Category Archives: Business Models

Round up of my Chinwag events

Sheesh, is it really six months since I left Chinwag? Crazy times. Half of my hybrid role there (the other being planning, wireframing and launching/editing the new website) involved hatching ideas for and bringing to life their wish for an events programme…

Chinwag Live banner

What shall we call it, Sam mused, when I joined in October 2006. I processed this while getting other stuff done. A few hours later I blurted out “It’s a bit cheeky, but how about Chinwag Live?”. So, he asked with his customary chortle, what’s it all about then D? “Casting light on trends in the digital media and marketing industry” I reasoned, deadpan. Actually, it was Sam who insisted we add the words “and marketing“.

Chinwag Live: Media Widgetised - part of Widget Week 2007

Me introducing Chinwag Live: Media Widgetised - part of Widget Week 2007

So I got onto it. Oh yeah, and the marketing and the PR and the whole social media fandango. Bloggishness? Obligatory. Old skool press release? Easy. Facebook Goup? In an instant. Upcoming? Check. Oh, now we need a Facebook Page too huh? Sorted. Flickr photos of every event? At once. Multiple Twitter accounts? We have the technology. Endless networking across the digital fleshpots of London (and Texas)? But of course…

All the good people at Chinwag Live: Media Widgetised 16th May 2007

All the good people at Chinwag Live: Media Widgetised 16th May 2007

It would all be nothing of course without the thousands of incredible people who were there over the 24+  events… Whatever happens with the recession and the government’s Digital Britain initiative, I know that the UK is a very special place for digital debate and enterprise…

Chinwag Big Summer 07 sponsored by Channel4, Adobe, Neutralize, Agency.com and The Big Chill

Chinwag Big Summer 07 sponsored by Channel4, Adobe, Neutralize, Agency.com and The Big Chill

Here’s a run-down of the Chinwag Live events that resulted during my tenure, plus the offshoots: Chinwag Clinic; Widget Week 2007; and not forgetting Big Summer ’07 – officially the biggest ever party for digital practitioners in the UK with some 2,000 folk attending.

Chinwag's Big Summer party 5th July 2007 dancefloor moves to The Big Chill's DJs

Chinwag's Big Summer party 5th July 2007 dancefloor moves to The Big Chill's DJs

MY CHINWAG EVENTS CALENDAR:

Chinwag Live: Wobble 2.0 – 6th Feb 2007

Chinwag Live: Mobile Metamorphosis – 26th Feb 2007

Chinwag Live: PPC Earthquake – 27th Mar 2007

Chinwag Live: PR Unspun – 24th Apr 2007

Chinwag Live: PPC Earthquake @ Internet World – 2nd May 2007

Chinwag Live: Media Widgetised – 16th May 2007

Widget Week 2007 – 14th-22nd May 2007
(in collaboration with Mobile Monday & NMK)

Chinwag Live: Dark Side Of Social Media – 19th Jun 2007

Big Summer ’07 – 5th Jul 2007
(a superhuman team effort!)

Chinwag Live: Web TV Takeover – 18th Sep 2007

Chinwag Live: Media Widgetised @ Ad Tech London – 27th Sep 2007

Chinwag Live: Xmas Futures, Crystal Balls? – 5th Dec 2007

Chinwag Live: Skills Emergency – 29th Jan 2008

Chinwag Live: Measuring Social Media – 18th Feb 2008

Chinwag Live: Tomorrow’s Ad Formats – 18th Mar 2008

Chinwag Live: User Centered Advertising (with Manchester Digital) – 15th Apr 2008

Chinwag Live: Real World Usability – 22 Apr 2008

Chinwag Live: Measuring Social Media @ Internet World – 30th Apr 2008

Chinwag Live: Micro Media Maze – 20th May 2008

Chinwag Live: Search vs Recommendation – 2nd Sep 2008
(in co-ordination with Elizabeth Varley)

Chinwag Live: Micro Media Maze @ Ad Tech London – 24th Sep 2008

Chinwag Clinic: Search Marketing Surgery – 30th Sep 2008
(in co-ordination with Elizabeth Varley)
[Testimonials For Search Marketing Surgery]

Chinwag Live: Search and LBS – 7th October 2008
(in co-ordination with Elizabeth Varley)

Chinwag Live: Social Media ROI @ Ecommerce Expo – 28th Oct 2008
(in co-ordination with Julia Eilon)

Chinwag Live: MoSo Rising – 11th Nov 2008
(in co-ordination with Julia Eilon)

Chinwag Live: Xmas Futures, Crystal Balls? – 2nd Dec 2008
(in c0-ordination with Julia Eilon)

That is all.

Want more? Are you for real? Okeydoke, here’s a round-up of My NMK Events.

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Joining the dots at Chinwag Live MoSo Rising

On November 11th 2008 a cross-section of mobile and web practitioners assembled to discuss the ascent and future of mobile social networks and media. It was the second mobile-focused event in a row for Chinwag this autumn, but the discussion was completely different – see my previous post.

Chinwag Live Moso Rising Nov 2009

Unfortunately, someone in the audience repeatedly disrupted it right at the beginning, which threw the panel off slightly, and it took some time for the discussion to find its sweet-spot.

Speaking to jamescoops of mjelly afterwards, I totally agreed with his view that events like this need to begin from some kind of shared framework of understanding, from which they can then progress to a fruitful debate, and in doing so also surface and deal with the blind-spots of the audience, as at Chinwag Live events the diversity of specialism and experience is broad – a state of affairs which (for good reasons) I think should be cherished.

