. More retail related content here.

    THE LONG AND THE SHORT OF IT needs THE WRONG AND THE SHIT OF IT – BBH – interesting essay. The challenge is where do you get ‘crap’ campaign data from and how well will it be documented?

    Meet Kakao: How Korea’s Largest Mobile Giant Is Embracing Blockchain – CoinDesk – some smart critical thinking

    The Canard About Falling Incomes – WSJ – not an argument that I agree with, but Kessler argues that increasing digital features (like ABS on cars) compensate for the hollowing out of the middle classes (paywall)

    Tesla Model 3 Gets CR Recommendation After Braking Update – Consumer Reports – Teslas inspire a ‘true believer’ type following. I am leery of their ‘always in beta’ car software approach because its a car. So I am more concerned rather than delighted the that company managed to bring its braking distance closer to standard using an other-the-air software update

    Right Media, Creators of the First Ad Exchange | NYMag.com – the rise and fall of Right Media

    Chinese firms pile in to sponsor World Cup 2018 amid Fifa fallout-Sino-US“Chinese companies get two things from sponsoring the World Cup. The first is access to western audiences that they will sooner or later be trying to win over, as their companies expand. The other is a cosmopolitan veneer to their brands, which they hope will resonate with their sizeable domestic markets.” – interesting that BBK’s youth brand Vivo rather than Huawei is the smartphone sponsor

    Grace Dent: ‘The processed food debate is MSG-sprinkled class war’ | Life and style | The Guardian – I would align it more with a Neo Victorian patrician attitude towards the working class

    Cross border insights finder – handy Facebook ad tool

    ‘I make £45k a month buying clothes for other people’ – The FT catches up with diagou 15 years after everyone else. China’s changes in luxury tax, increased travel of consumers, restrictions on capital flight, clampdown on corruption and e-tailing has had its toll on diagou

    Smart bulbs turn dumb: Lights out for Philips as Hue API goes dark • The Register – I get the benefits of technology but why does heating, lighting or other smart home controls have to be mediated through the cloud?

    Holiday Rentals, Homes, Experiences & Places – Airbnb – AirBnB launches stories which seems to be a continuation of its magazines

    What is a smartphone? | ASSA – really nice essay on smartphones and consumer behaviour

    Shenzhen’s tech innovation hothouse overheats – it’s been going on for the decade or so that I have travelled there. The unaffordability, maker spaces which are a real estate ruse to suck government grants and a grinding life pace. Financial services and design have already moved in. Your in less need of maker spaces when workshops can build working prototypes for you

  • The limits of the IPA’s The Long And The Short Of It

    The IPA’s The Long And The Short Of It (TLATSOI) has been a north star for agency strategists since it was published in 2013. It’s now been out there long enough to understand the limits of its approach.  This post started with a blog post that talked about the IPA’s The Long And The Short Of It (TLATSOI) role in the planning and strategy process of the ad industry.

    Thermometer

    The Long And The Short Of It Needs The Wrong And The Shit Of It. Feel free to go and have a read and come back.

    The Limits

    The IPA’s original research had flaws that dictated the limits in the methodology:

    • Focusing purely on successes brings in biases due to the research being taken out of context. Context provided by the ‘complete’ population of good, mediocre and awful campaigns rather than award winners
    • There aren’t any lessons on how not to truly mess up

    TLATSOI isn’t a LinkedIn article

    Its easy to throw shots over the table when someone has done a lot of work. TLATSOI isn’t an article on the ‘five morning habits of Warren Buffet’ to make you successful.

    Les Binet and Peter Field analysed 996 campaigns entered in the IPA Effectiveness awards (1980 – 2010). That would have taken them a considerable amount of time to do. They then managed to write it all up and distill it down into a very slim volume on my bookshelf.

    The work is an achievement and Binet & Field deserve our gratitude and respect. Secondly, other marketing disciplines don’t have their version of TLATSOI. We couldn’t critique TLATSOI if it didn’t exist.

    Let’s say we want to stand on their shoulders and build something more comprehensive than TLATSOI. Just what would it take?

    The limits of working with what you have

    Binet and Field worked with what they have. If you’ve ever written an award entry you’ll know pulling it together is a pain in the arse. 996 award entries represents thousands of weeks of non-billable agency time. This was also strained through their empirical experience in the business, which adds a ‘welcome’ bias.

    Now imagine if that kind of rigor in terms of documentation and analysis was put into mediocre campaigns. The kind of campaign where the client logo barely makes into the agency credentials deck.

    Without a major agency (nudge, nudge, wink, wink BBH) providing all their warts-and-all data, the initative won’t start.

    It will be hard to get what is needed. Agency functions aren’t geared up to deliver the information. A technological solution would take a good while to put in place; and like all IT projects would have a 70% failure rate.

    In an industry where careers are made and talent attracted on ‘hits’; theres a big chunk of realpolitik to address.

    How would you keep a lid on the dirty laundry?

    We live in a connected world. To the point that there are now likely to be four certainties. Birth, death, taxes and data breaches. Imagine a data dump, some Excel skills and what was a bit of snark would do to an agency’s reputation? The stain of an ad agency equivalent of the movie industry Gold Raspberries would likely bury careers.

    What do we measure?

    My friend Rob Blackie started some of the thinking on effectiveness data SLA tiers

    A = Tests the objective directly using a Randomised Control Test (RCT) in a real world environment (e.g. measured at point of sale).
    B = RCT tests of proximate objective (e.g. brand), direct measurement of impacts without correction for population bias or confounding factors (e.g. a sunny week drives a lot of ice cream consumption). Or case studies (independent), quality survey data on changes in behaviour, testing in an artificial environment. For instance a Nielsen Brand Lift study
    C = Case studies (non-independent), data sources that may contain significant bias compared to the underlying population. For instance: Award entries.
    D = Indicative data such as PR coverage, social media Likes and similar.
    E = Anecdotes. Extra points for quality, and reproducibility across different suppliers / evaluators.

    There are challenges capturing long-term branding factors such as advertising ‘ad stock’ or ‘carryover‘. That then takes you into fundemental questions:

    How long is the minimum viable time of campaign duration to be considered for assessment?

    How long should we be measuring long term branding effects? How do you measure ‘clientside’ quality issues:

    • Resourcing / budgets
    • Product
    • Ambience in the case of client-owned channels
    • Adequate quality briefs. Are the objectives written well? Are they relevant to the business
    • Mission creep or changing company agendas

    All of this means that getting to the greater volume of poor campaigns as well as the best is easier said than done. The best way to kick it off would be having large agencies to work together on putting together data sets.