Six Pixels of Separation - The Blog
July 29, 201010:06 PM

Product Is The New Marketing

Brands can't hide any more. If you're reading this Blog, you already knew that.

Last night Jeff Bezos (founder and CEO of Amazon) was on Charlie Rose to discuss the latest iteration of the e-book reader, Kindle (if you're interested in watching the online video of the conversation, you have to click around on the Charlie Rose website to find it). While reading Bob Lefsetz tonight, I came across this quote that Bezos said to Rose during the conversation:

"Before if you were making a product, the right business strategy was to put 70% of your attention, energy, and dollars into shouting about a product, and 30% into making a great product. So you could win with a mediocre product, if you were a good enough marketer. That is getting harder to do. The balance of power is shifting toward consumers and away from companies...the individual is empowered... The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it. If I build a great product or service, my customers will tell each other."

"The individual is empowered" is code for Social Media.

This isn't really about word of mouth marketing in as much as it is about the fact that customers don't just tell one another about brands they love (and hate)... they tell everybody. This was the big deal about Blogs (in the early days), but that conversation is now everywhere. It's on Twitter, YouTube, Facebook and in places like Yelp! and beyond. Some brands even allow consumers to rate and review their products on their own websites (the good stuff and the bad stuff). All of this is becoming table stakes in the world of Marketing and Communications (meaning, the customer's expect to be able to say and do whatever they want, wherever they want to). What's left - as Bezos clearly states - is great products and services. A mediocre product with great Marketing is only going to create a lot of attention and conversation around the fact that the product is mediocre. Now, Marketing comes full circle to support the story of the brand and the products, and not just to oversell something mediocre.

Bezos makes it sound like this is the end of Marketing? ... or is it just the beginning?

By Mitch Joel


July 29, 2010 4:56 PM

On Being A Curmudgeon

When has a curmudgeon ever really done well in Marketing?

Twitter, Facebook, YouTube, and especially Blogs have a very magical way of bringing those who are a curmudgeon right out into the open. The definition of a curmudgeon is someone who is "bad-tempered, difficult and a cantankerous person." It's not someone who has the occasional "this sucks!" post, and it's not someone who creates content in a passive-aggressive fashion. The amazing thing about those who are curmudgeons is that they rarely know that they behave in this manner, and they often spend the bulk-load of their offline time sulking about the online conversations that are bringing them down.

Be serious. But don't be too serious.

I love everything I do - both personally and professionally. I do my best to put forward both a positive and happy attitude. Is life perfect? No. Am I fully content with my lot in life? Hardly. But, I don't kid myself either. I fall into a very small minority of the population that actually loves what they do each and every day (and, like you, I have my off days as well). I also don't kid myself into thinking that what I do for a living is as important as a school teacher, doctor or someone trying to make a difference in the developing world. I help brands make better connections with their consumers through the many online channels. Nothing more. Nothing less. It pains me to see the online conversation when people are truly aggressive and angry about issues that are really inconsequential in the grand scheme of things.

Love what you do. Be passionate about what you do.

How often do you read, see and hear from a Marketing professional who is - without question - a total curmudgeon? Everything sucks. Nobody is saying anything new. Clients are stupid. Agencies don't get it. There isn't an original thought in the world. All new creative is simply a copy of something that has already been done before? So-and-so is a moron. If people don't see my point of view, they are clearly the ones without a  clue. And on and on and on. Do you ever wonder why Marketing attracts so many characters like this?

We're not moving the conversation forward.

If all we ever do is critique, bash and act in a curmudgeonly fashion, we're not only going to have a hard time pushing the conversation forward, we're going to be even more challenged to get the brands into these channels, platforms and new media. Nobody wants to join anything that has people mumbling and grumbling the whole way through.

Rise above.

If someone wants to be a curmudgeon... let them. This is one of those moments in time when we - as a community - give them consent to bother us by feeding their temper and attitudes. Things are good in Marketing and they are getting better. New media, new platforms, new channels, real human connections and individuals connecting up to brands because they care (even if they're saying something negative). Traditional mass media is finding its pace in the digital world and there seems to be room for everybody (while still having room for more disruption).

The real question is this: how do we remove the curmudgeons and get on with the business of doing great work?

