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2011 in Digital; A Year in Review

by Chris Smith on January 3rd, 2012

This is already very long, so I'm skipping the tedious introduction so you can dive straight into the interesting stuff. Do let me know your thoughts & opinions via the comments, or through Twitter.
Social Networks
Facebook remains the monolith of the social network scene, although the usual security and privacy outcries and scattered reports about user numbers declining in the US led to mass (and completely incorrect) hysteria that ‘it was dying’. Huge changes, from Tickers, to Timelines to OpenGraph all caused huge waves, and the consequences of each remain unclear. Despite such turbulence, by December, a huge $100billion IPO was rumoured to be in the cards as the network remains not only the biggest now, but arguably the best positioned social network in terms of revenue growth and managing future developments too.

Twitter continued to grow in user numbers and public interest, with the super-injcution Ryan Giggs furore revealing the chasm between the old and new media worlds (and causing a massive spike in Twitter signups). Elsewhere, Quora disappeared from the consciousness of the internet
almost as quickly as it arrived, marking it as the winner of the over-hyped service of the year (with Color finishing in a commendable second place). Myspace was sold to some people and Justin Timberlake, who will roll the dice in 2012 for what must be the website’s last chance saloon. Path began to get some serious praise towards the end of the year, as it became clear that one of the years buzzword concepts ‘frictionless sharing’ was a perfect fit for such a deliberately restrictive social network.

However, for better or for worse, 2011 was the year of Google+, which magically appeared one day, with the most valuable piece of real estate on the internet as its launch pad. There isn’t much to say that hasn’t been said about the service, other than that its appearance certainly shook the entire social network landscape up, forced Facebook’s hand in making changes and improvements and that it remains completely unknown whether it will still be around in 2013.
Television
Television and social media keep getting closer and closer together, but just like some sort of drawn out romantic comedy, everything still remains a bit awkward. Twitter TV, where people tweet-a-long whilst watching isn’t even a new phenomenon – people have been texting-a-long with their friends for the best part of a decade. It is however much more powerful now anyone can see what is being said, and big-hitting shows tend to dominate the top trend list week after week.

However, I haven’t yet seen Twitter make or break a TV show. Both PanAm and Life’s too Short looked like possible candidates towards the latter end of the year, but the first was panned by literally everyone for being awful, whilst the second split everyone down the middle. However, Ricky Gervais’s surprise return to Twitter shortly before the latter debuted is probably not a coincidence...

However, TV remains one of the most intriguing and exciting digital arenas for one key reason –its still so far away from where it will end up. Streaming TV on demand is now mainstream, thanks to things like iPlayer, but the entire industry remains stuck in the old delivery model. If you look at the leading new TV content providers, they are the biggest technology companies in the world (Apple (AppleTV/iTunes) Amazon (LoveFilm/Unbox), Google (GoogleTV/YouTube) plus Netflix, Hulu et all) and these giants are all heading on a collision course with the world of TV in a big way.

For example, Google, could serve up its own adverts next to shows that you watch on demand, much like on YouTube. iTunes could replace your DVD collection with an online library, accessible from anywhere in the world. Set-top boxes could be replaced with home entertainment & gaming devices made by Microsoft or Playstation. By the end of 2012 however, the most likely outcome is that things advance, but remain broadly similar; this is an ongoing journey that will most likely take a number of years to thrash out.
Music
2011 will be remembered for Rebecca Black, who broke every record ever when it comes to going viral. But that shouldn’t be a surprise – over half of the most popular YouTube videos of all time are music videos after all. Spotify finally landed in the US and, alongside Pandora, continues to grow. Unfortunately, both are still losing money, highlighting how monetisation remains the fundamental problem for music in the digital space.

However, the number of bands and artists doing innovative things online remains mystifyingly low. Radiohead’s newest album tried with an offline/online idea but to be honest was hugely underwhelming. The best example was Manchester Orchestra, who allowed users to preview their album if they could solve a puzzle by roaming round popular music sites. The band have also done further digital bits off their own backs, including the ability on their website to record yourself singing a chorus, which will be compiled with other entries and released by the band.

However, innovation was provided by Turntable.FM, a brilliant concept that brings a truly social element to listening for music. Spotify apps and Facebook ‘frictionless sharing’ was another step in this general direction. Bringing digital social forces and music together tightly will inevitably be a major trend for the industry in 2012.
Location
2011 started with everyone looking at Facebook Places. 2011 ended with Facebook buying Gowalla, after pulling the plug on Places and deciding to start again. Meanwhile, Foursquare continued to grow and remains the leading pure location-service du jour. The real question is, can location based mobile or online technology actually do something more substantial than get you 20p off at Starbucks or find someone nearby who wants to have sex with you?

