Earlier this year I sat down with a videographer at the Bazaarvoice Summit in Austin. He asked me about the future of marketing, in particular as it related to data and consumer behavior. Given what I announced earlier this morning, I thought you might find this short video worth a view. Thanks to Ian Greenleigh for doing all the work!
Today on the Federated site, I’ve posted a preview of something we’re working on for a Fall release. I’m cross posting a portion of it here, as I know many of you are interested in media and data-driven marketing.
It’s no secret that Federated Media has deep roots in content marketing: We re-imagined CM for the modern web eight years ago, and since then have executed thousands of content-driven programs with hundreds of awesome publishers, services, and brands. “All Brands Are Publishers” has been one of our core mantras since our founding. And each year we run the CM Summit, where the topic of native, content, and conversation-driven marketing across all digital platforms is dissected.
Back when I was first studying the intersection of brand marketing and technology – about the same time as The Search and the founding of FM – I started talking and writing about “The Conversation Economy.” Its core theme is this: “In the future, all companies must learn how to have 1-1 conversations with their customers at scale, leveraging digital technologies.”
Back then, actually executing on such an idea seemed a pipe dream. Recall, this was before Twitter, before Facebook, and before the Lumascapes. But one reason I love this industry is that we can dream big, and a few short years later, those dreams can become reality.
With the proliferation of “native” platforms like Twitter, Google, Facebook, Tumblr, and blogs, the idea of “branded publishing” has truly caught on. Every major agency (and publisher) has a brand storytelling shop, some have gone so far as to declare publishing to be central to their future. This is a very good thing – the massive infrastructure of media and marketing is slowly reshaping itself to become more nimble and responsive to how the world actually communicates.
But storytelling alone isn’t enough to get the job done. As an industry we need a platform that allows us to distribute those stories to just the right people, at just the right time, in just the right context. Up until recently, the only platform that allowed that kind of precision was search – hardly a great story telling medium for marketers, and driven by direct response dollars, in the main.
In the past few years, programmatic adtech has erupted onto the scene, but again, this technology platform has been used primarily for direct response. Programmatic’s rise has in large part been driven by “retargeting” – the practice of identifying a customer who visits your site, then finding him or her across the web and serving ads related to what they saw during their visit. Retargeting is now a core conversion tool for sophisticated direct marketers. It’s why that pair of shoes you looked at on Zappos keeps following you around the web.
Two years ago, we developed a thesis at FM: Programmatic adtech was going to drive brand marketing, and the bridge between the two would be content marketing. That’s why we bought Lijit Networks, one of the largest independent adtech companies in the United States. We believed then, and even more so now, that programmatic + content marketing = brand building.
While direct response is important, building brand awareness, preference, and loyalty remains a fundamental need. Brands need a scaled way to tell their stories to the right people in the right context. In the past 18 months, “scaled walled gardens” like Facebook land Twitter began to offer native advertising suites that offered just that promise (Tumblr offers a similar promise, one Yahoo! believes it can deliver upon).
But what about the “rest of the Internet”? While it’s fun to try out new “native” sites like Buzzfeed, the web wants a scaled play in “content marketing” that also checks the boxes of efficiency and highly evolved targeting.
Well, we’d like to introduce you to FM’s newest product suite, which (for now) we’re calling “Content Reachtargeting.” Internally, we like to refer to this effort as the “Reese’s Peanut Butter Cup” of marketing – you have your chocolate of high-quality content mixed with the peanut butter of programmatic retargeting. A perfect combination.
(To read more about it, head over the FM site….)
One of the key themes in our upcoming book has to do with the interaction of information and the physical world – in particular, how all things physical become “liquid” when activated by just the right information. But when you’re writing (and thinking out loud) about this topic, it’s easy to fall into an academic cadence, because information theory is a thicket – just try reading “The Information” in one sitting, for example.
So I’ve found it’s best to just tell stories instead (and to be honest, I’d wager that nearly all information theory should be reduced to narrative, because narrative is how we as humans make sense of information, but I digress). Here’s a story that happened just this past weekend.
If you’ve been reading for more than a year, you know that I spend a good part of August working on an island off the coast of Massachusetts. It’s a special place where my great grandmother settled in the 19th century, the kind of place where you visit graveyards with your kids to remind them of their own history, then hit a carousel and ice cream shop in the afternoon.
