Author Archives: Riku Vassinen

Oct 18 2012
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Digital Strategy, Social Media

Why Would You Pay for Your Facebook Status Updates?

Facebook piloted the promoted post –format already last spring and now rolled out the feature in US in the beginning of this month. Basically it allows normal Facebook user to get more exposure for her post when paying money for it.

Sounds great from the Facebook standpoint. They are in desperate need for new ways to monetize the vast user base. The initial cost for rolling out this advertising format is probably quite low. And it might be hit. Judging from the reality tv shows, there are lots of celebrity-seeking self-promoters around wanting the attention at any cost. On Facebook product site for the Promoted posts, there is linfo about practicalities of the function. One crucial piece of information is however missing:

Why would anyone want do that?

The example Facebook uses is engagement announcement. But I find it hard to believe why anyone would pay for that? If you really have to make sure that people now that you are engaged, there other communication vehicles to ensure that message goes through. Also the virality of those announcements is already high and it is likely that you get hundreds of likes and comments for announcements like that naturally. How many likes will it take that you are satisfied? Of course the situation might change if Facebook decreases the reach of non-paid status updates. That has already happened with brand pages.

There seems to be only one inevitable result from this. Your newsfeed gets bombarded with marketing messages. The promoted post function seems suitable for only small-business owners, politicians, bloggers, company spammers commmunity managers, event organizers, social media con artists consultants and other narcissistic egoists. For those people, the promoted post will probably be good addition to advertising toolkit among other Facebook advertising solutions.

What will it do for the user experience?

There will be municipal election this weekend in Finland. Thus I have avoided checking my newsfeed lately because I just cannot bear all that election advertising from all “Facebook friends”. The newsfeed is almost unreadable. Especially because I do not currently live in Helsinki and I am not even eligible to vote. How worse the situation will be when these annoying self-promoters can pay for more wider reach for their propaganda?

Or maybe this is just clever marketing and the next product Facebook announces is: Unpromoted Post. By paying certain fee, you free yourself from those self-marketing promoted posts.Facebook Premium, without ads?

Someone might pay for that as well.

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Oct 17 2012
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Advertising, Business, Marketing Strategy, Social Media, Strategy

Building a Successful Failing Company

Each year over 30,000 consumer products are launched. 95% of them fail.
The failure rate of TV shows is about the same 95%.
75% of advertising campaigns are failure.
(Probably the real rate 95%, but the years of crafting those Effie entries probably helped to shape that number down)

The conclusion is clear. We are doomed to fail. Or actually we have planned ourselves to failure.

Companies, who do not tolerate small failures, end up doing big ones. Perversely companies are obsessed of micromanaging the staff and punishing for minor mishaps, but eventually end up messing up themselves big time. There is too much strategy & planning, not enough doing (ironically coming from planner). The trick is to fail often and fast to avoid the big failures and to ensure big wins. Actually it is not about failing, but just doing things.

Four ways to encourage doing actual things and failing fast in your workplace:

1. Taking ownership of the ideas and making it a habit
The problem with the companies is not the lack of ideas. Not even good ones. The problem is that there is a lack of ownership of the ideas. Throwing ideas is worthless, planting and cultivating them priceless. That is why Orange idclic works. You do not just throw an idea around. You get the opportunity and responsibility to build that idea.

I remember time selling digital ideas, when clients only wanted TV ads. We always presented those ideas, even though client had not asked for them. First they were irritated, then amused, then interested and finally buying them.

Selling idea is about creativity, vision & perseverance. Mostly the latter.

If you make the habit of producing five presentable ideas to improve your business (or your client´s business) every month, you have presented 60 good ideas by the end of year. I recommend changing the client or the team, if you have not sold any of them.

2. Something Concrete/Month: Test & research with real audience
If after numerous focus groups, strategy workshops and numerous alternations to body copy you still end up messing the project, what is the real risk of just trying stuff out? Also company, which gets its Facebook status updates approved by ten different managers, cannot really be agile innovator.

Your website and social media channels give great opportunity to test things with real people before you commit millions of dollars behind certain idea. When you commit to test one of those ideas every month, you have done 12 prototypes a year. On a worst case you have 12 small failures. On the best case you have done couple of breakthrough successes.

3. Reaction fund: Show me the money to show that you care
World does not spin around your strategy. Your strategy spins around the world. And that world is changing rapidly.

“Ability is little account without opportunity”
-Napoleon Bonaparte

Every company should have reaction fund to react to current events. Something relevant happens in the real world, which opens the opportunity for your company. When the opportunity rises you should have budget to react to it. Whether you produce event, application, flashmob, social movement does not matter, reaction and taking the action is the key. The designated budget is also a proof that your company is serious about that agile innovation.

4. Skunk works Exchange program: Spreading the change to whole company
Big change starts with small movements. That is why it is crucial to start with task force, skunk works or lab, with progressive individuals who are hungry to change the company.

