2 horse race

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

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[gigya width=”425″ height=”355″ src=”http://static.slidesharecdn.com/swf/ssplayer2.swf?doc=10yearsintechss-110420214017-phpapp01&stripped_title=10-years-in-tech-7691089&userName=sammartino” quality=”high” flashvars=”gig_lt=1303547808162&gig_pt=1303548077935&gig_g=1&gig_n=wordpress” wmode=”tranparent” allowfullscreen=”true” ]
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Websites & The Network Effect

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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Good service? Prove it

Yesterday I went to a well known cafe in Melbourne for breakfast. Yes, it had a amazing the decor of a restored warehouse and exotic free range egg combinations, but that wasn’t what impressed me. It was the way they served their ‘non-customers’.

By the time we where half way through our second java a line had started to build for people waiting for a table, which is pretty rare in a cafe centric city like Melbourne. Up until that time the thriving restaurant still had amazingly quick service. But the service I was most impressed with was the service they gave those who weren’t even customers. People waiting patiently outside were treated to complimentary cafe lattes and flat whites. I’m sure they were surprised and delighted at the good will gesture. The tone of the staff there also told me that they gave them coffee because they were genuinely sorry they couldn’t seat them immediately. They meant it, and it wasn’t a promotional ploy. Something we’d never see from a chains store or large corporate. They’d be more concerned with wooing ‘non-customers’ that rewarding their ‘sure bets’. I say they’ve got it back to front.

The reality of the complimentary coffee is that it sent out a good vibe, and cost very little to do. And the benefits? Well I’m already blogging about it and put it on my twitter stream which goes to many thousands. I’d also say that rewarding those you’ve already got, is a far better investment than investing in those who’ve never helped your business. Something all startups should take note of.

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Car smash marketing – Rebecca Black

I’m not about to make any comment on the song Friday, or about Rebecca Black. She seems like a nice enough kid having a crack at the music industry.

It is interesting how anything has a chance in a zero cost media world. Sure, not everything will cut through, but in 1991 Rebecca didn’t stand a chance. She had no where to put her song (Youtube), nowhere to sell it (iTunes) and no one to spread it (Twitter / Facebook ). The invention of all this infrastructure made it possible. The thing that is different about the infrastructure versus 20 years ago is that cost of entry has been removed. Extremely good and bad start in the same place. And occasionally something unusual makes it through – so long as it is extreme in nature. No-one has placed multi-million dollar media bets on selling Rebecca’s song, so the cost of promotion has been reduced to taking 3.48 minutes from our day, or typing 140 characters. It’s like a car smash, we can’t help but slow down and take a look.

The question it makes me wonder, is if there is a valid strategy in being the ‘worst’? And if there is, how do we make sure we qualify? And if we qualify, how do we then transform?

Love or or hate her, right now Rebecca has 100% share of voice.What that turns into is entirely up to her.

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A Tiny Twist

Today I sent this tweet which got quite a bit of comment:

There were over 400 video sharing websites when Youtube launched. Often it’s smarter to do it better, than build something new.

Immediately after the tweets started coming through about other businesses which entered the market late and taken a strong hold’.

The most recent example for me is Instagr.am

It’s ‘another’ photo sharing platform to add to the long list of mobile apps for doing just this, including but certainly not limited to Flickr, Twitpic, Yfrog, img.ly, Mobypicture…. I’m sure there are hundreds.

Next thing I knew all the photos being shared on my tweet stream had all converted to the Instagr.am format – so I had check it out. Turns out Instagr.am added a tiny twist which enabled it get busy with the ‘in’ crowd. By simply adding a filter feature, it made  photo sharing a whole lot more fun.  What filter does is transform the pic and stylise the look to give a retro feel, add few scratches and a white Polaroid frame and you’ve got the hottest new pic app on the entire web. It’s easy to use, and once again photo sharing has been reinvented.

So what’s the lesson here?

Design matters. In fact design is the thing that wins in the long run. Humans like things of beauty. It is coded in our DNA, we prefer the beautiful. Side note: beautiful is both usable and and nice to look at, it must have both.

Existing Market. Sometimes it’s easier to build a better version of something people are using, than to invent a new market. We don’t have to invest time convincing people it is worth participating. Rather, we just need to show them why we are superior. In an industry like we apps where the switching barriers are so low usability and design are often the catalysts for this to occur.

The question for startups is this: How do we sustain a leadership position against the next tiny twist?

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Old Spice: Campaign of the decade?

Everyone loves the Old Spice campaign, how can you not, he’s on a horse! But the reasons why it is so great are probably more important than how great it really is. For anyone who has been living under a rock, the original advertisement deservedly won the Gold Lion at Cannes this year. You can watch it below:

[youtube=http://www.youtube.com/watch?v=owGykVbfgUE]

I think we can all agree it is brilliant. The reasons are many and include the fact that the only promise is what the product will actually deliver, it pokes fun at the category norms and general communication, yet the humour and idea is inextricably linked to the product. In addition it’s one of the few product types where a global message can actually work. In general most global campaigns are obviously made for multiple markets and banal as a result. This was an exception.

The next iteration of the campaign is what put into the consideration set for campaign of the decade. The lead character in the advertising campaign AKA the ‘old spice man’ had a voice and tone which was was unique. He didn’t cannibalize the brand idea, just extend it and give it strength. The actor playing the role Isaiah Mustafa personified the brand, to the point where he could almost say anything and it would work. Knowing this the brand team and advertising agency decided to embark on a semi-live advertising campaign featuring his monologues. It involved setting up studio for a two-day session creating a series of humorous, personalized YouTube videos, with Mustafa reprising the character from the original Old Spice commercial. These were directed at members of the public and celebrities, who had asked him questions on websites such as Reddit, Facebook and Twitter.

It was so slick, so entertaining and brand extending it took a lot of convincing before I believed they were shooting it live. I even tweeted that there was no way this could be live. Just too slick. I was wrong and stoked to be wrong. What they did was set up a studio with Mustafa some props and the copy writers from the agency and they pumped out a TVC every 11 minutes, answering questions posed by key influencers on a few core social networks. Extreme trust by the brand owner Proctor & Gamble was given, which is a massive hat tip to such a large organisation embracing chaos, opportunity and potential risk. Let’s hope that other equally conservative brand stewards take the lead from P & G and let set boundaries instead of requiring approval. You can read more about how they did it here.

The proof of the success goes beyond eyeballs. Of which they generated plenty, in fact the dominance they had over the Youtube most watched page is something I’ve never seen in the 5 years Youtube has been around. They did have well over 110 million views of various executions.

But far more importantly Old Spice has doubled it’s sales since the campaign hit the web. Up 107% currently (Nielsen) though I’m not sure if much coupon or price activity is behind it, you’d have to say the campaign was the biggest driver in a category that has growth below 10% per annum.

What does this all mean?

If any old world marketers have any doubt about the power of the web as a tool should stop and consider for a few moments what has just happened here. It also tells us that old media and new media are clearly ‘better together’. And lastly, brands who want to get the best results have to let go, forget about control and understand that moderating a message will only ever dilute the results.

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