Tag Archives: Facebook

Facebook is Actually Not Free

This is our monthly installment of ‘Delayed Grasp of the Obvious’.

Just before Facebook Week last week I volunteered a point of view that was posted in Kevin Coupe’s excellent retail blog MorningNewsBeat.com, questioning that as FB doesn’t charge, how can it compensate users for breach of their private data?  (the letter is shown below).

Fair enough question and we saw Zuckerberg, Sandberg & Co. take some baby steps last week after the Congressional rotisserie.

But I made a huge error when I said “Facebook is free already”.  Palm to forehead.

Facebook is not free.   Nothing is free.

As has been famously stated and variously attributed, ‘There ain’t no such thing as a free lunch”.  Meaning, there’s always a hidden or implied cost or quid pro quo with anything positioned as ‘free’.

In Facebook, you don’t pay cash, you pay with something much more dear:  YOU.

In fact, Facebook, and all other ‘free’ sites, are not benevolent social facilitators, they are essentially match.com-like dating sites that try to hook up advertisers with hot to trot consumers.  Except you don’t volunteer things like ‘long walks on the beach’.   All you do is go about your daily life, posting and clicking, and your profile is created in the background, with data you didn’t even know was being collected.

Basic stuff, but really brought home by the latest Facebook issues, which look to become a watershed moment in privacy practices.

As a marketer doing anything online, understand that your future efforts to connect with consumers is going to have to deal with increasing amounts of skepticism, where consumers make a more informed decision about whether hitting that last click-bait article, or signing up for something that looks free.
– and increasing privacy laws will likely mean greater disclosure and more overt opt-in requirements.

As a consumer, realize that online you are first a commodity, not some company’s friend, and you need to take exceptional care of YOU.

The days of ‘free’ services are waning.  And this is not just another conspiracy theory.

MNB_Logo1_257x98
April 6, 2018

I liked this email about the Facebook situation from MNB reader David Tuchler:

So here’s the thing: any normal business that screwed up or compromised its customers’ privacy or violated any other customer rights would be compelled to offer some sort of make-good (morally if not legally). If the laundry scorches your shirt, they cover the cost of the shirt or give you a credit. Even Equifax offered a identity protection service, even if it was sort of a ‘honestly, you can trust me again’ thing. The point is that the injured party is somehow compensated.

Facebook is different – it does not collect revenue from its consumer users. So even with millions of its users’ confidential data breached and a market cap of $464 Billion (that’s over $200 per user or $6000 per affected user), does Facebook have a responsibility to somehow make things right? And how would that even happen? In-kind gestures (we’ll extend your subscription another 3 months) doesn’t necessarily work here – – not only because FB is free already, but I don’t want any more FB – – I actually want less.

This is one of those areas where the law hasn’t kept up with the fast-moving nature of online activity (sort of analogous to the online sales avoid sales tax loophole). To the extent these social media companies have no avenue to make things right, I would have to agree with the European direction of requiring more strict and obvious safeguards and opt-in mechanisms so that risks are made clear and users can make a more rational judgment on whether to join or not.

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‘Facebook Real’ can help you handle fake news – – from your friends

Posted on

As you may have heard, social networking giant Facebook today quietly announced the test marketing of an updated version, called Facebook Real, with the stated objective of improving the Facebook user experience.

Facebook ratings

Facebook has always taken some flak about its negative effects, so this seems a worthwhile goal.  But cynics as we are, The Armchair MBA feels Facebook Real is just a misdirection play to divert attention from the ongoing Cambridge Analytica scandal (CEO Zuckerberg is scheduled to testify before the US Congress in the near future).

In any case, this is an example of how a seemingly innocuous reason-for-being (exploit the constant human needs of attention and affirmation to create an online community and attract eyeballs) can instead have the opposite effect (while also creating an international political scandal).
In today’s online world, nothing is 100% predictable.   Or even 50%.
——

Since its founding in 2004, Facebook in 2017 has reached over 2 billion active users and a market value of over half a trillion dollars (although the recent scandal chopped about $50 billion – !! – off its market cap).

