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Unilever's So-Called Crowdsourcing

Why This Marketing Prof Thinks the CPG Giant's Move Is a Cop-Out

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Brian Sheehan
Brian Sheehan
When is crowdsourcing not really crowdsourcing? When it is Unilever's Peperami.

Last week an article hit the advertising press that sent shivers down the collective spines of Madison Avenue. Unilever, one of the world's largest advertisers, fired its agency, Lowe, London, on the Peperami brand. Peperami is a popular snack in the U.K. roughly equivalent to a Slim Jim.

What made the decision doubly painful for Lowe was that it was fired not for doing a bad job, but for doing a good one. Matt Burgess, managing director at Unilever, said, "Lowe has done great work on the account over the years. They've created a strong creative vehicle that's extremely well defined and portable. But their work has created a problem for them, because it makes Peperami the obvious candidate for crowdsourcing."

Agencies get fired every day. What makes this case unique, however, is that the agency was not replaced by another agency; it was replaced by what Unilever claims to be a "crowdsourcing" solution.

Now this all sounds very leading edge in a digital, social-media sort of way. But let's dig a little deeper and ask ourselves if Unilever's approach is actually crowdsourcing or something very different.

Related Story:
Crowdsourcing Done Wrong: the Vegemite iSnack Naming Disaster
Exercise in Crowdsourcing Turns into PR Nightmare

First of all, what exactly is crowdsourcing? Perhaps the place to start is to ask what we mean by a "crowd," and more specifically, a digital crowd. The best place to look for that definition is in James Surowiecki's seminal 2004 book "The Wisdom of Crowds." It is safe to say that the term "crowdsourcing," which was coined in Wired magazine in 2006, owes its origins to Surowiecki.

Surowiecki tells us that a digital "wise crowd" must be diverse, so that lots of different opinions are represented. It must be decentralized so no single person can influence the outcome. It must be independent, so that "good" information can balance out "bad" information. Finally, it must be collaborative, so that it can result in "collective intelligence." Wikipedia, for example, is all of these things.

The last point about collective intelligence is critical. Crowdsourcing at its core is about mass collaboration. Unilever's move, on the other hand, is nothing of the sort. Unilever is looking for no collaboration here. What it is looking for is to get lots of high-quality creative ideas at a significantly lower price. End of story.

What it has created is nothing like crowdsourcing, but rather an ongoing contest to create new advertising executions at a vastly reduced price. Unilever is offering a bounty of $10,000 for the person who can develop the winning TV and print ideas. Unlike other famous brands that have sourced creative from consumers, for example Doritos for its Super Bowl ads, Unilever is specifically looking for professional ad people to put forward ideas. Advertising Age's story about the Peperami move, from a few weeks back, noted that professionals in creative businesses were specifically "who the pitch was marketed to."

The best entry will win. There will be no mass collaboration of the type Procter & Gamble uses when it taps InnoCentive.com to connect to a crowd of over 140,000 scientists and engineers worldwide to solve research and development dilemmas. Mr. Burgess admitted in the article that cost was a key factor, as well as the ability to get more ideas from more professional creatives.

Now don't get me wrong, I have no problem with Unilever's move. It may be a look into the future where professional ideas are more numerous and much cheaper, thanks to online outreach, fitting in nicely with the pronouncements of Ad Age's own Bob Garfield.

But please, Unilever, don't insult our intelligence by packaging it as a leading-edge mass-collaborative exercise, an exercise that truly represents a step forward toward creative collective intelligence.

ABOUT THE AUTHOR
Brian Sheehan spent 25 years at Saatchi & Saatchi, the last nine years as chairman-CEO of Team One Advertising in Los Angeles. In 2008, he became associate professor of advertising at Syracuse University.
29 Comments
Subscribe to comments on: Unilever's So-Called Crowdsourcing
  By Jayter | jackson hts, NY September 28, 2009 03:14:32 pm:
It depends what the rules are. If everyone who is participating is doing so with eyes wide open, then fine. I can't imagine though that this works over time. Over the long haul, if there is true partnership, sharing, cooperation and mutual respect, a real relationship would beat crowdsourcing by far. It takes a while to understand the true essence of a brand and its challenges.

On smaller stuff, I think crowdsourcing works, e.g., if you want a professionally designed logo, why pay tens of thousands if you can pay $250 at http://logotournament.com/
  By ccasey | Saco, ME September 28, 2009 04:36:15 pm:
And just like establishing a true partnership in advertising logo design is the same thing. Yes a blind squirrel on occasion can find a nut but logo design is not just drawing a pretty picture in a vacuum which all too often is the case. And ultimately, you get exactly what you pay for.

