Nothing Funny About A Good Online Video Business Model

August 20, 2008 at 6:51 am | Posted in Advertising, Business, Marketing, Online marketing, Research, User generated content | 1 Comment
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Courtesy of gapingvoid

Courtesy of gapingvoid

In their new September issue, Fast Company magazine features a fascinating story about the comedy web video business and how it’s almost impossible to make these websites profitable.

They lay out many of the current business models, but I think an addendum is useful. In this post, I will outline a mindset that hurts that industry, what the current business model is and why it doesn’t work, a suggestion to ensure profitability, and the business model that can make an online video site profitable.

First, The Mindset

We tend to think about web videos as a “thing.” It is a product. It is content.

Forget this mindset. If you’re a video producer, web video might be a tangible thing that comes from tangible people sitting around your tangible office. But it’s not.

For your audience, web video is an experience. There’s no actual product for the viewer – the video elevates the spirits or gives us hope or connects us to others. It has more in common with a trip to Disneyland than it does with buying razor blades.

So stop thinking of a video as a commodity and start thinking of it as an experience you provide for your viewer.

Second, The Model

As the Fast Company article points out, the prevailing business model is advertiser-based. This has been the case for most things in the U.S. for more than half a century.

However, the advertiser business model cannot support web video. Consider it: the marketplace is fragmented, niche sites have the most loyal visitors, online is still new to many advertisers, audience has a decreased appetite for ads, and the content (at least on the comedy sites) is oftentimes…edgy, to put it diplomatically.

Even off-shoots of the advertiser model don’t work, such as product placement and sponsored shows. The huge conglomerates that have the money to invest in these small comedy sites only know these sorts of models – give the product away in exchange for some advertiser time.

No matter how many times you throw money at the problem, this business model still doesn’t work.

But that doesn’t mean web videos will never be profitable. (Misters Murdoch and Branson, please have your assistants print out the following explanation.)

Continue Reading Nothing Funny About A Good Online Video Business Model…

No One Cares, You Are Doing It Wrong, And That Is Awesome

August 7, 2008 at 6:27 am | Posted in Advertising, Blogging, Boomers, Business, Communication, Generation X, Generations, Leadership, Marketing, Net gens, Online marketing, Public Relations, Social Media, Web 2.0 | 5 Comments
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Courtesy of jbhill via Flickr

Courtesy of jbhill via Flickr

Marketers are confused these days. The things that have worked for decades aren’t working anymore. Can you imagine if you worked for 30 years in your given vocation and then, almost over night, all the rules changed?

In truth, marketing is only now becoming what it truly should have been – a conversation. Less lies, less spin. Marketers have been shoveling marshmallow fluff down the mouths of Americans and telling them it’s broccoli. And suddenly, as quick as you can confuse metaphors, we find that the emperor has no clothes.

I admit I’ve been frustrated with the old-school marketers. “What is with these guys, and why can’t they get it together?” But that’s not fair. Their whole world has shifted beneath them. I came to a better understanding watching a recent Robert Scoble interview with IBM engineer Mike Moran. (I highly encourage you to check it out: Robert Scoble’s interview with Mike Moran. It’s only 12 minutes long and well worth your time.)

Moran gives a cogent explanation of why marketers are having such a difficult time in the new web 2.0 environment. Here is a small sample:

“The change that’s really happening is you have to learn how to attract people to your message rather than pushing it at them. You have to figure out how you’re going to listen when they talk back. And you also have to watch what they do. Those three things are really critical because once you do them, you have to figure out how to respond.

Those three things are really critical because once you do them, you have to figure out how to respond. When I say ‘Do it wrong quickly,’ it’s not you trying to do it wrong, it’s that you kind of admit that what you’re doing is probably wrong because it usually is. And then you have to look back at the feedback from your target market to see how far off it is so that you know what to do next. And that’s really a tough change for a lot of marketers.

That seems really simple, but think of it: a whole industry has changed in a matter of what, less than a decade? That is pretty outstanding. It’s going from monologue to dialogue, from lecture to conversation, from directing to caring, from crossed fingers to metrics.

Continue Reading No One Cares, You Are Doing It Wrong, And That Is Awesome…

Make Money Writing A Blog – Guaranteed!

