Archive for the 'Technology' Category

The Financial Times reported yesterday that Apple is considering launching an “all you can eat” iTunes service that would allow customers to get unlimited access to the iTunes library in exchange for their paying a premium for iPods and iPhones. This mirrors Nokia’s “comes with music” offer the Finnish company announced last December in which folks will be able to get all of Universal Music library of music by paying a premium on top of the price of a Nokia phone. The FT reported that Apple might also be examining a subscription service in which iPhone customers pay a monthly charge as part of their phone bill to get unlimited access to iTunes tunes.

What’s interesting about this is that Apple is proving itself once again to be adept at shifting and innovating as the market moves. Rather than simply sticking to the business model that has made them the most successful seller of music downloads (by far), the black turtle-necked one has recognized that being the biggest in ANYTHING is no guarantee of future success. Consumers don’t like being taken for granted and if something new and shiny comes along, such as unlimited music, they might easily be tempted to dump their iPods or iPhones in favor of a cool new Nokia phone that gives it to them. And data shows that consumers would be willing to pay a $100 premium for as device to get unlimited music over its lifetime, or $7-8 a month in extra subscription charges.

To be a Punk Marketer you have to put yourself in the shoes of the consumer (however smelly they might be) and imagine what they want and need. As a starting point, assume there is no brand loyalty, even for a brand as “cool” and iconic as Apple, and that consumers are fickle and will change allegiance as fast as it takes to say, “but this ones cheaper!” Research is useful for that, but so is intuition and common sense, and Jobs is a master at understanding what will appeal to consumers emotionally without having to see proof of it. And the other thing that Apple consistently does is to set its own standards, not be governed by those of the industry. Each product they come out with doesn’t just improve on the competition, it redefines the market. Sure, the iPhone has its problems (most of of them because AT&T’s network isn’t good enough), but it has set the standard for all future mobile devices leaving all but rival Nokia, with its new N-95 phone, scrambling in the dust.

It was announced today that Crispin Porter + Bogusky won the advertising account for Microsoft’s consumer products, a piece of business with billings in excess of $300million. That is some feat and I want to be the first (alright, the 589th) to congratluate my old colleagues at the agency. They’ve come a long way since I first met them in 1997 when they were less then 100 people occupying two floors in an office tower in Coconut Grove, Florida. Not many people, even in the insular ad industry, knew of them depite the fact they’d been doing great work for a few years and even when they launched the brand Truth - still one of the best campaigns for anything anywhere - the next year they were regarded by most as a bunch of oddballs who had no place working on big mainstream brands.

Well today oddball came of age. You don’t get much more mainstream than good old Microsoft, the company that people love to hate for its size, dull-looking products and geeky persona. The big MS must have realized that to transform its image, its only hope was to completely rethink its brand and, seeing what CP+B did for companies like Burger King, they became pretty much the only choice. The runner-up for the account was Fallon, a great agency, but one that has hardly done much to add that priceless ‘cool factor’ to its clients’ brands in the last few years. What they did for BMW by creating Hollywood-quality films for the web was amazing for its bravery but, hey, that was 8 years ago now.

There are few agencies that compete with CP+B. It has almost single-handedly transformed the way advertising is defined, from a format driven discipline to something much broader and organic. The way Alex Bogusky and his creative lieutenants think about markting problems is just so markedly different from the way it works in other agencies, it just doesn’t bear comparison. Smaller agencies run by big thinking renegades have a chance to learn from CP+B and create truly media neutral, holistic campaigns, but I just don’t know how the big agencies, so used to working in the old way where media determines creative (and TV is always king), have a chance. Luckily for them there are still clients who put a premium on service above creative, and global network above big thinking, but with accounts like Microsoft handing the keys over to agencies like CP+B, I wonder for how long.