• On GameSpot: Nintendo's Shigeru Miyamoto speaks out

Matter/Anti-Matter

July 4, 2009 12:31 PM PDT
(Credit: Werkmann)
Modernista did it. Skittles did it. And now the world’s hottest advertising firm, Crispin Porter + Bogusky (CPB), has done it, too: the NY outfit has re-launched its corporate web site as a conversational social hub that curates what is being said about CPB rather than staging what CPB has to say. Some may scoff at this move and denigrate it as “sooooo six months ago,” but I agree with Paul Isakson when he heralds the influence of the new CPB site on the rest of the industry as potentially paradigm-shifting.

The demarcation line here runs between pioneer and early adopter: CPG is the latter, no doubt, and while there’s nothing really innovative about the new site, it is nonetheless still radical relative to the vast majority of corporate web sites out there. Bringing CPB’s client portfolio to life by marrying the Kantian “You are what you do” with the Twitterian “You are what they say about you,” it certainly sets a new standard for the online presentation of creative industry brands. And – the proof is in the pudding – it accomplishes the ultimate goal of any conversational site: it is the talk of the town (or at least that of Madison Avenue).

However, as I was browsing through the plethora of content on the new (beta) CPB.com, an unsettling feeling came over me. It occurred to me that the trend of conversational corporate web sites going mainstream might trigger an unexpected, inadvertent effect. With brands turning into curators of conversations about them and brand value increasingly determined by the value of aggregated content, third parties might be inspired to hijack these very brands by offering curated conversations on their behalf.

Similar to Google’s profiting from original content on the backs of original publishers, brand-specific aggregators could benefit from being parasites of original brands’ social universe. In other words, what if Skittles faced unexpected competition from a third-party site that provided a much more comprehensive and easier-to-access curation of Skittles conversations than Skittles.com itself? Or if McDonalds suddenly saw itself confronted with a site aggregating blogs, videos, news, and tweets, all about but not by McDonalds? Think of this as the logical extension of the company profiles that already exist on LinkedIn and XING, which aggregate individual member data into a fairly transparent view of companies, including employee information and recent news. Indeed, third-party brand curators might realize that brands live in the ‘social commons,’ and that whoever builds the right aggregation mechanism and establishes the most popular channels to reach a mass audience will “own” the branded conversation on the web.

This scenario will hardly be a conflict that brands can legally solve, and it may therefore present a troubling blind spot in the social media ecosystem. Sure, brands can claim their corporate URLs and even their Facebook profiles (not always their Twitter feeds, as you can see exemplified by http:/twitter.com/ted – “I got it first, I win.”). Aggregators, however, operate in social web’s no man’s land, in indisputable territory.

Brand value, extremely volatile anyway, would then become completely unmanageable for the original brand owner. The very transcendence that is emblematic of powerful brands, may become their curse: brand loyalty is not so much loyalty towards a certain company; rather it is – as the name implies – loyalty towards a brand, wherever it lives and however it appears, both of which not limited to the confines of the official representation on the brand owner’s properties. It is the conundrum of successful brand builders that the bigger their brand becomes, the more likely their risk that they lose it to the social commons. Skittles and CPB have recognized that the main threat for their brands is not coming from competitors at the center of their industry but from outliers at the fringes –and they have preempted it, at least so far. My advice for all the others, the late adopters: Take action quickly and launch your own branded aggregation portals before third parties beat you to the punch!

While third-parties might try to benefit from curating branded conversations, Twitter produces the reverse trend as well: brands acting as parasites of existing third-party conversations. UK furniture retailer Habitat had to apologize for referencing the popular hashtag #iranelection in its Twitter feeds. (Over)-eager to drive eyeballs to its feed, it had committed the ultimate sin of social brands: it had stolen a collective currency that no one brand could possibly own.

Another scenario is brands initiating Twitter conversations that are essentially solipsistic. Web-site building company Moonfruit conducted a campiagn offering10 free MacBook Pros as prizes randomly awarded to Twitterers who would use the hashtag #moonfruit. The result: #moonfruit became a trending topic, attracting 400 tweets a minute, more than 10,000 times per hour, and 200,000 per day. Moonfruit’s Twitter followers rose to 23,000, and according to a Moonfruit spokesperson, visits to its site were up 600% on day two of the campaign. Some bemoan it as a "tragedy of the commons" or caution that "unless the Twitterverse wises up, we'll end up getting deluged with hashtag spam." I'm not so worried. The different responses to Habitat's and Moonfruit's campaign show that the Twitterverse can self-regulate attention-hijacking attempts and tell the cool from the not-so-cool. Let Twitter do what Twitter can do. All is fair in the conversation wars.

July 3, 2009 10:33 AM PDT
(Credit: Jossey-Bass)
Forgive this self-serving plug but I think this is worth sharing: My colleague, Frog Design founder and former CEO, Hartmut Esslinger, has written his first book, and it is available in stores now: A Fine Line - How Design Strategies Are Shaping the Future of Business. Part autobiography, part how-to innovation guide, part outlook to the future of design, A Fine Line is "a must-read for designers and business people alike" (Satjiv Chahil, senior vice president, Hewlett-Packard).

