Author name: Shubranshu Singh

Show Me The Money

The Retooling of Fintech and its Existential Challenge to Traditional Banking In recent times, there is a blinding halo around Fintech startups. Their potential for success is such that the largest players in venture finance are queuing up with investments. Successful IPOs are proving their bets right and further feeding this frenzy. The pipes that carry the world’s most precious commodity have always been important. That commodity is no longer money but ‘data about money’. There is a virtuous, mutually reinforcing, loop between data and money. The proliferation of smart phones and the universal growth in e-commerce is seen, by all, as a value accelerator. The pandemic has further made this accelerated innovation a dire necessity. As a result, more than 20% of all funds given to startups in 2021 went to Fintech. It was the single largest recipient. Acquisition of promising startups has been a longstanding strategy of Visa and MasterCard. This is seen as muscle building by this duopoly to add technology and processing capabilities. Both Visa and MasterCard are still very much in play as acquirers, investors, principals. However, the game is now bigger. From an evolutionary perspective, the banking sector is ripe for disruption and traditional banking has been giving way to ‘new age financial experiences’ provided by the NBFCs and startups of the Fintech space. The new players have deviated from the traditional banking modalities and hence successfully caused disruption. For a thousand years, the core collateral based lending model has reigned supreme. That is changing and things will never be the same again. Startups with a wealth of first party consumer data assets are muscling into traditional banking’s turf by confident lending done seamlessly and in a heartbeat. This is a change in both the genre and process. It is a delight in terms of customer experience. Where the consumer is concerned, it’s ‘faster cheaper better’, cliché and all. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Just the other day, I received a notification from Cred offering a line of credit. What struck me was the ease with which I could have utilized this service without any documentation and then repaid, in installments, activated entirely from my smartphone. Compare that with how a bank lent me money to buy a home. It took endless documentation and several meetings to get the loan sanctioned. The Chinese giants Alibaba and Tencent made their fortunes building payment networks, then reducing interchange fees and then launching integrated social and e-commerce platforms. The traditional 4-party model of Visa and MasterCard comprising the issuer, acquirer, merchant and customer is still flourishing but its underlying economics is being undercut in a big way. The new challengers are armed with better information about customers today than any bank. They can lend with low risk and if borrowers do not pay back, they can be ostracized from social and e-commerce platforms which amounts to an existential matter today. This ‘information asymmetry’ is extremely powerful as institutions like Ant Financial with first-, second- and third-party data sets can triangulate in real time and make very sharp predictive assessments on a borrower’s viability and other information. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Across the world, Fintech disruptors started small and serviced a particular need of consumers exceptionally well. Then they expanded into an integrated ecosystem offering a multitude of services like Lending, Ecommerce, or Insurance. This differs from case to case. The Economist reported that Fintech firms enjoy better ROEs (~20%) compared to traditional banks (~5-6%) which means they command a premium in valuation. Today, Fintech companies are valued more than $1.1 Trillion, a good 10% of the global banking and payment industry’s worth. Along the way, many shall deflate in value terms and more than a few will go bust but they are representative of the changed order and new scheme of things. PayPal and Stripe are valued at $310B and $95B, respectively.The Swedish ‘Buy Now, Pay Later’ startup Klarna is valued at $46B while Indonesia’s Grab is valued at $40B. Razor Pay and Paytm are some of the leading Indian startups in this space. As these new age institutions become bigger and reach more consumers, they gain from network effects and offer better cost competitive products and this, in turn, boosts their growth even further. These companies are especially beneficial for emerging economies since access to banking is lower than in developed countries. One such Indian initiative was the UPI (Unified Payments Interface), created by the Government of India. It has disrupted the business model for e-wallets and even debit and credit card providers, all because of the convenience and hassle-free experience. It is because of such experiential differentiation that NBFCs and new age startups have been rising at breakneck pace and traditional banks have been losing share steadily over the last 2 decades. NBFCs have seen a surge in asset holding because of newer methods of lending and, as of 2019, they hold more than 50% of all financial assets, globally. With all this happening, central banks and regulators were bound to wake up and take notice. And they did. There are centrally sponsored experiments and studies running across the globe which study the benefits of digital currencies, cryptocurrencies, payment networks (like UPI) and information sharing across the financial space. For example, European regulators are looking at the possibility of sharing online consumer behaviour which can then be used by all financial service providers. This is akin to a CIBIL score in India but differs in the scope and depth of data used.After the experiments with the Chinese Digital Yuan, now even the US Federal Reserve has begun evaluating the pros and cons of a Digital Dollar and that obviously does not bode well for the commercial banks. Payments would be settled faster and transaction costs could be nullified among other benefits. The ECB is also looking at similar possibilities. This relentless advance of Fintech will touch everything that money touches and will flow everywhere that money flows. We are going to see more innovations in the world of finance

