Wolfram|Alpha - The Search Engine of Tomorrow?

It’s been 12 or so years since Google was introduced as the result of a Stanford University research project. In that time the world has gotten used to search results that are based on things like the relationships between multiple Web sites or the number of times a search term appears on a page - an approach that doesn’t always provide the most relevant or useful information.

Now, a company called Wolfram Research gives search users a reason to raise their expectations. Wolfram is working on a new type of search tool that they are calling a computation engine. The difference is that their tool will give users specific answers to natural language questions they submit by collecting, curating and organizing information from a variety of sources rather than directing them to other sites.

An alpha version of the tool was released last month. The illustration of a sample search results page below shows how much different computational based results will be from traditional search results. Whether this will be the next breakthrough in search technology, or just hype, remains to be seen.

http://www.wolframalpha.com/

iPhone Continues to Help Apple/AT&T Profits – While Android Makes Inroads

On a day when both Apple and AT&T reported quarterly profits that exceeded expectations on the coattails of the iPhone, a recent AdMob Mobile Metrics Report shows that Google’s Android is slowly starting to chip away at iPhone’s dominant position.

Android, Google’s open source mobile operating system (OS), deputed this past November with the launch of the HTC Dream smartphone. According to AdMob’s March 2009 report, while growth of the Android over its first five months was impressive, it fell short of iPhone’s growth during its first five post launch months.

Other stats, however, show Android has had a considerable impact on the smartphone market since launch:

• Captured 6% share of the smartphone OS market
• Currently tied with Palm as the fourth largest OS
• Reached the number 10 device in the US in terms of overall mobile ad server requests

See full report. http://metrics.admob.com/2009/04/march-2009-metrics-report/

Do Apple and AT&T have reason to be concerned? I think so.

For starters, last month total requests to AdMob’s US ad servers by Android devices were more than 10% of iPhone device requests. That’s not insignificant.

And the much improved successor to the Dream, the HTC Magic, is due to arrive in stores in several weeks. The new device will include, among other bells and whistles, a 3.2 inch QVGA touch-screen display, a 3.2 mega pixel camera (with Auto Focus), high-speed connectivity and on-board GPS functionality. It looks really cool too.

NYT's Dowd Does Battle with Twitter

The irreverent and sarcastic New York Time's op-ed columnist Maureen Dowd wrote a hilarious piece in today's Times about an interview she had with the inventors of Twitter to find out, to paraphrase Dowd, if they are as annoying as their invention.

Here are a few of the more comical exchanges between Dowd and Biz Stone, one of the co-founders of Twitter:

DOWD: Did you know you were designing a toy for bored celebrities and high-school girls?
BIZ: We definitely didn’t design it for that. If they want to use it for that, it’s great.

-----------------

DOWD: If you were out with a girl and she started twittering about it in the middle, would that be a deal-breaker or a turn-on?

BIZ (dryly): In the middle of what?

-------------------

DOWD: I would rather be tied up to stakes in the Kalahari Desert, have honey poured over me and red ants eat out my eyes than open a Twitter account. Is there anything you can say to change my mind?

BIZ: Well, when you do find yourself in that position, you’re gonna want Twitter. You might want to type out the message “Help.”

Seems like Dowd has some issues to resolve with new technology - here's a link to the full column:

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Digital Books and the Next Era of Innovation

Popular science author Steven Johnson wrote an interesting piece in yesterday’s Wall Street Journal about digital books, how they will change what and how much people will read in the future and the impact those changes will have on innovation.

http://online.wsj.com/article/SB123980920727621353.html

As Johnson points out, we currently have unlimited access to terabytes of data and information courtesy of Google and other search engines. However, the nearly infinite repository of knowledge stored in the millions of books printed since the invention of the printing press are, for the most, outside the searchable Internet.

Game Changers - E-Books and Google’s Book Search Service
That’s about to change. The recent success of Amazon’s Kindle e-book reader, and the progress Google is making with their Book Search Service, are providing the tools and content needed to begin the next phase of the great migration of the written word to the digital format. This next phase, however, will be substantially more profound than earlier phases both in terms of the volume and, in many ways, the quality of the content being digitized.

