Liz Wiltsie

Potential Square’d

One of my favorite spots in NYC is West Broadway on a Saturday afternoon in the spring. The street vendors there have the best stuff. Everything from clothing to jewelry to paintings. There are many days I’ve wanted to buy something, only to realize I didn’t have enough cash. If I’m lucky, I have $20 on me at a time. For some reason, ATMs on West Broadway between Grand and Houston are a bit scarce. So, I left without buying. That’s probably better for me, but the merchant lost a sale.

As a merchant, it’s important to be able to take payment in as many forms as possible. Making it easier to buy makes more money. It really is a simple concept. This is where Square comes in. Square is a small device and software that allows merchants and individuals to accept credit cards using an iPhone/iPod. The company was founded by Twitter’s Jack Dorsey. For details and commentary see NPR (ed: just added, great interview), CNBC, Technology Review, New York Times, Tech Crunch, Gigaom Read Write Web, and even The Onion.

There is some discussion about Square being redundant when a merchant already has a merchant account. As someone who’s worked in a retail environment, having something like Square as a backup to a traditional system could keep sales running when the internet goes down. Obviously, the phone needs to be running on the cell network and not WiFi.

Another discussion centers around security. Credit card security is a huge concern. Individuals can have their credit compromised for years after a loss. But it is a concern for small businesses as well. When a charge is disputed the individual is credited (almost immediately) and that money comes from the merchant, not the credit card company. So now, the consumer has their money back but the business is without merchandise and cash. It is in a business’s best interest to be vigilant.

Square already has several features that increase security. The reader translates the card data into an audio signal, uses the software to send the data to Square servers, requires a signature, and has an optional picture. No data is stored on the device. Data is encrypted to and from Square servers. Requiring a signature allows merchants to confirm customer identity. I will not pretend that this is all that is necessary, but they are moving in the right direction.

Still another concern is the size of the market. Think for a minute about the number of craft/art fairs, festivals, street vendors, events, and independent contractors there are in this country doing business. Add to that the number of businesses that do occasional mobile business (like trade show participation) or would like a backup system. The market doesn’t seem so small anymore.

As Square moves forward, I would like to see how it handles POS and accounting integration. And I’d like to see how it deals with the rumored Apple POS and Intuit GoPayment.

What are your thoughts?

Product Placement vs. Product Integration

Last night on Twitter, Derek Kompare (@d_kompare) posed the question:

“Hey tweeps: is it still called “product placement” or do all the cool kids say “product integration”? Thanks.”

I responded by saying Product Placement stands out (often badly) and Product Integration is much more organic and subtle.  I also said I would look into more examples this morning.  So I’ve realized that I gave the idealistic definition of Product Integration.

Technically, Product Integration involves characters taking about a product within the show/film.  Check out these articles for thoughts and examples that way, NYTimes from 2006 and an example of Coke in American Idol.

All that being said, I would like to put out my definition of Product Integration.  A well done product integration helps a brand stick out in our minds and compels us to buy/use a product or service.  It is barely mentioned or shown, but its impact on the story is real.

My favorite example is the NetJets integration in the Liam Neeson film Taken.  The story revolves around Neeson’s character’s daughter (Kim) being taken from an apartment and Neeson’s whirlwind journey to get her back within 96 hours.  He goes to tell Kim’s mother and step-father that she’s been taken.  And the conversation continues as follows (not exact):

Step-Father: What can I do to help?

Dad: You have a NetJets membership.  Get me a plane to Paris.

The next scene is Neeson riding in a private plane listening to his daughter’s voice as she was taken.  The point of this scene is a father and his single minded quest.  But the underlying message is that he wouldn’t have gotten there in time without using this service.  There is never a logo, or even another mention.

I could argue that the entire film Fever Pitch is product integration.  It is 2 hours of Red Sox placement.  And that movie is one of my favorite romantic comedies.

Another example is music placement on popular shows like Grey’s Anatomy, Private Practice, or One Tree Hill.  The music becomes another character (per the music supervisor’s design).  At the end of each of these shows, it tells us that music by these artists is available on iTunes.  Grey’s and Private Practice also have music guides on their websites.  I have bought a fair amount of music because it was very artfully done.

In contrast, Product Placement is obvious, annoying, and a real turnoff.  Although articles point to the Coca-Cola cups on the judges’ table for American Idol as an example of product integration.  I see this as product placement at its worst.  I know Coca-Cola is a sponsor of American Idol, but it just makes me want to throw something.  There is no organic purpose for those labelled cups to be there.

So, do you agree with my differentiation?  Or do you think it should be something else?  What are your favorite examples?

Moleskine Knock-Off (Ecosystem Notebooks)

I am a giant book fan and I have far too many blank journals.  But when I walk into a store I rarely leave without a new one.  When I went to college in NYC in 2000 I found my first Moleskine notebooks.  At that point they weren’t always at Barnes and Noble so I paid more at the art supply stores or Kate’s Paperie.  The combination of a compelling story, ability to lay flat, and narrow ruled lines have kept me interested for years.  I have owned almost all of the styles of Moleskine (except the storyboard one).  Today I like the 3 pack ones because I can keep things divided in my bag and not carry more weight.

I’m mentioning all of this because while I was trying not to spend money at Barnes and Noble today I saw the Ecosystem line of notebooks.  I was struck by their similarity in style to the Moleskine line.  They have the same footprint sizes, elastic closures, and a back pocket.  According to an article in Publishers Weekly, the Ecosystem line was a response to the category growth of journals (fueled a lot by Moleskine).  I don’t blame Barnes and Noble for wanting a bigger piece of that market, and I commend them for deciding to go for it out of post-consumer products.  BN also has a relationship with Savannah College of Art and Design to bring students/alumni designs to a large market (see them here or go into your BN for a bigger selection).

I’m writing all of this because I am torn.  I love Moleskine, and will continue to love them.  There is a big part of me that despises the me-too-ness of this move by BN.  The other part of me says, the notebook isn’t bad and post-consumer is a good trend to support.  Right now, I will stick with my Moleskines.  What about you?