To try and make up for this here, I’ll quote from the event description that was co-written by myself and Julia Eilon:

“The rise and rise of mobile social networking and services is upon us, but is ‘mobile access’ enough or do users seek more?

Spurred on by web leaders like Facebook and MySpace and with lower data charges spreading for mobile web access, mobile social usage has soared. Are location-based services going to be key to its success, or is there more to the future of this most social of devices? How can brands engage in the mobile social space?

Will there be a battle for survival among the current myriad of mobile-only social networks and video / blogging platforms, or can they succeed with focus on novel functionality and user experience? Should online niche social networks also make the move to mobile? Where are the revenue streams and how effective can the ROI be?”

PANEL:

Harry Blunden – Head of Digital, ?WhatIfInnovation!
Justin Davies – Founder, NinetyTen / BuddyPing
Alfie Dennen – Co-founder & CEO, Moblog
Chris Seth – MD Europe, Piczo (unable to attend at last minute)
Roy Shelton – CEO, Next2Friends
CHAIR: Bena Roberts – Mobile Media & Advertising Consultant, Founder & Editor, GoMo News

What follows are some excerpts from my notes. The full-fat podcast will be out soon…

Business models and traction

Roy Shelton – when Next2Friends started they thought they could charge subscription, and then build it up around advertising, but now they’re using it mainly as a white label service to power others’ services.

Alfie Dennen (who has also been busy with some noteworthy personal projects) spoke of the phone as a vector. There’s no chance of traction unless an operator / carrier deck deal is in place. So Moblog has done white label products. Practically speaking, there are quite a lot of ways you can make money from mobile social platforms and services, but it’s still quite guerrilla, he stressed

Justin Davies – the network operators will be key. Think of the power of being able to take a picture and instantly send / share it with my address book.

Jay Cooper from Blyk (in the audience) challenged this, saying Blyk have proved that the ad-funded model can work – it’s not about technology, it’s about having a community. Panel members countered that it was rather about Blyk’s very unique business model 🙂

Who, why, what, when and where..?

Next2Friends are working with the UK’s biggest gay social network to enable real-time posting of photos to the web based around voting upon “who do I want to sleep with tonight?”

Alfie – in China there’s an issue with LBS in that you can’t say where a lot of things are. Moblog had to write an algorithm that screwed up the location slightly.

Justin – just to get the location licence you have to jump through a lot of hoops with the operators, but ultimately, in terms of revealing your location on LBS, it’s up to the user. We need more regulation, and to know and think about the boundaries surrounding us and the legalities surrounding that.

Roy – the advice Next2Friends were given in the UK and US was very different, so they went down the self-policing route. UK is also governed by OFTEL (now OFCOM) regulation of content for under 16s.

Courting brand relationships…

Conor McKenna of mobile social search engine Taptu asked: what should brands be doing and what should agencies be putting in front of them?

Harry Blunden of WhatIfInnovation addressed this, flagging up “branded utility” as a hot idea (although not so new – I first heard of it from Simon Andrews in August 2006), and social networks on mobile are in that space. WhatIf have been looking at brands and mini meet-ups – for example beer voucher giveaways driven by social network awareness.

Harry Dewhirst from Ring Ring Media pointed out that simple campaigns like Flirtomatic’s incredibly successful Strongbow offer showed how direct marketing and response will work in this space. More sophisticated targeting is also possible, he added, and it could drive some fantastic campaigns.

Forecasts for (next year, I think) on mobile are a billion for Myspace and 4 million for Facebook. [NB. I didn’t note if this referred to revenues or users, or who said this; I’ll update when podcast is released]

Harry continued that Ring Ring advocate cross-pollination of social nets and off-deck, as well as ads and placement on-deck.

Luis Carranza from Iris Digital observed that the term “mobile advertising” sets up an assumption that it’s just broadcast and online advertising transferring onto the mobile phone, but we need to improve and evolve the marketing approach so that’s is attuned to the medium. Harry Blunden put a different spin on this, stressing that social networks are just an innovation in digital communications.

Courtesy of Chinwag

Courtesy of Chinwag

I can haz mobile web access?

Jez Dutton, a senior planner from Glue, asked about the key drivers from the consumer perspective, and what are the cost issues?

Speaking with his developer hat on, Justin Davies said that 4 or 5 companies will end up controlling access to applications, but you also need to be aware that you can’t develop an app that is similar to one Apple already have.

In terms of countering the billshock that accompanies metered access to the mobile web, Alfie reckoned that bundling Facebook with Orange was a red herring. I’m not quite sure how this follows, but I’m sure he can set me right on this… 🙂

Harry Blunden countered this directly – it’s the original online social networks (Facebook, Myspace, etc) that have driven mobile web adoption, and the experience is improving because of the services and usability they have offered on mobile.

Is mobile the leader of the pack?

Another good question came from the audience in the form of this poser: is the social net phenomenon predicting what is already happening to us on our mobile phones (was Facebook the peak?) or [in the words of the song] is this just the beginning?

Harry cited the Accelerometer in the device [it’s in the iPhone, and some N Series, S60 and Sony Ericsson models from my brief scan of the web on this, and of course has been widely toyed with] – as a an omen of coming improvements in usability and user interface. Alfie observed that the iPhone is not the second coming, it’s just a sign. It’s a necessary evil given the Apple lock-in. The question is more “what will Nokia do?”

