Of course, foursquare’s not the only game in town.

While the world figures out what to make of Facebook Places, Gowalla continues to be the best LBS alternative to foursquare. While both services have much in common, one dramatic difference is Gowalla’s disinterest in rewarding users for checking-in repeatedly at a single venue (i.e. foursquare’s “mayors”). Instead, Gowalla tends to reward users for checking-in at a variety of venues. In some cases, these are part of coordinated “trips” that are produced by Gowalla users and brand partners. (National Geographic‘s robust collection of trips is a particularly good example of brand-building via LBS.) For any brand looking to connect on a regional level, this Gowalla feature allows you to creating a walking tour of, say, bars in a given city with Negra Modelo on tap.

A new addition called Highlights promises to add another layer of personalization to this content, with users being able to label spots as the best nighttime views, best guilty pleasure, or best kept secret (I think I’ve found a flaw in that last one). Assuming that Gowalla has plans to integrate marketers into these Highlights, there’s plenty of room for partnerships – I’m sure a number of bridal products would love to get a piece of the “Hitched” highlights.

But, Gowalla perks work at individual locations as well. Gowalla users often receive virtual items for checking-in at certain locations (which can subsequently be dropped or swapped at other locations). For instance, you might receive a metal robot when you check-in at a toy store, or you might receive free tickets to an NBA game by checking-in to sportsbars and basketball courts. Huh, wha? Yes, the New Jersey Nets hid 250 pairs of virtual (but redeemable) tickets at various Gowalla locations in the area for their last game of the season! Our “athletically challenged” colleagues here at Upshot might be more interested in a similar giveaway from Adobe, in which virtual items redeemable for a dozen free copies of Creative Suite 5 were distributed across various Gowalla spots nationwide. (A summertime campaign from Eye-Fi spruced up this model by including a random sweepstakes for anyone checking-in at Apple Stores.)

The aforementioned Nets promotion brought up a particularly compelling way for brands to deal with unused inventory (a problem that the Nets had ample opportunities to consider – heyyo!). The same article that described the Nets campaign suggested that hotels could offer unsold rooms in a similar fashion, in the hopes that the winners would make additional purchases via room service or on-site bars and restaurants. (The same mentality could be applied to movie theaters and amusement parks.) Of course, the other benefit is that a LBS-user is almost certainly going to be an active participant in social media, so they are more likely to start conversations about your brand than a traditional contest winner. Why not focus your rewards on someone who’s likely to be a vocal brand advocate?

Before moving on to the next topic, we should add that, um, we’re still not done here. In fact, our coverage of marketers on foursquare and Gowalla is still overlooking brands who are doing great work on other LBSs. Before you get completely exasperated, yes, the slew of services is a problem, and yes, we’ll be addressing this at a later time. But no, this won’t undermine the impending “Year of Location” – in fact, it should help. That’s a whole ‘nother post, though. In the meantime, we’d like to call your attention to Red Bull’s work with Whrrl, simply because it’s a stellar example of a Niche Network in action. When people join the Red Bull Society on Whrrl, they’re privy to exclusive deals (including drink discounts at select bars and clubs) and access to Red Bull events (such as tickets to the Red Bull Air Race in NYC). When our previous post asked “what’s the point of checking-in?” this is about as good an answer as you can give: being part of an exclusive community with tangible benefits, organized around a set of common [and local] interests. We hope other brands continue to do the same. But if they don’t, you can always garner attention with wacky offers like free Virgin America airline tickets for checking-in to taco trucks on Loopt. Wait, wha?

Y’know, the one we called out back in March. But no worries, we’re glad you’re all coming around. In fact, we’re going to spend the next couple of posts sorting out the marketing implications these recent announcements, because we’re just that nice.

The reigning mayor of the location-based space continues to be foursquare, which recently hit its 3 millionth user. foursquare has maintained their lead over other location-based players largely because of their willingness to partner with broad range of marketers, who often end up promoting the service in their own ad campaigns (such as VH1′s foursquare commercial). To get us in the mood for tackling this location-mania, left break down a few foursquare marketing applications from the past few months.

