October 2007

There was a report out of Gartner late last month that estimated between 46 percent and 83 percent of Internet browsers/visitors/whatever-you-want-to-call them now engage with “consumer-generated content” at least once per month.

Gartner’s definition of this content includes blogs, podcasts and wikis as well as all manner of rating systems, recommendations and user reviews.

Not surprisingly, teenagers were more likely to engage with these sorts of media. Moreover, the percentage of U.S. adults who engage in this type of content at least once a week was lower than their counterparts in either France or the United Kingdom. Gartner suggests that this may be due to the novelty factor abroad.

Separate, but similar, research from In-Stat earlier this year likewise points to an impending explosion of worldwide revenue from what it calls “user-generated content,” most notably videos you’d find on YouTube. Last year, it figures $80 million in revenue was attributable to this stuff. By 2011, however, it predicts sales of around $1.6 billion.

For creative types like myself, the sorts of people that the business side increasingly consider as just so much overhead, these numbers are both scary and scintillating.

I don’t know of any journalist, no matter whether their work takes the form of a lengthy feature article, a video dispatch, an opinion column or a review, who doesn’t love hearing from someone who is reading or watching what they have to say.

I’ve had people walk up to me in airports to take issue with something I wrote, which is a little scary from a privacy standpoint. But from a professional level, it’s a thrill. “Hey,” I think, “THEY READ ME. They care.” Because, after all, most journalists get into the profession in order to touch people, in order to share information. In the world of print, our words mostly went into this void. Lots of guesswork went on. Focus groups were conducted.

Online, of course, everything has changed. I receive daily statistics for the green technology blog (“GreenTech Pastures”) I write on ZDNet. In an instant, I can see how many people are reading about certain topics; which strike a chord and which fall flat. The rating and comment system, meanwhile, tells me if I’m doing my job thoroughly enough. Often, I will think of an entirely new subject to write about as a result of a post. Or, I’ll kick myself to do a little more research if I’m missed an angle.

In my past life as the editor of channel news publication CRN, I made more contacts as a result of my editorial columns and video Webcasts than any other activity during my close to 18 years of covering the high-tech distribution channel. Because I had opened myself up in some way, readers felt like they could approach me.

Which brings me back to the real point of this column and the question that publishers love to ask themselves when staring at spreadsheets that detail declining print advertising sales: Is this shift toward user-generated content a long-term phenomenon? Can the voice of our users/readers/visitors replace editorial resources? Can this movement be “monetized” in some way?

The answer to all of these questions, in my opinion, is a qualified “Yes.” But before you go firing all your writers and content creation folks, here are some simple realities.

As Gartner notes, many folks (especially adults) participating in the user-generated media movement aren’t actually creating what we’ve come to accept as “content.” That is, a story, or a video dispatch or a photographic montage. It’s important to remember that “content” in the user-generated media movement can be many things. It can be ratings on stories, feedback dialogues about a product or services, or about the most popular searches on a Web site. The fact is, though, people come to sites for a reason. And SOMEONE needs to be giving them that reason. We currently call those someones “editors” but they’re increasingly taking on the role of community “moderators”—monitoring feedback, analyzing trends and creating more reasons for the dialogue to continue.

Then there’s the whole matter of time. I don’t know about you, but keeping up with my Facebook profile and my LinkedIn Network contacts is very time-consuming. I visit both horribly infrequently, mainly because I have a real-life husband and a real-life hobby (a cappella singing) that takes up plenty of my non-work time. I haven’t even dreamed of setting up a MySpace page yet and my blogs (yes, plural) are challenging to update on a regular basis. Personally, I believe there is bound to be an adjustment.

Full disclosure. I LOVE magazines. I love touching them, looking through them, curling up with them on the couch. That will never change. But I also find the ongoing transition exhilarating. I feel like what I write is a better reflection of the community I’m interacting with; that, in turn, generates more feedback.

I believe that what most people look for in their media experience—an honest voice. And honesty, I believe, is what user-generated content is all about.

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Nike and others have discovered that they can increase customer retention and affinity by communicating directly with customers rather than through traditional “interruption” based media. Companies that use Private Media and permission based marketing techniques are seeing positive results; and are shifting their advertising budgets away from big media companies to direct interactions with customers and prospects. This Private Media strategy has been at the foundation of King Fish’s approach since its founding, and continues to be successful for our clients.

I thought this fact and quote from the story was very powerful:

Last year, Nike spent just 33 percent of its $678 million United States advertising budget on ads with television networks and other traditional media companies. That’s down from 55 percent 10 years ago, according to the trade publication Advertising Age.

