Marketing in the Moments, to Reach Customers Online

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From my New York Times story:

Moments are having a moment in advertising. Or at least a micromoment.

As people flit from app to app online, they have little patience for any interruption, especially a banner ad or, heaven forbid, a 30-second commercial. Moments, whether they come during a 10-second Snapchat video or Twitter’s new collection of real-time news bites — called, fittingly enough, Moments — increasingly are all companies have to market against.

Companies that buy and sell online advertising are taking aim at these fleeting instances. They are hoping that targeting people based on what they are doing on their mobile devices at a particular time might make them more receptive to the message.

Last fall, for instance, the spirits company Campari America targeted liquor consumers aged 21 to 34 while they were in neighborhoods with lots of bars and restaurants. Using Kiip, a San Francisco firm that places ads in mobile apps, Campari offered consumers $5 off from the ride-sharing service Lyft when, say, they checked a score on an app while at a sports bar. More than 20 percent redeemed the offer, a high rate for digital ads.

“The attention span of consumers today is, what, eight seconds?” said Umberto Luchini, Campari America’s vice president for marketing. “You get one shot.”

And an ever more brief one at that. …

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Why Google Is Doubling Down On VR (Hint: It’s Not Oculus)

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From my Forbes blog:

More than a year and a half after Google introduced what still looks more like a mockup of a virtual-reality device than a real virtual-reality device, it’s finally getting real on VR. But not for the reason most people seem to think.

Today, Google confirmed that it has created a new virtual-reality group headed by Clay Bavor, a vice president for product management who has headed apps such as Gmail, Docs, and Drive–and Cardboard, the cheapo device that turns a smartphone into a crude but surprisingly effective VR headset.

The assumption by many observers is that Google is playing catch-up to Facebook’s Oculus, which just released its high-end Rift device, and other VR headsets such as the Oculus-powered Samsung Gear VR introduced last fall.

But the search giant is playing a rather different game than Facebook, in particular, and other makers of VR devices. …

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‘Unboxing’ Videos A Gift To Marketers

From my New York Times story:

One day last year, Jessica Nelson was surprised to find her toddler, Aiden, watching videos online in which people opened box after box of new toys, from Kinder Surprise chocolate eggs with trinkets inside to all manner of Disney merchandise.

“The next day we saw him watching more and more and more of them,” said Ms. Nelson, who lives in Toledo, Ohio. “He was pretty obsessed.”

She and her son, who turned 3 on Monday, had entered the world of “unboxing” videos, an extremely popular genre on YouTube where enthusiasts take products out of their packaging and examine them in obsessive detail. This year, according to YouTube, people have watched videos unveiling items like toys, sneakers and iPhones more than 1.1 billion times, for a total of 60 million hours.

The videos’ ability to captivate children has led toy makers, retailers and other companies to provide sponsorships and free toys to some of the most popular unboxing practitioners, who in turn can make a lucrative living. Hasbro and Clorox have ads that YouTube places on the videos.

Now, marketers are becoming even more involved. …

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Webrooming: How Mobile Ads Are Driving Shoppers To Stores

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Famous Footwear stores highlight highly searched products.

From my Forbes blog:

Showrooming, the practice of shopping in stores and then buying cheaper online, has long vexed physical retailers that fear they’re losing sales. No doubt they are, but a countervailing trend has been building for awhile now: webrooming, which is shopping online and then buying in the physical store.

That’s potentially a much larger opportunity because the vast majority of purchases still happen in physical stores. The holiday season that just began presents a particular opportunity for retailers that will grow as Christmas approaches and the time to order online before the big day grows short. But the benefits of getting people into stores, not just tapping online buy buttons, is more important regardless of the season, said eMarketer analyst Yoram Wurmser. “People are visiting fewer stores, so they buy more with each visit,” he said.

If getting people into stores to shop is an opportunity for retailers, it’s nothing less than a mandate for companies making coin from online ads. In particular, mobile ads, revenues from which are expected to surpass those of ads shown on desktop computers this year, are key as people increasingly use their phones to find products when and where they want–meaning here and now. “Smartphones have completely changed how we do holiday shopping,” Jason Spero, Google’s vice president of performance media, explained in an interview. “It’s now quick bites and micro-moments.”

