Using Science for Selling: Sometimes Yes, Sometimes No

A recent study out of Ohio State University seems like one of those that the world really didn’t need. The researchers were exploring whether introducing science into the marketing would help sell chocolate chip cookies.

And to us who make a living in marketing, this is one of those things that might make us say “Duh, you needed research to tell us that? Of course you don’t use science to sell chocolate chip cookies!”

But bear with me, because if we keep asking why enough, we can come up with some answers that might surprise us.

So, what did the researchers learn? I quote,

“Specifically, since hedonic attributes are associated with warmth, the coldness associated with science is conceptually disfluent with the anticipated warmth of hedonic products and attributes, reducing product valuation.”

Ohio State Study

In other words – much simpler and fewer in number – science doesn’t help sell cookies. And it’s because our brains think differently about some things than other.

For example, a study published in the journal Computers in Human Behavior (Casado-Aranda, Sanchez-Fernandez and Garcia) found that when we’re exposed to “hedonic” ads – ads that appeal to pleasurable sensations – the parts of our brain that retrieve memories kicks in. This isn’t true when we see utilitarian ads. Predictably, we approach those ads as a problem to be solved and engage the parts of our brain that control working memory and the ability to focus our attention.

Essentially, these two advertising approaches take two different paths in our awareness, one takes the “thinking” path and one takes the “feeling” path. Or, as Nobel Laureate Daniel Kahneman would say, one takes the “thinking slow” path and one takes the “thinking fast” path.

Yet another study begins to show why this may be so. Let’s go back to chocolate chip cookies for a moment. When you smell a fresh baked cookie, it’s not just the sensory appeal “in the moment” that makes the cookie irresistible. It’s also the memories it brings back for you. We know that how things smell is a particularly effective way to trigger this connection with the past. Certain smells – like that of cookies just out of the oven – can be the shortest path between today and some childhood memory. These are called associative memories. And they’re a big part of “feeling” something rather than just “thinking” about it.

At the University of California – Irvine – Neuroscientists discovered a very specific type of neuron in our memory centers that oversee the creation of new associative memories. They’re called “fan cells” and it seems that these neurons are responsible for creating the link between new input and those emotion-inducing memories that we may have tucked away from our past. And – critically – it seems that dopamine is the key to linking the two. When our brains “smell” a potential reward, it kicks these fan cells into gear and our brain is bathed in the “warm fuzzies.” Lead research Kei Igarashi, said,

“We never expected that dopamine is involved in the memory circuit. However, when the evidence accumulated, it gradually became clear that dopamine is involved. These experiments were like a detective story for us, and we are excited about the results.”

Kei Igarashi – University of California – Irvine

Not surprisingly – as our first study found – introducing science into this whole process can be a bit of a buzz kill. It would be like inviting Bill Nye the Science Guy to teach you about quantum physics during your Saturday morning cuddle time.

All of this probably seems overwhelmingly academic to you. Selling something like chocolate chip cookies isn’t something that should take three different scientific studies and strapping several people inside a fMRI machine to explain. We should be able to rely on our guts, and our guts know that science has no place in a campaign built on an emotional appeal.

But there is a point to all this. Different marketing approaches are handled by different parts of the brain, and knowing that allows us to reinforce our marketing intuition with a better understanding of why we humans do the things we do.

Utilitarian appeals activate the parts of the brain that are front and center, the data crunching, evaluating and rational parts of our cognitive machinery.

Hedonic appeals probe the subterranean depths of our brains, unpacking memories and prodding emotions below the thresholds of us being conscious of the process. We respond viscerally – which literally means “from our guts”.

If we’re talking about selling chocolate chip cookies, we have moved about as far towards the hedonic end of the scale as we can. At the other end we would find something like motor oil – where scientific messaging such as “advanced formulation” or “proven engine protection” would be more persuasive. But almost all other products fall somewhere in between. They are a mix of hedonic and utilitarian factors. And we haven’t even factored in the most significant of all consumer considerations – risk and how to avoid it. Think how complex things would get in our brains if we were buying a new car!

Buying chocolate chip cookies might seem like a no brainer – because – well – it almost is. Beyond dosing our neural pathways with dopamine, our brains barely kick in when considering whether to grab a bag of Chips Ahoy on our next trip to the store. In fact, the last thing you want your brain to do when you’re craving chewy chocolate is to kick in. Then you would start considering things like caloric intake and how you should be cutting down on processed sugar. Chocolate chip cookies might be a no-brainer, but almost nothing else in the consumer world is that simple.

Marketing is relying more and more on data. But data is typically restricted to answering “who”, “what”, “when” and “where” questions. It’s studies like the ones I shared here that start to pick apart the “why” of marketing.

And when things get complex, asking “why” is exactly what we need to do.

