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The Ghost of Web Advertising Future

What happens when a publisher fails to create quality advertising products designed for its unique content experience (native advertising, broadly defined)?

It concludes, correctly, that it won’t get much of a premium by having human beings sell its not-very-well targeted 300×250 banners. So it offloads its inventory to ad exchanges and networks. Since the exchanges and networks don’t deliver a great CPM for most impressions, the publisher is forced to add more banner placements just to maintain revenue-per-thousand-pageviews levels it achieved two years earlier. Not a pretty picture, no matter how you look at it. The money still isn’t great, and the user experience is horrifying.

Here’s a screenshot from the San Jose Merc website on February 7 snapped by John Battelle. From his post on Searchblog:

Six or more of [ads] in this screenshot, and three more below the fold. There’s a Verizon site wrapper (on either side of the page), an expandable top banner, and three medium rectangle units crammed in there. Not one of them is what you might call a ‘quality’ ad — at least by most standards. (Do you think Verizon is happy that their site takeover is overrun by social media buttons and competing with belly flab, diabetes, Frys’ Electronics and travel pitches?) If you bother to scroll down (who would?) there are three more pitches waiting for you there.

And check out the number of beacons and trackers on the right, in purple. That’s Ghostery, which I run on my browser to see who’s laying down data traps. Man, Merc, that’s a lot o’ data. Are you doing anything with it?

Look, I’ve built my career around ad-supported media, and I continue to believe that advertising (in some shape or form) will support digital publishing. But if there’s one thing you learn early — somewhere around your very first day in the business — advertising does not work if there aren’t consumers on the other end to look at the ads. So if you ad strategy erodes your audience, or merely burns out their eyeballs by way of toxic design, you’ll soon be left without a business at all.

Visual Storytelling for Brands in the Facebook, Pinterest, Insta-gallery Era

In November 1995 I had a job selling ad space for tech magazines. One afternoon the office fax machine scrolled out 12 pages worth of insertion orders from a software company I’d been pitching for two months, and I did a happy-dance in my cubicle. With those orders, the company had committed to running a full-page ad in every issue the magazine would publish in all of 1996. I called the client to confirm the mailing address for our traffic coordinator and the creative instructions — right-reading film, emulsion-side-down — and got the further good news that the ad creative was already on its way in a FedEx pouch. The ad creative. A single photo with ad copy that would serve as the campaign’s creative all year.

I don’t miss the inky mess I’d make of my hands when I had to change the cartridge on that fax machine. But they sure were simpler times in the world of advertising and publishing.

Back then the brands on the other end of those fax machines could afford to sink significant time and resources into the production of each creative unit. Hiring a renowned photographer, a model, a team of set designers, makeup artists, art directors and post-production editors might set them back $25,000 for a single photo for a single print ad. But given the enormous role played by that one photograph — it would likely anchor a $15-million national ad campaign across many magazines for months — the time and dollars invested in getting it exactly right could fairly be called a rounding error. Twenty-five thousand dollars in creative development divided by 15 million in media spend is less than two-tenths of a percentage point.

While the math still works for brands advertising in glossy fashion magazines, there is trouble in paradise. Or rather, paradise has moved to the Internet. If brands want to engage with consumers online (which, more and more, is where their consumers spend time) they need to compete with publishers and social media sites that refresh their bins of eye-candy every few minutes. By the time they’ve art directed, developed and shipped a piece of right-reading, emulsion-side-down film to a publisher, Gangnam Style has been replaced with parody videos of Gangnam Style.

The digital landscape changes fast, and pictures are a main catalyst. Netscape released the first commercially-available web browser in 1994 and fewer than 15 years later Flickr housed more than 6 billion photos — more than 450 times the number of photos held by the Library of Congress. In 2009 more than 2.5 billion camera-enabled devices were in the hands of would-be photogs and in the course of a year would go on to take ten percent of all photos ever taken by humans. Instagram, the photo-sharing apps for smartphones that Facebook bought earlier this year for $1 billion, measures its customer engagement in uploads-per-second; 60 uploads per second, back in the quaint old days of December 2011, pre-acquisition, and before comScore released data showing Instagram’s daily usage is now greater than Twitter’s. By early 2012 Facebook members were uploading to the site more than 300 million photos every single day.

