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Archive for the ‘strategy’ Category

This isn’t brand new data, but I came across it last week and thought it would be cool to share here. No need for me to write a 30,000 word blog post or white paper on what it all means. I will give you the main bullets but the graphics kind of speak for themselves. You should be able to connect the dots all on your own.

Above: Global Media Consumption per week 1900-2020. What do you see?

1. The main line: Global media consumption doubles every 25 years or so. Bear in mind that there are only 24 hours in a day, so that curve eventually levels off (even with second and third screens… but we won’t get into that today).

2. The nature of media is changing: 5 years ago, 50% of media was digital. In 8 years, that ratio will be 80%. Think about that and what it means.

3. Individual performance of specific media:

Print is steadily shrinking and has been since the 1940s, contrary to popular lore about the internet killing print. This is not a new phenomenon. It’s accelerating, sure, but it isn’t new. TV started that trend long before most of us were born.

Analogue TV and radio formats have been replaced by digital formats. Radio has been relatively flat for a very long time. TV saw enormous growth from 1940 to 1980 but has been relatively flat ever since. Note that this graph doesn’t look at the growth of channels (channel proliferation and fragmentation, but consumption only. Adding 100 new TV and radio channels per day wouldn’t affect consumption).

Outdoor has been relatively flat for over a decade, as has been cinema.

So what’s growing? You already know: Internet, mobile (wireless) and games.

Speaking of mobile:

What this graph tells us:

Mobile cellular subscriptions are steadily increasing worldwide each year, as is the number of internet users. Active mobile broadband subscriptions are also growing quickly. That’s the black bar on the graph. It isn’t even there in 2006 but by 2010, it already reaches about 1 billion.

What’s flat (or close to flat?) Fixed broadband subscriptions and fixed telephone lines.

What does this graph show us?

1. Look at the relationship between internet users (green) vs. Fixed broadband subscriptions. What do you see? There are far more internet users than broadband subscriptions. Part of the reason for that is that one broadband subscription may serve an entire household or office, but there is more to it than that: Mobile broadband. More and more people now access the web through mobile devices. It isn’t to say that PCs are dead, but this indicates a pretty key shift in how people (it’s okay to call ourselves consumers) now access content and information.

2. Look at the relationship between fixed and mobile broadband (pink and black, respectively). In 2006, fixed broadband was it. By 2008, they were essentially tied. By 2011, mobile broadband was double the size of fixed broadband.

Bear in mind: Mobile broadband subscription = 1 user. Fixed broadband = several users. It’s simple math. Regardless of the apples to oranges comparison, growth is growth. Shift is shift. 75% of media will be digital in just 4 years. 80% of it will be digital in 8 years. Mobile devices are becoming the interfaces of choice for digital content. If you aren’t building your business processes and designing your content with this in mind, don’t blame “the economy” for what is about to happen to your market share.

Now let’s look at a quick graph on the relationship between age and internet use in developing economies vs. developed economies:

 Now look at this:

See the change in just 5 years?

Here’s another one that should make you think a bit, especially if your company has a global footprint:

Three things:

1. Globally, 45% of internet users (regardless of the interface) are under the age of 25. Though it may be obvious to most of you, don’t take for granted that every CEO and CMO has figured this out yet: It doesn’t matter if your typical customer is mostly over the age of 35. In 10 years, those 25-year-olds will be potential customers and they will expect you to do business the way they want you to do business. Better start working on them now. And while you’re at it, better start working on bringing every aspect of your business and its marketing/communications up to speed. You wouldn’t believe how many senior executives completely miss this.

2. Developing economies have some catching up to do when it comes to internet use, but they are quickly closing the gap.

3. Look at the growth of 3G penetration between 2009 and 2014: From 39% to 92% in Western Europe. From 9% to 40% in Eastern Europe. From 38% to 74% in North America. Japan hits 100% two years from now. 100%. (Japan is the model, by the way.) Even developing regions like Africa, the middle East and AsiaPac (minus Japan) are quadrupling 3G mobile penetration in the next two years. We are moving towards 80% of all media being digital. Mobile devices are increasingly becoming the digital interface of choice for consumers. Connect the dots.

