Culture and Marketing

Change in Media, Change in Targets

It’s time to update the idiom. There are three things certain in life: death, taxes, and…branding. People are exposed to thousands of commercials in various mediums every day, including radio, television, social media and print. This adds up and evolves, resulting in the average individual adult or child being exposed to countless varied ad instances every year. But quantity is not the only thing that is changing. In the past, advertising was largely a one-way communication. Now, customers are taking control of the products, services, and the way they interface with them. In other words, audiences can volley back and participate in the millions of advertising interactions they experience every day. “It is shared communication, not only between the firm and customers but between actors in the marketplace.”

This dynamic personalization has advanced the industry beyond just marketing to personas, segments, and averages. We can be more specific in our design – we have the technology – and that has upped the bar. Today’s marketer should be able to 1) recognize every customer as an individual, delivering 1-1 experiences that feel one-of-a-kind in the hearts and minds of consumers, 2) know the discrete intention of every engagement, and 3) own every moment. Thus, the future of marketing lies in the battle for these micro-moments, shared in the space between the brand itself and the consumer’s response. Creating trust in this space, between brand and audience, is then vital. And the internet is influencing this interaction.

It is easy to see, then, that the moving target that is impactful advertising is only moving more quickly as the nature of advertising continues to evolve. Mass marketing isn’t dying, but it is definitely going through some natural selection. This denotes a change in what has long defined the consumer marketplace as fragmentation and niche groups come to define cultural patterns and, as such, hyper-targeted audiences. Increasingly sophisticated technology has enabled consumers to skip over these mass-market models, allowing people to quickly and easily search out specific products that speak to them. And data shows that this new self-curated buyer journey leads to consumers committing their dollars to brands that, across digital channels, give them content they care about1. In other words, people are choosing brands that help them define their individual identities and build their tribes over brands lacking a certain cultural trust or significance.

In this cultural resonance we find a huge opportunity for brands: people don’t hate advertising as much as they may claim. Now more than ever, brands are part of culture and identity – i.e. things consumers want to cultivate. 83% of people agree with the statement “Not all ads are bad, but I want to filter out the really obnoxious ones.”3  Translation: consumers don’t hate ads so much as they hate irrelevant ads, meaning ads that don’t speak to them functionally or emotionally. To endure now, successful brands must adopt a process that gives consumers a more relevant experience wherever and however they shop4. The experience will need to continuously optimize based on cues from the market and the target audiences2. This strategy will improve conversion rates, foster communities, and drive advocacy. Ultimately, brands with staying power will create a steady reciprocal relationship with their consumers, turning them into powerful ambassadors and fanatics.

So what do I mean by culture here? Culture is the sum total of shared values, ideas, beliefs, behaviors, and ideology of a group of people. You might say it is the glue that holds groups of people together and shapes their identity. Drawing on our extensive experience working in cultural influence, we tend to agree. When developing a campaign or marketing plan, other people tend to focus on benefits, features, and superficial aspects of the target audience. But, when we talk about a focus on “culture” we are talking about the deeper emotions, motivations, and associations people have with an activity, product, or service, many of which are subconscious. Culture is not a trend, though trends may impact it. Rather, culture is comprised of cognitive, social, and conceptual “frames” that people build upon. Think “pants”. Stylistically they change over time and if you make them, you better stay on top of the trends. But at a deeper cultural level we have an understanding of what pants are regardless of time. Understanding the deeper concept – what signals pants versus what makes bell-bottoms – and how it’s constructed gives you an incredible amount of power.

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Perhaps the most important piece to remember is that culture is a process. Culture is shared interactions, which means it is fluid. The reification of culture (regarding culture as a thing) leads to a notion that “it” is a thing that can act almost independently of human agency. But culture does not. Culture is subject to change and change can be controlled, or at least influenced, in any number of ways, including how we insert a brand into a person’s life. There are undercurrents and motifs that remain focal points through time, but they are always subject to restructuring. We are able to harness this cultural restructuring into a step-by-step analysis to approach, influence, and react to audiences.

