5 Challenges for Marketing In the 21st Century

Attention Deficiency
 
 
First there were letters, then came emails, then text messages and twitter. Our patience for longer communication has dwindled both as senders and receivers. Newspapers and long opeds have given way to snappy blogs and bullet point memos. Videos have replaced text, and short videos have replaced the longer formats. You get the gist – we are increasingly in an attention starved economy. 
 
Attention is fragmented, fleeting, and in generally small supply. Hyperactivity has been known medical problem for ages, but it was in the 1980’s that the condition was prefixed with “attention”.  The double whammy here is that even as attention grows more precious, the volume of noise keeps going up, so finding the signal becomes even harder. So what little attention we have, we must guard zealously. 
 
This is marketings first big problem. Marketing and advertising, as we know it today, is a hundred years old. It is no longer fit for purpose. Creativity in capturing attention still gets headlines, and this won’t change, but the goalposts are shifting constantly and the new rules are yet to be written. 
 
Google adwords seemed to provide some answers, but I think that our general mistrust of marketing messages cripples the value of adwords. We have all become experts in tuning out ads. Banners on pages, full page spreads in magazines, spots on television (usually coinciding with tea-making or a trip to the toilet), or ebook ads in Kindle magazines which you flip through with barely a thought. 
 
As a marketer therefore, your first challenge is getting through the noise, the fragmentation and ephimerality of messages, and actually register on the audiences attention span, without spending a kings ransom in the process. Especially if you’re not an already established and known brand. 
 
Every once in a while I notice a piece of marketing communication for a product that I’ve never heard of. But it’s almost always in a category I’m already interested in, and often filtered via friends feeds (FB/ Twitter etc.). I signed up for Carbonite, the online data back up service after I heard their ‘ad’ on a podcast – it wasn’t a traditional ad but the host of the talk show talking through the benefits of the product in a related category to the ongoing discussion. This morning I watched an interesting and interactive Honda ad because somebody posted it on Facebook. The last time I was actually influenced by a TV ad was …  er… I don’t remember really. 
 
Wanted: Action
 
Let’s assume you’ve actually solved the first problem. So you have my attention – perhaps for 15 seconds. Perhaps even 30. The next challenge is getting to action. What are you going to motivate me to do?
 
Historically, advertising and marketing spends have fallen into clear categories – strategic or branding type communication, intended to create a longer term desire; and short term tactical spends, intended to create an immediate sales boost. The latter typically comprising offers, coupons, and other enticement to act now. 
 
The first problem here, is that in the attention deficiency model, everything is about NOW. It’s either now, or it’s gone. (I’m stretching the point here, but this is generally the trend). If I’m not in the market for a car, you’re wonderful car advert is not likely to register beyond a point. Because I know that when I do want to buy a car, all the information in the world will be available. 
 
I’ve written before about the telescoping of the AIDA cycle. Awareness, Interest, Desire, Action – the 4 stages of classic marketing & sales. I call it the “Shazaam” effect, after the app. From never having hear a song, we can now hear it, like it, identify it, want it and actually own and download it in about two minutes. This process in the past, woud require you to hearing the song on the radio, finding out the name, going to the store, deciding if you really wanted to spend money on the whole album, listening to the other tracks, and finally taking the plunge. On average that could be weeks if not months, with a high probability of dropping out of the process altogether. It’s not just digital goods, you could pass a shop window, like an item, check it out online with your phone and order it – again, the process would take a few minutes, if the retailer made it easy to do this. 
 
Most ads today do not have a compelling call to action. This doesn’t necessarily have to be an action to buy, it could be an action to save, highlight, wishlist or read later. Most digital publications allow you to do this with your content. Why not with your ads? Why can’t I click on a car ad and save it for later, because I do want to buy it next year, but this model looks interesting. Or tag the ad? All of this is for enabling future searchability. 
 
The other implication of this is that the secret sauce for advertising and marketing messages may well be getting your attention when you’re looking to buy the product. Not dissimilar to point of sale advertising, but more like point of time advertising. This is all about context. It involves being able to pick up on cues based on opt-in analytics that allow me to tell you about a cycle when you’re looking for a cycle. Sadly, what we have today is that when you search for a cycle, you are guaranteed to see cycle ads for the next 4-6 weeks, even though you bought the cycle in week 2. It’s a blunt weapon that needs a lot more finesse, though it’s probably heading in the right direction. The problem  is that I tell Google that I’m looking for a cycle, but I tend to tell Facebook about my adventures on the bike. May be sharing my ride pictures on Google plus is a good way of telling google to stop selling me cycles. 
 
Media vs The Message 
 
The media industry is probably the hardest hit by these technologies. Audience fragmentation, disintermediation and ever lower barriers to entry have caused havoc in the business. The television industry would have us believe that people still watch as much TV but I would suggest that the quality of viewing is dramatically lower, i.e. it shares your attention with your smartphone and your other chores, and in many instances has become a truly passive experience. Which is bad news for brands and advertisers looking to grab your attention. Newspapers have also down and out and the few who have successful digital editions are enjoying a new life, but advertising models continue to be experimental and much less lucrative. Google adwords have been a moderate success in terms of click throughs and paying for results, but it’s not the answer to all marketing problems. 
 