Anyway, this year my time on the island is unfortunately brief, what with my coming back to FM and various other entanglements. So every day “on island” is a precious one. Last week my son and I went on an East Coast college tour, driving from Washington DC (Georgetown, American) through Pennsylvania (Bucknell, etc) to Boston (Northeastern, BU, etc). After touring MIT on Friday, we decided to come to the Island a day early, on Sat. That way we could open up the rental house, get the car, and prepare for the rest of our family – my wife and two daughters – who were flying in on Sunday.
On Sunday my son and I were settled into our rental, eagerly awaiting Mom and sisters’ arrival. They landed in Boston just fine, but hit a major hitch with their connection on a tiny airline called Cape Air. Now Cape Air’s largest plane seats about 8 people, as they specialize in one thing – hopping from Boston down to the Islands. Apparently some cross winds and rain fouled up the routes, and long story short, my family’s flight was delayed for two hours, then cancelled altogether (oh, and they lost my wife’s luggage too). By then, it was almost 9pm, and too late to drive the 80 miles down from Boston to the ferry in Falmouth, which is the only other way to get to the island. (The last ferry leaves at 9.45 pm).
We were all distraught – there they were, just 80 miles away, but with no way to get to us. We were going to lose one of our precious days on the island, and it just stunk.
Then a fellow stranded passenger mentioned a possible solution to my wife: There was a service in Falmouth that aggregated private commercial boats for use as water taxis. Maybe they’d be able to help?
My wife mentioned this to me, and sure enough, a quick Google search found them. At 8.30 pm I called the service and “Captain Jim” hooked me up with another lobster boat captain ready to take my family across the sound, even late at night. Awesome!
But we still needed to get the girls that 80 miles down to Falmouth, and it was past “business hours.” I’ve used a lot of car services in my business life, and I know that they are not exactly very flexible – you have to make a reservation well in advance, and they cost a lot of money for long drives. I wasn’t expecting much, but I started calling as many as I could find, asking if they had any cars near Boston’s Logan airport *right now*.
The car services I called acted exactly as one might expect. Two put me on interminable hold while the “checked to see if they had a car near the airport.” A third flat out refused to try. A fourth asked me to put the girls into a taxi and send them back into downtown Boston, where they might have a car. And so on.
That’s when I tweeted this out:
Hey @uber you need the ability for people to drop pins for their friends/family in other locations. I’d do that ALOT
— John Battelle (@johnbattelle) July 29, 2013
And this is when the story starts to get interesting, in terms of liquid, information-driven markets interacting with the physical world. It turns out, Uber *does* have the ability for someone to drop a pin remotely, I just didn’t know it – I didn’t have *the information* I needed. Twitter solved that in an instant, as one of my followers quickly clued me in about how to do it. In two minutes I was called by an Uber driver at the airport, who was ready to whisk my family down to the waiting lobster boat. An hour and a half later, I picked them up on a private dock near the house. What the private boat service and Uber did was take inactive, physical objects, in this case a Lincoln towncar and a fishing boat, and turn them into kinetic, liquid, real-time addressable assets. And the main reason this was possible? Information cycling through a digital foundation of cell phone towers, Google, and apps like Uber.
What’s even more interesting about this story are the economics: The cost to fly three people via Cape Air to the Island was nearly 25% *more* than taking Uber and the chartered water taxi. Add to this the fact that the Uber driver was far more friendly and eager to please than your typical car service guy, and the water taxi was both fun and nearly twice as fast as the ferry.
In short, having the a liquid, information-driven market of cars and boats created a cheaper, faster, and way more enjoyable experience for my family. That’s a great thing, to my mind, and it makes me optimistic about the coming liquid economy. But if I operated Cape Air or Carey Limousine, I’d be more than nervous right about now….
Yesterday I took my son to the MIT Media Lab, hallowed ground for me, as reading Stewart Brand’s 1988 “The Media Lab” propelled me toward helping to create Wired magazine, where I edited the founding Director of the Lab, Nicholas Negroponte, for five years (he wrote the back column of the magazine).
For this visit, I met up with David Kong, one of the lab’s alumni wizards, who took us on a whirlwind tour of the place (David’s work on microfluidics is, I believe, some of the most important stuff being done today, but more on that in another post). I spent a day there last summer with Director Joi Ito, and it’s amazing to see how much progress can be made in a year.
