Start Up Blog

Being friends with breakfast cereal is over

Posted in entrepreneurship by Steve Sammartino on February 18, 2013

Attracting and serving fans has been a past time of brands for the past few years on Facebook. To the point where the accumulation itself became the objective. And while I keep looking for the cracks to appear in Facebook it seems to be able to continue to grow despite its huge size. Maybe the barriers to exit the service are too high for consumers to leave? Maybe the FOMO and connectedness matters too much? But one thing I am sure of is how I feel about it personally, and from a marketing perspective.

It made sense at first: After the 50 years of the top down TV industrial complex – a period when we got told and sold, it was novel to have a direct connection with the brands. To be able to talk to the big brands in town felt good. For once our opinion was more than a letter or ‘non caring’ customer service 1800 agent. I mean they had to care, it was all on display for everyone to see. A poor response from any brand would result in a digital lynch mob attack. Finally we had the respect we deserved as the supporters of the brands. It was the connection we always wanted. It seemed to make sense for both parties. So we all connected in every way we could – and filled our digital dance card.

Then we discovered we didn’t have much in common: Both us and the brands struggled with our new found direct connection, our co-operative digital love affair. We’d read each others stuff, try and be loyal to each other and support the give and take element in this new world. We even designed new products together, made advertisements for each other and really embraced the new tools we were afforded. But it got kinda boring. I mean how many conversations can we have about breakfast cereal, tomato sauce and canned tuna? So the brands took their lessons and got wise. They realised that they had to live a layer outside of what they sold in order to create value beyond what they actually sold. They realised they had become a resource and knowledge bank in related realms to thrive in a social world. So cereal became about diet and health. Frozen meals became about a life well lived and what’s on in the city and dish washing liquid became about tricks and tips around the house. The campaigns and related brand pages sprouted like mushrooms And all this worked out pretty well…..for a while.

Until it became a spam fest: At first, we got useful information and respected and rewarded brands in the process. So brands did what brands do. More of what works, and copied those who did it first and best. The great likenomics battle of 2010 and beyond…. Until everyone’s feed was so full of junk – it became like the letter box we have no joy in opening – A letter box just filled with flyers, bills and credit card offers. The dance floor wss too full, the music was too loud. In a social media marketing sense it is the equivalent of 3am and we all just want to get some sleep already. We are over it. I don’t think I am exaggerating here, it is probably how most of us feel right now. And I haven’t even touched on all the people we said ‘yes’ to on facebook, who we haven’t seen since grade school. Like I said, it was interesting and novel at the start, but it is very difficult to care for the babies of someone you have seen in decades.

So now I’m done: Yes, there are some brands I love. Some whose products and services really matter to me. But it is certain that none of these brands ever find their way into my shopping trolly, are my finance provider or power my home. Yes, non of them are boring products from the industrial era. The only brands I play with and want to converse with are those I spend my spare time with. That’s my current definition of where I draw the line on being ‘friends’ with a corporation. And I really think it’s over for most brands trying to make their way in the social sphere – even though the numbers and analysis on brand engagement on social forums probably don’t show it yet.

Yes, brands need social: It is foolish to think that brands shouldn’t be in social media, or use the tools. It is the first place we’ll go to find them – their facebook page, or find their twitter handle. And you can be certain we’ll want an answer within seconds. It is the new call centre and probably alot of other things as well. What it isn’t, and wont ever be, is part of peoples social life. I’m betting people will gravitate back to saving that for other humans.

It’s in our make up: There only so many relationships we can have in life. Whether they are people or personified brands, we are genetically programmed to only be able to manage so many interactions. Dunbars number is the simplest way to explain this phenomenon. It’s a basic safety mechanism that ensures stability and safety, and it’s what will drive us back to a limited number of social interactions (physical & virtual).

Brands need to know where they belong: The key element to all this is knowing where we belong in peoples lives. I’m far more likely to interact with a brand that I invest my spare time with. The brands that play in my passion space. The other brands I am happy to purchase, need to understand that they are associates, micro interactions, whom I do not have time for or want dealings with outside of what they thing they actually deliver.

It’s time everyone (brands & people) realised where they belong, and took a human approach to our connections. If everyone tries to maximise social connections simply because the gates have been opened, we’ll end up with closed doors and reduced potential for trust with the connections we actually want to have.