Facebook should certainly not be written off however. Killing ‘check-ins’ was 100% the correct move, as was their quiet but clever integration of location with status updates in the summer. Either way, the location-centric model (i.e. having users say Look! I’m here!) is on the way-out (as proved by pioneers Foursquare beginning to run away from it themselves) and value add, and depth of experience is where everything will be heading in 2012.
Mobile
Anyone pretending to know what they are talking about will often mumble the phrase ‘Mobile is the future’. They do this for a reason (because it is), and as a result, 2011 was a very busy year for the industry.

Firstly, Nokia teaming up with Microsoft and Windows Phone 7 was a surprise and caused a massive shake-up for the industry, leading to the effective deaths of both Symbian & Meego. In November, the Nokia Lumia 800 launched to much fan-fare, although sales figures have been kept secret. 2012 will be make or break for Nokia in the smartphone market, but they have, for the first time in half a decade, got a bit of momentum.

The iPhone 4S disappointed everyone by not being an iPhone 5, but still sold in record numbers
(4 million units in 4 days), reinforcing Apple’s position as the dominant market player. However, Android is now picking up 700,000 activations a day across its range of phones, making it no longer a challenger, but the biggest mobile operating system in the world. With Google's purchase of Motorla, expect big plans and announcements this year.

Windows Mobile efforts itself remain weak and unable to become a viable no.3 option – although the position might not be one they particularly covet, as it was last held by HP’s webOS around the time of the PalmPre launch in 2009 (HP pulled the plug on webOs in August). However, Windows 8 for tablets is without doubt a viable challenger to iOs and Android, the latter of which has struggled significantly, meaning Windows could be no.2 in the tablet arena by the end of this year. The eco-system knock on effect this would create could yet prove the kick that their mobile platform effort requires.

All in all, the mobile industry remains tribal for consumers and cannibalistic for businesses; numerous lawsuits between all the major players remain ongoing and Nokia & RIM in particular need good 2012’s to stay in the marketplace. Elsewhere, near-field communication technology (the most exciting example of which his Google Wallet) could make a huge splash. Predicting exactly how things will end up this side of CES and Mobile World Congress however is spurious folly at best, but whatever happens, it will be an eventful 2012.
Tablets
The iPad was generally regarded as ‘meh, it’s a big iPhone’ when it was launched in 2010. Less than two years later, it’s sold an unbelievable number of units, and tablets are the next big thing. There are still unanswered questions though, and brands remain thoroughly perplexed in how to best exploit a unique piece of hardware in a way that isn’t identical to a normal online or mobile campaign.

However, tablets are here to stay, and are a huge boom market. Unfortunately, all of Apple’s competitors can’t seem to get it right. In August, HP began selling their 'iPad killer' TouchPad at a huge loss to shift unsold stock, before pulling out of hardware altogether in one of the biggest strategic business retreats since IBM. In December, both the Dell Streak and the BlackBerry Playbook were quietly announced as failures by their individual companies. However, even more suddenly, Amazon then popped up and announced the Kindle Fire.

2012 will see the Kindle Fire become a success. The reason is that it doesn’t compete with the iPad head-on, but operates as a cheaper, smaller, different sort of tablet. It’s trying to create its own market of consumers rather than muscle in against Apple. And Amazon are masters of creating a new market so why bet against them?
#Fails
Everyone loves a good social media #fail and 2011 provided us with plenty. One of the most noticed was ‘Kenneth Cole #Cairo’, but in fact, apart from having someone in charge with a lack of experience and understanding of the platform, it wasn’t really that bad.

Much worse was Weinergate, in the ‘what an appropriate surname’ story of the year, Ragu failing to understand how ‘engagement’ and ‘debate’ is not the same as ‘spamming insults to people’
and Qantas, who somehow failed to foresee that running a huge Twitter promotion the day after crippling strike action was totally stupid.

The winner of the 2011 #fail award however is undoubtedly Go Daddy, whose CEO posted videos of himself killing an elephant and a leopard to YouTube, causing a massive PETA and environmental activist campaign against the company, causing huge number of customers to leave. Not content with this, in December, Go Daddy helped write & then actively support controversial US Congress bill SOPA (which opponents claim would lead to ‘censorship’ of the internet). This resulted in another huge campaign which caused 21,000 customers to jettison the service in just 24 hours. With an attitude that looks like they actually want to lose customers, Go Daddy are clear #fail champions of the year.
That's it. I could go on; E-commerce, Video, AR, Blogs, Protests & more were all on my initial list but the holidays are short and there were mince pies to eat as well as write. But I'm sure I'll write about them here soon, Check back soon for a Top 10 Digital Brand Campaigns of 2011 post.


Posted in Digital, Best of, Music, Google+, Facebook, Twitter    Tagged with digital 2011 marketing online music mobile location tablet #fail


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