AniBlurbs (Column)

“If it was up to Spotify co-founder Daniel Ek, the music industry would be embracing the future instead of constantly fighting against it.

The new business model is “a mix between ad-supported music, downloads, subscriptions, merchandising and ticketing where the user comes first and where the key to monetization comes from portability and packaging access rights. If willing to adapt, the music industry could then have the potential to become a $40-50 billion industry…”

…Ek calls out the music industry for expecting to see business models proven “within months of inception. That’s just not how it works.” Reminding us how Apple’s iTunes was not initially the powerhouse it is today: In its first year, iTunes missed its revenue targets by 30% and most label executives doubted its staying power at the time.

The overall point: success in this industry takes time.”

Source: ReadWriteWeb – Spotify Co-Founder: Notion of Overnight Success “Misleading and Harmful”

On a similar note Denis Doeland has recently posted a sharp column –in Dutch- on his blog regarding the need for a true sense of urgency and vision regarding licensing fees and innovative business models within the (dance) music industry:

“Due to the transition from the physical to the digital age, the economic value of the master has increased by almost a factor 4 and the economic value of the copyright has increased with a factor of approximately 1,5. This is quite peculiar.

Back in the Nineties Dance-labels apparently were content with a lower licensing rate due to the bigger amounts / volumes being sold. Dance-labels apparently used to make do with 5 to 6 Eurocents for each compilation sold.

Furthermore it’s quite peculiar to note that the fees being paid for the master nowadays are up to 2 and even 5 times higher than the those being paid for the copyright itself.

In the ‘physical age’ the Dance-industry was actually a ‘compilation-driven business’. In hindsight it would now seem that, for compilations, one paid for a collection compensation of sorts.

Popular tracks received higher royalty-percentages than the less popular tracks and depending on the commercial success of said compilation the compensation fees would start pouring in. After all, one compilation would fare better than the other.

The numbers mentioned above are food for thought. Does the business model, as used by the Dance-industry, still hold up today? Hasn’t the use of ‘pay-per-unit’ in the Dance-industry become dated?”

Translated interpretation from original post in Dutch: Doeland’s Blog- ‘The Dance-industry used to make do with 5 to 6 Eurocents …’

Currently Doeland is Director of IP Services and Internet at Dutch dance event giant ID&T/Q-dance (of, amongst others, Sensation White fame) and also co-founder of Dance-Tunes.com. He has written two columns touching these subjects earlier this year, both which you can read here (translated from Dutch with Google Translate).

According to Denis, gone are the days of yore when the Electronic Dance Music (EDM) niche was the main innovator within music and in its stead we now deal with record labels unwilling of seeing or proactively taking on the challenge ahead, namely that 95% of all music consumed is done so illegally.

“Recently it became clear that the Dance-industry isn’t really thinking ‘Outside of the box’.

For the umpteenth time in the (close to five years of) existence of Dance-Tunes we’ve received a note from a certain label with the request to arrange it so that customers visiting our site from a certain given country can’t buy the music from the download store of their choosing.

A so-called ‘territorial restriction’.

A customer not originating from the country in which the download store is based may not download his favourite music or the download store may not offer this music to the customer in his own country, but may do so if he’s outside those borders.”

Translated interpretation from original post in Dutch: Doeland’s Blog- Column: Dance-corporations first ‘Out of the Box’, now ‘Back in the Box’?

The confusing situation sketched above is quite ironic as the likes of SoundCloud, iTunes, Last.FM, Beatport.com, Spotify and Dance-Tunes have finally given labels and artists the low-entry platforms and reach to connect with an audience willing to pay, on a global scale. Frictionless and with permission.

Furthermore, I’ve got to second Doeland regarding the irrational rectulance of some labels to cooperate in spreading their content across as many channels as reasonably possible and using the various opportunities to monetize it, while at the same time its these very same labels being the most vocal regarding mainstream media ignoring them and how they’re falling victim to piracy.

Now, personally though I’m an avid fan of EDM (Electronic Dance Music) and other music styles, you’d be hard pressed to find any installed torrent software or illegal content on my hard drive. Indeed, yours truly is dubbed a “Digital Native” or a member of “Generation Y” (being born in ‘81), yet I actually PAY for ALL my entertainment, be it games, music or movies.

Actually, I’m even prepared to travel up to an hour through rainy weather, stand in line for over half an hour, just to get my hands on a shrink-wrapped jewel case, containing nothing more than an optical disk and a stapled bunch of dead trees.

All of this with the knowledge in the back of my head that any colleague or friend of mine would’ve been glad to offer me the music digitally and for free weeks before it’s official country release.

