(MSc) Sebinomics

Marty and Doc Brown did it about 20 years ago in the popular Back To The Future-series: Doc makes a reference to Jules Verne in 1885 and Marty asks for a Pepsi in 1955. Today, pop culture references belong to movies and TV shows like bubbles to Coke.

The other day, I was watching Kevin Smith’s great 2008 movie Zack and Miri Make a Porno and found it interesting how the movie refers to Youtube (and the iPhone), where one of the characters becomes an Internet celebrity within just a few hours because of a video. The Rocker with Rainn Wilson is another movie that depicts the story of a band that becomes famous because of a remarkable video of their drummer on Youtube. In Sydney White college girls fight for the #1 spot on a Myspace Hot or Not ranking. This is not a new phenomenon. Teen shows such as Buffy The Vampire Slayer and Dawson’s Creek played with it already by the end of the 1990s. 

In my opinion, one of the coolest pop culture references can be found in the last episode of  Buffy The Vampire Slayer. Buffy remarks to Angel, in relation to his disapproval of her controversial relationship with Spike, “Are you just going to come here and go all Dawson on me every time I have a boyfriend?” For better understanding: Dawson, the main character from Dawson’s Creek, another popular WB’s TV show, is a teenager who believes in romance but is rather melodramatic and helpless when it comes to love. He also believes to find all of life’s answers in Steven Spielberg movies. And there we have another reference to pop culture.

More examples: The Simpsons use Google, Shrek sings on American Idol, the characters in Gossip Girl read GQ and use cell phones like the BlackBerry Storm, Blue LG Chocolate, and LG enV Orange, and there are many more. This is obviously only the beginning. I haven’t seen a reference to Twitter yet. But it is only a matter of time until The Twitter Song gets picked up by an influential screenwriter, who brings it to the mainstream. Looking forward to that.

Some music labels have by now understood that file sharing is not necessarily a bad thing for the music business, since it can open up other channels of revenue from concert tickets to t-shirts and other merchandise. Jeff Howe explains in his 2008 book Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business how a band called Hawthorne Heights managed to avoid falling into a major label’s debt trap with a big help of the Internet and them being reachable and touchable for their fans. This is what I highlighted in chapter 3 of Crowdsourcing:

Distribution used to be the point in the supply chain at which big companies could control the market. If smaller players couldn’t get their product to retailers, they couldn’t compete. The Internet turned this upside down by making distribution as easy as hitting Send on an e-mail. Hawthorne Heights didn’t need the bank or the trucks. Instead it had the crowd. (p. 92)

But [Hawthorne Heights drummer Eric] Bucarelli wasn’t looking for a big check. “We could have gotten a million dollars up front and all lived large for a while,” he says, “but we’d have spent the rest of our careers trying to recoup.” That’s the way a standard-issue major label contract works: Any label’s outlay associated with the band–from studio time to radio promotions–is billed against the band’s advance. … Hawthorne Heights needed a cheap way to build demand for their June 2004 album release. Enter the crowd. (p. 93)

[O]n tour, each musician would spend four to five hours [on MySpace] every day, engaging their fans in banter and generally making themselves accessible. “the fans loved it,” notes Bucarelli. “They can’t believe they’re getting a response. You’ve got a fan for life.” (p. 94)

Electronic word of mouth becomes a marketing strategy that doubles as a distribution strategy, as more and more potential customers download the group’s music and in turn–the band hopes–share it with their friends as well. … In a digital ecosystem, the music becomes a loss leader whose purpose is simply to create more fans, more evangelists, more ticket buyers. Most up-and-coming bands don’t regard illegal peer-to-peer file sharing as piracy; they view it as a promotional and distribution channel. (p. 95)

Hawthorne Heights is not the only band that cut off the middlemen. Many artists figured out how to reach their fans through different social media channels. One of my absolute favorite songs “Mario Kart Love Song” by Sam Hart reached two million viewers within a couple of month from its upload on Youtube and eventually found its way to iTunes and CD Baby. Sam receives a way bigger share from every item sold on these platforms than if he had a deal with a major label. Well done, Sam!

lovers vs haters

If you have ever posted a blog entry, a Youtube video, or a picture on the internet that is remarkable and different from the mainstream, you might have received comments by so-called haters. The Wiktionary defines a hater (as by March 24, 2009) as “One who hates; One who expresses unfounded or inappropriate hatred or dislike, particularly if motivated by jealousy.” Online-hating is very bothering (and unnecessary), because it makes people insecure and it is so easy for haters to write inappropriate comments and stay unknown. As the Wiktionary states, it is mostly driven by jealousy. 

