Archive for July, 2006

Jul
31

The brand, an anthropological definition

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50585706kalamalkalakeatdawn_18849 The brand is an elephant and we are all blind men.  The designers have one idea of what a brand is.  The Jungians another.  The marketing managers, b-school professors, advertising creatives, account planners…everyone has a formal model, and a working one.

There is an anthropological view, and Rob Walker captured it most precisely yesterday in the New York Times

[A brand is] a process of attaching an idea to a product. Decades ago that idea might have been strictly utilitarian: trustworthy, effective, a bargain. Over time, the ideas attached to products have become more elaborate, ambitious and even emotional. This is why, for example, current branding campaigns for beer or fast food often seem to be making some sort of statement about the nature of contemporary manhood. If a product is successfully tied to an idea, branding persuades people — consciously or not — to consume the idea by consuming the product. Even companies like Apple and Nike, while celebrated for the tangible attributes of their products, work hard to associate themselves with abstract notions of nonconformity or achievement. A potent brand becomes a form of identity in shorthand.

If brands are ideas, then branding is a process of meaning manufacture and management.  That’s our job.  How to get meanings into brands, that people might extract this meaning for purposes of identity construction.

References.

Walker, Rob.  2006.  The Brand Underground.  New York Times, July 30, 2006 and here

Announcement

I am on vacation this week.

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Coke_2 The pressures are extraordinary.  Coke is still more profitable  than Pepsi, but Pepsi has pulled even with Coke in market value (at $103 billion).  Ten years ago, Coke was three times bigger.  The value of the Coke brand has declined 20% since 1999. 

Superficially, the problem for the Coca-Cola Company looks like a long tail one.  In the beginning, there was a one cola, and it’s name was Coca-Cola. Now the CSD (carbonated soft drink) category has differentiated within and exploded without. 

Consumers are flocking to a new breed of coffees, juices, and teas — all categories where Coke has historically been weak. For the longest time, Coke seemed in denial, more fixated on reversing the stagnation in soda than investing in the alternative beverages that consumers were clamoring for.

Clearly, the Coca-Cola Company (TCCC) needs to be more things to more people, but not many more things.  The trick is to be each of these things with ferocious intensity.  So when they did  Fruitopia, it would have been better not to do it in that half hearted "if only this were a soda" way.  Fruitopia needed to be sold as if it were a tiny start up not an obligation. 

Fragmenting markets do not, in this case, demand the product and management of long tail diversity.  It just looks that way.  (And it must look that way to corporations that spend a lot of time selling one or two brands millions of times a day.)  The real problem is not extensity, it’s intensity.  The problem is not the new diversity of the marketplace.  It’s the old single mindedness of the producer. 

Yes, a new culture is upon us.  But the real challenge is the old cultures that still prevail within the corporation.  It may be possible to cultivate lots of diversity within the corporation but I suspect that "skunk works" strategies will be called for.  The corporation will have to multiply itself.  The most deeply rooted "we are one organization" models will have to be denied.  In order to muster that ferocity of committment from which great brands spring, it will be necessary to engage in new acts of disorganization.  Yes, the marketplace is more various.  But this does not require long tail strategies.  It only means that the corporation becomes more various, too.

References

Anonymous.  2006.  Queen of Pop: Meet Mary Minnick.  BusinessWeek. August 7, 2006.  here.

Categories : Chunky marketing
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Yesterday, Lee Gomes of the Wall Street Journal weighed in on behalf of chunky marketing. 

He says,

Wired Magazine editor Chris Anderson’s hot, new best seller, "The Long Tail," is causing a sensation with its eye-opening claims about the way the Web is rewriting the rules of commerce. But I’ve looked at some of the same data, and some more of my own, and I don’t think things are changing as much as he does.

Gomes complains that Anderson’s vaunted 98 Percent Rule is without foundation, that the Ecast data no longer makes the point Anderson says it does, and that the the "misses outsell hits" notion will not actually apply at Netflix and Amazon at least for another decade. 

Gomes says that 2.7% of Amazon’s titles produce 75% of the revenues, at Ecast 10% of the songs produce 90% of the streams, and at Rhpsody 10% of the songs produce 86% of the streams. 

[W]hile every singer-songwriter dreams from his bedroom of making a living off iTunes, few actually do, mostly because so many others have the very same idea. And to the extent that Apple is making money off iTunes, thanks go to Nelly Furtado and other hitmakers. Indeed, you can make the case that the Internet is amplifying the role of hits, even in relation to misses, not diminishing them.

References

Gomes, Lee.  2006.  It may be a long time before the Long Tail is wagging the web.  Wall Street Journal. July 26, 2006.  here.

McCracken, Grant.  2006.  More on chunky marketing.  This blog sits at the intersection of anthropology and economics.  July 19, 2006.  here.

Acknowledgement:

Thanks to Ennis of  SepiaMutiny for the head’s up. 

Categories : Chunky marketing
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Jul
25

Your next vacation

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Anthropologists_1I have an idea for your next vacation.

Phone Saida at Saros Research in London and set up ethnographic interviews with 10 people in London.

It sounds strange, I’m sure.  Who wants to play anthropologist on their holidays? 

Well, if the object is to penetrate the barrier that stands between every tourist and country/culture, ethnographic interviews are really very usful.