Skeptics of location-based services always start with the same question: what’s the point of checking-in? Of course, the answer depends on a number of things, including whether the venue is offering a particularly compelling incentive. For retailers, rewarding check-ins and mayorships are clearly the low hanging fruit for LBS involvement. Radio Shack started providing 10% off of purchases for anyone who checks-in, and 20% off for each store’s mayor. In return, the chain essentially gets free advertising in the form of a peer recommendation. Likewise, Chili’s restaurants figured out that free chips & salsa are a small price to pay for getting their guests to broadcast each visit to their social networks. But, Kona Grill took this one step further with their Swarm Parties, playing off the badge that foursquare users earn when they check-in to events with 50 or more attendees. Kona encouraged these swarms to hit their restaurants by offering special items during the gatherings, and of course, provided them free of charge for the current foursquare mayor. Again, the free advertising angle is a pretty sweet deal for the restaurant: if they get 50+ diners broadcasting their attendance to their social networks at the same time, the potential reach is certainly worth the price of giving away a few meals (not to mention getting 50+ customers in the door!).

The Six Flags theme parks are also pretty darn good at getting people to check-in, thanks to a wide variety of promotions and incentives. For instance, whoever is still holding the mayorship of each park on September 7th will win a season pass (looks like you’d better take work off for the next week!), while anyone who checks in 10+ times will get a virtual badge and an entry in a sweepstakes for a 2011 front-of-each-line pass. We like the fact that Six Flags has staggered these promotions to appeal to different levels of foursquare users. After all, only one person gets to be the mayor, but anyone with a season pass has a shot at 10 check-ins. Six Flags also uses the often-ignored “tips” section for each park to communicate additional deals (e.g. bring a Coke can for 2-for-1 weekday admission) and tips to improve the visitor’s experience (e.g. where to find bathrooms with short lines).

Speaking of fun stuff on foursquare, we’re a bit perplexed why more brands haven’t used foursquare to provide a digital twist on the ol’ scavenger hunt. One of the few examples we’ve seen was Jimmy Choo using the service to give away shoes as part of an entertaining treasure hunt. Jimmy Choo shoes would “check in” at various foursquare locations, and anyone following the brand could hustle down to the spot to try to locate the pair first. Finders, keepers!

Checking-in at live events is nothing new – or at least, it isn’t new for readers ’round here. Heck, if you can get a variety of badges for checking-in at the Today show’s live concerts, shouldn’t every event offer this simple form of recognition? Why yes, yes they should. But, we like the fact that the Today show is introducing the concept of location-based check-ins to a different demographic than, say, the folks attending the Banksy movie. For these services to continue to grow, an introduction via trusted names like Today will make the transition much smoother for new users.

Phew. Consider yourself checked-in to foursquare. Of course, we’ve overlooked plenty of examples, too. If you’ve seen some fancy foursquare integrations that aren’t listed here, please share them in the comments below!

Delighting consumers. Hidden surprises. We’ve mentioned them once or twenty times here on the Awesome Blog. But, underlying this trend was the idea that brands touting “big happiness” would struggle to deliver upon that promise in a period of great uncertainty and skepticism. When we introduced the trend, we felt that brands would best succeed by delivering the kind of small happiness that could be realistically achieved on a consistent basis. Y’know, cheering up consumers at unexpected moments throughout their day.

Well, Kraft’s interactive window ads (shown above) certainly bring a smile to our faces. Partnering with Upshot Inform alumnus Monster Media, these displays featured a Macaroni & Cheese noodle that would bend in accordance with the smiles of folks passing by. Big grins = big bends, no grins = neutral noodle (and nobody wants that!). Kraft even integrated some gaming mechanics by tallying the total number of smiles generated across the campaign.

But, Kraft’s not the only brand committed to getting their consumers to smile. Across the pond, another CPG company developed a vending machine that provided pedestrians with free ice cream if they smiled big enough. This execution offers a particularly clever twist on traditional sampling by delighting consumers (with free ice cream) in the process. The only thing better than getting your sample into the consumer’s hand is cheering them up in the process!

