Cartoons and animations have been a fixture of my childhood and, I’m unashamed to admit, even in my adulthood today. From the smart use of colours to exaggerated expressive styles, animation has always been able to grab my attention and evoke emotions in me that seem 100 times more dramatic than even live-action movies with a wealth of visual effects.

The vibrancy of animation is the key trait that has continued to entertain me all these years. For example, the blue-tinged lines shading a character’s forehead immediately communicate anguish to me, while over-the-top facial contortions effectively convey the discomfort that a character is experiencing.

Realising the potential of animation in communications

While my love for animation has never diminished, I began to see it as more than just a form of entertainment when I started working in the communications field. Part of my job as a content writer and researcher is to observe the different mediums that can effectively communicate a brand’s marketing and public relations initiatives. I found myself naturally drawn to animation-based campaigns, which opened my eyes to the potential of animation as an ideal medium for communications.

I read several studies that delved into how humans behave when watching animated content and became increasingly fascinated by the physical and psychological reactions that animation can evoke. For example, studies have found that based on the animation’s gestures, colours, and intensity, viewers can experience heightened cognitive functions, such as their comprehension, spatial ability and more. This enhanced cognitive simulation can even improve attentiveness and memory, allowing viewers to retain information displayed in an animation for longer periods of time.

Of course, one can argue that live-action campaigns can also produce these effects, given that many live-action adverts or movies can also be engaging. However, the virtual nature of animation means it is not subject to the limitations of live-action and can seamlessly integrate with advanced digital technologies such as virtual and hybrid reality. This opens up a wealth of creative possibilities for brands in their communication strategies, especially with an increasingly digital future ahead.

Creating heightened levels of audience immersion

“Animation can explain whatever the mind of Man can conceive,” – Walt Disney

Brands must establish a strong connection with their target audiences to effectively communicate their messages. However, this is easier said than done, and this is where the customisability of animation can help.

Brands can select various animation styles and sceneries to create eye-catching visuals to first hook the audience, draw them in with exciting narratives, then emphasise action and decision-making with immersive call-to-actions via characters that use the emphatic gestures and tones common in animation.

Moreover, studies have shown that animation can help forge deeper emotional connections with audiences through three core components:

1. Art design can help lay out the context of the animation from background scenery to the character’s facial expression.
2. An engaging storyline establishes the narrative for audiences to follow.
3. Lastly, background sound or music sets the mood and tone for the entire animation.

Driving viewer participation

As mentioned, animation does not face the same physical limitations as live action, meaning that there are nearly endless possibilities for creators to come up with narratives, scenes and concepts to draw the audience in. When used in interactive apps and programs, it also enables extensive possibilities for customisation and control by the users themselves, greatly increasing engagement.

For instance, game developers have long recognised the value of animation in engaging players – be it through stunning graphics, compelling storylines and intricate missions. They have been so successful at creating engagement that even corporates have begun to leverage games in their advertising strategies, and playable animated ads have emerged as one of the most popular forms. These animated games-slash-ads get viewers interacting with the ad, stimulating their attention and creating a lasting impact on consumer perception – potentially even leading to more leads.

Additionally, there is a natural synergy between animation and augmented reality (AR), which have become a trend among brands – especially tech brands – in driving user engagement. Snapchat’s Cartoon animated lens effectively Disney- or Pixar-fies user appearances, becoming so popular that the concept was even co-opted by TikTok users. These filters could allow users to look like they have magical superpowers, look like they’re somewhere else, and much more – further sparking their imagination and creating organic engagement. 

Facilitating more diversity in communication styles

Besides AR, animation can be used in various other forms depending on what would be most effective to convey a brand’s messaging. Motion graphics, for example, is an animation style that presents information using narration voiceovers, animated texts, and even graphical illustrations. This may be a simple and engaging way to deliver information while emphasising branding; Headspace, a meditation and mindfulness app, released a 90-second motion graphics animation that taught users how to use the app, which was created in the brand’s design language and colours.

Additionally, brands can also apply tutorial-style messaging for concepts that are difficult to describe using mechanical animation. For instance, the world-renowned razor brand, Gillette, famously uses mechanical animation to communicate the inner workings of its latest razor products. Their detailed animation breaks down the technical aspects of the razor’s design and how these prioritise personal safety – inspiring viewer confidence and doubling down on Gillette’s key messaging of providing audiences with safe-to-use grooming tools.  

Harnessing that main character energy

Some of the most memorable movies and series of all time have been animated – such as The Lion King, Family Guy, and SpongeBob SquarePants. Part of this success is due to the animated characters and their personalities. They have a unique ability to captivate audiences of all ages worldwide with their exaggerated expressions, outlandish antics and gravity-defying physics, which are difficult – if not impossible – to portray in live action. As such, the use of animated characters in ad campaigns can be a great pull for brand engagement – more so than even live actors.

For example, Tony the Tiger is an animated tiger that has become synonymous with Kellogg’s Frosties cereal. From his smiley demeanour to his signature “G-r-r-r-eat!” catchphrase, the animated mascot cemented the cereal’s global appeal as a family-friendly product for all ages through ads and campaigns. The character also elevated brand recognition as its unique features ensured that people recognise Kellogg’s Frosties from any supermarket shelf. Building on Tony’s loyal following, Kellogg’s even unveiled him as a Twitch streamer in 2022 to optimise fan engagement!

Plan to win with animated campaigns

As with all tech-driven initiatives, high-quality animation requires high-quality expertise to deploy successfully. Even the best animated work requires effective planning to become an effective communications campaign; for instance, brands must know their target audiences’ viewing preferences as these tastes can influence their acceptance and decision-making when exposed to an advertisement. Animation may not be optimal for all audiences or products.  

Brands must also optimise their budgets and resources to ensure any animated project can be completed to a high standard. The financial resources required to create an animation campaign can be significant because the funds must cover video editing, special effects and, depending on the animation style, voiceover fees or motion capture expenses. As a result, brands must be willing and disciplined enough to explore different animated styles that match their time and resource bandwidth.

Above all else, my lifelong love for animation has given me a deep appreciation for the creativity it unlocks, and that is what I am most hoping to see flourish from animation in communication campaigns. As more and more brands worldwide begin to tap into the potential of animation, I look forward to seeing them also push their creativity further to bring us a more exciting, inspiring and memorable world of communications.

The post Bringing communications to life with animation appeared first on Redhill | Global Communications Agency.

A version of this story first appeared in Campaign Asia. Click here to read it.

Ever since Facebook rebranded itself as Meta and declared itself a champion of the metaverse, everyone wants to be part of the metaverse conversation.

Matthew Ball, author of The Metaverse, says the metaverse is the ‘fourth wave’ of computing: “It’s about being always online rather than always having access to an online world.” This vision of an always-on world has exciting implications for how we might live, work, and play in the future.

Many brands are eager to get in the metaverse game for a head start on the next digital frontier. At present, however, the metaverse is still a concept in its infancy. There remain many grey areas that brands must first do their due diligence on to decide whether they should make a metaverse play now, or whether waiting is the smarter choice.

The race to the metaverse

Broadly, we understand the metaverse as a convergence of our digital and physical lives. It is a world where both of our existences will carry real importance.

By 2026, Gartner says, a quarter of us will be working, studying, shopping and socialising in the metaverse for at least an hour a day. It will have a ‘virtual economy’, which will include digital currencies and non-fungible tokens (NFTs), to buy, own and sell digital or physical items online. The metaverse technology market alone is already projected to hit US$224 billion by 2030 — to say nothing of the revenue opportunities it will create for companies across sectors.

Unsurprisingly, we are seeing brands experimenting with new metaverse experiences to establish first-mover advantage in what could be a very lucrative new space.