If we choose to totally devalue what we do we make it a generic commodity.
  By AHRL | CHICAGO, IL September 28, 2009 04:56:35 pm:
Don't worry, folks--the kid brand manager who thought this up will be moved into another slot on next rotation and those holding the responsibility for the brand will wonder what the hell he/she was thinking. That is what happens in such companies. It is always for the benefit of the marketing people, not the brand.
  By SARAH | DOBBS FERRY, NY September 28, 2009 05:59:50 pm:
What I don't quite get under this scenario is who produces the "winning" idea? All the IdeaBounty.com site enables is the exchange of the creative idea - nothing more. As any venture capitalist will tell you, good ideas are a dime a dozen - the only thing that matters is your ability to execute. I think the same holds true in the creative realm. Will the Unilever brand manager become creative producer? Or is that something that the folks behind IdeaBounty.com hope to get a piece of?

Either way, it seems like a pretty hairbrained experiment if you ask me. Certainly premature to fire the agency...
  By thomas | stonington, CT September 28, 2009 06:22:32 pm:
When you consider the brand demographics -- arguably comparable to Slim Jim consumers -- you might be looking at a lower common denominator for creative maturity for which a cost-cutting budget makes some Darwinian sense. Us Creatives run the gastronomic gamut from arugula to Skittles, but if you're trying to sell a processed pork product, well...

Snide comments aside, would you or I in this economy pass up a crack at $10K for a few hours developing a pitch? Oink!
  By Rodney33 | FRISCO, TX September 28, 2009 08:27:31 pm:
Here's a wake up call. animoto, a tool created by Google that helps businesses large and small create :30 spots to broadcast on social networks.

The producer provides video footage or pictures, text if desired, then chooses from the animoto library rights free music and also other stock footage if needed.

The system then custom builds a short video to it's own liking. If producer/user doesn't like outcome, they can resubmit and it will provide a different outcome.

All the more, if the user wants to edit it, they can get a premium membership with user-friendly editing tools.

Here's an example spot from the site for Chicago Pizza Cafe in Frisco, TX that was literally created in five minutes with images shot on a tiny video camera.

http://animoto.com/play/zNyJV4iQpfuNd06kxnoDCA

Note - I don't have an affiliation with Google or animoto, I'm sharing the link just for frame of reference.

It may not win a clio, but this is just the beginning for social media spots. We cover this topic and others in our upcoming white paper XL Trends Chapter 2 coming out this week.

Rodney Mason, CMO
www.moosylvania.com
  By nic.ray | London September 29, 2009 04:46:21 am:
Brian, I am not sure I agree with your definition of 'crowdsourcing'. According to Wikipedia (which you site as a good example of crowdsourcing), it is defined as, "crowdsourcing is a neologism for the act of taking tasks traditionally performed by an employee or contractor, and outsourcing it to an undefined, generally large group of people or community in the form of an open call." By this definition, Idea Bounty (and the Unilever brief) is absolutely an act of crowdsourcing.

I appreciate that this is all semantics; I am only making the point because you chose to question the use of the term 'crowdsourcing' to describe the IdeaBounty site. Ultimately, IdeaBounty is an open market place for ideas - a forum that connects the worldwide creative community with brands looking for new, fresh ideas. Whether this is defined as 'crowdsourcing' or otherwise is beside the point. The fact that Unilever has chosen to work with IdeaBounty is in my mind progressive, brave and cost savvy. These are tough times for any brand, so I think we should applaud any marketers who are prepared to shake things up and give their consumers the chance to engage and shape their brands.

In response to Sarah's comment regarding the production of the winning idea - Unilever are working with an outsourced production company called Smartworks to produce the winning executions – which is another progressive step forward. They have experienced creative directors who shepherd the process. Furthermore, IdeaBounty does allow the winning creative to continue working on the execution of the idea, should they have the relevant skills and experience.

Finally, shouldn't we all be excited at the opportunity to earn $10k for a single idea for one of the worlds leading brands? Many of the comments on this article strike me as old school ad folk shaking in their boots.

Nic Ray
www.IdeaBounty.com
  By Katrien | Cape Town, WE September 29, 2009 06:06:01 am:
Neither Idea Bounty nor Unilever have presented this move as one of "mass collaboration" - they've been quite frank about the process and the objective.

