The Shrinking Brand - Marketing in a Small World

Slide 1: The small world Tim Leberecht / eMarketing Conference / San Francisco / April 15, 2008

Slide 2: 1. The world is small and life is short

Slide 3: Small(er) world

Slide 4: Small(er) world

Slide 5: Inter-connectedness has reached unprecedented levels. We can make targeted connections within the context of our individual demographics, preferences, and consumer habits. Online social networks have ushered in a revelation of personal user data for the benefit of connecting with like-minded people. New universes of consumers, “worlds within worlds,” are the emerging realities of individualized and shrunken consumer segments based on shared preferences. The “right” products connect with the “right” consumers: Micro-markets blossom at the “long tail” of the economy where the consumption (of information and goods) is stratified over various communities of users. More markets and market vehicles are becoming atomized and decomposed. We are facing an a fragmentation of demand and an over-supply of choice. Small(er) world

Slide 6: The smaller, the more innovative. A reduction in size has become the sign post on the road to innovation, and it expresses a trend towards the dematerialization of the value of products. In highly competitive markets, brands carve out niches with specialized products that are designed to serve only one specific purpose, meet one specific user requirement, and do one thing excellently well. Ecoconcerns, design savvy, and an (urban) quest for practicality have fostered the trend toward products that are as small as the niches they serve. Small(er) world

Slide 7: Going micro

Slide 8: Micro-cars

Slide 9: Micro-jets

Slide 10: Micro-services

Slide 11: Only 48 seats Micro-finance

Slide 12: Micro-gadgets

Slide 13: Only 48 seats Micro-gadgets

Slide 14: Only 48 seats Micro-sales

Slide 15: • CD (standard release) (1) • CD (bonus features) (2) • Full track download (2) • Full track rental (limited use) (16) • Full track streaming (á la carte) (16) • Full track streaming (subscription) (16) • Album download (permanent) (14) • Online video download (3) • Blog skin (music plays on blog with images) (15) • Digital karaoke (16) • Music letter (ecard with tunes) (16) • Full track download (16) • Full track streaming (16) • My bell (ringtone melody) (16) • Live bell (ringtone melody with remixes) (48) • Mix ring (snippets of 3 songs combined into 1 track) (16) • Mix bell (same as mix ring, but outgoing) (16) • Live bell plus screensaver (downloads ringtone with images) (12) • Color call (plays in background during a call) (16) • Ringback tone (112) • Video screensaver (12) • Mobile video downloads (3) • Mobile video-on-demand (3) (Source: Wired Magazine) Micro-sales

Slide 16: Atomization of value The digitalization of content allows for the stripping of coherent content into single personalized and customized content particles: new business models intersect customized distribution with short form content. Examples: iTunes has turned the traditional distribution model on its head by decomposing the traditional album format into individual songs for 99 cent per item. Pandora lets users create their own personal online radio station, based on their preferences. It provides only a mini-snapshot of the entire music universe, but adds value by making it accessible through a personalized entry point. Micro-sales

Slide 17: Shorter attention spans

Slide 18: 15 seconds!

Slide 19: 15 seconds!

Slide 20: Music, television, games, movies, fashion: We now devour our pop culture the same way we enjoy candy and chips - in conveniently packaged bite-size nuggets made to be munched easily with increased frequency and maximum speed. Yep!

Slide 21: Now is gone

Slide 22: “The blogosphere is wild, violent, and nasty, and it can kill you." 2,600 blogs 400,000 blogs > 1,000 inbound links > 20 inbound links 100,000,000 < 20 incoming links The long tail of the blogosphere 22

Slide 23: The web is a never ending conversation. First came email, then web portals, then search (aggregation), and now the distributed Internet with its myriad atomized blogs, widgets, voice posts, Twitter grams, RSS feeds, and social networking hubs. The World Wide Web is being atomized into thousands of "branded and un- branded micro-networks.” The days of "destination thinking" - the concept of driving as many eyeballs as possible to a central site ("one audience, one time, one venue") - are numbered. The atomization of the web

Slide 24: “In the old days, brands wanted everybody to pay attention to them. Now brands need to pay attention to everybody else.” [ someone somewhere on the web] Marketing as a Growth Champion Power shift 24