Show Me The Money Read More »

Is preaching to the choir bad marketing?

When defending niche plans, it is fashionable amongst marketers to use Nike and Apple as examples of ‘pure focus’ in brand building. It is important to decode their success, if only to evidence that their customer acquisition is based very much on mass marketing. Nike is a great example of a deeply committed brand pivoting away from core enthusiasts, throwing its circle wider and doing so via brilliant communications. By 1987, Nike had fallen to third position behind Reebok and Adidas after more than two decades of strong credential building as a ‘running shoe specialist’ in America. It was seen as the maker of technically advanced, sleek shoes for athletes who wanted to push their bodies. But this niche bastion began to crumble when there was a transition from ‘running’ to ‘sports and fitness’ in a more general sense. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Nike till then was a successful but very narrowly defined brand. Its narrative was ‘for and about’ serious male athletes intent on winning. Nike was talking mostly to its devotees. Like with most deluded brands trapped in past success, corporate hymns and self-praise passed off as advertising. History doesn’t repeat itself in branding, it dies as a weak echo. ‘The law of marginal futility’ began to show its effect. Nike then made a defining change. It sought to being noticed by all. It made itself mentally available to more people. Nike squared the circle with the famous W+K campaign ‘Just Do It’. It was about the ability to feel a sense of exceptionalism accessible to all, not merely to gifted athletes. With this transition, Nike went from being an aspirational brand for a few to being an inspirational brand for all. Thereafter, it was about hope and effort. It did not make a distinction between encouragement and exhortation. ‘Just do it’ is for all, whether you are a couch potato or an Olympian. It was understood easily, everywhere and by everyone. Nike never looked back. This is also the journey that Apple undertook when Steve Jobs came back to save a sinking brand. Experienced marketers also fail to see that Apple is—where it matters—a highly successful ‘traditional marketer’. Steve Jobs moved every lever to expand share of market. He launched the cheapest iMac as a first portfolio addition. He moved beyond his loyal customer base. He kept product at the heart of all advertising and expanded physical access. It was not about rebel creativity. It was about a wonderful marriage of technology, design, utility and a relentless association building top of the consumer mind. Till today, Apple spends most of their money on traditional advertising—in particular TV and outdoor. Apple’s advertising is consistent and looks much the same as it did a decade ago. It is always product focused. Apple spends minimally on social media and almost all their online ad budgets highlight performance. In other words, they do contrary to what’s awarded, trended, and sanctified theory. That is what all greatly successful brands do. They make choosing and buying as simple as possible. But, to achieve this, they must establish collective meaning and be consistent in the associations they communicate. The price of establishing unique relevance through targeted messaging is that you end up sacrificing shared cultural meaning. Many companies are going too far in their veneration of specific data concerning the individual. Putting individual relevance before collective meaning is not some gold dust.   So, let’s establish that brand building is about: Common sense as opposed to complication Universalism as against individualism; and Well-defined as against fluid or amorphous. Being something to everybody beats trying to be everything to somebody!   Mass brands must always be: Appealing to common senseThe speed of technological change disrupts society in ways increasingly impossible to predict. In contrast, human beings remain unchanged. Underpinning all decision making, an important aspect of our unchanging behaviour is the fact we evolved to be ‘cognitive misers’. As such, the brand’s primary role is to reduce the cognitive burden. A brand simplifies choice, signals an identity and communicates a position everyone can grasp. Beyond making the purchase decision easier, brands can also have a symbolic value, enabling people to express their identity to others. Across every age and culture, we have hunted for ways to acquire social cachet; consumption has always been social, never private.In this view of purpose, the brand provides a simple way of choosing what to buy, conveying an identity and creating perceived value. To achieve this, the brand must establish collective meaning. Universal: The individual is less important than the entire group in establishing meaning. That is how brands offer a social dimension.Brands are in the business of anticipating and shaping mass behaviour. Humans rely on brands as ‘buying shortcuts’ based on shared knowledge and understanding. If a brand fails to demonstrate what it stands for amongst non-buyers, it risks losing the social dimension. Well-defined: A brand must not dilute its meaning chasing new things or by irregular communication. This requires the shared associations and meanings around the brand to remain consistent across groups of people. It has to have one unifying idea. Dove, for instance, is anchored in body positive feminism; Marlboro owns rugged frontier masculinity; and Patagonia conveys adventure and environmentalism. To remain effective, advertising must find new ways to repeat itself. Own a few things in the consumer’s mind and own them through repeated association. Build positive, habitual bias.   https://www.forbesindia.com/blog/marketing-and-branding/is-preaching-to-the-choir-bad-marketing/