First, cultural change is a selective process. Whenever cultures are presented with new ideas, they do not accept everything indiscriminately2. A marketing message or innovation is most likely to be diffused into a recipient culture if: (1) it is seen to be superior to what already exists; (2) it is consistent with existing cultural patterns; (3) it is easily understood in the context of their symbolic and functional constructs; (4) it is able to be tested on an experimental basis; and (5) its benefits are clearly visible.

Second, new ideas, objects, or techniques are usually reinterpreted and reworked so that they can be integrated more effectively into the total configuration of the recipient culture. In other words, people don’t simply consume marketing, they interpret and reinvent it.

Third, some cultural traits are more easily accepted than others. By and large, technological innovations are more likely to be borrowed than are social patterns or belief systems, largely because the usefulness of a particular technological trait can be recognized quickly. But technological advancement can only get you so far. For instance, by any reasonable measure, the US should have adopted the metric system by now. The thing preventing it is a lack of cultural connection. The same process holds true for brands.

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This cultural function means that the brand someone selects, that she is loyal to, is driven more by the deep emotional and cultural needs than by features and benefits. The sustainable brand, the brand that draws people to it again and again, reflects cultural truths. When you identify those deeper truths, you build a much deeper, more authentic connection both to that individual and to their “tribe”. From a strategic perspective, it provides you with more nuanced and adaptive creative, the ability to identify the right channels and platforms in which to market, and a long-term roadmap to evolve your communication as the brand grows. At a practical level, it means sustainable ROI and target audience ownership.

We believe that to be relevant and long-lasting a brand – one that sees return on innovation and investment – must operate like a member of culture alongside its consumers. A company must share out its core values and articulate WHY it exists. A brand must stand for something and drive people to participate in it, become part of it. People want to belong to something bigger than themselves.

 So, we know we must tap into a brand’s cultural depth with its audience. We need to build and recognize trust and grab a piece of it. And that’s how you get a share of culture. If we were to define it for a textbook, we’d say Share of Culture is the positive feelings, attitudes and beliefs shared between a brand and its audience. We believe the key to creating marketing campaigns that resonate today is to leverage your audience’s culture, seeing the bigger picture and building a reciprocal space. And, in the end, placing your audience’s culture at the center of marketing strategies creates sustainable ROI because culture has the power to nurture stronger, longer lasting and more engaged relationships with your audiences.

To be relevant and long-lasting, a brand must operate like a member of a culture – an equal participant. At the same time, it must own a piece of it. To rephrase, a company must share out its core values and articulate WHY it exists. And because people want to belong to something bigger than themselves9., when they make a purchase – whether it be a home, a new gaming system, or vacation package – they are actually using that product or service to add meaning to their lives. The meaning that has been created in the goods and services is not intrinsic to those goods and services. The meaning is created as the brand interacts with culture. It’s actually our culture that says a diamond has more value than a ruby, and gold has more value than silver, an Apple mobile device has more value than a Nokia, etc. If you come to marketing from the vantage point of added meaning, it suggests that choices consumers make have great symbolic connotations, both within their life and without. From that perspective, the marketer has a responsibility to do the right thing by those consumers – the brand’s peers within their share of culture – who are choosing a certain product in order to craft their identity. The trust and respect between brand and buyer has been established. The result of building this sort of reciprocal bond is that you move customers from being loyalists to being advocates by establishing a very strong sense of brand affinity through meaning.

 

 

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Trump, Morality, and Business Taking the High Road

Who would have thought that taking a stand against neo-nazis would spark an outcry in 2017 America? But it did. After repeated refusal from Donald Trump to outright condemn the beliefs of the White Nationalists (aka Nazis) who gathered in Charlottesville, Virginia, numerous CEOs who belonged to Trump’s Strategic and Policy Forum decided to disband the group.

In a statement from Jamie Dimon, Chase Chairman and CEO, he explained how Trump’s reaction to events do not fit with his values or the values of his company. As he stated, “There is no room for equivocation here: the evil on display by these perpetrators of hate should be condemned and has no place in a country that draws strength from our diversity and humanity.”

