Category: media | 媒體 | 미디어 | メディア

It makes sense to start this category with warning. Marshall McLuhan was most famous for his insight – The medium is the message: it isn’t just the content of a media which matters, but the medium itself which most meaningfully changes the ways humans operate.

But McLuhan wasn’t an advocate of it, he saw dangers beneath the surface as this quote from his participation in the 1976 Canadian Forum shows.

“The violence that all electric media inflict in their users is that they are instantly invaded and deprived of their physical bodies and are merged in a network of extensions of their own nervous systems. As if this were not sufficient violence or invasion of individual rights, the elimination of the physical bodies of the electric media users also deprives them of the means of relating the program experience of their private, individual selves, even as instant involvement suppresses private identity. The loss of individual and personal meaning via the electronic media ensures a corresponding and reciprocal violence from those so deprived of their identities; for violence, whether spiritual or physical, is a quest for identity and the meaningful. The less identity, the more violence.”

McLuhan was concerned with the mass media, in particular the effect of television on society. Yet the content is atemporal. I am sure the warning would have fitted in with rock and roll singles during the 1950s or social media platforms today.

I am concerned not only changes in platforms and consumer behaviour but the interaction of those platforms with societal structures.

  • End of culture

    This post on the end of culture as inspired by a presentation. Pip Bingemann of Springboards.ai presented at Cannes in Cairns – a marketing festival for Australians who wouldn’t be able to go to the Cannes Festival of Advertising. Pip’s presentation touched with things I had seen about the end of culture and had some interesting points within it. I didn’t agree with a lot of Pip said, some of it was down to nuance, but appreciated the journey that it took.

    I have built the main headers around Pip’s slides, strap in for the end of culture.

    What’s wrong with advertising?

    Bingemann’s presentation as in praise of the disruption that (generative) AI was bringing. The thesis he put forward was that ‘machines’ had already messed up the advertising and media industries. 

    • Advertising became self-service in nature. 
    • There had been a move in online media to relevance over distinctiveness
    • We became slaves to numbers

    Let’s look at those elements first. 

    Advertising became self-service in nature

    Like the technological disruption of banking in the past with: 

    • Postal banking
    • Automatic teller machines
    • Telephone banking 
    • Online banking 

    Meta and Google’s advertising platform democratised media buying. Years ago a guy I have lost touch with used to be a manager at a McDonald’s branch in the west end of London. 

    Before cellphones became commonplace he had a side hustle. He used the restaurant telephone to phone up the newspapers, to book small ads. The newspapers had advertising sales teams, that he would speak to. He did it once for a friend and then word got around. Eventually, he was calling for businesses across Soho. Premium line suppliers, porn publishers and adult mail order catalogue companies. Eventually they needed the ads to be designed. This work was done alongside creating porn DVD covers and other marketing material. 

    Ovid was a pimp

    He built a small successful agency off the back of it based in Soho. The agency remained in Soho until it was priced out by the fund management firms who moved in. Lots of other small businesses did the same for their plumbing business or hair salon. Their adverts would run in local newspapers across the country. 

    newspaper ad...

    For more sophisticated ads like large print ads, television or cinema advertising; help was needed. This help got the ad ready, made sure that the publication received the artwork on time and in a format that they could use. They made sure that the artwork was presented in the manner agreed. With the likes of television, the advert might have to go through regulatory approval prior to publication. 

    If you were a larger brand with a national or international campaign, further help was needed in pre-testing and orchestration. Expertise might be needed to access more regulated markets while remaining on the right side of the law. 

    Technology allowed newspaper type adverts to be easily accessed by both agencies and brands. 

    TLDR: Advertising has been self-serving for decades, but I will grant that online allowed more sophisticated formats such as videos, colour photos and carousels. AND regulation has been slower to police advertising online, for instance YouTube ads don’t get the scrutiny that TV ads get.

    Relevance over distinctiveness and slaves to numbers

    The move to relevance over distinctiveness in online media was down to where online media was in the customer journey. It was (and for the most part still is at the bottom of the funnel).

    Relevance made sense, particularly in search advertising. The first online adverts such as Craigslist classified and display ads were conceptually similar to their equivalents in the back pages of newspaper advertising. Newspaper ads were served in sections: cars for sale, homes for sale, local businesses, cinema listings, vets or pharmacies with a late closing time.

    Search and many banner ad campaigns for that matter are about the last step (hopefully) before purchase. In the old pre-internet world, they would be direct mail or the direct response adverts that used to appear in magazines or the special offers beloved of shopper marketing.

    Vintage 1960s Columbia Record Club Ad Double Page Advertisement 1962

    Distinctiveness appeared further up in the funnel building long term memory models through brand building. It was TV advertising, radio jingles, magazine print advertising and billboards that evoked emotion and still evoke nostalgia decades later.

    Silk Cut cigarette ad
    Saatchi & Saatchi for Gallaher

    I would argue that the issue is less about relevance at the expense of distinctiveness, instead it’s about short-termist mindsets facilitated by numbers. The media industry is about to double down on this error, with initiatives like the European Programmatic TV initiative. And so I can empathise with Pip’s last point about becoming slaves to numbers. It’s ironic that the PowerPoint-friendly charts used by Google search advertising to explaining its value for marketers took off and drove marketing thinking.

    Technology marketing itself came from broken origins and still is basically sales strategies by another name. A good deal of what data is created is based on what technology companies can see; rather than what marketers need to measure to get the balance between long term and short term marketing needs.

    This MIGHT BE about to change if marketing expert Mark Ritson is to be believed. He posits that marketing technology start-up Evidenza.AI will provide business-to-business marketers with the kind of insight previously driven by market research, but much faster. From then on he sees it doing a better job at communications and media strategy. I am trying to keep an open mind on this at the moment.

    TLDR: Advertising hasn’t become about relevance at the expense of distinctiveness, but instead about short-term at the expense of long-term marketing effects; partly down to technologists having a poor understanding of marketing.

    Technology outputs data which marketers paid an inordinate amount of attention to; reinforcing the short term bias. Machine learning techniques now becoming available might turn this around by providing better marketing insight.

    Machine learning tends towards the mean

    Pip’s presentation went on asserting that machine learning tends towards the mean. Generative AI synthesises content based on what has already been done, which why Pip assumes that everything tends towards the mean. But that depends on how one uses these tools that we’ve been given.

    As a strategist, I have used generative AI to knock out too obvious propositions, so I give the creative teams something interesting to work with in the creation of distinctive assets.

    Apparently creative teams have been taking a similar approach in terms of ideation.

    One thing I’ve heard more than once recently is how creative teams are using LLMs for brainstorms. But not quite how you’d expect… Because these algorithms answer back with the most likely predicted outcomes based on available data, you get the mean. The average. In creative terms that means the well worn “cliches”. So when starting a brainstorm or ideation session, quizzing the LLMs leads to a list of suggestions of what creative teams are generally most likely to suggest. At which point the team knows what NOT to do. The already well trodden ground. The list of the obvious. That also somehow gives a wonderfully smug angle on the use of AI in the pursuit of original work.

    Nic Roope on LinkedIn

    TLDR: generative AI will tend towards the mean, BUT that can be used creatively.

    Agencies and clients screwed advertising

    Pip’s slides don’t necessarily dig into the reasons why this happened. But I can put together some hypotheses and provide evidence that may indicate their validity or lack of it.

    Clientside factors

    • Shareholder value ethos – Shareholder value the way we understand it now can be traced back to the 1960s. While Milton Friedman popularised it in an essay A Friedman Doctrine: The Social Responsibility of Business Is to Increase Its Profits, the idea had surfaced years earlier in an opinion editorial published in Fortune magazine. The so-called Friedman doctrine became a lode star for investors and boards including the likes of ‘Neutron’ Jack Welch at General Electric. While this thinking still dominates the tyranny of the quarterly numbers that CEOs of publicly traded companies operate under; it is not the only perspective in the c-suite.
    • The financialisation of businesses – related to the Friedman doctrine, businesses became increasingly financialised thinking about short term financial decisions. A classic example of this is how post-regulation, legacy airlines in the US have been managed. Another example is Brazil’s private equity firm 3G Capital who managed to destroy billions of dollars in shareholder value with marketing cuts. Financialisation has definitely had an impact, but it varies from company to company. We also see it showing up on the agency side, with the move to using more freelance staff and burning out those staff that they do have. They have a fig leaf of mental health care in their talent acquisition literature, but it’s largely BS.
    • What gets measured gets done – Google advertising’s success was as much down to it being easy to tell a story about the marketing spend conducted on the platform as it was about effectiveness. The dashboards lended themselves to being easily reproduced in PowerPoint and spoke in the universal c-suite language of line graphs and pie charts. This was really important for Google to survive and thrive in the post dot com bust and the 2008 recession.
    • Marketing literacy – since before I have gone to college the c-suite was largely marketing illiterate. It doesn’t matter if they are a self-starting boy or girl made good, or minted from an Ivy League business school with an MBA. I have worked with both and they had a similar marketing knowledge level, the only thing that varied was the level of self confidence despite this gap. Neither do the management consultants that they may employ. Which is the reason why the team at 3G Capital were surprised when they cut marketing costs and destroyed brand and shareholder value.
    • Procurement – practices to systemise purchasing and avoid issues like nepotism and corruption have introduced a muscular procurement function who know the price of everything and the value of nothing. Margins across disciplines have been squeezed to breaking point. This has led to a decline in entertainment and side benefits, my LinkedIn feed had advertising folk explaining that the cost of attending the Cannes Festival of Advertising was likely paid through budget cuts in: training, subscriptions for tools and publications and even head count. We might not have had an end of culture, but this is no longer the industry portrayed in Mad Men.

