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Twitter’s shifting winds. Dead Social Media Walking?

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I never was much of a Twitter fan. Years ago, people whom I respected for their business savvy told me I had to start using it.

“But I don’t want to,” I responded. “It seems so pointless. ‘I had scrambled eggs this morning.’ Who cares?”

“You don’t understand,” my career-advising friends told me. “You have to, if for no other reason than to build your brand.”

Well, I hadn’t known I had a brand, but apparently I did. But why did I have to build it? And why through Twitter?

Yet I dutifully did as I was told. I signed up for Twitter and started tweeting, although I never liked it. Before long, I had thousands of followers.

That was success of a sort, I guess. But I never did figure out what to say on Twitter. Facebook was totally different. It felt freer, more open, more wide-horizoned. Twitter by contrast felt as confined as a procrustean bed.

And then of course there was this blog, which afforded me all the opportunity I really wanted to communicate instantly and intelligently with others through social media.

Apparently, I wasn’t the only one who didn’t love Twitter. There’s been a spate of media reporting in the last few days about the company’s problems. On June 11, CEO Dick Costolo, under fire recently for Twitter’s failing to hit revenue and profitability targets, resigned (or was pushed out; who knows?).

On June 12, Twitter’s stock price was at $35.90, its lowest in more than a year despite a surging stock market. On June 14—yesterday (and coincidentally my birthday)–one of Twitter’s biggest shareholders, Saudi Prince Alwaleed bin Talal, told the Financial Times than Twitter’s next CEO, whoever he or she is, “has to have tech savviness, an investor-oriented process and a marketing mentality.”

Things have gotten so bad that a Harvard professor recently called Twitter “the BlackBerry of social media.” (Ouch!) BlackBerry’s stock has basically flat-lined for the last three years.

What’s the problem? It was described well on the Washington Post’s Wonk Blog: It’s virtually impossible to separate the wheat from the chaff. And on twitter there is a lot of chaff…up to 90% of a typical twitter feed is basically a waste of everyone’s time.”

I’ve been a big advocate of social media for wineries for years, although I never drank the Kool-Aid that some people apparently did, who thought that social media (and especially Twitter) was the greatest marketing tool ever. My attitude was, social media can’t hurt. If you have a few minutes during the day, you might as well do something on Twitter or Facebook or Instagram or Pinterest. Who knows? You might actually drum up some sales. But I never thought social media should be anyone’s fulltime job, unless the winery is so well-heeled that they don’t care.

I think these latest travails of Twitter represent a tipping point of sorts. Social media flared up in the mid- and late 2000s like a wildfire sweeping across a drought-stricken plain. It seemed for a while that everyone in the world was going to abandon traditional forms of communication and go digital.

But perhaps the wildfire has now consumed much of the fuel that gave it breath. We in California understand the behavior of wildfires. They rage only for as long as the dry offshore winds drive them. But the wind always shifts; once an onshore pattern kicks in, the wind sends the fire back over land it has already consumed; and the fire, deprived of fuel, dies.

What wind is blowing social media now, and in which direction? We may have only to look at Twitter to discern the answer. And the lesson for wineries (there always is one)? Be smart in your choices of which social media to use, and how often, and at what cost. There is, and always has been, lots of chatter out there to convince you of its value. While this chatter has been enthusiastic, it has not always been accurate.


Is social media losing clout?

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There’s a running joke on the great HBO series, Silicon Valley, to the effect that the only tech company that’s worth investing in is one that’s losing money.

If that’s true, then social media companies must be doing really well. However, in the case of Twitter, LinkedIn and Yelp, that doesn’t appear to be the case. The stock value of all three has gone down significantly lately, causing the San Francisco Chronicle to headline an article, “Is social media losing favor? Stocks dive on weak results.”

The issue, says the report, is “whether social media companies can keep their growth rates vigorous enough to justify their valuations.” Underlying that problem is the continuing challenge for these companies of how to maximize revenue, when their basic services are free for everyone to use. Yelp, for example, reported that ad sales have slowed down, making it harder to make money; Yelp’s CEO said the company is responding by “seek[ing] ways to increase engagement and drive awareness” in order to boost “local advertising.”

Well, “seek and ye shall find” may be basic Biblical advice, but it doesn’t always work in the real economy. I think what we’re seeing in social media is the same sort of consolidation that every other industry has experienced, with smaller firms getting driven out or gobbled up, as the giants expand their power. Facebook’s stock, for example, has been on a tear for the last three years, more than quadrupling, thanks to continued growth, including from Instagram, which it bought in 2012.

