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Waves of Change Shaping Digital
Joe Lamantia
Media Catalyst
8 waves of change
  shaping digital
   experiences
Social                            Take Away




                           Digital = Social
                           Co-Creation
Co-Creation                                            Convergence

                           Digital Natives
                           Itʼs All a Game
 Digital                   Take Away                     Everyware
 Natives
                           Convergence
                           Everyware

              It’s All a
                           Seeing Is Believing   Seeing Is
               Game                              Believing
Digital = Social
                                                           Social
Experiences have a ʻsocial layerʼ
» Social interactions are the source of experience value
» New environments are primarily social

» Networks become primary organizing structures

» Experiences shaped by linked & overlapping networks
» Exchanges occur via marketplaces
    (information, services, goods, reputation)
Digital = Social
                                                                             Social
Implications & Challenges
» Identity is shaped by interactions in the social layer
» Experience value is determined by individuals
» Experience value is influenced by networks
» Communities define marketing contexts and opportunities
  » Each context is different: forums, social networks, virtual worlds, microblogs
Digital = Social
                                                             Social
Opportunities for digital marketers
 Engage conversations in new social environments
  » Create identity & voice for products & brands
  » Respect social context when advertising / marketing

 Ensure experiences include or connect to the social layer
  » Integrate & cooperate with social ecosystem
  » Facilitate 2-way conversations
my Starbucks Idea

» Interactions structured by
  Starbucks
» Effected and managed by social
  mechanisms
  »   Publication
  »   Discussion
  »   Mediation
  »   Voting
» Innovation via crowdsourcing
GetSatisfaction

Customers provide support for
products & services directly to one
another using 3rd party created
forum.


» Structured by brand and product
» Companies may participate
  officially or unofficially
» Customer to customer
  interactions create value and
  effect business model
Co-Creation
                                                                 Co-Creation
Everyone can create (again)
» Low-cost, high-quality tools for creating digitally and physically
» Producer vs. consumer distinction dissolves
» Business and economic (and political) structures change
  » Open Source, Open Data, Open Stack
  » hybrids, ecologies of co-creation

» Growth of virtual economies & currencies
Co-Creation

A model in which businesses and other organizations         Co-Creation
create goods, services, and experiences shaped by
participation, collaboration, or cooperation with
consumers and other parties.


Successful co-creation requires interaction from all
parties, and in turn rewards all parties in some way.


The goal of co-creation is to create experiences of value
to all parties.
Co-Creation
                                                                 Co-Creation
Implications & Challenges
» Co-creation experience is the basis of value for individuals
» Consumers want to interact with communities
» Co-creators = business partners: marketing, sales, distribution, etc.
Co-Creation
                                                               Co-Creation
Opportunities for digital marketers
» Make and share the tools people use to create experiences
» Show the “seams” - allow customers to shape experiences
» Reward successful co-creators: social status, $$, unique offerings, etc.
» Provide environmental services for co-creators: establish markets
Spore Creature Creator

Free toolkit allows creation of
characters for Spore


Released before the full game
Web gallery publicizes creations
100k creatures in 22 hours
1.8 million creatures by Sept. ʻ08
47 million creations by Nov. ʻ08
Digital Natives
                                                                      Digital
New generations ʻgrow upʼ digital                                     Natives

» Expectation = all experiences are digital in some way
» Avatars are integral parts of identity in all contexts
  » Comfortable managing multiple on-line identities
  » Expect to own their digital identities and personal information

» All relationships have a digital focus or aspect
» Brands are seen as people (and vice versa)
Digital Natives
                                                                          Digital
Implications & Challenges                                                 Natives

» Digital demographics drive segmentation, audiences
» New Digital Generation Gap(s)
  » Rapid socio-technical changes mean multiple ʻdigital generationsʼ co-exist
  » Digital generations are not tied to real demographics
  » Digital maturity is greatest for identities created in the present
  » Demographic maturity is the opposite!
Digital Natives
                                                                  Digital
Opportunities for digital marketers                               Natives

» Address digital generations as real generations
» Allow digital natives to define multiple individual identities
» Allow people to connect digital identities as they choose
» Use “influence bundling” to bridge digital generation gaps
Digital Natives = Social Co-Creators
“Some 93% of teens use the internet, and more of them than          Digital
ever are treating it as a venue for social interaction -- a place   Natives
where they can share creations, tell stories, and interact with
others.”