    Agencyside factors

    • Splitting creative and media – prior to the mid-1970s creative and media buying were two departments in the one advertising agency. That allowed the free flow of research between the departments and the creative use of context as well as content. It also meant that margins had to support two management teams. Secondly, the options to best defend margins was in the media-buying side of the house, depending on how integrated into the media technology stack the the media buying agency became.
    • Change in north star from FMCG to technology companies – the rise of the internet completely changed the nature of marketing. Prior to the internet becoming mainstream, having FMCG experience as a marketer helped your career. In the early 2000s, Google, Yahoo! and later Facebook became the brands marketers wanted on your CV. The difference was that FMCG brands had subscriptions to the likes of the Ehrensberg-Bass Institute for Marketing Science. Yet American and British academia saw that most thinking from even the most prestigious schools can be boiled down to being the considered common sense opinion of tenured professors like David A. Aaker and Philip Kotler. Kotler was reportedly not interested in engaging with marketing science as consumer behaviour was too complex and difficult to model.
    • Relative recent awareness of marketing science. For reasons that I don’t fully understand marketing science is both old and a new phenomenon. The late Andrew Ehrensberg originally founded his Centre for Research in Marketing in the early 1990s and had been turning out marketing science academic papers for decades before that. Ehrensberg eventually moved to His work on the myth of ‘heavy consumers‘ and polygamous brand buying (smaller brands suffering a double jeopardy of fewer people purchasing them, and those that did purchase them, did so less often) was done back in the 1950s for Attwood Consumer Panel (would eventually become part of TNS). Some agency strategists knew about Ehrenberg, such as Stephen King of JWT. Some of this thinking was likely hidden by the decline of market research projects in agencies and the split between media buying and creative. In addition, Andrew Ehrenberg theorised why marketing science had a low adoption outside his center’s FMCG clients, which also encapsulated the gatekeeper role American academics played in overall mainstream academic adoption:

    I also realised slowly that our kind of theorising – which at base describes and explains already-established and generalised empirical discoveries and which thus post-dicts them – was anathema to many American academic marketing colleagues. They espoused much more ambitious and complex-looking econometric procedures which never worked in practice, with the recent citation for a Nobel typically not referring to any established empirical patterns

    My Research in Marketing : How It Happened by Andrew Ehrenberg
    • Channels – I don’t know who thought that a video view could be just a couple of seconds, but digital platforms benefited from it. Some of the wisdom from this years Cannes Festival of Creativity was that short adverts don’t work that well as they fail to build memory structures. Somehow agencies, platforms and brands suspended belief to develop marketing campaigns that only made sense in 1980s cyberpunk fiction like Max Headroom. Even at Cannes, platforms like Tiktok believed that they operate like, and a have similar impact to a TV advert…
    • Research – like most strategists I have found that I am often operating with less qualitative research than I would like. One of the biggest programmes I managed to work on the research for was the global launch of a now famous weight management product. Even then we didn’t do enough interviews around the world to understand cultural nuances in play. I remember reading about strategists in the 1970s spending a good deal of time listening to focus groups hosted around the country. There was a mid-week ritual of taking a drive or a train to a city or town outside London for this research. Social listening has been touted as a possible research for product tracking and can be a useful source of consumer soundbites sometimes.
    • Testing – hand-in-hand with a decline in research has been a decline in types of testing. Content still gets tested, but brands and agencies didn’t test channels to the same degree. Which is why we’ve had short form ad formats for years, yet the knowledge that they’re not as good at building memory structures doesn’t seem to be embedding into clients and agency teams.

    OK, but that’s advertising, what about the end of culture?

    Pip claims that advertising is just one part of our world that has been under attack (from technology). Alex Murrell’s essay The Age of Average was cited as the source of this insight. Murrell makes his case on the common looks in car designs driven by developments in aerodynammic design over time, architecture and cityscapes, coffee shop styles, logos, book covers, video game franchises, packaging design and product design.

    Part of the reason for the architecture was Le Corbusier and his his function over form theory of design and architecture (modernism) captured in Towards a New Architecture.

    Murrell harked back to a time of distinctive cities like Victorian London. However what Murrell’s explanation overlooked was that even back in Victorian times London was becoming ‘standardised’. Chimney pots, bricks, cast-iron beams, windows and even church stained glass windows came out of catalogues. The same designs repeat over-and-over-again. The church stained glass windows went around what was then the British empire. It is a similar situation today. Buildings are made of standardised materials and design tools as we understand more about engineering.

    Technology over time allowed buildings to get taller and let in more light thanks to improvements in construction, lifts (elevators) and environmental control. Where things get interesting is when governments and societies make decisions on what they want to keep or rebuild. Shanghai has preserved only a little of the Bund and few of its hutongs. Hong Kong has so far managed to keep some examples of its composite buildings. However once you get to street level you see a distinct evolving local culture despite their apparently similar skylines.

    This mix of standardised components bought from a supply chain, improved engineering and regulation has also driven similarities in other products, such as motor cars which Murrell cited as an example. But again those similarities are more about operating at a macro-viewpoint. On closer examination, diversity in car culture and driving experiences start to build clear lines of distinctiveness.

    And the car industry for decades has indulged in badge engineering where one vehicle truly does look like another.

    Wolsley Hornet
    Wolesley Hornet
    PBWA Hammersmith and Fulham
    Austin Cooper Mini
    1975 Innocenti Mini 1300
    Innocenti Mini
    1967 Riley Elf
    Riley Elf

    The examples I used above were all based on the Austin Mini. Wolesley was a luxury brand owned by BMC at the time. Italian care manufacturer Innocenti licensed the Mini from Austin until the agreement was cancelled by British Leyland. Lastly, the Riley Elf was a slightly more expensive alternative to Wolesley, both were owned by BMC.

    General Motors were the masters of badge engineering using ‘common platforms’ as far back at 1909.

    As for the complaints about logo design, books and later the web allowed influential design motifs like Neville Brody’s work at The Face, Arena and The Guardian went around the world, collected in three volumes by Thames & Hudson. His cover designs were in Tower Records stores from New York to Tokyo. Design is an industry sensitive to global influences that you see spread around the world. A second reason for the simplification and flattening of logos is the world that we now live in. Before the web logos only existed in the physical world. Digital brings common requirements:

    • Works in a website template that can be used globally.
    • Works in email headers and footers.
    • Works in a favicon and in a mobile app button.

    One interesting point came out when Murrell (and Bingemann) looked at media where there was a coalescence of homage images and content based around a success. But these in turn created their own genres like the sweary covers on self-help books. How is this marking a low point in culture was beyond me.

    I thought of genres like the European ‘gallo’ films or the European takes on the western films of which spaghetti westerns are the most well known. A lot of the films were dreadful. In the case of European westerns many of them borrowed a characters name from more successful films. So you saw ‘apparent’ franchises around ‘Ringo’, ‘Django’ and ‘Sartana’.

    Western saloon, cinema studio tabernas (Almeria)

    (Film director Alex Cox published one of the best works on the Italian western film genre 10,000 ways to die. It’s based on his university thesis and a fascinating read, if you choose to jump down that rabbit hole.)

    You had a similar experience in the Asian martial arts film industry with countless variations on the the star name Bruce Lee, as the industry coped with the loss of most famous star.

    To quote Sturgeon’s revelation:

    90 percent of anything is crap.

