Showing posts with label Advertising. Show all posts
Showing posts with label Advertising. Show all posts

Friday, November 20, 2009

Embrace Our Twitter Ad Overlords, Assuming Relevancy

Those of you who have some history with the blog know that I am not a huge fan of advertising. I skip commercials on my TiVo. I don't click on banner ads online. I switch stations when listening to the radio, assuming I am not listening to my ad-free iTunes library or ad-free Sirius XM radio app. I once said, to some controversy, that most bloggers don't deserve any ad revenue at all, and also took considerable effort to report many Facebook advertisements as being offensive. But despite all this, with official word from Twitter COO Dick Costolo coming that the service will indeed include advertising in the very near future, I am fine - pending any future annoyances. Why? Because I am not anti-advertising. I am pro relevancy.

In my rant against bloggers who don't add clear value trying to get a piece of revenue, I aggressively said "services offer real value, bloggers don't", adding, "Web services are adding real value to the Web by changing the way we interact and communicate. Bloggers, myself included, are not. We are more like consumers than producers in this case, and the last time I checked, consumers pay, they don't get paid, no matter how excited we might be about a product."

After much debate, Twitter, a service which provides value to millions, is looking to bring ads to the table in what they promise will be a unique way. With the growing talent base at the company, there's no doubt they see what has happened to traditional advertising models, and they don't likely want to see a race to the bottom in terms of quality. In order not to damage the trust they have accumulated with users, they will need to provide a new and differentiated approach to this model that derives real value - for the company, for the advertiser and for the viewer. I don't want to see yet another copy of AdSense. I want to see something very new.

Overwhelmingly, most of us in the Tech Web want Twitter to succeed. Despite the many concerns we have had about the service and its occasional hiccups, we recognize its growing role in the world of communication, and see it as a growing player in infrastructure, taking share from e-mail, and my personal favorite, RSS. That the company would have to grow from a revenue-free model to one that has a revenue stream was clear, barring an early buyout from a stable tech leader.

Much of the problems with today's ads, which have seen lower rates for advertising across the board, has been tied to a lack of relevancy. I asked that ad companies would leverage my social profile and give me accurate ads downstream, through utilizing my content-rich Facebook profile or some other site. Twitter has a unique opportunity to know not just what my social profile looks like, but they know what I talk about, what I share, they will know, through geolocation, potentially where I am, and how I am characterized, thanks to lists.

I do not hate advertising. I hate bad, wasteful, untargeted advertising. If advertising is accurately targeted and provides value, it is much like finding a new blog post on a topic I like, or finding a product I really do want to buy. I have seen page after page after service after service that has taken the easy way out and slapped up advertising just because, but if somebody can get the formula right, it can only be good for the Web in general. Good services deserve revenue, and good customers deserve good, relevant, ads. I will hold my breath and hope that Twitter gets this formula right.

Wednesday, September 2, 2009

Social Media Is Infrastructure: PR, Marketing, Ads Safe


Practically the only thing guaranteed that social media will kill is your free time. Maybe it will kill your real-world social life too, but that's only if you choose to have an intimate relationship with your computer, at the pure neglect of the world outdoors. While it's popular and tempting to say that social media is poised to eliminate core business elements, such as marketing, public relations, or advertising, the truth is that the latest Web tools are simply infrastructure, to be used well. More traditional departments in business, and the third party vendors who provide their services, will need to adapt to a changing world, but they aren't going anywhere.

On Thursday, the refrain that PR, Marketing and Advertising "Suck" was debated in a panel I participated in, featuring Loic Le Meur of Seesmic, Guy Kawasaki of AllTop (as moderator), Steve Patrizi of LinkedIn and Renee Blodgett of Magic Sauce Media.

Loic's experience of having hired and fired an expensive (to him) PR firm in his first years promoting in the Valley, combined with his visibility and success that has largely been self-led, as well as a general sense that quality is missing from much of the industry, has seen him question the entire process. In a detailed blog post, Loic cites bad practices including fake reviews and press releases, and contrasts that with how major Web services, like Twitter and Facebook, have largely relied on word of mouth to bring their message to new users. And it was with this background that we participated in Thursday's discussion.

Guy Kawasaki asked each of us how we could successfully market our products if we had no budget, or a very small one - which fell below a typical retainer for any reputable PR firm. Most of us, myself included, recommended utilizing your personal relationships and network if you had no cost. I also recommended reaching out to second-tier bloggers, who can be your product's biggest advocates. Loic said you should get a community manager for low cost to see what people are saying online and respond quickly.


Tap Into Your Personal Network to Save Money

Much of the conversation was framed in terms of listening to services like Twitter, and blogs. It was debated what constituted spamming on Twitter. Renee said that listening for keywords and reaching out to potential customers was a major part of how her clients found prospects - which I agreed with, but others questioned. I said that sending somebody an unsolicited note on Twitter to gauge interest was just fine the first time, and spam the second time. Meanwhile Steve Patrizi kept asking his board of directors for more money.

For as much fun as I have talking about new and cutting edge applications on this site, I recognize that the actual penetration for many of these tools is very small. While some services have started to go mainstream, many other tools, including traditional public relations and advertising, tools as basic as Google AdWords and customized landing pages, are absolutely necessary, especially as you travel up the approval foodchain in the enterprise - trying to convince C-Level buyers to acquire what could be six-figure products. So I tried to discourage some of the over reliance on social media tools for those companies who are trying to reach all their customers.


This Panel Is Going to "Suck" If I Hear Twitter Two More Times

When change happens, people tend to get nervous. It's a fact of life. When you hear examples of bad behavior, it can be easy to assign an entire industry or group of people all the blame.

It is my belief that smart public relations firms, smart marketers and smart advertising firms will not shrink away from the challenges that come with reaching potential influencers and buyers in new places, which require a breadth of awareness, and rapid responses. Those that embrace tools, and recognize them to not be scary - taking to blogging and tweeting and social networking as quickly as they did e-mail and phone calls, will be leaders for the next five to ten years.


What If You Get Negative Feedback?
Practice "Truth In Marketing"

Do PR firms screw up and do ads get ignored? Absolutely. We can each probably think of many cases where that has been the case. But Web sites didn't put those firms out of business, and neither have blogs. Social media won't do so either, unless these firms and individuals are closing their eyes and pretending the tools don't exist. That Loic and others are thinking about the major changes that are underway in our industry is fantastic. That Loic has been able to listen well and leverage his personal brand to help raise visibility for his products has no doubt been very effective. But saying an entire industry "sucks" or is unnecessary is overdoing it. These are tools to be leveraged, and I look forward to each of these industries growing with these tools and delivering new best practices that benefit us all.

See Also:
Loic Le Meur: PR, Marketing and Advertising suck, now what?
Kosmix Blog: Advertising, PR, and Marketing Suck! Now What?
Down the Avenue: Advertising, Marketing and PR Suck: Now What?
Shari Sax: Is Social Media THE ANSWER when traditional marketing “sucks”?

Videos Courtesy: Shari Sax's YouTube Channel

Wednesday, July 22, 2009

Proxifeed Delivers Automated Tweets and Ads Based on Keywords

Whether you think Twitter is about conversation or about broadcasting, there is no doubt many people use it to help distribute links to share with their followers. Marketers, PR people and spammers alike have also found the social network a strong place to congregate, as they track for mentions of their name, their competition or potential buyers. (See also Travis Murdock's Marketing In the Feed post)

Proxifeed, a new tool released by Stéphane Osmont, who you might remember from his work on YokWay, automates much of the process, creating a Twitter feed built on links related to keywords you feed, including some for revenue - should you be interested.


The Proxifeed Process: A Proxy For Human Input

Upon logging into Proxifeed with your Twitter credentials, the service asks you to provide some keywords for automated postings. The more specific the keywords, the more unique your content could be. You also have the option to present three types of feeds: Content only, advertising, or a mix. You can also add one or more RSS feeds to the mix, be they blogs or from any source.