It’s okay, thank you, I’ll wait. It’s worth it. And this is not just a case of N=1, as luckily there are still tens of millions of people like me, including Gen Y, buying entertainment.

If anything, the craze around the late Michael Jackson last summer proved that there’s still life left -no pun intended- in the concept of paying for your entertainment (all under the strict condition that it is made easily available for purchase, and for a fair price of course): people mournfully took their wallets and dug in, in part because his CD’s were all over the place, even down to the local grocery store.

Yet, with regards to EDM –and despite its digital nature- the situation is quite the opposite: I’ve frequently found myself waiting months, or even up to a year before a track could be purchased.

Sometimes the record wouldn’t get released at all, or was made available exclusively for certain territories or download stores, where my wallet or IP address location couldn’t reach it. So much for the internet being international or stateless…

Then, when said release wouldn’t sell (sufficiently), the self-fulfilling prophecy to the eye of the label manager was complete:

“See, I told you people weren’t waiting for this “product”, put in on the front page of obscure download shop X in country Y but only one tune sold, digital music stores don’t work, people only listen to 3 minute radio edits, we need a higher cut, we want an advance, where’s my lawyer, nag, nag, nag…”

Most label managers and representatives still seem to be bereft of any sense of basics such as Time-to-Market, Availability, Distribution, Multi-Channel Marketing, Pricing or Customer Centricity.

As a side note, the latter is a trait common to the whole entertainment sector, yet one they’ve managed to get away with. Until now.

Having worked at Dance-Tunes.com a few years back, I recall sitting on the other side of the table, no longer “just” a fan, but as an “insider”, slowly beginning to see –not understand- how on earth it was possible that so many great tunes and artists were not represented and made available legally online in a timely manner: their label management knew of the possibilities, but explicitly refrained from taking advantage of them.

This wasn’t an oversight on their part, it was a deliberate decision.

A decision made not based on data, insights or Business Intelligence, but based on assumptions and emotion, thus de facto spurring illegal file sharing or use of (mobile phone)recorded live sets and performances amongst the community.

After all, how else could these fans relive and enjoy those moments? How else could they gain access to that obscure remix by their favourite DJ/Producer? How else could they share the alleged Magnus Opus of an underground idol and use this to root for support for their upcoming talent of choice?

Let me get this straight: These fans are the core audience, committed ambassadors AND they’re happily willing to let labels part with their money, yet all those labels seem to be able to do is refuse this legal transaction based on invalid argumentation?

Reading the blog posts from both Ek and Doeland it would seem not much has changed over the past two years. All in all a strange paradox and an unnecessary one at that (and it wasn’t about unbalanced licensing fees either, as to my experience at Dance-Tunes at least, everything was negotionable).

Mind you, this is not a column to bash the music industry, it’s a rant by a concerned fan calling and lashing out to not only label moguls but conservative (small) label owners as well.

This column is written by an ambassador, a loyal customer, a paying fan, who wants nothing more but to see musicians succeed; who feels that talent has the right to be heard and should be supported: The very thing that record labels originally set out to do in the first place, right?

Though your “good old days” of getting-rich-quick may be over, at least now you’ll truly get to fulfill your raison d’être.

Music Industry; Indies and the Big Four alike: you need initiatives such as Spotify, Last.FM and (niche, local) download stores more than you realize. And we, the fans, consumers and artists, need you to understand and act on this.

Change your culture, innovate your business model.

Seeing as music and entertainment are known to be one of the main pillars of any culture, and certainly our modern culture today, it would be a fruitful endeavour if you as an industry took a leaf out of the book from leading labels, innovative start-ups, daring pioneers and bold thought leaders.

Make more haste -and take pride(!)- in acting collectively, with a positive, constructive mindset, instead of endlessly debating fickle things such as fees amongst your kin and punishing your fans and propagators (like BUMA did here in The Netherlands).

You’ve spent the last 10 years doing the latter and we all know where and what that has brought you…

[Disclaimer: Though I’ve had the honour of working, in part as a trainee/intern, with Denis Doeland and Peter Hillebrands at Dance-Tunes, I’m currently not tied to them or any company directly aligned to ID&T/Q-dance/Dance-Tunes. I’ve written and posted this column as a music aficionado to tie in with the annually held Amsterdam Dance Event (ADE), which is taking place this week in my home-town of Amsterdam, The Netherlands. Here’s hoping that the various international attendants, regardless if they read this column or not, take these issues to heart, discuss them and take concrete action in 2010 and beyond.]

“The truth is, advertisers and brand marketers are entering a brave new world — one where code is on par with content. The 21st-century ad isn’t something to be looked at, it’s something to be used… …”Consumers” are now “Users.” So are “Marketers” now “Developers”?”