A Fine Line offers a step-by-step overview of the innovation process -- from targeting goals to shepherding new products and services to the marketplace -- in order to reveal how to arrive at an authentic human design that connects strongly with consumers. With a unique perspective, rich stories, and a global mindset, Hartmut Esslinger explores business solutions that are environmentally sustainable and contribute to an enduring global economy.

Michael Moritz from Sequoia Capital, in his foreword, said it all: "Hartmut's book contains the ruminations of a man who has devoted his life to the challenge of marrying the aesthetic with the functional while standing firm against the deadening forces of mediocrity. His work shows that taste can triumph, design and production can be soul-mates, and the eye of an individual can shape a product and a company. The idea that finely designed products can change the fate of companies while also becoming our indispensable companions is a message that millions of us owe to Hartmut."

You can find the table of contents, sample chapters, testimonials, and videos on http://www.afinelinebook.com

And here are some excerpts from a video interview with Hartmut:


June 28, 2009 12:41 PM PDT

Several blog posts this week, combined, pinpoint what are arguably the two most influential trajectories for the impact of communication technologies on business these days: from real-time web to real-time business, and from social media to social business design.

Let’s start with the former. Referring to Salesforce.com founder and CEO Marc Benioff and his presentation at the Structure 09 conference in San Francisco last week, DigitalBeat claims that the real-time web is not only shaping the future of all computing but also that of business overall: “In business it’s real-time or it’s no time.” It goes on by quoting Benioff: “Customers (…) expect everything to happen right away— if they update their data, they expect those changes to appear immediately, not an hour or two in the future. (…) Any concept of batch or delay in development or execution, I think, will not be tolerated by customers anymore. (…) Even in development, customers are demanding now that they want to be able to build in that sandbox and deploy immediately, instantly, no delay.”

Sure, you may say, customers always want it faster and cheaper, that’s not news. But the implications Benioff talks about are more profound and affect the way organizations operate and adapt their business models to the new and ever-changing demands of immediacy. Some examples: Zara, the Spanish clothing chain, uses customer feedback to develop new clothes, in near real-time. TCHO, the San Francisco-based chocolatier, relies on continuous flavor development and customer feedback to drive constantly evolving versions of its dark chocolate, with variations emerging as often as every 36 hours. Status updates, embedded news feeds, and Twitter apps have injected some “real-time-ism” into professional online social networks such as LinkedIn and XING, converting them from address books to conversational circles, from networking forums to collaboration platforms. Zappos, the online retailer, successfully combines real-time customer service on Twitter with near-real-time delivery – having established a powerful, dynamic brand before letting its customers decide what business it was actually in. And Skittles, the candy brand, ingeniously replaced its corporate homepage with the 'Interweb,' a collage of real-time social web conversations not by but about Skittles – essentially recreating itself as the first ever real-time brand. All these models show that the news industry’s big conundrum applies to every other business, too: It used to be that there’s nothing more boring that yesterday’s newspaper. Now there’s nothing more boring than today’s. When you relaunch your business model, product, brand identity, web site – it’s already too late. Real-time beats planning to the punch.

Real-time businesses therefore must get rid of long-term strategy plans, product road maps, goals and objectives, and all the other superfluous documents that distract organizations from focusing on their true mission – the here and now. Most of these documents are inward anyway and can be easily replaced with one strong and permanent mission statement (which, if your company culture is intact, does not even need to be verbalized).

Real-time business is inherently social – there is no real-time without social. The more businesses open up their organizations and invite external voices into their inner sanctum, the more real-time they will become. Getting social will help companies gather customer intelligence in real-time and use it to move faster. In the future, real-time businesses may deliver before their customers even articulate their needs. And they will provide immediate value without immediate return, in other words they will over-deliver – free for now but with a material or immaterial return later. What is the inadvertent business model for media might be a fulcrum for companies that manage to achieve a brand premium through customer participation as a part of real-time product development: “building a plane in the air,” together with their customers.

"The process is the product,” as Trendwatching writes in its latest report, in which it also claims that the real-time the web is breeding a new quest for longevity or “Foreverism”: “the new popularity of technology that allows consumers to find, follow, interact and collaborate forever with anyone & anything.” It’s not as paradoxical as it may sound. Living real-time means living in the ongoing – forever. If everything happens in real-time, nothing is ever final and always in permanent beta. Conversely, if everything lasts forever on the Google web (your emails, networks, conversations) and your digital presence is only as good as your latest search results and Twitter updates, you better utter some digital impressions NOW.

And yet, what’s required is a shift in thinking and ultimately a new organizational model that goes beyond feeding the social media beast on the real-time web: “If the big picture is business transformation, it's going to take more than a few tweets to get there,” David Armano writes in his post on ‘social business design,’ and argues that ““Social Businesses are those which are designed from top to bottom as a reflection of the world we all live in online today. A business where everyone is connected and able to contribute but also where the right tools are available to them to do all of this with business intent from the beginning.”

For centuries, organizations have considered it their task to conquer chaos and manage people, now they have to embrace the sudden chaos instigated by unmanageable throngs of instantly and elegantly self-organized individuals. Whether that will lead to the end of organizations remains to be seen; it will definitely lead to the end of organizations as we know them.

