1.5.08

Forget The Influencers

Catalyzing trends has always been an elusive marketing art. Viral and word-of-mouth campaigns have focused on planting seeds with "Influencers" in the hope they will spread the trend to the masses. However, according to new research, any attempt to engineer success through Influencers is almost certainly doomed to failure because Influencers have little or no role in trend generation. Such heresy!

Don't get Duncan Watts started on the Hush Puppies. "Oh, God," he groans when the subject comes up. "Not them." The Hush Puppies in question are the ones that kick off
The Tipping Point, Malcolm Gladwell's best-seller about how trends work. As Gladwell tells it, the fuzzy footwear was a dying brand by late 1994--until a few New York hipsters brought it back from the brink. Other fashionistas followed suit, whereupon the cool kids copied them, the less-cool kids copied them, and so on, until, voilà! Within two years, sales of Hush Puppies had exploded by a stunning 5,000%, without a penny spent on advertising. All because, as Gladwell puts it, a tiny number of superinfluential types ("Twenty? Fifty? One hundred--at the most?") began wearing the shoes.

These tastemakers, Gladwell concluded, are the spark behind any successful trend. "What we are really saying," he writes, "is that in a given process or system, some people matter more than others." In modern marketing, this idea--that a tiny cadre of connected people triggers trends--is enormously seductive. It is the very premise of viral and word-of-mouth campaigns: Reach those rare, all-powerful folks, and you'll reach everyone else through them, basically for free. Loosely, this is referred to as the Influentials theory, and while it has been a marketing touchstone for 50 years, it has recently reentered the mainstream imagination via thousands of marketing studies and a host of best-selling books. In addition to The Tipping Point, there was The Influentials, by marketing gurus Ed Keller and Jon Berry, as well as the gospel according to PR firms such as Burson-Marsteller, which claims "E-Fluentials" can "make or break a brand." According to MarketingVOX, an online marketing news journal, more than $1 billion is spent a year on word-of-mouth campaigns targeting Influentials, an amount growing at 36% a year, faster than any other part of marketing and advertising. That's on top of billions more in PR and ads leveled at the cognoscenti.

Yet, if you believe Watts, all that money and effort is being wasted. Because according to him, Influentials have no such effect. Indeed, they have no special role in trends at all.

In the past few years, Watts--a network-theory scientist who recently took a sabbatical from Columbia University and is now working for Yahoo --has performed a series of controversial, barn-burning experiments challenging the whole Influentials thesis. He has analyzed email patterns and found that highly connected people are not, in fact, crucial social hubs. He has written computer models of rumor spreading and found that your average slob is just as likely as a well-connected person to start a huge new trend. And last year, Watts demonstrated that even the breakout success of a hot new pop band might be nearly random. Any attempt to engineer success through Influentials, he argues, is almost certainly doomed to failure.

"It just doesn't work," Watts says, when I meet him at his gray cubicle at Yahoo Research in midtown Manhattan, which is unadorned except for a whiteboard crammed with equations. "A rare bunch of cool people just don't have that power. And when you test the way marketers say the world works, it falls apart. There's no there there."

And this is not, he argues, mere academic whimsy. He has developed a new technique for propagating ads virally, which can double or even quadruple the reach of an ordinary online campaign by harnessing the pass-around power of everyday people--and ignoring Influentials altogether.

Not everyone appreciates the mind bomb Watts has tossed into their midst. He says one music executive pronounced his work "bullshit" on the spot. But a growing group of marketers believes Watts is radically altering the way companies attempt to produce trends. "He is changing the way people think about the way we communicate," raves Robert Barocci, president of the Advertising Research Foundation. "He's one of the best thinkers in the industry today." But is Watts right?

Watts, ironically enough, is precisely the type of person you'd peg as an Influential: tall, gruff, and handsome; a jut-jawed Navy man who left the service to study engineering. A former rock-climbing addict, he solved his first big intellectual challenge after hanging from a cliff at Joshua Tree. He has written about his work in Harvard Business Review and The New York Times, as well as in his new book Six Degrees. His Australian accent is disarming, even when he's assuring you that everything you believe is probably crap.

Watts's journey into trend research began, improbably, with the snowy tree cricket. As a grad student in the mid-1990s, he was exploring the mystery of how crickets synchronize their chirping. Clearly, information about when to chirp spreads like a contagion through the cricket network; Watts began to wonder how information flowed through human networks.

So he began programming the first computer models of how influence spreads. Like a kid experimenting with The Sims, Watts created a virtual community of individuals, then "infected" one with a "virus"--a virtual disease, or contagious idea--to see how far it would spread. He fiddled with his models, varying the degree and frequency of "exposure" needed to pass along the virus. He noticed that the success of an epidemic varied dramatically with seemingly tiny changes in his virtual society.

Yet even as Watts was conducting his research, marketers were becoming increasingly convinced that trends were the product not of murky social forces, but of charismatic, connected social alphas. In truth, it was an old--even hoary--marketing concept, dating back to 1955, when the pioneering sociologists Elihu Katz and Paul Lazarsfeld wrote Personal Influence. They had argued that advertising affected society through a two-step process: Companies broadcast messages, which were then seized upon by "opinion leaders" who proselytized their peers. They weren't talking about celebrities like Oprah or even Paris Hilton, but about the rare everyday people who catalyze trends. Reach those opinion leaders, Katz and Lazarsfeld argued, and you'd quickly convert the masses.

Gladwell reanimated this concept in The Tipping Point. To help illustrate the cultural sway of his hypernetworked protagonists, he tapped the renowned 1967 "Six Degrees of Separation" study by sociologist Stanley Milgram. In that experiment, Milgram had given letters to 160 people in Nebraska, with instructions to ferry them to a particular stockbroker in Boston by passing the letters along to a colleague socially closer to the target. It famously took roughly six links to deliver each letter. But in a finding that particularly excited Gladwell, it was the same three friends of the stockbroker who provided the final link for half the letters that arrived successfully. They were the Connectors, as Gladwell dubbed them, who govern the flow of social information. If you wanted to get to that stockbroker, you couldn't approach just anyone. You had to go through those three friends. Possessed of huge Rolodexes, these folks are the gatekeepers, Gladwell wrote, "and the rest of us are linked to the world through those special few."

