Graph search is Facebook’s attempt to snatch key territory away from Google and align itself more closely with its rivals; the specialised social networks people use for work and play. But what will Graph actually mean for Facebook users? And what benefits does it offer – if any?

Graph search is a more complex search than Facebook’s normal search function (which is pretty poor, to put it mildly). When Graph is out of beta, users will be able to search Facebook for specific combinations of keywords and demographic data to get more accurate, personal search results. The results are largely based on the information Facebook users have voluntarily given to Facebook; their preferences, personal data and connections.

In a way, Graph is a step towards Siri for the web: an intelligent realisation of natural phrasing, re-mixed as a search tool for the individual. For example, Graph really comes into its own with image searches; not only can Facebook users search for images by date or location, but using almost any identifier – including the age, gender and relationship status of the people in the pictures. This could, in time, turn Facebook into a massive recruitment site or dating hub, without any significant changes to the core features on the site.

Facebook is looking to satisfy its shareholders with better monetization; ads in search (or sponsored search) is a perfect way to bring in more revenue, because search powers just about everything we do on the web. For Facebook, the one thing they need to do is be mindful of their users’ preferences, and stay away from slipping in any sneaky privacy clauses. Instagram’s recent change in policy, and the massive user drop-off that followed, served as a warning to Facebook: take monetization too far, and users will vote with their feet.

One thing Facebook isn’t doing is offering up search results from the web, and in that respect, Google can sleep easy. But this is likely to be due to privacy concerns rather than Facebook’s own conscience as a company. Instead, Graph search is more about people and connections, likes and dislikes – the kind of data that the entire social network is built upon. Although Google’s tried to do this with +1 data from Google+, it simply doesn’t have the same vast catalogue of data to draw upon, making it less able to draw on its users’ experiences.

With Graph, Facebook is trying to leverage one person’s experience and use it as a recommendation for the next person. By doing so, basic searching becomes personalized and valuable. But what if your friends don’t have anything to recommend in your search category? In that case, Graph could turn out to be a damp squib – and you’d probably go right back to searching with Google.

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Claire

In the last two weeks, Lance Armstrong admitted something the world thought they’d never see him admit. He confessed to some of the most sophisticated doping programs ever seen in sport, and he did so in the full glare of the world’s media on the Oprah Winfrey show.

For Armstrong, the Oprah confession will mark a sea change in the way people perceive his brand. During the height of his career, he was known as a passionate, defiant and headstrong individual. Now, the tables have turned – and the man who sued so many of his critics has opened himself up to scrutiny from all sides.

Armstrong has a fortune of more than $100 million, built up over more than a decade. He made his first professional appearance as a cyclist with Motorola in 1992; after beating cancer, his sponsors included the US postal service. Now his former teammate is trying to convince the US government to back a lawsuit against him. If they were to win, the payout would almost equal Armstrong’s entire fortune.

Plenty of other companies also have a right to reply. From British newspapers to the Australian government, various organisations have paid money to Armstrong over the years – either as a result of a lawsuit, or for sponsorship. And then there’s the small matter of his Tour de France prize money; the awards may have been stripped from him, but he still holds the $12 million paid to him by the French cycling competition. Perhaps not for much longer.

For more than seven years, the US press has toyed with the idea of Lance Armstrong the politician – he himself has never ruled out the prospect of running for Governor of Texas, and he has friends in high places that would have endorsed his bid for power. However, he later said he wasn’t interested in such a demanding role, and ploughed his post-cycling energies into running his coffee shop and bike retail store.

Can there even be an Armstrong brand? The shamed sportsman has already been asked to disassociate himself from his own Livestrong Foundation, and that suggests that his name really isn’t worth much at all. Any integrity in his own name, and what his name stands for, has all but disappeared. Even pre-Oprah, when his fans could have given him the benefit of the doubt, the rumours never went away, and never really would have. Now, it’s going to be up to his fans to take his apology at face value – if they will ever forgive him at all.

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Claire

Twitter is branching out – and this time, it’s not just adding photo filters, or changing its feed contents. The network has come up with a brand new service that brings the power of video messaging to the social web.

Vine is a new video service launched by the makers of Twitter last week. Instead of focusing solely on text-based content, Vine is a timeline based around short videos (six seconds or less in duration). To record, the user simply holds their finger on the screen – to stop recording, they lift their finger. Users can keep recording, tapping and releasing, until their six second movie is complete.

