Wednesday, July 27

Sharing: It's Not Influence, Part 2

Dental InfluenceAs a continuation of Sharing: It's Not Influence, Part 1, it may be worthwhile to begin where we left off, with a parent of a child. Children are wild cards.

The relationship between a parent and child, in terms of how influence works, ebbs and flows over the course of a lifetime. It is not defined by any single action. It is not patently obvious when it occurs. It is not even necessarily predictable by any measure.

A parent, for example, might be able to order a child to brush their teeth one night, and some people might argue that is a form of influence. However, real influence takes shape over the long term and not by a single action. Real influence might manifest in a child becoming someone who has exceptional dental practices, assuming we could isolate the influences (which we cannot).

Even a persistent parent — one who insists on dental hygiene, one who provides proper role modeling, one who nurtures and educates — may not be the most influential in person in terms of dental hygiene. It could just as easily be the dentist, dental hygienist, grandparent, sibling, friend, associate, television program, personal experience, education, or more than likely — some collective of all these people and things, with each contributing some unknown percentage of influence.

On the other hand, a persistent parent — one who does everything mentioned above — is equally likely to produce a child who does not exhibit exceptional dental practices. In fact, they are just as likely to produce a child who hates dentists, seldom brushes their teeth, and consumes more than their healthy share of snacks, sweets, and soda pop. What's that about?

In this case, the parent may have no real influence, despite their proximity to the child. Or, conversely, everything that the parent contributed could have influenced the child after all, but in the opposite direction. Or, you never know, the parent may have had influence during a certain period of time, but then this influence lost out to other people or experiences.

decisionsConfused yet? You ought to be. Outside of providing a definition of influence, no one knows how influence works. Most of the time, people do not even fully understand what influences them — let alone other people as a temporal contributor to someone's decision-making process. Sure, we have some broad brush notions — reciprocity, commitment, social morals, preference, authority, scarcity — but none of those include mere persistence. The truth is we really know next to nothing about influence, which is why it makes life interesting.

Three factors that make influence infinitely complex.

1. Attention. Marketers invest most of their time on attention. There is some truth to the notion that you cannot form an opinion about something you don't know exists. This is where reach (eyeballs), frequency (impressions), and authority (perceived expertise) count somewhat.

The challenge, however, is to remind marketers that every impression doesn't count as 100 percent attention; most impressions capture a mere fraction of our attention, especially online. There are so many things competing for our attention, all of which are being filtered by arbitrary and random conditionals. And even then, this assumes we are online as our streams chug along.

2. Receptiveness. Marketers don't seem to care much about receptiveness. Most assume that everyone is interested in their product, service, or position. They assume their message is important. And they assume you care, doubly so if chance and circumstance have happened to bring you together for some reason.

They could not be more wrong. To be open to a message, people generally have to meet a select number of conditions that vary from person to person. They have to be interested, attentive, in a good mood, open to a new opinion, and in the market for whatever you're peddling. Most have a hard time comprehending that such periods of openness are subject to varied and limited amounts of time.

3. Collectiveness. Influence doesn't happen in a vacuum. Most marketers and measurement systems treat actions as if they happen in an isolated one-on-one setting, without ever considering that multiple messages, people, and experiences all contribute to our world view. Equally important, any one of them could support or detract from anything.

Consider the composite of almost any decision you make. Even when we don't consciously consider it, our brains have created a complex composite of stuff that we apply to any number of circumstances: subconscious memories, past experiences, personal values, personality types, current events, advice from authors, opinions from family, preferences of friends, insights from opinion leaders, etc., etc., etc. Depending on the person and their individual relationship to all of these people and things and perceptions, the whole of it will weigh on any decision. And chances are, we aren't even aware of it.

Claiming to understand influence is the biggest snake oil game ever.

This isn't an attack on marketing or measures. It's more of a testament to human social intelligence, for all its strengths and weaknesses. We cannot be read so easily, even in various groupings. This also doesn't necessarily preclude marketers from making educated guesses. We do that all the time.

But for anyone to say they understand influence so thoroughly that they can entice people to do anything online is a different kind of disposition. It also shows significant shortsightedness, because surely if you could read people down to the click predictability and purchase probabilities, the financial sector — specifically the stock market — would be a better match. At minimum, such talents would preclude asking for hourly rates or retainers. A mere fraction of a percent of the profits would be enough.