A world famous author once told me that if you don’t get hate-mails, you’re not important; meaning, you don’t touch them where they don’t want to be touched. And that’s a fact! The more famous and important you become, the more haters and lovers will follow you. Fortunately, lovers–your fans–will protect you from haters. I have experienced that lovers are willing to put things straight and stand up for you. 

In the Youtube video Kevin Smith Part 4: The Dark Side Of The Internet, Kevin Smith, a popular American screenwriter and director, talks about how much negative comments he found on the internet about himself and his work affected his well-being and how much time he wasted fighting those comments himself. Later he realized that it was not necessary to engage in conversations with haters, or at least, not to fight their opinion. Everyone has her own opinion and there is no need to force yours onto someone else, even if they attack you verbally. 

I suggest to anyone being active on the internet:

I got my opinion and you got yours. We can discuss our differences, but in the end both opinions stand and we have to accept them. And if one party starts using insulting words, just erase them out of the picture. It is easily done on every platform, with just one single click.

It is old news that Twitter grew fantastic 1382 % from February 2008 to February 2009. And it is obvious that more and more products and services for and around Twitter will come up to give us more opportunities and choices. I already mentioned Tweetie and the Brain, a Twitter consulting agency from the UK, in an earlier post, and yesterday, I found another interesting service: twitterjobsearch.com.

The Swiss commuter magazine NEWS wrote in its March 19, 2009, issue that Workdigital, an Austin-based company, just launched twitterjobsearch.com, “a job search engine which enables you to search through global job opportunities that have been posted to Twitter and to other social network sites,” as described on their website. The service goes through tweets and filters those messages that contain information on a job opening. These job openings are then listed on twitterjobsearch.com. Users are able to search for jobs with keywords.

TwitterJobSearch.com

This is a good way to find out if a company is future-oriented and already uses Twitter as a channel of communication. In some cases, this could be an important aspect when considering to take a job or not. Believe it or not, there are many companies that are very restrictive when it comes to their employees using social media at work. I would never accept a job that does not allow me to use social media for work. And I am by far not the only one thinking like that.

Jobs openings on Twitter will obviously be picked up first by Twitterers, who are the earliest adopters of new social media channels right now. This means that the company posting the opening, will be rather open to social media and is looking for someone, who fits into their company culture. In a few years, when every company will have joined Twitter, the discussion will be different. But that is far away. 

I see great potential in all Twitter-based services, since Twitter might be the next big thing. And everyone moving now, has definitely a first-mover advantage.

Mr. Big is one of my all-time favorite rock bands and I was very happy to read that they are reuniting. Billy Sheehan, bassist of the quartet, has been a great musical influence to me and I love everything he has done over the past decades. Now, I can’t wait to check Mr. Big’s tour schedule and decide where I want to go see them playing live. The only thing I am really afraid of is that Mr. Big will follow into the other reunited rock giants’ footsteps and charge horrendously high ticket prices.

Mr. Big reunion, 2009

Do you remember how much fans had to pay for a The Police concert ticket for their reunion tour? I even missed out on the Genesis reunion tour because I found their prices insanely high, and I love Genesis! One can say, rock giants such as The Eagles or Van Halen are worth every coin (many, many coins infact) you spend on a concert ticket. And if you compare ticket prices of reunion tours with those of today’s pop and rock stars, there might be no significant difference. Event organizers are also charging very high ticket fees for established artists like Metallica, P!NK, Tina Turner, and Madonna.

Artists could claim that since the business model in the music business has changed and artists get less money from physical music sales, they have to make it up with gigs and merchandise. Somewhat understandable. But, let’s say a band sells 10,000 tickets for one show at $100, which is about what a ticket for a reunion could cost or even more. That is 1 million dollars coming in, not considering the hundreds of T-shirt sold for $30 or (usually) more.