Channel 4’s mobile work around the Embarrassing Bodies series was more to his liking. They got 55,000 downloads of information on mobile after they offered a text-in service to receive more information. The context of mobile as a personal device was key to uptake, Alfie explained. How many people would want to download content about that topic to their PC, when, for instance, partners or family members might also be able to see or access that information? On mobile, it made sense.

Conor McKenna made the point that a lot of people who are using mobile web aren’t online [ie. on a computer] much or at all, such as taxi drivers and doctors.

Explaining the evolution of Next2Friends, Roy Shelton said firstly it was about early adopters; the second wave was creative types, aspiring film-makers and the like; then the social shopping function emerges with sharing and getting opinions. Conor chipped in that mobile social is big in parts of Eastern Europe, with ItsMy going ballistic in Hungary.

Luis from Iris revealed that they’re launching two social networks on mobile handsets in the next year. With time running out, Luis asked – what is the one thing that you would say to mobile customers? For Alfie it was “be there” (though his voice dropped an octave, he was only half joking); while Justin directed his message at producers: “keep it simple.”

PS: I’ll update this post with the RSS and iTunes links when the podcast is released.

PPS. I’m *still* semi-sulking coz no-one, at the event or elsewhere, has mentioned the Jim Morrison allusion in the event title 😉

Micromedia futures or the emperor’s new clothes?

Disposable, atomised media is all the rage and I’m as guilty as the next person of wallowing in it.

Web 2.0 and all its trimmings is no exception to this trend, in fact it glories in all things transient.* But what does it add up to? This question is an itch worth scratching, so sometimes we revisit particular events after their initial outing.

Chinwag Live: Micro Media Maze at ad:tech 2008 L-R Miles Lewis of Last.fm, Umair Haque, Steve Bowbrick

Chinwag Live: Micro Media Maze at ad:tech 2008 L-R Miles Lewis of Last.fm, Umair Haque, Steve Bowbrick

Which is why, after it’s May 2008 debut (which garnered some good coverage), Chinwag Live took the Micro Media Maze panel on tour to the annual ad:tech London expo in Olympia on September 24th 2008, for an afternoon session on the issues of widgetised, disaggregated media – exploring the trends they embody and are driving forward.

PANEL:
Umair Haque – Director, Havas Media Lab /Bubblegeneration / Harvard Business Online
Miles Lewis – SVP European Advertising Sales, Last.fm
Nick Halstead – CEO & Founder, fav.or.it
Chair: Steve Bowbrick – digital media consultant & entrepreneur

Steve Bowbrick opened by remarking that we’re coming to the end of the IP4 phase of the internet and moving into IP6 (what happened to IP 5 nobody knows). In IP 6, there is 2 times the power of 52 addresses to every star in the universe.

This fits with the trend that we see emerging today in the digital world of everything being connected to everything else.

Every device – whether it’s a PC, or a phone – can have its own address in the IP space, Steve said. Steve I’ll raise you a bunny and the arrival of that old stalwart the interactive fridge 🙂 . Conjuring up a picture of billions of interconnected end points, this reminded me somewhat of Bruce Sterling’s concept of spime but I digress…

The micro media era – content unbound

Micromedia” – a term coined independently by both panellist Umair Haque and new media theorist Lev Manovich in 2005 – held out the promise of content being able to move between these fixed places (or IP points), to be unbundled and rendered remixable; the resulting formations of which could unlock new sources of value. Steve Bowbrick didn’t mention this explicitly, but it’s worth revisiting Haque’s original 2005 Media Economics Powerpoint presentation. The implications certainly informed the discussion.

Nick Halstead of fav.or.it observed that widgets are catering to the ability to customize, another trend we’ve seen explode over the last few years as media becomes more personalised. In turn, the widgets provided by MyBlogLog, Digg, etc, are using the medium in a very viral way, he noted.

fav.or.it’s widgets expose what widgets are popular on fav.or.it. There’s also an attention tracking element to their widgets, Halstead explained, as they’re tracking the number of seconds each user who has installed the widget spends on it and on the sites / URLs visited via the widget.

Widgets and the media balance sheet…

Last.fm now has 21 million users and an additional 19 million more people coming in through widgets. But they have a problem, as their SVP of advertising Miles Lewis explained. They can’t monetise people who only visit and experience Last.fm on widgets, and hence can’t pay for the music rights (publishing, recording and streaming rights).

Currently, there are 350m active Last.fm widgets [I need to check the podcast coming this week to verify this figure], and they also have free streaming on the iPod. Their recent re-design has helped them in terms of streaming rights and deals with the labels, Lewis explained.

But, Steve Bowbrick asked, isn’t that reversing the entire widgetisation trend? To which Lewis replied:

“It’s less about reversing a trend than it’s about building a bigger widget that has an ad on it.”

‘Last.fm In A Box’ is a new solution they’re working on, Lewis revealed [see Mashable and CNET‘s coverage of the announcement in June 2008]. If you click on the link, it opens a player and a commercial message starts that you can then minimise if you wish to proceed immediately. It’s on Rockstar.com on the Guitar Hero game.

Nick Halstead of Tweetmeme & Mile Lewis of Last.fm

Nick Halstead of Tweetmeme & Miles Lewis of Last.fm

Trojan horse for toxic media?

Umair Haque took the premise of widgets – and media more broadly – to task.

“We need to step back and realise that if we use widgets to bring the same old paradigm, that trend will eat itself, as it has done on Wall Street. The stuff we trade in, in media, is in danger of becoming toxic waste.

