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Posted on Feb 29, 2012 at 05:19 PM | Permalink | Comments (0)
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Grant McCracken
Grant McCracken holds a PhD from the University of Chicago in cultural anthropology. He is the author of ‘Culture and Consumption’, ‘Culture and Consumption II’, ‘Plenitude’, ‘Big Hai’r, ‘The Long Interview’, ‘Flock and Flow’, ‘Transformations’ and most recently ‘Chief Culture Office’r. He has been the director of the Institute of Contemporary Culture at the Royal Ontario Museum, a senior lecturer at the Harvard Business School, a visiting scholar at the University of Cambridge and he is now a research affiliate at C3 at MIT. He named the “Diderot effect.” His new book, ‘Culturematic’, will be published by the Harvard Business Review Press March 2012.
1. What do you do?
I am an anthropologist who studies contemporary First World cultures.
2. What gives you the greatest satisfaction in your occupation?
Seeing a cultural pattern I haven't seen before.
3. What’s the secret of your success?
Such as it is, the secret of my success has been looking carefully, thinking hard, and then believing the the outcome of the looking and the thinking. On first glimpse, the future always looks impossibly strange. You have to trust your instincts.
4. Which historical figure would you most like to have shaken hands with?
Sir Francis Bacon
5. Which living person do you most admire?
Steward Brand, possibly?
6. What brand can you not live without?
J. Crew makes all my fashion choices. My wife says this is far better than the alternative.
7. What has been your biggest failure?
I should have started thinking by my own lights, trusting my instincts, taking risks much earlier. I am timid by nature and, also, did I mention I'm a Canadian?
8. Who or what inspires you?
The Times Literary Supplement is just endlessly interesting.
9. What is it that you most dislike?
Nay-sayers.
10. What do you consider your greatest achievement?
Plentitude, self published in 1997. Everyone scorned it. And I mean everyone. Now it looks ok.
11. How must marketing change?
As a creator of culture, marketing was for a long time the idiot brother. Everyone, literature, movies, TV, was more sophisticated. Marketing is getting more subtle, complex and nuanced. Just in time.
12. What work are you most jealous of?
I'm just reading Hitch 22 by Christopher Hitchens. Oh, to have written this.
13. What are you optimistic about?
I'm optimistic about optimism. We really are very resourceful. Things often look grim but I think there's an inclination to assume the worst. I believe ingenuity is staging a comeback.
14. What difference do you want to make?
To help people think about culture.
15. Who is your favorite hero from fiction?
Dr. Who is the present one.
16. Where is there room for improvement?
We all need to learn to live with complexity, it's the signature of our cultural worlds, our social forms.
17. What fascinates you?
The good and the bad thing about being an anthropologist who studies his own culture is that just about everything does.
18. What’s your most hard-won piece of wisdom?
That culture isn't everything, and that I needed to embrace entirely new approaches and methods to begin to capture the rest.
19. What’s the most exciting piece of culture you’ve come across recently?
BBC America is now being carried by my American cable company. Dr. Who, TopGear, Graham Norton! But none of this compares to the riches pouring out of American cable: Nurse Jackie, etc. This is popular culture beginning to look a lot like culture plain and not so simple.
20. What are you reading?
Dashiel Hammet
21. What keeps you up at night?
My Siamese cats who like to drop by every so often to remind me how lucky I am to have Siamese cats.
22. What does the future look like?
As long as it has cats of any kind, we will all be fine.
23. What part of the internet can you not live without?
Aggregators like PSFK and appliances like Tumbler
24. What is your motto?
Try your hardest. Ok, once more, with feeling.
25. What do you most want?
Time and wit enough to keep writing.
Posted on Feb 27, 2012 at 11:32 AM | Permalink | Comments (0)
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“How wonderful that we have met with a paradox.
Now we have some hope of making progress”
Niels Bohr
Technology allows participation
Let’s start with a statement of the blindingly obvious and move quickly on. Technology allows for participation and interaction. It thus follows that creative ideas that wish to leverage technology must find ways of offering participation and interaction.
