Do you invest more in people or gear?

There was a job posting over on a message list I follow, and it got me to thinking. It seems that lots of companies feel safer and more comfortable about investing in a lot of high end equipment, but then want to find people to work on spec or for very little pay or for fame. As a creator though, I have some different opinions, so I posed the question to a group of colleagues at ad:tech last week. You can listen to their opinions, then make up your own mind - and please tell me what you think!

Here's the original posting for context:

[Company X] is looking for a video engineer to manage, enhance and
operate our state-of-the-art HD multi-camera streaming video studio.
We're switched, have about 3,000 square feet of shooting space, a green
screen, etc. We need someone who wants to chart the course of what a
videoblogging/streaming studio should look be, on a beer budget.

In all fairness, beer is part of the company's culture, so you could take that last comment a couple of different ways. Feel free to leave a comment right in the video as well - you'll just have to create a quick account over at viddler.

Are You Addicted to Big Numbers?

I love math. It has an uncanny way of teasing apart the truth, but alas, it can also just as easily be used selectively to manipulate or create false impressions. And if we get addicted to a certain type of math - tracking eyeballs and households for example - then we can be inadvertently wasting time and money on our way to building brands and selling stuff.

In the old days of business, it was not possible in most cases to communicate with just the people who were a good fit for your products and services. So your agency developed campaigns for you that involved sending out millions of mailers or commercials broadcast to hundreds of thousands of households.

Typical rates of return? Less than one percent. We all know that. But those big campaign numbers are still so addicting. "I need the big numbers in order to get the rates of return to justify this expense." Well, you only want the actual end result numbers.

The point is that now with technology, new media aka podcasting or downloadable media and social networks, you can actually reach the precise people who are most likely to buy from you, on the first round. You don't have to bother interrupting or shouting at gazillions watching a mainstream TV show knowing that in there a few customers (who are probably fast-forwarding the commercials anyway...) You have other more powerful ways of having "private" conversations with your target audience instead of hoping your target finds you in the midst of all that noise.

I call it the phenomenon of having people actually self-enrolling themselves and it's one step faster and juicier than "targeting." Though there were dozens of companies here at ad:tech promising better and better targeting of audiences, wouldn't you rather be able to just show up with your stuff knowing that people had already organized themselves around a related "something"?

I have a couple of examples for you.

iPhone Users and Web Software
On Monday, the Wall Street Journal wrote about a new iPhone software:

Earlier today, we wrote about new software that lets businesses customize Web sites for visitors with iPhones. Our take: Businesses that sell to other businesses shouldn’t rush out and buy this software because iPhones only account for 0.18% of Internet traffic...

That's a really small number. 0.18%. Who wants to bother with such a small, even microscopic group of people? Well what if you knew that iPhone users as a group are high income and highly educated phone users, and as early adopters they are also trend-sensors as well as trend setters? They are the people who have the money and the intellect to detect smart moves in the marketplace and tend to have others who follow them.

Now, not every company wants to meet the smart, rich, trendy, 24-7 movers and shakers, but if you do, iPhone users have already identified themselves as such, and making your web site i-Phone-compatible is an incredibly easy way to say to them: hey you! over here. My company wants to make it easy for you to play with us.

Mainstream Media Placement or Podcast Placement?
There's a local girl band here in Hawaii, MighTyJ. During the production of their album, they set up a blog and filmed a vidcast aka video podcast with their recording engineer, Doctor Trey. When it was time to start promoting themselves, they used a combination of approaches. For one they got booked on the CBS-affiliate morning show (about 25,000 households). After that appearance, there was zero uptick on their web site traffic and no increase in downloads or subscribers to their vidcast.

Then they made an appearance on our daily Internet TV show, Beach Walks with Rox, average daily download of about 2500 or one-tenth the reported size of morning network TV. Their site traffic jumped enormously and they doubled the number of subscribers to their podcast.

So do you want to waste your time contacting 25,000 and get no response or contact 2,500 and get an enormous response?

Welcome to the new new math people. Fall in love with small numbers. Be willing to pay a higher CPM/CPA because other things (technology) and other people (podcast creators) are doing the heavy lifting for you.

HAF Members - Let’s Get the Jan 24 Party Started

I've been asked to speak at the Hawaii Advertising Federation annual "university" this coming January, 24, 2008. Since I want to evangelize about new media, I'll be using our blog to start connecting with the members as well as asking for input from others of you who have opinions and recommendations.

For the members of HAF:

• what do you love and hate about the internet and technology?
• how often do you read blogs or consume podcasts?
• do you have an iPod?
• on a scale of 1 to 10, with 1 being a technophobe/luddite and 10 being a geek, where do you rate yourself?

For the rest of you:

• what do you think of the state of advertising?
• what do you want to hear from a company, as a consumer of its products and services?
• are there do's and don'ts for companies who want to converse with their customers and potential customers?
• what's the best way to reach you and influence your buying habits?

Why the new Facebook “Endorse” Model Works for Me

Today Facebook announced that it will allow companies to create profiles inside the social networking web site. Individual users can then endorse or be "fan" of said company. Just like Facebook, independent media producers can serve as a very valuable filter for their audiences when it comes to products and services. In more crass terms, stop being ashamed of having corporate sponsorship, and duh, don't take on any sponsors whom you do not trust or support yourself. Business ethics 101. People like Chris Brogan are happy to call you out when you use the tools effectively.

What we are really enabling now is a whole new self-sustaining system whereby people who make stuff (P-producers/plafroms) attract people who like that stuff (A-audience) and can be supported by companies who want to tell us about their stuff (S-sponsors/advertisers). I presented this Player's Triangle concept at the Podcast & New Media Expo this past September and I think it is an incredibly efficient way of connecting people and building businesses.