Gladwell's book laid out many other factors that can "tip" a trend. He described other influential types: Mavens, who love to collect information and help others make decisions, and suave Salesmen of ideas. In order to spread, an idea or product had to be "sticky," and appear in a fertile social context. But as The Tipping Point climbed the charts, marketers fixated on Gladwell's Law of the Few, his suggestion that rare, highly connected people shape the world. For anyone involved in pitchmanship, it was an electrifying notion, one that took a highly complex phenomenon--the spread of memes through society--and made it simple. Reach the gatekeepers, and you reach the world.

Marketers seized on Malcolm Gladwell's "Law of the Few," his suggestion That rare, highly connected people shape the world.

But Watts, for one, didn't think the gatekeeper model was true. It certainly didn't match what he'd found studying networks. So he decided to test it in the real world by remounting the Milgram experiment on a massive scale. In 2001, Watts used a Web site to recruit about 61,000 people, then asked them to ferry messages to 18 targets worldwide. Sure enough, he found that Milgram was right: The average length of the chain was roughly six links. But when he examined these pathways, he found that "hubs"--highly connected people--weren't crucial. Sure, they existed. But only 5% of the email messages passed through one of these superconnectors. The rest of the messages moved through society in much more democratic paths, zipping from one weakly connected individual to another, until they arrived at the target.

Why did Milgram get it wrong? Watts thinks it's simply because his sample was so small--only a few dozen letters reached their mark. The dominance of the three friends could have been a statistical accident. "And since Milgram's finding sort of made sense, nobody even bothered to redo the experiment," Watts shrugs. But when you perform the experiment with hundreds of successfully completed letters, a different picture emerges: Influentials don't govern person-to-person communication. We all do.

The more Watts examined the theory of Influentials, the less sense it made to him. The problem, he explains over lunch in a Midtown restaurant, is that it's incredibly vague. None of its proponents ever clearly explain how an Influential actually influences.

"It sort of sounds cool," Watts says, tucking into his salad. "But it's wonderfully persuasive only for as long as you don't think about it." For example, in The Influentials, Keller and Berry argue that trendsetters draw their social power from being active in their communities. Their peers naturally turn to them for advice. Need to buy a new car or navigate city hall? Everyone knows whom to trust. Gladwell, for his part, argues that trends spread like diseases; Influentials are the vectors who amplify and propagate the infection.

Fair enough, as a top-down view. But it's murky, and for Watts, this is a critical flaw, because precision matters when you're trying to explain highly social epidemics. Merely arguing that influence spreads like a disease isn't enough, because, he says, diseases spread in very different ways. Some require multiple exposures; some don't. Some reward "superspreaders," and some don't. (SARS broke out in Hong Kong not because the first victim was a superspreader but because a doctor mistakenly hooked him up to an aspirator--ventilating SARS-infected breath into the hospital air.)

As Watts argues, there are a lot of ways an Influential could convert the masses. Merely talking to a friend once could infect her with an idea. Or it might take several conversations. Or maybe Influentials are so persuasive they're like trend vampires, and each victim they bite becomes hyperpersuasive too. Depending on how you define the specific mechanics of influence, you'd get totally different types of epidemics--or maybe none at all. But gurus of the Influentials theory never directly clarify these mechanics.

"All they'll ever say," Watts insists, is that a) there are people who are more influential than others, and b) they are disproportionately important in getting a trend going.

That may be oversimplifying it a bit, but last year, Watts decided to put the whole idea to the test by building another Sims-like computer simulation. He programmed a group of 10,000 people, all governed by a few simple interpersonal rules. Each was able to communicate with anyone nearby. With every contact, each had a small probability of "infecting" another. And each person also paid attention to what was happening around him: If lots of other people were adopting a trend, he would be more likely to join, and vice versa. The "people" in the virtual society had varying amounts of sociability--some were more connected than others. Watts designated the top 10% most-connected as Influentials; they could affect four times as many people as the average Joe. In essence, it was a virtual society run--in a very crude fashion--according to the rules laid out by thinkers like Gladwell and Keller.

Watts set the test in motion by randomly picking one person as a trendsetter, then sat back to see if the trend would spread. He did so thousands of times in a row.

The results were deeply counterintuitive. The experiment did produce several hundred societywide infections. But in the large majority of cases, the cascade began with an average Joe (although in cases where an Influential touched off the trend, it spread much further). To stack the deck in favor of Influentials, Watts changed the simulation, making them 10 times more connected. Now they could infect 40 times more people than the average citizen (and again, when they kicked off a cascade, it was substantially larger). But the rank-and-file citizen was still far more likely to start a contagion.

Why didn't the Influentials wield more power? With 40 times the reach of a normal person, why couldn't they kick-start a trend every time? Watts believes this is because a trend's success depends not on the person who starts it, but on how susceptible the society is overall to the trend--not how persuasive the early adopter is, but whether everyone else is easily persuaded. And in fact, when Watts tweaked his model to increase everyone's odds of being infected, the number of trends skyrocketed.

"If society is ready to embrace a trend, almost anyone can start one--and if it isn't, then almost no one can," Watts concludes. To succeed with a new product, it's less a matter of finding the perfect hipster to infect and more a matter of gauging the public's mood. Sure, there'll always be a first mover in a trend. But since she generally stumbles into that role by chance, she is, in Watts's terminology, an "accidental Influential."

Perhaps the problem with viral marketing is that the disease metaphor is misleading. Watts thinks trends are more like forest fires: There are thousands a year, but only a few become roaring monsters. That's because in those rare situations, the landscape was ripe: sparse rain, dry woods, badly equipped fire departments. If these conditions exist, any old match will do. "And nobody," Watts says wryly, "will go around talking about the exceptional properties of the spark that started the fire."

