Posts Tagged ‘AOL

by Ben Elowitz

How much social traffic did the top 50 web publishers attract in March?  The results are in – and it is a mixed month.

More Social Traffic

Measuring by total visits, March was the second highest month on record for social traffic to the top publishers.  The number of social (Facebook + Twitter) visits to the top 50 grew by 2.9% in March to 403 million.

But a Smaller Piece of the Pie

Volume growth aside, social’s share of traffic to the top 50 dropped slightly, dipping by 0.3% in March.  That’s because even while traffic from social grew, it didn’t grow as fast as traffic from other sources.

What gives?  It’s possible that each and every one of the top publishers’ social media teams was distracted last month by March Madness and solar flares.  It’s also possible that Facebook’s aggressive mobile push is putting downward pressure on this measurement (the comScore data we use for benchmarking overall site traffic doesn’t include mobile traffic, alas).

The Contenders:  NBC climbs, Us Magazine falls, and Wetpaint stays on top

The solar flares must have been particularly distracting to one publisher’s social team: Us Magazine continued its downward slide, falling out of the top 5 entirely this time after dropping last month from 3rd to 5th.

NBC is on a roll, climbing up another rung (after jumping two spots ahead in February) to #2 on the leaderboard.  NFL also ran the ball for an impressive number of yards, moving from #9 to #5.

Wetpaint Entertainment continued to hold a definitive lead, outperforming the closest rival by 9.3 percentage points.  We’re able to maintain this lead by constantly improving our proprietary social analytics and distribution system through rapid experimentation and a deep understanding of our audience.  The amazing thing is that our social growth has not come at the expense of search traffic.  Indeed, our search traffic has been rising as a result of our social success, and total traffic has recently hit record highs of 10 million uniques and more.

And we’re not done yet – social users are the most valuable users, and we want more.

by Ben Elowitz

We’re back with the Media Industry Social Leaderboard, fresh off the presses with February results.  For any newcomers, the Social Leaderboard is a ranking of the top 50 media publishers by their effectiveness at driving traffic from Facebook and Twitter.

Overall: No Great Shakes

From January to February, social traffic composition was flat, with the average staying at 7%.  The gap between Facebook and Google traffic coming in to the Top 50, which had been rapidly closing since November, froze in February with Google holding on to its 30% lead for one more month.

At the Races: Us Magazine Falls Behind

Only four publishers in the top 10 improved their social traffic scores this month: NBC (+1.5%) took third place by trading places with Us Magazine (the biggest loser in the top 10 with -3%, now at #5).  Break (+2%) and TMZ (+0.5%) leapfrogged the pack of MTV, NFL and MLB, pushing those three back to #8, 9 and 10.

One of These Things Is Not Like the Others

But the biggest mover and shaker was Wetpaint Entertainment.  Wetpaint took an even more decisive lead by adding 7% to social traffic composition since January, vaulting it into the elite group of publishers who, based on Compete data, receive more traffic from Facebook than from Google (in good company with People, Yahoo!, AOL, MSN, Fox Sports, and The Post Game).

With 29% of traffic coming from social, Wetpaint is outperforming its closest competitor by nearly 2x.  Is this a data aberration?  Some kind of leap year phenomenon?

Let me fill you in on the story behind the 29%: over the last two years, we took a gamble by building a new platform for social media distribution.  It wasn’t a sure bet, and not many other publishers were doing it, but we had seen compelling evidence that social was the only way forward for the media industry.

We threw all of our time and talent at the problem, building up a fan base while developing and testing and refining new strategies for delivering content through social channels.  We collected tons of data in real time about the preferences of our fans, and then we leveraged that insight to personalize and program their newsfeeds.

Today, the rest of the media industry is just starting to figure out the value of winning fans and courting likes.  But because of our early investment, we’re already two steps ahead – we’re focusing on what to do with our 1.7 million fans.  We’re delivering over 1,000 posts a week, each one targeted for the right fan with the right content at the right time.

And it’s starting to pay off.

 

 

 

 

 

 

 

 

 

 

 

by Ben Elowitz

In yesterday’s Media Industry Social Leaderboard, I noted that leading web publishers on the web saw a staggering 17% increase in their social traffic from November to December.  These top 50 websites are now averaging about 8 million referrals per month from Facebook.

