Customer World

Agency of the future

"The agency of the future will be half a software company and half an entertainment company because that's the new landscape." according to Ajaz Ahmed, chairman and co-founder of independent digital marketing agency AKQA.

American Express brings its customer community together

American Express has launched a unique online initiative called The Members Project that enables its cardmembers to come together as a community by submitting and sharing their project ideas for making a positive impact in the world. Cardmembers can rate and discuss the project ideas on message boards and will ultimately vote and choose one innovative winning idea that American Express will help
bring to life with up to $5 million. The Members Project, which is a part of American Express' new brand campaign, "Are You a Cardmember," highlights the value of being a Cardmember and part of the American Express Cardmember community. "Our Cardmembers make up a unique community -- one that is highly engaged and passionate -- and we know that they care about the world around them," said Jud Linville, president of American Express Consumer Card Services Group. "Through the unique experience of The Members Project, our community of Cardmembers is pulling together and collectively shaking up the world just a little bit to do some good."

Cardmembers can go register and submit their project ideas for making a broad positive impact in one of the following categories: Arts & Entertainment, Business & Finance, Education, Environment & Wildlife, Fun, Health & Fitness and Community Development. Cardmembers can also participate by rating or posting comments about project ideas already submitted. For every Cardmember that registers, regardless of whether they come up with a project idea or just add their input on project ideas already submitted, American Express will contribute $1 toward the winning idea. The more Cardmembers registered, the more dollars available. American Express will commit at least $1 million and up to $5 million for the winning idea.

I love the deep engagement that this idea will create with their cardmembers.

Emerging Customer Interaction Platforms on Joost

I prefer to call advertising opportunities on Joost as customer interaction platforms, as it helps me constantly remind myself of the amount of reinventing we need to do to move away from traditional advertising formats.Ilya Vedrashko has a great post on the kind of opportunities Joost is throwing-up:

• NY Times: “Some advertising on Joost will resemble traditional 30-second television spots.” This is one such spot for Wrigley’s Eclipse gum showing between two Joost videos.
• Joost has a built-in search engine that allows users to find videos by typing in titles, artist’s names, or keywords (it seems that Joost relies on file metadata to identify content instead of indexing the audio or video streams themselves). Ad spots are no different: if you are interested in seeing all commercials by Wrigley, they will come up in the search results.
• Hand Raisers -This is the so-called hand-raiser: if you see something you like on the screen — a commercial or any other video — you can activate the top area of the screen and a small window will slide down to display more information about whatever it is you are watching. Eventually, advertisers should be able to place all kinds of interactive content in this space, from polls to games to web links. According to NY Times, “Joost users will also be invited to provide information about themselves and their personal interests. That will allow advertisers to steer their ads to individual Joost viewers, avoiding some of the wasted spending that occurs with conventional television, when people with no interest in a certain product sit through the commercials.
• ”One of the most interesting features of Joost is its widgets menu. Already, you can chat with other people who are watching the same channel, or IM friends on your Google Talk contact list, or rate individual videos, or use Joost as an RSS reader.

Bill Gates ViewPoint - The demise of Traditional Media

Microsoft thinks the advertising business model for traditional media — venues where advertisers still channel most of their spending — will fall apart faster in the coming five years.

"We're saying newspapers will go online, and there will be massive innovation that comes out of that," Gates said. "We're saying that TV, the biggest ad market in the world, will completely go online and have the kind of targeting interaction that you only get out on the Web today.

Gates gave other specific examples of old media facing withering competition from new technologies.

He said IPTV, the underlying technology for TV over the Internet, makes traditional broadcasting obsolete, supplanting the model in which one show goes to many viewers who may or may not be interested.

The IPTV model presents opportunities for advertisers to tailor messages to viewers.

"In this environment, the ads will be targeted, not just targeted to the neighborhood level ... but we'll actually know who the viewers of that show are," Gates said.

Not everyone agrees on the pace of the transition to digital media and the demise of traditional forms.

"The timeline between now and when that happens I think is questionable," said David Cohen, executive vice president at Universal McCann. His agency is an arm of the McCann Worldwide ad agency, which counts Microsoft among its blue-chip clients.

"There are very few companies that have such a wide range of digital assets that you can run messaging across all those platforms," said Cohen, who works with clients including Johnson & Johnson, Intel, Bacardi and the U.S. Army.

He said Microsoft's challenge is to link all of those platforms to give advertisers a comprehensive profile of a consumer — her preferences, what ads she viewed in the last month and which ones she acted on.

"That's the code that they're trying to crack, and if they do, they'll be unmatched," Cohen said.

Is Joost leveraging the power of internet?

