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Artificial Endorsers

7/26/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Have you ever thought you saw someone you knew, went to talk to them, but found it wasn’t them?  That’s embarrassing.  Or, have you ever thought ‘someone’ was a real person, only to realize they weren’t?  This second kind of mistaken identity will become more common if one particular promotional trend continues.
 
In an age of artificial intelligence and deepfakes, it’s not surprising that some brands are promoting themselves using people who aren’t people.  Enter “virtual influencers”—digitally-developed endorsers who plug products not because they like the brand and want the money but because they were programmed to promote.
 
Perhaps the best known virtual spokesperson is someone/thing named Miquela Sousa, or Lil Miquela.  From the splattering of freckles across her youthful face to her complaints of cold temperatures outside, Miquela looks and acts like a real person; however, she’s actually an avatar, the creation of Brud, “a mysterious L.A.-based start-up of ‘engineers, storytellers, and dreamers’ who claim to specialize in artificial intelligence and robotics.”
 
The company crafted Miquela’s persona to be that of a “19-year-old Brazilian-American model, musical artist, and influencer”  who appears to hang out in hip New York and Los Angeles locales, with real-life celebrities.  The avatar’s carefully curated personal brand has made her alluring to millions of real-life fans, including more than 43,000 subscribers on YouTube and over 1.6 million followers on Instagram.
 
That large of a following also makes Miquela highly marketable, which, after all, is her reason for existence.  Although, a computer generated influencer (CGI) can’t really use brands, she showcases ones such as Coach, Balenciaga, Ouai, and Proenza Schouler.  The promotional potential of Miquela and her fellow avatars (e.g., Blawko) certainly is real, as further evidenced by Brud recently raising $6 million in venture capital and Time placing Miquela among its “25 Most Influential People on the Internet” along with the likes of Kayne West and Kylie Jenner.
 
But, potentially big fan-bases are not the only attractive attributes of virtual influencers compared to real ones.  Digital beings don’t need to be paid.  Contrast those zeros to the seven-year $75 million sneaker endorsement deal basketball phenom Zion Williamson just signed with Nike.
 
Virtual influencers also can be precisely controlled to do and say exactly what advertisers desire, ‘on- and off-camera.’  Contrast that certainty with the risk inherent with real human endorsers, such as Tiger Woods, whose 2009 sex scandal caused two of his biggest sponsors, Gatorade and AT&T, to bail.
 
There seems to be real value in using unreal influencers, but as this blog always suggests, just because marketers can, doesn’t necessarily mean that they should.  So, the question:  Is it ethical for organizations to employ virtual influencers?
 
The thought of “employment” raises an immediate concern:  Will digital endorsers put real ones out of work?  It seems that some displacement is inevitable:  If Miquela is promoting Coach, the brand probably doesn’t need as many flesh-and-blood models or actors.
 
On the other hand, there are also now new jobs.  Someone needs to create and manage the digital personas.  So, an argument about unemployment can be countered by the age-old logic that people always need to adapt their job skills in order to keep pace with new technology and not be displaced by it:  To stay employed, people who dug holes with shovels needed to learn to drive backhoes and bulldozers. 
 
For what it’s worth, my prediction is that virtual influencers will proliferate to a point of saturation, after which the pendulum will swing back in the opposite direction, at least somewhat, as consumers reaffirm their appreciation for real people’s authenticity, genuineness, and unmanipulated humanity.
 
For me, the biggest ethical concern surrounding virtual influencers is the potential for deception.  As consumers, it’s critical that we recognize when someone is sharing an objective, unbiased recommendation versus one with some corporate connection.  There’s not necessarily anything wrong with paid endorsement, but consumers need to know when they’re experiencing it so they can raise their perceptual defenses and properly interpret the message.
 
For example, as a college professor, I often speak with prospective students and their families about their college choice.  They expect me to describe my school in a positive light and understand that I can’t be completely objective.  However, if in some social setting I happened to have a conversation with a family, without revealing my association, they might gain an unreasonably favorable impression of my school because they didn’t know that the institution I described was my employer. 
 
For virtual influencers, the potential for deception is different in one way but very similar in another.  For instance, when Prada used Miquela to promote its 2018 collection, people probably recognized the ads as corporate messages, not an average consumer’s unbiased recommendation.  However, to the extent that viewers didn’t realize Miquela was 100% digital, they may have been deceived.
 