As someone working for an organization that has worked closely with Chase for more than a decade, I say, “Hell yes.” But it begs the question, why did so many companies and CEOs respond to Trumps call in the first place? CEOs like Elon Musk (who would eventually decide to stop advising the President after Trump backed out of the Paris Climate Accord) said he joined the Presidential Advisory Forum “…to provide feedback on issues that I think are important for our country and the world.” Being the voice of reason became a driving force for many of those who joined the effort.

The cynic might say it was just “good business?” After all, Trump won half the country’s vote. You don’t want to turn your back on half of America if you own a business. But it would seem now that “good business” is taking a backseat to “good.”

Only time will tell if this will affect their businesses. However, if one were to listen to the “loud” voices on social media, you would think it would be the latter. After 30 minutes of Chase posting Jamie Dimon’s statement on Facebook, 80% of comments were negative against Jamie Dimon and Chase.  That’s right, 80%. But the “like” response tells a different story from the comments. 95% of the clicks were likes and loves. Only 5% hate.

This is the world that CEOs are facing today. Ambiguity is the norm. And what should be a simple decision has become more complicated for business owners. Some businesses, like Nordstrom, who took hardline stances against the Alt Right from the beginning, saw increases in sales. However, sites like grabyourwallet.org who list companies who they believe you should boycott due to their anti-trump views are surprisingly popular. In February of 2017, this site had more than one million visitors.

So, you would think what Jamie Dimon and other business leaders did today would be easy. It was not. It was brave. It was just. And it could very well affect their business in the near future. The great thing is that ultimately they didn’t care. The hope is that, in the long run, choosing to support all people will lead to more customers choosing to do business with you.

 

 

The Rise of eSports

Since the advent and growth of eSports giants like Dota 2 and League of Legends, the gaming community has called for mainstream recognition regarding legitimacy. Take Colin Cowherd’s 2015 rant against esports for example. There are undeniable similarities between professional gaming and conventional sports, but the arguments have generally been ineffective in dispelling traditional beliefs formed by the collective generations of sports fans prior. While it is easy to dismiss playing video games as anything resembling an athletic endeavor, it is more complex than just noting the relative lack of physicality and declaring  as non-sports.

At their very essence,  are video games played in a competitive environment. Sometimes the games can be played one-on-one, other times, teams will square off against each other. But the key point in all of this is that  are competitive events. They are all about opposing players or teams doing battle in a real-time competition.

What’s In A Name? The traditional definition of professional sport is: all forms of competitive physical activity which, through organized participation, aim to provide entertainment to spectators and provide an income for the athletes, who in turn devote time training to increase their skills and experience to modern levels of achievement. But physicality alone cannot be the mark by which we measure “sport”. After all, look at poker. Poker is frequently broadcast on ESPN and other networks. This is equally true for chess and the National Spelling Bee. Is there anything remotely physical about playing poker? Or chess? Or a spelling bee? No.

And yet, all of these events are considered sporting events by probably the most recognizable sports network on the planet. Furthermore, players of  employ a strategies that play to their strengths while exploiting the weaknesses of their opponents. If the game being played is a team-based game, then teamwork is essential. Like any other athlete, players have tremendous reflexes, dexterity, and problem-solving skills. So, what exactly accounts for how we define “sports” and what does it mean for marketers?

The Conceptual Breakdown. Judging another culture solely by the values and standards of one’s own culture is termed ethnocentrism. People born into or surrounded by a particular culture begin absorbing its values and behaviors and build a worldview centered around these principles as the norm. Within the context of , this concept explains the psychology behind a lot of mainstream dismissal. Quite simply  don’t fit easily into our cultural definition of what sports should be. We do the same thing with other cultural categories all the time. For example, people in the U.S. struggle to classify crickets as food even though they are healthy, tasty, and plentiful. So, the struggle, whether it’s crickets or esports, is a reflection of cultural norms.

While ethnocentrism lends to maintaining the cultural status quo, generational gap is a concept referring to the differences between people of younger generations and their elders. It is the conflict between these groups which has catalyzed a lot of recent cultural change. This allows for members of the younger generation to form their own identities and cultures outside of older and mainstream influences. This is important to the development of  because despite its young age, its rapid growth foreshadows a change in the mainstream attitude towards it. The younger generation is growing up participating in and watching , thus making them part of their cultural norm. Within the next five years, there will be enough members in the community to challenge the mainstream dismissal of  and even gain the respect of the older generation regarding its legitimacy. And that should have everyone involved in marketing thinking.

