Digital media taking the lead

Interesting to see in the press both Renault and Heineken have decided to use digital to start their marketing campaigns, recognizing the increase in the importance of the medium in their core target groups.

The emphasis of the Twingo launch ( which means Twist", "Swing" and "Tango" ) is to be on interactivity with the consumer, perfect for the target of this French little number.

Traditionally car Marques have always started with supplemental press campaigns which followed on from the auto reviews – then launching into the TV space, digital then was used as a afterthought ( although more and more being tied into TV, it has always been secondary rather than primary )

Admittedly this approach would not work for the Mercedes M -Class due to the target audience , it does show though that digital no longer takes second place to more traditional media and will become the channel of choice for many brands.


Information from the UK’s National Statitics

“In 2006, 84 per cent of people aged 16 to 24 had used the Internet within the last three months, compared with 52 per cent of people aged 55 to 64 and 15 per cent of those aged 65 and over.”

Advertising’s effectiveness will diminish as we seek to multitask.

The UK government has now enforced laws to prevent you using your mobile phone while driving – a fine and points on your license now await you should you be caught.

This ‘ distraction ‘ and the need for us to ‘ multitask’ in this ever increasingly busy world not only effects how we conduct our lives , it has ramifications in how companies get there message across to consumers.

Convergence of functions is still proceeding at pace - example the advent of the Apple Iphone in June is going to further increase the effects of ‘Digital Distraction ‘ with it’s multiple functions.

Research shows that our ability to multitask reduces our effectiveness in areas such as ability to react to situations ( such as breaking at 70mph ) concentration and recall.

Many believe the young are able to multitask better than older age groups, this is not entirely true. While there ability to operate technology may be better , the older age groups are able to block out interruptions therefore in tests both achieve similar results.

The knock on effect is also once you are distracted, it takes time to get back to the original task.

While media in effect converges ( through the use of content aggregators such as netvibes, mywaves for mobile video ) into these devices and web portals our ability to recall and interact will come under ever increasing pressures from external forces these devices enable.

The key to internet marketing – make the interruption contextual and complimentary.

One to one marketing - embrace WOM to succeed

Oscar wild wrote : Most people are other people. Their thoughts are someone elses opinions, their lives a mimicry, their passions a quotation.

An example of this ( fashion by it's very nature thrives because of this ) on the web with a website web site devoted to tattoos - an art form which each of the people in the pictures will tell you is part of their identity , their uniqueness - looking through the pages and pages of pictures I would disagree !

One to one marketing does not take into account my status within peer groups, it does not maximise my ability to influence others - as Oscar so rightly points out , we all copy in some form or another.

Companies who use relationship marketing need to stop focusing on the biased rationale of their relationship with the customer and focus on the relationships these people have with others. If we do not widen our focus , changing my behaviour is ( if we take into consideration the above ) going to very difficult.

Focusing on me directly without giving me the tools or great product to talk about with my social circle does not maximise my influence group. My conversation could be the tipping point many of us need to make that purchase.

GPS for mobile phones - Finding your way

In a previous post I touched on location based marketing, tagging and the side benefits that GPS navigation has revolutionized not only the journey on which you punch in, but also allows you a freedom of showing you what you do not know in the vicinity.

The future use of this technology is set to increase into the mainstream with the recent news of acquisitions made which are set to reduce the cost of the technology.

The price point being quoted of $1 for a GPS chip now means most handset manufactures could include the technology as standard within their mobile phones.

Presently the cost of software which is used to drive these maps is preventing this from becoming mainstream - however with Googles entry into both the mobile phone and the map market on both a local and global scale, these costs can only plummet.

With these new ultra addressable phones marketeers must ensure their messages follow the three R's - Relevant ( time place and in context ) Relationship ( the phone is tool on which these are built ) and Respect - spam

This week I was forwarded a note on how GPS is helping the visually impaired – a great demonstration on how technology is making a difference to the day to day lives of people.

Mobile TV Making Waves – user generated channels

Two developments which could have a massive impact on the traditional media delivery channels such as Five ( whose business is predominantly based on bought in programming ) and the portal space for mobile phone operators.

First up is MyWaves, a web based service that allows you to create and manage your own content channel for delivery to your mobile phone.

MyWaves combines content channels from familiar established brands such as CNN along with youth brands such as DC Shoes with their skateboarding channel.

