Facebook Swallows Another Company Whole

By Embra King

This week Facebook has announced the purchase of the location-based company Gowalla for an undisclosed amount. This comes right around the time that Foursquare (The largest LBA provider) announced that they have just recently exceeded a user base of fifteen million.

Location-based apps are only a year or so old and are growing thanks to the explosion of smart phone owners. With the purchase of the Texas based company, it appears that Facebook has big plans for what these types of apps can bring to networking, marketing and social reviews.

Facebook's biggest challenge is to increase the usage of these apps. While Foursquare boasted about their fifteen million subscribers, triple that of what they had at this time last year, a recent study has found that only about 2% of the subscribers actually use the product at least once a week.

It will be interesting to see if this most recent purchase is more of an acquisition of Gowalla's talent, or if they have plans for integrating this new app into Facebook’s already large social networking toolbox.

Commercial Art

By Embra King

Call me crazy, but I love commercials.

I love them between shows, on billboards and in magazines. When I was young, I used to go over to my friends' houses and spend hours looking through their magazines, no matter what the subject. Sure I would read the articles sometimes, but mostly I was admiring their layouts and ads that filled up most of their thin pages. When I go to the movies, I always make sure I get to the theater early, as to avoid missing the previews. If it wasn’t for those wonderfully crafted teasers before every show, I could hardly justify spending the twelve-dollar ticket price.

No, you didn’t read any of that wrong, I enjoy something that most Americans seem to openly grumble about. I just think it is because we are looking at things all wrong.

Advertising, when done well, is a wonderful art form that folds creative design, language, and economics into this beautiful, multi-layered piece of work. Companies and organizations of all sizes hire artists and writers to create powerful messages and a visual presence for their cause or product. Advertisers create beauty where there would only be grey. Ad agency’s are taking problems and solving them with art.

Not only do I find commercials and advertising to be an ongoing work of art, but I also enjoy them for chopping up TV shows. To me, most shows need commercials. A killer slowly opens the door to find the hero asleep and helpless in bed when suddenly, a commercial break. We are left on the edge of our seats. We cry, “No not now!” Our bodies tense up in anticipation for what lies at the end of the commercial block. Sure, if you have seen the commercials a hundred times before this time might be better spent using the restroom or grabbing a bowl of ice cream, but for me there is something special about seeing what others created in the spaces that companies have created for them.

Imagine a world without advertising, commercials, or branding. Sure, it is awesome to get out into nature and be surrounded by nothing but mountains and trees, but I can’t imagine a world in which cities aren’t filled with commercials, filled art. I think we all should take a closer look at the next commercial you see and just reflect on how many artists, writers, and salesmen it took to create the piece.

Check out the documentary Art & Copy to get a glimpse into the crazy world of advertising. It can be found on Netflix.

To Attack or Defend?

By Embra King

The common phrase heard in football locker rooms and military camps "the best defense is a good offense” seems to be well respected in their respected fields. But does this ideology work when it comes to advertising, is it really better to attack another's product than to promote your own? Samsung seems to think so and without naming any names challenges the iPhone and its apparent dim, Starbucks drinking, following.

The commercial, which aired last week, depicts long lines of bohemian Apple phone users standing in line waiting for the iPhone 4s. As they grumble about the “sketchy battery” and lack of physical changes to the phone, they catch a glimpse of preppy people not waiting in line using the already released Samsung Galaxy S II.

Near the end, Samsung tries to pitch that they have a bigger screen, and it runs on 4g network. However, the only feeling I come away from my multiple viewings was how silly it is that Samsung has narrowed down the iPhone user into this arty hipster, apparently blind to the fact that other phones are out there.

Attacking the completion is nothing new in the wild world of advertising. Audi and BMW have always taken stabs at each other resulting in things such as this billboard campaign. Apple also ran its own attacking campaign, the famous “I am a Mac, and I am a PC” stint. It is a tactic that politicians utilize many times over: “Vote for me because the other person is awful.”

As a consumer, I am more drawn to seeing why I should buy a product, not why I shouldn’t buy the other guy's. To me, it seems to take away from your product. If what you're selling is worth talking about, than talk about it. Sure, it makes for some fun, witty advertising, but does it really help move your product?

The fact is, Samsung is jealous; no one is waiting hours and hours to buy their phones, a fact that they poke fun of in their commercial. Apple has a huge share in the phone market thanks to their branding power and creation of beautiful easy to use products. With all this being said, I do like that Samsung has tried to take on the giant that Apple has become.

I just wish they had shown a little more backbone and mentioned the phone by name.