“…having someone who at least can help a creative team understanding how the software should look is very helpful. “I think having somebody like that, even if they are not the ones coding the app, helps bridge the gap between the technical and the creative…”

Source: AdAge – Agencies Need to Think Like Software Companies

Business Value = Subscribers * Demographics
Business Value = Eyeballs + relevance * intent

Last week’s talk of the town among media in crowd and digerati was that spending on Online Marketing in the UK finally has taken pole position from Offline Advertising.

Make no mistake: this is significant. (Remember this is BBC territory!)

For years eyeballs, attention and now -as predicted and long overdue- budget weight have shifted from TV, Radio and Print to Interactive Media, culminating in this milestone.

Why this change from spending budget on Offline Advertising to investing in Online Marketing Strategies?

And why this plea to repurpose the inner workings of agencies (and ASAP at that)?

Well, to answer the first question, here’s a list of activities people in general are currently undertaking (online) instead of massively tuning in on prime-time (or, indeed, instead of buying and reading newspapers) like they used to:

• Checking news anytime, online, for free;
• Discovering and consuming online content, via “Social Distribution”, for free;
• Shopping online, any time they like;
• Spending days on end playing videogames;
• Spending evenings (cocooning with friends or family) watching TiVo or DVD’s;
• Leaving comments and reviewing products on that very same e-commerce site;
• Discussing and reviewing artists, movies, products and brands on niche online communities;
• Logging in daily to update their status in social networks like LinkedIn and Facebook (or even several times a day – thanks to mobile flat-rate data plans and apt mobile devices and smart phones such as Apple’s iPhone, RIM’s BlackBerry and the Nokia N series, to name but a few).

Okay, I’m bound to have missed many, many more, yet even the online media consumption / activities I’ve inevitably missed, share core characteristics with the ones mentioned above, which, when indentified and aligned next to each other, should underline my statement that agencies need some unadulterated tech DNA should they hope to help their clients connect online with their audience.

“Creatives need to be specialists in the spaces where consumers live that are defined by new technology.”

“If agencies are to continue to offer the highest value to their clients, and realize the full potential of new media on behalf of their clients, they need to make sure every department is as technology literate as consumers” -Simon Mainwaring

So, why the need for new fresh Silicon Valley Blood for agencies in this post-Madison Avenue MarCom ecosystem? Well, for starters, all the activities mentioned above:

- are On Demand;
- are personalized;
- are ubiquitous;
- are interactive (vs. passive content consumption);
- put the user in control;

-And… they’ve become a habit.

Habits slowly but steadily ingraining themselves in modern culture on a global scale.

All of these activities have replaced, or are in the process of replacing, the habit of, say, going home after school or work, watching the same mass orientated, one-size-fits-all TV shows like the rest of the populous, within timeslots deemed fit by a few network coordinators, all the while zapping away the interruption marketed ads…

(On a side note, what has also been replaced is blindly following the opinion of a select few elitists, or opinion leaders, so you will. You don’t need (trust?) one or more reporters from the New York Times to tell you that The Dark Knight or District 9 are movies worth an evening out to the multiplex, what book is a must-read or which restaurant should be on your shortlist, as even more so than usual, nowadays people are forming their own opinion by reading online peer reviews or discussing their customer care experience online, no holds barred.

Internet killed the middleman.

And the platforms facilitating this have a reach of millions and sometimes even billions, globally.

This continuous two-way online dialogue is another reason why the one-way message sending, branding specialists need to acquire interactive skill- and mindsets…)

It’s The Internet, Stupid

“Why doesn’t the traditional model work online? In short, the web is too fragmented (millions of videos, millions of web sites), too loosely coupled (countless hyperlinks, embed codes, APIs), and too nascent (too few revenue models, too little clarity about the future) to fit comfortably into a media conglomerate as they exist today.”

“The challenge is that the scarce resources are different: while the media business continues to rely on “talent,” today’s talent may be writing code rather than screenplays. Distribution still creates value, but it can mean a quickly passed link on Twitter or Facebook instead of an 8 p.m. slot on a broadcast network”.

Source: Giga Om – New Media Demands a New Kind of Media Company

But these factors are not the only causes for this disruptive re-allocating of budget.

Sure, everyone agrees that you should “fish where the fish are”, but the main reason that budgets are finally being freed up from political unwillingness or irrational conservatism, is that in these times of crises, true accountability in marketing and advertising has finally become key.

There’s no need for (hiding behind) second guessing or causality in MarCom anymore: Plausible effective advertising maybe was “fine” yesterday, today proven effectiveness by conversion is vast becoming the golden standard.

The current recession has acted as a catalyst for this silk media revolution, merely accelerating the inevitable.

