How Brands Are Built In The Digital Age
This winter, I applied to the Admap Prize 2014 through WARC on how brands are built in the digital age and was shortlisted. Here's my entry and thoughts on building brands in the digital age.
Approximately two to three times a week, I purchase my morning coffee at a charming French café that’s slightly out of the way on my morning commute. I allow myself this small luxury, despite owning all the necessary requirements for home-brewing. The moment I step into this café, I am magically transported from the realities of fast-paced New York City to every American’s romantic notion of Paris. Furthering this illusion, I am surrounded by elegant French expats energetically catching up after dropping their children off at the Lycée Francais, ordering their cafés and croissants. As I approach the register, the refined Scottish barista, Andrew, greets me with a familiar hello and how are you, already knowing my usual order. I am not just a customer, but am the mayor (according to FourSquare). And this café is not just a caffeine and gluten–dispensing establishment, but a well-curated experience. Every employee, cake, cup and decoration has been specifically chosen to appeal to a particular customer. Impeccable service and friendly employees engage customers, while goodies like imported French treats delight them. It’s no surprise that I am not their only loyal customer.
Frank Rose points out in The Art of Immersion that “[The Internet] is the first medium that can act like all media—it can be text, or audio, or video, or all of the above. It is nonlinear … inherently participatory … constantly encouraging you to comment, to contribute, to join in. And it is immersive.” (1) The Internet is not just immersive, but mimics real life, in-person experiences. It can replace the music we hear as we walk into an establishment; the patterns, textures and colors specifically chosen to tell a story about that store; the stories and information the sales clerk tells us about their products. It can even substitute how employees interact with customers with a virtual “How can I help you?” through Twitter. As brands show up in our social network feeds, the line between “Would I like to buy this product?” and “Do I want to have a relationship with this brand?” has blurred.
As marketers, we are tasked with understanding how our brands should behave in the digital age—with wondering how to unlock the magic formula, the right amount of customer data with the appropriate social channels and mobile apps. But what if there is no magic formula? What if succeeding in the digital age, regardless of the customer or location requires a different attitude from brands, one that involves genuinely caring about their customers to create a unique, branded experience. Digital technology enables brands to infuse genuine human touch in all communication points - a two-way conversation and personalization that mirrors the types of in-person interactions that have dominated seller/customer relationships throughout history.
“May I help you” begins with actually being there. An establishment carefully picks their location to cater to a specific clientele—to fill an unmet need. Although businesses are developed with the intent of making a profit, successful brands are also closely tied with the intent of helping people – either through their location or actual products. For my favorite café, the owners may have been compelled by the intention of giving French expatsa place to connect. For Warby Parker, their purpose may have revolved around giving customers affordable glasses, shipped online. But most importantly, both establishments carefully picked their location based on their customer’s needs, whether it’s choosing a particular neighborhood to deciding on an online distribution platform. Brands who genuinely care about their customers’ needs and behaviors have an obligation to continually track where their customer may want to purchase products in the future and to serve those unmet needs.
Tesco famously catered to the buying needs of their customers when they created a “virtual store” in a Korean subway, allowing busy customers to conveniently scan products using smartphone-enabled QR codes. Kate Spade did something similar, creating a 24-hour virtual store in front of a few New York City empty storefronts, allowing customers to purchase products via the window screen and have it delivered within an hour. While the focus of these examples are often on the technology used, at the heart of these executions was a recognition by brands that they could use technology to better serve their customers’ needs.
A brand that genuinely cares about their customer delivers what they say they will deliver, and understands exactly what their customer values and needs. At a basic level, a person entering a coffee shop might value impeccable customer service and delicious pastries, but nowadays, a caffeine junkie might also seek reliable Wi-Fi. My favorite coffee shop offers free Wi-Fi, a service that has delighted Starbucks’ customers for years. By anticipating and catering to customers’ needs, brands are building their reputation one customer at a time. In the digital age, reputation is critical –the shareable nature of social can cause one bad Yelp review to go viral. A quick Google search can make it easy to tell which companies genuinely care about their customers and which companies one suspects are only focused on short term gain. In fact, the only types of companies that have survived despite bad reputations are those that customers have had no choice in supporting—from cable to health insurance. But even those are seeing a decline in sales as alternatives become available. Even brands that compete on price, most famously Amazon, work to ensure quality customer service and products, showing they care about their customers’ needs.
At its core, what a customer seeks in a product is unlikely to change with the introduction of new technology. Even purely digital brands, built in the digital age, like Facebook have revolved first and foremost around needs of their users. Apple understood that buying expensive electronics requires extensive research and the assurance that the product will continue to work. Consequently they have built their brand on excellent customer service that they have extended to online tools. With banks, people value security and customer service. In person, that might mean money held in a secure vault and helpful, well-dressed clerks at bank locations. In the digital space, that could translate to 24-7 online chat access, a user-focused mobile app and online, informative content. Citi has a history of using technology to serve their customers’ needs—first with the introduction of ATMs, and most recently with a mobile app that allows customers to scan checks into their accounts. Nike sells the promise of fitness whether through their athletic gear, mobile apps, FuelBand or even in-person athletic events.