That there is a disagreement about the definition of crowdsourcing is hardly surprising given that it's a relatively new practice. Basing a critique on the definition you have chosen to adopt seems to me to be a way to get a new angle on the story.

I believe it's a brave move, but one which remains to be tested and people will certainly be watching to see the result. I'm definitely curious.
  By Miguel | Madrid September 29, 2009 08:28:37 am:
Somehow I am not as repulsed by this as I am by CrowdSpring, which asks creatives to deliver finished designs in the hopes of winning the (meager) prize/money. The end result is that a large number of freelance creatives end up working for free, not my definition of economic productivity. Not to mention, the quality of some or much of the work is dubious and the system itself is ripe for abuse (copied logos, etc.).

There is a nuance here though. It seems that ideabounty is disrupting the traditional agency business model by acting as the new creative intermediary. The website disintermediates agencies, creating a platform where companies can get multiple concepts straight from the creatives. The website in effect acts as the agency but can deliver more ideas for a lot less. And the price (prize) is high enough to get decent ideas/bids.

In the end, that creative, the web platform and whichever creative or agency executes the campaign accrue whatever value is left after you subtract out the premium that used to be paid to the agency.

At the same time, if I understand the model correctly, it leaves room for execution by appropriate professionals, which presumably is still important to big companies like Unilever.

I don't mind this crowdsourcing model as much a) because it does not ask individuals to work for free or deliver finished products and b) in the case of Peperami the prize money justifies the risk of spending time on spec work.

I think we are going to see a lot more intermediation by web platforms such as this wherever and whenever this can bring down costs but at the same assure quality and distribute compensation among the players involved.
  By Miguel | Madrid September 29, 2009 08:43:43 am:
Per my other comment, above, this snippet is taken from springwise.com in a review of crowdspring.com (http://springwise.com/style_design/more_crowdsourced_graphic_desi/).

Since when is 80-336 persons supplying finished designs for no compensation economically productive, not to mention sustainable?

I cannot imagine crowdspring will succeed on a large scale but I do think ideabounty will. The latter's model makes more sense.

Miguel Buckenmeyer
www.miguelbuckenmeyer.com

-------

Some designers may balk at the idea of creating a full-fledged work before having a guaranteed buyer. On the other hand, by allowing both established creative professionals and talented newcomers to compete based solely on their creativity and the quality of their ideas—rather than bids, proposals or portfolios—crowdSPRING could also level the competitive playing field for creative people worldwide. To wit: when the site launched into beta in March, it posted just a stark website and asked the crowd to redesign it for a winning prize of USD 5,000. A few weeks later, a student in the Netherlands beat out 80 creatives and 337 other entries with a winning design. Lesson: never underestimate the power of the crowds!
  By drewt | toronto, ON September 29, 2009 09:33:48 am:
I'm definitely curious of the end result of this venture and how it will develop - It will be brilliant or it will fall flat.
  By elephantik | Medford, MA September 29, 2009 10:14:31 am:
I have to say thankyou for calling a spade a spade Brian Sheehan of Ad Age. But I have to say in this past year alone I have seen a number of companies in the advertising industry so eager to short sell themselves and their business by going to the lowest common denominator. Crowdsourcing produces the worst creative. You get what you pay for end of story. Buying into crowd-sourcing is like buying into risk, maybe the design works, maybe it doesn't. Maybe it will offend 1/4 of your consumer group which you never thought of. Or worse yet maybe it's designed so poorly you'll have to reprint an entire job ten times over. But lastly agencies have expertise, they can track the success of a campaign closely, they have the ability to change the creative on the fly, they have the ability to make large scale events, media-buys etc. happen. What does crowd-sourcing offer you other than that your cutting your media and marketing budget so that you can pay more staff. If you don't need to advertise don't but if you do crowd-sourcing is just a large scale headache waiting to happen. Oh not to mention if some creative hack mimics their favorite identity or package design you might just end up having to pay for the intellectual property right damage as well.