Sure, there are many people that have to be paid from the proceeds. But with a couple of dozen of gigs and 100,000+ fans coming to the concerts, there must be enough money around to make everyone involved in the operation more than happy. Except the fans, who in the end do not get anything more than “just a concert.”

An article in bombippy.com said, “The ticket prices will continue to rise until people get fed up and stop coming to shows. Then the music industry will blame poor attendance on concert DVDs and home theatres.” One can claim that this is simply a free market economy and that is how it works, and as long as there is demand, there will be supply. Very true. It is also very true that people are starting to get fed up with it and are seeking alternatives. Many small music clubs are filling up again and open mics are celebrating a revival in Europe.

With every movement there is a counter movement and I am sure that in these times where our economy is individuals a hard time, people think twice before spending a crazy amount of money for “just a concert,” when they can have a more personal experience at a music club closeby or an interactive experience online where they might be one of the main artists.

TweetShirts

My buddy Sam asked himself, How do you promote a product on Twitter? Bringing it to the point: his TweetShirts. He realized that if you mention your product too much, your followers start leaving you because they take it for spam. A tweet that kept me thinking was posted on March 14, 2009, at 8:02 AM, by Ralph Bassfeld, who stated, “People who put shortened urls in their Twitter profile usually have something to sell: i.e. affiliate links etc. [no follow love from me].” As you can see, better be very specific with your posts when including a URL.

Sam learned that writing a free e-book has proven to be a very effective way to gain the interest of friends, followers, and eventually buyers. This is why Sam, also known as Magganpice on Twitter, invested 7 minutes of his time and wrote a 12-page e-book for innovators and early adopters to read and write about Twitter promotion and, especially, his TweetShirts. Find his free e-book here.

In his blog, Sam also asks the question, Does this promotion work? His answer: Only with your help! Obviously, buzz marketing is the way to go here, like so many other times. Tell friends and followers, who then tell their friends and followers and soon it will be picked up by more influential bloggers and other writers and TweetShirts will eventually find their way to the masses.

This is a great marketing approach and I’m very anxious to see how far Sam will go with it. I’m blogging about his TweetShirts and some of you guys reading this post might blog about it too. Next step: Buy a TweetShirts and tweeter offline. Let the fun begin!

Lidl's slogan for its Swiss premiere

Lidl, a European discount supermarket chain of German origin that operates 7,000 stores, will be opening its first stores in Switzerland this coming Thursday, March 19, 2009. I am very anxious to see the implications this will have on consumption and customer behavior. Are people going to shop at Lidl because it is going to be cheaper than its main competitors Migros and Coop? Are Migros and Coop going to lower their prices or are they going to position themselves in a more premium segment? 

Three days before its Swiss premiere, Lidl mailed shopping bags to households in the regions where the first 13 stores will be opening. Lidl’s slogan is, “Mehr in der Tasche” or in Englisch, “More in your bag (or pocket).” This is an obvious statement for their low-cost products. Another keyword on the bag is emotion. I have shopped in Lidl stores in other countries and have never had a remarkable experience, unlike at Coop across the street from where I live. Coop Biberist proves to be a great place to shop. Their employees smile at the cashier, help you find products in no time, and simply make you feel welcomed at any point in time when you shop there. THAT is an experience I hardly get in another supermarket. 

Maybe Lidl Switzerland has something special in mind. We will see. Whatever Lidl comes up with, I suggest Coop and Migros to focus on emotion marketing to foster their image as specialists in groceries. How many times have I heard people saying that they don’t mind paying more for a service or a product as long as they enjoy the experience in the store? Many times! And I am surely with them.

CNNMoney.com reported in their Laid off? Hyundai will take your car back article on January 5, 2009, “Hyundai Motor America is taking aim at Americans’ worries about job security: If you buy a new Hyundai and lose your job within a year, you can give it back. … With no extra charge to the sticker price, the program pays the difference between the car’s trade-in value at the time the owner files a claim and any remaining balance on the loan up to a maximum of $7,500.”

Rick Haglund’s March 04, 2009, article stated, “While car and truck sales in the United States are off 39.4 percent so far this year compared to the first two months of 2008, Hyundai’s sales are up 4.9 percent, according to Autodata Corp.”

