Strategy

Why venture capitalists aren't interested in ad supported businesses

Great article over at the Lightspeed Ventures blog about what it takes to generate $50 million in revenue from an ad-supported website (Fifty million was chosen as it is unlikely Lightspeed would be interested in investing in a company whose revenues top out before it)
O'Reilly sums up the goal as follows:

The power of branding

I saw the following advertisement in a Toronto Subway the other day:

George Brown College

At first, I actually had trouble understanding the ad.
I examined it closely,
twice.
But I couldn't figure it out -
what does UPS have to do with a nurse?

Then it occurred to me - this advertisement has nothing to do with UPS! This advertisement is for George Brown College. UPS has just done such an amazing branding job, that when I see the word BROWN used as a noun, I think UPS.

Al Ries famously explained a brand as "A singular idea or concept that you own inside the mind of the prospect."

Congratulations UPS, you've definitely gotten inside my head.

Does anyone else interpret this ad in the same way?

Technology is changing the way we consume information!?

( just because information has been consumed in a certain fashion
for hundreds of years does not necessarily mean it is the most
effective method of consumption. )

SEO Copywriting

How to title articles and blog posts for search engine optimization (SEO) purposes.

There is an interesting article over at news.com about the increasing necessity for newspapers to use search engine optimization techniques when titling articles.

A basic summary of the article is as follows:
1) Newspaper websites rely on search engines for traffic.
2) Journalists take pride in intelligent titles for their articles.
3) Search engines have difficulty interpreting the meaning of witty/humorous article titles, and therefore rank them lower on results pages.
4) Pressure is therefore being put on journalists to simplify their article titles to increase the newspaper’s search engine placement.

Whether you are writing for the newspaper, a blog, a press release or a web page, the same issue applies. In the new media world, how do you maintain a balance between creativity and utility?

One method is to double-title your articles/blog posts: one title for humans, and one for search engines. It’s almost a light version of keyword-stuffing, the old technique to get to the top of Altavista’s search engine. Double-titling means changing both your web page’s file name and title tag to a specific search phrase for SEO purposes, while using a different human-readable title in the actually body of the webpage.

Double-titling doesn’t always work with blogs and other content management systems (CMS) though, as they automatically set your document title tag and file name to the title of your article.

While some blogging software offer plugins which enable this functionality, there are workaround: you can use search engine optimized keywords as your article title, and then use a sub-title as the first line of your post for humans to read. The end result is three to four word to the point titles, with a subtitle right below it expanding on its meaning.

Although not a perfect solution, double-titling can significantly increase the amount of traffic your webpage receives from search engines. When double-titling, be cautious of “stuffing” your website with keywords - search engines have been known to penalize that.

Stephen Colbert on Wikipedia

Watch the video of Stephen Colbert's explanation of Wikipedia right here

An on running theme in this blog is how the Internet has warped our concept of authority. Stephen Colbert recently made some hilarious comments about authority and the Internet in his daily "word":

Some classic quotes from the segment:

"Wikipedia - the website where you can be an authority even if you don't know what the hell you are talking about."

"When Wikipedia becomes our most trusted reference source, reality becomes just what the majority agrees upon."

Ah, Comedy Central. What will you come up with next?

The unintended consequences of Web 2.0 and social media

What can be done to reduce self-censorship in socially moderated media?

Forbes recently had an interesting article about the failures of eBay’s feedback system. Many socially-moderated systems like eBay’s have a significant flaw: users are afraid of stating their true opinions of other users in feedback comments, as they expect the other user will respond with retaliatory negative feedback. The end result is the majority of users end up having near perfect ratings, even if they do have a very tainted auction history, as the “social norm” becomes maintaining the status quo.

A related problem occurs on a macro scale at many socially-organized news/discussion sites (what marketers call Web 2.0 applications). If a user submits a news story which some members disagree with, that news story is voted down. After the article submitter sees this occur,
they are less likely to continue submitting news stories which are against the grain, as “what’s the use, it will just get voted down again”.