Cue the rise of the participative idea.
The problem is that there’s scant discussion of people’s actual buying behaviours in all this. For when it comes to participation, while much effort has gone into analyzing people’s digital behaviours, this zeal (and rhetoric) has not been matched by a desire to connect it to - or reconcile it with - an understanding of people’s actual buying behaviours.
Participation inequality
It’s well known that when it comes to people’s digital behaviours, not everyone wants to participate. And that not everyone wants to participate equally.
Most of us will be familiar with the theory of Participation Inequality that states that in most online communities, 90% of users are lurkers who never contribute, 9% of users contribute a little, and 1% of users account for almost all the action. Sadly however, this theory would appear to be as unpopulated with empirical data as Pareto’s Law.
Forrester’s segmentation of online behaviours puts a little more flesh on the bones. This is survey data rather than actual observed behavioural data, but it’s a good start:
We’ve long known that people’s relationship with a brand affects their likelihood to notice communications from that brand, and echoing this is Patricia MacDonald’s rather nice visualisation of this participation inequality and how it relates to people’s relationships with a brand:
So far so good.
However, whilst the language of ‘fans’, ‘community’, ‘relationships’, and so on obscures or denies it, this same participation inequality applies to people’s so-called ‘relationships’ with brands, in as much as:
Most people don’t buy our brand very often
Most people aren’t exclusively loyal to our brand
Most people don't know our brand very well
And this has some significant implications for how we think about participation.
A quick review of the data first.
Most people don’t buy you very often
It is often overlooked quite how infrequently people buy any given brand. Purchase frequencies - even in frequently bought categories - are not high.
The analysis of Nielsen data provided by Professor John Dawes (2011) is revealing. For example, in 2007, Pantene was bought in the US at an average rate of 1.8 times a year. Fructis was bought at an average rate of 1.6 times a year, reflecting the so-called ‘double jeopardy effect’ in which brands with higher shares get slightly higher rates of loyalty.
Irrespective of the category, the shape of any brand’s buying frequencies is a skewed distribution with a long tail. That is, a large number of people buy you occasionally, and an increasingly smaller number of people buy you more often. First identified by Andrew Ehrenberg it's known as a negative binomial distribution (NBD).
Thus, Pantene was bought once by just over 12 million households, twice by about 4 million, three times by 1.7 million households, etc.:
This shape of buying frequencies is the same for Fructis. It was bought once by just over 8 million households, twice by about 2.5 million, three times just over 1 million households, etc.:
Most people aren’t exclusively loyal
Most people aren't devoted to a single brand and are very happy to buy regularly from a range of brands. They have their loyalties. But they are polygamously loyal. And this is reflected in buying patterns - brands share their customers with other brands, and they do so roughly in line with their market shares. Here for example, is Professor Dawes’ (2009) analysis of the UK sportswear market, using data from TNS Superpanel:
Few consumers then, are devoted fans.
Most people don't know your brand very well
Brand knowledge - that is, the sum total of all perceptual associations held by people about the brand - doesn’t appear to be evenly distributed.
Sharp and Romanuik (2008) have looked at the composition of brand knowledge across populations of buyers, calculating the extent of this knowledge using data for 28 product categories and 208 brands.
They found that half of all brand knowledge is concentrated amongst 20% of buyers and the remainder is spread thinly across the remaining 80% of buyers. This spread is the same for big and small brands, and brands with both high and low equity scores.
So it emerges that a few people know a lot about your brand. And a great many more people know something about your brand. Not surprisingly, this distribution reflects the shape of a brand’s user base. A few people buy you a lot. And a great many more people buy you occasionally.
Where growth comes from
The importance of these lighter buyers (who don't buy you often, aren't devoted to you and don't know you well) is further underlined when we look at which consumers matter most to brand growth. As Professor Dawes (2011) shows us, to look like Pantene and get to its size, Fructis would need to recruit 4 million new users who buy it once a year, 1.4 million more who buy it twice, 0.6 million more two buy it three times, etc.:
To grow in other, words, you need to recruit lots more new users who buy you just occasionally. Those light buyers, in other words, do matter.
