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Incentive

What the World Will Look Like in 25 Years

by Walter Naeslund on September 1, 2009

When I went to ad-school I felt that the school was in many respects molding people into replicas of what ad-people were supposed to be. Now I feel that this is perhaps about to change. The other day I got interview questions from Hyper Island regarding digital trends, and today I got another question from Berghs School of Communication regarding “what the world will look like in 25 years“. And despite the fact that a question like that is hopeless in terms of giving the correct answer, I can try to provide some humble thoughts on the subject.

First, the world will be what we make it
. That may sound like an empty phrase, but it’s really quite the opposite. It is a way of living, of working, of acting, and of thinking. If you live by this belief, make decisions and take action, this will not be an empty phrase, but the best estimate of the future that we can produce.

But aside from this answer, I will try to give you an answer to your question that is a little more pragmatic. Looking at what communications will look like in 25 years we can try on two scenarios.

In scenario 1 we make the internet asymmetrical. We let legislation rule what can and cannot be sent across the internet. Material which is not permitted (like “pirated” information for example) will move underground and will be sent using stealth technology. Much of the information flow of the internet will be encrypted jibberish, undecipherable for any sense-making technology wanting to make use of it and invisible to human senses that could otherwise have been used for collaborative sense-making and coordinated collective intelligence.

The goals of those wanting to control certain information based on their nostalgia of the times when they had a lucrative monopoly on distribution will not be reached because of ever improving speed and convenience of stealth technology. Instead, the huge resources that will be put into creating these technologies (love of music for instance is a powerful incentive) will be of great benefit to those who have truly evil intentions but smaller resources, notably terrorists and criminals. Since the only way of stopping “piracy” will be to do so at the infrastructure level (service providers can be real and effective gatekeepers!) this is where we’ll eventually end up, banning encrypted traffic altogether. And presto! The internet as we know it is destroyed.

Also in this asymmetrical scenario, we will start charging for the use of bandwidth. Me, being a strong believer in free markets and competition, opposing this kind of asymmetrical access to the internet based on resources may sound incongruent, but it really isn’t. Much in the same way roads and  equality to the law are the basis for efficient competition (imagine the transaction costs of paying different prices for different levels of use of different roads), I think that access to the internet should be considered public infrastructure that will benefit competition, production, innovation, and market efficiency. But in the asymmetrical scenario, this will not be true anymore, and instead old business models and old distribution monopolies can be recreated by content companies using their funds to squat certain infrastructure lines and only provide access to their content through these. This may perhaps sound fair, but what will happen is that the abundance paradigm of the internet, the free flow of information, the “to each according to his ability” (the reverse of the famously Marxist slogan), and the rise of man through collective intelligence will stop.

I’m an optimist. I don’t think that this will happen.

In scenario 2 we retain the symmetry of the internet. We treat it like infrastructure in place to make markets and information flow efficient. Like a great system of streets and water pipes. In this scenario innovation will flourish because we can all do what we have always done, build on each others innovations, but we can do it with unprecedented efficiency. We can try and fail to a very low cost, we can learn from the mistakes of others, which boosts human efficiency enormously. This increase in efficiency, just like earlier technology leaps such as industrial farming, will create vast amounts of cognitive surplus that we can use for further innovation and production. Note that even resources that seem to be wasted on chatting with friends and Twittering create value in the form of information coordination and add to the collective intelligence. We can learn how people talk, we can cluster information, we can find new synergies and draw new conclusions.

Gossip will become hugely more efficient in this transparent world of efficient communication. This will lead to vengeance and gratitude being distributed with much more precision in answer to bad or good behavior and will make us all behave better and cheat less.