Now the marketer finally knows which half of her marketing euro, dollar, yen or what have you, is wasted on naught and which half is an investment; generating leads or spurring your core hyper targeted audience into action. All in real-time, if necessary, meaning you can act real-time.

“It’s to no fault that many account teams have no concept of what web development entails in terms of budget and time. Too many times there are promises made that cannot be fulfilled. Having a cross functional, technically savvy professional on hand to lay out accurate budget and time frames in real time ensures that the client is not mislead by a traditional account person reliant on third party estimates.”

It’s no longer about the clever award winning Creative Director and his team of witty art-director/copywriter duo’s.

This also means that the sole focus in marketing and advertising isn’t about “sending content” anymore, but it’s about the underlying technologies that facilitate dialogue between brand and stakeholders, and empowers them both.

It’s about, for example, creating branded tools that might prove useful in everyday mundane tasks for the user: Apps-as-a-Brand-Utility. Eyeballs. Attention.

Now it’s about the pragmatic award winning Managing Director and her team of developers and creative technologists.

“Code” and “(meta)data” have earned their rightful place next to “design” and “gut-feeling”, thus switching the demand from pure creative output to actionable insights based on real-time data; apps and open platforms for effective communication, feedback and co-creation. All of this fundamentally challenging the very raison d’être and modus operandi of traditional agencies.

“Various models have evolved over the years but the successful ones have at their core a few talented individuals who “get it” when it comes to the nuts and bolts of technology, the subtleties of strategic brand building and the figures that justify an ROI…

…the more multidisciplinary people an agency can employ without forcing generalists into specialized silos, the better equipped they’ll be to provide true integration.”

As it is becoming increasingly clear that consumers are changing their daily work-, leisure- and decision-making(!) systematic from Analogue- to Digital based; brands/advertisers and traditional MarCom specialists will have to adapt & change their Tech know-how (what vs. why), their thought patterns (creative top-down factories vs. embracing digital natives and co-creating), and their priorities (branding vs. true empirical accountability) to match this new reality or ultimately end up like that frog in the slow-boiling pan.

The long-term solution however, is not going to be purely a technological one, but rather an anthropological and sociological one; the real challenge lies in the cultural change and organizational restructuring needed to save traditional agencies from the same dark fate (or worse) as the music industry and newspaper & magazine publishers. Out with the old…

[Yes, the very fact that it’s 2009 and I’m posting this rant as being new(s), means that somehow there’s still a need for summaries and musings like this, however obvious and stale it might seem to fellow digital natives and digerati in-crowd alike. Yet, I believe that this needs to be heard and echoed. I’m merely trying to add a drip in the quite -possible very pretentious- hope all the accumulated drips will eventually flood the ivory tower of cognitive dissonance that some board rooms and CEO’s (across all traditional agencies and entertainment outlets) dwell in.]

Read more thoughts about Apps-as-a-Brand-Utility, the future of advertising, “Creative Technologists” and the ideal DNA composition for successful marketers and agencies in the 21st Century in this excellent article by Allison Mooney on Advertising Age.

“…there is a group of executives inside the company that believe “Pay With Facebook” could end up a bigger revenue source than Facebook’s advertising revenues. We’ve estimated Facebook’s advertising revenues will reach $475 million in 2009.

To get an idea what kind of challenges Facebook will have to overcome to get there, consider that during the second quarter, eBay subsidiary PayPal’s revenues were $669 million, up 11% y/y.

It got there with:

• 75 million active registered accounts
• A total payment volume of $16 billion in the quarter
• With accounts containing approximately $3 billion in stored value that is spent every 2 weeks
• Supporting 19 currencies
• With a .30% fraud rate

Facebook can’t approach any of those numbers yet, but it does possess one distinct advantage — nearly 300 million monthly active users.

What’s more, the rousing success that is Facebook Connect — the service that allows users to log in to participating third-party sites using their Facebook IDs with one click — hints that Facebook users might appreciate a similar “one-click” simplicity when paying for merchandise on the Internet.”

Be sure to check the whole article at BusinessInsider.com

Privacy concerns aside, one can imagine that Facebook’s One-Click payment solution, along with the social sharing of articles and posts through Facebook Connect, could be the panacea for newspaper publishers looking for ways of monetizing content beyond the stale and flailing “generate-pageviews-sell-banners” business model.

How so?

Well, besides the general mentality that digital content should be “free”, one of the major issues in monetizing content on the web by surrounding it with a “Pay-First wall”, is the fact that visitors don’t know in advance what (quality) they’ll exactly be paying for; consumers fear buying a shrink-wrapped magazine purely based on its cover, only to be disappointed afterwards.

Whereas on iTunes or with Steam you usually know that what your getting is guaranteed to have a substantial replay-factor or, in the case of iTunes, since the price is relatively low, you can afford the risk of a dud every now and then.