The challenge is to spread their impact to whole company. If people in skunk works are the only ones doing the cool stuff, it helps quite little the struggling company around. Thus every member of that skunk works should be member for only limited time. When revolutionizing the company for appropriate time in that small unit, they would be located all over the company in different units. This works also other way around, task forces giving new meaning to bored employees. Think of it as a work exchange, where you do not move geographically but mentally.

The future is uncertain and the failure is unavoidable. It is how we seize the opportunities and try out new things, which determines our success.

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Oct 16 2012
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Advertising, Business, Digital Strategy, Marketing Strategy, Social Media

39.045 KM: The New High for Advertising

“Sometimes you have to go up really high to understand how small you are.”

Felix Baumgartner not only made the world´s highest parachute jump. And he not only did the record height manned balloon flight or had the greatest free fall velocity.

He is also the future of advertising. Or actually, Red Bull is.

Red Bull made the jump possible with their Stratos-project. Stratos is a textbook example of the new marketing gathering them millions worth of free publicity. When you only have your brand as the differentiator from the competition, you have to change the traditional rulebook. Also if the marketing is pretty much your only cost item, should you do something that stands out with all that money?

Why you should jump from 39 km to succeed in advertising in 2012?

From advertisements to acts.
Once upon a time, there used to be brand films. These long (at least longer than regular tv-spots) films were on top of every advertising creative wish list, because they let you capture the brand essence and flex your creative muscles. Some relics still mourn for the brand films.

The world´s highest parachute jump is the brand film of the next generation.

We cannot get back to the times of the brand film and the one-sided broadcasting era. If we, the advertising industry, cannot make the shift to do acts instead of ads, we will vanish. And deservedly so.

Many marketing managers and advertising executives throw the term “lifestyle brand” around too carelessly. Whether it is mobile phone, toothpaste, ice cream, jeans, hemorrhoid creams, you name it. The brutal truth is that the majority of brands are just products, which have merely functional value to audience. There are less truly inspirational brands than brand managers in the world. Red Bull is a lifestyle brand, build around extreme experiences. Can you really say that your brand is lifestyle brand compared to Red Bull?

The role of traditional advertising is totally miniscule for Red Bull. Judging from their cartoon TV ads, traditional advertising might even be counterproductive for their success. They have build their brand by events, strategic sponsorships and great content produced from those two. This content is mainly distributed digitally.

Before the death-defying jump, there was also a double-win on Sunday for Red Bull F1 team. Red Bull does not just stamp their logo to everywhere to fulfill their sponsorship duties. They use sponsorship as a strategic marketing weapon.

Great brand is media.
The key to successful content marketing is not producing content. The key is to produce interesting content. If your brand wants to really be part of your audience lives and be that “lifestyle” brand, you have to create content which is up to par (or as in Stratos, even over) with every other content your target audience consumes. Being OK in “advertising standards” is not enough, because people could not care a less whether you are brand or not. There is no handicap league for advertisers.

If you go visit Red Bull website, their content about extreme sports and music beats many major media sites. If you build a media, it takes longevity and it requires quality. You have to have clear picture about what your brand represents and act upon it. The parachute jump was totally on Red Bull brand. If your brand aspires to be media, you cannot only be content agregator and rely only on your partners. You have to be an active content creator as well.

Digital is natural part of the winner brands.
When you understand your target audience, the digital executions are not the challenge. You do not need social media expert to tell that you should broadcast the jump in YouTube. Or that you should have hashtag dedicated the event. Great brands master digital presence efforlessly, because they understand their audience.

Digital is air, you either breathe or die.

You might not be able to fund the world´s highest parachute jump. It might not be the right for our brand either. You should still find ways to become truly part of the lifestyle of your audience, instead of just being an interrupting nuisance for them.

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Oct 15 2012
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Marketing Strategy, Planning, Social Media

Gangnam Style: The Evolution of Popular Culture

Click the video, if you have not yet see this after 462 252 104 (and counting) views on YouTube. Otherwise proceed to text below.

It has affected South Korean tourism and the stock values of software firms. Even F1 drivers are doing it.

No doubt about it, Gangnam style has been the biggest popular culture phenomenon in 2012.

What it tells about the current state of popular culture?

1. There is always demand for a catchy pop song.
You can debate about the artistic and musical merits of PSY, but you cannot deny that structurally it is typical and effective pop song. All the elements of the perfect summer jam are there: catchy chorus, shout-outs to sexy ladies and the signature dance which you can perform even after few pints. Gangnam Style is just the Macarena for 2012. Or Ketchup Song, Lambada… You catch my drift.

