*supercollider

I just discovered Heliomag today, and the last issue was published in late 2007.

So why do I care? Well it looks like a really cool arts and culture zine, in the vein of Juxtapoz. Which is reason enough to be interested, but the kicker is…wait for it…it was published by a mobile provider named Helio.

When was the last time you actually saw a really good branded magazine? And what caused it’s demise?

First, the context: Helio is a stateside MVNO (Mobile Virtual Network Operator). An example of an MVNO for readers in the UK would be Virgin Mobile. The difference between MVNO’s and a regular mobile operator is they own no wireless spectrum of their own. They simple buy network access wholesale and re-package it.

Marketing strategies for MVNO’s vary wildly, and Wikipedia has a nice breakdown of the various propositions. In Helio’s case, they are pursuing the Lifestyle MVNO route, specifically targeting the cool kids. It’s an interesting example of an attempt by a big corporation to create a cool brand from scratch, not too dissimilar a challenge to that faced by Toyota with their Scion brand.

With the goal of building a cool brand from scratch, creating a wicked arts and culture zine like Heliomag seems like a pretty smart move. And the execution was note perfect: they left the product out of it, and created something of real value for their audience.

I love the manifesto:

Helio hopes to showcase some of the most inventive new work coming out of the digital age, while simultaneously providing a revelatory look back into the history of artistic and social expression - because without the past, the present is a pretty blank page.

By focusing on the art, culture, technology and the ways in which the Internet affects our global social consciousness, we hope to create an insightful, intelligent platform for new work. We also want to entertain, educate and look really damn good in the process.

It’s a high value brand property that was contributing a real halo back to brand itself. So, why have they killed it?

Well, as it often does, the reason comes down to money. Or rather, the lack of it. Helio lost half a billion dollars in the last three years, $325m coming last year alone. One of the two original partners in the venture, Earthlink, has stopped investing more money. The only way they are staying afloat is through the funding injections being provided by SK Telecom.

Given they are struggling for survival, you can see how the decision to cut Heliomag loose would’ve been an easy one for their COO, if not their publishing staff. But the problem is that they’ve chosen a marketing strategy that relies wholly on being perceived as a cool and culturally relevant brand, and without brand extensions like Heliomag fueling the word of mouth, how exactly are they planning to differentiate themselves?

Next thing you know they are competing on cost, and we know where this story too often ends.

Too bad, as it looks like they were a brand with a lot of potential.

Technorati Tags:
brand, differentiation, engagement, art, value

What have they got in common? Both have launched brand extensions in the last few days that you might not have seen coming.

Kanye, the platinum-selling hip hop producer, rapper, and blogger extraordinaire (seriously, it’s actually really good), has launched his own travel website, KanyeTravel.com. On the face of it, the sharp point is that it’d link up with his fan site and allow him to sell travel packages bundled with tickets. But I wonder if it’s just of a question of an easy category to white-label, a market gap, and a trial to see how far the Kanye brand will stretch. More details at AdAge.

I’m actually a bit surprised this wasn’t approached as a premium boutique proposition rather than what looks like a simple and fairly crude skin over the Travelocity engine. I think that would’ve added to, rather than potentially diluted his brand, and set him up as a cultural curator of sorts, which is what he is doing with his blog. Possibly this is stage one we’re seeing.

For Red Bull’s part, they appear to be launching their own record label, Red Bull Records.

“They are a lifestyle-based brand that does a lot with snowboarders, skaters, the young Hollywood set, so they think they could have success breaking rock bands.”

Some people might see this as a brand losing focus; after all, this is a caffeinated drinks maker, right? But I think it’s brilliant. Red Bull has up until recently focused exclusively on activation and brand energy rather than traditional advertising, and they are willing to experiment and get their hands dirty to get results. They have experience with arts and culture patronage, with projects like The Art of Can and Illume. And they clearly are tapped right in to youth culture, sponsoring everything from b-boy competitions to extreme sports. So why not think this could work?

The best brands are becoming media companies in their own right, and Red Bull has a blueprint in place for claiming the right to claim true patronage of emerging talent, and capitalizing off the opportunities and credibility available from getting in at the ground floor. It’s a much more powerful story than say The Gap’s endless and meaningless celebrity tie-ups.

It’s ultimately a more difficult and risky proposition than your usual celebrity sponsorship, but the reward will be much deeper and longer-lasting if it works.