Category Archives: marketing

They Dropped The Other Shoe

[Disclaimer: I’m not necessarily an Apple fanboy but I have been an enthusiastic Mac user since 1987 and have owned several Apple products, from an iPod to a QuickTake camera. I also think that technology is having a big impact on arts, media, and entertainment.]

Just watched Apple’s "Showtime" Special Event. Didn’t really read or even listen to anything much about it yet. During that event, Apple CEO Steve Jobs introduced new versions of all the iPod models, a new version of iTunes, and the addition of movies to the iTunes store. In addition, Jobs gave a sneak peak of an upcoming box to link iTunes with televisions and stereo systems.

People are likely to have been disappointed by the announcements. They’re probably saying that Steve Jobs’s famous "Reality Distortion Field" isn’t working, or that he lost his "mojo." They might even wonder about his health. Again…

Not that the new products are really boring, but there tend to be high expectations surrounding Apple announcements. This one is no different as people expected wireless capabilities on iPods and recording capabilities on the new "media centre" box, which was in fact part of the expected new products from Apple.

But this event is significant in another way. Through it, Apple explained their strategy, revealed a number of years ago as the Digital Hub. What some have called "convergence," quite a few years ago. Nothing really new. It’s just coming into full focus.

Though we may never know how much of it unfolded as planned, Apple’s media/tech strategy may appear rather prescient in retrospect. IIRC, it started in 1996, during Gil Amelio’s tenure. Or, more probably, in 1997 during the switch between Amelio and Jobs. Even by, say, 1999, that strategy was still considered a bold move. That was before the first iPod which, itself, was before iTunes, the iTunes Music Store, and most other current media-centric technologies at Apple. It was also at a time when user-generated content was relatively unimportant. In other ways, that was during the "Web 1.0" Internet bubble, before the "Web 2.0" craze for blogs, podcasts, and "social networking."

Apple isn’t the only corporation involved in the changes in the convergence between technology and the world of "content" (arts, media, entertainment). But it has played a key role. Whatever his success as a CEO, Steve Jobs has influenced the direction of change and, to an extent, shape a part of digital life to his own liking. While he’s clearly not clueless, his vision of the link between "content" and technology is quite specific. It does integrate user-generated content of "varying degrees of professionalism" (which he joked about during his presentation) but it gives precedence to the "content industry" (involving such powerful groups and lobbies as WIPO, NAB, MPAA, RIAA, etc.). Jobs’s position at Pixar makes him a part of that industry. Which is quite different from what arts and expressive culture can be.

Jobs invites musicians on stage with him (John Mayer, Wynton Marsalis, John Legend). He respects musicians and he might even appreciate their work. But his view of their work is that they produce content to consumed. For Jobs, music tracks, audiobooks, television episodes, movies, and music videos are all "contents" to be enjoyed by consumers. Now, the consumer can enjoy content "anywhere" as Apple is "in your den, in your living-room, in your car, and in your pocket." But what about public spaces? Concert halls, churches, coffee shops, parks, public libraries, classrooms, etc.? Oh! Apple can be there too! Yeah, of course. But those are not part of the primary vision. In Apple’s view, consumers all have their own iTunes accounts, media libraries, preferences, and content-consuming habits. A nuclear family may count as a unit to a certain extent (as Bob Iger pointed out in his "cameo appearance" during Jobs’s event). But the default mode is private consumption.

And there’s nothing wrong with that. Even the coolest things online are often based on the same model. It’s just that it’s not the only way to do things. Music, for instance, can be performed in public. In fact, it can be a collaborative process. The performers themselves need not be professionals. There’s no need for an audience, even. And there’s no need to see it as "intellectual property." Music is not a product. It’s a process by which human beings organize sound.

Ah, well…

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Alcohol Marketing, Craft Beer, and Responsible Drinking

[UPDATE: Press release. Much clearer than the Hour article…]

This could potentially be big for craft beer. A code of ethics for alcohol adverts.

Hour.ca – News – Alcohol marketing becomes ethical

A bit like video game manufacturer who propose rating systems for their own games, members of the alcoholic beverage industry in Quebec are trying to regulate their own advertising practises. According to the article:

Under the new code, the following has been forbidden:

  • Using alcohol content as a sales argument
  • Associating alcohol with violent or asocial behaviour, or with illicit drugs
  • Sexism or the association of the product with sexual performance, sexual attraction or popularity
  • Implications that the product improves physical or intellectual capacities, or has health benefits
  • Encouraging drinking games or excessive drinking
  • Making the product particularly attractive to people under 18
  • Showing images of people who look younger than 25
  • Showing disrespect for those who choose not to drink

By proposing such a code of ethics, the industry may possibly bypass government regulation. It also shows that its members are willing to go some distance in changing their practises.