Although similar to animated GIFs, Vine videos do have sound and are a little easier to share than animated pictures; videos can be viewed by other Vine users or posted onto other networks. The resulting videos are fairly similar to Cinemagram (a video app unrelated to Instagram, but that was almost certainly inspired by the photo app). In terms of its user base, Vine can scan a user’s Twitter followers to discover contacts to follow within Vine; the two services work nicely together, but they are separate in practice. Twitter is obviously putting time and energy into growing Vine into an independent social network.

Twitter also probably hopes that of the spin-off benefits will be the disruption to Instagram. Reports over the last few weeks suggest that many Instagram users have simply stopped using the photo sharing app; some have defected to Flickr in the light of privacy concerns and Instagram’s increasingly obvious relationship with Facebook. By branching out into video, Twitter could inspire disillusioned Instagram users to try a new medium and explore a new type of content production.

Marketers, too, will relish the opportunity to get to grips with a new type of content and the new challenges and opportunities it brings. Just as Twitter’s 140-character limit forces users to be creative and succinct, so Vine’s six-second video shorts could inspire a new wave of clever mini-adverts delivered over the social web. Ryan Sommer, writing for Econsultancy, labelled Vine “the future of content marketing” – praise indeed for a social app that’s barely one week old. Daina Middleton, CEO of Performics, said the six-second limit for videos would be the perfect length to satisfy a mobile user’s (extremely short) attention span.

Perhaps the best thing about Vine is that it complements Twitter but is independent of Twitter. It’s a genuinely new social network in its own right. People who don’t see the point in tweeting could be drawn to a more creative platform, and there’s plenty for marketers to get excited about.

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Claire

Smartphones may be more power-efficient than ever, but we all need a way to recharge the batteries in our devices. Until recently, the only charging method available was the wall wart: that chunky plastic plug that ships with all new smartphones and tablets. As tech is upgraded, binned, recycled or re-sold, many devices inevitably become divorced from their chargers; these bulky, useless plugs then sit in kitchen drawers, clutter up attics and inevitably end up in landfill.

However, there is one exception to the rule. Amazon’s latest Kindle e-reader doesn’t have a charger – it comes with a USB charging cable and no mains power plug. Despite some complaints from surprised Amazon customers, most people seem comfortable charging devices via USB – so comfortable that Amazon can confidently sell the wall charger as an optional accessory costing 25 per cent of the cost of the device itself.
Perhaps Amazon’s move inspired O2’s latest commitment to eco-friendly, responsible tech. The company has announced that it will do away with mains chargers completely by 2015. Its decision ties in nicely with a willingness in the industry to move towards a standardised charging socket, although the companies initially committed to that standard charger – including Apple, Nokia and Samsung - have never managed to settle on a shared adapter that suited them all, even after three years of discussion.
It was time for networks to go back to basics and re-examine the humble USB socket as a potential starting for standardized charging. In 2012, O2 experimented with selling one of its premium Android handsets, the HTC One X, without a mains plug. Customers could still buy one if they wished, but the phone itself was shipped with a micro USB cable as its only power connection. The mobile network expected 70 per cent of buyers to accept the change and do without a separate mains adapter; in fact, the figure was closer to 82 per cent.

This is a clever solution, because the standardized part of the cable is the USB plug on the end – not the plug that connects to the phone or tablet. As such, all manufacturers can work with it, and there’s no need for them to wait to come to a consensus on a standard charging port.

In 2015, O2 hopes to do away with chargers altogether. Instead, phones will be powered via USB, which serves as a universal charger connection. Companies will sell standalone mains plugs with USB sockets on the back. In the process, they will cut down on storage and transport costs, reduce waste and re-train us to be more resourceful in the way we power our devices. To make a real impact, other networks and manufacturers need to learn from O2 and HTC’s example and take more risks with the way their devices are packaged and sold.

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Claire

Another week – another slew of iPhone and iPad rumors. Nothing new there. But for the first time, the rumor mill is pointing to trouble for Apple: missed targets, slashed orders and tumbling share prices.

The first rumor is perhaps the most worrying for investors. Apple has apparently cut production on its full-sized iPad as the more compact iPad mini surges in popularity. Not only does this suggest that Steve Jobs was wrong about the small form-factor of the ‘mini’ tablet – a form he famously thought was too small to be of any use – it also suggests that technology journalists and knee-jerk commentators underestimated the public’s appetite for lower prices.

