Category Archives: Information Seeking & Foraging

Branding in the Post Truth Age

If 2016 was nothing else – it was a watershed year for the concept of branding. In the previous 12 months, we saw a decoupling in the two elements we have always believed make up brands. As fellow Spinner Cory Treffiletti said recently:

“You have to satisfy the emotional quotient as well as the logical quotient for your brand.  If not, then your brand isn’t balanced, and is likely to fall flat on its face.”

But another Mediapost article highlighted an interesting trend in branding:

“Brands will strive to be ‘meticulously un-designed’ in 2017, according to WPP brand agency Brand Union.”

This, I believe, speaks to where brands are going. And depending on which side of the agency desk you happen to be on, this could either be good news or downright disheartening.

Let’s start with the logical side of branding. In their book Absolute Value, Itamar Simonson and Emanuel Rosen sounded the death knell for brands as a proxy for consumer information. Their premise, which I agree with, is that in a market that is increasingly moving towards perfect information, brands have lost their position of trust. We would rather rely on information that comes from non-marketing sources.

But brands have been aspiring to transcend their logical side for at least 5 decades now. This is the emotional side of branding that Treffiletti speaks of. And here I have to disagree with Simonson and Rosen. This form of branding appears to be very much alive and well, thank you. In fact, in the past year, this form of branding has upped the game considerably.

Brands, at their most potent, embed themselves in our belief systems. It is here, close to our emotional hearts, which mark the Promised Land for brands. Reid Montague’s famous Coke neuro-imaging experiment showed that for Coke drinkers, the brand became part of who they are. Research I was involved in showed that favored brands are positively responded to in a split second, far faster than the rational brain can act. We are hardwired to believe in brands and the more loved the brand, the stronger the reaction. So let’s look at beliefs for a moment.

Not all beliefs are created equal. Our beliefs have an emotional valence – some beliefs are defended more strongly than others. There is a hierarchy of belief defense. At the highest level are our Core beliefs; how we feel about things like politics and religion. Brands are trying to intrude on this core belief space. There has been no better example of this than the brand of Donald Trump.

Beliefs are funny things. From an evolutionary perspective, they’re valuable. They’re mental shortcuts that guide our actions without requiring us to think. They are a type of emotional auto-pilot. But they can also be quite dangerous for the same reason. We defend our beliefs against skeptics – and we defend our core beliefs most vigorously. Ration has nothing to do with it. It is this type of defense system that brands would love to build around themselves.

We like to believe our beliefs are unique to us – but in actual fact, beliefs also materialize out of our social connections. If enough people in our social network believe something is true, so will we. We will even create false memories and narratives to support the fiction. The evolutionary logic is quite simple. Tribes have better odds for survival than individuals, and our tribe will be more successful if we all think the same way about certain things. Beliefs create tribal cohesion.

So, the question is – how does a brand become a belief? It’s this question that possibly points the way in which brands will evolve in the Post-Truth future.

Up to now, brands have always been unilaterally “manufactured” – carefully crafted by agencies as a distillation of marketing messages and delivered to an audience. But now, brands are multilaterally “emergent” – formed through a network of socially connected interactions. All brands are now trying to ride the amplified waves of social media. This means they have to be “meme-worthy” – which really means they have to be both note and share-worthy. To become more amplifiable, brands will become more “jagged,” trying to act as catalysts for going viral. Branding messages will naturally evolve towards outlier extremes in their quest to be noticed and interacted with. Brands are aspiring to become “brain-worms” – wait, that’s not quite right – brands are becoming “belief-worms,” slipping past the rational brain if at all possible to lodge themselves directly in our belief systems. Brands want to be emotional shorthand notations that resonate with our most deeply held core beliefs. We have constructed a narrative of who we are and brands that fit that narrative are adopted and amplified.

It’s this version of branding that seems to be where we’re headed – a socially infectious virus that creates it’s own version of the truth and builds a bulwark of belief to defend itself. Increasingly, branding has nothing to do with rational thought or a quest for absolute value.

The Magic of the Internet Through My Dad’s Eyes

“Would you rather lose a limb or never be able to access the Internet?” My daughter looked at me, waiting for my answer.

“Well?”

We were playing the game “Would You Rather” during a lull in the Christmas festivities. The whole point of the game is to pose two random and usually bizarre alternatives to choose from. Once you do, you see how others have answered. It’s a hard game to take seriously.

Except for this question. This one hit me like a hammer blow.

“I have to say I’d rather lose a limb.”

Wow. I would rather lose an arm or a leg than lose something I didn’t even know existed 20 years ago. That’s a pretty sobering thought. I am so dependent on this technical artifact that I value it more than parts of my own body.

