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May 2007

May 29, 2007

Disruptive Dialogue #12 - Future of Media and Online Advertising

download Disruptive Dialogue podcastThe latest episode of the Disruptive Dialogue podcast is now available.  This one was recorded in Bow, NH and is 23:37.  You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

Topics:

  • The O’Murdoch Factor
  • Doc Searls on newspapers
  • Private Equity is the biggest threat to journalism
  • Media consumption rates
  • Online ad spending hits $17B
  • Breakdown of online ad spending by format
  • TripAdvisor grows by user generated content
  • Why Ustream will change mainstream
  • Online video stats
  • Risk of user generated ads
  • Deal for small webcaster copyright royalties?
  • State of Technorati
  • Vertical search
  • Don Dodge on search market share
  • Blog Search is dead and Google killed it?

Show Notes:

To Comment:

  • Leave your comments here
  • Call the Disruptive Dialogue comment line: (617) 273-CHIP / (2447)
  • Email me your comments in MP3 format (no more than 2 minutes and 5 MB, please)

Transcript for PRSA Yankee Social Media Skills Workshop

Listen here

Doug Haslam: This is Doug Haslam of Topaz Partners. I'm here with Chip Griffin of Custom Scoop and we're speaking with the Yankee chapter of the Public Relations Society of America. We have a Social Media Workshop today, I'm blogging and podcasting.

What we wanted to do today is create kind of an uber commenting here, as we go around and get comments from each of the people at the workshop today and what you're doing with Social Media, if you're new to it, what you hope to do with Social Media. Or maybe even what your main questions are that still need to be answered.

So, we'll just start with here. Just say your name and who you're with.

Elizabeth LaRocha : Yes, my name is Elizabeth LaRocha and I'm Community Relations Manager with PS&H, we're an electric utility in the state of New Hampshire.

This is new to us and I'm here to see how we might be able to maybe jazz up our communications with the public, particularly with the fact that there's less local media these days. We're wondering if we can create more of a forum for ourselves. Perhaps put podcasts and things of that nature on our websites, and make them more interactive and interesting.

Jane: Hi, I'm Jane. I'm from New Hampshire Housing Finance Authority, and I'm the Communications Administrator there. We are not for profit, we are tax-exempt, so we're non-profit. We concentrate a lot on educating the public on home ownership; we do a lot of first-time homebuyer seminars, teaching the public on the dos and don'ts of buying a home. So, I think a podcast might actually be a great idea for our seminars.

Allison Bram: I'm Allison Bram and I work with New Hampshire Higher Education and we mainly work with students and parents. So, we're trying to figure out how to contact them in not only a way that works for the students, but also the parents can feel comfortable that we're using these different types of media.

Marcie Haite : My name is Marcie Haite and I work with Biss and Barcelona, it's a PR firm in Bearington, New Hampshire. We work with a lot of authors and entrepreneurs. So, I'm looking to hopefully spice up some authors, mainly their websites and get the word out there about them and about what they do.

Doug: Do you have any ideas about a technique you might use going forward?

Marcie: We use a lot of podcasts, but we pay other people to do it. So we're hoping to bring that in-house a little bit more and get more active with blogging.

Beck Pavinper: Beck Pavinper with Burgess Advertising in Portland. I'm basically here to prove that you can teach an old dog new tricks.

[laughter]

Beck Pavinper: What we are going to do is reach a younger demographic for our clients, and I think this is a great way to do it.

Tracy Hatch: I'm Tracy Hatch and I'm with the Nashua Chamber of Commerce and we're looking at new ways to reach out to our members and start some dialogue going back and forth. And, in particular, we're starting a new off-shoot organization focused on young professionals and thinking this is a great way for us to get that message out to them and encourage them to become more involved.

Susan Noon: Hi, I'm Susan Noon with the New Hampshire Bar Foundation, I'm the Program and Communications Director. We make grants to non-profit organizations that provide civil legal services for disadvantaged people or education about the law and the courts.

And we have many agencies in the state that provide services, but they don't necessarily know about each other and what they do. So, we're looking for ways to help them connect with one another, and this might work out.

Annette Curmin: My name's Annette Curmin from Daniel Webster College and I've actually had podcasts, and blogging on my goals for next year - well, for this coming year.

I was thinking about podcasts, maybe on a monthly basis with different members of the Daniel Webster College Community and I'm not quite sure what we would do with blogging, but I could see where we have a lot of young alumni and they would probably take to this like a duck to water.

Stephanie Skylar : I'm Stephanie Skylar and I'm with Unitel, which is a gas and electric company that serves New Hampshire and parts of Massachusetts. And I was here today to learn a lot more about social media because our company has been the subject of a lot of blogs. And I want to understand a little bit more about how we can handle that and what we can do, moving forward.

Also, I'm a sponge today and I've gathered a lot of information. I'm looking forward to researching and understanding best practices and understanding where social media is best utilized.

Retha Fielding: My name is Retha Fielding, I'm a private contractor. I'm interested in how we can use this tool for community relations, especially for higher education clients, because it's really, really hard to reach external audiences. I do feel also today that I've begun to learn a foreign language.

[laughter]

Pat Ross: I'm Pat Ross, I'm with Measured Progress and we produce state level standards based testing. And from what I can surmise, the main thing we would use a blog for would be to facilitate conversation between state level clients, but also right down to the teacher and building level, sharing information about how to administer tests and the like.

On the other end of it, I was just telling my co-worker here that part of our media monitoring is now showing people who have done temp work for us, scoring and the like around the country, talking about it on their personal blogs. I did media in quotes because it certainly opened my eyes to what media always was to me versus what it is now.

Elka Auburg: I'm Elka Auburg, also from Measured Progress. We are currently working on our first podcast. We're doing a conference in July, and we want to give people a glimpse - it's professional development for teachers - we want to give people a glimpse of what they can expect during that conference. So we are going to send out emails about it and include the podcasts and people can listen to it.

Doug: Great.

Tracy Messer: Hi Doug, I'm Tracy Messer from the Crotched Mountain Rehabilitation Center in Greenfield, New Hampshire and we work with children and adults with disabilities. This is largely all new to me here, and I'm particularly interested in coming up with alternative forms of communication for people with different disabilities.

Tammy Boucher: Hi, I'm Tammy Boucher from Boucher Public Relations. I'm here today to learn about social media, it's not something I've known a lot about. Not only to learn it for myself, but also then to educate my clients about new ways to reach their target audiences, particularly now that most people are getting their news online. And also because my nine year old probably knows more about this than I do.

Audience: [laughs]

Isobel Parke: I'm Isobel Parke with the firm of Jackson Jackson & Wagner who specializes in behavioral public relations. And I'm fascinated because the possibilities of social networking is really changing behavior. But on the other hand I'm equally frustrated by my lack of the technical understanding of what's going on. So it has brought me to a new level of confusion.

Audience: [laughs]

Doug: We were hoping to simplify it.

Isobel: A higher level of confusion is better than a low level.

Audience: [laughs]

Doug: Okay, you made me feel better. Okay.

Sue Chadwick: Hi, my name is Sue Chadwick and I'm a freelance writer. I'm currently writing a health column called "The doctor is In" for North Shore Medical Group and it would be really fun to have podcasts of the doctors speaking as opposed to me interviewing them and just writing it out.

I have harnessed the power of the blogosphere before with the knitting community and the whole genre of knit lit which I didn't even know had existed prior to promoting an author of the fridaynightknittingclub.com.

Celine Gelbart: Hi, my name is Celine Gelbart and I'm with the Emeas Institute in Nashville, New Hampshire. It's a corporation, non-profit corporation and it provides mental health counselling with a spiritual dimension. I'm trying to... I'm interested in the podcasting aspect because I believe that people who are looking for mental health services probably would want to hear someone's voice, it would probably be a draw. I'm particularly interested in that aspect of it.

Julia: Hi, my name is Julia. I'm with New Hampshire Audubon which is an independent state-wide conservation non-profit. I'm here primarily because I'm interested in ways to allow our members to connect with the organization and interact with each other. I think that both the podcasting and the blogging would give us a good way to do that and also to get the word out to potential new members.

