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Kevin: My colleague Roy Greenslade shows the threat to newspapers on paper. “Thankfully, most British newspaper owners and managers understand this. I’m afraid it is my fellow journalists who refuse to face reality.”
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Kevin: Kleiner Perkins sets up $100m fund to focus on iPhone startups. The iPhone SDK is a game changer especially because OS X developers can leverage their knowledge so easily.
Author Archives: Kevin Anderson
links for 2008-03-12
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Kevin: (Via Alf at reportr.) Robert Niles writes: “The key lies in abandoning any expectation that an employer will protect you. It is *your* responsibility to create enough value around your individual work”
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Kevin: Ewan McIntosh has an interesting post about “civic innovation and participation”. Government, civil society groups and news organisations need to be involved in this discussion. We need to increase social capital and civic participation and technol
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Kevin: Post worth reading from Mukund Mohan about plateau in Facebook use. I’m not sure whether this is part of the life cycle of an SNS or part of a broader trend. Niche SNS services have more staying power than Facebook, Friendster, Orkut. More later.
links for 2008-03-08
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Suw: Fearmongering makes me so cross, so very happy to see people giving this the respect it deserves.
Media08: China’s emerging digital culture
Kaiser Kuo, Group Director, Digital Strategy Ogilvy China (also a rock star)
China’s digital culture shares a lot of features with anglo cultures but also eastern neighbours – mobile culture of Japan and Korea. He is going to take some time to “bust some persistent myths”.
I was born in the States. He has lived in China continuously for 12 years. He is most famous for starting China’s first heavy metal band, Tang Dynasty. He plays guitar in Chunqiu. They think of CDs as name cards. You can’t possibly make money on the sales of physical units. He worked for tech mags including Red Herring. He was bureau chief for China. He is director of digital strategy for China for Ogilvy. He writes the Ogilvy China Digital Watch.
China’s wild, wild web. There are lots of caveats for foreign companies entering the Chinese markets. It is ferociously competitive. Any day now, China will pass the US as the country in terms of internet users. There 210 million internet users, and growth is accelerating. Growth has accelerated to more than 50% on an annualised basis. About half of those people are using broadband. Overall, internet penetration is extremely low: 15% as opposed to 60% in the US. It will not approach the level of the US for another decade.
- The average age is 32. In the US, that average age is 42. Roughly half are 24 years or younger. 40% of internet use amongst that age group.
- Predominantly urban, though growth is faster in rural China
- Relative neophytes: Half of current users not even online two years ago
- Focused on entertainment, not information
- Used to be overwhelmingly male, now relatively gender balanced
Instant messaging culture is massively important. Only 14% of internet users do not use IM. In the US, 61% of internet users do not use IM. QQ users send 40 messages a day, as opposed to 15 messages a day for AIM, one of the most popular IM clients in the US.
Chinese use IM as a primary internal and external business communications tool. Do not assume that Chinese staff on IM are not doing their jobs. The IM client QQ is so popular that they named a car after it. You must understand QQ to understand the market. It captures the zeitgeist. QQ facts
- 86.19% market share in IM
- 715 m registered accounts
- 288 m active users
- 36.2 m peak concurrent users
Internet cafes are extremely important, second only to home use. People go to cafes to play online games. The larger chains have 120 machines per cafe. High end gaming rigs.
Not a lot of UGC use. Newbies on the web are not jumping on many YouTube clones or blogging. It’s undeniable where trend is going.
Chinese BBS culture. There are 3 billion registered BBS users.
Number of mobile subscribers in China: 550 million. That’s 2.5 times the number of internet usres. It is growing at a rate of 7.5 m mobile subscribers per month.
More than Europe or the US, about 35% of mobile users are listening to mobile music.
Problems with mobile marketing:
- SMS spam has turned off consumers.
- WAP use rates remain low.
- Lack of meaningful competition for China Mobile provides little incentive to push WAP adoption.
- New subscribers are overwhelmingly prepaid with limited use.