Is preaching to the choir bad marketing? Read More »

Data over money – What Mastercard development tells us

The rise of national payment networks and the rapid scale up of ubiquitous tech options point to a rapidly changing regulatory and competitive landscape. The walls will go up higher as sovereign entities, independent institutions and large corporations all move to protect their data interests.   [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] This is not something that is unique to India. The pipelines of world monetary flows are being tapped and metered and the valves are being fitted in by sovereign authorities. The ban of MasterCard is only a small glimpse of the obvious future. Understandably, the RBI does not want data from India to be placed anywhere outside India, though it is ok with data being shared abroad for processing and subsequent deletion. Payments data is about economic, monetary and banking health. It is about your and my money and account status. It needs to be protected, sensibly. The guardrails need to be clear and evolving. Regulation will chase technology at a lag. But it must endeavour to do so relentlessly. MasterCard reportedly made a large investment for a data center in Pune and had been arguing that data mirroring helps in the detection of fraudulent transaction trends and that if Indian data is not used for this purpose, their detection systems won’t be able to detect frauds effectively in India either. They contended that in order to localize data storage, they need to decouple local data from their main servers and that this increases costs and consumes months of time and effort. The RBI, after due evaluation, passed the orders that it did. The MasterCard logic was not admitted. Visa on the other hand was happy to comply with localization norms much earlier. I was marketing director for Visa for South Asia between 2011 and 2014, and shaped it through some interesting times. Stakeholder engagement was a key priority be it consumers, issuers, regulatory bodies, or opinion builders at large. When the NPCI was born I was very much the Marketing person responsible for Visa. I also pioneered the very first ‘debit card usage online’ campaign called ‘Dream to Advance’. The entire thrust was to ensure that Visa is transparently seeing as a force for good. My effort was to explain and evidence that Indian businesses, financial institutions and the larger nation-building task of financial inclusion were aided by participation from the world’s leading payment network. I also led the ‘go to market’ work for a USSD based mobile platform as a JV with Monitise plc. I was also involved in a large effort with Mr. Nandan Nilekeni’s pioneering work with UIDAI to extend financial inclusion by expanding biometric-based account creations with every corner store set up as a potential banking correspondent. Many of these projects did not see the light of day but the underlining fact was, India was important and those who do business in India must put Indian interest first. Now, the MasterCard issue has some direct repercussions – some credit card providers like RBL Bank, Yes Bank, Bajaj Finserv and Flipkart-Axis had their entire credit card business on the MasterCard network and are almost entirely sure to face business losses since credit cards are an extremely profitable offering for any lender. The only respite to them will come in the form of a tie up with Visa which will still take 8 or 10 weeks at the earliest. This intervention is bound to create a dominance of the Visa and Rupay networks at least in the credit card space. Visa already held a mammoth 45% of the credit card market in India (Mastercard held 33%) and now this is bound to go even higher. But these are relatively minor consequences and adjustments when looking at the overall industry. While the RBI was busy punishing Diners, Amex and Mastercard for non-compliance with Indian domestic data storage norms, there were fintech startups raising record amounts of money ($34B in this year alone) globally and guess what is at the core of their business model? Data. Paypal and Stripe are payment platforms and are valued at $310B and $95B respectively. Swedish ‘Buy Now, Pay Later’ startup Klarna is valued at $46B while Indonesia’s Grab is valued at $40B. RazorPay and Paytm are some of the leading Indian startups in this space, though their value is not nearly as high as what some of the foreign companies command. Fintech players like UPI have already led to an increasing democratization of payments (it has been fast replacing Debit cards and net banking transactions). Now, with no new debit or credit cards from Mastercard, UPI looks to be the biggest beneficiary, even more so than any other credit or debit card network provider! Such homegrown and government-backed payment networks are more common than you might imagine. Rupay and UPI networks in India and China Union Pay in China are the largest in terms of users, card base, potential volumes and eventually, cross border implications. The Chinese and US governments are also experimenting with their own digital currencies which are designed to offer a whole host of more features compared to the currency in circulation. It seems governments across the world are now waking up to the rising importance of payments and data in general and would like to exert as much control as possible. They feel that this oversight is required for better law enforcement and to prevent any foreign surveillance on their citizens. Also, data breaches have made the regulators more skeptical. Russian, Chinese, Indian, Indonesian governments are insisting on domestic storage for data pertaining to their citizens. The entire fintech industry is exploding with solutions coming from all parts of the globe. There are new-age payment networks, payroll management systems, e-commerce portals, taxi hailing services turned lenders, wealth management platforms, insurance providers, etc. All of this is centered on user convenience and seamless experience which is made possible using data and consumers are better off while using these services. These services are especially beneficial to emerging markets as banks don’t or