Susan Turbid: Hi, I'm Susan Turbid, I work in marketing communications at Northeast Credit Union. This year we're trying to kick off financial education workshops and we think this is a perfect venue to look at in the future for recording these workshops so we can reach more of our community members and our members.

Kim Sperry: I'm Kim Sperry with the Lakes Region Association. We are a regional tourism marketing organization. I'm here to learn more about social media and how we might assist our members in getting the word out as to what they do and also help potential visitors get more information about the Lakes Region and come here to visit.

Heidi Edwards-Dunn: Hi, I'm Heidi Edwards-Dunn from New Hampshire Small Business Development Center. And first I have to say I have read the "Friday Night Knitting Club".

Audience: [laughs]

Heidi: We work with business owners in New Hampshire, providing business counselling and educational programs for their entrepreneurs for business management progress. We are just starting to do e-learning on our website, and this would be a future step, a way for clients to communicate with us, and us to communicate with the greater New Hampshire business world.

Lisa Morrissette: Hi, I'm Lisa Morrissette, I'm the director of marketing for Northeast Credit Union. One of the new markets that we're reaching now to is the 'generation y' market and today I'm here to learn about whether or not these are the right tools to help us do so.

Stephanie McLoughlin: Hi Doug, I'm Stephanie McLoughlin. I just left Corporate America a few months ago and I'm starting my own small communications firm called "Savvy Communications". These things that we've talked about today are all things I've heard of before, but wanted to know more about how to do.

And the more I hear about them, the more I'm learning about them, the more hats are coming out of the closet that I'm feel like these things are appropriate to use, not only to promote my own business, but my clients' as well and some of the community organizations I'm involved with.

Doug: Excellent, thank you all. And congratulations, you are all now podcasters.

Audience: [laughs] [claps]

Transcript for Episode 10

Listen here

Chip: Hello and welcome to the tenth episode of "Disruptive Dialogue" for Wednesday, May 16th 2007. Yes, I'm coming to you a day late this week, I was actually at the PRSA Yankee Conference Social Media Workshop that I organized and put on with Doug Haslam yesterday, so I was unable to do the recording.

I think that conference or seminar went pretty well, well attended, it sold out. There was actually a waiting list to attend, so that was great. I think the folks there really learned a lot and contributed a lot. In fact, we got some good comments from them that I'll include on a special edition of the "Disruptive Dialogue" podcast, probably over the weekend.

In any event, this week it is going to be a slightly abbreviated podcast because I actually need to catch an airplane in about three hours, so I have a lot to do between now and then. But I did want to make sure that I got a production of this podcast out first. Let's start with some news bullets that seemed interesting to me over the course of the last week.

The first was news that CBS had bought Wallstrip, perhaps mainly in order to get some of the talent from that particular online video strip. For those of you who are not familiar with Wallstrip, it's basically a short little video segment that is published online. And what it does is it tries to put in more entertaining terms some stock research tips. So kind of interesting there. Now I have to note I haven't seen any confirmation if the CBS News purchase of Wallstrip, but it was reported widely on several well-respected blogs. We'll have to wait and see whether that comes to fruition.

Next was a piece by Steve Rubel of Micropersuasion. He works at Edelman and he is one of the premium PR bloggers. He raised the concept of bloggers creating their own editorial calendars in order to provide more information to those who are interested in pitching them. An interesting idea and something to keep an eye on. I think it may be a lot of work for bloggers, but nevertheless it could prove to be useful to blogger and pitcher alike.

Of course my obsession with the Rupert Murdoch Wallstreet Journal story continues as it does with all newspaper stories. And in this case there was a New York Times piece that I will link to in the show notes that talked about how slim margins at the Journal have been and what has facilitated Murdoch's bid. So, something interesting there. Nobody would have thought - I don't think that the Wallstreet Journal was struggling financially.

Over in Europe, a British publisher is buying up small newspapers across Europe. This sort of feeds into my theory that the future of newspapers is local and I think Britain sees it. So something to keep an eye on and again, I will link to the New York Times story that discusses it.

There was also some discussion over the past week about a service called "ScanScout", a startup that does what's called contextual in-video advertising. And if I recall correctly what they are doing, they are actually showing text at the bottom of a video, but I really haven't had a chance to look into them, so I don't have an in-depth comment, but probably something worth checking out if that's a topic that you are interested in.

Bill Gates claims that reading will go completely online and that people will stop reading books. OK, this one I fundamentally disagree with. I think people still like books, even though I happen to be an avid user of the Sony Reader ebook, I think most people still will be using books for quite some time to come. This goes into the category of being a little too cutting-edge perhaps.

Forrester Research came out with a report over the past week that says there is no future for paid video downloads. They say that advertising will be the route to monetization for online video and not paid subscriptions or pay-per-download. They particularly took shots, as I recall, at some of the services that are coming out, including Vudu - I don't think they mentioned Vudu by name - but.

Vudu is one of my talked about on this podcast last week. And I'm actually bullish on that market. I think there really is an opportunity to pay for movie downloads. Now there may not be one for TV, because most networks are making it available for free but certainly I think there is market to pay for video downloads of movies.

Rupert Murdoch, another note on him: Apparently he may also be coveting Facebook according to ZDNet. So that's something else to keep an eye on. Murdoch of course already owns MySpace, so Facebook would be an interesting acquisition. It would really consolidate the social networking space.

Robert Scoble had a piece, talking about the need for better statistics, better web metrics. And I think that's something we all agree on. But I don't think anybody has got a real good solution to it.

PaidContent reports on the effects on the Thomson-Reuters merger and how that interacts with the current marketplace, which is led by Dow Jones and Bloomberg, so that would be something to also keep an eye on. I think the Thomson-Reuters merger is fascinating and I hope to dig more into that and have more on a future episode of "Disruptive Dialogue".

Some policy news: The United States Senate is considering legislation that would roll back the royalty rate hike for Internet radio. This of course has been a hot topic that the U.S. Copyright Royalty Board has assessed royalty figures for Internet radio which most argue would put Internet radio out of business and say that the royalties are out of line with what is paid by other producers and distributors of music.

Should be interesting to see whether this actually sees the light of day in the Senate; just because legislation is introduced does not mean that it is going anywhere. This may well be a test of the blogosphere and whether or not they really can propel a topic to the top of the legislative agenda.

And over in neighboring Vermont, a short distance away from dreary bone New Hampshire, where I'm recording this morning, Vermont has passed some legislation that apparently would mandate minimum cellphone coverage for certain areas of their state. Obviously it's a very rural state, as is New Hampshire, and there are a lot of dead spots in cell coverage.

I'm not sure this is a particularly good idea, I haven't dug into it tremendously, but I'm not a huge fan of government mandates of what private business should do. I mean it may well be that there are just large swats of land that don't make sense financially for the provider to provide service. My concern obviously would be that it would simply drive up rates for everybody.

So that's what I have in the news today, it's obviously an abbreviated podcast. I was going to take some time and jump into a couple of more in-depth stories, but I think what I'm going to do is actually keep this as a mercifully short podcast.

I've had two that have escaped my 30 minute limit in the past couple of weeks, so instead today I will deliver one to you that will come in at under ten minutes. I do have some listener comments, but I'm going to save those for next week's show, which hopefully will be a blockbuster that will still somehow come in under 30 minutes.

So thanks for tuning in. If you are a first-time listener to the "Disruptive Dialogue", I appreciate your listening, you've gotten quite a sampling of the kinds of topics that I talk about here, although not with the detailed analysis and commentary that I usually try to offer. I talk about the business of online communication which includes everything from media to advertising to blogs and some PR and marketing thrown in for good measure.

If this is the second or more times that you have tuned in to this podcast I really appreciate you sticking with it and I hope that even though it is an abbreviated version today that I have delivered some value to you. I look forward to speaking with you all again next week.

Remember that this is a dialogue, so I welcome your comments on any of the topics that I have discussed on this or any other show. Next week I will certainly have my comment line back in place - for those of you who listened to the last episode you know I've had a few issues there with making sure that the comment line was working correctly.

