Wetpaint CEO Ben Elowitz on the Future of Digital Media
This week, we made some announcements about our achievements at Wetpaint, and it has prompted me to take a look back at 2011. It’s easy to be proud of the 6.4 million unique visitor audience we have built at Wetpaint Entertainment monthly. It is a significant accomplishment in just 15 months since we launched, and the Wetpaint team has worked passionately to get us here. But even a number like that is, well, just a number. The real value of what we did in 2011 lies in the all the learning we had about how to build, run and monetize a successful media property online.
And that learning makes me feel grateful – because as successful as we have been this year, it’s been against a context of upheaval in the industry. Media is not easy. Old formulas from print and broadcast are no longer working. And even the just-minted generation of seemingly successful digital companies, from Demand Media to Zynga to Facebook itself, are having to constantly innovate to stay on top of the wave that they’re on as they hope to catch the next.
Clearly, the most important keys to financial success in media are building audience and monetizing that audience – and we’ve made significant progress on both here at Wetpaint. Our greatest strength has been the data engine we’ve built to acquire, assimilate, and apply every possible insight about our audience. We learned that smart and targeted analysis can improve everything we do; that lots of rapid experimentation is critical; and that social traffic is far more valuable than search.
We also learned more about the Kardashians and the people on the The Bachelor/Bachelorette than anyone in this world should. Our editors did a bang-up job capturing the liveliness of the entertainment industry and they definitely deserve plenty of credit.
But while all our great content and social mojo would succeed in delighting audiences, it wouldn’t be enough to make a strong business without excellent monetization. And so I’m equally excited to note that as we get ready for 2012, we’ve found that our formula of great content and social mojo is just as valuable to advertisers as it is to our audiences. I’m pleased that we will be working with the team at Cambio Group via their joint venture between AOL, Jonas Group and MGX Lab. Together, we will be serving outstanding advertisers with some of the most innovative offerings around.
With this partnership in place, we are able to turn amazing traffic into amazing financial results. It will mean strength for our model and our company into 2012 and beyond.
But the implications are even broader for the industry, and that’s because we are setting a model that others can follow as well. And that is what I’m most excited about: What media needs most is a model that can be scaled and repeated – and our latest results make it clear we are on the right track to build it.