Deborah Schultz

Life isn't binary, neither is the Social Web

In the past few weeks as the economy has tanked, startups, VC's and pundits galore have taken a new look on what this means for the almighty ad dollar and the world of social media. None of this is new - it seems we live in a a cycle of pushing off these questions until we hit tough times. In a lot of ways it reads like a familiar scripted B-movie voice over.

"Can successful startups like Twitter and Facebook figure out a "real" business model? ; Will users put up with more and more ads inserted in the middle of their personal interactions? ; Will all this new data compromise individual privacy?: Will big advertisers flee back to old tried and true models in the face of economic uncertainty? Tune in next week to find out if advertisers will figure this out before struggling startups are forced to close their doors"

It sounds bleak, I know, but I actually have faith that we will weather this current storm and it will even be a forcing function for innovation in the industry. What is however troubling to me is that what is often lost in the above voice overs is the voice of the actual customer and what makes relevant sense.

So, when this Adage article with the provocative title "P&G Digital Guru Not Sure Marketers Belong on Facebook" hit the feeds, I got inundated with emails from a lot of folks asking me "what the heck does this article mean"? Given my current work with P&G [I am their advisor on all things social & emerging media], I am not surprised at being asked this question. What was more interesting was that there were two very different types of emails that took two very divergent views 1) business oriented-"what does this mean for advertising on the internet?" and 2) individualistic and purist-looking at the issue from the lens that says "big companies don't belong on my social network". Well, what it means to me is that we are at a pivotal change in how companies and customer's connect and we are still learning the new rules of the road. These issues are not black and white, all or nothing. I think Battelle summed it up rationally when he states that the social networks/social media and marketing can go together - the question is when and how.

A metaphor that we have used inside P&G is that "if you are invited to a dinner party and you show up and start selling Tupperware, there is a good chance you will not be invited back". In other words, you need to demonstrate value before you jump in and start yelling "buy me". Understanding how and when someone is interested in hearing from you inside a social network is radically different than when shouting across the airwaves with a 30 second spot. Ted demonstrates why I enjoy working with him and P&G - the consumer is always first. The mechanisms on the social web are different and we all still have a lot to learn. Smart companies  - be they big or small -  know that looking at the current version of the web with an old media lens ain't gonna fly. That is why I believe so strongly in the core principles I am working on both with P&G and the Doc Searls and the gang on Project VRM [Sean, Chris, Adriana and more] . Understanding that the user/consumer is in control is a foundation on which any business, ad or marketplace models will operate in the future.

This is the participatory web and the old media models are being shredded. The social web is my web - it's PERSONAL to me. I am not creating media when I am online so much as I am connecting with people using media as my medium. As today's "consumers", we lean forward, we skip ads, we have a strong point of view on products and services and we expect to be heard or left alone on our own terms. The social web can actually provide much deeper and more interesting connections for customers and companies than simply being a marketing channel - it ties into the entire product lifecycle. And that is where stuff gets really interesting...and much more complex. This is where relevance and context and trust and intention all come into play.

In a world where relationship and connection are at once more subtle and scalable than ever before the answer to the question of whether companies & social media can mix is not simply a Yes or No answer. Shame on Adage for oversimplifying this complex ecosystem in the hunt for business relevance. Both Facebook and P&G are working to figure what works for their users and their consumers. In the end it is respecting the individual and the consumer that is most important and I would hope we would take our time to innovate & figure out what works for the long haul and not jump to oversimplified "banner ad, yes or no" solutions.

The social web - just like life - is just not that binary.

Think Like a VC - hmmm

This recent article in Ad Age in which Mark Kvamme [formerly of CKS fame back in the day, currently with Sequoia] encourages marketers to think more like VC's  -- points to the closing gap between marketers and tech.  He encourages marketers to be more like VC's and go back to the model of the 50s creating content.

Ad Age: You talk about advertisers needing to think beyond the current buying mindset of reach and frequency and connect with people through engaging experiences. This new breed of funded companies offers those experiences. Do marketers need to adopt a new online "ad model" in order for these companies to make money?

Mr. Kvamme: I think they do. They have to look at it as reaching the attention-deficit generation. ... The thing I don't quite understand about agencies and brands is why they don't go back to the 1950s and create their own content. At the early age of this new technology called television, they created "General Hospital," they created the soap-opera phenomenon, game shows. Why aren't they doing that on the net?

Part of [the reason] is the marketing guy is risk-averse. They're not venture capitalists. ... To me, they are the fuel that makes this stuff happen and they should be participating at a bigger level.