Millennials, as a consumer group, are particularly important for brands to understand in the digital age, since they are the demographic most likely to be heavy consumers of digital technology. In December 2013, The New York Times published an opinion piece called Millennial Searchers, noting the ways in which Millennials seek meaning and purpose in their lives. For them, it is no longer enough to purchase something that will give them a fleeting sense of happiness—they seek more meaning in their purchases. Across categories, we see older brands tying themselves to a bigger purpose –showing they care about bigger issues and using social to spread that purpose. From IBM’s Smarter Planet to Dove’s Real Beauty, each seeks to convey that their products help fulfill a bigger mission. On the flipside, brands built within the digital age started with a genuine purpose: TOMS’s Buy A Pair, Give A Pair campaign was based on the premise of philanthropy, allowing the average person to be a philanthropist. Warby Parker followed suit. For younger brands, especially those appealing to Millennials, what you do as a company is more important than what you say because it helps establish you as being genuinely focused on customers. Each brand helps customers fill an emotional need with their purchase.
It has never been more important to ensure that at the heart of your brand, you care about customers. Digital technology has pulled away the curtain that marketing previously created around brands. Each communication and customer touch point becomes an opportunity for everyone to see how a brand treats their customer. Brands like United (Breaks Guitars), JPMorgan (Ask JP Morgan) and have learned that infusing a customer-focused culture is critical in maintaining the reputation of the company. On the flip side, companies with excellent customer experiences, such as Apple, Virgin America or Zappos, have grown in the digital age. In fact, their success is often attributed to a strong company culture. Employee and in-person experiences have the potential to represent the brand, and interactions can easily go digital through an online review or public Tweet.
Finally, a brand that truly cares will add that little bit of delight, fulfilling a human desire and want. It’s asking how your day is in a way that makes you feel special. Carefully wrapping your purchase. It’s the décor that provides a mini escape to Paris. Or the music that puts you in a better mood. It’s an employee that goes above and beyond for their customer—remembers their order, ensures a particular product is in stock. Or the particularly knowledgeable store clerk, who, like a good friend, gives you an honest opinion as to why you shouldn’t buy something in their store.
For the online experience, decor can be translated into a well designed website that takes you to another place as you browse during your lunch break. A busy shelf of curated objects can be turned into a Pinterest board meant as visual eye candy, as in Anthroplogie’s merchandising. It could be having a well-designed e-commerce site that allows customers to browse thoroughly and uninterrupted before purchasing. It’s the technology a company can harness to predict what a customer wants based on their interactions. Or six-second how-to Vine videos bringing out fantasies of DYI home improvement. Brands can even create physical spaces to cater to customers’ desires.
In December 2013, Samsung created a pop-up experience store in New York’s Soho. Customers were treated to free coffee, and the ultimate indulgence- cupcakes while enjoying a space to relax during the busy shopping season. In the digital age, what may once have been a local stunt can now be shared instantly and globally through people’ssocial feeds, allowing everyone to see how a brand caters to the hidden desires of their customers.
Two-way interactions can be built with a brand over time through social media—an exchange never achieved through traditional advertising. A barista can facilitate conversations between like-minded customers, playing host or even matchmaker. Social media communities can be built and nurtured by community managers with no direct intention to sell products, only a direct intent to care about their customers’ wants.
Traditional advertising plays a critical role in adding to people’s desires and wants. Now that a Google search (ZMOT) has taken over the role of conveying detailed product benefits and reviews, traditional advertising, more than ever, is a place to tell a compelling story. Budweiser’s “Puppy Love”—a heartwarming story of love between a dog and a horse—was voted one of the most popular ads of the Supe
r Bowl in 2014. As viewers, we may not exactly understand how the commercial fit into the heart of the brand, but our hearts were filled with warmth as we viewed the commercial. Popular viral ads of 2013 were likely to illuminate bigger issues that we are often too afraid to discuss on our own but want to (Dove’s Real Beauty Sketches), act as a purely distracting entertainment (Evian’s Baby & Me), make us laugh (Kmart’s “Ship My Pants) or make us cry out of joy (GoPro’s Fireman Saves Kitten). Ads that “go viral” are emotive, story-driven, funny and genuinely entertaining—all qualities that compel us to share so that we can fulfill our desire to connect with others, using them as conversational fodder.
While print ads are still a place to inform people about product benefits, they’ve also always been a place to inspire. Just as people have always cut out print ads and posted them in their spaces to inspire and aspire to, we can now “pin” and share visuals created by brands. A traditional print ad might be more product-focused, whereas brands can now create inspirational, shareable online images with quotes or content that touches on that hidden desire of constant self-improvement.
Regardless of the medium or execution, every point of communication for a brand is connected and conveys whether or not a brand genuinely cares about their customers. For brands with exciting products and strong, customer-focused values, there is a world of opportunity in the digital age. But for brands with a weak product that is not customer-focused, succeeding in the digital age will be an uphill battle.