Based on these developments, Johnson makes some excellent points (all of which I agree with) about the future of book reading:

• Book content (like all searchable content) will be indexed, ranked and commented on by readers
• Authors will likely write chapters (and even passages) in a way that are optimized for search engines
• Books will be un-bundled and many will be sold by the chapter (much the same way people consume songs rather than full albums as a result of iTunes and file sharing)
• Book reading will become social – book content will be tagged and annotated. As a result, people will share comments and insights on book passages (a chapter, a page or even a quote) much like they comment and dialogue on a blog post or newspaper article

Digital Books and the Innovation Revolution
But, to me, by far the most powerful outcome of these developments will be the influence over how people will learn and innovate in the future.

If you believe, like I do, that our economy and culture are becoming more idea and innovation driven, then a world where such an enormous amount of knowledge (book based and otherwise) is indexed, annotated and searchable is truly an exciting development.

So much was argued in Daniel Pink’s 2005 book “A Whole New Mind.” His premise: we are moving away from the information age into a conceptual age where ideas and innovation will be among the most valued currencies. This is a result of the abundance and commoditization of many products and services, the ability to outsource work to the lowest common denominator and the growth of automation. In this new conceptual age, according to Pink, creative right brain thinkers, as opposed to linear left brain thinkers, will be the heroes.

I have no doubt that creativity and innovation are going to be more highly valued as the U.S. and global economies evolve and become more competitive. The wide adoption of e-book readers and initiatives like Google’s Book Search Service, I think, will be very important enablers of that trend. Think of them as force multipliers.

Pizza Hut "Twintern" Program - Who Says There are No Good Jobs Out There?

Who says there aren’t good jobs out there for college students? For instance, Pizza Hut is looking for a college student for their paid summer “twintership” program. According to the job description on careerbuilder.com, the “twinintern” will be responsible for:

• Spreading the Pizza Hut message by collecting and sharing insights and experiences while working for Pizza Hut through social and interactive media: Blogs, Twitter, Facebook, YouTube, New and emerging media
• Monitoring social media for pop culture news, off-the-wall stories or anything else quirky and fun that he or she thinks would be of interest to loyal Pizza Hut fans
• Monitoring social media for any negative Pizza Hut brand mentions
• Chronicling their experiences through video and posting to selected media

Key requirement – study closely last week’s Domino Pizza gross-out You Tube video calamity and get ready to play defense.

This Time it’s Volvo’s Turn to Experiment with Social Media

Major consumer brands are starting to explore ways to integrate social media into their advertising campaigns - last month it was Skittles, and this month it was Volvo.

In Volvo’s case they promoted their new XC60 crossover SUV with a one day only YouTube page takeover to coordinate with the New York Auto Show. To spice things up, the takeover included a live feed of XC60 Twitter updates from the auto show.

This is the first time YouTube ran such a prominent ad on its homepage. This is no doubt part of Google’s (YouTube’s owner) effort to generate more revenue from YouTube which, it has been widely reported, has been a serious drain on Google’s profitability.

While it’s too early to tell what kind of impact Volvo’s gambit will have on XC60 sales, to me this is a great way to raise awareness and create a dialogue with consumers.

It’s almost a certainty that more marketers will follow suit in the coming months with their own social media experiments. As with anything else, there will be fits and starts but it’s only a matter of time before social technologies become commercialized as a platform for highly targeted online advertising.

Universal Music / YouTube Deal Could Help Save the Music Industry

Wired magazine reported this week that Google’s YouTube and the Universal Music Group confirmed the launch of their music video collaboration, Vevo.com, for later this year. Think of it as a Hulu for music videos (which, it appears, was the inspiration for Vevo). Revenues will be shared between YouTube and Universal.

The service will be advertising based and will serve up Universal’s music video assets (including artist interviews and concert footage) that will be of higher quality than the standard YouTube fare that is currently available. In addition, it’s likely that YouTube, and eventually AOL and Yahoo, will also have access to Vevo’s video library. Ultimately, the goal is to add other labels to the service as well.

If it works, Vevo would be a significant win for both parties. For YouTube it would mean the end of Universal’s licensing violation claims. And, as a premium YouTube property, Vevo would likely generate premium fees from advertisers. For Universal it would be a solution to their repeated efforts to monetize their music video business.

