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Oct 10, 2011

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I think utility is being used in the industry debate as a quite stretched concept.

In Yevgeny Zamytin’s dystopian novel “We” http://en.wikipedia.org/wiki/We_(novel), he describes a future in which everyone is assured the necessary nutrients (in the form of a bland petroleum-based derivative) and shelter (a small glass-walled cubicle furnished identically for all) to maintain life. The result is that everyone has their physiological needs satisfied, but that they simultaneously all feel suicidal.

Things that are merely useful, and which have no badge value / no meaning / no magic command no price premium.

Nike+, lovely though it is, is about 98% badge value and 2% useful (exact figures open to debate ;-)).

If this weren’t so it would be sold at bugger-all price premium like electricity or potatoes.

Utility - the purely practical – makes living possible, but it’s the combination of private pleasures, and what we do – the magic – that makes life worth living.
And that’s why it alone creates a price premium

I think as an industry we should be taking about this a lot more.

I'm giving an internal presentation tomorrow on this very topic, unbelievably timely. I've been debating how to cross the perception chasm here to get this point across and you just did it for me, and much better than I could have.

Thanks for helping me go home early today ;)

Awesome, John... glad you got home early!!! And hope the presentation goes well!

David,
The Yevgeny Zamytin (my shame for not having heard of him) is brilliant. Will pick up a copy immediately. Many thanks for that great reference!

Speaking as a 'digital person', I found this very refreshing.

Regardless of whether your motivation is genuine usefulness or communication, successful branded utility relies on being able to understand what role your brand can credibly play in someone's life.

It's credible for Nike to create Nike+ because of the equity they've already built in the brand around running and personal achievement.

Conversely, while I'm happy to eat Heinz baked beans as part of a fry-up, I wouldn't download a Heinz recipe app so I could feature beans as a core ingredient in everything I cook.

Sounds silly but I actually came across a recipe card for baked bean pizza in the supermarket the other day...

I agree in spades.

Branded utility is another tool we now have at our disposal to influence people's thinking about the brands we work for.

It's just as easy to make crap Utility as it is to make crap Content or deliver messaging, err... craply!

So it's a bit simplistic for anyone to say utility is a better than content or messaging... there's still the HUGE matter of doing it well - I suspect these people are wilfully comparing an awesome app to a shit ad!

Personally, I only argue for Utility when talking inside the confines of a platform; e.g. iOS... which is, first and foremost, a utility platform. Here, it makes sense to deliver utility (although it's also good for content too). Just like you COULD stitch together lots of YouTube videos using their clickable captions to make a video recipe book IF you wanted... it's just not the best platform for Utility; it'd be more suited to a one-off awesome video of Blumenthal or someone cooking with grenades.

I also don't think it's about a straight choice between Utility and Magic... really, really awesome Utility should also be Magic. i.e. the IDEA for the bit of Utility should be inspiring, the UX should be joyful, the copy should be captivating... even if the app is firmly in the "hassle saver" category, we should still be aiming to make the experience magical.

Finally, I see WASTING TIME & DISTRACTION AS FORMS OF UTILITY that brands can provide anyway... Angry Birds is a really, really useful way for me to not shout at tourists when I'm on the tube, for instance. So in this sense, the pointless and frivolous is genuinely useful anyway.

Rob,
Tons to think about in your comment!
I think you're spot on when you say that "awesome Utility should also be Magic. i.e. the IDEA for the bit of Utility should be inspiring".
And I love your defence of the pointless and frivolous. They're just not taken seriously enough.

Hello Martin,
this is a great post. It already proved very useful in starting a discussion with a couple of people. I hope it was ok for me to ask you a couple of related questions via facebook-message, as I couldn't find an email adress on the blog.

Cheers
Thomas

Thomas... pop the questions up here... good to keep the conversation going...
cheers,
M

One would expect the digital agencies who are leading the charge for utility would have a better grasp of internet culture. They are missing the point about all the addictive, exciting but utterly useless content that makes the internet such a wonderful place. Especially when much of the stuff people actually spend time with and share is addictive, exciting but utterly useless.

But the real issue may well be the eroding belief in brands within the branding industry. And that's both strange and alarming. We are building branded utility when we should be building brands. And along the way we forget that the greatest contribution of a brand is to transcend intrinsic value through stories, myths and imagination.

Hello Martin,
Well, I have a few questions and thoughts that have been brewing recently, and not all relate to utility, but in general to the assumptions and models behind our work.

I'll try to structure them to make any sense, but the issues are interrelated.

First of all, advertising processing and effectiveness.
Having read Sharp's How Brands Grow and Ehrenberg's work on advertising's role as producing salience (or popularity) for a brand I was wondering how this contrasts to Heath and Feldwick's research on low-involvement or low-attention processing. Specifically Heath points to more attention being bad for advertising effectiveness (http://herd.typepad.com/herd_the_hidden_truth_abo/files/heathrobertjar12_06.pdf), Sharp however is strongly opposed to this, while agreeing that the reality of advertising is one of low-attention. I wonder if this is merely a misunderstanding. That Heath/Feldwick think more cognitive, 'rational' attention is bad, while more emotional processing is good and over time produces brand salience, regardless of the verbal message.

