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News Online Exchange for the Month of July - Content Moderation in Digital Advertising , Up Close and Personal

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  1. 1. DATE ISSUED : JULY 2012 JULY 2012 BUSINESS NEWSLETTER News Online XchangeNews Online Xchange (NOX) is the official monthly business newsletter of New Media Services Pty. Ltd. It serves to give up-to-dateinformation on the products and services under the NMS brand, as well as news involving the Web and Mobile industries. Content Moderation in Digital Advertising, Up Close And Personal Content moderation in context of a digital advertising agency is analyzing and editing user-generated material in order for it to be socially acceptable and Brand approved for the general public to view via Internet-based media. The Role of User-Generated Content in Digital Advertising Person of the Year Advertising is a very competitive business, and that isnt going to change soon. The traditional media are watching their revenues gradually wane, while brands clamour to get more bang for their advertising buck. Thankfully, some of the attention (and budgets) is turning to online, where new advertising ideas are born every minute. User Generated Content (UGC), also known as consumer-generated media (CGM), refers to any material created and uploaded to the Internet by non-media professionals, whether it’s a comment left on Amazon. com, a professional-quality video uploaded to YouTube, or a student’s profi le on Facebook. UGC has been around in one form or another since the earliest days of the Internet itself. But in the past five years, thanks to the growing availability of high-speed Internet access and search technology, it has become one of the dominant forms of global media. It is currently one of the fastest growing forms of content on the Internet. UGC is fundamentally altering how audiences interact with the Internet, and how advertisers reach those audiences. In 2006, UGC sites attracted 69 million users in the United States alone, and in 2007 generated $1 billion in advertising revenue. By 2011, UGC sites are projected to attract 101 million users in the U.S. and earn $4.3 billion in ad revenue. ` (Continued on next page.) e w
  2. 2. News Online Xchange JULY 2012 BUSINESS NEWSLETTER(Continued from previous page.)UGC and social networking as a major force on the Internet represents the greatest opportunity and challenge to marketers since the advent of the Internetitself. In the larger eco-system, social networking and UGC sites have provided high-value advertising inventory and audience segments needed to capturemore of the market share and targeted audience reach that advertisers demand, e.g. Microsoft’s investment in Facebook, Google’s acquisition of YouTube, andNews Corps.’ acquisition of MySpace. Today, brands of all sizes are eager to jump into the How does UGC offer something unique? UGC/social networking environment. But doing so While all advertising on the Web is interactive by nature, but UGC sites offer a unique and blindly—without clear objectives in mind—can lead to more complex level of engagement. Instead of inviting individual consumers into an an unsatisfying experience. As with any new environ- environment of their own making, marketers advertising on UGC sites are entering a ment, it’s important fi rst to understand where you want conversation initiated, maintained, and “owned” by consumers themselves. This requires to go and how you can get there before diving in. those marketers to behave differently, or risk what can be very vocal disapproval from UGC/social networking offers brand-building opportu- those consumers. UGC and Social Networking isn’t all “child’s play” either. A Fall 2006 nities far beyond what’s available through traditional analysis by comScore Media Metrix showed that more than half of MySpace users were advertising, but taking advantage of those opportuni- over 35 years old, and that 25-year-olds accounted for 71% of Friendster users. Separately, ties means first grasping some basics. executive networking site LinkedIn, reports that its average user is 39 years-old and has an annual income of $139,000.Comparisons to other forms of advertisingTraditionally, marketers have been able to buy time or space on fi xed media in a controlled context. They knew where their ad would appear, what it wouldlook like, and perhaps most important, in what context it would be seen. In other words, they could be guaranteed their message wasn’t being delivered in ahostile or inappropriate environment. Today, such guarantees are harder to make, and that lack of control can be a source of great anxiety for marketers. But italso represents an unrivaled opportunity.Advertising in UGC requires marketers to alter their approach. Instead of broadcasting one-way messages at theiraudiences, advertisers are compelled to engage in a conversation. Doing so carries risks, but failure to do so carries more.US User-Generated Content Creators, by Content Type, 2008-2013 (millions) 2008 2009 2010 2011 2012 2013User-generated video 15.4 18.1 20.6 22.7 24.9 27.2Social networking 71.3 79.7 87.7 94.7 100.1 105.3Blogs 21.2 23.9 26.7 28.5 30.2 32.1Virtual Worlds 11.6 13.9 15.4 16.9 18.4 19.1User generated content 82.5 88.5 95.3 101.7 108.0 114.5creatorsWorldwide User-Generated Content Creators, 2006-2011 (millions) 2006 117.9 2007 136.5 2008 157.5 2009 182.3 2010 211.1 2011 237.7Note: includes video, audio, photo sharing, blogs, wikis, personal Web sites, podcasts and online bulletin boards Source: eMarketer, January 2009 e w