Don’t Be Too Quick To Dismiss The Metaverse

According to my fellow Media Insider Maarten Albarda, the metaverse is just another in a long line of bright shiny objects that — while promising to change the world of marketing — will probably end up on the giant waste heap of overhyped technologies.

And if we restrict Maarten’s caution to specifically the metaverse and its impact on marketing, perhaps he’s right. But I think this might be a case of not seeing the forest for the trees.

Maarten lists a number of other things that were supposed to revolutionize our lives: Clubhouse, AI, virtual reality, Second Life. All seemed to amount to much ado about nothing.

But as I said almost 10 years ago, when I first started talking about one of those overhyped examples, Google Glass — and what would eventually become the “metaverse” (in rereading this, perhaps I’m better at predictions than I thought)  — the overall direction of these technologies do mark a fundamental shift:

“Along the way, we build a “meta” profile of ourselves, which acts as both a filter and a key to the accumulated potential of the ‘cloud.’ It retrieves relevant information based on our current context and a deep understanding of our needs, it unlocks required functionality, and it archives our extended network of connections.”

As Wired founder and former executive editor Kevin Kelly has told us, technology knows what it wants. Eventually, it gets it. Sooner or later, all these things are bumping up against a threshold that will mark a fundamental shift in how we live.

You may call this the long awaited “singularity” or not. Regardless, it does represent a shift from technology being a tool we use consciously to enhance our experiences, to technology being so seamlessly entwined with our reality that it alters our experiences without us even being aware of it. We’re well down this path now, but the next decade will move us substantially further, beyond the point of no return.

And that will impact everything, including marketing.

What is interesting is the layer technology is building over the real world, hence the term “meta.” It’s a layer of data and artificial intelligence that will fundamentally alter our interactions with that world. It’s technology that we may not use intentionally — or, beyond the thin layer of whatever interface we use, may not even be aware of.

This is what makes it so different from what has come before. I can think of no technical advance in the past that is so consequential to us personally yet functions beyond the range of our conscious awareness or deliberate usage. The eventual game-changer might not be the metaverse. But a change is coming, and the metaverse is a signal of that.

Technology advancing is like the tide coming in. If you watch the individual waves coming in, they don’t seem to amount to much. One stretches a little higher than the last, followed by another that fizzles out at the shoreline. But cumulatively, they change the landscape — forever. This tide is shifting humankind’s relationship with technology. And there will be no going back.

Maybe Maarten is right. Maybe the metaverse will turn out to be a big nothingburger. But perhaps, just perhaps, the metaverse might be the Antonio Meucci  of our time: an example where the technology was inevitable, but the timing wasn’t quite right.

Meucci was an Italian immigrant who started working on the design of a workable telephone in 1849, a full two decades before Alexander Graham Bell even started experimenting with the concept.  Meucci filed a patent caveat in 1871, five years before Bell’s patent application was filed, but was destitute and didn’t have the money to renew it.  His wave of technological disruption may have hit the shore a little too early, but that didn’t diminish the significance of the telephone, which today is generally considered one of the most important inventions  of all time in terms of its impact on humanity.

Whatever is coming, and whether or not the metaverse represents the sea change catalyst that alters everything, I fully expect at some point in the very near future to pinpoint this time as the dawn of the technological shift that made the introduction of the telephone seem trivial in comparison.

Why Outré is En Vogue

Last week, I talked about the planeload of social media influencers that managed to ruffle the half-frozen feathers of we normally phlegmatic Canadians. But that example got me thinking. Outrage – or, as the French say, “outre” – sells. The more outrageous it is, the better it seems to work. James William Awad  – the man behind the Plane of Shame – knew this. And we all just obligingly fell into his trap.

This all depends on how understanding how social networks work. Let’s begin by admitting that humans love to gossip. Information gives us status. The more interesting the information, the higher it’s value and, accordingly, the higher our social status. The currency of social networks is curiosity, having something that people will pay attention to.

But there is also the element of tribal identification. We signal who we are by the information we share. To use Canadian sociologist Ervin Goffman’s analogy, we are all actors and what we share is part of the role we have built for ourselves.

But these roles are not permanent. They shift depending on what stage we’re on and who the audience is. In today’s world social media has given us a massive stage.  And I suspect this might overload our normal social mechanisms. On this stage, we know that things that spread on social media tend to be in outlier territory, far from the boring middle ground of the everyday; they could be things we love or things that shock and outrage. Whether we love or hate the things we share depends on which tribe we identify with at the time.

Think of us humans as having a sharing thermostat where the trigger point is set depending on how strongly our emotions are triggered. If a post with new information doesn’t hit the threshold, it doesn’t get shared. Once that threshold is passed, the likelihood to share increases with the intensity of our emotions. It’s true for us, and because we’re human, it’s also true for everyone else that sees our post. The benefits of sharing juicy information is immediately reinforced through the dopamine releasing mechanism of getting likes and shares. The higher the number, the bigger the natural high.