At this rate, the question asked by Fred Wilson and others is:  how long until social drives more traffic than search?  Based on data from Compete.com, it won’t be long at all.  Let’s look at the specifics.

Facebook Drives Almost As Much Traffic As Google

When it comes to driving traffic, the gap between social and search is already smaller than most realize.  In fact, for every 100 visits that Google sent to the top 50 web publishers in November, Facebook sent 62.  By December, it was already up to 73 visits from Facebook for every 100 from Google.

At the same time, search traffic to these publishers is stable to declining, with Google referrals falling 0.5% over the same period.

So how long until Facebook outranks Google?  If these monthly rates of change were to continue apace, Facebook traffic would outrank Google traffic for the top 50 publishers in aggregate by March of this year!

Seven Publishers Already Get More Traffic From Social Than Search

Shockingly, Compete.com data shows that already seven of the top 50 publishers get more traffic from Facebook than from Google:  MSN, ThePostGame, Yahoo, Aol, People, Fox Sports, and US Magazine.  These seven publishers received in aggregate 12% more visits from Facebook than they did from Google last month.

And that set of publishers has already grown by five from just a month earlier, in November of 2011, when only MSN and ThePostGame showed more traffic from social than from search.

But seven is just a snapshot in time.  Based on recent trends, by the middle of this year, I’d expect it to grow to a dozen publishers or more.

 

Facebook is Over-Taking Google as a Traffic Source to Top 50 Web Publishers

by Ben Elowitz

This article was published as a guest post at TechCrunch, and is republished here for Digital Quarters readers.

Without question, one of the greatest gifts of the human species is our ability to communicate.  We can create, transmit, and absorb ideas with immense freedom in pictures, speech, writing, music, and more.  And yet, from the earliest days of man until very recently, the state of the art of media has been about as sophisticated as cave paintings.

Taking this a step further:

Truly great communicators don’t start out by focusing on their message.  They start with their audience.  They research, observe, and monitor every knowable detail – from background facts beforehand to micro-reactions during the conversation – and adjust their content and delivery precisely, so it will make an impact.  But it’s not like this is a secret formula.  Even toddlers do it, carefully measuring parents’ reactions and perpetually tuning in to the behavior patterns that get them the attention they want.  That tuning is carefully optimized to achieve maximum effect from each individualized recipient.

Meanwhile, media has virtually ignored its audiences.

But it’s finally beginning to open its eyes and ears to them through personalization. I believe that personalization has the greatest potential to transform the media business.

But before we get to that, let’s start with what’s gone wrong in media that has made us blind to our audiences’ cues.

In the world of print and broadcast, there was fundamentally no data about audience interests or reactions.  It was impossible to “read the room,” because the room was pitch black.  If media leaders’ eyes were closed, I’d be hard pressed to blame them; there was nothing to see.

As a result, there were two operating principles that made sense at the time, but which have since become outdated anachronisms.

First, that an editor should serve as oracle for what the audience desires (I call this the “Editor Fallacy”); and second, that content created in that vacuum of data should then be distributed as broadly as possible (let’s call this the “Broadcast Assumption”).

These two assumptions – even though they came from the print and broadcast legacy businesses – have errantly managed to drive the entire Web media mentality.

And the resulting misguided formula – across the board – has been Prophesize, Publish and Proliferate.

The big hope with this media Ouija Board has been that the guesses will be right, and that those who broadcast widely will then draw a big audience.  When the guesses miss the mark with audiences (no surprise there), publishers turn up the volume or amp up the sensationalism. To some degree, this is why the Huffington Post succeeds with its brash and blaring headlines, and it explains why, thanks to Henry, we’ve collectively Blodgetized Web 1.0 media.

But to make room for the new media model of the next 100 years, we need to let these old assumptions fall by the wayside.  The new vision is for media to start doing the work that each member of the audience already does; and that means deliberately selecting and contextualizing the media we each consume.

Putting it simply: media’s great opportunity is to bring the right content to the right person at the right place and time.

And this is where things get very interesting.

Bring Me My Very Own World

The social transformation of the Web has already taken us half way down the road toward a personalized future.