Along the way, however, the effect of never-ending positive posts from friends combined with lack of personal interaction has drawn increasing criticism for its negative psychological effects – – leading to a press release in December 2017 from Facebook’s own researchers admitting that sometimes people “felt worse” after spending time online.

FB Research

Facebook has itself experimented with a ‘dislike button’ (which they call a ‘downvote button’) to give users some measure of control.  But this hasn’t gone anywhere.

https://www.thedailybeast.com/facebook-is-testing-a-dislike-button-called-downvote-with-select-users

Downvote 2

How will Facebook Real be different?
Facebook Real is a different way to help some users better cope with a continuous stream of positive posts, while still staying connected.

It is well known that the carefully curated posts of acquaintances’ positive experiences – – an accomplishment, a great vacation, a financial windfall, a celebrity sighting, etc. — are in reality your friends’ personal Highlight Reels.  No one has a life as fabulous as any single person on Facebook, let alone everyone combined.
Indeed, as the Facebook researchers noted, “reading about others online might lead to negative social comparison” – – in other words, feelings of relative inferiority.

 

Facebook Real takes a different approach that is elegant in its simplicity. It essentially attempts to make feeds more representative of real life, including the ups as well as the downs – – and relies on Facebook’s seemingly endless personal data trove, combined with some remarkable algorithmic programming.

FacebookReal

In the test, every 2 or 3 actual positive posts from a person will be supplemented by one ‘fake’ post that is designed to reflect the realities of life. These ‘reality’ posts will be woven into the feed naturally, based on what Facebook knows about you.

For example, if Person A posts ‘my daughter is on the honor roll’ followed by ‘my husband just achieved his karate green belt’, or ‘got first row tickets to the Final Four’, it will be followed by a random post that Facebook has created but which is based on the person’s actual life.
If Facebook’s data shows that this person has, say, experienced a drop in credit score, a mortgage default, a threatening blackmail note from a spurned co-worker, a pet that failed obedience training, or a child that was recently bailed out of prison, this will be skillfully used to create a real-looking post sent from that person.  The ‘sender’ will not be aware of this ‘faux post’.

fb - final

The result will theoretically provide a break from the incessant stream of positives and show that everyone actually deals with real life, leading to a more interested, engaged and stable universe of Facebook users.

The downside is of course that Facebook Real relies on leveraging ever-increasing and ever-intrusive data on its users, which is not consistent with current attitudinal trends.

Look for more information on Facebook Real in coming weeks, and please contact The Armchair MBA if you suspect you may be in the test group. We’ll (anonymously, of course), provide an update in a future post.

What an Epic Fail Integrated Marketing Campaign Looks Like

Monday’s Wall Street Journal delivered a rather amazing example of how NOT to promote a product, along with the news and pithy commentary.

Most marketers know that messaging can be maximized if deployed consistently across vehicles.  This is apparently more difficult than it seems.

Page A7 of today’s WSJ featured a full-page color ad for €5.99/$7.99 dress shirts, from a manufacturer somewhat oddly named ‘Mosegi & Haberdashery’.

Mosegi Ad 2

It is important to keep in mind that a full-page color ad carries a price tag of $386,865.98.

A cursory scan of the ad shows a few obvious errors:

  • CEO Earl Mosegi’s promise includes: “…will not lose their shirt off there back” (sic)
  • Featured product claim: “Women shirt now available”
  • Key contact called “Sale Representative”

Mosegi_Quote

It gets worse.

  • Ad contains a QR code that is inactive
  • Ad implies a Facebook page (but no URL) which if you find it, not only doesn’t reference the ad, it features products not remotely like a dress shirt. Seems to be targeted at kids.  And it hasn’t been updated since July 2014.

Mosegi_Cartoon

But wait – there’s more!

  • The website itself is remarkably incomplete but also quite entertaining.
    • Of 8 main tabs, only 3 have content. There is no contact info.
    • The all-important ‘ORDER’ page contains just a static image – – there is no ordering mechanism for all the consumers who have seen the ad to take action online!
    • The ad shows a minimum order of 12 shirts; the website lists minimum orders of both 100 and 300 shirts. Clearly this is a wholesaler trying a direct consumer appeal.
    • Most remarkably, an unfortunate keystroke error removed a key letter from the word ‘shirt’, resulting in an entirely new word, which shows up on the home page as well as every single header.

