DirecTV loves Mad Men, hates its fans

August 31st, 2009

Last night’s episode of AMC’s Mad Men, the best episode ever, was “brought to you by DirecTV.”

DirecTV, which claims to offer “more of your favorite channels in HD than anyone,” does not carry AMC in HD.

Ironic, eh?

My inner 12-year-old weeps for EA’s NCAA10 TeamBuilder

August 27th, 2009

Hey, it could happen

In his latest Comedy Central special, Patton Oswalt ponders going back 10 years in time to tell his past self about the wonders of 2009. I’m paraphrasing here:

“What’s that you’re listening to? Oh yeah, our old Walkman. What’s in it?”

“Oh you know, a mix tape with our 25 favorite songs.”

“That was a great tape. I’ll tell you what. Pull out that tape. Break it in half. That’s how big your Walkman is going to be in 2009.”

“Wow. How many songs can that hold?”

Every song you’ve ever heard, or ever will hear, or will ever be written.”

“What’s that cost? Like a million dollars?”

“No, no, no. They’ll be everywhere. You’ll get them in gift bags and try to re-gift them to your nephew, and even he will be like, ‘Thanks a lot, [expletive].’”

This is more or less how I feel about EA’s TeamBuilder application for NCAA Football 10. I don’t know if I could even describe it to my past-version without him having a full mental breakdown.

When I was a kid, I was a huge football nerd. (OK, I’ve steadfastly failed to mature on this front.) My nerdy pastime was creating fake teams, complete with rosters, stats, uniforms, histories, and mascots. You may ask, “For what purpose, Eric?” And then I would pity you for not have a childhood passion of your own.

Anyway, fast forward 20 years. EA Sports has released NCAA Football 10, which is the first version of the game I’ve bought in years. You’ve always been able to create teams in the game (as well as in the Madden NFL series), but with the TeamBuilder web app, you can now create whole teams from scratch, including uploading custom logos for the helmets.

And I’m majorly geeking out.

San Francisco University Fogcutters. Sutro Tower on the helmet. How awesome is this?

While the product itself bears some of the flaws you’d expect for a 1.0 release, TeamBuilder works on many levels for the gamer:

  • It creates an emotional attachment to the game. You can put your little Division III art school in the Rose Bowl. You can re-create a historical team (’85 Hurricanes!) you cheered for and play them against the current edition. You can even make yourself (or an idealized, 19-year-old version of yourself) the QB if you want.
  • It integrates what the web does best (data manipulation and communication) with what the console does best (game play).
  • It socializes the experience. You can make your teams available for anyone to download onto their console, and you can download others’ creations seamlessly. If some other NCAA fan has already done the work for you, you can play with his team, and even tweak it to make it your own.

NCAA 10 is also loaded with other shiny things, including deep integration with ESPN and a mode that ties the game to the real-world NCAA football season. This integration isn’t a gimmick; it’s a key value of the game. And my inner 12-year-old couldn’t be more excited about it.

Repair California: the movement for a new state constitution

August 12th, 2009

Repair California panel

Last night, I had the honor of attending a San Francisco organizing meeting for Repair California, the movement to call for a constitutional convention. It was marvelous to attend an on-topic town hall-type session where nobody demanded to see anyone’s birth certificate.

The utter brokenness of our state government is as obvious a 7.0 earthquake right now. Our state education system ranks near the bottom in student achievement and performance, even when controlling for poverty and demographic factors. Our university system, once the world’s best, is being hollowed out by budget cuts. Our water system is built for a state with half its population, and catastrophe awaits. Our transportation systems have been neglected for 30 years, leaving LA and the Bay Area with America’s #1 and #2 most congested freeways.

And nothing can be done about any of it, because since 1870 our Constitution has been amended 500+ times. Its 75,000 words contain layer upon layer of special interest protection, rendering our elected leaders essentially powerless to change anything. Not that they want to change anything — mercilessly gerrymandered districts and the two-thirds “yes” requirement to pass a budget has led to electoral non-competitiveness, ideological extremism, and utter gridlock.

The problem isn’t the bums in office. The problem is systemic. And the system needs to get blown up. Ergo, a new constitution.

