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Context, Value & The New Marketing Economy

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I’ve been invited to do a five minute presentation on Context at Paris 2.0 this Tuesday. Working my way through the script I decided to put the whole thing into the presentation and upload it. Love to get some feedback on this before Tuesday :o) Thank you in advance.

(View slideshow at slideshare.net)

View more documents from Helge Tennø.

The script:

    The immersion of digital stuff, making the accessibility of media-, communication- and social technology almost ubiquitous, has led to a behavioral change in our everyday lives

    - (it will mean so more next year, and more the year after that) – Kevin Slavin….

    This is interesting, not because we think this means that marketers can reach people all the time, they can’t, but because people can reach marketing all the time, which is much more significant.

    Brands now have the opportunity to be reached, by people, when people want to.

    This turns marketing up side down….

    Marketers used to be the people that reached the people (the customers), now the people (as participants) are the ones who reach marketers.

    The great shift is this:
    When marketers were controlling the situation, marketing was done blindly through media channels, affecting people’s anticipation of a situation outside the situation itself, manipulating their feelings about it. We were telling people how to feel at a point in time when they didn’t feel anything. (Who cares about shaving while enjoying a 2pm break from boring work routines?)

    Today marketing is accessible inside the situations, so the job changes.

    When marketing exists inside situations the brand’s own story is irrelevant, the experience itself will always be stronger.

    (why would I stop doing what I’m doing just to listen to your version of what I’m experiencing right now?).

    Marketers stories become irrelevant inside situations because they are different from peoples own stories.

    So marketing changes …

    The only reason for people to access marketing inside situations is because they gain something valuable.

    And if marketers can’t tell their own story, the goal becomes making the participants story better.

    So how do you make it better?

    By understanding the context, and adding value to it.

    This is the new marketing economy:
    The goal of marketing is not to win the battle of stories (as is the case for traditional media marketing), but to understand the abilities, emotions and activities of a situation – the context – and add deliberate value to it. Making it better, becoming indispensible as a value provider, and gaining ownership to people through direct relations with them over time…

    To understand this we need to accept that products are worthless. And only become valuable as they are introduced to a situation where they are relevant. That brands aren’t product providers, but value providers, something they have always been – marketing has only spent its time distracting our focus from this and done its most to become unwanted.

    Products are worthless:
    A toothbrush is worthless outside its context, taking up much needed space in the bathroom, but when it comes to tooth hygiene, it becomes indispensible.

    The New Marketing economy says that the context is larger than the product, much larger, and that marketing is about increasing the value of this context – and growing the context itself.

    As Whirpool found when they went on to increase their value by launching a podcast about the American family – not talk about their home appliances..

    Or Fiat as they use personal environmental initiatives to create value – not brag about their car.

    Or Wasa, as they help you get a nutritious breakfast – not sell their delicious bread/cracker things.

    Or BakerTweet – making sure you enjoyed the product in its best possible context – when it’s steaming hot…

    Brands need to see themselves as value creators, adding value to contexts where their value is appreciated and needed. They need to investigate and explore these contexts, surrounding their brand and products, and take ownership of them.

    The next marketing arena isn’t similar formats in similar media, it’s becoming the most valuable brand inside the experience surrounding the product and the brand.

    The marketing currency is not about attention, interruption or interest. It’s about creating deliberate value. Building direct relationships and great marketing through connected services, utilities, arenas and stuff.

    The new Marketing economy is about understanding context and adding deliberate value

The four horsemen of Digital Media

Understanding the challenges affecting digital media as a marketing platform introduces some new creative challenges. What we are seeing is very solvable, and they are triggering the start of a much more diverse and interesting time for marketing and advertising.

There are four main challenges disturbing the effect of marketing investments on digital media [DM]. Understanding their abilities, and why they are doing a much better job than DM on doing what DM originally did gives insight into what DM needs to offer in order to regain its value. (Sorry about all the DM’s :o)

the-four-horsemen-of-digital-media

The important thing is not to copy these abilities, because that would not be bettering digital media, it would be destroying it. We need to find the solutions within the context of the existing value creation of the digital media body. And this is where it introduces some great creative challenges for strategists and creatives.

The four horsemen in this case can seem very threatening; on the other hand, sometimes innovation needs to be forced by inescapable realities.

The Four Horsemen:

    1. Earned media. We are increasingly seeing earned media outperform paid media and becoming the main driver of traffic to marketing initiatives.

    2. Middle men. Media needs to build down the barriers between brands and participants online, today the artificial divide media offers are lessening the value compared to brands own initiatives.