Data over money – What Mastercard development tells us Read More »

A Letter From The Future

Thanks to common data culture, the tyranny of this brand collectivism disappeared. In 2040, 0.5% share of the market became the minimum value share required to be eligible for existence as a discrete data unit. Even till then the brand‘s performance standards were legally tied to your microchips requirement assessments. You could opt in but not dictate. August 2050 Dear Editor, Thank you for asking me to be a part of ‘Recap 2050’. I am 76 years old now and honestly, I had to get my memory back up chip reprogrammed to be in the ‘Uni-minded mode’ and on ‘Linear-memory mode’ to be able to compose this letter to you. I have been operating in manual thinking mode and to help build the mood I actually had paper records disinfected so I could refer to some of the originals. You know that the last E- brand that can possibly be called ‘mass’ was decommissioned last year and now there is nothing called a ‘mass brand’ in the world. I suppose it is a logical continuum to the disappearance of mass media. Some folks like me think in nostalgic terms but honestly it was coming and due. As I was going through the records and jogging my memory, I saw that till about 2027 AD the bulk of advertising was done via mass media. Then onwards, mass media got the minority share. This is much before the ‘Green Consumption Commune’ and the ‘Universal E-citizenship Program’. Back then, people actually lived within physical national boundaries. But there were “global” brands nonetheless travelling across national and cultural boundaries. Basically, it was a primitive but fairly efficient model. The bottom line was that brands were supposed to make buying easy. Believe it or not, most so-called global brands had small tight portfolios with barely a dozen variants of anything. Imagine that! Still, because brands were reservoirs for collective meaning, they were seen to represent the same thing to hundreds of millions of people. How primitive was that? Ha! Then of course, the ‘Private Sovereignty Data Union’ emerged as a force and then onwards everything was known by everyone. Neuro implants and real time data reboots made branding a quaint concept, like keeping candles at the dinner table. Some people regret that those concepts like cultural icon, brand purpose and equity were lost forever and replaced by the ‘Personalized E-Self ‘. I remember back then products, packaging, propositions, promotions, and prices were relatively stable even remaining the same for up to 24 or 36 months. Do you remember that in the interim there was this whole movement called ‘Social Media Marketing’ which effectively became a short lived mutant version of mass media. For a while social media became big but social media marketing was another matter altogether. Technology made neuromarketing extend the ability to make us get messages when we need, when we like, when we want to respond straight to our active mind. How could earlier versions survive? It was inconceivable. Later skin and organ-based microprocessors have become the norm. I am still old fashioned and have the base chip kit and that too only version 4!! Problem is that man to man connections can be downgraded but device to device ecosystem is perpetually auto-upgrading. Now, we cannot help but be in a catch-up mode as humans. It amuses me now to think that even at the end of 2038 A.D, the International Data Union had not happened, and Big Data back then meant Facebook, Google, Amazon etc. Barely 2 million targeted messages were delivered on average and actioned, that too monthly. Today, we do some 90 million deliberate messaging daily even for the ‘non-implanted common data consumers.’ So, by 2040, supercomputing algorithms were commercialized on a “per second processing usage basis” and most people chose cheap implants and delegated consumer decisions to the Big Mind Miracle Processing Federation. This is why even non-implanted human consumers opted for 200+ personalized brand products and services. And of course, the average consumer environment – Goods, Furniture, Food – got their own data link personalized brand imports. I laughed out loud when I remembered that we went to a shop to physically buy colas, bread, and eggs. Things were so clunky that the most cutting-edge equipment had barely begun to understand spoken instructions. There was absolutely no common pool “Imagine – Action” domain. Yes, there actually used to be multiple brands of milk and colas and people bought the same thing again and again. Thanks to common data culture, the tyranny of this brand collectivism disappeared. In 2040, 0.5% share of the market became the minimum value share required to be eligible for existence as a discrete data unit. Even till then the brand‘s performance standards were legally tied to your microchips’ requirement assessments. You could opt in but not dictate. But of course, this was not a ground that could be defended, and corporations then began to surrender residual brand values to the data trust. This is the way an era that was in existence between roughly 1880- 2040 A.D. ended. It was a pre-data age of relatively primitive methods collectively called ‘Marketing’. I was called a ‘Marketer’ for many years. Let me know when you want to teleport my memory to download the backups. Lots of good wishes Take care! http://www.businessworld.in/article/A-Letter-From-The-Future/05-07-2021-395403/

A Letter From The Future Read More »