    This doesn’t mark the end of culture, but the manufacture of culture. What’s good or great is then strained through the filter of time and changing social attitudes.

    As for the cinematic superhero cul-de-sac, there are clear parallels with the end of the western and the New Hollywood movement. This time its distribution in the driving seat rather than a new generation of directors. Like the New Hollywood movement there will be both successes and car crashes along the way and I am largely excited by it.

    Bingemann also cites Adam Mastroianni’s essay Pop Culture Has Become an Oligopoly. Mastroianni hits on what is called a long tail. In scale-free networks with preferential attachments, power law distributions are created, because some nodes are more connected than others – so Taylor Swift will sell more because of the size of fan base she has grown over time. They have been studied since at least 1946 and Benoit Mandelbrot who is better known for his work on fractals was one of the main researchers. Wired magazine touched on it in 1998 when it published The Encyclopaedia of the New Economy written by John Browning and Spencer Reiss and the influence showed up in Wired contributor Kevin Kelly’s work New Rules for the New Economy. So one can guess that the ideas were being thrown around then.

    Wired editor Chris Anderson wrote about it in a magazine article for Wired in October 2004, and turned it into a book. Algorithms in online services create bubbles and rabbit holes in different areas and surface media winners like MrBeast. But again culture has thrived despite of popular culture out of sight of the general public for decades will continue to do so. Examples include Northern Soul, punk, the Chicago house music scene, UK garage, grime, drill and donk, the long tail does not mark an end of culture.

    TL:DR: Could the current culture eco-system be better? Yes, absolutely. But it isn’t broken in the way and extent that Bingemann believes. We definitely aren’t at the end of culture and it doesn’t need to be ‘saved’ by generative AI.

    So what can AI do?

    Bingemann believed that generative AI offers society a way out of the end of culture. So presumably it offers a way to enhance and create culture. He believes that it creates, I would finesse this a bit to say that it emulates, synthesises and combines elements to meet consumer instructions – since it is the sum of its training data.

    Ironically, Bingemann bases his thesis on how surreal and abstract art represented the ‘death of traditional art’ and reinvented the meaning of art and unleashed a large amount of creativity. Traditional art didn’t die per se, there are still several artists selling realistic pieces including painting and sculptures alongside the ‘new art’ movements.

    Generative AI puts tools in the hands of creatives that previously would have meant a lot of work. In the same way that desktop publishing and Photoshop reduced the cut-and-past compositing on layers of glass panels which were then photographed and image retouching done by hand in the past.

    In advertising Bingemann sees five opportunities enabled by generative AI:

    • Move to value-based pricing (presumably based on substantially reduced cost of production). It’s what Huge tried to do with their pivot and what thinkers like Michael Farmer have been recommended. We’ll see what happens when this aspiration meets client procurement teams. I hope Bingemann is right.
    • Design AI around people. So far the progress has been mixed around this. We have been some companies like Klarna using ‘good enough’ generative AI to automate jobs out of existence. Adobe have taken more of a creative enablement approach. Based on my experience working on ads in the past with collaged backdrops and photoshoots for global campaigns, this could save tens of hours or more in art working.
    • Embrace the newcomers. Just like social and digital before it, when we had new agencies like Crayon, AKQA and Poke; Bingemann thinks that generative AI is likely to bring new businesses to the advertising eco-system.
    • Spend 10x more effort developing the next generation. Given that the advertising industry manages to continually churn experienced people out of the industry and no one was found to have retired last year from the industry according to the IPA – this is going to be a tall order. It would make more sense if AI was used to make advertising more representative.
    • Unite. Clients, agencies and technology. It’s a nice aspiration, but when clients are looking for good enough and efficient content, agencies looking for a margin and trying to put effectiveness in there as well and technology companies trying hold back their natural instinct to suck all the value to themselves, it will be a hard feat to achieve.

    Bingemann argues that this is necessary for advertising, but also for creativity and considers advertising’s role to break culture rather than just reflect it. Culture and creativity will exist without advertising. Even during the Soviet Union, there was still creativity, art and culture – both mainstream and underground.

    A Final Thought To Leave You On

    GZero Media quoting Douglas Rushkoff (of Media Virus fame) on what generative AI means for culture moving forward.

    While its not the end of culture as we know it, Springboard.ai are putting out some interesting tools that I could see competing with the likes of Julian Cole, Mark Pollard and others who are filling the ‘how to strategy’ gap for brand planners.

    More related content can be found here.

    More information

    The ‘Pernicious Nonsense’ Of Maximizing Shareholder Value | Forbes.

    Customer Value, Shareholder Wealth, Community Wellbeing: A Roadmap for Companies and Investors by Denis Kilroy and Marvin Schneider

    CIA appoints ex-MindShare chief de Pear | MarketingWeek

    Vici – The evolution of display advertising

    Profit squeeze for ad agencies | MarketingWeek

    3G Capital discovers the limits of cost-cutting and debt | The Economist

    My Research in Marketing : How It Happened by Andrew Ehrenberg

    Creative Impact Unpacked: 11 effectiveness trends from Cannes Lions 2024 | WARC

    The Age of Average by Alex Murrell

    Modern Man: The Life of Le Corbusier, Architect of Tomorrow by Anthony Flint.

    10,000 ways to die by Alex Cox.

    The New Hollywood: From Bonnie and Clyde to Star Wars by Peter Kramer.

    Pop Culture Has Become an Oligopoly | Experimental History.

    New Rules for the New Economy by Kevin Kelly.

    The Long Tail: How Endless Choice is Creating Unlimited Demand by Chris Anderson.

    AI and creativity | renaissance chambara.

  • Warped media constructs

    Where did warped media constructs come from?

    Warped media constructs as an idea originated from a few observations I made. The first was an article by Magic Numbers that examined the distribution of marketing spend across various media channels compared to the percentage of profit they generate. It was based on a piece of research done called Profit Ability 2.

    A chart in the article caught my attention. While all channels contribute to profit, some have more comprehensive long-term effects than others. Any channel below (or to the right of) the red line represents a greater proportion of contribution to overall profit returns than the proportion of the marketing budget allocated to it.

    profit ability 2

    Based on this chart: linear television, radio and podcasts and print advertising offer the best value for money for businesses.

    What’s interesting is that two out of three of these channels are viewed as legacy media that brands are keen to move away from. When I worked at Unilever, the global media spend for the brands I managed amounted to about 92 per cent on television advertising. Some markets allocated even higher percentages.

    The second influence for this post on warped media constructs was a post by Tom Goodwin.

    Goodwin spent the best part of a decade working in senior roles for media buying businesses in very technology-centred roles.

    It’s only just dawned on me that the reason Traditional Advertising is quite good and Digital ads are uniformly terrible is this.

    Media owners always knew they were in the business of selling eyeballs.

    Digital media companies think they are in the business of selling clicks.

    Our core competence becomes how we see the world.

    If you were a traditional media owner , your “job” was to attract , to respect , to inform, to tantalize, to satiate attention and repeat business

    If you were a digital media owner, you were a tech company using algorithms to trick, harass, optimize, chase , game, attention by trying out any one of Billions of bits of content , made for free by users.

    So while TV companies and traditional media owners are selling attention and eyeballs.

    Digital media companies are selling clicks and data that show they create success.

    The philosophy of traditional media is actually far more useful for longer term business success with advertising

    For MOST companies of any scale, taste and longevity, digital media thinking is entirely wrong

    But tech thinking swayed the market , they became so dominant and valuable, and profitable, nobody has the balls to call out how dumb this actually is and how much it’s degraded advertising.

    I just wish we could apply the thinking of traditional media , the need to respect , to seduce , to value , to reward human attention , to digital media , because that’s where most people spend ALL of their time.

    Tom Goodwin on LinkedIn

    His post made me wonder about why such warped media constructs were widespread, when the flaws of lower performing media were readily apparent?

    What does the data tell us about media?

    The Profit Ability 2 research is a robust study of the UK media market. It took data from five media buying agencies looking at 141 brands in 14 sectors. it was based on a three-year media spend (2021-2023) and across ten media channels. Over a third of the brands matched pre-and-post COVID.

    Retail media is one area that I would have liked to see examined in a bit more depth, given its rising popularity and ability to challenge generic PPC and online display advertising.

    Media that is often the most lionised and championed by media agencies, notably paid social and programmatic display media were outshone by media types that have been declining investment by marketing teams over the past two decades.

    This isn’t a new phenomenon as Ebquity research back in 2018, showed that there was a considerable gap between what marketers and agencies thought were effective, versus real-world evidence.

    perception vs reality

    Secondly, this data indicates that brands are not using the channels in the best way for the long term interests of their business. There is also a correlation with declining campaign effectiveness rates.

