Experience Manifesto

Where in the World is David, Part 1

Just back from Machu Picchu & Lima and starting to get caught up on the 1,000 or so e-mails in my inbox! But, I'm getting ready to get on the road again! On Tuesday, I'll be speaking at Globalshop, where I'll give a presentation on Technology and the Socialization of Real Estate. If you're going to be at the show, make sure you stop by to say hi!

Link: Conference List.

Where in the World is David, Part 2

Not one to want to rest too much, I'm traveling again at the end of the week to be part of the World Summit on Innovation & Entrepreneurship, being held in Muscat, Oman. I'm very excited to be a part of this program and it's my first trip to the Middle East. When you find yourself on a program that includes:

Dr. Deepak Chopra

Michael D. White, Chairman & CEO International Businesses, PepsiCo

Kenneth P. Morse, Managing Director, MIT Entrepreneurship Center

Dr. Johnathan Lord, SVP, Chief Innovation Officer, Humana Inc.

Mrs. Vasumathi Briquez, Vice President Innovation and Pervasive Computing, Oracle EMEA

Ms. Lesa Mitchell, Vice President for Advancing Innovation, Ewing Marion Kaufman Foundation

You get pretty humbled by the brainpower that they've put together! I am moderating the session on the future of branding and participating in 2 other panels as well. Hopefully, I will be able to blog from the event and chronicle what I hope will be a very engaging & critical conversation.

The World Summit on Innovation & Entrepreneurship is a unique initiative like no other…

...it connects you with 800 of the World’s foremost movers & shakers that are changing the global economy.

...they will all converge for 3 days to help create a new future for the next generation of entrepreneurs and innovators to help solve the World’s most difficult challenges.

Link: World Summit on Innovation & Entrepreneurship :: Home.

Comment Spam

I am sorry to say that we've been deluged with comment spam, so I needed to turn on comment authentication. It’s really getting difficult to have to delete all of the comment spam we receive! I hope that this does not inconvenience any of our readers!

BTW, if you’ve noticed that it’s been quiet, it’s because I’m in Peru and have had very limited online access. Besides, if the choice is between exploring Machu Piccu or blogging, well, I guess I haven’t been blogging, have I? I'll get pictures up when I return!

The Problem with the Advertising Model

I'm not sure where I'm going with this yet, as it's still a work in progress, but I thought I would start it and see where the conversation goes! It's something we've been noodling for a few weeks now, as we look at everything that's happening in the advertising biz, especially with the recent announcements from the holding companies about their new companies (see here, here and here).

The advertising model is simple -- take content and place it on things. You used to place the content in print, radio and TV and it was a pretty simple gig. Now, I don't mean to imply there was anything wrong with that model at the time and that there wasn't some excellent work done.

Here are some excerpts from an editorial by Jonah Bloom in the current Ad Age:

SOME THOUGHTS ON OBSOLETE BUSINESS MODELS...And How Big Agencies Have Done Remarkably Little to Reinvent themselves

Despite an overwhelming mass of evidence that their business models are fatally flawed and their service offerings out of step with many marketers’ demands, the biggest agencies have done remarkably little to substantially reinvent themselves. It doesn’t seem to matter how many of their clients shift projects or even full-scale brand assignments to smaller, nimbler, flatter structured, less-30-second centric agencies, the biggest agencies seem reluctant to really blow up their model.

Their product has barely changed (you could count the genuinely big ideas from the last 12 months on one hand), and I’ve heard at least three separate first-hand reports of people within those organizations who’ve had good non-TV ideas for a client being told that they’d have to be turned into TV commercials before they could be pitched.

Most big enterprises that survive a challenge from an upstart do so as shadows of their former selves. Still alive. Still big. But no longer the pathfinders.”

Link: SOME THOUGHTS ON OBSOLETE BUSINESS MODELS.

We hear similar stories from clients every day. They're asking for new ideas and their agencies keep coming back with advertising placement ideas. Now, to be fair, there are still lots of clients out there who simply want advertising placement as well, no matter how much the world around them has changed. We know how to take content and place it on things and the fact that there are new things doesn't change the model. Just look at the current boom in branded entertainment, in-cinema advertising, WOM or advergaming and the hundreds of companies that have sprung up in the last few years around these tactics. Take my product or product message, gussy it up and off we go.