In the meantime, send comments by email, either audio or text, or leave a comment on the show blog. In any event, this is Chip Griffin. Until next week. Good luck!

[music]

May 22, 2007

Disruptive Dialogue #11 - Old Media, New Media, Multimedia, and Books

download Disruptive Dialogue podcastThe latest episode of the Disruptive Dialogue podcast is now available.  This one was recorded in Bow, NH and is 29:51.  You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

Topics:

  • SF Chronicle Lays off 25%
  • Don Dodge says newspapers need to go hyper-local
  • Mark Cuban says TV and newspapers should follow a convergence model to thrive
  • The Mini Media Maven model
  • Cynthia Brumfield says media needs to follow the model of Om Malik, Rafat Ali, and Mike Arrington
  • Monster.com does a deal with Community Newspaper Holdings
  • Joe Wikert of Publishing 2020 talks about a new model for book reviews
  • Free NYC newspapers now battling online
  • Hawaii court to settle blogger vs. journalist question
  • Google denies paying UK papers to index them in Google News
  • The Apple/iPhone/Engadget kerfuffle
  • Wall Street Journal reports on TV industry "blogola"
  • Stephen Baker of BusinessWeek muses about new media influence in wake of Mike Arrington's lament about Silicon Valley
  • YouTube focused more on user content than big media
  • Internet TV downloads to hit $1.5 billion by 2012
  • Next New Networks launching "micro TV networks"
  • More on pre-roll ads and tragic news video
  • Can book projects be "crowdsourced"
  • Technology changes the meaning of "out of print"
  • PRSA Yankee Chapter Social Media Skills Workshop
  • New comment line set up

Show Notes:

To Comment:

  • Leave your comments here
  • Call the Disruptive Dialogue comment line: (617) 273-CHIP / (2447)
  • Email me your comments in MP3 format (no more than 2 minutes and 5 MB, please)

May 19, 2007

Special Edition - Comments from Social Media Skills Workshop

download Disruptive Dialogue podcastThis special edition of Disruptive Dialogue was recorded at Southern New Hampshire University in Manchester, NH on May 15.  In it Doug Haslam of Topaz Partners interviews attendees at the PRSA Yankee Chapter Social Media Skills Workshop to find out how they hope to use social media in their jobs. There are lots of interesting examples and ideas, and it runs 10:54.

You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

May 16, 2007

Disruptive Dialogue #10 - 05/16/2007

download Disruptive Dialogue podcastThe latest episode of the Disruptive Dialogue podcast is now available.  This one was recorded in Bow, NH and is much shorter than normal at 9:55 (my speaking and travel schedule this week precluded a lengthier edition).  You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

Topics:

To Comment:

  • Leave your comments here
  • Email me your comments in MP3 format (no more than 2 minutes and 5 MB, please)

May 14, 2007

Transcript for Episode 8

Listen to the complete podcast here.

Chip:  Hello and welcome to the 8th episode of Disruptive Dialogue for Tuesday, May 1, 2007. I'm your host Chip Griffin, and I'm coming to you today from cloudy Bow, New Hampshire, where we finally have no snow. And I have much less of a cold than I've had the past few weeks. So perhaps that means my voice won't be quite as fun, but hopefully the content will be at least as entertaining.


Of course, here on Disruptive Dialogue, we talk about the business of online communication. And if you've been here before, I appreciate you coming back. If not, you'll find that I talk about a variety of topics, including technology, PR, marketing, media, those sorts of things.


So stay tuned and you'll find out what it's all about. On today's show I've got some news items, three of them to be exact. And coming up after that, I've got several commentaries.

We'll talk about mass media and whether or not it's dead, and what that means for niche media. We'll talk about the phone interview kerfuffle that was going on between Jason Calacanis and Fred Vogelstein of Wired. And we'll talk about a new company called Vudu that allows you to watch movies on demand on your television. Doesn't sound that interesting, but stay tuned. I think you'll find it to be an interesting discussion.


And, finally, we'll have a bit of a discussion about what's going on in other podcasts, and also, of course, listener comments, because the name of the show is, after all, Disruptive Dialogue. That means I want to have a conversation with you.


So go ahead and share your comments with me. You can do so by email, you can phone the call‑in line, which you'll hear the number for in a little bit, or you can email your audio comments to me in MP3 format.
So sit back and enjoy the show.
[music]

Chip:  Time for a bit of news, and I've got three news items for you today. The first one is on one of my favorite topics: newspaper circulation. The report out in today's New York Times says that the newspaper industry as a whole reported a quote 2.1% drop in weekday circulation, and 3.1% on Sundays in the six months that ended March 31st, compared with the same period the year earlier.


But they have this interesting bit later on in the article that says the New York Post and its rival, the Daily News, defied the industry's gravity. Circulation of the Post jumped 7.6% on weekdays and 6.2% on Sundays. And at the News, it rose 1.4% on weekdays, but slipped 2.5% on Sundays. So perhaps there's some hope for the tabloid format.


Really, I think what this is telling us is that, as I've been harping on, the newspaper industry needs to evolve. It's not a matter of whether newspapers work or don't. If there are newspapers that are actually seeing growth in circulation, it means that something can be done to improve the fate of newspapers. So don't whine about if you're a newspaper publisher, editor, or reporter. Rather, figure out what to do about it.

Next, have we reached the peak of Mount Blog? That's what I wrote about on Pardon the Disruption recently. And it was about some statistics that Heather Green at BusinessWeek managed to dig up. She convinced Dave Sifry of Technorati, who does a regular report on the state of the blogosphere and talks about how many blogs there are and how fast it's growing and all that.

And she got him to cough up some facts and figures that suggest it's not exactly as he seems to suggest in his ongoing report. In Sifry's report, he talks about 70 million blogs in the blogosphere, and this corresponds to the number of blogs that he and his team at Technorati are indexing. But there's always been a belief that there is a significant number of those blogs that are dead or dormant, that there really aren't 70 million actively updated blogs.

And it turns out that surmise was absolutely correct. In fact, a very small portion of that 70 million is actually active. And what Heather found out from talking with Sifry is that there are 15 million blogs that have been updated in the past 90 days. So, that means that 55 million blogs that they claim in their index aren't really there. I mean, they're there, but only for historical purposes.

So while the 70 million figure isn't inaccurate, it is misleading. The unfortunate thing is, 15 million is still a very impressive number. That's far more publications than exist in the traditional media world. So to me, I would prefer not to overstate the number, but rather give the real number and talk about it in context.

I'd also frankly be interested in seeing what the break points are in 60 days or 30 days. Does that 15 million drop down to five if you look at the last 30 days? How many blogs are updated on a weekly basis? These would be all interesting statistics to see, and I would love to see Dave Sifry put that information out.

And I don't think it in any way takes away from what Technorati is doing. They do a tremendous job with indexing blogs, and I take my hat off to them. But let's deal with real statistics, because it's so much more meaningful.

The other interesting thing that Heather found was that the numbers haven't really changed that much over time. In the last six months, the number of active blogs has only gone from 15.3 million to 15.5 million. This clearly suggests we're at a peak, but until we have more data to go on, it will be hard to say that with certainty.

Also, she notes that the number of English language posts actually fell between last fall and this spring. In October, it was 507, 000 posts in the English language. And now, it's only about 495, 000. So not a huge difference, but nevertheless suggests that we really have hit that peak.

The other thing I would note is that the number of daily English language posts corresponds actually fairly nicely with the number of online media stories that we at.
Customer Scoop track on a daily basis, which suggests that as far as amount of content, there may be some parity between English language traditional media publishing online and blogs. So definitely something to keep an eye on.

And the final news item today is not so much communication‑oriented as business‑oriented. And I think it still has a lot of bearing for listeners to this podcast, so I wanted to share it. It was a story in New York Times over the weekend that suggests that Dell is rethinking its traditional direct sales model.

This is how the article begins: "Michael S. Dell, the chairman and chief executive of Dell who built his business by selling direct to his customers, is now thinking about changing the way the company markets its computers.