As part of Pacifico’s sponsorship of the US Open of Surfing, we rolled out a program via QR code for the event’s attendees. Better yet, we made sure we were delivering compelling content according to the recommendations from our QR code Smartshot webinar, in which we advised that QR codes should deliver convenience, entertainment, or exclusivity.

Fortunately, the Pacifico code nails all three at once.

On the convenience side, the code offers a Pacifico tap finder for USOS attendees, enabling them to map out their route to the nearest bars (which, presumably, will also quickly lead to entertainment). Speaking of entertainment, the mobile site also offers a calendar of events surrounding the USOS (viewable to the right), so that attendees can catch concerts and parties after the day’s work is done (and, yes, this doubles as convenience as well). Finally, the mobile site offers exclusivity by also directing users to Pacifico events during the USOS, providing access and benefits that are unavailable to people who haven’t scanned the codes.

This campaign shows that checking off the boxes for convenient, entertaining, and exclusive content doesn’t have to be so complicated. In fact, it brings to life our mantra here at Upshot: simple ideas, brilliantly activated. Good marketing is just that easy.

If you haven’t already, please don’t forget to vote for our SXSW 2011 panel, accessible here. You’ll need to create an account to vote, but we promise that it takes less than a minute. Voting closes Friday, August 27th, and we appreciate every bit of help we can get!

Stickybits is a smartphone application that allows users to attach content to pre-existing barcodes, and access content that other people have left on the same code. That “pre-existing” part is the key; Stickybits turns any product with a UPC (so, uh, basically any product) into a social media channel. The brand often delivers the first “bit” of content, much like other barcode applications. For instance, a clever campaign from Food52 partnered with brands like Domino’s sugar and Organic Valley Sour Cream to provide recipes when users scanned the UPC on each product’s package. However, consumers can then respond by attaching their own mp3s, videos, text, pdfs, and what-have-you to the UPC for anyone to see. Imagine the possibilities for abuse!

And that‘s exactly why we’ve been hesitant to jump on board. In the era of Consumer Controlled Conversations, we all know that marketers have to engage in open, honest dialogs with consumers in public forums. But monitoring Twitter conversations is one thing; having consumers tearing your brand apart on a forum that’s attached to your physical product can, understandably, be a tough pill for clients to swallow. Sure, consumers can have these conversations with or without your involvement, but if you’re not calling attention to your UPC, most consumers probably aren’t even going to think to scan the code in the first place.

Which brings us to problem number two with Stickybits. As we mentioned in the QR code Smartshont webinar, one benefit of a QR code is that consumers always know that there’s some content on the other end of the code – it’s essentially a sign that there’s something more to see. With Stickybits, your campaign is relying on a UPC that’s generally ignored unless you explicitly call attention to it via packaging, in-store media, or some other touchpoint. Are consumers really going to go around scanning every UPC in the supermarket looking for content? Of course not, which means unprompted conversations will almost certainly come from extreme fans and extreme haters. By no means is that a deal-killer for Stickybits, but it’s worth considering.

For instance, it makes perfect sense for Campbell’s new campaign to utilize the Stickybits platform, because the campaign itself is explicitly about the redesigned labels for their soup cans. (Campbell’s is dangling a $500 sweepstakes to encourage participation.) This is a clear example of connecting the medium to the message (and the product, for that matter), so the item being discussed doubles as the platform for the discussion. Also, by giving consumers a specific topic to discuss, it’s likely that Campbell’s has pre-emptively reigned in some of the more “colorful” anonymous comments that are to be expected in the age of Consumer Controlled Conversations.

Coke’s application of Stickybits uses similar logic. Part of their mysterious campaign surrounding the brand’s secret recipe includes “unlocking the bottle,” communicating to consumers that there might be a reason to scan the codes on the product. (P.S. There’s a fun little trick hidden in that linked Coke video – let us know if you haven’t found it yet.)

