This week, the timeless debate over whether digital agencies are ready to take the lead role in brand stewardship has come to a frothy boil. The familiar comment flame war has erupted and the traditional flurry of blogging is already underway.  Meanwhile the Twitter-sphere is sinking their teeth in like a frenzy of sharks at an all-you-can eat steak buffet.  There’s blood in the water, people.  Everyone to their posts! (Pun intended.)

My colleague, Richie Cruz, has already penned an excellent POV on the subject and the last thing the internet needs right now is another opinion on the subject.  As CNN is apt to say, we’re going to leave it there.

But the whole snafu has really got me thinking, what do we mean when we talk about “digital agencies?”  From what I can tell, the term “digital agency” is a self imposed label that can refer to a range of capabilities and offerings.  We often find that in client meetings, we need to take time to define what type of “digital agency” we are.

What types of digital agencies are out there?

Excellent question.  From what I can tell, there are three different types of shops referring to themselves as digital agencies.  It can often be difficult to distinguish between the three types at first glance, and, while none of them are inherently superior or inferior to the other, each offer a very different service to their clients.  Broadly speaking, they are as follows:

• Digital Production Houses – These shops focus on producing top notch creative work from client or agency briefs.  They use their web savvy to execute and often improve upon the ideas and briefs they are provided with.  They are responsible for infusing technical, digital and creative expertise into everything they touch.
• Digital Think Tanks – These shops don’t actually produce anything.  Their role is to help clients strategically navigate the digital ecosystem and create smart briefs to task digital production houses with.
• Full Service Digital Agencies – Many of these shops began as digital production houses but have evolved their strategic capabilities.  They are increasingly being asked to take leadership roles on brands and bring their creativity and strategic prowess to bear on the overall brand.

For the record, we consider ourselves in the third category.  We take equal pride in our strategic thinking, technical innovation and storytelling/brand building and embrace them as tools necessary to deliver on our client’s objectives.

But if we, and other digital agencies, are looking to take leadership positions as brand stewards, why call ourselves “digital” agencies?

Why do agencies looking to take the lead role call themselves ‘digital’?

Brands span many channels and utilize a wide range of marketing vehicles.  Some of the biggest are customarily the domain of the “traditional” shops – TV, print, radio, and out of home (OOH).  Most traditional shops are fairly comfortable asserting that they can also operate in digital.  Originally, digital referred to “the internet,” but the term has expanded to cover a wide range of touchpoints including mobile, social networks, digital OOH, kiosks, software, and more.

It is, as anchorman Ron Burgundy might say, “kind of a big deal.”

Based on the level of client disappointment, it’s fair to say that traditional shops have struggled in the new medium.  But if products must be marketed through multiple platforms, don’t traditional shops have an inherent advantage when it comes to brand leadership?  Haven’t they been bringing brands to life through multiple vehicles for decades?  Why don’t they just blow the message out across the digital platform?  And why would a digital agency be better at it?  I think my colleague, Alex Morrison, hits it right on head when he writes:

“The problem is that digital is not just another content distribution channel. It’s not that consumers’ core expectations and behaviors have changed dramatically, but that Digital itself is fundamentally different from other media in its very use and purpose.”

What do digital brand ideas look like?

There is a fundamental difference between a “digital” idea and a “traditional” idea.  And it’s not the technology that delivers it.

Good digital ideas are based on interaction, social connection, and consumer value. Good traditional ideas are based on a compelling message. Both work to deliver a brand perception and ultimately a brand positioning.

The problem is that many traditional agencies are struggling to express their message-driven communications on a medium built for two-way communication and selective attention; where the visibility of an execution is based, not on the size of the media buy, but on its ability to generate social traction and pass along value.  Many marketers (ourselves included) believe that it is easier to translate a digital idea to the traditional space than vice versa.

That is why full service digital agencies insist on using the term.  It’s not just the technology that’s digital, it’s the ideas too.

Who should lead?

The quality of an agency (digital or traditional) is determined by how well it can craft and manage the brand positioning. A good agency should be able to take those brand ideas and ensure they are compelling and engaging across all mediums.