Last year, Hyundai launched its Hyundai Mobility Adventure metaverse space in Roblox, an online entertainment platform and metaverse frontrunner, to showcase its products and future mobility solutions. Recently, Meta launched an online store for Facebook, Instagram and Messenger users to buy digital clothing for their virtual avatars — and luxury labels like Prada and Balenciaga already have designs for sale on it.

Other brands are choosing to dip their toes in first by buying digital land — despite prices skyrocketing by as much as 500 percent. In January, consultancy giant PwC bought virtual LAND in The Sandbox, a blockchain-based 3D open world game. Sportswear leader Adidas and gaming brand Atari number among PwC’s neighbours; the former aims to build exclusive content and experiences, while the other plans to build a virtual theme park with a unique digital economy.

Staying authentic in the eye of the storm

With everyone seemingly hopping on the metaverse train, it is natural for brands to worry about the potential opportunity cost of not following the crowd. It does not help when they are being bombarded by a myriad of articles and podcasts touting metaverse strategies and best practices for brands. But as far as I’m concerned, it always comes back to authenticity.

Brands are used to deciding what platform to advertise and engage on based on where their audience is, as well as which is more authentic to the brand’s image.

An apparel brand for young adults may create trendy TikTok and Instagram video content to appeal to the younger demographic, while brands focusing on mass market appeal may have more outdoor advertising and TV ads to get as many eyeballs as possible. Deciding whether to participate in the metaverse requires similar considerations.

Brands need to think about:

• Who and where is your audience?
• What are the messages you’re trying to propagate?
• Does a metaverse presence support your brand message?
• Is the metaverse the right medium to spread your message? Are there better alternatives?

Clubhouse’s meteoric rise and fall is an excellent example of why brands should not jump on trends for the sake of it. I am not saying this will happen for the metaverse, but the lesson remains relevant. At this point, we still do not know what the metaverse will even look like — what we are being sold now in the fancy teaser videos are still concepts and fantasies.

Brands that do decide to take the plunge must approach the metaverse as its own platform. They cannot hope to simply transplant a social media campaign into the metaverse — they must experiment, prepare for a lot of trial and error, and build things organically and in real-time. The key is always to focus on the storytelling — that has never changed, regardless of medium.

Who protects the metaverse?

Another aspect that brands must not forget when it comes to the metaverse is the question of ethics. For the metaverse to achieve popularity and longevity, it must be safe enough for people to interact, purchase, engage and invest in it comfortably. Unfortunately, we are not at that stage yet.

For a long time, the business model of Web 2.0 (our current iteration of the Internet) companies revolved around speed and profit: in fact, Facebook’s mantra was ‘move fast and break things’ until 2014. As a result, ethical standards and enforcement could not keep pace. Facebook is infamous for its inadequacy in dealing with ethical issues around data usage and collection, as well as its opaque content moderation standards. It may have a new name now, but its problems remain.

Brands in the metaverse cannot afford to ignore the ethics question. Already there are numerous accounts of virtual harassment in the metaverse, ranging from virtual groping to more violent behaviour. Meta’s latest answer was to institute a four-foot ‘Personal Boundary’ between avatars in its Horizon Worlds VR experience, but this seems reactive and insufficient.

“Designing mechanisms for ‘doing better’ is not beyond an ecosystem that is responsible for designing a virtual world in the first place.” — Mark Read, CEO of WPP

The real-time nature of the metaverse also works against it here. It will be extremely challenging for brands to monitor and regulate at speed — especially given the lack of satisfactory moderation standards in today’s Web 2.0. Managing information privacy and user safety is another question; how will brands protect both users and their sensitive data, and what is the scope of their liability?

No one has the answers yet, but finding them must be top priority for brands seriously considering making a metaverse play.

Take the good with the bad

The technology and the possibilities of the metaverse excite me. If the metaverse does succeed in cementing itself as a cornerstone — if not the nexus — of Web 3.0, then the question will not be whether brands should participate in it — it will be when.

If done well, the metaverse will provide brands with a huge opportunity to create new and immersive experiences for consumers, as well as pioneer new forms of engagement. However, we cannot also ignore its dark side.

The metaverse is presented as a new, decentralised Internet experience, but it is still driven by large businesses that focus on growth and profit — many of them the same ones that have shaped our Internet experience today, with all its features and flaws. Content moderation and digital addiction will both be huge issues that the ecosystem must tackle as a whole for effective and positive change.

With everyone hopping on the metaverse train, it is natural for brands to worry about the potential opportunity cost of not following the crowd. But as far as I’m concerned, it always comes back to authenticity.

What we have now is the relative advantage of time. With the metaverse still in its infancy, brands have some space to plan proactively instead of trying to play catch-up.

Decision-makers must tackle these difficult but necessary questions now about the suitability of the metaverse for their brand, as well as the ethics and regulations that it must uphold for them to participate productively. Joining the metaverse should be an informed, planned choice, not blind bandwagoning or as a last resort.

Ultimately, my advice to brands is: always look before you leap. Do not get dazzled by the metaverse hype. Stay focused on the story you are trying to tell and who the audience is that you are trying to reach. Those are the most important — no matter what universe you are in.

The post Should brands participate in the metaverse? appeared first on Redhill | Global Communications Agency.

I never realised just how much games have impacted my life till I looked back at my childhood. Experiencing first-time betrayal through a +4 UNO card (truly infuriating), discovering bankruptcy by losing all my houses in Monopoly, and running face-first into hard pillars in real life while catching virtual Pokémon in Pokémon Go — I’ve got to give credit to gaming for teaching me some pretty important life lessons.

That’s just my experience with gaming, but I’m sure it’s not unique. Even if we don’t realise it, games have always been a part of our lives in some way. Most of us see gaming as a mere hobby or pastime — something that’s done as a cure for boredom or to de-stress.

But in recent years, gaming has also evolved to a point where people can consider it a legitimate job or business, especially with gaming-focused monetisation platforms such as Twitch taking the world by storm.

Put it all together and I wonder: what is the overall impact that gaming has had on our society? In my adulthood, I’m not such an avid gamer anymore, but I still acknowledge how games have changed my life. When that impact is multiplied by the experiences of millions of people, it’s hard not to notice the correlation between the evolution of gaming and societal development.

Gaming: more than just a boredom killer

If we think about games in our world today, perhaps a few popular online ones might come to mind — Among Us, Wordle, or even Call of Duty. However, the definition of what constitutes a ‘game’ goes far beyond current online iterations. Chess is a game, albeit focused on strategy and intellect. Even the Olympics are also technically games, but with a focus on elite athleticism.

While modern games have been getting a bad rap from the public because of concerns about their addictive nature or adult themes, we shouldn’t ignore the positives that games overall, both modern and traditional, can and have brought into our lives. There are many instances and examples through the years of games helping us develop our mental and physical capabilities.

Chess is one of the most obvious examples, having developed a reputation as an intellectual pursuit by testing the wit and strategy of the world’s greatest minds. But there are also games like Pokémon Go, which succeeded in getting players to be social and active by making them walk around their neighbourhood to catch Pokémon. Even ground-breaking concepts such as the metaverse took pointers from the graphics and concepts present in digital games decades ago.

Games are changing our lives — whether we know it or not.

Play hard, get smart

For millennia, humankind has sought to make learning fun — and how better to do that than to gamify learning?

Known as the ‘oldest tool of education’, games have long challenged learners to develop their analytical and problem-solving skills. One example is the deceptively simple mancala, which dates back to Ancient Egypt and has been adapted and played by many cultures around the world.

Coined as ‘pallankuzhi’ in South India or ‘congkak’ in areas of Southeast Asia, this game has been instrumental in teaching young children how to count as they calculate the stones or marbles that they collect against their opponent in the game.

