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Leveraging Consumer Magazine Brands in the Digital Age

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Presentatie van John Battelle (Federated Media Publishing) over search, web 2.0 en blogs in een intent-driven world.

Presentatie van John Battelle (Federated Media Publishing) over search, web 2.0 en blogs in een intent-driven world.

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  • 1.  
  • 2. John Battelle Founder & Chairman Federated Media Publishing
  • 3. John Battelle Federated Media Publishing MPA December 2005 SEARCH, WEB 2.0, BLOGS, AND ALL THAT: THE ROLE OF MAGAZINES IN AN INTENT-DRIVEN WORLD
  • 4. WHO IS THIS GUY?
  • 5. Agenda….
    • What is a publication, really?
    • Where are we now, how did we get here?
    • Web 1.0: What we did right, what we did wrong
    • Web 2.0: The opportunity, the threat
    • The Magazine Assets: Well Positioned to Thrive
    • The Role of Search
    • Why The Magazine is the model
  • 6. What Defines a Publication?
    • A conversation between three parties: Author, Audience, and Advertiser; facilitated by a fourth: the Publisher
    • Each has different roles, but the best pubs foster and nurture a conversation on a subject for which all parties share a passion
    • The best have marketers as participants, they are readers and advertisers, endemic
    • The best are driven by great voices and point of view, and are leaders/arbiters in their field
    Author Marketer Audience Publisher
  • 7. What Does NOT Define a Publication?
    • The medium in which it is delivered
      • Magazines should not be equated with print
      • Magazines are bigger than one medium
      • Until the Web 2.0, we just didn’t have a better medium
    • Now we do….
  • 8. What’s Different Now?
    • Web 1.0 (1994-2001)
      • Was about “getting on the web”
      • A lot of shovelware - literally and figuratively
      • No real business model traction, advertising failed to reach critical mass
    • Web 2.0 (2002 on….)
      • Building web native magazines
      • Focusing on the true mission of your publication
      • Real business models and vastly different economic realities….
  • 9. A Brief Web 2.0 Primer
    • Version 1.0 of the Internet: Long on vision, short on execution, shorter on profits; market & tech immature
    • Version 2.0: Long on execution, long on profits, even longer on vision; platform is maturing
  • 10. THE RISE OF WEB 2.0
    • Mid-Late 90s - we thought it was a battle for the window into computing : Netscape v. MSFT.
    • Instead, it became about the content and services , not the window
    • Web itself became a robust development platform
    • Sites also became platforms: Amazon, Google, Yahoo!, eBay, etc
    • And entrepreneurs began to build on the platforms, creating new approaches to established markets - like media….
  • 11. Web 2.0 Principles: THE WEB IS A PLATFORM
    • Building on the lessons of the 1990s
    • Open source, cheap processing/storage/bandwidth opens new economic realities
    • Ten years in: Net hit critical mass of usage
    • Platform sites embrace the open: data, access, portability
    • Best sites are search driven
      • Join the “Point to Economy”
  • 12. Web 2.0 Principles: THE ARCHITECTURE OF PARTICIPATION
    • Leverage user-generated content & the force of many to create advantage and build network effects
    • The remix culture: the best sites are mixes of other sites’ APIs, data feeds: Prosumer rising
    Linux
  • 13. Web 2.0 Principles: INNOVATION IN ASSEMBLY
    • Aggregate, manage, analyze complexity
    • The essence of the “content business”
    • Dell, Spikesource, SimplestShop.com, Topix, MyYahoo, Technorati/Feedster
  • 14. Web 2.0 Principles: LIGHTWEIGHT BUSINESS MODELS
    • The Web as Platform plus AoP = new generation of “lightweight” competitors
      • Google/Yahoo News & Craigslist/Blogs v. Newspapers
      • Tivo/NetFlix/VideoIP v. Comcast/cable
      • Federated Media v. Primedia
  • 15. Web 2.0 Principles: THE POWER OF THE TAIL
    • The force of many: 1 million sites with 1000 readers is far larger than 100 sites with a million readers
      • Adsense/AdCenter/YPN