During the same holiday season, my stepdad came to visit. He has two cherished possessions that are always with him. One is a pocketknife his father gave him. The other is an iPhone 3 that my sister gave him when she upgraded. Dad doesn’t do much on his phone. But what he does do is critically important to him. He texts his kids and he checks the weather. If you grew up on a farm on the Canadian prairies during the 1930’s, you literally lived and died according to the weather. So, for Dad, it’s magic of the highest sort to be able to know what the temperature is in the places where his favorite people live. We kids have added all our home locations to his weather app, as well as that of his sister-in-law. Dad checks the weather in Edmonton (Alberta), Calgary (Alberta), Kelowna (BC), Orillia (Ontario) and his hometown of Sundre (Alberta) constantly. It’s his way of keeping tabs on us when he can’t be with us.

I wonder what Dad would say if I asked him to choose between his iPhone and his right arm. I suspect he’d have to think about it. I do know the first thing I have to do when he comes to our place is set him up on our home wifi network.

It’s easy to talk about how Millennials or Gen-X’s are dependent on technology. But for me, it really strikes home when I watch people of my parent’s generation hold on to some aspect of technology for dear life because it enables them to do something so fundamentally important to them. They understand something we don’t. They understand what Arthur C. Clarke meant when he said,

“Any sufficiently advanced technology is indistinguishable from magic.”

To understand this, look for a moment through the eyes of my Dad when he was a child. He rode a horse to school – a tiny one room building that was heated with a wood stove. Its library consisted of two bookshelves on the back wall. A circle whose radius was defined by how far you could drive the wagon in a single day bound the world of which he was aware. That world consisted of several farms, the Eagle Hill Co-op store, the tiny town of Sundre, his school and the post office. The last was particularly important, because that’s where the packages you ordered from the Eaton’s catalogue (the Canadian equivalent of Sears Roebuck) would come.

It’s to this post office that my step-dad dragged his sleigh about 75 years ago. He didn’t know it at the time, but he was picking up his Christmas present. His mother, whose own paternal grandfather was a contemporary and friend of Charles Darwin, had saved milk money for several months to purchase a three-volume encyclopaedia for the home. Nobody else they knew had an encyclopaedia. Books were rare enough. But for Isobel (Buckman) Leckie, knowledge was an investment worth making. Those three books became the gift of a much bigger world for my Dad.

It’s easy to make fun of seniors for their simultaneous amazement of and bewilderment by technology. We chuckle when Dad does his third “weather round-up” of the day. We get frustrated when he can’t seem to understand how wifi works. But let’s put this in the context of the change he has seen in his life on this earth. This is not just an obsolete iPhone 3 that he holds in his hand. This is something for which the adjective “magical” seems apt.

Perhaps it’s even magic you’d pay an arm and a leg for.

Back to the Coffee House: Has Journalism Gone Full Circle?

First, let’s consider two facts about Facebook that ran in Mediapost in the last two weeks. The first:

“A full 65% of people find their next destination through friends and family on Facebook.”

Let’s take this out of the context of just looking for your next travel destination. Let’s think about it in terms of a risky decision. Choosing somewhere to go on a vacation is a big decision. There’s a lot riding on it. Other than the expense, there’s also your personal experience. The fact that 2 out of 3 people chose Facebook as the platform upon which to make that decision is rather amazing when you think about it. It shows just how pervasive and influential Facebook as become.

Now, the next fact:

“Facebook users are two-and-a-half times more likely to read fake news fed through the social network than news from reputable news publishers.”

There’s really no reason to elaborate on the above – ‘nuff said. It’s pretty clear that Facebook has emerged at the dominant public space in our lives. It is perhaps the most important platform in our culture today for forming beliefs and opinions.

Sorry Mark Zuckerberg, but not matter what you may have said in the past about not being a media outlet, you can’t duck this responsibility. If our public opinions are formed on your private property that is a unimaginably powerful platform then – as Spidey’s Uncle Ben said (or the French National Convention of 1793; depending on whom you’re prefer to quote as a source) – “With great power comes great responsibility.” If you provide a platform and an audience to news providers – fake or real, you are, ipso facto, a media outlet.

But Facebook is more than just an outlet. It is also the forum where news is digested and shared. It is both a gristmill and a cauldron where beliefs are formed and opinions expressed. This isn’t the first time something like this has happened, although the previous occurrence was in a different time and a very different place. It actually contributed directly to the birth of modern journalism – which is, ironically – under threat from this latest evolution of news.

If you were an average citizen London in 1700 your sources for news were limited. First of all, there was a very good chance that you were illiterate, so reading the news wasn’t an option. The official channel for the news of the realm was royal proclamations read out by town criers. Unfortunately, this wasn’t so much news as whatever the ruling monarch felt like proclaiming.

There was another reality of life in London – if you drank the water it could possibly kill you. You could drink beer in a pub – which most did – or if you preferred to stay sober you could drink coffee. Starting in the mid 1600’s coffee houses started to pop up all over London. It wasn’t the quality of the coffee that made these public spaces all the rage. It was the forum they provided for the sharing of news. Each new arrival was greeted with, “Your servant, sir. What news have you?” Pamphlets, journals, broadsheets and newsletters from independent (a.k.a “non-royal”) publishers were read aloud, digested and debated. Given the class-bound society of London, coffee houses were remarkably democratic. “Pre-eminence of place none here should mind,” proclaimed the Rules and Orders of the Coffee-House (1674), “but take the next fit seat he can find.” Lords, fishmongers, baronets, barristers, butchers and shoe-blacks could and did all share the same table. The coffee houses of London made a huge contribution to our current notion of media as a public trust, with all that entails.