But even when they lie well out in outlier territory, good news and bad news are not created equal. In evolutionary terms, we are hardwired to pay more attention to bad news. Good news might make us temporarily feel better, but bad news might kill us. If we want to survive long enough to pass on our genes, we better pay attention to the things that threaten us. That’s why traditional broadcasters know, “if it bleeds, it leads.”

Harvard Business School professor Amit Goldenberg found the same is true for social networks. “Although people produce much more positive content on social media in general, negative content is much more likely to spread,” says Goldenberg.

This creates an interesting – and potentially dangerous – arena for social and influencer marketing to play out in. The example I used in my last post is a perfect example. If you can outrage people, you win. It will spread virally through social networks, creating so much noise that eventually, traditional media will pick it up. This then connects the story to a broader social media audience. You get an amplification feedback loop that keeps reaching more and more people. Yes, the majority of the people will be outraged, but your target market will be delighted. Again, it all depends on which tribe you identify with.

It’s this appeal to the basest of human instincts that is troubling about this new spin on “earned” media. Savvy marketers have learned to game the system by pushing our hot buttons, leaving us in a perpetual state of pissed-off-edness.

The most frustrating thing is – it works.

Social Media Snakes on a Plane

Did you hear the one about the plane full of social media influencers that left Montréal headed for a party in Cancun? No? Then you obviously haven’t been in Canada, because we have been hanging our heads in shame about it ever since the videos started to go viral.

This Plane of Shame left La Belle Province on December 30. It was a Sunwings chartered flight, packed with partiers hand-picked by entrepreneur and social influencer James William Awad, who chartered the flight as part of his 111 Private Club. It was always intended to be a select event for just the “right type” of people, meaning those who showed well on social media. In that, this excursion brought back troubling memories of the infamous Fyre Festival.

The antics of this group and the inability to “read the room” amongst skyrocketing COVID numbers has left many slack-jawed in stunned disbelief. The breathtaking entitlement of these partiers relied solely on how attractive, young and digitally well-connected they were. For most of them, their number of followers seemed to give them carte blanche to be complete assholes.

And behind it all was Awad, who was pulling the strings like a social engineer from hell. According to him, these jerks were the type of people we should all aspire to be. It’s exactly this type of person he wants for his “exclusive” club. In fact, in an interview with the so appropriately named Narcity blog, they are screened for “the personality, the energy, the vibe , make sure they understand the rules, know their age, their background, and their general status in society”.

I suspect Awad is more concerned with their “vibe” and “status” then their “understanding of the rules.”

The sad thing is that this social media stunt seems to be working. In fact, James Awad is currently laughing all the way to his cryptocurrency bank.  After showing the barest sliver of remorse when the media piled on, he quickly backtracked and doubled down on his support of abominable behavior, saying in a tweet on January 9, “Reality of the story, sheeps (sic) are mad because people partied on a private chartered plane where partying was allowed. Wake up!!“

And the stunt has brought a flood of interest to his 111 Private Club. In an interview, Awad said he had hundreds of people on his waiting list, desperate to join his club. It shows that when it comes to social media influence marketing, at least when it comes to boorish behavior, there truly is no such thing as bad press.

I’ve made no bones about the fact that I’m not a fan of influencer marketing. And I realize that I am light years removed from being in the target market for this particular campaign. So, is this just a question of targeting, or does it go deeper than that? If marketers are using social media to spread messages through influencers, is there a social and ethical responsibility for those messages to not be harmful or conducive to anti-social behaviors? After all, by their very name, these people influence the behavior of others. Should the behavior they’re encouraging be scraped from the lowest dregs of our culture? Jerks will be jerks, but when exactly the thing makes them jerks has the hell amplified out of it thanks to the knock-on effects of social media, should we start putting our foot down?

Like almost everything to do with marketing and media now a days, this falls into a grey area roughly the size of the Atlantic Ocean. Even the old rules of engagement that used to govern advertising – as flimsy as they were – no longer apply. Essentially, social influencers seem to be able to do whatever they want, flaunting the guidelines of common decency that govern the rest of us. Not only are there no consequences for this, but they’re rewarded handsomely for behaving badly.

Influencer marketing is governed (in the United States) by the First Amendment ensuring Freedom of Speech. But there is an exception for messaging that is “directed to inciting or producing imminent lawless action.” This example wouldn’t quite meet the requirements for that exception, but perhaps this is a case of our industry establishing its own boundaries. When it comes to social media influencers, we should aspire to be a little less shitty.

The thing I like the least about influencer marketing is that it reduces social complexity to a level most of us haven’t seen since high school. The sum of your self-worth is determined by the parties you did (or didn’t) get invited to and the brand of jeans you wear. I don’t know about you, but I’m glad I left this all behind when I turned 18. In my experience, those that hit the peak of their popularity in high school have had a long, downwards slide ever since. We can only hope the same will be true of the social influencers that were on board that plane from Montréal to Cancun.