    3. New behaviors. Increased accessibility to tools and technology not only boosts media consumption, but also changes how the use integrates into our daily lives. Advertising models tailored for a more traditional media consumption looses effectiveness.

    4. Brands as competitors. The competition is no longer between digital media channels with similar products; it’s between media channels and the brands own initiatives.

Looking at the larger picture there are already two visible solutions:

    1. Media channels need to offer arenas where brands with shared values can build direct relations with the participants through offering deliberate and relevant value over time.

    2. Exploring and understanding Media’s new role in online activities – defined by its abilities. And build products that fit better to this part of the online marketing eco-system, or create a new role all together.

Lets look at the horsemen, where are the opportunities?

    1. Earned Media, this is simple. Earned media is earned, which means it finds and links to stuff that is valuable. (In effect this isn’t relevant to any advertising campaign that people don’t want to share. On the other hand…). If the advertising is valuable, then the media channel needs to offer the space for where the content resides. If brands build stuff on media channels that earned media links back to, you create a win-win situation. Simple :o)

    2. Middle Men, a bit more complex. Media needs to get out of the way. At the same time they need their presence as they are dependent on not becoming invisible themselves. This creates a situation where brands and media need to collaborate. We already know that both brands and media channels are value providers, and it is the interfaces where they create shared value we are looking for. Media opens to such a collaborative opportunity through its development of arenas specially tailored to niche interest and niche brands.

    3. New behaviors. Increased accessibility to information-, media-, and social technology first changes our tools, then our behaviors. What we are seeing now are people not only changing how much time they spend with media channels, but also how they use them. The jury is out on this one as the changes in behavior have just started, but both Transmedia, synchronized media activities across platforms and content enrichment through participation carries some very promising and clever inspiration.

    4. Brands are the new competitors. As brands can create their own media channels and direct relations arenas, the need to use media as a vehicle for messaging decreases. This means that the competition for marketing dollars is not exclusively between the media channels but between the media channels and the brands own initiatives. What media needs to do is both understand how they can facilitate and increase the value of these arenas, by offering a new property tailored to each brands initiative. Top of mind this might be “free” traffic, but better and more unique values will be more connected to synergies gained from shared values.

Summarizing this into seven simple bullet points, digital media needs to do the following:

    1. Start seeing themselves as value providers, not content providers.
    2. Understand that advertising moves from just being messaging to becoming something useful and valuable.
    3. Start selling long-term initiatives, helping brands build direct relations with people, and connect with them over time.
    4. Produce content that is stealable and multipliable.
    5. Build a portfolio of unique values – not unique content or formats.
    6. Offer clear values as a part of a marketing eco-system, facilitate larger parts of this system.
    7. And finally, offer brands marketing abilities that they are unable to offer themselves.

SEVEN-SIMPLE-BULLET-POINTS-IDEAS-FOR-DIGITAL-MEDIA-MARKETING

How much is irrelevant

Display advertising was designed to work inside a traditional media format, tailored to a certain context of media use. As this use-context changes with the accessibility of new technology – as readers become participants, as media gets integrated into everyday life and exported outside the browser – these formats don’t fit the context anymore and start to loose their effectiveness.

bjornogmarianne

This is similar to saying “digital didn’t change anything, but everything digital changed”. Because with the advent of the Internet (before broadband) the old models didn’t really change that much, they just got digitalized –the use pattern stayed the same (looking at use statistics we see that the older the citizen the more similar their use of digital media is to traditional media). What we are seeing now is the alteration of the core concepts of the use part – which has a much greater effect on media and advertising than just moving some stuff from one platform to the other.

Regarding click-rates on online banners we’ve moved from being told a 0,15% click average is good to a 0.05%. This isn’t necessarily because we’ve got lower expectations. It might just be because the average drops – because the advertising formats aren’t following the changes in consumption patterns.

Now we are very busy measuring the amount of media consumption, and supporters point to every research showing an increase. But this only points to the amount of media consumed, not the pattern of the consumption – and this is where stuff has changed…

In other words, there is a new context for using media, and measuring how much we use it isn’t helpful as it isn’t relevant. What is useful is understanding how the use has changed, and figuring out how this should change media – and its advertising..

This is not the time for Big Lazy Brands

What are the challenges for FMCG brands in today’s post digital landscape? Especially, how does Digital Media facilitate good marketing opportunities in the Every Day Life?

