Category Archives: Consumer Psychology

The Cult of Technology

We held our B2B Expert Face-to-Face event yesterday in Redwood Shores, CA. Yes, we asked people to drive to the west side of the bay the same day the Bay Bridge was closed. Needless to say, it impacted our attendance somewhat. But it was also a smaller, more intimate opportunity to really talk about the challenges common in B2B digital marketing. The common themes that emerged what a tendency to “peg” search as direct response marketing, the realization that B2B is slower to adopt digital than B2C, the difficulties presented by the fragmentation of the B2B marketplace and why we’ve tended to silo off our digital strategies from the rest of our marketing. Most of the discussion came from the findings of the BuyerSphere Project, the extensive research we conducting into B2B buying behaviors.

Every timeI talk to a group of assembled search marketers, I can’t help but feel the palpable frustration in the air. The gulf between those that understand digital (particularly search) and those that don’t can seem impossible to bridge. We feel tied down by those within our organization that seem mired in the old way of doing things. Why the hell can’t everyone see the world as clearly as we can. Also, I mentioned that as marketers, we tend to focus too much on technology and not enough on the people that interact with that technology. Few companies invest in qualitative research As we chatted at the Hotel Sofitel In Redwood Shores, a thought struck me. One on the problems may be that we’re all too much alike. We’re suffering from cultural homogeneity.

If you look at most elements of human nature, there it a typical normal distribution curve, otherwise known as the Bell Curve. The majority of the population clusters around the mean, at the center of the curve. As you move further out, you have more deviation from the mean. The diversity of us humans: whether it be intelligence, wealth, behaviors, physical abilities or size, tends to spread out on this curve.

bell_curve

The same is true, as Everett Rogers discovered, about how quickly we adopt technology or (one supposes) adapts to change. His technology diffusion curve followed the typical Bell Curve model. A few of us adopt technology almost as soon as it becomes available. A few of us avoid adopting technology until it becomes common place for everyone else. The vast majority of us fall somewhere in the middle.

technology diffusion
But what happens when you’re constantly surrounded by people at one spot on the curve? What if everyone you knew had an IQ of 123, or you lived in a town where everyone was 6 feet 3 inches tall? Soon, you’d fall into the trap of thinking this represented the norm. If you never saw diversity, you’d start to forget that it exists.

This is almost never a healthy state of an affairs. A common ideology amongst the heads of Nazi Germany lead to a drive for cultural homogeneity. The unbelievable wealth that surrounded the French aristocracy (or the Russian, for that matter) led to revolts of the masses. History has not proved to be kind to groups that are too much alike in one aspect. At best, this homogeneity gives you a skewed view of the world that may cause you to make decisions that don’t map well to the general population.

And that, I realized on Wednesday morning, may be exactly what is happening to us digital marketers. We are in this business because we all love technology. We are all classic early adopters, lying at least one (and I suspect closer to two) standard deviations from the norm, here at the thin leading edge of the Bell curve. And because we are surrounded by others like us, we start to lose sight of what the large bulge in the middle is doing. We chase technology with an obsession worth of sex starved teenagers. Every digital marketer I know has a smart phone. More than half the digital marketers I know have iPhones. If you travel in the same circles as I, you would soon think that everyone has an iPhone. Yet the iPhone market share in the US is  still only 11% (although it’s growing quickly). Like I said, we live on thin edge of the curve.

I think this skewed view of the world makes us exactly the wrong people to be planning digital marketing strategies aimed at the general public. We live in a cult of technology. We’ve forgotten how the common person lives with their hopelessly antiquated mobile phone and without a Linked In profile that includes at least 500 connections. There are many, many people out there who have never Tweeted, don’t have a blog and are unsure what RSS means. They include almost all my relatives. Yet we never seem to take them into account where we’re salivating over the latest strategy for generating buzz on social networks.

So, how does a digital marketer keep their perspective when they’re so far removed from normality? They have to become digital anthropologists. They have to live with their prospects, watching them in their daily routines. They have to discover the way we were meant to discover, by watching other people, helping us to understand and empathasize with them. Evolution has equipped us with some very subtle tools for understanding other people when we’re face-to-face with them. To my knowledge, however, it hasn’t given us an inherent ability to generate pivot tables in Excel. Maybe we should spend more time doing what we were meant to do: hang around with real humans instead of technology.

Talking Search with Dr. Jim Jansen at Penn State

JimJansen032105This is the full transcript of an interview with Professor Jim Jansen at Penn State University. Excerpts from the Interview are running in two parts (Part One ran a few weeks ago) on Search Engine Land. I wrote a column that provided a little background on Dr. Jansen on Search Engine Land.

Gord:
Jim, we’ll start by laying out some of the research you’ve been doing over the past year and a half and then we’ll dig deeper into each of those as we find interesting things. Just give me the quick 30- or 60-second summary of what you’ve been working on in the last little while.

Jim:
I have several research projects going on. One that I really find interesting is analyzing a five calendar year search engine marketing campaign from a major online retailer and brick-and-mortar retailer. It’s about 7 million interactions over that time, multi-million dollar accounts and sales and stuff. A fascinating temporal analysis of a search engine marketing effort.
I’ve been looking at that at several different levels – the buying funnel being one, aspect of branding being another, and then the aspect of some type of personalization, specifically along gender issues. And so that’s been very, very exciting and interesting and (has offered) some great insights.

Gord:
I’m familiar with the buying funnel one because you were kind enough to share that with me and ask for my feedback, so let’s start there. I know you went in to prove out some assumptions, for example, is there a correlation between the nature of the query and where people would be in the buying funnel? Is there identifiable search behaviours that map to where they might be in their purchase process? What did you find?

Jim:
I looked at it at several different levels. One goal was to verify whether the buying funnel was really a workable model for online e-commerce searching or was it just a paradigm for advertisers to, you know, get their handle around this chaos. And if it’s an effective model, what can it tell us in terms of how advertisers should respond?
In terms of the first question, we had mixed results. At the individual query level you can classify individual queries into different levels of this buying funnel model. There are unique characteristics that correspond very nicely to each of those levels. So in that respect, I think the model is valid.

Where it may not be valid is specifying this process that online consumers go through. We found that, no, it didn’t happen quite like we assume.  There was a lot of drop-out and they would do a very broad query and that might be all.
So we looked at the academic literature – you know, what theoretically could deal with that or explain that? – and the idea of sufficing seemed to fit. If it is a low cost, they won’t spend a lot of time, they will just purchase it and buy it.
In terms of classifying queries in terms of what advertisers’ payoff is, I think the most interesting finding was that the purchase queries – the last stage of the buying funnel – were the most expensive and had no higher payoff than the awareness or the very broad, relatively cheaper queries. From talking to practitioners, that is a phenomena that they have noted also … which is why a lot of people bid still on very broad terms, to snatch these potential customers at an early stage.

