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Looking at the bigger picture

In a world that is moving so fast, sometimes it's good to take a pause, stand back and look at the bigger picture. This video looks at just that. Well worth a watch if you haven't seen it. Be prepared to be wowed with some big facts. Did you know....?

What is it about furry animals in advertising?

I have a confession to make. I have a small obsession with Alexandr Orlov. For those of you who don't know who that is. He is meerkat, the now infamous star of Compare the Meerkat, a spoof company devised as a cunning plan to drive awareness of the previously-not-so-interesting Compare the Market.com, a price comparison site. 

Of course, the now infamous meerkat is not the first fluffy being to woo an audience. Back in the 1980's Gordon the Gopher drummed up a huge following on BBC1. Then there was Flat Eric of Levi fame. And lest we forget the wonderful PG Tips Monkey, who I hear is going to be making a comeback soon.
So what is it about furry animals in advertising? Well, it probably has a lot to do with our national obession with pets, but much more to do with some very clever, humourous storytelling.

Unlike the fame enjoyed by his pre-decessors, there is one big difference with Alexsandr's story. He was born into a world gleaming with shiny social media tools, a networking culture where news spreads at lightning speed, and in a climate where, quite frankly, we all really need a good laugh...and often.

A rudimentary tally on followers finds that Alexandr now has: 483,265 Facebook fans and 20,409 on Twitter. As I write this Alexsandr is being primed for a photo shoot with Hello magazine, whilst aficionados are petitioning for cuddly toys to be made available. I think we can safely say Aleksandr is a cult celebrity now. 

Social status aside, this is one of the most enjoyable pieces of advertising I've seen in a while. Reasons why:

- It makes me laugh and smile everytime.
- I want more: There was some great build-up for Alexsandr's latest commercial, but after 30 seconds, I couldn't help but be let down. Too short, I would have watched 10 minutes online. 
- I like telling others about it: Some things are good enough to share and for me, this is one.
- I can be part of it: one of the best features is conversing with this crazy chap. Had the technology been around in the 80s Gordon would certainly have been my best virtual friend. 

All in all, the Meerkat story is a wonderful example of how advertising doesn't feel like it's trying so hard. It doesn't interrupt, just simply entertains without leaving a bad taste in the form of a hard sell. I'm left with incredible respect for those involved and for the brand. Respect for not making me watch a boring ad and giving me something to smile about. Simples...

When low-cost means zero value

Like many people this Easter weekend, I am jetting off to take advantage of the extra few days holiday. Not going far, only over to Northern Ireland (from London), so using the delights of low-cost air travel. 

Low-cost airlines used to be a lot more appealing as a mode of transport. In their hey-day back in the 1990's, they offered us a cheap and modern approach to travelling fast. But what has happened to them? OK, there were never really that many added extras, but compared to the competition - mostly rather dull, and pricey national airlines - they offered value. One fixed low price, plus some refreshing branding and little extras like 'real coffee.'  

Fast-forward to today, and they seem to have lost what value and charm they had. Traditional airlines have caught up on price. And little by little, costs have been going up. There are now extra costs for checking in at the airport, checking in hold baggage, and consequently prices really don't seem to be that low anymore. Ryanair even recently stated that it was considering charging for toilet use - a basic human need. Maslow would be turning in his grave. 

My point is, does it really have to be this way? Where is the entrepreneurial innovation and ideas we saw in the early days from Stelios & co. Perhaps the Easyjet's and Ryanairs should look again at their business models and think about what consumers really, really want. Low price, yes, but if there's no value then what's the point.

State-side, Jet Blue is doing wonders. Responding to the fragile economic climate by offering travellers low fares and a simple promise: 'Happy Jetting.' These guys are not removing value, they are actively building it. To quote just a few elements: they offer your first checked bag free, unlimited brand name snacks, plus TV and radio channels, and of course wrapped in some very cool branding and service. Jet Blue has been embracing social media for some time now, using it to learn about and respond to the needs of their consumers. On Twitter they have over 300,000 followers alone. In stark contrast, Ryanair is using it to fire out promotions. 

I realise the market is somewhat different in Europe than the US, longer distances and so forth, but Jet Blue proves that there is another way. This is the kind of approach we need in Europe - in my humble opinion. Wouldn't it be nice to get excited about short-haul travel again...