It should come as no surprise that marketers have not all warmed to Watts's work. In September, he presented his findings to a standing-room-only crowd at a meeting of the Advertising Research Foundation. Ed Keller--The Influentials coauthor himself--then gave a polite but heated rebuttal.

Watts's computer models are "interesting," Keller admitted, but too academic to reflect reality. In contrast, Keller argues, his firm has studied tens of thousands of Influentials by identifying people highly active in their communities, an elite 10% that engage in advice-giving conversation up to five times more frequently than the average American. "They're fonts of word of mouth," Keller insists. And ahead of the curve, too: In the 20 years he has been polling them, Keller has found they began using computers, mobile phones, and the Internet years before the mainstream. What's more, his polls have found that more than two-thirds of people who get word-of-mouth product recommendations either buy something based on it, or plan to.

"The data are crystal clear," Keller adds, when I call him up. "They give and receive advice more. If I had $100 to spend, and I could spend it focusing on the mass market or I could put some chips on a group that could get me somewhere between two and five times as much energy with word of mouth, well, they're going to get my message out more quickly and more efficiently." He points to a recent example: Before Nintendo launched its hugely successful Wii video-game console last year, it handed out thousands of demo units to "mom influencers" around the country, creating a "built-in base of evangelists."

In any case, Keller concludes, "Duncan is making a straw-man argument. Because nobody, including myself, thinks that Influencers are the only group of consumers who matter."

Keller makes good points (although it's a bit hard to swallow his last assertion, given that the subtitle of his book flatly states that "one American in 10 tells the other 9 how to vote, where to eat, and what to buy"). And even Watts, for all his bombast, can be quite self-critical. "My models might be totally wrong," he says cheerfully. "But at least I'm clear about what I'm saying. You can look at them, and tell me if you disagree. But none of these other thinkers are actually clear about what they're saying. You can't tell if they're wrong."

No researcher, he points out--including Keller--ever analyzes interactions between specific Influentials and the friends they're supposedly influencing; no one observes influence in action. In essence, Keller appeals to common sense--our intuitive sense of how the world works. Watts thinks common sense is misleading.

Mind you, Watts does agree that some people are more instrumental than others. He simply doesn't think it's possible to will a trend into existence by recruiting highly social people. The network effects in society, he argues, are too complex--too weird and unpredictable--to work that way. If it were just a matter of tipping the crucial first adopters, why can't most companies do it reliably?

As Watts points out, viral thinkers analyze trends after they've broken out. "They start with an existing trend, like Hush Puppies, and they go backward until they've identified the people who did it first, and then they go, 'Okay, these are the Influentials!'" But who's to say those aren't just Watts's accidental Influentials, random smokers who walked, unwittingly, into a dry forest? East Village hipsters were wearing lots of cool things in the fall of 1994. But, as Watts wondered, why did only Hush Puppies take off? Why didn't their other clothing choices reach a tipping point too?

For his part, Gladwell is diplomatic. "Duncan Watts is exceedingly clever, and I've learned a great deal from his research," he emailed me. "In the end, though, I suppose that I feel the same ways about his insights as I do about Steve Levitt's disagreements with me over the causes of the decline in violent crime in the 1990s. I think that all books like The Tipping Point or articles by academics can ever do is uncover a little piece of the bigger picture, and one day--when we put all those pieces together--maybe we'll have a shot at the truth."

Marketing, of course, has always relied heavily on instinct and intuition. Admen like to believe they're creative geniuses, gifted at truffling out social trends (which is why, they hasten to point out, they're irreplaceable). Joe Pilotta, research VP for a firm called Big Research (and one of Watts's bigger fans), suspects marketers cling to their belief in Influentials partly because they're lazy. They love the idea of needing to reach only a small group of people to "tip" a product, he says with a laugh. Plus, it strokes their egos: "Think about it. You're saying, 'I am in control--I am the biggest influencer, because I am going to influence the influencers!' It's an arrogance that only the corporate world could enjoy."

But the Internet has cranked up the pressure to show a return on advertising dollars, spawning incipient panic at agencies worldwide. It is into this world that Watts has injected himself, with his unwelcome insistence that basic marketing wisdom be tested scientifically. "The whole reason why Duncan's work upsets people," Pilotta points out, "is that he demonstrates that the world is complex, that it's not that easy."

Actually, if you believe Watts, the world isn't just complex--it's practically anarchic. In 2006, he performed another experiment that chilled the blood of trendologists. Trends, it suggested, aren't merely hard to predict and engineer--they occur essentially at random.

Watts wanted to find out whether the success of a hot trend was reproducible. For example, we know that Madonna became a breakout star in 1983. But if you rewound the world back to 1982, would Madonna break out again? To find out, Watts built a world populated with real live music fans picking real music, then hit rewind, over and over again. Working with two colleagues, Watts designed an online music-downloading service. They filled it with 48 songs by new, unknown, and unsigned bands. Then they recruited roughly 14,000 people to log in. Some were asked to rank the songs based on their own personal preference, without regard to what other people thought. They were picking songs purely on each song's merit. But the other participants were put into eight groups that had "social influence": Each could see how other members of the group were ranking the songs.

Watts predicted that word of mouth would take over. And sure enough, that's what happened. In the merit group, the songs were ranked mostly equitably, with a small handful of songs drifting slightly lower or higher in popularity. But in the social worlds, as participants reacted to one another's opinions, huge waves took shape. A small, elite bunch of songs became enormously popular, rising above the pack, while another cluster fell into relative obscurity.