Going Mainstream. Regardless of how you view , they are growing in popularity every year by leaps and bounds. Esports are on the verge of breaking out of their niche communities into mainstream focus. According to Newzoo, a company specializing in esports analytics, it’s estimated that the global esports economy will grow by 41% by the end of this year to $696 million and reach $1.49 billion by 2020. Keep in mind that includes more than the game itself, it includes media rights, advertising, sponsorships, merchandising and ticket sale. Like any other sport, it means reach extends well beyond the game.

The numbers speak for themselves, but also consider this: The renowned IMG Academy, an elite boarding school and training program in Florida geared for athletes in basketball, football, and other traditional sports, recently added an esports training program that includes physical, mental, and nutritional aspects. In other words, one of the most successful and prestigious sports-focused schools in the country believes so much in the future of esports that they have developed a training program around it. The outcome of generational gap is something IMG has identified and they are betting on significant changes in how we think of sports as a society.

Legitimacy also continues to be added as traditional sports team owners such as New England Patriots owner Robert Kraft and the organization that runs the New York Mets, Sterling Equities, have begun to make multi-million dollar investments in esports leagues. Cities like Washington D.C. have even outfitted their professional basketball arenas for live esports taking a well-calculated gamble that esports are here to stay.

That growth and investment around esports has started catching the eye of big-name brands including Arby’s, Coca-Cola, Audi, and Gillette to name a few. That’s because they see an opportunity to reach a demographic sweet spot, namely males between the ages of 21 to 35. They have cash, they’ve grown up gaming, and they are increasingly hard to reach via traditional advertising. Newzoo estimates the current global  audience at 385 million people, including 191 million enthusiasts and 194 million occasional viewers.

It’s estimated that the global eSports economy will grow by 41% by the end of this year to $696 million and reach $1.49 billion by 2020. Keep in mind that includes more than the game itself, it includes media rights, advertising, sponsorships, merchandising and ticket sale. Like any other sport, it means reach extends well beyond the game.

The numbers speak for themselves, but also consider this: The renowned IMG Academy, an elite boarding school and training program in Florida geared for athletes in basketball, football, and other traditional sports, recently added an esports training program that includes physical, mental, and nutritional aspects. In other words, one of the most successful and prestigious sports-focused schools in the country believes so much in the future of esports that they have developed a training program around it. The outcome of generational gap is something IMG has identified and they are betting on significant changes in how we think of sports as a society.

Spending by eSports still falls decidedly short of traditional sports. Enthusiasts will spend an average of $3.64 per person following the sport this year, according to Newzoo. Compared against basketball, on which fans spend an average of $15 each, and the short-term gains aren’t there for many brands. But like all things with esports, the numbers don’t tell the whole story. One reason for the discrepancy is that esports content is largely available for free and the money spent on merchandise remains relatively small. But spending is rising and expected to reach $5.20 per fan by 2020. Another reason is that eSports are drawing a younger crowd with less disposable income – for now. And this is where thinking about the long game becomes important. Building brand affinity and share of culture means building connections that last a lifetime. The earlier you bring a population into the fold, the sooner you become essential to the deeper cultural conversation. You aren’t reacting, you’re creating.

In the end, it doesn’t matter if eSports are seen as sports. People in the industry can identify similarities and use conventional sports as an example to adapt and grow the eSports culture. Growth in target audience involvement is currently more important than acceptance of members outside the base. And for brands hoping to remain relevant, having a presence in the eSports environment is extremely important.

 

 

Story, Development, and Design

Storytelling is not simply narrative. It is an opportunity to communicate values in a way that is resonant and memorable, allowing the people taking it in to position themselves in the story, see its relevance to their current situation, and then play forward a narrative about their own role in the story of now. It’s a way of uncovering the complexities of a person’s world and designing within that context.