Monday, July 25

Sharing: It's Not Influence, Part 1

InfluenceThere isn't any question that the current trends in marketing, especially online marketing, are centered around "influence." And most marketing, advertising, and social media firms (and certainly online influence algorithms) are all looking at the same measure — that influence can somehow be tied to reach (the number of people exposed to a message), which is directly dependent upon how willing people are to share it.

A recent study by The New York Times paints a different picture. Sharing is not as tied to influence as marketers think. There are a gambit of reasons, and influence and/or persuasion is one of the least important. Maybe marketers have it wrong.

Highlights from The New York Times Study.

• 94 percent carefully consider if the information they share will be useful to the recipient.
• 84 percent share information any time it supports a cause or an issue they care about.
• 83 percent say reading other people's responses helps them understand and process better.
• 73 percent share information because it helps them connect to people with similar interests.
• 69 percent say they share because it helps them feel more connected to the world around them.
• 68 percent share because they want to give others a better sense of who they are.
• 49 percent say that sharing allows them to potentially change opinions and encourage action.

While 49 percent is still significant, promoting action (which marketers have defined as a key component of influence) is a low priority in terms of what people choose to share. It makes sense. Nobody is trying to influence the world by sharing cat videos and bacon jokes. And those who share such things are generally not working to become "influential."

More than likely, they like cats or bacon or the humor often associated with pics and videos about those subjects. Sometimes, people share for other reasons too. It could be something even simpler; they want to associate with or get the attention of the person sharing the content.

In communication circles, the latter is especially true. Many communicators operating in social media are keen on praising and thanking each other for sharing each other's content. It sometimes goes beyond reciprocity and more toward reward. But even more importantly than that, they might share a post, even unread, to create an association with a keynote speaker and therefore have a chance to connect with other people within that stream. (Conversely, sometimes they share a link to poke someone.)

In The New York Times study, they miss the point of their own research by tying sharing to influence (specifically, how to influence sharing) despite discovering the varied reasons for sharing in the first place. And it seems to me that attempting to turn sharing into a tactical game really misses the point.

Specifically, the study suggests appealing to audience motivations, keeping it simple, appealing to humor, earning trust, and making it urgent all increas the likelihood of shared content. However, at the same time, we have to wonder if consumers are misapplying their trust in marketers attempting to piggyback their message on what people really do care about. Maybe. But more importantly, is a masquerade true influence?

Influence is especially complicated; much more than marketers think.

One recent image that caught some attention was the new Google brand shoes. Their colorful, creative, shoe image generated a significant amount of interest. In looking at the people who shared the same visual, however, it became clear why the shoe pic was being shared.

• Some people thought they were cool.
• Some people thought they were ugly.
• Some people like or have an interest in Nike.
• Some people like or have an interest in Google.
• Some people liked the last person to share them.
• Some people have an interest in fashion stories.
• Some people just like shoes; they could have had any logo.
• Some people wanted to capitalize on the fact Google+ was trending.
• Some people have an expressed interest in search, social media, and technology.

Google ShoesThe list goes on. There are more than two dozens other reasons for the shoe pic being shared, which begs the question: how does any of it tie to influence?

And even if it did tie to influence, is that influence related to the shoe? Google? Nike? High-tops in general? Or maybe the person who shared it, without any consideration of why they shared it? What about other factors? Does it matter what kind of mood they are in when they first saw the image? What they had for breakfast? How their love life is working out? What kind of personality they have? Because they set some quota about sharing X number of a things at noon, every day? And to what end does any of this even matter?

Sometimes if you want to move forward you have to look back. Since the adoption of social media, generally, and social networks, specifically, people started sharing much more than they ever had before. And as the study revealed, they share more because their audience has expanded from the five people who used to gather around the water cooler.

And yet, it's the water cooler that marketers need to think about about when it comes to sharing, because none of what was shared around that watering hole ever made anyone appear influential. Not really; maybe sometimes.

The simple truth of the matter is that real influence doesn't take place at the sharing stage. It happens on a much deeper level, much like real advertising happens at a much deeper level. Anyone can create an advertisement that entices people to notice it, but not everyone can create an advertisement that resonates with people.