“...content creation is not just about sharing creative output;
it is also about participating in conversations fueled by that
content. Nearly half (47%) of online teens have posted
photos where others can see them, and 89% of those teens
who post photos say that people comment on the images at
least ʻsome of the time.ʼ”
Growing Up Digital
Digital Generation Gap




                     ??
“Identity seems to me to be a
function of networks of influence.”

“You are, in part, your personally
constructed brand, but equally or
more so the narratives that traverse
your network of influence.”
              Eliot Frick IFTF
Digital Natives & Co-Creation
“The Pew Internet & American Life Project has found that 64% of        Digital
online teens ages 12-17 have participated in one or more among         Natives
a wide range of content-creating activities on the internet, up from
57% of online teens in a similar survey at the end of 2004.”


“Girls continue to dominate most elements of content creation.
Some 35% of all teen girls blog, compared with 20% of online
boys, and 54% of wired girls post photos online compared with
40% of online boys. Male teens, however, do dominate one area
-- posting of video content online. Online boys are nearly twice as
likely as online girls (19% vs. 10%) to have posted a video online
where others could see it.”
Itʼs All a Game
                                                                           It’s All a
Games are legitimate                                                        Game

» Games dominate the media horizon
  » Greater revenue and attention share than cinema, TV, radio

» Games address all audiences
  » Casual games, brain teasers, fashion, strategy, sports, action, etc…

» Game elements and mechanisms are standard experience elements
  » Game interactions engage and satisfy in multiple contexts

» Games are ʻseriousʼ
  » Successful tools for education, insight, organization, action
Itʼs All a Game
                                                                   It’s All a
Implications & Challenges                                           Game
» Games viewed as another experience genre / channel
  » Art form, political statement, story vehicle, education tool
» Advertising permeates game experiences
» Reality and games blend (& invert)
Itʼs All a Game
                                                                        It’s All a
Opportunities for digital marketers                                      Game
» Use game mechanisms to enhance emotions in experiences
  » Match mechanisms to desired emotional profiles, context, audiences

» Allow people to create games from ʻnon-gameʼ experiences
  » Co-creators will interpret & define brands through games

» Inform game experiences with local & personal contexts
Casual Games

“ʼCasual gamingʼ is loosely defined as anything easy to learn that   It’s All a
doesnʼt require a big time commitment, like Solitaire, Bejeweled     Game
or Diner Dash. Games like those have 200 million active players,
and pull in $2.25 billion yearly, according to a new Casual
Gaming Association report.”


“However …in the future, players will begin to embed games on
their own pages, whether thatʼs a Facebook profile or a personal
webpage, and casual games will become much more
personalized.”


“Although casual game players are evenly distributed through the
population, women account for 74% of all paying players, just as
young males dominate the hardcore gaming market. Both
segments of the gaming industry would like to move into each
otherʼs paying base.”
Casual Collective

“Paul Preece, creator of viral real-
time strategy classic Desktop
Tower Defense, has a new game
site: Casual Collective launches
today, backed by $1 million in seed
funding from Lightspeed Venture
Partners.”
iPhone & Casual Games
Still, some game developers are choosing Apple over Nintendo or Sony because              It’s All a
there are no pricey game cartridges to manufacture for the iPhone and there is no need     Game
for a retail distribution network.


quot;The barriers to entry are such that anyone with a great idea can efficiently bring
them to market,quot; said Bart Decrem, a Silicon Valley executive who formed a company
called Tapulous Inc. to make iPhone games earlier this year.