Any agency that can do that is fit to lead.  Any that can’t… well… throw em’ to the sharks.

By now, you’ve probably read Jacques Hueve-Roubert’s well written rebuttal of last week’s hot topic POV entitled “Why Digital Agencies Aren’t Ready To Lead”, written by digital marketing professional Ana Andjelic.  Many of the commentators of Ms. Andjelic’s post correctly noted that even beyond her overambitious title and blanket assumptions, the piece offered several scathing criticisms that seem to be either wholly subjective (at best) or basically arbitrary (at worst).  As this is a key issue facing our industry, I wanted to also state my position on the matter.

For starters, I am not of the mindset that traditional agencies “don’t get it,” or that they blindly support “obsolete ways of doing marketing.”  Traditional agencies are monoliths built upon years and years of consumer insight and understanding.  They were designed to effectively promote products through the tools and channels that had the most reach, since that was the quickest road to brand awareness, perception, etc. The issue is that, as the media landscape shifts, traditional shops maintain a “business as usual” structure and attitude, creating plans and ideas that are meant to be adopted/translated into the digital ecosystem, but are not truly engineered for it.

You wouldn’t refer to a traditional agency as a brand’s “television”, “print” or “radio” shop, so it’s a disservice to think of a digital agency as a stand-alone production shop, only capable of working within a limited, non-strategic context.

Guiding a brand through the evolving (and increasingly digital) landscape is a sophisticated and delicate undertaking. So, while digital agencies bring a new mindset and approach to the table, the underlying principles of brand strategy remain, and are certainly not the exclusive domain of traditional agencies. Digital agencies are stepping up to the plate, and we’ve seen several great examples of this already.

At AgencyNet, we love the opportunity to take charge and lead the idea process.  Contrary to Ms. Andjelic’s assertions, we’ve been doing it for over 10 years.  We firmly believe that ideas created for the digital space need to be rooted in interaction and consumer value.  Many times, ideas generated in traditional shops do not lend themselves to either and are at a tremendous disadvantage in the digital space.

The good news is that brands have begun to recognize this and chart their courses in a more savvy manner: Pepsi’s SoBe has tapped our friends at Firstborn as their agency of record, and earlier this week, Wrigley’s announced that it was handing over its creative duties to more of our close buddies at Big Spaceship, Firstborn, and EVB. Of course, the measure of success will ultimately be in the work, but for the time being if this doesn’t support the case for leadership, I don’t know what does.

Covering the subject of media convergence, the almost five-minute clip concisely contextualizes (pardon the alliteration) what I like to call “The Great Digital Divide:” how our society digests information, how that’s changing, and the role digital will play moving forward.

Take five minutes and indulge!

At the WBC, five hundred marketing professionals and brand managers from leading brands around the world discussed and answered today’s most critical business challenges.

Our VP Consumer and Brand Strategy, Alex Morrison, was invited to deliver a keynote presentation on brand participation across platforms.  Alex stressed that in order for brands to earn a natural place in people’s conversations, brands must create engagements that closely align with consumers’ existing passions.

You can check out his presentation below.

We’re also proud to announce that Alex was awarded the “Brand Leadership Award” for brand stewardship and innovation for his thought leadership and his work with Brian Chiger, Richie Cruz and the rest of the strategic team at AgencyNet.  It’s awarded to outstanding marketing and advertising professionals who demonstrate the highest caliber of strategic and creative thinking.

The dictionary definition of advertising, “the act or practice of calling public attention to one’s product, service, need, etc.” is starting to feel pretty quaint.  In fact, even the term “advertising” is starting to feel off the mark.

In all honesty, marketing is starting look a lot less like marketing communications and a lot more like service design.  So to put a stake in the ground, I propose that a more accurate description of modern advertising is “engagement design.”  My definition, (heavily based off Live | Work’s definition of service design) is “the design of [branded] experiences that add value through many different touch-points over time.”  The culmination of these experiences creates a “brand,” the general impression left with a consumer.

What does that mean?  The old advertising model, the one predicated on message dissemination, was designed to use multiple touchpoints to convey an idea about a brand.  In that model, a brand positioning is planned and communicated through repetition, creativity and ubiquity. That’s not what we’re talking about here.