Good luck companies but I am glad Ad Age is keeping the record straight your just trying to get the same stuff for less.
  By cfischer1413 | Batavia, IL September 29, 2009 10:38:46 am:
What a hot topic, and I love it!
In regard to the definition of crowdsourcing - it is definitely a debate of semantics. Simply put, it's many vs. few and the odds are in favor of the many, especially when you're dealing with such subjective impressions.
In regard to the outcome (ideas or finished product) - yes, part of it has to do with cost and why shouldn't it? I think everyone (accept ad agencies) are tired of paying big bucks for only a few ideas that come from a small group of big thinkers.
Embrace the change, it is not a passing fad and will remain to be a player in this game - just look at the numbers of people signing up on these sites like CrowdSpring, AdHack and Janggle.
As for winning a clio - it will happen and I bet it happens sooner than we think!
  By sharon | New York, NY September 29, 2009 12:24:50 pm:
This is a real free for all - and I do mean that in every sense of the word. This has been a long time in coming. It certainly could be a part of a brands marketing plans but it is only a short term tactic. Brand Marketers have long been feeling they were THE knowledge and creative keepers and have been pushing agencies back from partners to vendors. It appears that they believe that brand marketing communications is such an easy thing and does not require much thinking. Let's see how this plays out when brands' long term strategy starts to diminish. Who knows if Unilever thinks this is such a good and cost saving way maybe eventually they will do away with brand/executive management and let the consumer do it all. Think of the cost savings that would bring?
  By Ryan | Minneapolis, MN September 29, 2009 01:51:39 pm:
Isn't Crispin Porter doing this with Brammo? In that case, there's a great agency still guiding the creative process.

Cameron Sinclaire used this very effectively with Design Like You Give A Damn, and Architecture for Humanity. In this case, the briefs where inspired by the ambition to design a better world. (google his TED speech)

If you have a competition every time you need a brand idea, you'll get many ideas, but have no depth, no brand consistency,no bank of experience that's committed to your brand. That is not a reliable way to build a strong brand. Who will carry that vision to execution? It's not like seasoned professionals are spending their days participating in 'crowd-sourcing' competitions.

Sounds like a step up from 'user-generated content,' but going down the same path to mediocrity.
  By craigcooper | craigcooper.com, NY September 29, 2009 02:03:59 pm:
Of course, the crowdsourcing crowd will eventually devolve into nothing but casually devoted hobbyists who don't really need the money.

Trying to earn a living by being one of the crowd is akin to trying to earn a living by playing the lottery.

Ryan from Minneapilis has it exactly right.
  By craigcooper | craigcooper.com, NY September 29, 2009 02:14:57 pm:
Rodney33 - sorry, but that Chicago Pizza Cafe thing is junk, plain and simple.

There is not, nor will there ever be, an "Ad-o-matic" despite the wishful thinking of psudo-scientists.

It's not about Clios -- awards are just a byproduct of doing good work -- it's about making something that doesn't make the viewer barf.
  By rjw2116 | New York, NY September 29, 2009 04:36:58 pm:
Crowdsourcing will never replace the advertising agency. There are so many insights and specialities that an agency can offer. Saying this, I think agencies need to start rethinking the way they operate if they haven't done so already. Traditional Advertising is dead. Check out m blog www.ad-vantage-us.blogspot.com
  By sarah14534 | Rochester, NY September 29, 2009 06:11:22 pm:
Lots of great comments on this, and I agree completely with how misguided this thing is. Another thing Unilever doesn't seem to value, in addition to partnership and insight leading to work that will move the needle, is their own time. If there are people out there who clamor to provide their ideas, as Unilever hopes, imagine the time that the clients will need to spend sorting these things out, managing the respondents, not to mention producing the work. The value equation is all wrong here.
  By sparky9987 | Santa Monica, CA September 29, 2009 06:27:50 pm:
Interesting to me how malleable the term crowdsourcing has become. I think the companies that equate it with exploitation will invoke a huge negative reaction from "the crowd." I also think it is imperative that collaboration take place for it to really work. TopCoder has learned alot of what works and what doesn't through years of trial and error. We at tongal.com are trying to be as fair and transparent as possible as we know we won't succeed unless it's a place where the community feels comfortable participating in the creative process and doesn't feel taken advantage of.
  By michelecolucci | Boston, MA September 29, 2009 06:44:46 pm:
These disruptive technologies and services are simply another step in the disintermediation of the ad business. And though one can question the quality of the "product" they deliver, the reality is commercial interests are encouraging and accelerating these changes. As they say, quality is in the eye of the beholder and the one who picks up the tab.
  By BEN | NEW YORK, NY September 29, 2009 08:56:27 pm:
Interesting debate.

One can quibble with the semantics around whether this is 'officially' crowdsourcing or something else, but the fact remains that this is (just) an experiment in collaborative creativity. Unilever can't be blamed for experimenting in an emerging field, surely. They are clearly aiming for better work at lower cost. We might not all agree with that as a particularly noble or philanthropic ambition, but they're a publicly-listed company . . . what do people expect? If was a shareholder I'd want them to spend less on marketing with greater upside, so if this works, bingo.