Twitter is an interesting example of a social media company, perhaps the prima facie one, whose actual financial performance consistently lags behind the weltanschauung it has created for itself in the popular culture. “Early hopes of rapid user growth were rapidly dashed,” reports the online news site, Fusion.

As a result, the company decided to concentrate on other metrics, like ‘audience’, which would count not only people using the service directly but also non-users and logged-out users who encounter tweets in any number of different contexts.”

This sleight-of-hand reminds me of the numbers game some bloggers were playing a few years ago, with sites competing with each other based on metrics like hits, unique visits, page views and so on. I was always asking the question, What difference does it make how many hits you have, if you’re not making any money? And I was always told not to be silly, because the big-number sites would eventually make money, and plenty of it, so I should keep my mouth shut.

Well, here we are, with some of the biggest big-number social media sites in America still struggling to make money, with no apparent solutions in sight. This is why the Fusion article suggests that Facebook buy Twitter, in order for Twitter “to remain relevant over the long term.” The theory is that Facebook, which has figured out how to make the Facebook experience “personal,” could transfuse that personality into Twitter, which—however much you may like and admire it—is about as personal as a classified ad.

Still, even if it were, would that make Twitter profitable? It couldn’t hurt. But figuring out how to create a revenue stream remains the single greatest obstacle to social media sites. If they can’t figure it out, they’re going to have to change direction and become something else, if they want to survive. There’s evidence this is already happening. The Wall Street Journal recently reported that Instagram is making money from an industry not usually associated with the personal warmth and fuzziness of social media: “the commercial real-estate brokerage business,” with real estate giants like Cushman & Wakefield “using photography-intensive Instagram for branding purposes.”

I suspect my young friends in Oakland, who love Instagram and are part of the cadre that made it popular, will continue to put up pictures of their tattoos and dogs on Instagram, but you have to wonder if their dedication will survive Instagram’s transition to what they may interpret as a rapacious corner of entrepreneurial capitalism and hype. How Instagram, and by extension social media in general, straddles that stool is going to be interesting to watch.


Connectedness: the Holy Grail of winery marketing

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Last week, while Americans were watching developments concerning the Comcast-Time Warner Cable merger, which eventually (and thankfully) collapsed, another more successful merger went almost unnoticed. That was the marriage between Blue Bottle Coffee and Tartine Bakery, a far happier union that consumers could celebrate, instead of worrying about.

Blue Bottle was founded in my hometown of Oakland and now has cafés throughout the Bay Area, L.A., New York City and Japan. It’s become what Starbucks used to be: the hippest java joint around, one of the high-end coffee industry’s most respected roasters,” according to Fast Company, an appraisal shared by Bloomberg Business, which described Blue Bottle as “the next wave of artisanal coffee shops” and reported on enthusiastic investments in the company by Silicon Valley tech giants such as Google, WordPress and Twitter.

Tartine Bakery sprang from the famous San Francisco restaurant, Bar Tartine, a Mission District hotspot that helped make the Valencia Corridor one of the city’s most visited dining destinations. Tartine’s bread makers earned the prestigious James Beard Award for Outstanding Pastry Chef. As wildly popular as the bakery is, Tartine has not been able to figure out how to expand to other locations. Blue Bottle has. The San Francisco Chronicle predicts the merger will “provide mutual benefits to both,” as consumers continue to seek out “well-crafted quality, locally sourced and planet-sensitive foods.”

There are lessons for the wine industry, particularly for family-owned wineries that want a more personal connection with consumers. Consumers do want “planet-friendly” things to buy. They do want quality that’s apparent, and preferably locally-sourced. But, maybe more than anything, they want a connection with the people who sell them products and services. Never in the history of American industry has that personal connection been more important. People—in their loneliness, idealism and confusion—desire to feel something human. Not the appearance of something human. Not something crafted in some P.R. shop that seems human. Something that is human.

Tartine and Blue Bottle (I’ve been to both) provide that connection to human-ness. It’s hard to pinpoint exactly how, or to describe it, unless you’ve been there; the blogger Kevin Lindsay has called it a “visceral reaction” that can create lifelong connections with the shoppers who can and will become compelling brand evangelists.” This is, of course, the Holy Grail for all companies, including wineries: to “create lifelong connections.” A lifelong consumer does not have to be marketed to with the same ferocity (and costs) as a new, unaffiliated consumer. This is the magic of branding: it’s why I met so many fans of Kendall-Jackson Vintner’s Reserve wines on my trip last week. It’s why the About Money website says branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.”

What a concept! So doable, and yet so rarely done. This is precisely the challenge wineries must confront, and solve, in the coming years, if they are to remain viable, in the face not only of domestic competition but international, as trade agreements erode traditional national boundaries and the entire planet becomes a single marketplace.

