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February 2008Archives

Recent PR nightmares

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In our Scout Labs application, I am Scouting dozens of things at any given time, but one of my favorites is my PR Nightmares Scout. I like watching for when corporations (and politicians!) slip-up, I must admit. Thought I’d share with you some of the juicy debacles I’ve discovered recently. Enjoy.

Hillary’s latest investment in herself
Compare and contrast these presidential fundraising headlines from The Politico today: Obama on pace to raise $30 mil in February and Clinton loaned her campaign $5 million . Wow.

Apple Russia caught up in PR nightmare
In a turn of events that almost seems too bizarre to be true, Russian journalist and 14-year Mac user Alex Patsay has written an open letter to Apple PR following what sounds to be a disastrous…

The World Bank chops down the Amazon rainforest
Here we go again. The World Bank is busy funding the destruction of the Amazon rainforest, alleges this article in The Independent . The World Bank has emerged as one of the key backers behind…

Is Your Web 2.0 Strategy On Target?
Recently, Susan Gunelius on BrandCurve wrote a post about Target stores dismissing a query from a blogger who objected to their latest ad campaign. It seems that the blogger thought the ad,…

Web Trend Map 2008

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When we talk about positioning, we often think about competitive matrices and comparison tables. But wait—there’s a way to have even more fun!

A few weeks ago, Information Architects Japan released the 2008 version of their Web Trend Map (still in beta, of course). They’ve taken almost 300 of the most influential and successful websites and pinned them down to the greater Tokyo-area train map. Yeah, a train map! There are not less than 21 lines: from the Technology Line to the Social Networks Line to the Politics Line.

Scout Labs is not yet on the map, but we’ve been thinking about our position on it. Obviously, we have to be on the Technology line, but we’re building something extremely complex. Our use of cutting-edge and advanced technologies such as Natural Language Processing, for instance should put us near the Innovation line. We think the best position for Scout Labs will be around Technorati, Snapshot and MyBlogLog. Nice neighborhood!

You can have a closer look to the Web Trend Map 2008 by downloading it in PDF on their website, and you can even order a printed copy.

The Currency of Influence

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The February issue of FastCompany magazine includes an article provocatively-titled, Is the Tipping Point Toast? about the work Duncan Watts has done researching influence. The article doesn’t exactly torpedo Gladwell’s hypotheses, as the title suggests, but it does argue that influence is a much more random phenomenon than Gladwell and a string of high-profile marketing gurus - not to mention our own intuition - would have us believe:

[Watts] has written computer models of rumor spreading and found that your average slob is just as likely as a well-connected person to start a huge new trend. And last year, Watts demonstrated that even the breakout success of a hot new pop band might be nearly random. Any attempt to engineer success through Influentials, he argues, is almost certainly doomed to failure.

Strong words, and not ones that marketing folks want to hear. But let’s back up and look at the two schools of thought at odds in this debate.

The Gladwell school (previously put forward by Ed Keller and Jon Berry in their book, The Influentials) holds that a relatively small number of elite and well-connected tastemakers is responsible for igniting the first small flames of buying or behaving that eventually spread like wildfire to become mainstream trends. Marketers like this model partly because it makes sense intuitively. We can all think of people in our lives who are consistently ahead of the curve with things, or whom we depend on as consistently reliable sources of information. It’s nice to think that if you can, as a marketer, put your message or product in the hands of these elite few, then they will do the rest of the work for you.

Watts, however, isn’t buying it. His research - a variety of computer models as well as social experiments using real people - doesn’t support the existence of this special class of powerful people. As far as he can tell, a trend can start anywhere and with anyone, as long as the marketplace is primed for it. This is borne out in a well-known experiment he conducted by building two identical online music communities where users could rate unknown songs from unknown artists. In one community, the users couldn’t see anyone else’s rankings. In the other, people could see how everyone else rated each song. He wanted to see whether word of mouth would affect the rankings in this second community, and whether any of the participants would emerge as the tastemakers.