- Fast 3G is slow in coming
- Mobile ads dominated by content with little brand advertising.
- There are few cases of compelling ad projects
Without a viable advertising market, development of the mobile internet will be badly hobbled.
Will China’s digital culture look more like Japan or Korea’s or America’s? Probably more like the US.
People say that China copies but doesn’t innovate. He joked about C2C not being consumer to consumer but copy to China. He says that China will become a net IP exporter. Blame the VCs? Venture capitalists are not an adventurous lot. If you are a Chinese entrepreneur, and you want to grab some of the billions.
He highlighted the Maxthon browser. First tabbed broswer. Only Chinese internet company with global footprint. He also pointed to high level of P2P users. Software and digital magazines are being distributed . ZCom, Poco, Vika. 60m users.
He was going to challenge some of the myths about the ‘Great Firewall’ and talk about western media’s obsession with net censorship there, but he ran out of time.
Media08: Death of ‘broadcast’ advertising.
Assia Graziloi-Venier, head of Ministry of Sount TV (London) and flypaper.tv
I’m going to blog a little differently during these sessions. I’m going to seize upon a few things that the speakers say and talk about this.
In looking forward to this year, Assia talked about the difficult of brands letting go of the power as they try to encourage consumers to become brand evangelists. One thing she said was that spam was dead. That’s not a revolutionary idea. (In some places, not only is spam dead, but it’s actually illegal.) But let me take that one step further. As I said during my presentation, many of mass media’s mistakes in a social media era are down to the industrial, mass media model being shoe-horned into the social media world. Isn’t spam just a low-yield broadcast message? It’s antithetical to social media.
No one likes spam, but to be a little provocative, if you take that idea of spam as a generalised, unfocused and unwanted advertising message, could one not also argue that TV and radio ads are generalised, unfocused and often unwanted advertising messages? Isn’t that why people are not only time-shifting with TiVo but also cuting out the commercials? What about people who surf with display ad blockers?
I’m not anti-advertising. I’m actually not calling or predicting of all advertising, just questioning the over-reliance on relatively dumb, untargeted advertising.
Media08: Al Jazeera and new media
Mohamed Nanabhay, head of new media Al Jazeera Network. I missed the first part of Mohamed’s presentation because I was doing an interview. I came in as he was talking Al Jazeera’s focus on newsgathering. He said that while CNN showed the missiles taking off, Al Jazeera showed where the missiles landed.
It’s not about mobile TV. It’s about shift in media.
- The ability for anyone to create and share media. This is a cultural shift. People try to ignore, and we’re still trying to figure out how to deal with this shift. Public and private lives blurred Incredible choice. Shift in trust.
- We have a shift in how we deal with technology and media consumption. He tells his 4-year-old daughter to ask Uncle Google if he doesn’t know. What they of TV and media has shifted. We consume media totally different.
How do we deal with new engaged audience? We used to talk about coffee shop culture. Kids are now sitting forward.
Industry issues
- TV and newspaper are losing audience to new platforms
- Content is going online whether we like it or not
- internal resistance to change
- undefined business models
Al Jazeera’s response
- Don’t fret over new platforms. Engage people wherever they are.
- Content is going online. Al Jazeera is making our content online while everyone is taking it down.
- Intternal resistance. Evangelise, experiment and empower. Win over people, and they will evangelise for you.
- Undefined business models. Quick, low cost, experimental projects and see what works.
He talked about a distributed distributed model. It doesn’t mean that TV is broken or throw out your TV.
They added an Al Jazeera English channel. 1.6 million people were introduced to Aljazeera English. People have put up 4700 videos online, and there have been 20 million views of those video.
They put up five of their most popular programmes. They are full 40 minute episodes. They allow people to embed the videos on their sites and blogs.
We have been talking about empowering people in Gaza to do video. People took out their phones into Gaza to provide video. People took the initiative.
Benefits of these models. People are discovering their content. They compliment the programming with new voices and new context. We create a sense of community around our content and are trying to be a part of the conversation.
