Branding on a Broken Web – The APG @ The Economist

Exciting. Inspirational. Thought-provoking. And that was just the view from the room we were in. Last month, the Account Planners Group hosted an event called Ideas Exchange, in association with The Economist. Unlike New York, it is always remarkable just how far you can see being only fourteen floors in the air. The London Eye, Big Ben, the Shard and Canary Wharf reached into the sky, with rolling Surrey hills in the background. Many a visiting planner was captivated, before being regrettably distracted by some sort of talk going on elsewhere in the room.

Unfulfilled potential?

Opening the exchange of ideas was Aleks Krotoski, author of ‘Untangling the Web’ and visiting fellow of the London School of Economics. Aleks’ polemic rests on the idea that the Internet is not quite the idyll we initially imagined it would be. The Internet, according to Aleks, gave society a tabula rasa, a chance to create and nurture a platform that was unblemished with influence, or history, or imperfection. Instead we just went about transposing all the biases, prejudices and ways of working from the offline world onto the online one, creating the same communities and social hierarchies. The Internet was supposed to help us reach beyond our closeted knowledge and beliefs, to interact with those we had not met before, the types of people we would have not otherwise interacted with. Instead the opposite has become the case. There has been no utopian transcendence; none of us is virtually swanning round something akin to the pleasure gardens in Metropolis.

Moreover, the serendipity of the Internet that was, among other things, supposed to bring about such felicitous interactions, has been trampled on and abused (think Chatroulette). Aleks declared the web “broken”, breaking a little more every time a user has pushed to them what they want– or what they think they want – instead of having to proactively go looking for something. What we want is supposedly served up on a platter for us now, whether it be Amazon recommendations, or advertisements for sites / products we looked at quickly but have long since lost interest in. This collation and analysis of user behaviour has led to a backlash of sorts, evident in Microsoft’s recent announcement that it will have ‘Do Not Track’ set as a default option on its new browser.

The power of social influence and the declinism of serendipity

In discussing messaging and influence online, Aleks contended that attitudes and behaviour were shaped and formed in exactly the same way online as they are offline. She called the notion of influence “messy” and “unpredictable”. But on the question of how users decide which stuff to pay attention to online, the answer was clear; social influence. The way people become aware of content (and, by extension, opinion) is increasingly through social media, particularly on Twitter. Because we tend to seek out people similar to us online as in real life, this does not bode well for the objectivity of, for example, Fox News fans, as online their beliefs will be reinforced by the echo chamber they have created for themselves. Worse, this echo chamber is created more or less unbeknownst to the user, imperceptible as it is. Not entirely encouraging…

 

Alan Dunachie, director of operations at The Economist Group, focussed more explicitly on the business challenge of how brand owners can communicate in a world of, to paraphrase Aleks, tangled webs, and the role that ideas play in the network.

Tangled Distribution

Alan noted that for ideas to be powerful, they need to be shared and discussed. This sharing encourages something to spread far more quickly than it would have done in the past. The downside of such a system of distribution, as Alan admitted, was that, for anything a brand owner says, consumers can get instant feedback from friends, family and others. This goes for everything from chocolate bars to hotels and wine. Brands must express a view rather than tout a product.

Using stories to influence

The Economist Intelligence Unit, part of the Group, has helped brands solve problem with, what he calls, “editorially-oriented ideas”. Philips wanted to be seen by consumers as a ‘wellbeing’, rather than an electronics company. The Unit developed the idea of Liveanomics with the aim of making cities more productive, and thus enhance wellbeing. They collated urban experts, government policymakers and other from disparate associations, whose conversations then sparked engagement over social networks and traditional media with opinion leaders around the world, enhancing and reshaping Philips’ reputation.

The group also turned their attention inwards, developing the recent advertising campaign for The Economist with their “Where Do You Stand?” campaign, looking at the feeling a reader gets when engaging with the magazine, rather than just selling on its own reputation. As a result, the magazine saw an 11% increase in circulation, a 15% readership increase and 16,000 SMS responses, half of whom ended up subscribing.

