Just found this via Ricoh Europe, in collaboration with The Economist (free PDF download, but requires email registration). This is a definitive MUST READ. Serious intel and stats here, and totally spot-on foresights.
Cross-posted from the Orange Rag, in prep for the upcoming LawTech Futures event in London, in March 2012
When observing the explosive growth of the mobile Internet, the ubiquitous availability of ever more powerful digital devices as well as the global boom in social networking, it becomes patently clear that there is a common economic force behind these trends, and that force is data.
In this hyper-networked society, everyone seems to want to know what we think, all the time, what we like, where we are and who we are connected to. Data (and metadata, i.e. data about data) is quickly becoming a primary force in our digital society, and since successful advertising is forever based on having good data on who is on the other end, the consumer is becoming more powerful than ever before – if he/she opts out of providing data it’s game-over. Never before did consumers wield this much power over marketers; never before could we trade our data for free goods and services in this way (eg Gmail, Skype, LinkedIn, Twitter, Facebook). The quest for data has made us powerful but it has made us dependent on its benefits as well. The Faustian bargain is in full swing.
Some pundits even argue that the only reason advertising in its ‘traditional’ form (a global business worth approx. $550 billion per year) ever existed was simply because we were not yet truly connected, and had no real way to ignore it. Interruption was the game, and the loudest yelling was the best way to sell. Now, with digital technologies in the hand of billions of consumers, we are indeed ignoring what we have no use for, and from our media we expect a lot more than meaningless noise and interruptions. If we provide our cherished data we will expect perfect matches, i.e. a sprinkler system of truly good stuff not a fire-hose of noise.
Because we can now wield data as our currency, we will no longer tolerate interruptions, meaningless pitches, disruptive pop-ups or junk email. Very soon we will be open only for truly personalized offers, real meaning, solid relevance, timeliness, word-of-mouth, and yes, real transparency and truthfulness. It’s all about merit and values that are geared 100% towards us, not to everybody else, or someone else. Our data has become our weapon, and we will barter hard with it. Trillions of dollars of marketing, advertising and public relations budgets are at stake.
Clearly, going forward, if brands and their marketers, the media, and the ads and messages we see do not provide real value we will quickly lock them out of our lives. Useful, data-rich and properly permitted advertising is indeed becoming content itself, and the-people-formerly-known-as-consumers are getting better and better at creating meta-content as well. The power has shifted from the middle to the edges ie to the users, and to the creators (and this is, by the ay, why we have so much upheaval in the content business).
Of course, the key question for marketers still is the same but has just become much more Darwinian: how can you cut the noise, how can you be relevant, be truly wanted (and possibly even loved, like Apple), make a better match, and benefit from meaningful connections? How can you turn the intent of selling into content, into engagement, into mutual appreciation? Is that even possible in the age of digital empowerment? Yelling is dead, and engagement needs permission - a tough but extremely rewarding challenge.
This is where we must consider the enormous value of data, and what it will mean to this new playing field.
Data is now generated at an exponential rate, every day, by billions of users forwarding a link, rating a site, commenting on a blog, tweeting, sharing bookmarks, allowing cookies on their devices, sharing their location, logging into websites, liking something on Facebook. Everywhere we go, everything we do, every move we make around the Net (and soon, elsewhere, as well) creates click-trails, leaves digital breadcrumbs, produces data exhaust, and creates what I like to call meta-content, ie content around content.
In our immediate future are faster mobile Internet access at a much lower cost and much cheaper, yet more powerful and smart, mobile devices, connected devices that are not phones or computers but things, objects and products; computing shifting from tethered computers and mouse clicking to tablets, touch-screens and finger-sweeping; and from downloading to cloud-tapping, which without a doubt will generate seriously more data than ever before, and at an increasing faster rate.
The mind boggles (or, as some would say, it recoils) over the possibilities as well as the challenges. data is the new oil and just like we fought over oil we will fight over data – however these fights will be visible to everyone, and will be fought in public.
Whoever gets to sift through this data, slice and dice it, move it around, make it useful, define its legal and fair use, and somehow make sense of it all, is probably going to be more powerful than Big Oil has ever been. Google, Facebook and yes, Twitter, come to mind immediately.
Something that we must certainly come to grips with is that privacy will almost certainly become something that we must act on to get back, rather than something we attain or retain by mere default. In a way, as Jeff Jarvis likes to put it 'Publicy' is now the default, and privacy is merely an option (and an action item!). Scary thought or huge opportunity? Either way, those powerful new tools of sharing and self-publishing will require that we learn to realize, accept and handle new responsibilities, as well – now that all of us can easily and constantly connect, we also need to learn new limits, new do's and don'ts – and the purveyors of this new power need to help us rather than merely seduce us.
The data that all of us are increasingly generating and constantly spreading as most of us are switching to an always-on mode, will be at the core of all future success in marketing, branding and advertising – and for that alone it's roughly worth $1 trillion already (counting advertising spend, marketing and communication budgets, data- mining etc).