This slurry of data signals “the end of the Kodak Era, where we took photos birthdays and vacations, and shared them only with a small group of friends,” says Bob Lisbonne, CEO of Luminate (my boss) and former SVP for Netscape’s browser group in 1990s. “We’ve now entered a phase in which visual communication is supplanting the written word — what some are calling the dawn of the Imagesphere.”


(Source: 1000 Memories Blog.)

But it’s not taking or uploading pictures that should worry marketers. It’s the fact that there are consumers on the other end of these photos — viewing them, engaging with them, and generally spending more time with images they see on Facebook, Tumblr or Pinterest than they used to spend reading glossy magazines that arrived on the newsstand once a month. comScore’s Mobile Metrix 2.0 survey says Facebook users are spending more than seven hours per month visiting the site by way of mobile phones alone. Om Malik, founder and editor in chief of GigaOM, asserts that photos are the fuel driving the mass migration to social media:

Malik writes, “Photos are the reason many of us continue to engage with Facebook. Facebook has tried many verbs to increase and maintain our engagement with the service — read, listen, watch. But in the end, it’s the photos that work wonders for the Menlo Park, Calif.-based social-networking giant.”

Research from a team at Harvard Business School supports Malik’s claim. A 2009 study finds that 70% of all activity inside social networks revolves around photos. Keep in mind, that was in 2009 — when Facebookers were uploading a mere 31 million photos a day, and My Space was still relevant enough to be included in a study of social-media sites.

These millions of new photos — or at least those shared by friends and organizations we choose to follow — are pushed to us each day in an unending, ever-updating stream of visual storytelling. We watch our friends’ kids grow up, in near real-time, and news stories unfold throughout the day as fresh photos replace those from hours or minutes before. Publishers, too, are responding to their readers’ growing appetite for image content with larger, high-res photography and the gallery-ification of stories as disparate as celebrity news, travel destinations and business analysis.

Roughly one-third of pixel real estate on the web is image content, according to the Wall Street Journal, and those images get old fast. In its first three days on the Internet, the average photo has attracted half the total views it will ever attract. If you look at content shared via social media platforms rather than the entire web, the half-life for content is measured in hours not days.


(Source: Bitly Blog.)

And there lies the rub for brands. The changing dynamic of media consumption has changed the rules of marketing in three fundamental respects.

One: “Professional grade” doesn’t get the mileage it once did.

Sure, the list of most-viewed clips on YouTube includes Justin Beiber music videos, but it also includes quirky independent interviews of people waiting in line for iPhones and home-movie sensations such as ‘Charlie Bit My Finger… Again.’ The same goes for photos. Consumer interest no longer tracks with traditional definitions of “photo quality.”

There was a time when all media was professional media, created and distributed by large publishing companies. It only made sense, then, for advertisers to polish their creative units to a professional, high-production-value shine. Good advertising should always seek to imitate the editorial content around it; ‘native advertising’ has been around long before the Internet. There’s mounting evidence, however, that recall rates for TV spots and display ads in magazines are declining, despite the professional expertise that goes into their creation. Nowadays relevance trumps production value.

Now that amateur photographers have gained access to distribution — Google might lead you to an independent photoblog, Instagram might introduce you to some great photos from an excellent hobbyist — consumers are dividing the world of photos into ‘interesting’ and ‘not interesting,’ not ‘professional’ and ‘amateur.’ Interesting no longer requires the talents of a professional.

Two: Attention Deficit Disorder has become a lifestyle choice.