'The direct model has been a revolution, but it is not a religion, ' Mr. Dell wrote in a memorandum sent on Wednesday to 80, 000 Dell employees. It is the first time that Mr. Dell or any other senior executive has publicly conceded that the business model that was crucial to the company's success could and should be altered. Until now, the company responded with an adamant no when Wall Street analysts for customers asked whether the company would consider other ways of selling."

This is a huge transformation for Dell. For those of you who are not really followers of the company, they have typically eschewed going through retail outlets ‑ either their own, in the Apple model, or others, as other manufacturers like Lenovo with their ThinkPads have done. So, if they're considering selling through retail chains, I find that to be a huge development and something that all of us, whether we're communicators or businesspeople or whatever, need to pay attention to.

To me, the really interesting thing here is it plays into the immediate gratification model that we all have become accustomed to in the Internet age. If we want some software, we download it. If we want some music, we download it. We get these things immediately. We no longer have to wait for a shrink‑wrapped package to be sent to us.

Now, obviously, that's not possible with computer hardware. I defy you to try to download your next Dell computer. It's simply not going to happen, at least not for a long time. But how does the immediate gratification go along with Dell's model of customization? When you look at ThinkPads, or at Apples, they don't do a lot of customization for customers. It really is more the cookie‑cutter sales approach: take it or leave it.

Dell has always specialized in letting you pick whatever components you want and it will be interesting to see, as they move potentially to a retail environment, how they balance the benefit of instant gratification with the drawback of lack of customization. Maybe it works out fine. Maybe it turns out that the people who want immediate gratification aren't as concerned with customization.

But how does that dilute the brand? How does that change the perception of the company? These are very interesting things to watch and I will definitely be keeping my eye on Dell.

[music]

 

Chip:  Will you be practicing voodoo in your living room soon? That's the question that comes to mind after Sunday's article in the New York Times about a startup company called voodoo that is preparing to offer films for immediate download and viewing over the Internet and on your television. Let me read a few excerpts from the New York Times story. It is a lengthy story so I'm going to pull some lengthy excerpts, just to give you a flavor for what is going on so we can talk about this.
It says, "Voodoo, if all goes as planned hopes to turn America's televisions into limitless multiplexes, providing instant gratification for movie buffs. It has built a small Internet ready movie box that connects to the television and allows couch potatoes to rent or buy any of 5000 films now in their growing collection. The boxes biggest asset is raw speed. The company says the films will start playing immediately after the consumer makes a selection."

This of course is a big change over some existing technologies where you need to download a movie to your computer and then you can watch it on your television. If you're able to start viewing immediately in a streaming fashion then that provides some real benefits to the consumer.

The question is how are they able to do this? And they do it through peer‑to‑peer technology. For those of you who are not familiar with that, it's where you share information between users. Typically these systems have been set up so that users do it in a way that they are aware of each other and they are directly sharing. But let me read from the New York Times article to explain how Voodoo is doing it.
It says, "The system, according to interviews and those patent applications will operate under the traditional peer to peer service but without any active participation by users. Voodoo boxes that already have a certain movie on their hard drives, say The Godfather, will send pieces of that movie to a nearby box when its owner suddenly gets a taste for the epic mafia drama."

Now that's all well and good but this is what is interesting to me. Listen to this next paragraph.

"But to get those movies playing quickly, the Voodoo engineers struck upon another notion. Using a slice of the digital real estate on each Voodoo box to store the beginning portions of each film. They also delved into the science of predictions. When the company determines that a movie is more likely to be rented or purchased early in its release for example, it will plant lengthier pieces of that film on unused portions of Voodoo boxes in customers homes."

So this does really do a good job apparently of meeting the immediate gratification needs of the consumer. And this really goes to the evolving environment that we see in the entertainment world. And the New York Times also touches on this point. The article goes on to say, "Voodoo is arriving at a time of rapid change in the entertainment and media landscapes.

This year for the first time, a majority of American homes will have broadband connection to the Web, according to iSuppli, a research firm. That benchmark has reshuffled cards in the media and entertainment industries.
With versatile data pipes now reaching into most homes, the deep thinkers in Hollywood and Silicon Valley say they believe that television shows and movies, just like email, web pages, songs and albums, will one day be cheaply and efficiently imported into the home. But the only question is when."

The article goes on to talk about the needs for consumers and desires of consumers. Here's a quote from a researcher who says, "Consumers want choice and control but for long‑term video‑like movies on the PC, that is not enough. You have to get the contents to the television."

And the New York Times article says this, "Steve Jobs at least understands that. Apple, which has been the most successful movie downloading effort so far on iTunes, offers just 500 films from two major studios. It began selling a device called Apple TV last month. Priced at $299, the box wirelessly draws movies, TV shows and music from the computer to the television."

The New York Times goes on to write, "The people at Voodoo seem particularly wary of Apple TV. They bought two to test. But they are betting that movie downloads will ultimately be free from the awkward dependence on the computer and they think that this could happen sooner than anyone else expects."

I agree entirely with that statement and I think that Voodoo has really hit on something here if they are able to execute it as well as this article suggests they might. I believe that most consumers really are just looking for something simple.
When you want to watch television you don't want to have to pare things out between your computer and your iPod and your Apple TV and all that. You simply want to go to your TV, use some sort of a remote control and bring things up. It's a lesson that we have learned from TiVo and DVRs and that sort of thing where everything is really intuitive and it all remains a TV experience fundamentally. It is not a computer experience on the television but a TV experience using computer and Internet technology.

So I think that, if we continue to see this sort of development from voodoo, things are going to be very promising for them. They're already on the radar screen of some potential acquirers. Reed Hastings from Netflix apparently has met with them recently although he was very noncommittal about what the purpose was.
But it also turns out that there are people who aren't quite as fond of Voodoo as you might imagine. One of those is the folk over at Podcasting News. They had a post titled 'Five Reasons the New Voodoo Movie Service Is DOA'. And here's what they write. These are the five reasons why they think that Voodoo is not all it is cracked up to be.

The first is kind of snarky. It says, "The Company has enough startup capital to employ 41 people. Yet it doesn't have the net marketing smarts to secure the Voodoo domain name." Apparently someone else owns that. So that's the first knock.
The second one is that it is competing with Apple and Microsoft directly with an offering that doesn't do a fraction of the things that the Apple TV or the Xbox 360 do. On this one I sort of take issue with Podcasting News because it seems to me that, based on what they are describing, the Voodoo box does something entirely different than what Microsoft or Apple is doing.

And while Microsoft or Apple have capabilities in that there are two units that do similar things, it's not the same. I believe that a computer free connection to streaming movies in TV quality on a TV really is different and meaningful.
The third item that Podcasting News offers up, "It's not cost effective. You would have to save a lot of money on DVD purchases to justify the $300 cost of a Voodoo." Again, this misses the point. If you've got the Voodoo, you have the ability to watch movies on demand. With the DVD, if you are using Netflix, you have to wait a couple of days to get it.

If you are using a local video rental store or video store to purchase, you have to go out and get it. If you just have an urge to watch the Godfather tonight, with Voodoo you can simply go and hit play.

The fourth knock, "It's all about on demand digital movies which haven't found a market yet and ignores one of the fastest‑growing areas of content on the Web, the video podcasts and Internet video."

Again, I think this takes the view of someone who is much more tech savvy. The fundamental point is that very few consumers, typical American consumers, are interested in video and audio podcasts right now. And that's just a fact of life.
As a podcaster I certainly want people to listen to me, but I also understand that this market is still evolving and there is a much larger market for people who want to watch movies on TV. I think that we have seen that on demand movies to work.
They certainly work in hotel rooms. They work off of the cable company machines that they put in your house ‑ the table set top boxes. So I think that this is a market that will work and if you have the kind of selection that Voodoo promises to have, that could make a real difference in the marketplace.

Finally, the fifth knock that Podcasting News offers up, "It's a closed single platform system. People want to watch movies on their TVs but they also want to watch them on their laptops and portable media players."