Envisioning A New Marketing Organization

One of the shortest lived marketing concepts in recent years was interactive advertising. It was a deliberately hyped up utopia. It never worked. People don’t interact with advertising. Yet, common marketing delusion is that consumers want to have deep, immersive, engaging, conversational relationships with brands. Decades later, than required, the marketing world is waking up to a new reality. Consumers do not organize their lives to consume marketing. They do not aspire to ‘relationships’, ‘immersive connect’ or ‘conversations’ with brands. Yes, they are gung ho about social media. But social media marketing is just as grating as any other interruptive aggravation. Of course, there are loved brands which have communities that adore them. But, they are the exceptions. How then do we build on a foundation of realism? By following, not leading consumers. Invest in building marketing around customer journeys. When customer journey transformations are seen as a ‘new tech, ad-tech, hot tech’ effort, they are doomed to fail. You get fancy presentations that fail miserably in human-centred design. To make ‘customer perceptible impact’ one has to change culture, processes, operating model, and ways of working, at scale. And that’s very hard to do. How to make customer journey transformations that work? 1. Match ambition with plan It is easy to set goals. It’s very difficult to make clear plans. The only plans that matter lead to growth or efficiency. Rest is mumbo jumbo. 2. Define journeys broadly Do not focus on narrow sections of a customer’s experience. This myopia with regards to transactional touchpoints reinforces siloed ways of working. Digital transformation is not about digital episodes, events or digital theatre. A large customer journey program cannot be done top down in a traditional hierarchy. It ends up working in silos rather than across them. Break the silos. Make teams cross-functional. Make plans ‘front to back’ in scope. 3.Follow up relentlessly. Groovy pictures, infographics, customer personas, glib talk. Promotions are earned, plans are approved. Not enough time is spent on people, processes, operating model, and technology changes even at the initiation stage. Then, management interest moves on. Reviews become a formality. This cannot be. Make the review ongoing. Reward on the ‘how’ and the ‘what’ of the achievement. 4. A pilot is only a pilot. Vested interests define pilots such that they are limited in scope or reach, excludes top talent, and insufficient in ambition and potential. Pilots must be large enough that, when successful, they make the full project inevitable. 5. The big picture is fine but it has to be seen from the customer’s eyes. It is easy to emphasise the wrong metrics – general sentiment, company NPS, brand health. The big picture must aggregate metrics relevant from the customer’s perspective. Put yourself in customers’ shoes. Each journey—such as becoming a customer (buying a product or service), using the company’s products or services, expanding the relationship (getting additional products or services), and resolving issues—contains a set of sub-journeys. All need to be measured before and after in consumer terms. 6. Involve all the necessary functions and operations. Many companies mistake improvements with creating a customer journey. Introducing a mobile app or dressing up a website or streamlining sales channels won’t necessarily produce a quicker or easier path to a better customer experience. Treat journeys collectively as a comprehensive effort rather than as separate projects. Because the customer-journey-at-scale transformation is a long-term program, setting it up requires both thoughtfulness and boldness. Develop a list of relevant journeys, evaluating the business benefits of each and tying the expected outcomes to the company’s overall strategy and purpose. These journeys then become the primary basis for organizing teams. 7. Bring together the best The company should realign existing teams and initiatives in accordance with this new structure, and should fill any resource or skill gaps that result from adopting it. The company should also appoint high-potential talent as journey leaders, making them accountable for the overall journey outcomes. To support the journey program, company leaders must activate a set of enablers. These should include modified incentive plans, performance management metrics, career growth plans and reporting structures for team members, training for senior leaders in the new ways of thinking and working, and suitable new workspaces for the co-located teams that brings together designers, analysts, process engineers, data scientists, developers, business managers, technology specialists, and other personnel. Conclusion Future growth and success depend as much on redefining the customer experience as on offering better products and services. In the digital era, the ability to pivot nimbly to accommodate changing customer tastes is critical to maintaining market share; discrete incremental improvements just won’t cut it. To put their customers at the center of their business, companies should take their cue from digital natives and reorganize change initiatives around the customer journey – an end-to-end approach to conceiving and solving each distinct customer mission. This approach, customer-journey-at-scale transformation, is the answer marketers cannot ignore. https://etinsights.et-edge.com/envisioning-a-new-marketing-organization/

Envisioning A New Marketing Organization Read More »

Storyboard: The neglect of creativity is the data-driven marketer’s biggest mistake

