Fink about the money!

I was over at Zeus Jones blog a few days ago, and Adrian’s post on monetization of social media got me thinking about digital again, and whereas I usually fire off a long comment when that happens, I reckon it’s time to write some thoughts down over here.

Firstly I can’t bear that word monetization. It’s the English part of me I guess, but it just feels crass that everything has to be monetized. I’m reminded of this each time I watch Fox News, because all the bullying of any (pinko Commie bastard) liberal guests they bring on to bait is won by their vulgar but implicit idea that if profit is not made then its not of worth. This is the point where I think the United States has gone slowly wrong in the last 50 years because the values it was built on are not about profit to the detriment of all else. OK I got that off my chest. Back to making money! We’ve also all got bills to pay. The environment of course being the biggest!

Yes of course there should be some sort of transactional value exchange model between social media platform providers and the people who frequent them. It does however feel like the old media model of huge profits and mass market broadcasting persuasive powers has disintegrated.

Micro-transactions work very well here in China for the most popular platform QQ using a virtual currency that is paid for in hard cash. (Kind of like a Second Life model) but this is where I like to think social media should embrace a number of revenue streams and think about revenue diversity because it’s obvious (to me) that good old fashioned bread and butter banner advertising works very effectively in Facebook. I generally love the ad to the left of their pages because they are eerily effective and are mainly China location based services making them highly relevant. In short they work. I like them even.

So we’ve got micro-transactions, and then traditional banner advertising. I like to call this distractive (contextual) advertising because if it’s good enough, then it distracts much like print advertising does today, interruptive advertising which is generally disliked but is based on the commercial break and includes pre-roll advertising as well as the hated pop up and even ideas such as “get this digital mobile phone for free as long as we can give you x number of ads a month”

I also think there are more innovative ideas that could be considered such as tiered or rewarded internet activity. Adrian has done a fine post about social media but as he correctly points out most people are hanging out on the net to get away from dull content and patronizing marketing communications. However the tiered subscription or rewarded activity is based on a model that really needs to embrace some ideas that Adam Crowe was, I think, the first to bring my attention to. The notion of data portability. The information accumulated by internet usage should belong to the customer not us.

If we (or Google or the ISPs) do the unthinkable and give our potential customers their own internet usage data to trade with us we then are truly opening up ideas loosely called the free market economy. It’s probably more American/United States than apple pie and fanny packs put together now that I think of it. This then opens up our potential customers to benefit from their data portability in the best way possible. The provider they choose to allow receipt of marketing communications from. It’s a bit like a bazaar. If you don’t like the voice of the trader or the goods they are selling, you can stay clear of them. Imagine a world where in return for premium content we permitted ourselves to exposure of specific marketing models. If the advertising sucks we make a decision about whether we can get by with lower value advertising-free content or not at all.

Either way I think we are moving into a new era of marketing communications because as an advocate of 'the medium is the message' it's clear to me that I never got ‘spammed’ while watching a commercial in a movie theatre, direct mail is lower down the food chain because its so much more cheaper to indiscriminately ‘target’ (using the language of old) with geography or basic demographics acting effectively to the point where a 3% response rate still makes it worthwhile.

But here’s the context. The internet is both a place where I can watch a Cannes winning Youtube clip and also open up my mail to be offered a larger penis or a fake Rolex watch. That never happens on TV or even direct mail and so the value of the internet is diminished by this activity. There are innovative ways around this if advertisers want to raise the perceived value for a short while. Like for example if I was P&G I would buy all the available online advertising space within a specific digital media aperture. Maybe the whole of the NYT or The Guardian for a few days. Just wipe out every ad in the online editions and put one sponsor message on there, advertising some spot removing clean or dandruff clearing shampoo. Something relevant seems appropriate!

There are ways to be creative on the internet, although finding the clients bold enough to do stuff like this is tough. Anyway in principle the point I want to end on is that it's not us who should be targeting the customers, it’s the customers who should be targeting us.

This is after all the 21st century and not the 20th. We had two world wars in that one.

Update: Adam links to this which is just the sort of example I'm talking about with P&G. i.e. buying space that would normally be filled with ads.

China 2.0

Here's what I would do if I was serious about marketing in China. China has the largest internet population in the world, and it's still growing. The shift from television screens to internet screens on computers or mobile phones is the largest media exodus ever. More people will engage with the internet on a mobile phone in China first than in any other country. The numbers go on for ever really. China is all about the numbers.

However Chinese internet isn't really Web 2.0 yet. The Western model of identity and profile through Facebook and Myspace et al simple doesn't work here, but use of BBS is unbelievably masssive. I wrote about it over on Kaiser Kuo's excellent digital China blog some weeks ago here. The most dangerous focus group topic I ever raised was identity versus anonymity here in Beijing with quite progressive University students. Even mentioning that 99.9% of China's internet voice is completely anonymous on Bulletin Boards (BBS) against the thought of 'appearing' on the net as themselves was enough to silence a room full of respondents with fear, as if I were interviewing them for Komitet Gosudarstvenoi Bezopasnosti in Soviet Russia. I'm not exaggerating.

Whether its the State, or the group or the family there's something about being identified or attaching a face to content that terrifies Chinese folk. Face is a big deal in Asia. However the internet is a very valuable and highly appreciated part of middle class Chinese ability to express themselves and articulate their thoughts. Sure a lot of it is flame wars but I think we all know that flaming is part of growing up on the net. Its not hard to wind people up via the interweb is it? Once that realization is discovered, we tend to move on. Possibly to identity/reputation management which is definitely the new game in town now that Google is in charge.