But, there's a big difference between the advertising model and the experience model in terms of making an authentic connection with your audience. I mean, it's relatively simple to get people to talk about you, it's much harder to get them to buy you.

One area that we've written about in the past and, in many cases, is a great example of this is the current boom in digital signage systems at retail. For us, here's where it becomes very clear when it's an advertising model or experience model. If you're currently working on an in-something digital network, ask yourself this question. Where does "create a better experience" fall on your list of reasons to install a digital network? My guess is that the top spots are occupied by something along the lines of "increase revenue" or "create opportunities to promote partners" and somewhere further down the line is create better retail experience. And even when it's on the list, my guess is that few people have actually defined how it will create a better experience for the consumer.

And the advertising model is the reason that the industry is still worried about GRP and reach & frequency. They spend way too much of their time looking for a new networks to exploit, instead of looking for tools to truly engage their audience. Does just capturing eyeballs any more count? It's the key reason that we're exploring experience measurement tools that we believe will be much more valuable in the future.

We’re going to write a great deal more about this topic and we’re interested in your thoughts about this as well. There’s a lot at stake if we’re chasing the wrong model!

MD Seminarios

For those of you who might be reading our blog in South America, I will be presenting a full day experience on Experiential Marketing in Lima, Peru on the 24th of March. It's my first time is South America and I'm really looking forward to the program! Click on the link below for additional information!

Link: MD Seminarios.

Experiential Marketing Summit 2006

Just wanted to pass along a little reminder that early bird discounts are available until Friday, March 10th, for the Experiential Marketing Summit. The Summit is May 8 - 10 in Chicago.

This year's Summit will bring together the biggest names in event marketing to share best practices, identify trends, and show how to create experiences that turn customers into advocates.   With 70+ strategic sessions, clinics, workshops, case study discussions and general sessions—our biggest Summit ever will arm you with the critical information you'll need for the road ahead. No other marketing conference on the planet features this many brand-side speakers or an agenda more dedicated to experiential marketing.

Link: EMS - Homepage.

JCPenney Pop-up, Virtual Store Successfully Opens To A Star-studded Crowd

As a follow-up to our recent piece about this store, it opened Friday to much fanfare, although, sorry to say, without us in attendance! While we're sad about that, we think it's a cool idea and will be heading over, camera in hand, to get some pictures that we can post here.

At a jam-packed and star-studded opening that included fashion designers Nicole Miller, Chris Madden and Nick Graham, the JCPenney pop-up, virtual store opened last week at New York's One Times Square. The three-floor, 15,000-sq.-ft. pop-up (open for three weeks only) stocks no merchandise to be immediately taken home, but rather houses interactive touchscreen kiosks that link shoppers to www.jcp.com, where more than 300,000 items are available for purchase. The North-facing exterior of the installation features a huge JCPenney's billboard, which showcases the theme: "It's all inside." Inside the store, samples of merchandise--which was upscale and fashionable--are showcased, such as homegoods samples that are shown on the third floor. Steve Lossing, divisional vice president and merchandise manager of men's apparel, discussed with DDI the evolution of JCPenney at the event. "This has been coming in the past 3 years of development of the product line," Lossing said. "Four years ago, we never would have tried this. We didn't have the merchandise. We didn't have the marketing background." The store is open daily from 10 a.m. to 9 p.m. to the public. The opening gala benefited Broadway Cares/Equity Fights AIDS.

Link: JCPenney Pop-up, Virtual Store Successfully Opens To A Star-studded Crowd.

Smirnoff Searches for a Cocktail Consultant

Man, this would be a cool gig! You know, I've been thinking it's time for a sabbatical...

Smirnoff vodka is searching for an "enthusiastic drinks guru" to span the country to research cocktail culture and submit reports.

The new employee, who will hold the title of Smirnoff Cocktail Consultant, will get a $50,000 salary and a $50,000 expense budget to conduct the work, which includes providing twice yearly Smirnoff Cocktail Trend Reports. The report will identify the "latest and greatest" in the world of drinks for a one-year term, Smirnoff said.