This brings us also to the important point about YouTube. The Internet might have revolutionized the distribution and the traditional business model of the music. It has not as much changed people´s taste for music. Although major record labels are struggling, there is still huge demand for mainstream music. If you watch top 10 of the most watched music videos in YouTube, they are all from major label artists. PSY was huge in South Korea before Gangnam style and hardly a rookie, having released his first album already in 2001.

Gangnam style would probably be not as big hit without YouTube, but it would have been hit nevertheless. You will always have gatekeepers in popular culture. The gatekeepers just might not be the same ones as before.

2. The cultural focus shifts to Asia
If you watch any new Hollywood movie, you are more than likely to see one (or all) of the following things:

a) One or more of the characters are Asian-origin (i.e. wife of Bruce Willis is Chinese in The Looper)
b) There are cultural references to Asia (i.e. Chinese gambling dens in Premium Rush)
c) The film takes place in certain Asian country (i.e. Bourne Legacy scenes in Manila)

The main reason for this is naturally the rising importance of Asian countries as the target market for Hollywood movies. As a movie producer, you have to take Asian countries in account to maximize profits and to secure investments in the future.

This cultural exchange is not unilateral. As the western companies concentrate more on Asia to keep afloat, especially the western teenagers consume more Asian culture to find their own thing and to differentiate from their predecessors.

Peculiar thing happened few years back in Finland. The teenagers started to dig everything Japanese. Whether it was J-Pop, Manga, Anime or the weird costumes. The cultural glue was the interest to everything Japanese. The same person might go to see heavy metal and dance act on same week, as long it was Japanese.

This goes against of my traditional view of how subcultures emerge. As a teenager I consumed popular culture that was majorly from USA. However it was more about certain genres than geographical areas.

K-Pop phenomenon was already making major waves before Gangnam style and something big was bound to happen. Gangnam style was just the most western-friendly, uniquely odd and the catchiest song to break into global mainstream. As a western listener you do not necessarily know where Gangnam is, or what oppa means but you can nevertheless get into singing the chorus and doing the horse-dance.

3. Ready for remix, build for parody, made for mash-up.
There used to be app for that. Nowadays there is Gangnam Style –parody for that. Even in North Korea. Here is the Singaporean version:

With current digital tools and democratization of technology, it is easier to become active culture participant. Parody is the highest form of flattery. If it has not been remixed, it does not exist. Gangnam style is the perfect song to make mash-ups on. As the money from music business now comes from different sources than traditional record sales, you have to do more than just good songs. You have to create miniature social movements, where people can participate.

Also our view of idols has evolved. When before the idol was someone you could not reach, nowadays you can just tweet to your favorite artist. And as record sales decline, the probability is just getting higher that the idol will actually respond as well. Reflecting to that PSY, who is self-proclaimed “fat father of two”, might just be the perfect idol type for the new century. At least compared to the polished superhumans of traditional broadcast era.

Will PSY be able to match the success of Gangnam style?
Most likely not.
Has he already left a permanent mark in popular culture?
Most likely.

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Oct 14 2012
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Advertising

The First Thing One Must Do to Succeed in Advertising

The first thing one must do to succeed in advertising is to have the attention of the reader.

That means to be interesting.

The next thing is to stick to the truth, and that means rectifying whatever’s wrong in the merchant’s business.

If the truth isn’t tellable, fix it so it is.

That is about all there is to it.

-John E. Powers

John E. Powers has been called “the father of honest ads” and he was also probably one of the first full-time copywriters. His tie copy for John Wanamaker is still effective, funny and, especially, true.

“They’re not as good as they look, but they’re good enough — 25 cents”

There is still lots to learn from John E. Powers.

Source: Winning The Story Wars & http://www.biztactics.com/bullet-john-powers.php

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Oct 13 2012
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Uncategorized Quote

Back in the day, the time before some lipstick salesman wandered in and bought the company and corporatized it, it was easy to make comics.

You had an idea, an editor said “Sounds cool. Why not?” and you did it.

Now there are pitches and proposals and committees and a character like Longshot would be so tangled in red tape from it all he´d end up consigned to the reject bing long before he´d ever be given a chance to jump up and stick to a wall.

Sigh.

-Ann Nocenti

Ann Nocenti is the creator of one of my favourite childhood comic heroes Longshot and a longtime contributor for Marvel Comics. She is most famous for her work for Daredevil & X-Men. Recently she has taken the task to reinvent Catwoman for DC Comics. Above quote is from the Longshot compilation.

Sounds cool. Why not?

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Oct 11 2012
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Digital Strategy, Social Media

Endorsements: LinkedIn Likes?