Russell Davies and I (with the help of people attending Russell’s Account Planning School of the Web) were recently wrestling with the idea of cruise ships, those suburbs of the sea, and it occured to me that almost all touristic experience has the quality of cruise ship containment.  We may get off the ship from time to time, but the closest we are getting to the host country is a shop filled with touristic chakahs that play out stereotypes and help extinquish the possibility of cross culture contact. 

I do these interviews for a living.  But I am suggesting that you do them for the sheer fun of it.  On a recent trip, I found Londoners fascinating on several topics, including how dinner parties are changing in London, the difference between lager andstout, what is the deal with Manchester United, anyway, when and how to use one’s best "telephone voice," gardening the Tony Blair way, and how English audiences received The Da Vinci Code (in some cases, with audible and enthusiastic scorn, apparently).

You will have to pay these people about 100 pounds each to sit for the interview.  But it’s  bargain, I’m telling you.  Interesting, lovely, charming, interesting people, will let you into their homes and the lives.

This is not sight seeing.  You want to the British Museum, Big Ben, the Thames, except from the window of your taxi as you race from interview to interview.  But it is the kind of contact that we treasure when it happens accidentally. 

Why wait for it to happen accidentally?

Redtailed_hawk Yesterday, I came upon a red-tailed hawk sitting in a tree.  She was about 60 feet from the ground, on a branch in full view, looking as if she couldn’t quite decide what to have for lunch, a neighbor’s cat or the anthropologist gazing witlessly up at her. 

It was a thrilling experience…and a terrifying one.  Up close, there was no mistaking that this raptor was a killing machine. 

I was joined by an attractive woman who was out walking her two dogs.  I pointed out the hawk and she assumed her best "Polly wanna a cracker" tone and said to the hawk, "squawk! who’s a beautiful birdie, squawk!."

Zut alors!   She was hailing a magnificent, alarming bird of prey with an imitation of Elmer Fund talking to a parrot.  No…I can’t imagine either…

Hollywood_2 Poor Hollywood.  It is being hollowed out.  Some companies flee to the high ground of the block buster.  Other descend to the indie market.  The tradition stamping grounds of the market place, the $50 million picture, is being abandoned. 

We learned yesterday that Disney has taken to the high ground.  Anne Thompson surveyed the industry and finds those who believe this is an indication of things to come.

Where Disney is going is the future of the business.  The future will bring fewer movies, more niche and art movies at lower budgets, a concentration on tentpoles.  People won’t be making any films over $20 million or under $100 million.  [Tom Pollock, Partner, Montecito Pictures]

The culprit?  The capital markets.

It’s been proven over and over again that the returns on invested capitol over the life of films in that budget range [$50-$80 million] just isn’t good enough to justify the costs. 

All seven studies are cogs in the wheels of public companies.  The way the town is going is a mix between tentpole movies with super-duper blockbuster appeal to everybody and quadrant movies aimed at a niche audience.  The studio indie subsidiaries will stay around.  It’s a capital allocation decision.  [David Miller, Sanders, Morris, Harris Group]

The middle of the Hollywood market is being hollowed out.  That $30-80 million range.  This is why, as we noted yesterday, Disney is deemphasizing Touchstone.  There are a few studios still working the middle, 20th Century Fox and Universal among them, but, as Anne Thompson wonders in her intelligent way, how much longer?

Hollywood has found its devil and its deep blue sea.  On the one side stand the marketers who have always insisted on mass appeal and the tent pole picture.  (The appointment, announced yesterday, of Aviv as president of production at Disney is a harbinger here.  Aviv used to be the head of marketing there.)  On the other, the capitalists who insist they know makes make a good investment in this industry. 

Now, I believe that Hollywood should make movies that make money.  Hollywood might still be an orange grove (and America an unrecognizably different country and culture) if it had ever been otherwise.  But I am not so sure that Hollywood should be deferring to the marketers or the finance people. 

As a marketing guy, I happen to know that the marketers are almost always talking through their hats, and that it is guite wrong for Hollywood meekly to accept their bullying.   Marketers never really came to grips of marketing to mass markets.  This means they are unprepared to reckon with the realities of more minor ones.  (I mean, in some cases, they are spectacularly off the mark.)

I am not a finance guy, but I know enough about the profession to reach for my wallet when someone says that something has been "proven over and over again."  I believe it is time to ask David Miller to stand and deliver.  What are these proofs of which you speak, sir?  Let’s see em.    Some of your creative types may be intimidated by this sort of thing but those of us who loiter at the intersection of anthropology and economics are made of sterner stuff.  (I mean of course Steve Postrel and Peter McBurney.  The rest of us are total creampuffs.) 

There is an alternative.  It’s called chunky marketing.  Somewhere between the long tail of the indie market and the tent-pole blockbusters, there is a lot of money to be made. 

This is, after all, when culture and commerce flourish.  This is where creativity and capital are happiest with one another.  This is where the antinomies of our culture learn to accomodate one another.  I mean, creativity by itself?  Good lord, it is art school naive and avant garde pretentious.  Capital by itself?  Why, I believe, it looks a lot like Connecticut, and no one, not even the capitalist, thinks that’s a good thing. 