Almost every other week I get some invitation or the other to speak about some horrifically imagined ‘technology meets creativity’ type seminar. Marketing is becoming part data engineering and part surveillance. It is referred to as ‘technology-enabled storytelling’! Metrics rule the world of brand building. I am all for harnessing the power of technology and data, but the mule cannot ride the man. The most precious thing in brand building is an idea. Creative imagination has unmatched power to build iconic brands. But this truth is being ignored perhaps because there are not enough creative ideas. Creative agencies are large corporations. They look at creative work in terms of revenue and cost. Doing culture building creative work is the most interesting thing to do in marketing. There is a lot of false pride in the creation of legendary creative personas. That said, it is beyond dispute that creative gold dust develops brand appeal.   [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Consumers don’t read your annual plan, vision documents, emails, excel sheets or even the much hyped ‘briefs’. They only see the advertising. Consumers listen to other consumers. They experience the product. If the mix does not work, it does not work. Your ‘brief’ or ‘5-year plan’ will not convince them. I am shocked when I hear marketing folks, rhetorically or for real, questioning the need for advertising. The question walks on two legs – Firstly, ‘is advertising effective?’ If so, ‘how do we know that more creatively appealing advertising is more effective?’ Sacrilege! If marketers discard and trash creativity and content led communication what hope do we have of anyone else carrying a torch for it? Here is my take – data, digital experience, optimisation, etc. all of this can be done by non-marketers. A program can do better in some cases. It is as if analysts, ad-tech specialists, and data scientists are falling from the sky for free. A lot of the froth is about what’s ‘being trended’. The symptoms are being shown in place of the diagnosis. The reason why advertising is ineffective is because poor advertisements are on air. There are poor advertisements on air because creative ideas are rare and clients who appreciate them are rarer still. Secondly, the lack of creativity is being covered up by some abracadabra about an “idea whose time has come” and “purpose” and so on. Craft is rendered meaningless. If you make Chicken biryani you need chicken. Making it with soya bean nuggets is not about the craft of cooking biryani. This truism is quite clearly and rampantly violated. The pipe does not quench the thirst, the water does. The guitar will not play itself. The road will not move the car. This emphasis on technical preparedness and digital advantage whilst ignoring creative appeal and craft is suicidal. Remember marketing – advertising has no need to be in this world. It is an act of creative smarts to begin with. We owe our existence to the primacy of ideas. We have data, machines, methods, metrics, and measurements galore. What we do not have enough is talented creativity. Let us put ideas at the heart of the marketing profession or a data driven robotic program will generate your ‘acceptably creative’ obituary! https://www.cnbctv18.com/storyboard/storyboard-the-neglect-of-creativity-is-the-data-driven-marketers-biggest-mistake-9421851.htm

Storyboard: The neglect of creativity is the data-driven marketer’s biggest mistake Read More »

