Week of 8.04.08 / Top 5

August 4th, 2008 by Joe Mele

DesignThinking/GenY/NewMedia/TextRules/OnlineInstore

P&G Changes Its Game

“Reframing is the key” – this article explores how design thinking reframes problems in a light that allows for innovation.

Picture: schneiderism.com

Gen Y Is Setting the Tech Agenda

Digital natives just think in digital.

Picture: blog.sitemost.com.au

Some execs believe social space is the real new media

Is banner advertising old media? Is user generated content the real future?


PIcture: peswiki.com

Text Messages Rule Mobile Ads

When will mobile marketing become the next big thing?

Picture: dialaphone.co.uk

One Big Store

Until retailers learn this lesson, they will never be truly successful in the multichannel world: “customers increasingly shop the retailers they like online and off and expect each retailer to recognize them across channels.”


Picture: lodicashregister.com




Other good articles this past week / 8.4.08

August 4th, 2008 by Joe Mele

Issues of Interest

Retail Shoppers Hit the Web First
emarketer.com

Web Content Producers Turn Focus to Dramatic Fare
mediaweek.com

Sports Video on the Web
emarketer.com

Streamed TV Shows Attracting Their Own Audience
http://adage.com

Are Short Videos Best for the Web?
emarketer.com

Digital Marketing News

Behavioral Targeting and Privacy
emarketer.com

Study shows few leading e-retailers with a presence on Facebook
internetretailer.com

Digital Commerce News

Report: E-Commerce Investments Increasing
multichannelmerchant.com

Digital News and Trends

Former Employees of Google Prepare Rival Search Engine
nytimes.com

The US Hispanic Online Populations
emarketer.com

Mobile map use outstrips online
bizreport.com

Teen Social Network myYearbook Raises $13 Million Round
paidcontent.org

Forrester Research acquires JupiterResearch for $23M
dmnews.com

Retail and Products

Wal-Mart Preps Next Phase of In-Store TV

adage.com

Target Offers Next-Day Installation For Web Site Consumers
online.wsj.com

Amazon: The Avis of digital music
money.cnn.com

Yahoo To Reimburse Customers Of DRM-Protected Music
informationweek.com




P&G Changes Its Game

August 4th, 2008 by Joe Mele

“Reframing is the key” – this article explores how design thinking reframes problems in a light that allows for innovation.

schneiderism.com

Article excerpt: How Procter & Gamble is using design thinking to crack difficult business problems . “Design thinking” may seem like just another new buzzword in the lexicon of innovation, but Procter & Gamble (PG) is using the approach to change its culture. Leadership is listening, learning, and deploying; cross-functional teams are cracking vexing problems across its business landscape; and visualization, prototyping, and iteration are facilitating communication internally and with customers like never before. Here’s a look inside one of the most intriguing change management efforts going on in Corporate America today. “It has been transformative for our leadership teams,” says Cindy Tripp, marketing director at P&G Global Design, as she describes her work rolling out the company’s Design Thinking Initiative. With a cadre of 100 internal facilitators, more than 40 design thinking workshops have been held in P&G business units across the globe during the past year. The design thinking facilitation team comes from every function at P&G (such as marketing, research and development, info tech, and product supply as well as design). Perhaps most important, half of the workshops focused on something other than new product initiatives to include other types of pressing business issues such as strategy, retail relationship building, and matters of operational excellence. “We want people to use these techniques daily in their work—using broad insights; learning faster; failing faster. Design thinking can be applied everywhere, every day,” says Tripp. This attitude signifies an extreme shift for the $81.5 billion global consumer-product giant, whose long-tenured design managers describe P&G’s former attitude about design as “the last decoration station on the way to market.” Reframing Is the Key
“Once business leaders see they can use design thinking to reframe problems, they are transformed,” says Tripp. “The analytical process we typically use to do our work—understand the problem and alternatives; develop several ideas; and do a final external check with the customer—gets flipped. Instead, design thinking methods instruct: There’s an opportunity somewhere in this neighborhood; use a broader consumer context to inform the opportunity; brainstorm a large quantity of fresh ideas; and co-create and iterate using low-resolution prototypes with that consumer.”

The rest: businessweek.com

Musing: The concept that P&G is using is absolutely in line with the way that we think business problems should be addressed. Rather than focusing on the deductive processes, design thinking forces you to think of the end state, the needs of customers, the desired behaviors, and the experience that needs to be created rather than on breaking down the problem into its parts and solving the parts. To truly differentiate, you have to understand what consumers need and determine how you can uniquely solve the problem – but do this in a collaborative and creative way. The only way to do that is to create experiences and have people react to them. We can sit and think about solutions all day long, but the key is in getting those solutions out and having people react to them. Approaches like the one P&G is taking have the real capability to transform organizations.




Gen Y Is Setting the Tech Agenda

August 4th, 2008 by Joe Mele

Digital natives just think in digital.