All in all it was a fascinating debate on the Internet; how we shape it as users and how we can hope to influence it acting as intermediaries between the brand and the consumer.

On demographics, devices and ‘Downton Abbey’

“Keynesian paradigm shift” was a term Zeitgeist was introduced to back in those glorious days of university. We’re often on the lookout for that next shift. 2003 was the first time when Zeitgeist began to take blogs seriously, as your average Iraqi citizen started writing journals online that gave more of an insight into the invasion than any “embedded” Fox News reporter. Incidentally, anyone looking to know more about the way news was covered by those reporters under the care of the US military at the time should check out the fascinating documentary “Control Room”.

There’s has been much discussion of more paradigm shifts over the last couple of years as PVR / DVR devices like TiVo and Sky+ have set various network TV honchos and advertising execs fretting about the lessened impact of advertising caused by delayed viewing. Advertisements on television are scheduled at a particular time to appeal to a very particular audience, and may be very ephemeral in nature (eg for an upcoming event or film). Having viewers watch the commercial at a later time might be bad, as it could be – in the advertiser’s eyes – too late. But having the viewer fast-forward through the commercial break altogether is disastrous. Simply put, companies won’t pay to have an ad on TV if no one is going to watch it. This of course is especially relevant to shows with covetable demographics, i.e. Watched by the financially comfortable, as ironically they are more likely to have purchased a device that makes those advertisements fast-forwardable.

However, recent news should cheer those whose job it is to worry about such matters. In the first place, as the world economy stutters into recovery, advertisers are funnelling money back into mainstream media, particularly television, as we reported on last October. Moreover, as Variety recently reported, the feeling of watching a show as it is broadcast “live” is a special one. This has long held true for sporting events and the Oscars, but increasingly it applies to popular sitcoms and dramas, too. Shows like ITV’s recent Downton Abbey revealed that people made a point of watching the broadcast live so that they could engage more in the online conversations that were taking place on social networks like Facebook. UK TV ratings are now at their highest since records began.

This brings up two points, one of cultural philosophy, the other of political science policy. In the mid-1930s, Walter Benjamin wrote a seminal piece of work known as “The work of art in the age of mechanical reproduction”. The crux of this paper rested on the idea that there is something infinitely intangible and special about seeing the genuine artefact; beholding the original Mona Lisa in the Denon wing of the Louvre is a more special experience than looking at it on a postcard. There is an “aura” to it. If we extrapolate this to the world of film and television, that aura is fed now by social media chatter amongst friends.
From a policy point of view, an argument that Zeitgeist has mentioned before bears noting, that of technological determinism vs social constructivism. It posits the argument over whether what a technology is intended for necessarily dictates how it is used, and influences user behaviour. With a heightened demand for the live experience, evidently this is not the case with PVRs. Recent studies show that people are fast-forwarding through commercials less and less, and, as mentioned, gravitating toward enjoying the live experience more and more. A savvy person might ask how we can mesh these two worlds together. Zeitgeist wouldn’t be surprised to see in the near future programme recommendations appearing on your PVR from friends you are connected to over social networks.

Downton Abbey is worth noting again. In the past, when we have thought of wildly successful shows and films, thoughts of the latest teen sensation might have come to mind. And while Twilight and Justin Bieber do occupy a significant part of the current Zeitgeist, shows like Downton Abbey illustrate that there is another audience – a rapidly growing one – that is only just beginning to appear on the radar of media executives. As The Economist recently pointed out, the baby boomer generation has a relatively high spending power, and buys a relatively high quantity of media like CDs. And while, according to Variety, movie studios plan to release some 27 prequels or sequels this year, there are also signs for hope too. The King’s Speech came very close to not getting made after debacles with funding, and Black Swan had a similarly bumpy road to production; Variety says it “kept losing its funding until the day before principal photography”. These were two of the greatest (and most mature) films of last year according to Zeitgeist, with the former winning both Best Picture and Best Director. Black Swan has grossed more than $100m in the US. The only other film from Fox studios to do the same was the latest Narnia incarnation, which must have cost north of $200m to make, once marketing is included. Films about royalty and ballet are ones that will appeal to the superannuated audience, and not coincidentally perhaps the ones with the highest profit margins. The much-coveted 18-49 demographic is an anachronism, let’s think bigger (and older).