But here's the thing: In each of the eight social worlds, the top songs--and the bottom ones--were completely different. For example, the song "Lockdown," by 52metro, was the No. 1 song in one world, yet finished 40 out of 48 in another. Nor did there seem to be any compelling correlation between merit and success. In fact, Watts explains, only about half of a song's success seemed to be due to merit. "In general, the 'best' songs never do very badly, and the 'worst' songs never do extremely well, but almost any other result is possible," he says. Why? Because the first band to snag a few thumbs-ups in the social world tended overwhelmingly to get many more. Yet who received those crucial first votes seemed to be mostly a matter of luck.

Word of mouth and social contagion made big hits bigger. But they also made success more unpredictable. (And it's worth noting, no one in the social worlds had any more influence than anyone else.) So yes, Watts figures, if you rewound the world to 1982, Madonna would likely remain a total unknown--and someone else would have slipped into her steel-tipped corset. "You cannot predict in advance whether a band gets this huge cascade of popularity, because the social network is liable to throw up almost any result," he marvels.

Predictably, the music industry received the analysis--"Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market," published in Science in 2006--with a cocked eyebrow. When Watts presented his findings to executives at a major record label last spring, the younger among them were reasonably receptive. They're accustomed to the unpredictability of hit-making online, so they can grasp the terrifying randomness of success.

But the older execs?

Watts laughs. "They were all like, 'I think it's bullshit. I'm still going to go with my gut,'" he recalls. "And I'm like, Okay, good luck to you. You're going to need it."

If Influentials cannot tip a trend into existence--and if success in a networked society is quite random--what's a poor marketer to do? Is there any way to intentionally infect people with an idea or a product?

Watts believes there is. In the past three years, he has worked on a new form of advertising he calls Big Seed marketing (this is part of his work at Yahoo, where he is a principal research scientist). Watts developed the concept with a friend, Jonah Peretti, a veteran of the viral wars. While a student at MIT in 2001, Peretti had an email exchange with Nike that turned into an accidental pass-around hit, reaching 50 million people and catapulting him onto the Today show. A year or so later, a satirical Web site Peretti created in one weekend--blackpeopleloveus.com--amassed 30 million page views in a few weeks. Soon, companies were frantically trying to hire him to help their online ad campaigns "go viral." Peretti partly disagrees with Watts about the randomness of trends; he thinks it's possible to intentionally make a funny Web site into a pass-around hit online. But as Peretti discovered, real-world goods are harder. When he tried to pitch "some company's shitty product," he couldn't force it to go viral.

In their hunt for a practical way to create maximum exposure for any given ad, Watts and Peretti developed a way to marry the benefits of old-school mass marketing with clever six-degrees effects. Their first test case came when the Brady Campaign, the gun-control group, asked for help with an online petition.

Watts and Peretti set up a regular mass-market ad buy, running banner ads on several prominent blogs and news sites. Like many ads these days, they added a button on the ad that allows people to forward the ad to a friend--a way of collecting eyeballs for free. Typically, people ignore this "share with your friends" pitch. But Watts and Peretti included technology called ForwardTrack, which displays the route the ad travels once you've forwarded it. This turned ad forwarding into a piece of social cartography. People would pass the ad specifically to those friends most likely to keep it moving. It became a Facebook-like contest to sign up the most friends.

The technique marries Watts's two main epiphanies: Cascades require word-of-mouth effects, so you need to build a six-degrees effect into an ad campaign; but since you can never know which person is going to spark the fire, you should aim the ad at as broad a market as possible--and not waste money chasing "important" people. And it worked. The pass-around effect doubled the number of people who saw the Brady Campaign's ad. They paid for 22,582 hits and received an additional 31,590 for free. Another campaign they ran for the Oxygen network quadrupled the audience size, adding 23,544 hits to the initial 7,064.

Neither was, technically, a viral hit. Neither passed the disease threshold, where the meme spreads exponentially and engulfs the mainstream. "But you can double your impact, which is still pretty good," Watts says.

The ultimate irony of Watts's research is that, if you really buy it, the most effective way to pitch your idea is ... mass marketing. And that is precisely what the wizards of Madison Avenue, presiding over our zillion-channel microniche market, have rejected as obsolete. "But that's the thing about magic," says Watts. "If it sounds too good to be true, it probably is."

Clive Thompson is a Fast Company contributing writer. His article "Motorhead Messiah" appeared in the November 2007 issue.


Source - Fast Company

The Future Of Marketing

It's an exciting time to be a marketer. Strategies are being redrawn as the explosion of alternative forms of media have forced our environment into an undefined state of flux and opportunity where "content" is king. the following slideshow will hold your hand as it drags you into this brave new world.

Click here for to access the slideshow.

Source - Punk Planning

Slow Down & Listen To What We Have To Say

One way to get your audience to register your brand message is to trick them! Although not advisable, played right, this strategy can lead to interesting creative. The following is a glimpse of some work from Turkey (yes, Turkey) that tricks the audience while still speaking to the service being marketed.

This April Fools watch out for Jokers, they’re everywhere!! If you live in turkey and you pass by this Billboard Ad Created by Isbank don’t be fooled, because the police car hiding behind the billboard is a fake. It makes the passer by decelerate and read the text on the board which is “Pay your traffic tickets on time without waiting in line - isbank.com.tr”.

"The billboard meant for promoting isbank.com.tr that facilitates online payment of traffic tickets. The billboard was strategically placed on a highway of Turkey in such a manner that a driver from distance will notice a police car hiding behind the billboard. (adpunch.org)"


Fake Police Car Behind Billboard - IsBank Ad Gets Your Attention Fake Police Car Behind Billboard - IsBank Ad Gets Your Attention




Source - Trendhunter

The Next Facebook

Facebook still reins king of the Canadian social network scene but there are a few players on the horizon worth keeping an eye on. Bebo is said to be a hybrid of Facebook and MySpace platforms. One of the leading features of the network is the video streaming and sharing capabilities. The following is a short synopsis of the network.

