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Wednesday, Feb. 10, 2010
The Way Out For Publishers, Part 2 of 2
by Jaffer Ali, CEO of Vidsense
I must admit that anyone reading Part 1 of The Way Out
For Publishers, would be hard-pressed to find therein a
prescription for what ails us. That's because I felt it
necessary to first triage the patient, who it turns out is
much sicker than we thought. The results indicate the need
for a radical yet simple restructuring of the media eco-
system.
For publishers, it means admitting the truth behind what
the miserable click thru rates suggest: Advertising is
no longer a viable intermediary. What does this actually
mean?
It means that advertising is no longer a welcome and
trusted middleman between audience and advertiser. Click
rates of less than .1% illustrate a total breakdown of
this essential engagement process. The advertising model
is broken. Advertising cannot deliver the message when
it is being ignored in every medium.
Advertisements have been the carrier wave for the message.
Online advertising has seen the decline of banner click
thru rates from 5% in 1998 to the miserable .1%. So if
advertising cannot deliver the message, advertising must
become the destination.
Once we admit the model is broken, we can move to a
solution. Simply put, PUBLISHERS NEED TO USE THEIR
CONTENT TO DELIVER THE AUDIENCE TO ADVERTISERS. I use
bold type here for a reason, and I repeat: PUBLISHERS
NEED TO BUNDLE CONTENT WITH VISITOR AND DELIVER BOTH
TO THE PAYING ADVERTISER.
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For example, imagine a Sports Illustrated cover story on
Tiger Woods. Now further imagine that when you visited
SI.com there was a headline for the story, a brief
paragraph about it, and a link, which when clicked on,
sent you to a special landing page on Nike.com where you
could view the chosen article in its entirety.
You have just bundled the content AND the visitor to Nike.
And Nike will pay on a per-click or per-visitor basis for
that content AND the visitor. Content + Visitor to the
Brand website SUCCESS.
Publishers need to view content as a means to an end, and
not as the end itself. As has become painfully apparent,
content for content's sake has no dollar value. It only
assumes business dimension if and when it drives traffic
to a paying advertiser. This diversion of your own traffic
may seem counter intuitive, but ask any brand if they will
pay more for content IF THE VISITOR IS ALSO ATTACHED? Of
course they will!
Publishers need to appreciate that they are in the
advertising business, not the entertainment business,
and that the audience doesn't care where they consume
content as long as they get what they want. In fact,
they prefer sites with less ad clutter (See Google and
DrudgeReport.com for an idea of minimal ad clutter).
Of course publishers cannot effectuate this change without
the active support of brands and advertisers. For brands,
this means understanding that their online futures will
be better served by challenging the popular albeit false
assumption of advertising as intermediary and by re-
positioning themselves instead as welcoming destinations.
It means that marketers and brands must view their
websites as the real nexus of engagement. Once they do,
the rest is easy.
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Is this a huge leap of faith? Absolutely not!
This is the way it used to work and the way it still can
work today. P&G's soap operas, Hallmark Theater, Texaco
Theater, Geritol's Ted Mack Amateur Hour, Mutual of Omaha's
Wild Kingdom...trusted names all that understood the value
of brand as destination.
Some brands are already nibbling at the edges of this
renaissance in theory and practice. Coca Cola has built
numerous microsites to engage audiences. Lexus uses
webisodes that engage the audience and drive traffic to
their site.
I understand this road is not without pot holes. But
utilizing quality content as the mechanism to drive
engagement has ALWAYS worked, and will work again. The
economic equation for bundling the visitor PLUS the
content portends a clean bill of health for the entire
media ecosystem.
Publishers seeking to control the branding process on
their own sites have a losing hand. Advertisers who
have bought into this failed model have faired no better
and are missing real opportunities. Engagement should
rightly occur -- and reasonably can only succeed -- within
the exclusive, controlled environment of a brand's own
website.
If any publisher or advertiser wants to discuss this
further, feel free to email me at j.ali@vidsense.com
or give me a call. We can create our own future together.
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