A “social norm” is therefore unintentionally established on the website which gets re-enforced over time. The enforcement of this social norm soon results in the polarization of the community, ultimately leading once “neutral” sites to become clearly left vs right politically, capitalistic vs socialistic economically, or most commonly pro-Apple vs everyone else (I’m a part-time Apple user btw).

Whether or not this polarization is actually a bad thing is another discussion onto itself. The greater question is, if you own and operate a socially-organized site, are you willing to accept the possible alienation of some of your users?

Common sense would dictate that you should try to avoid alienating your customers at all times. So what can be done to prevent social norms from developing on your social media / web 2.0 / interactive website?

The hidden truth of advertising

Advertising has a reputation for being a "fluffy" business. This humerous video, entitled "The Truth In Ad Sales", sums up the issue:
[kml_flashembed movie="http://www.youtube.com/v/fclYmVaORbM" width="425" height="350" wmode="transparent" /]

 

One of the reasons I am attracted to new and interactive media is it
presents opportunities to remove some of this “fluff” by bringing more
accountability to advertising campaigns.

The branding of authority – The HFPA & Golden Globes (Part 2 of 2)

(How did the HFPA, a group of seemingly insignificant people,
gain such authority with their Golden Globe award show? More
importantly, how can other brands emulate their success?)

I recommend you read Part 1 of this post before continuing, as otherwise I may come off as a conspiracy theory crazed lunatic.

L.A. Weekly film critic John Powers described the members of The
Hollywood Foreign Press Association as “essentially just bottom-feeders
around the industry, who’ve somehow been inflated to this point where
their judgment is supposed to be very, very important.” (source) So how did the HFPA gain such authority in the field of entertainment review?

As it turns out, the HFPA gained their authority using pretty sound
business strategy (whether it was intentional is debatable). By
organizing an event which appeals to the needs of all the relevant
stake holders in the entertainment business, and maintaining that event
for a long enough period of time, the HFPA gained authority in the
entertainment industry - regardless of the question if they “deserve”
it.

Who are the stake holders in the Golden Globes?
There are the people who watch the show (the viewers), the people who
attend the show (the stars), the TV network which hosts the show (the
network), the movie studios which gain free publicity as a result of
the shows (the studios), the general media which covers the show (the
media), and of course the Hollywood Foreign Press Association who
organizes the show (the organizer).

It all starts with the beautiful people
The brilliance of the Golden Globes begins with creating an award show that actors actually want to attend. As Hollywood Homes mentioned,
the Golden Globes are known as a social event – the actors get to sit
at round tables with their friends, and are given free alcohol and
“goodies” just for showing up (it also doesn’t hurt that the whole
purpose of the show is to praise the existence of its very guests). Oh
– and it’s all for charity, so it would be improper for them not to
show up.

So the stars show up. The TV viewers love watching stars. The
network loves the viewers, so they jump on board by telecasting the
ceremony. The studios love free publicity, and the purpose of the show
is to publicize actor’s performances in the studios films, so the
studio does all they can to get the media to show up. The media is more
than happy to show up because not only do they need something to write
about, but they love beautiful people too, as that’s what their readers
(viewers?) demand.

So in other words, the HFPA has become an authority in the
entertainment business purely be being a facilitator of an event –
their actual knowledge/experience did not come into play.

…and this is what can be learned from the Golden Globes.
You can establish your brand as an authority on any subject by being a
facilitator - you do not need actual experience in or even knowledge of
the subject.

As stated in a previous post, this is all too common on the Internet, where the process of becoming a facilitator is logistically easier than in the “real” world.