Today, games are still being used as an educational tool, albeit via different mediums such as the digital space. Games such as March Mammal Madness or Jumpstart have respectively taught cognitive skills and the fundamentals of math, language, science, and even art to young players. More recently, Roblox is gaining popularity for giving kids their first taste of coding, 3D modelling, and animation.

The definition of what constitutes a ‘game’ goes far beyond current online iterations, and it’s important for us to recognise the many positives that games, both old and new, have given us.

There is a growing case to use video games more actively in education, and it might be exactly what is needed to build a learning foundation for future citizens of a digital society. Digital or no, however, the fact remains that gaming and learning have always gone hand-in-hand to some extent.

Engagement through gaming changes business

Perhaps one of the biggest draws of games is that they have the ability to keep us engaged. From adrenaline-pumping missions to challenging logic puzzles, games keep us locked in. I never gave this feature conscious thought until I entered the working world and noticed that businesses were actively gamifying their ads to gain and retain audience engagement.

As a consumer, this makes perfect sense. Instead of mindlessly staring at a static ad, I now have the less boring option of playing a quick game, which requires me to pay attention and makes me more engaged. Businesses can capitalise on this opportunity by embedding call-to-action buttons at the end of their gamified ads to lead me to their apps’ download or purchase pages. It’s a win-win for both the brand and consumer, really.

Beyond ads, e-commerce platforms are also using minigames to keep people logging in. Shopee, for example, has a ‘Shopee Farm’ where if you diligently plant seeds and water plants every day, you can earn Shopee Coins to be used for online purchases. The idea here is that the more time people spend on the app, the more likely they are to buy something — especially when given a small incentive like small amounts of Shopee Coins.

Perhaps one of the biggest draws of games is that they have the ability to keep us engaged.

Gaming offers variety in consumer engagement avenues for businesses beyond traditional in-your-face hard-selling, especially with the introduction of technologies such as artificial intelligence (AI) and augmented reality (AR).

For instance, fashion brands such as Kohl and American eagle gamified their store experience through AR features via Snapchat for consumers to participate in ‘virtual try-ons’ of their desired outfits. The new wave of digital fashion is a clear illustration of how industries are evolving by gamifying their retail strategies.

This has significant implications for not just consumer purchasing behaviour, but also how customers interact with brands and what they expect brands to deliver — thus driving change in a fundamental part of society.

A game-inspired future

When we think about art imitating life, it’s certain that games have done that in their early stages. However, as technology advances and we progress towards a convergence of the physical and digital, the reverse is gradually proving true.

With the evolution of technology, games became increasingly more sophisticated and realistic. Developers experimented with new concepts and systems in the virtual world but often grounded them in real-world logic for realism. They also introduced new business models such as free-to-play and doubled down on existing models like microtransactions.

Slowly but surely, signs are emerging that these hallmarks of modern games are becoming the building blocks of our digital future. The Sims, for instance, came out over two decades ago and gave me my first glimpse of ‘living online’ before social media was ever a thing. Now, as I look at the ever-growing metaverse, I can’t help but draw parallels between its virtual models and The Sims because they look so alike.

When we think about art imitating life, it’s certain that games have done that in their early stages. However, as technology advances, the reverse is gradually proving true.

Even in terms of financial systems, there is much that we can take from games. The metaverse is using microtransactions, which have long been a familiar concept in the gaming world. There are some differences, of course — namely the metaverse’s blockchain operating base and the fact that there is no single authority controlling the real-life value of virtual assets and currencies (yet). But it’s hard to deny the influence of games in us reaching this point.

Living the gamer’s dream

In the pursuit of fun and competition, games have always been an integral part of human history. They challenge our minds in problem-solving and our bodies in physical exertion. Most importantly, they push us to innovate and adapt, helping us grow as we learn to overcome new obstacles and trials.

It’s quite remarkable to experience my childhood games becoming, in many ways, the basis of incredibly complex technological developments today. Whether it is in transforming business practices or entire ways of life, it is evident that games will continue to incentivise a myriad of innovations in the digital space and beyond.

I’ve been privileged to see this transformation unfold first-hand, and I’m very excited to see how else gaming can help drive the advancement of our society!

The post How gaming has helped society level up appeared first on Redhill | Global Communications Agency.

On August 11th, 2020, a new decentralised finance (defi) protocol called Yam Finance had over $500 million locked within its first 24 hours of existence. The price of its governance token (YAM), issued to users of the protocol, quickly jumped to $167.

On August 12th, 2020, an irreconcilable bug was discovered in one of Yam Finance’s smart contracts. Shortly thereafter, the YAM token price crashed to $0.97. The protocol is now defunct, prompting an apology by the CEO and equal measures of derision and support from the defi community.

Yam Finance, and many others like it, are a symptom of something called “yield farming” — a friendly term to describe the relentless pursuit of free money. At its simplest, yield farming is taking the crypto that you own and using it to make more crypto. In Yam’s case, you could lock your crypto into the protocol, earn YAM tokens, and then eventually convert those YAM tokens into fiat currency. Sounds too easy, right?

Some have likened the current yield farming craze to the ICO chaos of 2017. Projects springing up out of nowhere, issuing tokens in exchange for millions of investor dollars, and then just as quickly vanishing into the ether. 80% of ICOs in 2017 were reported to be scams. And while the jury is still out on the usability and integrity of defi projects, this phenomenon does raise the question of who defi is really helping?

Is it the world’s unbanked, as many of the original defi projects claim? Or is it those with the right combination of technical and financial privilege?

What is decentralised finance?

At its core, defi is finance without the fee-sucking middlepeople that make traditional finance accessible only to the comparatively wealthy. It means access to liquidity for anyone, even at small volumes, and, theoretically, very little opportunity for the many discriminatory practices that plague the existing system.

A good example is a lending protocol. Normally, if you wanted a loan, you have to go down to the bank and present collateral. If you don’t have collateral, then you would visit a payday lender who would charge you extortionate interest rates. No matter which path you choose, discrimination looms large. Wealth, skin colour, tattoos, piercings, accent, you name it. Lenders seem to have no issue with making discriminatory decisions in the name of profit.

With a lending protocol, there is no bank. There’s just a group of people like you who contribute money to a liquidity pool. What the protocol does is use an algorithm to determine borrowing and lending rates based on how much of the pool has been utilised. As the pool utilisation approaches 100%, the lending rate increases to incentivise lending. The reverse happens when utilisation approaches 0%: the borrowing rate decreases to incentivise borrowing.

As a borrower, you are represented by nothing more than your wallet address — a random string of characters. The algorithm doesn’t care who you are or what you look like. If you have collateral, you can get access to funds at fair rates, whether you’re borrowing $10 or $10,000.

Who is defi supposed to help?

Many of the initial defi projects were ushered in under the banner of “banking the unbanked.” Founders salivated at the number of unbanked people globally and likely thought, “This is the world’s largest untapped market. If only we could get 1% of that ….”

What they eventually realised was that banking the unbanked needs a lot more than just a cool app or new technology. It requires education, trust building, immediate use cases, and government support — expensive and time-consuming activities that startups lack the resources and will to do.

Going back to the lending protocol example, the idea was that a rural farmer in, say, Indonesia could borrow money from a pool of global liquidity on their phone without having to leave the house and then use that money in the village or for online payments.

When you start to unpack the steps needed to make that possible, it becomes clear why defi as a solution to banking the unbanked is such a challenge. First, the farmer needs to own cryptocurrency that they can use as collateral for the loan. That means setting up an account on a local crypto exchange, funding it via a cash transaction at a convenience store, and then buying crypto on the exchange. All of this requires, at the very least, financial literacy and trust in crypto.

And so on it goes until you realise that the barriers to adoption are quite high. This is one of the reasons why the latest iteration of defi projects are targeted more at people with the knowledge and existing crypto holdings to yield farm. (A cynic might suggest that the recent episode of defi project hysteria is nothing more than a cash grab.)

