GENERATIVE MEDIA
Fueling growth through networks of activity
http://www.flickr.com/photos/heliopaz/2007012694/
TOPICS

1. Market context 4. Commercial
                     framework
2. Impacts on
   journalism     5. Future
         ...
TECHTONIC SHIFTS

• More     people online, increasing usage, connecting

• Client   software, tools for creation, standar...
Competing on audience
    is very hard
Distributed platforms are
 bigger than ‘properties’
1 Billion
 Internet
  Users!
(15% of all
  people)
“the notion of the Web as the ultimate
marketplace for digital delivery is now in doubt.”
actually, total Internet
 activity is exploding


                    Video


                     P2P


                 ...
HAVE WE CHANGED, TOO?


• What   have we done to be a part of that growth?
• What’s different about what we do today compa...
1T
                     Google’s Search Index



          26M
                                   1B

1997   1998   1999  ...
Twitter            Facebook




          Tumblr
“An application that doesn’t leverage the
power of the cloud is not interesting. It’s
going to be too narrowly defined.
Why...
WHAT’S DIFFERENT ABOUT
        TODAY?
Go to where the users are

“In the new distributed world you want to be
where the people are.
The media brand is less a de...
“Our most interesting
    experiments lie in
combining what we know
   with the experience,
opinions and expertise of
 the...
By Andrzej Krauze
Photo by D.C.Atty
“Journalism without effect does not deserve the
special place in democracy that it tries to claim”
                       ...
THE M-U-S-E FRAMEWORK
  An operational model with practical examples
Things




          Make       Use

         Evaluate    Share
Ideas




          Internal     External
Things that    Things that
we make         people use




Ideas that       Ideas that
we evaluate   people share
Make
Core
   Apps                      Web servers


        App




                   Proxy
                              App...
WE KNOW WE’RE DOING
        WELL WHEN...
• We    make things quickly and cheaply

• The   things we make perform well, hav...
Use
Core
                             Api
   Web servers

                             Solr
    App server

                  ...
WE KNOW WE’RE DOING
        WELL WHEN...
• People   buy our paid-for products and see our free products
• We    receive a ...
Share
WE KNOW WE’RE DOING
        WELL WHEN...
• People   both implicitly and explicitly indicate interests in things
• They spr...
Evaluate
The cost of flying the British (and
other) flags: £95,506, as reader
Sam Keir points out.

A spokesperson for the Departme...
“It's going to be about poring over data and equipping yourself with the tools to
analyse it and picking out what's intere...
WE KNOW WE’RE DOING
           WELL WHEN...
•   We see important trends early, generally before the
    competition
• Peop...
Make       Use




Evaluate   Share
SOME USEFUL METRICS
MAKE                                                  SHARE
• Time to develop, number of people involv...
Decisions based on
       value
THE COMMERCIAL MODEL OF
    NETWORK GRAPHS
User
             Tag




       URL
Ad




User
                  Tag




       URL
HOW IT COULD WORK


• target   ads to users based using profiles data
• adjust   messaging to match content of page
• make ...
Media orgs are
 complicated
By Nimages DR
Generative networks
build value for all those
    who participate
•   Our information technology
    ecosystem functions best with
    generative technology at its core.
•   Generativity i...
PATTERNS TO THE FUTURE
complexity




           Excitement


activity
                             Frustration   ?
SUCCESS PATTERN

1. create a new layer of activity
   that simplifies the complexity in
   the network
2. commercialize acc...
activity
          le
       sab y
    ow or
  br ect
    dir
complexity
activity
      h
  arc
se ex
   ind
                    le
                 sab y
              ow or
            br ect
 ...
l
  cia
so ers
  filt




                                   activity
                h
            arc
          se ex
   ...
?
            l
      cia
    so
                          h
                       arc




                              ...
Photo by maddito
WHAT MIGHT HAPPEN?

• New  languages form. Learn to communicate in
 greater detail and with more abstraction
 simultaneous...
complexity




                        ?




activity
“Today, after more than a century of electric
 technology, we have extended our central
 nervous system itself in a global...
THOUGHT EXPERIMENTS

• Visual language: Report the experience of a live event
 without using either words or photography.
...
CONCLUSION
“We are still learning how to deal with a
medium that is more than uni-
directional and thrives on collaboration
more than...
These changes show the emergence of a new
information environment, one in which individuals are
free to take a more active...
“In order to take territory you have to be
   taking territory from someone else.

But I think one of the best things is, ...
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
Generative Media: A model for growth through networks of activity
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Generative Media: A model for growth through networks of activity

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Strong digital media businesses fuel valuable activity across networks.

While the things that media organizations produce can define the brand, what happens as a result of producing an article, some data, a picture, a video, a package of stories, a sponsored message, a retail advertisement is what defines the value of the business.

In particular, it’s the generative media platforms that become the strongest.