      • 100,000 bands selling 5000 albums, not 50 bands selling 1 million albums
      • Blogging is this dis/re aggregation phenom for web publishing
  • 16. Web 2.0 Principles: SEARCH RULES
    • The driver of Web 2.0 businesses
    • Search heralds a new “Web OS”
    • Our culture’s point of inquiry, the spade with which we turn the web’s soil, the artifact of a new culture
    • A new reality for all forms of traditional business
    • Barely begun to realize its impact…
  • 17. HERE’S WHY SEARCH RULES Piper Jaffray
  • 18. THE PAID SEARCH MARKET
    • Piper: 5x growth in 5 years
    • 59% of money is coming from other media budgets
    • On average 12-15% of all clicks are paid clicks
    • Average CPC on Google: 54 cents, avg rev/query = 9 cents
    • Latency: 25% of those who click on paid CE search, buy, but 92% of them buy offline
  • 19. Gap Between Net Ad Spend and Usage Morgan Stanley
  • 20. NEW MEDIA WAS NOT THAT NEW
    • MSM model: Publisher hires content creators, attaches advertising to content, subscription follows
    • (First) new media model: Publisher hires content creators, attaches advertising to content, hopes subscription follows
    • MSM model: Create a “thing” (magazine, newspaper, TV show), fight tooth and nail to build and defend an audience. Spend millions.
    • (First) new media model:Create a “thing” (“website”), fight tooth and nail to build and defend an audience. Spend millions.
    • Is this “site-based”/packaged goods model really new?
    • Search gave us the answer…
  • 21. MARKETING IN POST SEARCH WORLD: INTENT BEFORE CONTENT
    • Before Search: Content as proxy for audience
    • After Search: Audience declares intent, then content finds audience
    • In the Web 2.0 publishing world, intent drives content…
    • …and content disaggregates
    • As intent became a proxy for audience, paid search took off…
  • 22. DISRUPTING FORCES
    • … and Publishers freaked out
    • Ad models shifting to intent
      • Marketing becomes a sales channel
      • Google et al seem to be dis-intermediating traditional media models
    • Search, RSS, and Blogging are redefining content models
    • The rise of the “point to” economy
      • If you are not in the conversation, you’re not in the Index…
    • Is this going too far? What about branding?
    “ Corporate marketing represents the last bastion of unaccountable spending in corporate America.” - Google CEO Eric Schmidt
  • 23.
    • Save our old model!
    • Search undermines content-attached models
      • Ad can be sold at point of intent, my content is threatened
      • Regard search companies with suspicion
    • The Internet is stealing my content
      • Forbid deep linking, raise the registration drawbridge…
      • Keep your content in safe containers…
      • And if that doesn’t work…sue your customers!
    REACTION OF MAINSTREAM MEDIA BUSINESS
      • “ Google is a brand killer…if you must sleep with the enemy, make sure you use protection and make sure you get paid".
      • - Publisher of Economist.com.
  • 24.
    • Authoritative content, deep archives
    • Talented authors and editors
    • Community driven conversations in focused areas
    • Strong advertiser relationships
    • All perfect for search!
    • So join the point to economy and trust your content will drive value to your door online…
    • And branding it NOT dead, it’s just forced to justify its target more precisely…
    • … which is precisely what great online publications can do
    BUT MAGAZINES ARE PERFECT FOR A SEARCH DRIVEN WORLD!
  • 25.
    • Print ain’t dead, but online is forcing justification of its economic model
    • For some print based models, it’s all over save the yelling
      • Many Local papers, much of the B2B market
    • For others, it means shifting the print product
      • National papers, service based magazines, context specific pubs
    • For still others, print remains the best medium
      • Fashion, shelter, travel
    • Here’s a medium term problem to solve: The insanely wasteful magazine manufacturing and distribution infrastructure…
    • Long term: It may not matter. When paper-quality readers hit the sub $100 price point….
    • It’s all magazines, baby. But now with online goodness!