He told the tragic story of an Al Jazeera correspondent being killed, but it was great to hear him talk about the channel’s commitment to journalism even under difficult situations.
As Ammar, in the comments below, and Mohamed, on his blog, point out, his presentation has been posted at Slideshare.
Technorati Tags: Media08
Media08: Digital Media Innovation Conference
As I blogged about before I caught the flight to Sydney, I’m at Media08 in Sydney. I’ll be blogging about some of the sessions. I probably will backfill some of these posts because I’m juggling a lot today.
Jack Matthews, CEO of Fairfax Digital, kicked off the day of presentations. He said, that Fairfax did not the luxury of multimillion R&D departments. We need to be lean to innovate. And originally, we thought about doing this. We thought it was going to be an internal staff as part of our professional development plans to bring together this elite team of ‘thought leaders.
This is the conference equivalent of speed dating. RSVP, their dating site, set Guiness Book of World Records for largest speed dating event.
David Kirk, (former captain of the All Blacks and) CEO of Fairfax Media. The issues you will discuss are on my mind everyday. How we rise to the challenges of today and manage them. They are difference between achievement and growth and mediocrity and decline.
Innovation is often thought of as the new new. It is not often that innovation is thought of in the context of the old: Publishing, automotive and mining (for instance). The Sydney Moring Herald reaches more people than ever. Moving from print publisher to multimedia company. They are focusing on integration and collaboration.
Three cornerstones of our strategy:
- Defend and grow our newspapers. Involves innovation and change. Key to culture. Have to hang on to core of our values and history.
“Our newspapers have to be connected to our audience and our readers. It remains the core of our success.” In US, see only decline. But the market is not the same here. - We need aggressive growth online. Three years ago, less than 2% of revenues. It will grow to 20% in a couple of years. It is the high growth part of our business.
- We need to be a leading digital media company for media markets of 21st Century. The strategy has to be robust. Consumer behaviour is changing rapidly.
Discussing this to our staff has been the most difficult thing for me as a CEO. Rapid changes make it difficult to communicate a sense of certainty. We learn along the way to describe what we talk about.
Focus on transition from publisher to leading multimedia company. We have to the best at originating content. It is our fundamental history and heritage. I often say digital content, but everything that we do is digital these days. No one has the people on the ground in communities as Fairfax.
Building ability to deliver audio and video content. A year ago 800,000 downloads a month, now 4 million a month.
To be successful, we have to own and leverage cross media brands to drive extension of audience reach.
He then talked about building multimedia brands. As a social media guy, I talk about building connections not brands. Certainly now those connections are part off that brand. I am wary of the obsession around brand. The menu is not the meal, and sometimes abstract discussions of brand misplaces a focus.
I agree with him a lot more when he is talking about multi-platform.
Where the audience goes, we have to go. The only way to aggregate audiences is to chase them.
New media is littered with companies without business models. You need proven revenue models. The revenue models turn audience and brand participation into money. We are focused on classified and display ads and transaction market. We have stuck to our subscription model. WSJ and FT see as sensible way to go.
I don’t necessarily agree 100% with him. Comparing a general media company to the FT and WSJ misses a point. We used to joke that the only content you can sell online is sport, business and porn. General content is commodity.
We have to build innovation into the DNA of the company.
We believe that we can hold our own. We still need to focus on the basics of good business everyday whatever the medium.
Fundamental drivers:
- compelling content, every minute, every hour, every day
- innovative, creative advertising and content sales
- reader, viewer, listener community – audience -connection and management
- production and distribution excellence
- every day need to be managing, developing and training people.
Media08: Making the change from mass media to social media
Suw and I just got back from our honeymoon on Sunday, and I’m at the airport again. I’m heading to Sydney to speak at Media08.
