Tags: Advertising, business model, focus groups, Marketing, monetizing, Research, UGC, video
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.)
Tags: Business, Communication, Marketing, Online marketing, Social Media, social networks, Web 2.0
Social networks are all the rage and many of my posts at OnlineMarketerBlog recommend social tools for businesses. However, there are potential pitfalls to consider before you facilitate interaction between customers and your business.
Here are 21 things your business should consider before starting a social network:
Internal (Your Business Capabilities)
1. Can you invest the necessary resources to run a social network properly? Can you afford the tens or hundreds of thousands of dollars it takes to properly create and staff this resource?
2. What is the role of marketing, sales, IT, customer service, advertising, HR, etc.? Social networks often delve into all of these departments and more. Make sure all of your teams are engaged, enthused, and prepared.
3. While the potential ROI of a social network is proven, is this the best investment of your time? If you don’t have a unique product or your customers aren’t enthused (or your product isn’t any good), don’t look to a social network to solve your problems.
4. What are your expectations – number of members, amount of content, etc – on a weekly, monthly, and yearly basis? Create little benchmarks to ensure you do not go far off course.
5. Will your employees have their own voice on the network? Will they use their full names? This transparency can be daunting, but it can also provide high emotional buy-in from employees.
6. Is the correct employee in charge of the social network? This is often not the highest paid or the most experienced.
7. Which came first: customer need, company strategy, or cool technology? If it’s anything besides customer need, reconsider everything.
Tags: Business, Facebook, Generation Y, Groundswell, Marketing, millennials, Net gens, Online marketing, ROI, Social Media, Tweens, Web 2.0
Generation Y – roughly those aged 13-29 – are among the strongest consumers and influencers. And while social media like Facebook, delicious, and Flickr have garnered media attention, many businesses are still wary of dipping a toe in the social media water.
I argue that we can gauge return on investment (or influence) for Gen Y by looking at their buying power and online behavior and therefore that it is imperative that (most) businesses participate in social media. Plus, I will give you the research to back up these assertions so you can prove it to your boss.
Growing up in pre-internet Ohio, I spent a good chunk of my allowance and lawn-mowing money on comic books at the local pharmacy. If they were sold out of my usual books, I was SOL until the following month. Scarcity of goods required that I go where they were (and quickly!) or I would miss out.
Now, post-internet, these stories sound quaint. Given a bank account, any kid can get any comic book from anywhere in the world. So what does this have to do with social media and Generation Y?: proximity to resources.
Today, consumers expect businesses to come to them. Long gone are the lazy summer bike rides to the pharmacy – today, young people expect to be able to spend their money just about anywhere. And where are they? Online, in general, and on social media, specifically.
Maybe this shift isn’t a surprise to you, but let me prove it with research (easily printable for timid bosses or humbugs).
Tags: blogging, Business, Communication, company, content, corporate, how-to, HowTo, Marketing, Online marketing, Social Media, tutorial, UGC, user generated content, Web 2.0, Web2.0, White paper, white papers, writing
You’ve heard all the hype about Web 2.0, but what does it all mean? How will it affect your business?
How do you communicate with potential readers and customers in this new era?
My free white paper, Writing Content in a Web 2.0 World, answers these questions and:
- What exactly is Web 2.0?
- How should your writing style change?
- How has online interaction changed and what will this mean for the future of business?
- What is the secret new currency in this market?
Download the white paper here: Writing Content in a Web 2.0 World
(The white paper is in PDF format. Download the latest version from Adobe here.)
And of course, please join the conversation! Leave comments here with your thoughts and suggestions for this or future white papers.
I considered requiring you to subscribe to my enewsletter to download the white paper. After all, if you were interested in this subject, it’s a sure bet you will be interested in my other content.
However, I’ve decided that this requirement does not fit well with my overall strategy or the community environment found in a Web 2.0 world.
Tags: Facebook, Forrester, Marketing, MySpace, Online marketing, Research, ROI, Social Media, social technographics, Usability, Web 2.0
Last week, a lot of you read my guest post about the ROI (return on investment) of social media. There is no doubt that social media is changing the ways people interact online and hence, the way companies communicate with their customers.
