Ways Google Has Changed Media Consumption Behaviors

I was glancing at Google Fast Flip today and it struck me that they have been successful not only in providing what people want but in some ways changing human media consumption behavior.

We all know that Google has turned the media world upside down with the humble text ad because of it’s ad matching relevance and pay-per-click business model.

They have up-ended the rest of the media world because they have influenced people to stop using it. This may be completely un-intentional, but I think it has happened.

The obvious way is that Google has  gained brand preference as a reference tool and a information source on limitless topics. But there is another behavior that they have changed is not usually talked about.

This change in how people consume information is that they can scan headlines now and glean what has happened in the world without actually viewing the ads around the content. (or visiting the content site, via rss, email, search engine, aggregator or google news) This has been bad for online ad inventory (although some may say we need less inventory to drive up prices, not more) and worse for recouping the cost of producing the content.

I don’t think that Google is stealing anything like copyrighted material by linking headlines from Google News, the search engine or screen shots Google Fast Flip. That would be like saying you are stealing copyrighted material by cutting out an article about a local festival coming up and posting it on the break room bulletin board for your coworkers to see.

I do think there does need to be revenue sharing for content sharing on some level though. How this should come about, I haven’t the slightest clue yet. And it can’t happen in the search engine because it seems to vast to fully comprehend let alone orchestrate.

I do think Google wants to be in the media business without actually producing any content, and they don’t usually ask for exclusivity with that content. Google wants to provide more products for consumer use and consumption of information branded offline. If they offer basic content for free on these product/services and upgraded content for a fee they should share the fee with the content providers. The rates may depend on usage and of course demand, and they will probably always be in flux. (no more rate card anything)

Yet I think it’s important that these shared fees (content payments) should be as low as Adsense revenue share since Adsense revenue is largely regarded as welfare for website owners. It needs to be enough to incentivize content providers to really feel like Google is a partner in their business and devoted to a positive business relationship.

The alternative may be that someday you have to pay a large content creator to crawl its site and republish parts of the content. Yes sharing is good, but if the content borrower doesn’t bring in enough revenue (analytics can tell you if your google news readers view, click or buy things) then is it profitable to be hosting the traffic from that source? (yes, hosting costs a ton of money for large content sites) I guess everyone thought they could replace millions of dollars in branding with a simple search engine relevance project and all their traffic generation problems would be solved. It’s never that easy. You have to own the relationship with your customer, you can’t outsource that to Google or anyone else.

Trust is also one of the BIG hurdles Google has to overcome to really being a star in the B2B space. Google has always believed that any process can be automated by a computer and nobody needs to talk to a human because humans are either too expensive or busy engineering things. This seems to enrage some humans, mostly the ones that run large companies. Also, No customer service and No sales people that can actually answer your questions along with ridiculous inflated PPC rates have actually eroded their text ad client base in the last 2-3 years. (and that whole display thing isn’t really looking great for ROI either when you consider people under 30 don’t respond to them at all)

So, in order for Google to really keep that growth going, they need to compensate content creators when re-publishing their content on/in their branded products in the future or the content creators with the greatest authority won’t be there for very long. Yes, some laid-off journalists are blogging but in 20 years how many will be left doing any journalism at all if it doesn’t pay and very few newspapers exist?

I also think all businesses need to stop every few months and think about the future. We’re too busy overloaded with tasks from laid off coworkers to really do this, but in a profitable world we would make time to consider where things are going in 3,6,12 and 24 months out (not a swat analysis, those take too long and are somewhat cumbersome) and really think about what they think the business should be doing to compete and win and innovate.

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New Media and New Information Paradigms

I have been hearing about the demise of the newspapers, the rise of search/social networking/new media and the internet fragmentation concept for years now. (almost a decade?) And I just read about it again today with the newspapers secretly meeting to try and sort out monetization methods to save their business. At the same time I am a Guinea pig living through this time of change/shift in how people find information, use information and consume things. Here are some of my observations although not in a concise dissertation format yet. 