That said, Unilever will find that it's not easy, even if the results do in fact turn out to be of the highest quality. For one thing, filtering thousands of submissions is a hugely resource intensive exercise. Then there's the legal minefield around ownership & originality of the ideas submitted. And the question around who is best to execute something conceived by someone else entirely. Sure, many questions remain.

But I think this is a smart move by Unilever. Not least because they will learn a vast amount. It's agencies that should be worried by this, not Unilever. Out of the wreckage of this recession will surely emerge challenging new models powered by mass collaboration; if someone gets the recipe right - right level of incentives, the right level of creative filtering at the right stages, the right path through the legals issues, and so on - I imagine there's a huge opportunity here for a new business model.

Let's see what comes out and then judge this exercise accordingly.
  By nic.ray | London September 30, 2009 11:06:27 am:
I agree with Ben - this is a new and necessary model, that is driven by the client need to be more innovative and efficient with their budgets. But there are definite challenges - which we are working on daily over at IdeaBounty.

To clear up a few points around the IdeaBounty model:
1. We do not see ourselves as an agency - but rather as a innovative platform for sourcing creativity. We have no ambitions to get involved in the production of the ideas, as this requires individuals / companies with formal training, experience, craft skills and the right tech / equiptment. Thus we believe the client should be using Idea Bounty to source their ideas, but use an agency or a production company to produce and craft it into the final execution.
2. Not all briefs are right for a crowdsourcing platform like IdeaBounty. Those that require high levels of insight or research into a category are best handled by an experienced agency. Briefs that involve a confidential product or service are also not suited. However, briefs that involve well-understood brands, that leverage existing brand properties or will benefit from 'man on the street' insight, are perfect.
3. IdeaBounty has invested heavily in the legal framework that governs the site. Both creatives and clients can rest assured that their IP is well protected.
4. The IdeaBounty team offer filtering and sorting of ideas to our clients as part of the service. Yes, this can be hard work, but its fun and you get a lot of insight into what consumers think about the brand in question.

Thanks
Nic
www.ideabounty.com
  By ccasey | Saco, ME September 30, 2009 03:58:05 pm:
@Rodney

I had a chance to look at your link - and no offense - but it was exactly what I would expect from a site like that. Amateur adulterated dreck.

If clients choose that over real advertising it will only serve to make my clients more relevant, creditable, and wealthy.
  By Bruce | Toronto, ON September 30, 2009 05:01:05 pm:
Crowdsourcing is very, very often a cop-out, yes, and maybe the most disturbing symptom yet of the 'whine flu' that's gripping this industry. Thanks for calling it like it is.

And, Brian, it was great to see your name again.
  By Jon | London October 1, 2009 04:15:54 am:
For me, it's important to look at this as a straight forward business decision. If a brand stands to get an equal or better ad from a different process which happens to cost a lot less than the traditional process, then it's certainly worth a try.

If there is ever a brief which is right for crowd sourcing, this is it. The positioning and creative platform are well defined and the brief is tight.

Idea Bounty / crowdsourcing will never replace the agency model but for executional ideas of a marketing or advertising nature, it's certainly more cost effective and in some cases, I'm sure the end product will be better.
  By CHLOE | SHANGHAI October 1, 2009 05:14:29 am:
Semantics are not what we should worry about. IDEA BOUNTY (by the way www.bootb.com was first out of the blocks and hosted a global DOVE BRIEF for USD5000 before the Peperami brief) and its ilk will survive, flourish and co-exist with agency networks. The underlying need for having better and more Ideas faster and more efficiently is undeniable. Recently, Ogilvy has launched an internal collaboration/crowdsourcing tool to get internal "crowd" to weigh in on briefs/problems. High time !!! The primitive nature of knowledge management and collaboration tools within agencies is truly shocking, given that we are in the "ideas" business.Having seen both sides- client and agency- I can just say that the ball is firmly in the court of the agencies. Read more thoughts at http://gurugupta.wordpress.com/
  By cristianp | London November 10, 2009 07:12:40 am:
The crowdsourcing debate seems to be ignoring a couple of points. 1) With the real time web, value can be created both from the process (engagement) and the final product (creative result). 2) Agencies seem to be once again missing the opportunity to embrace a new model in its early stages. More on this in a recent article on DigitalPopuli, would love your thoughts - http://digitalpopuli.com/crowdsourcing/whats-being-ignored-in-the-crowdsourcing-debate/
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