Posts Tagged ‘sxsw’

Sharing Social Insights from #SXSW

Thursday, March 25th, 2010

sharing kids

Lately I’ve been thinking a lot about how our society is becoming more “social” thanks to digital tools that are bringing us closer together. Blogs, online communities, Twitter, Facebook, and Foursquare are helping people help each other more than ever since we broke out of small clans thousands of years ago. For a while I have believed that these social-media tools are taking off because they match the way the human race has evolved to survive and advance by sharing. At the SXSW Interactive conference, I had the chance to see professor and author Clay Shirky connect more dots for me in his talk, titled “Monkeys with Internet Access: Sharing, Human Nature, and Digital Data.”

Shirky retold several stories from his excellent book, Here Comes Everybody, but focused on describing some fundamental insights around what and why people share. His first point was that people are programmed to share based on millions of years of evolution in which we lived in small groups and traded favors and resources to survive. Remembering favors and managing personal relationships takes up a large part of our advanced brains, and studies show that there is even a limit to how many relationships our powerful processors can manage at one time (Dunbar’s number, which is said to be 150 for humans). The act of sharing releases a pleasant-feeling dopamine reward and positive memories that last for some time.

But all sharing is not created equal. While all forms of sharing can bring positive feelings, different types come at different costs. Shirky painted the picture of an old woman walking toward you on the sidewalk. She is trying to get your attention and can ask for one of three kinds of favors:

  • Goods: She might ask for money. This causes us to tense up and feel most negative, because sharing a “good” like this comes at a one-for-one cost. If you give her your money, then you cannot benefit from it any more.
  • Services: She might ask you to help her cross the street. This comes at some cost, as you must stop what you are doing and spend your time backtracking with her. But this favor does not take much from you.
  • Information: She might ask for directions to a nearby store. This favor is essentially free because it takes very little time and nothing is lost. Interestingly, because information is given at no cost, our society generally looks down on people who fail to share this. We have evolved to punish people who fail to share alike.

Shirky used this model to describe how online music swapping arose so quickly with Napster despite claims that it was socially unacceptable—like stealing. In the days of records, people did not share music very often because you would literally have to give up your record album to a friend. It was a good people did not want to part with. With the rise of cassettes and CDs, people shared more often by making a mix tape or burning a copy. This was a service that took some time to do for each person, so it was still fairly difficult. But the ability to rip and share music online turned music into information that people easily shared among friends. In fact, we became compelled to share this information at risk of being perceived as a hoarder.

Technology that allows for greater sharing, say turning goods into information, or making information much easier to share broadly, has led to some of the largest societal changes in history. The adoption of the printing press in medieval Europe brought religion to the masses and sparked revolutions in faith and science. According to Shirky, “abundance brings more change than scarcity.” He described how already digital sharing is “turning small, private, expensive good acts into big, public, cheap ones.”

I believe marketing is one of those models that will change dramatically because of the power of sharing. Today, digital tools have turned us all into consummate sharers. With five seconds on Facebook or TripAdvisor, we can benefit from the positive feelings of sharing tips and reviews with friends and strangers. Such information is more trusted and useful than anything advertisers can say, and Google places much heavier weight on what society says when individuals search for answers online. Advertisers, grocery stores, maitre d’s, and travel and real estate agents no longer have the power of information scarcity in a society in which people are rewarded, encouraged, and compelled to share with each other.

In a presentation after Shirky’s, renowned speaker Tim Sanders shared his experiences and secrets on how to make a living from the speaking circuit as he does. That’s right, Sanders gave away extremely rare and powerful information to people who might end up competing against him for speaker fees in the future. But Sanders enjoys helping others, and he believes that he is better off sharing with others who will drive the personal connections and positive word of mouth that will him get more, higher-paying speaking gigs down the road.

Interesting, Sanders was asked by someone in the audience about whether “transparency” was the defining word of our new age of digital social sharing. He actually disagreed, saying:

“Anyone can be transparent. I believe the history books will say that social media was about ‘being helpful.’”

My many thanks to both Shirky and Sanders for sharing information that will help me be more successful in guiding marketing strategy and winning speaking opportunities. And through this blog post, I hope you benefit from their knowledge as well.