So, where does this leave us? Frankly, on the fence. It’s a compelling platform, as evidenced by the three campaigns above. There are certainly good applications in the right situation, and the Food52 example offers a particularly innovative partnership strategy. However, for now, there are also considerable risks and shortcomings, many of which can be avoided using other barcode and social media solutions. We’ll certainly stick around and see how the situation develops.

If you haven’t already, please don’t forget to vote for our SXSW 2011 panel, accessible here. You’ll need to create an account to vote, but we promise that it takes less than a minute. Voting closes Friday, August 27th, and we appreciate every bit of help we can get!

As always, a PDF version is available here, which we encourage you to share with clients and colleagues. But, if you’d prefer the straight text, continue reading below.

Code Read

Brace Yourself for the Barcode Barrage

Well, what do we have here? Is that a QR code campaign delivering exclusive content for FOX shows like Glee and Fringe? And do I see a Campbell’s sweepstakes where consumers enter by scanning their soup can UPCs? While, over here, I could’ve sworn I caught a Kelley Blue Book window sticker equipped with QR codes, allowing car salespeople to keep the same sticker in the window even when the price fluctuates. With everyone from beer brands to magazines to sports teams loading up these little squares with data, it looks like we’ve got ourselves a full blown barcode party on our hands, to which we say…

Well it’s about time you all showed up! See, we at Upshot have been hanging around the QR code punchbowl for years, checking our watches and nibbling on hors d’oeuvres while wondering what’s taking everyone so long to get here. (We’ve even used the codes in our own agency campaigns.) But, that’s given us plenty of time to get acquainted with the breadth of barcode applications, understanding what works and what doesn’t. We already went ahead and qrushed the topic of QR codes in a recent 15-minute Smartshot webinar (accessible by scanning the QR code above), so let’s head in to the party! Look for the balloons out front.

(Of course, the best way to get into this shindig is to try scanning some codes yourself. If you don’t have a barcode reader for your smartphone, shoot The Source a message and we’ll point you to one that you can download for free.)

While we prefer the flexibility and broad compatibility of QR codes, we’re admittedly using them as a proxy for all kinds of barcode marketing applications. It really doesn’t matter whether you implement a smartphone app that reads traditional UPCs or a code like JagTag that doesn’t require a reader. What’s important here is that barcodes should be driving consumers to compelling, valuable information when scanned, regardless of the format. Ultimately, these codes are just an efficient way to connect consumers to a wide range of content on the mobile web, whether it’s a link to the Double Rainbow YouTube video, the Double Rainbow remix mp3, a coupon for the Double Rainbow t-shirt, a calendar link to Double Rainbow viewing parties… you name it. The codes are not campaigns on their own. The real consumer interaction comes after that code is scanned and engaging content is delivered, much like the true measure of a party’s greatness isn’t what’s on the invitation, but how early the karaoke machine gets broken out. For instance, the QR code to the right will take you to an awesome art installation, in which portraits of classic movie stars are made out of a series of barcodes. When those codes are scanned, they play various video clips from their respective repertoires. Now that’s one heck of a barcode blowout!  (Hint: linking your QR code to your company’s bland homepage probably makes for a crappy party.)

These data-laden codes are ideal for any products where the consumer experience can be enhanced by accompanying information and education. For instance, there’s a lot to talk about when it comes to wine: food pairings, terroir, blends, vintages, and how to properly mock anyone garish enough to order a California Merlot in public. But, even for oenophiles, that’s a lot of stuff to put on the outside of a bottle. We’ve seen some brands try to get around this with bottle neckers, in-store media, packaging, and more, but none of these options really allow for the full story to be told. Compare that to the smartphone apps that Constellation Wines has developed for its brands, which include barcode-scanning capabilities. When consumers scan the UPC on the bottle, they’re linked to everything from reviews to tasting notes to streaming videos about the wineries. It helps that these apps also build personalized profiles for the consumer, since it gets a little tricky to remember your favorites halfway through a tasting session. Just ask Edina and Patsy (they’re waiting for you behind the QR code above).