Screen Shot 2014-10-27 at 5.07.52 PM

This brings up a few key questions:

  • Is the entity who placed this ad a) the playboy son of a Turkish billionaire setting up shop online? b) an unemployed Russian hacker? c) a Nigerian scammer? or d) a third-grader?
  • How does an ad that has a bargain-basement pitch, contains so many obvious errors and leads to an online dead-end, get approved by the Journal’s advertising department? (guess: maybe $387k has something to do with it?)
  • Is this our official notification that QR codes are truly dead?
  • Does a re-integrator exist?

Marvin

This is a campaign that seems to have been thrown together with not much thought other than a price point and a photo.

These people really need to get their shirt together.

One thing this ad is excellent at is demonstrating, by omission, some obvious basics of an integrated campaign:

  • Start with a compelling message/offer (arguably they are ok here)
  • Infuse every element of your marketing mix with the same consistent message, offer and look
  • Make it easy for customers to take action
  • For crying out loud, have someone who knows the language check for accuracy.   (The Armchair MBA is particularly pained at this last point, as its companion business, Peregrine Advisors, specializes in helping clients avoid online gaffes).

The Armchair MBA works hard to scour the globe for stories worthy of your attention. This one fell into our lap.

As the saying goes, better lucky than good.

Top 10 2013 Mostly Accidental Marketing Lessons

This is the time of year where instead of being productive, people put together lists.
So here’s my look back at 10 events in 2013 that provided (purposely or not) great learning.

2013  Lesson 1:  Measure Twice, Cut Once.  Make that: Measure three times.
Healthcare.gov rollout
(honorable mention for Chicagoans:  Ventra public transit card rollout).
– So many lessons here.  It’s the lesson that keeps on giving.  Reminder: even if your brand isn’t one-sixth of the national economy you probably still want to test a new e-commerce site.  Test, test and then test again.

jon_stewart_obamacare

2013 Lesson 2: A brand CAN do a 180 in a Single Day 
Miley Cyrus
– And in this case it took about 5 minutes.  The recipe: take one tweens’ idol named Hannah Montana.  Remove most clothes, liberally add makeup, a big foam finger and nationally televised awards show; mix aggressively using the body and add a large dash of idiot grin.  Voila!  You’ve now transformed from Hannah Montana into what looks like the love child of Gene Simmons and Dita Von Teese, without the charm.
The winner:  probably Miley and her handlers, but hard to know yet.  The clear losers: Millions of formerly innocent Hannah fans.  Also, the general cultural level in the US.
So yes, it is possible to completely change your brand’s image in a day.  But it might involve twerking.

Hannah to Miley

2013 Lesson 3: There is such a thing as too much transparency
Lululemon
– Due to quality control snafus, Lululemon’s yoga pants delivered a little more than was supposed to meet the eye.  The media, always a model of sober restraint when it comes to high-minded topics like see-through clothing, did its best to spin this story as salaciously as possible.  Ultimately it went viral, resulting in loss of gobs of market value, as well as Lulu’s top management. At least they kept their sense of humor about it. (actually, there is a real lesson here: at the end of the day it’s about the product – and you can never take your eye off the ball).

Lululemon Store Window

2013 Lesson 4:  The early bird still catches the worm – – if he tweets about it.
Oreo cookies
– We now live in an era that enables, and requires, real-time marketing.  As has been reviewed ad nauseam (guilty!), Oreo slam-dunked it with a timely tweet during the Super Bowl blackout.  Meanwhile, given the opportunity of Marco Rubio’s magic cotton-mouth TV moment, the Poland Spring ad team not only didn’t stick the dive, they missed the pool entirely.

oreo-super-bowl-tweetMarco Rubio drink

2013 Lesson 5:  When life gives you lemons, make lemonade.  When your meatball supplier tries to slip you some horsemeat, clean house IMMEDIATELY.
IKEA
– When IKEA learned that some of its famous meatballs (150 million annually!) might contain traces of horsemeat, it immediately got rid of all meatballs in inventory, whether suspect or not.  Cost of write-off?  Probably pretty high.  Benefit to reputation by immediately taking action?  Priceless.  Sales of meatballs since then?  UP.