July 14, 2008 at 6:50 am | Posted in Advertising, Blogging, Business, Communication, Marketing, Online marketing, Public Relations, Social Media, Twitter, Web 2.0 | 9 Comments
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Courtesy of jbhill via Flickr

Courtesy of jbhill via Flickr

Please forgive the link-bait title. But I do have a guaranteed way for you to make money from your blog. (Do I sound like a huckster yet? Stay with me.)

Gather ’round, kiddies, because this could change your life. And this secret is free.

The secret to making money through your blog is: Be Amazing.

Surprised? The inconvenient truth of the internet is that it works the same way as the real world. In order to make money, you have to work hard and be good at what you do. The pyramid schemes are bunk and no one gets rich quick.

Believe me? You should. And if you do, I have just freed you from the shackles of mediocrity. Can I hear an AMEN?!

Mitch Joel runs a blog and a weekly podcast, both entitled Six Pixels of Separation. Here’s what he says in SPOS #108:

“Everybody wants to know: How do you make money in this stuff [roughly, the online channel]? …It was really cool to see David [Usher] and Michael McCardy [from EMI] really take a different stance. And they were like, ‘You know what, guys? If you create something really amazing, whether its music…or products or services, people are gonna notice. These channels are gonna enable you to spread these messages far and wide. And because they will, you’re going to get more sales than you could ever imagine possible.'”

In other words, don’t blame the microphone if you have nothing to say. Mitch goes on to explain his reaction:

Continue Reading Make Money Writing A Blog – Guaranteed!…

The Seven Deadly Sins Of Social Media

July 1, 2008 at 5:52 am | Posted in Advertising, Blogging, Communication, Companies, Facebook, Marketing, Online marketing, Public Relations, Social Media, Twitter, Web 2.0 | 18 Comments
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Social media like Facebook, Flickr, and Delicious has been around for a couple of years now and companies are starting to dip a tentative toe into the water. While such courage should be applauded, serious missteps have occurred that embarrass the offending company.

And it is not the courageous steps that have been embarrassing, but the sheer level of assholery with which companies have partaken their social media experiments. Because social media is all about sharing, collaboration, and communication, it is little surprise that folks expressed outrage at the heavy-handed or downright immoral dealings of the companies outlined below.

In this post, I will list five of the deadly sins as outlined by Joseph Jaffe’s speech at the ANA’s Integrated Media Conference and then offer two additional sins of my own.

From Joseph Jaffe:

  • Faking (Sprint): The phone company released ads in which the CEO offered an email address, giving the opportunity for communication. Instead, a corporate shill auto-responder emails back.
  • Manipulating (Sony): The maker of the PSP created a fake blog and attempted to manipulate the conversation. They ended up garnering a deserved “golden poop” award.
  • Controlling (T-Mobile): The phone company sent cease and desist letters to a popular blog for using a color they claim to have trademarked. The blogosphere revolted and T-mobile missed a chance to meaningfully engage with its customers.
  • Dominating (Target): A blogger was ignored by the retail giant because they felt she didn’t have the clout of traditional media outlets. After the blogger gained more and more attention, Target claimed that their continued silence was based on a lack of adequate staff.
  • Avoiding (Starbucks): The coffee giant already felt a squeeze from its consumer base, but avoided a fan’s desire to visit every store was passed on. The only response to the fan was one of suspicion.

In these cases, the sin is not that the company was just stupid (though there’s no shortage of that). The sin is that they failed to engage at a pivotal moment with an active community that supported them with their checkbooks. They refused to join the conversation and felt the ramifications.

Here are my two nominations to round out the deadly sins of social media:

Continue Reading The Seven Deadly Sins Of Social Media…

Around The Horn: WordPress Marketing Bloggers Network (WMBN)

May 29, 2008 at 6:16 am | Posted in Advertising, Coke, Communication, Marketing, Online marketing, Social Media, Video Games, Volkswagen, Web 2.0, WMBN | Leave a comment
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You will notice a new list in the right column entitled “WordPress Marketing Bloggers Network.” Founded by Rick from eyecube a few weeks ago, the WMBN provides a round-up of the best…well, I think you can figure it out.