To the naked eye, it appears that digital technology has revolutionized our universe. It has changed how we communicate and how we interact with each other, with ourselves and even with brands. But ultimately it has brought humanity and a new sense of intimacy back into our lives that brands can now tap into. It’s that human touch, that feeling that a brand genuinely cares, brought to us through a personalized Facebook exchange, a convenient mobile purchase or inspiring branded content. After decades of impersonal, mass marketing, digital technology finally enables brands to reach across the counter—warmly shaking their customers’ hands.
The Future of Advertising - As Told Through My 2010 Miami Ad School Application
Inspired by Faris Yacob's recent post, I decided to re-read my Miami Ad School Planning Boot Camp application from June 2010. Four years later, my thoughts on how advertising will and should evolve has not changed. This thinking is even reflected in how I answered WARC's 2014 Admap Essay contest on building brands in the digital age, which I can proudly say they added me to the shortlist. Below is my response to one of the application questions - word for word (recently edited for readability and not content). I think many of these predictions will come true ahead of schedule.
How would you evolve the state of advertising to be successful in the year 2020?
CLIFF NOTES
1. Sophisticated customer tracking tools will play a critical role in which products and ads we serve to customers. Customers will be in control of their data and willingly share it in exchange for tailored products and marketing.
2. Ad agencies will be fully integrated with less silos between disciplines such as brand building, digital, innovation, mobile or even employee engagement.
3. The integrity of a product and organization will be paramount as increasing transparency pulls the curtain on what marketing can mask.
4. The role of advertisers will be to entertain, inspire, add value to your life or even serve as a community creator - fostering connections between likeminded individuals.
5. The need for strategic thinking, creativity and brand building won't go away.
In 2010, companies can already track their consumers through browser cookies, smartphones, social networking sites, online shopping, rating sites, and many more devices. By 2020, marketers will have more sophisticated measuring and monitoring tools to predict exactly what brands you relate to, down to the exact style of dress you want, before you even knew you wanted it. Consumers will profit from their private information by selling it to marketers, negating privacy issues. By 2020, I will never receive an ad that wasn’t meant for me.
In order for advertising to be successful in the year 2020, advertisers will need to change their organizational structure. They will need to rely heavily on strategic thinking and continue to develop their client’s brand. Most importantly, advertisers will need to work with clients to offer added value to the consumer, either through the ads themselves or products development. Ads will be engaging, entertaining and social.
Currently, most clients have a long roster of agencies: their digital agency may be based in Boulder while their AOR is in New York. Within an ad agency, coordinating every aspect of the process is challenging – even harder and less efficient when you’re working across multiple agencies. In order for advertisers to be successful in 2020, agencies need to go back to a time when all aspects of advertising were under one roof. The very definition of advertising will change to fall under the umbrella of communications and even innovation, blurring the lines between public relations, product innovation, entertainment and social media. Advertising agencies will become strategic think tanks, understanding their consumer and directing all other branches of the process; digital, print, television, web, media, etc. to interact with the particular consumer - based on their behavioral preferences. Collaborators from all stages of the process will sit in on the initial brain storming session so, for instance, the lead creative understands what the media team can do to execute their vision in the appropriate fashion. While this may resemble an in house agency, I believe it needs to remain separate in order to foster a culture of innovation, allowing strategists to pull inspiration from multiple sources and stay fresh. In keeping with the theme of integration and innovation, advertising agencies will be more horizontal and collaborative with the understanding that good ideas can come from anyone in the organization.
In addition to leading the strategic process, to be successful, advertisers will consult on all aspects of a client’s business that interact with consumers - from the retail floor to customer service, ensuring that the brand’s integrity is held throughout. With the rapid spread of information, there will be no room for disingenuous campaigns that falsely reflect the product or service. The ad agency will not create the retail experience but they will work closely to lead the firm that does.
Based on their strategic insights, advertisers will introduce the right products for the right people, popping up in their daily lives without being intrusive. It will aggregate information from your social networking sites, online persona and previous purchases to determine which brands you affiliate with and which potential new brands interest you. In fact, customers will be rewarded by points they can use to buy products for giving out more of their data – thus ensuring that products will be marketed to them more efficiently. Advertisers will turn into highly trained personal assistants, presenting you with your every need as you go about your daily life. Mobile and geo-location services will be key to alerting you what you need, when you need it and when you’re near it to get you to the purchase. Brands will create stronger communities as they are starting to do now – turning our global economy into a small town feel and giving people the connections that we all seek.
Advertisers will start conversations, entertain, challenge and excite their consumers. They will create social games that engage consumers with the brand. They will NOT be replaced by Google search or Facebook recommendations because consumers need that brand recognition (that comes in the form of advertising) to choose a brand out of the large sea of products. And brands need advertising to differentiate their product. As the tide is shifting now, the customer and advertiser will work together to create better products. This is how I would evolve the state of advertising to be successful in the year 2020.