So before Hollywood decides to hollow out the middle, perhaps we could interrogate our "experts" a little more closely.  Thank you, Anne Thompson, for getting the process started.

References

Thompson, Anne.  2006.  Risky business: Changes at Disney signal ‘strange tides.’ The Hollywood Reporter.  July 21, 2006, pp. 5-6. 

Categories : Chunky marketing
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Jul
20

Disney, going less chunky?

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Disney Disney is moving briskly away from long tail and chunky strategies. Yesterday, it appointed its president of marketing, Oren Aviv, as president of production.

So how mass is Aviv?  Completely, by the looks of things.  He has been assigned the task of slimming down the number of Disney movies from 18 to 12.  He will reduce the edgier, more adult, Touchstone to one or two pictures a year.

Disney and Aviv are now looking movies "four quadrant" films, like Pirates, that appeal across what Adage calls "the broadest demographics."  When Aviv was asked by the Hollywood Reporter what constituted a Disney picture, he referred to G to PG-13 ratings, movies that speak to the "whole family," and movies "have appeal across the board."

It is all very well to start mass.  This was the way that Hollywood succeeded in the first place.  It refused arty and avant garde strategies for movies that played it straight down the middle.  But things have changed.  It is not clear there is any mass now to court. Even if there were, it’s not clear Hollywood could craft the blockbusters of yesteryear.  (As I was pointing out a couple of days ago, Disney very nearly rejected one of the most appealing things about Pirates.)

No, in a perfect world, I think, you want to balance your portfolio. Maybe lay some bets in the long tail world of indie production.  You never know, you might back a sleeper hit.  Certainly, lay some bets on the chunkier world of the mid size film.  This strikes a balance between the big talent that only Hollywood can afford with a certain freedom of topic and treatment that will speak first to a chuck of the market, and then perhaps the whole darn thing.  Let’s face it, it’s much easier to find a sleeper in this terrain than in the long tail world. 

We observe with interest that the woman Aviv replaces, Nina Jacobson, an eight-year Disney veteran, has been connected to some very chunky projects, including The Sixth Sense, Remember the Titans, the Princess Diaries, Twelve Monkeys, Dazed and Confused.  The Hollywood Reporter says that Jacobson was thinking of getting Disney into the horror genre, which is very chunky when it isn’t long tail.

Aviv sometimes makes chunky noises, as when he says that Narnia destroyed King Kong by getting at the "organic elements speaking to specific audiences," specifically kids (with the child actors), teens (with the special effects) and readers of the 70 million Narnia books published. I guess this is a sort of umbrella strategy.  It’s starts mass and reaches down into chunky marketing with specific appeals to particular audiences.  And then it goes after these chunks with very specific, chunky marketing strategies.  And perhaps this is a good way to have one’s cake and eat it too. 

But I think it’s just as possible that Disney has hired a marketing guy at the very moment marketing is demonstrating an inability to deal with the fragmentation of the new marketplace (filmic and otherwise).  This marketing guy has all the old instincts, and he’s acting on them.  He is pursuing the fattest part of the market when most of these sweet spots are ephiphenomenal, simple aggregations of smaller pieces.  You can talk to them, but no one much cares for the blandness that results.  (And let’s be honest, there will come a time not so far from now that Hollywood burns through the children’s book and superheroes on which mass proposition now largely depend). 

Well, we shall see.  Mr. Aviv’s candidacy will be a very interesting test.

References

Crabtree. Sheigh.  2006. Aviv establishes first task: what is Dis?  The Hollywood Reporter.  July 20, 2006, p. 4.  (subscription required)  here.

Stanley, T.L.  2006.  Disney Elevates Marketing Exec Oren Aviv to Head Production.  July 20, 2006.  (subscription required) here.

Categories : Chunky marketing
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Jul
19

More on Chunky Marketing

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Hard to tell which of us is Darwin and which Wallace, but my argument outlined over the last couple of days on "chunky marketing" has found unexpected support from Natasha Walter of the Guardian. 

Here’s what she had to say after interviewing Chris Anderson on his "long tail" idea.

But what you are left with, if you’re convinced by this picture of a culture that is all top curve or long tail, is a nagging question about what is happening to what has been called the middle torso. A culture divided between the massive hit and the tiny niche may feel comfortable for retailers and producers of a certain sort, but not so good for others. Many writers do not just want to reach a tiny online community and yet will never follow the formulas that please a massive audience; many film-makers don’t want to go it alone with a digital camera and sell to the teenagers on MySpace, but also don’t want millions of dollars of computer-generated imagery and a first week opening on thousands of screens.

At the moment, there is space to work in this middle ground. There are, say, the distributors who support independent film-makers with a small theatrical release, and independent publishers who take on new writers and help bring them out of the niche without expecting them to be bestsellers. But just as the small independent bookshop is being squeezed both by supermarkets and online retailers, so we may find that if our culture becomes so dominated by the blockbuster on one hand and the long tail on the other, something precious is going to get squeezed out of the middle.

Hear hear.  Or is that, here here. 

References

Walter, Natasha.  2006.  Something is being squeezed out of the middle.  The Guardian. 
here.

Acknowledgments

Thanks to Paul Melton for spotting the Walter essay. 

