It’s time to round up the year in more ways than one. Our advertising agency Honesty’s first fiscal year just ended a month ago, and I’ve been treating myself to some well deserved vacation on a sailboat in the Stockholm archipelago. And for those of you who have never been here, it’s quite a place:

It has been a strange but amazing year. Definitely tough. Probably the toughest year of my life. In February 2009 I had just left McCann (been fired is probably a more accurate description actually, I was a bit of a pain). I was on the street with no job, no financial stability to speak of and, in the typical ironic style of the game of life, no voice since I had throat surgery planned for the day after I left McCann. I couldn’t even call anybody to tell them about my predicament. Probably just as well as I was pretty high on painkillers as you can see below. Nevertheless it was what one could call bad timing.

At this point all options were open. I guess I could have joined another agency, I could have left the business altogether for something else, or… I could start something of my own. But as I was laying there in the hospital bed, I made a decision. I knew the concept we had at Verymuchlogo (the agency I left) was basically right, though somewhat crude, but the project was slightly off center in the staffing since we were missing an important piece of the Ocean’s 11 team and we were lacking the right production philosophy. Now was the time to make it all perfect from the start. But it was not going to be an easy ride.

In February 2009, still with pain in my throat and strong painkillers to fight it, I filed all the papers to start the advertising agency Honesty. To this day, I still have the original sign on the door of my apartment.

Shortly thereafter I moved into Honesty’s first office located in Forsman & Bodenfors’ old office on Hötorget in Stockholm.

Here I was hanging out with amazing people like Louise Hamilton and Daniel Jouseff, ping-ponging ideas and meeting tons of people.

Great meetings were held with everything from creatives and strategists to potential financiers and clients. The office was an expensive place for only one person to pay for, but looking back, it turned out that it actually paid for itself many times over.

And it was an important time, albeit painful – being on my own like that was a quite scary experience since I had nobody but myself to rely on for basic stuff like food and rent. It was important because it forced me out on the ledge. If I would have taken the safe route, Honesty would have been dead and gone a long time ago. Instead, I spent time digging through our industry and surrounding industries, like SEO, social media consulting and business consulting, to figure out what was being done right and wrong in our industry, or put into business terms – where the inefficiencies were that could be exploited. I saw (and see) the music industry as related and wrote a lot about that too back then. Check out the walternaeslund.com blog posts from February here.

Besides doing some smaller consulting gigs to stay afloat, my persistent bloggin was starting to pay off with more readers coming in every day and public speaking gigs starting to pop up, both in Sweden and abroad. I fell in love with the stage and it’s still a great marriage!

I also helped out as a consultant where I could. One of these gigs that I’m really happy and proud to have been a part of was the “Sweden’s Most Swedish Job”-campaign that Syrup planned for during the spring and executed in the summer. It was an awesome campaign, not least PR-wise, where we sent around a guy all over Sweden to rediscover the country and stay at STF’s (the client’s) hostels.

It was also an opportunity for me to work with the fantastic Henrik Frenne who is, by the way, a one-man-agency in himself. (Grab him if you can afford him).

My lifestyle at this point was anything but luxurious. All my money went to my expensive office and pitch projects and living expenses. There was one exception however: Our oyster Thursdays. Here me and my friends met up for oysters and discussed life. These Thursdays did chip away on my lean budget, but still I really think they helped keep me sane.

Around this time we started to throwing the epic Daniel & Walter-parties at the Stockholm club Collage. At least we thought they were epic. We always had a great dinner at the club before firing up the turntables and partying until 2-ish. Also a great way to keep my spirits and creativity up (we had a new theme every week).

Summer came. In many ways this was a huge frustration. The ad business slowed down and went into vacation state. All I wanted to do was work, but things around me were slow. Looking back I can see that this was actually really good. I fixed up my apartment and read up on a lot of stuff that I didn’t have time for before, like evolutionary psychology and the psychology of attraction, themes that are now at the core of my lecturing and overall strategy.