My Earth-Shattering Revelation About Tinder
I recently went on my first two Tinder dates - two different guys but oddly enough, both had the same name and were the same age. I was hesitant to try Tinder because I had heard it's "Grinder for straight people," i.e. just a hook up app. But a few months ago, I ran into someone who adamantly told me it had evolved into a regular dating app and he had met his girlfriend through it. I set up my profile and and selected the right pictures, then started swiping. And swiping. And swiping. And then discovered that in this very new world of Tinder, there are TINDER MEMES! I said TINDER MEMES! About every thirty swipes or so (don't judge me), one comes across a guy hugging a tiger. This is a thing. This thing has its own Tumblr. I don't even know where to begin. If I were an anthropologist, I'd say this is a very thinly veiled attempt to convey their masculinity and wealth in one single picture. I mean - I don't think they let you hug the tigers at the Bronx Zoo.
The funny thing about this supposedly revolutionary new dating tool is that in place of algorithms, witty profiles and the appeal of specific dating destinations, the process for choosing a match is actually more akin to real life. When you're at a crowded bar, you can't scan the room looking for someone whose wit catches your eye. Or find any clues regarding your compatibility other than subtle non-verbal cues related to someone's appearance.
Like real life, it has even become common practice on Tinder to acknowledge that you're attracted to someone but do absolutely nothing about it. Long-time users may have over 1,000 matches but have only spoken to a handful. It's like an unexpected flirtation on the subway with someone that ends the minute they get off at their stop. Perhaps it's the fear that the real life romantic version of them won't live up to what we've quickly allowed ourselves to imagine.
So how did my dates go? Well - on the first date, completely at a loss over what to say - I opened with,
"This is my first Tinder date. I thought it was a hookup app but someone told me that now it's a regular dating app."
I'm not one for subtleties. There was a long pause as my date searched for a tactful response. I fully expected him to respond by telling me it was a hookup app, and then promptly end the date. But instead the date proceeded in a way that tells me that there are still varying expectations of what it's for. It didn't go anywhere. The second date was not a match either but at least I discovered two new wine bars.
I've never had much luck meeting and dating guy I've met at bars and don't know women who have but perhaps Tinder is the equivalent of going bar hopping to find romance. We shall see...
Where Everybody Knows Your Name
What will surprise EXACTLY NO ONE who knows me - is that I managed to find an adorably charming French cafe about a week after moving into my Upper East Side neighborhood. Like Brooklyn's Smith Canteen, which I had the pleasure of frequenting during my brief, but lovely stay in Carroll Gardens, Le Moulin a Cafe is also directly across the street from a French school. I often arrive just in time to stand behind a gaggle of parents who've just dropped their children off at Lycee Francais, energetically speaking to one another in French and somehow eating their daily croissants despite remaining thin. For exactly ten minutes a few times a week, I can pretend I'm living in Paris. Furthering this pleasant illusion - I've convinced one of the baristas to speak to me only in French - which seems like the exact opposite of what one should do before having their coffee. There is much stuttering on my part.The baristo, on the other hand, while not knowing French, knows something even better - my order. With a kind smile, he ceremoniously pours my side of soy milk into an espresso shot glass along with my coffee, a seemingly small luxury to arm me with an inevitably crowded subway ride and long day. The other day, I surprised him by switching up my order - a switch up made in an attempt to save money in 2014. How could he have known?
I'm working on an essay contest around how brands should behave in the digital age. Sunday night, I had one of those moments that artists strategists dream of - or maybe dread. It involved waking up in the middle of the night unable to sleep with ideas running through my head. I finally had to write them out in the dark on a scrap piece of paper - which were fortunately legible the next morning.
I digress.
In 2012, JWT predicted that a top ten trend in 2013 would be predictive personalization - the idea that brands would be able to predict what you're interested in buying based off of the data they have on you. But what if this is not a new concept at all? What if digital is simply a stand in for those everyday client / customer experiences? Instead of a charming baristo with a vague British accent to know your order, recommendations for products based on our preferences can easily be served up through digital. In fact, if this interaction took place in a small village a century ago, a store clerk might have even heard through the grapevine that I declared to save money in 2014 and might have offered a less expensive product. Back to our digital age - what if brands could link in with Mint or a finance-management APi, offering you products within your budget and even encouraging you to stick to the budget.
We've finally entered a future where brands can build relationships with their customers using the data collected through daily digital and in-person interactions, arming their employees to treat us like friends and serving us appropriate products. Ironically, this revolutionary new digital capability is feat that has been second nature to humans through their existence.
Cheers!
Give People Something They Need
The always innovative and clever Coca-Cola gives people something they need without asking for anything in return. But even more clever is that what they're giving - wrapping paper - is actually "happiness" as gifts often are for both the giver and receiver. Finally, making this a triple play in smart marketing, Coca-Cola's free gift turns into a walking billboard for the brand as people carry around their wrapped gifts featuring Coca-Cola's branding on the paper.Coca-Cola knows that the key to building a relationship with their customers is to give first and ask for nothing in return.