The thing that is still missing is quantifiable data about these interactions. We’re in a theory stage – we know what’s right because we have experienced it – but we are still waiting for proof in numbers. Forrester Research made a giant step in the right direction when they introduced social technographics.
Social technographics is an analysis of consumers’ approach to social media – not just which ones they use, but understanding how they use the medium in their daily life. You can download the full report on Forrester Research’s website (there is a fee) or read the book on the same topic published April 21, 2008: Groundswell: Winning in a World Transformed by Social Technologies by Charlene Li and Josh Bernoff. (There is also a ton of free goodies at the Groundswell blog.)
I sat in on a webinar last week where Charlene and Josh expounded on their work. Josh summed up the goal of this work: “Think about what you want to accomplish, not the technology.” There is so much fascination about what technology can do that marketers often forget the question is what technology can do for you. The webinar came back again and again with the message to use this data to inform a strategy for your clients. (You can find the resulting Q&A published post-webinar here.)
How’s It Work?
Charlene and Josh categorize web users into six sections based on the level of their activity, from Creators to Inactives. I have not seen a clear but simple ranking system like this before and I certainly hope it is accepted as an industry standard. The real value, however, comes from their detailed analysis of each category’s activity.
Tags: Communication, Jaffe Juice, Joseph Jaffe, Marketing, Online marketing, Social Media
My audio comment was featured on yesterday’s new episode of Jaffe Juice, the new marketing podcast. I highly encourage you to go to iTunes and download episode #107. You can hear my comment around minute 7, but the whole episode is quite interesting. (Download information found at Jaffe Juice #107.)
If you don’t have time to download it, I’ll explain in this blog post. Jaffe Juice #107 centered around Sarah Robbins’ challenge about taking new media (blogs, twitter, del.icio.us, Flickr, Facebook, etc.) out of the marketing “fishbowl” and making it relevant to business, Middle America, and everyone in between. She contends the following three points:
Tags: A-List bloggers, A-list blogs, blog, blogging, blogs, Calacanis, CalacanisCast, commenting, comments, Jason
“How to become an A-list blogger,” indeed. I may be going out on a limb with this series because I am not, in fact, an A-list blogger. However, I do contend that you don’t need a Ferrari to know how to get to the grocery store. I’m perfectly happy being the Honda Accord of your marketing strategy.
I got this idea from mega-blogger/Web 2.0 pioneer Jason Calacanis. If you’ve never heard of him, you may have heard of his companies. He started Silicon Alley Reporter, co-founded Weblogs.Inc, then became general manager at Netscape (when they were good), joined up with Sequoia Investments, and founded Mahalo.com. Needless to say, I can’t hold a candle to this man.
However, while I was at the gym, I was listening to a months-old edition of the CalacanisCast, in which Jason off-handedly offered two simple ways to become an A-list blogger: show up (fairly obvious) and comment on other (respected) blogs. Here’s the quote:
Tags: arts, Communication, Email, eNewsletter, eNewsletters, Marketing, Online marketing, Politics, t-shirts, The New Republic, Threadless, TNR, UGC, user generated content, Web 2.0
In the inaugural eNewsletter battle, I pitted Moosejaw vs. Cool Hunting. Today, I’m placing two more eNewsletters in a Mason jar, screwing on the cap, and shaking it until only one remains.
The winner: Threadless
Threadless is an online t-shirt manufacturer based in meat-space in my new home, sweet Chicago. They also possess an undeniable cool factor and loads of fun-ness. Here are some reasons why you should sign up for their newsletter: Continue Reading eNewsletter Winners and Losers: Threadless vs. The New Republic…
Tags: Advertising, Anheuser-Busch, Bud, Bud Light, Budweiser, Communication, Doritos, Facebook, integration, Marketing, MySpace, Online marketing, Search, SEM, SEO, SoBe Lifewater, Social Media, UGC, user generated content, Web 2.0, web integration
Hey, remember the Super Bowl and all those cool ads? Yeah, me neither.