The neglect of creativity is the data-driven marketer’s biggest mistake

Almost every other week I get an invitation to speak about some horrifically imagined ‘technology meets creativity’ type seminar. Marketing is becoming part data-engineering and part surveillance. It is referred to as ‘technology-enabled storytelling’ Metrics rule the world of brand building. I am all for harnessing the power of technology and data, but the mule cannot ride the man. The most precious thing in brand building is an idea. Creative imagination has unmatched power to build iconic brands. But this truth is being ignored perhaps because there are not enough creative ideas.   [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Creative agencies are large corporations. They look at creative work in terms of revenue and cost. Doing culture building creative work is the most interesting thing to do in marketing. There is a lot of false pride in the creation of legendary creative personas. That said, it is beyond dispute that creative gold dust develops brand appeal. Consumers don’t read your annual plan, vision documents, emails, excel sheets or even the much hyped ‘briefs’. They only see the advertising. Consumers listen to other consumers. They experience the product. If the mix does not work, it does not work. Your ‘brief’ or ‘five-year plan’ will not convince them. I am shocked when I hear marketing folks, rhetorically or for real, questioning the need for advertising. The question walks on two legs—first, ‘is advertising effective?’ If so, ‘how do we know that more creatively appealing advertising is more effective?’ Sacrilege! If marketers discard and trash creativity and content-led communication, what hope do we have of anyone else carrying the torch? Here is my take—data, digital experience, optimisation, etc, all of this can be done by non-marketers. A program can do better in some cases. It is as if analysts, ad-tech specialists, and data scientists are falling from the sky for free. A lot of the froth is about what’s ‘being trended’. The symptoms are being shown in place of the diagnosis. The reason why advertising is ineffective is because there are poor advertisements air. And there are poor advertisements on air because creative ideas are rare and clients who appreciate them are rarer still. Second, the lack of creativity is covered up by some abracadabra about an “idea whose time has come” and “purpose”, and so on. Craft is rendered meaningless. If you make chicken biryani you need chicken. Making it with soya bean nuggets is not about the craft of cooking biryani. This truism is quite clearly and rampantly violated. The pipe does not quench the thirst, the water does. The guitar will not play itself. The road will not move the car. This emphasis on technical preparedness and digital advantage whilst ignoring creative appeal and craft is suicidal. Remember marketing-advertising has no need to be in this world. It is an act of creative smarts to begin with. We owe our existence to the primacy of ideas. We have data, machines, methods, metrics, and measurements galore. What we do not have enough is talented creativity. Let us put ideas at the heart of the marketing profession or a data-driven robotic program will generate your ‘acceptably creative’ obituary! https://www.forbesindia.com/blog/storyboard/the-neglect-of-creativity-is-the-data-driven-marketers-biggest-mistake/

