VIDEO: Rebooting Media Think-Tank: Paid vs. Earned Media

Paid vs. Earned Media is the third and final video of our Rebooting Media think-tank series.  This time we asked:

What are the implications (and opportunities) of social web distribution eclipsing paid impressions?

See our thought leaders tackle this question and read conversation highlights below.

 

You pay for earned media, too.

There is no earned media without paid media.  Social network distribution hinges on quality content at the outset, which means that investing in your content before you publish it in the social feed is crucial.

“People loved the Old Spice ads.  They were great and funny and they blew up on YouTube, and there was a lot of earned media behind that.  And none of it would have existed if there wasn’t a TV spot that was made and bought and placed and that was very, very good.” —Greg Clayman, The Daily

“A lot of the ‘earned’ arguments came from viral sensations wearing as a badge of honor: ‘we spent no money on traditional marketing.’  People forget the impact that print, radio, and television have on online traffic.  When I was at MTV Networks, I used to joke that the channels were only there to promote the websites.” —Jason Hirschhorn, Media ReDEFined

“Now, the people who are getting paid are the people who know how to make media get earned.” —Jeff Bercovici, Forbes

 

Social is better than search for brand building.

Search advertising lacks the brand-building potential of TV and print.  Social, on the other hand, is ideal for brand-building.  Advertisers have been slow to embrace this, and we need to provide them with a compelling return story before they’ll be willing to make the leap.

“Social has enormous potential to be a brand accelerator.   Through social, I think you can build a brand much more rapidly than you can through search.” —Wenda Harris Millard, Media Link

“On the advertising side, there’s an argument that social has the potential to be a vehicle for brand advertising in a way that search can’t be.  But what should be the metric for brand?  Brand impressions are so much further up the funnel before you have an action.  I think people are trying to find some metric between CPM and CPA.”  —Erick Schonfeld, TechCrunch

 

It’s time to find the magic metric.

Even though social has been around for a while, most people don’t know how to measure success.  At Wetpaint we’ve made huge strides in this area, and other people in the room were clearly ready to make this a priority.

“There’s a tremendous amount of money being spent by the film studios specifically on television advertising, and it’s a very inefficient spend; it’s carpet bombing.  Virality and targeted advertising are a much more efficient spend, but so far digital media hasn’t been able to show the lift those properties need; they don’t see the payback.  They know it’s happening, but they don’t know how to quantify it.” —Jason Hirschhorn, Media ReDEFined

“We don’t have a choice.  We’re either going to figure this out, or we’re going to live another ridiculous couple of decades without understanding why money is spent.  Have I seen a magic metric?  Not yet.” —Wenda Harris Millard, Media Link

 

THAT’S ALL, FOLKS

I hope you enjoyed our Rebooting Media think-tank series, and most importantly I hope it pushes you to join the conversation. 

What does the next decade look like?  One thing is for sure: it will look nothing like the last one.

Search vs. social, curated vs. created, owned vs. earned – these are not binary outcomes.  How do we combine them in a way that meets the needs of the audience?

These are early days still, and there’s a huge opportunity for media players with the imagination, the brains and the courage to get there first.

 

Want more?  Download a PDF of the full published collection of perspectives prepared by these participants and others at Rebooting Media:  The Digital Publishing Revolution for a Fully Social Web

And if you missed part 1 or part 2, you can find them here:

VIDEO: Rebooting Media Think-Tank: Content Creation vs. Curation

This is the second chapter of our Rebooting Media think-tank series.  In this video, our thought leaders address the question:

Do curators bring value to content creators, or are they just stealing content?

Hear media industry executives debate the pros and cons of web curation in the video and read the most salient comments below.

 

Curators are the new editors.

As we’re overwhelmed by an increasing number of voices and information channels, we look to curators to sort through the clutter and tell us what’s important.

“I’m one of those people who reads or watches or listens a little more than the average person.  If a person wants to stay up to date on certain topics but they have a family or a job or a life, curation services can help break through and deliver.” —Jason Hirschhorn, Media ReDEFined

“A curator is an editor, essentially.  You become a trusted source by doing the hard work for your audience and telling them what’s important, whether you’ve written it or not.  Traditionally that’s been the role of great newspapers; now that function is being spread across the web.” —Erick Schonfeld, TechCrunch

 

Publishers have a love / hate relationship with curators.

Curators help to expand a publisher’s reach, but the publisher risks losing credit (and traffic).  Curators who link back and republish only enough to pique interest will keep publishers happy.