I’m going to be speaking about making the transition from mass media to social media. Trends in audience fragmentation continue, and mass media are increasingly challenged to deliver the size of audiences they once did, which threatens their underlying business model of mass audiences delivered to advertisers. Journalists have been particularly poor in adapting to these changes as the positive sense of public service that many journalists have has soured into a false sense of entitlement. Yes, journalism is important to the functioning of a democracy, but just because we believe what we do is important, doesn’t mean that people must pay attention to us. We’re competing for people’s valuable disposable time and income against not only other news outlets but also against other forms of information and entertainment. We’re competing against not only CNN, the Telegraph, the Washington Post and the Economist but also against iPods, YouTube, Digg, the Wii, Facebook, real books, instant messaging, text messaging and MySpace messaging. Time and attention is the scarce resource that we’re fighting for, and as I’ve said before, most journalists really don’t grok this.
As journalists, we should focus on quality content, but our audiences have moved on, too often quite literally. They expect not only quality content but real, social interaction around that content. Wrap your content in a community. In 2008, that can still be a unique selling point. But this isn’t rocket science, and while journalists have been fighting over fundamentalist definitions of what is and isn’t journalism, innovators not beholden to dogmatic definitions of journalism have been creating social experiences around media. See Newsvine, which iterated and innovated enough to get the attention of a small company up the road in Seattle (well MSNBC – part owned by NBC and Microsoft) who came knocking with a cheque. But the time to gain the first adopter edge is coming to a close. By the end of 2008, savvy media and technology companies will have already moved and social media won’t be such a differentiating competitive advantage.
I’ll blog more about this over the next few days as well as blogging about conference itself.
Just married!
After months of talking about it and planning for it, Suw and I are finally married. Thank you to everyone who sent along their congratulations and best wishes. Thank you to Chris ‘Pods and Blogs’ Vallance for being such a great Best Man. Thanks to Matt ‘Dopplr’ Biddulph for taking such great pictures. And thanks to all our friends and family who were there helping us celebrate with us.
We’re off to Barbados until March, and we’ve left the computers at home. We will be lying on a beach watching the clouds by and letting the sun melt away and surf wash our cares. We’ll see you in March when regular service will resume here at Strange Attractor.
Oxford Internet Institute: Continuing the conversation
After having the opportunity to speak about blogging and the US elections at the Oxford Internet Institute last Monday, the conversation is continuing. I apologise for not responding sooner, but I do have the small matter of getting married at the end of this week.
After my talk, I posted some links to links studies that I mentioned during the talk as well as well as added to some arguments that I made. One of the questions that was raised during my talk was whether the mainstream media should blog. Tobias Escher, a DPhil student and research assistant at Oxford, followed up his questions with a post. He says:
- Journalists and their employers do already have a voice in the public sphere, they do not need yet another channel to get their take on issues across.
- Most of these corporate blogs just don’t work. They are not written in the spirit of blogging, they are not looking for a real dialog (something they share with blogs of politicians) and aim only to co-opt bloggers into giving the media company some form of credibility.
- The money spent on developing these platforms should rather be invested into the core business of news providers, e.g. in foreign correspondents and investigative stories (ie. the things that are most difficult for citizen journalists).
I agree with Tobias on point one, and I have often said publicly that to justify the effort of blogging, financially and editorially, that news organisations must do more than simply chop up content that they already produce and put it in blog format. (A friend of mine calls this approach ‘news sushi’.) I often play a Daily Show video in which Jon Stewart jokes that MSM blogs ‘give a voice to the already voiced’.
What is the strategic reason for news and media organisations to blog? What are news organisations trying to achieve? It can’t be simply to publish more content. Does the addition of comments below articles offer any strategic advantage that outweighs the potential liability both in terms of possible brand damage and moderation costs?
For me, blogging is part of a community strategy, not a publishing strategy. As I wrote:
Adding comments to the bottom of stories or columns is a step, but it’s missing the point. It’s treating blogging strictly as a publishing tool, not as part of a broader community strategy. …
I’m not saying that it’s a mistake to allow comments on the bottom of articles or columns. But that doesn’t change the fact that simply allowing comments on static content isn’t taking full advantage of blogging. It’s is treating blogging as a content-management system that allows comments. If that’s your goal, just adapt your content-management system to accept comments.