Alan Ohnsman wrote in his General Motors mulling Hyundai’s car-return program article on March 6, 2009, that Broward-based auto dealer Rick Case reported sales at his Hyundai dealerships in Davie, Fort Lauderdale, Georgia and Ohio were up 30 percent last month compared with February 2008. ”Customers feel safe when entering a lease, loan or buying program with Hyundai,” Case said in a statement.

What a great idea in these difficult times. When customers are afraid of investing a very large amount of money, why not comforting them with a special offer like Hyundai’s? Take the fear from your customers and they will buy your product. Hyundai is proving it. And if Hyundai can do it, why can’t others who play in the same league?

Alexandra Krings wrote a great article called “Keeping An Open Mind” in the 1/2009 Bass Professor magazine, stating that it is important for musicians not to stick to what they know best, but to keep an open mind and to find ways to challenge oneself over and over again. Very true in my opinion. Nonetheless, people might ask, Is it better if I keep an open mind and learn how to be an all-rounder or shall I focus and be a specialist in my niche? 

If we just take that approach to the business world–which of course can also be the music business–it is obvious that if you are an all-rounder, that is a person who is skilled in many different areas, you might be able to work in many different divisions, companies, or even industries. Unfortunately, there will be more competition. Since all-rounders don’t have their defined field of expertise, the remarkable part is missing and chances to land a job or a gig are rather low unless you are the best all-rounder around. 

Specialists, on the other hand, are remarkable, because they are usually one in a million. They belong to a small group of people who know best about a certain topic and/or have the ability to do something better than others. Sure, a specialist will never have has many possibilities as an all-rounder, but a specialist might have more opportunities. According to wiktionary.com, specialized means, to be highly skilled in a specific field. 

A good approach could be to be a very good all-rounder in the beginning. First you need to learn all the basics, try to get a feel for all different kinds of approaches for your job and for the jobs of people working with you. As my friend T.M. Stevens told me, “You gotta know the rules if you wanna break them!” Once you know the rules move on to become a specialist. until then you will have figured out what you are best at and what you like doing most.

My apprenticeship as an Electronic Technician taught me how to be an all-rounder. I learned all the basics for the job and saw every division of the company that trained me. All apprentices went from division to division, such as mechanics, engineering, business development, sales, and more, and were able to find out what they liked best. Later on most of us went to a university to specialize. 

Alexandra Krings is right when advising to keeping an open mind. Still, I suggest to specialize once you know the rules. I have quoted Tim Ferriss, author of ‘The 4-Hour Workweek’, in my blog post Emphasize Strengths, Don’t Fix Weaknesses before and find it appropriate to give this input again, “The choice is between multiplication of results using strengths or incremental improvement fixing weaknesses that will, at best, become mediocre. Focus on better use of your best weapons instead of constant repair.”

Twitter might be the next big thing. And like with all next big things first-movers have a significant lead on potential or future competitors. Even though Twitter has been around since 2006, it has still not been able to clearly established itself as the next big thing for the masses. Nonetheless, I was very surprised when I found a link to a Twitter consultancy and marketing agency called “Tweetie and the Brain.” 

Outsourcing

On second thought, why was I surprised? There are clearly many businesses and institutions out there that don’t have time to be bothered with yet another social media channel and rather outsource that to professionals. And for £99 per months Tweetie and the Brain will “create & maintain your Twitter presence based on carefully defined & guarded parameters, and produce weekly or monthly intelligence reports showing you what’s going on out there.” That’s what their website says. 

I know from different businesses and artists who do not want to emerge into the social media jungle and outsource all their Myspace, Youtube, Facebook, and other internet activities to students and/or professional web publishers. It is obvious that these businesses and artists rather focus on their core business. For many it is simply not possible to first learn how to use social media efficiently before they can actually start using it. 

This is where agencies like Tweetie and the Brain enter the picture. I have to admit that I don’t know much about the agency, but I like the idea behind it, because I see the need. There are businesses who are willing to pay for such a service and therefore, we need to feed that demand. On the other hand, I feel that a Twitter channel has to be as authentic as possible to keep the company’s followers happy. It is like on Youtube or any other net channel: You have to craft a story that is authentic, otherwise you will alienate your audience. Therefore, it is crucial to set up a very close collaboration with your outsourcing partner.