In a 2011 article the Economist made the same parallel between coffee houses and digitally mediated news. In it, they foreshadowed a dramatic shift in our concept of news:

“The internet is making news more participatory, social, diverse and partisan, reviving the discursive ethos of the era before mass media. That will have profound effects on society and politics.”

The last line was prescient. Seismic disruption has fundamentally torn the political and societal landscape asunder. But I have a different take on the “discursive ethos” of news consumption. I assume the Economist used this phrase to mean a verbal interchange of thought related to the news. But that doesn’t happen on Facebook. There is no thought and there is little discourse. The share button is hit before there is any chance to digest the news, let alone vet it for accuracy. This is a much different atmosphere of the coffee house. There is a dynamic that happens when our beliefs are called on the mat in a public forum. It is here where beliefs may be altered but they can never change in a vacuum. The coffee house provided the ideal forum for the challenging of beliefs. As mentioned, it was perhaps the most heterogeneous forum in all of England at the time. Most of all it was an atmosphere infused with physicality and human interaction – a melting pot of somatic feedback. Debate was civil but passionate. There was a dynamic totally missing from it’s online equivalent. The rules and realities of the 18th century coffee house forced thoughtfulness and diverse perspectives upon the discourse. Facebook allows you to do an end run around it as you hit your share button.

The Mindful Democracy Manifesto

 

The best argument against democracy is a five-minute conversation with the average voter.

Winston Churchill

Call it the Frog in Boiling Water Syndrome. It happens when creeping changes in our environment reach a disruptive tipping point that triggers massive change – or – sometimes – a dead frog. I think we’re going through one such scenario now. In this case, the boiling water may be technology and the frog may be democracy.

As I said in Online Spin last week, the network effects of President-elect Donald Trump’s victory may be yet another unintended consequence of technology.

I walked through the dynamics I believe lay behind the election last week in some detail. This week, I want to focus more on the impact of technology on democratic elections in general. In particular, I wanted to explore the network effects of technology, the spread of information and sweeping populist movements like we saw on November 8th.

In an ideal world, access to information should be the bedrock of effective democracy. Ironically, however, now that we have more access than ever that bedrock is being chipped away. There has been a lot of finger pointing at the dissemination of fake news on Facebook, but that’s just symptomatic of a bigger ill. The real problem is the filter bubbles and echo chambers that formed on social networks. And they formed because friction has been eliminated. The way we were informed in this election looked very different from that in elections past.

Information is now spread more through emergent social networks than through editorially controlled media channels. That makes it subject to unintended network effects. Because the friction of central control has been largely eliminated, the spread of information relies on the rules of emergence: the aggregated and amplified behaviors of the individual agents.

When it comes to predicting behaviors of individual human agents, our best bet is placed on the innate behaviors that lie below the threshold of rational thought. Up to now, social conformity was a huge factor. And that rallying point of that social conformity was largely formed and defined by information coming from the mainstream media. The trend of that information over the past several decades has been to the left end of the ideological spectrum. Political correctness is one clear example of this evolving trend.

But in this past election, there was a shift in individual behavior thanks to the elimination of friction in the spread of information – away from social conformity and towards other primal behaviors. Xenophobia is one such behavior. Much as some of us hate to admit it, we’re all xenophobic to some degree. Humans naturally choose familiar over foreign. It’s an evolved survival trait. And, as American economist Thomas Schelling showed in 1971, it doesn’t take a very high degree of xenophobia to lead to significant segregation. He showed that even people who only have a mild preference to be with people like themselves (about 33%) would, given the ability to move wherever they wished, lead to highly segregated neighborhoods. Imagine then the segregation that happens when friction is essentially removed from social networks. You don’t have to be a racist to want to be with people who agree with you. Liberals are definitely guilty of the same bias.

What happened in the election of 2016 were the final death throes of the mythical Homo Politicus – the fiction of the rational voter. Just like Homo Economicus – who predeceased him/her thanks to the ground breaking work of psychologists Amos Tversky and Daniel Kahneman – much as we might believe we make rational voting choices, we are all a primal basket of cognitive biases. And these biases were fed a steady stream of misinformation and questionable factoids thanks to our homogenized social connections.

This was not just a right wing trend. The left was equally guilty. Emergent networks formed and headed in diametrically opposed directions. In the middle, unfortunately, was the future of the country and – perhaps – democracy. Because, with the elimination of information distributional friction, we have to ask the question, “What will democracy become?” I have an idea, but I’ll warn you, it’s not a particularly attractive one.

