New ad models for indie content?

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After a comprehensive analysis of the state of display advertising (worth a read in itself), John Battelle is agitiating for a new advertising model for individual bits of content can be monetised, which…

…attaches value to an individual piece of content, such that the piece of content is monetized as it travels around the web, getting reposted, tweeted, shared on Facebook, pinned on Pinterest, and so forth. Such a model is incredibly difficult to create, but not impossible. I promised a follow up post. Continue reading

Forrester on paid content

A new Forrester report says that people paying for ad-free content is undermining the efficacy of advertising still further. 

I’ve blogged about it on the Brilliant Noise blog

There are no shortage of opportunities to buy media space – the real estate, as it were is increasing – it is just that the attention you will find there is dwindling -as in, there’s less people looking at it – and shallow people avoid the ads (skipping, blocking) or shift their focus three quarters have another screen right in front of them while they are watching TV, for instance.

The conclusion? Brands need to invest in their ability to create, curate and distribute content, or “content capabilities” as Forrester puts it.  

“Gravity-defying” TV advertising in danger of a crash

Business Insider editor Henry Blodget reckons that what happened to newspapers in the last decade is about to happen to TV: an advertising collapse.

Decline was worried about by newspapers for a long time, but denial and hope prevailed until things, well, fell off a cliff:

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Against this picture of doom, you could offer a number of statistics that seem to point in the opposite direction. People still spend more time with TV than any other medium, much of it with live TV. It occupies so much of our time – on average – that it looks unassailable as our preferred medium.

And yet… we could be still approaching the edge of that cliff, if the advertising budgets are about to switch away.  Continue reading

The flawed optimism of digital advertising models

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“Do you do any work on how annoying you are?” – Peter Day to an ad re-targeter…

In Business, the podcast by the BBC’s Peter Day, is something I have enjoyed for years. Every now and again he does a programme which is so exactly pertinent to things I’m working on that I listen to the whole thing with a broad grin, while a sort of Hallelujah chorus jangles about in the back of my mind while I am listening…

For Your Information was one of those. I’ll be coming back to some of the trains of thought that departed this particular station in some future blog posts, especially its focus on information overload’s effects on productivity and organisational effectiveness, which connects directly with the web superskills theme I talked about at TEDx in January.

For now, the thought I want to share is one sparked by a comment that Peter Day made to a online advertising re-targeter: “Do you do any work on how annoying you are?”

He was talking about the irritation he might feel when an ad for something he searched for days ago followed him around for days afterward.

The response wasn’t convincing. Of course you don’t want to annoy your potential customers, said the re-targeter, and they provide tools to help you not blitz people.

I wonder how many users of the system calibrate in that way?

Re-targeting is just the latest in a long line of advertising technologies and innovations – latterly mostly in digital – which promise – and often deliver – “uplift”, greater click-throughs, sales, awareness etc. than previous methods.

There are two broad responses to an ad following you around the web. The first is “Wow, that’s cool!” The second is a raised eyebrow, a suspicious sneer, a question: “Why is that happening? How do they know who I am? What elese do they know?”

Response one typically comes from, er, people in digital advertising. The second, in my experience, comes from anyone else.

The steady flow of privacy nightmare stories and Facebookphobia in the media and generally in people’s consciousness is raising a – probably healthy – scepticism about online media. The more digitally literate the average user becomes the more they question what is happening to their personal data and how it is being used.

Wishful thinking on the part of online media companies and digital agencies means that not enough work is going into thinking about this growing, fundamental user need.

Apart from the inconvenience of facing up to the possibility that people might not want to play exactly the role alloted for them in the great media/marketing ecosystem, the digital advertising industry is let down by a kind of fatal optimism. They only want to look at the good news in the data and not the bad.

The thing is, that the bad news might be as useful, even more useful than the bad.

To illustrate, take a look at “success” in a typical online display campaign. A clickthrough rate of  0.2%.

Doesn’t matter what happened to the other 99.8%, i.e. most people. They simply weren’t interessted enough to look.

When it comes to re-targeted ads, social ads, etc., the clickthrough rate improves over that of typical ads. I wonder if annoyance and negative feelings to brands using these techniques does too?

Clues about what people don’t like in ads - signals of dissatisfaction, if you like – abound, but it always the positive outcome on which paid media professionals are focused. Maybe there would be more use in looking at all the data, including the damage you may be doing your own cause?

