Friday, October 06, 2006

The Value of Social Media Sites

Knowledge @ Wharton has been looking at the value of services like MySpace..


Less than three years after emerging from nowhere, the hot social networking website MySpace is on pace to be worth a whopping $15 billion in just three more years. Or is it?

Is the much smaller Facebook, run by a 22-year-old, really worth the $900 million or more Yahoo is reported to have offered for it? Maybe. Or maybe this is Dot-Com Bubble, Part II, with MySpace, Facebook, YouTube and the other new Internet phenoms destined for oblivion when the fad fades.

"What makes this hard is that these companies seem to be so many years away from the kind of earnings that the valuation numbers are forecasting for them," says Andrew Metrick, finance professor at Wharton. The $15 billion MySpace figure "would imply that a lot more people will be on MySpace than are currently on it."


Perhaps the problem is that they are looking at an old fashioned marketing and advertising models.

Thinking more about the nexus of relationships that form round bloggers would be a better model. Think in terms of society rather than customers.


Skype TV

B2Day reveals:


The Skype founders are at it again. This time they are creating peer-to-peer software, dubbed the Venice Project, to stream TV shows over the Internet (see earlier post). Skype founder Janus Fris tells Om:

Like Skype, The Venice Project is simple - you download and you get free television. . . . we are inviting more people to our beta program. It is near television quality, and it needs about one megabit per second. We are building an ad-based system, and it is close to the television model. We will do revenue share with the content providers. With our system, people can be targeted with the right kind of ads. We are respecting the copyrights.

TVoIP is an interesting idea as a channel for communication.

Thursday, October 05, 2006

Flirt of buy

Nice way of putting it... Seth Godin points out

Amazon users visit to buy stuff, and MySpace users visit to flirt.

Last time I checked, flirting was a fairly unprofitable activity.

There's a long list of high-traffic sites (beginning with theglobe.com and extending to hotmail and many others) that couldn't monetize. They were stuck because the bait that got them the traffic had no room for a reasonable hook. You could use a TV like model and interrupt with irrelevant ads, but it doesn't work so well.

All a long, long way to say something simple:
Whatever your website, I think you want better traffic, not more traffic.


But.... If you want to flirt don't go to Amazon unless you want to buy roses to help with the flirting. The pay off is better flirting and that is at the core of monetising social media.

I can help you flirt better.

Benfits of blogging

Andy Lark has been looking at benefits of blogging and adds these elements:

Some of the other areas we also see benefits in are:
  1. Reduced cost of customer acquisition: customers are looking at the blog for education and insight reducing the requirement for hard materials and ongoing dialogue with sales engineers. In short, blogs reduce the sales cycle. We can measure this in hours of people time taken back.
  2. Reduced SEO costs: By participating in other blogs (especially those of pundits and analysts) we see more inbound traffic against key topic areas reducing our dependency on paid search to drive traffic. We've seen this go as high as 25%.
  3. Participation reduces research costs: Closed blog communities are a great source of insight for polling and thought taking. They reduce the cost of insight.

Go on... make your own show

BloomBox is a web application that makes it easy for PR people to create movie and video contnet based arround user generated content.

BloomBox was launched in September 2006. The first BloomBox-powered site is Islandoo. For Islandoo, BloomBox has been customised to create a user generated audition site where the community's collective wisdom is used to decide who gets picked.

Since it started marketing they have been surprised by the new uses that people have seen for the software. Sports clubs are considering using BloomBox to create a community of fans. Large professional services firms are considering using BloomBox as a knowledge management system. BloomBox would be great for these applications, and probably many more!

How students get thier own back

“Whoa… dude… Code of Hammurabi. I’ve seen this in … I’ve seen this in a British Museum.” If only these words came from someone goofing off in a high school class. Instead, they were uttered by a lecturer, John Hall, during a class he gave in September to more than 1,000 students taking a business course at the University of Florida.

Within weeks, highlights from the lecture were uploaded onto numerous Web sites, including Break.com, where the video is labeled “Stoned Professor,” and YouTube. And shortly after that, the university placed Hall on paid administrative leave.