How has it turned out so far?

Going by the numbers, defi is doing well. With $9 billion and counting already locked into various protocols, it is far and away the leading use case for blockchain and cryptocurrency.

As an active user of some defi protocols and projects, I can’t help but note how “cool” it feels. I can borrow against my crypto holdings without having to visit a bank, buy fractional real estate without the bureaucracy, transact in a stablecoin independent from central banks, and participate in the governance of mutual insurance platforms. This is much better and more convenient access to financial services than I’ve ever had before.

And this is just the start. Defi is catnip for the world’s brilliant financial and technical minds. With programmable money, there are no restrictions on what’s possible. Today’s proliferation of defi projects is only scratching the surface of what’s to come.

But there is a problem I find hard to overlook: defi isn’t helping those who find themselves, for whatever reason, excluded from the financial system. These 1.7 billion unbanked people — a number you see quoted so often — are not the ones benefiting from defi.

A playground for the privileged

Instead, defi is very much the domain of those with technical know-how, financial literacy, and disposable income. It’s making financial services more accessible to a small subset of the population. Everyone else either doesn’t trust it, doesn’t understand it, doesn’t have the money to use it, or some combination of the three.

Defi is also creating a new yield farming elite. These are the people who have the resources to take advantage of all the “free money” being offered by protocols in the form of governance tokens. One such protocol issued 30,000 governance tokens to key users. At the time of writing, each token is worth $23,000. That’s almost three-quarters of a billion dollars in wealth created out of thin air.

Thing is, someone has to foot the bill for this new wealth — finance being a zero-sum game and all. Sadly, it is often the people who were late to the party and simply buying the hype. Yet another reminder of the 2017 ICO craze.

Ever-increasing complexity

At some level, defi is supposed to make things easier for people. Instead, the DIY-finance approach is only going to get more complex. Just the terminology alone is enough to keep people away. It’s difficult to trust something you don’t understand, particularly when there is money involved.

Fintech solutions that leverage defi should help lower the complexity, but then we’re back to trusting centralised entities with our money. Defi was supposed to be different, however it requires a level of effort that I’m not sure the unbanked are ready for.

Insane GAS prices

Ethereum is the network on which much of today’s defi action is taking place. This has meant massive congestion on the network as stablecoins, protocols, and scams fight for mining resources. And while all this activity is great for miners, transaction costs (called GAS) have skyrocketed.

There were anecdotal reports of a single smart contract interaction costing well over $100. Even a basic transaction from wallet to wallet was up over $5. GAS prices have abated somewhat since, but are still well above historical rates. What this means, of course, is that small volumes become infeasible.

Let’s say I want to borrow $50 from a lending protocol at 3% interest so that I can purchase another asset paying 9%. Normally, it would cost $0.15 — an amount still too high, but that’s another story. These days, the cost would be well over $10.

We can assume that these high GAS prices won’t last forever — Ethereum has a planned upgrade for next year that should drastically reduce transaction costs, and other, cheaper networks will become more attractive to defi projects. Until then, defi will remain the domain of those who can afford the transaction costs.

Governance in the hands of the few

As defi protocols look to decentralise their governance mechanism to put power in the hands of the community, the path most often chosen is: the more money you have in the protocol, the more governance tokens are distributed to you, and the more votes you get.

The logic is clear. The issue is whether it makes sense to mimic the existing system or, given the opportunity that defi presents, try to forge a new system that is more equitable. In the case of the lending protocol, the person with $1 million locked in will have a much greater say than the person with $10.

In my mind, this approach is exactly what’s wrong with modern capitalist democracies. Those with the most resources have a significantly larger impact on policy than those with few resources. Why, then, would we design decentralised governance to reward those who have a disproportionate share of resources? This runs contrary to the democratic ideal of one person, one vote.

This is not to say that there is an easy solution. Sushiswap recently tested an approach in which each wallet could vote for the nine signers of the protocol’s multisig wallet. These 9 individuals are, effectively, a board of directors for the protocol. Naturally, theories of resource-rich individuals delegating voting power to “protocol politicians” were soon to follow.

Where do we go from here?

A World Bank study found that the number one reason (70% of respondents) why adults didn’t have a bank account was because they felt they didn’t have enough money to justify opening one.

The interesting thing is that defi has the potential to help. Putting the centralisation/decentralisation argument aside for a second, fintech companies can tap into defi protocols to provide financial services to rural areas while making the user experience simple and convenient.

The problem, I fear, is that these solutions will end up neglecting the unbanked the same way that banks do. Why?

Money.

It’s expensive (and not profitable) for banks to set up village branches or reach rural farmers. It’s no different for fintech companies and defi protocols. Nobody wants to spend money educating and building trust without a return.

Defi, and the solutions that leverage it, has a chance to be different. Sadly, it appears to be yet another victim of our exclusionary financial system.

The post Who is decentralised finance really helping? appeared first on Redhill | Global Communications Agency.

With roughly half the world under some form of lockdown, consumers have been forced to go digital. Organizations that have been mulling a digital transformation now find themselves without any choice — what they need is a pat on the back from governments.

Of all the disruptors we have come across in the 21st century, COVID-19 is probably the most unprecedented and devastating. Both health- and economic-wise, it has swept us off our feet and we now find ourselves in a puddle of global economic crisis. But with crisis comes an opportunity that most organizations have been reluctant to pursue in recent years — digitalization. A silver lining if ever there is one.

Leapin’ over the digital divide

For long, organizations have been procrastinating digitalization because there is simply too much disruption associated with it, both in regard to the organizations’ internal structure and their business model.

One of the challenges that businesses have often faced during digitalization is that it required their customers to go digital as well — something that should happen organically rather than forcefully. And this organic progression of the customer’s technoliteracy follows an arch, with one end tied to the customer’s need and the other to the solution offered by businesses.

It was also not the most encouraging ecosystem to either fully accelerate the digitalization of businesses or to address the compliance and labour challenges that may arise out of it. Most businesses went into staggered phases of digitalization and automation, while some even stalled it.

All of this happened because governments, at least in most regions, never completely addressed the challenges of digitalization that their economies would one day inevitably face

COVID-19 has remarkably, and in some cases irreversibly, changed the status quo. Customers can no longer afford to not go digital. The pandemic has caused the customer to sprint through the A to Zs of technoliteracy and leap over the digital divide in a stunningly short span of time.

This abrupt change in consumer behaviour is establishing a new normal that would now allow (read: require) businesses to accelerate their digitalization. This sort of disruption has even disrupted the disruptors. Cab-hailing services are now offering financial aid to help their communities brace the economic impact, while home-rental companies are forced to rethink their business models around the pandemic.

However, the most disrupted of them all are governments the world over. Yet, surprisingly, they are leading the change this time.

Hotwiring the machinery

Take India’s public distribution system (PDS), for example — one of the largest delivery mechanisms of foodgrains anywhere in the world. The State of Kerala has announced that citizens can now get a ration card — a document that connects citizens to the PDS — within 24 hours. Something which usually took the behemoth weeks, if not months, is now processed in a day’s time. The technology existed, only the necessity did not.

Survival of the quickest

The survivors of this pandemic are going to be the ones who are the quickest to adapt, and the rule of natural selection seems to hold true for businesses and governments too.

This is best illustrated by the growth of the telemedicine sector in India which got a shot in the arm during a nation-wide lockdown. The Indian government promptly announced a set of guidelines for telemedicine service providers to follow which could very well become the framework for an industry that is now inching toward its moment of glory. Even the National Health Mission (NHM), with its bulky presence of over 3000 healthcare centers in over 1000 cities, will soon roll out its own telemedicine service.