To complete the feed, choose an update frequency, and Proxifeed will then do the work on the back end to keep your automated Twitter feed going around the clock, whether you publish once an hour or less often.


Three Potential Twitter Feeds From Me Based On My Keyword Choices

Curious what would happen if I turned over my Twitter posting to a machine filled with keywords, I tested Proxifeed with technology terms and sports terms, to see what would happen. Not surprisingly, Proxifeed searched through its bank of RSS feeds and selected specific items to go along my natural activity. By putting in the keyword "Facebook", I had an ad for a dress with the name Facebook. By putting in "Oakland A's", I got an Oakland A's lollipop.


Proxifeed Would Offer My Followers This Lollipop


Proxifeed Also Found a Facebook Dress for Sale

Proxifeed says its offering can create "exciting and engaging" Twitter streams that will get people with similar interests to follow and make your "follower base grow", so I can see how this might be enticing to a spray and pray marketer, or somebody who opts to turn off ads and then becomes a master aggregator on a specific topic. But for people who want to remain personal on Twitter, the most likely option would be to possibly use Proxifeed instead of TwitterFeed to distribute blog posts automatically. Otherwise, the clear non-authenticity of the updates and implied personal endorsement would be quickly exposed.

If you think creating an automated Twitter feed based on keywords and a few RSS feeds is right for you, Proxifeed absolutely fits the bill. But if you want your Twitter to be updated by a human (hopefully you), you can pass.

Thursday, April 9, 2009

Weblogs Inc's iPhone Ads Show Focused Content Delivery

By Daniel J. Pritchett of Sharing at Work (FriendFeed /Twitter)

The AOL-owned blog network Weblogs, Inc. is running ads on their properties that are tailored to viewers with iPhones.  Poke around on WoW Insider's iPhone portal at i.wowinsider.com and you'll likely be greeted with an ad pointed straight into the App Store.  Look at Engadget's i.engadget.com and you might see an ad for Land Rovers or other luxury goods.

This is the first time I've seen an ad that specifically identifies me as an iPhone-browsing consumer and supplies ads relevant to that context.  There are plenty of demographic iPhones (or in my case, an iPod touch) on a site about gadgets using an iPhone.  WoW Insider's preponderance of streaming video links make the Babelgum video app a good bet for direct-to-iPhone advertising.  

The integrated nature of the App store means that any iPhone user who clicks through on the ad pictured at left is likely to be able to buy the ad with one click more thanks to Apple's foresight in saving credit card information to iTunes accounts.  This is a dead-simple impulse purchase lined up and ready for consumers to pull the trigger.  

What else can we do with targeted mobile advertising?
We've previously seen the release of iPhone-specific ads in the form of entertaining apps like this Dockers app depicting a man who dances when the iPhone is shaken.  A recently released ad trading network facilitates the creation of a "webring"-style collection of affiliated apps that advertise for one another.  One thing I've noticed about these neat Weblogs, Inc. ads is that they aren't automatically pushed to iPhone users.  When I surf to WoW Insider on my iPhone I'm not immediately redirected to the mobile site.  I didn't even realize the iPhone site existed for quite a long time.

Maybe Weblogs is simply testing this particular advertising channel without wanting to roll it out to all mobile users yet?  It seems prudent to connect these targeted mobile ads with every possible mobile user that comes through their virtual doors.  Simple blog plugins like MobilePress already demonstrate the ease with which mobile-optimized sites can be used without requiring users to find a separate URL.  Why not auto-detect all mobile viewers and give them links to the App Store or whatever other e-commerce engine is most applicable to their handset?  I'm going to keep an eye on these integrated iPhone / App Store ads - it should be very interesting to see if they can live up to the standards for targeted advertising Louis hoped for in his recent post "I Wish Ad Companies Would Truly Leverage Social Profiles".

Read more by Daniel J. Pritchett at Sharing at Work .

Tuesday, April 7, 2009

I Wish Ad Companies Would Truly Leverage Social Profiles

This evening, while reading early feedback on the brand new baseball season over on ESPN.com, I saw yet another ad for a singles dating service, promising me access to available ladies waiting to hear from me. My first thought wasn't to turn on Private Browsing in Safari and do some clicking around, but instead, a desire that ESPN and its ad partners would just leverage my Facebook profile, know I'm married (and not looking), and stop showing me ads that made no sense. It would help my experience, and dramatically help their click through rates and success.

Given advertising seems to be a necessary evil to make the Web go round, there really needs to be a concerted effort for companies to take the wealth of social information that is embedded in all these networks, and get the targeting ever better and closer to being truly personalized. The opportunity seems too great to pass up, and all the ingredients are there - even if the occasional privacy proponent claims concern.

Facebook and other networks like it, including LinkedIn, FriendFeed and Google, are amassing piles of information about me. They know what I like. They know my family situation and my career path. They know where I graduated from high school and college. They know what music I listen to, what sports I watch, and my favorite teams. They know where I used to work and who I still keep in contact with. But as previously discussed, even Facebook's guesses as to what ads are relevant to me are pure failure - which I only somewhat jokingly said we should help combat by marking them all as "offensive".

Forget about wondering how much money Facebook is going to make through selling ads on its own site, or selling credits and game points. I think the real money is in Facebook offering to team up with all the major advertisers on the Web (Google/Doubleclick included) and letting said advertisers tap into our personal profiles, giving them a cut of the downstream revenue. Facebook has proven they know us, even as their ad team does not. Turn over the right data to ad people who do know what they're doing, and maybe I'll stop being annoyed by ads that have nothing to do with me.

Wednesday, March 11, 2009

Google's Move to Behavior Ad Targeting Should be Excellent for All

Today's Tech Web is ablaze with discussion around Google's announcement that they will be moving more toward behavioral targeted advertising in its offerings, letting advertisers learn more about the users they are messaging to, and, hopefully, letting consumers see advertisements that are more accurate, more targeted, and more interesting. If done well, advertisers will see higher click-through rates, consumers will be less irritated with off-topic ads, and Google will continue to make even more money.

Thanks to some of my more direct comments on advertising, I might be seen as being anti-ads in general, but that's really not the case. As often as I skip commercials and avoid ad banners, that's as much a function of them being completely nonsensical and having nothing to do with me as it is a function of some holy war against the market.

In June of 2008, I posted a comment using GMail/Google Talk to FriendFeed, saying, “I've seen a lot of stories lately around behavioral targeted advertising, and privacy. But in theory, wouldn't you rather see more relevant ads? Isn't this a good thing?"

It was my position that people were (and are) worried about passing data to a central source, and having Big Brother watch their online activity, but that I felt the concerns were overwrought. I have a tendency first, to trust services, and second, to expect the notion of privacy has changed dramatically in a world where we post all our particulars to LinkedIn and Facebook anyway.

At the time, responses ranged from Susan Beebe's direct, "I HATE online ADS . period. They suck big time," to Mark Krynsky's more diplomatic take, when he said, "I think it's a win for both advertisers and users and since I realize that ads are what allow me to receive great free content and services I welcome them."

Ads aren't going away. While my previous comments centered around what people should expect in terms of revenue from ads, or the ads being completely unqualified, today's move by Google signals a giant shift change in terms of what people should expect in this market. They're not the first company to embrace behavioral targeted advertising, but as the biggest, it should have wide ramifications.

I hope that this move means I will see fewer banner ads for dancing monkeys and silhouettes offering me low mortgages, and more ads for tech gear and sports items. I hope that Google's new direction means fewer false guesses of my interests, based on keywords in the content I'm reading, and more correct guesses, based on sites I visit - and trust me, I'm on the Web practically all day long, so the wrongness adds up. I for one welcome our new behavioral advertising overlords.