Gord:
Based on what you’ve seen, there are a couple of really interesting things. You and I have talked a little bit about this, but we similarly have found that you can’t assume a search funnel is happening because people use search at different stages and they’ll come in and then they’ll drop out of the process, and they may come in later or they may not, they may pursue other channels. But the other thing we found is sometimes there’s a remarkable consistency in the query used all the way through the process and that quite often can be navigational behaviour. It can be people who say, “Okay, the last time I did this, I searched on Google for so-and-so and I remember the site I found was the third or fourth level down,” and they just use the same route to navigate the online space over and over again. If you’re looking at it from a pure query level, it’s a bit of a head-scratcher because you’re going, “Well, why did they use the same query over and over?” but again, it’s one of those nuances of online behaviour. Did that seem to be one of the possible factors of some of the anomalies in the data?

Jim:
Well, that trend or something similar to it has been appearing in a lot of different domains and researchers are attributing it to “When I do a query, I expect a certain result.” So, you know, a query that may be very informational, what we’re finding is that searchers expect a Wikipedia entry. So in other words, a very navigational intent behind that very informational query. And I think the phenomena you’re describing is very similar. We have a transactional-type query and users are expecting a certain web page, a navigational aspect, and that “Okay, I have an anchor point here that I’m going to go to.” And then off search engine, maybe they do more searching and actually do some type of buying funnel process. But at the search engine, yes, we’re seeing a lot of that navigational aspect. I just looked at a query log from a major search engine and an unbelievable amount of queries were just navigational in nature.

Gord:
We’ve certainly seen that. A lot of our recent research has been in the B2B space, so it’s a little bit different but certainly it follows those same lines. When we looked at queries that people would use, a large percentage of them were either very specific or navigational in nature.

You know, the idea of satisficing, of taking a heuristic shortcut with their level of research is also interesting. It seems like if the risk is fairly low, the online paths are shorter. Is that what you were finding?

Jim:
Yes, and the principle of least effort is how it’s also presented. We see it in web searching itself generally in how people interact with search engines and how they interact with sites on the web. They may not get an optimal solution, but if it’s something that’s reasonable and if it’s good enough, they’ll go for it. That seems to be occurring in the e-commerce area also: “I want to buy something relatively cheap. This particular vendor may not have the best price, but it’s close to what I’m thinking it should be. Just go and get it done, get it over with, buy it.”

Gord:
I would suspect that that would also be true in product categories where you have mentally a good idea of what an acceptable price range would be, right?

Jim:
Yes.

Gord:
So if it’s a question of making a trade-off for $2 but saving yourself a half hour of time, as long as you’re aware of what those price ranges would be, you’re more apt to make that shortcut call, correct?

Jim:
Yes. It does assume some knowledge and risk mitigation –if it’s a small purchase and that varies a little bit for each of us, but you’re willing to cut your costs of searching and trying to find the best deal just to get it done.

Gord:
I suspect part of this would also  be your level of personal engagement with the product category you’re shopping in. So I’ll spend way too much time researching a purchase of a new gadget or something that I’m interested in just because I have that level of engagement. But if it’s a purchase that’s on my to-do list, if it’s just one task I have to get done and then move on to the next thing, I suspect that that’s where that satisficing behaviour would be more common.

Jim:
Yes. Now you bring up a really good point. If it becomes entertainment – like a gadget that you enjoy researching – it’s no longer work, it’s no longer something you get done. The process of doing it makes it enjoyable so you don’t mind spending a lot of time. In those kind of cases, the goal really is not the purchase, the goal is the looking.

Gord:
We found that alters the behaviour on the search page as well. So if it’s a task-type purchase where I just have to go and get there, you see that satisficing play out on the search page too. Typically when we look at engagement with the search page, you see people scan the top four, three or four listings. If it’s that satisficing type of intent where they’re saying, “I just want to buy this thing,” you’ll see people scan those first three or four and pick what they feel is the path of least effort. They go down and say, “Okay. It’s a book. Amazon’s there. I know Amazon’s price. I’m just going to click through and order this,” but if it’s entertainment, then suddenly they start treating the search page more like a catalogue where they’re paying more attention to the brands and they’re using that as a navigational hub to branch off to three or four different sites. Again, it can really impact the nature of engagement with the web… or with the search page.

Jim:
Absolutely, and I really like your analogy of a catalogue. You know, there are some people that love just looking at a catalog – flipping through it, looking at the dresses and shirts or gadgets or sporting gear or whatever. And so that’s a much different engagement than flipping through the classified ads trying to find some practical thing you need. The whole level of engagement is at totally opposite ends of the spectrum, really.

Gord:
As an extreme example of that, we did some eye-tracking with Chinese search engines and we found that with Baidu in particular, people were using it to look for MP3 files to download. So when we first saw the heat maps – and of course it was all in Chinese, so I could understand what the content on the page was without having it translated – I saw these heat maps going way deeper and much longer than we ever saw in typical North American behaviour. We saw a level of engagement unlike anything we had ever seen before. And it was exactly it. It was a free task – They were looking for MP3 files to download and they were treating the search page like a catalogue of MP3 files. They were reading everything on the page.  I think that’s just one extreme example of this catalogue browsing behaviour that we were talking about.

Let’s go to one of the other findings on the buying funnel: that quite often the more general, broader categories from an ROI perspective can perform just as well as what traditional wisdom tells us is your higher return terms.  Those closer to the end of the funnel – the ones that are more specific, longer, more transactionally oriented. What’s behind that?

Jim:
Like a lot of these questions there’s no simple answer because there are plenty of exceptions to the rule you just described. There are some very broad terms that are very cheap, others that are very expensive. On the purchase side, there are some key phrases that are very cheap because they’re so focussed and others are expensive. But in this particular analysis – and again, this was 7 million transactions over 33 months, from mid-2005 to mid-2008 – the awareness terms were cheaper than the purchase terms and they generated just as much revenue.

I think a lot of it is that perhaps the items this particular retailer was selling fell into that sufficing behaviour: gifts, fairly low-cost items – there was just no need to progress all the way to that particular purchase phase.

To me it was really very unexpected. I really expected those purchase terms to actually be cheaper because they were more narrowly focussed and to generate more revenue, but it didn’t turn out that way.

Gord:
That brings up an interesting point we’ve seen with client behavior, especially given the current economic condition. We found is a lot of clients are tending to optimize down the funnel – they are tending to look at their keyword lists they’re bidding on and move further and further down to more and more specific phrases, because the theory is – and generally they do have analytics to back this up – that there’s greater ROI on that because these are usually people that are searching for a specific model or something which is a pretty good indicator that they’re close to purchase. But I think one of the by-products of that is as people optimize their campaigns, those long tail phrases are getting more and more expensive because there’s more and more competition around them, and as people move some of their keyword baskets away from those awareness terms, maybe the prices on that, it all being based on an auction model, are starting to drop. Do you think that could be one of the factors happening here?

Jim:
That very well could be. The whole online auction is designed around (the concept that) as competition increases, cost-per-clicks will increase also. It also may be that those particular customers don’t mind clicking on a few links to do some comparison-shopping and may end up going somewhere else. They may have a higher aspect of intent to purchase, but the competition among where they’re going to buy is more intense.

