Here’s the plan: Publishers, take every banner ad off of your site. Not just the ones you stuffed at the bottom on the page that nobody sees anyway. Remove each and every single one. Replace those small, ugly boxes with a full-screen, 30-second video interstitial to be displayed on every third page viewed per customer session. Sell the value of that video ad to marketers based on the quality of your content and the strength of your audience. Now, repeat after me: The ads do not need to have a click through to the advertiser’s website. The ad can be skipped by your reader/viewer after 10 seconds of play time.
What if we follow Augmented Reality to it’s ultimate conclusion. Daniel Suarez’s vision of a layer of information and meta-data transposed upon the physical world may be the science fiction of last year but we all know if Google’s Project Glass gets it’s way, it’ll be here soon enough.
But what if we took this further? What if the commercial pressure to monetize our new experience pushes the development to it’s ultimate conclusion? What would that world look like? Behold.
I am a bit surprised that there was not more buzz around Doc Searls’ recent article, The Customer is God, where he re-hashed his argument for a new world of merchant/customer relationship that he has been noodling on for the past several years.
Since the Industrial Revolution, the only way a company could scale up in productivity and profit was by treating customers as populations rather than as individuals—and by treating employees as positions on an organization chart rather than as unique sources of talent and ideas. Anything that stood in the way of larger scale tended to be dismissed.
The Internet has challenged that system by giving individuals the same power. Any of us can now communicate with anybody else, anywhere in the world, at costs close to zero. We can set up our own websites. We can produce, publish, syndicate and do other influential things, with global reach. Each of us can be valuable as unique individuals and not only as members of groups.
The internet has enabled intimacy at scale. It is now possible for each of us to reach out to almost anyone, anywhere in the world and have a direct conversation. Doc argued in his seminal book, The Cluetrain Manifesto, the internet is the great dis-intermediator. We have seen it route around the middleman in every industry it has touched.
Today, consumers are moving away from commercial enterprises to tell them what to buy. They are increasingly turning towards their social networks for recommendations. Instead of a visit to a cookie-cutter mall, consumers are turning to more personal forms of curation which gives rise to sites such as Yelp, Etsy, or Pinterest.
The next phase in the evolution of consumer behavior which Doc has been banging on about is the era of the Vender Relationship Management (VRM). In this world, the consumer will maintain a profile of items which they are open to purchase. In much the same way we maintain a Facebook or LinkedIn profile as our signpost of our interests and desires, the VRM profile will be a strictly commercial profile, a public wishlist outlining items we hope to purchase complete with details of price and delivery options. Like the old mailbox flag that you would flip up on the country road to signal to the mailman that you have a letter for them to pick up, you would manage your VRM profile as a way to signal what type of offers they are open to evaluating and giving your attention.
Flipping the advertisement model on its head, the VRM arrangement channels only those advertisements that are guaranteed to be relavent to you and puts the power of control back into your hands. In this world there is no need to be tracked because you explicitly tell the ad networks exactly what you want. No more wasted impressions competing for your attention. In this world, advertising evolves from marketing to a sales channel.
The move from a “stalking economy” where vendors are always following you around trying to figure out what you want to a world where we clearly state what we want is already happening. Kickstarter is an example of this new “intention economy” where people directly signal what they want by actually pledging money towards products they’d like to see built.
Keep an eye out for companies and technologies that enable this direct consumer intent. These will be the ones that are on the right side of the wave. These will be the ones that succeed.
Over the weekend I posted a question wondering why no one has done what Spotify has done for music and Netflix for movies. The fact that no one has stepped in to offer a bundled subscription for another “old media” type, the magazine & newspaper, seemed like an opportunity to me that made economic sense.
Yesterday, Next Issue, a company that had been doing exactly that on the Android platform jumped up with the launch of their iOS app which brings together all you can read from almost 40 magazines, for one monthly flat fee.
The publications are from their investors Condé Nast, Hearst, Meredith, and Time (full list of magazines on offer and their parent companies are listed on paidContent). Their basic plan is for $10/month while for $15/month you get access to additional “premium” magazines such as The New Yorker, People, and Sports Illustrated.
Now that the solution is here, would you go for it? The reception seems mixed. A shortcoming that my colleague at GigaOM has noted is the lack of social features. The web has forever changed the way we read. Both in how we discover what to read and again in the way we share what we’ve read. I think I saw Dave McClure wearing a shirt once that said, “If you can’t share it, it doesn’t exist” – this is the future, this is the way to growth.
It’s not clear to me how Next Issue will be able to roll in social into their subscription-only product. As with other paywalled sites, sharing of Next Issue articles will not work unless they get creative because subscribers will know that they’re sending out dead end links to their non-subscriber friends.
Social sharing will work if enough people can access what you’re sharing so a network effect kicks in. This is starting to work with Spotify because they have a free, ad-supported subscription so all you need to do is register and install the app to listen. The hope is that after enough listens, you’ll get hooked on the product and up-sell to their ad-free subscription product.
Without sharing, there will be no social discovery. Without social discovery, you’re stuck with what’s on the newsstand shelf and how the articles are presented to you by each publication. This is the way it used to be, this is the way to stagnation.
So how can Next Issue grow it’s subscriber base so that social sharing can kick in and drive further subscriber growth? I suggest two options.
1. Create an ad-supported freemium client that lets those that follow links put out by Next Issue subscribers get a taste of the product. They have a 30-day free trial but it requires a credit card, that is too high a barrier, it needs to be totally free and dead easy to install. This is probably not an option as there is almost no reason to convert to a paid subscription if such a free product exists. That leaves the next choice,
2. Do a deal with a major brand such as American Express or Microsoft to underwrite enough subscriptions as a membership benefit so that you get an install base large enough to encourage broad sharing between subscribers and a community of “haves” that are sufficient to encourage those without to sign up either with the sponsor or Next Issue directly.
