Digital’s introduction to retail, be it a slow one, will accelerate as the understanding of the width of web and mobile broadens from being all about destinations, to integration into every aspect of business:

Find the presentation below or at slideshare.net/helgetenno.

As always find the individual slides under CC-license here: flickr.com/everythingnewisdangerous

I’ve included the part of the script describing the three areas of retail I’ve concentrated on; product, in-store and business opportunities:

Product opportunities
The product is not just a “brand” living on a shelf or being consumed by a member of the public. It is a character, which within the framework of a strong identity changes its characteristics to fit different roles through the stages of its own lifecycle; from the initial idea, the spark, to its realization (design), its distribution, shelf life, shared product experience and recycling (sustainability). Digital amplifies the characteristics, and helps the identity adapt at each stage.

In-store opportunities
The retail outlet is the most important arena for public choice. It is intense in its range of decisions, and numbing in its range of (similar) products. Inside this arena there are limited opportunities within frameworks. Frameworks put in place by the non-digital, non-organic world of cardboard and floor space. Digital transcends the limitations of the shop infrastructure, serving communication through personal devices controlled by a digital brain in “the cloud”.

In the advertising mindset the retail communication belongs to the “call-to-action” category. But this limits itself both in its expense on resources (financial and labor), scarcity of real estate and limited time span. In the design mindset the goal is rather strength through identity, creating a long lasting top-of-mind preference through establishing an interesting story, sharing values, creating memberships and avoiding the retail rock concerts of advertising.

Business opportunities
There are new business opportunities to be explored and discovered through the extension of digital and organic platforms. From engaging the crowds to taking the store to the world – not limiting access to it by physical destination. In categories where products follow patterns and become remarkably similar, it is digital and organic platforms that not only invite customers to explore and discover new, unique experiences. But also develop more layered identities, establishing thicker product relationships, and unwrap new business opportunities.

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A special thanks to PSFK which as with a stroke of coincidence launched their brilliant PSFK Future of Retail Report just last week, adding a whole section to my presentation – I’ve been extensively referencing the source.

PSFK Future of Retail Report

I would also ad these brilliant people and publications as they all helped in filtering the cases and surfacing the best ones:

springwise.com
popsop.com
mashable.com
rubbishcorp.com
adverblog.com
Ingmar de Lange
mobilemarketer.com
digitalbuzzblog.com
Zeus Jones
storefrontbacktalk.com
cpbgroup.com
techcrunch.com
Seth Godin
Richard Murray (for giving us the best insight on retail)
and for his brilliant and extensive posts, *Supercollider at geoffnorthcott.com.

In the communications hierarchy, there are four main field’s positioned in relation to each other. Could visualization introduce a way of understanding their role and ability in relation to each other?

During a short talk with Ji Lee at Gulltaggen 2010, he presented a hierarchy where advertising is at the top, then marketing, brand and at the bottom design. I’d never thought of placing these four fields into such a structure, but loved the concept, and it made sense to position them in relation to each other in this way.

Trying to design this idea, I ended up drawing a pyramid and started adding context to each stage…

Advertising
At the top of the pyramid, advertising can be at least three things:

1. Positioning (Al Ries, Jack Trout),
2. Creating an anticipation of the experience outside the experience itself.
3. Direct sales

Advertising is a great tool for selling anything from low interest products to aiding in creating or changing the perception of a brand. Advertising is tangible, but swift and constantly changing. Its stories and messages are focused on getting people to perform an action. Advertising is designed from briefs defined by guidelines, strategies and goals further down the pyramid; it’s top level communication.

Marketing
Marketing is the process of promoting and selling goods and services. It’s executed through individual actions, but fundamentally it’s the overall strategic program, defining, coordinating and executing on all levels of the organization. Marketing is the sum of day to day activities putting products to market and activating people through promotion and sales. Marketing is designed to achieve company goals and is constrained/directed by brand and design.