You know, compare that to this sufficing shopper: you just have to get that person’s attention first with a reasonably priced product and you will make the sale. That is the one issue with analytics in terms of transaction log analysis – we can analyze behaviours and we can make some conjectures about what happened, but you need lab studies and surveys to pan all data, to get the why part.

Gord:
That’s a great comment and obviously something that people have heard from me over and over again, because we do tend to focus more on the quantitative approach. I think this goes back to what we were talking about originally –online information gathering is a natural extension of where we are in our actual lives so it’s not like a distinct, contained activity. It’s not like we set aside an hour each day to go through all our online research. More and more, we always have an outlet to the internet close by and as we’re talking or as we’re thinking about something, it’s a natural reaction just to go and use a search engine to find out more information. And I think because it’s such a natural extension of what’s happening in our day-to-day lives, that the idea of this one linear progression through an online research session isn’t the way people act. I think it’s just an extension of whatever’s happening in our real world. So we may do a search, we may find something, it may be an awareness search, and then we may pursue other paths to the eventual purchase. It’s not like we keep going back and forth between a search engine with this nicely refined search funnel. It’s not that neat and simple, just like our lives aren’t that neat and simple.

Jim:
Yes, all models get rid of all the noise that reflect reality. So the neater they are, the less accurate they are, and the buying funnel is obviously very neat and so I think it’s reasonable that it represents a very small number of searches that actually progress exactly like that. We’re very nonlinear in things we do and so I assume our purchase behaviors are too.

Gord:
I want to move on to the question of branding a little bit, because you mentioned that that was one of the areas you were looking at. And at Enquiro, we’ve done our own lab-based studies on branding, so I’d be fascinated to hear what came out as far as the impact of branded search.

Jim:
This year, I’ve really got into this whole idea of branding in terms of information seeking. That’s really my background, web searching and how people find and assemble information. One of my first studies was to look at the comparison of what a search engine brand would do to how searchers interpreted the results. So I ran a little experiment where I switched the labels from Google, Yahoo, and MSN, and the results were the same. Certainly the search engine brand has a major lift to it.
In this particular study using the search engine marketing data, we did multiple comparisons of brand or product name and the keyword in the title, in the snippet, in the URL to see if there was a correlation with higher sales. And without a doubt the correlation between a query with a brand term and an advertisement with a brand term is extremely, extremely positive. That particular tightness seems to resonate with online consumers.

Gord:
So just to repeat, so if somebody’s using a branded query and they see that brand appear in the advertising, there’s obviously a statistical correlation between the success of that, right?

Jim:
Yes. In that particular case, one, that the click will happen, and two, that the click will result in a sale was yes, very positive. It really relates to the whole idea of dynamic keyword insertion in advertisements…

Gord:
So to follow that thread a little bit further, obviously if people have a brand in mind and they see that brand appear, then that’s an immediate reinforcement of relevancy. But what happens if the query is generic in nature, it’s for a product category, but a brand appears that people recognize as being a recognized and trusted brand within that product category? Did you do any analysis on that side of things?

Jim:
Not specifically. No, I did not. That’s a real good question though, but no, I did not do that type of correlation.

Gord:
The last thing I want to ask you about today, Jim, is this idea of personalization by gender. I believe from our initial discussions that you’re just in the process of looking at the data from this portion. Is that right?

Jim:
Well, we finished the analysis. Now we’re just writing it up.

Gord:
So is there anything that you can share with us at this point?

Jim:
Again, the results to me were counterintuitive from what I expected. Usually, the idea of personalization is that the more personalized you get, the higher the payoff, the efficiency and effectiveness is. We took queries from this particular search engine marketing campaign and classified them based on gender probability using Microsoft’s demographic tool, which will classify a query by it’s probability of being male or female. We looked at it this way: now whether the searcher was male or female but did the particular query fit a gender stereotype – did it have a kind of a male, for example, feel to it or stereotype implications.

Gord:
So more women would search for “Oprah,” and more men would search for “NASCAR”?

Jim:
Exactly.

Gord:
What did you find?

Jim:
In terms of sales, far and away the most profitable were the set of queries that were totally gender-neutral. We took the queries and divided them into seven categories: “very strongly male,” “generally male,” “slightly male,” “gender neutral,” “slightly female,” “strongly female,” “very female.” By two orders of magnitude, the most profitable were the ones that were totally gender-neutral.

Gord:
Fascinating.

Jim:
Yes, as a researcher who does personalization research, my guess would be “Ah, the more targeted they are, the more profitable.” But no, the means were two orders of magnitude different.

Gord:
So give us an example of a gender-neutral query.

Jim:
We defined gender-neutral to be were queries that the Microsoft tool classified somewhere between-  exactly gender-neutral is zero – up to like 59% either side. So we had a fairly big spread here. And there was a trend that was somewhat expected –  that the queries that were more female-targeted generated higher sales than the corresponding male counterparts.
So here’s some examples of queries based off the Microsoft tool:  “Electronic chess,” 100%. You know, the Microsoft tool classified that 100% male. For a gender-neutral query, I’ll just randomly pick up a couple here: “Atomic desk clock.” “Water purifier.”

Gord:
I know you’re just writing this up now, but any ideas as to why that might be?

Jim:
One thing that is coming out in the personalization research is that at a certain level, we have totally unique differences. You can personalize to a general category and to a certain level, but beyond that, it’s either not doing much good or may actually get in the way. And that may be something that is happening here – that these particular, very targeted gender keyword phrases are just not attracting the audience that the more gender-neutral queries and keywords are.

Again, it’s a “why” thing.  We spend a lot of time in web search trying to personalize to the individual level and really haven’t got very far. But now people are trying to do things like personalize to the task rather than the individual person, and there’s some interesting things happening there. Spell checks and query reformulations and things like that are very task-oriented rather than individual searcher oriented.

Gord:
I remember Marissa Mayer from Google saying that when Google was looking at personalization, they found by far the best signal to look at was what’s the string, what immediately preceded the search or a series of search iterations. They found that a much better signal to follow than trying to do any person-level personalization, which is what you’re saying. If you can look at the context of the tasks they’re engaged in and get some kind of idea of what they’re doing or trying to accomplish in that task, that’s probably a better application of personalization than trying to get to know me as an individual and to try to anticipate what I might say or query for any given objective.

Jim:
Yes, It’s just so hard to do. You know, Gord is different than Jim, and Gord today is different than Gord was five years ago. Personalizing at the individual level is just very difficult and may not even be a fruitful area to pursue.

Gord:
I remember when Google first came out with talking about personalization there was this flurry around personalization in search. That was probably two, two and a half years ago and it really seems to have died down. You just don’t hear about it as much. And at the time I remember saying that personalization is a great thing to think of in ideal terms – you know, it certainly would make the search experience better if you could get it right or even half-ways right, but the challenge is doing just that. It’s a tough problem to tackle.