Picture: blog.sitemost.com.au

Article excerpt:   With tech “embedded into everything Gen Yers do,” the twenty-somethings are leading the way. But companies are having a hard time keeping up . Companies are having trouble keeping up with Generation Y consumers who are now setting the technology agenda.  Generation Y consists of 18- to 28-year-olds who are leading the way in technology adoption with nine out of 10 owning a PC and 82 per cent a mobile phone.  Generation Y is also the most internet-savvy group, spending more time online than they do watching television, with 42 per cent watching online video at least once per month.  Meanwhile 72 per cent of Generation Y mobile phone users send or receive SMS messages.  Charles Golvin, principal analyst at Forrester Research said Generation Y is the audience companies are most struggling to understand—a key issue due to their importance for future revenue growth.  The older Generation X (aged 29 to 42) also use technology extensively but more when it “intersects with a personal need or fulfils a desire”.  Golvin said the key distinction between Generation X and Y is that Generation X uses technology when it supports a “lifestyle need” whereas tech is “embedded into everything Gen Yers do” making them the first “native online population”.  During the past three months, 69 per cent of Generation Xers have shopped online and 65 per cent used online banking—more than any other group.
The rest: businessweek.com

Musing:  The biggest insight about Gen Y consumers is that they simply expect technology and connectivity to be a part of their life and their experiences.  My colleague Jeremy Lockhorn uses the term “the invisible web” and I think this is a good description for the difference between Gen Y and my generation Gen X.  The invisible web simply means that the web is everywhere, and is assumed or rather taken for granted.  When you are someplace and you don’t have access or connectivity, or if your technology breaks down, you have a sense for what this means even more.  Older generations still look at technology as fulfilling a specific need, while younger generations just assume its existence.  This has huge implications for how we market to the younger generations, and what kinds of products and services we create.




Some execs believe social space is the real new media

August 4th, 2008 by Joe Mele

Is banner advertising old media?  Is user generated content the real future?

Picture: peswiki.com

Article excerpt:   Google, Microsoft and other Web players may be wasting precious time and resources trying to dominate the display ad segment of the Web when the real ad potential may be in the user-generated, social media sphere, according to this article. “Advertising ought to be designed to support the social-media program, because the tip of the marketing spear ought to be the consumer-generated-media piece,” said Mark Haas, CEO of Publicis Groupe’s Manning Selvage & Lee.
The rest: adage.com

Musing:  I have lots and lots of problems with this article, and my first reaction is that it was written by a media traditionalist who knows little about digital.  But, I am wrong.  Abbey Klaassen is Advertising Age’s digital editor, and she seems to know a thing or two about digital (despite the fact that one of her lines in the article is “For all its glory, the internet still has not proven itself capable of being a primary branding medium. Most ads online are response-based and work best for brand marketers when they complement a branding campaign in other media.” – pure drivel).  Upon reflection, I think my real issue with the article is that it just misses the point completely.  What online advertising is not missing is better targeting (it offers actual user targeting rather than estimates) or better metrics (it offers actual data rather than estimates), but more creative thinking when it comes to how to produce good advertising.  Banner ads are part of the mix, but they are not innovative per se.  Neither are TV commercials.  What digital advertising needs can be found in the P&G article above – how do brands create engaging experiences with consumers?  Those can be banner ads, websites, widgets, search terms, or print ads.  More money will come to digital when brands and ad agencies figure out how to leverage the medium, not make it more like traditional.




Text Messages Rule Mobile Ads

August 4th, 2008 by Joe Mele

When will mobile marketing become the next big thing?


Picture: dialaphone.co.uk

Article excerpt:  Simple ad formats reaching the widest audience. Mobile advertising has been the next big thing for a while now. But although text messaging is popular among young adults, the 160-character format has yet to become a mass influencer.  Still, consumers who respond to mobile ads are most likely to engage with text messages, according to a survey of mobile users ages 15 and older in the US by the Direct Marketing Association (DMA). Seven out of 10 respondents to the DMA’s “Mobile Marketing: Consumer Perspectives” study who had acted on mobile ads said that text messages for a product or service had prompted their actions.  That was more than three times as many as responded to a mobile Web offer or coupon.  But even text messaging is not about to replace other marketing mainstays such as e-mail or direct mail. In fact, only 1% of US Internet users surveyed in February 2008 by ExactTarget picked text messaging as their channel of choice for opt-in communications. Instead, the medium is better-suited for targeting specific audiences, and as part of multichannel campaigns.
The rest: emarketer.com

Musing:   Bad data creates bad conclusions.  Text messages rule mobile because they are the most far reaching in the mobile space, not because they are superior.  But the solution that we should be running toward is not that text ads are the best way to market in the mobile space.  I will concede that I think they have the potential to be powerful, but texts are like email – and how does email marketing compare to search and display ads?  Effective, yes.  But different.  When phones get better, and data plans get better, and mobile browsers get better, the mobile phone will act a lot like a computer.  What’s a little different about the phone is that small applications or widgets (think iPhone apps) have the potential to be HUGE on mobile devices.  I think that marketers should be focusing there.




One Big Store

August 4th, 2008 by Joe Mele

Until retailers learn this lesson, they will never be truly successful in the multichannel world: “customers increasingly shop the retailers they like online and off and expect each retailer to recognize them across channels.”