When it comes to these social media influencers, even our own Prime Minister Trudeau (who I suspect might have been invited to all the right parties and wore the right jeans in high school) had had enough:

“I think like all Canadians who have seen those videos, I’m extremely frustrated. We know how hard people have worked to keep themselves safe, to limit their family gatherings at Christmas time, to wear masks, to get vaccinated, to do all the right things, and it’s slap in the face to see people putting themselves, putting their fellow citizens, putting airline workers at risk by being completely irresponsible.”

And just to show them how disappointed we Canadians are, Sunwing pulled the plug on the return flight, stranding the group at their resort in Cancun. Two other airlines followed suit. As Jimmy Fallon joked, there’s no better way to discipline a bunch of Canadians in the middle of winter than to strand them at a luxury resort in Mexico.

That’ll show ‘em!

What Media Insiders Were Thinking (And Writing) In 2021

Note: This is a year back look at the posts in the Media Insider Column on Mediapost, for which I write every Tuesday. All the writers for the column have been part of the Marketing and Media business for decades, so there’s a lot of wisdom there to draw on. This is the second time I’ve done this look back at what we’ve written about in the previous year.

As part of the group of Media Insiders, I’ve always considered myself in sterling company. I suspect if you added up all the years of experience in this stable of industry experts, we’d be well into the triple digits. Most of the Insiders are still active in the world of marketing. For myself, although I’m no longer active in the business, I’m still fascinated by how it impacts our lives and our culture.

For all those reasons, I think the opinions of this group are worth listening to — and, thankfully,  MediaPost gives you those opinions every day.

Three years ago, I thought it would be interesting to do a “meta-analysis” of those opinions over the span of the year, to see what has collectively been on the minds of the Media Insiders. I meant to do it again last year, but just never got around to it — as you know, global pandemics and uprisings against democracy were a bit of a distraction.

This year, I decided to give it another shot. And it was illuminating. Here’s a summary of what has been on our collective minds:

I don’t think it’s stretching things to say that your Insiders have been unusually existential in their thoughts in the past 12 months. Now, granted, this is one column on MediaPost that leads to existential musings. That’s why I ended up here. I love the fact that I can write about pretty much anything and it generally fits under the “Media Insider” masthead. I suspect the same is true for the other Insiders.

But even with that in mind, this year was different. I think we’ve all spent a lot of the last year thinking about what the moral and ethical boundaries for marketers are — for everyone, really — in the world of 2021. Those ponderings broke down into a few recurring themes.

Trying to Navigate a Substantially Different World

Most of this was naturally tied to the ongoing COVID pandemic.  

Surprisingly, given that three years ago it was one of the most popular topics, Insiders said little about politics. Of course, we were then squarely in the middle of “Trump time.” There were definitely a few posts after the Jan. 6 insurrection, but most of it was just trying to figure out how the world might permanently change after 2021. Almost 20% of our columns touched on this topic.

A notable subset of this was how our workplaces might change. With many of us being forced to work from home, 4% of the year’s posts talked about how “going to work” may never look the same again.

Ad-Tech Advice

The next most popular topic from Insiders (especially those still in the biz, like Corey, Dave, Ted and Maarten) was ongoing insight on how to manage the nuts and bolts of your marketing. A lot of this focused on using ad tech effectively. That made up 15% of last year’s posts.

And Now, The Bad News

I will say your Media Insiders (myself included) are a somewhat pessimistic bunch. Even when we weren’t talking about wrenching change brought about by a global pandemic, we were worrying about the tech world going to hell in a handbasket. About 13.5% of our posts talked about social media, and it was almost all negative, with most of it aimed squarely at Facebook — sorry, Meta.

Another 12% of our posts talked about other troubling aspects of technology. Privacy concerns over data usage and targeting took the lead here. But we were also worried about other issues, like the breakdown of person-to-person relationships, disappearing attention spans, and tears in our social fabric. When we talked about the future of tech, we tended to do it through a dystopian lens.

Added to this was a sincere concern about the future of journalism. This accounted for another 5% of all our posts. This makes almost a full third of all posts with a decidedly gloomy outlook when it comes to tech and digital media’s impact on society.

The Runners-Up

If there was one branch of media that seemed the most popular among the Insiders (especially Dave Morgan), it was TV and streaming video. I also squeezed a few posts about online gaming into this category. Together, this topic made up 10.5% of all posts.

Next in line, social marketing and ethical branding. We all took our own spins on this, and together we devoted almost 9.5% of all posts in 2021 to it. I’ve talked before about the irony of a world that has little trust in advertising but growing trust in brands. Your Insiders have tried to thread the needle between the two sides of this seeming paradox.

Finally, we did cover a smattering of other topics, but one in particular rose about the others as something increasingly on our radar. We touched on the Metaverse and its implications in almost 3% of our posts.

