Okay, so this was just a test using Instapaper (which I love love love) to post interesting articles to this Posterous site (which I also love love love), but it does not seem to work. Which I do not love at all. Well, it puts the link to the story, but that's not very interesting. I want all the data in there. Instapaper will do this on Tumblr, but I think Posterous is a better solution.
http://www.wired.com/epicenter/2010/11/the-path-to-social-network-tranquility-is-lined-by-50-friends/
There are all these buckets we try to sort video consumption into that don't make any sense anymore. Forward-looking financial projections are practically meaningless given the jarring speed by which new electronic devices are flooding the consumer marketplace. Partnerships, formed to target television, seem to be forged overnight. For instance Google, putting its hooks inside the manufacturing arm of Sony, today has a strong partner helping get Google Chrome into the living room.
I have to scratch my head as I sit in front of my 27" iMac when I hear industry analysts say consumers don't want to use the Internet on TV. My iMac, for all practical purposes, is a TV! One report stated that consumers don't find value in having their televisions connected to the Internet. This might be true today, but devices first need to get sold and installed prior to consumers getting hooked on an application market. Google, in my opinion, is going to invest heavily in getting the Chrome browser onto nearly every television set, even without the cooperation of the broadcast networks.
Typically, when the topic of Internet disruption comes up, there is a lot of doom and gloom around the notion that local broadcasters are going to fall first. There is no denying that the future will be a device- and screen-centric world all pulling data from a cloud. But the definition of a cloud, to me, could be anything -- it isn't limited to the Internet. It could be a cable company's data center, Internet provider, spectrum, or a DBS satellite downlink. Let's not fool ourselves, consumers are sophisticated enough now that they will seek out devices for specific purposes tied to any appropriate cloud.
Google TV's roadblock by ABC, CBS, and NBC (who all encrypted their content) makes for great gamesmanship. We all know that devices, including Google TV, are here to support some level of cloud viewership. Those in doubt should visit Best Buy and walk the rows of Internet-enabled devices. The big battles around content ownership across all platforms finally seem to be upon us. For many of the interactive television providers this might be an important catalyst to ignite a long-simmering market.
As a byproduct of cloud computing, the long-term value, and purpose, of software has changed dramatically these past couple of years. Today you can get many programs for free or at low cost on the Internet. Consumers are able to bookmark into their browser bar (like Google Chrome) all sorts of free programs -- from Mint.com, Google Apps, Xfinity, Netflix, RunKeeper, to Linked In. These programs, many replacing Microsoft products, have become little silos of information in themselves, with the user's attention focused on a very narrow output per application.
I imagine the financial strength of Google AdWords will be weakened by all this cloud-based software over time. These applications probably find little financial reward from adding text ads into their user interfaces. As the application market continues to splinter this can't be good for Google's bread and butter search business. This is why I think Google TV is so important, as it provides Google with access to an untapped major revenue source. No surprise, then, that Nielsen Media Research plans to bring GRPs to Internet measurement.
When I think about the biggest challenge facing the TV industry I think about a scene from "Raiders of the Lost Ark." It's where Harrison Ford tries to steal the Golden Idol by swapping it with that bag of sand on that booby-trapped pillar. It's as if that bag of sand represents the technical process of upgrading the "cash registers" (inside the broadcast origination centers) that keep commercial insertions happening and advertiser invoices humming along.
The entrenched positions of these billing systems -- which should be upgraded for interactive (lean- forward) technologies -- for me are at the crux of why the industry has so much apprehension moving beyond pure audience ratings. With billings rising across the board for television, "if ain't broke, don't fix it" might be the logical response to delaying critical innovation during this lucrative election season.
Google TV, however, needs television content for its future more than TV needs Google. This idea that there is some difference between Internet and multichannel providers is dated. The flare-up among Google and the major three networks proves the battle for content just got real. Everything is up for grabs. May the best user interface win. Those broadcasters (and cablers) that swallow the bitter pill, while times are good, and figure out how to upgrade their billing systems, will be positioned correctly as TV turns toward a "lean forward" mode.
It seems like only yesterday Google was constantly reminding everyone who would listen that Google was NOT a media company. My guess is that Google wouldn't be so adamant now, given the release of GoogleTV. But even GoogleTV doesn't automatically bucket Google with media companies, at least not as people have known media companies to date.