OnlineMarketerBlog is honored to be among such company. As a means of introduction, I would like to point out a few of the more exceptional posts in recent days:

Continue Reading Around The Horn: WordPress Marketing Bloggers Network (WMBN)…

How To Be An A-List Blogger – Study, Study, Study (Part 4)

May 22, 2008 at 6:04 am | Posted in Advertising, Anderson, Chris - The Long Tail, Blogging, Books, Communication, General, Gladwell, Malcolm - Blink, Godin, Seth - Meatball Sundae, Heath, Chip and Dan - Made To Stick, Jaffe, Joseph - Join The Conversation, Marketing, Ogilvy, David - On Advertising, Online marketing, Research, Social Media, Taleb, Nassim Nicholas - The Black Swan, Turow, Joseph - Niche Envy, User generated content, Web 2.0 | 5 Comments
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Update: Welcome Stumblers! If you like this article, please show your love via StumbleUpon. Thanks!

In this installment of the series, I will cover all of the books, magazine, websites, and podcasts that you need to become an A-List Blogger. These resources will give you the ammo to be the very best in your field. (And if you think this amount of reading, watching, researching, and learning is impossible, visit tomorrow when I will share the secrets of how to carve out at least 10 hours per week to study.)

Marketing has a funny relationship with education, research, and good, ol’ fashioned studying. Maybe it’s because the communicative aspect of marketing comes naturally to us that we forget there’s a lot of hard work that needs to happen, too. In short, you cannot be a good blogger or marketer without studying your craft.

You Can Study Communication?

From David Ogilvy: “This willful refusal to learn the rudiments of the craft is all too common. I cannot think of any other profession which gets by on such a small corpus of knowledge. (page 21)” Sometimes the flashy new tools or the expense accounts or the pursuit of new clients can all distract us from our responsibility to constantly improve our game.

And while the world around is may be shifting from books to blogs, an A-list blogger or marketer perhaps should think in terms of content or research or media, regardless of the medium. Read, watch, and listen to as much as possible, and think critically about whether the message has value.

Help Me Help You Help Me

Of course, I can only speak from my own experience. But I thought it might be helpful to outline the books, blogs, podcasts, and other forms of blogging/marketing research in which I’ve partaken during the last year.

This isn’t meant to come off as boastful. My main goal is to impress upon you the importance of continual professional education, then see you buy or subscribe to these resources and suggest new resources to me.

Continue Reading How To Be An A-List Blogger – Study, Study, Study (Part 4)…

4 Reasons Not To Rely On Market Research Alone

May 9, 2008 at 5:51 am | Posted in Advertising, Books, Communication, General, Gladwell, Malcolm - Blink, Marketing, Ogilvy, David - On Advertising, Online marketing, ROI, Usability, Web 2.0 | 2 Comments
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I was freezing my tush off a couple of weeks ago at Wrigley Field and inquired to my good friend why he had made the unlikely (in my mind, at least) switch from marketing to insurance. It seemed to me that he was turned off by the manipulative and predictive nature of old-school marketing – as though statistics and market research would tell exactly how someone would behave.

Then, just yesterday, I read both David Oglivy’s chapter “18 Miracles of Research” in On Advertising and Hank Williams’ post Who Needs Market Research. The stars seem aligned to answer a few questions about market research, including: Why can I not rely solely on market research and how can the online channel help?David Ogilvy

Sure, research is helpful to some extent. As Ogilvy said, “Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals. (pg. 158)” But you are making a severe mistake if you expect focus groups, polls, and testing to divine your strategy like a Magic 8-ball.

Market research (especially customer-focused research) must be taken with a sizable grain of proverbial salt. Here are four reasons why:

1. While I think there is some use of market research, I agree with Hank Williams’ hypothesis that content and experience are much more important. People cannot articulate an experience they’ve never had. Focus on producing good content and a good experience – not whether people claim that they understand how they think they will respond to a hypothetical situation. And even if you have the product or advertisement, do you really think people will respond the same way to it during a focus group at the mall as they would in their own homes?

Continue Reading 4 Reasons Not To Rely On Market Research Alone…

Ogilvy vs. Godin: Is The Big Idea In Advertising Dead?

April 29, 2008 at 5:28 am | Posted in Advertising, Books, Boomers, Communication, Generation X, Generations, Godin, Seth - Meatball Sundae, Marketing, Net gens, Ogilvy, David - On Advertising, Online marketing, Social Media, Web 2.0 | 5 Comments
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Is the concept of the Big Idea dead in advertising? How much has the internet and Web 2.0 specifically altered the fundamentals of the industry?