We finally recognize that the Web is made up of people, and Facebook and others have made people and relationships the key “nodes and edges in the graph” of the Web, replacing pages and links.  The social Web is now people-centric; and, increasingly, social is becoming the operating system for the Web at large.  Most impressively, “what my friends like” is already proving to be a good starting point to predict “what I like,” and so much of the Web is beginning to get at least a clue of how to serve us.

Despite this tremendous progress, however, when you go behind the scenes, the Web is still organized by data, not by people. Server data is affiliated with accounts; cookies are associated with Web browsers; and activity logs are tethered by IP addresses.

And yet, as the social revolution has proven, the real value of the transformation has been to stop looking at me as an IP address, a browser, or an account; and to start holistically realizing that I’m a person – I am me.

So, the great opportunity is to move from a Web of sites to “my” Web of me.

Media is at a critical transition point today, because we are about to completely redefine our sense of the audience. Starting now, the audience is no longer one massive opaque agglomeration. It’s not a “them” or an “us”; it’s a lot of individual “me’s.”  (This must-watch from Monty Python paints the picture.)

In this context, the Broadcast Assumption of content creators is completely out of touch with the 21st century zeitgeist.  It revolves around the played-out maxim of “create once, distribute everywhere,” which made sense when audiences were opaque and distribution channels were just big dumb pipes.  But it totally ignores the “me’s” in the audience – when it comes to both creation and distribution.

The bottom line, then, is that media experiences, which used to be one-size-fits-all, must now be customized so they’re just for me.

In other words, the media experience of the future must take a cue from Facebook, and bring my world to me – regardless of where it originated. 

The Six Elements of Ultimate Digital Personalization

Social represents progress toward this vision of fully personalized media, but it’s only one part of the game.

In my view, there are six key elements that contribute to ultimate digital personalization – and these elements are the basis for the ultimate success model in digital media:

  • It’s social – What happens to people close to me is important, because these people are important to me.
  • It’s curated – People aren’t just content sources themselves; they’re also curators. To know me is to know my tastemakers.
  • It’s an experience, not just a stream –Newsfeeds and timelines are a meager start.  Twitter’s 140-character format is great for insiders, but it’s inscrutable for Grandpa. Personalized media should come in all formats – not just a feed.  And it will be more powerful (and more profitable) when it creates an immersive experience.
  • It’s incredibly, incredibly smart about what it recommends, and what it doesn’t – But better than today’s Facebook and Twitter, it brings me the right content, not all content. I trust it to filter the world for me, and to highlight what’s important to me out of billions of pieces of information.
  • It’s self-refining – Speaking for myself, it would know to bring me news about digital media; about my company; about my friends’ reviews of great restaurants in Seattle, LA, and New York; and, in the winter, a helpful article or two on snowboarding tips would be greatly appreciated. It would also turn down articles about Glenn Beck, and turn up the latest find from Brian Stelter. And, before you cry (or scream) “filter bubble,” let’s get it straight that this is what I do already.
  • It’s not just the content that’s personalized – It’s the advertising, too. Today’s version is very primitive: I go to a Web site once and its ads follow me around for weeks. But, instead, my demographics, interests and intent should all combine to inform what ads to show – and not show – me.

After considering these six elements as a whole, I’m most inspired (and encouraged) by Facebook, Twitter, AOL Editions, the recent Flipboard clones, NetFlix, and the potential of a new Siri-powered Apple TV.

Each of these demonstrates the central aspect of this new vision for media: bringing my world to me.

Data Is the Currency of Personalization

To be successful, we all need to be data companies – as data is the clear way to know what our audience wants.  Data is the currency of personalization, and so it is our best path to delighting our audience.

News sites should know by now what topics and stories to program for whom; and no sports site should serve a balanced home page when no sports fan likes all teams equally.

It’s an approach that, of all companies, Yahoo! ‘gets’– and for them it’s been paying huge dividends for a long time.   And so it should for the rest of us.

What this means for media is that it’s not all about the content – instead, it’s all about the audience.  And that means the nature of media has changed.

It’s all about you. It’s all about me.

That’s the digital media future. And we need to start going there today – because audiences are asking (and even demanding) that we pay attention to them, that we really know them, as true individuals.