As universities in India contemplate digital pedagogy and the effectiveness of online classrooms, ed-tech platforms in India are already collaborating with the country’s council for technical education by offering the Council’s content for free. In a country with the world’s largest population in the 5–24 age bracket, this looks like the beginning of a beautiful friendship.

But beyond spontaneous order, this is a resurgence of India’s startup market — and it needs to be nurtured.

Chaos leads to order

Leaders across the world are exploring ways to live with the virus for a long time to come. This would require governments to rejig the way they do business with their citizens, corporates, and communities.

With the threat of prolonged economic slowdown hanging over them like the Sword of Damocles, governments are pulling out all the stops to cut costs, boost growth, and adapt fast.

In his LinkedIn article on life in the era of COVID-19, PM Modi makes his case for how India can emerge as an agent of change in these trying times. The rhetoric now needs to be reflected in a supportive digital ecosystem where startups can thrive and businesses can bounce back from the economic impact of COVID-19.

The Personal Data Protection Bill of 2019 will allow a framework for startups to operate and organizations to accelerate their digitalization. The government’s decision to codify the labour laws can also help companies adapt to changes arising from digitalization, particularly regarding the rehabilitation and re-skilling of the workforce and the scope of public-private sector participation.

A conducive regulatory environment and policies are more than rewarding. For example, the World Bank estimates that a 10 percent increase in fixed broadband penetration triggers an average increase of 3.19 percent in per capita GDP.

With an internet subscription base of 687.62 million, India has about 450 million smartphone users and 550 million feature phone users. India’s UPI alone clocks around 5 billion transactions a year, and the country’s digital payments volume is expected to reach a massive $135 billion by 2023.

Even the number of digital streaming users in India is expected to reach 368.8 million viewers by 2021 — that is more than the current US population.

The numbers tell a success story that is yet to be written, but a lot of that will depend on how the country’s digital ecosystem fosters enterprise.

Whether we are prepared or not, the next wave of digital transformation is already here, and we should all try not to get washed up. It is also one way to beat the virus — by improvising.

The post Consumers are going digital during COVID-19 appeared first on Redhill | Global Communications Agency.

The coronavirus had been on our collective radar since we first heard the stories coming out of Wuhan. We watched closely as it began to spread, unsure of what the future would bring.

Then the number of confirmed cases skyrocketed — seemingly overnight — into the thousands in Italy, Iran and South Korea.

Words like ‘social distancing’ and ‘contact tracing’ suddenly became commonplace in everyday conversations; face masks, in some countries, were the new must-have accessory. People ventured out less and stayed at home more. Anxiety was simmering beneath the surface, covered up by a facade of calm.

As the spread and daily number of cases continued to rise, so too did the number of countries under some form of movement restrictions. Companies that could support remote work found themselves having to transition quickly to a completely new normal, to varying degrees of success.

We at REDHILL had anticipated this seismic shift and prepared a plan that would allow us to protect and support our REDHILL family while doing our best to continue business as usual.

Preparing for WFH

Remote working was not new to REDHILL. We’ve always believed flexibility and efficiency is key to getting the best results, so our employees are allocated WFH days if they need them. And long-distance collaboration was already common between our international offices — made possible via tools such as Slack and Google’s G Suite.

Our initial plan was to initiate a “split-team” arrangement to keep the number of people in our offices to a minimum. Employees signed up for days/times in advance to avoid any scheduling issues. This plan was short-lived, however.

Malaysia was the first of our markets to implement severe movement restrictions, doing so on March 18th. We immediately shifted to a WFH arrangement there. We also knew that our other markets would quickly follow suit, so we encouraged our employees to WFH before restrictions took effect.

Sure enough, Sri Lanka imposed a nationwide curfew on March 20th, Germany and Thailand implemented movement restrictions on March 23rd, and Singapore initiated a “circuit breaker” on April 6th. In each market, our employees were prepared in advance for what has now become reality.

Coping with physical distancing

Despite our prior remote work experience, widespread movement restrictions and working full-time from home have still presented difficulties for our staff on both a personal and professional level.

As a company, we made it a core focus to facilitate the transition to remote work and alleviate the stress associated with movement restrictions and subsequent extensions. We employed several initiatives, including:

Workflow optimization

We know that WFH is difficult enough without inefficient processes causing further frustration. Therefore, we have streamlined our workflows to maximise efficiency and adapted our processes for a remote workforce. We increased our use of digital tools such as Google Forms, and introduced new platforms such as DocuSign. We re-evaluate these workflows and processes frequently and encourage feedback from our employees.

Helpful WFH tips

Within a week of the implementation of movement restrictions, our HR team had issued an internal memo to all REDHILL employees with tips and tricks on how to stay productive while WFH. Some of the suggestions included sticking to regular routines for work and sleep, using the extra time to indulge in activities like reading and meditating, turning the laptop camera on for calls, and encouraging employees to stay in close communication with one another.

Daily virtual meetings

To address the lack of face-to-face interactions and increase in distractions, our Business Unit Heads (BUHs) hold virtual morning meetings with their teams every day. Like conventional scrum meetings, these catch-ups are only 15 minutes long and allow teams to keep each other updated on any work or personal issues. They also provide a good excuse to socialize with colleagues and see familiar faces, especially for those who have been WFH for a long time. BUHs also hold training sessions to continue the knowledge transfer that existed prior.

Mental health as a priority

At the time of writing, some of our colleagues have been WFH for more than a month and a half. Many have reported struggles with stress and anxiety from a lack of social interaction, separation from loved ones, reduced physical activity, and a drop in motivation. Our BUHs have encouraged their team members to speak up about any issues they are facing in one-on-one or group sessions. Recently, we held a session for our employees in Singapore to share their frustrations and coping mechanisms, and we will soon do the same for our other employees around the world. It is important to us that our employees know that they are not alone and that we are ready to support them if they need it.

Increased employee engagement

To strengthen relationships, boost morale and reduce feelings of isolation, our teams have tried various forms of virtual engagement to create new shared experiences to bond over. We have had a Dalgona coffee challenge, done online puzzles together, rocked out in jam sessions, shared pictures of our culinary masterpieces, and organized after-work hangout sessions to catch up. These interactions are a nice reminder that there is so much more to our employees than just their jobs.

Customized work backgrounds for video conferencing

Separating professional and personal environments can be a challenge when conducting video calls. Luckily, Zoom allows users to set custom virtual backgrounds, and our designers were very quick to come up with a REDHILL-themed background. Not only does it help our employees maintain a professional image, it also protects them from whatever might be happening behind them.

Regular routines

We continue to observe our regular working hours and protocols to help employees maintain a sense of routine. Our virtual morning meetings are held at the same time every day and end as scheduled, lunch hours are respected, and staff are not required to work or answer work communications after closing hours.

The new normal?

Coronavirus has prompted the largest remote work experiment we have ever seen. As people and companies continue to adapt to this new reality, questions are being raised over what work will look like in a post-coronavirus world.

The headaches faced by businesses unable to operate during the pandemic suggest that things will not just go back to what they were before. WFH may very well be part of the ‘new normal’ and a key characteristic of a more resilient company.

Regardless of what the future looks like, one thing still holds true for REDHILL: our people are the heart of our organization. We firmly believe that it is the natural responsibility of any company to support its employees in times of crisis. We will continue to find ways to do so, whatever challenges may come our way.

The post Our story of working with the new normal appeared first on Redhill | Global Communications Agency.

Walk down the street in Jakarta, Kuala Lumpur, or Singapore and you can’t help but notice the number of e-wallet service stickers on display at coffee shops, convenience stores, and any other merchants you happen to pass. It’s a curious phenomenon, and indicative of the desire for tech companies to eventually become a bank.

The surge in apps has reached inundation levels for both consumers and merchants. In Malaysia alone, 43 such licences have been issued — a mind-blowing number in a market already well served by bank cards.