Categories : Chunky marketing
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Depp_1 It is now clear that Pirates of the Caribbean: Dead Man’s Chest is a smash hit, and everyone connected to it is an absolute genius. (Bill Murray’s joke here: "I’d like to thank everyone connected to Lost in Translation, but so many people take credit for it now, I wouldn’t know where to begin.")

It’s worth remembering that the striking thing about the film, and the thing that most surely saved it from being fiber free, Nutrasweet pap, is the performance by Johnny Depp.  And this is worth remembering because Disney came close to canning his performance

[T]he eccentricity of Depp’s approach sent ripples of panic through Disney’s executive suites. Frantic phone calls were placed to Verbinski, Bruckheimer, and Depp’s agent: Why is he walking funny? Why is he talking like that? Is he gay? Is he drunk? And it wasn’t only the suits who were concerned: ”The first scene I did with Johnny, I was like, What the f— are you doing?” Knightley says. ”None of us knew if it was going to work.”  

Depp was not to be deterred. ”It was just fuel to go further,” he says. ”Not because I wanted to piss Disney off, but because I believed it was the right thing to do. Finally, I said, ‘Look, you hired me to do the gig. If you can’t trust me, you can fire me. But I can’t change it.’ It was a hard thing to say, but f— it.” (Rottenburg)

Whew!  Talk about dodging a bullet!  Imagine if the lead actor didn’t have clout or courage.  Imagine a director (Gore Verbinski) who was not prepared to retire to a life as a "goat cheese farmer."   Imagine if this was a bigger bet for Disney, and not a movie based on a ride from it’s theme park.  Depp might well have been deterred.  Disney might well have prevailed.  All of a sudden, it’s no longer an opening weekend of $132 million or a ten-day-take of $258 million.  "I can’t change it."  When was the last time these 4 words made a studio this much money?

Hollywood, one of the places culture and commerce combine spectacularly in our world, is having a hard time of it. 

1) costs are going up.  The Motion Picture Association of America says that it now costs $96 million dollars on average to make and market a film.  This is up nearly $20 million from 2001.

2) ticket sales are still flat, and hover at what they were 4 years ago.

3) DVD sales are beginning to slow, after years of double-digit growth.

The industry, once famous for its big spending ways, is changing.

1) new cost discipline is in effect at the studios, not least because they are now owned by large multinationals.

2) big stars are dropping their salaries.  Tom Cruise did for Mission Impossible 3

3) the studios are, in the opinion of Stephen Prough of Salem Partners, "absolutely less fun" to work at. 

4) There is even talk of a "death of the middle" strategy embraced in other markets.

Hollywood executives have also opened a debate about the proper size and composition of a studio’s film slate.  One theory is that studios should do away with mid-sized films–say, with budgets in the $50 range–and instead focus on the blockbusters, such as Pirates of the Caribbean and niche products.  (Chaffin)

The "death of the middle" strategy is straight forward.  It says, spend massively to guarantee hits at the top, and fund lots of little films to fill niches (and find sleepers) at the bottom.  The middling films, the DOM stategy says, are too small for marketing muscle and too big to connect to anyone.

But what are we assuming here?  We’re assuming that the block busters are manufacturable, that the studios can manage their way to sensational numbers.  Really?  It looks like Disney came this close to refusing the essential ingredient of this summer’s blockbuster.  (Is he drunk?  Is he gay?  Please.  It’s called acting.)  Were it not for Depp’s refusal to rework his foppish Jack, this block buster might well have been a middle weight, and no block buster at all.

I wonder if it isn’t time for Hollywood to get chunkier.  Maybe the real opportunities lie in the middle ground.  A chunky approach to marketing says go for the sweet spot, the place with money enough to hire real talent, and enough freedom to set them free.  (Freeish.)  There has to be a habitable space between the deeply eccentric, entirely self indulgent freedoms of the indie and the "fear of falling" rigidities that understandably beset the studio when spending $160 million.

Maybe the next move for Hollywood should be managers who can manage the middle.  I mean most anyone can spend their way out of risk…except when they can’t (which is now much of the time).  And just about anyone can max out their parent’s credit cards in the creation of the next great indie act of film school nicherie. 

More easily said than done.  Managing the middle, looking for chunky markets, this takes people who really know the interface between culture and commerce, people who can read consumer taste and preference, who can work a fragmented culture because they know that culture, AND bring the project in on time and budget.  It takes people who know their culture and their commerce.  I don’t doubt there are people in Hollywood who qualify as centaurs, but I’d be very surprised if these people were industry standard.

Hollywood’s problem is everyone’s problem.  Every packaged goods brand face the problem of the vanishing middle.  Every marketer must learn to speak to a turbulent marketplace.  One of these days, a business school or an industry association will rise to the occasion.  In the meantime, we’ll just have to hope that the actors will save us.  (And when you are relying on Johnny Depp to save you, well, God save you, too.)

References

Chaffin, Joshua.  2006.  Hollywood’s blockbuster budgets leave the chests bare.  Financial Times.  July 17, 2006.  [source for all data reproduced above in point form]

Rottenberg, Josh.  2006.  The Piracy Debate: the rough seas of the upcoming "Pirates of the Caribbean" films.  Entertainment Weekly.  July 07, 2006.  here

Note

Bill Murray quote approximate.

Post Script

Russell Davies offers this as one of several insights from his stay in Portland at Nike and Wieden + Kennedy. 