The new marketing is about creating 360⁰ brand experiences, not messaging.  Consumers should buy into to your brand’s ideas, not just your product.  Instead of defining “Reason’s To Believe”, you need to define “Reasons To Be.”  Why shouldn’t your product be a commodity? Why does it deserve a brand (and the pricing premium that goes along with)?

The Starbucks Brand circa 2006 (click to enlarge)

The figure above from John Grant’s 2006 book, “Brand Innovation Manifesto,” looks at the totality of the Starbucks brand as a series of built up, connected touchpoints and experiences.  Its age fails to represent and credit the brand’s digital touch points as part of the Starbucks molecule.

Regardless, its insight is right on point — the Starbucks brand isn’t contained in any communication or campaign, but rather is understood through its many touchpoints.  This means that the Pizza Hut ordering app is just as much a part of their brand as the TV spots.  A Mercedes Benz financing tool as much as the print ad.  Gmail as much as those cute Google Chrome adverts.  Of course, the difference is… some of those are advertising, the others add real consumer value.  That’s not to say advertising doesn’t have a role to play, just that it should play a small part in the larger picture of brand planning.

In 2009, brands are finally warming to the digital age of branding.  It’s challenging, because the communications age of branding is coming to a close – but it’s also loaded with opportunity.

It’s what happens when consumers get so sick of seeing an advertiser’s TV commercial, print ad or shelf talker they start to tune it out, or, worse, they respond with what can only be described as primal, visceral rage.  If you’ve ever seen that “Saved By Zero” campaign Toyota used to air then you know exactly what I’m talking about.  If not, click the link, crank your speakers, and I’ll see you back here in ten minutes.  Enjoy.

Products get purchased once.  Marketing is heavily focused on that pre-purchase decision.  That’s really annoying.  It also means we, as advertisers, are spending our time and money on the people who don’t love us (yet).  If that seems counterintuitive, consider this: 90% of consumers trust recommendations from their friends.  65% say those friend recommendations make them highly or somewhat more likely to purchase a product.

The fact is, people tend to recommend brands they love.  The objective of marketing isn’t just to drive awareness, it needs to drive advocacy.  Brands need to devote energy to converting people who like them into people who love them.

So, in an age where advocacy drives business results, how do we turn “marketing” into a sustainable endeavor?  Can we design touchpoints that, instead of flaming out, encourage multiple engagements – accruing value instead of losing it?  We can.  Not by designing “campaigns” but by focusing on “engagement systems.”

The modern marketing funnel relies on the power of advocacy to generate true brand buzz and purchase intent. 90% of people trust reco’s from their friends. ‘Nough said. (click to enlarge)

Creating Touchpoints that Don’t Burn Out

The key difference is value.  The only value offered by most traditional communications is either entertainment or information.  The amount of information that can be packed into a 30 second spot, a print ad or radio spot is pretty negligible (and quickly absorbed by the consumer).  The amount of entertainment value is potentially quite substantial, but subject to diminishing returns (i.e. burnout).  I love Rocky III, but there’s just only so many times I can watch it as the Saturday Afternoon Movie before it loses its luster.  Hard to believe, but true.

Digital deployments are dynamic.  They can pull data from their users, and they can manipulate and refresh the information they send back.  They never have to lose their novelty.  They can always be updated.

Good examples of what I mean include: Nike+, the iPhone, Eco:drive, World of Warcraft, Pokémon, Kindle, and Webkins.  In each example, the marketing is built right in.  Users become part of a larger system that deepens their engagement with the product and the Brand.  The product becomes the key entry point in a social system that extends the engagement with the brand, and drives interest beyond the point of purchase.

Sony’s E-Reader may beat the Kindle on paper, but Kindle is supported by the Amazon system.  That means not only their e-store, but the adjoining social structure as well.  If you want to lend books to your friends, you’d better encourage them to buy a Kindle.  You can find similar parallels to any of the other products I named above.

Even web properties like Living Social, Facebook, or Twitter can be considered systems.  Each adds value to consumers through an extended social brand engagement vs. the traditional marking communications model.  But because of that extended brand engagement they have the potential to be much more effective.