So, if you’re a publisher, here’s the challenge as you try to create meaningful content experiences today: Each member of your audience – no matter how vast it is – has to become the most important person in the world to you. Or, looking at it in a slightly different way, you have to become deeply involved and digitally intimate on a global scale each and every day.

by Ben Elowitz

Back by popular demand is an updated ranking of the Media Industry Social Leaderboard.  As a reminder, my company and I are obsessively focused on data about the social web – so much so, that we decided to track and publish not only our own results, but those of the top 50 media companies.  This is all captured in the chart below which profiles the top 50 web publishers’ effectiveness at driving traffic from social media.

For the inquisitive among us, you’ll note that we determine the top 50 relevant web publishers; then, using data from Compete.com, we determine and chart how much of their traffic is from Facebook and Twitter.

One important note is that Facebook’s changes in its algorithms launched at F8 impacted nearly all publishers in this ranking – more on that in a moment.

But first, let’s get to the results:


Facebook Traffic Down by 13%.

The first thing you’ll notice is that the bars are lower this month. In fact, over 90% of the top 50 web publishers saw a decreased percentage of their visits coming from Facebook and Twitter in October, with the bars shortening on average by 50 basis points.

In terms of aggregate performance, if you sum the total Facebook visits for all properties, they’re down 7.1% October vs. September, and 12.8% comparing October vs. the pre-F8 August highs.  We believe this trend is the direct result of the F8 algorithm changes made in mid-September.  Savvy social publishers (ourselves included) have been battling to reclaim previous highs since the F8 changes; but by October few had recovered.  The chart below highlights the reduction in referrals from Facebook to publishers over the course of their algorithmic change.


Winners and Losers:  CBS down; People, MTV, Wetpaint up

CBS has continued to fall in social traffic composition (-3.7% September-over-August, -5.5% Octocber-over-September), moving from the top rank on the Media Industry Social Leaderboard to number 4.  Unclear what has caused this decline although one hypothesis could be an increase in either SEO or paid audience acquisition.  If you have any insight here, shoot me a note.

Closer to home, People, MTV, and Wetpaint maintained their relative rankings and have moved to the top 3 spots.  At Wetpaint, we credit our climb up the ladder to our relentless A/B testing that has allowed us to understand what our audience desires in a deep way, and inform our editors with this insight.  The result is that we are creating, packaging, and distributing the right content, at the right time and our audience has voted with clicks, likes, and shares.

by Ben Elowitz

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.

The Value of a Story

19 Oct
2011

by Ben Elowitz

A few months ago, Ken Doctor wrote about the cost of a story, highlighting that financial pressures in media require new formulas to lower content costs.  But my takeaway was different: that the greater leverage point for media success is not in reducing cost, but in increasing value.

And the hard truth is that each and every story has to pull its own weight on the new social Web these days.  Demand for media now comes for the item, not for a bundle.

That said, social networks – led primarily by Facebook and Twitter – provide publishers with increased transparency about what readers consume, interact with, and share; all in real-time.

This makes publishing easier and less expensive, hence more profitable, because editors know exactly what their readers want to consume, and they don’t have to waste time, effort and resources creating content that simply won’t resonate.

To put it a different way: imagine that you have a magazine, and it’s blank. The first page, the home page, might serve as a table of contents. Then, as you click and read along, each page gets filled in – based on what you read on the previous page; the depth to which you read the previous page; and the amount of real-time sharing that you participated in on the previous page. The next page becomes an instant predictive reflection of the prior set of interest signals. This “Magic Magazine” is assembled just for you, and its content is based on your implicit explicit preferences.

I believe that we’re headed in this direction, and we’ll get there, sooner than you might think.

In fact, it’s already beginning. AOL’s Editions product invites each user to thumbs-up and thumbs-down the various topics and sources it shows, resulting in a Pandora-like experience that self-tunes, so that today’s magazine is even more personally relevant to each user than yesterday’s.

And that has the potential to make a more efficient content economy, to the extent publishers can invest in the right content and get it to all the right people.

To do that, publishers must collect all those valuable signals from the audience – which naturally means connecting on the social Web.  The social Web provides robust real-time signals about exactly who the audience is, and what they want.  That’s why, at Wetpaint, we’re maniacally focused on writing our playbook to master this best. Right now, we derive more than 12% of our visits from Facebook and Twitter, which ranks us #4 when compared to the 50 largest Web publishers.  And we expect that figure to double or more over the next 12 months.  (In fact, we’ve been increasing our Facebook traffic by 11% per month.)  We’re benefiting from more than traffic:  the value of each visitor is going up as well, with social visitors coming more frequently and staying longer.