7. Brands that influence culture sell more

This feeling was always in the air. People were trying to build popular culture not piggy-back on it, trying to create new culture, not just repeat old ones. About the worst thing you could say about an idea was that it had ‘borrowed interest’. And it was palpably clear that this instinct led to more effective, more profitable brands. So I remember writing ‘brands that influence culture sell more’ in a creds deck and getting the highly prized Wieden nod of approval. That was a good moment. (Or at least I think I remember writing that, it seems to have turned up in other places too, so maybe I heard it somewhere first, perhaps through some sort of strange wormhole into the future.)

Davies, Russell.  2006.  Seven things I learned at Wieden and Kennedy.  here.

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Jul
17

Chunky culture: the next new thing?

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Kyra_sedgwick Michael Keaton will do a TV series called The Company about the CIA.

James Woods will do a show this fall called Shark about a prosecuting attorney.

Kyra Sedwick triumphed in The Closer, the highest ranking show on cable.

Holly Hunter is in negotiations to do a drama called Grace about an Oklahoma City detective.

What do these actors have in common?  They can carry TV and Hollywood projects but they’d rather steal them. 

Out of Sight (Steven Soderbergh, 1998) was a great picture and Keaton managed to steal it with 2 minutes of screen time.  "Ray Nicolette" is a deeply stupid FBI agent who likes to wear the FBI t-shirts they sell in tourist kiosks.  He is taunted by his girl friend’s father (Dennis Farina),

"Hey, Ray, when you’re working undercover do you ever wear a t-shirt that reads "undercover"?" 

Ray replies with a stare that is equidistant between complete incomprehension and complete hostility.   We the audience just can’t tell.  It’s the best bit of acting in a film filled with good acting. I think it’s fair to say that Jennifer Lopez and George Clooney have never been better than in Out of Sight.  Keaton appears almost as if remind us that, even at their best, they are film stars, not actors.

James Woods, as Dr. Harvey Mandrake, came precious close to stealing Any Given Sunday (Oliver Stone, 1999) with a bit part about a doctor compromised by the demands of professional football. 

Kyra Sedgwick stole cable with a show that debuted in the summer time. (!)

And my favorite example is Holly Hunter who steals the whole of Timecode (Mike Figgis, 2000) with about 30 seconds on one quarter of the screen. 

Funny, then, that all of them should have been be tapped for television. 

At first glance, it looks like a good trade.  They bring talent and celebrity to a cable proposition that is now robust enough to pay them decently and risk taking enough to give them room to do their thing dramatically. 

But I wonder whether this does not also suggest a trend in contemporary culture and commerce.  What we are looking at might be a shift from the stars to actors, from big propositions (beauty + charisma with just enough talent) to something more intense (talent with a capital T and whatever else the actor happens to bring along for the ride).  I think George Clooney is a good case in point here.  He has just enough talent to sustain his career as handsome George.  Holly Hunter is a formidable talent who happens to be good looking.  And it wouldn’t much matter if she weren’t.  (Every show stealer is a great actor.  That’s how they do it.)

You could call this long tail casting, but only if you wanted to obscure what is going on.  Cable is eating Network’s lunch precisely because it can go intensive (narrow but deep) while the Network continues to struggle to be extensive (wide but shallow).  And if that’s all that happened, we are indeed looking at a long tail proposition.

But this is something different.  This is talent finding a new way in, and it reverses an age old pattern.  In the old days, stars would come up big and, if they were smart about it, they would spend their rest of their careers trading their celebrity for credibility, taking more difficult roles in smaller productions.  We will have to watch Kyra Sedgwick’s career with interest.  She was never mass, but her part in The Closer suggests the possibility that she might someday become so.

By this reckoning, the mass market is not dead.  It is merely more capacious.  Some of its structural properties have changed, to be sure.  Those who want a chunk of this market can’t get it merely by going wide, by being witless, agreeable and non threatening.  This fragmented mass market demands that people bring talent, take risks and proceed intensively.  Only thus can they hope to break in.  But this is not about tiny markets connected to small producers (mostly) by electronically enabled channels. 

It is as if mass culture became a larger space, and as if got larger, the traditional model of stardom and production was forced now to change.  In fact, as I was reading the obits for Aaron Spelling, I couldn’t help wondering whether the producer of shows like Charlie’s Angels would flourish in the new world of television.  I think we can take for granted that The Closer would have offended Spelling’s vaunted instincts in just about every way.  But we would be wrong, we would be naive, to suppose that this is the beginning of a long tail market.  There is something installed in our culture between the old mass media and the new long tail "youtubes" of the world.  TV calls it cable.  We call it chunky. 

If this is true, it’s good news for TV.  The future is not youtube.com. It’s good news for advertising.  The future is consumer created content and word-of-mouth.  And it is, whew, good news for anthropology.  The future is not a perfect fragmentation of consumer taste and preference. 

This world will fill with evolutionary options.  Out of this long tail noise will come winners who take, well, if not "all," then great big chucks of the marketing place.  The chief difference is that they will have to start small, risk big and leverage real talent.  But some of them, just a few of them, will prove to be show stealers.  To win in this marketplace and culture, that’s what it will take.  Not Jessica Simpson but Kyra Sedgwick.  Not Heather Graham but Holly Hunter.  Not Rebecca Romajin (Pepper Dennis), but oh, I don’t know, someone who can really act. 