And so it is that concerned Californians from across the ideological spectrum have come together to get the constitutional convention ball rolling. It will require getting two initiatives on the ballot, and working out a lot of details about choosing delegates and limiting the the new document’s scope. (I used my microphone time to suggest that delegates should be chosen randomly by assembly district, and then they would caucus to elect delegates to the state constitutional convention, similar to the way a jury selects a foreperson.  One of the movement’s leaders, Jim Wunderman of the Bay Area Council, said this proposal is already under consideration.)

Everyone who lives in California should get on board right now. A new constitution is going to happen — almost everyone accepts that it has to. And it will be up to citizens to make sure that California’s new constitution is of, by, and for the people, and not hijacked by the special interests that dominate the initiative process every election.

Old Spice’s disgusting campaign on Yahoo! Sports

August 3rd, 2009

Back when I worked on My Yahoo!, one of my projects was to create ad quality standards. Users were generally displeased with seeing an LREC (the standard “large rectangle” ad you see on so many sites) where they used to see their own content, so we had to be sensitive to what users were experiencing in that spot on the screen.

We certainly would not have approved this:

Disgusting Old Spice ad on Yahoo! Sports

(Click on it to see its gory detail.)

This is the Old Spice campaign currently running on Yahoo! sports. The LREC (which is animated) shows what is supposed to be a very hairy armpit crusted with chunks of antiperspirant residue. (One of the chunks falls and crushes a car, for some reason.) This campaign fails for two very obvious reasons:

  1. The LREC: This may say more about me than the ad, but when I saw the LREC, my first thought wasn’t “armpit.”
  2. The “takeover” portion: Anyone who enjoys seeing their browser’s vertical borders covered in crusty armpit hair, raise your hands.

I have a pretty strong stomach, but I am repulsed. Is it just me? Or is this an ad standards FAIL?

Has the bank branch reached the end of the road?

July 31st, 2009

Umpqua's lobby

When I first went to work for Wells Fargo, one of the things that was hard to get used to was what they called their branches: “stores.” In hindsight, it made a lot of sense. Retail banks are called as such for a reason, after all. Most people think of branches as places to transact, but they’re very much retail environments, where brands are established (and refreshed), customers are profiled, and products are sold.

Around the turn of the millennium, the branch looked doom. Online banks with no physical locations were growing fast, and the traditional banks were building out their online capabilities.

Then traditional banks changed tack and doubled-down on meatspace. Major players built thousands of new branches to attract deposits, and some even radically redefined branches entirely. Umpqua’s wi-fi lounges (pictured above) and WaMu’s Occasio were particularly innovative. (Sadly, WaMu’s new Chase overlords are doing away with Occasio.) Commerce Bank grew super-fast with the simple innovation of extending their hours to times that were more convenient for working people.

But now Bank of America is retrenching, shuttering 10% of its branches. Does this mean the end of the store strategy?

Yes and no.

Yes: Retail (consumer and small business) customers are becoming ever more comfortable with online services. As they spend more time interacting with banks online, banks are finding more ways to market and sell through online channels.

No: America is over-retailed in general, and banks are no exception. BofA probably had too many branches to begin with. Other big banks that built out (or acquired) branch networks during the housing boom are probably now looking at their cost structure and finding many unprofitable locations. Shuttering may occur, but people will still want a physical location to transact checks, cash, and the other tangible forms of money that still power our everyday economy.

We can only hope that more of these banks will follow the Umpqua and Commerce models and create a branch experience that its customers don’t hate. Whoever does that will win deposits, and today, that matters more than anything.

Five questions small businesses should ask about social media

July 21st, 2009

Social media is no longer buzzing like a honeybee or a power line. Rather, Social media is roaring, like a chainsaw.

Social media is not just the newest new form of direct marketing. It’s rapidly becoming the primary way that people –- your customers –- seek recommendations and chat with each other about their purchases.
In this environment, every forward-thinking business is already trying to figure out its social media strategy. But the social media ecosystem is so fluid that trial-and-error will only reveal temporary solutions.  And trial-and-error is, by itself, not really a strategy.

So what questions should businesses, especially small, local ones, be asking themselves about social media?

1. Do I need a social media strategy? The answer to this question is a universal “yes,” even if your strategy ends up being “do nothing.” But it’s hard to imagine a small business that couldn’t be served by the fastest emerging method of person-to-person communication on earth.

