Sunday, June 3, 2007

Think of 'Webs' Not Sites, Content as Data & Hang With The Kids


Washington, DC -- The way to succeed in the world of Web 2.0 is to think less about building Web sites and more about building your “web” -- the many ways you can lead Internet traffic to your content and your site by connecting your data (i.e. content) to other data being eyeballed on the Internet.

This was the advice shared this afternoon by Barry Parr, Senior Media Analyst at JupiterResearch. Parr gave an enlightening overview on “where information is headed” in the ballroom of the Mayflower Hotel during the 31st Annual SIPA Conference here in DC.

Here is a quick recap of Parr’s insights, roughly in the order he presented them, and almost certainly with typos, disjointed prose and plenty of tasty non sequitur for you to ridicule (I am glad I could be here for you).

Parr said online growth is starting to flatten. If I captured the slide right, there are 200M users expected in 2011, compared to 60M in 2001, but user-generated content is increasing. Readers of blogs, for example, doubled in 2006 over 2005. Ad sales are growing at 10 percent a year. Content relating to personal ads and entertainment lead the way. Video and audio are building in popularity and promise to be a big part of the Web’s future.

In the traditional Internet, we all went for rapid growth, increasing audience size, greater ad inventory. We looked for increased revenue, invented production techniques, converted our traditional audience to the Web, expected startups and new entrants. We served unsophisticated users.

Make Them Stay

In the Web 2.0 environment, he said, we work with small staffs and little investment, marketing our sites through word of mouth, not ads. We are moving to increased intensity of use, page yields, more sophisticated users, looking for cost control, using existing production techniques. We pursue online users, rethink the organization and anticipate consolidation.

We see companies buying companies and helping them grow within their organizations, Parr said. The trick now is “getting people to spend more time on your web site.”


People Formerly Known As the Audience

Borrowing a phrase from a former colleague at the San Jose Mercury Times, Parr referred to “the people formerly known as the audience.” Now they are getting involved.

“One-third of people on the Web are creating content somehow. Another 20 percent read the content. Another 50 are not participating at all.” Parr said there is opportunity in those numbers.

If you have a population coming to your service, anticipate 10 percent of people to participate in the beginning, he said, but expect growth if you do it right. “We are turning into a nation of content creators in a way that may have been impossible to imagine even five years ago.”

Younger users are far and away more interested in creating content. Three quarters of 18 to 24-year olds are creating content on the web. More than half of the 25 to 34 crowd are creators or readers.

Good Sites

Want to see a site Parr likes? Go to http://www.yelp.com/, where people comment on the local services where they live. Just knowing that someone likes a service isn’t enough, so the user profiles help you understand what people like you like.

Parr also likes http://www.linkedin.com/. So did many in the audience. While it’s a great professional network, it also is a good source of information, he added.

Another site is http://www.glam.com/. While just “okay,” it has a huge distribution network and, according to Parr, is “the fastest growing site in Media Metrics 100, and one of the fastest growing content sites ever, because of the understanding of the distribution model, making it work, and superior networking.”

Redesign Reviled, But Effective!

Parr noted that USA Today executed a major redesign of its site in March. Traditional users reviled the new look, even though it put user-generated content front and center, an unusual feature for newspapers. Admitting he’s not a fan of the makeover, Parr said USA Today nearly doubled the rate of pages viewed per visit, moving the needle from 2.5 to 6.5! That is not an easy number to increase, Parr said, and other papers have tried this only to crash-land due to crazy, stupid and even hateful posts.

“Creating communication on a site requires a lot of hard work and cultivation and editorial control,” Parr warned. “Editors are used to thinking that products they create come at the end of a long process. They believe that on the Internet ‘everybody is an idiot and post garbage,’” Parr said. “They should realize there is a middle ground.”