Wednesday, March 4, 2009

The Future of Twitter: Integrated Search, Trends, Featured Users

By Eric Berlin of Online Media Cultist (FriendFeed/Twitter)

People have been speculating on how Twitter is going to make money for what seems like forever. This slideshow from Fred Wilson, a venture capitalist with Union Square Ventures (which has invested in Twitter), features a screenshot that may signal how it's actually going to happen.

Slide 22 simply reads: Where We Are Going


And from what I can see, I like the direction that Twitter is going in here, and think it makes a lot of sense.

Making the profile experience central
Bringing Twitter search into the profile experience is a huge no brainer, and something long overdue stemming from the acquisition of Summize in July, 2008. Twitter search is a fabulous way to pick up trending data about what people are chattering about right now, amongst many other uses, so it makes all kinds of sense for Twitter to base their monetization strategy around this killer app within their community's midst.

Adding value, not just adding ads
I think I've probably screamed louder than anyone else for two years that Twitter should simply (for starters, mind) throw a 728x90 ad banner at the top of every single Twitter profile page. Even at a ridiculously low CPM, or so my argument went, you're at least paying for some bandwidth at that point.

Well, Twitter ignored me, and maybe that's okay. (I said maybe!) I really like that the emphasis – at least on this slideshow presentation – is on bringing relevant and trending data to the user through Twitter search in real time.

Featured/matching users
Having an Adwords-like system that lets advertisers pay to insert featured and matching user profiles based on keyword searches is a great idea. (And just maybe that's why Google CEO Eric Schmidt dropped some snarky comments today about Twitter being a "poor man's e-mail system?) I've always felt that ads stop being annoying and negative exactly at the moment and time when you're delivered something that you actually want, and this is an opportunity to do just that.

Trending topics and nifty queries
It will be interesting to see how or if Twitter will attempt to make money off of featuring "trending topics" and "nifty queries." This could be an opportunity for advertisers to partner with Twitter for creative integrated campaigns. Think "win a Honda by tweeting your favorite thing about it," with associated campaign hashtag, except more creative!

Harrison Hoffman at Webware notes:
We have known that integrated search has been coming for some time, and Biz Stone even wrote that it Twitter would start testing integrated search in February, so this is no shocker. It is interesting to see how the microblogging service might be going about implementing it, though.

I have to note that in comparing Biz's small screen capture in the Twitter Blog post linked above to this one from Fred Wilson's presentation, it appears that Wilson's shot might be older, so Twitter's integrated search might look different in its current state.
While the page design and UI may get fiddled with before final deployment, I think we're finally starting to see Twitter's revenue model come into focus. And in this current economic climate, you'd think they'd want to get started on the making of the money sooner rather than later!

Read more by Eric Berlin at Online Media Cultist

Wednesday, February 18, 2009

Outbrain Unveils Revenue Plan With Advertising That's Not Evil

When Outbrain announced it had raised $12 million in its latest round of funding, I openly speculated that the team and its VC partners had wind of a revenue plan that the blogosphere at large hadn't been alerted to. Sure enough, just a week later, that secret has been revealed, as Outbrain, today, rolled out a new program that will display sponsored related links, attached to blog posts from its network of users, myself included. They call it "sponsored but good", and it represents an attempt to find a solution that is beneficial for readers, publishers and advertisers, which has proven very difficult for many vendors.

Outbrain is well-known for its rating widget that sits below users' posts, and tries to find related stories, both on the blogger's site and the service's network. Starting today, some posts will also feature a sponsored link - not to a paid-for blog article, but instead, to an organic article selected by the advertiser which will put their product in a good light.


An example sponsored ad, via Outbrain

I spoke with John LoGioco, the company's vice president of business development, yesterday, and he said he hoped the new program delivered a "perfect balance," as readers would find new and interesting content that was non-disruptive, advertisers would put sponsored content on trusted sites, and publishers could gain revenue.

The benefit package delivers a good share of revenue to the blogger in today's announcement, LoGioco said, adding he hoped the program would be one that be trusted and adopted by bloggers looking to add another incremental revenue stream along the more typical display ads, dominated by Google.


The hope? An advertising plan that works for all

"Advertisers are excited so far, because they know the power of trusted voices driving demand creation if people are considering a product but are in the discovery phase," LoGioco said. "They haven't really had a chance to take a piece of the conversation that has been positive about them and amplify it. We can reach the influencer audience, and it is scalable."

With Outbrain's growth in popularity, serving an ever-increasing number of recommendations from sites in the network, the company has reached the point where advertisers are looking to reach readers - ones that are tired of seeing pop-up ads and other tricks that get in the way of their information browsing.

"We have all seen how platforms can be good for the advertiser or the publisher, but rarely for the reader," LoGioco said. "The advertising is in a non-disruptive format, and it leverages authentic brand endorsements. We are being very honest and open with bloggers and publishers."

The target for the "Sponsored but good" program won't be for direct marketers, and it won't be self-serve. Bloggers can opt in to receiving revenue from the program, and can remove specific sponsored links, once registered with Outbrain, and use what they call a link zapper to zap live sponsored recommendations. And if you think you're share of the revenue pie isn't going to impact your life, you can even choose to pass it off to charity.

See Also: Coverage from CenterNetworks, Mashable and VentureBeat.

Wednesday, February 11, 2009

I Just Marked All Facebook Ads as Offensive. So Should You.

The world is still looking for a better way to target customers with ads and products they want to actually learn more about. And the world will have to continue looking, if the offerings on Facebook are any indication. On the rare time I am logging in to the site instead of setting up roost on FriendFeed, Twitter or LinkedIn, I am amused to annoyed by the stupid ads that have absolutely nothing to do with anything I would be interested in - from meeting other singles (not single) to losing weight (unless it involves bacon and donuts) and getting my share of the government's stimulus package.

Facebook, like many other sites, is desperate to bridge the gap from traffic to revenue and profits. Usually that entails filling all available non-content space with ads. And often, that means the filtering process on said ads is beyond miserable.


So today, I had enough, and marked all the ads I saw on Facebook as "offensive", as they let you do. But each time I marked one as offensive, a new one popped up. It was a virtual electronic game of whack-a-mole, only it looks like nobody won.

I'm all in favor of seeing ads for things I might be interested in - new tech, sports or political books from Amazon... CDs from artists I like. Apple or TiVo products... you name it. But the run of site crap is just that.

So if you want to send a message about how the ads offend you, if they do, then say so. Facebook will know the difference.


Oh... and I think it was probably a coincidence that Facebook started to go "on maintenance" after my ads feedback. Or was it?

Friday, February 6, 2009

Lijit Search Is All About Relevance. Now Go Update Your Widgets!

Yesterday, I had the opportunity to fly out to Boulder, Colorado to meet with Lijit's executive leadership team, at the request of Micah Baldwin, the company's friendly tireless and unique evangelist. A happy Lijit badge wearer for the better part of the year, I initially started using the blog search engine thanks to its drop-dead simple integration into my site and associated search tag cloud (see the right column), but yesterday's discussion helped open my eyes to many things about Lijit that I have been missing, and you no doubt have as well.

Under our noses, Lijit has grown from a cute widget play to harnessing one of the most targeted search engine and content archives on the Web - but has done so in a way that's remarkably different than Google. Now, before you go to lijit.com and try to find a search button, let me explain...

Google's goal in life is to find the one right answer that is true for everyone. Search for iPhone, and you should get the same answer I do at the top of the results, blanketed by potentially relevant ads from the company's partners. Lijit's goal in life is to find the one answer that is most accurate, depending on where you are searching. Search for iPhone on my blog, and you will find the most relevant responses that come from my blog and my content from around the Web, including Flickr, Twitter, Delicious, YouTube and other social sites. Search for iPhone on Steven Hodson's blog (also using Lijit), and you should get a different set of responses based on his activity.

