Photo Credit: TechCrunch via flickr
The Wall Street Journal’s Deepa Seetharaman published this great article: Facebook Takes Aim at Search Again. Take time to read Deepa’s article because she delivers important insight on Mark Zuckerberg’s unrelenting competitiveness and strategic genius.
Photo Credit: Refracted Moments(TM)
Spoken and written words STILL have a powerful and influential impact in a world increasingly driven by computer code, big data, and mathematical algorithms.
Ruth Porat, Google’s Chief Financial Officer (CFO), demonstrated during her June 16th investor relations conference call with Wall Street analysts why communicating with purpose, managing expectations, and showing “I’m actively listening” are still (and will continue to be) the hallmark skills of a successful 21st Century Trusted Advisor.
Photo Credit: LendingMemo
LinkedIn recently announced new analytics tools for The LinkedIn Publishing Platform. The company continues delivering on its value promise: Help members archive and articulate their accomplishments so they can achieve and manage their goals. That promise is one of many reasons why I’m a committed LinkedIn shareholder.
The company featured a LinkedIn member’s entire “How-To” post for maximizing every feature of the toolset to promote the launch. One word. Classy. (more…)
Photo Credit: Anton Diaz
Hi Social Media ReInvention Community. Sorry for not publishing and keeping in touch over the last few months. Some personal hiccups derailed and distracted me. Writing about these share-worthy links and sharing my take on why you’ll find them valuable is part of the process to get myself on track. (more…)
Photo Credit: clydeorama
Farhad Manjoo of The New York Times published this thought-provoking article: Google’s Time At The Top May Be Nearing Its End. Manjoo discusses how Google’s current and past domination in desktop search advertising is leading to the source of its undoing as a technology leader. (more…)
Photo Credit: Andy Ihnatko
I’m an Apple Stockholder and Apple Tribal Member with Tremendous Confidence in Our Leader, Tim Cook. He’s the right person to rocket Apple’s fanatic loyalty beyond its fanatical consumer base. Ginni Rometty, IBM’s CEO, describes Cook as the “hallmark of a modern-day CEO. It’s all about clarity of vision and knowing what to do and what not to do.”
Yet, critics shout: “Tim Cook is NOT Steve Jobs!” I disagree. Cook is a lot like Jobs.
Apple’s 21st Century Innovation Model is SICC: Simplicity + Inclusion + ControI + Collaboration
SICC Rhymes with SICK (and means the cool kind, not the feeling ill kind). Charlie Rose published his Tim Cook conversations after Apple’s September 2014 introductions for the iPhone 6, iPhone 6+, Apple Pay, and Apple Watch. Their conversations reveal Cook’s strategic vision for Apple and The Apple Ecosystem. His ecosystem-driven strategy explains the rationale for two (2) major 2014 corporate decisions:
Cook explains these major decisions within the context of these central themes:
Staying Focused Anchors Apple. Cook elaborated (paraphrasing):
“Unlike other companies, Apple’s objective is not to make larger product portfolios.”
“All of Apple’s major products could fit on this small table.” (in reference to Charlie Rose’s iconic interview set)
“It’s hard to edit. It’s hard to stay focused. The hard part is deciding what NOT to work on.”
Diversity in Thought Fuels Apple Innovation and Design (17:13 – 20:23). Cook’s leadership mission is ensuring Apple senior executives and team members collaborate at an incredible level. That mission begins with recognizing individuals who are historically strong Apple contributors. During this point in the conversation, Cook enthusiasically mentioned five to six senior executives (by first name) making considerable impacts during their Apple tenure — like Angela Ahrendts).
Brad Stone’s September 2014 BloombergBusinessweek article highlights Cook’s moves to include new perspectives at Apple. From January 2014 to September 2014, Apple hired approximately 20 senior executives from multiple industries (direct quotes below):
“(Cook) is very focused on finding a very wide range of people. It’s not automatically the way you think about diversity. It’s about bringing in experience, skill set, and perspective.” — Susan Wagner, founding partner and director of asset-management firm BlackRock.