    Why do we have warped media constructs?

    This pivot towards warped media constructs has benefited everyone but advertising agencies. And it would be reasonable to hypothesise that agencies chasing incremental growth, enterprise software vendors and consultancies have been leading large corporates up a digital focused route that provides data and efficiency at the expense of effectiveness and marketing ROI.

    Agencies’ legacy businesses are fading as the vast majority of
    incremental marketing spend is directed online. Digital growth is
    accruing to leading publishers, enterprise software and consultancy
    firms, while technology enables marketers to do more in-house.
    Market share loss is already evident in slower organic growth, but
    trading multiples fail to recognise the heavy dependence on M&A.
    Fragmentation. Almost 80% of every incremental advertising dollar spent globally accrues to digital. As their legacy traditional media businesses are fading, agencies are failing to capture digital growth, resulting in a lower market concentration in favour of new entrants empowered by technology

    Redburn Atlantic (equity research paper): Ad Agencies Marginalised (2016) by Bianca Dallal, Matt Coupland and Mandeep Singh.

    Advertising industry commentator Michael Farmer alluded to this change in his newsletter Madison Avenue Insights back in 2020.

    Creative agencies have mastered the requirements of integrated campaigns, from TV to online video, websites, Facebook, Instagram, ad banners and e-mail marketing. It’s a pity, then, that this victory is being undermined by agency price-cutting strategies that leave agencies understaffed and underpaid. Senior agency executives need to create winning business practices – they’re losing the business war.

    Madison Avenue Insights | Creative agencies: winning the battle but losing the war

    Platforms like Facebook have repeatedly tried to prove that they can substitute for linear TV in advertising campaigns since the late 2000s with varying degrees of success.

    The Devil is in the details.

    Remember the question about what the data tells us about media? Let’s examine the data in more detail.

    One of the key phrases on the slide plotting out the different media sources is ‘full profit returns’. This term is quite important to bear in mind. Consider how these media channels work.

    Long-term memory model or brand-building channels

    • Linear television adverts
    • BVoD (Broadcaster Video on Demand)
    • Radio and podcasts
    • Cinema
    • Online video
    • Print advertising

    Good brand building content that we are sufficiently exposed to can stay with us for decades and even become part of culture.

    Short-term brand activating channels

    • Generic PPC (Pay-Per-Click)
    • Paid social
    • Display advertising

    This means that once you have clicked on the ad and gone to a destination, the advertisement has largely had its effect.

    The Long and the Short of it

    Now if we look at the performance of these media types over full payback, sustained payback and immediate payback we see that each these media channels serve short-term or longer-term goals. Time matters, Profit Ability 2 found that 58 percent of advertising’s total profit generation happens after the first 13 weeks.

    If you are a digital-first organisation, or looking at ‘last-touch’ attribution, your measurement is capturing less than 40 percent of profit generated by advertising depending on the marketing mix of the campaign. Your organisation’s marketing culture could be leaving substantial marketing generated profits unharvested with an overly short term focus and less efficient over longer timelines than a financial quarter.

    Binet and Field established some useful heuristics for thinking about marketing spend, which can help shape media choices from a macro perspective of brand-building and brand-activating activities.

    full sustained immediate
    • Immediate payback – profit derived in the same week as the advertising.
    • Sustained payback – profit derived from week 14 to 2 years of advertising.
    • Full payback – profit derived over the full 2 year period.

    Anything above the yellow line makes a positive contribution relative to the proportion of marketing investment. Linear television works when used consistently and has a long-term impact.

    Paid social media is about achieving immediate results, being a very tactical channel by nature.

    Print advertising is unique in serving equally well across immediate goals, sustained campaigns, and delivering long-term results.

    Each media channel can play its role based on the communication objectives. Their effectiveness also depends on how they work together.

    A second consideration is the channel’s reach in the population. Print is interesting as a universal channel for consumers who read print publications, from older Telegraph readers to Monocle magazine-toting hipsters. However, it’s less useful if you’re looking to reach a football-mad teenager. Ebiquity in its analysis of Profit Ability 2 talks about a related concept called saturation:

    The study analysed the saturation point for each channel, which is the last point where every pound invested in a channel generates at least £1 profit.

    It found that TV has the highest saturation point. Advertisers can increase investment in TV to a higher level than other media and it will continue to generate a profitable return.

    Based on immediate payback (i.e. payback within one week of investment), Linear TV advertising on average hits saturation at the highest spend level – £330,000 – nearly triple the equivalent scale of the next largest channel (Print) and over 8-times the scale of Online Video.

    Profit Ability 2: The new business case for advertising | Ebiquity

    Reflecting on my experience at Unilever: I wasn’t brought in to help digitise the marketing mix away from television because digital was an ineffective channel, but because linear television wasn’t as good a platform for reaching busy young mums as it had been previously. We had to broaden the media mix to reach them, which meant more investment in online video and paid social media.
    In retrospect, we focused on reach, deprioritising consideration of the communication objectives. BVoD, radio, and podcasts might have had greater weighting if I were to do it again.

    This might all change

    If a channel became more expensive, you would get less value for your money; it would be equivalent to raising the yellow line. Conversely, reducing the cost of the media would be equivalent to lowering the yellow line.

    Cost inflation

    Price inflation for larger clients likely endangers cinema, display advertising, online video and BVoD in client budgets first. There may be a strong case at present to allocate more spend to channels that would encourage branded searches, to improve the effectiveness of a reduced PPC spend. Examples of these channels would include public relations, print advertising and television.

    Job to be done / payback period
    SOTD: Eau Sauvage

    An emergency locksmith will have a very different budget and timeline for marketing return compared to an aftershave brand. The emergency locksmith wants to rank top in local search on mobile devices to get a call-out; they are far less likely to consider brand building and word-of-mouth. The exception to this rule would be at the top of the market, like Banham in central London, which would be providing more of a concierge security service.

    Regulation

    I have worked with pharmaceutical clients where most of the communications we were doing had to be addressed directly to healthcare professionals. In that case, you have a much more limited palette of possible communication channels.

    Silk Cut cigarette ad

    You face a similar situation if you are looking to market regulated consumer products like sports betting, gambling, alcohol, cannabis and tobacco-related products or vapes. The channel limitations are based on screening off protected audiences or reducing the chance of positive brand attributions. Regulators don’t want smoking to appear cool.

    The Cholmondeley Pageant of Power 2009

    So what’s the best media channel based on our warped media constructs?

    It depends. The good news is that all advertising channels analysed in Profit Ability 2 generated a positive payback from advertising when sustained effects are accounted for.

    You can find similar posts here.

    More information

    How Brands Grow: What Marketers Don’t Know by Byron Sharp.

    Madison Avenue Insights | Creative agencies: winning the battle but losing the war

    Profit Ability 2: Thinkbox report, Ebiquity write up, The new business case for advertising presentation.

    What the latest effectiveness stats reveal about moneyball media choice | Magic Numbers.

    The Long and the Short of it: Balancing Short and Long-Term Marketing Strategies by Les Binet and Peter Field.

    Ebquity | Intel (2018). Re-evaluating Media: What the evidence reveals about the true worth of media for brand advertisers. United Kingdom: RADIOCENTRE. (PDF).

    Facebook is a lower quality medium than TV, says marketing academic – Brand Republic News

    TubeMogul Partners With Facebook to Help Brands Extend TV Audience Reach to Digital | Adweek

    Do TV Ads Drive Facebook, Twitter Engagement? (Study) | AdWeek

    Mediatel: Newsline: Starcom: TV is now twice the price… but not twice as good -“There’s still nothing better than [a 30 second ad],” Dan Plant said on a panel at Future of TV Advertising Global. “Unfortunately it costs twice as much now – and it hasn’t got twice as good at what it was doing. You pay twice as much to achieve the same thing.”

    Facebook suffers setback in quest to topple TV ad dominance | Digital – Ad Age – couldn’t get sufficiently high rates on ads that it was showing on connected TV devices.

    Facebook and Google, Two Giants in Digital Ads, Seek More – The New York Times – Facebook combining Nielsen TV data, treating its ads like TV. and Google plays catch-up with targeting by email address.

    What’s behind P&G’s cutback on targeted Facebook ads? | EJ Insight (Hong Kong Economic Journal) – To reach 5,000 targeted viewers on Facebook, the spending needed can reach the equivalent of that required to reach a million TV viewers, according to Peter Daboll, chief executive of Ace Metrix, which tests ads for effectiveness

    Thinkbox Media Mix Navigator.

