John Battelle Founder & Chairman  Federated Media Publishing
John Battelle Federated Media Publishing MPA December 2005 SEARCH, WEB 2.0, BLOGS, AND ALL THAT:  THE ROLE OF MAGAZINES IN...
WHO IS THIS GUY?
Agenda…. <ul><li>What is a publication, really? </li></ul><ul><li>Where are we now, how did we get here? </li></ul><ul><li...
What Defines a Publication? <ul><li>A  conversation  between three parties: Author, Audience, and Advertiser; facilitated ...
What Does NOT Define a Publication? <ul><li>The medium in which it is delivered </li></ul><ul><ul><li>Magazines should not...
What’s Different Now? <ul><li>Web 1.0 (1994-2001) </li></ul><ul><ul><li>Was about “getting on the web” </li></ul></ul><ul>...
A Brief Web 2.0 Primer <ul><li>Version 1.0 of the Internet:  Long on vision, short on execution, shorter on profits; marke...
THE RISE OF WEB 2.0 <ul><li>Mid-Late 90s - we thought it was a battle for the  window into computing : Netscape v. MSFT. <...
Web 2.0 Principles:  THE WEB IS A PLATFORM <ul><li>Building on the lessons of the 1990s </li></ul><ul><li>Open source, che...
Web 2.0 Principles:  THE ARCHITECTURE OF PARTICIPATION <ul><li>Leverage user-generated content & the force of many to crea...
Web 2.0 Principles:  INNOVATION IN ASSEMBLY <ul><li>Aggregate, manage, analyze complexity </li></ul><ul><li>The essence of...
Web 2.0 Principles:  LIGHTWEIGHT BUSINESS MODELS <ul><li>The Web as Platform plus AoP = new generation of “lightweight” co...
Web 2.0 Principles:  THE POWER OF THE TAIL <ul><li>The force of many: 1 million sites with 1000 readers is far larger than...
Web 2.0 Principles:  SEARCH RULES <ul><li>The driver of  Web 2.0 businesses </li></ul><ul><li>Search heralds a new “Web OS...
HERE’S WHY SEARCH RULES Piper Jaffray
THE PAID SEARCH MARKET <ul><li>Piper: 5x growth in 5 years </li></ul><ul><li>59% of money is coming from other media budge...
Gap Between Net Ad Spend and Usage Morgan Stanley
NEW MEDIA WAS NOT THAT NEW <ul><li>MSM model: Publisher hires content creators, attaches advertising to content, subscript...
MARKETING IN  POST SEARCH WORLD:  INTENT BEFORE CONTENT <ul><li>Before Search:  Content as proxy for audience  </li></ul><...
DISRUPTING FORCES <ul><li>… and Publishers freaked out </li></ul><ul><li>Ad models shifting to intent </li></ul><ul><ul><l...
<ul><li>Save our old model! </li></ul><ul><li>Search undermines content-attached models </li></ul><ul><ul><li>Ad can be so...
<ul><li>Authoritative content, deep archives </li></ul><ul><li>Talented authors and editors </li></ul><ul><li>Community dr...
<ul><li>Print ain’t dead, but online is forcing justification of its economic model  </li></ul><ul><li>For some print base...
CONTENT DRIVEN,  NOT DISTRIBUTION DRIVEN <ul><li>We must evolve old models while embracing new realities </li></ul><ul><li...
WEB 2.0 PUBLISHING MODELS (it really is different online…) <ul><ul><li>The Disaggregation of Publisher role </li></ul></ul...
…And the Author Was Held Apart <ul><li>Publisher retains authors to gather Audience (content-driven) </li></ul><ul><li>Mar...
The Web 2.0 Publishing Model <ul><li>…But in Web 2.0, the publisher plays a  facilitator’s  role </li></ul><ul><li>And the...
Example: Make  <ul><li>Idea: Popular Mechanics for the Digital Life </li></ul><ul><li>Problem: Publisher was not a magazin...
Example: FM <ul><li>Blogs are difficult to buy at scale </li></ul><ul><li>Bundle an ecology of sites together - 10-20 per ...
So What’s Your Advice, BlogMan? <ul><li>Train your editors/writers/authors to be web native, and hire natives - focus your...
So What’s Your Advice, BlogMan? <ul><li>A magazine is not a form factor, it is a conversation </li></ul><ul><li>Join it vi...
THANK YOU! [email_address] John Battelle Federated Media Publishing MPA December 2005 SEARCH, WEB 2.0, BLOGS, AND ALL THAT...
 
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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.

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  • Leveraging Consumer Magazine Brands in the Digital Age

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

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