Now I’ve heard of toxic boyfriends and toxic hangovers before 😉 , and this week’s been all about toxic debts in financial markets, but toxic media was a new one for me. Haque posited an alternative:

“Ads have to become benefits for consumers – communication as benefit, not cost. Media and communications need to help people improve their abilities.”

“But most media – all the stuff we’re surrounded by here at ad:tech – is about making stuff 1% more efficient than it currently is. Most widgets are just distribution mechanisms for the same old junk, and these widgets are about amplifying the devaluation of that junk.”

Off-the-peg widgets for social networks

From the audience Miko Coffey asked the panel’s view on Widgetbox, which allows creation of widgets on the fly that run on Bebo, Myspace and the like.

Miles Lewis replied that Last.fm are open source. Nick Halstead explained that fav.or.it supports Creative Commons licensing, but the problem is that many of these sites promise to deliver widgets that work everywhere but they’re still not mass market enough.

Another audience member from a charity told how they had created an alcohol tracking widget, where users could enter their intake of alcohol and track how that changed and added up over time. How could they get older people to use this widget, when use of this media is dominated by a young audience?

Game-changing moves and creating new markets

Umair Haque turned the question around.

“Nintendo would never have created the Wii if they’d asked who the average game player was. Ten years ago, we never would have thought that old people would be playing games.”

Implicit in Haque’s statement was the understanding that Nintendo have eschewed recycling the same old ideas and assumptions in a new wrapper. Instead, they have done something different and created a whole new market in the process.

He cited companies like Kiva, who have pioneered micro-lending to entrepreneurs in developing countries, as salutary in that regard (the Grameen micro-financing initiative is in a similar vein and was recently mentioned by Vint Cerf in a piece for The Guardian). They show how enabling micro-transactions in a counter-intuitive fashion (from the financial norm in this instance) have been incredibly powerful and transformative.

Business models and the limits of social media

Another audience member who only wished to be identified as coming from “a social networking property”, asked about Last.fm’s business model. Lewis explained it was fourfold: advertising, affiliates, subscriptions, and on the biz dev side, a client like a retailer could use Last.fm In A Box to stream music and place an ad it, so people could listen to that while on the retailers website.

I took this to mean a white labelled widget or plug-in powered by Last.fm that adds ambience to a site, and the user experience, and monetises itself simultaneously.

While the crowd-pulling seminars at ad:tech London seemed to revolve around monetising social media, it seemed that our panel was more frank about the progress made to date. Last.fm, as the poster child of the UK’s Web 2.0 scene (they spoke alongside Skype at the first Beers & Innovation event I organised in February 2006), is still to turn a profit despite its huge audience. Since its acquisition by CBS/ Viacom, it has leeway to continue to grow whilst it pursues this objective.

The next wave of micro media

In turn, the economic shocks reverberating around the world should give us pause for thought. Perhaps the recession we’re poised to enter will precipitate new ways of creating value, and innovative services and strategies that foster that. Recall that game-changing services Craigslist and Flickr were born out of the utility and creativity fostered in the downtime of the last doctcom bust. Keeping an eye on mobile services is probably a good idea.

Steve Bowbrick, reflecting on the session, gives his view:

“The business of marketers should be to invest in durable, authentic content and experiences for their customers, not coming up with increasingly effective ways of taking them to the cleaners. At a conference and trade show devoted to online advertising I think this was a good message to leave behind.”

Whatever happens, we should assume that while micro media may be here to say, its deployment by companies and organisations is not intrinsically clever.

Instead, what will make micro media strategies fly is a combination of experimental chutzpah and purpose to solve real problems. Or else, like Haque says, it could just be about making stuff 1% more efficient, which doesn’t amount to a hill of beans.

[* Of course Web 2.0 has many upsides too, collaborative software being my particular favourite, and services such as Zopa]

—-

PREVIOUS EVENTS ON WIDGETS & MICRO MEDIA:

Beers & Innovation: Aggregator & Upsetters – October 2006 (event report)

Chinwag Live: Media Widgetised – May 2007 (event report)

Mobile Monday London: Mobile Widgets – May 2007

Chinwag Live on Tour: Media Widgetised at ad:tech London – September 2007

Chinwag Live: Micro Media Maze – May 2008 (event report)

Alchemy in the micro media maze

Micromedia makes my life better. For one thing – I don’t have to take comprehensive notes at Chinwag events, because there’s always the trusty podcast 🙂 Thus I spent more of this event using my more evolved faculties of listening and thinking. Amen to that!

L-R: Umair Haque, Ewan McIntosh (The Guardian), Steve Bowbrick, Mitch McAlister (Last.fm), Miles Lewis (Last.fm), Gerd Leonhard

L-R: Umair Haque, Steve Bowbrick, Neil McIntosh (The Guardian), Mitch McAlister (MySpace), Deirdre Molloy (Chinwag), Miles Lewis (Last.fm), Gerd Leonhard

Another good thing about micromedia is that it can re-combine or aggregate into different – often richer – things than its constituent ingredients. The whole is indeed greater… usually. And that’s exactly what happened at Chinwag Live Micro Media Maze last Tuesday 20th May.

PANEL

Umair Haque – Director, Havas Media Lab / Bubblegeneration
Gerd Leonhard – Media Futurist, Author, Entrepreneur
Mitch McAlister – Product Director (Europe), MySpace
Miles Lewis – SVP, European Advertising Sales, LastFM
Neil McIntosh – Head of Editorial Development, Guardian Unlimited
Chair: Steve Bowbrick

From the premise of widgets, and disaggregated, widgetised media more generally – it quickly took off into a much broader debate about the value of media, the challenges for advertising, and the potential of openness for brands, innovators and society more generally.