Again, I think this is the minority that we are talking about, not the vast majority of American consumers. The vast majority of consumers want to watch a feature‑length movie on TV. There aren't very many who want to watch them on a laptop and there are far fewer who want to watch them on an iPod.

These are small devices that are designed for portability and certainly if you are commuting on the train or something like that, you may want to watch on your video iPod. If you're flying across country as I do frequently, I certainly enjoy watching movies on my laptop from time to time. But recognize that that is the minority.
That's not the common consumer practice. Most people want to watch a movie on their television and Voodoo appears poised to offer them this. So I for one will be watching for Voodoo's launch. Frankly it sounds like the kind of gadget that I will probably have to pick up and try.

[music]

 

Chip:  Regular listeners to 'Disruptive Dialogue' will know that the future of media and niche media in particular are particular interests of mine. So I was very interested to read a post from Rich Screnta of Topics this week titled 'Mass Media Was a Temporary Phenomenon'.

He starts out by saying, "In 1960, an advertiser could spend $5 million a year and reach 160 million television viewers. With the right message and sustained over a few years, 85% message penetration of the audience was achievable."

But later in the post he explains that this is no longer the case. "The audience isn't huddled every night in front of these three TV channels anymore. And you can't reach them with five million of 1960 dollars. The audience is divided across 300 channels, DVDs, TiVo, iTunes, YouTube, BitTorrent, Flickr and millions of other options. Saturation marketing can cost something like $30 million plus for a few week blitz to launch a new movie."

So then Rich asked this question, "What if you wanted to saturate like they could in 1960 and drill your damn jingle into every consumer's head until there was no way they couldn't hear it when they saw the box in the drugstore? The cost to launch a new top tier brand from scratch starts at $150 million now. So it is more expensive to reach the same audience of people because they spread out into a billion different places."

He continues, "But it isn't the Net per se that did this. It was scarcity that caused people to huddle around the same a few media outputs in the first place."
What we are seeing here are really is dynamic change in the media environment. People have a lot more choices today and while they don't necessarily choose to use all of the options available to them, for example, I expect even people listening to this podcast may not be familiar with Flickr.

I know lot would be but some won't. I know of some people who aren't familiar with iTunes still believe it or not, which to me is amazing because that one seems to really be a ubiquitous band in the marketplace.

Nevertheless, people are making additional choices. I know, for example, that last night I was watching my wife's viewing habits and she was watching a show from the BBC. That's something that is a relatively new phenomenon. It was only once digital cable came into being a few years ago that people started to have those kinds of choices.

Previously you might have 50 or 60 choices on a really robust cable system. Today, as Rich says, it's 300 or more channels. In fact I know that our own TV system goes up to something like 600 and something including all the digital audio channels and on‑demand sports and all that sort of thing.

So there are more choices. And how do you reach people? I think this is where my argument for the niches comes into play. As more and more things splinter the environment, it provides it actually requires that brands start targeting their message more effectively.

But I believe that more than requiring it, it is actually a good thing for the brands because it means that you're not wasting your message on millions of people who don't care.

Frankly if you are selling something as ubiquitous as detergent, there really is a niche market that cares about the detergent and what the various qualities of it are. So target to those people, the demographics of the buyers who actually will make a decision.

It's much like in politics. It's very uncommon for a political campaign to target members of the opposing political party. It simply serves no benefit. There needs to be more of an effort to energize the base and reach undecided voters because those are the people which your message has an impact on.

The same thing now has to happen with marketers. There has to be a better job to use niche media, to target those people who are more likely to buy your product, to talk about your product, to promote your product, to advocate your company.
Those are the kinds of things, which if you do effectively, can have a real benefit for your company and frankly at much lower cost than you ever could in the past because you're not wasting your message on the wrong people.

Initially this may scare you off because sometimes niche marketing costs more per pair of eyeballs or pair of ears or whatever than would typical media. But when you actually look at the conversion rate for those people, if you actually look on the return on investment, I think you're going to find in most cases, if you are doing a good job of targeting, that it really is beneficial.

So throw mass media out as Rich says and focus on niche media.

[music]

 

Chip:  Should you talk to a reporter on the telephone? That's the question that is being tossed around the blogosphere lately in the wake of a kerfuffle between Jason Calacanis and reporter Fred Vogelstein from Wired Magazine.

It turns out that Vogelstein wanted to interview Calacanis on the phone about Tech Crunches' Mike Arrington, but Calacanis refused. He said he would only grant the interview by email. And in fact he then went on to discuss this on his blog with Jason.

It also turns out that another individual who was being interviewed by Fred for that story was Dave Weiner and he too refused to grant an interview by phone.
So the question is 'is this appropriate for a journalist to do?' Is it a good idea to grant a reporter a phone interview or should you insist on doing everything in writing? Ultimately Calacanis did have a conversation with Vogelstein, but he recorded it and he turned it into a podcast.

I have yet to listen to it myself so I can't comment on the content of it, but I have been following the debate in the blogosphere on this and there was a piece on Jeff Jarvis's blog over the weekend, or perhaps yesterday, Monday, where he quoted from Scott Rosenberg, who was talking about the episode. Rosenberg writes this, "It's undeniable that the pros prefer voters.

Partly it's because the phone is fast. The most senior level reporters today learned their craft when the phone was really the only channel available. Also it's because a good reporter can capture an extra bit of color by listening to an interviewer's voice and tone.

But mostly it's because reporters hope to use the conversational environment as a space in which to prod, weasel, cajole and possibly trip up their interviewee. Any reporter who doesn't admit this is lying either to his listener or to himself."

Now that's, I think, a little bit harsh on journalists. And I am not generally a defender of the media and reporter is but I will tell you that I do believe that there is a real benefit out of having a conversation over the phone or in person with someone.
It is true that when you are writing responses in email, you consider what you are saying more. And it is hard to discern actual meaning. Rosenberg addresses this and says that as a writer, Vogelstein shouldn't be saying that because he conveys meaning in words all the time.

However it is important to realize that not all interview subjects are quite as comfortable with the written word. They may use it for defensive purposes, but they may not be as artful in expressing themselves. I know that I frequently receive emails from folks and it is hard for me to know sometimes if they are being serious, sarcastic, humorous or what have you.

Sometimes the same words can be interpreted in different fashions. That can be a real risk actually if you are communicating with a reporter who misunderstands your tone. That's something much less likely to happen in a phone interview. Of course, on a phone interview it is possible that the reporter will transcribe incorrectly or take your words out of context, but I do believe that most reporters are not out to do that.

I also agree with Heather Green that it is easier to get follow‑up questions in a person‑to‑person discussion, either on the phone or in person. It allows data back and forth, give‑and‑take. While you can ask follow‑up questions in email, it's just not quite the same. It's not synchronous. It's not something where you just have a dialogue and it feels natural.

I know myself that if I am having a lengthy email conversation back and forth with someone, I usually tell them, "Let's pick up the phone. Let's talk. We can get through this quicker and hopefully illuminate more information in that way."

Rosenberg concludes his commentary that is quoted on Jarvis's blog by saying this, "In the online conversation, the reporter doesn't get the last word. And the reporter doesn't get to filter which parts of the conversation are available to the public. No wonder journalists want to stick with the phone. But I think it is going to keep getting harder for them to get their sources to take the calls."

Jeff Jarvis concludes the post by saying, in Jeff's words, "One blogger said I was issuing a dictum against phone interviews. No. I was just saying that it's the interviewee, not the interviewer that gets to issue dicta now."

And I think that's just a little misguided as well. This isn't about dicta; it's about trying to figure out how each interviewer and interviewee wants to handle things. Frankly, that's how it is always been. There have always been ground rules established between subjects and reporters and that's not going to be something that's going to change in the online age. It's just going to evolve in that there are different choices.
It's no longer a question of, are we going to meet in a coffee shop for an interview? Will you come to my office? Is it going to be recorded or not recorded? At what point do we go off the record or on background which I just have to say are very dangerous, so be careful about using such terminology.

In any event it's just an evolving negotiation and the issues to be discussed simply change over time. I personally don't believe that I would forgo all phone interviews. I certainly think there are instances where phone or email make sense but in each case it's up to the interviewer and interviewee to make that decision.

