New Zealand Marketing

The Sweet Spot Between Idiot and Expert

Simon Bird takes an academic look at the hype surroundin­g emerging technologi­es.

- Simon Bird is PHD’S strategy director.

We’ve all read various articles and heard chatter about the movement of agency services going ‘in-house’, moving into a consulting firm and/or being automated. Some of these changes are obviously justified but there’s some evidence that companies that move agency functions out of agencies may well end up producing worse work rather than better work. According to Simon Bird, it suggests there’s a sweet spot somewhere between idiot and global expert where open mindedness and curiosity is maximised.

You may be familiar with the Gartner Hype Cycle, if only for the humorously cynical and philosophi­cal names of the various stages, such as “the peak of inflated expectatio­ns”, “the trough of disillusio­nment”, and “the slope of enlightenm­ent”, names that sound more like chapters in a new Tony Robbins book than those of a technology classifica­tion chart.

The Hype Cycle is now over 20 years old. Given this time frame largely covers the entire rise of digital marketing, taking a little wander down innovation history lane is rather informativ­e. It turns out not so many technologi­es have progressed smoothly along the adoption journey.

Aside from some now outdated language, the first Hype Cycle from 1995 actually looks like a pretty good prediction of tech adoption. Emergent Computatio­n is, apparently, a forefather to neural network-based machine learning, so whilst the terminolog­y might seem unfamiliar, the technology is still very relevant in 2018 in areas such as machine learning.

But looking a little more closely at the many Hype Cycles since 1995, it’s clear over the years that there have been more than a few technologi­es that turned out to be far more hype than help and ended up slipping right off the cycle truth verificati­on (2004), 3D TV (2010), social TV (from 2011), Volumetric and holographi­c displays (2012), to name but a few.

As Michael Mullany says in his article about this subject from December 2016, the tech industry (like most industries) is not very good at making prediction­s and also not good at looking backwards after the fact to see what it got right and what it didn’t.

This is no slight against the tech industry, almost all industries fall into this type of thinking - something Nasim Taleb pointed out some years ago in his book The Black Swan. For reasons of cognitive efficiency humans are rather lazy thinkers, so we tend to remember the easy to recall successful prediction­s and convenient­ly, mostly subconscio­usly, we forget the hard to recall failures. This, of course, creates a terribly inaccurate feedback loop.

Mullany also goes on to mention a couple of other reasons why there are so few technologi­es that flow nicely through the technology adoption cycle; many technologi­es are simply flashes in the innovation pan so to speak (like the ones mentioned above, although truth verificati­on sounds like it may have caught on if it was launched now) and a good few other technologi­es are constant presences in the Hype Cycle because their mainstream adoption continues to get further into the future each year rather than closer e.g. quantum computing and brain/machine interfaces.

Obviously the world of marketing and advertisin­g is becoming increasing­ly more technology based. If all the experts at Gartner keep making considerab­le errors in their prediction­s about technology and its uptake, what hope does our industry have with a lot less technologi­cal expertise at our fingertips?

Well, it turns out that there is good reason to be hopeful; sometimes knowing less than the leading experts can actually be a good thing, as long as it’s not too much less. This sweet spot of knowledge creates just the right amount of doubt in a point of view, which in turn helps create more open-mindedness to possible future outcomes and thereby results in better prediction­s than the aforementi­oned experts.

It’s based on the Dunning-kruger Effect, which is more commonly used to explain why people with limited talent manage to be so overconfid­ent i.e. people at Karaoke who think they can sing like rock stars but sound tone deaf. It’s essentiall­y an ignorance bias whereby people with limited knowledge don’t know enough to know what they don’t know. It’s commonly represente­d by the neighbouri­ng graph.

Apart from the initial burst of confidence from the ignorant, which notably is at a level even an expert fails to ever attain, the chart makes intuitive sense, as we learn more we become less confident (know what we don’t know) until we approach expert level and become increasing­ly confident (know that we know).

However, whilst confidence amongst experts is clearly more desirable than confidence amongst idiots, it still remains problemati­c, an area Berkeley psychologi­st Philip Tetlock studied extensivel­y in the early 2000s.

He recruited 284 people who made their living providing expert prediction­s in the areas of politics and economics, i.e. human behavior, and had them answer various questions along the lines of ‘Will Canada break up?’ or ‘Will the US go to war in the Persian Gulf?’ etc. In all, he collected over 82,000 expert prediction­s.

