Posts Tagged: advertising


14
Oct 09

From Old to Newest Media in the Time of Convergence

One of the biggest distinctions between the future of what users will want to do on the internet from what they did or in fact are doing now, is the difference between being passive viewers and active participants. Old Media doesn’t get this important orientation on how it needs to treat its audience. Imagine a bar where you could only talk to the bartender? It is like the mentality of the Economist to set a paywall for their content and beg for their “loyal” customers to pay. The “make–>push” content model is not going to thrive in the Time of Convergence (which is almost really here this now btw).

In my little sketch above I am trying to tease out some of the key issues facing online media organizations. Our approach of course, as you can see in Heritage Key ( I hope), is from the almost-off-the-chart right position of newest media. We are trying to figure out how to mix the content-focus with social tools with the interactive tools in the most unique way.

I can break-down some of our ideas as follows in terms of the content that we make and people consume:

  • News — breaking items, needs to be fast on the site and some value add to reacting to web flares, creating news content is a big plus
  • Articles — this is the focus of the commission effort to effectively surround useful topics with a series of articles, interviews, video pieces. You would expect to gain some lift on google/SEO as you create content against sets of keyword objectives.
  • Media — images, video, galleries, maps that are either unique or curated. Presentation and navigation are critical. We use Solr now to add discovery aspects to site search.
  • Interactive — answer the challenge of what to do on the site. So we have some quizzes, but really the big attraction for Heritage Key is the Virual Experience (GoVirtual).  While enabling comments on a site is not always so easy, it is hard to consider that basic feature as very interactive these days.
  • Directory — collects, curate, manage relevant data that is needed by the community. Add community/social filtering to expose data back to site visitors (i.e. popular, rated recently, new)
  • UGC — shift now is to manage the flow of user generated content and raise relevance and quality. YouTube is struggling as an example to separate out the noise/infringing content from the serious/regular content creators. My sense is that the site owners need to direct/drive UGC a lot more. It will be the role in fact of the site to help people do more than they can otherwise do themselves = a better package, more traffic, more distribution, more promotion as much as a better concept.

These are the components, the challenge is to get the mix right and scale the production costs against the overall revenue potential of the site/brand.

As we continue to rollout our vision on this in Heritage Key, it is clear why Old Media doesn’t get Convergence and why even New Media players will have challenges making the next transition. Organizations work better on push. You can plan, manage push in a much more predictable manner. Where the site needs to marshall the community, well, it is a lot more difficult and outcomes less certain. Video killed the radio star. The requirements for success in the future will be no less dramatic. The “push” stars won’t “pull” communities.

One way to mitigate some of the risk is to get the hardcore users into the alpha/beta testing areas. It is important to engage people that will be the evangelists or even find solutions with you. But you will need to expose the ongoing work–which is a minimum is uncomfortable. With large deployed online brands it may require new branding and even new sites as testbeds/community crucibles.

Another point in comparing the players that is worth making is about the cost of content creation. The Old Media players have very high costs, often with long cycle times from idea to publish. Production costs must go down. Newest media content production is low and will get lower. The quality is perhaps not the same, but as we already see with blogs and tweets the immediacy is must greater.

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5
Oct 09

Internet Advertising Passes TV in UK

It is a milestone that actually doesn’t surprise anyone working in online/new media–but it is here nonetheless the IAB reports that online advertising has surpassed tv in the UK.  The IAB further comments: “The UK remains the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as advertisers follow their audiences online and look to the internet for even more measureable and accountable methods.”

Great quote from the Guardian piece on this event: “The milestone marks a watershed for the embattled TV industry, the leading ad medium in the UK for almost half a century. It has taken the internet little more than a decade to become the biggest advertising sector in the UK.” It sure seems like the last ten years have been the warm-up to the more revolutionary impact of internet technology.

Times Online points out something interesting: “Interruptive formats, which include pop-up adverts, fell by 9 per cent to £6.8 million.” Yes, pop-ups, pop-unders and other annoying stuff is not that productive or brand endearing for advertisers.

But I really wonder if the internet is gaining faster than tv is just losing audience. TV programming seems lost and confused–or US driven here in the UK.  (although the BBC series on Darwin is awesome). We have Virgin cable at home and I think I spend more time looking for something to watch than actually watching something. (actually maybe I need a digital set-top box recorder).

We believe that online will accelerate its dominance over print and TV in 2010 and beyond. The media landscape will change completely, forever when more people start browsing from their slick new HD TV’s–watching HD video from YouTube. TV will just be something embedded in a browser. The Convergence is upon us soon enough. Yet, the main driver is the pace, immediacy and interactive nature of online. You can have multiple threads of activity and you get relevant stuff faster. And online is portable to iPhones (=ubiquitous).

From the content creation side, the big difference between online and TV/print is the cost of production and distribution. It is hard to see how the established media players can compete against the longtail armed with HD video cameras, DSLRs–and their passion. Distribution cost are zero! (ok maybe $100/year if you use Blip.tv)  It should not be a shock that advertisers are looking to move to the new wave of reach, relevance and interaction. Sure, the reach is not the same, but really that just means the advertisers need to change how they buy if they want to find the right brands to support.

Of course we see Heritage Key as an example of the innovative edge of new media. It is a content-oriented community with real-time social web interaction. It is a web2.0 plus virtual.  The site adds value to real-world travel and education in an entertaining, sticky manner. People can share their travel adventures to ancient world places and make their own discoveries.

But we are not alone at all. There are other sites to study that have strong UGC and innovative interactive applications–look at Livestrong with their Daily Plate ( and you can check other Demand Media sites here). Or look at the podcasters like Cali over at Geek Brief TV running very tight, focused, regular video.  On the grand scale, it is also very interesting to watch how CNN is mixing broadcast with online in a serious way.

It would be really interesting to look at demographic data for the under 25′s to see where the online hours/week compares to TV viewership. If I had to guess it would be 10 hours plus online and 1-2 TV per week.

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