Babelfish Articles Oct 2011

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  • 1. Babelfish Articles October 2011 Brian Crotty Babelfish.Brazil@gmail.comArticles that caught my attention this month
  • 2. Index1. Apps Become Mainstream In Brand Building2. What Will Media Advertising Look Like In 20203. Online beats TV for ROI: study4. Big brands embrace apps5. Advertising Companies Fret Over a Digital Talent Gap6. Yammer Adds Badges And In-Line Videos To Enterprise Communications App7. How to Bring a Magazine to Life Online8. Anatomy Of An Agency Infographic9. Is Social Buzz Boosting TV Ratings?10. Engage Your People11. Web Influences Trillion Dollar Retail Sales12. Eighty-six % of In-store, retail buyers search on generis verses branded keywords13. Marketers: Post After Hours to Get The Most Out of Your Facebook Posts14. APAC companies closing social media gap15. McCann cuts jobs as CEO predicts death of agency model16. Beware the Digital Disruptors: They’re Coming for Your Industry17. Location-Based Marketing Is Changing Everything18. How Non-Social Publishers Are Benefiting From Social Video Advertising19. DEAR AMERICA: Its Time To Say A Big "Thank You" To Amazon20. Collateral Material Critical To B2B Technology Purchase21. Social Consumers and the Science of Sharing [INFOGRAPHIC]22. CMO - The Chief Modeling Officer23. The Most Dangerous Phrase In Marketing24. Attribution Science: Blondes, Brunettes & Non-Converters25. How Recruiters Use Social Networks to Screen Candidates [INFOGRAPHIC]26. Moving from Transaction to Engagement27. Battle For Aisle 1228. Dont Bother Wowing Your Customers29. 2012 Digital Planning Guide30. DM9 lança Núcleo de Inteligência e Performance31. Email + Social Integration: More Useful Than A Holy Grail32. 3 Types of Mentoring You Should Offer33. The Rise of Cross-Channel UX Design34. "Cool." Thats the only thing Steve Jobs ever said to me.35. The Secret to Dealing With Difficult People: Its About You36. Stop Procrastinating...Now37. Red Bull Formula Face usa facetracking38. Behind the rise of Jeff Bezos and Amazon:39. Intels Guide to the Future40. How Facebook’s New Features Will Affect Digital Marketers41. Branded Content Brings Ashton, Demi, and Tyra to Online Video42. How to Build a Social Business43. How to Effectively Scale: 5 Steps From an Insiders Perspective44. TV ads give best results: study45. CMOs On Social Media: Do As I SayBabelfish Articles Oct 2011 Page 2
  • 3. 46. What Venture Capitalists Are Seeing47. Fred Wilson Explains Why Most New Angel Investors Are About To Get A Seriously Rude Awakening48. Unified Marketing - Going Beyond Integrated Marketing49. Auto brands must go digital50. Social Business Is No Longer Optional51. Marketers face new tests52. Perspectives on The New Facebook: Part 153. Perspectives on The New Facebook: Part 254. Perspectives on the New Facebook: Part 355. Welcome to a paradoxical new era for business.56. Questions for Matt Spiegel, Digital Agency Vet and New Chief of Tap.me57. The Straight Story on Display Auto-Optimization58. What To Say On LinkedIn When Youve Been Laid Off59. Do You Know What Good Looks Like?60. 7 Reasons Why Recruiters Like Facebook More Than LinkedIn61. 5 Things to Do Every Day for Success62. Would Don Draper Be Relevant Today?63. Report: Ad Networks Raking in More Display SpendApps Become Mainstream In Brand Buildingby Steve Smith, Yesterday, 5:05 PMAfter a rocky start when costly and pointless “branded apps” seemed to be the rule in the early days of the iOS AppStore, many leading brands have settled into a routine of leveraging mobile applications as a part of their overallpromotional strategy. According to the latest report from app metrics company Distimo, the share of top 100 brandsrepresented in at least one mobile app store has grown from about 50% in March 2010 to 91% in September 2011.The company notes an explosion of growth in this area just over the last six months. In March of this year, Distimocounted 1,631 apps available across app markets from the top 100 brands, but in September that count had leapedto 2,343 apps.Disney and its many licensed properties across movie promotions and games leads the list by a wide margin with 636apps, followed by Sony with 285. Much of Sony’s presence includes movie tie-ins and promos. Also prominent inspace are BMW with 63 apps, MTV with 62 and Cisco with 61.Distimo says that the most successful and popular brands in the app stores are publishing across platforms, notablyiOS and Android. Apple remains the place to be seen, however, with 86% of top brands represented in the iPhonestore and 66% in the iPad store. Google’s Android Marketplace attracts 59% of the big names, and Blackberry AppWorld trails with 26%. Android, iPhone and iPad all experienced significant growth in their brand apps fromSeptember 2010 through March 2011. Since then iPad and Android have continued their sharp growth curve, withiPhone leveling off at its already well-saturated levels.The app-iverse is about to be shaken up a bit in coming weeks as Amazon’s Kindle Fire comes online and Barnes &Noble is rumored to be preparing a follow-up to the Nook Color. Both of these devices have carefully managed andlimited stores of Android apps they let in, but they are not to be discounted. The existing Amazon App Store forAndroid apps is visible already in the Distimo counts with about 14 apps from major brands. I am not sure why NookColor isn’t in this mix, since it actually has over 600 apps available to users.As the e-reader devices and quasi tablets gain processing power, I expect they will become more viable places forcertain brands. In the Nook Color app store, for instance, magazine facsimiles already often sell at a rate that rivalsor exceeds their counterparts in the Apple App Store, some publishers report. These smaller e-Readers have aportability advantage over full size tablets that could prove especially useful for some consumer brands. ShoppingBabelfish Articles Oct 2011 Page 3
  • 4. apps, recipe apps, consumer buying guides, and anything that might prove of value in-store could find these not-quite-iPads promising, uncluttered territory.Monday, Oct. 31, 2011What Will Media Advertising Look Like In 2020?By Matt StrazIn just eight years, we will enter the third decade of the 21st century. What will the media advertising industry looklike then? Who will be running the media agencies? Will media buying be completely automated? Here are someprognostications:Clouds, screens and agents. By 2020 the media industry will be have moved to cloud-based computing platforms. Afew of these platforms will become dominant and manage most of the screen-based based buying. To exist as amajor media company or technology vendor will mean plugging into these platforms. Screens will come in all shapesand sizes but it will be the devices not yet on the drawing board today that will be the most exciting. Augmentedreality software will offer new kinds of advertising opportunities. Virtual agents will increasingly become a part ofour personal and professional lives. Brands will take the first steps toward sponsoring some of the activities of ouragents.Women rule. By 2020 many of the men who built and have led the media advertising industry for the past 40 yearswill have retired. The thousands of women who joined media agencies straight out of college in the 1990s and 2000swill be in their late 30s and 40s and will be ready to step up. Within the next ten years upwards of half of all mediaagency CEOs will be women. Also, sometime in the 2020s we may see a woman break through to run an agencyholding company.Buyers will be geeks. The buyers of the future will have a formal background in predictive analytics. Some of thepeople who cut their teeth buying pay-per-click keywords on platforms like Google will provide essential leadershipon these teams. Others will come from the existing analytics groups inside the agencies. Increasingly, with so muchdata to process, human buyers will be assisted by virtual agents.Fewer media sellers. While some level of human-based media sales and strategy will always be necessary, by 2020the majority of ad deals will be struck silently inside of machines. The practice of large teams of junior sellers hittingthe streets and pitching banner ads to agencies will be as dated as 1960s “Mad Men.” In fact, by 2020 there will be aperiod drama or movie based on the online ad industry circa 2004. It will be rather humorous.More technology sellers. Many of the people who were previously selling media will move over to selling media-related technology and they will be very good at it. As software increasingly eats the human-based ad sales businessthis trend will only accelerate.The Web is old. The banner ad will be 25 years old by 2020 ,and the business will be mature in more ways than one.With the younger demos all on mobile devices, games and augmented reality apps, Web sites will be used to targetpeople over the age of 40. “Surfing the Web” will seem as quaint as reading a physical newspaper is today.Talent investment. Someday we may look back and cringe at how poorly the media advertising industry managed itshuman talent during its first few decades. Through a combination of training and technology, media advertising willmove beyond its roots as a kind of guild to become as professionalized as the consulting, finance and technologyindustries.Left behind. While technology will continue to transform media, there will still be pockets of non-digital media. Someareas will continue to be served by local newspapers. But the economics of remaining non-digital and thus outside ofthe realm of the major trading platforms will be increasingly difficult, particularly for national publications. Manypapers and magazines will either make it as digital-only properties -- or, sadly, decide to wind down operations.Those are some of my predictions. What do you think the world of media will look like eight years from now?Babelfish Articles Oct 2011 Page 4
  • 5. Online beats TV for ROI: studyLONDON: Television advertising campaigns still offer the greatest reach of all media but deliver a lower return oninvestment than the online equivalent, a study from the UK has found.GfK, the research firm, assessed eight cross-media campaigns run by FMCG brands. Its analysis was based on 8,000households, all of which had web connections, recruited with Kantar Worldpanel.It reported that television campaigns typically reached 73% of homes possessing access to the internet, comparedwith 39% for press and 28.7% for outdoor.Online ads secured 33.5% on the same metric, with display registering 28.8%, video on 11.3% and Google search on2.3%.More broadly, web advertising boasted an "exclusive" reach of 31.9%, meaning almost a third of people exposed tomarketing messages through this route had not seen the accompanying TV spots.Internet video scored 46% here, climbing slightly to 46.2% for YouTube, and ahead of display on 28.5% and Googlesearch on 26.1%.When it came to generating an increase in sales, the average improvement following a single "contact" with aconsumer stood at 9% for internet ads.Paid search via Google recorded a lift of 41% on this measure, versus totals of between 6% and 8% for TV, press andoutdoor.The strong performance of Googles paid search tools resulted despite the fact its average number of weeklyexposures was around half that for TV ads.Google search also yielded the highest return on investment, of £3.13 for every £1 spent. YouTube logged 84p,beating all online video on 81p. The web as a whole had an average payback of 75p, standing at 69p upon breakingout display ads.Looking to traditional media, television posted 43p, rising to 53p regarding outdoor advertising and 66p for the pressalternative."When executed appropriately online can play a significant and unique role in the marketing mix - bothcomplementary to television, print and outdoor, but also distinct from it," Babita Earle, Digital Strategy Director atGfK, said."Where it is utilised well, online is a very efficient means to connect with hard-to-reach consumers who tend toescape traditional advertising channels."Babelfish Articles Oct 2011 Page 5
  • 6. Data sourced from GfK; additional content by Warc staff, 31 October 2011Big brands embrace appsUTRECHT: More than 90% of the worlds biggest brands are now using mobile apps as a tool to engage consumers,according to a new report.Distimo, the insights group, assessed the presence of the 100 members of Interbrands 2011 Best Global Brandsranking in leading app stores such as those run by Apple, Microsoft, Google and Amazon.In all, 91% of organisations boasted at least one application in these outlets, a figure which had grown from 51% in asimilar study published in 2010.Disney led the charts with 636 apps across all the stores analysed, falling to 285 for Sony, 63 for BMW 62 for MTVand 61 for Cisco. Collectively, the featured corporations had a combined 2,343 apps, up from 1,631 last year.Among the companies which have not yet leveraged the opportunities supplied by mobile applications are Burberry,Kleenex, Corona, HSBC and Moet & Chandon.On average, the businesses tracked by Distimo had 24 applications apiece, and although this rating was slightlyinflated by Disney and Sony, even without these firms the total stood at 15.Elsewhere, only 32% of apps, provided by 27% of enterprises - including Adobe, Thomson Reuters and Disney -offered their parent company a direct means of making money through app stores.Some 488 apps were linked to personalisation and 244 to lifestyle, and thus primarily based around leisure. A further181 were tied to entertainment content, and 124 to music.An additional 256 applications had business use at their core, with organisations like IBM, HP and SAP among therelevant players here.Overall, 86% of the brands monitored claimed a presence in the iPhone App Store, hitting 66% for the iPadequivalent. Googles Android Market scored 59%, with BlackBerry App World on 26%. Amazons App Store logged14%.By sector, the media companies in the study possessed an average of 247 apps, ahead of software manufacturers on36, business services firms on 31 and automakers on 29."Global brands have realised over the past 18 months that app stores offer a viable channel to promote their brand,reach consumers, and for a subset of brands - sell content," the study said.Data sourced from Distimo; additional content by Warc staff, 31 October 2011Advertising Companies Fret Over a Digital Talent GapBabelfish Articles Oct 2011 Page 6
  • 7. By TANZINA VEGAPublished: October 30, 2011When the Ad:tech advertising technology conference hits New York next week, marketers, advertising agencies andrecruiters may spend less time listening to the panelists and more time working the floor to find new employees.Peter DaSilva for The New York TimesEdwin Lee of MediaMath said he helped companies with subjects “they don’t really understand.”A talent gap is growing between the skills that many new advertising jobs require and the number of people whohave those skills. The dilemma, one familiar to many industries across the country, is particularly acute for jobs thatrequire hard-core quantitative, mathematical and technical skills.The talent pool, advertising technology company executives say, is not a deep one. And those who have the skills arein high demand, often fetching annual salaries that can reach $100,000.“There is pain for hiring in digital at all levels,” said John Ebbert, managing editor of AdExchanger.com, a Web sitededicated to advertising technology.“The marketers, the publishers, the ad tech companies, the agencies, data management companies — they’re allgoing for the same type of employee.”The job board on AdExchanger, which is updated every 45 days, has postings for positions with titles like “YieldOptimization Manager” and “Director of Platform Marketing.” The number of jobs on the board has nearly doubledin the past year, Mr. Ebbert said, to 80 jobs every 45 days from 40.The digital talent gap is driven in part by the enormous amount of user data that ad tech companies are collectingfor agencies and marketers — data that is instrumental in directing ads to consumers and analyzing trends. Newhires are needed for a variety of tasks, including writing code, creating digital advertisements, Web site developmentand statistical analysis.“The demand has far outstripped the supply,” said Joe Zawadzki, the chief executive of MediaMath, an ad techcompany in New York. “The number of things that you need to know is high and the number of people that havegrown up knowing it is low.”Mr. Zawadzki said that as of last week his company had 13 positions open and had gone to job boards, recruiters andeven hosted technology-focused meet-ups to find people. In September, the company hired its first senior vicepresident for human capital to help with recruitment.On average, Mr. Zawadzki said, it takes two to three months to find the right person — someone with a combinationof pure quantitative skills, applied marketing skills and an understanding of how the advertising technology businessworks. With a limited talent pool, many ad tech firms are after the same people.“Half my job is maintaining a mental Rolodex of people that are at various places,” Mr. Zawadzki said.Edwin Lee, 40, is typical of the candidates that many ad tech companies are competing for. Mr. Lee, an economicsmajor at Stanford who has a master’s degree in business administration from the University of Southern California,was hired as an account director at MediaMath in September. He came to the company after leaving a Silicon Valleystart-up and began his new job after entertaining a variety of options, including other small start-ups and Google.“For me it was like, ‘The world’s my oyster here — what do I want to do?’ ” said Mr. Lee, who describes his new jobas “helping companies and clients make sense of something they don’t really understand and they hear a lot about.”The difficulty in finding qualified candidates is affecting advertising agencies as well, said Jerry Neumann, a venturecapitalist from Neu Venture Capital who invests in ad tech companies like 33 Across and YieldBot.Agencies have not traditionally hired for skills like “number crunching, data visualization, quantitative analysis,” Mr.Neumann said. “They’ve never needed those in the past.” Instead, media buyers and even those on the creative sideof agencies need to prepare for a new digital reality.“The kind of media buying that’s happening now is much more quantitative” Mr. Neumann said. “The agencies arestaffed for qualitative.”Babelfish Articles Oct 2011 Page 7
  • 8. Instead of coming up with one grand idea, new digitally adept workers in creative fields should be able to devisemultiple ways to execute an idea. For example, a variety of Facebook ads can be devised, then tested on the fly tosee which appeal to consumers, Mr. Neumann said.The increasing ability for marketers to put specific ads in front of specific viewers at specific times, whether onmobile devices or personal computers, also creates a need for employees who can conceptualize and executesimultaneous concepts. Mr. Zawadzki said the future for creative talent would be “to come up with thousands ofideas, put them out there and see what works.”Jennifer Seidel, the executive vice president for agency relations and membership at the American Association ofAdvertising Agencies, said agencies that were more general in their focus were having a harder time attracting talentwith deep digital or quantitative skills.“Part of it is to get people to recognize that it’s a viable career choice,” Ms. Seidel said. To that end, the tradeorganization hopes to have a Web site soon that will feature the range of people with nontraditional skill sets whowork at advertising agencies. They have also formed a committee to address talent gaps at agencies and to offertraining seminars for members.Ms. Seidel and other ad tech executives said outreach to universities was also critical.“Colleges and universities are not teaching the skills they need to survive in this environment,” said Doug Weaver,the founder and chief executive of the Upstream Group, a company that provides digital training to publishers andagencies. While some universities have advertising and marketing concentrations, “the traditional media sales or adskill set was not built for this,” Mr. Weaver said. “You need a hybrid.”Some agencies, like Goodby, Silverstein & Partners, part of the Omnicom Group, have put formal training programsin place. Its program, called Ed, began last July and has offered more than 100 classes on everything from “field tripsto Facebook,” said Allison Kent-Smith, director for digital development at Goodby. Ms. Kent-Smith said employeeswere trained in areas like interactive design, social media, HTML and coding languages like CSS.“You have to get very close to technology,” Ms. Kent-Smith said. “You have to get your hands in it.”The Ad:tech conference will be held at the Jacob K. Javits Convention Center in Manhattan from Nov. 8 to 10, andwill include a panel on how marketers can build a digitally skilled “brand dream team.”But panels and training may not be enough. Erika Weinstein, president of the executive recruitment firm Stephen-Bradford Search, said the bigger issue for agencies trying to fill the talent gap was managing the grand expectationsof what these new employees were expected to do.“Something has gone terribly out of whack in looking for realistic talent,” Ms. Weinstein said. Many companies arelooking for “a five-headed monster,” focusing on creative and highly technical skills and a strong business acumen.Agencies, Ms. Weinstein said, needed to “get realistic not only about what they want from the candidate, but whatare they going to offer.”Yammer Adds Badges And In-Line Videos To Enterprise Communications AppBabelfish Articles Oct 2011 Page 8
  • 9. Enterprise social networking platform Yammer is adding two new features to its platform today that are worthnoting. The company is supporting in-line videos within news feeds, and is also allowing users to recognizecolleagues with badges.Now you can attach videos to Yammer messages (just as you would with a Word document or PowerPointpresentation), and then users can play the videos directly in the feed, comment, and like videos. Users can alsobrowse all uploaded videos that have been added to a company’s stream and search for videos by keyword. Yammersays that the video player is HTML5 compatible and works in the web browser on the iPhone and iPad.Yammer is also releasing Praise, a new application that allows users to reward colleagues with badges. Users will beable to see all the badges they and other co-workers have earned over time via a recognition tab on their profilepages.While badges and in-line videos are relatively small additions to the collaboration app, the addition of both featuresshow that Yammer is steadily becoming a full-fledged social network for the enterprise. And we know that thecompany has ambitions of being the Facebook for the Enterprise. Now if only Yammer could make its AIR and mobileapps less buggy…Babelfish Articles Oct 2011 Page 9
  • 10. How to Bring a Magazine to Life OnlineJeanniey Mullen | Contact Jeanniey | Comment | Print versionWhen the Pivotcon Conference was coming to New York and my friend Brian Solis was creating a killer agenda, Iknew both my companies, Zinio and VIVmag, needed to have a presence there. But, anyone who knows me knowsthat I am not a fan of standard booths at trade shows. They dont enable the brand to stand out. I wanted my digitalpublishing brands to stand out.So I begged, bribed, and pleaded with my team to join me in my quest to do something never done before: create amagazine, onsite at the event, that would bring to life all of the great imagery, sound bites, excitement, andinspiration from the event, and then make it available to the world.And with that, we built a living magazine chock-full of insights from some of the most influential marketers around,including Brian Solis, Pete Krainik, Adam Duritz, Hope Frank, Evan Greene, Elisa Camahort Page, and many others(including me ☺).Filled with 18 videos and lots of photos that captured the essence of the conversation, we created a curated piece ofhistory that anyone can use as a reference for great tips, hints, and insights. But we didnt stop there. Realizing thatdigital publishing requires you to speak to the three main types of digital audience in their own unique ways, wecreated an engagement path for all three:Digital reading fans get the entire issue for free at Zinio.com/pivot2011. They can enjoy it on their PC or iPad.Social fans dont need to filter through the table of contents, but instead can use a video that enables TOC to hearclips and sound bites of all those featured and choose to engage.And finally, that third group of engagers, who rely on good old traditional PR to hear about new items andinnovations from trusted sources were able to learn about the effort through a press release here.Promotions went live on Thursday, October 27, 2011 so its too early to tell how big of a success this effort will be.The main point of sharing the process through this column, though, is to bring home the point that, in a world ofdigital publishing, turning on content is not good enough. To bring a magazine or other digital publication to life, youneed to seed your audience based on who they are and how they engage with content. In our world, there aremultiple channels of communication required in order to launch and maintain brand awareness for a product.If you are launching any digital initiative soon, make sure you "hedge your bets" by creating the most robustdiscovery plan you can. And keep focused on innovating, driving, and learning even more.Babelfish Articles Oct 2011 Page 10
  • 11. Anatomy Of An Agency InfographicBabelfish Articles Oct 2011 Page 11
  • 12. Babelfish Articles Oct 2011 Page 12
  • 13. Is Social Buzz Boosting TV Ratings?by Alex Iskold, Yesterday, 5:35 PMSomething big happened this month in the colliding worlds of television and social media. Nielsen, the currentauthority on television ratings, published a study linking TV ratings with social media chatter, which has implicationsfor social media, television networks and major brands.Babelfish Articles Oct 2011 Page 13
  • 14. Television has traditionally been a passive medium -– viewers sit on their couches and simply watch their TV screens.In recent years, however, social networks have seen an increase in the amount of social chatter happening duringprime-time television.This so-called “social TV” phenomenon is fueled by the widespread use of phones and tablets. Television viewers areno longer just watching TV passively -- they are connecting to other viewers and discussing their favorite shows usingtheir second-screen devices.Since early 2010, marketers at major networks have started to notice this increase in social chatter and have realizedthat it is important to encourage more of it. Not only does this chatter increase brand exposure, but it also creates a“word of mouth” phenomenon wherein viewers, rather than networks, encourage people to tune in.But just how much of an impact does all of this buzz actually have on overall ratings? While the answer is stillunclear, many network executives and data analysis firms are starting to uncover why there may be a connection.Back in December 2010, Lisa Hsia, senior vice president of digital media at Bravo, wrote an article on Mashablewhich discussed the “new digital water cooler” and its positive impact on Bravo’s TV ratings. Hsia claimed that Bravosaw a whopping 10% lift in ratings due to the increase in social media chatter. While she makes sure to mention thatthe results came from one study and that more work still needs to be done, she is confident that the results indicatea significant correlation between ratings and social media buzz.In July of this year, GetGlue shared further research analyzing the connection between social check-ins and televisionratings. The GetGlue study reached a similar conclusion -– social buzz and TV ratings are related. Interestingly,GetGlue found that there was no single formula for determining the correlation. Instead, the relationship betweenratings and social media buzz was different for each type of content.For instance, the impact of social buzz on dramas is smaller than the impact of social buzz on reality shows. Thisvariation makes sense, as viewers are much more likely to chat during the fast-paced, surprise-filled Jersey Shorethan during the more subdued The Good Wife.Also in July, Advertising Age published an article about NBC’s hit show "The Voice." The article was based on datafrom Bluefin Labs, an MIT Media Lab-spinoff focused on social analytics around television. While it is no secret that"The Voice" was a huge hit for NBC, the article revealed that the show generated the highest level of social-mediaengagement for any show that aired in the spring of 2011, beating favorites like "Glee" and "Dancing With the Stars."Then, in August, NYC-based social TV analytics company Trendrr.tv, shared its data about the "MTV Video MusicAwards." This article on Mashable reported that the 2011 "VMA" broke social media engagement records for bothMTV and Twitter. At 10:35 pm, when Beyonce revealed that she was pregnant, Twitter experienced nearly 9,000tweets per second in relation to the news.While the evidence of the connection between social buzz and ratings continues to pile up, TV networks havealready started to take action. Today, every major television network, large and small, cable and broadcast, isparticipating in social TV. ABC, CBS, CW, Fox, NBC, USA, TNT, Bravo, Discovery, HBO, Showtime and others aretapping into social media, encouraging and rewarding fans for informing friends about what they are watching andsharing their thoughts on the individual shows.Still, the study that Nielsen published this month is a significant milestone for social TV.Babelfish Articles Oct 2011 Page 14
  • 15. With Nielsen on the record saying that social buzz is connected to TV ratings, two important things happen. First is ahuge validation for the significance and influence of social media. Second is the realization that social activity canbegin to be monetized. Since ratings already correspond to dollars and social buzz affects ratings, televisionnetworks can now begin to develop strategies for monetizing social activity.What is next for social TV? To start, the relationship between buzz and ratings will become clearer. Then, networksand advertisers will start to agree on how to measure and value social buzz. Finally, much like Nielsen’s rating systemfor TV episodes, there will likely be a complimentary score measuring social buzz.Mark Ghuneim, CEO of Trendrr, likes to call this future measuring system the Passion Index. Whether the termcatches on or another name arises, we can be sure that television networks, social media and Nielsen have openedthe door for a new, additional way to measure television ratings.Engage Your PeopleEngaged employees are essential to a managers success. Without subordinates who care about, participate in, andtake ownership over the work, even the best boss will flounder. Here are three ways to win your employeesengagement:• Be modest. Share both your mistakes and your successes. Subordinates will see that youre both human anddont have anything to prove.• Show that youre listening. People tune in to body language. Manage where you look and what you do withyour hands so that employees know youre paying attention.• Dont have all the answers. Managers should catalyze problem solving. Be willing to admit that you dontknow what the answer is and invite your team to toss around ideas.Thursday, Oct. 27, 2011Web Influences Trillion Dollar Retail SalesNew research from GroupM Search, with research partner Kantar Media Compete, reveals that 86% of buyers whopurchase in-store use generic terms on search engines to inform their purchase decision. The study, featuringRadioShack, Audi, and a national entertainment brand, also shows that when a shopper conducts a search onlineand clicks on a link, 90% of those clicks are on the organic listings of a search engine results page.Forrester Research projected online retail revenues to be $173 billion in 2010, growing over 40% to reach nearly$250 billion by 2014. Yet for all the projected growth, the online channel will account for just 8% of total retail salesrevenue. A deeper look at the numbers confirms that this drastically undervalues the role of the Web in the retailindustry, says the GroupM study.The same Forrester study found that in 2011 more than $1.1 trillion in retail sales could be attributed to what theyrefer to as “Web-influenced” purchases, defined by Forrester as offline retail sales that are influenced by onlineresearch. Combined with measured online sales, 48% of all retail sales are either online purchases or Web-influencedpurchases. This trend will continue, and by 2014, this number is forecasted to increase to 53%, or $1.4 trillion. Bothdirectly and indirectly, the online channel is truly an inseparable component of consumers’ path to purchase,concludes the report.Conducted, and detailed in the white paper “From Intent to In-Store: Search’s Role in the New Retail ShopperProfile,” the study explores the role online search plays in in-store purchases, and takes a close look at consumersearch behavior and engagement with the retail element of the brands studied.Babelfish Articles Oct 2011 Page 15
  • 16. Chris Copeland, CEO, GroupM Search, points out that “... the Web is influencing more than $1 trillion of in-storesales, and search is the number one online channel for driving that revenue... this new understanding of the retailshopper represents a behavioral shift... “93% of all buyers, online or in-store, use search. Nearly 80% of buyers who use search rate search as very orextremely useful. The most interesting insights, however, are data around consumer usage of search for in-storeshopping, and the intent and activity surrounding these actions. More specifically:Buyers are much more likely to search on generic terms than branded, 86% of buyers conduct generic versusbranded queries. In studying the referrals from search engines to brand and third-party sites, the research alsoshows that more visitors arrive from generic searches, indicating early stage searching at the top of the purchasefunnel. Buyers show a greater propensity to click on a generic link, at a rate of 144% over the general shopperconducting searches in the related category. This reality becomes important because brands typically invest ingeneric terms based off of the ability to convert down the funnel. However, this data suggests in-store buyers areactive up funnel, and if their activity is not supported by a strategy that delivers relevant brand results, they may notreach the store for purchase.• 86% of buyers who purchase in-store search on generic terms versus brand terms.• For search campaigns focused only on direct response, online return on investment (ROI), this understandingpresents an opportunity to challenge conventional wisdom and drive greater overall retail sales.Across each of the retail profiles included in this study, buyers consistently click on the organic links of a searchengine results page (SERP) more often than paid. For branded queries it is just as pronounced, with buyers clicking64% of the time, broken out by 94% on organic links versus 6% paid. This new data is even more of a tilted realitythan the universally stated 80-20 rule of organic versus paid traffic traditionally espoused. In fact, a broader viewutilizing Compete’s U.S.Top 100 data and eliminating the holiday period, puts the ratio of organic to paid clickscloser to 85-15• In addition to the significant percentage of organic clicks that occur when a shopper searches, in-storebuyers show a greater propensity to click on a generic link, at a rate of 144% over the general shopper (2.5 timesmore).• Brands have a strong mandate via this data to further invest in their organic search efforts, notes the report.One of the biggest landing points, when consumers do click, is the store locator page. More than 5% of the trafficmeasured to an advertiser’s site was store locator activity. This interest was shown across all three brands studied,with a notable spike for the brand selling its own branded products in its own stores. When comparing to Compete’sTop 100 U.S. Retailer data, this pattern proves consistent across the larger retail segment, with nearly 15 millionconsumers conducting a search that results in a click on the store locator during the December holiday period alone.With new functionality from Google and others that embeds store locator options into a SERP, this activity by buyersproves it is more important than ever for advertisers to take advantage of such features• More than 5% of traffic measured to an advertiser’s site is store locator activity.• Consumers want to visit relevant destinations, whether it is a store locator page, or a third-party site.The report concludes by noting that three key findings on consumer usage of search for in-store shopping came totheforeground:• For in-store buyers, search is about discovery via generic keywords.• In-store buyers click on organic listings.• There is increased store locator visitation among buyers who use search and purchase in-store.Finally, says the report, the research paints a clear picture that shows shoppers have established search as theirlifeline to the buying decisions they make. Not only is search the most-used online channel in the shopping process,it is often used more than once in that process. 93% percent of all buyers, online or in-store, use search, with nearly80% rating search as very or extremely useful. Search is used throughout the different stages of the process, with themost frequent path being a single, generic query. However, when consumers conduct multiple searches and moveBabelfish Articles Oct 2011 Page 16
  • 17. down the funnel, searches shift to what and where to buy. In these follow-up queries, shoppers use explicit queriesto inform the specific decisions they are looking to make.For additional insights included in this report, please visit GroupM here.EIGHTY-SIX PERCENT OF IN-STORE, RETAIL BUYERS SEARCH ON GENERIC VERSUS BRANDED KEYWORDS,RESEARCH FROM GROUPM SEARCH REVEALS13-month study, featuring RadioShack, Audi and a national entertainment brand, explores the role search marketingplays in driving in-store purchase; provides profile of today’s retail shopper(ST. LOUIS) October 17, 2011 – New research from GroupM Search reveals 86 percent of buyers who purchase in-store use generic terms on search engines to inform their purchase decision. The study, featuring consumerelectronics retailer RadioShack, luxury automotive brand Audi, and a national entertainment brand, also shows thatwhen a shopper conducts a search online and clicks on a link, 90 percent of those clicks are on the organic listings ofa search engine results page (SERP).Conducted with research partner Kantar Media Compete, and detailed in the white paper “From Intent to In-Store:Search’s Role in the New Retail Shopper Profile,” the study explores the role online search plays in in-storepurchases, and takes a close look at consumer search behavior and engagement with the retail element of thebrands studied. The research sheds new light on the profile of today’s retail shopper, most notably regarding intentexpressed through search activity that drives buyers to make a purchase in-store, and the significant role genericsearch queries and clicks on organic listings play in a buyer’s purchase decision. It also provides insight into factorsthat drive the decision to purchase in-store versus online. The findings suggest an opportunity for advertisers torevisit their marketing strategies and how they think about owned and earned media in order to capture traffic anddrive greater in-store revenue.“The Web is influencing more than $1 trillion of in-store sales, and search is the number one online channel fordriving that revenue.” said Chris Copeland, CEO, GroupM Search. “This new understanding of the retail shopperrepresents a behavioral shift. The intent shown in search provides brands an opportunity to maximize their onlinerevenues and encourage and cultivate greater in-store sales.”The research paints a clear picture that shows shoppers have established search as their lifeline to the buyingdecisions they make. Ninety-three percent of all buyers, online or in-store, use search. Nearly 80 percent of buyerswho use search rate search as very or extremely useful.The most interesting insights, however, are data around consumer usage of search for in-store shopping, and theintent and activity surrounding these actions. Specifically:• For in-store buyers, search is about discovery via generic keywords.o 86 percent of buyers who purchase in-store search on generic terms versus brand terms.o For search campaigns focused only on direct response, online return on investment (ROI), this understandingpresents an opportunity to challenge conventional wisdom and drive greater overall retail sales.• In-store buyers click on organic listings.o In addition to the significant percentage of organic clicks that occur when a shopper searches, in-storebuyers show a greater propensity to click on a generic link, at a rate of 144 percent over the general shopper (2.5times more).o Brands have a strong mandate via this data to further invest in their organic search efforts.• There is increased store locator visitation among buyers who use search.o More than 5 percent of traffic measured to an advertiser’s site is store locator activity.o Consumers want to visit relevant destinations, whether it is a store locator page, or a third-party site. Brandsmust direct shoppers accordingly.• Tablets are already an important means by which consumers shop.o 10 percent of shoppers report using tablets during the retail shopping process.Babelfish Articles Oct 2011 Page 17
  • 18. o The rapid adoption of mobile, and subsequently tablet-driven shopping, is an opportunity that brands mustactivate against, immediately.“These findings are consistent with the results of research we have conducted in multiple industries around theimportant role search plays in a consumer’s path-to-purchase,” said Michael Perlman, Managing Director OnlineMedia & Search at Compete. “Many consumers clearly do not exclusively use either online or offline channelsthroughout the entire buying cycle, but rather navigate across channels at different stages of the considerationprocess.”“Our research efforts are designed to deepen the understanding for our clients of engagement taking place acrosssearch and emerging channels, as well as the impact of these channels,” said Copeland. “This research indicatesretailers have an opportunity to rethink how their current search efforts – paid and especially organic – can pair withowned and earned media to bridge the gap to the trillions of in-store revenue potential.”The methodology for the research included clickstream analysis of data captured over a 13-month period, as well asa behavioral survey developed for each of the three brands. A full exploration of the findings from the research andits implications for advertisers is published in the whitepaper available at www.groupmsearch.com/research.About GroupM SearchGroupM Search is the search marketing specialist division of GroupM, the media buying and planning arm of WPPresponsible for more than one-third of the world’s media buying. GroupM Search provides industry-leading searchmarketing strategies, technology development, research, staffing and training to GroupM communications planningagencies divisions including Maxus, MEC, MediaCom and MindShare, as well as the direct-to-client brands, CatalystOnline and Outrider. Honored by OMMA Magazine and MediaPost as the 2008 Search Marketing Agency of the Year,GroupM Search has the largest global footprint of any other search organization, with more than 800 searchmarketing strategists spanning 40 countries. Global search marketing perspective from experts across theorganization can be found on the GroupM Search blog, SearchFuel (www.searchfuel.com).About Kantar MediaEstablished in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentumthrough analysis of print, radio, TV, Internet, cinema, mobile, social media and outdoor worldwide. Kantar Mediaoffers a full range of media insights and audience measurement services through its global business sectors –Intelligence, Audiences, TGI and Custom. Kantar Media companies also include Compete, Cymfony and SRDS.Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and deliversinsight to more than 22,000 customers worldwide. www.KantarMediaNA.com/.Marketers: Post After Hours to Get The Most Out of Your Facebook PostsKeywords: Behavior Best Practices content marketing facebook Facebook facebook marketing marketing SocialBusiness Social Customer social media Social Media social media marketing social networks Social Networks the stargroupcomments Posted October 26, 2011 with 1101 readsRaise your hand if youre a brand marketer who thinks posting to Facebook during "norma" business hours is theway to go? Its ok if you have your hand raised because youre not alone. However, you would also be wrong as anew study reveals that the best time to post a branded message to Facebook is in fact AFTER "normal" businesshours.Babelfish Articles Oct 2011 Page 18
  • 19. The study, done by social enterprise software company Buddy Media, revealed that many marketers and brands aremissing the proverbial boat when it comes to maximizing their Facebook posts. How much are they in fact missingsaid boat? Well consider the fact that brands that post AFTER "normal" business hours saw a 20% increase inengagement when compared to those posts posted during "normal" business hours.To me this is a clear example of the importance of having a Facebook post appear the top of your fans News Feedsduring the times of the day when they are most likely to be on Facebook, AKA not between 9AM and 5PM. So themoral here is dont post just because its convenient for you, do it when you know your fans - your brandambassadors, are likely to see it and share it. However, do not make the mistake - the tragic mistake, yes tragic, ofusing a 3rd party app like TweetDeck or HootSuite to schedule your Facebook posts for you. Why? Well, as I wroteabout in my aptly titled post not long ago, Facebook Autoposting - A Social Media No No ... on average, FacebookPages that show posts via a third party app such as HootSuite or TweetDeck, as opposed to linking the old fashionedmanual way, receive 70% fewer likes and comments.The Day Of The Week Matters, Too...The study also revealed that which day of the week you post to Facebook to affects the level of engagement, too asThursday and Friday seem to be the best days to post. As noted in the survey findings itself... "This finding coincideswith data recently revealed by Facebook showing that the “Happiness Index” on Facebook spikes by 10% on Friday."In other words, people, consumers, customers - whatever you want to call them/us are more receptive and morelikely to engage with a Facebook post with the weekend right in front of them as opposed to earlier in the weekwhen the weekend looks a million miles away.When To Facebook Post By Industry...However, posting predominantly on Thursdays and Fridays is not always the best method of operation for as thesurvey also showed, it also depends on which industry you happen to work in. For example in the Retail Industry, itwould appear that Sundays are good but Fridays not so good. As you can see from the chart below, retail brandsposted the most on Fridays, maybe thinking it was a good time to hit them up with a sale or something heading intothe weekend. But look at the number of posts (blue bar) compared to the level of engagement (green line.)Babelfish Articles Oct 2011 Page 19
  • 20. Then we have the Business and Finance Industry - your banks, insurance companies, etc. What day of the week doyou think is best for those in this industry to post to Facebook? If you guessed Wednesday and Thursday, take adollar out of petty cash for you are right.Why the higher engagement rates on Wednesday and Thursday for these industries? I do not know. Perhapsbecause these folks are so inundated with emails from the weekend that they dont have time to check Facebookuntil Wednesday?One other industry I want to highlight is the Food and Beverage Industry which sees a higher Facebook postengagement during midweek and then again on Saturdays.From the findings... "Of all the industries reviewed, food and beverage brands were proportionately more activewith publishing on the weekend as compared to other industries, although engagement rates peaked on Tuesdayand Wednesday, and again on Saturday."Babelfish Articles Oct 2011 Page 20
  • 21. There are additional industry breakdowns such as fashion, health & beauty and entertainment. You can see theentire survey findings here.But one thing to keep in mind when reading the results and that is these are not hard and fast rules i.e. best times topost to Facebook and best days to post. Social media is all about people and people are different of course. Thepoint I am trying to make is you may work in the retail industry yet for your company you see a high enagement onFridays. Are you suddenly going to shift your Facebook strategy to align with the survey findings and post and lessenthe amount of posts you make on Fridays? No, with a capital N and a capital O. Your customers, your fans will dictateto you when they are most engaged with you on Facebook. Listen to them, literally and you will never go wrong.So, what do you take away from the findings of the survey? Do you see a similarity to what the findings showed andwhat you see from your Facebook fans?Sources: Buddy Media, The Star Group, Marketers: Post After Hours To Get The Most Out Of Your Facebook PostsAPAC companies closing social media gapMore than 80% of companies listed on The Wall Street Journal’s Asia 200 Index have a corporate social mediapresence, up from 40% last year.That is according to the ‘2011 Asia-Pacific Corporate Social Media Study’ by PR firm Burson-Marsteller.The top companies in Asia closed the gap with Fortune 100 companies, where 84% of companies use social mediachannels for corporate marketing and communications.Overall, however, companies in Asia continue to use social media to ‘push’ news and information at users, ratherthan engage in discussions.33% of activity across APAC focussed on basic media and influencer outreach, as opposed to engagement onsubstantive corporate topics. Only 9% firms surveyed use corporate blogs for corporate marketing andcommunications, despite their value in helping explain complex topics.“More often than not Australian companies are taking a ‘build it and they will come’ approach to social media,creating platforms and populating it with company information and news, without adapting content or tone, basedon audience response. It’s for this reason that we’ve seen a low level of audience engagement in this year’s study,”said Carly Yanco, head of digital at Burson-Marsteller Australia.McCann cuts jobs as CEO predicts death of agency modelRecently formed McCann Erickson Australia, the merger of McCann Worldgroup and Smart, has axed a raft of middleto senior management jobs as the CEO predicted the death of the traditional agency model.Babelfish Articles Oct 2011 Page 21
  • 22. “With this change we have effectively removed a layer of middle to senior management that will help you all operatemore efficiently and at our full strategic and creative potential,” said MEA CEO Ben Lilley in an internal email to staff.“Importantly for our clients, this means more direct contact with the people who are actually working on theirbusiness, not just their business heads, and a leaner and faster operating structure.”Lilley (pictured) would not be drawn on the number of positions axed but indicated that they would be not beingreplaced, instead there will be hires in other divisions.“Over the coming weeks and months we will be adding more strategic, creative and digital talent to work directlywith our clients.In explaining the changes Lilley said the traditional agency model was dead and there was no future for it in Australiaor globally.“For too long, this business has continued to operate as a conventional and traditional agency while the advertisingand marketing world rapidly evolves around it. This is not a sustainable operating model.There is no future for traditional agencies in this market, or anywhere else in the world. The traditional agencymodel – and the layers of management, cost and operating inefficiencies that are part of it – is dead.”When the agencies merged last month, it was revealed that Smart senior management would largely take over thesenior posts at the new business.Smart CEO Lilley took over the CEO post replacing outgoing Chris Mort and is now reporting into McCannWorldgroup regional MD Charles Cadell.Former Smart ECD John Mescall took over the ECD post at the new business and Smart planning director Ashley Farrwas charged with leading the Sydney office and planning across the group.Beware the Digital Disruptors: They’re Coming for Your Industry 7 hours ago by James L. McQuivey 13 James L. McQuivey, Ph.D. is a Vice President and Principal Analyst at Forrester Research serving Consumer ProductStrategy professionals. Follow him on Twitter at @jmcquivey.Growing up in the ’70s, I was the world’s biggest fan of The Bionic Man. Every Sunday night at 7 p.m. you could findme glued to our Trinitron TV to watch Steve Austin battle every villain from Bionic Sasquatch to the evil Dr. Dolenz.The appeal of the show was simple: Amplified by technology, the Bionic Man is better, stronger, and faster than hisenemies.It turns out to be a morality tale for our own day. But you are not the bionic man in the drama I’m unfolding — youare his target. Because while you were carefully planning your business strategy, hundreds — if not thousands — ofindividuals and competitors have been exploiting technology to make themselves better, stronger, and faster thanyou.We call these people digital disruptors. And they’re coming right for you.No matter what industry you are in, you are their target. Where you could once dismiss digital disruption as the soleprovince of the music or other media industries where it destroyed billions in value, digital disruption has nowexpanded. These disruptors employ technologies — and the platforms they enable — to build better products thanyou can, establish a stronger customer relationship than you have, and deliver it all to market faster than you everthought possible.Oh, and it doesn’t cost anywhere close to six million dollars for them to get started. I offer Lose It! as one of manycase studies worth considering. Targeting the weight loss and fitness business — one of the most analog industrieson the planet — Lose It! is disrupting the more than $40 billion Americans spend on weight loss each year. It’s acostly industry to enter — think of Jenny Craig’s marketing budget alone, then add its hundreds of physical locations,prepared meals, and all the infrastructure to support the entire enterprise. So while franchises like The Biggest Loserhave succeeded in entering this business recently, they have done so at great cost.Babelfish Articles Oct 2011 Page 22