“(Cook) is comfortable enough to say ‘we need help here,’ and then he goes out and gets it.” — Jimmy Iovine, Co-Founder of Beats Electronics.
It’s the Ecosystem Stupid! (h/t James Carville)
Betting the Farm on The Apple Ecosystem. Cook’s strategic bet makes collaboration an Apple strategic imperative. Apple senior executives are functional experts who collectively work as a team. Horizontal product development enables integration of hardware, software, and services to produce a killer product. Cook explains (20:08 – 20:23; paraphrasing):
“Respecting, trusting, and complementing one another (in thought and skills) is what makes this all work.”
Collaboration may be a virtue, but Cook insists it’s more of a strategic imperative. Aligning thousands of employees is crucial now that “the lines between hardware, software, and services are blurred or are disappearing,” he says (Cook). “The only way you can pull this off is when everyone is working together well. And not just working together well but almost blending together so that you can’t tell where people are working anymore, because they are so focused on a great experience that they are not taking functional views of things.”
The result is only now becoming apparent with services that work across different Apple devices. Embedded in the iPhone 6 and the new iOS 8 and Mac OS X Yosemite operating system is a feature called Continuity, which lets users start an e-mail or some other task on their Mac, pick it up on their iPhone, and then move it to their iPad or even the Apple Watch.
(Cook continues) “We would never have gotten there in the old model. These new products are reminders of why we exist.
The things we should be doing at Apple are things that others can’t.”
Google Is Apple’s Top Competitor (32:30 – 36:00). Cook’s answer to Rose’s “Who’s Your Competition?” question speaks volumes. He recognized Google twice during their conversation as Apple’s most formidable competitor.
He dismissed everyone else including Samsung and Amazon. Microsoft never entered the conversation.
Larry Page makes it no secret he’s pursuing an Android ecosystem-driven strategy. Google acquired Motorola Mobility in 2011 to gain control of the patents bolstering and protecting Android (and subsequent Google products and services). From Google’s Investor Relations Site, Page describes his strategic vision and rationale for selling Motorola Mobility to Lenovo):
“Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
Google Targets The Consumer Ecosystem. Just ask Tony Fadell, CEO and Founder of Nest. Just ask Walter Isaacson, Steve Jobs’s biographer. In January 2014, Isaacson declared Google passed Apple in innovation supremacy with the Nest acquisition (refer to CNBC video below).
Matthew J. Belvedere’s CNBC article concluded Apple and Tim Cook fell behind:
While acknowledging the China Mobile partnership is a “big deal” for Apple, he said (i.e., Isaacson) Google-Nest exemplifies the “amazingly strong integrated strategy that Google has to connect all of our devices, all of our lives, from our car, to our navigation system, to how our garage doors are going to open.”
Isaacson also pointed out that Nest co-founder and CEO Tony Fadell will be joining Google as part of this deal. “Fadell was one of the team that created the iPod. He was very deep into the Apple culture … when Apple was so innovative.” To play catch-up, Cook has to think about what industry he wants to disrupt next, Isaacson said. “I think Steve Jobs would have wanted as the next disruptive thing to either have wearable-like watches or TV, an easy TV that you can walk into the room and say put on ‘Squawk Box’ … or disrupt the digital camera industry or disrupt textbooks.”
“We ought to see in 2014, Apple do something huge,” Isaacson said.
Google-Android Commands Global Market Share, but Apple-iOS Captures Highest Profitability. Android is the defacto global, smartphone operating system. Conner Forrest’s Tech Republic article proves Android market share dwarfs Apple-iOS by a factor of four (4). His research strengthens Isaacson’s argument how Google is positioning itself as a consumer ecosystem powerhouse:
Photo Credit: Conner Forrest, Tech Republic
But, Does Market Share Dominance Mean Google Makes More Money than Apple? Tony Bradley’s November 2013 Forbes article shows Apple dominates profitability capture versus Android. That’s why “staying focused” anchors the Apple’s core values. Though not externally stated, Jobs knew and promoted that making money matters. Making money (or in Apple’s case, tons of it) bestows the rare, parallel luxury to sustain business AND develop new innovation.