Thanks Guys.

Four daily editorial deadlines at The Telegraph

The Telegraph is planning to use new editorial touchpoints to drive multi-media advertising.

Annelies van den Belt, new media director of the Telegraph Group, told the Association of Online Publishers' conference in London, that touchpoints - four daily editorial deadlines focusing on delivering news to different platforms and audiences developed as part of the Telegraph's integrated newsroom project - are key to new advertising plans.


Source Journalism.co.uk

Affiliate marketing worth £2 billion in UK

The UK Affiliate Marketing sector, which has more than tripled in size since 2004, has made huge strides since it was first used by marketers ten years ago says e-consultancy.

Online businesses increasingly see this as an invaluable way of generating extra sales by using networks of websites as a virtual sales force to broaden their reach.

More about affiliate marketing



200 years from coffee shop to cyberspace

The Times has plans to open up parts of its 200-year-old archive, Times Media's digital publisher Zach Leonard told the Association of Online Publishers (AOP) conference, in London, yesterday.

Mr Leonard said the Times was looking at ways to make use of the newspaper's archive and turn it into a revenue steam.

He later told Journalism.co.uk that Timesonline would first look to experiment with subscription-based offerings to the business community before turning its attention to the consumer market.

Evaluation conference

So, Evaluation is a PR thing... Don't you believe it.

The UK Evaluation Society and the European Evaluation Society are collaborating for the first time on the organisation of a major international conference to be held in London on 4-6 October 2006.

The conference invites evaluators, commissioners of evaluation and users to reconsider the role of evaluation in democracy, what it contributes to social and public policy and how it reflects and shapes cultures and institutions. The conference is expected to be the largest evaluation conference ever held in Europe and has already attracted widespread interest from around the world.

Ring tones are to pirate what storks are to frogs

"The ringtone business in the UK has stalled and is now in decline. You can put it down to price, piracy and the Crazy Frog effect," said Rob Wells, director of the new media division at Universal Music UK, home of artists including Eminem and U2.

Guardian report.

Scream marketing gets one in eye

Within the web advertising world, interruptive formats, including pop-ups, dropped by 9% from a year ago and are now worth only 0.7% of all online advertising spending, reports the Guardian.

Guy Phillipson, the IAB's chief executive, said advertisers were realising that more tailored campaigns were the way forward and were moving away from formats such as pop-ups that mirrored the old-fashioned interruptive nature of TV and radio advertising.


Well... what a shock!


Or, take your tank off my screen.


This is good news for Public Relations when it seeks to engage with online consituents. Oh yes and were did the money for pop-ups go? Is this a budget that PR practitioners picked up?

Online advertsing still on the up

The Guardian says Online advertising spending soared more than 40% to just shy of £1bn in the first half of this year, putting it on track to overtake press advertising by the end of 2006, according to research by the online marketing trade body the Internet Advertising Bureau (IAB). The figures echo reports that indicate the online sector is shrugging off a tough overall advertising market, which has hit ITV and larger radio stations in recent months.

Expats get own web site

The Guardian has launched a website, GuardianAbroad.co.uk, aimed at expatriates.

The site will mix stories with practical information about living abroad and is linked with Guardian Weekly, the international weekly print edition of the Guardian.

Publicis new executive chairman

Olivier Fleurot, the former chief executive of the Financial Times Group, has joined ad agency Publicis as executive chairman.

With a shareholding in Feud Communications to entertain the Board with too.

Gamers rock round the world

This attracted my attention from NMK.

This is a form of Second Life but in a more controlled environment. It is a channel for communication which is very 'sticky'. Gamers spend hours in this space and is an opportunity for engaging audiences.


With MMORPGs (massively mulltiplayer online role playing games) rapidly gaining traction in the media world, will we soon be talking about the latest "virtual" reality shows instead of Big Brother?

In turn, this event will ask if UK creative suppliers, agencies and brands are ready to grasp emerging opportunities in this new media space.

