A presentation on the future opportunities in media, turning threats into insights into opportunities.

The presentation future media – no more middle men, is an accumulation of a range of relevant thoughts from this blog, put into system.

It’s built as a master slide set (to pick and sort from), but I tried to ad some structure to it by identifying six major “forces” affecting media, and then a short final chapter summarizing a suggested future mindset.

I’ve also chosen to ad a lot of the explanatory text – not just the headlines – into the slides this time, hopefully this will create more context for the people reading the thing online.

Find individual slides available for download under a CC license on my flickr.com account everything new is dangerous.

Find the presentation below, or on my slideshare account slideshare.net/helgetenno.

Adding digital components to increase the engagement in and value created from a TV event, means thinking outside the obvious Facebook chat integration, the PC, online, and even the TV event itself.

In a recent study by Kaiser on the trends of American youth, shared by JWT on their Intelligence blog, there are numbers stating the increase in multitasking while enjoying other mediums (TV, Radio, Computer). No surprise, but the interesting point is what kind of medium they are multitasking with.

Multitasking is the wrong word here, as the brain can’t possibly do two things at the same time. The correct description would be “switching focus”. As stated by the America Scientist: “psychologists know that multitasking involves switching rapidly between tasks rather than actually performing multiple tasks simultaneously.” JWT has decided to dub the trend Distraction as Entertainment. (But I am having a hard time finding any good articles on their definition.)

From the report:

“…almost half of kids (47 percent) report texting someone ‘often’ or ‘sometimes’ about what they are watching on TV—an activity that was almost unheard of five years ago.”

The device people were using together with TV is their mobile phone, up to half the kids are using it to keep in touch with friends and exchange ideas in this context.

This is interesting, with almost one in two kids talking with their friends about what they are watching on TV, and using the telephone – not a desktop/PC based social networking application – inspires to think about two things:

1. The Laptop + TV living room idea is great, but the potential in Mobile+TV might be even bigger. To be frank, the popular TV-event + Facebook chat integration really isn’t that impressive, and seems more like a “lack of imagination band-aid”.

2. Sending SMS is just a choice in regards to the goal of their communication – it’s simple, cheap or free and communicates short exchanges beautifully. Which means that we should be able to introduce new concepts based on a solid understanding of the context itself, low technological barriers and great rewards.

In my personal experience with games, it’s not the national or big games that create the best engagement; it’s the local ones. And not “local” in the geographical sense, but in a social sense, were one engages an existing group of friends. This is not because friends play more with friends online in comparison to with strangers, but because it enables the real-life dimension. Where the game does not exist exclusively online, but creates a form of social worth (a value defined by Jenkins) that ignites exchanges when the group meets socially in real-life. It becomes a valuable currency even when the game is not played. Something to talk about and share, at school, work or other gatherings outside the computer.

Using the game, not to play it online, but in order to share an experience that brings value both to their digital and real worlds (even though it’s the same place), it is the strongest enabler.

As JWT rounds of their blog post:

“Content creators can turn this trend to their advantage by layering a multitude of media into entertainment, producing an immersive experience designed for simultaneous consumption and engagement.”

And I would ad, that it’s when media, and especially TV, not only plays on what’s happening and created inside media, but also plays on the activities, dimensions and social groups that exists outside media – and with additional ideas and activities outside simultaneous – it becomes really powerful.

To sum it up; its when the layering (as JWT defines it) not only includes media but also includes a real world component, includes the idea of the engagement branching of and existing outside the TV time slot, and adding a local, social dimension, things become interesting. And even though the PC/Laptop is a brilliant tool, the mobile phone might be a better instrument in this context.

Three projects, that all bring different but interesting aspects into this line of thinking; Parking Wars, MTV Backchannel and Fantasy premiere League. (unfortunatley I can’t find any examples with mobile)

And of course, this does not only apply to TV events, but all events. As events are like products; an invitation to become a part of something valuable…

Online advertising will change fundamentally during the next year to four years. The reason is more unexpected, and with larger consequences, than anticipated.

I’ve written previously on how both the competition to the online ad product (ie. earned media) and our citizens’ change in online behavior should be forcing online media to innovate its advertising and marketing products. Now it seems these symptoms where only the tip of the iceberg: a change in the fundamental business model of the media industry.

In 2009 media has been failing, and it’s failing fast. All hands are on deck and the ability to think disruptively, not only incrementally, has invited people to rethink the whole structure of their business model. This will affect their income strategies and the companies sponsoring these income strategies.

In other words: online advertising is changing, because the media business model is changing.

This is the case I’m trying to make:
Media has been stuck for some time, but the scalability of the online advertising real estate, and the enormous market has kept the ball rolling. Not sensing that the drive for traffic and the drive for more ad space lessened the editorial product and made the media brands invisible.