In a recent Wired.com article, "Behold, the Next Media Titans: Apple, Google, Facebook, Amazon," Fred Vogelstein makes the argument that not only are Apple, Google, Facebook and Amazon media companies (by the way, I would add Twitter), but that their existence will forever change the media landscape. No argument here on the titanic and permanent shifts occurring in the media landscape -- but the question is, what will it look like after the shift?
Historically media companies have either been in the business of content development (studios), content ownership and programming (networks) or ownership of the actual pipes and devices by which people get content (cable companies, movie theater chains). Of course many media companies are part of more than one stage of the business. But when I look at the value chain, I honestly cannot assign a position to the companies Fred lists. This doesn't mean they are not media companies, it simply means we are seeing an entirely new link in the many-hundreds-of-billions-of-dollars value chain being created. Which of course begs the question: will the new link replace or break one of the old ones? Again, when you think about it, while there could be a reduction in role of some players, the new companies do not totally displace the old.
To be fair, Amazon and Apple (for now, Apple has a lot of potential to get into Facebook and Google's world), belong in a different class of new media company than Google and Facebook do. Amazon and Apple are doing their best to replace how consumers purchase media, while Google and Facebook excel at how consumers discover and share content with each other. Also, Facebook and Google (by way of YouTube) are actually generating a significant amount of content creation but, unlike the value chain above, the owners of this content are the users. And so yet another monkey wrench is thrown into our ability to neatly define and assign roles and revenue for tomorrow's media companies.
So where do Facebook and the others fit in the media landscape? My personal opinion is that they will be the interface through which people create, discover, consume and purchase media. In short they are all providing a new Media OS layer (and don't think Microsoft, through xBox, won't also have a huge role here). And thank God, because scrolling through list views of cable programming on the set-top box is just awful. Being the consumers' media operating system will give all of these companies a significant amount of leverage in participating in the economics of the media ecosystem, including allowing the leaders to redefine the form and function of advertising.
The Wall Street Journal recently reported that "in the first six months of 2010, advertisers spent $627 million on video ads," a significant increase from the year-ago period. This statistic makes it clear that online video's combination of sight, sound and motion is an especially effective one for advertisers, something that comes as no surprise to broadcast veterans. The addition of interactive capabilities further enhances the user experience and increases advertiser benefit.
What's also clear from this figure is that marketers, agencies, publishers, technology enablers, industry groups and networks have done a tremendous job of creating and nurturing a growing segment of advertising that delivers value at virtually unprecedented scale. But in order to maintain this pace of growth, each of the stakeholders need to rally around maintaining advertiser value. For the ecosystem to thrive, all parties need to ask themselves: "Am I delivering on the marketer's goals?"
1. Creative counts. I've been evangelizing for years the benefits of tailoring creative to an online audience, as opposed to repurposing a TV :30. Executing interactive pre-roll at scale has even been shown to generate a lift in in-store sales. Today, companies are offering users more choice about the video ads they want to see, but the underlying creative still needs to be compelling enough to drive purchase behavior.
2. Placement is everything. The surest way to reduce marketer confidence in online video is to burn them by not delivering value. There are varying degrees of video ad quality, and pros and cons to each, but we should all agree that it's always unacceptable to run a video ad in a placement where it's unlikely anyone will ever see it. Low-quality placements are increasingly being optimized out of buys anyhow, as marketers come to rely on ad verification tools and command broader reporting and research suites from sellers.
3. Enable data-driven buying. Video has reached the scale where, like display, buying decisions can be based upon rich pools of data available from multiple sources, including the marketers themselves. Data targeting better positions marketers to achieve their campaign goals, while empowering sellers through a strong differentiator. But it's just as important to thoroughly analyze post-campaign analytics as it is to target the right segments in the first place. For instance, a low click-through rate may not in fact have any bearing on a campaign's actual success metrics. Sellers are well advised to understand their marketers' goals prior even to completing the RFP response, to ensure that the right data sets are used in targeting and optimization, followed by a results analysis that adds value to both sides of the discussion.
It is in the entire online video ecosystem's best interest to clearly differentiate video offerings and avoid massive commoditization. Constantly innovating around ad units and creative, running campaigns in responsible placements, and enabling data to drive planning and analysis will help insure that the space continues to grow.
So, my tray table on US Air has this hideous ad. Some questions:
1. Was my flight cheaper because of this?Been thinking about what to write next and have too many ideas, so I'll just put them all out here, and see if anyone is reading and cares:
Anybody care to read any of these? Give me a top 3. Or anyone want to talk about any thing else? I'm all ears.