Likewise, you can share anything you want and convince people to share it. But actually having them adopt your view, lock step with no questions asked, is real influence. And when you consider everything that has to be just right to make that happen, it becomes pretty clear that even true influence is subject to hundreds of different things beyond the control of the influencer.

So maybe, just maybe, there is only one question you need to ask any marketer or social media expert who claims to be able to influence the masses online. Ask them about parenting. If they struggle with getting their children to watch an hour less of television, to eat their spinach, to get straight As, to brush their teeth between meals, etc. — then they know as much about influence as you do — almost nothing. Much like The New York Times study, which has some interesting findings but equally silly conclusions.

Friday, July 22

Emerging Markets: Ogilvy & Mather Bank On Video

videoAccording to Ogilvy & Mather, digital video is emerging as the fastest-growing form of interactive content distributed and consumed online. They are so bullish about it, they've launched a specialty video practice that will be led by Robert John Davis, a veteran of Rainbow Media and MTV Networks.

What makes it different than their full-service offerings? The agency is hoping Ogilvy's Advanced Video Practice will take engagement beyond the "viral" view, which is largely defined as number of views or impressions. Specifically, they are looking to track measurable engagements that place viewers directly into the sales funnel. In other words, outcomes.

"We created a unique offering at a time when even the major online video sites had not yet started thinking about how to maximize the value of their own content for marketers," said John Seifert, CEO of Ogilvy & Mather North America. "Our results with clients using the Ogilvy Advanced Video practice are impressive and we are now making it a distinct practice area to reflect the changes and opportunities in our business."

The practice focuses on several key aspects of online video: the creation of strategic content, video search engine optimization (VSEO), the production/distribution of video across multiple digital platforms, and measurement. None of that is exceptionally special, but it does demonstrate one of the first formalized approaches to move away from defining impressions and activity as "influence" and toward measurements that produce outcomes, including sales.

Robert John DavisBeyond that, Davis says that the practice is unique in that it will optimize clients' work from the very start before a frame of video is shot rather than attempt to optimize content after it has been created. While Davis and company believe this is a completely new approach to content creation, they are really borrowing the most common model employed by some publishers who determine "interest" before seeking stories.

However, they may be one of the few agencies thinking about this approach. And, interestingly enough, they are one of the few thinking about outcomes, especially as they happen online.

Where Ogilvy & Mather is right and where this thinking might lead.

The best part of the practice is clearly moving away from eyeball measures and considering what people are interested in before developing content. The latter is tried and true among publishers (although sometimes I wish publishers wouldn't do it), and will certainly give an uplift to advertising campaigns. The former is a concept relatively few agencies seem to embrace these days.

Where Ogilvy & Mather might do even better is to rethink what medium means online. Digital video is clearly engaging for audiences, even if it is limited by its linear presentation. But marketers need to shift their thinking away from medium all together.

There is no singular medium online, but rather a convergence of all media. Few, if any, agencies have fully realized that, leaving most to continually force content into a medium as opposed to determining the best format for the content and then assigning how various media might support that.

The Internet is everything. It's textual, visual, audible, conversational, portable, mobile, and interactive all at the same time. The best campaign practices that will emerge in the future will be those that recognize the environment, knowing what people are looking for and then delivering it without forcing them into a specific medium.

Still, the real takeaway today is that one of the largest marketing communications companies in the world is growing weary of impression counts and is committing to a new direction. That's great news for anyone tired of people who like to primp followers, viewer counts, and page views.

Wednesday, July 20

Making G+uru: Get Certified Now!

Google+ CertificationYou know it and so do I. Google+ represents a windfall for social media unlike any other social network before it. But even better than a windfall for social media, it could be a windfall for you too, my dear friend, because it's all happening right now!

Facebook? Forgetaboutit. Twitter? Grounded. MySpace? Neverheardofit. Quora? Flashinthepan. Google+ represents the promised land whereas all other social networks before it were merely practice lands.

How To Become A Social Network Expert, Overnight.