MySpace isn’t the only site riding the social networking trend: rival Bebo is growing like a weed. Bebo even looks set to overtake MySpace in the UK market, according to the Guardian. (Nonetheless, the Guardian published a similar article last month claiming that FaceParty was the biggest threat to MySpace in the UK, so take it with a pinch of salt). From the site:

"Bebo is the next generation social networking site where members can stay in touch with their College friends, connect with friends, share photos, discover new interests and just hang out. From previous experience, the people who work at Bebo have learned a lot about what makes social networks fun, and believe that with Bebo they’ve taken social networking to the next level."

Essentially, Bebo is MySpace meets Facebook. It also provides video sharing (via VideoEgg widgets) and built-in Skype presence. While the designs may be more controlled than MySpace pages, most of Bebo’s success seems to arise from network effects - users join Bebo because everyone else is using the site. By the same token, Bebo may have trouble expanding to other markets, since these networks can be self-reinforcing.

Source - Mashables

Marketing Strategy 2.0

Brand engagement and consumer interaction are today's hot ticket marketing strategies. The McDonald's Olympic initiative "The Lost Rings" is an excellent example of a 2.0 marketing strategy. Notice the lack of branding in the campaign.

NOT known for its dark marketing, McDonald’s is more a try-our-new-salad, get-your-Shrek-action-figure, look-at-our-dollar-menu sort of place.

For that reason, gamers were surprised to learn that McDonald’s was the sponsor of an enigmatic Olympic-themed online game called The Lost Ring, introduced last month. Nothing about the game was branded McDonald’s, and the game’s Web sites — mysterious and hip, like “Lost” mixed with “The Blair Witch Project”— were a far cry from the golden arches.

“The Olympics in Beijing are a very big event for us, and we have a lot of different types of activation, with The Lost Ring being the most creative,” said Mary Dillon, McDonald’s global chief marketing officer. “Our goal is really about strengthening our bond with the global youth culture.”

The Lost Ring is part of a gaming genre called alternate-reality games that blend online and offline clues and rely on players collaborating to solve the puzzles.

While corporate sponsorship of these games is common — a popular one called The Beast was created by Microsoft for the Warner Brothers film “A.I.: Artificial Intelligence” — this is McDonald’s first foray into the genre.

The game began with 50 bloggers receiving packages with an Olympic-themed poster and a clue pointing them to TheLostRing.com. The site presented a dramatic trailer, replete with sci-fi lighting and a narrator with a British-accented baritone speaking over scenes of a woman waking up in a field with “Trovu la ringon perditan” — an Esperanto phrase — tattooed on her arm.

Within a day or two, as players searched for clues, they found the terms of service on the Web site, which revealed that McDonald’s, in partnership with the International Olympic Committee, was behind the game.

“I think finding out that it was McDonald’s was kind of a big shock for everyone,” said Geoff May, a player in Ontario who founded a Web site (olympics.wikibruce.com) on the game. “Obviously it’s McDonald’s, and not everyone likes them,” he said. “Personally, I don’t mind as long as we don’t get products forced down our throat. If we’re getting McDonald’s meals sold by characters, it’s going to be hard to suspend our disbelief.”

That’s part of the reason McDonald’s has remained behind the curtain thus far. A successful alternate-reality game relies on the players’ continuing interest.

“If an A.R.G. is too clearly corporate or commercial, the gamers will not want to engage,” said Tracy Tuten, an associate professor at Virginia Commonwealth University, who studies new-media marketing tools. “It’s very important that the game be written in a way where the branding is not obvious.”

McDonald’s has been careful to reflect that, Ms. Dillon said. “Above all, we want to be credible, authentic and respectful to this new audience,” she said.

With that in mind, development of the game was given to AKQA, a San Francisco marketing agency, and Jane McGonigal, a game developer.

When released in early March, the game was available in seven languages. Ten characters provide clues via YouTube videos, blogs, Flickr photos and Twitter updates. Online clues are supplemented by offline ones: last week, players found documents in a Tokyo mailbox and a bookstore fireplace in Johannesburg.

The clues have helped players deduce the outline of the game, which centers on a lost Olympic sport that one plays blindfolded. Soon, Ms. McGonigal said, players will be asked to participate in the sport in the real world.

The game is scheduled to run through Aug. 24, the Olympics closing ceremony. “I think the players will be very happy to discover that around the closing ceremonies, there is a real-world payoff to their alternate-reality heroics,” Ms. McGonigal said. She was, in keeping with the game’s spirit, cryptic about what that payoff would be, though she hinted that the city of Beijing might be involved.

McDonald’s would not disclose the cost of the campaign, though Ms. Dillon said that “in the context of the total Olympics, it’s just a fraction of what we’re doing.” As for measuring the return on the company’s investment, Ms. Dillon said she saw it as more of a learning experience. “You can’t put an R.O.I. on this,” she said.

McDonald’s said the game had attracted 150,000 players so far, with 70 percent of traffic from outside the United States.

Both the quiet sponsorship and the game itself are unusual for McDonald’s. But the company does aim for the youth market, which overlaps neatly with the fan base for alternate-reality games. If those gamers develop new respect for McDonald’s, it would be a marketing coup.

“The players appreciate that they got this good experience for free,” said Sean C. Stacey, the founder of the gaming fan site Unfiction. “That tends to create a stronger bond between the player and the brand than having a straight advertisement.”

Source - New York Times

Spring Youth Trends

If your market is the elusive teen demographic you are going to want to take a gander at the following observations. Find out what's up with teens this spring with insights such as "Facebook Fatigue" and "The Rise Of The Moderates". What!! Did you expect Facebook to be hot forever?

The fitness landscape that determines success in marketing to young consumers is changing. 10 years ago, the TV provided the de facto advertising channel to win the hearts and minds of this often difficult to reach demographic. Since 2007 alone, the rise of social networking, flat rate data plans both on mobile and internet as well as a widespread growth in niche media content means that marketers are now increasingly challenged when it comes to both communicating with and understanding youth.