  3. 3. News Online Xchange JULY 2012 BUSINESS NEWSLETTERNeed for Content Moderation It is crucial to ensure that only appropriate UGC Strict policies must be set and applied to govern is posted on the Web site by screening and content authenticity, originality, privacy, filtering for mal-content. Failing to do so could political/social correctness and legalities, both severely impact user traffic, company brand and locally and globally. Such policies should permit the bottom line. The huge growth and and promote UGC and sustain viable social pervasive¬ness of UGC within companies’ core network interac¬tions. Inappropriate content online user experience poses potentially includes, but is not limited to, profanity, sedition, complex challenges and heightens unnecessary violence, bare skin, false and outdated information, exposure to risk. spam and other inappropriate content.THINKING THROUGH CONTENT MODERATION CONTENT MODERATION METHODS HOW BAD CONTENT IS DETERMINED. Machine Moderation Community Moderation Human Moderation Reputation Know Content Flagging and Feedback Standards & Policy Content moderation has grown into a discipline that requires expertise in pattern detection and analysis. Although there are numerous software- based solutions in the market, they do not address the custom needs of particular businesses. With the right level of investment in moderating content, Web site operators can create an optimal strategy that maximizes customer satisfaction while minimizing abuse and impact on the company’s brand and reputation. With the increasing growth of UGC, as well as the technology, cost and scale needed to moderate it, achieving an optimal long-term solution requires detailed strategic planning and execution. A variety of options currently exist to help Web site operators protect and optimize their investments and reduce increasing moderation costs. Many organizations have outsourced their content moderation operations to reduce costs and enable more scalable and predictable business outcomes. Others have implemented both custom and standardized technology options to replace existing technology or to cut devel¬opment and maintenance expenses. Some companies have also experimented with content moderation crowdsourcing solutions to replace human moderation, with mixed success. While seemingly leveraging an unlimited number of resources at minimal cost may seem ideal, crowdsourcing to date still produces poor modera- tion quality. Other Web sites have gone purely with community moderation to reduce costs, but this also may produce mixed results, as the moderation of UGC can become overwhelm¬ing even for members Thus, many solutions are available for content moderation and evaluation, implementation and management. However, finding the right content moderation solution could be a difficult endeavor without solid strategic advice and a well-thought-out approach, leveraging industry best practices customized for specific needs, as well as a clear understanding of the objectives and ecosystem of your Web site. e w
  4. 4. News Online Xchange JULY 2012 BUSINESS NEWSLETTERDigital Advertising: Today’s Marketing Approach Investing in digital marketing pays backs with high ROI. Even a simple tweet or a Facebook post can bring glory to a business- if everything is performed properly. In the past decades, businesses were paying newspaper and magazine publications to print their ads. Public relations departments of big companies played the game by begging TV producers for interviews. Now, the marketing landscape has changed. Digital advertising gave rise to a new dimension of attracting and influencing customers. With this new marketing approach, businesses can reach their customers in a more affordable, convenient and engaging way. According to pros, digital advertising allows businesses to deal with their customers and consumers directly via the internet. The former approach deals with businesses approaching media people who impart the promotional message to the target audience (two-way process). Viral web materials are a proven ingredient of today’s business promotion. YouTube has been taking part in helping businesses spread their viral videos. Viral videos, which are mostly humorous clips, are shared by viewers to others on the internet for free. Thus, successful advertising creations nowadays are mostly novel, interesting and pop culture-based. Most businesses seeking for international prominence create a Facebook page. They get moderators to manage the social media page. Facebook groups can narrow down the target audience of a business page. Other businesses use other social networking sites, like Twitter and Google Plus, to directly socialize with their customers. Social media buttons and plug-ins are also becoming essential website components. The buttons allow visitors to share the website link to their social networking circles. Tablets and internet-enabled phones are replacing the old version of mobile phones that only allow calling and texting functions. These new gadgets facilitate digital advertisements in reaching a wider range of audiences. Digital advertising sparked a new level of transparency among businesses. Websites, social networking sites, blog sites and digital advertisements can be accessed anytime and anywhere by anyone. Information, both the truthful and fabricated ones, is overflowing on the web. Moderation services make sure that web entries and advertisements associated to the business do not damage the reputation of a business. e w
  5. 5. News Online Xchange JULY 2012 BUSINESS NEWSLETTERInformation Highway How much do sites profit from UGC? Estimated Revenue for each site in 2010: 45MILLION 243MILLION 288MILLION 945MILLION 1.860BILLION UGC Advertising Statistics CPM (Cost per 1000 Impressions) for Various Sites All based on US Market REGION 2011 2012 2013 2014 2015 CPM FOR FACEBOOK ADS BY DEMOGRAPHIC CPM FOR FACEBOOK ADS BY DEMOGRAPHIC North America 41.7% 41.8% 41.5% 40.7% 40.2% $1.28 Western Europe 28.8% 28.0% 27.3% 27.0% 26.5% $1.24 $3.56 $3.22 Asia-Pacific 24.1% 24.6% 25.1% 25.8% 26.2% $3.15 $1.16 $1.14 Eastern Europe 2.7% 2.7% 2.7% 2.8% 2.8% $2.66 $2.47 $2.44 MARRIED Latin America 2.2% 2.5% 2.5% 2.8% 3.1% $1.05 $2.00 Middle East and Africa 0.5% 0.7% 0.9% 1.1% 1.3% The Rise and Fall of Advertising Media 75% % change in advertising spend (2009-2010) 32% 11% 14% 1% 2% 9% Newspaper Magazines Outdoor Radio Television Internet Social Media Mobile Marketing -10% Maximize your websites social potential by adding an Instant Messenger feature! e w