This means that a platform benefits from the actions that their customers, participants and users take and then, crucially, reflects more value back out to them as a result of their actions, encouraging them to do more.

I’ll try to use this presentation to articulate what that media model looks like to me. It comes from a bit of experience trying to make such a thing work and from lots of observation across the market over a few years now.

In this case, I’m exploring how to tackle it from 3 different points of view. I’ll start with some larger market context. Then I’ll go into a more operational context, showing lots of examples. Finally, I’ll look at how the trajectory sheds light on what the future may hold for this model.

Where possible I’ll use examples from what we’re doing at the Guardian to illustrate what I’m talking about, but, to be clear, this is not a definitive strategy, by any means.

The full transcript is posted here:
http://www.mattmcalister.com/blog/2011/01/04/1730/generative-media-networks-fueling-growth-through-action-introduction/

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Generative Media: A model for growth through networks of activity

  1. 1. GENERATIVE MEDIA Fueling growth through networks of activity
  2. 2. http://www.flickr.com/photos/heliopaz/2007012694/
  3. 3. TOPICS 1. Market context 4. Commercial framework 2. Impacts on journalism 5. Future trajectory 3. Practical examples 6. Conclusion
  4. 4. TECHTONIC SHIFTS • More people online, increasing usage, connecting • Client software, tools for creation, standards battles • Distribution methods, points of control, platforms • Connecting the real world, devices, location • Following the cashflow, new revenue streams, companies • Changing behavior, new norms, rules, regulation
  5. 5. Competing on audience is very hard
  6. 6. Distributed platforms are bigger than ‘properties’
  7. 7. 1 Billion Internet Users! (15% of all people)
  8. 8. “the notion of the Web as the ultimate marketplace for digital delivery is now in doubt.”
  9. 9. actually, total Internet activity is exploding Video P2P Web
  10. 10. HAVE WE CHANGED, TOO? • What have we done to be a part of that growth? • What’s different about what we do today compared to 2-3 years ago? • Who has benefitted from these changes?
  11. 11. 1T Google’s Search Index 26M 1B 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 http://googleblog.blogspot.com/2008/07/we-knew-web-was-big.html
  12. 12. Twitter Facebook Tumblr
  13. 13. “An application that doesn’t leverage the power of the cloud is not interesting. It’s going to be too narrowly defined. Why the mobile phone? Because it’s the high volume endpoint. It’s more human. It’s more interactive. It’s more dynamic. It’s more personal. It’s a principle of Mobile First. Now our top engineers are developing products for devices first.” - Eric Schmidt, February 2010 @ MWC
  14. 14. WHAT’S DIFFERENT ABOUT TODAY?
  15. 15. Go to where the users are “In the new distributed world you want to be where the people are. The media brand is less a destination and a magnet to draw people there than a label once you’ve found the content, wherever and however you found it.” - Jeff Jarvis, Buzzmachine, “APIs: The new distribution”
  16. 16. “Our most interesting experiments lie in combining what we know with the experience, opinions and expertise of the people who want to participate rather than passively receive.” Alan Rusbridger, Cudlipp Lecture 2010
  17. 17. By Andrzej Krauze
  18. 18. Photo by D.C.Atty
  19. 19. “Journalism without effect does not deserve the special place in democracy that it tries to claim” Jonathan Stray
  20. 20. THE M-U-S-E FRAMEWORK An operational model with practical examples
  21. 21. Things Make Use Evaluate Share Ideas Internal External
  22. 22. Things that Things that we make people use Ideas that Ideas that we evaluate people share
  23. 23. Make
  24. 24. Core Apps Web servers App Proxy App server App Memcached (20Gb) App App rdbms App M/Q App CMS external hosting app engine etc
  25. 25. WE KNOW WE’RE DOING WELL WHEN... • We make things quickly and cheaply • The things we make perform well, have acceptable errors • We make interesting, creative, groundbreaking things • Our work is of a high standard, considered better than most competitors • The amount of what we produce is sufficient for demand
  26. 26. Use
  27. 27. Core Api Web servers Solr App server Solr Memcached (20Gb) Solr Mashery rdbms Solr Solr M/Q Solr CMS Cloud, EC2
  28. 28. WE KNOW WE’RE DOING WELL WHEN... • People buy our paid-for products and see our free products • We receive a high value subsidy for what we offer • People dive into our products and spend time with them • Partners use our stuff, and they are making money as a result • Partnerspay for access to our people, processes, platforms, other partners • Our market share in all the things we offer is strong
  29. 29. Share
  30. 30. WE KNOW WE’RE DOING WELL WHEN... • People both implicitly and explicitly indicate interests in things • They spread our work through their social nets. Their social actions result in more actions from those connections. • They participate in conversations we trigger and add to them with their ideas, both within and away from our products. • They actively contribute by giving or selling us material to evaluate and then make things • Thingschange in the world as a result of our work and the impact of our readers, users, and partners acting on it
  31. 31. Evaluate