Brand
There are as many definitions of what a brand is as there are brand experts, from Neumeier’s “gut feeling”, to Yakob’s “The collective perception”. One thing is for certain; brand value exists in the mind of people engaging with it – not the company itself. But still, there needs to be guidance and direction to this value. The brand strategy defines how the company should achieve the right set of values. Branding aims at creating an advantage in a market place filled with identical products, as Helen Fischer quotes George Bernard Shaw: “Love is overestimating the difference between one woman and another”. The brand direction defines a framework and guides the rest of the company’s promotional and sales activities, but it is not fundamental, it is not the core company idea.

Design
The fundamental idea behind the company comes from its design. From identifying how to offer value in a specific situation, to designing the product (or service), how it creates value, its unique, identifiable identity, its story, form, interaction etc. From the initial value proposition to its tangible product the design defines how it creates value, how it performs, and how it remarks itself in the marketplace.

Design in this context is not just the visualization of an engineered product; it’s the comprehensive identity of the company or product – from the ground up.

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By looking at the pyramid we can identify the role of each field of communication and how it relates to the other fields. (Advertising is created on the basis of the marketing strategy, which is the consequence of the brand and design platform. The brand is an enforcer of, or supplement to, the design – or lack of design).

It’s also important to note that job title does not define which part of the pyramid you are working on. Great ideas come from great groups of people, not labels. The point is: Understanding the role of the job at hand, and how this job is positioned in the greater complexity of the communications strategy.

I used to hate these things; thinking that it turned the Internet into a generic reading platform (as opposed to a marketing platform), but now I think it’s the other way around.

Publishers aren’t good at designing business models online, most cloak inside a big publishing category, and there are few interesting and identifiable identities. If one could adopt more of the principles behind these kinds of presentation designs, it would be a starting point to create stronger identities, better experiences and hopefully more viable business models.

The service I’m talking about is Arc 90′s Readability, aimed at simplifying the presentation of content so as to make it more readable. But what happens is more than that…

Readability – Installation Video for Firefox, Safari & Chrome from Arc90 on Vimeo.

The removal of all the strongly colored, moving shapes of inefficient advertising (business model wise), all the disarranged forms of hyperlinks and navigation scattered around the page (to get more page views) adds up to quite an efficient interface giving the reader more time to enjoy the content, mull over it, get more value from it – compared to when it is presented in a rushed, hectic navigation environment.

Now I’m not saying that it is the lack of graphical elements that are making this environment better, I’m not. It’s the lack of intense navigational and commercial noise aimed at supplementing a business model designed to generate clicks and views. Which is an infrastructure business model for advertising, a business model that has been proven not to work:

1. Digital, often representing half or more than half of a publication’s readers generate only 5% of a publisher’s income. (link)

2. There is an increase in earnings from subscription models, while the advertising revenue is declining. (Add to this recent news that a large Norwegian publishers is earning four times as much money from its niche subscription products compared to all its display advertising – the infrastructure business model’s future looks bleak.)

Publishers need to enhance the experience of their environments by designing them through their identities; their value proposition, mantra, promise to the customer etc. (Through the application of design and form in order to enhance the value of the content AND the environment).

Today the generic standard publishing interface is overly linking up every piece of content in every direction in what ends up to be a navigational piece of content rather than a valuable piece of content.

Secondly, most publishers today present their content in generic CMS-publishing windows where there is little brand, no identity, just more of the same publishing “cate-orgy”. :) (There are exceptions of course)

As the Future Media presentation suggests, the value for publishers is not from their advertising, but from offering readers, subscribers and even members, a unique, valuable experience over time (content is created in collaboration with companies). This is achieved both through more interesting, scarce content, and better environments for extracting value from it.

The Popular Science iPad application, although tailored for that specific platform, is a long way ahead. And is in stark contrast to the experience Popular Science invites people to in their “browsered” environment.

I suggest that it is – in the interface between / by understanding the principles of – the Popular Science iPad application and the Readability application publishers must explore, in order to design more interesting, unique and valuable identities for their browser based content, enabling them to discover new business models.

If an identity is to create value through identifiable and differentiating qualities, it can’t be designed through employment in the latter stages of a standardized process. It needs to lead the entire creative and strategic process from its initial spark to its finale.

In his talk on FMCG, brands and product design, Richard Murray suggests that we are better at creating categories than individual brands.