Summing Up

To try to wrap up 2021 in one post is difficult, but if there was a single takeaway, I think it’s that both marketing and media are faced with some very existential questions. Ad-supported revenue models have now been pushed to the point where we must ask what the longer-term ethical implications might be.

If anything, I would say the past year has marked the beginning of our industry realizing that a lot of unintended consequences have now come home to roost.

I Was So Wrong in 1996…

It’s that time of year – the time when we sprain our neck trying to look backwards and forwards at the same time. Your email inbox, like mine, is probably crammed with 2021 recaps and 2022 predictions.

I’ve given up on predictions. I have a horrible track record. In just a few seconds, I’ll tell you how horrible. But here, at the beginning of 2022, I will look back. And I will substantially overshoot “a year in review” by going back all the way til 1996, 26 years ago. Let me tell you why I’m in the mood for some reminiscing.

In amongst the afore-mentioned “look back” and “look forward” items I saw recently there was something else that hit my radar; a number of companies looking for SEO directors. After being out of the industry for almost 10 years, I was mildly surprised that SEO still seemed to be a rock solid career choice. And that brings me both to my story about 1996 and what was probably my worst prediction about the future of digital marketing.

It was in late 1996 that I first started thinking about optimizing sites for the search engines and directories of the time: Infoseek, Yahoo, Excite, Lycos, Altavista, Looksmart and Hotbot. Early in 1997 I discovered Danny Sullivan’s Webmaster’s Guide to Search Engines. It was revelatory. After much trial and error, I was reasonably certain I could get sites ranking for pretty much any term. We had our handful of local clients ranking on Page One of those sites for terms like “boats,” “hotels”, “motels”, “men’s shirts” and “Ford Mustang”. It was the Wild West. Small and nimble web starts ups were routinely kicking Fortune 500 ass in the digital frontier.   

As a local agency that had played around with web design while doing traditional marketing, I was intrigued by this opportunity. Somewhere near the end of 1997 I did an internal manifesto where I speculated on the future of this “Internet” thing and what it might mean for our tiny agency (I had just brought on board my eventual partner, Bill Barnes, and we had one other full-time employee). I wish I could find that original document, but I remember saying something to the effect of, “This search engine opportunity will probably only last a year or two until the engines crack down and close the loopholes.” Given that, we decided to go for broke and seize that opportunity.

In 1998 we registered the domain www.searchengineposition.com. This was a big step. If you could get your main keywords in your domain name, it virtually guaranteed you link juice. At that time, “Search engine optimization” hadn’t emerged as the industry label. Search engine positioning was the more common term. We couldn’t get www.searchenginepositioning.com because domain names were limited by the number of characters you could use.

We had our domain and soon we had a site. We needed all the help we could get, because according to my prediction, we only had until 2000 or so to make as much as we could from this whole “search thing.” The rest, as they say, was history. It just wasn’t the history I had predicted.

To be fair, I wasn’t the only one making shitty predictions at the time. In 1995, 3Com co-founder Robert Metcalfe (also the co-inventor of Ethernet) said in a column in Infoworld:

“Almost all of the many predictions now being made about 1996 hinge on the Internet’s continuing exponential growth. But I predict the Internet, which only just recently got this section here in InfoWorld, will soon go spectacularly supernova and in 1996 catastrophically collapse.”

And in 1998, Nobel prize winning economist Paul Krugman said,

“The growth of the Internet will slow drastically, as the flaw in ‘Metcalfe’s law’ becomes apparent: most people have nothing to say to each other! By 2005, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s”

Both of those people were way smarter than I was, so if I was clueless about the future, at least I was in good company.

As we now know, SEO would be fine, thank you very much. In 2004, some 6 years later, in my very first post for MediaPost, I wrote:

“I believe years from now that…2004 … will be a milestone in the (Search) industry. I think it will mark the beginning of a year that will dramatically alter the nature of search marketing.”

That prediction, as it turned out, was a little more accurate. In 2004, Google’s AdWords program really hit its stride, doubling revenue from 1.5 billion the previous year to $3 billion and starting its hockey stick climb up to its current level, just south of $150 billion (in 2020).

The reason search – and organic search optimization – never fizzled out was that it was a fundamental connection between user intent and the ever-expanding ocean of available content. Search Engine Optimization turned out to be a much better label for the industry than Search Engine Positioning, despite my unfortunate choice of domain names. The later was really an attempt to game the algorithms. The former was making sure content was findable and indexable. Hindsight has shown that it was a much more sustainable approach.

I ended that first post talking about the search industry of 2004 by saying,

“And to think, one day I’ll be able to say I was there.”

I guess today is that day.