A trend that’s probably as old as the publishing industry has achieved fever pitch: Content miniaturization. Articles get shorter and shorter, and readers still can’t get to the end of them. I mean, who has time to read the entire tweet anymore? Audience ratings seem to suggest that frequency and freshness of content are trumping quality and depth. In a world where tapping our thumbs on the Instagram icon on our iPhones unleashes an endless stream of photos taken in the last four hours, looking again at last month’s print ad for Prada strikes many modern consumers as boring.

Three: Consumption is giving way to interaction.

There’s something that’s even more popular than posting pictures: Liking them and commenting on them. It’s a sign that we define ourselves not only through our own pictures, but also through association with the pictures of others. It’s this instinct that explains the growth of Pinterest, the social network that rocketed to 10 million users faster than any social network before it. It’s not built on photo-sharing in the sense that Instagram or Facebook are (“Hey, check out my pictures”); it’s about photo-assembling (“I’ve collected these pictures so you understand who I am and what I care about”). Forty-one percent of us, says new research from Pew, find photos and videos online and re-post them on sites designed for sharing with others. It’s one of the most popular things we do on the Internet.

In order for brands to embrace these new platforms for photo mixing and mashing, they need to get comfortable with their images being separated from the carefully assembled context of yesterday’s print ad or the Spring catalog, and being extracted from the traditional models that protect ownership rights and pay out talent royalties. Your customers want to befriend you and play with you, but that game is going to be on their terms.

So what’s a brand to do?

The creative departments at traditional agencies simply can’t adapt to this new world, says John Battelle, founder of Federated Media (disclosure: I was his co-founder there) and the first managing editor of Wired Magazine. The old rhythm of branded storytelling — devise the Big Idea, take a month to convert it into an art piece of advertising, and then enlist the media department to implant it deep into the skulls of consumers through mass media — is losing its efficacy. Agencies will continue to find success producing professional-grade assets and distributing them around tent-pole events, but they’re ill-equipped for the in-between times, the 363 days a year that don’t feature the Super Bowl or the Oscars. The beefy muscles built up over years of pumping out thirty-second TV spots and full-page print ads aren’t well suited for the marathon running required by lasting social-media conversations. “Brands need to catch up to media,” he says, and they’re going to need some help.

“Most creative agencies don’t see themselves as ongoing, real time publishers — that’s the business of, well, publishers,” Battelle continued. “I predict the two will merge over time — agencies must become more like publishers, and publishers are going to have to learn how to service brands like agencies do.”

Federated Media says the solution is a distributed, crowdsourced model for branded content creation. It invites advertisers to tap the talents of “the world’s largest creative department,” the 30 million some-odd bloggers affiliated with FM, from the vast army of small WordPress publishers to large-reach sites such as Boing Boing or Notcot.


(Source: Tom Ryabo, featured on Intel’s My Life Scoop.)

Three years ago, David Veneski, Intel’s director of US media, took FM up on the offer for a program called My Life Scoop. While the site features periodic updates on products like Intel-powered Ultrabooks, the bulk of the content is created by a broad array of independent content producers who speak the native language of Intel’s customers — those young, affluent people who seek out cutting-edge tech gadgets to enhance their lives. The imagery that accompanies the site’s content is not highly produced. Instead the emphasis is on fit, tone and relevance — photos and videos collected, curated and presented to My Life Scoop readers at a fraction of the cost associated with a professional shoots. The content is on-message (‘Sponsors of Tomorrow’ and ‘Ultrabook’), it’s frequently refreshed and it’s inviting social amplification. Nearly 50,000 Twitterers are following the My Life Scoop feed, and 100,000 Facebook members have Liked it.

“It’s important to us that we provide an authentic and compelling brand story for our target audience,” says Veneski. “We find that visuals and imagery, both photos and video, alongside written content, offers a way of telling a story that is more interesting to the people we want to reach.”


(Source: GE’s Tumblr.)