The iPad mini may be less capable than the larger iPad, and it may have an out-of-date screen resolution, but that doesn’t appear to have hindered its sales just one bit. And as a result, Sharp, the company responsible for manufacturing screens for the original iPad, has been reportedly asked to slash production for Retina displays down to the bare minimum. It seems that the new iPad mini has cannibalized its older cousin within months. The trend towards small tablets was obvious – indeed, that’s the reason why Apple went against Jobs’ wishes and developed the mini in the first place. However, most of us didn’t expect the shift towards smaller screens to be quite this obvious – or swift.

Apple doesn’t have the mini tablet market sewn up, of course, and its most fierce rival is reportedly developing its own version of the mini. The new Samsung Galaxy Note 8.0 will, if specifications are accurate, occupy the same chunk of the market as the iPad mini. The Note 8.0 apparently has a slightly larger-than-average 8 inches of screen real estate, making it basically the same size. It’ll be slightly heavier than Apple’s mini tablet, but will boast Samsung’s unique S-Pen technology.

There’s also a rumor that the iPhone 5 is selling less well than expected – although given the phenomenal demand for the handset last year, this is hard to believe. Apple has reportedly cut its iPhone screen orders in half, a move which has understandably spooked its investors and pushed Apple shares below $500 each. Rather than Apple cutting back, it’s more likely that the company is preparing to slow production after Christmas and look forward to a bigger, better iPhone with a completely different display, sourced from an entirely different manufacturer. (One suggestion is that the iPhone 6 will sport an IGZO screen.) There’s also talk of Apple unveiling a budget iPhone – complete with plastic case and recycled ideas from the iPhone 4 – that would be sold in China and India only.

Apple is due to post its Q4 results on January 23rd. Only then will its investors understand the company’s direction for 2013.

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-Claire

photo credit

The British high street could soon lose two more familiar stores as Blockbuster and HMV call in Deloitte. Despite last-ditch attempts to save both chains, it seems that the challenge of online was too much for either to survive.

Both Blockbuster and HMV are casualties of a new type of market: a connected consumer. Industry analysts say the signs were clear: both companies weren’t in a position to compete with the internet, and they were arguably struggling to compete, given the advantageous tax position that some of their online rivals enjoy.

HMV – along with another recent high-street victim, Comet – did have a reasonably good online store, but it no longer had their niche. Supermarkets and hypermarkets are increasingly able to stockpile electronics and entertainment goods in massive volumes, running loss-leading offers to tempt shoppers into the store. HMV bosses introduced a controversial dress code policy, forcing female staff to wear skirts and banning visible body art. This only served to make grass roots music fans more determined not to support the ailing chain over Christmas.

In Blockbuster’s case, it also failed to take advantage of the internet, preferring to keep its rentals as an in-store affair. The problems here are obvious. Online stores were often selling movies cheaper than Blockbuster would rent them. Movie streaming services such as Lovefilm give the consumer a library of movies to watch, with the option of renting by post as well. And let’s not forget Netflix, the all-you-can-eat streaming site that’s as famous for its TV series as it is for films. The increasing popularity of smartphones and tablets means consumers want more convenient, connected ways to buy content and entertainment. HMV also struggled to even stock the tablets its customers wanted to buy over the festive season.

According to Begbies Traynor, we can expect up to 140 more companies to go into administration this year. For now, it’s up to Deloitte to find buyers for HMV and Blockbuster. A few profitable Blockbuster stores may be saved; in HMV’s case, up to 45 stores could be absorbed into the Game chain. Game has already been through the administration process; its owners will be looking to acquire floor space in cities where Game does not have a prominent store.

Blockbuster will continue to accept gift vouchers, but the thousands of people who received HMV vouchers for Christmas are out of luck – for now. Perhaps more worryingly, more than half of the charitable proceeds from the recent Hillsborough tribute single are tied up in HMV’s accounts – and between the two enormous chains, almost 10,000 jobs could be at risk. In something of a marketing coup, Surrey store Banquet Records has offered 50 per cent discounts to anyone surrendering a worthless HMV gift card of any denomination.

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-Claire

The British high street could soon lose two more familiar stores as Blockbuster and HMV call in Deloitte. Despite last-ditch attempts to save both chains, it seems that the challenge of online was too much for either to survive.

Both Blockbuster and HMV are casualties of a new type of market: a connected consumer. Industry analysts say the signs were clear: both companies weren’t in a position to compete with the internet, and they were arguably struggling to compete, given the advantageous tax position that some of their online rivals enjoy.