There is no one right answer, and there shouldn't be, because we each look at the Web through a prism that is colored by our own activity. Lijit does this well. Google does not - even if they are working on it. Just think about how you search Google today. You almost certainly are searching with multiple keywords, not just one, because a broad search for "bicycle", "train" or "beagle" is going to be way too muddled. But search for "beagle" on my site, and you will get something personal.

Meanwhile, Lijit has also stepped up its game in terms of a more targeted advertising network, around its publishers and its highly targeted search results. The more relevant the search and the more relevant the data around the searcher and the publisher where the search is taking place, the higher the click-through rates. The company showed us details that illustrated significant click through differences between them and Google - the 800 pound gorilla in the space. Publishers who opt in to the Lijit network can set a floor for what they estimate their cost per click should be, and Lijit will work to get that price - promising no less than 10 cents to the publisher per click on an ad.

The company also turned on revenue sharing for publishers, so if you have been running Lijit search on your blog for some time, you should log into your Lijit account and see if you've racked up any earnings. You could have money owed you haven't collected on!

The New Widget's Three Faces

Speaking of updates you probably didn't know about... I learned yesterday that the widget I have been using for Lijit was out of date. They now offer an "all in one" widget that not only shows a search bar and search terms (and reshare when people find your site from a search engine) but also detail on those recent visitors, including geography. At one point I was running a similar script from Feedjit (not Lijit) to get that data, and Lijit gives it to me in one place. To get yours, go to lijit.com, log in, and click "Search Wijit" at the top. On the left side, you can see a checkbox to make yours an "all-in-one Wijit!". There are even new options like a "Surprise Me!" bar that will take you to a random post on the blog you are visiting.

In the past, I have been fairly vocal in terms of saying that blogging is not about the ads and the revenue (at least for me). I believe that when you cross the line from blogging for the experience and for content discovery and move to pro blogging, it becomes all about the money. But Lijit has made strides toward making ads less intrusive and more relevant to you and the visitor, making them "less evil" and likely more rewarding.

The next big step for the company will be to better explain what they do and what they want to be when they grow up. I've already seen big moves, not just between when I first discovered Lijit, and today, but also in terms of how the company is a real business with a real roadmap and big plans. They're not out to take Google head on, or anything crazy like that, but they are about delivering the best, personalized, search results to the publisher and the viewer.

Like I have championed for Disqus to become the standard for blog comments, I would strongly hope Lijit becomes the standard for blog search. It just works, and the team continues to innovate. Now go update your widgets.

Saturday, January 31, 2009

Vote for Your Favorite Super Bowl Ad on Twitter Using SocialToo


Watching and judging the best Super Bowl advertisements each year has become as traditional as the game itself. While the Pittsburgh Steelers and Arizona Cardinals will be battling it out on the field for the Vince Lombardi trophy, companies and advertising agencies themselves are looking for their own big prize - tremendous visibility in front of one of the world's biggest audiences.

Tomorrow, thanks to an idea spawned by Brian Solis, carrying on a tradition run by Jeremiah Owyang last year, we will be holding a Twitter-wide survey, using SocialToo, to get the opinions of thousands of people, live, during and after the big game. (Also see: Jeremiah's post)

To participate in tomorrow's big survey, and say which Super Bowl commercial was the big one, go to: http://socialtoo.com/survey/view/1221 and vote.

You can also discuss the ads, as they happen, just by posting your thoughts to Twitter and adding the hashtag: #superbowlads. When you use that hashtag, your comment will be added below the survey on SocialToo.

The results will be tabulated after the game. Participating to help spread the word are Brian Solis, Jeremiah Owyang, Guy Kawasaki, Jesse Stay, Chris Heuer, and others.


DISCLOSURE: I am an advisor to SocialToo.

Monday, January 19, 2009

Face It: Facebook Needs A Facelift

Guest Post By Adam Singer of The Future Buzz (FriendFeed/Twitter)


image credit: pshab

I've written previously that Facebook and MySpace are the modern AOL and Prodigy. I stick by that. The great walled gardens of the web live on more than a decade later, resurrected by Web 2.0, but just as closed off, spammy and unexciting as before.

I have been thinking about how little time I spend on Facebook and why the open Web and other social sites are far more interesting. Here are some observations:

There is no interesting content in Facebook itself

People who create great content don't do so within Facebook - they know better than to contribute their hard work to an area they don't control. The best content creators do so on the open web because they want to retain the value of their efforts. If you are a content creator (or a marketer) be careful with the amount of time you spend contributing content to a closed network.

I get it, you need to fish where the fish are - but use Facebook to draw people to a place you control, not one where you have to play by the rules of another network - that is dangerous. They could change the rules at any time, or there could be a mass exodus of users from the network as we have seen time and time again in the social areas of the Web, rendering all your hard work worthless. Use Facebook as a part of your outpost strategy, but draw visitors back to a unique spot that is yours.

Content sharing on Facebook is far behind the curve

I will see something compelling on Reddit/Digg, message boards/forums, blogs, StumbleUpon and other areas of the open web, and then days or even weeks later it ends up on Facebook. Facebook is fine at sharing friend-centric content like pictures of your last social gathering with a group, but it's simply not a place for discovering news, interesting blogs, or other valuable content. The content eventually gets into Facebook via links but by the time this happens, it is old news. In fact, just use FriendFeed and easily get everything in one place, customized exactly how you want it.

Facebook wants to keep you on Facebook

Their network is built to keep you on their site, which is something that never sat right with me about walled gardens. Google's OpenSocial platform and now Friend Connect are much nicer and I personally like their strategy more - integrating social elements with web properties that already exist and with tools that have real value. They seem more willing to let go and allow users to drive the network, not vice versa, a strategy I agree with.

No option to opt out of third party application invites

It is either all or nothing. You can use apps, but you don't get a choice to opt out of requests from others to add applications. Of course not, because Facebook wants to inspire developers to spend time developing apps purely for their system. It leads to me having to click "ignore all" when the end of every week looks like this:

Why would I want to add any of these apps? I have used Facebook since I was in college and it was a student-only network, and have watched it slowly degrade into a place equally as spam-filled as MySpace. Just because the layout is cleaner doesn't mean it isn't spam.

Facebook advertising is broken - both for advertisers and users

Many have reported that Facebook advertising results have been lukewarm at best. The ads they serve me are pretty terrible as well. I'll give you a quick example: I am single, so Facebook tries to serve me ads for dating sites. I have no interest in using online dating services, thus the ads are irrelevant to me. Facebook has the option of giving feedback on ads, so each time a dating ad is served, I actually take the time to give them feedback that the ad is irrelevant to me and vote it as such.

Concurrently, they serve me ads about marketing and music, things that are of interest to me and actually a good fit. So not only do I click the relevant ads, I go a step further and give them feedback that these are good ads, please serve me more of them. Yet I am continually served dating ads. I have a hard time taking them seriously as a marketer when they clearly have a system in place to improve the user experience but don't bother to use it.

Here are the ads Facebook is serving me (I took a quick screengrab):

Facebook gives you the option to click the "thumbs down" where you can let them know feedback:


I have been letting them know these ads aren't relevant to me for several months and they are still serving them. But why even bother giving feedback if no one is listening? Their system just doesn't learn.

You don't hear career success stories from time spent on Facebook...

Yet we hear great stories about people building their reputations or scoring jobs through LinkedIn or a blog all the time. All we hear about Facebook (and MySpace) is people losing their jobs or not receiving jobs due to inappropriate photos/content on the profiles.

For well-connected individuals, the "people you may know" function is useless

I can't remember the last time I actually knew someone in the "people you may know" section of Facebook. Yet they show these right on the homepage daily to all their users. As an example, I was served this today:

Facebook is offering these people as connections to me merely because we both went to UF (University of Florida)? That is hardly what I would call a connection, the number of people who went to UF is staggering, and just because we both went to UF doesn't make someone relevant to me. If that is the best they can do, they shouldn't even offer this feature at all. How about instead of people I may know, what about people with similar interests? That would actually be useful.