General Electric has taken an even more stripped-down approach. On Tumblr they’ve created (with help from the Barbarian Group) a corporate site that is nothing but photos. You’ll only find text only where it’s used to caption or hashtag a photo. What’s initially surprising is that airplane engines, smart LED bulb testing facilities, and gardens decked out with PulseArc Multi-Vapor metal halide lamps are quite photogenic, especially when they’ve been dolled up with an Instagram filter. Without set designers, models or professional photographers, GE is telling its story with frequent, low-cost iPhone pictures. More importantly, GE fans are spreading this story to their networks, with comments and hashtags included.

And the ‘interactivity’ isn’t just something that occurs after the brand unleashes the content — GE uses Twitter to invite its social-media followers to pick the locations of future photos.


(Source: GE’s Twitter Account.)

Without breaking the bank or getting reckless with its brand, GE found a path to social-media relevance. The brand is leaning into the consumer acceptance of spontaneous, inexpensive photo storytelling, which isn’t just reducing production costs either. It’s giving GE a stream of highly sharable content nuggets to satisfy the short-attention-span types and the sharers.

In other words, they’re speaking our language — the one in which every missive is worth a thousand words.

(This article first appeared on iMediaConnection under the title Why Visual Storytelling is the Future of Digital.)

Federated Media’s CM Summit 2012: ChasNote Round Up

Battelle kicked off the annual Conversational Marketing Summit by interviewing Barry Diller, who delighted the CM Summit’s digital-evangelist crowd with remarks such as “magazines like Newsweek won’t survive another five years as print publications.” Then he summed up the divide between the big media companies and Silicon Valley as follows: “Talking to a TV network exec about tech is like talking to a plumber about bio-physics.” But tech adoption aside, he said, the cable and broadcast networks beat the pants off the internet when it comes to reliably delivering high-quality content, which is one of the chief reasons that advertisers love to spend on TV.

FM’s Joe Frydl presented the Law of Content on the Web: “The value of content on web is directly proportional to number of connections is starts or sustains.” Where digital marketing goes wrong, he said, is that — for all the targeting tools — it doesn’t understand context, and as a result it’s “tone deaf.”

LUMA Partners’s Terence Kawaja blinded the audience with a handful of new LUMAScapes, those logo mosaics that show the complicated ecosystem of startups, agencies, networks and exchanges all fighting for parts of the digital advertising dollar, and proposed a standard OS for online advertising. From Ki Mae Heussner’s post on GigaOM:

While the industry wouldn’t want to quash the innovation, he floated the idea of addressing what he called the ‘rationalization’ issue through standardization. Just like mobile technology has its Android and iOS platforms, Kawaja said, digital advertising could have its own operating system. “Many other industries have benefited greatly by having an operating system, a common platform upon which other companies can build their tools,” he said.

Everyone loves an easy-to-use platform, it seems. By 2015, he forecast, ads bought via real-time bidding platforms (RTB) will represent 25% of all online display spending.

“Too many brands still think writing a big check to Facebook means you have a social strategy,” quipped Mediavest digital chief Amanda Richmond. Meanwhile, on Tuesday, news broke that one of her agency’s biggest clients, GM, has canceled its $10 million ad contract with Facebook, three days before the social network’s IPO. The big-check-to-Facebook strategy isn’t working for GM, apparently. (To which I say, that’s preposterous.)

The industry loves data (“consumer insights are the new black,” she said), and the ability to precisely target consumers based on that data. But while we’ve become good at precision ad delivery, “we also need to know what story to tell them.” We’re falling short on the creative side. (Related: Digiday polls some industry folks, including me, to ruminate on the flaws and virtues of the banner ad.)

And then from Luminate’s Bob Lisbonne (my boss): Welcome to the Imagesphere. In the Kodak Era we took pictures on birthdays and vacations. Now, with a camera in nearly everyone’s pocket there is a whole new dynamic around image content. Ten percent of the photos every taken by humankind were taken in the past 12 months (1000Memories). That’s Phase I of the Kodak-to-Imagephere migration: A massive increase on photo creation. Phase II: New platforms for sharing those images (especially Facebook, Instagram and Tumblr) have turned photos into the universal language for communicating in social media. What’s next? Phase III, Bob argued, will turn those static images into interactive experiences. The popularity of Pinterest, from anonymity to the third largest social network in a few short months, is one example. Luminate’s image apps, which are used by more than 100 million consumers, are another.