This, arguably, is not the case with ubiquitous news, or in-depth articles.

Utilizing Facebook’s micro-payment solution combined with Facebook Connect however, publishers will have the opportunity of using a “hassle-less” One-Click online payment solution, powered by trusted(?) recommendations of friends: “Hey Todd, here’s an article I just read about Obama’s healthcare reform,  touching it from a viewpoint I believe you’d find interesting, check it out. Cheers, Brian.” Ching!

Farfetched? For a showcase of the true power of social sharing: Think the Bit.Ly-shortened links being universally shared on twitter, spreading idea’s, content (and malware) virally. Only this time it’s done by folks with verified Facebook ID’s so you know they’re actually real and can be trusted.

Off course, should the scenario sketched above come to fruition, Facebook will have to get a piece of the revenue pie too, but the publishing moguls ‘d be wise to carefully re-consider jumping into their fabled “No-Can-Do” reflexes, since it’s becoming increasingly clear that the other option for them and their companies’ stakeholders is not having a pie to share at all…

(PS please note that I deliberately left all privacy concerns regarding Facebook out of this exercise, since I believe that we should topple the online publishing troubles in a concentric way; shilling away to the core, tackling the multifaceted problem layer by layer, instead of pre-maturely obstruficating any possible solution by thinking in limitations only.

This, however, does not imply that I don’t see the possible dangers of Facebook not only owning your social graph and personal data, but also knowing when you bought what (and whom approved said purchase!) and where you’re likely to go to form a political opinion or otherwise.

Though I feel and see that having this kind of aggregated combined profile data of possibly more than 300 million people in the hands of one party could pose a real threat when falling into the wrong hands, I urge you to go and take a look over at Alexander van Elsas’s blog, as he has already indentified and dissected this problem with great abandon.)

The slide -embedded below- is a comprehensive-yet-easy-digestible presentation, sensibly touching upon The Cloud, the hype and misconceptions surrounding it, and the biggest issue the Tech industry will face in 2009: Privacy.

“The Biggest Issue the Tech Industry will face in Two-Oh-Nine is Privacy.”

Nat Torkington from O’Reilly Radar has rounded up a whopping 191 slides on the Future of the Cloud and how this ties together with our online privacy; food for thought as we approach enter The Year of Change…

[Note: Expand the presentation to full-screen so you can read the accompanying notes]

As Social Media reached its Tipping Point in 2008 (judging by the Web 2.0 supercharged, grass-roots powered, landslide victory of Obama in the US Presidential Elections, and the explosive growth of Facebook) claiming that Twitter and RSS feeds will break into the Non-Digerati mainstream in 2009 doesn’t seem to be a farfetched forecast for the New Year -at first sight.

Some other predictions: 2009 will be remembered as The Year Of Privacy, Authenticity, Relevancy (in Marketing), Personal Branding & Change Management. Invoking Trust and investing in Innovation will also be two key cornerstones and challenges on which businesses will have to focus in the coming twelve months. WIRED has an interesting post, zooming in on Six Tech Trends.

Yet, as Seth Godin rightfully points out in one of many brilliant posts this month, backed by the outbreak of the Subprime- & Credit Crunch and the Financial Crisis between August 2007 & September 2008 and the ensuing events; long-term predictions tend to fall flat on their face. Often. And in a very ugly matter actually.

[If you've always wondered how any non-gamer/marketer could have fallen eyes wide shut in the Farce that Second Life inevitably turned out to be (even though it was fairly obvious to gamers that it had "FAIL" written all over its face), see the video directly below.
It perfectly communicates what definitely won't be happening in 2009 or what has obviously already come to pass in the past years, all presented by a "Trend Watcher" preaching otherwise.]

Trends FADS In 2009

Now if there’s one thing -the outcome of- the Obama ‘08 Campaign strategy should have proven to Old School Marketers and Agencies, it’s that releasing control over your brand is actually a good thing and even if this casus doesn’t convince them, the word on the streets is that The Crowds seized this “control” ages ago.

Another fact that should have become crystal clear to even the most obstinate of naysayers, is that in 2009, traditional advertising agencies -and newspapers- will have to either sink or swim in order to survive the Interactive Marketing Tidal Wave: The days of the Mass-Media-Interruption-Marketing-Only approach for immeasurable branding purposes are over, as are the days of unaccountability and vaunted effectiveness of artistic-award-winning-yet-incomprehensible advertisements.