When Social Media Becomes the Message

On Nov. 23, U.K. cosmetics firm Lush said it was deactivating its Instagram, Facebook, TikTok and Snapchat accounts until the social media environment “is a little safer.” And by a “safer” environment, the company didn’t mean for advertisers, but for consumers. Jack Constantine, chief digital officer and product inventor at Lush, explains in an interview with the BBC:

“[Social media channels] do need to start listening to the reality of how they’re impacting people’s mental health and the damage that they’re causing through their craving for the algorithm to be able to constantly generate content regardless of whether it’s good for the users or not.”

This was not an easy decision for Lush. It came with the possibility of a substantial cost to its business, “We already know that there is potential damage of £10m in sales and we need to be able to gain that back,” said Constantine. “We’ve got a year to try to get that back, and let’s hope we can do that.”

In effect, Lush is rolling the dice on a bet based on the unpredictable network effects of social media. Would the potential loss to its bottom line be offset by the brand uptick it would receive by being true to its core values? In talking about Lush’s move on the Wharton Business Daily podcast, marketing lecturer Annie Wilson pointed out the issues in play here:

“There could be positive effects on short-term loyalty and brand engagement, but it will be interesting to see the long-term effect on acquiring new consumers in the future.”

I’m not trying to minimize Lush’s decision here by categorizing it as a marketing ploy. The company has been very transparent about how hard it’s been to drop — even temporarily — Facebook and its other properties from the Lush marketing mix. The brand had previously closed several of its UK social media accounts, but eventually found itself “back on the channels, despite the best intentions.”

You can’t overstate how fundamental a decision this is for a profit-driven business. But I’m afraid Lush is probably an outlier. The brand is built on making healthy choices. Lush eventually decided it had to stay true to that mission even if it hurts the bottom line.

Other businesses are far from wearing their hearts on their sleeves to the same extent as Lush. For every Lush that’s out there, there are thousands that continue to feed their budgets to Facebook and its properties, even though they fundamentally disagree with the tactics of the channel.

There has been pushback against these tactics before. In July of 2020, 1000 advertisers joined the #StopHateForProfit Boycott against Facebook. That sounds impressive – until you realize that Facebook has 9 million clients. The boycotters represented just over .01% of all advertisers. Even with the support of other advertisers who didn’t join the boycott but still scaled back their ad spend, it only had a fleeting effect on Facebook’s bottom line. Almost all the advertisers eventually returned after the boycott.

As The New York Times reported at the time, the damage wasn’t so much to Facebook’s pocketbook as to its reputation. Stephen Hahn-Griffiths, the executive vice president of the public opinion analysis company RepTrak, wrote in a follow-up post,

“What could really hurt Facebook is the long-term effect of its perceived reputation and the association with being viewed as a publisher of ‘hate speech’ and other inappropriate content.”

Of course, that was all before the emergence of a certain Facebook data engineer by the name of Frances Haugen. The whistleblower released thousands of internal documents to the Wall Street Journal this past fall. It went public in September of this year in a series called “The Facebook Files.” If we had any doubt about the culpability of Zuckerberg et al, this pretty much laid that to rest.

Predictably, after the story broke, Facebook made some halfhearted attempts to clean up its act by introducing new parental controls on Instagram and Facebook. This follows the typical Facebook handbook for dealing with emerging shit storms: do the least amount possible, while talking about it as much as possible. It’s a tactic known as “purpose-washing.”

The question is, if this is all you do after a mountain of evidence points to you being truly awful, how sincere are you about doing the right thing? This puts Facebook in the same category as Big Tobacco, and that’s pretty crappy company to be in.

Lush’s decision to quit Facebook also pinpoints an interesting dilemma for advertisers: What happens when an advertising platform that has been effective in attracting new customers becomes so toxic that it damages your brand just by being on it? What happens when, as Marshall McLuhan famously said, the medium becomes the message?

Facebook is not alone with this issue. With the systematic dismantling of objective journalism, almost every news medium now carries its own message. This is certainly true for channels like Fox News. By supporting these platforms with advertising, advertisers are putting a stamp of approval on those respective editorial biases and — in Fox’s case — the deliberate spreading of misinformation that has been shown to have a negative social cost.

All this points to a toxic cycle becoming more commonplace in ad-supported media: The drive to attract and effectively target an audience leads a medium to embrace questionable ethical practices. These practices then taint the platform itself, leading to it potentially becoming brand-toxic. The advertisers then must choose between reaching an available audience that can expand its business, or avoiding the toxicity of the platform. The challenge for the brand then becomes a contest to see how long it can hold its nose while it continues to maximize sales and profits.

For Lush, the scent of Facebook’s bullshit finally grew too much to bear — at least for now.

The Tech Giant Trust Exercise

If we look at those that rule in the Valley of Silicon — the companies that determine our technological future — it seems, as I previously wrote,  that Apple alone is serious about protecting our privacy. 

MediaPost editor in chief Joe Mandese shared a post late last month about how Apple’s new privacy features are increasingly taking aim at the various ways in which advertising can be targeted to specific consumers. The latest victim in those sights is geotargeting.