Slide 25: Mash-up/hybrid/slash culture Web 2.0, collaborative, social web, amateur web, whatever you want to call it: no longer is content production and distribution the exclusive domain of professional networks and content providers. “The ants have megaphones,” as Chris Anderson put it, and “the Long Tail” has become very fuzzy. This disrupts traditional marketing paradigms and challenges marketing professionals. The borders between professional and amateur, producer and consumer, are blurring. Power shift

Slide 26: The rise of social networks 26

Slide 27: Technorati estimates the total number of blogs to be 112.8 million (this does not include all the 72.82 million Chinese blogs as counted by The China Internet Network Information Center) About 8,000 new blogs are created every hour According to a study by Harris Interactive, over two-thirds of U.S. adults have watched a video on YouTube over the last year (that's somewhere around 197 million people) By 2006, 10 million people were listening to podcasts in 2006; by 2010, it's expected to be 50 million people Each day, over 100,000 new videos are posted on leading video sites -> close to 70 videos each minute About 28% of online Americans have tagged a photo, news story or blog post; about 7% of all American Internet users tag content every day A new study from Nokia predicts that by 2012 a quarter of all entertainment will be created, edited, and shared within peer groups rather than being generated by traditional media Digital footprints 27

Slide 28: Digital footprints 28

Slide 29: Collaborative Social Filtering (High engagement) (Medium engagement) -Adding friends -Rating - Networking -Voting - Create fan community -Commenting -Endorsing - Favoriting Attention & Reputation Content Creation Adoption (Highest engagement) (Low engagement) -Upload (UGC) -Bookmarking - Blogging -Tagging - Fan community -Adding to a group - Mash-ups - Podcasting - Vlogging Source: Forrester Research Social media 29

Slide 30: 38% 25% Collaborative Social Filtering (Joiners) (Critics/Collectors) 56% of online consumers participate in social media 18% 48% Content Adoption Creation (Spectators) (Creators) Source: Forrester Research Social media 30

Slide 31: Hyper-transparency

Slide 32: Shorter Hyper- attention connectivity spans The age of micro Miniaturization of content, Hyper- products, and transparency services Fragmentation Only 48 seats of demand and supply

Slide 33: Shorter Hyper- attention connectivity spans The micro cycle Miniaturization of content, Hyper- products, and transparency services Fragmentation Only 48 seats of demand and supply

Slide 34: 2. Shrink your brand!

Slide 35: Miniaturization of matter

Slide 36: Vibrational attunement

Slide 37: Fantastic voyage

Slide 38: Does it (down)-scale?

Slide 39: The Marketing Atom Adaptive Transparent Open Minuscule Only 48 seats

Slide 40: The Marketing Atom Adaptive Transparent Open Minuscule Conversations instead of messages Feedback = creation Instant Only 48 seats Permanent beta

Slide 41: The Marketing Atom Adaptive Transparent Open Minuscule Conversations Everything is visible instead of messages to everyone The more you Feedback = creation share, the more you will receive Instant Authenticity Only 48 seats Permanent beta

Slide 42: The Marketing Atom Adaptive Transparent Open Minuscule Conversations Everything is visible Easy to join instead of messages to everyone The more you Easy to co- Feedback = creation share, the more you create/hack will receive Instant Authenticity Easy to share Only 48 seats Permanent beta

Slide 43: The Marketing Atom Adaptive Transparent Open Minuscule Conversations Everything is visible Easy to join Content instead of messages to everyone The more you Easy to co- Feedback = creation share, the more you Distribution create/hack will receive Instant Authenticity Easy to share Timing Only 48 seats Permanent beta

Slide 44: Be smaller than your competition!