Trying to significantly to increase loyalty amongst a segment - to seek ‘loyalty beyond reason’ - is a fool’s errand. It would mean fighting the natural distribution for purchase frequencies for any brand. You can't beat the law of double jeopardy.
The difference between big and small brands is not the amount of loyalty they enjoy, but the number of buyers they have - most of whom will be light buyers.
Thus, Charles Graham’s analysis (2010) of six years’ of TNS buyer data in the coffee category demonstrates that although penetration and share values move in line, average purchase per buyer for any brand remains roughly constant:
It’s not surprising then, to discover that analysis of the IPA’s Databank (Binet & Field 2007) demonstrates that advertising is most successful when it seeks to increase penetration, not loyalty:
The participation paradox
So where does this get us?
It tells that a very small number of people buy us frequently, and know us very well. They’ll come into contact with our brand more often. They’ll be more likely to notice our advertising. And they’ll be more willing to participate in our marketing activity.
Equally, it tells us that the vast majority of people don’t buy us exclusively, don’t buy us very often, and don’t know us very well.
And it tells us that significant growth comes not from increasing loyalty but from attracting more people who don’t buy us at the moment. That is, people who don’t know very much about us, don’t have much contact with us, aren’t predisposed to notice our marketing content, aren’t inclined to participate in it, and won’t buy us very often.
So here we have our paradox:
The people LEAST likely to engage deeply...
... are the MOST important for growth
There is a way out of this paradox. But it requires us to embrace two principles:
The battle is for interest, not attention
Recognizing what kind of buyers growth must come from helps us understand that the real battle is not for attention, but interest. Brand growth is dependent on people who don’t care that much about us.
All of this is very different from the mental image of the ‘engaged’ consumer. And while it’s arguably a crueler, more unforgiving world out there than the comforting rhetoric of ‘engagement’ suggests, none of this should prompt fits of morbid anxiety or professional self-doubt. It doesn’t mean that we’ve failed. And it certainly doesn’t mean that what we do is utterly irrelevant.
For creativity of any form needs some form of resistance to ignite and inspire it, whether that’s the resistance of materials, media, form, genre or inherited expectations and practices. And so just as the engraver needs the resistance of the plate, we need the recognition that most people in the real world just aren’t that interested. This, not attention, is the real barrier to our success. And that’s a far, far bigger hurdle to conquer. It demands we find ways of being part of what people genuinely find interesting, rather than merely talk about ourselves.
Fans are actors, not the audience
The recognition that brands aren’t simply built upon exclusive loyalty but are highly dependent on vast numbers of light, polygamous buyers - and that growth comes from acquiring more of them, not increasingly the loyalty of current buyers - puts the role of the ‘fan’ into proper perspective.
While every brand wants some, fans alone are not the lifeblood of a brand. They cannot be the focus of marketing communications if a brand is not to ignore the far bigger populations of buyers who don't currently purchase our brand. Brands need to reach out beyond their fans.
That said, in reaching out to those who are more indifferent towards our brand, fans have another value, and that's their willingness (provided it's worth their while) to participate and share that with a broader audience. If we do it right, they can give us creative material, and they can give us access to their social networks.
Participation isn’t enough
Having a more clear-sighted view on people’s real world buying behaviours and thus which consumers actually matter to the generation of revenue and profit begins to gives us a framework for thinking about participation.
For if we want to survive and prosper from the paradox, then we’re going to recognize that participation alone is not enough:
Going beyond participation: An example
The Nike Chalkbot/Livestrong campaign provides a good example of an idea with participation at its core - but which ensured that participation was amplified to a far wider audience.
In September 2008, Lance Armstrong promised his return to professional cycling following his battle with cancer. He announced his mission to spread the message of Livestrong. Nike heard the call and responded with a campaign that would run during the upcoming Tour de France. The Chalkbot / Livestrong campaign ran from 26th June to 26th July 2009, starting a week before the Tour de France and ending on its final day. It was such a success it made a return to the tour in July 2010.
