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Sometimes it pays to come second

July 13th, 2010

Be the first, be the best, be different is a catchy line that floated around a few years ago as a motivator for business success. When you think of some real world examples of this line Sony and Apple do a pretty good job. The Walkman, the iPod, the iPad have all ticked the boxes of being the first, the best and different.

By being at the forefront of innovation, Sony and Apple’s brands sit nicely with the desires and demands of people who consider themselves innovators and early adopters. These people are also at the heart of social media and popular trends so it’s no surprise that when Apple and Sony release their new products it creates such a remarkable buzz.

Problem is, there are only a small number of innovators and early adopters in the world and most of them get bored really quickly.

This is where we see ‘copycat’ manufacturers like Google and Dell waltz in, take the innovators ideas that society has liked, alter them slightly and mop up the remainder of the market with similar products sold at a considerably reduced price. That’s where the real money is made.

And this is what’s going to happen with Google’s Android. The iPhone 4 is having some speed wobbles and I just can’t help feeling that Google’s gradually building some momentum underneath the glamour and will be able to use all its arsenal of services to systematically swallow Apple’s profits.

If Google do this Apple will, of course, kick into the next big thing. I do wonder though if they’d make a better profit if they repackaged some of their products to compete with copycat brands after the buzz has settled.

Perhaps be second, learn from the best, be similar might be a better line for those that don’t mind missing out on the glamour, but in doing so minimise the risks and still make a very successful business. Just ask Trade me.


Bidding Bon Voyage to Bebo

April 9th, 2010

This week’s announcement from AOL that they’re likely to sell or close Bebo after paying US$850 million for it early last year did not surprise me. AOL are legendary for muddling even the best of products and for the last 12 months I’ve seen Facebook really outperform Bebo on a number of levels. And for me, a core level is advertising.

In early 2007 I began running ads for some of my clients on Bebo. This new player on the local social media scene had quite simply exploded with Kiwis aged 12-24 and I was keen to get my clients’ sites noticed here.

The journey to get ads to air was very drawn out. At that stage Bebo didn’t have anyone on the ground in NZ so I had to go all the way to Jim Scheinman, the CEO in San Francisco, to get some sort of traction on who and how we could get our ads rolling.

In the end the solution was to use Google’s Placement Targeted Network. Now I was absolutely happy with that. Using Google I could easily optimise exposure and cost. After all, a site receiving hundreds of millions of page impressions was ripe for the picking and low cost high exposure advertising was underway.

Subsequently, we had a number of really successful months running ads for our clients on Bebo until it all went to pot when Bebo enlisted TVNZ’s help as their NZ media sales partner. All of sudden a complex middleman was here using a CPM model for buying ad placements on Bebo. It just didn’t work.

So we stopped advertising on Bebo. Our clients couldn’t afford it.

Fortunately at this time another social media site called Facebook was building real momentum in New Zealand.

Facebook had learnt a thing or two about surviving online and invested in creating an ad management console that enabled people to manage their own advertising just like Google. We tried it with a few of our clients and it worked. And it still works for us every month.

Now I know we’re only ‘little old New Zealand’, but I can’t help think that that very simple decision of keeping the ad logistics simple and enabling a long tail of advertisers to fill these vast voids of ad inventory was a pointer to why Bebo is melting and Facebook is solidifying its position as the global player in social media.


New Zealand’s piping up!

March 11th, 2010

Basically every Tweet I’m following at the moment is about the announcement of Pacific Fibre. This new venture “aims to connect Australia and New Zealand to the USA with a high capacity low latency fibre cable.” And what a Twitter friendly story we’ve got here.

It’s being backed by Kiwi heavyweights Sir Stephen Tindall, Sam Morgan, Lance Wiggs, Mark Rushworth and Rod Drury and it appears they’ve timed their announcement just right to go gangbusters across a particularly useful crowd of thought leaders.

Pacific Fibre impact

Bernard Hickey from Interest.co.nz tweeted an hour ago and it’s just exploded. He just told me that his initial tweet has been retweeted over a dozen times in the last hour. Looking at Datascope I can see his name’s all over things. Chris Keall from NBR is doing nicely too.

The story has just been picked up as the lead on NZ Herald and Stuff too.

And this news is welcomed. Pacific Fibre could be something spectacular for New Zealand. As far back as I remember New Zealand’s Archilles heel with Internet business has always been our limited pipes. The opportunity is massive. It’s going to put the crawlers up Telecom – something I’m sure appeals to Sam Morgan!

I’m a little surprised that Peter Jackson and Richard Taylor aren’t in this uber-consortium too. I’d imagine large bandwidth for their large hard drives would be a real boost for their businesses.

Interesting news. And go Twitter for sharing the love so quickly.

Good luck to all involved.


Copy and paste – the trick to social media marketing

February 1st, 2010

Today Beyonce won the Song of the Year Grammy for “Single Ladies (Put a ring on it)”. If you haven’t heard or seen it yet, have a look. The song’s catchy and it’s quite an impressive bit of choreography mixed with a certain sex appeal. (My oldest daughter asked me why they were dancing in their undies!)

The version I watched had just received 9.6 million views on YouTube. This was the version uploaded on 13 October 2008.

Single Ladies has been around for a long time and it’s recognition today at the Grammys was possibly due more to its gradual infection into social media, or more specifically, YouTube. Here’s how it went for me…

After viewing the video I looked to the side and saw a five star rated Saturday Night Live parody of the video featuring Justin Timberlake donning a leotard. Very funny. Views – 17.9 million. Date uploaded - 18 Nov 2008. Talk about a great launch pad for a song.

Then there’s another highly rated video featuring a chap with a world-class motor thinking he’s Beyonce. Funny-ish. Views – 10.9 million. Date uploaded – 10 January 2009.

Oh and there’s a dance troupe pulling a flash mob dance to Single Ladies in London. Clever considering they do the whole thing in one take. Views – 3.5 million. Date uploaded – 20 April 2009.

And a baby watching Single Ladies on TV and dancing. Cute. Greatly assisted by Dad laughing. There are few things more infectious than laughter. Views – 8.1 million. Date uploaded – 26 January 2009.

But wait, there’s more! Now a grown male in a nappy creating a meme out of the meme of the baby dancing to Single Ladies! Ridiculous. Date uploaded – 28 September 2009. Views 868,029.

So far all the parodies I watched were by people simply trying to make others laugh. It wasn’t until June 2009 when a group actually levered “Single Ladies” to simply promote their own cause.

Enter the Jonas Brothers, a Disney produced boy band who’ve shamelessly lifted the SNL “bloke in a leotard” idea and lip synced Single Ladies to promote their next release. Now I would normally mock this but their video has been viewed 16 million times! Date uploaded – 3 June 2009.

Accepting the Jonas Brothers are already a very successful boy band in the US, it’s interesting to see that successful exposure and marketing in social media doesn’t have to be an original idea to capture people’s imagination. In fact the copying of an idea, execution, and song, with just the slightest individual interpretation, can be more popular than the original. On this wee journey alone the rip off versions have accumulated five times more exposure of Beyonce’s song than the original video.

Perhaps the Japanese were ahead of their time with Karaoke.


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