Call this the rise of a chunky culture, no longer mass, not yet, and not ever, long tail.  The future of contemporary culture and contemporary culture?  It belongs to the show stealers.  I am not sure Nietzsche ever got that 3 picture deal from Hollywood he deserved, but it was he, I think, who anticipate the new industry when he said, "good poets don’t borrow, they steal." 

When Michael Keaton, James Woods, Kyra Sedgwick and Holly Hunter come to the "waste land" of television, we are looking at the era of the scene stealer, not the arrival of a long tail market.  Cable is not going to fragment still further.  It is beginning to chunk.  It is expanding enough to attract big talent, and with these steal stealers in place it will expand even more. 

There are plenty more things to say about chucky culture and commerce.  But I will close with just three.  Chunky culture is big enough to fund real talent.  (Where are the incentives in long tail markets?)  Chunky culture is big enough to encourage real risk.  (Where are the incentives in long tail markets?)   Chunky culture is big enough to have real  gravitational effects on contemporary culture.  (Long tail markets are a recreation of the tower of babel.)  Things like Arrested Development, this was long tail.  It grew big enough to max out and, God willing, it will flourish in a more narrow medium. 

But the other plays on Cable, these are now big enough to get bigger, and as they do we move from long tail to chucky. 

References

Andreeva, Nellie.  2006.  Hunter finds good "Grace" in TNT pilot.  Hollywood Reporter East. July 10, 2006, p. 1.

Nordyke, Kimberley.  2006.  Keaton, Turner make for Good Company.  Hollywood Report East. July 10, 2006, p. 5. 

Comments (5)

Acela I am on the train to Philadelphia.  I believe God wants us to travel by train.  I mean, would he have invented trains otherwise?  I say no. 

Part of the charm of the trip is the security warning read over the intercom as we leave Penn station.  It reads something like, "if you see something, say something: a strange package, something that doesn’t look quite right, or, [and now I'm quoting precisely], somebody acting funny."

Actually, I am watching someone acting funny.  There are 4 guys in my line of sight who are acting …I guess "funny" captures it.  By the looks of their suits, ties, brief cases, and watches, they are 4 young princes of the capital markets.  Or they are McKinsey consultants, red of tooth and claw, the ones who rampage, well tailored holligans, through a corporation.  They take no prisoners, this lot.  They leave careers where they break them.  They got a train to catch.  I would guess they have degrees from Wharton, Columbia, HBS, or Yale.  No, not Yale.  (Yale should be so lucky to graduate guys as good as these.)  They are in their late 20s or early 30s and they are making a small fortune.  And this is just the financial.  The funds of self esteem are, evidentally, still greater. 

What’s funny about them?  They are quitely tormenting the steward.  Well, why not.  They’re bored.  He’s struggling.  Why not have a little fun? Pricks. 

This is class in America.  The distance between the steward and these guys is vast.  He may have made it through high school, a public one.  They went to private schools, likely, and enjoyed the best college educations money can buy. 

I am not saying that these guys are racists. I am not saying they are actively hostile or dangerous.  (This is good, because I am sitting in their line of sight.)   

Let’s give these kids their due.  They are entitled to think well of themselves. They were smart to begin with and they are now, thanks to Penn, formidable problem solving machines.  And they are the reason American corporations are so much better at capitalism than the competitors, including those from France and England.  These kids are the future because they own a piece of it. 

But, really, does this give them the right to torment Amtrak employees.  I don’t think so.

Jul
13

Ebay, I have seen your future

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Pips_book Ebay now squanders the brand as Microsoft did.  In the process, they are in the verge of surrendering share to Google, as Microsoft did.  Here follows a lesson in brand stewardship and consumer centricity. 

For several years, Microsoft owned my email system.  As a user of modest sophistication, I clung to the brand and its software, as if to a parent’s hand.  Microsoft and Outlook were my guardians in a strange land.  Ok, let’s be honest.  Microsoft didn’t just own my email system, they owned me.

But I migrated from Outlook, and I did so for precisely the reasons that Pip Coburn makes clear in his new book, The Change Function. (Conflict of interest declaration.  I am a "Change Fellow" at Coburn Ventures.  I don’t think this changes my attitude towards Pip’s book, but now you know.)

In The Change Function, Pip says that we adopt new and potentially strange innovations only when perceived benefits outweigh the perceived pain of adoption.  In Google’s case, this means I heard the siren call of gmail and I liked what I saw.  The "pull" was in place.  But I did not adopt, because the idea of switching email addresses and moving to an alien system really, really intimidated me. There was no "push" in place.  In Pip’s formula, the pain of adoption was greated than the benefits of adoption.

Happily, Google didn’t have to do anything to supply the "push."  It just had to wait for Microsoft to do nothing.  And that’s precisely what Microsoft did.  In the last several months of Outlook use, I must have received thousands of spam emails.  I was sometimes spending 15 minutes a day routing them out.  Spam was to prove an immense push. 

