Local Social Networks and Financing Journalism A business model Taylor Walsh [email_address] @taylorw Washington, DC August, 2009

First Principles People seek and gather information on the basis of their own personal interests. They often enjoy gossip and helping each other raise barns. Such behaviors predate Gutenberg.

People seek and gather information on the basis of their own personal interests.

They often enjoy gossip and helping each other raise barns.

Such behaviors predate Gutenberg.

Tech Principles, 2009 The inherent attributes of digital media have established its unique value, sustained thru technology and business iterations since the early 1980s: Connecting People based on their common interests. Delivering user-selected content and service, On-Demand . Enabling Content Creation and Sharing . By 2009 these attributes are embedded in the collection of technologies called Social Media . They respond to the basic impulses of the First Principles.

The inherent attributes of digital media have established its unique value, sustained thru technology and business iterations since the early 1980s:

Connecting People based on their common interests.

Delivering user-selected content and service, On-Demand .

Enabling Content Creation and Sharing .

By 2009 these attributes are embedded in the collection of technologies called Social Media . They respond to the basic impulses of the First Principles.

The Conundrum News organizations’ online presence is not built around those attributes; preferring traditional objectives: Region-wide service and CPMs to reflect it Content control By 2009, consumer online usage habits have de-coupled information needs from news consumption. The value of the historic news intermediary role on behalf of advertisers is dissipating.

News organizations’ online presence is not built around those attributes; preferring traditional objectives:

Region-wide service and CPMs to reflect it

Content control

By 2009, consumer online usage habits have de-coupled information needs from news consumption.

The value of the historic news intermediary role on behalf of advertisers is dissipating.

The Status Continued institutional basis for journalism is uncertain, as is the efficacy of high quality news that strengthens the democratic experience. Examination of alternative news models is well underway.

Continued institutional basis for journalism is uncertain, as is the efficacy of high quality news that strengthens the democratic experience.

Examination of alternative news models is well underway.

This Model Premise: A continued relationship between local news producing organizations and local merchants: As a reliable financial source. To reinforce the stake businesses have in their local communities Social media present a potential sustainable business structure to maintain those relationships.

Premise:

A continued relationship between local news producing organizations and local merchants:

As a reliable financial source.

To reinforce the stake businesses have in their local communities

Social media present a potential sustainable business structure to maintain those relationships.

Get Inside The Habit Create a business and service structure infused with the unique attributes of the digital medium.

Create a business and service structure infused with the unique attributes of the digital medium.

Applied Digital Media in Local Hyper Local Overlays the assumptions of conventional news media models -- serve the widest population -- onto smaller geographic area. Local Vertical Serves that regional population but through an aggregation of vertical social communities.

Hyper Local

Overlays the assumptions of conventional news media models -- serve the widest population -- onto smaller geographic area.

Local Vertical

Serves that regional population but through an aggregation of vertical social communities.

Example: A Shared Local Experience Say: Parenting Kids Who Play Sports Common experiences: Hauling to games and practice Buying gear, clothes, oranges and SUVs Managing daily life Concerns over: health, safety, new friends, bus trips, grades, coaches, success, happiness Advancing: in the sport; to college Finding a team or league Finding a coach Volunteering to coach or admin Multiple above by xx kids per family

Say: Parenting Kids Who Play Sports

Common experiences:

Hauling to games and practice

Buying gear, clothes, oranges and SUVs

Managing daily life

Concerns over: health, safety, new friends, bus trips, grades, coaches, success, happiness

Advancing: in the sport; to college

Finding a team or league

Finding a coach

Volunteering to coach or admin

Multiple above by xx kids per family

The View from the Sideline Dispersal of local sports parent networks around the metropolitan Washington, DC region. Common experiences within in home-centric geo-pockets . Overlapping: occasional (Montgomery - DC); never (Anne Arundel - Fauquier).