Here’s a thought if you still don’t understand how this applies to your business: Follow the money. If it isn’t clear why any of this matters or even where things are going, look no further than shifts in advertising budgets in relation to digital and other media:

What do you see? Ad spend is flat in print (actually shrinking a bit) while digital ad spend is steadily growing. Every graph that compares online ad spend to other types of media ad spend look basically like this. If you don’t understand why this is happening, the graphs further up the page will help connect the dots.

Here’s another graph that ought to make you think about how your media planning strategy should already be shifting:

 What this graph shows is the point where online video wins the attention war and TV begins to recede. Same content but different interface, different medium, different level of user control. 2019 will be here before you know it. What are you doing today to prepare for the television set’s Waterloo? From media buying to content production and distribution, are you sitting on your hands talking to analysts about future trends or are you staffing up with people who understand this and know how to prepare you for it?

Let’s continue with today’s #graphfest. This ought to shed some light on what is happening on the interface front:

The 411: Desktop PCs are flat and mobile PCs (laptops) are growing. No surprise there. Also no surprise as to the growth of smart phones and tablets. But check this out:

Smart phones sales overtook desktop PC sales in 2008 and will take over mobile PC (laptop) sales in 2013. That’s next year.

Tablet sales will overtake desktop PC sales (that boxy thing taking up space in your employees’ cubicles) next year.

If you are an executive, go for a walk around your offices and ask yourself: What decade are you operating in? In fact… What century are you operating in? Look at your business processes, internal collaboration, media planning and productivity. Go spend a day at a media conference or tour your local coffee shops. Ask yourself if your business is operating in a bubble or if it is as technologically and strategically competitive as it could be. Be honest with yourself. Tip: If the average twenty-something hipster lounging around at Starbucks is better equipped than your average middle manager or business development team, the answer is no. Here’s another one: If your business isn’t creating apps or content specifically designed for these new devices (let alone social channels), the answer is also categorically no.

Every time I run into an executive working on a presentation on a plane, I look at what kind of tech they use. Nothing against Lenovo and IBM (great companies) but whenever I see one of those boxy black thinkpad laptops with the little red button in the middle of the keyboard, I cringe for that poor sap whose boss forces to work on outdated tools. It’s 2012. Shape up. You don’t see 20-year old tech winning on the racetrack, the field, the court or the links, right? Business is no different from sports in that regard: 20-year-old tech doesn’t give anyone an advantage. All it does is make you less competitive. Stop doing that to yourself. Move on. Look forward, see what’s coming and get unstuck.

Here’s a thought: When the world is changing faster than you are adapting to that change, it’s time to start a) worrying, and b) doing something about it. The idea isn’t even to eventually catch up, mind you. That’s a defensive position, a survival position. The idea is to actually get ahead of that change. That’s where the real competitive advantage is. Survival is a nice default position, sure; many businesses aren’t even there. But with only maybe 5% more thought and work than it would take to just play catch-up, you can shift from being just an “also in” company to becoming the leader in your industry or category inside of 5 years. That sort of surge in competitiveness doesn’t happen by accident. It takes will, foresight and initiative. That takes leadership. Real leadership. And sorry to have to tell you this, but real leaders make it a point to know their shit. “I don’t understand this new digital stuff” isn’t leadership. It’s an urgent call to action.

One last little media-related graphic to close today’s post and help you get your bearings:

Hopefully, this post will help you (or your boss) connect the dots between today and tomorrow a little bit. Something to think about: Becoming more “social” is only part of the shift that is taking place in media. It’s important, vital even, but without understanding how media as a whole is evolving, being “more social” probably won’t do most companies a whole lot of good. We’re seeing that already. There is a much bigger field, and the more of that field you and your senior leadership see, the better equipped you will be to not only survive the next decade but come out of it stronger and more competitive than ever. That’s the goal, right?

Plan beyond next quarter and/or year.

Get IT more involved in the day to day discussions that affect your business.