That’s an exciting leap – and it’s alchemy in my book. Like a previous event we held in Manchester in April – User Centred Advertising – raising bigger questions and breaking out of the ‘media as entertainment’ mindset triggered a much more stimulating conversation with the audience and pointed to an almost boundless horizon of opportunities.

Syndicated companies vs dinosaur brands

And if you’re looking to the future, then Media Futurist (and author of books The Future Of Music and Music 2.0) Gerd Leonhard is your man. Gerd has a way with metaphors and was on good form that evening. He predicted that in the future, there will be one bookmark that represents me, which I can reveal and share different parts of with my friends, colleagues and network.

In the future, most companies are going to be 90% syndicated, he said, as few can afford the huge investment it takes to create a major centralised [aka monolithic?] brand.

Coming from a massively widgetised service, Miles Lewis had some fascinating facts and insights – Last.FM‘s homepage only has 3% of its total hits. They’ve built their success by being all about music and nothing else, he observed. As such, I guess they are one of the leading niche networks – certainly the leading one founded in the UK! [aptly – they spoke at the first NMK Beers & Innovation event I organised in February 2006 on Start Up Culture]

Steve Bowbrick, Umair Haque and Ewan McIntosh at Chinwag Live: Micro Media Maze May 2008

Steve Bowbrick, Umair Haque and Neil McIntosh at Chinwag Live: Micro Media Maze May 2008

The writing on the crumbling walls is that they’re doomed

Lewis estimated that by the end of this year 55% of their users will be partaking of Last FM via widgets (currently that already stands at 40%), of which the largest has 50,000 users, and the smallest just 3. Regarding those thousands of smaller widgets, he wondered – somewhat archly – how the big media buyers and agencies [with their dinosaur mindsets 😉 ]can reach down into these micro audiences.

Mitch McAlister threw his and Myspace’s support behind the tenets of and movement towards openness – what Gerd is doing, and Lawrence Lessig, and a whole lot of other people, plus open source technologies and development. Collaboration, data portability and more are all key.

What’s more, Mitch expected to soon see the majority of traffic to Myspace on non-PC devices. The main stumbling-block has been the mobile network operators but that’s starting to change. Social nets shouldn’t be walled gardens, he stressed.

Brands in the wild and the benefits of remixable culture

Neil McIntosh of Guardian Unlimited said micromedia is good news for journalists, quipping that “nobody wants to be a channel”. The difficulties he saw were twofold. Firstly, it’s harder to serve ads against feeds. The second challenge was context – if you have a brand built around trust, what happens when your content is presented in an upsetting or inappropriate context off your site.

Umair Haque of Havas Media Lab explained that he wrote a long piece entitled The Age of Plasticity in 2005 (accessible as a Powerpoint download from his Bubblegeneration blog), wherein he first articulated and explained at length the idea that we get productivity and efficiency gains when we are allowed to remix things. Haque didn’t mention that he was also one of the two people who independently coined the term micromedia – also in 2005 – the other being leading new media theorist Lev Manovich]

Coops on the mike and Ian Delaney (lurking left) at Micro Media Maze

Coops on the mike and Ian Delaney (lurking left) at Micro Media Maze

Last FM and Myspace have revolutionised and solved the problem of the music industry, Umair said. But what is happening now – apart from micromedia being seen as yet another way to shove shitty advertising down our throats?

Going beyond the trivial mindset…

Umair (who also blogs as a discussion leader at Harvard Business Online) loathes the term ‘monetize’, he said, because you have to *create* value before you can capitalise on it; you have to have a purpose before you can profit from it. It’s not about creating games for Facebook. We in London labour under the delusion that media is entertainment, but media is so much more than that, it’s the interface for so much activity and experience in the world.

He challenged the panel and the audience to come up with something that would help solve real problems, not trivial ones, and create value at the same time.

Gerd Leonhard drew this analogy: in old media control = money; in new media trust = money. In companies embracing new media, collaboration with the audience is supplanting the old business model of control. Gerd’s remarks on a trust-based market reminded me a lot of the ideas of social capital getting a published articulation in Tara Hunt’s book The Whuffie Factor due to drop this autumn.

Media and ad agencies looking in the wrong direction?

Paul Fisher of Advent Capital Partners was first in from the audience with a question. If industries are creating less value, does this mean there will be fewer jobs in the old companies? In turn, where should he be looking for growth areas in terms of investments? For its sheer audacity, this got a few laughs from the audience.

Miles Lewis of Last FM had an interesting perspective on this. He argued that it is media agencies and ad agencies that are the dinosaur industries. The billions of spend they control are not going to where people are, it’s all going into TV and search.

—-

PODCAST ACTION!

Well, that’s what I’ve deciphered from my pleasingly sparse notes… but the debate was long and lively, and continued as people stayed to chat and have a drink afterwards. You can catch it all on the Chinwag Live podcast due later this week. Subscribe here or for iTunes go to the event page.

MORE COVERAGE OF MICRO MEDIA MAZE:

There have been some superb write-ups already from people who attended.