“It’s like the forest episode of Planet Earth: the animal eats the nectar and sort of destroys the plant but spreads the pollen all over.” —Jason Hirschhorn, Media ReDEFined

“A lot of money goes into making a piece of content, and then it shows up on somebody else’s website where they are ‘curating.’  That’s one word for it, and ‘stealing’ would be another.  That’s a difficult balance: we want them to put our content out there but, ultimately, if you don’t come back to us, then we’re not capturing the full value.” — Jeff Berman, NFL Digital

“You can’t capture everything and you have to make a decision about whether the value of social distribution outweighs the value of pay-for-each-play.” —Erick Schonfeld, TechCrunch

 

How does curation become a real business?  Just add creation.

Curators provide a valuable service to consumers and publishers.  But can you charge for someone else’s content?  The most compelling model going forward will be a curation / creation mix from trusted voices.

“I’m interested in content curators that are getting into the creation game.  Buzzfeed, for example, was a driver of viral content.  Then they shocked people by hiring editors and journalists and breaking a story.  They took content that they owned and used the tools and algorithms they had to publish it into the social feed.” —Greg Clayman, The Daily

“We’ve experimented with all original content and all curated content, but what performs the best is inevitably a mix.” —Ben Elowitz, Wetpaint

 

Part 3: Paid vs. Earned Media

For more from these thought leaders and others, download a PDF of the full publication Rebooting Media:  The Digital Publishing Revolution for a Fully Social Web.  

Why Rupert Murdoch Is Right About The Daily

This article was published as a guest post on paidContent.org

There are plenty of naysayers who point out that Rupert Murdoch’s new initiative The Daily — the first major-media publication created expressly for tablet computers like the iPad — is an expensive and risky bet.

But here are four reasons why Rupert is right:

1) Rupert knows the ad model of publishing is doomed. Print and broadcast command the heftiest premiums, and both are at risk of price and volume erosion as consumers cut their ties to offline media. In the digital environment, online advertising is highly commoditized: the explosion of content publishers is outpacing the shift in demand, while technologies target audience ever more efficiently. Advertisers have plentiful ways to reach a consumer.

For his part, Rupert knows that his offline publications are at risk from decreasing ad revenues, and web-advertising models are hardly an adequate solution. Whether it’s out of desperation or vision, Rupert is willing to break through — and lose money in the short term — in pursuit of a better model.

2) Rupert can afford a long-shot bet — and can’t afford not to make one. He’s leveraging his considerable influence by putting something out there that can be truly cutting-edge. A $30 million investment may seem ridiculous for a new publication — and it is. But even with that hefty price tag, this is an insignificant bet relative to the industry and consumer behavior Rupert is trying to move. Throwing money at this is OK, because the possibilities are so great; if The Daily succeeds — or even provides the key insights so his next venture can succeed — it will be worth billions.

3) Rupert has influence to change consumer and industry behavior. He beat his drum loudly last year to get paywalls on the agendas of other publishers’ boardrooms. And it’s worked; just look at The New York Times’ pending move to a metered system. This is what I love about Rupert: Unlike other leaders in publishing, he uses his voice — and his treasury — to influence the industry and consumer behavior. He’s all about trying to get to a more successful model.

4) Rupert has a friend in Steve. Steve Jobs has a lot riding on this, too. Is Apple (NSDQ: AAPL) in the device business or the media business? To date, the lion’s share of its revenue and growth has come from the sales of ever-more-advanced devices. But as device categories mature, Jobs knows growth will get harder to come by: iPod sales grew at just 2% for Apple in 2010, as the venerable device line nears saturation.

In a world where mobile devices are ubiquitous and fiercely competitive, the fat margins of media revenue-share arrangements can powerfully fuel profits. But even more attractive is the tremendous expanse of the pool:  Apple’s media revenues are currently around $5 billion — a paltry sum compared to the global media and entertainment market that PricewaterhouseCoopers pegs at $1.3 trillion.

Apple has already proven that in its remarkably successful closed media ecosystem, the company’s store can earn an estimated 30% of the top-line for media sales — without having to produce any media. This happens when Apple creates compelling devices, exciting user-experience platforms, and fresh marketplaces. For Steve, the upside here is huge. And so he should be happy to tie that upside with anyone who is as crazy-aggressive as he is about getting legions of consumers in the habit of paying for media. And that list has just one name on it: Rupert Murdoch.

A fresh start and a new division — with a new concept and a new design for a new platform — is the only way someone like Rupert can have the freedom he needs to reinvent media for a new age. And only Rupert can do this — without falling into the ruts of compatibility with existing businesses or holdover assumptions from old models.

Kudos to Mr. Murdoch for summoning up the courage, and putting up the money.