  • IT director powers up + more stuff

    The IT director is seeing a return to power and its thanks to the power of hackers and AI. The smartphone, the resurgence of Apple and SaaS saw IT decisions become more organic thanks to increased access to online services that provided better features than traditional enterprise software companies and the rise of knowledge working. IT teams found management of mobile devices onerous and faced hostile users.

    TSB -  8th Chief Technology Officers (CTO) Meeting
    Michiko Fukahori of the Japanese National Institute of Information and Communications Technology at ITU TSB – 8th Chief Technology Officers (CTO) Meeting

    This meant that the IT director became less important in software marketing. A decade ago marketing had pivoted to a bottom up approach of ‘land and expand’. This drove the sales of Slack, Monday.com and MongoDB.

    Two things impacted this bottom up approach to enterprise innovation:

    • Cybercrime: ransomware and supply chain attacks. Both are not new, ransomware can be traced back to 1989, with malware known as the AIDS trojan (this had much cultural resonance back then as a name). Supply chain attacks started happening in the 2010s with the Target data breach and by 2011, US politicians were considering it a security issue. Over COVID with the rise of remote working, the attacks increased. The risk put the IT director back in the firing line.
    • AI governance: generative AI systems learn from their training models and from user inputs, this led to a wide range of concerns from company intellectual property leaving via the AI system, or AI outputs based on intellectual property theft.

    The most immediate impact of this is that the IT director is becoming a prized target on more technology marketers agendas again. This takes IT director focused marketing from back in the 1980s and the early 2000s with a top-down c-suite focus including the IT director. This implies that established brands like Microsoft and IBM will do better than buzzier startups. It also means I am less likely to see adverts for Monday.com in my YouTube feed over time.

    This doesn’t mean that the IT director won’t be disrupted in other parts of his role as machine learning facilitates process automation in ways that are continuing to evolve.

    Target data breach: Why UK business needs to pay attention | Computer Weekly

    Supply chain security – DHS finds imported software and hardware contain attack tools | Inquisitr

    Software is not dead | Kevin Xu

    The bizarre story of the inventor of ransomware | CNN Business

    Silicon Valley steps up staff screening over Chinese espionage threat

    Business

    The whole supply chain is subsidised’: inside the EU’s blockbuster Chinese EV probe | South China Morning Post

    Brands plan for a quiet Pride Month | News | Campaign AsiaThe hesitation around Pride may also be related to executives’ increasing reluctance to speak out on social issues more broadly. Wolff pointed to Edelman’s Trust Barometer, which found that 87% of executives think taking a public stance on a social issue is riskier than staying silent. “Essentially, nine out of every 10 executives believe that the return on investment for their careers is not worth the support during this turbulent time,” said (Kate) Wolff. “This is clearly problematic for both the community and the progress we have made in recent years.”

    Apple, Microsoft, SpaceX talent jumped ship after return-to-office mandates, study reveals | Fortune

    China

    The whole supply chain is subsidised’: inside the EU’s blockbuster Chinese EV probe | South China Morning Post

    Resignation Bordering on Despair – by Stephen Roach – economics of China and Hong Kong – more here: An Audacious Wake-Up Call – by Stephen Roach. Roache was the head of Morgan Stanley Asia.

    China’s Global Ambitions – Part 1: A Violent Thrust Into Modernity – Preston Stewart – quite a nice China primer.

    Consumer behaviour

    Brands have misjudged the politics of youth | WARC – STRAT7 Research on how woke has become a negative terms for some as the term takes on ambiguity and polarity in societal discussions.

    Why Companies Should Add Class to Their Diversity Discussions | HBR

    What triggers brand boycotts? | WARC | The Feed – interesting research, but I would like to have seen China and South Korea in this due to the interest boycott behaviours that happen.

    People Like Harrison Butker Are Taking Over Catholicism | The New Republic – looks like the evangelical catholics

    An uneven commute | Mastercard Services

    The death (again) of the internet as we know it | Noah Smith

    THE SILVER CULTURE PROJECT – interesting project by BBH London though the age bias in marketing and adland is strong

    Culture

    Rebecca F Kuang: ‘I like to write to my friends in the style of Joan Didion’ | The Guardian

    Design

    Pedestrians Aren’t Hearing EVs on the Road | Extremetech – engine sounds in EVs would be a solution. Imagine if your EV could sound like the dignified rumble of a 1980s vintage Mercedes 560 SEL?

    Nokia’s Classic 3210 Returns With Modern 25th-Anniversary Upgrades – DesignTAXI.com

    IKEA hosts flea markets at European stores to ‘keep good things going’ | Trendwatching – its a pity that most Ikea products are now built for margin rather than quality.

    Emoji history: the missing years  ⌘I  Get Info

    Making the Band: An Oral History of the Livestrong Bracelet | Texas Monthly – history of the early 2000s social object

    Economics

    The Foundation of American Folly – by N.S. Lyons

    Finance

    StanChart’s Iran transactions subject of fresh whistleblower claims | FT

    Chinese underground banks shaking up money laundering.

    FMCG

    CosMc’s: Brand Launch — Macaihah Broussard • Art director

    Nestlé Introduces Vital Pursuit Brand to Support GLP-1 Users, Consumers Focused on Weight Management

    Gadgets

    Oral-B Hopes You Didn’t Use Your $230 Alexa-Enabled Toothbrush | Hackaday

    Germany

    German parliament will stop using fax machines : NPR – I knew fax machines were still important in Austria and Japan. Interesting to see that they were still important in Germany as well

    Health

    Benchmarks for digital marketing in the pharmaceutical industry – phamax Digital

    Hong Kong

    This city never slept. But with China tightening its grip, is the party over? | CNN Business

    HEY YU, DREAMER: Vanity car plates in Hong Kong prove an endearing, enduring trend | The Straits Times

    China’s Economic Worries Spur a Different Kind of Shopping Spree – WSJ – sales of Hong Kong based insurance policies surge again representing middle class capital flight.

    Ideas

    Is human creativity fading away? – by Joel Stein and The age of average — Alex Murrell

    Pop Culture Has Become an Oligopoly – by Adam Mastroianni

    Tony Robbins on How to Make Tough Decisions – Real Leaders

    IPA | Top Ten Practical Stress Busters | IPA

    Is modern life bad for creativity? | LinkedIn – Contagious on Sir John Hegarty’s opinion on how modern life is making great advertising campaigns harder:

    • A lack of shared cultural references
    • Pivot towards sales due to wealth of customer data
    • Remote working preventing collaboration

    IP

    Harley-Davidson sues Next over alleged trademark infringement | FT

    Luxury

    Chinese Firms Are Investing Heavily in Whisky Market | Yicai GlobalAlthough international liquor giants have developed the local whisky consumption market for many years, the market penetration rate of overseas spirits in China, including whisky, is only about 3 percent. This means domestic whisky producers will need to develop new consumption scenarios, Yang said. Whisky consumption in China centers mainly around nightclubs, gift-giving and tasting events held by affluent consumers, Yang noted, but in these scenarios, imported whisky brands with a long history tend to be more popularly accepted,, so it will be difficult for domestic rivals to compete. According to the latest report from alcohol market analysts IWSR, China’s whisky market was worth CNY5.5 billion (USD758 million) last year, having grown more than fourfold over the past 10 years. It is expected to reach CNY50 billion (USD6.9 billion) in the next five to 10 years.

    Yoox Net-a-Porter exits China to focus on more profitable markets – Multi-brand luxury clothing sales platform Yoox Net-a-Porter is closing its China operations, this against a backdrop of other brands also pulling out of Chinese e-commerce including Marc Jacobs fragrances. The corporate line from Richemont was “in the context of a global Yoox Net-a-Porter plan aimed at focusing investments and resources on its core and more profitable geographies”.

    LVMH’s unit put under court administration in Italy over labour exploitation | Reuters – shines a light on the eco-system of Chinese manufacturers inside Italy that use Chinese and immigrant staff to cut costs

    Step Into The Next Chapter Of Oakley’s Future

    Fashion Matters on the big trends from FT Business of Luxury conference and Watch live: Kering deputy CEO Francesca Bellettini in conversation with Jo Ellison

    Ignite the Scent: The Effectiveness of Implied Explosion in Perfume Ads | the Journal of Advertising Research Scent is an important product attribute and an integral component of the consumption experience as consumers often want to perceive a product’s smell to make a well-informed purchase decision. It is difficult, however, to communicate the properties of a scent without the physical presence of odorants. Through five experiments conducted in a perfume-advertising context, our research shows that implied explosion, whether visually (e.g., a spritz blast) or semantically created, can increase perceived scent intensity, subsequently enhancing perceived scent persistence. It also found a positive effect of perceived scent persistence on purchase intention. In conclusion, the research suggests that implied explosion can be a powerful tool for advertisers to enhance scent perception, consequently boosting purchase intention.