Jonathan Hopkins – Middledigit
Ben Matthews – Pudding Relations
Jemima Kiss – PDA Blog, Media Guardian
David Jennings

[NB. cross-posted on my Chinwag blog]

SXSW 08 panel: How widgets influence music on the web

You could sense the ‘we’ve got troubles but we’re still way cooler than you geeks’ (or are they?) vibe a mile off. The music biz was already rolling into Austin on the last day of SXSW Interactive 2008 before the full-scale SXSW Music conference kicked-off the next day – and they were out in force at this session on the afternoon of Tuesday 11th March.

PANEL:
John Bartelson – VP New Media , Island / Defjam
Rogelio Choy – VP Business Dev, RockYou
Chair: Liz Gannes – GigaOm
Ali Partovi – CEO, iLike
Jian Chen – Frontend Software Engineer, Meebo.com

After a year of Facebook mania, clearly the scent of widgets – and some massive widget players – was enough to lure artists, and indie and major labels into the room (if not the debate), and so it began…

Ali Partovi explained that they’ve built iLike into other social platforms but have also built a set of artist tools that will enable them to do stuff once, and publish / syndicate across Facebook, Bebo and elsewhere.

Bono of U2 started to write a new song ‘Wave Of Sorrow‘ and developed it through a process of discussion with fans on iLike. Partovi showed a video featuring Radiohead, Linkin Park and U2 and then rolled out the stats for some shock and awe impact (BTW, I haven’t checked these stats):

U2 – 2m fans on iLike / 131,000 on Myspace
Linkin Park – 542k iLike / 343k Myspace
Foo Fighters – 887k iLike / 588k Myspace
Radiohead have 1.4m fans on iLike

Through mediating their song development on iLike / Facebook in this fashion, he continued, U2 increased their iLike follower base from 1m to 1.3 million, and they’ve got nearly 10,000 comments on the video posted on U2’s iLike Facebook app about the creation of the song (also available on Youtube) .

Content everywhere: aggregating a wider audience…

Chen from Meebo described their product as chat room widgets embeddable across sites. They also generate traffic into the site and between sites. All the distributed widgets aggregate together a larger audience. Meebo widgets have totally skinnable interfaces for your brand or band.

In turn, their chat widgets recognize and play certain media URLs (video, audio, photo and URL previews). The media capabilities are not just for UGC, he added, but also media syndication.

Chen saw great potential in syndicating exclusive content from high quality content providers. He cited the Kanye West ‘Graduation’ album release, wherein Kanye’s label worked with Buddylube, a web 2.0 marketing management company who do a lot of customization of widgets. Graduation (released 11th September 2007) has now (March 2008 ) sold 950k albums, and had 330k legal digital downloads.

Widget marketing trends & the music value chain

Choy of RockYou said they went from 7m visitors to 45m since they’ve went onto Facebook. RockYou also works on Myspace and Bebo.

From the audience someone asked: how and when do we get to the stage where this is a normal way to market and communicate with fans? Chen replied: when the tools are simple enough for independent bands and indie labels to use.

Moderator Liz Gannes said we should check out Kanye’s blog. Is it all about the marketing? No one is talking about distributing…

Partovi of iLike commented that a lot of bands are thinking of themselves as a media business, where they’ll eventually be able to do an ad-supported model.

Choy said that the notion that artists can monetize on RockYou only works if they come through something like iLike. It’s very difficult process if you want to go into selling music online.

My question (which wasn’t picked, despite having my hand up for while) was: with a million widgets and oceans of UGC, will search and widget aggregators overtake the viral growth of widgets? Do they optimize widgets for search, and how to they monitor the level and spread of widget usage as content gets more and more disaggregated?

[Sidebar: This issue will be addressed at the Chinwag Live: Micro Media Maze event next week, Tuesday 20th May – and Myspace’s European Product Direcetor Mitch McAlister and Last FM‘s SVP of European Ad Sales Miles Lewis are among the panelists you can quiz on this topic. Booking and more info here.]

Future distribution – D2C scenarios and widget overload

Gannes asked the panel: is the distribution business viable for you? Choy said that selling (not just music but also photos, videos, etc) is not part of what RockYou does directly, but it is through relationships… I guess he meant RockYou is part of the value chain.

Partovi remarked that as things get more and more cluttered, utility decreases, usage decreases and it’s harder to get take-up. Things stagnate and there’s less innovation; and innovation is very important.

iLike lets artists know who their fans are based on peoples’ activity on the widget. This gives, for example, Radiohead access to a much bigger audience online than they could handle or attract through their own site. However, people still downloaded their new album from Limewire, and Radiohead got no metrics [never mind revenue] for that, and no email addresses for all those people.

And there’s the rub! Elsewhere that day, as reported by Paid Content, there was a rowdier session on ad-supported music services. If I could have widgetised myself (far preferable to cloning methinks) I would definitely have been there. 😉

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More coverage of this session:

Widgets put music where it’s at – Jemima Kiss, Media Guardian PDA blog

Upcoming evening panel event:

Chinwag Live Micro Media Maze – Tuesday 20th May 2008, London
http://live.chinwag.com/micromediamaze

Widget Week part 2 – Chinwag Live: Media Widgetised

Potent openers are thin on the ground at events, mine especially. Having often developed and programmed the events, I’m normally found delivering safety instructions and other such vital messages in a vaguely ironic monotone (see photos).

So props to Steve Bowbrick for his scenesetting observation at Chinwag Live: Media Widgetised on Wednesday 16th May that the opposing life forces of disintegration and re-formation are encapsulated in the widgetisation of media.