I agree on his points of create content - and there needs to be more risk taking my marketers and agencies so that their value is greater than just creative.  They need to also create meaning and value!

I have A LOT of thoughts on the huge gap that exists culturally between tech and marketers  that is at long last being forced to the forefront!

Risk is also relative - VC's are some of the most risk averse people I know!

What do you guys think?

The power of one on steroids - Project VRM

So - you signed on to the Cluetrain Manifesto, you jumped into the world of blogging, video, podcasting and all this social media, customer co-creation stuff.  You believe strongly in "engagement" and community, and 'cgm'  and really want to build relationships with your customers - Great!  There is exciting stuff being created, produced and mashed up all over the place these days and interesting new ways to actually forge those relationships.

And just when you were finally getting used to the customer 'talking' back--it is time to start envisioning a world where we/they - "walk".  That's right - where they not only talk back but actually have control over their relationship with you.

Get ready for the next wave of "customer empowerment" - aka  Project VRM - aka Vendor Relationship Management.  This is an initiative started by Doc Searls (aka one of the guys who brought you cluetrain and "markets are conversations") and it is gathering momentum quickly.

So what is this VRM thing?

Quite simply it is about figuring out how to empower me (the individual customer) to manage, engage and relate to vendors (vs CRM which is about Vendors managing me). 

Chris does a great job outlining the basics here and here. 

Tomorrow is the gang's first meeting, you can find details on the wiki. I am psyched to roll up my sleeves and - in Doc's words immortal words -  "bust some silos".

Note: Doc Searls - another catalyst extraordinaire! who gets the new "thecatalysts" tag.

Technorati Tags: ideas, project vrm, thecatalysts, vrm

Observation: East Meets West

Way back in December (seems like a long time ago). I had the pleasure of participating in the Guidewire Group's, Fall Leadership Forum along with 80 or so execs, author's and entrepreneurs from across the country. Chris and the gang gathered a really great group and it was an energizing event.  It also gave all of us a chance to take a breather and swap ideas, drinks and stories. 

An interesting take-away for me what was that this was a leadership event, and what struck me as one of the only "marketing types" in the room was how much of the conversation on leadership and success centered around the customer.  Many discussions revolved around smart ways to communicate with and engage the customer as well as discussion on the impact of the overall customer experience on the success of the company.  You would have thought you were at an east coast CMO summit.  Not that i am complaining - I say Hallelujah!

So, what's new? Why are all these smart, mostly Silicon Valley technology based start-ups and CEO's suddenly waking up to the importance of the customer experience and marketing? 

My conclusion - up until recently the "West Coast" techies lived under the belief that their technology, solution, widget etc was better than the other guys.  This was the mantra - my technology is better than yours.  Today, as new innovation is layered on top of existing technologies, technology itself is a commodity and everyone is a media company, Tech/Internet/Software companies have woken up to the harsh realization that--gulp--the User is critical to my business and I better start paying attention - or they will walk. Differentiating yourself in this world requires a holistic approach to your customer. - features, branding, communication.

The flip side of this equation is that over on the East Coast, companies steeped in marketing, command and control messaging and brand advertising - now realize that they better be well versed in the technologies empowering their customers to speak up loud and clear and define the brand for them - they better "engage" and co-create - or their smart fast moving, fickle customer's will walk.

OK - you may argue that I am oversimplifying the whole East/West thing because my lens is skewed as I live on the bridge between these two world's, but there is an interesting inversion taking place.

Internet companies cannot rely on better technology alone - it is too easy for a slicker, better model to show up a nano-second after they launch.

AND

Media/Marketing/CPG companies cannot rely on old slick "talk at you" campaigns that tell you to buy the newest, shiniest X it will make your life better simply because we said so.

Both "coasts" are operating in a bit of a discomfort zone - I like this.  Innovation happens at these intersections - if you are willing to take a risk or two.

Conversational advertising..hmm

This could be interesting....Edelman and Newsgator launching branded, conversational ads.  Read more from Om here. I'll weigh in  once I see it in action. Anything that is more than a static banner ad is already a step in the right direction. But it is never only about the technology - the creative, the product, finding the appropriate catalysts for the appropriate campaign will all be equally important.
I am happy to see Steve, RIck and th gang at Edelman and Newsgator pushing marketers and advertisers in new directions.  They may be surprised to see what comes out of this.  Keep it up!

Addendum - read this post form Hugh -I don't care what the technology is - as he wisely states "there is no DEMAND for messages"