Just imagine if you could lock in all the juicy blog headlines about Google+ before Brian Clark. Or maybe host the first, er, second online training session before Chris Brogan. Or maybe you could find the holy grail of marketing (a true influence measure) before Brian Solis. Or maybe that is only the tip of the iceberg.

Somebody is going to become an expert. And the only question you need to be asking right now is ... is it going to be you? Can you write the most SEO threaded posts about G+? Can you deliver more technobabble about your feelings regarding the G+ network? Can you draw beautiful graphics that convince people you've learned to read minds using G+? What about a book? A specialized G+ blog? A dedicated presence on a different social network that only talks about G+?

The ideas we will give you are limitless. All you need to do is strike fast, strike first, and strike fancy. Did you get that? Those are three very powerful words.

Fast. First. Fancy.

Write them down. I'll wait while you do and then you can read why our Google+ program will change your life.

How Google+ Could Change Your Life, Forever.

Imagine what would have happened if you purchased land when the New World was discovered. You would own Manhattan — all of it! Imagine what might have happened if you were smart enough to stop in Nevada on your way to California in the 1800s. You would have discovered the Comstock Lode — all of it! Imagine if you were on the ground floor of development with Steve Jobs. You would be Bill Gates — all of it, er, him! Or just imagine what would have happened if you started a blog three months earlier than anyone else. You would be a social media guru!

It's true. Google+ represents the biggest, baddest, and most significant discovery since ... forever. And right now, every social media pro on the planet is jockeying for the lead position. Whomever gets there first — first workshops, first classes, first books, first anything — wins!

They know it. I know it. And now you know it too.

G+uruBut what they don't know is that we've developed an entire program that will be the biggest spoiler in social media history. Sure, with their imported networks, weak links, and seemingly endless amounts of time, they have the upper hand. But it's all for naught.

They might be very good at what they do, but one thing they don't have — and will never have — is an authentic Google+ certification. That's right. You can earn a Google+ certification in a few short days or perhaps hours if you are an overachiever.

Why is that important? Because all the other other guys that top lists and get the good rankings might be able to claim that they are social media gurus, but this certification will make you a social media G+uru. See the difference? It sends chills down my spine.

We're Absolutely Crazy To Offer You A G+uru Certification, Nuts.

This is your one and only chance to lay the groundwork to become a world-class resource to your customers, colleagues, and company. And, you really, really, really have to do it right now. Our program will catapult you ahead of the curve to be the expert that you deserve to be.

• Learn everything there is to know about Google+.
• Listen to oodles of speculation about what's next.
• Get the skinny on influence algorithms with G+.
• Understand the difference between circles and huddles.
• Frame your certificate to show your ultimate achievement.
• And much, much, much, much more.

In fact, there is so much more — some of it propriety intellectual property (patent pending) — that you will learn 2,397.5 things about Google+ in less than a week ... maybe a few days ... just a couple hours if you are a real go-getter.

That's 2,397.5 things about Google+ that we have learned in the first 250 hours of its launch, along with 158 bonus things that haven't even been introduced yet (but they will, probably, sooner or later). Tempted to enroll? Good! Because my HP Photosmart 8750 is already bustling with activity as we print 10,000 G+uru certificates and the only thing missing is YOUR NAME!

How Much Does It Cost? Much Less Than Its Value, Absolutely.

We are so convinced that the G+uru certification will be so invaluable that we won't even post the price for fear of breaking the Internet as this news gets out. I'm serious. This offer isn't going to go viral — it's going pandemic!

So how much do you think it would be worth if you were on the ground floor as a senior certified G+uru instructor now? Exactly. It's absolutely priceless.

G+uruIt's so priceless that in lieu of a certification enrollment fee, we're going to offer the first 500 people the opportunity of a lifetime. We will waive the enrollment fee in exchange for just two or three percent of your lifetime income after you become a G+uru.

Right. This program is so hot that we're willing to gamble on you. Do any of the other guys do that? No. Do they put their money where their mouths are? No. Do they throw in a free T-shirt? Only sometimes.

That's right. It's always the same song and dance with them. Pay once, pay first, and regret it all later. This dance is better. Pay later, pay forever, and never look back.

So what say you? Are you in to take over the Web? Good, because before I even published this post, three people signed up. It's not a revolution, it's an insurg+ence.