  • 23. Meanwhile, a single app that helps dieters keep track of the calories they consume on their smartphones has gonefrom 0 to 7 million downloads in just a few years. FitNow, the company behind the app, pulled this off with fouremployees, establishing an unheard of customer-per-employee metric of 1.75 million.This is digital disruption at its finest: better, stronger, faster. The app got to market quickly, partly because as adigital disruptor, FitNow could afford to launch something that didn’t try to solve all the problems in the weight-lossworld. As Charles Teague, CEO, told me recently, “Let’s not pretend that we know the endgame here. Let’s do theleast amount of features to know if it will work. Then improve it if people use it.” And improve it they have, addingfitness tracking and more recently a robust social community of like-minded dieters.Because it sounds so easy, a CEO I shared this with asked me why, if digital is so quick and dirty, his company’swebsite redesign was over time and over budget. I told him it was precisely because he staffed up his business underassumptions about design and functionality that were true in 2005 but are no longer the case. Digital disruption haseven disrupted the digital businesses that preceded them.While digital disruptors are better, stronger, and faster, they are not untouchable. Their ease of entry comes fromthe fact that traditional barriers have fallen to zero. That means your direct cost to emulate their practices can alsobe low.That’s why I recommend you steal the digital disruptor’s handbook. Use the iPad, the Kinect, and whatever platformis next to build a digital bridge to your customers. Like with Lose It!, your bridge must engage customers more oftenthan your current product can, packaging and delivering benefits that you didn’t realize were part of your consumercontract because before now, they weren’t. You have to change your understanding of your product so you can thenchange your customer’s understanding of it as well. This will require better thinking than you currently do – Ipreviously explained how digital disruptors take advantage of a type of thinking called “innovating the adjacentpossible.” It’s crucial to generating more ideas more quickly so that you can find the nearby opportunities that willsucceed while quickly culling those that will fail.There’s more to do, but before you can even begin, you have to know: Are you ready to do this? Does your companyhave the energy, skills, and policies to turn into a disruptor or are you more likely to be displaced by the digitaldisruptor nearest you?Image courtesy of iStockphoto, NikadaLocation-Based Marketing Is Changing EverythingBryan Clark, Im Bryan Clark | Oct. 26, 2011, 3:11 PM | 105 |When we mention building websites and creating content for optimal organic SEO results, its easy to picture a docileInternet Explorer user happily clicking on the first result that pops into a Google search. While maintaining acompetitive, static browser based search campaign used to be as easy as plugging your data into a standard SEOsoftware and watching your traffic increase, mobile technology is an equally important factor to search results asdesktop and laptop searches.Real-Time Search ResultsCreating an awesome website with pages of unique original content will get you some decent rankings in Google, butwhat if youre customer is already on the go? If someone types in “cosmetics” into a search, the closest location for aWalgreens might appear instead of a major cosmetics company like LOreal or Cover Girl.Innovations like geo tagging and location based search are becoming vital components to a companys SEO mix.Most people rely on their smartphones when they are on the lookout for new places to eat, shop, and findentertainment. By placing geo tag metadata into your website, you can get higher results to consumers who arelooking for products and services “right now.”Location Check-In ServicesGoogle has recently purchased the restaurant review guide Zagat, whose thirty-two year history has given it adistinct authority in the culinary world. The acquisition of Zagat might be one of Googles loftiest purchases to dateBabelfish Articles Oct 2011 Page 23
  • 24. after YouTube, Motorola, and DoubleClick. With the popularity of other check-in services like Foursquare and Yelp, itis important to have your location based ppc campaign directed to these sites.QR Codes and NFC TechnologyThe use of QR codes by businesses is becoming more of a standard than a novelty. By scanning these codes with asmartphone, users can receive valuable information on a product, check-in status on social media sites, and specialoffers.According to Juniper Research, about 300 million smartphones will be equipped with NFC technology in the nextthree years. Smartphones like the Blackberry Bold 9930 and several Android compatible devices (surprisingly not theiPhone 5) are coming equipped with this new technology. NFC enabled phones allow users to share data with otherNFC phones, wave their device to make a purchase, and communicate with specialized NFC tags.Information is available instantaneously in our society. While the advent of social media and SEO marketing is arelatively new idea in the paradigm of human evolution, it is moving onto its next life-form at a very acceleratedrate.Read more: http://www.businessinsider.com/location-based-marketing-is-changing-everything-2011-10#ixzz1bwLRWPOnHow Non-Social Publishers Are Benefiting From Social Video Advertisingby Mitchell Reichgut , Wednesday, Oct. 26, 2011Reach and frequency have served us well. For decades, this mass-messaging philosophy has guided our industry. It’sworked particularly well for Web publishers, who charge advertisers for pre-roll video that’s placed in front ofentertainment, news, or sports content in bulk fashiMany publishers have, understandably, avoided more targeted, engagement-based deals where advertisers only payfor user-initiated views. Such deals devalue forced “impressions” while placing the burden on publishers to deliveran audience that’s actively interested in watching a video: a tall order!Google, of course, pioneered engagement-based advertising. Impressions are free in the company’s famousAdWords product -- advertisers only pay when someone clicks. Easy enough for the world’s largest search engine,when users type in their interests – but it’s not so simple for regular content sites whose audiences are typicallythere for entertainment or information.Recent changes in social media advertising, however, are creating new opportunities for Web publishers to profitfrom engagement-based video. The model comes from social games, which have enjoyed tremendous success withonline video advertising.On social game sites, visitors are rewarded with virtual goods or currency each time they watch a video. This systemdelivers significantly higher net effective CPMs than standard pre-roll, and it’s a new, and virtually endless source ofinventory. Social game users love it because it enhances their game experiences, and it puts them in control.As I noted in a past article, this dynamic yields tremendous benefits for advertisers as well: millions of long-formvideo views, 70-80 percent completion rates, and Web visits, coupon downloads, and other activities after the view.Additionally, social video is highly targeted. Audiences are segmented by age, gender, and geography.Now the opportunity is for the social video model to go mainstream. Non-social publishers don’t use virtual goods orcurrency, but their visitors could now have the choice to opt in and access premium content or services simply bywatching a video.This value-reward model is proving to be just as popular on non-social sites as it is on social games. Some publishersare adding virtual points systems to their sites, but others are using the videos as an alternative to pay walls or offerwalls. In this way, they are mitigating the frustrations that visitors sometimes feel when encountering these barriers.They are also allowing visitors to get free samples of their premium content or services, which can help drive salesand subscriptions.Babelfish Articles Oct 2011 Page 24
  • 25. Most popular content sites are chronically sold out of pre-roll inventory. While this may sound like a good problemto have, it is limiting revenue growth and preventing billions of television dollars from flowing onto the Web. Socialvideo helps publishers capture more dollars by creating new ways to monetize their audience.We all know that our old friends reach and frequency won’t be going away anytime soon. It’s exciting, though, to seenewer, more sophisticated advertising models delivering real value and changing the online video landscape for thebetter.DEAR AMERICA: Its Time To Say A Big "Thank You" To AmazonHenry Blodget | Oct. 26, 2011, 9:41 AM | 12,762 | 38•The company missed Wall Streets estimates for both revenue and earnings and said it would have lower profitmargins next quarter. This resulted in the usual spanking of Amazons stock, as short-term profit seekers growled indisgust and raced for the exits.In other words, with respect to Amazon, its the same as it ever was.Amazon is a highly unusual American corporation, for several reasons:• Amazon unapologetically builds its business for the long-term, without worrying about what short-term WallStreet traders think.• Amazon sacrifices near-term profits for long-term investments, again without worrying about what short-term traders think.• Amazon operates at a much lower profit margin than it could have if it were trying to "maximize near-termreturns," which is what many (most) American corporations try to do.• Amazon is investing--and hiring--aggressively for the future, at a time when most American corporations arecutting costs, laying off workers, and hoarding humongous piles of cash.In other words, Amazon is doing what many more American corporations could and should do: Balance the near-term "profit motive" with a more holistic mission of focusing on the long-term and serving customers, employees,shareholders, and the community at large.The most pressing problems in the US economy right now are two-fold:1. Near-record-high unemployment at the same time as near record-high profit margins2. Income inequality that is now the highest since the late 1920s, just before the Great DepressionBy balancing near-term profits with investing for the long-term, Amazon is helping to address these problems.Amazons profit "disappointment" this quarter was largely due to the fact that the company opened more fulfillmentcenters and hired more people than it expected to--8,100 people in just this quarter alone.Amazons projection of lower-than-expected profit margins next quarter, meanwhile, is likely the result of Amazoninvesting heavily in an innovative new product, the Kindle, that is revolutionizing the way media is distributed.The Kindle "ecosystem," which did not exist four years ago, is providing jobs and opportunity for tens of thousandsof people in the US and abroad. It is taking advantage of one of Americas remaining strengths, technologyinnovation. Like Amazon itself, it is making consumers lives better and easier and more convenient.Amazon itself, meanwhile, did not exist 15 years ago. It exists because an entrepreneur named Jeff Bezos took therisk of quitting his super-high-paying Wall Street job, racing across the country in his Honda to Seattle, and thenstarting the company from scratch. And in the past 15 years, by balancing near-term profits and long-terminvestments, Amazon has outlived many dotcom shooting stars and become a global powerhouse with ~$50 billionof revenue that employs 50,000 people and is beloved by both investors and customers alike.Amazon is investing (and hiring) while many other American corporations are milking incumbent businesses, under-investing in research and development, and hoarding cash. To the chagrin of of some traders, Amazon is distinctlyNOT "maximizing near-term profits"--it is sacrificing near-term profits. It is making less money now in the hopes ofmaking more money and creating more value later. And it is ignoring the howls and screams of short-term tradersBabelfish Articles Oct 2011 Page 25
  • 26. who couldnt care less about Amazons long-term prognosis, add nothing to the economy, and just want to makemoney now.If more American companies started to do what Amazon does--ignore short-term pressures, sacrifice near-termprofits, and invest for the long-term--the American economy would start to heal itself quickly. America would createmore innovation, more jobs, and more long-term wealth. And, just as important, more Americans would be able togo back to being proud of our corporations and innovators and entrepreneurs... instead of camping in parks andprotesting them.Read more: http://www.businessinsider.com/thank-you-amazon-2011-10#ixzz1bvXSEQ3eWednesday, Oct. 26, 2011Collateral Material Critical To B2B Technology PurchaseAccording to a new study and analysis by Eccolo Media, with Global Marketing Insite, of U.S. C-level executives, decision makers andinfluencers consume a wide variety of content when considering a technology purchase.Of the five major collateral types covered in the 2010 survey, three showed a significant decline in consumption over the last 12 months.Consumption of:  Product brochures/data sheets went down 11 percentage points, from 83% last year to 72% in 2011  White paper consumption decreased 14 percentage points, from 76% to 62%  Case studies dropped 17 points, from 67% to 50%  Podcasts and video remained more or less unchanged with podcasts climbing only two points and video holding steadyCollateral Used Within 6 Months to Evaluate Tech PurchaseCollateral % of Responding UsingProduct brochures/ data sheets 72%White papers 62Videos/ multimedia files 59Podcasts/ audio files 42Case studies/ success stories 50Source: Eccolo Media, October 2011As new collateral types gain traction in the B2B marketing world, technology purchasers don’t appear to be abandoning any single form ofcollateral en masse. Instead, they’re taking advantage of a broader range of choices, says the report.Respondents asked if they had started using any new types of collateral in the past six months, 34% said no. But among those who had recentlydiscovered a new form of collateral for evaluating technology purchases, the numbers were quite evenly spread among all content types, bothtraditional and non-traditional.28% reported that they began consulting white papers for the first time in the last six months. 24% named company Web pages as a newsource of information, and 20% cited podcasts. The other seven types of collateral were clustered closely together.Info Sources Used in Last 6 Months to Evaluate Tech PurchaseSource % of Respondents UsingWhite papers 28%Company Web pages 24Podcasts/ audio files 20Video 18Social media sites 18Case studies/ success stories 17Blog posts 17Product brochures/ data sheets 16E-books 16Presentations 13None 34Source: Eccolo Media, October 2011The influence of all collateral types is on the rise. When asked to describe the influence of a white paper on the purchasing decision, 65% ofrespondents rated them as “very” to “extremely influential” in 2011, as compared to 41% of respondents in the 2010 survey. When asked tocompare the perceived influence of content types relative to one another, respondents still seem to regard the white paper as superior to otherforms of collateral.Collateral Content Very or Extremely Influential in Final Tech Purchase (% of Respondents)Influential Content 2010 2011Babelfish Articles Oct 2011 Page 26
  • 27. White papers 41% 65%Case studies 39 68Podcasts 44 67Videos 48 62Brochures 47 61Source: Eccolo Media, October 2011The 2011 survey marked the first time respondents were asked about the perceived influence of written collateral when accompanied by a“Share This” button for Facebook, LinkedIn, or Twitter. Of the 52% of respondents who recalled encountering these buttons, 77% said that theyperceived collateral as “much more influential” or “somewhat more influential” on a social networking siteSocial Sharing Button Perceived Influence on CollateralInfluence % of RespondentsMuch more influential 28%Somewhat more influential 49No change 20Somewhat less influential 2Much less influential 1Source: Eccolo Media, October 2011The presence of a “Share This” button is in no way a claim to inherent quality or substance. However, respondents perceive the option to shareas imparting some kind of value.One-half of all local Web searches are currently performed on a mobile device. Multiple industry watchers believe that by 2014, mobile Internetusage will surpass desktop Internet usage. Survey results reveal a shift toward consuming content on the go, with 37% of respondents sayingthat they had consumed collateral on a mobile device. Of those respondents, 33% reported viewing content on a smartphone and 16% on atablet.Though mobile devices were used to view marketing content in 2011, respondents still most frequently use the desktop to view written assets bya considerable margin. Respondents read 56% of white papers, 58% of case studies, and 53% of product brochures/data sheets at the desktop,and overall reported they were more likely to print out written collateral in order to read it than to view it via a mobile device.With the emergence of an exciting form of hybrid collateral, last year 45% of respondents said they had consumed written collateral withembedded audio and video files. That figure increased to 55% this year.More importantly, embedding audio and video files appears to increase the perceived influence of content. 83% of respondents reported that theinclusion of embedded audio content positively or very positively affected the overall influence of the written collateral. For embedded video, thefigure was even more dramatic.Influence of Imbedded Content on Written Collateral (% of Respondents)Influence Audio Files Video FilesVery positively 27% 32%Positively 56 60No influence 17 7Source: Eccolo Media, October 2011The report concludes with suggestions, or “Keys to Collateral Improvement:”  Add the option to share content. Data shows that the simple addition of a “Share This” button significantly enhances the influence of collateral  Embed multimedia content into written collateral assets. Adding audio and video files to written assets measurably increases influence. Assets that don’t include these elements look old and out of date  Rethink white papers. Technology purchasers continue to regard white papers as the most influential type of collateral  Optimize for mobile devices. Mobile devices will become as important as the desktop for viewing marketing content  Reuse is imperative. Redeploy content to meet the needs of different audiences across multiple formats  Revere the Web site. Corporate Web sites are the most frequently used channel for obtaining marketing contentFor additional information, including more graphs and charts, please visit the Eccolo sign in page here for a free PDF file of the complete “2011Social Consumers and the Science of Sharing [INFOGRAPHIC]11 hours ago by Lauren Drell 38Babelfish Articles Oct 2011 Page 27
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  • 30. If you’re buying a car, do you check Facebook? Or do you read up on Kelley Blue Book values and scour the companyBabelfish Articles Oct 2011 Page 30
  • 31. website for every spec, from horsepower to miles per gallon? What about music — do you check Top 40 radio chartsor scope out what your Facebook friends are actually listening to on Spotify?Social media has infiltrated the purchasing funnel, helping consumers make informed decisions, from what to havefor lunch to where to go on vacation. Depending on the decision, sometimes you turn to your social graph, andsometimes you turn to Google. So, as a brand marketer, you want to know what online channels you should betargeting in order to reach the perfect audience for your product.But regardless of what kind of consumer you’re trying to reach or what you’re selling, your SEO better be top notch— search is the most important influence on the web.The infographic below, featuring data from M Booth and Beyond, analyzes the differences between high and lowsharers and various purchasing decisions, helping brands to understand how should be targeting consumers.What kind of consumer are you? Let us know in the comments below.CMO - The Chief Modeling OfficerBy Jason HellerIn theory, I love it when digital budgets get cut. No, really, I’m not crazy.Of course, the budget cuts need to be data-driven decisions -- supported by sophisticated media mix models thatpredict the impact and outcome of media investments.Sure, that’s the way it normally happens… in my dreams.How many marketers or agencies can look themselves in the mirror and say that they truthfully understand the rightmedia mix for their business? That they understand the business impact of shifting investments from one channel toanother?The Elephant in the RoomUnfortunately, most media allocations are based on intuition and debate under the guise of collaborative channelplanning, rather than a systematic approach to media mix modeling.The first step is the hardest -- having the desire to seek the truth, even if it hurts, and even if it proves that the lastfive years worth of planning were inefficient. Marketers must have a willingness to venture outside of their comfortzone -- and trust me, that’s where you’ll be very quickly when you begin to take the right approach to modeling. Butit’s outside of your comfort zone where the magic happens.The Wisest InvestmentMake no mistake about it; econometric media mix modeling is neither simple nor absolute.However, CMOs today struggle with delivering results amid volatile economic conditions, rapidly changing consumerbehavior, and increased demands of accountability. Therefore the best investments you make next year may berelated to the analytics and insights that will help your teams make more informed decisions.Data-Driven -- Not Just for Direct ResponseAll media spend, whether direct response or branding -ocused, has the same objective: to influence and sell productto consumers. The primary difference is where in the sales cycle you reach a consumer, and how long it takes toinfluence the sale. This is extremely overssimplified, but a fact nonetheless.Even within the DR space, most agencies and marketers fail to use available tools like attribution reporting toproperly model a digital mix and prevent duplicate tracking and over-crediting of activation channels like search andretargeting -- a huge issue that plagues every multichannel digital marketer, particularly retailers, whether they takethe time to realize it or not.The most significant challenge that digital media poses to large brand advertisers is that, unlike with traditionalmedia, it’s hard to predict the outcome in the market. To a degree this is because of the small budget allocations todigital, but it is also due to the differences in media currency and the lack of corollary research on investmentimpact. Many brands believe in the power of digital media, but most have yet to quantify the marginal increase toBabelfish Articles Oct 2011 Page 31
  • 32. their businesses as media dollars get shifted between traditional and digital media. We can talk ad nauseam abouthow digital is an essential part of the mix --and it is! – but we must do a better job at proving it.CMOs Are Our ChampionsCMOs are our marketing leadership. Part of their charter should be championing and inspiring “the right way.”Maybe the role of the CMO needs a fundamental shift. Maybe the transformation is underway already: a shift to“Chief Modeling Officer.”Of course, media is just one cog within the marketing machine. CMOs are accountable for overarching marketingplans, and the marketing mix model, if you will. While every brand and business is unique, budgets are normallyallocated to PR, advertising, CRM, events, collateral, promotions, and other buckets based, to a degree, on “the waywe have been doing it” and the “if it ain’t broke, don’t fix it” model.It’s about time we pushed accountability and modeling further than “not broke.”Have any war stories about how marketing investment decisions are made? Leave a comment or hit me on Twitter@jasonhellerPost your response to the public Online Spin blog.See what others are saying on the Online Spin blog.Jason Heller is CEO of AGILITI, a consulting firm focused on digital marketing operations management. Follow him at@jasonheller.The Most Dangerous Phrase In Marketing by Jason Heller, Oct 18, 10:08 AMThere is one phrase -- one mindset -- that holds back more progress, creative thinking and innovation than anyother. It promotes complacency and sends a clear message that stifles curiosity and experimentation. Unfortunately,it is also a fairly common saying within organizations: "Thats not how things are done around here."No organization formally establishes guidelines or policies that prohibit creative problem-solving and new ideas."That’s not how things are done around here" will not be found in any employee handbook, training or orientation.This mindset is not a stimulus, but rather a response. It is the result of either submission -- yielding to a rigidunderlying corporate culture that does not reward new approaches – or the result of fear, when new ideas havebeen shot down in a negative way, or new ideas that were implemented but unsuccessful were treated as abysmalfailures rather than learning experiences.If employees feel as if their efforts are made in vain, or are not challenged to push themselves to serve the bestinterests of the brand or company unconditionally, complacency sets in and inspiration wanes.The digital shift fosters change. It disintermediates industries. It blurs lines that were once clearly defined. In manyways, it creates complexity where there once was order, or at least the perception of order. While the shift itself iswell recognized, its cultural impact within marketing organizations is often overlooked -- or at the very least lacks achampion and steward.We must each find within us the voice to stand behind, and the logic to support, the right recommendations, even ifthe direction may not fit within the mold of the way things have been done in the past.Executive leadership should empower employees to confidently yet prudently explore new methods of consumerinfluence, measurement, applications of data, workflow, collaboration and process. Why restrict your potentialbecause "That’s not how things are done around here"?What do you think? Share your thoughts in the comments or hit me on Twitter @jasonheller.6 comments on "The Most Dangerous Phrase In Marketing"1. Michael Baer from www.stratecutionstories.wordpress.comcommented on: October 18, 2011 at 3:07 p.m.Another phrase that is a creativity and innovation showstopper is "Weve tried that already (and it failed)". As ifthings couldnt possibly different this time, the dynamics different enough, or that simply the times and contextsBabelfish Articles Oct 2011 Page 32
  • 33. arent different enough to try something similar again. Or even, the past failed attempt might have been poorlyexecuted. In any event, users of this phrase are trying to kill new thinking while appearing innovative themselves(having "tried" an approach already). Michael Baer www.stratecutionstories.wordpress.com2. Joe Bencharsky from iNet Entertainmentcommented on: October 18, 2011 at 1:37 p.m.Agreed. The Einstein definition of "insanity" is what I keep running into. People with a mindset that is"forwardlooking" to the 1980s trying to do what worked for broadcasting and fitting to an interactive digitalmedium in and age of social media interaction. The corporate mind does not want to think creatively, and thecreatives are too fearful of venturing into uncharted waters where they cannot justify the innovation. This type ofstagnation and cookie-cutter marketing is far too entrenched in the market and in the corporate culture preventingwhat promises to be a new revolution in customer engagement that could translate to massive sales increases.3. B D from Nonecommented on: October 18, 2011 at 11:24 a.m.Well, most of the video was appropriate, anyway. The end...not so much.4. B D from Nonecommented on: October 18, 2011 at 11:09 a.m.I should have put some context to that youtube video. I googled "thats how things are done" and received this. It isappropriate.5. B D from Nonecommented on: October 18, 2011 at 11:08 a.m.http://www.youtube.com/watch?v=7F37gs8ibZw6. Jon-mikel Bailey from Wood Street, Inc.commented on: October 18, 2011 at 10:46 a.m.I think a lot of this stems from a fear of change. The new blood can be very intimidating to the established order. Itcan be tough to let "the staff" come up with new ideas but those ideas tend to be right on point. We encourage ourteam to be open and to share their ideas with us. Great post and words to live by in this day and age.Leave a CommentGoogle is not a conventional company, and we dont intend to become one. True, we share attributes with theworlds most successful organizations - a focus on innovation and smart business practices comes to mind - but evenas we continue to grow, were committed to retaining a small-company feel. At Google, we know that everyemployee has something important to say, and that every employee is integral to our success. We provideindividually-tailored compensation packages that can be comprised of competitive salary, bonus, and equitycomponents, along with the opportunity to earn further financial bonuses and rewards. Googlers thrive in small,focused teams and high-energy environments, believe in the ability of technology to change the world, and are aspassionate about their lives as they are about their work.Attribution Science: Blondes, Brunettes & Non-Convertersby Anto Chittilappilly, Tuesday, Oct. 25, 2011Recently a mail order cosmetics and hair products company launched a test direct mail campaign in which they sentcoupons to a percentage of their in-house mailing list. The conversion rate of the campaign was about 10%. Themarketer then decided to roll out the campaign to an un-mailed portion of their list, but wanted to focus on thesegment that had the highest propensity to convert. After some analysis they found that 45% of the conversionsfrom the test campaign were from blondes, 35% brunettes and 20% were other.Based on this information, they rolled out a new campaign only to blondes, expecting better than a 10% responserate. But the conversion rate of the rollout dropped to 8.3%. After some serious head-scratching they decided toBabelfish Articles Oct 2011 Page 33
  • 34. analyze the people who received the coupons but did NOT convert, and found that were 55% blonde, 20% brunetteand 25% other. So they launched a third campaign directed only at brunettes and produced an 18% conversion rate.Converters & Non-Converters in The Attribution FormulaWhen any marketing attribution management solution is developed, a decision must be made right upfront on whichavailable data is going to feed the attribution process. Obviously the mathematical science that’s employed tocalculate the amount of credit to be attributed to every channel, campaign and tactic used by marketers can onlyutilize the data that’s made available. So if certain data within an organization is excluded and deemed unimportant-- such as the “non-converter” data in the example above, before that data has been mathematically proven to beunimportant -- then that solution is inherently suspect.And frankly, doesn’t the application of even a simple, common-sense barometer find it obvious that only when thetraits associated with the non-converting population are compared to those associated with the convertingpopulation can marketers identify the difference between the two (and by implication the traits that have an impacton conversions)? But despite this apparent no-brainer, attribution solutions exist in the marketplace that exclude alldata (traits) from the non-converting population.Only Your Hairdresser Knows for SureNow, to put this in a true cross-channel attribution context, instead of hair color, think of brunettes as channel “A”and blondes as channel “B” – or, since attribution is actually a multidimensional exercise, think of brunettes as agiven set of channel, publisher, creative, size, price or date traits and blondes as a differing set of traits. In a very realsense, a marketer only has the complete picture of her marketing performance if she looks at the population thathas been exposed to her marketing efforts as a whole—and can prove or disprove the importance of ALL the data(traits) that has been included. Only then can the most informed, accurate conclusions be drawn from theattribution solution, and most effective optimization strategies be enacted as a result.Post your response to the public Metrics Insider blog.See what others are saying on the Metrics Insider blog.Anto Chittilappilly is Founder and CTO of Visual IQ, a marketing business intelligence company that provides the end-to-end insight needed to execute successful campaigns, deliver maximum ROI and measure multicampaignattribution.How Recruiters Use Social Networks to Screen Candidates [INFOGRAPHIC]15 hours ago by Erica Swallow 44Over the past few years, we’ve seen social media used in the job market in a number of ways — startups, smallbusinesses and large corporations alike are diving into the socialverse to find top talent, and job seekers are likewisegetting creative with social media.Social media monitoring service Reppler recently surveyed more than 300 hiring professionals to determine whenand how job recruiters are screening job candidates on different social networks.The study found that more than 90% of recruiters and hiring managers have visited a potential candidate’s profile ona social network as part of the screening process. And a whopping 69% of recruiters have rejected a candidate basedon content found on his or her social networking profiles — an almost equal proportion of recruiters (68%), though,have hired a candidate based on his or her presence on those networks.Check out the infographic below for more results from the survey, including what details on a candidate’s socialprofile make recruiters tick.Babelfish Articles Oct 2011 Page 34
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  • 36. Moving from Transaction to Engagement12:30 PM Thursday October 20, 2011by R “Ray” Wang | Comments (11)Babelfish Articles Oct 2011 Page 36
  • 37. Mobile enterprise, social business, cloud computing, advanced analytics, and unified communications areconverging. Armed with the art of the possible, innovators are seeking to apply disruptive consumer technologies toenterprise class uses — call it the consumerization of IT in the enterprise. The likely results include new methods offurthering relationships, crafting longer term engagement, and creating transformational business models. Its partof a shift from transactional systems to engagement systems.These transactional systems have been around since the 1950s. You know them as ERP, finance and accountingsystems, or even payroll. These systems are designed for massive computational scale; users find them rigid andtechie. Meanwhile, weve moved to new engagement systems such as Facebook and Twitter in the consumer world.The rich usability and intuitive design reflect how users want to work — and now users are coming to expect thesame paradigms and designs in their enterprise world.Engagement systems share nine common traitsA few thought leaders have helped drive the thinking on systems of engagement. Geoffrey Moore has discussed howsystems of engagement will drive knowledge worker effectiveness and productivity. Dion Hinchcliffe of Dachis groupdetails the transition from systems of record to systems of engagement in how the social web and open internet arechanging business. As with the shift to the Internet, organizations that miss this shift from transactional systems toengagement systems will face dire consequences.Our initial research identifies nine characteristics of engagement systems that differ from the transactional systemsof yesteryear (see the table below for a historical view):1. Design for sense and response. Engagement systems "listen" to assess status, sentiment, and context. Forexample, detection of negative sentiment could lead to a discount on your next purchase or a proactive phone call toaddress an issue. These systems go beyond transactional systems that focus on reliability, stability, and continuousimprovement.2. Address massive social scale. Engagement systems seek to master social networks. Social scale requires constantfeedback from networks of people and objects. LinkedIn is an example of how we connect, collaborate, and sharewith each other in a career aligned social network. Transactional systems focus on addressing massive computingscale.3. Foster conversation. Engagement systems support two-way conversations. Chat, video, and sharing featuresenable conversations among individuals, teams, and even machines. Transactional systems push one-waycommunications in a dictatorial approachBabelfish Articles Oct 2011 Page 37
  • 38. 4. Utilize a multitude of media styles for user experience. Engagement systems embrace the multi-media, social-leduser experience. Media channels include Twitter, video, text, and "likes." Transactional systems limit themselves tomachine based interfaces.5. Deliver speed in real time. Engagement systems focus on real-time speed. Users can see activity streams, real-timealerts, and notifications on all their devices. Transactional systems aim for just-in-time delivery.6. Reach to multi-channel networks. Engagement systems touch corporate, personal, and machine based networks.A Skype call or instant message reaches out to both the corporate directory and your own personal network.Transactional systems narrowly focus on departmental and corporate networks.7. Factor in new types of information management. Engagement systems embrace loosely structured knowledgeflows. Comments, audio files, videos, and chats dont fit neatly into corporate relational tables. Transactionalsystems ensure reliability of highly structured records and data.8. Apply a richer social orientation. Engagement systems by nature rely on heavy social orientation. The designnatively incorporates social media tools such as RSS feeds, LinkedIn, Facebook, and Twitter. Transactional systemsexpress a tangential or just plain awkward social orientation.9. Rely on smarter intelligence. Engagement systems are powered by business rules and complex event processingengines. Users can change the flow of a task using visual tools. Transactional systems remain in a hard coded, rigidstructured approach.Experiential and personal fulfillment systems will power the next waves of innovationThe evolution to engagement systems from transactional systems will usher in an era of experiential systems whichapply context to deliver agility and flexibility. Early categories in this space include gamification platforms, contextaware services, and decision support systems.As we envision the future, we see personal fulfillment systems playing a key role in breaking down the corporate andconsumer walls. These people-to-people networks embrace an intention-driven design point to meet the challengeof delivering on a massive individual scale. Pattern-based models will drive the intelligence of these systems. Earlyexamples include the work that Doc Searls began in 2006 on what hes dubbed vendor relationship management.VRM provides customers with the means to bear their side of the relationship burden. Organizations that fail tomake the leap to engagement systems will fall behind. Those that seek to drive innovation will move to experientialsystems and push the envelope to build out personal fulfillment systems.• Shyam Madhavan Sarada Today 03:57 AMNice overview — thanks, Ray.I have a question or two though. When was any business/systems model not intention driven? Why are we calling itthat now? Buyer behaviour always had intention built-in. I dare say that the current scenario should be looked atinfluence-driven, not intention. In the inter-networked social networking context, buyer intention seems to be (moreand more) reduced to going with the flow. Informed choice has just taken a new form, and information and choiceare being separated so that they can presented as (at least to appear to be) the same. By presenting pattern-basedanalyses of data as intelligence, isnt that what we are doing?As a corollary, arent we just creating a new business myth that appears to empower the consumer rather than todictate to him/her? What percentage of consumers believe that their vendors are truly going to accommodate theirneeds continually? And in conclusion, isnt that just a strategy of influence? Do you think a business that does notinfluence consumer behaviour (as opposed to letting them decide what they should do) can survive?1 person liked this.• R.S.Bains 10 minutes agoBabelfish Articles Oct 2011 Page 38
  • 39. Highly impressed with the content of your article.• Agrackin 10 minutes agoRay, nice job. Engagement to fulfillment phases support a new social phenomenon of ‘telling my story’. As peopleare physically more mobile (and often isolated) they need to find ‘meeting places’ to express. Obviously media is thecatalyst- whether Opra, social networking or mobile communications such as texting.This migration is changing the economic base on the technology industry. Look at the explosion of start-up on socialor mobile. And look at the traditionalist companies racing to make their announcements that they too have ‘one ofthese’.However the traditionalist will leverage in different ways. We did a lot of research in Enterprise Social Networking vs.open social. And many of the same ‘personal fulfillment’ elements apply, but in a secured and managed and morelimited context, of course.• Rahulpandhare 16 minutes agoisnt it the working style of generation Y (they are used to these technologies right from thier schoo days )demandingfor more of engagement applications like enterprise grade social platforms and unified communication tools. Also itsgeneration Y attitude of entrepreneurship which they want to use in their professional life is also a driving factor forengagement systems. I think that transaction based systems will be the foundation for building the engagementbased systems. Transaction bases systems will take care of efficiency while the engagement systems will take care ofeffectiveness.• OETSP-21 Research Program 27 minutes agoYes.• Pawel S. Czarny Today 06:08 AMGreat matrix and development overview.Nevertheless, it can be discussed if we are indeed eliminating transaction mechanisms in general or if they are justgetting smaller, quicker and more intuitive. As Oliver Williamson states in his extension of Ronald Coases theory onthe transaction cost approach, transactions can also be internal, i.e. emotional, which should cover parts of yourelaboration in personal fulfillment systems. Hence, you still have transactions, albite mostly emotional. A moresuitable title for your article could be Moving from external to internal transactions - Digital emotional engagementor something down that road.Great to get flashed backed to transaction based economics by the way - lets hope that core theories by people suchas Coase, Williamson and e.g. Schein will not become forgotten land in the floats of spuriously glazed theories andpublications.Pawel S. Czarny• Bob_Egan Yesterday 11:51 PMGreat article Ray - congratulations.• Steve Ardire Yesterday 08:41 PMYes agree Experiential and personal fulfillment systems will power the next waves of innovation so #1- 9 fit in nicelyhere but you forgot to include predictive discovery engines especial the ones that do serendipityBabelfish Articles Oct 2011 Page 39
  • 40. • R Ray Wang Yesterday 09:46 PM in reply to Steve ArdireSteveThanks for your comments. Predictive discovery engine play a key role. As important, privately held trust networks,currency trading systems, and personal data stores.What do others think?Ray• rstrad1 Yesterday 06:34 PMThank you for the informational article. Our systems are moving in an ever more social direction at a break neckspeed. Geoffrey Moore did outline knowledge worker effectiveness and with his new book Escape Velocityhttp://www.escapevelocitybymoo... , hopefully he can show existing companies how to incorporate newtechnologies to pull their companies out of the past and stay competitive.• R Ray Wang Yesterday 09:45 PM in reply to rstrad1Rstrad1 thanks for pointing that out. IMHO, the challenge is how quickly people are willing to adopt new technologyand how well we think about the design of these new experiences.RayBattle For Aisle 12by Steve Smith , Thursday, Oct. 20, 2011“Good afternoon, Target shoppers. We need a sales associate in Aisle 12 to break up a skirmish among mobile retailapps. Referee needed in aisle 12, please. Thank you.”My guess is that there is a quiet war going on in the aisles of many retailers these days over who will get themobilized shopper’s attention over smartphones at that critical point of final decision. Never in retailing history havewe seen such a potential disruptive force enter into what had been a hermetically sealed domain, the in-storeexperience.Shoppers are bringing competitors with them into the store -- from Red Laser UPC scanners to Amazonand eBay apps. Retailers will soon pine for the good old days when all they had to do was position themselvesagainst a competitor’s print circular that a savvy shopper carried into the store.How does a retailer address the challenge? The best defense appears to be a good offense. No store chain wants tostart racing to the bottom on price. But if the merchant can craft a compelling and valuable enough mobileexperience of its own for shoppers, then the app platform can become a surrogate salesman rather than a hijacker.Arguably, the first wave of retailer apps helped a user get insight into store locations, sales and current inventory aswell as product and user reviews and specs. Best Buy, Home Depot, Staples and OfficeMax have been good earlyleaders in this trend. But should the next step be apps that do more and actually enhance and streamline theshopping experience?Aisle411 is an iPhone app that is building a set of shopping services from a core aisle navigation technology. The appis designed to take a shopping list or even a recipe and locate the items in a store. “We have taken in-store inventorydata and floor maps and tied location intelligence to all the products in a store,” CEO Nathan Pettyjohn tells me.You can build a shopping list online or on a phone, through typing, voice recognition (using Nuance technology) or aUPC scan. You can use the recipe database to build meals, even searching for recipes featuring certain ingredients,and then have the necessary items dumped onto your list. I found a fondue recipe in the app, which placed all theBabelfish Articles Oct 2011 Page 40
  • 41. ingredients on my shopping list and then let me check in at the local Safeway. The app told me which aisle containedmost of the items, let me check them off and maintain a purchase history.Pettyjohn contends that the in-store mobile element has to be different from the Web product research functions.Simply bringing the Web into the store is not good enough. “If you look at the path to purchase in a simplified view,then online does a good job of researching and planning and getting you to the door. But once you hit the door, it isa different experience. We connect the door to the transaction. We are an engagement tool in the store to take youthrough the experience and to purchase decisions.”Pettyjohn says the idea here is to offer obvious value to the shopper and at the same time get an insight into in-storebehaviors that will be invaluable to marketers. Indeed, knowing that a shopper has pretzels on the list is a greatopportunity for early aisle411 advertiser Coca-cola to insert a reminder to get something to drink with that. Ofcourse you can almost taste the opportunities for conquesting customers in-store with rival items on their list withspecial offers.All well and good, but there is the practical matter of getting the raw data needed to make the in-store experienceconsistent across enough retailers to appeal to shoppers. In my area the app recognizes a handful of nearby Lowes,Giant and Safeway stores but not the destinations I actually shop at regularly. Honestly, in terms of actual practicalityfor me, it is more of a clever proof of concept than a tool I can use now.The app has a direct route for users to suggest a store for inclusion. Pettyjohn says the company receives asuggestion at the rate of one every 12 minutes, and is using consumer demand and reviews to appeal to retailers forpartnerships.Which of course raises the thornier problem of why a major retailer might want to hand its customer over to astartup to manage the in-store experience. After all, mobile platforms have now introduced so many new layers,trying to insert themselves between the merchant and their customer all with their own app: goods manufacturers,mobile coupon aggregators, product scanners, mall owners, shopping incentives apps like Shopkick, check-in socialnetworks, etc. etc. Arguably no one any longer “owns” a customer. But mobile introduces a dizzying array oftouchpoints and byways through which the consumer may get to the retail experience. Building a new app brand inthe midst of this seems a steep climb.Pettyjohn counters that aisle411 is modeling itself more after Google Maps in that its SDK will give retailers access tothe system so they can build it into their own apps as well. Likewise a couponing app like Yowzaa, or an incentivesapp like Shopkick could also leverage the technology. “We don’t want to do rewards or coupons,” says Pettyjohn.“We want to do in-store navigation.” The company seems to feel that knowing the purchase intent on that level, soclose to point-of-sale, is the place to be.And that may be so. As a consumer I myself have not settled on which app or apps I go to before shopping, althoughthe retail brand in my mind is still the largest magnet of my attention. I think in terms of destinations, not third-partyapp functionality that I can layer atop the destination. The real skirmishes will occur on my home screen over whichapp to choose, or in the aisles over which mobile provider gives me the best information I need at the point ofdecision. As various mobile enablers like aisle411 integrate with the other layers of solutions that are building a newmobilized shopping experience, the looming battle will be over who controls that priceless data.Post your response to the public Mobile Insider blog.See what others are saying on the Mobile Insider blog.Contributing writer Steve Smith is a lapsed academic who saw the light, bolted the university and spent the lastdecade as a digital media critic and consultant. He is chair and programmer of OMMA Mobile and OMMA Behavioralconferences from MediaPost and is the Digital Media Editor at Media Industry Newsletter (MIN) from AccessIntelligence. Contact him here.Babelfish Articles Oct 2011 Page 41
