Chasing the crowd
Why you should aim to stand out, not emulate others | Issue № 29
This week / What’s new? | Why does it matter? | What’s next? | What else? | Quotable | One more thing
This week
Read on to learn why…
① Social media look increasingly the same because they all emulate each other.
② You need to have the courage of your convictions and know your purpose.
③ The best brands stay the course; they’re clear and consistent.
④ Efforts to re-establish access to EU markets have failed so the UK is deregulating.
⑤ The tech that powers Bitcoin holds far more promise than the cryptocurrency.
⑥ Media consumption habits are returning to their pre-pandemic levels.
⑦ The best writing is sharp and to the point.
This week / What’s new? / Why does it matter? | What’s next? | What else? | Quotable | One more thing
What’s new?
The Financial Times reports that Adam Mosseri, the head of Instagram, posted a video this week in which he announced that the Facebook-owned app will focus on video.
① In short:
“‘Video is driving an immense amount of growth online for all the major platforms right now and it’s one that I think we need to lean into more,’ said Mosseri. ‘We are no longer a photo sharing app.’”
“Instagram is also prioritising private messaging, ecommerce and influencers, instead of its original mainstay of friends posting photos in a feed, Mosseri said, as he pointed to ‘huge’ competition from ByteDance-owned TikTok.”
“Social media companies are increasingly seeking to reposition themselves as destinations for entertainment or shopping, which can be easier to monetise and less problematic in content moderation than individuals’ personal posts.”
This week | What’s new? / Why does it matter? / What’s next? | What else? | Quotable | One more thing
Why does it matter?
I think it’s admirable that Mosseri communicates directly with users of his product via video and flags upcoming changes to them. That kind of transparency is great for building trust and a sense of community. Sadly that’s the only compliment I can pay him because I believe the thinking behind his message is fundamentally flawed.
Competitive analysis is valuable, of course. And, yes, there is a need to ‘feature-match’ with direct competitors - you see that most clearly in how Android and iOS or Windows and MacOS develop, they’re continually ‘borrowing’ each others best ideas. But this isn’t that.
② Rather than having the courage of its convictions and trusting in what used to make Instagram unique - beautiful photography - the company is now simply chasing the crowd. Watch how often Mosseri names his competitors, describes what they’re really good at, then talks about how Instagram is going to ‘lean in’ to those same features. It’s the everything-but-the-kitchen-sink approach that Facebook adopted too. It didn’t stop Facebook’s numbers trailing off and it won't help Instagram either.
People do want video - but TikTok and YouTube have them covered. People do want messaging - but there is a plethora of excellent options already, Snapchat is the tip of the iceberg. And - perhaps more importantly - people don’t want shopping or more brands and influencers (call them Creators if you want, Adam, we know who you’re referring to) dominating their social feeds - despite want Instagram’s CFO might hope against hope.
People love photography though and there isn’t currently an app dedicated to helping them share beautiful photos with one another. Perhaps there’s a lucrative niche there for you, Adam?
This week | What’s new? | Why does it matter? / What’s next? / What else? | Quotable | One more thing
What’s next?
Take action
Steve Jobs said it better than I ever could:
“This is a very complicated world, a very noisy world and we're not going to get the chance to get people to remember us. No company is. So we have to be very clear about what we want people to know about us.”
Of course, keep an eye on your competitors. Of course, be close to your customers and understand what they want. But use that knowledge to inform how you differentiate yourself. Don’t fall into the trap of running off in different directions to emulate what others are already doing well.
③ Know what your purpose is, what you stand for, how you’re different - better - than other brands. Then double-down on that. Stay the course. Be clear. Be consistent.
Get help
I’m looking for a full-time, in-house role but in the post-Covid age of depleted marketing budgets and remote teams with skills gaps, many organisations need marketing and communications support that’s agile, flexible, and risk free. That’s why I founded WhatsNext Partners.
Whether it be as a permanent member of your team or with 'on demand' support, let me know if you need my help.
