Category Archives: Consumer Psychology

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.

Macro-Economics and Macro-Emotions

Another interesting article I ran into while cleaning out my inbox. Biometric monitoring research firm Innerscope tracked people’s emotions through vests that capture heartrates and other signals of emotional engagement while they were watching Super Bowl Ads. The objective: to see which ads got the biggest response from people. The results were interesting. The winners were Career Builder and Cash4Gold.

People are scared poopless by the economy and it’s impacting the ads we pay attention and react to. I’ve written before on the macro-emotional trends that dictate everything from the stores we shop at to the searches we launch. And now, it’s even edged in on the Super Bowl. What is interesting is that this is a self perpetuating trend. The economic news scares us, we spend less, the economy gets worse because no one is spending, the news gets worse… well, you get the idea.

Also saw CITI Analyst  Mark Mahaney at Covario’s InflectionPoint Summit in San Diego, who gave us an update on macro economic trends. The short version is..more bad news. He did have a silver lining for search marketers though, which lines up with what we’ve been seeing. Budgets from other channels are migrating into search. Mark gave us a quick and admitedly non scientific calculation of the categories most at risk, Yellow Pages, Print and TV, showed a total potential of $120 billion up for grabs. Of course, total migration is ridiculous. Search doesn’t work unless something is creating awareness, which creates search inventory. But still, that’s $120 B in ad budget that’s going to be scrutinized pretty carefully over the next year or two. It does make you think how much of that might leak into search.

Along the same lines, just got a preliminary glimpse at the SEMPO State of the Search Market Preliminary results. What we’re seeing seems to support Mark’s theory. Can’t go into specifics right now, but if you’re at SMX in Santa Clara next week we’ll be sharing some preliminary findings. I think I’m scheduled on Day One for that session. Drop by if you have a chance.

Chasing Digital Fluff – Who Cares about What’s Hot?

Marketers are falling over themselves in their rush to the digital landscape. Social media is SO hot! But not as hot as behavioral targeting. And if you think that’s hot, wait till you see what you can do with mobile!

The Digital Dogpile

blow-dandelionMarketers desperately scramble over each other, grasping for a tenuous handhold on some emerging tactic that gives them, however briefly, a fraction of an inch advantage over the competition. New digital marketing directors prove their worth through their savvy of online technology. They cut their teeth on Facebook advertising and put Powerpoints (or, because they’re uber-cool – Keynote presentations) together on the immense potential of the social graph.

Churn is the norm in digital marketing. And marketers are the worst, whipping the industry into a froth because they get all breathless about the latest thing. My inbox gets a hundred emails every single day talking about how freaking cool everything is and how we’re stumbling to figure out the importance of everything. If you’re not an early adopter…scratch that…if you’re not a bleeding edge pioneer, you’re a hopeless loser. The pace of marketing testing and adoptions just keeps spinning faster and faster.

Step Away from the iPhone

Stop! Take a breath. Relax for a few minutes. Get outside and breath some honest to God fresh air. And don’t take your iPhone with you. Because here’s the scoop Kemosabe, all the technology in the world is useless until your audience figures out how to use it. And here’s the nasty little secret. Humans love bright shiny objects but we’re pretty slow when it comes to figuring out how to jam it into our already busy lives. Until that happens, your nifty online strategies will never be anymore than a pointless treadmill jammed on overdrive. You can run as fast as you want, but you’ll never get anywhere.

I do financial analyst calls every quarter and the last question on the call is always the same: anything else we should be looking at? Apparently, technologiosis (or technitis, or technophilia, take your pick) is contagious. My answer is usually the same..wait till people figure out how to use it.

Think about the buzz that’s been devoted to social networks and, more recently, real time search, in the last 2 years. That’s 2 years of foaming-at-the-mouth marketing buzz about how this channel is:

A) the savior of marketing
B) most effective connection with consumers
C) coolest technology without an identifiable purpose
D) biggest waste of time on God’s green earth
E) all of the above

The Geekiest Guy on my Block

Now, I’ll be the first to admit I don’t have a clue how to use social media in a meaningful way in my life. I have a Facebook page, I tweet, I have a Linked In profile, a Trip-It network, just to name a few, making me the geekiest guy I know. Maybe not at an online marketing show, but if you ever visit Kelowna, take a walk with me down my block and I’ll prove my techno-geek status is several Trekkie parsecs ahead of anyone else. I suspect the same is true for you. And you know what? I have no frigging idea why Facebook is important or why I should log into my profile today. It’s cool, but it’s not useful in an every day kind of way. And if I, who spend over 10 hours a day online and have a network of friends and colleagues that span the globe, can’t jam Facebook into my life in a useful way, how is the average techno-pleb going to?

As far as I can see, most of things marketers salivate over fall into the same category..digital candy that tweaks our dopamine supplying pleasure centre but serves no real, sustainable purpose in our lives. This puts it in the same category as 95% of my iPhone apps, 99% of the computer games on my laptop and the Wii my nephew got last Christmas – an obsession for approximately 27 hours, an occasional pastime for another 36 hours, then something we ignore for the rest of our lives.