The invitation (and inspiration) to participate was very public:
"It's About You" films and out of home launched the campaign. On 26th June, a billboard on 7th Ave. announced "It’s About You" to millions of New Yorkers. On the same day, the "It's About You" Livestrong films were launched, broadcast on ESPN, wearyellow.com, and social networking sites
The films ran throughout the Tour de France, and on the final night a primetime broadcast of Sportscenter was taken over. It was an hour-long celebration of the stories and people from the "It's About You" campaign. Over 64 million households tuned in that night.
At the same time, the Just Do It brand spot, 'Driven,' was broadcast on all major networks.
The engaged were given something to do:
Inspired by Tour spectators who chalk the roads, Chalkbot was invented: a new social media tool that collected digital conversations and broadcast them into the physical world, using the road as the canvas.
36,000 messages were collected via Twitter, Facebook, SMS, web banners and WearYellow.com
And over 13 stages of the Tour de France these messages were printed along the road.
But more importantly, their participation was broadcast to a much wider audience:
Chalkbot was seamlessly integrated into the TV coverage of the event, and commentators were briefed to talk about the Chalkbot.
To reward those who'd taken part, participants were sent a GPS-tagged image of their message, as printed on the road.
And on the last day of the Tour, the campaign culminated with a full-page colour ad in the Sunday New York Times. The ad showed Lance's determined face made up of various messages of hope from the Chalkbot.
Obviously it would have spoken most powerfully and immediately to those for whom cancer was a very personal issue. And to those with a passion for cycling. But the marketing programme around the event ensured that its impact was felt far beyond these communities of interest.
What matters most
The purpose of marketing is not merely to secure the attention, participation and purchases of the fans alone. Brands depend on retaining and attracting legions of buyers who don’t know our brand well, and don’t buy it very often.
Participation and interaction give us new and exciting creative material. But while participation can undoubtedly can bring our ideas to life in new, vivid, and exciting ways, the participation of a relatively small number of fans cannot be an end it itself.
So while fans can be contributors to and and actors in participative ideas, ultimately this activity must find and interest the far bigger populations of buyers who have far less appetite to participate deeply but who are the lifeblood of brands.
The rhetoric of ‘engagement’ has encouraged us to think in terms of depth. But reach still matters, and as the Chalkbot example shows, stimulating the emotions of big populations of people does not depend on their active participation. For ultimately mass reaction matters far more than participation.
Sources
Les Binet and Peter Field, Marketing in the Era of Accountability, 2007
John Dawes, ‘Brand loyalty in the UK sportswear market’, International Journal of Advertising Research, vol. 51, No. 4, 2009
John Dawes, ‘Predictable Patterns in buyer behaviour and brand metrics: Implications for brand managers’, in Mark Uncles, ed. Perspectives on Brand Management, 2011
Andrew Ehrenberg, ‘Repetitive advertising and the consumer’, Journal of Advertising Research, Vol. 40, No. 6, November/December 2000
Andrew Ehrenberg, ‘What Brand Loyalty Can Tell Us’, Admap, October 2004, Issue 454
Andrew Ehrenberg, Neil Barnard, Rachel Kennedy, Helen Bloom, ‘Brand Advertising As Creative Publicity’, Journal of Advertising Research: Vol. 42, No. 4, July/August 2002
Paul Feldwick, ‘Rules of Engagement’, Admap January 2009, Issue 501
Charles Graham, ‘Is your brand’s share trying to tell you something?’ Market Leader: Quarter 1, 2010
Patricia MacDonald, ‘Planning for participation’, http://planninginhighheels.com/2011/02/08/planning-for-participation/
Steve Whittaker, Loren Terveen, Will Hill, and Lynn Cherny: ‘The dynamics of mass interaction’, Proceedings of CSCW 98, the ACM Conference on Computer-Supported Cooperative Work (Seattle, WA, November 14-18, 1998)
McDonald and John Scriven, ‘Why marketing needs marketing science’, Admap, October 2006, Issue 476
Byron Sharp, How Brands Grow: What Marketers Don’t Know, 2010
Byron Sharp and Kate Newstead, ‘Loyalty is not the Holy Grail’, Admap, September 2010
Jaywant Singh, Chris Hand, Hsin Chen, ‘Differentiation in a branded commodity category: Tapping into behavioural data’, Kingston University
Posted on Feb 13, 2012 at 01:03 AM | Permalink | Comments (23)
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“Without action, the world would still be an idea”
General George F. Doriot
The old-school charisma of the leading man... the tenderness of that scene with her and his jacket... the luminous, beautiful quality of the whole thing... the choreography of that scene on the staircase... the inspired casting... the joy and revelation of the final scene... And oh, to have a dog like that.