    The great fashion Brexit? Why UK designers are decamping to Milan | Milan fashion week | The Guardian

    Marketing

    How SEO moves forward with the Google Content Warehouse API leak | Searchengineland, original leak here: An Anonymous Source Shared Thousands of Leaked Google Search API Documents with Me; Everyone in SEO Should See Them – SparkToro and How independent websites are dealing with the end of Google traffic – The Verge

    CHARLOTTE TILBURY CELEBRATES A YEAR IN GAMING • Women in Games

    The Problem With Behavioral Nudges | WSJ

    Touchpoints and the Omnichannel Revolution | BCG

    Marketers’ Meta habit is reshaping the ad industry | WARC

    Bank on it: Financial media networks are the next big opportunity – The Media Leader

    Fan Bingbing tasked by Malaysia’s Melaka to lure in 1 million Chinese tourists | South China Morning Post

    Mat Baxter’s Huge turnaround job | Contagious – interesting perspective on his time at Huge. What I can’t square it all with is what we know about marketing science and declining effectiveness across digital media

    Celebrate the Unique Ways You Listen With ‘My Spotify’ — Spotify – a judo move on the sinister nature of algorithms in consumers lives

    On my LinkedIn, I couldn’t escape from the Cannes festival of advertising. Partly because one of the projects I had been involved in was a shortlisted entry. One of the most prominent films was Dramamine’s ‘The Last Barf Bag: A Tribute to a Cultural Icon’. It was notable because of its humour, which was part of this years theme across categories.

    Materials

    Renewcell secures a future | Vogue Business – manufacture a fibre that uses recycled cotton instead of wood pulp in viscose

    震災復興から生まれた刺し子プロジェクトをブランドに! 15人のお母さんの挑戦!  – CAMPFIRE (キャンプファイヤー) – ancient Japanese craft – KUON and Sashiko Gals are part of a new generation of designers keeping the traditional Japanese technique of sashiko alive. And together, they are bringing the decorative style of stitching to our favorite sneakers (including techy Salomons!). Sashiko is a type of simple running stitch used in Japan for over a thousand years to reinforce fabrics. It’s typically done with a thick white thread on indigo fabric and made into intricate patterns.

    Media

    The new dot com bubble is here: it’s called online advertising – The Correspondent – old article but useful in the way it calls BS on much of the cheerleading for online advertising.

    The Epoch Times faces a federal money laundering indictment : NPR

    Canon made a special lens for the Apple Vision Pro’s spatial videos – The Verge

    Pinterest ads set for 17.1% growth to reach $4.2bn next year | WARC | The Feed

    Streamers like Netflix, Max, and Peacock are raising prices — here’s why | Yahoo! Finance and The Dream of Streaming Is Dead – The Atlantic

    The Rot-Com Bubble | Ed Zitron

    CEOs Go to War Against Creatives – by Ted Gioia

    Meet AdVon, the AI-Powered Content Monster Infecting the Media Industry

    DVD special features draw fans back to physical media. | Slate – a digital roadmap for streaming services and also shows the power of physical artefacts

    Adtech vendors join forces for European Programmatic TV Initiative – The Media Leader

    The New York Times And Instacart Integrate For Shoppable Recipes | AdExchanger

    Online

    Apple set to be first Big Tech group to face charges under EU digital law | FT – interesting that they are going after Apple first. Japan moves the same way: Japan law forces third party App Stores on Apple & Google | Apple Insider

    Labour raced to outspend Tories online before spending caps kicked in | FT

    Nationalism in Online Games During War by Eren Bilen, Nino Doghonadze, Robizon Khubulashvili, David Smerdon :: SSRNWe investigate how international conflicts impact the behavior of hostile nationals in online games. Utilizing data from the largest online chess platform, where players can see their opponents’ country flags, we observed behavioral responses based on the opponents’ nationality. Specifically, there is a notable decrease in the share of games played against hostile nationals, indicating a reluctance to engage. Additionally, players show different strategic adjustments: they opt for safer opening moves and exhibit higher persistence in games, evidenced by longer game durations and fewer resignations. This study provides unique insights into the impact of geopolitical conflicts on strategic interactions in an online setting, offering contributions to further understanding human behavior during international conflicts.

    The Internet: Now you see it, now you don’t

    Bumble buys community building app Geneva to expand further into friendships | TechCrunch

    TikTok ‘law violations’ complaint referred to US justice department | FT

    Gambling addiction’s growing grip on the frontlines – ripping through Ukrainian armed forces and causing havoc at home

    Retailing

    Sellers Call Amazon’s Buy Box ‘Abusive.’ Now They’re Suing | WIRED

    eBay will no longer accept American Express cards over ‘unacceptably high’ fees – The Verge

    McDonalds removes AI drive-throughs after order errors – BBC News

    Security

    Huawei exec concerned over China’s inability to obtain 3.5nm chips, bemoans lack of advanced chipmaking tools | Tom’s Hardware – this is rather different to the picture that The Economist portrays of an all-conquering Huawei: America’s assassination attempt on Huawei is backfiring | The Economist

    The Stanford Internet Observatory is being dismantled | Platformer

    The West Coast’s Fanciest Stolen Bikes Are Getting Trafficked by One Mastermind in Jalisco, Mexico | WIRED“Not so long ago, bike theft was a crime of opportunity—a snatch-and-grab, or someone applying a screwdriver to a flimsy lock. Those quaint days are over. Thieves now are more talented and brazen and prolific. They wield portable angle grinders and high-powered cordless screwdrivers. They scope neighborhoods in trucks equipped with ladders, to pluck fine bikes from second-story balconies. They’ll use your Strava feed to shadow you and your nice bike back to your home.” – not terribly surprising, you’ve seen the professionalisation and industrialisation in theft across sectors from shoplifting, car theft and watch thefts so this is continuing the trend.

    Fortinet Acquires Lacework | Forrester Research – looks like its a move to prevent supply chain hacks.

    China’s Nvidia Loophole: How ByteDance Got the Best AI Chips Despite U.S. Restrictions — The Information – interesting that Oracle have been caught sanction busting and Chinese firms building US data centres that Nvidia can shop to.

    West grapples with response to Russian sabotage attempts | FT

    “Everyone is absolutely terrified”: Inside a US ally‘s secret war on its American critics – Vox – Indian black ops in the US and Canada

    NVIDIA technology found in Russian military drones | Defence Blog

    Armed gangs stage bank heists in Gaza | FT

    Software

    What’s going on with AI in Sequoia? – The Eclectic Light Company

    Google AI Gemini parrots China’s propaganda – by Wenhao Ma

    Apple Intelligence for iOS 18 is here. But can Apple beat AI rivals? | Quartz

    Anthropic course on Claude generative AI · GitHub

    Consumer Trends unveils the AI-Powered Future – Ericsson – god this is dark.

    Aptoide’s iOS game store launches on Thursday – The Verge

    The Top 100 Gen AI Consumer Apps | Andreessen Horowitz

    Which media companies have made deals with OpenAI? and Media Companies Are Making a Huge Mistake With AI – The Atlantic – sold themselves cheap.

    Microsoft can remember it for you wholesale – net.wars and Windows 11 Recall AI feature will record everything you do on your PC | BleepingComputer

    Apple plots creating AI ‘black box’ for iCloud | AppleInsider

    Future of Software development/SDLC with AI and Gen AI | Forrester Research

    OpenAI Just Gave Away the Entire Game – The Atlantic – The Scarlett Johansson debacle is a microcosm of AI’s raw deal: It’s happening, and you can’t stop it. This is important not from a technology point of view, but from the mindset of systemic sociopathy that now pervades Silicon Valley.

    Goldilocks Agents | Sequoia Capital – the quickening evolution of more capable and reliable AI agents.

    Apple Intelligence is Right On Time – Stratechery by Ben Thompson Apple’s orientation towards prioritizing users over developers aligns nicely with its brand promise of privacy and security: Apple would prefer to deliver new features in an integrated fashion as a matter of course; making AI not just compelling but societally acceptable may require exactly that, which means that Apple is arriving on the AI scene just in time.