Photo Credit: Conner Forrest, Tech Republic
Photo Credit: Neil Hughes, Apple Insider
Making Tons of Money Isn’t the Point. Apple almost went bankrupt 17 years ago. That’s the age of a teenager — it wasn’t that long ago. Walt Mossberg‘s November 2014 <re/code> article, The Mac’s Second Act: From Obscurity to Ubiquity, lends important perspective to Apple’s current financial situation versus its dire days in 1997. Jobs knew he needed someone of Cook’s supply chain and operations genius. That’s why Jobs hired Cook.
In 1998, Jobs and Apple needed Cook (not the other way around).
Photo Credit: W_Minshull
Driving Collaboration and Accessing Innovation Extends Beyond 1 Infinity Loop. The Charlie Rose-Tim Cook conversation turns instructive when Rose asks Cook if Apple is “more open (around 22:26).” Cook’s responses on iOS app developer relationship management, the IBM strategic alliance, and the Beats Music and Beats Electronics acquisition signal his mantra that creativity and innovation are a team sport (App Developers: 30:20 – 32:12; IBM: 22:26 – 25:37; Beats: 26:14 – 29:00).
Apple Manages Relationships with 9 Million Registered iOS Developers. MacNN News reported the number of developers registered with Apple has increased 47 percent since last year to 9 million. According to the United States Census Bureau, if “Apple iOS Developer City” was an American city, it’s population trumps New York (with room to spare for Nashville).
Cook recognizes the iOS developer community is key to Apple’s current and future success (paraphrased quotes from Rose conversation; 30:20 – 32:12):
“The June 2014 developer’s convention was all about giving developers access to iOS so Apple and iOS have access to innovation.”
“We treat working with them (i.e., the iOS developer community) that it’s Apple’s privilege.”
“Our (i.e., Apple’s) developers can sell their product (i.e. iOS app) worldwide in the Apple App store in 155 countries.”
Show App Developers The Money. Apple Does. Google Does Too. But, Apple developers earn tons more. Andreesen Horowitz Analyst Benedict Evans proves Apple paid app developers five times (5x) more revenue than Google. In the past 12 months, Apple paid developers $10 billion versus $5 billion by Google.
Photo Credit: Benedict Evans
Tim Cook Wants the Apple Ecosystem to Command the Enterprise Market (22:26 – 25:37). Steve Jobs transformed our daily consumer lives. Cook wants to reinvent our daily professional lives. That’s the mission objective for uniting with IBM, a former adversary. Cook shared with Rose the following anecdotes (paraphrasing):
“We believe we can change the way people work at an enterprise level.”
“The vision is to fulfill the unmet needs of the industry verticals down to the granular specificity of the job itself.”
“We can change the way people work. We spend so much of our lives working.”
Reuters reports the Apple-IBM alliance is developing inroads into the financial services industry (e.g., companies like CitiGroup). Furthermore, the same Reuters article states:
“The iPhone maker has worked closely with a group of startups, including ServiceMax and PlanGrid, that already specialize in selling apps to corporate America. The two people familiar with the plans, but who could not speak publicly about them, say Apple is already in talks with other mobile enterprise developers to bring them into a more formal partnership.”
A Play for The Enterprise Version of The Internet of Things? Sounds like it to me. Now, that would be both transformative and lucrative. Stay tuned. I’m looking forward to learning about the Apple-IBM alliance’s penetration and progress after Q1 2015 (even more than the Apple Watch Launch).
On the Surface, Beats Masquerades as a Headphone Company. Unseen by the deal’s critics is how Tim Cook discovered powerful and influential diversity in thought.When Rose asked Cook, “Why did you buy a headphones company?” he responded (26:14 – 29:00):
“Talent. It’s the idea of gaining great talent.”
“The creative genius of Jimmy Iovine and Dr. Dre.”