Competition, in turn, is fierce. Local startups vs. global players vs. crypto companies vs. lifestyle apps, with little differentiation between them in terms of service offering. But there is one additional contestant that it is about to enter the ring, and perhaps change the game entirely: the Goliath commonly known as Facebook.

What is an e-wallet?

e-wallets usually offer some combination of four things: 1) e-money storage and transactions, 2) credit and debit card integration, 3) custom debit card issuance, and 4) conversion of money into cryptocurrency

Some examples: in Indonesia, you can top up your Ovo account for spending at merchants; in Malaysia, you can receive a BigPay MasterCard that can be used wherever MasterCard is accepted; in Singapore, NETSPay integrates your bank cards for an easy, app-based payment solution.

Cryptocurrency solutions have yet to produce a significant player, but there is a Goliath lurking on the horizon that wants to change that.

Why e-wallets in the first place?

You might be wondering what the point of e-wallets is. Why use such a service when you can just whip out your debit card that is linked directly to the account you get your salary in? Why go to that extra step of topping up your e-wallet balance from your salary account?

What about sending money to your friends? Maybe. Interbank transfers are cheap and easy, so the value-add of e-wallets is marginal at best.

If you’re one of the many people in the region without a bank account, there’s a much stronger use case. However a case still needs to be made that trusting your money to a private company is the best alternative to a bank (or simply carrying cash).

Not surprisingly, these e-wallet providers use discounts, interest payouts, rich budgeting and security features, and rewards to build a user base. Merchants are induced by zero or low fees — made possible because transactions take place outside of the fee-laden card payment network.

There’s a lot to like about e-wallets, but their utility, particularly in rural areas, remains questionable.

Crypto to the rescue?

Enter crypto companies and their hyperbolic promise to bank the unbanked. There were suddenly hundreds of cryptocurrencies and soon-to-be dapps offering a litany of decentralized financial services, from lending to micro-payments. Low or non-existent fees was a major selling point. So was the idea that there were no barriers to access.

Except there were. Volatile tokens, high fees, long wait times, need for technological know-how, and multi-step onboarding all contributed to a dramatic reality check.

No player has so far emerged as a competitor to centralized electronic fiat solutions. There are some promising projects focusing on usability and the need to transact in a stable cryptocurrency, but they have yet to gain traction.

Even when a player does emerge, there is still the issue of building a consumer and merchant network. It’s hard and expensive work to convince people to use and merchants to accept a cryptocurrency that isn’t their national fiat currency.

Lifestyle apps take centre stage

When Grab and Go-Jek — two of Southeast Asia’s largest lifestyle apps — launched, processing payments within the app was a crucial selling point. The two services offered card integration as well as the ability to top up your in-app wallet at merchants or using your bank account.

The logic made sense: handle the payment behind the scenes so that riders and drivers don’t have to exchange cash. If you’ve ever been in a situation where the driver doesn’t have change for the large-denomination bill you just got from the ATM, you’ll understand how valuable this is.

But as the two services spread, along with the number of things you could do in the apps (order food, book a massage, deliver a parcel), people without bank accounts were now significant consumers and/or drivers. They were either paying cash, topping up their in-app wallet at merchants, or, in the case of drivers, receiving money to their in-app wallet.

This set of circumstances presented an interesting opportunity: if the two services could link their in-app wallet to physical and online merchants, they could represent a legitimate current account/debit card alternative.

And so GrabPay and GO-PAY were born. In Indonesia, GO-PAY transactions totalled US$6.3 billion at 240,000 merchants in 2018. Ovo, Grab’s in-app e-wallet provider in Indonesia, has some 60 million users and 100,000 merchants.

And while these are impressive numbers at this stage, they have limits. Ovo, for example, is only available in Indonesia. What happens when a user goes abroad? The service is useless.

Piggybacking on existing merchant networks

If you can’t beat them, join them. BigPay’s solves the growth limitation problems by issuing a MasterCard as part of its e-wallet service. The service is only available to Malaysians for now, but leveraging MasterCard’s merchant network means millions of merchants are available to BigPay users.

This is the Revolut model. Combine the best features of an e-wallet — budgeting, spending tracking, analytics, savings, discounts — with an instant merchant network courtesy of MasterCard. Add in preferred currency exchange rates and you have a top-notch solution.

The problem: licensing requirements in each jurisdiction makes expansion difficult. Revolut has experienced this in its attempt to launch in markets outside Europe. (It did eventually launch in Australia, Singapore, and the US.)

The big international players

PayPal, Google, Apple, WeChat, Samsung, and the like. They are lurking, but so far haven’t made much headway in Southeast Asia. WeChat Pay is already in use in Malaysia, while both Alipay and WeChat Pay have received licences to operate in Indonesia. In Singapore, Apple Pay, Android Pay, and PayPal are in use and somewhat popular.

With the exception of WeChat Pay and Alipay, the other solutions are global in scope. It’s unlikely that they’ll emerge victorious in Southeast Asia. There are other, more lucrative markets to focus on. WeChat and Alipay certainly have the clout to develop a merchant network, but will likely run into trouble courting users when local options are available.

Goliath on the horizon

If there’s one thing no other e-wallet service can boast, it’s a network of 2+ billion people. Every other player has had to build its market from the ground up. Facebook already has it. And guess what? Facebook’s users would love a way to transfer money to each other in apps they already use frequently.

Enter Project Libra and its roster of proposed stablecoins.

What Facebook is trying to do comes as no surprise. Payments is the last frontier of world domination. It’s one thing to know where people are and what they think, like, and feel; it’s quite another to know where they spend their money.

And not just where, but how much. If you think Facebook knows you well right now, wait until they are privy to your spending habits.

That is terrifying. The idea that Facebook could become the world’s largest and most convenient bank with unprecedented access to every aspect of your life should make your skin crawl.

But that shouldn’t detract from the potential utility for the unbanked users of WhatsApp and Messenger. Near-free remittances, integrated transfers, and the ability to keep some portion of your funds in a currency not subject to local economic policies. These are tangible benefits that will help people.

And all of this is exactly why regulators have been so skittish about Libra from the get-go and have forced Facebook to scale back the project from a global financial power to a PayPal clone but with fiat-backed cryptocurrencies instead of digital fiat currencies.

Who will win?

The imposter clairvoyant in me wants to bet on lifestyle apps like Grab and Go-Jek. It’s hard to live in Southeast Asia and not use these apps in at least one aspect of your daily life. Adopting the in-app e-wallet service in exchange for significant in-app discounts is a relatively easy step compared to starting from scratch with other services. The resulting user base is then a powerful tool of persuasion when talking to merchants.

But the limitations give me pause. Apps that follow the Revolut model are more flexible and cater to an ever-increasing number of Southeast Asian international travellers. If only the licensing requirements didn’t slow expansion.

For the smaller players, there will likely be a flurry of mergers and acquisitions as banks, mobile providers, and international players try to expand their user base and merchant network. Startups and niche offerings will get devoured like nasi goreng.

Cryptocurrency-based services, aside from Libra, could make inroads but will need to solve the usability problem before any sustainable growth can be achieved, not to mention the challenge of building a merchant network.

If Libra can get over the regulatory hurdles, it really does seem like this is Facebook’s battle to lose, not just in Southeast Asia but across the world. The company’s user base is huge and it has the clout to building a merchant network rivalling that of Visa and MasterCard in a relatively short period of time.

That said, Facebook dabbled in email in 2010, only to shut the service down in 2014 for a variety of reasons. Poor usability was one of them. Make the same mistake with Project Libra and the whole affair will become yet another promising project to find its way to the Big Tech scrapyard.

The post The e-wallet battle in Southeast Asia appeared first on Redhill | Global Communications Agency.