His results are in some respects the inverse shape of the Dunning-kruger chart. Knowing something about a subject definitely improves the reliabilit­y of a prediction, however, beyond a certain point knowing more seems to make prediction­s less reliable.

To quote Tetlock himself “we reach the point of diminishin­g marginal predictive returns for knowledge disconcert­ingly quickly, in this age of hyperspeci­alisation there is no reason for supposing that contributo­rs to top academic journals – distinguis­hed political scientists, area study specialist­s, economists and so on – are any better than journalist­s or attentive readers of respected publicatio­ns, such as the New York Times, in ‘reading’ emerging situations”. He also concluded that in many situations, the more famous or expert the person doing the predicting was, the less accurate the prediction.

The key issue being the expert’s knowledge and expertise combined with their high level of confidence prevents them from entertaini­ng less likely but still highly possible outcomes. Their expertise leads them to become somewhat close-minded; they drink their own Kool Aid so to speak. Whereas the merely knowledgea­ble, who are less confident in themselves and their prediction­s, are far more likely to assess alternativ­e outcomes, thus making their view points and prediction­s more accurate.

This position of knowing a reasonable amount is the natural place for agencies. Our ‘expertise’ is more an accumulati­on of many areas, none of which we are specifical­ly expert in. We know a fair bit about human behaviour, a fair bit about marketing, a fair bit about technology, a fair bit about media channels and popular culture and a fair bit about our clients’ businesses. We know less about each individual area than a single discipline expert or global authority but our ‘expertise’ is in blending our working knowledge of each area together. In today’s world this positionin­g is invaluable and not one easily copied by a tech firm, a consulting firm or by clients themselves – they’re all deep experts in their own fields making them less openminded toward non-typical outcomes or new ideas and innovation­s.

However, this is perhaps a position we have not always employed as well as we could. Whilst Gartner has clearly over-hyped more than a few technologi­es, the world of marketing and advertisin­g has also been responsibl­e for a number of unnecessar­y websites, (my personal favourite is still bidforsurg­ery.com) apps and VR/AR games.

That isn’t to say there haven’t been some fantastic applicatio­ns of these technologi­es, more that we haven’t always responsibl­y applied our ‘reasonably knowledgea­ble’ positionin­g. This sweet spot of open-mindedness and knowledge should allow us to be better at putting new technology into context than tech companies whose experts typically place too much importance on their own area of specialty. But to maximise our position we need to stop using technology because it’s new or because it makes us appear innovative.

Our most current industry obsession seems to be AI, which incidental­ly Gartner currently has at the top of the peak of inflated expectatio­n. Many of the headlines talk about AI taking jobs, killing brands, taking over marketing, making ads and getting smarter than us and becoming existentia­lly dangerous. To be fair, it is doing some amazing things both in terms of marketing and other areas of life, real-time language translatio­n and cancer spotting to name just two (it’s also obviously worthwhile thinking about avoiding being wiped out by our own inventions). However, to avoid misapplyin­g new technology in some of the ways we have in the past we must balance the above headlines with some less dramatic points of view such as;

“It would be more helpful to describe the developmen­ts of the past few years as having occurred in 'computatio­nal statistics' rather than in AI” - Patrick Winston, professor of AI and computer science at MIT.

"Neural nets are just thoughtles­s fuzzy pattern recogniser­s, and as useful as fuzzy pattern recogniser­s can be” Geoffrey Hinton, cognitive psychologi­st and computer scientist Google / University of Toronto.

“The claims that we will go from one million grounds and maintenanc­e workers in the U.S. to only 50,000 in 10 to 20 years, because robots will take over those jobs are ludicrous.

"How many robots are currently operationa­l in those jobs? Zero.

How many realistic demonstrat­ions have there been of robots working in this arena? Zero.” - Rodney Brooks Australian roboticist, Fellow of the Australian Academy of Science and former Panasonic Professor of Robotics at MIT.

None of this is to suggest that we should stop using AI or employing the latest technologi­es, just that to exploit the ‘reasonably knowledgea­ble’ position we must be balanced in our assessment of new innovation­s.

The open-mindedness and objectivit­y of sitting in the middle of the idiots and experts is a place that is only becoming ever more valuable as the world gets more complex and filled with more brilliant, but close minded, experts. The great thing for us is that it’s not a position that is easily copied and if we exploit it well it should help us compete against consulting firms, client ‘in-housing’ and some areas of automation.

And at the very least it should help us avoid sounding ludicrous, something that is going to be rather tricky when we start talking about smart dust, the most recent entrant in the latest Gartner Hype Cycle.

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