Educ’alcool‘s message, associating responsible (moderate) drinking with taste, is well-established in Quebec culture and this code goes in the same line. By contrast, in the U.S., advocacy for responsible drinking is criticized by academics and health specialists. IMHO, this criticism has the effect of encouraging younger people to binge drink, with sad consequences. Educ’alcool and Quebec’s alcoholic beverage industry are probably trying to avoid such a situation. Although it might sound counter-intuitive, binge drinking is not beneficial to their bottom line. After all, nobody wants to get sued for the death of any of consumers.

The main apparent target of this code is beer advertising, especially on television. While Quebec has its share of beer ads with scantily clad women, even ads for some of InBev’s Labatt products are somewhat more subtle. In fact, the French-speaking versions of commercials for Labatt bleue have, over the years, represented an alternative to the typical "beer gets you laid" message. As typical of Quebec culture, these ads have used humour to carry their message, often with puns and other word play. For instance, one of the most recent ads uses a zeugma and the names of several parts of Quebec (strengthening the association between the beer and Quebec cultural identity). It also describes the beer in its association with food.

Which brings me to the interesting point about craft beer. While beer advertisement is typically full of what this new code of ethics seeks to prohibit, craft beer positions itself in exactly the same line as Educ’alcool and this code of ethics: taste and responsible drinking. The only television ads I’ve seen for craft beer were made by Boston Beer company for their Samuel Adams products. These ads usually emphasize the brewing craft itself and have been discussed by many members of the craft beer crowd. An important point is that they’re quite effective at delivering the message about taste, quality, sophistication, and responsibility. (Actually, I wore a Samuel Adams t-shirt yesterday, after reading about the new code of ethics. Didn’t even notice the possible connection!)

Any craft beer person will argue that craft beer always wins on taste. So if the new marketing message needs to focus on taste, craft beer wins.

It’s quite striking that the code of ethics mentions people looking older than 25. IMHO, it’s overstating the case a bit. IMHO, nothing is to be gained by avoiding the portrayal of members of the 18-25yo age bracket in advertising for responsible drinking. This demographic is not only very important for the alcohol industry but it’s one which should be targeted by the responsible drinking movement. Educ’alcool does target people who are even younger than that, so that they "do the right thing" once they’re old enough to drink, but there’s no reason to let people down once they start drinking. Eighteen-year-olds are not only learning the value of responsible drinking, they’re integrating responsible drinking in their social lives. And they’re learning how to taste alcoholic beverages.

Apart from age, characteristics of craft beer people are usually the same as those of the target market for beer in general. But their emphasis is really: taste, distinctiveness, sophistication, and responsibility. Again, perfect for the new type of ads.

Speaking of beer marketing, the issue of Montreal’s Hour indie weekly also has a piece on the importance of beer sponsorships for the success of events in the city. Coincidence?

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Sizing Up the Geek Crowd

Rocketboom interview with Steve Rubel

Like Delagrave and Bergeron, Rubel got it. And it goes much beyond marketing, brands, or even economy. Geeks are at the forefront of something. They have an impact. Not a direct impact on sales of a specific product. But geeks are trailblazers and, sometimes, trendsetters in the social changes which are already happening. They’re not causing the change. But they’re riding the waves of social change. Some waves will die quickly, others will carry many people to an interesting place. As in STF, creating windmills, not shelters.

This is also connected to a recent discussion I had, at a nice brewpub, with a member of Siebel Institute’s faculty. We were talking about beer geeks and their impact on craft beer sales. Not only are beer geeks like computer geeks but it turns out that there might be a clear historical relation between the Pacific Coast computer industry, the rise of latte drinking, and the craft beer revolution. As beer and coffee are among my passions, I find this link fascinating.

At any rate, this faculty member’s point was that large breweries shouldn’t care much about beer geeks as they (we) don’t drive sales of specific products. One of the main arguments here is that geeks aren’t faithful to a brand. Geeks want diversity. Beer geeks want as many different beers as possible.

It’s pretty much the same thing throughout the geek crowd. Talk about empowered “consumers”