 

 

 

Media in the age of networks: the decay/evolution of advertising models

The Association of Publishing Agencies first International Content Summit was a great event to attend, as a speaker and a delegate. As well as the many inspiring and useful speakers, it was the ambition and optimism of the industry there that was striking.

This is the contract publishing industry, the kinds of publishers that create the supermarket mag, the in-flight periodical, the car brand’s customer title. Largely due to this lack of reliance on advertisers (beyond the client) and cover-price revenue it was a different kind of publishing gathering to ones I’d seen before.

There was little of the web-denial, the over-obsession with iPad as a saviour for the industry, a way of porting old formats (and business models) into the age of the web. The sense I got was of opportunity, of openness to new ideas and possibilities.

As I said in the notes to my talk, the marketing and media sectors are wide open for new approaches, new business models Everything is up for grabs, from content formats to how advertising is sold.

On that last point, I was really impressed by the analysis of the decay of the traditional advertising model presented by William Owen of Made by Many (one of the most interesting firms in this new space). His slides are below, but I recommend taking a look at his blog post which walks through his arguments.

William was set the brief by the APA of answering the following question: “is the traditional [advertising] model dead?”.

His response was to begin with a sensible “no”. Obviously the media buying-centred model of advertising is alive and kicking multi-million pound behinds. But it is decaying, and evolving.

Walking us through possible stages of the advertising model’s evolution (or decay, depending on your point of view), William took us through mass, fragmented, earned media models and arrived at this networked model (I nearly stood and cheered at that point, but this was an English conference so resisted):

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The networked media model. This diagram is really a crude approximation of something much more complex: communities of customers becoming value producers in their own right, creating content, making recommendations, providing thousands of small services to each other. There’s an opportunity for brands to harness that power by adding services to products and creating communities of interest around social objects.

And of course there are also opportunities for still-powerful media channel brands in television and print to build direct relationships with advertisers and sponsors, using technology creatively to build applications that add co-branded services to content and facilitate direct transactions. This removes their reliance on ad networks and ups their margins.

He’s got it dead on, I think. That’s not to say I won’t be continuing to mull this presentation over for some time to come to challenge and build on the ideas, but for now I simply applaud…

William ended by quoting Russell Davies:

Experience Design will become the master discipline for businesses that want to be good at selling stuff.

That actually sounds obvious to a lot of us in this space, but it is worth repeating, rolling around the brain, and repeating again. That is experience design, not media buying, that will be at the core of the selling part of the media/marketing complex in years to come. Those experiences will be conceived in, of and through networks.

Q: What’s the number one thing people want their browser to do?

A: Block ads.

Sometimes it’s worth reminding ourselves of the simple truths about online media and marketing.

Like the fact that, given the choice, a lot of people don’t want banner ads, pop-ups and other sundry promotional interruptions getting in the way of whatever they are dong.

I was reminded of this when Google kindly turned on the ability to add extensions for the Chrome browser on Macs today.

Number one on the list of things I could download to improve my browser was Ad-Block

And down there at the bottom you can see another version. Half a million unique users that don’t see a thing…

How advertising distorts brand marketing

“Only when television managed to emancipate itself from the economic construct of advertising was there a real emancipation of story.”

So said David Simon, creator of the greatest piece of art that has ever aired on television, The Wire – speaking at the Edinburgh TV festival last month (about in an interview with Charlie Brooker.

Similarly, brands – companies, organisations, whatever – need to free themselves from advertising as the core of how they communicate, how they practise marketing.

So do agencies (in fact many of them are already).

Advertising, to most people, *is* marketing. Since the 1950s at least, the TV ad has been the hub, the centrepiece of how marketing gets done. It’s where the money is, where a lot of talent goes.

Anyway, I was thinking about this last week prepping for a presentation at NMALive called “Influencing the Influencers”.

The title set me of on three trains of thought:

  • 1. How advertising as an “economic construct” distorts marketing and therefore business more widely.
  • 2. We need for models of communication that target both traditional influencers (media, celebrities, experts) and “accidental influencers“.
  • 3. Networks are inherently unpredictable (because they complex adaptive systems) – we need to avoid illusions of being able to predict and control behaviours and focus on “How to be lucky” as brands.

