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!

Don’t believe everything I say, also check out Rich Nadworny’s post on our advertising agency Honesty at the Digital Strategy Blog. Thanks for writing Rich!

/W.

Haven’t been writing much lately. Things changed pretty rapidly at the agency, and suddenly my writing habits had to give way to meetings and pitch-work. It might also be a poor excuse for a bad case of writers block. I’m not sure.

From a work day where I was the only full time employee at the agency (with a network supporting me of course) we’re now four full time people at the office every day, with two more on their way in. Pitches and presentations piled up quickly, and we’re now working hard to keep up. So far I’m really proud of the work we’re doing

We’re looking for a good art director by the way, if you happen to be or know one. He or she has to be fast, productive, innovative, hands on, digital & analogue. We don’t ask much. On the other hand, for somebody who would love to work at an experimental but efficient Willy Wonka factory for the low wages we can afford to pay, this could be just the thing.

So now you’ve heard my excuse for not writing. It’s a pretty lame excuse. Because writing really is crucial for my inspiration. I notice though, how hard it is to start writing after even a short break. Writers block builds up crazy fast. In my ideal world I write something every day on here, and I will try to get back into it. Not so much for you as for myself.

On a completely different note, I’ve re-opened the Friend Connect membership system in the column on the right, so go ahead and join and we’ll change the world together. Everybody’s welcome!

We may have some exciting news in store for you for tomorrow, so today is a non-writing-all-working day. Instead I’ll show you my favorite clip from my favorite sport, which was posted on my favorite web service by one of my favorite tweeps.

Enjoy.

It was more than eleven years ago that I started my academic career at the M.Sc.-program for media technology at Linköping Institute of Technology. Way back then, the web was completely different, Google didn’t exist (it was actually founded the same year), and ICQ was the name of the game for communication.

But it wasn’t too long ago that I went to ad school, and now that I think of it, I find a few things about my education there quite strange. While I was there I did a bunch of interesting stuff. Formally, I was a copywriter student at Berghs School of Communication, but in reality I was more into strategy, and I also did one of my internships as an art director at BBH New York (who also have an SEO-questionable big Flash-behemoth as their site by the way). I have always loved trying different things, and this was certainly a great opportunity to do that.

Oh, nostalgia. My desk at BBH New York.

But the copywriting education itself was flawed in one key way – whoever put it together didn’t seem to be aware of something called “the internet”. I never once in two years heard anyone talk about web copy, much less give a lecture on SEO. I’m not sure how it is there today, but if they don’t dedicate time to that, I think it is very strange.

But the problem isn’t just in the schools. I read an article recently in the Swedish advertising magazine Resumé by a young and successful copywriter who said that web copy doesn’t differ very much from traditional copy. This is what he said:

“Jag ställer mig också ibland frågande till definitionen av webbcopy. Skillnaden är inte så stor, det är bara de dramaturgiska förutsättningarna som är lite annorlunda. Men i grunden handlar det om att kunna skriva intresseväckande”.

or in my own humble English translation:

“I sometimes question the definition of web copy. The difference isn’t that big, it’s just the dramaturgical premises that are somewhat different. But basically, it’s all about writing to awaken interest”.

Assuming he was quoted correctly, I find this strange. We can of course have different perspectives on what constitutes a big difference, but I would say that the difference is definitely significant! And more importantly, most copywriters don’t have any knowledge of, or experience from writing for search engines.

Google isn’t like your normal target audience. For one, Google doesn’t read between the lines. Humans understand that a passage like “…the dark mysterious pulse of the the night…” refers to, say, dance or sex, but can Google understand that? Google does, on the other hand, read around the lines, takes context into account, weighs remote links, clusters and evaluates what others have written – stuff that humans have a harder time doing.

I tell copywriters “to write for the hearts of men and the mind of Google”, and that is much harder than just doing one or the other. Good copywriters will need two sets of skills, and will be harder to find, harder to educate, and much more expensive to buy, simply because of the upcoming imbalance between supply and demand of this skill combo.

Yesterday, BBH Labs wrote an interesting post commenting on some of my thoughts on internet transparency and gossip. The post itself, as well as the comments, are well worth a read. Since it’s one of my favorite topics, I naturally wanted in on the discussion myself, but as I started writing a comment on their blog, I realized it would probably be a bit long for a comment, and instead decided to make it a follow up post here.

Q: Is there any evidence of better behavior and less cheating?

A: I think we can see plenty of evidence to support the fact that the breakdown of brand privacy forces brands to behave better. User comments and ratings are in fact the backbone of much of e-commerce, and are really a form of digital gossip. Companies behaving badly are exposed all over the place. Companies behaving well are to some extent rewarded, even though gossip gravitates towards the negative for natural reasons (it’s often more expensive in nature to make the wrong decision than valuable to make the right one). On the individual level, Googling is a standard part of hiring these days, and cheating husbands and wives are exposed all over the internet every day. Just to mention a couple of examples.

Before language evolved, cheaters were easy to spot in small tribes, but not in larger societies. When language evolved, efficiency of gossip increased and we could now crack down on cheaters and reward contributers in bigger groups. Now, with the social web, gossip is made even more efficient, thus making it possible to spot cheaters and reward contributers in very large groups, spread out all over the globe. It’s the same basic psychology and the same economics behind it, but more efficient means of communication enable us to increase scale. The economics of gossip are very much the same as internet economics, or information economics in general: Providing gossip is virtually free, while receiving it can be very valuable. This creates growth. As a fun excercise, you can try applying these economics to the “piracy”-debate.