[youtube https://www.youtube.com/watch?v=fDTYlIkwexs]
Tech Disrupt 3.0
The longer I work in mobile, the more I see evidence that technology has disrupted every aspect of our lives. There is nothing we do that hasn't touched technology from the moment we wake up to the alarm on our iPhones to the moment we go to bed, scrolling through our Instagram feed one last time before we close our eyes. In fact, Mary Meeker's famous yearly tech trends presentation predicts that 2014 will be the year of wearable computing. So we've gone beyond social media and even mobile. But as someone working at the convergence of technology and advertising in New York City, it's easy for me to taught that this is the year of mobile, wearable computing, Google Glass, or any number of exciting technologies. The real question is, what happens when businesses finally embrace these behavioral changes instead of ignoring them? And what happens to those that don't?
A few weeks ago, I decided to check out the Warby Parker store in Nolita after finally getting a new eye glass prescription (yay health insurance!). I had heard of the startup but had become friends with the owner, Paul of my previous frames supplier at Caserta (go there!) and genuinely liked our customer / owner relationships. But as I casually tried on a few pairs, my eyes lit up with excitement. How could I resist $95 frames including the lenses, a good $200 dollar difference in price from any regular frames store? In fact, the ease of the purchase and price changed my entire outlook on eyeglasses. Perhaps they no longer had to be a critical decision to labor over for days, knowing they'd be a year-long fashion statement. I could now match my frames to my mood, or my outfit! Shortly after purchasing a pair, I dipped into a chain frame store just to compare. Rows of frames by well-known designers lined the shelves with designer prices. The store clerks seemed engaged in their own conversation instead of helping me so I quickly left. I vowed to replace the lenses on my old frames from Caserta because I enjoy shooting the shit with the owner and because they're great frames.
Following my trip to Warby, I decided that once and for all, I was going to purchase a Nike Fuel band. Earlier that week, I had posed the question through my Instagram feed - Nike Fuel Band or FitBit Flex. I had done extensive research online and was told that it was mostly a toss up, but that the Flex was more accurate. But what would motivate me? Accuracy or friendly competition? The answer, according to my Instagram community, was the friendly competition of the Nike Fuel Band. I've been wearing it ever since but truth be told, haven't given up my old FitBit.
So it's clear that regardless of your business, it's going to be disrupted by technology. So how can companies adapt? Here are two quick tips from my journey but more are sure to follow.
1. If your business is "analogue," make it the best analogue experience you can possibly create. Ensure that your customer service is top notch and genuine as well as your product. A quick glance at Caserta's Yelp review shows that nothing can disrupt the efficacy of a quality product and customer service. And their customers are spreading the word, coincidentally, through technology.
2. Your brand is not a product category but an experience. Extend it through digital products that enrich people's lives.
Digital Strategy vs. Brand Planning
During my internet research, I stumbled upon this thorough explanation of how digital strategy and brand planning are different. I've always been interested in both and hate that the industry makes us choose. In fact, I think choosing to work in both areas has hurt me in landing a full time job because employers want to pin you as one thing, not a generalist. People, this ain't politics and I shouldn't have to pick sides! I'm a strong believer, like Jinal Shah, that the two disciplines will eventually merge. But as Jinal points out, right now there aren't enough planners who are interested in digital for that to happen. And as someone who regularly attends tech meetups, just volunteered at a hackathon and is considered an early adopter, I can tell you that one needs to be excited about digital to delve into digital strategy. See Jinal's post below.
Let’s fuckin’ set the record straight: Account planners and digital strategists are NOT the same
May 29th, 2012 •
I vehemently disagree with the tendency most planners have in assuming that a planner and a strategist is one and the same. The argument is not about the title – which could be merely semantics but it is about the work process and the skill-set. It is especially easy to mistake and get confused about this in the type of environment we work in (i.e advertising agency) Step outside this bubble, and you’ll see that there are many flavors to a digital strategist and there are several deep skill-sets they have honed and developed over time to be simply merged with planning.
Just as there are several layers to brand planning, there are several layers (maybe more) to digital planning. If you ask me, digital planning sits under brand planning and not next to it because it needs to ladder up to the brand attributes/ values etc.
My biggest criticism of traditional account planning is that the planners don’t get very involved in the actual “making” of the idea. It’s called production in planner speak and the word is boring and uninspiring but in digital – that’s really where the idea gets made. And the idea continues to morph until it is beta tested. It continues to morph even as it is launched and the results come in and we tweak and make the idea better in real-time. Digital strategy is the true marriage of account planning, creative and production.
A (good) digital strategist works for the idea. With digital, you have to launch an idea that is in perfect harmony with innovation and current consumer habits/behaviors. You have to launch an idea that is technologically not too advanced and not too behind – Goldilocks! And that is not production or creative’s job alone – that is as much strategic thinking and application of tactical insights.
Also, the insights a planner brings to the table often only inform the birth of the idea or a creative direction. The insights that a digital strategist brings to the table informs the success of the idea and the actual meat and flesh of it. Sometimes the insight or “strategy” maybe tactical (will this particular user experience really invite participation and sharing?) and sometimes it is blue-sky. Point is – these insights underwrite the making of the idea and its success across the phases.
