Crystal Balls?

Welcome to the future – but is it all the marketing gurus said it would be?…

Silver suits. Jet packs. Holidays on the moon. In the 1950s, ’60s and ’70s, the future was looking good. Sadly, it’s not quite worked out to be the Buck Rogers utopia we were promised. OK, the internet and mobile phones might have wowed my grandparents if they’d lived to see them. But it’s just as likely they would have just have been utterly confused by the information overload.

Books reviewed:

Beyond 2000: the future of Direct Marketing. Ed. Jerry Reitman 1994

The One-to-One Future. Don Peppers and Martha Rogers 1994

The Advertising Book. Hugh Oram 1986

Saints & Spinners. Ed David McWilliams 2005

For some reason, the marketing sector has always been awash with gurus ready to predict (for a fee) what the world of tomorrow will look like.

For any marketer looking to make a name for themselves, it’s an easy bet: lay out a vision of the future with conviction, preferably in a book. Give it a title that echoes the daddy of them all, Alvin Toffler’s Future Shock. Then wait for the lucrative invitations to conferences and consultancy sessions to roll in.

That’s all well and good. But what happens when the years pass and some smartarse decides to see if the gurus really knew something the rest of us didn’t? Well, I’m that smartarse – and here’s what I found…

Recently I picked my way through a number of books, published between 1986 and 1995, to see what their authors thought lay ahead.

One whose title reeked of conviction was 1993’s ‘The One-to-One Future’ by Don Peppers and Martha Rogers. A key theme centred on the word ‘discontinuity’ which Peppers and Rogers used to describe a leap from one way of doing things to a completely different approach. Technology, they argued, would change things completely and we could say goodbye to ‘mass production, mass media and mass marketing.’

Their future was dominated by tailored individualised messaging delivered – and this is the crucial angle – by cutting edge technologies such as ‘Video Plus’ (which could record an infomercial broadcast on a cheap obscure TV channel at 3.45am) and software that would allow computers to read faxes. In fact, fifteen pages of book are spent exploring the potential of the fax machine and ‘fax-based dialog programs’.

Seventeen years later, this reads like a recommendation to use Morse Code as marketing medium. Sure, the principles that Peppers and Rogers promoted – innovation and tailoring a message to its most receptive audience – have stood the test of time. But if you had sunk your money into the types of technology they recommended, you’d probably now be blowing your harmonica under a bridge somewhere these days.

Let’s turn our attention to another confidently-titled tome, ‘Beyond 2000 – the future of Direct Marketing’ edited by Jerry Reitman published in 1995. To me, 1995 seems like last Wednesday. Surely then, Jerry and his co-contributors to this books had a fair inkling of what lay ahead?

To be fair, there is a sense that technology was opening up an exciting new future for marketers. But this wasn’t a future we would fully recognise today. Contributor Donald R. Libey* described ‘Virtual Reality Marketing’ as ‘…perhaps the most significant marketing advance ever.’ Libey conjured up a future where house purchasers wearing a fetching helmet-and-glove combination could wander through virtual versions of houses for sale, looking left and right, up and down, interacting with an environment without actually being there.

Of course, we know that this has happened, albeit in a far simpler form. Every estate agent showcases their properties online on property websites – but without the predicted whizz-bang 3D helmets.

The future has turned out to be just as technologically complex as was predicted – but not in the way predicted. Mobile phones, the devices now central to everyone’s life simply did not figure in cutting-edge marketing thinking of the early ’90s. Some pundits got close; but most missed the real pot of gold that mobile communications created.

Another contributor – James R. Rosenfield – got tantalisingly close to describing what smartphones have achieved:

‘Financial services firms should closely monitor the new interactive media, where computers, telephones and video will ultimately converge into a single household unit (the fiber-optic based “information superhighway”).’ Note the word ‘household’. Despite mobile phones already being in widespread use, there was absolutely no sense of their power and potential.

