Circles Mean Safety

There is something extremely novel about an online social networking website that I am looking forward to my parents being on. How can this be so? Its achieve by what Google calls Circles.

Unlike Facebook, Google+ is built around you grouping friends into categories and then sharing specific information to specific categories.

This is actually a bit of wisdom from marketing. The best way to get someone to click on your ad, is to show the ad to people who are interested in your subject. Google Adwords uses gigantic algorithms to accomplish exatcly that.

One of many reasons I left Facebook was how impersonal it was. We all legitimately want to reach out and get some attention sometimes. However, the structure of Facebook’s status updates made me feel shallow, and never satisfied the desire to have rich online relationships.

Circles makes it possible to only see content someone actually thought was worth your time. By doing this, we filter out the limits to self expression posed by Facebook and Twitter.

More Between Friends

Announce a new puppy and get real reactions

The other tools offered by Google+ encourage a complete paradigm shift in online communication. Huddle, which acts like instant chatroom texting, and Hangouts, which offers a revolutionary method of group video chat, move away from mass announcements to tightly knit conversations.

Emoticons and “Like” buttons are great examples of us trying to move conversation forward by including a singularly important aspect of real-word communications: reactions. Google+ achieves this in the most natural way possible by offering a easy method to simply see each other with Hangouts.

Goodbye Internet Insecurity, Hello Happiness

Chiefly, Google+ has the potential to make online social networking much more satisfying. Without all the numbing social “noise” presented in the Twitter and Facebook feeds, we can have more time and energy to engage each other.

Our behavior is compartmentalized and situational in real-life, Google+ honors that on the internet.

With Circles, I share a joke only with the people who will enjoy it.  With Huddle, I can make plans to visit my separated Mother and Father without being the owl the relays messages between the two. With Hangouts, we can avoid loneliness no matter how far we are from friends.

Enjoy this comic while we wait for Google+ to be opent the public.
I now have Google+ and can invite you!

Ever since my mother revealed to me that my middle name was chosen after the great poet Kahlil Gibran, I poured over his work to unearth what was so inspiring. Rereading The Prophet as a student of economics cast an interesting light on his words.

Next time you find yourself betting your retirement on APPL or MSFT consider:

And tomorrow, what shall tomorrow bring to the overprudent dog burying bones in the trackless sand as he follows the pilgrims to the holy city?  …And what is fear of need but need itself? …Is not dread of thirst when your well is full, thirst that is unquenchable? …For to be overmindful of your debt, is to doubt his generosity who has the free-hearted earth for mother, and God for father.

Mind you, I am presenting a highlight reel of what is a larger passage. I see two take-aways in this:

• If you are satisfied, horde not.
• Strangely: There are more important things than money.

Now, I understand this is a pretty liberal way to start off this review –  the first economish chapter in the book is on giving. Why doesn’t the dog understand that the voyage to the holy city is more important than the bones he stores in the ever changing sands? Or – to put this in a little perspective – in the islamic tradition should any man on his pilgrimage to Mecca die along the way, God understands he lived with purpose and will accept him into heaven.

If only the willful reallocation of excessive wealth occurred in America as the prophet suggested… See Gini Coefficient

On Buying & Selling

Equity is central throughout The Prophet. Gibran’s philosophical poetry praises markets as the vehicle of obtaining satisfaction, while offering metered warning of their downfalls.

It is in exchanging the gifts of the earth that you shall find abundance and be satisfied.
Yet unless the exchange be in love and kindly justice, it will but lead some to greed and others to hunger.

Still starkly relevant to today’s economic issues, it is surprising how beautifully the failures of free-trade can be composed.

On Work

For to be idle is to become a stranger unto the seasons, and to step out of life’s procession, that marches in majesty and proud submission towards the infinite…
…For if you bake bread with indifference, you bake a bitter bread that feeds but half man’s hunger.

As a workaholic myself, I find the first quote quite validating, yet the second quote is easily the stronger metaphor. Economic schools of thought, even the popular neo-classical and monetarist, recognize market failures. These are generally occur when a market does not function efficiently. However, economists rarely consider the more philosophical market failure of goods and services not satisfying the people.

Understanding that at first this idea may be counter-intuitive (why would you buy something unsatisfying?) and cause outrage among economist, let me elaborate. From the consumer’s perspective, there are goods and services that we purchase because we like them, and those we purchase because we need them. The demand for these goods & services are considered elastic (as with the former) or inelastic (as with the later). Inelastically demanded goods and services we will buy despite the cost, and often despite the quality.