Jim:
Yes, and as you mentioned earlier, we’re nonlinear creatures, we’re changing all the time. I can’t even keep up with all my changes and I can’t imagine some technology trying to do it. It just seems an unbelievably challenging, hard task to do.

Gord:
I think the other thing is – and certainly in my writings and readings this becomes clearer and clearer – that we don’t even know what we’re doing most of the time. We think we have one intent but there’s much that’s hidden below the rational surface that’s actually driving us. And for an algorithm to try to read something that we can’t even read ourselves is a task of large magnitude to take on.

Jim:
That’s a really good way of looking at it. I’ve commented on that before in terms of recommending a movie or book to me. I don’t even know what books and movies I like until I see them. Sometimes I pick up a book and say, “Oh, I’m going to really love this,” only to get a chapter into it and realize “Okay, this is horrible.” And I think you see that in the NetFlix challenge –  So many organizations have laboured for a decade now, and finally it looks like perhaps this year someone may win by combing 30 different approaches simultaneously to the very simple problem of “Recommend a movie. It’s just amazing the computational variations that are going on.

Gord:
Amazon has obviously been trying to do this. They were one of the first to look at collaborative filtering and personalization engines, and they probably do it about as well as anyone. But even then, when I log on to Amazon, it’s not that they’re that far off base in their recommendations to me, but given what I buy on Amazon, it’s like they’re dealing with this weird fragmented personality because one time I’m ordering a psychology textbook because it has to do with the research I’m doing for something and the next time I’m turning around and ordering a DVD box set of The Office or even worse, the British version of The Office which really throws it for a loop.

Jim:    [laughs]

Gord:
Then I’m ordering a book for my daughter like Twilight.  Amazon is going, “I don’t know who this Gord Hotchkiss is, but he’s one strange individual.”

Jim:
From my interaction with Amazon, the recommendations I have found most effective are “You bought this book. Other people that bought this book bought these books” which I view as a very task-oriented personalization. And the other is a very broad, contextual one, “Here’s what other people in your area are buying,” which fascinates me. It’s almost like a Twitter, Facebook, social networking thing: “Oh, wow. I like that book,” you know? These task-oriented context personalizations, at least in my interactions, have been the most effective.

Gord:
You obviously bring up that intersection between social and search, which is getting a lot of buzz with the explosion of Twitter and the fact that there’s now real-time search that allows you to identify patterns within the complexity of the real-time searches. We’ve known in the past in other areas that generally those patterns as they emerge can be pretty accurate, so that opens up a whole new area for improving the relevancy of search.

Jim, one last question while we’re talking about personalization. This is something I wrote about in an article a little while ago and I’d love to get your take on it as the last word of this interview. We were talking about personalization and getting it right more often, and the fact is the way we search now, engines can be somewhat lax in getting it right. There’s a lot of real estate there, we scroll up and down. The average search page has something between 18 and 20 links on it when you include the sponsored ones. It’s more like a buffet: “We’re hoping one of these things might prove interesting to you or whet your appetite.” But when we move to a mobile device, the real estate becomes a lot more restrictive and it becomes incumbent on the engines to get it right more often. We can’t afford a buffet anymore, we just need that waiter who knows what it is we like and can recommend it. What happens with personalization as the searches we’re launching are coming from a mobile device?

Jim:
That’s a great question. I think it’s one of those areas that have got a lot of talk – everybody is saying (again) “This is the year mobile searching’s going take off.” It’s been going on for four or five years now, and really, I mean at least here in the US, it hasn’t really happened yet. But what I think is going to make it hit the mainstream is this combination of localized search.
When you have a mobile device, the technology has so much more information about you: it’s got your location to within a couple feet, the context that you’re in can really start entering the picture and information gets pushed to you –I’m thinking tagged buildings and restaurants and cultural events and on and on. And so with my mobile device, where I can talk into it, I don’t even have to type anything. I want “what’s going on in the area?” and it automatically knows my location and the time and perhaps something about me and the things that I’ve searched on before. “Oh, you like coffee shops where there’s some music playing. Guess what? Boom. There’s five right near, in your area that have live entertainment right then.” So I think in that respect it’ll be a little more narrowed search, but the technology will have so much more information about us that in a way it makes the job easier. The problem’s going to be the interface and the presentation of the results.

Gord:
We’re talking about, you know, subvocalization commands and heads-up display. You start looking at that and say, “Wow, that would be pretty cool,” but…

Jim:
Yes. Imagine being able to walk through a town … I live in Charlottesville, Virginia. Tons of history here from 400 years ago when Europeans first settled here, Thomas Jefferson, James Madison, etc., etc. Being able just to walk down Main Street and have tagged buildings interface with my mobile device… I’m a big history buff and so getting that particular information, one, pushed to me or at least available to push when I ask for it is a wonderful, wonderful area of personalization. This idea of localized search and mobile devices and mobile search may be the thing that brings it all together and makes mobile search happen.

Gord:
It’s fascinating to contemplate. And I know I promised that was going to be my last question, but I’m going to cheat and squeak one more in, and it’s really a continuation. You remember the old days of Longhorn with Microsoft, when they were working what eventually became Vista. They were talking about building search more integrally into everything they did and they had this whole idea of Implicit Query – which really excited me because if anyone knows what you’re working on at any given time, it should be Microsoft, at least on the desktop. They control your e-mail, they control your word processing, they control your calendar. If you could combine all this… all those as signals – the document you’re writing and the next appointment you’ve got coming up and the trip you’re taking tomorrow – imagine how that could intersect with search and really turn into a powerful, powerful thing. I remember saying…this was years ago… “That could kill Google. If Microsoft can pull this off, that could be the Google killer.” Of course we know now that that never happened. But if we take all that integration and all that knowledge about what you’re doing and what you’re doing next and where you are and move that to a mobile device, that’s really interesting. In looking at where Google is going, introducing more and more things that compete directly against Microsoft… is that where Google’s heading, to become our big brother that sits in our pocket and continually tells us what we might be interested in?

Jim:
You know, the “Big Brother” idea label has certain negative connotations, so I don’t want to say that they are Big Brother-ish in that regard. But certainly I think with their movement into free voice and free directory assistance, they will soon have a voice data archive that will allow them to do some amazing things with voice search, which would be an awesome feature for mobile devices. Being able to talk into a mobile device, have it recognize you nearly 100% of the time and execute the search.
Google of course is the one that knows what they’re doing, but certainly I think it would be naive not to be exploring that particular area. And I think the contrast from what you said about Microsoft and the desktop, the desktop is just so busy. You’re getting so many different signals in terms of business, personal things, my kids use my computer sometimes. And so the context is so large on the desktop, but the mobile device, it’s narrower. You know, you have some telephone calls, you can do some GPS things, so the context is narrower but very, very rich in that very narrow domain. I think it’s a really hot area of search.