In its place we’ll welcome Neo Marketing [jpeg, 69.75 KB (71428 bytes)]

Neo Marketing = Permission Based Marketing, meaning that we’ll only approach people, humans, individuals -and not “target audiences”- with relevant conversations if and when they see fit; taking in their feedback directly, treating it with respect and giving it some order of priority, all the while keeping a sharp eye on Conversion Rates or Task Completion Rates by Primary Purpose, when speaking of the web specifically. Very transparent, results-driven and opt-in actually ;)

Utilizing Neo Marketing is the most effective, consumer-centric way of building and retaining your business/brand in this day and age. A sound investment by any measure.

“Sending one-size-fits-all messages using mass media, as 20^th century marketing bibles and preachers would encourage and even declare as The Truth, has now definitely and officially become an unaffordable waste of precious resources, time, effort and money. Time to move on.”

Note: Branding won’t become obsolete any time soon, it’ll actually become a much stronger focus in your communication plan with one key-value to communicate: Trust.

So, the corporation has taken a step down from its pedestal, in order for the consumer to be seated on her rightful throne: Thus the internal process (the rules behind which mediocre employees tend to try to hide behind when running from responsibility) or technical system setbacks -“IT department doesn’t allow me to help you out with this problem, even though you’re not the first client facing it and it’s pretty obvious that we’re the cause”- shall no longer be the driving- or leading force behind the way we operate our company or engage with our customers.

Instead servicing the end-consu -serving people shall become the core mindset around which the constellation of your organization shall revolve, as it always should have been the main focus of your Service Strategy.

Some more knowledgeable professionals say some of the developments sketched above will be powered and spurred on by the rise of Enterprise 2.0 (Yup, I’m aware of the “Yet Another Two-Point-Oh Suffix”), and the global economic downturn shall see to it that such (r)evolutionary innovations will come to fruition in the coming year, requiring some serious change-management skills (but also a change of culture and heart for our friends from the “Behind-The-Company-Firewall-Within-The-Current-Software-Platform” IT department, putting the employees needs first in its stead).

[Side note to all skeptics- ("But you lack data backing this thesis") and pessimistic- or conservative detractors out there questioning the coming fall of the current Corporate/Advertising Status Quo:

Please do bear in mind that the Financial Armageddon of 2008 was impossible to foresee by even the savviest and clued up of Economical Analysts anywhere in the world.
Also try to remember that the concepts of Democracy, Freedom and Individualism as we know them today, didn't exist once/not too long ago either, yet they've become more widespread than any medieval Feudalist could have ever feared, the 44^th President of The Free World being the crown jewel supporting this thesis reality. And so on, and so on...]

Furthermore, results-driven Contextual Marketing (powered by the Semantic Web) and data backed analyses shall give us unprecedented REAL and actionable insights into customer behavior (only with their consent!) & their TRUE wants, allowing for even better segmentation and targeting.
Social Networks will further position and consolidate themselves as the new market place where we can meet up, connect with, and empower our customers and prospects, hopefully turning them into brand ambassadors. But only when THEY see fit; it’s their territory after all, see.

This year, the challenge for your organization lies in trying to be available for your consumers and prospects whenever and wherever they feel like reaching out to you, or:

“In 2009 Brands need to become truly ubiquitous in their interactions with consumers”

Brands need to become truly ubiquitous: If prospects or clients wish to ask you a customer support question via Twitter or show their brand loyalty by joining your Facebook Group; then please, by all means, let them have it :)
And if there’s a heated debate on a forum about your product, service or your brand in general; don’t hesitate to join in (Think Vodafone’s WebCare Team). Social Media Tracking tools like Trackur can help you, giving you a dashboard on what the latest talk in e-town is concerning your brand.

To be able to do so, you’ll have to learn to actively participate and interact in those spaces first.

[UPDATE: The Air Force has updated their Social Media Diagram]

Just as “doing a Brand Activation” through TV and Radio in conjunction with print has become the holy trinity for Fortune 500 advertisers in the second half of the 20^th century, the post-modern marketer should let go of The Fear of losing control or actually becoming -God forbid- Accountable and add the online platform and all of its interactive channels in the mix as well.

Conclusion: The internet shouldn’t be treated as just another pillar in the marketing mix; it’s a whole New World of communication opportunities next to the Offline world.

The Break Up

We must try harder to convince our peers, decision makers and conservative marketers that the only other option is to face losing out to the competition; remember this crisis is a catalyst for a long overdue change in not only marketing but business acumen as well.

All in all it won’t be an easy ride though: In the end, if your product or service doesn’t manage to live up to your story, then your organization and all of its stakeholders -CEO, shareholders and employees alike- will have to deal with the harsh consequences, now more than ever.

In the coming months, (enterprise sized) brands will have to show their human face to invoke trust and through this process the Personal Brand will have its mainstream breakthrough.

