« Co-Creating and the growing power of 'average person like me' | Main | Break the Downward Spiral »
March 5, 2005
The future -- social computing ?
I had an opportunity to visit on the phone with Chris Charron of Forrester Research. We were discussing the opportunity for public relations in a world of blogs, fragmentation of the media business and lack of trust in institutions. He put forward the concept of Social Computing, in which consumers take signals from their peers. Trust is established by dialogue, intelligent up-selling and respect for consumers' personal information. He posits that in a world where consumers can switch easily among brands, the key source of competitive advantage is ease of experience, not simply features or price points. He suggests further that every consumer touch point, from relevant customer service to relevant and intelligent marketing is critical to successful positioning.
I asked him specifically about my notion of consumers co-creating brands with their corporate owners, with input to product development and shared responsibility for success. He thought this was absolutely right. Companies need to get over their fear of lack of control, to tap into the consumer passion and thereby drive the marketing process. The early advisory to the connectors, the brand loyalists who can drive the brand forward, will allow them to spread the word in a credible fashion. This is especially useful in a crisis scenario, where traditional third parties such as academics and doctors, can be supplemented by average people who use the product. Note the power of the testimony of VIOXX users at last week's FDA hearings on the safety of arthritis medications (I want my VIOXX back, was the common refrain).
One other fundamental change in a world of social computing--a shift in emphasis in the marketing cycle from spending on awareness to spending on establishing preference. Chris believes that the more measurable forms of marketing will win. This certainly puts the onus on the PR industry to come up with less expensive, more rapid forms of feedback than the customary column inches or advertising equivalent measures. Perhaps we can focus on the catalysts, those who are the drivers in a given category, as an early detection system, a proxy for broader public opinion.
Two other learnings from the past week that are significant are those in the PR field. Verizon Wirelss and Telnor of Norwary are developing a broadband wireless service called V Cast. For a subscription fee of $16 per month, users can receive localized programming such as traffic and weather on cell phones. Fox is already developing content similar to the soap opera the O.C. to appeal to the teen audience. Fifty segments are being filmed of the Sunset Hotel, a scripted show. Another initiative under development for the small screen is Amush Makeover, one minute vignettes that include grooming tips. We should aggressive in developing creative concepts, particularly to reach the teen audience.
One other is the progress of Eink, an electronic newspaper that comes out of the MIT Media Lab. The device will be foldable, black and white particles on an electronic display. Is this simply a cost saving device for newspapers, with no delivery, printing or paper costs. It is also updated wireless like a portable wire service. The first devise, which I saw today, was just launched in Japan and will be coming to the U.S. shortly. I would argue that it is also a wonderful bridge for those of us addicted to carrying a paper in a continuously updated format. It will also be a more attractive advertising vehicle than the PC delivery of the interactive edition.
In short continuous learning and experimentation is necessary in the PR business. We cannot sit still and allow ourselves to be painted into the corner. As traditional outlets of newspapers and television morph into next generation vehicles, we should be leading our clients, not waiting for the advertising guys to offer sponsored content. The more free-wheeling the discussion, the higher the level of trust--the future is ours to build. I look forward to your thoughts about the future direction of PR.
Richard
Posted by Edelman at March 5, 2005 9:01 AM |
Comments
You hit the nail on the head with your comment about companies needing to get over their fear of lack of control. PR agencies need to get over that fear as well.
There's much more to be gained by entering into a dialogue than trying to control something - the brand, the message, whatever - that really can't be controlled.
Posted by: David Parmet at March 5, 2005 10:16 AM
David,
This control issue is a difficult one for companies and PR firms Note how few PR firms are really teaching their employees about cyberworld Seems like most just know how to pitch the NY Times which is good but not sufficient Thanks for writing
Posted by: Richard Edelman at March 7, 2005 3:43 PM