It’s because our social focus lets us serve customers better.  Looking ahead, we’re moving in the direction of hyper-personalization, with customized experiences that seamlessly make themselves felt.

You can see this, to some degree, on the Huffington Post today. They pioneered social channels based on what’s hot, and what’s being shared, and then they reorganized their own pages and published in real-time in order to flow into this.

Old-line media players must adapt here, and in a hurry. From my perspective, Forbes, under Lewis D’Vorkin, is way out front and doing an excellent job showing the way.

With all that programming, what about serendipity? It will still be there. But if a publisher can provide 90% of what a consumer needs and wants, that’s a big value add – especially if the remaining 10% is all the stuff the customer doesn’t know they want yet.

Over the next two years, as social media is continuously refined in new and previously unimaginable ways, I believe that the value of individual stories will keep rising.

And, if we focus on the economics of it, the value of a story online can be thought of as an equation: Page Views x RPM.

But the mathematical symbols in this case are directly representative of two really basic things – how much audience the story attracts, and how desirable the publisher’s full offering is to advertisers.

The roots of both of those are in the content; great content increases both dramatically – albeit over time (The truth is: it takes years of repeat!). And, when we peer out across the long-term horizon, it’s clear that great content that increases audience increases overall reach; and this, in turn, has the compound effect of increasing the desirability to advertisers even more.

My strong sense is that publishers of both old and new media can definitely take advantage of this all-important dynamic by closely watching and assessing the way their consumers interact with content on a real-time basis. In the end, the process should be interesting – and profitable.

by Ben Elowitz

One of the most important questions publishers are grappling with today is whether they oversee a media company or a technology company. In the following article, which appeared originally in my Media Success newsletter and was subsequently republished at AllThingsD, I explain why every media company has to be a technology company. Then I offer several keys to success in the current digital environment, which is dominated by the rise and evolution of the new social Web. Please take a read, and let me know what you think.

Two Truths

Let’s start with two truths.

First, publishers need cutting-edge technology to hook an audience through today’s digital media channels of the Web, mobile, social, and search.

And, second, the breakthrough technology can’t just be about product design – it’s got to go beyond to create distribution advantages on the new connected Web.

One Question

Okay, now that we have the truth out of the way, let me ask you a question:

“Is your company a media company, or a technology company?”

I love getting asked this question.  And every digital media leader I know hates answering it.

Discomfort, Uneasiness, Anxiety, Fear

The uneasiness begins with the mistaken idea that the two are separable.  And they were – back in the 15th century, when Gutenberg first worked his printing magic, and up until a few years ago. But we all know digital technology has inserted itself inextricably into the guts of publishing, replacing ink with bytes and paper with pipes.  And now, over the last two years, technology has transformed the basis of publishers’ relationships with their audience, by connecting them through social operating systems, as we discussed last month.

And yet, our uneasiness escalates to anxiety when we realize we still don’t fully understand the new technology’s potential or impact on our business.

That is a scary thought. 

Technology Drives Media

I think we all need to collectively swallow our fear.  We know every media company must be a technology company today.

In the first generations of digital media, it was easy.  In AOL’s past, technology’s key role was simply to provide basic Internet access over dial-up lines. Today, while that access provides cash flow, it no longer has any strategic value in media.  Similarly, Yahoo’s early technology prowess was applied to create significant products like Yahoo Mail.  But while Mail still drives 73 percent of the audience to Yahoo’s media properties, it won’t secure Yahoo’s future ability to be a great media destination.

These two companies – as well as the rest of us – need to use technology for something more advanced than access and ancillary products. We need to put it right into the heart of media so that we can create breakthrough user experiences and new connections with audiences.

Millions of Ways to Engage

To do that, let’s start by recognizing what’s changed about the medium itself: In analog days, publishers’ products were two-dimensional; and all we had to work with was ink and some paper.  And similarly, distribution was mostly two-dimensional; a subscription list and newsstand sales was all there was to it.

But now, consumers have access to millions of sources at their fingertips, and each one can be rich and interactive, reaching us through several different digital channels.  Both our product experiences and our distribution can be much more intricate – and much more valuable.  And combining the two gives media the chance to do something it’s always aspired to do before, but never been able to.