For example, I list some relatively obscure electronic music artists in my profile under musical preferences. If they connected me with others that have similar taste in music, that would actually be interesting. Also connecting me with other public relations or marketing professionals would be interesting too.

The way they are currently trying to guide my hand in building a network isn't very useful. It just seems like they have so much meta data on all of us but aren't using it in ways that actually would build value and draw us deeper into the network.

Difficult, perhaps impossible to gain critical mass with anything directed outside the Facebook platform

Again, this is by design - Facebook seeks to keep its users on their network as long as possible so they may gain more ad impressions. Applications, pages and groups within Facebook can easily spread within the network, but I haven't seen many ways to easily direct Facebook traffic outside of Facebook. MySpace too. This is all by design of course and why I mentally file Facebook in the "closed off" section of the web. I know Facebook just launched their connect tool, but I'd be interested in seeing what the actual results of that are for site owners. I'm not talking about sites like TechCrunch that already have critical mass, I'd be interested to hear the results from sites in the long tail.

The conversations on FriendFeed, on blogs, on Reddit, Digg, Twitter, etc. are far more interesting

The conversations on Facebook are not even close to the level of the open web, or even other social sites. Do you notice the same thing? Perhaps it is the poking, the cheesy applications, or the general nature that people carry on within the network, but I see far more compelling conversations outside the walled gardens. Perhaps it is because people with deep interests seek out specific networks or build their own, and view the general networks as less specific and relevant to them.

Wrapping up...

Facebook is actually useful for things like staying updated on what you're friends from years past are doing, but this doesn't provide any real value other than fleeting entertainment. The people I am interested in staying connected with I am already connected to in more useful ways.

My use of the internet is not to develop fleeting social relationships for entertainment, but to develop more valuable relationships with people to work and collaborate with on projects and ideas we're passionate about.

As it stands right now, Facebook just isn't all that interesting a place to spend time if you are seeking compelling content or looking to build a subscriber base, it is merely an outpost. Your largest opportunity is to build an audience for your brand or yourself in a place that you control. Remember, these monolithic social networks can fall out of favor quite quickly and hemorrhage audiences.

Devoting too much effort to any one platform, especially a social network like Facebook, is far riskier than working on a place you control where you can build multiple traffic streams to. This way if one stops producing you'll still have other options.

It's not that I dislike Facebook, it is just I have found the site to offer a better user experience in years past - and that is the opposite of what I would expect for one of the leaders in social networking. The experience on Facebook should be getting better, not worse. I know from conversations with colleagues I am not the only one who feels this way - hopefully they are listening and will work to improve things in the future.

Read more by Adam Singer at The Future Buzz

Thursday, January 15, 2009

The Global Recession Is Crushing Web Ads. Expect it to Get Worse.

That I am not a fan of Web advertising on Web services and blogs is not a big secret. I was roundly pummeled for my over the top comments in April that tried to divorce authors from the idea that they could publish a blog, add AdSense and then wait for the money to roll in. But recent developments make it look like the Web advertising crunch is becoming critical. Inventories are not being sold, prices are dropping dramatically, and it's very likely more and more services reliant on ads are going to feel the pinch, forcing them to rapidly change their business models or close altogether. And they won't be alone. I'd look for many multi-author blogs you've grown to rely on to start thinning the ranks of reporters as ad returns weaken, and some have already started to make such cuts.

Back in December of 2007, I expressed my concerns in a piece called "The Web Advertising Bubble Has Got to Pop", where I said:
"The more I think about it, the more obvious it becomes to me that the ad-driven economy, both offline and on, could soon be in dire straights, and companies hoping to cash in need to think of new revenue targets - quick."
The reasons I gave for decreasing ad revenues, at the time, stemmed largely from audiences learning to avoid ads, or to use software to block them. I mentioned that even the mighty Google would be susceptible to a crunch, if was to happen, in the online ad market. Like others, I didn't forecast a massive global recession, but as the financial markets have spiked lower, and public markets have been closed to innovative companies, the drive to reach a profit, and do so without relying solely on ads, is stronger than ever.

Last night, Duncan Riley of the Inquisitr summed it up in what had to be a tough piece for him to write, "The Web Ad Apocalypse". He, being one of those bloggers who is heavily reliant on ad revenue, said advertising inventory at his providers has dramatically dropped. He adds, as I did more than a year ago:
"Advertising in blogging and 2.0 services/ apps is on the downward march, and companies that rely on advertising that were marginally profitable, or running at a loss are about to find life that much harder."
Duncan's comments are not in isolation. TechCrunch reported today that video ad rates dropped 25% in the last quarter. Be it in video, in banners, or in text ads, the trend is downward.

It is my belief that this problem, while exacerbated by the financial downturn, has been a long time coming. While Google made money hand over fist by pushing sponsored ads alongside native search results, their AdSense product, beloved by many bloggers, is often way off the mark when it comes to contextual advertising - and practically the only memorable online ads are those polluted by nonsensical dancing and misleading graphics that make you think you have a computer virus, or lie to you and say you've won an iPhone by being the 1 millionth visitor. I'd say we've come a long way from the late 90s when we were asked to "Punch the Monkey", but we haven't.

Online ad successes in Web services and blogging are not non-existent, but they are incredibly rare, and they are going to get rarer still. If you're trying to make money on the Web, it's time to think of a different way. If you have a service, get users to pay for it. Find a way to deliver value through premium offerings. Charge monthly fees. But the whole "free plus ads" mantra is going to get worse - and not worth the effort in many cases. That's a major reason I've never run ads here. I knew the trade-off for mucking up the site wasn't going to be worth the pennies. Now it's clear that's likely all I'd ever get.

Sunday, December 28, 2008

Bias, Bias and More Bias. I Haz It. So Do You.

A few weeks ago, the blogosphere's flareup of choice was around a handful of bloggers who had opted into a commercial program from KMart, where they wrote posts in exchange for gift cards to the retail chain. (See Chris Brogan's original post and the follow-up for a recap.) The controversy lay in whether participating in the campaign eroded the participants' credibility. Could their allegiance be bought for a few bucks? Would other posts be not so clearly labeled, but also paid for?

As somebody who has never posted a sponsored post, or been paid to say anything on this site, ever, I'm somewhat on the outside looking in for that specific discussion. But if you extend the idea of bias and influence a tad further, it's everywhere you look.

Longtime readers of the site know I play favorites. In February, I said I "don't play fair", favoring small companies over large ones. I promote services, people, blogs and ideas I like. I ignore conversations I don't care about. I choose products to not buy. I don't write about topics I don't find interesting. That's because the blog is personal, and I'm not an automaton.

My biases come from ten years of working in Silicon Valley, touching roles from product requirements to product deployment and evangelism, customer interaction and highlighting, public relations, business development, Web development, sales and advertising. My biases come from a decade and a half of being a near full-time Web consumer, finding services I've had good experiences with and those I've had bad ones, making and enforcing preferences.

If KMart came to me, offering $500 to do a giveaway, I'd almost certainly ignore it. Not because $500 is pocket change (it's not), but because I don't care for the KMart brand and going that direction isn't interesting to me. It sets a precedent and I would expect my readers to have the same questions they did for the others involved. But there are dozens of services who I have highlighted on the blog over the last three years, for whom I would be happy to highlight their latest updates, for free, because I find them interesting and I hope you do as well. I delight in finding new services and acting as an early adopter to find the good through the raw, and see potential.

I am biased. I am biased in favor of Apple and its products, as a long-time user. I am biased in favor of products I use and understand well, like FriendFeed, Socialmedian, Strands, Twitter, SocialToo, LinkedIn, Disqus, Lijit, Google Reader, SmugMug, BackType and many more you've heard me talk about. I am biased in favor of the entrepreneurs whom I have had early relationships with through e-mail, by phone, or in person. I am biased in favor of bloggers and other content producers who I believe write well on subjects that have my interest.

