Brands are alive and kicking. Thank you.

Earlier this week I read an article that talked about the decline of brands with the growth of the internet. The essence of the article was that before the internet, people used brands as the surrogate of trust and knowledge. With all the information out there now, why would anyone need brands? Do your research and you can make your own choice.

At a rather simplistic level that makes sense. Simplistic being the key word.

I agree that with the internet everyone has access to all the information one needs to make an informed decision. But below are some examples of information out there.

The government of India is going to ban beef exports. This rumour was out there for a while with some of my very educated friends taking that to mean that the new ‘pro Hindu’ government was going to stamp out this business. Far from the truth. India is the world’s largest exporter of beef and has no such plans anywhere.

If you are being robbed at an ATM key in your PIN, in reverse. It sends an instant alert to the cops with your location so that they can be there in minutes. Not true.

The room key card for your hotel room carries your credit card information along with other personal information. Qn unscrupulous employee could use this information to rob you blind. Not true again.

In Microsoft Word pressing SHIFT F3 changes the casing of the words. True.

Saudi Arabia imports camels from Australia. Also true.

The problem today is that there’s just too much information out there. All looking very legitimate. So who, or what, do you trust?

Exactly.

The role for brands has never been stronger. It is the beacon of trust that guides the consumer adrift in the world of photoshop and innuendo.

But the role of brands is changing too.

Most brands, in the age of mass media, focus on building the emotional bond eschewing the rational. It’s usually about them and how consuming them will change the consumer’s life in some way.

In this age of ‘over information’ brands can also step in by pointing out the truth from the fiction thereby reinforcing trust in the brand.

The first bank that takes on the ATM lie, i referred to above, is going to earn a few trust cookies.

We will always have, and need brands. The internet helps them play a much bigger role than previously.

Those with a strong heart, will play it well.

 

Why innovation is not enough.

More data that confirms that users are unwilling to pay for content.

I think the Internet gave the huge opportunity for a bunch of people to leverage the reach and accessibility of the web to generate profits.

However practices that work off line don’t work on line.

There is a theory that when Microsoft gets into a market it actually encourages piracy. And when it believes sufficient penetration has been reached they kick in their second leg of the plan..which is the anti piracy campaign. Works well. Give stuff for free. Get consumer hooked. Get them to pay.

That model doesn’t seem to work on-line. Be it e-mail, or Facebook or the numerous blog sites that model just doesn’t seem to transfer. web users seem to be less loyal..if at all. They will move if they are asked to pay for something they are used to get for free.

It then falls upon advertisers to support the internet users. And given the huge plethora of options out there this is going to continue to be tough for many web publishers. Await the Great Consolidation.