Our role will eventually become obsolete – it will mostly be absorbed by creative and a very small part of it will be absorbed by planning. But not yet. And not for the next few years. We have far too many traditional planners that simply aren’t interested in digital to wear this hat. You can’t teach someone to be an early adopter or experiment with technology or play around and deeply immerse/ engage in every new social platform or make games. Advertising needs us right now so if you still don’t get it – please STFU and let us do our jobs.
Call us whatever the fuck you want – as long as you let us work for the idea. I’ve even swept floors and washed dishes in name of creative. So there.
If you have more questions or want to hear more thoughts – please see the most popular posts (to your right). Feel free to leave a comment, unless you are going to serve up the same drivel I’ve been reading.
Magnum Pleasure Hunt
Have you played the Magnum Pleasure Hunt?! This is why the internet was invented! This is the kind of execution that comes with true collaboration - I'm guessing from creatives with a digital background, gaming, maybe film and traditional TV. And the idea was potentially seeded by an account planner who said, you know what - girls like intuitive, computer games as well as men, as long as they don't involve guns and gore. And you know what.. they'll like it even more if they get to travel virtually to romantic, beautiful locations and are surprised and delighted along the way. I remember playing the first version of this game and being completely astounded, then looking up who made the chocolate and where I could get it. The only downside is the association with Magnum condoms and pleasure. But then again, most women can easily compare sex with chocolate.Go Play!
How Nike Is Embracing Digital & Social Media - Re-Blogged from Fortune
Nike's new marketing mojo
February 13, 2012: 5:00 AM ET
How the legendary brand blew up its single-slogan approach and drafted a new playbook for the digital era.
By Scott Cendrowski, writer-reporter
FORTUNE -- Few outsiders have visited the third floor of the Jerry Rice Building at Nike's headquarters. Even most Nike employees know little about just what the staffers working here, on the north side of the company's 192-acre campus in Beaverton, Ore., actually do. A sign on the main entrance reads RESTRICTED AREA: WE HEAR YOU KNOCKING, WE CAN'T LET YOU IN, and it's only partly in jest. Inside, clusters of five or six employees huddle in side conference rooms where equations cover whiteboard walls. There are engineers and scientists with pedigrees from MIT and Apple. Leaks are tightly controlled; a public relations man jumps in front of a visitor who gazes at the computer screens for a little too long.
Once upon a time, the hush-hush plans and special-access security clearance would have been about some cutting-edge sneaker technology: the discovery of a new kind of foam-blown polyurethane, say, or some other breakthrough in cushioning science. But the employees in this lab aren't making shoes or clothes. They're quietly engineering a revolution in marketing.
This hive is the home of Nike Digital Sport, a new division the company launched in 2010. On one level, it aims to develop devices and technologies that allow users to track their personal statistics in any sport in which they participate. Its best-known product is the Nike+ running sensor, the blockbuster performance-tracking tool developed with Apple (AAPL). Some 5 million runners now log on to Nike (NKE) to check their performance. Last month Digital Sport released its first major follow-up product, a wristband that tracks energy output called the FuelBand.
But Digital Sport is not just about creating must-have sports gadgets. Getting so close to its consumers' data holds exceptional promise for one of the world's greatest marketers: It means it can follow them, build an online community for them, and forge a tighter relationship with them than ever before. It's part of a bigger, broader effort to shift the bulk of Nike's marketing efforts into the digital realm -- and it marks the biggest change in Beaverton since the creation of just do it, or even since a graphic design student at Portland State University put pen to paper and created the Swoosh.
Nike's new digital hook: the Nike+ logo; the new Nike FuelBand; and the Nike+ SportWatch GPS
Just try to recall the last couple of Nike commercials you saw on television. Don't be surprised when you can't. Nike's spending on TV and print advertising in the U.S. has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year. "There's barely any media advertising these days for Nike," says Brian Collins, a brand consultant and longtime Madison Avenue creative executive.
Gone is the reliance on top-down campaigns celebrating a single hit -- whether a star like Tiger Woods, a signature shoe like the Air Force 1, or send-ups like Bo Jackson's 'Bo Knows' commercials from the late '80s that sold the entire brand in one fell Swoosh. In their place is a whole new repertoire of interactive elements that let Nike communicate directly with its consumers, whether it's a performance-tracking wristband, a 30-story billboard in Johannesburg that posts fan headlines from Twitter, or a major commercial shot by an Oscar-nominated director that makes its debut not on primetime television but on Facebook. Says Jon Bond, co-founder of Kirshenbaum Bond Senecal & Partners who now runs a social media agency: "Clearly they think they can get by without big television campaigns anymore."