Music videos have been licensed to YouTube for several years now. But they have not generated the level of advertising revenues that either YouTube or the music companies had hoped for. This is most likely a result of the motley nature of music videos available on YouTube.

Ultimately, Universal (and the whole music industry for that matter) has nothing to lose by this venture. After years of declining record sales and profits caused by the rise of file-sharing, to say the music business is in dire need of new revenue streams is putting it mildly.

Will the Internet Surpass TV Next Year?

So predicts a research report just published by Microsoft. The study projects that time spent on the Internet by consumers will surpass traditional TV by June 2010. The report was based on research conducted in Europe but definitely has application to the US market.

Specifically, the study projects that by next summer Europeans on average will spend 14.2 hours per week on the Internet versus 11.5 hours on TV.

Other predictions include:

• Over the next five years Internet use on PCs will decline from 95% to 50% as other Web enabled devices such as Smartphones and IPTVs become more widely adopted


• Video capable mobile devices will grow from 31% today to 76% by 2013


• "Connected entertainment” and time shifting will become the norm as three-screen (PC, mobile device and IPTV) integration improves allowing people to watch what they want, whenever and wherever they choose


• Social connectivity will become commercialized and will enable more personalized and relevant online advertising and marketing


• Mobile devices will become the primary point of access to the Internet

Some of these predictions are similar to those reported in a major research initiative by the Pew Internet Project that I posted about in February:

http://marketingmemes.blogspot.com/2009/02/what-will-internet-look-like-in-2020.html

Of course, a good dose of skepticism is warranted with any report that predicts the future, especially one sponsored by a private enterprise like Microsoft that has a lot to gain if these predictions come true.

That said, I see little reason to doubt that most, if not all, of these projections won’t come to pass.

Are Fees for Online News Content in the Offing?

A couple of weeks back I posted about the challenges facing the newspaper industry as they deal with declining ad revenues and the migration of readers to free online sources.

http://marketingmemes.blogspot.com/2009/03/time-is-running-out-for-newspapers.html

Now, the New York Times is reporting that the industry is reconsidering its free content for all business model.

http://www.nytimes.com/2009/04/08/business/media/08pay.html?_r=1&ref=business

At an industry conference last week, newspaper execs explored various options to monetize their content on the Web. Some of the payment models under consideration include:

• Subscription model (e.g., WSJ.com)
  
• Micro-payments (e.g., iTunes)
  
• Content licensing to third-party sites

Of course, in order for this to work, newspapers will to address a major, maybe even insurmountable, challenge: how to get readers to start paying for something that has been free for so long?

Yahoo! TV Widgets – is Web/TV Integration Finally Becoming a Reality?

Several months ago Yahoo announced that it was developing widgets that will allow viewers to integrate Web services into their TV experience. Now it looks like those widgets will finally come to market.

Samsung is now selling the first TV that I am aware of that supports Yahoo’s widgets. The Samsung 7000 will come pre-loaded with four widgets: Flickr, Yahoo News, Weather and Finance and plans to offer up to 30 more widgets within the next few months and up to 100 by the end of the year. Sony, LG and Vizio are also working on widget ready models.

You can see how the widgets will work on Yahoo’s Connected TV site – while not a demo it’s somewhat illustrative:

http://connectedtv.yahoo.com/

The widgets look a lot like iPhone apps and will be readily available for free download. And like Apple’s approach, the Yahoo Widget Engine will be an open platform that anyone can develop on so the sky will be the limit in terms of the number and types of applications that can be created.

Samsung's 7000 and Yahoo Widget Engine will provide access to Web services like Flickr

Time is Running Out for Newspapers

The next year or two (if it takes that long) will most likely be the beginning of the end for many newspapers if they don’t figure out a way to make money on the Internet.

For instance, last week after 146 years in publication, the Seattle Post-Intelligencer ceased operations as a print newspaper, reduced its staff by over 80% and converted to a slimmed down, online only publication.

And the P-I is not the only one. Last month Denver’s Rocky Mountain News shut down completely. And there are a host of other newspapers on the ropes, including the Chicago Sun Times, the Boston Globe and the San Francisco Chronicle to name a few.