Movie Moves

From industry paradigm shifts to Paramount trailers and viral websites…

Zeitgeist has had it’s eye on the UK production company Shine for some time, watching it grow into the powerhouse it is today, all under the stewardship of Elisabeth Murdoch. Elisabeth, married to Matthew Freud of Freud Communications, has seemed to want to keep her distance from the Murdoch dynasty since leaving the fold ten years ago, unlike her brother James, who worked for News Corporation in Asia before taking the helm at Sky in the UK. Indeed, Elisabeth’s husband has – strangely for a man whose career is public relations – made little to no attempt to keep his barbed views of News Corp.’s Fox News to himself, saying he was “shocked and sickened” by the content and bias of the cable network. So it thus came as some surprise to Zeitgeist to learn that a deal was recently completed for Shine to become part of the Murdoch empire for £415m. What this will mean to the independence and creativity of the group remains to be seen. But I suppose if the sustainability-themed Avatar can make it out of the notoriously arch-conservative News Corp leviathan, anything’s possible.

In other news, Netflix has been in the papers again. After announcing it would be partnering with several consumer electronic devices, (Mashable made the analogy of having a Netflix button on your remote control), this week the company announced it was trying to develop a remake of the classic UK TV show House of Cards, with Kevin Spacey starring and David Fincher directing, committing to 26 episodes, “taking it into uncharted territory that would put it in direct competition with HBO and other premium cable channels”, writes Mashable. This will be the first time that the company has commissioned and created its own content, further disrupting models of distribution, which itself is a bit of a house of cards. While Netflix pushes into other companies’ territory, Amazon encroached on Netflix‘s by announcing at the end of last month that they would be offering premium customers access to 5,000 TV shows and movies. Though Reuters points out that moves like these are attempts to “woo” companies like Time Warner and the afore-mentioned News Corp., the reality is more tricky, as the same article points out in the very next paragraph,

Media companies so far are cautious about allowing their content to be used on these types of services because they compete with cable operators that pay a premium to carry TV programs and movies. The fear is that people will drop pricey cable subscriptions — known in the industry as “cord cutting” — in exchange for streaming video offered by Netflix or Amazon for instance.

Yesterday it was reported that Paramount will release a film on DVD and on the peer-to-peer service BitTorrent at the same time, with the latter platform supposedly functioning to incentivise people to then buy the DVD. Might a ten-minute teaser have been better than releasing the entire film? Such a teaser is being provided at the moment by Warner Bros., which recently developed iPad apps for both Dark Knight and Inception, providing the first five minutes of the film for free.

Ten days ago, Facebook announced that it would be getting into the film-rental game, as reported by the FT. This is a broader stroke for Facebook in an effort to create a benevolent ‘walled garden’; an area for users to navigate the web, communicate with who they want and angage in the services they want, without ever having to leave the Facebook environment. Zeitgeist never thought they’d be mentioning the recently-released Chalet Girl on this blog, but Variety reports the film has made an interesting marketing move of releasing an interactive trailer on Facebook, where users have the option of “like”ing the trailer at various points. Peter Buckingham, head of distribution and exhibition at the UK Film Council, sagely points out the novelty of such an exercise for film marketers; “The film industry really has not woken up to how important metadata is”.

There are exceptions, however. This past week saw the release of a trailer for an eagerly-anticipated (by nerds) summer film, directed by JJ Abrams of Star Trek and Lost fame and exec-produced by Steven Spielberg – Super 8. And what is the best way to reach said nerds? Why, firstly by providing a super-nerdy website that doles out microscopic kernels of plot information on the film under the guise of hacking into a computer from the late 1970s, and secondly by releasing said trailer on Twitter (see top image). As Zeitgeist has said before, know your audience.