June 21, 2009 11:20 AM PDT
(Credit: Unicef)

The $10 billion market for baby and young children’s furnishings (cribs, other case goods, layette, nursery decor, and the like) and accessories (car seats, strollers, baby monitors, diaper bags, etc.) is a lucrative market, and the baby stroller is one of its most competitive sectors. Hundreds of models vie for the attention of parents-to-be, and the level of detailed research, due diligence, and individual preferences may come close to the decision making process by an airline for the purchase of a Boeing 787. There are only few things – at least that’s what the industry makes you believe – that are as personal and intimately important to consumers as a baby stroller. The stroller embodies the commitment, care, and love that a couple chooses to devote to their newborn. It is the most visible representation of good parenthood. And in the US, the baby stroller market combines three quintessential American traits into a mind-boggling mix of over-commercialism: an abundance of choices, an obsession about mobility, driving, and vehicles, and a profoundly whacked out paranoia about deficient baby care. All that turns the stroller into a status symbol, especially after the chic Bugaboo arrived on the scene (thanks to Sex and the City) and became the must-have stroller for every DINK (double income-no kids), oops, with kids now – from Los Angeles to New York.

All the more rewarding then is to see a baby and kids super store that defies this irrational exuberance by taking it even a step further, turning a farce into a comedy. Lullaby Lane in San Bruno, CA is a paradise for stroller shoppers precisely because it doesn’t try to be one. It runs three stores and a warehouse in the suburban town south of San Francisco, and surprisingly, the town isn’t named after the brand yet - as perhaps one of the biggest non-big-box baby gear suppliers in the world. The town of San Bruno is adjacent to the San Francisco International Airport (the noise of planes taking off may disrupt your shopping experience at Lullaby Lane every other minute, but my wife used it as an extra lever to lure me into the shop – “if you get bored, you can watch planes.” I love watching planes almost as much as I hate shopping).

But bored I was not. Lullaby Lane is a one-of-a-kind store, independent, grassroots, not slick and shiny – but having been in business for 57 years and family-run, it is the anti-Babies R Us. Almost like a garage sale with sales reps that are a charming mix of car mechanic, Formula One engineer, and precocious kindergartener. Adhering to an old-fashioned model of super-personal customer service, they master folding and unfolding hundreds of different strollers, and go to great lengths to thoroughly analyze each and every feature of the many brands of strollers that they carry – including a live comparison of the performance of the inflatable wheels of the Bugaboo Frog versus the non-inflatable wheels of the Uppa Baby Vista (the Bugaboo is the clear winner). The best thing about Lullaby Lane, however, is its product reviews on YouTube, enhanced by a delightfully ill-placed soundtrack (AC/DC’s “Hell’s Bells”) and astonishing, unexpected outbreaks of stroller stunts. You have to see them yourself; here's one example:

The videos are smart. They’re rough, low-budget, authentic, fun, and laden with just enough irony so they don’t turn off hardcore parents-to-be but also cater to the more enlightened shoppers who (wrongly) think that they aren’t succumbing to the baby industrial complex. The videos feature men and are designed to appeal to men, highlighting the strollers’ features and the competitive nature of their performance. You feel like they’re selling you a sports car. Once you’re in the store, however, the sales reps pay closer attention to the mothers-to-be, knowing they will ultimately make the purchasing decision. Even though I was the one asking more questions, our sales rep would always face my wife when answering them. When we left the store, we had bought two strollers (I learned that you need one for home and a lighter one for travel), and we swore we’d come back. There’s always more you need for your baby. Yes, we care. And then we watched planes.

By the way, you may think the Lullaby Lane videos are edgy, but they pale in comparison to the guerrilla marketing campaign conducted by UNICEF in Finland. Wanting to raise awareness for children rights, the “Be a Mom for a Moment” campaign placed fake blue strollers with a crying baby audio track in crowded places in 14 cities. If people looked in the strollers, they would find a note with the message: “Thank you for caring, we hope there are more people like you. UNICEF – Be a mom for a moment.” Apparently, the media and public reaction was overwhelming, with coverage in all the major TV, radio and web news. The estimated media reach was more than 80% of Finnish population after two days.

Lullaby Lane and UNICEF’s campaign share a commitment to meaningful marketing. They successfully connect with their audiences by applying what I call the "five principles of meaningful marketing (pdf):” be social, be personal, be dramatic, be disruptive, and be responsible. Lullaby Lane embraces the idea of generosity (“give more than you take”) and originality (the videos) to create long-term customer loyalty, and UNICEF’s campaign was a perfectly choreographed moment of “disruptive realism.” Both create meaning – events and experiences that you can relate to other events and experiences and that are at the same time so scarce and unexpected that they’re worth sharing.

Happy Father's Day!

(photo credit: UNICEF)

June 15, 2009 9:59 PM PDT
(Credit: Multileveler)

Looking at the many positive responses it received, Pico Iyer’s recent NY Times blog post on "The Joy of Less" appears to have struck a chord:

"But at some point, I decided that, for me at least, happiness arose out of all I didn’t want or need, not all I did. And it seemed quite useful to take a clear, hard look at what really led to peace of mind or absorption (the closest I’ve come to understanding happiness). Not having a car gives me volumes not to think or worry about, and makes walks around the neighborhood a daily adventure. Lacking a cell phone and high-speed Internet, I have time to play ping-pong every evening, to write long letters to old friends and to go shopping for my sweetheart (or to track down old baubles for two kids who are now out in the world)."