  • 42. Dont Bother Wowing Your CustomersThe notion of going above and beyond customer needs is so entrenched that managers rarely question it. Butdelighting your customers may be a waste of time and energy. In fact, most customers just want a simple, quicksolution to their problem. Here are three ways to give it to them:• Prevent callbacks. Customers hate having to return when their issue isnt resolved. Focus on heading offfuture issues, not just addressing current ones.• Make use of complaints. Use feedback from disgruntled customers to determine the biggest pain points.Reach out to unsatisfied customers and find out what you can do differently.• Empower the front line. Dont reward speed over quality. Measures such as "average call time" encouragereps to get off the phone quickly rather than fully addressing customer concerns.2012 Digital Planning GuideRobin Neifield | Contact Robin | Comment | Print versionMarketers everywhere are scrambling to set their marketing and digital marketing strategies for the coming year,and encountering obstacles ranging from corporate politics to shifting or disappearing budgets to a lack ofappropriate information upon which to base that strategy. Most would welcome a tested approach to help define astrategy in a way that can drive planning and action and get internal support, but first we have to agree on what thatstrategy is. A budget allocation is not a strategy; neither is a goal a strategy - regardless of how well-defined that goalmight be. The strategy is the much-needed plan to get you from your current state to your desired state.This is an outline of a 12-step plan to help you understand your current state, define your desired state, and plotyour strategy to bridge the gap from one to the other for a successful 2012 in digital marketing.Understanding your current state:1. Review past results. In an industry like ours, the past should be viewed primarily as a directional guidebecause all of the opportunities and channels have morphed in significant ways in the last year. Dont ignore thestats but delve well-beyond them to the important insights about audience behaviors, channel preferences, andother learnings that can be applied to the opportunities present now.Start with the past years results (or another appropriate time period) against goals. Look at channel-specificimpacts. Identify both the spectacular winning and losing efforts of the past and dissect them to understand whythey fell in one camp or the other. Gather all of your stats - site, social media channels, email lists, etc. (includingtrending data) and dig in. Identify any dips or spikes in activity or performance and explain them.2. Review environmental realities and changes. As noted, the world continues to spin while we make our plansand you want your new strategy to be relevant, so take into account any channel or industry changes. Do you havenew competitors? New distribution options? New regulations? Supply chain issues? Budget challenges? Bad PR or afailed product launch to overcome? Factor the real world into your planning and identify key opportunities as well asrisk factors.Document competitor activity including any new entrants noting spend, approach (channels, tactics), messaging,assets, and results. Set trackers to follow their progress and try and look for patterns that suggest where they areseeing results.Look for any changes in your audience. Mine your stats in various channels to establish demos and any trendinginformation you can use. Use your partners to gather behavioral data.Defining your desired state:Babelfish Articles Oct 2011 Page 42
  • 43. 1. Articulate business goals. The marketing strategy and goals are nonsense if they do not ultimately reflect andsupport the business goals. Start at the top to understand what business moves and impacts on your organizationplans to make for the year and how you can accomplish them. Translate those business goals into specific,quantifiable objectives with timeframes that can help define your optimal marketing strategy.2. Articulate channel goals. Review all your options and identify how each channel is best used for your overallmarketing goals. The channels and options are not interchangeable and each should have its own set of objectives.Look at how each one can contribute to the overall goals. In a best case, they help and support each other. Someelements of the plan might be great at driving awareness or traffic, while others create an excellent platform forremarketing, for example. Budgets, timeframes, messaging, and other elements should be revised according to yourplan needs. Dont forget your offline elements in this mix.3. Articulate testing goals. What questions do you want to be able to answer about your audience, products,business, or campaigns this year? Set yourself up for success by structuring those tests to ensure the answers inadvance.Setting your strategy:1. Confirm total budget. Unless you live in a fairytale marketing world, this budget is probably handed down toyou before you have a chance to set the strategy. If the established budget does not give you the ability to meetyour marketing goals, then you must prioritize, clearly communicate the lost opportunities, and set revised goalsthat make sense within the budget parameters. To make the most of your budget, establish out-clauses that donttie your hands as you optimize across channels once you start getting results.2. Brainstorm initial approaches/tactics and messaging. Allocate budget across goals (not channels!). This isoften the step where people start their strategy work - in a room with a white board and not enough information toget the job done well. The tactics that make up your strategy should be the steps that take you from your current toyour desired state. Even the best, most innovative ideas may not take you down the path you need. Be sure tocontinually check back to your defined path while involved in your brainstorming so you wont be tempted offcourse.Now that you have a set budget, you need to tie that budget back to your goals - not the channels. Dont forgetcreative or production budgets, email broadcast fees, talent, stock, or other miscellaneous add-ons.3. Allocate budgets for an initial period. It may be tempting to set the strategy for the entire year and washyour hands of the exercise, but in reality the plan is never set in concrete and should be optimized regularly for bestresults. One way to ensure regular check-ins is to mandate them by planning for an initial period andinstitutionalizing the regular review. The length of that initial period may depend on the seasonality and otherfactors specific to your business.4. Set project timelines checking assets and resources for the proposed plans. Its reality-check time. You havedone your homework and stayed on plan and in budget to define your strategy, but there are still risk factors. Now isthe time that strong project management can save the day. Do you have the time, expertise, and resources toexecute on your strategy? Double-check with vendor partners on specs and lead times so you dont have anysurprises.5. Sit on the finished plan for at least a couple of days and then review it with fresh eyes. Have you accountedfor mobile, social, email, site impacts, integration with offline elements? New browser updates or devices? In yourgut, does this feel like the right way to go or a watered down compromise? Ask someone not involved in the planproduction to review the background information and completed plan. An outside consultant can be very helpfulhere.6. Set appropriate internal expectations on results. Make sure everyones expectations are set on the scale andspeed with which you expect to see results. Set official check-in dates with a dashboard that tracks results againststated goals and outlines recommended next steps. This should allow you to continue to march forward toward thatdesired state without uninformed organizational nervous twitches creating panicked off-plan responses.Babelfish Articles Oct 2011 Page 43
  • 44. 7. Create a concise mission statement for your plan. Use this mission statement to rally the troops, remindeveryone of the goals, and to test the new inputs that will invariably come up during the year. If you cant articulatewhat you want to achieve with this multi-faceted, multi-dimensional plan in a sentence or two, start back up at stepNo. 1.Have you started down the strategy road for 2012?DM9 lança Núcleo de Inteligência e Performance18 de outubro de 2011 • 14h10Novo núcleo na DM9A DM9DDB apresenta ao mercado o Núcleo de Inteligência e Performance. Vinculado à vice-presidência de Mídia eBusiness, comandado por Mônica de Carvalho, o NIP é formado por profissionais que aliam o conhecimento técniconas mais modernas práticas de SEO, SEM e BI aplicado à construção de marcas.Entre os resultados práticos do trabalho está, por exemplo, a competência para antecipar ondas comportamentaisdos consumidores no ambiente on line, gerando insights e oportunidades para planejamento, mídia e criação. Outroserviço é o monitoramento da construção da imagem digital da marca nas redes sociais, com determinação depolicies a serem obedecidas e entrega de relatórios detalhados com análise de impactos, índice de sentimentos einfluenciadores potenciais.Estratégias de publicidade que extrapolem campanhas e anúncios já deixaram de ser uma tendência e ganharamstatus de realidade consolidada, ao menos na DM9. “Hoje é muito difícil apresentarmos uma proposta ao clientesem considerar estratégia de construção da imagem digital da marca e monitoramento da repercussão nas redessociais. E construímos o processo de uma maneira que essa ferramenta digital tem uma relação direta e indissociávelcom o trabalho off line. O importante é o conteúdo que trabalhamos, independentemente da plataforma onde elese se concretize”, afirma Mônica.O NIP é coordenado diretamente pelo diretor de Mídias digitais e Performance Fábio Saad e tem nos seus cargos-chave Wagner Brahm*, especialista em SEO e Usabilidade, Armando Neto, especialista em BI e Marcos Saurim,especialista em Links Patrocinados e Mídia de Performance. “Nos últimos anos, a participação dos meios digitais noinvestimento total em mídia no mercado brasileiro não passou de 6%. Na DM9, já há mais de dois anos superamos abarreira dos 10%. A expectativa com a formalização Núcleo de Inteligência e Performance é crescer ainda maismostrando ao mercado a expertise e o domínio que a DM9 tem em usar essas ferramentas em prol do resultado docliente”, afirma Fábio Saad, diretor de Mídia.Além dos serviços prestados pelo NIP, a agência também oferece ao cliente diversas outras ferramentas quepermitem um trabalho de construção de marcas realmente convergente. A frente da filosofia de convergência está odiretor Joca Guanaes: “As possibilidades são inúmeras. Temos, por exemplo, social teams dedicados a cuidar dasredes sociais de clientes. Temos uma diretoria de conteúdo que propõe a construção de marcas com ferramentasque entregue assuntos relevantes ao consumidor. O importante é que a agência e clientes deixaram de trabalhar emum mundo de escolhas para trabalhar em um mundo de somas. Isso é convergência”, comenta.Apesar de ser um Núcleo, vale ressaltar que o NIP está completamente integrado ao processo da agência,trabalhando de maneira integrada com Atendimento, Planejamento, Criação e Mídia do começo ao fim dacampanha. “Em 2005 fizemos uma opção: ser uma agência convergente. Não acreditamos em dois mundosapartados. Somos on e off, somos digitais por natureza, somos conectados com marcas e consumidores. O NIP éBabelfish Articles Oct 2011 Page 44
  • 45. mais uma etapa neste modelo que nunca estará completo e perfeito, mas que está sempre em evolução, sempre emconstrução. Que sempre será Beta”, finaliza Sergio Valente, presidente da DM9.Email + Social Integration: More Useful Than A Holy Grailby Mike May, Wednesday, Oct. 19, 2011 I’m not letting anybody in on some big secret when I say that social media is the next great communication channel. We email marketerslove it because it reminds us of our inbox comfort zone in so many ways: it is inexpensive and scalable, providesimmediate response and feedback, is able to be managed by our existing in-house resources, and promisestremendous ROI.Social is also similar to email in that it is permission-based. As email marketers, we already have the skills needed toearn an audience over time, develop content strategies to keep them involved, and suffer the consequences ofabusing the attention our audience has given us. Sure, the tactics we employ to do all this in social media are verydifferent from the ways we operate in email, but the strategy and skillset are the same.Combining email and social media has become a sort of Holy Grail quest for marketers and the vendors who supportthem. It is an apt analogy. Combining the conversation and social spreading power of social media with the analyticsand visibility of email would lend some much needed accountability to social media, increasing its adoption amongcompanies that rely principally on email and earning it a protected line item status in the budget. As marketers, it’seasy to love the potential of social media, but hard to quantify what resources to allocate to it until metricscomparing email to social are available.These analytics tools to integrate and measure email and social are now starting to appear on the market, and Iexpect the conversation will quickly turn from SWYN and “Use email to grow your social audience and vice versa”towards a new round of engaging tales of integrated communications.We could all use some guidance on what to look for and how to use these new tools, so I’d love to write that helpfularticle. The only trouble is that I can’t -- I don’t know yet what tactics will work well, and which won’t bear fruitbecause the tools are so new and the metrics they provide are unprecedented.Instead, maybe it’s worthwhile to spend some time on what email and social integration will not look like, so wedon’t look like Monty Python in our quest for marketing’s greatest treasure.Here are some things that we can’t do with the next round of email + social integration:Improve customer engagement intelligence. Social analytics can provide a lot of intelligence on what messages aregenerating responses, but fall well short of email in their capacity to identify who in particular is responding. Yes, youcan see who on your page and feed is liking this or retweeting that, but this amounts to anecdotal information, notinstitutionalized learning in the way our subscriber email metrics show up. There is no automated way to identifywho from your email list is interacting (or even following) you socially, or vice versa. If you want to tag social activityback to a customer database, you need to do it manually. For most marketers, this means it won’t be done.Combine email’s targeting with social’s warm brand-fuzziness. One challenge with social media is that targeting isdifficult. It’s true that on Facebook you can restrict status updates to custom segments of a page’s fans, but otherthan geography, how do you go about and create meaningful segments? With email, it’s easy to segment based onprevious message responders (or non-responders), past customers, or any other attributes you collect and attach toa record.In social media, there is no such record you have access to. And if you did, would you use it? Targeting in a socialcontext is tantamount to filtering, or limiting the number of people who can interact with your message and spreadit around. For most marketers, that outcome truncates the whole social value proposition. So, no, this isn’t part ofthe email + social Holy Grail either.Analyze the same metrics across all channels. It would at least be great to compare social media using the samemetrics we’ve grown accustomed to in email, like delivery, open rate and click-through, right? That’s not on thenear-term horizon either. Of that list, only click-through is a common denominator across the inbox, Facebook andTwitter. (Facebook’s Insights are improving with respect to communicating how many people are seeing content,Babelfish Articles Oct 2011 Page 45
  • 46. which is a suitable proxy for Email Opens. But I don’t know if this will be available through an API for externalintegration.)By using a tracking URL for each channel that ties back to an integrated analytics platform, it is possible to see howmany clicks for a given message are coming from email, Facebook and Twitter respectively. But even here marketershave to think of the channels differently. With email, each recipient gets a unique tracking URL, so the aggregatemetrics are a roll-up of all the activity around a given link or message across all subscribers. With social media, it is asingle tracking URL per channel, whether there are 10 fans and followers or 10,000. There is no way to know howmany of the clicks come from unique DNA, or how many come from outside the fan and follower base.It’s worth pointing out that nobody ever found the Holy Grail. (Indiana Jones doesn’t count, and Monty Python isn’texactly revered for their marketing best practices.) Similarly, we should focus on the new possibilities email + socialintegration do open up for us, instead of hunting for a treasure that will never be found. I don’t know about you, butwhen it comes to marketing, I’ll take good tactics over a hidden treasure any day.Post your response to the public Email Insider blog.See what others are saying on the Email Insider blog.Mike May is Head of Insights at Real Magnet, a customer contact and intelligence platform for marketers, combiningemail, mobile, social media, fax, surveys, ecommerce and analytics. Contact him here.3 Types of Mentoring You Should OfferCompanies with abundant mentoring opportunities are more likely to retain their people. To achieve this, offer arange of mentors for people at different career stages. Here are three types of mentoring you should consider:• Buddy or peer mentors. In the early stages of a persons career, a "buddy" can help speed up the learningcurve. This relationship helps the protégé understand how things work at the organization.• Career mentors. After the initial period at a workplace, employees need to have a senior manager serve as acareer advisor and advocate.• Life mentors. A life mentor serves as a periodic sounding board when one is faced with a career challenge.Organizations cant necessarily offer a life mentor but they can encourage seeking one.The Rise of Cross-Channel UX DesignBy Tyler TatePublished: October 17, 2011“The message is now abstracted from the medium, and the book is a channel-independent experience—whetherheld in its physical form, heard as the spoken word, or read on an eReader, mobile phone, or desktop computer.”A few Saturdays ago, I was walking around Greenwich in southeast London when I decided to peruse the localbookshop. Drawn to a display titled “Utopias and Dystopias,” I noticed the book A Brave New World sitting besideGeorge Orwell’s 1984, which I had read and remembered enjoying. Curious about the association between the two, Ipicked up A Brave New World and glanced over the back cover. I then pulled out my phone and searched Google tosee what others were saying about the book and noted that it is often considered one of the top-100 novels of alltime. My mind was settled: I wanted to read this book. But rather than walking, book in hand, to the checkoutcounter, I instead used my phone to navigate to Amazon’s Kindle Store, where I typed in the name of the book andused their 1-click ordering to purchase the book. Leaving the bookshop empty handed, I caught the next bus home.On the way home, I pulled out my tablet device and started reading page 1 of A Brave New World. Figure 1 showssome of the devices on which Amazon Kindle applications run.Figure 1—Amazon Kindle eReader and Kindle applicationsBabelfish Articles Oct 2011 Page 46
  • 47. Books, newspapers, and magazines have not only gone digital, they’ve gone ubiquitous, contextual, and formless.The message is now abstracted from the medium, and the book is a channel-independent experience—whether heldin its physical form, heard as the spoken word, or read on an eReader, mobile phone, or desktop computer.The invention of the printing press transformed the physical object that is a book from the output of humantranscription to that of mass production, ushering in the era of information as a physical object. More recently, massadoption of the World Wide Web and a plethora of Internet-connected devices has brought us into the digital era ofinformation. But we are on the cusp of yet another technological sea change. The pendulum that swung fromphysical to digital is now swinging back to the real world. However, this time information has become formless,contextual, and ubiquitous. In the words of Andrea Resmini and Luca Rosati, “*Information+ is bleeding out of theInternet and out of personal computers, and it is being embedded into the real world.” *1+ Welcome to the newcross-channel, multiplatform, transmedia information age.A Sign of What’s to Come“Seamless, cross-channel experiences are the way of the future, as technology fades into the background and thepersonal, physical, and social context determine the methods we use to interact with information.”As goes the book, so goes every product and service under the sun. Seamless, cross-channel experiences are the wayof the future, as technology fades into the background and the personal, physical, and social context determine themethods we use to interact with information. But this isn’t a problem for the distant future; designing effectivecross-channel experiences is a problem that we must address here and now.RetailMost brick-and-mortar retailers mail out the occasional print catalog, provide phone service, and have online stores,with the more adventurous offering smartphone-friendly Web sites or applications, as in the example shown inFigure 2.Figure 2—Outdoor retailer REI’s iPhone app, Web site, print catalog, kiosk, and flagship storeBabelfish Articles Oct 2011 Page 47
  • 48. However, these channels aren’t isolated from one another; increasingly, they overlap. Forrester’s Patti FreemanEvans found that 70% of consumers research online, then buy offline. [2] A 2010 report by NCR Corporation [3]found that• 43% of consumers want to use their mobile phone for price comparison while out shopping.• The vast majority of consumers prefer a seamless experience across channels:According to this report: “87% want a similar way to access products and services … whether online, in the store, ontheir mobile phone, or using a self-service device.”Travel“Traveling by plane is a quintessentially multichannel experience.”Traveling by plane is a quintessentially multichannel experience. Once you know where you want to go, there is themessy business of booking the flight—perhaps using your laptop; checking in 24 hours before your flight on yoursmartphone; traveling to the correct airport terminal, then using the kiosk to print your boarding pass; interactingwith a customer service person to check in your luggage; running the security gauntlet, where you present eitheryour paper boarding pass or an electronic version on your phone; and finally, sitting down in your seat on theaircraft, where you browse the movie selections on the entertainment console.A 2011 report on the usability of travel Web sites by Webcredible [4]—in addition to placing Virgin Atlantic’s Website at the top of its list, shown in Figure 3—emphasized the importance of providing consumers with a seamlesscross-channel experience:“As consumers become more and more demanding in the digital space, the travel industry will need to be morededicated to the usability and user experience across all of their channels to gain customers and build loyalty.”Figure 3—Virgin Atlantic’s check-in kiosk, iPhone application, Web site, and in-flight entertainment consoleBabelfish Articles Oct 2011 Page 48
  • 49. Banking“Each channel is likely convenient in some situations, but a hassle in others.”Managing your money often results in a dynamic interplay between channels, as Figure 4 shows. But while you couldlikely achieve many tasks at your local bank branch, a nearby ATM, over the phone, on your home computer, or onyour smartphone, each channel is likely convenient in some situations, but a hassle in others. Your mobile phone iswell suited to quickly checking your account balance on the go. However, you might find it easier to use onlinebanking on your laptop to pay the monthly bills.Figure 4—Bank of America’s ATM, online banking, iPhone application, and a store branchErnst & Young’s 2011 report on global consumer banking *5+ found that, while 66% of respondents were dissatisfiedwith their existing mobile banking, competition among banks to provide a seamless experience across channels willbe fierce:“Practical innovations across channels that leverage technology to deliver a more seamless and personalizedexperience will therefore be a major competitive battleground in all retail banking markets.”Babelfish Articles Oct 2011 Page 49
  • 50. Cross-Discipline Collaboration“Effective cross-channel experiences demand strategic leadership and multidisciplinary cooperation.”Unfortunately, we’re a long way off from realizing this vision of seamless interactivity across channels. Touchpointsoften lack awareness of one another. While a retailer’s catalog indicates the SKU for every product, the sameretailer’s Web search doesn’t understand SKUs. While a mobile app might be simple to use, its corresponding Website may be complicated and frustrating. How can we do better?Above all else, cross-discipline collaboration is the answer. A 2010 survey by Econsultancy and Foviance [6] foundthat, while 90% of companies consider the multichannel experience to be important, organizational structure is themost significant barrier to success. Business units often lack the incentive to work together and sometimes evencompete against other business units in the same organization for market share. Effective cross-channel experiencesdemand strategic leadership and multidisciplinary cooperation. Figure 5 shows the responses to the question, “Whatare the three greatest barriers preventing your organization from improving the multichannel customerexperience?” from this survey.Figure 5—Barriers preventing organizations from improving multichannel customer experiencesService design pioneer G. Lynn Shostack described one useful tool for defining multichannel experiences: serviceblueprints. These maps of interactions center on a customer’s actions, paying close attention to the channel—ormore broadly, the “physical evidence”—through which each action occurs. The service blueprint outlines not onlyvisible interactions with a customer, but also the behind-the-scenes steps that must take place to facilitate a smoothprocess for the customer. Shostack describes these as onstage, backstage, and support processes, respectively.When infused with actual ethnography, the service blueprint can be a potent tool with which to synchronize acompany’s cross-channel efforts.Figure 6—A service blueprint created by Brandon Schauer [8]Babelfish Articles Oct 2011 Page 50
  • 51. Cross-Channel Design Principles“In the coming post-desktop era, we must reach across disciplines and think more holistically to produce not just asingle, self-sufficient user interface, but to deliver context-aware search experiences across multiple channels.”Alongside strategic leadership and collaboration, there is a handful of design principles that provide a shining light tolead us through this new maze of interconnectivity. Peter Morville has elucidated six facets to what he calls the“Cross-channel Crystal,” *9+ but here we’ll focus on just three elements. A successful cross-channel experience is:• consistent—Users should be able to accomplish a given task in a like manner across all channels. Forinstance, a bank customer who is experienced in paying bills on a Web site should find the correspondingsmartphone bill-paying facility familiar, even on first use.• optimized—Each channel should play to its strengths. As Pete Bell points out [10], people expect mobiledevices to be location aware, while they expect in-store kiosks to be inventory aware. Desktop applications areoptimized for large screens; mobile apps for small ones. Optimization is sometimes in tension with consistency.• continuous—Each channel must be aware of all the others. Add a bicycle helmet to your shopping cart onthe Web, and it should appear in the cart on your phone. Put down your eReader on page 104, and your phone’sreading application should pick up at page 104.In a word, it’s all about context. In the coming post-desktop era, we must reach across disciplines and think moreholistically to produce not just a single, self-sufficient user interface, but to deliver context-aware search experiencesacross multiple channels. No one is saying it will be easy—only that the reward will be well worth the effort.References[1] Resmini, Andrea, and Luca Rosati. Pervasive Information Architecture: Designing Cross-Channel User Experiences.Burlington, MA: Morgan Kaufmann, 2011.*2+ Evans, Patti Freeman. “Profiling the Multi-Channel Consumer.” Forrester Research, 2009. Retrieved October 15,2011.*3+ NCR. “NCR 2010 Global Consumer Research.” NCR, 2010. Retrieved October 15, 2011.*4+ Webcredible (2011). “Flights Online: Ensuring Your Site Takes Off.” Webcredible, 2011. Retrieved October 15,2011.*5+ Ernst & Young. “Global Consumer Banking Survey 2011.” Ernst & Young, 2011. Retrieved October 15, 2011.*6+ Econsultancy and Foviance. “Multichannel Customer Experience Report.” Econsultancy, 2010. Retrieved October15, 2011.*7+ Shostack, G. Lynn. “How to Design a Service.” European Journal of Marketing, Volume 16, Issue 1, 1982.Babelfish Articles Oct 2011 Page 51
  • 52. [8] Image by Brandon Schauer.*9+ Morville, Peter. “Cross-channel Strategy.” SlideShare, 2011. Retrieved October 15, 2011.*10+ Bell, Pete. “Search As a Multi-channel Experience.” UIE, 2011. Retrieved October 15, 2011.Thank You, SteveJeremy Lockhorn | Contact Jeremy | Comment | Print version"Cool."Thats the only thing Steve Jobs ever said to me. Although, I never had the privilege of meeting him, so technically hedidnt say it; he emailed it.And it wasnt actually directly to me; it was to a client I was working with at Apple at the time. She had emailed Stevewith an overview of an innovative marketing idea we had been working on, and that was his simple feedback.I immediately printed the email and hung it on my office wall. Today, almost six years later, its still hanging thereeven though Ive moved offices at least twice. Its a bit crazy, thinking back on it. I had - indirectly - received a singleword of positive feedback from a man Id never met about a program I was driving with a team of 10 other folks. Andyet, somehow, it was one of the most rewarding and inspiring moments of my career.For me, it was a very personal validation. Its not too much of a stretch to think that Steve (or at least the companyhe co-founded) was one of the reasons - perhaps the main reason - that Im in the advertising industry at all. I wasdrawn to the industry when I saw an early Macintosh II running some kind of desktop publishing software. Id longbeen a computer and gadget nerd, but didnt exactly know where that passion could take me, career-wise. And thenI saw this machine and watched designers moving words and images around a mockup of a newspaper ad with solittle effort. It was like magic. It sounds so simple now, but it blew my mind. It struck me as a unique marriage of arts,communication, and technology. I decided then and there that I wanted to be in advertising and have never lookedback."Thank you, Steve." The sentiment has been written and expressed in thousands of unique and powerful ways sincehis passing. For me, its more than a thank you for the groundbreaking products that have set the bar for todaysdigital lifestyle. Its more than a thank you for being a relentless perfectionist. More than an acknowledgement ofthe brilliant advertising he helped create. More than praise for an inspirational, innovative, and remarkable leader.Its a heartfelt show of gratitude for playing some small part in guiding me toward a career that I love. Thank you foropening my young eyes to the limitless possibilities of technology and for having the vision to create a companyrooted in the marriage of liberal arts and technology.And years later, its also a show of gratitude for the smallest bit of personal recognition - a tiny indication that I wasdoing something right in the eyes of someone I had come to respect and admire. Its not much, but Ill take it. Andmaybe even frame it.Rest in peace, Steve. And thank you.The Secret to Dealing With Difficult People: Its About YouDo you have someone at work who consistently triggers you? Doesnt listen? Takes credit for work youve done?Wastes your time with trivial issues? Acts like a know-it-all? Can only talk about himself? Constantly criticizes?Our core emotional need is to feel valued and valuable. When we dont, its deeply unsettling, a challenge to oursense of equilibrium, security, and well-being. At the most primal level, it can feel like a threat to our very survival.This is especially true when the person youre struggling with is your boss. The problem is that being in charge ofother people rarely brings out the best in us."Power tends to corrupt, and absolute power corrupts absolutely," Lord Acton said way back in 1887. "There is noworse heresy than the office that sanctifies the holder of it."Babelfish Articles Oct 2011 Page 52
  • 53. The easy default when we feel devalued is to the role of victim, and its a seductive pull. Blaming others for howwere feeling is a form of self-protection. Whatever is going wrong isnt our fault. By off loading responsibility, wefeel better in the short-term.The problem with being a victim is that you cede the power to influence your circumstances. The painful truth whenit comes to the people who trigger you is this: Youre not going to change them. The only person you have thepossibility of changing is yourself.Each of us has a default lens through which we see the world. We call it reality, but in fact its a selective filter. Wehave the power, to view the world through other lenses. There are three worth trying on when you find yourselfdefaulting to negative emotions.The Lens of Realistic Optimism. Using this lens requires asking yourself two simple questions when you feel yourebeing treated badly or unfairly. The first one is "What are the facts in this situation?" The second is, "Whats thestory Im telling myself about those facts?"Making this distinction allows you to stand outside your experience, rather than simply reacting to it. It also opensthe possibility that whatever story youre currently telling yourself isnt necessarily the only way to look at yoursituation.Realistic optimism, a term coined by the psychologist Sandra Schneider, means telling yourself the most hopeful andempowering story about a given circumstance without subverting the facts. Its about moving beyond your defaultreaction to feeling under attack, and exploring whether there is an alternative way of viewing the situation thatwould ultimately serve you better. Another way of discovering an alternative is to ask yourself "How would I act hereat my best?"The Reverse Lens. This lens requires viewing the world through the lens of the person who triggered you. It doesntmean sacrificing your own point of view but rather widening your perspective.Its nearly certain that the person you perceive as difficult views the situation differently than you do. With thereverse lens, you ask yourself, "What is this person feeling, and in what ways does that make sense?" Or put morestarkly: "Wheres my responsibility in all this?"Counterintuitively, one of the most powerful ways to reclaim your value, when it feels threatened, is to find a way toappreciate the perspective of the person you feel devalued by. Its called empathy.Just as you do, others tend to behave better when they feel seen and valued — especially since insecurity is whatusually prompts them to act badly in the first place.The Long Lens. Sometimes your worst fears about another person turn out to be true. He is someone who bulliesyou unreasonably and seeing it from his perspective doesnt help. She does invariably take credit for your work.When your current circumstances are incontrovertibly bad, the long lens provides a way of looking beyond thepresent to imagine a better future. Begin with this question: "Regardless of how I feel about whats happening rightnow, how can I grow and learn from this experience?"How many times has something that felt terrible to you in the moment turned out to be trivial several months later,or actually led you to an important opportunity or a positive new direction?My last boss fired me. It felt awful at the time, but it also pushed me way out of my comfort zone, which is where itturned out I needed to go.Looking back, the story I tell myself is that for all his deficiencies, I learned a lot from that boss, and it all serves mewell today. I can understand, from his point of view, why he found me difficult as an employee, without feelingdevalued. Most important, getting fired prompted me to make a decision — founding the company I now run — thathas brought me more happiness than any other work Ive ever done.Stop Procrastinating...Now9:25 AM Tuesday October 11, 2011by Amy Gallo | Comments (44)Babelfish Articles Oct 2011 Page 53
  • 54. It seems that no one is immune to the tendency to procrastinate. When someone asked Ernest Hemingway how towrite a novel, his response was "First you defrost the refrigerator." But putting off tasks takes a big hit on ourproductivity, and psyche. Procrastination is not inevitable. Figuring out why you postpone work and then takingconcrete steps to prevent it will help you get more done and feel good about yourself.What the Experts SayAccording to Ned Hallowell, a psychiatrist and the author of 12 books, including Driven to Distraction, delaying workis often a symptom of how busy you are. "We procrastinate because we all have too much to do," he says. And ofcourse, we want to dodge things we dont like. "Many people procrastinate because they fear the drudgery or thedifficulty of the task they are avoiding," says Teresa Amabile, the Edsel Bryant Ford Professor of BusinessAdministration at Harvard Business School and coauthor of The Progress Principle. But, as you have likely learned, itdoesnt pay to dawdle. "Putting it off doesnt make it go away. Getting it done does," says Hallowell. Here are fiveprinciples to follow next time you find yourself deferring important work.1. Figure out whats holding you backWhen you find yourself ignoring or delaying a task, ask yourself why. Hallowell points out that there are two types oftasks most often deferred:• Something you dont like to do. This is the most common one. As Hallowell says, "You dont put off eatingyour favorite dessert."• Something you dont know how to do. When you lack the necessary knowledge or are unsure of how to starta job, you are more likely to avoid it.Once youve identified why youve put something off, you can break the cycle and prevent future bouts ofprocrastination.2. Set deadlines for yourselfOne of the simplest things you can do is create a schedule with clear due dates for each part of a task. "As soon asyou get the project, chunk it down into a few manageable segments that you can complete in sequence," Amabileadvises. Then, assign deadlines for each piece. "Put an appointment in your calendar to work on a small piece of thenext segment each day to allow yourself to get it done a bit at a time," she says. These "small wins" make the workmore manageable and contribute to your sense of progress. And achieving them is much easier than trying to barrelthrough a complex project.Setting deadlines also makes sure the project doesnt get buried. For things that you are likely to put off, addreminders in your calendar or put a Post-It on your computer screen. Use whatever visual cues will ensure you dontavoid the project.3. Increase the rewardsWe often dally because the reward for doing a certain assignment is too far off. Regina Conti, an associate professorof psychology at Colgate University and an expert in motivation, provides the example of doing your taxes. "A personmay want to complete their taxes to avoid the legal penalties of not doing so, but because those penalties are far inthe future and the task is a boring one, they will not have much incentive to get started with the project," she says.To make a task feel more immediate, focus on short-term rewards, such as getting a refund. Or if there arent any,insert your own. Treat yourself to a coffee break, or a quick chat with a co-worker once youve finished a task. Youcan also embed the reward into the task itself by making it more fun to do. Work with someone on a particularlydifficult project or set up a game for yourself so that doing the task isnt so boring or onerous.4. Involve othersOne of the principles Hallowell often repeats in his work is "Never worry alone." If you dont know how to dosomething, ask for help. Turn to a trusted colleague or a friend for advice. Or, look for an example of the project youare working on to use as a starting point. "Others are a great source of extrinsic motivation," says Conti. Askingsomeone to review your work can spur you to get started knowing they will expect it. You can even enter an anti-procrastination pact with a co-worker: share what you are working on and hold each other accountable to setdeadlines.Babelfish Articles Oct 2011 Page 54
  • 55. 5. Get in the habit"People throw up a hand and say Im such a procrastinator as if they have no control," says Hallowell. "You do havecontrol over this and youll be very proud when you change it." Hallowell says that he used to be a procrastinator buttrained himself to stop. "I dont procrastinate at all now. I just do it," he says. There are immediate benefits whenyou start getting things done right away, and its a habit you can cultivate. Amabile suggests tracking yourimprovement. "Spend just five minutes a day to note the progress you made, any setbacks you encountered, andwhat you might do the next day to enable further progress," she says. She recommends you do this in a work diary.Then see yourself, and talk about yourself with others, as someone who gets things done. "The most powerful event,for maintaining positive inner work life, is making progress in meaningful work," says Amabile.Principles to RememberDo:• Identify which tasks you are most likely to put off• Use deadlines to motivate you to get things done within a certain timeframe• Reward yourself for reaching milestonesDont:• Call yourself a procrastinator as if it is an intrinsic part of who you are• Tackle arduous tasks on your own — ask others to help you get over the hump• Try to finish a project in one sitting — break it down into smaller, achievable chunksCase study #1: Know whyLisa Freitag, a marketing consultant for an online company based in Silicon Valley, noticed she was putting offplanning on a major marketing event. Every time she thought about what needed to be done, she got overwhelmedand decided to work on something else. This was odd for her: she was used to taking on big projects and blazingthrough them, regardless of their complexity. This project was different in that it involved several other people,including many top executives. "I procrastinate when I have to rely on other people. I prefer to just take somethingand run with it," she says. For this event, she was worried about depending on others, especially busy leaders withmany competing commitments.Lisas anxiety wasnt helping her and she needed to get the project going. "I wrote down a list of everything that hadto happen, mapped it out on a calendar and then backed out to figure out what I needed to do first," she says. Sincemany of the tasks required input from others, she wrote down what she needed from each person by when. Thishelped her to make clear requests to everyone involved. "I realized I was playing a very important role in keepingpeople on track and the executives involved appreciate that thats what I was doing," she says. The project stillcaused Lisa stress but she got through it. "I made a deal with myself. Each day, I told myself Im going to work on itfor 20 minutes now and then 20 minutes in the afternoon," she says. Once she put a little time into it, she found itgot easier with each day. Lisa also set a long-term reward for herself: when the project is complete shes planning ateam dinner.Case study #2: Keep it top of mindJanet Benton was an executive assistant at a medical device company when her boss assigned her an important butlower-priority project she was having trouble completing. Soon, Janet realized she too was putting it off. Shecouldnt find the time to even start the project with all of the other pressing tasks on her plate. But since she had noone to delegate the project to, she decided to make progress on it in small increments. "The trick is to recognizethere are steps that can be taken even if you cant get to the final destination on the same day," she says. She brokethe project down into separate tasks that she could accomplish in 15 minutes. Using Outlook, she then scheduledtime twice a day — once in the morning and then again after lunch — to take on two of the tasks. "If you giveyourself an Outlook reminder and it keeps popping up youre more likely to deal with it," she says. Before she lefteach day, she wrote down the two things she was going to do the following day.Babelfish Articles Oct 2011 Page 55
  • 56. She also kept herself accountable. "The final fail-safe was to secretly vow that two days could not pass without somekind of progress," By doing that, she was able to gain momentum on the project and it became part of her dailypriorities. "That overlooked project was soon completed and turned back over to a very grateful boss. And it was offmy desk, which made me happy as well," she says.Janet also developed other coping mechanisms to make sure projects that she might put off stay in her physical lineof sight. "I always put that pesky project in an off-color folder, and put it under my to-do list at the days end, on topof my keyboard or computer." That way when she comes in the next day, she has a reminder that she cant let it go.Red Bull Formula Face usa facetrackingTecnologia dispensa teclados, mouses e controles. Internauta controla carro por meio de movimentos faciaisEduardo Mustafa| ››13 de Outubro de 2011 • 16:59A Red Bull lança um jogo na web onde o usuário comanda um carro de corrida apenas com seus movimentos faciais.O Red Bull Formula Face (veja aqui) dispensa teclados, mouses e controles. A tecnologia facetracking desenvolvidapara o game é simples: basta mover a cabeça para direita ou para a esquerda para guiar o carrinho pelo circuito. Oobjetivo do jogo é obter o maior número de pontos. Piscar os olhos turbinam o motor. O jogo gratuito estádisponível em português e disponibiliza quatro diferentes pistas.Stefan Becker, da Buzzin Monkey, empresa responsável pelo conceito e pela implementação do Red Bull FormulaFace, falou sobre o jogo inédito. “Pela primeira vez, é possível controlar o jogo com gestos e expressões do rosto”,completa Becker.Birth of a SalesmanBehind the rise of Jeff Bezos and Amazon: Richard L. Brandt on the founders Texas roots, the sites chaotic earlydays, why negative reviews are allowed and his increasing use of personal data.By RICHARD L. BRANDTJeffrey Preston Bezos was 4 years old when he first arrived at his grandfathers cattle ranch in Cotulla, Texas. TheLazy G is a sprawling 25,000-acre spread in the southwest part of the state—an unspoiled habitat of mesquite andoak trees, the home of whitetail deer (popular among local hunters), wild turkeys, doves, quail, feral hogs and sheep.Jeffs maternal grandfather, Lawrence Preston Gise, was a just-retired rocket scientist who was ready to trade in hismissile research for the simple and demanding life at the ranch, and he wanted to share that life with his grandson.Until he was 16 years old, Jeff spent every summer there. Keith WebbBabelfish Articles Oct 2011 Page 56
  • 57. Jeff Bezos, Amazon.com chairman and founderAt the ranch he learned to clean stalls, to brand and castrate cattle, to install plumbing and to handle other ranch-hand tasks. One day, his grandfather towed in a dilapidated D6 Caterpillar bulldozer with a stripped transmission.Fixing it would be tough: He would have to remove a 500-pound gear from the engine. No problem; he simply builthimself a small crane. Jeff helped."One of the things that you learn in a rural area like that is self-reliance," Mr. Bezos said. "People do everythingthemselves. That kind of self-reliance is something you can learn, and my grandfather was a huge role model for me:If something is broken, lets fix it. To get something new done you have to be stubborn and focused, to the point thatothers might find unreasonable."***In the summer of 1994, Mr. Bezos quit his job in New York as a vice president at the financial-services firm D.E. Shaw.He and his wife, MacKenzie, moved to Seattle to take advantage of the explosive growth of the Internet and to startAmazon. The companys original name, Cadabra, was nixed after someone misheard it as "cadaver."Time Life Pictures/Getty ImagesWhen the site first launched in 1995, everyone at the company was working until 2 or 3 in the morning, kneeling ona concrete floor, to get the books packed, addressed and shipped. Jeff Bezos in 1998, above.Babelfish Articles Oct 2011 Page 57
  • 58. Their first rental, a three-bedroom house in the suburb of Bellevue, cost $890 a month. Mr. Bezos chose it in partbecause it had one crucial requirement—a garage, so that he could boast of having a garage start-up like SiliconValley legends from Hewlett-Packard on. The garage had actually been converted into a recreation room, but Mr.Bezos figured it was close enough.The site was launched on July 16, 1995—just as masses of people started moving onto the Internet and before manycompetitors had created strong commercial sites.Mr. Bezos moved the company to an industrial neighborhood that it shared with a needle-exchange program and ashuttered pawnshop. He had 1,100 square feet of office space on the second floor and 400 square feet in thebasement to use as a warehouse. The desks were made from cheap doors, with sawed-off two-by-fours for legs. Thewarehouse could store just a few hundred books on their way from the distributor to customers.Thanks to discounts of 10% to 30%, orders started coming in as soon as the site launched. At first, there were a half-dozen orders per day. One of the programmers set up the computers so that a bell would ring every time an ordercame in. A great novelty at first, it quickly got annoying and had to be turned off. Jeff BezosThree days after launch, Mr. Bezos got an email from Jerry Yang, one of the founders of Yahoo. "Jerry said, We thinkyour site is pretty cool; would you like us to put it on the Whats Cool page? " Mr. Bezos later recalled. "We thoughtabout it some, and we realized it might be like taking a sip from a fire hose, but we decided to go ahead and go forit." Yahoo put the site on the list, and orders soared.By the end of the week, Amazon took in over $12,000 worth of orders. It was hard to keep up. That week, thecompany shipped just $846 worth of books. The following week brought in nearly $15,000 worth of orders, and theteam was able to ship just over $7,000 worth of them.At launch, the site wasnt even truly finished. Mr. Bezoss philosophy was to get to market quickly, in order to get ajump on the competition, and to fix problems and improve the site as people started using it. Among the earlymistakes, according to Mr. Bezos: "We found that customers could order a negative quantity of books! And wewould credit their credit card with the price and, I assume, wait around for them to ship the books."During the first few weeks, everyone at the company was working until two or three in the morning to get the bookspacked, addressed and shipped. Mr. Bezos had neglected to order packing tables, so people ended up on their kneeson the concrete floor to package the books. He later recalled in a speech that, after hours of doing this, hecommented to one of the employees that they had to get knee pads. The employee, Nicholas Lovejoy, "looked at melike I was a Martian," Mr. Bezos said. Mr. Lovejoy suggested the obvious: Buy some tables. "I thought that was themost brilliant idea I had ever heard in my life," he said.Despite what seemed to be a pathetically amateurish operation, Amazon grew up very quickly once it was launched.By October, the company had its first day logging in 100 book sales. In less than a year, it had its first hour with anorder of 100 books. Word kept spreading, despite the fact that the company did virtually no advertising its first year.Babelfish Articles Oct 2011 Page 58