No company stands to benefit more from proving its mobile ads work–or to suffer as much if it can’t–than Google, the world’s largest seller of ads. …

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Brands Look Far and Wide for a Niche in Virtual Reality

 

From my story in The New York Times:

Even in virtual reality, it seems, there will be no escape from advertising.

The Oculus Rift, which is owned by Facebook, won’t be available until early next year, but many of the two billion consumers worldwide who own smartphones can already try out virtual reality on the cheap with Cardboard, a device from Google that folds into a viewer with a slot for a smartphone. As more devices come to market with the aim of making virtual reality more commonplace, advertisers and agencies hope virtual reality will be the next great medium for persuading consumers to buy stuff.

For now, marketers are producing mostly eye candy in their own apps and on YouTube’s #360Video channel. But with virtual reality movies, shows and stories coming soon, the question is what kind of ads, if any, will work on the platform.

Companies including Coca-Cola, Volvo and HBO are struggling to figure that out. So are publishers like Facebook, which introduced 360-degree ads on Thursday, including video ads from AT&T, Nestlé and other brands.The first obstacle is that it is not yet clear what kind of programming besides games will catch on in virtual reality to provide a place for that advertising.

“There’s lots of spectacle, but I can’t name one great story in VR,” said Ben Miller, director of content development at WEVR, a virtual reality entertainment and technology firm in Venice, Calif. And without a clear consensus on what sort of content will succeed in virtual reality, it’s difficult to predict what form the advertising will ultimately take. Success in the new medium will depend on finding the equivalent of the 30-second TV spot or the digital search ad. …

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Turkeys + Dinner Plates = Thanksgiving: Google Tries to Make Machine Learning a Little More Human

From my story in MIT Technology Review:

Google CEO Sundar Pichai told investors last month that advances in machine-learning technology would soon have an impact every product or service the company works on. “We are rethinking everything we are doing,” he said.

Part of that push to make its services smarter involves rethinking the way it’s employing machine learning, which enables computers to learn on their own from data. In short, Google is working to teach those systems to be a little more human.

Google discussed some of those efforts at a briefing Tuesday at its headquarters in Mountain View, California. “We’re at the Commander Data stage,” staff research engineer Pete Warden said in a reference to the emotionless android in the television show Star Trek: The Next Generation. “But we’re trying to get a bit more Counselor Troi into the system”—the starship Enterprise’s empathetic counselor. …

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Billions Of Online Ads Are About To Die A Well-Deserved Death

From my Forbes blog:

Businesses that run annoying ads on your smartphone and laptop are about to get a rude awakening.

Not only are online ad blockers quickly gaining in popularity, now two very big companies will soon offer us new ways to avoid in-your-face video and animated ads, pop-ups, and other intrusive ads that plague our online existence.

Today, Sept. 1, Google will start blocking ads that use Adobe’s Flash software, employed widely by video advertisers, in its Chrome browser. And as early as next week, Apple is expected to release its new mobile operating software for iPhones and iPads that will allow the installation of apps that keep ads from appearing in its Safari Web browser.

These developments suggest a new era in which you’ll finally be able to zap annoying ads like those in the video above. For a variety of reasons, it’s unlikely that ad blocking alone will cause advertisers and publishers a big problem. But the fact that the two biggest forces in mobile phones are both cracking down on annoying ads means the online ad business is about to change in a big way. …

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Here Comes Wall-E For The Warehouse: A Conversation With Fetch Robotics CEO Melonee Wise

Fetch Robotics CEO Melonee Wise

Fetch Robotics CEO Melonee Wise

From my Forbes blog:

The little robot follows Melonee Wise around a makeshift warehouse as she picks up boxes of cereal and packages of soap and drops them into a crate atop the machine. Freight, as Wise’s startup Fetch Robotics calls it, may be a machine, but its careful tracking of her movements recalls nothing so much as a dutiful dog.

