A Snap Lesson from Snap

A Snap Lesson from Snap

The pundits are already sounding the death knell for Snap after it’s poor performance last week. It doesn’t help that at every step Facebook has copied Snaps’ coolest features to Instagram or its own platform. Snap is, unfortunately, perfectly primed to fail. There are three primary reasons why.

  1. The Easy Stuff is Done: Snap, then SnapChat, entered the market with a value proposition to hit the youth market. They did that well. The app isn’t that easy to use but most of all, unlike Facebook the parents weren’t there. But the problem is, the easy stuff is done. MySpace died for lack of innovation. Facebook has everyones address book. People are lazy. They don’t like to re-establish all their connections and followers unless porting them is easy. And if their friends come over. This is why LinkedIn has cornered the professional social network segment, Reddit the forums sector and Twitter the microblogging segment. Any new disruptor is going to have to find a very strong value proposition.
  2. Lack of Unique Technology or IP: While Snap does have some cool tech, like its glasses, it doesn’t have anything patentable (although a patent has its dangers too) or unique enough to be acquired or be highly differentiated. Competitor platforms like Instagram and Facebook have significantly more market share. They can easily copy and port over the features of Snap and reach a broader audience, thus further reducing consumer desire to switch.
  3. A Fickle Demographic: Snap, like Twitter, is struggling to find revenue opportunities. Its primary demographic is under 25 and that’s a fickle market for brand loyalty at the best of times. Given that its prime segment is 11-18, well that’s even worse and they have little disposable income and are very anti-advertising. Even though some major, older demographic brands set up Snap accounts, they haven’t gained much traction and many brands and marketers have abandoned Snap as too difficult a platform and little to no return on campaigns.

Can Snap survive? Possibly. It isn’t dead yet. They could come out with some really cool feature that Facebook or someone else can’t copy. They might become a sort of underdog like Apple was for years and secure a small, but loyalty and potentially profitable market. This is though, highly unlikely. They are now prime for acquisition by Facebook, Google, Amazon or Apple (GAFA as they’re sometimes known.)

Any startup considering entering the social media space and trying to knock down Facebook, Twitter, LinkedIn etc., may want to second-think that. They were the easy things to do in the tech space and social media. Where opportunity lies is in building tools and services that integrate into these existing channels with a good monetization strategy. These won’t be easy, but they’ll likely be more financially lucrative.

What do you think?

Why We Need More Elon Musks

Why We Need More Elon Musks
In most of today’s world, you are more likely to die from sugar than you are gunpowder. The average lifespan is pushing into the 80’s around most of the world. Disease pandemics are smaller than ever before in history. War and conflicts are declining as the financial incentive to go to war fades away. Emerging technologies such as Artificial Intelligence, Blockchain, and robotics are fundamentally changing our society as the internet already has. We are transforming society in a bigger way than the industrial revolution or reformations ever have.
The Time for Audacious Ideas
As robotics and artificial intelligence transform the industrial, manufacturing and knowledge sectors and blockchain revolutionizes the financial world, huge transitions in the employment world will take place. A big concern for governments and economists is what to do with the surplus workers tossed out of jobs; how to re-train them, the supposed loss of disposable income, perhaps income period and all that extra time we’re supposed to have. And then there’s people living longer, the concept of retiring at 65 is fast fading.
The reality is that the feared huge displacement won’t happen instantly. It will happen over years and perhaps decades. With big, audacious ideas, the retraining may be minimal for welders, electricians, fabricators and so on. Artificial Intelligence will not replace lawyers or doctors, it will enhance them.
Why We Need More Elon Musk Types
I can’t wait for the big ideas and innovations that will come from the first woman entrepreneur; those will be fantastic. What Elon Musk has done is to transform the space race, kick-start a game change in transportation (through Tesla, Hyperloop and space.) It is these big ideas that result in massive new capital outlays and huge construction projects.
Sergei Brin, Google’s co-founder, is investing millions into an airship; these could be a part of a huge transformation in moving goods. It is precisely these big ideas that we need. Why? As supportive technologies like robotics and AI improve and become part of our world, as wars decrease and we live longer, we can now achieve these once crazy ideas. Such big ideas inspire and open new opportunities.
What Stands in the Way?
Well, as usual, us, human society. Those usual suspects; unimaginative shareholders focused on the “now”, political agendas, old-school economic thinking and of course, fear of change. But as history proves, such roadblocks are, at best, temporary in the bigger scheme of things. We are at a breathtaking time in the development of humanity…we need more inventors, entrepreneurs and people with really big, transformative ideas. They will create jobs and grow our economies in new ways.
What’s your audacious, crazy, awesome big idea?

