This Tweet/post of mine really blew up and I thought I would share it here as well. When we first started Percolate I wanted to make sure that we didn’t become a company that became taken over by meetings as we grew. To that end I set a few simple rules in place, most important of which was that no phones or computers were allowed in meetings. Below are the rules or you can check out the whole post at the Percolate blog.
In July we’re holding our first conference at Percolate. It’s going to be called Transition and it’s meant to explore how the world, and specifically marketers, are dealing with the massive transition to software and systems. I touched on what this means for marketers in a blog post last week:
For marketers this means two things: First, as a core function of the business and owner of the message, this explosion in communications technology falls squarely in their wheelhouse and gives them new opportunities to prove their value to the organization. Secondly, to achieve this, marketers will need to rethink the way they operate as the core channels (local to global), audiences (millions to billions), and content (stock to stock & flow) they once worked through shifts under their feet.
Marketing is in transition. But what happened? How did it happen?
Phase 1: 1989 – 2004
The shift started 25 years ago with Tim Berners-Lee and the founding of the World Wide Web. For the first time people and organizations were able to connect directly with each other. Marketers went out and built websites, email marketing lists, and (in)famously, banner ads to reach these customers.
A bevy of new companies emerged to help marketers deal with the various needs that surfaced in this period: Omniture for analytics; DoubleClick for serving banners; and, of course, Google for organizing the web and helping marketers reach the people searching it.
While the total number of Internet users grew by more than 30x during this period, 2004’s mark of 910 million users still only accounted for 14% of the world’s population.
Phase 2: 2004 – 2014
Ten years ago social built a layer on top of the web. Led most famously by Facebook, this layer provided a graph of relationships and interests that started to map the planet. Social presented a different set of challenges to marketers. Instead of just thinking about pushing messages, social created a participation architecture on the web that caused the enterprise to think about moving their service infrastructure into a digital environment.
As smartphone sales began to accelerate a few years ago, usage and engagement numbers in social skyrocketed. The growth of those companies followed suit. Facebook became only the second platform in history to pass 1 billion active users, joining the Fortune 500 in 2013. Today, across the Internet, there are nearly 3 billion total users, covering roughly 40% of the world’s population.
Phase 3: 2014 – 2019
That leaves us at today: The third phase. What started just over five years ago, with the introduction of the iPhone, has become a revolution that changed nearly every facet of communication for both individuals and enterprises. While it took us over 20 years to reach 3 billion Internet users, it’s predicted we’ll double that number in just the next five.
In the 1960s Marshall McLuhan theorized on the effects of the “global village,” a place where “everybody gets the message all the time.” In just five years that world will be a reality. For all the questions people may have about valuations of these new-media companies, what we do know is that for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%. It’s hard to overstate the realities and excitement of nearly 100% of the planet being connected on the same network.
I’ve been experimenting with posting around the web lately. This weekend was a post about first principles thinking on Medium and today it’s a post about process on LinkedIn. It’s based on a quote I gave to Digiday about what big brands can learn from startups:
I’ve been reading “Creativity Inc.,” the Pixar book by Ed Catmull. In it, he realizes at some point the goal became the process — the goal was not making great movies. That’s what happens inside big companies: The process becomes so locked into place that you forget what your actual goal is. It’s not to follow the process, but it’s to create a great product or deliver a great service and do whatever the brand is there to do. Inside startups, because they’re so much smaller and younger and the process is much less fossilized, you don’t have the chance to do that. What I’m trying to do at Percolate is make sure we never do that. I want people to think the process can change. Because it should.
Lately I’ve been talking a lot about Elon Musk’s idea of first principles thinking (finding the atomic unit of a challenge and building up from there) and I decided to write a bit about it over at Medium. Here’s a snippet about how it applies to working with designers:
What’s interesting, though, is I think you can apply it beyond just big problems to almost any challenge a company or product faces. I gave a talk at our recent DesignTalk event about how to work best with designers. I think encouraging designers to be first principles thinkers is key to getting the best work possible. By this I mean the best way to work with a talented designer is to define the core components of the problem and let them solve up from there. Encourage them to throw away existing solutions and instead solve the problem in a way that best suits the unique issues faced in this case. While the end solution might resemble something else that exists, by not applying analogical thinking you at least know that you’ve arrived at it because it is the best, not because it already exists.