Even the mighty New York Times recently had to sell part of its company and seek a $250 million loan from a private investor to help address its financial problems.

Of course, all of these newspapers are grabbling with the same challenge: how do they monetize their content online as more readers move to the Web and information becomes more of a commodity.

There are many ideas floating around about how newspapers can become viable businesses again. Here are a few:

• Make newspaper sites a channel for social media – for example, many papers are using Twitter headline feeds on their sites that are grouped by the sections of their paper to keep readers up to date and engaged with their content
• Publish APIs for independent software developers – the New York Times and a few other papers have taken the lead in publishing application programming interfaces (APIs) that allow software developers to create social media apps using New York Time’s content – for example, here’s a Gmail gadget built using one of the NYT’s APIs:

• Jump on the electronic newsreader wagon by bundling content with the purchase of a reader device – for example, Newsweek Magazine might try to get new Kindle owners hooked on Newsweek's electronic version by giving them a free yearly subscription
• Become more deeply integrated into the communities they serve – for example, the Austin Chronicle has thrived despite being a free weekly by becoming active participants in the Austin music and art scene. For instance, the paper started the South by Southwest Conference in 1987, which has grown into one of the world’s premier music and film festivals

Whatever the strategy, I hope newspapers figure this out; and soon. In my opinion, the role of newspapers in investigative reporting , local news coverage and editorial journalism is too important to leave to the anything goes ethos of the Internet. Sadly, they have had 15 years to figure this out so the prognosis is not too good.

Joint WPP/Google Research Program – Trying to Solve the Media Mix Riddle

One of the aspects of online advertising that marketers value most is its measurability. Whether you’re running a direct response or branding initiative, the ability to measure campaign performance on the Web is generally easier, and more accurate, than most other media. That said, one frustration for many marketers has been the inability to determine the effect of their online ads in relation to ads they run on traditional media, and vice versa.

With that blind spot in mind, WPP and Google announced today that they will be kicking off a research initiative that will attempt to answer that very question. The research will study the combined effect of digital and traditional ads, and how they influence consumer perceptions and purchase decisions. Ultimately, the research should help establish criteria to help marketers make more informed decisions when making media mix and budgeting decisions.

According to a WPP press release, 11 research grants were issued out of a field of more than 120 submissions - press release can be found at:

http://www.wpp.com/NR/rdonlyres/E0AF399A-8450-408C-8BA8-C35D31DAE88C/31197/wpp_pressrelease_google_mar09_guid1f7dc1deb1b4408b.pdf?pageContent_PressRelease

The research topics are quite varied and address a range of factors that come into play when determining the impact of advertising on consumer attitudes and behavior. Here’s a sampling of the selected research topics:

• Effect of Online Exposure on Offline Buying: How Online Exposure Aids or Hurts Offline Buying by Increasing the Impact of Offline Attributes
• Does Internet Advertising Help Established Brands or Niche ("Long Tail") Brands More?
• Targeting Ads to Match Individual Cognitive Styles: A Market Test
• How do Consumers Determine What is Relevant? A Psychometric and Neuro-Scientific Study of Online Search and Advertising Effectiveness
• A Comprehensive Model of the Effects of Brand-Generated and Consumer-Generated Communications on Brand Perceptions, Sales and Share

Personally, I can’t wait to see the output.

Google’s New Behavioral Targeting Service - a Step in the Right Direction on Privacy Issue

A few weeks ago I posted about the pressures being put on online advertisers, and the Web sites that run their ads, to address the growing privacy concerns around behavioral targeting.

http://marketingmemes.blogspot.com/2009/02/online-advertisers-need-to-get-serious.html

Now, to liven up the debate, Google announced last week that it will be launching a beta-test of its own behavioral targeting service on AdSense partner sites and YouTube.

http://googleblog.blogspot.com/2009/03/making-ads-more-interesting.html

Google is not referring to the service as “behavioral,” but instead is calling it “interest-based” advertising. From what I can tell, the beta service will offer two of the more common ad targeting techniques:

• Behavioral – where an inference is made regarding a Web user’s interests based on the Web sites they visit
• Retargeting – the re-marketing to an online consumer who has shown previous interest in a product or service, but for some reason never followed through on that interest

These techniques are no different from targeting approaches used by other ad networks. That said, what is different about Google’s service is the proactive approach they are taking to address some of the concerns about targeted ads raised by privacy advocates. For example:

1. They will be expanding the number of formats and publishers that allow users to click on targeted ads served up by Google for detail on the information that was used to deliver the ads and how that information was collected
2. Users will be give the means to view, delete or add information about the types of ads they would like to see through a tool called the “Ads Preferences Manager”
3. They will be providing users with an easily accessible way to opt-out of future targeted advertising

In Google’s own words, their approach gives users “transparency,” “control” and “choice.” Hopefully, these steps will quell some of the rumblings from privacy advocates who have been calling for greater regulation of the online ad industry which is the last thing we need in the middle of a recession.

New 4A's Book Explores the Differences Between Digital and Traditional Agency Services

Earlier this week the 4A’s (American Association of Advertising Agencies) published a detailed report outlining the differences between digital and traditional marketing and the impact those differences have on agency operations and economics.

The report, “Understanding the Economics of Digital Compared to Traditional Advertising and Media Services,” was primarily written for general advertising and media agency executives but is a great reference for any marketing firm that is making the transition to a digital-centric model.

http://www.aaaa.org/eweb/upload/catalog/pdfs/MG18.pdf

The report validates what a lot of people who work in digital already know; digital is a different and, in many ways, more complex medium in terms of both planning, creative and execution. And while the report’s findings may seem obvious to some, there are a few gems in the report that traditional marketers making the switch would do well to memorize:

• The amount of agency labor required per dollar of media spend is significantly greater for digital than for traditional media - this is true for all disciplines, but especially for creative, media and data analytics
• Digital media requires much tighter integration between creative, media and production – managing these functions in silos like most traditional agencies do will not work with digital assignments
• Digital assignments frequently resemble software development projects – the staffing models and talent that many traditional agencies have are not sufficient for the complexity and size of these types of assignments

As more marketing and media budgets move online, agencies are going to have to make changes in their staffing and operating models to keep up. It’s not going to be easy, but at this point traditional agencies really don’t have a choice if they want to remain relevant.

What Would Nokia Do?

I just picked up Jeff Jarvis’ new book, “What Would Google Do?” In the book Jarvis deconstructs Google to determine how other companies can think the way Google does as a means to replicate their incredible success. His premise being that our economy and society have been so altered by the Internet that the old ways of thinking are not only outmoded but counter-productive. To Jarvis what’s needed is a new way; the Google way.

After reading the first chapter I believe Jarvis may be on to something. However, I think there’s another company that has a story that is just as, if not more, compelling and relevant for businesses that are trying to find their way in the current environment. That company is Nokia. Here’s what I mean.

The New York Times reported today that an astonishing 2.6 million jobs disappeared in the last four months – a rate unseen during the post-war era. This dramatic decline led the Times to speculate that the growing job loss “may reflect a wrenching restructuring of the American economy…and that many companies [appear to be]…abandoning whole areas of business.” A depressing assessment, but probably not too far from reality.

http://www.nytimes.com/2009/03/07/business/economy/07jobs.html?em

This reminded me of a case history I read awhile ago about Nokia and how it evolved over the years in response to changing conditions.

Nokia was not always the mobile communications giant it is today. It actually started out as a wood-pulp mill in 1865 and eventually, through acquisition, became part of the Finnish Rubber Company in the early 20th century.

By the 1980s, Nokia was a conglomerate that manufactured an array of wares including, among other things: paper products, tires, footwear, personal computers, televisions and telecommunications equipment. It wasn’t until 1992 that it decided to divest from most of its lines of business and focus exclusively on mobile communications. This was in response to a steep decline in paper prices caused by the deep 1990–1993 recession.

Today, 17 years later, Nokia is the undisputed mobile phone leader with 40% market share, and was ranked last year by Business Week as the fifth most valuable brand in the world (Google was number 10, but closing fast).

If there’s any silver lining to the current gloom it’s that companies and industries can turn adversity into opportunity. I’m sure it won't be easy, but Nokia is proof that with a little bit of foresight and some good timing it can be done.