Here’s the presentation…

How to Be Lucky (Influencing the Influencers presentation from NMALive Sep 09)

Back to advertising vs. marketing. Advertising, TV advertising, distorts marketing in the digital age in lots of ways. The business models and the economic imperative still pulls in disproportionate amounts of budget, talent and attention from brand owners and marketers generally.

Just as The Wire was the result of TV being set free as a medium from advertising-only business models, organisations will benefit from being set free from the distorting influence of the advertising only model.


No top Facebook apps from brands either…

Just as you won’t see a “viral video” from a brand in the blockbuster list for this genre, you won’t find any apps from brands in the top Facebook apps list.

As Dirk at News from the Herd notes, it’s about certain kinds of useful when it comes to hitting the sweetspot with Facebook users:

1- Produce addictive but simple to use games that don’t force ad messaging down users throats

2 – Give them a way to organise their lives, and/ or:

3 – Provide them with mildly competitive ‘social comparison’ tools vs their friends.

As Inside Facebook noted, the recent redesign of Facebook shook up the developer leaderboard, bringing the likes of LivingSocial to the fore.

Interesting to see Causes in the top 5 apps out there on Facebook. Reminds me of the excellent Brita “Filter for Good” campaign in the US, to reduce the amount of bottled water being consumed. The Facebook app and the Facebook group for this were just a couple of the parts of the approach.

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The brand benefit is direct in this case – but it is a brand behaving like a movement, and benefitting (in terms of awareness) from helping people acknowledge, pass on a call to action around an issue, without having to commit to a great deal of effort. If they want to talk about it more, get involved more they can and Brita will give them a little more data and tools to do so (if they’re smart, which they seem to be).

Dirk asks if brands can ever win in Facebook:

It will be interesting to see if brands manage to make much head-way here, or whether it really is a case of as P&G’s head of interactive said last year, you can’t monetise a space where someone is breaking up with his girlfriend.

It’s a nice, pithy, provocative question. But monetising, advertising, interupting, branding up these spaces are far from the only option for brands. I think that as more brands develop their social web literacy we’ll see them feel more at ease with spaces like Facebook, find their legitimate, useful places in them.

I’m not sure if they will ever be blockbuster app hits that make it to the Appdata leaderboard. I think that should probably not be an objective for a brand. That “big is best” attitude is another one of those hangovers from channel thinking.

: : You can keep an eye on who is winning on Facebook by apps and developers at AppData.

Q: What have the most popular “virals” of all time got in common?

A: None of them was an advert (if you don’t count movie trailers).

I’ve taken to bookmarking excellent viral videos when I see them. Reason being, whenever I’m asked which viral videos are my favourite (journalists, conference panel moderators and analysts seem to ask this most often) I can never seem to recall one.

Maybe my recall for “virals” is like jokes – I’ve basically got three slots in my long term memory and once they’re full, I’ve not got much to go on.

This obsession with “viral videos” is a legacy thing, a hangover from the channels model of media. People projecting their wish that the world were still simple eneough that a 30-second video (easy concept to understand, recall, make money out of) still sat at the centre of it all.

Bild’s Vado publishing eco-system and the promise of user generated advertising

Image: The Bild.de Vado from Creative

Image: The Bild.de Vado from Creative

This was an amazing week, that passed at a few hundred miles an hour, so sorry for the silence.

First thing that has grabbed me this morning as I peruse my feeds is this story from Jeff Jarvis about how the German magazine Bild, took the concept of the Flip‘s small, simple video camera, made it its own and sold 21,000 to readers in five weeks for just 69 EUROs each.

Result: thousands of “reader reporter” videos being submitted. Soon, the magazine says it will be using this growing installed based of video camera’d readers to launch a concept called “user geenrated advertising” in four weeks.

Intriguing…

Here’s Jeff talking to Kai Dieckmann, editor of Bild about the story of the Vado so far…

The magazine worked with electronics company Creative to make the camera which sells cheaper than the already reasonable Flip. Even at the poor Sterling / Euro rate we’re looking at a Flip-like camera for about £50.

The uploading of video via USB to your computer defaults to Bild’s website… which encourages people to post their videos there, naturally.

The model reminds me of iPod+iTunes, only in reverse – it’s about creating content rather than just comnsuming it. In this case it is camera+platform+media company to go and promote that platform…

Really looking forward to seeing what this highly innovative media company does with “user generated advertising”. I’ll be asking my colleagues at iCrossing Germany to keep a close eye on how this thing evolves…