Instead of describing everything, I think I’ll let video do the work – one of the Lab’s core values is to always be demo’ing, and my son and I saw half a dozen incredible projects, all demo’d by the people who created them.
First up was the Opera of the Future group, which evolved out of the HyperInstruments lab. Akito Van Troyer gave us a tour of the components used in the recently staged “Death and the Powers” piece, which was a finalist for the Pulitzer in music. Here’s some video of that performance:
Akito also turned us onto a very cool beat machine he built as a side project, a hack based on actuators and tempo that turns anything into a percussion instrument. Here’s a video of that I found on YouTube:
After that we went to see Xiao Xiao, who works in the Lab’s Tangible Media group (this is the part of the Lab most directly connected to the themes of the upcoming book). She showed us the MirrorFugue, which is just amazing, in particular, to sit down at the keyboard as it’s playing. It’s magical, which is pretty much the goal of the entire Lab. Here’s a video of that:
You can probably sense a theme by now – all this work is about blurring the lines between physical and digital, atoms and bits. An extraordinary world is soon to be settled by pioneers in this space, and we’re all of us fascinated by it – it’s why we love the idea (if not necessarily the look) of Google Glass, or 3D printing (I met the co-founder of FormLabs while at the Lab), or cool gadgets like the NFC ring.
The Media Lab is a place where folks are actively creating the future. Over and over, I heard this refrain: “I took some off the shelf parts, hacked them together, and wrote some code.” Simple, right?
One example: Makey Makey, which went viral earlier this year with the “banana piano.” The idea is bigger than turning fruit into keyboards, however. It’s about making nearly anything physical a portal into the digital world, and bringing the digital right back into the physical. I met with Eric Rosenbaum, one of the creators, in his lab, which is called “Lifelong Kindergarten” (yeah, I know.) Here’s a short video about Makey Makey:
As the border between physical and digital gets more permeable, a new kind of literacy emerges. And that literacy is built on a foundation of code – whether it’s the codes of letters and words, or the code of bits and algorithms. Rosenbaum showed me Scratch, a graphical programming language used by hundreds of thousands of kids across the world. I’m determined to learn how to code, at least enough to be dangerous (I took classes in Pascal about 30 years ago…). Maybe Scratch is where I’ll start.
Next up I met Dan Novy, from the Lab’s Object-Based Media Group. He showed us a number of great projects he’s working on, including holo-presence (with a sense of humor, see photo at top) and new forms of augmented experience. Check out this video about redefining the home entertainment experience:
Dan also took us into a small room with a voice aware projection device in the center. Using his voice, Dan told a children’s story, and the four walls of the room lit up with visual images related to the storybook. It’s early days, but we discussed what might happen when this device is miniaturized and connected to consumer “narrative catchers” like Facebook, Path, Google Glass, and the like. Also next to the projector was an object – what it is, it doesn’t matter, but for this example it was a bottle of perfume – and when you pick up that object, “memories” related to that object are projected onto the walls. So imagine what might happen when you pick up that ornament from Christmas three years ago and hang it on the tree, and images from that Christmas past flash onto your home’s walls….
The last demo we saw was perhaps the most well known of Dan’s group’s work. In essence, they turned a basketball net into a data collection device, so as to measure the force of a slam dunk. The technology is amazing, watch Dan talk about it here:
The Media Lab is truly an extraordinary place, and seeing it with my son made it even more magical. I’ve toured it a few times now, but I’ll never tire of coming back. The work happening there is helping to define the world all our kids will be living in soon.
It’s been pretty obvious from the stock price, but LinkedIn, which I’ve written about every so often, is really on a roll lately. The influencer content play (which I will admit I’ve been part of, in a small way) is a clear winner, the company is enjoying very positive press, and its premium services are getting really interesting as well.
Just today I got an email from the company titled “What’s new with people you know?” I found it compelling in a way that emails from nearly every other service I use – Twitter, Facebook, or Google – are not. CEO Jeff Weiner tells me that this email has been sent out every six months for the past three years, but it’s clearly been redesigned as more of a media product. I care about my network on LinkedIn, and the email was full of pictures of people who really matter to me, all of whom have gotten new jobs. It’s one of the most engaging messages I’ve ever gotten from a “social network.” (In case you want some history, I called LinkedIn out as a media company more than a year ago here.)