From a marketers’ perspective, the gravy train has vanished. There was a simple equation – you spent your money, you got onto the most popular TV shows or major newspapers’ front pages and you could launch a product nationally and get decent outcomes. Today’s marketing manager has to consider direct (website/ app) vs indirect channels; digital vs traditional media; multiple options within digital media including banners, innovative banners (with video, for example), ad-words, SEO, and a host of new options such as ambient screens, and digital point of sale. You also have to worry about attribution modelling and manage your spends in near real time. Agencies are starting to make money of trading desks, using algorithms not dissimilar to share trading. 
 
Increasingly the smarter brands have tried to make their message the story, rather than an interruption. Coke, Dove,  and Red Bull are brands that have tried to do this. 
 
 
Morphing Aspirations 
 
It’s also worth asking the question – how have our aspirations changed? In the increasingly global and multi-cultural world, there is a certain level of fragmentation of aspirations too. Only 44.9% of London’s population is white British. Even in 2007 there were apparently over 50 non-indegenous communities with over 10,000 population each. 
 
The implication of this is obvious – as populations go less homogenous, so their aspirations, needs, habits and buying cues. Everybody knows the story of the 2 elderly white men both rich, born in 1948 married twice, holiday in the alps and fond of dogs. One is Prince Charles, the other is Ozzy Osbourne. How then do you attract the housewife of Indian origin who loves popular psychology, with the rock climbing single hungarian girl who wants to work for the police? Both of them may be  24, female, living on in the same post code and searching for psychology in Google. 
 
The challenge is not just analysing and deciphering these ambitions, it’s the need to deal with such a vastly diverse array of ambitions. And ambitions that will themselves morph and blend in cultural melting pots. How do you sell an aspirational product when there is no consistency of aspirations, without boiling it down to economic ambition as a lowest common denominator?
 
 
Trust Erosion
 
Who do we trust? Not the government, not large enterprises, not banks or telcos, and not Google or Facebook. Yet. we trust the feedback of strangers on recommendation websites. However, you still wouldn’t trust a random stranger to provide you with broadband services, find stuff on the internet quickly, or hold your savings for you. Trust therefore has many facets. One of them is competence, another is ethical. In earlier (and perhaps more naive) times, we tended to combine them. Now, with the free flow of information we know better. 
 
Opinion may vary about the competence of banks, but you would still trust the bank with your money because they have demonstrable competence. Also because they are regulated. So while we don’t trust governments or banks, we may find that the combination provides us a trustworthy outcome. 
 
Why is this important to marketing? Well primarily because trust is the basic currency of all communication, and consequently, for brand creation. Without it, you may as well flush your money down the toilet. So the question then is do your customers trust you? And how do you establish and build this trust? And given that we live in a low-trust environment, this may be the first and most important bridge to build. 
 
 
A Quick Checklist 
  • Make the message the story. 
  • Be contextual in the positioning of your message 
  • Create actions in your messages – not just ‘buy’ actions 
  • Understand aspirations from a cross cultural perspective
  • Own your communication and include direct to customer channels 
  • Build a strong trust bridge before sending the marketing cavalry across it
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10 Talking Points From the Mobile World Congress

1. Wearables are evolving fast. 

Almost as visible as the new smartphones, was the Samsung Gear 2 smart watches.  There has been much talk about wearables, but this is a big step forward for a number of reasons. The device features are themselves noteworthy, for example the curved AMOLED 1.84 inch screen. But also the focus on healthcare and wellbeing is clearly taking on the market so far dominated by Fitbit and JawBone. The changeable straps provide a nod to fashion, and under the hood, it has a Tizen Operating system, which itself comes from a family tree of operating system innovation from Nokia, Intel, Samsung and the Linux foundation.

The programmability of the device will no doubt provide a slew of clever applications, which will take away the oh so onerous effort of taking your phone out to answer calls, check emails, or even do video calls. The Gear Neo 2 has a 2 MP camera and even a remote for your TV. 

It doesn’t stop there. We also saw t-shirts that can monitor heartbeats while you run, and smart gloves from Fujitsu with which you can point to things and using AR glasses, get more information about them. The Sony smartbands are certainly eye-catchinly stylish. 

But for me, the next wave of innovations will be the one to watch – when the open systems in wearable devices allow swarms of innovative developers to create entirely new ways to use wearables, in ways not even thought of yet. 

 

2. Ecosystem Conference 

Ginny Rometty, the IBM CEO, accurately called this an ‘ecosystem conference, more than a mobile conference’. Increasingly, it’s hard to separate the components. Cloud, Mobile, hardware and software, middle layer and front end tools, wearables, watchables, eatables, sensors, all the boundaries are getting blurry. Moreover, the value delivery is via the ecosystem, rather than any individual layer. 