    Style

    Can the runaway Hoka boom last? FT

    ‘Rare, vintage, Y2K’: Online thrifters are flipping fast fashion. How long can it last? | Vogue Businessas secondhand shopping becomes increasingly commonplace, this latest outburst brings to light the subjectivity of resale. What determines an item’s worth, especially in an age of viral micro-trends and heavy nostalgia? Is it ethically moral to set an item that’s the product of fast fashion — long criticised for not paying workers fairly — at such a steep upcharge, and making profit from it? If someone is willing to pay, does any of it matter?

    Tools

    YouTube Channel Statistics – ViewStats

    Web of no web

    HyperCinema | Hyper-personalized AI experiences for global attractions – although this is aimed at shopping mall events and theme parks, I could also see it being used in B2B contexts at trade shows and conferences.

    Congress unconvinced by Space Force GPS resiliency plan • The Register

  • #theinternetisdying

    Perhaps due to the febrile nature of the times we live in, the tech-savvy community seems to have become aware of various trends, leading them to conclude that #theinternetisdying. This term itself is imprecise. The internet is a series of abstractions, ranging from physical infrastructure to software and functions upon which communication, messaging, video streaming, app data, transactions, and web pages operate.

    Bovine metaverse

    So technically, #theinternetisdying is actually #thewebisdying.

    So why now?

    I believe the most intriguing question regarding #theinternetisdying is this: why now? What has occurred is more about internet users awakening from their ‘comfort zone’ and abruptly realising how rapidly things have evolved? I believe that a number of inciting incidents are the cause of this sudden wakefulness:

    • Google as regressive ‘tax’ rather than marketing channel exposed.
    • Continued deterioration of Google web search.
    • Link rot.
    • Online media businesses look to make money by selling proprietary and user-generated content to LLMs as a revenue stream.
    • Realisation that a lot of web content is adapted or created using LLMs. The non-English web has been expanded by machine translation of English language content. Secondly, LLMs have been used to create a lot of good enough content in English for publications like Sports Illustrated.

    The reality

    In reality, what’s happened to the web as netizens knew it has happened over time. To use a vintage web phenomenon as an analogy. It’s like the vintage Joe Cartoon interactive Adobe Flash animation Frog in a Blender from the late 1990s.

    A cartoon frog sits in a blender and admonishes the viewer, claiming that they wouldn’t dare to to blend him. The blender has settings from 1 to 10. 1 is mildly agitated water, 10 is instant blended frog. Silicon Valley has slowly upped the power of the blender and netizens realise that things have got weird.

    Google tax bias

    Google search has been on the shit list of websites as engineering documents from inside Google were leaked. They revealed some aspects about how search actually worked that Google had been denying for decades. A few of the key findings were:

    • Google search learns from ‘external devices’, so things like Chromecast dongles. Data from the Chrome browser is used in a similar manner, despite Google repeatedly claiming that it wasn’t in the past.
    • Google values quality, relevant sites, BUT, that value is caveated by restrictions it puts on small quality sites and the benefits it provides to large platforms detailed below.
    • Popular sites receive higher search levels through the ‘Navboost’ system. This reinforces platforms and established sites. Smaller sites would need to spend proportionately more on Google advertising to match their larger competitors traffic funnel. This designed imbalance is the digital equivalent of John Pierpoint Morgan’s nefarious involvement in railroad transportation, or the Vanderbilt and Rockefeller agreement on oil transport in the 19th century, which drove much of the subsequent anti-trust regulation in the US – this is the Google tax. It’s a regressive tax that is levied on smaller businesses and the ‘free web’.
    • It is deliberately set up to hold back small sites, many of whom have seen their traffic drop by up to 91 percent. This adversely affects sights that might have deep domain knowledge, specialist retailers and netizens who host personal sites and blogs like this one.

    Google has even lied in court and in parliaments to hide these facts. Disclosure of these details have rippled through the search engine marketing industry and strongly discouraged numerous web businesses once the truth came out – for a lot of businesses #theinternetisdying.

    For Google the timing couldn’t be worse:

    • It is seen to have dropped the ball on LLMs, despite having developed most of the key technology powering the likes of OpenAI and Anthrophic.
    • Google’s local business advertising for the likes of coffee shops or nail clinics have suffered due to the cost-of-living crisis post-COVID and consumer behaviour changes in various countries.
    • Traditional Google search advertisements for e-commerce are being rapidly eroded by retail media. That is ‘search style’ adverts on the likes of Amazon, Tesco and eBay.

    Google is perceived as having set itself up as the ‘start page’ to the open web, while all the time sticking the proverbial knife in all of which adds an inevitability of the feeling of #theinternetisdying.

    Decline of Google search

    Back in June 2022, The Atlantic complained about the declining utility of Google. This echoed similar themes on discussions that had happened earlier in the year on Hacker News and Reddit. The consensus was that they searched Reddit, StackOverflow, Hacker News or StackExchange as it provided a richer, more relevant base of search results.

    I have been using social bookmarking service Pinboard and photo service flickr for search for similar reasons for the past few decades.

    Pinboard allows me to search 65,000+ web pages that I have found over that time for something that might be useful. My act of saving the page link in pinboard allowed me to categorise the page saved and implied a certain ‘good enough’ quality to it. I also get to search the public links of other netizens that do a similar thing. Pinboard is insufficiently popular to reward spammers, so the quality quotient is relatively high. Reddit offers a more expansive corpus of links and information, without the same level of quality control.

    The reason why Google’s web search has degraded has its roots in Google’s pivot to mobile two decades ago. Google abandoned key areas of interest to web users:

    • Boolean search terms, which would have been harder to do on early mobile devices.
    • Blog search because it was non-mobile content.
    • Google News and RSS, in favour of nascent mobile social platforms that it lost out to.

    And the list goes on, I am less sure why it has suddenly surfaced into the public consciousness now?

    Link rot

    A month or so go my friend Matt in his newsletter recommended a website that allowed you to search Google to find out the oldest mention of a term. So I put my own name in, and nothing came up prior to 2004.

    DECAY

    That meant all records of my early agency work had been expunged from the web. Work that included big brands:

    • BHP-Billiton
    • Ericsson
    • MTV Networks
    • Palm
    • Sony
    • Verizon

    Alongside startup brands that fizzled out almost as quickly as they had started. Maybe there is still some traces locked somewhere in behind LexisNexis or Haymarket Media paywalled databases.

    Author and veteran member of the digerati Cory Doctorow wrote about link rot this year, partly prompted by research from the Pew Research Center. Pew found that 38 percent of content surveyed disappeared over a ten-year period.

    Link Rot google trends

    But link rot isn’t a new concern. Interest in link rot seems to have peaked 20 years ago.

    google books ngram

    Link rot is a subset of a wider concern called bit rot, where digital media degrades over time, or can no longer be read due to issues with software file compatibility. Bit rot as an issue was explored in a series of short stories by Canadian author Douglas Coupland in a book of the same name back in 2016.

    Web of data to walled gardens

    Of all #internetisdying factors, this one surprised me as much as link rot. Closing of Twitter API access was considered to be a defining moment for #theinternetisdying. However it fails to acknowledge that the high point of the web of data was web 2.0 and the comparatively free access to APIs. Facebook with its closed wall by design set the standard for subsequent services like TikTok and Instagram. Like link rot, the awareness timeline feels a decade too late. The closure of Google Reader is an equally big impact back in 2013, stopping mainstream adoption of RSS in its tracks.

    LLMs

    Journalist Steven Levy has been chronicling Silicon Valley for decades. He wrote a few of my favourite non-fiction books including Insanely Great, Crypto and Hackers. In the summer of 2023, he wrote an article for Wired magazine: What OpenAI wants. This became a cover story for the September 2023 issue of the magazine under the header ‘Dear AI Overlords, Don’t Fuck This Up’. Less than a year later, the consensus from netizens seems to be that they already have.

    Dear AI overlords don’t mess it up

    Several things have happened, here are three of them:

    • Imitation became mainstreamed. OpenAI used a female voice that was apparently a copy of Scarlett Johansson’s voice due to Sam Altman’s infatuation with the premise of the Spike Jonze film Her. A Ukrainian YouTuber found her likeness being used as an avatar to sell Russian goods to Chinese consumers.
    • Misinformation had everything from the Pope wearing a designer down jacket and fake black supporters for presidential candidate Donald Trump.
    • Scott Galloway talked about ‘corporate ozempic’ where AI being good enough to reduce human tasks allowing for corporate headcounts to disappear. The CEO of Klarna freely admitted that they used AI to replace 700 employees in customer service roles. AdVon was used to write articles for SportsIllustrated driving anger and anxiety in readers and journalists.