Would love to know people's thoughts and perspectives. Anyone know of any other low-cost airlines out there doing great stuff...?

Happy travels.

The business of social media

In March, Mashable.com ran a poll on whether social media could be deemed an industry in itself. Of the 921 that voted - at last glance - a high majority (67%) stated that social media was already an industry in its own right. Another 20% said it wasn’t yet but it would be one eventually, and 13% disagreed that it was not an industry. It's an interesting piece and the dialogue in the comments section is well worth a read, representing all corners of the argument.

However we choose to categorise social media, there's no denying it is an important field in its own right, developing fast, and transforming the way people, brands and businesses communicate with each other. Here are some stats to put this into context:

Reach: Numerous studies have been conducted, with some 5,000 alone on Slideshare under 'social media.' To use a few stats from Nielsen Online, member communities (social networks and blogs) had a global active reach of 67% in December 2008, up five percentage points on the previous year. 30% of the world's Internet population are now on Facebook, whilst take-up by older age groups signals mainstream appeal.

Revenue: One of the big question marks around social media is the advertising revenue, which still remains relatively low in comparison to the audience reach. It is no secret that these types of media platforms are still trying to work out the best ways to integrate advertising, although some, like MySpace, appear to be making headway. The fact remains that even in a recession, social media remains a growth area where more marketers are investing. Some of the latest stats from eMarketer put global spend on social networking at reaching $2.4 billion globally in 2009, up 17% on last year. This is still pocket money compared to major media, but by no means insignificant. Forrester's review also finds that social media spend by interactive marketers is set to continue its ascent, albeit at slower growth rates than in recent years.

Events: There is a vast array of social media events around the world. Mashable.com does a great round-up on a weekly basis, but this calendar from Susan Mernit also gives you a good list by month.

Social media analysts/press: Social media and digital content is without doubt a hot topic for traditional trade marketing and media titles. There are also a host of digital media websites and blogs that have cornered the space, providing social media mavens with a seemingly unlimited about of content and advice. There's no five day working week for the likes of Mashable, Venturebeat or All Things D, these guys are on the case 24/7. 

Social media professionals: There are no shortage of social media entrepreneurs, analysts and strategists reading and waiting to help brands, and the list of jobs is growing. Leading by example, social media gurus are serial bloggers, constantly posting blogs and Twittering 24/7, to keep their community of followers updated. On the client-side, Brandweek recently ran an article highlighting companies that are deeply entrenched in social media. Some are building in-house teams, although it wasn't always just about putting ownership into a silo team. Dell, for example, has a team of 40 conducting social media marketing, whilst Coca-Cola stretches this task across its organisation.

The age of entrepreneurs

Web-preneurs, social media entrepreneurs, open entrepreneurs, serial entrepreneurs....These are just a few of the titles I have observed on Twitter, the ever popular and fast-growing microblogging tool. The overall job market may be contracting, but the ability for individuals to create their own brand and set up shop is easier and more accessible than it has ever been, spawning a new generation of micro businesses.

Broadly, there are a few macro-drivers underpinning this shift: falling cost of technology; the proliferation of free open-source applications; availability of cheaper digital data storage (cloud computing); cultural shifts in working life (at home/on-the-go/virtual); and the push by legal/political entities. 

Rising levels of unemployment is also playing a key role. Some consumers are taking greater control of their lives, and those that are losing their jobs are taking the opportunity to go solo, rather than try to rejoin the employed sector. Richard Branson was recently quoted saying that these new entrepreneurs will play a significant role in taking economies through the recession. Mark Penn, author of Microtrends: The Small Forces Behind Tomorrow's Big Changes, talks about how an 'increasingly independent-minded population,' are playing a key role in creating new markets, and are able to have a major impact on society.      

Social media is acting as a major catalyst for entrepreneurial activity. Adoption is growing at a pace, particularly among small businesses. In the UK, a survey of 500 small businesses by O2 found that one-fifth is using Twitter for marketing, networking and customer service, saving on costs in the process. Separate research by Michael Stelzner in the US, finds that businesses with 2-100 employees are the most experienced when it comes to social media, over one-quarter having embraced it for years.