  • We are at an odd time in internet evolution, on pause between big developments. We got email, IM, web sites, RSS feeds, Blogs, social networking and now Twitter. We don’t need more services or ways to interact on the web. We need better all inclusive ways to connect and consume all in one. Ways to make the experience more relevant and more inclusive of many kinds of content at the same time. Not wasting our time.
  • I can’t help but notice that at 33 I have never really “read” a newspaper. This indicates to me that newspapers were not that important back in the 1980’s to my generation when their profits were healthy and the internet was but a dream for most of us. (Except being something to line litter boxes and bird cages with.) I hate the size format, I hate the ink and I always have. I actually like the ads though, especially the Sunday fliers. 
  • Weeks go by without my watching any TV. This started about 3 years ago when I got high speed internet. It’s not that I don’t like TV, I just don’t have time to sit for 2 hours plus and I know if i sit down I won’t get up and get anything accomplished in the evening/weekend. And I don’t like overly repetitive things. I was watching the sell that house shows on HGTV to get ideas about how to sell mine and after about 3 I got it and didn’t need to watch any more. Reruns aren’t nostalgic to me really, more just boring. And reruns is all Cable TV is about.
  • The only TV I will drop everything for is Top Gear UK. When it is in Season we trek over to my parent’s house and watch wwith extended family weekly. Everybody drops everything to watch that show. It makes you laugh, it makes you dream of fancy cars and it inspires you to take grand adventures regardless of what the outcome is.
  • This leads me to a general cluelessness about a lot of local and newsworthy (?) events. Things like buses that are Hijacked and what the weather will be tomorrow. I also find that these things weren’t essential to me in the first place. I carry an umbrella, what’s the big deal?
  • I find myself focusing on things I’m interested in. Maybe this is the political polarization people speak of? I read my marketing emails/newsletters/blogs as well as home design blogs and write my own blog as well. I check status on Facebook/Twitter/Flickr and maybe update if I have something interesting to say. And I work a lot. I also am always investigating 2-3 new directions for my work/career. Not all of them pan out, but they help me figure out what is evolving that I need to know about.
  • I do still use the phone (yes the land line). It is the best way to reach my parents and Steve’s parents. Steve’s parents email but mine are not really into it. And we try and go visit once a week in person. In person time still matters.
  • I am a book reader because I am a train commuter. I have been for years now and it has created a small library of business/marketing/analysis books. I order from amazon when I see something I like and then go consult the pile of books for something new.
  • And that is all I have time for. Now with a husband (fiancee really for one more month), 3 cats, 4 litter boxes, a yard, wedding planning, condo selling, house hunting, family organizing, laundry, food shopping & cooking I am overbooked. I don’t even get to skype/call my friends very often. A party invite seems really daunting these days with the schedule we keep.
  • I wonder about new media uses and if we will really care about anything not personally relevant to us in the future? Will a police chase matter to everyone in Chicago or just the people who live by the highway where it happens? Will we be less distract-able by sensational news and distracting entertainment? Will we be able to channel the news, information and analysis we really need into our lives and ignore the products/content we really don’t care about?
  • On the other side of the coin, how will we ever discover new things? I find myself looking to find out what is happening on the internet a few times a week and look to Google News and the Yahoo home page. Not the Trib. Yet somehow the list at these sites is always limited and not really anything relevant either.
  • There has to be something in-between a completely open fire hose of information and one select rss feed with just content from one niche area. There has to be some middle ground between being hijacked by ads for 20 minutes of a 60 minute program on TV and not knowing at all where to find a dress for my rehearsal dinner when my usual 5 clothing websites didn’t pan out. (who has time to go to a mall?) ((and why does Google shopping suck when the main search is generally good??))
  • People won’t pay for news. Period. They will pay for some kind of extra relevant cool service though. They will pay for innovation, new products that are noticeably better for some reason. Things that simplify your life.
  • Ads should not be integrated more with content as if they were the content. It blurs the line in what is really true and what is marketing speak. And although they may pay the bills for a while, people will eventually figure it out and abandon that medium that does this.
  • We need another search player. Google is not enough and although they do some things well, I am not a fan of everything they create. I would like more companies to work on real time indexing of information as well as historical archiving to keep information accessible if anything happens to Google’s accessibility. At some point people will be so hooked they will be able to charge for a (low cost) subscription to the search engine itself. 
  • More people need web enabled phones with internet use active. I just read yesterday that out of 57 million people in the US with internet capable mobile phones only 18 million have internet enabled! (netpop stat comparing us to China) 31.5% of the people with internet use phones don’t even pay for internet access? (only 13% of all the cell phones total) This is a huge hurdle to making info more relevant and accessible because people carry their phones everywhere. Things like bigger screens, flatter profiles and easier software app use on these phones will help the adoption rates improve. 
  • Identity management and security is also a problem. We might like something like OpenID but only if sites still allow anonymous comments too. Privacy and being able to say something important without being hunted down in person for your opinion necessary for getting people to adopt this identity management software and make our lives easier between all the hundreds of web sites and e-commerce activities we do in a day and consolidating that information for our own personal use.   
  • Data mining is going to have to improve. If statistics are wrong 25% of the time like stated in the Numerati book, we really need to combine automated data crunching with human decisions about data more often. Numbers are meaningless without someones explanation. This completely changes what and how data is configured, crunched and reported and can determine/undermine your results even if you manage to collect it perfectly.
  • All this plus the only way out of a recession is through innovation. We’re waiting.