Employers will have to find a way to somehow incorporate this into their Marketing Strategy fast, as their Corporate Brand, as well as their Employer Brand, will benefit from this -if handled in an authentic way: Forrester Sr. Analyst Jeremiah Owyang has a post touching on Personal Branding vs. Corporate Policies, as always carefully and thoroughly approaching it from different perspectives.

And all the above somehow, mostly ties in to that omnipresent “Privacy Issue” that we’ve got to take into account as well, bringing us full-circle to this excellent presentation by Nathan.

Happy New Year  :)

[Update 13-01-09: link to NYTimes.com & US Air Force Blog Diagram v2]

Lost for words… This has to be the single-most intuitive design overhaul that I’ve had the pleasure of experiencing on a screen, EVER. Period.

And what boggles the mind even more, is that this wasn’t a solo effort by the development team, but a joint-Crowd Sourced process with an astounding product-upgrade as a result.

Check out the short video below, outlining the latest improvements to WordPress, or download it here.

Upon stumbling on this screencast on ReadWriteWeb 5 minutes ago, immediately upgraded to WordPress 2.7, updated the database and… was plainly and simply blown away by not just the changes and tweaks in navigation & look-and-feel, but even more so by the plain flexibility of the dashboard; from this day onwards, I -the user- am in FULL control of each and every aspect of my own navigation/experience…

More often than not, we digerati/Tech pro’s tend to complain and outline major and minor faults with web-apps/IT environments (much to the chagrin of the development team behind it, alas that’s part of the job, innit…) so I really believe it’s only fair to take a deep bow when something comes along that does manage to tick every box and give credit to a team whom wouldn’t just settle for following every rule in the UDX rulebook, but decided to move those goalposts, in one fell swoop, to the level above and beyond the next level all together and set a new industry-wide benchmark…

So, again, hat tip to the WordPress Community/developers, for I can’t remember the last time that I’ve been as deeply impressed with a web-app or upgrade as not only a web professional but as an end-user as well (and judging by the techmeme/resonating echoes in the blogosphere this approval seems to be universal!)

“Code Is Poetry”

and all hope is not lost yet indeed ;)

Cutting deep in your Marketing budget (and thereby seeing it on default as a cost instead of an investment) is a short term tactic that isn’t going to help your company weather these uncertain times ahead of all of us. Instead it would be more sustainable to take a long term approach; a more critical look at what channels your spending this budget on and whether the story you’re telling is in line with the quality of your services or products.

And though your Marketing Department may stop talking about your company, products or service, the consumers are not: Au contraire; their conversations (in the Social Media space) are increasing exponentially!

Furthermore don’t forget to also take into account that most of your competitors are probably not as comfortable with such a progressive world view and will focus instead on the short term outcome. This means that by keeping your budget stable, but spending it more wisely, you could seriously gain competitive advantage.

“So, then since online has the reputation for being measurable, we’ll just cut back in our offline efforts.”

Contrary to popular belief among some of my peers, right now is NOT the time to cut in offline Ad spending: If there’s one thing we’ve learned so far, it’s that in times of Crisis there is a peak in the amount of readers, visitors, viewers and listeners to (in this particular case financial) news papers & websites, TV and radio. People are looking for guidance and a steady rock to cling on to. This means that if you have a relevant story to tell there’s never been a better time to reach out to your customers and core audiences than right now!

The core thing to keep in mind here is of course that the Old Media are by their very nature geared towards Branding, and thus, -though it’s not really scientifically-rock solid-proven-effective in generating revenue- it is a perfect instrument to instill customer thrust in your brand, if handled the right way and in conjunction with Social Media Marketing and other forms of Online Marketing.

The key challenge would be timing, as you wouldn’t want to have a multi-million dollar tagline -Here Today, Where Tomorrow?- proven meaningless overnight…

One way to manage your Marketing budget would be to higher or lower it every Financial Quarter, in a wave as it were, analyzing the results and reacting accordingly. Moreover reallocate the money spent on different channels based on campaign directive. So, depending on the field or sector your operating in, decrease the amount of money spend on Branding through offline channels and shift the resulting saved money towards Online Results Based Marketing, such as SEA and in optimizing the Task Completion Rate by Primary Purpose on your website…

Yep, I’m not advising you to plainly look at Conversion Rates, I’m suggesting to take a more holistic approach ;) Back in 2006 Google’s visionairy Web Analytics Evangelist Avinash Kaushik already foresaw that the Focus (should be) Shifting from Conversion to Task Completion Rate by Primary Purpose.

Upcoming Interactive Channels that haven´t quite fully lived up to their potential yet like Social Media and Mobile are likely to be confronted with closed wallets and plummeting ad spending, not just because of advertisers cutting back in costs and investments, but also because the consumers themselves are being hesitant to spend money on luxury products and services including Mobile Internet and Mobile Wireless Internet Devices.

