TBWA Europe’s Vice President Innovation Petteri Kilpinen has written a great book. In Finnish. So we asked him to translate the best bits. Get set for The New Gold Rush in six highlights.
1. The golden age of media
The media revolution we’re experiencing right now is so incredible that in 50 years time, people will wish they’d been here. That’s why I compare it to the California gold rush – a time of excitement and opportunity. From social media to smart phones, digital is utterly transforming our lives. In places like Tunisia and Egypt, it has given a voice to those who were powerless. We are witnessing the forced birth of increased transparency among governments and corporations.
2. Richer, faster, easier
Panning for a gold was a long, painstaking process. But today’s digital entrepreneurs can build businesses that might grow in value from thousands of dollars to billions in less than a year. It has never been easier to create or attract value than it is now: what used to take decades is now achievable in only a few months. And the founders of Google and Facebook don’t look as if they come from another world. They’re young guys who had a good idea. If we find that nugget of gold, we could be like them.
3. Globalisation for all
The concept of globalisation sounds all-embracing, but it fact it was the domain of a few giant companies. Since the internet, globalisation is open to everyone. Not only is it cheaper to make your ideas a reality, but it is also cheaper to promote them worldwide. Connectivity will also cause the death of what I call “regional thinking”. Instead of joining forces with our geographic neighbours, we will join forces with those who are more like us. For example, Finland has more in common with New Zealand than it does with France.
4. Knowledge for all, too
If knowledge is power, today power definitely belongs to the people. Thanks to Google and the other search engines, almost everyone has access to limitless knowledge at the click of a mouse. Mobile devices are accelerating this change. Right now there are about 400 million smart phones. In two years time there will be two billion. That means access to an infinite library, anytime, anywhere.
5. PC R.I.P.
Watching television in the traditional sense is beginning to seem pretty old-fashioned. It won’t be long before our TV screens are also our windows on the internet. In fact, I believe that the middle-sized screen – the PC – will gradually disappear from domestic environments. We’ll consume digital media either on big screens at home, or on small screens on the move.
6. Mass brands get personal
Mass communication is not a thing of the past – but it’s no longer the only game in town. Even brands with mass appeal can now build fan bases via Facebook and other social media. Pretty soon, they’ll be able to tailor products and services to specific fans, forging individual relationships. Dialogue with users and a deeper knowledge of peer groups offers rich terrain for a new, improved version of CRM. Consider the example of Skittles in the UK, which has three million fans, enabling it to engage with a mass audience in a non-mass environment.
Editor’s note: We couldn’t let Petteri plug his book without answering a few questions, so we asked him some.
Q. What does all this mean for advertising agencies?
As my colleagues put it during a recent conference, it’s the end of storytelling and the beginning of story building. We’re creating properties that people can play with, explore, extend – even redecorate, if you like. Once we understand our job in those terms, everything becomes clear.
Q. We experienced a gold rush before – the dot com boom of 1999/2000. The gold turned out to be fake. What’s different?
The dot com boom was created by financiers and the stock market. Consumers thought it all sounded pretty neat, but most of them didn’t really understand it, so adoption was too low. The social media revolution is being driven by consumers. Facebook will soon have more members than there are people in China. Even if it turns out to be overvalued, it’s not going away. This revolution is unstoppable.
Q. I get it. So how can I mine gold from social media?
It’s all about CRM. In the old days, CRM was probably the most boring aspect of marketing. It was about gathering data, putting people in boxes and then sending them messages they didn’t want to receive. But on Facebook, customers actually seek interaction with brands. It has become the greatest CRM tool in history. Because of it, CRM has become creative. In fact, CRM is now the sexiest aspect of marketing.
Petteri Kilpinen is Vice President Innovation, TBWA\Europe and heads the TBWA Group in Finland
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