Like the Best Buy example we covered in our Smartshot webinar, Constellation bakes the barcode readers right into their branded smartphone apps (along with other features). We think this is particularly crafty, and not just because it circumvents the problem of whether consumers have already downloaded barcode readers to their phones. When users scan the codes using the branded app, that marketer can exert more control over where that user eventually ends up. In Best Buy’s case, the retailer can link to movie and video game trailers, coupons, installation instructions, their Twelpforce staff, and more, without worrying that the barcode will take their shoppers to an online competitor. And this approach isn’t just beneficial for retailers; imagine how much more control a brand could exert over its shopper marketing programs via a similar technique.

In the end, it really doesn’t matter which code format your brand pursues. What’s important is recognizing the value of augmenting consumers’ real-world experiences with rich, immersive, online content. It’s part of the Online-Offline Convergence that is changing our consumers’ everyday experiences, and which happens to be another party that we’ve been crashing for a long, long time. Now that you know the code for the door, we do hope you’ll join us. We even left you a special message hidden – where else? – in the QR code to the right.

the hotspot for haute thought is the pot at upshot

we’re all hopped up on code-ing at theawesomeblog.net

Part of this success was attributable to steadily-improving content, but we also called attention to the rise of live streaming video sites, especially ustream.tv. Ustream not only offers an enormous range of videos streaming from sports and music events, but the site also surrounds these videos with a “social stream” chat box that ties these conversations to Twitter, Facebook, and other social media sites. So, if Ustream can get a big star – like, say, NBA all-star Dwight Howard – to do a live streaming video, not only can viewers chat with Howard in real-time, but all of these conversations are pushed out to social networks, generating an explosion of word-of-mouth activity.

Of course, the Howard example was no accident. Gatorade has obviously recognized the power of live streaming video, and now offers all sorts of live content via their Ustream channel. As covered in a recent Forbes report, Gatorade used their athletic connections to offer truly compelling, exclusive content, such as live videos of athletes training in the Gatorade Performance Lab. Sure, there’s plenty of focus on how the product enhances the workout, but the fact that fans can have an honest interaction with the athletes makes the entire experience feel less like an ad and more like a peek behind the curtain.

Interestingly, though, the Forbes article finds that the big stars aren’t necessarily what’s bringing Gatorade the big ratings. In fact, Gatorade often gets higher traffic for nutrition and fitness Q&As with scientists from their Gatorade Sports Science Institute, as well as the brand’s annual awards lunch for high school athletes. These surprising results are probably the product of a few things done right. In the former case, providing truly useful, tailored, expert information offers consumers relevant information that might otherwise be difficult to find in the clutter of the web. On the other hand, the high school athletes luncheon touches on a few points at once: supporting youth sports, connecting with local communities (a.k.a. being a Hometown’s Hero), and allowing geographically-disparate viewers to experience an event as a group.

It’s this latter point which makes sites like Ustream so compelling for sports and music events, and is also the reason we shouldn’t stop at these two categories. For any event marketing execution, why wouldn’t you arm your brand ambassadors with a couple of video cameras and allow folks from all over to feel a connection to your event? Doing so provides you with all the benefits of targeted regional marketing and amplifies your campaign to your fans across the globe. Sure seems like a no-brainer to us.

Well, almost on cue, Pepsi took a giant step towards redemption. Under the umbrella of their Refresh project, Pepsi earmarked $1.3 million to specifically address the Gulf recovery project, and are currently considering over 250 ideas. This approach is pitch perfect, with the smart folks at PSFK summing it up best:

“Pepsi’s approach feels honest and sincere – it doesn’t try to hype Pepsi’s role in the cleanup, but rather empowers consumers to play that role – the brand simply pledges financial backing to execute the best ideas. Additionally, it’s not overly sentimental (no images of dead birds, or burning turtles) – just an actionable, empowered attitude to help fix a problem.”