Yet again here it would be wise to be wary of and avoid the FUD; for example here in the Netherlands the mobile version of the largest news website Nu.nl (translated: Now.nl) is also the largest mobile news site. It is known that CTR’s in mobile enhanced sites are up to 7% or even higher, putting Display efforts on the desktop internet to shame; so though it’s understandable to make a Pavlov Reaction and eschew Mobile altogether, the contrary might be a better move. Whether your campaign is geared towards gaining a high CTR in the first place is of course a different thing altogether (I’d beg to differ, basing a campaign on CTR alone isn’t the most cost-effective way of spending your Marketing Euro).

As for Social Media, as I’ve pointed out at the beginning of this post: Your target audience, consumers and people in general aren’t going to be less critical, or dependent of peer advice and ratings and they’ll definitely be looking for bargain deals on price comparison communities, so keep joining that conversation!

“Zeven op de tien managers en professionals zoeken via internet naar informatie over leveranciers. De helft gebruikt internet voor het opvragen van offertes, het plaatsen van orders en het vergelijken van leveranciers.”

Bron: Ernst & Young ICT Barometer (PDF)

70% van de beslissers in B2B: Rendeert jouw website?

Repeat after me: In connecting with the consumer there are no shortcuts. PR Week reports on Web ‘fakery’ law change.

In a nutshell it finally puts an end to sock-puppeting and astro-turfing, in the UK. Now the following is wishful thinking on my part, but wouldn’t it be nice if this law could be instated as a standard all across the world?

The only negative point I can raise regarding this new regulation, is the very fact that’s it’s a law and thus that the industry failed to be self-regulatory: Aside from the moral stance we can take in this as honest, progressive thinking digerati AND as a consumer -e.g. that it’s wrong for a company or organization to lie and deceive or manipulate the very people that they’d want to sustainably connect with- I find it actually almost unbelievable that there are still marketers/strategists and indeed organizations out there today who are willing to use such methods! Forgotten how for example Sony’s attempt to do so with a PSP-Blog backfired immensely on them a few years back?

Question: Do you enjoy it when you find out that someone you trust has cheated or lied to you and that they did this just because they thought they could and to selfishly further their own good? Thought so. As a human being you don’t like being cheated, nobody does, and since you’re trying -on behalf of your organization- to connect with other human beings, act concordantly. You’re the professional who knows what he or she is talking about when it comes to connecting with the consumers, so convince PR, Branding, Strategy, The Board, the CEO… Whoever gave out the order, why this is akin to shooting yourself in the foot with a bazooka and then show them the alternatives that do work.

“Oh so now it’s about 2.0 and connecting, and we’re a bit low on budget, so I have this great idea: Weblogs and forums are considered 2.0 and those flashy sites are about communicating, but people are posting all kinds of negative comments about our customer service and all, so why don’t we start a conversation there? The catch is; we’re the only participants and by “we” I actually mean “me”: I’ll post a topic and then I’ll post all the comments! This way we’re on the cutting edge of communication in the middle of our target audience AND we’re still in control of our brand.”
Sorry pal, but you’re not in control of your brand. You never have been actually, only now with the advent of the internet and social media this wisdom has become more apparent, a commodity.

“I’m talking zero investment here: Only a few man-hours to write the script and post it and maybe a little monitoring afterwards, the remaining budget can go to banner placements in context with the posts; surefire traffic I’m telling ya!”</Insert Sly Wink here>
Dude this is going to cost you and your brand more than just the low budget, especially in the mid- and long-term, you’re going to look at a negative ROI.

“Huh? B-but… We’re connecting right? We’re not just “sending” anymore and -and hey we’re broadcasting on the Social Media! …Err Right?”

Newsflash: It’s about communicating and connecting with your target audience in an authentic way and hopefully conquering their minds and hearts leading to the possibility that they may become, over time, your ambassador, so you can then empower them to do so in ways that they deem most fit. In all honesty and openness.

But of course to do that, you’d need at least two crucial things: First; an open minded, progressive thinking marketer/strategist and second; a product or service that doesn’t suck. And though you may not see the effects or end results immediately, if either of these two key components is missing, than your organization is in deep serious trouble. Thing is, the trouble doesn’t always come as a bang, but could just as well creep up as a whisper and no cheap postings on user-forum and blogs is going to silence or stop either of them…

As always a sense of urgency always comes when it’s either too late or unnecessary damage has already been done. A real shame, more so because thinking about authentic ways to enthuse the consumer is actually a lot of fun and, if it works, worth a whole lot more to brag about at birthday parties afterwards ;)