Recentralizing Digital Marketing

The design of a global organization would appear to be a dreary exercise in org charts and bureaucracy. The rise of the multi-national conglomerate in the 1970s in a pre-fax era, made decentralization a necessity. But does decentralization lead to chaos, redundancy, and loss of control?  Bear with me, as I believe it does for the simple reason that the very nature of digital marketing is its capability to be managed, executed, measured and optimized from a single point, a function that revels in the fact that technology destroys distance and time zones. What remains is localization and translation and little else.

In the lobby of International Data Group, Pat McGovern’s global IT publishing operation, Pat’s ten guiding principles included a bullet point about putting control out in the countries, a necessity when he realized his own travels and capacity made him a bottleneck to getting things done in a company, that among other things, was one of the first to establish an operation in China prior to the Deng Xiaoping economic reforms. McGovern drastically decentralized a company focused on information technology, putting P&L and operational control in the hands of his country managers. The results spoke for themselves in the 1980s when IDG was a publishing giant. But by the time I arrived in 2005 it was evident to me that the strategy exposed some flaws, flaws that the current CEO Bob Carrigan took steps to merge through a “federation” project to combine the company’s massive customer databases into a single monolith.
Carrigan’s insight was that IDG’s customers — the marketers seeking to leverage its insights into corporate information technology buyers — really didn’t care if the country manager of ComputerWorld Russia was sharing his circulation database with the country manager in India. Hence IDG Connect was created, a merger of those databases into a coherent single powerhouse.
Database and lead generation consolidation is only one part of the process of bringing the disconnected back to the center. As publishers made the transition from print to digital, their production systems moved from mechanical presses located closest to the reader, to content management systems, feed managers, and metrics capabilities that could, thanks to the world-is-flat phenomenon of TCP/IP standardization to a single set of standards. Publications running WebTrends vs. SiteCatalyst vs Interwoven vs. Vignette under one corporate umbrella is a recipe for utter chaos. Indeed, as any management consultant will tell you, the most difficult part of post-merger integration in finance, media, what have you is the bridging of incompatible technologies into one cost effective solution.

The centralization of technical systems to provide a unified customer experience is a given, but after more than four years inside of a Fortune Global 100 brand, I have come to conclude that the customer/client has the same ugly issues to confront is a post-decentralized world.

A few anecdotes on client side centralization, random, but in my mind linked:
  • Singing from the same page: Lou Gerstner, the former chairman of IBM, tells the story in Elephants can Dance about bringing in Chief Marketing Officer Abby Kohnstamm. She gathered the giant’s marketing executives in Armonk in a conference room ringed with examples of the chaos the company was inflicting on the world with out of sync advertising campaigns. She knocked heads together, revoked the right for anyone with a bright or “better idea” to execute it, and got the company singing on the same page with Ogilvy & Mather’s brilliant eBusiness campaign.
  • Where is it written?: Marketers may have certain “unalienable” rights, but as one very smart marketer at Coca-Cola told me at a Google Marketing Advisory board meeting, where in hell is it written that a country manager in Uzbekistan has the right to her own 30 second spot? Consistency is everything, this is not to say that localization is needed and warranted, but permitting the edges of a brand to dictate what their web presence looks like on any given day, other than to reflect some sensitivity to local culture and mores is insane in my mind.
  • Web: to quote Tolkien: “ One Ring to rule them all, One Ring to find them, One Ring to bring them all and in the darkness bind them.” That ring, being of course, the most Precious of all brand assets, the corporate web site. Here is where the brand begins and launches the customer — existing or prospective — into the brand experience. Operating a global brand web infrastructure makes centralization mandatory. From content management to translation and verification, the notion that a brand would not present the same digital face globally is insane, yet …. I think (fodder for another post) that large corporate brand sites are hopelessly screwed for the most part. Done in by internal politics until they are link fests satisfying internal owners, but doing little in terms of supporting a unified customer experience.
  • Microsites: where brands go to die. This is the classic manifestation of marketing going off the rails and into the weeds of inconsistency. First off,the behavior to acknowledge is every one is a web designer and everyone is a creative director. Everyone wants to take lunch with the rep from Google and feel part of the cool-kid club. The local agency proposes a “Twist” on the new campaign and next thing you know you’re sending traffic to a microsite with no tagging, no metrics, nothing but the latest Flash bling and a check mark in the campaign cookbook. Sure, it’s a bitch to get the temple priests running the corporate Web Vatican to build custom pages. Templates and corporate style guides are the anti-Viagra of innovation, but do you really want to find out that the brand is being lit up on some disconnected set of pages dictated by the aesthetics of a junior marketing manager in Moscow.
  • Outposts: Facebook to Twitter, Orkut to Flickr — brands are falling over themselves to establish a presence on the highest populated social networks and sharing services. First: you can’t be everywhere, second, this is where the real chaos is occurring. Some bright young marketing professional in a far flung country is just dying to practice his social networking chops, so up goes a Facebook fan page, a country Twitter account — and the brand has yet another outpost to manage and keep consistent with the messaging emanating from headquarters.