As Kristin Skogen Lund, CEO of Aftenposten, one of the biggest newspapers in Norway said at a talk last week:

- ”We’ve been to identical, bought cheap traffic at a cost to our brand for to many years.” - Kristin Skogen Lund, CEO, Aftenposten

Scott Karp, editor of the Publishing 2.0 blog ads another argument:

“most newspaper websites sell SPACE for commodity advertising — display ads and classifieds — and thus are hard pressed to compete with ad networks that specialize in selling commodity ad space by the megaton” – Scott Karp, Publishing 2.0

The result is that the display advertising model works just fine for media buyers, but for brands they are receiving a decreasing amount of effect – and compared with the effect from earned media the investment at times can seem as a complete waste. At the same time media companies have brought a knife to a gunfight, they are competing against the networks, a game they can’t win, and are destroying their most valuable possession – their brand – along the way.

So something has got to change!

An incentive for change:
Two important facts where laid out by Skogen Lund at a conference last week:

- Only 5%
Skogen Lund stated that Aftenposten’s online revenue only represented 5% of their total revenue. Scott Karp confirms this as representative for the whole industry:

“That’s why the newspaper industry is worth about $60 billion offline but only $3 billion online — they only have about 5% of the pricing power that they did when there was only a finite amount of space in for printing ads.” – Scott Karp, Publishing 2.0

Online advertising in it’s current form is not a big revenue model for media companies, which would incentives innovation. If only one believed that online customers where better customers… Are people worse customers online? Hardly, FEED: The Razorfish Digital Brand Experience Report / 2009 states:

“Brands that use digital to drive awareness also drives sales: 64% of consumers report making a first purchase from a brand because of a digital experience” – FEED 09

So there is nothing wrong with the platform, there is nothing wrong with online, it’s how we’ve utilized it for advertising, and as a business model, that has been completely of the mark.

- Advertising decreasing, subscriptions increasing
A second interesting fact presented by Skogen Lund was a graph showing how advertising has represented a sharp decline in revenue, while subscriptions a sharp increase this last year. This at the same time as we are seeing niche newspapers, with strong brands and identifiable products, increasing their subscriptions in contrary to the mainstream newspapers which are declining. This tells us that there is an interest in a strong media product, and people are willing to pay for it.

My conclusion is this:
Media is a product (a membership), has always been a product and will continue to be a product. But somewhere along the way someone found that sponsoring it with advertising was a god idea. (Brilliant video for Norwegian readers to be found here (Thx. Freddy)). Which it was, to some extent. But the consequence was that the drive for traffic became more important than building a strong brand and a unique product.

Today when advertising sponsorship is failing as a business model, media has to start charging for something. But since they are left with a generic product it is impossible to charge for content that can be found for free ten other places.

(which is probably why Murdoch is shutting out Google, and also the argument of Mathias Dophner here. They want to protect it before they create it.)

So I anticipate that blood will continue to flow in the Media industry – because there is not enough money to finance all these institutions, and there is not enough strong brands to charge for their product.

Which leaves us with advertising: Advertising online will change because the media business model will change. Media brands seeing that they either don’t need to garbage their stories with competing stories, as Scott Karp says:

“advertising isn’t more valuable when placed next to premium content because display advertising has so LITTLE value to begin with. In fact, display advertising creates so little consumer value that it actually SUBTRACTS value from high quality editorial content when placed next it.”

Or because they find that people reading their publications are there because they get provided a value, and that brands in a lot of instances can co-produce this value. That NEW BRANDS are value creators, and that NEW MARKETING IDEAS are about creating additional value – not a competition between the attention of stories. And that this value, and a relationship built on trust between the media, the brand and the participant, will create a new, valuable, membership based content system.

That brands, as Forrester already has anticipated, will sponsor niche arenas where they can build direct relationships with their participants and members. What these arenas are, how large, small, niche or commercial, content, conversation or context based is completely up to our own imagination and creativity.

Mobile is at the forefront of representing a completely new way of thinking about marketing.

But in order to understand this we need to look beyond the SMS and the text voting, and start exploring the real potential of the platform.

Since the Mobile Abilities Map pdf, published two weeks ago, has received a great deal of interest. I thought it would be a good resource to readers if I collected and published my inspiration and ideas to each topic. Hopefully getting some inspirational juice flowing.

- I’ve added links to each resource on slides where this was possible.

I hope people appreciate the presentation, and continue sharing great links on their own blogs (and link back here) or in the comments section on this blog.

As technology immerses into our daily life and disappears, value based marketing becomes available through new behaviors, inside situations where it is meaningful and useful.

This turns marketing into the experience surrounding the product – and in some instances becomes the experience people connect to and build relationships with. The marketing becomes the product, and the product becomes the marketing.

This is a presentation held for a class of students in electronic business development at BI, in Oslo Norway.

What are the challenges for FMCG brands in today’s post digital landscape? Especially, how does Digital Media facilitate good marketing opportunities in the Every Day Life?