 

How does this happen? It happens through stories in which a human protagonist is presented with an unknown and has to make a choice. At this moment of choice, the listener feels the tension of what might go right and wrong, projects herself into that situation and, in so doing, experiences the values with which the protagonist wrestles.

 

So how does it relate to development and design? Story art and craft is one of the best and oldest ways to engage an audience. We approach every project, regardless of its size or scope, from this perspective. Not just story-first, but structure first. Just like screenwriters do or authors do. There are, of course, countless books on story art and craft, typically for writers, filmmakers, game designers and artists, but they’re rarely, if ever, written for the people who build websites, software, tools, services, etc. that are not necessarily art or entertainment.

 

Designers, product managers, developers, content strategists, they can all benefit from taking on a storytelling approach in the process of creation. Take for example the use of experience maps. The maps try to represent an actual example of how a person (or persona) went through and did something they wanted to do. The maps are generally chronological, moving forward through the hours of the persona’s actions one stage at a time. The phrase “experience map” came about because we tend to want to create tools most relevant to the job we’re assigned, but in practice we need to be agnostic of whether the persona is using digital tools or not, or a combination to tools. The map represents the journey a person takes from the idea of accomplishing something to having accomplished that thing in the end. We want to see how it all hangs together from the persona’s perspective.

 

There can be as many experience/journey maps for a particular persona as there are deviations in the way they do that thing. For example, if a persona was taking a commercial flight, there might be different maps for a business-related flight than a leisure-oriented flight. There might be different maps based on whether it’s a last-minute or urgent flight. There might be different maps for long versus short flights, flights where the persona has to get work done before landing, flights where the persona is scared of flying, etc. The relevance is that the mental model represents a set of states of mind (mental spaces) that a person might pop into and out of during this journey toward accomplishing a goal. The states of mind might proceed in a nice linear fashion. Or they might represent a more cyclical approach, where the person revisits a previous state of mind again to re-evaluate something, to continue something, or to address something new that has come up. And therein lies the power of storytelling. We are designing with the notion that the goal and the steps to achieving it are front and center. Taking this approach not only allows for better design, it ensures that the things we construct are tied into the broader ecosystem in which people operate.

AI, Advertising, and Culture

In an ever-increasingly connected world, artificial intelligence is beginning to find its way into every aspect of our lives. We are “on” 24/7and we rely more and more on our  devices, particularly our mobile devices, to help us make decisions. That rapid increase in computing power has done more than help the user. It has equipped companies with an unprecedented capacity to automate processes that previously required hours, days, and weeks of human effort. AI has allowed companies to target, adjust, and adapt at an unimaginable pace. In the same way that Siri acts as a personal assistant for its users, marketing companies are now tapping into AI to act as a personal assistant in the creation of highly effective marketing campaigns.

Currently, agencies (and their clients) use AI to sort Machine-Learning-AI-in-Finance-11-04-2016-A-1200x1200.jpg
through assets to determine and/or refine the target audience, to gather data about how to best position a brand in various contexts, and to create varied advertisements intended for a wide variety of mediums, including everything from billboards to social media. The final piece is still largely in its infancy, but will no doubt continue to grow and evolve as AI become faster and smarter. Today, the goal of AI in advertising is to optimize campaigns by placing ads in front of the right customer at the right time. As technologies evolve, advertisers will be able to limit their ads on the basis of a huge array of parameters, most of which we’re all familiar with. Targeting an individual will be based on hundreds of parameters and actions, all quantified and measure in the blink of an eye. And creative (and its placement) will adapt in near real-time. In other words, they’ll be able to micro-target at a faster pace than we can imagine.

All of that makes sense, but humans are more than individuals, we are part of broader cultural systems, which means context and cultural cues matter. Yes, each customer is unique and therefore each customer journey is unique. However, there are broader social, symbolic, and cultural forces that guide our behavior depending on the situation at hand. So, the question is, can AI account for those cultural patterns and processes?

Considering the rapid developments in machine and deep learning, these systems will become increasingly capable of teaching themselves to make more precise and effective decisions based on a broader set of inputs. Ultimately this means that for AI to be truly move beyond transactional relevance, it will need to have a more balanced approach, which is to have a robust understanding of people’s aspirations, interactions with each other, and social connections. What are they trying to get done, what are the barriers to that, how do they create a sense of belonging, etc.?