Getting the second event in Widget Week properly underway, Steve canvassed the panel for their definition of a widget and the answers were both resonant and diverse. For their answers, you have to listen to the podcast due this Thursday 24th May.

PANEL:
Mark Taylor – Head of Content, Eircom & founder, Sleevenotez (blog)
George Berkowski – Head of Internet Strategy, BT Retail
Fergus Burns – CEO & Founder, nooked
Jonathan Gabbai – Solutions Manager, eBay
Kaj Häggman – Business Development Manager & Inventor, WidSets (blog)
Chair: Steve Bowbrick

So are widgets internet famous? 😉 George Berkowski, Head of Internet Strategy at BT Retail flagged-up Adsense as the most successful widget to date. He also cited Photobucket, which gets 1% of all internet traffic in the US.

Nooked CEO Fergus Burns was quick off the mark with some headline info about the widget economy. Last year was the year retailers and advertisers started asking “how do I get onto Myspace and onto Vista Gadgets?” You want your widget to be viral, but how do you drive traffic back to your site from RSS and the widget, Burns continued. The challenges ahead mean it has to be fun and it has to give value to the consumer (can you tell Fergus wasn’t giving away too much..?).

Kaj ‘Hege’ Häggman of Widsets stressed the widget proposition has to be simple. They now have 14,000 widgets in their library, 99% of which have been created by users. Doing profile-base widget recommendations is edging very close to advertising he noted.

Widgets – socking it to the portals?

Eircom Head of Content and Sleevenotez founder Mark Taylor explained that the “Kwaydo” engine that powers Sleevenotez (get more info by clicking on ‘Navigation’ on the Zythe homepage), is in fact a platform that powers what he terms “thin portals”.

He acknowledged that on the one hand – with Kwaydo – he is trying to disrupt portal models, but on the other – with his (Irish incumbent telco) Eircom hat on – to maintain them. He said widgets can extend your brand’s borders, but as a widget sceptic he is concerned that widgets are going to become another marketing and advertising tool.

Outfits like Ning and PeopleAggregator are going in one direction against the old portals, he said, but portals still have a role to play and while we are trying to figure out what that role is, it is clear that there is a value in aggregating large audiences. In turn, those portal-type aggregators can also provide access to exclusive content that you can then widgetise.

Utility versus monetisation?

eBay Solutions Manager Jonathan Gabbai stressed that widgets facilitate the distribution of content – which begs the question how do you monetize that? eBay is good for that because it is time-sensitive. The newly launched eBayToGo widget can be embedded on a blog or website giving you live updates on your auction. It this scenario, it’s important to have an open API, as has Amazon and Google, he added.

From the audience Pauli Visuri described a widget rather poetically as a “tear-off” from a website. Robin Gurney of (Estonian-based) Altex Marketing sounded a more cynical note, saying this monetized widget “sounded like a glorified version of affiliate marketing”.

Jonathan Gabbai concurred welcomingly that widgets do lend themselves to affiliate marketing. Someone else said the whole widget phenomenon must be like a “freak-out nightmare” for content owners and publishers, and George Berkowski noted that that is part of it, but there is also a real value for the user – the widget services from Slide, Photobucket and RockYou have great usability and utility for users. They have an altruistic and positive brand effect, and at the same time those companies are monetizing widgets very well.

Applications for and by the masses?

Kaj Häggman observed that it’s as much about allowing users to generate applications, and it’s a new paradigm that that not only gives users control to create their own apps, it’s also about giving control back to the developers. The mobile industry needs to be able to talk the language of the web industry, he stressed; a remark that triggered a flurry of comments about how the mobile industry’s business models were being put on the line by the arrival of the mobilized web, hence their reluctance to embrace it until the last moment possible.

Steve Bowbrick mused on the impact on site owners who have to host the applications and content of others via embedded widgets; the prospect of that happening on phones struck him as even more iffy.

One widget into 25 platforms does not compute…

A delegate from Profero noted that the arrival of Apollo from Adobe opens out the Flash platform to developers and he suggested that this would make it all more popular and widespread. Fergus Burns countered that the recent launches of Silverlight (from Microsoft) and Apollo means that we will end now end up with about 25 different widget platforms that developers will have to develop differently for.

This issue was thrown into even sharper relief by Opera Software ’s Charles McCathieNevile two nights earlier at Mobile Monday: Mobile Widgets. If development work around incompatible widget platforms is not in itself going to become a barrier to the development of widgets, he reflected, support needs to cohere around the notion of a standardised widget spec which is validated by the W3C (more here).

Dave Markham from Vodafone wondered wasn’t it all more about making sure it all works. Vodafone want it to work with widget builders, he said, and he asked the panel whether it would be a better experience for mobile users with downloadable widgets or online widgets.

Widgets as symbiotic parasites

Kaj Häggman commented that a widget is a very personal thing and there is a possibility to put an ad in that space that is not intrusive. Jonathan Gabbai observed that the big question here was one of trust. For kids, you could see a widget as a Harry Potter sticky note. So does that mean it’s all pre-packaged content?

A widget can be classified as a web service, said Burns. Dave Hornick on Ventureblog reckons it can be symbiotic (the Harry Potter-type, providing value for both host and widget provider), or that such as found with Slide, which is a parasitic widget that makes revenue for the widget provider.

Steve then interjected with a vivid analogy of an ecosystem of parasitic widgets leeching around the place and monetizing the attention of hosts on the one hand, and benign widgets that that swung freely between the trees.