Picture: lodicashregister.com

Article excerpt: The payoff in web-enabled point-of-sale: Better service for valuable customers. Many cross-channel initiatives have added features to retailers’ web sites, such as ordering online for in-store pickup or visibility into a store’s inventory. But some retailers are starting from the other end—the store—and adding Internet connectivity to their point-of-sale systems, giving employees access to the retailer’s own web site and other web-based data. Whether the retailer is a national chain like J.C. Penney Co. Inc., which has web-enabled all 35,000 of its POS terminals in nearly 1,100 stores, or a single-store merchant like Loser Kids Inc. outside of San Diego, the goal is the same: make the retailer appear to the customer as one big store, even if it sells via the web and catalogs as well as through bricks-and-mortar stores.
The rest: internetretailer.com

Musing: I love this idea that retailers are starting to train store employees on the web and give them access to their web sites and systems in the stores. Customers simply have the expectation that stores operate seamlessly online and offline – even though most really don’t. And the sad reality is that retailers don’t necessarily want to be that way, they just are because of antiquated technology and systems. What is also interesting about JCP is that they are using internet connected technologies in the store not as a substitute for customer interaction (like self-service kiosks) but as a way to enhance interactions. This is a tremendous idea, and really creates a new way of thinking about in-store technology.




Week of 7.28.08 / Top 5

July 29th, 2008 by Joe Mele

OlderSurfers/OlderGamers/GasDrivingOnline/FacebookRedesign/Twitter

Older Americans’ web use is starting to mirror that of younger consumers

We should be less and less surprised by these headlines now that many online consumers have been online for some time now.


Picture: threeminds.organic.com

Changing Video Gamer Demographics

They ain’t playing Resident Evil 4, but the picture you have of a gamer in your head may not reflect reality.

Picture: newsimg.bbc.co.uk

To Save Gas, Shoppers Stay Home and Click

Last week, I was bragging that I found gas for under $4.20 a gallon. Who EVER thought that gas over $4.00 would be considered a bargain?

Picture: chuckthomas.com

Facebook redesign to give users more control

Smart move by Facebook . BACN will be the social network killer if they are not careful.

Picture: cybernetnews.com

Twitter took off from simple to ‘tweet’ success

Yes, I love to talk about Twitter. Yes, I wrote about it my last post. Yes, you still don’t get it. But you should- you really should!

Picture: smh.com.au




Other Articles of Interest / Week of 7.28.08

July 29th, 2008 by Melissa Bird-Vogel

Issues of Interest

U.S. back-to-college spending to fall this year-survey
Reuters.com

Enter the gaming grandmothers
BizReport.com

Social media and the tribalization of business
BizReport.com

Dressing Rooms Of The Future
Forbes.com

Home Servers May Render CD Racks Obsolete
NYTimes.com

Digital revolution could be Olympics’ salvation
Washingtonpost.com

Digital Marketing News

New Generation of Phones Is Game-Changer for Radio
AdAge.com

Can Local Web Ads Save Newspapers?
eMarketer.com

Does search marketing increase brand awareness?
BizReport.com

Report: Mall Shoppers Watch Those Video Ad Signs
BizReport.com

How will Flash alter the SEO landscape?
iMediaConnection.com

Digital Commerce News

African-Americans, Online and Shopping
eMarketer.com

Digital News and Trends

YouTube Up, Fox Down in Video Streams in June
TVWeek.com

Retail and Products

Mobile Music Searches for Hit Formula
eMarketer.com

Analyst: RadioShack may test concept similar to Apple stores
DallasNews.com

Blockbuster names Warner Bros. veteran to head up digital content
InternetRetailer.com

TiVo and Amazon Team Up
NYTimes.com

Electronics retailers find service sells
USAToday.com

Study: Offline Retailers Should Be ‘Net Strategists
MarketingVox.com




Older Americans’ web use is starting to mirror that of younger consumers

July 29th, 2008 by Joe Mele

We should be less and less surprised by these headlines now that many online consumers have been online for some time now.

Picture: threeminds.organic.com

Article excerpt:  The online behavior of Americans 50 years and older increasingly is mirroring the online behavior of younger Americans, including similar online shopping habits, according to a study from The Center for the Digital Future in conjunction with AARP, an organization for those 50 and over.  The study found that 68% of users 50 years and older sometimes or often browse in retail stores and then buy online, compared to 72% of users under 50. 76% of older Americans said the Internet is an important or very important source of information, compared with 85% of users under the age of 20. The percentage of those over 50 who see the Internet as an important source of information increased 51% between 2002 and 2007.
The rest: internetretailer.com

Musing:  Now that I am getting older, I guess I don’t see 50 as all THAT old, but regardless, it seems to me less about the fact that older users are changing than it is that users who have been using the web for a while now are just getting older.  Some interesting stats in the article regarding usage – that older users are highly committed to their networks and social activities.  What is also interesting is that older users tend not to use applications like IM.  This, too, seems to mirror the fact that most older users likely a) started with email and it is still the killer app for them and b) they probably use the web a lot for business transactions.  Regardless, the bottom line is that we have stop thinking about the web as the media for the “young folk.”  It’s gone far beyond that.