Posts Tagged ‘AT&T’

AT&T Tries to Reach the “Minority Report” Mobile Future

Monday, November 9th, 2009

One of my favorite things to do in presentations about mobile and the future of marketing is to replay the scene above from the movie Minority Report (play above), in which Tom Cruise walks through a subway station and is bombarded with personalized 3-D ad units that scan his pupils and attempt to entice him to buy one of many products. Director Steven Spielberg actually got help from the MIT Media Lab to come up with the advertising concepts used in the movie. The movie was set in 2054, but here, today, aggressive companies want to make it a reality now. They dream of a world where our mobile devices are alerted to coupons, deals, and promotions as we walk by store fronts. Last week AT&T showed off such a mobile couponing concept at its Tech Showcase. But here’s the reality for today and tomorrow: These ideas will fail completely.

At the link below you can see a very short video of the AT&T concept, which is consistent with an idea that dozens of futurists, entrepreneurs, and big marketers hope will come true one day:

Next time you hear someone claim that this is the future of advertising, kindly beg to differ. The big problem with this concept is that people don’t like to be interrupted by advertising! I know, I know; it’s hard for us lifelong marketers to deal with, but it is absolutely true. To put this in perspective, let’s imagine that you could give out your home phone number to any number of marketers, and when these marketers have a “great deal” for you, they could call your home phone and speak to you when you answer, or leave you a voice mail message. Sounds great, right? Not really. In fact, more than 76% of Americans have registered their home phone numbers on the National Do Not Call Registry, which shows two problems with this future scenario.

First, the telephone is a very personal tool that people are extremely protective of. We look at the phone as our window to the world, our way of communicating with the people who we want to talk to. We own our phones and our numbers; we even pay to keep these numbers by moving them from phone to phone and address to address. It is literally a lifeline in some cases. When Congress overwhelmingly passed the Do Not Call Registry legislation, they established the fact that a telephone line is something that the homeowner “owns,” rather than a public space such as the street in front of your house. And this and other laws have ingrained the “right to phone control” in people’s lives.

The second major issue is the fact that when we let marketers start sending “valuable” messages, it’s highly likely to be completely irrelevant and annoying. Let’s use email as the analogy in this case. Soon after marketers gained the ability to send email to customers and prospects, they discovered that they could reach many, many people at the push of a button and at near zero cost. When you have freedom to advertise at no cost, the result is unbridled junk. And despite great data about the value of personalization, most marketers are lazy and would rather just spam millions and hope that some small percentage opens the email and buys a product. And I’m talking about big, reputable marketers here, not just the common spammers.

Doubt me? Well, take a read of my post on how Banana Republic is sending me emails about women’s boots. In this Minority Report world, why would Banana Republic do anything differently? In this AT&T future, when I walk by its store in the mall they will send me the same irrelevant offers that they’re sending me now. And it will take only a handful of these lazy, valueless messages before I unsubscribe to this entire mobile marketing app or end my contract with whatever mobile service is pushing it on me. And even if they do something personalized (say for men’s shirts), the chances that I will be in the mood to stop in the store when I am going about my life and trying to get things done is extremely small. Sure, one walk by out of 100 might find me in the buying mood, but that means 99 messages will simply annoy me.

This brings me to some of the special reasons that mobile is the last place such a service could succeed. The mobile phone is even more personal and private, and people are scared to death that it will be taken over by marketers. A few data points from recent studies by ACNielsen:

  • Mobile marketing was judged to be the “least trusted” form of advertising by consumers in 47 countries.
  • Only 10% of people responded to ads in a test.
  • 67% of people found it unacceptable to have ads on their mobile device.

We consumers really shouldn’t worry about the interruptive mobile future, because it faces two giant barriers. First, the mobile-service providers know that it would be suicide to force such an advertising medium on their customers. Thankfully, we have several choices in which company we go with for service. If any one of them starts spamming, then the move to alternatives would be swift. And there’s just not a ton of money for the AT&Ts of the world to reap from advertising, either. They make $50 to $100 per month on service. But at even a CPM rate of $100 for this “high quality impression,” you would have to hit people with many, many ads for this to earn a few bucks per month.

The second barrier to this future is the highly likely legislation that governments would pass to prevent this from happening. The Do Not Call Registry was the biggest slam-dunk bill passed during George Bush’s eight years. Congress loves to pick on advertisers because their constituents are sick of 3,000 ad interruptions per day, and very few people are going to defend the rights of a group that is respected at about the level of used-car salesmen.