    Automation has eaten blue collar roles for decades, but it has taken the automation of white collar roles to create the panic and sense that #theinternetisdying and AI is killing it.

    The Sky Is Falling In

    Chief Vitalstatistix

    As a child I fell in love the Asterix The Gaul books. In them was the Gaulish village chief Vitalstatistix – who is portrayed as mostly reasonable, well-informed, fearless, (comparatively) even-tempered and unambitious. Vitalstatistix was known for his irrational fear that the sky may fall on his head tomorrow. I was thinking about Vitalstatistix as I wrote this post on #theinternetisdying.

    Back in the late 2000s, Dr Ira Wolfe wrote a book that discussed how online behaviour and Google services were creating irreparable damage in the workplace and beyond. His book was merely the latest in a series of panics about societal destruction:

    Back in March 1997, Wired magazine had their own version of the #theinternetisdying, they believed that web browsing (or web surfing as it was termed back then) was about to be killed off by ‘push technology‘. This episode of The Computer Chronicles gives a good overview of push technology at the time.

    You may already be using push technology without realising it, such as receiving mobile notifications for breaking news or localised weather alerts.

    In conclusion, #theinternetisdying? really?

    Previous technological shifts introduced new challenges, but we adapted and progressed. There’s no reason to think the current ‘#theinternetisdying’ phase is any different from those before. Perhaps in 15 years, I’ll be writing about how people feel the ‘metaverse’ has become closed or some other futuristic concern.

    Posts on related content can be found here.

    More information

    The Internet as You Know It Is Dying | Fabricated Knowledge

    Rot-Com bubble | Ed Zitron

    Pluralistic: Linkrot (21 May 2024)

    5 Reveals From Google’s Leaked Search Docs | AdWeek

    When Online Content Disappears | Pew Research Center

    The Internet: Now you see it, now you don’t | Daniel Tynan

    The Open Secret of Google Search | The Atlantic

    Is Google Dying? | Hacker News

    Geeks, Geezers, and Googlization: How to Manage the Unprecedented Convergence of the Wired, the Tired, and Technology in the Workplace by Dr Ira S Wolfe

    The Trick To Understanding New Media: Nobody’s In Charge | Yahoo! Finance

    Dead tools | renaissance chambara

    Media Companies Are Making a Huge Mistake With AI – The Atlantic

    Meet AdVon, the AI-Powered Content Monster Infecting the Media Industry

    The Japanese knotweed of generative AI is strangling Facebook | Social Warming

    Google messed up Gemini launch, Sergey Brin says | CNBC

    Klarna AI assistant handles two-thirds of customer service chats in its first month | Klarna

    AI makes photos of fake Black Donald Trump supporters | Quartz

    Ukrainian YouTuber found her AI clone selling Russian goods on Chinese internet | Wenhao’s News Blog

    Google Mired in Controversy Over Gemini AI Chatbot Push – WSJ

    Corporate Ozempic | No mercy / no malice

  • Collapsing the funnel

    I was prompted to write about collapsing the funnel as a trope that marketers and adtech salespeople tell each other after listening to Jon Evans Uncensored CMO podcast. Jon was interviewing Josh Feldman.

    NBC Universal TV set (3D)

    Josh Feldman

    Feldman is CMO at NBCUniversal’s advertising and partnerships business. He has been a long-time NBCUniversal marketer. Prior NBCUniversal, Feldman started at Turner Broadcasting, where he took on various roles including national and regional advertising sales roles. He managed client relationships for a range of TV channels including Adult Swim, Cartoon Network, TBS, TNT and TruTV. Feldman’s sales orientation partly explains his collapsing the funnel perspective.

    NBCUniversal

    Mr Feldman is no longer just selling 30 second TV spots at NBCUniversal. NBCUniversal is a plethora of media properties:

    • Live events such as BravoCon
    • Five theme parks
    • 1 billion reach across more than 150 countries
    • 200 networks
    • 350 digital properties

    Here’s the way the podcast broke down:

    1. 00:35 – Josh’s Career Story
    2. 02:50 – How does being creative help with sales
    3. 04:17 – B2B strategies that make NBCU successful
    4. 09:41 – NBCU’s iconic programming
    5. 11:05 – The secret to building strong client relationships
    6. 14:21 – Funnel marketing and the importance of end of funnel <—–
    7. 16:34 – The popularity of Bravo
    8. 17:46 – BravoCon
    9. 21:00 – The best brand activations at BravoCon
    10. 22:51 – How brands can work with talent
    11. 24:49 – Being a media partner for the Olympics
    12. 27:59 – Josh’s advice on creativity and landing your message
    13. 31:39 – Helping smaller brands

    Two aspects to collapsing the funnel

    Josh’s comment about collapsing the funnel was emblematic of two separate trends going on that he encapsulated in this one segment of the show.

    • The first is that performance marketers are waking up to the fact that brand matters.
    • The second trend is the fusion of sales and marketing functions in the business-to-business through account-based marketing or what used to be a sales support function now being lionised as a ‘strategic approach’.

    Brand matters

    A classic example of what happens if one focuses exclusively on performance marketing is the plateauing of growth that occurred in ASOS. The ASOS story is now often cited by marketing media mix experts as an example of what happens when brand building isn’t used to support performance marketing.

    In the noughties and 2010s ASOS was a purveyor of trendy clothing for young people. It started as a copycat brand over time became a competitor to Urban Outfitters and an Etsy-type platform for small vintage clothing and design boutiques.

    ASOS review

    ASOS took a performance marketing approach to growing its business. Over time it expanded to eventually ship to 197 countries, but 40 percent of its customer base was still in the UK.

    ASOS customers and orders over time

    Performance marketing drove the customer base, but didn’t drive a significant increase in the number of orders per customer over time.

    ASOS basket size

    When we look at the inflation adjusted average basket value, we see a steady decline each year, with a sharper drop from 2021 onwards.

    Performance marketing failed to increase basket size, and each customer added was less valuable than the last. Especially when one factors in the complexity of global logistics required for customer deliveries.

    This next bit is speculative, but the geographic expansion drove growth as performance marketing based growth in its established markets plateaued.

    The business went into reverse after 2020. The reasons for this reversal are likely to be multi-variant including:

    • Performance marketing plateau.
    • The bifurcation of the market. At the bottom end, Shein, Temu and TikTok commerce. At the top end luxury brand websites and secondary market platforms like StockX.
    • Culture. Like other online properties including Buzzfeed and Vice News, ASOS had a millennial user base that has been somewhat aged out.
    • The cost of living crisis due to post-COVID inflation.

    Let’s next think about advertising, in particular Les Binet’s explanation of how advertising really works. In this explanation summarises the conclusions of decades of Ehrensberg-Bass Institute research, alongside marketing science work by the likes of the IPA into a six line explanation.

    Advertising increases / maintains sales and / or margins

    By

    Slightly increasing the chance that people will choose your brand

    By

    Making the brand easy to think of and easy-to-buy

    And

    Creating positive feelings and associations

    Via

    Broad reaching ads that people find interesting and enjoyable

    And

    Targeted activations that they find relevant and useful

    Les Binet – How advertising REALLY works | YouTube

    ASOS failed to maintain sales and margins because they focused on targeted activations – that consumers found useful. But the utility seems to have changed over time.

    This happened despite ASOS using data science to optimise their marketing with a particular focus on geo-experimentation in performance marketing rather like trialing TV ads in different TV company regions, which marketers have done for the past 70+ years.

    This isn’t because Lilia and Clara are bad data scientists, indeed I think they are good marketers using data to inform their decisions. The problem was that the focus was nearly exclusively on performance marketing.

    ASOS are an example that has started to persuade performance marketers that brand advertising helps performance too.

    ABM

    Account based marketing is a strategic approach to business sales. It depends on account intelligence and analysis. This insight is used when an organisation considers and communicates with each prospect or customer account as markets of one.

    Target selection becomes important and the criteria is usually focused on the most profitable business.

    In existing accounts it is focused on upselling or cross-selling products and services to the customer. The main focus is alignment of marketing tactics with sales management. This moves the focus from individuals as targets to groups of people within an organisation.

    ABM isn’t about collapsing the funnel per se but about melding it and reshaping it in the service of the salesforce rather than short term and long term brand with sales.

    More marketing-related content here.

    More information

    The Josh Feldman podcast episode.

    ASOS Revenue and Usage Statistics (2024)

    ASOS-related coverage on Financial Times