Slide 46: THINK BIG Mailing Website TV Ads Print Ads PR Trade Show Sales Promotion ABOVE THE LINE BELOW THE LINE Word-of-Mouth Customer Service THINK SMALL ABOVE THE LINE BELOW THE LINE Blogs Customer Service Community Events Slideshows Social Networks Micro-Blogs Word-of-Mouth Online Video Podcasts Eye-to-eye with your audience

Slide 47: TIMING TIMING DISTRIBUTION SHRINK YOUR BRAND! Only 48 seats CONTENT/FORMAT CONTENT/FORMAT

Slide 48: TIMING DISTRIBUTION SHRINK YOUR BRAND! Only 48 seats CONTENT/FORMAT Leaning into the frame

Slide 49: Lunchtime is the new prime time

Slide 50: Democratic exclusivity

Slide 51: Democratic exclusivity

Slide 52: Then Now Planning Annually/quarterly Daily Execution Monthly Daily Evaluation Monthly Daily Adjustment Quarterly Daily Only 48 seats CONTENT/FORMAT New marketing cycle

Slide 53: TIMING DISTRIBUTION CONTENT/FORMAT

Slide 54: “Build-a-channel-and-they-will-come”?

Slide 55: DISTRIBUTION Slice & dice

Slide 56: The ability to reduce the complexity of the world into small things and short forms. Poets, novelists, sculptors, painters, and composers have always had affinity for the beauty of small things and short forms - Sonnets, Cycladic figurines, La Rochefoucauld’s Maximes, the two-and-a-half minutes of Webern’s Five Pieces for Orchestra, Opus 10; photomicrography; Very Small Buildings in architecture; Micro Fiction (short stories based on a limit of 300 words); the Japanese Haiku. All these are artifacts that are small in scale, short in duration, and excessively modest in the claims they make on our attention. They occupy very little time or space and imprint themselves only lightly on the human sensorium - like a stinging ray of light that illuminates hearts and minds for the blink of an eye. Only 48 seats Micro-formats

Slide 57: Micro-formats

Slide 60: Video-snacking

Slide 62: Only 48 seats CONTENT/FORMAT Video-snacking

Slide 64: Act like an amateur! 64

Slide 65: Trash Talk Act like an amateur! (think BIG on a micro-level) 65

Slide 66: Act like an amateur! (think BIG on a micro-level) 66

Slide 67: Widgetize! 67

Slide 68: TIMING DISTRIBUTION CONTENT/FORMAT

Slide 70: Micro-touchpoints

Slide 78: 3. The macro of micro

Slide 79: DISTRIBUTION TIMING TIMING DISTRIBUTION SHRINK YOUR BRAND! Only 48 seats CONTENT/FORMAT CONTENT/FORMAT

Slide 80: DISTRIBUTION TIMING TIMING DISTRIBUTION Lean into the frame SHRINK YOUR Take advantage of the new prime BRAND! times Democratic exclusivity Adjust your marketing cycle Only 48 seats CONTENT/FORMAT CONTENT/FORMAT

Slide 81: DISTRIBUTION TIMING TIMING DISTRIBUTION Lean into the frame SHRINK YOUR Take advantage of the new prime BRAND! times Democratic exclusivity Adjust your marketing cycle CONTENT/FORMAT Micro-blogging Video/audio-snacking “Small” amateur stories Only 48 seats CONTENT/FORMAT

Slide 82: DISTRIBUTION TIMING TIMING DISTRIBUTION Widgets Lean into the Social media frame SHRINK YOUR Take advantage of the new prime BRAND! times Democratic exclusivity Adjust your marketing cycle CONTENT/FORMAT Micro-blogging Video/audio-snacking “Small” amateur stories Only 48 seats CONTENT/FORMAT

Slide 83: From authority to authenticity 83

Slide 84: Marketing Hardware Marketing Software Brand architecture Live brands Messages Conversations Sales brochures Endorsements Feature lists Expertise Destination sites Distributed/social web Tradeshows Mobile applications Trademarks Goodwill Packaging Revelations Out-of-the-box Insights Status Experience Point-of-sale Point-of-views Closed Open-source Look and feel Interaction Direct mailing Connections Billboards/ads Customer service Print collateral Widgets From hardware to software

Slide 85: From brands to live-brands 85

Slide 86: 1 SHRINK format 2 SHRINK timing 3 SHRINK distribution 4 SHRINK consistency 5 SHRINK authority The macro of micro

Slide 87: The macro of micro

Slide 88: Client Name ProjectName 88

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