The five ideas / suggestions presented are the following:

    1. Marketing online has to impact how people feel about the brand. (it’s about ideas, not technology).
    2. Build direct relations.
    3. Be a conscious and active part of the every day life ecosystem – from at home, and out there, to in store.
    4. It’s about them, not you – create contextual value.
    5. Confusing social media with media.

View more documents from Helge Tennø.

It’s title and content is strongly influenced by the Brand Building in a Recession lecture by Richard Murray at D&AD earlier this year. A much recommended video.

Brand building in a recession: Richard Murray from D&AD on Vimeo.

Bridging the gap between technology and behavior

In an epic quote by Clay Shirky there is a missing link; how do we get from one state to the other?

    “A revolution doesn’t happen when society adopts new tools, it happens when society adopts new behaviors” – Clay Shirky, Us Now

So the question begs: How do we move from things being “a technology“ to being something changing our behavior? The solution could be both interesting (most these things are :o) but also very tangible and applicable for the stuff we do.

Jeffrey Cole of USC Annenberg School Center for the Digital Future presented some ideas on broadband a couple of years ago. Saying that the effect of broadband has nothing to do with the bandwidth speed, but is related to people being “always on” and with a fixed cost. In other words, our accessibility.

Now broadband was an important enabler for how we changed our use of the Internet, others where wifi, laptops, portable networks. All of them having one thing in common: increased accessibility.

Increasing accessibility to stuff helps us fit it into our everyday life, either by having the opportunity to use it when we want, where we want or how we want. Or by removing a host of rational or irrational barriers to its use (like the sound of a dial-up modem, but not speed).

Putting this into a micro perspective you can say that if you are trying to change the behavior of your customers:

    Say you want to ad something to the context surrounding the product in which you wanted the customer to adopt this new service as a part of their behavior and thereby increasing the value the brand is creating.

Then accessibility is a driver for this.

Meaning that hiding stuff away inside “browsered” websites isn’t a god idea, but porting solutions to a range of different platforms, handsets or objects might be a better and smarter way.

The goal would be to make the service so easily accessible that it as a technology becomes invisible but contextually becomes valuable. (Also borrowed and slightly adopted from Shirky).

Consequences for the post digital mindset

What are some of the implications and consequences for the post digital mindset?

Being interviewed by the brilliant people over at neboweb, I was asked to elaborate on some of the new abilities in marketing, universal identities, everyday life and design. Here are some outtakes:

    To read the whole interview visit the Neboweb blog at http://www.neboweb.com/blog/everyday-life-interview-helge-tenno/.

    - The attention web has some abilities that no other form of marketing can copy (attention and immediate effect), but as the number of tools in the marketing toolbox are increasing, so is the competition for marketing dollars. What I am anticipating is that brands will start to invest more money in areas with a different currency than mere attention and interruption.

    - Marketers need to understand that as they gain access to people in a whole new way this requires them to rethink their value proposition towards their customer and ask themselves if the way we do marketing today is the right way and based on the right principles for doing marketing tomorrow? Has the whole way in which we create and provide value changed?

    - As soon as a company owns the value creation of a situation, and starts offering this both to its own customers and to competitor’s customers, they are in fact removing all these people from the game board. Because the direct relationship which they are building with these customers will give them access to them, and their knowledge, in a way that is unrivaled by anything else. And that gets a foothold we have never seen before.

    - It’s probably not a generation thing, it’s a mindset thing. Accepting that humans are complex and irrational – and building stuff for that, rather than for something that is controllable and rational (which is technology).

Read the rest of the interview over at http://www.neboweb.com/blog/everyday-life-interview-helge-tenno/.

rethink-their-value-proposition

The cost of attention

When attention and engagement becomes less important in advertising and marketing, things are going to get a whole lot healthier.

    1. This, the last from a series of posts I’ve published during the last week questioning some of the terminology we use as advertisers and marketers. (narrative, content, individuals).

    2. It’s an idea, and hopefully, during the next couple of weeks, I will be able to elaborate and present examples that prove my point: That the terminology we use needs to change if we are going to build better, healthier marketing in a new brand landscape. Where we are allowed access to peoples personal lives, and where positioning a brand means something completely different than telling a story about it.

The problem with attention is that it becomes a reference to quantity, not quality, often leading to success metrics’ related to time or clicks. Which bears little relevance to positioning the brand or product in any way. Brains don’t make their minds up based on how long or how much they engage with an activity, they build their impressions on quality not quantity. read more…. (Although, quantity has always been kind of a life west for bad communication).

quality-not-quantity

The opportunity we get from thinking outside of attention and engagement is that it opens the advertising to a much healthier degree of brand and product positioning. Because we can say that the goal of the advertising is to create value, in a way that puts no demand on stealing time away from people, keeping people interested long enough to tell a full story, or limiting our marketing to those who are interested enough in our advertising to actually spend a lot of time with it.