Revamp your HR’s hiring parameters.

You aren’t necessarily going to become a digital business, but your business does need to be as effective in the digital space as it is everywhere else. Welcome to the great reshuffling of the Fortune 5000 world.

Cheers,

Olivier

PS: I will be speaking about this in Brussels at the end of the month for Marketing Day Belgium. If you happen to be around and want to discuss this in greater detail during the Q&A or after the session, let me know. I look forward to it.

*          *          *

If the Brandbuilder blog isn’t enough, Social Media ROI provides a simple, carry-everywhere real-world framework with which businesses of all sizes can develop, build and manage social media programs in partnership with digital agencies or all on their own. Do yourself a favor and check it out at www.smroi.net. Now available at fine bookstores everywhere. Also available in German, Japanese and Korean.

Click here to read a free chapter.

CEO-Read  –  Amazon.com  –  www.smroi.net  –  Barnes & Noble  –  Que

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Several months ago, someone whose professional opinion I care about told me that after having pointedly gone after several outstandingly poor displays of misguided ‘practices’ on my blog, some “in the industry” (meaning the Social Media world) were wondering if I might not be a bit of a loose cannon. The comment took me by surprise – I’ve been called a lot of things in my life, but fitting squarely in the  cool-headed, calculated corner rather than the impulsive corner,  “loose cannon” had never been one of them.

After trying to explain for the better part of a half hour that a) I wasn’t a loose cannon and b) that the handful of skirmishes I had begun and swiftly ended were both calculated and necessary, I finally moved on to topics of greater interest. But the notion that anyone – especially people I respect professionally – would misread me this way has been on my mind ever since. Had I in the last eighteen months been giving the wrong impression? If a handful of folks who mostly know me from my blog and Twitter were wondering about my being on the wrong side of being impulsive, how many more people might have gotten the wrong idea as well?

It wasn’t until this weekend,, while reading about the doomed Roman campaign led by Crassus against Partha in 53BC, that I realized that the difference between brawling and skirmishing was lost on a good number of people… and that the distinction between the two, now less commonly understood than it might have once been, may be at the root of this unexpected loose cannon question.

First, let’s quickly differentiate a brawler from a skirmisher: A brawler is indeed a loose cannon, a guy looking for a fight, any fight, just to satisfy a personal need for action, attention or control. A skirmisher, however, is tasked with a series of very specific  tactical objectives: testing an enemy’s responses, forcing an enemy to slow his advance, tire an enemy out, demoralize him, confuse him, take the initiative away from him, expose weaknesses, and so on. In war, skirmishing helps destabilize an enemy either during its advance on a position, and stresses its outer layers (scouts, patrols, etc) while it defends a position. The skirmisher’s job is to try to lure the enemy into pointless clashes, tire him out and/or force him into a defensive posture. A far cry from the odd loose cannon brawler at the local ale house.

Though neither a brawler nor a skirmisher, I understand the value of (and need for) the occasional skirmish if and when the situation calls for it. And in the last 18 months, a handful of situations relating to the Social Media space – especially in its vulnerable early stages – called for some emergency skirmishing: Opportunistic network marketers trying to pass themselves off as experts, horrendously inaccurate R.O.I. “equations” and calculators, snake oil by the gallon, and finally $3,000 Social Media certifications offered by made-up international organizations. Something needed to be done right there and then to make sure these types of things didn’t take hold. Not everyone agrees with me on this point – some prefer a more live and let live approach – but I don’t think I’m wrong. Here’s why:

“Experience teaches us that it is much easier to prevent an enemy from posting themselves than it is to dislodge them after they have got possession.” – George Washington

See where I am going with this?