NY Times reports Joost, the Internet television service being developed by the founders of Skype, has lined up several blue-chip advertisers, including United Airlines, Microsoft, Sony Electronics and Unilever, as it prepares for its introduction. While some advertising on Joost will resemble traditional 30-second television spots, others will take advantage of the interactive qualities of the Internet.Instead of interrupting the programming, these ads will appear as the shows are running with a small box called a “hand-raiser.” Viewers who click on the hand-raisers will be sent to an “overlay,” or menu of content created for Purina. “It’s a whole new way to market to people,” Mr. Renshaw said. “You’re combining the best of the rigor of direct marketing with the richness of the Internet and the entertainment of television.”

I see quite a lot of different challenges when it comes to launching an internet television service. It's unlike the traditional TV network model. Let me tell you why:

• Global Vs Local Viewers: Last week, I downloaded Joost TV beta to my desktop. I am from India and I didn't find the content really relevant for an Internet TV viewer out of India. The traditional TV model of the past has always been restricted by geographical footprint and hence content was a lot localized. The internet TV model is a lot more global, hence programming content has to be a lot more inclusive. Imagine internet users from China, Korea, Japan and the like. They might not find Joost TV currently engaging and relevant. But, they have access to Joost TV!
• Build-up vs Scalability: The Network TV model builds-up viewers over a period of time by way of subscriptions, signal availability etc. The internet TV model is scalable right from day 1. The launch of Joost TV in the mind of an avid internet consumer is a worldwide launch and not a geography launch. Millions of internet users will want to use it right away if content is engaging and entertaining. Hence, Joost TV will need programming partners across globe right from its inception not just from one or two countries.
• Interruption vs Irrelvant advertising Most advertising in network TV medium are viewed, more recently, as interruption. Since internet TV is a medium with a vast global reach, the advertising can get irrelevant too, for an internet TV viewer in Europe or India, if the content and ads are US based, for example. Hence, marketing departments of companies need to work closely with their country teams so that viewers are served relevant country specific ads. Else, it is advertising dollars down the drain.
• Single format vs Multi-format : Most advertising in network TV are single-format based – 30 sec TV commercials. But in the case of internet TV there is a lot of interactive and contextual multi-format advertising opportunities. For example, the internet TV viewer may be interested in just seeing, knowing more, buying, chatting, seeking references etc. about brands and they can tracked at different stages of such a behaviour. Hence, the traditional model of just time-based selling will have to move out and new monetization opportunities will have to adopted by internet TV folks. Advertisers have to work on multiple format campaigns that will have to be served to viewers in real time.

The Wired 40 - Most innovative companies in the world

Wired has released the annual list of most innovative companies in the world.  Apart from the Googles, Apples and the like, to me the list has some interesting trends of how customer-focussed innovation is going to be key for survival and growth of companies around the world.

Here are key innovation trends that I picked-up which are going to have significant impact on our society and culture:

• Innovation Trend #1 : Green Energy
• Innovation Trend #2 : Medical Services
• Innovation Trend #3 : Gaming
• Innovation Trend #4 : Information transformation
• Innovation Trend #5 : On-demand lifestyle infrastructure & entertainment

Take a look at some of the companies in this list:

Medtronic has moved up one place in the list. What do they do? They make chest implants that transmits vital signs to the Web for your cardiologist to view. Clearly to me, it is the starting of converting pharma/medical products into a customer services business.

Sunpower is in the business of "green energy". Again an extremely customer-focussed utilities business where they are using solar energy for residential and commercial applications. They have moved-up 4 places in the rankings.

Level 3 - If internet video and  web 2.0 are reshaping our lives, bandwidth and data pipes are key catalysts to this change. Level 3 boasts of 50,000 miles of net backbone. Companies that carry and convert this data into information in real time will be in demand. Level 3 is new to this list!

Exelon is driving innovation around alternative energy generation. Energy crisis is going to be a key global problem and Exelon is aiming to build the first new US reactor in a generation. Companies that can innovative in the area of alternative energy will be the winners of tomorrow. They have moved-up from rank 33 to 17!

Nvidia and Nintendo  are in this list too. Gaming and gaming related business seem to be a key innovation trend that is catching-on. As more and more consumers get addicted or introduced to gaming or as gaming becomes an integral part of our lives, more and more brands need to understand how to leverage this new G-culture. In fact, Nvidia moves-up 11 places and Nintendo is new to this list!

Salesforce.com moves-up 8 places. Clearly, it seems SAAS(Software As A Service model) is here to stay. It's no more just about building great software products but the business model of making it available to millions over the web on an access fee basis is going to be key.

Comcast, NTT Do Co Mo, Verizon are players who are changing the landscape of entertainment and mobile communications. They are driving on-demand internet based entertainment and building new digital lifestyle infrastructure. 