I take Iyer’s account as further anecdotal proof of my thesis that we are moving towards a new era of post-materialism, in which the quest for meaning, simply put: collective action for the common good, social impact, sustainability, enlightenment, values, etc., trumps purebred material satisfaction derived from the accumulation of things. If ownership, the tyranny of more, means slavery to objects, the less is ephemeral and offers an infinite number of possibilities.

However, I disagree with Iyer on the role of media stimuli. I tend to have a more optimistic view and believe that Twitter, as the modern, accelerated Haiku, can indeed provide you with that “joy of less” that Iyer describes. To counter Iyer with the very Hamlet citation he uses in his text: “There is nothing either good or bad, but thinking makes it so.” What if Twitter is the impulse purchase of the enlightened digital citizen? What if it has shifted the need for instant gratification from a purely materialistic to a more intellectual realm? On Twitter, the only thing you can truly own is your account; everything else, even your followers, are ever-changing and highly volatile. Needless to say that tweets come and go as much as anything can come and go, and that Twitter doesn’t have a memory, so that all lives on it are limited to the here and now. That’s quite a moment of Zen. And yet, paradoxically, while ‘less is more’ certainly applies to its tweet format, the true attraction of Twitter lies in a ‘more is more’ network effect. The more people join, the more valuable the social conversation becomes.

This weekend, in the aftermath of the Iranian election, Twitter’s ability to build a mass audience by virally connecting myriad micro-audiences through micro-messages has proven again to have real impact. When the Iranian police started cracking down on protesters, CNN chose to air a repeat of Larry King’s interview with the stars of the American Chopper show, which drove the Twittersphere berserk. Other news networks, too, failed to properly cover the dramatic events that unfolded in Iran, but CNN was an easy target because it is so iconic. While the world was tweeting, the ‘most trusted source in news’ misjudged the situation and failed to turn history in the making into a story. In fact, it completely missed the beat and responded somewhat defensively to Twitterers’ accusations:

(Credit: CNN)

The anger at CNN may have been collateral damage of Twitterers’ frustration due to having only limited impact over the events in Iran. But the effect was impressive: Within a couple of hours, #cnnfail became one of the top trending topics on Twitter, CNN was faced with a major image backlash, and you could follow the development live on Twitter. Twitter effectively acted as “media watchdog,” as Mashable commented. Citizen journalism outperformed professional journalism -- in real-time. When Ahmadinejad shut down all mobile services and social networks, only a few Iranian Twitterers, with just the trusted authority of a genuine voice, were able to stay connected to the rest of the world and report on the frightening events in Iran. Synchronicity, real-time reporting, should have been CNN’s bastion but it didn’t get any of this. Twitter did.

The parallels are striking: The tentative revolution in Iran coincided with a revolution in the American living room. The protests against the Iran regime corresponded with protests against old school gatekeeper media. The social media grassroots campaign against traditional media became a mainstream media story itself. It will be interesting to see if CNN realizes the other startling parallel, the elephant in the room: Both Iran and CNN have cracks in the wall. The days of the old models are numbered. The revolution will happen but it won’t be televised.

The other key take-away from this media weekend is that on Twitter the main story was not the story. The main story is never the story. Twitter is the mainstream for alternative streams. This is why Twitterfall, which displays tweets grouped by trending topics as a top-down waterfall, is the congenial visualization, the most effective user interface for Twitter. Twitterfall expresses the escalation that is an inherent part of Twitter. On Saturday night, #iranelection and #cnnfail tweets broke down in staccato-pace, many tweets per second. It was hard to take your eyes off; it was too easy, too tempting to stand still amidst the constant motion.

Events are synchronous, multi-dimensional, multi-layered, and social, and so must be news. What if the future of news was Google Wave, as Jeff Jarvis suggests, or other "email cum wikis cum Twitter cum groupware"? “Imagine a team of reporters - together with witnesses on the scene - able to contribute photos and news to the same Wave (formerly known as a story or a page). One can write up what is known; a witness can add facts from the scene and photos; an editor or reader can ask questions. And it is all contained under a single address - a permalink for the story - that is constantly updated from a collaborative team.”

Or is there a news model based on a horizontal comparison of real-time and filtered search (Twitter vs. Google), a la Twoquick? In either case, the aggregators will win (or have already won). The only model that would keep mainstream media in the game would be to combine vertical motion (Twitterfall) with contextual content that is carefully curated: immediacy AND accuracy, intimacy AND authority. Mashable gets it right when it interprets this weekend’s events as an opportunity rather than a swan song for traditional media: “While social media sites are both a source of unfiltered information and a venue for public discussion, we still look to CNN, the BBC and their ilk to add context and meaning to this flood of data. And when they fail us, we demand more of them.“

June 11, 2009 1:55 PM PDT

The NYT’s Bits Blog spells out how the pricing for the iPhone basically turns it into a subscription, at least for people who want to upgrade their phone regularly. With the new prices and GS model announced Monday, there are now three tiers, as described by Bits:

  • The $199-every-two-years plan. That gives you the base model of the most current phone hardware every two years. You have to suffer a year of jealousy when others have the newest phone and you don’t. There is a similar $299-every-two-years plan for the higher capacity phone.
  • The $399-every-year plan (with an introductory rate of $199 the first year only). For four times the effective annual cost, you get the base model as soon as it comes out. Premium users may gravitate to the $499-a-year plan ($299 to start out) to be sure of having the very best model.
  • The new $99-every-two-years plan, if you want to have last year’s model and keep it for two years. As I wrote Monday, this may go down to a $0-every-two-years plan next year.