Print or Screen: The Zen of Reading

A very interesting post landed in my in-box yesterday. It came from The Chronicle of Higher Education and it looked at a recent paper by Anne Mangen in the journal of Research in Reading (2008, pp. 404 – 419), titled “Hypertext fiction reading: haptics and immersion.” (I know..absolutely gripping title)

Mangen touches on a fascinating aspect of reading, specifically, the tangibility of reading. The look, feel, heft and smell of a book vs. the disembodied experience of reading from an electronic screen: “Unlike print texts, digital texts are ontologically intangible and detached from the physical and mechanical dimension of their material support, namely, their computer or e-book (or other devices, such as the PDA, the iPod or the mobile phone”

I’ve always disliked reading from a screen. Often, I even print off documents so I can review the old fashioned way. And I love books. If you want to want me to crack like a cheap plastic wine glass at a family reunion, put me in a room for an hour with no reading materials. I’ll be pacing in a cold sweat in a matter of minutes. I have multiple screens I can read from, and have read a few e-books, but the experience for me is a mere shadow of that feeling of turning a physical page (this, by the way, is what Mangen means by “haptics”).

Mangen says that the technology that enables digital reading actually gets in the way of a pure imaginative rendering of a fictional world. A print book has no distracting technology. A Kindle or iPhone does. These are some pretty heady concepts, but they touch on that vague feeling of dissatisfaction I have whenever I read something in digital form. I just don’t like it as much as a book, so while the rationality of keeping hundreds or thousands of books on my iPhone appeals to me, I still have several bookshelves and cardboard boxes full of books at home. Amazon loves me..a lot!

This whole topic becomes more material to me as I’m getting ready to self-publish my own book. Amazon will be producing the print version, but there will also be an electronic version. I wonder if my preference for paper is a generational thing. One of the topics I explore in the book is the difference between Digital Natives (people born after 1985 who grew up with digital technology) and Digital Immigrants (people born before 1985 who adopted digital technology as adults). Or is it deeper than that? Do we have some inherent bond with books? Do women feel differently than men?

I’ve launched a quick survey to explore this further. It’s only three questions long, so will take you about 40 seconds. I’ll share the results in a future post.

The Library of Human Behavior: 11 More Titles for Your Reading List

First published October 22, 2009 in Mediapost’s Search Insider

Last week, I shared 11 titles that explore the intersection between marketing, psychology and neurology. In retrospect, though, I think I approached this backwards. While the titles I discussed are all interesting (and fairly easy reads), they are somewhat dependent on a fundamental understanding of why humans do what we do. So this week, I’ll share a good starting library of human behavior, which can then be applied more generally.

“The Moral Animal: Why We Are the Way We Are”  — Robert Wright.  If you’re on the fence about or simply do not believe in evolution (along with 50% of Americans) you probably want to stop right here. The first three titles in this list are by authors who together create a pantheon for evolutionary psychology and Darwinism. In the first,  “The Moral Animal,” Wright employs an interesting literary device: exploring human behavior by referencing biographical details in Charles Darwin’s own life. He discusses monogamy, child rearing, differing attitudes towards sex and self-deception, among many other mysteries of the human condition. A compelling and highly intelligent read.

“The Selfish Gene” — Richard Dawkins. This book was first published over 30 years ago, and somehow still manages to remain controversial. Perhaps it’s because Dawkins’ assigning the human characteristic of selfishness to our genes has confused many, many readers. If you take the time to read the book, Dawkins explains at length that humans are not necessarily selfish. In fact, one chapter is titled: “Nice Guys Finish First.” Dawkins’ premise is that our genes only care about propagation. That’s it. End of story. Morality and all the ethical trappings that go with it only survive if they help the gene meet this one objective.  A couple of other noteworthy nuggets in this book include the first introduction of memes — ideas that share the propagation directives of genes — and an exploration of how the impact of genes can extend into all aspects of our lives and society.

“The Third Chimpanzee” — Jared Diamond. Diamond starts off the book by stating that we share 98% of our genes with chimpanzees, then spends the rest of the book describing how that remaining 2% can make all the difference. In that thin wedge of genetic difference lie all our culture, achievement and history. Some human achievements are admirable, even remarkable. Some are regrettably base and cruel. Diamond chronicles both the good and the bad, along with a warning: our dominance of our world may end up spelling our doom. A professor of geography who combines the eye of a naturalist, the curiosity of a sociologist, and the ponderings of a philosopher, Diamond makes “The Third Chimpanzee” a masterful book.

“The Stuff of Thought” — Steven Pinker. Following in the steps of Noam Chomsky (up to a point), psychologist Steven Pinker uses language as a door to explore the shadowy recesses of how our minds work. This book is a seminal piece of work in this area. Pinker is masterful at exploring complicated concepts without “dumbing down” his commentary.  He has written an entire library of books worth reading, but this is as good a place to start as any.

“Descartes’ Error” — Antonio Damasio. Damasio was introduced to the common masses in Malcolm Gladwell’s book “Blink,” but Damasio’s work on somatic markers and the role of the prefrontal cortex in how we make decisions goes much further than Gladwell was able to cover. “Descartes’ Error” delves deep into our gut instincts, explaining why pure rationality is an unworkable model for humans. To paraphrase Descartes’ famous quote: We feel, therefore we are.

To round out my 11 suggestions, here are six other titles worth exploring:

“The Mind and the Brain” – Jeffrey Schwartz

“Synaptic Self” – Joseph LeDoux

“A Whole New Mind” – Daniel Pink

“Mapping the Mind” – Rita Carter

“The Emotional Brain” – Joseph LeDoux

“The Female Brain” – Louanne Brizendine

The Meeting of the Mind and Marketing: 11 Books to Read

First published October 15, 2009 in Mediapost’s Search Insider

It’s official! With this column, I break David Berkowitz’s Search Insider column count record, with 225 of my own. And to commemorate the occasion, I wanted to follow up on a request that came in response to my column two weeks ago. I had warned any would-be students of human nature that this wasn’t a quest to be taken lightly. A few readers responded by asking for a recommended reading list.

So this week, I went through my bookshelf at home and jotted down a list of titles that I found particularly insightful or interesting in understanding the human condition. Today, I offer them as suggestions for some fall or winter reading. I came up with 22 titles, so I’ve broken them into two groups. This week, all the titles are specifically for those who want to explore the intersection between marketing and the way our minds work.“How Customers Think” — Gerald Zaltman. Harvard professor Gerald Zaltman has carved out a nice little career by exploring the psychology of consumerism. The foundation of Zaltman’s approach is his metaphor elicitation technique. Metaphors are linguistic keys to some of the darker workings of our mind, and Zaltman shows how these can be used as a Rosetta stone to unlock consumers’ true feelings towards brands and products. A fascinating approach suffers a little from Zaltman’s dry and overly academic writing style, but it’s a very worthy candidate for the list.

“The Culture Code” — Clotaire Rapaille. If Zaltman is a little stodgy and academic, Rapaille is an unabashed French nouveau-riche pop psychologist who has used his decidedly qualitative approach to dig down to the cultural common denominators behind our brand relationships. This book looks for those labels cultures apply to some of the best-known brands in the world. Being French, Rapaille brings an occasionally charming European cultural arrogance to his subject (i.e. in France, the culture code for cheese is “alive”, but in the U.S. it’s “dead”). This is  an easy and interesting read; while you might have some quibbles with Rapaille’s findings, he has plenty of willing customers among the Fortune 500.