That last point, the chaos caused by third-party services and over-eager local teams is where brands are feuding internally. Unless there are consequences and an iron-fisted CMO like IBM’s Kohnstamm, global brands will continue to kill themselves from within trying to defer to the edges in the belief that there is where the creativity lies. Sorry, in digital your brand crosses country sites. That killer product you only sell through one channel? Well good luck concealing it from a Chinese consumer who wants to know why they can’t get it at their local dealer. The very fact that everything is a click away from everything else makes the artificial silos and pigeon holes of marketing management an utter and complete fiction.


Next up: a modest proposal on how to, in the words of McKinsey’s Dick Foster, “Loosen control without losing control” in a global digital marketing world.

Doc Searls Weblog · Brands are boring

The Social Brand bug crawled up Doc Searls’ (Cluetrain co-author for you Philistines) butt and inspired him to say the right thing about brand being for cattle and breweries. I now have a new acronym to go on the wall along with  NMDB: SEFTTI.

“As for social media, all media now need to be social. Mediation is between humans, some of which are inside companies. Hence, “social media” as oxymoron. Sort of, anyway.

“Meanwhile, lots of social media types are talking about brands and branding as if these were new and hip things. They’re not. They’re heavy and old. We need to move on, folks. Think of something human instead.

“When a friend came back from SXSW recently, we talked about how, at the show, it was “social every fucking thing there is.” The term SEFTTI was thus coined.”

via Doc Searls Weblog · Brands are boring.

I miss being a reporter some days

Social Commerce: why we should care

And now for something completely different, a post on interactive marketing!

Hat tip to Avinash Kaushik for tweeting this:

What makes a device “social?”: Lenovo Skylight

Coming out of the 2008 Summer Olympics I joined a small team within Lenovo consisting of the company’s best engineers and designers to re-invent the netbook category — those small (sub 11″ screen) PCs that have taken the market by storm since their introduction two years ago.

The netbook category has flourished for a couple reasons best explored by a serious PC analyst — my opinion is that sub $400 PCs in a super-portable form factor were the perfect option for consumers slammed by economic concerns in this Great Recession and who are gradually migrating to a “disposable” device model brought on by a constant upgrade cycle in their phone and other consumer electronics.  Alas, the netbook is still the same operating system, the same computing model, just in a smaller, cheaper package.

Consider the smartphone.  Small. Thin. Long battery life. No patches or updates or viruses. No waiting to boot. It’s always connected (almost always). Highly designed. It just works. But it is too small to watch a movie on and is a major pain to compose anything on — aside from simple SMS or email “grunts.”

What happens if you combine the two models — the connected simplicity of a smartphone with the physical ergonomics of a netbook? Well, you get a “smartbook.”

Today Lenovo announced the first smartbook — called Skylight —  in partnership with Qualcomm, the San Diego-based leader in phone chipsets. Using Qualcomm’s Snapdragon platform, the Lenovo Skylight is designed with cloud computing and social networking in mind.  It is not a phone per se, but it leverages a 3G or Wifi network connection to present the user with a high definition browser experience that assumes most, if not all of the user’s content and activities are up there, in the cloud.

There is no harddrive, just a lot of flash memory.  Productivity applications? Google Docs. Music? Amazon.  This is a device designed for messaging and media.

So what makes it social? The user interface is a proprietary design built around an “app” paradigm. Those apps contain the user’s primary accounts — email, instant messaging, SMS, Facebook, etc. — and are extensible and customizable.  The device is meant to be constantly on and connected, permitting the user to interact with it on an ad hoc basis, not a formal session where the user needs to power on, connect, then log in.

The design of the system is amazing, delivered by Richard Sapper, the genius behind the original ThinkPad.   The user interface is internally developed on top of a Linux kernel and is pretty intuitive and very browser centric. The software implementation was remarkable, particularly given the challenges of porting a large screen user experience to an ARM platform. The engineering teams lead by Mike Vanover, Jim Hunt, and others pulled off a significant development miracle in building the operating environment.

The name — Skylight — is indicative of the device’s mission as a hardware portal into the cloud. With persistent and constant 3G and wifi, the device should have no issues living up to its name.

I presented a prototype to some resellers in London last summer and over the course of a few days was able to play with the machine on a wifi only basis. Given the early, pre-pre-beta condition of the build, it was surprisingly stable and provided a great glimpse into what a cloud device would behave like.  My earlier thoughts on stripped down operating systems and cloud centric computing models all emanated from my week with the Skylight prototype. It also was a device that seemed to sell itself. Thin is definitely in and the Skylight is astonishingly thin for a clamshell form factor. Watching the development process and the way the project leader Peter Gaucher was able to keep the device as thin as its initial prototype was remarkable: essentially thinness comes at a price, but Gaucher was able to defend the machine against the forces of thickness and economics.