What happens when something we need is supplied in less than satisfying fashion?
For instance:

• Riding a dirty city bus full of crack-heads to work only satisfies half my pleasure in travel.
• A limited grocery store only fulfills half my pleasure in eating.

This non-traditional market failure also applies to the labor market. In the first quote above Gibran claims labor is inherent, and that denying it is unnatural. Sadly, we must often take work despite the quality of its conditions in order to meet our other worldly needs. Should a man bake bread with indifference because his hourly wage is terrible, the resulting bitter bread is but the by-product of inequity.

Albeit from a different chapter in the book, Gibran does warn of deviant employers:

And suffer not the barren-handed to take part in your transactions, who would sell their words for your labour.

The title of the entry (above) rolled out of my mouth at work when my co-worker apologized for distracting me with a joke. Since that moment it has stuck. Fundamentally, I get the most theoretical bang for my buck by laughing.

Initial Benefit of Laughing Temporarily Exceeds Working

How so? The money I’m spending in the situation is time I could have been working. However, the telling of the joke and time spent laughing was pretty short. Thus the costs where small. In economics we call these opportunity costs, especially since slacking off can be a difficult expenditure to quantify (not that people don’t try).

As an economist, where I hear “cost” I wait to hear “benefit“. The benefit of laughing with friends has to be one of the easiest and simplest joys to cash in on. You don’t really need mathematics understand that laughing at work is totally worth it. That doesn’t mean I won’t analyze it econometrically (see graph).

The graph only works for a one to two day period.

*There are exceptions…

Known as diminishing marginal returns, this exception has been observed by economists and fast food lovers alike. One, two, three cups of coffee = happy & alert. Four, five, or six cups of coffee= jitters & diarrhea. Observe the diminishing cheesebee to the right.

Fortunately, laughing can be well sprinkled throughout the day rather than nonstop until we cease to benefit. What we spend our daily time on may not be a topic most of us consciously consider – or consider it somewhat outside of our control. I encourage you to incorporate humor as much as possible. Like this great article: College Life, As Told Through Stock Photos.

May I introduce my favorite economic pondering: Lauderdale’s Paradox, originally thought up only as a vexing puzzle by James Maitland, the eighth Earl of Lauderdale (1759-1839). Lauderdale speculated that there was an inverse relationship between public wealth (anything we enjoy) and private riches (anything that we enjoy but is scarce).

James Maitland

The paradox:

Applying the logic provided by Lauderdale to natural resources we find something scary. As environmental resources become degraded, and thus more scarce, private markets appear for them. To obtain the same level of benefit we previously enjoyed from an environmental resource, we must now purchase that benefit from those who control these private markets. (see Herman Daly for more)

The problem: This is easily explained by using the example of plastic water bottles. An obvious necessity, from which we all benefit, that is privatized and rationed at a profit whilst polluting and otherwise harming the environment. One must wonder, if scarcity makes things profitable – what incentive is there to protect them? Indeed, this is what is known as a perverse subsidy.

For example: A river runs past one city on its way towards Los Angeles. This other city is brimming with polluters and litterbugs, and all the garbage flows right down the river to Los Angeles. The public supervisors of Los Angeles have two options: spend $3billion on a water sanitation plant, or pay $1billion to the trashy city so that they will clean it up.

Of course, the public supervisors drop $1billion instead of $3billion and the people of Los Angeles get clean water. This is efficient under Coase Theorem.

But they just spent $1billion to receive a benefit they previously received for free! Further, the other city is now being paid for littering. Consider: What incentive does the Dirty City have stop polluting?

It’s About the Definition of Wealth

In the example above we see how there is an economic incentive to trade public wealth for private riches. However, Lauderdale himself knew not of scarce resources. The 1800′s were a joyous time of thoughtless natural resources exploitation. Even then, in the hay-days of imperialism, Lauderdale postulated this theory. Why? Because Lauderdale saw public wealth, or intrinsic value, as part of humanities total benefit. Under that logic, he assumed that no one would ever accept paying to receive the same total benefit. Unfortunately, in our age we seem to measure wealth in private riches – and completely neglect their effect on public wealth.

Please, let me know what you think. How could the Los Angeles river disaster have worked out differently?

You probably know a lot more about marketing than you give yourself credit for. For instance, can you tell me whats wrong with this email notification to the left?