This post is satire, with nothing ill-tempered meant to any good sports mentioned. However, I do hope this rings as a true cautionary tale for some. Google+ is a tool. It seems like a very good tool too, just don't forget to use the one you were born with before reaching for your wallet.

Monday, July 18

Communicating Poorly: Politics Sack Confidence

budgetA new study by TNS, which is one of the world's largest research firms, reveals that 87 percent of Americans with $500,000 or more in investable assets are increasingly concerned about the deficit and its potential impact on retirement funds.

Although about 40 percent said they would pay higher taxes to offset changes to Social Security and Medicare, they are even more concerned about the growing deficit. In fact, 40 percent would accept changes to both Social Security and Medicare if it would help reduce the deficit. Their sentiment is shared by a growing number of Americans.

• 43 percent feel the current state of the economy will jeopardize their retirement plans.
• 40 percent plan to reduce the amount of money they spend compared to last year.
• 56 percent are concerned that the U.S. government may default on its debt obligations.
• 60 percent do not think the U.S. government should increase the federal debt ceiling.

Along with increasing concerns about the long-term prospects, investor confidence has dropped 11 points to its lowest level in about a year. Joe Hagan, senior vice president of TNS, speculates that increased stress and discomfort among investors will continue to cause declines in consumer confidence.

In fact, that has already happened. Confidence is lower than in 2009.

Marketers share similar concerns over the economy.

According to the Financial Times, investors are not alone. A recent IPA/BDO Bellwether survey reveals more companies in the United Kingdom — about one-fifth of those surveyed — were trimming advertising budgets. Even those that are not trimming budgets are looking at the remainder of the year with caution.

“Our view is that the economy may have slipped back into a slight contraction in the second quarter," Chris Williamson, chief economist at Markit, told the Financial Times. "This confirms that picture of very little growth in the economy. We expect marketers to remain cautious over the rest of the year.”

cutting budgetsThe United Kingdom is not alone. Marketers are cutting budgets again. This time it seems the decision has less to do with spending cuts as much as it relates to consumer confidence. While some people are attempting to look at the positive side of budget reductions, the more recent economic shakes have less to do with budgets than marketing executives reacting to a marketplace with lower returns on marketing investments.

While it is often prudent to increase marketing during a recession (because ad rates are cheaper and competitors are spending less), marketers are more concerned this time around because consumers seem frozen. Those who have limited or even disposable income are not spending it, believing they will need it in the face of increased taxes and budget deficits or default (both of which weaken the dollar).

What's the best course of action for the balance of 2011?

While cutting marketing budgets may seem like a viable option, it would be more prudent for most companies to re-evaluate their marketing strategies — focusing on long-term brand and relationship building as opposed to immediate hard returns on investment.

Keith Turco wrote a column for Forbes recently, attempting to shock a few readers away from what he attributes to analysis paralysis. He more or less believes that companies are not committing enough of their marketing budgets because they are too busy trying to make every cent trace back to a sale.

Analysis paralysis is certainly part of the culprit, but it is not the only factor. Market research is finding that more and more people aren't ready to buy because the political climate has remained heavily uncertain. This isn't isolated to any segment of the market, but rather the entire world. In terms of changing confidence, some economists see an end to the debt ceiling debate in Washington as the only chance for a reversal. (Others say it is the continued broken promises to ease the burden of unemployment.)

Kurt VonnegutBut even if it doesn't, marketing ought not to care so much. The simple reality is that the economy will eventually climb out of the recent hole it has been forced deeper into and consumer confidence will rise with better leadership. (And if it doesn't climb out, then it hardly matters how anyone plays their cards anyway).

And thus, marketing departments that shift tactics toward long-term strategic models will be able to better position their companies on an economic upswing than those who treat their marketing budgets like yo-yos tied to economic forecasts.

Or, in other words, when economic outlooks improve, any company would be better off with relationships in the wings than those who attempt to restart at the first signs of life with a very different kind of consumer. Changing consumer confidence is psychology.

Friday, July 15

Increasing Rates: Netflix Actions Speak Louder

NetflixThe writing was already on the wall, but it wasn't writing that sent the real message. Netflix doesn't want to be in the DVD shopping and shipping business anymore. If you want to hold a movie in your hands, you are better off visiting your local Redbox.