We create culture, interact with it, are affected by it, and can even be destroyed by it. Culture applies its own logic, has a memory, endures after its makers are gone, can be repurposed in supple ways, and can induce action. Because culture can do things we cannot do as individuals, like fostering collective action or making life easier by providing unspoken assumptions on which we can base our lives, AI will need to evolve to do more than react to clicks.

 

 

Story, Development, and Design

Storytelling is not simply narrative. It is an opportunity to communicate values in a way that is resonant and memorable, allowing the people taking it in to position themselves in the story, see its relevance to their current situation, and then play forward a narrative about their own role in the story of now. It’s a way of uncovering the complexities of a person’s world and designing within that context.

How does this happen? It happens through stories in which a human protagonist is presented with an unknown and has to make a choice. At this moment of choice, the listener feels the tension of what might go right and wrong, projects herself into that situation and, in so doing, experiences the values with which the protagonist wrestles. So how does it relate to development and design?

Story art and craft is one of the best and oldest ways to engage an audience. We approach every project, regardless of its size or scope, from this perspective. Not just story-first, but structure first. Just like screenwriters do or authors do. There are, of course, countless books on story art and craft, typically for writers, filmmakers, game designers and artists, but they’re rarely, if ever, written for the people who build websites, software, tools, services, etc. that are not necessarily art or entertainment.

Designers, product managers, developers, content strategists, they can all benefit from taking on a storytelling approach in the process of creation. Take for example the use of experience maps. The maps try to represent an actual example of how a person (or persona) went through and did something they wanted to do. The maps are generally chronological, moving forward through the hours of the persona’s actions one stage at a time. The phrase “experience map” came about because we tend to want to create tools most relevant to the job we’re assigned, but in practice we need to be agnostic of whether the persona is using digital tools or not, or a combination to tools. The map represents the journey a person takes from the idea of accomplishing something to having accomplished that thing in the end. We want to see how it all hangs together from the persona’s perspective.

There can be as many experience/journey maps for a particular persona as there are deviations in the way they do that thing. For example, if a persona was taking a commercial flight, there might be different maps for a business-related flight than a leisure-oriented flight. There might be different maps based on whether it’s a last-minute or urgent flight. There might be different maps for long versus short flights, flights where the persona has to get work done before landing, flights where the persona is scared of flying, etc. The relevance is that the mental model represents a set of states of mind (mental spaces) that a person might pop into and out of during this journey toward accomplishing a goal. The states of mind might proceed in a nice linear fashion. Or they might represent a more cyclical approach, where the person revisits a previous state of mind again to re-evaluate something, to continue something, or to address something new that has come up. And therein lies the power of storytelling. We are designing with the notion that the goal and the steps to achieving it are front and center. Taking this approach not only allows for better design, it ensures that the things we construct are tied into the broader ecosystem in which people operate.

 

Brands, Ads, and Culture

The old advertising model advocated the creation of an external brand image to influence consumers. It talked about benefits, it talked about the company, it promised to give you sex appeal. Those times are long past. This is partly due to the sheer number of channels in which people interact, but we believe there is a deeper reason. And that deeper reason is that successful brands both reflect and transform culture. In other words, talking about what you do is no longer enough. To compete in today’s landscape, you have to convey why you exist and connect it to how people experience their world.

Today we’re seeing that certain issues which could be considered secondary to a brand are suddenly primary. People are not just choosing the best, the sexiest, or the cheapest. They’re choosing brands that have meaning. Their concept of nature, of self, of society takes center stage. And this is where brands taking on a new and intriguing role.

So, what role does brand play in this landscape? The simple answer is that brands become symbols for crafting identity. They introduce, reflect, and influence meaning. The most resonant brands are creating value not just by the products or services they represent, but by the symbolic power they impart.

We believe that to be relevant and long-lasting, a brand must operate like a member of a culture. A company must share out its core values and articulate WHY it exists. A brand must stand for something and drive people to participate in it, become part of it. People want to belong to something bigger than themselves. People need to be part of a tribe.