Perhaps you noticed that the first two lines said almost exactly the same thing, or maybe you noticed that one of the very first options was to unsubscribe to the email. They had three sentences to prove their value to you, and they utterly failed.

I tell every single one of my marketing clients the same thing: you are already the expert! Especially if you are a consumer of social media (i.e. Facebook, Twitter). On a daily basis you make hundreds of decisions regarding how you are going to spend your time on the internet, dealing out minutes (or even seconds) to this site or that site, this video or that video, this friend or that friend.

Try thinking of it this way: In the marketing business its always good practice to give your clients a few options – like letting them choose from three different business cards. Browsing the web is constant game of choosing your favorite business card. Every single link, site, image or video has been built out of complex code to show you something you might enjoy.

Test it out.

To the right are four Facebook advertisements I randomly selected for your enjoyment. Which of the three are you least likely to select?

Comment with your choice!

For me:

Okay, smiling woman who obviously just graduated…. 3/5.

Why? Because how am I supposed to know what SOU CourseRank means?

For me at least, the most horrible advertisement here is the second one down. Despite 14 people liking the advertisement, I have no idea how Gordon and Sherry Petty’s tiny hugging image is supposed to attract my eye. Not to mention that the paragraph featured to the right of their image feels very choppy and stilted.

I’m sorry to say, but it looks like the “Best Top Marketers” could of learned a lot about my post Don’t Fall for Facebook. I fear the money they are wasting on that advertising.

With the exception of those who are very vain (of which Gordon and Sherry may belong), it is generally good advice to create advertising and marketing schemes you’d like to click or participate in.

Fundamentally, we LOVE marketing!

I know this can be a scary thing to admit, but marketing makes the world a better place to live. (Let the angry emails commence) We love to consume marketing. So much so, nearly one third of all american workers are employeed in a marketing related position.

Think about it: The last time you were in a waiting room, did you pick up a magazine? You may have noticed that almost all the pages of a standard popular magazine are advertisements. Sure, that frustrates most of us – but then again – it was much better than waiting without a magazine. You may have only read the main articles, but I bet there was at least one significant period of time in which you considered if a Mercedes-Benz was in your future.

Marketing is fun. People will go out of their way to find marketing. For instance, Apple always has a link for their latest video right on their front page.

Have you ever looked up an ad on Youtube?
I’m open to discussion – please leave a comment below.

If that is all true, how are you still employed Kyle?

Its shocking, but people make mistakes and are often inconsiderate of their audience. Although it is a huge and rewarding step to realize how marketing affects you and to become conscious of your marketing tastes, it is only the first step.

I encourage people to embrace marketing consciousness for a number of reasons, not the least of which is their own professional success. However, there are PhDs in Marketing offered for a reason. The ability to analyze yourself, someone else, and how those two relate is a complex science. Outside the academic realm, marketing is still difficult. Within corporations there is a significant amount of politics, and sometimes bad decisions are made solely to prove that someone had the power to make decisions.

We can learn the most from bad marketing. Paraphrased from one of my favorite economists, Herman Daly: When smart people make mistakes, there is more to be learned. Consider the following two recent brand image mistakes I present below. Can you think of any justification for these ideas?

The CDC, creator of FruitsAndVeggiesMatter.com, is doing its best to encourage healthy eating habits in america. More renowned are the USDA’s efforts with its Food Pyramid, and Michelle Obama’s campaign. In truth, the issue is being tackled by many organizations – so why hasn’t the message stuck?

Lucky Charms will give you an hour glass figure!

So, as I usually do, I pictured what I would do if I had the power. I’m not exactly a health nut, although I like to talk like one. I probably represent the median of American interest in health.

If I were in charge of CDC’s marketing campaigns, I would think about touching a few more audiences than happy-go-lucky mothers and WebMD addicted hypochondriacs.

Perhaps you remember not to long ago when the USDA released the new “MyPyramid” program. I’m willing to bet that the primary reason you remember it its because General Mills and Kellogs had a marketing fiesta. Suddenly, everything was whole grain – even Lucky Charms!

That pretty much summarizes USDA’s most successful campaign – and although I haven’t thoroughly researched it, I’m betting America didn’t lose any weight because of it.

Advertise to More Audiences!

Exploring FruitsAndVeggiesMatter.com, I found that the image featured to the right struck me.

Yes! Show me how to eat! I’m the kind of college student that favors restaurants that show pictures of their food.