The new price increase reflects its decision. Never mind those sensational headlines that scream 60 percent increases. The new plans are pretty straightforward. People can choose unlimited streaming (no DVDs) for $7.99 a month, unlimited DVDs one at a time (no streaming), for $7.99 a month (Blu-Ray is $2 more), or both services for $15.98 a month (with a broader selection).

If you're nutty, you can have as many as four DVDs out at one time. The price for that service is $34.99 per month.

Some people are complaining, saying that they will dump the DVDs all together and Netflix will lose money. No they won't. As soon as the company can dump DVDs and Blu-Ray, the better. The entire point of the price fix is to force you to make the choice that Netflix has already made. CEO Reed Hastings has said it.

"We are now primarily a streaming video company," Hastings said.

Initially, Netflix investors couldn't be more thrilled (although some started selling as customers pushed back). They had every reason to be thrilled, because unless you cancel the service, there is a plan. And the plan looks pretty great on paper. In fact, there are more changes that Netflix is looking at, including scrubbing the household model customers are used to and moving everything to an individual member basis.

"When our focus was primarily DVD rental, we talked about our opportunity in terms of households, in particular the number of households with broadband access, which is more than 70 million households. Another way to view our potential opportunity is to consider the number of households that subscribe to home entertainment, which includes cable and satellite subscribers, a market estimated at about $68 billion in annual revenue. In either case, we were describing a very big potential market, giving us a lot of room to grow.

More recently, as streaming has become central to our business, we believe there may be an opportunity to change our focus from a household relationship to an individual relationship, since streaming is viewed on personal devices, such as phones, tablets, and laptops, as well as on shared large screen televisions. As we think about this long-term shift from a household to a personal relationship, we are starting to think internally that our opportunity could be viewed as the number of mobile phone subscribers, a group that both invests in electronic content and can afford $7.99 for home entertainment. Needless to say, that is a large opportunity.

The evolution toward individual memberships will take time, and we are still thinking about how to best do it. One option could be to allow an account to add additional concurrent streams (using the analogy of our DVD business, it would be like choosing a higher-priced plan that allows a subscriber to have more DVDs at home). Or it could be that there is a price point that would encourage multiple accounts in one household. In either case, our long-term goal is to evolve the Netflix service so that it feels more natural to have a personal account. We will also be working on broader Facebook integration which we hope will further the notion of personal accounts." — Netflix, July 14, 2011


Every communication counts when choosing a service provider.

Personally, this is one of the fundamental flaws with most media "rental" agreements. The companies in charge are empowered to rescind their contracts, raise rates, and change services any time they want. This extends to not only Netflix services but cable and satellite companies too.

Netflix ScreenBut where Netflix really stands out is in its blatant mission to not only increase its rates today, but tomorrow too. It has been sharing this news with investors for some time; customers not so much. The Investor FAQ says it all. They want to manipulate customers into streaming only and then divide their accounts among individuals inside the household.

More than likely, customers will do it too. Sure, there will be some grumbling, but entertainment addiction is alive and well. Most of us gave up free broadcast for upwards of $100 or even $200 a month services (plus mobile) and we still purchase DVDs or their digital equivalent anyway.

At the moment, Netflix is hoping you won't notice the above graphs and it expects the colorful commentary to die down. Maybe it will. Maybe it won't. Personally, I'm split. But then again, I'm not a Netflix customer.

Don't get me wrong. The communication was rotten. Netflix could have phased it in much like it plans to phase in personal accounts over household accounts, making it so people don't notice so much and "feel more natural." But at the same time, the only recourse Netflix customers have (short of organizing with stated objectives) is to dump the service en masse.

I don't think they will. I think most will do exactly what Netflix wants. Netflix wants to get out of the mailing business, which costs considerably more than its streaming arrangement. So, if you dump mail, you're not really protesting at all — you're doing Netflix a favor. That favor isn't nearly as big as the favor you will do when everybody in your home wants an individual account, but this is clearly the first step to make it happen.

It's a plan that is, very literally, worth billions for a company that suddenly makes people reminisce about Blockbuster. But for communication pros, the real lesson goes back to not mixing your investor and customer messages. Everything is public nowadays.
 

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