In August, I talked about this issue a bit, saying, "If You Look Hard Enough, Conflicts of Interest Are Everywhere". And in the case anything got official, as it did with ReadBurner, I told you all about it.

Even though I like these products, these people, and their ideas, the idea is to continue to be trusted. What liking a product doesn't do is force me to make up things that they don't do, or gloss over clear issues. If I were to say issues weren't there, you wouldn't trust a review. If I were to say a product did something it didn't, my credibility would disappear. But I'm not swayed to like a product because I've gotten paid, because I haven't been. Practically the only items I've ever received from these companies are T-shirts, and while I love logo'd T-shirts like any other Valley geek, it's not enough to flip me to the dark side.

I'm biased, but I'm transparent. I bet you're biased as well. We all are. You can see it everywhere.

Sunday, December 21, 2008

Social Media Advertising: Crossing the Streams

By Eric Berlin of Online Media Cultist (FriendFeed/Twitter)

Can you hear it? That's the sound of social media companies scrambling, hustling, and scraping to find new revenue-generating models to beat back the hounds of this wacky economy.

Most recently, we're starting to see talk of experimenting with the insertion of advertisements into what users normally expect to be ad-free content streams. In movie metaphor terms, it's time to look to Ghostbusters for inspiration.

As we all know, Dr. Peter Venkman (played by the amazing Bill Murray) advised that the streams of the ghostbusting team's Proton Packs were not to be crossed… right up until the end of the movie, when they had run out of ideas in defeating the Stay Puft Marshmallow Man. It was a classic "it's so crazy it just might work" movie moment.

Are some social media companies reaching a similar "crossing the streams" decision point? For instance, Techmeme, the well-known technology news aggregator, has actually employed the practice of inserting "sponsored posts" into its stream of algorithmically generated story and blog post clusters for some time.


Techmeme Interweaves Sponsors' Posts With News

With a clear label of "sponsored post" and a different colored background on what is essentially an "advertorial" ad unit, Techmeme is leading out a new form of online advertising that other social media companies might be looking to adapt.

A story on TechCrunch this week called Digg's Sorry Revenue Stream, And Rumors Of An Experimental Ad Product was illuminating in a number of ways.

Key takeaway:
One experiment Digg is working on, says one source close to the company, is a self service advertising product that will be somewhat similar to Google Adwords, but with a twist. The product would insert advertisements into the Digg news stream (presumably clearly marked). Where those ads end up, and how much an advertiser pays per click, would be based on user feedback.

So users would have the ability to vote on advertisements in the same way they vote on stories. The better ads, as determined by Digg users, will get more prominent placement and a lower cost-per-click.
I think allowing users to vote on ads that they like and have them "bubble up" to the top, social news-style, might be a rather clever addition to the Digg platform. That said, we can imagine that some of Digg's famously rowdy commenters would be incensed at the prospect of any advertising inserted into an area previously set aside for user generated story submissions.

How incensed is hard to say, but we can look at the reception that ad network Magpie received on Twitter to get an indication. To be fair, Magpie is an independent service - it has no formal affiliation with Twitter - that offers to sell "tweets" on Twitter user profiles. So its revenue model aims to cut microbloggers in on revenue, and not Twitter itself. The reaction thus far from the Twitter community has been pretty negative, and indeed signs are that Magpie is gaining very little traction.

That said, it's perhaps doubly interesting that Twitter CEO and co-founder Evan Williams would mention inserting ads into Twitter streams as a potential revenue option during a recent interview. However, he noted that they are "looking into other options." Maybe it'll come down to a "don't cross the streams" decision?

It's worth considering if Internet audiences will be generally more accepting of seeing "sponsored posts" on Techmeme – or indeed inserted into the "blog stream" on well known tech blogs such as Mashable – versus user generated content-driven platforms like Digg and Twitter.

In any event, social media companies are going to be looking for new ways to keep the lights on and servers humming, and that will likely mean seeing more forays into previously ad free content zones.

What's your opinion on crossing the streams?

Read more by Eric Berlin at Online Media Cultist

Monday, December 15, 2008

Social Media Marketing - Who, What, When, Where, Why and How?

By Mike Fruchter of MichaelFruchter.com (Twitter/FriendFeed)


If you are an individual or small business who is looking to get started with social media marketing, you have your work cut out for you. You must first examine the landscape to see if marketing, using social media is even a viable solution. If your current or potential customers are engaging online, odds are you need to be as well. Before you get started, have you asked the right questions? Done all your homework? Using the five W's, and the occasional H, I decided to put that into the context of social media marketing.

1) Who:

The keyword here is demographics. Who exactly are you trying to market to, single women, generation X'ers, parents etc? What are their household incomes, and can they afford your product? By knowing as much as you can about your customer's profile, you can target your marketing efforts more efficiently, and minimize wasted costs. This is more true with a niche product than anything else.

Advertising budgets are tightening today more then ever. You need to spend that money more wisely and effectively. Consider buying advertising on blogs, as opposed to a traditional and rather costly PPC campaign. First and foremost, search engine traffic is still king, but you can not rely on it solely as your pot of gold. Staying consistent with your marketing efforts in social media by default increases your visibility in search. Play your cards right and you can eventually start to lower the cost ofPPC spending, and in time totally eliminate it.

Don't get me wrong, social media is not the viable and end-all solution for every business. Search engine traffic, whether it's organic or paid always needs to be a top area of focus and never overlooked. The fact of the matter is, when people are looking for something, they resort to search engines first. How will you fare in the search results? Social media is an excellent link building tool, learn some of the SEO basics and be consistent, and you will achieve better search results.

The other part of the who, is who are the influencers? In social media we refer to influencers such as Robert Scoble, Chris Brogan,and Louis Gray. Build relationships and target the specific thought-leaders that are related to your industry. Influencers in their own respect have broad reach and influence over potential buyers. Influential marketing is a gateway, seed it small, and it will grow fast. Remember the name of the game with this is time, forming relationships meaningful at that, takes plenty of it. In addition to influencers, target and focus efforts on the "New Influencers ". These are power social media consumers. These are the prominent bloggers, people who upload the most videos to YouTube, the power diggers and stumblers. They are the most vocal and active on their social networks and so forth. They have to some extent a loyal and large following, and with that comes a certain degree of power and influence. YOU might even be a new influencer, and you don't even know it.

2) What:

What are the tools, mechanisms and channels that you will use? A grassroots marketing campaign will require pulling out all the stops. Starting a blog is mandatory, choosing the platform is next, WordPress or Blogger, self hosted or service hosted? What social networking sites/communities should my business be participating on, Facebook, MySpace, or both? Which is better targeted for my product? Do we need to set up a Twitter account? What will the Twitter account be used for,conversing or broadcasting? Explore and try new channels, podcasting, and creating original video are some examples. Something I touched upon in the beginning was search engine traffic. What is more effective cost wise, time invested in pay per click campaigns, or time invested with human social media efforts, or both? What channels, if any should we spend marketing dollars on, banner/text links on blogs, ads on Youtube, on Facebook, branded audio spots on podcasts ? I'm sure I'm leaving plenty out, but you see where I'm headed on this one. Find use and learn the essential tools that you will require for publishing, promoting and listening.

Consider what amount of time you are willing to commit to your marketing efforts. What are your objectives, a hard sell, creating brand awareness, buzz, or recognition? What markets am I going after? Should I focus on international, domestic or both?

3) When:

The time is now. A majority of smaller and medium sized businesses are not engaging in social media. Are you one of them? Don't hesitate any longer. Your competitors are using it and there is no reason why you shouldn't be too. The traditional and costly marketing methods such as print are becoming less and less effective. Consumers have adapted with the times, so don't get left behind. You can achieve better results with a social media advertising campaign for a fraction of the costs, compared to old school traditional ways of marketing.