The reason for the shift is simple: Nike is going where its customer is. And its core customer, a 17-year-old who spends 20% more on shoes than his adult counterparts, has given up television to skip across myriad online communities. Not only does Nike think it can do without the mega-TV campaigns of old, it says the digital world allows the brand to interact even more closely with its consumers -- maybe as closely as it did in its early days, when founder Phil Knight sold track shoes out of his car in the 1960s. That's a major change, Nike CEO Mark Parker explained toFortune during a recent interview in his tchotchke-filled office in Beaverton. "Connecting used to be, 'Here's some product, and here's some advertising. We hope you like it,' " he says. "Connecting today is a dialogue."
Of course, it's impossible these days to find a Fortune 500company without an app or a social media strategy. But Nike has been lapping other blue-chip marketers in this domain: It spent nearly $800 million on 'nontraditional' advertising in 2010, according to Advertising Age estimates, a greater percentage of its U.S. advertising budget than any other top 100 U.S. advertiser. (And Nike's latest filings indicate that that figure will grow in 2011.) It's hired scores of new engineers to make technology for online communities (Digital Sport has grown from 100 to 200 employees in the past six months and has moved into a larger space on the outskirts of campus). And the brand has overhauled its $100 million-plus campaigns around major events like the World Cup and Olympics to focus on online campaigns first. The result? Before, the biggest audience Nike had on any given day was when 200 million tuned in to the Super Bowl. Now, across all its sites and social media communities, it can hit that figure any day.
That's all the more impressive given that Nike shouldn't be good at this. After a decade of growth, its sales have reached $21 billion, making it the world's largest sports company, a full 30% bigger than closest rival Adidas. But biggest is rarely best in the brand game, where niche players routinely run circles around lumbering giants, especially in the new digital world. Hot upstarts like Under Armour (UA) and Lululemon (LULU) have established fast-growing, cultlike followings, while smaller players like Quiksilver (ZQK) and Vans are already going after next-generation tweens. Even Adidas's 2006 merger with Reebok has created a new formidable global foe.
None of this is lost on Parker. "My fear was that we would be this big blood bank of a company that was dabbling across all these areas and wasn't seen as cool, as interesting, as relevant, as innovative," he says. Not too long ago Parker sketched a big Swoosh being eaten by a dozen Pac-Men to demonstrate how easily competitors could overtake Nike.
Just market it: 7 of Nike's notable campaigns
Like almost every large company, Nike stumbled early in the digital world. In the late '90s it celebrated the start of NCAA March Madness on its home page in every country. Europeans had no idea what was going on. But it improved over the years. Around 2005 its then-revolutionary Nike iD online store, where customers could design their own shoes, became a surprise hit, reaching $100 million in sales within a few years.
In 2006 it started experimenting with social networking and online communities, partnering with Google (GOOG) for a World Cup-related social network called Joga. Then came Nike+. After Nike engineers started noticing everyone on the Oregon campus using iPods, teams at Nike and Apple met to hash out a simple idea: synchronize jogging data with an iPod. Steve Jobs loved the idea (Apple CEO Tim Cook serves on Nike's board, but Parker also had a good relationship with Jobs). Powered by a sensor inside running shoes, the service both monitors a runner's performance and provides digital coaching. A voice lets runners know how much farther they have to go; the PowerSong function generates a musical blast for extra motivation. At the end, it logs details of the workout onto Nikeplus.com, where users can store and analyze the data, get training tips, and share workouts with friends. Whereas Nike's digital campaigns communicate the brand image, the Nike+ platform creates an intimate conversation and a laboratory that lets the company study its customers' behaviors and patterns. The company won't offer financial details about Nike+, but analysts say the 55% growth in membership last year was important in driving sales in its running division up 30%, to $2.8 billion.
Two years ago a group including Stefan Olander, 44, a longtime marketing executive (and Matthew McConaughey look-alike) formally pitched Parker on the idea for Digital Sport, a cross-category division that would take the Nike+ idea -- chip-enabled customer loyalty -- into other sports. Up and running a month later, the Digital Sport division now works across all of Nike's major sports.
A massive digital billboard in Johannesburg asked fans to submit messages.
For all its success, though, a follow-up blockbuster to Nike+ has been elusive. The company has high hopes for the FuelBand, a $149 wristband that measures movement and calculates its user's exertion levels throughout the course of the day. Like Nike+, users sync to the Nike platform online to analyze their results. At the FuelBand's official unveiling in Manhattan -- a splashy event emceed by Jimmy Fallon -- Parker compared it to the launch of Nike Air or the first Air Jordan shoe.
While Digital Sport is crafting gizmos, Nike has also been revamping its giant advertising bursts around major events like the World Cup and Olympics. The highlight of its 2010 World Cup campaign, for instance, was a commercial produced by Nike ad agency Wieden + Kennedy and shot by Babel director Alejandro González Iñárritu. Called "Write the Future," the ad featured Nike soccer stars Wayne Rooney and Christano Ronaldo imagining the riches that come with winning the cup. But instead of making its debut on-air, the ad launched on Nike Football's Facebook page. Wieden and other agencies spent months cultivating a base of 1 million "fans" and teasing the ad's debut. When it aired, it whizzed around blogs and wall posts at warp speed, gathering 8 million views in a week to set a viral-video record.