The coronavirus is a horrible crisis for humankind, causing an unprecedented impact on the global economy and taking lives around the world. For a number of people, the impact of COVID-19 will be felt for many years.

But in spite of the despair, it has been a catalyst for improvement in several areas. Here are 8 things that have changed for the better.

1. Remote work possibilities

For those of us who have the privilege to retain our jobs, coronavirus has succeeded in expanding the realm of what’s possible with remote work where countless initiatives have failed. Companies have had to swiftly embrace a remote work environment for their employees. Those that had traditionally rejected the idea are finding out that it is not only possible but often beneficial for both sides. No commute, schedule flexibility and efficient video calls all make the home office a great alternative to the regular office environment.

2. Digital innovation

A country such as Germany, often known for its economic leadership, has for years been lagging behind its neighbours in providing digital infrastructure. After just one month of the coronavirus, Germany had made more progress towards e-governance than at any other time in the past. All of a sudden, it is possible to send in applications via email (the days of the carrier pigeon are waning). Applications are being processed in record time and without any of the traditional bureaucracy. Universities have implemented remote teaching via video conferencing; therapists offer digital therapy sessions to their patients; paying by card has become the rule, not the exception. If coronavirus has taught us anything, it is that digital innovation is a matter of will, not skill.

3. Appreciation for thoughtful leaders

The last few weeks have shown us the importance of thoughtful decision-making in politics. German Chancellor Angela Merkel is not known for her rousing speeches, however it is this sense of calm that is much needed in times of crisis. Other politicians, such as Jacinda Ardern, Tsai Ing-wen, Moon Jae-in, Sanna Marin and Lee Hsien Loong, have handled the crisis with equal skill. The results of their actions speak for themselves.

4. Increased medical knowledge

Social distancing, super spreader, asymptomatic, serology and viral load — a couple months ago, these terms were unlikely to ring a bell with most people. Media coverage of every aspect of the pandemic has resulted in increased medical and epidemiological knowledge in the general population. People have learned to properly wash their hands while singing along to make sure they hit the 20-second mark. We now sneeze into our elbows, not our palms. We have stopped shaking hands, embracing alternative ways, like the elbow bump, to greet each other. And almost everybody now understands the need to practise social distancing.

5. The helping economy

Coronavirus has put the global economy in a situation unknown to almost anyone alive today. With the introduction of lockdowns, many parts of our economy have ceased to exist overnight. While businesses are suffering and the long-term ramifications are not yet clear, we have also witnessed how people have come together. Professionals share tips on how to work from home; free workshops are held to enable companies to cope with new challenges; hackathons bring together a diverse set of individuals working towards a common goal; business partners show leniency in helping each other stay afloat. Companies give away their products for free, donate face masks to medical personnel, or shift their focus to help with the production of much-needed goods. Indubitably, the economy has moved closer together.

6. Camaraderie

Many words have been written, said, and screamed over the last few years about how our societies are becoming increasingly divided. What coronavirus has showed us is that we still share common values, despite any political and cultural differences. People have moved closer together, paradoxically, while adhering to the rules of social distancing. Neighbours are helping each other, young people go grocery shopping for the elderly, and there seems to be less bickering and general recalcitrance. Life has slowed down. People are in less of a rush, more polite, and respectfully keep their distance. The majority of people are abiding by the rules and staying at home because they understand that this is a crisis only a societal effort can solve.

7. Mindfulness

For those social distancing or under lockdown, the long hours spent at home are not just about isolation. We are also re-discovering an appreciation for the things we take for granted, such as spending time with our loved ones, travelling, or going out to a restaurant. Much has been written about rising levels of depression in Western Europe and North America as a result of no longer having to face any real problems in life. The past has shown that a crisis, especially a deadly virus, can lead to an increased appreciation for life among the survivors. Such a crisis shows us that there are far more pressing challenges than, for example, the local Starbucks running out of soy milk.

8. Self-improvement

The time we used to spend outside the house can now be dedicated to self-improvement. People are taking up new crafts, like sewing, painting or dancing. They are learning to code, design or write. People are reading books they never had time for. Millions have taken up online workout sessions to stay in shape. We have understood that there is more to life than just being bored at home. And when this crisis is over, we will emerge better than we were going in.

The post 8 things coronavirus has changed for the better appeared first on Redhill | Global Communications Agency.

Working from home (WFH) is a new reality for a majority including me. I’ve been working from home for the past four weeks, give or take. The extra time at home combined with a limit on social interaction has given me plenty of time to muse. It has also been a time of reflection and recognition. I’ve put together five of my takeaways in this article.

1. Humans are social creatures

Interestingly I’ve observed the impact of social distancing in people who otherwise prefer staying home over meeting others. Given enough time, both introverts and extroverts crave social interaction and the company of others — albeit in different dynamics and numbers.

I’ve noticed my introverted friends who are struggling with the lack of socialising. I’ve been video chatting and playing online Scrabble with a very close friend who is not the biggest fan of socialising. A month into staying home, we’re now more in touch than we ever were — and we used to be housemates in Cardiff!

I’ve also received more SOS messages from friends and family who are struggling with their mental health as they stare down the nose of a seemingly never ending lockdown in their countries. Thoughts of panic filter in and out their minds as they contemplate social isolation even as the virus spreads at a frightening rate and countries extend their versions of lockdown.

2. Communicate, communicate, communicate

Following from point one, never has the importance of communication been more emphasised. Working from home has made me over communicate. I spend a lot more time on Slack, phone/ Whatsapp calls, Zoom meetings and even send more emails to ensure there is no miscommunication resulting from the lack of face-time. I used to dislike using video during conference calls but I’m all for it these days. Seeing the face of the person on the other end makes such a difference in our connection and conversation.

We now have daily meetings with video on for my team to catch-up with each other, and to flag any challenges they face either work-wise or personally as each of us adjusts to working remotely. I’m also doing far more 1-on-1 calls with my teams and clients to tackle the lack of in-person communications and any resulting miscommunication. It also helps with the challenge of “out of sight, out of mind”.

We even had a couple of virtual hangouts with team members across Germany, Indonesia, Malaysia and Singapore. The joy of seeing faces, other than of those at home, is unparalleled.

3. Take care of your people

Internal communication is another aspect that has been highlighted by the remote working situation. We live in an era where people are the biggest assets for most companies and businesses. Sadly, very few companies get it right in taking care of their people, and the current situation has certainly made the distinction.

It is heartening to see clients asking us for internal communications guidance in their efforts to keep staff informed through various platforms. This is quite a departure from the days of an occasional memo being circulated.

It makes me proud that REDHILL has taken all measures to keep our global teams safe and comfortable. HR has played a huge part in making this happen, keeping on top of the fast-changing situation in different countries, taking timely decisions and, most importantly, communicating to the REDHILL family frequently and clearly. A huge shoutout to Ann Marie and Niharica for working relentlessly to ensure our welfare.

4. Technology makes the world go around

We are so lucky to have such a strong technological infrastructure to tide us through this unprecedented situation. None of the above points would be possible without technology. Countries and companies that have lagged in digital transformation are now feeling the pinch. Many are scrambling to equip themselves with the necessary technology to enable the largest work from home experiment the world over. Companies, majority of them start-ups and SMEs, are rising to the challenge. The industry disruption that was being frowned upon is now being welcomed with open and eager arms.

The rampant use and reliance on technology brings with it issues of cyber security. Zoom-bombing and increased system hacks are two such examples. It is a good reminder that as technology evolves, we need to always ensure security evolves to keep up with it. Cyber threats are not a matter of if, they are a matter of when, as we embrace technology in all aspects of our lives.