The Real Reason Ad Agencies Are Struggling

The Real Reason Ad Agencies Are Struggling
All marketing is about information creation and management. And this is why agencies are fading away.
Agencies Used to Manage The Talent
Designers, copywriters, ad buyers, art directors, creative directors and so on…they were all under one “roof” for decades. It was the agency management that could corral and manage them and the projects. This business model made sense, at the time. Producing creative was time-consuming and resource intensive.
Along Came Digital
Agencies first started to see fragmentation in the late 90’s as the Internet became popular, as momentum grew and analog channels became less influential, agencies struggled to maintain their model.
Then computing changed. PC’s became more accessible to people. Very little skill was needed to participate by the consumer as software improved. Then came social media, followed by smartphones and tablets. Disintermediation was running rampant. Things got even messier for agencies.
As broadband reached critical mass, so WiFi hit the world. Laptops became ever more powerful and creative software better and cheaper. This impacted all industries. Publications like Fast Company were touting the “Free Agent Nation” and they were right, but that was the early 00’s and we weren’t quite there. Now, we are and this is what is destroying the agency model.
The Rise of The Gig Economy
Around 2012, we started to see the rise of what is being called the Gig Economy, in other words, freelancers, to a degree we hadn’t seen before. The creative/agency sector has witnessed this perhaps more than any other sector.
A Shifting in Marketing Management
Companies were quick to note this as well. While there are still the majority of major brands that use agencies, even that model has shifted. Every year, less and less use AOR arrangements and more hire boutique agencies and increasingly, individuals.
Companies know that when they hire agencies, they are paying for overhead and access to talent. An often frustrating aspect of this relationship for companies is that the senior talent they want is often quickly dropped and a junior slotted in place instead…the agency version of bait and switch.
This bait and switch issue and increased ease of finding strong talent that is freelancing, is the major reason agencies are suffering.
Smaller agencies are thriving because they have project management talent, can work swiftly and bring in senior talent as needed or work well with a freelancer the client company tells them to work with.
Within companies, they are shifting their marketing team roles to more project management and analytics based. This enables a company to more easily manage freelancers and multiple small agencies. They deploy tools like Slack or Trello and can leverage Office365 and GoogleDocs and now Dropbox’s Paper applications.
Most marketing and creative is about information creation and management. This largely negates the management architecture of large agencies.
Companies know how to find and leverage services like 99Designs, The Well, Buildateam.io and many others. Talent can be anywhere. Agencies can’t control that anymore.