The prospective candidate will have prior knowledge of mixology and the culinary arts and a general passion for entertaining and all things epicurean, Smirnoff said. Responsibilities include traveling to major cities across the country to identify new trends in cocktail mixing and drinking.

Link: Smirnoff Searches for a Cocktail Consultant.

The Temporary Physical Virtual Store

We're working on getting some press credentials for the opening (in case anyone from Penney's is reading!), but this could be a way cool addition to the retail experience. One of the things that's really pretty edgy is that it is designed to showcase its private label and exclusive brands, which also makes them a pretty hot target for all of their retail partners. We love the location and think it can bring a totally different vibe to the J.C. Penney brand. Interestingly, we spoke to a journalist doing a story on the changing face of grocery stores and one of their questions was about how retail seemed to be moving in two directions — price-based and experience-based. Their hypothesis was that stores in the middle, featuring neither the lowest prices or the best experiences, faced a very uncertain future. We not only agreed, we thought it was a challenge for the entire retail industry, not just grocery stores.

J.C. Penney could potentially fall into the middle category and this is an excellent way to totally change the perception of who they are. I mean, after al, they are a founding father of the retail industry and it many ways, Diva thinks they’ve lost the voice of their story. Experiences like this are a great way to get their voice back and introduce themselves to a whole new audience. But, they do face the very real challenge of making sure that their entire experience delivers on their story, not just this one location. Here's what BusinessWeek had to say:

We've been hearing about the virtual store for many years now, with the hype growing to a crescendo during the first coming of the internet, and peaking just before the tech wreck. Since then, e-commerce has been growing steadily towards inevitable dominance at some point in the distant future. A spectacular initiative from American department store retailing institution J. C. Penney yesterday might cause everybody to rethink how e-commerce and the future of retailing might unfold though. The company will construct a 15, 000-square-foot physical manifestation of the virtual store at One Times Square on the corner of 42nd Street and Broadway, New York. In our humble opinion, the opening of this temporary virtual store from March 3-26, in which shoppers can purchase the company's full range of merchandise at interactive kiosks, marks a significant development in the history of retail. We believe that traveling virtual superstores could be a part of retailing's future.

Opening March 3, the JCPenney Experience store will be a showcase for its private and exclusive brands, modeled after JCPenney's signature trademark, the 'Big Red Box.' Inside, visitors from around the world will find an exclusive assortment from the spring collections of the company's private and exclusive brands. Shoppers will be able to buy everything in the store at interactive kiosks, which will feature all of the 250,000 items available at the company's web site.

Interestingly, last year Sheldon Gordon announced a new retail concept. For this of you who might not know Mr. Gordon, he was the man behind Cesear's Forum Shops, some of the best retail space in the biz! Here's a brief overview:

Sometime near the end of 2006, the complex, called Epicenter, is scheduled to open in Columbus at the Polaris Fashion Place. The nucleus of Epicenter will consist of two parts - the Buypod, a hand-held electronic device, and electronic kiosks located throughout the mall.

Under the concept, customers will enter the mall and register their credit card information, which will then be put into their Buypods. As customers browse merchandise, they can use their Buypod - which, as the name suggests, looks something like an Apple iPod - to scan the labels of items they want to buy.

Although a small number of items will available to take home, most orders will be sent directly to the warehouse, where they will be filled and shipped. The electronic kiosks will print receipts and can be used to cancel orders, if needed.

According to Anthony Lee, Epicenter's chief executive, Internet and catalogue retailers can use Epicenter to establish a place where their customers can feel, and in some cases try on, merchandise. The Epicenter design also offers the low overhead and reduced need for sales staff that online and catalogue retailers are accustomed to. Mr. Lee would not reveal the names of the "small" number of retailers who had signed up for Epicenter, but he said that "interest runs very high."

Lots of folks are used to buying online now. They don't need to lug the package out to the parking lot, into their car and then home to feel the satisfaction of shopping. But many times, they do like to see and touch the merchandise. This is the perfect combination of retail experiences. And we think that this is only the start.

If someone from the JCPenney PR team does send an invite our way, we'll give you live blogging updates from inside the store!

Read more about the JCPenney Experience store: The Temporary Physical Virtual Store.