  32. 32. The cost of flying the British (and other) flags: £95,506, as reader Sam Keir points out. A spokesperson for the Department for Culture, Media and Sport said it was responsible for providing and managing the flag-flying services for ceremonial state occasions, including state visits, trooping of the colour and special flag days, for example Commonwealth Day, UN Day and Europe Day.
  33. 33. “It's going to be about poring over data and equipping yourself with the tools to analyse it and picking out what's interesting. And keeping it in perspective, helping people out by really seeing where it all fits together, and what's going on in the country.” - Sir Tim Berners Lee
  34. 34. WE KNOW WE’RE DOING WELL WHEN... • We see important trends early, generally before the competition • People with important information share it with us directly • We are good at verifying information, recognizing it’s value and knowing what to do with it • We are honest and fair in our assessments, and the market validates that view • We are accurate and truthful by most objective standards
  35. 35. Make Use Evaluate Share
  36. 36. SOME USEFUL METRICS MAKE SHARE • Time to develop, number of people involved • Implicit interests collected from end-users • Real cost of development • Explicit interests collected from end-users • Ease-of-use, performance and errors • Number of shares (tweets, RT’s, likes, mailto’s, etc.) • Aesthetic appeal • Number of referral URLs posted • Strengths against competition • Number of clicks from shares and referrals • Weaknesses against competition • Number of comments within our stuff • Number of comments elsewhere as a result of our stuff USE • Quality of insights from comments • Number or amount of things produced • Number of people using each thing EVALUATE • Number of repeat uses • Number of articles/posts/pictures/video pitched to us • Amount of time spent • Cost of acquiring articles/posts/pictures/video, etc. • Breadth and depth of usage • Amount of information intake • Supply vs capacity ratio • Cost of data analysis on external inputs • Number of things purchased • Success rate in surfacing strong signals in the data • Amount received from buyers • Low failure rate: verifying information • End-user response to promotions • Low failure rate: accuracy • End-user conversion rate on promotions • Amount received from advertising promotions • Number of partners using our stuff in their stuff • Revenue partners are earning from using our stuff • Amount partners are spending to use our stuff • Market share: end-users • Market share: partners
  37. 37. Decisions based on value
  38. 38. THE COMMERCIAL MODEL OF NETWORK GRAPHS
  39. 39. User Tag URL
  40. 40. Ad User Tag URL
  41. 41. HOW IT COULD WORK • target ads to users based using profiles data • adjust messaging to match content of page • make it happen in real time
  42. 42. Media orgs are complicated
  43. 43. By Nimages DR
  44. 44. Generative networks build value for all those who participate
  45. 45. • Our information technology ecosystem functions best with generative technology at its core. • Generativity instigates a pattern both within and beyond the technological layers of information technology ecosystem (generative devices can actually lead to generative content-productions systems, like Wikipedia, for instance). • Proponents of generative systems ignore the drawbacks that attend generativity's success at their peril
  46. 46. PATTERNS TO THE FUTURE
  47. 47. complexity Excitement activity Frustration ?
  48. 48. SUCCESS PATTERN 1. create a new layer of activity that simplifies the complexity in the network 2. commercialize access to or on top of that activity
  49. 49. activity le sab y ow or br ect dir complexity
  50. 50. activity h arc se ex ind le sab y ow or br ect dir complexity
  51. 51. l cia so ers filt activity h arc se ex ind le sab y ow or br ect dir complexity
  52. 52. ? l cia so h arc activity se ry to ec dir complexity
  53. 53. Photo by maddito
  54. 54. WHAT MIGHT HAPPEN? • New languages form. Learn to communicate in greater detail and with more abstraction simultaneously. • Thephysical world gets reinterpreted. A new “the world is flat” moment occurs. • Gettingoff the grid becomes very hard. The new haves-v-havenots is about being untraceable.
  55. 55. complexity ? activity
  56. 56. “Today, after more than a century of electric technology, we have extended our central nervous system itself in a global embrace, abolishing both space and time as far as our planet is concerned.” - Marshall McLuhan, 1964
  57. 57. THOUGHT EXPERIMENTS • Visual language: Report the experience of a live event without using either words or photography. • Working off-grid: Get a quote remotely from a source in a way that is 100% untraceable by anyone ever. • P2P distribution: Find 1,000 readers for a story without publishing it through any kind of commercial entity.
  58. 58. CONCLUSION
  59. 59. “We are still learning how to deal with a medium that is more than uni- directional and thrives on collaboration more than it does on competition.” - Jon Paton, CEO Journal Register
  60. 60. These changes show the emergence of a new information environment, one in which individuals are free to take a more active role than was possible in the industrial information economy of the twentieth century. Photo by Joi Ito
  61. 61. “In order to take territory you have to be taking territory from someone else. But I think one of the best things is, we’re building real value in the world, not just taking value from other companies.”

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