Must all Systems Be “Baked Into the Product?”

In the above examples, the product is central to the use of the system.  But what if a marketer is trying to sell a product that already exists?  Or the category doesn’t lend itself to a social structure?

There is value to deepening a consumer’s relationship with a Brand.  Nike is a pioneer in the space with their experimentation in mobile.  Nike Goal offers Italian soccer (football?) fans a new perspective on their favorite sport, offering access to the stats, scores, and boots of the Italian Serie A league.  NikeWomen Training Club and Nike Football+ Master Control each provide lasting value by helping consumers get the most out of their workouts – what a great way to extend the equity of the brand who put out that breathtaking  “Break To Build” spot.

Cosmetics’ manufacturer Bobbi Brown designed their website to foster a connection between the brand and the consumer.  Instead of visiting the site only to browse and purchase products, users can connect in real time and receive makeup advice from professional artists.  This deepens the engagement for the consumer and builds a relationship built on trust, not on commerce.

The Bobbi Brown site offers makeup tips and the ability to connect to a makeup artist in real time.

We’ve been experimenting with deployments that hold their value for consumers.  Our Fanbase application creates a conduit between musicians and fans.  Unless the artist is a bore and the user loses interest, the application will never wear out.  For the Colorado State Tobacco Education Prevention Program we built a platform for conversation.  As long as teens have issues they want to talk about, the platform will never wear out.  They may find better places to discuss their issues, but the inherent value of the site will never diminish.

Digital media lets marketers broaden their interactions with their users — which is great news.  Consumers are simply tired of getting burned out.

Steampunk is a design style that exudes a “retro-futuristic” feel.  There are a lot of differing opinions as to the exact definition of what it is and where it began – but basically, it was inspired by the inventive and daring spirit of the Age of Steam.

This was the period of industrialization that took place approximately between 1770 and 1914.  When this technology was perfected, it allowed for factories to produce at a pace never before seen. Steam power found its way into everything such as mining, factories, steam boats, locomotives and even farms. [from source + source]

'Steamnocchio' by Fabricio Moraes (fabmoraes) BRAZIL

The “Steampunk” Term

The term “Steampunk” became popular in the late 1980’s and early 1990’s when it was coined by author K. W. Jeter to describe a series of stories he had written.  Jules Verne and H. G. Wells also often wrote science fiction stories often based in the Victorian era which may have been the kick-start to where sci-fi meets the Victorian era.  [from source + source]

Steampunk, at its core, is a design style which utilizes mechanical parts, metal and historical dress directly inspired by the machines and workers of the industrial revolution. It presents a vision, in which life is characterized by modernization and dreams of a better future through the advancement of steam powered technology.

Unlike Cyberpunk, It does not usually convey negative conditions such as disease, war, poverty or nuclear fallout.  Steampunk’s handmade appearance hearkens back to an adventurous age that offers a kind of nostalgic appeal for its fans.

Steampunk Alice in Wonderland by Sandra Chang-Adair

The Design Style

Generally it consists of Victorian style brassy metals often with an oxidized, hand-beaten look.  In fashion, goggles have often become the iconic symbol for the Steampunk sub-culture. When creating a Steampunk design you might want to include items such as: gears, switches, pulleys, dials, meters, buttons, knobs, old-fashioned light bulbs, decorative brackets, cogs, springs, watch parts, hinges, or keys.

Visual Examples

Taking a look around the web, you will find an abundance of examples that utilize the Steampunk aesthetic.  Below are several diverse examples to help kick start your creative steam engine.

1. Steampunk and Lego

On Flickr you can explore a group pool where over 600 members share their Lego creations inspired by Steampunk. Here are a few of my favorites.

LEGO MOC Steampunk Train Locomotive

Steampunk Flyer

2. Steampunk in Movies

Steampunk can also be found in some pretty popular films. All of these movies feature some pretty amazing mechanical contraptions.

Wild Wild West  (1999)

City of Lost Children (1994)

Van Helsing (2004)

3. Steampunk on the iPhone

Even the famous iPhone has seen some Steampunk fun. Below are a few iPhone apps that feel very Victorian.