Then Steve Rosenbaum mentioned last week that as Apple and Facebook gird their loins and prepare to do battle over the next virtual dominion — the metaverse — they are taking two very different approaches. Facebook sees this next dimension as an extension of its hacker mentality, a “raw, nasty networker of spammers.” Apple is, as always, determined to exert a top-down restriction on who plays in its sandbox, only welcoming those who are willing to play by its rules. In that approach, the company is also signaling that it will take privacy in the metaverse seriously. Apple CEO Tim Cook said he believes “users should have the choice over the data that is being collected about them and how it’s used.”

Apple can take this stand because its revenue model doesn’t depend on advertising. To find a corporation’s moral fiber, you always, always, always have to follow the money. Facebook depends on advertising for revenue. And it has repeatedly shown it doesn’t really give a damn about protecting the privacy of users. Apple, on the other hand, takes every opportunity to unfurl the privacy banner as its battle standard because its revenue stream isn’t really impacted by privacy.

If you’re looking for the rot at the roots of technology, a good place to start is at anything that relies on advertising. In my 40 years in marketing, I have come to the inescapable conclusion that it is impossible for business models that rely on advertising as their primary source of revenue to stay on the right side of privacy concerns. There is an inherent conflict that cannot be resolved. In a recent earnings call,  Facebook CEO Mark Zuckerberg said it in about the clearest way it could be said, “As expected, we did experience revenue headwinds this quarter, including from Apple’s [privacy rule] changes that are not only negatively affecting our business, but millions of small businesses in what is already a difficult time for them in the economy.”

Facebook has proven time and time again that when the need for advertising revenue runs up against a question of ethical treatment of users, it will always be the ethics that give way.

It’s also interesting that Europe is light years ahead of North America in introducing legislation that protects privacy. According to one Internet Privacy Ranking study, four of the five top countries for protecting privacy are in Northern Europe. Australia is the fifth. My country, Canada, shares these characteristics. We rank seventh. The US ranks 18th.

There is an interesting corollary here I’ve touched on before. All these top-ranked countries are social democracies. All have strong public broadcasting systems. All have a very different relationship with advertising than the U.S. We that live in these countries are not immune from the dangers of advertising (this is certainly true for Canada), but our media structure is not wholly dependent on it. The U.S., right from the earliest days of electronic media, took a different path — one that relied almost exclusively on advertising to pay the bills.

As we start thinking about things like the metaverse or other forms of reality that are increasingly intertwined with technology, this reliance on advertising-funded platforms is something we must consider long and hard. It won’t be the companies that initiate the change. An advertising-based business model follows the path of least resistance, making it the shortest route to that mythical unicorn success story. The only way this will change will be if we — as users — demand that it changes.

And we should  — we must — demand it. Ad-based tech giants that have no regard for our personal privacy are one of the greatest threats we face. The more we rely on them, they more they will ask from us.

Whatever Happened to the Google of 2001?

Having lived through it, I can say that the decade from 2000 to 2010 was an exceptional time in corporate history. I was reminded of this as I was reading media critic and journalist Ken Auletta’s book, “Googled, The End of the World as We Know It.” Auletta, along with many others, sensed a seismic disruption in the way media worked. A ton of books came out on this topic in the same time frame, and Google was the company most often singled out as the cause of the disruption.

Auletta’s book was published in 2009, near the end of this decade, and it’s interesting reading it in light of the decade plus that has passed since. There was a sort of breathless urgency in the telling of the story, a sense that this was ground zero of a shift that would be historic in scope. The very choice of Auletta’s title reinforces this: “The End of the World as We Know It.”

So, with 10 years plus of hindsight, was he right? Did the world we knew end?

Well, yes. And Google certainly contributed to this. But it probably didn’t change in quite the way Auletta hinted at. If anything, Facebook ended up having a more dramatic impact on how we think of media, but not in a good way.

At the time, we all watched Google take its first steps as a corporation with a mixture of incredulous awe and not a small amount of schadenfreude. Larry Page and Sergey Brin were determined to do it their own way.

We in the search marketing industry had front row seats to this. We attended social mixers on the Google campus. We rubbed elbows at industry events with Page, Brin, Eric Schmidt, Marissa Mayer, Matt Cutts, Tim Armstrong, Craig Silverstein, Sheryl Sandberg and many others profiled in the book. What they were trying to do seemed a little insane, but we all hoped it would work out.

We wanted a disruptive and successful company to not be evil. We welcomed its determination — even if it seemed naïve — to completely upend the worlds of media and advertising. We even admired Google’s total disregard for marketing as a corporate priority.

But there was no small amount of hubris at the Googleplex — and for this reason, we also hedged our hopeful bets with just enough cynicism to be able to say “we told you so” if it all came crashing down.