By Mitch Joel


July 27, 2010 8:08 PM

The Goods On Virtual Goods

While scaling and monetizing e-commerce is still an issue for many of the top retailers in the world, those merchants should also keep an eye out on virtual goods.

News came down this week that the Executive Director of Shop.org, Scott Silverman (a close friend of the Six Pixels of Separation and Twist Image community), was leaving the organization to join a start-up focused on virtual goods (more news on that here: DM News - Shop.org executive Silverman resigns to found startup). While this news sent shockwaves through both the online merchants and retailers associated with Shop.org and the NRF (National Retail Federation), this is a very forward-thinking move for Silverman, who is joining an industry so new that we can hardly even say that it is even in its infancy.

Why aren't all retailers seriously focused on virtual goods?

Think about the current opportunity (and where this is all going). Why wouldn't a department store start selling digital versions of products like music, movies and books? On top of that, think of the opportunity for doing multi-channel marketing campaigns by offering up specials or exclusives on things like a tractor in FarmVille or better armor in World of Warcraft with either an online or in-store purchase. While Facebook no longer offers the buying, selling or sending of gifts (more on that here: All Facebook - Why Facebook Killed A $100 Million Baby), this was a multi-million dollar business for the company. At a more primal level, just think of the baseline affiliate marketing opportunities for retailers as an entry point.

And this is only the beginning.

Some of the major retailers (like JC Penny and Target) are already embracing celebrity-endorsed brands, so why not extend this to the online/virtual goods channel? Imagine exclusive wallpapers for your iPad and/or iPhone designed by Demi Lovato and sold through her new relationship with Target? Yesterday, it was announced that Madonna will be designing and selling a new line of accessories through Macy's (more on that here: Wall Street Journal - Macy's Hopes Madonna's Line Puts Retailer On Map With Teens), this is another great opportunity to tie-in exclusive virtual goods to up the overall basket.

We tend to think with extreme shortsightedness.

The truth is that nobody can forecast the future of retail (or if virtual goods have a legitimate business leg to stand on), but as distribution gets more complex and the cost of building, maintaining and staffing individual stores continues to rise, the retailers of the future are going to have to embrace the very real reality that consumers no longer draw a hard line between their virtual goods and their physical goods. Don't believe me? Look at the quick transition the mass public made from a physical CD of music to an iTunes library. On top of that, we also got news today that consumer's habits are changing at the retail level. Customer service needs are dropping (they're probably being met by empowered consumers using the digital channels for information and more) and they are becoming much more price sensitive and driven.

Digitization is as digitization does. 

While some industries are being forced into digitization (music, movies, books, software, etc...), retailers may offer the world a Digital Marketing leadership stance by embracing and encouraging the sale and distribution of more and more virtual goods. Initially, this will look much more like strategic partnerships (where a company like Warner Bros. would team up with a major retailer like Urban Outfitters to distribute their virtual goods), but it could (and should) lead to that retailer developing their own merchandising team against virtual goods, and building that new category within their business. Look no further than Apple to see a glimpse as to how this can play out (you buy your computer, iPod or whatever at the retail level, but then fill it up with content and software through their digital channel - iTunes).

What's your take on virtual goods? Will people actually buy it?

By Mitch Joel


July 26, 2010 4:36 PM

The Next Big Thing Online Could Well Be Anonymity

With more and more people adding more and more personal stuff about themselves online, it's fascinating to think that the next big thing in the online world could well be anonymity.

While it's easy to take a contrarian view of Social Media, Digital Marketing and the trends that are currently underway (and this includes everything from Facebook passing 500 million users to the growing popularity of location-aware platforms like Foursquare), it's important to remember that a lot of what made the online world popular during its commercial inception was the ability to be anonymous. That anonymity was quickly followed by the ability to be someone/something completely different from who you were in your offline world. The intersection of this personality conflict came shining through when Second Life (the virtual world) began to gain in popularity a few years back. You would have individuals switching genders (some were even switching species) and in all of the flamboyance of island owning and virtual partying, what we really had was a place where individuals could lead a "second life" or, as some described it, "the life I was meant to lead."

With all of this personal information that we're publishing online, people still have a need/want to speak anonymously.