   

Leveraging Mobile Marketing @ Mobile Monday, Mumbai

I spoke at Mobile Monday in Mumbai yesterday and shared my thoughts on how brands could leverage the power of mobile marketing. With over 2 billion mobile phones worldwide and 200 million mobile subscribers in India( and growing!), mobile as a marketing medium is reaching a tipping point. Marketers, publishers, aggregators, application providers, mobile operators and agencies have to unlearn a lot of old marketing principles and adopt new marketing rules for mobile marketing to gain widespread acceptance.

Integrating minds and solutions not just agencies or departments

At OMMA Hollywood, there were some interesting points made on the challenges facing agencies and how they need to rethink their solutions & models for consumers. Take a look:

Tim Hanlon, senior vice president-Ventures Group, at Publicis Groupe's Denuo said "Agencies should be de-siloing to make that TV expression both a branded and DR vehicle," whether it's a TiVo vehicle or a telescope unit, "a little TV with a DR component," adding: "Is that the direct marketing agency's responsibility or the brand agency's? I think it's both, so why do have two separate groups?" He further added "Consumers, especially younger ones, if they see something in any form of media, they're going to want to go further with it,"

Bant Breen, president, Interpublic Futures Marketing Group said ""It's a messy landscape today ... Digital media staff is working two and a half times longer and harder than the traditional media staff," he noted, citing thousands of media channels and different data feeds. "We need systems to coordinate that process. Truly personalized creative could be very, very exciting."

"The big part of what agencies do is to empower consumers to make a purchase decision, foster relationships, enable transactions and deliver information," added Sean Gold, senior vice president marketing, MySpace. "Traditionally, they've been great at delivering information, but the fostering relationships/enabling transactions needs to improve."

 

Is there a need for another TV model on the net?

John Grant has a post on how he just can't understand the Joost Model. I completely agree with him on his views. He writes:

"...the true potenetial of IPTV is best understood by looking at the magazines market; small but intensely interested niches, much bolder, more focused content as a result. There isnt a single music channel that caters to my taste right now, there isnt a channel for recording engineers (my hobby), there isnt a lifestyle channel for 30 & 40-somethings that used to enjoy Shoreditch & Soho but are now more likely to be online on Saturday night God dammit there isnt even a channel for treehugging ethical consumers. that’s where IPTV can shine; the missing diversity and fragmentation in video content; the layer between the BBC and the out and out (and crap but entertainingly so) user generated content."

I can't understand why I need another TV channel on the net. It is not a web friendly service. I am not going to sit and watch it like the tradtional TV network. What we need is setting-up of "My Network" with programming from different channels. But, it must have programming which is my interest-alignable, flexi-time - 5 min channels, half-hour channels, day channels, night channels, payment options - pay per view, pay per hour, pay per day, pay per month, interactivity features  to name a few.

I believe the future web TV channels are ones that are extremely flexible and modular. We surely don't another TV channel on the net.

Snack Media will drive snack marketing

Wired has a nice perspective on the changing face of media and how it is evolving.

For marketers, the article provides great insights into how they  need to reshape their marketing thinking. I think they need to get ready for 'snack marketing' - small byte sized campaigns, convenient and fast food like distribution strategies, messages need to be munchy as it will be consumed throughout the day, communication needs to be packaged well with lots of variety and choices, needs to appeal to different target audiences as they will come with different tastes, brand needs to engage consumers at armslength from where it is consumed etc..

Take a look at why it needs to change because media is increasingly getting packaged like a snack:

Movies, TV, songs, games. Pop culture now comes packaged like cookies or chips, in bite-size bits for high-speed munching. It's instant entertainment - and boy, is it tasty.

Replace Nabisco with Apple, the Mini Oreo with the iPod nano, and youve got a blueprint for the current boom in what might be called snack-o-tainment. Apples single-minded marketing campaign for the iPod (its tunes - not albums - in your pocket, after all) taught us the joy of picking the choicest cuts and shuffling them into individual hit pdes. The same with television: When the video iPod launched in October 2005, we were suddenly eager to pay $1.99 to watch a music video or a recent episode of Lost in a smaller, portable version of what was already available for free on that big square thing in our living room.

Today, media snacking is a way of life. In the morning, we check news and tap out emails on our laptops. At work, we graze all day on videos and blogs. Back home, the giant HDTV is for 10-course feasting - say, an entire season of 24. In between are the morsels that fill those whenever minutes, as your mobile phone carrier calls them: a 30-second game on your Nintendo DS, a 60-second webisode on your cell, a three-minute podcast on your MP3 player.

Welcome to the new world of snack marketing!