Why Foursquare Ruled #SXSW

Thursday, March 18th, 2010

foursquare sxsw

Late Sunday night I got back from my first-ever trip to the much-discussed South by Southwest (SXSW) conference for Film, Music, and Interactive in Austin, Texas. After seeing many friends and other folks in the business rave and tweet about this event for a few years, I felt compelled to add yet another conference badge to my collection. Overall I found it to be one of the best conferences for digital marketing that I have attended in some time. That means something, because I think I’ve been to more than a dozen different digital shows in the past 24 months alone. Over the course of the next few blog posts I plan to share some of my biggest takeaways and examples of Marketing with Meaning.

First up is an example of a start-up digital service that used meaningful marketing to make the conference better for nearly everyone involved: Foursquare. For those who haven’t heard, Foursquare is a mobile tool that allows you to “check in” at locations where you physically appear—essentially a way of broadcasting to friends that you are, say, having a coffee at Starbucks, or waiting in line at the DMV. This is the leading brand in a new category of “geo-location” services. You might call it “Geo-Twitter”—in fact, you can update your Twitter and Facebook accounts with Foursquare when you check in around town.

SXSW is a very big event for the folks at Foursquare for many reasons. It is the place where partners and customers gather to see what’s new. Investors are lurking everywhere to spy the next hot winner. And some of the earliest early adopters and trendsetters (including a few celebrities) share their latest findings with their friends at SXSW.

So it is a clear business objective to own this event in every way possible. For most companies, this means paying sponsorship dollars to put your name everywhere, employing booth babes to walk around with branded snacks, and maybe hosting a giant beer-for-all for everyone at the event. But not Foursquare. Instead, Foursquare stuck with what makes its service special, and spent most of its time and money making it more so.

Foursquare is already a killer app for conferences. It is most effective when a large group of people who know each other and want to get together are located in a pretty close environment. This is exactly what conferences are all about. So instead of calling or texting to find out where your friends and contacts are, you simply see where they have recently checked in and walk over to the conference room, bar, or restaurant where they happen to be. This even makes it easy to “run into” people who you might unable to reach via email or telephone.

This is why Foursquare became so popular at SXSW in 2009. So the business decided to do more with this hyper-engaged, ultra-important audience in 2010. When we got off the plane in Austin and checked into the airport, we noticed that Foursquare had created special new features for SXSW participants. The main add was a set of special “badges” that you could unlock by performing various check-ins during the six-day event. Badges are a key element of the basic Foursquare service—providing you a fun way to show that you have, say, checked in at 50 different total places or from five airports or from a boat. They are fun for the user, and cleverly (and cheaply) train people to make Foursquare check-ins a habit. Some of the special SXSW badges include the “Austin Explorer” for hitting five locations in the city, and the “Hookup” for checking in at two different hotels. For me and our team, we found that these badges turned Foursquare into a living game that made some of the boring moments between sessions and meetings much more tolerable.

Foursquare did more than virtual badges, though. The firm partnered with specific locations such as the Pepsi Refresh Cafe and SXSW Web Awards to give people temporary tattoos to match their unlocked badges. And it partnered with PayPal to donate $.25 for every check-in to Haitian relief efforts. Foursquare even reported a running total of how much you had earned for Haiti. (I believe I hit more than $8.)

Only the folks at Foursquare know how much this modest expense in programming time delivered for its business at this big event. One key data point reported on its site shows that there were more than 15,000 badges awarded, including 6,025 versions of the Austin Explorer. That means that roughly 50% of the 12,000 people who went to the Interactive conference tried Foursquare.  According to this article, there were 300,000 check-ins in Austin during the event, and Foursquare added 100,000 users overall – “likely as a result of check-ins being broadcast to Twitter and Facebook.” This might have even helped the nascent company establish a business model; TechCrunch made the case that Foursquare could create a business around building similar special apps for other conferences.

So many thanks to Foursquare for helping me get a more out of my company’s significant time and money investment in sending me to SXSW. I will certainly repay the favor by giving this new service major attention in the months ahead.