Given that the average consumer gets a new cellphone every 18 months, this isn’t really different from what’s been going on for years, it’s just that the price-point is far higher. But it’s not out of line for other smartphones, and if anything Apple has been pushing prices down in the category — for launch prices at least. BlackBerry and Palm both had to launch the Storm and Pre, respectively, at the $200 pricepoint, or they wouldn’t stand a chance against the iPhone.

The difference is that in the past launch prices quickly dropped, sometimes to free, whereas Apple keeps them consistent throughout the life of a product generation. So while it puts pressure on competitors for their launch prices, it also opens the door for them to drop their prices over time, perhaps significantly undercutting the iPhone.

And for the record, I sympathize with a commenter on the Bits Blog post that it’s unfortunate that so many see resource-intensive products like cellphones as disposable on such a frequent basis. Granted, they get beat up a lot being handheld and portable, but upgrading is by far the most common reason. I have to plead guilty as charged here too, though I generally hang on to a phone for more like 3 years (my Sony Ericsson has a cracked screen, but otherwise I still use it).]

June 7, 2009 10:44 PM PDT

(Credit: Element 22)

There seem to be three (non-mutually exclusive) models for marketers tasked with building brand equity: marketing scarcity, marketing artificial scarcity, or marketing relevance.

Scarcity seems to be at the core of all marketing: an exclusive, unique value that can be reproduced; an original idea replicated for many. That's how markets work, how marketing works. Branding is effective when it keeps the aura of an original idea intact despite its mechanical reproduction. Apple's original idea, for instance, could be described as "technology must be fun and human," and it has not lost an inch of its integrity. That's the trait of a strong brand: the idea remains scarce while its distribution becomes abundant. The scarcity of all branded, manufactured products is of course artificial. If it wasn't, these products wouldn't need to be branded. That's the whole point (and the difference between water and bottled water.)

Some brands have taken this concept a step further by creating a special type of artificial scarcity: "democratic exclusivity." Sounds paradoxical? Well, it is. But it works. Gmail has pioneered it: An (exclusive) invitation-only service that pretty much everyone can get invited to (democratic). As another example, take Apple's strategy with the iPhone app store. It is a closed system (exclusive) but principally open for third parties (democratic). Look at the Kindle that Amazon purportedly shares as an app for other mobile devices. It shows that it's certainly good to have recognizable hardware (exclusive) but the true value lies in the software that you own and that you can use to extend the reach of your brand (democratic). Or Radiohead's pay-as-you-like release of "In Rainbows": Buyers could determine the price (democratic) but the offer only stood for a limited period of time (exclusive). The album - online and physical distribution combined - sold more than Radiohead's previous releases, and the radically democratic way of pricing created a significant amount of brand equity for the band. Democratic exclusivity at its best: artificial scarcity in abundance.

The third and perhaps most game-changing model for marketers is selling relevance rather than scarcity. Jeff Jarvis points to Digg's new advertising system that enables users to vote on ads. Techcrunch calls it a "self service advertising product" that is "somewhat similar to Google Adwords, but with a twist." The twist is essentially a reversal of the traditional advertising paradigm: The most popular ads, as voted on by Digg users, will get more prominent placement and a lower cost-per-click. In other words: The more users digg an ad, the less the advertiser pays. "The Digg system rests on a Cluetrainy need to deliver authentic value and relevance - like Google's ads," Jarvis notes, and he argues "that's the way advertising probably needs to go: The better your relationship (which springs from a better product and service), the more your customers will market it for you, the less you'll have to pay to market it." Jarvis is right: "The future of advertising needs to be selling - that is, enabling - relevance instead of selling scarce space, time, or eyeballs. The future needs to be about adding value - relevance - rather than selling scarcity (extracting what the market will bear)."

Equity is the accumulation, the repeated occurrence, of actions, interactions, and transactions that add value. The best way, then, to build brand equity is to repeatedly and consistently add value through all your interactions with customers. Advertising doesn't add value; branded content does (information). Promotions don't add value; branded entertainment does (entertainment). When you brand something, you don't just market scarcity and advertise your products and services, you market your ability to add value that is relevant.

The web, and the social web in particular, reconciles artificial scarcity with relevance, and that's why more and more branding dollars are moving online. It is the ideal forum for creating an abundance of scarce moments, thousands of small great ideas instead of one great big one. These small great ideas come to live in brief moments of attachment with customers that are personalized and truly relevant for them.