In September I wrote a blog post that exploded like a bomb. The post was about Forsman & Bodenfors’ campaign for The Church of Sweden and was intended as a clear and good example to show what happens when you design for man as man was fifteen years ago, in the pre-Google era, rather than designing for man as man is today, including the augmentation of the mind that search engines provide. Over the course of that week, my blog traffic doubled, tripled and quadroupled before hitting the Swedish advertising press in the form of an article in Resumé. At most I had six times my ordinary traffic on the blog going to that particular article. A week later I wrote about Lowe Brindfors’ new site, just to show that it is really not a Forsman & Bodenfors problem but an industry problem. Agencies need to get on the bus and design for man as man is today! During those two weeks, we had tons of traffic to the agency site as well, with all the big agencies topping our visitor charts. That week several of the biggest agencies where out searching for SEO-experts to hire. Ironically, we ended up on the top list of SEO-consultancies only some weeks later. The question I always get asked is whether the posts were a PR-trick or not, and my answer is: not really. I just told things as they were. Including screen shots. Sometimes a simple truth carries a long way.

Later that fall all the remaining 5 partners in the planned Ocean’s 11 team had signed on to the project, had gotten on board and received their shares. By October we were up and running. The old place was now way small and we moved into Honesty office #2 in Hornstull.

We were pitching small stuff and bigger stuff and were on a winning streak. To date we have withdrawn from two pitches and won the rest. Such an amazing payoff for all this hard work.

One of the ones we withdrew from was for, wait for it, the presidential campaign in the Philippines. That’s one you don’t do every day. This amazing ride was a great adventure including a week long very intense trip to Manila.

Instead we got to work on a dream project with one of my favorite designers Stefan Sagmeister and went over to New York to meet up and do workshops.

I’ve been a fan of his work on stuff for everything from superstars like Lou Reed and The Rolling Stones to small fun projects for a long time and also felt much appreciation for his philosophy and view on life. You can check him out speaking at TED.com here:

As a bonus, I also discovered and fell in love with Ace Hotel in New York. Fantastic place and a place I keep coming back to.

Things were starting to pick up speed now at Honesty. We added two employees to the staff, one art director and one account manager, and some freelancers and just pushed on full speed ahead. Before long we had outgrown Honesty office #2 as well.

By now we had won the accounts for Halebop and Stena Metall along with a bunch of other smaller accounts, and moved into our present space near Mariatorget: Honesty office #3.

This was a perfect stop for us where we could regroup and search for a perfect space without being too crammed. We have a couple of ideas for where our next space Honesty office #4 should be but haven’t quite decided yet.

Our first fiscal year, which was actually a year and a half, was closed on the last of June. Most of our real business has taken place from February, and that was an important lesson: it takes some time to start an advertising agency from scratch without financing. But when I got those books in my lap I was real proud, of myself, of my partners, and of everybody else who have made this happen. It’s just f*#!n cool that we could make it happen.

Before summer started I bought a piano. I was worth it. That’s where I sit down when I come home from work to clear my head before writing to you. It’s been an amazing year and an amazing ride. If you ever get the chance to do something like this, then do it! And if you don’t get a chance like that, make one.

When I got fired I called my mentor Magnus to tell him the news (well… I couldn’t talk remember, so i mumbled and whispered). I remember very clearly his reaction: “Walter – that’s GREAT news! It’s probably the best thing that has happened to you since puberty!”.

I guess he was right.

Have a great day!

Man that was tough. I’ve been lucky to have been scheduled in the first slot of the day at most talks I’ve done so far, but today I got the very last slot. And it was crazy hot in Olympia’s Pillar Hall in London where my Marketing Week talk was scheduled. Some talks are easier than others, and this was definitely not one of the easy ones.

Anyway, the theme of the day was to take advantage of the evolutionary gap. Right now, that gap is very present in marketing when it comes to search marketing and advanced metrics. You can still win advertising awards without neither relevance in terms of actually selling product (Clownvertising) or even the most basic search marketing considerations. We’ve seen examples of both over the past year.