The service allows you to create your own mobile entertainment lineup through their website which can then be pushed to your mobile phone for viewing on the move.

The service does not stop there though, with the ability to search from libraries of video and audio slotting these into your channels it gives flexibility and control beyond the traditional TV schedules we are all familiar with. RSS subscription compatibility also ensures that content is updated regularly for services such as news entertainment and with of course the mandatory ability of sharing your inspired choices with others the service is set to become a firm favourite with the mobile phone set.

In the TV space BT ( British Telecom ) have announced their intention for users of their TV on demand service BT Vision to create and share their own content through the service – extending the success of Web 2.0 Myspace into the broadcast area – in effect making TV 2.0.

Both of these moves extend control to consumers – in the example of MyWaves non content producers are under threat as their value decreases in terms of providing a schedule of programming , the challenge BT’s offer now raises is how existing content producers can best harness this extended level of user generation and interaction.

Brand Flocking

Previously I touched on the effects our peers, trusted information sources and relationships effect decisions ( conscious or not ) when making a purchase ( link )

Word of mouth ( WOM ) growth can be seen all around us , with the increase in social based network sites and the increase in corporate blogs and tools making it easier for us , the customer / consumer to spread the word. These tools not only effect our nearest neighbours, but also effect those further on the periphery – much in the same way birds flock.

There are a set of rules by which they operate ( these could be translated to the rules of engagement set down from the brand owner ) which eventually dictate what we see in the behavior of the flock ( or in this case, us the customer ).

There is no one leader within the group ( translated to early adopters ) but each is following a general direction independently while maintaining distance and proximity to their nearest neighbours. This unconnected unrelated set of rules can influence a great number of people to behave in a way which although on the face of it seems to have direction and purpose, does not.

This influence of a few can and does affect the mass highlighting the need ‘ If we please you , tell others – if not , tell us . '

Dell mobile phone - signals new strategy

This week has seen a couple of announcements that reinforce ( as if we needed any further proof ) that mobile is now the focus of attention for the coming years.

Apple’s previous launch of a tangible product in this space with the iPhone into this market has now been followed up by two additional players – O2 ( UK network carrier owened by Telefonica ) and Dell.

Marketing week reports that O2’s intention is to increase its focus in the area of own branded products already having two variants on the market, following their lead Vodafone has also entered into own branded handsets.

More suprising is Dells entrance into this market of huge potential, it is however somewhat worrying.

With failed attempts behind it in the consumer electronic area, it is now entering an already competitive market place.

Dell has three problems

Brand

Firstly in terms of brand elasticity Dell has not ported well from it’s traditional PC’s roots – it failed in the television and MP3 space.

Production

Secondly it will also find itself to be limited in it’s production partners. With the prime producers already signed to key players in the industry and Dell’s position as neither a force in the consumer electronics area or the mobile space it will struggle with delivery of a product worth talking about – with it’s present fiscal position how much money will Micheal Dell by willing to put on the line ?

Subsidies

The fact O2 and Vodafone have now started to expand into branded products this will surely affect the subsidies they are willing to apply to now competition technologies and handsets – this combined with the actual rising costs of producing handsets with extended features for media consumption makes this move by the Dell a high stakes bet.


All the above companies though recognize the growing importance and dominance the mobile will have in the future , moving away from a communications device to encompass many more functions and features all of which offer monetization opportunities – how can they resist.

Is this right for Dell? Are they taking their eye off the ball - should they re-focus on their core market ?

“In the future, everyone will be world-famous for 15 minutes”

Following on from recent article I managed to catch up with Sammy "Flea Market " Montgomery, the Youtube and national TV appearing store owner from Alabama to talk about the effect of the commercial seen now by over 1million people across the globe.

The story

Sammy has been producing adverts for local TV for around 4 years to promote his store. In addition to this around 200 DVD’s have been given to friends and shoppers as everyone commented on the ‘ Happy ‘ upbeat nature of the adverts “ People loved my flow “

It was from one of these DVD’s the full two minute version ( the usual 30 second spots for TV are edits from this master ) was loaded onto YouTube.

A short time after The Ellen Degeneres show asked people to send in their favourite local advert – the reel got sent in and the rest as they say , is history.

According to Sammy there are around 600 websites now linking to the commercial with YouTube still registering over 10,0000 views each day.