Steampunk Tales - iPhone app

Steampunk Tales – Emulating the style of the pulp adventure magazines of the 1920s and ’30s, Steampunk Tales contains first-run, original fiction written by an A+ list of award-winning authors. Issue #3 contains 10 stories, most running between 4,300 to 11,000 words, for an unbelievable price. [from source]

Rotary Dial – Just in case you wanted that old school feel for your iPhone, you can download a rotary dial fashioned in the Steampunk style.

4. Steampunk Sculptures

Steampunk insects – Mike Libby over at Insect Lab creates fanciful contraptions based on real insects. He uses watch parts and individually hand crafts these stunning works of art. He also created the beetle example that is used in the top of the post.

Steampunk Dalek! – Alex Holden made this stupendous creation out of shampoo bottles and gold paint.

Steampunk Elephant – Created by Andrew Chase, this elephant is complete with some moveable joints! I can’t imagine the amount of work that went into creating this piece.

5. Steampunk in Design

Steampunk Type - Created by Alex Beltechi . You can find a step-by-step guide on how to create this effect on PSDTuts.

James Davis created this stunning Steampunk inspired piece featuring the iconic goggles.

Sam Van Olffen has an abundance of examples of Steampunk design featuring the stereotypical gears and brassy look.

More Reading

• Brass Goggles – a blog dedicated to all things Steampunk
• Wikipedia – an article about Steampunk
• NPR - Steampunk Brings Victorian Flair to the 21st Century
• Tor.com – Steampunk as a Subculture
• Steampunk Lab – a central repository for Steampunk projects
• Wired - Documenting The Steampunk Generation

What do you think of the Steampunk culture? Is it just a fad or here to stay?

Yet there seems to be one sector that has quietly been making waves: luxury brands.  Brands like Dolce and Gabbana, David Yurman and Chanel are early adopters of iPhone marketing, and, by extending their premier experiences to the “digital public,” are dispelling the notion that a luxe experience should only be available to a select few.

Historically, the high-end fashion industry has always recognized the glamour of the mobile device and had an interesting collaborative relationship with phone manufacturers.  The result to date has been limited edition, high-end handsets from the likes of Prada, Tag Heuer, and Armani.  But as the world has shifted to a highly-segmented sea of information; luxury brands have expanded their digital thinking beyond product strategy to become more digitally-minded with communications strategy as well. The iPhone gives luxury brands a platform that satisfies aesthetic and presentation needs while providing maximum potential for user interaction. In some cases, the new platform can even provide new revenue streams.

In the last few weeks, several new and interesting iPhone applications from Gucci, Jaeger-Lecoultre, and Van Cleef & Arpels have arrived in the App Store and will undoubtedly find a place in the pockets of thousands of fashion enthusiasts- and Canal Street-frequenters.

• Gucci’s iPhone application was released to support the launch of the Gucci Icon pop-up shop (conveniently located a few blocks from our SoHo office, by the way).  Supported by banner ads to drive awareness, it has been subject to plenty of attention on the blogosphere. The app allows users to browse footwear exclusive to the pop-up store, listen to music curated by application users (unfortunately, Gucci Mane has been left off the playlist), and most interestingly, compose their own beats with musical components provided by über-DJ Mark Ronson, who has collaborated with Gucci for a limited-edition shoe.

• Jaeger-Lecoultre brings the craft of watch making to life with their application. Not only can users view the collection, they’ll also have the option of six tutorials to fully engage with; you can learn techniques like assembling a chronograph mechanism, decorating and jewelling a movement, engraving, and gem-setting the case. The brand has further incentivized the app with a sweepstakes that users who perform well are automatically entered into, where the winners are flown to Switzerland to the Jaeger manufacturing factory.
• Ahhh, Paris! Van Cleef & Arpels’s “A Day In A Paris,” users are taken on a “poetic tour of Paris” via an interactive map.  Throughout their journey, the brand has provided elegant poetry to enhance the experience and set the mood. Users can also view a stylish presentation of their latest collection, as well as vignettes of Parisian poetic ballads (The app takes up a hefty 10+ MB of space, and only downloads via WiFi connection, but is well worth the space.