If we look at democracy in the context of an emergent network, we can reasonably predict a few things. If the behaviors of the individual agents are not uniform – if half always turn left and half always turn right – that dynamic tension will set up an oscillation. The network will go through opposing phases. The higher the tension, the bigger the amplitude and the more rapid the frequency of those oscillations. The country will continually veer right and then veer left.

Because those voting decisions are driven more by primal reactions than rational thought, votes will become less about the optimal future of the country and more about revenge on the winner of the previous election. As the elimination of friction in information distribution accelerates, we will increasingly be subject to the threshold mob effect I described in my last column.

So, is democracy dead? Perhaps. At a minimum, it is debilitated. At the beginning of the column, I quoted Winston Churchill. Here is another quote from Churchill:

Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed it has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time.…

We are incredibly reluctant to toy with the idea of democracy. It is perhaps the most cherished ideal we cling to in the Western World. But if democracy is the mechanism for a never-ending oscillation of retribution, perhaps we should be brave enough to consider alternatives. In that spirit, I put forward the following:

Mindful Democracy.

The best antidote to irrationality is mindfulness – forcing our Prefrontal cortex to kick in and lift us above our primal urges. But how do we encourage mindfulness in a democratic context? How do we break out of our social filter bubbles and echo chambers?

What if we made the right to vote contingent on awareness? What if you had to take a test before you cast your vote? The objective of the test is simple: how aware were you not only of your candidate’s position and policies but – more importantly – that of the other side? You don’t have to agree with the other side’s position; you just have to be aware of it. Your awareness score would then be assigned as a weight to your vote. The higher your level of awareness, the more your vote would count.

I know I’m tiptoeing on the edge of sacrilege here, but consider it a straw man. I’ve been hesitating in going public with this, but I’ve been thinking about it for some time and I’m not so sure it’s worse than the increasingly shaky democratic status quo we currently have. It’s equally fair to the right and left. It encourages mindfulness. It breaks down echo chambers.

It’s worth thinking about.

You’ve got a Friend in Me – Our Changing Relationship with A.I.

Since Siri first stepped into our lives in 2011, we’re being introduced to more and more digital assistants. We’ve met Amazon’s Alexa, Microsoft’s Cortana and Google’s Google Now. We know them, but do we love them?

Apparently, it’s important that we bond with said digital assistants and snappy comebacks appear to be the surest path to our hearts. So, if you ask Siri if she has a boyfriend, she might respond with, “Why? So we can get ice cream together, and listen to music, and travel across galaxies, only to have it end in slammed doors, heartbreak and loneliness? Sure, where do I sign up?” It seems to know a smart-assed digital assistant is to love her – but just be prepared for that love to be unrequited.

Not to be outdone, Google is also brushing up on its witty repartee for it’s new Digital Assistant – thanks to some recruits from the Onion and Pixar. A recent Mediapost article said that Google had just assembled a team of writers from those two sources – tapping the Onion for caustic sarcasm and Pixar for a gentler, more human touch.

But can we really be friends with a machine, even if it is funny?

Microsoft thinks so. They’ve unveiled a new chatbot in China called Xiaoice (pronounced Shao-ice). Xiaoice takes on the persona of a 17 year old girl that responds to questions like “How would you like others to comment on you when you die one day?” with the plaintiff “The world would not be much different without me.” Perhaps this isn’t as clever as Siri’s comebacks, but there’s an important difference: Siri’s responses were specifically scripted to respond to anticipated question; while Xiaoice actually talks with you by using true artificial intelligence and linguistic processing.

In a public test on WeChat, Xiaoice received 1.5 million chat group invitations in just 72 hours. As of earlier this year, she had had more than 10 billion conversations. In a blog post, Xiaoice’s “father”, Yongdong Wang, head of the Microsoft Application and Services Group East Asia, said, “Many see Xiaoice as a partner and friend, and are willing to confide in her just as they do with their human friends. Xiaoice is teaching us what makes a relationship feel human, and hinting at a new goal for artificial intelligence: not just analyzing databases and driving cars, but making people happier.”

When we think of digital assistants, we naturally think of the advantages that machines have over humans: unlimited memory, access to the entire web, vastly superior number crunching skills and much faster processing speeds. This has led to “cognitive offloading” – humans transferring certain mental processing tasks to machines. We now trust Google more than our own memory for retrieving information – just as we trust calculators more than our own limited mathematical abilities. But there should be some things that humans are just better at. Being human, for instance. We should be more empathetic – better able to connect with other people. A machine shouldn’t “get us” better than our spouse or best friend.

For now, that’s probably still true. But what if you don’t have a spouse, or even a best friend? Is having a virtual friend better than nothing at all? Recent studies have shown that robotic pets seem to ease loneliness with isolated seniors. More research is needed, but it’s not really surprising to learn that a warm, affectionate robot is better than nothing at all. What was surprising was that in one study, seniors preferred a robotic dog to the real thing.

The question remains, however: Can we truly have a relationship with a machine? Can we feel friendship – or even love – when we know that the machine can’t do the same? This goes beyond the high-tech flirtation of discovering Siri’s or Google’s “easter egg” responses to something more fundamental. It’s touching on what appears to be happening in China, where millions are making a chatbot their personal confident. I suspect there are more than a few lonely Chinese who would consider Xiaoice their best friend.