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This week | What’s new? | Why does it matter? | What’s next? / What else? / Quotable | One more thing
What else?
Three other articles that are worthy of your time.
FINANCE
Sunak unveils post-Brexit City reforms
④ Efforts to re-establish access to EU markets have failed so the UK is deregulating.
“The chancellor on Thursday set out details of proposed changes to rules governing stock market listings, stock, bond and commodity trading and insurance, underscoring the UK’s willingness to split from the EU rule book it had once helped write.”
“Among the EU rules the UK plans to scrap is a standard which determines where investors can trade stocks, known as the share trading obligation. The EU’s application of the standard forced the business out of London in January but it was originally designed to stop banks from trading their customers’ deals on their own trading desks, bypassing the stock exchange in the process.”
“It also said it wanted to scrap an EU rule capping the amount of trading that investors can execute on private marketplaces known as dark pools.”
TECHNOLOGY
Banks turn to blockchains to reform costly bond market
⑤ The tech that powers Bitcoin holds far more promise than the cryptocurrency.
“Blockchain — the digital ledger that records and verifies transactions and underpins cryptocurrencies such as Bitcoin — has the potential to streamline the process of selling new debt, leading to substantial cost savings, bankers say. Over the life cycle of a bond, using blockchain technology could save at least 35 per cent of the costs associated with issuance.”
“Use of blockchain could also cut down the number of intermediaries involved in the process — for example the bonds would no longer need to be registered with a central securities depository.”
“Blockchain also offers a way to easily locate current holders of bonds — often a tricky task in the relatively fragmented world of fixed income where bonds are often traded directly ‘over the counter’ rather than on centralised exchanges.”
MEDIA & MARKETING
As lockdowns lift, media firms brace for an “attention recession”
⑥ Media consumption habits are returning to their pre-pandemic levels.
“The average full-time worker gained about 15% more spare time during the pandemic. The biggest share of the extra screen-time went to television: video-viewing rose by about 80 minutes a week in rich countries. Video-gaming saw the biggest proportional jump, as people devoted an extra hour per week, or 30% more time, to games. Listening to music edged up by 5%, while podcasts and audiobooks rose by nearly a quarter.”
“As spare time dries up, the question is which of these newly acquired habits will stick and which will be dropped. The single biggest new media habit to be formed during the pandemic appears to be gaming. And unlike other lockdown hobbies, it is showing no sign of falling away as life gets back to normal.”
“The changing shape of post-lockdown life can also be seen through social media. People spent an extra 40 minutes a week on social networks last year, as well as an extra half-hour consuming news, sometimes via social-media platforms. In April this year Facebook said that the increased levels of engagement it had seen in 2020 were subsiding as lockdowns eased.”
This week | What’s new? | Why does it matter? | What’s next? | What else? / Quotable / One more thing
Quotable
Brooke Masters, the FT’s Chief Business Commentator writing about the Financial Conduct Authority ordering Binance to halt all regulated activities in Britain:
“What’s the point of making a killing in bitcoin if you can’t spend the loot?”
This week | What’s new? | Why does it matter? | What’s next? | What else? | Quotable / One more thing
One more thing…
⑦ NBC News’ Digital News Editor Patrick Smith reminded all marketers on Tuesday: always be sharp and to the point.
His tweet brings to mind my favourite Mark Twain quip:
Off cuts
The stories that almost made this week’s newsletter:
🏠 Monday: UBS to let most staff mix working from home and office permanently
🌍 Tuesday: JPMorgan agrees to purchase values-investing fintech OpenInvest
💰 Wednesday: In the US, high net worth individuals’ wealth grew 12.3% in 2020. Here’s what drove it
👮🏻♂️ Wednesday: Robinhood Fined $70 Million For ‘Significant Harm’ To Customers Ahead Of IPO
🏹 Thursday: Robinhood targets valuation of at least $40bn in IPO
🤑 Thursday: Crypto trading platform launches for institutional investors
👴🏻 Friday: The investment age divide is not as wide as you think