For some reason, Microsoft thought that spam was my problem.  How cavalier.  Apparently, the author and vendor of my email program was quite happy to expose me to daily difficulty.  Maybe Microsoft thought that spam was a third party opportunity they were obliged to leave to the likes of Symantec.  To which the answer is, of course, "so just buy them."  Certainly, there were work arounds to the spam problem, but these too were apparently my problem. 

Plainly, Microsoft is not a consumer centric organization.  A consumer centric organization would have said, "Good lord in heaven, we have exposed the consumer to misery.  Let’s fix it."  Instead they were sometimes mute on the problem and sometimes cavalier.  The outside chance, the last stand for brand credibility, was this: Microsoft wasn’t doing anything because nothing could be done. 

Enter, Google.  The first time I heard they were serious about spam control was the moment I began to move.  Apparently, Google is consumer centric.  They believe spam is a problem that belonged to them.  (I don’t want hear comments that say Google a "central server" advantage that Microsoft does not.  Microsoft was smart enough, rich enough and big enough to make or buy any number of solutions.  Someone surely ran a Google scenario and asked tough questions.  I guess no one ran the consumer centricity calculation or the Coburnian one.)

My shift was difficult but advantageous.  In Pip’s language, the pain of adoption was not anything like the benefit of adoption.  Or to put this in the language of the consumer: "Boy, it was hard to change. Boy, was it worth it!"

And as if to reward me for the move, Google gave me a "report spam" button with which to notify the world when spam does make it into my email basket.  I know it’s juvenile, but I can’t tell you how much pleasure it gives me to click this button and dispense that message from Lagos that promises the proceeds from an abandoned bank account.  Now I can fight what I was once helpless to prevent.  I have joined a smart mob of Google emailers so to take action against the mere mob of spammers.

The brand effect is not just the augmentation of brand meaning and consumer gratitude.  The move to Google email drove a cascade that took me away from the Microsoft suite.  The man who was a Microsoft villager (medieval vassal trading loyalty for protection in a hostile land) is now prepared even to consider installing a nonWindows operating system.  That means I moved from blind-brand-loyalty to "take it or leave it" indifference in less than a year.  The price of failing to be consumer centric can be astonishingly high.  A year ago, any marketing researcher would surely have said, "McCracken and the millions of consumers like him, they are yours for the duration.  They will buy Microsoft to their deathbeds.

So to Ebay.  It’s a slightly different problem but it manifests the same way.  Everyday, even with Google filters in place, I receive phish and faux emails from Ebay, insisting that my account needs reviewing, that my orders have been lost, that payment was not received, that my account will be suspended!  (Hmm, you don’t suppose that Google has a vested interest in letting these emails through, do you?)  Some of these email are fiendishly clever.  So much so that I never open anything from Ebay.  (The cat who jumps on a hot stove never jumps on a cold one.  I remain an unsophisticated user.) 

I still use Ebay, but I can’t help thinking, "do they not understand this is happening?  Are they being cavalier on this one? Do they somehow think that email and, by extension, the security of an Ebay transaction and relationship, is my problem?"  And the moment I heard that Google was creating a service called Check Out, I thought "thank heaven."  It is still in its infancy and it we will see if it connects buyers and sellers with Ebay’s acuity, but my guess is that it will enable the transaction as well as Ebay and manage somehow to extract the confusion and risk now in place.

You can say, oh, well, Ebay can’t control what spammers and phishers send out.  Really?  Do we know how much this company is worth?  This company had the resources to go after spammer and phishers with a ferocity that could have cut the number by 80%.  (And there are other solutions including a restricted communications airspace that would allow Ebay to say we will never send you another email through conventional channels.)  Would that have been worth an investment of tens of millions of dollars?  Of course, it would.  All Ebay is doing is protecting the brand.  All it is doing is serving the consumer.  All it’s doing is taking a leadership position in the digital universe and marketplace.  Isn’t that the corporation’s job.  Isn’t this the sort of thing should be able to expect from a graduate of the Harvard Business School and P&G?

Ebay and Microsoft got to enter the digital marketplace at a Cambrian juncture.  There was almost no competition and therefore massive brand building resources and opportunities.  (Coca-Cola had this opportunity in the early 20th century.  General Motors had it at mid century.)  Clearly, brand loyalty is the digital space is not enduring.  (Compare our attitudes to those of mid century when people often said they would never drive a car that was not a Chevrolet.) People can move relatively easy ,and as they become more sophisticated, and Pip’s pain of adoption diminishes, they will.  This means the "stickiest" thing about the digital brand proposition is the extent to which it understands and responds to the consumer.  Consumer centricity and brand value are inextricably linked. 

Yes, these brands, Microsoft and Ebay, are technologically driven.  But finally, it comes down to this: you can’t ignore the end user without paying for it, pal.

References

Coburn, Pip.  2006.  The Change Function.  New York: Portfolio.  [Order from Amazon here.]

Valiant Over at Passionate, Kathy Sierra suggests that some consumers now  give one another "The Nod."

Sit in a cafe with a Mac PowerBook, and chances are you’ll get The Nod–that acknowledging, approving, knowing, we’re-special look.  MINI owners give each other The Nod at intersections. Display Gnome on your ThinkPad and you’ll get The Nod. But run Windows on your Dell and you won’t. (Never confuse the "I feel your pain" look with The Nod.)

To give The Nod is to recognize and appreciate another person who "gets it", whatever it is.