So far, Mr. Decrem has had more than 2.5 million downloads of a free music game
called quot;Tap Tap Revenge,quot; where players tap and shake their devices to the beat of
popular tunes.


Now the Palo Alto, Calif., firm is selling ads in the game to sponsors such as car maker
Jaguar and Comedy Central. It has also released a $4.99 version featuring the rock
band Nine Inch Nails. The company declined to discuss its revenue.


For people like John Sims, a bank teller in Denver, the iPhone is winning out over
dedicated portable game players. Though he concedes the Sony and Nintendo
devices provide better quality games, most iPhone games cost far less. Plus, he
prefers to carry only one device.
Take Away
                                                             Take Away
Digital experiences are portable
» People choose and manage streams of content & functionality
» Common structure allows easy manipulation
  » RSS, microformats, APIs, metadata, SOA, file formats

» Environment provides shared services
  » OpenSocial, openID, cloud computing, analytics, search

» Digital atoms are ʻvisibleʼ & accessible
Take Away
                                                               Take Away
Implications & Challenges
» Broadcast message model replaced by value-add exchanges
  » forward, embed, share, remix, modify

» Atoms of content become seeds for accreted context
» Communities create context that drives meaning and value of content
» Granular findability, usability, measurement = explicit design concerns
Take Away
                                                         Take Away
Opportunities for digital marketers
» Make content easily portable: standards, formats,
  structures, APIs
» Encourage the growth of positive context
» Reward people who add value and re-circulate
  experience elements
» Direct exchanges by defining structures and channels,
  create markets
Convergence
                                                                                           Convergence
Media & platforms converge
» Experiences span multiple media, channels, formats
» Narrative, interaction, emotional elements must sustain transitions
» Platforms and delivery converge
  » Game console, PC, media center, time-shift [Tivo], data backup [Time Machine]

» Advertising permeates all experience environments
  » Social networks, virtual worlds, game experiences, film, UGC, widgets, environmental services (search)
Convergence
                                                               Convergence
Implications & Challenges
» Traditional containers & boundaries are permeable
  » Channel, genre, format, style, medium

» Experiences span media, contexts, identities

» Cross-media experiences create multiple interaction points
Convergence
                                                           Convergence
Opportunities for digital marketers
  » Decouple experiences from media and platforms
  » “Broadcast” messages by encouraging distribution via community
   and individual networks
  » Amplify messages by across channels / platforms
  » Define complementary value propositions for layers of the
   experience stack
Everyware
                                                           Everyware
On-line and off-line blend
» Virtual and physical boundaries blur
  » Mobile, geo-location, always-on, broadband

» Objects, spaces, information, people interact
  » Internet of things, spimes, mediated publics, RFID

» Technology “dissolves into the background”
  » Ubiquitous computing, ambient informatics, pervasive
Everyware
                                                                 Everyware
Implications & Challenges
» Offline is a social status (not technical)
» Virtual and real networks & contexts simultaneously present
» Everything is searchable
  » People, digital atoms, places, reputation, brand, activity

» New digital privacy, ethics, safety concerns
Everyware
                                                                   Everyware
Opportunities for digital marketers
» Allow people to define experiences & interactions for their contexts
» Define experiences that are “polite, pertinent and pretty”
» Connect experiences to local context - physical, social, cultural, etc.
  » Real context blends with virtual experience
  » Proximity based social experiences
Seeing Is Believing
                                                                           Seeing
Visualization makes the intangible real
» Rapid growth of visualization infrastructure
  » Google Charts, Yahoo Maps, Streetview, Virtual Earth, Geonames, hardware &
    software

  » Public data sets encourage ʻcollective intelligenceʼ
  » Census, genetics, environment, politics, economics, physics

» Depictions influence culture & society
  » Red states vs. Blue states [U.S.]
Seeing Is Believing
                                                              Seeing
Implications & Challenges
» Brand & business transparency based on
» Public data, services, & metrics
» Rise of real-time consensus
  » Social layer provides instant, public, visible feedback

» Everyone has (information [power])
  » Individuals can analyze anything w/ powerful tools