    As I’ve noted before to marketers: “People don’t care about your brand all the time, they care about it sometimes.”. We (the advertising business) need to keep in mind that people don’t care about advertising, at least not advertising the way we see it. And that making stuff interesting enough to create attention isn’t a decisive element of positioning.

Thinking outside attention and engagement also opens up the strategic and creative process for the new brand landscape, the Everyday Life, saying that the goal of any advertising or marketing activity is to create something valuable – without limitations on what form or format this will take. Be it a story, an exchange of ideas, an object or a utility etc..

If we remove the inherent need for time or narrative from the process – where would our ideas go?

    - Let me use social media as an example. Our focus on attention and engagement frightens marketers as they see SM as something very time consuming, but this very seldom needs to be the case. SM presents a whole range of abilities that companies and organizations would find valuable outside the metric of attention and engagement: Authenticity, relevance and trust being some of them.

My question is simple. Even though attention and engagement have become simple buzzwords for labeling advertising, are they creating a useful reference for success? Or are they distorting the picture?

distorting-the-picture

Post Digital Marketing 2009

This last year has seen logarithmic changes in marketing, fueled by different concepts like Utilities, AR, The Collective Exchange of Ideas, Transmedia, Digital becoming ubiquitous, Mobility and more.

I have tried to be a part of some of these discussions online, and have as a result of other peoples shared and collective wisdom published a range of posts, presentations and tweets on the subject.

What I wanted to do before leaving on a short summer vacation was recombine all the best ideas, into ONE Post Digital Marketing 2009 presentation. Summarizing all the major thoughts finding its way to my “ideas”-folder this last year.

View presentation below or here.

View more presentations from Helge Tennø.

Hopefully it will both be interesting and inspiring to some, and the format introduce what Erin McKean defines as Serendipity:

    “Finding something you weren’t looking for because finding what you are looking for is so damn difficult.”
    - link

Please enjoy, and have a nice summer (winter).

Best Regards
Helge

Media as an event

Kevin Slavin of Area/Code states in this brilliant video from 5D Conference (previously published on this blog) that TV is an event, something millions of people gather around at the same moment in time, creating an experience where interaction, collaboration and synchronous action can occur.

Putting media into this context, where we create cross-platform experiences around a massive, congregating event, might also help us find new business models, new value and new context. As the activity surrounding the participatory part of the experience might be suited for establishing and growing direct relationships between companies and participants.

Now this isn’t only a TV mindset, every form of mass media is an event. As Seth Godin puts it while adding the same train of thought to newspapers, in one of his latest posts, “Everyone else reads it”:

    “we need to read what everyone else is reading in order to have a sense of being in sync. If it’s in there, it matters, because everyone else read it.”

In fact, media, in and of itself is in the event industry, something everybody talks about, shares and spreads. Something we have to be a part of as it is a part of our culture and frame our conversations.

Thinking of media this way, not only as a source of information or entertainment, not only a social family event or as couch surfing. But an arena where people with shared interest and enthusiasm converge around a shared idea, might be very powerful. The trick is to find where brands can help extend the experiences with value adding marketing, not interrupt them with irrelevant advertising.

Our discussions, especially around media, should concentrate on how this new stuff ads to the old stuff, not how it kills it. How experiences spread across platforms, not fit into one.

New media models ia about combination, mixing the role, or the best of traditional media with the abilities of new, not go looking for brand new solutions.

New Strategies Require New Measurements

As long as the standards for measuring value belongs the old Attention Web mindset, the ability to prove new value and need for new strategies will become increasingly difficult. Fortunately the solutions are right under our noses.

Explanation of Attention Web and Everyday Life mindset.

In this presentation, held at the INMA conference Wednesday, I asked if the numbers generated by web analytics software are generating the right kind of value? And to which degree the simplicity and accessibility of these numbers are moving our focus away from what’s really important, (creating “situational” value), to something that’s important for something else (understanding movement patterns).

It’s an idea I picked up from Adrian Ho a couple of months ago, which rings stronger and stronger as I see that the Everyday Life mindset demands us to understand that our solutions, even our brand foundations, might be built around a completely new set of values as both peoples behaviors, and their accessibility to companies change.

Slideshow below, or here.

View more presentations from Helge Tennø.

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