But fear not, because we bring you insight from two of the youth marketing industry’s key commentators to shed some light on what’s hot in 2008 when it comes to trends in youth marketing.

Graham Brown author of mobileYouth and Luke Mitchell from Reach Students bring you the 7 key youth marketing trends to look out for in 2008.

#1 “Free” is a viable business model

Given the increasingly challenging task of reaching out to young consumers, more brands consider the “free” route (eg ad supported or cross-selling) as a viable alternative to paid downloads.

Recent download data from NIN and Radiohead’s respective attempts at “pay what you like” charging models demonstrates that allowing the consumer to decide what value should be placed on the relationship and content can be both profitable and a shrewd PR move.

But it’s not just music artists trying to crack the “free” nut but delving deeper we find well established brands from RyanAir to Google to Skype making money out of young consumers by giving away goods and services others would traditionally have paid for.

Blyk’s attempt to crack the mobile industry nut claims that rather than bring to the telecoms table yet another fledgling MVNO, the startup says the operator’s position is a response to a market need - on the one hand young consumers are keen to have subsidized phone bills and the other we have a line of brands queueing up to build a dialogue with young consumers.

Youth indifference may well prove to be a brand’s most significant cost factor so offering a service for free with the promise of cross-selling related services may well provide the first tentative steps in addressing that challenge.

#2 Transparency

When things go wrong, as they inevitably do, legal eagles compete with internal marcomms departments to issue the highest volume of memos all in the name of Brand IP and protecting corporate interest.

Some of the more innovative brands, however, are going long on being transparent about their values and mistakes when communicating with youth. Household names such as Jet Blue, GAP, Starbucks are learning the hard way that covering up no longer works and consumers, especially the younger ones, warm to companies that admit their human fallacies.

Consumers are tired of being both whitewashed and stonewalled. In an era when youth expect access and brands are willing to provide it, the company CEO that appears on YouTube confessing they’d “screwed up” may lose a few investor friends, but wins the long term hearts and minds of the consumer.

After all, he is like us - human. And people buy people, not brands.

#3 Facebook fatigue

It’s now all about 30 somethings in the world of Facebook. Youth are already exploring new avenues more relevant to their lifestyle - such as Bebo. Do we yet have a student specific SNS?

MySpace’s partnership with MTV to platform young musical talent from the social network is a PR victory in the face of a Facebook population disillusioned with their parents and corporates hijacking the party.

Back in the 80s, youth witnessed their parents squeezing into a pair of Levi’s 501s. No longer was the “original jean” cool because it failed to evolve its consumer relevance in as much as SNS sites seek the latest widget to keep themselves alive.

MySpace continues to thrive despite the naysayers, Facebook however is not the youth player it once was.

#4 The rise of the moderates

You know that student activism is finally dead when even NUS suggests a radical reform of its own organisation. It wants to move away from discussing minority issues and global affairs, and instead reflect the everyday interests of its members.

Individually, most students have a moderate and parochial political outlook these days, more concerned with the price of their Bacardi & Coke than any ethical questions that may come served with it. But now this swell of moderate opinion has become a determined movement.

Look out for a new generation of young leaders, keen to show the world how pragmatic they can be.

#5 “Inner circle” brands

Once young consumers were thought to be naïve and persuadable. Then they were savvy, fickle and cynical to brand messages. What followed was a stalemate where wise brands and young consumers knew each others’ hands and knew it would be foolish to pretend otherwise. Then things got complex.

The brands that are winning now have been allowed into a collective inner circle, one where they carefully manage very sophisticated and very considered relationships. Recent research by Opinionpanel discovered a maximum of twenty brands that students were willing to be Facebook friends with. They included Sony, H&M, Apple and Innocent.

But there is also space in the inner circle for maverick brands who don’t give a damn for high-level marketing approaches. In convenience foods this year, watch as sales of plain, honest and simple Pukka Pies rise, while youth ‘try hards’ like Pot Noodle fall.

#6 It’s cool to be a suit

In the eyes of the young, businesspeople were once the least cool people in the world. Now it’s okay to want to be a suit.

Thanks to Dragon’s Den, The Apprentice, a second wave of internet entrepreneurs (spiritually led by youth icon Mark Zuckerberg), media dramatisation of financial news and ever-increasing opportunities to make money from your bedroom computer, business is somehow sexy.

Witness the clamour of smart twenty-somethings trying to get in to London’s must-see gig of last term. Not “Hot Chip” at the Electric Ballroom, but investment bankers BNP Paribas at the LSE.

#7 Youth turn off the box

The current generation of young consumers are perhaps the first that have had real choice in their media consumption. TV, although remaining a significant channel of influence in their lives, is increasingly being squeezed out by other distractions. Facebook, MySpace, WII, homework, after-scool activities, commuting and just good old “hanging out with friends” compete with TV for youth attention.

And it’s not just the decreasing time spent watching TV, it’s the quality of that time. According to the Kaiser Family Foundation, 25% of high school students were actively involved in another form of media (playstation, computer etc) whilst “watching” TV. Add to that the increasing fragmentation of media channels (MTV1, MTV2, MTVBase, MTVU etc) you find a situation where advertisers can no longer identify clear front-runners for their marketing spend.

Source - MobileYouth

Cheeks Not Geeks

What images come to mind when you picture a blogger or internet junkie? Probably not thoughts of braces and giggling girls. Surprisingly, today's primary creators of web content aren't your stereotypical geek but are in fact teenage girls. OMG! You gotta check it out!!

The prototypical computer whiz of popular imagination — pasty, geeky, male — has failed to live up to his reputation.

Research shows that among the youngest Internet users, the primary creators of Web content (blogs, graphics, photographs, Web sites) are not misfits resembling the Lone Gunmen of “The X Files.” On the contrary, the cyberpioneers of the moment are digitally effusive teenage girls.