» Voice of authority up for grabs in many contexts
Seeing Is Believing
                                                                      Seeing
Opportunities for digital marketers
» “Publish before perish”
  » Transparency requires honesty - concealment & spin are difficult
Processing

» Open source tool for data
  visualization, animation
FiveThirtyEight.com

Daily analysis of aggregate U.S.
political & election polls
» Transparent methodology and
  data sources
» Visualization using common tools

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Waves of Change Shaping Digital Experiences

  • 1. Waves of Change Shaping Digital Joe Lamantia Media Catalyst
  • 2. 8 waves of change shaping digital experiences
  • 3. Social Take Away Digital = Social Co-Creation Co-Creation Convergence Digital Natives Itʼs All a Game Digital Take Away Everyware Natives Convergence Everyware It’s All a Seeing Is Believing Seeing Is Game Believing
  • 4. Digital = Social Social Experiences have a ʻsocial layerʼ » Social interactions are the source of experience value » New environments are primarily social » Networks become primary organizing structures » Experiences shaped by linked & overlapping networks » Exchanges occur via marketplaces (information, services, goods, reputation)
  • 5. Digital = Social Social Implications & Challenges » Identity is shaped by interactions in the social layer » Experience value is determined by individuals » Experience value is influenced by networks » Communities define marketing contexts and opportunities » Each context is different: forums, social networks, virtual worlds, microblogs
  • 6. Digital = Social Social Opportunities for digital marketers Engage conversations in new social environments » Create identity & voice for products & brands » Respect social context when advertising / marketing Ensure experiences include or connect to the social layer » Integrate & cooperate with social ecosystem » Facilitate 2-way conversations
  • 7. my Starbucks Idea » Interactions structured by Starbucks » Effected and managed by social mechanisms » Publication » Discussion » Mediation » Voting » Innovation via crowdsourcing
  • 8. GetSatisfaction Customers provide support for products & services directly to one another using 3rd party created forum. » Structured by brand and product » Companies may participate officially or unofficially » Customer to customer interactions create value and effect business model
  • 9. Co-Creation Co-Creation Everyone can create (again) » Low-cost, high-quality tools for creating digitally and physically » Producer vs. consumer distinction dissolves » Business and economic (and political) structures change » Open Source, Open Data, Open Stack » hybrids, ecologies of co-creation » Growth of virtual economies & currencies
  • 10. Co-Creation A model in which businesses and other organizations Co-Creation create goods, services, and experiences shaped by participation, collaboration, or cooperation with consumers and other parties. Successful co-creation requires interaction from all parties, and in turn rewards all parties in some way. The goal of co-creation is to create experiences of value to all parties.
  • 11. Co-Creation Co-Creation Implications & Challenges » Co-creation experience is the basis of value for individuals » Consumers want to interact with communities » Co-creators = business partners: marketing, sales, distribution, etc.
  • 12. Co-Creation Co-Creation Opportunities for digital marketers » Make and share the tools people use to create experiences » Show the “seams” - allow customers to shape experiences » Reward successful co-creators: social status, $$, unique offerings, etc. » Provide environmental services for co-creators: establish markets
  • 13. Spore Creature Creator Free toolkit allows creation of characters for Spore Released before the full game Web gallery publicizes creations 100k creatures in 22 hours 1.8 million creatures by Sept. ʻ08 47 million creations by Nov. ʻ08
  • 14. Digital Natives Digital New generations ʻgrow upʼ digital Natives » Expectation = all experiences are digital in some way » Avatars are integral parts of identity in all contexts » Comfortable managing multiple on-line identities » Expect to own their digital identities and personal information » All relationships have a digital focus or aspect » Brands are seen as people (and vice versa)
  • 15. Digital Natives Digital Implications & Challenges Natives » Digital demographics drive segmentation, audiences » New Digital Generation Gap(s) » Rapid socio-technical changes mean multiple ʻdigital generationsʼ co-exist » Digital generations are not tied to real demographics » Digital maturity is greatest for identities created in the present » Demographic maturity is the opposite!