Personalisation and widgetised identity

George Berkowski cited the robust personalisation of SnapVine. In turn, he continued, you have the phenomenon of widgetised startpages, whereby you can go to a celebrity’s page, for example on Netvibes, and it has all her content aggregated, plus you can leave voicemails and comments on it.

Lingo allows you to do the same with video and audio. There’s nothing to download, sort of like Skype without the download.

Alex Cooper of 1UpSearch asked if the Widsets business model was one of collecting demographic information and he wondered how that will pan out – will we be spammed by Nokia? Häggman explained that it will be opt-in as they value peoples’ privacy. Steve commented that it all was a bit like widgets as Big Brother or CCTV on your desktop.

Widgets atomised or widgets humanised?

Mark Taylor cited the utility of a private banking widget and Fergus Burns flagged-up the Ding! widget produced by South West Airlines, noting that it had 2 million downloads and there was no privacy issue with that. Jonathan Gabbai remarked that there’s a difference between installation and download, for example, with Firefox you download the extensions but it’s a low barrier to entry.

Finally, Gavin O’Carroll of Rememble asked the kind of mind-melting question that I had hoped audience members might ask in a previous post about this event. Where does it stop? Can you widgetise widgets? For example, will we have banner ads in widgets, and is there any reason why you can’t advertise in widgets?

Check the podcast (due Thursday 24th) for attempted answers to that, as at that point my humble penning skills failed and minutes later chair Steve Bowbrick said it was a wrap.

Stowe Boyd (who discovered the event via Dopplr when he arrived in the UK that afternoon) remained quiet during the discussion but told me afterwards he thought the event was too focused on monetisation (he also tweeted this) and didn’t really look at the user. Fair dos, but isn’t it fair enough to examine potential business models when you want to make a living?

Freakout nightmare or scent of a persona..?

What I felt was also missing was the publisher and brand perspective in terms of future media (although there were plenty of mainstream media publishers in the audience) – how do they maintain their brand identity in the web feed, widget and mash-up space without hugely irritating or inconveniencing people, and how do they fund widgetisation? Alan Patrick is convinced advertising in feeds will fail (see his post on the event). So what will work?

The broader issues of widgetisation outlined in the event webpage were barely touched upon and I would like to have heard more from panellist Mark Taylor too. Check out Mike Butcher’s excellent post on Sleevenotes from back in December 2006 for more on what Mark is up to.

Priya told me later that evening she thought a widget was like a digital perfume. But then we started quibbling over whether she meant natural human scent, perfume or aftershave, and then whether or not we favoured aftershave. And so the lights went down and off I hobbled to Madame JoJo’s for the tail end of the book launch party for Richard Barbrook’s Imaginary Futures: From Thinking Machine to Global Village.

Yep, another Chinwag Live to remember when we’re in yr rockin chairz gluing captions to yr cats…. (cheers Ian). Hmm, did I already mention the photos?

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Please bear in mind my notes were sporadic and atomised 😉 For the complete lowdown on what was said, subscribe to the Chinwag Live podcast via RSS or iTunes.

Internet World snippets

The Chinwag posse pulled-off what I’m dubbing a “pop-up event” at Internet World last week.

Much like the pop-up restaurant phenomenon – one minute there’s nothing but an empty shell auditorium, then all of a sudden you have a well run event in full flow, with a big audience and high-level discussion.

Thanks to the lackadaisical support of IW’s on-hand sound technician, our recording of the Wednesday 2nd May event for podcast was royally screwed. Luckily however, the panel was a re-run of our 27th March event (for which there is a podcast) PPC Earthquake – although each discussion was quite different and the audience had different questions, plus we had Yahoo joining the panel at Internet World.

The expectant generation

I dipped into a few other sessions later that afternoon, including one in the Brands Reignited stream ‘Client 2.0 – Best Practice Strategies for Running an Agency Focused On New Generation Clients – The Millenniums’. Beat that for a snappy title 😉

The observation that struck me most was made by panellist Alex Wright, MD of Agency.com, in reply to a question about the opportunities and challenges brought on by a new generation of connected clients and staff:

“They expect to become Marketing Manager and they expect a 20-30% pay rise and if they don’t get it, they’ll change jobs every 12-18 months. A sense of entitlement [and personal sovereignty, I’d add] defines them [the millennials] and this is something we’ll see in both agencies and clients.”

Subscription-based social networks

Then I happened upon (Chinwag UK-netmarketing mailing list stalwart) Richard Gale’s session on the development of social networking in Playboy TV UK – ‘Platform Hopping with the Bunnies’. His standout point for me was:

“The concept is now the vital element, and understanding the nature of ego and how it affects premium rate social networking.

A strong concept can go multi-platform and become a brand in itself…. You can make a social network that operates in the black from month-one.”

The snippable web

Amid the rush of last-minute event preparations that morning, I missed the talk in the Web 2.0 Experience strand given by BT Retail‘s Head of Internet Strategy, George Berkowski on ‘Aggregation, Web-clipping and the Right Web Platform’. So I’m still intrigued to hear his contributions as a panellist at our upcoming Chinwag Live session on 16th May – Media Widgetised.

And then of course there was the Chinwag Drinks afterwards at the pub down the road. A lovely bunch of people came along and we had a grand time in the beer garden 🙂

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[BTW, I expect some of the above URLs may not work by 2008, as the Internet World website spurns several of the basic tenets of good web design – unbroken URLs being one of them. A good list of further tips for reference – 43 Web Design Mistakes You Should Avoid]