I really liked this quote Martin Weigel posted from Stephen King (the marketing guy, not the horror filmmaker) on how marketing companies must evolve:
Marketing companies today… recognize that rapid response in the marketplace needs to be matched with a clear strategic vision. The need for well-planned brand-building is very pressing. At the same time they see changes in ways of communicating with their more diverse audiences. They’re increasingly experimenting with non-advertising methods. Some are uneasily aware that these different methods are being managed by different people in the organisation to different principles; they may well be presenting conflicting impressions of the company and its brands. It all needs to be pulled together. I think that an increasing number of them would like some outside help in tackling these problems, and some have already demonstrated that they’re prepared to pay respectable sums for it. The job seems ideally suited to the strategic end of the best account planning skills. The question is whether these clients will want to get such help from an advertising agency.
I wrote a little thing over at Medium about what I’ve learned about how sales works from watching the great sellers on our team at Percolate. Here’s a snippet about how great sales people don’t run over barriers, they get to know them and figure out how to work with them:
What I mean is the best sellers don’t bowl clients over, they work with them, understand them, and ultimately make their way around every potential roadblock together, no matter how vague it might at first appear. This isn’t just about asking easy questions and listening for answers, it’s about being able to get beneath the surface and actually identify a core challenge or opportunity. In this way the same thing that makes a great seller actually makes a great product person: The ability to get beneath the surface and get the root cause of an issue. The challenge here is that it’s not always easy. “Whying” sounds a lot like “whining” for a reason, and that’s the core question you need to ask to identify true opportunities. While a great seller might make a client feel uncomfortable as they go through this process, they build trust in their desire to actually solve a problem instead of just selling whatever it is they have.
Yesterday I posted a few points in response to James Surowiecki’s New Yorker piece on the role of brand’s in a world of better information. I made a specific distinction between research-heavy products like cars and a product like soap or toothpaste, which people generally choose on brand alone. On Twitter someone asked whether that meant car brands are actually less valuable in this new world and I thought it was worth answering here as well as on Twitter.
First, the answer is no, they’re not less valuable even though research does even the playing field to some extent. But there are two important points about how people buy cars that need to be addressed. First, people generally choose out of a subset. If you want a “luxury” car you’re choosing between a BMW, Audi, or Mercedes. You don’t get to that point without brand. If you’re Kia right now, you’re advertising the hell out of your new car because you want to be in that decision set. While your ultimate decision may be purely on product merits (though it’s likely not), you have eliminated 99% of the other car options off brand alone.
Second, just want to reshare something I wrote a few months ago. This argument about brands is part of a larger anti-brand argument that’s best categorized by the quote “advertising is the tax you pay for being unremarkable.” Back in August I explained all the reasons this isn’t true and they still apply here.
This morning Felix Salmon tweeted James Surowiecki’s latest article about brands at me to see what I thought. Basically Surowiecki makes the case that brands are less meaningful in a world of information efficiency thanks to the web. His thesis, roughly:
It’s a truism of business-book thinking that a company’s brand is its “most important asset,” more valuable than technology or patents or manufacturing prowess. But brands have never been more fragile. The reason is simple: consumers are supremely well informed and far more likely to investigate the real value of products than to rely on logos. “Absolute Value,” a new book by Itamar Simonson, a marketing professor at Stanford, and Emanuel Rosen, a former software executive, shows that, historically, the rise of brands was a response to an information-poor environment. When consumers had to rely on advertisements and their past experience with a company, brands served as proxies for quality; if a car was made by G.M., or a ketchup by Heinz, you assumed that it was pretty good. It was hard to figure out if a new product from an unfamiliar company was reliable or not, so brand loyalty was a way of reducing risk. As recently as the nineteen-eighties, nearly four-fifths of American car buyers stayed loyal to a brand.
4. Consumers have always been in control. There is more efficiency in the market now, but fundamentals are the same. This is the big piece. I’ve argued this often. Word of mouth always drove purchasing decisions. Certainly this is much more efficient, but I’m not sure I’d say it’s a sea change.
I was reading this speech from Andy Grove, Intel chairman, from 1998 and while the whole thing is a bit hard to read, this bit about strategic inflection points and competition was quite interesting:
Some key warning signs that hint that the change you are dealing with make a Strategic Inflection Point is when it is clear to you that all of a sudden the company or the entity that you worry about has shifted. You have dealt with one particular company or establishment as a competitor all your life and all of a sudden you don’t care about them, you care about what somebody else thinks. I have this mental silver bullet test. If you had one bullet, who would you shoot with it? If you change the direction of the gun, that is one of the signals that you may be dealing with something more than an ordinary shift in the competitive landscape.