2. What type of interaction would best serve my current business goals? Social media is about multi-party communication. It connects a business with its customers, but more importantly it can connect a business’s customers with each other. To form an effective social media strategy, a business needs to figure out who needs to be interacting with whom, and how that interaction should be taking place.
Some examples:

  • A restaurant that seeks to increase patronage from its regular customers would want a platform to promote its daily specials and perhaps promotions (“free wine Wednesdays”).
  • An emergency plumber which gets its main business from immediate problems would want a platform where its current and prospective customers could quickly reach them.
  • An auto repair shop which faces lots of competition and customer skepticism would want a platform where past customers could attest to the shop’s honesty and reliability.
  • A web-based business would want a platform that could drive traffic to its site and encourage its customers to promote the business to others.

3. Which platforms would best serve those communication needs? Obviously, “Get me on Twitter and Facebook” is not a social media strategy. But once you’ve decided who you’re targeting and what you want to accomplish, you need to pick your platforms: Facebook, MySpace, Twitter, YouTube, Yelp, Ning, Yola, and other sites each serve some purposes better than others.

4. How should I craft my presence on those platforms? The WSJ reported recently on a Twitter campaign by web site builder Moonfruit which increased its homepage traffic 13-fold and paying customers by 20%. The cost? Ten MacBook Pros. Since the contest ended, MoonFruit has lost more than 1/4 of their new followers, but now they’ve built a list of 34,000 followers to engage. It’s never been so easy to build a list that large, but now MoonFruit has the challenge of maintaining these subscribers’ interest, or they’ll tune out. Which leads to…

5. How much time can I commit to maintain my social presence? Unlike building a website, creating a blog, social network page, or Twitter feed takes ongoing effort. To keep your business from being sucked into the social media black hole, you have to maintain the presence with new interaction (or “feed the beast”). Each social platform requires a minimum frequency of interaction to be effective. Figure out who will own your business’s interactions, and how they’ll commit to keeping the brand alive online.

This last point is crucial. Creating and abandoning a social media platform is like letting dust collect on your store shelves.  Thus, if you’re not serious about interacting with your customers online, you should find another method of marketing your business. And good luck finding one that’s more effective.

Housekeeping

July 16th, 2009

I had turned off comments for spam reasons. I’ve installed Akismet on this blog now and reopened the comments. Have away.

Teen marketing, or What your Facebook friends aren’t telling you about the world

July 14th, 2009

Is Twitter really for old people? Do most kids really prefer watching pirated DVDs to going to movies, and do they really mostly talk to their friends over their XBox 360s?

My friends who happen to be marketing types have been asking themselves these questions this week, as the Internet went all a-titter about the recent thoughts of Matthew Robson, a 15-year-old boy with a summer internship at Morgan Stanley in London. The venerable investment house for some reason decided to publish Robson’s anecdotal report How Teenagers Consume Media as “research.” (How many of us have relied on the summer intern to tell us what the kids are up to?)

OMG! Everyone is on Facebook, nobody listens to the radio, Twitter is pointless, and banner ads are teh sux. Quick, everyone revise your youth marketing plans!

Oh wait. What about the 99.9% of British teens who aren’t friends with Matthew Robson? (And what about the 65% of Twitter users under 25?)

In this context, it’s worth reading (or revisiting) danah boyd’s remarkable “The Not-So-Hidden Politics of Class Online,” a talk she delivered to the Personal Democracy Forum in New York.

In this talk, Boyd (sorry, the lower-case name drives me bonkers) asserted that Facebook and MySpace drew similar size audiences in America. But when she polled her “primarily American, primarily liberal-leaning, primarily white, and primarily involved professionally in politics” audience, she found that almost all of them used Facebook, but almost none of them used MySpace.

It’s more than obvious that online social networks, like all networks, are class stratified and homophilic. As Facebook opened up beyond college kids, many MySpace users chose to jump ship. But just as many stayed put. So, who bailed? Boyd’s research of young people led to a complicated conclusion:

It wasn’t just anyone who left MySpace to go to Facebook. In fact, if we want to get to the crux of what unfolded, we might as well face an uncomfortable reality… What happened was modern day “white flight.” Whites were more likely to leave or choose Facebook. The educated were more likely to leave or choose Facebook. Those from wealthier backgrounds were more likely to leave or choose Facebook. Those from the suburbs were more likely to leave or choose Facebook. Those who deserted MySpace did so by “choice” but their decision to do so was wrapped up in their connections to others, in their belief that a more peaceful, quiet, less-public space would be more idyllic.