  • 16. Digital Natives Digital Opportunities for digital marketers Natives » Address digital generations as real generations » Allow digital natives to define multiple individual identities » Allow people to connect digital identities as they choose » Use “influence bundling” to bridge digital generation gaps
  • 17. Digital Natives = Social Co-Creators “Some 93% of teens use the internet, and more of them than Digital ever are treating it as a venue for social interaction -- a place Natives where they can share creations, tell stories, and interact with others.” “...content creation is not just about sharing creative output; it is also about participating in conversations fueled by that content. Nearly half (47%) of online teens have posted photos where others can see them, and 89% of those teens who post photos say that people comment on the images at least ʻsome of the time.ʼ”
  • 20. “Identity seems to me to be a function of networks of influence.” “You are, in part, your personally constructed brand, but equally or more so the narratives that traverse your network of influence.” Eliot Frick IFTF
  • 21. Digital Natives & Co-Creation “The Pew Internet & American Life Project has found that 64% of Digital online teens ages 12-17 have participated in one or more among Natives a wide range of content-creating activities on the internet, up from 57% of online teens in a similar survey at the end of 2004.” “Girls continue to dominate most elements of content creation. Some 35% of all teen girls blog, compared with 20% of online boys, and 54% of wired girls post photos online compared with 40% of online boys. Male teens, however, do dominate one area -- posting of video content online. Online boys are nearly twice as likely as online girls (19% vs. 10%) to have posted a video online where others could see it.”
  • 22. Itʼs All a Game It’s All a Games are legitimate Game » Games dominate the media horizon » Greater revenue and attention share than cinema, TV, radio » Games address all audiences » Casual games, brain teasers, fashion, strategy, sports, action, etc… » Game elements and mechanisms are standard experience elements » Game interactions engage and satisfy in multiple contexts » Games are ʻseriousʼ » Successful tools for education, insight, organization, action
  • 23. Itʼs All a Game It’s All a Implications & Challenges Game » Games viewed as another experience genre / channel » Art form, political statement, story vehicle, education tool » Advertising permeates game experiences » Reality and games blend (& invert)
  • 24. Itʼs All a Game It’s All a Opportunities for digital marketers Game » Use game mechanisms to enhance emotions in experiences » Match mechanisms to desired emotional profiles, context, audiences » Allow people to create games from ʻnon-gameʼ experiences » Co-creators will interpret & define brands through games » Inform game experiences with local & personal contexts
  • 25. Casual Games “ʼCasual gamingʼ is loosely defined as anything easy to learn that It’s All a doesnʼt require a big time commitment, like Solitaire, Bejeweled Game or Diner Dash. Games like those have 200 million active players, and pull in $2.25 billion yearly, according to a new Casual Gaming Association report.” “However …in the future, players will begin to embed games on their own pages, whether thatʼs a Facebook profile or a personal webpage, and casual games will become much more personalized.” “Although casual game players are evenly distributed through the population, women account for 74% of all paying players, just as young males dominate the hardcore gaming market. Both segments of the gaming industry would like to move into each otherʼs paying base.”
  • 26. Casual Collective “Paul Preece, creator of viral real- time strategy classic Desktop Tower Defense, has a new game site: Casual Collective launches today, backed by $1 million in seed funding from Lightspeed Venture Partners.”
  • 27. iPhone & Casual Games Still, some game developers are choosing Apple over Nintendo or Sony because It’s All a there are no pricey game cartridges to manufacture for the iPhone and there is no need Game for a retail distribution network. quot;The barriers to entry are such that anyone with a great idea can efficiently bring them to market,quot; said Bart Decrem, a Silicon Valley executive who formed a company called Tapulous Inc. to make iPhone games earlier this year. So far, Mr. Decrem has had more than 2.5 million downloads of a free music game called quot;Tap Tap Revenge,quot; where players tap and shake their devices to the beat of popular tunes. Now the Palo Alto, Calif., firm is selling ads in the game to sponsors such as car maker Jaguar and Comedy Central. It has also released a $4.99 version featuring the rock band Nine Inch Nails. The company declined to discuss its revenue. For people like John Sims, a bank teller in Denver, the iPhone is winning out over dedicated portable game players. Though he concedes the Sony and Nintendo devices provide better quality games, most iPhone games cost far less. Plus, he prefers to carry only one device.
