23 Jun 2010

Essay: The Apple Threat to Online Advertising

The following essay is also my column this month on Forbes.com.

Caption: Safari's new Reader view could rob publishers of page views especially if it finds its way into iOS devices

Watch Out: Apple May Aim To Reshape Online Advertising

Apple, without a doubt, is creating a massive sea change in how we interact with digital content. Note that I didn’t say “the Web.” This is because the millions of iPad and iPhone users spend more time within Apple’s walled garden of apps rather than in a browser. However, there’s a potential dark side to the millions of Apple devices being sold and it should give every marketer pause.

If you look just below the surface of all the hype around the iOS devices (the iPads, iPod Touches and iPhones), there’s a dirty little secret. Apple might be positioning the platform as a Trojan Horse that reshapes digital advertising as one man—Apple CEO Steve Jobs—thinks it should work. While this messianic zeal benefits users, it could conceivably create a competitive moat for Apple and its partners.

Jobs has more than a passing interest in online advertising. He co-authored a patent filing in 2008 called “Advertisements in Operating System.” Now Apple has put into place systems that handicap existing dominant formats like rich-media ads and interstitials.

Case in point: Safari. On June 7, the day Apple unveiled the new iPhone, it also shipped Safari 5. The browser, available for both PCs and Macs, has a feature called Reader that neutralizes multipage articles and interstitial ads by giving the user the option to read an article in a new clean view that strips away all but the text of the article.

A primary benefit of the new Reader view is that it allows a user to consume a multipage story without having to endure multiple clicks, interstitials and a new set of banner ads. This sounds great but it may rob publishers of ad impressions.

Now, granted, no one is saying that Safari is a powerhouse. It has a minuscule 10% share, according to Net Applications. However, keep in mind this feature is found only in the desktop version of Safari today. There’s no reason why Apple wouldn’t bring Reader to the growing armada of iOS devices—which commands an 60% share of all mobile browsing, according to Quantcast. The end result may be that more publishers will flock to the App Store and iAds.

Equally troubling is Apple’s posture toward rich-media ads. In the April open letter “Thoughts on Flash” Apple and Jobs clearly outlined why they are not allowing Adobe to push forward with its plans to bring the technology to the iOS ecosystem.

Most of Jobs’ arguments were primarily based on technology issues and user experience. Ads were only mentioned briefly. However, if you read between the lines, there may be another motive. Apple could be trying to pave the road for the success of iAds. (Disclosure: Edelman, my employer, is Adobe’s PR agency.)

The takeaway here is that as iOS devices grow in popularity, the platform encourages advertisers to increase their iAd budget and/or develop their own apps. This benefits developers and iAds advertisers. Now, I’m no lawyer, but it’s conceivable that if the iOS platform one day achieves any kind of dominant position the way Windows has, this may be viewed as an anti-competitive move.

No single company will ever control the Web. However, as Apple’s power grows and it begins to push into advertising with new formats, it must not put up roadblocks to other formats as it has done in the case of Flash or could do with its Reader view. Pressure from CMOs and others in the industry like the Association of National Advertisers and the IAB will ensure that even as Apple devices gain share advertisers will have the same freedom of choice in how they advertise in the post-PC age that they did in the previous era.

10 May 2010

Social Luxury is Personal

The following piece was also cross-posted on Forbes.com.

Social Luxury is Personal

Social networking started out as "things" - destination sites like Facebook, Twitter and YouTube that we browse to and use to connect with our friends, family and co-workers. Now, however, it is poised to become "everything."

Just like water blankets the Earth's surface area (and sustains life), social networking technologies will soon cover 70 percent of the web. This will breathe ubiquitous global social connectivity into once solitary experiences. The impact for luxury brands will be dramatic. For decades, luxury brands have appealed to an insatiable emotional need that millions share. As a society, we aspire to purchase products and services that make us feel wealthy, either financially or emotionally. This often changes with the times - and it's steered by local cultures as well - however, the trend spans centuries.

This raises a key question: in an era of ubiquitous social networking - one where every online and mobile experience is enhanced by the lens of our friends - how will luxury be defined?

Where once a single TV show or a celebrity could define luxury, that's no longer the case. The media environment is too fragmented today and it's increasingly personalized by the connections we keep. This means that luxury is fractional. A brand that's achieved luxury status among thirty-something moms in LA could be considered taboo by the same demographic in NY - all because of the types of social connections we keep online and how they shape our worldview.

With this dynamic in mind, here are three steps that luxury brands should consider to either maintain or grow their iconic status...

1) Make every online experience a social one

Every day consumers are talking about luxury brands online. This means we form opinions based on what we see/hear from our friends. To succeed, luxury brands will need to turn once static experiences into social ones that are personalized so that the right message is communicated at the right time to the right group of individuals in the right context - all while appealing to their higher emotional needs.

Facebook's new social tools, introduced last month, are a great first step in this direction. Levis (an Edelman client) have deployed them across their web site, turning every experience into a social one that's filtered through our friends.