“Iodine’s deep knowledge of the entertainment vertical (i.e., music industry)”
“Dr. Dre knows artists and is an artist.”
Cook Recognizes Remarkable Human Centered Design (HCD) When He Sees It, Hears It, and Feels It. Cook shared with Rose how “not all subscription services are alike.” His enthusiasm in describing Beats Music after experiencing it himself is palpable (paraphrasing):
“Beats recognized the importance human curation can make in how you feel and experience something.”
“It (Beats) affects how you feel.”
“You know it when you see it and feel it.
Jimmy Iovine Nails It Why the Apple-Beats Deal Is Smart. Apple is about feel and emotional connection. That why the Apple Tribe continues shelling out big bucks to replacing their perfectly working iPhones with more expensive ones at a record pace. Check out Iovine’s commentary on feel, the state of the music industry, and why he believes Apple and Beats are primed to transform it. I can’t wait to see the impact of his influence at Apple in its future product development:
Strategy+Business’ Matt Egol and Christopher Vollmer Argue Why Apple Bet Big on Beats Music’s HCD Intangibles. Egol’s and Vollmer’s article describes how both companies focus on delivering an amazing HCD experience. The critics who say this deal is the tipping point for Apple’s inevitable innovation demise fail to recognize this fact. Here’s an excerpt their article:
The story behind the deal is much more nuanced, however. It’s not just about those tangible assets (referring to Beats’ headphone and streaming music platform), but rather a really big bet on capabilities—especially in product development, marketing, and branding. The fact that Beats has achieved a 59 percent share of the high-end headphone market in the United States and launched a high growth, buzz-worthy streaming service demonstrates the power of HCD principles at work.
Apple is well positioned to accelerate this momentum, given its own commitment to HCD.
Photo Credit: Gideon Tsang
Cook’s critics point to the Beats acquisition as a leading indicator of Apple’s inevitable demise because it “no longer innovates from within.” Nonsense.
The Cautionary Tale and Parallel Paths of Apple and Merck as Fortune Magazine’s Most Admired Companies. From 1987 – 1993, the pharmaceutical company, Merck, graced the covers of Fortune Magazine’s Most Admired Company issues as the Number 1 company in corporate reputation. In 1994, the company tumbled to Number 11. Merck’s CEO at that time, P. Roy Vagelos, declared the company would return to Number 1 (direct quote from Fortune’s Most Admired Companies February 7, 1994 article):
”WE WERE the first company to be selected No. 1 seven years in a row. My plan is that we’ll be the first company to bounce back.”
So says Dr. P. Roy Vagelos, CEO of Merck, no longer America’s most admired corporation. A year of economic turbulence, plus a far more extensive survey of companies, has produced a new crop at the top, with half of America’s ten most admired corporations newcomers to that elite group.
The long-reigning king is deposed, relegated to No. 11.
Vagelos’ Bold Proclamation Never Materialized. Merck’s 2014 Fortune Most Admired Company Ranking is Number 65 (in 2013, it was Number 58). Why’s this important? For seven (7) consecutive years, Merck was Apple.
Guess Who Fortune Magazine Ranked as The Most Admired Company in 2014? Guess who’s monopolized this title for seven (7) straight years since 2008? Apple. But, the similarities end there. How Merck chose to sustain innovation in its “Year 7” (and beyond) proves instructive.
Merck Caved to Not-Invented-Here Syndrome. John Simons, February 2008 Fortune article explores Merck’s research and development insularity post-1994:
“Merck’s scientific excellence had long inspired admiration and envy; corporate leaders voted it America’s Most Admired Company in Fortune from 1987 to 1993. By the early part of this decade, however, Merck was finding it difficult to turn its science into new, profitable medicines. In Merck’s case, there was a unique element added to what was an industrywide drought.”
“Merck was so pleased and proud to be Merck that its research culture had become haughty and insular. The company refused to consider medicines discovered outside its own labs and spurned the mergers and research alliances that were reshaping the industry.”