“Buy-ology” — Martin Lindstrom. Lindstrom’s ego is almost matched by the insight he brings in his latest book. Lindstrom is the self-styled guru of brand perception and has written before on how our senses interpret brands. In “Buy-ology,” he goes one step further and launches an extensive brain scanning research project to see exactly what happens in our brains when we think about brands. For example, do the warning labels on a pack of cigarettes have any impact on our desire for a smoke? Does product placement really work? (The answer, in both cases, is no, according to Lindstrom) Don’t worry about getting caught in academic jargon here. Lindstrom keeps it light and readable.

“Why Choose This Book?” — Read Montague. Baylor University neurologist Montague was behind the original Pepsi Challenge fMRI test — and in this book, he takes on no less a challenge than explaining how we make decisions. The writing style’s a little uneven, as Montague tries to balance his academic background with a style overly determined to appeal to a wider audience. That said, Montague knows his stuff and the insights here are solid, supported by both his own and others’ research.

“Predictably Irrational” — Dan Ariely.  Ariely follows in the footsteps of behavioral economists Daniel Kahneman and Amos Tversky by looking at some of the common irrational biases of humans. For example, why does a 50-cent aspirin eliminate a headache better than a 5-cent generic brand, even though the pills are identical? And why would offering your mother-in-law $300 for a fabulous meal be an unforgivable social transgression, yet be expected in a restaurant? The territory has been covered before, but Ariely deals with a highly interesting topic with a nice, light touch.

“The Mind of the Market” — Michael Shermer. Last but not least, Michael Shermer delivers what I consider to be a tour-de-force on this topic. Shermer’s approach is well-grounded in evolutionary psychology (he labels it evolutionary economics), so he and I share a common approach to understanding consumer behavior. He strikes the right balance in his writing, delivering solid information without worrying too much about how it might play for a wider audience. This is probably my favorite on this list.

If these six titles whet your appetite, here are some other titles you might consider:

“Driven” by Paul Lawrence and Nitin Nohria

“Why We Buy” by Paco Underhill

“The Paradox of Choice” by Barry Schwartz

“The Advertised Mind” by Erik Du Plessis

“Brain Rules’ by John Medina

Next week I’ll share another 11 books, as well as some reader suggestions. Feel free to keep the suggestions coming!

The Prerequisites for Being a Student of Human Nature

First published October 1, 2009 in Mediapost’s Search Insider

Last week I asked for input on the upcoming Search Insider Summit. Of the seven possible topic areas I presented, the highest level of interest was in the role of human behavior in digital marketing. You, the Search Insider faithful, have made me very happy. But being an avid student of human nature, I feel it’s only fair to warn you what to expect as you continue down this path.  Some years ago, I too was intrigued by human behavior and thought it would be interesting to “learn a little bit more.” But learning about human nature is pretty much an all-or-nothing proposition. Think of it as having a baby. The first few minutes of the process might be fun, but soon you learn you’ve just signed on for a lifetime commitment. You’d better make sure you’re ready.

The True Meaning of Customer-Centricity

I’ve been criticized in the past for using the term “customer-centric” (the practical application of studying human nature), but I suspect it’s because the term has lost its original meaning as it’s been adopted into the lexicon of “Dilbert-speak.” Customer-centric is one of those terms bandied about in board meetings and corporate retreats, along with “synergistic” and “holistic.”

But customer-centricity represents much more than a quick paragraph in the annual report. It’s the core you build a company around. It’s a commitment that lays the foundation for everything an organization does: the people it hires, the way it develops products, the way it formulates business processes, the way it markets and even the way who sits beside whom in the office gets decided. Customer-centricity is a religion, not a corporate fad.

There Aren’t Any Shortcuts

As I found out, if you are going to commit to learning more about human behavior in the goal of becoming a better marketer, don’t be surprised when you discover that this commitment can’t be met in a one-hour session or by reading a book. Humans are a lot more complex than that. There’s a lot of weird and wonderfully quirky machinery jammed in our skulls.

I was humbled to learn that people devote their entire lives to exploring just one tiny part of why we humans do what we do. Joseph LeDoux, one of the world’s foremost neuroscientists, has spent years exploring how fear is triggered in rats. Ann Graybiel  at MIT has made a similar commitment to exploring the role of the basal ganglia in how habits form and play out.  Antonio Damasio’s  extensive work with patients with pre-frontal cortical lesions led to his somatic marker theory, foundational insight into the area of human behavior Malcolm Gladwell explored and popularized in his book “Blink.” These are all tiny little pieces in the overall puzzle that is human behavior, yet each of these is integral in understanding how we respond to marketing messages.

Beyond the Cocktail Party Quip

Today, several years after I started down this road, I hope people find my insights on human behavior interesting. There’s that brief light bulb moment that happens when “what” is matched with a plausible “why” — when a psychological or neurological trigger for a puzzling human trait is identified.  “Hmm – that’s really interesting,” is the common response, and then it’s on to the next thing (possibly mumbling something about me being a “pedantic bore”). Yes, it is really interesting, but it wasn’t a quick or easy path to get here.

Sometime ago I decided a quick primer in human behavior would be interesting. I started with the more accessible books (such as Gladwell’s) and was instantly hooked. I next moved to books by academics doing the actual research that provided the fodder for Gladwell and other’s popularizations: LeDoux, Damasio, Edelman, Rose, Pinker, Chomsky and others.  Before I knew it, I was wading through academic papers. Today, the bookshelf in my home office is packed with fairly hefty tomes on everything from evolutionary psychology to the social patterns of the 20th Century. My wife and kids can’t remember the last time I read a book that didn’t have a brain on the cover.

I share this as a warning. I discovered developing even a basic understanding of human behavior is at least a multiyear commitment. I’ve never regretted it, but I also know that this is not everyone’s cup of tea. But here’s what I also discovered along the way. Even a basic understanding will give you a whole new perspective on pretty much everything, including marketing. The one common denominator in all marketing is that it’s aimed at people. If you’re ready to start the journey, I’m sure you won’t regret it.

Do We Need a Different Kind of Search Conference?

First published September 17, 2009 in Mediapost’s Search Insider

Something’s been bothering me for the last few years. In that time, I’ve probably spoken at two to three dozen industry events: trade shows, summits, conferences and workshops. In fact, this week, I’m at one such event – a user summit. Throughout that entire time, I’ve felt that there’s a fundamental disconnect at these events. And this week, I think I’ve finally put my finger on it: the wrong people are attending.

Let me give you one example. Earlier this year, I was at a client’s internal summit, talking about the importance of “Getting It.” I looked at the 100-some assembled people, responsible for driving forward the digital strategy of this company, and asked the fateful question, “How many people here are senior C-level executives in the company?” Not one hand went up. Oops! Houston, we have a problem.