"Advertising is failure," says Jeff Jarvis, and he thinks "media only get in the way of customer relationships." And indeed, how will you make more friends at a party? Showing up with a big banner around your neck that says "I am a great friend" or engaging in a handful of conversations with strangers, listening to their stories and detecting affinities whilst accomplishing a sense of privacy that gradually becomes intimate? Right. In the end, that's what we should be doing as marketers to build real, sustainable brand equity - creating publicity through intimacy, loyalty through decency.

June 3, 2009 12:10 PM PDT
Bing front page

Microsoft's new search engine, Bing, is the first real competitor to Google.

I rarely use Google. Or rather, I rarely use Google.com. Because Google is embedded into Safari, I just use the search box there, which creates huge stickiness that's hard to displace. Of course, Microsoft has the same option now for embedding Bing into Internet Explorer, assuming it's allowed to by the courts. But the very short amount of time I've spent with Bing has me rethinking my search engine options seriously for the first time.

I know a lot of people gush about Google's user experience, and certainly there are a lot of nice things about using it: speed, accuracy of results, and things like weather, which give instant contextual results. But from an aesthetic point of view I've found its minimalism to be on the drab side, rather than the chic side. It's utilitarian, not fancy, and mostly not that fun.

Bing has had the courage to say "to hell with eking out the last millisecond of page load time," which both Google and, historically, Yahoo have always emphasized. In today's world, and moving forward, it's just not that important (mobile being an exception, but for that you can provide a custom experience).

Rafe Needleman at CNET Webware and Katherine Boehret at WSJ both have good write-ups on the niceties of Bing, so I won't repeat them here. It does some things differently than Google, breaking some ingrained habits, and while there isn't much that's significantly worse, there is quite a bit that is considerably better. The results that come back are somewhat different, sometimes more on target, sometimes not. I'd say the jury's out on that, especially since this is a just-launched service (assuming it's not just a reskin of Live, I don't know what's under the hood), and assuming it will improve as users contribute with clicks. (Like Google, it lists this blog as the top search when I self-search, so that's a plus.)

It presents the search results in a nicer way than Google, especially image search (multisize thumbnails and grids, different choices of detail, filters by image size, colors, etc., and overall a presentation that focuses on the images themselves). I love how sounds and videos are embedded into search results and how there's a mouse-over for a small preview. Hovering over the right edge of a search result description pulls up more information without having to click through to the page.

I like that the front cover photo changes each day and how you can float over it to find the hidden Easter eggs that lead you on unexpected paths (one is shown popped up in the bottom right of the above image). Ask.com tried the splash-image approach but that was more of a skin, but Bing's approach is more engaging and encourages you to actually visit the front page, rather than bypass it as quickly as possible to get to the results.

Bing avoids two traps: One, it doesn't just try to ape Google. Two, Microsoft hasn't overstyled it and thrown in the kitchen sink of aesthetics and functionality. There is clearly an editorial hand at work that hasn't allowed it to get focus-grouped to death. Kudos to Microsoft for that.

I'm going to drop Bing into my toolbar bookmarks and give it a whirl for a while. Who knows, maybe it will be enough to displace the 800-pound gorilla.

June 2, 2009 4:50 PM PDT
By Nick de la Mare

I saw an interesting article in the New York Times this weekend titled "Put Ad on Web. Count Clicks. Revise." The premise of the article goes something like this: because the web provides functionality to test every variation of a banner ad for effectiveness, the next big thing is tailoring advertising in the moment, and leveraging findings from click-thru rates to construct more relevant offerings for consumers.

If I had to construct a tag-line for the so-called "data practice" services cited in this article it would be "downstream solutions to upstream problems." From the media-buying perspective I understand the argument: if the chosen vehicle for the ad is wrong, the advertiser will recognize it faster and will be able to adapt on the fly. Quick changes in placement and timing make ads more effective at targeting particular populations. But from the standpoint of advertisers and brands trying to understand the consumers they serve, this service misses the boat.

Coming from a research-heavy design consultancy, I believe this effort represents not a huge step forward but a band-aid placed over a much larger issue. Ad agencies and the companies that hire them should be doing a much better job understanding their consumers before they ever put their banner ads out there.

The article cites a Vespa campaign of 27 web-based ads, with variations in messaging ranging from "Pure fun. And function" to "Smart looks. Smarter purchase." The second message, combined with a no money down, zero-percent interest offer, attracted 71% more responses than the average of other Vespa ads. The two underlying value propositions ("Vespa, all about the fun" vs. "Vespa, it's a prudent financial decision") represent wildly different core assumptions about the product and its users.

It seems like a no-brainer to assume that doing a little research before designing the ads, speaking to customers and employees in-store, conducting contextual inquiries into existing owners and trend-scrapes tracking the rise of couponing and price consciousness, would yield the same results as the results of click-thru rates, as well as revealing additional deeper data that could be leveraged to fill out the campaign and adapt the product offering itself.

I'm not saying that tracking click-thrus isn't sensible and smart; it's just reactive. Only after you put something out there can you judge the validity of your messaging and when you do, your tool for judging that response is relatively blunt and binary (and the product, if off-base, is fundamentally unchanged).

By taking a proactive approach instead—i.e. talking to people and testing your assumptions before ever constructing an ad, and then altering the product to more closely align it to your findings—allows you to build your offering holistically. Now your banners reflect your product, and vice-versa, and there will likely be less need to retrofit the argument around a leap of faith.