How is this to be done? Now that the clamorous exaggerations for social media have begun to calm, we can see that merely having a robust online presence isn’t nearly enough. Social media is simply a tool: put a chisel in the hands of Michaelangelo and you end up with David. In the hands of a child, a chisel is merely something to thump and bang with, and possibly do damage. To really connect with the consumer, you have to think like the consumer. You have to have empathy. You have to get out of your box and into the mind and heart of the consumer you hope to reach. That may sound New Agey, but, as Mark Benioff explains in this interview about his late friend and mentor, Steve Jobs, Jobs’ spirituality (inspired by yogic meditation practices and The Beatles) made the Apple co-founder “a prophet” who knew what consumers wanted even before they themselves did. Steve Jobs not only gave them what they sought, which was a way to increase their connectedness to the world, he made them—and the world—a better place.


Why online wine reviews don’t get more respect

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You’ve probably heard that Ashley Judd, a celebrity I don’t know much about but I like her anyway, is suing people who have been sending her horrendous tweets.

The brouhaha all started when Ashley, apparently, tweeted something derogatory about a basketball team, Arkansas, that was playing against her beloved Kentucky.

Imagine that! A sports fan talking smack about a rival sports team!

Well, that opened the floodgates. Ashley was inundated with some pretty awful stuff, most of which is unprintable on a family blog like steveheimoff.com : )

This raises the whole question of the abuse of social media. People do say the most terrible things—often, I think, while in a state of C.U.I. (commenting under the influence). It can be demoralizing to be on the receiving end of crap: I know, because I’ve been there.

Let’s talk about wine reviewing. A wine critic needs to have the trust of the people who read him or her. Without that trust, he has no credibility—and without credibility, who cares what he has to say? If you look over the history of where and how wine critics have published their opinions, you’ll find that they’ve been in extremely credible publications. Today’s top wine magazines are trustworthy; whether you agree with their reviews or not, whether you like the 100-point system or loathe it, the fact remains that such pubs as Wine Spectator, Wine Enthusiast, Wine Advocate, Wine & Spirits, Food & Wine, etc., are widely perceived to be, like Caesar’s wife, “above suspicion.”

The way for any publication to be above suspicion is to conduct itself respectfully. Professional pubs have internal codes of ethics that prohibit their writers from writing inappropriate things. And not just their writers: they also do not allow foul letters to the editor or slanderous, insulting comments on their websites. Professional publications, in other words, police themselves, in order to keep the conversation civil.

Social media, on the other hand, is pretty much the opposite. Anything goes; all is permitted; eliminating even vile comments is seen as onerous censorship. It was the very freedom of social media that attracted so many of us to it in the first place.

In the last couple of years, we have begun to see the dark side of this openness. When anyone can say anything they want to—no matter how odious or untrue—it is bound to detract from the credibility of the platform as a whole. In fact, that platform can even be viewed as having encouraged odious comments, for the simple reasons that (a) it enabled them, (b) it didn’t explicitly prohibit them, and (c) it didn’t remove them at once. This is the background to the Ashley Judd situation.

And this is why platforms like Twitter, Facebook and pretty much all the rest of them suffer from a credibility gap: If the worst people can use them to spout their stupidity and hatred, this necessarily impacts everybody who chooses to write something on that platform. It’s trickle-down sleaze, and like it or not, it tarnishes everyone.

Am I saying that online wine reviews aren’t accurate and informed? Not at all. I’m not talking about the content of online reviews; I’m talking about the platforms themselves. In the case of any individual online reviewer, you might have accuracy and integrity, but the fact that it appears on a platform that allows untrammeled inaccuracy and untruthfulness to flourish must necessarily make it suspect, or at least keep it from being as credible as it otherwise could be.

What’s the answer? I think we’re seeing something more professional begin to emerge online, with lawsuits like Ashley’s, and with social media platforms in general understanding that they have to do a better job policing themselves. But the problem of stupid, insulting tweeters cannot be solved from above; it has to come from the street. People need to understand that just because they can say something awful online doesn’t mean they should. When the more decent elements stand together to condemn our basest instincts from shouting, social media will advance. Until social media cleans up its act, though, it will continue to have about it the taint of unreliability and unprofessionalism, affecting even the best-intentioned of writers.


“Wine is sold, not bought”

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That’s the word from Michael Brill, who started up Crushpad years ago.

He was commenting on my blog post from yesterday, and when I read those words my brain fired on all cylinders because the phrase is not only pithy, it’s true, and made me think. What does it mean, “Wine is sold, not bought?”