[radio break]

 

Chip:  I only have time for a very brief "What's happening in other podcasts" section today so I will do just that and keep it brief. I think that the most interesting topic being past around on other podcasts lately has been ghost blogging. And whether or not that's a good thing, bad thing. Ethical, unethical. Whether it violates transparency, etc. And there's been discussion in particular on the probecast podcast by Topaz Partners.

And also on for immediate release on this subject. Obviously there have been others as well. But those two are ones that jumped out at me. And I encourage you to listen to both of those recent episodes to hear what's going on. I believe it's probecast number 13 and the FIR number 236 were those topics recovered. And it deals primarily with a Topaz Partners' client that Topaz was ghost blogging for and there was no disclosure of this.

But at the same time the blog that was in question with the client was not signed. So it's not really ghost blogging to me if something is unsigned, because your simply saying, if it's unsigned that it's the views of the company. Or the views of the organization that is hosting the blog. So to me this is a bit of a kerfuffle about nothing but never the less something interesting to discuss. And I encourage you to check those two out.

[radio break]

 

Chip:  So in listener comments today we have one from a colleague at custom scoop. Ryan O'Rourke. And he writes about in response to last weeks discussion about pitching bloggers. And here is what he writes. "I'd be curious to hear your thoughts on how a blog's frequency of posts impacts readership and outside participation through comments, etc. In both the short term and long term.

Would you expect a significant increase in the average number of daily posts alone to boost overall participation in readership? Would it water down the importance of each particular post? And as a follow up you mention that pitching unfamiliar bloggers is OK as long as you do so in the context of building relationships. Let's say two such blogs have the same readership/Alexa rating.

But one features 50 posts a day and the other two. Who would you target first? Or is that not a significant concern?" Well Ryan first thanks for the comment and you've touched on a lot of issues here. So let me give you the blanket answer and then move on to a little bit more detail. The blanket answer of course is, it depends.
It's very difficult to say with any certainty, just based on generalities, what one should or should not do. And how frequency of posting impacts the credibility or participation of a blog. So let me just touch on it a little bit. Certainly the number of posts does affect readership and participation. And it's one of those things where like any medium you have to figure out what your readership is looking for.

And you need to try and match their expectations. And you have to deliver on the expectations that you set. So if you represent yourself as someone who's going to be posting once a day then don't suddenly change to do 10 a day without some sort of explanation.

Similarly if you've been doing 10 or 20 posts a day on your blog, if you all of a sudden drop down to one, that warrants some sort of a discussion with your readership as well because it changes how you are interacting with them. There are certainly blogs that are well read that have one post a day or even less. Take a look for example at Ray Ozzie with Microsoft.

He posts every couple of months but has massive readership and attention whenever he posts. At the same time there are blogs like Techcrunch or Paidcontent which may have five, 10, 20, sometimes even 30 posts a day and yet they have massive traffic and attention as well.

It really depends on what you're delivering. If you're focused more on commentary then I would suggest you probably would be at the lower end of the number of posts. If you are focused more on sharing news and information with your readers then you would tend to be on the higher end.

Myself with my blog I tend to do a mix of commentary and trying to inform my readers so I tend to be somewhere in the single digits. Maybe three to five posts a day. But it depends. There will be days where I only have one. And there may be days where I have six or seven. But certainly I'm never going to be a 20 posts a day person. And I try to have at least one each day.

As far as comparing two blogs and trying to figure out which one to pitch; that's an interesting question. I think really it comes down to your perception of where you're going to have the greater impact. Your talking about two blogs that have potentially the same level of readership but one has 50 posts and the other has two.

Your first instinct might be to focus on the one that has two because there's more attention perhaps being paid to it. But at the same time I think you really need to understand what the audience is. It's not simply about numbers of posts or numbers of readers, it's about how does that match up with the message that your trying to present. And of course my suggestion frankly would be that you reach out to both of those blogs.

There's really not a reason to avoid having dialogue with multiple blogs. It's not like the old media world where if you started talking to other reporters folks would get upset at you. Bloggers understand your going to talk to more than one of them. And frankly, having that dialogue and building those connections proves valuable to companies in the short term and the long term. In fact you may talk to both blogs and only one or perhaps neither of them will write about you today.

But you've started to build that relationship for the future. So go out there, talk to blogs, pitch blogs and you will have some good success I think. And of course remember disruptive dialogue is just that, a dialogue. It's a conversation between me and you the listener. So I encourage your comments. So submit them either in email or in audio format, and I'd love to have you participating.

[music]

 

Chip:  So that brings to a conclusion the 8th episode of disruptive dialogue. I'm glad that you stuck with me this long and I look forward to having a conversation with you next week. In the meantime I want to tell you about an event that I will be speaking at in a couple of weeks on May, 15th. The Yankee Chapter of the Public Relations Society of America.

In conjunction with Southern New Hampshire University is hosting a social media skills workshop. It'll be from one to five on May, 15th and it's about $50 give or take. The information on registration is at the Yankeeprsa.org website. So go ahead and check it out and find out about it. I'll be teaching that class in conjunction with Doug Haslem from Topaz Partners.

We'll be giving you some hands on instruction on how to pitch bloggers and podcasters. We'll talk about the importance of social media. And we'll have some hands on where you'll actually learn how to create your own blog and podcasts. So if these are topics that interests you I encourage you to come out for that event. In the mean time go ahead and share your comments and feedback on this weeks show.
I'd be interested to hear about anything from the format to the show to what you think about mass media, niche media. What you think about ghost blogging. What your thoughts are on the Voodoo media video download service. And of course your thoughts an any of the news items that I brought up. So until next week, good luck.

[radio break]

May 08, 2007

Disruptive Dialogue #9 - 05/08/2007

download Disruptive Dialogue podcastThe latest episode of the Disruptive Dialogue podcast is now available.  This one was recorded in Bow, NH and is a Curt Schilling special at 38:38 (Curt wears number 38 and his blog is 38pitches.com).  You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

Topics:

  • 00:34 - Welcome and apology to Bryan Person
  • 04:51 - News Item - BostonNow publishes bloggers in newspaper
  • 07:00 - News Item - Direct to AudioBook
  • 09:30 - News Item - Belgian Newspapers vs. Google
  • 11:56 - Commentary - Newspaper Publisher Says Free Content the Problem, Not the Cure
  • 17:30 - Commentary - Pew Study on Technology and Communications Trends
  • 25:30 - Comment from Doug Haslam
  • 28:05 - Comment from Brian Griffin
  • 31:58 - Comment from Sarah Wurrey
  • 32:40 - Comment from Brian Helfrich
  • 36:37 - Wrap-up

Show Notes:

To Comment:

  • Leave your comments here
  • Email me your comments in MP3 format (no more than 2 minutes and 5 MB, please)

May 02, 2007

Transcript for Episode 7

Listen to the April 24, 2007 podcast here.

Chip: Hello, and welcome to the seventh episode of Disruptive Dialogue. I'm your host, Chip Griffin, and I appreciate you taking the time to tune in to this week's podcast. If you're a first-time visitor, I hope you'll find the content interesting and entertaining and will continue to stick around. If you're back again, I really appreciate you finding value in this podcast, and I hope to continue to deliver on that promise going forward.

As always, remember that Disruptive Dialogue is a two-way conversation, and I look forward to your comments, because if I don't have your comments, it's not really a dialogue, now, is it?

This week I have three segment that I think you'll find all interesting and informative. The first is on one of my favorite topics. It's the future of media, and this week we had a trifecta of news on that subject, so we'll dive right into that after this open, and then we'll move on to some discussion of pitching bloggers and how to do so effectively, and some different points of view that emerged in the past couple of days amongst bloggers.

And finally we'll move into some discussion about podcast sponsorship. No, not this one. I'm not looking for sponsors at this point for this podcast. We're still a little young for that. But hopefully it will provide some insight into what we're doing at Custom Scoop on the podcast sponsorship front and what we're thinking about doing in the future.

And after those three segments, we'll be back, and we'll wrap things up and talk a little bit about next week's show.