The rise of data practices in digital advertising appears to be more of an effort to retain relevancy on the part of the agencies than something that fundamentally creates value for the consumer. And calling it new is a bit of a misrepresentation. Many of the old lessons of direct marketing are simply being ported over to the web by advertisers. Like the good-old days of 800-numbers and rebate codes, I'm sure it'll be successful. But calling it a "radical new approach" may be an overstatement.

May 26, 2009 11:39 PM PDT

I’m nervous, seriously nervous. In a few hours, in the Olympic stadium in Rome, FC Barcelona (or “Barca,” as its supporters call it) will face Manchester United, the other soccer superpower, in the game of all games, the final of the UEFA Champions League, the most important club competition in Europe (and the world, for that matter). Both teams have already won two trophies this season (their national leagues and national cups, respectively), and a victory in Rome would see either one clinch the “treble.” For Barca, it would be a historic accomplishment–no other Spanish soccer team has ever won all three possible titles in one season. That’s not the only superlative in the lead-up to the game: Messi, Eto'o, and Henry–Barca’s offensive trio–have scored more goals together this year than the entire squad of any other European club.

I’ll be watching the game at a resort near Santa Barbara, and it’ll be the end of journey for me, in many ways: I have been following Barca’s triumphant season leading to today’s final  in different cities all over the world on TV. I saw the team struggle against Lyon in an earlier round in a packed sports bar in Amsterdam; I bit my nails in a smelly pub in Austin when Barca remained goalless in the home tie against Chelsea; I took a day off from work in San Francisco to enjoy them trashing Bayern Munich 4-1; I was in Barcelona in a bar without any Euros but a kind bartender (the comfort of strangers) who even accepted a few lousy dollars for a beer that helped me make it through a dramatic away game; I followed games on the Internet live-ticker in Sonoma County in lack of TV; and I celebrated euphorically the decisive 1-1 goal in Chelsea in the semi-final with my best friend in Hamburg. After all these memorable moments, I realize that I am emotionally exhausted. There’s just enough sentiment left for today’s game. I will use it to cheer Barca to victory.

So I am a Barca fan, but you may wonder why in the world would an otherwise level-headed (I hope) German professional, living in San Francisco, be so crazy about a Catalan soccer team? Joan Laporta, FC Barcelona’s president, asked me exactly that question (more diplomatically phrased) when I met him briefly two years ago at an event at Stanford University, and I uttered something like “because Barca is more than a club.” I felt stupid and exposed as succumbing to the marketing formula the club had promoted for years: “Mes que un club.” But then I thought of that one remarkable moment in Bill Maher’s documentary “Religulous” in which he tries to make fun of the actor who plays Jesus in a Christian theme park in Florida. Not a difficult task, it seems, until that very actor asks him back, with great sincerity and earnestness: “So you think this is all made up and crazy talk. I get it. But what if you're wrong?” There’s a short pause, and Maher, the cynic, has just been disarmed. That’s exactly how I feel about my passion for Barca. Not that Barca is like a religion to me, but it is a matter of faith. It is something to believe in–the why doesn’t matter.

And yet, I could cite very good reasons for why Barca ought to be the favorite club of anyone who loves the “beautiful game.” In fact, Albert Schweitzer must have had Barca in mind when he coined his famous aphorism: “Do something wonderful, people may imitate it.” Much has been written about Barca’s aesthical  play and its underlying philosophy. Barca’s style is a showcase of sparkling creativity, but what one must not overlook is the enormous tactical discipline and the intelligent organization that serve as the platform for the magic moments of Messi, Eto’o, Henry et al. The Barca superstars wouldn’t be able to shine without the works of Xavi, Iniesta, and Toure in midfield, and what pundits have rightly dubbed an “efficient ballet” is a collective movement of great fluidity and elegance, and a unique series of human-ball, human-human interactions that are a true pleasure to watch. One must also credit the incredible discipline that coach and former Barca player Pep Guardiola has introduced to the club this year. When a few players showed up one(!) minute late to a training session last week after winning the Spanish cup the night before, Guardiola reprimanded them and fined them – a symbolic act, of course, but one that reinforced the high standards of professionalism.

One of the other key elements of Barca’s supremacy is anticipation – the ability to predict the opponents’ moves and be just one crucial tick faster than them. This ability is based on the philosophy of “Total Football” that the Dutchmen Johann Cruyff and Luis van Gaal brought to Barcelona, and that Barca still cherishes. Total Football requires every player on the pitch to master any position at any time and to “read” the whole game from any angle. In this fluid system no player is fixed in their intended outfield role; anyone can be successively an attacker, a midfielder, and a defender. Total Football depends largely on the adaptability of each footballer within the team to succeed.

Barcelona embodies Total Football and is yet so much more than just football. To learn more about the genuine element of drama that no other club embraces in the way Barca does, I recommend you read Javier Marias' “All Our Past Battles,” a wonderful collection of stories around the “el classicos” between Barca and arch rival Real Madrid. You’ll understand the melodramatic quality of Barca’s defeats (and wins!), and the great poetry that surrounds all of its appearances, on the pitch and off. More than just once, Barca squandered opportunities to close in on a victory that was thought secure because the team’s abundantly talented players gave in to a seemingly insatiable quest for inspiration, artistry, and class rather than scoring a simple goal. The simple way is never the easiest for Barca. Barca’s striving for excellence feels nostalgic but at the same time very relevant and timely.