While iPhone and robust mobile marketing is still in its infancy, it’s safe to say that luxury brands are looking to push their brands in new directions by creating relevant new methods of brand interaction that go beyond a static product presentation, mobile commerce quick-fix, or mundane advergame that distorts the brand message. Recent industry rumblings suggest that heavyweights Salvatore Ferragamo and Giorgio Armani are developing their own applications to be released soon.  With this level of attention being given to the platform, exciting-and creative-days are ahead.

For another comprehensive overview of luxury brands in the iPhone space, check out the SlideShare presentation below, courtesy of David Sadigh:

That is the question driving the Internet’s latest vowel-deprived social platform.  If Facebook is designed to help you stay in touch with friends and acquaintances, Simler takes the opposite approach.  Instead of designing another social network where activity revolves around a user’s social circle (as defined by their “friends”), Simler’s social interaction revolves around ideas.

How it works

Allow me to explain.  Users join the site and are prompted to enter ideas, topics and interests.  Each of these inputs is captured as a “tag.”  These tags later become flashpoints for conversation.  Interested in talking about Michael Jackson?  There is a conversation thread occurring under the [Michael Jackson] tag.  Perhaps you’d prefer to expound on the ramifications of fast vs. slow zombies.  Simply add a [zombies] tag to your profile and jump into the conversation that’s already in progress.

Users can create add new tags to the Simler ecosystem at any time.  The result, though a bit chaotic, is a hybrid between a BBS, a message board, a chat room and a social network.

Simler's tags aggregate to form a snapshot of a user's interests.

The social networking aspect kicks in as a user continues to use the site.  Every [tag] a user joins is added to their profile.  Over time, the system has a pretty good idea of what you’re interested in.  This list of interests is a far more accurate self-portrait than the usual posturing that occurs on user-created profile pages.  (Are you REALLY an avid Shakespeare fan, or did you just read Hamlet in high school?)

Users are matched based on shared similarities

The Simler system uses this data to find other users who are similar (Simler?) to you.  Presumably, you’ll both have lots of things to talk about.  Still, amassing a group of “friends” isn’t quite the social status maker it is on other platforms.  Having a “friend,” really just means that that user’s comments will show up in your ‘homestream.’  It’s really less of a “friending” system and more of a flagging system.  “This user seems interesting and I would like to hear what they have to say.”

Who are you?

Social interactions aside, what fascinates me about the Simler platform is its unique approach to understanding and building a user profile.  There have been no shortages of attempts to profile users on the Internet:  social network profiles, Twitter analyzers, demographic surveys, and more.  Simler’s approach, constructing a profile of interests from on site activity, feels the most resistant to user manipulation and seems likely to paint a fairly accurate portrait of the user.  Certainly matching users with similar users is a fun use of the data, but I’m wondering how else they could harness their data.  What could a site do with Simler Connect?

The site just launched last week and is still experiencing growing pains.  Things like how to handle multiple threads on the same topic or managing conversations that span multiple topics?  What is the best way to follow conversations and find new ones?

Regardless, this is one platform to keep an eye on.  Those monkeys have some big ideas.

I can’t be definite, but I’m pretty sure I made my Mom go into labor 7 weeks early, just so I could have my birthday so close to Halloween. What’s not to love about dressing up as your favorite character and receiving free candy to do so?!

If you’ve been keeping track of some of our design work on the blog, you’ll know I did some work on a pretty spooky rendition of Hansel and Gretel. Since I had already played with a spooky “photo-manipulation” style earlier this month, I wanted to try something a little bit different here.

Lately, I’ve been a big fan of infusing real world elements into digital design. I found some torn/shredded construction paper and thought that it lent itself well to a spooky landscape. I decided to create a crooked little town in Illustrator to sit on the top of my construction paper cliffs, adding a few haunting elements here and there.

What I love about Halloween, it that it’s not always about the blood, guts and gore. Sometimes, it’s what you don’t see that makes a scene interesting and spooky. There isn’t much detail in this wallpaper, but I think it leaves just enough to the imagination.

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