Digitally replicable products will not be products, they will be marketing for products where there is still tension between supply and demand. Musicians will try to get their music redistributed as quickly and widely as possible in order to fill venues and cut deals with brands, authors will do the same with their audiobooks to get speaking opportunities and sell hardcovers, filmmakers will use their films as vehicles for brand building and profit off of their brand, while also providing vehicles for other brands. Ludicrous legislation regarding this will be laughed at in 25 years. So will the crude methods of product placement of our age. The cinema experience cannot be pirated and we will see huge product development in terms of widening this experience. Their temporary monopoly on the film itself has made them lazy in this respect.

There will not be a difference between our digital identity and our physical one. All interaction with us will be permission based, and we will grant permission to those that we like and receive value from. Interuption marketing will be long since dead. The notion of publicly reachable phone numbers and email adresses will be laughed at as cute relics of the past. Our identity will be our identity and we will call people, not numbers, by whatever means is most efficient at the time, voice, video, text, images. By default our precense in the digital and analogue world will be publicly available. The benefits of this will outweigh the drawbacks. At times we will switch this off, just like we close the door when we want to sleep.

The semantic web will be obvious, and we’ll look back at how the internet was and smile at how we had so many copies of everything and how inefficient everything was. Of course each object will only be available in one absolute, so that any update will only have to be done once. Of course each of these will contain data representations fit for each semantic understanding of that particular data. We will be able to search, deploy scripts to ask questions and make calculations, and switch between real time representations and the historic dimension. This will all be very intuitive.

Since you are asking me to describe what the world will look like in 25 years, it is a bit ambitious to think that one blog post will answer it all, but these are some ideas of how things will be. If that’s what we decide to make them into. Because still, I think that my first answer is the best one – the world will be what we make it.

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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”.

Read more: 
Here, here, here, here, here, here, here, and here.

Or if you don’t feel like reading, listen to this interview with Mr Coelho:

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We are now starting to see the effects of the Swedish IPRED-law, which states that copyright holders can go after individuals downloading protected content. Apparently, Swedish internet traffic has now dropped by nearly half. And since when is that a good thing? I thought traffic was valuable?

I believe that you can never be quite certain when you make predictions about the future, but in this case I think that the case is quite clear, and that we can now see the evidence emerging.

But first off, I want to be very clear that I am on the side of artists and other creators of value. I have strong opinions about this subject, but they are all about realism. Not about anarchism.

What the IPRED-law is doing is to protect an outdated business model for music, motion pictures, and other content. It’s implementation will remove incentives for product- and business model development like for example Spotify.

What’s worse, however, is that it directs valuable resources to evil forces, such as terrorists and criminals. Why? Well, a lot of people care about music and film. Much more people, in fact, than are criminals and terrorists. And thus there is a broad base for recruiting creatives to help keep music, film and other content free. If we go after file sharing individuals using the IPRED-law, there will be strong incentives to develop stealth file sharing software, and a large and powerful community engaging in it. We will quickly see increasingly sofisticated software of this type appearing and being deployed. With file sharing, we’ll be back to where we started, but criminals and terrorists will have brand new fast stealth tools which they would never have had the resources to develop themselves. And even if this if perhaps an exagerrated fear (there is after all already great stealth services out there, as well as bad guys using them), it clearly shows that this law will be completely useless very soon because of people learning to use these stealth services.

And what about open wireless networks? Will they all disappear now? That will not make brands trying to utilize IPRED very popular, and will actually damage the country’s progress towards connectedness. Read on.

Because another angle is the branding angle. And here it becomes very interesting when opening todays newspaper DN (unfortunately not linkable yet). In one article you can read about how people are boycotting the film- and music industries. Here are some examples of quotes from the public cited in the article:

“I’m completely going to boycott the music- and film industry now. Earlier, I’ve spent an average of 1000kr (ca $100) per month on cinema, DVDs, concerts and CDs. That will now end. All this will be cancelled”.

Or this one from a middle age person:

“I’ve never file shared in my life, but now I have to if only to show them that they can’t scare us. Let’s fight to protect our last rights. I have just downloaded file sharing software and figured out how it works. This will be fun”.

