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.
I never finished Taleb’s Black Swan, but I vividly remember a point from the opening chapter about what would have happened if a senator had pushed through legislation prior to September 11th to force all airlines to install locked cockpit doors. That person would have never recieved attention or recognition for preventing an attack, since we never would have known:
The person who imposed locks on cockpit doors gets no statuses in public squares, not so much as a quick mention of his contribution in his obituary. “Joe Smith, who helped avoid the disaster of 9/11, died of complications of liver disease.” Seeing how superfluous his measure was, and how it squandered resources, the public, with great help from airline pilots, might well boot him out of office . . .
I was reminded of this as I was reading Tim Harford’s Adapt and this point about how we interpreted the US domination of the first Gulf War:
Another example of history’s uncertain guidance came from the first Gulf War in 1990–1. Desert Storm was an overwhelming defeat for Saddam Hussein’s army: one day it was one of the largest armies in the world; four days later, it wasn’t even the largest army in Iraq. Most American military strategists saw this as a vindication of their main strategic pillars: a technology-driven war with lots of air support and above all, overwhelming force. In reality it was a sign that change was coming: the victory was so crushing that no foe would ever use open battlefield tactics against the US Army again. Was this really so obvious in advance?
While I don’t agree with Paul Krugman’s Bitcoin is Evil post from the weekend, his next post on Bitcoin did include this nugget I had never considered:
It occurs to me that part of the disconnect is that Bitcoin solved a major technical problem, one that people had been thinking about for about 20 years, and we nerds just can’t believe that it doesn’t also solve an economic problem. The technical problem is double spending–if I have some digital money, it’s easy enough to verify cryptographically that it’s real, but if I give it to you, how can you tell that I haven’t also given it to someone else? Until Bitcoin, the answer was to have a bank that knew which coins were valid, so you’d present my coin to the bank, which would check its database and if it’s valid, cancel it and give you a new one. Bitcoin has its decentralized blockchain which is a very clever recasting of the problem so that the state of the “bank” is whatever the majority of bitcoin miners agree that it is. Getting enough of the miners to agree is known as the Byzantine Generals problem, and has a technical history of its own.
As simple as it seems, splitting out the technical achievement from the economic one is a really interesting way to think about it. I haven’t really spent enough time thinking about Bitcoin to have a strong opinion about it specifically, but I do think the idea of a crypto-currency not attached to a specific nation is something bound to happen. In a way, I feel like Bitcoin and Google Glass have a lot in common: Early experiments in form and style that signal what’s to come.
A few weeks ago I saw Malcolm Gladwell speak at an American Express OPEN event about entrepreneurship and his new book, David & Goliath. As part of the talk he mentioned while entrepreneurs are often viewed as financial risk takers, their greatest skill is often their ability to take social risks. Here’s BusinessWeek describing an article of his from 2010 (the full New Yorker article is behind the subscription wall):
While entrepreneurs want to minimize their financial risk, they’re often more willing to take social risks. During the housing bubble, people thought Paulson was crazy — including the people on the other side of his trades. Sam Walton, another of Gladwell’s examples, borrowed money from his in-laws rather than go to a bank. The willingness to risk reputation and social standing is “just another manifestation of their relentlessly rational pursuit of the sure thing,” he writes.
Anyway, I was reminded of the idea while reading this short piece about some research on the effect of informality on power. Essentially we see non-conformity as a sign of status:
Silvia Bellezza, a doctoral candidate at Harvard Business School, and Francesca Gino and Anat Keinan, two professors there, first studied the link between accomplishment and informality. They found that scholars who dressed down at an academic conference, eschewing blazers for T-shirts, had stronger research records, even controlling for age and gender.
Of course this kind of goes against Gladwell’s point, which suggests that the hardest part is the non-conformity … So not sure what it proves. But it’s interesting.
Just posted something new over at the Percolate blog that I thought might be worth sharing here. It’s my four tips for building community based on what I’ve learned from this blog (a community I’ve let lapse) and likemind. I’ll let you read the whole thing over there, but here’s point number 2, respond to everything and everyone:
This is something I (used) to do on my blog and with likemind and believe it had a huge impact. Real communities need to feel connection and your job is to be at the center of that. To make that happen everyone needs to believe there’s a real person on the other end. For likemind that meant emailing back every single person who signed up for the mailing list anywhere in the world. This started lots of conversations and generally let people know this wasn’t just another networking event.