4) Where:

Where is the conversation taking place? Where should you respond and engage on, Twitter, your blog, Facebook? Where should you create outposts? Go where the existing and potential user-base is and establish a presence, it's that simple. Never spread yourself too thin, but don't go overboard either, otherwise you end up creating more work than really needs to be done.

5) Why:

The question should read more like why not? Your customers are using it. With the current economic crisis, a recession, and no sign of things getting better, marketing budgets are being slashed. What are your alternatives? I have already talked about some of the positives, such as it's cheaper and more effective than the old school traditional ways of marketing. Social media, because of it's medium, brings globalization to your company's front door. It's easy and anyone can do it, just as long as they are willing to invest their time into it by learning, and participating. Your competitors, especially the ones in the know, are already are using social media. Have you noticed? Social media is about conversation. You want people talking about your product, spreading the word, and creating brand awareness in the process.

6) How:

Social media is not a rush job. It's not about creating a website, Twitter or Facebook account and calling it a day. Don't be fooled or mislead by the hype, the tools are only the facilitators of the message. Yes they are important, but without a basic understanding of how to use them, they are in effect rendered useless and become nothing more than a one way megaphone, with no one listening at the other end.

I will end with a little more food for thought:
  • How are we going to participate?
  • How are we going to create openness?
  • How are we going to create, find and react to the conversation?
  • How do we find and create community around our product?
If I gave you the answers to all of these questions, I would have nothing else to write about:)

Image by Leo Reynolds under Creative Commons license.

Read more by Mike Fruchter at MichaelFruchter.com.

Sunday, December 7, 2008

ESPN.com Launches New Beta Site, Reduces Ads, Integrates Video


ESPN.com's New Beta Site Is Tighter, Has More Features

For more than a decade, ESPN has been on the cutting edge in terms of experimenting with Web site layouts, integration of JavaScript, Flash, and video. While not every iteration to the valuable Web property has been met with excitement from its fans, the worldwide sports leader is looking to again make change, in an effort to declutter its front page, while continuing to add more features, and in an interesting move that speaks volumes, they have done away with banner ads on the home page - likely ceding that the run of site ads were not driving the revenue needed in exchange for damaging the site's look and feel.


The Current Site is Mostly Text and Links

The new beta site, made available to the site's paid "Insider" members starting earlier this week, is said to contain a "larger video player, advanced score boards, improved search and better navigation".


The Current ESPN.com Toolbar


The New Beta ESPN.com Toolbar

Many of the online sports junkies I congregate with via Sports Blogs Nation and Ballhype have two major complaints with the current ESPN.com Web site. First, there are too many ads, in just about every nook and cranny, and second, the site's embedded video player automatically starts playing, making the first move to turn it off, even before reading the day's news and articles. If the new beta site is to be believed, both of those issues are addressed.


The New Beta ESPN.com Shows The Day's Scores

The new beta site separates the online articles from the videos through the use of tabs, showing "Top Stories" and "Top Videos". This both tucks away the video, but also offers, as promised, a larger viewing experience, if that's what you're looking for. And, thankfully, instead of wasting valuable screen space in the top center of the page with an unrelated banner ad, the network has delivered with a full scoreboard of the day's events, much like their scrolling ticker seen on all television broadcasts on their family of sports networks.

The new redesign also reduces the total number of top sections, which had become burdensome in the current version of the site. What had once been a single toolbar with eighteen different menu items, each with their own dropdowns, has been replaced with seven top level items, and a subhead menu for the major sports.

While ESPN has been considered a leader in terms of embracing the Web and making it a major part of their editorial, alongside their magazine and multiple channels, not all their Web ventures have been pretty. Part of the Disney/ABC family, ESPN was part of the ill-fated Go.com experiment during Web 1.0, and has also previously integrated as a big partner MSN. The various domains have strayed from the basic ESPN.com to ESPN.Go.Com, and long ago, ESPN.Sportszone.com, which now redirects to the main Go.com page. But the latest move doesn't smack of such blatant commercialism. While ESPN.com clearly knows how to make money, they've killed the center banner ad, and tightened up the content, which should make its most loyal customers, the Insider team, happy. Should they deliver enough positive feedback, the new beta should make its way to the standard site soon.

Wednesday, September 17, 2008

Bret Taylor on FriendFeed's Road to Monetization, Early Surprises

This evening, at a panel on lifestreaming put on by the MIT/Stanford Venture Lab, FriendFeed co-founder Bret Taylor spoke about the popular aggregation and lifestreaming service's early months, explained what he and the team are trying to do through developing the site, and what we can expect from FriendFeed, as the company builds plans to monetize and further expand its growing user base. The panel, moderated by All Things Digital's Kara Swisher, also saw participation by angel investor Jeff Clavier of SoftTech VC, Leah Culver of Pownce, and Loic LeMeur of Seesmic.

I attended the session and took notes via laptop, so all quotes are "best effort."

Bret's presentation stated that FriendFeed, which currently supports 43 different Web services, and is now tracking greater than 100 million individual entries, is designed primarily to enable content discovery and social media consumption through a shared experience with friends and peers.

Growing Crazy Fast After a Slow Start

In front of an audience at the Stanford School of Business, Bret, in a quick presentation utilizing Apple's Keynote, recounted the team's reaction to the site's initial traffic spike following launch coverage in the New York Times and TechCrunch which evaporated in mere days. He said it took four months to return to the initial activity level, in between which the team went through varying stages of excitement, strategizing, realism and depression, while they openly questioned what they might have been doing wrong - having a history of successful product launches at Google. However, not too long later, traffic began to balloon in the beginning of 2008, reaching a hockey stick spike from March to June, during which the team's excitement turned to sheer panic, as they looked to scale their product and maintain speed and reliability amidst unprecedented demand.

Initial Development Missteps or Oversights

When FriendFeed added the ability to "like" items and make comments to a friend's feed, it opened up the opportunity for significant discussion among peers, and helped catapult the site from a simple aggregator to a destination site for many. But Bret admitted the team didn't anticipate the success these additions would have, and they didn't put as much development work into fleshing out those features.

As he said yesterday evening, "The discussion parts of our site have been almost the sole driver of our growth. It's been interesting to watch, and in retrospect, it was obvious. It was initially one of the underdeveloped parts of our site."

Also, while FriendFeed has been lauded for their highly-capable "hide" features, letting you block individual posts, posters, or services, there have been many requests for better ways to filter through the noise and find information that's most suited to your own likes and dislikes. But so far, the team is still playing catch-up. Bret added, "For the one year or so we have existed, we put less into relevancy and more into filtering tools. We are working on relevancy now. It's reflected in the different ways that people use a feed reader, as some see it as a new e-mail box and others ask to show the things that are interesting right now."

Handling Competition From All Sides

Swisher asked, as many do, if there are too many sites in the lifestreaming space, as there were too many calendaring sites in the Web 1.0 timeframe. She speculated that by the time the Web 2.0 shakeout occurs, that maybe three will survive and one, like Google with horizontal search, will end up with the lion's share.

Bret said that the lifestreaming space is a new category, and that it was "healthy" for many people to be working on "the content discovery problem". With the advent of syndication formats like RSS and social networking, he said subtle differences would be very important, and that on the Web, there is a history of natural fragmentation that enables niche sites to succeed. However, he did warn against sites adding so many features that they miss their core position. He said, "Every application grows until it has e-mail. Every Web site grows until it has all the features of a social network."

On Staying Independent

Every few weeks, somebody seemingly speculates that FriendFeed would make a great acquisition target for somebody, and the name that almost always comes up is Google, where the team's co-founders were last employed. But, as he and Paul Buchheit have consistently said, Bret again repeated the plan is not to sell the company, even if the road to business success isn't 100 percent clear.

"We're not interested in selling. We wanted to forge our own culture, to create a sustainable company," Bret said. "We have different perspectives on how to build a company of scale, and we want to build a company that scales."