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Instagram is my new twitter

Posted in entrepreneurship by Steve Sammartino on December 12, 2011

Lately I’ve found myself checking my instagram feed more often than my twitter feed. I didn’t realise it at first. But I noticed it only when a few of my twitter friends commented on my lack of tweeting. Clearly I’m still using both, but increasingly instagram is what I give my small doses of available attention to. I remember the time when this happened to facebook, the time when I slowly started coming back to facebook less often, and starting giving my attention to twitter. And it is happening all over again for me.

It really does feel like there are only a few channels I can invest in at one time. Maybe it is Dunbar’s number is at work again?

If I had to understand why this is happening I’d just put it down to noise. When there are a lot of voices shouting at once, it is very difficult to hear what anyone is saying – the conversation is replaced with a hum of city noise, interspersed with the occasional siren or loud car horn. Instagram feels more intimate at the moment. It feels like twitter did when I first got there. I have so few people in my feed I can see everything. A few crew who have organically organised themselves to share some of their life. I don’t feel like I’m missing out on anything, and it feels like I have a greater sense of control that my other feeds. Sure, I have to take a photo of all my thoughts – but most thoughts we have can be augmented with a pic quite easily. In addition, this need for a picture reduces the amount of banal posts I see in my feed.

Increasingly I am convinced of one thing – as soon as ‘everyone’ arrives at a party, it’s time to find somewhere more interesting. And what this means for entrepreneurs, is that if your party is cool enough, people will eventually seek you out.

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The web is the people

Posted in entrepreneurship by Steve Sammartino on August 23, 2011

The web has changed a lot since the early 1990′s. if we think back to the dominant behaviour in 10 year blocks it tells us a clear story about how the web is being ‘organised around the people’. Which means that the people are certainly not organising themselves around the technology. It sounds obvious, but it’s worth remembering as we embark on any business project.

the 1990′s – the web was all about browsing. Finding places to go. Websites – the WWW era.

the 2000′s – the web was all about search. The Google god, SEO and ensuring we had page 1.

the 2010′s – the web (so far) is becoming more human. Social interaction & guidance. It is segmenting, grouping & geolocating.

And we can see this in the evidence we find in how the web is being trafficked. According Hitwise web traffic to portals is down -21%, traffic for web search is flat and traffic to social forums is 52% up. Just like life, people don’t want to leave their stream if they can help it. We’d rather stay with the ‘life juice’ that our human relationships provide. Another simple example is what is happening to brands in social forums. Most brands have 10 times the the Facebook fans than they have in monthly visits to the home portal. The best example is Coke, which currently has 33.8 million fans versus 270k visits to its home page per month.

I guess one thing has never changed in business, and that is the best place to take our brand, is where the people already are.

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My Google Plus Problem

Posted in entrepreneurship by Steve Sammartino on July 26, 2011

Like most people I recently joined Google plus. I went in and set up my account. I was reasonably impressed and it looked quite cool. It had a couple of nice ideas, including the circles of friends concept of segmenting conversations. After I set up the account, it has been on my list of things to do. That is, to go into it, have a play around, get used to the system and better understand it.

A few weeks later I still haven’t done it.

The interesting thing is that during this time I have still engaged with the social networks I already use. Including this blog and my twitter account. Turns out I still have time for social networks, just not that one. The only reason I will use Google plus is because I need to know about it, not because I need it. The fact that I need to invest time to ‘learn how to navigate and use it’,  is also sub optimal.

If everyone ends up loving Google plus, I’m sure I’ll get on board. But my Google Plus problem is that currently I don’t have a social networking problem.

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60 seconds on the web

Posted in entrepreneurship by Steve Sammartino on June 16, 2011

The world moves fast. When we we’re unconnected the speed of change went unnoticed. Now that we all have digital footprints, we can track all that happens. This amazing and statistically rich infographic is solid reminder of the world we live in. It’s also very cool that most of these business are startups that aren’t even teenagers yet. I’ve pulled out the numbers and got the pic below.