The five ideas / suggestions presented are the following:

1. Marketing online has to impact how people feel about the brand. (it’s about ideas, not technology).
2. Build direct relations.
3. Be a conscious and active part of the every day life ecosystem – from at home, and out there, to in store.
4. It’s about them, not you – create contextual value.
5. Confusing social media with media.

…

It’s title and content is strongly influenced by the Brand Building in a Recession lecture by Richard Murray at D&AD earlier this year. A much recommended video.

Brand building in a recession: Richard Murray from D&AD on Vimeo.

Kevin Slavin of Area/Code states in this brilliant video from 5D Conference (previously published on this blog) that TV is an event, something millions of people gather around at the same moment in time, creating an experience where interaction, collaboration and synchronous action can occur.

Putting media into this context, where we create cross-platform experiences around a massive, congregating event, might also help us find new business models, new value and new context. As the activity surrounding the participatory part of the experience might be suited for establishing and growing direct relationships between companies and participants.

Now this isn’t only a TV mindset, every form of mass media is an event. As Seth Godin puts it while adding the same train of thought to newspapers, in one of his latest posts, “Everyone else reads it”:

“we need to read what everyone else is reading in order to have a sense of being in sync. If it’s in there, it matters, because everyone else read it.”

In fact, media, in and of itself is in the event industry, something everybody talks about, shares and spreads. Something we have to be a part of as it is a part of our culture and frame our conversations.

Thinking of media this way, not only as a source of information or entertainment, not only a social family event or as couch surfing. But an arena where people with shared interest and enthusiasm converge around a shared idea, might be very powerful. The trick is to find where brands can help extend the experiences with value adding marketing, not interrupt them with irrelevant advertising.

Our discussions, especially around media, should concentrate on how this new stuff ads to the old stuff, not how it kills it. How experiences spread across platforms, not fit into one.

New media models ia about combination, mixing the role, or the best of traditional media with the abilities of new, not go looking for brand new solutions.

If you want to know what the future might look like, start tuning your antennas to the ideas of Kevin Slavin of Area/Code. In this talk he explores some ideas on “the new livingroom”, where TV and online participation converge into a new experience, where viewers and participants reconnect.

In the talk, which Kevin is holding at the 5D Immersive Design Conference, he is as disruptive as in his last presentation at PSFK: “The mobile eco-system”.

Not to spoil it, but to give you a heads up, Kevin talks about games and the convergence of TV and Participation through simultaneous online activities. (The new Livingroom):

“Games with computers in them” (not the other way around)
“Televisions amazing, because it’s an event”
“Viewers and users are the same people, and the question is how to reconnect them again”

“We forgot what was so great about television, that it was something we all did at the same time, and it was kind of amazing. There was something that happened, something we all experienced that we could all talk about the next day. We had this kind of common conversation that was provided by it. And this goes away when you start time shifting, but it is actually really magic. And if you start thinking of television as something that we are all huddled around, for half an hour at a time, like all of us. It’s actually really magic. It’s something that only television could do.” (a tad rewritten :o)

Via offworld.

5D Conference : New Television Pt 4 – Kevin Slavin from Dave Blass on Vimeo.

Jeff Jarvis in this video, from the Nokia Ideas Project, states that since the Internet is a connection machine, anything creating artificial middle men, preventing companies from connecting directly with their participants, will become problematic.

All that is true for the old Attention Web, but the whole problem seems to be turned into an opportunity when we change to the Everyday Life mindset: In which digital media companies become partners with their clients in order to supply a direct relationship with the readers and participants.

As Geoff Northcott of *supercollider pointed out very clearly in his post “visualizing the decline of the destination web, the rise of the social web”, the destination web is on the decline. And if Jaap Favier of Forrester is correct, then the Media Companies that will survive are the ones that create and facilitate arenas for brands to connect with their customers on.

This would give, that in the new perspective of digital media, what Jarvis points out is not a problem, it’s an opportunity. In the Every Day Life mindset, digital media is in the “Creating Direct Relations” business, not in the “messaging” or “middle men” business.

Digital is by some perceived as “marketing on sale”, maybe due to it’s lack of tangibility, “newness” or failing ability to show it’s potential as the common way of perceiving new stuff is through the lens of old stuff.

But online marketing seems to finally be outgrowing the display/message based advertising frame- and mindset. Starting to see an increased focus on deliberate, value adding services, accessibility and social interaction. In this context digital will and should become the most important interface between brands and participants and ergo the willingness to increase investment should hopefully be inevitable.

Digital marketing and advertising, and by that I mean EVERYTHING digital, should be your most expensive endeavor, and the reason is it’s abilities.

This is a short “Only in Digital” abilities list:

In the traditional brand and communication mindset brands have been thought that they are unwanted and intrusive, but this is not true. Brands and products create immense value in peoples lives, with digital they have been given the opportunity to add to this value through meaningful and deliberate action.

This is an invitation to start believing in your brand communications again…