“We’re not in the business of keeping the media companies alive,” Said Trevor Edwards, Nike’s corporate vice president for global brand and category management.  Mr. Edwards says he tells this to many many media executives. “We’re in the business of connecting with consumers.”

Read this story from a New York Times article illustrating how Nike and other leading marketers are using Private Media and bypassing traditional media channels.

This is just the beginning of what will be a long term shift in strategy.  Thanks to advances in wireless technology and the maturation of social networking web tools, we will see more and more companies speaking directly to consumers without the filter and expense of media companies.  This does not mean that traditional media companies will disappear by any means.  However there will be a shake out and only ones with the best relationship with their readers/viewers will survive.

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I confess that for me, presidential political races are right up there with American League pennant races. After 175 games or so this season with the Sox ultimately victorious over the Rockies, I can switch gears to the race for out next President.

In 1999, I worked on the John McCain campaign for the Republican nomination in Massachusetts. It was wildly interesting to be a small part of the election process, and one of my top experiences was meeting and speaking with the Senator for several minutes as he prepared to give a speech in rural New Hampshire to about 100 local citizens.

Fast forward to 2007 and an election where campaigns are increasingly fought through video and other electronic means. Some videos are professionally produced by the campaign staff and worthy of Cannes consideration and others are clips from cable TV that rely on humor to help us remember what ought to matter in a candidate - service to our country and strength of character.

 The great thing about video is that there is always another side to the candidate they hope you don’t see, but the video camera is always on and can capture awkward moments. In this example, while I like to think he was in fact reading notes, however, that may be a tough sell.

Or you could see his humor being lost on an audience of students asking about age.  On the other hand, voters are getting a raw glimpse of John McCain that they would not see on the Sunday talk shows. .

The Senator likes to talk straight, “warts and all.” And our media’s there to capture every word, every slip, every sound bite. The new web video culture gives candidates the opportunity you speak directly to the people without the filter of traditional media. It also gives campaigns the ability to post positive clips of their guy, and negative clips of their opposition. But while watching the quick-hits and sound bites, don’t forget to peel back the onion a bit, and look at the qualities of character, integrity and service in all of the candidates.

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I hate Volkswagen. No, I take that back. I loathe Volkswagen.

Now, mind you, when I purchased my 2000 VW Passat seven years ago, I was in love with it. The sunroof, the luxurious leather seats, the Tiptronic transmission, the deep blue exterior – I was in heaven. I felt like I was driving a truly magnificent piece of German machinery.

Then, two years into my ownership of my beloved chariot, and, coincidentally, at the end of my warranty, things started to go wrong. The check engine light came on. I took it in to be fixed. They turned the light off and told me nothing was wrong. It came on again the next day. I took it in. They turned it off and told me nothing was wrong. Rinse and repeat for five straight years.

I’ve had the secondary air pump replaced three times and it needs to be replaced again. The dealer’s current explanation for the check engine light’s annoying glare (and deafening beep if I accelerate quickly) is that I drive in puddles, which is causing water to get in the pump. I told them if their cars couldn’t withstand the rain, I’d be better served investing in a goat to transport me to work every day.

Curiously, there is one thing that has prevented me from pushing my car into the sea. It arrives in my email inbox every month and despite my addiction to deleting emails, I don’t delete it. Rather, I open it up and read every piece. It’s the monthly VW newsletter from my local dealer, rife with articles about the newest 2008 Passats (“offering more value than possibly another any European sedan,” I am pleased to read) coupons for oil changes and tips on where to find the best fall foliage.

I love this newsletter. I’ve read every one, top to bottom. I click on every link, poring over the articles on engine upgrades, photos of the newest models, and pieces on where to go whitewater rafting. I mentally calculate what it would take to trade my car in for a new Jetta or Toureg. Temporarily, I forget how frustrated my car has made me, how I routinely beg friends and family to steal my car in the night, how I’ve denied the car its overdue inspection sticker for the past three months. Every month, I want a new one, a better one, one that will whisk me away to the best theme park in New England.

I’m no stranger to custom publishing. We create customer retention newsletters just like this at King Fish Media. In fact, our work for Compass Bank just received a MIN award for integrated marketing. I know this is all created for my demographic. But, working for a marketing firm, I usually feel I am immune to marketing methods in my personal life. I’m surprised at how powerful one piece of communication, so carefully crafted, so compellingly put together, can make me want to take another drink from the tainted water fountain. But, it does. It’s working. Quality, relevant content delivered to the right person can clearly have a magical effect. VW has created its own private media channel for me and for my fellow VW owners, using custom content to help build a high-affinity relationship for customer retention.

So, now it’s only a matter of time before I walk into my local dealer with a problem and walk out with a beautiful new solution. For two years, anyway.

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