  • 59. The one exception: Mr. Bezos hired mobile billboards to cruise by Barnes & Noble stores displaying the question,"Cant find that book you wanted?" along with Amazons website address.The companys customer service—which Mr. Bezos later called "the cornerstone of Amazon.com"—started with thefounder himself answering emails. By 1999 it was manned by 500 representatives packed into cubicles andanswering customers questions.The people handling these emails were generally overqualified and underpaid, with no experience in bookselling.Disaffected academics were popular because they were well-read and could supposedly help find books on a hugevariety of topics. They were paid about $10 to $13 an hour, but with the possibility of promotions and stock optionsdangled before their glazed eyes. The best of them could answer a dozen emails a minute. Those who droppedbelow seven were often fired.One customer-service manager recalled that, when the staff got a week and a half behind in answering emails—despite putting in 12-hour days, seven days a week—Mr. Bezos called her to complain. When she told him theycouldnt work any harder, he came up with a solution: They dedicated one weekend to competing with each other tosee who could get through the most unanswered emails.During that 48-hour period, everyone worked at least 10 hours beyond their regular shifts. Each person was given acash bonus of $200 for every thousand messages he or she could answer. It cleared out the backlog.In the very early days, Mr. Bezos had employees pick out the 20 strangest titles sold every week and awarded a prizefor the strangest. Some of the winners: "Training Goldfish Using Dolphin Training Techniques," "How to Start YourOwn Country" and "Life Without Friends."One of his more controversial early decisions was to allow customers to post their own book reviews on the site,whether they were positive or negative. Competitors couldnt understand why a bookseller would allow such a thing.Within a few weeks, Mr. Bezos said, "I started receiving letters from well-meaning folks saying that perhaps youdont understand your business. You make money when you sell things. Why are you allowing negative reviews onyour Web site? But our point of view is [that] we will sell more if we help people make purchasing decisions."Over time, Mr. Bezoss unusual management style began to develop. Hes not always a "nice" CEO. He can inspireand cajole but also irritate and berate. He can see the big picture—and micromanage to distraction. Hes quirky,brilliant and demanding.One former executive recalled that, at an offsite retreat where some managers suggested that employees shouldstart communicating more with each other, Mr. Bezos stood up and declared, "No, communication is terrible!"He wanted a decentralized, even disorganized company where independent ideas would prevail over groupthink. Heinstituted, as a company-wide rule, the concept of the "two-pizza team"—that is, any team should be small enoughthat it could be fed with two pizzas.From the beginning, Mr. Bezos was fanatical about squeezing from Amazon.com every incremental degree ofusefulness. New features were often simple things, like 1-Click ordering—whose notorious patent was called by onelaw journal "probably the most memorable example of an unoriginal software patent." It forbids any other onlineretailer from using a one-click purchasing option without paying a royalty to Amazon.An elderly woman once sent an email to the company saying that she loved ordering books from the site but had towait for her nephew to come over and tear into the difficult-to-open packaging. Mr. Bezos had the packagingredesigned to make it easier to open.He continues to try to improve the site. In June 2008, Amazon filed a patent application titled "Movementrecognition as input mechanism." Customers may soon be able to make purchases simply by nodding their heads attheir computer, Kindle or cellphone. Industry wags have dubbed it the "1-Nod patent."Last December, word leaked out about another new patent, for a system that enables people who get gifts throughAmazon to return them even before they arrive. If Aunt Mildred has a habit of sending unwanted gifts, the patentsays, the site will include an option to "convert all gifts from Aunt Mildred." (The patent includes the name of thepresumably fictitious relative.) It allows the receiver to track when the well-meaning relative buys a gift for him andBabelfish Articles Oct 2011 Page 59
  • 60. to change it to something more desirable before it ships. Gift recipients can also apply other rules such as, "Noclothes with wool."The idea is not only to please fussy would-be gift recipients; it also could save Amazon millions of dollars inpurchases that dont have to be exchanged. The patent lists Mr. Bezos as the inventor.—Mr. Brandt is the author of "The Google Guys." This essay is adapted from his new book, "One Click: Jeff Bezos andthe Rise of Amazon.com."Group Ms Gotlieb Muses On Future: Media Management Greatest Challengeby Steve McClellan, Yesterday, 12:00 AMIn the world of big media companies one thing is certain, said Irwin Gotlieb, CEO of GroupM, the media oversightarm of WPP. Today’s giants, like Google and Facebook, will be the CompuServes of tomorrow -- gone and forgotten.So it’s best not to get too obsessed with the fact that they are the media behemoths of the moment.That said, Google and Facebook are the current big boys on the block, along with Apple, with tentacles in mostmedia sectors -- and advertisers are rightly grappling with how best to engage them. But sometimes, said RobNorman, North American CEO of GroupM, the wrong numbers tend to dazzle agencies and marketers alike.He noted, for example, that Starbucks is one of a hundred or so entities with 20 million or more “fans” on Facebook.It’s a big number, but it’s misleading by itself. A better metric for gauging marketing value is how many fans activelycomment on the fan page or even just express a “like” with a click of the mouse, said Norman. And that number is alot smaller — about 83,000.Rather than focusing on growing its fan base further, Norman added, the coffee marketer should be focused ontripling or quadrupling the number of fans who actively show an interest in the brand. “That’s where the real valueis,” he said. “How much can you talk about coffee?” added Gotlieb. “If you don’t put interesting content on the page,nobody will look at it.”Both executives spoke at a session at GroupM’s “What’s Next” conference in New York on Thursday. Gotlieb saidthat mismanagement probably killed off or rendered irrelevant some media giants before their time.Case in point: MySpace, bought by News Corp a half-dozen years ago (and recently sold for a fraction of its originalvalue). MySpace was a favorite among minorities including African-Americans and Hispanics, the latter being thefastest-growing ethnic segment in the U.S. “News Corp. missed an opportunity to make it the platform of choice” forminority social networkers, he said.Management is an issue for everybody in the media space going forward as the sector becomes more fragmentedand complex, Gotlieb said. The goal is maintaining the delicate balance of integrating the plethora of new and futureplatforms without diluting the specialized skill sets required to keep them all operating at maximum efficiency.“That’s a really huge challenge,” Gotlieb said, adding that it should be the industry’s top priority.As consumers have become more empowered with an array of devices to consume media and communicate withbrands, advertisers have to “think less about physical channels and more about emotional channels and all the dataaround them and the content that can be created around them,” Gotlieb said. It is that data and content that willdrive marketers’ abilities to effectively engage consumers.Marketing, added Norman, has shifted from one-way mass marketing to one-to-one relationship marketing to whathe called “mass customization.” The next shift, he said, would be to an approach he dubbed “self-customization,”where marketers in effect provide opportunities for consumers to design products and services “on their ownterms.” Meanwhile, privacy is a major concern, said Gotlieb, because it only takes one or two bad actors to tarnish --if not damage -- the entire industry.While he hopes the industry will be allowed to self-regulate, that’s an outcome that is far from certain, with nearly adozen privacy bills winding their way through Congress. If the impact of those bills is to withhold from marketers asignificant portion of the data that could be gathered about consumers, that would make the entire marketingprocess less efficient and more costly.Babelfish Articles Oct 2011 Page 60
  • 61. “The consumer will be the loser,” Gotlieb said, because those higher costs will translate to higher prices for goodsand services.Understanding the New Facebook Page InsightsThu, 13 Oct 2011 10:30:01 -0400David KarnstedtAs a guy that has been in the digital marketing space for 20 years, Ill admit that it was at first difficult to believe thatsocial media marketing is that much different than all other forms of online advertising. Understanding how it isdifferent, and thus measuring its value, however, is a discussion that is top of mind for all forward-thinkingmarketers and should be for many reasons.With Facebooks new Page Insights launch last week smart marketers will now become even wiser with moreinsights than ever before on how to reach more people on Facebook with their message, as well as create moreopportunities to "go viral." Ill explain further what I mean.There are multiple ways that people interact with a brand on Facebook. They visit a brands page, check-in, but mostoften interact by seeing news about the brand in their personal news feed. In fact, users are 40- to150-times morelikely to consume branded content in the news feed than to visit the fan page itself. These conversations happeningin the news feed present a big opportunity for brands to reach more than just their fans – but also friends of thosefans, which is an important step in increasing awareness, acquiring new customers, and most importantly, drivingsales.According to a recent comScore white paper, friends of fans typically represent a much larger set of consumers thana brands fans -- 34 times larger, on average, for the top 100 fan Pages, and 81 times larger for the top 1000 fanpages. Friends of fans also are much more likely than the average consumer to visit a store, website, and evenpurchase a product or service. For example, Starbucks fans as well as friends of fans spend 8% more in stores andengage in 11% more transactions than the average online consumer.Thus, it has become critical that marketers understand how the content they create on the page gets shared andpassed on through fans and their friends. With Facebooks new page insights, brands can see how the messages theyput on their page reach people throughout the Facebook network, and they can also optimize for the messages --whether they are photos, videos, questions, etc. –- that are working the best to reach the most people.Additionally, Facebook has made it easier for its API partners to layer their own innovations on top of its platform toprovide additional insights such as benchmarking against industry competitors and in-depth breakouts by organic,viral or paid media.Marketers should use Page Insights to improve how much people share content on a brands Page with others –which in turn increases virality and reach.With Facebooks Page Insights, we now have deeper metrics on how far and how often a brands message is beingshared. Not only is this what all marketers care about – reach and frequency of message – but its the kind of sharingthat is best – word-of-mouth sharing among friends. Marketers should analyze the new post analytics data to seewhat content creates the most engagement and do more of that to increase virality and brand awareness which willdrive growth and adoption amongst friends of fans.Babelfish Articles Oct 2011 Page 61
  • 62. For this marketing vet, measurement is mission critical. If you dont know if something is working, you cant optimizeeither within a channel or cross-channel. And although we as an industry can always make further improvements,the new Facebook Page Insights is a great first step.Intels Guide to the FutureBrian David Johnson. (Credit: Intel)“My job is to look 10 to 15 years out and come up with a vision as to how people will interact with computers.”That’s how Brian David Johnson, Intel‘s first and so far only futurist, describes what he does in a nutshell. I spentabout 45 minutes on the phone with him the other day, discussing the future, technology, and what Johnson refersto as “futurecasting” – which, he adamantly states, is not about predicting the future. But rather determining avision of the future that he and Intel can then work to build.“It sounds science-fictiony,” he laughs. “But it’s ultimately pragmatic. Chip designs have lead times of 5-10 years, soit’s important to have an understanding of how people will want to to interact with computers. I’m literally workingon chips for 2020 right now.”Developing a Vision of the FutureI obviously couldn’t let it lie there. What do you take into account when planning the future? The answer is bothintriguing and quite unlike most futurists I know. Johnson’s first stop is the social sciences. He works with Dr.Genevieve Bell, a cultural anthropologist who has been at Intel since 1998. Their teams work with ethnographers,social scientists, and others to understand the current state of the culture and try to figure out where it’s going.The next step is then looking at the hardware. Johnson and his team work with computer scientists to look at thecurrent state of the art in hardware, software, and algorithms, as well as the research coming up. The tech data ismeshed with the social sciences data to answer a simple question: how can we apply this technology to capturepeople’s imaginations and make their lives better?“At that point,” Johnson says. “I start to look at the trends. Which is really where most people start.”Combining all of this data, Johnson then develops what he calls a “vision of the future” that his team can work tobuild.And after that?“Then I hit the road! I travel around talking to people in government, in the military, in universities, in industry; I tryto focus not only on customers, but also a broader collection of companies and businesses. We talk about more thanjust the future of computers, we talk about the future of computation and where they see the world going. I ask:What do we need to do today? In 2015? In 2020? and let it evolve our thinking, it actually makes our vision for 2020much more realistic. It’s a really iterative process.”I was fascinated by the process, but given that Johnson has been at Intel for 10 years, I had to ask: has he ever beensurprised by a trend?“Yes,” he says. “This is embarrassing, but I’ll share it anyway. Back in 2004-2005, we were working on futurecastingfor 2015. Not that long ago, right? But we were sure that the future of entertainment was going to be all aboutdemand. On-demand movies. But when our researchers came back, we found that the number one thing thatpeople wanted was access to the Internet. Because it afforded them more personalization and more than just on-demand. Basically, people were telling us, ‘It’s the Internet, stupid.For us, this had huge implications. We realized we needed to work towards a computational platform thatmeaningfully combines TV with the personalization and choice of the Internet. That’s much more complicated thanon-demand.”A Rough Draft of 2020Babelfish Articles Oct 2011 Page 62
  • 63. Johnson and his team are currently working on futurecasting 2020. Obviously, it’s not done yet. But I asked if I couldget a “rough draft” of what we should be looking for. And one of the things he’s modeling for the year 2020 is the“Secret Life of Data.”“Algorithms will talk to algorithms, machines will talk to machines, and humans won’t be involved. When data takeson a life of it’s own, what will that do? How will we remember that when that data comes back, it’s ultimately meantfor humans? It has to make our lives better. We can’t forget that.”That’s not all, he adds. There’s also what he refers to as the “Ghost of Computing” – what happens when computersget so small that they disappear, and we have an entire world filled with computational intelligence?These two factors add up to another thing that concerns Johnson about 2020: “The Future of Fear.” When we haveall these devices, all this hardware and software, people are going to start asking “what does it mean to be safe andsecure in this world?”“People are frightened about things that they don’t have a lot of information about. I want to start a culturalconversation about what we should be afraid of and what we shouldn’t. I want to avoid any new ‘boogeymen.’ Wehave to look at not only the future we want, but the future we don’t want – and work as hard as we can to avoid it.”The Tomorrow ProjectAnother major part of Johnson’s work is the Tomorrow Project. This is the public facing side – where Johnson takeshis research out into the world and gets people talking about the future.“It’s a personal passion of mine that everyone should be an active participant in the future. Too many believe thatthe future is a fixed point that we’re powerless to change, but the reality is that the future is created every day bythe actions of people.”To that end, Johnson focuses on engaging in conversations with scientists, the public, and even entertainers. He’sspoken with synthetic biologists, security experts, and even Will.i.am. They’re long conversations, which are thenposted on Intel’s site to “hopefully spark a broader conversation about the future we all want to live in.”Another aspect of those conversations about the future is science fiction. “I’m a science fiction author, and I use thatin my futurecasting process. Even if you’re not a science-fiction fan, we all know that a good story is about people.”“Don’t worry,” I said. “I grew up on Asimov, Heinlein, Ellison and a boatload of others.”“You’re my kind of geek!” he exclaimed. “So you know that if we write science fiction based on science fact, it allowsus to explore the human, cultural and ethical implications of technology. It enables us to ‘prototype’ our ideas. Eventhe futures that we don’t want are good fodder for this. Think about the combination of authoritarianism throughconstant surveillance, linguistics, changing history books – all of those awful things can be encapsulated by ‘BigBrother.’ George Orwell’s 1984 gave us a symbol of a future we didn’t want to see, and it’s part of the culture now.”ComicCon BoundTo that end, Johnson is bound for the New York ComicCon this weekend, paired with sci-fi author Cory Doctorow tolaunch the next Tomorrow Project Anthology. The Anthology brings together a novella by Doctorow entitled “TheKnights of the Rainbow Table,” an interview with Will.i.am, Johnson pens two essays about the future with will.i.amand Douglas Rushkoff, and most intriguing - five science fiction stories from Pacific Northwest authors based uponthe science and technology currently under development at the University of Washington and Intel’s labs.“We encouraged them to write science-fact based stories about the future, and the community itself selected thebest stories. Five of them are included, and this is a process we hope to continue in Rio de Janeiro and later on in theUnited Kingdom,” says Johnson.The Tomorrow Project Anthology will be available for free, both in print and in e-books. Intel was kind enough togive me a review copy and I’m going through it now. It’s an engrossing book.The bottom line of all of this work, though, is Johnson’s passion for getting people to build their own futures. “WhenI talked to Doug Rushkoff, he told me, ‘Don’t forget the humans!’ We want to make sure that we bring humanity intothe development of the future, and make algorithms something that are as creative and richly human as a book or astory.”Babelfish Articles Oct 2011 Page 63
  • 64. How Facebook’s New Features Will Affect Digital Marketers 2 days ago by Patrick Salyer 16Patrick Salyer is CEO of Gigya, which makes sites social by integrating a suite of plugins like Social Login, Comments,Activity Feeds, Social Analytics and Game Mechanics. Patrick can be reached on Twitter @patricksalyer.With Facebook’s major changes set to roll out this week, little thought has been given to answering how Timelineand the revamped Open Graph will affect our interaction with rest of the web, and how websites stand to benefit. Ibelieve that weaving Facebook even deeper into websites is going to yield a positive experience for consumers andsites alike. Here’s why.________________________________________Contextual Sharing________________________________________One of the notable features of the enhanced Open Graph is contextual sharing. For users, the benefit is obvious — itenables much more than just “liking” a piece of content. Now, a user can share that he or she “read” Catching Fire orthat he or she “listened to” Nirvana. “Liking” an article, video or photo has thus far limited users, forcing them toshow tacit approval (within the context of one-click reactions) for something that they may not necessarily finddesirable.With contextual sharing, users will no longer be boxed-in by expressing one emotional reaction. For marketers, thisoffers major benefits for on-site engagement and syndication.________________________________________Auto-Sharing________________________________________One of the other share features that Facebook unveiled is “frictionless sharing,” which allows sites to share anycontent a user reads or interacts with directly to his Facebook Ticker. It’s important to point out that the user mustauthorize the site to turn on this sharing functionality much in the same way that sites have already needed to allowusers to explicitly authenticate. However, by enabling sharing and placing objects on a user’s Timeline, Facebook isundertaking an enormous and important process: documenting web activity.While some end-users may cringe at the thought of their entire digital lives being “Facebooked,” this approach tobroadcasting web activity appeals to its younger, most active user-base — a group that seems to care about “showand tell” even more than it does about privacy. Teens and young adults grew up with Facebook, and the transitionfrom one- or two-click sharing to no-click sharing won’t be as uncomfortable.________________________________________The Business Upside: Data and Traffic________________________________________Getting users to interact with Facebook’s updated features for websites is an advantage in itself, but there are other,more concrete ways the revamped Facebook features will help businesses. As the user experience becomes morepersonal and engaging, Facebook’s functionality on websites will ultimately provide those sites with an even deeperlook into whom their visitors are. This marriage of social data and on-site activity can be applied for a number of ROI-driven activities, such as hyper-specific ad targeting, content and product recommendations, and driving inventorydecisions.Just as importantly, the frictionless sharing features could be a huge boon for sites as measured by the oldest andmost valuable metric on the Internet: referral traffic. By allowing auto-sharing for nearly any activity on a site, userswill be able to push even more content to the News Feed, Ticker and Timeline, generating more exposure and clickbacks to sites.________________________________________Discovery: Now a Two-Way Street________________________________________Babelfish Articles Oct 2011 Page 64
  • 65. For years, the web was about search — that is, people using search engines to find specific things online. Now, theweb is shifting toward discovery — users are increasingly letting content find them via social networks. This trendactually started a few years ago with a number of sites seeing social networks drive more referral traffic than searchengines. With Facebook’s new features, I think we’ll see this trend turn into a basic tenet of web optimization, assites will soon be able to learn so much more about their users and offer targeted, shareable content that brings inmore referral traffic.Today, businesses spend millions of dollars optimizing for Google searches, trying to get found. But as socialbecomes a larger traffic driver, and as Facebook and other social networks continue to enable content discovery,those businesses will need to offer interactive, sharable content in order to stay relevant. Those businesses thatunderstand how Facebook is enabling bilateral relationships between sites and users will get found, gain traffic andincrease on-site engagement. Those businesses relying on search — and ignoring Facebook’s bold innovations —may soon stop getting found at all.Branded Content Brings Ashton, Demi, and Tyra to Online VideoWelcome to the new world of online branded entertainment, where major celebrities are partnering withadvertisers to create online series.By Troy Dreier"You know what really touched me? When we watched the videos coming in, and just the way that these women —it meant a lot to them. They said it changed their marriage; it changed their relationship with their mother. Itbecame this really beautiful, relevant experience for them. And therefore, it was great for the brand,” said StephanieSarofian.Sarofian is a senior vice president and managing director at Digitas, and what touched her were the results of anonline campaign that her agency created, one pushing cream cheese.The Real Women of Philadelphia has been amazingly successful for any ad campaign, let alone one that relies ononline video. Hosted by celebrity chef Paula Dean, the campaign invites viewers to create their own cream cheese-based recipes. Winners get $500 and become site hosts, offering tips in their own videos.“It’s such a simple and elegant process for letting the community take over and become the spokesperson for thebrand,” Sarofian added.The promotion, now in its third season, has broken through to become more than a recipe contest. It’s become avirtual community for women across the country.It’s also lifted the sales of Kraft Foods Co.’s Philadelphia Cream Cheese by 35%, has won an Effie award for effectivemarketing, and has gotten a lot of people to think of the product as more than just a bagel spread.The Stars Are in ChargeAt Digitas, Sarofian runs a division called The Third Act, which is devoted to brand marketing. That puts her at thefront of the new wave of branded entertainment, a wave that will have an enormous impact on what videos succeedonline.Babelfish Articles Oct 2011 Page 65
  • 66. Branded entertainment isn’t new. It dates from the earliest days of television, when soap operas got their namesfrom the soap companies that sponsored them. It’s not even new online: consider The Hire, a series of short onlinefilms made in 2001 and 2002 by BMW starring Clive Owen.But what is new is that celebrities are now taking an active role in creating branded online videos. They’redeveloping projects exclusively for the web, and they’re reaching out to find brands for partners. They’re completelyopen to working a product into a story-line and doing it in a way that goes beyond simple product placement.For actors and actresses, creating branded entertainment gives them a chance to be con- tent creators, somethingthey don’t get to be when reading other people’s lines.“Most of these celebrities are creators at heart, and they want to be in a room working with writers and brands andcontent creators and creative directors. This is their opportunity. They’re actually having a blast,” said Sarofian.Selling Out and Buying InOne of the key events for online branded entertainment is Digitas’ NewFront, which is a 1-day conference where justas much activity goes on behind meeting room doors as on the main stage. Digitas held its fourth annual NewFrontevent in New York City in June.NewFront derives its name from the television tradition of upfronts, or advertiser meetings that pitch a slate ofshows months before they air, looking for yearlong commitments. NewFront acknowledges that entertainment andadvertising now take part in a yearlong marketplace and that brands need to always be thinking about how to spendtheir budgets, not just once per year.Celebrities are jumping into online branded entertainment, Sarofian said, because they know they can’t depend onmovies or television shows that are sold yearly.“They have to be in this game, in every facet of this game, all year round,” she said.This year’s NewFront saw Ashton Kutcher, Demi Moore, Isabella Rossellini, Tyra Banks, and Zach Quinto all take thestage to pitch online shows directly to the major brands that could cut checks and make their projects a reality. Lastyear’s event included Martha Stewart and Teri Hatcher.For the brand’s part, they love working with celebrities because their Hollywood partners come with built-in fanbases. That guarantees any project a certain number of eyeballs. The celebs typically reach out to their socialnetwork fans and followers to promote the shows.The curious thing, for anyone old enough to remember, is that it wasn’t that long ago that A-list celebrities wouldn’trisk their reputations on commercials. Now, they’re so unconcerned about looking like sellouts that they’re drivingthe projects themselves. What changed? Why are they so comfortable working with advertisers?They’re comfortable because they see there will be no other way,” said Sarofian. They’re at the start of a revolutionin the entertainment industry. Television studios will need to change, because brands no longer want to committheir marketing budgets six to eight months ahead of time. The entire entertainment ecosystem needs to feed itselfdifferently, she added. The celebs developing online series are simply playing that new game, and they’re having agreat time being creative.The Mother of InventionThis current wave of branded entertainment online actually began with the 2007–2008 writers’ strike. The strikelasted for 100 days and created a financially desperate time when writers were willing to launch out into new areas.While based in New York, Sarofian traveled to Santa Monica, Calif., and Los Angeles weekly during the strike to meetwith writers who couldn’t get jobs and whose freelance rates had plummeted. She sat with them and talkedadvertising.“They wouldn’t have sat with us five years ago, but we sat at round tables and talked about all the opportunities forthem to write and create for brands,” said Sarofian.Branded entertainment production companies including Jason Bateman and Will Arnett’s DumbDumb and AshtonKutcher’s Katalyst Films date from this period, she said.Babelfish Articles Oct 2011 Page 66
  • 67. Even though audiences are more accepting now of entertainment mixed with advertising, creating brandedentertainment still requires a careful balance. Sarofian’s job is to make sure the finished product reflects well onboth the brand and the celebrity involved.“We’re all very careful to maintain the integrity of creative projects or products,” Sarofian added. The brand’sproduct isn’t included as a prop but as more of a character. It’s an essential element that carries the story forward,as with the Real Women of Philadelphia campaign.Brands and Stars in Harmony“When it really comes down to it, we don’t say, ‘Oh, look, there’s a paycheck. Let’s do that.’ That’s not what it’sabout,” said Kevin Jonas, one-third of the music group Jonas Brothers. “It’s about incorporating something youbelieve in and joining them to enhance not only their brand, but also yours.”Jonas and his famous siblings have had several experiences with branded entertainment, and he’s positive about theoutcomes. For celebrities, branded entertainment offers a chance to reach out to fans in a new light, or in a lullbetween projects.“My experience has been phenomenal, so far. As a group, as an individual, me and my brothers, we’ve worked a lotwith different companies, different brand marketing groups,” he said. “I’m just happy to be a part of it on somelevel.”Working with Kraft Lunchables, Jonas has taken part in a mentoring promotion and a program that offers field tripsto students at cash-strapped schools. He’s had a more creative role in branded projects for the site Cambio and isenthusiastic about the benefits that all his promotions offer.“There are so many amazing things happening and so many amazing things to take in. Reading about it in a book isgreat and it’s definitely part of the learning process, but if you could incorporate it into your everyday life, I think itmakes such a huge difference,” he said of the field trip promotion.Targeted ContentNow that branded entertainment is a growing part of the online video space, it’s easy to worry about the effect itwill have on content. Will the best new web series simply be long-form commercials?A big part of Sarofian’s job is to help massage the stories so that the viewers don’t see the finished videos as ads. It’sworth noting that there are excellent examples of branded series online that feel just as fresh and quirky as indieprograms. Consider Easy to Assemble, a series created by Illeana Douglas for IKEA (and filmed in a real IKEA store). Itexists in a pre-fab IKEA culture, but it never feels like an ad.“I think the quality is going to get better and better,” said Sarofian. “I think the quality is rising everyday" — not justbecause of the talent getting involved but also because of improved technology and the growing number of dollarsinvested. Some of today’s branded web series are approaching TV quality.Branded entertainment is still advertising, and one of the big advantages it offers brands is the ability to reach theright demographic. Because the audience chooses to watch these shows, brands know they’re reaching a motivatedbase. And brands have the option of only getting involved in projects that reach the right viewers.“It’s an evolved way of marketing to consumers. If you think about mass media, where you’re just pumpingmessages out and you’re reaching trillions of people, but maybe some were relevant, maybe some were not,” saidSarofian. “Now we have the tools and the analytics and the energy and the ideas and the insights to create contentin whatever form it may take that is highly relevant and will reach the right consumers right at that moment wherethey’re looking for that particular entertainment or that information.”Done right, branded entertainment benefits the brand, the stars, and the audience. Don’t be surprised if yourfavorite online shows in the near future have a corporate brand behind them.This article originally appeared in the October/November 2011 Streaming Media under the title "Here Come theCelebs: Welcome to Branded Videos."How to Build a Social BusinessBabelfish Articles Oct 2011 Page 67
  • 68. Dan Schawbel, recognized as a "personal branding guru" by The New York Times, is the Managing Partner ofMillennial Branding, LLC, and the author of the #1 international bestselling book, Me 2.0: 4 Steps to Building YourFuture (Kaplan, October 2010). Dan is the founder of the Personal Branding Blog, the publisher of Personal BrandingMagazine, the youngest columnist at BusinessWeek, and has been featured in over 350 media outlets, such as TheNew York Times and ELLE Magazine. He’s spoken at Harvard Business School, MIT, Time Warner, IBM, and CitiGroup.Dan was named to the Inc. Magazine 30 Under 30 List in 2010, and BusinessWeek cites him as someoneentrepreneurs should follow on Twitter (@DanSchawbel).The author is a Forbes contributor. The opinions expressed are those of the writer.Sandy Carter, Vice President, Social Business Evangelism, IBMI recently caught up with IBM’s Vice President of Social Business Evangelism, Sandy Carter. Her latest book is calledGet Bold: Using Social Media to Create a New Type of Social Business. In this role, she is responsible for helping toset the direction for IBM’s Social Business initiative. In 2011, Women in Technology inducted Ms. Carter into theirHall of Fame for the impact she had on the social media and Social Business marketplace. You can read her blog orfollow her on Twitter @sandy_carter. In this interview, Sandy talks about what social business is, how to build asocial strategy, measuring a successful campaign, and more.How do you define “social business”?Ten years ago there was a significant shift in the way people interacted with each other: the web came to theworkplace and became a serious business tool for organizations in industries of every kind. Today, the evolutioncontinues with the coming of age of Social Business as social computing, policies, governance and cultures areintegrated into enterprise design and organizations are focused on socially-enabling business processes.A Social Business isn’t a company that just has a Facebook page and a Twitter account. Social Business means thatevery department, from HR to marketing to product development to customer service to sales, uses social media theway it uses any other tool and channel to do its job. It’s an organization that uses social networking tools fluently tocommunicate with people inside and outside the company. It’s a strategic approach to shaping a business culture,highly dependent upon executive leadership and corporate strategy, including business process design, riskmanagement, leadership development, financial controls and use of business analytics. Becoming a Social Businesscan help an organization deepen customer relationships, generate new ideas faster, identify expertise and enable amore effective workforce.What does the acronym AGENDA stand for and why is it important?Companies around the world are now focused on becoming Social Businesses, estimated to be a $100B market by2015. But perhaps the most daunting part of becoming a social business is how to start the journey. That’s wherecreating an AGENDA plays a vital role. In order to become successful in social business, an organization needs tocreate its own personalized Social Business Agenda that addresses the company’s culture, trust betweenmanagement and employees and the organization and its constituencies, engagement behind and outside of thefirewall, risk management, and of course, measurement. So what does AGENDA stand for…• A – Aligning your goals and culture to be ready to become more engaging and transparent. Do notunderestimate the task ahead of you! Take a look at IBM’s Social Computing Guidelines as a way to get started!• G – “Gain Friends through Social Trust” focuses on finding your fans, friends and followers, and forming bestfriends from your tippers or most influential clients or outside parties. It dives into what social trust is all about andhow you instill it.• E – Engage through experiences focuses on how a company can engage its clients and employees and divesinto gaming, virtual gifting, location based, mobile, or other stellar experiences to drive that engagement.• N – Network your processes. Since this is about business, figuring out how to add social to your processes iscritical. Think about customer service — adding in Twitter to address your customer’s concerns. Or Crowdsourcingfor product innovation, or Communities for incrementing your marketing processes around loyalty.• D – Design for Reputation and Risk Management! This is the #1 areas of focus for the C-level — managing therisk of having your brand online, your employees being your brand advocates, and even your clients becoming yourBabelfish Articles Oct 2011 Page 68
  • 69. marketing department! I think the value outweighs the risk .. but see how to develop a Disaster Recovery plan as youplan for the worst, and expect the best!• A – Analyze your data! Social analytics are the new black! You need to see the patterns of sentiment, whoyour tippers are, and listen daily.How do you measure the success of social media over time? How do you know if you’re doing it right?Measuring social success depends on how social media serves other campaigns and business processes. Socialmedia’s impact from a marketing perspective has created a lot of buzz and measurement is still being fine tuned.Does having 100,000 Twitter followers help to drive sales? Still a difficult figure to measure.But, with social business there are several areas where the adoption of social impacts the business andmeasurement is much less convoluted. For example:1. Social business increases productivity• Free up sellers’ time to generate revenue• Faster on-boarding of sellers & acquisitions• Process complex deals faster2. Social business help to enhance innovation• Develop better solutions faster• Reuse assets from best practices3. Social business reduces cost• Travel, email, phone calls reduced• Reduced system complexity and maintenanceWhen hiring for your organization, do you look at how many fans/followers someone has and if they are influential?Across the company, does this matter?It certainly shouldn’t be the only thing an employee is judged on when applying for a new position, but establishing asocial reputation is absolutely an important aspect to anyone’s career in today’s business environment. And it’sgrowing in importance for organizations who are on their social business journey and are encouraging employees tobecome the voice of the organization like at IBM. It’s important to remember, if you aren’t active over socialnetworks now, it’s never too late to start!At IBM, we’re dedicated to helping every IBMer engage over social networks and establish their online reputation.This year we launched an internal, interactive, educational and of course, social, resource called Social Business @IBM on our intranet that educates IBMers about social media and various social initiatives taking place internallywhile enabling them to participate. We host modules that provide the IBMer with an introduction to the social web.They learn how to use social computing tools to foster collaboration, disseminate and consume news, developnetworks, forge closer relationships, and build credibility. As a result, they’re better informed and prepared to takeaction on behalf of IBM. We’reproviding the tools to help IBMers establish their digital reputation and two-fold, helping to enhance IBM’s brand.How to Build a Social BusinessWhat are your thoughts when it comes to employees social network use inside and outside of the office?It’s a must-have, competitive advantage! Using social media is a requirement in today’s business climate and hasbecome fundamental to getting real work done, to collaborating with colleagues, customers, partners, etc.According to IBM’s 2010 CEO Study, 57% of companies who have invested in social business tools have outperformed their peers citing collaboration as having a direct impact on their organization’s growth. In order tocompete in today’s business environment, you can’t opt out of social.Dan Schawbel, recognized as a “personal branding guru” by The New York Times, is the Managing Partner ofMillennial Branding, LLC, a full-service personal branding agency. Dan is the author of Me 2.0: 4 Steps to BuildingYour Future, the founder of the Personal Branding Blog, and publisher of Personal Branding Magazine. He hasworked with companies such as Google, Time Warner, Symantec, IBM, EMC, and CitiGroup.Babelfish Articles Oct 2011 Page 69
  • 70. How to Effectively Scale: 5 Steps From an Insiders PerspectiveMatt Jessell | October 12, 2011 | 1 commentsProlific Japanese inventor Kazuhiko Nishi believes that there are two types of creativity: the creativity of making zerointo one, and the creativity of making one into 1,000. Having helped build and grow a digital media company knownfor innovative "conversational marketing" programs, I happen to think that the latter is much more difficult.One of the biggest challenges and opportunities our growing company faced was evolving unique conversationalmarketing programs into products and services that we could offer to our clients at scale.Marketing on the Independent Web requires a much different approach - one thats much more "conversational"than other mediums. In theory, when done right, theres a harmony of voices between audience, publisher, andmarketer. In practice, since publishers are in tune with the tone and tenor of conversations happening on their sites,it makes sense that theyre involved with tailoring a campaigns message. A more "native" message will play better(and perform better). Side note: transparency with the audience is essential here.Media companies add value by acting as arbiter of the process and distributor of the message. But heres the rub:successfully implementing a campaign thats both "conversational" and "on-brand" requires a new skill set thatincludes being conversational, creative, and entrepreneurial.To put a finer point on this, media companies now work with publishers to surface the tone and tenor ofconversations occurring on their sites; partner with agencies to customize their campaign assets; and developprocesses, products and smart teams with the skills necessary to implement these campaigns at scale.Sound difficult? It is. But its attainable - and incredibly rewarding. Keeping that in mind, here are a few things thatIve learned along the way:1. Process is an evolution. Process is most successful when its flexible, formed organically, and evolved over time.Forming an initial process involves documenting everything built to date, culminating learnings, analyzing andsynthesizing them, and then creating an extensible "user-flow" for teams to follow. I imagine following this processas a road trip - the freeways are fast and efficient, youre on paved road 98 percent of the time, but teams need tobe empowered to take detours (sometimes off-road) and reroute as appropriate.2. Build SEAL teams. Assemble small, talented teams of integrated, cross-functional generalists (sales development,project management, etc.) and specialists (client services, ad trafficking, etc.); and train them extensively. It seemsobvious, but investing in your people and systems with training, tools, technologies, and access to centers ofexcellence is paramount.3. Create variable ad products. Develop a product stack that can address 80 percent of your clients needs with lightcustomization (such as visual design, content, functionality, and targeting). Give teams the ability to vary theseproducts like building-blocks - stack em together, build and iterate, and create variations on themes for theremaining 20 percent of clients that require deeper customization.4. Develop a fluid portfolio of partners. Create a portfolio of trusted partners with different domain expertise.Partners can help you add rich functionality to programs where you might not already possess the skills to meetcampaign objectives. In other words, outsource non-strategic campaign elements where your company is not yetcommitted to in-house solutions. Examples may include: design, user-experience, talent, content/editorial,videographers, developers, events, and contests.5. Feedback and prune. Post-campaign analysis, team reviews, and regular "up and out" communication withmanagement and stakeholders are essential to operating in a dynamic medium. Build these steps into yourprocesses with the goal of surfacing and sharing results and learnings, and informing future iterations of productsand services.High-touch campaigns can be not only incredibly challenging but also highly rewarding and effective. Goodcampaigns that push the industry forward could be commonplace. With many of these lessons learned (often thehard way), my hope is that by sharing some of the best practices weve developed, others will find success.Babelfish Articles Oct 2011 Page 70
  • 71. ________________________________________SES Chicago Conference & Expo, designed by practitioners for practitioners, takes place Nov. 14-18. Get 5 days ofeducation, inspiration and conversations with todays leading experts in online marketing. Register today.TV ads give best results: studyLONDON: Television advertising offers a greater return on investment than the radio, press, online display and out-of-home equivalents, a new UK study has found.Thinkbox, the trade body, worked with Ebiquity, the research firm, to assess 3,000 ad campaigns across nine industrysectors that were run between 2006 and 2011, primarily using econometric analysis.On average, TV ads were found to deliver a return on investment of £1.70 for every £1 spent, a total rising by 22% infive years, as the sales increase per exposure remained constant while media rates fell.Moreover, the typical payback provided by television came in ahead of radio on £1.48, press on £1.40, static onlinedisplays £1.06 and outdoors £0.45.According to the analysis, press ads also delivered just 37% of the sales uplift generally supplied by television, anamount that reached 19% for radio, 15% for static internet display and 9% for outdoor.Indeed, the research discovered that 71% of all sales attributable to advertising resulted from TV commercials, eventhough this channel only receives 55% of media budgets.More broadly, television can boast of a wider "halo" effect. For example, 38% of the impact enjoyed by TV spotstakes the form of boosting the sales of other products within the portfolio of the brand being advertised.Equally, when campaigns ran on television and radio, ads on the latter medium saw their effectiveness rise by up to100%, a figure standing at 35% for branded online search."TV is weathering a perfect storm of economic downturn and increased competition from emerging media," saidAndrew Challier, effectiveness practice leader at Ebiquity."Its unrivalled effect on sales and profit and its profound influence on other media make TV advertising both themost effective form of advertising and a powerful ally to other media and marketing mechanics, both on andoffline."Data sourced from Thinbox; additional content by Warc staff, 13 October 2011Chief Analytical OfficerJim Sterne | Contact Jim | Comment | Print versionBack in 2005, Bob Chatham, then at Forrester Research, spoke at an eMetrics Marketing Optimization Summit inLondon. He got everybodys attention when he predicted that people who were in "web analytics" today, would findthemselves in business intelligence tomorrow and, eventually, the C-suite.Bob talked about the data warehouse people striving to answer Big Questions with Big Data on the one hand andindulging in pattern recognition and discovery on the other.Babelfish Articles Oct 2011 Page 71
  • 72. Web analysts are a different breed, he said. Web analysts are interested in optimizing specific functions: get moretraffic, attract more valuable traffic, optimize landing pages, improve conversion, grow lifetime value, etc.When web analysts, indoctrinated in the arts of process optimization, turned their attention to the massivecorporate data warehouse, they would look for more processes to optimize. After optimizing prospect acquisition,lead management, persuasion, and conversion, web analysts would look at product development, product delivery,customer service, and more - and end up with a front row seat on what it would take to optimize the wholecompany. The eMetrics audience thought he was wonderful.In July of 2010, I wrote a blog post called "What if Analysts Ran the Show?" In it, I introduced Craig Sullivan, formerlythe manager of digital and usability at LOVEFiLM.com and now at auto glass repair giant Belron.Craig grabbed multivariate testing tools and A/B split testing methods with gusto and went to town. He was the firstto admit that he didnt have the answers, but he had really good questions and a testing methodology that couldntbe beat. He has mastered the fine art of online persuasion through the automated manipulation of text and visualelements. "I can run tests on ten thousand lab rats on my websites whenever I like. Its exhilarating."And then Craig turned his testing tools on the call center. What sort of music should be on hold? Should the voiceintoning how important your call is be male or female? Craig is on his way to integrating multiple touchpoints.That brings me to the story of Joe Megibow. Joe built avionics systems at EDS and then moved to helping Ernst &Young clients get organized. He then joined a technology company called Tealeaf, assisting its clients to monitor andmanage online customer experience. When calls came in, customer service reps can see where the caller ran intotrouble on their website.One of Joes old college friends hired him to run the Tealeaf implementation at Hotels.com. Joe dove into thepractical side of matching systems monitoring with web analytics. The company did so well that it was acquired byExpedia and things got even more interesting for Mr. Megibow.Joe went from vice president of customer experience and online marketing at Hotels.com to vice president of globalanalytics and optimization at Expedia, to vice president of mobile and e-commerce optimization. Last month, Joetold me it was time to update his keynote bio on the eMetrics Marketing Optimization Summit website because hewas just made vice president and general manager for all of Expedia in the U.S.Bob Chatham was right. The person with a clear understanding of where the data comes from and how the data canbe used to improve the business, will rise to the top. Of course, being wicked smart and contagiously enthusiastichelps, but the lesson is that our relationship with data is changing - for the good.CMOs On Social Media: Do As I Say by Aaron Baar, Oct 11, 12:00 AMTop marketers from around the world and across industries recognize the growing importance of social media intheir jobs, but they’re not necessarily following such social media themselves.According to a new IBM study of 1,700 chief marketing officers from 64 countries and across 19 industries, 82% ofCMOs said they plan to increase their use of social media over the next three to five years. However, only 26% saidthey’re currently tracking blogs, 42% are tracking third-party reviews and 48% are tracking the consumer reviews tohelp shape their marketing programs. (Comparatively, 80% rely on market research and corporate benchmarking astheir primary sources for feedback; 68% use sales campaign analysis to make strategic decisions.)“When we asked them specifically what they’re looking at. They’re very still focused on traditional market sourcesand less focused on digital sources they could be looking at to know what people are thinking,” Carolyn Heller Baird,CRM research lead for the IBM Institute for Business Value and global director of the study, tells <I>MarketingDaily</i>. “We think this is something they need to pay a lot more attention to. What that requires is a shift ofpriorities and investment. They’re kind of in the middle of that transformation now.”That transformation, which IBM likened to that of the chief financial officer role moving from mere accountant totrusted business advisor, will require that companies and their marketing departments acknowledge that therelationship with the consumer has fundamentally changed from a top-down approach to a more collaborativeBabelfish Articles Oct 2011 Page 72