That’s exactly right, and brands looking to score an authentic CSR victory should take note. But, in the context of our earlier discussion about the Reputation Economy, there’s another lesson worth noting. We mentioned that reputation is now a long-term process that requires continuous attention, and if done properly, will resonate with consumers on a deep emotional level (even in spite of an occasional misstep). Sure, the Pepsi nutritional blog was a dumb move, but rather than fighting the blog’s critics, Pepsi acknowledged their mistake, took down the ill-advised project, and doubled-down on a cause program that will make a legitimate, impactful difference in the lives of an entire region’s population. Put another way, the way they undid their bad was to do even more good. And that, folks, is why it’s called the Reputation Economy. Your brand is the sum of a mental calculation, a tradeoff between the trust you’ve inspired in your consumers (both directly and indirectly) and the impacts you’re making on the world. Authentic, effective good deeds will go a long way towards tipping the scales in your favor.

Pepsi undoubtedly spent a lot of time considering this tradeoff before delving into their CSR campaign, but one thing they probably didn’t anticipate was that the perception of the Refresh campaign would be shaped by the company’s tangential actions elsewhere. Like, for instance, a Pepsi-sponsored nutrition blog with some questionable assertions.

Welcome to the Reputation Economy, where instantly-accessible information makes it infinitely easier for consumers to connect the dots between a brand’s disparate actions. While a massive company like Pepsi probably isn’t making any connection between the Refresh project the nutrition blog, the consumer experiences these efforts as a composite branded experience, and makes their judgments accordingly.

And Pepsi’s not alone. A recent article from Forbes touted a list of the most imaginative CSR campaigns, but many of brands lauded within have encountered some backlash for their own tangentially-related missteps. Dove’s Campaign for Real Beauty is one of the most heralded CSR campaigns in recent memory, except by the critics who noted that Dove’s sister company Axe was doing just as much to undermine women’s self-images. Even the comment section on the Forbes article displays these sentiments, such as one poster who questioned how Levi’s could justify a campaign focused on the struggling American worker while producing their jeans in overseas factories.

So, is the lesson here that CSR campaigns aren’t worth the trouble? We wouldn’t go that far. The “economy” in Reputation Economy isn’t just jargon; rather, it signals that brand-building via CSR is a long-term process that requires continuous attention, and is bound to have its ups and downs. Still we believe that there’s a worthwhile long-term payoff. If Pepsi, Dove, Levi’s, and other brands stick to their guns, they have the opportunity to connect with consumers on a deeply resonant emotional level that goes far beyond the utility of their products. If done properly, these gaffes will ultimately be considered missteps, rather than fundamental flaws that derail their CSR efforts. Still, any company that chooses to invest in CSR campaigns must consider this high-risk/high-reward tradeoff, and be extra careful in ensuring that their company’s broader actions do not contradict or undermine their more noble efforts.

But, there’s no reason to think these principles are restricted to the offline world. While touch, smell, and taste are (hopefully) inaccessible online, clever digital marketers can still take sight and sound to their indulgent extremes. And, few know how to “indulge the senses” quite as effectively as burlesque star Dita von Teese. So, placing her in an interactive, choose-your-own-adventure-style mansion is a sure-fire combination for an immersive digital experience.

The only thing missing in this equation is, of course… err, sparkling water? Yes, welcome to the mansion at Perrier by Dita. (“Not safe for work” might be a little strong, but considering there are interactive burlesque routines, perhaps “not advisable for work” is more appropriate.)

While the site seems like a curious fit for a sparkling water brand, that doesn’t take away from the excellent execution overall. Not only is the first-person experience displayed in a compelling manner, but the interactive elements (such as a teasing dice game with Dita and a chance to “photograph” her in the dark) ensure that the experience is not a passive one for the viewer. This level of indulgent interactivity (meaning the user experience, not the stripteasing starlet) should be the benchmark for online experiences, since they are now competing against everything from pristine iPad apps to augmented reality mobile experiences. Is your website offering a compelling-enough experience to hang with these alternatives?