When a particular type of opportunist knows they won’t be called out on their BS, there’s little reason for them to hold back: If they see easy money to be made from other people’s ignorance, they set up shop. And once they’re in business, in the age of search, it is much more difficult to undo the damage they have done than stop them in their tracks before they have a chance to get any traction.  While it is easy to be of the opinion that results and ensuing reputations will soon separate the real deal from the charlatans, I am of the more pragmatic opinion that Search is currently far more important than reputation in this space: Anyone with a little SEO savvy can tip-toe their way to prime Google real-estate and fake legitimacy long enough to make a killing before anyone realizes they had no idea what they were doing, and subsequently force legitimate professionals – who may seem no more and no less qualified to a 1.0 CMO – to defend the very notion of Social Media expertise for years to come. No thanks.

Snake oil pushers, charlatans and even misguided posers aren’t merely bad neighbors with questionable methods. For those of us who work in the Social media space, and for those whose companies work with it, they are the enemy. Plain and simple. Friendly smiles and good manners aside, they are the single greatest threat to the good name of Social Media program management/integration consulting.

George Washington isn’t wrong: Don’t let the weeds take root.

Those occasional little skirmishes you see me get into on this blog aren’t what the French would call “coups de tete.” They aren’t the result of impulsive behavior or a bad temper. Far from it. Next time you notice me poking at specific people who deliberately push bad practices, snake oil or other nonsense at the expense of unsuspecting clients just because they feel that making a buck justifies it, don’t mistake either my intentions or methods for a lack of self restraint. For better or for worse, there is calculated purpose in everything I say and do, especially when it comes to this topic. Every comma, every period, every word is carefully chosen to produce a specific outcome, which ranges from setting a topic straight (like R.O.I.) to publicly testing the validity of a potentially questionable social media certification program. (Remember ISMA?)

Sometimes, keeping the Social media space clean for newcomers and business execs forces those of us who can to ruffle a few feathers. I am in a unique position to do this because I don’t work for anyone. I don’t answer to a company who might not want to take sides on an issue like measurement, best practices or Social Media certification schemes. Until I decide to leave entrepreneurship behind and take a job with someone else’s company, nothing I say can rub off on anyone but me, and I take full (and careful) advantage of that rarest of freedoms – knowing full well that I may not always be able to do so.

Have a great week, everyone.

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“They were worried that I would get bogged down in wanting to do things, not just create strategy.”

David Polinchock / @lbbinc

One of the topics covered during the #LikeMinds Summit this past weekend was precisely this: The chasm between strategy and execution, especially as businesses struggle to understand how to leverage, integrate and operationalize Social Communications (what you do with social media platforms) in the coming 6-24 months.

Unfortunately, because the C-suite tends to look to itself when it comes to “strategic masterminding,” the focus too often shifts from execution at the customer level (the most important thing a business should be focusing on on) to… being the guy who came up with the game-changing strategy that will secure more funding and increase influence within the organization.

When this happens, strategy becomes a product, and that’s bad. Strategy isn’t a product. Strategy exists mostly in support of execution.

Any idiot with a powerpoint deck can deliver a “Social” strategy:

“We’ll create a facebook fan page, a twitter account, a LinkedIn Group, a YouTube channel, a blog, and a Flickr account too! We’ll convert all of our customers who participate in social networking into fans and followers, and we’ll engage them with content at regular intervals throughout the day. We’ll embed hyperlinks into our tweets and facebook updates so we can pull them to our website to increase traffic there. We’ll get lots of extra clicks. We’ll gain mindshare by being there with them on their favorite social platforms. When they talk to us, we’ll respond. We’ll monitor sentiment and mentions. Our social media strategy will be a success.”

Um… yeah, except… no.

Sometimes, companies focus so much on developing and implementing strategies that they forget to focus on what’s important: Focusing on the customers. That’s priority numero uno. As a consumer, I don’t give two shakes what a company’s latest strategy is. I really don’t care. You want to gain 4% market share in the next quarter? You want to dominate the tablet PC market? Okay. Great. What’s that to me? All I want is for you to improve my life. How are you planning on doing that? How does your strategy actually make anything happen on the ground? Have you thought about what happens when your theories actually touch the real world?

The gap between high level strategy and ground-level execution can usually be summed up this way: Do you understand the tactics and ground level dynamics enough to ensure that your strategy will turn into something more than just an inspiring powerpoint presentation? Yes = small or no gap. No = huge gap.