Last week I wrote a piece on AdAge revisiting Stock and Flow. If you’re interested you should read the whole thing, but here’s a snippet:
To answer that question, let’s start with what’s changed. The core social platforms, Facebook and Twitter, have continued to explode. Mobile has enabled a host of new social platforms such as Pinterest and Snapchat to grow at breakneck speed. LinkedIn has added informational content like LinkedIn Today, LinkedIn Influencer and sponsored updates. Google has built a massive social system with the deepest mobile integration of any platform we’ve ever seen (thanks to Google’s Android mobile operating system). “Native” advertising has come to the fore. And search and social have crashed together: According to SearchMetrics, seven of the top eight signals in social now come from search.
Dr. Strangelove, my favorite movie ever, turns 50 years old this week. The New Yorker has a great story of just how frighteningly accurate the movie’s portrayal of poor nuclear security actually was:
With great reluctance, Eisenhower agreed to let American officers use their nuclear weapons, in an emergency, if there were no time or no means to contact the President. Air Force pilots were allowed to fire their nuclear anti-aircraft rockets to shoot down Soviet bombers heading toward the United States. And about half a dozen high-level American commanders were allowed to use far more powerful nuclear weapons, without contacting the White House first, when their forces were under attack and “the urgency of time and circumstances clearly does not permit a specific decision by the President, or other person empowered to act in his stead.” Eisenhower worried that providing that sort of authorization in advance could make it possible for someone to do “something foolish down the chain of command” and start an all-out nuclear war. But the alternative—allowing an attack on the United States to go unanswered or NATO forces to be overrun—seemed a lot worse. Aware that his decision might create public unease about who really controlled America’s nuclear arsenal, Eisenhower insisted that his delegation of Presidential authority be kept secret. At a meeting with the Joint Chiefs of Staff, he confessed to being “very fearful of having written papers on this matter.”
On Friday a rather long piece I wrote on content marketing went up over at Re/code. The point of the piece was to try to answer the three main questions we hear around the space: What is content marketing, why is it a big deal for brands, and how big could it really be? I did my best to answer all three questions and while I won’t reproduce the whole thing here, I did want to give a little flavor for a few of the points I made that I think you’ll find most interesting.
On the future of following brands:
The last note on the “why” question is around followers. For a while now, questions have been asked about why consumers follow brands, and what this means. Whereas at one time follower count was a meaningful metric for brands, it’s not any more. The major social platforms have a clear message to marketers: We have the scale and ad products to allow you to reach any consumer segment for a reasonable cost. The marketer’s job, then, returns to creating content that captures their attention and achieves the brand’s objectives, whatever those objectives may be.
On why mobile is so meaningful for the future of digital advertising and content:
What happens in mobile is that all the things that made up digital marketing over the last 15 years start to go away. That means no more flash, cookies, banners or Facebook sidebar ads. The mobile opportunity is about “native advertising,” which, in English, is just about the content and the ad being the same thing. To think about the market opportunity, then, you need to look at the market opportunity for the biggest social platforms (a.k.a. mobile media companies) in the world: Facebook, Twitter, and LinkedIn. (I’m leaving Google off for the sake of simplicity, but I think they belong in this group, as well.)
And, finally, my three big/almost-definitely-inarguable conclusions driving the growth of content marketing:
1. Massive amounts of consumer attention are moving to mobile social platforms.
2. Those platforms are made up of streams of content, and will offer brands increasingly impressive parameters for targeting unique groups of consumers.
3. For brands to be successful in reaching consumers, they will need to create engaging and on-brand content.
It seems relatively simple, then, that content — and therefore content marketing — sits at the center of the next phase of marketing technology, and offers a massive opportunity.
Go read this whole interview with John Seely Brown. It’s awesome. Here’s a few of my favorite bits.
On content versus content:
Remember that image of the statue of Saddam Hussein being pulled down? Well, the photo was actually cropped. Those were Americans pulling the statue down, not Iraqis. But the cropped photo reinforced this notion that the Iraqis loved us. It reshaped context. Milennials are much better at understanding that context shapes content. They play with this all the time when they remix something. It’s actually an ideal property for a 21st century citizen to have.
On creativity versus imagination:
The real key is being able to imagine a new world. Once I imagine something new, then answering how to get from here to there involves steps of creativity. So I can be creative in solving today’s problems, but if I can’t imagine something new, than I’m stuck in the current situation.