This does of course present an opportunity for those who stay ahead and work with the tools that are actually out there; and this opportunity is represented by precisely the evolutionary gap between what is currently being applauded by the majority and what is possible to imagine when you grab your backpack and your walking stick and actually set out to explore the boundaries. One can’t help but wonder if awards given out by a majority vote are even a compliment in times of rapid change.

Anyway, despite the tough venue and the courageous overheated heroes in the audience, visiting London was fun. And despite being pretty darn tired, I’m looking forward to seeing you Londoners again soon!

Cheers!

Super happy to announce that I will be speaking at Marketing Week Live at Grand Hall Olympia in London next week June 29. Amazing gig that I’m really looking forward to. For some reason I’ve never had a chance to speak in England. I hope we have the same sense of humor.

The topic of the day will be the same one that I wrote about here a little while back: “Brush Your Teeth and Design for The Google Man”. I guess they liked the title. But on a more serious note I really think that a mindset where we’re lookin at online as part of our ordinary evolution, like fingers, teeth or motorcycles, is key to success in times of change. Not just in our business. This mindset makes us quick. It makes us smart. It makes us efficient. Really looking forward to the discussions after the talk. That’s where I learn. There are always tons of smart people at this type of event.

So if you’re in London on the 29th, I hope you can swing by and say hi! Looking forward to seeing you!

The human body. Such a marvel of engineering. We can do amazing stuff with this machine, things that are many times EXTREMELY difficult to mimic with any machine. If you only consider using the body as a physical tool we are amazing when it comes to detailed movement and interaction, walking upright och playing basketball. And that would probably be classified as the easy stuff.

But the body also has it’s limitations. Seemingly simple tasks like cutting a metal wire fall outside our capabilities. Or DID, I should say, because we have now evolved to a stage where we can easily cut metal wires, even if this part of the evolution happened outside our bodies. But if you look at technology this way, a Leatherman Wave or any other piece of technology is most definitely part of human evolution, and therefore part of the modern man (or woman). Just like a modern programming language, nature has just abstracted evolution to let late stage of evolution the Leatherman Wave build upon an earlier stage – the human intellect.

In our everyday life we rarely reflect over separation between technology and man. If somebody told you to build a freeway, you would instinctively build it for man the way man is today. Including late stage evolution such as motorbikes. You wouldn’t build a freeway to be used on foot at speeds around 20km/h would you?

Still we do this all the time when it comes to creating communication and designing web sites. We do it for what man was 20 years ago. Not the way man is today. 20 years ago, web search engines did not exist in the life of ordinary people. Google did not exist. SEO was unheard of.

Just like with the body, the human mind is extraordinary when it does what it does best – in the case of the mind, this is stuff like interpretation, emotion and flexibility. But it is extraordinarily bad when it comes to massive memory storage and running algorithms. And since the web filled the memory void (with MASSIVE MASSIVE memory storage), we desperately need powerful algorithm processing to sort and search through all this massive information. The master of the search algorithm at the moment is Google. And just like in the case of the motorcycle or the Leatherman Wave, Google is part of man (or woman). It’s not a separate entity of it’s own with it’s own purpose or origin. It’s made by man for man, not in symbiosis, but in integration. Google is part of humanity.

It’s time for us to do what we do when designing freeways, to start designing for man the way man is today. Not the way man was 20 years ago. The world is no longer a smörgåsbord where we have preselected information layed out in a beautiful art directed magazine spreads, but a world with vast seas of interrelated data, impossible to navigate for a lone human mind. In this world, powerful algorithm processor extensions of our mind are absolutely necessary for us to be able to navigate. Human beings are flexible, and quickly pick up on these extensions of course. We use Google without thinking twice about it. It’s time for us communicators to do the same when communicating with these people.

Designing for man the way man is today should be, has to be, and will be as natural as brushing your teeth. With a toothbrush that is.

Money is important to us. Control over our life situation is too. But then, how can we possibly accept Internet banks as they are today. How can we possibly think that it’s okay to, say, not be able to get a visual overview analysis of our expenses and incomes? How can we possibly put up with the long and complicated OCR-numbers or basic search functionality? And how is it possible that we have such user hostile login procedures?