Sarah Bernard, social media director for the White House, seemed to support Bob’s theory that images are where it’s at. When asked what she’s learned from using social media for direct democracy, she joked that the best way to engage the citizenry about tax code would be to sneak in some fiscal policy on a photoblog dedicated to Bo the dog.

A few more of my favorite soundbites:

@ComcastCares Speaks Out

Battelle interviews Frank Eliason, the voice of @ComcastCares at Searchblog.

@ComcastCares Sample2

@ComcastCares is a Twitter-based customer service channel that’s part listening beacon — Comcast tracks mentions of their brand by Twitter users — and part real-time help desk. As much as actually helping individuals improve their Comcast experiences, though, @ComcastCares has become an emissary of goodwill across the 5-plus-million member Twitterverse: Taking disgruntled (and influential, well-followed) Comcast customers, make them happy, and have that conversation out in the public, for all Twitter users to see.

“I’ve been following Frank’s work on Twitter for a while, it seemed he was always listening to what folks were saying, and when folks (inevitably) ranted about Comcast service, he jumped in, and almost always seemed to fix the problem. Then it happened to me, in October, my service started acting deeply flaky, and I complained about it.

“I quickly got a response, and when I moved to a new place last month, he helped again. Then just this weekend, my new Internet service started acting flaky again, and in ten minutes, Frank had assessed the problem and helped me fix it, calmly, intelligently, and in the grammar natural to social media….”

That last phrase, to me, is the most important. If your customers are expressing their discontent in social media environments, bid for their forgiveness in those same social media environments, using the language and grammar of social media natives.

To see @ComcastCares in action, here’s how it worked for Guy Kawasaki and his 32,000 followers.

To see what happened to a brand that opted not to engage with disgruntled customers in the social media settings where they made their complaints, check out the Motrin Moms dust up.

UPDATE: I Twittered Battelle’s interview with @ComcastCares:

ChasNote Twitters @ComcastCares

Six minutes later (on a Saturday afternoon), @ComcastCares Twittered me back:

@ComcastCares Twitters ChasNote

Chalk up another fan, @ComcastCares! Now I’m off to Twitter all about it.

Crowdsourced Notebooks: ASUS, Intel Launch WePC

WePC logo

Battelle, FM’s founder and CEO, announces the news at Searchblog:

“For the better part of a year, we at FM have been working on an innovative new project with Asus and Intel. Today it launched. WePC.com is an experiment in crowdsourcing an entirely new piece of hardware, and I’m very proud of the work we’ve done together.”

According Intel’s release:

“Consumers become product designers at WePC.com, a Web site launched today by Intel Corporation and ASUS. WePC.com is where consumers can collaborate with each other and with Intel and ASUS to design innovative new products. The plan is for the two companies to deliver to market what could be the world’s first community-designed PCs.”

Early reviews are coming in, starting with Mashable and Wise Startup Blog.

Congratulations to Kevin Huang, Wanting Yang, Mike Hoefflinger, Deborah Conrad, Mona Mameesh, David Dechant, John Cooney, Ryan Baker, Jeff Hsueh, Jonathan Schreiber, Jason Ratner, Josh Mattison, Sacha Lien, Liam Boylan and Josh Stivers. Who can identify, at this point, which of them work for ASUS, for Intel or for FM!

And keep your eyes peeled for the ChasNote Deluxe.

Adobe Sponsors “Previews” of Upcoming Books: Guy Kawasaki, Mark Frauenfelder and John Battelle

Guy Kawasaki, John Battelle and Mark Frauenfelder have published content (plus bonus videos and other features) from their upcoming books and are distributing them to readers of their blogs as Adobe Acrobat 9 PDF Portfolios. Adobe did not shape or influence the content itself, but it is paying to run ads on all three authors’ sites.