For decades Nike's closest partner in reaching the masses was Wieden + Kennedy, the famously hip place whose 30-year collaboration with Nike is one of advertising's longest and most prolific. But Nike's digital shift has had reverberations here too. In 2000, Wieden handled all of Nike's estimated $350 million in U.S. billings. Now those campaigns are increasingly split between Wieden and a host of other agencies that specialize in social media and new technologies. In a closely followed dustup in 2007, Nike dropped Wieden from its running account reportedly because the agency was behind in digital efforts. Wieden has added more digital positions to its Nike "platoon." (Wieden reclaimed the running account just 13 months after losing it.) But it now splits billings with agencies like R/GA, AKQA, and Mindshare. "Collaboration is the new thing," says Dan Sheniak, Wieden's global communications planning director on Nike, maybe trying to look on the bright side.
Perhaps the biggest impact of Nike's shift falls to the people whose names adorn every building on its campus: superstar athletes. Consider the controversies that Tiger Woods, Michael Vick, Lance Armstrong, and LeBron James -- Nike endorsers all -- have sparked over the past five years. Industry insiders say the effect is difficult to measure in the short term. But as the marketing mix becomes less about hero worship and more about consumer-driven conversation, they say, Nike is insulating itself from an era of athlete endorsements gone wrong. "Everybody's realized there's not the same one-to-one relationship as in the past: When Jordan's hot, his shoes are hot," says a former Nike executive. "I don't know if hero worship is the same as it used to be."
To be sure, marquee athletes haven't disappeared: Kobe Bryant is arguably the biggest sports celebrity in China, Nike's second-largest market, and Michael Jordan's brand remains one of the company's most powerful franchises. But for the first time in its history, Nike isn't wholly reliant on a handful of superstars to move merchandise.
So is it working? Is Nike's massive digital push a true replacement for its marketing past? Its unconventional approaches have won accolades from insiders. "They have their finger on the pulse of what their customer is looking for," says David Carter, executive director of USC's Sports Business Institute. Institutional investors who pay close heed to Nike's subtlest moves have voted in favor of the changes: The company's stock has returned 120% over the past five years as the S&P 500 index (SPX) has returned just 2.5%.
That's not to say everything has been a slam dunk. Nike shut down its Joga network after the last World Cup game in 2006, confusing the million-plus members who'd signed up for it. Its Ballers Network, meanwhile -- launched in 2008 as an app that let basketball players organize street games -- recently had less than 300 users in the U.S.; a recent wall post was a teenager complaining he couldn't get it to work. And critics say products like the FuelBand and Nike+, while dazzling, are more about keeping Nike's retail prices high than innovating.
In public Nike executives will protest this characterization. But if running shoes continue flying off the shelves, they won't blink at the criticism. That's exactly the kind of shrewd marketing attitude that drove Nike's past success. After perfecting the art of big branding, it's moving on to a world in which its consumers want to be told less and just do more. Which, when you think about it that way, might not be such a big change after all.
This article is from the February 27, 2012 issue of Fortune.
Totally Inspired
So far Summer 2009 is marked by change: New apartment, new roommate, new neighborhood, new approach to life.. and perhaps a new career. I've been seriously soul searching about grad schools and where I want to go with my career, flying on the coattails of my new move. I'm hoping this momentum will also encourage me to tackle my eating habits as well. I'm considering either the BluePrintCleanse or seeing a nutritionist once and for all. My attempt to go gluten free mostly failed although I have cut back on grains. It's hard to give up a major, dare I say, important part of my life without a specific diagnoses. And then there's that whole 10 year high school reunion coming in November. Weight loss and getting in shape is definitely not something you can put off. Boo. But then again, what's a few hundred bucks spent on getting in shape when there's a high school reunion involved. Hmmm.
I digress.
Today I went to a super awesome work seminar led by Niall McKinney, a digital marketing guru. And yes, your suspicious are correct: he is a charming, intelligent Englishman and also the founder of UTalkMarketing, a British company about all things marketing. I'm starting to think that digital marketing is where I'm going at this point. I know, I know. So ADD you say. Well! I can finally now vouch thanks to a recent doctor's visit that no, I am not, in fact, ADD but rather, slightly obsessive compulsive. Hmmph! I don't know how I feel about that diagnoses. But I agree that I over think things and go back and question decisions I've already made. However, I do find it exciting to immerse myself in an industry that's actually growing. I'm sure that if I turned photography into an actual business, I'd lose my passion for it.
That's all. I'm off to read "Anna Karenina" so I can eventually read "The Power of Now," by Eckhart Tolle, "The Long Tail" and "Free" both by Chris Anderson, and finally "Outliers" by Malcolm Gladwell. Phew. Good thing I still don't have a TV but I've gotten by watching episodes of Merlin and The Philanthropist on Hulu. I don't miss the morning shows although it's possible I was on Fox 5 this morning being interviewed by the weatherman? about my choice to buy iced coffee. Oh and eventually study for the GRE's.
On that note. Peace and LOVE.