Parr’s recommendations to the audience:

Ø Start participating in online communities.
Ø Plan now for reader participation.
Ø Determine whether social networking makes sense for you.
Ø Learn how to nurture and moderate the community.
Ø Start a list of features you need from your content management software. Keep track of what you see that you like. Monitor other publishers.
Ø Think in terms of solutions, not features. Before saying “we really want to do a wiki,” first figure out what you want it to do and what problems you are trying to solve.
Ø Prepare to work. “Communities are hard to maintain and with no plan building one could be a disaster.”

Develop a Web, Not a Site

Parr said most people consider Web 2.0 as community content creation or interactive Web sites. While those are components, he said publishers should focus on developing “a Web and not a site,” then thriving on mediating that community.

“At a newspaper we always wanted to control the customer, and if someone got between us and the company we got uncomfortable,” he said. “Getting used to intermediation is difficult for publishers to do.”

Parr showed one video clip that was recorded by CNN, then posted on YouTube by several individuals, then cited by two blogs, and finally fed to him through Google Reader. “That is three levels of intermediates between the user and CNN,” he noted. “That will get deeper and broader as time goes on.”

All The Kids Are Doing It

Young users prefer to get their news from portals, Parr said, followed by cable news, then broadcast news sites, then their ISP. Local newspaper sites are at the bottom. Parr said he expects the 18-to-34 crowd -- 60% of which prefer portal-fed news -- to continue this preference. Portals don’t generate news, yet most people trust portals just as much as traditional sources of news, Parr explained. Many paid news models aren’t working right now, but mostly because these sites are not taking advantage of a lot of potential traffic. For some sites as much as half of their traffic is coming from intermediate giant Google.

But how does a publisher compete? Get stories on other publishers’ sites, use syndication like RSS, work with aggregators, get affiliates to buy your content and redistribute it. Join social networks, start an online forum, figure out what features help your users solve problems, start using feedburners and track activity. "Don’t get distracted by buzzwords," Parr cautioned. You don’t need to have a wiki if a wiki doesn’t make sense for your community. Finally, think about who your distribution partners are, both upstream and downstream, and seek partnerships.

Data Are King?

“Treat content as data,” Parr said, and “think about how you want your WEB to look.” An example of the importance of seeing “content as data in a web,” he noted that a most-viewed story recently on http://www.wsj.com/ was two years old. Why? Because it was mentioned by a popular blog as a valuable piece on investments. A great story, but how can you make this happen? Parr’s suggestion for how to develop relationships with bloggers: treat them like traditional journalists. Reach out to them, give them quotes, and share statistics they can use. (I would add: flatter them, refer to them in ways they will find out, and, if you ever meet them, make sure you dress exactly like them. Bloggers dig that.)

A note for us text-based publishers: “Video is going to be a big part of the net, and a big piece of the use of video will be on the net.”

Can we be over-protective with our content? Apparently so. “Digital Rights Management is a bad idea. It is a disaster for the end user,” Parr said. “I am not saying it is inappropriate in all cases, but you need to think about the impact on the end user when you do it.”

Tiny Bubbles

Finally, Parr told this blogger (I always wanted to say that) that he attended the recent Web 2.0 conference in San Francisco. He described the mood there as “very bubbly,” likening it to the atmosphere in year 2000 around the swelling Internet bubble.

“There was a lot of excitement with a lot of buzzwords and hype,” he said, “and that concerns me.”

The buzz after Mr. Parr's session was extremely positive. It was an excellent presentation and just right for SIPA attendees. Here is his email address if you would like to reach him:
bparr@jupiterresearch.com.

16 comments:

Andy McLaughlin said...

Yes but, can you monetize? I enjoyed Mr. Parr's comments - found them insightful and useful. But still, the question is (as in his CNN to YouTube to Bloggers to GoogleReader example) when someone else pulls my content, passes it on and then subsequent generations pass it along as well - how do I monetize that? Commendably (Sp?) Mr. Parr admitted he was not sure - but still encouraged us to allow this kind of sharing. It sounded, suspiciously, like attitudes in 1999 and 2000 - "build an audience and we'll figure out later how to make money." Those models never worked out. How do we avoid the same mistake again?

Overall though - he seemed to get where we were in our web development and offered some good, research backed ways we could improve/focus our web efforts.

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