While online social networks and Social Media swells in popularity, and those who disclose and act "more human" benefit from these real interactions with real human beings, there is (what seems to be) a growing groundswell towards places that embrace those who do not wish to disclose who they are and what they're up to. Whether it's individuals looking to block their IP from Hulu (a trick anyone who doesn't live in the United States has mastered) to the news today that Wikileaks put out a swath of leaked U.S. government documents about their actions in Afghanistan. Let's not even get started with the avatars you will encounter by playing the massively multiplayer online role-playing game (MMORPG), World of Warcraft.

There's something happening here and it's not just about deep throats or predators.

The knee-jerk reaction to anonymity is that the person creating the content has "something to hide." It's logical, but it's not the entire story. Some people simply feel more liberated to speak their mind knowing that who they are will not become a focal point within that discussion. Look at what is happening on Chatroulette and Formspring. While both offer the ability to fully disclose who you are (in reality), the main push of traffic comes from people wanting to connect in a more anonymous way. Yes, with this comes the two-percent-plus of people doing very bad things, but along with that also comes a different kind of culture and content production that you won't see on platforms like Twitter, Facebook and YouTube.

Everything is "with" not "instead of." 

Does this mean that having The King from Burger King show-up on Chatroulette is the future of Digital Marketing? Probably not, but it is a smart play and may well be the right strategy to let those futzing around on Chatroulette know that if they get tired of watching very ugly people doing very strange things to themselves, that they could take a break and grab a Whopper. The point is that Marketing is becoming less and less of a zero sum game (or one campaign to rule them all). Based on the wild and explosive growth of these platforms that allow and engender anonymity (and the huge uptake in a brand's desire to play with transmedia storytelling), it could also be an indication that your current/future Digital Marketing strategy may be well served by also embracing the anonymous side of the Internet. As an entry point, imagine what consumer reviews may look like if you didn't force people to declare who they are?

What are your thoughts about the growth of the anonymous Web? Should we be scared or ready to embrace this growing trend?

By Mitch Joel


July 25, 2010 1:54 PM

The Art Of Power Friending With Amber Mac

Episode #212 of Six Pixels of Separation - The Twist Image Podcast is now live and ready for you to listen to.

She is well known in the Digital Media circles from her work on G4 Tech TV to her constant (and consistent) appearances with Leo Laporte. There are few people more connected (both online and to the New Media channels) than Amber Mac. We have been friends for many years (and constantly joke about how often we wind up connecting in airport lounges across North America). She's not just a mass media personality either, her highly popular Podcasts,Web Nation and Command N are must-have pieces of content. More recently, she published her first book, Power Friending - Demystifying Social Media To Grow Your Business. I don't know what took us so long to get together to chat, but the moment finally happened and here it is. Enjoy the conversation...

You can grab the latest episode of Six Pixels of Separation here (or feel free to subscribe via iTunes): Six Pixels of Separation - The Twist Image Podcast #212.

By Mitch Joel


July 24, 2010 1:32 PM

Six Links Worthy Of Your Attention

Is there one link, story, picture or thought that you saw online this week that you think somebody you know must see? My friends: Alistair Croll (BitCurrent, Rednod, GigaOM, Human 2.0, the author of Complete Web Monitoring and Managing Bandwidth:... Read more

By Mitch Joel


July 23, 2010 1:55 PM

I'm A Creep

What is it about the human condition that makes us interested in the personal and public business of one another? People would like to have you believe that they have, indeed, evolved beyond the point of needing the public's attention.... Read more

By Mitch Joel


July 22, 2010 7:35 AM

Thank Social Media For The Next Phase In Human Evolution

What do you do with your down time? The average Canadian watches more than 25 hours of television every week (depending on which survey or research report you believe). On top of that, the average Canadian is also watching close... Read more

By Mitch Joel


July 21, 2010 9:23 PM

500 Million

Today was a big day. Not just for Facebook, but for Digital Marketing and Social Media. When 500 million people do anything, it becomes mass media newsworthy. Today, Facebook made it official: they have 500 million accounts. This makes Facebook... Read more

By Mitch Joel


July 20, 201010:55 PM

The Myth Of Location

Why hasn't Foursquare and other location-aware platforms taken off? Let's not dismiss the amazing growth that online platforms like Foursquare have had, but they certainly do not have the mass adoption trajectory or passionate users like Twitter, Facebook and YouTube.... Read more

By Mitch Joel