“My ideas are Fresh and catchy – the tune gets in your head. There’s a war going on , people are too depressed, people like the way I dance , bug my eyes – it is happy and sincere”
The commercial is global “ I have had contact from all over the World including China , Germany, France , the people from the Bravo Channel it is amazing the response I have had“.

Combine all of this with the infamous Ellen Degeneres appearance, Sammy is well on the way to a true global reach.

Opportunity

Trouble is people cannot purchase furniture online via Sammy – his business is not suited to the distribution model the web requires – it is pure and simple retail outlet – he openly admits sales in the store for existing goods and services have not gone intergalactic.

With now Sammy as his own brand with international exposure, promoting a store which a good proportion of the globe cannot ( or want to ) reach, with products that are not readily transportable ( i.e furniture ) does this all result in no dollars through the door?

In this case not – merchandise

“Many people come to the store now to buy merchandise.” His strategy is nothing ground breaking , but opportunistic it is

• New website will allow for merchandise sales online
• Ring-tones – can’t wait
• Extended dance version for distribution
• T-shirts , posters pens mugs - you get the idea.

Sammy is looking for a brand or product – he is a larger than life character – is he the new face of Coke – maybe not , a cutting edge brand spokesman in the mobile arena , maybe.


On traditional advertising

Commenting on Automotive adverts he outlines that none of the adverts “ make the car your own “ citing the adverts are all too similar and not relevant to people. “ They should focus on features such as the Stereo and the leather. They need to make you think you are driving the car, tell you about the product is all about – my adverts are successful because they are true and believable”

He has a point – with addressable media now a real possibility this showman and salesman from Alabama is citing what all marketers are trying to achieve – addressability and context.

Before speaking with Sammy I had already received details via email of when the next advert is due to be shown , taking a real interest in the personal relationship side of business.


As Andy Warhol said everyone has 15 minutes of fame - the internet this is allowing this 15 minutes to linger, spread and develop.

When companies have their 15 minutes of fame, how will they react ?

Those who are less enterprising and flexible could see an awful lot of exposure resulting in a awful lot of lost opportunity.

IdeaStorm - sinking Dell's ship ?

give us free software !

Following on from my previous article on Dell’s IdeaStorm I thought it would be a good idea to take a quick view now the service has been up and running to see what the main topics and requests were.

Maybe not what Dell was looking for ?

I mentioned in my post about Henry Ford highlighting if he actually listened to what people wanted, we would all now be using super charged horses ( all in black? ) along with a different kind of emissions problem on the streets.

Dell’s ‘ faster horse ‘ is in fact Linux and OpenOffice - a seeming dilemma for the hardware manufacturer ?

By opening itself fully to the Blogging community within the Dell brand it now has a direct responsibility to act on the wishes – what do you do though when these may not be within the companies strategy ?

The suggestion of setting up a blog community within an existing portal / community which was markedly separate from Dell could have provided a solution. By utilizing key trusted employees participation it could have fulfilled it’s wish to take on board feedback, without actually directly associating the entire brand to the exercise as it has now.

Down side – you could perceivably not get the real voice of the man in the street - by placing the blog directly within the Dell site they would have felt the view would be less of the hardcore IT crowd ( as Linux is still regarded as non mainstream for desktops at least ) who would generally populate these technology forums.

Ignorance is bliss

If Dell had decided to ignore the very public voice of customer then it could have be accused of not listening – in a stroke creating a negative feeling in this highly vocal community.

Engaging tools such as blogs and social networking sites which very openly give your customer base a voice requires thought - especially when you very publicly announce their existence.

Thought that Dell has obviously considered thorough the release last month of the N-Seris which comes ‘ Windows free ‘.

Was this a direct result of customer feedback – who knows, but in one fail swoop they have achieved something truly brilliant or a Perfect Storm ?

History

Dell 5 years ago experimented by offering flavors of Linux with it’s hardware – it discontinued due to the cost of installation - this time the offer is slightly different and is based on ' true ' demand - interesting to see the sales figures for these in 6 months - is the offer of Windows free system enough - or do people truly want it preinstalled.

With the changes in management over the past 18 months it needs to keep a focus – shipping Linux and Open source is not ideal , especially when your focus is on margins and profit ( something manufacturing a PC these does not readily produce ) for the additional items upsold during the transaction.

Has Dell done the right thing here ? Should Dell listen to it’s audience ? Is this an ideal opportunity for some Guerilla marketing by it’s competitors to increase there sales on the back of this ?