*In the same chapter, Donald Libey went on to pen one of the most spectacular pieces of marketing prose I’ve ever come across:

“Turning from the near-certain choice of a techno-narcissism by society for the transient fantasy pleasures of virtual reality, are there potentially revolutionary marketing outcomes associated with the ultimate cyber-pseudoreality?”

Explanations on a 3D virtual postcard please.

But perhaps the biggest shock lies in the indexes of the books reviewed. Amazingly, words like ‘internet’, ‘digital’, ‘online’, ‘website’ or ‘mobile phone’ don’t receive a single mention even as late as the mid ’90s.

So the tools that actually became the essential links between consumers and corporations of every size were completely ignored.

So what can we learn from smugly looking back?

For me, the key lesson is that hype around today’s funky technology should always be taken with a pinch of salt. At the same time, we should be very cautious about dismissing what seems unpromising at first sight.

When digital cameras and mobile phones first appeared, they were more expensive and utterly inferior to standard cameras and landlines. But they didn’t stay that way. Conversely, Virtual Reality was seen as the way of the future; before long however, it was rotting on the gizmo scrapheap alongside Citizens Band radio and 8-track tape recorders.

Interestingly, while VR and CB didn’t make it to the promised land, they did drop significant hints at what lay ahead: for example, the world’s appetite for individual broadcasting (hello Twitter and blogging) plus on-the-move communication with friends and strangers alike (take a bow mobile phones and social networking).

So while specific technologies can fall short, general instincts can be right. The pattern seems to be this: a radically new technology appears and pushes the world in a direction that couldn’t have been predicted; conventional thinking initially dismisses it as just a novelty for kids (texting, online gaming and Facebook all spring to mind) before finally waking up to the possibilities.

Before beating ourselves up too badly for marketers’ inability to predict the shape of things to come with 100% accuracy, take a look at this article from 1968 outlining what the world of 2008 would be like.

Alternatively, marketers desperately try to keep ahead of the curve and bet the farm on a dead-end technology like WAP.

Ultimately the real future is impossible to know and luck is as important as insight. Maybe the best bet is simply to hedge one’s bets as Hugh Oram did in 1986’s The Advertising Book, when he said: ‘Will the written word be banished in less than a century….Or will the present vehicles for the printed word be transmuted into new variations not as yet invented?’

250mph cars and undersea holidays anyone?…

Back to the future?

The world doesn’t go backwards. After steam, we never went back to wind and horses. Calculators killed off abacuses.

So one well-known Dublin marketing professional* may have been a little off the mark in 2005 when he stated (in print): ‘I do believe that SMS and Internet will become boring to young people in the not too distant future. In ten years’ time I think people will probably go back to writing handwritten letters.’

There’s still five years to go before the deadline for this prediction. Perhaps Facebook’s 500,000,000 users will actually change their status radically in that time.

But I doubt it – and with that, I put down my quill…

*Get in touch and we might name names…

Des Columb, Creative Director, Dialogue


Deny Everything

Brands, look at my viral. Now at my product placement. Now back at my viral. See how whacky it is. Now back at my product. Now back to my viral. Sadly, while brands like Old Spice really get the impact of virals and have 20 million people voluntarily watching them, some put them out there, then deny they had anything to do with them at all. In the age of the faux viral, most brands are taking the stance of plausible deniability, but who’s lying and who’s telling the truth?

Take the case of the Guinness ‘bottle’ viral which featured a woman’s back being used as a table in a three – or possibly four – way. Diageo responded at the time by saying they were in no way associated and made YouTube remove it. Proper order; Diageo is a client and we know that they are stringent in adhering strictly to drinking laws. We also know they are 100% committed to encouraging people to drink responsibly.

So it’s no surprise that Smirnoff, another Diageo brand, is currently denying involvement with the virals lauding a drinking game known as ‘icing’, which has become “the first viral drinking game of the modern era”, according to the New York Times.

What did come as a surprise, however, was a top Swedish digital agency at an advertising conference I attended recently, saying it was their opinion that Diageo was certainly behind the “Icing” viral campaign.

This brought to mind the Guinness “gay couple” viral. It was written and shot as an official ad, but when tabloids started causing uproar before it before it even aired, Guinness dropped it like it was hot and denied all involvement. So sometimes, it seems not everything is black and white.