    ( hey …is he saying print is dead?)
  • 26. CONTENT DRIVEN, NOT DISTRIBUTION DRIVEN
    • We must evolve old models while embracing new realities
    • Media pre web:
      • Huge capital and customer acquisition/retention costs
      • Huge advertising revenues
      • Moderate content creation costs
      • Distribution lock out driven
      • Huge profits
    • Media post web:
      • Limited capital and customer acquisition/retention costs
      • Moderate advertising revenues
      • Moderate content creation costs
      • No distribution lock out: Content driven
      • Healthy but distributed profits…
  • 27. WEB 2.0 PUBLISHING MODELS (it really is different online…)
      • The Disaggregation of Publisher role
        • Ad Networks erode sales relationships
        • Professional Weblogs advance author role
          • A web blog is a Web 2 publication: Lightweight model, innovates in assembly, lives down tail
          • Good blogger is a good editor/filter, conversational, leader in community, influencer
        • Hybrid Magazines rethink traditional approaches
          • How might you start a national magazine when you don’t have $5-10 million in risk capital?
          • When your audience is mostly online?
      • In Web 1.0, the publisher played the dominant role….
  • 28. …And the Author Was Held Apart
    • Publisher retains authors to gather Audience (content-driven)
    • Marketer goes through Publisher to reach Audience
    • Ideally, Audience then begins conversation with Marketer
    • But, the conversation is limited and the author is marginalized
    • And leads to publishers being driven more by the marketer, and less by the audience
    Publisher Marketer Audience Authors
  • 29. The Web 2.0 Publishing Model
    • …But in Web 2.0, the publisher plays a facilitator’s role
    • And the author is a more equal conversant
    • (and often, the author and the audience are one and the same….)
    Author Marketer Audience Publisher
  • 30. Example: Make
    • Idea: Popular Mechanics for the Digital Life
    • Problem: Publisher was not a magazine house
    • Solution: Leverage Book channel/contacts, viral marketing/blogs, “Makers,” Amazon
    • Results: 70,000 circ. In first year with no DM, at a $50 price point - 7x expectations
    • Profitable in year one
    • 500K/mo online readers
    • Extremely efficient cost structure
  • 31. Example: FM
    • Blogs are difficult to buy at scale
    • Bundle an ecology of sites together - 10-20 per category, each site vetted for quality
    • Aggregate audience in the millions, views in the tens of millions
    • Focus on appropriate advertising, messaging for each site
    • Reporting and analysis for both Marketer and Author, meta-site/feed for Audience and BD
    • Authors federate under FM, yet each owns/operates their site: FM is like label or book imprint
    • Marketers gain efficient and appropriate access to robust, passionate conversations
    • The model scales from sector to sector without traditional publisher constraints
    Authors Audience Marketer
  • 32. So What’s Your Advice, BlogMan?
    • Train your editors/writers/authors to be web native, and hire natives - focus your talent and investment on the web
    • Online, media is driven more by conversation, less by packages/interruption/show
    • Content should invite conversation, not demand attention
    • Employ your customers in creating new products, content
    • Criticism is OK, in fact, how you respond to it can build your brand
    • Media is no longer ruled by distributors, it’s ruled by attention. However, there are now distributors of attention, so…
    • Search rules, but not just paid search: Search is how content - and audience - is found.
      • Join the point to economy.
    • Your brand is your editors/authors/audience, not the print product.
      • Online, media is performance art, not packaged goods
  • 33. So What’s Your Advice, BlogMan?
    • A magazine is not a form factor, it is a conversation
    • Join it via the web!
    • If you have the means…invest in properties that have critical mass, or build them
    • Find the best authors/audiences online, and cultivate them…
    • Magazines are not dead - they’re moving into a great new phase!
  • 34. THANK YOU! [email_address] John Battelle Federated Media Publishing MPA December 2005 SEARCH, WEB 2.0, BLOGS, AND ALL THAT: THE ROLE OF MAGAZINES IN AN INTENT-DRIVEN WORLD
  • 35.