  • 28. Take Away Take Away Digital experiences are portable » People choose and manage streams of content & functionality » Common structure allows easy manipulation » RSS, microformats, APIs, metadata, SOA, file formats » Environment provides shared services » OpenSocial, openID, cloud computing, analytics, search » Digital atoms are ʻvisibleʼ & accessible
  • 29. Take Away Take Away Implications & Challenges » Broadcast message model replaced by value-add exchanges » forward, embed, share, remix, modify » Atoms of content become seeds for accreted context » Communities create context that drives meaning and value of content » Granular findability, usability, measurement = explicit design concerns
  • 30. Take Away Take Away Opportunities for digital marketers » Make content easily portable: standards, formats, structures, APIs » Encourage the growth of positive context » Reward people who add value and re-circulate experience elements » Direct exchanges by defining structures and channels, create markets
  • 31. Convergence Convergence Media & platforms converge » Experiences span multiple media, channels, formats » Narrative, interaction, emotional elements must sustain transitions » Platforms and delivery converge » Game console, PC, media center, time-shift [Tivo], data backup [Time Machine] » Advertising permeates all experience environments » Social networks, virtual worlds, game experiences, film, UGC, widgets, environmental services (search)
  • 32. Convergence Convergence Implications & Challenges » Traditional containers & boundaries are permeable » Channel, genre, format, style, medium » Experiences span media, contexts, identities » Cross-media experiences create multiple interaction points
  • 33. Convergence Convergence Opportunities for digital marketers » Decouple experiences from media and platforms » “Broadcast” messages by encouraging distribution via community and individual networks » Amplify messages by across channels / platforms » Define complementary value propositions for layers of the experience stack
  • 34. Everyware Everyware On-line and off-line blend » Virtual and physical boundaries blur » Mobile, geo-location, always-on, broadband » Objects, spaces, information, people interact » Internet of things, spimes, mediated publics, RFID » Technology “dissolves into the background” » Ubiquitous computing, ambient informatics, pervasive
  • 35. Everyware Everyware Implications & Challenges » Offline is a social status (not technical) » Virtual and real networks & contexts simultaneously present » Everything is searchable » People, digital atoms, places, reputation, brand, activity » New digital privacy, ethics, safety concerns
  • 36. Everyware Everyware Opportunities for digital marketers » Allow people to define experiences & interactions for their contexts » Define experiences that are “polite, pertinent and pretty” » Connect experiences to local context - physical, social, cultural, etc. » Real context blends with virtual experience » Proximity based social experiences
  • 37. Seeing Is Believing Seeing Visualization makes the intangible real » Rapid growth of visualization infrastructure » Google Charts, Yahoo Maps, Streetview, Virtual Earth, Geonames, hardware & software » Public data sets encourage ʻcollective intelligenceʼ » Census, genetics, environment, politics, economics, physics » Depictions influence culture & society » Red states vs. Blue states [U.S.]
  • 38. Seeing Is Believing Seeing Implications & Challenges » Brand & business transparency based on » Public data, services, & metrics » Rise of real-time consensus » Social layer provides instant, public, visible feedback » Everyone has (information [power]) » Individuals can analyze anything w/ powerful tools » Voice of authority up for grabs in many contexts
  • 39. Seeing Is Believing Seeing Opportunities for digital marketers » “Publish before perish” » Transparency requires honesty - concealment & spin are difficult
  • 40. Processing » Open source tool for data visualization, animation
  • 41. FiveThirtyEight.com Daily analysis of aggregate U.S. political & election polls » Transparent methodology and data sources » Visualization using common tools