  • 73. approach. Yet half of the CMOs interviewed don’t currently feel prepared to manage the market forces shaping theirindustries. That means many of them will have to make fundamental changes to the ways they market their brandsand their products.And in doing so, they’re going to have to change their marketing evaluation methods. While nearly two-thirds (63%)of CMOs, think the return on their marketing investment will be the primary measure of effectiveness by 2015,nearly half (44%) don’t currently feel prepared to provide hard numbers.“Traditionally, that’s something they haven’t had to produce,” Baird says. “What we’re suggesting is they need tomake sure they have the right tools, technologies and people with the right skill sets [so] that they are able tocommunicate back to the business in terms that the business wants to hear.”And even if they can provide those hard numbers, many CMOs don’t feel they have enough influence to makeradical change within a company. Less than half of the CMOs surveyed, for instance, felt they had sway over thepricing process and even fewer felt they had any impact on new product development or retail channel selection.“We’re suggesting they need to have more influence,” Baird says. “They are the ones collecting customer data. Theyneed to be able to use that information to provide insight into other areas … It doesn’t mean the CMO is responsiblefor *research and development+ or that he or she owns it; it’s that he or she has some influence over it.”CMOs On Social Media: Do As I Say by Aaron Baar, Oct 11, 12:00 AMTop marketers from around the world and across industries recognize the growing importance of social media intheir jobs, but they’re not necessarily following such social media themselves.According to a new IBM study of 1,700 chief marketing officers from 64 countries and across 19 industries, 82% ofCMOs said they plan to increase their use of social media over the next three to five years. However, only 26% saidthey’re currently tracking blogs, 42% are tracking third-party reviews and 48% are tracking the consumer reviews tohelp shape their marketing programs. (Comparatively, 80% rely on market research and corporate benchmarking astheir primary sources for feedback; 68% use sales campaign analysis to make strategic decisions.)“When we asked them specifically what they’re looking at. They’re very still focused on traditional market sourcesand less focused on digital sources they could be looking at to know what people are thinking,” Carolyn Heller Baird,CRM research lead for the IBM Institute for Business Value and global director of the study, tells <I>MarketingDaily</i>. “We think this is something they need to pay a lot more attention to. What that requires is a shift ofpriorities and investment. They’re kind of in the middle of that transformation now.”That transformation, which IBM likened to that of the chief financial officer role moving from mere accountant totrusted business advisor, will require that companies and their marketing departments acknowledge that therelationship with the consumer has fundamentally changed from a top-down approach to a more collaborativeapproach. Yet half of the CMOs interviewed don’t currently feel prepared to manage the market forces shaping theirindustries. That means many of them will have to make fundamental changes to the ways they market their brandsand their products.And in doing so, they’re going to have to change their marketing evaluation methods. While nearly two-thirds (63%)of CMOs, think the return on their marketing investment will be the primary measure of effectiveness by 2015,nearly half (44%) don’t currently feel prepared to provide hard numbers.“Traditionally, that’s something they haven’t had to produce,” Baird says. “What we’re suggesting is they need tomake sure they have the right tools, technologies and people with the right skill sets [so] that they are able tocommunicate back to the business in terms that the business wants to hear.”And even if they can provide those hard numbers, many CMOs don’t feel they have enough influence to makeradical change within a company. Less than half of the CMOs surveyed, for instance, felt they had sway over thepricing process and even fewer felt they had any impact on new product development or retail channel selection.“We’re suggesting they need to have more influence,” Baird says. “They are the ones collecting customer data. Theyneed to be able to use that information to provide insight into other areas … It doesn’t mean the CMO is responsiblefor *research and development+ or that he or she owns it; it’s that he or she has some influence over it.”Babelfish Articles Oct 2011 Page 73
  • 74. What Venture Capitalists Are SeeingFred Wilson, A VC | Oct. 13, 2011, 8:43 AM | 1,446 |The Wall Street Journal has a story out today that says "Web Startups Hit Cash Crunch." There has been a fair bit ofreaction in the tech blogs and I thought Id toss into the discussion some things we are seeing:1) There are so many startups out there raising money. I dont think this is a bad thing. Its a good thing.Entrepreneurship is in vogue. Innovators are innovating. Makers are making. But I cannot remember a time when wehave gotten more inbound traffic. It is not just coming from entrepreneurs. It is coming from angels, seed investors,VCs, lawyers, accountants, friends, aunts, uncles, you name it. Im waiting for the guy who sits at the front desk inour building to pass me a business plan on my way into the office.2) There are a lot of "me too" investments out there. And the delineation between startups is getting narrower.Almost every investment that comes our way these days causes us to ask ourselves "is this too close to xyz?" withxyz being one of our exisiting portfolio companies. The startup market is hypercompetitive. The user base is finite atsome level. The capital markets are finite at some level. And the number of startups chasing these markets seems tohave doubled or tripled in the past couple years.3) VCs are having a tough time raising money. The conventional wisdom is that 10-20% of venture funds produce100% of the returns in the asset class. LPs (thats what we call our investors) are all chasing that top 10-20% and thatleaves 80-90% of the VC firms struggling to raise money. The one bright sign in LP land is that emerging managers(what USV was a few years ago) are getting more attention from LPs. Id rather be a new firm raising a first fund thana mediocre firm raising fund five right now.4) Angels may be topping out, at least temporarily. This is more of a guess than the previous three. What happens toevery angel is that they start making investments. They get excited. They make a bunch of them. And then twothings happen. First, a few of their investments struggle and fail. And second, a few of their investments cant raisemoney and come back to them for a second round. They begin to realize that startup investment isnt so easy andthat they have a finite amount of money they can invest or that they are willing to invest. They pull back a bit, seehow things are going to play out, and become a bit more cautious. Given the massive amount of angel capital thathas come into the market in the past few years, I wonder if we are seeing some cooling of that market as all the newinvestors take stock of where they are and where they want to go next.5) The internet investing market is transitioning. Social was the driving force for the past three or four years. In thewake of Facebook and Twitter, how could it not be? Mobile has also been a hot theme. Both sectors haveconsolidated a few winners and a number of additional interesting emerging companies. But how many socialplatforms of scale will there be? Five, ten, twenty? And mobile is hard because distribution continues to be limitedto the app store model where you get on the leaderboard and win or you dont and you dont. Investors are movinginto new areas like cloud, peer-to-peer marketplaces, and trying to take what worked in consumer into theenterprise. There is no lack of interest in internet investing, but investors are having to learn new markets and newsectors. And that kind of transition takes the heat out of an overheated market.So, is there a "cash crunch" for web startups? Not that we are seeing. Our portfolio companies have all been able tofinance themselves when they have wanted to. And we have made more investments this year than any year wevebeen in business (maybe 10-20% more, not 2x more). But I do believe we are in for a bit of a reality check. Weve hadquite a run here and all big runs are followed by pullbacks. The public markets for stocks and bonds has beenrelatively weak all year and that has to have some impact. It is likely that we will see more startups having troublegoin from the seed round to the A round, or from the A round to the B round.Thats a good reason to take money from a firm that stands behind its portfolio companies. At USV, we have neverfailed to do at least one follow-on round with the sole exception of Delicious, which sold to Yahoo! instead. We dontpromise the next round. We dont commit to it. But we are supportive to a fault. And we are proud of it. Being anBabelfish Articles Oct 2011 Page 74
  • 75. entrepreneur is hard. Having supportive and caring investors helps. In the market we are in (or heading into) it willhelp more.Showing 133 comments•andyswaninstigatorI turned off the angel spigot about one year ago, despite astounding "luck" in my first 8 investments.Two reasons:1) Valuations are too high for me to take a role big enough where my expertise helps impact success.Im the kind of angel that wants to come in for a SIGNIFICANT minority stake at seed and sells into the B-round.That doesnt work at big valuation numbers early. Note I am NOT saying that big valuation numbers early arentwarranted or wont be successful....it just kills MY strategy.2) Ive got my own shit to build and fund.A lot of haters are going to be very disappointed to find out that most of these great teams being funded are fundedfor the right reason: Because they can navigate storms and YES, they can "turn on" revenue rather quickly.kenbergerregular Tech Tipping Point Practitioner and Mentor Capitalist, Agile development providerto be clear: your strategy is to exit by the B round? If true, does that tag you in some peoples minds as a flipper?I ran a similar idea past a couple prominent VC friends of mine, and they basically said that if Im known for doingthat, they wouldnt see dealflow from them.oandyswaninstigatorIf there is a B round thats usually where I want out. I dont rely on that, so I try to join teams that have realisticrevenue and profitability goals prior to a B. You never know no matter what so "exit strategies" are to be taken witha large grain of salt.Im extremely clear up-front with the companies that I invest with.... from "go" to "B" I can be a HUGE help wellbeyond my monetary contribution. I am not an idle guy and Im poor enough to know that I need my sweat to drivemy returns.After a company has success to a B, Im justifiably more backseat where I dont want to be and where they do notbenefit from me anymore.I dont rely on anyone for deal-flow, but all of the VCs and other angels that Ive been in deals with have shown a lotof respect for the way I invest. Because Im there before them anyway and they kind of consider me a part of thefounding team, more-so than an "angel" or "venture" guy.Thats how I want it because thats the way I approach it too.kenbergerregular Tech Tipping Point Practitioner and Mentor Capitalist, Agile development providervery well said. true of me too, so thanks for helping hone the pitch :)Babelfish Articles Oct 2011 Page 75
  • 76. Markregular http://hubski.pen.io/Thanks. Its cool to get this perspective. I have to think that this belt-tightening might be a plus from a consumerside. We might get more quality over speed and priority. I look at something like Color, and have to wonder, why arethey doing what they are doing? Making money isnt interesting.I like the creativity of whats been going on, and love to follow the news more than most, but I think a voice has beenmissing: On the other end of all of this are people that dont care too much about the space, or funding, or whatever.These people are just looking to find better ways of doing what they like to do, or to have new experiences. I look atmy phone apps, and I dont use most of them. Most of what I do use is part of the OS, or is getting baked into it.People dont fundamentally change. Im expecting that in the new few years the winners will be those that focusmore on accomplishing something of value for people, and less on being a product in a space.Kind of rambling. :)LE"Im expecting that in the new few years the winners will be those that focus more on accomplishing something ofvalue for people"If you asked friends and family to invest the first thing they wouldlook at is the idea you have and whether they felt that youhad the experience and knowledge to execute the idea.If the idea didnt make sense they wouldnt give you moneyno matter how much they believed in you (or your team).But what we are seeing with the VC, angel and incubator is investingin teams rather than people. And thats of course exactly whatthey say they do (at least the ones that are quoted publicly).Where is the motivation for teams to actually come up with"accomplishing something of value for people" when they are raising money?As long as they get in the line with something thatwill fly they can figure it out later. I mean if PaulGraham likes you youre golden, right?Its very clear to me that the investing community istotally enamored with a certain age group that talk a goodgame and in some cases (but of course not all) have a certaineducational pedigree. As if that actually TRUMPS thefact that they lack a significant degree of realworld experience and will be able to figureit all out.(Speaking of Trump by the way back in the 70s whenhe pulled off his first real estate deals he hadBabelfish Articles Oct 2011 Page 76
  • 77. intimate knowledge of the real estate industry anda father who actually was a successful developer whohe had spent a significant amount of time with learningthe ropes in addition to his finance education from Wharton.)Bradregular Retailpitch.com - Bringing brands and retailers togetherwow, that is insightful. I like the comment of teams. I do find it interesting that you hear a VC say, " we will alwaysinvest in.... no matter what." Even if the product is ridiculous. A good example of this was that color app, have notheard a thing about it since it got its money. Frankly it goes against common sense, $40M in a company that givesits product away for free. Makes sense...but the team rocks.Carl J. Mistlebauerregular Fascinated with operations, people, and innovation! A seeker who rolls up his sleeves toget things done. Currently seeking funding for a company that I think is an obvious home run but I cannot seem toconvince anyone else!I have been out seeking funding for a "hybrid" and I have to acknowledge that I did not have a clue what to do (if Iever write a book this will be one outrageously funny chapter to say the least!). My experience has always been youfund your own growth and if you cant then you go to a bank.Then, I am not a salesman. When someone my size gets excited during a presentation it usually intimidatespeople...Just imagine Fake Grimlock on drugs...I have met quite a few very helpful and interested people, but I have run into the "...gee, we just invested in XXXcompany and sure wish you had come by sooner...."Or, "...your proposal is very interesting but the scale is too small for us...."Yes, even revolutions have lifecycles. So now we find ourselves moving downstream; no longer is it the "big idea" orthe "change the world" idea that gets funding but rather the smaller ideas that build upon existing ideas, thecompanies that take the idea and turn it into something different.From worldview to nicheview. From $20mil to $5mil. From seed, series A, series B, to seed and profitability."Innovate or die" applies to all of us......Elia FreedmanregularCarl, if you are not changing the world is the business worth doing? If you are compromising on your vision does thatmake the business worth accomplishing? Do you really want to work with people who dont get it and dont buy in?Carl J. Mistlebauerregular Fascinated with operations, people, and innovation! A seeker who rolls up his sleeves toget things done. Currently seeking funding for a company that I think is an obvious home run but I cannot seem toconvince anyone else!Elia,I wish I could compromise and or "get along" but I cant. But when you are competing for funding, as a hybrid (parttech/social and part old economy) in a niche market (big and tall/plus sizes) you have to realize that if the world isBabelfish Articles Oct 2011 Page 77
  • 78. looking for the next big revolution, like Twitter, which has been instrumental in toppling governments in foreigncountries, well, perspective is needed.Fred is an investor, he invests in what he understands, now if he was 6 5" and weighed 350 lbs he would"understand" my company and market; and he would be my biggest champion.All revolutions begin with the toppling of the old regime, then it just takes a while to figure out what to do after that.That is true of countries and technology. Edison invented the lightbulb, but how long did it take to get someone tofigure out to put a lightbulb in a refrigerator? Or we all talk about the television and how it changed our lives butdoes anyone realize what a change agent the "tv table" was? I mean it revolutionized our eating habits!I represent the "tv table" in the big scheme of things......so you dont give up but rather just bide your time until itsyour day....Elia FreedmanregularNice response and great perspective. Thanks for taking the time. (By the way, my wife complains about this all thetime. She is tall and lean - 511 - and can never find pants to fit her.)Carl J. Mistlebauerregular Fascinated with operations, people, and innovation! A seeker who rolls up his sleeves toget things done. Currently seeking funding for a company that I think is an obvious home run but I cannot seem toconvince anyone else!I hope your wife has found the company, http://www.tallwomensclothes.c..., that is where I buy all my gifts for mysister who is an inch taller than your wife.Eventually even the big and tall/plus size market will realize that there is a difference between "tall" and "big. Ialways tell folks that when a department store has a "big and tall" department that it is false advertising becausewhat they really have is a short and fat department!The reality is regular sizes created extended sizing and eventually big and tall/plus size will create tall and thin sizing.I already have the specs for a tall and thin tee shirt (Medium Tall to XXL Tall) but that gets unveiled in two years,once you create the mass.Philip SugarregularThere are lots of businesses that dont change the world that are very much worth doing. Probably 99.9% of them.Its what our economy is based on and how great fortunes are made.Just not ones written about in TechCrunchandyswaninstigatorExactly right. I know several wealthy, happy men that started dry-cleaners, online brokerages and liquor stores.Just do it better than them. It doesnt have to be rocket surgery.Elia FreedmanregularGood point. I would argue that most of the ones written on TechCrunch are in the 99.9% majority.Babelfish Articles Oct 2011 Page 78
  • 79. My question was for Carl, though, specifically. If he has a CTW vision, is he okay with sacrificing that vision in order toraise a round of funding. This issue is one Ive been thinking about a lot.Charlie Crystleinstigator founder, hacker, mover, shakerthanks, though for that ramblingDonna Brewington Whiteregular Love adventure, entrepreneurs, innovation, disruption...making thingshappen...helping companies to build teams. Love my husband...kids...and long walks on the beach without them.I wonder what the number of "me too" investments says about the level of true innovation going on. Still thinkingabout Carlota Perez and her call for "bold innovation!" Are we seeing "bold innovation" in this startup market?leighregular mom.writer.worker.People misunderstood the blake ross quote:"The next big thing is whatever makes the last big thing usable" to"The next big thing is whatever Fred recently funded so just go copy it"ChuksOnwunemewelcome back stranger"Me too" also happens in startup-ville. When/if youre copying something, the yardstick for measurement is if youreproviding an easier stab at solving the pain.PeterI think there is a fundamental difference between bold innovation in the digital world vs the analog world. Butperhaps also similarities.Analog Wolrd-Bold Innovation-One difference is that most important problems facing humanity can only be fully addressed with bold innovation inthe ANALOG WORLD. Think biologic threats, environmental threats, energy needs, astronogical threats, etc.But bold analog innovation does not come easily,, perhaps because humans have been innovating in an analogfashion for 2000 years and all the easy solutions for us have been found ,.An example of an analog innovation stall is home owner photovoltaic roof cells. The have been availilbe to us sincethe 70s, but todays technology is not much better technically or financially.So today, 40 years later,-but still no realinnovative advancement.Digital Wolrd-Bold Innovation-The digital world has been created by bold innovative vision and genious. But it seems that nothing important hashappened over the last 10-20 years. (other than necessary financing to create a seamless network).Bold innovation include- inventing the harware necessary forthe digital world; creating machine languages tocommunicate with that hardware; programming languages; lasers, digital photography systems, inkjet printers, in-expensive storage, digital music. etc.But, in the last 10 years what bold innovation? Check- in restaruant software? Facebook-just another community ina succession that started with Prodigy,AOL, tripod, etc. .Zynga games? Nothing new. Certainly the breakdown of theBabelfish Articles Oct 2011 Page 79
  • 80. phone monopolies and access to their hardware led to things today like phone app market. But this was driven bylaw , not innovation.Alot of todays seed money is going into the digital world whereit may be easier to start something perhaps becausethis digital world has been innovating for only 50 years-there has to be new BIG innovation type things going onAnyone know what some are? Or maybe the digital world is hitting a rapid growth "wall" like photovoltaics and ideasof enery from the sun?Elia FreedmanregularI used to think the same thing but came to the conclusion that it is meaningless. Investing and starting businesses is arisky adventure and copying someone elses idea is perceived as less risky. Copying has been a way of life sincecommerce began. Someone figured out that if the killed raccoons and made them into hats and jackets then peoplewould buy them. Others copied that idea. The same is true today just on a different scale.ShanaCinstigator Carries a can of Anti-Spamdepends - are there multiple version of some technology trying to solve some sort of problem ( like messagingbetween phones). Are people trying to flip the company into one bigger company one stage ahead (combineindustry forces?)...Kevin Marshallregular a guy doing tech stuff...mostly related to my startup http://knowabout.it these days.Theres a bit of a catch-22 going on right now...with the advancements in communication and technology (andaccess to so much data through various API), its now easier than ever to build stuff...so more people are buildinglight weight things than ever before...And since many of us are starting with the same basic elements (open data, social graphs, lightweight dev. tools),many are ending in very sim. places...or at least taking very sim. paths to places very nearby each other...The problem is that everyone building one of these things also thinks that its worthy of being funded and that itcould be or should be a *real* business (I suffer from this myself often as its easy to get excited about a pet projector hack that people seem to like/use -- but the reality is that, just because people like it and use it, doesnt mean itsa real business with large [or any] revenue potential).chrishuntisregular born of the interneti think a good way to innovate is to figure out what the internet is going to look like and then innovate on top of that.two of the most interesting areas ive come across so far are the Internet of Things, and Time.- the internet of things will add new objects to the internet.- and communication technologies manipulate space, and i think it will start working with time. and then what willthat look like.chrishuntisregular born of the internetconsensus is the opposite of opportunityBabelfish Articles Oct 2011 Page 80
  • 81. RichardFregular Dowch laen Cymru #RWCif theyve got any sense theyll steal the # tag as wellPeterHi Fred,Is there any truth to the rumor that money flows are moving out of IT/internet and into biotech?William Mougayarinstigator Founder & CEO, Eqentia. Entrepreneur. 30 years in IT/High-Tech. Ex-author &consultant. Eqentia is the most versatile news aggregation, curation and re-publishing platform. Previously, sales &marketing exec, best-selling author, speaker, consultant, writer and thought leader. Im on a fast-track to build-upEqentia. Looking for great talent to hire.Thank God this is happening. Im seeing parallels to the year 2000 when the me-toos or bad ideas were beingfunded in abundance and some even going IPO on a wing and a prayer. The difference between 2000 and now, is a)there arent a lot of IPOs, b) only 50% of the Angels/VCs/Startups are drunk, whereas it was 90% in 2000.The transitions from seed-to-A or A-to-B are so critical because you go from a promise/story to actual results. Youcan sell the story so many times.I like this new environment. Its not going to make all VCs smarter, but it will surely clear the fog for those (like USV)that have been more level headed than others.John Petersenfrequent visitor ceo || candlementors.comYou see very similar cycles in the equity markets. After a period of nice returns, main street feels they need to jumpon board and participate. The problem is that often times, the train has already left the station.I think many of the weak to mediocre VCs and angels are in this chase mode because they missed out on FB, Twitter,etc. This is where you see some deals get funded at valuations that make absolutely no sense.This also scares me as well -- http://j.mp/r3Amso -- just another way of chasing and providing opportunity for peopleto invest in startups that have no business investing in startups.Dan LewisregularHow many of the new(er) entrepreneurs are pitching VC-class fundable ideas/products? My project isnt one -- itllnever do enough revenue to warrant a multi-million dollar exit -- but it definitely can end up supporting one or two(or four or five?) people long-term. Are you seeing a lot of those?Kevin Marshallregular a guy doing tech stuff...mostly related to my startup http://knowabout.it these days.Agree...this is the new challenge for many of us. How to get the project to survive long enough and grow big enoughto make it to that support two-three people...I suspect many many many of the things out there right now lookingfor funding could get to this level if they can just afford to put in the initial time, effort, and somehow cover theinitial growth costs to get there (I think this is the reason so many people are pitching angels right now)ShanaCinstigator Carries a can of Anti-SpamBabelfish Articles Oct 2011 Page 81
  • 82. Is it that the web is getting smaller?And why arent banks funding these sorts of projects yet (small business funding is supposed to be part of what theydo)?fredwilsonbartender I am a VCYestacandersonwelcome back stranger Digital anthropologist. Business model junkie. Head of Digital Strategies EMEA@WaggenerEdstrom.I think journalists just like writing "its going to be a long, cold winter for X" stories.A friend once told me the only reason start-ups have a hard time raising money in Q4-Q1 has more to do with VCsski trips than lack of funds.Dana Blankenhornwelcome back strangerJournalism follows fads just like investing does.Right now the fad is pessimism. Thats why Im an optimist.Back in 1999 the fad was optimism. Thats when I was a pessimist.Watching the herd from a hilltop may not lead to wealth, but its supposed to be the journalistic ideal. Its mineanyway.LIADregular Thirsty for Knowledge. Founder of Shoply....and that my friends is why USV kicks ass.fredwilsonbartender I am a VCAnd now a word from your sponsor ;)Mark Esselinstigator pro sim-gineer, alg geek, dudeI was thinking the same while reading.One of the many reasonsBradregular Retailpitch.com - Bringing brands and retailers togetherYour post today hit a chord with me. I have been very wary of the valuations and the expectations on so manyproducts that have very little stock holder value. Let me clarify this, it may have a networking value but not astockholder value.I do not understand the investments put in to products or systems that do not produce free cash flow that producesvalues to the investors. Dont get me wrong, I enjoy facebook and I look at twitter once in a while, but the valuationseems outlandish to me as we do not know if this is a fad or a long term trend.Babelfish Articles Oct 2011 Page 82
  • 83. Free is great, but like a wise man once said, "a customer is not a customer until they pay for something".Pascal-Emmanuel Gobryregular I blog about tech, entrepreneurship, finance, innovative ideas, business in thedeveloping world... Among other things I used to run a think tank and attend Frances top law school. Now Im in bschool and do biz dev for a startup called Netvibes.Will be interesting to see how/if this plays out. Right now all we have is one WSJ story.The great thing about entrepreneurship, though, is that its always a good time to start. When its boomtime, moneyrains; when its crunchtime, things are cheaper and your competitors are screwed.Rohan Rajivregular Blogger and Learning Enthusiast - Never Older, Only BetterYeah. Starting alone doesnt say much though. Crunch time is crunch time - its bloody difficult.mike gilfillanregular Started ComputerJobs.com in 95. Raised $25m in 98 & 00. Sold it in 2006Yes, damn difficult. But it forces you to focus on what matters and build a solid business model.Too much easy money often means too many frivolous expenditures (& hires) and can lead to becoming a moneyjunkie (ie: Groupon).Rohan Rajivregular Blogger and Learning Enthusiast - Never Older, Only Bettertrue that!David Millerfrequent visitor Founder, Conjecta. Co-Founder, AvidXchange.From my perspective, there are so many startups forming for two reasons. First, the opportunities seem bigger thanever. Maybe theyre not in Social anymore and theyre tougher in Mobile. That just means that there is an evenbigger opportunity to figure out and become a leader in what comes next.Second, it takes much less capital than it used to to get going. What used to take a few million dollars now takes afew hundred thousand, so you can raise less to make the same amount of progress. The same amount of availablecapital gives 10 ideas a chance instead of just one.I dont see either of these things changing anytime soon. If anything, opportunities are getting bigger and costs aregoing down. There may be a shake-out for the companies missing their milestones: thats always been true. Itsgoing to continue to be true. Theres just more companies now that are going to miss them.The successful companies shouldnt have any trouble raising money.Dorian Benkoilregular digital media, marketing, publishing, audience,engagement teemingmedia.comFred: What do you think the new markets and sectors are?Aaron Kleinregular Co-Founder and CEO of Riskalyze. Husband and dad to my three favorite people.Babelfish Articles Oct 2011 Page 83
  • 84. Ive told my team that our plan has to be insanely great product + good traction. We cant expect an environmentwhere people are throwing money at us for being smart or having great technology.Maybe that environment will still be there when its time for us to go out to the financing markets, but Id rather beready for the alternative.Worst case scenario, that gives us a better valuation.andyswaninstigatorIve seen the product. You guys are well on your way.Remember, it ALWAYS takes longer than you think. Significantly.ErikSchwartzregular Dad, sailor, geek. Founder at Synchronize.TVAlways. Much longer.Aaron Kleinregular Co-Founder and CEO of Riskalyze. Husband and dad to my three favorite people.Thanks Andy. And how true that is.Catarino™welcome back strangerDimidium facti qui coepit habetCarry on.ShanaCinstigator Carries a can of Anti-Spamfor those who dont read latin:“Once youve started, youre halfway there.”(Horace, Epistles, Book I, Ep. 2Tom LabusregularAt Brad Felds book signing last week someone asked him about cash crunch for start ups.He gave a long and great riff on this but key points were:* Mainstream VC guys who never did "seed round rounds" now have seed funds.* Companies having problems when that round is finishing and theyre not Twitter.* High valuations also contribute problems.His book is great. Like a text for all aspects of funding.Ben Popperwelcome back strangerThe WSJ seems to be trying a little too hard to make their case. At one point the story declares, “Between Jan. 1,2009, and late last month, U.S. venture-capital firms raised $39.2 billion, down 76% from the $162.5 billion that wasraised between Jan. 1, 1998, and Dec. 21, 2000, according to VentureSource.”Babelfish Articles Oct 2011 Page 84
  • 85. The fact that venture funding is at much saner levels now than it was during the dot-com boom is a good thing.Nobody in the industry wants to see a repeat of the crash that followed those heady times. Saying we’re in a cashcrunch now because the number don’t stack up to the late 90s is like bemoaning the lack of Bernie Madoffs amongtoday’s money managers.New data from CB Insights shows a trend quite different from the tack taken by the WSJ. The number of techventure deals and the dollars amounts invested has grown since they began recording in 2009.http://www.betabeat.com/2011/1...What we are seeing now is the natural by-product of the mobile-local-social seed stage boom of the last two years. Alot of young companies are having flat to down rounds and many are going out of business.But a correction on the early stage is a healthy thing, and the number of deals, amount of cash invested and flood ofyoung entrepreneurs looking to build a business are not slowing down, especially in NYC. And thats a good thingRawson DanielFred, you say that users and capital are finite and you will ask if new potential investments compete with currentinvestments for these resources. Do you ever view revenue sources this way? I.E. If you. All of a sudden have 4portfolio companies selling similar ad space, does that worry you? Or at this point are you more focused on macrothemes like ad dollars coming to the internet from other avenues?ObnoxiousGeekwelcome back stranger Im smarter than you. Fact.The tide will go out on the VCs sooner than later. Well get to see who was swimming naked - my guess is most ofthe VCs. Why do I say this?I see too much money chasing dumb ideas, with no conceivable business model. This includes even the so-called"Top tier" VCs.JasonpwrightWhenever I need a startup/ investor reality check I watch this Jason Calacanis interview with David HeinemeierHansson.http://www.youtube.com/watch?v...Charlie Crystleinstigator founder, hacker, mover, shakerskip to 27:00 to hear the gospel:"selling stuff to people who want to pay for it"love that modelJasonpwrightSkip to 15:00 to get going.Babelfish Articles Oct 2011 Page 85
  • 86. fredwilsonbartender I am a VCAnd that could include USVim somewhat conforted by the fact that 2/3 of our portfolio has meaningful revenue and 1/3 is profitableFor our 2004 fund you can multiply those numbers by almost 1.5ObnoxiousGeekwelcome back stranger Im smarter than you. Fact.Those %s are quite impressive. Congrats.fredwilsonbartender I am a VCBut your critique still rings trueHappiness is positive cash flowObnoxiousGeekwelcome back stranger Im smarter than you. Fact.Regarding Angels, Im sure a substantial majority of them will fail big-time. The market wont support a million, "metoo", time wasting consumer apps/games.JimHirshfieldregular Biz Dev @ Tynt, x-Zemanta, x-Wired, x-WhoWhere, x-Lycos, x-Reuters, Silicon Valley DNA inNYC, VeganInteresting. Bubblicious, perhaps. Carlota Perez would have us believe the bubbles have popped, no? How manytimes will this happen with the tech revolution were in before we see the healthy expansion? Or is this the healthyexpansion?RichardFregular Dowch laen Cymru #RWCIf you are right about 4, and it will be interesting to see if someone like Dave McClure chips in here, then this willdefinitely take some heat out of the market. Good in some ways but angels are so important to the start upecosystem that I hope they are not pulling back too much (but the way cycles go they probably are/will)Mark Esselinstigator pro sim-gineer, alg geek, dudeAngels provide the admirable role that I first mistakenly thought VCs did, taking on massive risk to aid foundersperform product/market research or to fuel "one crazy sun of a bitchs" idea. After that concept is "proven", VC isthe afterburner.I hope the Angel market swells globally, and provides great returns. Even if only 10% of Angels make money (makingup #s), and their market grows, it can be great news for early entrepreneurs.fredwilsonbartender I am a VCIm not suggest a collapse in angel funding just a pullbackbobby dangangels underutilized portfolio theory. In order to manage risk, investments should be in non-correlatedsectors/plays. The empirical fact of continued investment in me too web 2.0 companies, highlights how investorsBabelfish Articles Oct 2011 Page 86
  • 87. continued to pour into correlated plays, due to the finite market in the web 2.0 space, and overabundance of capitalfrom 07-10.The problem now is that of correlation. If a web 2.0 business model, or market is shown to be a failure (groupon-daily deals market), valuations in the other me2 correlated companies will collapse. And angel funds will implode.Also a hrd linading in China will be devastating to world markets, and capital pools.AShanaCinstigator Carries a can of Anti-Spamso more organized and acting a bit more true angelic ( angels only scale so much in the miracle business, accordingto stories)Philip SugarregularI have been saying there will be an angel pull-back like there has been in cycles for the 20 years. Its why you see sofew angels that have been doing it for 20 years.You probably can name those guys on two hands. Unfortunately I think it is going to be much worse than the lastcouple because the cycle up was much greater.I have seen it at least three times since 1990. Every angel says they expect to lose money. The problem is nobody isgood at losing money. You can strive to be not bad at it. For VCs its generally other peoples money. For angels itsyour very own money.Ive seen it firsthand many times, how irrational people can be when they realize theyve lost their money. Theworst actually is the angel funded company that everybody has been hoping was going to be the ninth inning twoout homerun that is going to save their portfolio, and let them tell their spouse and friends that they at least brokeeven.The gnashing of teeth when that last hold-out, the one that has lasted the longest, needs funding and it comes downto getting funding to stay alive, but the angels are getting crammed down, is unbelievable.ShanaCinstigator Carries a can of Anti-Spamwhat is the best way to handle the loss?Philip SugarregularGracefully, but its very, very hard.You can even see from Freds tone how much he hates loses and takes it personally. (and Im saying he must be inthe top quintile for taking them well)Im just saying when you see these angels taking a loss its really not pretty.Douglas Cretsregular Community Manager at Re-Wired Group Social Researcher, Communicator, Hard WorkerThe future is Ushi.Babelfish Articles Oct 2011 Page 87
  • 88. Mrinal Desaiwelcome back strangerI have a question, Fred, regarding "investors are having to learn new markets and new sectors"So is innovation happening (and being sustained - with capital) in new sectors due to the hypercompetitiveness inanother or due to real demand in this new sector/market? Or both?Kaffenated If you understand, things are just as they are. If you do not understand, things are just as they are.Beauty truly is in the eye of the beholder. I suspect this bubble is ready to pop.Dana Blankenhornwelcome back strangerThe game of VC and angel funding is always moving. Solar panels were hot for a while, but they fell back, and nowthere are a bunch of other alternative energy plays out there. Same with this. Social was in, now theyre looking forthe next thing.To interest a VC you have to make a reasonable case for a 10X return on investment within a fairly narrow timeframe. So its always going to be something of a fashion game.HeartRate Games Games for cardio fitness machinesGrant writing is an under-appreciated entrepreneurial skill. SBIRs are hard to come by, but free money is awesome,and its nice to have the U.S. government as our first paying customer.kidmercuryinstigator dedicated to re-building the worlds money supply.the only macroeconomic story is the global sovereign debt crisis; that will dictate the availability of capital forstartups or anything else. the availability of capital will decline in real terms, but for entrepreneurs who know how toreduce cost by an even greater margin than the reduction in availability of real (not nominal) capital, this should notbe a problem.with 2013 just over a year away we are on the cusp of the golden age -- many of you can surely sense it intuitively,even those with a passionate dislike of all things kook. the largest obstacle remains political will, and as the streetactions around the world suggest, that is building up as well. though we still have a long, long, LONG way to go inthat battle.9/11 was an inside job,kid mercuryJoe McMackinIs it safe to say there are more startups than ever currently launching and most dont have revenue? And for theones launching with revenue they are having no problem getting funding?Dave MorganregularYou are right about # 4) Fred, at least from my perspective. As a first time angel, Ive done maybe 15 smallinvestments over past three years and am very hopeful about them, but recently decided to step back and see howthey play out for a while and focus on my follow-ons. Its definitely a game best played by pros. Ive talked to severalother angels doing exactly the same thing right now.Babelfish Articles Oct 2011 Page 88
  • 89. NedNNice of you to clarify, but I guess being in the know (or being 52, Ive been through a few of these cycles on thehappy and down side of it) I had already reached these conclusions. When it comes to mobile advertising, DigiDayhad a piece yesterday how Premium content creators are avoiding putting their content with the networks to keepCPM prices from degrading.Going back to your point, the wad of seed cap towards mobile networks is driving down CPM pricing because theyneed to have an "all money is green" philosphy to keep their investors happy. They dont have to care what cpmthey sell anything for.As a premium publisher, Im goin solo too. Content is king, and will always be. We lost the web for a while, and thistime, were going about it the right way.Aviah Laorregularsounds like a new investment theme is cookingShanaCinstigator Carries a can of Anti-SpamIs VC in the tech world changing structurally because of LP behavior and angels acting this way?Marcosardiwelcome back strangerGreat post. This contraction is a good thing, as it doesnt seem to affect the good VCs. The doesnt need more VCs, itneeds good VCs. Entrepreneurs are not well served by VCs investing in something that has very little chances to besuccessful.Chris Hwang I play a small role in a big story."It is likely that we will see more startups having trouble going from the seed round to the A round, or from the Around to the B round."So how will startups get out of trouble from the two scenarios above? What are unique ways to think outside thebox from the startups perspective (e.g., go dual track with strategics and VCs, befriend a celebrity / free PR, focus abit more on cash flow)? Or maybe thats just silly, which is typically the case for me. =)Carl Rahn GriffithregularIts time to get more virtual money - money that solely primarily serves to make money via esoteric virtual financialproducts - into the real world and for us to prove one can deliver a healthy return in the physical world - and havefun whilst also doing good - and making a profit. None of us (should) expect altruism but we should expect money toat some point manifest itself from time to time and stop leading a transient and nomadic life in algorithms.Too many of those in finance are utterly detached from the physical world.Metaphysical poetry is one thing. Metaphysical money is another.Time to get real.Tom LabusregularBabelfish Articles Oct 2011 Page 89
  • 90. From Bloomberg:Rovio- Angry Birds considering an IPO 1B valuation.Please.Miljenko HatlakFirst of all, reality is that any entrepreneurial activity is worth a prize, but when to much activity is concentratedaround similar idea, almost all will fail to achieve some worthy result.I remember when many year ago local guy decided to grow blackberries and sell them on the Saturday market. Atthe beginning all was looking like an instant success, but year later he and all "copycats" got broken.Lately, in start-up ecosystem man could see a lots of similarities. How many photo-sharing apps and platformemerged in last year or two.Regarding Freds post,here are last few post from TechCrunch - some people love them, other dont. These are allposts by same blogger? (R. Wauters) but significance is obvious:TwinStrata Raises.....Cloud Storage, Backup SolutionsCitrix Acquires .....Dropbox For EnterprisesBacked...... To Organize Your Receipts In The CloudBen Sesserwelcome back strangerMy top overheated market signs are corporate VC funds and mainstream news coverage for not at scale startups.Michael Tarullo^2 for honesty. Its nice when its broken down into pieces and shades of gray rather than "bubble or not?"#5 might be a core driver that underlies your points 1, 2, and 4 above. Social, mobile, and analytics companies arereally easy to build MVPs for, attract some early users from the tech community, and get a lot of buzz. By nature,they end up being too close to xyz because theyre not really breaking new ground or attracting new groups of users.Enterprise tech, two sided marketplaces, companies attacking big incumbent industries, etc. are typically lessaffordable for angels, less attractive for 20something entrepreneurs, and look a whole lot less sparkly at first. Youcant always just take $20k from a seed fund if your target is automotive manufacturers or healthcare providers.Theyve also got longer cycles to maturation in most cases.kirkloveregular Exfm Community ManagerGreat idea + smart team + kick ass execution will always attract money, no matter the market. If youre a start upand youre struggling to get cash, youre not doing the aforementioned.PS: I love how simple you write (thats a compliment). Straight forward and honest.James Ferguson @kWIQlyfrequent visitor Passionate about energy In buildingsFred>>. Im waiting for the guy who sits at the front desk in our building to pass me a business plan on my way intothe office.Babelfish Articles Oct 2011 Page 90
  • 91. Anyone know the guys name - Fred - captive audience :)Are there no lengths ? Whats worse than cold calls on your cellphone - imagine if they came from your neighbouryou see every day - aaarggghhJosh Miller"It is likely that we will see more startups having trouble going from the seed round to the A round, or from the Around to the B round."Brad Feld, Bijan Sabet, Eric Hippeau and Josh Kopelman are having a discussion about this on Roundtable. Anyonewho is interested in this point should check it out: http://www.atroundtable.com/st...Sean WeinstockEveryones talking about entrepreneurship being the biggest driver of economies, and the government hypemachine is certainly doing its part to pump up activity. It seems, however, that entrepreneurs are getting or areabout to get squeezed at every level - whether its the web guy looking to get a round or the local grocer trying toget a loan and compete with the giant chain (which definitely provides value the local guys cant compete with).Anything we can do here, or just consolidate and hope the next up-cycle comes sooner rather than later?steve cheneyThis was simply an extraordinary post.dailypatriciaregularIt seems like there are a lot of factors to why it is hard for some startups to raise money. I dont know if that wouldhave mattered to the story, but I know a lot of entrepreneurs who cant raise money because theyre not the right fitfor the model, their ideas arent scalable, etc.I dont know if tight markets are necessarily bad. Low barrier markets have their own issues and problems. Id ratherbe in competitive versus saturated. Ive never seen anybody with a good idea and skill fail to take it to market or getwhat they need.Discipline and efficiency is always sexy.RadJazwelcome back strangerI think Thursdays should become "How to run a VC Firm Thursdays" ... Thanks Fred.ErikSchwartzregular Dad, sailor, geek. Founder at Synchronize.TVI see a ton of lifestyle businesses that are raising money. Companies that can easily be successful, but will never bebig. Also there are a ton of feature companies out there. But the founders are already thinking its a tech start upand it will have an exit.ShanaCinstigator Carries a can of Anti-Spamwhy are they raising,and are they getting the money?Babelfish Articles Oct 2011 Page 91
  • 92. ErikSchwartzregular Dad, sailor, geek. Founder at Synchronize.TVThey are raising money because they can.But it makes no sense to go raise $2M on $6M if the company is going to top out at $1M a year of revenue.Here are the questions I suggest you ask:1) Do you love doing this? Or are you doing it because you think its a "good space" or niche. I knew some guys whostarted a golf mobile app because they thought it was a good market opportunity. But none of them play golf.2) For consumer facing web stuff, would it be better for the end user if facebook or twitter did this? See the world ofdead twitter apps out there.3) For mobile. Is this likely to end up part of the OS? iOS5 is going to hurt of lot of companies that made iOS band aidapps.Its not overtly sexy, but I really like what bradfeld calls glue companies these days.Bryan BattenVery insightful, thanks Fred. As you mention that social and mobile are trending towards a more difficult place toinvest do you see any new trends or new areas of interest?As we get ready to start trying to raise money I hope that we find a firm as committed to their portfolio companiesas USV seems to be.Peter Sullivanregular Co-Founder of Tripl.comI think your angel investors seeing some flops resinates the most. It seemed almost trendy the past 12 months to bemaking investments based on 1 page executive summaries. I think its just a return to making more rational decisions.Nathan Guo Entrepreneurial, Tech-loving, Globetrotting, Chemical EngineerThe number of "me too" investments cant even compare to the Chinese internet scene. Literally thousands ofGroupon clones duking it out for tiny market share.How would a bursting of the Chinese internet bubble affect VC stateside?Tom LabusregularHow about accounting 101 for them!Nathan Guo Entrepreneurial, Tech-loving, Globetrotting, Chemical EngineerDont think that was included in The Little Red Book ;)Charlie Crystleinstigator founder, hacker, mover, shakerReally great post. (love shop talk).Do any VCs fund pre-product, pre-revenue platform visions?Rohan Rajivregular Blogger and Learning Enthusiast - Never Older, Only BetterBabelfish Articles Oct 2011 Page 92