Even within Facebook, the social divisions remain extreme. If Morgan Stanley were to ask me what Facebook users were like, I’d tell them they’re iPhone-using, gourmet-cooking, Democratic-voting, Daily Show-watching, mid-career professionals. What I’d really be reporting are the psychographic profiles of Jewish kids who grew up in Miami in the ‘80s, mid-‘90s Wesleyan alums, and Bay Area MBAs. (My wife, who has lots of friends from her tiny southern hometown, gets a somewhat different picture.) Your experience probably varies. Same deal with Twitter – I’m following 200-odd feeds, and none are of the “My cat is sleeping on my lap” variety. Your experience again probably varies.

The California tech community, which chatters at itself continuously via Facebook, blogs, and Twitter, has an understandably warped view of the pervasiveness of certain tech brands, and the use of technology in general. In our little world, Apple, Twitter, Facebook, Google/GMail/YouTube, Skype, and Firefox dominate. Meanwhile, the hundreds of millions of global citizens on MySpace, Yahoo!, AOL, MSN/Hotmail, and Windows PCs are ignored or disparaged, to say nothing of all those still listening to the radio or reading dead-tree periodicals.

It’s easy to get wrapped up in a world where “teenagers do X,” but some of us still remember high school. If Morgan Stanley came calling, I probably couldn’t find a damn thing that even a solid plurality of my classmates were into. My crowd liked the Dolphins, Led Zeppelin, getting good grades, hating George H.W. Bush, and being scared of girls. They were generally affluent enough to have cable TV, but not enough to have new cars. That’s how my report on the American teen would have read.

Fast forward 20 years. Twitter isn’t for everyone. Nor is anything else. Teenagers’ technology habits will evolve as technology itself does, but also as those teenagers go off to college, or the workforce, or the Army, or all the other places they can go. As marketers and citizens, we should never mistake one boy’s friends or our own experiences for those of the world. Or as Boyd puts it:

If you are trying to connect with the public, where you go online matters. If you choose to make Facebook your platform for civic activity, you are implicitly suggesting that a specific class of people is more worth your time and attention than others. Of course, splitting your attention can also be costly and doesn’t necessarily mean that you’ll be reaching everyone anyhow. You’re damned if you do and damned if you don’t. The key to developing a social media strategy is to understand who you’re reaching and who you’re not and make certain that your perspective is accounting for said choices. Understand your biases and work to counter them.

That last line is great advice for life, too.

The veracity of the NFL’s “strength of schedule”

June 26th, 2009

I’m no statistician, but I love data. And while I spend a little too much of my day with economic and marketing charts, I occasionally enjoy geeking out with other fun data.

And so when the NFL announced that my beloved Miami Dolphins would have the league’s toughest 2009 schedule, I sought reassurance in the numbers.

The NFL is notoriously topsy-turvy. Due to the high turnover of players, coaches, and team surgeons, about half of playoff teams this decade failed to return to the playoffs the following year. Given that, what exactly is a measure of “strength of schedule” as defined by opponents’ prior year won/loss records really worth?

Quite a lot, actually. I looked back at 2008’s strength of schedule rankings, as defined by opponents’ 2007 W/L percentages. Then I compared against how tough those 2008 opponents turned out to be, as defined by Football Outsiders’ amazing DVOA metric of team efficiency.

The sad-sack Browns, Bengals, and Lions ranked 1-2-3 in opponents’ DOA (partially because they never got to play themselves), but the Super Bowl champion Steelers were right there at #4. The Titans and 49ers’ schedules were significantly easier than projected, while the awful Raiders and Chiefs’ schedules were projected to be terrible and turned out average.

Overall, though, the correlation was uncanny.

That, my friends, is an r-squared of .534.

This season, the AFC’s best division in 2008 (the East) is scheduled to play the NFC’s best division in 2008 (the South), so the top eight slots for strength of schedule are held by those eight teams. Unmeasured in this metric are the details of the schedule. In addition to the #1 ranking of opponents’ 2008 W/L record, the Dolphins must play a Sunday west coast road following a Monday night home game (both against 2008 playoff teams), a Thursday night road game (against a 2008 playoff team) following a Sunday home game, a stretch of four road games in five weeks, and two outdoor cold-weather games.

And then there’s that r-squared.

