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…

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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)…

Marketing Whitepapers

May 16, 2008 at 6:20 am | Posted in Communication, General, Marketing, Online marketing | 2 Comments
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I read voraciously for this blog and for my day job. One of the best resources for marketing or blogging advice is white papers.

White papers give you a comprehensive view of one particular topic or problem/solution that you can read in the length of your morning commute. I have been blogging a lot on the ROI of social media lately, and Chris Brogan’s new white paper summed up a lot of my related thoughts to trust economics. (I only wish I’d read it before I had written those posts…ah well, I’ll cite it sometime in the future.)

Chris nails it in ten short pages. That’s useful to any busy blogger or marketer.

Copyblogger has a lot of great resources, including this white paper on viral marketing. Search the site for more. And I just found a great white paper on personal branding by My Creative Team.

What are some white papers that have helped you? Share the links in the comments below. Also, what are some white papers you would like to see? I’m thinking about writing a white paper in the next few weeks, so suggestions are welcome.

If/when I do write that white paper, I will give advance copies to my subscribers before the general public. Subscribe via the RSS readers listed to the right or by email so you don’t miss out.

I look forward to hearing about the white papers that have helped you the most!

Update: I released my first white paper and you can download it here: Writing Content in a Web 2.0 World

Do let me know what you think!

Social Technographics: Forrester And The ROI Of Social Media

May 13, 2008 at 6:04 am | Posted in Communication, Facebook, Forrester, General, Generation X, Generations, Marketing, MySpace, Net gens, Online marketing, Research, ROI, Second Life, Social Media, Tagging, Tweens, Usability, User generated content, Web 2.0 | 3 Comments
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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.

Continue Reading Social Technographics: Forrester And The ROI Of Social Media…

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…

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