The Future Will Be Personalized

We have recently become ready for a whole new vision for media.

And that’s giving every audience member the right content in the right place at the right time.

To do this takes a combination of data – from the social operating system – coupled with media’s greatest power, that of creating experiences and distributing them.

To achieve this, though, we need technology to do more than output HTML pages; instead, it has to chaperone customized content to every individual.

This is a big change from the original Internetization of media, which was, like generations of offline media before it: “If you publish it they will come.” That worked when directories like Yahoo and search engines like Google matched consumers to content. But that attitude was passive; and today’s social Web is anything but. So publishers now have the opportunity – and the challenge – of taking charge of their distribution.

The key is using the emerging social Web to get signals from, and connect to, the audience.  And when we do this, we are putting technology in the role of relating uniquely to every consumer in order to create the ultimate experiences they crave.

Now that’s a refreshing concept for media.

Three Ways to Get Ahead

But what does this mean, practically speaking?

I believe the role of technology in media success must embody these three things:

  • Use technology to determine the right content – The social Web offers a wealth of real-time data.  Use it to see what matters to your constituents. Tools like Newsbeat are helpful moment by moment, and article by article. But you have to go further. The great breakthrough of digital media is being able to connect to your audience as individuals, not just in aggregate. No longer do you have to create for a persona or prototypical user; instead, you can create for real users. Media companies need to develop technologies that give them a proprietary edge when it comes to understanding the specific needs of their potential audience; that way, they can serve consumers better. And the opportunities abound. At Wetpaint, my company, for example, we process Twitter, Facebook, Google, and our own site’s data, all in real-time to know what content matters – and to whom.  And yet, we can go much further, to ask and intuit feedback from each user individually. The future is a completely personalized experience from every publisher. It’s not far-fetched; in fact, it mirrors what consumers already patch together with all too much difficulty.
  • Take control of your distribution – Reach consumers with the right content at the right time and place (via Web, mobile, video, social, and search).  Don’t just have your social media team pump the same content from your Web CMS through Facebook and Twitter. Instead, use technology and research to understand the secrets of what works.  Truly engaging your potential audience can improve your results by a factor of two or more.

We’ve already seen this at Wetpaint, and the results are still getting better each week. Our database of everything we publish tracks all the distribution causes and effects, so we know what works. We also pay attention to who the influencers are, with technology that identifies them as well as who their influencers are; and now we’re building a “CRM”-like system to help us know more about these individuals and win them over.

  • Package it into the right experiences – Print is static and flat; but so are too many digital media properties. That’s why I applaud The New York Times for continually looking at how to repackage into mobile apps; and that’s why I like Flipboard, which takes a data-rich, but visually cacophonic, content feed and packages it into an immersive experience.  AOL’s riff of ultimate personalization has impressed me even more:  they’ve recognized that every consumer should get their own Edition – nailing the concept of personalization better than any media approach before. This is the opportunity for each of us now, as we connect with audience members and try to offer them more compelling experiences in return for loyal usage.

Technology Changes Businesses

Let’s circle back to the discussion of whether you’re a media or technology company.

By its very nature, digital publishing is a technical medium. But, beyond that, what makes technology interesting isn’t its ability to carry bits; it’s its ability to change businesses. And we need to change our own by updating our sense of audience, distribution, and experience creation to provide thousands of times more precision than media ever has before.

When we do that, we’re making the content thousands of times more relevant. And I believe that’s how you build a thriving digital media business in the next decade.

 

 

 

 

by Ben Elowitz

I have a question for Jonathan Tasini, who is leading a $105 million lawsuit on behalf of thousands of uncompensated bloggers against The Huffington Post.

If you and your litigious colleagues are so good, so valuable, and so organized, why don’t you launch your own online media venture to out-compete HuffPo?

I’m sure you have your reasons – and, of course, initiating a lawsuit is so much easier than starting a digital publishing site from scratch.

But, let’s get real.

Blogging isn’t free-lancing, and it’s hard to imagine that any of the contributors who sent their material to HuffPo ever thought it was. As I wrote several weeks ago, every contributor knew the basis of the transaction: write what you have to say in exchange for being publicized. As always, the prime currency of blogging was fame – not fortune.