Ah, who cares? This season is going to fun. Bring ‘em on.

Serving small businesses can’t be a side project

June 10th, 2009

Last Friday, I spent part of a sunny afternoon on the patio of Delancey’s Crossroads Café, chatting over coffee and tea with Randy Almond, Yola’s VP of Marketing. Yola, which recently rebranded (from Synthasite) and relaunched at this year’s Web 2.0 Expo, has developed a killer drag-and-drop browser-based platform for small businesses to develop their own websites and blogs. I’ve tried it out, and it’s a superior product.

yola logo

Yola’s still working on positioning itself as a small business specialist, but its potential seems awesome. They currently operate a “freemium” business model, charging nothing for the product and the hosting (which is also free of ads), but cross-selling custom domains and SEM to their users. More importantly, as Yola ramps up its user base, it’ll have the relationships with customers to further cross-sell online services, especially when they want to bring e-commerce or apps to their sites.

As I learned in my years developing small business products at Wells Fargo, SMB’s needs are wildly different from those of consumers or large enterprises. “No-duh,” you’re thinking. But I’ve come to be unsurprised whenever I meet someone struggling to market services to SMB, simply because they don’t understand how their customers operate and why they buy.

A couple months ago, I met with two sales executives at Network Solutions in Virginia. Like Yola, NetSol also positions itself as a SMB-focused service company, a market niche made necessary by losing its domain registration monopoly in the late ’90s. (The reg business, 90% of their revenues just six years ago, is now just 45%.) NetSol successfully figured out that the vast majority of SMBs are very small indeed, and that domain registration is just the first handshake in what can be a broad service relationship. Broading this relationship, however, requires NetSol to cross-sell and service the customer effectively and respectfully. But it took much of this decade for Network Solutions to get the formula right.

Meanwhile, all types of SMBs are trying to figure out how to leverage online tools and platforms to drive customer acquisition. SEM and SEO are king and queen of this realm, but they’re relatively new and utterly confusing to most SMB managers. If Clickable’s research is accurate, it’s unsurprising that only 50% of Google self-service advertisers return the next year. But think of all the opportunity Google has to turn that around by making their platform and corollary services ever more SMB-oriented.

Yelp is another site that’s potentially awesome (or disastrous) for SMB. Just two weeks ago, I got my hair cut at Spargo in downtown SF, based on Yelp’s wildly positive recommendations. When I told my haircutter that Yelp brought me there, she seemed about as surprised as she did when I admitted I’d never had a manicure. Yelp relies on a community of consumers to build support for a business, but also permits a business like Spargo to augment its presence with pictures and even a “June Caveman Special.” (Yelp has unfortunately also taken heat from business owners who claim that buying advertising will get you special treatment, like deleting disputed reviews.)

So what do small businesses want? While a one-person plumbing operation and a 35-employee web services company may seem to have little in common (and any company wishing to serve both should have a segmentation strategy), small business owners have some broad things in common. They want:

  • to be respected. Small business owners have neither time nor money to waste. As a Twitter evangelist learned the hard way in a San Francisco Small Business Week event two weeks ago, SMB managers want to understand, decide, and move on. They do not want to be told to “play around with it.” They’ve don’t have the bandwidth to fiddle; they’ve got to make payroll this week.
  • to be served NOW. When they have a problem with you, they need a solution. Now. And on their schedule, which is often not regular business hours. Business owners often spend business hours working in the business, and off-hours working on the business.
  • numbers. Small businesses have books to balance, and scarce capital to monitor. If they’re not getting a positive ROI on something, they’ll probably bail and focus elsewhere.
  • help. Small businesses are burdened with demands — cash flow, health care costs, red tape, complicated tax laws, hiring and keeping the best people, and finding and keeping their customers. They seek value and simplicity to balance this all. Can you improve the bottom line and make things easier? You win.
  • to be a part of something. Business owners are the rock pillars of many communities, physical and virtual. They see themselves as the leaders upon whom this great country depends. They are generally pro-market and pro-freedom, but they believe in collective action to improve conditions for everyone. Are you a part of their communities, too?

SMB is the engine of America’s economy, responsible for more than 90% of private sector employment. Like America’s population, they’re diversifying rapidly, but some things remain the same. Including this: Your business can’t serve SMB as a side project. It requires understanding, focus, the right products, and unequivocable value.