Is the sameness of unoriginal ideas to be blamed on our processes being too similar? If the analysis to the insight, to the design and form follows the same pattern across consultancies, agencies and brands, then everybody follows a similar pattern in order to discover the great insight that leads to the unique idea. The problem is, there is a lack of unique ideas. We are in a hammer and nail situation: “If we think our only tool is a hammer then every problem looks like a nail”.

Organic platforms isn’t only evidence of this, it might as well be the biggest category driven collection of surfaces we have.

A great deal of organic productions are built on an offspring of a model created back in 2000. A brilliant tool with an unfortunate side effect: everybody follows an identical pattern for development, one that engineers the structure in a one-dimensional approach, before adding identity at the end; as some kind of tag.

There are originally two legs to identity: The first one is the understanding that the visual identity and story of the product helps it differentiate itself in the market and create a place in peoples harts. The second one is the experience created around the product which helps the product become unique, by enhancing its identity through experience.

On organic platforms there is a third leg as well: Identity design is not only used to design experiences, it also identifies existing experiences.

What does this mean: Designing identities, on organic platforms, has expanded it’s traditional form, which to a large extent has been focused on visual identities and story. Designing identities now also demands that we identifying existing experiences and redesign / augment / ad value to them.

The result of the existing generic standardization, is that it has created an overwhelming range of sameness. Different brands offering the same services, content and applications online – following a pattern that not only creates a surge to make sure we are offering whatever everybody else is offering (the artificial standard / benchmark), but worse – having everything created, copyable by the competition.

Adding a different color scheme or logic at the end of a process does not create a unique experience, it merely ads a label to a generic offering. This is the result of a mindset where identity takes a back seat and is added at the end.

A generic brand identity is not an identity, its a category.

Unique and identifiable brands on organic platforms comes from doing the opposite to the standard process: It starts with the identity, and employs it to every strategic and creative decision from the first spark to the finale. Resulting in a unique and identifiable experience, which the competition is unable to copy and standardize in the marketplace.

Mobile is at the forefront of representing a completely new way of thinking about marketing.

But in order to understand this we need to look beyond the SMS and the text voting, and start exploring the real potential of the platform.

Since the Mobile Abilities Map pdf, published two weeks ago, has received a great deal of interest. I thought it would be a good resource to readers if I collected and published my inspiration and ideas to each topic. Hopefully getting some inspirational juice flowing.

- I’ve added links to each resource on slides where this was possible.

I hope people appreciate the presentation, and continue sharing great links on their own blogs (and link back here) or in the comments section on this blog.

Every traditional marketing campaign is a customer purchase, that is no revelation: ROI and CPC, CPM, CPA are all standards. But I suggest there is something wrong with that mindset. In fact, with the uncertainty of the future of media, everything might be wrong with that mindset.

Display advertising might still be around at the end of 2010, but what is the gain from buying 30 seconds from about 0,001% of viewers when your competition is racking up thousands of engaged participants and members?

This is not an argument against the format, it’s not the format that’s the problem. Its the alternatives, the future of media, and your competition.

(And the reason I’m saying end of 2010 is because media is changing, FAST, including their business model. And the outcome is highly uncertain.)

There is one more thing, of great importance and huge interest:

People will gladly spend a minute of their day composing and publishing their own version of the brand story, but they won’t give five seconds of their time to listen to the company tell their version of it.

I’ve put together a list for 2009/2010:

1. People talk. They don’t want to be interrupted, but they do want their conversations to be ignited and more valuable.

2. Earned media is becoming more and more important in the mechanics of the marketing eco-system. People don’t share stuff because they notice it, they share stuff because it’s valuable.

3. People are not on one platform, they switch between several – all the time. Only people building things for platforms care about platforms. Our activities need to give the participant the opportunity to choose how and where to participate.

4. People will share their version of a brand’s story with other people, but they don’t care to listen to the brand’s own story.

5. People are more valuable owning and using your product than thinking about buying it.

6. In the words of Kevin Slavin: “People will watch a TV program once, maybe twice, but they will play chess an hundred or maybe a thousand times”. Where would you grow your most important relationships?