So who’s trying to cash in now?

On a broader, more global note: I feel sad for the desperate bloggers who are trying to shake down HuffPo; and I’m deeply sensitive to the fact that  the media world is under pressure and steadily shrinking. But Tasini and his fellow litigants look like starving dogs scrapping for a shred of meat. It’s unseemly and unproductive.

What’s next?

Will Tasini respresent a class action suit against Endemol on behalf of all American Idol contestants, who were totally exploited as they sought super-stardom?

Or will he represent the tens of millions of users in a suit against Facebook, for advertising against their status and Farmville activities?

Both legal moves would make for entertaining blog posts, and I look forward to the juicy reading!

by Ben Elowitz

I sent the following thoughts to Fred Allen at Forbes.com about how bloggers made The Huffington Post what it ultimately became, and profited all along the way.  For Fred Allen, Lewis DVorkin, and all of Forbes’ leaders, they are taking on the challenge of merging world-class editorial and brand reputation with the new reality that one can’t pretend to serve one’s customers best by writing all the good stuff onself.

Just realizing that the formula needs to change though is only the beginning.  It immediately leads straight to serious questions to conceptualize and implement:  now they have to figure out how to combine two different philosophies – one of proprietary branded editorial, and one of curation.

It’s a live laboratory as we get to see them take on the challenge, even as AOL and Huffington Post have a similar challenge of bringing their own two approaches together.

My comments to Fred are reprinted below; and Fred’s thoughts are here at Forbes.com.

There has been a backlash against Huffington Post in light of its acquisition last week by AOL.

People who were willing to contribute to HuffPo for free are suddenly irritated that the AOL deal creates a payoff for shareholders but not for them.  Since AOL is a publicly held corporate entity, these contributors’ expectations have changed, and now they want to get paid.

It’s a noisy revolt, but I think HuffPo’s dissident contributors are waving spatulas in the air, rather than guns.

Underlying these revisionist claims of exploitation, one thing has been clear from the get-go: The dominant motivation of the bloggers who have posted on Huffington Post has always been far more about narcissism than altruism.

The reason Arianna Huffington was able to attract such thoughtful and provocative bloggers in the first place was because her site is a promotion machine. With each new post and blogger added, Huffington’s creation became a more powerful destination. And that meant that the site was even more attractive to the next potential blogger. The choice for a new contributor was simple: Set up your own blog, and patiently hope you can build audience over a period of years, or join the club and get instant exposure. Like the AAA automobile club or AARP, the more members in the club, the greater the value became.

The benefits of joining Arianna’s legions were numerous: Posting at HuffPo offered instant reach, credentialing, and ego gratification. Make no mistake about it, these benefits were valued by contributors all along the way. (If they weren’t, then Huffington Post wouldn’t have any contributors in the first place.) In fact, these non-financial benefits have proved far more valuable to contributors than cash.

Looking back, then, it’s definitely been a win-win: Bloggers built their own value while creating value for HuffPo at the same time.  And in the AOL transaction, absolutely nothing changes that value equation retrospectively—except jealousy.

Now, on a prospective basis, the only question is whether the value received by contributors going forward will be just as great.

In terms of traffic, there’s no doubt that it will be. But the real issue is whether the HuffPo brand under AOL’s auspices will be as valuable when it comes to providing the most important of all of Huffington Post’s assets—the halo of its brand prestige. From my perspective, this remains to be seen.

And, finally, consider this: If The New York Times had acquired HuffPo, would there be a blogger revolt at all?  Absolutely not!

This highlights the greatest opportunity and the greatest risk for AOL and Arianna Huffington. If they can truly enhance the Huffington Post Media Group so that it’s an even stronger and more prestigious media destination, then their pipeline of great content will expand further, because the benefits of contributing will continue to grow. On the other hand, if the brand is diluted down to “old AOL” standards, then all will be lost.

Tim Armstrong was wise to put Arianna Huffington personally in charge of this, because the success of last week’s deal may very well hinge on her ability to promise, persuade, and deliver at a high bar. AOL will be relying on her strength of vision, her standards, and her personal brand to bolster not only the Huffington Post’s brand, but AOL’s as well.

So the real threat to Huffington Post’s contributors is not that they will be exploited; rather, it’s the potential loss of the media machine that has been promoting them for so long.


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