[music]

The future of media. Frequent listeners to Disruptive Dialogue know that that's one of my favorite topics, and something that I tend to dwell on quite a bit. And this week we have a trifecta of news and views to take a look at, ranging from television news and what the future of that should be, to what iPods mean for radio, and other outlook on the radio industry, and newspapers and online ad revenue.

So let's jump right in with the future of TV news. This is sort of a thought-provoking piece that Dave Winer put on his blog. Dave is basically the founder of blogging, if you will, or at least one of the founders of it. He frequently has points of view on how media should evolve, and yesterday, Monday, April 23, he had a post that talked about the future of TV news. And he said that he was watching MSNBC when a Virginia Tech story came up, and he said this:

"I had a flash, I want a checkbox that tells MSNBC that I don't want any more Virginia Tech stories. Then came breaking news that Boris Yeltsin had died. In my ideal news system, the screen would refresh and a checkbox entitled Yeltsin would be added, checked by default. If, after hearing the first report, I didn't want to hear more, I could uncheck it."

He goes on to say, "I think this is another form of the River of News, the checkboxes represent subscriptions. I could see MSNBC including stories produced by CNN, and sharing revenue with them. The goal is to get the best news experience tailored to the interests of specific users."

This is really a thought-provoking piece, and I'll include the link in the show notes, and I would encourage you to go take a look at it. Now, I don't agree with everything in here. I don't think that MSNBC is going to be showing CNN video anytime soon. But I do think that there is room for customized newscasting in the video format.

Now, whether that comes initially off your cable box, or perhaps it's someone who does a good job of making that Web accessible, I'm not really sure, but I think that there are some possibilities in this space, and it's definitely worth thinking about. Certainly I would be interested in video news that I could tailor to my needs so that I didn't see the same old discussion over and over again like is so often the case on cable news today.

The next item comes from Arbitron, and this is something I read about in, I believe it was Podcasting News. It's a study about the radio industry. It's an annual report that Arbitron puts out and takes a look at listening habits of Americans. And the Podcasting News take on it was that iPod usage was eating into radio listenership. And I'm not sure, as I've looked more into the study, that it really fully backs that up.

What it suggests is that something less than 10% of people listen to less over-the-air radio because of their mp3 player. So there is some impact there, but it's in the single digits, statistically speaking, so, something to watch, but I'm not sure that it's something dramatic yet.

But a couple of other things jumped out at me as I was looking at the executive summary of the report. The first one was that people are still listening to radio, and think it has a significant impact on their lives. This goes along with my general point of view that traditional media is not dead, it just needs to evolve. And here's what the Arbitron people said:

"Nearly one in five, 19%, of consumers, said radio has a big impact on their lives. It ranks second only to mobile phones at 35% as the audio platform or device that has the biggest impact on the lives of its users."

So, clearly, people still care about radio, and it still matters, so let's not proclaim radio just yet, shall we?

The next item that they had was that radio audiences are about steady over the past few years, at 29 million, so there's not really any increase or decrease, which sort of makes sense to me. I already talked about the iPod issue. And then there's some bit in there on podcasting, and you can imagine that the Arbitron people aren't necessarily podcast fans, since their primary business is in measuring the radio, but they say awareness of podcasting has jumped from 22% in 2006 to 37% in 2007.

So that's good. More people are starting to become aware of what podcasting is. But now, here's the bad news, folks. You're part of an audience that really isn't growing. And I'm not just talking about for Disruptive Dialogue. Hopefully my audience will grow.

But for podcasting generally, it says, in that same period of time, from 2006 to 2007, those having ever listened to an audio podcast have risen from 11% to 13%. That's not really a statistically significant increase, so clearly we still have some room to grow the podcasting arena and get more people to tune in.

And the final item I had on the future of the media this week is about newspaper and online ad growth. This is something that I read about on paidContent. David Kaplan, who's one of their writers over there, I guess, who I am not familiar with, he writes about the Q1 earnings reports from various newspapers and relies heavily on a "Wall Street Journal" piece that was published on Monday.

The headline of the "Wall Street Journal" piece was "Paper's Web Hopes Dim a Bit", and let me just read from the open of that story. It says:

"Even with all the grim news the newspaper industry has faced in recent years, publishers have consoled themselves that they have a lifeline. If they could switch content away from print and onto the Internet -- bringing advertisers with them -- they could save their businesses.

"Last week, that lifeline began looking frayed. New York Times Co. warned Thursday that online advertising growth this year won't be as strong as the 30% it had projected. On the same day, Tribune Co. reported that the growth rate for first-quarter interactive revenue was sharply lower than a year earlier. Gannett Co. likewise said online revenue growth slowed in the first quarter from a year earlier."

So, some indications that perhaps all is not well on the newspaper front, and that they are not adapting well enough to the online environment to take advantage of it.

I would, however, note that all of these are talking about declines in the rate of growth, and not saying that it's not still growing, so that's an important distinction, because things can grow at a slower pace and still be important.

One bright spot was the Dow Jones & Co., the publisher of the "Wall Street Journal," according to this article, reported a 30% growth in online ad revenue in the first quarter, which was up 26% from a year earlier.

A few other interesting things that jumped out at me in this article, and one was some information from EMarketer, which is a market research firm, and it said that they predict that the overall growth of U.S. online ad revenue will slow to 18.9% this year from 30.8% last year. So, really, what we're seeing in the newspaper market is similar to what's going on elsewhere online, and, in fact, the article says it predicts newspapers will do slightly better than other outlets online.

The other thing that jumped out at me, and I think this is really significant, and this is not something that I've seen quite so much of before, but I really think that it deserves some attention, it says this:

"One major issue for many newspapers online: Roughly 70% to 80% of their online revenue is tied to a classified ad sold in the print edition -- known as an upsell."

Now, what that suggests is that the real revenue stream here that's being jeopardized is not so much online advertising per se, but it's classified advertising. And classified advertising is a whole different animal.

Classified advertising is under assault from so many different fronts. It's under assault from sources like Craigslist. It's under assault by eBay, because while that's an auction site, it really takes the place of a lot of old classified advertising in your typical newspaper.

So I think we really need to start seeing these newspapers segregate out the classified ad revenue versus the display ad revenue online, because it would be really interesting to see what the dynamics are there. If the classified advertising online is decreasing, and that's really what's going on here, then it's a whole different story, and we really need to analyze it differently, because the dynamics are different for display advertising, the kinds of things that actually provide value to the content or return value for the content that's online, versus the classified advertising, which is really a separate marketplace and almost tangential to the content of the publication.

So it would be very interesting to see where this all heads, but I'll be keeping an eye on this, and I'm sure we'll be talking about it more on a future episode of Disruptive Dialogue.

[music]

The myth of "cultivating bloggers"'--at least, that's what Ben McConnell of the Church of the Customer blog calls it when a PR probe pitches a blogger whom they don't know.

Let me go back to the beginning. This is a post on the Church of the Customer blog that appeared, I guess, sometime late last week. And what it said was this: It took issue with a quote in a publication that suggested that companies ought to "cultivate popular bloggers in much the same way they traditionally have sought to make contact with reporters for newspapers, TV and other media."

And so Ben McConnell responds to this. He says, "Bloggers are not traditional media, so the last thing a PR person should do is create another column on a spreadsheet that includes bloggers in future email blasts." He says, "PR companies could actually become more strategic service providers by helping their clients cultivate relationships with existing, well-connected customers. Appeal to the people who already love your clients and foster those relationships."

He concludes the post with, "Save your client some money: stop pitching bloggers you don't know."

Now, this prompted a number of people to respond, including Shel Holtz, who had a lengthy post on his blog, "A Shel of my Former Self", and he goes through sort of a point-by-point rebuttal. Let me just read a couple of excerpts from it, and I will put the link in the show notes so that you can go and read his full response, but he says this:

"I can't remember ever disagreeing with anything I've read at "Church"--and I read everything--but I disagree with this one. It's true that bloggers are not reporters and cannot be pitched the same way. In fact, a lot of mainstream media shouldn't be pitched the way a lot of PR people pitch mainstream media--but that's another post. And McConnell and Huba are right to advise companies to build relationships with key customers. However, there are more options than (A) pitch bloggers like media, and (B) ignore bloggers."