The independent producer - be it Facebook or Meredith Medland of Living Green Podcast - gets the party started. The platform/show both have natural filtering mechanisms built in. They are built of networks of people who have organized themselves based on shared interests not irrelevant data like geography or age.

Audiences are very tired of being sold to every waking moment, and I have written before how advertising is broken. Nonetheless, they still want to connect, to be entertained, to be informed. The platforms and the independent producers are doing that, while traditional media struggles to find a place in this new world. The internet has also trained people to want things for free. I think this is partly because that was how early internet companies competed against each other and because it is relatively cheap to built an internet business. Not so easy to sustain one though.

And that is where commercial sponsors come into play. They have the budget and the desire to reach new customers. They have been trained to think a 2M audience is better than a 20K one, but that was before targeted audiences. The Long Tail as Chris Anderson elucidated, is about this revolution where meaningful and profitable transactions are taking place directly, without the radio or TV station required.

How long will it take until we never have to get an un-targeted or mass-mailed advertisement again? Well, a few generations probably, but this is a start. Who wants to be the first company to stop using mass marketing tactics and instead commit to only targeted message delivery?

I think of it as an organic circle of commerce. We find each other by shared interests and not by accident in the thousands of messages blast at us daily. I can hear the quiet coming already. And I love how this supports people like us who are creating a first-class internet tv programs that our viewers want to be free.

Will I see you Honolulu colleagues at MegaComm tomorrow?

I am speaking at MegaComm 2007: Hawaii 5.0, the combined PRSA and IABC Annual meeting on Friday, Oct 12 in Honolulu, HI. I've re-produced the conference info for you here.

I am going to try to find time to mention this case study from Robert French, among other things. Thanks to Steven E. Streight for the referral on Twitter. Leave us your comment if you have any free advice for PR and Communications experts.

Advancing the Communications Professional • Friday, October 12

This unique program is specially designed to equip communications professionals with up-to-date tools and strategies needed to effectively influence Hawaii's unique culture, employ rapidly changing technology, and transform the economy. Join us for an enriching half-day event and learn from some of the most experienced communicators in our state.

Friday Oct. 12, 2007 - 8 a.m. to 1:30 p.m.
Japanese Cultural Center of Hawaii
2454 S. Beretania Street
Honolulu, HI 96826
Google Map Link

REGISTER ONLINE NOW!

Registration and Continental Breakfast - 8 - 8:30 a.m.

Exploring the Brave New Underworld of Web 2.0 - 8:30 - 10 a.m.
Exploring the Brave New Underworld of Web 2.0. This session will cover blogging as a business communication tool, and examine the new models for today's web success. A fascinating case study on mini or mass multi-media marketing, highlighting the development of a rich website for the 2007 CD release of Israel Kamakawiwao'ole.

Steve Petranik, 24/7 - News Editor, The Honolulu Advertiser
Roxanne Darling, Bare Feet Studios
Chris Kanemura, Entheos Interactive

Cultural/Community Engagement - 10:10 - 11 a.m.
What does it mean to proactively engage communities? Why is it so important and how do you ensure you are successful? Successful community and cultural engagement can be the critical link to helping you achieving your business and communications objectives. Hear how Robbie Alm, Hawaiian Electric Company's senior vice president of public affairs, and Dawn Chang, principal of Ku'iwalu Consulting, have successfully navigated their way through this challenging arena, successfully building community support for their projects.

Robbie Alm, Senior Vice President of Public Affairs, Hawaiian Electric Company
Dawn Chang, Principal, Ku'iwalu Consulting

Employee Engagement - 11 a.m. to Noon
Internal communications is a vital tool for binding an organization, enhancing employee morale, promoting transparency and reducing attrition. Even more critical is having an efficient delivery mechanism. How do you manage and deliver internal communications efficiently and effectively? Hear how Brandt Farias, First Hawaiian Bank's vice president of marketing; Doreen Griffiths, Grant Thornton's managing office partner; and Mike Gonsalves, Hawaiian Electric Company's video specialist, champion the communication processes in their successful and vibrant organizations.

Mike Gonsalves, Video Specialist, Hawaiian Electric Company
Doreen Griffith, Managing Partner, Grant Thornton

Luncheon - Noon

Keynote Address: Convergence Media - 12:30 p.m.
Nate Smith, President, Oceanic Time Warner Cable

Welcome to the digital age, where the melding together of different media has resulted in a seismic shift in the way we view communication. Nate will share how media convergence has brought a new way of doing things and what it holds for the future.

For more information: Call 585-7931 x105 or email darcies@hawaii.rr.com or Patrick Williams at email patwill9@gmail.com

Links from Rox’s Talk at PNME

Here's the link to my talk at PNME

I am giving an overview of the many things to consider for business video podcasting - from technology to audience interaction. Hope you'll join me in Ballroom A - and there will be a DVD for sale afterwards.

CC Chapman - Social Networking Expert
Jim Kirks - The Clip Show
Viral the Show
Blip.tv
Mefedia
Revver
Sherwin Smith - MotorKultTV.com
Seth Godin - author
Richard Burns of Culture Catch
Todd Cochrane - Geek News Central and Raw Voice
Steve Garfield - Videoblog Pioneer
Spices of Life
Doug Kaye - Podcorps
Matthew Ebel - Musician
Jen Myronuk - Fireant and Odeo
Bruce Sharpe - Levelator
Joel Mark Witt - MarylandZoo.tv
Mark Rotblat of Tube Mogul
Chris Brogan - Co-founder of Podcamp
Laura Athavale Fitton - Pistachio Consulting

I'll post the presentation file later!