Finally, let’s remember the barrier to all of the greatest ideas in the present and future of marketing: It takes forever for businesses to try something new. People envision a service like this to be a boon to small businesses, but here’s the reality: Small businesses don’t have a lot of marketing dollars, and they are the last to try new marketing. I love how one sandwich place near our office started using Facebook to spread the news of its daily specials. But these are few and far between. Not to mention the fact that they have been using a very, very low-tech way to share offers and promotions with people as they walk by: the sign!

So as much as we marketing geeks think it would be cool to intercept potential customers as they stroll by our stores, this idea is DOA. I think the only possibility for it to work is for services that are completely opt-in. Foursquare is one company that hopes people who have time to kill and want to see some offers will open its app. This is going in the much more meaningful direction, as it means the consumer is choosing to engage. That said, this is an idea on the small side. A store might get one person a week who has the app, logs into the app, sees a special he likes, walks in, and decides to buy.

I’m an enormous believer in the potential for mobile to connect customers and marketers in meaningful ways. But let’s file the Minority Report future somewhere along flying cars and remember to put ourselves in the customers’ mindset first.

Big Brands Borrowing Interest Everywhere

Monday, May 11th, 2009

I’ve been watching more live television than normal lately, mainly because I’ve gotten the NBA Playoffs bug. Something that has amazed me as I dip back into “normal” non-ad-skipped TV viewing is that there are a LOT of television commercials for big brands that advertise completely different products. Here are some examples:

Microsoft advertises Quiksilver. In this ad, Microsoft plays a sketchy and scratchy phone interview with Quiksilver President and CEO Bob McKnight, and we learn that “without technology, we would be nowhere.” There’s nothing in the ad about Microsoft, other than an animated, wadded-up piece of paper suggesting that Microsoft technology is “people ready.”

AT&T advertises TOMS Shoes. In the ad below, we follow the day of Blake, Chief Shoe Giver of TOMS Shoes. During a 30-second span, we learn that for every pair of shoes the company sells, it actually gives away a pair to a child in need. Blake is running around the world giving away shoes, so he depends on a global communication network that works. While his company doesn’t clearly endorse or even mention AT&T, there is a simulated, branded screen on Blake’s BlackBerry.

TrueNorth Snacks advertises Inspiration Cafe. This is one of a handful of ads in which TrueNorth (a Frito-Lay brand) highlights the story of an individual who is improving the world. The ad below (which I wrote about in this blog post a few months ago), tells the story of Lisa Nigro, who created the Inspiration Cafe to serve Chicago’s homeless population with dignity and respect.

There you have it: Three really big companies are spending millions of dollars on media and commercial production to advertise other brands. In each case, the spending brand plays a very minor part in the background of the message, somehow “powering” the featured businesses, or in TrueNorth’s case, sharing a mission to change the world.

My Takeaways:

1. Many brands are struggling to find a purpose and become meaningful. The fact that these brands cannot find a way to stand out on their own suggests a breakdown in their brand equities. I cannot fault these brands for leveraging others’ stories to break through and attempt to connect with their target customers, but I believe borrowed interest is very, very difficult to win with in today’s market. First, in a 30-second sitting when people are barely paying attention, they are lucky to recall the featured brand, much less the “sponsor” of the ad. My wife, for example, recalled everything about the TOMS Shoes commercial when the topic came up over dinner the other night, but she had no clue that AT&T was involved.

Second, people love TOMS Shoes for what it does, and likely cast aside the very weak connection to whatever global communications network the company happens to use. Further, I find it weak that none of these brands is actually doing something to be part of the mission/vision of the organizations they are borrowing interest from. AT&T is not offering free mobile service to TOMS Shoes efforts around the world, and TrueNorth is not actually helping establish new Inspiration Cafes around the country.

2. Meaningful brands attract attention, and maybe even free advertising. I tell people all of the time that there has never been a better time to launch a new brand. The costs of launching a new product are declining everywhere thanks to contract manufacturing efficiency and low-cost global marketing tools on the Web. All you need is a quality product, great story, and some fans to personally spread the buzz. Now add in the fact that big companies just might swoop in and put tens of millions of dollars of marketing support into your lap for the chance to borrow your mojo. Hell, the ads above show that your new brand doesn’t even have to explicitly endorse the big spenders.

So what should Microsoft, AT&T, and TrueNorth be doing instead? Simple: not rest until they have found a way for their brands to become cherished by their customers. Commit the entire organization to a brand purpose that resonates with the target customer, and then create marketing that itself delivers meaning.