2) Develop coveted social objects

Luxury goods are coveted. Many of us want to be seen carrying our Louis Vutton handbag or wearing a Coach watch. This could translate online as well. Just as millions hope to one day be able to afford luxury brands, they also might want to achieve some level of similar status online within their social network.

Enter luxury brands. Every single one of the iconic companies on this list has the opportunity to create and launch social objects that consumers can earn the right to embed and/or share on their social profiles.

3) Map and tap networks

Every individual has role models. It used to be, however, that celebrities dominated this space. Today, however, it's possible that our view of role models is changing, perhaps moving closer to the company we keep online. Luxury brands that can understand how role models are formed, map these networks and tap into their power will be in the best position to capture attention in a highly personalized environment.

29 Apr 2010

The Case for Converging Your Personal/Professional Networks

Image via Snorgtees

Do you "cross the streams?" In other words, do you co-mingle your personal and professional social networks? This is a tough question to answer. In this essay (which is also my Adage column next week), I present the pro-side of the argument. I also opened up this discussion on Facebook.

As I travel the world, however, I am hearing distinct argument for keeping these separate. LinkedIn CEO Jeff Weiner and I discussed this yesterday. He (correctly) called me "an edge case." So with this in mind, consider this Part I. In Part II I will look at the case against "crossing the streams."

As always, I am eager for your views. Help me learn. This is a very confusing topic for many people.

Professional, Personal Social Circles Converge...and Confuse

About a year ago I became Facebook friends with Rob, the dealer sold me my car in 2007. Now I don't have any connection Rob other than this single transaction. Yet whenever I bring in my wheels for service, he is able to recall some nugget from my activity stream. You see, Rob is smart. He is using social networking to maintain a level of "ambient awareness" about his customers' total lives and he lets us do the same about him. This instills trust. And trust is the future of business. In all likelihood this helps him drive more sales.

Social networking is rapidly blurring the edges between our professional and personal spheres. Many of us co-mingle colleagues, clients, friends and family within our social networks. Others do not.

While the long term effects are uncertain, this convergence is creating mass confusion among marketers and other corporate types who for years have worked to ensure these circles remain separate. They maybe fighting a losing battle since this train left the station long ago.

The days of us yelling "yabba dabba doo," sliding down the dinosaur's tail and leaving work behind at five are long over. Thanks to the proliferation of mobile devices, we are constantly connected to our work. On the flip side, we don't hesitate to stay close to our personal networks while we're in the office.

Social networking is amplifying and accelerating this existing trend. It's forcing all of us to make choices about how public we are willing to be - and what, if any boundaries we want to maintain between our networks. Regardless of your individual stance, this subtle, yet important change is going to reshape how you and your colleagues do business.

The societal norm, it seems, is tilting more toward what thinker Jeff Jarvis calls "new publicness." This is especially true among younger workers. And while there are certainly major pitfalls - ask anyone who lost their job over questionable Facebook photos from a weekend party - there are clear benefits as well. Caveats aside, I believe that that those who allow these circles to overlap will build stronger ties all around. At our heart, we're all human beings, not automatons. If we open up and let our customers, colleagues and partners see even just a little bit of our total activity streams, we will break down barriers, instill trust and more lasting business relationships.

This isn't black and white of course. Each individual will have to decide just how public he/she wishes to be and to what end. This is why Twitter, a public channel, may not be right for everyone. Yet Facebook, which allows the user to tailor his/her specific updates just to a single network, could be.

The good news, however, is that publicness is not an all or nothing equation. You can start small, as many are. Some employees, for example, are solely using internal social networking tools like Yammer to update their colleagues on their day-to-day activities. Other more extroverted types, meanwhile are tweeting their passions. Some even log their total lives on FourSquare, all in full view of their professional and personal networks.

Ultimately this is an individual choice and it must take into account a lot of factors, including corporate policies and industry norms. But in an age where transparency begets trust, there's a lot to be gained on an individual and institutional level for those who decide in some way to live some of their lives in public and converge networks. Just ask Rob, who I will definitely buy from again.

13 Apr 2010

The Swiss Cheese Web Ain’t The Web

The following essay is also cross-posted on the Edelman Digital blog.

Edelman Digital Homepage

Seemingly overnight the Information Superhighway (does anyone call it that anymore?) became littered with potholes. In the last week Apple sold nearly 500,000 iPads, none of which support key technologies that we have come to rely on, including Adobe Flash, Windows Media and others. (Adobe and Microsoft are Edelman clients.)

For the last week I have been using my iPad as my primary device. I enjoy the slate format and think it’s the next big thing for computing – one that will see lots of winners. Unfortunately, this comes at a cost. I don’t get to experience the web like I used to, but a version of it that only Apple approves of – one that’s peppered with potholes that turns it into the swiss cheese web. The above image is what our own web site looks like on the iPad, which proudly uses Flash for certain features.