To Peter Kim’s credit, President of Merck Research and Development from 2003 – 2013, Merck reversed its attitude course. The Simons article continues:
“By late 2004, Kim had overseen a new system that allows scientists to mine scientific literature to identify promising chemical compounds. He also encouraged Merck scientists to use their connections to open doors for Merck’s acquisitions department
“In 1999, Merck entered into just ten collaborative licensing deals; by 2006, there were 53 joint-development transactions and small acquisitions.”
10 years passed before Merck transformed its strategic thinking towards developing and accessing innovation. In three (3) short years, Cook’s decisiveness and focus proves what happened to Merck will not happen under his “Apple Watch” as CEO.
The Tim Cook Leadership Era Means the “I” in Innovation Means “Inclusion Inspires.” That cultural pillar extends far beyond sexual orientation. He’s driving cultural and strategic shifts at Apple to sustain and grow a core Jobs-Apple value (10:37 – 12:04): “To Be the Best.”
When Your Competitor is “The Most Ambitious CEO in The Universe,” You Better Continue Reinventing and Transforming. Talent isn’t enough. Company culture drives innovation and competitive advantage.
Here are two amazing books on the significant impact of company culture:
Final Thoughts: Blocking Out the Noise and Questioning Conventional Wisdom
Will Tim Cook Continue Being Criticized for Not Being Steve Jobs? Yes. When you succeed an icon and legend, that’s a given. But, Cook won’t blink twice. He described to Rose his skill in “blocking out and filtering the noise.” (20:59 – 22:05)
Tim Cook Bets His Legacy and the Apple Ecosystem on “The Corporate Internet of Things.” That’s a massive pivot for a company whose past successes are rooted in consumer fanaticism. But, Cook has no interest in “following the herd.” Cook described to Rose why he decided to leave Compaq and join Apple in 1998 (36:13 – 37:00; paraphrased):
“Well I’m just thinking I’m going to meet him and all of a sudden he’s talking about his strategy and his vision (i.e., Jobs), and what he was doing was going 100 percent into consumer. When everybody else in the industry had decided you couldn’t make any money on consumers so they were headed to services and storage and enterprise. And I thought, I’d always thought that following the herd was not a good thing, that it was a terrible thing to do right? You’re either going to lose big, or lose, but those are the two options.”
“He was doing something totally different.” (referring to Jobs)
Not Following the Herd. Questioning Conventional Wisdom. Being the Best. Sounds a lot like:
Photo Credit: Apple Website on October 5, 2011
Thank you for taking time to stop by. Please let me know if you agree or disagree with my thoughts in the comments. If you disagree, I would love to hear from you. I’m also here to read, listen, and learn from YOUR PERSPECTIVE.
Comments are open. So let’er rip!
Did You Enjoy This Post?
If you did, please share it and subscribe to my blog. Many Thanks!
Tony Faustino is a marketing and corporate strategist. He thinks and writes about how The Internet reinvents marketing strategy in his personal blog, Social Media ReInvention. Follow his tweets @tonyfaustino or circle him on Google+.
Share-worthy links Social Media ReInvention Community Members can enjoy during Sunday brunch:
1) Bloomberg Businessweek: Tim Cook Interview: The iPhone 6, the Apple Watch, and Remaking a Company's Culture. Brad Stone shows how Tim Cook transformed a post-Steve Jobs Apple:
2) Fortune: Peter Thiel Disagrees With You. Roger Parloff (Senior Editor of Legal Affairs, Fortune Magazine) interviews Silicon Valley's Peter Thiel. Parloff's article describes the philosophies and relationships influencing Thiel's business decisions:
3) Fast Company: The $3.2 Billion Man: Can Google's Newest Star Outsmart Apple? Austin Carr's profile of Tony Fadell (Founder and CEO of Nest) details Fadell's decision to join Google, his relationship with Steve Jobs (his former mentor), and Fadell's pursuit of perfection with Nest products. The article concludes with Fadell's comments on Larry Page as his "next mentor."
