VOICE ACTIVATED SEARCH WILL CUT BOTH WAYS: Over the last several months I’ve written extensively about how voice-enabled connected devices will transform Search as we know it. Instead of typing a word or phrase on a screen and getting seven top page results back from Google, we’ll speak a sentence into a device and our AI-enabled digital assistant will respond with one answer. Along with this change comes one very big problem and one huge opportunity for brands, as explained in the attached Business Insider link. The problem is something called Autonomous Shelf Risk. Think about ordering a commodity item like toilet paper through your Echo. You’re unlikely to say “Alexa, order more Charmin”, and instead will say “Alexa, order more toilet paper”. The industry still needs to figure out which brand gets the green light for the non-specific toilet paper order. On the flip side there’s a huge reward for brands who can master the selection process through a phenomenon called Incidental Loyalty. Once a brand is selected in our toilet paper search example, they become the automatic refill option every time toilet paper is reordered until another brand is requested by name. You can imagine how valuable this will be to brands. Important stuff to think about as we enter the Age of Voice.
CONSULTANCIES CREATING AN “EAOR” SWIM LANE: Yesterday Maserati announced it had selected the business consultancy Accenture as its new Engagement Agency of Record (EAOR), as reported in the attached Campaign Live link. This is the continuation of a trend in which consultancies are replacing traditional agencies for brand marketing work. The twist with this example is that Accenture will be tasked with running Maserati’s entire “engagement funnel” for potential and existing customers. Publicis is still being retained by Maserati for traditional media work, but you can be sure that every dollar Accenture gets to manage the engagement process will come directly out of their traditional media budget. Get ready for more EOARing in the months ahead.
WORK HARD, NO MATTER HOW SMART YOU ARE: You may have heard of a guy named Daniel Schwartz, who rose to become the CEO of Restaurant Brands International (parent co of Burger King, Tim Horton’s, Popeye’s, etc.) when he was just 32 years old. Now, at the sage age of 36, Mr. Schwartz is providing a glimpse into his business philosophies. In a fascinating Business Insider interview Schwartz explains a question he asks in every interview. “One question I ask is, ‘Are you smart or do you work hard?'” Some higher level candidates, who are confident in their abilities, usually answer with smart, and even go so far as to say they don’t need to work hard because they’re so smart. Daniel Schwartz disagrees. You need hard workers at every level of a company in order for it to be successful. By hiring employees who put hard work first, and then hopefully have some born-with smarts, you end up with a team of overachievers. Great advance from a young but wise business leader!
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