Or this interesting one:

“Let’s demand a seal for artists entirely without association with the major labels”. Now wouldn’t that be interesting.

Like I wrote the other day, we can already see smart companies, like Viasat for example, taking advantage of this, publicly promising NEVER to have anything to do with the IPRED-law, and thereby end up in the same future oriented category as for example Spotify.

If I were a copyright holder today I would think once, twice, and three times before even thinking about using this law. It may very well cost you your brand.

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Our Give Hope Campaign Valued at 3 000 000 SEK.

by Walter Naeslund on February 17, 2009

Very proud to see how the campaign I did for The Swedish Childhood Foundation with Superstrikers and Identity Works has taken off and is creating its own media space with an estimated value of 3 000 000 SEK.

Read more about it here.

We didn’t quite know what kind of effect we could expect from the psychological incentives we introduced, but can now see the results. I’m no longer working for Identity Works (where the ownership of the project remains), but certainly feel that this campaign is ready for a new phase.

Check out the campaign here.

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The prosumer revolution is no joke. And it has been brought about by different factors. One, obviously, is the ease of publishing and distribution along with its the radical drop in cost. Another is the set of psychological incentives activated by social media. And yet another is the dramatic democratization of production equipment, which is what I would like you to consider in this following example. Because while prices drop on professional media production equipment, the consumer models are becoming so good that the singulatiry where equipment is no longer a barrier of entry is near.

Consider this example. In this article, a $40,000 Hasselblad camera and Phase One 39 Megapixel back (pretty much the top of the line in digital photography) is compared side by side with a $500 Canon G10 point and shoot digital pocket camera.

Canon PowerShot G10

And the results are staggering. Sure, I don’t mean that the G10 would suffice for any situation, but just the fact that they are so close in this test that the best person in the test group could only get 60% right answers when comparing prints from the two cameras should raise some questions. They might as well have flipped a coin.

I think I’ll head down to the camera store and buy a G10 today.

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If Tony Robbins Was A Planner

by Walter Naeslund on October 23, 2008

Some things are just so basic. So obvious. And yet, we sometimes seem to forget about them. In the world of advertising we are often up to our ears in cool designers, focus groups, and media choices that we forget the most basic aspect – human psychology. What makes us do what we do? I read a lot. Books on a wide pallette of subjects ranging from technology, through fiction, philosophy, and psychology. And I see the same patterns repeating themselves. No matter if the book talks about history, persuation, self improvement, pick-up artists, or eastern philosophy, they all come down to the human mind and the incentives that motivates the human mind to make decisions and act. The rest is branding. With the right mix of incentives, you can achieve reach and action, and ultimately an ascending bottom line. And that’s the business we are in. Our job is to negotiate a fruitful relationship between the brand and the co-producing consumer (the prosumer). And in that sense we are more like marriage counselers than anything else. Come to think of it, my pitch is not that different from that of Tony Robbins. I dress better though.

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Is Social Media Scaring The Pants Off Planners?

by Walter Naeslund on October 14, 2008

Every once in a while you read blogs from ad people (mostly planners) where they question whether agencies can ever succeed in social media. The most pessimistic ones in the discussion refer to the lack of successful examples in the past. And sure, you could say that there aren’t many, even though there are definitely more than one (Nike+ being the one most often referred to).

But you could also say that there are infinitely many – they just don’t surface in Cannes or Guldägget because successful social or viral campaigns aren’t necessarily visible. Read the full article →

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Is Social Media Scaring The Pants Off Planners?

by Walter Naeslund on October 6, 2008

Every once in a while you read blogs from ad people (mostly planners) where they question whether agencies can ever succeed in social media. The most pessimistic ones in the discussion refer to the lack of successful examples in the past. And sure, you could say that there aren’t many, even though there are definitely more than one (Nike+ being the one most often referred to).

But you could also say that there are infinitely many – they just don’t surface in Cannes or Guldägget because successful social or viral campaigns aren’t necessarily visible.