HMV – along with another recent high-street victim, Comet – did have a reasonably good online store, but it no longer had their niche. Supermarkets and hypermarkets are increasingly able to stockpile electronics and entertainment goods in massive volumes, running loss-leading offers to tempt shoppers into the store. HMV bosses introduced a controversial dress code policy, forcing female staff to wear skirts and banning visible body art. This only served to make grass roots music fans more determined not to support the ailing chain over Christmas.

In Blockbuster’s case, it also failed to take advantage of the internet, preferring to keep its rentals as an in-store affair. The problems here are obvious. Online stores were often selling movies cheaper than Blockbuster would rent them. Movie streaming services such as Lovefilm give the consumer a library of movies to watch, with the option of renting by post as well. And let’s not forget Netflix, the all-you-can-eat streaming site that’s as famous for its TV series as it is for films. The increasing popularity of smartphones and tablets means consumers want more convenient, connected ways to buy content and entertainment. HMV also struggled to even stock the tablets its customers wanted to buy over the festive season.

According to Begbies Traynor, we can expect up to 140 more companies to go into administration this year. For now, it’s up to Deloitte to find buyers for HMV and Blockbuster. A few profitable Blockbuster stores may be saved; in HMV’s case, up to 45 stores could be absorbed into the Game chain. Game has already been through the administration process; its owners will be looking to acquire floor space in cities where Game does not have a prominent store.

Blockbuster will continue to accept gift vouchers, but the thousands of people who received HMV vouchers for Christmas are out of luck – for now. Perhaps more worryingly, more than half of the charitable proceeds from the recent Hillsborough tribute single are tied up in HMV’s accounts – and between the two enormous chains, almost 10,000 jobs could be at risk. In something of a marketing coup, Surrey store Banquet Records has offered 50 per cent discounts to anyone surrendering a worthless HMV gift card of any denomination.

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-Claire

Mark Price, managing director of supermarket Waitrose, warned last week that food inflation is due to gain pace rapidly. For most UK householders, it won’t be easy to manage the cost of the weekly shop if his predictions are true. However, the rising cost of food doesn’t appear to have stopped Waitrose shoppers from helping it to achieve bumper sales figures over Christmas, suggesting that some of us are still willing to pay more for the food we want.

According to Price, it’s possible we’ll see produce prices rise by as much as 5 per cent over the coming year due to supply problems. If that happens, the price wars that follow will pit supermarkets against each other more aggressively than ever on basic items – vegetables, bread and meat, for example. According to Nielsen, food prices rose by 4.6 per cent in November 2012; it seems that the effects are alreadykk being seen, and things can only get worse.

The Waitrose boss speculates that problems with produce supply have been caused by continued wet weather in 2012 – the second wettest year on record. Crops planted last year have been ruined, and farmers have planted far fewer crops than usual for 2013’s harvests. The supermarket boss is not known for hype; he played down the effect of food inflation in 2011, claiming that the BRC’s Shop Price Index painted an overly pessimistic picture. Now it appears he has completely changed his forecast.

It’s not just premium brands that will be affected. MySupermarket – a price comparison website for grocery stores – says that 4 in 10 ‘economy’ lines and no-frills products have become more expensive over the course of 2012. This is especially important for supermarkets, since these lower cost products are sold with a higher profit margin than more expensive, premium equivalents. The re-branded Tesco Everyday Value line was highlighted as an example; one ‘value’ cauliflower cost the consumer 20 per cent more over the course of just one year.

MySupermarket’s findings were broadly backed up by BrandView; it found that more than 43 per cent of Tesco’s Everyday Value line was more expensive in 2012 than 2011, and 41 per cent of Sainsbury’s Basics products had risen in price over the same period. In the face of food inflation, it seems there may be no escape.

The UK is by no means unique. Food prices are rising all over the world. But Waitrose is one chain that seems to be handling the crisis well. Sales were up 5.4 per cent like-for-like in the last week of December as shoppers splurged on party foods and alcohol. In contrast, Morissons is expected to report a drop in like-for-like sales of more than 2 per cent.

Do you need help with your new Marketing Campaign? Submit a brief now!

-Claire

Mark Price, managing director of supermarket Waitrose, warned last week that food inflation is due to gain pace rapidly. For most UK householders, it won’t be easy to manage the cost of the weekly shop if his predictions are true. However, the rising cost of food doesn’t appear to have stopped Waitrose shoppers from helping it to achieve bumper sales figures over Christmas, suggesting that some of us are still willing to pay more for the food we want.