The neglect of creativity is the data-driven marketer’s biggest mistake Read More »

Neglect of creativity is the data-driven marketer’s biggest mistake

Almost every other week I get some invitation or the other to speak about some horrifically imagined ‘technology meets creativity’ type seminar. Marketing is becoming part data engineering and part surveillance. It is referred to as ‘technology-enabled storytelling’! Metrics rule the world of brand building. I am all for harnessing the power of technology and data, but the mule cannot ride the man. The most precious thing in brand building is an idea. Creative imagination has unmatched power to build iconic brands. But this truth is being ignored perhaps because there are not enough creative ideas. Creative agencies are large corporations. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] They look at creative work in terms of revenue and cost. Doing culture building creative work is the most interesting thing to do in marketing. There is a lot of false pride in the creation of legendary creative personas. That said, it is beyond dispute that creative gold dust develops brand appeal. Consumers don’t read your annual plan, vision documents, emails, excel sheets or even the much hyped ‘briefs’. They only see the advertising. Consumers listen to other consumers. They experience the product. If the mix does not work, it does not work. Your ‘brief’ or ‘5-year plan’ will not convince them. I am shocked when I hear marketing folks, rhetorically or for real, questioning the need for advertising. The question walks on two legs – Firstly, ‘is advertising effective?’ If so, ‘how do we know that more creatively appealing advertising is more effective?’ Sacrilege! If marketers discard and trash creativity and content-led communication, what hope do we have of anyone else carrying a torch for it? Here is my take – data, digital experience, optimisation, etc., all of this can be done by non-marketers. A program can do better in some cases. It is as if analysts, ad-tech specialists, and data scientists are falling from the sky for free. A lot of the froth is about what’s ‘being trended’. The symptoms are being shown in place of the diagnosis The reason why advertising is ineffective is because poor advertisements are on air. There are poor advertisements on air because creative ideas are rare and clients who appreciate them are rarer still. Secondly, the lack of creativity is being covered up by some abracadabra about an “idea whose time has come” and “purpose” and so on. Craft is rendered meaningless. If you make chicken biryani, you need chicken. Making it with soya bean nuggets is not about the craft of cooking biryani. This truism is quite clearly and rampantly violated. The pipe does not quench the thirst, the water does. The guitar will not play itself. The road will not move the car. This emphasis on technical preparedness and digital advantage whilst ignoring creative appeal and craft is suicidal. Remember marketing – advertising has no need to be in this world. It is an act of creative smarts to begin with. We owe our existence to the primacy of ideas. We have data, machines, methods, metrics, and measurements galore. What we do not have enough of is talented creativity. Let us put ideas at the heart of the marketing profession or a data driven robotic program will generate your ‘acceptably creative’ obituary! Appeared Brand Storyboard https://www.moneycontrol.com/news/trends/advertising-trends/neglect-of-creativity-is-the-data-driven-marketers-biggest-mistake-shubhranshu-singh-6935591.html

Neglect of creativity is the data-driven marketer’s biggest mistake Read More »

Scroll to Top