The one difference, at least in my experience, seems to be teenagers. Most of things that seem to be passing fancies to us do seem to become useful in the lives of the average 15 – 23 year old. But, as I said in a previous post, when you look at what the live of a high school or university student looks like and what they want to do, a Facebook suddenly makes sense. For me, not so much.

An Eyeball is an Eyeball, Right?

So, even given this notorious degree of fickleness, why should marketer’s care? Eyeballs are still eyeballs, right? Even if the eyeballs we’re capturing this week will be completely different than the eyeballs we capture next week. This approach only works if you consider your market a faceless blob of unleashed consumer potential. If you actually want to get relevant messages to real people with real needs, the logic starts to break down immediately.

Effective marketing depends on reliable targeting. And reliable targeting depends on established patterns. And established patterns depend on sustained behaviors. And sustained behaviors depend on things we find useful. Otherwise, we’re marketing via fad, condemning ourselves to spending our professional lives and our client’s ad dollars chasing fluff in a hurricane. Our audience will always be “just passing through” on the way to the next thing.

I Miss Frank Cannon, PI

movies_070708_cannonMarkets have to stabilize in order for us to understand the individuals that make up that market. Also, brand relationships need a stable environment, allowing them to germinate and flourish.

When I was a kid, Kraft always sponsored Cannon. When you tuned in to see William Conrad somehow roll his fat old carcass out of his Lincoln Continental and pick off a sniper 3 miles away on a mountain top with his trusty .38 revolver, you could depend on Kraft telling you how to cook Mac & Cheese in every commercial break. Much as the entertainment value may have sucked (beggars with 2 channels in the Canadian prairies can’t be choosers) you knew Kraft would be there and Kraft knew who they were talking to. The audience had stabilized.

Until things pass through the temporary obsession phase to something that adds real value to our lives, we can’t consider advertising on these channels as anything more than an experiment. The trick in picking the right digital channels is not to look at the eyeballs they’re attracting today, but in how these things might be used in real, practical ways. That will give you an idea of how real people might be using these things next week or next month, when the technoratti have moved on to the latest bright shiny object.

Fear, Greed and the Google Parallax View

First published December 18, 2008 in Mediapost’s Search Insider

Greed is right.

Greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms — greed for life, for money, for love, knowledge — has marked the upward surge of mankind.

— Gordon Gekko, “Wall Street”

Yesterday, I listened to an interview with Canadian businessman Stephen Jarislowsky. Jarislowsky is one of Canada’s richest men, our version of Warren Buffet. And he said something simple but profoundly important in the interview: Greed is strong, but fear is stronger.

Gekko is right. Greed does drive us. It is evolutionary. It’s hardwired into us. Harvard professors Nitin Nohria and Paul Lawrence identified the drive to acquire as one of the four primary drives of humans But as Abraham Maslow pointed out, there is a hierarchy of human needs and drives, and fear will always trump greed.

Our society has been defined by greed but I don’t agree that greed is right. It forces a zero-sum mentality, which, due to the blessings of fate, has resulted in a inequitable division of resources for us here in North America. The world’s possessions are seriously out of balance, and there is no way to redistribute without severe pain for those that currently have the possessions. Bill Clinton has been warning us about this for years, and it’s now beginning to happen. That is the pain we’re just beginning to feel, and we’re afraid. So, our evolutionary transmission has geared down into the first gear of survival: fear.

The interesting thing about this, from our own little slice of the world, is that we see our collective human consciousness captured in the query logs of Google. As we switch from greed to fear, we see search volumes reflect that. That’s why, in the past year, we’ve seen number of searches for “recession” catch and surpass the number of searches for “mortgages.” We’ve gone from dreaming about acquiring to worrying about defending, and whatever we’re thinking about, we search for.

This is a powerful demonstration of the power of search. It shows just how accurate a barometer it is of our collective mood. And mood determines reality. Our emotions are the jet fuel of our drives. They are our internal guidance systems that keep us on track to realize our goals. Our emotions, in aggregate, swing the economy, and the nation with it, from boom to bust. And there’s no better indicator of that then the searches we do on Google. John Battelle had it right. Google is the database of our intentions.

There has been endless speculation about whether search will weather the financial crisis. The question is really not worth asking. The fact that search has so accurately reflected the shift of our confidence shows how essential it is. Yes, people will use it less to search for things to buy and use it more to search for ways to survive, which will impact advertising revenues and cause pain (and hence, fear). But it is what it is. The search patterns show who we are and what’s on our mind.

But there will also be an interesting side effect that search marketers will have to adjust for. Kevin Lee called it aspirational searches. Just because we go into defend mode doesn’t mean we stop dreaming. Greed can be pushed out of the driver’s seat temporarily by fear, but soon we start planning our escape. Fantasy is a favorite activity of ours. Look at the boom of the movie industry through the depths of the Great Depression. Even though we can’t afford a new car or a trip to Mexico, we can still pretend that we can, and this ersatz consumer activity will also show up on Google’s query logs, causing much head-scratching about the sudden drop in conversions.