The free “sneak previews,” not surprisingly, are moving like hotcakes — 1600 downloads in a week — and with each download Adobe takes a new prospective customer on a tour of Acrobat 9.

Ads on each site (like this one, running on Guy’s site) not only promote the PDF preview, they also let fans re-post the ad unit on their own sites:

And since circulating these previews benefits the authors too — they are the book-equivalent of movie trailers — Adobe’s campaign is getting extra mileage beyond the paid sponsorship. Here’s a post by Battelle on Searchblog:

Battelle’s Book Trailer in Acrobat 9

(Credits: Steve Weeks and the Adobe Acrobat 9 marketing team; Yiming Roberts, Erica Milanese and Jenny Yumiba at Goodby Silverstein; and Liam Boylan, Nicole Cook, Stephanie Loleng and Lester Lee at FM.)

Ad Age on CrowdFire

From Ad Age:

“This weekend, as thousands of people gather and five dozen bands perform over three straight days at the Outside Lands Music & Arts Festival in San Francisco’s Golden Gate Park, tech and media entrepreneur John Battelle hopes to create a different kind of performance, a mash-up of the thousands of camera-phone pictures, hand-held digital-video recordings, blog posts and Twitter “tweets” generated at the event.”

CrowdFire Logo

FM and Microsoft Launch CrowdFire Music Site

Today, in partnership with Microsoft, FM launched music-oriented social media site CrowdFire.

CrowdFire

From MediaWeek:

“In conjunction with the launch CrowdFire, the companies have announced that several kiosks will be placed at the upcoming Outside Lands Music & Arts Festival in San Francisco, Calif. on Aug. 22-24, where attendees will be able to produce and upload their own video, audio and text accounts of the events, in what will serve as a mass test run for the new site. During the event, video screens will display a real time ‘mashup’ of the crowd-produced content.”

Mediaweek breaks Crowdfire news

Take 48 Hours Each Week, Let Your Brain Think

Last weekend, FM’s executive team tried an experiment: The three of us were not allowed to send any emails to our FM colleagues from 6pm Friday until 6pm Sunday. I didn’t expect much other than a time-shifting of our email problems, a postponement of our inevitable email bankruptcy. I was wrong. It turns out the emails the three of us initiate spawn email threads that multiply like virus cells in a warm petri dish. If we shut up for two days a week, everybody else can dial back, too. And I found that my brain worked better this past week — rested, refreshed and more nimble than usual — after a weekend offline.

More from Battelle.

I wonder what happens if you let your brain have 216 offline hours?? I’m headed off for a wifi-free camping trip with the family. I’ll let you know in a week.

AMEX Open Blog Wins Praise In Multiple Languages

I hope the folks at Cococu are saying nice things!

Marketing Shift weighs in, too:

“…companies are looking for ways to aggregate communities even if it’s not directly tied to their core business. Chris Brogan points out that American Express is doing just that with its OPEN Forum, which aggregates blog and business information in one place and encourages conversation in a sponsored area with the hopes of subtly marketing to people who have an interest in business information (e.g. potential American Express users). When you think about it, the concept is a no-brainer. We trust people more when we don’t feel like they are selling us on something. It’s why we hate ads — and marketing.”

Steven Lewis at Inside the Box, while not exactly speaking a different language, adds his support from Australia.

And if financial jargon qualifies as a foreign language, we can count NetBanker:

“American Express’s OpenForum: As the name suggests, it’s a business forum and resource directory, not unlike Bank of America’s…. American Express has added posts from several prominent bloggers such as John Battelle’s Searchblog and Anita Campbell’s Small Biz Trends, to keep the site fresh. The site has 5,400 members and monthly traffic of about 11,000 unique visitors, up three-fold from a year ago.”

Goes to show you: If your marketing projects are great media with quality content and authentic conversation, not only will you engage your customers more deeply, you’ll benefit from social-media amplification as those customers spread the word across the web.