During last couple of weeks, there have been sudden surge of people adding their business skills in LinkedIn. The main reason for this is that  you can now do one-click endorsement of particular skill of your LinkedIn contacts. It is as easy and probably as worthwhile in professional way as Facebook like in less-professional setting. I don´t know will the amount of endorsements affect your employment opportunities in future, unless you apply to become a social media manager.
More than just another way to flex the virtual vanity, endorsements are a great example of smart “nudging” from LinkedIn to make people use their service more. More complete LinkedIn profiles, the closer will be the day that your LinkedIn profile has completely replaced traditional CV.
LinkedIn Endorsements is a great example of the power of social recognition and how it can be one of the most powerful incentives you can have. Overall LinkedIn has been build brilliantly combining nudges, gamification and social elements to make people make their profile complete and spend more time with the service. Naturally that helps LinkedIn to better monetize their service with advertisers. And while everyone has been concentrating on hoopla around Facebook, LinkedIn has been doing their thing more quietly and arguably more effectively (at least adjusted to user numbers) as well.
And thanks for all the endorsements I have gotten in LinkedIn. I probably thank by endorsing you back.
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Oct 10 2012
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Planning, Strategy

The Illusion of Hot Hand

NBA JAM
I have been playing basketball nearly all my life. I also play in two teams here in Singapore and the quality of the basketball league and how good it has been organized, has been really positive surprise. Not that positive surprise has been my shooting game, which has been uneven to say at least.

I have not had “a hot hand”, like they say.

One of the common beliefs in basketball involves streak shooting: if you have made your last shot you are more likely to make your next shot. Those who have played NBA Jam in nineties, remember that the player was “on fire” after three straight shoots.

This “hot hand” is purely a myth.

Good last shot does not predict your next shot in any way. Actually you might be more likely to miss it. Numerous studies prove this point. Amos Tversky and Thomas Gilovich went through years of NBA team Philadelphia 76ers statistics. The conclusion: Every field goal attempt was its own independent event. Jay Koehler and Caryn Conley got the same result by observing NBA three-point shooting contest.

Ok, now I know the facts. Do I believe in hot hand?

You bet, I do.
(Like actually 91% of serious NBA fans)

“Hot hand” is not based on actual statistics. It is in your mind. When you have the feeling that you are “on fire”, you tend to play better. Because simple truth in basketball is: the more you shoot, the more you tend to score. Average field goal percentage in NBA is little bit below 30%. That means that even the best players in the world miss about two out of every three shots. You need to have the illusion of “hot hand” to keep yourself positive when missing all those shots.

Winning streaks do not limit only to basketball and other sports.

People try to find patterns in random events where they do not exist. I have heard from numerous ad people that when you start losing pitches they always come in three. The reality is that every pitch is its own independent event. If you feel that you are on the roll, the setbacks feel just random mishaps. And if you feel that you have “cold hand”, every loss fulfills your prophecy of losing streak. So to succeed in business, it is important to try to be in state of streak shooter and then go with that emotion. And when you encounter losses you have to remind your rational self about the statistics and just try again.

There is not anything wrong to believe in “hot hand”, just do not fall into superstition when you are not “on fire.”

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Oct 09 2012
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Business, Strategy

How to Become a Thought Leader

Yesterday I wrote about the inflation of the term thought leadership. There is no magic potion for becoming a thought leader, but you can dissect three characteristics of a real thought leader.

Three characteristics (3C´s) of a Thought Leader

Credibility
Whether it is grounded on heritage (IBM, GE) or innovation (Zappos, 37Signals), you have to build your credibility on real actions. There is no shortcut for it. It requires hours of work and a fair amount of blood, sweat and tears.
You cannot sugarcoat business mediocrity with great writing or flashy marketing. Good (or actually rather bad) example of great marketing over not a lot of substance is BP´s Beyond Petroleum. That thought leadership campaign looked quite out-of-place with their 2010 oil spill in Mexico and continuous neglect of safety measures.

Challenge
There is no thought leadership, without radical thinking. Thought leaders dare to challenge status quo. If you aspire to be thought leader, you should not be afraid of confrontation and differentation from the mass. Leaders are not always right, but they have a clear point-of-view and direction where they are heading. Richard Branson is a thought leader, because he dares to go against the grain. The successes and failures of his ventures are secondary. He is thought leader because he is not afraid to try and rebel against traditional ways to do business.

Commitment
The thought leadership companies commit to every piece of their business passionately. The core of successful business lies in almost maniac drive to understand your customers better. This drive correlates highly with great marketing activities. Thought leadership initiatives fail because people are not committed to them. When you are forced to write a blog post, you resent the task and produce a bland sales pitch. If you are changing the world, you want to tell about it and then writing that blog post is more of an honor than a dull task.

It is wrong to say that it is now easier to become thought leader. It is always hard task and requires dedication and determination. No shortcuts.

That being said, the rotation of thought leaders is faster than it used to be. Thought leader today, gone tomorrow. Especially the technologic disruption opens up possibilities for the brands and individuals to become thought leaders in their business. Provided that they are committed to change the world and challenge the status quo.

Thought leadership brands gain credibility by challenging the norms and committing to their mission to change the world.

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