Henderson Kite.

Archive for March, 2011

03.23.2011

Good Advice

The thing about really good advice is that you never really know how good it was until a while after. If you knew it was good advice at the time you probably knew the answer but were fudging the decision. It's when you are in the moment, on a track hurtling in some direction when you just think you need someone to reinforce your position.

My old boss gave me a couple of great ones when I left the comfort of the payroll 6 years ago.

1. To be really great you have to make tough decisions when things are going really well

2. Make sure you pay yourself properly

Both fairly intergalactic in their own right. The first we could talk about for along time and something I really believe in, but its the second that I often come back to. For any new business its key that you get to a position where you start to pay everyone their market value. If you don't its fairly easy to run a business getting a £100k plus people to work for £15k, it just doesn't last very long. I fell into the trap with a business a while back - thinking I was "reinvesting", but the reality was that I was becoming more and more detached from the value of the business and the products we offered. The "reinvestment" plan made it all a little make believe vs feeling every penny you spend which is what a small business should be feeling.

Where I see this happening more and more is not so much in small businesses, but big organisations who are looking to change, or innovate with their products.

The advertising industry historically grew by around 3%. Essentially it didn't. This made most agencies  try and differentiate from the competition - you had to, it was about stealing. Then along came digital. the growth charts were phenomenal, it was the saviour. New products and services were launched things grew like mad, but the independents (media or creative) grew faster and innovated quicker. Why? They paid themselves properly. They charged clients properly, they paid their people properly, they paid their dedicated management properly and they had a crystal cler idea of their product and how to manage it and importantly grow it.

The "traditional" agencies, were trying to protect legacy revenue - TV media or production, the army of planners who sat in mild panic hoping they wouldn't get asked a digital question by the client. Money was taken from digital to invariably prop up the old model. Why? because clients didn't feel they needed to pay for this but agencies felt as though they should - so they took the money, thinking the strategic high ground would be safer than the commoditised trading or production. Clients want the job done, not save money on the money they give you. Its lack of belief in we do that makes it start to be about the money.

It all comes back to being paid properly. Having the tough conversation, being clear on what you are worth which makes you focus where you allocate you resource and why.

03.22.2011

Is NFC the final link in the chain

NFC of Near Field Communication seems to be the word of the moment. In essence its the technology that allows 2 devices to swap information - payment, data over a small physical distance. From ticketing with an Oyster card through to quick payment with your phone its pretty cool and simple technology. The phone play is where it starts to heat up. At present the new Google Nexus 2 phone has got the technology, but Apple are still holding back. A mistake I thought, but was corrected by someone recently with "Apple don't make mistakes, Google do".

Since the web really launched, it has been direct response clients that have really ruled the roost, they made Google famous, responsible for underwriting most of the technology that runs the web and drove the whole ability to pay and transact online. The FMCG market and small ticket retailers have been very much left behind and a little confused. Its tough to sell beer online.

Online DR has been the darling of the web for a long time. It wasn't just a marketing tool for many, it was a full end to end business from initial touch to sale and service at the other end. Many of these businesses chuckled quite happily at retailers with shops, seeing the ball and chain of legacy.

But NFC seems to be the final link in the chain. We have seen the claiming back of technology by the people through the rise of social and now as smart phones continue to blur the edges of small computers and big phones, the good old fashioned outlet seems to be coming back into fashion. Not only location based services like Gowalla or Foursquare, but the ability now to really start to link into purchase and "on the move" behaviour.

For a long time brands haven't really leveraged their non cash assets or realised them as a marketing tool. On pack, instore, at event all suddenly seem very exciting and very relevant, all we needed was to wire them up, which is where NFC will come into its own. Bricks and mortar coming back into fashion and if anything being the competitive edge (perhaps this is why the second word of the moment is the "Pop Up Shop").

I suspect Google will make it work and Apple will inspire us with it. Exciting times ahead.

03.21.2011

Social media milestones

Great visual by David Armano at Edelman Digital