If the future TV does not know who we are, where we are, what we have watched, for how long, who we have shared shows with, what we have commented on, how we rate things, then the marketers' job will become a lot harder, if not impossible. Matches can't be made, relationships can't be forced, brands can't be followed, connections are interrupted.
Getting too little or bad data – or not understanding it – will literally mean running out of gas in the middle of the desert. Therefore, the mission is to keep it all fuelled up. And just like oil, there will be a myriad of issues (hopefully, not wars) that will arise with the responsible and fair practices of drilling, pumping, shipping, refining and dispensing of data. But without a doubt these issues will be solved in due course because this Data-Oil is very potent and because the responsible use of it will light up so many households that a sufficient incentive for problem-solving exists. Telecom companies and mobile operators will want in on this game, as well – afterall, it's their networks that make this all work (for now).
My prediction is that we will see a huge influx of companies dealing with the various aspects of data drilling, shipping, refining and remixing, and that the next Exxon or Mobil may well be a data-slicing company. Hopefully, they will be more ecology minded and sustainable, though. Agencies, marketers and brands need to embrace the challenges and stake out their roles in this new Data-Oil ecosystem.
A few days ago, I did a fairly lengthy and deep skype interview with Toronto-based Marie Germain from Branding 2.0 (see her Twitter channel here), touching on many issues including the future of commerce, selling, marketing and branding, so-called social media (I much prefer the term Social OS), current issues in technology and the Internet (such as SOPA - the deeply disturbing but nevertheless impending U.S. Stop Online Piracy Act), and media / content trends.
There are some quite juicy snippets in this interview, such as:
"In an truly digital society we probably don't need marketing as we know it"
"We are moving from a society, and an economy, based on EGOsystems to a society that is based on ECOsystems (i.e. INTERDEPENDENCE)"
"The old days of commerce were based on handcuffing consumers, now it's all about attraction, engagement and conversations (being a magnet rather than using handcuffs)"
This video uses an interesting format in that it is based on an audio track that was recorded on the phone, and superimposes some related images over it. Interesting. If you just want the audio track, here it is:
Gerd Leonhard TribeRadio Interview Jan 2012: Branding, SOPA et al
From the TribeRadio Youtube post: "World-renown futurist, Gerd Leonhard, in this interview speaks of the very serious challenges businesses and brands face; he offers solutions. On a more sombre note he exposes the ploys of controllers on internet freedom, SOPA to be clear. The Wall Street Journal acknowledges Gerd as one of the leading media futurists in the world. Powerful! Incisive! Gerd is simply delicious to the ears. Keynote Speaker, Founder of The Futures Agency, Advisor to top corporations and governments, author of five books, "The Future of Music", "Music 2.0", "The End of Control", "Friction is Fiction" and "The Future of Content". Gerd's background is in music; however, today he is a top game-changer, inspiring entrepreneurship and guiding us into a prodigious digital world. To reach the Host of Tribe Radio, Marie Germain: at her blog, http://Branding20.wordpress.com or her biz site, http://MarieGermain.com..."
Be sure to check out the other audio / video interviews on here channel as well, including Jeffrey Hayzlett ('Running the Gauntlet' book, former CMO of Kodak).
Today is a very big day for me. My new Kindle book "The Future of Content" just went online at Amazon, and is already gaining a lot of traction. You can view a very short video greeting about the book on my GerdTube channel (Youtube:)
Of course I would be very happy if you would consider buying the book for yourself (only $3.90, Kindle-only) but beyond that it would be really great if you could help me spread the word via rating and / or 'liking' the book on the Amazon.com page, tweeting about it or just forwarding this mail to some friends that may be interested.
As you probably know, I have published my last 3 books as free pdfs (which are quite popular) but really wanted to try something new with this book; after all reading on the Kindle is a much better experience than reading a PDF, and thus is, to quote Kevin Kelly, one of those "New Generatives" :)
"The future of content" will also be available in dead-tree-versions aka print, via my Lulu store, soon - please stay tuned. Happy reading!
Gerd Leonhard
(Media Futurist and CEO of The Futures Agency),
Basel / Switzerland
http://twitter.com/#!/gleonhard
My public Amazon / Kindle profile
(sharing all my book highlights there)
Update October 25 2011: this nice review may be helpful:
Increases brain power for content creators, October 25, 2011"I challenge you to expand your brain and read this book. What Gerd Leonhard is always doing is informing the global brain (or the collective brain) in ways that help us all get where we're trying to go. He builds the buildings in front of us.