I could have bookmarked the URLs of company’s whose ads I enjoyed or told my friends about cool microsites I experienced, but I didn’t because the web was largely forgotten in this year’s ads. URLs were printed small and almost always at the end of the ad, there was only one example of user generated content, few (if any) microsites to continue the experience after the game, and generally poor use of search. What a waste of $2.7M.
Michael Estrin of iMedia Connection has a good wrap-up and several interviews of note. The question he pursues: where was the web? From Estrin’s article: “It was like we went backwards this year,” says Sean Cheyney, VP of marketing and business development at AccuQuote. “It’s like we’re moving back into silos. I was surprised that companies didn’t do more integration. The web was an afterthought for most of the ads.”
Beyond the 30-second Spot
AOL’s Annual Super Bowl Sunday Ad Poll ranked the Bud Light Dalmation-Clydesdale-Rocky ad was America’s favorite, yet it did not even have the requisite web address at the end. Here are a few quick ideas of ways you could have capitalized on this success (call me for more – my freelance rates are very reasonable):
- Contest to name the Dalmatian and Clydesdale
- Start a rivalry between Bud and Bud Light (represented by the dog and horse) similar to the Bud Bowls of the 90s
- MySpace page wraps in spots (Dalmatian) and tough-guy horse stuff (Clydesdale)
- Facebook app that allows you to send a Bud Light to a friend
- Advertising tie-in with the new Rambo movie (I imagine there’s audience cross-over with Rocky)
- Jab back at the new Miller Lite spot featuring…Dalmatians and Clydesdales
- Create a site where you integrate this ad with other Bud Light Super Bowl ads (have the dog breathing fire, the horse flying, etc)
Budweiser, what do you pay these marketing guys? Hire me or any 15 year old and you’ll get more web marketing bang-for-your-buck.
Failure to Launch
Any marketer worth their snuff – nay, conscious in the last year or two – knows that search is an integral part of any campaign. So, why this MediaWeek report:
“70 percent of Super Bowl advertisers bought some paid search ads on either Google, Yahoo, MSN – up close to 20 percent versus last year. But just 6 percent of advertisers used their 30-second spots to direct viewers to the Web, and the vast majority (93 percent) failed to buy search ads for alternative terms that were related to their ads, such as their spokesperson’s names, slogans or taglines.”
MediaWeek is reporting on a Reprise Media scorecard that goes into more detail. I find it amazing that roughly 93 percent (of the 70 percent who bought ads) failed to think of these ads from the user’s perspective. Your uncle Jimmy had knocked back a six-pack and was in the grip of a food coma when he saw Naomi Campbell dancing with a bunch of lizards. When he stumbles to the computer, he is not going to search for SoBe Lifewater. He’s going to search for “hot model and dancing lizards.” Little surprise that SoBe also ranked as a “fumble” on Reprise Media’s scorecard.
I Get By With a Little Help From My…Oh, Forget It
Only Doritos had the cojones to use user generated content. Despite it being ranked near the bottom, I thought the ad was okay. Doritos had a nice intro to the commercial, but I would have loved to see it end with the singer crunching into a Dorito. Cheesy, perhaps, but so is the product. My message to Frito-Lay/PepsiCo (who own Doritos): Don’t be rash in firing your advertising company. It is better to work with someone willing to take the big risks and use the medium that appeals to your audience. These are the folks with the potential to blow people out of the water.
Also, not a single advertiser drove viewers to their MySpace or Facebook page – there was zero social networking involved. Believe me, this isn’t because people aren’t using Facebook anymore.
Fox did drive people to www.myspace.com/superbowlads though, which is a nice way of increasing the ads value with a measurable online component. Of course, for $2.7M, I’d be wanting a little something extra too.
No one is complaining about a game of two huge franchises in the largest media markets where one of the teams has the chance to have a perfect season (and finally shut up the ’72 Dolphins). But if you’re an advertiser and next year pits the Titans versus the Buccaneers (no offense guys, but come on), you might want to start thinking about your other options. Joe over at Junta42 has some great ideas for how to spend all that cash.
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