On the ground, in the real world, what does your grand strategy do to make me want to spend more time recommending you to my friends? Spend more time wishing I could fill my garage with more of your stuff? What’s your strategy to make my experiences with your brand outclass and outshine my experiences with every other company? What’s your strategy to be awesome?

Don’t just look at strategy from the top down and the inside out. Also look at it from the outside in. How does it play in terms of influencing customer perceptions and behavior? How does it differentiate you or increase preference?

Let me illustrate the difference between tactically-agnostic strategy and tactically-savvy strategy:

What could you do TODAY that would change the way customers feel about you?

a) Give them a 10% off rebate that may take 30-60 business days to process. (We’ll worry about eroding margins and loyalty later.)

b) Knock their socks off with incredible customer service. (Smiles are free and being helpful makes customers come back.)

– or another choice –

a) Try to nickle-and-dime a guest with a $10 bottle of water in their hotel room (hey, going after that incremental revenue looks genius on Excel. Let’s charge extra for everything! We’ll make billions off premium pillow mints.)

b) Slap a note on the bottle that says “It’s water. Of course it’s free.” (The repeat business, loyalty and recommendations are worth more than the odd begrudged transaction.)

Which hotel chain is more likely to get repeat business and earn recommendations?

Which of these options do you think a disconnected top-down strategy might have generated? a) or b)?

Strangely, few companies have an “awesomeness” strategy. They have growth strategies, sales strategies, reach strategies, campaign strategies, pull strategies… all of which include a lot of content creation, content distribution and push/pull schemes created and directed from the top echelons. Great stuff, don’t get me wrong. But also lots of wasted energy working its way down to customers through less than fluid “channels.” Lots of energy wasted encountering friction and resistance on their way to the customers. Encountering snags and problems.  That’s the execution gap. That’s the part of implementation that too much emphasis on strategy, coupled with an operational chasm between the “strategists” and the “doers” creates.

So, your company isn’t short on strategy. You have dozens if not hundreds of powerpoint presentations to prove it. The quarterly deluge of strategic plans and “bullet points” and budget proposals to prove it. Social Media-related or otherwise. How’s that been working out for you?

Social Media – as it relates to Brand Management, PR, Marketing, Business Development, Community Management, recruiting, internal collaboration, product innovation and crisis management – isn’t about developing the winning strategy. There’s no “win” in developing or delivering a strategy.  Any strategy. Ever. Anywhere. I mean, yes, you’re smart. We get it. Thank you. That’s wonderful. But now what?

The reality here, the nugget, is this: The emphasis on top-down strategy is completely wrong for Social Media and Social Communications. The way to truly make Social Media and Social Communications WORK for business requires a focus on enablement, not strategy. Strategies don’t generate revenue. Strategies don’t win market share. Strategies don’t make customers loyal. Strategies are bullets on a slide, ink on paper, words across a conference table. They’re essentially worthless until you can use them to move a needle.

The disproportionate investment in strategy vs. implementation and execution is at the heart of why “Social” works for so few companies right now.

1. What are we trying to improve? (What should we be trying to improve?) <– Start with customer experience. Always.

2. What will it take to make that happen?

3. Does Social fit in?

4. If so, how?

5. What can Social help us improve?

6. What will it take to make that happen?

That’s it. Those those 6 questions. Start there. Stop talking about it. Move towards something your customers will be able to grasp, enjoy, value and convey.

Next time someone wants to sell you on a strategy, tell them to come back when they can show you exactly how they plan to implement it. Always make the strategist responsible for the execution. You’ll save yourself a lot of headaches, and things will get done a lot faster.

Cheers,

Olivier

PS: The upcoming Red Chair double-workshop in Portland, Oregon (PDX) on March 11 and March 12 focuses on precisely that: How to actually put all of this into action. How to make it work. One session is designed for enterprise space management and executives, and the other for account management and Social Media for small business. It would be lovely of you to help spread the word, even if you can’t attend this time around. 🙂 For registration and information, click here.

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