“Most guys don’t have patience for this kind of thing,” said Nicole Dominguez, 13, of Miramar, Fla., whose hobbies include designing free icons, layouts and “glitters” (shimmering animations) for the Web and MySpace pages of other teenagers. “It’s really hard.”

Nicole posts her graphics, as well as her own HTML and CSS computer coding pointers (she is self-taught), on the pink and violet Sodevious.net, a domain her mother bought for her in October.

“If you did a poll I think you’d find that boys rarely have sites,” she said. “It’s mostly girls.”

Indeed, a study published in December by the Pew Internet & American Life Project found that among Web users ages 12 to 17, significantly more girls than boys blog (35 percent of girls compared with 20 percent of boys) and create or work on their own Web pages (32 percent of girls compared with 22 percent of boys).

Girls also eclipse boys when it comes to building or working on Web sites for other people and creating profiles on social networking sites (70 percent of girls 15 to 17 have one, versus 57 percent of boys 15 to 17). Video posting was the sole area in which boys outdid girls: boys are almost twice as likely as girls to post video files.

Explanations for the gender imbalance are nearly as wide-ranging as cybergirls themselves. The girls include bloggers who pontificate on timeless teenage matters such as “evil teachers” and being “grounded for life,” to would-be Martha Stewarts — entrepreneurs whose online pursuits generate more money than a summer’s worth of baby-sitting.

“I was the first teenage podcaster to receive a major sponsorship,” said Martina Butler, 17, of San Francisco, who for three years has been recording an indie music show, Emo Girl Talk, from her basement. Her first corporate sponsorship, from Nature’s Cure, an acne medication, was reported in 2005 in Brandweek, the marketing trade magazine.

Since then, more than half a dozen companies, including Go Daddy, the Internet domain and hosting provider, have paid to be mentioned in her podcasts, which are posted every Sunday on Emogirltalk.com.

“It’s really only getting bigger for me,” said Martina, an aspiring television and radio host who was tickled to learn about the Pew study.

“I’m not surprised because girls are very creative,” she said, “sometimes more creative than men. We’re spunky. And boys ... ” Her voice trailed off to laughter.

The “girls rule” trend in content creation has been percolating for a few years — a Pew study published in 2005 also found that teenage girls were the primary content creators — but the gender gap for blogging, in particular, has widened.

As teenage bloggers nearly doubled from 2004 to 2006, almost all the growth was because of “the increased activity of girls,” the Pew report said.

The findings have implications beyond blogging, according to Pew, because bloggers are “much more likely to engage in other content-creating activities than nonblogging teens.”

But even though girls surpass boys as Web content creators, the imbalance among adults in the computer industry remains. Women hold about 27 percent of jobs in computer and mathematical occupations, according to the Bureau of Labor Statistics.

In American high schools, girls comprised fewer than 15 percent of students who took the AP computer science exam in 2006, and there was a 70 percent decline in the number of incoming undergraduate women choosing to major in computer science from 2000 to 2005, according to the National Center for Women & Information Technology.

Scholars who study computer science say there are several reasons for the dearth of women: introductory courses are often uninspiring; it is difficult to shake existing stereotypes about men excelling in the sciences; and there are few female role models. It is possible that the girls who produce glitters today will develop an interest in the rigorous science behind computing, but some scholars are reluctant to draw that conclusion.

“We can hope that this translates, but so far the gap has remained,” said Jane Margolis, an author of “Unlocking the Clubhouse: Women in Computing” (MIT Press, 2002). While pleased that girls are mastering programs like Paint Shop Pro, Ms. Margolis emphasized the profound distinction between using existing software and a desire to invent new technology.

Teasing out why girls are prolific Web content creators usually leads to speculation and generalization. Although girls have outperformed boys in reading and writing for years, according to the National Center for Education Statistics, this does not automatically translate into a collective yen to blog or sign up for a MySpace page. Rather, some scholars argue, girls are the dominant online content creators because both sexes are influenced by cultural expectations.

“Girls are trained to make stories about themselves,” said Pat Gill, the interim director for the Institute for Communications Research and an associate professor of gender and women’s studies at the University of Illinois at Urbana-Champaign.

From a young age they learn that they are objects, Professor Gill said, so they learn how to describe themselves. Historically, girls and women have been expected to be social, communal and skilled in decorative arts.

“This would be called the feminization of the Internet,” she said.

Boys, she added, are generally taught “to engage in ways that aren’t confessional, that aren’t emotional.”

Research by the Berkman Center for Internet & Society at Harvard Law School, the result of focus groups and interviews with young people 13 to 22, suggests that girls’ online practices tend to be about their desire to express themselves, particularly their originality.

“With young women it’s much more about expressing yourself to others in the way that wearing certain clothes to school does,” said John Palfrey, the executive director of the Berkman Center. “It ties into identity expression in the real world.”

That desire is never so evident as when girls criticize online copycats who essentially steal their Web page backgrounds and graphics by hotlinking (linking to someone else’s image so it appears on one’s own Web page). Aside from depleting bandwidth, it is the digital equivalent of arriving at a party wearing the same dress as another girl, Professor Palfrey said.

No wonder that girls post aggressive warnings on their sites such as “Do not jock, copy, steal, or redistribute any of my stuff!” or, more to the point: “hotlink and die.”

While creating content enables girls to experiment with how they want to present themselves to the world, they are obviously interested in maintaining and forging relationships.

When Lauren Renner, 16, was in fifth grade, she and a friend, Sarada Cleary, now 14, both of Oceanside, Calif., began writing about their lives on Agirlsworld.com, an interactive e-zine with articles written for and by girls.

“Girls from everywhere would read it and would ask questions about what they should do with a problem,” Lauren said. “I think girls like to help with other people’s problems or questions, kind of, like, motherly, to everybody.”

Today Lauren and Sarada are among more than 1,000 girls who regularly submit content to Agirlsworld. They make a few extra dollars writing online articles and dreaming up holiday-related activities, like Mother’s Day breakfast recipes, which are posted on the site.