Why Comparing Mac & Windows Laptops is Silly

Why Comparing Mac & Windows Laptops is Silly
When Apple finally, after four long years of digital drought introduced the new line up of MacBook Pro’s it didn’t take long for the criticism to to start flowing faster than the raging torrent of Niagara falls. Yes, they deployed a year old processor, the touch bar was, well, interesting. But then came what I dreaded would come; comparing Apple hardware to Window’s hardware. Certainly Sony, Dell, Toshiba and others have improved their laptops, some are very good.
It’s Not About The Hardware
It’s really about the software. The OS (Operating System.) Mac’s run macOS. Windows machines run Windows. Two entirely different approaches to software. Each OS does things in different ways. Apple hardware is far more deeply integrated with the hardware. Windows software is put on a variety of hardware; that causes problems. Except Microsoft’s Surface; an excellent tablet, built by Microsoft. The Apple OS comes from Unix.
It’s About Workflow and Ecosystems
If you’ve spent many years with MacBook’s and you know the OS well, you probably have a lot of apps and workflow processes you like. Chances are you also own an iPhone or other Apple product. You’re in the “ecosystem” of Apple. Same goes for Windows, though you’re more like to own an Android phone. Switching between either one means investing in learning a new OS; Windows 10 has a lot of good changes and it’s a great progression for Microsoft.
So if you’re switching from one OS to another, you’re going to be buying a lot of new apps and learning/developing new workflows. There’s going to be an adjustment.
Think Software not Hardware
At the end of the day, the decision you make has to consider the OS you’ll be using, all the new apps you’ll have to buy, how long it will take you to adjust and if that investment is good or will either of the OS’s lead you to switch again?
So it’s not the hardware really; its the OS, the apps, the ecosystem and time you’ll have to invest. This is why it’s a bit silly to compare hardware. Maybe the touch bar is a gimmick, but maybe so is a 3 screen laptop…but they’re choices for consumers. Whatever floats your boat.

Busting Millennial Myths Around Social Media and Technology

Busting Millennial Myths Around Social Media and Technology
Note: This post also appears on my LinkedIn blog and The Well.
As a digital anthropologist, I research, mostly for marketing departments and agencies, how people behave within social media and with technology as a whole. Millennials are a hot topic. Many a brand spends inordinate amounts of time and money to target the Millennial. They think they’ve got them profiled, sorted and thoroughly understood and that they’re some kind of magical money mine. They aren’t. They’re also not really a demographic and can’t truly be marketed too as one.
How Millennials Are Using Social Media
In the past year I’ve completed over 15 different analysis of Millennials behaviours and activities in social media in the U.S., Canada and UK for CPG and financial services companies. So what did we learn?
  • They aren’t a “lump demographic”, they’re within an age bracket, but there are no specifics, just generalizations.
  • Over 87% of Millennials prefer social media apps that are less public; they dislike the marketing messages in more open apps like Facebook.
  • 59% of Millennials in our research indicate they mistrust over 90% of the news they get in their social media feeds.
  • When it comes to personal information, contrary to general assumptions, over 62% don’t like to share personal details outside a closed group.
  • Those aged 18-24 are more likely to be skeptical of unknown people attempting to be friends in apps like Snap or WhatsApp. But see Facebook and Instagram as more “open” platforms while sharing less information publicly.
  • Over 76% of those aged 18-35 say a primary part of choosing a new app is that it has the ability to have private messaging.
  • Over 56% of those aged 18-35 dislike the term “Millennial” and find it a derogatory term.
This is based on an overall sample size of n=75,000 individuals conversing about how they use social media in their channels in the US, UK and Canada between January and November 2016.
Millennials and Technology
While the media images of “Millennials” have them almost always face-in-smartphone, the relationship those in their 20’s and early 30’s have with technology is quite different from what one might expect.
  • Home automation tools like Amazon Echo or Nest aren’t really that interesting to them; largely because they don’t own houses and are highly urbanized and very much into “buying local” and a more social approach to shopping that is physical. Those aged 18-35 rarely have a house and don’t have as much disposable income either.
  • They’re 60% more likely to buy small commodity items on a mobile than via a laptop/dekstop or some home automation device.
  • Only about 12% of Millennials have an interest in wearables and tracking their fitness.
  • Just over 43% of those aged 18-35 say they don’t look for apps outside those pre-installed on the device they buy (i.e. the Mail app on iPhone or Outlook on Windows.)
  • 48% say they are looking to reduce the amount of technology in their daily lives.
We have a lot more data and insights than what we’re delivering here. But we think these are some pretty big insights. Millennials don’t like being called that and really, marketing to a specific demographic is a bit like trying to do a  direct mail campaign to unicorns.
What marketing departments tend to miss is that those aged 18-35 don’t have a lot of disposable income and in fact, have less disposable income today than their parents did at the same age.
Across many global consumer brands, we see this odd desire to leap on the bandwagon to market to “Millennials”, which is fine if you have a lower price point product. But price elasticity in the 18-35 group is much tighter. There are also significant economic disparities between those aged 18-25 (who have minimal disposable income and are in an entirely different life phase) and those 25-35, even those 30+ are very different in life stage.
Stay tuned for some further insights into how those aged 18-35 choose products and view brand loyalties.