And – on many levels – that scares the hell out of me.

 

Why Millennials are so Fascinating

When I was growing up, there was a lot of talk about the Generation Gap. This referred to the ideological gap between my generation – the Baby Boomers, and our parent’s generation – The Silent Generation (1923 – 1944).

But in terms of behavior, there was a significant gap even amongst early Baby Boomers and those that came at the tail end of the boom – like myself. Generations are products of their environment and there was a significant change in our environment in the 20-year run of the Baby Boomers – from 1945 to 1964. During that time, TV came into most of our homes. For the later boomers, like myself, we were raised with TV. And I believe the adoption of that one technology created an unbridgeable ideological gap that is still impacting our society.

The adoption of ubiquitous technologies – like TV and, more recently, connective platforms like mobile phones and the Internet – inevitable trigger massive environmental shifts. This is especially true for generations that grow up with this technology. Our brain goes through two phases where it literally rewires itself to adapt to its environment. One of those phases happens from birth to about 2 to 3 years of age and the other happens during puberty – from 14 to 20 years of age. A generation that goes through both of those phases while exposed to a new technology will inevitably be quite different from the generation that preceded it.

The two phases of our brain’s restructuring – also called neuroplasticity – are quite different in their goals. The first period – right after birth – rewires the brain to adapt to its physical environment. We learn to adapt to external stimuli and to interact with our surroundings. The second phase is perhaps even more influential in terms of who we will eventually be. This is when our brain creates its social connections. It’s also when we set our ideological compasses. Technologies we spend a huge amount of time with will inevitably impact both those processes.

That’s what makes Millennials so fascinating. It’s probably the first generation since my own that bridges that adoption of a massively influential technological change. Most definitions of this generation have it starting in the early 80’s and extend it to 1996 or 97.   This means the early Millennials grew up in an environment that was not all that different than the generation that preceded it. The technologies that were undergoing massive adoption in the early 80’s were VCRs and microwaves – hardly earth shaking in terms of environmental change. But late Millennials, like my daughters, grew up during the rapid adoption of three massively disruptive technologies: mobile phones, computers and the Internet. So we have a completely different environment for which the brain must adapt not only from generation to generation, but within the generation itself. This makes Millennials a very complex generation to pin down.

In terms of trying to understand this, let’s go back to my generation – the Baby Boomers – to see how environment adaptation can alter the face of society. Boomers that grew up in the late 40’s and early 50’s were much different than boomers that grew up just a few years later. Early boomers probably didn’t have a TV. Only the wealthiest families would have been able to afford them. In 1951, only 24% of American homes had a TV. But by 1960, almost 90% of Americans had a TV.

Whether we like to admit it or not, the values of my generation where shaped by TV. But this was not a universal process. The impact of TV was dependent on household income, which would have been correlated with education. So TV impacted the societal elite first and then trickled down. This elite segment would have also been those most likely to attend college. So, in the mid-60’s, you had a segment of a generation who’s values and world view were at least partially shaped by TV – and it’s creation of a “global village” – and who suddenly came together during a time and place (college) when we build the persona foundations we will inhabit for the rest of our lives. You had another segment of a generation that didn’t have this same exposure and who didn’t pursue a post-secondary education. The Vietnam War didn’t create the Counter-Cultural revolution. It just gave it a handy focal point that highlighted the ideological rift not only between two generations but also within the Baby Boomers themselves. At that point in history, part of our society turned right and part turned left.

Is the same thing happening with Millennials now? Certainly the worldview of at least the younger Millennials has been shaped through exposure to connected media. When polled, they inevitably have dramatically different opinions about things like religion, politics, science – well – pretty much everything. But even within the Millennial camp, their views often seem incoherent and confusing. Perhaps another intra-generational divide is forming. The fact is it’s probably too early to tell. These things take time to play out. But if it plays out like it did last time this happened, the impact will still be felt a half century from now.

“Affix Label Here”

Labelability – adjective. Possessing traits, an appearance or personality that makes a person easy to label without knowing him or her well (or at all).

I saw Kate and Will this past weekend. Yes, I’m on a first name basis with them. You might be too. After all, we know them so well. For those of you not in the Royal’s inner circle, you might know them better as the Duke and Duchess of Cambridge.

William is the second-in-line heir to the throne of England. His full name is William Arthur Philip Louis Mountbatten-Windsor. But I just call him William – or Will, if it’s just the two of us. He and his wife Catherine (Kate to me) were in town (Victoria, BC) the other day and I swung by to say hi. Okay, so it was me and about 40,000 other people lined up 30 deep in front of the BC legislature building, but we all knew them on a first name basis.

Will is a quiet but smart guy, well mannered and deferential – pleasantly handsome and he’s a good husband and father. He probably inherited many of these traits from his mom, the late Princess Diana. I also knew her quite well.