When Ford Ka’s ‘Cat’ viral, with its cat decapitation, caused outrage, both client and agency claimed that: yes, they had made it but no, they had never approved its release!

Similarly, Nokia’s viral which featured a cat caught on a rotating ceiling fan blamed their agency for going ahead with a concept they hadn’t approved.

Volkswagen went one further and even threatened to sue the creators of the now infamous ‘suicide bomber’ viral. Protesting too much?

When Nintendo’s ‘Why every guy should buy their girlfriend a Wii Fit’, was posted on Youtube, the gaming giants denied involvement: “absolutely, 100% nothing to do with Nintendo”. But the clip was posted by the director of interactive media at a US ad agency and featured his girlfriend – who also worked at the agency. Just a coincidence?

Indeed, are all these virals just coincidences? A case of scheming viral hoaxers victimising poor global brands? It’s plausible. After all, the sheer quality of user generated content is astounding. It’s an interesting conspiracy theory. But where is the smoking gun?
And with agencies in the US now springing up claiming to specialise in ‘Hoax Virals’, it makes you think about the nature of a typical denial. It usually goes like this:

  1. Viral goes where brand doesn’t dare to go – but has gratuitous product placement.
  2. It creates a furore.
  3. When the furore dies down, the company in question comes out and claims to have no connection to the spot whatsoever. The policy: deny everything.

But no matter how plausible the denial, can we believe it?

Earlier this year, a viral did the rounds showing a group of athletes doing the impossible and running on water. It seemed to be a genuine affair – except for product placement of Hi Tec trainers that was a tad suspicious. Despite 4 million views and a positive reaction to the piece, Hi Tec denied involvement.

“We had zero to do with that,” said their U.S. PR manager Dayna Panales at the time, “nothing”. Panales even denied that her denial was part of the campaign. “This is not a campaign on our part at all”, she added.

But in June, Hi Tec changed their tune and admitted they were indeed responsible. In a press release, they commented: “After the initial buzz, we thought it was finally time to come clean and unveil to the world that Hi-Tec were behind the viral. It was all a well intended hoax.”

Dialogue MD Michael Killeen commented: “People are less gullible and have become wise to the phenomena of hoax ads especially with sites such hoax-slayer.com. Brands must remember that trust is the most important asset they own. While traditional advertising is regulated to be truthful, using online marketing is a way of getting around this. I have huge respect for brands that become risky in the online space but these brands must maintain their honesty with these brave activities. I have always stood by the values that you shouldn’t commit the crime unless you’re willing to do the time. If you get caught then raise the hand, admit the prank, you will be respected. It will have the complete opposite effect if you don’t. Irish consumers respect honesty and will not tolerate people or brands who blatantly lie”.

The days of denial could soon be coming to an end however. In March next year, the Committee of Advertising Practice code will also deal with digital, the grey area that brands have enjoyed for so long. Allegedly.

Gerry Ryan, Dialogue


Ireland – To B2B or not to B2B?

Question: Who in Ireland delivers world class B2B marketing or offers a killer customer experience?

Answer: Errr…anyone?

Like finding suitable candidates for our next President, it’s an interesting question with unfortunately no obvious answers. So we asked some of Ireland’s top marketers over the last number of weeks. They all agreed it was a challenge to even think of one.

Most of those asked felt that Irish businesses are still wedded to a traditional communications model i.e. ATL advertising and everything after that is just bolted on. All agree that there are no high-profile examples of brilliant B2B in Ireland…

But why?

  • Size?
  • A sales VS marketing control issue?
  • Is it out there but we simply can’t see it because it’s so brilliantly targeted?

Size Matters…

In the UK there are over 4.7 million SME’s and 6,000 corporations. In Ireland we have approximately 150,000 SME’s and at best 400 corporations with 250+ employees.

Size restrictions impact on budgets which affects the quality of B2B work. It’s difficult to justify a corporate programme for 20-50 corporate clients. And in the SME sector, few businesses in Ireland can justify the significant investment required in sophisticated database tracking.