In the first community, people rated the songs fairly evenly. But in the second community, as one would expect, favorite songs did emerge, as word of mouth took hold. Even more interestingly, in eight repeats of the experiment, different songs emerged as the favorites each time. For the most part, it wasn’t even close. The #1 song in one community, for example, was ranked #40 out of 48 in another. And there was no evidence to suggest that any participant in any community was significantly more influential than anyone else.

Watts’ experiment confirmed that word of mouth is powerful but, to the chagrin of marketers, it also seemed to show that it’s completely unpredictable.

So is the Tipping Point toast, like the article says? The most likely answer of course is no, and that both arguments are correct. There certainly are people who are influential by virtue of a large audience or expertise with regard to a particular subject. On the other hand, there are certainly many trends that started with seemingly random people.

Watts’ solution is to forget about trying to identify or engage with any supposed influencers and to focus instead on the masses. To this end he has developed a form of advertising with built-in sharing (and tracking) mechanisms designed to facilitate their spread.

Perhaps he’s onto something, but I think that developing a good mechanism for sharing is much less important than developing a good message that people will want to share. The “why” is more important than the “how.”

The currency, so to speak, of influence is the message. There is a science to crafting a good message, or meme. I like the formula offered by Chip and Dan Heath in their recent book, Made to Stick, which states that a good message is:

  • Simple
  • Unexpected
  • Concrete
  • Credible
  • Emotional, and
  • a Story

If marketers follow this formula, the chances that their messages will go “viral” are much greater, whether influencers are specific and identifiable elites or just random folks on the street.

The last piece of the puzzle is the marketplace, and this is something we’re trying hard to make more predictable too. Or, if not predictable, then transparent. Understanding what makes an effective meme is key to spotting them as they develop, but it’s still very difficult without reliable visibility into the marketplace. We’re aiming to provide this with some of the tools we’re developing, because this is at least as essential to the influence problem as attempting to identify some elusive special people at the top of the chain.

Malcolm Gladwell

I had the good fortune to hear Malcolm Gladwell speak at The Conference on Marketing held in Naples, FL earlier this week. His talk (refreshingly delivered entirely without slides) explored the concept of two distinct types of creative innovation: Conceptual and experimental.

Conceptual innovation, he argues are those bold, breakthrough ideas that are well articulated quickly and delivered into the world. Experimental innovation is the slow, iterative process of exploration that may happen over a lifetime before it’s gotten right.

Examples of conceptual innovators include Orson Wells, Picasso and Herman Melville. Conceptual innovators tend to peak early—often the value of their output decreasing over time. The highest price Picasso ever fetched for a single painting occurred at the age of 26. Work done in his 60s is valued roughly at ΒΌ of his peak prices. And we all know what happened to Orson Wells after Citizen Kane. Not much.

Cezanne, on the other hand, was an experimental innovator. He painstakingly painted the same scenes over and over again, evolving his genius in slow, iterative, baby steps. Cezanne peaked in his 60s, his later work valued at roughly 15 times work done in his 40s. Another experimental innovator, Alfred Hitchcock, explored the thriller genre again and again over a lifetime delivering perhaps his best picture, Vertigo, at the age of 59.

Gladwell argues that much to its detriment, today’s culture has lost patience with the experimental innovators. Musicians are now routinely dropped from the roster if their first single isn’t a blockbuster. Yet the traditional music industry is now in complete free fall according to Gladwell, because “you cannot run a creative business unless you have a combination of Picassos and Cezannes to create lasting value.” Long term, lasting value comes from a portfolio of ideas that include both the bold and groundbreaking as well as those that need iterative experimentation in order to mature.

Moreover, consumers form a very different bond with Picasso and Cezanne ideas. Picasso ideas get a lot of attention, but don’t develop lasting loyalty or significant influence (Friendster who?). Cezanne ideas may take a while to mature, but have much greater impact and create more lasting value over time.

The Sopranos, we are reminded, didn’t have much of an audience in season one or even season two. But with a little patience, HBO allowed the writing, the characters and even the audience to mature and the series has now arguably changed the face of in-home entertainment for a long time to come.