Hippo – the highest paid person’s opinion in Marketing

I am not a huge fan of AdAge since it seems to revolve around old advertising techniques/media and big behemoth brands and agencies that I don’t work with, but this article about why most company websites suck was very interesting and very true. I believe that the highest paid person’s opinion (hippo) is what drives the development and makes decisions on what happens with most products and web sites. Even in a web site company.

I saw this happen at my last job, and the decisions were so contrary to what should have been happening that it nearly drove me mad. I left thinking I would find a better place to work and I did, but the rule still applies here to a lesser extent. The subtle difference is that I am higher paid now, so I have somewhat more say and my data and research disprove a lot of bad ideas from the start. 

In the interest of getting things done quickly and quietly without any discussion or debate, management usually critically limits the decision makers in most every decision to less than 3 people who share the same brain. (epic fail!) One, (a hippo) to make the decisions, and two others to say “yes” and find a way to justify it with data, research and sell it to everyone else. This may be the entire reason that the newspaper industry can’t make any money on the web.

The article points out that these hippos are the people least in contact with the customer and therefore have the least information possible about what the customer needs, thinks and wants. Golfing at country clubs and jetting around to accept awards does not put you in contact with customers or vendors or really at all with your company’s processes. This kills me. I can’t resolve how this happens and people get away with it except that once you have gained the trust of the upper management they pull you further and further away from your purpose with bonding exercises and sporting events. Management should be hands on without micromanaging and still interact with the finite details of the day to day operations. Without this you get one hand erasing what the other has accomplished, opposing directions for initiatives and a general clusterfuck in processes. In general this also plagues most of American businesses and I think contributes to our crap economy not evolving fast enough.

/end rant

New Cool Web 2.0 Sites

I am always running accross new sites that do neat things on the internet, check these out for some fun this weekend:

Kaneva – discover an engaging 3D world where your media, online entertainment and imagination come to life. Create a profile, unique 3D avatar, 3D home and teleport “in-world” to explore and connect with others.

MocoSpace – you can meet new friends and stay in touch with old friends anytime–anywhere, directly from your mobile phone. It’s a social community made up of more than a million registered users in the US and around the world. Sign-up is quick and best of all, it’s free. Stay connected while on-the-go, all the time.  It’s myspace for your phone.

Auction Pal – selling your “stuff” has never been so easy. Have an item you want to sell? Find out how much it’s worth with auctionPAL’s calculator. Don’t stop there! To help make selling easy, auctionPAL has three different services, each designed to meet the needs of a different type of seller. Just pick the one that’s right for you. Could this be the next Ebay?

GrayBoxx – search locally for the top neighbor-recommended businesses and services. Grayboxx’s innovative technology translates the everyday interactions people have with businesses into meaningful expressions of popularity and quality. This has been tried before, local search never works. But yet they want to try it again…good luck guys.