I also found the focus on numbers very interesting. 10% of my network – which is pretty big – have gotten new jobs in the past six months. That’s quite an intriguing lens on how things are changing in our industry. LinkedIn has always been a data-centric company, and each time I speak with Weiner, he’ll cite engaging statistics his team has culled from the network’s servers. This rolls up to Weiner’s big hairy audacious goal (BHAG) for the company – to map the global “economic graph.” As he puts it:
..we want to digitally map the global economy, identifying the connections between people, jobs, skills, companies, and professional knowledge — and spot in real-time the trends pointing to economic opportunities. It’s a big vision, but we believe we’re in a unique position to make it happen.
It seems Wall Street agrees. I’ll be watching LinkedIn more closely over the coming year, and I bet Google and Facebook will be too. Hoffman, Weiner and team have built something that both those companies, and many more, must find quite enviable.
I had a chance to be interviewed with Fred Wilson by Dave Morgan of Simulmedia (and Tacoda and and and…). The video is fun and ranges around from OpenCo to the future of the Web, so I thought I’d share it here:
Last week I was fortunate to be in New York City over the weekend, accompanied by most of my family. I had meetings with senior marketing executives at companies like Coke, Citi, and many others, and they stretched from the previous Weds. all the way into Monday of last week. I hate being away on weekends, and my wife is from New York, so she brought my daughters to visit their grandmother, who lives right in the middle of Manhattan.
Now, a weekend in New York with your family is special anytime, but last weekend was particularly notable because of the annual Pride Parade. This celebration of LGBT rights is one of the largest in the world, and this year’s was historic – just the week before, the Supreme Court had voted down the Defense of Marriage Act, a major civil rights victory for the gay community and, by extension, for citizens across the country. Last Sunday, our family joined tens of thousands of others who cheered the parade down Broadway, marveling at the exuberance and yes, sometimes at the show of skin as well.
But what stuck out with us was the pure joy of the day. Both my daughters, one fifteen, the other nine, joined in the celebrations, waving flags, cheering, and slapping high fives with passersby. Everyone was so happy, and the party snaked down Broadway for hours. What really struck me was the diversity on parade – gay fireman and policemen (that can’t be an easy world to live in) marched in uniform, followed by politicians like Mayor Michael Bloomberg and Sen. Charles Schumer. There were community centers on floats blasting dance music, and a long assortment of “firsts” – the first gay married couple in New York, the oldest married couple in New York, etc.
And then there were the brands. Yes, the brands – sponsoring the parade, and marching as part of it. I was prepared to be disappointed, and even cringed when I saw the first banner announcing a brand – I think it was Vitamin Water, a Coke brand. But instead, I was inspired. I had just met with many of the brands that were represented, and it made me proud to know the folks who had the courage to stand out and stand up for what was right.
As I watched the parade I was struck at how deeply and how honestly these brands were part of the celebration. Sure, Vitamin Water gave out free drinks, but the real story were the legions of employees – from Citi, L’Oreal, Wells Fargo, Coke, Delta and many more who marched, proudly wearing their company’s logo, proud of their individuality, proud of their voice, and proud that their businesses have stood behind them on their journey to this historic day. It felt very real – these companies clearly had backed their people on the long road to full civil rights, and their employees were proud to celebrate their brand connection – they very much believed that in their lives, the brand on their t-shirt had made an important difference. It was a very honest moment, and that’s not always the case when it comes to sponsorships and marketing. It should inspire all of us in the media business to follow the path of true human connection in our work. It certainly inspired me.
It’s been quite a six months, I must say. Personally I took back the reigns at a company I founded in 2005, found a co-author for my book, and hired a CEO for the company I started last year (he starts next week). But I haven’t been writing nearly as much as I’d like here, and that sort of saddens me. However, one of my “half year” resolutions is to change that, and it starts with this review of my Predictions 2013.
This year’s predictions were a bit different in that I wrote about things I *wished* would happen this year, as opposed to those I thought most likely to happen. They were still predictions, but more personal in nature. So let’s see how I did, shall we?