On the dangers of a STEM-only world:
Right. That’s what we should be talking about. That’s one of the reasons I think what’s happening in STEM education is a tragedy. Art enables us to see the world in different ways. I’m riveted by how Picasso saw the world. How does being able to imagine and see things differently work hand-in-hand? Art education, and probably music too, are more important than most things we teach. Being great at math is not that critical for science, but being great at imagination and curiosity is critical. Yet how are we training tomorrow’s scientists? By boring the hell out of them in formulaic mathematics—and don’t forget I am trained as a theoretical mathematician.
Not to talk about McLuhan too much, but he also deeply believed in the value of art and artists as the visionaries for society. I think there’s obviously a lot of room here and the reality of the focus on STEM is that we have so far to go that it’s not like we’re going to wake up in a world where people only learn math and science. But I think the point is that the really interesting thoughts that come along are the ones that combine, not shockingly, the arts and sciences.
Again, just go read the whole interview. It’s great.
I posted this over at the Percolate blog last week and thought I’d post here as well. It helps explain what I’ve been up to for the last few years. To all of you: Thanks so much for your support along the way. I really really appreciate it.
In trying to write up this post recapping 2013, I kept trying to come up with a way to define the first three years of a startup’s life. The first year is clearly about identifying the problem. We spent 2011 with a clear sense that there was a challenge to be solved in helping brands create content with technology (because James and I had lived it in our previous lives in the marketing world), but we still had to prove it was something we could solve and would drive value for our clients.
By the end of year one we had some great clients and a good sense for what needed to be done. From there we spent year two proving it. We started to build a bigger team and bring on more and bigger clients. By the end of year two (2012), we had seen real client success and continued to see momentum in the content space (especially from the big social platforms, who after Facebook’s IPO in May, 2012, were taken a lot more seriously by the business world).
Year three, last year, was about building out the business. We nearly tripled the staff in 12 months (we’re now almost 90 people), shipped an incredible amount of product, and brought some of the world’s best brands on board as Percolate customers. As a co-founder it’s a crazy and amazing feeling to walk into our office and feel the buzz of that many people working on delivering great marketing technology for clients. That our mission, to be the leading content marketing platform, has stayed the same, only makes things feel even better.
But, of course, the life of a startup isn’t about looking back. So what does year four (2014) hold for Percolate? I’d say this is the year we fully establish ourselves in the market. We’ve learned enough (both over the last three years of the company and the course of our careers), to know definitively that we are solving the number one challenge in marketing: How to create engaging, relevant content on a continual basis without throwing an unlimited amount of money against the problem. We also know that we have built the best product and team to solve the problem, so this year is about making sure everyone else knows those things, as well as continuing to bring top-tier service and features to our clients day-in-and-day-out.
Finally, the last note here is a gigantic thank you to all our clients, both new and old. Their support, guidance, and ideas, have really driven our product, and more broadly business, through the last few years. It’s a cliche to say that without clients you don’t have a company, but it’s also very true. So, to all of you who are reading this, thanks for all the support. We wouldn’t have made it this far without you and it’s our commitment to continue to go above and beyond expectations (surprise and delight as Kiva, our VP of Sales likes to say). Keep being awesome.
I really like this article on the closing of graffiti mecca 5 Pointz (I’m a huge graffiti fan in case you weren’t aware) and how maybe it’s not such a bad thing. It’s mostly quotes from graffiti artist/author Jay Edlin. Here’s a snippet:
The materials used in both graffiti and street art are not intended with long-term viewing in mind. Spray paint, ink, or wheat pasted paper don’t stand the test of time when living outdoors. Graffiti involves creating the work completely on the spot. The most a writer brings with him to a wall is a sketch…The adrenaline felt by kids risking their liberty shows through in the work.
Street art is more calculated and safer. Unlike graffiti art, street art can be made partially in a studio or using a printer and laptop. Street artists tend to have studios and assistants, which is unheard of for illegal graffiti artists. I don’t see that much of a difference between street art and studio art. Pasting paper on a wall illegally, or in graff’s version, putting up stickers, just seems less cutting edge or risky than the old subway writers and illegal street bombers.
Two mediums employed by writers—acid etching on glass and plexi surfaces and massive tags occupying entire building sides done with paint-filled fire extinguishers—have no studio parallel. I like that. What’s disappointing is that all the art stars who started out in conventional graffiti have sacrificed their letter forms in favor of figurative work that has a much greater commercial upside.