Another topic is advertising effectiveness in relation to herd thinking by Mark Earls. Mark interprets Ehrenberg's position on advertising as a means to create 'popularity' more from the lens of society and argues this is often created through copying, again often regardless of the content of the message. Sharp said in reply to my questions that 'while some behavior spreads via copying or is reinforced by copying, it's not an explanation for the Double Jeopardy law, or Dirichlet patterns or the example of Coke buyers sometimes preferring Pepsi in taste tests'. I was wondering how you'd position social influence along the advertising effectiveness thinking of Ehrenberg as it is a weak force in Mark's thinking. (My position is that you also learn para-socially via media ...)

The third topic I have in mind is that of the symbolic meaning of brands. There is tons of very convincing research from Goffman to McCracken, Holt and others suggesting that brands have symbolic meaning for people – and you refer to that here – but doesn't Sharp dismiss this when it comes to branding and consumer behavior? I was wondering about your point of view on this.

My problem is that I think all of their research makes sense, and they talk about the same complex phenomenon from a different perspective. Heath and Feldwick talk about mental structures being built by emotions resulting from low-attention advertising, Sharp talks about mental structures being built by - well - advertising and branding, with the message (and symbolic aspects of it?) negligible but attention being important. Earls talks about mental availability based on social learning which is supposed to be more effective than advertising. And still, there is the question of effectiveness between these three approaches.

Does anything I write here make sense?

Hi Thomas,

I think answering all very valid the issues you raise would be a full time job in itself, so I hope you will forgive me for not addressing them all in detail.

Besides, I can hardly claim to have all the answers. Just a few opinions. Though my own personal view is that all these positions are not as irreconcilable as they might seem.

I did just want to pick up on your last point though. I think our industry has systematically and consistently over-estimated the degree to which advertising works through the 'communication' of 'messages'. And it's tedious how many presentations you see that claim the 'era of 'messaging is over.'

We never lived in the 'era of messaging'. Most advertising never worked through the imparting of messages, but through the creation mental associations.

Hi again,
less irreconcilable as might seem is already great as a response... My own point of view is that they are not opposing. I was just wondering about your perspective, specifically on herd.

As for the 'era of messaging' I - obviously - absolutely agree.

Beautiful post. And great Q´s Thomas.

"We never lived in the 'era of messaging'. Most advertising never worked through the imparting of messages, but through the creation mental associations."

Yes, but since the marketplace has fundamentally changed the last decade I find it hard to support TV ads alone when cases show - also through Binet & Field ´s work - that with 3.000.000.000 new participants in the media landscape - it would be crazy not to support an activation in social media as well.

Cadbury´s Gorilla TV film based on a strategy with focus on being talked about following a stated ideal of LOVE. It was magic. And it delivered financial impact. It was creating 600% increase in buzz. But if this was launched today, 2011. Fuck me, pardon my french, it would have taken off. And my 2 cents is that the financial impact would have been greater.

Yes, Nikeplus has 2 mill. How many are those friggin FB wall posts, giving me a bad conscience but thats another discussion, reaching in total. Everyday. Yes, NIKE needed to build awareness, might not need it as much anymore - but a combo is still necessary between advertising in massmedia and activation in social media. They were just in the position, 2005 - 2009, to decrease trad spend with 80% and increase digital investments with 200% (UK) . They still try to balance.

Pepsi´s refresheverything. Ouch. Surpassed by Diet coke as #2 for the first time in history. Is it a TV brand. Yes, would many say. I say both. They need to combine both advertising in massmedia and activation in social media. And they do now. They invest and launch refresh worldwide + jump onboard TV again. Nevertheless, what Pepsi lacks compared to Coke, except for better taste ;) is a clear big ideal.

My point for this rambling is probably already obvious.

1. The bigger and better the ideal - the bigger growth.
2. Execution needs to be... magic. But can combine both mass, social and utility.
3. Cause the combo of advertising in mass media and activating in social media is key - based on how the world is as of today. Tomorrow - who knows...

Did you read it all, wow, thanx for your time. I´m heading out for a beer. Well uhm, actually IKEA with my pregnant girl....

Have a great day!

Refreshing, beautiful and overdue.
And please keep up the shoutiness, complacency is rife.
As you know, I wrote something very different but in service of the main point. Wish I'd written this.

Mr. Northern,

That's incredibly generous, mate. Thank you.

I guess we all have to find our own voice. I'm afraid I can only write out of indignation.... Though I'm not sure how much more there is that irks me enough to write about.

What other balloons of complacency and silliness need bursting, do you think?

Where does one start..........
It might follow on from exploding the loyalty myth AND targeting myth, but exploring the uselessness of CRM and direct would be interesting.
I wonder what you make of the obsession to be entertaining and 'create culture' without the rigour of being relevant and/or credible

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