Logo Issues

One of these logos is for a headphone company, the other a blog for moms. A little tricky to decide which is which when they are next to each other; imagine trying to do so if they weren’t side by side.

A company’s logo, once established, is much more than a picture or set of text; it is layers of brand recognition that are available to a consumer with a single glance. When you see two golden arches you, immediately know it is McDonald's with their Big Mac’s, golden French fries, and that McRib sandwich that seems to not want to die. We have thousands of memories, experiences, and opinions that are all linked to this single logo.

It is like this for thousands of brands across the world; they build a huge brand that can be fit into one single image. It makes advertising much more compact. We do not need McDonald’s mission statement stamped on any of their ads, or the side of their building; we just need to see those golden arches, and we all know exactly what is being offered.

But what happens when your logo looks almost identical to that of another company's? Well, for hip hop artist Dr. Dre’s headphone company (Beats by Dre), and Disney’s newly acquired mommy blog (Babble), this has seemed to happen. I came across this by chance; when I thought that the ad banner on my computer was for a new set of headphones and not a blog that features articles about vegan Thanksgiving meal ideas.

The point I am trying to make is that, when you're designing a logo, you want to make sure there is nothing out there that can easily be mistaken for yours. Maybe these two companies have such different markets that this will not be an branding issue, but for me it was. I was not able to see the Babble logo and instantly think, “That’s a website for women to go and learn about healthy foods for their children” or even, “What logo is that?” I was thinking about over-sized headphones and west coast hip-hop.

The Power of Community

Last week AT&T released a new commercial entitled “Responsibilities”, a thirty second piece that plays on the idea that everyone in a typical office uses their smart phone for everything but actual work. It has received an explosion of views, about 700,000 YouTube views in just the first four days of being online. Now while this commercial is funny, its popularity doesn’t stem from its humor, or the quality of the product it is selling, but rather it is all the attention it has received on Reddit.com.

Nate Dern was making his commercial debut after three years of auditioning and decided to share his success with the community of Reddit. He posted his video on the site last Monday and to his surprise gained an explosion of views over the course of that first day as hundreds of people “up voted” the video promoting it the front page for all to see. People seem to have fallen in love with the idea that one of their own, a fellow Redditor, had made it into a TV spot, and all he says is a simple “Huh?” As this blog post was being written, Nate Dern’s commercial debut has 2882 total “up votes” on Reddit and was at one point the number one link on the websites front page.

What this phenomena is demonstrating is the marketing power that third party post sites are capable of producing. The AT&T commercial is not the first company to benefit from being posted on Reddit, however.

The spread of Chuck Testa’s taxidermy commercial and the video of Judge Williams beating his daughter exploded into the homes of millions, thanks to the community voting system of Reddit. The site has become a powerful tool for spreading news, images, videos, and complaints about companies or services. According to businessinsider.com, Reddit had 1.8 billion viewers in the month of October alone. With this kind of viewership, companies would love for their products or services to get some percentage of this attention.

One reason that Reddit is a powerful tool for spreading information in such a rapid manner is the fact that it does not create exclusive social circles like Facebook or Twitter, but instead lets anyone post and everyone view these posts. Once something is posted, anyone can view it, and those who have created a free account can vote for or against the post. The more positive votes a link receives, the closer the post will move towards the front page.

The problem with all of this, however, is that the products in the commercials are not the ones benefiting from all the publicity; it is the actors themselves. Sure, thousands of people have viewed the commercial, but at the end of it, are people thinking I want that phone, or “Man, well executed, huh?" The millions of views that Chuck Testa’s first commercial received has not translated into increased sales. It has, however, spawned many spin-off videos and started a small demand for Chuck Testa t-shirts. The brand loyalty in this case is to the Mr. Testa and Mr. Dern, not the product they are selling. People online are pushing for Dern to be featured in a second commercial with AT&T and maybe this time with a couple more lines.

What advertisers need to learn is how to harness the communal benefits of sites such as Reddit or Digg, to create attention around a product much like it has for people. The static advertising word that Don Draper lived in is dying, and we are move into a marketing world run by the consumer. It is becoming apparent that companies need to figure out the best way to harness this communal power. It has shown its ability to create an almost cult following for people such as Nate Dern and Chuck Testa, but its potential for creating such a buzz around a product is yet to be tapped.

12 Critical Technology Mistakes Small Businesses Make

By Brian Roach

Have you ever had that ominous hunch that something bad is going to happen – and then it does? Unfortunately, this gut-wrenching feeling is far-too-familiar for small businesses facing the complexity of information technology.