4) eMarketer: Millennials Respond to Brand Transparency—for Health and Other Products. Erin Byrne (Chief Engagement Officer, Grey Healthcare Group) shares her thoughts on how pharmaceutical manufacturers and healthcare companies can earn the trust of millennials:
5) The Paley Center for Media: Jerry Seinfeld and David Letterman (Full Program). Mitch Joel published a blog post about the link between Seinfeld's ideas for Comedians in Cars Getting Coffee and creating differentiating content:
Did you enjoy this post? If yes, please share it with your friends and subscribe to my blog. Many Thanks!
Tony Faustino is a marketing and corporate strategist. He writes about how The Internet reinvents marketing strategy for organizations and individuals in his marketing strategy blog, Social Media ReInvention. Follow his tweets @tonyfaustino or circle him on Google+.
A Lot! But, Skype and Google are Damn Good Pixar Storytelling Students Based on Their Viral Reunion Videos. Skype and Google recently published these two (2) brilliant, moving, and emotional stories on their respective YouTube Channels:
The 22 Pixar Rules of Storytelling Visualized. Here the link to Pixar's 22 Rules of Story Telling Visualized written by Joe Berkowitz and published by Fast Company (hat tip to Ann Handley). You can also find Pixar's 22 Rules of Storytelling Visualized from this Slideshare presentation by Gaby 8A:
Which Pixar Storytelling Rules Do You Recognize in the Skype and #googlereunion Videos?
Let's compare notes. I see:
Rule #1: You admire a character for trying more than for their successes.
Rule #2: You gotta keep in mind what's interesting to you as an audience, not what's fun to do as a writer. They can be very different.
Rule #4: Once upon a time there was ___. Every day, ___. One day, ___. Because of that, ___. Because of that, ___. Until finally, ___.
Rule #5: Simplify. Focus. Combine characters. Hop over detours. You'll feel like you're losing valuable stuff but it sets you free.
Rule #6: What is your character good at, comforatable with? Throw the polar opposite at them. Challenge them. How do they deal?
Rule #7: Come up with your ending before you figure out your middle. Seriously. Endings are hard. Get yours working up front.
Rule #13: Give your characters opinions. Passive/malleable might seem likeable as you write, but it's poison to the audience.
Rule #14: Why must you tell THIS story. What's the belief burning within you that your story feeds off of? That's the heart of it?
Rule #15: If you were your character, in this situation, how would you feel? Honesty leads credibility to unbelieveable situations.
Rule #16: What are the stakes? Give us reason to root for the character. What if they don't succeed, stack the odds agains.
Rule #21: You gotta identify with your situation/characters can't just write 'cool'? What would make YOU act that way?
Rule #22: What's the essence of your story? Most economical telling of it? If you know that, you can build out from there.
I, Marketers, Advertisers and Brands Fail 95% of the Time on Simplicity. Rules #5 and #22 are highlighted for a reason because I believe "simple" is a MASSIVE Differentiator.
But, Simple is Hard.
Work Your Ass Off to Craft and Deliver Simple Stories and Themes. I'm reading and studying Peter Coughter's brilliant book, The Art of The Pitch. I learned about it through this Mitch Joel podcast: SPOS #296 — The Art of the Pitch with Peter Coughter.
Listen to Mitch Joel and Peter Coughter's Conversation and Invest in Art of The Pitch. If you're in the business of selling ideas (as I am), your career depends on reading/studying The Art of the Pitch. I'd selfishly prefer others in the professional services industry don't read Peter's book.
Why? I want the competitive advantages he teaches all to myself.
Peter Mentions "Simple" or "Simplicity" in The Art of the Pitch Almost 30 times. Here are key quotes reinforcing the importance of "simple":
(page 133) "Simplicity is what we seek. In the visual as well as the oral expression of our ideas."
(page 157) "Your presentation should be so simple that you can boil it down to just a few sentences. And notice that I said simple, not simplistic."
(page 32) "The audience's ability to assimilate and retain information is limited. You're only going to be able to make two or three kepy points. So make them and make them memorable. You need to this in as simple, spare and elegant a way as possible."