Using a similar model to the Golden Globes but applying it online,
one could become an authority on any topic. Because it is snowing
outside right now, I will use the example of how a brand can become an
authority on snowboarding:

  • Setup a forum, blog, Wiki or similar community-based interactive tool
    on the topic of snowboarding. Let’s call it snowboardingmaniacs.com.
  • Find an “anchor” for your interactive tool to convince “viewers” to
    show up to snowboardingmaniacs.com (e.g. What is the equivalent of a
    celebrity to snowboarders? Pay professional snowboarders to write
    articles for your community? Provide great snowboard photos? etc…)
  • Partner with an “exhibitor” who can help you expand your audience, in
    exchange for a portion of your advertising revenue (become part of the
    Yahoo network? Becoming the official photo gallery of a certain ski
    hill?)
  • Get the manufacturers of snowboard related equipment involved, pumping
    money and free stuff to the top users of snowboardingmaniacs.com
  • Call the snowboard and extreme sports magazines, and get them to print
    a monthly feature about the top pictures from snowboardingmaniacs.com.
  • Continue to repeat this process for a few years, so people get used to the existence of snowboardingmaniacs.com.

Congratulations! Snowboardingmaniacs.com is now an authority on
snowboarding. As the founder of snowboardingmaniacs.com, you are now
qualified to speak at snowboarding events and be interviewed about
snowboarding on the news, regardless of the fact that you have never
stepped on a snowboard (or maybe even seen snow!) in your life.

Isn’t authority wonderful?

The branding of authority – The HFPA & Golden Globes (Part 1 of 2)

(How did the HFPA, a group of seemingly insignificant people, gain such authority with their Golden Globe award show? More importantly, how can other brands emulate their success?)
This is Part of 1 of a 2 part article. Click here for part 2

The 2007 Golden Globe awards were on TV last night. I didn’t watch the show for two reasons: firstly, it conflicted with 24, and frankly Jack Bauer’s antics take precedent over everything but the death of a parent (maybe). Secondly, I don’t really care what The Hollywood Foreign Press Association (HFPA) thinks of this year’s movies.

Although there is a large group of rabid 24 fans who agree with my first point, it turns out that I am actually in the minority with my second. The Golden Globe Awards is considered by many to be the second most important entertainment award show.

So why does anybody give a damn what the HFPA thinks?

Wait, let’s start with the basics.

Who exactly are the HFPA?
According to Wikipedia, the HFPA, the group which operates the Golden Globes, was set up in 1943 by foreign entertainment journalists based in Hollywood.

According to The New York Times,
the HFPA “functions like an exclusive club, admitting a maximum of five new members a year, though more often…accepting only one. Any single member may object to a new member, making it extremely difficult to join. The association does not represent internationally renowned publications like Le Monde or The Times of London — indeed, it has repeatedly rejected applications from a Le Monde correspondent, while accepting applications from freelance writers from Bangladesh and South Korea”.

Some other fun points of interest:

  • The organization has a total of 92 members (source)
  • According to Wikipedia, “As of 2004, some are in their nineties, several others in their eighties.”
  • Only about one-third of the HFPA are full-time film journalists.
    None represent Africa. Members include Jack Tewksbury (writes for
    French readers), Ali Sar (Russian!?), Ron Krueger (Japan!!?), and Ray
    Arco (China, Romania and Singapore!!??!!) (source)
  • The Golden globes previously lost its television contract with CBS
    because it was discovered judges’ decisions were being influenced by
    bribes (source)

If you are interesting in more Golden Globe bashing, check out the documentary film, “Hollywood’s Dirty Little Secret”.

Back to the focus of this article: to try and learn something from the fact that a seemingly unimpressive organization has established a significant amount of respect and authority.

I’m looking for anyone’s ideas as to how the Golden Globes and HFPA became so authoritative and influential in the entertainment business. I’m also looking for insight into how marketers can build similar authority for their brands. I have a few ideas which I’ll be sharing in Part 2 of this article, but would really be interested in what you have to say (feel free to use the comment section)

Also, just a reminder: On Jack Bauer’s Tax Returns, he has to claim the entire world as his dependants.

(Continue to Part 2 of the article )

The need for a new media decision framework

(New media strategy needs a framework which can be used to both choose and develop interactive software)

As mentioned in my previous post on choosing goals for a new media project,
it seems all to common that new media people choose what software
(”tools”) they will use for a project before examining what it is they
actually want the project to achieve.

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