Kate is undeniably hot but in that elegant, prom princess kind of way. She also seems quite nice and is a doting mom. I think she’s probably smart too.

I like them both. They’re good people.

Both Kate and William have a quality I’ll call “labelability.” It makes us think we know them without really knowing them at all. John Fitzgerald Kennedy had labelability. Ronald Reagan had labelability, as did Bill Clinton. Our current Prime Minister, Justin Trudeau, has it.

Richard Nixon did not. Ironically, William’s father; Prince Charles, also lacks labelability. His grandfather – Prince Phillip – certainly doesn’t have it. But as I said, his mother, Princess Diana, had it in spades. She was beautiful, generous and vulnerable. We all knew that. We could see it plain as the nose on her beautiful, generous and vulnerable face.

This open door for us to connect emotionally with a total stranger takes on new import thanks to the world we live in. First mass media and then social media have amplified the power of labelability. When we can connect emotionally with someone without having to invest the time to get to know him or her, we generally jump at the chance. Ground swells of support can form instantly.

The Royals learned a hard lesson about the power of labelability when Princess Diana tragically passed away in 1997. Instantly, all those who “knew” Diana started grieving. In their grief, they were shocked at the lack of emotion that came from Buckingham Palace. The Queen was called “cold,” “heartless” and “aloof.” What they really meant is that the Queen didn’t possess labelability. We don’t know the Queen. We can’t quite pin her down. Sometimes she’s our kindly grandmother and sometimes she can be a real cold-hearted hard ass. She’s funny that way.

The power of Labelability will come into sharp focus as we move towards Tuesday, November 8th. Donald Trump has labelability. Hillary Clinton does not. This is not passing any type of judgment on their actual qualities or lack of same. That’s the whole point. Love him or hate him, we all think we have Donald Trump nailed. What you see is what you get. But there seem to be depths to Hillary Clinton that remain off-limits to us. We’re always holding back judgment, waiting for her to surprise us.

She’s kind of got that Queen of England thing going on.

 

Why Our Brains are Blocking Ads

On Mediapost alone in the last three months, there have been 172 articles written that have included the words “ad blockers” or “ad blocking.” That’s not really surprising, given that Mediapost covers the advertising biz and ad blocking is killing that particular biz, to the tune of an estimated loss of $41 billion in 2016. eMarketer estimates 70 million Americans, or 1 out of every 4 people online, uses ad blockers.

Paul Verna, an eMarketer Senior Analyst said “Ad blocking is a detriment to the entire advertising ecosystem, affecting mostly publishers, but also marketers, agencies and others whose businesses depend on ad revenue.” The UK’s culture Secretary, John Whittingdale, went even further, saying that ad blocking is a “modern-day protection racket.”

Here’s the problem with all this finger pointing. If you’re looking for a culprit to blame, don’t look at the technology or the companies deploying that technology. New technologies don’t cause us to change our behaviors – they enable behaviors that weren’t an option before. To get to the bottom of the growth of ad blocking, we have to go to the common denominator – the people those ads are aimed at. More specifically, we have to look at what’s happening in the brains of those people.

In the past, the majority of our interaction with advertising was done while our brain was idling, with no specific task in mind. I refer to this as bottom up environmental scanning. Essentially, we’re looking for something to capture our attention: a TV show, a book, a magazine article, a newspaper column. We were open to being engaged by stimuli from our environment (in other words, being activated from the “bottom up”).

In this mode, the brain is in a very accepting state. We match signals from our environment with concepts and beliefs we hold in our mind. We’re relatively open to input and if the mental association is a positive or intriguing one – we’re willing to spend some time to engage.

We also have to consider the effect of priming in this state. Priming sets a subconscious framework for the brain that then affects any subsequent mental processing. The traditional prime that was in place when we were exposed to advertising was a fairly benign one: we were looking to be entertained or informed, often the advertising content was delivered wrapped in a content package that we had an affinity for (our favorite show, a preferred newspaper, etc), and advertising was delivered in discrete chunks that our brain had been trained to identify and process accordingly.

All this means that in traditional exposures to ads, our brain was probably in the most accepting state possible. We were looking for something interesting, we were primed to be in a positive frame of mind and our brains could easily handle the contextual switches required to consider an ad and it’s message.

We also have to remember that we had a relatively static ad consumption environment that usually matched our expectations of how ads would be delivered. We expected commercial breaks in TV shows. We didn’t expect ads in the middle of a movie or book, two formats that required extended focusing of attention and didn’t lend themselves to mental contextual task switches. Each task switch brings with it a refocusing of attention and a brief burst of heightened awareness as our brains are forced to reassess its environment. These are fine in some environments – not in others.

Now, let’s look at the difference in cognitive contexts that accompany the deliver of most digital ads. First of all, when we’re online on our desktop or engaged with a mobile device, it’s generally in what I’ll call a “top down foraging” mode. We’re looking for something specific and we have intent in mind. This means there’s already a task lodged in our working memory (hence “top down”) and our attentional spotlight is on and focused on that task. This creates a very different environment for ad consumption.