By its nature, IT is a confusing, expensive, and forever-changing animal. Hardware and software sometimes become obsolete within months, let alone a few years. And thanks to budget restraints, many small businesses fall into lethal traps like hiring inexperienced personnel to handle their IT. But it only takes a single mistake to lead to a catastrophic loss of company data, and starting over can be heartbreaking.

Fortunately, it doesn't have to be this way. There are many ways small business owners can learn from the mistakes of others. As a veteran IT professional on the front lines each day, I've listed the top 12 most common errors that small businesses make with IT.

Mistake #1: Using non-functional backup software

Many small business owners assume that just because hardware or software is present, data itself is protected. This is a terrible assumption. Just because a server has an appendage that looks like a tape spooler attached doesn't mean that tape spooler is actually working. At a bare minimum, small businesses should perform testing on backup software every two months. It is far more costly to recover lost data than to perform the proper testing of backup systems.

Mistake #2: Using mass-market equipment to run business-class tasks

Using mass market equipment to run business operations is a fatal error in judgment. That $49 router from Best Buy will simply not perform like a commercial-level one will. The products created for business are expensive because they're designed to keep a company up and running at all times. Many small business owners cut corners just to keep their budgets down, but using inappropriate equipment can cause an extraordinary loss of manpower and resources.

Mistake #3: Overextending the technology life-cycle

That five-year-old PC your receptionist is using probably won't hurt your business when it dies. But if the 10-year-old server under her desk does, it can cripple your entire company. All technology has a set life-cycle. Manufacturers call this life cycle MTBF, or mean time between failures. Any IT person worth their salt can see how many errors hardware is making and judge when it needs to be replaced. Servers and PC hardware, in general, have a lifespan of about 3-5 years. This lifespan depends on how much this equipment is used, but if you're not backing up your IT elements or replacing them often enough, you should start by doing it now.

Mistake #4: Having a "set it and forget it" mentality

This is perhaps the most common error small businesses make when building their technology infrastructure. Make no mistake: IT hardware and software requires routine, regular maintenance and adjustment. Think of your IT infrastructure as you would an automobile. If you forget to put oil in your car, your engine will die. Servers and software need continual care so they can perform at optimal levels. As a small business, you should hire someone who can see the Big Picture. If you don't, the question becomes not if you'll have a problem, but when.

Mistake #5: Buying new software while skipping hardware upgrades

This problem stems from the over-marketing of new upgrades from software manufactures. Each company wants you to upgrade to the latest version of software--some even make it impossible for you to function without these upgrades. But many of the newer software platforms require you to upgrade your hardware simultaneously. Many small business owners upgrade their software without even thinking about the hardware, which not only could impact other systems but cause catastrophic performance problems for your overall IT ecosystem.

Mistake #6: Going cheap, regardless of the consequences

Everyone knows that IT--from new software to hardware implementation--is expensive. But not too many small business owners know why. IT elements often cost more because they require a migration from another system or the completion of complex tasks to work optimally. Unfortunately, this is why small businesses, time and again, find themselves in an untenable situation: they choose the cheapest software only to find that some extraordinarily important piece is not included in the purchase. So conduct your due diligence. Buying IT equipment is just like buying a house--and you should only be comfortable when quality workmanship is involved.

Mistake #7: Forgoing user training

This is a problem that's less about equipment and more about human nature. Training is an absolute must for small businesses. Without the proper training on software or hardware, well-intentioned equipment purchases are useless. Small business owners should train their employees on all IT elements whenever possible. A well-trained staff and a solid set of IT equipment will save your company time, money, and plenty of headaches. Preserve your investment by keeping staffers up to speed.

Mistake #8: Working without a plan

Planning out IT initiatives or upgrades is a task that should be done, at the bare minimum, once a year. Many companies do this annually just to line up their equipment with pending corporate initiatives. This is a great practice. Mapping out your technology path can impact your entire business. Each small business should not only budget for new hardware, software upgrades, or other technological elements, but for additional manpower and technical support. If you plan ahead, that software upgrade or mandatory hardware migration will no longer jump out from nowhere.

Mistake #9: Skimping on security

If you do one thing after reading this article, it should be this: take your security seriously. Many small businesses find it inconceivable that someone would target their business or try to steal their valuable data. Unfortunately, this is the furthest from the truth. Security has become the number one issue for IT environments in the past few years, thanks to online scams, vulnerability in software, and networks using improper architecture. As an IT expert, I've come across small business systems that are so vulnerable, their accounting data is readily available on the Internet. Other systems have no anti-virus software or no malware protection, but plenty of insidious spy ware working overtime, capturing everything from login names to passwords. At some small businesses, I've seen criminals use open ports to hack into security camera footage--just to plan a robbery. Spam, malware, and viruses pave the way for a devastating security breach. Don't let it happen to you.