IKEA meatballs

2013 Lesson 6:  Hint: ‘Fail Fast’ is really just a euphemism for Test and Learn.  It doesn’t mean your goal is actually to fail fast.
JC Penney
– Here is a retailer that tried to do a 180 without twerking.  Or more importantly, without considering that its customers preferred periodic discounts.  Boom.
Easier to adapt to customer preferences than to try to force them to adapt to you.

jcpenneymadnessJCP quarterly

2013 Lesson 7:  There is No Such Thing as Bad PR (at least for Jeff Bezos)
Amazon
– Amazon’s eerie delivery drones cleverly debuted on ’60 Minutes’ the day before Cyber Monday.  Never mind that if you give it about 5 seconds’ thought, the barriers are significant (snow? wind? power lines? privacy issues? teen boys with slingshots?) – what it really shows is that in addition to any product you can think of, Amazon’s mission apparently also includes delivering PR to all homes.

Amazon drone

2013 Lesson 8:  If you go for the ‘wink-wink, joke’s on me’ approach, and people don’t get it, then ‘wink-wink, the joke’s on you’.
Honda/Michael Bolton Holiday campaign
– If you didn’t see them, these spots feature the man of the strained tenor and shorn mullet singing soulful holiday-esque tunes from atop a Honda, next to a Honda, in a Honda showroom, behind a piano, behind a guitar, all to the indecipherable reactions of surprised, baffled, younger presumed car shoppers.  It’s difficult to tell what the point is.  The obvious assumption is that this is a quid pro quo: the 60-year old Bolton (perfect for a younger target!) has a new album that needs promoting (true) and Honda needs some breakthrough quality in the holiday car ad environment that generally features obnoxiously gift-wrapped luxury cars (true again).
But what’s Bolton doing up there on that car?  Apparently, according to Adweek, this campaign is ‘poking fun at itself with melodramatic guitar solos and idiotic lyrical gems like “This special time of year, it’s filled with joy and cheer, for me and you and you and you, too’.”  Well, I know something about misplaced melodrama and idiot lyrics and I didn’t catch it.  If there’s a wink in there somewhere, it’s subtle enough as to be invisible.
So we’re left with a spot with bland cars, being promoted by bland music – – a perfect match, but I suspect probably not what they were going for.
The American public as a rule doesn’t respond well to ‘subtle.’   Witness, if you will, Ron Burgundy for Dodge – – a more effective celebrity hookup.

Bolton on car

2013 Lesson 9:  When in Rome, do as the Romans do.  When trying to break into Southern California, and your name contains the word ‘Fresh’, don’t pre-wrap the fruits and vegetables.
Tesco Fresh & Easy
– This one already has a coda. Big UK retailer Tesco created its Fresh & Easy chain in late 2007 to penetrate the Western US market with a fresh new smaller format store, famously after significant consumer research.  The experiment failed when consumers didn’t respond well to new formats, new food presentation, and in some cases, truly foreign concepts.  Ultimately F&E was sold to Yucaipa, which has added “competitive pricing, improved hours, fresher foods and assisted checkout” according to management.  Everything, it appears, has been changed except the name.
– The obvious lesson – – listen to your customers (see Lesson 6).

fresh and easy vegetables

2013 Lesson 10:  You can say Social Media and B2B Marketing in the same sentence
Maersk Shipping
– Maybe it’s the exotic locations where its ships are shown.  Or maybe it’s just the fact that deep down we’re all little kids and are awed by really cool big boats.  Whatever the appeal, big freight shipper Maersk found a way to go from zero to one million+ in Facebook likes in about a year (good Forbes article here).  Of course, no one places container orders on a Facebook page, but for very little cost (repurposing archival company photos) this enhances the Maersk brand, distances it a bit from its competitors, and likely provides meaningful recruiting and morale benefits.

Maersk Facebook

Probably the big lesson for 2013 has been that while many old conventions are being challenged (e.g. static campaigns, role of social media), the key marketing fundamentals are still alive and well:  understanding your customers and their needs is the surest way to success (or at least avoiding being in next year’s write-up).

Happy New Year.