And if that is your organisation’s goal, then I would argue that the risks do not outweigh the costs because the competitive advantages decrease while the cost remains constant. Comments alone are no longer a differentiating factor in today’s media market. They have become in many ways, a lowest common denominator in terms of participation.
I think Tobias is also right that most corporate and MSM blogs lack credibility. For one, they lack authenticity. They often have no voice, no humanity. In the US, journalists are hampered by believing that strict objectivity requires them to adopt not only a neutral tone but actually a boring, emotionless tone. Readers don’t believe us because they don’t believe we as journalists are actually objective. Also, why would anyone engage with the disembodied voice of objectivity?
In the UK market, blogging suffers from a belief that blogging is simply columns with comments. But the professional columnist still can lack authenticity and sees no need for engagement. As Dan Gillmor said, “We like readers plural, but we’re scared by readers singular.” Scared, and from a column delivered from a position of being above the conversation, professional columnists are often dismissive of the opinions delivered from beneath them.
I’m fascinated by the points of view that readers raise that I hadn’t considered, perspectives they bring that I don’t have. If I engage in the conversation as an equal, I often find that I don’t suffer the harsh blow back that some columnists complain about from readers.
Too many media blogs simply use the technology to give the appearance of interactivity with the addition of comments. But there is no conversation. There is a monologue from the media, and the conversation exists only amongst ‘them’, the commenters who come to discuss the article. Any sense of community remains completely external to the news organisations as long as journalists remain uninvolved in the discussion.
The bottom line is that if you are implicitly asking readers to interact by creating a space with comments, designed for conversation, that you have to be ready to be part of the conversation. Journalists who blog need to have some sense of responsibility for the conversations they start on their blogs, whether that be in the tone they set or their level of commitment to the conversation. Being a blogger is like being the host of a salon or a discussion group. A blogging journalist should bring original reporting from unique sources to the conversation, but they also should foster the discussion, highlighting interesting contributions from commenters, linking off to other interesting blog posts as part of the wider conversation and generally being congenial hosts. Why isn’t directly facilitating lively, intelligent, informed debate and discussion a journalistic function?
To respond to Tobias’ third point, which was to say that community isn’t the core function of a news organisation and not worthy of investment over news gathering functions, I cede that this is a valid and common question. I know that what I’m calling for is going to take time, effort and money. Most news organisaitons aren’t expanding, they are cutting back faster than the Detroit auto-makers.
To answer some of the cost concerns, I’d simply say:
- The real cost is not in the development of a new platforms but in staff costs, whether that is hiring new staff or diverting existing staff or staff time to blog or support community projects.
- As I wrote about recently, the development costs can be dramatically lowered by the use of open-source software. The New York Times uses WordPress. Morris Digital uses the open-source CMS Drupal, and there are several other open-source CMS and community software options.
- It is much less costly to add a new blog than it is to launch a new print product or section. These blogs can be focused on niche coverage that is interesting to readers and to advertisers and helps grow the business and support quality journalism.
As I said at Oxford, most news and media organisations believe that quality and brand recognition will help them cut through the increasingly cluttered media landscape. At the risk of repetition, quality does not guarantee success in today’s media market. I believe that news organisations need to reconnect with their audiences. It’s my belief that the news organisation with the strongest relationship with their audiences will succeed.
This doesn’t mean I believe that journalists should pander to readers, but I believe that social media gives journalists the opportunity to develop a direct relationship with ‘the people formerly known as the audience’. The tools make it easy for journalists to carry on a conversation with readers, involve them in reporting and build a loyal community. To me, it is a competitive advantage. It is one of the competitive advantages of a networked journalist. I draw on the wisdom in the crowds to enhance my journalism as well as feed Guardian journalism back into those crowds.
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Oxford Internet Institute, social media, blogging