But it shouldn’t!

Personally, I believe Ireland’s Business Universe size is a key strength. On numerous occasions we produced world class B2B work where our international peers couldn’t. The Aer Lingus Gold Circle programme is a classic example. It had 250 ‘Elite’ members (as opposed to BA who had 15,000), meaning we were able to deliver customised, innovative experiences that our competitors could only dream of. For instance, front line staff could review their Elite customers’ photos before they came on board so they were surprisingly greeted by name. None of the other airlines could ever have hoped to be in a position to do this. The programme was consistently voted the best in the world – simply because of its manageable universe. Can’t this advantage be applied to more B2B efforts?

Sales VS marketing

Tom Trainor of the Marketing Institute suggested that B2B is dominated by a focus on the sales funnel and that’s not what it’s exclusively all about. The revenue generation task is largely driven by sales in the B2B scenario and maybe that’s why the brand building piece isn’t as strong as it should be. Where marketing is regarded as “lead generation” it’s really only ever going to be a sales support unit. But even where this is well established, it’s not generally well done.

Tom would like to see a focus on sales funnel metrics in general, and ratios in particular. “Only the very best sales people are comfortable with this, and there can be an unhealthy tension around who is managing who in this process. Strong leadership is the key, i.e. unified structure reporting to the same person, who has a thorough grasp of both marketing techniques and sales skills/processes.”

Other marketers suggested that we have scared off SME owners by using language that places them in a trance. When the SME owner gets confused s/he will revert back to tried and trusted marketing techniques. Taking on new initiatives takes time – something SME’s just don’t have.

B2B V B2C

B2B marketing is a significantly different operation to B2C marketing. Whereas brand, image and price are the key focus of B2C, with B2B it’s relationships. The consumer market is highly visible and aimed at everyone in the country. B2B, on the other hand, focuses on a relatively small customer size, is complex with high value products that are relationship driven rather than product focused.

An Post do a good job with their Mail Media Unit growth initiatives. But Utilities, Banks and Telco’s simply don’t. They position themselves as caring and solution focused without ever taking the time out to find out who their SME customers are and what they do.

Of course, perhaps B2B marketing in Ireland is so brilliantly customised that no one outside the circle sees the work? Frankly, I doubt it.

However, Elaine Knowles from O2 says that they recognise that business people are real people too. “In B2B, advertising the basics in a rational manner is a little insulting to business people. The general imagery that goes with this sort of work is ‘men in suits shaking hands at airports’ – there’s not much thought or inspiration there”.

“When O2 market to the business community, they work off insights. They find the insight, find the behaviour they want to change and address this with genuine products that will help – presenting SME’s in particular with relevant offers and technology that’s more suited to the size of their business. Once we get the basics right, we then focus on other things business customers might like such as free business advice from specialists on our blog to information on sports/music and also from other business people around the world”.

John O Connor from Deep-insight.com sticks his neck out by suggesting that the financial industry has got their act together. It’s an interesting and brave argument. “When one arrives in Dublin airport and gets through passport control”, he points out,” the first face you see is an AIB Corporate banker and his team of relationship managers in Ireland”.

“Banking is one of the few industries where the staff who manage the accounts are not called ‘Account Managers’ but ‘Relationship Managers'”, says John, who suggests that corporate banks do a pretty good job of trying to understand the customer and help them grow their business.

I believe most small business are crying out for advice and assistance from their bank and would be willing to share information with them in order to improve their business performance. What a great opportunity for them to build foundations today so that when the markets improve they are in a position to deliver relevant world class RM work. If it’s not being done, the opportunity is certainly there for someone to pick up the B2B baton and lead the way.

What do you think?

Are we missing the obvious? Is there anyone out there offering brilliant B2B customer experiences and producing the best B2B marketing in Ireland? Are you an Irish marketer doing killer unseen work? If so, please share it here. Inspire us with your unsung efforts. We’ll be delighted to share it with others and tip our hat to you.

Michael Killeen, Managing Director, Dialogue