In his 1983 book, On Advertising, master David Ogilvy held forth on the central tenet to sell products:

“You can do homework from now until doomsday, but you will never win fame and fortune unless you also invent big ideas. It takes a big idea to attract the attention of consumers and get them to buy your product…Research can’t help you much, because it cannot predict the cumulative value of an idea, and no idea is big unless it will work for thirty years” (emphasis by the author, page 16).

And yet, almost the very same day as I read this from Ogilvy, I find myself almost stunned off the treadmill as new master Seth Godin holds forth on the big idea in the third disk of his audio book, Meatball Sundae:

“There’s a difference between a big idea that comes from a product or service, and a big idea that comes from the world of advertising. The secret of big-time advertising during the 60s and 70s was the big idea…Big ideas in advertising worked great when advertising was in charge. With a limited amount of spectrum and a lot of hungry consumers, the stage was set to put on a show. And the better the show, the bigger the punchline, the more profit could be made. Today, the advertiser’s big idea doesn’t travel very well. Instead, the idea must be embedded into the experience of the product, itself. Once again, what we used to think of as advertising or marketing is pushed deeper into the organization. Yes, there are big ideas. They’re just not advertising-based” (disk 3, minute 48).

Of course, we should probably define a “big idea.” As explained, a big idea is an advertising tool to sell products. It stands the test of time. It originates with the company and is distributed far and wide. It is inextricably linked to the product and the experience of the product.

In my mind, big ideas include cut-out coupons. By-mail Sears catalogs and mail-in rebates. Tony the Tiger and the Trix Rabbit. Toys in cereal boxes that had kids begging Mom to pick that one! (Why cereal innovation is on my mind this morning, I have no idea.) Shopping malls. Radio jingles. Anything that fundamentally affected people’s decision about whether to buy a certain product or not.

So where do I stand?

Continue Reading Ogilvy vs. Godin: Is The Big Idea In Advertising Dead?…

Advertising Mistakes – How Your Paid Search Is Hurting You

April 16, 2008 at 5:35 am | Posted in Advertising, Communication, Marketing, Online marketing, Web 2.0 | 3 Comments
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Most business owners have heard about Google or Yahoo ads and many are participating in these programs. These solutions allow your specific ads to reach your target audience at minimal cost.

So what’s the down-side? Can paid search actually hurt you and your brand?

The answer is a resounding yes. Done right, paid search advertising is one of the easiest ways to increase knowledge of your product or brand. But done poorly, it can cause your marketing budget to hemorrhage and turn your customers against you.

There are two ways that your paid search could be detrimentally effecting your brand.

Continue Reading Advertising Mistakes – How Your Paid Search Is Hurting You…

Epic Fail: Customer Service – How Citibank Failed and Why They’ll Never Know

March 27, 2008 at 6:38 am | Posted in Advertising, Amazon, Citibank, Communication, Companies, Decision making, General, Godin, Seth - Meatball Sundae, Marketing, Online marketing, Web 2.0 | Leave a comment
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Update: I’ve received some attention from the post below, but I feel as though I should clarify a few things.

The email from Citibank was lame, but for a huge company, not totally surprising. However, the arrival of this email does not necessarily negate that the company is listening. Toward the end of the post, I make that connection and most of the time, it’s true. In this case, however, I don’t think it is responsible to connect one lame email with a company’s entire attitude.

That said, the moral of the post – companies who fail to listen will be overtaken by those that do – still stands. I believe that will only become more apparent as time goes on. -End update

To fail may be human, but for a company to fail at customer service these days may well be disaster.

You may remember when I mentioned a Citibank ad last week in a post about features versus benefits in advertising. Their print ad was spot-on when it spoke about how Citibank fit into their customers’ lives (plus, who can resist a cute puppy?).

Citibank fail small

Epic Fail

So when I sent them an email noting my complimentary post, I expected at least a quick “thanks!” That’s the response I got from Moosejaw (they even promised to send me some schwag which must have gotten lost in the mail…). So imagine my surprise then almost 48 hours later, they reply with a standard “sorry, we can’t even respond to your email” email.

Continue Reading Epic Fail: Customer Service – How Citibank Failed and Why They’ll Never Know…

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