This collection points toward several compelling answers for content creators. As a writer who is already swimming in the changing currents of "content," I found it intensely informative. Leonhard shores up my courage to continue embracing a digital world without DRM, and ebook prices "for the masses." He makes the all-important concept of curation crystal clear. If you are providing any kind of content in print or on the web, it's relevant. If you want to stay on the front edge of content creation and publishing, it's basic. I'm making this book mandatory reading for my epublishing circles"
Amazon Kindle German Store
Amazon Kindle French Store
Amazon Kindle UK Store
ABOUT "THE FUTURE OF CONTENT"
Futurist Gerd Leonhard has been writing about the future of content i.e. music, film, TV, books, newspapers, games etc, since 1998. He has published 4 books on this topic, 2 of them on music (The Future of Music, with David Kusek, and Music 2.0). For the past 10 years Leonhard has been deeply involved with many clients in various sectors of the content industry, in something like 17 countries, and it’s been a great experience, he says. “I have learned a lot, I have listened a lot, I have talked even more (most likely:) and I think I have grown to really understand the issues that face the content industries - and the creators, themselves - in the switch from physical to digital media.”
This Kindle book is a highly curated collection of the most important essays and blog posts Leonhard has written on this topic, and even though some of it was written as far back as 2007 - “I believe it still holds water years later. I have tried to only include the pieces that have real teeth. Please note that the original date of each piece is shown here in order to allow for contextual orientation.” Leonhard’s intent to publish this via the amazing Amazon Kindle platform, exclusively, and at a very low price, is to make these ideas and concepts as widely available as possible while still trying to be an example of what digital, paperless distribution can look like, going forward.
RCR Wireless has collected some good snippets from my talk at the Mobile Marketing Association Forum in Sao Paulo, yesterday (download the 15MB high.res pdf here):
"Futurist and author Gerd Leonhard explained during a keynote address today at the Mobile Marketing Association Forum in São Paulo that customer trust was vital. “If we don’t trust Google, Twitter, Facebook, we leave them and they will die,” Leonard said. However, the key pillar to a solid strategy of mobile marketing is a focus on content. “Advertising is becoming content, marketing is curation, mobile is empowerment, brands are publishers, marketers become storytellers and consumers are participants,” explained Leonhard.
The future passes through the end of “mass-anything” and marketing has been dramatically impacted by the increased role of technology. “There is no difference between online and offline. Disconnected screens will be the exception, they will disappear,” said Leonhard. With all devices connected, network traffic will explode. All of this will culminate in changing how companies approach their mobile strategy. The point is how they will interact with customers. “If you want to succeed you have to give them control, as much as you can. Customers will love you,” Leonhard said, adding that empowerment, participation and engagement are the key points..."
See the Twitter buzz from the event, during my talk
This is from 2007 but still quite useful, I think - hope you like it, as well. Find out more about Glen, here
This video is part of a new series of 5-7 minute videos I recorded here in Basel, Switzerland in July. This episode shows about how I use social networks and mobile-optimized platforms / apps to spread the word about what I do. I also provide a few examples of the most efficient and viral online branding concepts that I have tried during the past decade. You can download this video if you go to my GerdTube.net video channel (on Blip.tv) or just subscribe to my video podcasts in iTunes.
Broadcasting (TV, Radio) is switching from Push to Pull. And so is advertising! Let me know what you think:)
This video summarizes the key messages of my 2009 book "Friction is fiction" (free PDF). The bottom line is that in a networked and digital society we can no longer merely rely on FRICTION i.e. planned hurdles and carefully placed obstactles to enforce payments or otherwise get paid for something. Most traditional friction points - whether in media / content, communications / marketing or business and commerce - can now be easily bypassed (see free music streaming vs itunes, Youtube / Netflix vs cable-tv, whatsapp vs sms etc), and this trend will only accelerate. IMHO I think it will suit us better to get used to it now, i.e. we may want to lessen our dependence on friction and increase our efforts to monetize based on radical user empowerment. Think Zappos not Barnes & Noble. Be sure to watch this related video recorded at TedXWarwick on the same topic.
This is what happens when you connect MSFT's Kinect platform with shopping. Via FastCompany: "A new augmented reality shopping platform for Xbox Kinect will allow users to try on clothes in true 3-D, share photos with friends, and store wish-listed items on smartphones for shopping on-the-go... "The customer can visually see what an object looks like on them without even entering a retail store," Steve Dawson, Technology Director for the Emerging Experiences group at Razorfish tells Fast Company. Unlike existing virtual shopping that shoehorns 2-D photos on top of body snapshots, "with Kinect, you can find the physical outlines of a person and map it to your body."
A lot of key terms and themes are nicely explained in this video
Here it is - hopefully we will have a video soon, too
18 minutes can be quite short, I think; I always feel a bit rushed as a consequence. But either way, I would love to get your feedback on what you think about this fast-paced presentation; so please leave your comments below or email me. To make this a bit easier, here is the PDF (18MB) of my slides: TedXWarwick Gerd Leonhard PDF. Provided under the usual creative commons attribution non-commercial license, just like all my other slideshows and videos. Most other TedXWarwick can be found here. You can download my book "Friction is Fiction" here (free and hopefully 'friction-less' PDF), or buy a dead-tree version here.
Here. Poynter.org has some good comments. Futureof.biz source. Stateofthemedia.org
Advertising bounces back - but not for print - and online leads along with LocalTV (US)
Radical move of audiences to the Internet: chew on this.
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