Tag Archives: digital media

Unlimited Thinking

I’m not a fan of limited thinking. I much prefer the intellectual exercise of accepting the challenge of a difficult supposition and then figuring out a way to expand the set of answers. I often think of President Kennedy‘s challenge to put a man on the moon in 10 years when manned spaceflight had not really happened yet. Had everyone just said “no way” rather than “ok, so IF we were going to do that, how would we?”, we’d never have made it (nor had great films like Apollo 13!).

The Thinking Man sculpture at Musée Rodin in Paris

(Photo credit: Wikipedia)

I thought of that this morning when I read the quote below. It’s from a piece about the need for advertising to support content and a rant on how ad blockers are killing off content:

And so it really is a simple math problem. If there isn’t any money to pay the people who create content or buy and maintain the servers that host that content, there will not be any content. No one’s really coming at the story from that angle. And those who have lived almost their entire lives consuming content for free might need a good slap upside the head. In fact, everyone could use that slap. Because there are only two choices: ad-supported content or subscription-based content. And we all know most will take free if they can get it.

So there is our difficult challenge.  I disagree that there are only two choices, however.  I’ve also come to realize that it’s really only a problem for a select group of content providers.  First, the “two choice” thinking.  What about a freemium model?  Some very large publishers have successfully adopted it, and if the quality of what you produce is there, people will want more and pay.  What about a donation model?  PBS has used it successfully for years.  So does Wikipedia.  I know of several digital entities – podcasts and otherwise – that use Patreon to fund their content production.  It’s possible to use the appeal of great content to support an affiliate sales model too – buying products from links on a review site, for example.  Frankly, it’s not hard to argue that the ad-supported model is one of the worst options. Besides requiring a large audience to make it work, I think it encourages publishers to grab and abuse consumer data or to inflate page counts (and ad counts) with endless slide shows, etc.  Limited thinking means limited choices.

The realization is this.  Most “publishers” link to a limited set of high-quality content producers.  How many stories that you read, even on big sites, link back to the original work done in the NY Times or Wall St. Journal?  It might be a fun exercise to see how many of the people complaining about no money to support content creation are actually creating content or adding value to someone else’s content. Maybe another business model is a little pass-through of payments to the real content creators from those who are using that work to generate revenue?  There was such thinking back in the early days of the web.  What happened?

As I said upfront, I don’t like limited thinking.  Hopefully today you understand why that is.  Was I clear?

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A Better Ad Model

What does it say to you when people go out of their way to avoid your product?  Nothing good, probably.  That’s exactly what consumers are doing with digital advertising, and while it’s not good, it might actually be a blessing in disguise.  How so?  Source : comScore

I’ve been in digital media for 20 years, and during that time the question of “how do we pay for this” (monetization, in a word) has been asked constantly.  The obvious answer was to employ the ad-supported model of “old” media since adapting the subscription model to the digital age has proven incredibly difficult.  The problem is that with almost unlimited inventory, price pressures keep pushing down the revenue per ad and publishers just kept adding more “stuff” to keep revenues growing.  That’s not the case with traditional media, although TV has fallen victim to the same problem. Enter the ad blockers, which are a giant call to action to rethink the business model again. Well, maybe not the model but certainly the execution.

Some folks are already doing that with decent success.  Let me give you an example.  To unwind, I will often take short breaks to play a game on my phone.  While I don’t have an ad blocker installed on my phone, I have uninstalled a few games that popped up ads or placed the banners in places where it was likely that my fingers would accidentally click them.

One game I’ve been playing does something differently which I think is a very effective way to promote ad viewing.  Before I begin a level, a little box asks me if I want to watch a video and get rewarded with something I can use immediately in the game – a bonus life, a booster box, etc.  Saying “yes” brings up a full-screen ad of no more than 30 seconds – most are shorter.  The ads are almost always for another mobile game of some sort, and to get my reward I need to let the video finish.

This is a better way to market because it gives value to the user as well as to the marketer.  I almost look forward to the ad prompts since I gain something.  When was the last time you said that about an ad?  This sort of innovative thinking turned around the “avoid it at all costs” mentality, at least with this consumer.  It costs the publisher (the game I’m playing) nothing and brings value to all parties.

The business model hasn’t changed.  What has changed is that users are going to mobile, and within mobile they are hiding out inside apps. Rethinking how ads interface within those apps is how the business moves forward.  Showing ads that provide value to all parties – which includes the user – is the key.  You agree?

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Filed under digital media, Thinking Aloud

Gone In A Flash

If you are using Google Chrome as your browser, and over half of you are, your experience as you use the internet is about to change. Google has decided that as of tomorrow, September 1, they will begin pausing many Flash ads by default to improve performance for users. What that means is that if you are desperate to see an ad you will need to click on it to manually enable it. Otherwise, ads will remain plain images by default. Firefox is also doing this  and Amazon also said that it would no longer allow Flash-based ads to serve on its network or across its Amazon Advertising Platform.  In short, the bulk of web browsers is now Flash-unfriendly. This prompts several business thoughts.

First, yay Google and others!  Flash creates all kinds of issues, the biggest of which are that it drains batteries quickly, it doesn’t really perform that well on mobile devices (in a world that’s now mostly mobile) and, most importantly in my mind, it has abysmal security.  Just look at the recent malware attack launched via MSN‘s ad network as an example. This is a good thing for consumers and maybe makes our digital world a little safer.

Second, this is going to have a major effect of the digital ad world.  The supply of ad space is actually going to drop since much of what is out there is Flash-based.  That should kick prices up.  The question in my mind is will the price rise get publishers rethinking their ad load strategy?  I don’t know about you, but in my mind surfing much of the web has become a stroll through the proverbial Arabian bazaar – one hawker after another in an extremely cluttered environment.  Maybe this is how the tidal wave of ad blocking is pushed back?

Third, what will this do to the numerous ad-serving companies?  Who has technology that is so tied to Flash that their business model is disrupted and where are the opportunities in companies that aren’t Flash-based?

Finally, this points out how interdependent every digital business is.  The browser companies make a change and ad companies and publishers are affected.  A hardware company decides to change a business model, as Apple did with iTunes years ago, and nearly every subsequent business deal is held up to that standard.  Never a dull day in digital – how about in your business?

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Filed under digital media, What's Going On