Where are the Actionable Takeaways?

Most of the events I speak at focus on giving attendees actionable “to-dos” to take home. In fact, I’ve been told time and again: give people a list of things they can do Monday when they get back in the office. That makes sense. Conference organizers have learned that attendees find the most value in these things. Yet I tend to ignore the advice of these conference organizers and talk about things like research, understanding buyer behavior and how this integrates into marketing strategy.

Increasingly, I’m seeing more confused looks in the audience:
“Where is my top ten things-to-do checklist? This guy is just giving me more questions, not answers.” This disappointment bothers me, because at my heart, I desperately seek approval.

But, in those sessions, after the rest of the crowd has dispersed to look for a speaker with a list of things they can do Monday, there are also a handful of people that come up to me and thank me profusely.  They seem to operate at a different level: a strategic level. I’ve seen this pattern over and over again, and as I said, it’s been bothering me.

Are the Takeaways Really Actionable?

Here’s the biggest thing that bothers me. My suspicion, borne out by several conversations with people that attend these shows, is that very few of these “to-do” tips that make the list ever get implemented. Months later, they still sit somewhere in a conference handbook, quickly jotted in a margin. Stuff just doesn’t get done. Why?

The people that attend these conferences don’t control their to-do lists. On Monday, their list gets put aside to respond to the all the other things they have to do — because they’re not calling the shots. The to-do list is being determined by priorities that have been put in place somewhere else by someone else. People come back from conferences with a list of “what” to do, but unfortunately no one told their bosses “why” they should do it. The bosses don’t often go to search conferences.

Less “What” and More “Why”

“Why” doesn’t come from to-do lists. “Why” comes from seeing things in the big picture. “Why” comes from “getting it.” The people who go to search shows already get it. That’s why they have the job they do.  You don’t have to explain to them why this “what” stuff is important. They understand at a fundamental level. But eventually they leave the conference hall, full of other people who get it and with whom you’ve swapped stories about how your boss desperately doesn’t “get it.” Monday, you’re plunged back into a culture where “what” is not aligned with “why.”

There are no easy answers here. Even if you have that rare CEO or boss who gets it, you need a fully integrated culture that is committed to executing at the highest level of “getting It” from top to bottom. Everyone in the company has to agree on the “why” and the “what.” And I’ve yet to see a conference or summit that manages to pull that trick off.

A Tale of Two Houses

First published May 21, 2009 in Mediapost’s Search Insider

I have a difference of opinion with Gian Fulgoni, chairman of comScore. Actually, it’s not so much a difference as a question of context. He believes there’s room for more visual branding on the search results page. I believe this is a potentially dangerous area that has to be handled very carefully on the part of the engines.

This issue came up during the opening session of day two at the recent Search Insider Summit, when I posed a question  two different ways to the audience. First, I asked them, as marketers,  how many would like to see richer branding opportunities on the results page. Almost every hand went up. Then I asked them the same question, but this time as users. Some hands went down immediately. Many others wavered noticeably, as the paradigm shift exposed underlying hypocrisy. Others remained resolutely high on the idea.

The reason for the mixed reaction was that, for users, the ideal search experience depends on the context of the situation. Visually richer is not always better. There’s some subtle psychology at play here. So let’s explore it in a story.

It’s a Wonderful Day in the Neighborhood

Imagine we both live on the same street. In fact, we’re next-door neighbors. I travel a lot. I happen to know you might be thinking of taking a vacation this summer. So begins the story of My House and Your House:

Your House

In this story, the reason I travel a lot is because I’m a commissioned travel agent. I get paid if I book you on a trip somewhere. And you don’t know it, but I get paid a lot more if you go to Disney World. So every morning, I come over to your house and knock on your door wearing my Mickey Mouse ears, carrying in one hand a portable stereo blasting “When You Wish Upon a Star” and in the other a fistful of Disney travel brochures. Each day, I visit with a determination to book you on the next flight to Orlando.  Now, if Disney is in your travel plans, perhaps this isn’t as obnoxious as it sounds. But if two weeks in the Magic Kingdom sounds as appealing as the Bataan Death March, my neighborly welcome will wear a little thin. Sure, I got your attention, but you also listed your house for sale shortly after my visit.

My House

Now forget all of the above. This time, I travel a lot because I’m worldly, adventurous and wise. I’m also wonderfully informative. Over the backyard fence, you mentioned that you might be thinking of taking a vacation this summer. In neighborly fashion, I invited you over for a coffee and to ask me any questions about past trips I’ve taken, in case any of my previous destinations might be appealing. You take me up on the offer and ring my doorbell. We sit down and I ask, “So, any particular areas you’re thinking of visiting?”

“Hmmm, I’ve always dreamed of the Mediterranean. Perhaps the French or Italian Riviera?”

“Cinque Terra is wonderful, so is Nice, Cannes and Monaco, but don’t rule out Spain or Portugal. I’ve been to them all.”

A House Divided…

Think of your reaction, first in your house, then in mine. As you no doubt realized, your house represents typical advertising; my house is search.

And the context is different in subtle but important ways. That’s why it becomes dangerous when we start trying to combine the two. In my house, you’re engaged and curious. You’ll ask me what I love about Portugal, or why I didn’t recommend Cannes more enthusiastically.  And you’ll trust me more if you know you’re getting my objective opinion. After I know a little about your preferred destinations, you might be interested if I introduce you to my friend, the travel agent.  You would even find that helpful. You’re open to a sponsored message, as long as it’s relevant to your interests and fits into the rules of the overall experience.

All this gets to the context of my difference of opinion with Gian. Visual richness is appropriate if it’s relevant and welcome. It’s annoying if it’s intrusive. And that line would be in the control of the engines and the advertisers.

If I come to your house uninvited, my job is to convince you to open the door. But if you come to my house, my job is to inform and help. You came through the door on your own. The house we live in is a great place, but there are rules we have to live by. Otherwise, no one will come to visit us.

The Confluences of Spring Break

First published March 26, 2009 in Mediapost’s Search Insider

It’s funny. Given three disparate ideas and enough time out of the office, I can somehow manage to tie it all together into a Search Insider theme. The ingredients for this column? The two books I chose to pack to read on my Spring Break vacation, and a bit of history from Southern Portugal, where I’ve spent the past week.

Odd Man Out

The first book was Malcolm Gladwell’s latest, “Outliers” (chosen primarily because reading Gladwell doesn’t seem like work at all, a key criteria for vacation reading). In typical Gladwellian fashion, he takes a central idea — the outliers that fall beyond the bell curve aren’t there solely because they’re on the thin edge of pure statistical probability — and explores it with a mix of story telling, research and undeniably compelling writing.  If one can excuse Gladwell for his “Just So” tendencies, putting his ideas across from his single perspective, with a rather fast and loose selection of supporting arguments, it made for a painless and fascinating read.