These were the things that we spoke about as we left the cinema one chilly Sunday evening after seeing The Artist. We could have mused about what the ‘idea’ of the film was, or what it was ‘about.’ But we weren’t aspiring film critics or students of art theory. We’d just wanted some Sunday night escapism before the reality of Monday's approach became all too inescapable.
While the analogy between what we make and a piece of art is far from faultless, thinking back on that evening did prompt me to reflect that for all the talk of ‘ideas’ in our industry, they really aren’t for people in the real world at all. They’re for us. They’re for ad- and marketingfolk.
What people experience and respond to is execution.
After all, much of the time, we really aren’t paying that much attention anyway. For the most part, we don’t regard as learning about brands as very important. Brands and their expressions are just part of that endless torrent of thoughts, images, events and feelings that make up our taken for granted world.
Certainly we don’t consciously process most advertising as verbal or factual messages. But we do consume its codes and signals. All the imagery, sounds, symbols, music, references and so on of creative content are not merely tricks designed to draw attention to our message or to make it memorable. They are the communication.
And as Robert Heath has shown in his work on low involvement processing, while we absorb this stuff, we don’t think about it.
In this context, we’re hardly inclined to ponder what the ‘big idea’ is. While we might agonize over them in marketing- and adland, in the real world we don’t experience marketing content as abstract ideas.
People didn't get excited by the intellectual idea that footballers have the chance to make history at the World Cup. They got excited by an epic piece of film that brought that idea to life with flamboyance, scale, wit, star players and pop culture references a plenty.
Execution is what stirs the emotions, excites, intrigues, and ignites desire.
This is not to say that the idea is entirely redundant.
It's always great to have great content, but as our Amanda Feve put it recently, if you can't articulate the idea behind it, it's hard to turn it into a multi-channel, multi-platform, multi-country, multi-agency campaign that feels like it's all come from the same place.
That doesn't mean that you need to get too precious about it, just that you need to be able to articulate what the idea is.
In other words, ideas are a way we use to inspire, manage, marshall, and co-ordinate our efforts and end creative content. Having an idea ensures that what we do hangs together, that successive expressions of it build on and refresh people’s memory structures.
Those of us not charged with the hands-on act of creating can be (for better and for worse) comfortable in the world of abstraction. So the recognition that in the real world people don’t consume or ponder the abstract but experience the real and the visceral, should sound a warning note that we not get too caught up in the theory and abstraction behind the work.
Certainly we should invest time and energy thinking about the idea. It is what gives it shape, coherence, and consistency over time. And in as much as brands are merely patterns and networks of associations in the mind, all of these things matter a great deal.
But if we allow ourselves to become divorced from the execution (or allow others to divorce us from it) then we become separated from the very thing that people experience.
For strategy isn’t theory, abstract and intellectual. It’s real and visceral and tangible. It is nothing more than a series of coherent and coordinated actions. And we should never be content with merely painting the outlines of an abstraction. As the General said, "Without action, the world would still be an idea."
Sources
The brain of Amanda Feve
The Artist, dir. Michel Hazanavicius (2012)
Posted on Feb 06, 2012 at 10:05 AM | Permalink | Comments (2)
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Jonathan Mildenhall
Vice President, Global Advertising Strategy and Content Excellence
The Coca-Cola Company
@mildenhall
Jonathan Mildenhall joined The Coca-Cola Company in December 2006 and is responsible for leading global creative vision and strategy for the Company’s portfolio of global brands. In his role, Jonathan oversees marketing communications strategies, core creative idea development and content production.