Kathy tells us that the "nod" tells a consumer someone thinks he/she is smart, risk-taking, indie, or fun.

I guess this is better than the "nervous glance," when consumers scope out one another’s shoes or cars with fear or envy.  Happily, the competitive consumption of the 1950s is mostly dead. 

But I have to say "the nod" creeps me out.  I don’t want to be a co-conspirator in someone else’s act of self congratulation. 

I am pleased that you believe your choice of computer or car or browswer makes you look riskier or indie-er.  But leave me out of it. The fact that we share consumer choices, put that down to coincidence. The moment you start sending me the nod for my MINI is the moment I take it to the used-car lot and see if I can’t trade it in for a Nod-proof Valiant.  No, actually, a Valiant isn’t Nod-proof.  (Valiant’s are wonderfully expressive cars, aren’t they?  The one pictured above looks as if it’s on the verge of tears.  And can you blame it?  Mind you, it has clearly found a pretty good friend in the airstream.  And thus was a children’s story born.)  Make it a Camry.  The Camry is a triumph of nod-proofery, and I’d be damn proud to drive one.

Self-by-other congratulation, it’s an ugly thing.  I can see how it works in California.  But constructing community (or an affinity) out of a non verbal gesture at a traffic light, that has to be a Californian’s idea of a lasting social bond…not to mention as big a boost to the ego as a Californian is likely to get in the 2006 calendar year. 

Now, there is a third candidate for non-verbal gifting, and that’s the big laugh of sheer gratitude.  These are not calculated, these are not self congratulatory, they are involuntary acts of reciprocity, as in "you purchased something" so funny, interesting, clever, unexpected, or imaginative, I just have to laugh out loud.  In fact if I saw a Valiant in my little town in Connecticut, laughing out loud is precisely what I would do, an act of gratitude for an act of imagination.  (Any consumer choice that makes one doubt one’s senses is a very good consumer choice indeed, especially in this part of the world where many consumers appear to hope that will have anticipated your expectation to perfection.)

Let the typology building begin.  Call it the typology for non verbal gestures that approve and police the consumer society.  We have:

1) The Nod.  (Thank you, Kathy, I hope you take my comments in the spirit they were offered.)

2) The Nervous Glance

3) The Big Laugh of sheer gratitude

4) The Gaze (I went on about this awhile ago, as below)

Suggestions?

References

McCracken, Grant.  2005.  The Economics of the Gaze.  This Blog Sits at the…  August 24, 2004. here.

Sierra, Kathy.  2006.  The Nod.  Passionate.  July 7, 2006.  here

Hat tip to:

Tom Guarriello at the True Talk Blog here.

Jul
11

Cocreation or brand revenge

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Pirates_iI am in Pittsburgh.  No, not for the all-star game, but thanks for the thought. 

No, I am here to advise and consult.  But I was interested to learn that Pittsburgh Pirates fans, suffering an extraordinarily disappointing season, have taken to customizing their shirts.

These used to read "Pirates Fan."

Now they read "Irate Fan."

Once we turn over brands to the consumer, we must expect things like this.  And who’s to say it’s bad for the brand.  Better protest than repudiation. 

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New_york_ties_times_select Recently, the New York Times (NYT) engaged in product development that has quite marked implications for its brand.  It what we might call the "Times File debacle," the NYT violated reader trust, and, in the process, destroyed brand equity.

It was once possible to save an article from the electronic version of the NYT.  I must have saved 10 or 20 articles to "Times File" this way.  Yesterday, I discovered they were gone.  In the place of my Times File was an invitation to sign up for Times Select, at a cost of around $50 a year.

No one doubts that the NYT has to find a way to monitize its electronic play.  The Wall Street Journal did this early on, and it’s odd the NYT should still be struggling to catch up.  The Times creates substantial value for me, and, frankly, $50 looks like a bargain.   

But monitizing is one thing, and dumping "consumer created value" is another.  My 20 saved articles represented a tiny investment in time, attention, and choice.  (As I recall, one was on Kevin Smith and the 6 blogs that now distract him from his film making.  There is a "old media, new media transition" angle here that caught my attention.) 

But more than time, attention and choice is lost.  Intellectual opportunity was also destroyed.  How many potential ideas and understandings were contained here?  This is impossible to calculate. But I resent the the assumption on the part of the Times that this value was their’s to destroy.  These few articles represented an opportunity for pattern recognition.  Their loss represent an act of pattern decognition.  Pattern decognition?  From the Times? 

I suffer modestly.  The Times suffers massively.  They have just sent me a message.  They don’t care about my intellectual capital.  They presumed to call this, to make this, worthless. 

Um, I believe there is a passage in the new marketing handbook that says a brand wishes to invite the participation of the consumer, to encourage his or her cocreation of value, most of all, to respect the consumer as a creature with symmetrical claims to status and standing in the world. 

I am sure that this last condition is exceedingly difficult to grasp for an institution as magisterial as the Times, but too bad.  All of us live in a culture and a market place where new rules of status and standing apply.  Adjust or die.

What is the precise nature of the brand damage?  It is that I now have grounds to distrust the Times.  As John Deighton, my esteemed friend at the Harvard Business School, will tell us, trust is the first condition of brand meaning.  Squander this and the brand suffers damage to its very foundation.

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