Obviously, wine is bought. But selling precedes buying; you can’t buy something that someone’s not selling. And since everyone is selling these days in the wine industry, you clearly have to sell better than everybody else if you want to sell anything at all!

Well, that’s pretty obvious, isn’t it, but the point I want to make is that selling has become harder than ever nowadays, and so it requires smarter ways of doing it. You have to think outside the box. Everybody’s trying to think outside the box, which means that the space “outside the box” is getting crowded–it’s no longer “outside the box” but inside the box. (A little Zen paradox there…) So you have to get even further outside in order to be truly outside the box. That, in turn, means you have to know where the box is: which implies clear perception. Which implies knowledge, because knowledge is power. This is why the smartest people are generally the most successful in selling wine, and I don’t mean just I.Q. smart, I mean creative, visionary, driven, even a little mad.

Speaking of Mr. Brill, he’s launching a new business. It’s called Cruzu, and here’s how he explained it to me. (Any dumb mistakes I made in taking down his remarks are mine, not his.)

“It’s a crowd-funding source for wine, Kickstarter for wine. Independent winemakers and small wineries can create wines backed [financially] by wine enthusiasts. In exchange for backing, the backers get a combination of a good deal on the wine; they follow the winemakers and create a relationship with them. It’s a little Crushpaddy…”.

As with Kickstarter, Michael will list specific projects on the Cruzu website, projects brought to his attention by the winemakers themselves. If a project gets funded, it goes ahead; if not, it doesn’t. Michael asked me not to mention any names at this point, but I can tell you there will be some very good, high-level winemakers involved, some of them familiar from his Crushpad days.

Cruzu sounds interesting and very apropos for our times. With a recovering economy, people may feel like they have the extra cash for fun stuff like this. And the ethos sparked by social media—of interactivity, of connectedness, of wanting to be heard—is perfectly in tune with Michael’s idea of “creating a relationship” between wine drinker and winemaker.

I wish Michael, who’s always been an outside of the box thinker, well.


Stories, stories, stories at Unified

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Great time yesterday moderating my panel at the Unified Wine & Grape Symposium on “Content is King: How to Craft and Feature Stories that Stand Out.”

We had a good-sized crowd—it filled the better part of a ballroom—which tells me that people really have a desire to master this storytelling thing. For my part, in my opening remarks I made three points I think hold true:

  1. What is a story? What makes a good one? How do you figure out how to tell your own, unique story?
  2. Once you have a story to tell, you need a medium to tell it through. There’s print, of course, but also the whole range of digital. (And, as one of my panelists pointed out, your tasting room staff is part of your story!)
  3. Once you’ve crafted a story and told it through your preferred media, you need a way to see if it achieved the results you hoped for. This is, of course, the famous (or infamous) ROI everybody talks about.

I suppose we could have a seminar on any one of these topics, they’re so complicated and filled with possibilities. As it was, we had only 75 minutes to get through it all, a hopelessly inadequate amount of time. But one must try! I believe the audience got so much information thrown at them from the three speakers (each of whom had a PowerPoint presentation), it must have been hard for them to take it all in. All I ever want, in these sorts of public events, is for folks to leave feeling like they were glad they came, and that they learned a thing or two they can use in the future. In this case, I’m sure they did. They had so many questions afterwards, we didn’t have enough time to get to everyone because we had to leave the room so the next panel could convene. Later, at the bar, I ran into a young guy whose family started a winery. He’d been to my panel. He said they were having trouble figuring out how to sell their wine. He’d come to “Content is King” hoping to learn about some magic bullets. Alas, there are no magic bullets. It’s hard work, selling what you make. Not for the faint-hearted.

I ran into many old friends: Mr. Darrell Corti (such a legend, and such a gentleman), Nicholas Mlller from Bien Nacido, Rick Kushman from the Sacramento Bee, the fabulous Nick Goldschmidt, George Rose (snapping pix all over the place), Nancy Light, Rick Smith from Paraiso, down in Monterey, whom I’ve known and liked for a really long time, and too many others to mention. Rick Smith is one of those salt-of-the-earth guys. He was a founding farmer/father of Monterey viticulture and wine and in particular the Santa Lucia Highlands (whose appellation status he helped create). It’s always a pleasure to meet old friends, but it also makes you feel your age when you remember how long you’ve known some of these guys. But I also made some new friends, including Melody Fuller, who it turns out not only lives near me in Oakland, but is the founder of the Oakland Wine Festival, which I’d never heard of (shame on me), but seems like a great thing for Oakland. My city has become a real hub of excitement, of restaurants and bars and the most interesting people moving in, so it’s only natural for us to have our very own wine festival, which I’m sure will be a huge success.


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