Dispersal of local sports parent networks around the metropolitan Washington, DC region. Common experiences within in home-centric geo-pockets . Overlapping: occasional (Montgomery - DC); never (Anne Arundel - Fauquier).

eServices in the Geo-pockets Email lists Yahoo Groups Google Maps Lame league / team web templates nobody updates Text messaging Tweeting? (if not now, inevitable)

Email lists

Yahoo Groups

Google Maps

Lame league / team web templates nobody updates

Text messaging

Tweeting? (if not now, inevitable)

View from the SMSA Blimp The Business Model Perspective: ~ 400,000 participants Annual spending of several $$ millions A constantly replenished participant base Large regional goods and service provider community

The Business Model Perspective:

~ 400,000 participants

Annual spending of several $$ millions

A constantly replenished participant base

Large regional goods and service provider community

A Model: Local Social Vertical Infuse with social media apps, thinking and contextual content Friend Lists: photos, vids, comment Provider Directories, Ads Specialists / Blogs Discussions Webinars Mashedup maps, vids, etc. Meetups SEO, SM externals ( @twitter ) A Guide, or 2 or 3… with passion Sales operation and back-end

Infuse with social media apps, thinking and contextual content

Friend Lists: photos, vids, comment

Provider Directories, Ads

Specialists / Blogs

Discussions

Webinars

Mashedup maps, vids, etc.

Meetups

SEO, SM externals ( @twitter )

A Guide, or 2 or 3… with passion

Sales operation and back-end

The Appeal to Merchants A Unique Value Proposition Aggregated groups with shared experience: Emotionally invested and committed. Buying goods and services central to the experience. Accentuating word-of-mouth. All local. Merchant participation strengthens the experience, making the merchant a worthy peer in the network. Emerging technologies - video, mobile, geo-location - applied in social context: strengthens the merchant’s market presence. Highly targeted, better ROI.

A Unique Value Proposition

Aggregated groups with shared experience:

Emotionally invested and committed.

Buying goods and services central to the experience.

Accentuating word-of-mouth.

All local.

Merchant participation strengthens the experience, making the merchant a worthy peer in the network.

Emerging technologies - video, mobile, geo-location - applied in social context: strengthens the merchant’s market presence.

Highly targeted, better ROI.

And About The News Part? So: How do you fund a reporter’s salary out of all this, exactly? First : Rearrange your mental image of the primacy of elements in the local media-sphere. From this

So: How do you fund a reporter’s salary out of all this, exactly?

First :

Rearrange your mental image of the primacy of elements in the local media-sphere.

From this

To this

To this

And Why Would We Do That? This is how people in local communities use the digital medium. I.e.: Barn Raisers go for News They Can Use (I.e.: the whereabouts of discounted wooden dowels) There is no “market” for News. Its Where the Money Is

This is how people in local communities use the digital medium.

I.e.: Barn Raisers go for News They Can Use (I.e.: the whereabouts of discounted wooden dowels)

There is no “market” for News.

Its Where the Money Is

Financing E Pluribus News LSV #1 = $$ LSV #2 = $$ LSV #3 = $$ LSV #4 = $$ GROSS = $$$$$ For News = $$ Net: $$$$ Local US Ad Market : $100 Billion Local Online Ads: $15 Billion Your City’s Share: (please fill in) _______________

LSV #1 = $$

LSV #2 = $$

LSV #3 = $$

LSV #4 = $$

GROSS = $$$$$

For News = $$

Net: $$$$

Local Social Vertical One model, based On: Historic user experience in networked digital infrastructures of all kinds. Application to life in and around local markets. Proven high-value contextual connection for local merchants and buyers. A business model of scale with the potential to fund enterprise journalism. Potential blending with other revenue models. Something to build from, and to adjust in passage.

One model, based On:

Historic user experience in networked digital infrastructures of all kinds.

Application to life in and around local markets.

Proven high-value contextual connection for local merchants and buyers.

A business model of scale with the potential to fund enterprise journalism.

Potential blending with other revenue models.

Something to build from, and to adjust in passage.

Who Can Do This? Yes

Yes

Further conversation Taylor Walsh [email_address] @taylorw taylorw.wordpress.com 240-478-6894 (Washington DC) E-Days Social & Online Media: 1981 ---> Next Tweet J-Days Montgomery Journal (MD) Paterson News (NJ) Daily Star (Beirut)

Taylor Walsh

[email_address]

@taylorw

taylorw.wordpress.com

240-478-6894 (Washington DC)

E-Days

Social & Online Media: 1981 ---> Next Tweet

J-Days

Montgomery Journal (MD)

Paterson News (NJ)

Daily Star (Beirut)