The future is with sponsored subscription bundles. Not only for Next Issue but for Spotify and Netflix, all these services will take off when the media buyers put together deals which pay for these memberships. I have a bunch of United Airlines miles but would much rather use them to pay for my Spotify subscription than another cramped trip in a tin can on an airline.
Sponsored subscription bundles. That’s my big bet. It’s the future of the subscription business model and the future of brand advertising.
Twitter extended it’s partnership with American Express and building on the campaign to tap into support for local businesses with the rollout of Twitter Promoted Products. It’s a pay per-click model which can be limited by daily spend so there will be no surprises.
The video is one of the nicest product videos I’ve seen. It’s clear, concise, and speaks directly to the potential customer. The video assumes a certain familiarity with twitter so will attract only the well-versed merchants that will get the most from the program. It also has been pointed out that the video shows a bias for iPhone users as all the audio cues are prom the iPhone.
Interested? Registration is open to American Express cardholders and merchants today and if you get picked, they’ll throw $100 your way to get started.
Through the eyes of a four year old child who grew up in the on-demand entertainment world of Netflix, traditional “appointment television” is a foreign concept. The interruption of commercials jarring and confusing. The following is from Patrick Rhone who is writing about his daughter and her utter disbelief in how things used to be when you turned on the television.
“I didn’t turn it off, honey. This is just a commercial. I was turning the volume down because it was so loud. Shrek will come back on in a few minutes” I say.
“Did it break?”, she asks. It does sometimes happen at home that Flash or Silverlight implode, interrupt her show, and I have to fix it.
“No. It’s just a commercial.”
“What’s a commercial?”, she asks.
”It is like little shows where they tell you about other shows and toys and snacks.”, I explain.
“Why?”
The movie comes back on for poor, confused Beatrice. She doesn’t understand why someone would program interruptions into the middle of a movie. Just as she gets back into enjoying the movie again, another commercial break descends.
“Why did they stop the movie again?” Beatrix, asks. Thus leading to essentially the same conversation as before. She just does not understand why one would want to watch anything this way. It’s boring and frustrating. She makes it through the end of the movie but has little interest in watching more. She’d rather play. The television is never turned on again during our stay.
And so it goes, the future is already here. If you don’t let them enjoy media without distraction, they’ll make their own.
I was asked the other day to name my favorite advertisement. In terms of effective engagement, I think branded apps are the best combination of free-to-the-consumer utility and on-going engagement for the brand. I recently downloaded an app to help me find the closest Chevron gas station because my dealer said that their special gasoline is best for my car. It’s a single purpose app (shows you the nearest Chevron based on your phone’s location) but Chevron took to the time to add information about the gasoline and also insert a feed of online coupons that can be redeemed at their gas station.
While I was a Yahoo, I kept a running feed of links pointing to clever advertising campaigns and used those as case studies when speaking with advertisers and agencies that were always coming to Yahoo for advice and collaboration. Today I ran across this clever idea using your mobile phone to control a giant game of Pong! on a billboard in Sweden. What is unique is that it uses your phone’s web browser to find your physical location and as long as it determined that you were in the proximity of the billboard, it would let you enter a code to on the web browser to control the game.
No app. No downloads.
Engagement is measured by those that click through to the coupon screen where they get a free drink or snack at the local McDonalds. It’s not clear from the video if this coupon was just on your browser’s screen or if it get’s sent to you via SMS or email. If it’s the latter, then not only are they able to measure conversions, they are also capturing phone or email addresses for future campaigns.
Oh, if you want to browse the archive of other clever advertising campaigns of note, I have a list on my Pinboard link feed.
OK, so word is out that Solid State Drives (SSD) are not as reliable as they were once thought to be. Essentially, we projected the decades of expertise that have gone into making hard disks reliable onto these new drives and expected more or less the same level of reliability. Of course, as people started to buy these drives in mass and own them over time, we realize that we were not comparing apples to apples.
In other words, past performance is not a reliable indicator of future performance if you change the fundamental technology underneath.
Still, folks like Jeff Atwood are willing to give up the occasional, “catastrophic, oh-my-God-what-just-happened-to-all-my-data instant gigafail” because their seek times are so good. Jeff tells the tale of someone who bought eight drives over two years only to have them all fail. Some within 15 days! As long as you plan for failure as a known, then you can enjoy mass storage performance that even your RAM will have a hard time keeping up with.
To put it in his words, “SSDs are so scorching hot that I’m willing to put up with their craziness.”
With that behind us, which of the following videos do you think does a better job selling you on the speed and reliability of an SSD?
This one?
or this one?
One video had 673 views, another had over 3.7 million.
Part of the joys of packing (I’m due to move back to California from Helsinki at the end of May) is you go through stuff and figure out what you can pitch. Last night I ran across a trove of old clippings that I never got around to scanning in and adding to my old Big Sell Out site. Big Sell Out was one of the first web sites built when I was living in Tokyo. It was a collection of scans of mostly American actors and sports celebrities advertising (usually awkwardly) for Japanese products.
The whole experience of American movie stars earning some extra cash from a Japanese sponsor was famously portrayed by Bill Murry in the movie, Lost in Translation.
Anyway, a few months back I ran across an old digital backup of the images and put them up again. Last night, I spend a couple of hours scanning these new images in and have added them to the Celebrity Endorsement archive for you, dear reader.
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