I can’t present all my ideas for my perfect Internet banking experience in just one post, but I can show you three examples of what Internet banking would look like if I had my say, and also what I think it will look like in just a couple of years. Here we go!

Facebook Secure Connect

Logging in to your Internet bank today is more or less of a hassle depending on your particular bank, but it’s nevertheless a hassle. Banks have been lagging behind the times here, focusing on security, but not on usability. The market forces will inevitably push us closer to an optimal trade off between security and usability. We see people leaving their bank today, simply because the login security solution is too complex (using USB-hardware for example).

To creatively solve this problem outside identification providers will step in. On of those will be Facebook. Our online identity is contained in our Facebook accounts, our Google Profiles, Twitter accounts and other services that we haven’t even learned the names of yet. We have come to trust them for logging in to other services now, and since more advanced transactions are taking place using this login by the minute (buying major chunks of advertising for example), a need for more secure identification procedures will arise. A second version of Facebook Connect called Facebook Secure Connect will be launched using secure authorization technology and will eventually be adopted by the banks. One bank will lead this evolution and the others will be both inspired and forced to follow.

Facebook will lead the way in this development, but Google will be quick to follow. To compete with Facebook, Google will go on a marketing rampage for secure OpenID and couple with Google Budget Analytics:

Google Budget Analytics

The amount of control you have over your budget and cash flow today at your ordinary Internet bank is really a joke. You get a list of your transactions and not much else. Besides that, it’s also really messy to go back and check out your history. My own bank has recently made it possible to export to Excel XLS-format, but give me a break – XLS? In 2010?

Instead, when you log in to your bank using secure OpenID all transactions will automatically be indexed, fully searchable and categorized. You will be able to analyze your economy at all levels from the very basic (cigarettes, food, rent) to the very advanced with cluster analysis, seasonal trends, forecasts and goal tracking.

In step two, Google will also launch Google Budget Analytics For Business where you can do your books and account distributions more or less automatically. This will kick ass for small businesses.

Facebook’s reply to this will be to enable sharing services where you can share selected transactions and events in your feed, much like what Blippy does today. Come to think of it, Facebook will probably buy Blippy.

Open Banking API

Finally, banks will realize that they are best at doing what banks do, and will hand over interface design and function to the experts. Banks will release secure API-sets to allow third party specialized internet bank companies to connect to their systems. This will in turn open up the market for hardcore competition. Google will be way ahead already and will release Google Bank which will be an big expansion of Google Budget Analytics. Here, they will also have tight integration with Google Spreadsheets, and will also allow for seamless integration with Google Chat, Google Voice and Gmail for interacting with your bank’s customer service.

And what about Apple – the self proclaimed customer experience rulers of the universe? They won’t remain on the sidelines for long.

Man, I wish I had the cash to go into this one myself. Call me if you know any investors who would like to change the world with me on this one.

Update: Interesting link about the poor quality of internet banking (in Swedish).

I love to theorize about social behavior and how it relates to our behavior on the internet. But sometimes I get the urge to be just a little more practical about things. How can we actually use all this theory? Before we dig into what I call The Hang Glider Theory, let’s gossip a little.

The Anatomy of Gossip

It seems reasonable to me that gossip evolved as a tool to manage coordination of larger societies. It was a way to trade the social currency called reputation. Reputation, in turn, was a way to govern collaboration between individuals where you neither had a close enough common interest in genetic propagation, nor first hand knowledge of the individual’s contribution or withdrawal from the common pool of value (stash of nuts, Mammoth meat, whatever), nor a strong enough reason to hurt or kill the individual in question. Gossip was a more granular way to control behavior so that it wouldn’t become abusive. Killing individuals for stealing a banana makes society somewhat unstable, but so does letting banana theft run wild, right? Gossip and reputation worked really well here as a way to make societies more stable, to enable rudimentary trade over time and distances, and support larger scale collaboration in general. Societies using this tool prevailed and individuals mastering social behavior thrived. If this wasn’t true, we wouldn’t be doing what we are doing today. Apparently, those who stayed behind in their caves and didn’t interact perished. Maybe somebody should tell this to marketing execs who don’t think they need to engage in social media.