  • 93. Theres so much doom and gloom in the media and has been so for many months. A lot of it is justified - Eurozoneleadership crisis, no clean up in Wall Streets behavior post 2008, Obamas inaction etcBut it leads me to wonder if things might be difficult if the media painted a different picture.Im not saying Marketing would solve the problems but a change in outlook and perspective may stem thedownward depression spiral..Tom LabusregularGloom is any easier story to sell.Rohan Rajivregular Blogger and Learning Enthusiast - Never Older, Only BetterYeah. Except whats easy is hardly ever right.and I think thats what inspired the mini rant..Robert Thustonregulartime for bold ideas matched with lean thinking, long runways, and supportive investors (believers)...Are the "me too" ideas youre seeing coincidence or copycats?Fernando GutierrezregularRegarding VCs raising money... if stocks and bonds are performing poorly, doesnt that put the bar lower for VCs toget money from LPs? relatively speaking startups are getting safer as financial markets go to hell (maybe hell soundslike too much, but Im in Europe and we are quite pesimistic lately!)Katiewelcome back strangerWas about to ask the same question. I would think LPs would be all over even mediocre-performing VCs right nowwith the kind of returns other asset classes are seeing.reecepachecoregular Entrepreneur/athlete.i see a lot of young companies as they start to raise moneydefinitely seems #4 is true as many of the angels i know and send new deals to are sitting out for a while or need tocheck with their CFO a.k.a. their spousefredwilsonbartender I am a VCIn our family gotham gal is the angel and i am the cforeecepachecoregular Entrepreneur/athlete.hence why I said spouse ;)JC WebbThat is great news. Let the cream rise to the top. We need to innovate ourselves back to greatness and makevaluable products for people.Babelfish Articles Oct 2011 Page 93
  • 94. Francesca Krihelyregular I enjoy thinking about culture.I agree. Im waiting to see a huge wave of truly disruptive technology--not consumer web sites or new time socialnetworks but rather game changing code or systems that can alter the consumer web, build better infrastructure fordevelopers and create more solution-based architecture for people all over the globe. This is at the heart of geekculture.I hate to call out USV companies, but I think two examples from their portfolio demonstrates the "next" line ofinternet investments that Im craving. They are not consumer, but they are designed to build capacity of theconsumer web. The first is Twilio, which is in the next wave of social, building on the capacity of mobile networks inleveraging cloud infrastructure to boost communication. The twilio API is one of the most amazing things Ive seen inthe mobile space--and I saw a great hack with it just a month ago at HackNY. The next is 10gen. Again, a cloud-basedinnovation, a little older than twilio, and not consumer-focused. Im not a developer, so I dont understand a lot ofthe intricacies of their database system, but they have done a fantastic job not only making their product fantastic,scaleable and flexible, but theyve also made it "sexy" in the developer community. If I had money I would definitelyinvest in 10gen. So where are these "geek" culture products? I know its out there but it is not getting press. Werejust hyped up on social and advertising and Im nervous this will be the only fascinations that will trickle down to theuniversity level and influence the next gen of innovators.JC WebbYes. Right on with 10 gen. MongoDB allows for some tremendous performance and scalability. But I dont believe wehave paid them a dime yet and Id prefer to keep it that way if we can help it. Haphazard social add-ons can makeyou want to roll your eyes, but done right and with purpose, they can showcase some of those other technologiesyou crave and actually help drive them forward. Done right, social is still one of the most powerful applications oftechnology. I wouldnt dismiss it too quickly as yesterdays news.Francesca Krihelyregular I enjoy thinking about culture.Youre absolutely right and Im sorry if I made it seem like I was dismissing social. Social is almost a new searchengine. I think social will definitely stay with us, but when I think of "investing" I think of building current products toscale and investing in the next wave. My framing was harsher towards the current wave, but I do love social. It helpsus have conversations like these.Cam MacRaeregular Was a startup guy. Temporarily an academic. I may never have a real job.Yep. I quite like 10gen. Im pretty excited about Revolution Analytics too.Francesca Krihelyregular I enjoy thinking about culture.Wow I havent heard of that yet, but by just taking a peek it looks like very compelling stuff. Will definitely take acloser look. Thanks for the rec.Cam MacRaeregular Was a startup guy. Temporarily an academic. I may never have a real job.No problem.They just recently partnered with Cloudera which is also pretty exciting.If ever there was a segment full of slow moving monoliths this is it and in my opinion theyre tearing it up.Trish Burgess-Curranregular Technology enthusiastBabelfish Articles Oct 2011 Page 94
  • 95. Couldnt agree with you more. Certainly social is extremely important and it still has a lot - or at least some - spaceto grow but I am also hungry to see and experience the next stage. It may not be as flashy but it will be just asimportant, maybe more.I love how you put it geek culture products!Francesca Krihelyregular I enjoy thinking about culture.Totally! Geek culture--I.e. all open sourced everything--is incredible! Ramen + Linux = our current web economy.Another interesting fact: most geek culture products are made for the common good (i.e. mozilla). Michale Harrisonwrote this about geek culture on the Geek Dad Wired blog last year:"geeks are passionate and super interested in whatever it is that turns their cranks. For good or bad — but usuallyfor good — this means they know what the hell they’re talking about when they talk about it. This is a good skill tohave!"heres a link to the whole post (http://www.wired.com/geekdad/t...Facebook UserI agree completely. We arent seeing a dearth of cash for startups - seems like too much money chasing a few deals.Last year we were having problems filling a round, but this year I had to make calls to let investors know we couldntget them in. It is a little like it was in 1999. Of course, everything changes. Not sure when this current fund raisingenvironment will stall.StumpsterHate to burst your bubble, but its more inevitable than ever now the pop is coming. Unfortunately this time will bea lot worse than the dot com crash of 2000, so brace yourselves.fredwilsonbartender I am a VCif you are right, then there will be lots of opportunity out there for investorsStumpsterNot so sure investors will be so easily convinced in the space this time around. The industry is maturing and the daysof big returns are fading.fredwilsonbartender I am a VCIts all about entry price in a down marketkidmercuryinstigator dedicated to re-building the worlds money supply.what if its an inflationary collapse? eurozone, USA, britain, japan all have sovereign debt problems. a crisis ofconfidence in which capital flees could lead to a currency crisis as has occurred many times throughout history,argentina in 2001, iceland in 2008, etc. then all dollar denominated assets, including startups, are screwed.but no worries! fredbucks are closer to reality than many suspect. #fredsquareStumpsterWorst case scenario for investors doesnt change in a down marketBabelfish Articles Oct 2011 Page 95
  • 96. Dave W Baldwinregular Co-Founder- Design/Funding projects delivering next level of AI (autonomous)beneficial toCommunication, Education, Therapy and more.Instructive opinion in compact form. Youre right regarding it better to be new VC raising vs. existing VC that has hadmediocre to fair.SummaryFred Wilson is a Managing Partner at Union Square Ventures and Flatiron Partners.He received his M.B.A. from The Wharton School at the University of Pennsylvania.More »Fred Wilson Explains Why Most New Angel Investors Are About To Get A Seriously Rude AwakeningHenry Blodget | Oct. 13, 2011, 7:24 AM | 3,592 | 12What Will It Take To Become The Internets Next Big Thing?Building A Company Vs. Building A BusinessMeet Rent-A-Grandma: The Child-Care Service That Only Hires Women Over The Age Of 50An article in the Wall Street Journal about a "cash crunch" for startups has thrown the tech world into a mini-panic.Fred Wilson of Union Square Venture partners has the smartest take weve read so far, which is that the only reasontheres a "crunch" is that there are now just a mind-boggling number of startups competing for a finite number ofusers and a finite amount of cash.Good, differentiated startups are still able to raise all the money they want, Fred says. But he and his partners arenow so deluged with business plans that he feels like the "Annie" casting director who spends all day fending offmothers and red-haired daughters at casting calls only to arrive home and have yet another red-haired kid pop outof a bush and start singing "Tomorrow!"(Our analogy, not Freds).And of course you dont need to be a genius to know how this will end.It will end the same way it always does: In a bust.Most of the current crop of startups seeking funding are "me too" companies rushing to get in on the action thatbegan back in the dotcom bust (and then again after the financial crisis) and, unfortunately, they are late to theparty. Many of these startups will go bust, and many of the early-stage investors who fund them will get clobbered.And then, for a while, the startup game wont seem so fun anymore, enthusiasm will cool, and valuations will drop,and then, eventually, a few brave folks will wade into the water again, and the cycle will start anew.In other words, its the same as it ever was. Techs a cyclical business. And we appear to be nearing the top of astartup cycle.But Fred also makes a great point about another little boom-let that has inflated rapidly in recent years--angelinvesting.In the boom phase of the startup cycle, angel investing seems like the greatest game in the world. Why build just onecompany when you can fund 20 companies and have eager entrepreneurs build them for you? Why put all your eggsin one basket? Why commit yourself to a single opportunity? Why not spread your money around and cash in likethe top-tier VCs youve always been reading about?Well, for one thing, because its harder to cash in than it looks.Babelfish Articles Oct 2011 Page 96
  • 97. To be clear: It is VERY EASY to be an angel investor. All you need is money and deal-flow.Whats hard is to be a successful angel investor--someone who invests in a few companies that get huge exits, thusproducing great returns for your fund no matter what all the other investments do.And thats where, in past cycles, angel investing has gotten a lot less fun. And its where (and when) a lot of newangel investors decide that they rather like running companies after all.Fred thinks were getting close to the peak of the latest angel cycle. And we agree.Angels may be topping out, at least temporarily... What happens to every angel is that they start makinginvestments. They get excited. They make a bunch of them. And then two things happen. First, a few of theirinvestments struggle and fail. And second, a few of their investments cant raise money and come back to them for asecond round. They begin to realize that startup investment isnt so easy and that they have a finite amount ofmoney they can invest or that they are willing to invest. They pull back a bit, see how things are going to play out,and become a bit more cautious. Given the massive amount of angel capital that has come into the market in thepast few years, I wonder if we are seeing some cooling of that market as all the new investors take stock of wherethey are and where they want to go next.So, batten down those hatches, angel investors! It could get rough for a while.And, by the way, go read the rest of Freds post, which has excellent thoughts on the state of the startup cycle >Unified Marketing - Going Beyond Integrated MarketingAugustine Fou | Contact Augustine | Comment | Print versionIntegrated marketing has been a widely used and much abused term recently. It has been used to loosely describeactions such as adding a website URL to a TV ad or sticking a QR code on a print ad. But real integration is still scarce,even among the savviest marketers. Many factors still stand in the way of true, unified marketing - for example,apples-to-oranges metrics, different departments within advertisers organizations and different agencies servingeach, and diverse and siloed disciplines of marketing. With a greater focus on ROI and need for better effectivenessand efficiency in advertising and marketing, let us define and discuss "unified marketing" and how to actually put itinto practice.From Simplistic Integration to Ecosystem ViewWe start first with the concept of "Digital is a Philosophy," which I discussed several columns back. Instead ofthinking about "digital" as the online channel and associated tactics, marketers should think of "digital" as thecollection of habits and expectations of modern users. Their habit of searching for everything online and theirexpectation of being able to find information instantly should guide the selection of channels and tactics by themarketer. Furthermore, insights derived from the users actions in digital channels (like search patterns andconversations on social networks) should inform not only the marketing message but also what content is created toaddress these users need for information.If we focus our attention on the user first and what their informational needs are, as opposed to our own productand what message, channel, or tactic we should use to market it, we will be "forced" to think about all the differenttouch points that the user would likely use to reach us. These touch points can then be plotted on a single unifiedgraph that I call the "Ecosystem of Touchpoints." Notice the users purchase funnel is now wrapped around the userin the middle and the tactics can be plotted in the correct "quindrant" (1/5th of a circle). And notice the threeconcentric circles: 1) on-site - on the main site that the marketer owns and controls, 2) off-site - on other venues likeFacebook, Twitter, etc. that the marketer owns and controls, and 3) third-party - on venues like Google, YouTube, orAmazon that the marketer does not own or control. By plotting all the marketing tactics on one chart, it becomeseasy to visualize where there are redundancies (i.e., overspending) or gaps (i.e., not enough is being done).Correlating Metrics Across Channels and Tactics By Using User ActionsBabelfish Articles Oct 2011 Page 97
  • 98. With the "Ecosystem of Touchpoints" framework above, marketers can indeed optimize media mix and select thebest channels and tactics to serve their potential customers. The next key benefit to a unified approach is that wecan start to correlate the relative effectiveness of channels and tactics too, whereas before, the metrics from eachchannel were different - apples-to-oranges - and were not easily compared. In our unified framework, the actions ofthe customer become the central metric. For example, a TV ad may inspire someone to go look for furtherinformation online - which can be seen via search volume, the exact search keywords they use, and visits to or pagesviewed on the website. Similarly, print ads, radio ads, outdoor billboards, etc. will inspire people who are in themarket and in the mindset to go further research their purchase. Digital tactics can also play here - for example,users will click on ads when they see something timely and relevant to what they are looking for. If they are actuallyin the mindset and also in the market, they will go on to further research the purchase and spend time on theadvertisers websites, etc. Note, this is less applicable to impulse-type products like candy, soda, or even iTunessongs.Once the metrics to measure success are also focused around the actions that users take, then marketers will beable to correlate the relative effectiveness of marketing activities across channels. In other words, did a dollar spenton TV drive more or less user action than the same dollar spent on a digital tactic such as search? Did a dollar spentin print drive more or less user actions than social media? Previously, metrics from Nielsen (TV), Arbitron (radio), orPIB (magazines) could not easily be correlated because the media were different, measurement techniques weredifferent, and assumptions/approximations were different. Furthermore, the number of people the advertiserpotentially "exposed itself to" is far less relevant and actionable than the number of customers who actuallyresponded.So it would serve marketers and advertisers well if they abandoned the old metrics of reach and frequency andadopted the unified marketing approach and the associated metrics that are based on actual user actions.Take Action on Unified MarketingIf the unified marketing framework can help determine marketing mix and media spend allocations and can providea way to correlate measurement of relative ROI across all channels, it should also impact the way advertisersorganizations are currently set up and the associated processes. More specifically, current organizational structurestypically have advertising departments separate from marketing, digital, promotions, market research, R&D, etc.Each department has their favorite vendors and metrics too. But these artificial functional and departmental linesare no longer necessary under the unified marketing approach.In fact, unifying all departments and functions around a common understanding of customer, their informationalneeds, and where and how they look for information will help break down departmental silos, which havehistorically hindered true integration - i.e., unification. What if R&D and product development departments wereinformed by real-time insights about customers needs? What if marketers could listen for the exact words thatcustomers used to tell peers about why they liked (or hated) a product? What if market research had the benefit oftens of thousands of customers providing continuous feedback? And finally, what if the CFO had a way to comparemarketing spend across all channels and tactics and determine relative ROI such that marketing spend could bequickly and continuously optimized, rather than just once a year during budget season?ConclusionSo, unified marketing is a framework that allows all marketing tactics - traditional and digital - to be plotted togetherand compared. It will help reduce redundant efforts and identify gaps that should be filled with marketing activities.By unifying the metrics around the actions of the user, we also avoid the untenable situation of attribution - nosingle tactic is enough nor solely responsible for users taking actions; they all play a role. The unified marketingframework says exactly this and allows for the calculation of relative effectiveness and ROI (i.e., which tactic drovemore user actions) of all marketing tactics no matter what channel or discipline they belong to. This enables theoptimal allocation of marketing dollars.To take the first step in making the unified marketing framework part of your daily process, start by plotting all yourmarketing activities on the "Ecosystem of Touchpoints" chart. From there, you will be able to see where there areBabelfish Articles Oct 2011 Page 98
  • 99. redundancies or opportunities and then adjust your marketing mix. Then correlate relative effectiveness and ROIacross tactics and channels by focusing on which marketing activities drive the most user actions. Finally, adjust yourorganizational structure and processes to match the new unified approach instead of the legacy departmental orfunctional silos.Auto brands must go digitalPARIS: Digital channels such as social media and online word of mouth are playing an increasingly integral role inshaping automotive purchases, multimarket research has revealed.Capgemini, the consultancy, and SmartRevenue, the insights provider, surveyed 8,000 consumers in eight markets:Brazil, China, France, Germany, India, Russia, the UK and the US.Overall, 94% of people reported using the web as a research tool when making car purchases, a figure which hasgrown from 87% in 2010, and can be measured against the score of 61% logged in 2005.Elsewhere, 71% of the panel would be more likely to buy a vehicle if they discovered positive feedback on socialmedia, and 51% stated critical comments may reduce the probability of opting for a specific model.An additional 73% of contributors thought it was "important" to have user-generated content on brand and dealersites, an improvement from 65% in 2010.Currently, 37% of people look to dealers social media pages on the path to purchase, 35% use third-partyautomotive forums, 28% turn to specialist blogs and 22% watch content on video-sharing sites.When it comes to actually making acquisitions via the web, 42% of interviewees were "likely" to do so, up onepercentage point on 2010, and by five percentage points on 2009.Among the primary reasons to buy online were securing a lower price discount on 35%, the ease and speed oftransactions on 29% and the ability to acquire a vehicle not available locally on 13%.One consequence of the rise of digital media has been a shortening of the purchase cycle. Some 57% of customersspent less than two months on the path to purchase, and 43% made their first visit to a dealer under a month beforebuying a car.Concerning mobile, 68% of the sample would like apps that locked their car, 67% expressed interest in remindersabout servicing, 64% desired GPS tools to track down their parked vehicle, and 63% might register to receivemanufacturer notifications.More broadly, Capgemini reported brand loyalty was falling. It found that 61% of respondents would purchase orlease the same marque as their existing vehicle next time round, off from 65% in 2010."As technology evolves in the manufacturing and marketing of cars, the industry must ... understand how consumerdynamics are evolving and consider the impact these changes may have on their business," said Nick Gill,Capgeminis global automotive sector Leader.Data sourced from Capgemini; additional content by Warc staff, 13 October 2011Babelfish Articles Oct 2011 Page 99
  • 100. 10/12/2011 @ 9:01AM |1,602 viewsSocial Business Is No Longer OptionalSocial Business Is No Longer OptionalThe sudden prominence and popularity of social media has created an unfamiliar venue for businesses – a worldpacked with both opportunities as well as pitfalls. Done well, socially-designed programs can help create acommunity of loyal advocates; done poorly, you brand yourself as inauthentic, out-of-touch, and maybe worst of all,boring.This is the first of an extended exchange on the slippery crosswalk between social media and brand communications.DISCLAIMER: this blog is not the latest entrant to highlight the shiniest new social network. Nor what social mediaexperts are hyping or blowing up on any given day. The goal is to highlight material issues senior marketers andcommunications execs should consider as they make social practices integral to their business.30 images Gallery: Social Media OverachieversOne thing is certain: social business is no longer optional. More Americans now get news primarily from the Internetover traditional news sources; the number of 18-29-year-olds citing the Internet as their main source of news hasnearly doubled since 2007. Even more pressing to marketing leaders purchase intent is influenced more than ever byboth positive and negative online reviews.What’s on CMO’s minds as they go social? How do you create a first-rate social brand? And why does it matter? Toanswer these questions our firm, Weber Shandwick, partnered with Forbes Insights to find out more. We wanted toknow how companies understand and plan their social efforts, and what emerging social leaders were doing rightthat other companies were missing. Not unexpectedly there’s a strategic gap to be addressed. Here are thehighlights.So let’s start with the good news. Companies no longer need to be convinced that an effective online presence isessential to their brand’s reputation.The executives in our study, drawn from companies all over the world, attributed 52% of their brand’s reputation totheir online social presence – and project that online sociability will account for 65% of their reputation in the nextthree years.And the not-so-good-news.While most companies have added social media to their marketing mix, only short list (16%) consider their efforts tobe in their words “world class.”In our study we find most businesses have trouble establishing clear goals for their social media strategy, renderingtheir efforts scattered and ineffective. Assessing impact remains a clear problem organizations need to come toterms with. Then there’s increasing complexity to navigate, one CMOs feel ill-prepared to address.Companies that feel they get the most return from their investments are making real, authentic social engagement acentral principle throughout their enterprise. They strive to maintain a constant interaction with their customers,learning from them directly what they want and don’t want on topics, products and experiences.The key take-away here: for social media to be seen as successful, marketers will need to think beyond impressions,views and likes. And more about products, experiences and campaign ideas that have customer intelligence andpreferences factored in.In the coming posts, we’ll explore ideas and practices that show world-class potential. We also want to know aboutyour social branding efforts. Are you really engaging with your customers – or are you boring them into yourcompetitor’s arms? What brands are you most jealous of? Or have you decided to bypass social media for the mostpart, and if so, how’s that working out for you?Babelfish Articles Oct 2011 Page 100
  • 101. Marketers face new testsNEW YORK: Marketers are becoming increasingly "stretched" thanks to the rise of new technologies and empoweredconsumers, and many also lack the tools to counter these trends, a study has found.IBM, the business services firm, polled 1,734 chief marketing officers in 19 industries and 64 countries, a panelincluding executives representing 48 of the 100 most valuable brands listed by Interbrand.It found that 79% agreed the situation will become more complex in the next five years. But just 48% felt ready tomeet such challenges, leading to what was termed a capability "gap".A 71% share of contributors saw the contemporary data "explosion" as an obstacle, standing at 68% for social media,65% regarding the proliferation of channels and devices and 63% discussing changing demographics.Elsewhere, 59% cited financial limitations, 57% mentioned falling brand loyalty and 56% referred to tapping growthmarkets, customer collaboration and proving ROI. Privacy concerns logged 55% and global outsourcing scored 54%.A majority of interviewees did not think they were prepared to tackle each of these matters, leaving regulatoryissues and corporate transparency as the sole areas where confidence was higher.Babelfish Articles Oct 2011 Page 101
  • 102. Platforms attracting marketers included social media, with 82% of operators set to increase their activity goingforward, coming in at 81% for analytics and CRM, 80% for mobile apps, 73% for content management and 72% fortablet apps.When anticipating the measures which would be used to determine success in five years, 63% of companies believedROI will be central, a role 58% afforded to the customer experience, 48% attributed to conversions and 45% handedto overall sales.More broadly, IBM revealed 80% of marketers hold "significant influence" over promotional areas like advertising,communications and new media, but only 56% claimed the same status for product factors such as portfoliomanagement and R&D.Similarly, a modest 44% can shape "place" decisions, be it channel selection or supply chain management, matchingthe number that had a major say on pricing.Another key difficulty relates to understanding shoppers. Over 80% of firms employ traditional strategies like marketresearch and benchmarking while making decisions, and more than 60% monitor campaigns, brand metrics,customer service and sales.However, focusing on the individual in less common: 74% of companies use consumer analytics, declining to 48% fortracking user reviews, 42% for keeping up with third-party ratings, 40% for listening to online buzz and 26% forcapturing data from blogs."Approximately 90% of all the real-time information being created today is unstructured data," Carolyn Heller Baird,of the IBM Institute for Business Value, said. "CMOs who successfully harness this new source of insight will be in astrong position."Data sourced from IBM; additional content by Warc staff, 12 October 2011Perspectives on The New Facebook: Part 1Posted by Leif Fescenmeyer (@ebreakdown) & Scot Wheeler (@scotwheeler) / September 28, 2011 12:02 pm/ Chicago We’ve asked our team to comment on the changes to Facebook announced at the F8 summit last week from theperspective of different disciplines. In this first installment, Leif Fescenmeyer (from our Insight & Planning group)looks at the implications for branded interactions and Scot Wheeler (from Marketing Science) discusses what, if any,changes to expect from Facebook insights.Leif: Overall, I think the new Facebook interface has a lot going for it and at the same time, may have some hurdlesbesides the general distaste for change from users.Brand ImplicationsIt will be interesting to see how the new Newsfeed and realtime content Ticker will impact impressions andengagement on branded content from Pages. Already, we’ve noticed that impressions are no longer published onbrand posts. How will “Top Posts” integrate branded content or will it at all? Will brands, in the future, be able tobuy “Top Posts?” If branded content is not published as frequently or is secondary to Top Posts, will consumers andfans interact with brands as much as they did before? If so, how will brands prepare for decreased engagement?News Feed and TickerThe revamped Newsfeed and Ticker went over like a lead balloon with users, due perhaps to its unceremoniousintroduction. I’ve heard the Ticker called “a Facebook within a Facebook”–Inception style. It is and it isn’t. It offersBabelfish Articles Oct 2011 Page 102
  • 103. the most up-to-date, low impact information for the user without congesting the Newsfeed. I’m all for it. The moreways a website or application can organize and publish information, the better. They say it’s all about theinformation, when actually it’s all about the organization and analysis of the information.Well done Facebook. I don’t know if it was your tactic to change over Newsfeed and Ticker before the keynote, toget the “Facebook Change Hate” out of everyone’s system, then present the “pretty-change” that everyone lovesand can’t wait to get their hands on. If it was, ingenious. If it wasn’t, well, it worked to your benefit.Scot: From a measurement standpoint, the Facebook changes announced at F8 – while very welcome from myperspective as a user – have so far amounted to no change at all in my role as a data analyst.The new design and sharing elements are undeniably cool, but despite the changes, Facebook remains the only partywith full insight into any users’ integrated history, and the exchanges across the social graph created by its users.Implications of Open GraphFacebook’s business is still built on targeted marketing and its expansion of interest signaling from “liking” to anyverb will certainly improve its ability to target based on unique and shared interests. Every business on Facebookwould benefit from an understanding of their consumers’ shared interests and key influences across their socialgraph, but Facebook retains a tight hold on their sole position as market-maker.With their changes in user experience and interactive capabilities, Facebook is seeking to solidify a place as the onetrue personal portal. In this context, marketers need to immediately begin a shift from thinking of Facebook as aforum for messages from brands that users have liked, and/or a system for serving targeted ads. What Facebookultimately wants to to with its data is drive highly targeted and personalized apps serving every sort of commerce,and I’m sure they have a plan to extract some value for their role in each exchange.Facebook InsightsFacebook Insights offers a very shallow level of insight into users and their engagement in the social graph. TheFacebook API and Facebook Query Language (FQL) have historically offered some opportunity to access more depthin users’ interests and interactions, but access to the true depth of insight into preferences, influences/influencersand social interactions available to Facebook itself has always been stifled by API limits and awkward FQL indexingschemas.Ultimately, marketers have no right to the data that Facebook has collected, so there is no real basis for protest fromthis standpoint – we data-driven marketers must take whatever Facebook is willing to offer.The exchange for the new and fun ways to express your “true self” and interact with “friends” is that this can onlyhappen in Facebook. While it’s true that all of the information you enter into your profile can be exported (inFacebook’s token nod to calls for data portability), none of your history of activity on Facebook – your likes (and nowother verbs), the comments you’ve made on other posts – none of that stuff that is the true core of your Facebookuse and history, that is of true value for marketing insight, none of that can actually be exported. That history is notyours, unless you stay in Facebook. (To paraphrase the Eagles, you can check-in any time you like, but your data cannever leave).In a truly open semantic web, each individual could access and share any part of their prior history of digitalinteraction as well as current interests and preferences within and across that web with any party or site, and for anypurpose, be it social exchange, play, commerce, etc. Facebook is becoming a really compelling place to hang outonline. Unfortunately, Facebook’s current model seems aimed at becoming the only place to hang out online, atleast if you want a web that understands your preferences and networks. (Read a longer post from Scot onIntelitecht.)*In our next post on this topic, CM’s team of Community Moderators will discuss the changes from a branded user’sperspective.Babelfish Articles Oct 2011 Page 103
  • 104. Perspectives on The New Facebook: Part 2Posted by Lauren Lindsay (@realgoodtalker) & Steve Mannino (@stevemannino) & Amy Gosalia (@amygosalia) /October 3, 2011 6:13 pm/ Chicago & TorontoWe’ve asked our team to comment on the changes to Facebook announced at the F8 summit from the perspectiveof different disciplines. In this second installment, our community moderators, Lauren Lindsay, Steve Mannino andAmy Gosalia look at user reactions and community management challenges.Lauren: Changes in User BehaviourFacebook’s move to the Timeline is going to make users focus first on altering and updating their own profiles. Theyearbook-like format means a lot of work for people who’ve had Facebook since college and are now going to haveto downplay years of partying photos. During this transitionary period, we may see a slight drop in brandinteractions, as users pull their attention away from the Newsfeed to focus on making sure those old pictures won’tcost them their jobs.I’m interested to see how users can take advantage of the organization factor of Timelines without many personalphotos. Some people just don’t use Facebook as a place to display photos of themselves – how will they keep theirtimelines interesting? Will book apps and updates have covers attached to them? Can you put in movie clipsattached to the movies you’ve seen?With Open Graph, Facebook has removed the need for the self-measurement aspects of using GetGlue, Foursquare,and a host of other self-reporting apps. Right now, I’m using them to keep track of what I’m reading and doing aswell as to get badges and points. If they introduce badging and rewards, many users will probably never need to usethose external apps again. Lastly, I wonder how much Andy Samberg was paid to be Fake Zuck. It’s interesting to see how much of a culturalspectacle a developer conference can be. It’s sad to say, but I find myself more interested in the fallout from F8 thanin any political debates and speeches. I think this may be because Facebook is making it explicitly clear what effectsthese changes will have on my day-to-day life, which politicians don’t accurately do. Isn’t that a little strange?Steve: Common User ApprehensionsWith every change to Facebook’s functionality, we always see a backlash as longtime users question their loyalty tothe social network, feeling as if “big brother” is making its move. With the changes announced at F8, this effectappears to be amplified.If we take a step back and really look at the two major new features, Ticker and Timeline actually represent veryminimal changes to publicly available user data. Yes, Timeline will definitely be a big change in the way that data isrepresented, but in reality it’s simply a new, fluid way of viewing all the content users have already been sharingwith friends and connections.Everything in the Timeline was already available to everyone else; it’s just now readily available in a user friendlyexperience, threaded by year.With the upcoming integrations with other services like Spotify and Netflix, Facebook promises to provide value tothe user as well as an increasingly interactive environment, simplifying the sharing they were already doing viamultiple apps and plugins.So, to the Facebook users who see these changes as an invasion of personal privacy, just remember one thing:Facebook is still an opt-in medium.Amy: A Community Manager’s PerspectiveThe unveiling of Timeline during September’s F8 presentation has created quite the social media buzz lately as userstry to navigate through Facebook’s new features. Emotions have been mixed; some see the changes as anopportunity to humanize their profile while others think the changes are unnecessary and pose even morecomplications to an ever-changing Facebook user interface. But what will these changes mean for brands and howwill companies engage consumers past the “like” button?Babelfish Articles Oct 2011 Page 104
  • 105. Currently, brands have a limited bag of tricks when it comes to pictures, posts and content distribution. Oncecontent has been posted it has the potential to fall into an abyss as users have the option of hiding status updates –no one wants to be bombarded with promotions and meaningless chatter! If Facebook does indeed decide to rollout Timeline for brand usage, not only will this present a huge opportunity for engagement but it will completelychange the game for companies on Facebook.Brands will now be able to shift their primary focus from building and maintaining conversations to compellingcontent that tells a story. Instead of treating Facebook as just a community that’s updated post by post, moderatorswill be able to connect with consumers on a more emotional level by capitalizing on the infinite scroll feature that isTimeline. Brands will be able to speak to the present as well as the past, reigniting nostalgia and forgottensentiments. The look and feel of Timeline brings Facebook closer to a blog and away from a “chat-like” forum. It willbe interesting to see how companies use Timeline to their advantage as it opens the door wide open to be creativeand think outside of the box.In our third and last post on this topic, CM’s tech team will discuss the ramifications of the proposed changes from adeveloper’s perspective.facebook / Social MediaPerspectives on the New Facebook: Part 3Posted by Kevin Malone (@kmalone) / October 11, 2011 1:26 pmBabelfish Articles Oct 2011 Page 105
  • 106. In this third and final installment, Senior Developer Kevin Malone shares his thoughts on Facebook’s workflowimprovements from a tech perspective.What are they going to break this time? That’s probably the question most Facebook application developers werethinking at the start of the f8 2011 conference. When it comes to Facebook, change can be scary. While users ofFacebook get all worked up over interface changes, those of us who build applications on top of the Facebookplatform have legitimate concerns. Namely, did the changes break our applications? Unfortunately, it happens moreoften than anyone cares to think about.Thankfully, this post isn’t about what Facebook broke. It’s about what they have made better. Facebook hasintroduced a number of changes that will make the lives of developers a bit easier.Platform DocumentationAll platform documentation has been updated. With clients increasingly asking for Facebook applications orintegration into their web properties, we need documentation that accurately reflects and describes what can beaccomplished using the platform. If we’re to push through new and compelling uses of the platform, we need a placeto validate the functionality we would like to create. Only time will tell if the documentation will remain current.As part of this change, the top 5 related questions from the Facebook-specific version of StackOverflow are includedin every page of documentation. For those of you who aren’t developers, StackOverflow is an invaluable resource forgetting answers to development related questions, and Facebook recently partnered with StackOverflow to create aFacebook-specific version of the site.Developer App updatesThe Developer App allows developers to create and manage new applications. Some of the updates to the DeveloperApp outlined below have been rolling out over the last month or so, but they were officially unveiled at f8.Let’s not be friendsPreviously, users who were given roles on an application (admin, developer, tester, insights user) had to be friendson Facebook. This created an extra step to adding and assigning users to different roles. Previously, the user withtherole of application admin (or developer) had to first friend the user. That user then had to accept. Once both userswere friends, the application admin could then assign the user a role. Now, there is no requirement for users to befriends on Facebook in order to jointly work on an application. This greatly streamlines the development process,saves colleagues the discomfort of getting more personal than they might like, while reducing time spent curatingpersonal profiles.User groupsYou can now add Groups to any role within an application. If you don’t have a Group already created, you can createone right from the Developer App. If you already have Groups created from previous applications, those Groups canbe easily added. This makes it nice if you have a team of people that always develop or test your applications. Youcan create the appropriate Groups and manage those Groups like you would with any Group on Facebook. By addinga Group to a role, you don’t have to add each person individually, eliminating the risk of leaving someone off the list.Test usersThe ability to create test users is essential to testing the functionality of any application on the Facebook platform.For example, how would you know if the code you wrote to crawl a user’s social graph is working if you don’t haveany users to test against? For obvious reasons, you wouldn’t want to add real users to an application that is indevelopment.Developers have been able to create, manage, and add test users for a while now, but it had to be done using thetest user API. Now, developers or application admins can create and manage test users through the applicationsettings within the Developer App.Before the introduction of the ability to create test users (and I’m sure it’s still happening now), people would createfake accounts for testing applications. However, be warned, Facebook is actively searching for fake accounts, andthey will be removed as they are found. You can’t blame them, either. Fake accounts are also created for spamming,and we can all get behind a more safe and secure Facebook.Babelfish Articles Oct 2011 Page 106
  • 107. Where am I going to host this thing?One of the first things a developer needs to know is where the application will be hosted. Whether it’s for QA orproduction, every application needs a home. In a few simple steps, you can now add Heroku application hostingdirectly through the Developer App. If you don’t have an account with Heroku, one will be created for you as part ofthe setup process. You can choose the development environment you want to use: PHP, Node.js, Python or Ruby. Aspart of your application hosting, a Git repository (version control) is created and a sample application is installed onyour site. You can be up and running in a couple minutes. Even if you don’t end up hosting your production-readyapplication on Heroku, it can be a great resource for hosting the QA version of your application.While these updates may not be as high profile as the new Timeline or News Ticker, they are key to simplifying theprocess of developing on the Facebook platform. The quicker we can get our apps out, the better it will be to refineand iterate on them.October 2011Welcome to a paradoxical new era for business.As today’s companies grow ever larger, the traditional market segments they serve continue to splinter and shrink.For many multinational corporations, fractured “long-tail” markets, coupled with the need for ever-larger customersegments to sustain growth, mean that the game has changed—fundamentally. Long accustomed to targeting huge,Babelfish Articles Oct 2011 Page 107
  • 108. geographically distinct mass markets, companies must now focus on aggregating sales across and among thesearenas to generate the sales volumes they need to grow and thrive.But guiding a massive enterprise through the roiling aggregation waters is like trying to float a battleship in a millionbathtubs: The water’s there, but how do you capture enough of it to provide the buoyancy your company needs tostay afloat?Achieving growth that moves the dial in this new competitive environment—especially in the midst of persistenteconomic uncertainty and market volatility—requires first seeing and understanding the unique technology-drivenera that’s making both the problems and solutions possible. Accenture research on business growth has revealedfour technologies that leading organizations will rely on in the next three to five years as they make aggregated salesa reality.First, they’ll use sophisticated analytics to gather the massive amounts of data required to identify and serve newcustomers worldwide. Second, cloud computing will help them to combine services by providing users access toremote computing power and software on a pay-per-use basis. As a result, all companies will be able to access theadvanced computing power they need to identify global customer segments at the click of a mouse, without largeupfront capital investments.Meanwhile, two other technologies—mobile connectivity and online social media—will allow these companies toconnect with customers wherever they are located and spot themes shared among individuals worldwide,respectively.These technologies are helping companies target and serve consumers across the street or around the world withnearly equal ease. But they aren’t by themselves fostering the global market integration opportunity that’s currentlyforming. Instead, these technological developments are driving three shifts in the competitive landscape that areushering in the new Age of Aggregation.1. Converging business activities and players are blurring industry boundariesIn many industries, today’s leaders may sometimes wonder what business they’re really in. The crisp, clean lines thatonce separated markets are blurring as companies seek new ways to grow. The early winners in this newenvironment have excelled at recognizing and exploiting the growing overlaps among formerly standaloneindustries, as well as the fresh intermediary steps in value chains that offer new opportunities.The digitization of data is affecting the way products are created and delivered, which, in turn, is encouraging newparticipants to enter the fray at every point in industry value chains. Companies that possess distinctive businesscapabilities—in finance, for example, customer service or logistics—in one industry can now often successfully enterother sectors, especially when they have achieved the benefits of scale.Take Walgreens in the United States. Is it a pharmacy chain or a healthcare provider with a role in supportingemerging accountable care organizations? Such questions are resonating across industries and around boardrooms,as more and more companies attempt to position themselves to capture value in formerly unimagined ways. Applealready excels at this game, disrupting the music and publishing industries by becoming a de facto contentgatekeeper in both areas with its iTunes and iPad offerings. Elsewhere, a global food giant is exploring potentialopportunities in the pharmaceuticals sector.2. Rising incomes and the desire for affordable luxury are melding to create a new global middle classStrong growth in emerging economies is leading millions of consumers in those markets into the ranks of a fast-growing global middle class. In fact, according to the Economist Intelligence Unit, emerging markets will drive abouttwo-thirds of world economic growth in dollar terms across a range of industries over the next five years, at theexpense of developed economies.Companies will find the new spending power in these markets irresistible. There, citizens with annual householdincomes between $5,000 and $30,000 already represent a surging mass market all by themselves, and these newlyempowered consumers shop eagerly for stylish and high-quality goods, at more affordable price points.Babelfish Articles Oct 2011 Page 108
  • 109. Meanwhile, although older consumers in developed markets—now beset by debt, rising healthcare costs anduncertain retirement prospects—have become more frugal in their spending habits, they are demonstrating asimilarly pronounced interest in stylish, but affordable, products.Accenture expects the coalescing of these two consumer segments to become the center of gravity for globalconsumption in the long term. These converging trends add up to arguably the largest mass consumer market inhistory—a geographically fractured but cumulatively huge global middle class. We estimate that this new globalmiddle class will rise from approximately 1.8 billion households in 2009 to nearly 4.9 billion in 2030. Furthermore, itseems likely this trend will be a long-term phenomenon, with income growth through 2020 in developed countriesexpected to moderate.Successfully exploiting these trends will depend on a company’s ability to serve similar needs across multipleconsumer clusters simultaneously. For instance, the older consumer in developed markets, living on a fixed income,might seek out the same value-focused near-luxury car or discounted travel options that appeal to younger middle-class families in emerging markets.Some pioneering companies have already refocused their businesses on the emerging-market middle class. Fast-moving consumer products giant Unilever has been a trailblazer in harvesting value from these markets, whichcontributed the majority of the company’s revenues in recent years. In fact, because Unilever’s developed-marketrevenues actually shrank from 2006 to 2010, developing-economy sales contributed all of the firm’s growth.3. Savvy new emerging-market players are redrawing the competitive mapThe arrival of aggressive global players from the BRIC countries and beyond has begun to tilt the competitive centerof gravity away from developed economies. In the process, these new emerging-market leaders are moving pasttheir traditional low-cost value propositions as they aspire to become true global peers with Western firms in termsof innovation, technology and research capabilities. This global leveling of capabilities could ultimately cause anincrease in overall competitive intensity across industries that many Western players are not prepared to meet.Emerging-market companies—led by energy, telecommunications and financial services giants from Brazil, Russia,India, China and Mexico—doubled their presence on the Fortune Global 500 between 2005 and 2010, accounting forBabelfish Articles Oct 2011 Page 109
  • 110. nearly 20 percent of the total. Many took advantage of the global downturn to snap up distressed Westerncompanies.Getting their heads around the implications of this new age of aggregation might be one of the toughest challengesfacing today’s company leaders. Instead of pushing value into a physically defined market, companies must pluck itfrom similar customer segments worldwide. Sales territories and channels now span the world, and go-to-marketstrategies need to reflect both the similarities and differences of international customer segments (see Sidebar).As a result, companies need to think through a newly expanded set of options.They must first redefine their business strategies to include the new markets and segments noted here. They mustthen redraw their product/market matrix with an eye toward refining existing offerings and creating new ones, andwork out the issues that surround expanded retail channels, logistics requirements and supply chain managementconsiderations.Companies must also redraw positioning maps to take into account the entry of new competitors from emergingmarkets and other industries, and to incorporate the newly expanded set of customer values and demands that aresurfacing as companies bring scattered market segments together.Take, for instance, the concept of reverse innovation, where products such as low-cost ultrasound machines areintroduced to developed markets from emerging ones. This phenomenon is causing many leading companies torethink their product strategies of providing leading-edge functionality at premium prices and, instead, explore lessadvanced but more cost-effective alternatives for value-focused customers.Most important, leaders need to adapt their business processes to an altered environment where new “synthetic”markets arise as a result of a company’s own business savvy, not as a result of simple market trends. We call thesemarkets synthetic because they are pulled together from previously disparate pieces to form a cohesive whole.The practical effect of this is that new markets emerge as fast as companies can imagine them—considerably fasterthan traditional demographic and technology drivers. This will likely require a new paradigm of innovation andinnovation agility, one that is more responsive to market shifts and less dependent on the insular R&D labs.Babelfish Articles Oct 2011 Page 110