He goes on to say, "I've been involved in several blogger outreach efforts recently. In each case, I carefully read several posts and comments, along with "About This Blog" details, then crafted an individual message to that blogger. One, for instance, was part of Jeremy Wright's B5 blog network, so I noted that I knew Jeremy and that he'd vouch for me, if the blogger wanted to check me out before replying. Her reply specifically noted that I seemed to know what I was doing: 'Thanks so much for your nice letter- it's definitely different coming from someone who knows blogging,'" she wrote.

"In fact, most bloggers appreciate solid content they can write about that's consistent with the focus of their blogs, assuming you approach them correctly."

And I agree entirely with what Shel is saying here, and I actually wrote my own post on Pardon the Disruption titled "Church of the Absurd" that also took issue with what Ben McConnell wrote. And I think Ben sort of heard some of this criticism, primarily from Shel, and he actually updated his post, and also left the following comment that I'm going to quote from on Shel's blog.

He says, "Thanks for the thoughtful comment, Shel. My point is that a PR pro who first shows at my digital door with pitch in hand is no different than a door-to-door salesman. No relationship established, just a salesperson for an idea."

So what he goes on to say in the update to his blog post is that, "The last sentence may have been too subtle. Its implication is: Get to know bloggers before pitching them. Build a relationship before a pitch. Introduce yourself to a blogger with an email or phone call. Explain your work and your clients. Ask the blogger if future news about your industry or clients is of interest to them. Seek permission. Relationship-building goes a long way. To me, the lack of relationship-building with those whom they seek to influence is the primary sin of PR."

And I would agree, to the extent that PR professionals don't care about building relationships. But I would argue that most good PR pros do care about that and do try to do that. But there are going to be circumstances where you're working for a client or a company, and you find a blog that you think would be a good match for your pitch, and you don't have a preexisting relationship.

In the Ben McConnell view of the world, you would have to ignore that blog until you had built a relationship, whereupon it would probably be too late to make the pitch. In Shel's world, in the world view that I endorse, it's OK to reach out to a blogger for the first time with a pitch, as long as you do so in a reasonable way.

Make sure you've taken a look at their blog and you see what they typically write about. When you give the pitch, include something in there that acknowledges that you've read the blog, and perhaps that you're trying to tie this in to a current or past post that the blogger has online. Do something that really signals that you're tailoring this pitch to the individual, and that you're not simply blasting it out to a group of bloggers.

If you try to do things this way, and if you make a pitch in the correct way, I think you will have good results, and for the most part, certainly not in Ben McConnell's case, but for the most part, you will get a positive response from bloggers. They may not write about your issue, but they'll certainly be receptive to hearing what you have to say.

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So I thought I'd take a couple of minutes and talk about the value of podcast sponsorships. There's not a whole lot of that going on right now, but it's something that we at Custom Scoop have been experimenting with now for two or three months.

We've been sponsoring the "For Immediate Release" podcast, the Hobson & Holtz Report with Shel Holtz and Neville Hobson, and basically what we've been doing for the past couple of months is getting Neville to read, oh, about a 45-second promotion that would rotate on each show.

We found that this did wonders for increasing our overall profile. I know that when I've talked to other people in the industry, they now seem to know more about Custom Scoop than they did before. And, of course, more importantly, we've actually generated some sales from this process, so we're quite pleased with that.

We did get some feedback from some FIR listeners in the past week or so that suggested that perhaps the spots that we were doing were getting a little stale, since it's a twice-a-week show, and we had probably two or three spots that rotated through, they were hearing the same things over and over again. And around the time that we had this listener feedback, I sort of had come to the same conclusion myself.

As a regular listener to FIR, I do the time codes for the show on the wiki on a volunteer basis, and so I hear the show through each week, twice a week, and I thought they were getting a bit stale, too, so I spent a little bit of time thinking about what the alternative might be.

We recently started doing a media-mongering minute for FIR, where about 40 seconds or so of the content is something that's a tip, or news, or information, something that the listeners to FIR can actually take advantage of, and then the remainder of the time, about 15 or 20 seconds or so, is devoted to giving out our URL as well as just a five- or six-word description of what it is that we do.

So we're going to try that now for a couple of weeks and see what the listener feedback is, see what the reaction is, from our end, as far as whether we get the same level of response that we were getting out of the old audio ads, but I'm very hopeful about it. I think that it shows that we can do a lot with the podcast medium as far as listening to what people want to hear and trying to tailor the content of an ad so that it's more suitable to the audience.

More importantly, I think it gives us an opportunity to demonstrate that we're trying to be an industry resource at Custom Scoop, and not simply a sales and marketing medium.

Now, of course, the success that we've had with FIR has caused us to go back and say, "Well, gee, should we be looking at other podcasts that we want to sponsor?" And, basically, the decision there is "yes", so we're starting to begin discussions with some other podcasters in the marketing and PR space to see if there might be some other synergies that we can find where a show might be looking for a sponsor and we might be able to fill that need and help continue to raise our profile and generate sales.

So if you happen to be listening to this, and you're a PR or marketing podcaster, I'd love to hear from you, and we can begin that discussion and see what might work out. As you've seen from the FIR deal, we're not looking to do a hard sell. We're really trying to be that information resource, and to improve our profile and encourage people to try out our product.

So I encourage all listeners to the show, whether you're looking for sponsorship for a podcast, or if you've got something that you think might serve a good purpose to promote on a podcast through a sponsorship, check it out. Podcasters could certainly use the extra money to defray their costs. Obviously these aren't deals that are going to make anybody rich by any means, but if we can try to get podcasters matched up with sponsors, I think that does great things for the industry.

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And that'll bring to a close this week's episode of Disruptive Dialogue. I appreciate you taking the time to listen all the way through, and I look forward to hearing what you think about the future of media and how to pitch bloggers. I'd also be interested to hear what you think about our podcast sponsorship program at Custom Scoop, and what your experiences may be, or how you plan to use podcast sponsorships in the future.

Now, for next week's show, I'm going to try out something that other folks have been doing, and I'm going to be soliciting some ideas for topics. I'll put up a little note on Twitter about the show, and I'll be asking for people to submit their ideas there.

But if you already have an idea for next week's show, or you have one sometime over the next week or so, go ahead and email me with your suggestion to chipgriffin@Gmail.com. I look forward to hearing from you, and I look forward to speaking with you all again next week. Until then, good luck.

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Announcer: For show notes and more information about this podcast, please visit www.disruptivedialogue.com. Or visit Chip's blog at www.pardonthedisruption.com. To share your feedback, you can call the comment line at 206-424-4733. Or you can email your comments as text or as an mp3 file to chipgriffin@Gmail.com

May 01, 2007

Disruptive Dialogue #8 - 05/01/2007

download Disruptive Dialogue podcastThe latest episode of the Disruptive Dialogue podcast is now available.  This one was recorded in Bow, NH and is a bit longer than usual at 38:16.  You can download this podcast as an MP3 or subscribe to the RSS feed to make sure you never miss an episode.

Topics:

  • 00:34 - Opening & Introduction
  • 02:27 - News Item: Newspaper Circulation
  • 03:48 - News Item: Have We Reached the Peak of Mount Blog?
  • 07:10 - News Item: Dell Rethinking Direct Sales
  • 10:08 - A Look at Vudu's Movie Download Service
  • 19:16 - Mass Media/Niche Media
  • 24:03 - Phone vs. Email Interviews
  • 29:41 - What's Happening in Other Podcasts - Ghostblogging/FIR/PRobecast
  • 31:04 - Listener Comments - How Blog Frequency Impacts Influence/Participation
  • 36:15 - Wrap-up and Announcement of PRSA Yankee Chapter Social Media Skills Workshop with me and Doug Haslam of Topaz Partners

Show Notes:

To Comment:

  • Leave your comments here
  • Call the Disruptive Dialogue comment line: (206) 424-4733
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