5. Stay grateful, stay humble

We are in a new decade, living in the best of the technological and research age. Yet we find ourselves in the throes of a pandemic. A pandemic that has brought our lives to a halt, regardless of religion, social class, education, wealth or geographic location. It’s a stark reminder that we are all the same at the core of it.

Personally, this experience has renewed a sense of gratitude for me. Never before has my privilege been so apparent as I sit in my air-conditioned room in a country where the WiFi never disappoints, typing my thoughts on a laptop while enjoying the warmth of my dog curled up against me. I am so grateful for all that I have even as the world is turned on its head –family, friends, a dog, a job I love, a wonderful team, food on the table, music, books, movies and so much more that I take for granted.

The post Sitting in, thinking out appeared first on Redhill | Global Communications Agency.

Every time you open an app, use your GPS, or like a Facebook post, data is gathered, labelled, and filed so that it can eventually be fed to algorithms that tailor the advertisements you see and are supposed to find useful. Search for restaurants often enough on Google Maps and you’ll start seeing ads for options to eat out fitting the profile of those you visited before. Start liking Facebook posts about various travel destinations and the social network will eventually deduce that you are interested in travelling to exotic places every August.

This is what those in the business call “microtargeting.”

Micro what?

Okay, let me clarify it like this: Microtargeting is the attempt to send personalized messages to potential customers based on their interests, emotional state, place of residence, current location, and even personality traits. Sounds awesome, right? But it’s not a new concept.

30 years ago, the personalization of political campaign messages based on postal codes was revolutionary. 20 years ago, brands and political parties targeted households without having a clear idea of who they would reach and to what effect. 10 years ago, that “Internet thing” really kicked off with re-targeting ads — you view a website and a minute later you have the brand’s ad in your social stream. Today, the evolution of personalization has reached microtargeting.

This increasingly precise approach for targeting specific groups of people is made possible by the collection and evaluation of gigantic amounts of information, keyword: Big Data. Progressing digitalization and the global success of social networks enable companies such as Google and Facebook to create detailed user profiles and then sell them to advertisers.

No longer are target groups addressed based on their age or gender alone. With people’s interests and psychological predispositions added to the formula, advertisers promise more effective results for every dollar spent.

Oh how John Wanamaker would rejoice. He once stated, “Half the money I spend on advertising is wasted, the trouble is, I don’t know which half.” Well now he knows, doesn’t he?

But microtargeting isn’t as easy as it sounds.

Just as some people hold vigil at the altar of microtargeting, others are looking to bury it before things get too invasive. Sure, microtargeting gives advertisers myriad options for targeting specific people, but at what costs? Should we really sacrifice our freedom just for the “luxury” of seeing personalized ads?

So is it good or bad? Here’s my take:

The concept is great

We see hundreds of ads daily, many of them misplaced, useless or downright weird. I see more pet food advertisements than I care to remember — all of them a complete waste of money.

Microtargeting eliminates this issue because the data should know that I don’t watch cat videos on Facebook, never liked a post about a dog, and never appeared in a photo with a pet (that Grizzly bear shot from Canada was not a pet, FYI). This is great for advertisers because they can save money by only showing ads to people who might be genuinely interested.

It also means that I can finally see ads that interest me: inspiring travel locales, rugged outdoor clothing or delicious chocolate. These are the ads I want to see. I might even watch the video ads until the end because I am actually curious to see what kind of chocolate I can store in my rugged outdoor jacket while hiking the Inca Trail.

You might call this a win-win situation. Everybody is happy.

If only it were that easy.

The concept is also terrible

Now that we’ve established that microtargeting is beneficial for everybody involved, we should shed some more light on the negative aspects.

Even today, most people still have not grasped the implications of using “free” online services. That no payment is required for services like social networks, online newspapers, and email is often too enticing given the utility of the platforms. Many don’t even realize that they are not the customer, but rather the product. And as the product we are analyzed and sold.

“Big brother is watching you, but he’s no longer a dictator; instead, he’s a desperate and persistent door to-door salesman. Call him Big Salesman!”

For many consumers it’s scary to be targeted based on their psychometrics (fancy word to describe a human’s personality). Not that social networks and search engines care. They have no problem collating much of your online activity to increase personalization options for advertisers. And the more information you provide, through searches, downloads, likes, comments and shares, the more accurate your psychometric profile will be.

This simple rule explains why social networks actively encourage their users to reveal as much information about themselves as possible (ever answered a quiz about which kind of cheese you are?). The more accurate the data, the higher the potential financial return.

But why is this a problem? Because Facebook and Google know more about us than our friends, family, and spouse. Every click, every photo, and every website visit is analyzed. And while most of our friends wouldn’t sell us to the highest bidder (hopefully), social networks are more than willing to do so.

As we become increasingly “transparent citizens,” the question we should be asking ourselves is whether giving away all of this data is worth the targeted ads that we’ll supposedly see.

The concept doesn’t even work

The success of microtargeting is mainly based on the narrative of “reaching the right people.” Conventional advertising is limited in its ability to target, whereas microtargeting only targets warm leads.

But what constitutes a warm lead? Can advertisers trust the quality of the target groups available to them? More to the point, can Facebook really deduce your personality traits from your online behavior?

Once again, the answer is not a straightforward yes or no. Studies appear to show that “With only a person’s Facebook likes […] AI could reliably predict sexual orientation, ethnicity, religious and political views, personality traits, intelligence, happiness, use of addictive substances, parental separation, age, and gender.”

This sounds a bit far-fetched, right? Yes, the studies could predict some of those traits, but “reliably” is an exaggeration. If the margin is 52% to 48%, it might be statistically significant, but it’s still useless because the answer would be wrong almost half the time.

If you want to know what Facebook thinks about you, it’s not hard to find out. There are several tests, one of which was developed by the scientist inthe above study, Michal Kosinksi. His Apply Magic Sauce test analyzes your personality based on your online behavior. To do so, you must download your own Facebook history — a multi-GB file that is, quite frankly, eye-opening.

Once the results come in, you’ll either be shocked or amused. I was amused.

“Your digital footprint is fairly androgynous; it suggests you’re probably female, but you don’t repress your masculine side — 60% female”

Good to know! Last time I checked, I was more on the male side of the spectrum.

“Your digital footprint suggests that you enjoy and actively seek out social occasions, but would say that they’re not everything. You might say that sometimes it is nice to step back for a while and have a quiet night in.”

No, I don’t. I don’t like going out. I am utterly misanthropic. Wrong again.

[insert table picture]

This table tells me that I am more or less average in every aspect. But is it true? I’d like to believe that it’s not.

There could be another reason for the results: my data. I am not overly active on social media: left a of couple likes on some pages years ago and rarely comment or share. Occasionally I’ll post a photo or video. It stands to reason that my limited activity is not sufficient to generate a detailed picture of me. I am, therefore, not the ideal consumer for microtargeting efforts. The same can be said for a significant number of others, especially those who are more mindful of their online behaviour.

So, what does it all mean?

Should you ignore microtargeting because it is ethically questionable and not always accurate? Or should you allocate your entire budget to personalized ads?

If you’re concerned about ethics, remember that people use those services of their own free will. Nobody is forced to use Facebook. You do not have to agree with me on this, but for me that means the data can be used.

As to the inaccuracies, microtargeting is better than simply using age, gender, or area code. There will always be some mistakes, but the hope is that the success rate, and ultimately the ROI of your ad spend, will be higher.

Should you go all-in on microtargeting? Please don’t. This is product- and brand-dependent, of course, but you should never limit your communication efforts to a single channel.

Microtargeting should be considered a new, shiny tool in a marketer’s toolbox. It can help tailor your message to a more specific audience and increase ROI. However, it’s important not to get carried away simply because it’s new and shiny. It’s not a silver bullet. Learn how to use it, understand its benefits and pitfalls, and allow it to complement your advertising activities.

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