Changing media

MediaGuardian's changing media summit in March brought together professionals from across the media, publishing and broadcast spectrum. There was a prestigious line-up, including Minister of Education Lord Stephen Carter, Google’s brand new MD, Rafat Ali from Paid Content, Emily Bell at the Guardian, plus a host of others, discussing challenges and ideas on how to navigate through these difficult times. The recession and the fallout of advertising revenue has hit media hard, but structurally, this industry has been under pressure for a good few years. Producing great content may well still be the foundation on which the media industry rests its laurels, but it was clear this is far from enough to survive. 

Here are a few sound bytes: 

- Innovate to monetise the business: The difficulty of charging consumers for content online is keenly felt amid a climate where ad revenues have been plummeting. Innovation in the business model is now critical to ensure survival. Online video and mobile were both heralded as being keys to future success.

- The lucky ones: Wall Street Journal, FT.com for having a solid subscription business stream (thanks to niche content) and the likes of The Guardian and BBC for having the backing of trusts and public sector funding.

- Innovators: NYTimes, The Guardian. Both have taken an open approach, enabling API's to be created using their content. Despite, the tough situation in which the NYTimes finds itself, this brand is ahead of its class in terms of multimedia developments.

- 'Open out' and 'open in': There was a great presentation from Matt McAlister at The Guardian, highlighting that media companies must 'open out' as well as 'open in.' In terms of 'opening out,' content companies need to increase their reach on other platforms, networks and websites, to be heard amongst the sheer volume of content. The 'opening in' broadly refers to adopting a more collaborative approach, whereby external partners are brought in, to help the company explore new avenues.

The Universe in 2009: according to SEED magazine

I must admit I have never been drawn to a science publication, but SEED has me here. This rather clever digital showcase from SEED magazine, delves into optimism looking at the ideas that get us there. A wide range of trends and insights from around the world, showcased beautifully on this digital map.

The Universe in 09

A whole lot of good ideas

Last Friday I had the pleasure of joining a bunch of rather nice people at the PSFK’s Good Ideas Salon, hosted at the Guardian’s brand new building in Kings X. Really cool building by the way. As the name suggests, good ideas were the order of the day, looking at this subject from different perspectives: social/cultural, design, technology, youth, storytelling, media, communities and collaboration. The eclectic mix of people in the room, from designers, planners, researchers, media, agency and client-side was testament to the variety of angles covered. A lot was said that an article can't really do justice. So, I'll just say here's a wrap of some of the bits I quite liked...

The day started with an opener from Mark Earls, founder of HERD consulting, underlining why good ideas matter, especially in these uncertain times with tightened budgets. An underlying message was the importance of experimentation, immersing the brand in new technologies, and looking outside of an industry or marketplace for ideas that can be applied under one’s own roof. Mark also highlighted that the overriding financial imperative driving many businesses, can limit the ideation process, as can pigeon-holing it within an ‘innovation’ hub or department. In essence, he gestured towards a more open and collaborative approach to creating ideas, a theme that continued throughout the day.

The ‘Good Ideas from London’ session brought together a mix of speakers from the media and publishing worlds to discuss London as a creative collective. It was a big topic to deliver, but there was some anecdotal evidence to suggest that London continues to spearhead its position as a creative hub. Journalist Matt Brown was keen to point out London’s scientific credentials, citing the Wellcome Collection as an example of fusion between science and creativity. Talking on the broader cultural environment and leisure scene, Taryn Ross, co-founder of Urbanjunkies noted that new ideas are emerging at the premium and budget end, to the detriment of the mid-market. Members bars and pop-up restaurants are satiating consumers desire for ‘affordable luxuries.’ Grassroots events cultivated by small communities, meanwhile, underline a trend towards hooking up in real spaces. Justin Quirk, associate editor of FHM and Arena, drew some parallels in the publishing sphere, highlighting the continued fortunes of The Economist, Monocle and The Daily Star, with middle-market titles feeling the crunch. There was talk of a ‘smart period in publishing’, as consumers demonstrate a renewed interest in politics and more intelligent content…even some FHM readers (honest).

A recurrent theme throughout the day was the infiltration of technology into consumer’s life and the rise of ‘lifelogging.’