  • 111. Procter & Gamble has become a leader in this kind of innovation, investing $100 million to $200 million in a specificprogram with the goal of improving the company’s performance. It has embraced the concept of “open innovation,”seeking product ideas and insights from virtually anywhere—customers, employees, even competitors.As a result, the company has successfully overcome the “not invented here” syndrome, and actually partners withcompetitors to bring new technologies to market. Today, P&G receives more than 300 innovation ideas monthly viaits innovation website, and traces $3 billion in annual sales growth to the open innovation channels.Perhaps the most important aspect of this exercise is to ensure that identifying and entering these new markets andsegments doesn’t simply become another “to-do” item on the chief strategist’s already long list of deferrableactions. This requires strong, visible top management leadership and commitment, and active companywideacknowledgement that the organization’s business model has changed in dramatic ways.As momentum builds behind the technologies and trends that will make aggregation a reality, companies intent onoccupying this broader and deeper competitive landscape can immediately focus on five concrete actions to preparethemselves for the opportunities ahead.Target value wherever you find it. Exploit your already established competencies in other industry value chains.A compelling example of this strategy can be seen in the publishing industry, as computer and high-tech players co-opt physical book sales via their e-book readers and tablets. The popularity of Apple’s iPad, Amazon’s Kindle andother e-readers has stolen sales from traditional book retailers, forcing key companies into bankruptcy.Likewise, Best Buy looked beyond its traditional consumer electronics focus to partner its B2B unit, Best Buy forBusiness, with cardiology products manufacturer Cardiac Science Corp. As part of the partnership’s offerings, BestBuy’s Geek Squad computer and IT trouble-shooting service determines if physicians’ offices have the appropriate ITinfrastructure to support the latest Cardiac Science medical devices. Global shipper UPS is leveraging its capabilitiesto help companies with an array of logistics management services, which range from designing and reengineeringsupply chains to providing complete “order to cash” end-to-end global solutions for critical parts order fulfillmentand returns management.Think big. Then think bigger. Design offerings that tap into the core of global income, and then create extensions tocapture even more value.In many ways, this approach was pioneered by some of Europe’s low-cost airlines, which, through a number ofinnovations, created an entirely new role in their industry. Elsewhere, Haier Co., the Chinese multinational homeappliance maker, has succeeded with its inexpensive mini-refrigerators, air conditioners, dishwashers and similarproducts by first becoming the leading brand in China, and then expanding its coverage to include value- and price-focused customers in both developed economies and emerging markets.The company effectively adapts its low-cost product designs to new markets as necessary, and adopts localizeddesign, manufacturing and sales processes. As a result, the Haier brand earned the largest global market share inmajor appliances in 2009 and 2010, according to Euromonitor International.However, companies should be ready to pull the plug on pilot marketing efforts that could inadvertently putfranchise brands in unfavorable positions.For example, in response to the global economic downturn, P&G test-marketed Tide Basic laundry detergent, whichlacked some of the cleaning ability of regular Tide but cost about 20 percent less. While the cheaper version couldappeal to today’s more frugal developed-market shoppers, P&G ended the test in mid-2010. At the time, someobservers expressed concerns that Basic would dilute regular Tide’s premium market position.Babelfish Articles Oct 2011 Page 111
  • 112. Many developed-market companies continue to struggle with this new competitive calculus. It replaces the West’scurrent high-functionality/high-price marketing approach by lowering prices without sacrificing performance (andsupersedes the prior low-price/low-functionality paradigm in emerging markets). Overcoming this hurdle will be oneof the toughest challenges faced by companies looking to serve these markets.Create synthetic markets. Target and sell to customers across geographic and other physical boundaries.Companies no longer need to wait for markets to evolve. They can serve them as fast as they can identify them. As aresult, firms need to be in the business of envisioning new markets as well as targeting them.Examples of current synthetic markets include dispersed but like groups of expatriates, members of religions, orgamers and hobbyists. For example, Activision Blizzard’s World of Warcraft online game has attracted millions ofpaying subscribers worldwide. As a measure of its global success, the massively multiplayer online role-playing gamehas more players in China than it does in the United States, its home market, and by early 2011 had more than 11million subscribers worldwide.Let your capabilities set the pace. Rethink your approach to innovation to encourage individual initiative.In the Aggregation era, markets appear as fast as companies can act on their insights. As a result, innovation speed islimited less by market hurdles than by the speed and agility of companies themselves. Now more than ever,competition is not just about what you do but how you do it. The value of effective streamlining and innovation risesexponentially as the impact of getting there first with the most becomes the absolute measure of success.Innovation leader 3M encourages creativity within its workforce while efficiently managing resources throughout theproduct development process. The company tolerates failure that comes in pursuit of new ideas and allowsemployees to spend up to 15 percent of their time on projects of their own choice.It follows a “loose-tight” management approach, granting employees the freedom to innovate but enforcing adisciplined product development process that includes structured elements such as stage-gates. As a result, theBabelfish Articles Oct 2011 Page 112
  • 113. company is able to target and achieve stretch goals—fully 30 percent of its business unit revenues comes fromproducts launched in the past four years.Pursue “2-in-1 management.” Employ S-curve analysis to trace the rise, maturity and ultimate obsolescence oftechnologies or innovations and, correspondingly, their products and businesses.The performance of many systems over time tends to describe an S-curve as those systems wax and wane. S-curvescan thus serve as indicators of the expected remaining innovation headroom of current technologies, and providewarnings about the possible emergence of new replacements.In the past, S-curves tended to unfold at a relatively leisurely pace, giving firms plenty of time to prepare for thetransition to the next big thing. Today, leaders need to recognize that innovation S-curve timing is compressing, withdisruptive alternatives popping up without warning at an increasing pace. As a result, new value delivery solutionsand business models can often sneak up on slow-moving companies.Success today increasingly requires top leaders to manage not one S-curve at a time, but two simultaneously—today’s and tomorrow’s. Take Netflix’s founder and CEO Reed Hastings, for example, who was recently lionized byFortune for managing a successful business—mail-delivered movies on DVD—while concurrently launching andgrowing its successor (online downloaded movies).We call leaders like Hastings “2-in-1” CEOs—visionaries with one foot in the future who remain well grounded intoday’s competitive urgency. These leaders constantly scan the horizon for major market insights and the trends thatwill upset current market conditions and create opportunity. Such 2-in-1 leaders as Hastings and Apple’s Steve Jobsare pragmatic about turning their insights into action, knowing precisely when to scale up their new businesses, andthey rely on their employees as key resources for turning vision into reality._____________________________________________________________Viewed strategically, becoming a market aggregator changes some of the key rules of competition. It opens newavenues to agile players while driving slower-moving, more traditional organizations a step further behind. In orderto benefit from this new growth engine, leaders need to rethink their ideas about markets and customer segments,become more proactively focused on spotting and going after synthetic markets, and recognize that the entire worldis their new competitive battlefield.For further reading“Blurring borders,” Outlook, October 2011“Jumping the S-Curve: How to sustain long-term performance,” Outlook, February 2011Sidebar | Aggregation as strategyThe broad availability of new technological capabilities and the development of three trends—blurring industryboundaries, the rise of a global middle class and the entrance of emerging-market players on the global stage—havecombined to animate a startling new business model: Instead of treating geographically separate markets as distinctrevenue pools, companies can aggregate these sales across time zones, nationalities, cultures, social networks andinterests to serve truly global customer segments.To play this game, however, leaders need to cast off some traditional strategic notions. Instead of focusing onspecific markets, for example, they need to follow comparable customers. As a result, “where” you play necessarilybecomes a variable, not a set-in-stone strategic element: You play anywhere and, if possible, everywhere. It’s moreabout finding similarities among customers than defining them by their geographical differences.Clearly, the elements of an aggregation strategy will differ from industry to industry, but the core idea remains thesame: As technology increasingly enables consumers to shop the planet, businesses need to find creative new waysto deliver value to them on a worldwide basis.About the authorsBabelfish Articles Oct 2011 Page 113
  • 114. Wayne G. Borchardt is the global lead for Accenture’s Strategic Planning & Growth offering. With more than 17 yearsexperience in consulting, Mr. Borchardt focuses on strategic planning, growth strategy, pre- and post-deal M&A, andbroad transformation programs. Most of his consulting experience has been in the consumer goods, retail,pharmaceutical and healthcare sectors. He is based in Kuala Lumpur.Jill S. Dailey leads Accenture’s Strategic Planning & Growth group in North America. She has more than 12 years ofexperience in consulting with global clients on strategy, new growth opportunities, international expansion, andmergers and acquisitions, especially in the healthcare industry. Ms. Dailey is based in Florham Park, New Jersey.Paul F. Nunes is the Boston-based executive director of research at the Accenture Institute for High Performance. Hiswork has appeared regularly in Harvard Business Review and in numerous other publications, including the WallStreet Journal. He is also the coauthor of Jumping the S-Curve: How to Beat the Growth Cycle, Get on Top, And StayThere (Harvard Business School Press, 2011). In addition, Mr. Nunes is the senior contributing editor for Outlook.The authors would like to thank the following people for their contributions to this article: Kristen Anderson, Rogierde Boer, Henry Egan, Martin Frech, Richard Fu, Rita McGrath, Reshma Patil, Matthew Robinson, Vedrana Savic,Nicole van Det and Dimitri Xavier.Questions for Matt Spiegel, Digital Agency Vet and New Chief of Tap.meJoan Voight | October 12, 2011 Gaming start-up Tap.me got a shot of prestige and credibility when Matt Spiegel, CEO of Omnicoms OMG Digital,took the reins on Oct 10.The mobile ad gaming company wants to connect brands to gaming by offering gamers a menu of "power up"branded game enhancements before the start of the game. In exchange, gamers participate in a marketing-orientedactivity for several seconds.Spiegel is a "power" hire. Thanks to his six years at Omnicom, where he led the Accuen digital media trading desk,Spiegel knows major marketers, what they want and how they make decisions. As founder of search marketingstartup Resolution Media, which was acquired by Omnicom, Spiegel also understands how start-ups think and makedecisions. Add to that his infatuation with riding the latest trends, which led him to invest in and join the Tap.meboard before being anointed CEO.Just a day into his new role, Spiegel talked to ClickZ about jumping from one of the worlds top ad holding companiesto a tiny two-year-old startup that is hustling to sign up investors, game makers and advertisers.ClickZ: What have you learned from a global agency that you bring to this startup?Matt Spiegel: I understand the expectations and demands of large clients. Ive learned how big business works andhow to impact change across offices. I also know what brands need to make gaming attractive to them. Since myfocus was marketing technology at OMGs Accuen trading desk, Ive had conversations with the key players in thatspace and know what they are doing.The founders here at Tap.me come from the games industry so they are tuned in to the ways that brands canenhance game play rather than downgrade it. My contribution will be to help game developers understand [the kindof] ad tools that marketers need.CZ: What will Tap.me offer beyond what it offers now?MS: I find marketers to be very interested in the idea of the brand value exchange - that consumers get somethingback. Now, via our platform, consumers can choose to go to the menu of branded game enhancements beforestarting their game. They get an enhancement, such as more endurance or speed, and in exchange they see animage selected by the brand. In the future that exchange will become interactive, using social and mobile platforms.Ultimately it will be [fully] controlled by the consumer.CZ: Why leave Omnicom for a start-up?Babelfish Articles Oct 2011 Page 114
  • 115. MS: I enjoy building businesses, even at OMG Digital where I incubated the trading desk. I like the freedom andinnovation of starting something new. By the way, I find that there is a lot of innovation at agencies; they get moregrief than they deserve.CZ: Why this particular start-up?MS: Ive built my career on following the next trend. I worked on display advertising, then email marketing, thensearch and then the ad trading desk. Mobile is skyrocketing and the dominant use is gaming. But the brandadvertising in the space has not evolved yet.So there is a massive opportunity.CZ: With your broad perspective on digital marketing, are you interested in cross-platform integration when it comesto mobile gaming advertising?MS: Yes. I see gaming as content and the ads are part of the [content] experience. The platforms - where and howthe game appear - will vary.The Straight Story on Display Auto-OptimizationJeff Green | October 12, 2011 | 1 commentssponsored by: AdobeOne of the most frequent questions we hear in the demand-side-platform world goes a little something like this:"Where is the easy button?" Or, in other words, "Where do I click to auto-optimize the campaign?"Some DSPs are actively encouraging this mentality, which we call "Black Box Optimization," or, "Dont Worry, TheAlgorithms Will Do All The Work For You."Essentially, some players in the DSP world like to tell customers that theres an easy solution out there that willaddress the huge amounts of data and save us all a bunch of time. It sounds great in a sales pitch, or a PowerPointpresentation.Today, Im going to call "BS" on this concept, and suggest you take a look under the hood before betting youragencys future on complete black box optimization. Heres why:There is no such thing as auto-optimization.The analogy we often use has to do with the stock market. Lets say I logged into my E-Trade account this morningand decided I wasnt happy with my mutual fund returns this year. If I could click a button that said, "Make me a 60percent return on my money in 2011," I would certainly click that button. Then, Id enter the mailing address of mybeach-side cabana, so my trading platform would know where to send my returns.The problem is that auto-optimization doesnt exist in the stock market world any more than it does in the media-buying world. Making consistent returns from the stock market is hard and takes human judgment. The same goesfor buying media.Now, this is not to say that black box components and auto-optimization do not and should not exist. They shouldand they do. Just like high-frequency trading couldnt exist without algorithms, they have their place. However, likein all trading environments, people are pushing buttons, making decisions, and active in the "optimization" process.If there was an easy button, most agencies and media buyers would not have jobs left.Whats really in the black box?All DSPs worth their salt use algorithms. When you test-drive a DSP, or see a demo, you should be asking aboutspecifics. What variables are being considered? How does the DSP know that a variable - lets say contextualcategory - is enough of an independent variable to be used for optimization? What variables are not part of thealgorithm, and why not? Those are all thoughtful, insightful questions, and questions where true partners welcome aconversation.But the reality is that some black box-centric DSPs overdo things on the marketing front.Lets say my company develops a unique approach to let a media buyer bid more or less for media based on theweather in the customers local region. I can guarantee that within a week or two, there are some DSPs out thereBabelfish Articles Oct 2011 Page 115
  • 116. who will start telling their agencies, "Oh, that weather thing? Yeah, thats covered by our black box algorithms," astheir engineers scramble to hack together a weather-based solution. How will you ever know that they arent trulyaccounting for weather?For that matter, in a black box environment, how do you replicate success and fix failure at all?Lets say an agency begins using a DSP with an auto-optimization button. And lets imagine that for some campaigns,the algorithms do their job and the campaign performs well. What does the agency tell the advertiser? When theagency wants to go do another ad buy with an ad network, or with a direct publisher, or a video buy, what has theagency learned? Nothing. The DSP owns all of the insights, and the agency is left high and dry.Or, if the campaign doesnt perform, what can the agency do to fix it? Its a lot like seeing the engine warning lightcome on in a new car. Just like drivers today are powerless to fix a highly sophisticated and computerized enginesystem, without a degree in mathematics, how does a media buyer attempt to fix their campaign?Bottom line: there is no question that people still play a huge role in the media-buying process, and arent in dangerof being replaced by algorithms anytime soon. The best DSPs in the market merge algorithms and automation with ahuman touch. Optimally there is a dialogue between technology and media buyer, where machines focus oncorrelation, and humans operate as judge and jury by focusing on causation and the big decisions.In the future, the best media buyers will be packing more than an easy button.What To Say On LinkedIn When Youve Been Laid OffI’m a Forbes Senior Editor with an entrepreneurial spirit. Having worked as a lawyer, I gravitate towards legalsubjects, especially law as it intersects: personal finance, the workplace and small business. My latest book is EstatePlanning Smarts -- a guide for baby boomers and their parents. This contributor’s page will cover the broad range oftopics that affect boomers as they approach retirement age. That means everything from financial strategies andinvestment scams to working and living better as we get older. But I’m not just talking to readers; I also want toprovide a forum in which they can communicate with each other. Some of my best ideas grow out of theseconversations. If you have story ideas or tips, please e-mail me at: djacobs@forbes.com. You can also follow me onTwitter at: www.twitter.com/djworkingMany people who’ve been laid off feel like crawling in a hole, rather than broadcasting their new job status (or moreaccurately, lack-of job-status) to the world at large. But if you want to find another position, that’s precisely whatyou should do, says Sandra A.VanGilder, an executive coach with her own firm in New York.In the current economy, with so many talented people being let go, there is “absolutely no shame whatsoever” inclearly indicating that you are out of work,” she says. “You exude confidence by not being ashamed that you’rebetween jobs.” LinkedIn, which functions as an electronic resume, is a valuable tool to help you spread the word.Until they are laid off, some folks either don’t know how to use LinkedIn, or have a very skeletal presence on thesite, VanGilder says. Perhaps they think of it as a job search tool (a mistaken assumption) and either aren’t looking ordon’t want their bosses to think they are. Others are too busy.Babelfish Articles Oct 2011 Page 116
  • 117. Still, while three years ago, senior people thought LinkedIn was for lower-level employees, now everybody isconnected and checking each other out. Often, the first thing people do when they are asked to interview someone– or even just network – is to look the person up on LinkedIn.If you suddenly find yourself out of work, develop a “robust, 100% complete LinkedIn profile,” VanGilder advises.This site is so user-friendly that even newbies ought to be able to find their way. Those who need guidance can relyon LinkedIn’s online tutorial or enlist help from an experienced friend or tech-savvy teenager.In creating a new profile or editing your current one, be very public about the fact that you’re looking for newopportunities,” VanGilder says. These are issues she suggests you address as you wind your way though the keysections of the LinkedIn template:Professional HeadlineIn this line, which goes under your name, give a generic description of what you do or a sample job title (forexample, Chief Administrative Officer, Chief Human Resources Officer). Label yourself as what you would like to be,rather than feeling limited by what your last job title was.Current PositionSince you’re now out of work, the “Current” heading should be deleted. Before you do that, though, cut and pasteyour previous company and job title into the “Past” section. Then click “edit” and “delete,” and make the “Current”heading disappear. Don’t be concerned that your job shows an end date. It’s very acceptable to be in between jobs.SummaryIn a couple of short, pithy paragraphs, emphasize your key skills and examples of accomplishments. Conclude with asentence that says “I am currently looking for new opportunities in a couple of specific functions and industries.”When trying to fill positions that are now open, both headhunters and in-house folks with responsibility for filling ajob routinely comb LinkedIn for people who are out of work; it saves them the trouble of having to convincesomeone who is currently employed to switch jobs. So it’s to your benefit to indicate that you’re open to newopportunities.For example, someone who previously worked as a chief administrative officer could write, “Actively pursuing chiefadministrative officer or chief human resources officer role in a dynamic, collaborative environment.” Anexperienced broker looking to reposition his career into investor relations could say something like, “Currentlyseeking to leverage my Equity Floor experience and education into Investor Relations.” (Alternatively, you can put“Actively seeking new opportunities” in your professional headline.)ExperienceMake sure your descriptions of past jobs adequately convey what you did. Standard rules of resume writing applyhere: use active verbs, amply convey your responsibilities, and show results. Since words are scarcer in social media,aim for punchy (think soundbite). Get recommendations from your current or most relevant jobs that reflect varyingperspectives — for example from a manager, a colleague and a client.EducationA perennial question is whether people should include graduation dates, which are a tipoff to their age. VanGilder,who says most of her clients are between their mid-40s and early 60s, discourages them from trying to mask theirage. “It’s just one more data point around which people connect,” she says.How do you know when you’re finished? When you’re in “Edit Profile” mode on LinkedIn, there’s a metric thatshows the percent of profile completeness. It will make suggestions about what you’re missing — whether it’s aphoto or recommendations. Keep revising until you hit the 100% mark. Then proofread vigilantly.Once you have found another position, you’ll no doubt be eager to update your LinkedIn profile to show whereyou’ve landed. But don’t neglect it after that. This social media tool is great for sharing updates about what you aredoing; your entries on the home page appear at the top of your profile. So think of your LinkedIn page as an activesite. You won’t want it to go stagnant.Babelfish Articles Oct 2011 Page 117
  • 118. Do You Know What Good Looks Like?Neil Mason | Contact Neil | Comment | Print versionOne of the toughest aspects about analytics is not getting the right data or even getting the right data right. Its notabout making sense of the numbers or extracting meaningful insights. All of these things can be tough but thetoughest challenge? Getting the data or insight actually used in organisations and getting at the heart of thedecision-making processes. There are two issues here: accountability and relevance. As soon as you want to startmeasuring things, you start to make people accountable and inevitably there can be resistance to that. However,another challenge is having data and metrics that are relevant to what the business or a person is trying to do. Ifmetrics are not relevant, then they wont get used.The main challenge to getting relevant metrics is aligning them as closely as possible to the objectives. If metricsarent aligned to what people and organisation are actually trying to do, then people arent going to take muchnotice of them. All too often metrics are "retro-fitted" into an organization because theyre available rather thanbecause theyre useful. However aligning metrics with objectives is often easier said than done; frequently theproblem lies with the nature of the objectives themselves.Objectives are often like marshmallows: they look good on the outside but they are soft and squidgy on the inside.Marshmallow objectives dont really describe what the end result looks like and do not give an idea of whether theresult is being achieved. An example of a marshmallow objective? For the development of a new checkoutprocesses, such an objective would be "to improve the user experience and build loyalty." However, objectivesshould be as SMART as possible, i.e., specific, measurable, achievable, realistic, and time bound. The key to gettingobjectives as measurable as possible and having relevant metrics is to make them as specific as possible. Youve gotto ask yourself "what does good look like?"Asking yourself what good looks like is a useful way of creating harder and more specific objectives. Its a particularlyuseful technique when there may be no immediate or clear financial outcome. Its easier in my checkout example,above, to make the objective "smarter" by setting specific goals in terms of the increase in orders as a result of theimproved experience. But if youre developing a new section of content or a new site, how do you get smartobjectives?The approach is to keep asking the question "what does good look like?" and trying to describe what will behappening on the site, off the site, or where ever if that objective is being achieved. For example, you may belooking to refresh the content in the help and support section but what will good look like afterwards? Hopefullymore people will be able to find the help and support they need more easily, meaning that they dont need to callthe call center or send in an email. It should also mean that people are also more satisfied with the experience thanthey were before and would be more likely to use the help and support section. By drilling into what good looks like,we can begin to define metrics that can then measure whether these desired outcomes are being achieved or noteither on the site or in the contact center. Hopefully the number of emails and calls for certain types of queries willbe going down and customer satisfaction levels will be going up. Going through this exercise may show that not allthe data that is needed is currently available. Actions may need to be taken to improve the configuration of the webanalytics systems, to introduce a voice of the customer program, or to extend the scope of an existing one. In somecases it may mean getting access to data that sits in another part of the organization such as the contact center.This simple approach to creating objectives that are as specific as possible can be used at all levels and in many waysfrom determining the success of the whole digital channel through to understanding the effectiveness of a particularpiece of product development or a specific campaign. So each time you come to measure something ask yourselves:Why are we doing this? What will good look like? How can we measure success?7 Reasons Why Recruiters Like Facebook More Than LinkedInBabelfish Articles Oct 2011 Page 118
  • 119. Despite the challenges social media presents for human resources professionals, it plays a growing role in talentrecruitment. The big question, though, is where to find talent.While employers continue to use professional networking site LinkedIn for recruiting, especially when hand-pickingfor executive positions, they prefer interacting with students and graduates via Facebook rather than LinkedIn,according to a study by online recruiting research lab Potentialpark.For the study, Potentialpark surveyed more than 30,000 students and graduates worldwide and analyzed the onlinecareer presence of more than 500 companies in the U.S., Europe and Asia. Since the data has not yet been publishedonline, Mashable spoke with Potentialpark about its findings.Within the European survey respondents, 48% said they prefer to connect with recruiters via LinkedIn, while only25% said they prefer connecting via Facebook. When asked to explain their reservations about Facebook, themajority of respondents said Facebook is “not the right place” to interact with employers or that they are“uncomfortable sharing private information.”These findings aren’t shocking, as privacy seems to be a common theme when it comes to employment andFacebook. But these reservations aren’t keeping employers from getting active on Facebook. Potentialpark foundthat more than one-third of the top 100 employers in Europe have a Facebook Page for recruitment purposes, manyof them with more than 1,000 fans.So, why are employers so interested in connecting with recruits on the world’s largest social network if candidatesseem creeped out by Facebooking with recruiters?Potentialpark interviewed HR professionals about their motivation to be active on Facebook and found that they hadmultiple reasons for involvement. Here’s an overview of reasons why recruiters cited a preference for Facebookwhen dealing with young talent:• 1. It’s more engaging. With Facebook, employers can follow a “let them come to us” strategy by setting up abusiness page for recruitment and career purposes. Recruiters noted that the interesting content on pages leads tocomments, discussions and more personal interactions. With LinkedIn, the communication is very much one-way inthe recruiting world, as employers proactively search for candidates and message them.• 2. Facebook is where the action is. Recruiters perceive that few students and recent graduates activelyupdate their LinkedIn profiles, whereas they are quite active on Facebook. Therefore, it just makes sense to connectwith them where they already hang out online.• 3. It’s free. Employers like that Facebook enables them to upload advanced recruitment content, such astestimonials, videos, pictures or a job search — and it’s all free of charge. This broad range of tools enables acompany to showcase itself as an attractive employer.• 4. It’s a bigger network. Facebook offers a larger audience, with more than 800 million active usersworldwide, compared with LinkedIn’s user base of around 120 million members.• 5. It’s more open. Facebook is free for all members and requires no premium accounts to use certainfeatures. As a result, it’s a more open network than LinkedIn.• 6. The Like button. When it comes to career website integration, Facebook takes the cake — Facebook feedsand the Like button are easier to integrate.• 7. It’s better for branding. Recruiters report they tend toward LinkedIn and other business networks fornetworking, screening and recruiting. However, when it comes to employer branding activities and talentcommunication — especially with students, graduates and early career professionals — many prefer Facebook.Having an active presence on Facebook is certainly a great start for employers looking to attract and communicatewith young talent.Do you think Facebook trumps LinkedIn when it comes to interacting with employers? Tell us in the commentsbelow.________________________________________Social Media Job Listings________________________________________Babelfish Articles Oct 2011 Page 119
  • 120. Every week we post a list of social media and web job opportunities. While we publish a huge range of job listings,we’ve selected some of the top social media job opportunities from the past two weeks to get you started. Happyhunting!• Social Media Specialist at The Madison Square Garden Company in New York• Senior Vice President – Digital at Edelman PR in Los Angeles• Senior Social Media Manager at DocuSign in San FranciscoImage courtesy of iStockphoto, ilbusca5 Things to Do Every Day for SuccessBY FC Expert Blogger Dayna SteeleTue Mar 1, 2011This blog is written by a member of our expert blogging community and expresses that experts views alone."You get up at what time?" I hear that a lot along with "you are so lucky." So, Im going to help out here and let youin on the secrets of my success. Well, not all of them but enough to show you the foundation I build on every day. 1. Wake up early. For the next week, get up a half an hour earlier that you normally do--and get going. If you get afew more things done, then get up even earlier the next week. Early in the morning is a great time to get work donebecause most of your associates have not started emailing, tweeting, IMing or posting yet.2. Read the headlines and watch the news. Not only should you know what is going on in the world, you will also bethe first to recognize opportunities (if you followed #1) for you and your business--long before the competition haseven had their first cup of coffee.3. Send something to one person who can hire you or buy your product--something you promised to follow-up with,a quick email with a link to something relevant or a "hey just checking in to see how thing are going" email.4. Touch base with an old friend or associate you havent talked to in ages. Ask how they are, what are they workingon and ask or suggest how you might help. Youll make their day.5. Write a handwritten note to someone. Seriously. It is a lost art and makes quite an impression. There is alwayssomeone you can send a thank you note to--or you arent doing things correctly.A simple yet highly effective list. Try all five every weekday for a month. Then, tell me Im right. If Im wrong, Ill buyyou a cup of coffee. When you finally wake up ... Follow @FastCoLeaders for all of our leadership news, expert bloggers, and book excerpts.Dayna Steele is a serial entrepreneur and author who travels the country creating rock stars with her "Rock StarPrinciples of Success." Follow her on Twitter @daynasteele. You can listen to the podcast version of her FastCompany Leader blogs on iTunes.The Gold in Social Customer ServiceBabelfish Articles Oct 2011 Page 120
  • 121. Talk to anyone in the software industry and in less than 5 minutes you will hear the phrase ‘social media’. Whetherit’s accelerating revenue cycles, improving employee relationships or providing customer service, social media is thenew elixir. Companies are manning Twitter tags and gearing up their Facebook sites in the quest to have betterrelationships with their buyers.Post-purchase buyer engagement is the charter for customer service. It’s a tough job though when B2B Sales closesthe deal handing the customer off to the support organization often with very little information other than whatthey have purchased. The result of this ‘over the wall’ toss is a disruption in the buyer’s experience from what theyhad during the evaluation and purchase stages of their journey.Trust is broken. The buyer feels betrayed. Yet B2B companies baffled by the seemingly unwarranted dissatisfactionimmediately question what’s wrong with the product or customer service. They should, instead, look at the overallexperience the buyer is having. The artificial internal boundaries of Service, Support, Marketing, Sales, Finance, etc.are unnecessary barriers to buyer satisfaction.Harold Goldberg, chief marketing officer of Merced Systems, a sales and service performance management solutionsvendor, sums it up well, “customer service is all about aligning to customer behavior.”A core principle of the Buyers Journey is that everyone is a buyer, all the time. The Buyers Journey is a set oforganizing principles for aligning company functions and roles to enable, engage and establish enduring relationshipswith buyers. “Customer” is an artificial label for counting and segregating buyers that have purchased your product.The notion of “customer lock-in” is, in today’s world, a myth. Customers don’t stop evaluating their purchases ortheir vendors just because they bought. It’s actually the opposite; buyers are always buying even when they’ve justbought.Babelfish Articles Oct 2011 Page 121
  • 122. Companies are realizing buyers are more likely to talk about their buying experience and ask product questions onsocial media. Likewise, they’ll turn to social media first to complain or share a bad experience. Companies that areable to “hear” those comments first and thoughtfully respond, quickly, with facts and actions win loyalty andcredibility. That’s gold. Companies also gain real cost savings in the form of deflected customer calls. According toIBM ‘s Institute for Business Value, Best Buy realized $5Million in annual savings from social customer service. Evenmore gold can be found when Social Media is used to redefine customer service.But before you set out to evaluate the over a hundred social CRM and customer service vendors, the place to start isto understand how social aligns to your buyers’ service expectations. The traditional vendors have stretched thedefinition of social customer service to include chat, co-browsing, SMS, and even video. The “social” customerservice vendors only support a few (like three) social media channels and relatively low volumes of interaction. Fullyautomated social customer service solutions that seamlessly integrate with CRM, contact center, ERP and otherenterprise systems and can support high volumes of social interactions across a broad set of diverse social channelsare hard to find. I don’t think they exist yet. Today, high volume customer service organizations cobble togethermultiple point solutions with a lot of elbow grease. For example, a premier digital media search company uses overten point solutions only to find they still can’t get their arms around it all and respond fast enough.Aligning to buyer expectations on service can only come from “across the board visibility into metrics up and downthe organization”, said Goldberg. His mantra is a simple one, “transparency comes from empowerment whichcomes from information.” How do you get transparency? Empower front line employees with better informationand insights based on analytics and qualitative information such as resolving the customers issue on the first call”Most of the customer experience in Service comes from dealing with an agent or sales associate. They have to get itright in every encounter. Analytics and big data are the core enablers of empowerment. The other enablers arecompany leadership and culture change. “Many companies do not really know what it means to live in a socially-driven world. Their CEOs need to recognize how customers want to be talked to,” shares Goldberg.Whether it is looking at buyer engagement chronologically to gain a holistic view as to why they are contactingcustomer service or understanding customer behavior and determining what the best next steps are, only throughbig data analytics can buyer interactions be analyzed and deciphered. With over 140 big brand customers that havelarge, high volume contact centers that handle hundreds, if not millions, of interactions a year, Merced Systems’ turnanalytics into empowerment by identifying ways that an individual agent or entire center can drive betterperformance. For social customer service, Merced’s analytics and metrics enable companies to understand thecontext of the customer conversation.To leverage social customer service, Goldberg’s advice is that companies need to view buyer engagement holistically.He recommends having a dedicated group of agents to handle social media. Let them experiment and learn becausethe rules of what constitutes world-class social customer service haven’t been written. Figure out the type ofcustomer comments and requests, what type of infrastructure is needed to empower those agents, and how to mostBabelfish Articles Oct 2011 Page 122
  • 123. effectively move public interactions into private channels.To mine the gold of social customer service, deliver a consistent experience across Buyer Enablement andEngagement Stages by tearing down internal boundaries. While a company’s goal maybe to cut costs or reducechurn, social customer service will only be successful if the interactions and motivations are understood from thebuyers’ perspective.Facebook Timeline creates popularity contest for businessThe "Facebook Timeline" feature is expected to roll out this month. Picture: Perth NowFACEBOOK is set to become more of a popularity contest than ever, with customer interaction tipped to become thedriving force for businesses trying to leverage the changing power of the social network.With the “Facebook Timeline” feature expected to roll out this month, posts that don’t get a lot of “likes” orcomments risk being “lost in the dark hole of Facebook” digital strategist Karalee Evans said.To maintain a spot at the top of a user’s Facebook feed a post needs to be deemed “relevant” through userengagement, putting pressure on businesses without giant marketing budgets.“If your community of fans are not interacting with your content on your page it’s not going to get shared on yourfans’ timelines, which means essentially you’re not getting peoples eyeballs on your content and on your business,”Ms Evans said.Start of sidebar. Skip to end of sidebar.End of sidebar. Return to start of sidebar.“(Small businesses) don’t have the budget to produce really high quality videos or to run $25,000 competitions onFacebook.“So for them I think they’ve really got to understand what’s driving their fan community.”Ms Evans, strategist with communications agency Text100, advises small businesses to ask users directly what sort ofcontent they are looking for to help drive engagement.She also issued a warning against businesses using a “personal profile” page rather than Facebook’s “brand page”layout, which has specifically been designed for commercial use. Doing so is in direct violation of Terms of Use andFacebook can shut it down.Brand pages also feature Facebook Insights, a free analytics tool which breaks down the age, sex and locationdemographics, as well as “word of mouth” tool allowing businesses to see what is being said about the brand outsideof its page and target content accordingly.“Now pages have the ability to essentially understand what pieces of content and what topics are really hot for yourbrand,” Ms Evans said.“If (businesses) can understand what’s hitting and staying up the top of that timeline that’s power for a brand.”Read more: http://www.news.com.au/business/your-business/facebook-timeline-turns-the-social-network-into-a-popularity-contest-for-business/story-fn9evb64-1226161213659#ixzz1aJMeioEJBabelfish Articles Oct 2011 Page 123
  • 124. Bob Greenberg, da R/GA, conta como a empresa está adaptando seu modelo de negócio aos novos paradigmas datecnologia"Consultoria é parte fundamental da integração funcional na agência", diz GreenbergCrédito: Christian von AmelinA R/GA teve crescimento de 40% no ano passado e deverá fechar 2011 com alta de25% em suas receitas. Númerosque seriam razão de inveja para qualquer um, especialmente se considerarmos que estamos falando de uma agênciaque tem 1 mil funcionários só em seus escritórios de Nova York.Mas, de acordo com Bob Greenberg, seu CEO, isso não vai impedir a agência de mudar o seu modelo de negócios em2013, repetindo a tradição de fazer alterações do tipo a cada nove anos – a empresa já foi produtora especializadaem efeitos especiais e produtora digital no passado.Essa mudança tem a ver com uma nova realidade à qual as marcas precisam se adequar. Em outras palavras: elasprecisam ir além do modelo tradicional de lançar um produto e anuncia-lo na mídia. “As marcas hoje precisam criarecossistemas de valores integrando seus produtos com alguns serviços adicionais. Isso é chamado de integraçãofuncional”, afirma. Segundo ele, o serviço tradicional de agência de publicidade com a velha fórmula se tornoucommodity.Greenberg afirmou que Apple é o melhor exemplo de marca que entendeu essa necessidade, “apesar do fracasso dolançamento do IPhone 4S”. “Era uma empresa de computadores pessoais em seu começo. O brilhantismo de SteveJobs foi criar a integração funcional, com lançamentos sucessivos de sistemas operacionais, do iTunes, iPod, iPhone,reinvenção do mercado de música, iPad, aplicativos e agora o iCloud. É um ecossistema de valores para osconsumidores”, diz, elogiando ainda Google e Amazon.Da seara da R/GA, Greenberg mostrou alguns projetos para Nike, entre eles o Nike + GPS, um aplicativo que permitemedir a performance atlética de uma corrida e dividir com os amigos em redes sociais. Isso, com qualidade gráfica. Oaplicativo foi o segundo melhor do iTunes, atrás apenas de Angry Birds. “A Nike investe muito na criação deste tipode ecossistema e lançaremos em breve mais coisas interessantes”, revela.Do lado das agências, a mudança parte pela readequação de alguns processos internos. “Antes o trabalho eraamarrado a formatos padrões. Agora, as coisas estão em fluxo”, afirma. A agência assume novos papeis em suaopinião.Uma delas será a consultoria, para ajudar o cliente a em seus negócios. “É uma das partes mais importantes daintegração funcional”, aposta. Outra tendência é a globalização das agências, já que os próprios clientes se tornaramglobais. Sem contar a questão da diversidade de talentos. “Não conseguimos mais ter 1 mil pessoas especializadasem digital em Nova York. Por isso, é importante conseguir pessoas em outros lugares. Inclusive com melhoresestrutura de custos, como em Buenos Aires”, aponta.NOW / Whats the current consumer or technological trend? How are marketers exploiting it? What does bestpractice look like?NEXT / Wheres it going? What possible evolutions should you know about? How will your brand keep up?WHY / What does it mean, and what are the implications for strategy, commerce and community?Babelfish Articles Oct 2011 Page 124
  • 125. The weekly CX Academy Briefing brings your the latest ideas on customer experience, design and innovation. Thisweek cover the following topics:How Google and Facebook might lose their edge by selling out their users09 Oct 2011 02:40 pm | Bernhard SchindlholzerI am not a big fan of doom saying and predicting the demise of two of the most important companies in the ITindustry in the last decade. Nevertheless in recent months some very interesting events have happened at Googleand Facebook.These events are worth a closer look to better understand current industry dynamics and the challenge of balancingthe needs of your users with those of paying customers.What is Google’s and Facebook’s business?Google and Facebook are two companies that offer free services ranging from search, email, social networking andothers. Both make their money through advertising which brings us to the core concept of the business model ofthese companies: If users get everything for free, Google and Facebook need to make money another way by gettingto know their users and selling that information through advertising channels to other companies.Are these companies in the business of “organizing the world’s information” (Google) or ” to give people the powerto share and make the world more open and connected” (Facebook)? Or are they in the business of selling access tousers for advertisers?Now I don’t want to criticize this business model because obviously it is working from an economic perspective andusers can have value by very targeted advertisements. Yet evolving such a business model is a very delicateendeavor. There is a fine line between balancing the need to increase user engagement through remarkable userexperiences and the need to increase “access to and information about users” for advertisers.One indicator that this balance has been slightly lost is how the communication of Google and Facebook has changedin recent months. It has changed in a way where both companies are disguising their intentions to collect moreinformation about their users with new features and then arguing their way around it. Let’s look at two examples:Google Plus: We need your real nameWhy does Google want to you to create a profile on their social network with your real name? Because thisdramatically increases the value of their platform to advertisers. Once you sign up to Google Plus and agree thatGoogle can use your personal information for advertising, users give permission to be targeted by name. It isprobably just a matter of time until you can buy Google Adwords to target specific people in specific circles ornetwork.By hiding this behind a social network and combining it with Eric Schmidt’s famous statement of “Privacy is not sucha big deal because if you have nothing to hide, you have nothing to be afraid of” shows that Google is pushing hardto move its advertising platform to the next level.Facebook Like Buttons: We know everything about youFacebook is also trying to create better profiles about its users with Mark Zuckerberg advocating that people shouldstart sharing more and more of their life. To support this, people started adding Facebook Like buttons added to ahomepage, Facebook is able to track your behavior online – even without you clicking on the button. This createssophisticated knowledge about its users and what they are looking at. Once again, a brilliant business move thatdisguises behavior tracking through a “Like Button”. By the way, Google is doing the same through its free GoogleAnalytics platform that is installed on the majority of websites to track visitor statistics.The challenge when users and customers are completely differentIn both companies and in the underlying business model, the users are different from the customers. While theinitial success of these companies has been driven by a focus on the end user and the user experience, it seems thatBabelfish Articles Oct 2011 Page 125