This means that solutions thinking needs to span the ecosystem and not focus on any one layer alone. This in turn requires a number of related competencies to be brought together in one place. 

Seems like an obvious point but you’d be surprised how uncommon this common-sense is. 

 

3. Telcos in the services game

Telcos have been the perennial bridesmaids in the IP enabled world. All the value created by World Wide Web, VOIP, messaging, OTT TV and other innovations have stood on the shoulders of telecom networks, yet Telcos have seen little of the value. A part of the reason could well be that Telcos have wanted to get rewarded for being structural enablers, rather than end-service providers. 

The penny seems to have dropped, though as evidenced by the number of Telecom providers, especially in the APAC market, who have end user services built around innovative and mature smart systems. These are, importantly, not sold as technology but as services. NTT has a “Cow Birthing Service” built around monitoring body temperatures of pregnant animals, and alerting the right time for delivery. 

 

4. Old Media left behind?

Tucked between the presentation from Cisco and Shazaam, was a presentation from Bob Bakish, from Viacom. It was a very good presentation underpinned by a well thought-through content strategy, yet it felt like we were being dragged back into the past after being shown a vision of the future. 

I couldn’t put my finger on it for a while, and then it dawned on me. This was a good old-media presentation but it missed the transformation to services, analytics and interactive thinking which now characterises most successful and evolving digital media businesses of today, such as Netflix. 

 

5. Dealing with intelligent worlds 

It is no longer a big shout to suggest that the world is becoming more smart, programmable and intelligent. But perhaps our ability to deal with smarter environments is not yet developed to the extent required. This could impact privacy, security and many other areas. 

It could also make a difference to how well we’re able to extract the maximum value of our smart surroundings. Mark Zuckerberg spoke about the need to connect the whole planet, and called out the fact that many people don’t see the value of the Internet, so they don’t know why they should invest. Similarly, how many of us are really equipped to deal with a smart city or a smart environment in the optimal way? 

 

6. Yet another phone? 

Samsung switched strategies to launch the S5 at the MWC. There was also the wearables, and a few other interesting phones – the Yotaphone and the BlackPhone for starters. But there seems to be a level of fatigue with more marginal improvements. We’re going to need some truly disruptive innovation to get excited about smartphones again. 

The S5 has biometrics, the latest connectivity tools, and more megapixels than you can count on your fingers (16 to be precise). The most interesting feature of the S5 may be it’s power saving feature – when the phone is down to the last 10% energy, it has the option of switching to black and white and shutting down a lot of power consuming services, to extend the battery life by a few hours. 

 

7. Shazaam’s next trick. 

It could well be Shazaam that changes the TV advertising landscape going forward. Having solved the “what’s that song?” problem, and having turned it’s attentions to identifying television program, Shazaam is now offering a way of engaging with ads. When the app recognises the advertising, it offers ways in which you can engage with the ad – through a number of ways, over the phone. 

By ensuring that it is connected to the advertising on TV, there is a clear element of triggering the engagement. A number of questions will still need to be addressed, but by making it easier for consumers to engage, which is the problem Shazaam solves, this could be the way forward for interactive advertising. 

 

8. Innovation & Value 

There is much talk about innovation in the mobile environment in general, and especially at events like the MWC. But it’s harder to identify where the real value lies, versus where there is just an interesting app. Messaging may not be new and exciting, but continues to attract gravity defying valuations. What is innovative about mobile messaging in 2014? Yet, some 200 million (400 m if you go by Whatsapps December announcements) are using the service every month. 

The trick may be in simplicity. Whatsapp does not try to do anything apart from helping you message and talk to your friends and it doesn’t get in the way of the communication. Much like the early Twitter. The question of course is what happens now and how do you monitise this? 

Jan Koum, the founder suggested that Whatsapp will go after voice, with the same simplicity and customer focus. Who knows, may be video is next? Skype beware! 

Meanwhile other clever apps like CamMe (use a hand gesture to take better selfies) and Brewster (combine all your contacts), and Blippar (augmented reality using Google Glass and phone) made headlines. Their commercial value remains to be seen. 

 

9. Marginal innovation in payments 

I did go to the MWC hoping to get a glimpse of the future of payments. But I came back having witnessed only marginal innovations and the industry essentially shuffling it’s feet, waiting for a big move from somebody. 

That somebody might be Apple, who have over half a billion iTunes users with credit card information, an app to enable purchases through this environment (Apple Store App), about $150 bn in cash reserves, and some pending hardware patents for payment related areas. But of course this is not an MWC story, as Apple were only there in spirit. 

 

10. Architectures not clear yet 

John Chambers spoke about the critical need to get the architecture right, in the new world of digital services. The challenges is that as new technologies give rise to newer innovations and as sensors, wearables, mobile and web technologies collide to create new ideas, it’s quite hard to figure out what this architecture should be. Clearly something scalable, modular, service oriented, and capable of serving and receiving information from this array of end points is a must. And to bind all of this to some enterprise grade system of record. Easier said than done, methinks.