The reason is that there’s a reasonable expectation that endorsers, whether paid or unpaid, either use the product they’re promoting or have some special knowledge about it that makes them reliable sources of information.  For example, I earned my bachelor’s degree from Messiah College and have taught there for nearly 20 years, which should give me some credibility as an endorser.  It’s impossible, however, for a virtual influencer to use or otherwise experience the brands they advocate because virtual influencers are not real.
 
When we see a human endorser in an ad, we assume they’re getting paid, which lessens their perceived objectivity.  Still, even if they’re like Zion Williamson and receiving a boatload of money for their support, it’s reasonable to think that they wouldn’t risk their reputation with a brand in which they didn’t believe.  People who can command significant sponsorship dollars usually have various endorsement options and can choose reputable ones.
 
Although Miquela can be pictured wearing or holding Prada products, she can never experience them because she isn’t human.  But, if people believe she is real, they can incorrectly assume that her actual interaction with the brand allows her to make sound judgments about it.  In short, consumers can be deceived.
 
Some may be thinking, “But, virtual endorsers really aren’t new, so hasn’t the potential for deception existed for decades?”
 
It’s true that companies have been using various types of animated endorsers for a long time, e.g., the Pillsbury Dough Boy, Tony the Tiger, the Energizer Bunny.  In the 1950s, Pepsodent created Susy Q, an original cartoon character, to promote its toothpaste.  More recently, some companies are offering to create unique animated spokespeople that even small businesses can afford.
 
The difference is the technology used to create Miquela and similar virtual influencers is much more sophisticated, making it increasingly difficult for consumers to distinguish who’s human and who’s not.  Therein, again, lies the problem. 
 
When we can tell that animated brand ambassadors aren’t real, we’re under no illusion that they use the products.  However, when we believe a spokesperson is human, we assume that they use the product or have some special knowledge about it, which may give us unwarranted confidence in their recommendation. 
 
It’s fine for organizations to use animated beings to promote their products, but they should be careful not to mislead consumers by making the influencers so real that they seem human when they’re not.  That kind of deception may sell products but it is really “Single-Minded Marketing.”


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Is it Too Risky for Kids to Rideshare Alone?

7/12/2019

1 Comment

 
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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Among a parent’s worst nightmares is this:  Your child climbs into a car alone with a stranger.  Just the thought of that scenario strikes fear into the heart of any mother or father.  So, why would a company create a business model based on that situation?
                                                                                                  
A few months ago, ride-sharing icons Uber and Lyft grabbed headlines and goodwill by saying that they do not allow those under age 18 to use their services.  Like others who heard the news, I applauded it: “That’s great—two for-profit firms forgoing income in order to protect young people.”
 
At the same time, the news made me wonder if there are other ride-sharing companies that don’t hold the same convictions and, instead, are willing to put kids into cars with whomever might be driving them.  That’s when I came across a company that doesn’t just transport minors occasionally, it specializes in chauffeuring them.
 
In 2014, three southern California moms who were struggling “to get their busy kids to and from school and all their activities,” founded HopSkipDrive, a transportation service specifically designed for those age six and up.  Just five years later, the firm has a staff of 50+ people, a presence in large metropolitan markets like Los Angeles and Washington D.C., and contracts with over 150 school districts.
 
How did a small, unconventional startup not only grow so quickly but even more importantly, persuade so many parents and others to trust the company with their most “precious cargo”? HopSkipDrive has achieved this rapid success through a combination of clear mission-focus and strict attention to detail.
 
Yes, busy parents who need to get their children to afterschool practices, lessons, etc., want to be sure that their kids arrive on-time, but their main concern, as mentioned above, is safety.  If someone else is driving, who is the person who will be alone with their child in a car?  Of course, the individual should be a skilled driver, but more importantly, can he/she be trusted?
 
Unfortunately, even with ridesharing companies that vet their drivers, you can’t always be sure ‘who you’re getting.’  Many of us have heard of rare but horrific incidents in which unstable drivers have harassed, raped, and even killed their passengers.
 
Nothing bad has happened to me while ridesharing, but my own recent  experience caused me to question driver-screening.  Our family had been staying at a resort for a few days and needed to get to a certain rental car center in order to continue our vacation.  Using the Uber app, I requested a ride and watched on my phone for several minutes as the driver made his way toward the resort.  Then, when he was only a minute away, he dropped the ride! 
 
I can’t be sure what happened, but here’s my guess:  A minute from where I was waiting, the resort had a gate where those entering the grounds via private vehicle needed to stop and show identification, i.e., a driver’s license.  It may not be the reason he bailed at the last moment, but it’s sobering to think that the person who was going to give me a ride either didn’t have a valid driver’s license or wasn’t responsible enough to bring it with him.
 