60 seconds on the web:

  • 12,000+ new ads posted on Craigslist
  • 370,000+ minutes of voice calls on Skype
  • 98,000+ tweets
  • 320+ new twitter accounts
  • 100+ new Linkedin accounts
  • 6,600+ photos uploaded to Flickr
  • 50+ wordpress CMS downloads & 125+ plugins
  • 695,000 facebook status updates, 80,000 wall posts and 510,040 comments
  • 1,700 firefox downloads
  • 694,445 google searches
  • 168 million emails sent (of which 92% is spam)
  • 60+ new blogs & 1500+ new blog posts
  • 70+ new domains are registered
  • 600+ new Youtube videos are uploaded. 25+ hours in duration
  • 150+ questions are asked in Question forums
  • 13,000+ iPhone apps are downloaded
  • 20,000 new posts on Tumblr.
  • I new definition added to Urban Dictionary 
  • 1,600+ reads on Scribd.

And here is what it looks like:

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The human movement, movement

Posted in entrepreneurship by Steve Sammartino on May 27, 2011

I was really impressed by how some of the smarter Skiing resort operators are using GEO-locating to enable a deep interaction with their customers. What some of the resorts have done is used their new electronic ski lift tagging systems as a social engagement tool. Skiers can register on-line via the resorts facebook page so they can compare how many kilometers, ski runs, hours they do on the mountain for the day, week season and compete amongst friends. It’s even got a nice gaming element to it. It’s a nice iteration taking ideas from the likes of run keeper. You can read more here about what ski resorts are doing to tech-up.

The thing that is clear to me is that there is a human movement, movement. It’s so much more than companies being able to track what people are doing, it’s actually about companies creating forums where we can actually track ourselves. So we can know more about ourselves and change the way we move and interact with others and personally. It takes away the privacy concerns, and moves us into a space where we co-opt information sharing for mutual benefit.

The question entreprneurs and marketers should be thinking about is, how can we help our people track their movement to get more out of when they move. It’s only just the start.

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2 horse race

Posted in entrepreneurship by Steve Sammartino on May 10, 2011

If you haven’t already read the 22 Laws of marketing – then you should. It’s a short book which really should be called the 22 laws on entrepreneurship. It seems that most of the laws are true on a category scale – the type of scale that startups with big dreams should pay attention two. recently I’ve been reminded of the law 8: The law of duality.

The Law of Duality says that “in the long run, every market becomes a two-horse race.”

The most recent example of this is Twitter and Facebook. it seems as though they’ve won the social web race. Every brand or advertisement is now tagged with ‘find us on Twitter & Facebook’. We have to look pretty hard to find any of the other 400+ social networking sites. It seems the Law of duality is still true almost 2 years after it was written. It seems that certain power laws of dominance still exist, even though we all like to believe the market has fragmented and opened up for everyone….

The truth is there is only so much space in the mind. We can’t carry the baggage of too many ideas with us. So we simplify by limiting what we participate in. There’s lots new world industry examples of the law of duality.

Social: Facebook  & Twitter

Search: Google & Bing

Mobile: iPhone & Android

Computers: PC & Mac

The question for internet entrepreneurs, is which new categories are still to get their number 2 player. That is where the opportunity lies.

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10 years in Tech

Posted in entrepreneurship by Steve Sammartino on April 23, 2011

A short review of some of the changes in technology in the past 10 years. Who has arrived on the seen, what’s different and new and how Moore’s law is still rapidly changing the world. Enjoy!

10 years in Tech
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Websites & The Network Effect

Posted in entrepreneurship by Steve Sammartino on April 18, 2011

I took this piece of copy directly from the 37 Signals blog. When it comes to websites, it’s what often the one thing we really need to break through. I also think it is why ‘free’ on the web just wont go away. It’s something web startups just can’t ignore.

The Network Effect: The network effect occurs when the value of a particular good or service increases for both new and existing users as more people use that good or service. It can also occur when other firms design products that compliment an existing product, thereby enhancing that product’s value. For example, the fact that there are literally millions of people using eBay is the thing that both makes eBay’s service incredibly valuable and makes it all but impossible for another company to duplicate its service.

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2 minutes of Screen Culture

Posted in entrepreneurship by Steve Sammartino on April 14, 2011

Our lives are increasingly being influenced by what I like to call ‘Screen Culture’. Which I posted a piece on here. I thought it would be worth showing the idea in action – hence the video I made below. Many of the statistics to support the concept were garnered through ‘Eye on Australia‘ which is an annual Grey Advertising study on consumer sentiment. The video explores the impact screens are having on our lives in the geographically specific & connected world. Enjoy!

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