So here's the thing. 70% of Chinese BBS is built on a platform called Discuz which is owned by Comsenz. They just had another million bucks thrown at them by those guys at Google. Now the killer thing about Discuz is that it is partially open source. Open source is almost an heretical idea in Asia. The notion of 'sharing' is antithetical to the Asian mindset. Secrets and information are valued beyond anything else to the point that sometimes it would appear that some would prefer suffocation than sharing their oxygen supply with other parties. I really mean that, it also explains a lot of the copy mentality that exists in this part of the world. That's the irony to the insane fixation on secrets and not sharing stuff; nobody does anything really new and so everyone is watching everyone else to see if an incremental change or new direction is taken. It also explains why only one or two Asian brands, including Japan have brands that stand out.

But with Discuz there is an opportunity to create a mini platform between profile driven social networks and BBS topic driven net activity. I would suggest writing some code for some widgets to sit on top of Discuz driven BBS and then we have a half way house to facilitate cross networking of BBS and profile/identity management that exist with traditonal social networking sites. I'd even go so far as to encourage all the flamers to pick up a new moniker and treat it like they're in front of their family at all times. Like it's their new 'face'. ....Start afresh like!

So the trick now is to figure out where brands should hang out on the net with their customers and their respective communities. Nobody actually has a full breakdown of this information although Sam from See I See/China Internet Word of Mouth knows more than most.

A proposal I made was to do a standard quantitative research project of the top 500 BBS communities on the Chinese net. If that seems like a lot then hold steady because China is massive and there's more. I think the top 500 BBS communites across the metrics of 'most affluent', 'most populous' and 'most influential' would make sense. Then I would segment all those groups across the usual community interests that advertisers are most interested in, moms and families, car lovers, tech lovers, political, travel and all the usual useful-in-a-rough and-ready-way segmentation seen on those standard tick boxes we are asked to fill in when we subscribe to internet services.

Once this 'new digital media planning data' is available I'd then put forward a China 2.0 media plan. Using the fundamentals of Transmedia Planning and some viral work that embraced volume seeding, Lo-Fidelity video and the upside of risk, as talked about back here in the post Black Swan (and here too) I'd think about developing a plan for engaging with existing customers and potential customers on the basis of being interesting or useful to them. That plan should be strategically built on a broadcast to narrowcast basis or vice versa depending on the rationale for engaging/reenforcing something at an internet dialogue level first or television's monologue model. Its quite exciting when I start to think about creative briefs written with the net first or telly first as a rolling narrative direction. Lots of opportunities there.

The only part I'm still trying to figure out is how to 'represent' in those tens or hundreds of 'communities' on the net where it's important to be useful or interesting for specific clients and their needs. I've given it some thought and my instinct is to identify the people who are most active in and respected in the community. The trick is NOT to buy them, because they then lose their authority and respect (Shills they scream!), but to build up their reputation by giving them the ability to 'share' through either reputation enhancements of information sharing or favour dispensation such as Skype credits or Taboa (China's Ebay) coupons as an idea. It's crucial that all actions are transparent, open, honest and authentic otherwise it all falls apart. Brands aren't very good at that short list of Web 2.0 guidelines and it explains why most marketing 1.0 peeps and planners 1.0 types don't get it.

Ideas like the one above are unlikely to be implented here though any day soon. One of the most frustrating aspects of working in developing economies is just how many bad habits are picked up from the West and then applied cookie cutter style over here. The advertising format is pretty much the same for lazy/untalented marketers and agencies (insert pretty model with product implying that you too can be cool/beautiful/powerful). And then the methodologies for assessing the effectiveness of those campaigns are just lifted from the West without much thought to the notion that Asians have a different perception of the truth or how to articulate it. Even the focus group dynamic is completely stuffed given that cultural differences like Guanxi in China or Grenjai in Thailand exist. This is where even the sharing of inconsequential information is considered reckless and stupid. I did write back here how I would approach Asian research with a fresh mindset because the same old companies come back with the same old rubbish and its not hard to figure out better ways.

I've pointed out that a lot of the advertising people in China have sat on top of 15% GDP growth for 10-15 years and are at best unremarkable and at worst believe their own P.R. but I'm guessing that one or two might read the above and see the seeds of China 2.0 in there. It's all very exciting when I think about it - The End.

Update: I see that some of these ideas have started to materialize over on CWR blog.

Looking for a Planning Director

We're looking for a Planning Director to work in China and run a department, but not directly for me. Which is probably a very good thing. If anyone has any suggestions please leave a comment or go to the 'about me' me section for my email. Japanese recruitment agencies might want to pick up the phone unlike these fools.

Insider News

Picture by holyfucking shit

I've long been a fan of Mohammed Iqbal of O&M Bangalore. Not just because he's bright and writes really interesting papers such as the origin (and resiliance) of aphorisms or the long tail of brand communication, but because there's nothing more exciting than when an agency hires some top thinking talent outside of Europe or the States for rapidly growing markets.

Well, more than this, Iq has just posted a vertical Google search engine for all the blogs on the plannersphere which means that I can now find those posts that I failed to bookmark. I've already checked it out and it worked a treat for some posts I was hunting down about Nicolas Taleb's Black Swan. Well done and thank you Iq for doing something really useful. Go check it out, add your blog if you're not listed and make time to read his blog archives too!