A few weeks ago my friend Nick sent me a link to this epic 12-part series on Dennis Rodman’s basketball prowess. While Rodman has been in the news for some interesting reasons lately, prior to that he was a basketball player unlike any we’ve ever seen and this series sets out to prove the point. I was especially part of part 2(a)(i) on “Player Valuation and Conventional Wisdom,” which has a nice explanation on the battle between the eye-test and math-test in sports:
Yet chances are he remains skeptical of the crazy-talk he hears from the so-called “statistical experts” — and there is truth to this skepticism: a typical “fan” model is extremely flexible, takes many more variables from much more diverse data into account, and ultimately employs a very powerful neural network to arrive at its conclusions. Conversely, the “advanced” models are generally rigid, naïve, over-reaching, hubristic, prove much less than their creators believe, and claim even more. Models are to academics like screenplays are to Hollywood waiters: everyone has one, everyone thinks theirs is the best, and most of them are garbage. The broad reliability of “common sense” over time has earned it the benefit of the doubt, despite its high susceptibility to bias and its abundance of easily-provable errors.
For awhile now I’ve been fascinated with the idea of serendipity. I was actually going to write a book on the topic but had to shelve it when we started Percolate. (A choice I’m very happy with, as tech industry > book industry.) Anyway, the core idea of the book was going to be that serendipity is something you can both encourage and design for. Because of that I read anything I see that talks about serendipity and was pleasantly surprised by this post on Medium by Stef Lewandowski on the subject. I’ll let you read it yourself, he hits on a lot of the things I’ve been thinking about, but wanted to share a word he introduced me to: “Zemblanity.” As he explains, “Zemblanity, a word coined by William Boyd in his book Armadillo in the 1980s, is the polar opposite of serendipity.” He goes on to quote the book for the full definition:
So what is the opposite of Serendip, a southern land of spice and warmth, lush greenery and hummingbirds, seawashed, sunbasted? Think of another world in the far north, barren, icebound, cold, a world of flint and stone. Call it Zembla. Ergo: zemblanity, the opposite of serendipity, the faculty of making unhappy, unlucky and expected discoveries by design.
I’ve definitely found myself in zemblanity at times and I usually have to read my way out. It’s nice to have a word to use in case it happens again in the future.
I wrote a reasonably in-depth post over at the Percolate blog on my thoughts on the marriage of Google+ and Android. Here’s a snippet:
As we all know, Google has very publicly announced its intention to build G+ into a massive social platform at any cost. For awhile I think many simply nodded and metaphorically patted Google on the head, as if to say, “sure Google, whatever you say.” However, as Android has continued to grow, I’ve noticed something very interesting: It seems that Google’s plan to turn G+ into a platform is to hitch its wagon to Android. With over a billion users it’s hard to argue with that strategy.
Don’t mean to go Bitcoin heavy around here, but just ran across this article about how Bitcoin is basically an API for money and found it fascinating:
Traditional money does have APIs, but they are closed. You can program the merchant API of the VISA network if you are a trusted merchant. You can send and receive FIX messages if you are a stockbroker or exchange. Regular people, however, don’t even have APIs into their bank accounts, let alone the broader economy. Bitcoin changes all that by not only offering an API for accounts (wallets) and transactions, but also making that API available to everyone.
This idea, providing an API for something that doesn’t have one, is one of the more fascinating to me and a space I expect we’ll see lots of activity over the coming years. This, more or less, is what the whole spime/internet of things/industrial internet is about: Giving things that couldn’t talk the ability to talk through APIs. Not surprisingly, I’m especially interested in what this means for brands and how they can build out their own APIs. A few years ago I wrote about Starbucks APIs and, in a lot of ways, we think about Percolate as providing a similar interface for brands by codifying it into the system and making it available to consume via API.
So I’m on a pretty good blogging role, but they’ve all been quite serious. So, to celebrate Friday, and a 5-post week, here’s an excerpt from the New Yorker’s New Year’s Resolutions for an Anteater:
That’s right, you guessed it, I’m gonna eat a shit ton more ants.
I’m gonna eat them off a tree.
I’m gonna eat them off a coconut.
I’m gonna eat them off one of those classy, slanted desks from an antiques shop.
I’m gonna eat them off a globe, off a paperweight, off a ship in a bottle.
I’m gonna eat so many ants, you would think it’s what I’ve been put on Earth to do, just Hoover up ants like the weirdest thing in the world.
It’s like God was like, “Well, I think I overdid it with the ants.” And then had the idea to send some insane, bulky creature down to take care of them. And that’s me.