Franklin Foer also dedicates a whole chapter to the “Blaugrana” (Catalan for blue/red) club and its political undercurrents in his excellent “How Soccer Explains the World.” FC Barcelona was one of the first soccer clubs to be founded in Spain, and it became a haven for Catalan sentiment when Catalan self-government and culture were proscribed during Franco’s dictatorship. The club emerged as the playful manifesto of Catalonia’s spiritual independence, and since then, nowhere has soccer been more fundamental to the sense of identity than in Barcelona. Former Barca full back Oleguer even published a book which was about politics as much as his own career. Barca supporters joke that he only played when he was not on a protest march.

It is ironic that a club rooted deeply in Catalan nationalism has such an international following. But Barca’s appeal is so global precisely because its roots are so local. Barca represents the Catalan people while at the same time creating a sense of \belonging to “beauty and quality.” The meaning of Barca transcends the boundaries of sports and nations, and embodies the universal values of sportsmanship and integrity.

Every brand can take a page from Barca’s “magic ingredients”:

Aspiration: Barca has always set itself and its members daunting challenges to strive for and rally around. The latest one is “The Great Challenge” campaign which aims at growing the membership, fostering Barca as the biggest and greatest club in world soccer. Before the beginning of this season Barca also declared that its goal was to win all three competitions it participated in. Some may call this arrogance, but for Barca it's a brand driver. The “Big Hairy Audacious Goals” set by excellent teams always need to exceed the past ones. Motivation originates in the belief and opportunity to achieve the extraordinary–no matter what it takes. Underpromise and overdeliver is just good execution. Overpromise and overdeliver are the signs of a class act.

Only the best: Barca’s management and members are never satisfied with average, and they despise mediocrity. They understand top quality, tactically advanced soccer as a moral obligation. Only the best players make it to Barca where the competition is brutal. Analogous to GE's famous 10 percent rule, the lowest performing players in the team usually have to leave the club.

Social responsibility: Barca is fully owned by its members, unlike most other big soccer clubs--which are either in the hands of  large corporations or American (Manchester United) and Russian (FC Chelsea) billionaires--and they possess significant voting power. This “power to the people” tradition reflects a distinct social conscience that is expressed in many ways. Sure, other clubs are using the power of their brands as well to do good, but no other club’s social responsibility is so deeply engrained in its DNA as Barca’s. Based on its spirit of independence, the club has always taken on broader social issues and played a pivotal role in promoting diversity, tolerance, and peace worldwide. Barca’s partnership with UNICEF is a statement of the club's continuing efforts to be at the forefront of solidarity projects with a global reach. Under the agreement, which bears the slogan “Barcelona, more than a club, a new global hope for vulnerable children,” Barca contributes to the financing of UNICEF humanitarian projects and endorses UNICEF on its shirts–as the only major European team not to wear an advertisement. Club president Joan Laporta rules out any type of commercial shirt sponsorship and  instead seeks to promote a humanitarian message: "FC Barcelona is not only a football club, but a club with a soul.”

The real thing: To a European soccer fan living in the US who has grown accustomed to hyper-commercialized sports events, it is reassuring to see how purist the soccer experience still is in Barca’s stadium, the Camp Nou – a few pre-game commercials, no half-time show whatsoever, and all attention on the players, even during their warm-up exercises before the game. In Camp Nou, it is all about the “beautiful game.”

Charismatic reference point: Messi, arguably the world's best soccer player, serves as a reference point for team mates and fans alike. There is no one else like him, and he outshines all other soccer superstars with his playfulness.

Disruption: Powerful brands need an element of surprise. They should always take the freedom to ignore the quest for consistency and do what they want--irrationally, passionately, and with no regrets. Every three years or so, when a cycle ends, Barca’s management disrupts the existing team structure and builds a new squad. The rule is: Always change a winning team! By all standards of modern business, Barca is a professionally managed club but yet there is a sense that anything could happen anytime – almost like in a soccer match.

The Champions League final today will be another milestone in the saga of the Barca brand, regardless of who wins (2-1 for Barca, my prediction). Humility and hard work have been the traits of Barca's season so far, and in the end, dignity will matter more than titles and trophies at a club that is “more than a club.” And that exactly is the hallmark of a great brand: “Keep yourself clean and bright. You are the windows through which you must view the world,” the ancient proverb goes.

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About Matter/Anti-Matter

Tim Leberecht and Adam Richardson both work for frog design, a consulting firm specialized in designing innovative products and services for Fortune 500 clients. On the Matter / Anti-Matter blog, they engage in a debate around questions they face day-to-day in their work, using convergence/divergence as a lens through which to look at the pressing issues in business, culture, and technology. What makes a successful convergent product or a successful divergent innovation? Is convergence a myth that users don't really care about, or is the current state of convergence just not satisfying enough for them to embrace? How much divergence of innovation is good, and when does it just become confusing? How do you stay on top of people's ever changing needs and wants?

They are members of the CNET Blog Network and are not employees of CNET.

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