I Stole That Line From Ann Handley. Ann's post, Lessons From Skype, Your Story is About People (Not Technology) explains this concept better than I can:
"As my buddy Tim Washer and I espouse, the number-one rule for video is to Keep It Tight. In other words, respect the audience’s time, and don’t expect them to invest more than 60 to 90 seconds in your online video."
"But in the case of this particular video, the story of Sarah and Paige was so compelling that I sat through the whole three minutes of it."
"As you know, an Internet minute is like a dog year… so a 3-minute video is really seven times as long."
Multiple and Complex Backstories in Both Videos are "Kept Tight." Dan Lyons published this amazing post on the HubSpot Blog analyzing why The Google Reunion video is so compelling. More importantly, Dan describes the important historical context between Pakistan and India that's seamlessly weaved into the storyline.
The filmakers captured the essence of that complex, historical context simply. Understanding the context of that history lesson is one of many reasons why we root for and identify with the #googlereunion characters.
I published this January 2012 post: Google's Marketing Reinvention — Tell Us Stories That Make Us Cry to analyze Google's use of video to reinvent its corporate image. Lorraine Twohill, Google's Global Head of Marketing, described her goals to transform consumer perceptions of Google as "a place of cold engineers:"
"If we don't make you cry, we fail. It's about emotion, which is bizarre for a tech company."
Emotional Connection. If Skype and Google continue creating and publishing these compelling, simple stories, we'll watch them. These brands may even earn our long-term trust about the roles they play in our everyday lives.
"And, what's wrong with that …"
Tony Faustino is a marketing and corporate strategist. He writes about how The Internet reinvents marketing strategy for organizations and individuals in his marketing strategy blog, Social Media ReInvention. Follow his tweets @tonyfaustino or circle him on Google+.
Photo Credit by Nicholas Chan via flickr
I loved reading the January 1, 2012 New York Times article by Claire Cain Miller: Google Bases a Campaign on Emotions, Not Terms. Her article explains Google's distinctive philosophical change towards marketing and advertising. For Google to acknowledge investing more time and resources to actively promote its products and services stands in stark contrast to the image of "cold engineers" hating anything related to marketing, advertising, or public relations as described in Ken Auletta's great book, Googled.
Why Google Reinvented Its Marketing
"A Remarkable Transformation." What's driving this "remarkable transformation for Google" as noted in the article by Peter Daboll, chief executive of Ace Metrix, a firm that evaluates TV and video ads?
Ms. Cain Miller's article cites two business drivers:
Finding New Revnue Sources Beyond Search Ads. Google needs new businesses like the Chrome browser and the Google Plus social network to succeed.
Focusing, Paring Down, and Integrating Google's Offerings. This is part of Larry Page's mission as CEO to pare down Google's product offering and make these products more attractive, intuitive, and integrated with one another.
Does This Sound Like The Voice of a Cold Engineer?
Marketing Emotion. Even more revealing is that Google acknowledges both a change in marketing strategy and increased advertising investment. Here are two direct article quotes from Lorraine Twohill, Google's vice president for global marketing:
"As we got bigger, we had more competition, more products, more messages to consumers, so we needed to do a bit more to communicate what thse products are and how you can use them."
"If we don't make you cry, we fail. It's about emotion, which is bizarre for a tech company."
Sounds Like Marketing From the Heart. But, make no mistake Google still bases its decisions on rigorous, fact-based data analysis. And, the article further describes the significant data analyses and testing that went into planning its first Super Bowl commercial (e.g., dozens of tests) and a 140-tab spreadsheet used in location planning for Google Zeitgeist (the company's annual conference for it's biggest advertisers).
Don't Pitch. Tell a Story.
The Google Video Advertisements Cited in the New York Times Article. The article mentions the following successful advertising videos because Google uses storytelling versus product pitching. I've pulled them all together in this post.
It's Not About Features and Benefits. Notice how we can all relate to each of these stories. In particular, the two (2) Google Chrome videos mention nothing about Chrome as the world's fastest web browser.