World of Warcraft is one of the most played games in North America, and the most played American MMORPG, with a total of over 6 million customers worldwide. As of the first half of 2005, Lineage II counted over 2.25 million subscribers worldwide, with servers in Japan, China, North America, and lastly, Europe. The free Korean MapleStory features purchasable game "enhancements" and claims to have more than 30 million players in all of its many versions, with the majority of them from East Asia.

Powerpoint for the Social Media set

Niall Cook tells us he has been playing with SlideShare after reading Ross Mayfield's comments. Think YouTube but with PowerPoint presentations rather than videos (most PPTs are arguably more amateur).

"For corporate bloggers like me, it promises to be a great tool for embedding presentations into blog posts."

Google mystery

I noted this in my RSS reader from Read/Write web. And the page has been taken down too:

"I've been tipped off about some mysterious Google screenshots - including what appears to be a mock-up for a Google Web Office product, called Google RS. The screenshots were at this location, but have since been taken down. Luckily I saved them just before that happened ;-) Here they are:


GoogleRSMockup.png


NewHomepageMockup.png.jpg


GoogleHomepageMockup.png


GooglesearchMockup.png


GooglesearchMockup2.png

What do these screenshots mean? Perhaps just the noodling of a Google freelance designer. But that Google RS one seems significant. The WebThoughts blog was the first to post about this and his comments about Google RS are great:

"So, it seems as if Google will incorporate Gmail, Calendar, PicasaWeb, Blogger, Writely, Spreadsheet and Notebook to this new service.

I guess that this also includes GDrive (leaked as “Platypus”), and a combined web-interface. I guess that Writely and PicasaWeb will get different user interfaces, Writely will be orientated on Spreadsheets (which indeed looks better IMO).

Another part of the deal could be Google Reader, which has recently been updated to the unified Google interface."

More on this as it develops..."

What is this blog thing anyway?

Philip Young has an interesting post.

Like a few others, I have been trying to work out what a blog is. Specifically, is Mediations a publication that is on general release and should be regarded in the same way as a newspaper, magazine or book? Or is it a place over which I have some control and where I can expect some personal rights? My feeling is that very few bloggers who I read have resolved this dilemma.

I have a thought that may help.

If one considers blogging as a social media, we can think of the channel for communication as facilitator for use by groups of people who form the nexus of a number of relationships with the blogger at its core. If you like, the community that is connected through the blogger is a small hamlet. which has a tight knit community but which is part of a wider community (parish?) and thence to the breadth and depth of the network offering a connectivity, a penumbra of links. Such a hamlet is to an extent dependant on the channel but can use other channels (Usenet, email, phone etc) to maintain its existence.

Thus a blogger is the nexus surrounded by close and progressively remoter connections.

The nexus forms when its Hamlet has values in common and at its core these values (interests, ideas, passions) are very akin.

Thus to a definition of a blogger being the nexus of values at the core of a community of other people (who will be, predominantly) connected through blogging channels.

Where there is commonality of values across a wide range of individuals, they might be considered to be a public, with common values they share passionately (e.g. the notion of professional public relations). Thus, from time to time they coalesce, because they have common cause (many shared values). Such a coalition can, and probably would be, within the 'hamlet' which is the nexus around the blogger.

This has consequences for Public Relations.

It means that in thinking about building relationships, the practitioner will be addressing a wide number of individuals sharing values with other individuals. Public Relations is therefore about values that can be shared with individuals each of whom have, to an extent the same or similar values.

Endorsing values, sharing values and empathetically adding values is the means by which the practitioner can engage with bloggers and, equally how bloggers can engage with organisations.

This could be an explanation the viral effect of some notions. It is more than word of mouth, it is the sharing of values. Some, as we know can be very effective because they can be driven by emotional values. Shared emotion is very powerful indeed.

Of course, such an explanation may also help us understand why YouTube, and Flicker and del.icio.us are important because they help explicate values.

All good Relationship Value Model stuff.

Better Google serach for the blind

This is an upgrade from Goole for easier searching for the visually impaired.