Positive and Negative Gossip

If this is how gossip evolved, one can imagine why negative gossip is so much more common than positive gossip. It was more valuable to know who not to trust than knowing who to trust, simply because it was more expensive to be ripped off or killed than to miss out on the benefit some good social interaction. This could explain our approach anxiety and also why our reflexes for spotting danger is so much quicker than the mental process of spotting something good.

To this day, negative gossip dominates. Even though I can’t show you any conclusive evidence, I think we know it intuitively from our everyday lives. Just look at a rack of gossip porn… sorry gossip magazines.

Gossip and Brands

This is also true for brands. It’s so much easier to go viral on some negative spin than on some positive one. There are tons of examples, the “Disgusting Domino’s Pizza Clip” being only one.

But wait a minute – if this is built in to our minds from thousands of years of evolution, and the internet makes this kind of gossip ultra efficient, will this not happen to us all the time? Yes, my dear Watson, it will. And for that reason, strategies to handle it will have to be part of our management models, but also part of our strategic communications thinking.

How to build it into our management models is crucially important, and includes things like corporate guidelines, empowerment of employees, etc. It is outside the scope of today’s post, but I promise discuss it further some other day.

Instead, today, I’ll propose a model for building it into our strategic thinking. I call it The Hang Glider Theory:

The Hang Glider Theory

If the domination of negative gossip is human nature, then we have a downward gravity of gossip on our scale from attraction to repulsion. So what if we could do what hang gliders do and use this force of gravity to gain speed and create lift again? To nurture warm upwinds and gain even more lift, eventually ending up turning negative momentum to positive lift?

What EA-Games did to handle a bug i their Tiger Woods ’08 game is an old but clear example of this strategy. The bug was that you could walk out on water in the game, which created quite a bit of buzz in the gaming community. But instead of doing something boring, like fixing the bug, or just keeping quite, EA put on their hang glider and used the momentum. This it what they came up with:

Now, I’m not saying that creating a funny film will solve your problem, make sure you hear me now. For Domino’s for example, that would probably have been disastrous. But this film is a clear example of the theory at work.

But even for the Domino’s case much could have been done. Cool campaigns could have been created for recruiting 2 new employees (implying that there were in fact only 2 people involved), or you could have taken these two individuals in to help out with improving working conditions at Domino’s (they were obviously the two most dissatisfied employees in the country), or you could have turned the restaurant in question into an institute for food freshness and employee care, making the incident a turn around symbol. Or whatever. Just not this:

…which is boring, and guilty sounding. It’s also very similar to the “a few bad apples”-defense used in the Abu Ghraib trials. It sounds like you throw out and indict two employees without changing anything in the system, thus leading us to wonder if there aren’t a thousand others just like them out there, being just as dissatisfied and disloyal, only waiting to sneeze on my mozzarella sandwich.

So – this is The Hang Glider Theory. Try it out. Tell me what you think of it. Have fun!

Contrasts are what make life interesting. Yesterday I woke up here:

…from the sound of sheep walking around outside my tent. Today I woke up and threw myself into a cab to Arlanda to fly off to Oslo and Strömstad for the Bring Dialogue Conference ’09.

When I got here I realized I’d be staying here:

…at the luxury spa resort in Strömstad. Slightly different from camping – haha! It’s actually even nicer than what the picture shows.

But conferences are all about the people. The people at Social Web Camp were the elite of social media – almost like Sweden’s own R&D-department of digital communication. Here we have a similiar number of people from the business elite (at least from what I can tell so far). Probably as smart, as passionate, and as creative, but in slightly different fields. Also, we have some amazing speakers like Kjell A. Nordström, Micael Dahlén, Magnus Lindqvist, and Jan Bylund. Only to name a few. (Note that all but one are striking the same knuckles-in-chin-pose).

And then I haven’t even begun talking about the shellfish buffet that is planned on Koster for tommorow night.