One of these writers referred to a quote from The Big Kahuna: “As soon as you lay your hands on a conversation, to steer it, it’s not a conversation anymore. It’s a pitch.” But who said anything about steering conversations? What about being the subject of conversations instead? Or being the facilitator of conversation?

Back in the day, word of mouth used to be the main channel of communication. But then we got mass media, and suddenly we stopped listening, just because we had a loud enough speaker system. We couldn’t steer the conversation perhaps, but we could drown the conversation by speaking loudly.

Then along came social media. People got their voice back, and with an unprecedented efficiency. We are back to where we started. Word of mouth is back. Along with posts, comments, tweets and reviews. Can we steer the conversation? Hell no. But we can be interesting. We can offer incentives in the form of emotional payoffs, humor, utility, and exclusiveness. And more. If you stay tuned.

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Good artists borrow, great artist steal, right? Why put all this effort, strategically and creatively, into putting out new campaigns when you can just steal an old one? Stealing the ones that are tested and proven is just so much cheaper! And they work! Most of the customers out there are not pathological followers of Ads of The World and will never notice.

I truly believe that you could start an agency, let’s call it The CopyCat Agency, with basically no creative talent more than the ability to match up brand and campaign. You would make a ton of cash. You would (apparently) win contests, and you would have the best possible strategy for competing in emerging markets such as China. And even though we haven’t seen that exact agency name yet, there are agencies like that already, at least creative teams specializing in carbon paper magic.

So why don’t we do this? Well – there is really no reason. Except that all advertising would eventually look the same, and that we would have no creative people working with advertising anymore.

So we need to create a short term incentive not to steal in order to solve the long term problem. And personally, I think THIS is the true purpose of contests. Contests should provide the short term incentive to create something truly new and unique. Unfortunately, they don’t. Take a moment to go through recent contest winners and see for yourself.

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Is The Brand of Green Going Stale?

by Walter Naeslund on April 28, 2008

There is not much left in the world that is not green, organic, and sustainable. If I want to be evil and don’t care for mother Earth, I’m really stuck with a pitiful selection of Earth-abusing stuff. When I was in New York the other week the apple was really greener then big. Everybody wants to be green.

But when things sound a little too good to be true, they usually are.

Let’s back things up a little: What’s the point of being green? Well, that depends on who you ask. The original intent is of course to save the Earth, stop global warming and so on. From the brand builders perspective, it’s about charging your brand with a dose of caring and responsibility so that the consumer can buy shares in your brand (that is, your products), thus appending the same caring and responsible aroma to his or her own personal brand (let’s face it, saving the world is just not incentive enough). This COULD be a really powerful synergy between brand and Earth, but as it turns out a lot of the green-branded eco friendly products are just not green. Fortune magazine just wrote a small but nicely put together little piece on this phenomena called greenwashing. Google that term for a little while if you feel like getting depressed.

The problem with greenwashing is that we’re really watering down the brand of green. When things REALLY are green and good for the Earth, we just won’t be able to tell because they look just like the greenwashed products. And when we won’t be able to tell, we can’t make choices that are good for the environment, and BOOM – we’re back where we started.

But I don’t believe that all is lost. Sure, green will turn out to be just a fad (that’s a promise), but that’s really not so strange. Green is not owned by anybody, and when it’s not owned, people don’t care if it get’s scratched more than they do about a rental car. Instead we’ll start seeing a lot more proprietary brands attaching themselves to believable statements that they will have to prove on an ongoing basis. Whole Foods is an early example of this where only products that are NON-organic are marked as such. Organic is the default. And if Whole Foods turn out to be greenwashers, they really have something to loose. Such as their entire brand value. The key for them will be to take real action that is hard to copy. They need to DO things, not just say them. Marketing as a service (MAAS) and/or marketing as a product (MAAP) is the way to go here. Let your actions speak. I guess that’s true for all of us.

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