As soon as we have seed units I hope to get some Skylights into the hands of the Lenovo Blogger Advisory Council for their insights into how they use the device and ways to improve it as it evolves. This represents a very interesting exercise in innovation, one I was honored to have witnessed. It represents and embodies a lot of what makes Lenovo such an interesting place to be: a place where risks are taken and old paradigms are challenged. Is this the be-all, end-all social device? No, but it is a start that marks a radical departure from old familiar models to a new one altogether.

I discussed this category at length with my former Forbes.com buddy Om Malik last week in San Francisco. He had tablet fever to some extent, and was more focused on operating systems issues such as the convergence of Android and Chrome or the presence of Jolicloud. The issue, as I see it, is one that Lenovo SVP Peter Hortensius has called the “wasteland” — the “tweener” space between a smartphone and a netbook — the space where we all are seeking some device about the size of an airplane ticket. The place where the Apple Newton once lived. And the Sony Vaio P series, and even our own prototype Pocket Yoga. We need a big screen to stream our movies and our YouTubes, yet we want to hold it to our ears so we can talk. We need a device that is persistent, that doesn’t need an outlet to survive more than couple hours of constant use, something that we can show off (consumer electronics are fashion statements).

Does Skylight achieve that? We shall see. I know I am ready to move to the category and expect it will, overtime, morph as carrier 3G/4G wireless models change, the cloud becomes more mainstream, and the  category achives ubiquity.

Reviews

Notebookreview.com

Engadget

Gizmodo

Affiliate Marketing Undervalues The Link

Fred Wilson has an interesting post about the undervalue of affiliate referral links in this age of declining banner ad conversions. Such links, emanating from a trusted source such as his VC blog, are priceless to an ecommerce fulfillment site like Amazon or Lenovo. As an Amazon affiliate for years through Reel-Time, I agree that the programs grossly undervalue the the link and need reform.

“comScore once did a panel-based survey of people who saw a banner ad. Very few of them actually clicked on the banner ad and transacted. But many who saw the banner ad eventually searched on the item they initially saw in the banner and transacted later. comScore has also observed that many products that are initially found and/or researched online end up being purchased offline. I wish I could find both pieces of comScore research. If I can find them, I'll come back and link to both (got one of them now).

“The point is that my blog post drove a lot of value to Amazon that is not totally captured by the 40 purchases of Gretchen's book or even the 118 transactions that were done by those visitors in the past two days. The value of that link, in my opinion, is significantly greater than $25.20 and as a result bloggers and other users of affiliate services are getting under compensated for the value they are providing.”

via Affiliate Marketing Undervalues The Link.

Google is marketing more….

…especially around Chrome. First the free holiday airport wifi, now some interesting web video out of Asia. Thanks to colleague Cissy Yang for the pointer. This one is hosted on YouKu. I like it a lot (but then again I also like Chrome a lot)

http://v.youku.com/v_show/id_XMTM5MDgyMDY0.html

Google, the company that didn’t need to market is now doing so.

Google Free-Wifi

Who says Google doesn’t market? Free WiFi for the holidays in select airports — this is a major relief from the $10 T-Mobile Logan wifi extortion. log in, get an offer to download Chrome. Brilliant. I  hate paying for wireless and this exposes Chrome to a ton of mobile customers.

Music distribution, YouTube, and DoubleTwist

A band I have been keeping my eyes on for a few weeks — Them Crooked Vultures — is a week away from releasing their debut album. It’s one of those celebrity rocker projects — John Paul Jones from Led Zeppelin, Dave Grohl from Nirvana/Foo Fighters, and Josh Homme from Queens of the Stone Age/Kyuss. In keeping with the trend set by Nine Inch Nails, Radiohead, and others, the band has done an interesting job in building demand for the music through a web site, email newsletter, and the release of a sample song …. through YouTube.

This morning the band notified me via email that the entire album was on YouTube. The website is a great example of leveraging social sharing tools to spread the word — a real time Twitter feed — Facebook integration. So very smart interactive marketing happening behind the scenes.

So I went to YouTube — which is not surprising given that I heard the experts at YouTube/Google once confirm that the most viewed type of content on the service is …. music — and indeed, there were all 13 tracks from the furthcoming release.

Now it gets interesting. I’ve been playing with DoubleTwist all summer — a content “synchronizer/player” developed by DVD Jon. This is a very very very intriguing piece of software that has freed me from the locked tyranny of iTunes so I can manage my digital assets across multiple devices — in other words, I can put iTunes music on my BlackBerry Bold thanks to DoubleTwist. The program has a cool function that also allows one to paste in the url of a YouTube video and import into a local playlist.  Five minutes and I had the entire Them Crooked Vultures album on my iPod a week early (I will buy it, the quality of the MP3s is obviously low and sub-par).

So what? Well, the so-what is that the artists are sharing stuff for free on free platforms and I can collect and manage that free stuff using free tools. If I were a credit-card challenged 25-year old who was compelled to build a music library I think I would need look no further than YouTube and DoubleTwist. I look forward to the insights of noted Music Economist Uncle Fester on this “freemium” tactic.

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