In “Outliers,” Gladwell looked at statistical oddballs as diverse as Bill Gates (in terms of success), The Beatles (again, success),  Chris Langan (a genius with an IQ of 195 who never made it through university), Korean Airlines (for the frequency of crashes in the ’80s and early ’90s), a small town called Roseto in Pennsylvania (where everybody lives longer than they’re supposed to, statistically speaking) and the hockey players that make it to the WHL (Western Hockey League) and eventually, the NHL (like me, Gladwell also grew up in Canada).

Luck is What You Make It

Gladwell’s point, which he makes persuasively, is that these things are not simply a matter of odds or blind luck. There are distinct patterns of influence that tend to create outliers. They include your socioeconomic status, your culture, your upbringing and even your birthday. Here is a smattering of Gladwell’s reasonings:

·     NHL hockey players make the big leagues because they’re born early in the year, physically dominating their age groupings in minor hockey, advancing to rep teams, thereby getting more coaching and ice time.

·     Bill Gates, through a series of lucky occurrences, managed to amass 10,000 hours of programming experience as a child and teen at a time where access to computers was very hard to come by.

·     The Beatles jumped ahead of their contemporary competition because the 8-hours-a-day, 7-days-a-week performing schedule in Hamburg ground down their rough edges and smoothed out their act.

·     Korean Airlines had an abysmal safety record because Korean culture made it taboo to question the wisdom of the pilot, even if he had the plane heading directly into a mountain

·     Chris Langan was born with one of the highest measured IQs in America, but was also born poor and disadvantaged, leaving him without the social skills required to successfully navigate through university and on to adult success.

Gladwell’s conclusion Luck, either good or bad, isn’t simply left to chance.  And even inherent gifts, like Langan’s IQ, aren’t a guarantee of success. Luck can be manufactured. The conditions for success can be consciously put in place in a system where the desired outcomes are known. So, what are those outcomes? That brings me to the second book I brought on vacation.

Welcome to Kurzweil’s Singularity

Ray Kurzweil is definitely out there. This is a man who takes 250 nutritional supplements every day and gets seven blood transfusions every week so he can re-engineer his body to live longer. He believes humans and computers will merge in the next few decades, vastly pushing back the known limits of human intelligence, an event he calls the Singularity.

My other book was Kurzweil’s “The Singularity is Near” — a book chosen primarily for its heft of over 600 pages. I knew it would keep my busy through to the end of my two- week vacation. A quick summary of Kurzweil’s predictions from the book might lead one to question his mental stability:

–       Physical bodies will become essentially meaningless in the next century, as we will live in a virtual world with physical representations of our own design.

–       Table top “nanofactories” will create everything we’ll need, atom by atom, from a lump of raw materials.

–       We will upload our personalities to a computer, thereby living forever.

–       Technological evolution has taken over from biological evolution, giving humans the freedom to design our future.

–       Aging and disease are a few decades away from being conquered forever.

–       Nanobots will allow us to control every element of our environment,  eliminating pollution.

Kurzweil is manically optimistic about our future, and that future is not hundreds of years away. Most of Kurzweil’s seminal events happen before 2050. As the title of the book says, the merging of biology and technology is near (starting in 2030).

Just Crazy Enough to be Right

But Kurzweil is far from a quack. The reason for the imminent horizon is the rapid, exponential increase in the rate of technological advancement. Kurzweil is meticulous in pulling together the current state of affairs in areas including nanotechnology, robotics, artificial intelligence, genetic engineering and neuroscience to build a rock-solid foundation for his predictions.

Kurzweil’s view of the future is positively blinding in its enthusiastic brilliance. He is adamant that there is no problem that can’t be overcome with enough intelligence, a resource that will explode in abundance thanks to the Singularity.  And his track record is sound. Kurzweil’s predictions have been remarkably accurate in the past. It’s hard not to get caught up in his optimism. Even if it all doesn’t come to pass, Kurzweil paints a picture of a future worth striving for.

So, those are the first two ideas that converged over my Spring Break. Luck doesn’t just happen. We’re not held prisoner by some probabilistic crapshoot. And for the first time in memory, I saw a vision of the future that wasn’t predominantly pessimistic. I’ll leave it there for now. Next week, I’ll tell you the story of Portugal’s Henry the Navigator.

Don’t Think Recession, Think Resetting

I was listening to an interview the other day and heard the best piece of economic news I’ve heard in over 2 years. The person being interviewed was talking about changes in urbanization in North America and he said he doesn’t think of the current economic situation as a recession, he thinks about it as a resetting of the economy. That got me thinking.

His point was that in the two most dramatic economic pull backs in the last two centuries, there was a corresponding seismic shift in how we worked and how and where we lived. And after the pain of resetting, the world emerged and prospered for a significant period of time.

Consider the economic turmoil of the 1870’s. By all accounts the world was in economic ruin. The colonial empires of Europe were beginning their long, slow decline. The largest bank in the US, Jay Cooke and Company, failed. The speculative bubble after the civil war burst. Labor unrest was epidemic, leading to riots in Chicago, San Francisco, Pittsburgh and New York.

Or the Great Depression of the 30’s, the economic disaster that’s still only a generation or two away for most of us. A stock market collapse, followed by a banking collapse, followed by massive business closures and unemployment.

But the fact is, significant change and yes, advancement, came from both these periods. In the 1870’s, an agrigarian society moved to an industrial one, significantly increasing our production capabilities, creating the huge factories and huge relocation from rural areas to the dense urban centers. Immigration swelled North America with millions determined to create a better life. There was massive change, which always brings pain and unrest, but also advancement. One can’t seperate the two. They come as a package.

As the world emerged from the Great Depression and the Second World War, we began the move to the suburbs and the Great American Dream, brought to you by Kelvinator, Pontiac, Maytag and hundreds of other bread and butter brands. A second wave of immigration brought new dreams and aspirations to our borders.

Techonology always moves faster than humans. And, in the shift, entire societal frameworks have to be reinvented. This never happens incrementally or smoothly. History has shown us that existing infrastructures have to be torn down and new ones erected. Through the process, human emotions run rampant, which flood our ever so fragile economy. This has always been the way, and it will always be the way, because we are who we are. Our mental hardware hasn’t changed in thousands of years.

But in this reinvention, this resetting, we build the foundations for the next stage of our ongoing story. And in this regard, there are tremendous reasons for economic hope. If you rise above the micro view and look at the macro picture, the efficiency of the digital marketplace is extraordinary and will provide the greatest boost to our productivity in history. Forces of globalization are leveling wealth distribution and the tide is raising all boats. Science is on the verge of hundreds of life altering breakthroughs on almost every front. The global standard of living has never been higher, along with life expectancies and levels of education and health care. The challenges are not so much economic. There we just have to rebuild sustainable infrastructures to accommodate the new realities of enhanced potential and get rid of some nasty habits of over consumption. And while we’re working through the process we have to make sure we don’t rape our planet beyond repair.

The world is not in bad shape. We just have some significant house cleaning to do. This will not be fast (we’re in the middle of a huge transition shift, so think decades, not years) nor will it be painless. But if we handle it correctly, it could be the biggest jump forward in history.