It’s one thing to imagine a questionable driver chauffeuring an adult, it’s another thing to think of a young child confined in that vehicle.  How could any company eliminate the risk inherent in such a situation?
 
When I first heard of HopSkipDrive, I was skeptical, not about demand for the service, but about the firm’s ability to ensure children’s safety in such an offering.  As a working dad who helped drive his busy kids for years to/from school and practices and who commiserated with parents in similar predicaments, I knew there was a need.  I wasn’t sure, though, how a company might manage the business model in a way that would give parents the confidence to say, “I’ll let my daughter or son ride with you.”
 
In light of such significant reservations, the main way HopSkipDrive maintains the trust of thousands of parents and schools each day is by painstakingly picking its drivers.  In fact, the company uses an exhaustive 15-point certification process that requires the following of each applicant:
  1. Worked with children and has at least 5 years of caregiving experience
  2. No criminal record
  3. Fingerprinted
  4. No sex offender record
  5. Valid driver’s license
  6. Good driving record
  7. Age 23 or older
  8. Owns or leases a vehicle not more than 10 years old seating 4-7 passengers
  9. Passes a 19-point vehicle inspection by a certified mechanic
  10. In-person meeting
  11. Completes in-person driver orientation
  12. Has personal auto insurance coverage
  13. Adopts the HopSkipRules
  14. Adopts our zero tolerance policy for smoking, drugs, and alcohol while driving
  15. Adopts the zero tolerance policy for illegal mobile device usage while a rider is in the car

Because of the meticulous selection process and the exceptionally kind and positive rapport those hired are expected to have with their passengers, HopSkipDrive doesn’t just call its personnel “drivers” but “CareDrivers.”
 
Special care and concern for safety begins as soon as CareDrivers arrive for a pickup.  They wear bright orange HopSkipDrive t-shirts and verify their identity by confirming their passenger’s code word and birthday.  Customers also can review CareDrivers’ profiles before pickup in order to know “who they are, what they look like, and the kind of car they drive.”
 
Throughout the ride, the company continues to leverage technology in order to ensure security.  Dedicated HopSkipDrive staff members monitor each ride remotely through its duration, and parents can do the same.  They also can receive alerts when their child has been picked up and dropped off.
 
As good as all of these systems are for onboarding employees and overseeing operations, they probably wouldn’t be effective if the company didn’t do something else very well:  Embrace a compelling mission.
 
HopSkipDrive doesn’t just see itself as a provider of transportation service, i.e., getting kids from point A to point B, or even as an alleviator of parental stress, which it certainly does.  Instead, this front-and-center statement on the company’s homepage communicates its mission:  “Success starts by showing up.  We help get them there.”
 
HopSkipDrive takes kids to school, piano lessons, basketball practice, and countless other developmental activities that are vital for children’s intellectual, social, and emotional growth.  Those formative in-person experiences help them thrive now and contribute to their success in life for years to come.  However, children can’t enjoy those activities unless someone ‘gets them there.’
 
In an interview with Yahoo Finance, HopSkipDrive’s CEO Joanna McFarland affirms that mission, saying “Oftentimes mobility is a huge barrier simply to access to education, and that’s something we’re helping to solve.”
 
It’s also confirming that employees appear to embrace the same purpose, such as one CareDriver who says “I feel really empowered being part of the greater good, getting kids safely where they need to go.”
 
As you might expect from the exacting service standards described above, “the greater good” does come at a higher cost.  McFarland acknowledges that HopSkipDrive is a “premium service” that has “much different economics” than those of Uber and Lyft.  Rides reportedly start at about $20.
 
However, the rates are comparable to what one would pay a caregiver.  McFarland suggests the same in saying, “We think about [HopSkipDrive] much more as a substitute to a babysitter that drives than a comparison to an Uber and Lyft.”
 
The bottom-line is whether a substantial number of consumers (families and schools) find value in HopSkipDrive’s services.  Apparently they do, as evidenced by the facts that the company is in seven markets and growing rapidly, has served over 6,000 schools, and has transported more than 650,000 children.
 
The most important validation, however, comes directly from those children—the actual riders—such as one young passenger who says, “They know my passcode, they talk to me, they make me feel very welcome.  I’m never like, nervous to get in.  In fact, I usually look forward to it because it’s a lot of fun.”  Her experience is the best evidence that HopSkipDrive’s ridesharing for kids is “Mindful Marketing.” 


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