Mistake # 10: Using under-qualified people for IT support

On its face, leaving a friend, neighbor, or relative in charge of your IT is not necessarily a bad move. But assuming they're capable of such responsibility just because they can download and install software is a bad move. An under-qualified person can never give you good IT advice. Because they've fallen into this trap, many small businesses actually end up spending more money just to correct the mistakes of an under-qualified IT person. If you need outside support for your IT environment, always ask for certification and credentials. A good IT person is always trained and certified to work within the complexities of an IT environment.

Mistake #11: Not knowing what you have?

Ever wonder what's in your IT room? Well, you should. Sometimes small business owners are so busy running their shops that they forget to count their software licenses or keep inventory of how many PCs they have. While countless businesses played it fast and loose years ago, one can't afford to do that now. Strict asset management requirements--straight from the U.S. government--demand that you keep tabs of what you own. The companies of today that wave off asset management may find themselves unable to get a loan or other financing. Asset management is critical. Conducting your first inventory, especially if you've been in business for some time, may be an expensive task. But it will save you much heartache in the long run.

Mistake #12: Using pirated software

Software licensing rules can seem quite unfair. Many small business owners wonder why they should purchase more copies of software when they can simply use one for all of their machines. With older software, you could probably get away with this. But with today's ultra-sophisticated software, it's simply a losing bet. Some software companies are cracking down so hard that when you download updates, it alerts them when the software has been used more than once. A company can disable your software completely at just the click of a mouse. Even worse, you could end up facing fines of upwards of $100,000 from the Business Software Alliance. Keep your software licenses up to date, and you'll never find yourself in this situation.

Many of the problems tackled here can easily be remedied by using a qualified IT professional. Many IT companies now provide flexible, affordable packages that cover maintenance, support, and the overall health of your IT environment. So take your time and do your homework. Plan ahead, spend wisely, and hire qualified personnel. The money you spend on IT in the short run may feel like an incredible investment at the time, but it most certainly will pay off in the end.

Google Shows Circle Counts for People In Search Results

By: Chris Crum

Lately, Google has been placing a lot of emphasis on the importance of who you are on the web. That’s why they want you to use your real name on Google+ (or more broadly, your Google Profile).

This thinking certainly applies to search. This year, Google introduced authorship markup, which helps Google associate various content from a person with that person in search results, and ultimately gets that person’s profile prominence in Google search results. If you ever see a little image of a person off to the side of a search result, which is clickable (leading to that person’s profile), this is likely what you’re seeing.

It’s good for authors to gain exposure, and it helps readers establish some level of trust by simply knowing where a result is coming from (regardless of whether or not they actually trust any specific author). In fact, Google is so concerned about this, it doesn’t even want authors to have profile pictures that are the least bit unprofessional. For example, I know a guy who was using a picture of himself in his Halloween costume for his profile picture, and a Googler actually contacted him and asked him to change it. There was nothing bad about the picture, they just wanted a regular picture of him for his profile pic, presumably so people wouldn’t see anything goofy in the search results, and hurt the perception of Google’s rankings, even if the content it showed up next to was perfectly legitimate.

Google recently posted a pair of videos explaining how to implement authorship markup, if you need a bit of guidance:
It would appear that Google considers how many people you have in Circles on Google+ to be some indication of who you are now.

The Next Web says an unnamed source confirmed that the next step of Authorship Markup is to show the number of Circles you’re in on the search results pages. You can already see it in action for some people.

This actually makes the whole Circle limit thing a little more interesting. If you can only have so many people in your Circles on Google+, you’re not going to want to add just anybody right? In an article this week, we called for Google to get rid of Circle limits because it limits our access to information through Google+, but is this the mindset Google has here?

The bigger names on the web are going to have more connections, so if they can’t put every one of them into a Circle, they’re only going to want to put their top connections in there. I don’t know if this is the way Google is looking at things, but it raises an interesting point, especially with the attention that Klout has been getting (and now its new competitor Kred).

While we don’t know that the number of Circles you are in is a search ranking signal, it seems very likely. Remember, when Google was talking about authorship markup, they said they want to “get information on credibility of authors from all kinds of sources, and eventually use it in ranking.” It seems pretty logical that circle count could play a role.
If I’m wanting to get more Google search respect, I’m trying to get in more Circles.