These stories are moving, emotional, and entertaining. What's their emotional impact on you?
Tony Faustino is a marketing and corporate strategist. He writes about how The Internet reinvents marketing strategy for organizations and individuals in his marketing strategy blog, Social Media ReInvention. Follow his tweets @tonyfaustino or circle him on Google+.
Miguel Helft and Jessi Hempel wrote a great Fortune Magazine article, Facebook Vs. Google: The Battle for the Future of the Web, in the November 2011 issue. It's an insightful article filled with many interesting facts / statistics describing each company's operations, financials, online performance, and rivalry:
Facebook Statistics
1. 3,000 Employees. Facebook's estimated number of employees in 2011.
2. $4.3 Billion. Facebook's projected 2011 revenues.
3. 800 Million Users. Facebook has 800 million users / members.
4. 81% Revenue Increase. Facebook's display advertising revenue is expected to grow by 81% in 2011.
5. 50% Increase in 2011 Overall Revenue. Facebook's overall revenue is smaller than Google's. But, Facebook's overall 2011 revenue is expected to grow by 50%+ (compared to 2010's $2 billion overall revenue).
6. 30% of App Revenues. Facebook takes 30% of the reveunes app developers (i.e., companies like Zynga) make on its online platform.
7. $80 Billion IPO Valuation. Facebook is expected to top an $80 billion valuation at its much anticipated initial public offering (IPO).
8. 155 Million Monthly Unique Visitors. Facebook's estimated number of U.S. monthly unique visitors.
9. 400+ Average Monthly Minutes. Comscore says Facebook visitors spend an estimated 400+ average minutes on Facebook.com.
10. 27 Years Old. The age of Mark Zuckerberg, Facebook's CEO.
11. 60 Days. Mark Zuckerberg called on Facebook engineers to work nights and weekends for 60 days when word leaked in summer 2010 Google was developing a "Facebook Killer."
12. Four (4) Facebook Executives. Four (4) of Facebook's to 11 executives are ex-Google employees.
Google Statistics
13. 31,353 Employees. Google's estimated number of employees in 2011.
14. 2,600 Employees. In third quarter 2011, Google added nearly 2,600 employees. That's just 400 employees short of Facebook's entire workforce.
15. $38 Billion. Google's projected 2011 revenues.
16. 41% of $31 Billion (or $12.7 Billion). Google currently captures 41% of the $31 billion U.S. online advertising market.
17. 34% Revenue increase. Google's display advertising revenue is expected to grow by 34% in 2011.
18. 30% Increase in 2011 Overall Revenue. Google's 2011 overall revenue growth is predicted as 30% on $38 billion in forecasted overall revenue.
19. 180 Million Monthly Unique Visitors. Google's estimated number of U.S. monthly unique visitors.
20. 250+ Average Monthly Minutes. Comscore says Google visitors spend an estimated 250+ average minutes on Google's sites (e.g., Google.com, YouTube, Gmail, Google Maps, and other properties).
21. 40 Million Users. As of the publication of this article, 40 million people signed up for Google+.
22. 4 Months. Google+ acquired 40 million users during its current 4-month launch period.
23. 100 Features. Google has introduced 100+ new features since Google+'s June 2011 launch.
24. 598,000 Google+ Followers. As of this article's publication, Mark Zuckerberg has 598,000 followers on Google+.
25. Four (4) Previous Attempts. Google made four (4) previous attempts to launch and establish a successful social network before succeeding with Google+ in June 2011.
26. 5% of App Revenues. Google takes 5% of the revenues app developers make on its online platform.
27. 38 Years Old. The age of Larry Page, Google's CEO.
28. $10 Million in Equity and Cash. Google offered its top engineers and executives $10 million in equity and cash to remain at Google.
29. 20 Years of Government Monitoring. Google accepted 20 years of government monitoring after Google Buzz exposed Gmail users' contacts to others. This public misstep triggered a Federal Trade Commission investigation forcing Google to revamp its privacy policies and accept the government monitoring.