According to Price, it’s possible we’ll see produce prices rise by as much as 5 per cent over the coming year due to supply problems. If that happens, the price wars that follow will pit supermarkets against each other more aggressively than ever on basic items – vegetables, bread and meat, for example. According to Nielsen, food prices rose by 4.6 per cent in November 2012; it seems that the effects are alreadykk being seen, and things can only get worse.

The Waitrose boss speculates that problems with produce supply have been caused by continued wet weather in 2012 – the second wettest year on record. Crops planted last year have been ruined, and farmers have planted far fewer crops than usual for 2013’s harvests. The supermarket boss is not known for hype; he played down the effect of food inflation in 2011, claiming that the BRC’s Shop Price Index painted an overly pessimistic picture. Now it appears he has completely changed his forecast.

It’s not just premium brands that will be affected. MySupermarket – a price comparison website for grocery stores – says that 4 in 10 ‘economy’ lines and no-frills products have become more expensive over the course of 2012. This is especially important for supermarkets, since these lower cost products are sold with a higher profit margin than more expensive, premium equivalents. The re-branded Tesco Everyday Value line was highlighted as an example; one ‘value’ cauliflower cost the consumer 20 per cent more over the course of just one year.

MySupermarket’s findings were broadly backed up by BrandView; it found that more than 43 per cent of Tesco’s Everyday Value line was more expensive in 2012 than 2011, and 41 per cent of Sainsbury’s Basics products had risen in price over the same period. In the face of food inflation, it seems there may be no escape.

The UK is by no means unique. Food prices are rising all over the world. But Waitrose is one chain that seems to be handling the crisis well. Sales were up 5.4 per cent like-for-like in the last week of December as shoppers splurged on party foods and alcohol. In contrast, Morissons is expected to report a drop in like-for-like sales of more than 2 per cent.

Do you need help with your new Marketing Campaign? Submit a brief now!

-Claire

The new year is traditionally boom time for the diet industry. As new years’ resolutions kick in, millions of men and women make a pact with themselves to lose weight, improve their fitness and get their lifestyle in check. However, when it comes to marketing messages, businesses are having to revise to the language they use to attract new dieters.

The recession has undoubtedly changed the landscape for diet brands, even on a very basic level. When money is tight, cheap, processed food is more attractive than expensive organic vegetables or pre-mixed meal replacements. Working longer hours means less time to cook, and less time (or money) to spend at slimming classes. Mintel figures confirm this: in real terms, revenue in the industry has fallen by 16 per cent over the last five years.

Weight Watchers has obviously noticed the seachange. It revealed its 2013 ‘New Approach’ campaign last month, fronted by various celebrity ambassadors, including Patsy Kensit. Its aim is to get away from the ‘eat less, exercise more’ mantra and change the way slimmers think about food. Zoe Hellman, head of public health at the company, says that Weight Watchers is focusing on tackling “toxic environments” and raising awareness of poor nutrition. It’s a softer message, and one that Weight Watchers presumably hopes will make people change their attitude towards food, rather than simply starving themselves. The company has also worked with Paula Scher to redesign its logo in the US, although Brits have yet to see the new branding.

The ‘eat less, do more’ model, commonly used by companies like Weight Watchers and Slimming World, has been reviled by some nutritionists for some time, although their views are still considered controversial. Perhaps that is about to change. Nutritionist and author of The Harcombe Diet, Zoe Harcombe advises against excessive exercise and processed diet food. Instead, she values ‘real’, quality foods and more up-to-date nutritional advice from the government. Harcombe also advocates management of food cravings and a responsibility for eating the right things – funnily enough, that’s the message Weight Watchers appears to shifting towards in 2013. Harcombe is the author of several diet books; one has been rewritten and re-released this month.

Kelloggs’ Special K cereal is marketed as a diet product – even a meal replacement food – yet a 2012 survey found that Special K is amongst 50 cereal brands which contain “excessive sugar”. As some newspapers speculated, the 17 per cent sugar in Special K means that it may be better placed in the confectionery aisle. Consumers may be catching on, and Special K has had to change its approach too. In its new 2013 campaign, ‘Dare To Wear Red’, the company places more emphasis on the two-week Special K diet as a quick-fix solution. In turn, it has quietly stepped away from promoting Special K as a long-term weight management product.

Is it possible that diet brands have been giving the wrong advice all this time? Or is this purely a change in the way the advice is presented? Given the evidence, it seems that consumers are looking for a new approach to losing weight. It’s up to the industry to keep pace with modern thinking on diets.

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-Claire