“At school there’s just a certain type of people,” Sarada said. “They’re just local. Online you get to experience their culture through them.”

THE one area where boys surpass girls in creating Web content is posting videos. This is not because girls are not proficient users of the technology, Professor Palfrey said. He suggested, rather, that videos are often less about personal expression and more about impressing others. It’s an ideal way for members of a subculture — skateboarders, snowboarders — to demonstrate their athleticism, he said.

Zach Saltzman, 17, of Memphis, said content creation among his circle of male friends includes having a Facebook profile and posting videos of lacrosse games and original short films on YouTube.

“I actually really never thought about doing my own Web site,” said Zach after returning from an SAT class.

He hasn’t posted a video himself and doesn’t have a blog because, as he put it, “it really never interested me and I don’t have time to keep up with it.”

Zach does, however, have a Facebook profile where he uploads digital photographs.

“It’s really the only way I keep my pictures organized because I don’t make photo albums and stuff like that,” he said.

Asked whether the findings of the Pew study seemed accurate to him, he said: “That’s what I see happening. The girls are much more into putting something up and getting responses.”

Source - New York Times

Benchwarmer - Mobile Marketing

We know mobile is one of the next big areas for marketers yet it hasn't taken off in North America. Which might explain why marketers aren't taking advantage of this yet-to-explode communications channel. The following examines why 2008 will once again not be the year for mobile.

Each year since about 2000-and maybe even before-has been wrongly touted as the year of mobile marketing. And this year won't be it either, despite the we're-not-kidding-this-time rhetoric being spouted by mobile-marketing boosters converging for telecom's big powwow in Las Vegas this week. Here are five reasons why-and five fixes that could make 2009 the year the channel becomes really, truly, we're-not-joking meaningful.

Challenge No. 1: Reach (or lack thereof)

Of the 219 million U.S. wireless subscribers, just over 30 million are on data plans, according to M:Metrics. That means more than 86.1% still use mobile devices primarily for talk, which isn't optimal for mobile marketing; most mobile-advertising tactics require subscribers to have pricey data plans. The growth of mobile websites accessed via those data plans is also a crucial component for increasing mobile-ad inventory. The mobile web "isn't a great experience, and it's not generating enough demand," said Julie Ask, a Jupiter Research analyst. In a recent Jupiter study, lack of audience topped the list of reasons marketers said they were not using mobile marketing.

The fix: It'll take a confluence of events to grow the audience: First, a solution to the cost barrier. Carriers are working with marketers on initiatives offering consumers free, ad-supported services such as video, messaging and web browsing. Dave Whetstone, mobile advisor to Publicis & Hal Riney, San Francisco, predicted we'll see those this year.

All-you-can-eat data plans and the educational iPhone TV spots, which show how a phone can be used for more than talk, also should spur adoption of advanced services. On the publisher side, firms such as Quattro Wireless are helping move PC websites to the mobile web.

Challenge No. 2: Measurement

Marketers are accustomed to being able to measure and optimize across the PC-based web, but many technologies that make that possible, such as the ability to track customers via cookies, aren't available in mobile.

There's also a paucity of trusted auditors to ensure marketers are getting the ad exposure they buy. "The carriers have to start to find a way to deliver that data," said Larry Harris, president of Ansible. There's also a need to measure beyond the click, said Jason Spero, VP-marketing, AdMob.

He said people are asking: "`What happens after the click? How many registered? How many called?' It's not just unique users or clicks but intent to buy."

The fix: Industry trade groups are starting to grapple with measurement issues. The GSM Association, for example, is looking to expand to the U.S. an initiative it organized among European carriers to work together to deliver uniform, cross-operator metrics to media and ad companies so they can more easily plan, target and evaluate campaigns.

Other advances: The Nokia Media Network allows marketers to compare ad performance on a number of content sites; IAG Research has measurement tools capable of comparing mobile with other digital and traditional media forms; and Bango Analytics provides information about who is visiting mobile websites, where they come from and what they do on the sites.

Challenge No. 3: Complexity

Mobile remains a complicated channel because there are so many different operating systems, devices and carrier standards to worry about. A single campaign needs to meet myriad approvals, and marketers that want to buy mobile ads from multiple networks or vendors need to stitch those buys together by hand, like in the pre-DoubleClick days of the PC web. Those toiling in the field say marketers go into virtual shock when they realize what's involved.

The fix: Operators need to create ad standards, and mobile ad sellers need to be willing to come together around ad-serving technologies that work across networks. There are signs the industry is moving toward a more open, cooperative mind-set.

The carriers' "walled garden" versions of the mobile web are crumbling; No. 2 carrier Verizon is opening its network to outside application developers; and Google is launching a similar open platform in Android. Plus, a recent federal spectrum auction mandated at least some open access to third-party players.

Challenge No. 4: The misnomer of mobile as ad medium

Too often people treat mobile as just another medium into which marketers should shoehorn existing ad models. This is being questioned online and should also be questioned in mobile.

The fix: Marketers need to realize mobile is not a medium that works best alone; it's more effective as part of a larger media buy that integrates with TV, online or print. "Mobile marketing should make your other media work harder," said Eric Bader, partner at Brand in Hand. He said the first thing he asks marketers when he goes in to talk about mobile is how other media channels are performing and suggests tying in mobile to help boost performance. Some marketers, such as airlines, with their improved mobile sites, are making it part of customer relationship management.

Challenge No 5: There's been no hallelujah moment

Mobile marketing will really take off when "everyone sees something is working, and they call an agency and say, `Make one for me,"' said AdMob's Mr. Spero.

The fix: It'll simply take time-and creating a better environment should help. "We're on the cusp of getting a richer environment for mobile," said Eric Eller, senior VP-product and marketing, Millennial Media. "The user experience is going to get a lot better quickly," he said. One example: Adobe recently announced that its Flash Lite software, designed for mobile devices, soon will be on Microsoft's Internet Explorer Mobile browser.