“Q”: On one hand it all sounds a little Utopian (and some might argue, less fun). On the other, it does sound rather attractive.

A: It may sound utopian, but it’s really not. I’m not talking about perfect transparency with zero transaction and coordination costs (which would be utopian and impossible). Instead, I’m talking about an increase in efficiency, which leads to a more precise control system that is harder to cheat. Harder, but not impossible.

And I really don’t think that it’s a question of attractive or less fun, but rather of us increasing our ability to coordinate as a species. An increase in ability to coordinate enables us to coordinate more quickly, thus becoming more adaptive to changes in our environment. Those who adapt the quickest to change will be the most fit for their environment, and the fittest will survive. If we let this continue without destroying the efficiency with legislation, this is where we will gravitate towards by Darwinistic law. It’s somewhat like asking if life became less fun or more attractive when language was introduced. I can’t answer that, and I don’t know if it’s a relevant question. I do think that it made us more civilized, and I think that the web will have the same effect.

Q: For other societal constructs, such as a nation/regime, hard to say. The world had pretty honest information on the Iran situation, but that didn’t make the regime behave more honestly. On the other hand if
victims in genocidal warfare in Africa had means of disseminating real time information would the world be more inclined to intervene and act more honestly by upholding basic human rights?

A: There are a few different questions involved here, and I won’t go into the specific situation for each country, but on the structural level you can say this: There is a huge shift in power going on all over the world. The monopolies of information distribution previously (and sometimes currently) held by institutions by economic neccesity, are falling apart. And this makes those depending on such monopolies less powerful. For these institutions, the social web poses a threat, and the only way to stop the threat is to stop entire services, and indeed this is what we are seeing in some of these regimes.

Unfortunately for them, this is also very costly in terms of not tapping into the growth engine of gossip and digital gossip that we spoke about earlier, and will leave them with the choice of handing over power by unblocking internet services or loosing out in the competition with free countries. Ultimately, I think and hope that fighting internet freedom is a loosing battle.

The mini bus died. All of a sudden we feel the stench of burnt clutch, and minutes later everything just stopped. But more on that later. First a brief report on the highlight of the year so far for me – The Sweden Social Web Camp!

Anyone who has ever read Ayn Rand’s epic novel Atlas Shrugged will understand what I’m talking about. In the novel, the most talented, creative and productive people gather in what they call Galt’s Gulch to get away from the world of politics, envy and empty words. This event was just like that. Everywhere you turned you could talk to intelligent and interesting people with a ton of knowledge in different areas. Rarely have I enjoyed a conference this much! Sleeping in a tent was the final and perfect touch to the weekend.

The entire Saturday was filled with sessions on all kinds of topics related to the social web – most of very high quality. One of my absolute favorites was SEO-expert Simon Sundén’s talk on SEO.

But the most valuable aspects of SSWC was perhaps after all the informal interactions taking place all over the island. I could name several here, but notably Dan Carlberg of Bloglovin who is one of the brightest people I’ve met. I picked up a bunch of great ideas and hopefully contributed with a few. Check out #sswc on Twitter to tap into the conversation.

And what about the van? Well – no trip is complete without failure, right? Ours came when our van broke down on the way back to Stockholm. With a smoking clutch the van died just outside of Norrköping. After hitching a ride with one of Simon’s friends, we got on the train in Nyköping. And that’s where I am right now, writing to you.

Thank’s to all involved for an amazingly successful weekend, and a special thanks to Thomas Wennström who put it all together for us!

You may remember me writing about the Facephone a while back, and also about what I called open permissions. Well – the world just got a step closer to that scenario. But it’s not coming from Facebook, It’s coming from Google.

In addition the groundbreaking technology of Google Wave, Google’s new service Google Voice is also waiting to be rolled out. Still only in private beta, Google Voice could become a nightmare for network providers like AT&T or our Swedish Telia if they don’t drastically rethink their business models. Google Voice takes over your voice-calls much like Gmail took over email. It’s just better than what you are used to, and sets up your phoning into something similar to the open permissions functionality I mentioned above. It’s not all the way there since it still uses phone numbers, but it’s a crucial step along the way to putting you in the drivers seat of your own communications situation.

Read more about Google Voice here.

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”.

Communications strategy isn’t everything. There are also oysters. And scallops – raw in a shell, with a pinch of salt, pepper, a dash of olive oil and some lemon. We call them “Scallops Franck”, and we love them.

So, why am I writing about this in a marketing blog? Well – besides the fact that Franck has the best oyster bar in town, the story also contains a lesson in honest marketing.

This very special oyster bar is located in the entrance of the award winning restaurant Pontus!. Franck personally buys his products from the very finest producers in the world (like David Hervé) and is utterly picky about his quality. Last night I watched him throw away several oysters and scallops and even a bottle of wine that weren’t up to his high standards, products that would probably pass as sellable anywhere else. Watching him hand pick everything to achieve top quality is worth talking about. And people do.

Secondly he is very passionate about his work. His knowledge about oysters and Champagne is exquisite, but he is still as interested in what you think as in what Mr Hervé or other oyster celebrities have to say. Franck listens.

We go to Franck’s bar every Thursday, and every Thursday we see the same people hanging out in the bar. What we see are real relationships built upon real love. Sure, Franck could probably churn out way more product and keep better profit margins in the short term, but in the long run the brand equity of Francks name is what is valuable, and he’s building it without even realizing it. His mind is on his oysters, as it should be, and the word of Francks bar is spreading on its own. See – viral marketing isn’t about videos on YouTube, it’s about real value and a story worth telling.

Now, don’t even think about taking my seat by the bar on a Thursday. I have a standing reservation.