When we’re in foraging mode, we suddenly are driven by an instinct that is as old as the human race (actually, much older than that): Optimal Foraging Theory. In this mode, we are constantly filtering the stimuli of our environment to see what is relevant to our intent. It’s this filtering that causes attentional blindness to non-relevant factors – whether they be advertising banners or people dressed up like gorillas. This filtering happens on a subconscious basis and the brain uses a primal engine to drive it – the promise of reward or the frustration of failure. When it comes to foraging – for food or for information – frustration is a feature, not a bug.

Our brains have a two loop learning process. It starts with a prediction – what psychologists and economists call “expected utility.” We mentally place bets on possible outcomes and go with the one that promises the best reward. If we’re right, the reward system of the brain gives us a shot of dopamine. Things are good. But if we bet wrong, a different part of the brain kicks in: the right anterior insula, the adjacent right ventral prefrontal cortex and the anterior cingulate cortex. Those are the centers of the brain that regulate pain. Nature is not subtle about these things – especially when the survival of the species depends on it. If we find what we’re looking for, we get a natural high. If we don’t, it’s actually causes us pain – but not in a physical way. We know it as frustration. Its purpose is to encourage us to not make the same mistake twice

The reason we’re blocking ads is that in the context those ads are being delivered, irrelevant ads are – quite literally – painful. Even relevant ads have a very high threshold to get over. Ad blocking has little to do with technology or “protection rackets” or predatory business practices. It has to do with the hardwiring of our brains. So if the media or the ad industry want to blame something or someone, let’s start there.

The Bermuda Triangle of Advertising

In the past few weeks, via the comments I’ve received on my two (1,2) columns looking at the possible future of media selection and targeting, it’s become apparent to me that we’re at a crisis point when it comes to advertising. I’ve been fortunate enough to have some of the brightest minds and sharpest commentators in the industry contributing their thoughts on the topic. In the middle of all these comments lies a massive gap. This gap can be triangulated by looking at three comments in particular:

Esther Dyson: “Ultimately, what the advertisers want is sales…  attention, engagement…all these are merely indicators for attribution and waypoints on the path to sales.”

Doc Searls: “Please do what you do best (and wins the most awards): make ads that clearly sponsor the content they accompany (we can actually appreciate that), and are sufficiently creative to induce positive regard in our hearts and minds.”

Ken Fadner: “I don’t want to live in a world like this one” (speaking of the hyper targeted advertising scenario I described in my last column).

These three comments are all absolutely right (with the possible exception of Searls, which I’ll come back to in a minute) and they draw a path around the gaping hole that is the future of advertising.

So let’s strip this back to the basics to try to find solid ground from which to move forward again.

Advertising depends on a triangular value exchange: We want entertainment and information – which is delivered via various media. These media need funding – which comes from advertising. Advertising wants exposure to the media audience. So, if we boil that down – we put up with advertising in return for access to entertainment and information. This is the balance that is deemed “OK” by Doc Searls and other commenters

The problem is that this is no longer the world we live in – if we ever did. The value exchange requires all three sides to agree that the value is sufficient for us to keep participating. The relatively benign and balanced model of advertising laid out by Searls just doesn’t exist anymore.

The problem is the value exchange triangle is breaking down on two sides – for advertisers and the audience.

As I explained in an earlier Online Spin, value exchanges depend on scarcity and for the audience, there is no longer a scarcity of information and entertainment. Also, there are now new models for information and entertainment delivery that disrupt our assessment of this value exchange. The cognitive context that made us accepting of commercials has been broken. Where once we sat passively and consumed advertising, we now have subscription contexts that are entirely commercial free. That makes the appearance of advertising all the more frustrating. Our brain has been trained to no longer be accepting of ads. The other issue is that ads only appeared in contexts where we were passively engaged. Now, ads appear when we’re actively engaged. That’s an entirely different mental model with different expectations of acceptability.

This traditional value exchange is also breaking down for advertisers. The inefficiencies of the previous model have been exposed and more accountable and effective models have emerged. Dyson’s point was probably the most constant bearing point we can navigate to – companies want sales. They also want more effective advertising. And much as we may hate the clutter and crap that litters the current digital landscape, when it works well it does promise to deliver a higher degree of efficiency.

So, we have the previous three sided value exchange collapsing on two of the sides, bringing the third side – media- down with it.

Look, we can bitch about digital all we want. I share Searls frustration with digital in general and Fadner’s misgivings about creepy and ineffective execution of digital targeting in particular. But this horse has already left the barn. Digital is more than just the flavor of the month. It’s the thin edge of a massive wedge of change in content distribution and consumption. For reasons far too numerous to name, we’ll never return to the benign world of clearly sponsored content and creative ads. First of all, that benign world never worked that well. Secondly, two sides of the value-exchange triangle have gotten a taste of something better- virtually unlimited content delivered without advertising strings attached and a much more effective way to deliver advertising.