We’ll adapt to the new reality and we’ll survive. That’s why fear exists. It allows us to marshall our resources and focus on the threat. And eventually, greed will once again turn on the tap. The balance between these two forces has been swinging back and forth for hundreds of thousands of years. But never before have we had such a clear view of how it happens, thanks to search.

P.S. Just realized, because of the way the holidays stack up on the calendar, that this is my last column for 2008. It’s been a true pleasure spending each Thursday with you talking about search, branding, the brain and anything else that crossed my mind. Thank you for listening (and responding). I look forward to picking up the conversation again in 2009!

The Elusive Goal of Ad Engagement

First published October 16, 2008 in Mediapost’s Search Insider

Last week, I talked about the nature of engagement and the neural mechanisms that underlie it. This week, I want to explore why those same mechanisms dictate that our search interactions are going to be completely different from engagement with a TV ad or a billboard.

The key thing to understand here is how we’re driven by goals. In a drastic oversimplification, goals are the objectives that drive our information processing modules, more commonly known as our brain. Our “mind” and all that we know about ourselves are shifting patterns of information being processed in these modules. At multiple levels, we sift through data, make decisions and initiate actions to get us closer to our goals.

Goal Interrupted

Most advertising is interruptive. It’s a detour on the road to our goals. The holy grail of direct marketing is to time delivery of the message so that it coincides with our pursuit of a goal. If you can get a realtor brochure to my doorstep at exactly the time I’m thinking of putting my house up for sale, you’ve substantially increased the odds of active engagement with your advertising message. But despite the advances in targeting methods, the odds of perfect coincidence are frustratingly slim. So advertising has to depend on other methods, like emotion, to trigger primal reactions and force suspension of current goal pursuit to engage with the message.

One of the comments on last week’s column, by fellow Search Insider Kaila Colbin, provides a perfect example of this. Kaila provided a link to a particularly powerful use of emotion in a TV ad from New Zealand Post. Now, despite the powerful emotional appeal, in a typical stream of ads inserted in a commercial block in network programming, the ad would still need to batter our way into our consciousness. With Kaila it succeeded once, hitting all the right emotional cues, and so her subconscious has been primed to respond to this ad should it appear on the radar screen of her constant scanning of her environment. In Kaila’s case, she would rush to the TV to change the channel, preventing her from dissolving into a messy puddle of tears.

Active Engagement

But by drawing our attention to the link, Kaila set up a totally different nature of engagement. She embedded the concept in our working memory by allowing us to create a goal around the viewing of the ad. We were engaged with the concept on a totally different level. Watching the ad was the goal, so no diversion of attention was required. We were primed to pay attention by Kaila’s recommendation. This is the power of ads that go viral in social networks, like Dove’s Evolution.

This concept of attention is at the center of two targeting tactics that have proven effective in the online environment: behavioral and contextual targeting.

Engaging Tactics

With behavioral targeting, we track behavioral cues through clickstreams, hoping that it will improve our odds of presenting our advertising message at exactly the right time to coincide with our target’s pursuit of a goal. The well-timed presentation of an ad for Chinese hotel rooms at almost the same time I was planning a trip to China was an example I’ve talked about before. Because planning for the trip had recently occupied my working memory and presumably I hadn’t yet reached my goal (the trip wasn’t completely planned yet), this message stood a pretty good chance of being engaged with (despite the fact that it creeped me out a little).

Contextual targeting employs a different but related strategy. If advertising messages are about the same topics as the content that I’m engaging with, transference of that engagement should be easier than with unrelated topics. Indeed, at Enquiro we’ve found that engagement with these ads actually occurs at two levels. There’s the initial awareness of the ad and the subsequent decision to engage with the ad. We’ve found that awareness is often higher with non-contextually targeted ads, but engagement and recall is higher with contextual ads. I have my theories about why this is so (having to do with the nature of the creative and the interplay of active consciousness and selective perception) but that could fill up an entire column in itself.

Engaging Search

Finally, we have search. In my previous examples of online targeting, we’re still using our best guess about optimum timing based on some pretty broad assumptions: click streams provide an accurate measure of intent, and interest in content means interest in related advertising messages. These targeting methods simply improve the odds in what is still essentially an interruption in the pursuit of a goal. But use of search is inherently aligned with goal pursuit. Information gathering is a key subtask in the pursuit of many goals, and search is an important tool in our information foraging arsenal. The goal is firmly embedded in our working memory and we’re on high alert for cues relevant to our end goal. This is why information scent in search results is so critical. No diversion of attention is required. Our attention is firmly focused on the results presented on the search page (both paid and algorithmic), because we believe that one of those results will take us one step closer to the goal.

This concept of active engagement is key to understanding search’s role in branding. Next week, I’ll look at how our cognitive mechanisms digest the results on a search page.