Look to Web 2.0 Tools for the Next Evolution in Employee Productivity

Some companies are finally realizing that Web 2.0 is more than just friends re-connecting on Facebook or people Tweeting that their plane just touched down. One day, and it’s coming sooner than you think, Web 2.0 apps (wikis, blogs, podcasts, etc) will also be used by many organizations to improve worker morale, collaboration and productivity.

In fact quite a few innovative companies have been using Web 2.0 tools for several years now for those very purposes. As much was confirmed from a recent survey fielded by McKinsey of 50+ companies. Analysis of the survey can be found on their Quarterly magazine Web site.

http://www.mckinseyquarterly.com/Six_ways_to_make_Web_20_work_2294

Most of the surveyed companies are still figuring out how to integrate Web 2.0 into their organizations. This is to be expected with any disruptive technology. A few adventurous innovators get the ball rolling; they in turn influence the early adopters who validate the innovators and so on. Eventually, the new technologies and the myriad applications they hatch become widely adopted. Thus goes the technology adoption lifecycle.

To me what makes the report so useful was the identification of two factors that can make or break a corporate Web 2.0 initiative (the report actually identifies six factors but I think these two are the most important):

1. The best Web 2.0 initiatives originate with users, not management - for anyone who has designed a Web site this makes complete sense. It’s hard for even the best designer to know what users want without an in depth understanding of their needs. In the context of Web 2.0, it appears this input best comes in the form of the types of grass roots apps front-line employees develop on their own
2. "What’s in the workflow is what gets used” – the survey revealed that employees will not adopt new tools if they are outside of the work processes they are used to using and will view these tools as increasing, not decreasing, their workload

These findings validate Forrester’s highly practical POST approach to planning social technology programs which I highly recommend:

Most companies still don’t know what to do with this new Web 2.0 phenomenon. As a result, they either do nothing out of fear of doing it wrong, or they plan big, management led initiatives that have little chance of success. Hopefully McKinsey’s report will help companies avoid both scenarios.

Personally, I can’t wait for the day when I don’t have to wade through endless emails and convoluted shared network folders to get my work done.

Skittles.com’s Social Media Experiment - Generating Buzz But Not Without Risks

If you haven’t seen it already check out the new Skittles.com homepage - it’s a bold experiment in how to integrate social media into a brand site.

What’s so unique about the page is that the experience is almost completely based on social media content from other sources. User generated messages, videos and other content are pulled to the site from various social media sources such as Facebook, YouTube, etc.

The only “traditional” element on the page is an expandable navigation bar that, among other things, takes visitors to various social media sites based on whether they want to see pictures (Flickr) or chat (Twitter) about Skittles, etc.

http://www.skittles.com/default.htm

Of course this type of strategy is not without its risks. And it certainly places a lot of control over how people will experience the brand into the hands of the unruly masses. But what a way to generate buzz and engagement.

For One Site Fewer Ads Equals Better Performance

Interesting article today on Adage.com about how one site (SmartMoney.com) is increasing online ad performance by reducing the number of placements on their pages.

http://adage.com/digital/article?article_id=134941

According to the article, Smart Money stopped selling one of three ad units (a skyscraper) and saw a 21% increase in click-through rates.

Not bad for a financial site in this environment and a good idea considering the growth of online ad inventory.

The User Experience Gap

You see the statistics and reports about how more companies are increasing their online ad budgets. You see the incredible growth of social media. And you see the high-levels of time spent online by all age groups (even among seniors!)

But what you don’t see are the steady improvements in Web site experiences you would expect considering these trends. For instance, last June Forrester Research published one of its many “Best and Worst” of site design reports.

This particular report focused on 16 B2C sites of companies across four industries: airlines, banks, department stores and MP3 manufacturers. All of the companies were brand names such as American Airlines, Apple, Bank of America and Macy’s (large companies with considerable resources).