A self-proclaimed “diagonal” thinker - someone who excels at both left and right brain thinking - Jonathan has a big passion for popular culture in addition to a passion for business strategy. In 2007 Jonathan was awarded an honorary Doctorate in Business Administration from Manchester Metropolitan University. Jonathan lives in Atlanta with his partner Mirco, a Human Resources professional.
1.What do you do?
I am head of global advertising at Coke. I love.
2. What gives you the greatest satisfaction in your occupation?
I get to work with some of the world's most talented creative minds and apply them to some of the world's most powerful brands. I learn constantly.
3. What’s the secret of your success?
I constantly re-stage and upgrade my ambitions for our brands. I am only interested in developing the world's most compelling content. I try to be a great partner at all times. I try to keep things brutally simple.
4. Which historical figure would you most like to have shaken hands with?
Dr Martin Luther King or Queen Elizabeth I
5. Which living person do you most admire?
My mother. Then my mother. Followed by my mother.
6. What brand can you not live without?
Coca-Cola
7. What has been your biggest failure?
I haven't yet cracked the creative code on Sprite.
8. Who or what inspires you?
The voice of Whitney Houston.
9. What is it that you most dislike?
Bright people who make things complex. Creative people who make things dull. Processes that do both.
10. What do you consider your greatest achievement?
Keeping a sense of honesty, humility, integrity in a world that works against such core values most of the time.
11. How must our industry change?
We must become more dynamic, more innovative, more disruptive, more open, we must share thought-ware more frequently, we must develop new measurement methods, we must remain confident in our value and, finally, we must encourage individual characters to develop.
12. What work are you most jealous of?
Er, Heineken and bloody Nike - WIEDEN+KENNEDY
13. What are you optimistic about?
My love for Mirco, my heaven.
14. What difference do you want to make?
I want to write books on the power of creativity. I want to inspire people to dream and help them realize their dreams. I want to be studied in the classroom. I want to help make people happy.
15. Who is your favorite hero from fiction?
James in A Million Little Pieces
16. Where is there room for improvement?
I am a work in progress. Personally and professionally. I have to constantly improve. All aspects of my intellectual, emotional, spiritual, social and creative self. I stop improving only when I die.
17.What fascinates you?
Ideas. Creativity. Energy. Emotions. Female voices. Pregnant women. Stories.
18. What’s your most hard-won piece of wisdom?
“Jonathan, you will never get into advertising. Advertising is a white, middle-class industry. They only recruit from Oxbridge” said my careers counsellor at Manchester Poly in 1988.
19.What’s the most exciting piece of culture you’ve come across recently?
The Sundance Film Festival. I was lucky enough to be asked to take part in a panel discussion there. The people I met, the work I saw, the ideas I will realize, quite frankly blew my mind.
20.What are you reading?
Out Of Our Minds - Sir Ken Robinson. I want to grow up to be Sir Ken.
21. What keeps you up at night?
I have been given such a tremendous gift. I mean I get to play on this amazing stage, with some amazing people and do work that truly makes a difference all over the world. I lay awake thinking, shit, there is so much to do and I have only just begun. An opportunity I will not waste.
22. What does the future look like?
A house in Ibiza, an apartment in London, Mirco, my friends, my mum and Brian (they will always be inside of me) and lots of invitations to help people figure shit out.
23. What part of the internet can you not live without?
Currently Spotify. It has transformed my relationship with music. Although, at the same time taken a little bit of dollar value out of the industry as I buy a fraction of what I used to. I am concerned about that in the long term.
24. What is your motto?
Never give up. And. I love you shithead.
25. What do you most want?
Good health for all those I love. If you have good health you can figure out everything else.
Posted on Feb 01, 2012 at 01:02 PM | Permalink | Comments (0)
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