Is digital working very well now? Absolutely not. Fadner and Searls are right about that, It’s creepy, poorly targeted, intrusive and annoying. And it’s all these things for the very same reason that Esther Dyson identified – companies want sales and they’ll try anything that promises to deliver it. But we’re at the very beginning of a huge disruptive wave. Stuff isn’t supposed to work very well at this point. That comes with maturity and an inevitable rebalancing. Searls may rail against digital, just like people railed against television, the telephone and horseless carriages. But it’s just too early to tell what a more mature model will look like. Corporate greed will dictate the trying of everything. We will fight back by blocking the hi-jacking of our attention. A sustainable balance will emerge somewhere in between. But we can’t see it yet from our vantage point.

Sorry Folks – Blame it on Ed

Just when you thought it was safe to assume I’d be moving on to another topic, I’m back. Blame it on Ed Papazian, who commented on last week’s column about the Rise of the Audience marketplace. I’ll respond to his comment in multiple parts. First, he said:

“I think it’s fine to speculate on “audience” based advertising, by which you actually mean using digital, not traditional media, as the basis for the advertising of the future.”

All media is going to be digital. Our concept of “traditional” media is well down its death spiral. We’re less then a decade away from all media being delivered through a digital platform that would allow for real time targeting of advertising. True, we have to move beyond the current paradigm of mass distributed, channel restricted advertising we seem stuck in, but the technology is already there. We (by which I mean the ad industry) just have to catch up. Ed continues in this vein:

“However, in a practical sense, not only is this, as yet, merely a dream for TV, radio and print media, but it is also an oversimplification.”

Is it an oversimplification? Let’s remember that more and more of our media consumption is becoming trackable from both ends. We no longer have to track from the point of distribution. Tracking is also possible at the point of consumption. We are living with devices that increasingly have insight into what we’re doing at any moment of the day. It’s just a matter of us giving permission to be served relevant, well targeted ads based on the context of our lives.

But what would entice us to give this permission? Ed goes on to say that…

“Even if a digital advertiser could actually identify every consumer in the U.S. who is interested—or “in the market” for what his ads are trying to sell and also how they are pitching the product/service—and send only these people “audience targeted ads”, many of the ads will still not be of interest…”

Papazian proposed an acid test of sorts (or, more appropriately – an antacid test):

“Why? Because they are for unpleasant or mundane products—toilet bowel cleansers, upset stomach remedies, etc.—-or because the ads are pitching a brand the consumer doesn’t like or has had a bad experience with.”

Okay, let me take up the challenge that Ed has thrown down (or up?). Are ads for stomach remedies always unwanted? Not if I have a history of heartburn, especially when my willpower drops and my diet changes as I’m travelling. Let’s take it one step further. I’ve made a dinner reservation for 7 pm at my favorite Indian food restaurant while I’m in San Francisco. It’s 2 pm. I’ve just polished off a Molinari’s sandwich and I’m heading back to my hotel. As I turn the corner at O’Farrell and Powell, an instant coupon is delivered to my phone with 50% off a new antacid tablet at the Walgreen’s ahead, together with the message: “Prosciutto, pepperoncinis and pakoras in the same day? Look at you go! But just in case…”

The world Ed talks about does have a lot of unwanted advertising. But in the world I’m envisioning, where audiences are precisely targeted, we will hopefully eliminate most of those unwanted ads. Those ads are the by-product of the huge inefficiencies in the current advertising marketplace. And it’s this inefficiency that is rapidly destroying advertising as we know it from both ends. The current market is built on showing largely ineffective ads to mainly disinterested prospects – hoping there is an anomaly in there somewhere – and charging the advertiser to do so. I don’t know about you, but that doesn’t sound like a sustainable plan to me.

When I talk about selecting audiences in a market, it’s this level of specificity that I’m talking about. There is nothing in the above scenario that’s beyond the reach of current Mar-Tech. Perhaps it’s oversimplified. But I did that to make a point. In paid search, we used to have a saying, “buy your best clicks first”. It meant starting with the obviously relevant keywords – the people who were definitely looking for you. The problem was that there just wasn’t enough volume on these “sure-bet” keywords alone. But as digital has matured, the amount of “sure-bet” inventory has increased. We’re still not all the way there – where we can rely on sure-bet inventory alone – but we’re getting closer. The audience marketplace I’m envisioning gets us much of the way there. When technology and data allow us to assemble carefully segmented audiences with a high likelihood of successful engagement on the fly, we eliminate the inefficiencies in the market.

I truly believe that it’s time to discard the jury-rigged, heavily bandaged and limping behemoth that advertising has become and start thinking about this in an entirely new way. Papazian’s last sentence in his comment was…

“You just can’t get around the fact that many ads are going to be unwanted, no matter how they are targeted….”

Do we have to accept that as our future? It’s certainly the present, but I would hate to think we can’t reach any higher. The first step is to stop accepting advertising the way we know it as the status quo. We’ll be unable to imagine tomorrow if we’re still bound by the limitations of today.