In that decade, everything seemed so audacious and brashly hopeful. It seemed like ideological optimism might — just might — rewrite the corporate rulebook. If a revolution did take place, we wanted to be close enough to golf clap the revolutionaries onward without getting directly in the line of fire ourselves.

Of course, we know now that what took place wasn’t nearly that dramatic. Google became a business: a very successful business with shareholders, a grown-up CEO and a board of directors, but still a business not all that dissimilar to other Fortune 100 examples. Yes, Google did change the world, but the world also changed Google. What we got was more evolution than revolution.

The optimism of 2000 to 2010 would be ground down in the next 10 years by the same forces that have been driving corporate America for the past 200 years: the need to expand markets, maximize profits and keep shareholders happy. The brash ideologies of founders would eventually morph to accommodate ad-supported revenue models.

As we now know, the world was changed by the introduction of ways to make advertising even more pervasively influential and potentially harmful. The technological promise of 20 years ago has been subverted to screw with the very fabric of our culture.

I didn’t see that coming back in 2001. I probably should have known better.

Marketers and Funnel Vision

Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference. 

The Road Not Taken by Robert Frost

A couple of years ago, I saw an essay by Elijah Meeks, former Data Visualization Society executive director, about how “We Live in a World of Funnels.” It started out like this:

“You think you’re reading an essay. You’re not. You’re moving through a funnel. This shouldn’t surprise you. You’ve been moving through funnels all day.”

No, we haven’t.

Sorry, Elijah, but the world is not built of funnels. Funnels are arbitrary lenses, invented by marketers, that are applied after the fact. They have nothing to do with how we live our lives. They’re a fabrication — a tool designed to help simplify real-world data and visualize, one that’s been so compelling that we have focused on it to the exclusion of everything that lives outside of it.  

We don’t live in a world of funnels. We live in a world that’s a maze of diverse and complex potential paths. At each intersection we reach, we have to make choices. For a marketer, that seems like a daunting thing to analyze. The funnel model simplifies our job by relying on successful conversions as the gold standard and working backwards from there. By relying on a model of a funnel, we can only examine “the road taken” and try to optimize the hell out of it. We never consider the “road not taken.”

Indeed, Robert Frost’s poem, from which I borrowed a few lines to start this post, is the ultimate misunderstanding of funnels. It is, by most who have read it, considered the ultimate funnel analysis, a look back at what came from choosing the “road less traveled.” But as reviewer David Orr pointed out in this post, it’s at least as much about what might have happened outside of the “funnel” we all try to apply to the poem:

“Because the poem isn’t ‘The Road Less Traveled.’ It’s ‘The Road Not Taken.’ And the road not taken, of course, is the road one didn’t take—which means that the title passes over the ‘less traveled’ road the speaker claims to have fol­lowed in order to foreground the road he never tried. The title isn’t about what he did; it’s about what he didn’t do. Or is it? 

The funnel model is inherently constraining in its perspective. You are forced to look backward through the tiny hole at the bottom and speculate on what prevented others from getting to that point.

Why do we do this? Because, initially anyway, it seems easier than other choices. It’s like the old joke about finding the inebriated man outside a bar looking for his car keys under the streetlight. When asked where exactly he lost them, he points behind him to a dark alley.

“Why are you looking for them here then?”

“The light’s better here.”

It certainly seems the light is better in a funnel. We can track activity within the funnel. But how do you track what happens outside of it?  It may seem like a hopeless task, but it doesn’t have to be. There are universals in human behavior that can be surprisingly predictive.

Take B2B buying, for example. When we did the research for the Buyersphere Project, our “a-ha” moment was realizing what a massive role risk had in the decision process.

Prior to this research, we — like every other marketer — relied on the funnel model. Our CRM software had funnel analysis built into it. So did our website traffic tracking tool. Funnels were indeed pervasive — but not in the real world, just in the world of marketing.

But we made a decision at the earliest stage of our research project. We tossed aside the funnel premise and started at the other end, understanding what happens when a potential buyer hits what Google calls the ZMOT: the Zero Moment of Truth. This is defined as “the moment in the buying process when the consumer researches a product prior to purchase.” When we started asking people about the Moment — or the moments before the ZMOT — we found that in B2B, risk-avoidance trumps all else. And it gave us an entirely different view of the buying journey we would never have seen from inside the funnel.

We also realized we were dealing with multiple definitions of risk, depending on whose risk it was. In the implementation of a new technology solution, the risk definition of the person who would be using the solution is completely different than that of the procurement officer who will be overseeing the purchase process.

All this led to a completely different interpretation of buying motivation — one driven by emotions. If you can understand those emotional factors, you can start to understand the choices made at each intersection. It lets us see things beyond the bounds of the “funnel.”

Marketing funnels are a model — not the real world. And as statistician George Box said, “all models are wrong, but some are useful.” I do believe the funnel can be useful, but we just have to understand that there’s so much you can’t see from inside the funnel.