I have NO IDEA how much cabbage constitutes a serving of vegetables – much less how I am going to work that into my daily meals. This media-rich and sentenceless table is one of the best promotions for a healthy diet I have ever seen.

Mind you, I am fully aware that my taste is not every audience’s taste – but the USDA and CDC could benefit from marketing to my market. There are plenty of college students that left the nest with no idea how to cook – give them a menu! A book full of images like this table to right could really train people what servings look like and give great ideas on how to get the necessary servings. Heck, build an App for it. Make each row a slider and let me slide through morning, mid-day and evening meals until I find a combination inspiring.

Everybody learns differently, focusing on media-rich website and information is the CDC’s best decision. I say this because the plain-text types have generally already wiki-ed everything they need to know. With media-rich pages you appeal across languages, ages and cultures.

The Perfect Poster for a College Dormitory (Yes, I created this image.)

Of the four porn-centric articles featured, I was most moved my Davy Rothbart’s piece “He’s just not that into anyone“. Referenced on New York Magazine’s cover as “Man’s Vanishing Libido”, the piece is a composite of personal experience and personal interviews. Rothbart speaks candidly about losing the ability to honestly enjoy sex due to over-saturation of pornography, and his discovery of others who suffered similarly.

Normally this topic would be too taboo for me to ponder, however having a healthy relationship with a supportive partner has empowered me to consider issues human sexuality safely and confidently. I am most appreciative of New York Magazine’s and Davy Rothbart’s interpersonal focus. The piece amazingly encompasses almost all the answers to questions that may arise from the news.

Most touching was the prevailing romanticism these men expressed. In the end, they wanted to be there with their partners – not day dreaming in the middle of intimacy. The human body rejects the blurring of virtual reality and reality. Sure, the article clearly illustrated that these people were having trouble separating the two – but it was clear that their hearts desired better.

• Your total audience is not your target audience.
• Tweens & Elderly aren’t buyin’ anything.
• Don’t fall for Facebook.

Don't Fear Excluding People

Let’s consider the market for a magazine. You’re the head of marketing for a print and online magazine. To begin with, there are two easily identifiable revenue streams: print subscriptions and pay-per-click display ads on the magazine’s website. If the goal is to increase sales from print subscriptions, who is your target audience?

This is the point where many confident business people make a misguided decision. The magazine probably understands what it’s total audience is, however that is not the target audience for our goal. A respectable magazine may be enjoyed by a variety of demographics, that does not mean all of those people are the type to pony up for a print subscription.

Do your ROI a favor and axe the teens and very elderly. This may seem counter-intuitive to anyone who uses Google Analytics, for in some circumstances these demographics may compose nearly 30% of a website’s traffic. Don’t be fooled. They still aren’t going to buy the print subscription, and in my experience they don’t purchase online content either. America’s internet-addicted teens and tweens probably frequent your site, but I warn you – don’t hang your business on the hope that they’ll click the ads on your website.

Don’t Fall for Facebook

Target Audience

As head of marketing you’ll no doubt want to run at least a small campaign online even though you’re promoting print subscriptions. Especially considering the prevalence of online magazine content, many potential subscribers are bound to be using the internet despite enjoying a physical copy of their subscriptions.

If you want attract purchases, focus on the part of your audience who is actively purchasing. Regardless of how many or few people from this demographic there are, these are the money makers. It is dangerous to generalize too much about who these customers might be, but I feel confident in suggesting that you start with those who make more than $40,000 per year. Other specifics can very drastically (Overstock.com serves 68% women vs. Ebay’s 50/50 split).

Don't Fall for Facebook

Once you’ve sculpted your true target audience, its time to catch them in the act. Display (graphic) ads require research. Not only do you need a honest target audience, but you need to know where that audience likes to browse the web. Ads are annoying to everyone, there’s no reason to pretend otherwise. What a wise marketer must do is gage how likely a visitor is to leave the site their on because of an ad. This is the number #1 reason I tell people, “Don’t fall for Facebook Advertising”.

People aren’t on Facebook to leave Facebook. Rather, Facebook is a communication site – where people browse and chat. A majority of people who click a Facebook Ad (causing you money), will click the “back” button the moment they discover they’re no longer on Facebook (or “bounce”). An amazingly easy way for small businesses to completely waste their small advertising budgets.

By focusing on capturing people where they are likely to be interested in distractions (i.e. google search, ehow.com, discussion forums, blogs about your industry), you earn the lowest bounce rates and highest praise from your co-workers.