This poses a challenge for Web developers – one that Josh Bernoff so eloquently details on his post on the “Splinternet.” Should one develop the most robust experience using the best technologies on the market or should they kowtow to Apple’s vision for the Internet? Tough call.

In the end we believe that marketers should develop for the masses – the common denominator that unites the broadest universe of consumers. Right now, that’s desktop browsers with plug-ins. However, if developers need to start coding different versions of their site for different platforms, then we have trouble ahead. Standards are what made the web become a mass consumer medium.

Edelman Digital calls on Apple and all companies to support consumer choice – to allow consumers to have the same experience they are accustomed to on the desktop. Where once mobile devices were not powerful enough to run rich media technologies, that’s no longer the case. Why ban Flash and WMVs yet support Quicktime and PDF – two other standards. It makes no sense.

The Swiss Cheese Web ain’t the real web. At minimum Apple and others need to convey this up front (a disclaimer in their ads would be a nice start). However, it is our hope that they will open more and embrace the same standards that have allowed online innovation to blossom.

12 Mar 2010

How Google Approaches Social Media As A Team Sport

Photo credit: Karen Wickre via Danny Sullivan

The following was cross-posted on the new Edelman Digital web site

Another month, another visit to Silicon Valley – my home away from home – and, with it, another visit to the Googleplex in search of insights. This time I chatted with Karen Wickre, who oversees Google’s growing armada of blogs and Twitter embassies.

Google, perhaps more than any other company, has a culture of openness. Often a company’s culture shapes its communications strategy. And that’s certainly the case with Google. So social media comes naturally.

Karen first launched Google’s corporate blog back in 2004. Today the company has digital embassies for virtually every product. This armada spans dozens of blogsTwitter profilesYouTube and more recently Facebook.

Back when the Official Google Blog launched, posts were conservative. Wickre, a former tech journalist, told me over breakfast that early items were almost whimsical, focusing on the food at Google (which I can assure you, rocks).

While the blog still features some trivial fare, no one could call it – or any of Google’s other digital assets – a light weight. In fact, the opposite is true. Google uses its armada to take on hard issues likeChina, public policy and privacy. And it largely eschews press releases, unless they are financial or material to shareholders.

While Wickre doesn’t oversee all these embassies, she serves as a beacon for the teams that manage them – subject matter experts like product managers, engineers and marketers. Like a good coach, she provides templates and best practices and answers questions as they come up. Wickre, in the meantime, is turning her attention to how the company can strategically use its own Buzz product.

Wickre is one of an emerging breed of professionals that companies hire to manage/lead companies down the social media path. Not nearly enough credit goes to people like her. These individuals are often the ones who have to effect change – with the help of partners like us.

Google, perhaps more than any other company, is a model of social media success. One reason is that they tap into the three key trendsthat I wrote about earlier. They are real-time, visible and data driven. However, what they do best is embrace using multiple messages, formats and stories.

I subscribe to a fire hose feed for all the Google blogs as well as their Twitter and Facebook embassies. On any given day you will find a wealth of news, tips and stories that are tailored to specific interests. Only care about Gmail? There’s an embassy for that. How aboutpolicy? That too.

However, Google’s social media success goes beyond just having lots of teams engaged. Each venue slants the content to the reader/viewer’s needs and utilizes different formats – short form, long form, video, images and more. The end result is that Google creates massive surface area that make them hard to miss in an age where information choices are ubiquitous.

The takeaway here for companies is that, when possible, they should consider creating several blogs and – more likely – digital embassies inside existing communities. One Twitter presence might not be enough. The same goes with Facebook. (Note that this is just one approach and not the only one. Some advocate centralizing content into a single place. There are pros/cons to each.)

Businesses today need to consider having multiple streams that are mapped to high priority interests. This creates surface area and lots of entry points for stakeholders to get engaged. What’s more, the content should be “hand crafted“- eg tailored to each community. And these spaces should be managed by identifiable employees who are subject matter experts.

This is how I am tailoring my own content. I use Twitter for sharing/conversing around links and news. My new Facebook community is for discussions and sharing insights and observations. While my Posterous blog site is for essays, videos and the occasional digital doodles.

Now scaling might intimidate some. According to a recent Smartbrief survey, time is the chief obstacle to engaging in social communities. However, if a business makes social media a team sport, as Google does, anyone can succeed.

Steve Rubel's Posterous

Steve Rubel (bio) is SVP, Director of Insights for Edelman Digital, a division of Edelman - the world's largest independent PR firm.

He is charged with helping clients identify emerging technologies and trends that can be applied in marketing communications programs. Rubel also explores these topics on his site and in monthly columns for Forbes.com and Advertising Age. He can be found on Twitter and Facebook as well.

Steve can be reached via email at steverubel@gmail.com.

Note: Everything posted on this site is Steve's personal opinion. It does not represent the views of Edelman or its clients.