This is a trend that is becoming more entrenched in societies as people embrace social media, cataloguing and sharing every part of their lives online and offline. It was fascinating to hear Richard Banks from Microsoft’s research division divulging some of his research around what he called ‘technology heirlooms.’ The fast turnaround of technology and adoption of new gadgets means we are constantly consuming and producing more digital content. But, as Richard points out, how will we cope with the every growing amounts of digital content we are creating? What will happen to it all as it is passed down to next generations? Microsoft non-commerical focused research hub brings together some 1,000 researchers, many of which are straight from academia, study these concepts through ethnographic research.

The ‘good ideas on mobile’ panel continued the focus on lifelogging. I was hoping for some pearls of wisdom about the ‘next big thing in mobile,’ but there wasn’t much chat on specifics, and perhaps rightly so. As Jonathan Macdonald (Ogilvy) firmly pointed out, good ideas in the mobile space today should centre on the utility it can yield to the consumer, as opposed to focusing on the latest gizmo. Clearly, these guys were ahead of their game and the curve in terms of technology adoption, but as they duly pointed out, their behaviour is a far cry from your average consumer. My takeaway was that good mobile ideas are the ones simple enough to make an impact on the everyday consumer.

Towards the end of the day, we moved into a couple of discussions around 'good ideas through collaboration.' Although the concept of collaboration is far from new, there is undoubtedly a shift towards brands opening the doors to consumers, and other companies from whom they can learn. One panellist even noted that there was an element of arrogance to companies who didn’t embrace collaborative ventures, thinking they understand it all. Fair point, but others were keen to point out that opening the doors to greater collaboration is challenging, requiring a certain amount of control to be relinquished. Not always an easy move.

The rise of digital technology is driving the need to collaborate in media and publishing, where specialists can be brought in to help inject fresh ideas. The Guardian’s Simon Waldman gave a great presentation on how his own organisation has embraced the digital era, requiring an altogether more collaborative and ‘open’ approach to working from the top down. Pat Connor (BBC) highlighted that a wider range of tools are making it easier for people to share and collaborate to produce creative ideas. Experimentation is important in the media and publishing sectors, where print is under threat, but there was cautionary advice about being too overzealous with the latest craze. Instead, the focus should be about meshing digital ideas that fit with the brand.

There were a number of other great talks looking at design, youth and storytelling, including Colin Nightingale’s tale of Punchdrunk and the Clod & Pebble store, bringing a new meaning to concept of retail theatre. Troika’s Eva Rucki gave us a showcase of some of their art installations, with a detailed explanation of how they pulled off the cloud in Terminal 5. There were others, such as Christian Nold’s discussion around bio mapping and community that I wouldn’t dare try and summarise, but you can read more about him and his ideas at SoftHook.

All in all, it was a great chance to delve into a variety of disciplines, to see how good ideas are being fostered and be among some hugely talented people. Looking forward to the next one…

The enterprise of the future

As nations from around the world fight it out for Olympic glory, IBM’s third global CEO survey* reveals that leading enterprises also face a tough battle in the corporate sphere.

On multiple levels, the speed of change has increased dramatically, but corporations say it is not always easy to keep pace. Market factors, people skills and technology are the top three change drivers, but environmental issues have also gained ground over the past two years. 

In this more dynamic landscape, enterprises must be ‘hungry for change’, and able to adapt quickly with strategies that take advantage of such challenges. Aligned with this thinking, is the requirement to be ‘disruptive by nature’, whereby organisations disrupt elements of their business or industry to create competitive advantage.

Organisations also need to be ‘innovative beyond customer imagination’, producing products and services that meet the needs of sophisticated and demanding customers around the world. Two-thirds of CEO’s believe there is a significant opportunity in targeting the growing communities of affluent consumers in fast-growth markets.

The growing pressure on corporations to be open and honest will continue to force them to be ‘genuine, not just generous’ in their approach to corporate strategy. Corporate social responsibility policies are likely to be extended deeper into the value chain in a bid to be more transparent about their activities. 

In terms of the global agenda for enterprises, the issue today is centred around how best to organise and operate the global business. Securing what IBM terms ‘global integration’ opportunities, via collaborations and partnerships is hugely important. The survey found that over half of CEOs are planning to change capabilities, knowledge and assets to better integrate their business globally.

*The IBM Survey questioned 1,130 CEOs, general managers and business leaders in 40 nations and across 32 industries.

The full survey is here