  • 126. in order to achieve further economic success, both companies focus primarily now on their paying customers thanon their users.It is a very crucial moment in the growth of both companies and also a very interesting case study for customerexperience practitioners. We can observe at the time it is happening whether Google and Facebook are able tobalance this trade-off or if they drift off in one direction. Either development will be interesting to observe.Audience Buying 101Eugene Becker | October 3, 2011sponsored by: OpenXIn a John Hughes movie, audience buying would be that mysterious new kid who transfers into the local high schooland has everyone talking. Some think hes going to save the football team. Others say hes done time in juvie. Butpretty much everyone has an opinion - even if theyre hazy on the total picture.Its a familiar spot for those of us in the audience buying biz. And while the technologies and strategy are newer, thepractice itself neednt be all that mysterious.On a basic level, audience buying allows brands to reach consumers directly, rather than - as is the case with contentbuys and contextual targeting alone - by proxy. Lets unpack this statement.Lets pretend I run the marketing department at a major life insurance company. In a traditional content buy, if Iwant to market my life insurance product to 40-year-old married men, I place my ads in places where large numbersof them have been proven to congregate. Say the business section of a major newspaper site. With contextualtargeting, my ads will pop up when someone is, say, reading an article about life insurance. In both of thesecircumstances, Im trying to reach my 40-year-old married target based on what site theyre on or what contenttheyre viewing.What audience buying allows said life insurance company to do is to deliver advertising directly to these 40-year-oldmarried targets, wherever they happen to be and whatever they happen to be doing. They could be watching a clipof Maria Bartiromo, reading an article about A-Rods performance in last nights Yankees game, checking movietimes via an iPhone or Android app, or performing any number of daily activities online or on a digital device. Whatsite theyre on, what app theyre using, or what content theyre viewing is immaterial - the ad is delivered basedupon who they are rather than on what they happen to be doing at any particular moment.The great thing about the audience-buying model is that it allows brands to maximize the efficiency of theircampaigns by mitigating some of the waste thats inherently built into content and contextual buys. After all, noteveryone on the newspapers business page is a married 40-year-old male, just as not everyone reading about lifeinsurance is necessarily a potential customer.So thats the theory of audience buying. In practice, the application can be widely divergent. Broadly speaking,success or failure in the audience-buying game depends heavily upon three key factors, which well examine in turn.1. The breadth and quality of the audience profiles database. Underpinning any audience-buying solution is itsdatabase of audience profiles, which should be powered by multiple data sources including both first and third-partysources. More profiles allow for more precise targeting. So instead of targeting 40-year-old married men, we can, forexample, target 40-year-old married men who are in-market shoppers for life insurance or have started to do lifeinsurance research on third-party sites. Of course, simply having a large number of audience profiles is only half theequation. To be useful, the profiles must also be rigorously accurate and up-to-date, dynamically updating based onthe aggregation of secure, non-personally identifiable audience information across multiple online and offlinechannels.2. The reach of the audience-buying network. Assuming a quality database of audience profiles, the next factorto consider is the reach and scalability of the audience-buying platform. That is, in the universe of places where adsappear - display advertising, mobile ads, video ads, and paid social media - how many (on a global basis) can beBabelfish Articles Oct 2011 Page 126
  • 127. served by the solution in question. Without a critical mass of touch points, audience buying loses much of itseffectiveness no matter how good the profiles database.3. Solid strategy and experienced approach. With points one and two satisfied, the last piece of the puzzle isthe human element. Specifically, the expertise of the campaign manager choosing which audience profiles to targetand how to best action that targeting. For example, maybe the life insurance ads will be most successful with 40-year-old married men who went to a public university. Or are pragmatists. Or own an SUV. Based on what theadvertiser is trying to sell, the campaign manager must be able to identify the most relevant profiles to target andthen, when the campaign is running, make adjustments on the fly based upon incoming data.Brands arent the only winners in the audience-buying paradigm. Consumers benefit by seeing more ads that areactually relevant to them. And publishers gain a valuable new sales channel, allowing them to better maximize theirinventory.So should you jettison your existing media strategy and throw all your chips on audience buying? Not necessarily. Forexample, most advertisers running major audience-buying campaigns are still utilizing contextual and content buyswithin their overall marketing programs. What has changed is the spending balance as these brands shift more andmore of their marketing dollars into the audience-buying arena to take advantage of the greater efficiencies andhigher returns that audience buying delivers.For brands, the question becomes finding the particular new equilibrium that allows them to optimize their results.Finding a balance? Making room for the newcomer? As scholars of the John Hughes oeuvre know, its exactly theseelements that lead to a happy ending.Talk Is Cheap: Facebook Gives Brands a New Rainbow to ChaseGary Stein | Contact Gary | Comment | Print versionAs I understand it, human children learn to count at or near the age of two (not sure when non-human children startto count; will look into that for a future column).The interesting thing is that they tend to count only to two for a number of months. Its not so much that they dontknow the number three, but rather that they arent instead of counting, they are simply distinguishing between oneobject and many objects. "Two" doesnt mean two nearly as it just means "more than one." This is just a transitionalphase and they quickly start to count everything. Most kids grow out of this phase and simply count the things thatare important to them.Some, however, become interactive marketing professionals and never, ever get tired of counting anything andeverything that could possibly be counted no matter what that number could mean.You know who you are. You are the ones who are thrilled by Facebooks recent announcement of a whole new cropof data becoming available through its ad platform and insights tool.People Are Talking. Is Anyone Listening?Facebooks new tool exposes a whole lot of new data points to marketers using the platform for marketing andadvertising. Among the new data points, the one getting the most interest is the awkwardly-worded "People Talkingabout This" (PTaT?). This is a raw number of people who have mentioned a particular brand either in a post, as partof an RSVP, in a photo tag, or any other way on the service. You can imagine the sorts of things that are in this broadnet: "Ready to kill someone waiting for [SERVICE PROVIDER] to show up for the appointment"; "Heres that photo ofBob heaving into his [BRAND X] toilet. Man that was a wild party."Anyway.Now, I am always willing to hear any bright ideas. It is entirely likely that someone out there will see the PTaT scoreas the most essential number being generated by a campaign or as the missing piece that enables her to finallyunderstand the value being generated. But, mostly, I imagine it becoming just one more number, plucked randomlyBabelfish Articles Oct 2011 Page 127
  • 128. from the wild, reported only because it is able to be counted, and provided as some proof that advertising dollarsare being effective.I dont mean to say that your PTaT score is completely meaningless. I also am not going to go on another rant whereI tell you that you need to stay focused on your real goals of driving business (although you should). No, instead Imgoing to chastise Facebook for putting this number in such a prominent position.If you look again at the screen shot on the ClickZ article, youll see that PTaT (love calling it this) is near the center ofthe screen and in a pretty big font. That clearly is the marquee spot in the interface. Plus, Facebook is giving this datapoint as a raw number - an actual count of how many people are talking about you. This is the brand narcissistsworst case scenario. Who will not fixate on this as a key element of success on Facebook? After all, the primaryreason that people use Facebook (and other social channels) is that they want people to talk about their brand, soFacebook is just giving people what they want.But why do we want this? Why is it good that people are talking about a brand? I know the standard responses:"Better they are talking about it than not talking about it"; and "Lots of talk means lots of awareness and thereforelots of sales."Im actually OK with the first response. But Ive always found the second one troubling. The idea that buzz leads tosales seems like a tenuous link. The reasons that Ive heard that this works tend to sound like voodoo to me -something in the air will cause people to make a decision. But people dont operate like that. People are mechanicaland, despite the best intentions of pundits, ideas dont operate exactly like viruses. You have a decision to adopt anidea and believe it is true (and take an action). A smart person in a room full of ideas is not the same as a healthyperson in a room full of germs.Which is why this number and its prominence is worrisome. Please dont think that you simply need to fill up the airwith lots of people talking about your brand to generate value. You need to get lots of people believing in your brandand feeling emotions because of your brand. Dont settle just for talking.You know what you can do? Simply remember the old catch phrase "Talk is cheap" and budget appropriately.Novelty Wears Thin For Mobile Ads, Creativity Crucial by Mark Walsh, Yesterday, 1:42 PMResearch in recent years has shown that performance rates for mobile advertising are often higher than for onlineadvertising. Millward Brown unit Dynamic Logic, for instance, has found mobile campaigns increase ad awareness22.5% and purchase intent 5.7% compared to 4.3% and 1.3% for online campaigns. The novelty of mobile ads hasoften been cited as one of the main factors contributing to their relative advantage over traditional Web ads.But a new report from Dynamic Logic warns that as mobile matures, the novelty is wearing off, making creativitymore crucial than ever in the emerging medium. "Today, poor creative can even have a negative impact on a brand,compared to the past three years when creative quality did not matter as much within mobile display advertising,"said Ali Rana, senior vice president and head of Dynamic Logics Emerging Media Lab.What are the biggest mistakes advertisers are making in mobile? The study highlighted three:*Repurposing online creative by cropping it for a mobile environment*Showing ones brand only through a product shot*Cluttering ads with too much text or too many logosBased on its findings showing the importance of strong mobile creative, Dynamic Logic said it is developing a newcopy-testing system specifically for mobile display advertising. The new testing solution to be released later this yearpromises to help agencies and advertisers optimize mobile creative to make the most of their ad buys.The firms latest research also identified three key elements that drive a successful mobile campaign:*Left-side brand placement is generally most effective and has a strong impact on advertising recall*Clear and persistent branding is important for brand awareness*A strong call-to-action encourages interactivity and engagement to help drive purchase intentBabelfish Articles Oct 2011 Page 128
  • 129. In addition to novelty, Dynamic Logic said mobile ads have also benefited from the larger proportion of the screendevoted to advertising compared to online. Furthermore, the copy and content are typically more focused due tosize and technology constraints. And as consumers become more accepting of mobile ads, the medium offers bettertargeting than most media.The report also suggested mobile works well at communicating messages for "high-involvement" categories, likefinancial services. Even so, some of the best campaigns have come in low-involvement categories such as CPG,where ads are more effective in moving persuasion metrics, like favorability and purchase intent.The question is whether marketers are willing to spend more to develop specialized ad creative for mobile. At theMobile Media Summit in New York Wednesday, Eric Bader, president and chief strategy officer at Initiative, pointedout that mobile accounted for just 0.3% of ad spending in 2010.He suggested that taking dollars from what he called "underperforming channels" such as direct mail, e-mail andsearch could increase mobile budgets.At the same time, Bader advised that mobile should be used to extend exposure from traditional media including TV,radio, print and out-of-home advertising. "The success of mobile will start when we stop segregating it as a separatemedium," he said.Aegis Morris: Media Change Is Accelerating, Ad Industry Is Racing To Keep Up by Steve McClellan, Monday,October 3, 2011, 9:53 PMItunes, smartphones, YouTube, Twitter and Facebook are just some of the media innovations that have appeared inthe last decade. But fasten your seat belts -- theres a lot more coming. Nigel Morris, North American CEO of AegisMedia, told a crowd at the Reuters Roundtable Advertising Week session Monday there will be more changeaffecting the media landscape in the next three years than there was in the last five to ten.In a wide-ranging discussion about media and where its headed, Morris acknowledged that change is occurring atsuch a rapid clip that advertisers and agencies are sometimes "flying blind" as they make choices about which mediato buy.The good news for marketers, said Morris, is that techniques for measuring ROI "are getting closer to the point ofthe transaction with the consumer."When the subject turned to the role of TV, divergent views emerged. Andrew Capone, SVP, marketing and businessdevelopment, NCC Media, the cable ad sales rep firm, said TV would continue to dominate -- basically becausepeople like watching well-produced, high-quality fare. And thats expensive. "Somebodys got to pay for it," he said,asserting that the ad-supported model will continue to be the most efficient way of doing so.Despite what he called "the VC [venture capital] frenzy and disruptive technology looking for a seat at the tablewhere the money is," TV will remain the big driver, Capone insisted. "Its fun to build" in the new media world, saidCapone. "Its not easy to maintain."But Bob Bowman, president, Major League Baseball Advanced Media, disagreed. "The more ubiquitous device is theone in your hand right now," he said, referring to cell phones. Thats the device that people have with them 24 hoursa day, he said -- and its one that is "far more loved by most people than TV."Frank Holland, EVP, advertising and online, Microsoft, envisions "a multiple device world." TV, he said, "doesnt havethe strength" to deliver resonating messages across all video platforms.Lisa McCarthy, EVP, client development group, Univision, said that many of the Hispanic networks viewers --particularly recent immigrants -- often call the network or one of its affiliated stations, asking for specific adviceabout what medical or other services are available in a particular community. "Were trying to figure out how tocapitalize on that," she said, suggesting that digital extensions to Univisions core business might be the solution.Lessons in Reality TV Product PlacementTessa Wegert | Contact Tessa | Comment | Print versionBabelfish Articles Oct 2011 Page 129
  • 130. Tune in to just about any reality TV series and youll get something more than your fix of fun. Youll get productplacement. I guarantee it. This television genre has embraced and perfected the integration of products into shows.Regardless of how you feel about the concept, you have to admit there are some pretty creative executions outthere. No longer are products simply slipped into the backdrop - theyre now featured as part of the content itself.Remember that ubiquitous Coca-Cola cup next to the "American Idol" judges? To date, the beverage brand has runseveral contests inviting viewers to design their own version of the "Judges Cup" for a chance to have it appear onthe show.From a marketing perspective, there are few better ways to promote ones product than by showcasing it in acontext that demonstrates its functionality and value. This is particularly true when a show and a brand share acommon target audience, and the show brings with it an existing following and loyal fan base. A brand thats equallylikely to appeal to that audience is well-positioned to affect it in a meaningful way.A recent study on product placement in reality TV that was conducted in Australia found it can indeed have aprofound effect on consumers, and on their purchasing habits in particular. According to the Reality TV InsightsSurvey, while 66 percent of consumers think there is too much product placement in reality TV shows, 94 percentclaim their purchasing behaviors have been influenced by what theyve seen. And 60 percent of consumers havepurchased a product post-viewing.What happens, though, when those consumers see product placements translated for the web? Brands may be ableto influence viewers through the small screen but can the image they create there sustain itself online? Is thereenough of a payoff for those who follow a brand from a show to its site? And does its offline integration into realityTV correlate with whats being expressed online?This is one dilemma that isnt entirely in the marketers hands. What happens on a shows related site is the productof publisher negotiations, inventory availability, creative availability, and countless other factors. You may not haveas much control over your cross-media product placement campaign as you would like, but that doesnt mean youcant approach it with a savvy strategy. And it certainly doesnt mean that you wont achieve your goals."Project Runway," Intel, and HP "Make it Work"Contestants on Lifetimes "Project Runway" have been asked to make outfits out of materials purchased only in a petstore, and yet their design room couldnt be more high tech. For three years now, the series has maintained apartnership with Intel and HP, with the two brands supplying technology thats intended to facilitate the designprocess and inspire creativity. For instance, earlier this season the shows designers were required to use it for achallenge in which they had to create their own textile print as well as film and produce a video to accompany theresultant fashion show.On the program, the products play a significant role. Online, the two brands take things a step further by continuingto educate consumers about the products while also encouraging sales transactions. The "Rule the RunwaySweepstakes" may live on MyLifetime.com, but the page looks more like it belongs on one of the brands own sites.Babelfish Articles Oct 2011 Page 130
  • 131. It includes product-specific banners and an entire gallery of HP products that link directly to the HP online store.Lesson: Take advantage of the consumers arrival online by urging her further down the purchasing funnel."The Amazing Race," Travelocity, and ChocolateTravelocity was well represented in the spring season of "The Amazing Race" with the usual trip prizes andadvertising, but nothing about the partnership was more memorable to consumers than the brands mascot…whenit was made entirely out of chocolate, that is. According to Nielsen, which ranks the effect of TV product placementon brand recall, the episode in which contestants had to create a chocolate Travelocity Gnome was named the mostrecalled reality TV in-program placement of its month.Its impossible to say how big a part the chocolate played in resonating with consumers, but certainly the fact thatthe gnome itself was prominently featured had major impact; after all, second on the list of placements with thebest recall was Sprints feature on "Survivor: Redemption Island," another patent example of a hands-on productintegration. Lesson: It pays to be blatant. Consumers may say they prefer a subtle product placement, but deliver theimage of your brand loud and clear and its more likely to stick.MaxiMídia 2011:Bob Greenberg defende tecnologia e diversidadeSócio-fundador da R/GA apresenta modelo que fez de sua agência referência para o futuro da propagandaJosé Saad Neto| ››05 de Outubro de 2011 • 13:04Bob Greenberg, sócio-fundador da R/GA Crédito: Christian Von AmelinUma empresa que nasceu como produtora de filmes e hoje é referência em agência de comunicação integrada. Essaé a R/GA, fundada na década de 60 por Bob Greenberg, que falou a um auditório lotado nesta quarta-feira, 6, noMaxiMídia, em São Paulo. Ele defendeu que a tecnologia mudou radicalmente o relacionamento entre consumidorese marcas e pontuou que a diversidade de talentos, associada a uma constante reinvenção do modelo de negócio, é oque faz o sucesso da empresa. “Para traçar nosso crescimento, avaliamos o passado e ousamos para um futuro quecertamente será cada vez mais pautado pela integração”, disse.Greenberg apresentou a evolução do matriz de serviços da R/GA, que foi incorporando áreas e ecossistemas aolongo das últimas décadas. “Nos últimos nove anos, tudo que incorporamos teve como objetivo criar uma agênciaessencialmente digital, preparada para atender clientes globais, que mudaram nos últimos tempos”, explicou.Para ele, a criação de novos departamentos e a oferta de serviços e produtos aos clientes, mesmo em períodos decrise, fez com que a R/GA crescesse 40% no ano passado. “Como os clientes são globais, nosso olhar se volta paratodos os mercados onde eles atuam, e não só o local”, explicou.Durante a palestra, Bob Greenberg apresentou cases como os da Coca-Cola, uma indústria de bebidas que hoje éuma das marcas mais poderosas do mundo. Sobre a Apple, ele destacou o “brilhantismo” de Steve Jobs naantecipação da multifuncionalidade das telas. Amazon, BMW e Nike, com o case Plus, também receberam destaque.Greenberg finalizou dizendo que a integração de processos e pessoas, entendimento de mercados locais ealinhamento às expetativas dos clientes pautarão os próximos anos na R/GA.A matéria de capa da ProXXIma de outubro destaca o perfil de Bob Greenberg e da R/GA. Baixe aqui gratuitamentena App Store e leia no iPad.Jimmy Smith Launches IPG Transmedia Co-venture Amusement ParkMulti-awarded creatives new shop boasts nontraditional focus, ideas-focused revenue model and no assholespolicyBy: Ann-Christine Diaz, Published: Oct 04, 2011E-mail | Print |Babelfish Articles Oct 2011 Page 131
  • 132. Amusement Park Entertainment Chairman/CEO/CCO Jimmy SmithJimmy Smith, the veteran creative behind high profile branded entertainment efforts like Gatorades Replay andNike Battlegrounds, has departed TBWA/Chiat/Day, L.A. to launch Amusement Park Entertainment, a co-venturewith IPG that will focus on transmedia storytelling and branded content. Outside of its non-traditional focus, theL.A.-based shop also boasts an unconventional revenue model that places a premium on what agencies are bestknown for--ideas. "The philosophy behind the company is simple," Smith says. "Ideas are the Holy Grail; thereforewe should value them and their creation highly."Smith has already made a name for himself steering successful branded entertainment properties. He most recentlyserved at TBWA/Chiat/Day, L.A., where he was GCD on Gatorade and oversaw the highly decorated branded contentReplay series, which for three seasons has given sports teams the chance to address unrequited triumphs from theirathletic past--and which, Smith says, is on its way to becoming a feature produced by Sony. As an ECD at BBDO heworked on the Instant Def campaign for Snickers featuring the Black Eyed Peas, at Wieden + Kennedy, he was writeron Nikes Battlegrounds, the documentary-turned-MTV series that chronicled street b-ball champions in New York,and on the Paul Hunter-directed spot-turned pop culture phenomenon Nike "Freestyle." Outside of the ad world,Smith has applied his talents to books-he wrote "Soul of the Game" and Graphic Novel "The Truth"; and was CD onEA Sports titles NBA Street 2 and 3.At Amusement Park, Smith will get a chance to flex his entire skillset under the multi-pronged title ofChairman/CEO/CCO. The agencys management team also includes Director of Digital, Film and Music Quincy QD3Jones III, founder of urban digital entertainment shop QD3-who himself has a number of pop culture and transmediaaccomplishments under his belt. Musically speaking, at the age of 16 Jones produced his first gold record for LL CoolJ, he scored The Hughes Brothers Menace to Society , composed the theme song for The Fresh Prince of Bel-Air andhas sold over 40 million records out of QD3. On the production tip, he served as executive producer on TV shows anddocumentaries feature hip hop and rap artists like 50 Cent, Jay-Z, Kanye West and Lil Wayne. Outside of the hip hopworld, QD3 has produced skateboard documentaries on skate icons like Christian Hosoi, P-Rod, Tony Hawk and TerryKennedy. Roberto Grande, former Head of U.S. Operations at mobile marketing company Motopia will serve asDirector of Mobile and will be key to further developing the companys mobile offerings and Bobby Ware, previouslyCommissioner of Transportation for Chicago under Mayor Richard Daley (and Smiths college roommate at MichiganState) will serve as Director of Finance.Amusement Park Entertainment and IPG are not disclosing ownership terms of the co-venture deal. Smith says thepartnership came about through suggestions from friends. "I was talking to Jon Kamen, the Chairman of@radical.media, and he said I should talk to Michael. So I did. And to my pleasant surprise, that cat got the conceptin the blink of an eye. Then Jon told me to talk to Bob Greenberg, founder of R/GA, about IPG. Bob loves Michael andI could feel it from the way he talked about IPG." One of Smiths clients then spoke with Roth and told Smith "It waslike talking to your granddad," Smith says. "That was it. I was done! My granddad was off the skillet. Very protectiveand caring. He was wise as I dont know what and he was a bad mofo. You didnt mess with him in Mississippi. Ifigured if Jon and Bob vouched for Michael and IPG, and if my future client was digging him big time, I wasnt goingto be the dummy who didnt see the light." Moreover, "from the very first day I spoke to Michael, the deal wediscussed hasnt changed. Hes old school. A deals a deal. Everybody who knows me, knows thats how I roll. Fromwhat Michael has shown me, thats how he rolls."Smith says he chose the name "Amusement Park Entertainment" for its connotations of fun and possibility. "Ourwork will be entertaining and fun. Also, amusement parks are effective at what they do. We will be effective as acompany, too. Amusement parks have a little bit of everything and are transmedia companies themselves. Finally,and most importantly, theyre places where kids can dream and believe that anything is possible. Im a big kid, IBabelfish Articles Oct 2011 Page 132
  • 133. dream big and I do believe that all things are possible. I want everyone who interacts with our company--in whatevercapacity--to believe that this is the place where your wildest dreams can come true."Evolutionary ModelIt doesnt hurt that the shops business model itself is shaped to encourage that thinking. One of the shops primaryaims, Smith says, will be to fix the "broken model" of advertising. The agency will either wholly own or co-own itsnon-traditional ideas--anything that falls outside the scope of traditional advertising. It will also have at least partialownership in anything it creates--never selling 100% equity in any of its ideas. "Sometimes well create for ourclients, and sometimes well create for ourselves, but well always co-own," he says.Perhaps even more significant is that this thinking filters down to the shops talent and collaborators. Says Smith, itsonly in the best interests of the company that idea creators-whether they work at Amusement Park or not-- co-owna percentage of the ideas that they create, and profit from their ideas. If they work at Amusement Park--theyll getthis percentage on top of their salaries. I dont know of any companies that offer that." Such a model, he believes,will help to attract--and retain--talent from a broad swath of creative spheres-from art, technology, videogamesector and marketing."And unlike a standard entertainment company, when we create content for a brand, the content and idea willemanate from the brand," says Smith. "It wont be product placement. Screw that! Our ideas for brands wont beable to exist unless that brand exists--you wont be able to just simply slap another brand name on the content idea.Our ideas will be custom created for specific brands. We actually care about the brands we develop for. This isntabout give us $40 million so we can make something that can exist whether your brand is in it or not. We want tocreate content that helps brands accomplish their goals, and thats to sell product and/or services."No Assholes AllowedAs for the sort of culture he hopes to create at Amusement Park, Smith believes the agency "will survive and thrivebecause of its no borders policy. Within the walls of Amusement Park will be people of every race, color and creed.Ive always said that if the people of Babel could build a structure to Heaven, then surely people from all over cancome together to build the freshest, sickest, dopest, most off the skillet content and innovation transmedia companyin the world." Smith, who is speaking today at the One Clubs Where Are All the Black People seminar on diversity inthe ad industry, believes "the state of diversity in advertising sucks. Its horrible. Im intent on making AmusementPark a beacon for how things should be. But if more entertainment studios and ad agencies dont take our lead, thebetter it will be for Amusement Park because well have the dopest talent, which will lead to groundbreaking ideas,which will lead to the smartest clients, which will lead to more money."Smith also says that the company will also have a very strict hiring policy made clear with a simple sign hanging at itsentrance that reads "No Assholes Allowed.""Im not joking," he says. "If you are, youll find it hard to get into Amusement Park. And if you manage to slip inunder the radar, you wont last. If youre into politics, fucking go someplace else. Because I personally promise not tosuffer political game playing fools. And I wont allow my staff, those who just want to come into the office and createBabelfish Articles Oct 2011 Page 133
  • 134. dope work, suffer fools, either. I hated it where I worked in the past and I didnt understand why some places haddeveloped into such b.s. nests. So if youre a nincompoop who likes to lead people to the Nincompoop Forest,beware. But if you want to work at Amusement Park, be prepared to leave your preconceived notions thateveryplace has politics at home. And be prepared to work your ass off, plus have a funky good time."2 Comments: By LowellT October 4th, 2011 05:40:45 pm"Where Are All the Black People seminar on diversity in the ad industry, believes "the state of diversity in advertisingsucks. Its horrible. Im intent on making Amusement Park a beacon for how things should be. But if moreentertainment studios and ad agencies dont take our lead, the better it will be for Amusement Park because wellhave the dopest talent, which will lead to groundbreaking ideas, which will lead to the smartest clients, which willlead to more money."Tell it Jimmy!http://buythecover.comBy artista October 4th, 2011 06:26:00 pmI wish I lived in LA where I could try to get into "the Amusement Park." I met you years ago at an informalpresentation you gave about advertising...the physical room couldnt contain you then and the old notion ofadvertising is definitely not containing you now. Godspeed and many continued good wishes to you and all involved.You must be loggedThis Is Your Brain on MarketingUp close and personal with fMRI By Chip BayersThe future of market research has no room for bad teeth. Or Englishmen.It’s 8:15 p.m. at the Rolling Oaks Surgical Center in Thousand Oaks, Calif., deep in the Valley north of Los Angeles. I’mwith a group of advertising executives, a neuroscience professor, and a laboratory technician, gathered around MRIcomputer equipment and monitors. We’re here at night because MRI centers can run almost around the clock, withBabelfish Articles Oct 2011 Page 134
  • 135. the bulk of that time used by physicians ordering tests on their patients. A young girl in a hospital gown had justconcluded a test even as our group was preparing to begin its work.Beyond us, in a room observable through a thick glass window, is Bill Rosenthal, the COO of Los Angeles-based adagency Ignited, lying on his back inside the giant donut ring of a functional magnetic resonance imaging machine.(fMRI is technology that can create a picture of brain activity by increasing blood oxygenation.)That was supposed to be me in Rosenthal’s place as the lab rat, but it turns out to be very hard to get selected as asubject of fMRI research—a technology behind advertising’s latest “it” trend, neuromarketing. Rosenthal had beenrecruited as a volunteer by account executives from Ignited, an investor in Illuminare Labs, the startupneuromarketing research firm conducting the fMRI test—which Ignited plans to partner with on future clientresearch. He took my place because of the orthodontic wire behind my lower front teeth (the last vestige of a boutwith adult braces), which disqualified me from being exposed to the power of the Philips imaging machine’smagnets.Also nixed was my Yorkshire-born colleague, Stevan Keane, whose ignorance of U.S. car models meant he didn’t passa prescreening questionnaire needed to qualify him as an American male planning a car purchase in the next fewmonths. (fMRI surveys are generally restricted to a small pool, so one outlier who doesn’t fit a target customerprofile could unfairly skew results.)Even out here beyond the glass, the throbbing hum of the equipment driving the fMRI machine’s massive magnets isimpressively loud. Rosenthal wears headphones, his face hidden behind a pair of image-projecting goggles. On oneof the screens we can see what he’s watching—a video presentation that begins with logos for Japanese cars,followed by alternate views of different models of those cars, followed by commercials for those same models. Restperiods are built into each sequence; between sets of logos, for example, his screen goes black to allow his brain toquiet.On the technician’s monitor is a grid of sliced views of the brain, horizontal cuts of successive layers of the organ,periodically speckled with colored pixels—a real-time view of Rosenthal’s brain lighting up and quieting as extrablood flows to the cognitive areas reacting when they see an image, then flows away during each rest.Babelfish Articles Oct 2011 Page 135
  • 136. The test isn’t for a real product. Instead, it’s part of the proof-of-concept product development (basically, a testing oftools) for Illuminare, which hired its first CEO three months ago, and whose founders and advisors include renownedneuroscientists and radiologists from UCLA’s Geffen School of Medicine.Illuminare is banking that its experts and proprietary analytical tools will help establish it at the forefront of theworld of commercial neuroscience research.It’s a world still in its nascent stage, despite all the ink spilled on it and the fact that traditional research firms arescooping up some of the companies in the category—like Berkeley, Calif.-based NeuroFocus, purchased by Nielsen inMay 2011.Clients such as Procter & Gamble, McDonald’s, Viacom, L’Oréal, and Starcom MediaVest have all reportedly usedresearch from neuromarketers. Marketing guru Martin Lindstrom highlighted the category in his 2009 New YorkTimes best-seller buy•ology, and filmmaker Morgan Spurlock climbed inside an fMRI in his documentary POMWonderful: The Greatest Movie Ever Sold.In fact, despite numerous articles positioning neuroscience as the savior of market research—and the death oftraditional research—there’s no clear agreement on what actually qualifies as neuromarketing. Or, for that matter,what qualifies as valid research versus junk science. (Nor is there any research backing up claims that EEG hasalready become the de facto standard in the field.)The Advertising Research Foundation, for example, through its NeuroStandards Collaboration Project, is attemptingto define both the category and the research protocols and has secured the cooperation of seven companies indeveloping an independent peer review process for their work. ARF’s Horst Stipp, a retired TV researcher who spent41 years at NBC before joining the foundation, says there are no firm estimates of how many companies are evenclaiming to provide neuromarketing research.Babelfish Articles Oct 2011 Page 136
  • 137. Il lustration by Bryan ChristieThe test we’re watching was designed by Dr. Marco Iacoboni, an Illuminare founder, and professor of psychiatry andbehavioral sciences at the UCLA Medical School, who runs the Transcranial Magnetic Stimulation Lab at theuniversity’s Ahmanson-Lovelace Brain Mapping Center. It was founded two decades ago as one of the first dedicatedacademic medical research institutes to use fMRI to study the brain. Research Iacoboni conducted in 2006 on viewerreactions to that year’s Super Bowl ads eventually led to a broader interest in finding commercial applications fortheir efforts.While Iacoboni and the other UCLA researchers have used a variety of tools, including EEG, in their work, they seefMRI as the leading edge of neuroscience technologies. “EEG can tell you when something happens in the brain withmillisecond temporal precision, but that information is generally useless when it comes to understanding whatpeople think and feel,” Iacoboni says. “What people think and feel is dictated by where in the brain it happens, andBabelfish Articles Oct 2011 Page 137
  • 138. EEG has no way of telling you that. The temporal precision of fMRI is good enough that I can tell you what youreacted to in a commercial.”As Iacoboni notes, EEG only measures surface electrical activity—but that’s also its main advantage over fMRI sincethe equipment used to detect it (at least with current technologies) is much more portable. Multiple neuromarketershave developed simple caps containing electrodes that study subjects can wear while sitting at home in their denswatching TV, for example, instead of the artificial environment of an imaging center.“EEG became more popular because it’s cheap,” Iacoboni adds. “But you also get cheap data with it.”Iacoboni is careful to point out that even with the ability to peer below the surface using fMRIs, “brain regions do amultitude of things, not just one.” But some associations between stimuli and brain region, he says, are strongerthan others, particularly when it comes to marketing messages—and the key with fMRI is that it can hone in onthose regions much more specifically than an EEG can because of the 3-D view it provides.“We use an expression that you’ve probably heard before, which is ‘location, location, location,’ because we can tellwhat’s happening and where it’s happening. And we can tell you what that really means,” says Illuminare’s CEO, JimSmith, a veteran ad executive who was general manager for Lord Dentsu Y&R in Los Angeles, as well as co-founder ofGround Zero (since merged into Wong, Doody, Crandall, Wiener). It’s his task to turn the work of the academicexperts—who also include John Mazziotta, chairman of the UCLA Medical School’s neurology department anddirector of the school’s brain mapping center; and Dieter Enzmann, chairman of UCLA’s radiology department—intoservices appealing to potential customers.Smith says they expect customers to extend well beyond the ad industry. (News reports suggest political consultants,package designers, and the movie industry have already turned to neuromarketers for data.)“This is data you cannot access with traditional tools,” says Iacoboni. In classic focus groups and telephone surveyresearch, he adds, “people can tell you things because of social pressure that they don’t really mean.”One of Iacoboni’s favorite examples of this is the fMRI study he performed on Super Bowl ads. Exposed to ads thatplayed on a female actress’ sex appeal, including one from GoDaddy.com, women who were tested dismissed itverbally as exploitative.What was happening deep inside their brains, however, said otherwise. “Actually, they really enjoyed it,” Iacobonisays. The areas of the brain that encode reward lit up on the fMRI in the women studied; so did the areas indicatingempathy—meaning despite what they said, these women saw the actress as someone they identified with andwanted to emulate.“Sometimes we don’t even really know what we really like,” Iacoboni says, “because a lot of things we like are soentrenched it’s very difficult to access them.”Entrenched in that they reside in some of our most primitive recesses—areas seemingly unaffected by tools in theadvertising kit since the creative revolution of the ’60s. Take humor, which sometimes doesn’t seem to register withthose primitive realms. When Iacoboni did his Super Bowl study in 2006, he showed subjects ensconced in the fMRIBabelfish Articles Oct 2011 Page 138
  • 139. machine Super Bowl ads before they aired. One of the ads in the study, which ended up widely praised when it aired,was a FedEx commercial with a cave man story line; it included a punch-line ending in which one of the cave menstomps out of the cave in disgust after being reprimanded by a superior for not using FedEx—only to be stomped bya giant dinosaur foot when he did. Funny, right? But deep inside the brains of Iacoboni’s subjects the area thatshowed the biggest spike in activity when the foot came down was the amygdala—the area that generates ourresponse to threats and fear. Intentionally or not, FedEx hadn’t amused its audience but terrified it.This view into the subconscious can even seem to echo age-old psychiatric theories about what’s happening insideour heads, developed long before such tools were available—like Freud’s theories about the “systematicunconscious,” which he later refined into the idea of the id, describing it as “filled with energy reaching it from theinstincts.”“If you actually step back,” Iacoboni says, describing recent models of brain activity based on brain mapping studies,“you say, ‘Well, this sounds like the same thing Freud said 100 years ago!’”HTML5 Gaining But Mobile Fragmentation Remains by Mark Walsh, over 1 hour agoThe HTML5 programming language may be gaining ground as a standard for the mobile Web, but theres still a longway to go before it leads to a seamless user experience on devices. Thats the upshot of a new study (registrationrequired) by mobile software firm Netbiscuits, which found that a majority of the top-selling 10 smartphones in theU.S. have adopted HTML5 features.Between 70% and 90% of the top devices support key HTML5 programming elements including offline Webapplication capability, a geolocation API (application protocol interface), 2D animation rendering and Web storage.Thats an improvement from 6 out of 10 smartphones providing those features in November 2010.But Netbiscuits, whose cloud-based software powers cross-platform development of mobile sites and apps, notedthat only four of the 17 standard HTML5 standard components are supported by the leading handsets. The companyfound similar, if slightly worse, results for other countries included in the study, such as France, Germany and Spain.HTML5 has gather growing support for mobile Web development in the last year from prominent publishersincluding The New York Times, Conde Nast and Meredith, in addition to backing from major technology companiesincluding Apple and Google. But most smartphone users prefer to access content on their phones using native apps.Among other finding, the Netbiscuits report showed that smartphones accounted for almost 80% of North Americantraffic on its platform, with feature phones driving 11%, and media players about 7%. Among smartphone operatingsystems, Android generated 46% of traffic, followed by Apples iOS, at 35%, and BlackBerry at 15%.When it comes to individual devices, the iPhone is the top device accessing mobile sites, with a 24% share in the U.S.Thats followed by the iPod Touch with 6.3% and Android with 3.1%. The dominance of Android and Apple still hasntsolved the fragmentation problem in mobile, though, according to the study."Even if all iPhones or Android devices were running on the latest version of their respective operating system,differences in hardware would still hinder the implementation of a single user experience among all devices," itstated.The issue is especially pronounced for Android, for which some 40 different manufacturers worldwide are creatingphones based on the Google platform. Screen sizes for Android phones, for instance, vary widely."This report illustrates the need for brands, publishers and retailers to think beyond iPhone and Android whendeveloping and executing a sustainable mobile strategy," said Netbiscuits CEO Michael Neidhoefer, in announcingthe results.Underscoring that point, the company recommended that a companys mobile Web program should be tailored toup to 3,000 different devices. It also pointed out that the long tail of devices generates about two-thirds of all mobilesite requests.Babelfish Articles Oct 2011 Page 139
  • 140. Display Advertising Shifts From Direct Response To Branding Mediaby Laurie Sullivan, Friday, September 30, 2011, 5:23 PMBrand marketers looking for alternative strategies to connect with consumers have begun to focus attention ondisplay advertising, a medium historically known to elicit a direct response.Most planning to buy media in display look toward clicks, impressions and conversions to measure performance. Butthe more important metrics often point to return on ad spend, online searches for brand names, product recall, andsales.There is evidence through recent campaigns from brands like Sealy and Animal Planet, along with research fromCollective, that online display advertising continues to shift from a direct-response form of advertising to brandingmedia."The Digital Advertising 2011: A Portrait of Conflict" study released by Collective finds that 57% of agencies believethe majority of their display objectives are to build the brand, yet only 11% cite ad creative as critical to thecampaigns success.Still, 60% of agencies cite brand recall and intent to purchase as the most important measures of online success.However, clicks and conversions remain the key criteria agencies say they use to evaluate media, according to theCollective study.As for Sealy, the mattress company wanted to go from a household name to a lifestyle brand, according to DanTaylor, head of sales for the Google Display Network. "The mattress category is sort of a snooze fest," he said. "Sealy felt theres not a huge differentiation in brands in the minds of consumers." Sealy set out to reinvent its brand using YouTube promoted videos and in-stream video ads, driving 46% of its Web site traffic during the first week of the campaign. It rolled out supported by the tagline "Whatever you do in bed Sealy supports it," reaching a younger audience. The YouTube videos garnered more than 500,000 views, a number more familiar to entertainment, not mattress companies. The campaign debuted around the Super Bowl. YouTube content contributed about 21% of Sealys Web site referral traffic during February. A mobile campaign through AdMob highlighted the "In Bed" app. The application lets users take a photograph of anything with a camera phone and insert an "In Bed" tag in the photo before posting it or sending it off to a friend. New technologies and ad formats enable interactive messages, moving display beyond simple text and graphs. Brand advertisers also have begun to see budgets shift from TV, although its a bit premature to quantify the amount, Taylor said. Animal Planets River Monster interactive ad campaign attracted 1.6 million viewers to the season premier, putting it in the No. 1 spot amongits younger, target audience, males ages 18 to 49. Google supported the video and rich media campaign across theGoogle Display Network, AdMob, and YouTube.Google serves more than 110 million impressions during the display campaign. YouTube visitors to the brand channelpage hung out with the river monsters for about 3:45 minutes on average watching show content.Monday, October 3, 2011Would Don Draper Be Relevant Today?Babelfish Articles Oct 2011 Page 140
  • 141. By Matt StrazMy evening commute from Manhattan back to Connecticut often takes me by Y&R, the storied New York ad agencythat has been located at 285 Madison Avenue for nearly a century. It was at this same agency where Draper Daniels,the real life inspiration for televisions "Mad Men" Don Draper character, got his first job in advertising as acopywriter in the 1940s. And its no wonder "Mad Men" creator Matt Weiner used Daniels as a model for his Draper.The broad-shouldered Daniels certainly embodied the part of a suave, creative genius.My trip up Madison Avenue and down memory lane recently got me to thinking: Would the character that DraperDaniels inspired be relevant in todays advertising industry? Could Don Drapers ability to move people with wordsand images translate to a world of computerized ad exchanges, pay-per-click campaigns and restrictive HR policies?As I entered Grand Central Terminal and boarded my commuter train, retracing the steps that thousands of admenhad taken over the years, it occurred to me that Don Draper would, in fact, have a place in advertising today. Theonly difference is that it wouldnt be at an agency.Todays Draper would be an entrepreneur, probably launching a New York-based technology startup. Hed be usinghis power of persuasion to convince venture capitalists to give him millions of dollars so he could start his owncompany. Once he had the money, he would talk others into leaving their well-paying jobs and joining his nascentstartup. And after he got the software built, he would cajole prospective clients into trying his product.The skills of an adman and entrepreneur are quite similar. The job in both cases is to sell the promise of something, ifnot the thing itself. In a popular viral video distributed last week, clips from an episode where Draper pitches acarousel slide projector for Kodak were repurposed to promote Facebooks new timeline feature. Its absolutelyplausible that, as a modern-day entrepreneur ,Draper would make a similar pitch. In fact, pitches like this happenevery day in venture capital boardrooms throughout the city.What about the other "Mad Men" characters? Would they be relevant in our world? I believe that they would. Peggywould still be writing copy for clients, except now the copy would be in the form of descriptions for Google AdWordscampaigns. The buxom Joan might have started off as a planner at some digital agency and then jumped to the sellside, pitching banner ads for a popular website. Pete would still be a creep, working for some shady affiliatemarketing company. The smooth-talking Roger Sterling would be head of sales for one of the big networks and BertCooper, ever-idiosyncratic, would be making a fortune as a venture capitalist.Only Harry Crane, the media guy, would have the same job: running a TV buying group and negotiating upfront dealseach May. Thats one part of the advertising landscape that has remained largely intact.While the technology revolution of the past decade has erased almost every trace of advertisings creative revolutionand the real Mad Men that spawned it, if you look closely enough youll see the same kinds of characters are aroundtoday.Times change, but people do not.What do you think? Would the Mad Men have a role in our world today?Report: Ad Networks Raking in More Display SpendWritten onSep 30, 2011AuthorGavin Dunaway |ADOTAS – Pretty assured in the belief that ad networks are on the decline? Well, the second annual OnlineAdvertisers Survey Report from Econsultancy and supply-side platform The Rubicon Project suggests quite theopposite, with networks receiving an average of 55% of the average media plan compared to 31% cited in a 2009Econsultancy report.Babelfish Articles Oct 2011 Page 141
  • 142. And the spend is going more places — 43% of respondent said they work with at least five different ad networkscompared to 30% who said the same two years ago. Thirty-four percent said they buy media from between five and10 networks, while 46% said they were going to more networks than last year.More than a thousand online advertising pros were queried about their display practices, but the report isparticularly focused on results from 400 (presumably important) advertisers and agencies. The meatiest bits?• 68% of media buyers in the U.S. and 57% of those in Europe said they had increased their display spend during thelast year, with about a quarter commenting that they had shifted some of their search budgets into display.• 23% of respondents (39% in the U.S.) said they use at least one DSP, with 82% of that group saying they use morethan one — 15% were utter whores, working more than four at the same time. For buyers using DSPs, that channeltakes up an average of 32% of the media plan.• Improved targeting was seen as a key benefit of working with a DSP by 64%, followed by real time campaigninsights (60%) and impression-level bidding (53%). Lack of available inventory and service were cited as challenges by54% and 51% of respondents, respectively.• 34% of agency trading desk spend goes through RTB (41% in US and 34% in Europe), but 37% of the respondentssaid their trading desks throw less than 20% of media spend at RTB. Interestingly, 17% of advertisers and agenciesdidn’t allocate any display advertising budget to trading desks.Babelfish Articles Oct 2011 Page 142