The robot, which Wise demonstrated in a mock warehouse in a corner of the company’s San Jose headquarters, is one of two wheeled models introduced by Fetch in April as a way to automate warehouses and manufacturing buildings. While Freight is intended as an aid to human workers, the namesake Fetch has a single arm that can pick items off a shelf and drop them onto Freight, potentially replacing people.

Wise’s company is one of several robotics companies betting that robots, which have slowly found homes in auto plants and retail warehouses, are finally ready to roll out in much larger numbers. The CEO says in an interview I conducted for a recent profile of the young roboticist and entrepreneur that smaller and faster computers, improvements in artificial intelligence, and cheaper sensors are all combining to make robots cheaper (in Fetch’s case, tens of thousands of dollars) and more capable.

Fetch is one of the most closely watched robotics startups thanks largely to Wise, a key contributor at the seminal robotics incubator Willow Garage, where she helped design and build several models, and a team of robotics veterans she has assembled. Fetch, which in June raised a $20 million round of funding from Softbank and previous investors Shasta Ventures and O’Reilly AlphaTech Ventures, has sold a few robots to pilot commercial customers. But Wise has bigger ambitions to create a platform on which software developers can create new applications. “They have a chance to create the backbone of autonomous robots,” says Shasta Ventures Managing Director Rob Coneybeer.

The blunt-speaking Wise, whose voice suggests a mellower version of the comedian Paula Poundstone, talked about how she got into robotics, what she hopes to accomplish at Fetch, how she aims to compete against Google and other companies snapping up robotics companies and talent, and the challenges of fulfilling her dream of a robot in every home. Following is an edited version of our conversation:

Q: How did you decide to focus on that particular area, given that you’ve been trying all along to build for pretty broad application, even in the home?

A: At Willow, we spent two years trying to figure out what the next thing in robotics would be. The first year we tried to understand if there was any play in the home. The answer was a resounding no.

Q: Why?

A: The expectations are too high and the price tolerance is way too low. So people would love to have a robot that would do their dishes or tidy their house, but they want all of that for $500 or less. Even when you challenge that notion by saying, well, you know the Roomba you bought last month was $850, they’re like, oh no, I bought that on sale.

There was this big hype about at-home telepresence. Everyone wants to put telepresence inside someone else’s home, like their mother’s, but no one actually wants it in their home. They don’t like the privacy challenges.

Q: What’s attractive about logistics and manufacturing?

A: We strongly felt that logistics and materials handling and manufacturing was very scalable. There’s a strong need for it. One of the things that sold me on it is there’s a 600,000-person job gap right now for logistics and manufacturing. They just don’t have enough people right now. Turnover is really bad. They also want to increase performance, and people have a rate limit. They get injured. There’s shrinkage. When you pile all these things up, there’s a great case for robots. …

Read the complete interview.

Innovator Melonee Wise Builds Robots For The Warehouse And Beyond

Fetch Robotics CEO Melonee Wise

Fetch Robotics CEO Melonee Wise with namesake robot

From my MIT Technology Review story:

Melonee Wise imagines that all homes will have autonomous robots—something like The Jetsons’ Rosie the robot maid, minus the apron and Brooklyn accent. Just one problem: Wise, chief executive of the year-old startup Fetch Robotics, thinks it won’t happen in her lifetime, because the challenges in hardware and software are too big. “I’m probably one of the most pessimistic roboticists you’ll ever meet,” she admits.

Nonetheless, Wise still thinks smaller and more powerful computers, affordable sensors, more adept machine vision, and better artificial intelligence are coming together to make robots capable of a wide range of tasks—if not yet all in a single machine. That’s why Fetch Robotics is going after one promising area: warehouses and e-commerce fulfillment centers, which are plagued with high turnover, injuries, employee theft, and a chronic shortage of workers, who, of course, also have a biological need to sleep.

Although dedicated robots are common in giant distribution centers, Wise thinks there’s a bigger market for more flexible “mobile manipulation” robots that can help smaller companies ease into automation. …

Read the complete profile.