Those of you who attended my session at the Social Web Camp got to see a preview of the talk I’m doing here. Stay tuned for Slideshare presentation that will be posted shortly. I’ll be discussing the evolution of gossip, good, and evil, draw parallels to social media, and also present thoughts on strategy for approaching this new breakdown of brand privacy.

See you soon!

One of the most dangerous politicians in the United States – that’s what CNET calls Obama’s Vice President Joe Biden. What they are talking about is Biden’s relentless attacks on internet liberty, and the threat that he thereby poses to the evolution of technology. Now that the dust has settled and we have sobered up after celebrating the Obama victory, the Biden threat has become very real. Among other things, he has backed proposals like outlawing region free DVD-players, forcing internet providers to hunt “pirates”, legalizing the entertainment industry’s use of spyware and trojans, and, not least, having the state finance the film industry’s court costs when sueing file sharing teenagers(!).

I would love to say that this gives us Swedes a competitive advantage as a nation, but the problem is that internet innovation is collaborative and spans the entire world. If one nation pours gravel in the machinery, everybody suffers. Especially if that nation is the world’s leading internet nation.

On the positive side, these repressive policies always lead to rebellion and creativity. Philip Zimmermann’s wildly successful PGP-encryption was for example created to protect private communication from a law proposed by none other that Joe Biden himself. PGP is known to have helped dissidents in oppressed nations communicate freely, but also to have put terrorist communication in stealth mode. Funny what a little oppression can lead to. My guess is that we’ll now go into innovation mode again and figure out some really sophisticated stealth file sharing technology. But really, I’d much rather see that we humans would innovate to make the world a better place than to fight oppression. It feels more constructive somehow. Innovation to avoid legislation has a treadmill ring to it.

Im out in the sailboat reading a couple of newspapers from yesterday and the day before. A couple of different articles caught my eye. One of them is by Thomas E Patterson, media researcher at Harvard university. In the article, he talks about the future of the newspapers, or rather the production of news in general. Print media is in a crisis, more so in the US than in Sweden, but it is only a matter of time before we have the same situation here. One of his points is that quality news reporting is produced by the newspapers, and thus the newspaper crisis is really a crisis not so much for the papers but for the production of news in general and ultimately for our democracy.

Well – perhaps. But something tells me that a world of information liberty and low cost for production and distribution should tell a different story than that of LESS quality information. From a birds eye perspective it just doesn’t make sense that removing the need for expensive equipment and institutional organization should lower quality of the output. What WOULD have this effect is if the demand for such quality information is really much lower than what we have believed earlier, and that people have just read quality news because it was the only product available. If this is the case, lower quality news reporting will be the inevitable outcome. It’s just evolution. But I find that hard to believe. Sure, perhaps we’ll have a period of bad news reporting, people taking advantage of this, causing for example democracy trouble, but as long as we keep the internet free and uncensored, this pendulum will swing back. It always does. Sometimes violently. Let’s hope that this will not be the case, but I think the real danger isn’t the death of an outdated business model, but legislation threatening internet liberty, such as the the Swedish FRA- and IPRED-laws and the French HADOPI variety.

In about an hour we will know the verdict in the Pirate Bay-trials. Let’s hope that people are being smart about this. Because a guilty verdict would not be good for anyone. Especially not for art and artists.

A guilty verdict would do little to boost sales. I believe we’ll see the opposite result. Darknets and stealth services (like Pirate Bay’s own would evolve quickly. Innovation incentives in the legal realm would be smaller. We would do little but slowing down inevitable change. From a wider perspective, it is just not intelligent.

If they are found not guilty however, it will be considered a future oriented statement. One that would benefit artists, culture, our country, and eventually the world. The music industry will have to come up with something better and more useful than Pirate Bay, and to be honest, they already have. Though Spotify would perhaps need some healthy competition. Spotify is just one small step, but it is a step in the right direction. This type of evolution is where we are going. A guilty verdict would just make us look dumb. Especially in the history books.

From the angle of the artist, nobody has put it better than Paulo Coelho:
“I didn’t start writing to get rich, I started writing to get read”.