Ok, most advertising campaigns today are brutally short sighted and missing the big opportunity that technology is enabling. And those that are taking advantage of the tech, are probably not maximizing, or anywhere nearing the potential they can realize…

So what are the approaches that should be used if the spot ad is dead? Here is a list to start with:

Interaction, interdependence, grass roots initiatives, multi-channel interactive media, conversation catalysts, customer driven feedback cycles empowering iterative product development, automated tracking and recursive real-time changes and so on.

Ok, so what does all that stuff mean?

Interaction is the key to engaging customers. It was difficult to do 10 years ago, but we now have the technological capability, via Internet and wireless (and other), to automate interaction with our customers. Better still, it allows us to build a relationship not just between an advertiser and the target audience, but, and this is the most important step – between the target audience members themselves.

Look at the success of MySpace. Its success rocketed when it became a venue for like-minded music lovers to find each other and support their favourite indie bands. You had overnight indie band sensations. There are countless stories of 4 guys in a rock band that had been doing evening and weekend gigs while choking down 40 hour a week day jobs for the last 5 years. They had fans, but they were scattered. 20 fans here, 50 there, another few over that other town. Through MySpace they were able to consolidate their fan base, associate themselves with a genre, and the fans spread the word about their music. A month later, all the day jobs were quit and instead of selling 3000 albums a year, they were selling 20,000 self pressed. All of a sudden they could make a decent living off their own music – live their passion.

So what does music bands and MySpace have in common with big brand advertisers?

It is a simple lesson in consolidating your passionate fans in a given market segment and empowering them to tell your story FOR YOU.

This is the TRUE interaction – it’s not about brand-X shoving another message down customer-Y’s throat, it’s about encouraging customer-Y to meet other customer-Y’s so they group together, and in numbers they have a voice, and that voice can be empowered to expand the brand. The collective voice of the brand loyalists turns them into activists – and they voices should be listened to closely.

ASIDE — I love how big brands spend so much money on market research. Wrigley’s did it recently trying to figure out what kids want in a pack of gum. The outcome? That kids tie their identity with the things they have in their pockets, the clothes they wear, the music they listen to, and the activities they engage in. Conclusion – let’s make a cool package for the gum so it looks good when you pull it out of your pocket and put it down next to your cell phone and iPod. Wow, staggering! They should have bought me a cup of coffee and I would have imparted the same wisdom while proving my point with a hundred case studies of other companies that did exactly what they did, but for shoes, shorts, shirts and so on. I’ll be using Wrigly as a case study for my clients when they ask me what kids want. Save them a cool mil or two. Anyway…

Ok, so what does that have to do with the original topic? Well market research is skewed. You’re picking a random assortment of your target audience to get a sense of what your brand should do, say, be. Honestly, how do you get anything but average results from the approach? I can prove it to you statistically if you want. It’s a simple relationships between the larger your human sample size the further your return will approach an average value. What do I mean by average value? I mean you’re going to design a product that is average and entirely forgettable.

Instead look to the LOYALISTS! They are your fan base, your market, they are the early adopters and those who will vocally judge your product. They are the people who others seek advice from when looking at buying your product, cause they know the category so well. They are the ones who will trumpet your cause for you. They will do an infinitely better job at selling it than you can ever do. You just can’t have the same relationship with their peers as they do (friends & family!).

INTERACTION people. It’s not just about you and your audience, but creating a circle of loyalty around your brand, and have them trumpet your greatness!

Next post – a bit more on interdependence…

Problem: Attended the Web 2.0 Expo (April-2007) in San Francisco; a lot of great insight, but not very many speakers brought it down to the concrete and practical – how can SMB and enterprise use this stuff?

Let’s start with defining some basic fundamentals of Web 2.0:

Q. What is it?

A. Web 2.0 is about harnessing user (user = visitor to your website) generated content to add value to the experience of future users. So basically, if I interact with your site, it makes the next person’s experience richer, and so on.

examples: I write a review, rank an item, share a link, contribute knowledge, vote on a process, edit information (fact check), and so on.

Web 2.0 is about the power of the masses, building community, and self-expression.

Power of the Masses:
This theory is fairly straight forward – the more people you have who perform an action, the greater the ability to determine its true nature.

example: if 1 person rates a movie, you have no idea if it is good or bad, but if 10,000 people do, then you have a large enough data set that you can get a good indication if the movie will suck or not.

Building Community:
Now here is where it gets interesting. Web 2.0 allows for global congregation around any common interest.

example: So 10,000 people rating a movie should give a clear indication if its good or not – but that depends on who those 10,000 people are. Now if the movie is a cheesy horror flick, and the site rating it is dedicated to cheesy horror flicks, and most of the users are fans, then the 10,000 reviews now have much greater context – because the ratings are contributed from like minded individuals.

Self-Expression:
The final piece of the Web 2.0 experience is the capability of anyone, with no technical skill requirement, to publish anything they want at any time. Web 2.0 has put the power of the media into the hands of the masses.

example: so I, you, or anyone with an Internet connection, can, for little or no cost, publish or views, perspectives, or information on any topic we want. These are blogs.

Ok, so how do these all tie together?

First, anyone can be a publisher of words, images, audio and video.

The barrier of entry has been collapsed to zero. Off-the-shelf hardware and software can be purchased or used for low or no cost to create a message in any medium and launch it on the Internet. Where “mass media” had the only access to ubiqitous reach, now everyone does.

Second, mass media curated content only from a select few people, but now everyone with an interest (expert or amateur) and a passion to share that expertise can do so.

This gives greater perspective to the individual knowledge seeker – as there are many more sources to learn from.

Third, in a technically driven world where human interaction seems to suffer with automated services (Web 1.0), now uses technology to create natural communication and conversations – between individuals, groups, and of course entities (governments, businesses, non-profits, etc).

Next post:

The Tools of Web 2.0 – how to use Blogs, Wikis, Reviews, Ratings, Community Building, RSS, and other items. I will define what these items are and how to use them effectively.

Just got back from the Web 2.0 Expo in San Francisco put on my CMP and O’Reilly Media. Great event, I learned a lot, provoked many more thoughts – in general I highly recommend it.

I do have one major gripe…

Very few presenters really brought their talks back to business fundamentals.

Mr Speaker: How do I use what you just talked about
to further my business goals (make money!)?

Nothing summarized this better then on the last day while attending a talk about how Web 2.0 ideas such as blogging, video and pod casting, user generated content, and other such attributes can be used in the SMB market. How do you, as a small business owner, actually USE this stuff yourself?

About half way through someone finally asked that “So, how do I use this for my business!?”

The loudest applause I had heard yet… FOR THE QUESTION!

And to my great and utter disappointment, it was not answered. Don’t get me wrong, the guys on the panel new their stuff, they were passionate, they GOT IT. But they couldn’t make it concrete. They couldn’t bring it back from esoteric philosophy to physical representation that a business owner could understand, and more importantly, APPLY.

To some extent this was true for almost all the talks.

So now that I’m done bitching, I’m going to do something about it. My next few posts are going to be best-of summaries of the ideas I learned and how to apply them for SMBs and the enterprise.

Stay tuned.

Anthropology is cool…

Interesting definition of web 2.0.