1. We figure out what the hell “Big Data” really is, and realize it’s bigger than we thought (despite its poor name).
Halfway into the year, I think there’s no doubt this conversation has picked up speed dramatically. The PRISM program, in particular, has thrown new light on how “big” big data really is, and what kind of a society we’re becoming as we all become data. I’d say that on this prediction, which was pretty easy to make, we’re well on our way to checking the box as “true.” The bigger point of my prediction had to do with how we, as a society, are coming to grips with the more far reaching implications of all this data. I’ll report back on that at year’s end.
2. Adtech does not capitulate, in fact, it has its best year ever, thanks to … data.
I think so far, I’ve been proven right here. Terry Kawaja, he of the famous Lumascape, has revised his charts to show a more than doubling of the companies in the space this year. While there have been plenty of deals, it doesn’t look like adtech is capitulating at all.
3. Google trumps Apple in mobile
I predicted that Google would come out with an iPhone killer this year, so far, this hasn’t happened (though many do view current Google phones as equal.) There are still six months to go, with the crucial holidays to come.
Also, there are many ways to measure “trumps Apple,” including market share (where Google has already surpassed Apple), profit (where Apple is still killing Google), and the softer “buzz,” which I have to say, Google is winning in my small world. For now, I think the jury is out.
4. The Internet enables frictionless (but accountable) payments, enabling all manner of business models that previously have been unnaturally retarded.
This is a “slow burn” issue, and I think we may look back at 2013 as the year payments got really, really easy. Square, Stripe, and Braintree are leaders here, and I really do sense a breakthrough happening. But I can’t quite prove it at midyear. Many, many startups are using these services as base ingredients for their business models, I can say that.
Related, I also predicted that major consumer-facing online platforms based on “free” – Google and Facebook chief among them, though Twitter is a potential player here as well – will begin to press their customers for real dollars in exchange for premium services. This is undeniably true. Twitter, Facebook, and LinkedIn have all been asking me for money for premium services this year – for advertising my account, or upgrading to “pro” services. This trend is well underway.
5. Twitter comes of age and recommits itself as an open platform.
I just don’t know about this. Honestly, I don’t know. On the one hand, the company has deprecated RSS to the point of it not being usable. On the other hand, the company stands for free and open speech like no other. What do you all think?
6. Facebook embraces the “rest of the web.”
Well, as I said in the beginning, this was a set of predications based on what I wished would happen. I predicted that Facebook would “make it really easy to export your identity and data.” I’m not really seeing anything that merits a “win” here, but maybe I missed a memo.
7. By the end of the year, Amazon will have an advertising business on a run rate comparable to Microsoft.
I think this has already happened if you take out Microsoft’s search business, but we don’t know it for sure because Amazon won’t break out its ads business. More here and here. Anyone have any more insights?
8. The world will learn what “synthetic biology” is, because of a major breakthrough in the field.
Well, given I’m not steeped in current research, I better ask my friend David Kong if this is true yet. David? Hopefully it will be by year’s end!
All in all, I think the predictions are faring well halfway through the year. What did I miss?
This short Slideshare deck, an extremely clever satire of the now infamous NSA slide deck, should be Slideshare’s marketing calling card. It’s a promotional gift to the service, timely, clever, and leveraging the product perfectly. If this ever happens to you, use it in your marketing!
Waaay back in the late 1990s, I started a conference called the Internet Summit. My co-producers were Bill Gurley, who remains one of the giants in venture over at Benchmark, and Mary Meeker, who was at that point the best analyst in the Internet space, at Morgan Stanley. The Internet Summit had its last event in July of 2001, and the space was taken over by Kara Swisher and Walt Mossberg, who went on to launch All Things Digital, which has thrived to this day. I went on to launch the Web 2 Summit in 2004, and it was at that event that Mary started presenting her annual Internet Trends deck. I put her in one of my typical “High Order Bit” slots, ten minutes max, and each year Mary would lobby for more time, and cram more and more data and insights into her alloted time (by the last time Mary did it with me, it was 15 minutes and about 90 slides).
I stopped doing Web 2 in 2011 (OpenCo is the new black, natch), and Mary migrated her job to Kleiner Perkins and her presentation to All Things Digital, both great moves. Last week she unveiled her latest work, and I notice it’s gotten up to 117 slides. I missed All Things D due to a client event at P&G, but I bet she got more than 15 minutes to present it!
This deck is always worth the time to review. You can download it on KPCB’s site, and I’ve embedded it below.