Finding an Eventual, Sustainable, Business Model

Bret said the $5 million in seed funding FriendFeed raised this Spring was done anticipating the economic downturn, enabling the company to have a long runway before seeing the cash disappear. The team's hope, he said, was to find an advertising-based solution that delivers revenue without damaging the user experience. As he said, in response to questions from Kara Swisher, "there is a huge spectrum in the effectiveness of advertising," from ads that have high click-through rates, like those from Google AdWords, to the less-targeted AdSense, which delivers low conversion rates and "lots of accidental clicks." For FriendFeed, he speculated the site was "somewhere in the middle, but hopefully on the good end," where if links were mixed into the service that were sponsored, they would be done in line more with users' experience than image ads adorning the sides of the browser.

While Swisher coyly teased some of the panelists about their being "pre-revenue", Bret said one of the keys to launching a successful business model in the Web 2.0 atmosphere would be to not do so too early, and when they do, to do so in a way that is both quantifiable and analytical. "It makes no sense to try and monetize when you have only 2,000 users," Bret said. "It's too early and the early adopter audience does not reflect the behavior of mainstream users." He cited the early successes of Overture and Google AdWords as forging the quantifiable advertising market, but admitted they weren't yet sure how ads on FriendFeed would work. "We want to experiment enough to not run out of money before having to raise more, or we will have a sustainable business," he said.

What's Coming Next

Bret clearly hinted at a move to improve relevancy, and help users find signal in the noise. The team added "top" posts of the day not too long ago to help use the wisdom of crowds, and that feature could be improved. It's clear ads are coming, but maybe not immediately, as the company continues to try and scale in terms of users before worrying much about revenue. He also gave praise to the search engine that returns results just from your friends, but said it could be improved, as missing a result in FriendFeed would be much more impactful than a missing search result in Google. But he also spoke of "focus" and doing "one thing well", so it could be that those of us asking for messaging features aren't going to get our wish.

One thing you can expect FriendFeed not to do is to immediately give in to the demands from the early adopter tech geek set, who can at times be very demanding. While Seesmic CEO Loic LeMeur said the "tech geeks and geek press would have you make products for the geeks," Kara Swisher helpfully added that group was pretty small to begin with. "It's 14 slightly-overweight white guys," she offered.

Tuesday, September 16, 2008

My Blog Is Less a Destination Site than a Conduit

By now, we've all likely grown used to the fact that RSS readers don't often see a blog's redesign. For those who choose not to click through and leave comments, there's little reason at all to visit a blog directly any more, considering it's possible to power through dozens or hundreds of feeds in a feed reader, be it Google Reader, BlogLines or any other. With tangential services like Disqus enabling me to even engage with readers via e-mail, instead of through the blog, there's now even less reason for me to even visit my own site.

At this point, I probably, on most days, can't even tell you my daily RSS subscriber count, visible on the blog, or see the MyBlogLog widget's most recent visitors, as I'm using my blog as a way to project content outward - to RSS readers, to aggregators, like FriendFeed, Strands and Social Median, and to connect with readers via e-mail, using Disqus. It also, via RSS, powers popular sharing sites, like ReadBurner and RSSmeme. But none of those activities, with the exception of comments, require actual visits.

While it's still important to be sure the blog itself loads quickly, for those who view it for the first time, or for those who do click through RSS and choose to leave a comment, the look and feel of the blog is less important over time. I expect fewer people are typing in the louisgray.com URL and viewing pages directly, as they accumulate feeds and read more, and see the blog's UI more as a shell for content than a destination where a reader would spend a good amount of time. At this stage, the blog is simply a point in time for the content to begin its journey.

The life of a post, as always, for me anyway, starts out in e-mail, where it's authored. Then it's copy/pasted into Blogger. Then I visit the site, quickly, and ping FeedBurner. Subsequently, I refresh the blog feed in FriendFeed to keep it up to date, and send a TinyURL copy to Twitter. At that point, I really don't have to come back. Should someone opt to comment, I can reply via e-mail in Disqus, and even Delete unwanted spam or other messages.

The bulk of the activity around the blog is pretty much happening someplace else - making the number one purpose for the blog site itself to convert new visitors into signing up for the RSS feed. So if they bump into the content, via Techmeme, Digg, StumbleUpon, ReadBurner, FriendFeed, or anywhere else, they'll sign up and take in my content in the way they choose. But my blog is not the destination. It's a point in the journey. For those who are relying on ad revenue to come through via page views, this won't be good news, but that's what I see happening. For me, as I'm not trying to convert visitors into cash, this is the new reality, and we're fine with you just signing up, passing through and being part of the conversation as you choose.

Saturday, August 2, 2008

I Got a Mac OS X Trojan and Infected CenterNetworks. Oops.

As a sometimes smug Mac user for the overwhelming majority of my computer-using life, virus warnings, anti-virus software and security updates were always something "those other guys" had to deal with. Using my Mac, I would even have colleagues send me attachments from their Windows machines which they thought were viruses, so I could open them up in a text editor and see what mischief they had intended to cause. But today, I realized my laptop had somehow acquired a rare trojan that does hit Mac OS X, and the results of the bugger were actually more harmful for Allen Stern of CenterNetworks than they were for me. Oops.

This morning, Allen Stern presented a new video following a press conference he held that discussed his take on the "firing" of my son Matthew, who had secured a short-lived position in CenterNetworks' San Francisco bureau. As usual, Stern's tongue-in-cheek humor and deadpan delivery were very good. The conclusion reached by his video was that Matthew would be compensated out of court with the delivery of an "I love New York" t-shirt, and I quickly commented on his site that we agreed to the settlement.

But amusingly, having posted my comment, I noticed that virtually all of the ads on Allen's site were for pills that solved erectile dysfunction, and all the banners were rotating images of Viagra, Cialis and Levitra, which made no sense on Allen's tech blog, and had absolutely zero to do with his story on my kid. So, I made screenshots, and jokingly sent a note to FriendFeed, saying, “I Just Hope the Money from these Ads Keeps CN "Up".


CenterNetworks' Ads Were All In Pill Form for Me

Allen, looking at the pictures and then back at his site, thought I was joking. But I wasn't. When he realized I was serious, this set off a flurry of calls by him to his advertising partners, swapping out of ads, and testing both on his side and mine, as we tried to figure out... was it him, or was it me?

Turns out it was all me, and separated by 3,000 miles, I was causing Allen's blood pressure to rise for no good reason. It turned out that at some point, recently, some file I downloaded hijacked my DNS settings on my MacBook Pro, and selectively overlaid his banner ads from Tribal Fusion, on both CenterNetworks and HTMLCenter, with these stupid Viagra ads. Meanwhile, my wife's laptop was fine, showing normal ads, while I was viewing the world through an odd filter.

So, I did some searching on the Web and found I had likely run into one of the few pieces of known Mac OS X malware out there, a Trojan, which disguised itself as a clean file. So, I decided to finally get some real anti-virus software to take a look at it, and found a solution from Intego called Virus Barrier, which looked a lot more Mac-friendly than dreck the Symantec guys offer. Sure enough, after paying to buy their software, installing, and rebooting, the offending file was found, masquerading as a QuickTime extension. The Intego software let me delete it, and all of a sudden, all was well. Allen's site now shows normal ads, and he doesn't carry the mark of a dope dealer.


Intego Virus Barrier Going Through My Files



Aha! A trojan has been located and destroyed!

Of course, this now raises the question... how did I get this on my machine? Some of the stories I read said the trojan could have been hiding in the form of a fake card game application, and others, as a tool that lets you watch adult videos. So... neither one of those makes sense. But despite that mystery, the good news is that I think it's all resolved. I have a product that will protect my Mac in the future if anything like this happens again, and I still know Allen Stern is on the up and up - a great blogger with a good sense of humor and values as well. It's just disappointing my stupid error somewhere dragged him through the mud through my "learning process".