Like most usability testing methodologies, Forrester’s approach evaluated basic site variables like presentation, content, functionality and task flow efficiency. What was remarkable about the test was that all 16 sites failed. And this wasn’t an anomaly, at least when using Forrester’s approach. In March 2007 Forrester submitted 16 different B2C sites to the same usability test. That time around 15 of 16 of the sites failed.

http://www.forrester.com/Research/Document/Excerpt/0,7211,45718,00.html

Which raises the question: if the Web is becoming more important to people in terms of the products they buy and services they use why aren’t companies committing the resources to deliver experiences that are commensurate with this growing prominence?

The short answer is that a lot of organizations are investing in improving their consumer sites but are finding that delivering exceptional Web experiences isn’t easy. This leads us to the long answer which is a bit more complicated.

In my opinion there are several reasons why companies fall short in this area. Some are related to organizational barriers and misguided marketing practices. Others have to do with the failure of some teams to use site design best-practices when planning their Web initiatives.

Organizational Barriers – many times the way a company is structured makes it difficult to generate consensus on a Web strategy and even more difficult to sustain it once implemented. Some common barriers include:

• Highly distributed companies without a strong centralized corporate communications or marketing function
• Companies with multiple lines of business with different value propositions and consumer audiences
• Highly silioed organizations

Misguided Marketing Practices – many companies insist that customers are their most valued asset but some don’t walk the walk when it comes to planning their consumer facing Web sites. This is a result, I believe, of marketing practices that sometimes cause managers to focus on the wrong things:

• Product features as opposed to consumer benefits
• Product differentiation as opposed to consumer relevance
• The assumption consumers are purely rational decision makers
• Downplaying the emotional aspect of how consumers consider and evaluate brands
• Underestimating the experiential dimensions of how consumers interact with brands on the Web

Failure to Use Web Design Best Practices – frequently Web teams short-cut critical activities that can make the difference between a decent and a great site. Sometimes this is because of tight timelines or limited budgets. A common result is a Web site that doesn’t meet the expectations of its visitors and is not set up for long term success:

• Design personas to define the needs of various visitor “archetypes” that will come to a site. They are critical and help Web designers create experiences that are based on visitor, not organizational, needs
• Cross-channel scenario maps to help Web planners consider the full context of how a site will complement other media channels and information sources as a consumer moves through a decision making process
• Governance models to ensure a controlled approach to a site’s design, content and management as it evolves - without governance there is no way to say what changes should or should not be made to a site

The gap between consumer expectations and the state of most B2C Web sites presents an opportunity. To seize that opportunity managers need to take a hard look at consumer sites under their charge and ask themselves whether they deliver a unique and valuable experience for their intended audiences. If the answer is no it’s also likely that they are not adding much value to their brands and business stakeholders either.

The New Velocity

For years managers worried about the velocity of their business. The measurement of how quickly they could get their products developed, distributed, sold and consumed. The theory being that the faster the rate of velocity the more efficient and profitable their business. In other words, you turn over more widgets in a year you generate more revenue. You develop and sell 25% more units than last year with the same assets you’re conceivably 25% more profitable, and so on.

Today, with the growth of social technologies managers now need to worry about a new type of velocity – the speed in which consumer sentiment towards their brands might change (whether for better or worse). Social networking tools like Facebook, Digg and Twitter have given people the means to instantaneously and virtually gather to discuss, share their views and spread potentially damaging messages or content about a brand. People, in many ways, are in control.

It goes without saying that this new velocity makes it harder to manage brand perception and reputation. There are many cases of how people in a matter of hours have used Web 2.0 technologies to wreak significant havoc on brands that have been around for decades. One of the best examples being the You Tube video of the Comcast technician sleeping on a customer’s couch while on a service call. Or the legions of parents who this past November joined forces on Twitter to rail against a TV ad for children’s Motrin (the spot was promptly pulled by parent company Johnson & Johnson).

The result is a real-time, mass consumer feedback loop. The impact is greater transparency and accountability for both corporations and brands. To be successful in this new environment it’s not enough that companies develop, distribute and market new products quickly to achieve optimum velocity. What also matters is how openly they engage with their consumers, how well they listen to them and how quickly they respond to their concerns.

Brands that neglect to use social technologies to build bridges to their consumers and monitor their brand health do so at their own risk. In a time of increasing commodization and decreasing differentiation this could be among the best strategies brands have for a competitive advantage.