Markets are conversations…


…so declared the writers declared of The Cluetrain Manifesto back in 1999. It’s still enormously relevant and important, even though many of their predictions haven’t yet come to pass, and the old ways of Business As Usual have proved remarkably resilient. But broadband technology and the growth of social media in the last 2-3 years is now providing the environment for these conversations to flourish and grow.

Markets are conversations. Barter economies were based around individuals trading with each other to exchange goods. Information spread through word of mouth. Wise men kept their ‘ear to the ground’, and those with the best networks could command the best prices and biggest markets.

In recent times these inter-personal conversations were drowned out: new technology and communications media enabled those with money and resources (companies and their brands) to shout louder and for longer. Advertising and marketing campaigns became monologues; broadcasting messages from brands to persuade rather than engage or provoke any response besides purchase. They effectively overtook the individual’s ability to conduct conversations.

Now the technology has developed further, and is giving those abilities back. News spreads fast; review sites and social media enable strangers to recommend or condemn brands and products. In some companies and sectors faster than others, this is and will require a fundamental change of approach.

Many companies still “BAU” (Business As Usual) as an everyday term, which seems to imply that they are trying to preserve what has gone before, and everything else is perhaps “nice-to-do”. The very use of language is conservative and incrementalist, suggesting that change will only come when it arises from the pre-existing models.

Marketing Sherpa has recently published research indicating that Social Media and Search have overtaken email spend, and already significantly exceed display advertising. Companies are having to work differently…

It ain't about advertising...

It ain't about advertising...

However, many are still clinging to their historic approach to media. They claim to want to engage their consumers more directly and personally, yet they continue to spend a tiny fraction of their time and effort on this. They prefer to spend money advertising in traditional ways through traditional channels rather than hiring staff or systems to engage in conversations with their customers directly. They seem to fear the lack of control and certainty that comes from interacting with individuals, rather than the comfortable assumption that consumers are all the same. Well, we’re not.

Technology is giving people back the ability to engage each other more directly. There’s more truth in The Cluetrain Manifesto’s 11-year-old declarations than in most marketing reports published last month. We’re starting to help some of our clients learn how to face the future, and it’s already beginning to demonstrate results…


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