Microsoft Vs. G-Suite Experience

I’d like to write about comparing a custom domain Gmail compared to Microsoft and about the G-Suite and Google Docs and do a deep comparison. But I can’t. Simply because it’s such a nightmare to even set up a custom Gmail. I’ve tried. Over 3 months I tried. Signed up in various ways and configurations. The worst part is when you give up then check your personal Gmail and find a verification of email and constant pushes to “enjoy your 14 day free trial” – even after the 14 days has expired. I see.

So I went to my domain hosting company and checked that they have Microsoft hosted Exchange. Price was about $15/year higher. But within 5 minutes I was set up on iOS, macOS and fully functional. Done. In 5 minutes. I already have the Office365 subscription and I was able to bypass that and just sort my email.

Google? You have to sign-up for Google Apps just to give feedback. But you can’t even sign-up for Google Apps without a pre-existing corporate account. Even if you own your domain name. Uh huh.

So essentially, if you want an easier, faster, less complicated experience, the answer is Microsoft. Google search might be good, but since you can’t even access G-Suite, unfortunately I can’t do a comparison.

Are VR & AR Margin Technologies?

Are VR & AR Margin Technologies?

Virtual Reality launched into the stratosphere of hype in late 2015 through early 2016. Sony made much fanfare as did Facebook with its investments into the world of VR, although no one can seem to point out exactly why. Now VR is suffering some dizziness as people get ill after extended use. Augmented Reality sort of sparked and popped a few years ago…and sputtered along in the fringe of tech as a marketing wow tool. Google Glass didn’t do AR any favours either. Then along came Pokemon Go and AR had its biggest boost in years, except no one really talked about the AR that made it al possible. These two technologies have been percolating in the tech world for a few years now with occasional bursts of pundit-driven hype.

Why Does Augmented Reality Struggle?
It’s not an easy question to answer. The first push of AR technology into the real-world was Google Glass. Its adherents were promptly labelled “Glassholes” and shortly thereafter, Google Glass became marginalized. Other companies tried to jump on the AR bandwagon with glasses, all remain in that delicate life and death balance on the thin rim of bleeding edge technology. Based on my 25+ years on the front lines of technology, AR just isn’t seen by the consumer market as a “need” or really even a “want” as it doesn’t have a strong value proposition.

Is There a Market for AR?
Yes, very much so. In fact, there is some very real, very profitable opportunities for the use of AR. Most of these rest within the manufacturing, healthcare, law enforcement and similar industries. Police could use AR glasses to collect evidence and show information. Mechanics can use AR glasses to overlay instructions for machinery when working on repairs. AR is very useful, but probably not in the consumer market for sometime. It needs social acceptability which isn’t there yet.

Why Does Virtual Reality Struggle?
No one wants to walk down the high street with a massive object on their face. That’s obvious. For the most part, these devices are large, clunky and uncomfortable over long periods of time. Then there’s the whole spatial sickness thing (although that problem is being solved.) VR struggles because consumers perceive it to be only useful for video games. Because that’s who’s largely using it.

Is There a Market for VR?
Just like AR, there is some great market potential for VR. Training for police and military, surgery, emergency responders, nurses…VR can be an excellent training product. It may help in explorations as well. But broader consumer adoption that sees lower price points and massive volumes is, I think, a few years away yet.

Summary
Both AR and VR are excellent, nascent technologies. But they will remain niche applications for sometime. Consumers are only just beginning to realize the power and potential of SmartPhones and right now, that is the dominant tool to most consumers and professionals. Yes, VR can be adapted to use with SmartPhones, but it’s clunky at best. AR is inherently available through SmartPhones as well and that may be how they slowly gain acceptance.

What are your thoughts?